Croatia WT/TPR/S/227/Rev.1 
 Page 25 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration and documentation 
1. All natural and legal persons, both domestic and foreign, wi shing to engage in business 
activities in Croatia must establish a company in accordance with the Companies Act (OG 111/93, as 
amended).  The process takes place in the Commercial Court1, where companies must register before 
commencing activities.2  Technical assistance may be provided, free of charge, by HITRO.HR, a 
"single access point" (Chapter II(4)).3  Under the Companies Act, companies can either be based on 
capital (private and public limited companies) or as  a partnership (general and limited partnerships 
and economic interest associations).  The Act al so regulates the establishment of branch offices and 
sole traders.  
2. All companies performing a trade activity are regist ered in the same court register.  However, 
the Ministry of the Economy, Labour and Entreprene urship (MELE) maintains a special registry for 
exporters and importers of military goods, and providers of services to the military in accordance with 
the Act on the Export and Import of Military and Non-Military Lethal Goods (OG 86/08).  Companies 
maye also record their activity in  the company's incorporation act.4  For craft activities, natural 
persons must be registered in the Crafts registry in their respective county or city of Zagreb office.5  In 
principle, there is no requirement that would ma ke importation conditional upon the existence of an 
agent or representative established in Croatia. 
3. Companies seeking to trade in certain " sensitive goods" (e.g. arms and ammunition, 
explosives, medicinal products and medical devices,  chemicals, nuclear materials, tobacco and 
tobacco products, energy, and cultural heritage items ) are required to submit to the Court an approval 
or other certificate for performing such activities, i ssued by the competent authority, before their 
incorporation (Chapter II(4)).  Following their inco rporation with a commercial court, companies are 
eligible to apply for import and export licences fo r these products.  The agency for medicinal products 
and medical devices issues licences and authorizations  only to the legal entities after incorporation of 
the company. 
4. While electronic signatures are recognized in Croatia, all customs documents must be 
submitted on paper/in writing, which make them lega lly binding.  The customs declaration is to be 
lodged by the importer on the Single Administrative Document (SAD) form.6  In addition to the SAD, 
introduced in 2000, Customs require the bill of lading (or air waybill for air cargo shipments), 
certificate of origin, commercial invoice, import licence (if applicable), health certificate (food, plants, 
animals), and certificate of conformity.  Croatia  does not require consular authentication or 
registration of customs documents in the country of origin.7  Goods are released as soon as the 
                                                      
1 Croatia has 13 Commercial Courts under the supe rvision of the High Commercial Court in Zagreb.  
The President of the High Commercial Court keeps a unique database of the court register for Croatia. 
2 Online registration has been possible since 21 October 2009. 
3 Technical assistance may include opening of a bank account, company name availability check, and 
company document verification (HITRO.H R online information.  Viewed at:  http://www.hitro.hr/Default.aspx? 
sec=43). 
4 Croatian Chamber of Economy online information.  Viewed at:  http://www2.hgk.hr/en. 
5 Article 10 paragraph 1 of the Trades and Craft Act (OG 77/93, 90/96, 102/98, 64/01, 71/01, 49/03 
revised text, 68/07, and 79/07). 
6 The SAD (consisting of 8 copies)  is used for customs declarations by the EU, and EFTA. 
7 WT/ACC/HRV/59, 29 June 2000. WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 26 
 
 
customs declaration has been verified or accepted without verification.  Over 2.5 million customs 
declarations are processed annually.8 
5. All fees charged by Croatian Customs were abolished in December 2008.  The Customs 
Administration, under the Ministry of Finance, used to charge a customs fee of HRK 10 and an 
administrative fee of HRK 50.  The customs fee, le vied upon the submission of a customs declaration, 
was used for the development and m odernization of Croatia's Customs.9  The administrative fee was 
charged for the customs declaration and the cal culation of import duties for goods carried by 
passengers.  For export customs declarati ons, 20% of the export value was charged.10 
(ii) Customs procedures and valuation 
6. The Customs Administration is in charge of  189 border crossings and 53 customs offices.  
The main legal statutes of the customs regime are the Customs Act (OG 78/99 as amended);  the Regulation implementing the Customs Act (OG 161/03,  as amended);  and the Rules on the use of 
forms for implementation of the Customs Act (OG 176/03) (Table II.1). 
7. Goods brought into the customs territory of Croatia can be placed under various customs 
regimes:  release of goods for free circulation;  transit;  customs warehousing;  inward processing;  
processing under customs control;  temporary admission;   outward processing;  exportation;  free zone 
or free warehouse;  and re-export from the customs territory.  The goods may also be destroyed or 
abandoned.
11 
8. Goods cannot be released until the customs debt is paid, unless a security is provided, either 
by depositing cash or a guarantee (including third-pa rty guarantee) with Customs.  The customs debt 
is payable within ten days, after which interest is charged;  in some cases, it may be paid after ten 
days, subject to the amount of debt including interest being secured. 
9. Customs controls, apart from on-the-spot checks,  are based on risk analysis using automatic 
data processing methods, based on criteria develope d in Croatia and, where appropriate, at the 
international level.  Risk assessment in Croatia is  based on three channels:  the red channel for high 
risk goods which need to be examined;  the ye llow channel for medium risk goods, which require 
additional documentation, and on which a decision is made whether to release or examine the goods; 
and the green channel, where there are no risks and goods are released immediately without any 
checks.  An information technology (IT) system for the implementation of risk management has been 
in operation in all customs offices since 22 Ja nuary 2008.  Nonetheless, Croatia's customs 
administration still has limited in-house capacity to  guarantee its IT services, and remains dependent 
on external companies.12 
10. The Act amending the Customs Act (OG 140/05) introduced the system of granting 
"authorized economic operator" status13 or authorized traders status.  The Customs Administration 
                                                      
8 Croatian Customs online information.  View ed at:  http://www.car ina.hr/engindex.htm. 
9 Article 7 of the Customs Act. 
10 Administrative Duties Act (OG 153/05) 
11 Article 4 of the Customs Act. 
12 European Commission (2008a). 
13 Criteria for granting authorized economic operator status include:  previous appropriate compliance 
with customs rules;  a satisfactory system of managing commercial and, where appropri ate, transport files that 
enables appropriate customs checks;  fulfilling the conditions required to perform customs representation in 
accordance with specific regulations;  proof of financial so lvency;  and, if necessary, appropriate security and 
safety measures.  Article 5(a) of Customs Act. Croatia WT/TPR/S/227/Rev.1 
 Page 27 
 
 
central office, in cooperation with other compet ent bodies, may grant the status to any economic 
operator registered in Croatia's customs territo ry;  however, the system is not yet operational.14 
11. Customs tariff classification may take place prior to importation (binding tariff information 
(BIT)), upon declaration (on the SAD) or after importation (in case of post-clearance verification).15  
Decisions by Customs on the application of customs regul ations can be appealed within 15 days at the 
headquarters of the Customs Administration (Article 7 of the Customs Act).  The holder of a BTI has the right to submit an appeal to the Ministry of Finance (Autonomous Service for Second Instance 
Administrative Procedures) through the Customs Administration headquarters, within 15 days of receiving the tariff information.
16  Final decisions can be contested before an Administrative Court.17  
The Customs Administration issues binding advance rulings in respect of tariff classification and 
origin of goods, upon receipt of written requests from any interested person.  In general, an advance 
ruling is valid for six years for tariff classification and three years for origin issues.18  During 2004-08, 
around 150 classification-related dis putes and 124 valuation-related di sputes were settled in court. 
12. Valuation matters are set out in Articles 29 to 48 of the Customs Act and Articles 66-93 of the 
Regulation Implementing the Customs Act.19  Valuation is defined as the value of goods for the 
purpose of levying ad valorem  customs duty on imported goods.20  The customs value of imported 
goods is the "transaction value".  If the customs value cannot be determined on the basis of the 
transaction value, alternative valuation methods are used in the sequence prescr ibed by the Agreement 
on Implementation of Article VII of the GATT 1994 (Customs Valuation Agreement).21  C u s t o m s  
must, upon the request of the importer, issue a written notification as to the level of the customs value 
and the method of its determinati on (Article 89.2 of the Regulation implementing the Customs Act).22  
Croatia uses the c.i.f. basis for valuation.23  According to the authorities, Croatia maintains reference 
prices on an ad hoc  basis, but these are not official.  Croatia  does not use simplified procedures for the 
valuation of fresh fruits and vegetables. 24 
13. Croatia does not have laws or regulations  relating to pre-shipment inspection. 
14. Croatia is a member of the World Customs Or ganization (WCO) and is a signatory of the 
International Convention on the Harmonized Commodity Description and Coding System (HS).25  
                                                      
14 According to the authorities, a system of "authorized economic operators" will be set up upon 
Croatia's accession to the EU. 
15 European Commission (2008a). 
16 Article 11 of the Regulation implementing the Customs Act. 
17 WTO document G/VAL/N/2/HRV/1, 16 January 2002. 
18 Article 12 of the Customs Act. 
19 In addition to Annexes 11, 12, 12a, 12b, and 12c of the Regulation. 
20 Article 30 of the Customs Act. 
21 Croatia implementation of the Decisions of the WTO Committee on Customs Valuation on the 
Valuation of Carrier Media Bearing Software for Data Processing Equipment, and on the Treatment of Interest 
Charges in Customs Value of Imported Goods on 30 November 2000.  See WTO document 
G/VAL/N/3/HRV/1, 16 January 2002. 
22 Croatia's legislation provides for dialogue between the importer and the customs officer in case of 
doubt regarding the declared transaction value.  
23 The determination of the customs value is relevant not only for the calculation of customs duties, but 
also for the imposition of the VAT on imported goods and for determining their origin. 
24 Croatian Customs Directorate online informati on.  Viewed at:  http://www.carina.hr/EN/ 
Documents/Carinski%20zakon%20RH%20-%20prijevod%20na%20engleski.doc. 
25 Croatia applied the HS from its beginning in 1988, as part of the former Yugoslavia, and later on the 
basis of succession.  As an independen t state, Croatia signed the Act of Acce ssion to the HS (OG 5/95).  Croatia 
became a contracting party to the Convention on 29 September 1994. WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 28 
 
 
(iii) Rules of origin 
15. Croatia applies non-preferential and preferential rules of origin.  The non-preferential rules 
are contained in Articles 23 to 27 of the Customs Act, under which origin is assigned to the country where the product was wholly obtained or where it underwent its last substantial, economically 
justified processing.  The Croatian Chamber of Commerc e is authorized to issue "proof of origin" for 
non-preferential origin.  Special rules are prescribed  for textile products a nd some other products.
26  
16. Preferential rules of origin are contained in th e preferential trade agreements to which Croatia 
is a party, i.e. the Stabilization and Associ ation Agreement, CEFTA 2006, EFTA, and Turkey 
(Chapter II(3)).  Croatia applies the same rules of origin to all its partners in such preferential 
agreements.  Croatia is still not included in the Pan-Europe-Med system of diagonal cumulation of 
origin. 
(iv) Tariffs, other duties, and taxes 
(a) MFN applied tariff structure 
17. Goods imported into Croatia may be subject to customs duties27, excise duties, and value-
added tax (VAT);  a stamp tax was abolished in 20 08 (section (i) above).  Croatia's tariff has been 
aligned with the Combined Nomenclature (CN) of the EU since 200228;  it has 10,559 lines 
(Table III.1).  Croatia's tariff comprises ad valorem  rates on 9,920 lines (93.9% of total lines, up from 
87.9% in 2000), and non- ad valorem  rates (specific, mixed, and compound), which apply to 
639 agricultural lines (6.1% of the total).29  Ad valorem  tariffs are applied on the c.i.f. customs value.  
Specific duties are levied on 45 lines, including cheese, cane or beet sugar, and grape vines in 
containers greater than 2 litres.  Mixed (alternate) duties apply to 478 lines (4.5% of the total), such as 
live animals, meat, dairy products, and preparations  of meat.  Compound duties (i.e. a combination of 
ad valorem  and specific tariffs) are levied on 116 lines (e.g . meat, edible vegetables, edible fruits, and 
nuts).  
18. Since its accession to the WTO, Croatia has re duced its applied MFN tariff.  The simple 
average MFN tariff declined from 12.1% in 2000 to 7.1% in 2009.30  The coefficient of variation, of 
1.4, reveals high dispersion of the tariff rates, which range from zero to 279.8%.  The modal (most 
frequent) rate is zero (Chart III.1).  The number of duty-free items jumped from 505 in 2000 (7.2% of 
                                                      
26 For textiles:  change of tariff heading;  insufficient working or processing (Annex 3B (and 
introductory notes in Annex 3A)).  For other products, rules of origin are prescribed in Annex 3C (and introductory notes in Annex 3A) of the Regulation Implementing the Customs Act. 
27 The Croatian government adopts its customs tariff for the following year no later than November of 
the current year.  The Ministry of Finance (Customs Administration) is responsible for the nomenclature and classification.  The Ministry of Ag riculture, Fisheries and Rural Developm ent is responsible for customs duties 
in Chapters 01-24, and the Ministry of Economy, Labour and Entrepreneurship for Chapters 25-97.  In addition, 
the Croatian Chamber of Economy and professional associations are also involved in setting the tariff. 
28 Under Articles 15(2) and 130 of the Stabilizati on and Association Agreement between Croatia and 
the EU, Croatia aligned its tariff with the CN on 1 Ja nuary 2002 and since then Croatia's tariff has been 
regularly updated following CN amendments.  The CN is, in turn, based on the 2007 HS. 
29 In its accession to the WTO, Croatia had 7,059 ta riff lines, of which 590 we re subject to compound 
rates ( ad valorem  and specific duties) and the rest were ad valorem .  Compound lines represented 8.4% of 
Croatia's total tariff.  There were no specific or mi xed rates (WTO document WT/ACC/HRV/59, 29 June 2000). 
30 Croatia's tariff is calculated taking into account the ad valorem  lines, the ad valorem  component of 
mixed and compound rates, as well as the ad valorem  equivalents (AVEs) of non- ad valorem  rates (i.e. specific 
lines, and the non- ad valorem  component of mixed and compound duties).  The AVEs are calculated using 
average unit prices, i.e. as the ratio of specific duties to import unit values, estimated by the ratio of import to 
import quantities/volumes for the latest available year, mostly 2008.  Due to the absence of imports, 12 specific lines are not calculated.  The Croatian authorities provided the import data. Croatia WT/TPR/S/227/Rev.1 
 Page 29 
 
 
the total) to 4,443 in 2009 (42.1%;  i.e. 16.1% of WTO agricultural tariff lines and 50.2% of WTO 
non-agricultural tariff lines).  These include pr oducts under the Information Technology Agreement 
(ITA) and the Agreement on Trade in Civil Aircraft , as well as pharmaceuticals, paper, iron and steel, 
non-ferrous metals, wood, furniture, toys, and certain cat egories of live animals.  Cider apple, in bulk, 
from 16 September to 15 December is subject to  the highest tariff rate (an AVE) of 279.8% 
(Table AIII.1).31  Tariff quotas (on agricultural products) ar e applied to 0.7% of total tariff lines 
(Table III.2). 
Table III.1 
Structure of the MFN tariff by sector, 2009 
All products 
(HS 01-97) HS 01-24 HS 25-97 WTO Agriculture WTO non-
agriculturea 
 No. of lines % No. of 
lines % No. of 
lines % No. of 
lines % No. of 
lines % 
Total 10,559 100.0 2,815 100.0 7,744 100.0 2,515 100.0 8,044 100.0 
Ad valorem 9,920 93.9 2,176 77.3 7744 100.0 1,876 74.6 8,044 100.0 
   Duty free 4,443 42.1 323 11.5 4120 53.2 405 16.1 4,038 50.2 
   Dutable 5,477 51.9 1,853 65.8 3624 46.8 1,471 58.5 4,006 49.8 
Non- ad 
valorem  639 6.1 639 22.7 0 0.0 639 25.4 0 0.0 
   Specific 45 0.4 45 1.6 0 0.0 45 1.8 0 0.0 
   Mixed 478 4.5 478 17.0 0 0.0 478 19.0 0 0.0 
   Compound 116 1.1 116 4.1 0 0.0 116 4.6 0 0.0 
a Includes petroleum. 
Source : WTO Secretariat estimates, based on data provided by the Croatian authorities. 
(3.8)(2.5)(14.0)(36.7)(42.1)
(0.5) (0.4)
01,0002,0003,0004,0005,0006,0007,000
0 0-10 10-20 20-30 30-40 40-50 >500102030405060708090100
The figures in brackets correspond to the percentage of total lines. 
WTO Secretariat calculations, based on data provided by the Croatian authorities.Chart III.1
Breakdown of applied MFN tariff rates, 2009
Number of tariff lines
Note:
Sourc e:Percentage
Number of lines 
Cumulated percentage (right-hand scale)
 
                                                      
31 HS 0808101000. WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 30 
 
 
Table III.2  
Structure of the MFN tariff, 2009  
(Per cent)  
  Applied Bound 
1. Bound tariff lines (% of all tariff lines) n.a. 100.0 
2. Duty-free tariff lines (% of all tariff lines) 42.1 23.4 
3. Non- ad valorem  tariffs (% of all tariff lines) 6.1 6.3 
4. Tariff quotas (% of all tariff lines) 0.7 0.7 
5. Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 0.1 5.3 
6. Simple average tariff rate 7.1 8.5 
 Agricultural products (WTO definition)a 16.3 17.4 
 Non-agricultural products (WTO definition)b 4.2 5.7 
 Agriculture, hunting, forestry, and fishing (ISIC 1) 10.8 12.0 
 Mining and quarrying (ISIC 2) 2.9 6.1 
 Manufacturing (ISIC 3) 6.8 8.2 
7. Domestic tariff "spikes" (% of all tariff lines)c 7.1 6.0 
8. International tariff "peaks" (% of all tariff lines)d 10.7 11.4 
9. Overall standard deviati on of applied rates 9.9 9.5 
10. "Nuisance" applied rates (% of all tariff lines)e 1.0 1.5 
 
n.a. Not applicable. 
 
a WTO Agreement on Agriculture definitions. b Excluding petroleum. 
c Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate.  
d International tariff peaks are defined as those exceeding 15%. e Nuisance rates are those greater than zero, but less than or equal to 2%.  
 
