RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/HRV/7/Rev.2 
12 August 1999 
 (99-3419) 
Working Party on the  
Accession of Croatia  
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
 THE ACCESSION OF CROATIA TO THE 
 WORLD TRADE ORGANIZATION  
 
Revision  
 
INTRODUCTION 
1. The Government of Croatia applied for acc ession to the General Agreement on Tariffs and 
Trade (GATT 1947) in September 1993.  At its meeting on 27 October 1993, the GATT 1947 Council 
of Representatives established a Working Party to ex amine the application of the Government of Croatia 
to accede to the General Agreement under Articl e XXXIII of the General Agreement.  Following the 
conclusion of the Uruguay Round, Croatia requeste d accession to the World Trade Organization (WTO) 
under Article XII of the Marrakesh  Agreement establishing the Worl d Trade Organization.  Having 
regard to the decision adopted by the WTO General Council on 31 January 1995, the existing 
GATT 1947 Accession Working Party wa s transformed into a WTO Accession Working Party.  The 
terms of reference and the membership of th e Working Party are reproduced in document 
WT/ACC/HRV/8/Rev.5. 
2. The Working Party met on 1 April 1996; 23-24 January 1997;  21 January and 
16 October 1998;  and .....................  under the Chairman ship of Ms. A.-M. Plate (the Netherlands).  
DOCUMENTATION PROVIDED 3. The Working Party had before it, to serve as  a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Croatia (L/7466) and the questions submitted by Members on the foreign trade 
regime of Croatia, together with the replies th ereto (WT/ACC/HRV/ 3 and Corr.1, WT /ACC/HRV/4 and 
Addenda 1 and 2, WT/ACC/HRV/7 and Add.1, WT/ACC/HRV/11 and Add. 1, WT/ACC/HRV/27 and 
Addendum 1, WT/ACC/HRV/30, WT/ACC/HRV/39 and Addenda 1 and 2, WT/ACC/HRV/45 and 
Corr.1 and 2, WT/ACC/HRV/48,  WT/ACC/HRV/51, WT/ACC/HRV /54), and other information 
provided by the Croatian authorities (WT/ACC/ HRV/5 and Corr.1, WT/ACC/HRV/6 and Rev.1 and 
Corr.1, WT/ACC/HRV/9 and Co rr.1, WT/ACC/HRV/12 and Corr.1, WT/ACC/HRV/13, 
WT/ACC/HRV/14, WT/ACC/HRV/15, WT/ACC /HRV/16 and Rev.1,  WT/ACC/HRV/17, 
WT/ACC/HRV/18, WT/ACC/HRV/19, WT/ACC/HRV/20, WT/ACC/HRV/21, WT/ACC/HRV/22, WT/ACC/SPEC/HRV/7/Rev.2 
Page 2  
 
WT/ACC/HRV/23, WT/ACC/HRV/24, WT/ACC /HRV/25, WT/ACC/HRV/37 and Rev.1, 
WT/ACC/HRV/40, WT/ACC/HRV/43, WT/ACC/HRV/49, WT/ACC/HRV/55), including the 
legislative texts and other documentation listed in Annex I. 
INTRODUCTORY STATEMENTS 4. In his introductory statement, the representative of Croatia stressed that accession to the World 
Trade Organization was among the main priorities of his Government.  Croatia was pursuing a program  
of thorough economic adjustment and reform, transforming its economy into one based fully on market 
principles.  The efforts of the Government were underpinned by credits from the IMF, the World Bank 
and the European Bank for Reconstruction and Deve lopment.  Croatia was strengthening institutional 
relations with the European Union and free-trade ti es with countries in cent ral and eastern Europe.  
5. The near-term goals of his G overnment were to ac celerate economic grow th, privatization, 
public enterprise restructuring a nd the rehabilitation of banks;  co mprehensive reconstruction of war-
torn areas;  fight unemployment while maintaining lo w inflation and a stable exchange rate;  and to 
continue to develop the legal and institutional fram ework.  An internationally compatible market 
framework had been established with the enactment of the Company Law and the Law on Trade, for the 
most part adjusted in accordance with the principles of the GATT and resulting in substantial 
liberalization of foreign trade.  Croatia had also  introduced a new Customs Tariff, incorporating the 
1996 amendments to the International Convention on  the Harmonized Commodity Description and the 
Recommendation of the World Customs Organization Regarding Ozone Layer De pleters and the Draft 
Recommendation on Drugs.  Some financial incentives  and subsidies were provided to agriculture in 
accordance with the Law on Financial Incentives an d Subsidies in Agriculture and Fisheries (and its 
amendments).  The Government intended to maintain  guaranteed prices for a small group of agricultural 
products, while a system of variable levies had been abolished.  The representative of Croatia assured 
members of the Working Party that Croatia would take  all necessary steps to continue to improve its 
legal and institutional framework, so that the acces sion process could be accomplished as soon as 
reasonably possible. 
6. In their opening remarks many members of  the Working Party welcomed the request from 
Croatia to accede to the WTO.  Membership in the WT O would assist Croatia in its efforts to repair the 
damage of war and underpin its continuous and syst ematic transformation towards a market economy.  
Several members declared their interest in working co nstructively together with Croatia in establishing 
its terms of accession and ensuring that the mandate of the Wo rking Party be concluded in a timely 
manner.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 3 
 
 
7. The Working Party then proceeded to review th e economic policies and fo reign trade regime of 
Croatia and the possible terms of a Draft Protocol of Accession to th e WTO.  The views expressed by 
members of the Working Party are summarized below in paragraphs 8 to 224. 
ECONOMIC POLICIES Monetary and Fiscal Policy
 
8. Some members of the Working Party requested information on taxation policies in Croatia, and 
confirmation that the tax system di d not differentiate betw een foreign and domestic ownership.  Noting 
certain problems regarding the collection of taxes, some members asked Croatia to elaborate on the informal sector of the economy and m easures taken to reduce tax evasion. 
9. The representative of Croatia provided an up-date d description of the internal taxation regime in 
July 1996 (document WT/ACC/HRV/20).  The main elemen ts of the tax system were the Law on Profit 
Tax, the Law on Income Tax and the Law on Value Added Tax, replacing th e Law on the turnover tax 
of products and services on 1 January 1998.  Reve nues from the profit tax and the income tax were 
divided between the State, municipa lities, townships and counties in  fixed percentages in accordance 
with Article 45 of the Law on Financing Local Self -Government and Local Government.  In addition, 
local self-government units and governme nt units could also collect some local taxes in order to fill their 
budgets. 
10. The representative of Croatia said that the size of the informal economy was unknown, but 
studies based on employment data s uggested that the informal sector might add some 16 to 21 per cent 
to the official gross dome stic product.  Sectors with informal economic activity of some significance 
were trading, catering, construction, domestic appl iance and car repair, commercial and residential 
property rental, business services and household pe rsonal services, while the processing industry and 
agriculture appeared to be less affected.  Steps taken to contain the informal sector included the development of an effective tax system (in particular following th e introduction of value-added tax), 
lower taxes and improved labour re lations within a stronger regulator y framework and more effective 
labour inspection.  The financial police was also  stepping up operations to  enforce the tax laws. 
Foreign Exchange and Payments
 
11. The representative of Croatia noted that the le gal basis for Croatia's foreign exchange regime 
was the Law on the Foundations on the Foreign Exch ange System, effective since 19 October 1993.  
The Law regulated the foreign exchange market, in which all purchase and sale of foreign exchange took place.  Croatia had opted for a floating exchange rate for its national currency - the Kuna, pegged to 
the Deutsche Mark, and as from 1 January 1999 to the Euro  - to enable the economy to adjust to external WT/ACC/SPEC/HRV/7/Rev.2 
Page 4  
 
shocks.  The National Bank of Croatia was authorized  to intervene in the foreign currency market to 
maintain a competitive exchange rate.  Exchange rates were published daily by authorized banks and the 
National Bank of Croatia. 
12. A member of the Working Party asked whethe r Croatia differentiated between exporters and 
other firms regarding the availability of foreign exch ange or the rate of exchange and requested further 
information on Croatia's relationship with the IMF, in particular whether an y reservations had been 
made under Article XIV (Transitional Arrangements).  The representativ e of Croatia said that Croatia 
did not differentiate betwee n exporters and other firms in currency exchange rates or in the availability 
of foreign exchange.  Croatia had become member of the IMF in December 1992 following the model of partial succession.  As a memb er of the IMF Croatia maintained no reservation under Article XIV.  
Croatia had accepted the obligations of Article VIII, Sections 2, 3 and 4 of the IMF Articles of 
Agreement with effect from 29 Ma y 1995.  Thus, Croatia did not main tain any restriction on payments 
and transfers for current international transactions. 
13. A member of the Working Party inquired a bout the Law on Credit Relations with Foreign 
Countries.  The representative of Croatia said th at the Law regulated bo rrowing from international 
financial institutions and lending or borrowing arrangements with fo reign partners by authorized banks, 
companies or other legal entities, and guarantees issued for the account of domestic and foreign entities.  
A copy of the Law was provided to the Working Party.  Resident juridical persons, including commercial banks, were allowed to borrow abroad, but were required to register loans, including 
commercial credits, with the National Bank of Croa tia.  Resident legal or natural persons could only 
extend credits to non-residents from profits or cred its obtained abroad.  Natural persons could borrow 
from non-residents in domestic or fo reign currency.  On the issue of assets and liabilities of former 
Yugoslavia, the representative of Cr oatia said that negotiations were c ontinuing.  He added that Croatia 
had accepted calculations of th e International Monetary Fund and had assumed 28.49 per cent of the 
non-allocated debt of former Yugoslavia. 
Investment Regime
 
14. The representative of Croatia said that fore ign investment was regulated under the Company 
Law, entering into force on 1 January 1995.  The Law defined a foreign investor as any foreign national 
or legal person with a registered seat outside th e Republic of Croatia.  The new legal regime had 
nullified a number of restrictions on foreign investment maintained unde r previous legislation (the Law 
on Foreign Investments).  No particular sector was cl osed to foreign investment.  However, investments 
in the military industry and telecomm unications were subject to a spec ial procedure.  According to the 
Law on Telecommunications, foreign i nvestment in radio and televisi on concessions was limited to  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 5 
 
 
25 per cent of the capital of the co ncessionaire.  Inward portfolio inve stment was not re stricted, except 
for central bank short-term securities in the primary market. 
15. The representative of Croatia noted that fore ign direct investment by non-residents could take 
the form of joint venture or full ownership.  Regi stration with the commercial  courts was required.  
National treatment applied to foreign investment in principle, on condition of re ciprocity.  Amendments 
to the Company Law, abolishing the condition of re ciprocity and thus providi ng full national treatment 
in respect of the establishment of  commercial presence, had been ad opted by Parliament in March 1999, 
and would be valid from the date of  Croatia's accession to the WTO. 
16. The representative of Croatia said that Croati an residents were require d to report investments 
abroad to the Ministry of Economy ex post for statis tical purposes.  Acquisition of  real estate in Croatia 
by non-residents was granted on the basis of reciproc ity.  However, foreign exchange restrictions in 
practice prevented Croati an residents from purchasing real estate abroad. 
State Ownership and Privatization  
17. Some members of the Working Party asked Croa tia to provide information on its privatization 
programme and outline future plans in this area, not ing that the present Law on Privatization did not 
concern public enterprises,  banks, insurance companies, cooperativ es, marinas, hospitals and schools.  
Croatia was requested to provide an update on the status of current privatization activities, and an 
overview of plans concerning (i) privatization of the Government's holdings in manufacturing and 
services enterprises, and (ii) ow nership changes for firms and enterp rises termed "socially owned", the 
form of ownership under the former Socialist Fede ral Republic of Yugoslavia.  The information should 
indicate the type of firms privat ized (e.g. retail services, manufactu ring, agricultural processing), the 
nature of the firms remaining in State or other non-private form of ownership, and the portion of 
Croatia's trade and economic activity account ed for by these non-privatized holdings. 
18. The representative of Croatia said that priv atization involved the transformation of former 
"socially-owned" enterprises into joint-stock or limited liability companies with defined ownership 
structures.  Following independence, ten large infr astructure and utilities companies had come under 
direct State ownership as "public enterprises" while the remaining socially-owned enterprises were to be privatized in a two-stage process.  These enterpri ses submitted requests for commercialization to the 
Croatian Privatization Fund and could request "a utonomous transformation", i.e. propose their own 
privatization plans, until 30 June 1992.  First-stage privatization had been organized by the Croatian 
Privatization Fund, seeking wide participation by  employees and the popula tion at large by offering 
preferential rights for shar e subscription at substantia l discount, and payment by instalments.  Shares in 
enterprises not privatized during the first stage were subsequently transferred to the Croatian Pension WT/ACC/SPEC/HRV/7/Rev.2 
Page 6  
 
Funds (one third) and the Croatian Pr ivatization Fund (two thirds).  Unde r the responsibility of the latter, 
shareholdings had been reduced by various methods, including auctions at the Zagreb Stock Exchange, 
direct trade deals, tenders open to foreign investors, as well as free distribution of shares to war veterans, 
widows and their families.  Shares in some specific enterprises had been earmarked to be sold against frozen foreign exchange deposits (FFED).  Asked about  the conditions for foreigners to participate in 
privatization tenders, the represen tative of Croatia said that the Company Law provided for national 
treatment of foreign investment, includ ing participation in privatization. 
19. Croatian citizens had particip ated actively in the privatization;  some 600,000 small investors 
had acquired shares in a total of more than 2,500 en terprises.  The Governme nt also encouraged the 
establishment of Privatization I nvestment Funds (PIF's).  These were specialized funds collecting 
vouchers and coupons in exchange for shares in compan ies put up for mass privatization.  Contrary to 
other investment funds, the PIF's were not allowed to exchange shares against frozen foreign exchange 
deposits. 
20. The second phase of the privatization proc ess had been implemented through mass voucher 
privatization.  This privatization had, in effect, been a distribution of shares not sold in the first phase of 
privatization.  Vouchers had been distributed to i ndividuals affected by the hostilities such as injured 
servicemen, war widows and their fa milies, and other displaced persons and refugees.  The shares to be 
represented by vouchers had been held in the portfolio  of the CPF;  shares held by the State pension 
funds had not been included in the process.  In to tal, more than 500 companies had their shares sold 
through voucher privatization.  The first round of vou chers had been distributed in June 1998, and the 
process had been concluded by September 1998.  Th e representative of Croatia provided detailed 
information on the privatization process in doc uments WT/ACC/HRV/40, WT/ACC/HRV/51 (pp.5-26) 
and WT/ACC/HRV/54 (pp.3- 12).  Further information on progress  in privatization in Croatia is 
provided in Table 1.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 7 
 
 
Table 1:  Information on the privatization process in Croatia (as per May 1999)  
 100% 
State 
Owned 50-99% 
State 
Owned 25-50% 
State 
Owned up to 
25% 
State 
Owned Fully 
Privatize
d Total Total (nc. 
included) Total 
(bankruptcies 
included) 
No of Companies 44 53 146 502 1,856 2,601 2,726 2,950
Per cent of total 1.69 2.04 5.61 19.30 71.36 100  
Per cent of total (incl. non - commercialized) 1.61 1.94 5.36 18.42 68.09  
Per cent of total (incl. 
non - commercialized 
and bankruptcies) 1.49 1.80 4.95 17.02 62.92  
Total equity (HRK 
million) 3,147.7 1,845.5 5,709.8 19,541.8 57,487.5 87,732.3  
Per cent of total equity 3.9 2.10 6.51 22.27 65.53 100  
Average equity per 
company (HRK 
million) 71.5 34.8 39.1 38.9 31.0  
No of shareholders not 
compar
able 5,269 22,560 222,851 227,011  
Average No of Sh. (per 
Company) not 
compar
able 9 9 . 4 21 5 4 . 5 24 4 3 . 9 31 2 2 . 3 1  
 
No. of Companies Covered by Transformation Law 2,950   of which commercialized 2,825 
  of which non commercialized 125 
Liquidations and Bankruptcies 224  WT/ACC/SPEC/HRV/7/Rev.2 
Page 8 
 
 Enterprises in privatization Priva tized Enterprises Non-privatized Ente rprises Enterprises in liquidation and 
bankruptcies 
Sector No. Equity (DEM) % of 
total 
equity 
included 
in 
privati-
zation No. Equity (DEM) % of 
sector's 
EquityNo. Equity (DEM) % of 
sector's 
Equity No. Equity (DEM) % of 
sector's 
Equity 
Industry and mining 807 11,422,388,209 44.70 658 8,932,027,911 78.20 68 1,883,817,247 16.49 106 606,543,051 5.31 
Agriculture and fishing 249 2,001,849,648 7.83 196 1,048,914,286 52.40 26 652,687,931 32.60 27 300,247,431 15.00 
Construction 297 1,185,996,138 4.64 242 903,996,519 76.22 28 139,153,518 11.73 27 142,846,100 12.04 
Trade 513 4,487,864,122 17.56 433 4,087,737,546 91.08 41 229,970,803 5.12 39 170,155,773 3.79 
Tourism and catering 241 4,395,917,337 17.20 203 4, 220,684,494 96.01 32 168,929,018 3.84 6 6,303,824 0.14 
Housing construction 
and utilities 194 221,338,662 0.87 180 196,192,095 88.64 7 3,301,666 1.49 7 21,844,900 9.87 
Communal utilities 36 34,612,220 0.14 33 32,882,020 95.00 3 1,730,200 5.00  
Financial and other 
services 359 1,577,084,863 6.17 325 1,232,295,514 78.14 25 305,378,451 19.36 9 39,410,898 2.50 
Education, culture and 
publishing 89 210,391,650 0.82 75 178,265,028 84.73 11 28,889,422 13.73 3 3,237,200 1.54 
Health and social care 15 17,762,015 0.07 13 16,367,300 92.15 2 1,394,715 7.85  
Total 2,825 25,555,204,865 100.00 2,358 20,849,362,714 81.59 243 3,415,252,973 13.36 224 1,290,589,177 5.05 
Note:  non-commercialized Enterprises are not included in table, No. of Enterprises covered by Transformation Law = 2,950 
 "Privatized enterprises" means companies in  which State ownership does not exceed 50 per cent,  The percentage refers to the s hare of private ownership,  "Non-
 privatized" means still government controlled, and the percentage refers to the share of private ownership, Liquidations and b ankruptcies are stated in percentages in 
 relation to each total activity,   WT/ACC/SPEC/HRV/7/Rev.2 
 Page 9 
 
 
Net Proceeds from Privatization 
(DM million) 
   1991 1992 1993 1994 1995 1996 1997 1998* Total 
Cash   4.2 86.6 123.4 208.3 177 269.4 154.7 170.7 1194.3
Bonds for 
Reconstruction** - 48.3 28.1 41.9 1.4 0.5 0.8 0.1 121.1
Swaps with FFCD's  - 157.4 455.6 741.9 257.7 253.7 152.1 37.7 2056.1
Total   4.2 292.3 607.1 992.1 436.1 523.6 307.6 208.5 3371.5
* 1 January -31 July 1998, Cash proceeds include al so earnings from the sale  of PLIVA's shares on 
 international market which were transferred through the CPF account 
** High-yield bonds in hard currency issued by the Ministry of Finance, which can be swapped for  shares at 30 per cent discount 
21. The representative of Croatia added that the Law on Transformation and Privatization of 
Socially Owned Enterprises had also applied to ag riculture.  Former socially-owned farms which had 
not filed requests for "autonomous transformation" had been transferre d to the Croatian Privatization 
Fund.  These farms were currently organized as joint-stock or limited liability companies and managed 
by their respective Management Boards.  Some 180 cooperative enterprises would also be privatized 
under the Law on Farm Cooperatives.  In some cases agricultural enterprises had been divided into 
smaller independent uni ts.  All agricultural trading and proces sing enterprises had been privatized.  
Croatia intended to privatize the entire food procurement and processing system. 
22. Sectors not covered under the Law on Privatization were privat ized under other provisions.  
Shares in banks were sold by their founding institutio ns or, in case of financ ially troubled banks, with 
the assistance of the Agency for Bank Rehabili tation.  The Law on Sea Ports provided for the 
privatization of port services and the award of conces sions;  the actual port wa s regulated by the port 
administration.  Medical services and other activities w ithin hospitals and clinics, but not the property or 
infrastructure, could be privatized in accordance with  the Statute of Conditions for the Lease of Medical 
Facilities for Primary Medical Care and Hospitals.  P ublic educational facilities would be privatized in 
the near future.  The Law on Privatization included a provision on the privatization of public enterprises 
(Article 13, Paragra ph 13).  Decisions had been taken to proc eed with step-by-step privatization of 
Croatian Railways (HZ), Hrvatske Sume (Croatian Forests), the Official Gazette, Croatian Petroleum Company (INA), Croatian Radio and Television Br oadcasting (HRT), Croatian Electricity Company 
(HEP), Croatian Telecommunicatio ns (HT), the Coastal Shipping Company and Plovput (a lighthouse 
company).  The process of privatizing public utilities  and large State-owned en terprises should begin in 
1999.  Each company would be privatized in accordance with a special law to be a dopted by 
Parliament.  The law would determine, for every ente rprise, the share of the company to be privatized, 
i,e, offered to foreign and domestic investors.  I nvestors would be chosen on the basis of public tender 
in a transparent and legally-based manner.  Prior to the adoption of each law, and the initiation of the 
process of privatization, his Government would select  a privatization consultant in an international WT/ACC/SPEC/HRV/7/Rev.2 
Page 10  
 
tendering procedure.  Consultant s for Croatian Telecom and banks (Privredna banka, Splitska banka 
and Riječka banka) had already been selected. 
23. The representative of Croatia said that Cr oatia had also adopted a Law on Compensation for 
Expropriated Assets.  Th e law foresaw the restitution of assets e ither in kind, through shares reserved in 
the Croatian Privatization Fund or by paym ent from the Croatian Compensation Fund. 
24. A member held the view that information provi ded by the representative of Croatia, including 
the information contained in document WT/ACC /HRV/40, was useful but not sufficiently 
comprehensive to cover important aspects of State ow nership and privatization in Croatia.  The Working 
Party should have been informed that, while agricu lture was almost exclusiv ely in private hands, a 
significant number of industries and enterprises remained unde r State control or had been transferred to 
private ownership through a non-transparent and non-co mpetitive privatization process.  This member 
stated that Croatia maintained le gislation which prevente d the privatization of important assets in 
various forms to potential owners of non-Croatian origin.  The same legislation did not recognize 
previously acquired property rights, and prevented the exercise of these rights. 
25. In reply, the representative of Croatia said th at Croatia had responded to questions and issues 
raised by members of the Working Party, and its pr ivatization process had been  described in detail in 
various accession documents.  Croatia's privatization process had been assessed by independent sources 
to be one of the most successful  among countries in transition.  Concerning legislation regulating 
previously acquired property rights, the representative of Croatia said that Croatia did not discriminate 
between Croatian or non-Croatian ow ners of property rights on assets acquired legally in Croatia by 
legal persons.  The only specific limitation was a te mporary ban on the exercise of ownership rights 
on previously "socially-owned" assets located in Cr oatia by legal persons or iginating in the other 
successor countries of the former Socialist Federa l Republic of Yugoslavia (SFRY).  This measure 
had been introduced to prevent privatization of assets acquired under the vague concept of "social 
ownership" until the relevant legal ownership issues had been clarified in each particular case.  
According to former Yugoslav legislation, socially -owned assets could have been acquired without a 
payable legal transaction, for example, when assets were granted to a legal persons by decision of 
local or higher authorities, or the enterprises them selves.  The key issue at hand was to determine 
which assets subject to former social ownership coul d now be considered in private ownership with 
clear title based upon adequate payment for their acquis ition,.  Croatia therefore suggested that strict 
distinction should be maintained between universal  property rights, where Croatia maintained no 
restrictive or discriminatory practice which might divert from MFN practice, and property rights based on the concept of social ownership in form er SFRY.  The representative of Croatia called upon 
the Member in question to acc elerate ongoing bilateral negotiati ons outside the WTO to find a 
mutually acceptable solution that would address the interests and concerns of both parties.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 11 
 
 
26. The representative of Croatia confirmed his country 's readiness to ensure the transparency of its 
ongoing privatization programme and to keep WTO Memb ers informed of its progress in the reform of 
its transforming economic and trade regime.  He stated that his G overnment would provide annual 
reports to WTO Members on developments in its progr amme of privatization as long as the privatization 
programme would be in existence along the lines of that  provided to the Working Party.  He also stated 
that his Government would provide annual reports on other issues related to its economic reforms as 
relevant to its obligations un der the WTO.  The Working Party took note of these commitments. 
Pricing Policies  
27. The representative of Croatia said that price cont rols had been liberalized in recent years.  In 
general, companies determined pr ices freely without any government interference.  Existing controls 
were applied in accordance with the Law on Excepti onal Measures of Price C ontrols.  Direct price 
controls could be prescribed to prevent negative effe cts of changes in prices for basic goods and services 
which had a direct impact on the cost of living, or to prevent monopoly pricing (Article 4).  This 
provision underlined the excepti onal character of direct price controls, which could only be 
implemented for a limited period of time and only if the negative effects could not be eliminated by 
other economic policy measures.  Having introduced su ch controls, the Government was also obliged to 
take appropriate m easures which would eventually allow th e elimination of the price controls. 
28. The Government, upon a proposal by the Minist ry of Economy, could implement direct price 
controls either by fixing maximum prices;  ordering pr ice reductions to a certain level;  or by requiring 
economic agents to report price cha nges in advance.  In case of pr ior reporting of price changes, the 
Ministry of Economy could object to the new prices  within 15 days from the date the prices were 
reported, and request a company to reconsider th e proposed prices.  The Law provided for penalties 
amounting to HRK 5,000-20,000 (US$800-3,000) for co mpanies changing prices against the objections 
of the Ministry, and the Government could order the prices be brought back to the original level.  A 
company objecting to such administrative action coul d institute proceedings and request compensation 
for the damage incurred.  All regulations regarding pr ice control measures were published in the Official 
Gazette of the Republic of Croatia "Narodne Novine". 
29. Government Regulations determined the goods and services subject to these measures.  At 
present, the only direct price controls in force we re obligatory prior reporting of price changes for milk 
for daily consumption;  fertilizers;  wheat flour;  bread type 850;  petroleum products;  natural gas;  
electric energy;  radio and television subscriptions;  transportation of passengers  and freight by local rail 
or maritime line traffic;  standa rd letters and postcards;  telephone impulse and telephone subscription;  
road, bridge and tunnel tolls;  offi cial forms;  roundwood logs; cubic w ood;  and the services of loading 
and transportation of wood sortings.  The producers of goods and services subject to current controls WT/ACC/SPEC/HRV/7/Rev.2 
Page 12  
 
were mainly public utilities or Stat e-owned legal entities.  Goods and se rvices subject to price control in 
Croatia are listed in Table 2. 
Table 2:  Goods and Services Subject to State price control
 
Classification (Harmonized 
System or Common 
Product Classification) Product or Sector  
HS 0401 Milk and cream, not concentrated  nor containing added sugar or other 
sweetening matter, 
HS 1101.00 Wheat or meslin flour, 
HS 2710.0012 ---- lead-free motor petrol 
HS 2710.0013 ---- other motor petrol 
HS 2710.0016 ---- petrol for processing or mixing (primary or base) 
HS 2710.0022 ---- kerosene type jet fuel 
HS 2710.0031 ---- gas oils 
HS 2710.0032 ---- extra light and light special fuel oil 
HS 2710.0033 ---- fuel oils with low sulphur content 
HS 2710.0034 ---- other fuel oils 
HS 2711.11 --Natural gas 
HS 2713.20 - Petroleum bitumen  
HS 2716.00 Electrical energy 
HS 3102 Mineral or chemical fertilisers, nitrogenous, 
HS 3105 Mineral or chemical fertilisers c ontaining two or three of the fertilising 
elements nitrogen, phosphorus a nd potassium; other fertilisers; goods 
of this Chapter in tablets or simi lar forms or in packages of a gross 
weight not exceeding 10 kg, 
HS 4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; 
wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms, 
HS 4403 Wood in the rough, whether or not  stripped of bark or sapwood, or 
roughly squared, 
CPC 9613 Radio and TV services 
CPC 7111; 7112 Transportation of cargo and passengers by domestic railway 
CPC 7442 Highway, bridge and tunnel operation services 
CPC 7211; 7212 Domestic passenger transporta tion by coastal water ferries; domestic 
freight transportation by coastal  water ferries  
CPC 7511 Postal services: standardized lette rs and postcards in the domestic mail 
system  
CPC 7521 Public local telephone services  
CPC 7123 Transportation of timber assortments 
Local self-government bodies can prescribe price control (Article 11 of the Law on Exceptional 
Measures of Price Controls) for : 
HS 2716.00  Heating energy 
CPC 82101; 82102 Housing rents and residential services 
CPC 71211  Urban and suburban regular transportation  
CPC ex 18000 drinking water supply 
CPC ex 94010 Waste water drainage and purification 
CPC ex 887 Gas supply 
CPC ex 94030 Public cleaning 
CPC 94020 Municipal solid waste disposal 
CPC 97090 Maintenance of public grounds  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 13 
 
