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[**Important legal notice**](http://europa.eu.int/eur-lex/lex/en/editorial/legal_notice.htm)

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# 52001PC0371(02)

**Proposal for a Council and Commission Decision concerning the conclusion of the stabilisation and association agreement between the european communities and their Member States, of the one part, and the Republic of Croatia, of the other part /\* COM/2001/0371 final - AVC 2001/0149 \*/** 
  
*Official Journal 332 E , 27/11/2001 P. 0002 - 0221*

  

Proposal for a COUNCIL AND COMMISSION DECISION concerning the conclusion of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Commission Communication of 26.05.1999 on the Stabilisation and Association Process with Bosnia and Herzegovina, Croatia, Federal Republic of Yugoslavia and former Yugoslav Republic of Macedonia and Albania [1], established a new framework for closer relations between the EU and these countries, to be developed through a progressive approach adapted to the specific situation of each country. This new context provides for a wide-ranging partnership, notably through a new category of agreements, the Stabilisation and Association Agreements (SAA).

[1] COM(1999) 235 of 26.05.1999.

The opening of negotiations for a SAA depends upon compliance by the specific country with the relevant political and economic conditions. The political developments in the Republic of Croatia, following Parliamentary and Presidential Elections in early 2000, marked a new beginning in bilateral relations and resulted in the adoption by the Commission on 24 May 2000 [2] of a positive report on the feasibility of negotiating a Stabilisation and Association Agreement with the Republic of Croatia. The report underlined the encouraging steps undertaken by the new Croatian Government towards compliance with the EU conditionality and assessed that the Republic of Croatia has the capacity ultimately to fulfil the obligations of a Stabilisation and Association Agreement. It therefore concluded that the conditions for the opening of negotiations for a Stabilisation and Association Agreement with the Republic of Croatia were met.

[2] COM(2000) 311 of 24.05.2000.

As a result, on 19 July 2000 the Commission adopted its recommendation for the opening of negotiations. The Council, in its conclusions of 20 November 2000, authorised the Commission to open negotiations for a Stabilisation and Association Agreement with the Republic of Croatia, on the basis of agreed negotiating directives.

The negotiations were opened by the Commission on 24 November 2000, in the margins of the Zagreb Summit. Following three official rounds of negotiations and several technical meetings, the negotiating process was concluded in Zagreb on 11 May. The Commission conducted all the negotiations in close consultation with the Special Committee created by the Council for this purpose, namely the COWEB. The Stabilisation and Association Agreement was therefore initialled by Commissioner Patten and the Croatian Chief negotiator, Mr. Mimica, on 14 May 2001.

The Stabilisation and Association Agreement initialled with Croatia is the second one, since a similar type of agreement has already been signed with the Former Yugoslav Republic of Macedonia. The output of the negotiations with Croatia takes fully into account the precedent framework while certain parts of the agreement are tailor-made for the individual situation of the Republic of Croatia.

It is to note that the Stabilisation and Association Agreement will be the first comprehensive contractual relation established between the European Communities and the Republic of Croatia. Negotiations for a Cooperation Agreement, as well as for a Transport Agreement, started in 1995 but were never concluded because of the "frozen" political relations between the EU and this country. At present, the bilateral relations have been developed as follows:

- The trade regime is regulated by the autonomous trade preferences, unilaterally granted by the Community to Croatia under Council Regulation No. 2007/2000 of 18 September 2000, as amended by Council Regulation 2563/2000 of 20 November 2000;

- A Textiles agreement, initialled on 8 November 2000 and signed on 17 May 2001, is applied since 1 January 2001;

- An EU/Croatia Consultative Task Force, set up in February 2000, has served as a forum for bilateral technical discussion, in the absence of any other formalised body.

The establishment of contractual relations with the Republic of Croatia in the form of a SAA, will provide for a wide-ranging co-operation and will take forward the process of its integration into European structures. The agreement focuses on the following elements:

- The establishment of a formalised framework for political dialogue with the Republic of Croatia, both a bilateral and regional level;

- Enhanced regional co-operation;

- The promotion of economic and trade relations with the perspective of establishing a free trade area covering goods and services after a transitional period of six years from the entry into force of the agreement;

- The regulation of movement of workers, freedom of establishment, supply of services, current payments and movement of capital;

- The commitment by the Republic of Croatia to progressively harmonise its legislation with that of the European Community, notably in key areas of the internal market;

- The establishment of wide-ranging relations covering all the fields of Community interest and including co-operation in the field of justice and home affairs;

- The complete liberalisation of road transit traffic across the Republic of Croatia and the Community as a whole and the development of the associated infrastructure, within a specific protocol on land transport which takes into account the absence of a pre-existing Transport agreement;

- The formalisation of Community financial and technical assistance to the Republic of Croatia as a support to the implementation of certain aspects of the agreement;

- The establishment of a specific institutional framework in the form of a Stabilisation and Association Council which supervises the implementation of the agreement, a Stabilisation and Association Committee and a Stabilisation and Association Parliamentary Committee.

After the entry into force of the Stabilisation and Association Agreement the more favourable trade concessions granted by Council Regulation 2007/2000 of 18 September 2000 (as amended by Council Regulation No. 2563/2000 of 20 November 2000) will continue to apply.

Having completed the negotiating process the Commission proposes now to the Council to approve the results of the negotiations and to engage the procedures aimed at the signature and the conclusion of this agreement. To this regard the Commission presents two proposals, which constitute the legal instruments for the signature and the conclusion of the Stabilisation and Association Agreement between the European Communities and their Member States, on the one part, and the Republic of Croatia, on the other part:

(i) Proposal for a Council Decision for the signature of the Agreement;

(ii) Proposal for a Council and Commission Decision for the conclusion of the Agreement.

The procedures for the signature and the conclusion of the Agreement are different for the three European Communities: (European Community, European Atomic Energy Community and European Coal and Steel Community):

a) as regards signature, Article 300.2, first indent, first sentence of the EC Treaty provides for a separate Council Decision concerning the signing of the Agreement on behalf of the European Community. Similar acts are not required under the ECSC and EAEC Treaties;

b) as regards the conclusion of the Agreement:

- The Council concludes the Agreement on behalf of the European Community, after having received the assent of the European Parliament, by virtue of Article 310 of the Treaty;

- The Council approves the Agreement on behalf of the European Atomic Energy Community by virtue of the second paragraph of Article 101 of the EAEC Treaty and the Agreement is then concluded by the Commission;

- The Commission concludes the Agreement on behalf of the European Coal and Steel Community, by virtue of Article 95 of the ECSC Treaty, with the unanimous assent of the Council and following consultation of the Consultative Committee.

