RESTRICTED
WORLD TRADE WT/ACC/HRV/30
11August 1997
ORGANIZATION(97-3358)
Working Party ontheAccession ofCroatia Original: English
ACCESSION OFCROATIA
Additional Questions andReplies
totheMemorandum ontheForeign Trade Régime
(L/7466)
ThefollowingadditionalquestionsandrepliestotheMemorandumontheForeignTradeRégime
havebeenreceived from theRepublic ofCroatia.
_______________
Table ofContents
Section Page Questions
II. ECONOMY AND FOREIGN TRADE
II.1 Economy 1 1-2
II.1.(b) Main directions ofongoing economic policies 1 3
II.1.(b)(i) Privatization 3 4-16
II.1.(c) Current economic situation 8 17
II.2. Basic Features ofForeign Trade oftheRepublic ofCroatia
II.2.(a) Foreign trade 9 18
II.2.(c) Foreign debtoftheRepublic ofCroatia 10 19-21
III. INSTRUMENTS AND MEASURES OFTHE FOREIGN
TRADE SYSTEM OFTHE REPUBLIC OFCROATIA
III.1 ThelawonForeign Trade Operations 12 22-24
III.1.(c) Special forms offoreign trade operations 13 25
III.1.(d) Long-term production co-operation 13 26
III.1.(h) Newlegalrequirements inoperations withforeign countries 14 28-35
III.2.(c) Import charges andfees 16 36-37
III.2.(d) Taxation regime 17 38-43
III.2.(e) Tariff preferences 19 44
III.2.(f) Non-tariff measures applied toimports andexports ofgoods 19 45
III.2.(f)(i) Quotas 20 46-54
III.2.(f)(ii) Licences 24 55-58
III.2.(g) Customs valuation 27 59-68
III.2.(h) Rules oforigin 30 69-71
III.2.(j) Standards andcertification 31 72-99WT/ACC/HRV/30
Pageii
III.4 Incentives forExports ofGoods andServices 50 100
IV. OTHER POLICIES AFFECTING FOREIGN TRADE
IV.1. Industrial Policy
Industrial property 50 101-112
Copyright andrelated rights 50 113-114
Geographical indications 57 115
Layout designs ofintegrated circuits 58 116
Protection ofundisclosed information 58 117
Enforcement 58 118
IV.2. Agricultural Policy 59 119-121
IV.2.(a) System ofsubsidies inagricultural production 60 122-134
IV.2.(b) System ofguaranteed prices 64 135-136
IV.2.(c) Special feesonimports ofagricultural andfood
produce(Surtax) 65 137
IV.4. Foreign Exchange System andExchange RatePolicy 65 138
IV.6. Government Procurement 66 139
IV.6.(b) Government commodity reserves 66 140-143
IV.7. State-trading Enterprises 69 144-146
IV.9. Subsidy Policy 70 147-149
V. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
V.1 Bilateral orPlurilateral Agreements Relating toForeign
Trade inGoods andTrade inServices 71 150
VI. TRADE INSERVICES
General 71 151
Banking 71 152-153
Insurance 72 154
Transport 73 155
Telecommunication services 73 156
Policies affecting trade inservices 73 157-158
Market access andnational treatment 74 159-162
VII. LEGISLATION 75 163
ATTACHMENT 1
Croatian Proposal oftheNon-Tariff List"D"-Import for1996 78WT/ACC/HRV/30
Page1
II. ECONOMY AND FOREIGN TRADE
II.1. Economy
Question 1
WillCroatia request developing country status onacase-by-case basis inlightofeachprovision
oftheWTO Agreements? Wewould liketoexamine whether developing country status isgranted
according toeachprovision andaccording tothespecific situations ineach areaofitsforeign
trade regime, while atthesame timetaking intoaccount thattheCroatian economy hasbeen
affected bywarandthatitisnowinatransition period tomarket economy.
Answer:
Asexplained inAppendix 1todocument HRV 4,Croatia considers itselftobestilladeveloping
country. Atthesame time, asaformer partofYugoslavia, itisacountry which isintheprocess
oftransition toamarket economy. Inaddition, Croatia isstillintheprocess ofrecovery from the
warandwishes torecall thatanimportant, resource-rich areaofthecountry, Eastern Slavonia, isonly
laterthisyearexpected tobereunited withCroatia. Under these circumstances, while strong efforts
arebeing undertaken bythegovernment tobring itsforeign trade regime including therelevant laws
andregulations fullyintoconformity withtheWTO requirements, thismaynotbepossible inallareas
prior toaccession. Consequently, Croatia mayhavetoavailitself ofthepossibility, provided forin
therespective agreements, fordelayed application ofsome WTO provisions foralimited period of
time. Aposition Paper indicating these areas willbeprovided shortly totheWTO Secretariat.
Question 2
Could Croatia indicate when itwillsubmit offers ofitstariff schedule andthatofitsservices
commitments?
Answer:
Croatia submitted itsinitial offerongoods andservices totheWTO Secretariat on4April 1997.
II.1.(b) Main directions ofongoing economic policies
Question 3
According totheresponse toquestion oneinWT/ACC/HRV/11, local governments mayapply
price controls onlocal utilities such ascentral heating, water, gas,sanitary services, public
transportation, etc.GATT Article IIIparagraph 9recognizes thatinternal maximum price control
measures canhave effects prejudicial totheinterests ofcountries supplying imported products.
Accordingly, members applying suchmeasures shall takeaccount oftheinterests ofexporting
countries withaviewtoavoiding tothefullest practicable extent suchprejudicial effects.
- Please provide theWorking Party withacopyoftheLawontheSystem ofPrice controls.
Does Croatia intend torepeal theprice control system orotherwise limit itsscope prior
toWTO accession.
Public utilities of"strategic interest" extending electricity, petroleum andpetroleum products,
railways, television, postandtelecommunications, etc.,setprices according tomarket conditions.
- Arelocalgovernments abletoreadjust themarket-based prices ofthese goods andservices
setbythepublic utilities of"strategic interest"?WT/ACC/HRV/30
Page2
Theanswer toquestion 1ofWT/ACC/HRV/11 states thatindirect price controls (price ceiling,
decreasing prices, andestablishing prices) areallowed inorder toprevent market disturbances
withregard toprice fluctuations; direct price controls aresetbytheGovernment ofCroatia,
ontheproposal oftheMinistry ofEconomy, andonlylastforasix-month period.
- Please identify thegovernmental authorities which areallowed toinstitute andadminister
indirect price controls.
- Aretheindirect price controls, likethedirect price controls, onlyallowed toremain in
place sixmonths? Dolocalgovernments havetheability toreadjust direct orindirect price
controls imposed bytheGovernment ofCroatia?
- What procedures must befollowed inorder forgovernmental authorities toinstitute direct
orindirect price controls? Dothelocal governments publish orotherwise notify their
decisions toimpose price controls?
- HastheGovernment ofCroatia imposed anyform ofdirect orindirect price controls,
suchasthose described inyour reply toquestion oneofWT/ACC/HRV/11, during the
pastthree years? Ifyes,foreach instance, please describe theprice control used, the
product orservice covered, thepurpose fortheapplication ofthecontrol, andtheperiod
thatthecontrol wasineffect. Were thedecisions toimpose theindirect price controls
published andwere importers oftheaffected products/services promptly notified?
Answer:
Thebasic principle oftheLawontheSystem ofPrice Controls intheRepublic ofCroatia
isafreeformation ofprices, i.e.theentities performing economic andother activities formtheprices
oftheirproducts freely according tomarket price.
However, theLawdetermines thecases when itispossible fortheGovernment tointervene
andtolimitthefreeformation ofprices through prescribing measures ofdirect price controls.
Themeasures ofdirect price controls could beintroduced, according totheLaw, onlyifmarket or
prices disturbances occur, orinorder toprevent monopoly oftheprice formation. Inaddition, the
Lawdetermines thatthose measures aretemporary, (sixmonths).
Also, theLawauthorises theGovernment oftheRepublic ofCroatia tointroduce ameasure
proscribing thatcompanies havetoreport thepricelistsorratesofcertain important goods andservices
tothecompetent ministry, 15daysprior totheapplication ofnewprices.
Thegoods andservices concerned aredetermined byaby-law regulating thewayofreporting
price lists.
Thisprovision oftheLawdoesnotrepresent themeasure ofpricecontrols, because itneither
determines theprice northeelement ofprice formation.
Intheperiod of15days, from thereporting oftheprice uptoitsapplication, theministry
canobject, i.e.aftertheanalysis ofthereasons fortheincrease ofprice, theministry caninfluence
thecompany tocorrect theprice.
Itisimportant tonotethatiftheministry doesnotputanobjection within theperiod of15
daysfrom thereception ofreport, theprices canbeapplied afterthisperiod oftimeInsome cases
thisperiod fortheapplication ofnewprices orratescanbeshortened.WT/ACC/HRV/30
Page3
IncompliancewiththisLawtheGovernmentoftheRepublicofCroatiaadoptedon13May1993
theDecision ontheObligation toReport PriceListsorRates ofsome Goods andServices. ThisDecision
wasamended twotimes ("Official Gazette", No.45/93, 47/93 and78/93). Italsoadopted theDecision
ontheObligation toReport Price Lists orRates ofCertain Legal Persons ("Official Gazette", No.
77/96) on14September 1996 which prescribes theobligation oftheprices listforthelegalpersons
owned bytheRepublic ofCroatia tobereported.
According totheDecisions mentioned above, thereport ofprice listsisobligatory for:daily
milkforconsumption, fertilisers, wheat flour, bread type850,petroleum products, natural gas,electric
energy, radio andtelevision subscription, transportation ofpassengers andfreight inlocal railand
maritime linetraffic, standard letters andpostcards, telephone impulse, telephone subscription, toll
fortheusage ofroads, bridges andtunnels, official forms whose usage, contents andformisregulated
bylawsandotherregulations,roundwoodlogs,cubicwoodandtheservicesofloadingandtransportation
ofwood sortings ("Official Gazette", No.78/96).
Thebodies responsible forprices wereestablished withthelocalauthorities. Their taskisto
analyze pricemovements andtheimpact ofthemeasures ontheeconomic policy andother instruments
onprice movements.
TheLawonSystem ofPrice Controls stipulates that: (i)thegovernment authority incharge
ofprice control determines goods andservices forwhich theprice reports should besubmitted tothe
competent authority bytheeconomic andother entities; (ii)datathatthepricereports should contain;
(iii)deadlinesandways ofsubmitting thedata.
Except forthementioned measures, theLawauthorised thestateauthorities toprescribe the
protection prices forcertain agricultural products. Theproducts andprices aredetermined bythe
Government.
Thelocaladministrative bodies arenotallowed tochange prices ofproducts andservices of
those public enterprises which areowned bytheRepublic ofCroatia andthattheregulations onprices
aresetbytheGovernment oftheRepublic ofCroatia.
Thelocal administrative bodies areresponsible forthedirect andindirect price controls of
public utilities (central heating, water supply, sewage system, cleaning, distribution ofgas,public
transport, etc.), aswellasother services oflocalimportance.
Themeasures ofdirect pricecontrols which areunder competence oftheRepublic areadopted
bytheGovernment oftheRepublic ofCroatia while theyareimplemented bytheministry competent
forprices.
II.1(b)(i) Privatization
Question 4
Wenoted, inWT/ACC/HRV/5, thattheCroatian Pension Fund wastoreceive one-third ofthe
shares oftheenterprises thatwere notprivatized inthefirststage oftransformation. Does the
Government ofCroatia haveanypower tocontrol theinvestment decisions made bytheCroatian
Pension Fund?WT/ACC/HRV/30
Page4
Answer:
TheCroatian Pension Funds (there arethree ofthem) areindependent legalentities andare
notpartofthegovernment administration. Therefore theGovernment ofCroatia hasnolegalpower
tocontrol theinvestment decisions oftheCroatian Pension Funds, However some members ofthe
Croatian government havebeenappointed totheSupervisory Board ofthePension Funds.
Question 5
Arethere anyconditions orrestrictions placed ontheability ofthepension fund todispose of
theshares itreceives during the"second stage" ofprivatization, pursuant tothe1991 Lawon
theTransformation ofSocially-Owned Enterprises?
Answer:
ThePension Funds havenorestrictions onthedisposal oftheirshares. However, thedisposal
ofshares hastobeapproved bytheSupervisory Board, andsomemembers oftheGovernment ofCroatia
areequal members oftheSupervisory Board.
TheCroatian Privatization Fund (CPF) receives theremaining two-thirds oftheshares ofthe
enterprises thatwerenotprivatized inthefirststageofthetransformation andisresponsible foravariety
ofmethods todispose ofitsholdings, including tenders opentoforeign investors.
Question 6
Areforeign investors permitted totender offers forthepurchase ofshares inallenterprises being
privatized inthe"second stage" bytheCroatian Privatization Fund (CPF)? Ifnot,what arethe
criteria being applied byCPFtodetermine forwhich enterprises foreign investors willbeallowed
toparticipate?
Answer:
Foreign andlocalinvestors aretreated absolutely equal andarepermitted totender offers for
theshares inallenterprises being privatized inthesecond stage bytheCroatian Privatization Fund.
Question 7
Itwasnoted, inWT/ACC/HRV/5, thattheresults oftheprivatization program todateare
impressive with respect toFSOE 's.What ismeant bytheabbreviation FSOE(s under the
transformation program? Howdotheprocedures fortheprivatization ofthese enterprises differ
from other public enterprises pursuant tothetransformation program?
Answer:
FSOE stands for"former socially owned enterprises", anddescribes aspecial typeofownership
andmanagement structure informer Yugoslavia, differing frommanagement andownership structures
incountries oftheCouncil forEconomic Cooperation, suchasHungary, Poland former Czechoslovakia
andothers. Inessence "socially owned enterprises" hadahigher degree ofautonomy inshaping
managementdecisions,andalevelofcompetitionunknowntoothersocialiststateswaspromotedbetween
enterprises.WT/ACC/HRV/30
Page5
Question 8
According toWT/ACC/HRV/5, adynamic secondary market offoreign exchange deposits has
developed between depositors offrozen foreign exchange deposits facing liquidity problems and
individuals orentities seeking anindirect discount onthepurchase ofenterprise shares. Please
describe thissecondary market. Isitadministered bytheGovernment ofCroatia?
Answer:
Thesecondary market forfrozen foreign exchange deposits (FFED) isnotadministered by
theGovernmentofCroatia,howeverthegovernmentallowedthepurchaseofapartmentsandthepurchase
ofshares (from enterprise going through the"second stage" ofprivatization) withFEED 's.Thepurchase
ofapartments from themunicipality waspossible, however theFEED 'swere only valued at
approximately 75percentoffacevalue. Some specified shares ofenterprises inthesecond stage of
privatizationwereparticularlyearmarkedtobepurchasablewithFEED's.FEEDs'wereandaretradable.
Onecanorcould buythematbanks foraround a30percentdiscount andonecould equally sellthem,
however atadiscount.
Question 9
Areallholders offrozen foreign exchange deposits allowed toparticipate inthissecondary market,
oronlythose facing liquidity problems?
Answer:
Allholders ofFEED 'sareallowed toparticipate inthemarket.
Question 10
Areholders offrozen foreign exchange deposits allowed topurchase enterprise shares forall
enterprises being privatized, oronlyforthose enterprises going through the"second stage" of
thetransformation program?
Answer:
Only those enterprises going through thesecond stage ofprivatization canbepurchased with
FEED 's.
Question 11
Canholder offrozen foreign exchange deposits apply their deposits tothepurchase ofshares
ofenterprises thathave already completed theprivatization process, example, from private
investors onasecondary market?
Answer:
Provided theholders ofshares inalready privatized companies arewilling toaccept anFEED
aspayment fortheshare, thisispossible.WT/ACC/HRV/30
Page6
Question 12
Please identify andbriefly describe the"30large troubled enterprises", noted inWT/ACC/HRV/5,
thatcould bedealt withbytheBank Rehabilitation Agency.
Answer:
InWT/ACC/HRV/5 itwasincorrectly stated, thattheshares of30large enterprises wereto
betransferred totheBank Rehabilitation Agency. Infacttheenterprises inquestion amount to13and
arenottobedealtwithbytheBank Rehabilitation Agency butbythe"Agency fortheRehabilitation
ofSelected Enterprises".
Theenterprises inquestion are:
Industry: Name:
Shipyards Brodosplit
Uljanik
3-Maj
Brodotrogir
Kraljevica
Steel production eljezara Sisak
Textile production Pazinka (Pazin)
Dalmatinka (Sinj)
Velebit (Karlovac)
Diokom (Split)
Steel sheet Valjaonica celika(Kumrovec)
Steam engines TPK-EPO (Zagreb)
Meat production Cromax (Bjelovar)
Question 13
Please provide theWorking Party withacopyofthenewPrivatization Law, thenewSecurities
Law, andtheLawonInvestment Funds. Please describe theprovisions oftherecent legislation
andother measures regulating securities trading, capital market development, restructuring and
corporate governance.
Answer:
Croatia provided theWTO Secretariat withthenewPrivatization Law, thenewSecurities Law,
andtheLawonInvestment Funds.
Question 14
TheCroatian Government intends tofoster creation ofprivate investment funds (PIF's)through
various means, including theprovision ofinitial minimum capital. Areforeign investors eligible
toreceive theinitial minimum capital tobeprovided bytheGovernment ofCroatia forthe
establishment ofPIF's?ArePIF'seligible toreceive frozen foreign exchange deposits forthe
purchase ofshares?WT/ACC/HRV/30
Page7
Answer:
TheCroatianGovernmentintendstofosterthecreationofPrivatizationInvestmentFunds(PIF's)
byloosening certain requirements contained intheLawonInvestment Funds, thatregulates "normal"
investment funds. TheCroatian Government doesbynomeans plantoprovide initial minimum capital
forestablishment ofPIF's.Quite tothecontrary itwillputforward strict initial capital requirements
tobeinvested incashbyPIF'swhen applying forregistration. PIFs'arespecialized investment funds
setuptocollect vouchers orcoupons andexchange those vouchers forshares inthecompanies that
willbeputupformassprivatization. Inthisrespect, PIF'swillnotbeallowed tocollect frozen foreign
currency deposits toexchange themintoshares. "Normal" Investment Funds, however, willbeallowed
tocollect these.
Question 15
According toquestion twoinWT/ACC/HRV/11 onprivatization, banks arenotprivatized within
theprivatization program oftheMinistry ofPrivatization ortheLawonPrivatization, butrather
bythefinancial founders ofthebanks indirectly privatizing their shares orbytheAgency for
Bank Rehabilitation andtheLaw ontheAgency forBank Rehabilitation (forthose banks in
financial troubles). Doanylawsorregulations condition orlimit theparticipation offoreign
investors intheprivatization ofbanks?
Answer:
There arenolawsorregulations thatcondition orlimittheparticipation offoreign investors
intheprivatization ofbanks.
Question 16
Alsoinquestion twoonprivatization, itisnoted thatMinistry ofHealth, inaccordance withthe
Statute ofConditions fortheLease ofMedical Facilitates forPrimary Medical Care (clinics) and
Hospitals, regulates theprivatization ofmedical services andactivities within hospitals andclinics,
butnottheinfrastructure andproperty. Please describe theconditions under which aclinic or
hospital maybeprivatized, whoapproves theprivatization, thestandard oftheequipment used,
theconditions adoctor must fulfil, inorder toparticipate intheprivatization. Dothelawor
applicable regulations provide foranyconditions orotherwise limit theparticipation offoreign
health careproviders intheprivatization ofthehospitals andclinics?
Answer:
1. Private ownership ispossible for:
(a) newly established hospitals, specialized hospitals, medical establishments, pharmacies and
institutions formedical careathome, according totheLawonMedical Care("Official Gazette",
No.1/97,finaldraft),LawonInstitutions("OfficialGazette",No.76/93),RegulationonPrivate
Practice ofMedical Workers ("Official Gazette" No.71/94);
(b) theprivatization ofprimary medical careisunder wayaccording totheRegulation ontheLease
ofthePartsofHealth Centres andMedical Establishments ("Official Gazette" 6/97and28/97)
2. Theprivatization ofhealth institutions isdoneaccording totheRegulations from 1(b). The
approval forestablishment andstarting activities ofprivate practice isgiven bytheminister ofhealth
according totheanswers 1(a)and1(b).WT/ACC/HRV/30
Page8
3. Thenecessary standards forestablishing aparticular private institution aredetermined bythe
Ministry ofHealth according tothecategory, orkindofmedical institution (Law onMedical Care,
"Official Gazette" 1/97, finaldraft)
4. Private medical institutions from 1(a)canbeestablished byanylegalandphysical person.
5(a) Thedoctor ofmedicine canestablish private practice (itdoesnotrefertoinstitutions) under
condition thathehasgraduated from theFaculty ofMedicine andhaspassed thestate
examination Forspecialist practices, hehastopassacorresponding specialist examination,
hehastobeaCroatian citizen (Law onMedical Care, "Official Gazette"" No.1/97andthe
Regulation onPrivate Practice ofMedical Workers ("Official Gazette", No.71/94);
(b) Thedoctor ofmedicine, Croatian citizen orforeign citizen, canbeafounder ofaprivate health
institution, inwhich hehastoemploy theother specialists according tothekindofahealth
institution. Afounder oranowner ofahealth institution neednotbeadoctor, butcanbeany
other physical orlegalperson.
6. Foreign nationals canbeemployed inprivate medical institutions under condition that:
- theirdiploma orcertificate hasbeenformally recognized bytheMinistry ofSciences orthe
Ministry ofEducation;
- theyhaveawork permit issued bytheMinistry ofLabour andSocial Welfare;
- residence permit issued bytheMinistry ofInterior;
- approval bytheMinistry ofHealth.
8. Dental technicians provide dental laboratory services inprivate practice orwithin medical
institution. Adental technician canfound aprivate practice under condition thatheisaCroatian citizen.
9. Dentists canestablish aprivate practices oraprivate institution under sameconditions asdoctors
ofmedicine.
10. Hospital nurses, dental technicians, physical therapist canprovide private practice according
totheRegulation onEstablishing ofPrivate Practice ("Official Gazette" No.71/94 under condition
thattheyareCroatian citizens.
11. Homeopathictreatments,paramedicineandacupuncturearenotincludedinthemedicalactivities
intheRepublic ofCroatia, andarenotunder competence oftheMinistry ofHealth.
II.1.(c) Current economic situation
Question 17
Question 4ofWT/ACC/HRV/11 andthereply tothatquestion indicate thatthere isaproblem
withthesizeoftheinformal sector ofCroatia(s economy. There alsohasbeensome press reporting
which indicates thataconsiderable quantity ofgoods hasbeenarriving inCroatia without payment
ofcustoms duties through theborder withtheBosnian Federation.
- Please confirm thatthecustoms territory ofCroatia conforms totheterritorial boundaries
ofCroatia, andthatitisCroatia(s intent toenforce WTO provisions andtheterms of
itsaccession package within these boundaries.WT/ACC/HRV/30
Page9
- Please provide, prior tothenextWorking Party meeting, areport onCroatian plans to
implement strict customs enforcement atitsborders prior toWTO accession.
WTO members areexpected tobeabletodefine their customs territory andtoapply WTO
provisions andtheterms oftheir accession packages attheir customs borders. Departures from
MFN treatment atthose borders should conform toWTO provisions, e.g,Article XXIV ofthe
GATT 1994 andArticle VoftheGATS.