Source:  WTO Secretariat calculati ons, based on data provided by the Croatian authorities. 
19. Using the WTO definition32, MFN applied tariffs average 16.3% on agricultural products and 
4.2% on non-agricultural goods (Table  III.3).  On the basis of ISIC (Revision 2) definition, the 
average MFN tariff in agriculture (10.8%) is highe r than in manufacturing (6.8%), and in mining and 
quarrying (2.9%).  Chart III.2 shows the MFN tariff distribution by ISIC sector.  
Table III.3 
Summary analysis of the MFN tariff, 2009  
Applied 2009 rates 
Analysis No. of linesaSimple avg. 
tariff (%) Range tariff 
(%) Std-dev 
(%) CV Imports 2008 
(US$ million)
Total 10,559 7.1 0-279.8 9.9 1.4 30,727.0 
HS 01-24 2,815 15.7 0-279.8 14.2 0.9 2,625.3 
HS 25-97 7,744 4.0 0-20 4.8 1.2 28,101.7 
By WTO definitionb             
Agriculture 2,515 16.3 0-279.8 14.9 0.9 2,508.5 
 Live animals and products thereof 457 25.5 0-46 13.0 0.5 406.7 
 Dairy products 173 30.0 5-45 10.2 0.3 128.4 
 Coffee and  tea, cocoa, sugar, etc. 362 14.9 0-81.5 12.6 0.8 772.4 
 Cut flowers and plants 60 6.7 0-19 4.4 0.7 65.0 
Table III.3 (cont'd)
                                                      
32 WTO definition of agriculture:  HS Chapters 01-24 less fish and fishery products (HS 0301-0307, 
0509, 0511.91, 1504, 1603-1605 and 2301.20) plus some selected products (HS 2905.43, 2905.44, 2905.45, 
3301, 3501-3505, 3809.10, 3823.11-3823.19, 3823.6 0, 3823.70, 3824.60, 4101-4103, 4301, 5001-5003, 5105-
5103, 5201-5203, 5301, and 5302). Croatia WT/TPR/S/227/Rev.1 
 Page 31 
 
 
Applied 2009 rates 
Analysis No. of linesaSimple avg. 
tariff (%) Range tariff 
(%) Std-dev 
(%) CV Imports 2008 
(US$ million)
 Fruit and vegetables 581 15.3 0-279.8 14.7 1.0 394.4 
 Grains 66 6.0 0-45 8.2 1.4 83.4 
 Oil seeds, fats, oils, and their products 192 6.4 0-40 8.7 1.4 262.1 
 Beverages and spirits 349 18.9 0-76 17.2 0.9 171.0 
 Tobacco 34 11.0 0-38 13.1 1.2 53.5 
 Other agricultural products 241 3.8 0-20 5.1 1.3 171.6 
Non-agriculture (excl. petroleum) 7,996 4.2 0-25 4.9 1.2 24,303.2 
 Fish and fishery products 429 8.1 0-25 4.6 0.6 144.0 
 Mineral products, precious stones, and 
 precious metals 534 5.8 0-18 5.1 0.9 1,938.7 
 Metals 1,078 2.8 0-15 4.2 1.5 3,299.2 
 Chemicals and photographic supplie s 1,479 1.4 0-6.5 2.5 1.8 3,413.0 
 Leather, rubber, footwear, and travel 
 goods 281 5.5 0-15 4.9 0.9 678.8 
 Wood, pulp, paper, and furniture 491 1.2 0-12 2.4 2.0 1,647.4 
 Textiles and clothing 1, 218 8.4 0-14 4. 6 0.6 1,530.5 
 Transport equipment 330 6.1 0-15 4.4 0.7 4,302.4 
 Non-electric machinery 966 3.4 0-15 4.5 1.3 3,460.8 
 Electric machinery 515 3.8 0-15 4.9 1.3 2,243.8 
 Non-agricultural articles n.e.s. 675 3.2 0-18 4.8 1.5 1,644.5 
By ISIC sectorc       
Agriculture, hunting, forestry, and fishing 786 10.8 0-279.8 15.4 1.4 755.9 
Mining 125 2.9 0-14 4.5 1.6 3,561.5 
Manufacturing 9,647 6.8 0-81.5 9.2 1.4 25,803.9 
By stage of processing       
Raw materials 1,416 8.2 0-279.8 12.5 1.5 4,605.9 
Semi-processed products 3,026 2.7 0-81.5 5.1 1.9 5,216.8 
Fully processed products 6,117 9.0 0-76 10.3 1.1 20,904.2 
 
a Tariff rates are based on a lower frequency (n umber of lines) since 12 specific lines with no ad valorem  equivalents are excluded. 
b 48 tariff lines on petroleum products are not taken into account. 
c International Standard Industrial Classification (Rev.2).  Electricity, gas, and water are excluded (1 tariff line). 
 Note: CV = coefficient of variation. 
 
Source : WTO Secretariat estimates, based on data provided by the Croatian authorities. 
20. Upon its accession to the EU, Croatia will have to adopt the EU common external tariff and 
its bound rates.33 
                                                      
33 The EU simple average MFN applied tariff was estim ated at 6.7% in 2008, i. e. 17.9% for agricultural 
goods (WTO definition) and 4.1% for non-agricultural products.  Using ISIC (Revision 2) definition, the EU 
average MFN tariff was 9.3% for agriculture, 6.7% for manufacturing and 0.2% for mining and quarrying (WTO, 2009). WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 32 
 
 
42.1
43.1
69.6
24.836.7
36.2
25.6
43.914.0
13.7
4.8
20.12.5
2.5
3.13.8
3.8
4.50.5
0.3
2.50.4
0.3
1.1
05001,0001,5002,0002,5003,0003,5004,0004,500
All products
Manufacturing
Mining
Agriculture
Duty free 0-10 10-20 20-30 30-40 40-50 >50Chart III.2
MFN tariff distribution by ISIC sectora, 2009
Number of lines
a
Source:Labels indicate share of total tariff lines, by sector.  
WTO Secretariat calculations, based on data provided by the Croatian authorities. 
21. In aggregate, Croatia's applied MFN tariff disp lays mixed escalation: negative from first-stage 
processed goods with an average tariff rate of 8.2% to semi-finished products on which tariffs average 
2.7%, and positive from the latter to finished goods (9 %).  Further disaggregation reveals that tariff 
escalation is positive in some manufacturing industri es, with escalation more pronounced in food and 
beverages, followed by textiles and apparel, thereby providing higher levels of effective protection to 
those industries than that reflected by the nominal rates (Chart III.3). 
(b) MFN bound tariffs 
22. Upon its accession to the WTO, Croatia bound all its tariff lines at a final simple average rate 
of 8.5% (against a simple average applied MFN rate of 7.1% in 2009), ranging from zero (e.g. on 
products under the ITA) to 60% (e.g. on coffee, tea,  and sugar).  It bound its tariff lines on agricultural 
products (WTO definition), at a final simple averag e rate of 17.4% (compared with a simple average 
applied MFN rate of 16.3%);  the final simple average bound tariff rate for non-agricultural goods is 
5.7% (simple average applied MFN rate of 4.2%). 
23. In its Schedule CXLVII, Croatia bound tariff quotas for agricultural products (HS in 
parentheses):  (i) meat of bovine animals (0201 and 0 202);  (ii) meat of bovine animals, and boneless, 
high quality meat (0201.30 and 0202.30);  (iii) m eat of swine, fresh, chilled or frozen (0203.29);  
(iv) wheat and meslin (1001.90);  (v) raw sugar (1701.1);  (vi) cane sugar (1701.11);  (vii) other 
refined cane or beet sugar (1701.991);  (viii) filled chocolate and other food preparations (1806.31);  
and (ix) chocolate and other food pr eparations not filled (1806.32).  Croatia WT/TPR/S/227/Rev.1 
 Page 33 
 
 
0.02.04.06.08.010.012.014.016.018.020.0Chart III.3
Tariff escalation by ISIC 2-digit industry, 2009
Per cent
Sourc e: WTO Secretariat estimates, based on data provided by the Croatian authorities.
All products
Food, beverage s
Textiles,
apparel
Wood product s
Paper, printing
Chemicals ,
plastics
Non-metalli c
minera l
products
Basic meta l
products
Fabricated meta l
products
Othe r
manufacturin gNOT APPLICABLEAgriculture
MiningRaw materials Semi-processed Fully processed
NOT APPLICABLE
 
 
(c) Tariff preferences  
24. Croatia has preferential trading agreements w ith 39 partners:  the EU-27, the other seven 
parties of CEFTA 2006, the four EFTA states, and Turkey (Chapter II(3)).  Trade under these preferential agreements represented 76.9% of Croatia' s total exports and imports  in 2008 (Table II.3), 
86.3% of exports and 72.5% of imports.  Non-agri cultural products (WTO definition) are generally 
granted duty-free treatment, and agricultural products are duty-free or carry reduced rates of duty, 
often under tariff quotas.  The average preferentia l tariff (on all products) under these agreements 
ranges from zero (under the agreements with Bosn ia and Herzegovina and UNMIK/Kosovo all tariffs 
are duty-free) to 4.2% (under the ag reement with Turkey) (Table III.4). 
25. Under Croatia's trade agreements, tariff pref erences on agricultural products range from 
abolition/reduction of duties for unlimited quantities,  to reduced or abolished duties within tariff 
quotas (Chapter IV(1)(ii)).  Licences are used to ad minister such tariff quotas (section (v) below).  
Croatia does not apply preferential tari ff quotas to non-agricultural products. 
26. Croatia does not grant autonomous preferences, but goods originating in Croatia benefit from 
the Generalized System of Preferences (GSP) in nine trade partners (Chapter II(3)(v)). WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 34 
 
 
Table III.4  
MFN and preferential simple average tariffs, 2009  
 
MFN 
EU(27) 
Iceland 
Norway 
Switzerland 
and Liechtenstein 
Albania 
Bosnia and 
Herzegovina 
UNMIK/ 
Kosovo 
FYR of 
Macedonia 
Moldova 
Montenegro 
Serbia 
Turkey 
Duty free lines (%) 42.1 84.2 80.3 80.1 80.3 86.2 100.0 100.0 96.7 76.7 88.2 86.7 76.2 
Duty rates > 15% 10.7 8.6 10.3 10.3 10.2 8.3 0.0 0.0 1.8 10.6 5.1 6.5 10.6 
All products 7.1 3.2 3.8 3.8 3.8 3.0 0.0 0.0 0.6 4.1 2.1 2.8 4.2 
HS 01-24 15.7 11.8 14.3 14.4 14.3 11.1 0.0 0.0 2.3 15.5 8.1 10.5 15.7 
HS 25-97 4.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
WTO Agriculture 16.3 13.1 16.2 16.2 16.1 12.5 0.0 0.0 2.6 16.2 9.0 11.7 16.2 
Animals and products 
thereof 25.5 24.3 25.4 25.5 25.5 19.4 0.0 0.0 4.4 25.5 17.6 24.8 25.5 
Dairy products 30.0 24.6 30.0 30.0 30.0 30.0 0.0 0.0 2.5 30.0 17.8 17.8 30.0 
Coffee and tea, cocoa, 
sugar, etc. 14.9 8.0 14.7 14.9 14.3 4.9 0.0 0.0 0.5 14.9 1.3 6.7 14.9 
Cut flowers, plants 6.7 2.5 6.7 6.7 6.3 1.2 0.0 0.0 0.0 6.0 0.0 0.0 6.7 
Fruit and vegetables 15.3 11.7 15.3 15.3 15.3 14.7 0.0 0.0 0.9 15.3 8.9 9.9 15.3 
Grains 6.0 2.6 6.0 6.0 6.0 0.0 0.0 0.0 0.0 6.0 0.0 3.7 6.0 
Oil seeds, fats and oils 
and their products 6.4 5.4 6.2 6.2 6.2 0.0 0.0 0.0 0.2 6.3 0.0 3.1 6.3 
Beverages and spirits 18.9 17.3 18.6 18.6 18.9 18.9 0.0 0.0 9.2 18.7 16.0 16.1 18.9 
Tobacco 11.0 6.7 11.0 11.0 11.0 5.9 0.0 0.0 2.1 11.0 11.0 11.0 11.0 
Other agricultural products n.e.s. 3.8 1.4 3.7 3.7 3.7 0.9 0.0 0.0 0.0 3.8 0.0 0.0 3.3 
WTO Non-agriculture (incl. petroleum) 4.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.0 0.0 0.4 
Fish and fishery 
products 8.1 1.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7.5 0.3 0.3 8.1 
Mineral products, 
precious stones and 
precious metals 5.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Metals 2.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Chemicals and 
photographic supplies 1.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Leather, rubber, footwear and travel 
goods 5.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Wood, pulp, paper and 
furniture 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Textile and clothing 8.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Transport equipment 6.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Non-electric machinery 3.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Electric machinery 3.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Non-agriculture articles 
n.e.s. 3.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
ISIC              
Agriculture, hunting, 
forestry & fishing 10.8 8.3 9.7 9.7 9.7 7.3 0.0 0.0 0.6 10.7 5.7 7.3 10.7 
Mining and quarrying 2.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Manufacturing 6.8 2.8 3.4 3.4 3.4 2.6 0.0 0.0 0.6 3.7 1.9 2.5 3.7 
Escalation              
01 – First stage of 
processing 8.2 5.1 6.0 6.0 6.0 4.6 0.0 0.0 0.3 7.5 3.4 4.5 7.7 
02 – Semi-processed 2.7 0.5 0.7 0.7 0.7 0.4 0.0 0.0 0.1 0.8 0.1 0.6 0.8 
03 – Fully processed 9.0 4.1 4.9 4.9 4.9 3.8 0.0 0.0 0.9 5.0 2.9 3.5 5.0 
 
Source: WTO Secretariat calculations , based on data provided by  the Croatian authorities.  Croatia WT/TPR/S/227/Rev.1 
 Page 35 
 
 
(d) Other duties and taxes 
27. Certain products may be subject to excise duti es and VAT in addition to customs tariffs.  
Croatia does not levy any surcharges on imports.  The legislation on excise duties is laid down in a 
number of acts per product category (Table II.1) , as well as in implementing regulations.34  Excise 
duties are levied on:  coffee;  tobacco and tobacco  products;  alcoholic be verages;  non-alcoholic 
beverages;  beer (alcoholic and non-alcoholic);  passenger cars, motorcycles, vessels, and aircraft;  
mineral oils;  and luxury products (Table III.5). 
Table III.5 
Excise duties, 2009 
Products Tax rate (HRK and/or percentage)  
Coffee (per kg, net weight)   
Raw coffee (with or without caffeine)  5.0 
Roasted coffee (with or without caffeine)  12.0 
Coffee skin and pulp  15.0 
Coffee substitutes containing coffee, ex tracts, essences, concentrates and 
preparations based on coffee-based extr acts, essences or concentrates  20.0 
In ready-made beverages that contain co ffee, extract, essence or concentrate of 
coffee (decaffeinated too) in water, milk or the like, with or without additions 5-20 depending on the percentage of coffee in 1 kg 
net weight of the product  
Non-alcoholic beverages (per hl) 40.0 
Alcoholic beer (per hl) 200.0 
Non-alcohol beer (up to 0.5% of absolute alcohol) (per hl)  60.0 
Alcohol and alcoholic beverages (per litre absolute alcohol) 60.0 
Alcohol in wine and  fruit wine (per litre absolute alcohol) 0.0 
Tobacco products  
Cigarettesa (1,000 pieces/% of the retail price) 180 per 1,000 pieces and 30% of the retail price 
Other tobacco products   
Pipe, smoking, snuff, chewing tob acco, and other tobacco products 38.0 per 1,000 grams 
Cigars 1.1 per piece 
Cigarillos 4.4 per 20 pieces pack 
Passenger cars and motorcyclesb, c, vessels and aircraftc  
0-50,000  13% 
50,000-100,000  6,500 + 18% on amount over 50,000 
100,000-150,000  15,500 + 23% on amount over 100,000 
150,000-200,000 27,000 + 28% on amount over 150,000 
200,000-250,000  41,000 + 33% on amount over 200,000 
250,000-300,000  57,500 + 38% on amount over 250,000 
300,000-350,000 76,500 + 43% on amount over 300,000 
350,000-400,000 98,000 + 48% on amount over 350,000 
400,000-450,000 122,000 + 53% on amount over 400,000 
450,000-500,000 148,500 + 58% on amount over 450,000 
> 500,000 177,500 + 63% on amount over 500,000 
Motor petrol (MB 98 and MB 86) and othe r kinds of leaded petrol irrespective 
of octane value and commercial name  2.40 
Motor petrol (BMB-98, BMB-95, and BMB-91) and other kinds of unleaded 
petrol irrespective of octane  value and commercial name  1.65 
Diesel fuel (D1, D2, D3) and other ki nds of diesel fuel irrespective of 
commercial name  1.0 
Eurodiesel, diesel fuel coloured with a blue dye  0.0 
Table III.5 (cont'd) 
  
 
                                                      
34 Other relevant legislation includes the General Tax Code, the Customs Act, and the Offences Act. WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 36 
 
 
Products Tax rate (HRK and/or percentage)  
Heating oil, extra light a nd special light (EL, LS)  0.3 
Mineral oils (per kg, net weight)  
All kinds of heating oil, light, medium, and heavy 0.0 
Jet fuel and aviation fuel 0.0 
Liquefied petroleum gas (LPG) 0.1 
All kinds of paraffin 1.4 
Luxury productsd 30% of sale price (without VAT) 
 
a According to the Law on Tobacco, cigare ttes are classified as:  A (popular group) , B (standard group), and C (extra group).  
b Excise duties on passenger cars, on passenger cars with rotary mo tions of the pistons and on moto rcycles that are not deemed to 
be new are increased by 50% and for passenger cars with a cylinder capacity of over 1,600 cm3 and for motorcycles with a 
cylinder capacity of over 250 cm3 by 100%.   Excise duties shall not be paid on el ectric passenger cars and motorcycles. 
c The taxation base is the duty-inclusive customs value for im ports, and the sale price (without VAT) for locally produced good s. 
d The following are considered luxury products:  (i) jewellery a nd similar products (cultured pear ls, worked (except for strung , 
framed and mounted);  non-industrial diamonds, worked, unframed  and un-mounted;  precious stones, worked, except for simply 
sawn and roughly shaped (except for diamonds);  jewellery and pa rts of jewellery of precious metals including those coated or 
plated with precious metals;  goldsmiths' or filigree makers' pr oducts and parts of them of silv er including those coated or pl ated 
with precious metals;  goldsmiths' and f iligree makers' products of precious metals;  goldsmiths' and filigree makers' products  
and parts of them of common metals coated or plated with preci ous metals;  products of precious metals coated or plated with 
precious metals;  products of natural or cu ltured pearls;  and coins minted for speci al occasions, including gold coins (that i s not 
legal tender), and numismatic coins;  (ii)  clocks and watches (clock and watches wr ist, pocket and other personal watches, with  a 
casing or strap of precious metal or of metal coated with preci ous metals, straps or bracelets for wrist watches or parts for s traps 
and bracelets of precious metals or of metals  plated with precious metals or of metals that have been gilt or silvered);  
(iii) clothing and footwear of fur and reptile  skins;  (iv) miscellaneous (ivory, tortoi seshell, coral, moth er of pearl, worked , and 
made of these materials, cigarette lighters (mechanical or el ectrical), pocket, table and others of precious metals;  and  
(v) pyrotechnic products for fireworks, re volvers and pistols, hunting shotguns, incl uding combination shotguns and carbines. 
 
