RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/HRV/48
23 April 1999
(99-1668)
Working Party on the
Accession of CroatiaOriginal:  English
ACCESSION OF CROATIA
Additional Questions and Replies
The following additional questions and replies have been received from the Ministry of
Economic Affairs of the Republic of Croatia.1
_______________
                                                     
1 Unless otherwise stated, the questions and  replies  refer to the “Elements of a Draft Report”, circulated
in Document WT/ACC/SPEC/HRV/6/Rev.1WT/ACC/HRV/48
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Table of Contents
Page Question
I. ECONOMIC POLICIES AND FOREIGN TRADE
1. Economic Policies
(a) Main directions of the ongoing economic policies
State ownership and privatization 3 1
Pricing policies 4 2
II. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES
2. Implementation of WTO Provisions 5 3
6. Right of Appeal 6 4
Central/subcentral authority for WTO 6 5
III. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation 7 6
(c) Tariff rate quotas, tariff exemptions 8 7
(d) Other duties and charges levied on imports but not on domestic
production8 8 - 12
(e) Quantitative import restrictions, including prohibitions, quotas
and licensing systems11 13 - 18
(h) Customs valuation 12 19
(i) Other customs procedures (rules of origin) 15 20
(k) Application of internal taxes to imports 16 21
(m) Antidumping, countervailing duties and safeguard regimes 16 22
2. Export Regulation
(b) Customs tariffs, fees and charges for services rendered,
application of internal taxes to exports17 23
(c) Export restrictions 17 24
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidies 18 25
(b) Technical barriers to trade, sanitary and phytosanitary
measures18 26
Standards and certification
(e) State trading entities 22 27
(f) Free zones, special economic areas 23 28
(l) Government procurement 23 29
(m) Transit 23 30
V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME24 31
VI. TRADE-RELATED SERVICES REGIME
2. Policies Affecting Trade in Services 24 32
Transparency 24 33
(c) Trade agreementsWT/ACC/HRV/48
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I. ECONOMIC POLICIES AND FOREIGN TRADE
1. Economic Policies:
(a) Main directions of the ongoing economic policies
State Ownership and Privatization
Question 1.We thank Croatia for its updated material on privatization in the revised draft Working Party
report. We look forward to the table laying out through recent years the past history and
current status of Government privatization activities, which would include the following
information:
a) the total number of socially owned firms that  existed in each period (including those
slated for privatization and those not) as a base number;
b) what kind of firms they were, e.g., retail, manufacturing, agricultural processing, etc.,
and how many were privatized;
c) a sense in the most recent period of the size  as well as the number of the remaining
unprivatized firms (the descriptive method used by Croatia is not important – some
countries measure by size of employment, ot hers by value of output or some other
monetary indicator to indicate “size” of firms.);
d) as necessary, information on State firms liquidated rather than privatized.
We would appreciate more information on the me thods contemplated to approach privatization
of the large State-owned enterprises.
Reply:
The Croatian delegation has submitted the table laying out status of Government privatization
activities to the WTO Secretariat. It will be included in the Draft Report.
The process of privatization of the large state-owned enterprises should begin in 1999. Each
company shall be privatized in accordance with a special law that will be adopted by the Croatian
Parliament. The law will determine for every enterprise the share of the company, which will be
privatized, i.e. offered to foreign and domestic investors. The investors will be chosen on the basis ofa public tender in transparent and legal based manner. Prior to the adoption of each law and beginning
of the process of privatization, the GOC will find a consultant on privatization process, following an
international tendering procedure.
Consultants for Croatian telecom, and banks (Privredna banka, Splitska banka and Rijecka
banka) have already been selected.WT/ACC/HRV/48
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Pricing Policies
Question 2.
We thank Croatia for the additional information on its price controls in Table 2 and in the
Working Party report text, and for the draft commitment paragraph. We would like to clarify a
few points:
(a) At what point of sale are the requirements of the Law on Exceptional Measures of Price
Controls applied, e.g., ex factory, wholesale, or retail? Please include this information in
the Working Party report text.
(b) Croatia has stated in para 28 that regulati ons specify that price controls are not applied
to imports or exports. Does this mean that imports would be exempted from such
controls, or is likely that imports entering the retail trade stream might become subject
to the provisions of the Law on Exceptional Measures of Price Controls when they are
applied to similar domestic products offered for sale in the same establishment?
(c)  Is Croatia prepared to state that “ the price of goods and services in every sector
Croatia were determined freely by market forces with the exception of those noted in
Table 2?” If so, we would like this statement be incorporated in the draft report.
Reply:
(a) According to regulations on the implementation of the Law on Exceptional Measures of Price
Control (provided to the Working Party  members and the WTO Secretariat), the producers of certain
goods and suppliers of certain services (Table  2 in WT/ACC/SPEC/HRV/6/Rev.1) are obliged to
report changes of prices to the Ministry of Economy. They can choose to report either the ex factory,
wholesale or retail sale price, but they are obliged to notify which price is reported. Most of producersnotify ex factory price.
 (b) The regulations on the implementation of the Law on Exceptional Measures of Price Control
(provided to the Working Party  members and the WTO Secretariat) determine the obligation of
domestic producers of certain products or services to report price changes. This means that
exceptional measures of price control can be implemented for a certain range of domestic productsonly.
All other domestic producers of goods and services that are not stated for price control
regime, as well as all importers of foreign products and services, determine prices freely according to
market conditions and their own business policy, w ithout any interference of the Government bodies.
Therefore, it is not possible that imported items en tering the retail trade may become subject to the
provisions of the Law on Exceptional Measures of Price Controls even if these measures are applied
to the similar domestic products offered for the sale in the same establishment.
(c) Croatia accepts that the above mentioned statement be incorporated in the draft report.WT/ACC/HRV/48
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II. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
2. Implementation of WTO Provisions
Question 3.
We appreciate the draft laws and other inform ation provided by Croatia in WT/ACC/HRV/46.
We would appreciate Croatia’s help in tracking the progress of its implementation agenda with
the provision of a chart listing each piece of legislation, the aspects of WTO the legislation
address, and the status of enactment and enforcement. Where regulations will be necessary to
activate the law, please include a status report on their development as well.
