WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/TPR/M/227/Add.1 
29 April 2010 
 (10-2309) 
Trade Policy Review Body 
24 and 26 March 2010 Original:  English/ 
 anglais/  inglés 
 
TRADE POLICY REVIEW 
CROATIA 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mr. István Major (Hungary) 
 This document contains the advance writte n questions, and replies provided by Croatia.1 
__________________________________________________________________________________ 
 
Organe d'examen des politiques commerciales 
24 et 26 mars 2010  
EXAMEN DES POLITIQUES COMMERCIALES 
CROATIE 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. István Major (Hongrie) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses fournies par la Croatie.
1 
__________________________________________________________________________________  Órgano de Examen de las Políticas Comerciales 24 y 26 de marzo de 2010  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
CROACIA 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. István Major (Hungría) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Croacia.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/227/Add.1 
 Page 3 
 
 
 QUESTIONS FROM BRAZIL  
Report by Croatia (WT/TPR/G/227)  
Question 1 In its Report, Croatia informs that the Ministry of the Economy, Labour and Entrepreneurship has 
extended its scope to include, inter alia, coordi nation and development of national policies in the 
fields of standardization, accreditation conformity  assessment and metrology.  What are the main 
areas of concern in Croatia's po licy in those fields?  What are their expected impacts on trade? 
Answer:
 
(Concerning Q. 1 and 3)  
In 2007 the Strategy for the Implementation of the acquis communautaire in the field of Free 
Movement of Goods was drawn up as a joint effort of  all state administration bodies, co-ordinated by 
the Ministry of the Economy, Labour and Entr epreneurship (MELE) and was adopted by the 
Government of Croatia in November 2007.  
The Strategy presents a framework for transposing all European technical regulations, but also reflects 
our priorities for further the development of the produc tion of industrial products and trade.  It's basic 
goal is, bearing in mind the final aim of acceding to full membership of the EU, to ensure that 
Croatian products are competitive on the European and other markets and, at the same time, to ensure 
the safety of all products which will have  free access to the Croatian market.  
In this regard, the Strategy envisages further st eps for strengthening the administrative capacities of 
the Directorate for Trade and the Internal Market  of the MELE, which is the principal authority 
responsible for policy development in the field of t echnical legislation, standardisation, conformity 
assessment, accreditation and metrology, and for the de velopment of partnership with all interested 
parties, first and foremost representatives of industr y, trade associations and independent institutions.  
The role of the Internal Market Co-ordination Depa rtment is to ensure a co mprehensive co-ordination 
policy, co-operation with the ministries and state administrative bodies – the State Office for Metrology, the State Inspectorate and the public sector – the Croatian Standards Institute and the 
Croatian Accreditation Agency, in a way to ensure  full transposition and implementation of both the 
New and the Old Approach Directives into the Croatian legal system and the provision of legal 
assistance in the adoption of technical requirements, to participate in the establishment and work of 
the organisations for quality infrastructure and to en sure co-ordination in the alignment of technical 
legislation. 
Pursuant to the Act on Amendments to the Ac t on the Structure and Scope of Central State 
Administrative Organisations (OG 27/08), which en tered into force in March 2008, MELE extended 
its scope to administrative and other activities pert aining to quality infrastructure, including the co-
ordination and development of the national policy in the field of standardisation, accreditation, 
conformity assessment and metrology.  In additi on, MELE also gained a co-ordinating function 
pertaining to the freedom to provide services, so that its role now is to affect the entire co-ordination 
policy, co-operation with ministries and the public  sector, and thus complete the transposition and 
implementation of directives relating to this area into the Croatian legal system.  
The main areas of concern in Croatia's policy regard ing Quality Infrastructure i.e. in the fields of 
standardization, accreditation conformity assessment a nd metrology are:  avoiding barriers to trade;  
improving access to harmonized standards; improving stakeholder access to the standards development process;  (the access of all relevant stakeholders  to the standards development process is WT/TPR/M/227/Add.1 
Page 4  
 
 considered important to ensure that stakeholde r groups are fully represented in introducing the 
WTO/TBT principles of standardization (transparenc y, openness, impartiality, consensus, efficiency, 
relevance and consistency) to be included in the standards development process alongside directive 
98/34/EC);  accelerating the standards developm ent process;  improving the effectiveness of 
standardization by embedding European and WTO/TBT principles and extending the range of 
"approved" Standards Developing Organisations stru cture and documents;  simplifying the interface 
and relationship between the Shareholders a nd the Standards Developing Organisations. 
In order to achieve these goals, it is necessary to set  up an efficient system of co-ordination between 
all bodies with a regulatory function which are competent for ensuring free movement of goods on the Croatian market.  
One of the more important activities of the Department is the participation in the work and 
organisation of all activities pertaining to training of businessmen and craftsmen, in co-operation with 
the Croatian Chamber of Economy and the Croatian Ch amber of Trades and Crafts, and their interest 
organisations competent for promoting a nd advocating interests of businessmen. 
The main objective of the Strategy for the Implementation of the acquis communautaire  in the field of 
Free Movement of Goods, and all of its planned measures, is to ensu re through the activities planned:  
the quality of Croatian products that will become competitive on the European market;  the quality of 
all products that come to the Croatian marke t;  to ensure efficacious accession and an equal 
participation of the Croatian Internal Market to an d in the Internal Market of the European Union, 
enhancing in that manner beneficial impact on trade. 
Has Croatia adopted or is planning to adopt en vironment-related standards?  What are their 
expected impacts on trade? 
Answer:
 
The national body responsible for environmental protection policy in Croatia is the Ministry of 
Environmental Protection, Physical Planning and Cons truction.  Croatia is a party to all multilateral 
environmental agreements and implem ents all internationally agreed environment-related standards.  
Furthermore, Croatia transposed the la rgest part of the EU environmental acquis  into its national 
legislation.  Accordingly, at the national level, besides the standards regulated by the Environmental 
Protection Act (OG 110/07), particular standards are stipulated by the specific regulations.  
We expect positive impacts of environmental standa rds on trade, as they will enable the export of 
Croatian goods and services to a wider market and block unfair competition, at the same time.  
QUESTIONS FROM INDIA  
SUMMARY OBSERVATIONS 
(1) The Economic Environment  Para 2
 
For 2009, real GDP growth rate is estimated at -5.2% largely as a result of the global economic 
downturn, while the fiscal deficit is predicted at  2.9% of GDP.  Moreover, Croatia still faces key 
problems, notably external vulnerability due to its high external current account deficit (6.1% of GDP 
estimated for 2009) and large stock of external debt (93.3% of GDP in 2009), while important 
disparities in regional development remain.  WT/TPR/M/227/Add.1 
 Page 5 
 
 
 1. We would appreciate Croatia to share w ith us fiscal and financial measures taken to 
ameliorate the vulnerable situation poi nted out in the Secretariat's Report. 
Answer:  
Regarding the fiscal policy, macroeconomic conditions  in 2009 led to a need for new measures aimed 
at ensuring the stability and liquidity of public fi nances.  The first 2009 budget revision was thus 
adopted in April 2009, reducing total revenues by 2.6 percenta ge points of GDP and total 
expenditures by 1.9 percentage points of GDP rela tive to the initial budget plan.  The second and third 
budget revisions were adopted in July, decreasing th e projected revenues by 1.9 percentage points of 
GDP and the projected expenditures by 0.5 percentage points of GDP relative to the previous plan.  
According to preliminary data and projections  for 2009, the overall general government budget 
deficit, i.e., net lending/borrowing will be higher than planned in the range between  
0.5-0.7 percentage points of GDP according to ESA 95.  
Moreover, aiming at creating additional room for th e financing of the private sector in the domestic 
financial market, the Government issued a eurobo nd after being absent from foreign financial markets 
for five years.  The first issue was in May, worth EUR 750 million and maturing in 2015, while the 
second issue was in November, worth USD 1.5 billion and with a 10-year maturity.  
These measures contributed to the stability of public  finances in 2009 in the circumstances of an 
economic crisis and created a starting point for impl ementation of the fiscal policy in the forthcoming 
period, aiming at ensuring system liquidity and creating the preconditions for economic recovery. 
In regard to all taken measures during 2009, and ha ving in mind existing challenges, at the beginning 
of 2010, the Government of Croatia prepared new guidelines for economic policy activities, i.e., 
measures planned and goals expected. 
Maintaining macroeconomic stability, fostering ec onomic development and st rengthening investment 
activities are steps which will be achieved through  measures comprised in programmes for economic 
recovery and development. 
For that purpose the Government prepared two m odels of financing:  Model "A" and Model "B" 
Model "A" 
According to Model "A" the state will actively par ticipate in co-financing bank's credit placements for 
working capital financing through Croatian Bank for Reconstruction and De velopment (HBOR) in 
proportion 40% HBOR:  60% commercial banks.  The goal is to assure sufficient liquidity to companies for overcoming difficulties in economy a nd eliminate negative effects of global economic 
and financial crisis.  As a prer equisite for implementation of th is model, the Council of Croatian 
National Bank has lowered the Reserve Requirement  Rate from 14% to 13%, and then funds in 
amount of HRK 2 billion were directed to HBOR in  a form of commercial banks' club credit.  The 
first auction for Model "A" was already successfully  held in amount of HRK 200 million.  16 bids 
form banks arrived for the auction in total amount  of HRK 357.15 million, and with regard to the 
criteria of offered interest margin, 6 banks that offere d the lowest interest margin were selected.  It is 
important to mention that the average interest rate by which these six banks will approve credits 
within this Model is 5.05%, therefore it moves fro m lowest 4.93% to 5.11% which is significantly 
lower than interest rates at which banks approved cr edits so far.  Considering that HRK 200 million of 
auction amount referred to HBOR's share in the cred it which is 40%, the total credit potential which is 
on disposal to the entrepreneurs after the first au ction is HRK 500 million.  Now the banks have to 
submit projects from their clients, entrepreneur s, to which those funds will be channelled. WT/TPR/M/227/Add.1 
Page 6  
 
 Model "B" 
According to Model "B" for which an auction w ill be held soon, the Government will establish 
guarantee fund through which it will assume part of  the risk coverage for new banks' credit 
placements.  Amount of the guarantee which the G overnment will approve within the guarantee fund 
is HRK 2 billion.  This means, through joint fo rces, at least HRK 4 billion could be channelled to 
entrepreneurs through this Model.  This Model is primarily intended for investment projects to ensure 
new investment and business cycle.  However, in th e structure credits could also include credits which 
are necessary for sustainability of investment in cluding financing part of the working capital and 
reprogramming credits that have been contracted after 1
st July 2008. 
During the global financial crisis Croatian Nati onal Bank (CNB) took several steps in order to 
preserve stability of the exchange rate and overall financial stability.  When the crisis started, 
depreciation pressures replaced the appreciation pressures that had previously been a common feature of the foreign exchange market.  CNB reacted by providing foreign currency liquidity and by 
tightening domestic currency liquidity.  In Octobe r 2008 central bank abolished the Marginal Reserve 
Requirement
2, thus releasing an approximate EUR 355 million and USD 129 million.  In 
November 2008, the CNB Council decided to reduce th e banks' reserve requirement rate from 17% to 
14%.  Furthermore, in January 2009, CNB increa sed the foreign exchange component of reserve 
requirement that is allocated in domestic currency from 50% to 75%.  In order to provide additional 
foreign currency liquidity in February 2009 the mini mum ratio of liquid foreign currency claims to 
foreign currency liabilities of banks was reduced from 28.5% to 20%, what resulted in freeing of EUR 
2.1 billion. 
All mentioned changes of monetary policy instrume nts have substantially improved foreign currency 
liquidity of banking system, achieving the total am ount of released funds worth EUR 3.8 billion.  
Besides changes in instruments, CNB also intervened at the fore ign exchange market by selling 
EUR 328 million in January and EUR 185 million in February 2009.  
Para 5  
To improve the business environment still inhibite d by several factors, notably difficulties in 
obtaining necessary licences, corruptio n and an inefficient public administration, the authorities have, 
inter alia , established the Trade and Investment Promotion Agency (APIU) and enacted the 
Investment Promotion Act. 
2. Has the establishment of the Trade and Invest ment Promotion Agency (APIU) and enactment 
of the Investment Promotion Act led to any qua litative and quantitative improvement in the business 
environment? 
Answer:  
Founding and activating Trade and Investment Prom otion Agency (hereinafter:  Agency) enabled 
improvement in macro and micro business environmen t.  Since the Agency's activation in 2005, 
beginning of 2006, various tools for business environm ent improvement were developed.  Besides the 
                                                      
2 Applied for the four years, the Decision on the Marginal Reserve Requirement was aimed at curbing 
strong foreign borrowing by banks, obliging them to deposit part of the funds borrowed abroad (initially 
24 percent and 15, 40 or 55 percent in the more recent period, depending on  the financing source) in a special 
account with the Croatian National Bank .  As a result, banks' interest in foreign borrowing waned and the 
amount of their external debt gra dually decreased, with the significan t amounts of banks' additional foreign 
exchange reserves accumulated with the central bank that  served as a source of liquidity under unfavourable 
circumstances.  WT/TPR/M/227/Add.1 
 Page 7 
 
 
 Agency's activation, new Inv estment Promotion Act (OG 138/2006) was a clear sign to the 
international public, that the na tional Government and Croatia are open towards investments. 
The Agency itself contributed in developing bus iness climate in various ways.  Its successful 
promotional activities brought Croatian investment pot entials closer together with international 
economic auditorium.  Quality of service provided and its promotional activities placed the Agency in 
World's Top 25 investment agencies.  The rating was conducted by the World Bank among the pool 
of 181 investment promotion agencies in th e world, where the Agency was rated 24th. 
On local and regional national level the improvements are far more visible.  The Agency is recognized 
as the central place for investment facilitation an d promotion.  Regional team was founded and 
coordinated by the Agency and it is comprised of  representatives of regional agencies.  Through the 
Regional team, the Agency implements continuous educational programs for investment facilitation 
and promotion, and business environment development. 
The Agency is also involved in business (industr ial) zones development which are founded and 
developed throughout Croatia.  For development of larger business zones defined for attracting huge 
capital investments, the intention is to apply for EU  structural funds for infrastructure development. 
Besides investment promotion, another focus of  the Agency is export promotion.  The export 
promotion is facilitated through various educationa l programs, international presentations and real 
case to case assistances to the actual producers trying to export their products and services.  The 
Agency accomplished significant results in its export facilitation activities. 
Enactment of new Investment Promotion Act (OG 138/06) has introduced several measures in 
comparison to the Investment Promotion Act (OG 73/00) in order to improve business and investor 
environment.  New investment incentive sch eme is focused on production process activity, 
establishment of technology and innovation centr es as well as investments into business support 
activities.  For the last to investment activities, it also ensures an increase in support for new job 
creation which is calculated on the basis of regi stered unemployment rate of the region (county) 
where the investment is taking place.  New Act makes no difference between domestic and foreign 
investors, in the mining of priority in granting of incentive measures and grants them equivalent 
treatment.  Investment incentives are now available even for existing companies, not strictly newly 
established ones.  Important change compared to the previous Act is also a significantly lower minimum threshold required for eligibility for in centive measures (from 4 mil HRK to 300.000 €).  
As a completely new measure, incentives for large investment projects - investment projects of 
significant economic interest were introduced, provi ding additional incentives for large investments in 
regions (counties) with registered unemployment rate exceeding 20%.  
It should also be mentioned that new Act on Inve stment Promotion defined all key provisions for 
complete alignment with " acquis communautaire " of the EU including the definition of eligible 
investment costs and maximum intensity of aid.  It  represents an instrument of regional development 
of Croatia, an instrument to increase regional co mpetitiveness as a main pillar of future overall 
economic development. 
3. Have any targets been set by the APIU to achieve some optimal business environment to 
infuse further confidence in investors and traders? 
Answer:
 
Improvements in business and investment environm ent are constant focus of the Agency.  In 
cooperation with the Ministry of the Economy, Labour and Entrepreneurship (MELE), the Agency WT/TPR/M/227/Add.1 
Page 8  
 
 formed a team of experts whose goal is to ma ke additional improvements of the Investment 
Promotion Act.  The Agency, in cooperation with the MELE and Croatian Chamber of Commerce 
prepares measures for internationalization of Croa tian companies and business clusters, and their 
presence on international fairs and business forums. 
In addition, the Agency was actively involved in to defining the new Aliens Act (OG 36/2009).  The 
objective was to ease the process of business visas appli cation for the citizens of India, Omar, Qatar, 
Saudi Arabia, etc.  Agency's suggestion was to acknowledge " Schengen states"  visas for citizens of 
the selected countries, thus enabling them to ente r Croatia without additional visas (without Croatian 
visas). 
(2) Institutional Framework 
Para 11
 
Some SOEs operate under de jure  monopoly or hold exclusive rights, including Croatian State 
Forests, Croatian Railways and Croatian Post, while recently privatized companies still operate as de 
facto  monopolies.  Indeed, despite that the electricity market was liberalized in July 2008, in practice 
the electricity company HEP remains the only supplier.   The gas market also has a single supplier in 
the oil and gas company INA. 
4. What are the road maps that Croatia has dr awn up to encourage competition by diluting or 
removing monopolistic nature of several of its SOEs? 
Answer:  
Privatization in Croatia is being carried out in accordance with the Privatization Act, adopted in 
March 1996 and decisions of the Government of Croatia.   
Public companies in the portfolio of Croatia w ill be privatized pursuant to decisions of the 
Government in the dynamics determined by the Govern ment itself.  The portfolio of Croatia contains 
21 public companies and two of them, INA and HT, were privatized pursuant to special acts.  In 
Croatia, further privatization of the remaining pub lic companies and enterpri ses already in the process 
of privatization will be carried out in accordance with the Privatization Act and decisions of the 
Government.  
When it comes to competition policy it should be poi nted out that Competition Act applies to all 
undertakings including state owned enterprises and undertakings in a dominant position.  If the 
Competition Authority establishes that this undertaking has breached Competition Act, the 
Competition Authority adopts the decision on  the abuse of dominant position from those 
undertakings.  Furthermore, the only existing m onopolies are natural monopolies in the sector of 
energy and rail transport.  In those sectors lib eralization process is enabled by legislation and 
liberalization plans but in practice there are no real  competitors while the prices are still lower than 
what the market prices would be.  Hence, the comp etitors still do not have real incentive to enter the 
market.  In the near future, it is expected to have  more competition in energy and rail transport sectors 
like it was already achieved in telecom and oil sector which are liberalized. 
Electrical energy and gas 
Since 2008, energy undertakings were obligated to  conclude contracts with the Croatian Energy 
Market Operator (HROTE) on regulating mutual relati ons in the electricity market, thus acquiring the 
right to participate in the electricity market.  In the area of trade in electric energy 16 licences have 
been issued for performing trade ac tivity in electric energy, meaning th at even companies not being in  WT/TPR/M/227/Add.1 
 Page 9 
 
 
 the ownership of HEP d.d. perform trade in electric energy.  In the area of electricity supply for the 
moment 5 licences have been issued and only the co mpany HEP Opskrba d.o.o. is active and is the 
only one who supplies consumers with the electric energy.  
The energy undertakings have fulfilled the pres cribed requirements and acquired the right to 
participate in the electricity market in Croatia.  Meanwhile, the procedure for submitting contractual 
schedules from market participants to HROTE, and th e preparation of the day ahead market plan and 
its submission to the Croatian TSO have been establis hed.  In electricity sector currently, the majority 
of market participants trade electricity across the borders of the Croatian power system.  As of 1 July 2008, the Croatian electricity market has b een fully opened, meaning that all customers have 
the right to choose their supplier.  Thus far, approximately 50,000 end customers (more than 120,000 
measurement points) have signed a contract with  a new supplier.  These customers consumed 
6,289 TWh of electricity in 2009, representing appr oximately 46 percent of the total consumption in 
Croatia.  This is an ongoing and currently very active process. 
With respect to gas, the liberalization of Croatia's market has been completed with the opening of the 
gas market as of 1 August 2008, thus fully implementing directive 2003/55/EC concerning common 
rules for the internal market in na tural gas.  However, there is only one gas route available in Croatia 
– through Slovenia (Rogatec).  The rights of the u se of the said capacities on the said route are hold by 
INA and no possibility exists for determining the other suppliers by cons truction of a new supply 
route, since INA should voluntarily surrender from th e capacities over which it currently has the right.  
The changes will occur upon connecting the Cr oatian and the Hungarian gas system, and 
correspondingly more possibilities' for import of gas in Croatia will be availabl e.  The construction of 
the gas pipeline between Croatia and Hungary is  in process, pending the completion by mid 2011, 
when the conditions for market competition in the gas sector of Croatia will be fully met. 
Railway Sector Former national Railways Company (HŽ), as well as whole railway sector is undergoing a major 
restructuring process.  All activities during past fe w years were determined by the implementation of 
the Croatian Railways Division Law. Assets and Li abilities Division Plan has been executed and 
finally in December 2006, the Commercial Court issu ed a registration for establishment of four new 
companies – legal successors;  HŽ-Infrastructure Ltd, HŽ-Passenger Transport Ltd, HŽ-Cargo Ltd and HŽ-Train Traction Ltd.  Under a decision by  the Croatian Government, HŽ-Holding Ltd was 
formed as a company for the coordination and implementation of the restructuring programme.  
The division of the former public company and furt her separation between infrastructure and transport 
operations allowed the implementation of the b asic market principles, which will enable the 
implementation of a new model of public financing as well.  Last year was also marked by the continuation of the restructuring process a nd further alignment with EU legislation. 
Postal Services As part of its efforts to harmonize with the EC le gislation on postal services, the Postal Services Act 
(OG No. 88/09) was adopted in July 2009.  This Ac t has already implemented most of the regulatory 
elements of the Third Postal Directive (Directive 2008/6/EC), in particular by laying down a detailed 
timetable for gradual market opening (full mark et opening envisaged for 31 December 2012).  
Also, the Postal Services Act introduced the we ight and price limit of the reserved area from 
1 January 2010, for the Croatian Post Inc. (HP) – the public postal operator, as required by Directive 
2002/39/EC (50 grams). 
 WT/TPR/M/227/Add.1 
Page 10  
 
 Forestry  
University of Zagreb, Faculty of Economics a nd Business has developed the Study on Business 
Management and Organizational Structuring of Croatia n Forests Ltd.  The abstract of the Study can 
be downloaded from:  http://portal.hrsume.hr/images /stories/restrukturiranje/studija_restrukturiranja. 
pdf.  
Changes that the Study provides a pply only to the business organization of Croatian Forests Ltd. as a 
company, and they do not refer to ownershi p on forests and other wooded lands and their 
management.  Currently, the Study is on public debate.  The final decision on the possible beginning 
and model of restructuring will be broug ht by the Government of Croatia.  
QUESTIONS FROM TURKEY
 
Report by Croatia (WT/TPR/G/227)  
(1) Economic Environment  (Page 6, Para 12)
 
The Government's report states that Croatia has un dertaken a series of economic policy measures to 
stop negative trends and to come back to the path of  progress.  Moreover, it is stated that a series of 
fiscal measures are undertaken to en sure the stability and liquidity of public finances.  A package of 
10 antirecession measures was therefor e adopted in February 2009. 
1. Please explain how influential and effective Croatia's fiscal and monetary measures are in 
fighting against the impact of the recent crisis? 
Answer:  
Regarding the fiscal policy, macroeconomic conditions  in 2009 led to a need for new measures aimed 
at ensuring the stability and liquidity of public fi nances.  The first 2009 budget revision was thus 
adopted in April 2009, reducing total revenues by 2.6 percenta ge points of GDP and total 
expenditures by 1.9 percentage points of GDP rela tive to the initial budget plan.  The second and third 
budget revisions were adopted in July, decreasing th e projected revenues by 1.9 percentage points of 
GDP and the projected expenditures by 0.5 percentage points of GDP relative to the previous plan.  
According to preliminary data and projections  for 2009, the overall general government budget 
deficit, i.e., net lending/borrowing will be higher than planned in the range between  
0.5 - 0.7 percentage points of GDP according to ESA 95.  
Moreover, aiming at creating additional room for th e financing of the private sector in the domestic 
financial market, the Government issued a eurobo nd after being absent from foreign financial markets 
for five years.  The first issue was in May, worth EUR 750 million and maturing in 2015, while the 
second issue was in November, worth USD 1.5 billion and with a 10-year maturity.  
These measures contributed to the stability of public  finances in 2009 in the circumstances of an 
economic crisis and created a starting point for impl ementation of the fiscal policy in the forthcoming 
period, aiming at ensuring system liquidity and creating the preconditions for economic recovery. 
In regard to all taken measures during 2009, and having in mind existing challenges, the Government 
of Croatia prepared new guidelines for economic pol icy activities, i.e., meas ures planned and goals 
expected.  WT/TPR/M/227/Add.1 
 Page 11 
 
 
 Maintaining macroeconomic stability, fostering ec onomic development and st rengthening investment 
activities are steps which will be achieved through  measures comprised in programmes for economic 
recovery and development. 
For that purpose the Government prepared two m odels of financing: M odel "A" and Model "B" 
Model "A" 
According to Model "A" the state will actively par ticipate in co-financing bank's credit placements for 
working capital financing through Croatian Bank for Reconstruction and De velopment (HBOR) in 
proportion 40% HBOR:  60% commercial banks.  The goal is to assure sufficient liquidity to companies for overcoming difficulties in economy a nd eliminate negative effects of global economic 
and financial crisis.  As a prer equisite for implementation of th is model, the Council of Croatian 
National Bank has lowered the Reserve Requirement  Rate from 14% to 13%, and then funds in 
amount of HRK 2 billion were directed to HBOR in  a form of commercial banks' club credit.  The 
first auction for Model "A" was already successfully  held in amount of HRK 200 million.  16 bids 
form banks arrived for the auction in total amount  of HRK 357.15 million, and with regard to the 
criteria of offered interest margin, 6 banks that offere d the lowest interest margin were selected.  It is 
important to mention that the average interest rate by which these six banks will approve credits 
within this Model is 5.05%, therefore it moves fro m lowest 4.93% to 5.11% which is significantly 
lower than interest rates at which banks approved cr edits so far.  Considering that HRK 200 million of 
auction amount referred to HBOR's share in the cred it which is 40%, the total credit potential which is 
on disposal to the entrepreneurs after the first au ction is HRK 500 million.  Now the banks have to 
submit projects from their clients, entrepreneur s, to which those funds will be channelled. 
Model "B" According to Model "B" for which an auction w ill be held soon, the Government will establish 
guarantee fund through which it will assume part of  the risk coverage for new banks' credit 
placements.  Amount of the guarantee which the G overnment will approve within the guarantee fund 
is HRK 2 billion.  This means, through joint fo rces, at least HRK 4 billion could be channelled to 
entrepreneurs through this Model.  This Model is primarily intended for investment projects to ensure 
new investment and business cycle.  However, in th e structure credits could also include credits which 
are necessary for sustainability of investment in cluding financing part of the working capital and 
reprogramming credits that have been contracted after 1
st July 2008. 
Croatia is a small, highly euroized and open eco nomy, whose main trading partners are in the 
Eurozone;  therefore a change in the exchange rate strongly affects movements in prices and 
inflationary expectations.  The term euroization re lates to the wide-spread use of euro as a store of 
value (bank's balance sheets are dominated by fo reign currency deposits which represent around 80% 
of all deposits) and a unit of account (prices for big purchases, like house or car, are expressed in 
euros).  Banks hedge exchange rate risk by exte nding loans indexed to foreign currency (around 70% 
of total placements), but this only transforms exch ange rate risk into credit risk, because most 
borrowers have only Kuna denominated income.  Th erefore, monetary policy is based on keeping a 
stable exchange rate of Kuna in relation to the eu ro, which allows the central bank to achieve its goal 
of maintaining price stability while taki ng into account financial stability.  
When at the end of 2008 the effects of the glob al financial crisis sp illed over onto the Croatian 
economy, intensifying the fall in economic activity and curbing foreign capital inflows, the central 
bank placed a greater focus on ensuring sufficient liquidi ty to finance domestic sectors, in addition to 
maintaining domestic currency stability.  When the crisis started, depreciation pressures replaced the 
appreciation pressures that had previously been a common feature of the foreign exchange market.  WT/TPR/M/227/Add.1 
Page 12  
 
 The CNB reacted by providing foreign currency liquidity and by tightening domestic currency 
liquidity.  By changing several monetary policy in struments foreign currency liquidity of the banking 
system was improved by releasing funds worth EUR 3.8 billion, while the CNB also intervened on the foreign exchange market in January and February 2009 (selling EUR 0.5 billion).  Banks used most of 
the released funds to satisfy the large financi ng needs of the central government.  Consequently, 
Croatia did not need to ask for the financial suppor t of the IMF, with the Government going to the 
international market to issue bonds in May and N ovember 2009.  Overall, the Kuna exchange rate 
versus the euro remained stable, reaching at the end of 2009 the same value as the end of the previous 
two years, while foreign exchange reserves have been on a rising path since the second quarter of 
2009.  
In order to support Government programmes for eco nomic recovery and deve lopment, CNB lowered 
the Reserve Requirement Rate (from 14% to 13%) in February 2010.  Ba nks channelled these funds 
(approx. EUR 0.3 billion) to the Croatian Bank for Reconstruction and Devel opment, which will use 
these them to co-finance (with a 40% share) bank' s credit placements to companies.  Since this 
programme has only started, it is too early to evaluate its effects.  
(Page 9, Para 23)
 
The Secretariat's Report st ates that one of the strategic goals of  Croatian Export Strategy is linking 
together companies in clusters to facilitate th eir appearance on foreign markets and to increase the 
exports. 
2. Please explain the expectations about the possible effects of the Strategy on the supported 
sectors, which are defined as water industry, sm all shipbuilding, wood and mariculture.  Could 
Croatia provide the reason of priorities for the selection of these four aforementioned clusters? 
Answer:  
As an open economy in the globalization processes, Croatia's main concern is to ensure that its 
enterprises remain competitive within the global a nd EU Single market.  The difficulties of export 
oriented sector to accomplish stronger presence in foreign markets are still present.  The reasons are 
related to its competitiveness, its ability to innovate but also to the fact that inflow of green-field 
foreign direct investments has been very low.  
Successful export promotion is one of the key el ements of economic development especially in 
transition countries. International activities reinfor ce the growth of enterprises, as they help them 
become more competitive.  For many entreprene urs national frontiers still represent a significant 
barrier to expanding their business, although the EU Single Market has made it easier than ever for 
small firms to do business in other EU Member States.  At the same time, the EU is also helping to 
open up opportunities for SME's beyond the Single Market.  Numerous studies demonstrate the direct link between internationalization and incr eased company's performance.  Pro-active 
internationalization reinforces growth, enhan ces competitiveness and supports the long term 
sustainability of companies.  In 2006 Croatian Govern ment made the strategic decision to set up more 
systematic and coherent support to  the internationalisation of Croatian economy.  Stronger presence in 
the EU Single and global market is both a challenge  and huge opportunity for Croatian companies.  
As a result of a broad dialogue with partner in stitutions, Croatian Chamber of Economy, Croatian 
Chamber of Trades and Crafts, Trade and Invest ment Promotion Agency, Croatian Employers' 
Association, Croatian Exporters, Croatian Bank for Reconstruction and develo pment and Ministry of 
Foreign Affairs and European Integration, Ministry  of the Economy, Labour and Entrepreneurship has 
launched a project "Croatian Export Offensive" the fi rst export strategy in January 2007.  With this 
strategic document, Government wishes to emphasi ze and strengthen the international presence of 
Croatian economy.  Based on the export strategy, the different activities and actions have been  WT/TPR/M/227/Add.1 
 Page 13 
 
 
 undertaken, financed partly by the national budge t through MELE and partly by IPA (support to 
cluster initiatives).  
The main goal of the export strategy is to solve the key problems related to  the internationalization 
strengthening, such as small capacities, fragmentatio n of production and low level of competitiveness 
in general.  Clusters are rec ognized as a tool for increasing the capacity and ability of SME's to 
achieve international competitiven ess.  Workshops which preceded the Strategy, defined 6 sectors 
with high export potential, which are suitable for ne tworking entrepreneurs in order to develop new 
products or create new global brand. Important emphasi s is given to the establishment of six clusters:  
water, small shipbuilding, textile-clothing, ICT solutions, wood-furniture and mariculture-Croatian 
fish.  Expected effects of the Strategy on the supported sectors are: optimisation of production 
processes, improving the competitiv eness at international level and increase exports in these sectors. 
Report by the Secretariat (WT/TPR/S/227)  
General Framework (Page 16, Para 14)
 
3. Could the Government of Croatia elaborate on the policy tools other than clustering to be 
used in "the Competitiveness Strengthening and In ternationalization Progr amme" launched in 2009? 
Answer:  
Based on the export strategy, The Competitiveness St rengthening and Interna tionalization Programme 
has been developed with the objective to increase  the level of internationalization of Croatian 
economy through strengthening the capacities of e xport oriented SME's in developing new and 
competitive products.  The program is a combin ation of six incentive  measures; three are 
implemented at the level of individual entrepre neurs and three at the level of association of 
entrepreneurs (clusters) during a joint ap pearance on the international markets.  
The program is implemented as a grant scheme w ith the following priorities:  establishment and 
incorporation of procedures for the testing and cer tification of Croatian products in order to ensure 
compliance with International Quality standards;   improvement of marketing, promotion and 
presentation of Croatian products on the new market s and organization of training for staff in 
technical, marketing and quality assurance department s in order to ensure that the companies have 
human resources able to meet and implement the requirements needed to enhance their 
competitiveness. 
Activities co-financed by this program are: particip ation in international trade fairs, marketing 
activities, branding and design, developing new produc t, adoption of technical and quality standards 
etc.  Eligibility of potential applicants:  to be  an export oriented company/be a registered SME 
according to the Croatian definition (micro enterpris es with less than 10 employees are not eligible);  
Be an export-oriented SME (at least 25% of the turn over in the previous fiscal year is gained from the 
exports);  and be fully privately owned;  be legall y registered as per Croatian legislation, be able to 
demonstrate a profit, solvency etc.  The supports  through these horizontal measures are in line with 
EU state aid rules for SME's.  
Regarding the activities of joint appearance on the international market, the support is given to 
network of companies (clusters) and in coope ration with Chamber of Economy and Trade and 
Investment Promotion Agency for the organisation of joint exhibitions of Croatian economy on trade 
fairs, organisation of trade missions and support to the organisation of representative offices of 
Croatian economy on target markets. WT/TPR/M/227/Add.1 
Page 14  
 
 Customs procedures and valuation 
(Page 27, Para. 12)
 
The Secretariat's Report states that:  "Croatia maintains references prices on ad hoc basis, but these 
are not official.  Croatia does not use simplified pr ocedures for the valuation of fresh fruits and 
vegetables."  
Could the Government of Croatia kindly prov ide more information on the following issues: 
4. For which products reference pri ces are maintained on ad hoc basis? 
Answer:  
Referent prices are used exclusively as help for customs officers during customs clearance i.e. as 
element of risk analysis when clearing particular  goods.  They are used at clearing used vehicles, 
agricultural machinery and working machines, vessels, fruit and vegetables and flowers.  If there is 
departure from referent prices and doubt in authentic ity of declared data, the customs officer will act 
pursuant to WTO Decision Regardin g Cases where Customs Administrations have Reasons to Doubt 
the Truth or Accuracy of the Declared Value – 6. 1. 
5. How these reference prices are determined  (average of all shipments, etc).? 
Answer:  
At clearing of used vehicles, agricultural mach inery and working machines and vessels different 
catalogues of average prices in Croa tia or in the market of the country of exporter are used.  At 
clearing of fruit, vegetables and flowers we use database of accepted transaction values for identical or similar goods.  We must underline that the above mentioned data are only indicator of risk analysis 
and in no way the method of determining customs value. 
6. Does the simplified procedure refer to "the g reen channel" as mentioned in the Secretariat's 
Report?  
Answer:
 
Croatia does not apply EU simplified procedure for certain perishable goods imported for commission 
sale (Community Customs Code article 36 (2) - Commission Regulation No. (EC) No 215/2006 of 
08.02.2006.) i.e. for that kind of goods common rules for determining customs value would be used 
(at the moment there is no import of perishable good for commission sale in Croatia). 
Free zones  
(Page 57, Para. 104-106)  
7. Could the Government of Croatia elaborate on  the status of the free zones, and the various 
concessions provided in these z ones once Croatia joins the EU?  
Answer:  
Free zones serve as an important instrument for th e fulfilment of the national development goals:  
international competitiveness, balanced regional development, sustainable economic and social  WT/TPR/M/227/Add.1 
 Page 15 
 
 
 development and growth.  According to the data of  2009, there were 13 active free zones in Croatia, 
in which 263 beneficiary companies are operating with 8 347 employees. 
In 2008, the emphasis is put on the improvement of  free zones functioning and legislative framework 
harmonization with the "acquis".  By adoption of the Act on the Amendments to the Free Zones Act 
(OG 85/08) and the Ordinance on the method of cal culation of realized investments and used 
investment aid and on the free zone user tax re lief eligibility (OG 122/08), a new legal framework 
regulating functioning of free zones has been established. 
Act on the Amendments to the Free Zones Act (OG 85/08) that has set out the framework for 
operations and practices in the zones, comple tely fulfilled its purpose in the meaning of 
transformation of prior system of operations and f unctioning in free zones to a new system which is 
completely harmonised with legislative framework  of the EU through the introduction of a new 
system of incentives regulated by the Investment  Promotion Act (OG138/06);  transitional solution 
regarding tax incentives for existing users of free zo nes which invested before the enactment of the 
afore mentioned Act and designed "phasing out" regime for existing users of the free zones 
(decreasing of tax incentives).  
Upon the accession to the EU, Croatia will have a possibility to negotiate with the European 
Commission all relevant issues regarding free zones. 
State trading, State owned enterprises and privatization 
(Page 60, Para 116)  
8. In light of the future accession of Croatia to the EU, Could the Government of Croatia 
provide more information on the future privatization plans of the state owned enterprises?  
Answer:  
Privatization in Croatia is being carried out in accordance with the Privatization Act, adopted in 
March 1996 and decisions of the Government of Croatia.   
Public companies in the portfolio of Croatia w ill be privatized pursuant to decisions of the 
Government in the dynamics determined by the Govern ment itself.  The portfolio of Croatia contains 
21 public companies and two of them, INA and HT, were privatized pursuant to special acts.  In 
Croatia, further privatization of the remaining pub lic companies and enterpri ses already in the process 
of privatization will be carried out in accordance with the Privatization Act and decisions of the 
Government.  
According to the Croatian Privatization Fund, desp ite of great number of sale transactions (Stock 
Market and Public Invitations to Tender) due to co ntinuous cancellations of sale's agreements with 
"small shareholders" (Art 31 of the Privatization Act,) but also due to the fact that the privatization is 
done in share blocks, the number of companies in state portfolio is slowly decreasing. 
As on March 15, 2010 there are still 782 companies in the state portfolio.  It needs to be mentioned 
that this number is constantly changing, almost daily, due to the following grounds:  cancellation of 
sales agreements with so called "small shareholders";  cancellation of sales agreements with investors;  
allocation of free shares to war veterans;  cancellation of so called "reservations";  sales;  capital 
injections;  changes in company statuses a nd adjustment with the Company Law etc.  
According to the shareholding held by the state in the share capital of companies, the state portfolio 
can be divided as follows (data on March 15, 2010): WT/TPR/M/227/Add.1 
Page 16  
 
 Description Number of 
companies Total share capital 
(KN) Value of the total state 
portfolio (KN) Value of the 
portfolio held by 
the CPF (KN) 
Share held by the state 
below 24,99% share 
capital 632 40,999,074,262 2,777, 232,146 2,349,062,316 
Share held by the state 
from 25,00 – 49,99% 
share capital 69 2,897,601,900 951,241,137 477,544,383 
Share held by the state 
from 50,00 – 100,00% 
share capital 81 15,630,727,482 12,319, 901,731 4,884,587,091 
Total 782 59,527,403,644 16, 048,375,014 7,711,193,790 
Analyzing the state portfolio it can be concluded that more important are the companies where the 
state portfolio exceeds 50% in the sh are capital.  From the total of 782 companies in state portfolio, 
the state is a majority owner in only 81 companies.  In the remaining companies the share portfolio is 
below 50% of the share capital and these compani es are therefore less interesting to potential 
investors.  In majority of companies (more then  80% of the state portfolio) the state has a minor 
shareholding (below 25%).  
In majority ownership of the state left are only companies with many inherited problems which are 
currently being resolved partly and slowly thro ugh the programs adopted by the Government of 
Croatia (agreements with creditors in compliance with the Law, financial consolidations at the 
proposal of competent ministries, etc.).  The privatization of these companies will require a special attention and specific approach in defining the terms of the tender.  There are currently no agricultural 
combines in majority state portfolio.  
Considering the numerous problems connected with the remaining companies in the state portfolio, 
which make it harder and even impossible to privati ze, it is difficult to precisely define the plan for 
future privatization.  However, what can be said is  that it is the policy of the Government of Croatia, 
to proceed with the privatization of all comp anies from the state portfolio which meet the 
requirements, urgently and without delays. 
Except the privatization of companies from majority state portfolio, the Croatian Privatization Fund is 
in charge of the sale of affiliated companies (da ughter companies) from the portfolio of the Croatian 
Railways (HŽ).  The sale of affiliated companies fro m the portfolio of the HŽ is implemented in 
accordance with individually concluded agreements w ith HŽ and the HŽ are authorized to determine 
the starting price and mandatory terms of the public invitation to tender.  The last tender for the sale 
of affiliated companies from the portfolio of HŽ w as made public in February 2009 when the HŽ last 
provided the documents for tendering. 
On March 15, 2010 we have total of 9 tenders fo r companies from the majority state portfolio, as 
follows:  "ZRC Lipik" d.d. Lipik – deadline for bid submission April 1, 2010;  "Bizova čke toplice" 
d.d. Bizovac – deadline for bid submission April 7, 2010;  "Meiso" d.d. Gori čan – deadline for bid 
submission April 16, 2010;  "Brodogra đevna industrija 3. Maj" d. d. Rijeka;  "Brodogradilište 
Kraljevica" d.d. Kraljevica;  "Brodogra đevna industrija Split" d.d. Split ;  "Brodotrogir" d.d. Trogir;  
"Uljanik" d.d. Pula and "Brodosplit - Brodogradilište specijalnih objekata" d.o.o. Split.  The deadline 
for submission of bids for all of the shipyards is April 19, 2010.  WT/TPR/M/227/Add.1 
 Page 17 
 
 
 9. The future ideas and plans to address de fa cto monopolistic status of some of these 
enterprises? 
Answer:  
The only existing monopolies are natural monopolies in the sector of energy and rail transport.  In 
those sectors liberalization process is enabled by le gislation and liberalization plans but in practice 
there are no real competitors while the prices are st ill lower than what the market prices would be.  
Hence, the competitors still do not have real incentiv e to enter the market.  In the near future, it is 
expected to have more competition in energy and ra il transport sectors like it was already achieved in 
telecom and oil sector which are liberalized. 
Electrical energy and gas  
Since 2008, energy undertakings were obligated to  conclude contracts with the Croatian Energy 
Market Operator (HROTE) on regulating mutual relati ons in the electricity market, thus acquiring the 
right to participate in the electricity market.  In the area of trade in electric energy 16 licences have 
been issued for performing trade ac tivity in electric energy, meaning th at even companies not being in 
the ownership of HEP d.d. perform trade in electric energy.  In the area of electricity supply for the 
moment 5 licences have been issued and only the co mpany HEP Opskrba d.o.o. is active and is the 
only one who supplies consumers with the electric energy.  
The energy undertakings have fulfilled the pres cribed requirements and acquired the right to 
participate in the electricity market in Croatia.  Meanwhile, the procedure for submitting contractual 
schedules from market participants to HROTE, and th e preparation of the day ahead market plan and 
its submission to the Croatian TSO have been establis hed.  In electricity sector currently, the majority 
of market participants trade electricity across the borders of the Croatian power system.  As of 
1 July 2008, the Croatian electricity market has b een fully opened, meaning that all customers have 
the right to choose their supplier.  Thus far, approximately 50,000 end customers (more than 120,000 measurement points) have signed a contract with  a new supplier.  These customers consumed 
6,289 TWh of electricity in 2009, representing a pproximately 46% of the total consumption in 
Croatia.  
With respect to gas only one gas route is availa ble in Croatia – through Slovenia (Rogatec).  The 
rights of the use of the said capacities on the said route are hold by INA and no possibility exists for determining the other suppliers by the construc tion of the new supply route, since INA should 
voluntarily surrender from the capacities over which it cu rrently has the right.  The changes will occur 
upon connecting of Croatian and Hungarian gas system, correspondingly more possibilities' for 
import of gas in Croatia will be available.  The construction of the gas pipeline between Croatia and 
Hungary is in process, pending the completion by mid 2011, when the conditions for market competition in the gas sector of Croatia will be fully met. 
Railway Sector
 
Former national Railways Company (HŽ), as well as whole railway sector is undergoing a major 
restructuring process.  All activities during past fe w years were determined by the implementation of 
the Croatian Railways Division Law.  Assets and Liabilities Division Plan has been executed and 
finally in December 2006, the Commercial Court issu ed a registration for establishment of four new 
companies – legal successors;  HŽ-Infrastructure Ltd, HŽ-Passenger Transport Ltd, HŽ-Cargo Ltd and HŽ-Train Traction Ltd.  Under a decision by  the Croatian Government, HŽ-Holding Ltd was 
formed as a company for the coordination and implementation of the restructuring programme.  WT/TPR/M/227/Add.1 
Page 18  
 