Source : Information provided by the Croatian authorities. 
28. Excise duties are levied on both impor ted and domestically produced goods.35  The taxation 
base is the duty-inclusive customs value for impor ts, and the sale price (without VAT) for locally 
produced goods.  For imports, the excise duty is asse ssed and collected by the customs office at the 
same time as customs duties.  In general, taxpa yers self-assess the amount for locally produced goods, 
and pay within 30 days.  However, the duty on luxury products is to be paid within 10 days after the 
end of the calendar month in which the tax debt was incurred.  Imported goods (of foreign origin) 
stored in free zones are not subject to excise duty.  The tax debt arises at the moment of supply of the products from the free zones into the customs territory of Croatia. 
29. Since its accession to the WTO, Croatia has in troduced new legislation on excise duties in 
order to harmonize them with the acquis .  A new Excise Duty Act, which will enter into force on 
1 January 2010, aims at further ali gning Croatia's legislation with the acquis , primarily on:  general 
arrangements for products subject to excise duty; ge neral rules for producing, holding, and monitoring 
these products under excise-duty-suspension arrangement s;  and with other EC directives regulating 
the excise taxation system for alcohol and alcoholic  beverages (including bee r), tobacco products, and 
energy products and electricity. 
30. Under the VAT Act (OG 47/95 as amended) and re levant Ordinances, three VAT rates apply 
on domestic and imported goods and services:  23% (general rate)
36;  10% (accommodation services;  
agency commissions for such services;  and newspa pers and magazines with the exception of those 
that contain advertisements or serve advertising purposes);  and zero (all types of bread and milk;  
                                                      
35 Excisable goods brought in, imported, or received for personal purposes ar e exempt, as are goods 
that are exempt under the provisions of the customs legislation. 
36 Under the Amendment of the Value Added Tax Act (OG 94/09), the general VAT rate was increased 
from 22% to 23% on 1 August 2009. Croatia WT/TPR/S/227/Rev.1 
 Page 37 
 
 
professional, scientific, artistic, cultural and educa tional books, schoolbooks, and scientific journals;  
certain medicines and orthopaedic aids;  a nd services of the public screening of films). 
31. VAT on imported goods is assessed and collect ed by the Customs Administration.  Until 
31 December 2009, VAT is applied on the customs valu e of imports plus customs tariffs, and excise 
duties if applicable.  As from 1 January 2010, the taxable amount includes the following factors, in so 
far that they are not already included in the value for customs purposes:  customs duties, excise duties, 
levies and similar charges paid at importation of goods, excluding VAT and expenses, such as 
commission, packing, transport and insurance costs, incurred up to the first place of destination within 
Croatia.37  VAT is applied on the sale price on locally produced goods. 
32. Croatia has three types of VAT exemptions:  inland exemptions, import exemptions, and 
export exemptions (section (2)(iv) below).  Inland in stitutions and services subsectors that are exempt 
from VAT on the supply of goods and services are listed in Articles 11 and 11(a) of the Amendment of the Value Added Tax Act (OG 87/09, in force from 1 January 2010) and includes:  supply of universal postal services and of goods incidental thereto;  hospital and medical care and closely related services supplied by bodies in  health institutions governed by p ublic law;  services supplied by 
groups of persons whose activities are exempt fro m or are not subject to VAT;  insurance and 
reinsurance transactions;  and the gr anting, negotiation and management of  credit.  In addition, renting 
of residential premises is exempt from VAT;  and the sale of real estate constructed before 1 January 1998 is not subject to VAT. 
33. VAT exemptions on imports are listed in Artic le 12 of the Amendment of the Value Added 
Tax Act (OG 87/09) and include:  final imports of goods of which the supply by a taxable person 
would in all circumstances be exempted within the territory of Croatia;  im ports of personal luggage, 
non-commercial goods carried by travellers from abro ad, as stipulated by customs regulations;  and 
household goods imported by natura l persons moving into Croatia, unde r the conditions stipulated by 
customs regulations
38;  imports of consignments from abroad not exceeding HRK 160 under the 
conditions stipulated by customs regulations39;  imports of goods under diplomatic and consular 
arrangements, which qualify for exemption from customs duties;  and imports of goods by 
international organizations recognized by Croatia and by members of such organizations under the 
conditions stipulated by the international c onventions establishing the organizations or by 
headquarters agreements.  
34. Under the Waste Act (OG 178/04, 111/06, 60/08  and 87/09) and the Basel Convention, 
domestic enterprises dealing with w aste and hazardous waste are subject  to an administrative tax of 
HRK 1,000 at the moment of issuance of the licence for waste management by the competent authority.  The licence is valid for up to five years. 
35. Upon its accession to the WTO, Croatia bound other duties and charges at zero. 
(e) Duty and tax concessions 
36. Article 187 of the Customs Act provides for general exemptions from customs duties and 
taxes for:  (i) goods determined compulsory by  international agreements;  (ii) goods of non-
commercial nature brought in by travellers;  (iii)  goods sent from abroad free of charge by natural 
persons to natural persons in Cr oatia, of non-commercial nature, as prescribed;  (iv) medals and 
                                                     
 
37 Amendment of the Value Added Tax Act (OG 87/09). 
38 The exemption does not apply to alcohol and alcoholic beverages,  tobacco and tobacco products. 
39 The exemption does not apply to alcohol and alco holic beverages, tobacco and tobacco products, 
perfumes and eaux de toilette. WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 38 
 
 
awards obtained at international events and gift s received in the framework of international 
relationships;  (v) goods for basic human needs, such as food, medicaments, clothes, or bedding, 
imported by humanitarian organizations for distributi on to jeopardized persons and victims of natural 
and other disasters40;  (vi) humanitarian organizations and associations for blind, deaf, and hearing 
impaired persons, and for persons with muscular  and neuromuscular diseases - specific equipment, 
apparatus and instruments, as well as spare parts and expendable materials not manufactured in Croatia;  (vii) trade marks, patents, mode ls and accompanying documents and forms for 
acknowledging patents or innovations, sent to orga nizations for the protection of royalties and 
industrial property;  (viii) certain objects
41;  (ix) agricultural, cultivation, stock-breeding, forestry, and 
bee-keeping yields produced on the property of Cr oatian citizens living in the border zone, having 
possessions in the border zone of the neighbouring country;  (x) equipment for the prevention and extinction of fires, not manufactured in Croatia  and not the subject of cooperation ventures of 
Croatian manufacturers;  (xi) items imported, for reasons of relocation, by physical persons
42;  
(xii) items on business inventories, of persons reloca ting to Croatia;  (xiii) items inherited abroad;  
(xiv) goods used for repair, maintenance and restor ation of protected cultural monuments;  (xv) goods 
to be used directly in the operation of museums, archives, restoration activities, libraries, fine art 
activities, musical/drama activities, etc.;  (xvi) goods , in the form of a donation to cultural institutions 
and other non-profit legal persons;  and (xvii) rese archers, writers and artists own pieces of work 
created abroad;  (xviii) passenger cars for personal use by disabled persons43;  (xix) engine fuels and 
lubricants contained in factory built-in tanks of ro ad motor vehicles and in special containers;  (xx) 
items related to a commercial activity (samples for commercial promotion, objects intended for 
examination, analysis, and testing, and auxiliary ma terial for the protection of goods or care of living 
animals during transportation);  and (xxi) coffins with remains and urns with ashes and other usual 
decorative funeral items, and goods intended for th e construction, maintenance or decoration of 
cemeteries and monuments to victims of war on the customs territory of Croatia.  
37. In addition, a general customs duty exemption a pplies to fish and other sea-products caught in 
waters outside the territory of Croatia and importe d by ships registered in Croatia and flying the 
Croatian flag, or products manufactured from such fish on factory ships meeting the registration 
requirements in Croatia and flying the Croatian colours.44 
38. Croatia also grants duty and tax concessions for free zones and as part of investment 
incentives (sections (2)(v) and (3)(i) below). 
                                                      
40 The relief does not include alcohol and alcoholic beverages, tobacco products, and motordriven 
vehicles.  The relief is granted only to organizations whose entries in the accounts and procedures enable the 
Customs Directorate to verify transactions related to such goods. 
41 These are:  forms and documents received by governmental ins titutions for performing public 
warrants;  objects that presen t evidence in legal or other proceedings in  front of the governmental institutions of 
Croatia;  exemplars of signatures and printed circular-letters sent as part of information-exchange between 
public services or banking institutions ;  official forms received by the Na tional Bank of Croatia;  draft-plans, 
technical drawings, models, descriptions, and similar documents to fulfil the conditions for participating in international tenders organized within the country;  printe d forms, used in international traffic of vehicles and 
goods as official documents, according to in ternational agreements, and parcel post. 
42 These items can be brought into Croatia within 12 months from the day of return or relocation to 
Croatia. 
43 Persons who are assigned a physical disability rating of 100% or a minimum of 80% rating of 
impaired locomotor function, in proportion to the physical disability. 
44 Article 191 of the Customs Act. Croatia WT/TPR/S/227/Rev.1 
 Page 39 
 
 
(v) Import licensing, controls, and prohibitions 
39. The importation of some products (e.g. certain an imals, plants, narcotics, arms, asbestos and 
ozone depleting substances) are prohibited for vari ous reasons, such as health, environment, public 
security and order, cultural heritage or the fulfilment of international obligations, e.g. under the 
Convention on International Trad e in Endangered Species of Wild Fauna and Flora (CITES).  
According to the authorities, temporary import prohibiti ons are also in line with the latest updates on 
hazardous diseases from the World Organization of Anim al Health (OIE) and based on EC legislation 
for certain diseases (section (vii)(c) below). 
40. Croatia's import (and export) licensing system is  regulated by the Trade Act (OG 87/08, 116/08, 
and 76/09);  the Act on Export and Import of Military  and Non-Military Lethal Goods (OG 86/08);  the 
Regulation Specifying Goods Subject to Export and Import Licences (OG 6/09 and 73/09);  the 
Regulation on Import and Export Controls for R ough Diamonds (OG 97/03, 142/03, 176/04, 14/06, 
90/07, 64/08, and 61/09);  and Ordinance on the Ce reals Market Organization (OG 75/08, 80/08, 114/08 
and 125/08).   
41. Import licensing applies to:  (i) products affecti ng public security, order, health, environment, 
and cultural heritage (non-automatic)45 (Table AIII.2);  (ii) rough diamonds (non-automatic);  (iii) 
agricultural products that are subject to tariff quotas (non-automatic);  and (iv) cereals (automatic). 
42. Items in the first category of products include :  uranium and some electrical machines and 
apparatus (licence issued by the State Office fo r Radiation Protection);  military goods and non-
military lethal goods (e.g. hun ting guns, sport guns and com ponents and ammunition), nuclear 
reactors, and gold (Ministry of Economy, Labour and Entrepreneurship);  and telecommunications 
equipment such as transmitters, radar, radio remote  controls and radio navigation instruments (Croatian 
Post and Electronic Communications Agency).  In  addition, some medici nal products and medical 
devices, cells and tissues used for transplantation, and narcotics require licences from the Ministry of 
Health and Social Welfare.  Licenc es for medicinal products and medica l devices are also required from 
the Agency for Medicinal Pr oducts and Medical Devices. 
43. Imports of rough diamonds require a certificate issued by the authorized body of the 
exporting country and verified by the authorized branch office of the Customs Administration.46  The 
Regulation on Import and Export Control for Rough Diamods sets out a system for implementing the 
Kimberley process certification scheme.47  A WTO waiver has been granted concerning the 
Kimberley Process Certification Scheme for Rough Diamonds.48  According to the authorities, rough 
diamonds in Croatia are mostly imported for the production of tool grinders. 
44. The third licensing regime is used to administ er imports of agricultural products that are 
subject to tariff quotas either on an MFN basis or  under Croatia's preferential trade agreements.49  The 
                                                      
45 Article 49 of the 2008 Trade Act. 
46 Article 51 of the 2008 Trade Act. 
47 The Kimberley process is is a joint-governments industry and civil society initiative to stem the flow 
of conflict diamonds, i.e. rough diamonds used by rebel movements to finance wars against legitimate 
governments.  It imposes extensive requirements on its members to enable them to certify shipments of rough 
diamonds as "conflict-free".  Croatia has participated in it since August 2003 (Kimberley Process online 
information.  Viewed at:  http://www.kimberleyprocess.com). 
48 Croatia and other WTO Members were granted a waiv er from obligations under Article I, Article XI, 
and Article XIII of the GATT 1994 , initially from 1 January 2003 until 31  December 2006, and subsequently 
until 31 December 2012.  See WTO do cument WT/L/676, 19 December 2006. 
49 Licences for tariff quotas under preferential or fre e-trade agreements is governed by the relevant 
decrees specific to these agreements. WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 40 
 
 
Ministry of Agriculture, Fisheries and Rural Deve lopment (MAFRD) is responsible for issuing these 
licences.  The fourth regime, also under MAFRD, applies to cereals, with the objective of monitoring trade flows.
50  
45. The four licensing regimes apply equa lly to imports from all countries.51  For agricultural 
products (except cereals), licences are valid until the end of the calendar year;  a licence for cereals is 
valid for 60 days.  In most cases, import licences fo r non-agricultural products are valid for six months.  
The validity of any licence (except weapons and narcotics) may be extended upon the request of the 
licence holder.  There are no penalties for the non-utiliz ation of a licence or part  of a licence, with the 
exception of cereals where the pe nalty for non-utilization is the rete ntion of the deposit lodged at the 
time of application.  Licences are not transferable between importers.  An administrative fee is set at 
HRK 125 for each licence for non-agricultural produc ts, and at HRK 70 for each tariff item number 
for agricultural products (including cereals).  A de posit or advance payment is required for an import 
licence for cereals.52  Applications in respect of non-agricultural products may only be rejected if the 
importer does not meet the conditions stipulated in  international conventions for specific goods or 
standard criteria for transportation.  An importe r denied a licence may initiate an administrative 
dispute before the Administrative Court.53  As the majority of the tariff quotas are allocated using a 
pro rata system, if the demand for licences is highe r than the available quota, the allocation of quotas 
is carried out using a coefficient of proportional reduction.54  Licence application for tariff quotas 
allocated on a first come, first served system, can be submitted throughout the year;  for tariff quotas 
allocated under a different method, licences applica tions should be made betw een 1 and 20 December 
for the following year's quotas.55 
(vi) Contingency trade measures 
46. Contingency trade remedies are regulated under the Trade Act56;  the Regulation on the 
Manner and Procedure of Determ inating Antidumping and Countervailing Duties (OG 139/04);  and 
the Regulation on Safeguard Measures (OG 73/02 and 33/03).  The competent authority for initiating 
anti-dumping, countervailing and safeguard inves tigations is the Ministry of Economy, La bour and 
Entrepreneurship (MELE).57  The decision on initiating an investigation procedure is published in 
The Official Gazette .  
47. Since its accession to the WTO in 2000, Croatia  has neither imposed nor initiated any anti-
dumping or countervailing measures.  On 23 June  2009, Croatia imposed a provisional safeguard 
measure on imports of semi-hard cheese (eme ntaler, edam, and gouda) and cheese substitutes.58   
48. Croatia may impose anti-dumping duty on a product imported at less than its normal value 
and if it has been determined during the investig ation procedure implemented by MELE, that it causes 
                                                      
50 See WTO documents G/LIC/N/1/HRV/4, 18  September 2009, and G/LIC/N/3/HRV/4, 
27 October 2009. 
51 The licensing system can be abolished/changed by  the Government without changing the Trade Act. 
52 Upon submission of the application for an import licence for cereals, the importer must pay a 
security of HRK 7.30 per tonne.  MAFRD will reimburse the payment after 30 days from the date of licence 
validity provided the import has taken place. 
53 WTO document G/LIC/N/3/ HRV/4, 27 October 2009. 
54 New importers and newly founded companies are treated the same as all other importers. 
55 WTO documents G/LIC/N/1/HRV/4, 18 September 2009, and G/LIC/N/2/HRV/1, 9 October 2009. 
56 Articles 43-45 (anti-dumping), Articles 46-48 (c ountervailing) and Articles 29-35 (safeguards). 
57 WTO document G/ADP/N/14/Add.19, 20 October 2004. 
58 Decision on implementing the provisional safegu ard measures on import of semi-hard cheese and 
cheese substitutes (OG 103/09) on 23 June 2009.  The expected duration of the provisional measure was 200 days.  See WTO document G/SG/N/7/HRV/1 and G/SG/N/11/HRV/1, 31 July 2009. Croatia WT/TPR/S/227/Rev.1 
 Page 41 
 
 
or threatens to cause material injury to the domestic production.  A countervailing duty may be 
imposed to eliminate the impact of subsidized im ports, that cause or thr eaten to cause injury.  A 
proposal for imposing anti-dumping or countervailing duties may be submitted by any natural or legal 
person, or trade company or economic associa tion acting on behalf of domestic production. 
49. MELE may impose a provisional duty where prelim inary investigation shows that dumping or 
a subsidy exists and that there is sufficient evidence of injury.  Provisional anti-dumping or 
countervailing duties have a maximum validity of four months;  however, under special 
circumstances, the period may be extended to six or nine months, respectively.  A definitive anti-
dumping or countervailing duty will expire, at least, five years from its imposition or from the date of 
its mot recent verification if such verification procedure covers dumping or subsidization and injury.  
The verification procedure must be concluded within 12 months and, at the latest, within 15 months 
from the date of its initiation. 
50. A safeguard measure may be imposed if partic ular goods are imported in increased quantities, 
and if such imports cause or threaten to cause injury to domestic production producing like goods.59  
A proposal for initiating a safeguard investigation may be submitted by any natura l or legal person, or 
economic association acting on behalf of domestic production.  Inter ested parties have the right to be 
heard during the investigation.  The measure may be applied for four years, extendable to eight years 
in total.  A provisional duty not exceeding 200 days  may be imposed, in exceptional circumstances, if 
MELE determines that there is clear evidence the incr eased imports have caused or are threatening to 
cause serious injury to the domestic production. 
(vii) Standards and other technical requirements 
(a) Standardization, testing, and certification 
51. Croatia is transposing various elements of the EU technical requirements into its domestic 
legal system by adopting legislation on, inter alia , standardization, accreditation and conformity 
assessment, and metrology; and by enacting some  sector-specific laws, such as on chemicals 
(REACH).60  Croatia's legal framework includes, inter alia , the Accreditation Act (OG 158/03 and 
75/09);  the Standardization Act (OG 163/03), th e Act on Technical Requirements for Products and 
Conformity Assessment (OG 158/03 and 79/07);  th e General Product Safety Act (OG 30/09);  and 
the Metrology Act (OG 163/03, 194/03 and 111/07).  It is aimed at increasing the competitiveness and 
quality of exports;  ensuring that they do not harm the environment and that they conform to health and safety norms;  and ensuring equal treat ment for imported and domestic products.  
52. The State Office for Standardization and Metrol ogy (DZNM), under the Ministry of Science, 
was established in 1991 as the overarching bod y responsible for metrology, accreditation, 
standardization, and certification.  In July 2005, the functions of standardization, accreditation, and 
metrology were legally and administratively separ ated and the DZNM was replaced by four 
independent institutions.  Three we re established as public institutions under MELE:  the State Office 
for Metrology (DZM), responsible for legal metr ology, pre-packages, precious metals, and type 
approval of vehicles;  the Croatian Standards Ins titute (HZN), the national standards body and the 
TBT enquiry point
61;  and the Croatian Accreditation Agency  (HAA), the national accreditation body, 
                                                      
59 Safeguard measures may be applied only when th e investigation proves a causal relation between the 
increased import and the injury or threat of injury to domestic production.  
60 REACH is the EU Regulation on Registration, Evaluation, Authorization and Restriction of 
Chemicals.  It entered into force on 1 June 2007 (WTO, 2009). 
61 The Croatian Standards Institute (HZN) replaced the State Office fo r Standardizati on and Metrology 
as the TBT enquiry point (WTO docu ment G/TBT/ENQ/35/Rev.2, 13 May 2009).  The HZN's responsibilities WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 42 
 
 
which supports the implementation of technical legisl ation in Croatia.  The fourth institution, the 
Croatian Metrology Institute (HMI) is under the Ministry of Scien ce, Education and Sport and deals 
with scientific and industrial metrology.  These institu tional changes were also made to comply with 
the EU conformity assessment and standardizat ion requirements.  MELE is responsible for 
administrative and other activities pertaining to quality infrastructure, including the coordination and 
development of national policy on standardizat ion, accreditation, conformity assessment and 
metrology.62  In addition, the Croatian State Inspectorate (DIRH) is, inter alia , in charge of 
supervising the conformity a nd safety of certain products. 
53. MELE also has overall responsibility for ensuri ng compliance with Croatia's obligations 
under the WTO TBT Agreement.63  Croatia has accepted the Code of Good Practice for the 
preparation, adoption and application of standards.64  It has submitted 38 notifications to the TBT 
Committee (up to September 2009), almost all conc erning regulations on metrological requirements.65  
No specific trade concerns have been ra ised in the Committee regarding Croatia.  
54. Croatia's regulations for industrial products are based on the EU's "Old Approach" (laying 
down detailed specific technical requirements) a nd the "New and Global Approach" (setting-up of 
essential requirements defined to meet health, safet y, and environmental objectives).  The technical 
characteristics of the products are given in the st andards (voluntary) drafted by the stakeholders 
following the procedures of the European standardi zation organizations.  Technical regulations are 
applied to products for which safety is an issue, such as construction products, medical devices, and 
particular electrical equipment.  These products ar e subject to testing, certification or prior approval 
procedures.  Technical regulations in Croatia are developed by various Central State Administration 
Bodies.  The heads of these government bodies ad opt, according to their competence and scope of 
activities, technical regulations and determine conf ormity assessment procedures.  All new technical 
regulations are published in the Official Gazette .66   
55. According to the authorities, new technical regul ations or national standards are prepared only 
when the regulatory authorities consider internationa l standards to be ineffective or inappropriate due 
to climatic, geographical, or technological factors.  In preparing original national standards, and in 
accordance with Croatia's obligations under the Code  of Good Practice for standardization, HZN 
notifies the new project to the European system (CEN INFOPRO).67  Copies of draft national 
standards may be provided to other WTO Member s upon request.  The HZN allows all interested 
parties 60 days to comment on draft national standa rds.  Information on new Croatian standards are 
published in the HZN bulletin, HZN Glasilo . 
56. Croatia has continued to harmonize its national st andards with internati onal or regional, in 
particular European, standards.  Around 98% of Eu ropean standards have been adopted as Croatian 
standards.  At end October 2009, 24,226 standards we re in force in Croatia, of which 33 were national 
                                                                                                                                                                     