Reply:
Implementation of the WTO provisions and agreements in Croatia’s legislation – Laws and
regulations in the process of revision:
WTO provisions/agreements Croatia's legislation Enactment Enforcement
Articles XI, XII, XIX, XX, XXI of
GATT 1994 including Agreement onImplementation on Article VI of the
GATT 1994; Agreement on
Safeguards; Agreement on Subsidies
and Countervailing  Measures
Agreement on Agriculture (Article 5)Law amending Law
on TradeApril/May 1999
(Law passed thefirst reading in
the Parliament)April/May
1999
Agreement on Implementation ofArticle VII of the General Agreementon Tariffs and trade 1994Customs Law June 1999 (The
Law was sent tothe
Parliamentary
Procedure)June 1999
Articles II, III Law amending Law
on excise  taxes on
tobacco and tobacco
productsApril/May 1999
(Law passed the
first reading in
the Parliament)The day of
accession to
WTO
Agreement on Technical Barriers to
TradeLaw on State
InspectorateMay/June 1999
(Law passed the
first reading in
the Parliament)May/June
1999
Agreement on Rules of Origin Decision on rules of
origin(Governmental
Decree)April/May 1999 April/May
1999WT/ACC/HRV/48
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WTO provisions/agreements Croatia's legislation Enactment Enforcement
Agreement on Trade Related Aspects
of Intellectual Property Rights(TRIPS)
(Detailed information concerning
implementation of TRIPS Agreement
in Croatian legislation was alreadysubmitted).Patent Law
Trademark LawIndustrial Design
Law
Law on Layout of
Integrated Circuits
Law on Geographical
Indications
Law on Amendments
of  Copyright LawJune/July (The
Laws are sent tothe
Parliamentary
Procedure)June 1999
 Drafts of all the above mentioned laws and regulations have been submitted to the Working Party  for
comments and remarks.  The Decision on Rules of Origin which will be submitted by the end of
March 1999.
6. Right of Appeal
Question 4.
We would appreciate information from Croatia on how the right of appeal is handled
administratively for issues addressed in WTO Ag reements, and in relation to the “independent
tribunal “ provision of Article X.
Reply:
The Law on Trade, Customs Law, Company Law, and other laws related to the issues
addressed in WTO Agreements stipulate the right of appeal.
The basic principle is that in customs and trade matters, the trader does not appeal to the
administrative body, which has adopted the decision, the subject matter of the appeal. The appeal islodged with a second-degree administrative body. That procedure is governed by the Law on General
Administrative Procedure. The second-degree decisions are final but the trader is entitled to institute
administrative lawsuit with High Administrative Court of the Republic of Croatia.
Central/Subcentral Authority for WTO
Question 5.We note the discussion of central/subcentral relations, which outlines the role of Croatia’s
subcentral authorities in taxation. We would like to see a commitment in the Working Party
text and protocol confirming the responsibility of the central authorities in the enforcement of
WTO provisions in Croatia:WT/ACC/HRV/48
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Reply:
Croatia accepts to take a commitment in the Working Party Report and protocol confirming
the responsibility of the central authorities in the enforcement of WTO provisions in Croatia.
III. POLICIES AFFECTING TRADE IN GOODS
1. Import RegulationQuestion 6.
We seek Croatia’s assistance in incorporating useful information on its customs tariff in this
section, e.g., a description of how the current ta riff was formed by incorporating miscellaneous
border charges and import taxes in the original customs tariff; a chart on the current structure
of the tariff in terms of tariff lines and duty levels; and a description of how many lines are
subject to ad valorem , specific or mixed tariffs. Croatia should also provide information on the
weighted and simple tariff average of the current applied tariff.
Reply:
The present Customs Tariff Law was adopted by the Croatian Parliament in June 1996 and
entered into force as of 1 July, 1996. According to the Law, the nomenclature of customs tariff was
formed on the basis of the International Convention on Harmonized Commodity Description and
Coding System. The customs tariff consists of 7059 tariff items, out of which 4157 tariff itemsaccount for HS classification, and 2902 tariff items account for commodities of national classification.
All tariff items are subject to ad valorem  tariffs, 590 tariff items are subject to compound duties ( ad
valorem  + specific duties). Ad valorem  rates range from 0 to 25 per cent. Simple tariff average is
12.1 per cent, while weighted tariff average is 9 per cent according to the import structure value in
1998.
Structure of the tariffs
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 more 545
The Customs Tariff Law abolished the application of non tariff measures, i.e. terminated the
Law on Special Levies on Import of Agriculture and Food Products and Article 35 of the Customs
Law (which prescribed 1 per cent customs registration fee on imported goods), and special import
levy which amounted 10 per cent.
The new tariff rates determined by the Law were governed by the following basic criteria:WT/ACC/HRV/48
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- tariffs are the only trade policy measure applied in order to protect domestic industrial and
agriculture production;
- the tariffs are considered to be trade policy measure and not fiscal measure;
- the tariffs are in function of development, in particular, the technological reconstruction of the
economy;
- the tariff average should be at the level of tariffs applied in other countries in transition;
- rates exceeding 15 per cent are applied only in order to protect those industries and activities,
which were seriously damaged in war;
- minimum tariff rates are applied to imported raw materials;
- when Customs Tariff Law enters into force, all non tariff measures applied to imports will
cease to be implemented.
(c) Tariff Rate Quotas, Tariff Exemptions
Question 7.
Does Croatia have any tariff rate quotas, either as  part of its MFN tariff regime or as part of a
preferential regime?
Reply:
Croatia’s Customs Law prescribes the possibility to use tariff quotas in exceptional cases on
MFN basis.
The Government of the Republic of Croatia is entitled to adopt a special regulation in the
cases in which tariff quotas are used.
The copy of the mentioned Decree will be provided to the WTO Secretariat.
Croatia has also tariff rate quotas as part of a preferential regime in trade with the Former
Yugoslav Republic of Macedonia and the Republic of Slovenia. These tariff quotas are based on free
trade agreements with those countries, and they are applied for agricultural and food products.
(d) Other Duties and Charges Levied on Imports but not on Domestic Production
Question 8.
Does Croatia require consular authentication or registration of customs documents in the
country of origin? If so, are fees charged for these operations?  If so, how much?
Reply:
Croatia does not require consular authentication or registration of customs documents in the
country of origin.
Question 9.
In response to question 8 of WT/ACC/HRV/4 5, Croatia explains that it levies an
administrative tax on imports of hazardous waste, an annual licensing fee of 20.000 kunas. AreWT/ACC/HRV/48
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firms dealing in domestically generated hazardous waste subject to a similar licensing
requirement or fee? If not, why not? Does this waste product have an economic value, or are the
imports solely for the purpose of disposal?