In the light of the above, the Commission proposes:

- that the Council decide on the signature of the Stabilisation and Association Agreement between the European Communities and the Republic of Croatia on behalf of the European Community;

- that the Council conclude the Stabilisation and Association Agreement between the European Communities and the Republic of Croatia on behalf of the European Community and give its assent and approval for conclusion by ECSC and EURATOM.

Ratification by all Member States of the European Union is a prerequisite for the entry into force of the Agreement.

2001/0149 (AVC)

Proposal for a COUNCIL AND COMMISSION DECISION concerning the conclusion of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part

THE COUNCIL OF THE EUROPEAN UNION,

THE COMMISSION OF THE EUROPEAN COMMUNITIES

Having regard to the Treaty establishing the European Community, and in particular Article 310 in conjunction with Article 300, second paragraph, first indent, last sentence, and third paragraph, second indent thereof;

Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 95 thereof;

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular the second paragraph of Article 101 thereof

Having regard to the proposal from the Commission [3]

[3] OJ C ...

Having regard to the assent of the European Parliament [4];

[4] OJ C ...

After consultation of the Consultative Committee and with the assent of the Council pursuant to Article 95 of the Treaty establishing the European Coal and Steel Community;

Having regard to the approval of the Council granted pursuant to Article 101 of the Treaty establishing the European Atomic Energy Community;

Whereas

(1) The Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, has been signed on behalf of the European Community, in [...] on [........2001], subject to its possible conclusion at a later date, in accordance with the Council Decision no. .../.../CE of ... [5]

[5] OJ C ...

(2) The commercial provisions contained in this agreement are of an exceptional nature, connected with the policy implemented within the framework of the stabilisation and association process and will not constitute, for the European Union, any precedent in the commercial policy of the Community with regard to third countries other than those of the Western Balkans,

(3) This Agreement should be concluded;

HAVE DECIDED AS FOLLOWS:

Article 1

1. The Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, including Annexes and Protocols annexed thereto and the declarations attached to the Final Act are hereby approved on behalf of the European Community, the European Coal and Steel Community, and the European Atomic Energy Community.

2. The texts referred to in the first paragraph are attached to this Decision.

Article 2

1. The position to be taken by the Community within the Stabilisation and Association Council and within the Stabilisation and Association Committee shall be determined by the Council, on a proposal by the Commission, or, where appropriate, by the Commission, each in accordance with the corresponding provisions of the Treaties.

2. The President of the Council shall, in accordance with Article 111 of the Stabilisation and Association Agreement, preside over the Stabilisation and Association Council. A representative of the Commission shall preside over the Stabilisation and Association Committee, in accordance with the Rules of Procedure thereof.

3. The decision to publish the decisions of the Stabilisation and Association Council and the Stabilisation and Association Committee in the Official Journal of the European Communities shall be taken on a case-by-case basis by the Council and the Commission respectively.

Article 3

The President of the Council is hereby authorised to designate the persons empowered, on behalf of the European Community, to deposit the act of notification provided for in Article 127 of the Agreement. The President of the Commission shall deposit the said acts of notification on behalf of the European Coal and Steel Community and European Atomic Energy Community.

Done at Brussels,

For the Council For the Commission

The President The President

FINAL ACT

The plenipotentiaries of:

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting Parties to the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community, the Treaty establishing the European Atomic Energy Community, and the Treaty on European Union,

hereinafter referred to as 'the Member States', and of

the EUROPEAN COMMUNITY, the EUROPEAN COAL AND STEEL COMMUNITY and the EUROPEAN ATOMIC ENERGY COMMUNITY,

hereinafter referred to as 'the Community',

of the one part, and

the plenipotentiaries of the REPUBLIC OF CROATIA,

of the other part,

meeting in ... on...in the year two thousand and one for the signature of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia of the other part, hereinafter referred to as 'the Agreement';

have at the time of signature adopted the following texts:

the Agreement,

its Annexes I - VIII, namely:

Annex I (Art 18.2) Croatian Tariff concession for EC Industrial Products

Annex II (Art 18.3) Croatian Tariff concession for EC Industrial Products

Annex III(Art 27) : EC Definition of "Baby beef"

Annex IV a) (Art 27.3(a) Croatian Tariff concession for Agricultural products (duty-free for unlimited quantities at the date of entering into force of the Agreement)

Annex IV b) (Art 27.3(b) Croatian Tariff concession for Agricultural products (duty-free within quota at the entering into force of the Agreement)

Annex IV c) (Art 27.3(c) Croatian Tariff concession for Agricultural products (duty-free for unlimited quantities one year after entering into force of the Agreement)

Annex IV d) (Art. 27.3(d) Croatian Tariff concession for agricultural products (progressive elimination of MFN duties within tariff quotas)

Annex IV e) (Art. 27.3(e) Croatian Tariff concession for agricultural products (progressive reduction of MFN duties for unlimited quantities)

Annex IV f) (Art. 27.3(f) Croatian Tariff concession for agricultural products (progressive reduction of MFN duties within quotas)

Annex V a) Products referred to in Article 28.1

Annex V b): Products referred to in Article 28.2

Annex VI (Art. 50): Establishment:" Financial services"

Annex VII (Art. 60.2) Acquisition of real property - List of exceptions

Annex VIII (Art 71): Intellectual, Industrial Commercial property rights: List of Conventions

and the following Protocols:

Protocol 1 On Textile and clothing products

Protocol 2 On Steel Products

Protocol 3 On trade between Croatia and the Community in Processed agricultural products

Protocol 4 Concerning the definition of the concept of "originating products"

and methods of administrative co-operation

Protocol 5 On mutual administrative assistance in customs matters

Protocol 6 On Land Transport

The plenipotentiaries of the Member States and of the Community and the plenipotentiaries of the Republic of Croatia have also adopted the following declarations attached to this Final Act:

Joint Declaration concerning Articles 21 and 29 of the Agreement

Joint Declaration concerning Article 41 of the Agreement

Joint Declaration concerning Article 45 of the Agreement

Joint Declaration concerning Article 46 of the Agreement

Joint Declaration concerning Article 58 of the Agreement

Joint Declaration concerning Article 60 of the Agreement

Joint Declaration concerning Article 71 of the Agreement

Joint Declaration concerning Article 120 of the Agreement

Joint Declaration concerning the Principality of Andorra

Joint Declaration concerning the Republic of San Marino

The plenipotentiaries of the Republic of Croatia have taken note of the Unilateral declaration by the Community and its member States concerning Article 30 of the Agreement, annexed to this Final Act:

Done at Brussels,

For the Council

The President

ANNEX

STABILISATION AND ASSOCIATION AGREEMENT

between the European Communities and their Member States and the Republic of Croatia

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, Contracting Parties to the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community, the Treaty establishing the European Atomic Energy Community, and the Treaty on European Union, hereinafter referred to as "Member States", and

THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY,

hereinafter referred to as the "Community",

of the one part, and

THE REPUBLIC OF CROATIA, hereinafter referred to as "Croatia",

of the other part,

Considering the strong links between the Parties and the values that they share, their desire to strengthen those links and establish a close and lasting relationship based on reciprocity and mutual interest, which should allow Croatia to further strengthen and extend the relations with the Community.