include:  preparation, adoption and publication of Croatian standards and other documents related to 
standardization;  keeping a register of Croatian standa rds;  and editing, publication, and distribution of Croatian 
standards.  Croatian Standards Institute online informati on.  Viewed at:  http://www.hzn.hr/english/uredba.html. 
62 MELE is also responsible for overall coordination of the four  institutions, cooperation with 
ministries and transposition and implementation of directives into the Croatian legal system.  Act on Amendments to the Act on the Structure and Scope of Central State Administrative Organizations (OG 27/08), 
which entered into force in March 2008. 
63 WTO document G/TBT/2/Add.73, 24 January 2003. 
64 WTO documents G/TBT/CS/N/169, 2 August 2006, and G/TBT/CS/2/Rev.15, 2 March 2009. 
65 WTO document series G/TBT/N/HRV/2. 
66 Act on Technical Requirements for Products and Conformity Assessment (OG 158/03). 
67 The information is publicly available on the HZN website.  Viewed at:  www.hzn.hr. Croatia WT/TPR/S/227/Rev.1 
 Page 43 
 
 
standards;  20,491 were adopted from European st andards (including international standards);  and 
4,175 were adopted  from  ISO and/or IEC standards. 
57. The Croatian Accreditation Agency  (HAA) is responsible for, inter alia , accreditation of 
testing and calibration laboratories, medical labor atories, food quality and safety, accreditation of 
veterinary inspection bodies, certification and inspec tion bodies, construction products, lifts and other 
industrial products, as well as accreditation of certifi cation bodies for Quality Management Systems, 
Environmental Management Systems and personnel.   HAA has granted 157 accreditation certificates;  
it carries out surveillance on accredited bodies annu ally.  HAA has signed cooperation agreements 
with the accreditation bodies of Bosnia and Herze govina, Montenegro, FYR of Macedonia, the Czech 
Republic, and Hungary.68  Moreover, HAA has conducted joint training activities and exchange of 
assessors with Slovenia, and has recently undergone peer evaluation by the European co-operation for 
Accreditation (EA) for the purpose of signing a mu tual recognition agreement (EA MLA) in 2010.  
58. Conformity with technical requirements may be  certified through a supplier declaration of 
conformity (first party), or certificate of conformi ty (third party).  Importers are responsible for 
aspects covered in the manufacturers' declaration of conformity.  Product liability is established 
through the Civil Obligation Act (OG 35/05), as amended. 
59. Pre-market mandatory certification for importe d and domestic cosmetics was abolished in 
October 2008, although foreign test reports may be recognized certain  conditions.  Since 2008, quality 
control at the border has been abolished;  im ports subject to quality control included food and 
agricultural products, furniture, cement, te xtiles, and electrical and gas appliances.69  
60. The Croatian State Inspectorate (DIRH) is, inter alia , in charge of supervising the conformity 
and safety of products placed on the market or used in inter alia :  machinery, electrical equipment, 
energy efficiency of household appliances, refrigera tors, freezers;  lifts, pressure equipment hot water 
boilers, construction products, metr ology, personal protective equipment, crystal glass, textiles, and 
general safety of products, furniture, wood, oil fuels, motor vehicles.  There are currently 
94 accredited testing laboratories;  32 accredited inspection bodies;  and various accredited 
certification bodies.  Market surveillance is carried  out by inspectors from the DIRH.  The DIRH has 
recently aligned its methods of operation to EU market surveillance good practice.70  
61. Separate regulations (technical regulations transposing EU dir ectives) on market surveillance 
contain a safeguard clause foreseeing the withdrawal of compliant products that are nonetheless found to endanger health and safety.  A new regulation h as been adopted on the System for Rapid Exchange 
of Information (RAPEX) on products representing risk s for consumer health and safety.  The system 
will take effect upon Croatia's accession to the EU.  Market surveillance is financed by the State 
budget. 
62. The Croatian Standards Institute (HZN) is a me mber of the International Organization of 
Standardization (ISO), the International Electro-technical Commission (IEC), the European 
Telecommunications Standards Institute (ETSI), NS O member.  HZN was accepted as member of the 
                                                     
 
68 HAA is a member of the European co-operation fo r Accreditation (EA) and an associate member of 
the International Laboratory  Accreditation Cooperation. 
69 Pursuant to the State Inspectorate Act (OG116/08 and 123/08) and sub-legislations which determined 
the list of imported products subject to quality control, i.e. Regulation establishing products requiring a quality 
certificate (OG 127/99 123/05) and Regulation on covering the costs of quality inspection of products requiring 
a quality certificate (OG 127/99).  
70 Delegation of the EU to Croatia online informati on.  Viewed at:  http:// www.delhrv.ec.europa.eu/ 
?lang=en&content=1900. WT/TPR/S/227/Rev.1 Trade Policy Review 
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European Committee for Standardization (CEN) and of the European Committee for Electrotechnical 
Standardization (CENELEC) in November 2009.71  Croatia is also a member of the International 
Atomic Energy Agency (IAEA), the Internationa l Organization of Legal Metrology (OIML), the 
European Collaboration in Lega l Metrology (WELMEC), European  Collaboration in Measurement 
Standards (EURAMET), and the Bureau Internationa l de Poids et Mesures (BIPM).  Croatia is a 
signatory to the Metre Convention and the CIPM Mutual Recognition Agreement and the Rotterdam 
Convention on the Prior Informed Consent Procedure for Certain Hazardous Ch emicals and Pesticides 
in International Trade. 
(b) Marking, labelling, and packaging 
63. To ensure consumer protection, Article 17 of the Consumer Protection Act (OG 79/07, 
125/07, 79/09 and 89/09) prescribes that product inform ation must contain all relevant information 
needed to help the consumer make an informed decision when buying products.  These data must be 
presented clearly, visibly, and legibly and writte n in Croatian language and Latin script;  other 
languages and characters easily comprehens ible to consumers are not excluded. 
64. Labelling, presentation, and advertising of food and nutritional labelling of food is regulated 
by the Ordinance on labelling, a dvertising and presentation of food (OG 41/08) and the Ordinance on 
nutritional labelling of food (OG 29/09), adopted pu rsuant to the Food Act (OG 46/07 and 155/08).  
The Directorate for Food Safety and Quality, under MAFRD, is responsible for drafting and 
interpreting such regulations as well as for the majority of regulations on food quality for specific 
categories.   
65. Croatia will apply the so-called "C marking" until the use of CE marking becomes mandatory 
upon accession to the EU or the conclusion of a mutual recognition agreement with the EU.  Manufacturers or their authorized representatives regist ered in Croatia or any natural or legal person 
who places a product on the market or puts one into service, must affix the conformity marking and guarantee that the product has been designed, construc ted and tested in the prescribed manner, that it 
complies with all applicable technical requirements, and that it has a written declaration of 
conformity, a test report or a certificate of conformity.
72 
(c) Sanitary and phytosanitary measures 
66. Croatia's legal framework on SPS  includes:  the Food Act73; the Veterinary Act (OG 41/07 
and 155/08);  the Animal Protection Act (OG 135/06);  the Sanitary Inspection Act (OG 113/08);  the Act on Veterinary Medicinal Products (OG 84/08);  the Wine Act (OG No. 96/03);  and the Plant 
Health Act (OG No. 75/05).  In March 2008, Cr oatia adopted the Strategy for Transposition, 
Implementation and Enforcement of the acquis  for Food Safety, Veterinary and Phytosanitary 
Policy.
74  
                                                      
71 HZN was accepted as CEN member on 25 November 2009 and as CENELEC member on 
16 November 2009. In both cases with effect as from 1 January 2010.  
72 Ordinance on the form, content and graphic symbol of the conformity marking for products 
confirming compliance with the prescribed technical requirements (OG 46/08). 
73 The Food Act sets out general and specific requirements, including on food and feed safety and 
quality;  the official control system;  crisis and emergency situation management;  the rapid alert system;  
hygiene;  labelling requirements;  and use of genetically modified organisms (GMOs) in food and feed. 
74 European Commission (2008a). Croatia WT/TPR/S/227/Rev.1 
 Page 45 
 
 
67. MAFRD has the overall responsibility for food saf ety in Croatia and for ensuring compliance 
with the WTO SPS Agreement.  MAFRD has been d esignated as the central competent authority for 
food safety, feed safety, and hygiene, as well as the organization of official controls.75  The Ministry 
of Health and Social Welfare has competency to ensure food safety in the area of contaminant and 
pesticide residue control.  The Croatian Food Agen cy (HAH) is responsible for consumer protection 
and risk assessment;  official controls are carried out by MAFRD, the Ministry of Health and Social 
Welfare, and DIRH.  
68. Croatia has three enquiry points, all under MAFR D:  the Veterinary Directorate (sanitary 
matters and animal health), the Veterinary Inspec tions Directorate (control and inspection of sanitary 
matters and animal health), and the Directorate of Agriculture and Food Industry (phytosanitary 
matters and plant protection).  MAFRD is in th e process of notifying the WTO SPS Committee of the 
Veterinary Inspections Directorate (OG 35/08) as its third enquiry point.  In addition, the Directorate 
for Food Safety and Quality, also under MAFR D, functions as the SPS notification authority.  
69. WTO Members have raised specific concerns  in the SPS Committee regarding Croatia's 
restrictions on pork imports , and its import ban on live animals and meat products.76  According to the 
authorities, Croatia's import restrictions on animals a nd products of animal origin are in line with EU 
legislation and OIE recommendations for prevention of occurrence and spread of contagious diseases.
77  No cases of Transmissible Spongiform Ence phalopathy (TSE) have been reported in 
Croatia;  a ban on feed from meat and bone meal is  in force since 2001.  Croatia is free from classical 
swine fever (CSF) in domestic pigs, without vacci nation, but CSF may be present in the wild pig 
population.  Since 3 March 2008, no CSF outbreak has been observed in domestic  pigs in Croatia.  
Croatia has never submitted an emergency notification to the SPS Committee and only one 
notification concerning new or modified SPS measures.78  
70. According to the authorities, Croatia's SPS me asures are based on international standards, 
guidelines, and recommendations, and on regulations, d ecisions, and directives in force in the EU.  
All SPS measures are based on international standa rds;  and local provinces are not allowed to 
establish their own SPS measures.  SPS measures are gi ven legal effect through national legislation.  
71. Official controls of food and feed have to be  carried out on the basis of a risk assessment.  
While the Croatian Food Agency (HAH) is responsible  for risk assessment, risk management is the 
responsibility of the Directorate for Food Safety a nd Quality, the Veterinary Inspection Directorate, 
and the Directorate for Agriculture and Phytosan itary Inspection of the MAFRD, the Sanitary 
Inspection Directorate of the MHSW, and the Stat e Inspectorate.  HAH establishes methods for risk 
assessment in all phases of production, processing, and distribution of food and feed.  According to 
the authorities, the methods used to analyse the risks associated with importation of animals and 
associated with food are in accordance with the relevant models developed by the OIE.  Where such 
models do not exist, MAFRD determines the measures to be applied in cooperation with the Croatian 
Veterinary Institute and Veterinary Faculty or  other scientific institutions, taking into account 
scientific evidence in accordan ce with the SPS Agreement.  
72. The Directorate for Food Safety and Quality is  responsible for establishing and managing a 
Rapid Alert System for Food and Feed known as CRO  RASFF at the national level, and has been 
designated as the RASFF single national contact point  for the EU.  CRO RASFF aims to ensure rapid 
                                                      
75 MAFRD also serves as a contact point for communication with the EU on SPS issues. 
76 WTO documents G/SPS/R/29, 17 June 2003 and G/SPS/R/30, 4 September 2003. 
77 Import restrictions currently in force were published in the Official Gazette  133/09, 130/09, 127/09, 
110/09, 104/09, 96/09, 68/09, 66/09, 23/09, 134/08, 66/08 and 94/07. 
78 WTO document G/SPS/HRV/1, 31 July 2003. WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 46 
 
 
data flow within the official control system of food and feed, as well as rapid and effective control 
activities and measures.79   
73. The Veterinary Inspections Directorate is respons ible for risk management of imports, and for 
monitoring residues in animal and products of anim al origin in imports.  It draws up the Annual 
Monitoring Plan for residues in imported cons ignments in accordance with the Ordinance on 
principles governing the organization of vete rinary checks on products across the border 
(OG 132/08).80 
74. GMOs are subject to authorization, labelling, and traceability requirements.81  A register and 
coding system was established in  2007 and requirements for the traceability and placement on the 
market of GMOs began in 2008.  No labelling is required for products containing traces of GMOs 
below a 0.9% threshold, provided this is adventiti ous and technically unavoidable.  GMO seeds have 
not been authorized in Croatia.  The Veterinary  Directorate draws up the Annual National Residue 
Monitoring Plan (NRMP) for detecting r esidues in live animals and animal products.82  The use of 
certain beta-agonists and substances having a hormona l or thyrostatic action is prohibited in stock 
farming.83   
75. Quality requirements for specific food categor ies are regulated by specific regulations 
(e.g. beef, preserved tuna, milk products, and fruit juices) (Table III.6);  while 23 categories of products (e.g. live animals, and pr oducts of animal origin) are subject to public and animal health 
controls by veterinary inspectors (Table III.7).  A ccording to the authorities, Croatia has 17 permanent 
and 9 temporary border veterinary inspection posts .  These posts control and inspect live animals, 
products of animal origin, feed of animal orig in, straw and hay, and other items through which 
contagious diseases may be transmitted or which endanger human and animal health.  Animals are 
subject to veterinary control when imported or in transit and/or welfare control when exported.  The 
border veterinary inspector is responsible for documentary checks as well as identification and 
physical checks.  Imports of live animals or pr oducts of animal origin must be accompanied by 
international veterinary certificates for anim al health and public health, indicating, inter alia , origin, 
destination, and mode of transport.  
76. Veterinary and sanitary inspection requirement s are identical for domestic products and 
imported.  Imports may enter if they are from ap proved third-country establishments inscribed on a 
list established by the EU.
84  Imports may also, exceptionall y, be approved from non-EU listed 
establishments if Croatian requirements are met (excep tions currently exist only for heat-treated milk 
from Bosnia and Herzegovina, FYR of Macedonia, a nd Serbia).  Croatia has concluded bilateral 
veterinary agreements with Bosnia and He rzegovina, FYR of Macedonia, and Serbia on, inter alia , 
                                                      
79 The Directorate for Food Safety and Quality has dr afted an Ordinance on the rapid alert system for 
food and feed on establishment, organisation and management of rapid alert system for food and feed at the 
national level (OG 134/09).  The CRO RASFF system enables continuous communication and exchange of information between all bodies and institutions involv ed.  In addition, it involve s competent authorities for 
official controls, i.e. risk management an d institutions involved in risk assessment. 
80 According to the authorities, this is in line with Directive 97/78/EC. 
81 Act on Genetically Modified Organisms of 2005.  
82 In accordance with the Ordinance on  the monitoring of certain substan ces and residues thereof in live 
animals and animal products (OG 79/09).  According to the authorities, it is harmonized with EU Directive (No. 96/23/EC). 
83 Regulated by Order (OG 112/08).  According to the authorities, it is harmonized with EU Directive 
(No. 96/22/EC). 
84 WTO document WT/ACC/HRV/59, 29 June 2000. Croatia WT/TPR/S/227/Rev.1 
 Page 47 
 
 
imports, transit of animal products , and exchange of information.  The concept of regionalization 
(disease or pest-free zones) has not been introduced into Croatia's SPS regime.  
Table III.6 
Legislation on products subject to quality control, 2009  
Product description and relevant legislation 
Meat and Meat Products 
Ordinance on labelling of beef meat (OG 75/09) 
Ordinance on quality of beef carcases and half-carcases (OG 2/09, 68/09) 
Ordinance on meat products (OG 1/07) 
Ordinance on quality of pig carcases  and half-carcases (OG 2/09) 
Fish, Cray-Fish, Mussels, Sea-Urchins, Frogs, Turtles, Snails, and Related Products 
Ordinance on the quality of preserved tuna and bonito (OG 56/09) 
Ordinance on the quality of preserved sardines (OG 96/09) 
Milk, Dairy Products, and Pure Cultures 
Ordinance on quality of fresh raw milk (OG 102/00, 111/00, 74/08) 
Ordinance on milk and milk products (OG 20/09) Ordinance on edible caseins and caseinates (OG 80/07). 
Ordinance on partly of wholly dehydrated pr eserved milk for human consumption (OG 80/07) 
Ordinance on methods for the analysis and testing of he at-treated milk for direct human consumption (OG 133/07) 
Ordinance on cheese and cheese related products (OG 20/09) Ordinance on methods of sampling and analysis of edible caseins and caseinates (OG 70/09) 
Ordinance on methods of sampling and analysis of conden sed milk powder intended for human consumption (OG 112/09) 
Ice-Cream, Ice-Cream Products, and Frozen Desserts 
Ordinance on frozen deserts (OG 20/09) 
Fruit, Vegetables, Mushrooms and Related Products 
Ordinance on fruit juices and ce rtain similar products intended fo r human consumption (OG 20/09) 
Ordinance on jams, jellies, marmalades, preserves and sweetened chestnut purée (OG 76/06) 
Coffee, Coffee Products, and Products Made of Coffee Substitutes 
Ordinance on coffee, coffee substitutes and products made of coffee and coffee substitutes (OG 172/04) 
Common Salt and Brining Salt 
Ordinance on the basic requirements for salt intended for human consumption (OG 15/97) 
Grain, Baking Products, Pasta, and Deep Frozen Pasta 
The regulation of the quality of grain, baking pr oducts, pasta, and deep frozen pasta (OG 53/91) 
Biscuits and Biscuit-Related Products 
Ordinance on biscuits and biscuit -related products (OG 73/05, 69/08) 
Food Oils and Vegetable Fa ts, Margarine, Mayonnaise and Other Related Products 
Ordinance on maximum level of erucic ac id in oils and fats (OG 70/08, 86/08) 
Ordinance on spreadable fats (OG 89/08) 
Ordinance on the basic requirements for food oils and fats, ma rgarine and related products, ma yonnaise, sauce, dressing, salads  and other 
products from food oils and fats (OG 39/99, 34/02) 
Sugar and Related Products 
Ordinance on sugars and methods of analysis of sugars intended for human consumption (OG 39/09) 
Ordinance on methods for determining the quality of sugar bought by intervention repurchase (OG 39/09) 
Honey and Other Apiary Products 
Ordinance on honey (OG 93/09) 
Ordinance on the quality of unifloral honey (OG 122/09) 
Cocoa Products, Creams, Candies and Related Products 
Ordinance relating to cocoa a nd chocolate products (OG 73/05) 
Ordinance on chocolate-related products, cream products and candy products (OG 73/05, 69/08) 
Alcoholic Beverages 
Wine Act (OG 96/03) 
Ordinance on spirit drinks (OG 61/09) 
Ordinance on beer and beer with supplements (OG 42/05, 57/05, 69/08) 
Natural Mineral, natural spring and table waters 
Ordinance on natural mineral and natu ral spring waters (OG No. 57/09, 85/09) 
Ordinance on table waters (OG 92/09) 
 
Source : Information provided by the Croatian authorities. WT/TPR/S/227/Rev.1 Trade Policy Review 
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Table III.7 
Products subject to sanitary measures, 2009 
HS Product description Measure 
01 Live animals Veterinary regulations 
02 Meat and edible meat o ffal Veterinary regulations 
03 Fish and crustaceans, molluscs and other a quatic invertebrates Veterinary regulations 
04 Dairy products;  birds' eggs; natural honey;  ed ible products of animal origin n.e.s. or 
included Veterinary regulations 
05 Products of animal origin n.e.s. or included Veterinary regulations 
12 Oil seeds and oleaginous fruits miscellaneous  grains, seeds and fruit:  industrial or 
medicinal plants:  straw and fodder  Veterinary regulations 
15 Animal or vegetable fats and oils and their cleavage products;  prepared edible fats;  
animal or vegetable waxes Veterinary regulations 
16 Preparations of meat, of fish or of crustaceans, mollu scs or other aquatic invertebrates Veterinary regulations 
17 Sugars and sugar confectione ry Veterinary regulations 
19 Preparations of cereals, flour, starch or milk ; pastry cooks' products Veterinary regulations 
20 Preparations of vegetables, fruit,  nuts, or other parts of plants  
21 Miscellaneous edible prepara tions Veterinary regulations 
23 Residues and waste from the food industries;  prepared animal fodder Veterinary regulations 
28 Products of the chemical or allied  industries Veterinary regulations 
30 Pharmaceutical products Veterinary regulations 
31 Fertilizers Environment and veterinary 
regulations 
35 Albuminoidal substances;  modified starches ;  glues;  enzymes Veterinary regulations 
41 Raw hides and skins (other than fur sk ins) and leather Veterinary regulations 
42 Articles of leather;  saddler and harness;  travel goods, 
handbags and similar containers;  articles of animal gut (other than silkworm gut) Veterinary regulations 
43 Fur skins and artificial fur;  manufact ures thereof Veterinary regulations 
51 Wool, fine or coarse animal hair;  horsehair  yarn and woven fabric Veterinary regulations 
95 Toys, games and sports requisites;  parts and accessories thereof Veterinary regulations 
97 Works of art, collectors' pieces and antiques Veterinary regulations 
 