 The division of the former public company and furt her separation between infrastructure and transport 
operations allowed the implementation of the b asic market principles, which will enable the 
implementation of a new model of public financing as well.  Last year was also marked by the continuation of the restructuring process a nd further alignment with EU legislation. 
Postal Services
 
As part of its efforts to harmonize with EC legi slation on postal services, the Postal Services Act 
(OG No. 88/09) was adopted in July 2009.  This Ac t has already implemented most of the regulatory 
elements of the Third Postal Directive (Directive 2008/6/EC), in particular by laying down a detailed 
timetable for gradual market opening (full mark et opening envisaged for 31 December 2012).  
Also, the Postal Services Act introduced the we ight and price limit of the reserved area from 
1 January 2010, for the Croatian Post Inc. (HP) – the public postal operator, as required by Directive 
2002/39/EC (50 grams). 
Forestry  
University of Zagreb, Faculty of Economics a nd Business has developed the Study on Business 
Management and Organizational Structuring of Croatia n Forests Ltd.  The abstract of the Study can 
be downloaded from:  http://portal.hrsume.hr/ima ges/stories/restrukturiranje/studija_restrukturi  
ranja.pdf .  
Changes that the Study provides a pply only to the business organization of Croatian Forests Ltd. as a 
company, and they do not refer to ownershi p on forests and other wooded lands and their 
management.  Currently, the Study is on public debate.  The final decision on the possible beginning 
and model of restructuring will be broug ht by the Government of Croatia.  
Transport (Page. 90, Para 64)
 
The Secretariat's Report mentions that "Croatia fo resees investment in transport of 5% of GDP … 
during 1998-2010 … ". 
10. Could the Government of Croatia clarify the major investments made in this sector?  
Answer:  
The transport network development has a function to integrate the area of Croatia and connect it to the 
integral transport area of Europe.  Considering the geographic shape of Croatia and its position, main 
transport routes passing through Croatia connect the area of Central Europe with the Mediterranean 
and South East Europe.  
For this reason, Croatia has adopted several documen ts relevant for the deve lopment of its transport 
infrastructure, such as the following ones adopted  by the Croatian parliament:  the Strategy on 
Physical Planning of the Republic of Croatia ( 1997) and the Strategy of Transport Development 
(1999);  whereas the Government of Croatia has adopted the National Strategy for the IPSA (Instrument for Structural Polici es for Pre-accession) Programme in the Transport Sector (2005).  In 
addition, the Operation Programme of the trans port sector for the period from 2007-13 was adopted 
by the Government of Croatia in 2007.  WT/TPR/M/227/Add.1 
 Page 19 
 
 
 Investments in the transport sector have been main ly oriented towards the development of the road 
transport infrastructure during 1998-2010.  In the last few years Croatia experienced a period of intensive construction of modern motorways across its entire territory.  By the beginning of 2010 the 
total length of the motorway network in Croatia has been 1.246 km (in 1998 the total length of the 
motorway network was 417.6 km). 
In the field of rail transport during 1998-2010 in vestment activities were intensified and mainly 
focused on the modernization and reconstruction of  the deteriorated railway infrastructure on the 
railway lines that are significant for the international transport.  In that context, investments were 
carried out systematically along the whole length of the branch of the Pan European corridor Vc and 
the railway line Oštarije – Knin – Split, and partia lly on the branch of the Pan European corridor Vb 
and on the Pan European corridor X. 
In the field of inland waterways, the recovery of the waterway marking system has been carried out.  
Investments also concerned the technical maintenan ce and recovery of waterways.  In parallel, the 
navigation safety has been continuously increased.  The system of River Information Service (RIS) 
has been developed.  Firstly, RIS has been intr oduced and installed on the Danube and Drava rivers, 
then on the Sava River where such system has not been fully completed yet.  Since 2004 more 
significant investments started in modernisation of the port infrastructure, in the following 
international ports:  Vukovar (Danube), Osije k (Drava), Slavonski Brod and Osijek (Sava). 
In the field of air transport, Croatia, as a majority  stake holder, ensures financial means for financing 
of safety and security equipment a nd various construction projects on the infrastructure of the airports 
of special importance regarding safety and security of  air transport.  These investments have a goal of 
maintaining a high level of safety, regularity and effi ciency of air transport.  These investments cover 
financing of safety and security equipment, comp ensation for participation in the National Aviation 
Security Committee and special expenses related to acci dent and incident investigations.  The airports 
covered by this investment programme are Zagreb , Split, Dubrovnik, Zadar, Pula, Rijeka, Osijek, 
Brač and Mali Lošinj as well. 
In the course of previous years, the transport netw ork of Croatia has been developing at a great speed, 
although that development has, until now, primarily been oriented towards the construction of road 
infrastructure.  However, according to availabl e data, and estimations done for the purposes of 
accession process, peak investment to transport (m ainly roads) has been reached in 2003-04 when 
about 3.5 % GDP was addressed to road construction.  Since 2008 the rate of investment to transport 
infrastructure has been starting to decrease, so that for 2010 it will hardly reach 2% GDP. 
Results of high investment into road network in  2002-08 are a developed network of motorways in 
Croatia, but significant difficulties in railways. 
ADDITIONAL QUESTIONS FROM TURKEY
 
Report by the Secretariat - WT/TPR/S/227  
SUMMARY OBSERVATIONS 
(Para 11)  
"... while recently privatized companies still operate as de facto  monopolies.  Indeed, despite that the 
electricity market was liberalized in July 2008, in practice the electricity company HEP remains the 
only supplier.  The gas market also has a si ngle supplier in the oil and gas company INA. WT/TPR/M/227/Add.1 
Page 20  
 
 1. Could Government of Croatia explain w hat the reasons behind that result are? 
Answer:
 
Electrical energy and gas  
Since 2008, energy undertakings were obligated to  conclude contracts with the Croatian Energy 
Market Operator (HROTE) on regulating mutual relati ons in the electricity market, thus acquiring the 
right to participate in the electricity market.  In the area of trade in electric energy 16 licences have 
been issued for performing trade ac tivity in electric energy, meaning th at even companies not being in 
the ownership of HEP d.d. perform trade in electric energy.  In the area of electricity supply for the 
moment 5 licences have been issued and only the co mpany HEP Opskrba d.o.o. is active and is the 
only one who supplies consumers with the electric energy.  
The energy undertakings have fulfilled the pres cribed requirements and acquired the right to 
participate in the electricity market in the Re public of Croatia.  Meanwhile, the procedure for 
submitting contractual schedules from market participan ts to HROTE, and the preparation of the day 
ahead market plan and its submission to the Croatian TSO have been established.  In electricity sector 
currently, the majority of market pa rticipants trade electricity across the borders of the Croatian power 
system.  As of 1 July 2008, the Croatian electric ity market has been fully opened, meaning that all 
customers have the right to choose their supplier.   Thus far, approximately 50,000 end customers 
(more than 120,000 measurement points) have signe d a contract with a new supplier.  These 
customers consumed 6,289 TWh of electricity in 2009, representing approximately 46% of the total 
consumption in Croatia.  This is an ongoing and currently very active process. 
With respect to gas only one gas route is availa ble in Croatia – through Slovenia (Rogatec).  The 
rights of the use of the said capacities on the said route are hold by INA and no possibility exists for 
determining the other suppliers by the construc tion of the new supply route, since INA should 
voluntarily surrender from the capacities over which it cu rrently has the right.  The changes will occur 
upon connecting of Croatian and Hungarian gas system, correspondingly more possibilities" for 
import of gas in the Republic of Croatia will be available.  The construction of the gas pipeline 
between the Republic of Croatia and Hungary is in process, pending the completion by mid 2011, 
when the conditions for market competition in the gas sector of Croatia will be fully met. 
(Para 19)  
Under the GATS, Croatia scheduled extensive sp ecific commitments, although generally do not 
reflect the applied regime, which is more liberal. 
2. Could Government of Croatia expla in the main concerns behind this? 
Answer:  
By acceding to the WTO, Croatia undertook comprehe nsive and extensive commitments on trade in 
services.  A Croatian Schedule of Specific Commitments on Services, as a result of the accession process, shows a very large number of sectors and sub-sectors included and also high level of undertaken commitments. In figures, 11 sectors and 122 sub-sectors are included which represent 
almost 80% of total, including all major sector s and sub-sectors.  The level of undertaken 
commitments is generally higher then the leve l of commitments undertaken by founding WTO 
members and in particular by WTO members at comparable level of development. 
As an example, we can emphasize that Croatian Electronic Communication Act, related ordinances 
and relevant electronic communication markets are fully in line with European Regulatory  WT/TPR/M/227/Add.1 
 Page 21 
 
 
 Framework and European Directives.  Process of liberalisation started couple of years ago and 
currently on Croatian markets operate 9 fixed opera tors and 3 mobile operato rs.  Incumbent operator 
or any other operator do not have any exclusive right s which mean that Croatian market is completely 
open market where all operators have the possibility to  enter into the market and start to provide any 
type of services.  
(Para 35)  
Croatia has been implementing a major privatizati on programme of state-owned enterprises (SOEs) 
since early 1990s, as part of its transition into a ma rket-oriented economy.  As a result, the private 
sector share in output and employment is estimated to  have risen to slightly above or close to 70%, 
respectively.  Nonetheless, by 30 June 2009, there were still 835 SO Es (down from 2,825 in 
May 1999), with the State keeping a majority hol ding in 85 of them.  Moreover, some important 
SOEs, notably the shipyards and Croatian Railway s, still run losses with consequent budgetary 
transfers.  As a result, these SOEs and others ar e in the process of being restructured as a precondition 
for their privatization. 
3. Could the Government of Croatia prov ide a timetable regarding the completion of 
privatization of those SOEs? 
Answer:  
Pursuant to the Privatization Act, the Governme nt and the authorized institutions carry out the 
privatization plan.  Time schedule of the privatiza tion accomplishment is hardly definable.  Relatively 
unsatisfactory dynamics of the sale of the compan ies in the majority ownership of the Croatian 
Privatization Fund (CPF) is the result of a demanding structure of the remaining portfolio (currently 
dominated by debt-strapped companies or companies burdened by high losses);  therefore the attempt 
to find a strategic partner is a long-term process and as a rule is accomplished in a few phases prior to 
bankruptcy or liquidation.  
According to the adopted Strategic Development Framework for 2006-13, the main goals in the area 
of privatization remain the accomplishment of priva tization of the companies from the state's portfolio 
managed by the Croatian Privatization Fund (C PF) with the exit from the market of hopeless 
companies and an adequate social security plan through the institutions of labour market and social 
policy, accomplishment of the privatization process in the shipbuilding industry in the course of 2010 (the international call for public tender is unde rway) and transformation of a few institutions 
managing state property in a single institution that w ill efficiently and actively manage state property.  
(Para 39)
 
As a result of several mergers and acquisitions and of bankruptcy, the number of commercial banks 
operating in Croatia dropped from 43 in 2000 to  33 in 2008 (16 foreign-owned, 15 private 
domestically owned and two state-owned).  In additi on, there are five building societies, two savings 
banks, and the state-owned Croatian Bank for Rec onstruction and Developmen t (HBOR).  The legal 
reserve ratio is uniform and is set at 14%.  Banki ng concentration in Croatia is high, with the five 
biggest banks holding about 72.3% of total assets.  Overall, foreign-owned ba nks held 90.6% of total 
banking assets at end 2008, up from about 84.1% in 2000. WT/TPR/M/227/Add.1 
Page 22  
 
 4. At footnote number 49 on page 84, the Secretar iat0s Report mentions "Savings banks are not 
allowed to operate or establish branches or represe ntative offices outside Croatia (Article 313.3 of 
the Credit Institutions Act)".  Could the Government  of Croatia explain the main reason behind this 
regulation and if it is consistent with the EU Directives? 
Answer:
 
With respect to savings banks, Croatia has exercised  discretion provided in the Article 9.2 of the CRD 
(Capital Requirement Directive) to allow them to operate with amount of capital lower than 
5 mil euro (capital required is 8 mil.  Kuna which is  equivalent of 1 mil euro).  That discretion is 
allowed to particular type of credit institutions w ith limited scope of activities - one of which in the 
case of savings banks licensed in Croatia is the prohibition to operate outside Croatia. 
(Para 54)  
Croatia's telecommunications and postal services, regulated by the Ministry of the Sea, Transport and 
Infrastructure (MSTI), are undergoing a liberalization process.  The most important change regarding 
fixed telephony has been the end of the monopoly of Croatian Telecom (HT).  During the second quarter of 2005, the first alternative operator star ted operating commercially, building its subscribers' 
base on the carrier pre-selection service (CPS).  Liberalization of services in fixed electronic 
communications network has resulted in higher mark et competition (there are currently 11 operators) 
and, in turn, lower tariffs.  Nonetheless, HT c ontinues to dominate the fixed phone market with 
77.65% of subscribers in December 2008. 
5. Could Government of Croatia explain the ma in reason of HT's dominant position in the 
market? 
Answer:
 
The main reason of HT's dominant position in the ma rket is that HT is the successor of the former 
state owned public telephone company (incumbent), which is the case in all European countries.  
According to the Croatian Electronic Communications Act, Croatian Agency for Post and Electronic 
Communications (HAKOM), which is national regula tory authority in electronic communications 
sector, can designate operators with significant market  power on the relevant market and according to 
that, regulate these operators.  In last few years,  from the beginning of the liberalization process, 
HAKOM has performed number of market analysis of  different markets and concluded that HT has 
position of significant market power (SMP), i.e. dominant position, on these markets.  According to these analyses, HT became subject of the regulation and HAKOM imposed number of regulatory obligations to prevent HT of using the status of si gnificant market power.  All the market analysis and 
regulation of the HT is performed in line with EU  regulatory framework in electronic communications 
sector and Competition Law practice. 
(Para 78)
 
Although Croatia exceeds the EU average regardi ng the length of the railway network per 100,000 
inhabitants, only 9% of Croatian railways have b een fitted with double tracks, and only 36% of the 
total has been electrified, placing Croatia behind other central and eastern European countries.  
Following the break-up of the Former Yugoslavia, there has been minimal investment in railway 
infrastructure;  coupled with the serious damage in flicted on the railway sector as a result of the war, 
this has contributed to the fall in traffic on the ra ilways since independence.  As a result, in 2000, the 
Parliament adopted the strategy on restructuring and modernization of  HŽ, the state-owned national 
railways company.  Through assistance from the World Bank, Croatia embarked on the Railway 
Modernization and Restructuring Project of HŽ with the aim of making it competitive, and  WT/TPR/M/227/Add.1 
 Page 23 
 
 
 diminishing its deficit and the fi nancial burden on the budget.  HŽ w as divided into five independent 
companies; privatization is to be the final stage of the railway reform (Chapter III(3)(ii)). 
6. Could Government of Croatia provide a tim etable for privatization of the state-owned 
national railways company HZ? 
Answer:  
Former national Railways Company (HŽ), as well as whole railway sector is undergoing a major 
restructuring process.  All activities during past fe w years were determined by the implementation of 
the Croatian Railways Division Law.  Assets and Liabilities Division Plan has been executed and 
finally in December 2006, the Commercial Court issu ed a registration for establishment of four new 
companies – legal successors; HŽ-Infrastructure Lt d, HŽ-Passenger Transport Ltd, HŽ-Cargo Ltd and 
HŽ-Train Traction Ltd.  Under a decision by th e Croatian Government, HŽ-Holding Ltd was formed 
as a company for the coordination and implementation of the restructuring programme.  
The division of the former public company and furt her separation between infrastructure and transport 
operations allowed the implementation of the b asic market principles, which will enable the 
implementation of a new model of public financing as well.  Last year was also marked by the 
continuation of the restructuring process a nd further alignment with EU legislation. 
The privatization plan is conducting according to th e World bank PAL arrangement of privatization of 
non core business.  
Currently is ongoing process of privatization for da ughter companies (subsidiaries), in cooperation of 
Croatian Privatization Fund and HŽ-Holding.  Tend ers were issued for five subsidiaries, but not 
successfully.  Due to unsolved issue of status of assets in public domain and lack of inters from 
private sector, the process of privatization is not progressing in satisfactory manner. 
(Para 87)  
The accounting profession is not regul ated in Croatia therefore there are no certification requirements 
for accountants.  Auditors, on the other hand, require  certification, which is regulated by the Audit 
Act (OG 146/05, 139/08) and implemented by the Croatian Chamber of Auditors.  
7. Since the accounting profession is not regul ated, could the Government of Croatia explain 
whether it is experiencing any problems while supervising the accountants and protecting the investors' and consumers' rights? 
Answer:
 
According to the provisions of the Accounting Act, Ministry of Finance – Tax Administration is 
responsible for general supervision of all accounting activities of entr epreneurs (this also reefers to 
any accountant company or an accountant organised as a sole trader).  
Croatian National Bank and Croatian Financial Services Supervisory Agency, by special regulations, 
are authorized to perform supervision of all credit and financial institutions. WT/TPR/M/227/Add.1 
Page 24  
 
 QUESTIONS FROM THE UNITED STATES
 
Report by CROATIA - WT/TPR/G/227  
(Page 12, Para 36)  
The Government states:  "Croatia has entered into the final stage of its accession negotiations with the 
EU. Negotiating Chapter 30 – External relations c overs, inter alia, trade policy including the EU 
relations within the framework of the WTO.  Negotiations with the EU on this Chapter were 
temporarily closed in the Intergovernmental Conference held in Brussels on 30 October 2008."  As part of Croatia's overall accession negotiations with  the EU, could the Government please answer the 
following questions: 
1. To what extent has Croatia adopted or har monized with European Union (EU) technical 
regulations that affect imports and sanitary and phytosanitary regulations?  How have Codex, OIE 
and IPPC standards been taken into account? 
Answer:
 
Croatia recognizes legislation and international obligati ons of EU in the phytosanitary area that affect 
import.  Croatia is harmonised with EU phytosanita ry regulations and IPPC standards which are part 
of EU legislation have been adopted and transposed into the national legislation. 
Croatia has harmonized its legislation with the EU te chnical regulations that a ffect imports of animals 
and products of animal origin.  OIE and Codex Alimentarius are taken into account in view of 
harmonization with and implementation of EU legisl ation.  Guidelines of OIE and Codex are used 
when consignments of non harmonized live animals a nd products of animal origin are not concerned 
and when surveillance program for certain disease is still not in place and therefore it is not possible 
to apply EU legislation although in force. 
2. When does Croatia intend to adopt EU ma rket access schedules and commitments?  Prior to, 
or upon accession? 
Answer:  
Croatia intends to adopt EU market access sch edules and commitments upon accession to the EU, 
precisely, from the first day of the EU Membership. 
3. To what extent has Croatia adopted or harm onized with EU services-related regulations and 
legislative measures?  
Answer:  
Croatia has aligned its national legislation with the acquis communautaire  in the field of the right of 
establishment and freedom to provide services.  The alignment with the new acquis communautaire  
(Directive 2006/123/EC on services in the internal ma rket) is underway and will be completed by the 
date of the accession of the Republic of Croatia to the European Union.  WT/TPR/M/227/Add.1 
 Page 25 
 
 
 4. To what extent has Croatia ad opted EU investment regulations? 
Answer:  
Croatian Act on Investment Promotion (OG 138/ 06) is completely harmonised with the acquis 
communautaire of the EU.  It provides all key provisions incorporated in EU legislation regulating 
national regional aid.  The harmonisation of the Act on Investment Promotion was done in accordance 
with the following sources of EU legislation:  the Treaty establishing European Community  
(OJ C 325/35);  guidelines on national regional aid for 2007-2013 (OJ 2006/C 54);  communication from the Commission – Multisectoral Framework on regional aid for large investment projects  (OJ C 70); and Commission notice on the application of  the State aid rules to measures relating to 
direct business taxation (OJ C 384). 
5. What additional measures beyond the trade related aspects of the Stabilization and 
Association Agreement are still being ne gotiated in the accession negotiations? 
Answer:
 
Please note that Negotiations for the Accession of the Republic of Croatia to the EU are conducted on 
the basis of General EU Position that sets down scope, rules and pr ocedures of Accession 
Negotiations.  Scope of negotiati ons themselves goes beyond the sc ope of the SAA Agreement and 
covers, beside trade ones, all other aspects of th e full EU membership;  such as economical, fiscal, 
legal, political, institutional, social ones etc.  For the purpose of Accession Negotiations such issues 
are being divided into 35 different  negotiating chapters.  Out of the se, negotiations are still underway 
in following Chapters:  Freedom of Movement of Goods, Freedom of Movement of Capital, Public 
Procurement, Competition policy, Agriculture and Rural Development, Food Safety, Veterinary and 
Phytosanitary Policy, Fisheries, Transport Policy,  Taxation, Regional Policy and Co-ordination of 
Structural Instruments, Judiciary and Fundamental Rights, Justice Freedom and Security, Environment, Foreign Security and Defense Policy,  Financial Control and Financial and Budgetary 
Provisions.  
(Page 13, Para 40)
 
The Government Report states:  "Another significan t area of reforms in agricultural sectors in the 
following period will be the measures regulating market for agricultural products, notably the 
intervention measures, adoption of market standa rds, encouraging the establishment of producers' 
organizations.  In this area as well, the priority is the harmonization with the requirements of EU 
legislation, with the new Act on the Regulation of Agricultural Products Market having been adopted 
in December 2009." 
6. Please explain the impact that this law will have on Croatia's global trade in agriculture and 
provide details of the law's measur es directly affecting imports, includi ng rules of origin, tariffs, other 
duties, and taxes.  What is the status of this new law's implementation?  How has the government 
addressed Croatia's WTO obligations?  
Answer:  
The Act on the Regulation of Agricultural Products  Market regulates the measures of the market 
organization in certain agricultural sectors, the comp etences of different government authorities in the 
implementation of those measures;  it defines the be neficiaries of those measures and the control and 
inspection system.  WT/TPR/M/227/Add.1 
Page 26  
 
 With regard to the measures relating trade, the Ac t covers the distribution of preferential tariff quotas 
and import and export licences.  
The Act does not include other measures concerning imports of the agricultural products which are 
implemented by the other state authorities within thei r competence (duties, taxes or rules of origin) 
and it is not related to Croatia's WTO obligations. 
The main objectives of the Act are the harmonization w ith the EU legislation and preparing for future 
integration into the common EU market.  In that  respect, the Act represents the good foundation for 
more efficient trading of Croatian products on the EU market. 
The Act has entered into force in December 2009 and currently the implementing regulations are 
being prepared for the adoption.  
(Page 14, Para 46)
  
The Government states that it will provide for labour and social rights as part of privatization efforts 
in the shipbuilding sector. 
7. What types of measures will the Governme nt take to provide for international labour 
standards as part of the privatization process, such  as those regarding the right of association and 
collective bargaining? 
Answer:  
Pursuant to the valid legislation of Croatia, the Croatian Government has established the workers' 
freedom of association, while negotiating of worker s and employers is carried out pursuant to the 
Labour Act.  Furthermore, in the internationa l public invitation to tender for the purchase of 
shipyards’ shares in the majority ownership of Cr oatia, among required conditions  of the invitation to 
tender that a Bidder has to fulfil following:  assuming liability to retain collective agreement in force 
that are binding for a Company (a shipyard), making evaluation of needed number and structure of the employed in the Company upon the accomplished restructuring and making plan and providing 
redundancy social security plan during restructur ing pursuant to the regulations of Croatia. 
Report by the Secretariat - WT/TPR/S/227
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (1) M
EASURES DIRECTLY AFFECTING IMPORTS  
(vi) Contingency trade measures 
(Page 42, Para 49)  
The Secretariat Report stat es "Anti-dumping or countervailing duties, or any undertaking must not be 
kept in force longer than necessary, and in any case for no more than 12 or 15 months."   WT/TPR/M/227/Add.1 
 Page 27 
 
 
 8. Please confirm that 15 months is the maximum duration that a measure may remain in force.  
Are there any exceptions under which a measure may exceed 12-15 months?  
Answer:  
In line with the Croatian regulations the anti-dumping,  i.e. countervailing duties shall remain in force 
for the period required to reverse the impact of anti-dumping, i.e. subsidized import which caused 
damage. 
The anti-dumping, i.e. countervailing duties shall expi re not later than 5 years from the day of their 
imposing or from the day of the implementation of  the latest verification procedure, if such 
verification procedure comprises the identification of  dumping, i.e. subsidizing and damage as well. 
The verification procedure shall be accomplished with in 12 months and not later than 15 months from 
the beginning of the verification procedure.  
Regarding the above question related to the maximu m duration of a measure, the Croatian side would 
like to amend the WTO Secretariat Report with the provisions of the regulation in force in Croatia so the paragraph 49 should be written (or replaced by): 
Ministry of Economy, Labour and Entrepreneurship shall propose to the Government of Croatia to 
take a decision on prescribing of provisional or  definitive anti-dumping or countervailing duties. 
In line with the Croatian regulations the provisi onal anti-dumping or countervailing duties shall be 
applied no earlier than 60 days from the initiation of the proceedin gs, and apply a maximum period of 
four months;  however, under special circumstance s, the period may be extended to six or nine 
months, respectively. 
The anti-dumping or countervailing duties shall rema in in force only as long as it is necessary to 
counteract the effect of the dumped or subsidized import which caused injury. 
Definitive anti-dumping or countervailing duties shall e xpire at latest 5 years from its imposition or 
from the date of the most recent verification if such a verification procedure covers both dumping or subsidization and injury. 
The verification procedures shall be concluded within 12 months and at the latest within 15 months 
from the date of initiation of the verification procedure.  
(Page 42, Para 50)
 
The Secretariat report states that "a safeguard me asure may be imposed if particular goods are 
imported in increased quantities and if such imports  cause or threaten to cause injury to domestic 
production producing like goods."  The United States not es that the serious injury standard required 
by the WTO Agreement on Safeguards appears to be re flected in Croatian law only with respect to the 
imposition of provisional safeguard measures in exceptional circumstances for a maximum of 
200 days.  WT/TPR/M/227/Add.1 
Page 28  
 
 9. Beyond provisional safeg uard measures, how does Croatia  explain its imposition of 
safeguard measures in light of the "serious injury"  threshold required by Articles 2 and 4 of the WTO 
Agreement on Safeguards? 
Answer:
 
In line with Croatian regulations the safeguard measures shall be applied to excessive import of 
certain goods in the customs territory of Croatia if the preliminary procedure reveals that due to the 
excessive imports caused or threatened to cause serious damage to the domestic production. 
However, if the delay of imposi ng the safeguards would cause hardly preventable damage to domestic 
production, the Government may, on proposal of the Ministry of the Economy, Labour and Entrepreneurship, impose provisional safeguard measu res (in form of increase of duties during the 
period not exceeding 200 days), if it identifies the existence of re liable indicator that the increase 
imports caused or threatens to cause seriou s damage to domestic production. 
Pursuant to Croatian regulation " serious damage" is significant de terioration of the position of 
domestic production. Finally, the Croatian regula tions, as well as the WTO Agreement of Safeguards, 
set forth that the damage caused to domestic produc tion or its threatening is a standard required for 
introducing both the safeguard and the provisiona l safeguard in the territory of Croatia.  
(2) M
EASURES DIRECTLY AFFECTING EXPORTS  
(iv) Export subsidies, finance, assistance, and promotion (Page 54, Para 99)
 
According to the Secretariat, there are several s ubsidy programs maintained by the Croatian Bank for 
Reconstruction and Development (H BOR), whose main objectives include "increasing the volume of 
Croatian exports;  developing new export markets;  increasing the share of Croatian exporters in 
international trade;  diversifying exports of goods and services; and supp orting Croatian exporters, 
investors, and overseas contractors".  HBOR ad ministers several programs which provide export 
financing and guarantees.  These include granting loans, insuring export transactions and issuing 
export guarantees.   
10. Please describe each of these programs in light  of Croatia's obligation under Article 3 of the 
Subsidies Agreement not to provide subsidies conti ngent upon export.  We note that a similar 
program, "Support for Economic Activities," was no tified in G/SCM/N/95/HRV;  however, these 
specific aspects of this program were  not included in the notification.   
11. Does Croatia plan to notify these specific programs?  If not, please clarify why the 
government believes that they do not meet the criteria set out in Article 25. 
Answer:  
Currently, HBOR maintains following export prom otion programs:  Loan Programme for the 
Financing of Exporters out of IBRD Loan Proceeds;   Supplier Credit;  Buyer Credit (Credit Lines and 
Individual Buyers);  Pre and Post Shipment Export Finance and Export Credit Insurance.  
For the Loan Programme for the Financing of Expo rters out of IBRD Loan Proceeds and for the Pre 
and Post Shippment Export Finance, the interest ra te is determined individually for each borrower, 
and it is calculated on the basis of the base inte rest rate (regulated by the Croatian Competition  WT/TPR/M/227/Add.1 
 Page 29 
 
 
 Agency) plus the margin which is calculated acco rding to the borrowers credit rank and offered 
collaterals. 
For the Supplier Credit, the interest rate is dete rmined on the basis of the creditworthiness of the 
supplier and the type of export transaction.  The in terest rate can be fixed (CIRR + margin which 
ranges from 0.2 – 2 %, depending on the creditwor thiness of the supplier, the buyer, the export 
transaction, the importing country and the repaymen t term) or variable (LIBOR/EURIBOR + margin 
which depends on the creditworthiness of the supplie r, the buyer, the export transaction, the importing 
country and the repayment term). 
For the Buyer Credit, the interest rate is dete rmined on the creditworthiness of the bank, on the 
importing country and the export transaction.  The in terest rate can be fixed (CIRR + margin which 
ranges from 0.2 – 2 %, depending on the creditwor thiness of the buyer/bank, the importing country 
and the repayment term) or variable (LIB OR/EURIBOR + margin which depends on the 
creditworthiness of the buyer/bank, the im porting country and the repayment term). 
The Export Credit Insurance Programme, although done on state account, is not subject to any state 
subsidy. 
Therefore, all the abovementioned programs are ope rated under the market conditions and are in line 
with Croatia's obligations under Ar ticle 3 of the Subsidies agreement.   Croatia is preparing a new and 
full notification pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on 
Subsidies and Countervailing Measures.  
(v) Free zones 
(Page  57, Para 105  and 106) 
Are the benefits under the Free Zone Act continge nt upon export performance?  If so, please explain 
this in light of Article 3.1(a) of  the WTO Subsidies Agreement.  Also , according to the Secretariat, "a 
free zone may also be established on the basis of  a concession granted by the Government".  The 
Secretariat advises that "the concession is granted on the basis of a public set of tenders or competitive bidding".   
12. What is the process and where is the pro cess published for enterprises to know about and 
compete for government concessions? 
Answer:
 
Free Zones Act does not regulated benefits that ar e contingent upon export performance.  Conditions 
for granting concessions for the establishment of a free zone are regulated by the Free Zones Act 
(OG 44/96 and 85/08).  Concessions for the establishment of a free zone are being granted by the 
Government of Croatia. 
(3) M EASURES AFFECTING PRODUCTION AND TRADE  
(iv) Protection of intellectual property rights 13. (Page 69, Para 137)
 
In footnote 181, the Secretariat notes that the Copyright and Related Rights Act contains some 
exceptions and limitations to copyright, including, among others, for "disabled persons' use" and for 
"use for the information of the public."   WT/TPR/M/227/Add.1 
Page 30  
 
 The former, "disabled persons' use," refers to Ar ticle 86 of the Copyright and Related Rights Act, 
which provides a broad lim itation that appears to apply to any di sability.  Please provide the definition 
that applies to the term "disability," and explai n this in light of TRIPs Article 13 and Berne 
Article 9(2).   
The latter, "use for the information of the public", re fers to Article 89(2) of the Copyright and Related 
Rights Act, which appears to allow, for purpo ses of informing the public, the reproduction and 
distribution of copyrighted works to the public of articles and photographs in their entirety.  Please explain this in light of TRIPs Article 13 and Berne Article 9(2). 
Answer:
 
It should be noted that Article 80 contains common provisions for all articles of the Chapter 6 of the 
Copyright and Related Rights Act (which includes the two articles referred to here, namely 86 and 
89(2)).  In Article 80 it has been specifically pr ovided for that cases of the so-called free use are 
allowed only where the three conditions, conventionally  called the "three step test" have been fulfilled 
cumulatively:  that a particular case of free use is expressly provided for in this Act;  that such free 
use does not conflict with a normal exploitation of the work and that such free use does not 
unreasonably prejudice the legitimate interests of the right holder. 
Article 86 provides specifically for: 
"The use of copyright works for the benefit of pe ople with a disability shall be permitted where the 
work is used in a manner directly related to the dis ability of such people to the extent required by the 
specific disability, and where such use is of a non-commercial nature."  
The Copyright and Related Rights Act does not provide for specific definition of "disability". 
However the original term in the Croatian text of the Act, translated as "di sability", is "invalidnost", 
which refers to the person that due to the physical or psychical damage (impairness) has partly or completely (permanently) lost his/her abilities (to work).   
An example of a use referred to in Article 86 is  the reproduction of a literary or other written work, 
previously transcribed into Braille al phabet for the purposes of blind persons. 
Furthermore, in accordance with the Directive on the harmonization of certain aspects of copyright 
and related rights in the information society, Artic le 13 of the TRIPs Agreement and Article 9 (2) of 
the Berne Convention,  the use of copyright works for the pur pose of informing the public has been 
provided for in the Copyright and Related Rights Ac t in the following manner (underlined by SIPO): 
"(1) It shall be permitted, to the extent necessary for informing the public  on current events by press, 
radio or television, to reproduce, to distribute and to communicate to the public:  
1. works that are part of current event that is being re ported on, provided that the work is used to the 
extent justified by the purpose and ma nner of reporting on current events;  
2. newspapers' articles on and photographs of current political, economical or religious topics, which 
are released through other media of public communi cation, provided that the author has not expressly 
prohibited such use, and that the work is used to  the extent justified by the purpose and manner of 
reporting;  
3. public political, religious or other speeches made  at state or local governmental bodies, religious 
institutions or at state or religious ceremonies,  as well as excerpts from public presentations;   WT/TPR/M/227/Add.1 
 Page 31 
 
 
 (2) In all the cases referr ed to in paragraph (1) of this Article, the source and authorship shall be 
indicated."  
The provisions of this Article regulate the use of copyright works by reproduction, distribution or by 
communication thereof to the public, when informing the public on current events by press, radio or 
television and should be also interpreted in conjunction with Artic le 80 mentioned above. 
14. (Page 71, Para 144)  of the Secretariat Report refers to  Croatia's legislation on geographical 
indications and designations of origin.  It appear s that under the Act on Geographical Indications and 
Designations of Origin of Products and Services it is  possible for a trademark owner to oppose a later 
in time geographical indication or designation of origin  if it is likely to be confused with the prior 
trademark.  If an opposition is not filed within the time fram e, is it possible for a trademark owner to 
cancel the geographical indication or d esignation of origin on such grounds? 
Answer:  
The Act on Geographical Indications and Designa tions of Origin of Products and Services 
(OG 173/03, 186/03 and 76/07) provides for: 
Article 44 
Declaration of a decision on the protection of a geographical indication and a designation of origin 
null and void 
(1) A decision on the protection of a geographical indication or a designation of origin shall be 
declared null and void, if established that: 
1. There were no conditions for the protection of a geographical indication or a designation of origin 
provided for by this Act (…) 
According to Article 30, a geographical indication or a designation of origin may not be registered if, 
inter alia , there is a collision with an earlier trade mark .  If a trade mark owner fails to file an 
opposition according to Article 30 a geographical i ndication or a designation of origin would be 
registered even if there were no condition for the pr otection.  Our understanding is that in such case 
paragraph 1 of Article 44 could be  invoked and the geographical indication or a designation of origin 
may be declared null and void since there were no conditions for the protection in the first place 
because of a conflict with the earlier trade mark.  A conflict with the earlier trade mark is namely by Article 30 of this Act provided as a negative condition for the protection.  
Therefore, the interpretation by the SIPO of Article 44 paragraph 1 in relation to Article 30 is that it 
would be possible for a trade mark owner to cance l the geographical indication or a designation of 
origin on the basis of an earlier trade mark if it is  likely to be confused with the prior trade mark.  WT/TPR/M/227/Add.1 
Page 32  
 
 ADDITIONAL QUESTIONS FROM THE UNITED STATES
 
Questions contained in the USA statement made during the second day of the TPR meeting, 
26 March 2010  
1. Article 17.4 of the Agreement on Subsidi es and Countervailing Measures states that the 
application of provisional measures shall not exceed four months.  There is no exception.  Can 
Croatia please confirm that its re gulations do not permit the applica tion of provisional countervailing 
duty measures beyond four months? 
Answer  
Yes, Croatia confirms that according to the Cr oatian regulation the provisional countervailing duties 
shall be applied no earlier than 60 days from the in itiation of the proceedings, and shall apply for a 
maximum period of four months.  
2. Article 7.4 of the Antidumping Agreement stat es that the application of antidumping measures 
shall not exceed four months, or in certain define d circumstances, six months.  These periods may 
only be extended to six and nine months, respectively,  if the authorities examine whether a duty lower 
than the margin of dumping would be sufficient to remove injury.  This is commonly referred to as a 
"lesser duty rule."  Can Croatia please clarify whet her its regulations include a provision for the 
application of a lesser duty rule? 
Answer  
Croatia confirms that according to the Croatian regul ation the provision for the application of a lesser 
duty rule is included.  
However, in English version of the Croatian Regula tion on procedure and method of determination of 
anti-dumping and countervailing duty notified to the WTO (G/ADP/N/1/HRV/2, 
G/SCM/N/1/HRV/2), one paragraph in Article 32 is missing by technical mistake with the following 
content: 
"If the Ministry during the verification procedure investigates whether the application of provisional 
anti dumping duties in amount lower than the dumpi ng margin would be necessary for eliminating the 
damage, it can propose to the Government of the Re public of Croatia the application of provisional 
duties during the period not exceeding six months." 
Therefore, the hole Article 32 reads as follows: 
V. ANTI-DUMPING AND COUNTERVAILING DUTIES 
Provisional anti-dumping and countervailing duties  
"Article 32 
When after the initiation of the investigation a nd after the interested parties were given the 
possibility to outline their objections the existence of  the dumped or subsidized imports and the need 
for provisional duties for the prevention of injury that such import could cause during the investigation have been verified, the Minist ry shall propose to the Government of the 
Republic of Croatia to take a decision on prescrib ing of provisional anti-dumping or countervailing 
duties.   WT/TPR/M/227/Add.1 
 Page 33 
 
 
 Provisional anti-dumping or countervailing du ties cannot be higher than provisionally 
determined dumping margin or subsid y amount, and have to be lower than if in that case sufficient to 
remove injuries for domestic industry. 
When the Government of the Republic of Cr oatia shall prescribe provisional anti-dumping or 
countervailing duties, the payment of these duties shall be the condition for releasing the goods in 
question to free circulation in the customs territory of the Republic of Croatia. 
Exceptionally, the products may be released to free circulation even before the payment of 
anti-dumping or countervailing duties, when the guara ntee pursuant to customs regulations has been 
deposited. 
The provisional anti-dumping or countervailing dut ies shall be applied no earlier than 60 days 
from the initiation of the proceedings, and shall apply for a maximum period of four months. 
If the Ministry during the verification proce dure investigates whether the application of 
provisional anti dumping duties in amount lower than the dumping margin would be necessary for eliminating the damage, it can propose to the Govern ment of the Republic of Croatia the application 
of provisional duties during the period not exceeding six months. 
Upon the request of exporters representing a signi ficant percentage of the trade in question, 
the application of provisional duties may be prol onged for a maximum period of six months or for 
nine months if the Ministry should evaluate duri ng investigation that the application of anti-dumping 
duties in the amount less than the dumping ma rgin is necessary to remove the injury. 
The decision on prolongation shall be taken by the Government of the Republic of Croatia 
upon the proposal of the Ministry.  
All the proposals for termination or prolongation of provisional duties has to be delivered to 
the Government of the Republic of Croatia at latest  a month prior to the expiration of the validity of 
provisional duties." 
QUESTIONS FROM EU
 
Report by Croatia (WT/TPR/G/227)  
ECONOMIC ENVIRONMENT 
II T RADE POLICY DEVELOPMENTS  
(Page 7, Para 16 ) 
The Report refers to the State Office for Metrol ogy (DZM) operating under the competence of the 
Ministry of the Economy, Labour and Entrepreneursh ip.  It is our understanding that following the 
institution of the new Croatian Metrological Institute  (HMI), the State Office for Metrology retains 
the responsibility for legal metrology, while scientific metrology is being transferred to the Institute.  
1. Could Croatia inform about the progress of this transition?  
Answer:  
National Metrology Institute WT/TPR/M/227/Add.1 
Page 34  
 
 Based on legislation Amendments to the Metrol ogy Act (OG 111/2007) and the Decree establishing 
the Croatian Metrology Institute (HMI) (OG 77/08) the temporary Director of HMI and members of 
the Administrative board have been nominated.  In order to facilitate the development of the 
fundamental, scientific and technical metrology, the minister of the Ministry of Science, Education and Sports has the responsibility to establish the Na tional Metrology Council as an advisory body to 
the Minister.  HMI is therefore the responsibility of  the Ministry of Science, Education and Sports, 
while DZM shall be represented in the Governme nt of Croatia through MINGORP (Ministry of 
Economy, Labour and Entrepreneurship) and shall conti nue to maintain the crucial role in the running 
and development of the national legal metrology sy stem.  With regard to the above stated the 
restructuring of the national metrology system is envisaged.  
Adequate financial resources have already b een secured through the state budget, enabling full 
operability of the HMI.  Premises have also been ensured. 
The State Office for Metrology has elaborated in  mutual cooperation with the National Metrology 
Institute (HMI) the relevant Demerger Balance Sheet  document, which is still under discussion.  
Membership and participation in the work of the International and European  metrology organisations 
In consequence of splitting the Croatian national me trology system to two main segments covering 
legal issues and covering scientific and industria l metrology related activities the international 
memberships and representations have  been rearranged accordingly.  In this regard the State Office 
for Metrology shall continue to actively participate in the work of OIML and WELMEC, while membership in EURAMET, BIPM have been take n over by HMI.  However representatives of DZM 
shall continue their work in EURAMET Focu s groups relating to metrology infrastructure 
development.  
Report by the Secretariat (WT/TPR/S/227) 
II TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES (2) P
REFERENTIAL TRADE AGREEMENTS AND ARRANGEMENTS  
(Page 18, Para19, Footnote 19)  
As of March 2010, accession negotiatio ns had been opened on 30 out of  35 chapters and provisionally 
closed on 17:  free movement of workers;  right of establishment and freedom to provide services;  
company law;  intellectual property;  financial services;  information society and media;  economic and monetary policy;  statistics;  trans-European  networks;  science and research;  education and 
culture;  energy;  enterprise and industrial policy;  customs union;  consumer protection;  and external 
relations.  
Answer:
 
Footnote 19 related to the paragraph 19 on the page  18 of the Report should be updated as follows:  
"As of March 2010, accession negotiations had been  opened on 30 out of  35 chapters and 
provisionally closed on 17:  free movement of workers;  right of establishment and freedom to provide services;  company law;  intellectual property rights;  financial services;  information society 
and media;  energy;  economic and monetary policy;   statistics;  social policy and employment;  
enterprise and industrial policy;  trans-European networks;  science and research;  education and 
culture;  consumer and health protection;  customs union; and external relations.”  WT/TPR/M/227/Add.1 
 Page 35 
 
 
 In relation to the EU Comment, chapter on "Socia l policy and employment" should be added to the 
list while according to the EU negotiation framework  the names of the following two chapters should 
be listed as:  "Intellectual property rights " and "Consumer and health protection".  
III. TRADE POLICIES AND PRACTICES BY MEASURES 
(1) M EASURES DIRECTLY AFFECTING IMPORTS  
(Page 45, Para 44)  
An open and transparent quota management system is of utmost importance.  
2. Could Croatia update on measures be ing taken to apply an import licence and quota 
management system for all agricultural produc ts compliant with that of the EU? 
Answer:  
Croatia has adopted the Act on the Regulation of Agricultural Products Market and the Action plan 
for the harmonization with the common organizati on of agricultural markets in the EU.  The 
concerned documents represent a significant step  towards harmonization with the EU CMO. 
The Act on the Regulation of Agricultural Products Mark et covers the measures and products affected 
by those measures similarly to the Council Regulation No. 1234/2007.  
It provides for market organization measures and pr esents a legal basis for the adoption of a number 
of regulations that will determine the implementing details.  
The Action plan for the harmonization with the co mmon organization of agricultural markets in the 
EU is directly related to Croatia's negotiating process and was discussed and positively evaluated by 
the European Commission.  
With regard to the abovementioned, the implem enting regulations covering import licence and quota 
management system are currently being drafted by the Ministry of Agriculture and in accordance with 
the relevant EU provisions. 
(vi) Contingency trade measures  
(Page 41, Para 47)  
Cheese substitutes and Ementaler were withdrawn from the scope of the provisional safeguard 
measure referred to in paragraph 47 on 30 Oct ober 2009, while the measure itself expired on 
8 January 2010.  
Answer (Croatia's proposal):  
The Government at its session of 30 October 2009 adopted the Decision introducing a safeguard 
measure on importing semi hard cheese, which ente red into force on 9 November 2009.  This 
Decision regulates the imposition of the safeguard measure for two products, Gouda and Edam.  The 
measure was applied in the period lasting for 200 da ys, starting from the date of the introduction of 
the provisional safeguard measure, and therefore expired on 8 January 2010. 
At the same time, the Government withdrew the provisional safeguard measure for cheese 
supplements and the duties collected for those products are currently being reimbursed.  The WT/TPR/M/227/Add.1 
Page 36  
 
 preliminary safeguard measure for Ementaler was withdrawn in August 2009.  Duties collected for 
Ementaler are in the process of reimbursement too. 
(vi) Standards and other technical requirements 
(Page 44, Para 57 and Footnote 69)
 