Itiscritical totheprogress ofCroatia 'saccession thatitaddress theissue ofuniform application
ofitscustoms regime vis-a visother countries.
Answer:
TheCustoms territory oftheRepublic ofCroatia isdefined asthestateterritory oftheRepublic
ofCroatia, whose boundaries areidentical withtheterritorial frontiers oftheRepublic ofCroatia.
Atthestateandthecustoms frontier thecustoms control isorganized on12border crossings
withtheRepublic ofHungary, on60border crossings withtheRepublic ofSlovenia, 34border crossings
withtheRepublic Bosnia andHerzegovina. Customs control isalsodoneinnineborder attheCroatian
airports, 28border crossings attheseaandonthreeborder crossings atrivers. According totheDayton
Agreement thecustoms authorities oftheRepublic ofCroatia control alsothetraffic ontheCroatian
frontier withSRYugoslavia.
Allthelegalimport ofgoods aswellastheexport fromthecustoms territory oftheRepublic
ofCroatia isunder thecontrol oftheCustoms authorities oftheRepublic ofCroatia.
Asfortheplans about theimprovement ofthecustoms control weareintheprocess of
modernizing andarranging theborder crossings. Wearefitting outtheCustoms withthemostmodern
computer equipment andfacilities fordiscovering theprohibited goods traffic (especially withdrugs,
poisons andother kinds ofdangerous goods).
II.2 Basic Features ofForeign Trade oftheRepublic ofCroatia
II.2.(a) Foreign trade
Question 18
Would Croatia provide detailed trade statistics, onaproduct-by-product basis, forBosnia and
Herzegovina fortheyear1995?
Answer:
Requested dataishereby attached. (Available inAccessions Division, Room 1126, for
consultation.)WT/ACC/HRV/30
Page10
II.2.(c) Foreign debtoftheRepublic ofCroatia
Question 19
According toWT/ACC/HRV/5 (March 29,1996), theRepublic ofCroatia wasnegotiating with
theInternationalMonetaryFundforanextendedfundfacilitytosupporttheCroatiangovernment's
activities inthefields ofprivatization andenterprise andbanking sector restructuring.
- What isthecurrent status ofthenegotiations withtheIMFforanextended fundfacility?
- DidtheIMFagree toextend thefundfacility? Ifso,inwhat amount? DidtheIMFissue
areport onitsfindings?
Answer:
Themainobjectives ofthethreeyearprogram withtheIMF, aretobuildonourearlier success,
tosustain economic growth withlowinflation, tostrengthen theexternal position, toeffect major
reconstruction andstructural change, while maintaining internal andexternal macroeconomic balance,
andtoprovide anadequate social safety net.
Meeting theseobjectives willrequire restrained andbalanced macroeconomic policies supported
byanambitious program ofstructural measures.
Negotiations ontheExtended Fund Facility (EFF) havealready beenconcluded. Theamount
oftheloanaccounts for135percentofthequota oftheRepublic ofCroatia intheFund, i.e.
353million SDR inathree yearperiod (1997, 1998, 1999). EFFhasbeenapproved bytheBoard
ofExecutive Directors onMarch 12,1997, andthefirsttranche ofthecredit wasalready withdrawn.
InMay1997, thefirstreview oftheprogramme wasconcluded. Thesecond tranche ofthecredit will
bewithdrawn atthebeginning ofJuly.
Question 20
What isthecurrent status ofthethree World Bank loans, alsomentioned inWT/ACC/HRV/5,
thatwerebeing prepared withtheaimofreforming thepension system, fostering private enterprise
andreconstructing theinfrastructure? What isthecurrent status oftheglobal offering of
government bonds?
Answer:
ThePublic Sector Adjustment Loan(PSAL) intheamount ofUS$80 million aimed atreforming
thepension system, isstillunder negotiation. Theprecondition forconcluding theagreement onthis
loanistheadoption ofmeasures forreforming thepension system. Signing oftheagreement isnot
scheduled before theendof1997.
TheInvestment Recovery Loan intheamount ofUS$30 million.is intended tofoster private
enterprise, andisstillunder preparation.
On4December 1996, theEmergency Transport andMine Clearing Project (intheamount
ofUS$102 million) wassigned. Ratification tookplace on7February; theloanisnotyeteffective.WT/ACC/HRV/30
Page11
TheEnterpriseandFinancialStructuralAdjustmentLoan(EFSAL)amountingtoUS$160million
iscurrently innegotiation andthesigning isscheduled for10March, assoonasallthepreconditions
aremetbytheGovernment oftheRepublic ofCroatia.
Thecurrent status oftheglobal offering ofgovernment bonds is:
Euro-domestic Kuna issue:
Total Value: US$300,000,000.00
Maturity: 18December 1998 (twoyears)
Interest: 12.5percent, bi-annual calculations
Listed: Zagreb Stock Exchange andLuxembourg Stock Exchange
Leaders: Merril Lynch International andZagrebacka Banka
Eurodollar Bonds:
Total Value: US$300,000,000.00
Maturity: 27February 2002 (fiveyears)
Interest: 7percent, bi-annual calculations
Listed: Luxembourg Stock Exchange
Leaders: Merril Lynch International andUBSLimited
Question 21
Until August 1996 thesuccession process hadnotbeen finalized because theformer Yugoslav
Republics ofSerbia andMontenegro didnotrecognize thesuccession process. What isthecurrent
situation? (WT/ACC/HRV/11 Question 8)
Answer:
Unfortunately, fromSeptember 1996, thesituation withregard tothesuccession oftheformer
Yugoslaviahasbarelychanged.Inotherwords,althoughSirArthurWatts,SpecialNegotiatornominated
byPeace Implementing Council, triestoholdnegotiations withtheaimofconcluding aglobal agreement
onsuccession, itbecomes obvious thatthere isnoconsensus ofopinion onlessimportant matters,
tosaynothing about themore important ones.
Twoapproaches tosuccession arestillpresent: thefirstonewhich isbased onprinciples of
Vienna Convention andopinions ofBadinter Commission, which issupported byBosnia and
Herzegovina, Croatia, theFormer Yugoslav Republic ofMacedonia andSlovenia; andthesecond one,
which isbasically against succession andissupported bySerbia andMontenegro (SRYugoslavia).
Itisevident thatitisimpossible toreach anycompromise between those twoapproaches. Fewlast
plenary sessions ofallthecountries successors, thecountries cooperating, which accused SRYugoslavia
ofobstructing thenegotiations, asked ittoshow atleastitswillingness tocontinue thenegotiations.
SRYugoslavia wasasked, asasignofgood willtodivide therealestate holdinforeign countries,
andtoopenthefilesoftheformer National Bank ofYugoslavia andtheformer Ministry ofFinance.
Without that,itisimpossible tocontinue withthesuccession procedure. Although Mr.Watts isstill
trying topersuade SRYugoslavia toshow thewillingness, wedon(tthink thathewillsucceed indoing
it.Inthatway, thisattempt tonegotiate willalsofail.
Taking allthatintoaccount, itisobvious thatitisimpossible tomake aglobal agreement onthebasis
ofnegotiations orconsensus. Itisalsoobvious thatthesolution reached cannot besatisfactory and
fairforallthecountries successors. Therefore, itisuptotheinternational community tofindsolutions
tothecomplicated andimportant questions ofsuccession oftheformer Yugoslavia. Oneofthepossible
solutions would betheonethatBadinter Commission traced initsOpinion No.12.WT/ACC/HRV/30
Page12
III. INSTRUMENTS AND MEASURES OFTHE FOREIGN TRADE SYSTEM OFTHE
REPUBLIC OFCROATIA
III.1. LawonForeign Trade Operations
Question 22
Intheresponse toquestions 33-36 ofWT/ACC/HRV/11, Croatia promised toprovide anEnglish
language copy oftheCustoms Tariff LawtotheWTO Secretariat, assoon asitistranslated.
Atranslated copy ofthelawneeds tobeprovided attheearliest opportunity toallow Working
Party members toprepare adequately forthenextmeeting andtoformthebasisofbilateral market
access requests. What isthestatus ofthetranslation ofthisdocument?
Answer:
TheCroatian Customs Tariff entered intoforce on1July1996 andwassenttotheWTO in
English. Please refertodocument WT/ACC/HRV/16/Rev.1.
Question 23
InQuestion 33ofWT/ACC/HRV/11, Croatia states thattheCustoms Tariff Lawwillenter into
force on1July1996 andwillbecomprised ofcompound duties.
- Weencourage Croatia touseoneform oftariff protection, preferably ad-valorem tariffs.
Compound tariffs lacktransparency andmake itdifficult forexporters tocalculate the
final duty-owed. Please explain your rationale forusing compound tariffs.
- Ourcopy oftheCroatia tariff schedule onlyshows asingle dutyrate, notacompound
dutyrate. Hasthistariff schedule been superseded the1July1996 schedule?
Answer:
Itisnotknown tousthattheuseofcompound duties hasinpractice untiltoday made any
kinds ofdifficulties. Theprinciple oftheuseofsuchcustoms doesnotdiffer from theuseofsuch
instruments inthecountries oftheEuropean Union, Slovenia andmany others.
Question 24
InQuestion 35ofWT/ACC/HRV/11, Croatia wasasked toprovide theEnglish translation of
thenewCustoms Law. What isthecurrent legislative status oftheCustoms Law? CanCroatia
please provide anEnglish translation ofitstext?
Answer:
TheCustoms Lawisused, withsmall changes, since 1991. Atthemoment some changes are
being prepared inaccordance withtheCommunity Customs Code andtheWTO provisions oncustoms
valuation.WT/ACC/HRV/30
Page13
III.1.(c) Special forms offoreign trade operations
Question 25
Theanswer toquestion 15ofWT/ACC/HRV/11 (cross-border trade )indicates thattheprovision
contained inArticle 36oftheLaw onTrade isdesigned tocover anAgreement between the
Republic ofItalyandtheSRYugoslavia signed in1955inRome, inaccordance withtheLondon
Memorandum ofUnderstanding from 1954. Based onthisAgreement, trade withcertain goods
included inaspecial listanduptoalimited amount between theregions offormer Yugoslavia,
nowSlovenia, Croatia (municipalities ofBuje, Novigrad, Umag) andItaly (Trieste) canbe
performed without limitation ofquantities.
- Please identify theproducts included inthelistofgoods subject tothisagreement.
- Areitems exported from Croatia, inaccordance withtheterms ofthisAgreement, counted
against thetotalexport quotas fortheitems listed intheAttachment "Extent ofExport
Quotas in1996" (WT/ACC/HRV/23)?
- Does thisAgreement confer anytrade benefits other than exemption from import and
export quotas?
Answer:
According totheTrieste andGorizia Agreement of1955, theexchange oftrade isbased on
indication lists"A"(exports) and"B"(imports) andduty-free lists"C"(exports) and"D"(imports).
Theproducts being imported according totheduty-free list"D"aredutyfreeifdesignated forthe
usage intheborder area, theareadetermined byTrieste Agreement.
Theproducts included inthelistofproducts determined bythisAgreement areattached to
thisdocument. (Attachment 1)
According totheLawonTrade, theexport-import business inlocal border trade canbe
performed byacompany registered withtheCourt register forsuchactivities having itsseatinthe
border area. Export andimport ofproducts inlocalborder trade isperformed inconformity withthe
regulations ontheforms ofexports andimports. Theproducts exported fromtheRepublic ofCroatia
arepartofthetotalexport quota, forthose goods forwhich export quotas existinCroatia.
III.1.(d) Long-term production co-operation
Question 26
Inaccordance withthenewLawonTrade, Croatian companies mayenter intocompensation
transaction withforeign countries iftheyobtain approval from theMinistry ofEconomic Affairs.
What aretheconditions forobtaining suchanapproval? (WT/ACC/HRV/11 Question 16)
Answer:
Compensation dealscanbeconcluded byanylegalorphysical person registered intheRepublic
ofCroatia. Theonlycondition isthataCompensation dealisregistered withtheMinistry ofEconomy.
There arenospecial conditions forgetting theapproval which isaformal requirement whose main
purpose isthestatistical evidence (especially because ofthetradewiththeformer Yugoslavia countries).WT/ACC/HRV/30
Page14
TheStateneither participates inanywayintheconclusion ofcompensation deals, norconcludes
compensation deals initsname.
Alllawsandmeasures oftrade policy (customs duties, licences, etc.)apply totheexports or
imports ofthegoods exchanged incompensation deals, inthesome wayastothose goods which are
paidbyregular bankinstruments ininternational payment transactions.
III.1.(h) Newlegal requirements inoperations withforeign countries
Question 27
Inaccordance withthenewLawonTrade, theGovernment ofCroatia maydetermine import
quotas indifferent cases as"tooffset disturbances". Which situations aretaking intoaccount
under thisclassification andarethose situations justified under theprovisions ofArticles XI.2
andXXofGATT 94?(WT/ACC//HRV/11 Question 22)
Answer:
Theterm"tooffset disturbances" existed inthedrafttextoftheLawonTrade. Itdoesnot
existanymore intheLawonTrade, asapproved bytheParliament.
III.2.(a) Evolution ofcustoms tariff regulation
Question 28
According totheresponse toquestion 19ofWT/ACC/HRV/7, special customs protection measures
andseasonal tariffs maybeintroduced onlyonastrictly temporary basis andunder thecriteria
reached upon theconsultation between theGovernment ofCroatia, theChamber ofEconomy,
andother competent bodies.
- Please explain howthese rules forspecial customs protection measures andseasonal tariffs
canbeconsidered tobeinconformity withtherequirements ofArticle 5oftheAgreement
onAgriculture.
- Please describe thesteps thatCroatia willtaketomake these measures compatible with
WTO requirements prior toaccession.
According totheresponse toquestion 20ofWT/ACC/HRV/7, allagricultural products
(HSChapters 1,2,4,7,8,10,11,12,15,16,17,18,19,20,22,23and24)canbesubject to
seasonal tariffs.
- Please explain therationale forsubjecting processed agricultural products, specifically
items found inChapters 18,19and22,toseasonal tariffs, since theimportation ofthese
products isgenerally notaffected bythegrowing season? DidthenewCustoms Tariff
Lawabolish theuseofseasonal tariffs?
Answer:
With theintroduction ofCroatia ’snewCustoms Tariff on1July1996, Croatia abolished all
customs feesandduties other thanthecustoms duties contained initscustoms tariff. Wedonotplan
tointroduce anyother seasonal duties orcharges. Intheprocess ofestablishing "compound rates",
theRepublic ofCroatia hasestablished aspecific dutyforasubstantial amount ofproducts at0KunaWT/ACC/HRV/30
Page15
perquantity measure. Acertain number ofproducts willremain atHRK 0/kg, therestwillhavean
upper limitofspecific duties. These amounts havebeenpublished inAnnex AoftheCustoms Tariff
anditwillnotbepossible toincrease them afterwards. Thus, itisobvious thatthere arenoseasonal
tariffs which could bechanged depending ontheseason ofproduction.
Question 29
Could Croatia please provide awritten explanation ofitsseasonal duties given theapparent
inconsistencies totheresponses toquestions 34,41,44and136.Could Croatia confirm itsresponse
toquestion 136stating itwillabolish thesystem ofseasonal tariffs. Ifnot,could itplease indicate
inthedraft tariff offer towhich products arecovered andtheduration oftheseasonal tariffs.
Answer:
Please refertotheCroatian Initial offer onagriculture (WT/ACC/SPEC/HRV/2)
Question 30
Thenewcustoms tariffs allows atemporary increase ofthespecific element oftheratedepending
onseasonal requirements. Which categories ofproducts areaffected bythose increases?
(WT/ACC/HRV/11 Question 34)
Answer:
Theproducts forwhich aspecific dutyelement ofthecustoms dutydepending onseasonal
requirements willbeapplied arestated intheInitial Offer ofCroatia which hasbeensupplied toWTO
Secretariat.
Question 31
Itisrequested thatthedocument WT/ACC/HRV/7/Add. 1,of1April 1996, would beupdated
toinclude other products onwhich additional levies were introduced onthebasis ofthenew
Customs Tariff Law.
Answer:
SeeCroatia ’soffer onmarket access. (WT/ACC/SPEC/HRV/4)
Question 32
Bydefinition ofArticle 7thesocalled additional duties arevariable. Thisarticle alsoauthorizes
theuseofseasonal taxes without specifying thescope oftheproducts. IsCroatia prepared to
binditsduties andadditional taxes andeliminate seasonal taxes?
Answer:
TheRepublic ofCroatia hasalready submitted totheWTO secretariat itsinitial offerinwhich
alltheduties andseasonal taxes arebound andtherelevant seasons established.
Question 33
What isthecurrent average tariff rateforfinished industrial products (i.e.without intermediate
goods) andwhatistheaverage tariff rateforagricultural products including theimposed additional
levies?WT/ACC/HRV/30
Page16
Answer:
Wearenotabletoanswer question 11,about thevalue oftheaverage tariff rateforfinished
industrial products, because itisnotclear whatarefinished industrial products.
Wewould appreciate, inorder toanswer tothisquestion, ifwecould receive exact description
oftheindustrial products, tariff numbers orthedefinition offinished industrial products onthebasis
ofwhich wewould beabletodefine theproducts concerned.
Question 34
Bywhat typeofactwilltheGovernment implement itsmarket access commitments? Isany
parliamentary procedure envisioned?
Answer:
International agreements, withsome exemptions, aresubject toratification bytheParliament.
TheProtocol onAccession totheWTO being aninternational agreement isalsosubject toratification
bytheParliament.
Question 35
What criteria willbeadopted onthebasis ofArticle 8oftheCustoms Tariff Law, andwhether
itisintended thatthisarticle would have general applicability regardless ofspecial production
arrangements?
Answer:
Foreachimported product inwhich apartofCroatian goods hasbeenincluded, attherequest
ofimporter theprovisions ofArticle 8ontheLawofCustoms Tariff canbeutilized inthetotalamount
oftheexported Croatian goods.
III.2.(c) Import Charges andFees
Question 36
Does Croatia allow dutyfreeimports forexport production?
Answer:
Forimports, which werereported inadvance, destined fortheproduction ofgoods which are
tobeexported andwhich remain under customs control, theimport dutyisnotcharged.
Question 37
WillCroatia commit toeliminate anylegal basis fordutyandother refunds ofcharges paidby
Croatia 'sexporters?
Answer:
Please could youclarify thequestion?WT/ACC/HRV/30
Page17
III.2.(d) Taxation regime
Question38
Could Croatia provide anexplanation onthehighleveloftaxation existing incertain cases for
foreign products? Forexample, inthecaseofcement thetaxes collected forimports arethe
following (inaddition tothedutyrateof25percent): product inspection feeof5.1percent,
afeeof3.5percentforthevisitoftheinspector, 5.3percentforforwarding costs, afeeof1per
centforlabelling, afeeof2.6percent forquality control. Arethetaxlevels thesame ondomestic
cement? Ifnot,could Croatia provide anexplanation ofthedifference?
Answer:
Noadditional taxes (whatsoever) forcement arelevied onimports toCroatia inexcess ofthe
existing dutyrate(25percent).
Theonlycostswhich arearising areadministrative charges setinfixed amounts inKunas (not
inpercentages) tobepaidforimports intheRepublic ofCroatia forcement. Forexample, ifwetake
ashipment ofe.g.24tonsofcement, theadministrative charges arethefollowing:
Customs clearance fee 60Kunas
Quality control 170Kunas
Quality control based onsensor (physical)
examination, onattesting, i.e.examination at/with
appropriate expert institution upto10tons 50Kunas
Foreachnextton,i.e.foreachnextcommenced ton
itincreases by5.00Kunas, 14tonsx5Kunas 70Kunas
Total amount: 350Kunas (ca.DM100)
Thecharges forquality control apply aswelltodomestic products.
Question 39
Croatia applies anexcise taxdifferently withrespect todomestic andforeign products. When
will Croatia definitely bring theexisting legislation inconformity with Article III?
(WT/ACC/HRV/11 Question 48)
Answer:
Theexisting legislation onexcise taxes willbebrought intoconformity withArt.IIofGATT
on1January 1998.
Question 40
AccordingtoWT/ACC/HRV/20,theLawonSpecialTaxesonProducts(coffee,petroleumproducts,
beer, non-alcoholic drinks, alcohol, newimported carsandtobacco products) andtheLawon
Value Added Tax, were tohave taken effect on1January 1997.
- Please giveastatus report ontheimplementation oftheses revised taxes. Have anybeen
delayed? Ifso,what aretherevised plans fortheir implementation.WT/ACC/HRV/30
Page18
Answer:
TheLawonValue-Added Taxwassupposed toenterintoforce on1January 1997; however,
on6December 1996 anamendment totheLawwaspassed postponing theentry intoforce to
1January 1998.
Croatia plans tochange thevarious lawsonspecial taxasandtosubmit drafts totheParliament
by1January 1998. Thedrafts willabolish thedifference inratesapplied todomestic andimported
goods.
Question 41
Please provide translated copies ofthese lawstotheWorking Party forreview. Dothese laws
provide thesame coverage andapplied rates oftaxtodomestic andimported products?
Answer:
Please refertotheprevious answer.
Question 42
There isabriefdescription oftheprofit taxinWT/ACC/HRV/20. Thebasis ofthetaxassessment
istheamount ofthedifference between owncapital invested intheactivities oftheentrepreneurs
attheendandtheoutset oftheperiod forwhich thetaxisassessed, increased ordeducted pursuant
totheprovisions ofthelaw.
- Aredomestic andforeign entities treated alikeforpurposes oftheprofit tax?Please identify
anydifferences inthetreatment under thistaxlaw.
Answer:
Domestic andforeign entities aretreated alikeintheapplication oftheprofit tax.There isno
difference intreatment between domestic andforeign entities.
Question 43
Please identify what items areincluded as"capital invested intheactivities oftheentrepreneurs".
Please identify theitems thatareusedtoincrease ordeduct from thedifference inthecapital
invested prior toassessment ofthe25percentprofit taxrate.
Answer:
Please notethattheprofit taxrateinCroatia hasbeenchanged from25percentto35percent.
Thefollowing items arenotsubject totheprofit tax:
- financial results, which derive fromthepurchase orestablishment ofanother company, such
asdividends, purchase andsaleofshares, gains, losses, etc.;
- business expenses suchastravel allowances, travel expenses, vehicle usage (kilometres), and
amortization oflongtermassets. Ifthese expenses exceed thestipulated amounts provided
forintheStatute onProfit Tax,thenthedifference istaxable; andWT/ACC/HRV/30
Page19
- ifthetaxpayer isfound tobeextracting (forpersonal benefits) from theircompany, tobe
depositing orpaying amounts without receipts orfalsified receipts, and/or tobeinvesting in
other companies instead ofcollecting receivables (from companies which cannot payofftheir
receivables).
Protective interest of5percent(Articles 7and9)andtaxlosses carried overfrom previous
years arededucted from thetaxable base.
Equity usedtocalculate thetaxbaseandtheprotective interest includes thefollowing:
- reported equity;
- capital gains;
- retained profit;
- annual gain/loss;
- lawful reserves;
- reserves.