Reply:
In accordance with the provisions of the Law on Waste, Croatian companies dealing with
waste and hazardous waste in domestic market are subject to a licensing procedure. Also, the
companies dealing with waste have to comply with special requirements concerning personnel,
technical and technological equipment, etc. The stamp tax for the issuance of the license on
compliance with the technical and technological requirements of the premises, equipment and
buildings, for the companies dealing with hazardous waste in domestic market is charged in an
amount of 1000 kunas.
At the same time, companies producing waste or handling it are under obligation to keep
records containing data on category, quantity, place of origin and place of storage, treatment and
waste disposal. This data should be sent quarterly to a competent state authority in charge of
environment protection. Special procedure is required for companies dealing with hazardous waste.
The system of transboundary movement (impor t/export) of hazardous waste is carried out
according to the Law on Waste which is in full compliance with the requirements of the Basel
Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
(the Croatian State Parliament ratified the Conv ention in March 1994). The Convention puts special
emphasis on the control of transboundary movements (export-import) by competent State authorities
(Articles 4,5 and 6).  It implies the issuance of appropriate licenses for export, import and transit of
hazardous waste (as prescribed by the Convention), reporting and co-operation with other countriessignatories of the Convention, joint consultations, as well as reporting of all the activities of the
parties on transboundary movements of hazardous waste, including licenses issued by competent
authorities (Article 15).
The above mentioned obligations under the Convention on Transboundary Movements
require a special care of the administrative bodies and additional administrative costs for the issuanceof licenses for import and export of waste. This was the reason why stamp tax for the import of
hazardous waste was more expensive than the stamp tax for licensing domestic waste handling.
Accepting the objections of Working Party members, the Government of the Republic of
Croatia is ready to issue a new decision by 30 June 1999, that will stipulate the lower level of the
stamp tax for import and export of waste (set to 2000 kunas for the both export and import of waste),
thus significantly reducing the existing stamp tax on import of waste of 20.000 kunas.
Question 10.
Can Croatia confirm that imported industrial goods, which are not necessarily classified as
waste, are not subject, under any circumstances, to additional taxes (other than duties) for
environmental purposes?
Reply:
Croatia confirms that all imported industrial goods that are not classified as waste in a regular
procedure of customs clearance are not and shall not be subject to administrative fees and other
additional taxes for environmental purposes other than tariff rates.WT/ACC/HRV/48
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Question 11.
While the text in this paragraph 43 reflects our comm ents, it is not accurate in that it does not
include reference to the 1 percent customs evid ence fee applied to imports from the former
Yugoslavia Republic of Macedonia and the Bosnian Federation. This fee violates WTO
provisions on free trade areas and also on non-ta riff charges applied to imports, and should be
eliminated prior to accession.
Reply:
As indicated in WT/ACC/SPEC/HRV/6/Rev.1 – para 186, according to the FTA with the
Former Yugoslav Republic of Macedonia, Croatia applies 1 per cent regular customs tariff ad valorem
rate on imports from Macedonia, and not a 1 per cent customs evidence fee, as suggested in the
questions.  In its FTA with the Federation of Bosnia and Herzegovina, Croatia applies a 1 per cent
customs evidence fee on imports from the Federation of Bosnia and Herzegovina. Croatia recognizesthat the application of 1 per cent customs tariff rate in its FTA with the Former Yugoslav Republic of
Macedonia is not in compliance with Article XXIV of the GATT, and the application of a 1 per cent
customs evidence fee in its FTA with the Federation of Bosnia and Herzegovina is not in compliance
with Article VIII of the GATT. Therefore, Croati a shall make necessary amendments in its FTA with
the Former Yugoslav Republic of Macedonia and Bosnia and Herzegovina, as indicated in para 186and 187 of the revised Elements of a Draft Report, in order to eliminate all inconsistencies with
Articles VIII and XXIV of the GATT 1994 prior to its accession to the WTO.
Fees and charges for Services Rendered
Question 12.
Croatia states that it charges a stamp tax on cu stoms declarations at a flat rate of HRK 60 per
declaration and that a previous 1 percent ad valorem  charge has been eliminated in the context
of establishing a new tariff in July 1996. Please list all other goods and services subject to stamp
taxes in Croatia and the level of the tax applied. We would like to have confirmation from
Croatia in the Working Party report and protocol that Croatia has eliminated its import
charges not related to the cost of the services.
Reply:
According to the Law on Administrative taxes (Official Gazette 8/96 and 131/97) Croatia
charges stamp tax per customs declaration at a flat rate of 50 kunas and 10 kunas for the document on
the basis on which imported or exported goods are registered to the Customs office, which makes total
of 60 kunas.
Croatia is ready to accept a commitment in the Working Party report and protocol confirming
that from the date of accession it would impose any fees or charges for services rendered related toimportation or exportation only in conformity with Article VIII of the GATT 1994. Information
regarding the application and level of any such fees, revenues collected and their use will be provided
to WTO Members upon request.
(e) Quantitative Import Restrictions, including Prohibitions, Quotas and Licensing Systems
Question 13.Does Croatia charge licensing fees for certain business activities? If so, please list these
activities, cite the law requiring the license and indicate the level of the fee charged.WT/ACC/HRV/48
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Reply:
Croatia does not charge licensing fee for any business activity.
Question 14.
If Croatia has an activity licensing regime, please describe the criteria applied to receive such a
license and the procedures used to grant it, with special reference to (a) activities that involve
importing, and (b) the WTO Agreement on Import Licensing Procedures.
Reply:
Please refer to the Reply 9 in document WT/ACC/HRV/39/Add.2, and document
WT/ACC/HRV/25 – Information on import licensing procedures. Those replies indicate that Croatian
procedure on import licensing is in full comp liance with WTO Agreement on Import Licensing
Procedures.
Question 15.
Croatia states in document WT/ACC/HRV/45 that it abolished all import quotas and other
quantitative import restrictions in 1996 and that  the provisions authorizing the application of
such measures will be eliminated. It is also reported, however, that in recent months Croatia has
applied import bans on pork, wheat, flour, su gar, etc., and additional restrictions on steel.