 
Classification (Harmonized 
System or Common 
Product Classification) Product or Sector  
CPC 97090 Maintenance of not classified roads 
CPC 97090 Management and maintenance of retail sale market places 
CPC 97030 Maintenance of cem eteries and crematories and undertakers services 
CPC 87409 Provision of chimney services 
30. Local administrative bodies we re responsible for direct and in direct price controls of public 
utilities, i,e, central heating, wate r supply, sewage and other sanitary services, distribution of gas, public 
transport, etc.  However, the Gove rnment could prescribe such measur es to prevent market disturbance 
or monopoly behaviour if local admini strative bodies did not take action. 
31. Asked whether the Law on Exceptional Mesu res of Price Controls could authorize the 
application of price controls a nd reporting requirements on prices  of imports and exports, the 
representative of Croatia said that the Law itself  did not include any spec ific article or provision 
regarding price controls on impo rts or exports, but the Government  had adopted a by-law regulation 
which excluded imports and exports from price control measures.  Thus , the current requirement of prior 
reporting of price changes for certain goods and se rvices was not applied to  imports or exports. 
32. The representative of Croatia st ated that the prices of goods a nd services in every sector of 
Croatia were determined freely by market forces with the exception of those noted in Table 2. 
33. The representative of Croatia stated that in th e application of price c ontrols or State guidance 
now or in the future, Croatia would apply such measur es in a WTO-consistent fa shion, and take account 
of the interests of exporting WTO members as provided for in Articl e III:9 of the GATT 1994.  Croatia 
would publish the list of goods and services subject to State controls  any that are introduced or re-
introduced in the future in its Official Journal, in cluding any changes in the list provided of current 
requirements in place.  The Working Party took note of this commitment. 
Competition Policy  
34. The representative of Croatia said that the Law on the Protection of Market Competition had 
been adopted by Parliament on 27 June 1995.  Certai n practices, including price fixing, market sharing 
and tying-in arrangements, were ge nerally or specifically prohibited, but the rule of reason applied and 
group exemptions could be granted, for example for contracts related to spec ialization, exclusive or 
selective distribution, exclusive purchasing, franchising and resear ch and development.  The Law 
applied to all firms operating in Cr oatia regardless of the form of incorporation or ownership.  An 
indicative list of State-owned or public enterprises which could qualify  for exemption was found in an 
Annex to the Law on Public Purchasing.  Howeve r, until now no entities or legal persons owned, 
managed or under the authority of the State had been specifically or explicitly exempted from the Law WT/ACC/SPEC/HRV/7/Rev.2 
Page 14  
 
on the Protection of Market Competiti on.  In response to specific que stions on the regulation of export 
cartels, he confirmed that Article 4 (2) of the Law limited its scope to anti-competitive practices 
affecting the home market provided internationa l agreements signed by Cr oatia did not stipulate 
otherwise.  Croatia had established a Competition Protection Agen cy to enforce legislation.  Cases 
would be decided by its Council. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
35. The representative of Croatia said that the ce ntral Government was res ponsible for a number of 
functions including international re lations, economic policy and customs matters.  Each Ministry was 
responsible for proposing new or am ended legislation within its ar ea of competence.  Following 
approval by the Government draft legislation would be forwarded to Parliame nt for adoption.  Most 
international agreements were subj ect to ratification by Parliament.  International agreements, including 
the Protocol of Accession of Croatia to the WT O once ratified by the Croatian Parliament, would 
become an integral part of the internal legisla tion and would have precedence over domestic laws and 
other acts.  Although the possibility of direct applica tion of international agreem ents in Croatia's legal 
system existed, the WTO provisions were contained in specific laws covering particular areas 
stipulated in the WTO Agreements. 
36. Concerning the right of appeal of administrative decisions, in particular in relation to the 
"independent tribunal" provision of  Article X of the GATT 1994, the representative of  Croatia said 
that the right of appeal was stipulated in the Law on Trade, the Customs Law, the Company Law and 
other laws related to issues addressed in WTO Agre ements.  He confirmed that Croatian legislation 
provided an automatic right of appeal by trader s and other natural and legal persons in all WTO 
related matters.  An appeal by a trader could be  lodged with the High Administrative Court (HAC), 
which was an independent tribunal in accordan ce with Article X of the GATT 94.  The High 
Administrative Court was part of Croatia's regular judicial system. Being part of the judicial branch, 
the HAC was independent from State administrative bodies and the executive branch in general.  The 
role of the HAC was to ensure legal protection of  traders and other legal and natural persons in 
matters related to rulings made by administra tive bodies and agencies.  In doing so, the HAC, 
following an appeal by the plaintiff party, rule d on whether a decision or act issued by the 
administrative body had been made in accordance with  the law and procedures set therein.  Rulings of 
the HAC were final.  Appeals against decisions  or acts of administrative bodies could be lodged 
automatically with the HAC for all WTO issues, ex cept customs and tax related matters.  In such 
cases, the first complaint (or appeal) against an act  or decision issued by the lower administrative 
body (customs office or local tax authority) shou ld be lodged with the central customs or tax 
authorities (the Customs Directorate and the Tax Director ate of the Ministry of Finance).  If the trader 
was not satisfied with the ruling made by the central  authorities, he could file an automatic appeal  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 15 
 
 
with the HAC.  This system provided traders a proce dure of direct appeal of administrative rulings to 
authorities not bureaucratically affiliated with  the agency that had issued the ruling. 
37. [The representative of Croatia confirmed that  from the date of accession Croatia’s laws would 
provide for the right to appeal administrative rulin gs on matters subject to WTO provisions to an 
independent tribunal in conformity with WTO obligations, including Article X:3(b) of the 
GATT 1994.  The Working Party took note of this commitment.] 
38. The representative of Croatia said that Croatia had established a system of local 
self-government and administration based on the Eur opean Charter on Local Self-government.  Within 
this system, Croatia was divided into 21 counties (i ncluding the City of Zagreb), subdivided into 421 
municipalities, 50 townships and two special self-governing di stricts.  The activities  of local government 
units were financed in part from local dues and fe es and income from own assets, in part from fixed 
percentage shares of revenue from the income tax, th e profit tax, a tax on real estate transactions and a 
tax on gambling.  Property taxes collected by the c ounties included taxes on motor vehicles and vessels, 
raised in fixed kuna amounts ranging from the equiva lent of DM 30 to 200 per year for cars, DM 20 to 
100 for motorcycles, and DM 40 to 550 for vessels. 
39. Some Members noted that loca l authorities could levy taxes on  certain goods and services and 
asked what control the central government could exerci se to ensure that the taxation practices of local 
authorities would be consis tent with WTO obligations.  The repres entative of Croatia replied that only 
the central authorities (the Government and Parliame nt) could propose and adopt legislation of any kind, 
including in the area of taxation.   According to the Law on Fundi ng Units of Local Government and 
Administration, local units had the right to collect ta xes, but not to prescribe or levy them.  Thus, as 
local authorities could only collect taxes established by law, their prac tices would be in compliance with 
WTO obligations.  Legal or natura l persons providing catering services paid local and municipal 
consumption tax in accordance with Article 32 of the Law on Funding Units of Local Government and 
Administration.  The tax amounted to maximum 3 per cent of the retail price of beverages sold in 
restaurants, bars, etc. 
40. Decisions on concessional rights were subject to  shared responsibility be tween central and local 
governments.  Concessions were re gulated by the Law on Concessions, unless special st atutes provided 
otherwise, and could be granted for up to 99 years to  a domestic or foreign person.  Decisions on the 
granting of concessions were taken by the House of Representatives (Parliament) on the proposal of the 
Government, and upon the opinion of the local admi nistrative body where the concession would be 
exploited.  Parliament could dele gate the authority to grant concessions to the Government.  The 
decision to grant a concession was required to be based on public bidding or so liciting of tenders to 
select the successful candidate.  Following the deci sion to grant a concession by Parliament or the WT/ACC/SPEC/HRV/7/Rev.2 
Page 16  
 
Government, the executive branch of the of the administrative body conclude d a contract with the 
concessionaire, regulating the condi tions under which a concession coul d be exploited or terminated.  
Special laws could provide different conditions, as an ex emption to this general law, to obtain or exploit 
a concession.  For example, local road concessions were granted by local authorities, and the Law on Sea Ports provided for concessions to be granted by the port authority. 
41. The representative of Croatia confirmed that s ub-central administrative authorities [and entities 
within territory controlled by the Croatian Governme nt], e.g. local administ rative bodies, have no 
[autonomous] jurisdiction or authority to establish regulations [over issu es of subsidies, taxation, trade 
policy or any other measures c overed by WTO provisions][or taxes on goods and services] in Croatia 
independent of the central authorities and that ap plication of these measures are exclusively the 
responsibilities of the execu tive and legislative branches of the ce ntral government.  [He confirmed that 
the provisions of the WTO Agreement, including Croatia's Protocol, shal l be applied uniformly 
throughout its customs territory and ot her territories under its control,  including in regions engaging in 
border trade or frontier traffic, special economic zone s, and other areas where special regimes for tariffs, 
taxes and regulations are establis hed.  He added that when apprised of a situation where WTO 
provisions were not being applied or were applied in a non-uniform manner, central authorities would 
act to enforce WTO provisions without requiring affect ed parties to petition through the courts, 
and][Central authorities] will elimin ate or nullify measures taken by sub-central authorities in Croatia 
that are inconsistent with WTO pr ovisions from the date of accession.   The Working Party took note of 
these commitments. 
POLICIES AFFECTING TRADE IN GOODS Trading Rights
 
42. The representative of Croatia said that Cr oatia had applied temporarily the Law on Foreign 
Trade Operations of the former  Yugoslavia since October 1991.  The Law laid down a number of 
conditions regarding registration of companies, repo rting requirements, restrictions on the right to 
engage in foreign trade, and rules for special trade operations.  The Law on Foreign Trade Operations had been superseded by the Company Law, ente ring into force on 1 January 1995, and the Law on 
Trade, in effect since February 1996.  The Compan y Law contained exhaustive and precise provisions 
concerning the establishment, incorporation and regi stration of stock corporations, limited liability 
companies, general or limited partnerships, and so le proprietorships.  The restrictions or special 
conditions governing foreign trade operations under  the former Law on Foreign Trade Operations had 
been abolished with the new Law on Trade and the Company Law;  for example, companies engaging in foreign trade were no longer required to register se parately with the Commerc ial Court, and companies 
were now free to re-export, import or invest abro ad without approval of the Ministry of Economy.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 17 
 
 
43. The representative of Croatia added that alt hough the former Law on Fo reign Trade Operations 
had limited or conditioned the freedo m of trade, foreign trade had never been subject to State monopoly.  
The State did not restrict the right of persons or en tities to import or export under present legislation.  
The registration criteria to be met by domestic or foreign enterprises and individuals wishing to engage 
in foreign trade were set out in Article 4 of the Law on Trade, providing for free trade and equal market 
conditions. 
44. Croatia maintained no registry of authorized im porters of goods subject to licensing.  In general, 
all companies incorporated for trad e activities or activities using licens ed goods were eligible to apply 
for import licences.  First-time applicants were requi red to submit additional documentation such as the 
registration with the Commercial Court.  Arms traders needed a prior licence to sell arms from the Ministry of Internal Affairs. 
45. A member asked whether Croatia had an activ ity licensing regime and, if so, Croatia was 
requested to describe the criteria applied to receive such a licence, and the procedures used to grant it, with particular reference to (i) ac tivities involving importation;  and (ii) the WTO Agreement on Import 
Licensing Procedures.  In reply, the representative of Croatia said that Croatia maintained an activity 
licensing regime of limited scope for products affe cting public health and sa fety, covering activities 
relating to arms and ammunition, explosive substances, medicines a nd pharmaceutical products, toxins, 
and narcotics.  Companies wishing to do business in th ese areas should obtain an activity licence prior to 
registration at the co mmercial court for such business.  Conditi ons and requirements to be fulfilled by 
enterprises dealing in such pr oducts were stipulated in the Law on Arms, the Law on Explosive 
Substances, the Law on Medicines and Pharmaceutical Products, the Law on Toxins, and the Law on 
Production and Activities with  Narcotics.  Croatia did not charge licensing fees for any business activity.  
Information provided by Croatia on import lice nsing procedures (document WT/ACC/HRV/25) 
indicated, in his view, that Croati a's regime was in full compliance with the WTO Agreement on Import 
Licensing Procedures. 
46. The representative of Croatia confirmed that no restrictions existed on the right of foreign and 
domestic individuals and enterprises to import and export goods and services into Croatia's customs 
territory, except as provided for in WTO Agreements.  He confirmed that indi viduals and firms were 
not restricted in their ability to import or expor t based on their registered scope of business and the 
criteria for registration of companies in Croatia were  generally applicable and published in the official 
journal of Croatia. 
47. The representative of Croatia confirmed that from the date of accessi on Croatia would ensure 
that its laws and regulations relating to the right to trade in goods and all fees, charges or taxes levied 
on such rights would be in full conformity with  its WTO obligations, including Articles VIII:1(a), WT/ACC/SPEC/HRV/7/Rev.2 
Page 18  
 
XI:1 and III:2 and 4 of the GATT 1994 and that it woul d also implement such laws and regulations in 
full conformity with these obligations.  The Working Party took note of this commitment. 
A. IMPORT REGULATION 
Customs Tariff
 
48. The representative of Croatia said that Croatia had been an active member of the World 
Customs Organization since gaining full membersh ip on 1 July 1993.  Croatia had joined the 
International Convention on the Harmonized Co mmodity Description and Coding System on 
26 September 1994.  The Customs Law, the Customs Tariff Law and the Law on Customs 
Administration constituted the legal framework for the customs regime of Croatia.  The right of appeal 
against decisions of Customs was ensured in Articl es 242 to 244 of the Customs Law, and its Articles 
249 to 253 regulated the subsequent settlement of accounts, payment a nd refund of customs duties.  The 
Customs Law had been applied with minor change s since 1991.  A draft new Customs Law was in 
parliamentary procedure and woul d be adopted by June 1999.  The Law contained provisions on 
customs valuation and customs procedures which woul d be in full conformity with the relevant WTO 
Agreements. 
Ordinary Customs Duties  
49. A member asked Croatia to provide a descrip tion on how the current tariff had been formed by 
incorporating miscellaneous border ch arges and import taxes in the original customs tariff, a chart on the 
current structure of the tariff in terms of tariff lin es and duty levels, information on the number of lines 
subject to ad valorem , specific or mixed tariffs, as well as  information on the weighted and simple 
average of the current applied rates. 
50. The representative of Croatia replied that the present Customs Tariff Law had been adopted by 
Parliament in June 1996 and entered into for ce on1 July 1996.  According to the Law, the 
nomenclature of the customs tariff was based on the International Convention on Harmonised 
Commodity Description and Coding System.  The customs tariff consisted of 7,059 tariff lines.  All 
tariff items were subject to ad valorem tariffs, and 590 tariff items were subject to compound rates 
(ad valorem and specific duty).  The ad valorem  rates range from 0 to 25 per cent according to the 
structure described in Table 3.  The simple averag e tariff rate  was 12. per cent, and the weighted 
average tariff amounted to 9 per cent based on 1998 import data.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 19 
 
 
Table 3:  Tariff structure  
Tariff rate (per cent) Number of tariff items 
0 505 
0 – 5 3,038 
5 – 10 828 
10 – 15 883 
15 – 20 1,260 
20 and above 545 
 
51. The Customs Tariff Law had abolished the app lication of non tariff measures, terminating the 
Law on Special Levies on Import of Agriculture and Food Products, and Article 35 of the Customs 
Law (prescribing a 1 per cent customs registration fee on imported goods), as well as a special import 
levy of 10 per cent.  The tariff rates determined by the current Law were governed by the basic 
criteria that (i) tariffs were the only trade policy measure applied to protect domestic industrial and 
agriculture production;  (ii) tariffs were consider ed measures of trade policy, not fiscal measures;  
(iii) tariffs were a function of ec onomic development, in particular, the technological rehabilitation of 
the economy;  (iv) the average tariff should be at th e level applied in other countries in transition;  
(v) rates exceeding 15 per cent were applied only to protect industries and activities seriously damaged by war;  (vi) minimum tariff rates were applied to imported raw materials;  and (vii) all 
non-tariff measures applied to imports were no longer  implemented with the entry into force of the 
Customs Tariff Law. 
Other Duties and Charges Levied on Imports but not on Domestic Production
 
52. The representative of Croatia said that all du ties and charges other than ordinary customs duties 
had been abolished with the introduction of th e new customs tariff on 1 July 1996.  Among the 
abolished duties and charges were a 10 per cent charge  on imports, a 1 per cent customs registration fee, 
and import levies affectin g various agricultural and food products (a list was provided in document 
WT/ACC/HRV/7/Add.1).  The representative of Croatia  confirmed that the authorities of Croatia and 
the Former Yugoslav Republic of Macedonia had agre ed that Croatia would eliminate its 1 per cent 
customs duty at the latest by the date of access ion, and the Former Yugos lav Republic of Macedonia 
would eliminate its 1 per cent customs evidence fee as from 1 January 2000.  He further confirmed that 
a 1 per cent customs evidence fee on imports from th e Federation of Bosnia and Herzegovina had been WT/ACC/SPEC/HRV/7/Rev.2 
Page 20  
 
abolished on 15 May 1999 when MFN trade had been  reintroduced between Cr oatia and Bosnia and 
Herzegovina. 
53. The representative of Croatia confirmed that Croatia levied no duties and charges on imports 
other than ordinary customs duties.   Any such charges applied to imports after accession would be in 
accordance with WTO provisions.  He further confir med that Croatia would no t list any other charges 
in its Goods Market Accession Schedule under Article II:1(b) of the GATT 1994, binding such 
charges at "zero". 
Tariff Rate Quotas, Tariff Exemptions
 
54. The representative of Croatia said that the Customs Law provided the legal framework for the 
establishment of tariff rate quotas, on an MFN basis,  in exceptional cases.  Tariff rate quotas were 
introduced by special regulation adopted by the Govern ment.  Croatia had implem ented tariff rate quotas 
as part of its free trade agreements with Sloveni a and the Former Yugoslav Republic of Macedonia.  
These tariff rate quotas we re applied for agricultural and food pr oducts.  Administration and allocation 
of the tariff rate quotas were based on three criteria  which were always combined;  (i) allocation to 
traditional traders, with at  least 10 per cent reserved for new entr ants, (ii) regional criteria (equal 
treatment of importers from all Croatia's regions),  and (iii) the needs of  the domestic processing 
industry.  In the future, the main crit eria would be first come/first served. 
55. The representative of Croatia said that exemptions from payment of customs duty could be 
granted in accordance with the pr ovisions and procedures of the Cu stoms Law.  Article 18 of the 
Customs Law established regulations for goods not subject to customs payment such as goods in transit, 
international tender documents and other printed or recorded materi al related to culture, science, 
education, etc.  Further exemptions were outlined in Articles 24 to 33 for items imported by foreign 
diplomatic and consular offices in Croatia in accorda nce with their needs and requirements for official 
purposes;  articles for personal us e when travelling abroad;  goods rece ived for free from abroad by legal 
or natural persons;  goods destined for disaster reli ef and humanitarian purpos es;  and importation of 
industrial and other equipment related to foreign inve stment (Article 29).  Exemptions could also be 
granted under Article 54 - imports on the basis of tariff quotas - and Article 59 (commitments under 
international agreements).  He adde d that the tariff exemptions were non-discriminatory and of a general 
nature. 
Fees and Charges for Services Rendered  
56. The representative of Croatia said that Croatia charged a stamp tax at a flat rate of HRK 60 per 
customs declaration (HRK 50 for the declaration,  and HRK 10 for the registration document) in 
accordance with the Law on Administrative Fees .  The stamp tax covere d registration of the  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 21 
 
 
consignment, documentation control,  registration and certification of  documents, inspection of the 
vehicle and goods, data entry, calcula tion of duties and taxes, and issuance of the receipt.  In addition, a 
1 per cent ad valorem fee had been levied on the basis of Article 35 of the Customs Law.  The fee 
represented the cost of record-keeping at customs.   The ad valorem customs registration fee had been 
abolished in the new Customs Tariff Law on 1 July 1996.  He confirmed that Croatia did not require 
consular authentication or re gistration of customs documents in the country of origin. 
57. Asked to list by HS tariff line numbers produc ts subject to taxes and administrative charges for 
environmental purposes, the representative of Croati a said that imported waste was subject to an 
administrative tax of HRK 20,000.  This tax was not  levied on each consignment, but charged when a 
licence, valid for one year or more, was issued by the State Directorate for Environment.  Domestic enterprises dealing with waste and hazardous waste were s ubject to a stamp tax of HRK 1,000.  Imports 
classified as waste were determined in accordance with the Law on Waste and relevant international 
conventions such as the Basle Convention.  Having considered comments by members, his Government 
had issued a new Decision on 24 June 1999, reducin g the stamp tax for importation and exportation of 
waste to HRK 2,000.  The represen tative of Croatia confirmed that  all imported industrial goods not 
classified as waste in regular customs clearance procedure were not, and would not be, subject to 
administrative fees and additional taxes for environmental purposes. 
58. The representative of Croatia confirmed th at, from the date of accession, Croatia would 
impose any fees or charges for services rendered related to im portation or exportation only in 
conformity with Article VIII of the GATT 1994.  In formation regarding the application and level of 
any such fees, revenues collected  and their use, would be provided to WTO Members upon request.  
The Working Party took no te of these commitments. 
Application of Intern al Taxes to Imports
 
59. The representative of Croatia said that certain products - coffee, coffee husks and skins, coffee 
substitutes containing coffee, al coholic and non-alcoholic beverage s, tobacco and tobacco products, 
motor vehicles, motorcycles, vessels, aircraft for pr ivate use and petroleum products - were subject to 
excise tax  in accordance with the provi sions of the Law on Special Taxes on Products and the Law on 
Excise Duties on Automobiles and other Motor Vehicl es, Vessels and Aircraft.  He acknowledged that 
excise taxes on beer, non-alcoholic  and alcoholic bevera ges, tobacco and tobacco products had 
differentiated between imported and domestically-produced goods until January 1998.  Parliament had 
adopted the Law Amending the La w on Excise Taxes on Alcoholic Be verages in October 1998, and the 
Law Amending the Law on Excise Taxes on Tobacco  and Tobacco Products on  18 June 1999.  The 
amended Law had been applied since 1 July 1999, thus  bringing all excise taxe s into conformity with WT/ACC/SPEC/HRV/7/Rev.2 
Page 22  
 
Article III of the GATT.  The products subject to ex cise taxes and the respective tax rates per July 1999 
are enumerated in Table 4. 
 Table 4:  Excise Taxes in Cr oatia (rates applied in July 1999)
 
  
Product description Tax rate (in kuna) 
Coffee, per kg:  
 Non-roasted coffee 3.60 
 Roasted coffee 9.00 
 Coffee husks and skins 12.00 
 Coffee substitutes c ontaining coffee 15.00 
Non-alcoholic beverages, per hl:  
 Domestic 40.00 
 Imported 40.00 
Beer (alcoholic), per hl:  
 Domestic 80.00 
 Imported 80.00 
Beer (non-alcohol – max 0,5 per cent vol), per hl:  
 Domestic 40.00 
 Imported 40.00 
Alcohol and alcohol ic beverages:  
 Domestic, per litre absolute alcohol 40.00 
 Imported,  " " " 40.00 
Tobacco and tobacco products:  
 Tobacco (domestic and imported), per kg 35.00 
 Cigarettes:  
  Group A*- Popular group (domestic and imported) 3.90 
  Group B*- Standard group (domestic and imported)    4.30 
  Group C *- Extra group (domestic and imported) 7.00 
 Cigars, domestic and imported, per piece 1.00 
 Cigarillos, domestic an d imported, 20 pieces 4.00 
Petroleum products (both domestic and imported):  
 Petrol, types such as MB-98, MB-86  2.10 
 Petrol, types such as BMB-98, BMB-95,  BMB-91 1.80 
 Diesel, such as D-i, D-2, D-3 1.60 
 Heating oil - extra light  and special light 0.30 
Automobiles:  
 Power 55-75 kW 
 "  Power 75-90 kW  "  Power 90-110 kW 
 " 
 Power more than 110kW  " - 
- - - - 
- 
- - new 
used new used new 
used 
new used 3,000.00 
2,000.00 7,000.00 5,000.00 
15,000.00 
11,000.00 
30,000.00 22,000.00 
  
  
                                                      
* The characteristics of classification into the gr oups A, B and C are set according to the Law on 
Tobacco 
   WT/ACC/SPEC/HRV/7/Rev.2 
 Page 23 
 
 
Product description Tax rate (in kuna) 
Motorcycles 
engine power in kW 
more than not exceeding  
6 20 2,000.00 
20 55 4,000.00 
55 75 7,000.00 
75  10,000.00 
Vessel without cabin  
length in meters 
more than not exceeding  
8 12 6,000.00 
12 15 12,000.00 
15  24,000.00 
Vessel with cabin  
length in meters  
more than not exceeding  
8 12 15,000.00 
12 15 45,000.00 
15  90,000.00 
Aircraft for private use  
number of seats  
more than not exceeding  
1 4 7,000.00 
5 12 35,000.00 
13 50 75,000.00 
50  150,000.00 
 
60. Asked about the taxation of used automobiles, th e representative of Croati a said that excise duty 
on all products liable to such duty was paid when th e product was distributed for the first time in the 
Croatian market, any further resale was charged VAT only. 
61. The representative of Croatia said that goods and services had been subject to turnover tax 
pursuant to the provisions of the Law on the Turnover Tax of Products  and Services until the end of 
1997.  The turnover tax had been replac ed by value added tax, levied at a single rate of 22 per cent, with 
the entry into force of the Law on Value Added Ta x on 1 January 1998.  The Law on Value Added Tax 
provided full national treatment.  Businesses, wh ose turnover did not exceed HRK 85,000 (in the 
previous year, after certain deductions), c ould opt to be exempt from paying VAT. 
62. Exempt from payment of VAT in domestic trade (Article 11) were house rents (residential);  
banks, saving banks, credit and saving institutions as well as in surance and reinsurance companies;  
medical services, dentist a nd similar services provided as private pr actice;  medical services in health 
institutions;  services and goods delivered by pr e-school, elementary school , secondary and high school 
and similar institutions and social care instituti ons;  and services provided and goods delivered by WT/ACC/SPEC/HRV/7/Rev.2 
Page 24  
 
religious communities and institutions, and cultural  and similar institutions.  He confirmed that VAT 
exemptions for services such as medical and educatio nal services were applied equally to domestic and 
foreign service suppliers in all four modes of delivery. 
63. Real estate transactions, except new construction;  company shares;  land;  and money and 
securities transactions and deliveries were exempt fr om the value added tax.  Also exempt from VAT 
were certain imported goods and go ods in transit, namely temporary imports of goods exempt from 
customs duty;  imports of humanitarian aid, except petroleum and petroleum products, tobacco, 
tobacco products, alcohol and alcoho lic beverages;  imports of bulli on by the Croatian National Bank;  
imports of foreign legal means of payment, secu rities and company shares; and transit of goods 
through the customs territory of the Republic of Cr oatia.  All exported goods we re exempt from value 
added tax.  The representative of Croatia confirmed that Croatia levied only customs tariffs, VAT and 
excise taxes on imports. 
64. The representative of Croatia stated that, fro m the date of accession, Croatia will apply its 
domestic taxes, including those on pr oducts listed in Table 4, in compliance with Articles I and III of 
the GATT 1994.  The Working Party took note of this commitment. 
Quantitative Import Restrictions, including Pr ohibitions, Quotas and Licensing Systems.
 