The EU welcomes the membership of the Croatian Accreditation Agency (HAA)  in the European co-
operation for Accreditation (EA) and the undergone peer evaluation by EA.  
3. Could Croatia indicate whether it is also c onsidering membership of HAA in the International 
Accreditation Forum (IAF)? 
Answer:  
Croatian Accreditation Agency will apply for IAF membership in 2011 after concluding the EA 
Multilateral Agreement which is expect ed to be completed in 2010.  
(viii) Public procurement 
(Page 51, Para 84)  
4. Could Croatia provide statistics on the proportion of the different procedures 
(open/restricted/negotiated) used by contra cting authorities/entities for the award of public 
contracts? 
Answer:  
Related to the percentage of different procedur es based on the total value of public procurement, 
please note that the table provided in paragraph 85 (page 52) in the last column comprises percentages on usage by contracting authorities/entities for all pr ocedures.  In accordance with the provided data 
for 2008, in relation to the total value of public procurement, the highest share is covered by open 
procedure (75.95%) and negotiated proc edure without prior notice (21.60%). 
When comparing different procedure in relation to to tal number of contracts (18433 in 2008), statistic 
on proportion for different procedures is following:  open (77.23%), restricted (2.00%), restricted accelerated (0.06%), negotiated procedure with prio r notice (1.29%), negotiated accelerated (3.87%), 
and negotiated procedure without prior notice (12.42 %), competitive dialog (0.11%), services listed in 
the Annex IIB (3.02%).  It should be noted that in  relation to total number of contracts, the most 
frequent are also open procedure (77.23%) and negot iated procedure without prior notice (12.42%). 
(Page 52, Para  90)
 
5. The EU encourages Croatia to continue the st rengthening of administrative capacity at all levels 
in order to ensure proper implementation of procurement legislation. 
Answer:  
All institutions within the public procurement syst em have been intensivel y striving to strengthen 
administrative capacities of contracting authorities/en tities on all levels (national, regional, local).  
Therefore, the largest emphasis has been put on prov iding of adequate training (e.g. introduction of 
specialist training programme in the field of public  procurement, numerous workshops in cooperation 
with the Croatian Chamber of Economy and the Croatian Employers' Association), permanent  WT/TPR/M/227/Add.1 
 Page 37 
 
 
 assistance trough issuing of opinions and advices on im plementation of legislative framework (e.g. by 
e-mail, call centre), development of implementing tools (manuals, guidelines). 
(3) Measures Affecting Production and Trade 
(ii) State trading, state-owned enterprises, and privatization 
(Page 61, Para 116)  
Update information on the portfolio of the Croa tian Privatization Fund is available in the Pre-
accession Economic Programme for 2010-12, published by the Government in January 2010.  
According to this document, in mid-September 2009,  the Croatian Privatization Fund (CPF) portfolio 
encompassed 783 companies (out of which 736 compani es were available for sale) with total equity 
capital of HRK 59.8 billion, out of which HRK 16.5 b illion is in state ownership.  CPF is a minority 
owner with up to 25% share in equity capital in 80% of the companies (627 companies), in another 
72 companies the share ranges between 25% and 50% , whereas in 84 companies the state is still a 
majority owner with more than 50% share in capital.  Also, the last remaining agricultural 
conglomerate held in the CPF portfolio, the company Vupik d.d., Vu kovar, was successfully 
privatized in December 2009.  
6. Could Croatia outline its near-term plans regarding the further pursuit of privatization? 
Answer:  
In the future period, preparation and announcemen t of public invitations to tender relating to 
companies in the majority state-ownership will be accompanied with an intensive activity aiming at 
organisational transformation of the CPF. 
According to the adopted Strategic Development Framework for 2006-13, the main goals in the area 
of privatization remain the accomplishment of priva tization of the companies from the state's portfolio 
managed by the Croatian Privatization Fund (C PF) with the exit from the market of hopeless 
companies and an adequate social security plan through the institutions of labour market and social 
policy, accomplishment of the privatization process in the shipbuilding industry in the course of 2010 (the international call for public tender is unde rway) and transformation of a few institutions 
managing state property in a single institution that w ill efficiently and actively manage state property.  
If the sale of the company may not be realized thr ough public call for tender or an interested investor 
may not be found the company will be forced to exit the market by means of bankruptcy or liquidation. 
According to the Croatian Privatization Fund, desp ite of great number of sale transactions (Stock 
Market and Public Invitations to Tender) due to co ntinuous cancellations of sale's agreements with 
"small shareholders" (Art 31 of the Privatization Act) but also due to the fact that the privatization is 
done in share blocks, the number of companies in state portfolio is slowly decreasing. 
As on March 15, 2010 there are still 782 companies in the state portfolio.  It needs to be mentioned 
that this number is constantly changing, almost daily, due to the following grounds:  cancellation of 
sales agreements with so called "small shareholders";  cancellation of sales agreements with investors;  
allocation of free shares to war veterans;  cancellation of so called "reservations";  sales;  capital 
injections;  changes in company statuses a nd adjustment with the Company Law etc.  
According to the shareholding held by the state in the share capital of companies, the state portfolio 
can be divided as follows (data on March 15, 2010): WT/TPR/M/227/Add.1 
Page 38  
 
 Description Number of 
companies Total share capital 
(KN) Value of the total state 
portfolio (KN) Value of the 
portfolio held by 
the CPF (KN) 
Share held by the state 
below 24,99% share 
capital 632 40,999,074,262 2,777, 232,146 2,349,062,316 
Share held by the state 
from 25,00 – 49,99% share capital 69 2,897,601,900 951,241,137 477,544,383 
Share held by the state 
from 50,00 – 100,00% 
share capital 81 15,630,727,482 12,319, 901,731 4,884,587,091 
Total 782 59,527,403,644 16, 048,375,014 7,711,193,790 
 
Analyzing the state portfolio it can be concluded that more important are the companies where the 
state portfolio exceeds 50% in the sh are capital.  From the total of 782 companies in state portfolio, 
the state is a majority owner in only 81 companies.  In the remaining companies the share portfolio is 
below 50% of the share capital and these compani es are therefore less interesting to potential 
investors.  In majority of companies (more then  80% of the state portfolio) the state has a minor 
shareholding (below 25%).  
In majority ownership of the state left are only companies with many inherited problems which are 
currently being resolved partly and slowly thro ugh the programs adopted by the Government of 
Croatia (agreements with creditors in compliance with the Law, financial consolidations at the 
proposal of competent ministries, etc.).  The privatization of these companies will require a special attention and specific approach in defining the terms of the tender.  There are currently no agricultural 
combines in majority state portfolio.  
Considering the enormous number of problems connect ed with the remaining companies in the state 
portfolio, which make it harder and even impossible to  privatize, it is difficult to precisely define the 
plan for future privatization.  However, what can be  said is that it is the policy of the Government of 
Croatia, to proceed with the priv atization of all companies from the state portfolio which meet the 
requirements, urgently and without delays. 
Except the privatization of companies from majority state portfolio the Croatian Privatization Fund is 
in charge of the sale of affiliated companies (da ughter companies) from the portfolio of the Croatian 
Railways (HŽ).  The sale of affiliated companies fro m the portfolio of the HŽ is implemented in 
accordance with individually concluded agreements w ith HŽ and the HŽ are authorized to determine 
the starting price and mandatory terms of the public invitation to tender.  The last tender for the sale 
of affiliated companies from the portfolio of HŽ w as made public in February 2009 when the HŽ last 
provided the documents for tendering. 
On March 15, 2010 we have total of 9 tenders fo r companies from the majority state portfolio, as 
follows:  "ZRC Lipik" d.d. Lipik – deadline for bid submission April 1, 2010;  "Bizova čke toplice" 
d.d. Bizovac – deadline for bid submission April 7, 2010;  "Meiso" d.d. Gori čan – deadline for bid 
submission April 16, 2010;  "Brodogra đevna industrija 3. Maj" d. d. Rijeka;  "Brodogradilište 
Kraljevica" d.d. Kraljevica;  "Brodogra đevna industrija Split" d.d. Split;  "Brodotrogir" d.d. Trogir;  
"Uljanik" d.d. Pula and "Brodosplit - Brodogradilište specijalnih objekata" d.o.o. Split.  The deadline 
for submission of bids for all of the shipyards is April 19, 2010. 
  WT/TPR/M/227/Add.1 
 Page 39 
 
 
 In the course of 2009 we have privatized as follows: 
Description Number of companies 
which sale was made 
public Number of realized 
sales / opened 
liquidations or 
bankruptcies Note 
Sale through public invitation to 
tender 19 2 Both sales agreements were 
signed in early 2010 
Sale through public auction on the 
stock exchange for cash 37 9  
Sale through public auction on stock 
exchange for settlement of capital 
expenditures (rights) 370 103  
Bankruptcies  24  
Liquidations  3  
Total  141  
 
(Page 61, Para 116 and Page 81, Para 29)  
The Report states that Croatia's shipyards are being restructured as a precondition for their 
privatization.  On the contrary, our understanding  of the current situation is that Croatia's six 
shipyards are being privatized before their restructuring. 
7. Could Croatia clarify its plans regarding its shipyards, including estimated timings? 
Answer:  
As one of possible and for the moment most favourable solutions of the problems in shipbuilding 
industry it has been chosen privatization of shipbuilding industry aiming at it's restructuring.  
Currently it is underway an international public invita tion to tender for shares of six shipyards in the 
majority ownership of Croatia.  Since the adoption of the Decision on privatization of the state-owned 
shipyards until July 2009, the Government has conducte d intensive negotiations with all the interested 
parties and cooperated with the EC in order to  prepare this uncommonly demanding privatization 
process of the shipyards in a quality and comprehens ive way.  In this pro cess it needs to be assured 
that the restructuring through privatization will be  carried out in accordance with national interests 
regarding preservation and improveme nt of production and employment, and at the same time will not 
disturb market competition and will be performed in accordance with Croatian and European regulations and rules concerning market competition,  since these shipyards were operating for years 
receiving state aids. 
On 15 February 2010, the Croatian Privatization Fund (CPF) announced a Public Invitation to Tender 
for Shares in shipyards.   WT/TPR/M/227/Add.1 
Page 40  
 
 IV. TRADE POLICIES BY SECTOR 
(1) A
GRICULTURE AND RELATED ACTIVITIES  
(ii) Policy developments (Page 79, Para 22)
 
This paragraph should be amende d with new allocation for IPARD, as defined in the European 
Commission Decision of 10 September 2009 on amending Commission Decision C (2008) 690 of 
25 February 2008 approving the Programme for Agricu lture and Rural Development of Croatia under 
the instrument for pre-accession assistance (IPA), where maximum EU contribution for IPARD funds 
in 2007–11 is 129.4 million EUR. 
Answer:  
Croatia agrees with the proposed amendment regard ing paragraph 22.  Namely, the new allocation of 
IPARD funds is defined according to mentioned re ference from EU proposal:  European Commission 
Decision of 10 September 2009 on amending Commission Decision C(2008)690 of 25 February 2008 approving the Programme for Agriculture and Rural Development of Croatia under the instrument for 
pre-accession assistance (IPA), where maximum EU contribution for IPARD funds in 2007–11 is 
129.4 million EUR. 
(3) S
ERVICES  
(iii) Telecommunications and postal services (Page 87, Para 54)
 
8. What measures are being put forward in ord er to encourage competition in the fixed phone 
market which remains dominated by the Croatian Telecom? 
Answer:  
For every year since 2002 Croatian Telecom has been  declared SMP operator on relevant markets by 
the national regulatory authority.  From 2002 unt il 2009 Croatian Telecom has been declared SMP 
operator on the markets of public voice services in fixed network, interconnection and leased lines, 
according to the Telecommunications Act (based on 98 EU Framework).  According with those 
notifications the whole set of remedies, as prescribed by the Telecommunications Act, has been 
forced upon Croatian Telecom in order to enable th e market liberalization.  The most important 
remedies imposed were providing CPS services to alte rnative operators, retail price control, obligation 
to publish RIO and RUO (with prices approved by the NRA), transparency and non-discrimination.  
As of July 2008 Croatia has implemented ne w Electronic Communications Act, based on 2002 
Framework, with relevant market s as defined by the 2007 EC Reco mmendation on relevant markets.  
According to the transitional provisions from the Electronic Communications Act all remedies 
imposed based on the Telecommunications Act ar e in force until the NRA (HAKOM) finishes 
relevant market analysis according to the new framework. 
All nine markets are wholesale markets.  In this process HAKOM analyzed the relevant markets of 
call termination in public communication network pr ovided at fixed location, call transit in public 
communication network provided at fixed location, call origination in pub lic communication network  WT/TPR/M/227/Add.1 
 Page 41 
 
 
 provided at fixed location, market of the wholesa le access to the network infrastructure (which 
includes local loop unbundling) and wholesale broadband access.  
Croatian Telecom has been determined SMP operator on following markets according to the new law:  
a) call termination in public communication network pr ovided at fixed location, b) call origination in 
public communication network provided at fixed location, c) wholesale access to the network 
infrastructure (which includes local loop unbundling) and d) wholesale broadband access. 
Along with the SMP notifications following remedies  have been imposed on Croatian Telecom on all 
relevant markets:  access obligation, non-discrimin ation obligation, transparency obligation (must 
publish RIO, RUO and BSA), price control a nd cost accounting and accounting separation. 
Also, obligation to provide carrier selection (CS) and carrier reselections (CPS) has been imposed on 
the call origination market. 
Furthermore HAKOM is in the process of analyzing the relevant retail markets in fixed network.  
(Page 87, Para 56)  
9. Regarding the independent regulator in pla ce for post and telecommunications, the Croatian 
Post and Electronics Communications Agency (HAK OM), how is its independence guaranteed?  
Answer:  
The independence of the HAKOM is explicitly guara nteed by the law i.e. Electronic Communications 
Act.  The Article 7 of this Act defines HAKOM as separate and independent legal entity which is 
responsible only to the Parliament.  Also, Article  7 prohibits any type of influence on the HAKOM's 
work that might jeopardize its autonomy and independence. 
Further, according to this Act members of the collegi ate body fulfilling the function of the head of the 
HAKOM (HAKOM's Council) are protected from any ar bitrary dismissal.  They may be dismissed 
only for grounds that are explicitly provided in Article 9.  Also, HAKOM has its own budget allowing 
it to recruit a sufficient member of qualified staff.  Finally, all HAKOM's decisions are final in the 
administrative procedure and no other executive organ may influence, reverse or quash them.  They 
can be quashed only by an independent court i.e. Administrative Court in the administrative dispute 
proceedings. 
(Page 90, Para 62-63)  
10. What kind of licensing procedures are there curr ently in place in those areas of the postal 
services market that are competitive?   Are Croatian and foreign companies treated equal (outside the 
reserved area)? 
Answer:  
The Croatian Post and Electronic Communications  Agency issues licence s for competitive postal 
services at the request of all natural or le gal persons equally up on legal regulation. WT/TPR/M/227/Add.1 
Page 42  
 
 11. Will there be a need for an adoption of a new postal law to fully implement the postal 
liberalisation in line with the 2008 Strategy  for Postal Service Market Development? 
Answer:
 
The Postal Services Act was adopted in July 2009.  Amendments to the primary legislation already 
envisage implementation of most of the regulatory el ements of the 3rd Postal Directive and lay down 
a detailed time table for gradual market opening (full market opening envisaged for 
31 December 2012):  Full alignment with the postal acquis  (mainly provision of the 3rd Postal 
Directive) has not yet been achieved. Implemen ting legislation laying down conditions for the 
provision of postal services and rules of the pos tal system of the public operator was amended. 
12. Are there any safeguards against anti-competiti ve behaviour by the incumbent operator in the 
postal services sector? 
Answer:  
The Croatian Post and Telecommunications Agency is  authorised (among other duties) to supervise 
the status and development of the postal services ma rket and taking necessary measures to ensure fair 
and efficient competition on the postal services market. 
13. Could Croatia inform on which are the main players in its postal and courier services market, 
as done with regard to the electronic communications market in footnotes 72-75? 
Answer:  
The Croatian Post, as public operator was the desi gnated universal services provider.  There were 
20 postal services providers dealing on the postal services market in Croatia (other postal services). 
(v) Tourism services 
(Page 95, Para 82) Paragraph 82 mentions incentives and loans progr ammes in tourism provided by the Government 
through the Croatian Bank for Recons truction and Development (HBOR).  
14. Which is the legal basis fo r granting these incentives/loans? 
Answer:
 
The legal basis for granting the incentives and loan programmes in tourism provided by the 
Government through the Croatian Bank for Recons truction and Development (HBOR) is the HBOR 
Act (Article 2 and Article 10).  WT/TPR/M/227/Add.1 
 Page 43 
 
 
 (vi) Professional services  
(a) Legal Services (Page 95, Para 84)
 
15. What are the requirements and documents need ed for a foreign attorney to become member 
of the Bar Association in Croatia? 
Answer:  
In line with the Schedule of Specific Commitments  on Services, list of Article II MFN Exemptions, 
according to the obligations undertaken by Stabili sation and Association Agreement, the Companies 
Act (OG 111/93, 34/99, 121/99 - authoritative interp retation, 52/00 – Decision of the Constitutional 
Court of the Republic of Croatia 118/03, 107/07, 146/08 and 137/09) and the Legal Profession Act 
(OG 9/94, 117/08, 50/09 and 75/09), foreign law firms can currently establish their branches in 
Croatia.  However they are not entitled to enrolment in  the List of Attorneys held by the Croatian Bar 
Association since this type of right is not envisag ed for the Croatian law firms neither.  Law firms are 
enrolled in the specific Lists of law firms and law firm branches held by Croatian Bar Association. 
Upon accession of Croatia to the EU, EU attorneys w ill be entitled to enrol in the Lists for Attorneys 
that are held by Croatian Bar Association. 
(Page 96, Para 92)  
(a) Architectural and engineering services 16. What are the conditions to obtain consent from a Croatian chamber so that a foreign 
architect or engineer could undertake the activ ities of design or construction supervision?  
Answer: 
 
The Act on the architectural and engineering tasks a nd activities within the scope of physical planning 
and building stipulates: 
Article 67 "A natural person who is entitled to, perform the act ivities of designing and/or building surveillance in 
the capacity of the responsible person (hereinafter  referred to as the "foreign approved person") in a 
foreign country, that is, a country which is not a Member State of the European Union, can perform 
the activities of designing and/or building surveillan ce in the Republic of Croatia, in the capacity of 
the responsible person if he has been granted th e right to execute the tender design on a tender, 
provided that he is granted the approval of the a ppropriate Chamber established pursuant to this Act. 
The approval referred to in paragr aph 1 of this Article can be, under the assumption of reciprocity, 
granted to a foreign approved person if he h as the professional qualifications required for the 
performance of the subject activities pursuant to this Act. 
The assumption of reciprocity referred to in paragraph 2 of this Article shall not  be applicable to the 
foreign approved person who is a citizen of the WTO Member.  WT/TPR/M/227/Add.1 
Page 44  
 
 The approval referred to in paragra ph 1 of this Article is an administrative act against which there is 
not right to appeal;  however an administrative disput e can be initiated.  In that case, the procedure at 
the Administrative Court of the Repub lic of Croatia shall be urgent." 
According to transitional provisions of the Act, this  provision is valid also for persons from the EU 
Member States until Croatia became an EU Member State. 
The Statutes of the Croatian chambers of Architects and of Engineers stipulates that the approval will 
be granted by the Registration Committee or othe r relevant Committee.  The procedure foreseen for 
regular registration is applied with necessary modification.  
17. Are these the only activities a foreigner can provid e?  If there are other activities, please list 
them and provide the conditions required  to be able to undertake them. 
Answer:
 
The Act on the architectural and engineering tasks a nd activities within the scope of physical planning 
and building stipulates: 
Carrying out the tasks of a construction project manager Article 78 
A natural person who has the right to carryout task s of a construction project manager in a foreign 
country, shall be entitled, under the assumption of re ciprocity, to one-time, temporary and permanent 
carrying out of these tasks in Croatia, provided that  he/she has the professional qualifications required 
to carryout these tasks in accordance with this Act. 
The assumption of reciprocity referred to in paragra ph 1 of this Article do not apply to persons who 
are citizens of Member States of the EU  or is a citizen of the WTO Member. 
"Foreign contractor 
Article 80 A contractor who has registered office in a forei gn country or who is a citizen of a foreign country 
(hereinafter referred to as:  a foreign contractor) which is not a Member State of the EU, and who has 
the right to carry out construction activities in this  country, shall be entitled, under the assumption of 
reciprocity, to permanently carryout construction ac tivities in the Republic of Croatia under the same 
conditions as a contractor with permanent residence or registered office in the Republic of Croatia. 
The assumption of reciprocity referred to in paragr aph 1 of this Article do not apply to a foreign 
contractor who has registered office in state th at is a WTO Member or is a citizen thereof." 
According to transitional provisions of the Act, this  provision is valid also for persons from the EU 
Member States until Croatia became an EU Member State.  WT/TPR/M/227/Add.1 
 Page 45 
 
 
 QUESTIONS FROM CANADA  
Report by Croatia (WT/TPR/G/227) Part I. Introduction:  paragraph 5, page 5: 
The Government's report states that "Although the bord er issue with Slovenia held back the Accession 
negotiations in the course of 2009 Croatia is near ing the final stage of Accession negotiations with the 
EU.  Croatia expects that the accession negotiations as well as the technical work on drafting of the Accession Treaty will be finalised by the end of 2010";  and, 
Secretariat Report:  Summary Observations:  (2 ) Institutional Framework:  paragraph 9, 
page viii: 
The Secretariat's report states that "The orientation of Croatia's economic and trade policies are, […], 
largely driven by the goal of accession to the EU"; 
1. What is the current status of Croatia's a ccession discussions with the EU?  What are the key 
outstanding issues that remain to be resolved? 
Answer:
 
As regards the current status of the EU Accessi on negotiations, with the da te 16 March 2010 Croatia 
reports as follows:  
Since the opening of Accession negotiations in 2005 , 30 chapters have been opened out of which 
17 chapters have been provisionally closed.  In 2 chapters the verification of the fulfilled closing 
benchmarks is underway and in 11 chapters, Croatia is currently working on fulfilling the closing 
benchmarks.  Three Chapters still remain to be opene d. It is envisaged to open these chapters in the 
first half of 2010.  Two Chapters, which did not go through the screening process (Chapters 
"Institutions" and "Other"), remain for the end of ne gotiations (in line with the usual practice in EU 
accession negotiations).  
The key issues in the final stage of accession negotiati ons remain those pertaining to the chapters still 
to be opened, namely Competition Policy (e.g. re structuring of the shipyards in difficulty) and 
Judiciary and Fundamental Rights (reform of judiciar y, fight against corruption, rights of minorities, 
cooperation with ICTY).  In additio n, chapters with extensive EU acquis  (e.g. Agriculture, 
Environment) and financially and administrativ ely demanding chapters (Environment, Regional 
Policy and Coordination of Structural Instruments) are still to be closed.  In all chapters special 
emphasis will be given to the strengthening of the administrative capacity of the Croatian authorities and responsible bodies.  Croatia h as made substantive progress in mee ting the closing benchmarks in 
all chapters and has entered the final phase of accessi on negotiations.  This has been confirmed by the 
European Commission and EU Member states.  At this  stage closing of all the chapters is envisaged 
by the end of 2010. 
Part II. Economic Environment:  (iv) Internat ional competitiveness and internationalization:  
paragraph 21, page 8: 
This paragraph describes the impact of the globa l economic impact mainly on trade in goods.  WT/TPR/M/227/Add.1 
Page 46  
 
 2. Could Croatia please describe the impact of the global economic crisis on the services 
sectors? 
Answer:
 
Global economic crises had a strong negative ef fect on both domestic and foreign demand for 
domestic services, leading to a pronounced decline in  their production, although somewhat lower than 
in the manufacturing sector.  According to the seasonally adjusted gross value added (GVA) 
economic activity in domes tic service sector (excluding public ad ministration and other state provided 
services) started falling in the third quarter of 2008 and up to the fourth quarter of 2009 cumulative 
decline amounted approximately 6.5%.  Analysis of particular activities shows that this was primarily 
driven by a decline in retail and wholesale trade,  as well as in transport, storage and communication 
services.  Apart from that, GVA in hotels and restaurants fell only slightly, while financial 
intermediation and other business activities r ecorded even a slight growth of GVA.  
Regarding external trade in services3, fall in its exports (16%) and imports (12%) in 2009 was less 
severe than the fall in merchandise goods trade (22% and 27% respectively).  As a result, Croatia's 
surplus in services trade decreased by one fifth, while  merchandise trade deficit decreased by almost a 
third. Measured as a share of GDP, net revenues from goods' exports were reduc ed from -22.8 in 2008 
to -16.4 in 2009, while services' net export revenues fell from 14.7 to 12.5.  
Around 75% of the services exports in Croatia are related to travel services (foreign tourists' 
expenditure on accommodation, food and beverages,  entertainment, sightseeing, gifts and souvenirs 
etc.), while imports are more diversely distributed .  With a fall in global tourist demand in 2009, 
Croatian tourism sector was also adversely affected , although the effects are mixed.  On one hand the 
number of tourist arrivals and nights spent in  all commercial accommodation facilities (hotels, 
apartments etc.) fell only negligibly (-2,9% a nd -1,4%), with stronger fall within the group of 
domestic tourists, while the corresponding figures for foreign quests were only negligibly lower than 
in 2008 (a fall by -0,9% and -0,2%).  Next to it, gro ss value added in hotels and restaurants in the first 
three quarters of 2009 was 2,5% lower than in the same period previous year.  On the other hand, 
balance of payment data indicate that tourism re venues fell by 15%, due to a lower spending of 
foreign tourists, especially on extra-expenses (food,  beverage and entertainment), while expenses on 
accommodation fell by less.  
Part III. Economic Policy Priorities:  (2) Sector al Policies;  (iii) Forestry:  paragraph 42, 
page 13: 
The report states that "Apart from this, Croatia has re newed the certificate in line with the certification 
criteria of the Forest Stewardship Council (FSC) by  2011 for all state-owned forests (78%), which 
also facilitates placement on the market not only of logs but also of the products manufactured from 
certified raw materials; and, 
Secretariat Report: Part IV. Trade Policies by S ector:  (1) Agriculture and Related Activities; 
(i) Main features: footnote 15, page 76:  
Footnote 15 states that Croatia has certified a ll state-owned forests according to the Forest 
Stewardship Council criteria.  
                                                      
3 Based on balance of payments data.  WT/TPR/M/227/Add.1 
 Page 47 
 
 
 3. Croatia has noted that they have certified a ll state-owned forests according to the Forest 
Stewardship Council criteria.  Will the National For est Policy and Strategy of Croatia plan to analyse 
the potential competitiveness limitations  of having all their state-owned forests (78%) be in line with 
the certification criteria of the Forest Stewardship Council (FSC) by 2011?  
Answer:  
National Forest Policy and Strategy does not plan to analyse the potential competitiveness limitations 
of having all state-owned forests in line with the FSC certification criteria. 
4. Does Croatia recognize the Programme for th e Endorsement of Forest Certification (PEFC) 
International and FSC in their nationa l government procurement policies? 
Answer:  
Contracting authorities/entities may, according to Pu blic Procurement Act, base the award of public 
contracts on various criteria linked to the subject-ma tter of the public contract, for example, quality, 
price, technical merit, aesthetic and functional characteristics, environmental characteristics and the like.  Where contracting authority lays down envi ronmental characteristics it may use the technical 
specifications as defined by European, national, mu ltinational or other eco-labels, provided that:  
those specifications are appropriate to define the ch aracteristics of the supplies or services that are the 
object of the public contract, the requirements for th e eco-label are drawn up on the basis of scientific 
information, the eco-labels are adopted using a procedure in which all stakeholders, such as 
government bodies, consumers, manufacturers, dist ributors and environmental organisations can 
participate, and the eco-labels are acce ssible to all interested parties. 
Report by the Secretariat (WT/TPR/S/227)
 
Summary Observations:  (1) Economic Environment:  paragraph 5, page vii: The report states that "To improve the business envir onment still inhibited by several factors, notably 
difficulties in obtaining necessary licences, corrupti on and an inefficient public administration, the 
authorities have, inter alia, established the Trade and Investment Promotion Agency (APIU) and 
enacted the Investment Promotion Act".  
5. Could Croatia elaborate on the effectiveness of the above measures and how they have helped 
improve the business environment? 
Answer:
 
Founding and activating Trade and Investment Prom otion Agency (hereinafter:  Agency) enabled 
improvement in micro and macro business environmen t.  Since the Agency's activation in 2005, 
beginning of 2006, various tools for business environm ent improvement were developed.  Besides the 
Agency's activation, new Inv estment Promotion Act (OG 138/2006) was a clear sign to the 
international public, that the national government and the Republic of Croatia are open towards 
investments. 
The Agency itself contributed in developing bus iness climate in various ways.  Its successful 
promotional activities brought Croatian investment pot entials closer together with international 
economic auditorium.  Quality of service provided and its promotional activities placed the Agency in 
World's Top 25 investment agencies.  The rating was conducted by the World Bank among the pool of 181 investment promotion agencies in th e world, where the Agency was rated 24th. WT/TPR/M/227/Add.1 
Page 48  
 
 On local and regional national level the improvements are far more visible.  The Agency is recognized 
as the central place for investment facilitation an d promotion.  Regional team was founded and 
coordinated by the Agency and it is comprised of  representatives of regional agencies.  Through the 
Regional team, the Agency implements continuous educational programs for investment facilitation 
and promotion, and business environment development. 
The Agency is also involved in business (industr ial) zones development which are founded and 
developed throughout Croatia.  For development of larger business zones defined for attracting huge 
capital investments, the intention is to apply for EU  structural funds for infrastructure development. 
Besides investment promotion, another focus of  the Agency is export promotion.  The export 
promotion is facilitated through various educationa l programs, international presentations and real 
case to case assistances to the actual producers trying to export their products and services.  The 
Agency accomplished significant results in its export facilitation activities. 
Enactment of new Investment Promotion Act (OG 138/06) has introduced several measures in 
comparison to the Investment Promotion Act (OG 73/00) in order to improve business and investor environment.  New investment incentive sch eme is focused on production process activity, 
establishment of technology and innovation centr es as well as investments into business support 
activities.  For the last to investment activities, it also ensures an increase in support for new job 
creation which is calculated on the basis of regi stered unemployment rate of the region (county) 
where the investment is taking place.  New Act makes no difference between domestic and foreign investors, in the mining of priority in granting of incentive measures and grants them equivalent 
treatment. Investment incentives are now available even for existing companies, not strictly newly 
established ones.  Important change compared to the previous Act is also a significantly lower 
minimum threshold required for eligibility for in centive measures (from 4 mil HRK to 300.000 €).  
As a completely new measure, incentives for large investment projects - investment projects of 
significant economic interest were introduced, provi ding additional incentives for large investments in 
regions (counties) with registered unemployment rate exceeding 20%.  
It should also be mentioned that new Act on Inve stment Promotion defined all key provisions for 
complete alignment with the acquis communautaire  of the EU including the definition of eligible 
investment costs and maximum intensity of aid.  It  represents an instrument of regional development 
of Croatia, an instrument to increase regional co mpetitiveness as a main pillar of future overall 
economic development. 
Summary Observations:  (3) Trade Policy In struments:  paragraph 17, page ix:  
The report states that "Croatia's regime h as largely focused on export promotion […]".   
6. Given that Croatia is a net exporter of services, does this promotion include export of 
services? Could Croatia provide examples of such promotion in the services sector? 
Answer:
 
Tourism  
The promotion of Croatia's tourism is the compet ence of the Croatian National Tourist Board (NTO) 
which has its main office in Zagreb and a netw ork of representative offices abroad (two outside 
Europe - USA/ Canada and Japan and 17 in Europe , in Italy and Germany there are additional two 
offices to the main representative office).  WT/TPR/M/227/Add.1 
 Page 49 
 
 
 The cost of promotion is covered from differe nt sources:  National Budget (donation from the 
Ministry of Tourism), tourist tax, membership  fees and other sources (e.g. other donations). 
The Main office is responsible for the promotion of the country as a whole, but also of its numerous 
destinations and different tourism products.  Howe ver, destinations and to urism/hospitality companies 
may join with additional funds and be more intensely present with their own promotion at fairs and 
other communication channels.  For a number of years there is a system of co-promotion (business 
sector, destination and CNTB) which has been in tensified at the onset of the crisis (end 
2008/beginning of 2009) with more stronger commitm ent of all parties signing the contract for  
co-promotion which, actually, enabled a considerable  increase in the promotional funds since part of 
the promotion costs are covered by the private sector (e.g. tour operators, air carriers).  
Since 85 % of all tourists in Croatia are foreigners  and out of them 90% come from the EU countries, 
the distribution of representative offices follows our most important source markets (e.g. Germany 
and Italy are usually our number 1 and number 2 source markets). 
Additionally, last year Government temporarily suspended visas for the citizens of the Russian 
Federation and Ukraine (May 1-October 31) and this year Kazakhstan wa s added and temporary 
liberalization of the visa regime was additionally approved (in consultations with the EC) for the 
citizens of DR China, India, Jordan, and the Gulf  countries for the period April 1-October 31, 2010.  
Although this belongs to the category of travel  facilitation, it also additionally promotes the 
attractiveness of Croatia as a tourism country. 
Part I. Economic Environment:  (2) Recent Econ omic Developments:  p age 2, paragraph 7: 
The report states that Croatia's ambitious economic reform programme, focussed on trade 
liberalization, deregulation, and privatization, and has resulted in positive economic performance.  
7. How long is the economic reform programme sc heduled for?  What are the indicators by 
which Croatia considers it a success? 
Answer:  
The instruments and actions described in the Strategic Development Framework 2006-13 are 
aimed at the realisation of the following main  strategic goal:  growth and employment in a 
competitive market economy acting within a Euro pean welfare state of the 21st century.  This 
strategic goal may be achieved only by simultaneous and harmonised action in the following ten strategic areas:  people, knowledge and educatio n;  transport and energy infrastructure; science 
and IT technology;  social cohesion and just ice;  macroeconomic stability and openness;  
integrated financial services;  environmental protection and balanced regional development;  
entrepreneurial climate;  privatisation and restructuring and new role of the state. 
In each strategic area, the Strategic Development Framework 2006-13  defines a series of 
measures and actions that need to be undert aken to achieve the basic strategic goal. 
The application of policies from the Strategic Development Framework 2006-13  should have 
been resulted in an average increase of about 5% in the rate of economic growth in the period 
up to 2010, and above 7% after 2010. In this way, in 2013 average income per capita would 
reach 75% of the average in the EU measured in  terms of gross domestic product at purchasing 
power parity per capita. 
The goals Croatia wishes to achieve are develo pment and employment within the competitive 
economy and are the goals towards which all th e activities presented in the Strategy were WT/TPR/M/227/Add.1 
Page 50  
 
 aimed. There was no priority and no specially se lected economic entities for the fulfilment of 
this goal.   
At the time when this Strategy was written there were no signs of a recession and crises that 
influenced the Croatian economy.  In regard to all taken anti-recession measures during 2009 and 
2010, and having in mind existing challenges, the Government of Croatia prepared new guidelines for 
economic policy activities, i.e., measu res planned and goals expected. 
Maintaining macroeconomic stability, fostering ec onomic development and st rengthening investment 
activities are steps which will be achieved through  measures comprised in programmes for economic 
recovery and development. 
Part I. Economic Environment:  (3) Trade Performance and Investment:  (i) Trade in goods and 
services:  paragraph 12, page 4: 
The report states that "In commercial services trad e, Croatia ranked 25th among exporters and 47th 
among importers".  The report further goes on to show  that transport and travel are the top-ranked 
services for Croatia. 
8. In this context, what are the strongest markets for these two sub-sectors, and are there plans 
to increase the share of ot her services sub-sectors?  
Answer:
 
Balance of Payment data show that  exports of travel services, making-up the major part of revenues 
from services, relate to expenditure of foreign tour ists mostly from Germany, Italy, Austria, Slovenia 
(and other EU countries), Bosnia and Herzegovina a nd Serbia.  On the debit side, Croatian residents 
are mostly traveling to Bosnia and Herz egovina, Slovenia, Austria and Germany. 
Transportation services are traded mostly (around three quarters of total) with EU Member states, 
among which the most important partners are UK, Slove nia, Germany, Austria, Italy.  Next to them 
quite important is trade with Bosnia and Herzegovi na, and to a smaller extent with Switzerland, US, 
Canada, and various other countries.  
Among other services (apart from travel and transpor tation) the most traded are:  Telecommunication 
services, Architectural, engineering, and other technical services and Advertising, market research, 
and public opinion polling services and their geogr aphical breakdown is similar to above-mentioned 
(going mostly to and from EU and neighboring countries). 
Croatia has for years recorded su rpluses in the trade of transport services, among which the most 
important is freight transport.  On the export side , the greatest part of freight transport revenues is 
earned by sea transport, followed by road and rail transport, while on the expenditure side 
predominant is freight transport by road.  When it comes to the passenger transport, it is determined 
by revenues from passenger air transport (Croatia Airlines). 
When it comes to tourism, our top ten source ma rkets (ranked by the number of overnights) are: 
Germany, Italy, Slovenia, Austria, Czech Re public, Poland, the Neth erlands, Slovak Republic, 
Hungary and France. 
Most of the above mentioned sectors have a dopted sectoral strategies of development.  WT/TPR/M/227/Add.1 
 Page 51 
 
 
 Part I. Economic Environment:  (4) Outlook:  paragraph 24, page 11: 
The report states that Croatia has identified exports  "...as a major force underlying Croatia's future 
GDP growth", and for this reason has implemen ted the Croatian Export Offensive Strategy 2007-10 
as part of its Strategic Development Framework. 
9. How does this strategy work together with  the strategy of the Trade and Investment 
Promotion Agency (APIU)? 
Answer:  
The Export strategy is harmonized with the activ ities carried out by the Trade and Investment 
Promotion Agency.  As a partner institution in the implementation of the Strategy and Internationalisation programme, the Agency is very  actively involved in the implementation of the 
activities regarding promotion of Croatian economy on international markets.  
Part II. Trade and Investment Policy Framewor k:  (1) General Framework:  paragraph 14, 
page 16: 
The report states that the Croatian Export Offensive Strategy 2007-10 aims to "increase the number of 
exporting companies from 11,000 to 13,800, change the structure of Croatia's exports so as to 
quadruple the number of value-added exports, establish export-only clusters and increase 
competitiveness of local companies". 
10. What is the status an d progress of the Strategy?  
11. Has it changed "the structure of exports"?  12. What are the "export-only" clusters?  
Answer:
 
As an open economy in the globalisation processes, Croatia's main concern is  to ensure that its 
enterprises remain competitive within the global a nd EU Single market.  The difficulties of export 
oriented sector to accomplish stronger presence in foreign markets are still present.  The reasons are related to its competitiveness, its ability to innovate but also to the fact that inflow of green-field 
foreign direct investments has been very low.  
Successful export promotion is one of the key el ements of economic development especially in 
transition countries.  International activities reinfor ce the growth of enterprises, as they help them 
become more competitive.  For many entreprene urs national frontiers still represent a significant 
barrier to expanding their business, although the Eur opean Single market has made it easier than ever 
for small firms to do business in other Member States.  At the same time, the EU is also helping to open up opportunities for SME's beyond the Single Ma rket. Numerous studies demonstrate the direct 
link between internationalization and incr eased company's performance.  Pro-active 
internationalization reinforces growth, enhan ces competitiveness and supports the long term 
sustainability of companies.  In 2006 Croatian Govern ment made the strategic decision to set up more 
systematic and coherent support to  the internationalisation of Croatian economy.  Stronger presence in 
the global market and EU Single is both a challenge  and huge opportunity for Croatian companies.  
As a result of a broad dialogue with partner in stitutions, Croatian Chamber of Economy, Croatian 
Chamber of Trades and Crafts, Trade and Invest ment Promotion Agency, Croatian Employers' 
Association, Croatian Exporters, Croatian Bank for Reconstruction and develo pment and Ministry of 
Exterior Affairs and European Integration, Mini stry of the Economy, Labour and Entrepreneurship WT/TPR/M/227/Add.1 
Page 52  
 
 has launched a project "Croatian Export Offensive" th e first export strategy in January 2007.  With 
this strategic document, Government wishes to em phasize and strengthen the international presence of 
Croatian economy.  Based on the export strategy, the different activities and actions have been 
undertaken, financed partly by the national budge t through MELE and partly by IPA (support to 
cluster initiatives).  
The main goal of the export strategy is to solve the key problems related to the internationalisation 
strengthening, such as small capacities, fragmentatio n of production and low level of competitiveness 
in general.  Clusters are rec ognized as a tool for increasing the capacity and ability of SME's to 
achieve international competitiven ess.  Workshops which preceded the Strategy, defined 6 sectors 
with high export potential, which are suitable for ne tworking entrepreneurs in order to develop new 
products or create new global brand.  Important emphasi s is given to the establishment of six clusters:  
water, small shipbuilding, textile-clothing, ICT solutions, wood-furniture and mariculture-Croatian 
fish. 
Expected effects of the Strategy on the supported sectors are:  optimisation of production processes, 
improving the competitiveness at international level a nd increase exports in these sectors.  After three 
years of implementation, the most significant impact of the strategy is improved collaboration of all partners and stakeholders in s upporting internationalisation and creation of new measures such as:  
programs for export financing, support through horiz ontal measures for export oriented companies, 
information centre for exporters, strengthening of Croatian economic diplomacy and support to 
networking of entrepreneurs through clusters.  
This year, the implementation of the strategy is in a final phase.  Through this strategy various 
activities have been launched and the results will be seen only after certain period of time.  The follow 
up of the Strategy, with the more sectoral and market  oriented focus  for the next period of four years 
is in the preparation phase and a drafting of a new St rategy will be coordinated by the Ministry of the 
Economy, Labour and Entrepreneurship and Trade and Investment Promotion Agency (TIPA) in 
cooperation with all partner institutions.  
Part II. Trade and Investment Policy Framework:  (5) Aid for Trade:  paragraph 40, page 23: 
The report states that "...most of this aid has be nefited the economic infrastructure, particularly 
transport and storage; communications and energy supply and generation; as well as tourism". 
13. Could Croatia describe how the touris m sector was helped by this program? 
Answer:
 
A number of countries reached out and send some so rt of predominantly technical assistance to 
Croatia and its tourism sector.  For example Japa n sent an expert in 2002 to analyse the Croatian 
tourism sector and help it promote itself on the Japanese tourist market.  They also provided additional training to three experts (N TA and destinations) through JICA.  
Italy had a number of projects in Croatia, some of them funded based on the Italian Law No.84/01 
(e.g. TIC-Tourism Initiative Croatia
, performed in the Split-Dalmatia  County, assistance to develop 
integrated system of tourist offer;  Small, Big Hotels - assistance to the National Association of the 
Small and Family Hotels, aim – assist to increase  skills of the personnel, upgrade facilities and 
services, create unique market image).  Italy also pa rticipated in a number of EU funding programmes 
(INTERREG, CARDS, Phare now IPA). 
Norway also assisted a Croatian NGO (Croatian Cent re for Cleaner Production) to conduct education 
of hotels on environment protection (technical assistance).  WT/TPR/M/227/Add.1 
 Page 53 
 
 
 The tourism sector also benefitted in terms of infrastructure and sector development in the period 
from 2001-10 of the amount of 4 520 205.00 euro in  bilateral aid from Germ any, Belgium (Flanders) 
and Sweden.  If the relevant period is regarded as the period from 2006-10 the amount of the received 
bilateral aid would sum up to 1,979,205 euro.  
The German Government was also very active th rough DEG and GTZ, which participated in some 
Master Plan developments.  GTZ was more present and their assistance was not only technical, but 
also a financial one.  GTZ was particularly involved  in local/regional developments (parks of nature, 
reconstruction of heritage for to urism – e.g. wooden hoses of Po savina, further development of 
cycling tourism), including printing of handbooks, promotional materials etc. 
Flanders assisted through one project a number of counties and cities in utilizing their cultural 
heritage in tourism offer (development of managing such resources, benchmarking etc). 
The European Commission assisted in so many ways  and it would take so much time and space to 
enumerate.  A direct assistance to Ministry of To urism was within Phare 2005, when a team of EU 
experts helped to create a first draft of the Social  Tourism Strategy (should be incorporated into the 
overall tourism strategy, once it is finalized).  There are a number of projects executed on the 
regional/local levels through the CBC programmes (c ross-border cooperation) with the EU member 
states. 
These are just some of the exampl es, since there were too many countries/projects to enumerate them 
all. 
Part III. Trade policies and practices by measure:  (1) Measures Directly Affecting Imports:  
(i) Registration and documentation:  paragraph 4, page 25: 
The report states that "While electronic signatures are recognized in Croatia, all customs documents 
must be submitted on paper/in writing, which make them legally binding". 
14. Is Croatia considering implementing a paperl ess, legally binding electronic system for all 
customs documents in order to further facilitate the efficiency of transactions? 
Answer:  
In the process of Croatian accession to the EU, Croatian Customs Administration provides the 
introduction of the concept of E-customs as it is foreseen in the framework of European Commission 
planning.  
Part III. Trade policies and practices by measure:  (1) Measures Directly Affecting Imports:  
(v) Import licensing, controls, and prohibitions:  paragraph 39, page 40: 
The report states that "the importation of some products  (e.g. certain animals, plants, narcotics, arms, 
asbestos and ozone depleting substances) are pr ohibited for various reasons, such as health, 
environment, public security and order, cultural heritage or the fulfilment of international 
obligations". 
15. Could Croatia please provide a detailed lis t of all products that are prohibited for 
importation, including the specific reason for the prohibition of each product?  WT/TPR/M/227/Add.1 
Page 54  
 