Considering the importance of this Agreement, in the framework of the Stabilisation and Association process with the countries of south-eastern Europe, in the establishment and consolidation of a stable European order based on co-operation, of which the European Union is a mainstay, as well as in the framework of the Stability Pact.

Considering the commitment of the Parties to contribute by all means to the political, economic and institutional stabilisation in Croatia as well as in the region, through the development of civic society and democratisation, institution building and public administration reform, enhanced trade and economic co-operation, wide-ranging co-operation, including in justice and home affairs, and the strengthening of national and regional security;

Considering the commitment of the Parties to increasing political and economic freedoms as the very basis of this agreement, as well as their commitment to respect human rights and the rule of law, including the rights of persons belonging to national minorities, and democratic principles through a multiParty system with free and fair elections;

Considering that Croatia reaffirms its commitment to the right of return for all refugees and displaced persons and to the protection of their related rights;

Considering the commitment of the Parties to the full implementation of all principles and provisions of the UN Charter, of the OSCE, notably those of the Helsinki Final Act, the concluding documents of the Madrid and Vienna Conferences, the Charter of Paris for a New Europe, and of the Stability Pact for south-eastern Europe, as well as to compliance with the obligations under the Dayton/Paris and Erdut agreements, so as to contribute to regional stability and co-operation among the countries of the region;

Considering the commitment of the Parties to the principles of free market economy and the readiness of the Community to contribute to the economic reforms in Croatia;

Considering the commitment of the Parties to free trade, in compliance with the rights and obligations arising out of the WTO;

Desirous of establishing regular political dialogue on bilateral and international issues of mutual interest, including regional aspects, taking into account the Common Foreign and Security Policy of the European Union;

Convinced that the Stabilisation and Association Agreement will create a new climate for economic relations between them and above all for the development of trade and investment, factors crucial to economic restructuring and modernisation;

Bearing in mind the commitment by Croatia to approximate its legislation in the relevant sectors to that of the Community;

Taking account of the Community's willingness to provide decisive support for the implementation of reform and reconstruction, and to use all available instruments of co-operation and technical, financial and economic assistance on a comprehensive indicative multi-annual basis to this endeavour;

Confirming that the provisions of this agreement that fall within the scope of Part III, Title IV of the Treaty establishing the European Community bind the United Kingdom and Ireland as separate Contracting Parties, and not as a part of the European Community, until the United Kingdom or Ireland (as the case may be) notifies Croatia that it has become bound as part of the European Community in accordance with the Protocol on the position of the United Kingdom and Ireland annexed to the Treaty on European Union and the Treaty establishing the European Community. The same applies to Denmark, in accordance with the protocol annexed to those Treaties on the position of Denmark;

Recalling the Zagreb Summit, which called for further consolidation of relations between the countries of the Stabilisation and Association Process and the European Union as well as enhanced regional co-operation;

Recalling the European Union's readiness to integrate to the fullest possible extent Croatia into the political and economic mainstream of Europe and its status as a potential candidate for EU membership on the basis of the Treaty on European Union and fulfilment of the criteria defined by the European Council in June 1993, subject to the successful implementation of this Agreement, notably regarding regional co-operation.

HAVE AGREED AS FOLLOWS

Article 1

1. An Association is hereby established between the Community and its Member States of the one part and Croatia of the other part.

2. The aims of this Association are:

- to provide an appropriate framework for political dialogue, allowing the development of close political relations between the Parties;

- to support the efforts of Croatia to develop its economic and international co-operation, also through the approximation of its legislation to that of the Community;

- to support the efforts of Croatia to complete the transition into a market economy, to promote harmonious economic relations and develop gradually a free trade area between the Community and Croatia;

- to foster regional co-operation in all the fields covered by this Agreement.

TITLE I

GENERAL PRINCIPLES

Article 2

Respect for the democratic principles and human rights as proclaimed in the Universal Declaration of Human Rights and as defined in the Helsinki Final Act and the Charter of Paris for a New Europe, respect for international law principles and the rule of law as well as the principles of market economy as reflected in the Document of the CSCE Bonn Conference on Economic Cooperation, shall form the basis of the domestic and external policies of the Parties and constitute essential elements of this Agreement.

Article 3

International and regional peace and stability and the development of good neighbourly relations are central to the Stabilisation and Association Process referred to in the conclusions of the Council of the European Union on 21 June 1999. The conclusion and the implementation of this Agreement come within the framework of the conclusions of the Council of the European Union of 29 April 1997, and are based on the individual merits of Croatia.Article 4

Croatia commits itself to continue and foster co-operation and good neighbourly relations with the other countries of the region including an appropriate level of mutual concessions concerning the movement of persons, goods, capital and services as well as the development of projects of common interest, notably those related to refugee return and combating organised crime, corruption, money laundering, illegal migration and trafficking. This commitment constitutes a key factor in the development of the relations and co-operation between the Parties and thus contributes to regional stability.

Article 5

1. The Association shall be implemented progressively and shall be fully realised at the latest within six years after the entry into force of this Agreement.

2. The Stabilisation and Association Council established under Article 110 shall regularly review the application of this Agreement and the accomplishment by Croatia of legal, administrative, institutional and economic reforms in the light of the preamble and in accordance with the general principles laid down in this Agreement.

Article 6

The Agreement shall be fully compatible with the relevant WTO provisions, in particular Article XXIV of the GATT 1994 and Article V of the GATS.

TITLE II

POLITICAL DIALOGUE

Article 7

Political dialogue between the Parties shall be established within the context of this Agreement. It shall accompany and consolidate the rapprochement between the European Union and Croatia and contribute to the establishment of close links of solidarity and new forms of co-operation between the Parties.