65. The representative of Croatia said that the Law on Trade contained provisions in Articles 40 
to 43 regarding the imposition of impo rt quotas, including for the purpose of protecting infant industries.  
In view of Croatia's situation in the post-war pe riod, and the level of economic development, the 
Croatian Government had considered itself entitled  to recourse to GATT Article XVIII, but as the 
economic situation had improved the Government ha d decided not to invoke GATT Article XVIII, and 
the provisions of the Law on Trade had been changed accordingly.  The provisions in Article 40, which had authorized the Government to in troduce quantitative import restrictions for the protection of infant 
industries, had been abolished through the Law Am ending the Law on Trade (A rticle 14), adopted on 
30 June 1999. 
66. A number of members agreed that it would be both appropriate and useful for Croatia to 
consider its industry development needs in the proces s of negotiating its accession to the WTO.  Planned 
policies to develop industries th rough trade measures should be ma de known prior to accession, and 
industry protection needs should be taken into accoun t during the market access /tariff negotiation phase 
of an accession.  However, it would be neither appropriate nor useful for an applicant for WTO 
accession to seek accession on the basis that it ex pected to have recourse to import quotas under the 
infant industry provisions under the GATT 1994.  The Multilateral Trading System allows for industry  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 25 
 
 
protection through tariffs rather than  through quantitative rest rictions, and this s hould be reflected in 
Croatia's accession commitments. 
67. The representative of Croatia added that his Government had adopted a Decree on 12 July 1996, 
abolishing all import quotas with immediate effect .  The abolition completed a process, begun in 1994, 
of reducing the number of products s ubject to import quotas.  Quantita tive restrictions had been imposed 
on certain agricultural products, some foodstuffs, te xtile fibres, cement, iron and steel products, and 
machinery to facilitate the establishment of a market economy and assist areas damaged by war.  Asked 
about a temporary limitation/ban on su gar imports, the representative of  Croatia said that the import ban 
on sugar was lifted on 2 May 1998 (Official Gazette No. 60/1998). 
68. The representative of Croatia provided informa tion on import licensing procedures in document 
WT/ACC/HRV/25.  The most recent  decision on goods subject to impor t licences had been passed by 
the Government on 12 July 1996 in accordance with Article 46 of the Law on  Trade (Table 4 - see 
Annex).  The licensing system could not be abolishe d without legislative appr oval under Croatia's legal 
system.  He added that import lice nces applied to the usual products a llowed by Articles XX and XXI of 
the GATT 1994.  In accordance with the Law on Trade, licences could be prescribed for the purpose of 
fulfilling international agreements, ensuring State se curity, the protection of human, animal and plant 
health and protection of the environment, maintenance of public morals, and to control trade in works of 
art and precious metals.  Import licences were compulsory for tanks, war vessels, military arms, 
revolvers, pistols, guns, parts and eq uipment for arms, ammunition, swor ds and sabres, nuclear reactors, 
radioactive materials, isotopes, de rivatives, hydrocarbons, mint postage stamps, gold, coins, iron tubes 
and bars, and tractors (more than five years of age).  The licences were issued by the Ministry of Economy, which was also the licensing authority for imports of substances af fecting the ozone layer 
(Montreal Convention).  In addition, drugs and medical products, glands and other organs, vaccines, drugs, pharmaceutical goods, dialysis  appliances, and narcotics were subject to licences issued by the 
Ministry of Health;  imports of veterinary drugs  and vaccines were licensed by the Ministry of 
Agriculture and Forestry;  and the State Office for St andardization and Metrology issued import licences 
for certain scales and measuring instruments.  The Ministry of Maritime Affairs, Transport and 
Telecommunications was the licensing authority fo r imports of telecommunications instruments and 
appliances such as transmitters, radars, radio remote  controls and radio naviga tion equipment.  Licences 
for imports of armaments and milit ary equipment for the Croatian Army and Croatian Police were 
issued by the Ministry of Defence and the Ministry of Internal Affa irs.  The licensing regime applied 
equally to imports from all countries. 
69. The purpose of the licensing regime was to  monitor and control im port and export of goods 
which for various reasons were classified as sensitiv e, and Croatia had no intention to limit the quantity 
and value of imports, except as provided for in intern ational conventions such as the Montreal and Basel WT/ACC/SPEC/HRV/7/Rev.2 
Page 26  
 
Conventions.  Import licences for combine harvesters had been abolished in 1997.  The Government had 
reviewed the import situation for other products in 1998, and had decided to a bolish import licences for 
iron tubes and bars as from 1 January 1999.  He adde d that the import licences for iron tubes and bars 
had been temporary surveillance lice nces, issued to gather trade data.  Import licences for precious 
metals and coins were granted auto matically and immediately upon request. 
70. Licence applications were submitted to no more than one administrative body.  The amount and 
type of information to be submit ted was stipulated in the Decision on goods subject to import and export 
licences.  As the licences carried no limitation on the quantity or value of imports, applications could be 
submitted until the very moment of importation.  The validity of a licence could be extended upon 
request of the licence holder.  An administrative fee of HRK 1 25.00 was charged for each import 
licence, Licences were not transferable between importe rs.  Applications could on ly be rejected if the 
importer did not fulfil the conditions stipulated in international conventions for specific goods or did not 
meet standard criteria for the transportation of ce rtain goods.  An importer denied an import licence 
could file an administrative lawsuit with the Ad ministrative Court of the Republic of Croatia. 
71. A member was concerned about reports that Croatia had banned  importation of certain products 
(pork, wheat, flour, sugar, etc,), and imposed add itional restrictions on steel,  particularly as these 
appeared to be recent measures.  Acceding countries were  expected to observe WTO provisions from 
the time of application, and Croatia would need to de monstrate tangibly that prev ious measures for trade 
regulation had been permanently discarded.  The repr esentative of Croatia replied that temporary import 
bans on pork, wheat, flour and sugar had been abolis hed.  He confirmed that all previous restrictive 
measures for import regulation had been permanently discar ded, and that there were no bans, 
quantitative restrictions, or restrictive licensing require ments on imports at present.  Licences were still 
applied on iron tubes and bars imported from non-WTO members. 
72. The representative of Croatia confirmed that, after accession, Croatia would take recourse to 
quantitative import restrictions only in situations envisaged in WTO Agreements, including Article XII 
of the GATT and according to the WTO Agreement on Safeguards. 
73. The representative of Croatia confirmed that  Croatia would, from the date of accession, 
eliminate and shall not introduce, re-introduce or ap ply quantitative restrictions on imports, or other 
non-tariff measures such as licensing, quotas, bans, permits, prior authorization requirements, 
licensing requirements and other restrictions having equivalent effect that cannot be justified under 
the provisions of the WTO Agreement.  He furt her confirmed that the legal authority of the 
Government of Croatia to suspend imports and expo rts or to apply licensing requirements that could 
be used to suspend, ban, or otherwise restrict th e quantity of trade will be applied from the date of 
accession in conformity with the requirements of the WTO, in particular Articles XI, XII, XIII, XVIII,  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 27 
 
 
XIX, XX and XXI of the GATT 1994, and the Mu ltilateral Trade Agreements on Agriculture, 
Application of Sanitary and Phytosanitary Measu res, Import Licensing Procedures, Safeguards and 
Technical Barriers to Trade.  The Worki ng Party took note of these commitments. 
Customs Valuation  
74. The representative of Croatia provided inform ation on the implementation and administration of 
the customs valuation agreement in document WT/ACC/HRV/19.  Rules on customs valuation were laid 
down in Articles 36 to 48 of the Customs Law of the Republic of Croatia a nd implemented through the 
Statute on the Conditions and Method of Determining Ta riff Bases (the Statute).  Both regulations had 
been assumed from the former Yugoslavia (which ha d joined the GATT in 1973) .  Article 36 (1) of the 
Customs Law stipulated customs valu ation based on transaction values. 
75. A member stated that Croatia's legislation wa s not fully consistent with the Agreement on the 
Implementation of Article VII of  the General Agreement on Tariffs and Trade 1994 (the Customs 
Valuation Agreement), in particular with respect to (i ) Article 2 - the use of transaction value of identical 
merchandise when customs value could not be dete rmined under the provisions of Article 1 of the 
Agreement;  (ii) the prohibitions in the Agreement regarding the determination of customs value based 
on the acceptance of the higher of two alternative valu es or minimum customs values;  and (iii) a system 
of reference prices esta blished under Article 44 of the Customs Law.  The representative of Croatia 
replied that the first point of appa rent non-conformity with WTO rules was due to a translation error.  
He acknowledged that the Customs Act did not explic itly prohibit the acceptance of the higher of two 
alternative values, however, in practice the lowe st value was chosen.  The Customs Law would be 
amended to include all prohibitions contained in Article 7.2 of the Agreement, including a ban on 
minimum customs values.  In his view, Article 44 of the Customs Law did not provide for a reference price system.  A valuation list had been intended for information purposes and to facilitate the work of 
Customs in its fight against fraud, howeve r, no such list had been established. 
76. On a further point of clarification he stated th at according to Article 10 of the Customs Law, test 
values would only be used in tran sactions between related parties at  the request of the importer, as 
provided for in Article 2.1(b) of the Customs Valu ation Agreement and the co rresponding Interpretative 
Note of the Customs Valuation Agreement.  He theref ore considered Croatian legislation to be in full 
conformity with the WTO.  His authorities were not familiar wi th the 1984 Decision on the Treatment of 
Interest Charges in the Customs Value of Import ed Goods.  The Customs Law would be revised to 
include the operative Interpretative Notes to th e Customs Valuation Agreement and to align its 
Article 36 (5) and 41 more closely with Article 8 of the Agreement. WT/ACC/SPEC/HRV/7/Rev.2 
Page 28  
 
77. Some members sought a commitment from Croa tia to apply fully Ar ticle VII and the WTO 
Agreement on the Implementation of the Article VII,  including the Interpretive Notes, from the time of 
its accession to the WTO.  In their view, Croatia should accede to the WTO without recourse to any 
special and differential treatmen t provisions of Article 20 and An nex III of the Customs Valuation 
Agreement.  Croatia was also asked to provide specif ic information on the procedures invoked to ensure 
full compliance with Article 13 of the Agreement on  Customs Valuation pertaining to the ability of 
importers to withdraw goods from customs even thou gh the final valuation determination had not been 
made. 
78. The representative of Croatia confirmed that  Croatia would be implementing fully the WTO 
Agreement on the Implementation of Article VII of the GATT 1994 from the date of accession.  Croatia 
would appreciate technical assistance form WTO memb ers in changing its legisl ation related to customs 
valuation. 
79. A member commended Croatia for its efforts to implement fully the WTO Customs Valuation 
Agreement upon accession, and looked forward to re viewing draft legislation at the earliest 
opportunity.  Croatia was specifically requested to in corporate in its new legislation the provisions of 
Decision 4.1, of the Committee on Customs Valuat ion concerning the "Valuation of Carrier Media 
Bearing Software for Data Processing Equipment" and the "Decision on the Treatment of Interest 
Charges in the Customs Value of Imported Goods '';  provisions covering currency conversion, 
confidentiality, the right of appeal and transparency (Articles 9-12 of the Agreement);  the text of the 
"Interpretative Notes to the Valuation Agreement";  and to ensure that all the prohibited forms of 
valuation were explicitly listed in the text of the new law. 
80. In reply, the representative of Croatia said th at the customs valuation provisions in the new 
Customs Law were in conformity with Ar ticle VII of the GATT and the Agreement on 
Implementation of the Article VII of the GATT 1994.  Although the new Customs Law, passed by 
Parliament on 30 June 1999, was set to enter into force on 1 January 2000, its provisions relating to 
customs valuation would be applied as of July 1999.  The Law incorporated provisions covering currency conversion, confidentiality, the right of appeal and transparency, as well as the Decision of 
the Committee on Customs Valuation concerning the tr eatment of interest charges in the customs 
value of imported goods (in Article 39, paragra ph 1(c)), and the Decision concerning valuation of 
carrier media bearing software for data processing e quipment (in Article 43).  Articles 9 and 10 of the 
Agreement had been incorporated in Articles 47 and 45, respectively, of the new Law.  Article 44, paragraph 4 of the Law incorporated Article 11 of  the Valuation Agreement, and Article 12 of the 
Valuation Agreement was incorporated in Article 44,  paragraph 5 of the Law.  The prohibited forms 
of valuation were explicitly listed in Article 37 of the new Customs Law.  The text of the 
"Interpretative Notes to the Valuation Agreement"  would be incorporated in a Regulation, which  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 29 
 
 
would be adopted following the entry into force of the new Customs Law.  This regulation would 
stipulate further detailed conditions and pro cedures for determining customs valuation. 
81. Having examined the draft Customs Law in view  of the requirements of the Customs Valuation 
Agreement, a member pointed out that provisions prov iding for the right of appeal without penalty to a 
judicial authority were unclear, and that the draft Law did not indicate how Cr oatia would implement its 
transparency obligations.  Croatia had also failed to  implement fully the Interpretative Notes set forth in 
Annex 1 of the Agreement.  Articl e 46 of the draft Law - which allowed the establishment of "special 
rules for determining the customs value of goods" - wa s unacceptable, and Articl e 41.1 of the draft Law, 
in particular the term "counter-value", needed fu rther clarification.  A statement in Article 44.1 
regarding transaction value was not technically accurate , and should be deleted. 
82. The representative of Croatia replied that Article 44 of the draft Customs Law had been 
revised to provide for the right of appeal in accordance with Article 11 of the Customs Valuation 
Agreement.  Article 12 of the Agreement (transpa rency) was included in Article 44,5 of the new 
Customs Law.  Articles 44.1 and 46 of the draf t Law had been deleted, and the language in 
Article 41.1 had been revised.  Croatia would includ e the Interpretative Notes set forth in Annex 1 of 
the Customs Valuation Agreement in its implementi ng regulations, to be enforced as from July 1999. 
83. The representative of Croatia confirmed that  Croatia would fully apply the WTO provisions 
concerning customs valuation from the date of acc ession without recourse to a transition period, 
including the Agreement on the Implementation of Ar ticle VII of the GATT 1994.  In this regard, 
minimum import valuation provisions had been el iminated and the new Law and its implementing 
regulations incorporated Annex I (Interpretative No tes) and provisions for the Valuation of Carrier 
Media Bearing Software for Data Processing Equipm ent (Decision 4.1).  The Working Party took note 
of these commitments. 
Rules of Origin  
84. A member noted that Croatia was developing rules of origin to ensure conformity with the 
WTO Agreement on Rules of Origin and requested a description of the rules to be used for non-
preferential and preferential trade.  Croatia was also  asked to describe how it would meet the obligations 
under the WTO Agreement on Rules of Origin for i ssuing binding assessments of origin, both for non-
preferential and for preferential regimes, within 150  days of requests by e xporters and importers, as 
provided under Article 2 (d) of the Agreement and Annex II, and outline the process of appeal against determinations of origin. 
85. The representative of Croatia said that the basi c principles of rules of  origin were regulated 
under Articles 25 and 26 of the La w on Trade.  The Government had adopted a new Regulation on WT/ACC/SPEC/HRV/7/Rev.2 
Page 30  
 
Rules of Origin on 24 June 1999.  The new regulati on, taking into account achievements within the 
World Customs Organization on harmonization as we ll as the regulations and experience of WTO 
Members, complied fully with the relevant WTO provisions.  The rule s of origin were described and 
explained in detail in the new regulations, notably the criteria for determining "essential change".  The 
last essential changes conferring origin according to the present regulation involved either a change of 
tariff heading in relation to the non-originating materi als used in the production of finished products, or 
non-originating materials not exceeding 50 per cent of th e total value of the finished product.  Fulfilment 
of one or the other criterion wa s sufficient in conferring origin.  A regulation including company 
headquarters location among the requirements in de termining product origin was valid only in the 
context of preferential duty treatment,  and had not been applied since 1993. 
86. Asked to provide further details on Croatia's pr eferential and non- preferential rules of origin 
contained in new regulations in prep aration, the representative of Croa tia said that his Government was 
waiting for harmonized rules of origin to be work ed out in the WTO and WCO so that arrangements 
worked out at the international level could be included in Croatia's regulations.  Croatia submitted a translated copy of its regulations concerni ng rules of origin to the Working Party. 
87. The representative of Croatia confirmed that Croatia would remedy any departures from full 
conformity with the WTO Agreement on Rules of Orig in prior to its accession, and that by that time, 
Croatia's application of rules of origin for both MF N and preferential trade would be administered in 
conformity with the provisions of the Agreement.  Croatia would adopt the Harmonized Rules of Origin 
once finalized by the WTO in co-operatio n with the World Customs Organization. 
88. The representative of Croatia confirmed that fro m the date of accession its  laws and regulations 
on rules of origin would be in conformity with the provisions of the Agreement.  In this regard, the 
requirements of Article 2(h)  and Annex II, paragraph 3(d), i.e., that  for non-preferential and preferential 
rules of origin, respectively, its customs authority  or preshipment inspection authority acting on its 
behalf will provide upon request an assessment of the origin of the import and outline the terms under 
which it will be provided.  The Worki ng Party took note of this commitment. 
Other Customs Formalities
 
89. The representative of Croatia said that goods  submitted for customs clearance were at the 
disposal of the importer upon payment of customs duty .  An importer could be allowed a five-day period 
to pay the duty provided a Customs Guaran tee was submitted to the customs office. 
90. A member, referring to press reports indicating that a consider able quantity of goods had been 
arriving in Croatia without payment of customs duti es through the border with the Bosnian Federation, 
stated that it was critical for the accession process that Croatia address the issue of uniform application  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 31 
 
 
of its customs regime vis-à-vis othe r countries.  This member reques ted a report from Croatia on how it 
planned to implement strict customs enforcement at it s borders prior to WTO accession.  In reply, the 
representative of Croatia said that  his Government had taken concrete  steps directed towards enforcing 
strict implementation of rules of origin in trade wi th Bosnia and Herzegovina under the bilateral Free 
Trade Agreement, in spite of protests and border crossing blockades on the Bosnian side of the border 
by farmers from Bosnia and Herze govina.  Furthermore, steps had b een taken to improve co-operation 
and the exchange of electronic information betwee n the customs offices of Croatia and Bosnia and 
Herzegovina.  Together with Bosnia and Herze govina, and with World Bank Funding, Croatia was 
preparing measures aimed at impr oving border-crossing infrastructure, decreasing the number of border 
crossings and bringing the bilateral free trade le gislation in line with WT O standards and national 
legislation.  He therefore concluded that the Croati an authorities had regained full customs and security 
control of the border with Bosnia and Herzegovina.  The border and customs regime with Bosnia and 
Herzegovina now resembled closely the regime prevailing at Croatia' s borders with other countries. 
91. A member commended Croatia for recognizing that its current customs control with the 
Federation of Bosnia and Herzegovina was inade quate and inconsistent with WTO provisions, and 
Croatia's intention to enforce WTO provisions an d the terms of its accession package within its 
customs territory.  This member requested Croatia to report on specific steps taken to regularize the 
current WTO-inconsistent customs regime in place.  Croatia was urged to strictly define its customs 
territory vis-à-vis the Federation of Bosnia and He rzegovina and reminded that Croatia's inability to 
do so would bring into question its ability to enforce WTO Agreements in area such as taxes, charges, 
non-tariff requirements, intellectual property prot ection and MFN application of standards and 
sanitary requirements, and would also put into qu estion the value of MFN commitments undertaken in 
market access negotiations. 
92. Another member drew the attention of the Wo rking Party to the question of current practices 
in the application of rules of origin in custom s procedures on the border between Croatia and Bosnia 
and Herzegovina.  Preferential rules of origin applied to goods originating in one part of the territory 
of Bosnia and Herzegovina, and to goods regarded as originating in Croatia a nd exported to that part 
of the territory of Bosnia and Herzegovina.  In th e view of this member, this practice resulted in 
different customs treatment of goods in trad e between Croatia and Bo snia and Herzegovina. 
93. The representative of Croatia acknowledge d that the Free Trade Agreement and the 
accompanying preferential rules of origin covering tr ade with one part of Bosnia and Herzegovina did 
not meet the requirements of Article XXIV of GATT 1994.  The 1995 Agreement on Economic 
Cooperation had been abolished on 15 May 1999, thereby reintroduc ing MFN-based trade until a new 
Free Trade Agreement would be concluded with  Bosnia and Herzegovina as a whole.  His 
Government had proposed to the Council of Minister s of Bosnia and Herzegovina to negotiate a Free WT/ACC/SPEC/HRV/7/Rev.2 
Page 32  
 
Trade Agreement covering substantially all trade be tween Croatia and the whole territory of Bosnia 
and Herzegovina.  His Government expected the new FTA to be signed and implemented prior to 
Croatia’s accession to the WTO.  He confirmed that, irrespective of whether or not Croatia and 
Bosnia conclude an FTA, Croatia's  treatment of imports from all pa rts of Bosnia and Herzegovina 
would correspond to its WTO obligations, and that im ports would receive equal treatment as provided 
for in Article I of the GATT. 
94. The representative of Croatia confirmed that Croatia was in a position to implement strict 
customs enforcement on all its borders, including the border with Bosnia and Herzegovina.  The 
customs territory of the Republic of Croatia, within  which the customs regulations and controls were 
enforced, corresponded exactly to the territorial bound aries of the Republic of Croatia.  He confirmed 
Croatia's determination to enforce WTO provisions, rules and disciplines and the terms of Croatia’s 
WTO accession package within these boundaries to  ensure proper implementation of all WTO 
principles, in particular the principle of uniform application of Croatia's customs regime towards all 
countries according to the MFN clause,  prior to the accession to the WTO. 
Anti-Dumping, Countervailing Duties, Safeguard Regimes
 
95. The representative of Croatia said that th e new Law on Trade contained provisions on anti-
dumping measures (Articles 48 a nd 49), countervailing duties (Article  50) and safeguard measures 
(Articles 38 and 39).  Moreover, Arti cle 40 of the Law on Trade authorized the Government to introduce 
import quotas inter alia as safeguard  measures.  Article 55 of the Customs Law, intended as a safeguard 
clause allowing the imposition of a 15 per cent specia l customs protection duty, had never been applied, 
and had been deleted in the new Customs Law.  He confirmed that no other provisions in existing or 
draft legislation dealt with  trade remedy measures. 
96. A member noted that Croatia's legislation in th e anti-dumping area was not  fully consistent with 
WTO requirements, notably regardi ng the determination of dumping.  The representative of Croatia 
acknowledged that Article 48 of the Law on Trade was not compatible with Article 2 of the Agreement 
on the Implementation of Article VI of the Ge neral Agreement on Tariff s and Trade 1994 (the 
Anti-Dumping Agreement) with respect to the defi nition of the substantive criteria for assessing 
dumping.  Article 48 would accordingly be revise d to ensure WTO conformity.  He added that 
Article 49 would also be amended to bring it into  conformity with the "standing requirement" of 
Articles 4 and 5 of the Anti-dumping Agreement.  He  stressed that the anti-dumping provisions in the 
Law on Trade could not be applied in the absence of a special implementing regulation.  This regulation, 
covering the anti-dumping procedure and the conditions for the application of the additional duty, would 
be in compliance with th e Anti-Dumping Agreement.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 33 
 
 
97. Regarding the imposition of countervailing m easures, a member noted that the Law on Trade 
did not provide for an injury requirement, nor did it appear to differentiate between so-called actionable 
and non-actionable subsidies within  the meaning of Article 8 of the Agreement on Subsidies and 
Countervailing Measures.  The represen tative of Croatia replied that an  injury criterion and a provision 
relating to the treatment of non-ac tionable subsidies had been insert ed in the Law Amending the Law on 
Trade, adopted by Parliament on 30 June 1999. 
98. Noting that Croatia planned to introduce detailed  regulations for the application of safeguard, 
anti-dumping and countervailing measures, a member aske d that legislation author izing Croatia's use of 
trade remedies be submitted to the Working Party fo r review and comment.  This review should take 
place prior to the completion of Croatia's accession to  ensure the conformity of the legislation with 
WTO provisions.  In reply, the representative of Croatia said that the Law Amending the Law on Trade 
would harmonize provisions regarding the applicatio n of safeguard, anti-dum ping and countervailing 
measures to incorporate fully th e basic and key provisions of the WTO Agreements to ensure the 
conformity of Croatian le gislation with these Agreements.  After adoption of this Law by Parliament, his 
Government would issue regulations laying down deta iled rules of procedure and determining other 
technical issues related to the application of such measures. 
99. The representative of Croatia said that  Croatia would not apply any anti-dumping, 
countervailing or safeguard measure until it had no tified and implemented appropriate laws in 
conformity with the provisions of the WTO Agr eements on the Implementation of Article VI, on 
Subsidies and Countervailing Measures, and on Safegua rds.  In the elaboration of any legislation 
concerning anti-dumping duties, countervailing duties a nd safeguards, Croatia would ensure their full 
conformity with the relevant WTO provisions, in cluding Article VI and XIX of the GATT 1994 and 
the Agreement on the Implementation of Article VI, the Agreement on Subsidies and Countervailing 
Measures and the Agreement on Safeguards.  After su ch legislation was implemented, Croatia would 
only apply any anti-dumping duties, countervailing du ties and safeguard measures in full conformity 
with the relevant WTO provisions.  The Wo rking Party took note of these commitments. 
B. EXPORT REGULATIONS Customs Tariffs, Fees and Charges for Services Rend ered, Application of Internal Taxes to Exports
 
100. The representative of Croatia said that Croatia had eliminated e xport duties, which had been 
levied temporarily on certain items (metal scrap  and wood timber).  The Government Regulation 
stipulating export duties for these items had been a bolished in 1996.  However, by abolishing that 
particular Regulation, Croatia had not eliminated the authority to apply export tariffs as stipulated in 
Article 34 (2) of the Customs Law, enabling his Go vernment to impose export tariffs in exceptional WT/ACC/SPEC/HRV/7/Rev.2 
Page 34  
 
cases for the protection of exhaustible natural reso urces, or to ensure essential materials to the 
domestic industry and to prevent shor tages in domestic supply.  He a dded that, at the moment, Croatia 
did not apply any export tariffs or taxes. 
101. The representative of Croatia confirmed that  after accession to the WTO, Croatia would apply 
export duties only in accordance with the provisions of the WTO Agreement and published in the Official Gazette "Narodne Novine".  Changes in th e application of such measures, their level and  
scope would also be published in the Official Ga zette "Narodne Novine".  The Working Party took 
note of this commitment. 
Export Restrictions
 
102. The representative of Croatia said that th e Law on Trade allowed the imposition of export 
quotas in exceptional cases for the purpose of prot ecting non-renewable natural resources.  Accordingly, 
the main products subject to export quotas in acc ordance with Government Decision of 12 July 1996 
had been corn, crude oil, natural gas, wood, raw leat her, glass, and newspaper waste.  Quotas had been 
set for a maximum period of one year, and by 1 Nove mber each year, the Government had been obliged 
to pass a regulation stipulating the quantity allowed to  be exported in the following year.  The criteria 
and conditions applied in the allocation of the quotas  - predominantly public tendering - had been laid 
down by the Government.  The invitation to tender ha d been published in newspapers at least eight days 
prior to the auction.  Minimum 10 per cent of th e quota had been set aside for new producers, the 
remaining 90 per cent were allocated on the basis of best offer.  Quotas had been allocated twice a year, 
in principle, and any domestic or  foreign natural or legal person duly registered in the Republic of 
Croatia could apply for the quotas.  Those not registered wi th the Commercial Court needed to apply for 
a quota through a regi stered exporter. 
103. A member reminded Croatia that all quantitativ e restrictions not jus tified under specific WTO 
provisions had to be eliminated or otherwise brought into conformi ty with WTO rules upon accession.  
The representative of Croatia replied that his Govern ment, continuing the polic y of bringing Croatia's 
trade policy measures into conformity with the principles of the GATT 1994,  had adopted decisions 
abolishing the export quotas for crude oil, gas, corn and semi-proce ssed leather at the end of 1997 and in 
mid-1998.  A Government Decision to abolish all remaining export quotas, effective 1 January 1999, 
had been passed on 8 October 1998.  After accession Croatia would, if necessary, consider the use of 
other, WTO-consistent  trade policy measures (such as export dutie s) to ensure supplies of essential raw 
materials for the domestic market. 
104. The representative of Croatia said that Croatia licensed expor ts of certain items (96 tariff 
positions) for statistical and monitoring purposes.  The products concerned are listed in Table 6 (see  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 35 
 