 Answer:
 
Arms and rough diamonds For the purpose of fulfilling international commitmen ts, Croatia applies import restrictions and arms 
embargoes.  The restrictive measures imposed by  the corresponding UN Security Council resolutions 
are enforced due to the commitments  undertaken by the UN Charter,  as an international agreement 
which is, further to the provisions of Article 140 of  the Croatian Constitution, considered part of the 
internal legal order of Croatia with  the legal force above the law.  
The primary legislation regulating the introduction,  application and abolition of international 
restrictive measures is the Act on International Rest rictive Measures (OG 139/08).  Based on this Act, 
the Government of Croatia issues a decision on the introduction of restrictive measures, prescribing 
the application of the restrictive measures on a case-by-case basis and determining the type of the 
restrictive measure, the manner of its applicati on, the duration period and supervision of its 
application.  The decisions are published in the Official Gazette.  
Prior to the adoption of the Act on Internationa l Restrictive Measures, the Act on International 
Restrictive Measures OG 178/04 was in force.  The following restrictive measures adopted upon the 
Act on International Restrictive Measures OG 178/04 remain in force until the adoption of 
the decisions on their abolition:  Decision on the Implementation of Measures Imposed by Resolution 
1718 (2006) of the UN Security Council, Regarding Sanctions on the Democratic People's Republic 
of Korea (OG 24/07);  Decision on the Implementa tion of Measures Imposed by Resolutions 1556 
(2004), 1591 (2005), 1672 (2006), 1679 (2006) of the UN Security Council, with the List of 
Individuals Subject to the Measures Imposed by Pa ragraph 3 of Resolution 1591 (2005).  Regarding 
Sanctions Against the Republic of Sudan (OG 57/07)
;  Decision on the Implementation of Measures 
Imposed by Resolution 1747 (2007) of the UN Securi ty Council, with the List of Related Subjects, 
Regarding Sanctions on the Islamic Republic of Iran (OG 57/07) ;  Decision on the Implementation of 
Measures Imposed by Resolution 1737 (2006) of the UN Security Council, with the List of Related 
Individuals, Regarding Sanctions on the Islamic Republic of Iran (OG 57/07) ;  and Decision on the 
Implementation of Measures Imposed by Resolution 1803 (2008) of the UN Security Council, 
Regarding Sanctions on the Isla mic Republic of Iran (OG 68/08) .  
In addition to the abovementioned rest rictions, i.e. prohibition of import,  Croatia, as a participant to the 
Kimberley Process Certification Sc heme, enforces prohibition of import of rough diamonds, excepting 
import of rough diamonds accompanied by the Certif icate issued by the aut horities of the country 
exporter. 
Furthermore, the import of weapons is prohibited acco rding to Article 7, Paragraph 1, Item 1 of the 
Weapons Act (OG 63/07).  These weapons are category A weapons and cold weapons whose primary purpose is to attack or hurt and cold weapons ca rried in public places.  Any means whose primary 
purpose is to attack or hurt, i.e. any means that  cannot be used for anything else but to hurt, are 
considered prohibited weapons.  
Chemical weapons 
According to the Convention on Prohibition of th e Development, Production, Stockpiling and Use of 
Chemical Weapons and on Their Destruction (OG – IA  4/95), transfer of substances indicated in the 
Regulation specifying goods subject to export and import licences (OG 6/2009, 73/2009, 27/2010), 
Annex III.  (List of substances subject to contro l pursuant to the Convention on Prohibition of the 
Development, Production, Stockpilin g and Use of Chemical Weapons and on Their Destruction) – 
List 1 of the Convention, are allowed only if tho se substances are used for research, pharmaceutical, 
medicinal or protection purposes, and if th eir quantity does not exceed 1 ton (1000 kg).  WT/TPR/M/227/Add.1 
 Page 55 
 
 
 Chemicals (Ministry of health and social welfare) 
Products (chemicals) prohibited fro m importation due to health reasons are listed in the List of 
dangerous chemicals whose marketing is  prohibited or limited (OG 17/06). 
Mentioned List contains provi sions on following products:  
- Asbestos fibers - Krocidolit, Amozit, Anthophyllite , Actinolite, Tremolite -placing on the market  or 
use as a substance or in a product is prohibited 
- Monometil-tetraklorodifenil methane;  Ugilec 1 41 for which placing on the market or use as a 
substance or in a product is prohibited 
- Monometil-dichloro-diphenyl methane;  Ugilec 121for which placing on the market or use as a 
substance or in a product is prohibited 
- Monometil-Dibromo-diphenyl methane for which  placing on the market  or use as a substance or in 
a product is prohibited. 
Definition "marketing" includes import of thos e substances or products  which contain those 
substances (Article 2 point 17 of the Chemicals Act (OG 150/05 and 53/08)) 
Border sanitary inspectors are authorised to ban import of any substance or product which does not 
fulfill prescribed legal conditions.  
Mentioned list is harmonised with the Directive 76/ 769/EEC of 27 July 1976 on the approximation of 
the laws, regulations and administra tive provisions of the Member States relating to restrictions on the 
marketing and use of certain dange rous substances and preparations. 
Live animals and product of animal origin  
As regards import of live animals and products of anim al origin as well as plant products (specifically 
seeds and seedlings) restrictions on import are intr oduced only exceptionally in the case of outbreak 
of disease in accordance with recognized ve terinary and phytosanitary practices.  
Current restrictions: 
Animals and products of anim al origin Disease related Official Gazette No. where the ordinance is 
published and the country involved 
1. a) live domestic ungulates (bovines, 
ovine, caprine and swine) and wild ungulates; 
b) semen from domestic and wild 
ungulates; 
c) embryo/ovary cells from domestic and 
wild ungulates; 
d) fresh and frozen m eat  form domestic 
and frozen ungulates; 
e) products of animals origin/meat from domestic and wild ungul ates that did not 
undergo production procedure that could 
guarantee that foot and mouth disease 
virus is destroyed. 
f) products of animal origin (from 
ungulates) for human consumption, Foot and mouth disease 
 OG 110/2009 
 Does not apply to import of certain categories 
of meat as regulated from the following 
countries: Falkland Irelands, Greenland, 
Argentina (certain regions), Botswana 
(certain regions), Brazil (certain regions),  
Republic of South Africa(certain regions) , 
Namibia (certain regions ), Paraguay (certain 
regions), Swaziland (certain regions) , 
Uruguay (certain regions) , Argentina (certain 
regions), Botswana (certain regions), Russia 
(certain regions) 
 
The restrictions do not apply to the shipments WT/TPR/M/227/Add.1 
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 Animals and products of anim al origin Disease related Official Gazette No. where the ordinance is 
published and the country involved 
animals' consumption or for agriculture, 
or use in industry, animal feed and 
vegetables' mulch (straw).  
g) products of animal origin (from 
ungulates) for pharmaceutical or medical 
(surgery) use;  
h) biological products that are not sterile. originating from the following countries: 
Albania, Australia, Austria, Belarus, 
Belgium, Belize, Bosnia and Herzegovina, 
Brunei, Bulgaria, Cyprus, Montenegro, 
Check Republic, Chile, Denmark, Dominican 
Republic, Estonia, Finland, France, Greece, Guatemala, Guayana, Haiti, Honduras, 
Indonesia, Ireland, Isla nd, Italy, Japan, 
Canada, Costa Rica, Cuba , Latvia, Lithuania, 
Luxemburg, Madagascar, Hungary, 
Macedonia, Malta, Ma uritius, Mexico, 
Nicaragua, Netherlands, Norway, New 
Caledonia, New Zealand,  Germany, Panama, 
Poland, Portugal, Republic of Korea, 
Romania, San Salvador, Singapore, USA, 
Slovakia, Slovenia, Se rbia, Kosovo, Spain, 
Sweden, Switzerland, UK, Ukraine, Vanuatu. 
2. a) live domestic and wild pigs; 
b) semen of  domestic and wild pigs; c) embryo/ovary cells from domestic and 
wild pigs; 
d) fresh meat of domestic and wild pigs; 
e) products from meat  of domestic and 
wild pigs that were not processed to the 
final product on the way that ensures 
absence of the Swine vesicular disease 
virus; 
f) products of animal origin (from swine) 
for agriculture, or use in industry or other use but were not processed on the way 
that ensures absence of the Swine 
vesicular disease virus; Swine vesicular disease OG 23/2010 
Restriction applies onl y to Italy's regions 
g) products of animal origin (from swine) 
forpharmaceutical or medicinal (surgery) 
use and were not processed in the way 
that ensures absence of the Swine 
vesicular disease virus; 
h) pathological mate rial and biological 
products (from swine) that were not 
processed in the way that ensures 
complete destruction of the Swine 
vesicular disease virus.   
3. a) live domestic and wild pigs; 
b) semen of  domestic and wild pigs; 
c) embryo/ovary cells from domestic and 
wild pigs; Classical swine fewer OG 96/2009 
Germany/regions, France/regions, 
Hungary/regions, Slovakia /regions, 
Lithuania/regions. Bulgaria Romania 
4. a) live domestic and wild pigs; 
b) semen of  domestic and wild pigs; 
c) embryo/ovary cells from domestic and 
wild pigs; 
d) meat of domestic  and wild pigs; 
e) products from meat of domestic and 
wild pigs that were not processed to the 
final product on the way that ensures 
absence of the Classical swine fewer 
virus; 
f) products of animal origin (from swine) 
for agriculture, or use in industry or other 
use but were not processed on the way 
that ensures absence of the Classical Classical swine fewer OG 68/2009 
Applies to certain non-EU countries 
Serbia, Montenegro, Bahrain, Botswana, 
China, Colombia, Ethiopia, Ecuador, Hong 
Kong, China, Israel, In dia, Island, Kenya, 
Morocco, Madagascar, Macedonia, 
Mauritius, Namibia, Singapore, Swaziland, 
Thailand, Tunisia, Uruguay, Zimbabwe, 
Argentina, Brazil, Byelorussia, Paraguay, 
Russia, Republic of South Africa 
  WT/TPR/M/227/Add.1 
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 Animals and products of anim al origin Disease related Official Gazette No. where the ordinance is 
published and the country involved 
swine fewer virus; 
g) products of animal origin (from swine) 
for pharmaceutical or medicinal (surgery) 
use  and were not processed in the way 
that ensures absence of the Classical 
swine fewer virus; 
h) pathological material and biological 
products (from swine) that were not  
processed in the way that ensures 
complete destruction of the Classical 
swine fewer virus; 
2) Ordinance apply also on the domestic 
and wild swine that origin from the 
another states but were in transit through 
the states for which this Ordinance apply. 
3. Certain meat produc ts, treated stomach, 
bladders and casings intended for human 
consumption.   OG 66/2009 
Export to Croatia allowed from certain non-
EU countries 
List of countries differs according to the 
products covered and applied methods of 
processing 
4. a) live domestic and wild ungulates; 
b) embryo/ovary cells from ungulates; 
C) SEMEN FOR ARTIFICIAL 
INSEMINATION OF UNGULATES; Blue tongue disease OG 23/2009  
Applies to certain EU Member States 
Italy (certain regions), Cyprus, Greece 
(certain regions), Austria (certain regions), 
Belgium, Czech Republic, Denmark, 
Germany (certain regions), France (certain 
regions), Hungary (certain regions), Luxemburg, Poland (c ertain regions), 
Romania (certain regions), Sweden (certain 
regions), Slovakia (certain regions), United 
Kingdom, Malta, Portugal (certain regions), 
Spain, (certain regions), Netherlands   
5. Live hoofed animals Presence of contagious 
diseases in Bosnia and 
Herzegovina OG 23/2009 
Applies to Bosnia and Herzegovina. Does not 
apply for horses intended for sports 
manifestation & temporary import. 
6. a) live poultry, ratites (kiwi, emu, 
Rhea, ostrich), farmed and wild poultry; b)day-old chicks; 
c) hatching and consumer eggs; 
d) fresh and frozen meat from poultry, 
ratites, farmed and wild poultry; 
e) products of  meat from poultry, ratites , 
farmed and wild poultry; 
f) products of animal origin (from 
poultry) for animal feed, industry and use 
in agriculture. Newcastle disease 
 OG 23/2010 
Cyprus, Dominican Republic , Honduras, Israel, China, Mexico, Romania – Gorj 
region, Russia 
 
7. Live fish, eggs and gametes for 
farming,  
and for restocking of put and take 
fisheries    OG 133/2009 
List of the non-EU countries from which 
import to Croatia is allowed. 
List of countries differs according to covered 
categories and conditions of farming 
8. a) live poultry, ratites (kiwi, emu, 
Rhea, ostrich), farmed and wild poultry, 
all birds, inclusive birds as pet; 
b)day-old chicks; 
c) hatching and consumer eggs; 
d) semen from poultry, ratites and wild 
poultry; Avian influenza OG 130/2009 
 Applies to certain non-EU countries 
Afghanistan, Bangladesh, Benin, Burma, 
Chile, Egypt, Hong K ong, China, India, 
Indonesia, Iraq, Iran, Cambodia, China, Laos, 
Nigeria, Pakistan, Russia, Saudian Arabia, 
Sudan, Thailand, Togo, Ukraine, Vietnam WT/TPR/M/227/Add.1 
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 Animals and products of anim al origin Disease related Official Gazette No. where the ordinance is 
published and the country involved 
e) fresh and frozen meat from poultry, 
ratites, farmed and wild poultry; 
f) products of  meat from poultry, ratites , 
farmed and wild poultry; 
g) products of animal origin (from 
poultry) for animal feed, industry and use 
in agriculture. 
h) not treated hunting trophies from all 
birds and not treated  feather or part of 
feather.  
9. a) live domestic and wild ruminants; 
b) embryo/ovary cells from  ruminants; 
c) semen for artificial insemination of 
ruminants; Blue tongue disease OG 66/2008  
 
Albania, Algiers, Bosnia and Herzegovina, 
Brazil, Montenegro, Dominican Republic, 
Israel, Republic of S outh Africa, China, 
Macedonia, Morocco, Mexico, Namibia, 
Panama, Paraguay, Peru, Serbia, Tunis, 
Turkey, Italy (certain regions), France 
(certain regions), Czech Republic (certain 
regions), Denmark (certain regions), Poland 
(certain regions), United Kingdom (certain 
regions), Portugal (certain regions), Spain 
(certain regions), Cyprus, Belgium, Germany, 
Luxembourg, Netherland, Malta 
10. live animals and products of animal 
origin for human consumption and for 
animal feed.  OG 94/2007  
Applies to China. Prohibition does not apply 
to: certain fisheries products, gelatin, and 
feed for pets (speci al condition from OG 
56/2006). 
11. Products of animal origin  OG 02/2010  
Specifies compulsory me thods of testing for 
products exported to Croatia 
12. Particular meat products, treated stomachs, bladders and casings for human 
consumption.  OG 22/2010 
 
List of countries differs according to the 
products covered and applied methods of 
processing 
PLANTS, PLANT PRODUCTS AND OTHER REGULATED OBJECTS THE INTRODUCTION 
OF WHICH INTO THE REPUBLIC OF CROATIA IS PROHIBITED  
Description  Country of origin  Official Gazette no. where the 
Ordinance is published  
1. Plants of Abies Mill., Cedrus Trew, Chamaecyparis Spach, 
Juniperus L., Larix Mill., Picea A. 
Dietr., Pinus L., Pseudotsuga Carr. 
and Tsuga Carr., other than fruit and 
seeds  Non-European countries  
2. Plants of Castanea Mill. and 
Quercus L., with leaves, other than 
fruit and seeds  Non-European countries  
3. Plants of Populus L., with leaves, 
other than fruit and seeds  North American countries  
– – –  – – –  
5. Isolated bark of Castanea  Mill.,  Third countries  OG 74/06 
 
Ordinance on measures against the 
introduction and spread of  organisms 
harmful to plants, plant products and 
other regulated objec ts, and measures 
to control these organisms 
 
Annex III Part A 
  WT/TPR/M/227/Add.1 
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 Description  Country of origin  Official Gazette no. where the 
Ordinance is published  
6. Isolated bark of Quercus L., other than Quercus suber L.  North American countries  
7. Isolated bark of Acer saccharum 
Marsh.  North American countries  
8. Isolated bark of Populus L.  C ountries of the American continent  
9. Plants of Chaenomeles Ldl., 
Cydonia Mill., Crataegus L., Malus 
Mill., Prunus L., Pyrus L., and Rosa 
L., intended for planting, other than 
dormant plants free from leaves, 
flowers and fruit  Non-European countries  
9.1. Plants of Photinia Ldl., intended 
for planting, other than dormant 
plants free from leaves, flowers and 
fruit  USA, China, Japan, the Republic of 
Korea and Democratic People's Republic 
of Korea  
10. Tubers of Solanum tuberosum 
L., seed potatoes Third countries other than Switzerland  
11. Plants of stolon- or tuber-
forming species of Solanum L., or 
their hybrids, intended for planting, 
other than those tubers of Solanum 
tuberosum L. as specified in item 10 
of this part of the List Third countries  
12. Tubers of species of the genus 
Solanum L., and their hybrids, other 
than those specified in items 10 and 
11 of this part of the List  Without prejudice to the special 
requirements applicable to the potato 
tubers listed in List IV, Part A Section I, 
third countries other th an Algeria, Egypt, 
Israel, Libya, Morocco, Syria, 
Switzerland, Tunisia and Turkey, and 
other than European third countries 
which are either recognised as being free 
from the harmful organism Clavibacter 
michiganensis ssp. sepedonicus 
(Spieckermann et Kotthoff) Davis et al. or in which officially approved measures 
to control the harmful organism 
Clavibacter michiganensis ssp. 
sepedonicus (Spieckermann and 
Kotthoff) Davis et al. are being taken.  
13. Plants of the family Solanaceae, 
intended for planting, other than 
plants specified in items 10, 11 and 
12 of this part of the List  Third countries, other than European and 
Mediterranean countries  
14. Soil and growing medium as 
such, which consists in whole or in part of soil or solid organic 
substances such as parts of plants, 
humus including peat or bark, other 
than that composed entirely of peat  Turkey, Belarus, Moldavia, Russia, 
Ukraine and third countries not belonging to continental Europe, other than Egypt, 
Israel, Libya, Morocco, Tunisia  
15. Plants of Vitis L., other than 
fruits  Third countries other than Switzerland  
16. Plants of Citr us L., Fortunella 
Swingle, Poncirus Raf. and their 
hybrids, other than fruit and seeds Third countries   WT/TPR/M/227/Add.1 
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 Description  Country of origin  Official Gazette no. where the 
Ordinance is published  
17. Plants of Phoenix spp., other than fruit and seeds  Algeria, Morocco  
18. Plants of Cydonia Mill., Malus 
Mill., Prunus L. and Pyrus L. and 
their hybrids, and Fragaria L., 
intended for planting  Without prejudice to the prohibitions 
applicable to the plants listed in item 9 of 
this part of the List, where appropriate, 
non-European countries, other than 
Mediterranean countri es, Australia, New 
Zealand, Canada and the continental 
states of the USA  
19. Plants of the family Poaceae (Gramineae), intended for planting, 
other than ornamental perennial 
grasses of the subfamilies 
Bambusoideae and Panicoideae and 
of the genera Buchloe, Bouteloua 
Lag., Calamagrostis, Cortaderia 
Stapf., Glyceria R. Br., Hakonechloa 
Mak. ex Honda, Hystrix, Molinia, 
Phalaris L., Shibataea, Spartina 
Schreb., Stipa L. and Uniola L.  Third countries, other than European and 
Mediterranean countries   
 
Nature and cultural goods protection 
Articles 101 to 103 of the Nature Protection Act (OG 70/05 and 139/07) and the Ordinance on 
Transborder Movement Traffic and Trade in Prot ected Species (OG 72/09) provides for the procedure 
and conditions for issuing the entry, exit, export or import permit from the sea and trade in wild species protected pursuant to nature protection regulations. 
Furthermore, Articles 21, 22 and 23 of the Ordina nce on Transborder Movement Traffic and Trade in 
Protected Species provides for protection of import of certain animal species, their parts and 
derivatives, as well as conditions providing for excep tions from such prohibition.  The list of species 
and derivatives to which the prohibitions apply is listed in Annex VI, Annex VII-Chapters 1 and 2 and 
Annex X of the Ordinance (enclosed). 
Article 70 of the Act on Protection and Preservati on of Cultural Goods (OG 69/99, 151/03, 157/03 
and 87/09) provides for import and entry of cultura l goods in Croatia conditioned by the consent of 
the country from which they are imported or entered.   The importer of the cultural good or the person 
entering the cultural good shall notify the cultural value to the competent conservation department 
without delay.  
Environment 
As of January 1st 2006 import intended for placi ng on the domestic market is prohibited for: 
- controlled substances from Annex A, Group I and Annex B, Group I:  chlorofluorocarbons (CFCs), 
Annex C, Group I Hydrobromofl uorocarbons (HBFC) and methyl  bromide (annexes from The 
Montreal Protocol on Substances That Deplete the Ozone Layer), 
- products from Annex A, Groups I and II and Annex B, Groups I, II and III;  Annex C, Groups I, II 
and III (annexes from The Montreal Protocol on Substances That Deplete the Ozone Layer).  WT/TPR/M/227/Add.1 
 Page 61 
 
 
 Placing on the Croatian market is prohibited for : 
- batteries and accumulators which contain more than 0,0005% (mass) of mercury including such 
batteries and accumulators build in devices except button cells with mass content of mercury lesser than 2% 
- portable batteries or accumulators which contain mo re than 0,002% of cadmium by mass including 
such that are build in devices except batteries and ac cumulators that are intended for use in security 
and alarm systems, medical equipment and wireless electric tools  
- EE equipment which contains lead, mercur y, cadmium and hexavalent chromium Cr
6+ 
polybrominated biphenyls (PBB) or polybrominate d diphenyl ethers (PBDE), with exceptions 
prescribed by the Ordinance on the management of waste electrical and electronic appliances and 
equipment. (OG 74/07, 133/08, 31/09, 156/09) 
- motor vehicles and replacement parts whose ma terials and components contain lead, mercury, 
cadmium and hexavalent chromium, with exceptions prescribed by the Ordinance on the management of end-of-life vehicles (OG 136/06, 31/09, 156/09) 
- PCBs and equipment containing PCBs if the fluid c ontains more than 0,005% PCBs by weight, after 
31 December 2010, 
- packaging containing materials and hazardous subs tances in quantities and/or concentrations that 
could adversely affect human health and/or the environment. 
16. Does Croatia anticipate amendments to curren t legislation governing import prohibitions if 
said legislation is not in line with EU legislation? 
Answer:  
Dangerous chemicals 
Continuation of the implementation of the new EU  legislation is foreseen in I quarter 2010 by 
adopting List of dangerous chemicals whose marke ting is prohibited or limited in accordance with the 
Annex XVII of the REACH Regulation (restrictions on the manufacture, placing on the market and use of certain dangerous substances, preparati ons and articles) and Commission Regulation (EC) 
No. 552/2009 of 22 June 2009 amending Regulation (E C) No. 1907/2006 of the European Parliament 
and of the Council on the Registration, Evaluation,  Authorisation and Restriction of Chemicals 
(REACH) as regards Annex XVII. 
Nature and cultural goods protection Nature Protection Act and the Act on Protection a nd Preservation of Cultural Goods are in line with 
the EU – legislation and further am endments regarding the issue are not  required.  However, if there 
would be changes in the EU legislation, Croatia will subsequently make am endments to its national 
legislation. 
The Ordinance on amendments to the Ordinance on the Transboundary Movement and Trade in 
Protected Species should be adopted by the end of 2010, so as to ensure that the Croatian legislation is 
in accordance with Commission Regulation (EC) No. 407/2009 of 14 May 2009 amending Council 
Regulation (EC) No. 338/97 on the protection of sp ecies of wild fauna and flora by regulating trade 
therein and Commission Regulation (EC) No. 359/2009 of 30 April 2009 suspending the introduction 
into the Community of specimens of certain species of wild fauna and flora. WT/TPR/M/227/Add.1 
Page 62  
 
 Plant products, animal and product of animal origin 
Croatian legislation regarding impor t prohibition of plants, plant products and other regulated objects, 
animals and product of animal origin is in line with the EU legislation. 
Environment Croatian legislation is harmonized with the EU acquis. Part III. Trade Policies and Practices by Measure:  (1) Measures Directly Affecting Imports:  
(vii) Standards and other technical requireme nts:  (c) Standardization, testing, and 
certification:  paragraph 53-54, Page 43: 
Canada notes efforts by Croatia as stipulated in pa ragraph 51 to 53 to meet its WTO/TBT obligations.  
The report in paragraph 54 states that "Technical regulations in Croatia are developed by various 
Central State Administration Bodies.  The heads of  these government bodies adopt, according to their 
competence and scope of activities, technical regulations and determine conformity assessment procedures.  All new technical regulations are publis hed in the Official Gazette."  Canada further 
notes in paragraph 53 that Croatia "has submitted 38 notifications to the TBT Committee (up to 
September 2009), almost all concerning regulatio ns on metrological requirements."  The last 
notification was submitted in 2003.   
17. Could Croatia provide further information on measures or steps it is enacting to overcome 
perceived challenges so as to facilitate notification of draft trade-related measures, in particular 
trade significant technical regulations issued by the various Central State Administration bodies, at 
an early appropriate stage when amendments can still be introduced and comments taken into 
account pursuant to WTO TBT Agreement and Recommended transparency procedures 
(G/TBT/1/Rev.9)? 
Answer:
 
In 1991, the State Office on Standardization and Me trology (DZNM), under the Ministry of Science, 
was established as the overarching body responsible for metrology, accreditation, standardization and 
certification.  In July 2005, the functions of st andardization, accreditation and metrology were legally 
and administratively separated and the DZNM was re placed by four new inde pendent institutions.  
One of them, the Croatian Standards Institute (H ZN) is the national standards body and acts as the 
TBT enquiry point  
From 1998 until 2005 the State Office on Standardiz ation and Metrology (DZNM) was Enquiry Point 
and the Notification Point foreseen in Articles 10.1 and 10.2 of the TBT Agreement.  After 
establishing the new organisation structure of the four  new independent institutions the question of the 
TBT notifications remained open.  Few notificati ons were sent by the HZN and others from the 
Ministry of Economy, Labour and Entrepreneurship, especially related to the trade related laws and 
regulations. 
Croatia intends to notify the new TBT notification aut hority in the near future.  We estimate important 
to emphasise as it was pointed out in the WTO S ecretariat Report, no specific trade concerns have 
been raised in the TBT Committee regarding Croatia .  Croatia has requested technical assistance from 
the WTO regarding notifications. In line with th is a seminar on notifications is provisionally 
scheduled for May 18-20 2010.  WT/TPR/M/227/Add.1 
 Page 63 
 
 
 Part III.  Trade Policies and Practices by Measure:  (2) Measures Directly Affecting Imports:  
(vii) Standards and other technical re quirements:  paragraph 57, page 44: 
18. In addition to its existing mutual recognition agreements, could Croatia please advise, what 
steps, if any, the Croatian Accreditation Agency (HAA) is taking to join the International 
Accreditation Forum (IAF) and the International Laboratory Accreditatio n Cooperation (ILAC)? 
Answer:  
HAA is an associate member of ILAC since 2002.  HAA will apply for full membership in ILAC in 
2011 after signing EA MLA (European co-operatio n for Accreditation Multilateral Agreement), 
which is expected to be concluded in 2010. HAA  will apply for IAF membership in 2011 as well, 
after signing the EA MLA, which is expected to be concluded in 2010.  Namely, peer evaluation 
process is in the very last phase for all the accred itation schemes (testing, calibration, and inspection, 
certification of products, persons and management systems (QMS & EMS)). 
Part III.  Trade Policies and Practices by Measure:  (2) Measures Directly Affecting Imports:  
(vii) Standards and other technical re quirements:  paragraph 58, page 44: 
According to the report "Conformity with technica l requirements may be certified through a supplier 
declaration of conformity (first party), or certificate of conformity (third party)". 
19. Could Croatia please explain the criteria that are used to determine whether first or third-
party conformity assessment is used in assessing conformity to a given technical requirement? 
Answer:  
The criteria that are used to determine whether firs t or third-party conformity assessment is used in 
assessing conformity to a given technical requirement are primarily connected with placing of the 
product on the market and/or making it available on the market.  
The criteria are based on horizontal legislation, name ly:  Obligation Act (OG 35/05, 41/08);  Act on 
Technical Requirements for Products and on Confor mity Assessment (OG 20/10);  Ordinance on the 
conformity marking for products (OG 46/08);  as well as on particular sectoral legislation. 
Part III. Trade Policies and Practices by Measure:  (1) Measures Directly Affecting Imports:  
(vii) Standards and other technical requirements:   (c) Sanitary and phytosanitary measures:  
paragraph 68-69, page 46: 
Canada recognizes efforts by Croatia to meet its WT O obligations with respect to the establishment of 
three distinct enquiry points and the notification au thority.  However, Canada further notes that the 
Secretariat's report states that "Croatia has neve r submitted an emergency notification to the SPS 
Committee and only one notification con cerning new or modified SPS measures." 
20. Could Croatia elaborate on systems/met hods it is putting in place to overcome past 
challenges with compliance to WTO SPS transparen cy obligations, in particular notification of a 
draft measure when comments can still be ta ken into account and notification of emergency 
measures? 
Answer:  
In order to ensure quality and timeliness of SPS notifications Croatia has requested technical 
assistance from WTO Secretariat on notification proce dure.  The seminar on SPS notifications will be WT/TPR/M/227/Add.1 
Page 64  
 
 organised for government officials directly involved in the notification activities, covering food 
safety, sanitary and phytosanitary issues as well as  requirements on public and animal health.  The 
seminar will take place in May 2010.  A gained know ledge will serve to fulfil obligations concerning 
the notifications of all SPS regulations that  could have a significant effect on trade. 
Part III. Trade Policies and Practices by Measure:  (1) Measures Directly Affecting Imports:  
(viii) Public procurement:  paragraph 82, page 50: 
The report notes that Croatia is yet to ini tiate procedures for membership in the GPA. 
21. Could Croatia please indicate when it plans  to begin the process of accession to the GPA? 
Answer:
 
Croatia is fully aware of its commitment assumed in the course of its accession negotiations to WTO 
related to joining the Agreement on GPA.  As GP A is currently undergoing a review, negotiations for 
the revised GPA are under way and the final text, as we ll as the coverage, is still to be determined, at 
this stage Croatia deem it difficult to accede to GPA that is not yet completed and fully defined.  Therefore, the accession to GPA could be foreseen for the period after the conclusion of GPA negotiations.  
Part III. Trade Policies and Practices by Measure:  (1) Measures Directly Affecting Imports:  
(viii) Public procurement:  paragraph 83, page 51: 
The report notes that "The regulation on public pr ocurement […] by public entities abroad, such as 
embassies and consulates will be regulated by secondary legislation to be adopted in 2010". 
22. Could Croatia clarify the rationale for re quiring secondary legislation to regulate the 
procurement by public entities abroad? 
Answer:
 
Ordinance on public procurement for the purposes of Croatian diplomatic missi ons and consular posts 
abroad shall regulate the conditions for the award of contract and procedures of public procurement of 
services, goods and works that are implemented in  diplomatic missions and consular offices of 
Croatia abroad. 
This Ordinance will be compliant with all provisi on of EC Directives for contracts to be awarded 
equal or above the relevant EU thresholds.  For contracts bellow these thresholds the Ordinance will 
introduce some new procedures different and more fl exible from the ones in the Public Procurement 
Act, taking into account the specific situations and problems when diplomatic and consular offices of 
Croatia are procuring abroad.  Those procedures which will lead to award of contracts will comply with the rules and principles of the EC Treaty, i.e. of the free movement of goods, the right of 
establishment, the freedom to provide services, non- discrimination and equal treatment, transparency, 
proportionality and mutual recognition, as well as with  the practice ECJ has developed for the award 
of public contracts and which derive directly from th e rules and principles of the EC Treaty, such as 
an obligation of transparency - a degree of advertising sufficient to enable the services market to be 
opened up to competition , and the impartiality of the procedures to be reviewed .  Having in mind the 
above mentioned , companies (other then HR) from EU memb er states and third countries shall in no 
way be excluded from the award of those contracts.  WT/TPR/M/227/Add.1 
 Page 65 
 
 
 Part III. Trade Policies and Practices by Measure:  (1) Measures Directly Affecting Imports:  
(viii) Public procurement:  paragraph 84, page 51: 
The report states that "Under the new PPA, the pro cedures to award contracts (public works, public 
goods, and public services) are:  (i) open procedures;   (ii) restricted procedures;  (iii) negotiated 
procedures (with or without prior publication);  (iv)  competitive dialogue;  and (v) design contests.  
The contracting authorities may choose freely between  open and restricted procedures" and that "In 
restricted procedures any economic operator may re quest to participate, and only those economic 
operators invited by the procuri ng authority may submit a tender." 
23. Under restricted procedures, could Croatia  clarify the measures and rules governing how 
procuring authorities can select which economic  operators are invited to submit a tender? 
Answer:  
Economic operators who have, further to the contract notice, submitted their requests to participate in 
the restricted procedure in good time, and who have  demonstrated their suitability in accordance with 
the Public Procurement Act, shall be provided an  opportunity to participate in the restricted 
procedure.  After the assessment of the suitability of each candidate the contracting authority shall 
forward the decision on the inadmissibility of their pa rticipation to all candidates who have not proved 
their suitability and that are not to be invited to  submit a tender.  The number of candidates who will 
receive an invitation to tender shall be determined in advance (published by the contracting authority 
in the contract notice) and in accordance with the subject-matter of procurement.  The number of 
economic operators to be invited by the contracti ng authority shall be sufficient to ensure genuine 
competition.  The rules which the contracting auth ority intends to apply shall be objective and non-
discriminating and they shall be included in the co ntract notice.  If there are a sufficient number of 
suitable economic operators, the number of candidates to  be invited by the contracting authority shall 
not be less than five.  If the contracting authority determines that the number of suitable candidates is 
greater than the published number of candidates to receive an invitation to tender, the contracting 
authority may invite all of them or select the ca ndidates amongst the suitable candidates in line with 
the number and the objective and non-discriminating rules it intends to apply.  
24. Could Croatia elaborate on whether and, if so , which information must be provided by 
contracting authorities to justify the use of restricted procedures? 
Answer:  
Contracting authorities may freely choose between open and restricted procedure for awarding public 
contracts.  There is no obligation for contracting auth orities to justify the use of restricted procedure. 
Part III. Trade Policies and Practices by Measure:  (1) Measures Directly Affecting Imports:  
(viii) Public procurement:  paragraph 84, page 51: 
The report states that "in negotiated procedures the procuring authorities consult the economic 
operators of their choice and negotiate the term s of contract with one or more of these". 
25. Under negotiated procedures, could Croatia elaborate on whether the exhaustive list of cases 
justifying negotiated procedures under the PPA is cons istent with the list of cases justifying limited 
tendering under Article XV of the GPA?  For any ca ses that are not consistent with the GPA, if any, 
could Croatia please explain the rationale requiring the use of negotiated pr ocedures in such cases? WT/TPR/M/227/Add.1 
Page 66  
 
 Answer:
 
The list of cases justifying the use of negotiate d procedures under Articles 14 (for public works), 15 
(for supplies) and 16 (for public services) of the PPA is consistent with the list of cases justifying 
limited tendering under Article XV of the GPA.  
26. Could Croatia elaborate on whether and, if so , which information must be provided by 
contracting authorities to justify the use of negotiated procedures? 
Answer:  
Contracting authorities shall publish a notice of the commencement of a public procurement 
procedure in the negotiated procedure wit hout prior publication of a contract notice  for each contract 
to be awarded under Articles 14, 15 and 16 of  the PPA in which they provide the following 
information:  name, address, fax number and elect ronic address of the contracting authority and the 
activity of the contracting authority, subject-matte r of the procurement, CPV nomenclature reference 
number, estimated value of procurement, source – the method of dedicated funds, legal basis for the 
negotiated procedure without prior publication of a contract notice, information on the economic 
operator(s) with whom the contracting authority in tends to negotiate in the negotiated procedure 
without prior publication of a contract notice, aut horised representatives of the contracting authority 
in the public procurement procedure, the cont racting authority's responsible person (name and 
surname), date of dispatch of the notice.  The cont racting authority shall as well draw up a report on 
each awarded contract, which shall include an explan ation of the reasons for applying and the terms 
justifying the selection of the negotiated procedure.   The contracting authority shall keep all the 
documents concerning each public procurement proce dure for a period of at least four years from the 
date on which the public procurement procedure w as completed.  The contracting authority shall 
provide this documentation in the course of the pro cedure of legal protection (if initiated) before the 
independent remedy body (The State Commission for the Supervision of Public Procurement 
Procedures) which decides on appeals in public pr ocurement procedures, to prove all the facts and 
circumstances used to make decisions concerning one' s rights, to take actions or omit to take actions, 
or to conduct procedures which are the subject of the review procedure. 
Part IV. Trade Policies by Sector:  (3) Servi ces:  (i) Overview:  paragraph 35, page 83: 
The report states that though Croatia has taken steps to tackle some of its structural problems in 
certain services subsectors, "some SOEs still dominate the services activities [...]". 
27. What strategies is Croatia undertaking for fu rther liberalisation of the services sector and its 
subsectors?   
Answer:  
By acceding to the WTO, Croatia undertook comprehe nsive and extensive commitments on trade in 
services.  A Croatian Schedule of Specific Commitments on Services, as a result of the accession process, shows a very large number of sectors and sub-sectors included and also high level of undertaken commitments.  In figures, 11 sectors and 122 sub-sectors are included which represent 
almost 80% of total, including all major sector s and sub-sectors.  The level of undertaken 
commitments is generally higher then the leve l of commitments undertaken by founding WTO 
members and in particular by WTO members at comparable level of development. 
Therefore, the position of Croatia is that provision s relating to the specific situations of Recently 
Acceded Members should be included within the futu re modalities in the field of trade in services as 
well.   WT/TPR/M/227/Add.1 
 Page 67 
 
 
 The positions of Croatia in this r ound of negotiations in the field of trade in services are based on the 
already achieved high level of liberalisation and the commitments undertaken by Croatia in the 
accession process that do not leave much space for furthe r liberalisation.  Nevertheless, aiming to the 
further liberalisation of the services sector, some sectors like the post lay down a detailed timetable for gradual market opening.  
Part IV. Trade Policies by Sector:  (3) Services:  (vi) Professional Services:  (c) Architectural 
and Engineering Services:  paragraph 93, page 96: 
The report states that "Croatia has not undertak en any GATS commitments for architectural and 
engineering services". 
28. Is Croatia considering taking on commitments under the GATS for architectural and 
engineering services? 
Answer:
 
The above mentioned statement from the Secretariat Report should be brought into conformity with 
the Croatian Schedule of Specific Commitments on Services. 
According to this Schedule of Specific Commitments on Services, Croatia undertook commitments in 
1. BUSINESS SERVICES, A. Professional Services:  (c) Architectural Services (CPC 8671) and 
Engineering Services (CPC 8672). 
QUESTIONS FROM JAPAN  
Report by Croatia (WT/TPR/G/227)  
II. ECONOMIC ENVIRONMENT 
(iv) International competitiveness and internationalization 
(Question 1: page 9, paragraph 22) 
According to Chapter II Paragraph 22, The Governme nt of Croatia is impl ementing "The Programme 
of Promotion of International Competitiveness a nd Internationalization of the Economy of Croatia 
2009-10", which aims to provide support to domest ic companies in their effort to strengthen 
international competitiveness and internationalization.   Please elaborate further on the "support" that 
will be provided by the Government to domestic co mpanies (measures, qualifications, procedures for 
application, etc.).  
Answer:  
Based on the export strategy, the Competitiveness St rengthening and Interna tionalization Programme 
has been developed with the objective to increase  the level of internationalisation of Croatian 
economy through strengthening the capacities of e xport oriented SME's in developing new and 
competitive products.  The program is a combination of six incentive measures, three are 
implemented at the level of individual entrepre neurs and three at the level of association of 
entrepreneurs (clusters) during a joint ap pearance on the international markets.  
The program is implemented as a grant scheme w ith the following priorities:  establishment and 
incorporation of procedures for the testing and cer tification of Croatian products in order to ensure 
compliance with International Quality standards;   improvement of marketing, promotion and WT/TPR/M/227/Add.1 
Page 68  
 
 presentation of Croatian products on the new market s and organization of training for staff in 
technical, marketing and quality assurance department s in order to ensure that the companies have 
human resources able to meet and implement the requirements needed to enhance their 
competitiveness.   
Activities co-financed by this program are:  partic ipation in international trade fairs, marketing 
activities, branding and design, developing new produc t, adoption of technical and quality standards 
etc. Eligibility of potential applicants:  to be an export oriented company /be a registered SME 
according to the Croatian definition (micro enterpris es with less than 10 employees are not eligible);  
Be an export-oriented SME (at least 25% of the turn over in the previous fiscal year is gained from the 
exports);  and be fully privately owned; be legally registered as per Croatian legislation, be able to 
demonstrate a profit, solvency etc.  The supports  through these horizontal measures are in line with 
EU state aid rules for SME's.  
Regarding the activities of joint appearance on the international market, the support is given to 
network of companies (clusters) and in coope ration with Chamber of Economy and Trade and 
Investment Promotion Agency for the organisation of joint exhibitions of Croatian economy on trade 
fairs, organisation of trade missions and support to the organisation of representative offices of 
Croatian economy on target markets. 
Report by the Secretariat (WT/TPR/S/227)  
III. Trade Policies and Practices by Measure (1) Measures Directly Affecting Imports 
(vii) Standards and other technical requirements 
(a) Standardization, testing and certification (Question 2:  page 42, paragraph 51) 
According to Chapter III Paragraph 51, Croatia is transposing various elemen ts of the EU technical 
requirements in its legal system.  Among these EU technical requirements, we noted during TBT committee meetings that members expressed many c oncerns over REACH’s conformity with the TBT 
agreement.  
Please explain the Croatian Government's basic polic y on developing standards that conforms to the 
TBT agreement. 
Answer:
 
The Croatian Standards Institute has met the criteria for membership of the European standardisation 
organisations and, based on its application for membership filed on 26 June 2009, and a successful 
audit for the assessment of CSI's capacity that took place from 14 to 18 September 2009, it became a 
full-fledged member of the European Committee for Standardisation (CEN) and the European 
Committee for Electrotechnical Standardization (CENELEC).  Thus, the CSI has satisfied the criteria stipulated in Article 73 of the Stabilisation and Asso ciation Agreement relating to the participation of 
Croatia in the work of specialised European orga nisations in the field of standards (CEN, CENELEC, 
ETSI). 
The Croatian Standards Institute carries out its regul ar activities on the promotion of membership in 
the CSI.  In late December 2009, the CSI had 53 1 members (profit organisations, public institutions,  WT/TPR/M/227/Add.1 
 Page 69 
 
 
 educational institutions, professional associations, chambers, individuals and traders/craftsmen, etc.), 
and co-operated with all bodies of state administration having an interest in the field of application of 
standards.  The CSI's database of members and the bodies of state administration co-operating with the CSI is regularly updated, and information a bout the members is periodically published in the 
official bulletin of the CSI. 
The process of restructuring of the technical comm ittees continues.  At present, there are 165 active 
technical committees, formed accord ing to the new rules, with around 2,500 members.  From July to 
late December 2009, 13 technical committees were rest ructured in conformity with the new rules.  
The CSI's technical committees monitor the work of  a large number of international and European 
technical committees:  127 ISO/TCs (65% of th e total number of ISO/TCs), 38 IEC/TCs (40%), 
214 CEN/TCs (77 %), 25 CENELEC/TCs (44%) and all ETSI/TCs (100%). 
The Croatian Standards Institute monitors the de velopment of standards at the European and 
international level and makes an effort to main tain the dynamics of acceptance of the European 
standards in the national system in line with the p ace of their development at the European level, and 
within the time limits fixed by the European or ganisations for standardisation, CEN and CENELEC. 
Considering that new standards are continuously be ing developed, changed, withdrawn and replaced 
at the European level, and that the European or ganisations for standardisation, CEN and CENELEC, 
publish over one hundred new standards a month, whic h must be accepted as Croatian standards, there 
is a slight variation in the number of European sta ndards accepted at the national level.  At this time, 
over 90% of the European standards have been adopted in the national standardisation system. 
The CSI has been taking part in  the European system CEN iPROJEX – National implementation from 
June 2007 through regular entry of data on the Cr oatian standards which are adopted European 
standards into the CEN's information system in lin e with the system rules.  Data on the adopted 
Croatian standards are available, along with data of all regular members of the CEN, on the CSI's 
website. 
Notifications concerning Croatian standards whic h are CENELEC's and ETSI's adopted European 
standards are forwarded to the said organi sations in accordance with their rules. 
From April 2008, the CSI has been involved in the CEN INFOPRO system for the notification of 
original Croatian standards in conformity with Dir ective 98/34/EC of the Eur opean Parliament and of 
the Council concerning notification.  Data on the original Croatian standards are included in the 
monthly reports on new notifications of the CEN M onthly Notification Register, along with the data 
of all regular members of the CEN and CENELEC. 
Along with the activities on adopting European st andards, work on translating European and 
international standards and having them published in the Croatian langua ge also continued.  Work is 
underway on the translation of European standard s in the field of construction (the so-called 
Eurocodes). 
The WTO/TBT Central Contact Point regularly pr ovides information concerning the valid Croatian 
standards and technical regulations to all inter ested parties (natural and legal persons) from the 
country and abroad. 
Work is progressing on the implementation of the obligations included in the Strategy for the 
Development of the Croatian Standards Institute fo r the period 2009–11 in the field of standardisation 
activities as follows:  maintaining the collection and ma intaining the register of Croatian standards;  
accepting and issuing Croatian standards for the applica tion of the technical legislation;  work on the 
preparation and updating of the list of Croatian stan dards connected with the application of certain WT/TPR/M/227/Add.1 
Page 70  
 
 technical regulations which are published in the Of ficial Gazette for the relevant bodies of state 
administration which adopt the regulations concerne d, and on setting up the relevant base about the 
standards;  continued work on the implementation of Eurocodes and the incorporation of nationally 
determinable parameters and national annexes into the documents; continued work on the 
improvement of the current information system and continued work on the establishment of the 
system of information security management under the standard ISO 27001. 
REACH Regulation
 