III.2.(e) Tariff preferences
Question 44
Presently, onlyapreferential trading agreement withtheRepublic ofBosnia andHerzegovina
forthegoods originating inthementioned state exists. Areallproducts concerned bythe
preferences orarethere some exemptions? (WT/ACC/HRV/11 Question 56)
Answer:
Allproducts (HSChapters 1-97)aresubject topreferences
III.2.(f) Non-Tariff measures applied toimports andexports
Question 45
Question 32ofWT/ACC/HRV/11 asked foracitation andlistofexisting legislation andregulations
thatprovide for"restrictions strictly confined toprotection ofdomestic production andmarket".
Additionally, Croatia wasasked toindicate what restrictions arecurrently inplace andexplain
howtheycanbejustified under theWTO. Neither ofthese questions appear tohave been
answered. Weseekaresponse.
Question 33ofWT/ACC/HRV/11 asked iftheGovernment ofCroatia contemplated apossible
needtouseprotective measures forproducts currently subject toquotas andlicensing requirements
intheagriculture, foodstuffs, iron,steel, chemical textile andmachinery industries. Thisquestion
doesnotappear tohave been answered. Croatia should report itsviews onthisissue.
Answer:
Inconformity withtheCustoms Tariff Lawwhich came intoforce asof1July1996, the
protection ofthedomestic production isprovided onlythrough custom duties determined bythisLaw.
Croatia doesnotapply anyimport quotas atthepresent time. Import licenses (thelistofall
products concerned isattached tothisdocument) apply totheusual products allowed byArticles XX
andXXIofGATT 94.WT/ACC/HRV/30
Page20
III.2.(f)(i) Quotas
Question 46
WillCroatia commit toeliminate allquantitative restrictions, import andexport?
Answer:
Allquantitative import restrictions havebeenalready eliminated in1996, aswellasthemajority
ofexport restrictions. Reminding export restrictions willbeeliminated gradually andparallel with
theaccession totheWTO.
Question 47
Though Croatia eliminated import quotas, itisstated intheTrade LawthatCroatia maytake
balance-of-payment measures andsafeguard measures. CanCroatia abide byArticle XIXofthe
GATT orwillitusedeveloping country Articles suchasArticle 18oftheGATT?
Answer:
Article 39oftheLawonTrade ofCroatia which isbased onArticle 18ofGATT provides
fortheuseofsafeguard measures. Astobalance-of-payments measures, Croatia may, ifandwhen
theneed arises, resort toArticle XIIorArticle XVIII, depending onthestate ofrecovery and
development ofthecountry (seealsoanswer toaprevious question).
Question 48
According totheanswer toquestion 43ofWT/ACC/HRV/3, Croatia willimplement, ona
step-by-step basis, depending onthespeed ofrecovery ofthenational economy, thewarandthe
demands Croatia willhavetomeetduring theprocess ofaccession toGATT andWTO, thegradual
abandonment oftheimport quota system.
- Does Croatia alsointend toabandon itsexport quota system, aspartoftheprocess of
WTO accession?
- Please list,bytariff lineitem, import andexport quotas stillinplace, asof1January 1997.
Please specify atimetable fortheelimination ofremaining import andexport quotas that
arenotconsistent withWTO provisions, andanitem-by-item justification forthose that
Croatia believes itshould retain.
Answer:
Theexport quota system shallbegradually abolished. There isaplanthatuntiltheendof1997
theexport quotas forcrude oilandgasareabolished. Following phase, atthebeginning of1998 will
bethechecking ofexport quotas onleather, paper waste andglass.
Asalready explained intheanswer toquestion 59ofWT/ACC/HRV/11 anylegalornatural
person dulyregistered intheRepublic ofCroatia, regardless ofwhether thefounders aredomestic
orforeign persons, mayapply forexport quotas.
Persons notbeing registered withtheCommercial Court intheRepublic ofCroatia cannot
directly apply forexport quotas, butcandoitthrough anexporter registered intheRepublic ofCroatia.WT/ACC/HRV/30
Page21
Export quotas arestillimposed oncrude oil,natural gas,crude timber, rawleather, glassand
newspaper waste (0.5ofthetotalnumber oftariff items )-thelistisattached tothisdocument.
Since Croatia abolished import quotas evenbefore joining theWTO, theGovernment ofthe
Republic ofCroatia isdetermined touseanyquotas inaccordance withWTO rules.
Question 49
According totheresponse toquestion 11ofWT/ACC/HRV/7, quotas maybeused toprevent
balanceofpaymentsdifficultiesandtoprotect"infantindustries",aswellastoimplementsafeguard
measures.
- Howwould Croatia justify theuseofquantitative restrictions toprotect "infant industries"
under WTO rules?
GATT Article XVIII addresses countries whose economies canonlysupport lowstandards ofliving
andareintheearly stages ofdevelopment. Invocation ofthese provisions byCroatia would be
inappropriate.
Croatia should expect touseArticle XIIoftheGATT 1994 intheevent ofbalance ofpayments
problems andhave recourse totheWTO Agreement onSafeguards forprotection ofindustries
injured byimports.
Answer:
Non-tariff measures applicable toexports andimports
TheLawonTrade enacted atthebeginning of1996, relying ontheWTO rulesandAgreements
ofUruguay round ofnegotiations (Safeguard Measures) limited thepossibility tointroduce quotas.
Wehavekeptthispossibility because ofthenecessity toreconstruct theindustries completely destroyed
bywarandbecause thetimeforreconstruction andbeginning ofproduction forthose industries is
needed.
Thisparticularly applies totheregions where theprocess ofintegration intotheCroatia isunder
way(Eastern Slavonia). Theproducers being active before thewar("Borovo", "Vuteks", "Belje",
etc.)are,asfarasweknow, either destroyed ortheirproduction isreduced, sothespecial measures
inorder tohelptheirreconstruction shallbenecessary (similar production plants donotexistinother
Croatian regions).
TheGovernment oftheRepublic ofCroatia isconscious ofthefactthatquotas asatradepolicy
measure andinthecases mentioned above isnotinconformity withArticle XVIII ofGATT. As
GATT94doesnotstipulateanyspecialmeasureincasewhenthehelpforthereconstructionofindustries
destroyed completely orpartly bywarisneeded, itseemed atthemoment when theLawonTrade
wasenacted thatiftheadditional protection oftheindustries fromthose regions shallbeneeded, and
which areatthesame timetheonlysuchindustries intheRepublic ofCroatia, thisprotection canbe
accomplished inthisway.
Intheevent ofbalance ofpayments problems, Croatia willuseeither Article XIIor
Article XVIII, depending onthestateofitsdevelopment atthetimewhen suchproblem should arise.WT/ACC/HRV/30
Page22
Question 50
According totheanswer toquestion 11ofWT/ACC/HRV/7, export quotas maybesettoprotect
non-renewable resources oftheRepublic ofCroatia.
- Istheuseofexport quotas authorized bytheLawonTrade foranyother purpose? What
criteria areapplied todetermine whether aresource isnon-renewable andinneed of
protection through theuseofexport quotas?
Answer:
Croatia maintains export quotas foralimited number ofproducts asatemporary trade policy
measure withtheaimofpreserving unrenewable natural resources fromexcessive exploitation orthe
resources oflonglasting renewal. Theintention istoprevent shortages ofthose products forpopulation
aswellasfordomestic industry.
Question 51
According totheresponse toquestion 59ofWT/ACC/HRV/11, anylegal ornatural person that
isdulyregistered intheRepublic ofCroatia, regardless ofwhether thefounders aredomestic
orforeign persons, mayapply forexport quotas.
- Areforeign natural persons andforeign legalentities eligible toregister forexport quotas?
- Please describe theregistration process forpersons seeking toobtain export quotas.
Aminimum of10percent oftheexport quotas aresetaside foradditional allocations intended
fornewproducers notanticipated intheregular allocation.
- What criteria doestheRepublic ofCroatia consider inallocating theremaining 90percent
oftheexport quotas?
Answer:
Foreign natural andlegal persons are,afterregistration withthecommercial court, eligible
toapply forexport quotas. Theregistration withthecommercial court isasimple requirement and
noparticular preconditions exist.
Theremaining 90percent ofanannual export quota areallocated onthebasisofthebestoffer
i.e.thehighest price.
Question 52
TheCroatian Government haddecided todismantle quantity restrictions onimports andexports
andhastherefore reduced thenumber ofproducts subject toquota. Infact, Croatia intended
toremove completely allimport quotas bythebeginning of1997. Hasthisbeen realized?
(WT/ACC/HRV/11 Question 59)
Answer:
Since 1July1996, Croatia doesnotapply anyimport restrictions.WT/ACC/HRV/30
Page23
Question 53
Onwhat grounds were thedifferent extent ofquotas introduced in1996? Could weobtain more
information foreachtariff heading listed? (WT/ACC/HRV/23)
Answer:
Theexport quota system shallbegradually abolished. There isaplanthatuntiltheendof1997
theexport quotas forcrude oilandgasareabolished.
Inthefollowing phase, atthebeginning of1998there willbeareview whether export quotas
onleather, paper waste andglass arestillnecessary.
Asalready explained intheanswer toquestion 59ofWT/ACC/HRV/11 anylegalornatural
person dulyregistered intheRepublic ofCroatia, regardless ofwhether thefounders aredomestic
orforeign persons, mayapply forexport quotas.
Persons notregistered withtheCommercial Court inCroatia cannot directly apply forexport
quotas, butcandoitthrough anexporter registered inCroatia. Different extent ofexport quotas are
allocated bytheMinistry ofEconomy through public tendering. Apublic tender must bepublished
inadaily newspaper atleasteight daysprior totheallocation ofquotas.
Export quotas arestillimposed oncrude oil,natural gas,crude timber, rawleather, glassand
newspaper waste (0.5ofthetotalnumber oftariff items )-thelistisattached tothisdocument.
Since Croatia abolished import quotas evenbefore joining theWTO, theGovernment ofthe
Republic ofCroatia isdetermined toharmonize anyfuture quota regime withWTO rules.
Question 54
WenoteinWT/ACC/HRV/23 thatCroatia hasimposed export quotas onseveral products that
would appear toberenewable, including livebovine animals; hides, skins andleather from cattle,
sheep andhorses; unworked coral andshells; andforest products andpaper.
- How canexport restrictions onthese products bejustified under these circumstances?
- HasCroatia restricted internal production inproportion toitsexport restrictions?
- What steps, ifany,isCroatia taking toremove these restrictions?
Answer:
Export quotas aredetermined forwood. Thereason isthatduring theperiod offouryears
until1995, 30percentofCroatian woods could notusedfortheneeds ofwood-processing industry.
Atthesame time, alotofprocessing capacities were destroyed (estimated wardamage intimber
processing plants amounts toUS$73 million). Stillnowabout 8million m3pulpofwood isnotavailable
forexploitation asitislocated inEastern Slavonia.
Thesituation issimilar inleather industry where thelevelofproduction decreased asadirect
result ofahugedecrease incattle breeding amounting to60percentinlastfiveyears. Thisresulted
inthescarce supply oftanneries (40ofthem )which evenbrought them tobankruptcy.WT/ACC/HRV/30
Page24
Thedecline inlivecattle stock istheconsequence ofwar.Themeasures fortherenewal of
livestock arebeing implemented. Thisisthereason forkeeping thismeasure which isofatemporary
character.
Unworked corals andshells arethenatural wealth oftheAdriatic seawhich byanexcessive
exploitation would bedevastated, nomatter whether domestic consumption orexports areconcerned.
Ifafteraccession ofCroatia totheWTO, itwould benecessary tocontrol theexportation of
those products, Croatia willconsider thepossibility toimplement other trade policy measures in
conformity withtheWTO rulesinorder toprovide thenecessary rawmaterials forthedomestic market.
Remaining export quotas willbeabolished gradually depending ontheconsolidation inthe
production, parallel withtheaccession ofCroatia toWTO.
II.2(f)(ii) Licences
Question 55
Whyareimport licenses compulsory forspecific products aspostal stamps? (WT/ACC/HRV/25)
Answer:
Thelicense regime concerns stamps ofnumismatic value, nottothepostal stamps usedfor
commercial purposes.
Question 56
Please provide afulllistofproducts (with relevant HSCodes) subject toimport licensing. For
eachproduct, please explain thereason forrequiring animport licence. Foreachproduct, please
listthecriteria which areusedindetermining whether ornottogrant animport license.
Answer:
Please findattached therequired listofproducts subject toimport licensing. (Available in
Accessions Division, Room 1126, forconsultation.)
Fortheimport ofproducts subject tolicensing, itisnecessary thatthecompany hassubmitted
adulyrequest andtheevidence ofthepayment oftheadministration fee.Inaddition totheabove
mentioned general conditions, there arealsosome specific conditions asfollows:
1. According totheprovisions oftheLawonTrading withMedicaments andregulations passed
onthebasisofthatLaw, onlythemedicaments registered intheRepublic ofCroatia canbeimported.
Theimport ofmedicaments canbeperformed onlybylegalpersons whohavereceived thedecision
issued bytheMinistry ofHealth which enables them toperform wholesale trade ofmedicaments.
2. NuclearmaterialcanbeimportedtotheRepublicofCroatiaaccordingtotheAgreementbetween
theRepublic ofCroatia andIAEA fortheApplication ofSafeguards inConnection withtheTreaty
ontheNon-Proliferation onNuclear Weapons (NPT)
3. Import licences formeasurements
Measurements usedforlegalpurpose (Official Gazette 93/94, page2615) havetobetypetested
bytheInstitute forMeasurements, thatmeans thatitisnecessary tohave the"Decision ontypeWT/ACC/HRV/30
Page25
authorization ofthemeasurement". Onthecontrary, theimport licence forsuchmeasurements cannot
bereceived.
Import ofmeasurements thatarenotusedforlegalpurposes ispossible eveniftheydon’thave
the"Decision ontypeauthorization ofmeasurement".
4. AmmunitionandExplosivesimportandexportlicences(Tradingcompanyregistration;Decision
bytheMinistry oftheInterior todobusiness intrading withammunition andexplosives).
5. Import andexport licenses forsubstances which damage theozone layer(Opinion bytheState
Institute forEnvironment Protection, astheimplementation ofMontreal Convention isunder their
competence).
6. Import andexport licences forradioactive elements (Opinion byEnergy andMining Division).
7. Import licence fortractors over50-100 kW,older than5years:
- forphysical persons: Certificate onLandRevenue, Declaration confirmed byapublic
notary thatthetractor willbeusedforcultivation ofland, andthatthevehicle isin
working order.
- forlegalpersons: Document proving thatthetrading company willensure servicing
andspare parts inguarantee period.
8. Tubes andhollow drillbarsimport license (ACommission forissuance oflicences ofcertain
products meets when necessary andconsiders therequests received).
Question 57
WT/ACC/HRV/25 reports onCroatia 'slicensing system. Forwhat reasons doesCroatia apply
mandatory import licensing forirontubes andbars, combine harvesters forgrain andcorn, engine
power above 45to167kW,andtractors older thanfiveyears? Please describe howthelicenses
areapplied and,asappropriate, giveWTO justification fortherestriction.
What Ministries areinvolved ingranting authorization forimport licenses? What discretion do
theyhave toreject license applications? Must thereason fortherejection becommunicated to
therequesting entity?
Does Croatia levyborder crossing feesonpassengers orfreight conveyed byair,seaandland?
Ifso,please describe thenature andamount oftheborder crossing fees. Please describe any
differences intheapplication ofthese feestoforeign anddomestic passengers andfreight.
Answer:
Import licenses forirontubes andbarswereintroduced asatemporary measure forthepurpose
ofmonitoring theirimportation. These products hadbeenpreviously subject toimport quotas for
45years, andasaninterim measure, import licensing wasintroduced. Weexpect thislicensing
requirement tobeabolished intheforeseeable future.
Concerning tractors older thanfiveyears ithappens thatthetractors imported toCroatia are
sometimes ten,fifteen ormoreyears old,soitwasnecessary tomonitor theirimports forenvironmental
purposes andtheprotection ofusers.WT/ACC/HRV/30
Page26
BytheDecision adopted bytheGovernment oftheRepublic ofCroatia harvesters arenotsubject
tolicensing anymore.
Inaccordance withtheLawonTrade, inorder toimplement international agreements, ensure
statesecurity, protect thelives andhealth ofthepopulation, animals andvegetation, protect the
environment andexecute control ofexport andimport ofworks ofartandcertain precious metals,
thetrade ofcertain goods issubject tolicensing.
Theministries authorized toissue licenses are:Ministry ofEconomy, Ministry ofHealth,
Ministry ofAgriculture andForestry, Ministry ofMaritime Affairs, Transport andTelecommunications
andStateOffice forStandardization andMeteorology, Ministry ofDefense, Ministry ofInterior and
Ministry ofCulture.
Every person carrying outexport-import business cansubmit aclaim fortheallocation ofthe
import license forirontubes andtractors older thanfiveyears ofunlimited quantity, mark orcountry
oforigin according totheDecision onProducts Imported orExported onBasis ofLicense. The
Commission oftheMinistry ofEconomy isauthorized toissuelicenses. Itconsists ofthree members
anditissued licenses without anylimitation, starting fromthepossibility ofdistribution ofthose tubes
intheRepublic ofCroatia, andasfarastractors areconcerned, thetrader hastoensure repair and
maintenance servicing andspare parts, andithastobeevident from theimport documentation that
theproduct willbesafefortheendusers.
Anapplicant isdenied theimport license ifhedoesnotmeet thestandard criteria forthe
transportation ofcertain goods ortheconditions stipulated ininternational conventions forspecific
goods subject tolicensing.
There arenofurther reasons fordenial ofimport license.
Thereason fordenial ofthelicense hastobecommunicated totheapplicant.
Ifanapplicant isdenied theimport license byanadministrative body, heisentitled tobring
anadministrative lawsuit withtheAdministrative Court oftheRepublic ofCroatia.
Question 58
Would Croatia justify licensing ofimports andexports ofspecific products andprovide detailed
information onthecriteria applied (forexample: ironpipes andtubes, tractors, paper and
paperboard products)?
Answer:
Import licences forirontubes andbarsareintroduced asatemporary measure forthepurpose
ofmonitoring theimport ofthose products. Theother reason isthenecessity ofcontrol overimport
prices andquantities asthestatistical dataarenotreliable.
Also, inconnection withtractors older thanfiveyears ithappens thatthetractors imported
toCroatia aresometimes 10,15ormore years old,soitwasnecessary tomonitor theirimports for
environmental purposes andtheprotection ofusers .
Harvesters arenotsubject tolicensing bytheDecision adopted bytheGovernment ofthe
Republic ofCroatia.WT/ACC/HRV/30
Page27
Inaccordance withtheLawonTrade, inorder toimplement international agreements, ensure
Statesecurity, protect livesandhealth ofpopulation, animals andvegetation, protect theenvironment
andexecute control ofexport andimport ofworks ofartandcertain precious metals, trading with
certain goods issubject tolicensing.
Theministriesauthorizedtoissuelicencesare:theMinistryofEconomy,theMinistryofHealth,
Ministry ofAgriculture andForestry, Ministry ofMaritime Affairs, Transport andTelecommunications
andStateOffice forStandardization andMeteorology, Ministry ofDefence, Ministry ofInterior and
Ministry ofCulture. Every person carrying outexport-import business cansubmit aclaim forthe
allocation oftheimport license forirontubes andtractors older thanfiveyears ofunlimited quantity,
mark orcountry oforigin according totheDecision onProducts Imported orExported onBasis of
Licence. TheCommission oftheMinistry ofEconomy isauthorized toissue licences. Itconsists
ofthreemembersanditissuedlicenceswithoutanylimitation,startingfromthepossibilityofdistribution
ofthose tubes intheRepublic ofCroatia, andasfarastractors areconcerned, thetrader hastoensure
repair andmaintenance servicing andspare parts, andithastobeevident fromtheimport documentation
thattheproduct willbesafefortheendusers.
Anapplicant isdenied theimport licence ifhedoesnotmeet thestandard criteria forthe
transportation ofcertain goods ortheconditions stipulated ininternational conventions forspecific
goods subject tolicensing.
There arenofurther reasons fordenial ofanimport licence.
Thereason fordenial ofthelicence hastobecommunicated totheapplicant.
Ifanapplicant isdenied animport licence byanadministrative body, heisentitled tomake
anadministrative lawsuit withtheAdministrative Court oftheRepublic ofCroatia.
III.2.(g) Customs Valuation
Question 59
Weseek Croatia ’sconfirmation thatitwillfully implement theWTO Agreement onthe
Implementation ofArticle VIIoftheGATT 1994 from thedateofaccession, andthatallthe
provisions oftheAgreement, including theInterpretative Notes, are,orwillbe,incorporated
inCroatian lawandregulation prior tothattime.
Werequest thatCroatia directly address thispoint byproposing aplanforfullimplementation
asprovided forabove.
Answer:
ItisCroatia ’sintention toimplement theWTO Agreement ontheImplementation ofArticle
VIIoftheGATT 1994 andadjust theCustoms Law. However, anextended implementation period
should benecessary inorder todoso,duetothetimeconsuming legal procedure. Croatia would
appreciate anypossible technical assistance inchanging itslegislation related tocustoms valuation.WT/ACC/HRV/30
Page28
Question 60
Weappreciate theinformation provided onthecurrent Customs Act,butwerequire afulland
translated copy tocomplete ourreview. Inaddition, ifarevised customs valuation regime has
been proposed inthedraft Customs Law, wewould appreciate receiving acopy ofthisassoon
aspossible.
Answer:
TheCroatian Customs Law(inEnglish) wastransmitted totheWTO on29August 1995
(appendix 10toDoc. HRV 4).Article 36-48,241, 242,244,247relate tocustoms valuation.
These provisions havetobereadtogether withtheStatute ontheConditions andMethod of
Determining Tariff Bases, submitted (inEnglish) totheWTO asappendix 30todocument
WT/ACC/HRV/4/Add.1 on21March 1996.
Question 61
Under theWTO Customs Valuation Agreement, theseller isnotprohibited from benefiting either
directly orindirectly from suchproceeds, solongasanappropriate adjustment canbemade in
accordance withArticle 8oftheAgreement. Articles 36(5),41(10)and42oftheCustoms Act
address thisissue, butarecontradictory intheir treatment ofit.
- Article 36(5)appears tocontradict Articles 41(10)and42.Does Article 36(5)prohibit
theaccrual, whether directly orindirectly, totheseller ofanyproceeds ofsubsequent
resale, disposal, oruseoftheimported merchandise?
- Conversely, doArticles 41(10)and42permit theaccrual ofsuchproceeds providing they
aretaken intoaccount indetermining thevalue ofthemerchandise?
Answer:
UnderCroatianlawandpractice,thesellerisnotprohibitedfrombenefitingdirectlyorindirectly
from proceeds ofanysubsequent resale, disposal oruseofthegoods bythebuyer, provided an
appropriate adjustment canbemade. Thisisexpressly spelled outinArticle 8oftheabove Statute
which provides that"Thecontract priceshallbeaccepted asthetariffbaseevenif....".Articles 41.1.10
and42oftheCustoms Lawcorrespond totheseprovisions. Weagree thatthelanguage ofArticle 36.3.5
oftheCustoms Lawdoesnotconform tothese provisions; Therefore, inarevision orinanewlaw
onvaluation, wewilladdthewords" unless anappropriate adjustment canbemake inaccordance with
Article 41.1.10 (oftheCustoms law)", together withthetwocorrections indicated above inArticle 8
oftheStatute.
Question 62
Themeaning ofArticle 37isunclear. What ismeant bytheterm "free Croatian border"?