Croatia’s statement in WT/ACC/HRV/45 that these practices will change under WTO isworrisome given that these are recent activiti es. Acceding countries are expected to being
observing WTO provisions from the time of application. Croatia will need to demonstrate
tangibly that the previous measures for trade regulation have been permanently discarded and
that any further resort to these sorts of measures  will be only in accord with WTO provisions.
Have all these restrictions been abolished? Please confirm that there are no imports at thepresent time subject to quantitative restrictions, bans, restrictive licensing requirements, etc.
Reply:
As indicated in previous  replies, Croatia has abolished all quantitative restrictions on imports.
Import bans on pork, wheat, flour and sugar were temporary measures, and the application of such
bans was abolished. Croatia confirms that all previous restrictive measures for import regulation havebeen permanently discarded and at the present time there are no quantitative restrictions on imports,
bans or restrictive licensing requirements. As indicated in the statement in para 60 of the Elements of
a Draft Report – Revision, Croatia shall take recourse to quantitative import restrictions only in
situations envisaged in Article XII of the GATT 1994 and according to the WTO Agreement on
Safeguards.
Question 16.
Please provide a copy of the legislation repealing Article 40, which allows the application of
quantitative restrictions, to the Working Party for review.
Reply:
The Law on Trade, will be submitted and th e Draft Law Amending the Law on Trade has
been already submitted to the WTO Secretariat.  [WT/ACC/HRV/46]
Article 14 of the Draft Law Amending the Law on Trade stipulates the following:WT/ACC/HRV/48
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“Article 40 changes and reads as follows:
The Government may impose import quotas for balance of payments purposes as well as for
the implementation of measures under Article 38 of the present law (safeguard measures).
The Government may impose export quotas for the purpose of conservation of exhaustible
natural resources of the Republic of Croatia.
Import and export quotas under paragraphs 1 and 2 above are imposed in compliance with
international agreements that the Republic of Croatia entered into.”
Question 17.
Please indicate the reason for Croatia’s licensing requirements on steel products and on
agricultural machinery, e.g., tractors. Are these measures automatic? If not, what criteria are
applied?
Reply:
Please refer to the Reply 57 of the document  WT/ACC/HRV/30 and Reply 9 of the document
WT/ACC/HRV/39/Add2.
Question 18.
As necessary, please list the remaining quantitat ive export restrictions by HS item number and
outline Croatia’s plans for revising these restrictions.
Reply:
 Croatia hereby confirms that there are no quantitative restrictions on exports.
(h) Customs valuation
Question 19.
We reviewed the valuation portion of the Customs Law Draft supplied by your delegation in
Geneva, and wish to raise the following issues:
Article 11 of the WTO Valuation Agreement provides for the right of appeal without penalty to
a judicial authority. Although Article 44.5 states that “ the importer or any other persons liable
for the payment of the duty has the right of appeal, without penalty”, it is not clear whether this
right of appeal is to a judicial authority. Addi tionally, there is no provisions stating that the
notice of the decision on appeal and the reasons for the decision to be given to the appellant in
writing as set forth in Article 11(3) of the WTO Valuation Agreement.
Article 12 of the WTO Valuation Agreement is missing. There is no mention in the draft
Customs Law text as to how the Republic of Croatia intends to implement its transparency
obligations.
Article 14 of the WTO Valuation Agreement. The Republic of Croatia has failed to fully
implement the Interpretative Notes set forth in Annex I of the WTO Valuation Agreement. We
note that in WT/ACC/HRV/30 dated 11 August 1997, the Republic of Croatia stated that the
new customs Law” will contain the operative Interpretative Notes...” Article 14 of the WTO
Valuation Agreement stipulates that the Interpre tative Notes to the Agreement form an integralWT/ACC/HRV/48
Page 13
part of the Agreement and Articles are to be read in conjunction with the Interpretative Notes.
Thus, the text of the Notes, not just the operative Interpretative Notes, must form part of the
implementing legislation. The following Interpretative Notes are not fully implemented:
Interpretative Note, Use of Generally Accepted Accounting Principles;
Note to Article 1, price Actually Paid or payable, last Paragraph;Note to Article 1, Paragraph 1(a) (iii);
Note to Article 1, Paragraph 1(b);
Note to Article 1, Paragraph 2
Note to Article 1, Paragraph 2(b)
Note to Article 2;
Note to Article 3,
Note to Article 5; Points 2 through 11;Note to Article 6;
Note to Article 7;
Note to Article 8, Paragraph 1(b)(ii);
Note to Article 8, Paragraph 1(b)(iv);
Note to Article 8, Paragraph 1(c);Note to Article 8, Paragraph 3
Note to Article 9;
Note to Article 11;
Note to Article 14, Paragraph 4;
Note to Article 1, Paragraph 4(c);andNote to Article 15, concerning dividends.
We will need to see the regulations th at address the Interpretative Notes.
Article 46 in the Republic of Croatia Customs Law is unacceptable. This article allows the
Republic of Croatia to establish “special rules for determining the customs value of goods”. As
an example, Article 46.2 states that perishab le goods delivered on consignment may be valued
based on simplified rules drawn up by the Government of the Republic of Croatia. This
language implies the use of minimum pricing in valuing imported goods. minimum prices or
arbitrary and fictitious pricing is specifically prohibited by Article 7 of the WTO Valuation
Agreement. We note that the Republic of Cr oatia has implemented Article 7 of the WTO
Valuation Agreement in its article 37.WT/ACC/HRV/48
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Article 41.1 of the Republic of Croatia’s Customs Law needs further clarification. What is
meant by the term “counter-value”? How are goods imported into the Republic of Croatia with
“counter –value “ valued?
Article 44.1 of the Republic of Croatia’s Customs Law provides that “the customs value shall be
the value of goods indicated in the seller’s invoi ce, provided that this value complies with the
provisions of the present law concerning to agreed price”. Although this statement is what
commonly occurs under transaction value, it is not technically accurate. Thus, it should not be
stated in the Customs Law. We recommend that this statement be removed.
According to WT/ACC/HRV/45, the draft legislation referred to above is slated to enter into
force this year. Please report on the status of the draft legislation. How close is it to enactment?
Reply:
Article 44.4 of the new Customs Law in accor dance with Article 11 of the WTO Customs
Valuation Agreement. Based on the proposals given during the informal Working Party, Croatia will
revise this Article in order to provide as much clearness as possible in the new Law’s formulations.
Now this Article states as follows:
“The importer or any other person liable for the payment of the duty has the right of appeal with
regard to the determination of customs value, wi thout penalty. The appeal can be submitted to the
Headquarters of the Customs Directorate, while the prosecution has to be referred to the
Administrative Court.