Implementation of the REACH Regulation had started in Ma y 2008 by adoption Act on the 
Implementation of Regulation (EC) No. 1907/2006 of  the European Parliament and of the Council 
concerning the Registration, Evaluation, Authoriza tion and Restriction of Chemicals (OG 53/08) and 
Act on amendments of the Chemicals Act (OG 53/08) in order to adapt it with the REACH Regulation 
(new definitions of substance a nd polymer, downstream user, distribut or and recipient of a substance 
or of a preparation, provisions on safety data sheet). 
Implementation had continued in 2009 by establishing  REACH helpdesk in according with the Article 
124 of the REACH Regulation in the Ministry of Health and Social Welfare (helpdesk-
reach@mzss.hr ) as from 1 June 2009 and by adopting Ordinance on safety data sheet (OG 39/09) in 
March 2009 in according with the Annex II of the REACH Regulation. 
Continuation of the implementation is foreseen in  I quarter 2010 by adopting List of dangerous 
chemicals whose marketing is prohibited or limited in according with the Annex XVII of the REACH Regulation (restrictions on the manufacture, placing on the market and use of certain dangerous substances, preparations and articles) and Comm ission Regulation (EC) No . 552/2009 of 22 June 
2009 amending Regulation (EC) No. 1907/2006 of th e European Parliament and of the Council on the 
Registration, Evaluation, Authorization and Rest riction of Chemicals (REACH) as regards Annex 
XVII. 
Further implementation is also subject to change as the EU is currently reviewing legal and technical 
aspects of possible transitional periods to be granted in respect of implementation of certain 
provisions. 
QUESTIONS FROM MEXICO
  
IV. TRADE POLICIES, BY SECTOR / (3) Services / (ii) Financial services  / (a) Banking  
1. Paragraph 41 states that in order to estab lish a bank or any credit in stitution in Croatia, a 
licence is required from the Croatian National Bank (CNB).  What are the re quirements for obtaining 
such a licence? 
Answer:  
According to the Article 59 of the Credit Ins titution Act (OG 117/2008., 74/ 2009 and 153/2010.), a 
credit institution shall receive authorization from the Croatian National Bank to operate as a bank, 
savings bank or housing savings bank.  
This application for authorization (Article 63. of Credit Institution Act) shall be accompanied by:  the 
Articles of Association in the form of a certified c opy of a notarial deed; a business plan for the first 
three years of business, including balance sheets,  profit and loss accounts, the types of business 
planned, the appropriate organizational, technical  and personnel structure of the credit institution, 
accounting policies and the organization of the internal  audit function;  an application to acquire a 
qualifying holding referred to in Article 35 of Credit Institution Act and documentation referred to in  WT/TPR/M/227/Add.1 
 Page 71 
 
 
 Article 35, paragraphs (1) and (3) of Credit Institution Act; the appli cation referred to in Article 46, 
paragraph (2) and Article 47 of Credit Institution Act with a proposal from the supervisory board 
members and documentation referred to in Article  46, paragraph (4) of Credit Institution Act;  
evidence on the initial capital for the cr edit institution to be established;  an opinion or approval of the 
competent authority of a EU Member State or the co mpetent authority of a third country on the credit 
institution of a EU Member State or a third countr y intending to establish a credit institution in the 
Republic of Croatia; and a relevant legal act of the competent authority authorizing the provision of 
specific financial services where so required by th e regulations governing the provision of specific 
financial services set out in the credit institution's business plan. 
Where a credit institution intends to provide financ ial services in addition to banking services, it shall 
specify the types of financial services it intends to provide in the application for authorization.  A 
credit institution intending to provide additional fina ncial services referred to in Article 5 of Credit 
Institution Act, paragraph (2), items (2) and (3) of  this Act, shall deliver to the Croatian National 
Bank documentation prescribed in a special law. 
The Croatian National Bank may also request othe r documentation evidencing compliance with the 
personnel, technical and organiza tional requirements for the provision of services to which the 
application for authorization relates.  The Croa tian National Bank shall simultaneously decide on the 
following applications when issuing authorizations:  the application to provide banking services;  the 
application to acquire a qualifying holding;  the application for the chairperson or a member of the 
management board; and the applicati on to provide financial services re ferred to in Article 5 of Credit 
Institution Act, if the credit institution submitted an  application for authorization to provide such 
services at the same time as submitting an application for authorization. 
All of these previously mentioned and other detailed information could be found at internet page of 
Croatian National Bank (www.hnb.hr ). 
IV. TRADE POLICIES, BY SECTOR / (3) Services / (iii) Telecommunications and postal 
services 
2. Paragraph 58 mentions that any person ( natural or legal) can provide electronic 
communications networks or services, according to the general authorization regime, after submitting 
an application to the Croatian Post and Electroni c Communications Agency (HAKOM).  What does 
this general authorization regime involve? 
Answer:  
Operator must obtain general authorization, in fact, notify HAKOM, in written, about the start of the 
electronic communications services under the conditions laid down in Electronic Communications 
Act and in the Ordinance on the manner and conditions for the provision of electronic communications networks and services (OG 154/08).  Secondly, company must paid the following fees (for the carrying out of Agency's tasks):  the f ee for the use of addresses and numbers;  the fee for 
the use of the radio frequency spectrum;  and the f ee for performance of other tasks of the Agency in 
the percentage of the total annual gross revenue earned by operators  in the previous calendar year 
during the provision of electronic communications networks and services on the market, except for broadcasters of electronic media broadcasting their radio and television programs by means of their 
own electronic communications network used exclusively for that purpose. 
The calculation and the amount of fees are prescrib ed by an ordinance adopted by the Agency's 
Council, on the basis of the Agency's annual financial pl an, at the latest by the end of the current year 
for the following calendar year.  WT/TPR/M/227/Add.1 
Page 72  
 
 3. According to paragraph 63, the Strategy fo r Postal Services Market  Development in the 
Republic of Croatia until 2013, and the Action Plan for the Implementation of the Strategy were 
adopted on 19 March 2008.  The Strategy sets out  principles and guidelines for the development of 
the postal services market, and the national prior ities in maintaining and developing postal services.  
Where can the Strategy be viewed and in what languages? 
Answer:
 
Requested Strategy can be viewed on internet pag es of Croatian Post and Electronic Communications 
Agency (www.hakom.hr/default.aspx?id=216  ) but only on the Croatian language. 
IV. TRADE POLICIES, BY SECTOR / (3) Services / (iv) Transport  / (c) Maritime transport 
and ports  
4. According to paragraph 73, Croatia has signed 12 bilateral agreements on maritime 
transport and 5 on inland waterway transport.  W ith which countries has Cr oatia signed bilateral 
agreements on maritime transport? 
Answer:  
Croatia has signed 12 bilateral ag reements on maritime transport with the following countries: 
Albania, Bulgaria, India, Iran, China, Morocco, Poland, Romania, Turkey, Greece, Slovakia, and 
Egypt. 
IV. TRADE POLICIES, BY SECTOR / (3) Services / (vi) Professional services  / 
(b) Accounting and auditing services 
5. Paragraph 87 specifies that the accounting pr ofession is not regulated in Croatia, therefore 
there are no certification requirements for account ants.  What conditions or requirements would 
foreign accountants have to meet in order to provide services in Croatia? 
Answer:  
According to the Accounting Act, there are no sp ecific requirements for the foreign accountants to 
provide services in Croatia. Nevertheless, if an acc ountant wants to provide services in Croatia, it has 
to fulfill establishment requirements in accordance with the relevant Croatian legislation (Company 
Law/Crafts Law).  
QUESTIONS FROM MEXICO TO CROATIA REGARDING INTELLECTUAL PROPERTY  
(vi) Protection of intellectual property rights Geographical indications
 
Paragraph 144 6. Are geographical indications subject to any exa mination procedure and, if so, what form does 
it take and which authority is in charge of applying the procedure? 
Answer:
 
In Croatia division of competence exists between ge ographical indications and designations of origin 
for agricultural products and foodstuffs, wines and sp irits, and all other products or services.  In each  WT/TPR/M/227/Add.1 
 Page 73 
 
 
 case there are examination proceedings prescribed wh ich need to be followed in order to register a 
geographical indication or a designation of origin. 
In case of agricultural products and foodstuffs this procedure is prescribed in Articles 7 to 10 of the 
Act on Designations of Origin, Geographical Indi cations and the Traditional Speciality Logo for 
Agricultural Products and Foodstuffs  (OG 84/08, 75/09, 107/09 and 20/104), which are implemented 
by Ordinance on Geographical Indications and Desi gnations of Origin of Agricultural Products and 
Foodstuffs (OG 88/09)5 that prescribes the examination proceedi ngs in more detail in Articles 15 to 
18.  Examination proceedings consist of formal and substantive examination, and there is a possibility 
to file opposition under certain grounds as part of th at procedure.  Ministry of Agriculture, Fisheries 
and Rural Development is competent body for im plementation of this Act.  The examination 
proceedings are conducted by a permanent Expert Co mmittee formed by the Ministry of Agriculture, 
Fisheries and Rural Development and the decision on registration is taken by the Ministry of 
Agriculture, Fisheries and Rural Development. 
Act on Wine of 2003 (OG 96/03) and Ordinance on Ma rking Wines with Geographical Indications of 
2005 (OG 7/05) and its subsequent amendments in 2008 (OG 41/08) regulate the field of geographical 
indications for wines.  Examination proceedings ar e prescribed in Article 3 to 7 of the Ordinance on 
Marking Wines with Geographical Indications a nd performed by the Croatian Office for Grape 
Growing and Wine Production. Upon the opinion of the Croatian Office for Grape Growing and Wine 
Production the Ministry of Agriculture, Fisheri es and Rural Development takes the decision to 
register a geographical indication for wine. 
Ordinance on Recognition and Protection of Geogr aphical Indications for Spirits (OG 20/07) 
regulates the procedure for registration of geographi cal indications for spirits in Articles 3 to 11. 
Ministry of Agriculture, Fisheries and Rural De velopment decides on registration and listing of 
geographical indications for spirits in  the list of geographical indications registered for spirits attached 
to the Ordinance. The examination procedure is performed by a permanent Expert Committee formed 
by the Ministry of Agriculture, Fisheries and Rural Development. 
For all other products and services the registration procedure is performed according to the Act on 
Geographical Indications and Designations of Orig in of Products and Services (OG 173/03, 186/03 
and 76/07) by the State Intellectual Property Office .  Examination proceedings are prescribed in 
Articles 27 to 32 and in detail by  Article 3 of the Ordinance on Geographical Indications and 
Designations of Origin of Products and Services (OG 72/04 and 117/07).  Examination proceedings 
consist of formal and substantive examination, and there is a possi bility to file opposition on certain 
grounds as part of that procedure. 
7. May a GI coexist with a trademark in Croatia?  What are the requirements? 
Answer:  
Article 17 of the Act on Geographical Indications and Designations of Origin of Products and 
Services (OG 173/03, 186/03 and 76/07) deals with th e issue of relation of geographical indications 
and designations of origin with trade marks.  Inter alia  coexisting of designation of origin and 
geographical indications with trade marks is regulated in paragraph 1 of that Article: 
                                                      
4 This most recent amendment to the Act on Designations of Origin, Geographical Indications and the 
Traditional Speciality Logo for agricultural products and fo odstuffs is not mentioned in the Report, since it has 
been enacted after drafting the Report. 
5 This most recent Ordinace has re pealed the Ordinance on Geographical  Indications and Designations 
of Origin of Foodstuffs (OG 80/05 and11/07) mentioned in the Report. WT/TPR/M/227/Add.1 
Page 74  
 
 Article 17 
1. A trademark for which an application has been fi led or it has been registered or used in good faith 
before the filing of a request for the entry of a ge ographical indication or a designation of origin, and 
which is used to identify products and services id entical with or of the same kind as a protected 
geographical indication or a designation of origin ma y continue its use, and shall not be invalidated 
for containing a geographical indication in its name (…). 
Act on Designations of Origin, Geographical Indi cations and the Traditional Speciality Logo for 
Agricultural Products and Foodstuffs (OG 84/08, 75/09, 107/09 and 20/10
6) also contains in Article 
15 provision on the relations between trademarks, de signation of origin and geographical indications. 
Coexisting of designation of origin and geographical  indications with trade marks is regulated in 
paragraph 2 of that Article: 
Article 15 
(…) 
2. A trademark the use of which corresponds to one of  the situations referred to in Article 14 of this 
Act7  which has been registered in good faith in th e Republic of Croatia in accordance with special 
legislation before the date of filing of the request  for registration of a geographical indication or a 
designation of origin under this Act and ordinance a dopted under this Act, may continue to be used 
notwithstanding the registration of a designation of  origin or geographical indication provided no 
ground for its invalidity or revocation ex ist according to special legislation. 
Other related pieces of legislation mentioned in the reply to the previous qu estion contain no relevant 
provisions. It should, however, be noted that in such  case the provision of the general law in the field, 
which is the Act on Geographical Indications and D esignations of Origin of  Products and Services 
(OG 173/03, 186/03 and 76/07), should apply. 
8. Is recognition of foreign appellations of origin subject to any legal procedure, payment of 
fees or remuneration of any kind? 
Answer:  
Under Article 10 paragraph 2 of th e Act on Geographical Indications and Designations of Origin of 
Products and Services (OG 173/03, 18 6/03 and 76/07) foreign persons may apply for protection of a 
geographical indication or a designation of origin if they have been granted such rights in the country 
of origin and if they comply with the requirements defined in this Act.  Thereby they have to be 
represented by authorized local agent.  Apart from othe r requirements, they also have to submit to the 
Office evidence on such protection (true copy in the official language or a certified translation into 
Croatian) in the country of origin.  Accordingly such  application is equally s ubject to all proceedings, 
payments etc. as a national application. 
If there is an international or bilateral agreement on mutual protection of geographical indications or 
designations of origin with a certain country, then  such foreign geographical indication or designation 
of origin is afforded protection on the basis of protection in the country of origin.  Croatia has up to 
now not entered any such agreement. 
                                                      
6 This most recent amendment to the Act on designations of origin, geographical indications and the 
traditional speciality logo for agricultura l products and foodstuffs is not me ntioned in the Report, since it has 
been enacted after drafting the Report. 
7 Article 14 determines the scope of protection of geographical indications and designations of origin.  WT/TPR/M/227/Add.1 
 Page 75 
 
 
 Other related pieces of legislation mentioned in the reply to the previous qu estion contain no relevant 
provisions.  It should, however, be noted that in such case the provision of the general law in the field, which is the Act on Geographical Indications and D esignations of Origin of  Products and Services 
(OG 173/03, 186/03 and 76/07), should apply. 
9. Where GIs are protected under an agreement, c onvention or treaty, are they governed by the 
provisions therein or are they distinguished in some other way? 
Answer:
 
In Article 10 of the Act on Geographical Indications  and Designations of Origin of Products and 
Services (OG 173/03, 186/03 and 76/07) it is said  that foreign persons can enjoy the right of 
protection of geographical indications  and designations of origin if th is follows from an international 
or bilateral agreement on mutual protection of ge ographical indications or designations of origin 
concluded by the Republic of Croatia .  Also, as already mentioned, if there is an international or 
bilateral agreement on mutual protection of geographi cal indications or designations of origin with a 
certain country then such foreign geographical in dication or designation of origin is afforded 
protection on the basis of protection in the country of origin.  Croatia has up to now not entered any 
such agreement or treaties. 
Enforcement measures  
Paragraph 132 10. Does the State Intellectual Property Office (SIPO) have powers of enforcement? 
Answer:
 
SIPO does not have powers of enforcement of IP rights, but has a certain role in relation to the 
enforcement of rights.  Namely, SIPO is to provi de professional and logistic support to the currently 
establishing national coordination bodies for the enforc ement of IP rights, and its representatives are 
members of all the bodies8 except the Operational Subgroup.  SIPO also provides information on 
registered rights for the purpose of enforcement proceedings carried out by the bodies competent for 
the enforcement and assists to the enforcement bodies in relation to the IP related education of their 
officers. 
11. Is the Ministry of Justice empowered to  order the application of customs measures? 
Answer:  
Please see answers to the questions regarding Paragraph 147. Paragraph 147 
12. Paragraph 147 men tions 610 IPR infringement cases reported by the Customs 
Administration.  Does this mean that the entire pro cedure from the start, including the determination 
of whether or not there is an infringement, is conducted by the Customs Administration? 
                                                     
 
8 These bodies are: IPR Enforcement Steering Co mmittee, IPR Enforcement Coordination Board, 
Operational Sub Group and Right Holder Sub Group. WT/TPR/M/227/Add.1 
Page 76  
 
 Answer:
 
The Regulation on Implementation of Customs Measu res Regarding Goods Suspected of Infringing 
Certain Intellectual Property Rights (the "Regula tion"- OG. 50/06 and 82/07) prescribes conditions for 
the implementation of measures concerning goods whic h are the customs authorities' subject of action 
and which are reasonably suspected of infringing certain intellectual property rights, as well as the 
procedure for the implementation of the measures.  
The Regulation also prescribes measures which are to be taken after legal court decision is introduced 
that the goods which are the cust oms authorities’ subject of action infringe certain intellectual 
property rights. 
Customs measures for the protection of intellectual property rights are indeed conducted by customs 
authorities, but customs authorities do not have role of determination of whether or not there is an 
infringement.  According to the Regulation, the Cu stoms can accept notarized statement of the right 
holder that goods in question infringe its intellectua l property rights and allow to the right holder to 
destroy infringing goods under customs supervision if the declarant, owner or holder of goods does 
not oppose to the procedure of destruction of infringing goods under customs supervision. 
If the declarant, owner or holder of goods do oppose to such destruction, only competent court of law 
is entitled to determine whether or not there is an  infringement of intellectual property rights.   
13. Once Customs has verified the goods, what is the procedure until the goods are destroyed and 
which is the responsible authority (C ustoms or Ministry of Justice)? 
Answer:  
Customs authorities can allow to the right holde r to organize and destroy infringing goods under 
customs supervision.  It can only be done after cu stoms authorities receive notarized statement of the 
right holder that goods in question infringe its inte llectual property rights, along with the settlement or 
statement of the declarant, owner or holder of g oods that he does not oppose to the destruction of 
infringing goods under customs supervision.  Therewith also has to be a demand of the right holder to 
destroy infringing goods under customs supervision.  Destruction can also be done after customs 
authorities receive legally effective court decision that goods in question are infringing intellectual 
property rights of the right holder concerned (the  right holder has obligation to inform customs 
authorities about the outcome of the court proceeding). 
Only the declarant, owner or holder of infringing goods on one side or the right holder on the other 
side can be responsible for paying the storage and d estruction costs.  These costs can not be burden of 
the Croatian state budget. 
14. Should it be determined that there is no infr ingement, who bears the expenses of seizure of the 
goods (such as warehousing and fines potentially payable by the importer for breach of contract), 
particularly in cases where the goods were verified ex officio? 
Answer:  
In case it is determined that there is no infringement , there are few possible situations that influence 
on who has obligation to pay for the storage costs: in  ex-officio case the declarant, owner or holder of 
goods bears the expenses that rise from the fact th at customs authorities paused with the customs 
procedure regarding goods in question;  in case upon application for action, the declarant, owner or 
holder of goods bears the expenses that rise from th e fact that customs authorities paused with the 
customs procedure regarding goods in question.  Th e right holder may be asked to compensate such  WT/TPR/M/227/Add.1 
 Page 77 
 
 
 costs due to the fact that the right holder needed to give declaration to the customs authorities where 
he declares that he accepts all responsibility for the damage caused by the action towards the persons 
involved in procedures or in case that the goods in qu estion are subsequently found not to infringe an 
intellectual property right (although one who suffers such costs needs to demand from the right holder 
to compensate such costs or may initiate a privat e court proceeding regarding such compensation);  
and in case where the right holder in itiates a court case in order for cour t to determine whether there is 
infringement or not, the right holder has obligation to put the goods in customs procedure for storage of goods and to pay for storage expenses for the duration of the court proceeding. 
Paragraph 149 
15. Which is the designated authority for boards of appeal? 
Answer:
 
Set up of the Boards of Appeals for the industrial pr operty rights is regulated by Article 91 (in more 
details Articles 91 to 94) of the Patent Law (underlined by SIPO): 
Article 91 
"(1) The Boards of Appeal for industrial propert y rights responsible for deciding on appeals against 
the decisions issued by the State Intellectual Prope rty Office in the first instance (hereinafter:  the 
Boards of Appeal) shall be established as independent bodies  responsible for deciding on appeals in 
accordance with the provisions of this Act. 
(…) (4) The Boards of Appeal shall have their seat at the Office (SIPO)
.  The Office shall place at the 
disposal of the Boards of Appeal such premises  and equipment as necessary for the performance of 
their tasks. 
(5) The Secretariat of the Boards of Appeal, orga nized as an organizational unit within the Office, 
shall perform clerical and other administrative tasks for the Boards of Appeal . 
(6) The President of the Boards of Appeal (hereinaft er:  the President) shall administer the work of the 
Boards of Appeal. 
(7) The President and members of the Bo ards of Appeal shall be independent , not bound by any 
instructions of the Director General of the Offi ce, and shall perform their tasks impartially, in 
accordance with the law.(…). 
In other words, the Boards of A ppeal are independent and their Secr etariat and logistics are provided 
by SIPO as designated authority. WT/TPR/M/227/Add.1 
Page 78  
 
 Copyright and related rights
 
Paragraph 137 16. Does the Law on copyright and related rights provide for the protection of titles, names, 
appellations, distinctive physical and psychologica l characteristics, or original operating 
characteristics, applied to any of the followi ng categories in accordance with their nature? 
I. Periodical publications:  published in successive pa rts with a variety of content, with a view 
to indefinite continuation; 
II. Periodic broadcasts:  emitted in successive part s with a variety of content, with a view to 
indefinite continuation; 
III. Character-based, fictional or symbolic human personalities; 
IV. Persons or groups engaged in artistic activities;  and 
V. Promotional advertising:  involving a novel and unprotected mechanism for the purpose of 
promoting or offering a good or a service with the ad ditional incentive of giving the general public the 
chance to obtain another good or service on more favorable conditions than are available in the 
ordinary course of trade. 
If this is the case, under what legal provision are they protected? 
Answer:
 
The subject matter of copyright is a copyright work, as provided for in Article 5 of the Copyright and 
Related Rights Act: 
COPYRIGHT WORK   
Article 5 
(1) A copyright work shall be an original intell ectual creation in the literary, scientific and artistic 
domain, having an individual character, irrespectiv e of the manner and form of its expression, its 
type, value or purpose, unless otherw ise provided for in this Act.  
(2) Copyright works shall be in particular:  wo rks of language (written works, oral works, and 
computer programs);  musical works with or without words;  dramatic or dr amatico-musical works;  
choreographic works and works of pantomime;  works of  visual art (in the field of painting, sculpture, 
and graphics), irrespective of the material they are ma de of, and other works of visual arts;  works of 
architecture;  works of applied art and industrial design;  photographic works and works produced by a process similar to photography;  audiovisual works (cinematographi c works, and works created in a 
manner similar to cinematographic creation);  cartogr aphic works;  presentations of a scientific or 
technical nature such as drawings, plans, sketches, tables, etc.  
(3) The subject matter of copyright may be any copyright work, except the one, which cannot be such 
work by its nature, and the one for which the provi sions of this Act provide that it cannot be the 
subject matter of copyright.  
(4) The subject matter of copyright is the work as a w hole, including an unfinished work, the title of a 
work, and the parts thereof that fulfill the pre-cond itions set out in paragraph (1) of this Article.   WT/TPR/M/227/Add.1 
 Page 79 
 
 
 (5) The title of the work, which does not fulfill th e pre-conditions for being the subject matter of 
copyright, and which has already been  used for a certain work, shall not  be used for the same kind of 
work, if such title is likely to create c onfusion as to the author of the work. 
Thus, paragraphs 1, 2 and 3 of the cited Article provide for what is considered to be a copyright work, 
and paragraphs 4 and 5 provide for the protection of the title of a copyright work.  
As regards the protection of the specified names, appellations, distinctive physical and psychological 
characteristics, or original operating characteristics,  in accordance with their nature, the Copyright and 
Related Rights Act does not provide for a special protection. 
17. Does the Law on copyright and related rights provide for the protection of expressions of 
folklore?  If so, how extensive is the protection of such expressions? 
Answer:  
Copyright and Related Rights Act provides for the works of folklore in Article 8, paragraph 3 thereof, 
such as follows: 
"Folk literary and artistic creations in their original form shall not be the subject matter of copyright, 
but their communication to the public is subject  to the payment of remuneration, as for the 
communication to the public of protected copyright wo rks.  The remuneration shall be the revenue of 
the budget, and shall be used for improving the creativity in the field concerned." 
18. Does the Law on copyright and related rights provide for the protection of dance? 
Answer:  
Dance may be protected by a related right, as the pe rformance of a performer.  Article 122 of the 
Copyright and Related Rights Act provides for who are the performers: 
"Performers shall mean actors, singers, musicians, dancers and other persons, who act, sing, deliver, 
declaim, play in, interpret, or otherwise perform literary or artistic works or expressions of folklore. 
A director of theatrical performance and a conductor of an artistic ensemble shall be also deemed 
performers". 
Article 124 of the Copyright and Related Rights Act provides for the moral rights of performers:  "a 
performer shall have the right to be recognized and indicated as such, that is, to decide whether his 
name, or other indication of his identity will be indicated at the time hi s performance is used;  a 
person who publicly uses a performance shall at an y use indicate a performer, except where the 
performer declares in a written form that he does not want to be indicated as such;  a performer shall 
be deemed a person whose name, pseudonym, artist's mark or code is regularly indicated on the 
copies of a performance or at its disclosure, until prove n to the contrary and a performer shall have the 
right to oppose to any destruction, distortion, mu tilation or similar modification of his performance, 
and any use of the performance, which is jeopardiz ing or might jeopardize his honor or reputation." 
Article 125 of the Copyright and Related Rights Act provides for the economic rights of performers:  
A performer shall have the exclusive right:  to fi x his unfixed performance;  to reproduce his fixed 
performance;  to distribute, including the rental, of his fixed performance; to communicate to the 
public his unfixed and fixed performance including in  particular:  the right of broadcasting and 
rebroadcasting, the right of public communication of  fixed performances and broadcasting, the right 
of public transmission, the right of public presen tation and the right of making available to the 
public". WT/TPR/M/227/Add.1 
Page 80  
 
 Related to dance, copyright protection is provided for  choreographic works according to the Article 5 
cited above. 
19. Does the Law on copyright and related rights provide for the protection of radio and 
television programmes? 
Answer:
 
Article 143 of the Copyright and Related Right s Act provides for the rights of broadcasting 
organizations: 
RIGHTS OF BROADCASTING ORGANIZATIONS  Article 143:  "(1) A broadcasting organization shall have the exclus ive right:  to rebroadcast its broadcasts by wire 
or wireless means;  to fix its broadcasts;  to repr oduce its fixed broadcasts;  to distribute its fixed 
broadcasts, except the rights of their rental and lending;  to publicly communicate its broadcasts if such communication is accessible to the public against payment of an admission;  to make available to 
the public of its fixed broadcasts.   
(2) A cable distributor who merely retransmits by cable the broadcast of broadcasting organizations 
shall not be a broadcasting organization pursuan t to the provisions of this Chapter.   
(1) Disposition with the right of broadcasting organizations shall be free.  The right of 
broadcasting organizations shall in no way prejudice  the copyright, the right of performers nor the 
right of film producers."  
20. Does the Law on copyright and related right s provide for the protection of caricatures and 
comic strips? 
Answer:
 
Caricatures and comic strips may be protected as works of visual art in the field of painting.  
ADDITIONAL QUESTIONS FROM MEXICO   
Technical barriers to trade  
Paragraph 54 
States that technical regulation are developed by  various Central State Administration Bodies. 
21. Could you please tell us how many State Administration bodies are involved in developing the 
technical regulations? 
Answer:  
Regarding Paragraph 54 bellow are the State Admini stration bodies that are involved in developing 
the technical regulations: Ministry of Economy, Lab our and Entrepreneurship Ministry of Health and 
Social Welfare, Ministry of the Sea, Transport and Infrastructure, Ministry of Environmental 
Protection, Physical Planning and Construction, State Office for Metrology, Ministry of the Interior,  WT/TPR/M/227/Add.1 
 Page 81 
 
 
 Ministry of Agriculture, Fishers and Rural Developm ent, Ministry of Regional Development, Forestry 
and Water Management and Croa tian Register of Shipping. 
Paragraph 57 
Describes the Mutual Recognition Agreements. 
22. Are there any standard criteria that determine the signature of an MRA, or is it at the request 
of your domestic industry? 
Answer:  
Please be advised that there was no mutual r ecognition agreement that HAA signed with the 
accreditation bodies mentioned in the text. Unfortunately, the mistake was made in rephrasing the agreements of cooperation.  Therefore, the correct  statement is "agreement of cooperation" and not 
"mutual recognition agreement".  We apologize for any inconvenience due to the misinterpretation. 
For the moment, Croatia has not signed any mutual  recognition agreement.  However, within the 
CEFTA 2006 framework, some initiatives has been s hown recently for opening negotiations for the 
conclusion of bilateral mutual recognition agreement, at the request of industry. 
Paragraph 59 
Speaks of recognition of certain conditions for mandatory certification of cosmetics. 
23. What are these conditions? 
Answer:
 
Pursuant Article 2 of the Act on common use items (OG 85/06 and 75/09) definition of the "common 
use item" includes cosmetic products. 
In according with the Article 25 of the mentione d act, all common use items, including cosmetic 
products before the import in the Republic of Croa tia, are subject to border sanitary inspection.  
Customs authority can not issue a customs clearance  before the border sanitary inspector confirms 
that common use item is in line with the prescribed health requirements including inspectoral control 
of samples and documentation.  
Paragraph 60 
Mentions the existence of a Croatian State Inspectorate. 
24. Who controls the Inspectorate? 
Answer:  
The Government of Croatia  
Paragraph 61 
Speaks of market surveillance and mentions  the adoption of a new regulation.   WT/TPR/M/227/Add.1 
Page 82  
 
 25. Was this regulation developed by Croatia  or is it adherence to an EU regulation? 
Answer:
 
The regulation is aligned with EU regulation. 
26. Also states that market surveillance is financed by the State budget.  Is there no other source 
of income for that agency? 
Answer:  
The State inspectorate is not agency, it is state ad ministrative organization which is financing only 
from the state budget. 
From paragraphs 51 to 65 
27. What is the true extent of implementation of  the regulatory system and of compliance with the 
regulations applied to products and services?  How much impact have the changes and adaptations 
had on the regulatory system? 
Answer:  
The true extent of implementation of the regulator y system and of compliance with the regulations 
applied to products and ser vices is quite extensive: 
1. Chapter 3 - Right of Establishment and Freedom to Provide Services, of the Acquis 
Communautaire in EU-Croatia accession negotiations, has been closed and the regulations prescribed 
in horizontal legislature are being implemented. 
2. Negotiations on Chapter 1- Free Movement of G oods were formally opened at the meeting of the 
Intergovernmental Conference on the Accession of th e Republic of Croatia to the European Union, 
held on 25 July 2008.  The Common Position of the EU for Chapter 1 notes that this Chapter may be 
closed provisionally only when the EU assesses th at the following benchmarks have been met:  
a) Croatia adopts legislation transposing Directiv e 2001/83/EC on the community code relating to 
medicinal products 89/105/EC relating to the pric ing and reimbursement of pharmaceutical products, 
in line with the principles of the jurispr udence of the European Court of Justice. 
b) Croatia continues to make progress towards alignment of horizontal legislation with the acquis  and 
demonstrates good progress towards transpos ition of the New and Old Approach Product acquis  
particularly in those sectors where alignm ent is so far insufficient or limited.  
c) Croatia makes significant progress towards co mpleting the internal screening of domestic 
legislation and administrative practices with Artic les 34 –36 of the Treaty on the functioning of the 
EU, the introduction of mutual recognition clau ses, and the necessary subsequent amendments.  
d) Croatia demonstrates that it has the adequate administrative capacity to properly implement and 
enforce the legislation in all horizontal areas a ffecting the free movement of goods (regulatory, 
standardisation, accreditation, metrology, conformity  assessment and market surveillance), including 
horizontal procedural measures, such as Directive 98/34/EC, by the time of accession.   WT/TPR/M/227/Add.1 
 Page 83 
 
 
 Since the opening of accession negotiations on Chapter 1, Croatia has undertaken a series of activities 
and measures all in order to meet the benchmarks set  for the provisional closure of this Chapter and 
has continued with the process of legislative alignment with the acquis . 
Croatia has also invested significant efforts in st rengthening capacities of all institutions responsible 
for proper implementation and enforcement of horizon tal legislation in all areas of free movement of 
goods.  The coordinative role of the MELE and th e Internal Market Depa rtment, which has the 
regulatory function, has been significantly incr eased.  The metrology infrastructure has been 
transformed and the process of separation of the regu latory function of legal metrology (State Office 
for Metrology – DZM) from the function of scientif ic metrology (Croatian Metrology Institute – 
HMI) is in the final stage. 
The Croatian Accreditation Agency (HAA) and th e Croatian Standards Institute (HZN) have 
continuously strengthened their roles and importan ce.  The legislation on conformity assessment has 
been aligned with the requirements of the New Approach Directives, and the number of competent 
CABs which have been designated by respons ible authorities is constantly increasing. 
During the last two years special emphasis was give n to the strengthening of administrative capacities 
of the State Inspectorate, as a central body responsib le for market surveillance.  This has enabled 
successful enforcement of newly adopted legislation transposing NADs. 
The result of all of this effort was fulf ilment of the Benchmarks b), c) and d). 
Regarding Benchmark a) Croatia accepts the acquis under Chapter 1 and is ready to fully implement 
it by accession to the EU, with the exception of Di rective 2001/83/EC of the European Parliament and 
of the Council of 6 November 2001 on the Community  code relating to medicinal products for human 
use, as amended, for the implementation of whic h Croatia has initially requested two transitional 
periods in its Negotiating Position on Chapter 1 (C ONF-HR 7/08).  Based on additional information 
submitted by Croatia and following several rounds of  technical consultations with the Commission 
services, Croatia intends to formally amend its  initial requests through an Addendum to the 
Negotiating Position, as follows:  
- With regard to the request for a three-year transitional period following the date of Croatia's 
accession to the EU, relating to the application of the "data exclusivity" provisions (8+2+1 
formula), Croatia will withdraw its request.  Cr oatia will accordingly alig n the provisions of the 
Medicinal Products Act (OG 71/07, 45/09) with  Directive 2001/83/EC on the Community code 
relating to medicinal products for human use, as amended, by its accession to the EU at the latest. 
- With regard to the request for a five-year tr ansitional period following the date of Croatia's 
accession to the EU, relating to the upgrading of the marketing authorisations and dossiers for 
medicinal products registered in the Croatia, Croa tia will modify its initial request for a five-year 
transitional period into the request for a four-year transitional period from the date of its accession 
to the EU.  
As a conclusion it can be stated that the resu lt of the whole process was improvement of the 
regulatory system.  That be effectively illustrated by stating the fact that Croatia and EU are close to 
concluding ACAA in several Sectors, showing Croatian Internal Market is ready to be integrated into 
EU Internal Market.  WT/TPR/M/227/Add.1 
Page 84  
 
 28. On the subject of labelling of products, a lthough labels must apparently contain all relevant 
information, there is no specific indication of the type  of information that must be included.  Could 
you please provide us details on the information required? 
Answer:
 
Pursuant to Consumer Protection Act 
Article 17 stipulates:  "(1) The product information, which accompanies the product and is made 
accessible to the consumer, shall contain the relevant  information referred to in Article 111, paragraph 
4 of this Act which, depending on th e context and circumstances, an average consumer needs in order 
to make a decision to buy this product.  (2) Wher e a special regulation aligned with the European 
Community rules sets out the labelling of a certain pr oduct, the product information in respect of such 
products shall contain the data established unde r such special regulations.  (3) The product 
information shall also contain the country of origin.  (4) The data referred to in paragraph 1 to 3 of 
this Article must be presented clearly, visibly a nd legibly and written in Cr oatian language and Latin 
script, which does not exclude othe r languages and characters easily comprehensible to consumers." 
Article 111 stipulates:  (4) In the case of an inv itation to purchase, if not already apparent from the 
context, the following information shall be regarded  as important:  - information regarding the main 
characteristics of the product, to an extent appropr iate considering the communication medium used 
and considering the product, - information regardin g the seat and the identity of the trader, including 
its firm name or name and, if necessary, the seat and the identity of the person on whose behalf it is 
acting, - information regarding the price, or where the nature of the product does not allow the price to 
be calculated in advance, information regarding the manner in which the price will be calculated, 
including, if necessary, all postal costs and costs of  freight and delivery, and when these costs cannot 
be calculated in advance, an indication that these additional costs are also payable, - information 
regarding the conditions of payment, delivery, othe r elements of the contract performance, as well as 
regarding the system of complaint handling, if  these elements depart from the requirements of 
professional diligence, - information regarding the existence of the right to rescind or cancel the 
contract, for products and transactions i nvolving the existence of such a right.  
Ministry of Agriculture, Fisheries and Rural Development Concerning labelling requirements for pre-packaged foodstuffs the relevant Ordinance on labelling, 
advertising and presentation of food (OG 41/08) sp ecifies the following information that must be 
indicated:  the name under which the product is sold; the list of ingredients;  the quantity of certain 
ingredients or the category of ingredients;  the net quantity or the filling quantity;  durability; the 
storage conditions or conditions of use, where neces sary, or if they can affect durability;  the name 
and address of the manufacturer, packager or seller, registered in Croatia; particulars about the place of origin, if the omission of the same could mislead th e consumer as to the true origin of the foodstuff;  
instructions for use, where neces sary, to enable appropriate use;  actual alcoholic strength, for 
beverages containing more than 1.2% by volume of alcohol. 
Ordinance on labelling, advertising and presentati on of food (OG 41/08) also prescribes compulsory 
labelling indications for unpackaged foodstuffs for specific food categories. 
Ordinance on nutritional labelling of food (OG 29/09) prescribes com pulsory nutritional indications 
where a nutrition claim appears on labelling, in presenta tion or in advertising, with the exclusion of 
generic advertising. Nutrition labe lling means any information appeari ng on labelling and relating to:  
energy value;  the following nutrients:  protein,  carbohydrate, fat, fibre, sodium, vitamins and 
minerals listed in the Annex of Ordinance and presen t in significant amounts as defined in that Annex.  WT/TPR/M/227/Add.1 
 Page 85 
 
 
 Sanitary and phytosanitary measures  
Paragraph 70 29. Local provinces are apparently not allowed to establish their own SPS measures.  Do these 
measures have to be issued by the State? 
Answer:
 
Taking into account size of the territory Croatia and consequently size of the local provinces thereof, 
as well as legal structure, all SPS measures in Croatia are based on national legisl ation and have to be 
issued by the State. 
Paragraph 78 
Speaks of the accreditation of laboratories. 
30. Is the Institute for Public  Health the accreditation agency? 
Answer:  
The Institute for Public Health is  not the accreditation agency.  In Croatia there is only one national 
accreditation body - Croatian Accreditation Agency ( HAA).  The Institute for Public Health has 48 
laboratories, 8 of which have been accredited by  the Croatian Accreditation Agency, according to the 
standard HRN EN ISO/IEC 17025. 
Description of Croatian Accreditation Agency an d its responsibilities as accreditation agency are 
given in Paragraph 57.  Therefore, accreditati on of laboratories can be undertaken only by the 
Croatian Accreditation Agency.  
QUESTIONS FROM ARGENTINA  
Report by the Secretariat (WT/TPR/S/227)  
II. TRADE AND INVEST POLICY FRAMEWORK 
1. Paragraph 9:  According to the report, Croatia  has continued to reform its policies in trade 
and related areas with the objective of bringing domes tic legislation into line with the EU.  However, 
the report points out that the process is still ongoing. 
What is the Croatian Government's timeframe for completing the process of bringing its trade 
policies into line with the EU? 
Answer:  
On the day of the accession to the EU Croatia will assume all rights and obligations deriving from the 
EU Common Commercial Policy since the Croatian ma rket will become an integral part of the 
internal market of the Community. At the same time the European Commission will assume the 
competence for trade policy-related issues. 
Provisions of the Croatian Trade Act regulating tr ade policy and operating with foreign countries 
follow the idea of the EU legislation that is directly  applicable. On the day of the full membership of WT/TPR/M/227/Add.1 
Page 86  
 
 Croatia in the EU, provisions of the Trade Act regul ating conditions for trade performing with foreign 
countries, trade protective mechanisms and limitations of trade performing will be put out of force.  
2. Paragraph 14:  According to the report, as part of its Strategic Development Framework, the 
Ministry of the Economy, Labour and Entrepreneu rship (MELE) is implementing the Croatian Export 
Offensive Strategy 2007-2010 to pr omote exports.  In this regard, the Competitiveness Strengthening 
and Internationalization Programme were launche d in 2009 with the aim of supporting  
export-oriented companies and networking in export clusters. 
What, exactly, is this support for companies?  What requirements do the companies need to 
meet in order to be eligible for this support? 
Answer:
 
Based on the export strategy, The Competitiveness St rengthening and Interna tionalization Programme 
has been developed with the objective to increase  the level of internationalization of Croatian 
economy through strengthening the capacities of e xport oriented SME's in developing new and 
competitive products.  The program is a combin ation of six incentive  measures; three are 
implemented at the level of individual entrepre neurs and three at the level of association of 
entrepreneurs (clusters) during a joint ap pearance on the international markets.  
The program is implemented as a grant scheme w ith the following priorities:  establishment and 
incorporation of procedures for the testing and cer tification of Croatian products in order to ensure 
compliance with International Quality standards;   improvement of marketing, promotion and 
presentation of Croatian products on the new market s and organization of training for staff in 
technical, marketing and quality assurance department s in order to ensure that the companies have 
human resources able to meet and implement the requirements needed to enhance their 
competitiveness.   
Activities co-financed by this program are: particip ation in international trade fairs, marketing 
activities, branding and design, developing new produc t, adoption of technical and quality standards 
etc.  Eligibility of potential applicants:  to be  an export oriented company /be a registered SME 
according to the Croatian definition (micro enterpris es with less than 10 employees are not eligible);  
Be an export-oriented SME (at least 25% of the turn over in the previous fiscal year is gained from the 
exports);  and be fully privately owned;  be legall y registered as per Croatian legislation, be able to 
demonstrate a profit, solvency etc. The supports th rough these horizontal measures are in line with EU 
state aid rules for SME's.  
Regarding the activities of joint appearance on the international market, the support is given to 
network of companies (clusters) and in coope ration with Chamber of Economy and Trade and 
Investment Promotion Agency for the organisation of joint exhibitions of Croatian economy on trade 
fairs, organisation of trade missions and support to the organisation of representative offices of 
Croatian economy on target markets. 
(4) Investment Regime  
3. In paragraphs 32 to 39, the report provides a general description of the investment regime in 
force in Croatia.  However, there is no explanation of the Government's specific requirements for 
foreign investment.  WT/TPR/M/227/Add.1 
 Page 87 
 
 
 Could you please explain what these requirements are? 
Answer:  
In 2006 Croatia enacted new Investment Promotio n Act (OG 138/06) that introduced several new 
measures in order to improve business and investor e nvironment, as well as to attract new (greenfield) 
foreign investments.  New investment incentive scheme is focused on production process activity, 
establishment of technology and innovation centr es as well as investments into business support 
activities.  
The Act makes no difference between domestic and fore ign investors, in the mining of priority in 
granting of incentive measures and grants them eq uivalent treatment.  New investment incentive 
scheme has no specific requirements for foreign investment. 
III. TRADE POLICIES AND PRACTICES BY MEASURE (1) Measures Directly Affecting Imports
 
