WORLD TRADE
ORGANIZATIONG/SG/N/1/HRV/2
15 July 2002
(02-3921)
Committee on Safeguards Original:  English
NOTIFICATION OF LAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TO SAFEGUARD MEASURES
CROATIA
The following communication, dated 12 July 2002, has been received from the Permanent
Mission of Croatia.
_______________
Pursuant to Article 39c of the Law on Trad e ("Official Gazette", No. 11/96, 75/99, 76/99,
62/01 and 109/01), the Government of the Republic of Croatia, at its session of 13 June 2002 adopted
this
DECREE
ON SAFEGUARD MEASURES
I. GENERAL PROVISIONS
Article 1
This Decree sets out terms and procedures for the introduction of safeguard measures on
imports of products into the customs territory of the Republic of Croatia in such increased quantities,
absolute or relative to domestic production and under such conditions as to cause or threaten to cause
serious injury to the domestic industry with the aim to remedy injuries and distortions caused by suchimports.
Article 2
The terms used in this Decree shall have the following meanings:
1. "Domestic industry" means the production of the like or directly competitive products at the
customs territory of the Republic of Croatia, which is consisting of all the producers of these products
or producers whose output of the products constitutes a major proportion of the total production of
these products.
2. "Serious injury", means the significant impairment in the position of the domestic production.3. "Imports" means the release of products into free circulation in the customs territory of the
Republic of Croatia.G/SG/N/1/HRV/2
Page 2
4. "Threat of serious injury" means the estimation of the danger for the impairment of the
domestic industry.
5. "Like product" means a like product,  including its physical characteristics, quality and
appearance.
6. "Directly competitive product" means a product with different physical characteristics or
composition than the imported product under investigation, but which may have the same or like
functions or the same or like market effects as the imported product, or which fulfils the same or like
needs and may be a substitute for the imported product in the market.
7. "Interested parties" means the authorities of exporting countries, exporters, importers and
domestic producers of the like or a directly competitive products and other domestic and foreign
natural and legal persons that, during a procedure, demonstrate their direct legal and material interest
in the product concerned.
8. "Exporting country" means the country of origin, and in case of a product, which is not
exported to the customs territory of the Republic of Croatia directly from the country of origin, it is
the country of imports.
Application of Safeguard Measures
Article 3
Safeguard measures shall be applied on exceeding imports of a specific product into the
customs territory of the Republic of Croatia, if it has been determined in an investigation that, as a
result of an absolute or relative increase of imports, an injury has been caused to the domestic industry
or the threat of serious injury to the domestic production.
Safeguard measures shall not be applied against a product originating in a developing country
Member of the World Trade Organization as long as  its share of imports of the product concerned
does not exceed 3 per cent of the total imports of the product concerned, provided that developing
country Members of the World Trade Organization with less than 3 per cent import share collectivelyaccount for not more than 9 per cent of total imports of the product concerned into the customs
territory of the Republic of Croatia.
II. PROCEDURE FOR IMPOSING SAFEGUARD MEASURES
Investigation
Article 4
An investigation shall determine serious injury th at has been caused or the threat of serious
injury to domestic industry, as a result of increased imports into the customs territory of the Republic
of Croatia.
The facts and evidence, which are evaluated in an investigation, shall be in particular:
- the rate and amount of increased imports of the product concerned in absolute or relative
quantities and values in relation to domestic production and consumption.G/SG/N/1/HRV/2
Page 3
- the price of the imported product, especially where there has been a major reduction in price in
comparison with the price of the like directly competitive product.
- effects on domestic industry shown in the trends of such economic indicators as:
- a change in the share on the domestic market based on increased imports,
- a change in the level of sales, production, pr oductivity, capacity utilization, profits and losses
status and the impact of increased imports on employment in a particular production sector,
- the impact of imports on the domestic market supply and on an increased level of dependence on
imports,
- a reduction in prices of a like domestic or directly competitive product or the prevention of prices
rises which would normally have taken place,
- increased stocks of imported products on the domestic market.
The facts and evidence under paragraph 2 of this Article have to indicate a direct causal link
between increased imports and the effect on the domestic industry.
If other factors exist that are affecting domesti c industry, such as technological changes and
changes in consumer preferences, these shall not be deemed to be a cause of serious injury or threat of
serious injury in the sense of this Decree.
Proposal to initiate an investigation
Article 5
A proposal to initiate an investigation (hereinafter proposal) shall be submitted to the Ministry
of Economy (hereinafter the Ministry), by the produc ers under paragraph 1 of Article 2 of this Decree.
The proposal to initiate an investigation may not be submitted by producers commercially or
otherwise linked with importers or exported or if they are themselves the importers of the product
concerned.