The political dialogue is intended to promote in particular:

- Croatia's full integration into the community of democratic nations and gradual rapprochement with the European Union;

- an increasing convergence of positions of the Parties on international issues, also through the exchange of information as appropriate, and, in particular, on those issues likely to have substantial effects on the Parties;

- regional co-operation and the development of good neighbourly relations;

- common views on security and stability in Europe, including co-operation in the areas covered by the Common Foreign and Security Policy of the European Union.

Article 8

1. Political dialogue shall take place within the Stabilisation and Association Council, which shall have the general responsibility for any matter which the Parties might wish to put to it.

2. At the request of the Parties, political dialogue may also take place in the following formats:

- meetings, where necessary, of senior officials representing Croatia, on the one hand, and the Presidency of the Council of the European Union and the Commission, on the other;

- taking full advantage of all diplomatic channels between the Parties, including appropriate contacts in third countries and within the United Nations, the OSCE, the Council of Europe and other international fora;

- any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.

Article 9

Political dialogue at parliamentary level shall take place within the framework of the Stabilisation and Association Parliamentary Committee established under Article 116.

Article 10

Political dialogue may take place within a multilateral framework, and as a regional dialogue including other countries of the region.

TITLE III

REGIONAL COOPERATION

Article 11

In conformity with its commitment to peace and stability, and to the development of good neighbourly relations, Croatia will actively promote regional co-operation. The Community will also support projects having a regional or cross-border dimension through its technical assistance programmes.

Whenever Croatia foresees to reinforce its co-operation with one of the countries mentioned in Articles 12 to 14 below, it shall inform and consult the Community and its Member States according to the provisions laid down in Title X.

Article 12

Co-operation with other countries

having signed a Stabilisation and Association Agreement

After the signature of this Agreement, Croatia shall start negotiations with the country or the countries which have already signed a Stabilisation and Association Agreement with a view to conclude bilateral conventions on regional co-operation, the aim of which will be to enhance the scope of co-operation between the countries concerned.

The main elements of these conventions will be:

- political dialogue;

- the establishment of a free trade area between the parties, consistent with relevant WTO provisions;

- mutual concessions concerning the movement of workers, establishment, supply of services, current payments and movement of capital as well as other policies related to movement of persons at an equivalent level to that of this Agreement;

- provisions on co-operation in other fields whether or not covered by this Agreement, and notably the field of Justice and Home Affairs.

These conventions will contain provisions for the creation of the necessary institutional mechanisms, as appropriate.

These conventions shall be concluded within two years after the entry into force of this Agreement. Readiness by Croatia to conclude such conventions will be a condition for the further development of the relations between Croatia and the European Union.

Article 13

Co-operation with other countries concerned by the Stabilisation and Association Process

Croatia shall engage in regional co-operation with the other countries concerned by the Stabilisation and Association Process in some or all the fields of co-operation covered by this Agreement, and notably those of common interest. Such co-operation should be compatible with the principles and objectives of this Agreement.

Article 14

Co-operation with countries candidate to EU accession

Croatia may foster its co-operation and conclude a convention on regional co-operation with any country candidate for EU accession in any of the fields of co-operation covered by this Agreement. Such convention should aim to gradually align bilateral relations between Croatia and this country to the relevant part of the relations between the European Community and its Member States and this country.

TITLE IV

FREE MOVEMENT OF GOODS

Article 15

1. The Community and Croatia shall gradually establish a free trade area over a period lasting a maximum of six years starting from the entry into force of this Agreement in accordance with the provisions of this Agreement and in conformity with those of the GATT 1994 and the WTO. In so doing they shall take into account the specific requirements laid down hereinafter.

2. The Combined Nomenclature of goods shall be applied to the classification of goods in trade between the two Parties.

3. For each product the basic duty to which the successive reductions set out in this Agreement are to be applied shall be the duty actually applied erga omnes on the day preceding the signature of this Agreement or the duty bound in the WTO for the year 2002 whichever is the lowest.

4. If, after the signature of this Agreement, any tariff reduction is applied on an erga omnes basis, in particular reductions resulting from the tariff negotiations in the WTO, such reduced duties shall replace the basic duty referred to in paragraph 3 as from the date when such reductions are applied.

5. The Community and Croatia shall communicate to each other their respective basic duties.

CHAPTER I

INDUSTRIAL PRODUCTS

Article 16

1. The provisions of this Chapter shall apply to products originating in the Community or in Croatia listed in Chapters 25 to 97 of the Combined Nomenclature, with the exception of the products listed in Annex I. I, (ii) of the Agreement on agriculture (GATT 1994).

2. The provisions of Articles 17 and 18 shall neither apply to textile products nor to steel products of Chapter 72 of the Combined Nomenclature, as specified in Articles 22 and 23.

3. Trade between the Parties in products covered by the Treaty establishing the European Atomic Energy Community shall be conducted in accordance with the provisions of that Treaty.

Article 17

1. Customs duties on imports into the Community of products originating in Croatia shall be abolished upon the entry into force of this Agreement.

2. Quantitative restrictions on imports into the Community and measures having equivalent effect shall be abolished on the date of entry into force of this Agreement with regard to products originating in Croatia.

Article 18

1. Customs duties on imports into Croatia of goods originating in the Community other than those listed in Annexes I and II shall be abolished upon the entry into force of this Agreement.

2. Customs duties on imports into Croatia of goods originating in the Community which are listed in Annex I shall be progressively reduced in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be reduced to 60% of the basic duty

- on 1 January 2003 each duty shall be reduced to 30% of the basic duty;

- on 1 January 2004 the remaining duties shall be abolished.

3. Customs duties on imports into Croatia of goods originating in the Community which are listed in Annex II shall be progressively reduced and eliminated in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be reduced to 70% of the basic duty;

- on 1 January 2003 each duty shall be reduced to 50% of the basic duty;

- on 1 January 2004 each duty shall be reduced to 40% of the basic duty;

- on 1 January 2005 each duty shall be reduced to 30% of the basic duty;

- on 1 January 2006 each duty shall be reduced to 15% of the basic duty;

- on 1 January 2007 the remaining duties shall be abolished.

4. Quantitative restrictions on imports into Croatia of goods originating in the Community and measures having equivalent effect shall be abolished upon the date of entry into force of this Agreement.Article 19

The Community and Croatia shall abolish upon the entry into force of this Agreement in trade between themselves any charges having an effect equivalent to customs duties on imports.

Article 20

1. The Community and Croatia shall abolish any customs duties on exports and charges having equivalent effect upon the entry into force of this Agreement.

2. The Community and Croatia shall abolish between themselves any quantitative restrictions on exports and measures having equivalent effect upon the entry into force of this Agreement.

Article 21

Croatia declares its readiness to reduce its customs duties in trade with the Community more rapidly than is provided for in Article 18 if its general economic situation and the situation of the economic sector concerned so permit.