Answer:
Article 37oftheCustoms Lawstipulates theclause referring toDAF (Delivered atFrontier)
according totherules ofINCOTERMS '90bytheInternational Chamber ofCommerce.WT/ACC/HRV/30
Page29
Theterm"freeCroatian border" means thatthecustoms baseincludes allexpenses (insurance,
freight ,etc.)forthegoods tobeexported which areincurred untilthepoint ofexitfrom Croatia.
Question 63
IsArticle 38oftheCustoms Actconsistent withArticle 5andArticle 6oftheCustoms Valuation
Agreement, forpurposes ofvaluing sales between related persons?
Answer:
Thisquestion isunclear: Article 38oftheCustoms Lawdeals withvaluation ofidentical and
similar goods (corresponding toArticle 2and3oftheValuation Code), andnotwithArticle 6ofthe
Code (ie.deductive andcomputed values ).
Question 64
Article 39(2)appears toallow animporter tochoose whether thegoods should beappraised under
thetransaction value ofidentical orsimilar, deductive orcomputed value. ThisArticle should
becorrected toconform toArticle 4ofthisAgreement which permits theoptional reversal in
theorder ofapplication ofonlyArticles 5and6oftheAgreement.
Answer:
Article 39.2oftheCustoms Actapplies onlytotheoptional reversal ofthesequence between
deductive andcomputed methods contained inthefirstparagraph ofthesame article andnottothe
preceding provisions ofArticles 36and38.Thisismade clear bythewords "irrespective ofthe
established sequence outlined inparagraph 1ofthisArticle".
Question 65
Theadditions tothe"customs base", meaning transaction value, asoutlined inArticle 41should
beclarified andsupplemented tomore closely align withArticle 8oftheCode, forexample, as
itiscurrently written, Article 41(3)would include under hecustoms basean"agent ’scommission",
which commission could beinterpreted toinclude bothselling andbuying commissions. Under
Article 8oftheAgreement, "buying commissions" areexpressly excluded from transaction cost.
Answer:
ThetextofArticle 41oftheCustoms Actwillbemore closely aligned toArticle 8ofthe
Valuation Code. Itshould benoted thatArticle 22.2 oftheabove Statute provides thatagents
commissions shallnotbeincluded inthecustoms value.
Question 66
Theresponse toquestion 15ofWT/ACC/HRV/11 (relating tospecial forms offoreign trade
operations) describes several "special forms offoreign trade operations" thatareprovided for
bythenewLawonTrade, including counter trade, re-export, cross border trade, anddistribution
ofgoods from consignment warehouses.
- How doestheGovernment ofCroatia value thistrade forpurposes ofassessing customs
duties? Arethecustom valuation procedures forthespecial forms offoreign tradeWT/ACC/HRV/30
Page30
operations inconformity withtherequirements ofArticle 8oftheWTO Customs Valuation
Agreement?
Answer:
Thecustom valuation procedures forthespecial forms offoreign trade operations arein
conformity withtherequirements ofArticle 8oftheWTO Customs Valuation Agreement.
These operations aresubject tothesame valuation rules asnormal imports. Werepeat that
there isnogovernment element involved inthese transactions.
Question 67
InWT/ACC/HRV/19, younotethat"some" oftheInterpretative Notes oftheWTO Customs
Valuation Agreement areincluded intheprovisions oftheStatute. Please identify those
interpretative notes which notincluded inthestatute. Does Croatia intend tomodify theCustoms
Actorapplicable regulatory provisions toincorporate alltheinterpretative notes totheCustoms
Valuation Agreement?
Answer:
Atthemoment, wearepreparing thecorrection oftheCustoms LawsothattheLawandits
regulations willbeinconformity withArticle VIIoftheGATT andwiththeAgreement onthe
Implementation ontheArticle VIIoftheGATT 1994.
Theabove mentioned Statute already contains anumber ofInterpretative Notes totheValuation
Code, e.g.Articles 5-7,12.2, 13.2. Arevision ofthepresent lawonvaluation oranewlawwill
contain theoperative Interpretative Notes oftheCode.
Question 68
Prohibitions found inArticle 7.2.oftheWTO Agreement onImplementation ofArticle VIIof
theGATT 1994aredelineated inArticle 40oftheCustoms ActoftheRepublic ofCroatia except
those from Article 7.2(b)and(f).Why arethose prohibitions notincluded? Does Croatia intend
tomodify those provisions? (WT/ACC/HRV/19)
Answer:
Therevised Customs LawofCroatia willinclude allprohibitions contained inArt.7.2.of
theWTO Customs Valuation Agreement.
III.2.(h) Rules oforigin
Question 69
When willCroatia passregulations onrules oforigin which willdefine astowhat isconsidered
tobegoods ofCroatian origin andthemanner ofissuing attestations andcertifying the
documentation enclosed with thegoods inexport andimport? What additional criteria on
establishment willbeapplied tocertain goods astextile fabrics? (WT/ACC/HRV/24)WT/ACC/HRV/30
Page31
Answer:
Atthemoment, newregulations onrules oforigin areinpreparation. Theregulations and
experience ofother WTO Members, aswellastheachievements andwork ontheharmonization of
rules oforigin within theWorld Customs Organization arebeing carefully examined.
Wearenotableyettoanswer which criteria willbeapplied fortextile products. However,
Croatia willaccept therules applied bymostofEuropean countries indefining theruleoforigin in
general, which shallprobably apply tothetextile products aswell.
Question 70
Article 26oftheLawonTrade (Annex 8)provides that, ifseveral countries were involved in
theproduction, thecountry inwhich the"last essential changes were made tothegoods" isthe
country oforigin. Please define theterm "lastessential changes" asusedintheArticle 28rules
oforiginprovision.Pleaseidentifyanyobjectivecriteriawhichisconsideredindeterminingwhether
ornotan"essential change" hastaken place.
Answer:
Inaccordance withthepresent regulation lastessential changes asusedinrules oforigin, is
defined asthechange ofthetariffheading ofthefinished products related tothenon-originating materials
usedintheirproduction, orasthevalue ofthenon-originating materials doesnotexceed 50percent
ofthetotalvalue ofthefinished products. Oneortheother criterion issufficient inconferring the
origin status ofaproduct.
Question 71
Article 26oftheLawonTrade alsoprovides thattherules oforigin must beconsistent withthe
relevant international agreements. Please describe thestatus ofCroatia ’sefforts toadopt inlaw
therules oforigin thatarebeing developed intheWTO.
Answer:
Article 26oftheLawonTrade regulates basicprinciples ofrulesoforigin, inconformity with
theWTO Agreement onRules ofOrigin.
Detailed description ofrules oforigin including detailed explanations, aswellascriteria for
determining "essential change" onaproduct shallberegulated bytheDecision oftheGovernment
oftheRepublic ofCroatia onRules onOrigin. ThedraftofthisDecision isbeing worked onnow.
Newlegislation onrules oforigin willbeadopted during 1997.
III.2.(j) Standards andcertification
Question 72
Itisrequested thatCroatia justify mandatory border inspections ofgoods bythemarket inspector,
particularly regarding furniture andtextiles.WT/ACC/HRV/30
Page32
Answer
Mandatory quality inspection attheborder (including forfurniture andtextiles) isrequired
inorder toprevent deceptive practices ortoprotect human health andsafety, animal orplant lifeand
health, ortheenvironment. Wewishtounderline thatthenumber ofproducts subject toquality control
hasrecently beenreduced from88to64items (seeattached list,andthatfurther reductions arelikely
totakeplace intheforeseeable future).
Question 73
CanCroatia confirm thatthesame regime ofborder inspections applies todomestic producers
before putting finished products onthemarket, since thesame rules apply?
Answer
Weconfirm thattherules onquality control apply equally todomestically produced andto
imported goods.
Question 74
With regard totheimport andexport quality control, wewould liketoknow thereasons forthe
control oneachoftheitems. According totheTBTAgreement, Article 2.2,technical regulations
shallnotbemore trade restrictive thannecessary tofulfil alegitimate objective suchasnational
security, prevention ofdeceptive practices, protection ofhuman health orsafety, animal orplant
lifeortheenvironment. TheTBTAgreement, Article 2.4,states thatwhere international standards
exist, theyshould beused. CanCroatia abide bythese rules?
Answer:
Mandatory quality inspection attheborder (including forfurniture andtextiles) isrequired
inorder toprevent deceptive practices ortoprotect human health andsafety, animal orplant lifeand
health, ortheenvironment. Wewishtounderline thatthenumber ofproducts subject toquality control
hasrecently beenreduced from88to64items (seeattached list),andthatfurther reductions arelikely
totakeplace intheforeseeable future.
Thestandards applicable totake64products (imported ordomestic) stillsubject toquality
control arecontained intherespective government regulations (seeAnnex). Asexplained before, these
aremostly former Yugoslav standards, ofwhich about 30percenthadbeenprepared byadopting
international standards andtherestonthebasis ofnational standards ofother countries. Inaddition,
themore recently adopted regulations (e.g.product items 11,20,23,30-33, 35,58,are,andnew
standards willbebased on,international orregional/European standards.
According totheprovisions oftheLawonStandardization thebasic requirements aproduct
mustsatisfy aretosecure protection oflifeandhealth ofpeople, environment protection, andconsumer
protection.
Onthedomestic market themarket inspection controls thequality ofalltheproducts forwhich
there areregulations onbasic requirements. Forimported goods themarket inspection controls the
products fromthegreatnumber ofimporters ortheproducts which areimported byauthorized ornatural
persons forthepurpose ofperforming registered activities (production ofmaterials, rawmaterials,
spare parts) arenotsubject toproduct quality control.
Thelawenvisages theacceptance ofinternational standards, European standards orstandards
ofother countries performed bytheNational Institute forStandards andMeasurements.WT/ACC/HRV/30
Page33
Preliminary testsbyauthorized institutions areconducted forproducts whose compliance with
basic regulations canbeverified onlybylaboratory tests.
TheStandardization Actforesees recognition ofdocuments issued abroad, which isdoneunder
certain terms bytheInstitute.
When thisinstitute isinoperation, quality control willdetermine whether acertain product
hasbeentested under required conditions inthecountry ofproduction, sothattestsinaCroatian
institution willnotbenecessary.
Question 75
Croatia indicated attheSecond Working Party thatitwasinprocess ofreducing thelistofgoods
subject toquality control (currently 88items aslisted inpages 10-12 ofWT/ACC/HRV/22).
- Please indicate which ofthese 88items remain subject toquality control?
- Please indicate whether anynewproduct types have been included inthelistofgoods
subject toquality control?
Answer:
Thenumber ofproducts subject toquality control hasrecently beenreduced from 88to64
items. Alistofthese items andalistoftherelevant government regulations isgiven below. Afurther
reduction ofthenumber ofproducts subject toquality control islikely totakeplace intheforeseeable
future. Nonewproduct havebeenincluded inthislist.
Thelistofproducts subject toimport control nolonger contains products forwhich quality
standards were regulated withcompulsory application.
IMPORTED PRODUCTS SUBJECT TOPRODUCT QUALITY CONTROL AND
REGULATIONS FOR THE CONTROL OFTHESE PRODUCTS
1. Meat andMeat Products
Theregulation onthequality ofmeatofbeefcattle andvenison. (Narodne Novine, No.53/91);
Theregulation onthequality ofmeatproducts. (Official Gazette, No.53/91);
Theregulation onthequality ofporkanditscategorization. (Official Gazette No.53/91).
2. Fish, Cray-Fish, Mussels, Sea-Urchins, Frogs, Turtles, Snails, andRelated Products
Theregulation onthequality offish,cray-fish, mussels, sea-urchins, frogs, turtles, snail, and
related products. (Official Gazette, No.53/91).
3. Milk, Dairy Products, andPureCultures
Theregulation onthequality ofmilk, dairy products, andpurecultures. (Official Gazette,
No.53/91).WT/ACC/HRV/30
Page34
4. Ice-Cream, Ice-Cream Products, andFrozen Desserts
Theregulation onthequality ofmilk, dairy products, andpurecultures. (Official Gazette,
No.53/91.
5. Eggs andEggProducts
Theregulation onthequality ofeggsandeggproducts. (Official Gazette, No.53/91).
6. Fruit, Vegetables, Mushrooms andRelated Products
Theregulation ofthequality offruit, vegetables, mushrooms andrelated products. (Official
Gazette, No.53/91).
7. Coffee, Coffee Products, andProducts Made ofCoffee Substitutes
Theregulation ofthequality ofcoffee, coffee products, andproducts made ofcoffee substitutes.
(Official Gazette, No.53/91).
8. Teas
Theregulation ofthequality ofcoffee, coffee products, andproducts made ofcoffee substitutes,
tea,condiments, leaven, baking powder, pudding powder andlow-caloric products. (Official Gazette,
No.53/91).
9. Condiments, Condiment Extracts, andCondiment Mixtures
Theregulation ofthequality ofcondiments, condiments extracts, andcondiment mixtures.
(Official Gazette, No.53/91).
10. Mustard
Theregulation ofthequality ofcoffee, coffee products, andproducts made ofcoffee substitutes,
tea,condiments, leaven, baking powder, pudding powder andlow-caloric products. (Official Gazette,
No.53/91).
11. Common SaltandBrining Salt
Theregulation ofthequality ofsaltusedasfood. (Official Gazette, No.53/91).
12. Soups, Soup Concentrates, Sauce Concentrates andFood Supplements
Theregulation ofthequality ofsoups, soup concentrates, sauce concentrates andfood
supplements. (Official Gazette, No.53/91).
13. Leaven, Baking Powder, Pudding Powder
Theregulation ofthequality ofleaven. (Official Gazette, No.53/91);
Theregulation ofthequality ofcoffee, coffee products, andproducts made ofcoffee substitutes,
tea,condiments, leaven, baking powder, pudding powder andlow-caloric products. (Official Gazette,
No.53/91).WT/ACC/HRV/30
Page35
14. Additives Used inProduction ofFood
Theregulation ofthequality ofadditives forfoodproducts.
15. Gain, Baking Products, Pasta, andDeep Frozen Pasta
Theregulation ofthequality ofgrain, baking products, pasta, anddeepfrozen pasta. (Official
Gazette, No.53/91).
16. Biscuits andBiscuit-Related Products
Theregulation ofthequality ofbiscuits andbiscuit-related products. Official Gazette,
No.53/91).
17. Food OilsandVegetable Fats, Margarine, Mayonnaise andOther Related Products
Theregulation ofthequality ofoilsandvegetable fats,margarine, mayonnaise andotherrelated
products. (Official Gazette, No.53/91);
Theregulation ofthequality ofoliveoilandblended oliveoil.(Official Gazette, No.53/91).
18. Sugar andRelated Products
Theregulation ofthequality ofoilsandvegetable fats,margarine, mayonnaise, sugar, honey
andsugar-related products. (Official Gazette, No.53/91).
19. Honey andOther Apiary Products
Theregulation ofthequality ofhoney andother apiary products andregulations onmethods
ofquality control ofhoney andother apiary products. (Official Gazette, No.53/91).
20. Cacao Products, Creams, Candies andRelated Products
Theregulation ofthequality ofcacao products, chocolate-related products, candies. (Official
Gazette, No.53/91).
21. Alcoholic Beverages
Theregulation ofthequality ofalcoholic beverages. (Official Gazette, No.53/91).
22. Beer
Theregulation ofthequality ofalcoholic andnon-alcoholic beverages. (Official Gazette,
No.53/91).
23. Non-Alcoholic Beverages
Theregulation ofthequality ofnon-alcoholic beverages andsoda-water. (Official Gazette,
No.23/97).WT/ACC/HRV/30
Page36
24. Vinegar andAcetic Acid
Theregulation ofthequality ofvinegar anddiluted acetic acid. (Official Gazette, No53/91).
25. Products RichinProtein andProducts Made ofBland ofProteins, Products forFood Industry
Theregulation ofthequality ofproducts richinprotein andproducts made ofbland ofproteins,
products forfoodindustry. (Official Gazette, No53/91).
26. Fodder andPet-Food
Theregulation ofthequality offodder. (Official Gazette, No53/91).
27. Fresh Tobacco andCutTobacco
LawonTobacco. (Official Gazette, No.53/91).
28. Electrical Appliances forHousehold andSimilar Uses
Regulation ondetermining electrical appliances forthehousehold which canenter themarket
onlyifsupplied withacertificate ofguarantee, technical instructions, theguaranteed duration ofworking
lifeaswellasdateofservicing forthatappliance. (Official Gazette, No.53/91);
Regulation onobligatory certification ofelectrical household appliances. (Official Gazette,
No.53/91);
Regulations onobligatory certification ofproducts which cause disturbances inradio-frequency
andofconditions which mustsatisfy companies andother legalpersons whoareauthorized tocertify
those products. (Official Gazette, No.53/91).
29. Electronic Appliances forHousehold andSimilar Uses
Regulation ondetermining unitsfromtheareas ofradio-communication, audio andvideo and
theunitstowhich theyareconnected, which canenter themarket onlyifsupplied withacertificate
ofguarantee, technical instructions, aguaranteed duration ofworking lifeandadateforservicing of
theunits. (Official Gazette, 53/91);
Regulationsonobligatorycertificationofelectronichouseholdappliancesandelectronicappliances
forsimilar use. (Official Gazette, No.53/91);
Regulation onobligatory certification ofproducts which cause radio-frequency disturbances
andofconditions which must satisfy companies andother legal persons authorized tocertify those
products. (Official Gazette, No.53/91);
Regulations regarding thecontents ofeasily available technical instructions which must be
supplied onunitsfromtheareas ofradio-communication, audio andvideo andunitstowhich theyare
connected. (Official Gazette, No.53/91).WT/ACC/HRV/30
Page37
30. Transmitters forRadio andTelevision Programmes: Radio-Telephone: Radio-Telegraph,
Wireless Microphone
LawonTelecommunications. (Official Gazette, No.53/94).
31. TransmitterswithBuilt-InReceiver:forRadio-Telephone,Radio-Telegraph:Amateur;Civilian
CB; Movable Telecommunication Network; Satellites; Part-Navigation andtheBroadcast
ofInformation
LawonTelecommunications. (Official Gazette, No.53/94).
32. Transmitters andReceivers forRadio Links
LawonTelecommunications. (Official Gazette, No.53/94).
33. Receivers for: Radio-Telephone; Radio-Telegraph andUnits which Work Outside ofthe
Frequency AreaAllocated toAllow forDirect Reception ofRadio andTelevision Programmes
LawonTelecommunications (Official Gazette, No.53/94).
34. GasHousehold Appliances
Regulations ondetermining gasappliances forthehousehold which canenterthemarket only
ifsupplied withacertificate ofguarantee, technical instructions, guaranteed duration ofworking life
andaservicing dateforthose appliances. (Official Gazette, No.53/91).
Regulations onobligatory certification ofgaskitchen stoves, gasrings, ovens, grills andbench
stoves andonconditions which mustsatisfy those organizations authorized tocertify these products.
(Official Gazette, No.53/91).
35. Road andAttached Vehicles andtheirReserve Parts
Regulation ondeclaring reserve parts forroadengines. (Official Gazette, No.53/91);
Regulation ondetermining automobile industry products which canenter themarket onlyif
supplied withacertificate ofguarantee, technical instructions, guaranteed duration ofworking life,
andadateforservicing. (Official Gazette, No.53/91);
Regulation onvehicles (Official Gazette, No.82/96);
Regulations onobligatory certification ofcoating ofbrakes onroadandattached vehicles.
(Official Gazette, No.53/91);
Regulation onobligatory certification ofwheel bearings. (Official Gazette, No.53/91).
36. Equipment forAgricultural Activities
Regulation ondetermining equipment forthecarrying outofactivities inagriculture which
mustbesupplied withtechnical instructions, forwhich aservice datemustbeestablished aswellas
aguaranteed time-period fortheduration oftheinsured service. (Official Gazette, No.53/91);WT/ACC/HRV/30
Page38
Regulation onobligatory certification ofproducts which cause radio-frequency disturbances
andofconditions which must satisfy companies andother legal persons authorized tocertify these
products. (Official Gazette, No.53/91).
37. Office machines forwriting, foraccounting, forreproducing documents aswellascashregisters
foruseinstores, hospitality facilities andhotels
Regulation ondetermining office machines forwriting, machines foraccounting andmachines
forreproducing documents aswellascashregisters foruseinstores, hospitality facilities andhotels
which canenter themarket onlyifsupplied withcertificates ofguarantees, technical instructions,
guarantee onduration ofworking lifeandadateforservicing forthese products. (Official Gazette,
No.53/91);
Regulation ondetermining electrical appliances forthehousehold which canenter themarket
onlyifsupplied withcertificate ofguarantee, technical instructions, guaranteed duration ofworking
lifeandadatefortheservicing ofthese appliances. (Official Gazette, No.53/91)
Regulationonobligatorycertificationofelectronichouseholdappliancesandelectronicappliances
forsimilar use. (Official Gazette, No.53/91);
Regulation onobligatory certification ofproducts which cause radio-frequency disturbances
andofconditions which must satisfy companies andother legal persons authorized tocertify these
products. (Official Gazette, No.53/91);
38. Manual andPortable Appliances forExtinguishing Fires
Regulation onobligatory certification ofmanual andportable appliances forextinguishing fires
(Official Gazette, No.53/91).
39. Steel Propane-Butane Bottles withValve andBottles forTechnical Gas
Regulation onobligatory certification ofsteelpropane-butane gasbottles withvalve (Official
Gazette, No.53/91).
40. Regulatory Pressure
Regulation onobligatory certification ofregulatory pressure forliquid gaspropane-butane
(Official Gazette, No.53/91).
41. Pressure Vessels
Regulation ofvessels under pressure.
42. Alternator which Belongs toEquipment under Pressure
Regulation ofvessels under pressure.
43. Boiler which Produces Steam above 0.5Bar
Regulation ofvessels under pressure.WT/ACC/HRV/30
Page39
44. Boiler withWater Temperature above 110
Regulation ofvessels under pressure.
45. Portable Electric Power Tool
Regulation onobligatory certification ofportable electric power tools. (Official Gazette,
No.53/91).
46. Telephone Appliances
Regulation ondetermining products which canenterthemarket onlyifsupplied withacertificate
ofguarantee, technical instructions, arecord ofauthorized service andduration ofworking lifefor
these products. (Official Gazette, No.53/91);
Examinationofpostalandtelecommunicationfacilities,fixtures,appliancesandotherequipment
intheHPTtelecommunications system. (Official Gazette, No.53/91).
47. Photographic Equipment
Regulationsondeterminingproductswhichcanenterthemarketonlyifsuppliedwithacertificate
ofguarantee, technical instructions, arecord ofauthorized services andduration ofworking lifefor
these products (Official Gazette, No.53/91).
48. Scales
Theorder specifying products which canbemarketed onlyifsupplied withawarranty, technical
instructions andalistofauthorized repair shops aswellastheleastduration ofawarranty period for
those products (Official Gazette, No.53/92).
49. CineCameras andPhoto Cameras
Theorder specifying products which canbemarketed onlyifsupplied withawarranty, technical
instructions andalistofauthorized repair shops aswellastheleastduration ofawarranty period for
those products. (Official Gazette No.53/91).
50. Cements
Theorder onthecompulsory attestation ofcements (Official Gazette No.53/91).