Source : Information provided by the Croatian authorities. 
77. Certain categories of imported plants and plant products are subject to mandatory 
phytosanitary inspection at the border, where phy tosanitary certificates are recognized according to 
the International Plant Protection Convention (IPPC ) standards.  In 2008, a plant passport was 
introduced to improve the internal movement of certa in categories of plants and plant products and to 
align this with EU legislation.85  Upon EU accession, plant passports issued in Croatia will be valid on 
the EU market and vice versa.  Croatia had bilate ral phytosanitary agreements to facilitate trade in 
plants/plant products with various recently acceded EU  member states;  due to their accession, these 
agreements no longer apply.  Croatia has, howev er, import bans on several groups of plants, plant 
products, and other regulated objects.86 
78. Accreditation of laboratories concerned with SPS measures is undertaken by the Croatian 
Accreditation Agency.  Croatia has approximately 48 laboratories under the purview of the Croatian 
Institute for Public Health, 8 of which have b een accredited.  The Croatian Veterinary Institute 
operates as a reference laboratory for the control of  food of animal origin and control of animal 
diseases.  For plant health, the analys is of pesticide residues is carried  out by the pesticide department 
                                                      
85 Ordinance on phytosanitary register and plant pa ssports (OG 54/07).  According to the authorities, 
this is harmonized with EC Directives (Nos. 92/90/EEC;  92/105/EEC;  and 93/50/EEC). 
86 Annex III of the Ordinance on measures against the introduction and spread of organisms harmful to 
plants, plant products and other regulated objects, and measures to control these organisms (OG 74/06).  According to the authorities, this is in lin e with Annexes of EU Directive 2000/29/EC. Croatia WT/TPR/S/227/Rev.1 
 Page 49 
 
 
of the Croatian Institute for Public Health (reference laboratory).87  Products are tested in the internal 
market and costs are covered by the state budget.  
79. Establishments dealing with food of animal  origin (including slaughterhouses, processing 
facilities, and animal feed factories) must be approve d or registered at the Veterinary Directorate, and 
are subject to veterinary inspections and controls by the Veterinary Inspections Directorate.  The 
adoption of the Food Act and the Veterinary Act has created preconditions for further alignment of 
Croatian legislation with the acquis  in the placing on the market of food and feed.  According to the 
authorities, the use of antibiotics in feed is aligned wi th EU rules.  An animal passport, issued by the 
Croatian Agriculture Agency is required for th e internal movement of bovine animals.  
80. Croatia is a member of the Codex Alimenta rius Commission, the World Organization for 
Animal Health (OIE), the World Health Organiza tion (WHO), and the International Plant Protection 
Convention (IPPC). 
(viii) Public procurement 
81. Public procurement fell from HRK 44.9 billion in  2007 (14.3% of GDP) to HRK 32.8 billion 
in 2008 (10.4% of GDP), mainly due to budgetary reductions.88  MELE is responsible for policy 
making, coordination, and implementation of the public procurement framework through the 
Directorate for Public Procurement System;  it replaced the Public Procurement Office in March 
2008.  Other institutions involved are the Ministry of Finance (concessions), the Agency for Public 
Private Partnership (implementation of Public-Pri vate Partnerships (PPP) projects), and the State 
Commission for the Supervision of Public Proc urement Procedures (independent review body).89 
82. Changes have been introduced recently to Croatia's legislative framework for public 
procurement in order to ali gn domestic provisions with the acquis  and the WTO Plurilateral 
Government Procurement Agreement (GPA ), to which Croatia is an observer.90  The legislative 
framework consists of the Public Procurement Act (OG 110/07 and 125/08), the Concessions Act (OG 
125/08);  the Act on Public Private Partnerships (OG 129/08), the Act on the State Commission for the Supervision of Public Procurement Procedures (OG 117/03), and related subor dinate legislation.  
In June 2008, Croatia adopted the comprehensiv e Strategy for the Development of the Public 
Procurement System, and the Action Plan for its implementation. 
83. The Public Procurement Act (PPA), which en tered into force on 1 January 2008, regulates 
public procurement of go ods, services, and works, including utilities (water, telecommunications, 
energy, and transport).  It applies to the central  government, local governments, public undertakings 
(contracting authorities), and utilities (contracting enti ties).  The regulation on public procurement for 
defence and security purposes has recently been adopted and published
91, while procurement by 
public entities abroad, such as embassies and consulat es will be regulated by secondary legislation to 
be adopted in 2010.  
84. Under the new PPA, the procedures to award contracts (public works, public goods, and 
public services) are:  (i) open procedures92;  (ii) restricted procedures93;  (iii) negotiated procedures 
                                                      
87 European Commission (2008a). 
88 MELE (2008b). 
89 European Commission (2008a). 
90 Croatia is yet to initiate accession procedures fo r membership in the GPA (WTO document GPA/95, 
9 December 2008). 
91 OG 14/10. 
92 In open procedures any interested economic operator may submit a tender. WT/TPR/S/227/Rev.1 Trade Policy Review 
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(with or without prior publication)94;  (iv) competitive dialogue95;  and (v) design contests.96  The 
contracting authorities may choose freely between open and restricted procedures.  However, the PPA provides for an exhaustive list of cases justifying use of the negotiated procedure with a prior 
publication of contract notice (e.g. in exceptiona l cases, when the nature of the purchase does not 
allow prior overall pricing), and without prior public ation of contract notice (e.g. when, for technical 
or artistic reasons, the contract may be awarded onl y to a particular operator).  Competitive dialogue 
is to be used when the contract is particular ly complex and cannot be awarded under the open or 
restricted procedures.  Contracting entities (utilities) may choose freely among open, restricted, or negotiated procedure with prior notice.  
85. Contracting authorities and entities must follow the procedures stipulated in the PPA.  For 
procurements of lesser values (procurement va lue, excluding VAT equal to or higher than 
HRK 300,000 for goods and services and HRK 500,000 for works), they may use open procedures, 
restricted procedures, negotiated procedures, desi gn contests, framework agreements and electronic 
auctions in accordance with the conditions laid dow n in the PPA.  Contracting authorities and entities 
may, but are not obliged to, apply the procedur es laid down in the PPA for procurements under 
HRK 70,000.  Contract notices for procurements valu ed at HRK 70,000 or above must be published in 
the Electronic Public Procurement Classifieds (EPPC) of the Official Gazette
97.  As of January 2010, 
at least one person involved in the preparation or  implementation of public procurement procedures 
for goods and services valued at HRK 300,000 a nd for works valued at HRK 500,000 must be 
certified as a public procurement specialist.  In  2008, the value of public procurement contracts 
published in the EPPC totalled HRK 22.2 billion (Table III.8).98 
86. The Concessions Act regulates general cond itions, rules, and award and termination 
procedures, for concessions awarded to domestic and foreign natural and legal persons.  Other 
regulations governing individual related issues in specific areas and activities are applied as lex 
specialis .99  The Concessions Register has been established within the Ministry of Finance and is fully 
operational. 
87. The Act on Public Private Partnerships, inter alia , regulates the implementation (proposing, 
approving and monitoring) of PPP projects;  the right s and obligations of pub lic and private partners 
in the implementation of contractual and institu tionalized PPP models;  and the competences of the 
                                                                                                                                                                     
93 In restricted procedures any economic operator ma y request to participate, and only those economic 
operators invited by the procuring authority may submit a tender. 
94 In negotiated procedures the procuring authorities consult the economic operato rs of their choice and 
negotiate the terms of contract with one or more of these. 
95 In competitive dialogue any economic operator may request to participate, and the procuring 
authority conducts a dialogue with the selected candidates, with the aim of developing one or more suitable 
alternatives capable of meeting requirements;  the chosen candidates are invited to tender. 
96 Design contests enable the acquisition (mainly in the fields of town and country planning, 
architecture and construction, engineering or data processing ) of a plan or design sel ected by a jury after being 
put out to competition with or without the award of prizes. 
97 After accession to the EU, Croatia's  contract notices for procurements  above EU thresholds will have 
to be pusblished in the EU Official Journal . 
98 For 2008, the value of public procurement (HRK 32.8 billion) comprised contracts published in the 
electronic classifieds (HRK 22.2 billion), contracts conc luded according to the old PPA (HRK 6.4 billion), and 
contracts published in the beginning of 2009 but which refe r to 2008 (HRK 4.2 b illion) (MELE, 2008b).  
99 According to the authorities, all lex specialis  (18 separate Acts) have been fully aligned with the 
umbrella Concessions Act and approved by the European Commission, thus creating a uniform concession 
award procedure in Croatia.  Additionally, legal protectio n in the award procedure is in accordance with the 
regulations governing public procurement. Croatia WT/TPR/S/227/Rev.1 
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Agency for Public Private Partnerships .  The Strategic Framework for the Development of Public-
Private Partnership was adopted in January 2009.100 
Table III.8 
Public procurement contracts by type of procedurea, 2008 
('000 HRK) 
 Services Works Supplies Total (%) 
Open 6,101,434 6,802,001 3,943,290 16,846,725 75.95 
Restricted 24,873 38,000 26,012 88,884 0.40 
Restricted accelerated 1,124 8,383 1,213 10,720 0.05 
Negotiated (with prior notice) 81,170 62,246 30,253 173,668 0.78 
Negotiated accelerated 13,373 12,737 2, 700 28,810 0.13 
Negotiated (without prior notice) 1,502,545 1,522,220 1,766,388 4,791,153 21.60 
Competitive dialogue  1,923 0 0 1,923 0.01 
Design contest 220,472 615 18,285 239,373 1.08 
Total 7,946,914 8,446,202 5,788,141 22,181,256 100.00 
 
a Published in the Electronic Public Procurement Classifieds. 
 
Source:  Information provided by the Croatian authorities.  
88. Under the Act on the State Commission for the Supervision of Public Procurement 
Procedures, the five members of the State Commissi on are appointed by the Parliament, to guarantee 
their independence.101  The State Commission, inter alia , decides on appeals procedures governed by 
the PPA, the Concessions Act and the Act on PPP.  The draft of the new Act on the State Commission for the Supervision of Public Procurement Pro cedures is expected to be adopted early 2010. 
89. According to the authorities, no price preferences are given to domestic bidders, and there are 
no thresholds for the participa tion of foreigners in tenders. 
90. While the revised legislative framework is a si gnificant step in the process of harmonization 
with EU rules, remaining legislation needs to be  adopted and administrativ e capacity needs to be 
further improved at all levels (especially regional and local) to promote competition, rational use of 
public finances, and deficit reduction.  The capac ity of the procuring entities to apply the public 
procurement legislation efficiently and transparently  needs to be improved, to reduce the potential for 
irregularities, including fraud and corruption.
102 
(ix) Local-content requirements 
91. The authorities indicate that Croatia maintain s no local-content requirements for incentive 
purposes. 
(x) Other measures 
92. Croatia has no agreements with foreign governme nts or enterprises designed to influence the 
quantity or value of goods a nd services exported to Croatia.  
                                                      
100 According to the authorities, legal protection in the PPP procedures has been instituted in 
accordance with the regulations govern ing public procurement, i.e. be fore the State Commission for the 
Supervision of Public Procurement Procedures. 
101 The State Commission is fina nced from the State budget. 
102 European Commission (2009). WT/TPR/S/227/Rev.1 Trade Policy Review 
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(2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
93. Similar registration and documentation require ments apply to exporters and importers 
(section (1)(i) above).   
(ii) Export taxes 
94. Croatia does not apply any export tariffs or taxes.103  Nonetheless, Article 34(2) of the 
Customs Act allows for export tariffs to be im posed, in exceptional cases, to protect exhaustible 
natural resources, or to ensure essential materials to  the domestic industry and to prevent shortages in 
domestic supply.104  
(iii) Export prohibitions, controls, and licensing 
95. No export prohibitions are in force, other than the embargos maintained in the context of UN 
Security Council Resolutions. 
96. Under Article 1 of the Regulation Specifying Goods Subject to Export and Import Licences 
(OG 6/09 and 73/09), some products are subject to export licensing for statistical and monitoring 
purposes, and to fulfil Croatia's obligations under certain treaties and international conventions.  
These include some fertilizers, military goods and no n-military lethal goods for commercial purposes, 
and substances that deplete the ozone layer (Table AIII.3).  Licences are issued by MELE, except for:  
(i) uranium or thorium ores and concentrates, and radioactive chemical elements and radioactive 
isotopes105, which are licensed by the State Institute of  Radiation Protection pursuant to the Non-
Ionizing Radiation Protection Act;  and (ii) cultural goods (e.g. paintings, engravings), licensed by the 
Ministry of Culture.  In addition, substances fo r production of narcotic drugs are licensed by the 
Ministry of Health and Social Welfare.106  Furthermore, export licences are required for cereals (for 
monitoring purposes) and are issued by MAFRD.  Th e licensing procedures for exporters are the same 
as for importers (section (2)(v) above).  In accordance with the Regulation on the E xport and Import 
Controls for Rough Diamonds, exports of rough di amonds are allowed only if accompanied by a 
Kimberley Process Certificate issued by MELE. 
97. Croatia has recently put into force a regulatory framework governing the control of exports of 
dual-use (military and civilian) goods and technologi es to align it with its international obligations 
and commitments including the EU acquis .  The framework comprises of the Act on Export of Dual-
Use Items (OG 100/04 and 84/08, applied as from 1 January 2005);  Regulation on the List of Dual-
Use Items (OG 184/04, 62/07, 57/08, and 63/09);  and Ordinance on application form for the issuance 
of export licence for dual-use items (OG 166/04 and 123/07).  The Customs Administration is 
responsible for enforcing these controls and the conformity assessment of the goods with the export 
licence;  MELE issues the licence and may inspect the items and documentation. 
                                                      
103 Croatian Customs online information.  View ed at:  http://www.car ina.hr/engindex.htm. 
104 WTO document WT/ACC/HRV/59, 29 June 2000. 
105 CN Codes 2612 and 2844. 
106 Article 6 of the Regulation Specifying Goods Subject to Export and Import Licences. Croatia WT/TPR/S/227/Rev.1 
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(iv) Export subsidies, finance, assistance, and promotion 
98. According to the authorities, Croatia does not provide export subsidies on industrial or 
agricultural products.107 
99. The Croatian Bank for Reconstr uction and Development (HBOR), a state-owned investment 
bank, which entered into operation in late 1992108, has among its main objectives:  increasing the 
volume of Croatian exports;  developing new expo rt markets; increasing the share of Croatian 
exporters in international trade;  diversifying ex ports of goods and services;  and supporting Croatian 
exporters, investors, and overseas contractors.  It  provides an export financing and guarantee system 
by:  granting loans (Table III.9) ;  insuring export transactions ag ainst political and commercial risks 
(Table III.10);  issuing export guarantees;  providing  letters of credit;  and giving business advice to 
exporters.  In 2008, HBOR's expor t financing and guarantee programmes totalled HRK 3,909 million, 
and provided financial support for around  6% of Croatia's total annual exports. 
Table III.9 
Key features of the export promotion programmes, 2009 
Scheme Eligibility Conditions 
Supplier credit  
 Exporters of Croatian goods, works 
or services who have concluded an 
export contract with a foreign buyerLoan amount:  
Up to 100% of exports for repayment up to 2 years;  up to 
85% of exports for repayment over 2 years; denominated in the export contract currency.  Repayment period:  
from 180 days to 10 yearsa 
Interest rate for borrowers:  Fixed interest rateb or Variable 
interest ratec 
Application fee:  up to 1% one-off charge on the committed 
loan  
Commitment fee:  up to 1% per year charged on the 
committed undisbursed loan 
Loans to foreign banks  
 Commercial banks abroad financing 
exports of Croatian goods and 
services and pursuant to the OECD Consensus Loan amount:  up to 100% of exports for repayment up to 
2 years;  up to 85% of exports for repayment over 2 years;  
denominated in the export contract currency Repayment period:  up to 10 years
d 
Interest rate for borrowers:  Fixed interest rateb or Variable 
interest ratec 
Application fee:  up to 1% one-off charged on the committed loan  
Commitment fee:  up to 1% per year charged on the 
committed undisbursed loan 
Buyer credit Foreign buyers with acceptable 
security or commercial bank of a 
buyer, with whom a legal entity with its headquarters in Croatia (exporter) 
has concluded an export contract Same as supplier credit 
Table III.9 (cont'd)
                                                      
107 Croatia notified the WTO Committee on Agriculture that no export subsidies were provided during 
2001-08 (WTO documents G/AG/N/HRV/1, 19 May 2005;  G/AG/N/HRV/4, 20 February 2007;  
G/AG/N/HRV/7, 6 May 2008;  and G/AG/N/HRV/8, 30 October 2009). 
108 HBOR was established on 12 June 1992 by the Act on the Croatian Credit Bank for Reconstruction.  
The new Act on the Croatian Bank for Reconstruction and Development was passed in December 2006.  The 
Government makes yearly contributions to HBOR's capita l. In addition, HBOR is also funded through bond 
issues and external sources (e.g. World Bank and EB RD).  See HBOR online information.  Viewed at:  
http://www.hbor.hr /Default.aspx?art=535&sec=1487. WT/TPR/S/227/Rev.1 Trade Policy Review 
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Scheme Eligibility Conditions 
Pre-export finance (pre- and post-
shipment) Companies, craftsmen, and 
cooperatives Loan amount:  not limitede;  loans are extended in HRK  
Repayment period:  up to one year from the loan availability date (six-monthly reports required)  
Interest rate for borrowers:  effective interest rates range from 5.06% to 14.46% per year
f 
Application fee:  up to 1% one-off charged on the committed 
loan  Commitment fee:  up to 0.25% per year charge on the 
committed undisbursed loan 
 
a Depending on the type of goods and/or serv ices exported.  Exceptionally up to 15 year s for financing hydro and thermoelectric  
power plants, wind energy, geothermal, solar and bio-energy, tidal  power plant, water supply and wastewater projects.  The firs t 
instalment is due 1, 3, 6 or 12 months after the loan repaymen t start date, depending on the sel ected manner of repayment and t he 
type of export transaction. 
b Currency Induced Credit Risk interest rate plus margin (ra nging from 0.2% to 2%, depending on the creditworthiness of the 
supplier, the buyer, the export transaction, th e importing country, and the repayment term). 
c LIBOR/EURIBOR plus margin (depending on the creditworthin ess of the supplier, the buyer, the export transaction, the 
importing country, and the repayment term). 
d Depending on the type of goods and/or services exported.  The first instalment is due 1, 3, 6 or 12 months after the loan 
repayment start date, depending on the selected manner of repayment and the type of export transaction. 
e Depending on the opinion of the commercial bank, the creditworth iness of the final borrower, the amount of necessary current 
 assets, the volume of export transactions and th e nature and quality of the offered collateral. 
f The interest rate charged to final borrowe rs is the base rate plus a margin that  depends on the credit rating of the final 
 borrower and the offered collateral. The base rate  is established by the Croatian Competition Agency. 
 