The Stabilisation and Association Council shall make recommendations to this effect.

Article 22

Protocol 1 lays down the arrangements applicable to the textile products referred to therein.

Article 23

Protocol 2 lays down the arrangements applicable to steel products of Chapter 72 of the combined nomenclature.

CHAPTER II

AGRICULTURE AND FISHERIES

Article 24

Definition

1. The provisions of this Chapter shall apply to trade in agricultural and fishery products originating in the Community or in Croatia.

2. The term ''agricultural and fishery products" refers to the products listed in Chapters 1 to 24 of the Combined Nomenclature and the products listed in Annex I, I, (ii) of the Agreement on agriculture (GATT, 1994)

3. This definition includes fish and fisheries products covered by chapter 3, headings 1604 and 1605, and sub-headings 0511 91, 2301 20 and ex 1902 20 ("stuffed pasta containing more than 20% by weight of fish, crustaceans, molluscs or other aquatic invertebrates").

Article 25

Protocol 3 lays down the trade arrangements for processed agricultural products which are listed therein.

Article 26

1. On the date of entry into force of this Agreement, the Community shall abolish all quantitative restrictions and measures having equivalent effect, on imports of agricultural and fishery products originating in Croatia.

2. On the date of entry into force of this Agreement, Croatia shall abolish all quantitative restrictions and measures having equivalent effect, on imports of agricultural and fishery products originating in the Community.

Article 27

Agricultural products

1. From the date of entry into force of this Agreement, the Community shall abolish the customs duties and charges having equivalent effect, on imports of agricultural products originating in Croatia, other than those of heading Nos 0102, 0201, 0202 and 2204 of the Combined Nomenclature. For the products covered by Chapters 7 and 8 of the Combined Nomenclature, for which the Common Customs Tariff provides for the application of ad valorem customs duties and a specific customs duty, the elimination applies only to the ad valorem part of the duty.

2. From the date of entry into force of this Agreement, the Community shall fix the customs duties applicable to imports into the Community of «baby-beef» products defined in Annex III and originating in Croatia, at 20% of the ad valorem duty and 20% of the specific duty as laid down in the Common Customs Tariff of the European Communities, within the limit of an annual tariff quota of 9.400 tonnes expressed in carcass weight.

3. From the date of entry into force of this Agreement, Croatia shall

(a) abolish the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IV (a);

(b) abolish the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IV (b) within the limits of tariff quotas indicated for each product in that Annex. The tariff quotaswill be increased yearly by a quantity indicated for each product in that Annex.

From the first year after the date of entry into force of this Agreement, Croatia shall

(c) abolish the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IV (c).

From the date of entry into force of this Agreement, Croatia shall

(d) abolish progressively the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IV (d) within the limits of tariff quotas and in accordance with the timetable indicated for each product in that Annex.

(e) reduce progressively to 50% of the MFN duty the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IV (e) in accordance with the timetable indicated for each product in that Annex.

(f) reduce progressively to 50% of the MFN duty the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IV (f) within the limits of tariff quotas in accordance with the timetable indicated for each product in that Annex.

4. The trade arrangements to apply to wine and spirit products will be defined in a separate wine and spirit agreement.

Article 28

Fisheries products

1. From the entry into force of this Agreement the Community shall totally eliminate customs duties on fish and fisheries products, other than those listed in Annex V (a), originating in Croatia. Products listed in Annex V (a) shall be subject to the provisions laid down therein.

2. From the entry into force of this Agreement Croatia shall abolish all charges having an equivalent effect to a custom duty and totally eliminate customs duties on fish and fisheries products, other than those listed in Annex V (b), originating in the European Community. Products listed in Annex V (b) shall be subject to provisions laid down therein.

Article 29

Taking account of the volume of trade in agricultural and fishery products between the Parties, of their particular sensitivities, of the rules of the Community common policies and of the Croatian policies for agriculture and fisheries, of the role of agriculture and fisheries in Croatia's economy and of the consequences of the multilateral trade negotiations under the WTO, the Community and Croatia shall examine in the Stabilisation and Association Council, no later than 1 July 2006 product by product and on an orderly and appropriate reciprocal basis, the opportunities for granting each other further concessions with a view to implementing greater liberalisation of the trade in agricultural and fishery products.

Article 30

The provisions of this Chapter shall in no way affect the application, on a unilateral basis, of more favourable measures by one or the other Party.

Article 31

Notwithstanding other provisions of this Agreement, and in particular Article 38, given the particular sensitivity of the agricultural and fisheries markets, if imports of products originating in one of the two Parties, which are the subject of concessions granted pursuant to Article 25, 27 and 28, cause serious disturbance to the markets or to their domestic regulatory mechanisms, in the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such solution, the Party concerned may take the appropriate measures it deems necessary.

CHAPTER III

COMMON PROVISIONS

Article 32

The provisions of this Chapter shall apply to trade in all products between the Parties except where otherwise provided herein or in Protocols 1, 2 and 3.

Article 33

Standstill

1. From the date of entry into force of this Agreement, no new customs duties on imports or exports or charges having equivalent effect shall be introduced, nor shall those already applied be increased, in trade between the Community and Croatia.

2. From the date of entry into force of this Agreement, no new quantitative restriction on imports or exports or measure having equivalent effect shall be introduced, nor shall those existing be made more restrictive, in trade between the Community and Croatia.

3. Without prejudice to the concessions granted under Article 26, the provisions of paragraphs 1 and 2 of this Article shall not restrict in any way the pursuit of the respective agricultural policies of Croatia and the Community or the taking of any measures under those policies in so far as the import regime in the Annexes III, IV (a) (b) (c) (d) (e) (f) and V (a) (b) is not affected.

Article 34

Prohibition of fiscal discrimination

1. The Parties shall refrain from, and abolish where existing, any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party.

2. Products exported to the territory of one of the Parties may not benefit from repayment of internal indirect taxation in excess of the amount of indirect taxation imposed on them.

Article 35 The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.

Article 36

Customs unions, free trade areas, cross-border arrangements

1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade except in so far as they alter the trade arrangements provided for in this Agreement.

2. During the transitional periods specified in Article 18 this Agreement shall not affect the implementation of the specific preferential arrangements governing the movement of goods either laid down in frontier agreements previously concluded between one or more Member States and the Socialist Federal Republic of Yugoslavia and succeeded to by Croatia or resulting from the bilateral agreements specified in Title III concluded by Croatia in order to promote regional trade.