51. Fractionated Stone Aggregate forConcrete andTarmac
Theorder onthecompulsory attestation offractionated stone aggregate forconcrete andtarmac
(Official Gazette No.53/91).
52. ClayRoof Tiles andBricks
Theorder onthecompulsory attestation ofclayrooftilesandtheconditions thathavetobe
fulfilled byorganizations authorized toattest those products (Official Gazette No.53/91);WT/ACC/HRV/30
Page40
Therules onthecompulsory attestation offacade bricks andclayblocks andtheconditions
thathavetobefulfilled byorganizations authorized toattestthoseproducts (Official Gazette No.53/91).
53. BulbNecks
Theorder onthecompulsory attestation ofthreaded bulbnecks (Official Gazette No.53/91).
54. Insulated Electrical andEnergy Conductors andCables
Theorder onthecompulsory attestation ofenergy conductors andcables (Official Gazette
No.53/91).
55. Switches forVarious Devices
Theorder onthecompulsory attestation ofswitches forvarious devices (Official Gazette
No.53/91).
56. Unleaded Motor Petrol
Therules regulating thequality ofunleaded motor petrol (Official Gazette No.53/91).
57. FuelOils
Therules regulating thequality offueloils(Official Gazette No.53/91).
58. JetEngine Fuels
Therules regulating thequality ofjetengine fuels(Official Gazette No.79/95);
59. Particle Boards
Theorder onthecompulsory attestation ofparticle boards forgeneral useandcivilengineering
(Official Gazette No.53/91).
60. Furniture
Therules onthecompulsory testing offurniture andfurniture parts andtheconditions that
havetobefulfilled bylegalentities authorized totestthose products (Official Gazette No.53/91);
Theorder specifying products which canbemarketed onlyifsupplied withawarranty, technical
instructions andalistofauthorized repair shops aswellastheleastduration ofawarranty period for
those products (Official Gazette No.53/91).
61. Elements ofStandard Building Constructions
Therulesonthecompulsory attestation ofelements ofstandard building constructions forfire
resistance aswellastheconditions thathavetobefulfilled byorganizations authorized toattest those
products (Official Gazette No.53/91).WT/ACC/HRV/30
Page41
62. Textiles -AllProducts
Theorder onthecompulsory attestation ofjute(Official Gazette No.53/91);
Theorder onthecompulsory attestation ofwool (Official Gazette No.53/91);
Theorder onthecompulsory attestation ofcotton (Official Gazette No.53/91);
Theorder ondocuments accompanying textile products onthemarket (Official Gazette
No.53/91);
63. CarTyres
Asspare parts forroadmotor vehicles.
64. Fluorescent Tube Lamps
Therules onthecompulsory attestation ofproducts causing radio interference andonthe
conditions which havetobefulfilled bycompanies andother legalentities authorized toattest those
products (Official Gazette No.53/91).
Question 76
Please provide theWTO justification forrequiring quality control, bearing inmind thatArticle 2.2
oftheAgreement onTechnical Barriers toTrade states that"technical regulations shall notbe
more trade-restrictive thannecessary tofulfil alegitimate objective ....Suchlegitimate objectives
are,interalia:national security requirements; theprevention ofdeceptive practices; protection
ofhuman health orsafety, animal orplant lifeorhealth, ortheenvironment." andArticle 2.2
oftheAgreement onSanitary andPhytosanitary Measures states that"Members shall ensure
thatanysanitary orphytosanitary measure isapplied onlytotheextent necessary toprotect human,
animal orplant lifeorhealth, isbased onscientific principles andisnotmaintained without
sufficient scientific evidence-
Answer:
Therequirementofqualitycontrolfortheproductsinquestionisbasedontherelevantprovisions
oftheTBTandSPSAgreements, aimed atpreventing deceptive practices (inparticular prevention
ofsub-standard ordangerous imports intoCroatia) andatprotecting human health andsafety aswell
animal andplant lifeandhealth, andtheenvironment.
Question 77
Foreachoftheproduct types stillsubject toquality control:
(a) please indicate alltherelevant HSnumbers.
Answer:
Thenames oftheproducts onthelistaredetermined byquality regulations andnotHSnumbers.WT/ACC/HRV/30
Page42
(b) please indicate theform thatthequality control takes.
Answer:
Thequality control ofimported goods takesplace attheborder. Domestically-produced goods
arecontrolled during theproduction process andatthetimethegoods leave thefactory. Bothtypes
ofgoods arealsocontrolled through spot-checks onthemarket attheretail level. There isthusno
discrimination astothecontrol andtheapplicable standards. Thegoods arecontrolled bywayofsensor
inspection, i.e.visual examination bythemarket inspector. Onlyincases ofdoubt whether thegood
comply withtheapplicable standard isamore detailed examination carried out.
(c) please indicate thequality (orother) standard thatmust bemet;
Answer:
Thestandards applicable tothe64products (imported ordomestic) stillsubject toquality control
arecontained intherespective government regulations (seeabove). Asexplained before these are
mostly former Yugoslav standards, ofwhich about 30percenthadbeen prepared byadopting
international standards andtherestonthebasisofnational standards ofother countries. Inaddition,
themore recently adopted regulations (e.g.product items 11,20,23,30-33, 35,58)are,andnew
standards willbe,based oninternational orregional/European standards.
(d) Iftheresponse to(c)isaCroatian standard, please alsoindicate whether there
areanyother standards which areconsidered tobethesame asorequivalent to
theSaudi standard.
Answer:
There arenoCroatian standards which arethesame orequivalent toSaudi standards.
Question 78
Which product types require "previous examination byexpert institutions" asopposed to"sensor
inspection"? Ineach case, what isthereason forrequiring "previous examination byexpert
institutions"?
Answer:
Aprevious examination byexpert (orqualified), institutions (asopposed tosensor inspection)
isrequired forprocessed agricultural products, alcoholic beverages, oilderivatives andtextiles. (Please,
refertopage2ofdocument WT/ACC/HRV/22)
Question 79
Please provide alistofexpert institutions which arequalified tocarry outexaminations.
Answer:
Thelistofthose institutions hasbeenprovided. Please refertodocument WT/ACC/HRV/22.
Question 80
Aretestresults produced byother internationally recognized testing organizations inearlier tests
accepted? Ifnot,whynot? Ifyes,isacceptance ofthese testscontingent upon anyconditions?WT/ACC/HRV/30
Page43
Answer:
Inaccordance withtheStandardization Act,aRegulation isbeing prepared which willprovide
forrecognition oftestresults byinternationally recognized testing organizations, subject tocertain
conditions. Withexpect thisregulation tobeadopted inforthcoming weeks andwillbeconsequently
communicated totheWTO Secretariat upon translation toEnglish.
Question 81
Isprior examination orsensor inspection required forevery single shipment, ordotheCroatian
authorities accept repeat shipments without recourse tothisonerous procedure?
Answer:
Under theterms oftheRules ontheProcedure andManner ofPerforming Quality Control,
amarket inspector canissueacertificate without preliminary testsifasensory inspection determines
thattheproduct hasbeenproduced bythesame producer, thatitisinequal andundamaged package,
withthesame trade mark orother signormark, andthatithasalready beendetermined bytesting
thequality ofpreviously arrived deliveries ofthesameproduct thatitmeets required quality standards,
thatacertificate hasbeenissued andthataperiod ofnotmore than90days, oratimelimitsetby
aspecial regulation, haspassed since theprevious testing.
Question 82
Please provide fulldetails ofthefeesassociated withthequality control ofgoods.
Answer:
Enclosed findtheDecision onAmounts tobePaidforCovering theCosts ofQuality Control
ofProducts Upon Export andImport (Official Gazette No.42/96)
Question 83
Ithasbeenstated thattheprinciple ofnational treatment isapplied incontrolling bothdomestic
products andimports. Atwhat point doesquality control ofdomestic products takeplace?
Answer:
Thequality control ofdomestic products iscarried outattheproducer, inthecourse of
production andaftertheproduction process, andalong withthequality control ofimported products
ontheinternal market.
Question 84
Aswehave understood them, thequality control procedures which Croatia hasdeveloped are
veryheavy compared toaccepted international practice. What consideration isCroatia giving
toreforming itsapproach topermit theintroduction ofamanufacturers selfdeclaration coupled
withpost-market enforcement?
Answer:
UnderthepresentCroatiansystem,manufacturers’self-declarationswithpost-marketenforcement
arenotaccepted.WT/ACC/HRV/30
Page44
Question 85
Theresponse toquestion 74ofWT/ACC/HRV/11 indicates that85percentofthestandards in
theRepublic ofCroatia aremandatory, pursuant totheLawonStandardization, which wasone
oftheformer federal lawswhich theRepublic ofCroatia assumed in1991. However, theresponse
toquestion 72,inthesame document, states thatthedraft LawonStandardization provides that
Croatian standards willbevoluntary.
- Willthedraft Law, when enacted, supersede allprovisions oftheLawonStandardization
andregulations promulgated pursuant toit?
- Willthedraft LawonStandardization, when enacted, supersede ormodify theImport
andExportQualityControlofCertainGoodsAct,whichwasnotifiedinWT/ACC/HRV/22?
Ifyes,please describe fully thechanges.
Answer:
ThenewLawonStandardization hassuperseded theoldlaw,whereas theLawonImport and
Export Quality Control ofcertain goods (seeWT/ACC/HRV 22)hasnotbeenchanged.
Question 86
According toWT/ACC/HRV/13, Croatia states thatitis"making strong efforts toreplace"
standards inherited from theformer Yugoslavia (JUS), byadopting international andregional
standards.
- Please elaborate ontheefforts toadopt international standards. What specific guidance
hasbeengiventotheCroatianauthoritiesresponsibleforestablishingstandardswithrespect
totheadoption ofinternational standards?
Croatia states thatanewLawonStandardization wasexpected topassitsParliament inJune
1996.
- Whatisthestatusofthenewlaw?HowdoesthenewlawincorporateWTOTBTprinciples?
Please submit acopy when available totheWTO Secretariat forreview byinterested
Members.
Answer:
ThenewLawonStandardization (Standardization Act)entered intoforce on10July1996.
Itincorporates theWTO TBTprinciples andexpressly mandates thatthenewCroatian standards will
beprepared bytheadoption ofinternational standards (ISO, IEC), regional/European standards and,
iftheformer donotexist, standards ofdeveloped countries. Presently, about 100standards arebeing
prepared inCroatia onthebasisofinternational andregional standards which willreplace theformer
Yugoslav standards (30percentofwhich, however, werealsobased oninternational standards). The
textoftheStandardization Actisnowbeing translated fromCroatian intoEnglish andwillbesubmitted
totheWTO Secretariat.
Question 87
Strong efforts arebeing made inCroatia inorder toreplace theinherited standards byinternational
andregional standards. What arethefirstresults ofsuchefforts?WT/ACC/HRV/30
Page45
Answer:
Thesituation inMarch 1997 isasfollows: Passing ofabout 300Croatian norms (HRN) is
under way, according tothemethod oftranslation fromtheoriginal language (mainly from English)
intoCroatian language. 30norms arealready finished. Itisplanned toprepare about 100Croatian
norms permonth byaccepting international andEuropean norms. Inthisway, infiveyears period,
about 6000 Croatian norms would beaccepted. Itispossible toprepare suchabignumber ofnorms
through method ofpublishing ormethod ofthefirstpage, i.e.without translating them intoCroatian
language.
Question 88
Regarding thenewLaw onStandardization, could Croatia confirm thattechnical regulations
which arestillapplied aresubstantially those oftheformer Yugoslavia?
Answer:
OnthebasisoftheLawonStandardization, 55rulesonobligatory inspection andconfirmation
ofproducts areinforce. Most ofthose rules (50)areinherited from theformer Yugoslavia. From
1991 to1997, fivenewrules were passed:
- switches forfireprevention ("Official Gazette", No.10/94);
- furniture andparts thereof ("Official Gazette", No.63/95);
- gasappliances forbigkitchen andforcamping ("Official Gazette", No.79/95);
- trade categories andtheclasses ofhoglogsandhalves ("Official Gazette", No.79/95);
- fireresistance ofthelockers forstoring paper documents ("Official Gazette", No.18/96).
Question 89
HastheRepublic ofCroatia yetidentified theentity which willserve asaTBT inquiry point?
(WT/ACC/HRV/13)
Answer:
TheRepublic ofCroatia hasnotdetermined asyettheinstitution which willbeanInformation
Center fortechnical obstacles totrade. Thedesignation ofInformation Center isunder way.
Question 90
Croatia hasanextensive regime for"quality control". Howaretheprovisions oftheImport and
Export Quality Control ofCertain Goods Actapplied todomestic products? Please confirm that
likeCroatian products, soldwithin thecountry, aresubject tothesame standards andquality
control testsandrequirements aslikeimported products.
Answer:
Thequality control ofimported goods takesplace attheborder. Domestically-produced goods
arecontrolled during theproduction process andatthetimethegoods leave thefactory. Bothtypes
ofgoods arealsocontrolled through spot-checks onthemarket attheretail level. There isthusno
discrimination astothecontrol andtheapplicable standards. Thegoods arecontrolled bywayofsensor
inspection, i.e.visual examination bythemarket inspector. Onlyincases ofdoubt whether thegoods
comply withtheapplicable standard isamore detailed examination carried out.WT/ACC/HRV/30
Page46
Question 91
Croatia states thatdraft technical regulations, standards, andconformity assessment procedures
arepublished bytheState Office forStandardization andMetrology in"Glas Zavoda". Does
Croatiaallowforpubliccommentinsuchdraftstandards?Ifso,whatistherecommendedcomment
period? Howarecomments from foreign entities addressed? What regulations oradministrative
procedures exist toguide theState Office forStandardization andMetrology intheprocess of
developing standards?
Answer:
Draft Croatian standards arenowbeing presented tothepublic foraperiod of30daysinorder
toenable thepublic tomake comments andremarks. Information onitispublished intheStateOffice
Journal. Remarks aretobeaddressed totheState Institute forStandardization andMeasurements
(DZNM). Rulebooks ontheprocedures tobefollowed when Croatian standards aretobeestablished
arebeing prepared following thestipulations oftheStandardization Act.
TheStateInstitute forStandardization andMeasurements isguided bytheprovisions andthe
mandate (mentioned above )oftheLawonStandardization when developing newstandards.
Question 92
During thelastmonths, approximately 100Croatian Standards werebeing prepared byadopting
international and regional standards. Have those standards been adopted sofar?
(WT/ACC/HRV/13)
Answer:
Seethereply toQuestion 85.
Question 93
HasthenewLawonStandardization been adopted bytheCroatian Parliament inJune 1996?
Among themain provisions ofthisLaw, itismentioned thatCroatian Standards willbevoluntary.
Could weobtain further explanations onthisprovision? (WT/ACC/HRV/13)
Answer:
Theapplication ofCroatian norms isnotobligatory asfrom1January 1997. Theobligatory
inspection andquality control islimited totheproducts which arespecifically regulated. TheLaw
determines theregulations onbasic requirement forproducts which concern security, protection of
health, protection ofenvironment andprotection ofconsumers. Theexisting 55regulations onobligatory
inspection andquality control areaccording tothefinalandtransitional provisions oftheLawon
Standardization stillinforce. Those regulations aremainly related tosecurity ofelectric andelectronic
appliances,boilersunderpressure,electromagneticcompatibility,constructionmaterials,fireprevention,
personal safety objects, antiexplosion protection, etc.
Those regulations havetobeinaccordance withEuropean Union directives, aswellasmethods
ofestimation ofproduct conformity totheregulations andnorms. Theregulations onbasicrequirement
forproduct havetobedetermined bytheministries according totheirscope ofactivities.WT/ACC/HRV/30
Page47
According totherules determined bytheLawonStandardization thebasic requirements a
product mustsatisfy aretosecure protection oflifeandhealth ofpeople, environment protection, and
consumer protection.
Onthedomestic market themarket inspection controls thequality ofalltheproducts forwhich
there areregulations onbasic requirements. Forimported goods, themarket inspection controls the
products fromthegreatnumber ofimporters ortheproducts which areimported byauthorized ornatural
persons forthepurpose ofperforming registered activities (production ofmaterials, rawmaterials,
spare parts) .
Thelawenvisages theacceptance ofinternational standards, European standards orstandards
ofother countries performed bytheNational Institute forStandards andMeasurements.
Preliminary testsbyauthorized institutions areconducted forproducts whose compliance with
basic regulations canbeverified onlybylaboratory tests.
TheStandardization Actforesees recognition ofdocuments issued abroad, which isdoneunder
certain terms bytheInstitute.
When thisinstitute isinoperation, quality control willdetermine whether acertain product
hasbeentested under required conditions inthecountry ofproduction, sothattestsinaCroatian
institution willnotbenecessary.
Question 94
HasthenewLawonStandardizationbeenadoptedbytheCroatianParliament?(WT/ACC/HRV/11
Question 73)
Answer:
TheLawonStandardization waspassed inJuly1996andpublished inthe"Official Gazette",
No.55/96 of10July1996.
Question 95
Please identify those items included within thelistinthe"Decision onDetermining Products Subject
toImport andExport Quality Control", asnotified inWT/ACC/HRV/22, thatareconsidered
"technically complex", andforwhich importers arerequired toprovide technical instructions,
alistofauthorized serviced agents andaguarantee document. Aredomestic producers ofthese
technically complex products alsorequired toprovide thisdocumentation?
Regarding theimport andexport quality control ofgoods:
- Please explain therationale forCroatia ’sextensive system ofquality control.
- Why isit"appropriate andjustifiable toextend theimport quality control requirements"
tocover awide array ofnon-food products?
- What isthejustification ofbroadening amandatory testing program toaddress problems
of"illegal imports", "non-payment ofimport duties", andto"protect domestic producers
from unfair competition"?WT/ACC/HRV/30
Page48
- What isthestatus ofthegovernment ruling which determines which non-food products
willbesubject toquality control? Please submit thelistofcovered products (byHSline
number) totheWTO Secretariat. Also, please indicate thespecific standard against which
eachproduct isevaluated.
Answer:
Thenumber ofproducts subject toquality control andtothedocumentation requirements listed
inthequestion hasrecently beenreduced from 88to64items; further reductions arelikely totake
place intheforeseeable future. Atthepresent time, weconsider thatforthese64items, quality control
isnecessary inorder toprevent deceptive practices ortoprotect human health andsafety, animal and
plant lifeandhealth, ortheenvironment. Domestic producers arerequired toprovide thesame
documentation asimporters.
Oneimportant side-effect ofthequality inspection attheborder isthatimports which are
prohibited under Croatian law("illegal imports" inWT/ACC/HRV/22), cases ofundervaluation
("non-paymentofimportduties")andshipmentsofsub-standardordangerousgoods("unfaircompetition
from poor-quality imports") canbedetected. Thiswasthemeaning oftheexplanation given in
WT/ACC/HRV/22 page1.
Thedecision astowhich products shallremain (orbecome) subject toquality control istaken
bythegovernment. Theactual standards which apply equally todomestic andimported goods are
elaborated bytheDZNM. Fortheexisting 64items, theapplicable standards arecontained inthe
respective government regulations (seeattached list,alsofortheHSnumbers ofthe64items).
Question 96
Initsresponse toquestion 76ofWT/ACC/HRV/11 andinWT/ACC/HRV/22, "Import andExport
Quality Control ofGoods", Croatia listsanumber ofproducts which require prior inspection.
- How isprior inspection carried out,specifically, where andwhen?
- Why aresome processed foods subject toprior inspection?
- Please explain what ismeant by"sensor inspection".
Answer:
Thequality control ofimported goods takesplace attheborder. Domestically-produced goods
arecontrolled during theproduction process andatthetimethegoods leave thefactory. Bothtypes
ofgoods arealsocontrolled through spot-checks onthemarket attheretail level. There isthusno
discrimination astothecontrol andtheapplicable standards. Thegoods arecontrolled bywayofsensor
inspection, i.e.visual examination bythemarket inspector. Onlyincases ofdoubt whether thegoods
comply withtheapplicable standard isamore detailed examination carried out.
Question 97
Howarefirms selected toconduct mandatory product certifications? What Croatian agency selects
competent labs? How aretheauthorized laboratories monitored?WT/ACC/HRV/30
Page49
Answer:
Since 1January 1997, theapplication ofCroatian standards isnon-binding.
Theobligation totestandcertify thequality ofproducts hasbeenlimited toproducts specified
intheregulations.
TheActstipulates thepassing ofregulations stating thebasic requirements regarding safety,
health protection, environment protection andconsumer protection thatproducts havetomeet. The
current 55regulations onmandatory testing andcertification arestillinforce following thefinaland
transitional clauses oftheAct.Thecurrent regulations relate tosafety ofelectrical andelectronic devices,
containers under pressure, electromagnetic compatibility, construction devices, fireprotection, personal
protection gear, protection against explosions, etc.Thesame regulations stipulate technical and
professional requirements tobemetbyinstitutions carrying outmandatory testing andcertification
ofproducts. Theprocedures forassessment ofinstitutions arecarried outbytheState Institute for
Standardization andMeasurements withthecooperation ofexternal andimpartial expert assessors.
Thesame institutions aresupervised bytheState Institute forStandardization andMeasurements.
Question 98
Aredomestically produced goods subject tothesame Sanitary, Phytosanitary, andquality control
checks thatimported goods aresubject to?
Answer:
Thesame sanitary, phytosanitary andquality control checks apply todomestic andimported
goods.
Question 99
Which legal provisions have been recently adopted (rules, decrees, instructions) inaccordance
withtheLawonAnimal Health Protection andVeterinary Medicine? (WT/ACC/HRV/21)
Answer:
Thefollowing regulations have been recently adopted andpublished inOfficial Gazette
number 28/1997 of12March 1997:
- decree onbanofuseofproteins originated from ruminants (with theexception ofmilkand
processed milk) inthefeedofruminants;
- decree onbanofimports intoRepublic ofCroatia andtransit through theterritory ofRepublic
ofCroatia ofpigsandwild boars andproducts originated from thesaidanimals from
Netherlands;
- decree onbanofimports intoRepublic ofCroatia andtransit through theTerritory ofRepublic
ofCroatia ofpigsandwildboars andproducts originated fromthesaidanimals fromcertain
region ofCzech Republic;
- decree onbanofimports intoRepublic ofCroatia andtransit through theterritory ofRepublic
ofCroatia ofpigsandwildboars andproducts originated fromthesaidanimals fromFederal
Republic ofGermany.WT/ACC/HRV/30
Page50
III.4. Incentives forExports ofGoods andServices
Question 100
InWT/ACC/HRV/7, Croatia referred toanattached listofproducts requiring import andexport
licenses. Wedidnotreceive acopy ofthislist,wasitsubmitted separately totheSecretariat?
Answer:
TheListofproductsrequiringexportandimportlicensesisattachedtothisdocument.(Available
inAccessions Division, Room 1126, forconsultation.)
IV. OTHER POLICIES AFFECTING FOREIGN TRADE
IV.1. Industrial Policy
Industrial property
Question 101
When willCroatia implement theTRIPS Agreement?
Answer:
Croatia plans toimplement fullytheTRIPS Agreement until1January 2000, thatbeing in
compliance withthetransition period setforth inArticle 65paragraph 3oftheTRIPS Agreement,
referring tothecountries intransition from centrally planned tothemarket economy.