The proposal shall be filed in writing and it shall contain the following data:
- the description of the product being imported in increased quantities, with tariff number
(at 8 or 10 digits level) and the description in accordance with the regulations on customs
tariff;
- the name and the address of producer, exporter or importer of the product concerned;
- data under paragraphs 2 and 3 of Article 4 under this Decree;
In the event of a threat of a serious injury, in addition to data under paragraph 2 of this
Article, the proposal shall contain the evidence of the possibility of a further increase in imports,considering volume and dynamism, based on:
- sales agreements,G/SG/N/1/HRV/2
Page 4
- public tenders,
- biding offers,
- increased export capacity of the exporting country.
Initiation of an investigation
Article 6
Within the period of fifteen days from the receipt of a proposal for the initiation of an
investigation, the Ministry shall examine whether the proposal was submitted in accordance with
Article 5 of this Decree.
If the proposal is incomplete, the Ministry shall invite the applicant to complete or correct it
within the period of fifteen days.
The investigation shall not be initiated:- if an applicant does not complete or correct the proposal, on the invitation by the
Ministry, within the period concerned,
- if an applicant withdraws the proposal prior to a decision on the initiation of an
investigation,
- if the proposal to initiate an investigation was submitted by a unauthorized producer in
accordance with Article 5 of this Decree.
If an applicant withdraws the proposal after the investigation was initiated, the Ministry shall
adopt a decision to cease the investigation.
On the basis of an incomplete proposal received from an authorized applicant, the Ministry
may adopt a decision to initiate an investigation or to postpone the adoption of the decision to initiatean investigation for an indefinite period until it receives the complete proposal.
Article 7
The decision to initiate an investigation shall be published in the "Official Gazette" and it
shall contain:
- the date of the initiation of an investigation,
- the data on the product under investigation,
- a summary of the proposal for the initiation of an investigation,
- the list of exporting countries of the produc t that the investigation is related to, and
- the period within which the interested parties may communicate their standpoints, opinions and
written evidence and the period within which they may request verbal hearings.G/SG/N/1/HRV/2
Page 5
The interested parties shall communicate their standpoints and submit evidence within the period of
fifteen days at least from the publication of the Decision in the "Official Gazette".
Article 8
Interested parties may, within the periods defined in Article 7 of this Decree, communicate their
standpoints, opinions and submit evidence on the necessity of imposing safeguard measures.
If an interested party submits untruthful data or if the data are submitted after the expiry of the
periods defined in Article 7 of this Decree, such data shall not be considered and other accessible data
shall be used.
Article 9
On the basis of data and evidence gathered in an investigation, the Ministry shall prepare a
report containing findings on actual situation in the domestic industry, in particular, whether the
increased imports cause or threaten to cause serious injury to the domestic industry and the proposal
of the necessity to impose safeguard measures.
The Ministry shall submit the report under paragraph 1 of this Article to the Government of the
Republic of Croatia (hereinafter: Government)
Article 10
The Government shall adopt a Decision on the imposition of safeguard measures on the basis of
the report under Article 9 of this Decree.
The Decision on the imposition of safeguard measures shall be published in the "Official
Gazette" and it will contain:
- data on goods subject to investigation,
- findings on actual situation in the domestic industry, in particular, whether the increased
imports cause or threaten to cause serious injury to the domestic industry,
- proposal of the type of safeguard measure and its level of safeguard measure if it is the case
of an increase of the rate of customs duty or the manner of allocating quota in case of
quantitative restrictions,
- duration of safeguard measure, as well as the manner of its progressive liberalization during
the period of its application.
The safeguard measure shall not be applied to goods already on route to the customs territory of
the Republic of Croatia, on the condition that the final destination of these products can no longer be
changed.
The Government shall not adopt the Decision on the imposition of safeguard measure if it is not
evident from the report containing findings that the imports of goods under investigation have not
caused serious injury or if there is not threat of serious injury to the domestic industry.G/SG/N/1/HRV/2
Page 6
The Ministry shall adopt a Decision to cease the investigation in cases defined in paragraph 4 of
this Article, which shall be published in the "Official Gazette".
III. SAFEGUARD MEASURES
Article 11
Safeguard measures in the sense of this Decree shall be adopted in to form of increased rate of
customs duty or quantitative restriction of imports of a specific product (hereinafter: quota).
If a safeguard measure has been adopted in the form of a quota, the volume of this quota for a
product may not be set under the average annual level of imports of that product in the last three-year
period, except in case when it is necessary to prevent or remedy serious injury.
Within the quota defined in paragraph 2 of this Article, in cases in which a quota is allocated
among supplying countries, the Government may agree with World Trade Organization membershaving a substantial interest in supplying the product to the customs territory of the Republic of
Croatia on the method of allocating shares in the quota.  In cases in which this method is not
practicable, the determined quota shall be allotted based on the proportions of exporting countries in
the total quantity of imports of the product into the Republic of Croatia during a representative period,
due account being taken of any special factors which may have affected or may be affecting the tradein the product.