3. Consultations between the Parties shall take place within the Stabilisation and Association Council concerning the agreements described in paragraphs 1 and 2 of this Article and, where requested, on other major issues related to their respective trade policies towards third countries. In particular in the event of a third country acceding to the Community, such consultations shall take place so as to ensure that account is taken of the mutual interests of the Community and Croatia stated in this Agreement.

Article 37

Dumping

1. If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of Article VI of the GATT 1994, it may take appropriate measures against this practice in accordance with the Agreement on implementation of Article VI of the GATT 1994 and its own related internal legislation.

2. As regards paragraph 1 of this Article, the Stabilisation and Association Council shall be informed of the dumping case as soon as the authorities of the importing Party have initiated an investigation. When no end has been put to the dumping within the meaning of Article VI of the GATT or no other satisfactory solution has been reached within 30 days of the matter being referred to the Stabilisation and Association Council, the importing Party may adopt the appropriate measures.

Article 38

General safeguard clause

1. Where any product of one Party is being imported into the territory of the other Party in such increased quantities and under such conditions as to cause or threaten to cause:

- serious injury to the domestic industry of like or directly competitive products in the territory of the importing Party; or

- serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region of the importing Party,

the importing Party may take appropriate measures under the conditions and in accordance with the procedures laid down in this Article.

2. The Community and Croatia shall only apply safeguard measures between themselves in accordance with the provisions of this Agreement. Such measures shall not exceed what is necessary to remedy the difficulties which have arisen, and should normally consist of the suspension of the further reduction of any applicable rate of duty provided for under this Agreement for the product concerned or the increase of the rate of duty for that product. Such measures shall contain clear elements progressively leading to their elimination at the end of the set period, at the latest. Measures shall not be taken for a period exceeding one year. In very exceptional circumstances, measures may be taken up to a total maximum period of three years. No safeguard measure shall be applied to the import of a product that has previously been subject to such a measure for a period of, at least, three years since the expiry of the measure.

3. In the cases specified in this Article, before taking the measures provided for therein or, in the cases to which paragraph 4 (b) of this Article applies, as soon as possible, the Community or Croatia, as the case may be, shall supply the Stabilisation and Association Council with all relevant information, with a view to seeking a solution acceptable to the two Parties.

4. For the implementation of the above paragraphs the following provisions shall apply:

(a) The difficulties arising from the situation referred to in this Article shall be referred for examination to the Stabilisation and Association Council, which may take any decisions needed to put an end to such difficulties.

If the Stabilisation and Association Council or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within 30 days of the matter being referred to the Stabilisation and Association Council, the importing Party may adopt the appropriate measures to remedy the problem in accordance with this Article. In the selection of safeguard measures, priority must be given to those which least disturb the functioning of the arrangements established in this Agreement.

(b) Where exceptional and critical circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Party concerned may, in the situations specified in this Article, apply forth with precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.

The safeguard measures shall be notified immediately to the Stabilisation and Association Council and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit.

5. In the event of the Community or Croatia subjecting imports of products liable to give rise to the difficulties referred to in this Article to an administrative procedure having at its purpose the rapid provision of information on the trend of trade flows, it shall inform the other Party.

Article 39

Shortage clause

1. Where compliance with the provisions of this Title leads to:

(a) a critical shortage, or threat thereof, of foodstuffs or other products essential to the exporting Party; or

(b) re-export to a third country of a product against which the exporting Party maintains quantitative export restrictions, export duties or measures or charges having equivalent effect, and where the situations referred to above give rise, or are likely to give rise to major difficulties for the exporting Party

that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in this Article.

2. In the selection of measures, priority must be given to those which least disturb the functioning of the arrangements in this Agreement. Such measures shall not be applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination where the same conditions prevail, or a disguised restriction on trade and shall be eliminated when the conditions no longer justify their maintenance.

3. Before taking the measures provided for in paragraph 1 of this Article or, as soon as possible in cases to which paragraph 4 of this Article applies the Community or Croatia, as the case may be, shall supply the Stabilisation and Association Council with all relevant information, with a view to seeking a solution acceptable to the Parties. The Parties within the Stabilisation and Association Council may agree on any means needed to put an end to the difficulties. If no agreement is reached within 30 days of the matter being referred to the Stabilisation and Association Council, the exporting Party may apply measures under this Article on the exportation of the product concerned.

4. Where exceptional and critical circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or Croatia, whichever is concerned, may apply forth with the precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.

5. Any measures applied pursuant to this Article shall be immediately notified to the Stabilisation and Association Council and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable their elimination as soon as circumstances permit.

Article 40

State monopolies

Croatia shall progressively adjust any State monopolies of a commercial character so as to ensure that, by the end of the fourth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and Croatia. The Stabilisation and Association Council shall be informed about the measures adopted to attain this objective.

Article 41

Protocol 4 lays down the rules of origin for the application of tariff preferences provided for in this Agreement.

Article 42

Restrictions authorised

This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property, or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Article 43

Both parties agree to co-operate to reduce the potential for fraud in the application of the trade provisions of this Agreement.

Notwithstanding other provisions of this Agreement, and in particular Articles 31, 38 and 89 and Protocol 4, where one Party finds that there is sufficient evidence of fraud such as a significant increase in trade of products by one party to the other party, beyond the level reflecting economic conditions such as normal production and export capacities, or failure to provide administrative co-operation as required for the verification of evidence of origin by the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such solution, the Party concerned may take the appropriate measures it deems necessary. In the selection of the measures priority must be given to those which least disturb the functioning of the arrangements established in this Agreement.

Article 44

The application of this Agreement shall be without prejudice to the application of the provisions of Community law to the Canary Islands.

TITLE V

MOVEMENT OF WORKERS, ESTABLISHMENT, SUPPLY OF SERVICES, CAPITAL

CHAPTER I

MOVEMENT OF WORKERS

Article 45

1. Subject to the conditions and modalities applicable in each Member State:

- treatment accorded to workers who are Croatian nationals and who are legally employed in the territory of a Member State shall be free of any discrimination based on nationality, as regards working conditions, remuneration or dismissal, compared to its own nationals;

- the legally resident spouse and children of a worker legally employed in the territory of a Member State, with the exception of seasonal workers and of workers coming under bilateral agreements within the meaning of Article 46, unless otherwise provided by such agreements, shall have access to the labour market of that Member State, during the period of that worker's authorised stay of employment.

2. Croatia shall, subject to the conditions and modalities in that country, accord the treatment referred to in paragraph 1 to workers who are nationals of a Member State and are legally employed in its territory as well as to their spouse and children who are legally resident in the said country.