Source : Information provided by the Croatian authorities. 
Table III.10  
Key features of the export insurance programmes, 2009 
Programme Beneficiaries and coverage 
Short-term insurance Exporters of consumer goods or se rvices that have agreed a payment term with the 
foreign buyer for up to 360 days.  Maximum cover is 85%.  The insurance 
premium is generally charged each mont h on the amount of exported, invoiced, 
and reported value of goods and services, and paid monthly. 
Insurance of supplier's credit Croatian companies exportin g Croatian goods and services.  Insurance is provided 
when the buyer requests deferred payment of credit as precondition for the 
conclusion of the transaction.  This is usually the case in exports of capital goods, 
equipment of high value, construction works, etc.  The usual cover ranges 
between 80% and 90% of the transaction value, depending primarily on the 
political risk of the buyer's country.   
Insurance of buyer's credit Commercial banks that approve credits to a foreign buyer or a foreign buyer's banks.  Insurance is provided when the foreign buyer requests deferred payment 
or financial credit as precondition for the conclusion of the transaction.  This is usually the case in exports of capital goods, equipment of high value, construction 
works, etc.  The usual cover ranges be tween 80% and 95% of the transaction 
value, depending primarily on the political risk of the buyer's country.   
Investment insurance Croatian invest ors (legal entities registered in Cr oatia that have their registered 
office or residence in Croatia) may insure their investment abroad, provided that the recipient country considers the invest ment to be of Croatian origin.  The 
minimum insurance is for 3 years (5 year s in the case of a shareholder loan) and 
the maximum is 15 years, depending on the investment return period.  The 
maximum cover of an individual investment  is 90% of the insured amount.  Only 
political risks are covered. 
Pre-export financing insura nce Exporters of high quality products and with proven capability in the export of 
goods and services, facing lack of worki ng capital for the preparation of exports, 
in case no usual collateral instruments can be offered to creditors or in case the 
same are not sufficient according to the lo ans terms.  Insurance for up to 80% of 
the loan's principal and 80% of the cont racted interest.  The premium insurance 
rate varies depending on the duration of th e insurance;  calculated on the basis of 
the percentage of the insured amount. It is charged in a single, up-front payment. 
 
Source : WTO Secretariat, based on information provided by the Croatian authorities.  Croatia WT/TPR/S/227/Rev.1 
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100. HBOR issues four types of export guarantees, e ither independently or in cooperation with 
commercial banks:  tender guarantees to support e xporters participating in international tenders;  
performance guarantees for up to 20% of the value of exported equipment, machinery, special 
products and/or services or the value of investment  activities;  advance payment guarantees to enable 
exporters to collect advance payments;  and warra nty guarantees for up to 10% of the export contract 
value of equipment, machinery, special products and/ or services or the value of investment activities.  
HBOR charges a loan application fee of 0.25% or at  least HRK 500 to be paid before the guarantee is 
issued, and a fee in the guarantee validity period of 0.2% or at least HRK 500 to be paid quarterly in 
advance.109 
101. HBOR also participates, together with MELE a nd other institutions, in the implementation of 
the Croatian Export Offensive Strategy, which aims, inter alia , at increasing the number of exporting 
companies from around 11,000 to 13,800;  and changing the structure of Croatia's exports so as to quadruple value-added exports (Chapter II(i)).  Under the Strategy, the new Competitiveness 
Strengthening and Internationaliza tion Programme 2009-10 has been launched with the objective of 
promoting export-oriented companies and SME's, new product development and internationalization, 
and support in networking (cluster initiatives). 
102. VAT exemptions for exports are listed in Artic le 13 of the Amendment of the Value Added 
Tax Act (OG 87/09) and include:  the supply of goods  to authorized bodies, which export them within 
their humanitarian, charitable or educational activiti es outside of Croatia; the supply of goods, other 
than oil derivates, delivered or transported from Croa tia by travellers in the transport of passengers or 
by someone else acting on their behalf
110;  the supply of goods and services under diplomatic and 
consular arrangements, subject to the reciprocity principle;  and the supply of goods and services to 
international organizations recognized as such by Croatia and to members of those organizations 
within the limits and under the conditions stipulated  by the international conventions establishing such 
organizations or agreements on their headquarters. 
103. Under the Customs Act and the Istanbul Conve ntion on the Temporary Admission of Goods, 
goods temporarily imported into Croatia may be comp letely or partially exempt from customs duties 
and taxes.  Such goods must be intended for tempor ary use (not for consumption).  They may remain 
in the territory of Croatia only for a limited period and must be re-e xported in an unchanged 
condition.  The Customs Administration has author ized the Croatian Chamber of Economy to issue 
ATA Carnets and to act as guarantor.111 
(v) Free zones 
104. The Section for the Development of Free Zones (under MELE) is in charge of Croatia's 
14 free zones.112  There are around 300 companies established in the zones, with a wide range of 
                                                      
109 When the guarantee is issued together with a commercial bank, HBOR and the bank agree on the 
amount of both fees for each transaction.  To be eligible for such guarantees, the exporter should, inter alia , be 
operating for at least one year (HBOR online inform ation.  Viewed at:  http://www.hbor.hr/Default. 
aspx?art=793&sec=1588&dm=2).  
110 The exemption is applied solely under certain conditions, e.g. if a traveller's domicile or usual 
residence is not situated w ithin Croatia and if the to tal value of the supply, including VAT, exceeds HRK 740. 
111 The ATA Carnet is an international customs document that allows the holder to temporarily (up to 
one year) import goods without paying normally applicable  duties and taxes provided the goods are re-exported. 
112 The free zones are:  Krapinsko- zagorska Free Zone in Krapina;  Osijek Free Zone;  Free Zone 
Kukuljanovo;  Port of Rijeka Free Zone;  Free Zone Zagreb;  Port of Split Free Zone;  Port of Pula Free Zone;  
Splitsko Dalmatinska Free Zone in Split;  Port of Plo če Free Zone;  Free Zone Đuro Đaković in Slavonski Brod;  
Free Zone Varaždin;  Podunavska Free Zone in Vukova r;  Free Zone Ribnik;  and Business Park Bjelovar. WT/TPR/S/227/Rev.1 Trade Policy Review 
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activities, including high-technology investments, le ather products, and storage facilities.  Investment 
in free zones increased by HRK 1.9 billion from 2001 to 2005. 
105. The Free Zones Act (OG 44/96 and 85/08) and re levant Ordinance set out the framework for 
operations and practices in the zones113;  the framework is designed to promote foreign direct 
investment and joint-ventures in export-oriented enterprises, provide easy access to imports of raw 
materials and equipment on favourable terms, and increase employment.  Free zones also target 
regional development and employment creation.  They  must be established on a seaport, river port, 
along international roads or in other areas in whic h conditions are favourable.  A free zone may also 
be established on the basis of a concession granted by the Government.114  Only domestic legal 
entities may establish a zone;  and only domestic legal entities (domestic and foreign companies 
registered in Croatia) and natu ral persons can be zone users.115  Activities that may be carried out 
within a free zone include:  produc tion of goods, wholesale trade, services;  retail trade and banking or 
other financial operations are not allowed.116  Licences to operate free zones are valid for one year 
(renewable), while concessions are granted for 25 years (non-renewable).  
106. Financial incentives are available to free zone  companies.  These include exemption from 
payment of customs duties and taxes.  Under the Amendments to the Free Zone Act (OG 85/08), free 
zone users pay a profit tax rate ranging from 0-15% in stead of the 20% (regular profit tax rate).  Free 
zones users, who invested over HRK 1 million, prior to the Free Zones Act, and did not use the maximum approved subsidy are exempted from corporate income tax (CIT) until this is used, but not later than 12 December 2016.  Pre-Free Zones Act businesses pay CIT depending on the location of 
their business activity.
117  Goods may remain within a zone for an unlimited period, and profit transfer 
and foreign exchange transactions are not restrict ed.  Investors are free to construct their own 
premises, though zones have office space, workshops, or warehouses available for rental.  Sales into 
the domestic market are allowed without limita tion, subject to the foreign trade regime.118 
(vi) Other measures 
107. According to the authorities, Croatia does not participate in any arrangements designed to 
curb or control exports to third countries at the request of foreign governments/companies. 
(3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
108. Under the Investment Promotion Act (OG 138/06 ), various investment incentive measures are 
available foreign and domestic investors who invest  a minimum of €300,000 and create ten new jobs, 
on condition that the recipient maintains the invest ment and the new employment for a minimum of 
five years.  Prior to investment, a legal entity wishing to benefit from incentives must submit an 
                                                      
113 Act on the Amendments to the Free Zones Act (OG 85/08), and Ordinance on the method of 
calculation of realized investment and used investment aid and on free zone user tax relief eligibility 
(OG 122/08). 
114 The concession is granted on the basis of a public set of tenders or competitive bidding. 
115 Article 6 of the Act on the Amendments to the Free Zone Act (OG 85/08). 
116 Article 1 of the Act on the Amendments to the Free Zone Act (OG 85/08). 
117 Users of free zones in Northwest Croatia pay a CIT rate of 10% over 2008-10, 15% in 2011-13, and 
20% (the standard rate) as from 2014;  those in Cent ral and Eastern Croatia and the Adriatic coast pay 10% 
during 2008-13, 15% in 2014-16, and 20% as from 2017;  and those in the region and city of Vukovar are 
exempted from CIT over 2008-10, pay 5% in 2011-13, 15% during 2014-16, and 20% as from 2017. 
118 Sales into the domestic market are subject to Croatia's MFN imports regime. Croatia WT/TPR/S/227/Rev.1 
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application to MELE.  The incentive measures, which apply to investment projects in the 
manufacturing sector, technology and innovation cen tres, and strategic business support services119, 
comprise:  (a) tax benefits (for up to  ten years, with a reduced profit tax rate ranging from zero to 10% 
depending on amount of investment and minimum number of new employees)120;  (b) duty exemption 
(no duties for invested equipment under HS 84-90)121;  (c) monetary aid (non-refundable) for 
employment creation122;  (d) monetary aid (non-refundable) for training and re-training costs123;  (e) 
monetary aid (non-refundable) for projects on t echnology innovation centres, and strategic business 
support activities124;  and, (f) special incentives for large investment projects.125 
109. Investments in other areas also benefit from incentive measures:  (i) under the Scientific and 
Higher Education Act (OG 123/03, as amended), stat e subsidies and tax incentives ranging from 40% 
to 100% of eligible costs may be granted to research activities126;  (ii) under the Decree on the 
Regional Aid Map (OG 52/08), regional aid incentives ranging from 40% to 50% of eligible costs may be granted
127;  (iii) under the Hill and Mountain Areas Act (OG 12/02, as amended), agriculture 
or fisheries investors, permanent employing more th an five workers (the majority of which must be 
resident in the area) are subject to a profit tax rate of 75% of the regular profit tax amount128;  and 
(iv) under the Act on Reconstruction and Devel opment of the City of Vukovar (OG 44/01, as 
amended), agriculture or fisheries investors having more than five employees (the majority of which 
                                                      
119 The information in this section is based on Trade and Investment Promotion Agency (2008). 
120 Profit tax is charged at:  10% instead of 20% for investments of up to €1.5 million and employing at 
least ten new workers;  at 7% for investments between €1.5-4 million and at least 30 new workers;  at 3% for 
investments between €4-8 million and at least 50 new workers;  and at zero for investments over €8 million and at least 75 new employees.  
121 Except automobiles with a cylinder capacity exceeding 1,500 cm3.  Tariff preferences for 
investments under the Invest ment Promotion Act will cease to apply as from the day of Croatia's accession to 
the EU (Croatian Chamber of Economy, 2007). 
122 Aid depends on the official unemployment rate in the region:  if less than 10%, the maximum 
support is €1,500 per new job, plus €750 in case of technology and innovation centres or €375 for strategic business activities;  between 10-20%, the maximum aid is €2,000 per new job, plus €1,000 in case of technology 
and innovation centres or €500 for strategic business activities;  and over 20%, maximum aid is €3,000 per new 
job, plus €1,500 in case of technology and innovation centres or €750 for strategic business activities. 
123 Financial aid is:  up to 35% of eligible costs for special training, for large undertakings (more than 
250 employees) and 45% for SMEs;  and up to 60% for general training, for large undertakings and 80% for 
SMEs. 
124 For projects establishing technology and innovation centres or strategic business support activities 
increases in support of 50% or 25%, respectively, may be granted for the costs of creating new jobs;  and for 
projects aimed at establishing and developing technological and innovation centres, non-repayable monetary 
support may be granted for fixed assets, i.e. up to €500,000 (HRK equivalent) for high technology equipment. 
125 Projects of significant economic interest in regions with registered unemployment above 20% , with 
an investment in fixed assets of at least €15 million (HRK equivalent), and a minimum of 100 new jobs created 
receive non-refundable suppor t for up to 5% of eligible costs on asse ts (maximum €1 million), and up to 5% of 
eligible costs on infrastructure (maximum €500,000).  
126 Eligible costs of a research include:  employee sa laries and fees;  material costs, and depreciation 
costs, plant, and equipment.  Taxable persons liable to corporate income tax may benefit from additional tax 
deductions of 100% to 150% of eligible research project expenses. 
127 The Decree on the Regional Aid Map divides Croatia  into three statistical regions:  the Northwest 
region is eligible for 40% aid of eligible costs, and the Continental and Adriatic regions are eligible for 50% aid.  
The maximum aid also depends the si ze of the company:  large companie s may apply for the above-mentioned 
aid;  SMEs and medium-sized companies may r eceive 20% and 10% additi onal aid, respectively. 
128 Investors, other than in agriculture or fisheries, under the same conditions as stated above, are also 
eligible for this profit tax reduction duri ng 2008-10.  The incentives regard ing hill and mountain areas will be 
eliminated upon Croatia's accession to the EU. WT/TPR/S/227/Rev.1 Trade Policy Review 
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must be resident in the area or area of special concern or hill and mountain area) are exempted from 
profit tax payments.129  
110. Additional CIT exemptions or deduc tions apply to taxable persons that carry out an activity in 
an area of special national concern (except agriculture and fishing)130, permanently employing more 
than five workers (the majority of which must be resident in the area).131  Taxable persons that carry 
out an agriculture or fishing ac tivity, under the same conditions, may be exempted from the CIT or 
pay a rate ranging from 5% to 15%, until Croatia's accession to the EU. 
111. Croatia is also implementing its State Aid (In centive) Programme for Small and Medium Size 
Enterprises (SMEs) 2008-12, with the objectives of:  strengthening competitive ability;  equal 
regional development;  boosting quality in entreprene urial infrastructure;  lessening administrative 
obstacles132;  strengthening entrepreneurial climate w ithin society; and internet access end  
e-business".133  The programme's specific measures include :  Croatia's Export Offensive Strategy 
(section (2)(iv) above and Chapter II(1));  State Ai d (section (iii)(b) below);  and Financing SMEs 
through, inter alia , loans (micro credits) and subsidized interest rates.  The agency for the 
development of SMEs (HAMAG), established un der the Small Business Promotion Act in 2002 
(OG 29/02 as amended in 2007 (OG 63/07), and  financed under the general budget, participates in 
this programme along with MELE and various other in stitutions.  Croatia is a signatory of the EU 
Charter for Small Enterprises and is applying th e guidelines of the European Charter for Small 
Enterprises.134  
(ii) State trading, state-owned enterprises, and privatization 
112. Croatia has been implementing a major privati zation programme of state-owned enterprises 
(SOEs) since the early 1990s, as part of its transiti on into a market-oriented economy.  As a result, the 
private-sectors shares in output and in employment have risen to around 70% in each.  Nonetheless, 
some important SOEs still run losses with conseque nt budgetary transfers.  Total subsidies are 
estimated at around 2.4% of GDP and a large share is still provided to loss-making SOEs.135  T o  
address this, Croatia aims to finish the privatiza tion process over the next few years so as to reduce 
the burden of SOEs on the nati onal budget and, ensure a market-based and competitive production 
system, while meeting the EU pre-accession economic criteria. 
                                                      
129 Investors, other than in agriculture or fisheries, under the same conditions, must pay profit tax as 
follows:  full exemption during 2008-10;  25% of the profit tax rate over 2011-13;  75% of the profit tax rate during 2014-16;  and 100% from 2017.  The incentives concerning the city of Vukovar will be eliminated upon 
Croatia's accession to the EU. 
130 A list of municipalities in each of the three natio nal concern groups is shown in the Act on Special 
State Concerns (OG 86/98);  they are under the responsibility of the Ministry of Regional Development, 
Forestry and Water Management.  In general, group I includes occupied territories close to the State borders 
during the war (at least 15 km), group II comprises occupied territories not close to the State borders, and group III consists of least developed areas.  
131 Taxable persons that carry out an activity in a group I area of national are exempted from CIT 
during 2008-10, will pay 5% in 2011-13, 15% in 2014-16, and 20% (standard rate) as from 2017;  those in 
group II pay 5% during 2008-10, 15% in 2011-13, and 20% as from 2014; and those in group III pay 15% 
during 2008-10, 17% over 2011-13, and 20% as from 2014. 
132 In 2008, SMEs generated 44% of Croatia's GDP and over 40% of total merchandise exports.  SMEs 
also represented around 40% the corp orate sector's total assets, 66.2% of total employment, and 65% of total 
investment (European Commission, 2009). 
133 In 2007, SMEs comprised 99.4% of all registered  enterprises, created 64 .7% of total employment, 
44% of GDP, and 40.5% of total exports (MELE, 2008a). 
134 European Commission (2008a). 
135 European Commission (2009). Croatia WT/TPR/S/227/Rev.1 
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113. Croatia's overall privatization process began w ith the adoption of the Act on Transformation 
of Socially-Owned Enterprises on 21 April 1991.  Ther eafter, privatization has also been carried out 
on the basis of the Companies Act; the Privatization Act (OG 21/96, 71/97 and 73/00);  and special acts to privatize large SOEs
136, including the electricity company Hrvatska elektroprivreda (HEP)137, 
and the oil and gas company Industrija nafte (INA).138  The Companies Act, inter alia , provides for 
national treatment regarding foreign investment participation in privatization, while the Privatization 
Act, inter alia , regulates the criteria and procedures for privatization of assets not privatized during 
the transformation process. 
114. The privatization process is carried out unde r the Croatian Privatization Fund (CPF) in 
accordance with the Privatization Act.  Initia lly, it involved transformating "socially-owned" 
enterprises into joint-stock or limited liability companies with defined ownership structures.  
Following Independence, ten large infrastructur e and utilities companies came under direct state 
ownership as "public enterprises", while the remaining socially-owned enterprises were privatized in a 
two-stage process.  First-stage privatization, orga nized by the CPF, sought wide participation by 
employees and the population at large, by offering preferential rights for share subscription at a 
substantial discount, and payment by instalment.139  The second phase was through mass voucher 
privatization, which sold 50% to 60% of the CPF residual portfolio.140 
115. The privatization process is now in its final ph ase, which includes the CPF portfolio and some 
large SOEs.  Privatization by CPF is mainly by pu blic tender and public aucti ons.  Public tender, is 
used for SOEs in which CPF holds significant ownershi p stake, and has five steps:  (i) CPF publicizes 
the public invitation to tender in the media, on its  website (www.hfp.hr), and through emails to 
embassies, chambers of commerce, interested parties and potential investors;  (ii) interested parties 
and qualified bidders may pur chase the tender documentation141;  (iii) bids must be received by CPF 
not later than the deadline speci fied in the tender notification142;  (iv) the CPF's senior executive team, 
management board and other government representativ es evaluate the bids based on pre-determined 
evaluation criteria143;  and (v) contract signing.  CPF sells shares of SOEs in which it holds minority 
                                                      