Duration of safeguard measures
Article 12
The duration of safeguard measure shall be set only for such a period of time as it is necessary
to remedy the serious injury or as it is necessary for the domestic industry to adjust.  This period shall
not exceed four years from the date of imposition of safeguard measure.
If the duration of a safeguard measure is estimated to exceed one year, it shall be
progressively liberalized at regular intervals during the period of application.
If the duration of the safeguard measure exceeds three years, not later than eighteen months
from the application of the measure, the Ministry shall review the measure and estimate if it is
necessary to continue with the application or to alleviate the measure.
The Ministry shall propose to the Government to abolish the safeguard measure, or to
alleviate the measure, if, on the basis of the data gathered, the Ministry finds that there are no reasons
for the continued application of the safeguard measure.
Extending of the application of safeguard measure
Article 13
A safeguard measure may, for well-founded reasons, based on the proposal of producers
under paragraph 1 Article 5 of the Decree, be extended for a further period of four years.G/SG/N/1/HRV/2
Page 7
The proposal for extending the application of a safeguard measure shall not be filed earlier
than three months after the imposition of the safeguard measure, and not later than six months prior to
the date of termination of such a measure.
An extension is possible if the Ministry conducts a new investigation in accordance with
Article 5 of this Decree and determines that the application of the safeguard measure is still justified
in order to prevent or remedy serious injury for the domestic industry.
The safeguard measure, which is extended in accordance with paragraph 1 of this Article,
shall not be more restrictive than the safeguard measure previously applied.
Renewed imposition of safeguard measure
Article 14
The Government shall not provide for the renewed imposition of a safeguard measure for the
same product.  Exceptionally, the measures shall be imposed on the product concerned only after the
expiry of the period equal to that during which such a measure had been previously applied, provided
that the period of non-application is at least two years.
Exceptionally, the Government shall impose the measures again for the duration of 180 days
or less, if at least one year period elapsed from the imposition of previous measures, and  if the
safeguard measures has not been applied on the same product more than twice in a five year period.
Provisional safeguard measures
Article 15
The proposal for the imposition of a provisional safeguard measure shall be filed to the
Ministry by producers under paragraph 1 Article 5 of this Decree.
Where delay of the imposition of safeguard measures would cause damage to the domestic
industry that would be difficult to repair, on the proposal of the Ministry, the Government may take a
provisional safeguard measure, if on the basis of clear evidence it determined that increased imports
have caused or threatened to cause serious injury to the domestic industry.
The Government may impose a provisional safeguard measure in the form of tariff increases.The duration of the provisional measure shall not exceed 200 days.  The duration of any such
provisional safeguard measure shall be counted as a part of the initial period of the final safeguard
measure or its extension if it would be imposed.
Provisional safeguard measure may not be extended.
Article 16
The Government's Decision on the imposition of the provisional safeguard measure under
paragraph 2 Article 15 of this Decree shall be published in the "Official Gazette" and it shall contain:G/SG/N/1/HRV/2
Page 8
- a description of the product with its tariff number ( at 8 or 10 digits level) for which the safeguard
measure is imposed;
- the duration of the safeguard measure;
- the manner and conditions of the application of the safeguard measure.
A provisional safeguard measure shall not apply to products, which are already en route to the
customs territory of the Republic of Croatia, on the condition that the final destination of these
products cannot be changed any longer.
Article 17
If in a later investigation conducted in accordance with Article 5 of this Decree it is found that
there is no serious injury or threat of serious injury to the domestic industry, the Government shall, on
the proposal of the Ministry, adopt a decision to terminate the validity of the provisional safeguardmeasure.
In the case under paragraph 1 of this Article, the tariff increases that have been paid on the
basis of a provisional safeguard measure shall be refunded.  The person eligible shall enclose with a
written request to the Ministry of Finance-Customs Administration, the original proof of payment ofcustoms duty and the document on the basis of which the product was dutiable.
The additional customs duty paid shall ex officio be reconciled with the due current debt
owed by the eligible person resulting from import duties.  If the eligible person has no such debt, the
Ministry of Finance-Customs Administration sha ll refund additional customs duty paid within a
period of 30 days from the day of issuing of the decision to refund.
No interest shall be calculated for the customs duty that was additionally paid under
paragraph 2 of this Article.
IV. PROTECTION OF CONFIDENTIAL INFORMATION
Article 18
Information acquired by the Ministry for the implementation of this Decree shall be used only
for the needs of investigation for the imposition of safeguard measures, pursuant to this Decree.
Each interested party may designate as confidential the information that they submitted to the
Ministry during an investigation.
V. FINAL PROVISION
Article 19
This Decree shall enter into force on the eight day of its publication in the "Official Gazette".
__________