Notice of the decision on appeal and prosecution shall be given to the appellant and the
reasons of such decision shall be provided in writing. As well, the appellant should be instructed
about his right to commence to the Administrative Court.
The appellant must not be subjected to any sort of a fine for the appeal to the Customs
Directorate or prosecuting to the Administrative Court”.
Furthermore, we would like to mention that the appellant has the right to appeal to the
Customs Directorate or prosecution to the Administrative Court, without penalty, and that the decision
on his appeal shall be given to him in writing.
Bearing in mind the above mentioned, we would like to emphasize that this Article is
completely in accordance with Article 11 of the WTO Customs Valuation Agreement.
Article 12 of the WTO Customs Valuation Agreement is included in Article 44.5 of the new
Customs Law. This Article has been adapted as well, now reading as follows:
“Law, regulations, judicial decisions and administrative rulings of general applications that allow the
implementation of regulations in regard to customs value shall be published in the Official Gazette in
conformity with Article X of the GATT 1994.”
By accepting comment regarding Article 46 of the Customs Law, we deleted it accordingly.
Article 41.1 of the Customs Law was also adapted, now reading as follows
“The customs value of goods imported without being on sale shall be determined pursuant to Articles
32-37 of this Customs Law.”WT/ACC/HRV/48
Page 15
Here simply occurred an error while translating; the term “without counter-value payment“
referred to the goods imported, but without the actual act of sale – such as gifts, samples, promotional
items being sent free of charge, goods which are imported under hire, lease or loan etc.
In such cases – since imported goods are not subject to sale, Article 31 (Transaction Value)
must not be used; customs value shall be determined under the provisions of Articles 32-37 ofCustoms Law.
As proposed Article 44.1 is deleted.
Furthermore, we would like to inform that “Int erpretative Notes”, set forth in Annex 1 of the
WTO Valuation Agreement, as well as the Notes specifically mentioned, shall be included into our
implementing regulations. These regulations shall be sent to Working Party as soon as they are
completed and translated in English.
The Draft Customs Law in connection with provisions on customs valuation will be
submitted.
(i) Other customs Procedures (Rules of origin)
Question 20.
The response in WT/ACC/HRV/45 were not helpful. Please address the following questions:
- As provided in the response to question 17 of WT/ACC/HRV 39, please explain the
details and answer previous questions concerning Croatia’s regulations on preferential
and non preferential rules of origin containe d in new regulations sl ated for enactment in
September 1998.
- Please provide an English translation of the regulations to the Working Party for
review.
Reply:
The Croatian Government will adopt new legislation concerning rules of origin prior to
Croatia’s accession to the WTO.
The English translation of the regulation concerning rules of origin will be submitted to the
Working Party for review as soon as it will be finalized and prepared for the adoption by theGovernment, but not later than end of March 1999.
(k) Application of Internal Taxes to Imports
Question 21.
(a) Paragraph 49 states that Croatia will bring its taxes into line with Articles II and III of
the WTO. What measures will be taken to bring the taxes into line with Article II? To
what aspect of the application of the excise taxes does this request refer?
(b) Table 3 indicates that in addition to the discriminatory application of domestic excise
taxes to imported tobacco and tobacco products, i.e. at a higher rate than is charged on
similar imported goods, a lower tax is applied to cigarettes that use a certain percentageWT/ACC/HRV/48
Page 16
of domestic tobacco. Table three also indicates that these are the last excise taxes to be
applied in a discriminatory fashion, and para 48 indicates that legislation removing
these remaining violations of Article III is currently before the Parliament. Please give
us an update on the progress of the legislation bringing the last of the excise taxes into
conformity with WTO provisions. Please rep ort on the structure and level of taxation
proposed for these products in the new legi slation, and an estimate of when the new
legislation will be enacted.
(c) Please confirm that Croatia levies only cu stoms tariff (or the 1 percent statistical fee),
VAT, and excise taxes on imports. If this is not so, please list all other taxes, tariffs,
charges, and fees applied.
Reply:
(a) Croatia has already brought its excise taxes into line with Articles II and III of the GATT
1994, for all products, which are subject of excise taxation, except for tobacco products. The Law
amending the Law on Excise Taxes on Tobacco and Tobacco products has passed the first reading in
the Croatian State Parliament and will be ready for second reading at the end of March 1999.  The
process of adoption has been delayed due to the necessity to pass the new Law on Tobacco stipulating
the growing, production and conditions for industrial production of tobacco products. The TobaccoLaw has also passed the first reading in the Croa tian State Parliament and is ready for the second
reading. The Tobacco Law stipulates tobacco and cigarettes categories on the basis of which the
amount of excise tax will be determined.  Those two Laws are expected to enter into force by 1 June
1999.
(b) The final draft Law Amending the Law on Excise Taxes on Tobacco Products is attached to
this document. The text of the Tobacco Law will be submitted to the Working Party for comments
very soon.  [WT/ACC/HRV/49/Add.1]
(c) Croatia will take a commitment in Working Party report and protocol, stating that from the
date of accession, Croatia will apply its domestic taxes, including those on products listed in Table 3,
in strict compliance with Article III of the GATT 1994, in a non-discriminatory manner to importsregardless of country of origin and to domestically-produced goods.
 (m) Antidumping, Countervailing  Duties and Safeguard Regimes
Question 22.
We are reviewing the amendments to the Law on  Trade addressing antidumping, countervailing
duties and safeguard measures. We will forward comments as soon as possible. Are there any
other provisions of Croatia law or draft laws or regulations that deal with trade remedies like
these? We will expect an appropriate commitmen t in this section, depending on the results of
our review.
Reply:
There are no other provisions of Croatian law or draft laws or regulations that deal with trade
remedies measures.WT/ACC/HRV/48
Page 17
2. Export Regulation
(b) Customs tariffs, fees and charges for services rendered, application of internal taxes to
exports
Question 23.
The discussion in this section of the revised “Elements of a Draft Report” is contradictory, in
that Croatia reports that it has eliminated the authority to apply export duties but now indicates
that it intends to apply such duties to hides and skins. Please provide information on the
legislative authority Croatia intends to use to do this.
Please provide a list of the export duties in place or planned, by HS number, and information on
the level of duty applied, any destinations ex empted from this duty, and any timetable for
elimination of the duties.