Intheframework ofitsbiennial legislative activity comprising 1997 and1998, theRepublic
ofCroatia hasplanned theenactment ofthree lawscovering thefieldofindustrial property forthe
middle of1998e.g.thePatent Law, theTrade Mark Law, theLawonOrnamental Designs andModels
(Industrial Design), thesubject matter ofwhich isforthetimebeing covered bytheunitary Industrial
Property Lawand,inthefieldofcopyright andneighbouring rights, theLawonCopyright and
Neighbouring Rights.
Thementioned Industrial Property Lawbasically represents theadopted former Yugoslav Law
(Law ontheProtection ofInventions, Technical Improvements andDistinctive Signs, which wasin
1990 considerably revised andharmonized withtheEuropean standards) additionally revised bythe
Republic ofCroatia in1992, representing thesatisfactory legalframework forthefieldofindustrial
property.
Asregards theCopyright Law, itisadopted from theformer Yugoslav system, andwas
significantly revised bytheRepublic ofCroatia in1993.
Withregard tothemarkedly dynamic activity inthefieldofindustrial property andincopyright
andneighbouring rights ontheinternational level, asintheframework ofWIPO sointheframework
ofWTO (theadoption oftheTrademark LawTreaty, theProtocol Relating totheMadrid Agreement
Concerning theInternational Registration ofMarks; WIPO Copyright Treaty; WIPO Performances
andPhonograms Treaty; theAgreement onTrade Related Aspects ofIntellectual Property Rights),
thedrafting oftheabove-mentioned, newlawsbasically represents theharmonization ofinternal (home)
legislation withtherecently adopted solutions ontheinternational level.
Atthesame timeplease notethattheRepublic ofCroatia hasrecently enacted theLawonthe
Protection ofDataSecrecy (NNRHNo.108/96 -entered intoforce on31December 1996), which
stipulates thenotion, kinds andlevels ofsecrecy, measures andprocesses ofestablishment, useandWT/ACC/HRV/30
Page51
protection ofsecret data. Incaseofthenecessity, wearewilling tosendyouthetranslation ofthe
mentioned Law.
Atthesame timeplease notethattheRepublic ofCroatia hasrecently enacted theRegulations
onWine (NNRHNo.96/96 -entered intoforce on23November 1996) which regulates indetail the
aforesaid subject matter, including alsotheprotection oftheproduct withtheindication ofcontrolled
origin. ThesaidRegulations (containing 155Articles) forms partoftheLawonWine (NNRH
No.34/95) andistheenforcement actthereof.
Wecaninform theWorking Party thatthenewPenal Code (containing 391Articles) hasbeen
adopted bytheGovernment andthatitisunder consideration oftheParliament.
Thedrafting oftheLawonTopographies ofIntegrated Circuits, taking intoconsideration
priorities andactual needs willbepassed in1998/1999.
Bytheadoption oftheLawontheRatification ofInternational Convention ontheHarmonization
ofBorder Controls ofGoods, theRepublic ofCroatia hasenacted internal provisions bywhich the
border control hasbeenestablished bytheMinistry ofHealth (formedical andsanitary control), the
Ministry ofAgriculture andForestry (forveterinary andphytosanitary control) andtheMinistry of
Economy (forquality andtechnical standards control).
TheMinistry ofFinance -Customs administration asanadditional subject intheenforcement
ofintellectual property rights attheborder, istobemore intensively included intheenforcement of
intellectual property rights. Aprovision hasbeendrafted (Penal Law-provisions applying tointellectual
property) andthedrafting ofcertain provisions isstillgoing on,bywhich aconcrete authorization
willbegiven tocustoms authorities concerning thecontrol onborder (changes andamendments of
theCopyright Law).
Question 102
Croatia isaparty totheBerne Convention (1971) andtheAppendix, cf.Article 9.1oftheTRIPs
Agreement, which stipulates thatMembers shall comply withArticles 1through 21ofthesaid
Convention. IstheCroatian legislation fully inconformity withtheBerne Convention andthe
TRIPs Agreement ingeneral?
Answer:
Croatia hadadopted theCopyright Lawoftheformer Yugoslavia andhasharmonized itwith
theprovisions oftheBerne Convention 1971 (e.g.asregards thefieldofapplication, droitdesuite,
quotations). Butithastobeadded thatCroatia alsoadopted theBerne Convention, ratified bytheformer
Yugoslavia, withareservation (seetheDeclaration intheWIPO review, Copyright No9/1992) relating
totherightoftranslation. Croatia hasnotyetformally waived thisareservation andhasnotyetamended
itsLawtothateffect. However, evennow, despite thementioned reservation, thatLawgrants tothe
author ofthework published inaforeign language, enjoying protection under theprovisions ofthe
Berne Convention, therighttoaremuneration forthetranslation. With itsnewLaw, Croatia wants
tocomply inallwiththerequirements oftheTRIPS Agreement.
Question 103
Hasthefirstversion ofthePatent Law, theTrademark LawandtheLawonIndustrial Designs
been enacted? (WT/ACC/HRV/11 Question 86)WT/ACC/HRV/30
Page52
Answer:
Thedraftproposals ofthePatent Law, theTrademark LawandtheLawonIndustrial Designs
havebeendrafted, andsubmitted totheLegislation Office oftheRepublic ofCroatia ortoanarrow
circle ofhome experts. Consequently, thedraftproposals oftheabove mentioned Laws havenotup
tonowbeenformally submitted tothelegislation procedure.
Question 104
TheRepublic ofCroatia seems committed toremedying theremaining deficiencies initsregime
fortheprotection ofintellectual property through theratification andimplementation ofseveral
draft laws, including thePatent Law, theIndustrial Design Law, theTrademark Law, theLaw
onTopographies ofIntegrated Circuits, theLawonCopyright andNeighbouring Rights, theLaw
onBorder Controls onImports ofCounterfeited andPirated Goods, andthedraft provisions
toprovide trade secret protection.
Wecommend Croatia foritswillingness tobring itsintellectual property regime intoconformity
withTRIPS requirements, aswellasitsuseofWIPO technical advisors indrafting thelaws.
However, weareconcerned about thepace ofthedrafting andratification oftheintellectual
property laws. Weencourage theGovernment ofCroatia tostrengthen itsefforts tohavethelaws
enacted andtoestablish theadministrative framework necessary foreffective implementation
prior toWTO accession.
Intheresponse toquestion 98ofWT/ACC/HRV/11, theRepublic ofCroatia indicates thatasystem
ofenforcement ofintellectual property rights attheborder maynotbeineffect atthetimeof
accession totheWorld Trade Organization. However, theresponse alsonotes thatCroatia has
already adopted theLawontheRatification oftheInternational Convention ontheHarmonization
ofBorder Controls ofGoods, committing itselftoorganizing border services forcustoms, medical
andsanitary, veterinary, phytosanitary, quality andtechnical standards controls.
- Given thatextensive border enforcement commitments havealready undertaken forquality
control andtechnical standards control, whywould theRepublic ofCroatia beunprepared
tocommit toborder enforcement ofintellectual property rights, asofthedateofWTO
accession?
Weconsider effective enforcement ofintellectual property rights attheborders tobeanessential
component ofaWTO member ’sintellectual property regime. Allacceding countries areexpected
toprovide effective enforcement asofthedateofWTO accession.
Theresponse toquestion 108intheEnglish language version ofWT/ACC/HRV/11, regarding
useoftheTRIPS Agreement transition period, isunclear.
- WilltheRepublic ofCroatia implement immediately upon WTO accession theprotection
ofcopyrights andother standards stipulated bytheTRIPS Agreement?
Weconsider theTRIPS Agreement tobeafundamental partofthesingle undertaking ofWTO
obligations. Allacceding countries areexpected toimplement immediately, without resort to
transition periods, allprovisions oftheTRIPS Agreement atthetimeofWTO accession.WT/ACC/HRV/30
Page53
- Croatia should report totheWorking Party onitsspecific plans toalter itscurrent
legislation tobeinaposition tofully implement theTRIPS Agreement bythedateof
accession.
Answer:
Intheframework ofitsbiennial legislative activity comprising 1997 and1998, theRepublic
ofCroatia hasplanned theenactment ofthree lawsinthefieldofindustrial property forthemiddle
of1998i.e.thePatent Law,theTrademark Law,theLawonOrnamental Designs andModels (Industrial
Design), thesubject matter ofwhich isforthetimebeing covered bytheunitary Industrial Property
Lawand,inthefieldofcopyright andneighbouring rights, theLawonCopyright andNeighbouring
Rights.
Thementioned Industrial Property Lawbasically represents theadopted former Yugoslav Law
(Law ontheProtection ofInventions, Technical Improvements andDistinctive Signs, which wasin
1990 considerably revised andharmonized withtheEuropean standards) additionally revised bythe
RepublicofCroatiain1992,representingsatisfactorylegalframeworkforthefieldofindustrialproperty.
Asregards theCopyright Law, itisadopted from theformer Yugoslav system, andwas
significantly revised bytheRepublic ofCroatia in1993.
Withregard tothemarkedly dynamic activity inthefieldofindustrial property andcopyright
andneighbouring rights oninternational level, asintheframework ofWIPO sointheframework of
WTO (theadoption oftheTrademark LawTreaty, theProtocol Relating totheMadrid Agreement
Concerning theInternational Registration ofMarks; WIPO Copyright Treaty; WIPO Performances
andPhonograms Treaty; theAgreement onTrade Related Aspects ofIntellectual Property Rights),
thedrafting oftheabove mentioned, newlawsbasically represents theharmonization ofinternal (home)
legislation withtherecently adopted solutions ontheinternational level.
Atthesame timeplease notethattheRepublic ofCroatia hasrecently enacted theLawonthe
Protection ofDataSecrecy (NNRHno.108/96 -entered intoforce on31December 1996), which
stipulates thenotion, kinds andlevels ofsecrecy, measures andprocesses ofestablishment, useand
protection ofsecret data. Incaseofthenecessity, wearewilling tosendyouthetranslation ofthe
mentioned Law.
Atthesame timetheRepublic ofCroatia hasenacted theRegulations onWine (NNRHno.
96/96 -entered intoforceon23November 1996) which regulates indetail theaforesaid subject matter,
including alsotheprotection oftheproduct withtheindication ofcontrolled origin. ThesaidRegulations
(containing 155Articles) formtheconstituent partandenforcement actoftheLawonWine (NNRH
no.34/95).
Wecaninform theWorking Party thatthenewPenal Law(containing 391Articles) hasbeen
adopted bytheGovernment andthatitisunder consideration oftheParliament.
Thedrafting oftheLawonTopographies ofIntegrated Circuits, taking intoconsideration
priorities andactual needs willbepassed in1998/1999.
Byadopting theLawontheRatification ofInternational Convention ontheHarmonization
ofBorder Controls ofGoods, theRepublic ofCroatia hasenacted internal provisions bywhich the
border control hasbeenestablished bytheMinistry ofHealth (formedical andsanitary control), the
Ministry ofAgriculture andForestry (forveterinary andphytosanitary control) andtheMinistry of
Economy (forquality andtechnical standards control).WT/ACC/HRV/30
Page54
Ministry ofFinance -Customs administration asanadditional subject intheenforcement of
intellectual property rights attheborder, shallbemore intensively included intheenforcement of
intellectual property rights. Aprovision hasbeendrafted (Penal Law-provisions applying tointellectual
property) andthedrafting ofcertain provisions isstillgoing on,bywhich aconcrete authorization
willbegiven tocustoms authorities concerning thecontrol onborder (changes andamendments of
theCopyright Law).
AsregardstheTRIPSAgreementtransitionperiod(Article65.3-thetermupto1January2000,
forthecountries intheprocess oftransition fromthecentrally planned economy tothemarket economy)
theRepublic ofCroatia willplead forthementioned term, primarily forthereason ofbeing thecountry
intransition.
Atthesame timeplease notethattheRepublic ofCroatia plans tourgently amend i.e.modify
theexistent Copyright Law, including inthesame theprotection ofphonogram producers and
broadcastingorganizations.Thementionedmodificationsandamendmentswillbesubmittedtolegislation
procedure bythemiddle of1997. Apart from thisurgent intervention, thedrafting isplanned ofthe
newLawonCopyright andNeighbouring Rights, which willbesubmitted tothelegislation procedure
bythemiddle of1998.
Question 105
Under paragraph 1(a)itismentioned: "Activities onnewlaws aregoing onorareunder
preparation (Patent Law, LawonTrade/Service Marks, Lawonindustrial Designs, LawonLayout
ofIntegrated Circuits, LawonCopyright andNeighbouring Rights)." Please specify, when the
newlawswillenter intoforce. (WT/ACC/HRV/15)
Answer:
Thepartoftheexplanation canbefound intheanswer totheabove Question 86,andinthis
wayitisplanned thatthePatent Law, theLawonTrade/Service Marks, theLawonIndustrial Designs
willcome intoforce bythemiddle of1998.
Thedraftproposal oftheLawonModifications andAmendments oftheCopyright Lawis
thesubject ofwork oftheprofessional working group, anditisplanned thatitwillbesubmitted to
thelegislation procedure bythemiddle ofthisyear.
Apartfromthisurgentintervention,thedraftingofthenewLawonCopyrightsandNeighbouring
Rights isplanned andwillbesubmitted tothelegislation procedure bythemiddle of1998.
Asregards theLawonLayout ofIntegrated Circuits, taking intoconsideration allpriorities,
itsentering intoforce isplanned for1998/1999.
Question 106
DidCroatia accede tothePatent Cooperation Treaty? Ifnot,when canitbeexpected tohappen?
(WT/ACC/HRV/15)
Answer:
Croatia hasmade allpreparations foritsaccession tothePatent Cooperation Treaty, andthe
submission isforthcoming oftherespective materials tothelegislation procedure.WT/ACC/HRV/30
Page55
Question 107
When willthenewLawonEnforcement Procedure enter intoforce? Please outline andspecify
thecontent ofthislawespecially concerning provisional measures. (WT/ACC/HRV/15)
Answer:
ThenewLawonEnforcement entered intoforce on12July1996 (NNRH57/96).
Themain characteristics ofthisLawaretheintegrity oftheregulation oftheenforcement
procedure itself which follows afterthejudicial legalproceedings, orbyvirtue ofthedecision onthe
administrative procedure. Theenforcement isalsopossible onthebasisofcertain documents, ase.g.
notary public enforcement document. Apart fromparticularly regulating enforcement ontherealestate
andmovables aswellasondebtors 'resources, thisLawpaysaspecial attention to"Provisional
measures", bywhich itismade possible thatfurther illegal conduct isprevented evenbefore the
institution oflegalproceedings oranyother judicial process. Twokinds ofprovisional measures can
bedistinguished: those which serve toensure certain monetary demands aswellasthose relating to
theinsurance ofnon-monetary demands. Justbytheapplication ofthelatter measures, some ofwhich
areenumerated bytheLaw, itispossible toprevent further unlawful conduct inthefieldofintellectual
property. Itisimportant tomention thatthecourt mayorder, according totheactual situation, such
aprovisional measure which isintheactual casethemostacceptable inthecontext ofpreventing further
unlawful conduct.
Question 108
When doesCroatia intend toenact legislation concerning theborder control oftheimportation
ofcounterfeited goods intheline with Articles 51ffoftheTRIPS-Agreement?
(WT/ACC/HRV/15)
Answer:
Inthelegislation procedure theadoption isinprocess oftheFinal proposal ofthePenal Law
bywhich among other questions thequestion ofthestandards regarding theimport ofcounterfeited
products isregulated inconformity withtheArticle 51oftheTRIPS-Agreement.
Atthesametimetotheproposal oftheLawonModifications andAmendments oftheCopyright
Law, which isinthephase ofconsideration bytheprofessional working group, anarticle isadded
regulating thequestion ofsupervision andcontrol bythecustoms service procedure inthecaseof
theimport ofcounterfeited products andpirated goods respectively.
Question 109
Under paragraph 3)itismentioned: "Foreign legalandnatural persons canalsoachieve breeders
rights byapplying theprinciple ofreciprocity". How fardoesthisprovision respect thenational
treatment requirement ofArticle 3oftheTRIPS-Agreement? (WT/ACC/HRV/15)
Answer:
National treatment shallbeaccorded under thecondition ofreciprocity which isprovided by
theUPOV Convention.WT/ACC/HRV/30
Page56
Question 110
When doesCroatia intend toenact legislation complying withthedisposition ofArticle 39ofthe
TRIPS-Agreement? (WT/ACC/HRV/15)
Answer:
Croatia hasenacted theprovisions complying with thedisposition ofArticle 39ofthe
TRIPS-Agreement bytheLawontheProtection ofMarket Competition (NNRHno.48/95) andthe
LawontheProtection ofDataSecrecy (NNRHno.108/96).
Question 111
When does Croatia intend toapply theMFN treatment according toarticle 4ofthe
TRIPS-Agreement? (WT/ACC/HRV/15)
Answer:
Croatia intends toapply theMFN treatment according toarticle 4oftheTRIPS-Agreement
atthetimeofitsaccession tothisAgreement.
Question 112
Does theactual regulation ofappellations oforigin comply with theArticles 22ffofthe
TRIPS-Agreement? When willthenewlegislation enter intoforce? (WT/ACC/HRV/15)
Answer:
TheactualregulationofappellationsoforigincomplywithArticle22ffoftheTRIPS-Agreement.
Thecomparative analysis oflegalsolutions byother countries concerning thefieldofappellations of
origin isinprocess. Bycarrying itout,itwillbeassessed towhatextent ourexisting legislation is
tobeamended ormodified respectively. Thesaidamendments ormodifications willbeprepared for
thelegislation procedure in1998.
Copyright andrelated rights
Question 113
Arethere currently more detailed plans onhowtheprotection onIntegrated Circuits isintended
toberegulated? (WT/ACC/HRV/11 Question 110)
Answer:
Thepreparations forthecomparative analysis ofthelegislation ofdifferent countries concerning
thefieldofintegrated circuits areinprocess. Itistherefore tooearlytotalkabout thementioned field.
Question 114
Wewishtounderline theimportance weattach totheprotection ofcopyrights andrelated rights
infullconformity withtheTRIPs Agreement from thedayofaccession. Thisapplies inparticular
totheprotection ofproducers ofsound recordings andbroadcasting organizations which arenotWT/ACC/HRV/30
Page57
protected under Croatian lawatpresent. Please provide aschedule formaking taking thenecessary
steps tofillthepresent gapsinthelegislative structure.
Answer:
Croatia hadadopted theCopyright Lawoftheformer Yugoslavia andhasharmonized itwith
theprovisions oftheBerne Convention 1971 (e.g.asregards thefieldofapplication, droitdesuite,
quotations). Butithastobeadded thatCroatia alsoadopted theBerne Convention, ratified bytheformer
Yugoslavia, withareservation (seetheDeclaration intheWIPO review, Copyright No9/1992) relating
totheright oftranslation. Croatia hasnotyetformally waived suchareservation andhasnotyet
amended itsLawtothateffect. Butevennow, despite thementioned reservation, thatLawgrants
totheauthor ofthework published inaforeign language, enjoying protection under theprovisions
oftheBerne Convention, therighttoaremuneration forthetranslation. With itsnewLaw, Croatia
wants tocomply inallwiththerequirements oftheTRIPS Agreement.
TheRepublic ofCroatia plans tourgently amend i.e.modify theexistent Copyright Law,
including inthesame theprotection ofphonogram producers andbroadcasting organizations. The
mentioned modifications andamendments willbesubmitted tolegislation procedure bythemiddle
of1997. Apart from thisurgent intervention, thedrafting isplanned ofthenewLawonCopyright
andNeighbouring Rights, which willbesubmitted tothelegislation procedure bythemiddle of1998.
Atthesame timethecancellation ofthereservation concerning therightoftranslation under
theBerne Convention isplanned.
Geographical indications
Question 115
Please explain inmore detail howgeographical indications areprotected: forexample, doesthe
lawcontain provisions inrelation toconsumer deceit andunfair competition?
Does Croatian lawgrant additional protection forgeographical indications forwines andspirits
(asforeseen byArticle 23oftheTRIPs Agreement)?
Answer:
Geographical indications intheRepublic ofCroatia areprotected bytheapplication ofthe
provisions oftheIndustrial Property Law(Articles 37-43). Penal provisions regarding theprotected
geographical indications canbefound inthePenal LawoftheRepublic ofCroatia aswellasinsome
other laws.
Article 107ofthePenal LawoftheRepublic ofCroatia (NNRHNo.32/93) comprises criminal
actofconsumer deceit which consists ofputting tothemarket ofproducts withindication ofdatanot
corresponding tothecontent, kind, origin orquality ofproduct orputting tothemarket products which
according toitsweight orquality donotcorrespond towhatispresumed under suchproducts, orputting
tothemarket aproduct without indication ofthecontent, kind, origin orquality oftheproduct, where
suchindication isprescribed bytheLaw. Withregard tosuchcriminal actsimprisonment uptothree
years oralternatively afineisprescribed bytheLaw.
ThedraftofthenewPenal Law(Article 284)alsocomprises criminal actofconsumers deceit
which among other things consists ofputting onthemarket ofproducts withprotected indication for
products which arenotprotected.
Furthermore, Article 58oftheLawonTrade (NN RHNo.11/96) regulates theunfair
competition which assuchqualifies thesaleofgoods having indications ordatathatcreate orarelikelyWT/ACC/HRV/30
Page58
tocreate confusion withregard totheorigin, method ofproduction, quantity, quality orother
characteristics ofgoods. Article 59ofthesameLawprovides forthelegalprotection ofpersonal estate
withthepurpose ofremuneration fordamages caused byillegal actsofunfair competition, incourt
proceedings.AtraderandtheChamberofCommerceandotherformsoftradersassociationsareactively
entitled toinstitute legalproceedings.
Pursuant toArticle 22,oftheLawonWine (NNRHNo.34/95), provisions concerning
indication andprotection ofthecontrolled origin forwines, andspirits obtained through distillation
ofwines, shallbeprescribed bytheMinister ofAgriculture andForestry, andthathasbeendoneby
theenactment oftheRegulations onWine (NNRHNo.96/96).
Layout designs ofintegrated circuits
Question 116
Croatia isrequested toindicate what steps itistaking toensure theadoption oftheplanned Law
onSemi-Conductors (currently foreseen for1997).
Answer:
Taking intoconsideration actual needs andpriorities thework onthedraftLawonLayout
Designs ofIntegrated Circuits isleftfor1998/1999.
Protection ofundisclosed information
Question 117
Please provide more detailed information onthisaspect ofintellectual property protection than
isgiven inWT/ACC/HRV/27: thereference to...usual provisions applied forsuchapurpose
allovertheworld" istoogeneral.
Answer:
TheRepublicofCroatiahasrecentlyenactedtheLawontheProtectionofDataSecrecy(NNRH
No.108/96-enteredintoforceon31December1996),whichstipulatesthenotion,kinds(State,military,
official, trade andprofessional secrets) andlevels ofsecrecy (State secret, topsecret, secret and
confidential data), andmeasures andprocesses ofestablishment, useandprotection ofsecret data.In
caseofthenecessity, wearewilling tosendyouthetranslation ofthementioned Law.
Enforcement
Question 118
Please explain inmore detail (than inWT/ACC/HRV/27) therelevant legal basis forthe
enforcement ofintellectual property rights, inparticular, thenewLawonEnforcement aswell
astheprovisional measures andinjunctions which areavailable toaright holder.