Article 46

1. Taking into account the labour market situation in the Member States, subject to their legislation and to compliance with the rules in force in the Member States in the area of mobility of workers:

- the existing facilities of access to employment for Croatian workers accorded by Member States under bilateral agreements should be preserved and if possible improved;

- the other Member States shall examine the possibility of concluding similar agreements.

2. The Stabilisation and Association Council shall examine the granting of other improvements, including facilities for access to professional training, in accordance with the rules and procedures in force in the Member States, and taking into account the labour market situation in the Member States and in the Community.

Article 47

1. Rules shall be laid down for the co-ordination of social security systems for workers with Croatian nationality, legally employed in the territory of a Member State, and for the members of their families legally resident there. To that effect, a decision of the Stabilisation and Association Council, which should not affect any rights or obligations arising from bilateral agreements where the latter provide for more favourable treatment, shall put the following provisions in place:

- all periods of insurance, employment or residence completed by such workers in the various Member States shall be added together for the purpose of pensions and annuities in respect of old age, invalidity and death and for the purpose of medical care for such workers and such family members;

- any pensions or annuities in respect of old age, death, industrial accident or occupational disease, or of invalidity resulting therefrom, with the exception of non-contributory benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor Member State or States;

- the workers in question shall receive family allowances for the members of their families as defined above;

2. Croatia shall accord to workers who are nationals of a Member State and legally employed in its territory, and to members of their families legally resident there, treatment similar to that specified in the second and third indents of paragraph 1.

CHAPTER II

ESTABLISHMENT

Article 48

For the purposes of this Agreement:

a) "Community company" or a "Croatian company" respectively shall mean a company set up in accordance with the laws of a Member State or of Croatia respectively and having its registered office or central administration or principal place of business in the territory of the Community or Croatia respectively.

However, should the company, set up in accordance with the laws of a Member State or of Croatia respectively, have only its registered office in the territory of the Community or of Croatia respectively, the company shall be considered a Community or a Croatian company respectively if its operations possess a real and continuous link with the economy of one of the Member States or of Croatia respectively;

b) "Subsidiary" of a company shall mean a company which is effectively controlled by the first company;

c) "Branch" of a company shall mean a place of business not having legal personality which has the appearance of permanency, such as the extension of a parent body, has a management and is materially equipped to negotiate business with third Parties so that the latter, although knowing that there will if necessary be a legal link with the parent body, the head office of which is abroad, do not have to deal directly with such parent body but may transact business at the place of business constituting the extension;

d) "Establishment" shall mean:

(i) as regards nationals, the right to take up economic activities as self-employed persons, and to set up undertakings, in particular companies, which they effectively control. Self-employment and business undertakings by nationals shall not extend to seeking or taking employment in the labour market or confer a right of access to the labour market of another party. The provisions of this Chapter do not apply to those who are not exclusively self-employed;

(ii) as regards Community or Croatian companies, the right to take up economic activities by means of the setting up of subsidiaries and branches in Croatia or in the Community respectively;

e) "Operations" shall mean the pursuit of economic activities;

f) "Economic activities" shall in principle include activities of an industrial, commercial and professional character and activities of craftsmen;

g) "Community national" and "Croatian national" shall mean respectively a natural person who is a national of one of the Member States or of Croatia ;

h) with regard to international maritime transport, including intermodal operations involving a sea leg, nationals of the Member States or of Croatia established outside the Community or Croatia respectively, and shipping companies established outside the Community or Croatia and controlled by nationals of a Member State or Croatian nationals respectively, shall also be beneficiaries of the provisions of this Chapter and Chapter III, if their vessels are registered in that Member State or in Croatia respectively, in accordance with their respective legislation.

i) "Financial services" shall mean those activities described in Annex VI. The Stabilisation and Association Council may extend or modify the scope of that Annex.

Article 49

1. Croatia shall facilitate the setting-up of operations on its territory by Community companies and nationals. To that end, it shall grant, upon entry into force of this Agreement:

(i) as regards the establishment of Community companies treatment no less favourable than that accorded to its own companies or to any third country company, whichever is the better, and;

(ii) as regards the operation of subsidiaries and branches of Community companies in Croatia, once established, treatment no less favourable than that accorded to its own companies and branches or to any subsidiary and branch of any third country company, whichever is the better.

2. The Parties shall not adopt any new regulations or measures which introduce discrimination as regards the establishment of Community or Croatian companies on their territory or in respect of their operation, once established, by comparison with their own companies.

3. The Community and its Member States shall grant, from the entry into force of this Agreement:

(i) as regards the establishment of Croatian companies, treatment no less favourable than that accorded by Member States to their own companies or to any company of any third country, whichever is the better;

(ii) as regards the operation of subsidiaries and branches of Croatian companies, established in their territory, treatment no less favourable than that accorded by Member States to their own companies and branches, or to any subsidiary and branch of any third country company, established in their territory, whichever is the better.

4. Four years after the entry into force of this Agreement, the Stabilisation and Association Council will establish the modalities to extend the above provisions to the establishment of nationals of both Parties to the Agreement to take up economic activities as self-employed persons.

5. Notwithstanding the provisions of this Article:

(a) Subsidiaries and branches of Community companies shall have, from the entry into force of this Agreement, the right to use and rent real property in Croatia;

(b) Subsidiaries of Community companies shall also have the right to acquire and enjoy ownership rights over real property as Croatian companies and as regards public goods/goods of common interest, the same rights as enjoyed by Croatian companies, where these rights are necessary for the conduct of the economic activities for which they are established excluding natural resources, agricultural land, forests and forestry land. Four years after the entry into force of this Agreement the Stabilisation and Association Council shall establish the modalities for extending rights under this paragraph to the excluded sectors.

(c) Four years after the entry into force of this Agreement, the Stabilisation and Association Council shall examine the possibility of extending the rights under (b), including rights in the excluded sectors, to branches of Community companies.Article 50

1. Subject to the provisions of Article 49, with the exception of financial services described in Annex VI, each Party may regulate the establishment and operation of companies and nationals on its territory, in so far as these regulations do not discriminate against companies and nationals of the other Party in comparison with its own companies and nationals.

2. In respect of financial services, notwithstanding any other provisions of this Agreement, a Party shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owned by a financial service supplier, or to ensure the integrity and stability of the financial system. Such measures shall not be used as a means of avoiding the Party's obligations under the Agreement.

3. Nothing in the Agreement shall be construed to require a Party to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.

Article 51

1. The provisions of this Chapter shall not apply to air transport services, inland waterways transport services and maritime cabotage services.

2. The Stabilisation and Association Council may make recommendations for improving establishment and operations in the areas covered by paragraph 1.