Reply:
Croatia has eliminated export duties, which were levied temporarily on certain items (metal
scrap and wood timber). The Governmental Regulation concerning export duties for those items was
abolished in 1996. Abolishing that particular Regulation, Croatia has not eliminated the authority to
apply export tariffs as stipulated in Article 34 (2) of the Customs Law, and which enables GOC to
impose export tariffs in extraordinary circumstances provided for in Article XI of the GATT 1994.(Please refer to the commitment in para 85. of the Elements of a Draft Report – Revision).  At the
moment there are no export tariffs in place for any product.
Croatia proposes the following commitment to be  included in the Working Party Draft report
and protocol:
 "The representative of Croatia confirmed that after accession to the WTO, Croatia would
minimize the use of export duties and any such taxes applied would be in accordance with the
provisions of the WTO Agreement and published in the Official Gazette "Narodne Novine". Changes
in the application of such measures, their level and scope would also be published in the Official
Gazette "Narodne Novine".  The Working Party took note of this commitment.”
(c) Export Restrictions
Question 24.
We would appreciate confirmation in the Working Party report that all export quotas, bans,
and other forms of quantitative restrictions and restrictive export licensing has been eliminated
on 1 January 1999 as described in document WT/ACC/HRV/45, or replaced with WTO-
consistent forms of regulation. As necessary, please list the remaining quantitative export
restrictions by HS item number and outline Cr oatia’s plans for revising these restrictions.
Reply:
Croatia confirms that all export quotas, bans, and other forms of export restrictions and
restrictive export licensing were eliminated as of 1 January 1999, and proposes this confirmation to be
included in the Working Party Draft Report.WT/ACC/HRV/48
Page 18
3. Internal policies affecting foreign trade in goods
(a) Industrial policy, including subsidies
Question 25.
In a fully transparent manner Croatia is requested to provide information on subsidy
programmes and State aid in 1998 and 1999. The information provided should include thefollowing elements: - name of the subsidy or State aid programme; -legal basis; -policy
objectives and justification; -amounts disbursed; -beneficiaries; and –possible trade effects.
The information should include companies and en tities undergoing restructuring or those that
are the subject of privatization.
Reply:
The requested information on subsidy programmes and State aid will be submitted as soon as
possible, but in any case prior to May 1999.
(b) Technical Barriers to Trade, Sanitary and Phytosanitary Measures
Standards and certification
Question 26.
Our experts are reviewing the information you provi ded on these issues and the draft legislation
provided in early February. We appreciate “future tense” commitments to guarantee nationaltreatment, transparency, and MFN treatment in  the application of TBT and SPS measures. We
are not, however, in a position to take these a ssurances without review of the actual legislation
necessary to give them concrete effect. Broadly speaking, we do not believe that Croatia’s
quality certification system is WTO consistent (e.g., with Article III of the GATT and the
Agreement on TBT and SPS). We do not believe that a “reformed” quality control system willbe sufficient to remedy the problem if it still incorporates the same flawed concept of mandatory
quality requirements. We will also need to see the fee structure of any inspections carried out on
imports to meet these Requirements.
In addition, we have severe concerns about th e enforcement of current rules on trade entering
Croatia from the Bosnian Federation and the Serb Republic. Discriminatory standards andcertification treatment, whether vis-à-vis  domestic or imported goods, is a serious issue, and we
intend to pursue it vigorously. We reserve on these sections, pending review of the material
provided by Croatia in WT/ACC/HRV/45 and 46.
Reply:
After reviewing all comments, remarks and requests of the Working Party members on the
implementation of the Agreements on TBT and SPS in Croatia, we came to a conclusion that the main
problem that remained is mandatory quality control system as applied to the imported products. Otherissues related to the application of TBT and SPS measures in Croatian actual legislation and practice,
especially sanitary, phytosanitary, veterinary and pharmaceutical inspection, are seen to be consistent
with the WTO provisions.
Having those facts in mind, the Government of Croatia decided to make major changes in
legislation and practice of the quality control application. Therefore, the new legislation will beWT/ACC/HRV/48
Page 19
prepared, passed by the Parlament and enforced by June 1999. The new Law on State Inspectorate
will incorporate the following changes in relation to the present practice:
− quality control is performed in order to ensure consumers protection. The State Inspectorate
performs quality control of designated imported and domestic products on the wholesale andretailsale points in the market. Quality control of the imported items before customs clearance is
abolished. The State Inspectorate controls whether products on sale are covered by proper qualityconformity documentation issued by authorised institutions in Croatia or abroad, and whether
labeling and packaging requirements are met. The State Inspectorate is also entitled to control and
compare the ingredient content of the product on sale with its declared values by taking samples
for analyses.
− that control for the domestic products is performed either on production sites or on the wholesale
and retailsale points in the market.
− the Government is entitled to issue a regulation defining the list of items subject to the control of
documentation relevant to quality requirements conformity. The list will be shorter compared tothe list applied today.
− the Government is entitled to issue a regulation defining the fee structure of an inspection,
providing for the same level of fees for the inspection of imported and domestically produceditems, and abolishing the present practice of charging fees that vary in proportion with the
quantity inspected.
A draft of the new Law on State Inspectorate will be submitted for consideration of the
Working Party members not later than 30 April, 1999. Furthermore, by the same date we shall submita draft Government regulation on methods and procedures of issuing technical regulations prescribing
quality and health requirements as a referal point for SPS control of those items. By passing those two
pieces of legislation, the Croatian legal framework on TBT and SPS issues will be completed and
brought into conformity with TBT and SPS regulation before Croatia’s accession to the WTO, thus
ensuring its consistency with national treatment, MFN treatment, transparency requirements and other
provisions of the GATT 1994 and the Agreements on TBT and SPS.
Concerning remarks about the enforcement of rules on trade on the Croatian border with
Bosnia and Herzegovina we deem it appropriate to give a comprehensive explanation of the Croatian
views and deeds on that issue:
(i) Croatia admits that remarks and complaints on the border control and customs regime at the
border between the Republic of Croatia and Bosnia and Herzegovina might be attributed only to the
period of military operations in Croatia and Bosnia and Herzegovina from 1992 till 1995.
(ii) During the period after 1995, the Croatian Government has been taking many concrete steps
directed towards improving and enforcing strict border and customs regime on its border with Bosnia
and Herzegovina. These measures include:
− improving border crossing infrastructure and customs personnel training. By the end
of the year 1998, the Government has spent USD 7,3 million for the construction ofcustoms facilities on the border with Bosnia and Herzegovina and is planning to
spend additional budget resources for improving the remaining part of border
crossings.