136 Article 13(5) of the Privatization Act indicates th at the privatization of certain SOEs (e.g. HEP, 
INA, Croatian Radio-TV (HRT), Croatian State Railways (HZ), Croatian Telecommunications (HT), Croatian 
State Roads (Hrvatske ceste), and Croatian State Forest s (Hrvatske sume) is to be done through special 
privatization acts. 
137 HEP has been partially privatized under  the HEP's Privatization Act (OG 32/02),. 
138 INA was privatized under Article 4 of INA's Priv atization Act (OG 32/02):  MOL from Hungary is 
the majority owner with a 47.15% stake, followed by the Government (44.83%), and private and institutional 
investors (8.02%).  
139 From April 1991 to October 1995, some 2,200 socially-owned enterprises (i.e. 75% of the 
enterprises initially subject to priva tization), accounting for more than 30% of  employment, were fully or almost 
entirely privatized.  During October 1995 and May 1999, a further 750 companies were privatized.  Shares in 
enterprises not privatized in the first stage were transf erred to the Croatian Pension Funds (one third) and the 
CPF (two thirds).  See WTO document WT/ACC/HRV/59, 29 June 2000. 
140 Vouchers were distributed to individuals affected by the war such as injured servicemen, war 
widows and their families, and other displaced persons and refugees.  The shares, represented by vouchers, were 
held in the portfolio of the CPF;  shares held by state pension funds were not included in the process.  In total, 
more than 500 companies were sold through voucher privatization between June and September 1998. 
141 Includes:  company profile, tender terms/conditions, bid instructions, application and guarantee 
forms, standard sales and share transfer contracts, evaluation criteria, and procedures for company visits. 
142 Public opening of the sealed bids is held on the deadline date for submission of bids.  A notary 
public records all bids.  Bidders or their authorized representatives may be present. 
143 In selecting the winning bidder, the key criterion is not just the offer price;  a purchaser's proposal to 
make further investments in the company, and to assume liabilities to employees and creditors are also considered.  The CPF must prov ide written notice to all bidding parties regarding the outcome. WT/TPR/S/227/Rev.1 Trade Policy Review 
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stakes through public auction on the Zagreb Stock Exchange (ZSE).  Foreign and local legal and 
natural persons may acquire share ow nership if they are represented by a registered member of the 
ZSE.  Prices range from HRK 1 for companies facing bankruptcy to the nominal value of the appraised equity for more successful SOEs.
144  Certain privatizations are monitored by the 
Competition Authority (section (iii) below). 
116. As of 15 March 2010, there were 782 SOEs (down from 2,825 in May 1999);  the State 
retains a majority holding in 81.  Equity cap ital amounted to HRK 59,527 billion, while CPF's 
portfolio was HRK 7,711 million and the state por tfolio HRK 16,048 million (Table III.11).  In 
addition to HEP and INA, other recent privatizations include the steel mills (Chapter IV(2)), and most 
shares of Croatian Telecom (HT).145  Some SOEs (e.g. shipyards, agri-industrial companies, and 
Croatian Railways (HZ)) have been or are being rest ructured as a precondition for their privatization.  
Nevertheless, privatization of CPF-held assets have recently made limited progress, and a number of 
tenders did not attract potential investors.  Ov erall, progress has been criticized as uneven and 
determined by institutional weakness.146  
Table III.11 
Croatian Privatization Fund CPF, 30 June 2009 
(HRK million) 
State ownership No. of SOEs Equi ty capital CPF State portfolio 
0-25% 632 40,999 2,349 2,777 
25-50% 69 2,898 478 951 
50-100% 81 15,631 4,885 12,320 
Total 782 59,527 7,711 16,048 
 
Source:  Information provided by the Croatian authorities.  
117. Under Croatia's Strategic Development Framew ork 2006-13, some of the main privatization 
goals are sales of SOEs through the capital mark et so as to increase their efficiency and 
competitiveness.  In addition, the Strategic De velopment Framework aims at boosting further 
competition and regulation in the economy, and co-ownership between the state and the private sector, including through public-private partne rship (PPP) projects (section (1)(viii) above).
147 
118. Croatia has notified the WTO that it has no state-trading enterprises as defined in GATT 
Article XVII  and the Understanding on the In terpretation of Article XVII.148  Nonetheless, some SOEs 
                                                      
144 Shares and business interests are paid exclusiv ely in cash.  Exceptionally, minority holdings can 
also be acquired through auction at the Varazdin Stock Exchange for certificates previously issued by the 
Government for completion of government works. 
145 In January 1999, Croatian Post and Telecomm unications (HPT) was split into Croatian Telecom 
(HT) and Croatian Post (HP).  The privatization of HT started in 1999 and continued in 2001, 2005 and 2008.  
Deutsche Telekom is the majority owner with a 51% stake, followed by private and institutional investors 
(38.4%), Croatian War Veterans' Fund (7%), and the Government (3.6%). 
146 European Commission (2009). 
147 In general, in PPP projects, the p ublic sector buys a service from the private sector that owns one or 
more elements of the project.  The most frequent ac tivities for PPP projects are:  building of infrastructure 
(roads, railways, airports), information technology, u tilities, and waste management.  Government of Croatia 
(2006). 
148 WTO document G/STR/N/11-12/HRV, 9 June 2009. Croatia WT/TPR/S/227/Rev.1 
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such as Hrvatske sume (Croatian State Forests), Hravatska posta (Croatian Post) and HZ, as well as 
recently privatized companies (e.g. HEP and INA) hold exclusive rights.149  
(iii) Competition policy, state aid, and price controls 
(a) Competition policy 
119. The Competition Act (OG 120/03)150, applied since 1 October 2003 and to apply until the new 
act enters into force on 1 October 2010, provides the main legal basis for competition in both goods 
and services; its main objective is to create an effi cient competitive environment in Croatia.  In order 
to further implement specific aspects of the Compe tition Act and further aligni ng Croatia's legislation 
on the EC acquis , secondary competition legislation has been adopted.151 
120. The Competition Act addresses three main issues:  (i)  restrictive agreements (Articles 9-14);  
(ii) abuse of dominant position (Articles 15-17);  and (iii) prohibited concentrations, such as mergers 
and acquisitions with dominant position, that distort the competitive structure of the market 
(Article 18-28).  All agreements that distort, rest rict or prevent competition are prohibited;  however, 
block or individual exemptions are made for those th at help to improve the production or distribution 
of goods and/or services;  promote technical or economic progress, while allowing consumers a fair 
share of the resulting benefit;  or of minor importance.152  Any abuse (by one or more undertakings) of 
a dominant position in the relevant market is prohi bited.  Dominant position is when an undertaking, 
due to its market power, can act highly independently  of its real or potential competitors, consumers, 
buyers or suppliers in the relevant market.153   
121. Any form of prevention or distortion of competiti on within Croatia or outside its territory falls 
within the scope of the Competition Act if such practices affect the Croatian market, including 
agreements between Croatian and foreign companies or even between foreign companies.  Except for 
certain types of merger of banks, insurance comp anies, and other financial institutions, for which 
special legislation applies, all other sectors are treated equally under the Competition Act.   
122. The Competition Act regulates the powers, du ties, and organization of the Croatian 
Competition Agency (CCA).  The CCA, established as an independent entity by a decision of 
Parliament in mid-1997, deals with the major areas of competitive restraints;  it registers and resolves 
cases of restrictive agreements, a buse of dominant position, and concentration (Table III.12).  The 
CCA has competence in all competition issues ex cept for those resulting from banking services and 
                                                      
149 At the time of Croatia's accession to the WTO, th e Commodity Reserves Directorate was considered 
as a state-trading entity, (WTO document WT/ACC/59, 29  June 2000).  However, since the adoption of the 
Strategic Commodity Reserves Act (OG 87/02), the Directorate cannot use commodity reserves to interfere in 
the domestic market (Chapter IV(1)(ii)). 
150 The Competition Act replaced the Act on th e Protection of Market  Competition of 1995. 
151 Regulation on the notification and assessment of  concentrations (OG 51/04);  Regulation on the 
definition of the relevant market (OG 51/04);  Regulation on agreements of minor importance (OG 51/04);  
Regulation on block exemption granted to certain categories of vertical agreements (OG 51/04);  Regulation on 
block exemption granted to certain categories of horizontal agreements (OG 158/04);  Regulation on block 
exemption granted to agreements on distribution and servicing of motor vehicles (OG 105/04);  Regulation on block exemption granted to certain categories of technology transfer agreements (OG 2/05);  and Regulation on 
block exemption granted to insurance agreements (OG 54/05). 
152 Article 13(2). 
153 Under the Competition Act, an undertaking is presumed to be in a dominant position when it holds 
more than 40% of the market share in the relevant market;  when three or fewer undertakings hold more than 
60% of the common market share in the relevant market;  or when five or fewer undertakings hold more than 80% of the common market shar e in the relevant market. WT/TPR/S/227/Rev.1 Trade Policy Review 
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other credit institutions' services, which are under the responsibility of the Croatian National Bank 
(CNB).154  Under the Competition Act, merger control pr ovisions are also applicable to privatization 
transactions conducted by the State.  The CCA do es not monitor privatization process but it assesses 
mergers that resulted from privatization.155  Further, the CCA has a competition advocacy role;  it 
gives official opinions to the government on legislative proposals on competition issues.  At the 
multilateral level, the CCA participates in certa in activities of the ICN (International Competition 
Network), OECD, and UNCTAD.  It has also conc luded bilateral agreemen ts on cooperation with 
several EU member states, and countries in the region (e.g. Aust ria, Bosnia and Herzegovina, 
Bulgaria, Hungary, FYR of Macedonia, and Romani a).  Based on cooperation agreements, the CCA 
cooperates regularly with Croatia's various regul atory bodies, such as CNB, Financial Services 
Supervisory Agency (HANFA), Post and Electronic Communication Agency (HAKOM), and Croatian Energy Regulatory Agency (HERA). 
Table III.12 
Competition Agency registered and res olved administrative cases, 2004-08 
 2004 2005 2006 2007 2008 
Restrictive agreements registered 7 4 31 4 11 
Restrictive agreements resolved 24 5 22 5 11 
Abuse of dominant position registered 50 21 21 12 36 
Abuse of dominant position resolved 60 3 27 14 24 
Concentration cases registered 25 30 30 29 35 
Concentration cases resolved 42 26 28 28 32 
Total administrative cases registered 82 55 82 45 82 
Total administrative cases resolved 126 34 77 47 67 
 
Source:  Croatian Competition Agency (2007), Annual Report for 2007 , Zagreb;  and information provided by the Croatian 
 authorities.  
123. The managing body of the CCA is the Co mpetition Council, which has five members 
appointed by the Croatian Parliament (one  of whom is appointed as president).156  The CCA does not 
have the authority to impose fines for infringements of the Competition Act;  it is under the jurisdiction of the minor offence courts.  As a result, after adopting a decision, the CCA requests 
minor offence court to start minor offence proc eedings against the undert aking concerned and the 
responsible person of the undertaking.
157  From 1 October 2010, the CCA will have the competence to 
impose fines for the breach of competition rules. 
124. A new Competition Act (OG 79/09) adopted in  June 2009 is to be implemented from 
1 October 2010.  According to the EU , it is fully in line with the acquis .158  In addition to empowering 
                                                      
154 Article 71 paragraph 1 of the Credit Institu tions Act (OG 117/08).  The CNB applies the 
Competition Act and other relevant competition rules, and is obliged to request the expert opinion of the CCA.  In addition, the CNB assesses all the mergers in that sector, regardless of  the amount of the turnover of the 
participants of the concentrations.  Following the recommendation of the European Commission, the banking 
and financial subsector will also come under competence of the CCA, bu t only after the accession of Croatia to 
the EU (Article 374 of the Credit Institutions Act). 
155 Concentrations with the buyer chosen in the pub lic bid are assessed according to the provisions of 
the Competition Act, like any other concentration, but only if the thresholds from Article 22, paragraph 4 of the 
Competition Act are met. 
156 The Competition Council is appointed for a five-year term and is empowered to make legally 
binding decisions addressed to businesses. 
157 An efficient system for imposing fines to allow CAA to have a deterrent effect  but also leniency and 
judicial control have not been remedied.  European Commission (2008a). 
158 European Commission (2009). Croatia WT/TPR/S/227/Rev.1 
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the CCA to impose fines159, other changes introduced in the new Act include:  the obligation for the 
CCA inform the parties to the proceedings, in writing,  of the preliminary established facts, in order to 
ensure the parties can express their views on all relevant facts;  entrusting the Administrative Court with review of the legality and the merits of the CCA's decision, and with the level of fines to be 
imposed by the CCA for infringements of competition rules
160;  abolishing individual exemption of 
agreements;  and introducing the right of the pa rties to propose commitments.  The new Competition 
Act also adopts a new test for as sessing concentrations (the signi ficant impediment of effective 
competition);  and regulates in more detail the issu es of dawn raids and searches of business and other 
premises, lands, and vehi cles conducted by the CCA. 
(b) State aid 
125. While Croatia has established a functioning market economy, the State continues to provide 
aid on economic or social grounds.  In  addition to direct costs to the budget, there are indirect costs as 
a result of forgone revenues, associated with, fo r example, tax exemptions.  The legislative 
framework, based on the State Aid Act (OG 140/05)161, and the Regulation on State Aid (OG 50/06), 
provides extensive powers to the CCA to assess and approve state aid ( ex-ante  control), as well as to 
monitor its use ( ex-post  control). 
126. Under Article 4(1) of the State Aid Act, stat e aid that distorts or threatens to distort 
competition by favouring certain beneficiaries, is pr ohibited insofar as it may affect the international 
commitments undertaken by Croatia.  However, under Ar ticle 4(2), state aid used to mitigate or make 
good the damage caused by natural disasters, excepti onal or war occurrences, is compatible with the 
Act, subject to prior authorization.  Moreover, under Article 4(3), state aid is allowed, subject to prior 
notification, to:  (a) promote the economic devel opment of areas where the standard of living is 
abnormally low or where there is serious undere mployment;  (b) promote culture and heritage 
conservation;  (c) promote the execution of impor tant international projects or remedy a serious 
disturbance in the economy;  (d) facilitate the deve lopment of certain economic activities or of certain 
economic areas;  and (e) legal and na tural persons that are, in accord ance with special rules, entrusted 
with the operation of services of general economic in terest or granted special rights to perform tasks 
assigned to them in the public interest, where the absence of such aid would obstruct their 
performance, and provided the aid covers excl usively compensation for the performance and 
implementation of the tasks concerned.  State aid is awarded through various instruments, such as 
grants;  tax exemptions, debt write-offs and reduc tion in social security contributions;  equity 
participation;  soft loans; and guarantees. 
127. As part of the requirements for EU accession, Croatia has established an independent system 
for monitoring state aid.  Based on notifications ma de by the institutions granting state aid, the CCA 
prepares an annual review of state aid covering all sectors, including agriculture and fisheries.162  The 
share of state aid to GDP rose from 2.5% in 2004 to 2.6% in 2008;  the highest share was allocated to 
                                                      
159 The new Competition Act will also include the possib ility to increase the fine in order to exceed the 
amount of gains improperly obtained as a result of the infr ingement.  The fine will be determined by applying 
certain criteria, such as seriousness and duration of infringement, and possible mitigating or aggravating 
circumstances, to be defined in more detailed in a new bylaw.  This is expected to strengthen the CCA's deterrent effect and enforcement policy, in particular against cartels.  It will also allow the CCA to apply a 
leniency programme, immunity from or reduction of fines for "whistle-blowers".   
160 The proceeding at the Court will be on an urgent basis. 
161 This replaced the State Aid Act of 2003. 
162 State aid for agriculture and fisheries is not covered by the State Aid Act of 2005 and does not fall 
under the jurisdiction of the CCA.  It is the responsibility of the Ministry of Agriculture, Fisheries and Rural Development. WT/TPR/S/227/Rev.1 Trade Policy Review 
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sector-specific aid (Table III.13), led by agriculture and fisheries (33.8% of total aid over 2004-08), 
shipbuilding (17.2%), and transport (13%).163  The authorities acknowledge the need to redirect aid 
towards horizontal and regional objectives given that  these categories of state aid affect competition 
less than sector-specific aid, a nd the need to raise competitiveness and achieve balanced regional 
development.164  In 2008, most state aid was in the form of  grants (78.7% of total state aid), followed 
by tax exemptions (11.7%), equity par ticipation (4.6%), and guarantees (4.5%).  
Table III.13 
State aid in Croatia, 2004-08 
(€ million) 
Category  2004 2005 2006 2007 2008 
Agriculture and fisheries 242.8 287.1 346.2 437.6 489.8 
Horizontal aid 153.6 112.6 127.0 112.1 164.9 
 R&D and innovation 16.5 17.5 19.0 21.9 29.0 
 Environmental protection and en ergy saving 0.0 0.9 3.3 2.8 5.1 
 SMEs 7.3 6.0 32.9 5.8 23.9 
 Training 17.4 10.1 13.8 24.9 9.6 
 Employment 63.4 36.2 45.7 49.1 91.6 
 Culture 5.4 10.1 12.3 7.6 5.7 
 Other objectives 43.5 31.8 0.0 0.0 0.0 
Sector- specific aid 224.9 245.2 550.3 578.0 484.3 
 Steel industry 3.9 2.2 0.1 26.8 0.0 
 Transport 56.4 56.1 190.5 191.8 201.1 
 Shipbuilding 70.7 86.9 300.3 314.4 82.3 
 Tourism 11.6 24.6 35.6 24.3 22.6 
 Brodcasting .. .. 130.9 137.8 152.3 
 Other sectors 3.4 7.6 22.7 5.5 18.6 
 Rescue and restructur ing 78.8 67.8 1.1 15.2 7.4 
Regional aid 19.5 20.2 38.5 65.5 56.0 
Aid at local level 45.8 18.2 18.1 26.6 24.7 
Total 686.6 683.4 1,080.2 1,219.7 1,219.8 
 
.. Not available. 
 
Source:  Information provided by the Croatian authorities.  
(c) Price controls 
128. In general, prices are determined freely wit hout any government interference.  Nonetheless, 
administrative price regulation is provided for in the Exceptional Measures of Price Controls Act of 
1997.  Direct price controls may be prescribed at the national and local levels to prevent negative 
effects of price changes for basic goods and services that  have a direct impact on the cost of living, or 
to prevent monopoly pricing (Article 4).  Price c ontrols may only be implemented for a limited period 
and if the negative effects cannot be eliminated by  other economic policy measures.  The Government 
                                                      
163 For methodological reasons de minimis  aid is not included in Table III.13.  It reached 
HRK 369.2  million in 2008 (HRK 225.1  million in 2006), most of which is in the form of grants at the central 
level. 
164 Horizontal aid is aimed at tack ling problems in any industry or region;  examples include aid for 
SMEs, R&D and innovation, environmental protection, risk capital measures, rescue and restructuring of firms in difficulty, employment, and training.  Aid to promote culture and heritage conservation may also be 
considered under horizontal aid although  it is not applicable in all industrie s and regions.  Regional aid and aid 
at local level aims to promote the development of less -favoured areas, mainly by supporting initial investment 
and job creation linked to the investment. Croatia WT/TPR/S/227/Rev.1 
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is also obliged to take appropriate  measures to eventually allow the el imination of the price controls.  
Imports and exports are excluded from price control measures.  During 2004-09, administrative prices 
accounted for around 23% of the consumer price index. 
129. Upon a proposal by MELE, the Government may im plement direct price controls by:  fixing 
maximum prices;  ordering price reductions to a certain level;  and requiring economic agents to 
report price changes in advance .  MELE may object to prior reported price changes within 15 days of 
the date they are reported, and request a company to  reconsider the proposed prices.  The Act provides 
for penalties of HRK 5,000-20,000 for companies changing prices against the objections of MELE, 
and the Government may order the prices be brought back  to the original level.  Regulations published 
in the Official Gazette  determine the goods and services subject to price controls.  
130. In 2009, only internal railway and official p assengers transport remained subject to price 
control by MELE at the national level, at the local  level, only public utilities (i.e. central heating, 
water supply, sewage and other sanitary services, di stribution of gas, and public transport) are under 
price control.165   
(iv) Protection of intellectual property rights 
(a) Overview 
131. As part of its efforts to harmonize with EU legislation on intellectual property rights (IPRs), 
and in accordance with its commitments under the WTO TRIPS Agreement, Croatia has a 
comprehensive and recently updated legal framework.  It comprises mainly the Copyright and Related 
Rights Act (OG 163/03) as amended166;  Patent Act (OG 173/03) as amended167;  Trademarks Act 
(OG 173/03) as amended168;  Industrial Design Ac t (OG 173/03) as amended169;  Act on Geographical 
Indications and Designations of Origin of Products and Services (OG 173/03) as amended170;  Act on 
the Protection of Plant Varieties (OG 131/97) as amended171;  Act on the Protection of Topographies 
of Semiconductor Products (OG 173/03) as amended172;  and Regulation implementing customs 
measures against goods suspected of infri nging certain IPRs (OG 50/06) as amended.173  In 2007, 
Croatia was removed from the United States Special  301 Priority Watch List in recognition of 
progress achieved in IPRs protection.174  Nonetheless, further efforts are required to strengthen the 
                                                      