(ii) Customs procedures and valuation  
4. According to paragraph 9 of the report, customs controls in Croatia are based on risk 
analysis using automatic data processing methods, ba sed on criteria developed in Croatia and, where 
appropriate, at the international level. 
In what specific cases is the risk analysis conducted using methods b ased on criteria developed at the 
international level?  What are these criteria? 
Answer:  
Customs Administration while making criteria for Sy stem of risk analysis as one of the data and 
information resources uses also international sources (for example UN Council Resolution on the 
implementation of measures that was taken over and adopted by Croatia and which is published in the 
Official Gazette).  Criteria received through inte rnational administrative assistance are additionally 
built in (for example, through international ad ministrative assistance some negative results of 
subsequent verification of proof of origin were id entified).  "Criteria developed at the international 
level" means that data and information gathered in  this way are incorporated  in system as much as 
possible. 
5. According to paragraph 10 of the report, the new Customs Act introduced a system of 
granting "authorized economic operator" status th rough the Customs Administration, but the system 
is not yet operational. 
What are the requirements for obtaining authorized economic operator status? 
When will this system finally become operational? 
Answer:  
The Customs Act lays down criteria for granting the status of "authorized economic operator", and at 
the same time prescribes that the Government of Cr oatia shall set out the conditions for granting the 
status of "authorized economic operator", conditions  for granting the approval to apply the simplified 
procedure, the type and scope of facilities which may be granted with regard to safety-related checks, WT/TPR/M/227/Add.1 
Page 88  
 
 as well as terms, conditions and procedure under whic h the status of "authorised economic operator" 
may be suspended or withdrawn.  
The implementation provisions within the meaning of the aforementioned conditions have not been 
enacted to date, as it has been assessed that no administrative and implementation-technical 
prerequisites for practical application of the subs tance of the institution of an authorised economic 
operator exist at the moment.  
The legal criteria for granting the status of "authorised economic operator" includes: appropriate compliance with customs regulations in the previous period of time, a satisfactory system 
of keeping accounts and, if necessary, transport f iles, which enables appropriate customs checks, 
fulfilling the conditions required to perform the act s of representation in a customs procedure, in 
accordance with specific regulations, proof of fina ncial capacity, if necessary, appropriate safeguard 
and safety measures. 
As a final point we would like to emphasize fact th at the customs service of Croatia is undertaking all 
the necessary activities to establish such a system by  the date of accession of Croatia to the EU at 
latest. 
6. Paragraph 12 of the report states that for cu stoms valuation, Croatia uses reference prices on 
an ad hoc basis, but that these prices are not official. 
How can the reference price list be obtained?  Are these prices available on the Internet?  What does 
the report mean when it says th at they are used on an " ad hoc " basis and that they are not "official"? 
Answer:
 
Referent prices are used exclusively as help for customs officers during customs clearance i.e. as 
element of risk analysis when clearing particular  goods.  They are used at clearing used vehicles, 
agricultural machinery and working machines, vessels, fruit and vegetables and flowers.  If there is 
departure from referent prices and doubt in authentic ity of declared data, the customs officer will act 
pursuant to WTO decision 6.1 Cases where customs admi nistrations have reasons to doubt the truth or 
accuracy of the declared value. 
At clearing of used vehicles, agricultural mach inery and working machines and vessels different 
catalogues of average prices in Croa tia or in the market of the country of exporter are used.  At 
clearing of fruit, vegetables and flowers we use database of accepted transaction values for identical or similar goods.  
"They are not official" means that the above mentioned data are only indicator of risk analysis and in 
no way the method of determining customs value.  For this reason, the concerned data is not available 
on the Internet.  The term on "ad hoc" basis mean s that it may appear a need for applying the 
reference price for some other goods in some peri od of time but all based on an assessment of risk 
analysis .  WT/TPR/M/227/Add.1 
 Page 89 
 
 
 (iv) Tariffs, other duties and taxes  
7. According to paragraph 29 of the report, Croatia enacted a new Excise Duty Act which 
entered into force on 1 January 2010 with a view to harmonizing the country's legislation with the 
Community acquis. 
8. What changes have been made in this new Act with respect to the previous one? 
Answer:  
Excise Duties In the area of taxation of tobacco products, in D ecember 2008 the Act on Amendments to the Act on a 
Special Tax on Tobacco Products (OG 152/08) w as adopted, achieving alignment with the acquis .  
This Act also introduced the new basis for taxati on of cigarettes (1000 pieces), and with the already 
existing specific excise duty, introduced the proportio nal excise duty on cigarettes.  Furthermore, the 
Croatian Parliament adopted the Act on Amendm ents to the Act on a Special Tax on Tobacco 
Products (OG 38/09) in March 2009 which, effective from 1 June 2009, abolishe d all differences in 
tax burden among different groups of ci garettes.  This means that as of 1 June 2009 all three cigarette 
groups are subject to the same specific and proportional excise duty (HRK 180.00 on 1000 pieces + 
30% of the retail price). 
With the aim of achieving the alignment of  Croatian excise duty legislation with the acquis , on 
3 July 2009 Croatia adopted a new Excise Duties Act (OG 83/09), which entered into force on 1 January 2010.  This Act has been aligned with  Directive 92/12/EEC and it includes provisions on 
the collection of excise duties on excisable goods  in accordance with the EU acquis (energy, 
electricity, tobacco products, al cohol and alcoholic beverages) .  The Act envisages the application of 
the excise duty-suspension regime, excise warehou ses, authorised operators of tax warehouses, a 
system of excise duty payment guarantees, chargeab ility at the time of release for consumption, 
exemptions from excise duties, movement of ex cise goods with accompanying excise duty documents 
and reimbursements of the excise duty paid.  In a ddition, this Act introduced excise duties on strong 
alcoholic beverages produced by private individuals  for their own consumption, in line with the 
requirements of the EU acquis .  
Furthermore, two implementing regulations have been adopted, namely the Ordinance on Excise 
Duties (OG 1/10) and the Ordinance on Excise Duties Act Implementation Related to Diesel Oil Marked with the Blue Dye for Agriculture, Fisher ies and Aquaculture Use (OG 1/10).  Both of the 
Ordinances entered into force on 2 January 2010.  The latter one aims at establishing more efficient 
control over the use of diesel oil by registering th e approved annual quantities of the blue diesel oil 
and registering its use throughout the year.  Besides the obligation of marking diesel oil with blue dye, 
the Ordinance introduces the obligation of marking diesel oil with C.I. Solvent Yellow 124 indicator 
only in excise warehouse of an authorized warehouse keeper.  
At the time when the Proposal of the Excise Duty Ac t had already entered the legislative procedure of 
the Croatian Government, on 16 November 2008 the Council of the EU adopted a new horizontal 
Directive 2008/118/EC, which shall enter into force on 1 April 2010.  This Directive repealed 
Directive 92/12/EEC and established the legal framework  for computerized monitoring and control of 
the movement of excise goods.  According to the technical consultations between Croatia and the 
Commission services, Croatia will align its excise duty legislation with the new Directive 2008/118/EC until the date of its accession to the EU at  the latest, and adopt amendments to the Act in 
the part relating to the introduction of chargeability for natural gas and electricity. 
The changes in the table III.5 Excise duties 2009.   WT/TPR/M/227/Add.1 
Page 90  
 
 Excise duties 2010.   
I In the field of excise duty on alcohol, alcoholic beverages,  amount of excise duty are defined in 
Article 46 of the new Excise Duties Act (OG 83/09) 
(1) Excise duty on beer shall be paid in the amount of HRK 40,00 per 1% of pure alcohol contained in 
one hectolitre of the finished product.  
(2) Excise duty on still and sparkling wines shall be paid in the amount of HRK 0,00. 
(3) Excise duty on other beverages obtained by fermen ting other than beer and wine shall be paid in 
the amount of HRK 0,00. 
(4) Excise duty on intermediate products containing 15 % vol of pure alcohol or more shall be paid in 
the amount of HRK 800,00 per one hectolitre of the finished product. 
(5) Excise duty on intermediate products containing less than 15% vol of pure alcohol shall be paid in 
the amount of HRK 500,00 per one hectolitre of the finished product. 
(6) Excise duty on ethyl alcohol shall be paid in the amount of HRK 5.300,00 per one hectolitre of 
pure alcohol. 
II In the field of excise duty for energy products and electricity  (Article 70 of the Excise Duties 
Act) tax rate was changed as followed:   
(1) The excise duty basis for energy products sha ll be 1000 kg net weight, 1 000 litres, Gigajoul gross 
calorific value or a cubic meter of an individual ex cise product. If the excise duty basis is determined 
in litres, it shall be measured at the temperature of +15° C. 
(2) The excise duty basis for electricity shall be the quantity of electricity measured in megawatt 
hours. 
(3) The level of excise duty shall be determined as follows: 
1. Petrol used as a motor fuel: 1.1. Leaded petrol falling within CN codes 2710 11 31, 2711 51 and 2710 11 59 HRK 3.600,00 / 1 000 
l  1.2. Unleaded petrol falling within CN cod es 2710 1131, 2710 1141 , 2 710 1145, 2 710 1149 
HRK 2.850,00 / 1 000 l  
2. Gas oil falling within CN codes 2710 19 41 to 2710 19 49 2.1. for motor fuels.............. HRK 2.200,00 / 1000 l  
2.2. for heating ............. HRK 300,00 /1000 l  
3. Kerosene – petroleum falling within CN codes 2710 19 21 and 2710 19 25 
3.1. for motor fuels................ HRK 2.200,00 /1000 l  
3.2. for heating................. HRK 1.752,00 /1000 l  
4. LPG – liquid petroleum gas falling within CN codes 2711 12 11 to 2711 19 00 
4.1. for motor fuels........................ HRK 100,00 /1000 kg 4.2. for heating ...................... HRK 100, 00 /1000 kg   WT/TPR/M/227/Add.1 
 Page 91 
 
 
 5. Heavy fuel oil falling within CN codes 2710 19 61 to 2710 19 69 HRK 110,00 /1000 kg 
6. Natural gas falling within CN codes 2711 11 00 and 2711 21 00 
6.1. for motor fuels.........................HRK 0.00 /m3, 6.2. for heating ........................HRK 0.00 /m3, 
7. Coal and coke falling within CN codes 2701, 2702 and 2704,  
HRK 2.20 / Gj gross calorific value 
8. Electricity falling within CN code 2716 
HRK 0.00 /Mwh, 
9. Biofuels-pure referred to in Artic le 69, paragraph 7 of this Act  
HRK 0.00. 
(4) Excise duty on the energy products referred to in Article 69, paragraph 3, item 1 of this Act not 
listed in paragraph 3 of this Article and on the ener gy products referred to in Article 69, paragraph 3, 
item 2 of this Act shall be paid according to th eir purpose and in the amounts stipulated for the 
equivalent motor fuel or heating fuel re ferred to in paragraph 3 of this Article. 
(5) Excise duty on the energy products referred to in  Article 69, paragraph 3, items 3, 4 and 5, and 
paragraph 4 of this Act shall be paid according to  their purpose and in the amounts stipulated for the 
equivalent motor fuel or heating fuel refe rred to in paragraph 3. of this Article. 
(6) Excise duty on the energy products referred to in Article 69, paragraph 5, item 1 of this Act shall 
be paid according to their purpose and in the amounts stipulated for the equivalent motor fuel. 
(7) Excise duty on the energy products referred to in Article 69, paragraph 5, item 3 of this Act shall 
be paid according to their purpose and in the amount s tipulated for the equivalent heating fuel referred 
to in paragraph 3 of this Article. 
(8) Excise duty on the additives and fillers referred to in Article 69, paragraph 5, item 2 of this Act 
added to the energy product shall be paid in th e same amount as stipulated for the energy product to 
which they are added.  
(9) Excise duty on the gas oil purchased against presentation of the fuel card by the gas oils 
consumers for use in agriculture, fishery and aquaculture  referred to in Article 77 of this Act shall be 
HRK 0.00. 
III:  In the field of excise duty for vessels and ai rcraft, tax rate was changed in the article 6. 
paragraph 2.  (according to of the Act on change and am endments to the Act on excise duty on 
passenger vehicles, other motor vehicles, vessels and aircrafts (OG 12/10) as follows: 
Taxation base – sale price (without VAT) 
in HRK Tax rate (HRK and percentage) 
More than  Up to  
0 200.000,00 5% 
200.000,00  400.000,00 10.000,00 + 6 % on amount over 200.000,00 
400.000,00 600.000,00 22.000,00 + 7 % on amount over 400.000,00 
600.000,00 800.000,00 36.000,00 + 8 % on amount over 600.000,00 WT/TPR/M/227/Add.1 
Page 92  
 
 Taxation base – sale price (without VAT) 
in HRK Tax rate (HRK and percentage) 
800.000,00 1.000.000,00 52.000,00 + 9 % on amount over 800.000,00 
1.000.000,00 1.500.000,00 70.000,00 + 10  % on amount over 1.000.000,00 
1.500.000,00  2.000.000,00  120.000,00 + 11 % on amount over 1.500.000,00 
2.000.000,00 2.500.000,00 175.000,00 + 12  % on amount over 2.000.000,00 
2.500.000,00 3.000.000,00 235.000,00 + 13  % on amount over 2.500.000,00 
3.000.000,00 3.500.000,00 300.000,00 + 14  % on amount over 3.000.000,00 
3.500.000,00 4.000.000,00 370.000,00 + 15  % on amount over 3.500.000,00 
4.000.000,00 and more 445.000,00 + 16  % on amount over 4.000.000,00 
 
9. According to paragraph 31, until 31 December 2009 the Customs Administration of Croatia 
assessed VAT on imported goods according to the custom s value of imports plus customs tariffs and 
excise duties.  However, as from 1 January 2010, the taxable amount has included, in addition, levies 
and similar charges paid at importation of goods , such as commission, packing, transport and 
insurance costs, incurred up to the fi rst place of destination within Croatia. 
What were the reasons for this change in the taxable base? 
Answer:  
The changes of these provisions related to dete rmining tax base at import (Amendments on Law on 
Value Added Tax, OG 87/2009) are de termined with need to adjust to Council Directive 2006/112/EC 
of 28 November 2006 on the common system of value added tax. 
(vii) Standards and other technical requirements  
10. Paragraph 51 of the report states that Croa tia is transposing various elements of the 
EU technical requirements into its domestic legal sy stem by adopting legislation on standardization, 
accreditation and conformity assessment, and metrology.   In this connection, certain sector-specific 
laws are being enacted, such as on chemicals (REACH). 
Where does Croatia stand in its alignm ent with EU technical requirements? 
When is the process expected to be completed? Answer:
 
In the field of ree movement of goods, Croatia h as undertaken a number of activities in aligning its 
national legislation with the requirements of the acquis communautaire  further to its obligations 
arising from the Stabilisation and Association Agreem ent.  These activities are aimed at fulfilling all 
the conditions for EU membership and for Croatia 's participation in the EU internal market. 
In this regard, in accordance with Article 73 of th e Stabilisation and Association Agreement, Croatia 
has made a significant progress in the alignment of its technical legislation concerning requirements for placing products on the market with the requirements of the acquis communautaire.   WT/TPR/M/227/Add.1 
 Page 93 
 
 
 Furthermore, Croatia is obliged to ensure that the legislation in the field of free movement of goods is 
aligned with Articles 34 – 36 of the Treaty on th e Functioning of the European Union (TFEU) – 
previously Articles 28-30 of the Treaty Establishing the European Community - and corresponding court practice of the European Court of Justice.  
Thus, on 29 November 2007, the Government of Croatia  adopted at its session the Action Plan for the 
compliance with Articles 28 -30 of the Treaty es tablishing the European Community (presently 
Articles 34 – 36 of the TFEU), Chapter 1 – Free Movement of Goods. 
The purpose of this Action Plan is to precisely determ ine specific tasks with goals, realistic time limits 
and competent state administration bodies to enable  effective revocation of all measures having an 
effect equivalent to quantitative restrictions on imports and exports  of goods.  This will allow for 
alignment of the legislation of the Republic of  Croatia with Articles 34 – 36 of the TFEU, thus 
enabling free movement of goods, improved comp etitiveness and easier access to goods from the 
Republic of Croatia on the internal market of th e European Union and to goods from the EU on the 
market of the Republic of Croatia.  
The body competent for the process of co-ordinat ing the preparation and implementation of the 
Action Plan for the Compliance with Article 34 – 36  of the TFEU is the Ministry of the Economy, 
Labour and Entrepreneurship.  The implementati on of specific measures shall be within the 
competence of the state administration body in charge  for the application of the relevant legal act. 
Pursuant to the Regulation on the internal organisation of the Ministry of the Economy, Labour and 
Entrepreneurship (OG 41/08), the Internal Market Co-ordination Department within the Directorate 
for Trade and Internal Market is in charge of co-o rdinating the policy relating to the free movement of 
goods. 
The Internal Market Co-ordination Department co -ordinates the process of aligning the legal system 
of the Republic of Croatia with the acquis communautaire  in the field of free movement of goods, 
both in aligned and non-aligned areas.  
The Department is responsible for notifications a nd the co-operation with international organisations 
in the field of standards, technical regulati ons and conformity assessment procedures.  Its 
representatives participate in the work of the Internal Market Committee of the European 
Commission, in which Croatia, as a candidate country, has observer status.  They also participate in 
other meetings related to the implementation of the acquis  in the field of free movement of goods.  
Upon Croatia's accession to the EU, the Department w ill be in charge of activities related to resolving 
problems arising from incorrect application of the re gulations regulating the internal market, and the 
implementation of measures within the SOLVIT system. 
Furthermore, the Department will be a main contact  point responsible for the implementation of the 
Regulation (EC) No. 764/2008 of the European Parlia ment and of the Council of 9 July 2008 laying 
down procedures relating to the application of certain  national technical rules to products lawfully 
marketed in another Member State and repealing Decision No. 3052/95/EC. 
According to the submitted reports by the authorities competent to carry out th e foreseen measures of 
the Ministry of Agriculture, Fisheries and Rura l Development; the Ministry of Environmental 
Protection, Physical Planning and Construction; the Ministry of Health and Social Welfare;  the Ministry of the Sea, Transport and Infrastructure; the Ministry of Defence;  the Ministry of the Economy, Labour and Entrepreneurship;  the Ministry  of Regional Development, Forestry and Water 
Management;  the Ministry of the Interior and the State Inspectorate, it is clear that the measures are 
being implemented according to the foreseen dynamics. WT/TPR/M/227/Add.1 
Page 94  
 
 Through the implementation of the Action Plan 78 legal acts identified were which include provisions 
representing measures having effect e quivalent to quantitative restrictions.  Majority of the mentioned 
legal acts were amended or repealed and the restricti ons that were contrary to Articles 34 and 35 of the 
TFEU were removed.  As for one part of the re maining legal acts, a mutual recognition clause was 
incorporated whereas the rest of them will be amended in 2010 and 2011.  In accordance with the 
provision of Article 36 of the TFEU, one measure is  considered justified (the Ordinance on basic 
requirements for salt for human consumption, OG 15/97). 
The realisation of determined tasks set out in th e Action Plan enables free flow of goods, increased 
competitiveness of the economy and easier access of goods  from the Republic of Croatia to the internal 
market of the European Union and easier access of goods from the European Union to the market of 
the Republic of Croatia.  
REACH Regulation
 
Implementation of the REACH Regulation had started in Ma y 2008 by adoption Act on the 
Implementation of Regulation (EC) No. 1907/2006 of  the European Parliament and of the Council 
concerning the Registration, Evaluation, Authoriza tion and Restriction of Chemicals (OG 53/08) and 
Act on amendments of the Chemicals Act (OG 53/08) in order to adapt it with the REACH Regulation 
(new definitions of substance and polymer,  downstream user, distributor and recipient of a substance 
or of a preparation, provisions on safety data sheet). 
Implementation had continued in 2009 by establishing  REACH helpdesk in according with the Article 
124 of the REACH Regulation in the Ministry of Health and Social Welfare (helpdesk-
reach@mzss.hr ) as from 1 June 2009 and by adopting Ordinance on safety data sheet (OG 39/09) in 
March 2009 in according with the Annex II of the REACH Regulation. 
Continuation of the implementation is foreseen in  I quarter 2010 by adopting List of dangerous 
chemicals whose marketing is prohibited or limited in according with the Annex XVII of the REACH Regulation (restrictions on the manufacture, placing on the market and use of certain dangerous substances, preparations and articles) a nd Commission Regulation (EC) No. 552/2009 of 
22 June 2009 amending Regulation (EC) No. 1907/ 2006 of the European Parliament and of the 
Council on the Registration, Evaluation, Authori zation and Restriction of Chemicals (REACH) as 
regards Annex XVII. 
Further implementation is also subject to change as the EU is currently reviewing legal and technical 
aspects of possible transitional periods to be granted in respect of implementation of certain provisions. 
(3) M
EASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 10. According to paragraph 111 of the report, Cr oatia is implementing a State Aid Programme for 
small and medium-sized enterprises for the period 2008-12 involving measures such as State aid and 
financing of SMEs through loans and subsidized interest rates. 
What are the requirements for an SME to be eligible for these loans? 
What are the amounts and terms of the loan? What, exactly, are these subsidized interest rates?  WT/TPR/M/227/Add.1 
 Page 95 
 
 
 Answer:  
Credit projects of the Ministry of the Economy, Labour and Entrepreneurship The Ministry of the Economy, Labour and Entreprene urship carries out two projects of crediting local 
development projects in cooperation with counties, the City of Zagreb and commercial banks.  The 
beneficiaries of the credits are small and medium -sized companies, crafts and cooperatives in 100% 
private ownership, having a registered line of prod uction and investing in the territory of Croatia.  
Credit resources are intended for purchase, buildin g and arrangement or enlargement of economic 
facilities, equipment procurement and working capital.   The costs of the credit handling are up to 1% 
of the credit granted, while the guarantee amounts to 1:1.3. An entrepreneur may use guarantees of the HAMAG or of the local guarantee agency. 
Project "Local development projects of micro crediting". 
Credits amount from HRK 35,000.00 to HRK 200,000.00 w ith a maximal annual interest rate of 9%, 
with interest subsidy of 1% of the Ministry of the Economy, Labour and Entrepreneurship and 1% of 
the county/the City of Zagreb.  The credit should be returned in 5 year period with the possibility of a 
grace period of one year.  Usage period is 6 months. 
Project "Local development projects of small business"  
Credits amount from HRK 200,000.00 to HRK 5,000,000. 00 also at maximal annual interest rate of 
9%, but with subsidy of 2% of the Ministry and 2%  the county/the City of Zagreb.  The credit should 
be returned in 10 years, with the possibility of  a grace period of two years.  Usage period is 
12 months. 
QUESTIONS FROM HONG KONG, China
 
Report by the Secretariat (WT/TPR/S/227)  
MFN Exemptions (p. x, para. 19; p. 83, para. 36)  
Croatia's schedule of specific commitments includ es five exemptions from MFN treatment for some 
areas of road transport, audiovisual services and real estate services.  Four of them are of an indefinite intended duration, and one is for temporary duration. 
1. We are of the view that MFN exemptions defy  the basis for participation in the multilateral 
trading system based on the MFN principle an d would prevent any negotiations for further 
liberalization and specific commitments in accordan ce with Article XIX of the GATS.  Moreover, 
MFN exemptions of indefinite duration are inco nsistent with the GATS Annex on Article II 
Exemptions, which requires that all MFN exemptions  maintained by Members should be reviewed 
from time to time and be in principle not more than  10 years in duration.  For systemic reasons, we 
would like to urge Croatia to consider removing the exemptions in its next offer.  In particular, we 
would like to know about Croatia's plan to remove the MFN exemption on "Real Estate" sector which 
is meant to be of ‘temporary' intended duration only. 
Answer:
 
By acceding to the WTO, Croatia undertook comprehe nsive and extensive commitments on trade in 
services.  A Croatian Schedule of Specific Commitments on Services, as a result of the accession 
process, shows a very large number of sectors and sub-sectors included and also high level of undertaken commitments.  In figures, 11 sectors and 122 sub-sectors are included which represent WT/TPR/M/227/Add.1 
Page 96  
 
 almost 80% of total, including all major sector s and sub-sectors.  The level of undertaken 
commitments is generally higher then the leve l of commitments undertaken by founding WTO 
members and in particular by WTO members at comparable level of development. 
Therefore the position of Croatia is that provisions  relating to the specific situations of Recently 
Acceded Members should be included within the future modalities on the assumption of commitments 
in the field of trade in services as well.  
The positions of Croatia in this r ound of negotiations in the field of trade in services are based on the 
already achieved high level of liberalisation and the commitments undertaken by Croatia in the 
accession process that do not leave much space for further liberalisation.  
In this phase of the EU negotiation process, Croatia  does not consider removing the MFN exemptions.  
According to the provisions of the Amendments to the Act on Ownership and Other Proprietary 
Rights from 2008 (OG 146/08), that came into force as of 1 February 2009, Croatia equalized the right of EU Member Sates’ citizens to acquire real estate property in Croatia with Croatian citizens.  
The basis for such liberalisati on was the obligation undertaken according to the Stabilisation and 
Association Agreement (SAA) that came into force on 1 February 2005.  The said liberalisation, again 
according to the SAA, does not concern agricultural land and areas included in Nature Protection Act. 
In regard to the third countries, the said Act did not envisaged further liberalisation.  For the third 
countries' citizens acquiring of the real estate prope rty in Croatia is possible only upon the approval of 
the Minister of justice and if there is reciprocity. 
The novelty, concerning Croatian and all foreign citizens,  in regard to the previous period is that all 
information needed in order to acquire the real estat e property in Croatia are available at the web-site 
of the Ministry of Justice;  for example there is a list of countries that have, or are in the process of 
establishing, reciprocity with Croatia in regard to the real estate acquirement. 
Further liberalisation of the real estate property acqui ring in Croatia is not envisaged at the moment.  
Telecommunications
 (p. 87, para. 54)  
2. We are pleased to note from the Secretariat Report that the monopoly of Croatian Telecom 
has been ended and liberalization of services in fi xed electronic communications network has resulted 
in higher market competition and, in turn, lower tariffs.  The above indeed well illustrates the 
substantive benefits that liberalisation would bring to  individual sectors and in turn the economy as a 
whole.  In the light of this, we would like to know if Croatia has any plan to take out further liberalisation measures in the telecommunication services sector for the purposes of lowering cost, 
promoting competition and e nhancing market efficiency. 
Answer:
 
As of July 2008 Croatia has implemented ne w Electronic Communications Act, based on 2002 
Framework, with relevant market s as defined by the 2007 EC Reco mmendation on relevant markets.  
According to the transitional provisions from the Electronic Communications Act all remedies 
imposed based on the Telecommunications Act ar e in force until the NRA (HAKOM) finishes 
relevant market analysis according to the new framework. 
In July 2009 HAKOM has finished analyzing 9 (nine) relevant markets according to the new law.  All 
nine markets are wholesale markets.  In this pr ocess HAKOM analyzed the relevant markets of call 
termination in public communicati on network provided at fixed lo cation, call transit in public  WT/TPR/M/227/Add.1 
 Page 97 
 
 
 communication network provided at fixed location, call origination in pub lic communication network 
provided at fixed location, market of the wholesa le access to the network infrastructure (which 
includes local loop unbundling) and wholesale broadband access.  
Croatian Telecom has been determined SMP operato r on following markets according to the new law: 
a. call termination in public communication network provided at fixed location,  
b. call origination in public communication network provided at fixed location,  
c. wholesale access to the network infrastructur e (which includes local loop unbundling)  
d. wholesale broadband access. 
Along with the SMP notifications following remedies  have been imposed on Croatian Telecom on all 
relevant markets. 
• access obligation 
• nondiscrimination obligation 
• transparency obligation (Must publish RIO) 
• price control and cost accounting 
• accounting separation 
Also obligation to provide carrier selection (CS) a nd carrier preselection (CPS) has been imposed on 
the call origination market. 
Furthermore HAKOM is in the process of analyzing the relevant retail markets in fixed network and 
relevant markets related to provision of the leased lin es services.  Since the process is currently under 
way we cannot presume the results of market analyses and therefore cannot provide an answer as to 
what measures will be taken in those markets. 
Tourism ( p. 95, para. 82)  
3. We note from the Secretariat Report that in vestors in tourism ha ve access to incentives 
granted under the Investment Promotion Act.  We ar e interested in knowing what kinds of incentives 
are granted.  Would Croatia also enlighten us on wh ether these incentives are pr ovided to both local 
and foreign investors on a non-discriminatory basis? 
Answer:  
As it was stated in the Secretariat Report under M easures affecting production and trade, Investment 
Promotion Act (OG 138/06) provides incentive meas ures which apply to investments in the 
manufacturing sector, technology and innovation cen tres and strategic business support services, from 
which can benefit both foreign and domestic invest ors. Investment Promotion Act does not ensure 
incentive measures for investments in tourism. 
Specific incentives and loan programmes for inve stors in tourism which are operated under the 
Investment Promotion Act through the Croatian Bank for Reconstruction a nd Development (HBOR) 
and with the participation of commercial banks, ar e provided to both local and foreign investors on a 
non-discriminatory basis, under the condition that the investor is registered for business operations 
under the laws of the Republic of Croatia. WT/TPR/M/227/Add.1 
Page 98  
 
 QUESTIONS FROM KOREA
 
Report by the Secretariat (WT/TPR/S/227  
Question 1 :  Secretariat Report, page 10, paragraph 21 
Korea notes that FDI inflow into Croatia is concen trated in the services sector, taking in roughly 2/3 
of the total FDI inflow.  
1. Could Croatia provide an assessment of this phenomenon? 
Answer:  
Service sector in the structure of FDI prevails due  to the fact that large portion of FDI inflows was 
heading to financial intermediati on sector (41%) and telecommunication sector (7%) which is in the 
principal a result of the privatization process.  The second reason is that Croatia became attractive to 
global retails chains therefore large portion of the wholesale and retail sector is currently present in 
the structure of FDI inflow (11%).  Third reason is that Croatia is traditionally tourism oriented 
country because of the natural predisposition which th e country has in terms of beautiful Adriatic 
coast and nature.  Therefore Croatia is constantly  attractive for investments into tourism sector. 
2. In light of the Secretariat view ("attracti on of greenfield FDI is key to increasing overall 
growth potential"), what measures have been taken  by the government to attract greenfield FDI? 
Answer:  
In 2006 the Republic of Croatia enacted new Inv estment Promotion Act (OG 138/06) that introduced 
several new measures in order to improve business and investor environment, as well as to attract new (greenfield) foreign investments.  New investme nt incentive scheme is focused on production process 
activity, establishment of technology and innova tion centres as well as investments into business 
support activities.  The Act makes no difference betw een domestic and foreign investors, in the 
mining of priority in granting of incentive measures and grants them equivalent treatment.  In comparison to the previous Investment Promo tion Act (OG 73/00), investment incentives are now 
available even for the existing companies, not only newly established ones.  Important change is also 
a significantly lower minimum threshold required for eligibility for incentive measures (from 4 mil 
HRK to 300.000 €).  
As a completely new measure, incentives for large investment projects - investment projects of 
significant economic interest were introduced, provi ding additional incentives for large investments in 
regions (counties) with registered unemployment rate exceeding 20%.  
It should also be mentioned that new Act on Inve stment Promotion defined all key provisions for 
complete alignment with the acquis communautaire " of the EU including the definition of eligible 
investment costs and maximum intensity of aid. It  represents an instrument of regional development 
of Croatia, an instrument to increase regional co mpetitiveness as a main pillar of future overall 
economic development. 
Question 2
 : Secretariat Report, page 11, paragraph 23 
  Secretariat Report, page 18 paragraph 19 
3. Could Croatia further elaborate on the presen t status of its accession negotiations with the 
EU?   WT/TPR/M/227/Add.1 
 Page 99 
 
 
 4. What are the some of the issues being di scussed in those chapters where discussions are on-
going? 
5. What are the chapters in whic h negotiations have not "opened"? 
Answer:  
1) Since the opening of accession negotiations 30 chapte rs have been opened, whereas:  17 chapters 
have been provisionally closed, while in 2 chapters the verification of the fulfilled closing benchmarks 
is underway and in 11 chapters, Croatia is curre ntly working on fulfilling the closing benchmarks. 
2) Negotiations have yet to be opened in chapte rs:  8. Competition Policy;  23. Judiciary and 
Fundamental Rights; 31. Foreign, Security and De fense policy;  34. Institutions and 35. Other. 
Question 3  : Secretariat Report, page 23, paragraph 36 
  Secretariat Report, page 25, paragraph 3  
Korea notes that Croatia has in place a procedure re quiring "special certificate of approval, license or 
other document" for investment in some sectors. 
6. Could Croatia provide the relevant criteria u sed by the authorities in determining whether to 
approve/disapprove a particular appl ication in the area of:  energy, chartered international 
forwarder, professional activities of environmental protection, veterinary activities. 
Answer:  
These are conditions for conducting activities mentioned in the question: Energy The Croatian Energy Regulatory Agency carries out the procedure of issuing, extension, transfer and 
suspension of the license for carrying out of energy  activity in line with the Ordinance on Licenses for 
Carrying out Energy Activities (OG, 107/09).  This Ordinance sets forth the conditions for issuing, 
extension, transfer and expiry of the licence for carrying out the energy activities, as well as the form, 
contents and method of register maintena nce of the issued and suspended licences. 
Customs proceedings Act on conditions for representation in customs proceedings (OG 92/01) is in force since 
1 January 2002.  Permission for representation in  customs proceedings is given by Customs 
Directorate, Headquarters. 
Environmental protection The Ministry of Environmental Protection, Physi cal Planning and Construction issues approvals for 
the performance of expert activities of environm ental protection pursuant to the Environmental 
Protection Act (OG 110/07) and the Regulation on conditions for issuing permits for performing 
professional environmental activities (OG 7/97).  The Ordinance on conditions for issuing permits to 
legal persons for performing pr ofessional environmental activities is currently undergoing the 
adoption procedure.  The Ministry, after ha ving performed an inspection of the submitted 
documentation, depending on the application, adopt s a decision on whether the applicant – a legal 
person – fulfils the prescribed conditions for being issued the permit.  A legal person may submit an 
application for an approval for performing activities re lated to:  developing studies on the significant WT/TPR/M/227/Add.1 
Page 100  
 
 impact of plans or programmes on the environm ent (strategic impact study);  developing 
environmental impact studies including the nature im pact assessment study for the planned project;  
developing technical and technological conceptual desi gns for installations in relation to integrated 
environmental protection requirements;  deve loping environmental protection programmes;  
developing environmental status  reports;  developing safety re ports; developing environmental 
protection studies for projects which are not subject  to environmental impact assessment; developing 
and auditing special studies, budget calculations a nd projections for the needs of environmental 
components;  assessment of environmental damage ;  monitoring in the field of environmental 
protection;  performing professional activities for the needs of the Environmental Pollution Registry.  
Veterinary activities 
Specific conditions for conducting veterinary ac tivities are defined in the "Ordinance on the 
conditions to be fulfilled by veterinary organisa tions, veterinary practice and veterinary service" 
(OG 45/09). 
The requirements include:  as regards the buildin g: its location/distance from schools, nurseries, 
hospitals and similar buildings;  as regards the r ooms:  height;  temperature;  illumination;  
construction of walls, floors, doors and windows;  storing of medicinal waste;  as regards the 
equipment:  materials, number, maintenance. 
Specific requirements are also laid down for personnel (minimum number, degree), vehicles and 
waste disposal. 
The "Ordinance on conditions to be fulfilled by le gal persons in the wholesale and retail sale of 
veterinary medicinal products, medicated premix es and veterinary medical devices" (OG 73/99) 
contains provisions on the require d personnel, compulsory records, rooms and storage of veterinary 
medicinal products. 
7. Could Croatia provide statistics on the ratio of refusal of application for those sectors listed 
in Q3-1 above (i.e., energy, chartered interna tional forwarder, professional activities of 
environmental protection, veterinary activities)? 
Answer:
 
Energy In the course of 2007 and 2008, the Governing Coun cil of the Croatian Energy Regulatory Agency 
did not refuse any application for issuing/prolon gation of licences for energy activity performing, 
while in 2009 refused totally 14 applications. 
All the applications were refused because th e applicants have not  submitted the required 
documentation in accordance with the Rule Book on licences for energy activity performing and 
therefore have not verified their technical qualifica tion or specialization or financial qualification.  
Customs proceedings All together 629 permissions were given to le gal entities which submitted required proof for 
satisfying terms for issuing permission according to the Act .  This refers on period since the 
beginning of implementation of the above mentione d Act till today.  Today there are 589 permissions 
in force.  40 issued permissions were abolishe d because of liquidation of legal entities or later 
termination for satisfying some terms for existence of permission.  33 permissions were rejected 
because of not fulfilling some of prescribed condition s what is determined while controlling submitted  WT/TPR/M/227/Add.1 
 Page 101 
 
 
 documents i.e. the procedure was suspended becau se of later not submitting required documents upon 
written request of Customs Directorate. 
Environmental protection In Croatia there are currently around 80 legal persons holding a Decision by the Ministry of 
Environmental Protection, Physical Planning a nd Construction for perform ing various professional 
environmental activities.  
On average, the Ministry annually receives 55 a pplications for approval issuance, out of which 
4 applications are rejected because the criteria prescribed in the Environmental Protection Act (OG 110/07) and the Regulation on conditions fo r issuing permits for performing professional 
environmental activities (OG 7/97) are not fulfilled. 
Veterinary activities 
In regard to the statistics on the ratio of refusal of application, Re public of Croatia according to the 
recent data had only one refusal of the applicati on for the conducting of veterinary activities.   
8. Could Croatia provide a rationale for in cluding medicinal products and medical devices in 
the category of "sensitive products"? 
Answer:
 
They are considered as specific category because medi cinal products and medical devices have to be 
extensively regulated in order to ensure the highest possible protection of public health 
Question 4 :  Secretariat Report, page 61, paragraph 116  
According to the Secretariat report, the privatiza tion process has met with some criticism by the EU 
("Overall, progress has been criticized as uneven and determined by institutional weakness").  
9. Could Croatia further elaborate on the reason for/nature of the comment? 
Answer:  
Privatization in Croatia is being carried out in accordance with the Privatization Act, adopted in 
March 1996 and decisions of the Government of Croatia.   
Public companies in the portfolio of Croatia w ill be privatized pursuant to decisions of the 
Government in the dynamics determined by the Gove rnment itself.  The portfolio of the Republic of 
Croatia contains 21 public companies and two of them, INA and HT, were privatized pursuant to 
special acts.  In Croatia, further privatization of the remaining public companies and enterprises 
already in the process of privatization will be carri ed out in accordance with the Privatization Act and 
decisions of the Government.  
The mentioned evaluation of the EU (footnote No. 147) we could not comment. Question 5
:  Secretariat Report, page 65, paragraph 127  
Paragraph 127 of the Secretariat report details the state aid granted by the Croatian government.  In 
particular, Korea notes that the shipbuilding sector is  one of the major beneficiaries of this aid.  WT/TPR/M/227/Add.1 
Page 102  
 
 10. In this context, could Croatia elaborate on its plan/timeline to reduce its sector specific state 
aid to the shipbuilding industry? 
Answer:
 
Croatia has significantly reduced state aid to sh ipbuilding sector in 2009 and further reduction is 
anticipated for 2010. In accordance wi th the results of the negotiation with the EU Croatia has a goal 
to fully implement EU rules for state support related to shipbuilding. 
Question 6 :  Secretariat Report, page 81, paragraph 32  
With respect to the shipbuilding industry  
11. Could Croatia explain whether a privatizati on plan is in place with respect to this sector? 
12. If so, could Croatia explain its salient features/timeline, etc.? 
Answer:  
Privatization of Croatian shipyards is already unde rway.  The privatization tenders, harmonized with 
the management boards and trade unions, apart of o ffering the adequate price for shares, to take over 
the commitments, as well as preparing the restructur ing programme, has to be approved by Croatian 
Competition Agency.  The tenders will provide for the possibility of changing the production 
programme and for particular shipyards changes of activity, providing for long-term sustainability of 
jobs for current employees.  
On March 15, 2010 the Croatian Privatization Fund has the total of 6 tenders for shipyards, as 
follows:  "Brodogra đevna industrija 3. Maj" d.d.  Rijeka;  "Brodogradilište Kra ljevica" d.d. Kraljevica;  
"Brodogra đevna industrija Split" d.d. Split;  "Brodotrogir" d.d. Trogir;  "Uljanik" d.d. Pula and 
"Brodosplit - Brodogradilište specijalnih objekata" d.o.o. Split. 
The deadline for submission of bids for all of the shipyards is April 19, 2010. 
Questions contained in the Republic of Korea's statement made during the second day of the 
TPR meeting, 26 March 2010  
1. On page 81 of the 1st day replies, specifically Q3, we w onder if Croatia could be a little more 
specific with regards to the criteria used by the re levant authorities to screen request for approvals.  
In this context, we wonder if they could provide, in their revised final written answers, an English 
translation of the relevant sections of "Ordi nance on Licenses for Carrying out energy activities 
(OG 107/09), Act on conditions for representation in customs proceedings (OG 92/01), and relevant 
sections of OG 110/07 and OG 7/97.  
Answers  
Energy activity  
MINISTRY OF ECONOMY, LABOUR AND ENTREPRENEURSHIP  
Pursuant to Article 17, Point 2 of the Energy Act (OG 68/01, 177/04 and 76/07), the Minister of 
Economy, Labour and Entrepreneurship herewith passes the  WT/TPR/M/227/Add.1 
 Page 103 
 
 
 REGULATION 
ON LICENSES TO CARRY OUT ENERGY ACTIVITES 
I GENERAL PROVISIONS 
Article 1 
(1) This Regulation shall stipulate the conditions of i ssuing, renewal, transfer and expiry of licenses to 
carry out energy activities, as well as the form, conten ts and manner of keeping the register of issued 
and withdrawn licenses.   
(2) The process of issuing, renewal, transfer and e xpiry of licenses to carry out energy activities is the 
responsibility of the Croatian Energy Regulatory Ag ency (hereinafter:  the Agency).  The Agency 
shall keep the register of issued and withdrawn licenses. 
Article 2 
(1) Terms used in this Regulation shall have meani ngs as stipulated in the Energy Act and Act on the 
Regulation of Energy Activities. 
(2) Terms used in this Regulation shall also have me anings as stipulated in the Electricity Market Act, 
Gas Market Act, Act on the Generation, Distributio n and Supply of Thermal Energy and Act on Oil 
and Oil Derivatives Market (hereinafter:  other energy related legislation). 
Article 3 
Provisions of this Regulation shall apply to energy activities under the Energy Act and other energy 
related legislation, except for activities which do not  require a license to carry out energy activities 
under the Energy Act and other energy related legislation. 
II ISSUE, RENEWAL AND TRANSFER OF LICENSES 
License to carry out an energy activity 
Article 4 
(1) An energy activity may be carried out by a legal or natural person upon obtaining the license to 
carry out an energy activity from the Agency.   
(2) The Agency may issue the license  to carry out an energy activity to a legal or natural person 
registered for such activities in the Republic of Cr oatia and with required technical, professional, and 
financial qualifications as stipulated by this Regulation, provided there are no impediments under 
Article 17, Point 1, Items 5 and 6. of the Energy Act. 
(3) Any and all issues related to the issue, renewal,  transfer and expiry of a license to carry out an 
energy activity not governed by the Energy Act, Act on the Regulation of Energy Activities, other 
energy related legislation and this Regulati on, shall be governed by the Law on General 
Administrative Procedure. WT/TPR/M/227/Add.1 
Page 104  
 
 Technical qualifications for carrying out an energy activity 
Article 5 
(1) Technically qualified for an energy activity is  a legal or natural person with facilities and/or 
equipment for carrying out an energy activity a nd documentation under the Law on Physical Planning 
and Construction and specific regulations on the basi s of which the facilities and/or equipment can be 
used, operated, or on the basis of which energy  activities can be carried out, and/or with IT, 
telecommunications and other equipment for carrying out an energy activity. 
(2) Technically qualified for an energy activity is a legal or natural person with road, rail and water 
transportation vehicles, and documentation required under specific regulations on the basis of which 
transportation of cargo or an energy activity can be carried out. 
(3) The legal person may own the facilities and/or eq uipment under Point 1 of this Article, and road, 
rail and water transportation vehicles from Point 2 of this Article, or u se them based on a lease 
contract or another agreement with the owner. 
(4) The legal or natural person must accompany th e application for license to carry out an energy 
activity to the Agency with all valid contracts, if any, signed with other lega l persons which have an 
effect on the technical qualifications  of the legal or natural person. 
Professional qualifications for carrying out an energy activity 
Article 6 
(1) Professionally qualified for carrying out an energy activity is a legal or na tural person employing a 
sufficient number of workers professionally qua lified for carrying out an energy activity. 
(2) Professionally qualified employees from Point 1 of th is Article are legal or natural persons with 
appropriate employment contracts signed with the legal or natural person applying for the license to 
carry out an energy activity. 
(3) The legal or natural person must accompany th e application for license to carry out an energy 
activity to the Agency with all valid contracts, if any, signed with other lega l persons which have an 
effect on the professional qualifications  of the legal or natural person. 
Financial qualifications for carrying out an energy activity 
Article 7 
(1) Financially qualified for an energy activity is a legal or natural person havi ng at its disposal funds 
(cash in the account with a commercial bank) sti pulated in Appendix II to this Regulation. 
Application for license to carry out an energy activity 
Article 8  
(1) The legal or natural person must submit an a pplication for the license to carry out an energy 
activity to the Agency on a ZDOED form enclosed as Appendix III to this Regulation and an integral 
part hereof.  WT/TPR/M/227/Add.1 
 Page 105 
 