− border crossing points have been determined in an agreement with Bosnia and
Herzegovina only in March 1996. The number of cargo border crossings has been
decreased to 20, and other border crossings are closed for cargo traffic and left forWT/ACC/HRV/48
Page 20
passenger traffic only. A Joint Commission determined the categorization of border
crossing points. On the both sides of the border 5 border crossings are equipped with
veterinary inspection on 24 hours basis, 3 border crossings are with sanitary
inspection, 6 border crossings with phytosanitary inspection and 6 border crossings
are exclusively designated for crossing of heavily taxed commodities. Any unbiasedinspection of the border crossing and customs procedure on the Croatian side of the
border with Bosnia and Herzegovina can confirm that at present there are no crossing
of cargo that would be intentionally unnoticed and unregistered by Croatian customs
authority, as well as no discriminatory customs, sanitary, phytosanitary and veterinary
treatment of goods originating in any third country compared to the goods originating
either in Croatia or in Bosnia and Herzegovina.
− the only difference is related to the customs tariffs applied for the goods originating in
the Federation of Bosnia and Herzegovina. According to the Agreement on Economic
Co-operation between the Government of the Republic of Croatia, and the
Governments of the Republic and Federation of Bosnia and Herzegovina, signed in
1995, the products originating in the Republic of Croatia or the Federation of Bosnia
and Herzegovina are entitled to preferential customs tariff treatment (only 1 per cent
customs registration fee is charged for all industrial and agriculture products). TheCertificate of Origin (EUR1) proves the origin of a product. For the goods originating
in the Republic of Srpska (Serb entity of Bosnia and Herzegovina) MFN tariff regular
and non-discriminatory customs, sanitary, phytosanitary, veterinary and transit
procedures are enforced.
− According to Article 12 of the Agreement, the Certificates of Origin are issued by
customs authorities of the Republic of Croatia, while in Bosnia and Herzegovina
those certificates are issued by the Chamber of Economy. The international practice is
that the competent state authorities issue the Certificate on Preferential Origin (EUR1)
thus enabling effective control and appropriate and prompt verification of the
document.  The state authorities have mechanisms and are equipped for such a control
while chambers of economy are not.
− The above mentioned caused the whole series of problems. To illustrate that, in the
course of 1996, 1997 and 1998 the Croatian Customs Authority has requested theverification of the Certificate of Origin from Bosnia and Herzegovina 150 times and
the Bosnian side requested it 80 times. The Croatian side received the Reply to only a
few requests, while the Croatian customs authority has promptly replied to almost all
requests.
− Citizens of both countries are entitled by the Agreement to exchange products in
parcels without proving origin or paying customs duty under condition that the value
of the parcel does not exceed 200 DEM. Also, the items belonging to personal
luggage are neither subject to origin certification nor payment of customs duty under
condition that their value does not exceed 500 DEM. This provision applies only to
the import of the products that are not intended for commercial purposes.
− After noticing possible frauds in issuing certificates of origin as well as from the
possibility that the citizens import goods in value of 200 and 500 DEM withoutpaying duties, which enabled wider scope of preferential customs duty treatment
under the Agreement on Economic Co-operation, the Croatian customs authorities
started to implement a strict control of the Agreement and border regime with Bosnia
and Herzegovina as from August 1998.WT/ACC/HRV/48
Page 21
− In December 1998, Croatian Government has proposed to the Council of Ministers of
Bosnia and Herzegovina to start negotiations on concluding a Free Trade Agreement,which will be valid for substantially all trade of products originating from the
Republic of Croatia and the whole territory of Bosnia and Herzegovina. The new FTA
would also envisage that the certificates of origin be issued by the customs authorities
of the Federation and Republic Srpska and not by Chambers of Economy in Bosniaand Herzegovina. The Government of Croatia expects the new FTA to be signed and
implemented before the Croatia’s accession to the WTO. In case that the new FTA is
not signed by the end of May 1999, Croatia shall terminate the application of the
Agreement on Economic Co-operation signed in 1995, that gives tariff preferences to
the products originating in the Federation of Bosnia and Herzegovina only. This
means that in that case Croatia shall acc ede to the WTO without any FTA with any of
the two entities in Bosnia and Herzegovina.
− Several meetings were held with the Government representatives at the level of
Federation and the Council of Ministers of Bosnia and Herzegovina, as well asbetween customs authorities, in order to improve co-operation and the exchange of
electronic information between the customs offices of Croatia and Bosnia and
Herzegovina.
− Meetings were held with the CAFAO representatives (EU customs aid program for
Bosnia and Herzegovina) in order to accelerate an official co-operation agreement
between customs administrations of Croatia and Bosnia and Herzegovina to be
signed .
− A program of computerization of the Croatian Customs Service is currently in
progress, with an aim of establishing a computer network of all border-crossing
points.
− Within the activities of the SECI (Project on Identifying Bottle-necks on Main
Transport Corridors), the Government of Croatia has officially stated its willingness
to candidate 12 border-crossings with the both entities in Bosnia and Herzegovina to
be reconstructed and equipped by using the World Bank financing.
(iii) All the above-mentioned activities enable us to declare that Croatian authorities have regained
full customs and security control of the border with Bosnia and Herzegovina, which is today at the
same level as the border and customs regime prevailing at other Croatian borders. Therefore, we cannot justify any claim that, at present, there might be intentional misconduct of the Croatian customs
authorities at the border with Bosnia and Herzegovina that would enable massive and uncontrolled
crossing of cargo. We do not see “soft border regime” to be a general issue today, but some concerns
might be directed to the implementation practice of the FTA granting preferential customs treatment
to goods originating in the Federation of Bosnia a nd Herzegovina. In that context, the only problem
might arise from the fact that flawed system of issuing certificate of origin in the Federation of Bosnia
and Herzegovina might widen customs preferential to unauthorized third country’s products. But
customs administrations of two countries are being developing an adequate system of checking
certificates of origin, which will be further developed under forthcoming agreement on customs co-
operation and a new FTA to be signed soon.