 
Annex).  The Ministry of Economic Affairs issued li cences automatically within  14 days upon receipt of 
the application.  He confirmed that Croatia had el iminated all export quotas, bans and other forms of 
export restrictions as of 1 January 1999. 
105. The representative of Croatia confirmed that Cr oatia had eliminated all export quotas, bans and 
other forms of export restrictions as of 1 January 1999, and said that  from the date of accession export 
restrictions would only be imposed in conformity  with relevant provisions of WTO Agreements, 
including Article XI of the GATT.  The Wo rking party took note of this commitment. 
Export Subsidies  
106. The representative of Croatia said export in centives had been allowed under the old Foreign 
Trade Operations Act, but no suppor t had been provided for the export of goods.  Croatia thus did not 
apply any export subsidies.  He added that the new Law on Trade containe d no provisions on export 
subsidies.  The Croatian Bank for Reconstruc tion and Development (HBOR) – a State-owned 
investment bank – had been establ ished and an export financing and guarantee system had come into 
operation in late 1998.  The system  was based on the Berne Union and OECD consensus criteria.  The 
bank was funded through the Government budget, bond issues and external sources (World Bank, 
EBRD, KfW, etc,). 
107. Import duty was not charged on imports used  in the production of goods to be exported and 
which remained under customs control, provided such importation was reported in advance.  Re-export 
transactions were also not subject to payment of duties, provided the imported goods would be declared 
in accordance with the principles of  temporary admission, and the custom s authorities were satisfied that 
the goods imported in this manner would leave Croati a.  Exported goods and re -export transactions were 
also exempt from VAT. 
108. The representative of Croatia confirmed that Cr oatia did not maintain s ubsidies including export 
subsidies which met the definition of a prohibited s ubsidy, within the meaning of Article 3 of the 
Agreement on Subsidies and Countervailing Measures  and that it would not introduce such prohibited 
subsidies in the future.  The Working Party took note of this commitment. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS Industrial Policy, including Subsidies
 
109. The representative of Croatia provided info rmation on subsidy progr ammes in relation to 
Article 25 of the Agreement on Subsidies and Co untervailing Measures (circulated in document 
WT/ACC/HRV/12).  Croatia did not  have a subsidy programme per se, but rather an industry 
rehabilitation and reorgani zation programme.  The Government had as sisted an area heavily devastated WT/ACC/SPEC/HRV/7/Rev.2 
Page 36  
 
during the war by financing the payroll of seven ente rprises located there and involved in the production 
of steel (Sisak Steel and TPK-EPO Zagreb), stee l refining (Valjaonica Kumrovec), and textiles 
(Dalmatinca, Diokom, Pazinka and Velebit) at an acc umulated cost of approximately US$3.2 million by 
mid-1996.  Croatian Railways had also been subsid ized in the post-war period to the level of some 
US$400 million by the end of 1996.  The Government also  subsidized sea transport of tourists by paying 
the difference between revenues and expenditure on popular touris t lines and connections (about 
US$31 million in 1995 and US$35 million in 1996). 
110. Requesting specific information on subsidies to shipbuilding, a member st ated that Croatia had 
generally not provided sufficiently de tailed information on its subsidization policies, in particular with 
regard to policy objectives, levels of subsidization, e ffects, and the duration of su ch policies.  In reply, 
the representative of Croa tia said that the shipbuilding industry had not been subsidized since 1991 to 
date.  A restructuring programme for shipyards was under way, but the form and scope of subsidization 
had not yet been determined.  Asked about plans to  harmonize subsidies to fisheries and the canning 
industry to WTO requirements, he said that Croatia had provided data on subsidies which were in 
accordance with WTO rules.  Information on subs idies and other forms of government support to 
industry and agriculture for 1997 and 1998 had been s ubmitted to the Working Party in December 1998.  
The representative of Croatia provided detailed information on non-agricultu ral subsidies in 1998 and 
1999 in document WT/ACC/HRV/49.  He confirmed that Cr oatia maintained no subsidies which met 
the definition of a prohibited subsidy within the me aning of Article 3 of the Agreement on Subsidies and 
Countervailing Measures. 
111. The representative of Croatia confirmed that Croatia would not maintain, and from the date of 
accession would not introduce, subsidies including export subsidies which met the definition of a 
prohibited subsidy, within the meaning of Article  3 of the Agreement on Subsidies and Countervailing 
Measures and would therefore not seek a transitional pe riod for the elimination of such measures.  In 
addition, he confirmed that all s ubsidy programmes would be administered in line with the Agreement 
on Subsidies and Countervailing Measures and that  all necessary information on programmes to be 
notified, if such exist, would be provided to the Committee on Subsidies and Countervailing Measures 
in accordance with Article 25 of the Agreement upon entry into force of Croatia's Protocol of 
Accession.  The Working Party took note of these commitments. 
Technical Barriers to Trade, Standards and Certification
 
112. The representative of Croatia said that Croa tia was implementing the requirements of the TBT 
and SPS Agreements in laws and re gulations which would be in force prior to accession to the WTO.  
Among the laws and regulations already in force were the Law on Standardisation;  the Law on 
Health Safety and Health Control of Foodstuffs and Goods of Personal Usage;  the Veterinary Law;   WT/ACC/SPEC/HRV/7/Rev.2 
 Page 37 
 
 
the Law on Plant Protection;  the Law on Pharma ceuticals and Medical Products;  the Regulation on 
Phytosanitary Inspection of Plants and Control of  Plant Protection Products in the National Cross-
Boundary Transportation;  and technical regula tions on quality and health requirements for each 
product subject to quality and SPS control.  By en d July 1999, Croatia planned to adopt a Law on 
State Inspectorates (adopted on 30 June 1999) and issu e Regulations related to  the implementation of 
the TBT and SPS Agreements, i.e. on the Proced ure for the Adoption of regulations on Basic 
Requirements for Goods, Processes and Services (adopted on 27 May 1999);  on Methods and 
Procedures of Quality Control;  on the List of Items Subject to Quality Control;  and on the Bearing of 
Costs of Quality Control.  His Government wa s examining all existing regulations and, where 
necessary, completing them with new provisions to ensure full conformity with the procedures for 
preparing, adopting and applying new technical regul ations and standards established in the TBT and 
SPS Agreements.  Croatia's implementing regulations  would include a checklist of points addressing 
the issues regulated in the TBT and SPS Agreemen ts, including the Code of Good Practice for the 
Preparation, Adoption and Application of Standards. 
113. The representative of Croatia said Croatian  state bodies were members of international and 
European standardization organizations, includi ng the ISO, IEC, ITU, EOQ, ETSI, CEN and 
CENELEC.  The Law on Standardization (Standardiza tion Act) had entered into force on 10 July 1996, 
and the application of Croatian standards was no longer obligatory as from 1 January 1997.  The new 
Law mandated new Croatian standards to be based also on internat ional (ISO, IEC) or 
regional/European standards, or where these did not exist, on the standards of other countries.  A large 
number of Croatian standards would be prepared by accepting international and European standards.  A TBT enquiry point had been established in the Stat e Office for Standa rdization and Metrology and had 
been fully functional since 1 March 1999.  Draft st andards were published in the State Office Journal, 
allowing at least 30 days for comments and remark s from the public, New technical regulation or 
national standards would be prepared only when th e regulatory authorities considered international 
standards to be ineffective or inappropriate in Cr oatia due to climatic, geographical, or technological 
factors.  In such cases, the regulatory authority woul d publish a notice in the Official Gazette of the 
State Office for Standardisation and Metrology of ab out the draft technical regulation or standard, and 
supply a copy of the draft to the WTO Secretariat.  Copies of draft technical regulations or standards 
would be provided to other WTO Members upon requ est.  The regulatory authority would allow all 
interested parties 90 days to comment on draft t echnical regulations or standards.  Any comments 
would be duly considered and parties making comme nts would be informed [, and an explanation 
would be provided,] if their comments could not be  accepted.  The final technical regulation or 
standard would be published in the Official Gazette  of the Republic of Croatia, with copies submitted 
to the WTO Secretariat, and become applicable thr ee months after publication in the Official Gazette.  
The State Office for Standardiza tion and Metrology had informed th e International Organization for WT/ACC/SPEC/HRV/7/Rev.2 
Page 38  
 
Standardization (ISO)  about the acceptance of the Code of Good Practice  for Standardization in 
October 1998. 
114. A number of products were subject to quality  control, based on 55 regulations on mandatory 
testing and certification.  The ru les on quality control applied equally to domestically-produced and 
imported goods.  Border controls were carried out by market inspectors, who were officials of the State 
Inspection, in accordance with Ar ticle 6 of the Law on Import and Export Quality Control of Goods.  
Croatian goods were controlled during the production proc ess and when leaving the factory.  In addition, 
spot-checks took place at the retail le vel.  The list of affected product s had been reduced gradually to 29 
items.  The products concerned and the relevant re gulations are listed in  Table 7 (see Annex). 
115. A list of legal persons authorized to perfor m mandatory product attestation was provided to the 
Working Party in document WT/ACC/HRV/22.  Prior exam ination of expert institutions, as opposed to 
sensor (visual) inspection, was re quired for agricultural products, alc oholic beverages, oil derivatives 
and textiles.  Following a sensor inspection, an insp ector could issue certificates without preliminary 
tests for repeat shipments.  Manufacturers' self-decla rations were not accepted under the present system.  
The fees associated with quality control were en umerated in the Decision on Amounts to be Paid for 
Covering the Costs of Quality Control of Produc ts Upon Export and Impo rt (Officia l Gazette 
No. 42/96), which was provided to the Working Party. 
116. Croatia was asked to justify the mandatory qua lity inspections at the border, particularly on 
furniture and textiles, and a member  reminded the representative of Croatia that Article 2.2 of the TBT 
Agreement stipulated that technical regulations should not be more trade-restrictive than necessary to 
fulfil a legitimate objecti ve, and that international standards should be used where these existed 
(Article 2.4).  Croatia’s "quality control" certifica tion process was covered by the requirements of  inter 
alia the WTO Agreements on Import Licensing Proce dures, Technical Ba rriers to Trade and Sanitary 
and Phytosanitary Measures.  Croatia's system did not seem consistent with  these requirements, in 
particular with the requirements for transparency, enquiry point information, prior publication, MFN or 
national treatment.  The system was burdensome to im ports and was not applied in a similar fashion to 
domestic goods.  Croatia should review and revi se the system. 
117. In response, the representative of Croatia said that quality cont rols were required to prevent 
deceptive practices or to protect human health and safety, animal or plant life and health, or the 
environment.  The only products controlled were thos e imported by a large number of importers and 
those widely dispersed in the Croatian market.  The respective government regulations were mostly 
former Yugoslav standards, based on international standards or national standards of other countries, or 
more recently adopted regulations based on internationa l or regional (European) standards.  The Law on 
Standardization envisaged acceptance of internationa l standards, European sta ndards, or standards of  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 39 
 
 
other countries, including recognition of foreign laboratory tests and doc uments issued abroad.  Croatian 
standards had been voluntary since 1 January 1997. 
118. Various technical regulations had been adopted, and others would be prepared, to determine the 
essential requirem ents for products (safety, health, enviro nmental protection, us er protection) by 
harmonizing them with international ru les and European directives.  It wa s also foreseen to regulate the 
acceptance of suppliers' declaration of conformity.  Conformi ty assessment proc edures would be 
performed by testing laboratories and certification bodies  accredited according to the new Croatian 
accreditation scheme, which was in compliance with  international guides and recommendations.  The 
new accreditation system had been established by the State Office for Standardization and Metrology 
(DZNM) in September 1997.  DZNM was affiliate to  EAL (European Co-operation for Accreditation of 
Laboratories).  A Regulation on rec ognition of foreign test reports is sued by internationally-recognized 
testing organizations had been published in July 1997, and had been in force since 1 September 1997. 
119. A member stated that Croa tia's efforts to unify its legi slation on quality control were 
encouraging, but Croatia's responses did not addr ess the fundamental issue of application of the 
requirements to imports in a manner no less favorable  than to similar domestic goods.  This member 
considered the current system demonstrably burdensom e to imports and noted that it was applied, if at 
all, in manner more convenient fo r domestic goods than for imports.  Croatia was requested to provide 
additional detail on how "quality c ontrol" operated vis-à-vis the requirements of the TBT and SPS 
Agreements, indicating whether the controls were sta ndards or sanitary requirements, and to (i) clarify 
whether any domestic regulations stipulated the collection of specific fees for quality control 
inspection of domestic goods;  (ii) list the fees ch arged for quality control inspection for imports and 
exports, indicating how these fees were consistent wi th the national treatment provisions of Article III 
of the GATT and the provisions on f ees applied to imports of Article VIII of the GATT;  (iii) describe 
how the import quality control process worked in practice for goods such as petrol, liquefied gas, 
paraffin, diesel fuels, jet fuels, antifreeze and oils, in particular, whether certificates were issued on 
repeat shipments without repeating preliminary test s;  (iv) identify laws or regulations applying 
quality requirements to domestic goods and provide the text of provisions  stating such requirements to 
the Working Party;  and (v) provide further in formation on how new legislation would eliminate 
discrimination, for example at what point of sale such requirements would be applied to imports and 
domestic goods.  This member also noted that pharmaceuticals were not included in the quality control list, but understood that the Croatian Minist ry of Health required repeated batch testing of 
pharmaceuticals, but not for domestic producers.  This  procedural discrimination thus added costs to 
imports.  Croatia was asked to describe the current approval process for pharmaceuticals. 
120. The representative of Croati a addmitted that certain inconsistencies existed in currently 
applied quality and SPS control.  Croatia was theref ore focusing on steps to address the issue of non-WT/ACC/SPEC/HRV/7/Rev.2 
Page 40  
 
discrimination under Article III of the GATT, a nd meeting the requirements of the TBT and SPS 
Agreements.  Concerning quality controls, standardi sed products such as fuels would continue to 
receive certificates issued on repeat shipments of the same producer without repeating preliminary 
test.  Quality controls on pharmaceuticals were perf ormed by the Pharmaceutical Inspection of the 
Ministry of Health in accordance with the special Law on Pharmaceuticals and Medical Products and 
therefore not listed in the general quality control list.  Each consignment of domestically-produced 
and imported pharmaceutials was subject to repeated batch testing by the Pharmaceutical Inspection.  
The fees charged for quality control and SPS contro l inspections were equal for domestic products 
and imported products. 
121. The representative of Croatia added that having reviewed all comments, remarks and requests 
of Working Party members, Croatia had conclude d that the main outstanding problem had been 
related to the mandatory quality control system a pplied to imported products.  His Government had 
accordingly decided to change legislation and prac tice in this area.  Parliament had passed new 
legislation on 30 June 1999, to be enforced as from early October 1999.  The new Law on State 
Inspectorate would incorporate the following changes in relation to present practice. 
(a) Quality control would be based on ensuring consumer protection.  Quality controls on 
imported items prior to customs clearance w ould be abolished.  The State Inspectorate 
would perform quality controls on designate d imported and domestic products at the 
wholesale and retail level.  The State Inspectorate would check whether products were 
covered by proper quality conformity documen tation issued by authorised institutions 
in Croatia or abroad, and whether labelling and packaging requirements had been met.  
The State Inspectorate would also be en titled to check product content against 
declared values by analyzing sample; 
(b) Controls of domestic products would be c onducted either at the production site or at 
the wholesale and retail level; 
(c) A Government Regulation could be issued, defining a list of items subject to control 
of documentation relevant to conformity w ith quality requirements.  The list would be 
shorter than the list applied at present;  and 
(d) A Government Regulation could be issued defining the structure of inspection fees, 
equalizing fees for the inspection of impor ted and domestically produced items, and 
abolishing present practice of charging fees in proportion to the inspected quantity, 
Having passed the new Law on State Inspectorate and a Government Regul ation on methods and 
procedures for issuing technical regulations prescr ibing quality and health requirements, Croatia  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 41 
 
 
considered its legal framework on TBT and SPS issu es to have been completed, thus ensuring 
consistency with national treatment, MFN treatment , transparency requirements and other provisions 
of the GATT and the Agreements on TBT and SPS. 
122. The representative of Croatia  confirmed that Croatia would apply all obligations under the 
WTO Agreement on Technical Barriers to Trade from the date of accession without recourse to any 
transition period.  The Working Pa rty took note of this commitment. 
Sanitary and Phytosanitary Measures  
123. The representative of Croatia said that Croa tia's sanitary regime was based on the Law on 
Animal Health Protection and Veterinary Medicine (Official Gazette NN 52/91).  A large number of 
other legal provisions (rules, decree s, instructions) had been adopted in accordance with this Law, in 
particular concerning the preventi on and eradication of contagious diseases, the control of animal 
breeding and trade in animals and pr oducts of animal origin.  Recent  examples included regulations 
relating to proteins in the feed of ruminants, and imports of pigs and wild boars from certain countries 
(Official Gazette 28/1997).  Sanitary measures were implemented on the basis of the Veterinary Law, 
the Law on Veterinary Drugs and Veterinary-Medical  Products and the Act on the Safety and Sanitary 
Inspection of Foodstuffs and Articles for General U se.  Imported products were subject to sanitary 
controls at the customs clearance houses, prior to cu stoms clearance, as well as at the point of sale at 
the retail level.  Sanitary controls of domestic products took place at the production site and at the 
point of (retail) sale.  Croatia was harmonizing its veterinary legislation with European Community 
requirements. 
124. Croatia participated in the activities of  the FAO/WHO Codex Alimentarius Commission 
(FAO/WHO - CAC) and the International Office of Epizootics (IOE).  Croatia's sanitary measures 
were based on the standards, guidelines or recomme ndations of these two organizations, as well as on 
the regulations, decisions or directives in force in the European Union.  According to the general or 
specific requirements of the FAO/WHO - CAC and IOE, Croatia reported to these organizations on a 
monthly or annual basis, or as appropriate.  As from 10 October 1998, the State Office for 
Standardization and Metrology served as the enquiry point responsible for the provisions of responses 
or relevant documentation regard ing the SPS Agreement.  All adopted  regulations related to sanitary 
measures were published in the Official Gazette of  the Republic of Croatia  (Narodne Novine), and 
submitted for comment and discussion to professiona l and scientific bodies and involved institutions 
prior to adoption.  Concerning risk assessment, the me thods used to analyze th e risks associated with 
importation of animals, animal products, animal ge netic material and foodstu ffs were in accordance 
with the relevant models developed by the IOE.  Wh ere such models did not exist, the Ministry of 
Agriculture and Forestry would determine the measur es to be applied in coope ration with the Croatian WT/ACC/SPEC/HRV/7/Rev.2 
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Veterinary Institute and the Veterinary Faculty.  In such instances, the Croatian authorities took into 
account available scientific evidence as well as other relevant data in accordance with the provisions 
of the SPS Agreement. 
125. Veterinary legislation was con tinuously adjusted to international standards, particularly to those 
established by the International Agency for Epiz ootic Diseases (Paris) and Codex Alimentarius, 
Croatian requirements, i,e, veterinary and sanitary  conditions for importation of live animals and 
animal products, were in accordance with IO E recommendations.  Imported products were 
accompanied by certificates issued by the veterinary authorities of the exporting country as part of the import licenses issued by the Ministry  of Agriculture and Forestry – Veterinary Directorate.  Import 
certificates were issued centrally by the State Veterinary Agency.  The border veterinary inspection controlled and inspected animals and animal products, animal offa l substances, semen, embryo, and 
other goods that could transmit cont agious diseases or affect huma n or animal life when imported, 
exported or in transit.  The product coverage of Croati a's sanitary measures is outlined in Table 8.  The 
veterinary inspection at the border was based on the Codex of the International Agency for Epizootic 
Diseases (Paris);  international bilateral agreements on veterinary co-operation;  the Veterinary Law 
("Official Gaze tte" No. 70/97);  and International C onventions on the Harmonisation of Border 
Inspection of Products.  Croatia's veterinary in spection at the border wa s organised within the 
Department for Border Veterinary Inspection of the Ministry of Agriculture and Forestry - Veterinary 
Directorate.  Five border veterinary stations - in Zagreb, Gorican, Osijek, Rijeka and Split – had been 
established by the Government Deci sion of 7 January 1991 ("Official Ga zette" No.  58/91).  The borders 
where veterinary inspection was ca rried out were determined by the Decree of the Minister of 
Agriculture and Forestry  on Borders of 6 January 1995.  The veterinary and sanitary inspection 
requirements were identi cal for shipments by domestic producers and producers from exporting 
countries.  Croatia had harmonize d its border veterinary inspection system completely with the 
requirements of the European Union.  Veterinary inspectors were trained on a regular basis to improve 
the standards of control, inspection and approva l procedures in accordance with the SPS Agreement. 
126. Concerning phytosanitary regulations, the represen tative of Croatia said that the basic law in 
this area was the Law on Plant Protection ("O fficial Gazette" No. 10/ 94 and 19/94), drafted in 
compliance with the basic principles and requirement s of international standards, instructions and 
recommendations (the International Plant Protec tion Convention and European and Mediterranean 
Organisations for Plant Protection).  Based on this Law, Croatia had issued the Regulation on Phytosanitary Inspection of Plants and Control of  Plant Protection Products in the National Cross-
Boundary Transportation ("Official  Gazette" 12/95 and 96/95).  This  regulation was under revision (to 
be completed in Spring 1999) to harmonize it with in ternational standards, measures, and procedures 
and to meet the requirements of SPS Agreement.  He  expected Croatia would be able to apply fully  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 43 
 
 
the Agreement on Sanitary and Phytosanitary Measur es with regard to phytosanitary measures by the 
end of 1999.  Croatia had been member of th e European and Mediterranean Plant Protection 
Organization since 1994, and had joined the International Plant Protection Convention on 
12 May 1999.  Croatia reported regularly to EPPO on  all issues concerning pl ant protection.   Products 
subject to phytosanitary measures are listed in Table 9. 
127. The Regulation on the Sanitary Inspection of Plants and Plant Protection Chemicals in the 
Traffic Across the State Border ("Official Gazette" No. 12/95) applied, as far as possible, measures and 
recommendations equivalent to meas ures applied by other members tr ading in similar products (plants 
and plant products).  Trade bans  could be imposed on seeds and pl anting materials to prevent the 
spreading of pests, but Croatian measures were not stricter than those internationally recommended and 
did not make any distinction between imported and domestic products.  The Government had provided 
funds for the introduction of information systems in 1998, and would seek funds necessary for the 
purchase of technical equipment (laboratory equipm ent and other facilities needed for the proper 
functioning of the phytosanitary inspection) in 19 99.  He added that Croatia accepted that the 
establishment and effective functioning of such facilities were an essential basis for ensuring that border 
inspections and import approvals we re soundly based on scient ific evidence, as required under the SPS 
Agreement.  Any trade bans, including those on seed s and planting materials, needed to be based on 
scientific evidence.  Concerning risk assessment, among its many activities in the plant protection field (systematic survey and monitoring of harmful organisms, phytosanitary supervision of seed and 
propagating material, diagnostics, testing, inform ation and advisory activities, etc,) the National 
Institute for Plant Protection in Agriculture and Forestry was responsible for activities in assessment 
of risk of plant pests (both quarantine and non-quarantine). 
128. The plant protection administration within the Ministry of Agriculture and Forestry was in the 
process of reorganization.  Plant protection inspection services at the border were organized within a 
special section of the Ministry of  Agriculture and Forestry (the De partment for Agriculture, Food and 
Tobacco Industries).  Operating in five units, the in spection services controlled a total of 19 plant border 
crossings where plants imported or transported throug h Croatia were subject to mandatory examination.  
The Institute for Plant Protection in  Agriculture and Forestry examined  plants for export.  The border 
inspection service cooperated with the Institute in organizing quarantine-related activities and 
maintaining quar antine facilities. 
129. Food products were subject to various laws and regulations, notably the Law on Food Quality 
and Food Quality Control, regulations on additives, ad missible levels of pesticides, toxins, mycotoxin, 
metals and like substances, and regulations concerning  microbiotic quality control.  The Law on Health 
Safety and Controls of Foodstuffs and Goods of General Usage ("Offici al Gazette" No. 1/97) stipulated 
the health and safety conditions for imported or do mestically-produced foodst uffs and goods of general WT/ACC/SPEC/HRV/7/Rev.2 
Page 44  
 
usage.  In addition, the Law provided for health c ontrol of the production and distribution of foodstuffs 
and goods of general usage.  The provisions of the La w also applied to raw mate rials, spices, additives 
and substances used for enriching foodstuffs.  Regul ations adopted on the basis of Article 50 of the Law 
on Health Safety and Health Cont rol of Foodstuffs and Goods had been published in the "Official 
Gazette" No. 46/94 and included Rules on Health Sa fety of the Drinking Wa ter;  Micro-biological 
Standards of Foodstuffs;  Quantiti es of Pesticides, Toxins, Micro- toxins, Metals and Histamine and 
Similar Substances that Foodstuffs May Contain and Other Conditions in  Relation to Health Safety or 
Foodstuffs and Other Goods;  Conditions of Preser ving Food and other Goods by  Ionising Radiation;  
Health Safety of Dietetic Food;  Conditions related to the Health Safe ty that the Goods of General Usage 
have to Comply with in Order to be Distributed on the Market;  Preparatio n and Sale of Foodstuffs 
Outdoors;  Micro-biological Cleanness Norms and Me thods of their Defining;  and Special Working 
Cloths and Shoes for Workers who in Production a nd Distribution Come into Close Contact with 
Foodstuffs, Cosmetic and Toilet Preparations for Body and Face.  Croatia was also preparing and 
adopting other implementation rules and regulations based on Article 50 of the Law. 
130. Foodstuffs were defined as a ll products used as food or dri nk, processed or non-processed, 
including drinking water.  Goods of general usag e included tableware, accessories, equipment and 
apparatus for production of foodstu ffs and goods of general usage a nd containers, toys, perfumery, 
cosmetic and toilet preparations fo r body and face, washing preparations , tobacco, tobacco products and 
smoking accessories as well as certai n goods and instruments coming into close cont act with skin or 
mucous membrane when used, .  The list of imported  products subject to quality control and the relevant 
regulations (Table 7 - se e Annex) included 27 categories of fo od products.  Prior examination was 
required for Croatian exports of ca nned meat, wine and plum brandy. 
131. According to Article 5, paragraph 1, point 3 of the Law, foodstuffs or goods were considered 
unsafe for human health if their se nsory characteristics had changed or if they contained pathogenic 
micro-organism or pathogenic parasite;  bacteria toxi n, micro toxin, histamine, and similar substances in 
quantities exceeding those determined by the regulations ;  natural toxin or other natural toxic substances 
in quantities noxious for human hea lth;  pesticides, metals, non-metals , veterinary medicaments residue 
and other noxious substances in qua ntities harmful to human health;  additives not allowed for the 
production of foodstuffs and other goods of general usage or add itives in quantities determined 
inadmissible by special regulations ;  radio nuclides in quantities exce eding the limit regulated by the 
Law;  mechanically damaged admixtures noxious fo r human health or causing aversion;  materials 
originating from dead animals or animals suffering from disease noxious  to human health; or if they 
contained other micro-organisms, parasites or substances in quantities harmful to human health. 
132. Five inspectorat es were in charge of quality and SPS control in Croatia;  the State Inspectorate 
(quality control), the Sanitary Inspectorate (health control of goods of general use), the Veterinary  WT/ACC/SPEC/HRV/7/Rev.2 
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Inspectorate (health control of foodstuffs of animal  origin), the Phytosanitary Inspectorate (plant 
health control), and the Pharmaceutical inspect orate (quality control of pharmaceuticals).  The 
competent authority had the right to take samples to be  tested by authorised labor atories.  Health control 
of imported foodstuffs and other goods were effected by the border san itary inspector and by the border 
veterinary inspector (products of animal origin) in accordance with Article 32 of the Law.  The costs of controls and health safety inspections were borne by the importer (Article 35 ).  The importer was not 
allowed to distribute or process the imported goods un til he received the official decision that the goods 
were safe. 
133. A member noted that various agricultural products were subject to quality control standards, 
and requested Croatia to clarify whether these quality  standards were actual SPS regulations or just 
consumer preferences.  This member could not understand why processed products such as mustard, 
biscuits, pasta, soup, baking powder, condiments,  margarine, and mayonnaise required SPS testing 
and asked Croatia to explain the public policy objec tive of each of these measures and whether they 
were intended to address known risks to public health  or safety.  Information such as a step-by-step 
account of the entire testing process and an assessme nt of the time-frame involved would also be 
welcomed. 
134. In reply, the representative of Croatia said th at quality controls had been established for the 
protection of consumers' rights, and the public policy objective of SPS controls was to address risks to 
public health.  For example, a processed product subject to control - such as fruit juice - was 
examined by a Sanitary Inspector assessing the imp act of its ingredients on public health (applying 
regulations prescribed in accordance with the SPS Ag reement), and by a State Inspector assessing the 
conformity of the declared ingredients with th e actual content, as well as the conformity with 
prescribed quality, packaging and labeling requ irements (applying regulations prescribed in 
accordance with the TBT Agreement) .  When needed, inspectors would take samples which were sent 
to authorised laboratories.  The shipment was re leased to the warehouse of  the importer or producer 
when the analyses had been completed, which woul d normally take no more than 3 to 4 days.  
Technical products such as electrical or mechanical  appliances were not subject to sampling, as the 
inspectors recognised tests and certif icates issued by authorised dom estic or foreign institutions.  
Quality controls on imported pr oducts were performed at the customs clearance houses prior to 
customs clearance, and at the retail sale outlet.  Do mestic products were subject to quality control at 
the production site and at the re tail sale outlet.  His Government was considering the possibility of 
rationalizing the operational structure of its inspectorates. 
135. The representative of Croatia confirmed that Croatia's sanita ry and phytosanitary standards 
system would be in compliance with WTO provi sions under the Agreement on the Application of 
Sanitary and Phytosanitary Measures  as of the date of accession to the WTO, and that Croatia would WT/ACC/SPEC/HRV/7/Rev.2 
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apply the Agreement on the Application of Sanitary  and Phytosanitary Measures from the date of 
accession without recourse to any transition period.  The Working Party took note of this commitment. 
Trade-Related Investment Measures
 