Wehavenoted thatCroatia intends tointroduce alawontheborder control oftheimportation
ofcounterfeited goods andplagiarisms within fiveyears from thedaytheWTO Agreement comes
intoforce forCroatia. Croatia isrequested totakethenecessary steps toimplement thislawbefore
WTO accession.WT/ACC/HRV/30
Page59
Answer:
UndertheLawonEnforcement(NNRHNo.57/96)withinChapter31("provisionalmeasures"),
toprevent further damages which arelikely toarisefrom theinfringement ofintellectual property a
court decision onprovisional measures, actually themeasure totheinfringing person regarding
suppression offurther illegal acts,maybeasked for.
Asregards theregulation oftheborder control oftheimportation ofcounterfeited products
andpirated goods, theRepublic ofCroatia isundertaking thefollowing: thenewPenal Lawwhich
isinprocess ofbeing adopted bytheParliament regulates thequestion ofsanctions relating tothe
importation ofcounterfeited products andpirated goods. Atthesame timechanges andamendments
oftheCopyright Law, which isplanned tobesubmitted tothelegislation procedure bythemiddle
ofthisyear, regulate thecompetence ofcustoms administration incaseofcounterfeiting andpiracy.
Customs Administration oftheRepublic ofCroatia plans toprepare innearfuture theRegulations
which willregulate inmore details procedure inthatfield.
Bytheadoption oftheLaw ontheRatification oftheInternational Convention onthe
Harmonization ofBorder Controls ofGoods, theRepublic ofCroatia hasenacted internal provisions
bywhich theborder control hasbeenestablished bytheMinistry ofHealth (formedical andsanitary
control), theMinistry ofAgriculture andForestry (forveterinary andphytosanitary control) andthe
Ministry ofEconomy (forquality andtechnical standards control).
IV.2. Agricultural Policy
Question 119
Itisstated thatCroatia willeliminate remaining quantitative restrictions intheagricultural sector.
Could Croatia explain thetimeschedule forsuchelimination?
Answer:
Croatia confirms thatithasalready eliminated allquantitative import restrictions inthe
agricultural sector withtheadoption ofCustoms Tariff of1July1996.
Question 120
BecauseofthelackofcreditfundsfororganizingcertainproductionstheGovernmentwasenforcing
asystem ofprotective prices. HowlongdoesCroatia intend tousethissystem? (WT/ACC/HRV/11
Question 119)
Answer:
OperationoftheStateDirectorateforCommodityReserves(nowofficiallyrenamedDirectorate
forCommodity Reserves aspartoftheMinistry ofEconomy) isregulated bytheLawonState
Commodity Reserves (Official Gazette 1992/1994). Reorganization oftheDirectorate, incooperation
withtheWorld Bank iscurrently taking place .Forthetimebeing theDirectorate isoperating under
thestated lawaccording towhich commodity reserves areusedfor(i)securing thenecessary quantities
tosatisfy theneeds inthecaseofwarorimminent wardanger orgreat natural disasters; and,(ii)
intervention onthemarket inorder tosecure itsstability incaseofgreater distortions ortoprevent
such distortions. Commodity reserves consist ofbasic agricultural products, production inputs,
agricultural andfoodproducts, some industrial products, production inputs, petrol anditsderivatives,
medicine andsanitary material. Intervention onthemarket bytheDirectorate isdonebyorder ofthe
Government ofCroatia inthecasewhen market distortions couldn 'tberesolved byusual measures
andtheoperating ofreserves iswithin theresponsibility oftheDirectorate forCommodity Reserves,
which isanon-profit governmental organization.WT/ACC/HRV/30
Page60
Thecontext inwhich theDirectorate forCommodity Reserves conducts intervention on
agricultural market refers tothefollowing: system ofprotective prices which isapplied inRepublic
ofCroatia forsixagricultural products istechnically carried outthrough activities oftheDirectorate
forcommodity reserves. Thismeans justtheactivities which haveonlypurpose tosecure protective
prices forproducers ofthose products thatCroatian Government considers strategically important and
which aremainly oneofthecontents ofpublic stockholding.
Theintention tonarrow theactivities oftheDirectorate refers tothefollowing: byapplying
the"time model" alower levelofneeded reserves willbeestablished forcertain agricultural products
inpermanent reserves. Thevolume ofmarket intervention reserves willgreatly decrease which will
beachieved bycombination ofthefollowing measures: (i)newsystem ofestablishing theprotective
prices, which willbebased onconnection toworld trends; and,(ii)encouragement oftheprivate
stockholdings.
Question 121
Which lawshave sofarbeen enforced andprepared inthefieldoflegislation which affects the
implementation oftheStrategy fordevelopment oftheCroatian agriculture? (WT/ACC/HRV/11
Question 120)
Answer:
Thelegislation which hasbeenadopted istheDecree onestablishing ofCouncil forAgricultural
Policy (Official Gazette 50/96.)
IV.2.(a) System ofsubsidies inagricultural production
Question 122
Croatia hasreported thatitdoesnothave anyagricultural export subsidies.
Wecommend Croatia forbinding itsagricultural export subsidy commitment atzero. Export
Subsidies arethemost trade distorting measures intheagricultural sector andwearepleased
thatCroatia hascommitted nottousethem.
InHRV/11, Croatia states thatitintends tochange thesystem offinancial incentives andinput
subsidies tocorrespond totherequirements ofpartIVoftheAgreement onSubsidies and
Countervailing Duties (non-actionable subsidizing).
Anyagricultural subsidies must beincluded intheagricultural country schedule andmust be
consistent withtheAgreement onAgriculture. TheAgreement onAgriculture prevails overthe
Agreement onSubsidies andCountervailing Duties when discussing subsidies intheagricultural
sector. Therefore, anymodifications must beconsistent withtheAgreement onAgriculture.
According toWT/ACC/HRV/7, 510.000 kuna were allocated toagricultural financial incentives
andsubsidies inthe1996. budget.
- What amount offunds were actually spent onagricultural financial incentives in1996
How willthissupport beincorporated intheagricultural country schedule?WT/ACC/HRV/30
Page61
Answer:
Indocument WT/ACC/HRV/7/Add.1 isadetailed tablewithpaid-out production incentives
andsubsidies for1994, 1995and1996. These figures areincluded intherevised document WT/ACC/4,
which Croatia hasforwarded totheWTO Secretariat, inMay1997.
Question 123
When doesCroatia intend tochange thesystem ofsubsidies sothattheincentives correspond
totherequirements ofpart IVoftheAgreement onSubsidies andCountervailing Duties
(non-actionable subsidizing)? (WT/ACC/HRV/11 Question 12)
Answer:
Croatia isintheprocess ofrestructuring itssystem ofsubsidies sothatitcorresponds tothe
requirements ofpartIVoftheAgreement onSubsidies andCountervailing Duties (non-actionable
subsidizing). Thiscould takesome timebecause theprecondition forthatistheestablishment ofland
registry which would allow Ministry ofAgriculture andForestry andtheGovernment ofCroatia to
define "lessfavoured areas" andother preconditions forimplementation ofthenewsystem ofsubsidy
payments.
Re:WT/ACC/SPEC/HRV/1
Question 124
Croatia 'sagricultural country schedule, WT/ACC/SPEC/HRV/1, onlyprovides datafor1995.
Please provide datareflecting theaverage ofthethree most recent years inaccordance withthe
requirements ofWT/ACC/4, forpurposes ofcomputing theAggregate Measurement ofSupport.
Croatia hasindicated thatHRK 501,729,000 wasallocated fromthebudget in1994foragricultural
incentives andcompensation. This number isnotreflected inCroatia(s agricultural country
schedule.
Answer:
TheRepublic ofCroatia hasincluded allfigures which relate toanytypeofsubsidies inrevised
tables forwarded totheWTO Secretariat, inMay1997.
Question 125
Croatia includes sardines aspartofitsAMS calculation inWT/ACC/SPEC/HRV/1. Sardines
should notbeincluded intheagriculture schedule. SeeAnnex 1oftheAgreement onAgriculture
forthelistofproduct coverage.
Answer:
Please, refertotheprevious answer.WT/ACC/HRV/30
Page62
Question 126
Currency: Croatia usesitsdomestic currency ("Kuna") initsdraft schedule ofcommitments.
Croatia should bemade aware thatifitscommitments areexpressed inKunas, itmust alsomeet
itscommitments inKunas.
Baseperiod: while weunderstand thesevere economical andpolitical situation Croatia hasbeen
under inthelastyears, wewould appreciate ifCroatia could provide, totheextent possible, as
indicated inWTO Secretariat document WT/ACC/4 detailed information onallitsagri-food policy
measures, forthelastthree years where reliable dataexist(e.g.1994-1995-1996), orbeprepared
toprovide additional years ofdataastheaccession proceeds.
Answer:
Croatia hassubmitted therevised tables ofthedocument WT/ACC/4 totheWTO Secretariat
atthebeginning ofMay1997.
Question 127
Supporting Table DS:1 -"Green Box":
There arefiveprograms reported inthistable. Weneedtounderstand howthese programs operate
andmeet thegeneral criteria ofAnnex 2oftheAgreement onAgriculture, soitisimportant that
Croatia provide fulldescription ofthese measures, including domestic legislation reference, cost
ofthemeasure, thedateofentry intoeffect, theperiod ofapplication, andproducts toprincipally
benefit (ifanyindividual product).
WenotethatCroatia isusing 1994-95 asbaseperiod foritsmeasures exempt from reduction
commitments. Wewould encourage Croatia toprovide detailed information ofthose measures
inplace in1996, again providing reference tocriteria inAnnex 2.
Answer:
Croatia hassubmitted therevised tables ofthedocument WT/ACC/4 totheWTO Secretariat
atthebeginning ofMay1997.
Question 128
Supporting Table DS:2, DS:3 andDS:8:
Croatia submitted these tables, using baseperiod 1994-95 forDS:2 andDS:3, andbase1995for
STDS:8, without anydata. Could Croatia confirm thatitdidnothave anymeasures thatfit
these categories ineither 1994, 1995, nor1996?
Answer:
Croatia hassubmitted therevised tables ofthedocument WT/ACC/4 totheWTO Secretariat
atthebeginning ofMay1997.WT/ACC/HRV/30
Page63
Question 129
Supporting Table DS:4 andDS:9:
Croatia provided itscalculations using dataforonly1995. Please provide yourcurrent totalAMS
(andnon-product specific AMS) using anaverage fortheyears 1994 to1996. Asnoted inthe
working party, Croatia should notethat"sardines" and"fuel forfishery" donotqualify asbasic
agricultural products. Thissupport should bedeleted from thetables.
Answer:
Croatia hassubmitted therevised tables ofthedocument WT/ACC/4 totheWTO Secretariat
atthebeginning ofMay1997, inwhich thissupport hasbeendeleted.
Question 130
Supporting Table DS:5 -Market price support:
While wecommend Croatia forproviding details onreference prices, some specific details which
would allow abetter understanding ofthetable aremissing. Forexample, itisnotclear ifand
howexternal reference prices listed atthebottom ofthetable wereconverted intoCroatian Kunas
(from USdollar? ECU?), andwhich commodities therates apply to.Could Croatia clarify the
calculations made toevaluate external prices, providing datasources?
Answer:
Croatia hassubmitted therevised tables ofthedocument WT/ACC/4 totheWTO Secretariat
atthebeginning ofMay1997.
Question 131
Could Croatia explain howadministered prices andeligible production areestablished, andhow
theyareapplied? Towhat volumes ofproduction dotheyapply? Isthistotalproduction?
Answer:
Croatia hassubmitted therevised tables ofthedocument WT/ACC/4 totheWTO Secretariat
atthebeginning ofMay1997.
Question 132
Could Croatia please correct thetotalmarket price support value itreported formilk? According
toourcalculations, thefigure should beHRK 5,956,460 instead ofHRK 7,147,752 kunas. Please
notethatthiscorrection should alsobemade inSTDS:4.
Answer:
Croatia hassubmitted therevised tables ofthedocument WT/ACC/4 totheWTO Secretariat
atthebeginning ofMay1997.WT/ACC/HRV/30
Page64
Question 133
Supporting Table DS:6 andDS:7:
Regarding column 3ofthese twotables, could Croatia indicate (with brief explanation) thetype
ofsupport measure thelisted commodities benefited from during thebaseperiod 1994-1996?
Answer:
Croatia hassubmitted therevised tables ofthedocument WT/ACC/4 totheWTO Secretariat
atthebeginning ofMay1997.
Question 134
Overview offinancial incentives andinput subsidies for1996:
According toourcalculations, totalinput subsidies foragricultural seedandmineral fertilisers
should be,in1996, HRK 105,285,988, notHRK 195,285,988. Could Croatia correct orexplain
thisfigure?
Answer:
Croatia hassubmitted therevised tables ofthedocument WT/ACC/4 totheWTO Secretariat
atthebeginning ofMay1997.
IV.2.(b) System ofguaranteed prices
Question 135
According toWT/ACC/HRV/7, wheat, sugar beets, sunflower, soybeans, oilrapeandtobacco
were subject toguaranteed prices in1995. How doestheGovernment ofCroatia decide which
commodities areentitled toguaranteed prices? Please identify thecommodities whose prices were
guaranteed in1996 andthecommodities whose prices willbeguaranteed in1997 bytariff line
item.
Answer:
Commodities which haveguaranteed prices in1997 bytariff lineandtheirlevels arethe
following:
1001.10 Wheat HRK 1,10/kg
1206.00 Sunflower HRK 2,00/kg
1201.00 Soybeans HRK 1,90/kg
1205.00 Oilrapes HRK 1,82/kg
1212.91 Sugarbeet HRK 0,22/kg
2401.10 Tobacco HRK 8,00/kg
These products areconsidered tobeessential forthefeeding ofthepopulation, andinaddition
areimportant inputs fortheprocessing industry.WT/ACC/HRV/30
Page65
Question 136
According toWT/SPEC/HRV/1, milk received aprice support in1995. However, milk isnot
included among thecommodities listed inWT/ACC/HRV/7 ashaving beensubject toguaranteed
prices. Please address thisapparent inconsistency.
Answer:
Milk wasnotmentioned inthecited document because milkproducers agreed topaythe
government ’srecommendation ontheguaranteed price andinpractice theproducers payatleastthat
price. Theguaranteed price formilkwasHRK 1,27perlitterbothin1995 and1996.
Furthermore, thelackofdomestic milksupply byCroatian producers (caused mainly bythe
war)isthebasic reason whythisproduct isnotincluded inthelistofagricultural products with
guaranteed prices.
IV.2.(c) Special feesonimports ofagricultural andfoodproduce (surtax)
Question 137
Wecommend Croatia foreliminating variable levies onagricultural products. Variable levies
shield producers against international competition anddistort trade.
IV.4. Foreign Exchange System andExchange Rate Policy
Question 138
According toWT/ACC/HRV/5 (onprivatization), foreign exchange deposits have been frozen
sinceapost-independence liquidity crisis in1991. What isthetotalvalue offrozen foreign exchange
deposits? How doestheLawontheFoundations oftheForeign Exchange Operations andGold
Trading address theproblem offoreign holders offoreign exchange deposits whowishtorepatriate
these deposits? Does Croatia have atimetable topermit unlimited transfer offoreign exchange
deposits?
Answer:
In1991theGovernment ofCroatia passed aDecree, which laterbecame theLawonConverting
Foreign Exchange Deposits intoDebtfortheRepublic ofCroatia. Theproblems surrounding theforeign
exchange deposits andtheconversion togovernment debtonlyaffected citizens oftheRepublic of
Croatia, notforeign depositors.
Thebalance oftheforeign exchange deposits wereUS$3,006,786,500 on31December 1991
decreasingbyUS$1,533,761,400overafiveyearperiodtoamounttoUS$1,533,025,100on13July96.
Foreign exchange deposits canbepaidoutindomestic currency orinforeign currency bythe
banks when funds areavailable. Inaddition holders oftheforeign exchange deposits could purchase
houses, apartments, shares, and/or bonds withtheirbalance.
Article 41oftheLawontheForeign Exchange System, Foreign Exchange Operations and
Gold Transactions stipulates "Foreign investors mayfreely transfer abroad theprofit earned bythe
investment ofcapital intheRepublic ofCroatia, thecapital towhich theyareentitled upon theWT/ACC/HRV/30
Page66
termination oftheinvestment, andtheproceeds ofthesaleofstocks orshares, aftertheyhavemet
thelegally prescribed liabilities".
Theprofit earned byaforeign contractor ofcapital projects intheRepublic ofCroatia may
betransferred abroad freely.
Article 42
Inaddition tothecases specified under Article 41hereof, assets canbetransferred abroad to
aforeign person onthefollowing ground:
(i) compensation forexpropriation orforother actsbystateorlocalauthorities resulting inthe
lossorreduction ofproperty offoreign persons intheRepublic ofCroatia;
(ii) salaries andother remunerations paidtoforeign persons employed byadomestic person;
(iii) royalties settled pursuant tointernational treaties orfactual reciprocity byacopyright
agency andonthebasis ofcopyright contracts;
(iv) damages through insurance, ifthecollection ofdamages inforeign currency isprovided for
bytheinsurance contract ortreaty;
(v) paymentofcontractualdamagesorpaymentofobligationsderivingfromout-of-courtsettlements;
(vi) inheritance, under thecondition ofreciprocity ininheritance andtransfer thereof;
(vii) enforcement ofcourt andgovernment authority rulings;
(viii) other cases foreseen bythelaw.
IV.6. Government Procurement
Question 139
Asapartofitsprotocol accession commitments, weexpect Croatia tobecome amember ofthe
Government Procurement Agreement, withaschedule ofcommitments tobesubmitted tothe
GPA Committee nolater thanthree months after thedateofaccession totheWTO.
IV.6.(b) Government commodity reserves
Question 140
Theresponse toquestion 149ofWT/ACC/HRV/11 indicates thattheLawonState Commodity
Reserves applies tobasic agricultural andfoodproducts, some industrial products, production
inputs, petrol anditsderivatives, medicine andsanitetic material Please identify, including HS
tariff numbers, allproducts covered bytheLawonState Commodity Reserves.
Remark:
TheStateDirectoryforCommodityReservesisofficiallyrenamedDirectorateforCommodityReserves
andisnowpartoftheMinistry ofEconomy.WT/ACC/HRV/30
Page67
Answer:
According totheprovisions oftheLawonStateCommodity Reserves, theState commodity
reserves include thebasic agricultural andfoodproducts, industrial products, reproduction materials,
rawmaterials, petroleum products, medicaments, medical supplies andproducts ofspecial purposes.
Agricultural andFood Products
- wheat grain
- wheat flour
- rice
- corn
- oil
- sugar
- honey
- milkinpowder
- various cheese
- eggsinpowder
- livebovine animals
- liveswine animals
- livesheep, poultry andfish
- meatcansvarious
- drybeans
- pea’scans
- tablesaltanddenatured salt
- leaven
- rawcoffee beans
- rawcocoa beans
IndustrialProducts,ReproductionMaterials,RawMaterials,petroleumProducts,medicaments,Medical
supplies andProducts ofPetspecial Purposes
- paraffin oil
- gasoilD-2
- mazut
- lead
- flatglass
- special purposes vehicles
- vehicles -Tank lorries forwater
- fire-engine andfirepumps
- generating units andpumps
- detergents andSoaps
- matches
- adhesive binder
- cotton
Question 141
Please describe anymarket interventions made pursuant totheLawonState Commodity Reserves
inthepastthree years, other thanforagricultural products.WT/ACC/HRV/30
Page68
Answer:
During thelastthree years thestateintervened insupply ofthefollowing industrial products,
rawmaterials andpetroleum products:
- mazut
- heating oil,extra light
- cotton
- wool
- lead
- detergents
Question 142
IstheState Department forCommodity Reserves allowed toexport anycommodities thatit
purchases from domestic market interventions?
Answer:
TheDirectorateforCommodityReservesisallowedtoexportgoodswhichithasboughtthrough
government intervention onthedomestic market onlyifthedecision onexport ismade bythe
Government oftheRepublic ofCroatia.
TheStateDepartment ofCommodity Reserves ispermitted tocontract fortheimportation of
goods under certain circumstances, including toprevent anincrease indomestic prices ofagricultural
andfoodproducts orthemonopolistic behaviour ofcertain manufacturers.
Question 143
IstheState Department ofCommodity Reserves required todistribute immediately these imported
products within thedomestic market ormayitstockpile orre-export these products?
Answer:
TheDirectorate forCommodity Reserves undertakes intervention measures onthemarket only
withtheaimtoprevent thedisturbances ofprices ofagricultural andfoodproducts ortoprevent the
monopolisticbehaviourofsomeproducers,onlyiforderedbytheGovernmentoftheRepublicofCroatia
andincases when thedisturbances onthemarket cannot besolved intheusual manner.
TheDirectorate isanon-profitable governmental administrative Organization anditonly
technically implements thedecisions oftheGovernment.
TheDirectorate forCommodity Reserves, according totheGovernment decision withregard
tointervention measures onthemarket, makes thedistribution ofgoods immediately upon import or
stores goods anddistributes them onthelocalmarket according totheneeds.WT/ACC/HRV/30
Page69
IV.7. State-trading Enterprises
Question 144
According toWT/ACC/HRV/5 (strategy forprivatization), there aretenlarge public enterprises,
under direct State ownership, which account forabout 12percent oftheenterprise sector(s total
work force. Please identify anddescribe these tenenterprises bycompleting foreach a
Questionnaire onstate trading. Have these enterprises been granted exclusive orspecial rights
orprivileges which could influence through their purchases orsales thelevel anddirection of
imports andexports?
Answer:
With regard tothese tenenterprise which areenumerated inanswer toquestion 156of
WT/ACC/HRV/11 wewould liketostress thattheyarepublic utilities performing activities ofpublic
nature orinterest. Theonenotmentioned isINA, thenational oilcompany which isstillstate-owned,
notapublic utility andcompete onequal terms withprivate companies engaged inthesame fieldof
activity.
Croatia reconfirm thatnoneofthese tenenterprises aregranted exclusive orspecial rights or
privileges which could influence through theirpurchases orsalesthelevelanddirection ofimports
andexports.
Question 145
According toparagraph II.1.(d) ofL/7466 local governments receive partoftheir financing for
public services from companies owned bythem andconcession rights granted. Please identify
anddescribe eachofthese locality-owned companies andtheconcession rights thattheyhavebeen
granted. What werethetotalrevenues generated bythese enterprises in1996, orduring themost
recently-available statistical year?
Answer:
Withregard toparagraph II.1(d) ofL/7466 wewould liketoclarify thatthetranslation ofthe
respective Croatian textisimprecise. TheCompanies mentioned areonlylocalpublic utilities which
perform services suchaspublic transportation, waste management, water supply andetc.which are
under authority oflocalauthorities.
Having thatinmind, nostatistical dataareavailable onthetotalrevenues generated bythese
public utilities.
Question 146
ItisrequestedthatCroatiawouldprovidestatisticalinformationontheoperationsoftheDirectorate
forCommodity Reserves inthepastthree years.
Answer:
Inorder togiveananswer, please specify whatkindofdataisrequired.WT/ACC/HRV/30
Page70
IV.9. Subsidy Policy
Question 147
Could Croatia please confirm thatitmaintains nosubsidies "contingent, whether solely orasone
ofseveral other conditions, upon theuseofdomestic overimported goods" within themeaning
ofArticle 3(b)oftheAgreement onSubsidies andCountervailing Measures.