(iv) At present, Croatia is 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 are enforced, corresponds exactly to the territorial
boundaries of the Republic of Croatia. Today, the Croatian Government enforces and is determined to
enforce WTO provisions, rules and disciplines and terms of Croatia’s WTO accession package within
these boundaries, thus ensuring proper implementation of all WTO principles, in particular, theWT/ACC/HRV/48
Page 22
principle of uniform application of Croatia’s customs regime towards all countries according to the
MFN clause.
(v) Croatia’s determination to enforce proper customs regime on its border with Bosnia and
Herzegovina also stems from the necessity to introduce all possible measures in order to improve its
tax collection and diminish tax and customs duties evasion, which is an important element of thefiscal policy under the balanced budget conditions. At the same time, by so doing, Croatia is
honouring its international commitments related to the Washington and Dayton Agreements, as well
as other international commitments taken in the process of solving the crisis in Bosnia and
Herzegovina.
(vi) It is our feeling that on the Bosnian side of the border there was no similar activities that
might bring customs enforcement to the level already reached on the Croatian side of the border.
Having in mind that the border regime and customs enforcement are always bilateral issues whichcould be effectively implemented and improved only by common agreement and coordinated actions
of the both neighbouring countries, we urge international community, which is deeply involved in
regulating all aspects of administration in Bosnia and Herzegovina, to pay more attention to necessary
improvement of two existing customs administrations  in Bosnia and Herzegovina. That would be the
most efficient way to finally introduce a strict border and customs regime on both sides of the borderbetween Croatia and Bosnia and Herzegovina.
(e) State Trading Entities
Question 27.
We require time to reflect upon the informatio n provided by Croatia in the Working Party
report on its State owned firms and their trading activities. We are particularly struck by the
role played by State firms in the stockpiling and disposal of agricultural commodities. We
reserve on this section, pending further reflection.
(f) Free zones, Special Economic Areas
Question 28.
What are the provisions of the Law on Free Zone s vis-a-vis exports? Do firms locating in the
zones have to export any minimum portion of their output?
Reply:
Croatia will provide the English translation of the Law on Free Zones to the WTO Secretariat
as soon as possible.
According to the Law on Free Zones, companies located in the zones are not obliged to export
any minimum portion of their output.
(l) Government Procurement
Question 29
We applaud Croatia’s agreement to initiate negotiations to join the Government Procurement
Agreement. We prefer the designation of a date certain for the negotiations to terminate.WT/ACC/HRV/48
Page 23
Reply:
Croatia proposes a revision of this section in the Draft Report, to read as follows:
“The representative of Croatia confirmed that Croatia will initiate negotiations for
membership in the Agreement on Government Procurement immediately upon accession 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 membership
in the Agreement within 12 months of the date of WTO accession. The Working Party took note of
this commitment.”
(m) Transit
Question 30.
Croatia states in paragraph 127 that it is p repared to accept WTO requirements for transit
trade. Our information is that transit trade from the Bosnian Serb Republic is blocked by
Croatia. We would appreciate the views and assurances of Croatia on this point. We reserve on
this section pending review of this information.
Reply:
The Republic of Croatia has not blocked the transit trade from Bosnian Serb Republic. The
Republic of Croatia and Bosnia and Herzegovina are reconstructing bridges over river Sava (bordercrossing Slavonski Brod – Bosans ki Brod, Stara, Gradiška – Bosanska Gradiška, Hrvatska Dubica -
Bosanska Dubica). This causes the difficulties and closing of some border crossings. At the same time
other temporary border crossings have been organi zed, what enables transit. Freedom of transit is
assured by the Customs Law and International Agreements and the Republic of Croatia provides
assurances that it practices and shall practice free transit rights of Bosnian Serb Republic as well as ofall other countries, according to Article V of the GATT 1994.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
Question 31.
We support the commitment, but reserve on this section pending (a) review of legislation
provided by Croatia to implement TRIPS, and (b) demonstrated progress on Croatia’slegislative strategy.
Reply:  Pending
VI. TRADE-RELATED SERVICES REGIME
2. Policies Affecting Trade in Services
Question 32.
We ask Croatia to improve its commitments concerning professional services and allow
temporary admission of natural persons engaged in  the supply of a service as an employee of a
juridical person (whether it has or not a commercial presence), particularly in connection with
recreational activities and facilities.WT/ACC/HRV/48
Page 24
Reply:
The negotiations on commitments concerning professional services are part of bilateral
market access negotiations for trade in services. Therefore, Croatia declines the Member Country’s
notions to address this issue in a multilateral framework of its WTO accession process and proposes
to the Member Country to pursue the issue of tem porary admission of natural persons engaged in the
supply of services in bilateral market access negotiations rather than in a Working Party’s Report of
Croatia’s accession process to the WTO.
Transparency
Question 33.
Please indicate how Croatia addresses in law tran sparency provisions in Article X of the GATT,
in the WTO Agreement on Import Licensing Procedures, Technical Barriers to Trade,
Application of Sanitary and Phytosanitary Meas ures, and in the GATS are covered in Croatian
law.
Reply:
 The transparency of Croatian laws and other regulations is ensured through obligatory
publication of all laws and regulations in the Croatian Official Gazette. A Law grants that no measure
can be applied before it is published. A law enters into force 8 days after it is published in the OfficialGazette. All the amendments and changes in laws and regulations, including regulations concerning
import and export licensing procedure, technical barriers to trade, sanitary and phytosanitary
measures, are also published in Official Gazette to enable to all interested persons (companies) to get
acquainted with them. Furthermore, TBT measures, draft standards are published in the Office Journal
of the State Office for Standardization and Metrology allowing 30 days for comments and remarks ofthe public. Croatian competent authorities are drafting the regulation on methods and procedures of
issuing technical regulations prescribing quality and health requirements as a referral point for SPS
control of these item.
We can, further confirm that, at the latest from the date of accession, all laws and regulations
related to trade would be published in the Official Gazette "Narodne novine" promptly and no law orregulation related to international trade would b ecome effective prior to such publication. Croatia
would fully implement Article X of the GATT 1994 and the other transparency requirements in WTO
Agreements requiring notification and publication.
Croatia proposes the following commitment to  be included in the Working Party Draft
Report:
"The Representative of Croatia said that, at the latest upon entry into force of the Protocol of
Accession, Croatia would submit all initial notifications required by any Agreement constituting partof the WTO Agreement. Any regulations subsequently 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.
(c) Trade Agreements
We support the commitment, but reserve on this section pending clarification on the nature of
Croatia’s trade arrangements and border control with Bosnia and Herzegovina.
__________