136. The representative of Croatia said that Croa tia had no trade-related in vestment measures in 
place at the present time, nor did it intend to intr oduce any such measures in the future.  Croatia 
accordingly did not seek to notify any measures  for elimination under the provisions of the WTO 
Agreement on TRIMs. 
137. The representative of Croatia said that Croatia would not maintain any measures inconsistent 
with the TRIMs Agreement and would apply th e TRIMs Agreement from the date of accession 
without recourse to any transition period.  The Working Party took note of this commitment. 
State Trading Entities  
138. Referring to the definition of  State trading enterprises cont ained in paragraph 1 of the 
Understanding on the Interpretation of Article XVII  of the General Agreement on Tariffs and Trade 
1994, the representative of Croatia st ated that Croatia did not have or maintained any enterprise covered 
by the provisions of Article XVII.  Ten large enterprises were under di rect State owners hip, but none of 
these public enterprises were grante d exclusive or special rights or pr ivileges which could influence, 
through their purchases or sales, the level and dire ction of imports and expor ts.  Upon accession to the 
WTO, his Government would notify any State-tr ading enterprise, monopoly or exclusive service 
supplier, existing at the time, in accordance with  Article XVII of the GATT and Article VIII of the 
GATS. 
139. A member pointed out that the representativ e of Croatia interpreted Article XVII of the 
GATT 1994 narrowly.  For transparency purposes, it woul d be useful to inform the Working Party about 
a number of private monopolies supported and influen ced by State and local authorities.  These existed 
in various sectors such as tran sport services, distribution servic es, tourism, financial services, 
procurement, etc. 
140. In reply, the representative of Croatia sai d that this member's statement was not s upported by 
facts.  The Law on the Protection of Market Competition regulated the activities of monopolies in Croatia, and the Agency on the Protection of Mark et Competition had been established in 1995.  The 
Agency was entrusted with the task of detecti ng monopolistic practices.  In its three years of 
existence, the Agency had examin ed the market conditions in all sectors, and not found any private 
monopolistic behaviour allowing monopolies or oligopol ies to exploit their market share to the 
detriment of competitors or consumers.  Moreover, in his view, the State trading issue did not arise  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 47 
 
 
unless direct ownership relations, accompanied by gr anted trading preferences, existed between the 
State and a private sector monopoly, and this was not the case in Croatia.  He confirmed that his 
Government did not grant monopolistic trading rights  in goods and services to any firm other than 
those mentioned in paragraph [145], whic h would be notified to the WTO upon accession. 
141. Responding to specific questions from members,  he said that a Stat e-owned company (Astra 
International) engaged in foreign tr ade with the same right s and obligation as any other Croatian foreign 
trade company.  Most petroleum and petrochemica l products were produced and distributed by the 
State-owned enterprise INA, which competed with mo re than 20 smaller companies in the distribution 
and trade in crude oil and oil product s.  He stated that Hrvatske sume (Croatian Forests) was a public 
utility company operating in full conformity with Arti cle XVII of the GATT.  Other public enterprises 
included Hrvatske ceste (Croatian Roads), Hrvatska  vodoprivreda (Croatian Wate r Utilities),  Hrvatska 
posta i telekomuni kacija (Croatian Post and Telecommunications, from 1 January 1999 divided into two 
companies - Hrvatska pošta (Croatian Post) and Hrvatske telekom unikacije (Croatian 
Telecommunications), Hrvatska elektroprivreda (Croatian Electricity), Hrvatske zeljeznice (Croatian Railways), Hrvatska radio televizi ja (Croatian Radio and Television), Jadrolinija (Adriatic Line), and 
Narodne novine (Official G azette).  Alcohol and tobacco products were produced and distributed by a 
large number of companies, none of which were St ate-owned or State-mandat ed.  Former socially-
owned farms had been transformed into joint-stock co mpanies, and most of them had been privatized. 
142. The Law on Commodity Reserves (Official Ga zette 68/1997) stipulated public stockholding of 
some agricultural and non-agricultur al products.  Commodity reserves had been established to ensure 
essential supplies in case of war, th reat of war, or natural disaster.  This function of commodity reserves 
as permanent reserves was ensure d by determining the goods needed for those situations.  The main 
function of commodity reserves would be ensured w ithin the framework and appropriate manner for the 
set objectives.  The Directorate for Commodity Reserves (formerly the State Directorate for Commodity 
Reserves) - a non-profit governmental body within the Ministry of Economy - intervened in the market 
only upon order by the Government.  In certain circum stances the Directorate c ould intervene to prevent 
domestic price increases on agricu ltural and food products, but only upon a decision of the Government.  
Purchases would be made by tender, and the Direct orate would select the most favourable bid on the 
basis of purely commercial considerat ions in line with the non-discrimi nation principle of Article XVII 
of the GATT.  The Directorate could export goods bo ught through intervention in the domestic market 
by government decision only, in which case good s were exported through a commercial company 
chosen on the basis of public tender. 
143. Some members noted that the Law on Commodity Reserves appeared to provide for both 
public stockholding and commodity intervention functions.  Although the Directorate for Commodity 
Reserves appeared to make purchases on a commercia l basis through a tender system, it was also WT/ACC/SPEC/HRV/7/Rev.2 
Page 48  
 
noted that the Directorate could export products , purchased through intervention in the domestic 
market, by government decision.  Croatia was therefore requested to explain under what 
circumstances the Government could decide to instru ct the Directorate to export products, the system 
for exporting products, and whether the Director ate used established guaranteed prices when 
purchasing commodities from domestic producers.  This information was necessary to determine whether the Directorate for Commodity Reserves wa s a State trading enterprise in the context of 
GATT Article XVII. 
144. The representative of Croatia replied that hi s Government could adopt a Decision to export 
products purchased through interventio n in the domestic market at guaranteed prices and held at the 
Directorate for Commodity Reserves only when estim ates indicated that these were surplus products 
exceeding the needs of the domestic market.  The Di rectorate for Commodity Reserves was obliged to 
sell such products through a tender system where all interested exporters were subject to equal 
conditions.  Tenders and selecti on procedures were carried out in accordance with the Law on 
Procurement of Goods and Services  and Sub-contracting.  The Directorate for Commodity Reserves 
used guaranteed prices for purchases of products when such prices had been pr escribed (i,e, for wheat, 
sugar beet, soyabeans, sunflower, rapeseed oil a nd tobacco);  the strategic commodity reserves of 
other products were purchased at market prices. 
145. The representative of Croatia agreed that  Hrvatske sume (Croatian Forests) and the 
Directorate for State Commodity Reserves were State-trading entities within the meaning of 
Article XVII of the GATT.  He confirmed that Croatia would notify these entities to the WTO upon 
accession. 
146. The representative of Croatia confirmed th at his Government would apply its laws and 
regulations governing the trading activities of St ate-owned enterprises and other enterprises with 
special or exclusive privileges and would act in full conformity with the provisions of the WTO 
Agreement, in particular Article XVII of the GAT T 1994 and the Understanding on that Article and 
Article VIII of the GATS.  He further confirme d that Croatia would notify any enterprise falling 
within the scope of Article XVII.  The Wo rking Party took note of these commitments. 
Free Zones, Special Economic Areas
 
147. The representative of Croatia said that nine customs zones were operating in Croatia following 
the entry into force of the new Law on Free Zones (13 June 1996).  These were situated in Zagreb, 
Krapina, Kukuljanovo, the port of Rijeka, Šibenik and Os ijek.  A free zone coul d be established by one 
or more domestic legal person.  The user of the zone could be its founder, or any other foreign or 
domestic legal or natural person.  Activities carried out in a free zone included goods production and  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 49 
 
 
processing, goods assembly, wholes ale trade warehousing, and repackaging.  Banking and other 
payment transaction activities such as insurance and re insurance could take place in a free zone subject 
to approval by the Ministry of Finance.  Operat ors paid no customs duties or other taxes on imported 
goods intended for production and consumption in the customs zone.  Companies located in the zones 
were not obliged to export any minimum portion of th eir output.  Goods processed in the zone for the 
domestic market would be subject to customs and other duties on the raw materials and other imported 
inputs used in the production process.  Users engaged in or participating in infrastructure construction 
within the zone, in projects with a value exceeding HRK 1 million, were exem pt from paying profit tax 
during the first five years of business activities.  Ot her users paid profit tax equal to 50 per cent of the 
standard rate. 
148. The representative of Croatia stated that the free zones authorized by the legislation described 
in [paragraph 147] would be fully subject to the coverage of Croatia's commitments taken in its 
Protocol of Accession to the WTO Agreement, and that Croatia would ensure enforcement of its 
WTO obligations in those zones.  In addition, goods produced in these areas under tax and tariff 
provisions that exempt imports a nd imported inputs from tariffs and cer tain taxes will be subject to 
normal customs formalities when entering the rest of  Croatia, including the application of tariffs and 
taxes.  The Working Party took note of these commitments. 
Government-mandated Co untertrade and Barter  
149. The representative of Croatia said that the St ate did not conclude compensation deals in its own 
name and did not in any way participate in the conc lusion of compensation deals.  All laws and trade 
policy measures, including customs duties, licences, etc, applied to goods exchanged in compensation 
deals, Such deals were concluded by natural or lega l persons, and the contracts were registered with the 
Ministry of Economy for statistical purposes.   In  1995, the Ministry had recorded 930 compensation 
contracts, accounting for around 5 per cent of Croatia's foreign trade.  In 1996, the number of contracts 
registered in the Mi nistry of Economy fell to around 600, and the decline had continued in 1997.  The 
number of such contracts was expected to fall as  the economy was consolidating and stabilizing in 
Croatia and in neighbouring countries. 
150. The previous Law on Foreign Trade Operations  had also regulated a system of long-term 
production cooperation.  Long- term production cooperati on referred to a continuous exchange of goods 
in so called tie-in trade for a period of not less than three years (the le gal minimum).  The parties to such 
arrangements could agree that no payment would be exchanged for each transaction, but the balance 
might be paid to a bank account.  In 1995, 90 cont racts were in force on long-term manufacturing 
cooperation between Croatian  firms and their partners, mostly fr om Germany, Italy and the Russian 
Federation.  Goods exchanged in long-term production transactions we re subject to the normal trade WT/ACC/SPEC/HRV/7/Rev.2 
Page 50  
 
policy instruments, including customs duties and licen sing requirements.  The new Law on Trade, which 
entered into force in February 1996,  did not specifically regulate thes e types of contracts.  Companies 
were free to enter into such arrangements  if they found it in their own interest. 
Government Procurement
 
151. The representative of Croatia said that Parl iament had passed the Law on Procurement of Goods 
and Services and Sub-contracting in mid-Decemb er 1997.  The Law replaced the Government’s 
Regulation on the Procedure for Procurement of Go ods and Services and Sub- contracting.  The Law 
entered in force in March 1998. 
152. En tities under obligation to apply the Law on Pr ocurement of Goods and Services and 
Sub-contracting were Government authorities and other State authority bodies;  bodies of the local government and self-government units;  legal persons owned by the Stat e or legal persons using funds 
from the State budget for their regular activities and capital investments;  legal persons using budget 
guarantees or other insurance concerning the proc urement contract or other support related to 
commitments assumed under that contract;  and le gal persons using financing from extrabudgetary 
funds (Pension Fund, Croatian Health Insurance Fund, Employment Fund and other extrabudgetary 
funds established by the Government). 
153. The Law applied to all public procurements with the total value of goods, services and works 
exceeding HRK 200,000 (US$32,000) in a fiscal year .  Bidders, regardless of their residence and 
headquarters, except when the purchaser would limit th e participation in tenders  to domestic suppliers 
(i,e, apply national preference), were allowed to par ticipate in tenders.  The Law stipulated conditions 
and liabilities of the purchaser with regard to app lication of national preference, as well as other 
conditions concerning government  procurement including procurement implementation, pre-
procurement, international tendering (obligatory for works and goods with total invoice value 
exceeding HRK 12 million (US$2 million), or HRK 6 million (US$1 million) for services), the 
procurement procedure, conditio ns for tendering, evaluation and comparison of offers, and 
implementation and monitoring of the implementation of the Law. 
154. A member expected Croatia to become memb er of the Agreement on Government Procurement 
by tabling a schedule of commitment s to the GPA Committee no later than three months after the date of 
accession to the WTO.  In reply, the representative of  Croatia stated that, mindful of the rather limited 
and selective present membership of the Agreemen t on Government Procurement and that no major 
obstacles for international bidders were experienced in enforcement of the national law on government 
procurements, his Government would apply offici ally for observer status to the Agreement on 
Government Procurement.  This would enable Croati a to get more acquainted with the practical aspects  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 51 
 
 
of the Agreement's disciplines and determine an adequa te coverage and staging, in order for Croatia to 
start negotiations on accession to the Ag reement at an appropriate stage. 
155. The representative of Croatia confirmed that hi s Government had applied officially for observer 
status in the Committee on Govern ment Procurement on 14  June 1999.  This step would enable Croatia 
to get more acquainted with the pr actical aspects of the disciplines of the Agreement and determine the 
adequate coverage and staging of Croatia's commitments. 
156. The repr esentative of Croatia confirmed that Croatia will initiate negotiations for membership 
in the Agreement on Government Procurement upon acces sion by tabling an entity offer at that time.  
He also confirmed that, if the results of the negotiations are satisfactory to Croatia and the other members of the Agreement, Croatia will complete negotiations for membersh ip in the Agreement by 
31 December 2000.  The Working Party took note of this commitment. 
Transit
 
157. The representative of Croatia said that tran sit of goods through the customs territory of the 
Republic of Croatia was re gulated by Articles 275 to 283 of the Customs Law.  In addition, provisions 
concerning transit transport were included in the Ar ticles dealing specifically with rail, road, sea, 
waterways and air transport, as we ll as in the Articles concerning de spatch of goods to another customs 
office for customs clearance.  The carrier submitted tr ansit documents to the customs office at the point 
of entry.  Customs charged a stamp tax at a flat rate of HRK 10 per customs declaration for the services rendered.  The customs office would inspect the goods and transit vehicles, and provide an escort to the 
customs office at the point of exit .  The carrier was responsible for the carriage of goods and the transit 
documents within the customs territory.  The customs office of exit would check the transit documents 
and customs marks and, if necessary, inspect the goo ds and vehicles.  Goods prohibited to import into 
Croatia could not be carried in tr ansit through the customs territory. 
158. Croatia made no distinction on the basis of  the flag of the carrier, the place of origin, 
departure, entry, exit or destination, or on any ci rcumstances relating to the ownership of the goods or 
the means of transportation.  Based on a Decisi on on special measures of customs surveillance on 
import, export and transit of certain goods (pet roleum, petroleum derivatives, tobacco and tobacco 
products, coffee, alcohol, alcohol drinks, beer, movable cultural artifacts - archeological and 
ethnological artifacts, old furniture, old paintings and sculptures, old musical instruments, etc,), such 
goods were only allowed to enter or exit Croatia at designated border crossing points, determined in 
coordination with Slovenia (5), Bosnia and He rzegovina (7), and the former Republic of 
Yugoslavia (1), or through 4 marine ports.  The Deci sion was not applicable to air and rail transport. WT/ACC/SPEC/HRV/7/Rev.2 
Page 52  
 
159. A member noted reports that Croatia was blocking transit trade from the Bosnian Serb 
Republic, and would appreciate Croa tia's views and assurances on this point.  The representative of 
Croatia replied that Croatia ha d not blocked transit trade from the Bosnian Serb Republic.  The 
reconstruction of bridges across the river Sava ( border crossings Slavonski Brod - Bosanski Brod, 
Gradiška - Bosanska Gradiška, Hrvatska Dubica - Bosanska Dubica) had caused difficulties and the 
closing of some border crossings.  At the same time, other temporary border crossings had been 
established to enable transit.  Freedom of tr ansit was assured by Croatia's Customs Law and 
International Agreements.  Croatia was obliged to  ensure freedom of transit according to several 
international conventions, including the Convention on the contract for the international road transport 
(CMR), the Customs convention on international tr ansport of goods based on the TIR carnet, the ATA 
Convention, and the Convention on temporary admiss ion.  He assured the Working Party that Croatia 
provided, and would continue to provide, freedom of  transit to the Bosnian Serb Republic as well as 
to all other countries in accordance with Article V of the GATT 1994. 
160. The representative of Croatia confirmed that  his Government would apply its laws and 
regulations governing transit operations and would act in full conformity with the provisions of the 
WTO Agreement, in particular Article V of the GA TT 1994.  In this regard, he stated that Croatia 
would not deny right of transit to exports from any country.  The Working Party took note of this commitment. 
Agricultural Policies
 
161. [The representative of Croatia said that all qua ntitative restrictions a nd supplementary fees and 
charges for imported agricultural products, including sp ecial compensatory fees and variable levies, had 
been abolished with the introduction of the new cust oms tariff on 1 July 1996.  The new tariffs were 
compound rates, consisting of an ad valorem  and a specific duty elem ent, for several products. 
162. The Government guaranteed prices for th e following commodities:  wheat, sugar beet, 
sunflower, soybeans, rapeseed and tobacco.  [The guaranteed prices appli cable in 1998 are listed in 
document WT/ACC/HRV/39/Add.2, reply 22].  The system of guaranteed pr ices was implemented 
through the Directorate for Commodity Reserves.  The price for milk was also guaranteed, but the 
guarantee had not been enforced recently as the domestic price had exceeded the intervention level.  The 
abolition of the system of guaranteed prices was a long-term policy objective.  A recent step towards this 
objective had been a significant decr ease of guarantee d prices for the year 1999, especially for wheat 
(down 32 per cent). 
163. The budget expenditures for production and input subsidies to the agricultural sector amounted 
to HRK 599.3 million (average 1996-1 998), representing 4.2 per cent of the value of total agricultural  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 53 
 
 
output in the period 1996-1998.  Production subsidies had been provided for milk, sugar beet, sunflower, 
soybeans, rapeseed, tobacco, original-breed livestock , meat and bone flour, milk, semen, grape on island 
vineyards, honey and olives.  Major input subsid y items were mineral fe rtilizers and certified 
agricultural seeds.  Cr oatia did not provide export subsidies for agricultural and food products, and 
would be prepared to bind its agricultural export subsidies at zero as refl ected in its schedule of 
commitments annexed to Croati a's Protocol of  Accession. 
164. Croatia was reforming its syst em of agricultural subsidies.  This was a lengthy process as it 
required the establishment of a land registry to allow the Government and the Ministry of Agriculture 
and Forestry to define "less favou red areas" and other factors determining subsidy payments.  The new 
system, which would be implemented following Parliament's approval of the State budget for 1999, would correspond to the requirements of the Agreement on Agriculture.  This budget increased 
allocations for measures in line with Annex 2 of Agreement on Agriculture, while reducing the budget  
share of price support measures.  Croatia was also introducing area payments in crop production, selective payments (per head) in livestock production and investment aids for vineyards and orchards 
within the framework of the new system, approved by  Parliament in March 1999.  Input subsidies for 
mineral fertilizers and fuel, as well as production su bsidies for sugar beet, soybean, sunflower seed 
and rapeseed had been abolished.  He confirmed th at Croatia would not appl y any kind of subsidy to 
agro-processing industries. 
165. Some members noted that Cr oatia was requesting a transition period for an undefined period 
to set its aggregate measurement of support (AMS) at a level 9 per cent higher than its AMS would be 
if worked out under the requirements of the Agreem ent on Agriculture.  Croatia was asked to clarify 
which base period it would propose to use, and whether its request for transition could be 
reconsidered if an earlier base period was chosen, and to provide information on the total value of 
agricultural production for non-product specific suppor t and the value of production for each product 
receiving support. 
166. [In reply, the representative of Croatia said  that] Croatia takes a co mmitment to decrease the 
AMS ceiling relating to the 1996-1998 base period by 20 per cent in equal annual instalments within a 
period of five years from the date of accession.  The AMS calculations are presented in the revised 
consolidated technical document on domestic suppo rt and export subsidies in agriculture – ACC/4 
notification (pending). 
167. Croatia's commitments on agricultural tariffs , on domestic support and export subsidies for 
agricultural products are in the Schedule of C oncessions and Commitments on Goods annexed to 
Croatia's Protocol of Accession to the WTO.] WT/ACC/SPEC/HRV/7/Rev.2 
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[to be completed] 
Trade in Civil Aircraft
 
168. A member sought a commitment from Croatia to  adhere to the WTO Agreement on Trade in 
Civil Aircraft from the date of accession.  The repr esentative of Croatia confirmed that Croatia would 
become a party to the Agreement on Trade in Civil Aircraft. 
169. The representative of Croa tia confirmed that Croatia would implement the Agreement on 
Trade in Civil Aircraft without exceptions or tr ansitional period from the date of accession.  The 
representative of Croatia confirmed that Croatia would become a signatory to the Agreement on Trade in Civil Aircraft upon accession to the WTO.  The Working Party took note of this commitment. 
Trade-Related Intellectual Property Regime
 
1. General 
(a) Intellectual property policy 
170. The representative of Croatia said that Croa tia had adopted the former  Federal (Y ugoslav) Law 
on the Protection of Inventions, Te chnical Improvements and Distinctive signs (NN 53/91).  The Law 
had been changed and amended in April 1992, and the title changed to Industrial Property Law, 
governing patents, trade and service marks, and industr ial designs.  The system of industrial property 
protection was under revision, and as  part of the reforms each area of industrial property would be 
governed by a separate law.  Current legislation in cluded a technical advance criterion which would not 
be included in future legislation. 
171. A member was concerned about the pace of dr afting and ratification of  intellectual property 
laws in Croatia, and encouraged the Government to  strengthen its efforts to enact legislation and 
establish the necessary administrative framework for effective implementation prior to WTO accession.  
Asked whether Croatia would seek tr ansitional arrangements, the represen tative of Croatia replied that 
Croatia would respect the provisions  of Article 65.3 of the TRIPS Ag reement.  A member stated its 
policy that acceding countries be in full conformity wi th the TRIPS Agreement on the date of accession, 
with no transition permitted.  Arti cle 65.2, 3 and 4 were included to provide a period of transition for 
those countries that were alread y members of the GATT and were en titled to be Members of the WTO 
without additional accession negotiations.  The transition provisions in  Article 65.2, 3 and 4 were part of 
the balance achieved between developed and devel oping countries regarding intellectual property, 
recognizing that most developing and non-market economy countries had further to go than did 
developed countries to bring their laws and practices into  conformity with TR IPS.  Newly acceding 
countries should have no such need since they coul d make the necessary changes during the course of  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 55 
 
 
accession negotiations, to become affective on the date  of accession, if not befo re.  Croatia should report 
to the Working Party on its specific plans to alter it s current legislation to be in a position to fully 
implement the TRIPS Agreement by the date of accession. 
172. The representative of Croatia said that ha rmonization of Croatia's legislation with the 
requirements of the TRIPS Agreement had been acc omplished with the introduction a new Trademark 
Law, a new Law on Geographical Indications, a new Pa tent Law, a new Law on Industrial Design, and a 
Law on the Topographies of In tegrated Circuits.  In the area of copyright, Croatia intended to introduce 
a new Law on Copyright and Neighbour ing Rights, but would in the inte rim ensure compliance with the 
TRIPS Agreement by amending the existing Copyrigh t Law.  Parliament ha d passed the new laws on 
30 June 1999.  In addition, Croatia would apply the provisions relating to  the enforcement of intellectual 
property rights in the new Customs Law, also passed by Parliament on 30 June 1999.  An overview of 
Croatia's intellectual property le gislation is provided in Table 10. 
(b) Responsible agencies for polic y formulation a nd implementation 
173. The representative of Croatia said that the Stat e Intellectual Property O ffice of the Republic of 
Croatia had been the competent authority for industrial property since its establishment, and for 
copyright and neighbouring rights since November 1996.  The Ministry of Agriculture and Forestry was 
the competent authority for the protection of new plant varieties. 
(c) Participation in international intellectual property agreements 
174. The representative of Croatia said that Croa tia was a party to the C onvention Establishing the 
World Intellectual Property Orga nization;  the Paris Convention for the Protection of Industrial 
Property;  the Madrid Agreement Concerning the International Registration of Marks;  the Nice Agreement Concerning the Internatio nal Classification of Goods and Se rvices for the Purposes of the 
Registration of Marks;  the Locarno Agreement Establishing an Interna tional Classification for 
Industrial Designs;  the Berne Convention for the Pr otection of Literary and Artistic Works, Paris Act 
1971;  the Brussels Convention Relating to the Distribution of Programme - Carrying Signals 
Transmitted by Satellite;  and the Universal Copyright Convention, 1952 and 1971.  Croatia intended to 
seek membership of the Rome Convention upon enac tment of legal provisions granting protection for 
phonogram producers  and broadcasting organizations in  compliance with the Convention.  This was 
likely to happen in 1998.  Croatia had deposited the instrument of accession to the Patent Cooperation 
Treaty with the Director-General of the World Inte llectual Property Organization on 30 April 1997.  As 
stated in the instrument of acces sion, the Patent Cooperation Treaty entered into force in Croatia on 
1 July 1998.  Croatia also intended to accede to th e Hague Agreement Concerning Deposit of Industrial 
Designs in the near future. WT/ACC/SPEC/HRV/7/Rev.2 
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(d) Application of national and MFN treatment to foreign nationals 
175. The representative of Croatia said that Croatian  legislation granted natio nal treatment to foreign 
nationals, while MFN treatment was not applied for th e time being.  Foreigners and nationals enjoyed 
equal treatment in civil and criminal procedures. 
2. Substantive standards of protection, including procedures for the acquisition and maintenance of 
intellectual property rights 
176. Regarding acquisition of intellectual property  right and know-how, the representative of Croatia 
said that the Law on Foreign Trade Operations, Chap ter VIII, had contained cer tain restrictive clauses 
on acquisition of know-how from foreigners, but this  legislation had been abolished (January 1996). 
(a) Copyright protection 177. The representative of Croatia said that the ba sic provisions on copyright  and neighbouring rights 
were contained in the Chapter on basic freedom and rights of men and citizens in the 1990 Constitution.  
In accordance with a 1991 Law on adoption of Yugos lav federal laws in the areas of education and 
culture, Croatia had adopted the Copyright Law of  1978 as amended in 1986 and 1990, with further 
changes and amendments under Croatian Law of 1993.  Croatian legislation pr otected performers only, 
but also regarding the fixation of a picture or pi ctures in combination with sound.  An Amended 
Copyright Law, ensuring protection for phonogram producers and broadcasting organizations in 
accordance with the requirements of the TRIPS Ag reement, had been submitted to the legislative 
procedure.  According to Article 39 of the M odified and Amended Copyright Law, the Law was 
applicable to phonograms and performanc es lawfully fixed up to fifty years prior to the year of entry 
into force of the amended Law (July 1999).  Croati a intended to introduce a new Law on Copyrights and 
Neighbouring Rights to harmonize its le gislation with all aspects of ex isting international standards.  
This Law would be drafted after th e entry into force of the amended Copyright Law.  The Modified and 
Amended Copyright Law, passed by Parliament on 30  June 1999, had been in force and implemented 
since mid-July 1999. 
178. Copyright covered economic rights and moral ri ghts.  Economic rights were transferable inter 
vivos and mortis causa;  moral rights were only transferable mortis causa.  The general term of duration of economic rights was the life of the author and 50 years after his/her death.  Special terms of 
protection of anonymous and pseudonymous works we re 50 years from the day the work had become 
available to the public, and 25 year s for photographic films, photographic works and works of applied 
art.  The duration of moral rights was not limited.  Computer programmes we re protected as literary, 
scientific and artistic works, and databases could be  protected as collections of works.  Persons could 
become owners of copyright by virtue of law in th e course of employment or organization of collective  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 57 
 