 
 (2) If the legal or natural person intends to perform  several energy activities it must apply for each 
activity separately. 
Article 9 
(1) The application to the Agency fo r the license to carry out an energy activity by the legal or natural 
person shall be accompanied with the following evidence: 
– documents issued by relevant bodies evidencing the registration for carrying out an energy activity, 
if the Agency is unable to determine whether the le gal or natural person is re gistered for carrying out 
such work by querying the public register  – documents issued by relevant bodies evidencing the technical qualifications for carrying out an energy activity,  
– documents issued by relevant bodies evidencing the professional qualifications for carrying out an 
energy activity,  – documents issued by relevant bodies evidencing the financial qualifications for carrying out an 
energy activity,  – a statement by a responsible person certifyi ng that there were no criminal procedures 
- against any members of the management board of the legal person or other persons accountable to 
them for the past five years, attested by the notar y public, or a statement by the natural person that 
there was no criminal procedure against it in the p ast three years, attested by the notary public, 
- evidence of the payment of an administrative fee for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities. 
(2) A list of documents and evidence required for the issue of a license to carry out an energy activity 
is enclosed as Appendix I to this Re gulation and an integral part hereof. 
Article 10 
(1) An application for license to carry out an energy  activity by the legal or natural person must be 
accompanied by original or certified copies of certi ficates issued by relevant bodies evidencing the 
fulfilment of the conditions for ca rrying out an energy activity.  
(2) All evidence from Article 9, Point 1, Items 1, 4 an d 5 must be no older than 60 days on the receipt 
date of the application.  
(3) If the legal or natural person submits several app lications for carrying out energy activities and if 
the applications are received within 30 days of the receipt date of the first application, the Agency 
may accept subsequent applications with copies of required evidence, provided that the energy 
undertaking accompanies all subsequent applications w ith a written statement st ating that the original 
or certified copies of the evidence are en closed with the first application.  
Issue of license to carry out an energy activity 
Article 11 
(1) Based on the facts established in the procedure, the Agency shall issue th e license to carry out an 
energy activity or a decision on denial of the license. 
(2) Along with the mandatory elements, the decisi on on issuing the license to carry out an energy 
activity shall also contain the name of the en ergy activity and validity term of the license. WT/TPR/M/227/Add.1 
Page 106  
 
 (3) An appeal against the decision from Point 1 of th is Article on denial of the license to carry out an 
energy activity can be submitted to the Ministry. 
Article 12 
The Agency shall make the decision on issuing the li cense to carry out an ener gy activity within 30 
days from the date of submission to the Agency of the application accompanied by all required 
documentation, or within 60 from the date of submission to the Agency of the application 
accompanied by all required documentation, if it is necessary to perform data check and an inspection 
of facilities and/or equipment as well as road, rail  and water transportation vehicles, pursuant to 
Article 20 of this Regulation. 
Article 13 
On coming into effect of the decision of issuing the license to carry out an ener gy activity, the Agency 
shall issue the license to the Applicant on a DOED form (hereinafter:  License) enclosed as Appendix 
V to this Regulation and an integral part hereof. 
Article 14 
(1) The Applicant may withdraw an application for li cense to carry out an ener gy activity at any time 
during the procedure. 
(2) When the Applicant withdraws its applica tion, the Agency shall make a decision on the 
termination of the application process. 
(3) The Applicant shall withdraw the applica tion in a statement submitted to the Agency. 
(4) The Applicant withdrawing the application is  entitled to a refund of the license application 
processing fee. 
Article 15 
(1) An energy undertaking with th e license to carry out an energy ac tivity must continuously maintain 
the required level of technical, financial and pr ofessional qualifications, as well as other conditions 
based on which the license was issued. 
(2) The Agency is authorised to monitor and ch eck the conditions under Point 1 of this Article 
throughout the validity term of the license to carry out an energy activity. 
Renewal of license to carry out an energy activity 
Article 16 
(1) The energy undertaking whose li cense to carry out an energy activ ity has expired, must submit to 
the Agency an application for renewal of the license to carry out an energy activity within 3 months 
before the expiry date. 
(2) The application for renewal of the license from Po int 1 of this Article must be submitted to the 
Agency on a ZPDOED form enclosed as Appendix IV to this Regulation and an  integral part hereof. 
(3) The energy undertaking must accompany the app lication for the renewal of  the license from Point 
1 of this Article with evidence from Article 9, Point 1, Items 1, 5 and 6 of this Regulation, and submit  WT/TPR/M/227/Add.1 
 Page 107 
 
 
 a written statement by a responsible person with th e description of all changes that have occurred 
since the issue date of the license, which may affect the technical, professional and financial qualifications of the energy undertaking, or where no such changes occurred, submit a written 
statement by a responsible person attes ting that no such changes occurred. 
(4) The energy undertaking must accompany the st atement from Point 3 of this Article with the 
documentation evidencing any changes in techni cal, professional and financial qualifications. 
Article 17 
The Agency shall renew the license to  carry out an energy activity for such a term as stipulated by the 
Regulation on the Validity Term of the license to  carry out an energy activity, based on the 
information on carrying out an energy activity by the energy undertaking during the license validity 
term which has expired, and according to the in formation gathered by the Agency through the 
monitoring and inspection of conditions from Article 15 Point 1 of this Regulation. 
Article 18 
The energy undertaking whose license to carry out an energy activity has expired, and who has not 
submitted an application for renewal of the license pu rsuant to Article 16 Poin t 1 of this Regulation, 
must submit an application for license to carry out an  energy activity in the same manner as stipulated 
for first-time applications. 
Transfer of license to carry out an energy activity 
Article 19 
(1) In the event of a dissociation or division of the energy undertaking as stipulated by specific 
regulations, the license to carry out an energy activ ity may be transferred to a single legal person who 
is deemed to be the general legal successor thereof,  provided that within 30 days from the registration 
date of the new legal person, the transferer and the transferee (in the event of a dissociation) or the 
transferee (in the event of a division), submit to the Agency an application for transfer of the license 
to carry out an energy activity. 
(2) In the event of death of the natural person, the license to carry out an energy activity may be 
transferred to its successor continuing its business an d carrying out an energy activity, provided that 
within 30 days from the date of a decision by the re levant county office, or the City of Zagreb, on the 
transfer of trade license and the continuation of trading, the successor subm its to the Agency an 
application for transfer of the licen se to carry out an energy activity. 
(3) The Agency will issue a decision on transfer of the license to carry out an energy activity, 
provided that in addition to the conditions from this  Article the legal person from Point 1 of this 
Article and the natural person from Point 2 of this  Article fulfil the conditions for carrying out an 
energy activity as stipulated in this Regulation. 
(4) The Applicant may file an appeal to the Minist ry against the decision from Point 3 of this Article. 
Article 20 
In the process of determining the facts evidencing the fulfilment of conditions stipulated in this 
Regulation for the issue, renewal and transfer of the license to carry out an energy activity, the 
Agency may carry out an investigation and request an explanation for all data, as well as carry out an 
inspection of all facilities and/or equipment a nd road, rail and water tr ansportation vehicles. WT/TPR/M/227/Add.1 
Page 108  
 
 Article 20 
In the process of determining the facts evidencing the fulfilment of conditions stipulated in this 
Regulation for the issue, renewal and transfer of the license to carry out an energy activity, the 
Agency may carry out an investigation and request an explanation for all data, as well as carry out an 
inspection of all facilities and/or equipment a nd road, rail and water tr ansportation vehicles. 
III EXPIRY OF THE LICENSE 
Article 21 
The license to carry out an energy  activity ceases to be valid on the expiry of the last day of the 
validity term from the day it was issued, on the date of coming into effect of the decision to remove 
the energy undertaking from the appropriate register , at the request of the energy undertaking and on 
the date of coming into effect of a decision by th e Agency on permanent withdrawal of the license. 
Article 22 
(1) The Agency may temporarily withdraw the licen se to carry out an energy activity if the energy 
undertaking ceases to fulfil technical, professional a nd financial qualifications  or other conditions 
based on which the license to carry out an ener gy activity was issued, or unless the energy 
undertaking, which determines its pricing based on the tariff systems application, determines the 
pricing in the prescribed manner. 
(2) If the Agency establishes the existence of defici encies from Point 1 of this Article, it may issue the 
decision to withdraw the license to carry out an en ergy activity and set the deadline for correcting the 
deficiencies. 
(3) The Applicant may file an appeal to the Minist ry against the decision from Point 2 of this Article. 
Article 23 
(1) The Agency may permanently w ithdraw the license to carry out an  energy activity if the energy 
undertaking fails to comply with the decision by the Agency from Article 22 of this Regulation or to correct any deficiencies within the deadline stipulated in the d ecision by a relevant inspector. 
(2) The Applicant may file an appeal to the Minist ry against the decision from Point 1 of this Article. 
IV REGISTER OF LICENSES 
Form, content and manner of keeping the Register 
Article 24 
(1) The Register of Licenses shall be kept by the Agency. (2) The Register of Licenses consists of registration files for each specific case. (3) A registration file contains: 
– an application for license to carry out an energy activity, 
– documents enclosed with the application fo r license to carry out an energy activity, 
– a decision by the Agency on issuing the license to carry out an energy activity,  WT/TPR/M/227/Add.1 
 Page 109 
 
 
 – a copy of a DOED form of the issued license, 
– a decision by the Agency on withdrawal of the license to carry out an energy activity, if any, 
- a decision by the Agency on expiry of the license due to termination of the energy undertaking, or 
decision by the Agency on expiry of the license at the request of the energy undertaking, if any, 
– decisions by a relevant second-instance body b ased on the appeal to the decision, if any. 
(4) When renewing the license to carry out an ener gy activity, in addition to the documentation from 
Point 3 of this Article, the registration file shall contain: 
- an application for renewal of the li cense to carry out an energy activity, 
- a statement by the energy undertaking from Article 16 Point 3 of this Regulation, - a decision by the Agency renewing or denying the application for renewal of the license to carry out 
an energy activity. 
(5) When transferring the license to carry out an en ergy activity, in additi on to the documentation 
from Point 3 of this Article, the registration file shall contain: 
- an application for transfer of the license to carry out an energy activity, 
- a decision by the Agency renewing or denying the a pplication for transfer of the license to carry out 
an energy activity. 
Article 25 
(1) Summary of the Register of Licenses (hereina fter: Summary) is kept in electronic format. 
(2) The Summary shall have the following elements: – license registration number, 
– date of entry in the Register of Licenses, 
– full name of the energy undertaking, 
– seat and address of the energy undertaking, – company number of energy undertaking, – name of the energy activity, 
– validity term of the license, 
– date of issue of the decision on license withdrawal, 
– date of issue of the decision permitting the ener gy activity according to Article 16 Point 2 of the 
Energy Act. 
(3) If the information registered in the Summary ch anges during the license validity term, the energy 
undertaking licensed for an energy activity shall info rm the Agency thereon in written form within 30 
days from the date of change. 
License registration number 
Article 26 
(1) A license registration number is the number assigne d to each license at its entry into the register. 
(2) The license registration number is us ed to mark each registration file. 
(3) Once assigned, the registration number shall not  be changed or assigned to another license on 
termination of the license validity term. WT/TPR/M/227/Add.1 
Page 110  
 
 Article 27 
(1) The license registration number consists of: – a company number of the energy undertaki ng entered into the appropriate register, 
– a four-digit reference number determined by the Agency in the order of opening of the registration 
file starting with 0001, 
– a number of year registered starting with 02. 
(2) The company number and reference number from Po int 1 or this Article are divided by a hyphen 
(-), and the reference number and the number of year registered from Point 1 of this Article are divided by a slash (/). 
Article 28 
(1) For renewed licenses, the existing registrati on number from Article 27 of this Regulation is 
followed by a hyphen (-),  the reference number indi cating the renewal of th e license, starting with 
Roman numeral I followed by a slash (/), and the last two digits of the number of year registered. 
(2) Licenses from Point 1 of this Article are regist ered in the Summary in the place of the license 
which has been renewed. 
Article 29 
Licenses transferred from one energy undertaking to  another are registered in the Summary under the 
same registration number. 
Article 30 
If one energy undertaking was issued multiple licenses to carry out the same energy activity due to the 
license expiry, only the last issued license  shall be registered in the Summary. 
Public nature of the Register 
Article 31 
(1) The Summary is open to the public. (2) The Summary is available on the Agency's website , and queries can also be made on the Agency's 
premises. 
V TRANSITIONAL AND FINAL PROVISIONS 
Article 32 
Exceptionally from Article 16 of this Regulation, energy undertakings with a license which expired 
prior to the date of coming into effect hereof, a nd provided that such undert akings have continually 
maintained the required level of technical, prof essional and financial qualifications based on which 
the expired license was issued, must submit an appli cation for renewal of the license to the Agency in 
accordance with this Regulation within 30 days from the date of coming into effect hereof.  WT/TPR/M/227/Add.1 
 Page 111 
 
 
 Article 33 
Exceptionally from Article 19 of this Regulation, an  energy undertaking with a license for generation 
of energy from sustainable sources (wind power pl ants) and a new legal pers on may, within 60 days 
from the date of coming into effect of this Regulati on submit to the Agency an application for transfer 
of the license to carry out an energy activity to the new legal person. 
Article 34 
All applications for the license to carry out an en ergy activity received by the date of coming into 
effect of this Regulation are subject to the Regulation on the Conditions for Carrying out an Energy Activity (OG 6/03 and 94/05). 
Article 35 
The Regulation on the Conditions for Carrying out an Energy Activity (OG 6/03 and 94/05) shall 
cease to be valid on the date of coming into effect of this Regulation. 
Article 36 
This Regulation shall come into effect on the eight h day after its publication in the »Official Gazette«. 
Class: 011-01/07-01/229 
Ref.nr.: 526-04-03-02/2-07-1 
Zagreb, 29th October, 2007 
Minister of Economy, Labour and Entrepreneurship 
Branko Vukeli ć 
APPENDIX I 
LIST OF DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR 
LICENSE BY ENERGY ACTIVITIES 
1. GENERATION OF ELECTRICITY  
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for issue of the license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant) 
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; 
b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; WT/TPR/M/227/Add.1 
Page 112  
 
 c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of generation facilities with the expl anation of the use of primary energy source and 
basic technical specificati ons for generation facility components,  such as: generators, switchyards 
(with single line diagrams), support systems, facilities,  etc.; a description of a demarcation point with 
the pertaining measurement equipment, and description of the electricity delivery point; 
f) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
d) For generation of electricity from sustainable sources (wind power plants), at least one employee 
with a university degree 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public 
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
2. TRANSMISSION OF ELECTRICITY 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant) 
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; 
b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant;  WT/TPR/M/227/Add.1 
 Page 113 
 
 
 e) A description of the transmission system with basic technical specifications for the electric power 
network and supporting facilities, such as: mains and transformer stations by voltage levels etc.; a 
description of demarcation points with other tran smission network operators; a description of the 
management system; f) Technical conditions and tariffs submitted by the transmission system operator in compliance with 
the Electricity System Network Rules and General Conditions for Electricity Supply relevant to the 
transmission network users; g) Custom agreements with network users; h) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other 
persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
3. DISTRIBUTION OF ELECTRICITY DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; WT/TPR/M/227/Add.1 
Page 114  
 
 e) A description of the transmission system with basic technical specifications for the electric power 
network and supporting facilities, such as: mains and transformer stations by  voltage levels, number 
of customers etc., a description of the management system; f) Technical conditions and tariffs submitted by the transmission system operator in compliance with 
the Electricity System Network Rules and Genera l Conditions for Electricity Supply relevant to 
transmission network users; 
g) Custom agreements with network users; h) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons affec ting professional qualifications of the Applicant. 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other 
persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
4. SUPPLY OF ELECTRICITY 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 
3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other ag reement for the use of commercial property signed 
with the owner of the commercial property; b) A list of IT and telecommuni cations equipment for carrying out an energy activity with the 
description of the calculation system; 
c) A list of commercial properties on the territory of the Republic of Croatia 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) Custom agreements with customers; f) Invoice forms for electricity  supplied to customers; 
g) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person.  WT/TPR/M/227/Add.1 
 Page 115 
 
 
 4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other 
persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
5. ELECTRICITY MARKET ORGANISATION DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other ag reement for the use of commercial property signed 
with the owner of the commercial property; b) A list of IT and telecommuni cations equipment for carrying out an energy activity with the 
description of the market par ticipants monitoring system; 
c) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
d) Custom agreements with market participants; e) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; WT/TPR/M/227/Add.1 
Page 116  
 
 c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other 
persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
6. PRODUCTION OF GAS DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the gas production system w ith basic technical specifications, including the 
description of the production system management centre, measurement system, gas quality parameters monitoring system and gas delivery quality monitoring system, accompanied with the product specification and gas safety data sheet; f) An emergency plan; 
g) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other  WT/TPR/M/227/Add.1 
 Page 117 
 
 
 persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
7. SUPPLY AND MARKETING OF NATURAL GAS FROM OWN PRODUCTION DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; 
b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the gas production system w ith basic technical specifications, including the 
description of the production system management centre, measurement system, gas quality parameters monitoring system and gas delivery quality monitoring system, accompanied with the product specification and gas safety data sheet; 
f) A list of mining concessions for the exploitation of mineral resources in the Republic of Croatia; 
g) An emergency plan; h) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, WT/TPR/M/227/Add.1 
Page 118  
 
 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
8. PROVISION OF GAS 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other ag reement for the use of commercial property signed 
with the owner of the commercial property; b) A list of IT and telecommuni cations equipment for carrying out an energy activity with the 
description of the calculation system; c) A list of commercial properties on the territory of the Republic of Croatia 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A custom agreement on gas provision; f) A description of the gas quality monitoring method; g) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other 
persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
9. STORAGE OF NATURAL GAS 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter:  Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register.  WT/TPR/M/227/Add.1 
 Page 119 
 
 
 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; 
c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of gas storage syst em with basic technical specifica tions, including the description of 
a management centre for operative management of the gas storage system and the entry/exit flow 
measurement system, and gas quality parameters; f) A list of system users with information on the stor ed quantities of natural gas for the past two years, 
and plan for the year in whic h the application is submitted; 
g) Custom agreements on gas storage; 
h) An emergency plan; i) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
10. TRANSPORTATION OF NATURAL GAS 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 
3. Evidence of technical qualifications a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; WT/TPR/M/227/Add.1 
Page 120  
 
 b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the transportation system with basic technical specifications, including the 
description of a dispatch centre for the manageme nt of the transportation system, measurement 
system, gas quality parameters monitoring system and gas delivery quality monitoring system; 
f) A list of system users with information on the tran sported quantities of natural gas for the past two 
years, and reserved maximum daily loads for the year in which the application is submitted; 
g) Custom agreements on gas transportation; h) A custom agreement on connection to the gas transportation system; i) An emergency plan; 
j) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
11. DISTRIBUTION OF GAS 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity;  WT/TPR/M/227/Add.1 
 Page 121 
 
 
 b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the distribution system with  basic technical specifications, including the 
description of a dispatch centre for the management  of the distribution system, measurement system, 
gas quality parameters monitoring system, gas delivery quality monitoring system, and gas 
odorisation devices; 
f) Information on the number of customers and distri buted quantities of gas by user categories for the 
past two years, and plan for the year in which the application is submitted; g) A custom agreement on gas distribution; h) A custom agreement on connection to the gas transportation system; 
i) An emergency plan; 
j) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications: 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
12. MANAGEMENT OF THE LNG (LIQUIFIED NATURAL GAS) TERMINAL 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; WT/TPR/M/227/Add.1 
Page 122  
 
 b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the LNG (Liquefied Natural Ga s) terminal with basic technical specifications, 
including the description of the LNG terminal opera tional management centre and the entry/exit flow 
measurement system, and gas quality parameters; 
f) A list of system users with information on the use of terminal capacities for the past two years, and 
plan for the year in which the application is submitted; g) Custom agreements on the use of LNG terminal; h) An emergency plan; i) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other 
persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
13. SUPPLY OF GAS 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other ag reement for the use of commercial property signed 
with the owner of the commercial property; 
b) A list of IT and telecommuni cations equipment for carrying out an energy activity with the 
description of the calculation system; c) A list of commercial properties on the territory of the Republic of Croatia  WT/TPR/M/227/Add.1 
 Page 123 
 
 
 d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the gas quality monitoring method; f) A description of the method for informing the cu stomers on the features of use and measures for 
effective and safe use of gas; g) Conditions of the agreement on gas supply to privileged customers; 
h) A custom agreement on gas supply to tariff customers; 
i) A custom agreement on gas supply to privileged customers; j) Invoice forms for gas supplied to customers; k) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other 
persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
14. GENERATION OF THERMAL ENERGY DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) Basic technical and technological information fo r each production unit and total thermal system by 
location: a description of thermal generator or coge neration unit with technical specifications; a list of WT/TPR/M/227/Add.1 
Page 124  
 
 other equipment and devices at the production locati on (equipment for regulation and/or circulation of 
thermal media, measurement-regulation equipment, monitoring and control equipment, etc.) with 
technical specifications; a description of the pro duction technology process for each thermal system 
from the preparation of fuel to the delivery of thermal energy; a realised (or planned) annual 
production of thermal energy and fuel consumption; 
f) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
d) Evidence of professional qualifications for employees managing boiler plants; 
5. Evidence of financial qualifications a) A BON-1 form, or for the natural person an income and 
expense statement submitted to the ta x office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
15. DISTRIBUTION OF THERMAL ENERGY 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for distribution of thermal energy; b) A valid concession agreement for distribution of th ermal energy or a valid contract for distribution 
of thermal energy; c) Certificates of occupancy or other required cer tificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; 
d) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. e) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
f) Basic technical specifications for each thermal system distribution network, including specifications 
for other facilities and devices for distribution of thermal energy (equipmen t for regulation and/or 
circulation of thermal media, thermal stations, e quipment at calculation measurement points, etc.);  WT/TPR/M/227/Add.1 
 Page 125 
 
 
 g) Custom agreements with network users; 
h) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
16. SUPPLY OF THERMAL ENERGY 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 
3. Evidence of technical qualifications a) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
b) A description of thermal consumers (number and type of consumers at each calculation measurement point/ thermal station, size of heated  area and number of consumers for heating and hot 
water supply services at each calculation measurement point/ thermal station, etc.); 
c) A description of consumption measurement and calculation system; 
d) Invoice forms for thermal energy supply; e) Custom agreements with customers; f) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
g) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications WT/TPR/M/227/Add.1 
Page 126  
 
 a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
17. PRODUCTION OF BIOFUEL 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 
3. Evidence of technical qualifications a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; 
c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the biofuel production system with basic technical specifications, including the 
description of the biofuel quality parameter monitoring system accompanied by a product 
specification, a copy of analysis report and safety data sheet; f) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons affec ting professional qualifications of the Applicant. 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds;  WT/TPR/M/227/Add.1 
 Page 127 
 
 
 6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
18. PRODUCTION OF OIL DERIVATIVES 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of oil derivatives production system  with basic technical specifications, including the 
description of the oil derivatives quality paramete rs monitoring system accompanied by a product 
specification, copy of analysis report and safety data sheet; 
f) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities WT/TPR/M/227/Add.1 
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 19. TRANSPORTATION OF OIL VIA PIPELINES OR BY OTHER MEANS OF 
TRANSPORTATION NOT MENTIONED IN ITEM 21, POINT 1, ARTICLE 15 OF THE ENERGY ACT 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment, and rail or water transportation vehicles for carrying out an energy activity; 
b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on which th e facilities and/or equipment, and rail or water 
transportation vehicles may be used, operated or utilised for carrying out an energy activity; 
c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the transportation system with basic technical specifications, including the 
description of the oil quality and quantity paramete rs monitoring system, and/or a list of rail 
transportation vehicles with basic technical specificati ons and/or a list of wate r transportation vehicles 
with basic technical specifications; f) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities  WT/TPR/M/227/Add.1 
 Page 129 
 
 
 20. TRANSPORTATION OF OIL DERIVATIVES VIA PIPELINES OR BY OTHER MEANS 
OF TRANSPORTATION NOT MENTIONED IN ITEM 21, POINT 1, ARTICLE 15 OF THE ENERGY ACT 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment, and rail or water transportation vehicles for carrying out an energy activity; 
b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on which the facilities and/or equipment and rail or water 
transportation vehicles may be used, operated or utilised for carrying out an energy activity; 
c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the transportation system with basic technical specifications, including the 
description of the the oil derivatives quality and quan tity parameters monitoring system, and/or a list 
of rail transportation vehicles with basic technical specifications and/or a list of water transportation 
vehicles with basic technical specifications; f) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities WT/TPR/M/227/Add.1 
Page 130  
 
 21. TRANSPORTATION OF OIL, OIL DERIVATIVES AND BIOFUEL BY ROAD 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreement signed with the owner of the road 
transportation vehicle for carrying out an energy activity; 
b) A license for domestic or international public road transport; 
c) A list of road transportation vehicles accompanie d by a copy of license to carry out an energy 
activity for each road transportation vehicle; d) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. 
e) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
f) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
22. WHOLESALE TRADE OF OIL DERIVATIVES 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 
3. Evidence of technical qualifications  WT/TPR/M/227/Add.1 
 Page 131 
 
 
 a) Evidence of ownership, lease or any other ag reement for the use of commercial property signed 
with the owner of the commercial property; b) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
c) A description of the oil derivatives quality monitoring method; d) A three-year development and investment plan  for carrying out an energy activity, with an 
indication of the relevant energy products, stampe d and signed by a responsib le person of the legal 
person, or a three-year development and investment  plan for carrying out an energy activity stamped 
and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons affec ting professional qualifications of the Applicant. 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
23. STORAGE OF OIL AND OIL DERIVATIVES 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other agreem ent signed with the owner of the facilities and/or 
equipment for carrying out an energy activity; b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilised for carrying out an energy activity; c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated. d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the storage system with basi c technical specifications, including a description of 
the oil and oil derivatives quality and quantity pa rameters measurement and monitoring system; 
f) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. WT/TPR/M/227/Add.1 
Page 132  
 
 4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other 
persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
24. WHOLESALE TRADE OF LIQUIFIED PETROLEUM GAS DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 3. Evidence of technical qualifications 
a) Evidence of ownership, lease or any other ag reement for the use of commercial property signed 
with the owner of the commercial property; b) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
c) A description of the liquefied petroleum gas quality monitoring method; 
d) A three-year development and investment plan  for carrying out an energy activity, with an 
indication of the relevant energy products, stampe d and signed by a responsib le person of the legal 
person, or a three-year development and investment  plan for carrying out an energy activity stamped 
and signed by the natural person. 4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; 
c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds;  WT/TPR/M/227/Add.1 
 Page 133 
 
 
 6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
25. MARKETING, PROCUREMENT AND RE PRESENTATION IN THE ENERGY 
MARKET 
DOCUMENTATION AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENSE 
1. A completed ZDOED form (Application for th e issue of a license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)  2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register. 
3. Evidence of technical qualifications a) Evidence of ownership, lease or any other ag reement for the use of commercial property signed 
with the owner of the commercial property; b) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
c) A three-year development and investment plan  for carrying out an energy activity, with an 
indication of the relevant energy products, stampe d and signed by a responsib le person of the legal 
person, or a three-year development and investment  plan for carrying out an energy activity stamped 
and signed by the natural person. 
4. Evidence of professional qualifications 
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
d) At least one employee in possession of a university degree. 
5. Evidence of financial qualifications 
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person; c) A statement by the legal or natural person's commercial bank or another commercial bank on the 
reality of obtaining the required funds, if at the ti me of the application the Applicant does not dispose 
of the required funds; 
6. A statement by a responsible person certifying  that there were no criminal procedures against 
the economy against any members of the management board of the legal person or other persons accountable to them for the past five yea rs, attested by the notary public, or a statement 
by the natural person that there was no criminal procedure against it in the past three years, 
attested by the notary public, 
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities WT/TPR/M/227/Add.1 
Page 134  
 
 APPENDIX II  
Funds (cash in the account at the energy undertakin g's commercial bank) required for carrying out an 
energy activity, or statement by the energy unde rtaking's commercial bank or another commercial 
bank on the reality of obtaining the required funds: 
1. Generation of electricity:  HRK 50,000 
2. Transmission of electricity:  HRK 100,000 
3. Distribution of electricity:  HRK 300,000 4. Supply of electricity:  HRK 30,000 5. Electricity market organisation:  HRK 50,000 6. Production of gas:  HRK 50,000 
7. Supply and marketing of natural gas from own production: HRK 50,000 
8. Provision of gas: HRK 50,000 9. Storage of natural gas: HRK 50,000 10. Transportation of natural gas: HRK 100,000 11. Distribution of gas: HRK 50,000 
12. Managing of the LNG gas terminal:   HRK 50,000 
13. Supply of gas: HRK 30,000 14. Generation of thermal energy: HRK 15,000 15. Distribution of thermal energy: HRK 15,000 16. Supply of thermal energy: HRK 10,000 17. Production of biofuel: HRK 10,000 
18. Production of oil derivatives: HRK 300,000 
19. Transportation of oil via pipelines and by other means of transportation:   HRK 100,000 20. Transportation of oil derivatives via pipelines a nd by other means of transportation:  HRK 70,000 
21. Transportation of oil, oil derivatives and biofuel by road:  HRK 10,000 22. Wholesale trade of oil derivatives:  HRK 40,000 
23. Storage of oil and oil derivatives:  HRK 50,000 
24. Wholesale trade of Liquified Petroleum Gas (LPG):  HRK 30,000 25. Marketing, procurement and representati on in the energy market:   HRK 20,000  
  WT/TPR/M/227/Add.1 
 Page 135 
 
 
 APPENDIX III  
ZDOED FORM 
THE REPUBLIC OF CROATIA  
CROATIAN ENERGY REGULATORY AGENCY  
  APPLICATION FOR LICENSE TO CA RRY OUT AN ENER GY ACTIVITY 
APPLICANT GENERAL INFORMATION  
Legal person name 
Natural person name and 
surname   
Seat   
Address   
Company number   
Telephone   Fax   
E-mail   
Name   
Surname   
Address   Responsible person 
Position   
APPLICATION FOR LICENSE  
Pursuant to provisions of the Energy Act a nd Regulation on Licenses to Carry Out Energy 
Activities, I herewith apply for the license to carry out the following energy activity: 
_______________________________________________________________ 
(only one energy activity may be entered) 
Pursuant to provisions of the Regulation on Li censes to Carry Out Energy Activities, Appendix I, 
please find enclosed  (mark with a cross): 
1. evidence of registration for carrying out an energy activity 
2. evidence of technical qualifications  for carrying out an energy activity 
3. evidence of professional qualifications  for carrying out an energy activity 
4. evidence of financial qualifications  for carrying out an energy activity 
5. a statement of no criminal procedure on the Applicant for a criminal act against the economy 
pursuant to Article 9 Point 1 of the Regula tion on Licenses to Carry Out Energy Activities 
6. Evidence of the payment of an administrative f ee for the issue of the li cense, stipulated by the 
Decision on Fees for the Regulation of Energy Activities 
Documentation and supporting evidence from points 2, 3 and 4 must be signed and enclosed with this Application.  
 WT/TPR/M/227/Add.1 
Page 136  
 
 ______________________                             _________________________ 
Place and date                                                    Responsible person name and surname 
                                                                           _________________________ 
                                                                            Signature  WT/TPR/M/227/Add.1 
 Page 137 
 
 
 APPENDIX IV  
ZPDOED FORM 
THE REPUBLIC OF CROATIA  
CROATIAN ENERGY REGULATORY AGENCY  
APPLICATION FOR RENEWAL OF LICENSE TO CARRY OUT AN ENERGY ACTIVITY 
APPLICANT GENERAL INFORMATION  
Legal person name 
Natural person name and 
surname   
Seat   
Address   
Company number   
Telephone   Fax   
E-mail   
Name   
Surname   
Address   Responsible person 
Position   
APPLICATION FOR RENEWAL OF LICENSE  
Pursuant to provisions of the Energy Act and Re gulation on Licenses to Carry Out Energy Activities, 
I herewith apply for renewal of the license to  carry out the following energy activity: 
_______________________________________________________________ 
(only one energy activity may be entered) 
Pursuant to provisions of the Regulation on Licenses to Carry Out Energy Activities, Appendix I, please find enclosed  (mark with a cross): 
1. evidence of registration for carrying out an energy activity   
2. a written statement by a responsible person with the description of any changes occurring 
from the date of license issue, affecting technical, professional and financial 
qualifications, with evidence of changes regarding:    
  technical qualifications for carrying out an energy activity    
  professional qualifications for carrying out an energy activity   
  financial qualifications for carrying out an energy activity   
  or   
  a written statement by a responsible pe rson that no such changes occurred   
3. a statement of no criminal procedure on the Applicant for a criminal act against the 
economy pursuant to Article 9 Point 1 of the Regulation on Licenses to Carry Out Energy 
Activities   
4. evidence of the payment of an administrative fee for the issue of the license, stipulated by 
the Decision on Fees for the Regulation of Energy Activities   
Documentation and supporting evidence from bullet points 2, 3 and 4 must be signed and enclosed 
with this Application.  WT/TPR/M/227/Add.1 
Page 138  
 
 _______________________                                 _________________________ 
Place and date                                                         Responsible person name and surname                                                                                 _________________________                                                                                 Signature  WT/TPR/M/227/Add.1 
 Page 139 
 
 
 APPENDIX V 
DOED FORM 
 
 
MINISTRY OF ECONOMY, LABOUR AND ENTREPRENEURSHIP 
Pursuant to Article 17, paragraph 2 of the Ener gy Act (OG 68/01, 177/04, 76/07 and 152/08) the 
Minister of Economy, Labour and Entrepre neurship herewith passes the following 
REGULATION 
ON AMENDMENTS TO THE REGULATION ON LICENCES TO CARRY OUT ENERGY 
ACTIVITIES 
Article 1 
Within the Regulation on licences to carry out en ergy activities (OG 118/07), Article 2, paragraph 2 
shall be amended as follows: the word „and "sha ll be replaced by a comma and the words "and 
Biofuels for Transport Act" shall be adde d after the words "Oil Derivatives Market". 
Article 2 
Article 10, paragraph 1 shall be amended as follows :  the words „and the contracts from Article 5, 
paragraph 4 and Article 6, paragra ph 3 of this Regulation" shall be added at the end of the sentence. WT/TPR/M/227/Add.1 
Page 140  
 
 Article 3 
In Article 13 the text "On coming into effect of the decision of issuing the licence to carry out an 
energy activity" shall be replaced by the text:  "w hen the decision on issuing the licence to carry out 
an energy activity becomes final".  
Article 4 
In Article 16, paragraph 1, the word "at least" shall be omitted. 
After paragraph 1, paragraph 2 shall be  added which shall read as follows:  
"(2) The Agency shall not renew the licence to carry  out an energy activity to the energy undertaking 
if the application for renewal of the licence has been  submitted after expiry of the licence validity."  
In the former paragraph 2 which shall become paragr aph 3, a hyphen shall be inserted after the words 
"on the ZPDOED form" and the word "RENEWAL" shall be added. 
The former paragraph 3 shall become paragraph 4. In the former paragraph 4 which shall become paragr aph 5, the words "from Point 3" shall be replaced 
by the words "from paragraph 4". 
Article 5 
In Article 17 the words "and according to the in formation gathered by the Agency through the 
monitoring and inspection of conditions from Article 15 Point 1 of this Regulation" shall be omitted. 
Article 6 
Article 18 shall be omitted. 
Article 7 
Article 19, paragraph 1 shall be  amended to read as follows: 
"(1) In the event of division of the energy unde rtaking which is, pursuant to specific regulations, done 
by spin-off or split-up, the license to  carry out an energy activity may be transferred to a single legal 
person who is deemed to be the ge neral legal successor thereof, provided that within 30 days from the 
registration date of the new legal pe rson, i.e. registration date of the division, the transferer and the 
transferee i.e. the company which assumes the busin ess (in the event of spin-off) and the transferee 
i.e. the company which assumes the business (in the event of split-up), submits to the Agency an 
application for transfer of the licen se to carry out an energy activity." 
After paragraph 1, paragraph 2 shall be added which shall read as follows: 
"(2) If the energy undertaking merges or consolidat es with another legal person, the licence to carry 
out an energy activity may be transferred to company which assumes the business provided that 
within 30 days from the registration date of the merg er of the energy undertaking with another legal 
person i.e. from the registration date of the new le gal person in the case of consolidation, the company 
which assumes the business submits to the Agency an application for transfer of the license to carry 
out an energy activity."  WT/TPR/M/227/Add.1 
 Page 141 
 
 
 After the former paragraph 2 which shall become pa ragraph 3, paragraph 4 sh all be added which shall 
read as follows: 
"(4) Application for transfer of the licence from paragr aphs 1 and 2 of this Article is submitted to the 
Agency on the ZPDOED form –TRANSFER which can be found in Appendix IV a of this Regulation 
as its constituent part." 
The former paragraph 3 which shall become para graph 5 shall be amended to read as follows: 
"(5) The Agency will issue a decision on transfer  of the license to carry out an energy activity, 
provided that in addition to the conditions from pa ragraph 1 of this Artic le the legal person from 
paragraph 1 of this Article and th e natural person from paragraph 3 of this Article fulfil the conditions 
for carrying out an energy activity as stipulated in this Regulation." 
After the former paragraph 3 which shall become pa ragraph 5, paragraph 6 sh all be added which shall 
read as follows: 
"(6) The Agency will issue a decision on transfer  of the license to carry out an energy activity, 
provided that in addition to the conditions from pa ragraph 2 of this Artic le the legal person from 
paragraph 2 of this Article fulfils  the conditions for carrying out an energy activity as stipulated in 
Article 9, paragraph 1, subparagraphs  1, 5 and 6 of this Regulation" 
In the former paragraph 4 which shall become paragr aph 7, the words "from Point 3" shall be replaced 
by the words "from paragraphs 5 and 6". 
Article 8 After Article 19, Article 19.a shall be  added which shall read as follows: 
"Article 19.a 
The procedure of renewal and transfer of the licence  to carry out an energy activity is appropriately 
regulated by the provisions of Article 10, 11, 12, 13 and 14 of this Regulation" 
Article 9 Article 21 shall be amended to read as follows: "The license to carry out an energy activity terminat es with expiry of the last day of the period for 
which it has been issued, on the date of coming into  effect of the decision to remove the energy 
undertaking from the appropriate register, at the re quest of the energy undertaking and on the date 
when the decision of the Agency on termination of the licence validity becomes final and on the date 
when the decision of the Agency on permanen t withdrawal of the licence becomes final." 
Article 10 
In Article 24, paragraph 1, after the word "Agenc y", the words "in Croatian and English languages" 
shall be added. 
Paragraphs 4 and 5 shall be amended to read as follows: 
"(4) When renewing the license to carry out an energy activity, the registration file shall also contain: WT/TPR/M/227/Add.1 
Page 142  
 
 – an application for renewal of the licen se to carry out an energy activity, 
– the documents enclosed with the application for renewal of the license to carry out an energy 
activity, 
– a decision by the Agency renewing the licence or denying the application for renewal of the 
license to carry out an energy activity. 
(5) When transferring the license to carry out an en ergy activity, the registration file shall also 
contain: 
– an application for transfer of the license to carry out an energy activity, 
– the documents enclosed with th e application for transfer of th e license to carry out an energy 
activity, 
– a decision by the Agency transferring the license or denying the application for transfer of the 
license to carry out an energy activity." 
Article 11 
In Article 25, paragraph 2,  subparagraph 4 shall be am ended to read as follows: 
"– seat of the energy undertaking which is a lega l person or the address of the energy undertaking 
which is a natural person," 
In subparagraph 7, after the word "issued",  the words "or renewed" shall be added. 
Subparagraph 7 shall be amended to read as follows:  "the period for which the license is issued or 
renewed" 
In subparagraph 9, the words "Article 16 Point 2"  shall be replaced by the words "Article 18, 
paragraph 2." 
Article 12 
After Article 30, Article 30.a sha ll be added which reads as follows: 
"Article 30 a 
Apart from the license which terminates on the date when the decision of the Agency on permanent 
withdrawal of the licence becomes final, the licen se terminating due to the reasons stipulated in 
Article 21 of this Regulation sha ll be deleted from the Summary." 
Article 13 
In Appendix I, after item 4, item 4.a shal l be added which shall read as follows: 
"4.a TRADE OF ELECTRICITY  
DOCUMENTS AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENCE  
1. A completed ZDOED form (Application for issue of the license to carry out an energy 
activity), signed by the legal or natural person (hereinafter: Applicant)   WT/TPR/M/227/Add.1 
 Page 143 
 
 
 2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register.  
3. Evidence of technical qualifications  
a) Evidence of ownership or right to use the business premises based on the contract on lease or any 
other contract concluded with th e owner of the business premises; 
b) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
c) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications  
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
d) At least one employee of higher education. 
5. Evidence of financial qualifications  
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person. 
6. A statement by a responsible person certifying that no member of the management board of 
the legal person or any other person accountable  to them has been convicted of economic crime 
by a final court decision for the past five years,  attested by the notary public, or a statement by 
the natural person that they have not been convic ted of economic crime by a final court decision 
for the past three years, att ested by the notary public  
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities."  
In item 7, sub-item 3.f shall be amended to read as follows: 
"f) A list of concessions for the exploitation of minera l resources in the Republic of Croatia in the part 
of the gas exploitation;". 
After item 13, the items 13.a, 13.b, 13.c and 13. d shall be added which shall read as follows: WT/TPR/M/227/Add.1 
Page 144  
 
 "13.a AGENCY SERVICES IN THE GAS MARKET  
DOCUMENTS AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENCE  
1. A completed ZDOED form (Application for issue of the license to carry out an energy 
activity), signed by the legal or natural person (hereinafter:  Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register.  
3. Evidence of technical qualifications  
a) Evidence of ownership or right to use the business premises based on the contract on lease or any 
other contract concluded with th e owner of the business premises; 
b) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
c) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications  
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
d) At least one employee of higher education. 5. Evidence of financial qualifications  
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person. 
6. A statement by a responsible person certifying that no member of the management board of 
the legal person or any other person accountable  to them has been convicted of economic crime 
by a final court decision for the past five years,  attested by the notary public, or a statement by 
the natural person that they have not been convic ted of economic crime by a final court decision 
for the past three years, att ested by the notary public,  
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities."   WT/TPR/M/227/Add.1 
 Page 145 
 
 
 13.b REPRESENTATION SERVICES IN THE GAS MARKET  
DOCUMENTS AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENCE 
1. A completed ZDOED form (Application for issue of the license to carry out an energy 
activity), signed by the legal or natural person (hereinafter:  Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register.  
3. Evidence of technical qualifications  
a) Evidence of ownership or right to use the business premises based on the contract on lease or any 
other contract concluded with th e owner of the business premises; 
b) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
c) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications  
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
d) At least one employee of higher education. 5. Evidence of financial qualifications  
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person. 
6. A statement by a responsible person certifying that no member of the management board of 
the legal person or any other person accountable  to them has been convicted of economic crime 
by a final court decision for the past five years,  attested by the notary public, or a statement by 
the natural person that they have not been convic ted of economic crime by a final court decision 
for the past three years, att ested by the notary public,  
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities."  WT/TPR/M/227/Add.1 
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 13. c GAS TRADE  
DOCUMENTS AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENCE 
1. A completed ZDOED form (Application for issue of the license to carry out an energy 
activity), signed by the legal or natural person (hereinafter:  Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register.  
3. Evidence of technical qualifications  
a) Evidence of ownership or right to use the business premises based on the contract on lease or any 
other contract concluded with th e owner of the business premises; 
b) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
c) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications  
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
d) At least one employee of higher education. 5. Evidence of financial qualifications  
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person. 
6. A statement by a responsible person certifying that no member of the management board of 
the legal person or any other person accountable  to them has been convicted of economic crime 
by a final court decision for the past five years,  attested by the notary public, or a statement by 
the natural person that they have not been convic ted of economic crime by a final court decision 
for the past three years, att ested by the notary public,  
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities."   WT/TPR/M/227/Add.1 
 Page 147 
 
 
 13.d GAS MARKET ORGANISATION  
DOCUMENTS AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENCE 
1. A completed ZDOED form (Application for issue of the license to carry out an energy 
activity), signed by the legal or natural person (hereinafter:  Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register.  
3. Evidence of technical qualifications  
a) Evidence of ownership or right to use the business premises based on the contract on lease or any 
other contract concluded with th e owner of the business premises; 
b) A list of IT and telecommuni cations equipment for carrying out an energy activity with the 
description of the market par ticipants monitoring system; 
c) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
d) Custom agreements with market participants; e) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications  
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications  
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person. 
6. A statement by a responsible person certifying that no member of the management board of 
the legal person or any other person accountable  to them has been convicted of economic crime 
by a final court decision for the past five years,  attested by the notary public, or a statement by 
the natural person that they have not been convic ted of economic crime by a final court decision 
for the past three years, att ested by the notary public,  
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities."  WT/TPR/M/227/Add.1 
Page 148  
 