165 Local administrative bodies are responsible for public utilities. 
166 Act on Amendments to the Copyright and Related Rights Act (OG 79/07). 
167 Acts on Amendments to the Patent Act (OG 87/05, 76/07, and 30/09);  and Ordinance on Patent Act 
(OG 117/07). 
168 Acts on Amendments to the Trademarks Act (OG 76/07 and 30/09);  and Ordinance on Trademarks 
(OG 117/07). 
169 Acts on Amendments to the Industrial Design Act (OG 76/07 and 30/09);  and Ordinance on 
Industrial Designs (OG 72/04) as amended (OG 117/07). 
170 Acts on Amendments to the Act on Geographical Indications and Designations of Origin of 
Products and Services (OG 186/03 and 76/07);  and Ordinance on Geographical Indications and Designations of 
Origin of Products and Services (OG 72/04) as amended (OG 117/07). 
171 Acts on Amendments to the Act on the Protection of Plant Varieties (OG 62/08 and 67/08). 
172 Acts on Amendments to the Act on the Protection of Topographies of Semiconductor Products 
(OG 76/07 and 30/09);  and Ordinance on Protection of Topographies of Semiconductor Products (OG 72/04) as 
amended (OG 117/07). 
173 Regulation on Amendments to the Regulation implementing customs measures against goods 
suspected of infringing certain intell ectual property rights (OG 82/2007). 
174 Embassy of the United States in Croatia online information.  Viewed at:  http://zagreb.usembassy. 
gov/press_releases/2007-press-releases/croatia-makes-p rogress-in-protecting-intellectual-property-rights/. WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 66 
 
 
administrative capacity for enforcement of IPRs.175  The Croatian intellectual property legislation was 
reviewed by the WTO TRIPS Council in June 2001.176 
132. Croatia is implementing its National Strategy fo r the Development of the Intellectual Property 
System 2005-10 with the aim, inter alia , of improving horizontal cooperation and coordination 
between the various institutions involved, and impr oving enforcement of IPRs.  The main institutions 
responsible for intellectual property matters are: the State Intellectual Property Office (SIPO) for 
industrial property rights and c opyright and neighbouring rights177, except for geographical 
indications and appellations of origin for agricultu ral products, foodstuff, and wine and spirits, which 
were transferred to the Ministry of Agriculture, Fisheries and Rural Development (MAFRD) in 2003;  
MAFRD (together with the Institute for Seed and Seedlings) also for the protection of new plant 
varieties;  the Customs Directorate in the Ministry of Finance, for border measures;  and the Ministry 
of Justice for enforcement before the courts. 
133. Current IPR legislation does not refer expressly to parallel imports.  Regarding patents, the 
patentee is granted the right to exclude others fro m importing the patented invention during the term 
of patent protection.  A similar prohibition concer ns trademarks:  no one is  allowed to use a mark 
without the consent of its owner.  A copyright holder enjoys the exclusive right of reproduction, 
distribution, broadcast, and communication to the public. 
134. The notion of exhaustion of rights conferred by  a copyright, patent, trademark, industrial 
design, and topography of semiconductor products, with  respect to the territory of the EU and the 
European Economic Area, will enter into force up on Croatia's accession to EU.  European-wide 
exhaustion rule applies mutatis mutandis  to related rights. 
135. Croatia's preferential trade agreements in clude provisions on IPRs (Chapter II(3)). 
136. Croatia has joined various IPR conve ntions and treaties (Table III.14). 
Table III.14 
Membership in internat ional agreements, conventions, and treaties, 2009 
Name Date of membership 
Convention establishing WIPO (1967) 8 October 1991 
Paris Convention on the Protection of Industrial Property (1883) 8 October 1991 
Berne Convention for the Protection of Litera ry and Artistic Works (1886) 8 October 1991 
Madrid Agreement Concerning the Internationa l Registration of Marks (1891) 8 October 1991 
Universal Copyright Convention (Geneva text, 1952) 8 October 1991 
Universal Copyright Convention (Paris text, 1971) 8 October 1991 
Nice Agreement concerning the International Cl assification of Goods and Services for the 
purpose of Registration of Marks (1957) 8 October 1991 
Rome Convention for the Protection of Performers, Producers of Phonograms  and 
Broadcasting Organizations (1961) 20 April 2000 
Locarno Agreement Establishing an Internati onal Classification for Industrial Designs 
(1968) 8 October 1991 
Table III.14 (cont'd)
                                                      
175 In particular, to raise awareness amongst the various IPR stakeholders (European Commission, 
2008a). 
176 WTO document IP/Q-Q4/HRV/1, 7 May 2003, contains the introductory statement made by 
Croatia, as well as the questions posed and answers given during the review. 
177 In March of 2008, oversight over SIPO was transferred from the Ministry of Science, Education and 
Sports to MELE.  SIPO represents Croatia in most international organizations in the field of IPRs. Croatia WT/TPR/S/227/Rev.1 
 Page 67 
 
 
Name Date of membership 
Patent Co-operation Treaty (1970) 1 July 1998 
Convention for the Protection of Producers of Phonograms against Unauthorized 
Duplication of their Phonograms (1971) 20 April 2000 
Strasbourg Agreement Concerning the Internationa l Patent Classificati on (1971) 25 November 2000 
Convention Relating to the Distribution of  Programme-Carrying Signals Transmitted by 
Satellite (1974) 8 October 1991 
WTO TRIPS Agreement (1995) 30 November 2000 
Budapest Treaty on the International Recogn ition of the Deposit of Micro-Organisms for 
the Purpose of Patent Procedure (1977) 25 February 2000 
International Convention for the Protection of New Varieties of Plants  (1961) 1 September 2001 
Protocol relating to Madrid Agreement (Interna tional Registration of Marks) (1989) 23 January 2004 
Hague Agreement (International Deposit of  Industrial Designs) (1925) 12 February 2004 
WIPO Copyright Treaty (1996) 26 April 2000 
WIPO Performances and Phonogram Treaty (1996) 26 April 2000 
Nairobi Treaty on the Protection of the Olympic Symbol (1981) 20 November 2004 
Agreement between Croatia and European Pate nt Organization on Cooperation in the Field 
of Patents (Cooperation and Extension Agreement, 2003) 1 April 2004 
Patent Law Treaty (2000) 28 April 2005 
Trademark Law Treaty (1994) 4 July 2006 
Vienna Agreement Establishing an Internationa l Classification of the Figurative Elements 
of Marks (1973) 9 May 2009 
European Patent Convention (1973) 1 January 2008 
Agreement on the Application of Article 65 of  the Convention on the Grant of European 
Patents (2000) 1 May 2008 
 
Source : Information provided by the Croatian authorities.  
(b) Copyright and related rights 
137. A copyright work is an original intellectual creation in the literary, scientific or artistic 
domain, having an individual character, irrespective of the manner and form of its expression, its type, 
value or purpose.  Croatia's legal framework on co pyright includes works of language (written works, 
oral works, computer programs), musical works, work s of visual arts, and photography.  Copyright is 
acquired by virtue of law and belongs to th e author.  It consists of economic rights178, moral, and other 
rights.  Computer programs and compilations of data are expressly spelled out as copyrighted 
works.179  There are some limitations and exceptions.180  In 2004, copyright-based industries 
                                                      
178 The economic component of copyright comprise s:  distribution, incl uding rental right;  
reproduction;  public performance;  and alteration.  The other rights of the authors are right to remuneration for 
private copying and public lending, as well as resale right. 
179 There are special provisions on the protection of computer programs and audiovisual works.  The 
economic rights in computer programs made under an employment contract belong to the employer, if the 
opposite is not agreed in the respective employment contract. 
180 These are:  temporary acts of reproduction that constitute an essential part of a technological 
process;  private copying;  ephemeral recordings;  exceptions in respect of public archives, libraries, educational 
and charitable institutions;  collections intended for teaching or sc ientific purposes;  disabled persons' use;  use 
in judicial, administrative,  and similar proceedings;  public perform ance for teaching purposes;  use for the 
information of the public;  quotations;  reproduction of works permanently situated in the public;  reproduction 
on posters and catalogues of exhibitions;  parodies and caricatures;  use for presentation and testing equipment;  
use of a database by a lawful user.   WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 68 
 
 
generated HKR 19.2 billion of gross output, i.e. 4.3%  of Croatia's GDP, and employed 4.7% of the 
total labour force.181 
138. Copyright protection is for the life of author plus 70 years.182  Croatia's copyright law also 
recognizes related rights, for example, of performers, phonogram producers, film producers, 
broadcasting organizations, publishers  of printed editions; and producers of databases.  Protection for 
these related rights is 50 years (from the date of performance/publication/broadcast, whichever 
occurred earlier), except for the rights of producers of  databases, which are protected for 15 years.  An 
author may exploit a copyright on an individual basis or through a collective management of rights. 
(c) Patents 
139. Croatia's Patent Act (as amended)  entered into force in 2004 and covers any invention, in all 
fields of technology, that is new, involves an inventive step and is susceptible of industrial 
application.  A patent must also be granted for an  invention that concerns:  a product consisting of or 
containing biological material;  a process by means of which the biological material is produced, processed or used;  a biological material isolated from its natural environment or produced by means 
of a technical process, even if it previously occurred in nature.
183  An invention that concerns plants or 
animals is considered patentable if the technical feasibility of the invention is not confined to a 
particular plant or animal variety and if the pr ocess for carrying out the invention is not essentially 
biological.  Excluded from patent protection, inter alia , are:  plant or animal varieties;  essentially 
biological processes for the production of plants or animals, with the exception of inventions that 
concern non-biological and microbiological pro cesses and products resulting from such processes;  
inventions contrary to pu blic order or morality;  and inventions on surgical or diagnostic methods or 
methods of treatment practiced directly on th e living human and animal body.  During 2004-08, 
3,547 patent applications were regi stered, of which 1,757 by Croatians. 
140. Patent protection is for 20 years from the filing date.184  Protection for a consensual patent is 
10 years from the filing date.185  Upon accession to the EU, provisions will enter into force allowing a 
                                                      
181 Copyright-based industries are classified in fo ur categories:  core (press and literature music, 
theatrical productions and operas, motion pictures and videos, radio and TV, photography, software and databases, visual and graphic arts, advertising services, and collective management associations);  
interdependent (e.g. TV sets, radios, CD and DVD play ers);  partial (e.g apparel, textile and footwear, 
jewellery);  and non-dedicated support industries (e.g telecommunications) (SIPO, 2007). 
182 Only the economic rights are transferable inter vivos .  The copyright as a whole is not transferable, 
except mortis causa . 
183 The biological material is any material containing genetic information and capable of reproducing 
itself or being reproduced in a biological system.  There are limitations to patentability of biotechnological 
inventions for ethical reasons, i.e. to reduce uncontrolled manipulation with plant and animal genes, and in 
particular, with human genes. 
184 After receipt of a patent appli cation, SIPO accords a filing date, on  the basis of which the applicant 
acquires the priority right (if two inventors filed an application for the same invention, the patent will be granted to the applicant who filed first, provided it meets all the necessary requirements).  After examination, a patent is 
published in SIPO's Official Gazette  18 months after its filing date, whereby it becomes available to the public.  
At the request of the applicant, the application may be published earlier, but not before three months from its filing date. 
185 A consensual patent is granted for an invention whose subject matter is patentable, but there is no 
substantive examination (instead there is an opposition pr ocedure).  At the request of  any interested person, a 
substantive examination can be conducted during the ten-year term of a consensual patent. Croatia WT/TPR/S/227/Rev.1 
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Supplementary Protection Certificate for a basic patent for a medicinal product intended for humans 
or animals or a plant protection product granted in Croatia.186 
141. The owner may exploit the patent either individu ally or in cooperation with other natural or 
legal persons;  rights may be transferred by assi gnment, licensing, or by testamentary succession.187  
Provision is made for granting compulsory licences, on the grounds of lack or insufficiency of 
exploitation of a patent, to any person filing a request , or to the Government, if the patent owner has 
not exploited the invention in the territory of Croa tia on reasonable terms, or has not made effective 
and serious preparations for its exploitation.188  
(d) Trade marks 
142. Croatia's legislative framework includes protection of a registered trademark189 for goods and 
services, guarantee marks, and collective marks; prov ided they are registered by SIPO or through the 
system of international registration (Madrid system).  Protection is for ten years from the date of application and can be renewed indefinitely at th e end of each consecutive ten-year period.  A trade 
mark application that complies with the ex amination procedure is published in SIPO's Official 
Gazette .  An opposition to a trade mark registration may be  filed within three months of publication of 
the application, by the holders of earlier trade marks and other earlier rights, if they consider that the 
registration would infringe their rights.  If there is no opposition, the application is registered.  A trade 
mark may be revoked, inter alia , if, within an uninterrupted period of five years, it has not been put to 
genuine use without justified reasons. 
(e) Industrial designs 
143. The Industrial Designs Act of 2003 (as amended), provides for the protection of designs that 
are new and have individual character.  A design is c onsidered new if, before the date of application, 
no identical design has been made available to the public, i.e. published following registration or otherwise, or exhibited, used in the course of tr ade or otherwise disclosed , except where these events 
could not reasonably have become known in the nor mal course of business to the circles specialized 
in the sector concerned, operating within Croatia.
190  A registered design is protected for five years 
                                                      
186 As in other accessions to the EU, a special transitional period is provided to Croatia.  The owner of a 
basic patent in Croatia, granted for a medicinal product intended for humans or animals or a plant protection 
product for which the authorization to place it on the mark et is granted by a compet ent authority in any EU 
member state after 1 January 2003, ma y also apply for a Supplementary Prot ection Certificate in Croatia within 
6 months of the Croatia's accession to the EU. 
187 Legal or natural persons not having a principal place of business, a domicile or a habitual residence 
in Croatia may undertake certain formalities before SIPO  by themselves, without a professional representative 
(e.g. file a patent application or other acts relating to the establishment of the filing date of a patent application, 
pay the administrative fees and procedural charges). 
188 A request for a compulsory licence can be filed after the expiry of four years from the filing date of 
a patent application, or three years from the date the patent was granted.  A compulsory licence cannot be 
granted if the patent owner provides legitimate reas ons to justify non-exploita tion or insufficiency of 
exploitation of the protected invention. 
189 Any sign capable of being represented graphically, particularly words, including personal names, 
designs, letters, numerals, the shape of goods or of their packaging, three-dimensional forms, colours, as well as 
the combinations of all the above indi cated signs, provided that such signs are capable of distinguishing the 
goods or services of one undertaking from goods or services of another undertaking. 
190 Industrial designs applications are no longer published and it is not possible to raise an opposition.  
SIPO only examines whether design applications that comply with the definition of a design are contrary to 
public policy or morality, or represent an improper use of  items protected by Article 6 of the Paris Convention.  
The design is registered thereafter and pub lished;  it can be invalidated upon request. WT/TPR/S/227/Rev.1 Trade Policy Review 
Page 70 
 
 
from the filing date, and protection may be renewed for periods of five years, to a maximum of 
25 years.  The Industrial Design Act does not provide protection for unregistered designs. 
(f) Geographical indications  
144. Croatia's legislation grants un limited protection on the registrati on of geographical indications 
for goods attached to a particular orig in or of special cultural importance.191  The Act on Geographical 
Indications and Designations of Origin of Produc ts and Services of 2003 (as amended), under the 
competence of SIPO, covers geographical indicati ons and designations of origin of almost all 
products and services.  The exceptions, under the responsibility of MAFRD, refer to special legislation on geographical indications:  (i) Act on designations of origin, geographical indications 
and the traditional speciality logo for agricultu ral products and foodstuffs (OG 84/08, 75/09 and 
107/09)
192, and Ordinance on designations of origin a nd geographical indications for agricultural 
products and foodstuffs (OG 88/09);  (ii) Act on Wine (OG 96/03), and Ordinance on Marking Wines 
with Geographical Indications (OG 7/05, 41/08) as amended;  and (iii) Ordinance on Spirit drinks 
(OG 61/09).  
(g) Other areas  
145. Under the Act on the Protection of Plant Vari eties of 1997 (as amended) and pertaining 
ordinances193, Croatia protects new varieties of plants for 25 years after registration;  and trees and 
vines for 30 years.  Breeders' rights can be obtained through an administrative procedure under the responsibility of MAFRD and the Institute for Seed and Seedlings.  Rights are granted on the basis of 
"novelty, distinctiveness, uniformity, stability and denomination".  Provision is made for granting 
compulsory licences for up to three years (renewable). 
146. Under the Act on the Protection of Topographi es of Semiconductor Products (as amended), 
protection is granted for ten years from filing date (or, if earlier, from first use).
194  
(h) Enforcement 
147. The Croatian authorities have focused their e fforts on improving the enforcement of IPR 
rights over the last few years, including throu gh workshops and seminars to educate businesses, 
consumers, judges, prosecutors, and other governme nt officers.  Nonetheless, further efforts are 
required to strengthen the overall awareness of in tellectual property rights in society at large.195  
During 2004-08, there were 610 IPR infringement cases (according to Customs Administration data):  85% were initiated upon the request of the right hold er.  In value terms, €6. 8 million of goods were 
seized by the Customs Administration over 2004-08, of which €5.1 million were destroyed 
                                                     
 
191 The right of use of a geographical indication is granted for ten years, and may be renewed 
indefinitely (excluding indications under the responsibility of MAFRD). 
192 Act on amendments to the Act of designations of origin, geographical indications and the traditional 
speciality logo for agricultural products and foodstuffs (OG 75/09) and Regulation on amendments to the Act of 
designations of origin, geographical indications and the traditional speciality  logo for agricultural products and 
foodstuffs (OG 107/09). 
193 Croatia's legislation is aligned with the Interna tional Union for the Protection of New Varieties of 
Plants (UPOV).  Croatia has also adopted the Regulation on the Accession to the International Convention for 
the Protection of New Varieties of Plants. 
194 Where a topography has not been commercially exploited anywhere  in the world, any exclusive 
rights in existence expire within 15 years from its  first fixation or encoding, unless an application for 
registration in due form has been filed within that period. 
195 European Commission (2009). Croatia WT/TPR/S/227/Rev.1 
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(Table III.15).  In the first quarter of 2009, 63 in fringement cases were reco rded, with a value of 
€5.4 million.196 
Table III.15 
Infringement of intellectual property, 2004-08 
(Number of cases and €) 
 2004  2005 2006 2007 2008 2004-08 
Destruction of goods 11 9 21 151 141 333 
Destruction of goods (€) 10,011 57,075 248,551 4,818,501 43,122 5,134,144 
Suspension of the procedure 1 32 21 116 76 246 
Suspension of the procedure (€) 37,589 286,555 160,625 997,315 410,976 1,482,084 
Cases pending before the courts 6 1 6 10 8 31 
Cases pending before the courts (€) 21,880 68 14,466 99,200 34,675 135,613 
Total 18 42 48 277 225 610 
Total (€) 69,479 343,697 423,642 5,915,022 488,773 6,751,841 
 
Source:  SIPO (2009), Statistical Report on the Infringements of Intell ectual Property Rights in  Croatia:  Annual report 
 2008 , Zagreb.  
148. Civil procedures allow right-owners to:  re quest establishment and termination of 
infringement;  request seizure and destruction of objects;  request compensation of damages, usual 
compensation, and unfair profits;  request publica tion of the judgment;  and request provision of 
information.  They are also entitled to provisional measures, comprising the termination or prevention of the infringement and preservation of evidence.
197  Under the penal law, sanctions for infringements 
of copyright and related rights consist of: imprisonm ent ranging from 6 months to five years, and/or 
fines.  A fine may not be less than 10 daily incomes, and not more than 500 daily incomes.198  Goods 
may also be seized during the customs procedure. 
149. The appeal procedures and related boards of appeal for industrial property rights were 
introduced in 2008.199  The boards of appeal are responsib le for deciding on appeals against the 
decisions issued by the SIPO in the first instance.  The administra tive decisions issued by the boards 
of Appeal in the second instance may be subject to  administrative disputes before the Administrative 
Court.  The average length of appeal procedures in 2009 was eight months.200  The average length of 
proceedings before the Administrative Court (fro m filing the suit to judgement) in 2008 was  
6-12 months.201 
 
                                                      
196 SIPO (2009). 
197 Provisional measures may be ordered without info rming the opposing party thereof, if the measure 
would not be effective or irreparable damage is likely to occur.  The possibility of taking the evidence in the 
course of the civil proceedings is also provided for. 
198 Daily income is determined accordin g to income or property or proper ty rights of the in fringer, or as 
an average daily income according to statistical data. 
199 Prior to this an administrative lawsuit could be initiated against an act of SIPO before the 
Administrative Court. 
200 Appeal procedure includes:  formal examination of  an appeal, examination to the grounds of appeal 
before the SIPO, decision-making procedure before the boards of appeal, and preparation of final decision. 
201 In 2008, 507 out of 863 cases were solved over 6 to 12 months, 5 cases during 1-2 years, and 
8 cases in 2-3 years (SIPO, 2009).