 
works such as the creation of databases or encyclop aedias.  Copyright legislation provided for exclusive 
distribution rights, including rental  and lending rights, for artists and performers.  Croatia had adopted 
the Berne Convention, ratified by the former Yugosl avia, with a reservation relating to the right of 
translation.  However, the Copyright Law granted th e author of a work published in a foreign language 
and enjoying protection under the provi sions of the Berne Convention, the right to remuneration for the 
translation.  The said reservation on the Berne C onvention had been removed in the Amended Copyright 
Law submitted to the legisla tive procedure on 24 March 1998. 
179. Limitations to the exclusive right were regul ated under the Law.  Free  use (exploitation) of 
works was allowed for personal use, public informa tion or for educational or scientific purposes. 
(b) Trademarks, including service marks 180. The representative of Croatia said that the pr otection of trade and serv ice marks wa s regulated 
on the basis of the Industrial Prop erty Law, Regulations for the Procedure for the Grant of Trademark 
Rights, and the Law Governing Ad ministrative Fees for the Establ ishment of Rights of Industrial 
Property.  The acquisition of trademark rights was ba sed on registration;  the procedure was instituted by 
filing an application with the State Intellectual Property Office of the Republic of Croatia.  A granted 
right was entered in the trademark re gister and published in the official gazette.  A mark was valid for a 
period of ten years from the day the trademark applica tion was filed.  The validity could be extended an 
unlimited number of times provided the trademark was used and maintained through payment of the 
prescribed administrative fees.  The State Intellectual Property Office could decide to terminate a 
trademark not used by the owner for any unjus tified reason for more than five years. 
181. The representative of Croati a said that Parliament had passed a new Trademark Law on 
30 June 1999.  The Law had entered into force in mid- July 1999, however, due to the time need for all 
preparations required under the new system establ ished by the Law, the Law would be implemented 
from 1 January 2000. 
(c) Geographical indications, in cluding appellations of origin 
182. The representative of Croatia said that the pres ent system of protection was based on Articles 37 
to 43 of the Industrial Property La w.  The area was also regulated under the Law on Wine and 
Regulations on the Quality of Wine and the Quality of Spirits.  An appellation of origin was established 
by entering the geographical name an d its related product in a register kept by the State Intellectual 
Property Office.  Entries into th e register were made ex offi cio upon proposals from the Croatian 
Chamber of Commerce.  According to Article 40 of the Industrial Property Law, the Croatian Chamber 
of Commerce determined the geogra phical names to be protected by an appellation of origin;  the 
products which could be put in circulation with the spec ified appellation of origin;  the place or territory WT/ACC/SPEC/HRV/7/Rev.2 
Page 58  
 
a product was originating from;  how products shou ld be marked;  and deta iled requirements on the 
granting of rights to use certain marks.  For wines,  these matters were regulated by the Law on Wines 
and the Regulations Concerning Wines (NN 34/95 and 96/96).  Wines meeting the requirements of 
controlled origin could be entered in the register of protected appellations of or igin by the State Office 
upon a proposal by from the Croatian Chamber of Co mmerce and prior examination of the request by 
the Ministry of Agriculture and Forestry.  The appella tion of origin of a product could be established in 
favour of a foreign person on the basis of recipr ocity under international agreements concluded or 
acceded to by the Re public of Croatia. 
183. Croatia had introduced a new separate Law on Ge ographical Indications ba sed on Articles 22 to 
24 of the TRIPS Agreement.  Parliament had passe d the Law on 30 June 1999 and it had entered into 
force in mid-July 1999.  However, due to the time needed  for all preparations required under the new 
system established by the new Law, the Law woul d be implemented from 1 January 2000.  A provision 
to refuse or invalidate the registration of a trad emark containing or cons isting of a geographical 
indication for wines and spirits not having this orig in would be included in the new (draft) Trademark 
Law (Article 5). 
(d) Industrial designs 
184. The representative of Croatia said that indus trial designs were regula ted under the Industrial 
Property Law and Regulations on the Procedure for the Grant of Rights to Models or Designs.  
Parliament had passed a new Law on  Industrial Design in conformity with the TRIPS Agreement, in 
particular its Articles 25 and 26, on 30 June 1999 a nd it had entered into force in mid-July 1999.  
However, due to the time needed for all preparatio ns required under the new sy stem established by the 
new Law, the Law would be im plemented from 1 January 2000. 
185. A right to a model or a design was granted for a period of ten years as from the date of filing the 
application with the State Intellec tual Property Office.  The right wa s non-renewable.  Textile designs 
were protected cumulatively by the C opyright Act, as a work of applied art and industrial design, and by 
the Industrial Property Law as a model or design.  In the latter case, the applicant would need to indicate 
whether protection was sought for three-dimensio nal (model) or two-dimensional design (design). 
(e) Patents 
186. The representative of Croatia said that a firs t draft of a new Patent Law, based on the WIPO 
model law and Austrian le gislation, remained under discussion with in his Government.  Parliament had 
passed the new Patent Law on 30 June 1999 and it had en tered into force in mid-July 1999.  However, 
due to the time needed for all preparations require d under the new system established by the new Law, 
the Law would be implemented from 1 January 2000.  Other legislation relevant to the Law would also  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 59 
 
 
be adopted, including the Law on Agents, the Law on  Fees, the Regulation on Expenses, the Law on 
Inventions by Employees, and the Law on Confidential Inventions. 
187. A patent was valid for a period of 20 years c ounting from the date of filing the application.  
Microorganisms and microbiological processes were patentable under the Rules on Procedure for Patent 
Grant. 
188. Provisions on compulsory lice nsing could be found in the Industr ial Property Law (Article 139).  
A request for the grant of a compulsory licence could not be submitted earlier than four years after the 
filing date of the patent application, or three years af ter the date of the patent grant if this term expired 
earlier.  According to the Law, the patent owner wo uld be considered not usi ng or insufficiently using 
the patent if, inter alia, domestic demand was satis fied by importation to a great extent, or the 
importation of the products manufactured according to  the protected invention hampered or obstructed 
the industrial application in the country.  No compulso ry licence had been issued thus far.  Croatian 
legislation on compulsory licensing would be harm onized with Article 31 of the TRIPS Agreement in 
the new Law on Patents. 
189. The fees and charges involved in granting a pate nt were established in accordance with the Law 
on Administrative Fees in the Field of Industrial Property and the Decision on the Procedure Special 
Charges and Information Service Charges of the State Intellectual Property Office. 
(f) Plant variety protection 190. The representative of Croatia said that this area was regulated by the Law on the Protection of 
Agricultural Plants.  The Law, which regulated the pr otection of new plant varieties, had been enacted in 
November 1997 and became effec tive on 13 December 1997.  The Law was in compliance with the 
UPOV Convention, which Croatia intended to join .  National treatment was accorded on the condition 
of reciprocity, as provide d by the UPOV Convention. 
(g) Layout designs of integrated circuits 
191. The representative of Croatia said that Cr oatia had introduced a Law on the Topographies of 
Integrated Circuits in compliance with the provision s of Articles 35 to 38 of  the TRIPS Agreement.  
Parliament had passed the Law on 30 June 1999 and it had entered into force in mid-July 1999.  
However, due to the time needed for all preparatio ns required under the new system established by the 
new Law, the Law would be im plemented from 1 January 2000. WT/ACC/SPEC/HRV/7/Rev.2 
Page 60  
 
(h) Requirements on undisclosed information,  including trade secrets and test data. 
192. The representative of Croatia said that a Law on  the Protection of Data Secrecy had entered into 
force at the end of 1996.  Clauses regulating th e protection of information within government 
administration or by enterprises themselves c ould be found in the Law on General Administrative 
Procedure (Article 150), the Law on Government Offi cials and Employees (Article 32), the Penal Law 
(Article 295), the Labour Law (Art icles 89, 92 (paragraph 4), 93 and 155), the Trade Law (Article 58) 
and the Company Law (Articles 248, 273 and 629).  Te st data and other information supplied in the 
context of approving the marketing of pharmaceutical and of agricultural chemical products were 
protected by special regulations (b y-laws) applied by the Ministry of Health and the Ministry of 
Agriculture and Forestry.  The rules did not differ from the normal provisions applied in other countries.  
Article 16 of the Law on Medici nes and Medical Products stipulated that documents received on 
pharmaceuticals or medical products should be trea ted as trade secrets. 
3. Measures to control abuse of intellectual property rights 
193. The representative of Croatia said that mechan isms for the protection of intellectual property 
rights existed in administrative, civi l and penal law.  Abuse of copyri ght and the right of performers was 
controlled by agents of the organization of aut hors or the organization fo r performers' rights.  
Representatives registered with the State Intellectual Property Office could act on  behalf of foreign and 
domestic legal and natural persons in the procedure for protection of industrial property rights.  A new 
Law on Enforcement included compulsory measures (fines, arrest and imprisonment) which could be 
applied in an expe dite procedure. 
194. Punishment - fines or imprisonment - for the infringement of copyright was set out in the Penal 
Law as well as in the Amended Copyright Law.  Fi nes for infringement of the rights of authors or 
performers could amount to  (maximum) HRK 60,000. 
4. Enforcement 
195. The representative of Croatia said that the La w on Enforcement, relating to the enforcement of 
court decisions, entered into force on 12 August 1996.  [A translated copy of the relevant provisions of 
the law dealing with the enforcement of intellect ual property protection w ould be provided to the 
Working Party.]  Articles 298 and 299 of the Law contained provisio ns on provisional measures.  A 
court could also order provisional measures at the request of the infringed party in accordance with 
Article 442 of the Law on Legal Proceedings.  In his vi ew, Croatian legislation fulfilled the requirement 
of Article 44 of the TRIPS Agreemen t regarding the right of a party to ask for injunctions.  He also 
noted that the Law on the Protection of Market Co mpetition could be invoked in disputes over the 
infringement of intellectual property be fore a commercial court in Croatia.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 61 
 
 
196. In the combat against illegally produced phonogr ams, the authorities in Croatia had seized 
12,899 video tapes, 9,646 audio tapes and 4,873 co mpact discs in 1996.  During 1997, 14,405 video 
tapes, 11,986 audio tapes and 2,920 compact discs had been seized.  During 1998 and the first quarter 
of 1999, the Department for Economic Crime Preventi on of Ministry of Interiors (police) had brought 
149 criminal charges for video piracy, 138 criminal charges for audio piracy and 47 criminal charges 
for trademark counterfeiting.  In the same period, the Department had seized temporarily 16,051 video 
tapes, 34,442 audio tapes, 6,618 CDs and 6,390 pro ducts bearing counterfeited trademark.  Criminal 
proceedings relating to these charges were under way. 
(a) Civil judicial proc edures and remedies 
197. The Commercial Courts seated  in Zagreb, Osijek, Rijeka and Split had initial jurisdiction over 
intellectual property matters.  The High Commerc ial Court (in Zagreb) was the competent second-
instance body for the protection of in tellectual property.  Decisions of the High Commercial Court could 
be appealed to the Supreme Court of the Republic  of Croatia, which c ould also decide on the 
infringement of procedural rights.  The procedures in a case of infri ngement before a court were laid 
down in the Law on Civil Procedure, which also cont ained provisions on the right to obtain information 
to develop the case of a right holder.  Depending on the complexities of the case, the time between the 
initiation of the case before the c ourt, and the court's decision, could take from two to three months to 
more than one year.  Court decisions  were set out in writing and substant iated in accordance with Article 
338 of the Law on Legal Proceedings. 
198. The dissatisfied party to a dispute could invoke regular legal remedies (appeal and objection) or 
extraordinary legal remedies (request for the pr otection of legality, review or repetition of the 
procedure).  For example, a reque st for review of a decision of the High Commercial Court should be 
filed with the Supreme Court within 30 days of receip t of the decision of the appellate court.  A request 
for the protection of legality should be filed with th e Supreme Court by the Croa tian State At torney if 
the law or a treaty had been violated by a final decision. 
(b) Provisional measures 199. The representative of Croatia said that th e Law on Enforcement contained provisions on 
provisional measures.  In respect of infringement of copyright, a court could order provisional seizure or 
prohibit the continued used of the disputed objects or works.  The competent police administration could 
prohibit cultural or artistic performances at the request  of the author or a prof essional association.  The 
financial police could temporarily se ize objects, documentation or financ ial means utilized in a criminal 
or economic offence or infringement.  As a general rule, courts did not have the authority to introduce 
provisional measures inaudita  altera parte, but could do so if th e rights of the infringed party were WT/ACC/SPEC/HRV/7/Rev.2 
Page 62  
 
seriously threatened, and against security for any da mage inflicted on the other party as a result of the 
provisional measure.  In addition, Article 442 of th e Law on Civil Procedure stipulated that judicial 
authorities could introduce provisional measures inaudita  altera parte for the purpose of eliminating an 
immediate threat of un lawful damage, removing irreparable damage, or to prevent violence. 
(c) Administrative proc edures and remedies 
200. Administrative procedures in the area of i ndustrial property were carried out by the State 
Intellectual Property Office.  An ad ministrative lawsuit against an act of the Office could be initiated 
before the Administrative Court.  The administra tive procedure itself was governed by the Law on 
Industrial Property, the Law on General Administ rative Procedure and the Law on Administrative 
Lawsuits. 
(d) Special border measures 
201. The representative of Croatia said that Croa tia had recently adopted the Law on the Ratification 
of International Convention on the Harmonization of Bo rder Controls of Goods.  Croatia planned to 
introduce a border control system concerning the infri ngement of intellectual property rights, with due 
consideration to Articles 51 to 60 of the TRI PS Agreement, through the new Customs Law which 
Parliament had passed on 30 June 1999. 
(e) Criminal procedures 202. The representative of Croatia said that ac tion in cases of copyright piracy and trademark 
counterfeiting could be instituted ex officio by the State attorney on the basis of criminal charges 
brought by the author or other copyright holder, the trademark holder, the police or any other 
government body (financial police, market inspector ate) which, in the course of its activity, had 
detected a committed criminal act.  Remedies - including seizure, forfeiture and destruction of the infringing goods - were available in the Penal Law, no tably in Chapters XVII and XXI, as well as in the 
Amended Copyright Law.  The procedural criminal  provisions were contained in the new Law on 
Criminal Procedure in force since January 1998. 
203. The representative of Croatia that his Govern ment would apply fully the provisions of the 
Agreement on Trade-related Aspects of Intellectual Property Rights (TRI PS) by the date of its accession 
to the WTO without recourse to a transitional period.   The Working Party took note of this commitment. 
Policies Affecting Trade in Services
 
204. The representative of Croatia said that, as a market-oriented country in transition, Croatia was 
adjusting its legislation acco rding to the principles of liberaliza tion advocated by the WTO.  Accepting  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 63 
 
 
fully the rules and principles of the General Agr eement on Trade in Services, Croatia was strongly 
committed to the rules preventing discriminatory meas ures and restrictions related to market access and 
national treatment in all modes of supply.  He noted that Croatia w ould seek MFN exemptions in the 
road transport area, [audiovisual services] and concerning acquisiti on of real esta te (reciprocity 
requirement).  These exemptions  would apply to all countries. 
205. Regulation of services activ ities was within the competence various institutions, including the 
Ministries of Science and Tec hnology;  Finance, Economy, Mar itime Affairs, Transport and 
Communications;  Health;  Education and Sports;  Ur ban Planning, Cons truction and H ousing;  Labour 
and Social Welfare;  and the Croatian Securities Commission, etc.  Several new laws and amendments were in preparation (listed in document WT/ACC/HRV/30, reply 163).  Work permits were issued in 
accordance with the Law on Employment of Forei gn Persons.  The Law did not make any distinction 
between short-term or long-term employment, and stipulated that work permits were issued in 
concordance with the length of employment contr acts, with validity up to two years (renewable). 
206. The Company Law, the basic act for commenc ing business activity in Croatia, stipulated the 
conditions for establishing commercial presence in Cr oatia.  He confirmed that commercial presence 
could take the form of a fully new company, subsidia ry, branch and/or any kind of joint-venture, and 
that commercial presence with respect to the degr ee of foreign ownership was not limited.  In 
response to a specific question, he replied that the Law defined a branch office as serving the purpose 
of carrying out business activities of a company or an individual merchant outside the place of the 
registered office.  A branch office was not a separ ate legal entity;  its rights and obligations were 
vested in the parent company.  Branch offices were registered with the appropriate registration court.  
Applications should be accompanied by (i) an excerpt  from the home court register of the founder or a 
valid document indicating the legal form of the f ounder and the date of establishment;  (ii) the 
decision of the founder to set up a branch office;  (iii) a certified copy of the foundation statement, 
articles of association or memorandum of assocition of  the founder;  and (iv) a certified abbreviated 
(most recent) annual balance sheet of  the founder.  A foreign person c ould have several branch offices 
in Croatia.  The founder was required to designa te a person (or persons), residing in Croatia, 
authorized to represent the branch office in Croatia.  The scope of activities allowed to be carried out 
by a representative office was regulated by the Law on Trade.  A representative office could not be 
used to carry out regular business activities.  Be fore opening a representative office foreign persons 
were required to register it in the Register of Representative Offices, kept by the Ministry of the 
Economy.  The procedure for opening and registration of representative offices was regulated by the Decree on conditions for Establis hment and Operation of Foreign Representative Offices in the 
Republic of Croatia (published in the Official Gazette on 24 January 1997). WT/ACC/SPEC/HRV/7/Rev.2 
Page 64  
 
207. The representative of Croatia provided informa tion on the establishment of a bank, branch and 
representative office (circulated in document WT /ACC/HRV/17 of 29 July 1996) .  Foreign banks were 
admitted in Croatia on the basis of reciprocity.  The reciprocity requirement had been removed through 
Amendments on the Banking Law, wh ich had entered into force on 29 June 1998.  The appropriate bank 
licence was issued by the Natio nal Bank of Croatia.  The mini mum capital requirement for the 
establishment of a bank amounted to DM 5 millio n in local currency, or DM 15 million for banks 
registered for transa ctions with foreign countries.  Savings ba nks could be established with a minimum 
capital equivalent to DM 1 million, but these banks were not allowed to accept  deposits from, or extend 
credits to, legal persons or make tran sactions with foreign countries.  A representative offi ce of a foreign 
bank could only engage in market research, promotio n or representational activities.  Parliament had 
adopted a new Banking Law on 18 December 1998 (Off icial Gazette No. 161/98).  Its main features 
related to the provisions reinforcing the competence and the supervisory rôle of the Croatian National 
Bank (Central Bank) in securing the stability of the banking system in Croatia.  The reciprocity 
requirement for establishment had be en abolished definitely in the new Law.  According to the new 
Law, the minimum capital requirement for the establ ishment of a bank amounted to HRK 20 million, or 
HRK 60 million for banks registered for transactions with foreign countries.  Regarding brokerages and 
securities houses, foreign operator s would need a local intermediary.  Foreign companies with operating 
presence in Croatia could manage and underwrite share issues, otherwise a local partner would be 
required.  Non-residents were not allowed portf olio investment in short-term securities. 
208. The insurance sector was governed by the La w on Insurance.  Foreign insurance companies 
were not permitted to operate thr ough branch offices in Croatia, but would need to establish either a 
wholly-owned or a joint-stock company, only as a su bsidiary.  This limitati on would be abolished and 
branching in the insurance industry allowed for non -residents upon accession to the WTO.  Croatia had 
introduced certain restrictions on cross-border provis ion of insurance and re-ins urance to reduce capital 
outflows and encourage the development of a domestic  insurance market.  Restrictions on modes 1 and 
2 in  reinsurance and retrocession would be re moved upon accession to the WTO.  Companies not 
headquartered in Croatia were, for example, only allo wed to provide life and non-life insurance against 
risks not covered by Croatian companies.  From th e date of accession, cros s-border provision of MAT 
insurance services and a number of other insurance services would be allowed.  However, full opening 
of Croatria's insurance sector to direct foreign competition, particularly in all aspects of direct life and non-life insurance on a cross-border basis, would put the domestic sector in unequal position with insurance industries in neighbouring countries whose national markets were not yet fully liberalised. 
209. The telecommunications sector was currently re gulated by the Ministry of Maritime Affairs, 
Transport and Communications.  Competition was allo wed in all telecommunication services sectors 
except basic services in fixed networks (voice tele phony and telex) and leased lines.  Foreign companies  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 65 
 
 
could only provide basic telecommuni cation services through, and in ag reement with, Croatian Post and 
Telecommunications (HPT).  Other services, such as mobile telecommunica tion networks, electronic 
mail, on-line information, electronic data interchange and va lue-added services could be provided by a 
Croatian subsidiary operating with  a concession from the Telecomm unications Council.  The "Law on 
the separation of the Croatian Post and Telecommunic ations into the Croatian Post and the Croatian 
Telecommunications" had been adopted on 10 July 1998.  The Law stipulated the actual separation into 
two joint-stock companies - one for postal services, th e other for telecommunicati ons - to take effect as 
from 1 January 1999.  According to the Law on Tel ecommunication, foreign entities could hold up to 
25 per cent of the capital of the radio and television c oncessionaire in radio,  television and cable 
television concessions.  Until 1 January 2003, HT (Croatian Telecommunication) would be the sole 
supplier of fixed network infrastruc ture and provider of basic teleco mmunication services.  From that 
date, the market would be opened to other providers .  The situation was similar for enhanced telecom 
services and other telecom services, where the ma rket would be opened for other providers as of 
1 January 2001. 
210. The State-owned Croatian Ra ilways (HZ) held a monopoly on transportation of passengers and 
goods by rail, but was exposed to heavy competition fro m other modes of carriage, in particular road 
transport.  Foreign companies could provide publ ic transportation through a registered Croatian 
subsidiary licensed by the authorities concerned.  The Maritime Code required foreign-flag carriers 
transporting passengers and goods betw een Croatian ports to hold a licen ce for cabotage.  Croatia was 
requesting an MFN exemption on road passenger and fre ight transportation because of the  commercial 
characteristics of road transport services in the region.  These services were regulated through 
bilateral or plurilateral agreements on road trans port, which reserved or limited the supply of road 
transport services and specified operating condi tions, including transit permits quotas and/or 
preferential road taxes of transport services into, in , across and out of the territories of the parties 
concerned.  The MFN exemption was therefore essen tially of commercial nature, and was related to 
the issue of competitiveness on the European road passenger and freight transport market. 
211. Concerning professional services , he said that legal services a nd legal assistance could only be 
provided by lawyers and lawyers' associations regi stered with the Bar Council of the Republic of 
Croatia.  Registration in the Bar Council required Cr oatian citizenship, a degree from the Faculty of 
Law, passing of the bar examination in Croatia, an d high proficiency in the Croatian language.  The 
citizenship requirement applied only for legal proc edures relating to Croatian Law, and not for legal 
consultancy on foreign and interna tional law (through consultancy firms).  Parties could be represented 
by lawyers registered in other count ries in disputes before selected  (arbitration) courts in matters 
involving international issues.  Fo reign auditing companies - not esta blished in Croatia - could access 
the Croatian market only in joint operation with a local partner. WT/ACC/SPEC/HRV/7/Rev.2 
Page 66  
 
212. A new Law on the Tourist Industry had entere d into force at the end of 1996, harmonizing 
Croatian legislation with  regulations applicable in Europe an Communities' countries.  The new 
legislation provided a framework for upgrading catering and tourism serv ices in Croatia.  The war had 
affected the tourist industry significantly, and th e Croatian Tourism Associ ation was implementing a 
promotion programme to regain lost markets.  The Government assisted the re vival of the industry by 
allocating about HRK 30 million (US$4.6 million) in its 1997 budget and HRK 30 million in the 1998 
budget for the promotion of tourism (studies of mark ets overseas, participation in international fairs, 
printing of catalogues, etc,), a nd HRK 45 million (US$6.9 million) in 1997 and HRK 43 million in 1998 
in subsidies to air, road and sea transport to prom ote tourist visits, tour ope rators, travel and tourist 
agencies.  A budget allocation of HRK 70 million for the tourism industry was foreseen for 1999. 
213. Croatia's Schedule of Specific Commitments on Services is annexed to its draft Protocol of 
Accession reproduced in the Appendix to this Report (see paragraph [226] below).  This Schedule of 
Specific Commitments on Services contains the legally binding market access commitments of 
Croatia in respect of services. 
[to be completed] 
Transparency
 
Publication of In formation on Trade 
214. The representative of Croati a stated that the transparency of Croatia's laws and other 
regulations was ensured through obligatory publication of  all laws and regulations  in Croatia's Official 
Gazette "Narodne Novine".  A Law granted that no me asure could be applied be fore being published.  
A Law entered into force eight days after its publi cation in the Official Gazette.  All amendments and 
changes in laws and regulations were also publishe d in Official Gazette to enable all interested 
persons (companies) to get acquainted with th em.  Furthermore, TBT measures including draft 
standards were published in the Office Journal of th e State Office for Standardisation and Metrology 
allowing the public 30 days to provide comments and remarks.  The competent authorities in Croatia 
were drafting a Regulation on methods and procedur es for issuing technical regulations prescribing 
quality and health requirements as a referral point for SPS controls on these item.  He added that the 
Official Gazette "Narodne novine" was av ailable on the internet (www.nn.hr). 
215. The representative of Croatia said that, at the latest from the date of accession, all laws and 
regulations related to trade would be published in the Official G azette "Narodne novine" promptly and 
that no law or regulation relate d to international trade would b ecome effective prior to such 
publication.  He further stated that Croatia w ould implement fully Article X of the GATT 1994 and 
the other transparency requirements in WTO Ag reements requiring notification and publication.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 67 
 
 
Notification 
216. The representative of Croatia said that, at the latest upon entry into force of the Protocol of 
Accession, Croatia would submit all initial notifica tions required by any Agreement constituting part 
of the WTO Agreement.  Any regulations subsequent ly enacted by Croatia which gave effect to the 
laws enacted to implement any Agreement cons tituting part of the WTO Agreement would also 
conform to the requirements of that Agreement, The Working Party took note of this commitment. 
Trade Agreements  
217. The representative of Croatia submitted an  updated list of bilate ral trade and economic 
agreements, and international organizations in which Croatia was participating (circulated in document 
WT/ACC/HRV/6/Rev.1 on 9 October 1996).  The tr ade and economic cooperation agreements were 
based on the principle of most favour ed nation treatment.  He added th at Croatia was fully committed to 
the MFN principle in market access and in other area s covered by the WTO.  His Government intended 
to conclude free-trade agreements with CEFTA c ountries and in due course join the European 
Communities, and would ensure that any such ag reements would meet th e requirements of GATT 
Article XXIV. 
218. Trade preferences for goods originating in Tuni sia, Turkey, Uruguay, Spain, Former Yugoslav 
Republic of Macedonia and Slovenia had been abolis hed at the end of 1993.  At present, the only 
preferential trading agreements in force were a Free Trade Agreement wi th the Former Yugoslav 
Republic of Macedonia, and an FTA with the Republic of Slovenia concluded in 1997.  These FTA's 
were based on the CEFTA model and covered substan tially all trade between Cr oatia, Slovenia and the 
Former Yugoslav Republic of Ma cedonia.  Preferential market access on agricultural products was 
granted through tariff rate quotas.  None of these Agreements covered tr ade in services.  Copies of the 
trade agreements were provided to the Working Party. 
219. The Trieste and Gorizia Ag reement of 1955 included provi sions regulating border trade 
between the municipalities of Buje , Novigrad and Umag in Croatia a nd border areas in Slovenia.  The 
exchange of trade was based on indication lists "A" (exports) and "B" (imports),  and duty-free lists "C" 
(exports) and "D" (imports).  Products impor ted under list "D" (reproduced in document 
WT/ACC/HRV/30, pp,78-80) were duty-free provided they were de signated for usage in the border area 
determined by the Trieste Agreement.  Local export-import trad e could be carried out by a company 
located in the border area and registered with the Court register for such activities. 
220. In response to a request by a member, the re presentative of Croatia confirmed that Croatia 
would notify the Free Trade Agr eement between the Republ ic of Croatia and the Former Yugoslav WT/ACC/SPEC/HRV/7/Rev.2 
Page 68  
 