 In item 14, sub-item 4.d shall be amended to read as follows: 
"d) Evidence of professional qualifications of  the employees managing the facilities for thermal 
energy production and/or cogeneration units.«. 
In item 15, sub-item 3.b shall be omitted. In item 16, sub-item 3.a shall be amended to read as follows: 
"a) Evidence of ownership or right to use the busin ess premises based on the contract on lease or any 
other contract concluded with the owner of the business premises;". 
In item 17, sub-item 3.e, the word "quality " shall be replaced by the word "quality". 
After item 17, items 17.a and 17.b shall be added which shall read as follows: 
"17.a WHOLESALE TRADE OF BIOFUELS  
DOCUMENTS AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENCE 
1. A completed ZDOED form (Application for issue of the license to carry out an energy 
activity), signed by the legal or natural person (hereinafter:  Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register.  
3. Evidence of technical qualifications  
a) Evidence of ownership or right to use the business premises based on the contract on lease or any 
other contract concluded with th e owner of the business premises; 
b) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
c) A description of the biofuels quality monitoring method; 
d) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications  
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; 
c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications  
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years;  WT/TPR/M/227/Add.1 
 Page 149 
 
 
 b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person. 
6. A statement by a responsible person certifying that no member of the management board of 
the legal person or any other person accountable  to them has been convicted of economic crime 
by a final court decision for the past five years,  attested by the notary public, or a statement by 
the natural person that they have not been convic ted of economic crime by a final court decision 
for the past three years, att ested by the notary public,  
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities."  
17.b STORAGE OF BIOFUELS  
DOCUMENTS AND EVIDENCE IN SUPPORT OF APPLICATION FOR LICENCE 
1. A completed ZDOED form (Application for issue of the license to carry out an energy 
activity), signed by the legal or natural person (hereinafter:  Applicant)  
2. An excerpt from the appropriate register c ertifying that the Applicant is registered for 
carrying out an energy activity, if the Agency is  unable to determine that to be the case by 
querying the appropriate public register.  
3. Evidence of technical qualifications  
a) Evidence of ownership or right to use the business premises based on the contract on lease or any 
other contract concluded with th e owner of the business premises; 
b) Certificates of occupancy or other required certificates pursuant to Law on Physical Planning and 
Construction and specific regulations based on whic h the facilities and/or equipment may be used, 
operated or utilized for carrying out an energy activity; 
c) A statement by a responsible person that no deci sion was issued by the relevant inspector ordering 
the elimination of deficiencies, or where such a decision was issued, evid ence that the specified 
deficiencies have been eliminated; 
d) Valid contracts with other legal persons aff ecting technical qualifications of the Applicant; 
e) A description of the storage system with basi c technical specifications, including a description of 
the biofuels quality and quantity paramete rs measurement and monitoring system;  
f) A three-year development and investment plan for carrying out an energy activity, stamped and 
signed by a responsible person of the legal person, or a three-year development and investment plan 
for carrying out an energy activity stamped and signed by the natural person. 
4. Evidence of professional qualifications  
a) An organisation chart of the Applicant or a part thereof relevant to the energy activity; 
b) A list of employees in the energy activity, with th e indication of the level of  education, job title and 
job description according to the systematisation of  jobs and positions, stamped and signed by a 
responsible person of the legal person or signed and stamped by the natural person; WT/TPR/M/227/Add.1 
Page 150  
 
 c) Valid contracts with other legal persons aff ecting professional qualifications of the Applicant; 
5. Evidence of financial qualifications  
a) A BON-1 form, or for the natural person an in come and expense statement submitted to the tax 
office for the past two years; 
b) A BON-2 form, or the statement by a commercial  bank on the solvency of the legal or natural 
person. 
6. A statement by a responsible person certifying that no member of the management board of 
the legal person or any other person accountable  to them has been convicted of economic crime 
by a final court decision for the past five years,  attested by the notary public, or a statement by 
the natural person that they have not been convic ted of economic crime by a final court decision 
for the past three years, att ested by the notary public,  
7. Evidence of the payment of an administrative fe e for the issue of the license, stipulated by the 
Decision on Fees for the Regulation of Energy Activities."  
In item 18, sub-item 3.e, the word: »quality« shall be replaced by the word: »quality«. 
In item 19, sub-item 3.e shall be amended to read as follows: 
"e) A description of the transportation system and/or  a list of rail transportation vehicles and/or a list 
of water transportation vehicles with basic technical specifications, including the description of the oil and/or oil derivatives quality and quantity para meters measurement and monitoring system". 
In item 20, sub-item 3.e shall be amended to read as follows: "e) A description of the transportation system and/or  a list of rail transportation vehicles and/or a list 
of water transportation vehicles with basic technical specifications, including the description of the oil 
and/or oil derivatives quality and quantity para meters measurement and monitoring system". 
In item 22, sub-item 3.c, the word:  "quality"  shall be replaced by the word:  "quality". 
In item 23, sub-item 3.e, the word:  "quality"  shall be replaced by the word:  "quality". 
In item 24, sub-item 3.c, the word:  "quality"  shall be replaced by the word:  "quality". 
In item 25, after sub-item 3.c, sub-item 3.d sh all be inserted which shall read as follows: 
"d) Written statement, stamped and signed by a r esponsible natural person of  the legal person which 
specifies the following: to which type of energy the performance of the energy activity refers, whether 
the scope of the said energy activity will encompass th e trade, agency and repr esentation in the energy 
market or only one or two of the said activities and a short description of the manner of performance of the activity specifying the energy market where the energy activity is intended to be performed." 
Sub-item 5.c shall be deleted from all items. 
Article 14 
In Appendix II, the words:  "or statement by th e energy undertaking's commercial bank or another 
commercial bank on the reality of obtaini ng the required funds" shall be deleted.  WT/TPR/M/227/Add.1 
 Page 151 
 
 
 After item 4, item 4.a shall be in serted which shall read as follows: 
"4.a Trade of electricity: HRK 20,000.00« In item 5, the words:  "HRK 50,000.00" shall be replaced by the words:  "HRK 30,000.00". 
After item 13, the items 13.a, 13.b, 13.c and 13.d shall be inserted which shall read as follows: 
"13.a agency services in the gas market:  HRK 20,000.00 
13.b representation in the gas market: HRK 20,000.00  
13.c trade of gas:  HRK 20,000.00 13.d organisation of gas market: HRK 30,000.00 « After item 17, the items 17.a and 17.b shall be inserted which shall read as follows: 
"17.a wholesale trade of biofuels:  HRK 20,000.00 
17.b storage of biofuels: HRK 30,000.00« 
Article 15 
In Appendix IV, after the words:  "ZPDOED FO RM" a hyphen shall be inserted and the word 
"RENEWAL" shall be added. 
Article 16 
After Appendix IV, Appendix IV a shall be inserted which shall read as follows: 
"APPENDIX IV a 
ZPDOED FORM – TRANSFER 
THE REPUBLIC OF CROATIA 
CROATIAN ENERGY REGULATORY AGENCY 
APPLICATION FOR TRANSFER OF LICENSE TO CARRY OUT AN ENERGY ACTIVITY 
APPLICANT GENERAL INFORMATION  
Name of the legal person to which the 
license is transferred   
Seat  
Address  
Company number  
Telephone   Fax  
E-mail     
Responsible person of the legal person to 
which the license is transferred Name    
 Surname    WT/TPR/M/227/Add.1 
Page 152  
 
  Address    
 Position    
Legal basis for license transfer (circle)  
 1. company spin-off  
a) with acquisition 
b) with establishment 
2. company split-up  
a) with acquisition 
b) with establishment 
3. merger of companies  
4. consolidation of companies  
Name of the legal person from which the 
license is transferred   
Seat  
Address  
Company number  
Telephone  Fax  
E-mail  
Responsible person of the legal person from 
which the license is transferred Name    
 Surname    
 Address    
 Position    
APPLICATION FOR TRANSFER OF LICENSE 
Pursuant to provisions of the Energy Ac t and Regulation on Licenses to Carry Out Energy Activities, herewith an application 
is submitted for transfer of the license to  carry out the following energy activity: 
_______________________________________________________________ 
(only one energy activity may be entered) 
Pursuant to provisions of the Regulation on Licenses to Carr y Out Energy Activities, please find enclosed (mark with a 
cross): 
1 Evidence of completed procedure of spin-off / split-up / merger / consolidation  
2 Evidence of registration for carrying out an energy activity  
3 Evidence of technical qualifications for carrying out an energy activity  
4 Evidence of professional qualifications for carrying out an energy activity  
5 Evidence of financial qualifications for carrying out an energy activity  
6 A statement of the responsible person of  the legal person to which the license 
is transferred certifying that they have  not been convicted of economic crime 
pursuant to Article 9, paragraph 1 of the Regulation on Licenses to Carry Out 
Energy Activities  
7 Evidence of the payment of an administra tive fee for the transfer of the license, 
stipulated by the Decision on Fees fo r the Regulation of Energy Activities  
Documentation and supporting evidence from points 3, 4 and 5 must be signed and enclosed with this Request.  
 
__________________  WT/TPR/M/227/Add.1 
 Page 153 
 
 
 Place and date Name and surname of the responsible person of the legal person to which the license is 
transferred 
____________________ Signature Name and surname of the responsible person of the legal person from which th e license is transferred 
* 
____________________ Signature 
Note:  
*Signed by responsible person of the legal person from which the license is transferred only in case of 
company spin-off 
Article 17 
In Appendix V, in the DOED form, the words:  " seat and address" shall be replaced by the words:  
"seat or address". 
Article 18 
This Regulation shall take effect from the eight da y after being published in the "Official Gazette of 
the Republic of Croatia". 
Class: 011-01/09-01/186 Reg. No.: 526-04-03/1-09-1 Zagreb, 2 September 2009 
Deputy Prime Minister of the Government of 
the Republic of Croatia and the Minister of 
Economy, Labour and Entrepreneurship 
Damir Polan čec, BSc (Eng)  
Customs proceedings
 
Approval for the performance of duties of an authorised customs forwarding agent 
Under the provisions of Articles 5 and 76 of the Customs Act (OG 78/99 - 45/09), a customs 
declaration may be lodged by any person who may present to the customs office the goods and all the 
documents required for the application of the rules governing the requested customs procedure, so that 
the declarant may be a person who lodges a customs declaration in their own name and on their own 
behalf, or a person who, for the purpose of lodging the declaration, has been appointed a 
representative by the person whose right s and duties are being dealt with.  
According to Article 5 paragraph (6) of the Custom s Act, a person lodging the customs declaration as 
the representative has to fulfil the conditions for carrying out the activities of a customs agent, i.e. WT/TPR/M/227/Add.1 
Page 154  
 
 they have to be given approval for the performan ce of duties of an authorised customs forwarding 
agent.  
This condition is also specified in Article 2 paragraph 3 of the Act on the conditions for the 
performance of duties of representation in a custom s procedure (OG 92/01).  According to Article 2 
paragraph 4 of the mentioned Act, if the declarati on is being lodged by a trading company or a sole 
proprietor in their own name and on their own behalf , then such a person does not have to have an 
approval (nor does has to apply for issuing of one ) for the performance of duties of an authorised 
customs forwarding agent.  However, they have to have an employee who has an approval for the 
performance of duties of an authorized customs agent (which generally means passing a specific 
professional exam).  
It follows from the abovementioned that those trader s who clear goods only in their own name and on 
their own behalf do not have an obligation of proc uring an approval for the performance of duties of 
an authorised customs forwarding agent, but they on ly have to have at their disposal a person who 
fulfils the conditions for performing the duties of an  authorized customs agent, and procure for that 
person an appropriate approval for the performance of such duties.  
Article 2 of the Act on the conditions for the performance of duties of representation in a customs 
procedure assigns the performance of duties of an i ndirect representative in the process of clearance of 
goods to authorised customs forwarding agents, as en trepreneurs specialised for the provision of those 
professional activities and for assuming the risks rela ted to participation in the customs clearance 
procedure.  
According to Article 3 of the Act, duties of an au thorised customs forwarding agent can be performed 
by trading companies or sole proprietors, provided that they fulfil the following preconditions: 
- for a trading company, to have its seat in the Republic of Croatia, and to be registered at the 
Commercial Court for the performance of duties of  an authorised customs forwarding agent, 
and for a sole proprietor, to have permanent r esidence in the Republic of Croatia, and to be 
registered by the competent authority for the performance of duties of an authorised customs 
forwarding agent, 
- to have at least one permanent employee and that this employee has the status of an 
authorized customs agent (that is, a suffici ent number of such persons who enable a 
continued operation of the office at the border crossing, when the authorised forwarding 
agent has the approval for operation of a forwarding office at the border crossing), and 
- to have at their disposal the business premises and equipment necessary for effective 
performance of duties of an author ised customs forwarding agent. 
Fulfilment of the specified preconditions is ch ecked at the Customs Headquarters during the 
processing of individual applications for granting the approvals for the performance of duties an 
authorised customs forwarding agent. 
Applications for granting the approval for the pe rformance of duties of an authorised customs 
forwarding agent have to be submitted to the Cu stoms Headquarters with enclosed copies of the 
following documents: 
a) documents concerning the legal status of the applicant, 
b) documents on the person or pers ons who will perform duties of an authorized customs agent,   WT/TPR/M/227/Add.1 
 Page 155 
 
 
 c) documents showing that the applicants have at their disposal the business premises suitable 
for the performance of duties of an au thorised customs forwarding agent, 
d) documents showing that the applicants ha ve the equipment which enables the effective 
performance of duties of an authori sed customs forwarding agent, and 
e) an application for registration in the register of authorised customs forwarding agents. 
Applications and enclosed documents thus submitte d are processed at the Cu stoms Headquarters, and 
if they are considered satisfactory an adequate a pproval is granted, and they are registered in the 
register of customs forwarding agents in the form of  a four-digit register entry number, and the year of 
registration. 
Approval for the performance of duties of an authorized customs agent 
Authorized customs agents are persons employed with an authorised customs forwarding agent or 
another legal entity performing the customs approve d treatments of goods in their own name and on 
their own behalf, that is, performing activitie s in connection with the clearance of goods.  
In order to be allowed to perform these activiti es, it is necessary that they fulfil certain legal 
requirements, as well as that, ba sed on those requirements, they obt ain an approval for the performance 
of duties of an authorized customs agent.  This approval, according to Article 11 of the Act on the 
conditions for performance of duties of representation in a custom s procedure, will be issued to a 
person with at least secondary edu cation, who passed a professional exam for an authorized customs 
agent or a state exam for customs officers with a college or university degree, and who has not been 
sentenced in the previous two-year period for crimin al offences regarding the performance of duties of 
an authorized customs agent, or other offences regarding the non-payment or  evasion of payment of 
customs duties. 
Environmental - relevant sections of OG 110/07 and OG 7/97  
Below find the provision of the Article 39 of  the Environmental Protection Act (OG 110/07), 
regarding the persons authorised for prof essional environmental protection activities. 
Persons Authorised for Professional Environmental Protection Activities  
Article 39 1) A legal person authorised for performing professional environmental protection activities 
(hereinafter referred to as: authorised person), unde r the requirements prescribed by this Act and the 
ordinance referred to in paragraph 7 of this  Article may perform activities related to:  
- developing studies on the significant impact of plans or programmes on the 
environment (hereinafter referred to as: strategic impact study),  
- developing environmental impact studies including the nature impact assessment 
study for the planned project, 
- developing technical and technological concep tual designs for installations in relation 
to integrated environmental protection requirements,  
- developing environmental protection programmes,  
- developing environmental status reports, 
- developing safety reports, 
- developing environmental protection studi es for projects which are not subject to 
environmental impact assessment, WT/TPR/M/227/Add.1 
Page 156  
 
 -  developing and auditing special studies, budget calculations and projections for the 
needs of environmental components, 
-  assessment of environmental damage, 
-  monitoring in the field of environmental protection, 
- performing professional activities for the needs of the Environmental Pollution 
Registry.  
2) The authorised person for performing the activiti es referred to in paragr aph 1 of this Article 
must fulfil the requirements in accordance with this Act and the regulation passed on the basis thereof. 
3) The authorised person may commence with the performance of activities referred to in 
paragraph 1 of this Article after obtaining the appr oval of the Ministry for performing the activities in 
question. 
4) The authorised person which developed or  participated in the development of the 
environmental impact study shall not perform envir onmental monitoring activities determined in the 
study in question. 
5) The Ministry shall keep a register on the issued  approvals referred to in paragraph 3 of this 
Article. 
6) Once a year, in the first quarter of the current year for the previous one year period, the 
Ministry shall publish in the Official Gazette a list of issued approvals referre d to in paragraph 3 of 
this Article. 
7) Requirements which the authorised person must fulfil for the performance of activities 
referred to in paragraph 1 of this Article, the c ontent of the application for issuing approval, the 
method of issuing, the period of validity, and the conditions and method of withdrawing approval 
referred to in paragraph 3 of this Article, the conten t and method of keeping the register referred to in 
paragraph 5 of this Article and ot her related issues shall be prescribed  in detail by the Minister by 
ordinance, subject to the approval of the minister competent for nature protection. 
GOVERNMENT OF THE REPUBLIC OF CROATIA 
Pursuant to Article 9, paragraph 3 of the Envi ronmental Protection Act (OG 82/94), the Government 
of the Republic of Croatia at its session on 17 January 1997 passed the  
REGULATION 
ON REQUIREMENTS FOR GRANTING APPROVAL FOR PROFESSIONAL 
ENVIRONMENTAL PROTECTION ACTIVITIES 
Article 1 
This Regulation prescribes the requirements that a le gal person has to fulfil in order to perform 
professional environmental protection activities.  
Article 2 
According to the law, professional environmental protection activities are:  
1. tasks related to environmental state monitoring,  WT/TPR/M/227/Add.1 
 Page 157 
 
 
 2. tasks related to the elaboration of expe rt environmental protection support and studies; 
3. tasks related to expert preparation and el aboration of environmental impact studies;  
4. tasks related to professional training with a view of acquiring knowledge and specialising in 
environmental protection; 
5. tasks related to air quality and air emissions monitoring. 
Article 3 
To be granted approval for professional environmen tal protection activities, a legal person shall be 
registered for these activities and it shall fulfil the requirements prescribed by this Regulation.  
Within the meaning of paragraph 1 of this Article , a sufficient number and level of competence of the 
employees, suitable business premises and technical equipment are especially considered as 
requirements.   
Article 4 
For the performance of activities related to environm ental state monitoring, a legal person shall have: 
1. at least three employees with a university degree and a minimum of five years of experience in the 
field with different specialisations for performing th e following activities:  measuring emissions in the 
environment, measuring imissions in the envir onment, monitoring natural and other phenomena, 
which are the result of environmental pollution (biological, meteorological, hydrological, erosion, seismological, radiological, geophysical and other phenomena),  
2. business premises in ownership or on lease enabling a legal person to perform the majority of 
measuring procedures, testing and establishing results, except for those that have to be performed in 
the open by nature.  
3. technical equipment with certified measuri ng instruments and other equipment ensuring the 
reliability of data on the environmental state and impact on the environment.  
Article 5 
A legal person which is granted approval for performing activities re lated to environmental state 
monitoring shall carry out the majority of the prof essional activities in its laboratory and with its own 
permanent employees.  
A Legal person referred to in paragr aph 1 of this Article may perform only the measuring, testing and 
establishing of results for which it has technical  equipment and employees qualified for these 
activities. 
Article 6 
To perform activities related to the elaboration of expert environmental protection support and studies 
and to perform activities re lated to expert preparation and el aboration of environmental impact 
studies, a legal person shall fulfil the requirements prescribed in Article 4 of this Regulation.  
Notwithstanding the provision of paragraph 1 of this  Article, the legal person who does not fulfil the 
requirements referred to in Article 4, paragraph 1, items 2 and 3 of this Regulation shall be granted WT/TPR/M/227/Add.1 
Page 158  
 
 approval for performing activities related to the el aboration of environmen tal protection support and 
activities related to expert prepar ation and elaboration of environm ental impact studies if it has 
concluded with a legal person authorised to pe rform expert activities of environmental state 
monitoring or any other authorised legal person a cont ract stating that the authorised legal person shall 
perform the activities of environmental state monitoring for its needs. 
Article 7 
Professional training with a view of acquiring knowle dge and specialising in environmental protection 
implementation may be performed by a legal pers on on the basis of a professional training and 
specialisation programme (hereinafter referred to as: programme). 
The programme includes:  
1. plan, objectives and tasks of the programme, 
2. basic forms and method for implementing the programme,  
3. the necessary number of lecturers and other expe rts who can ensure the level of professional 
work, 
4. suitable business premises in ownership or on  lease, equipment and other conditions for 
implementing the programme.  
The programme referred to in para graph 1 of this Article shall be  proposed by a legal person and 
approved by the Ministry of Education and Sports.   
Article 8 
A legal person fulfilling the requirements referred to in  Article 4 of this Regulation shall be granted 
approval for performing activities related to air quality  monitoring and emission into the air according 
to air protection legislation, under the condition that it has a minimum of three employees who 
perform activities related to measuring air imissions and emissions, measuring the physical state of 
the atmosphere and measuring and observing indirect air quality indicators and that it is appropriately technically equipped with certif ied measurement instruments.  
Article 9 
A legal person can be granted approval for perfo rming one or more professional environmental 
protection activities referred to in Article 2 of this Regulation.  
Article 10 
A decision granting or denying approval in case of  non-compliance with the requirements prescribed 
in this Regulation shall be issued for: 
- activities referred to in Article 2, paragraph 1, items 1, 2, 3 and 5 of this Regulation by the 
State Directorate for Environmental Protection, 
- activities referred to in Article 2, paragraph 1, item 4 of this Regulation by the State 
Directorate for Environmental Protection with prior approval of the Ministry of Education and Sports which determines whether the legal person meets the requirements of the approved 
programme referred to in Artic le 7 of this Regulation. 
No appeal shall be allowed against the decision refe rred to in paragraph 1 of this Article, although an 
administrative dispute may be instituted.   WT/TPR/M/227/Add.1 
 Page 159 
 
 
 The procedure for issuing the decision referred to in  paragraph 1 of this Article is subject to the 
provisions of the General Administrative Procedure Ac t, unless otherwise specified in this Regulation.  
Article 11 
The decision referred to in Article 10 of this Regula tion shall be issued on the basis of an application 
from a legal person who is obliged, with the application, to submit: 
1. act on the establishment of a legal person or an ex cerpt from the Court Register with data related to 
the field of activities, list of employees with eviden ce of their qualifications, description of their job 
experience, names and addresses of legal persons of their previous employment (copy of an 
employment record card), evidence of fulfilling th e requirements related to premises and technical 
equipment.  
2. other evidence related to the requirements prescr ibed in this Regulation depending on the type of 
professional environment protection activities; a list of expert environmental protection support and 
studies that the employee elaborated or participated  in the elaboration of, a list of expert activities 
related to the preparation and elaboration of environmental impact studies that the employee 
elaborated or participated in the elaboration of , a list of published expert works in the area of 
environmental protection, the contract referred to in Article 6 of this Regulation, the programme 
approval referred to in Article 7 of this Regulation. 
Article 12 
On the basis of submitted written evidence and a spot examination of the business premises and 
technical equipment the Expert Commission shall de termine if the requirements for the performance 
of professional environmental protectio n activities have been fulfilled.  
The Expert Commission shall have three members. 
The director of the State Directorate for Environmental Protection shall establish a separate Expert 
Committee for each activity referred to in Article 2 of this Regulation.  
Exceptionally, in co-operation with the Minister fo r education and sports, the director of the State 
Directorate for Environmental Protection shall establish an Expert Commission for the activities 
referred to in Article 2, paragra ph 1, item 4 of this Regulation.  
Article 13 
The Expert Commission shall be obliged to submit a report on the fulfilment or failure to fulfil the 
conditions for the performance of certain professi onal environmental activities within the shortest 
period possible, or at the latest, within 30 days from the date of a duly submitted application.  
Article 14 
Special costs, travel expenses and per diem allowa nces related to the necessary spot examination of 
the business premises referred to in Article 12, para graph 2 of this Regulation shall be borne by the 
person submitting an application.  
Article 15 
Approval for the performance of professional environm ental protection activities shall be granted for 
a three year period.  WT/TPR/M/227/Add.1 
Page 160  
 
 Six months before the expiry of the period referred to  in paragraph 1 of this Article, the procedure for 
the issuance of the approval shall be repeated at  the request of the interested legal person.  
Article 16 
 Approval for the performance of professional envi ronmental protection activities shall be revoked 
from a legal person even before the expiry of the pe riod referred to in Article 15, paragraph 1 of this 
Regulation if it is determined through inspec tion that it has ceased to fulfil the prescribed 
requirements or if it does not remove the established deficiencies within the period determined in the 
decision on inspection.  
Article 17 
The State Directorate for Environmental Protection sh all keep records of all legal persons who have 
been issued a decision granting the approval to  perform environmental protection activities.  
Records referred to in paragraph 1 of this Article shall contain:  
- legal person's name 
- number and date of issuing a decision on granting or denying approval, 
- the type of professional environmental protection activity, 
- a list of employees with data on th eir professional qualifications,  
- data on business premises and technical equipment.  
Article 18 
A list of legal persons granted or denied th e approval for the performance of professional 
environmental protection activities shall be published in the Official Gazette. 
Article 19 
This Regulation shall enter into force on the eight h day from its publication in the Official Gazette. 
Class: 351-01/96-02/17 No.: 5030116-97-1 Zagreb, 17 January 1997 
President 
Zlatko Mateša, M.Sc., m.p. 
1. On page 83 of the 1
st day replies, specifically Q5, we wonder if Croatia could further 
elaborate on the expected level of state aid to be disbursed to the shipbuilding sector this year and in subsequent years prior to its accession to the EU.  
Answer:
 
Croatia intends to privatise the shipbuilding sector a nd to comply the state aid to the sector with the 
EU competition rules. Public invitations to tenders  for shares in shipyards are in the course.  The 
outcome of these tenders is unknown.  On the other side, negotiations with the EU on these issues are 
ongoing and the exact outcome is hard to predict.   WT/TPR/M/227/Add.1 
 Page 161 
 
 
 2. For Q6 on the same page, with regards to Croatia's privatization plan for the shipbuilding 
sector, we wonder if Croatia could include informat ion on where we could find more relevant and 
detailed information, including contact points.  
Answer:  
Public invitations to tenders for shares in Joint Stock companies (shipyards) are in the course.  The 
Croatian Privatization Fund is institution in charge. 
Hrvatski fond za privatizaciju - Croatian Privatization Fund Ivana Lučića 6 
10 000 Zagreb – Croatia Tel: + 385 1 6346 111 
Fax: + 385 1 6115 568 
Please find more information on current tenders on:  www.hfp.hr
. 
Question from China  
It would be appreciated if Croatia could provide in formation on regulations for foreign investment in 
electricity, natural gas, oil and tourism. 
There is no special regulation pertinent to touris m investment and the legal framework for it is 
provided by the Act on Investment Promotion (OG 138/06 ).  All investors need to comply also with 
our national legislation on hospitality and touris m: Act on the Provisions of Tourism Services 
(OG 68/07) and The Hospitality and Catering Indu stry Act (OG 138/06, OG 152/08, OG 43/09), as 
well as with the special regulations subs idiary to the above mentioned Acts. 
LEGAL framework in energy sector  
The domestic and foreign companies are not distingu ished with respect to carrying out the energy 
activities. 
For carrying out the energy activity the licence fro m the Croatian Energy Regulatory Agency (HERA) 
has to be provided, i.e.;  for the respective activ ity (as for instance for gas production, electricity 
production, oil derivatives produc tion, trade) among the overall number of 28 activities which are 
subject to licences.  The criteria pursuant to whic h HERA issues the licences are provided for by the 
Regulation on Conditions for Carrying out an Energy Activity (OG 118/07 and 137/08).  The licences are issued for a period of 5-40 years, depending on  the activity, in line with the Regulation on the 
Period of Issuing Licences for Energy Activities (OG 50/09, 105/09). 
Legal framework for investments in oil and gas production
 
Exploration and exploitation of hydrocarbons (oil a nd gas) in Croatia is regulated by Mining Act 
(OG 75/09) and Concession Law (OG 125/08).  Both Mining Act and Concession Law are 
harmonized with the EU legislation.  
 WT/TPR/M/227/Add.1 
Page 162  
 
 Oil and petroleum products
 
Companies that invest in oil production, refineries, distribution and petrol sta tions have to respect:  
Act on Energy, Act on oil and petrol eum products market and Act on regulation of energy activities.  
They also have to respect the Regulation on th e requirements for wholesale and trade with foreign 
countries for specific goods.  This Regulation stipulates the quantity of storage (reservoirs) companies must have for each product. 
Energy subjects also have to respect the Regulati on on conditions for carrying out an energy activity 
(technical and financial as well as profes sional qualifications to be fulfilled). 
Gas and electricity
 
In the field of gas and electricity all investments need to respect The General conditions of the gas 
supply (OG 43/09) and electricity (OG 14/06) which define the rules of building, that should be 
completed by investors that are related to gas or electric power system (i.e.:  manufacturing facilities, 
distribution networks to end customers). 
In addition to these rules in the field of gas it is  necessary that investor meets all the requirements 
related to individual activities in accordance with th e Gas Market Act (OG 40/07, 152/08 and 83/09).  
In the field of electric power in  accordance with the Law on Electricity Market (OG 177/04, 76/07 
and 152/08) the production of electricity need s specific commitment  from the Ministry. 
Electricity from renewable energy resource  
Through the adoption of the new legislative framework  related to the reform of the energy sector in 
Croatia provisions were made for the development and use of renewa ble energy sources.  Based on 
the Energy Act (OG 68/01, 177/04, 76/07 and 152/08) and the Electricity Market Act (OG 177/04, 
76/07 and 152/08), five by-laws have  been adopted regulating the use, rights and liabilities, incentives 
and organization and institutions related to the implementation of renewable energy sources:  
Regulation on Fees for Promoting Electricity Production from Renewa ble Energy Sources and 
Cogeneration (OG 33/07, 133/07 and 155/08), the Re gulation on the Minimum Share of Electricity 
Produced from Renewable Energy Sources and Coge neration whose Production is Incentivised (OG 
33/07), Tariff System for the Production of El ectricity from Renewable Energy Sources and 
Cogeneration (OG 33/07), Ordinance on the Use of  Renewable Energy Sources and Cogeneration 
(OG 67/07), Ordinance on Acquisition of Status of eligible Electricity Producer (OG 67/07). 
All facilities built in Croatia, in the field of energy , must be included into urban planning documents 
and should undergo the procedure in accordance w ith the Law on Construction and Urban Planning 
(OG 76/07 and 38/09). 
Answer regarding information on regulations for fore ign investment in tourism will be provided in the 
stipulated terms.   WT/TPR/M/227/Add.1 
 Page 163 
 
 
 Additional questions posed by the People's Re public of China on the first day of the TPR 
meeting  
It would be appreciated if Croatia could provide in formation on regulations for foreign investment in 
electricity, natural gas, oil and tourism. 
Answer  
Remaining part of answer related to tourism: There is no special regulation pertinent to touris m investment and the legal framework for it is 
provided by the Act on Investment Promotion (OG 138/06 ).  All investors need to comply also with 
our national legislation on hospita lity and tourism:  Act on the Provisions of Tourism Services 
(OG 68/07) and The Hospitality and Catering Industry Act (OG 138/06, OG 152/08 and OG 43/09), 
as well as with the special regulations su bsidiary to the above mentioned Acts. 
Questions posed by Discussant H.E. Mr. Hannu Himanen
 
What is the latest growth prognosis for 2010 and beyond? 
The forecasts see domestic economic recovery taking pl ace already in 2010, which is in line with the 
last projections released by relevant international institutions that point to a recovery of the global 
economy.  The first release of Croatian Bureau of Statistics points that the fall of real GDP in 2009 
was 5.8%, while, in accordance with the above-mentione d, in 2010 we expect a real GDP growth of 
0.5% and its acceleration to 3.0% in 2011 and 3.5% in 2012. 
Could the Delegation provide us with updated info rmation about measures it has taken and intends to 
take in reaction to the crisis?  How do you see the balance between reducing public expenditure and 
stimulating economic growth?  
The spill-over effects of the global economic cris is on the Croatian economy which started towards 
the end of 2008 resulted in strong fall in the economic activity that continued at the beginning of 
2009.  The main channels of transmission of the nega tive effects of the crisis to the domestic economy 
were a fall in foreign demand fo r Croatian exports, changes in investor risk perception and the 
resulting worsening of the conditions on global fina ncial markets and deepening pessimism in terms 
of economic expectations.  However, following the str ong negative impact of the cr isis in the first half 
of the year which led to a sharp fall in the majo rity of GDP components, the fall in the economic 
activity slowed down in the remaining part of 2009 .  Such expectations can be confirmed by recent 
global economic developments, domes tic high-frequency economic indicators and the first release of 
GDP data which pointed to a slowdown in real GDP decline in the third and fourth quarter of the year. 
During the global financial crisis Croatian Nati onal Bank (CNB) took several steps in order to 
preserve stability of the exchange rate and overall financial stability.  When the crisis started, 
depreciation pressures replaced the appreciation pressures that had previously been a common feature 
of the foreign exchange market.  CNB reacted by providing foreign currency liquidity and by 
tightening domestic currency liquidity.  In Octobe r 2008 central bank abolished the Marginal Reserve 
Requirement9 thus releasing an approximate EUR 355 million and USD 129 million.  
                                                      
9 Applied for the four years, the Decision on the Marginal Reserve Requirement was aimed at curbing 
strong foreign borrowing by banks, obliging them to deposit part of the funds borrowed abroad (initially 24 
percent and 15, 40 or 55 percent in the more recent pe riod, depending on the financing source) in a special 
account with the Croatian National Bank .  As a result, banks' interest in foreign borrowing waned and the 
amount of their external debt gra dually decreased, with the significan t amounts of banks' additional foreign WT/TPR/M/227/Add.1 
Page 164  
 
 In November 2008, the CNB Council decided to redu ce Banks' reserve requirement rate from 17% to 
14%.  Furthermore, in January 2009, CNB increa sed the foreign exchange component of reserve 
requirement that is allocated in domestic currency from 50% to 75%.  In order to provide additional 
foreign currency liquidity in February 2009 the mini mum ratio of liquid foreign currency claims to 
foreign currency liabilities of banks was reduced from 28.5% to 20%, what resulted in freeing of 
EUR 2.1 billion. 
All mentioned changes of monetary policy instrume nts have substantially improved foreign currency 
liquidity of banking system, achieving the total am ount of released funds worth EUR 3.8 billion.  
Besides changes in instruments, CNB also intervened at the fore ign exchange market by selling 
EUR 328 million in January and EUR 185 million in February 2009.  
Regarding the fiscal policy, macroeconomic conditions  in 2009 led to a need for new measures aimed 
at ensuring the stability and liquidity of public fi nances.  The first 2009 budget revision was thus 
adopted in April 2009, reducing total revenues by 2.6 percenta ge points of GDP and total 
expenditures by 1.9 percentage points of GDP rela tive to the initial budget plan.  The second and third 
budget revisions were adopted in July, decreasing th e projected revenues by 1.9 percentage points of 
GDP and the projected expenditures by 0.5 percentage points of GDP relative to the previous plan.  
According to preliminary data and estimates for 20 09, the overall general government budget deficit, 
i.e., net lending/borrowing will be higher than pla nned in the range between 0.5 - 0.7 percentage 
points of GDP according to ESA 95.  
Moreover, aiming at creating additional room for th e financing of the private sector in the domestic 
financial market, the Government issued Eurobond after being absent from foreign financial markets 
for five years.  The first issue was in May, worth EUR 750 million and maturing in 2015, while the 
second issue was in November, worth USD 1.5 billion and with a 10-year maturity.  
These measures contributed to the stability of public  finances in 2009 in the circumstances of an 
economic crisis and created a starting point for impl ementation of the fiscal policy in the forthcoming 
period, aiming at ensuring system liquidity and cr eating the preconditions for economic recovery.  In 
regard to all taken measures duri ng 2009, and having in mind existing challenges, at the beginning of 
2010, the Government of Croatia prepared new guidelines for economic policy activities, aiming to 
maintain macroeconomic stability, foster economic development and strengthen investment activities. 
For that purpose the Government prepared two m odels of financing: M odel "A" and Model "B" 
Model "A" According to Model "A" the state will actively par ticipate in co-financing banks' credit placements for 
working capital financing through Croatian Bank for Reconstruction and De velopment (HBOR) in 
proportion 40% HBOR:  60% commercial banks.  The goal is to assure sufficient liquidity to companies to overcome difficulties in economy and eliminate negative effects of global economic and financial crisis.  As a prerequis ite for implementation of this mode l, the Council of Croatian National 
Bank has lowered the Reserve Requirement Rate fr om 14% to 13%, and then funds in amount of 
HRK 2 billion were directed to HBOR in a form of commercial banks' club credit.  The first auction 
for Model "A" was already successfully held in amount of HRK 200 million.  16 bids form banks 
arrived for the auction in total amount of HRK 357. 15 million, and with regard to the criteria of 
offered interest margin, 6 banks that offered the lowest  interest margin were selected.  It is important 
                                                                                                                                                                    
 
exchange reserves accumulated with the Central bank that served as a source of liquidity under unfavourable 
circumstances. 
  WT/TPR/M/227/Add.1 
 Page 165 
 
 
 to mention that the average interest rate by wh ich these six banks will approve credits within this 
Model is 5.05%, therefore it moves from lowest 4. 93% to 5.11% which is significantly lower than 
interest rates at which banks approved credits so far.  Considering that HRK 200 million of auction 
amount referred to HBOR's share in the credit whic h is 40%, the total credit potential which is on 
disposal to the entrepreneurs after the first auction is HRK 500 million.  
Model "B" 
According to Model "B" for which an auction w ill be held soon, the Government will establish 
guarantee fund through which it will assume part of  the risk coverage for new banks' credit 
placements.  Guarantee amount which the Governme nt will approve within the guarantee fund is 
HRK 2 billion.  This means, through joint forces,  at least HRK 4 billion could be channelled to 
entrepreneurs through this Model.  This Model is primarily intended for investment projects to ensure 
new investment and business cycle.  However, struct ure credits could also include credits which are 
necessary for sustainability of investment incl uding financing part of the working capital and 
reprogramming credits that have been contracted after 1st July 2008. 
While Croatia's eventual membership in the EU will certainly boost foreign investment, what 
measures has the Government taken or intends to take to further improve the business environment 
and boost investor confidence? 
Enactment of new Investment Pr omotion Act in 2006 (OG 138/06) introduced several new measures 
in comparison to the Investment Promotion Act (OG 73/00) in order to improve business and investor environment.  New investment incentive sch eme is focused on production process activity, 
establishment of technology and innovation centr es as well as investments into business support 
activities.  For the last investment activities, it al so ensures an increase in support for new job creation 
which is calculated on the basis of registered unemployment rate of the region (county) where the investment is taking place.  New Act makes no difference between domestic and foreign investors, in terms of priority in granting of incentive measures and equivalent treatment.  Investment incentives 
are now available even for existing companies, not strictly newly established ones.  Important change 
compared to the old Act is also a significantly lo wer minimum threshold required for eligibility for 
incentive measures (from 4 mil HRK to 300.000€).  As a completely new measure, incentives for 
large investment projects - inv estment projects of significant ec onomic interest were introduced, 
providing additional incentives for large investme nts in regions (counties) with registered 
unemployment rate exceeding 20%.  New Act on Invest ment Promotion defined all key provisions for 
complete alignment with "acquis communitaire" of  the European Union including the definition of 
eligible investment costs and maximum intensity of  aid.  It represents an instrument of regional 
development of Republic of Croatia, an instrume nt to increase regional competitiveness as a main 
pillar of future overall economic development. 
Improvements in business and investment environmen t are also a constant focus of the Trade and 
Investment Promotion Agency.  In cooperation with the Ministry of Economy, Labour and 
Entrepreneurship, the Agency formed a team of experts whose goal is to make additional 
improvements of the Investment Promotion Act.  The Agency, in cooperation with the Ministry and 
Croatian Chamber of Commerce prepares measures for internationalization of Croatian companies and business clusters, and their presence on internati onal fairs and business forums.  On the local and 
regional level the improvements are visible.  Th e Agency is recognized as the central place for 
investment facilitation and promotion. Regional t eam was founded and coordinated by the Agency 
and it is comprised of representatives of regional agencies.  Through the Regional team, the Agency 
implements continuous educational programs for i nvestment facilitation and promotion, and business 
environment development.  The Agency is also involved in business (industrial) zones development 
which are founded and developed throughout Croatia .  For development of larger business zones WT/TPR/M/227/Add.1 
Page 166  
 
 defined for attracting huge capital investments, the in tention is to apply for EU structural funds for 
infrastructure development. 
As of 01 February 2010, a project under the title "D evelopment of Investment Climate" is being 
implemented by the Ministry of Economy, Labour  and Entrepreneurship in cooperation with the 
Agency as an important partner.  The project is  being financed under EU pre-accession assistance 
(IPA) and presents a continuation of previously implemented projects using EU CARDS support and 
USAID, which resulted with the development of th e Investment Certificati on Programme for Regions 
(ICPR) and its implementation in twelve counties in Croatia.  These two phases of ICPR implementation assisted the County Administration a nd other relevant bodies in counties to strengthen 
capacities, capabilities and know-how related to  attracting new investments in a competitive 
environment, as well as to provide support to the implementation of investment projects and removal 
of obstacles.  Also, main objectives were th e improvement of communication, cooperation and 
coordination between regional and central institutions  involved in investment promotion as well as the 
creation of a single coherent service level offered by Croatia to foreign investors.  All twelve counties 
that participated in first two phases of ICPR programme received Certification as investor friendly 
regions.  The present project will build on the expe rience and the lessons learned so far and will 
continue the certification process for other counties that  did not participate in previous projects.  It 
will extend to all counties in Croatia the standa rd ICPR certification programme as well as develop 
and deliver an advanced certification programme to interested counties.  
When can we expect Croatia to sign the GPA?  Ar e further legislative measures necessary before it 
can do so? 
Croatia has received a few questions regarding the g overnment procurement. Croatia is fully aware of 
its commitment related to joining the Agreement on GPA and the accession to GPA could be foreseen 
for the period after the conclusion of ongoing negotiations for the revised GPA. 
Further legislative measures needed before Croa tia can sign the GPA refer only to national legal 
procedure necessary for the adopti on of international agreements. 
Could the Delegation provide further information as  to how the restructuring and privatization of 
state-owned enterprises is progressing, including the timetable? 
Pursuant to the Privatization Act, the Government of Croatia and the authorized institutions carry out 
the privatization plan. Time schedule of the priv atization accomplishment is hardly definable.  
Relatively unsatisfactory dynamics of the sale of th e companies in the majority ownership of the 
Croatian Privatization Fund (CPF) is the result of a demanding structure of the remaining portfolio (currently dominated by debt-strapped companies or companies burdened by high losses);  therefore 
the attempt to find a strategic partner is a long-te rm process and as a rule is accomplished in a few 
phases prior to bankruptcy or liquidation.  
According to the adopted Strategic Development Fr amework for 2006-13, the main goals in the area 
of privatization remain the accomplishment of priva tization of the companies from the state's portfolio 
managed by the Croatian Privatization Fund (C PF) with the exit from the market of hopeless 
companies and an adequate social security plan through the institutions of labour market and social 
policy, accomplishment of the privatization process in the shipbuilding industry in the course of 2010 
(the international public invitation to tender is underway) and transformation of a few institutions 
managing state property in a single institution that w ill efficiently and actively manage state property. 
As the Croatian Export Offensive Strategy (2007—10) is in its last year, could the Delegation give a 
preliminary assessment of its results?  Is Croatia  envisaging changes to its export promotion regime 
in view of the EU accession?  WT/TPR/M/227/Add.1 
 Page 167 
 
 
 After three years of implementation, the most significant impact of the Strategy is improved 
collaboration of all partners and stakeholders in supporting intern ationalisation and creation of new 
measures such as:  programs for export financing,  support through horizontal measures for export 
oriented companies, information centre for exporters, seminars, wo rkshops and education 
programmes for entrepreneurs implemented in a cooperation with Chambers  and entrepreneurial 
support institutions, strengthening of Croatian economic diplomacy and support to networking of 
entrepreneurs through clusters.  Also, funds from national budget in 2009 allocated for the implementation of the programmes based on the expo rt strategy has been increased significantly. 
The Competitiveness Strengthening and Internationa lization Programme, launched in 2009 is based 
on export strategy as one of its activities.  It has been developed with the objective to increase the 
level of internationalisation of  Croatian economy through strengt hening the capacities of export 
oriented SME's in developing new and competitive products.  The program is a combination of six 
incentive measures, three are implemented at the le vel of individual entrepreneurs and three at the 
level of association of entrepreneurs (clusters) durin g a joint appearance on the international markets.  
The program is implemented as a grant scheme with the following priorities: 
1. Establishment and incorporation of procedures for the testing and certification of Croatian 
products in order to ensure compliance with International Quality standards. 
2. Improving the marketing, promotion and presenta tion of Croatian products on the new markets 
3. Providing/organizing training for staff in tec hnical, marketing and qualit y assurance departments 
in order to ensure that the companies have human resources able to meet and implement the 
requirements needed to en hance their competitiveness. 
Croatia is in a process of harmonisation of the policie s in the area of internationalisation with EU best 
practices.  The main concern and issue of all our act ivities regarding internationalisation is to ensure 
that Croatian enterprises remain competitive within the single and global market.    
Could the Delegation explain what the Government is  doing in order to achieve this objective?  In 
particular, as the State has significant shares in sh ipyards, it would be interesting to hear how the 
restructuring and privatisation process is advancing in that sector. 
Question is related to the part of the Discussant's Statement - Sectoral Policies, manufacturing, i.e. 
shipbuilding industry.  
Regarding the shipbuilding industry and future plans for the privatisation of shipyards, as one of the 
possible and for the moment most favourable solutions  to the problems in shipbuilding industry has 
been chosen privatization of shipbuilding indust ry aiming at its restructuring.  Currently an 
international public call is underway to tender for shares of six shipyards in the major state ownership. 
The Government is determined to prepare this  uncommonly demanding privatization process of the 
shipyards in a quality and comprehensive way.  In  this process it needs to be assured that the 
restructuring through privatization will be carried out in accordance with national interests regarding 
preservation and improvement of prod uction and employment and at the same time will not be market 
distorting and will be performed in accordance wi th Croatian and European  regulations and rules 
concerning market competition. 
__________