Answer:
Yes.
Question 148
SofarCroatia hasnotprovided sufficiently detailed information onitssubsidization policies,
therefore,additionaldetailedinformationisrequiredespeciallyregardingthelevelsofsubsidization,
thedesired effects andpolicy objectives aswellastheduration ofsuchpolicies. Furthermore,
Croatia hadinthepastsubsidized orprovided export financing forindustrial equipment and
vessels. Does Croatia have anyexport financing programs andwhat aretheconditions forsuch
financing?
Answer:
TheCroatian shipbuilding industry either forforeign ordomestic market from1991uptotoday
wasnotsubsidized bytheGovernment oftheRepublic ofCroatia.
Theexport financing policy isplanned tobecarried outthrough theCroatian bank for
Reconstruction andDevelopment which willgiveaspecial consideration toimport-export business.
Theimplementation oftheprogram ofrestructuring ofshipyards isunder way, andweare
notsureatthismoment whatattitude towards theformandthescope ofsubsidization fornewshipyards
willbetaken.
Question 149
How doesCroatia plantoharmonize subsidization ofthefishing andcanning industry withthe
WTO rules?
Answer:
Croatia supplied theWTO secretariat withthetables containing thesubsidization datawhich
areinaccordance withWTO rules.WT/ACC/HRV/30
Page71
V. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
V.1. Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods andTrade in
Services
Question 150
Weseekacommitment from theRepublic ofCroatia thatitwilladhere totheWTO Agreement
onTrade inCivil Aircraft from thedateofaccession.
VI. TRADE INSERVICES
General
Question 151
Weappreciate thedescription oftheCroatian services regime provided inWT/ACC/HRV/9.
However, since thesubmission ofthatdocument, theSecretariat issued atechnical note,
WT/ACC/5, which provides astandard format forthecomprehensive description ofservices
information.
Weregret anyinconvenience caused byasking foraresubmission ofservice information, but
thesubmission ofaresponse toWT/ACC/5 would greatly simplify andexpedite theWorking Party
review oftheCroatian services regime. Please submit aresponse inthenewformat.
Receipt ofthisinformation willgreatly aidusinpreparing aservices market access request.
Banking
Question 152
Establishment andOperation ofaRepresentative Office ofaForeign Bank: Arethere other
purposes allowed totherepresentative office thanthose onesmentioned onpage 3(toperform
market research inthefinancial andbanking sector, promote andinforming, andtoselfrepresent)?
(WT/ACC/HRV/17)
Answer:
Inaccordance withArticle 8oftheLawonBanks andSavings Banks, andArticle 1ofthe
Decision onthedetailed conditions onestablishing andoperating ofrepresentative offices oftheforeign
banks intheRepublic ofCroatia, therepresentative office oftheforeign bankisallowed onlytoperform
market research inthefinancial andbanking sector, promote andinform, andtorepresent thefounder
bank.
Question 153
What arethedifferences inthescope ofactivities thatareallowed between "savings banks" and
"banks"?WT/ACC/HRV/30
Page72
Answer:
Theminimal capital required forestablishment ofabankisDM5,000,000, equivalent amount
inlocal currency, orDM15,000,000 forabank registered fortransactions withforeign countries,
while forsavings banks itamounts toDM1,000,000.
Compared withthebanks which dotransactions withcitizens andeconomic operators inCroatia
andinforeign countries, thesavings banks takedeposits fromthecitizens onlyinlocalcurrency, follow
upthegiroaccounts, current accounts anddeposits onlyforcitizens andcraftsmen, aswellasmoney
transfers forcitizens andcraftsmen onlyinCroatia.
Banks grant credits tocitizens andeconomic operators, while savings banks grant credits
primarily tocitizens. Thesaving banks usetheremaining freefunds togrant credits tosmall and
medium-sized enterprises. Thesurplus offreefunds canbeinvested inbanks.
Thebasicdifferencebetweenbanksandsavingsbanksisintheestablishmentcapitalrequirements,
andbased onit,thenarrowed possibilities ofthesaving banks toprovide thefinancial services. Savings
banks areneither allowed tocarry outtransactions withforeign countries, ortocarry outcredit and
deposit activities forlegalpersons. They areallowed todoitonlyfornatural persons andcraftsmen.
Insurance
Question 154
Could Croatia please provide inwriting theexplanation provided during theworking party
regarding thereasons whycross-border provision ofinsurance services wasnotpermitted.
Answer:
Domestic andforeign persons areallowed under sameconditions toestablish aninsurance and
re-insurance company having itsheadquarters intheRepublic ofCroatia. Thecompanies owned by
foreign persons having itsheadquarters intheRepublic ofCroatia, areallowed tocarry outallinsurance
andre-insurance activities. Asfarastheforeign companies areconcerned, which havenoheadquarters
intheRepublic ofCroatia, theyareallowed toprovide services tolegalandnatural persons fromthe
Republic ofCroatia, i.e.insurance ofproperty andpersons, butonlyinspecific cases:
- lifeandnon-life insurance against riskwhich isnotavailable intheRepublic ofCroatia;
- foreign persons intheRepublic ofCroatia andtheirproperty, except when theinsurance is
obligatory;
- liability ofshipper forthedamage provoked tothethirdparty ofhisproperty;
- ships under construction oroverhauled, ifitisstrictly stipulated byacontract concluded with
aforeign buyer;
- foreign loans inorder toinsure theirrepayment (collateral insurance) ifitisstipulated bythe
contract onrequest oftheloanprovider;
- insurance ofgoods imported orexported iftheyarenottransported atariskofalocallegal
ornatural person.
Asfarasre-insurance isconcerned, aninsurance company isobliged toshare theriskwhich
exceedsitscapacityofinsuringonitsownaccountwithare-insurancecompanycarryingouttheactivities
ofactive (inward )re-insurance inthecountry concerned.
Insurance company isallowed exceptionally totakere-insurance inaforeign country incase
theforeign re-insurance company ’sconditions arefinancially morefavourable thenthoseofthedomesticWT/ACC/HRV/30
Page73
re-insurer. Domestic insurance company isobliged tooffertothedomestic re-insurance company a
partintheriskuptoitsriskability onitsownaccount under theconditions offered byaforeign
re-insurer.
Although thelimitations inre-insurance activities inforeign countries exist, wehavetostress
thatover90percentofre-insurance services areprovided byforeign re-insurance companies.
Themainreasons whyCroatia introduced certain restrictions concerning thedirect insurance
andre-insurance inaforeign country aretoencourage thedevelopment ofadomestic market ofinsurance
andre-insurance, tolower thecapital outflow inorder toimprove thebalance ofpayments and
strengthening ofinvestment activities.
Transport
Question 155
What aretheconditions forforeign companies toundertake public transportation services?
Answer:
Theconditions forforeign companies toprovide services inpublic transport areasfollows:
1. Aforeign company hastoberegistered forproviding public transport intheRepublic ofCroatia
i.e.ithastoestablish asubsidiary.
2. Inorder toprovide services inpublic transport, aforeign company hastoobtain alicence from
theauthorities concerned.
Telecommunication services
Question 156
Inwhat manner canforeign companies provide telecommunication services inCroatia?
Answer:
Foreign companies canprovide basic telecommunication services (services infixed
telecommunication networks, telexservices, telegraph services, facsimile services, packet-switched-data
transmission services, circuit switched datatransmission services andleased lines) onlythrough the
HPT-Croatian PostandTelecommunications (onthebasis oftheagreement withHPT).
Iftheforeign company wants toprovide other services (services inmobile telecommunication
networks, electronic mail, on-line information, electronic datainterchange, value-added services in
telephone network) itmust establish subsidiary inCroatia. Thissubsidiary thanmust begranted a
concession bytheTelecommunications Council inorder toprovide services.
Policies affecting trade inservices
Question 157
DidCroatia recently adopt anewlawontourism asfirstlegislation inlineofservice laws? It
seems thatcertain restrictions ornewstricter rules oftheconduct ofbusiness wereadopted. Could
Croatia indicate what isthebasic substance ofthenewlawandwhat werethereasons foradopting
thelawandwhat newrules apply?WT/ACC/HRV/30
Page74
Answer:
TheLawontheTourist Industry, asthemostimportant, butnotthefirstlawonservices, came
intoforce asof31December 1996. Thereason forpassing ofthisLawwas,among others, theneed
forharmonizing theCroatian tourist industry withthetourist industry oftheEUcountries (forexample,
inaccordance withtheEUrecommendations of13June1990, weintroduced thenewobligations for
travel agencies, withtheaimofprotecting theconsumers).
Before theLawontheTourist Industry, theLawonCatering cameintoforceasof5July1995,
andtheamendments ofthisLawasof15February 1997.
TheRegulation onClassification, Minimal Requirements andCategorization ofCatering
Establishments came intoforce asof15August 1995.
Theimplementation ofthetourist lawsandregulations: theentire legislation oncatering and
tourist industry provides alegalframework forupgrading thestandards ofcatering andtourist services.
Byacontrol oftheimplementation oftheabove mentioned lawsandregulations, theactivities ofthe
whole sector willbebetter organized, improved, andthequality ofthetourist services willbeupgraded.
Question 158
IfCroatia intends tointroduce stricter regimes inother areas oftheservices trade would itbe
willing toprovide advance information intheinterest oftransparency?
Answer:
Croatia willsupply therequested advanced information.
Market access andnational treatment
Question 159
Which aretheareas where foreign lawyers arenotallowed toconduct?
Answer:
Please refertoCroatia ’sinitial services commitments. (WT/ACC/SPEC/HRV/4)
Question 160
Could Croatia indicate theservice areas where itseeks MFN exemptions?
Answer:
Initially, Croatia willseekanexemption from theapplication ofthemost-favoured-nation
treatment intheroadtransport areabecause itiscarried outaccording tocurrent lawsthrough theusage
ofsystem oflicences, andonthebasis ofsigned bilateral long-term agreements.
Furthermore, Croatia will seek anMFN exemption from theapplication ofthe
most-favoured-nation treatment when acquiring realestate because there isareciprocity requirement
forforeign persons, except forimmigrants fromtheformer Yugoslav Republics andtheirdescendants
whoarewithout anycitizenship andwhorequire approval bytheMinistry incharge ofimmigration
foracquiring realestate.
Thisexemption applies toallcountries andisoftemporary nature.WT/ACC/HRV/30
Page75
Question 161
What criteria areusedbytheGovernment oftheRepublic ofCroatia tostipulate theparticipation
offoreign entities inthereconstruction tenders financed byCroatia? Theexperience shown that
thecompulsory tendering hasnotbeen applied inauniform manner.
Answer:
Thereconstruction intheRepublic ofCroatia isregulated bythepositive legislation. The
reconstruction itselfandtheactivities thataccompany it(bidinvitation, selection ofcontractor, contract,
thequality ofworks, terms ofpayment, etc.)arecarried outinaccordance withthose legalinstruments.
Allreconstruction works areannounced through public invitation totender. Allinterested domestic
andforeign persons havetheopportunity togetthenecessary information ontheannounced works.
They cansubmit theiroffer, quote thecommercial terms andparticipate inworks.
Question 162
What aretheconditions fortheparticipation offoreigners intheprivatization tenders?
Answer:
According totheCompany Law, Croatia adopted national treatment offoreign investments,
i.e.there areneither additional requirements norobligations fortheforeign investors ascompared
withdomestic investors. Toparticipate inprivatization tenders itisnecessary tosubmit arequest in
timeandtotaketender documentation about allthedetails onconditions forparticipation.
VII. LEGISLATION
Question 163
Itwould beappreciated ifCroatia would provide clearer timetables forthepreparation and
adoption ofthefollowing:
(a) legislation relative toservices.
Answer:
TheLawonHPT(Croatian PostandTelecommunication) dealing withtheseparation ofpost
andtelecommunications isintheprocess ofpreparation andisexcepted tobeadopted bytheendof
1997.
TheProgramme ofthelegal activities under competence oftheMinistry ofScience and
Technology in1997:
1. LawonInspection ofHigher Education 2ndquarter of1997
2. LawonSpecial Titles andAcademic Degrees 2ndquarter of1997
3. LawonEvidence ofScientific, Cultural, 4thquarter of1997
Educational andTechnical Cooperation with
Foreign Countries
4. LawonGeologic Exploitations 4thquarter of1997
5. LawonNational Information Network 4thquarter of1997WT/ACC/HRV/30
Page76
TheProgramme ofthelegalactivities regulating theservices within thescope ofactivities of
theMinistry ofMaritime Affairs, Transport andCommunications:
1. Railway Transport
In1997theamendments oftheLawonCroatian Railways areplanned tobemade. These new
stipulations areinaccordance withtheEUrecommendations onusage ofrailway infrastructure byfew
railway carriers.
2. Road Transport
AnewLawonRoad Transportation isbeing made anditsimplementation isplanned in1997.
3. Maritime Transport
TheLawonPublic LineMaritime Transport aswellastheamendments oftheMaritime Code
areplanned tobepassed in1997.
4. AirTransport
Thefollowing lawswhich fullyorpartly regulate providing oftheservices inairtransport
areplanned tobepassed:
LawonAirports (inparliamentary procedure);
LawonCivil Aviation (inpreparation);
LawonFlight Control (inparliamentary procedure);
LawonObligations andBasic Material andLegal Relations intheCivil Aviation.
From thelawswhich areunder competence oftheMinistry ofHealth, TheLawonMedicaments
andMedical Products isinparliamentary procedure.
TheMinistry ofEducation andSports iscurrently preparing thefollowing laws:
1. LawonEducation ofEthnic andNational Communities orMinority intheirnational Languages.
2. LawonOpen andNational Universities.
Regarding additional legislation relative tofinancial services Croatian Securities Commission
(CROSEC) isworking onseveral changes inlegislation:
Within thescope oftheactivities oftheMinistry ofLabour andSocial Welfare, thenewLaw
onSocial Welfare isbeing prepared.
Onthebasis ofnewlegislation inthefieldofproviding construction services, thenewlaws
areinpreparation, likeforexample LawonChambers ofArchitects andConstruction Engineers The
amendments ofcertain laws(Law onConstruction) willbenecessary afterpassing ofthose laws.WT/ACC/HRV/30
Page77
TheMinistryofUrbanPlaning,ConstructionandHousingcannotatthismomentgivetheprecise
answer about approximate dates ofpassing ofthelawsconcerned, butwesuppose thatitwillbeby
theend1997.
(b) executive regulations based ontheLawonstandardization, LawonTrade, Customs Tariff
Law
Answer:
Implementation Rules determined bytheLawonStandardization (Official Gazette, No.55/96
of10July1996) should bepassed inthe3-year period fromthedateoftheentry intoforce oftheLaw.
Until thenewrulesarepassed, therulesdetermined onthebasisoftheLawonStandardization
(Official Gazette, Nos. 53/91, 26/93, 29/94 and25/96) areinforce.
Theprovisions oftherulesthatdetermine thattheapplication ofCroatian norms fullyorpartly
areobligatory were inforce asof31December 1996.
Therules onbasic requirements forproducts, which concern security, protection ofhealth,
protection ofenvironment andprotection ofconsumers should bepassed bythecompetent ministries.
These ruleswillsubstitute theexisting rulesonobligatory inspection andnormalization mostofwhich
areinherited from theformer Yugoslavia.
During 1997, general rulesonthewaysofevaluation ofconformity ofproduct, onthesupplier 's
declaration onconformity, onauthorized laboratories andconfirmed institutions andruleonprocedure
ofacceptance offoreign reports oninspection.
ThenewCustoms Tariff Lawwhich isvalid since 1July1996, hasbeensenttotheWTO.
(c) legislation relevant topublic procurement;
legislation onanti-dumping, countervailing andsafeguards.
Answer:
Special regulations determining inmore detail theways andcriteria forimplementing
anti-dumping methods, countervailing duties andsafeguards shallbeadopted parallel withaccession,
butnotbefore thesecond halfof1998.
With regard tothePublic Procurement, itisgoverned bytheGovernmental Regulation on
Public procurement which isinforceasfrom1April 1997. AnewLawisinpreparation andisexpected
toenter theParliamentary procedure bymid-1997.
(d) regulations relative totheapplication ofrules oforigin, andother.
Answer:
Newlegislation onrules oforigin willbepassed during 1997.WT/ACC/HRV/30
Page78
ATTACHMENT 1
CROATIAN PROPOSAL OFTHE NON TARIFF LIST "D"-IMPORT FOR 1996
Amounts in(mil.Lit.)
No. CNCode Description Italy Slovenia Croatia
1. 02.02-21.06 Meat ofswine, fresh orfrozen, various cuts,
fish, crabs, molluscs, various vegetable
products, vegetables, greenery, additives
(consumption)9.450 7.970 1.480
2. 23.01 Flours, meals andpellets, ofmeat ofmeat offal 15 9 6
3. 25.01-29.17 various mineral products, salt,sulphur, earths
andstone, plastering materials, lime, cement,
ores, slagorash,mineral fuels, mineral oils
andproducts oftheir distillation, inorganic
chemicals, organic andinorganic compounds of
precious metals, hydrocarbons andtheir
derivatives, halogenates, alcohols and
halogenated derivatives, phenols, ethers,
peroxides, carboxylic acids200 112 88
4. 32.04 Synthetic organic colouring matter 15 9 6
5. 32.05-32.15 organic pigments (natural orsynthetic), paints,
varnishes, resins, printing inkordrawing ink800 480 320
6. 33.01-38.02 essential oils,toilet preparations, soap, natural
andartificial goods forphotography or
cinematography, glues andothers700 370 330
7. 38.08-38.23 miscellaneous chemical products, insecticides,
fungicides, herbicides15 9 6
8. 39.01-39.26 plastics andarticles thereof, polymers in
primary forms, polyethylene chloride of
polyvinyl, polyurethanes, polyesters and
chemical derivatives, waste, parings andscraps,
floor coverings, plates, tapes andother of
plastics12.528 4.973 7.555
9. 40.05-40.16 natural rubber andproducts thereof, plates,
sheets, strip, rodsandprofile shapes, tyres and
inner tubes, hygienic articles andothers1.000 600 400
10. 44.08-44.18 veneer sheets andsheets forplywood and
others, builders ’joinery andcarpentry ofwood,30 18 12
11. 45.03-45.04 articles ofnatural andagglomerated cork 600 165 435
12. 48.02-48.23 paper, paperboard, articles ofpaper pulp
(boxes, bags, etc.), registers, account books and
similar, stationary6.000 2.900 3.100
13. 50.07 yarn ofcombed wool, notputupforretail sale 15 9 6
14. 51.05-51.08 wool andfineorcoarse animal hair, carded or
combed, yarnofcombed orcarded wool, yarn
offineanimal hair, notputupforretail sale30 18 12WT/ACC/HRV/30
Page79
No. CNCode Description Italy Slovenia Croatia
15. 52.02-52.12 cotton waste, cotton carded orcombed, cotton
sewing thread, cotton yarn putupforretail sale160 96 64
16. 54.01-56.04 synthetic orartificial filament, felt,special
yarns andothers60 36 24
17. 56.07-56.58 ropes, cordage andknotted cordage 80 48 32
18. 68.05-68.10 abrasive materials, natural orartificial, in
powder orgrain, other waste ofwood, panels,
boards, tilesofmineral materials, articles of
cement, agglomerated withcement, articles of
cement80 48 32
19. 69.02-69.13 refractory bricks, blocks, tilesandother
ceramic goods, goods ofsiliceous earths and
ceramic goods andsanitary fixtures1.500 1.300 200
20. 70.03-70.19 glass andglassware, decorative glass, coloured
glass, laminated safety glass, bottles andflasks,
mirrors, blocks, boards, tilesandsimilar3.300 980 2.320
21. 72.08-72.19 products ofnon-alloy steel, hot-rolled flat
products, bars, profiles, wires ofstainless steel2.800 1.180 1.620
22. 73.04-73.26 articles ofironandsteel, tubes ,pipes and
hollow profiles, various products ofsteel,
containers, chains, anchors, screws, sewing
needles, stoves andradiators, other household
articles andcastarticles ofsteel andiron,
sanitary ware ofsteel andiron3.300 1.480 1.820
23. 74.07-74.12 650 390 260
24. 76.04-76.10 aluminium barsandprofiles, wires andplates of
aluminium830 638 192
25. 82.07-84.08 interchangeable tools forhand tools ormachine
tools, knives andcutting blades formachines,
turbines, generators, pistons, engines, boilers,
ETC.1.500 1.300 200
26. 84.13-84.19 pumps forliquids, whether ofnotfitted witha
measuring device, liquid elevators,
refrigerators, airconditioning machines,
machinery, plant orlaboratory equipment3.000 2.400 600
27. 84.22-84.29 machinery forcleaning, machinery forfilling,
closing, labelling, weighting machinery,
mechanical appliances, pulley tackle, cranes,
etc., mobile lifting frames, cranes, fork-lift
trucks, loading andunloading machinery
bulldozers, levellers, mechanical shovels, etc.1.280 1.068 212
28. 84.32-84.82 agricultural, horticultural orforestry machinery
forsoilpreparation orcultivation, machinery
formaking pulpoffibrous cellulosic materials,
book-binding machinery, printing machinery,
knitting machines, sewing machinery,
machinery forwashing, cleaning, drying,
wringing, ironing, dry-cleaning, sewing
machines, sewing machines needles1.100 760 340WT/ACC/HRV/30
Page80
No. CNCode Description Italy Slovenia Croatia
29. 84.65-84.66 machine fools forworking wood, cork, bone,
hard rubber, hardplastics andsimilar hard
materials, parts andaccessories suitable foruse
solely orprincipally withthemachines of
heading Nos8456 to8465150 90 60
30. 84.69-84.77 typewriters, word-processing machines,
calculating machines, accounting machines,
automatic dataprocessing machines, machinery
forsorting, screening, separating, washing,
machinery forshaping, machinery for
agglomerating, shaping ormoulding plastering
materials andrubber products160 96 64
31. 84.80-84.83 moulding boxes formetal foundry, mould
bases, moulding patterns, taps, valves, and
similar appliances forpipes, boiler shells, or
thelike1.300 1.180 120
32. 85.01-85.44 electric motors andgenerators, transformers,
electric machinery, electric accumulators,
apparatus forrecording andreproducing of
sound andpicture, television apparatus and
similar900 700 200
33. 87.01-87.15 tractors, tractors forsemi-trailers, andother
tractors, station wagons, vehicles forthe
transport ofgoods andspecial purpose vehicles,
chassis andbodies forthemotor vehicles and
parts andaccessories ofthemotor vehicles,
motor-cycles, bicycles, invalid carriages, parts
andaccessories2.000 1.740 260
34. 88.01-89.03 fishing vessels, factory ships andother vessels
forprocessing orpreserving fishery products,
other vessels forpleasure orsports80 48 32
35. 90.18-90.27 instruments andappliances used inmedical,
surgical, dental orveterinary sciences,
mechano-therapy appliances, respiration
apparatus, orthopaedic appliances, etc.20 12 8
36. 93.03,
93.04,
95.07arms forsporting orhunting, other arms
excluding those ofheading 93.07, parts and
accessories60 36 24
37. 94.01-94.05 furniture andparts thereof, lamps andother
lighting fittings, reflectors, chandeliers and
parts830 698 132
38. 96.12 typewriter orsimilar ribbons 20 12 8
TOTAL in(milITL) 56.558 33.978 22.580
TOTAL in% 100% 60% 40%