Republic of Macedonia to the Committee on Regional  Trade Agreements no later than upon Croatia's 
accession to the WTO. 
221. A member noted provisions regarding a 1 per ce nt customs evidence fee in Croatia's Free Trade 
Agreement with the Former Yugoslav Republic of Ma cedonia, and questioned the consistency of such a 
fee with Articles XXIV and VIII of the GATT.  The representative of Croatia replied that Croatia applied 1 per cent customs duty on imports from th e Former Yugoslav Republ ic of Macedonia, while 
the latter applied a 1 per cent cust oms evidence fee on Croatian export s.  Croatia recognized that such 
provisions in its Free Trade Agreement with the Fo rmer Yugoslav Republic of  Macedonia were not in 
compliance with Article XXIV of the GATT.  The authorities of Croatia and the Former Yugoslav 
Republic of Macedonia had accordi ngly agreed that Croatia would eliminate the 1 per cent customs 
duty, thereby applying zero duty in accordance with the Free Trade Agreement, at the latest by the date 
of accession, and the Former Yugoslav Republic of  Macedonia would eliminate the 1 per cent customs 
evidence fee as from 1 January 2000.  [The proposal  on amendments to the Croatia-FYROM Free Trade 
Agreement is currently in legislative procedure.] 
222. A member requested Croatia to report on th e specific steps taken to date to pursue a 
WTO-consistent FTA with Bosnia a nd Herzegovina.  In reply, the representative of Croatia said that 
the Agreement on Economic Cooperation between the Government of the Republic of Croatia and the 
Governments of the Republic a nd Federation of Bosnia and Her zegovina had been negotiated and 
signed in 1995.  At that time, Bosnia and Her zegovina was not organized under the Dayton Peace 
Agreement provisions, thus there were two customs territories in Bosnia and Herzegovina (Federation 
and Republic Srpska).  Having in mind the special  relations envisaged between the Republic of 
Croatia and the Federation of Bosnia and Herzeg ovina in the Washington Agreement, Croatia's 
Government had opted for a Free Trade Agreement w ith the federal customs territory in Bosnia and 
Herzegovina.  New political developments aris ing from the Dayton Peace Agreement signed in 
December 1995, which also introduced a single cust oms territory of Bosnia and Herzegovina with two 
customs administrations, had underscored the necess ity of changing the scope of the Agreement on 
Economic Cooperation.  Therefore, Croatia's G overnment had passed a decision in May 1998 to 
negotiate a draft Trade Agreement with the Co uncil of Ministers of Bosnia and Herzegovina, 
introducing a free trade arrangement with the whol e territory of Bosnia and Herzegovina.  The 
negotiations had been delayed due to the preparat ion of elections in Bosnia and Herzegovina in 
September 1998.  The draft new Free Trade Agreem ent proposed by Croatia envisaged completely 
free trade in industrial goods (without a 1 per cent cu stoms fee) and exchange of concessions in trade 
in agricultural goods, thus bringing the provisions of that Agreement in line with WTO rules and 
disciplines.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 69 
 
 
223. Negotiations between the Government of Croatia  and the Council of Ministers of Bosnia and 
Herzegovina on concluding a Free  Trade Agreement, covering subs tantially all trade in products 
originating in the Republic of Croatia and the w hole territory of Bosnia and Herzegovina, had begun 
in March 1999.  The Agreement on Economic Coope ration between the Republic of Croatia and the 
Federation of Bosnia and Herze govina had been abolished on 15 Ma y 1999, thus reintroducing MFN 
based trade between Croatia and the whole territory of Bosnia and Herzegovina.  This regime would 
remain in place until the conclusion of a Free Tr ade Agreement between Croatia and Bosnia and 
Herzegovina as a whole.  The Government of Cr oatia expected the new FTA to be signed and 
implemented prior to Croatia’s accession to the WTO. 
224. The representative of Croatia stated that his Government would observe the provisions of the 
WTO including Article XXIV of the GATT 1994 and Ar ticle V of the GATS in its trade agreements, 
and would ensure that the provisions of these WT O Agreements for notification, consultation and 
other requirements concerning free trade areas and customs unions of which Croatia was a member 
were met from the date of accession.  The Working Party took note of these commitments. 
Conclusions  
225. The Working Party took note of the explanatio ns and statements of Croatia concerning its 
foreign trade regime, as reflected in this report.  The Working Part y took note of the commitments given 
by Croatia in relation to certain sp ecific matters whic h are reproduced in paragraphs 26, 33, [37], 41, 47, 
58, 64, 73, 83, 88, 99, 101, 105, 108, 111, 122, 135,  137, 146, 148, 156, 160, 169, 203, 216 and 224 in 
this Report.  The Working Party took note that these commitments had been inco rporated in paragraph 2 
of the Protocol of Accession of Croatia to the WTO. 
226. Having carried out the examination of the foreign trade regime of Croatia and in the light of the 
explanations, commitments and con cessions made by the representative of Croatia, the Working Party 
reached the conclusion that Croatia should be invited to accede to the Marrakesh Agreement 
Establishing the WTO pursuant to the provisions of Ar ticle XII.  For this purpose the Working Party has 
prepared the Draft Decision and Protocol of Access ion reproduced in the Appendix to this report, and 
takes note of Croatia's Schedule of Specific Co mmitments on Services ( document WT/ACC/HRV/….) 
and its Schedules of Concessions and Comm itments on Agriculture and Goods (document 
WT/ACC/HRV/….) that are attached to the Protocol of  Accession.  It is proposed that these texts be 
approved by the General Council when it adopts the Re port.  When the Decision is adopted, the Protocol 
of Accession would be ope n for acceptance by Croatia  which would become a Member thirty days after 
it accepts the said Protocol.  The Working Party ag reed, therefore, that it had completed its work 
concerning the negotiations for the accession of Cr oatia to the Marrakesh Agreement Establishing the 
WTO. WT/ACC/SPEC/HRV/7/Rev.2 
Page 70  
 
APPENDIX 
ACCESSION OF CROATIA
 
Draft Decision  
The General Council,  Having regard
 to the results of the negotiations direct ed towards the establishment of the terms 
of accession of the Republic of Croatia to the Marrakesh Agreement Esta blishing the World Trade 
Organization and having prepared a Prot ocol for the Accession of Croatia, 
 Decides , in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic  of Croatia may accede to the Marrakesh Agreemen t Establishing 
the World Trade Organization on the te rms set out in the said Protocol.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 71 
 
 
PROTOCOL OF ACCESSION OF CROATIA 
TO THE MARRAKESH AGREEMENT ESTABLISHING 
THE WORLD TRADE ORGANIZATION 
DRAFT 
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereinafter referred to as "WTO Agreement"), and the 
Republic of Croatia (hereinafter referred to as "Croatia"), 
 Taking note  of the Report of the Working Party on the Accession of Croatia to the WTO in 
document WT/ACC/HRV/…. (hereinafter referred to as the "Working Party Report"), 
 Having regard  to the results of the negotiations on the accession of Croatia to the WTO, 
 Agree  as follows: 
Part I – General 1. Upon entry into force of this Protocol, Cr oatia accedes to the WTO Agreement pursuant to 
Article XII of that Agreement and thereby becomes a Member of the WTO. 
2. The WTO Agreement to which Croatia accedes shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal instrume nts as may have entered into force before the date 
of entry into force of this Protocol.  This Protoc ol, which shall include the commitments referred to in 
paragraph [225] of the Working Party Report, sha ll be an integral part of the WTO Agreement. 
3. Except as otherwise provided for in the pa ragraphs referred to in paragraph [225] of the 
Working Party Report, those obligations in the Mu ltilateral Trade Agreements annexed to the WTO 
Agreement that are to be implemente d over a period of time starting with the entry into force of that 
Agreement shall be implemented by Croatia as if it had accepted that Agreement on the date of its entry 
into force. 
4. Croatia may maintain a measure inconsistent  with paragraph 1 of Article II of the GATS 
provided that such a measure is recorded in the list of  Article II Exemptions annexed to this Protocol and 
meets the conditions of the Annex to the GATS on Article II Exemptions. WT/ACC/SPEC/HRV/7/Rev.2 
Page 72  
 
Part II – Schedules. 
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and 
Commitments annexed to the Genera l Agreement on Tariffs and Trade 1994 (hereinafter referred to as 
the "GATT 1994") and the Schedule of Specific Co mmitments annexed to th e General Agreement on 
Trade in Services (hereinafter referred to as "GATS") relating to Croatia.  The staging of concessions and commitments listed in the Schedules shall be implemented as specified in the relevant parts of the 
respective Schedules. 
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Con cessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
Part III - Final Provisions 
7. This Protocol shall be open for acceptance, by  signature or otherwise, by Croatia until […..]. 
8. This Protocol shall enter into force on th e thirtieth day following the day of its acceptance. 
9. This Protocol shall be deposited with the Dire ctor-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance 
thereto pursuant to paragraph 7 to each member of the WTO and Croatia. 
10. This Protocol shall be regist ered in accordance with  the provisions of Article 102 of the Charter 
of the United Nations. 
11. Done at Geneva this … day of  … one thousa nd nine hundred and ninety … in a single copy in 
the English, French and Spanish languages each text being authentic, except that a Schedule annexed 
hereto may specify that it is authentic in  only one or more of these languages.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 73 
 
 
ANNEX 1 
Laws, regulations and other information provided to the Working Party by Croatia  
- The Law on the Foreign Exchange System, Foreign Exchange Operations and Gold 
Transactions; 
- Transformation of Socially-Owned Enterprises Act; 
- The Privatization Act of 1 March 1996; - Annual Report of the Croatian  Privatization Fund for 1994; 
- Financial Statements of the Croati an Privatization Fund for 1993 and 1994; 
- Privatization in the Republic of Croatia; 
- Results of Voucher Privatization in Croatia; 
- List of Public Enterprises; - Electric Power Supply Act with Explan ations and Restructuring Programme; 
- Restructuring Programme and th e new Croatian Railways Act; 
- Law on Exceptional Measures of Price Control; 
- Decision Promulgating the Law on Exceptional Me asures of Price Controls of 8 July 1997; 
- Decision on the Compulsory Reporting of Price Lists and Tariffs of Certain Legal Persons; 
- Order on Identifying Products Requiring Reporti ng of Prices and Margins for the Purpose of 
Control; 
- Decision on Compulsory Reporting of the Pri ce Lists or Tariffs of Certain Products and 
Services; 
- Order on Identifying the Products and Services  Requiring the Reporting of Price Lists of 
Tariffs; 
- List of Products and Services which are s ubject to the Obliged Notification of Prices; 
- The Croatian Competition Protection Act; - The Croatian Company Law; 
- Law on Trade; 
- Law Amending the Law on Trade (adopted on 30 June 1999); - The Croatian Customs Law; - Customs Law (adopted on 30 June 1999); - The Croatian Customs Service Act; - Diskette containing the new customs tariff (in force as from 1 July 1996); 
- Decree on the Criteria for Tariff Quota; 
- Decree Amending the Law on Administrative Taxes; - Decree of 24 June 1999 Amending the Administrative Taxes Amounts of the Law on 
Administrative Taxes (equalizing administra tive fees on import and export of waste); 
- Tax System of the Republic of Croatia:  Profit Tax Act, Income  Tax Act and VAT Act; 
- Law on Excise Tax on Oil Derivatives; 
- Law on Excise Tax on Beer; - Law on Excise Taxes on Automobiles, Ot her Motor Vehicles, Vessels and Aircraft; 
- Law on Excise Tax on No n Alcoholic Beverages; 
- Law on Excise Tax on Coffee; - Law on Excise Taxes on Spirits; 
- Law on Excise Tax on Spirits; 
- Law amending the Law on Special Taxes on Tobacco Products (ado pted on 18 June 1999); 
- Export/Import Quotas for the Years 1991, 1992 and 1993; - Export/Import Quotas  for the Year 1995; 
- Export/Import Quotas for 1996; 
- List of Goods Imported and Expor ted on the Basis of 1995 Licences; 
- Export/Import Licences in 1996; - Decision Amending the Decision Determining th e Goods Imported and Exported on Basis of 
Licences; WT/ACC/SPEC/HRV/7/Rev.2 
Page 74  
 
- Decision Amending the Decision Determining the Goods Imported and Exported on the Basis 
of Licences; 
- Extract of the Draft Customs Law relate d to the issue of Customs Valuation; 
- Statute of the Republic of Croatia on the Cond itions and Method of Determining Tariff Bases; 
- Customs Regulations for Determining the Cust oms Value According to the Customs Law of 
the Republic of Croatia (Articles 29 to 48); 
- Law on Waste; - Law on Environmental Protection; - Decree on Rules of Origin and Procedure fo r Issue of Certificate of Origin (as of 
24 June 1999); 
- Attachment to the Decree on Rules of Origin; 
- Certificate of Origin; - Decision on Determining the Goods Expo rted on Basis of Quota of 12 July 1996; 
- Decision on Termination of the Decision on Determining the Goods Exported on Basis of 
Quota; 
- Decision on Termination of the Decision on De termining the Goods Exported on the Basis of 
Quota; 
- Subsidies and Supports from State Budget Gran ted in the Republic of Croatia in 1997 and 1998; 
- War Damage to the Agricultural Se ctor of the Republic of Croatia; 
- Basic Data on the Fishing Sect or of the Republic of Croatia; 
- Government Decision on Establishi ng the TBT and SPS Enquiry Point; 
- The Standardization Act of 2 July 1996; 
- Standardization Act; - State Office for Standardization and Metrology:  Rules for Preparation, Adopting and Issuing of 
Croatian Standards; 
- List of Croatian Standards; 
- Law on State Inspectorate (adopted on 30 June 1999); 
- Extract of the draft Law on State Inspectorat es in Economy and Labour Area Related to the 
Quality Control System; 
- Products Subject to Quality Control on Imports (HS Numbers); - Decision on Amounts to be Paid for Covering the Costs of Quality Control of Products Upon 
Export and Import; 
- Decision on Amounts to be Paid for Covering the Costs of Quality Control of Products Upon 
Export and Import of 23 May 1995; 
- Regulation on the Procedure for the Adopti on of Regulations on Basic Requirements for 
Goods, Processes and Services; 
- Regulation Amending the Regulation on Standard Quality of Liquid Fuels (as of 
24 June 1999); 
- Law Concerning the Healthiness and Health Co ntrol of Foodstuffs and General Use Articles; 
- Law concerning the Healthiness and Health Cont rol of Foodstuffs and General Use Articles 
(1996); 
- Drugs and Medical Products Law; - Plant Protection Act; 
- Phytosanitary Certificate; 
- Regulation on Phytosanitary Insp ection of Plants and Control of Plant Protection Products in the 
National Cross-Boundary Transportation; 
- Regulation on Phytosanitary Inspection of Plants  and Control of Plant Protection Products in 
National Cross-Boundary Transportati on (to be revised by 1 June); 
- Draft Regulation on the Amendments of the Regulation on Phytosanitary Inspection of Plants 
and Control of Plant – Protection Products in the National Cross – Boundary Transportation; 
- List of Quarantine Plant Pests; - Norms for the Establishment of Health Conditions of Crops, Nurseries, Seed and Planting 
Material; 
- Law on State Commodity Reserves; 
- The Croatian Free Zones Act;  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 75 
 
 
- Decree on Procurement of Goods, Works and Services; 
- Law on Procurement of Go ods, Services and Works; 
- Agricultural Strategy of the Republic of Croatia; - List of Protection Measures on Agricultural and Food Products; 
- Import Prices for Agricultural Products in 1997; 
- Tobacco Law; 
- Agreement on Trade-related Aspect s of Intellectual Property Rights; 
- Copyright Law (unofficial consolidated integral version); - Law on the Amendments of the Copyright Law (adopted on 30 June 1999); - Trademark Law (adopted on 30 June 1999); 
- Patent Law (adopted on 30 June 1999); 
- Industrial Design Law (adopted on 30 June 1999); - Law on the Protection of Layout-Designs on Inte grated Circuits (adopted on 30 June 1999); 
- Law on the Protection of Geographical Indica tions of Products and Services (adopted on 
30 June 1999); 
- The Croatian Banking Act; 
- Law Amending the Law on Banks and Savi ngs Banks (Official Gazette No.89 of 
30 June 1998); 
- Credit Relations with Foreign Countries Act; 
- Insurance Law; - Law on Insurance and Sale of Securities of 1 January 1996; 
- Decision Promulgating the Law on I nvestment Funds of 14 December 1995; 
- Law on Telecommunications; - The Agreement on the Economic Co-operation between the Government of the Republic of 
Croatia and the Government of the Republic and Federation of Bosnia and Herzegovina; 
- Free Trade Agreement between the Republic of Croatia and th e Former Yugoslav Republic of 
Macedonia; 
- Free Trade Agreement between the Republic of Croatia and the Republic of Slovenia; - Reasons for requesting developi ng country treatment for the Repu blic of Croatia within the 
WTO; 
- Tender Documentation for the Purchase of Joint Stock Companies; - World Bank Project Portfolio in Croatia; 
- List of IBRD, EBRD and CEF Project Loans;  and 
- Imports to Croatia 1998.  
 [to be completed] WT/ACC/SPEC/HRV/7/Rev.2 
Page 76  
 
Table 5
 
Products Subject to Import Licensing1 
HS code Produce description Licensing authority 
26.12  Uranium or thorium ores and concentrates  
 2612.10 Uranium ores and concentrates  
 2612.20 Thorium ores and concentrates  
28.44  Radioactive chemical elements and radioactive 
isotopes (including the fiss ile or fertile chemical 
elements and isotopes) and their compounds;  
mixture and residues containing those products:  
 2844.10 - Natural uranium and its compounds:  alloys, 
dispersions (including  cermets), ceramic 
products and mixtures c ontaining these products  
 2844.20 - Uranium enriched in U 235 and its compounds;  
plutonium and its compounds;  alloys, 
dispersions (including  cermets), ceramic 
products and mixtures containing uranium enriched U 235, plutonium or compounds of these products  
 2844.30 - Uranium depleted in  U 235 and its compounds; 
alloys, dispersions (inc luding cermets), ceramic 
products and mixtures containing uranium depleted in U 235, thor ium or compounds of 
these products  
 
Ministry of Economy 
 2844.40 Radioactive elements and isotopes and 
compounds other than those of subheading No. 
2844.10, 2844.20 or 2844.30; alloys, dispersions ( including cermets ), ceramic products and mixtures containing these elements, isotopes or compounds; radioactive residues  
 2844.50 - Spent (irradiated) fuel  elements (cartridges) of 
nuclear reactors  
28.45  Isotopes other than those of heading No.2844;  
compounds, inorganic or organic, of such isotopes, whether or not  chemically defined  
 2845.10 - Heavy water (deuterium oxide)  
 2845.90 - Other  
 2845.901 - Deuterium  
29.04  Sulphonated, nitrated or  nitrated derivatives of 
hydrocarbons, whether or not halogenated  
 2904.201 - Nitrobenzene  
 2904.202 - Dinitrobenzene  
 2904.203 - Di and trinitrotoluene  
29.20  Esters of other inorga nic acids (excluding esters 
of hydrogen halide) and their salts;  their halogenated, sulphonated, nitrated or nitrosalted 
derivatives:  
                                                      
1 In addition, Croatia applies licensing to narcotics and substances damaging the ozone layer  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 77 
 
 
HS code Produce description Licensing authority 
 2920.90 - Other:  
 2920.9003 - Nitroglycerin  
 2920.9004 - Other esters of nitrate acid  
 2920.9006 - Salts from other acids  
30.01  Glands and other orga ns for organo-therapeutic 
uses, dried, whether or not powdered;  extracts 
of glands or other organs or of their secretions 
for organo-therapeutic uses;  heparin and its salts;  other human or animal substances prepared for ther apeutic or prophylactic uses, not 
elsewhere specified or included  
 
 
 
 3001.10 - Glands and other orga ns, dried, whether or not 
powdered  
 3001.90 - Other  
 3001.909 - Other  
30.02  Human blood;  animal blood prepared for 
therapeutic, prophylactic or diagnostic uses;  
antisera and other blood fractions and modified 
immunological products, whether or not obtained by means of biotechnological processes; vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar 
products  
 3002.10 - Antisera and other blood fractions and 
modified immunological products, whether or 
not obtained by means of biotechnological 
processes Ministry of Health or 
Ministry of Agriculture and 
Forestry 
 
 3002.20 - Vaccines for human medicine  
 3002.30 - Vaccines for veterinary medicine  
 3002.90 - Other  
 3002.909 - Other  
30.03  Medicaments (excluding goods of heading 
No.3002, 3005 or 3006) consisting of two or 
more constituents which have been mixed 
together for therapeutic or prophylactic uses, not 
put up in measured doses or  in forms or packings 
for retail sale:  
 3003.10 - Containing penicillin  or derivatives thereof, 
with a penicillanic acid structure, or streptomycin or their derivatives  
 3003.20 - Containing other antibiotics  
 3003.201 - Containing rolitetracyclin  
 3003.209 - Other  
 3003.30 - Containing hormones or other products of 
heading No.2937 but not containing antibiotics  
 3003.31 - Containing insulin  
 3003.39 - Other  
 3003.40 - Containing alkaloids or derivatives thereof but 
not containing hormones or other products of heading No.2937 or antibiotics  
 3003.90 - Other  
 3003.901 Polimaltic complex w ith iron (III) hydroxide  WT/ACC/SPEC/HRV/7/Rev.2 
Page 78  
 
HS code Produce description Licensing authority 
 3003.902 - Saccharine complex with iron (III) hydroxide  
 3003.909 - Other 
30.04  Medicaments (excluding goods of heading 
No.3002, 3005 or 3006) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses or in forms or 
packings for retail sale:  
 3004.10 - Containing penicillin  or derivatives thereof, 
with a penicillanic acid structure, or 
streptomycin or their derivatives:  
 3004.101 - Ready made medicaments for retail sale  
 3004.109 - Medicaments in doses in bulk  
 3004.20 - Containing other antibiotics  
 3004.201 - Ready made medicaments for retail sale  
 3004.209 - Medicaments in doses in bulk  
 3004.3 - Containing hormones or other products of 
heading No.2937 but not containing antibiotics  
 3004.31 - Containing insulin  
 3004.301 - Ready made medicaments for retail sale  
 3004.319 - Medicaments in doses in bulk  
 3004.32 - Containing adrenal cortical hormones  
 3004.321 - Ready made medicaments for retail sale  
 3004.329 - Medicaments in doses in bulk  
 3004.39 - Other  
 3004.391 - Ready made medicaments for re tail sale Ministry of Health or 
Ministry of Agriculture and 
Forestry 
 3004.399 - Medicaments in doses in bulk  
 3004.40 - Containing alkaloids or derivatives thereof but 
not containing hormones,  other products of 
heading No.2937 or antibiotics  
 3004.401 - Ready made medicaments for retail use  
 3004.402 - Oncovin doses in bulk  
 3004.409 - Other medicaments in doses in bulk  
 3004.50 - Other medicaments containing vitamins or 
other products of heading No.2936  
 3004.501 - Ready made medicaments for retail sale  
 3004.509 - medicaments in doses in bulk  
 3004.90 - Other  
 3004.902 - Other medicaments for retail sale  
 3004.903 - Medicaments in doses in bulk  
 3004.909 - Other  
30.06  Pharmaceutical goods specified in note 4 to this 
chapter  
 3006.20 - Blood grouping reagents  
 3006.30 - Opacifying preparations for x-ray 
examinations; diagnostic reagents designed to be administered to the patient  
 3006.60 - Chemical contraceptive preparations based on 
hormones or spermicides  
36.01 3601.00 Propellant powders   WT/ACC/SPEC/HRV/7/Rev.2 
 Page 79 
 
 
HS code Produce description Licensing authority 
 3601.001 - Propellant powders with no smoke  
 3601.002 - Black propellant powder for hunters 
 3601.003 - Black propellant powder for miners  
 3601.009 - Other Black propellant powder  
36.02 3602.00 Prepared explosive, other than propellant 
powders  
 3602.001 - On the basis of ammonium nitrate  
 3602.002 - On the basis of chlorate and perchlorate  
 3602.003 - On the basis of nitroglycerine  
 3602.004 - On the basis of nitrate esters  
 3602.009 - Others  
36.03 3603.00 Safety fuses; detonating fuses; percussion or 
detonating caps; igniters;  electric detonators:  
 3603.001 - Detonating fuses  
 3603.002 - Safety fuses  
 3603.003 - Caps  
 3603.004 - Igniters  
 3603.009 -Detonators  
36.04  Fireworks, signalling flares, rain rockets, fog 
signals and other pyrotechnic articles  
 3604.90 - Other  
 3604.901 - Rain rockets 
38.01  Artificial graphite; colloidal or semi-colloidal 
graphite; preparations based on graphite or other carbon in the form of pastes, plates or other 
semi-manufactures 
 3801.10 - Artificial graphite 
 3801.101 -Of nuclear grade 
48.08  Paper and paperboard, corrugated (with or 
without glued flat surf ace sheets), creped, 
crinkled, embossed or perforated, in rolls or 
sheets, other than paper of the kind described in 
heading No.48,03  
 
 
   
Ministry of Economy 
 4808.10 - Corrugated paper and paperboard, whether or 
not perforated  
48.19  Cartons, boxes, cases, bags and other packing 
containers, of paper, paperboard, cellulose 
wadding or webs of cellulose fibres;  box files, letter trays, and simila r articles, of paper or 
paperboard of a kind used in offices, shops or the like  
 4819.10 - Cartons, boxes and cases, of corrugated paper 
or paperboard  
49.07 4907.00 Unused postage, reve nue or similar stamps of 
current or new issue in the country to which they are destined;  stamp-impressed paper;  banknotes;  cheque forms;  stock;  share or bond 
certificates and similar documents of title:  
 4907.002 - Securities (stocks, cheque forms, etc,)  
 4907.003 - Banknotes which are not legal tender in any 
country  WT/ACC/SPEC/HRV/7/Rev.2 
Page 80  
 
HS code Produce description Licensing authority 
 4907.009 - Other  
 
68.15  Articles of stone or of other mineral substances 
(including carbon fibres, arti cles of carbon fibres 
and articles of peat) not elsewhere specified or 
included.  
 6815.10 - Non –electrical articl es of graphite or other 
carbon  
 6815.101 - Of nuclear grade graphite  
70.17  Laboratory, hygienic or pharmaceutical 
glassware, whether or not graduated or calibrated  
 
 7017.10 - Of fused quartz or other fused silica 
 7017.20 - Of other glass havi ng a linear coefficient of 
expansion not exceeding 5x10 -6 per Kelvin 
within a temperature range of 0 c to 300 c State Bureau of Standards 
and Measurements 
 7017.90 - Other  
71.08  Gold (including gold plated with platinum) 
unwrought or in semi-manuf actured forms, or in 
powder form:  
 7108.1 - Non-monetary  
 7108.11 --- Powder Ministry of Economy 
 7108.12 --- Unwrought  
 7108.13 -- Semi-manufactured  
 7108.20 - Monetary  
71.18  Coin  
 7118.10 - Coins (other than gold coin), not being legal 
tender   
 7118.90 - Other  
73.10  Tanks, casks, drums, cans, boxes and similar 
containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not 
lined or heat-insulated, but not fitted with 
mechanical or thermal equipment.   
  
State Bureau of Standards 
and Measurements 
 7310.10 - Of a capacity of 50 l or more  
 7310.2 - Of a capacity of less than 50 l :  
 7310.29 - Other  
84.01  Nuclear reactors;  fuel elements (cartridges), 
non-irradiated, for nuclear reactors, machinery and apparatus for isotopic separation:  
 8401.10 - Nuclear reactors  
 8401.20 Machinery and apparatus for isotopic separation, 
and their parts  Ministry of Economy 
 8401.30 - Fuel elements (car tridges), non-irradiated  
 8401.40 - Parts of nuclear reactor  
84.13  Pumps for liquids, whether or not fitted with a 
measuring device;  liquid elevators  
 8413.1 - Pumps fitted or designed to be fitted with a 
measuring device  
 8413.11 -- Pumps for dispersing fuel or lubricants, of the 
type used in filling-stations or in garages   WT/ACC/SPEC/HRV/7/Rev.2 
 Page 81 
 
 
HS code Produce description Licensing authority 
84.23  Weighing machinery (excluding balances of a 
sensitivity of 5cg or be tter) including weight 
operated counting or checking machines; weighing machine weights of all kinds  
 8423.10 - Personal weighing machines, including baby 
scales;  household scales  
 8423.20 - Scales for continuous weighing of goods on 
conveyors  
 8423.30 - Constant weight scales and scales for 
discharging a predetermine d weight of material 
into a bag or container, including hopper scale  
 8423.8 - Other State Bureau of Standards 
and Measurements 
 8423.81 -- Having a maximum weighing capacity not 
exceeding 30kg,  
 8423.82 -- Having a maximum weighing capacity 
exceeding 30kg but not exceeding 5,000kg  
 8423.89 -- Other  
 8423.891 --- Weighbridge (railway and road)  
 8423.899 --- Other  
 8423.90 - Weighing machine weights of all kinds;  parts 
of weighing machinery  
 8423.901 --- Weight  
85.25  Transmission apparatus for radio-telephony, 
radio-telegraphy, ra dio-broadcasting or 
television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus;  television cameras; still 
image video cameras and other video camera 
recorders:  
 8525.10 - Transmission apparatus  
 8525.101 - Radio transmission  
 8525.109 -- Other  
 8525.20 - Transmission apparatus incorporating reception 
apparatus Ministry of Economy 
 8525.201 - Repeater for radio  
 8525.209 -- Other  
85.26  Radio apparatus, radio navigational aid 
apparatus and radio remote control apparatus  
 8526.10 - Radar apparatus  
 8526.91 - Radio navigational apparatus  
 8526.92 - Radio remote control apparatus  
87.01  Tractors (other than tractors of heading 
No.8709)  
 8701.90 - Other  
 8701.9021 ---- Over 5 years old  
87.10 8710.00 Tanks and other ar moured fighting vehicles, 
motorised, whether or not  fitted with weapons 
and parts of such vehicles Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
89.06 8906.00 Other vessels, incl uding warships and lifeboats 
other than rowing boats:  
 8906.001 --- Warships of all sorts  WT/ACC/SPEC/HRV/7/Rev.2 
Page 82  
 
HS code Produce description Licensing authority 
90.15  Surveying (including photogrammetrical 
surveying), hydrographic, oceanographic, 
hydrological, meteorological or geophysical instruments and appliances, excluding compasses;  rangefinders  
 9015.10 - Rangefinders  
 9015.20 - Theodolites and tacheometers  
 9015.30 - Levels  
90.16  Balances of a sensivity of 5 cg or better, with or 
without wights  
90.18  Instruments and applia nces used in medical, 
surgical, dental or veterinary sciences, including scintigraphic apparatus, other electromedical apparatus and sight testing instruments  
 9018.3 - Syringes, needles, catheters, ca nnulae and the 
like  
 9018.31 - Syringes, with or without needles  
 9018.90 - Other apparatus and instruments  
 9018.901 --- Apparatus for dialysis  
90.25  Hydrometers, and simi lar floating instruments, 
thermometers, pyrometers, barometers, hygrometers and psychrom eters, recording or 
not, and any combination of these instruments  
 9025.1 - Thermometers and pyrometers, not combined 
with other instruments  
 9025.11 -- Liquid-filled or direct reading  
 9025.19 -- Other State Bureau of Standards 
and Measurements 
 90.26  Instruments and apparatus for measuring or 
checking the flow, level, pressure or other variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), excluding instruments and apparatus of heading 
Nos,9014, 9015, 9028 or 9032:  
 9026.10 - For measuring or checking the flow or level of 
liquids:  
 9026.101 --- Electronic  
 9026.102 --- Electric 
 9026.109 --- Other  
 9026.20 - For measuring or checking pressure:  
 9026.201 --- Electronic  
 9026.202 --- Electric  
 9026.203 --- Manometers (non-el ectronic, non-electric)  
 9026.209 --- Other  
 9026.80 - Other instruments or apparatus:  
 9026.801 --- Electronic  
 9026.802 --- Electric  
 9026.803 --- Flow meters of gases (non-electronic and 
non-electric)  
 9026.809 -- Other   WT/ACC/SPEC/HRV/7/Rev.2 
 Page 83 
 
 
HS code Produce description Licensing authority 
90.27  Instruments and apparatus for physical or 
chemical analysis (for example, polarimeters, 
refactometers, spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like;  
instruments and apparatus for measuring or 
checking quantities of hear, sound or light (including exposure meters); microtomes:  
 9027.10 - Gas and smoke analysis apparatus:  
 9027.101 --- Electronic  
. 9027.102 --- Electrical  
 9027.109 --- Other  
 9027.80 --- Other instruments and apparatus:  
 9027.801 ---Electronic  
 9027.802 ---Electrical  
 9027.809 --- Other  
90.28  Gas, liquid or electricity supply or production 
meters, including calibrating meters therefore:  
 9028.10 - Gas meters  
 9028.20 - Liquid meters  
 9028.201 --- For fuel  
 9028.202 --- Water meters  
 9028.209 --- Other  
 9028.30 - Electricity meters  
90.29  Revolution counter s, production counters, 
taximeters, mileometers,  pedometers and the 
like;  speed indicators and tachometers, other 
than those of heading Nos, 9014 or 9015; 
stroboscopes State Bureau of Standards 
and Measurements 
 9029.10 - Revolution counter s, production counters, 
taximeters, mileometers,  pedometers and the 
like:  
 9029.101 --- Electronic  
 9029.102 --- Electric  
 9029.109 --- Other  
 9029.20 Speed indicators and tachometers; str oboscopes
 9029.201 --- Electronic 
 9029.202 --- Electric 
 9029.209 --- Other 
90.30  Oscilloscopes, spectrum analyzers and other 
instruments and apparatus for measuring or 
checking electrical quantities, excluding meters of heading No.9028; instruments and apparatus for measuring or detecti ng alpha, beta gamma, x-
ray, cosmic or other ionising radiations: 
 9030.10 - Instruments and apparatus for measuring or 
detecting ionising radiations;  WT/ACC/SPEC/HRV/7/Rev.2 
Page 84  
 
HS code Produce description Licensing authority 
91.06  Time of day recordin g apparatus and apparatus 
for measuring, recording or otherwise indicating 
intervals of time, with clock or watches movement or with synchronous motor (for example, time-registers, time-recorders):  
 9106.20 - Parking meters  
93.01 9301.00 Military weapons, othe r than revolvers, pistols 
and the arms of heading No.9307 
93.02 9302.00 Revolvers and pistol s, other than those of 
heading No.9303 or 9304  
93.03  Other firearms a nd similar devices which 
operate by firing of an explosive charge (for 
example, sporting shotguns and rifles, muzzle-
loading firearms, very pi stols and other devices 
designed to project only signal flares, pistols and 
revolvers for firing bla nk ammunition, captive-
bolt humane killers, line-throwing guns):  
 9303.10 - Muzzle-loading firearms  
 9303.20 - Other sporting, hunting or target-shooting 
shotguns, including combination shotgun-rifles:  
 9303.30 - Other sporting hunting or target-shooting rifles  
 9303.90 - Other  
 9303.901 --- Starting rifles  
 9303.909 --- Other  
93.04 9304.00 Other arms (for example, spring, air or gas guns 
and pistols, truncheons ), excluding those of 
heading No.9307 Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
 9304.001 --- Shotguns for spear-fishing  
 9304.009 --- Other  
93.05  Parts and accessories of articles of heading 
Nos,9302 to 9304  
 9305.10 -- Of revolvers or pistols  
 9305.101 --- Shotguns for spear-fishing  
 9305.109 --- Other  
 9305.2 - For rifled barrels,  hunting and sporting rifles 
from heading No.9303  
 9305.21 --- Tubes for rifle barrels  
 9305.29 -- Other  
 9305.90 - Other  
 9305.901 --- Products from heading No. 9301  
 9305.909 --- Other  
93.06  Bombs, grenades, torp edoes, mines, missiles and 
similar munitions of wa r and parts thereof;  
cartridges and other amm unition and projectiles 
and parts thereof, includi ng shot and cartridge 
wads:  
 9306.10 - Cartridges for riveti ng or similar tools or for 
captive-bolt humane killers and parts thereof  
 9306.2 - Cartridges for rifled  barrels and their parts; 
cartridges for air guns  
 9306.21 --- Patrons  
 9306.29 -- Other   WT/ACC/SPEC/HRV/7/Rev.2 
 Page 85 
 
 
HS code Produce description Licensing authority 
 9306.30 - Other cartridges and parts thereof  
 9306.90 - Other  
93.07 9307.00 Swords, cutlasses, ba yonets, lances and similar 
arms and parts thereof and scabbards and sheaths thereof  
 WT/ACC/SPEC/HRV/7/Rev.2 
Page 86  
 
Table 6
 
Products Subject to Export Licences2 
HS code Product description Licensing authority 
28.44  Radioactive chemical  element and radioactive 
isotopes (including the fiss ile or fertile chemical 
elements and isotopes) and other compounds;  
mixtures and residues containing those products:  
 2844.10 - Natural uranium and its compounds:  alloys, 
dispersions (including ce rmets), ceramic products 
and mixture containing natural uranium or 
natural uranium compounds;  
 2844.20 - Uranium enriched in U 235 and its compound;  
plutonium and its compounds;  alloys, 
dispersions (including ce rmets), ceramic products 
and mixtures containing uranium enriched U 235, plutonium or compounds of these products;  
 2844.30 - Uranium depleted in  U 235 and its compounds, 
thorium and its compounds;  alloys, dispersions (including cermets) ceramic products and mixtures containing uranium depleted in U 235, 
thorium or compounds of these products  
 2844.50 - Spent (irradiated) fuel  elements (cartridges) of 
nuclear reactor  
28.45  Isotopes other than those of heading No.2844;  
compounds, inorganic or organic, of such 
isotopes, whether or not  chemically defined Ministry of Economy 
 2845.10 - Heavy water (deuterium oxide)  
29.04  Sulphonated, nitrated or  nitrated derivatives of 
hydrocarbons, whether or not halogenated  
 2904.201 --- Nitrobenzene  
 2904.202 --- Dinitrobenzene  
 2904.203 --- Di and trinitrotoluene  
2920  Esters of other inorga nic acids (excluding esters 
of hydrogen halide) and their salts;  their halogenated, sulphonated, nitrated or nitrosalted 
derivatives:  
 2920.90 Other:  
 2920.9003 Nitroglycerin  
 2920.9004 Other esters of ,,,, acids  
    
49.07 4907.00 Unused postage, revenue or similar stamps of 
current or new issue in the country to which they are destined;  stamp-impr essed paper;  banknotes;  
cheque forms;  stock;  share or bond certificates 
and similar documents of title:  
. 
 4907.002 --- Securities (actions , cheque books, etc,)  
 4907.003 --- Banknotes which are not legal means of 
payment in any of the countries  
                                                      
2 In addition, Croatia applies licensing to narcotics and substances damaging the ozone layer  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 87 
 
 
HS code Product description Licensing authority 
 4907.009 --- Other  
71.08  Gold including gold plated with platinum 
unwrought semi-manufactu red forms, or in 
powder form:  
 7108.1 - Non-monetary  
 7108.11 --- Powder  
 7108.12 --- Other unwrought forms  
 7108.13 -- Other semi-manufactured forms:  
 7108.20 - Monetary  
71.09 7109.00 Base metals or silver , clad with gold, not further 
worked than semi-manufactured  
71.10  Platinum, unwrought or in semi-manufactured 
forms, or in powder form  
 7110.1 Platinum  
 7120.11 Unwrought or in powder form  
 7110.19 -- Other  
 7110.2 Palladium Ministry of Economy 
 7110.21 -- Unwrought or in powder form  
 7110.29 -- Other  
 7110.3 Rhodium  
 7110.31 - Unwrought or in powder form  
 7110.39 -- Other  
 7110.4 Iridium, osmium and ruthenium  
 7110.41 -- Unwrought or in powder form  
 7110.49 -- Other  
71.11 7111.00 Base metals, silver or  gold, clad with platinum, 
not further worked than semi-manufactured  
71.18  Coin  
 7118.10 - Coin (other than gold coin), not being legal 
tender   
 7118.90 - Other  
84.01  Nuclear reactors;  fuel  elements (cartridges), non-
irradiated, for nuclear reactors, machinery and apparatus for isotopic separation:  
 8401.10 - Nuclear reactors  
 8401.20 Machinery and apparatu s for isotopic separation, 
and parts thereof  
 8401.30- Fuel elements (car tridges), non-irradiated  
 8401.40 Parts of nuclear reactor  
87.10 8710.00 Tanks and other ar moured fighting vehicles, 
motorised, whether or not  fitted with weapons 
and parts of such vehicles Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
89.06 8906.00 Other vessels, including warships and lifeboats 
other than rowing boats:  
 8906.001 --- Warships of all sorts  
93.01 9301.00 Military weapons, other than revolvers, pistols 
and the arms of heading No.9307  
93.02 9302.00 Revolvers and pistols, other than those of 
heading No.9303 or 9304  WT/ACC/SPEC/HRV/7/Rev.2 
Page 88  
 
HS code Product description Licensing authority 
93.03  Other firearms and si milar devices which operate 
by firing of an explosive charge (for example, 
sporting shotguns and ri fles, muzzle-loading 
firearms, very pistols and other devices designed to project only signal flar es, pistols and revolvers 
for firing blank ammunition, captive-bolt humane 
killers, line-throwing guns):  
 9303.10 - Muzzle-loading firearms  
93.05  Parts and accessories of articles of heading 
Nos,9301 to 9394  
 9305.10 -- Of revolvers or pistols  
 9305.101 --- Shotguns for spear-fishing  
 9305-109 --- Other  
 9305.90 - Other  
 9305.901 --- Products falling within heading No. 9301  
 9305.909 --- Other  
93.06  Bombs, grenades, torped oes, mines, missiles and 
similar munitions of wa s and parts thereof;  
cartridges and other ammunition and projectiles and parts thereof, includ ing shot and cartridge 
wads: Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
 9306.10 - Cartridges for riveting or similar tools or for 
captive-bolt humane killers and parts thereof  
 9306.2 Cartridges for shotguns an d parts thereof;  air gun 
pellets  
 9306.21 --- Cartridges  
 9306.29 -- Other  
 9306.30 - Other cartridges and parts thereof  
 9306.90 - Other  
93.07 9307.00 Swords, cutlasses, ba yonets, lances and similar 
arms and parts thereof and scabbards and sheaths thereof  
97.01  Paintings, drawings and pastels, executed entirely 
by hand, other than drawings on heading No. 4906 and other than hand-painted or hand-decorated manufactured articles;  collages and 
similar decorative plaques  
 9701.10 - Paintings (for example, oils, aquarelles and 
pastels) and drawings  
 9701.90 - Other Ministry of Culture 
 
97.02 9702.00 Other engravings, prints and lithographs  
97.03 9703.00 Original sculptures a nd statuary, in any material  
97.05 9705.00 Collections and collec tor's pieces of zoological 
botanical, mineralogical, anatomical, historical, 
archaeological, palaeotological, ethnographic or numismatic interest  
97.06 9706.00 Antiques of an age exceeding 100 years  
  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 89 
 
 
Table 7  
Imported Products Subject to Product Quality Control  
and Regulations for the Control of these Products  
 Product Description 
1. Meat and Meat Products  
The regulation on the quality of  meat of beef cattle and veni son (Narodne Novine. No. 53/91); 
The regulation on the quality of meat products (Official Gazette No. 53/91); 
The regulation on the quality of pork and its categorization (Official Gazette No. 53/91). 
2. Fish, Cray-Fish, Mussels, Sea-Urchins, Frogs, Turtles, Snails and Related Products  
The regulation on the quality of fish, cray-fish, mu ssels, sea-urchins, frogs, turtles, snails and 
related products (Official Gazette No. 53/91). 
3. Milk, Dairy Products  and Pure Cultures  
The regulation on the quality of milk, dairy products and pure cultures (Official Gazette 
No. 53/91). 
4. Ice-Cream, Ice-Cream Prod ucts and Frozen Desserts  
The regulation on the quality of milk, dairy products and pure cultures (Official Gazette 
No. 53/91. 
5.  Eggs and Egg Products  
The regulation on the quality of eggs and egg products (Official Gazette No. 53/91). 
6.  Fruit, Vegetables, Mushrooms and Related Products  
The regulation of the quality of  fruit, vegetables, mushrooms and related products (Official 
Gazette No. 53/91). 
7. Coffee, Coffee Products and Produ cts Made of Coffee Substitutes  
The regulation of the quality of coffee, coffee pr oducts and products made of coffee substitutes 
(Official Gazette No. 53/91). 
8. Teas  
The regulation of the quality of coffee, coffee products and products made of coffee substitutes, 
tea, condiments, leaven, baking powder, pudding powder and low-caloric products (Official 
Gazette No. 53/91). 
9. Condiments, Condiment Extr acts and Condi ment Mixtures  
The regulation of the quality of  condiments, condime nts extracts and c ondiment mixtures 
(Official Gazette No. 53/91). 
10. Mustard  
The regulation of the quality of coffee, coffee products and products made of coffee substitutes, 
tea, condiments, leaven, baking powder, pudding powder and low-caloric products (Official 
Gazette No. 53/91). 
11. Common Salt and Brining Salt  
The regulation of the quality of salt used as food (Official Gazette No. 53/91). 
12. Soups. Soup Concentrates. Sauce Concentrates and Food Supplements  
The regulation of the quality of soups, soup concentrates, sauce c oncentrates and food 
supplements (Official Gazette No. 53/91). 
13. Leaven, Baking Powder, Pudding Powder  
The regulation of the quality of leaven (Official Gazette No. 53/91). 
The regulation of the quality of coffee, coffee products and products made of coffee substitutes, 
tea, condiments, leaven, baking powder, pudding powder and low-caloric products (Official 
Gazette No. 53/91). 
14. Additives Used in Production of Food  
The regulation of the quality of additives for food products. 
15. Grain, Baking Products, Pasta and Deep Frozen Pasta  
The regulation of the quality of grain, baking pr oducts, pasta and deep frozen pasta (Official 
Gazette No. 53/91). WT/ACC/SPEC/HRV/7/Rev.2 
Page 90  
 
 Product Description 
16. Biscuits and Biscuit-Related Products  
The regulation of the quality of biscuits a nd biscuit-related produc ts (Official Gazette 
No. 53/91). 
17. Food Oils and Vegetable Fats, Margarin e, Mayonnaise and Other Related Products  
The regulation of the quality of oils and vegetable fats, margarin e, mayonnaise and other related 
products (Official Gazette No. 53/91). The regulation of the quality of olive oil a nd blended olive oil (Official Gazette No. 53/91). 
18. Sugar and Re lated Products  
The regulation of the quality of oils and vegetable fats, margarin e, mayonnaise, sugar, honey and 
sugar-related produc ts (Official Gazette No. 53/91). 
19. Honey and Other Apiary Products  
The regulation of the quality of honey and other apiary products and regul ations on methods of 
quality control of honey and other apiary  products (Official Gazette No. 53/91). 
20. Cacao Products, Creams, Candies and Re lated Products  
The regulation of the quality of cacao products , chocolate-related produc ts, candies (Official 
Gazette No. 53/91). 
21.  Alcoholic Beverages  
The regulation of the quality of alcoholi c beverages (Official Gazette No. 53/91). 
22. Beer  
The regulation of the quality of alcoholic a nd non-alcoholic beverage s (Official Gazette 
No. 53/91). 
23. Non-Alcoholic Beverages  
The regulation of the quality of non-alcoholic beverages and soda-wat er (Official Gazette 
No. 23/97). 
24. Vinegar and Acetic Acid  
The regulation of the quality of vinegar and diluted acetic acid (Official Gazette No 53/91). 
25. Products Rich in Protein and Products Made of Bland of Proteins. Products for Food Industry  
The regulation of the quality of products rich in protein and products made of bland of proteins, 
products for food industry (Off icial Gazette No 53/91). 
26. Fodder and Pet-Food  
The regulation of the quality of fodder (Official Gazette No 53/91). 
27. Fuel Oils  
The rules regulating the quality of fuel oils (Official Gazette No. 53/91). 
28. Jet Engine Fuels  
The rules regulating the quality of jet en gine fuels (Official Gazette No. 79/95). 
29. Pure bred breeding heifers  
Law on Cattle Breeding (Off icial Gazette No. 70/97) 
. 
.  WT/ACC/SPEC/HRV/7/Rev.2 
 Page 91 
 
 
Table 8 
Products subject to sanitary measures  
Tariff 
No. Product description Measure 
01 Live animals; animal products Veterinary regulations 
Health regulations 
02 Meat and edible meat o ffal Veterinary regulations 
Health regulations 
03 Fish, crustaceans, molluscs and other aquatic 
invertebrates Veterinary regulations 
Health regulations 
04 Dairy products, honey, eggs  Veterinary regulations 
Health regulations 
05 Products of animal origin  Veterinary regulations 
Health regulations 
15 Animal fats, prepared edible fats, animal waxes Veterinary regulations 
Health regulations 
16 Preparations of meat, fish, crustaceans, molluscs or 
other aquatic invertebrates Veterinary regulations 
Health regulations 
21 Miscellaneous edible prepara tions Veterinary regulations 
Health regulations 
23 Chemical Residues  Veterinary regulations 
Health regulations 
 Animal feed Veterinary regulations 
Livestock  regulations 
 WT/ACC/SPEC/HRV/7/Rev.2 
Page 92  
 
Table 9
 
Products subject to phytosanitary measures  
Tariff Number Plants and Plant Product Description 
06.01 - 06.04 Living trees and other plants, bulbs, roots and similar, cut flowers and 
ornamental leaves 
07.01 - 07.14 Edible vegetables and certain r oot and tubers fresh or dried (excluded  
frozen and conserved) 
08.01 - 08.14 Edible fruits and nuts, peel of citrus fruit or melons fresh or dried 
(excluded  frozen, conserved, boiled) 
09.01 - 09.10 Coffee unroasted, tea, mate  and spices -  unpacked and unprocessed 
10.01 - 10.08 Cereals 
11.01 - 11.06 Products of milling industry – excluded malt, starch, inulin and gluten 
12.01 - 12.14 Oil seeds and fruits, miscellane ous grains, seeds and fruits, industrial and 
medicinal plants, straw and fodder  
14.01 - 14.04 Vegetable planting materials, vegetable products not elsewhere specified 
or included 
18.01 - 18.02 Cocoa beans, whole or broken, unroasted 
23.00 - 23.09 Residues and waste from the food industries, prepared animal fodder 
24.01 Unmanufactured tobacco, tobacco refuse 
27.03 Peat (including peat litter) 
31.01 Vegetable fertilizers, fertilizer produced by the mixing of animal and 
vegetable products 
38.08 Insecticides, rodenticides, fungicid es, herbicides, anti-sprouting products 
and plant-growth regulators, disinfect ants and similar products, put up in 
forms or packing for retail sale 
44.01- 44.18 Wood and wood products – excluded wood chemically or heat treated 
45.01 Natural cork, raw or simply prepared, waste cork, crushed, granulated or 
ground cork 
50.01 Silk - worm cocoons suitable for reeling 
50.03 Silk waste (including cocoons unsuitable for reeling, yarn waste and 
garnetted stock) 
52.01 - 52.02 Cotton, not carded or combed, cotton waste 
53.01 Flax raw or processed but not spun, tow and waste  (including yarn 
waste and garnetted stock) 
53.02 True hemp, raw or processed but not spun, taw and waste of true hemp 
53.03 Jute and other bast, raw or pr ocessed but not spun, tow and waste of 
these fibres 
53.04 Sisal and other textile fibres of the genus Agave  raw or processed but 
not spun 
.  
  WT/ACC/SPEC/HRV/7/Rev.2
 Page 93Table 10:  Status of Legislation on Inte llectual Property Rights in Croatia (July 1999)  
 
Parts Sections Articles Full compliance already existing 
pursuant to the laws being 
previously in force Full compliance achieved pursuant to: 
    laws adopted on 
30 June 1999 the pertaining 
Regulations 
1 2 3 4 5 6 
Agreement on Trade-Related Aspects of Intellectual 
Property Rights      
Part I      
General Provisions and Basic 
Principles  Articles 1-8  MACL, PL,TL,IDL, LGI, 
LPLDIC  
      
Part II Section 1:     
Standards Copyright And Related Articles 9-14  CL & MACL  
Concerning the Rights     
Availability,      
Scope and Use Section 2:     
of Trademarks Articles 15-21  TL RuTL 
Intellectual 
Property Rights      
 Section 3: 
Geographical Indications  
Articles 22-24   
LGI  
RuLGI 
      
 Section 4:      
 Industrial Designs Articles 25-26  IDL RuIDL 
      
 Section 5:     
 Patents Articles 27-34 LPPV PL RuPL 
      
 Section 6:      
 Layout-Designs 
(Topographies) Articles 35-38  LPLDIC RuLPLDIC  
 WT/ACC/SPEC/HRV/7/Rev.2 
Page 94 
 
 Section 7:      
 Protection of Undisclosed 
Information Article 39 LT, LPDS, LPP, LMMP   
      
 Section 8:     
 Control of Anti-Competitive 
Practices in Contractual 
Licences  
Article 40  
LOR   
      
Part III Section 1:     
Enforcement General Obligations Article 41 LCP   
of      
Intellectual Section 2:     
Property 
Rights Civil and Administrative 
Procedures and Remedies Articles 42-49 LCP, LO, LE, PL, TL, IDL, LGI, 
LPLDIC   
      
 Section 3:     
 Provisional Measures Article 50 LE, PL, TL, IDL, LGI, LPLDIC   
      
 Section 4:      
 Special Requirements 
Related to Border Measures Articles 51-60  CL RuCL 
      
 Section 5:     
 Criminal Procedures Article 61 PL, LPP   
      
Part IV      
Acquisition and Maintenance 
of Intellectual Property Rights Article 62 LGAP, LAD PL, LPPV, TL, IDL,LIG, 
LPLDIC  
  
  WT/ACC/SPEC/HRV/7/Rev.2
 Page 95LEGEND (KEY) 
 
CL Copyright Law   NN 9/99 
LPPV    Law on the Protection of Plant Varieties  NN 131/97  
LT Law on Trade NN 11/96, 75/99  
LPDS  Law on the Protection of Data Secrecy NN 108/96 
LPP Law on the Protection of Plants NN 10/94  
LMMP Law on Medicines and Medical Products NN 124/97  
LOR  Law on Obligatory Relations  NN 53/91; 73/91; 
  111/93; 3/94;107/95; 7/96 
LCP  Law on Civil Procedure NN 53/91; 91/92 
LE Law on Enforcement   NN 57/96  
LPP Law on Penal Procedure  NN 110/97  
PL Penal Law NN 110/97  
LAP  Law on General Administrative Procedure NN 53/91 
LAD Law on Administrative Disputes  NN 53/91; 9/92; 77/92  
 MACL  Modified and Amended Copyright Law 
TL Trademark Law 
LGI Law on Geographical Indications 
IDL Industrial Design Law 
PL Patent Law 
LPLDIC   Law on the Protection of Layout-Designs of Integrated Circuits 
CL Customs Law 
 
RuTL  Regulations under the Trademark Law 
RuGI  Regulations under the Law on Geographical Indications 
RuIDL  Regulations under the Industrial Design Law 
RuPL  Regulations under the Patent Law 
RuLPLDIC   Regulations under the Law on the Protection of Layout. 
RuCL  Regulations under the Customs Law  
NN Official Gazette of the Republic of Croatia 
 
  
 
__________