Article 52

1. The provisions of Articles 49 and 50 do not preclude the application by a Party of particular rules concerning the establishment and operation in its territory of branches of companies of another Party not incorporated in the territory of the first Party, which are justified by legal or technical differences between such branches as compared to branches of companies incorporated in its territory or, as regards financial services, for prudential reasons.

2. The difference in treatment shall not go beyond what is strictly necessary as a result of such legal or technical differences or, as regards financial services, for prudential reasons.

Article 53

In order to make it easier for Community nationals and Croatian nationals to take up and pursue regulated professional activities in Croatia and Community respectively, the Stabilisation and Association Council shall examine which steps are necessary for the mutual recognition of qualifications. It may take all necessary measures to that end.

Article 54

1. A Community company or a Croatian company established in the territory of Croatia or the Community respectively shall be entitled to employ, or have employed by one of its subsidiaries or branches, in accordance with the legislation in force in the host country of establishment, in the territory of Croatia and the Community respectively, employees who are nationals of the Member States and of Croatia respectively, provided that such employees are key personnel as defined in paragraph 2 and that they are employed exclusively by companies, subsidiaries or branches. The residence and work permits of such employees shall only cover the period of such employment.

2. Key personnel of the above mentioned companies, herein referred to as "organisations", are "intra-corporate transferees" as defined in c) of this paragraph in the following categories, provided that the organisation is a legal person and that the persons concerned have been employed by it or have been partners in it (other than as majority shareholders), for at least the year immediately preceding such movement:

(a) Persons working in a senior position with an organisation, who primarily direct the management of the establishment, receiving general supervision or direction principally from the board of directors or stockholders of the business or their equivalent including:

- directing the establishment of a department or sub-division of the establishment;

- supervising and controlling the work of other supervisory, professional or managerial employees;

- having the authority personally to recruit and dismiss or recommend recruiting, dismissing or other personnel actions;

(b) Persons working within an organisation who possess uncommon knowledge essential to the establishment's service, research equipment, techniques or management. The assessment of such knowledge may reflect, apart from knowledge specific to the establishment, a high level of qualification referring to a type of work or trade requiring specific technical knowledge, including membership of an accredited profession;

(c) An "intra-corporate transferee" is defined as a natural person working within an organisation in the territory of a Party, and being temporarily transferred in the context of pursuit of economic activities in the territory of the other Party; the organisation concerned must have its principal place of business in the territory of a Party and the transfer be to an establishment (branch, subsidiary) of that organisation, effectively pursuing like economic activities in the territory of the other Party.

3. The entry into and the temporary presence within the territory of the Community or Croatia of Croatian and Community nationals respectively shall be permitted, when these representatives of companies are persons working in a senior position, as defined in paragraph 2(a) above, within a company, and are responsible for the setting up of a Community subsidiary or branch of a Croatian company or of a Croatian subsidiary or branch of a Community company in a Member State or in Croatia respectively, when:

- those representatives are not engaged in making direct sales or supplying services, and

- the company has its principal place of business outside the Community or Croatia, respectively, and has no other representative, office, branch or subsidiary in that Member State or in Croatia respectively.

Article 55

During the first three years following the date of entry into force of this Agreement, Croatia may, on a transitional basis, introduce measures which derogate from the provisions of this Chapter as regards the establishment of Community companies and nationals of certain industries which:

- are undergoing restructuring, or are facing serious difficulties, particularly where these entail serious social problems in Croatia, or

- face the elimination or a drastic reduction of the total market share held by Croatian companies or nationals in a given sector or industry in Croatia, or

- are newly emerging industries in Croatia

Such measures:

(i) shall cease to apply at the latest five years after the entry into force of this Agreement.

(ii) shall be reasonable and necessary in order to remedy the situation, and

(iii) shall not introduce discrimination concerning the activities of Community companies or nationals already established in Croatia at the time of introduction of a given measure, by comparison with Croatian companies or nationals.

While devising and applying such measures, Croatia shall grant preferential treatment wherever possible to Community companies and nationals, and in no case treatment less favourable than that accorded to companies or nationals from any third country. Prior to the adoption of these measures, Croatia shall consult the Stabilisation and Association Council and shall not put them into effect before a one month period has elapsed following the notification to the Stabilisation and Association Council of the concrete measures to be introduced by Croatia, except where the threat of irreparable damage requires the taking of urgent measures, in which case Croatia shall consult the Stabilisation and Association Council immediately after their adoption.

Upon the expiry of the third year following the entry into force of this Agreement Croatia may introduce or maintain such measures only with the authorisation of the Stabilisation and Association Council and under conditions determined by the latter.

CHAPTER III

SUPPLY OF SERVICES

Article 56

1. The Parties undertake in accordance with the following provisions to take the necessary steps to allow progressively the supply of services by Community or Croatian companies or nationals which are established in a Party other than that of the person for whom the services are intended.

2. In step with the liberalisation process mentioned in paragraph 1, the Parties shall permit the temporary movement of natural persons providing the service or who are employed by the service provider as key personnel as defined in Article 54, including natural persons who are representatives of a Community or Croatian company or national and are seeking temporary entry for the purpose of negotiating for the sale of services or entering into agreements to sell services for that service provider, where those representatives will not be engaged in making direct sales to the general public or in supplying services themselves.

3. As from four years after the entry into force of this Agreement, the Stabilisation and Association Council shall take the measures necessary to implement progressively the provisions of paragraph 1. Account shall be taken of the progress achieved by the Parties in the approximation of their laws.

Article 57

1. The Parties shall not take any measures or actions which render the conditions for the supply of services by Community and Croatian nationals or companies which are established in a Party other than that of the person for whom the services are intended significantly more restrictive as compared to the situation existing on the day preceding the day of entry into force of the Agreement.

2. If one Party is of the view that measures introduced by the other Party since the entry into force of the Agreement result in a situation which is significantly more restrictive in respect of supply of services as compared with the situation existing at the date of entry into force of the Agreement, such first Party may request the other Party to enter into consultations.

Article 58

With regard to supply of transport services between the Community and Croatia, the following provisions shall apply:

1. With regard to inland transport, Protocol 6 lays down the rules applicable to the relationship between the Parties in order to ensure, particularly, unrestricted road transit traffic across Croatia and the Community as a whole, the effective application of the principle of non discrimination and progressive harmonisation of the Croatian transport legislation with that of the Community.

2. With regard to international maritime transport the Parties undertake to apply effectively the principle of unrestricted access to the market and traffic on a commercial basis.

(a) The above provision does not prejudice the rights and obligations under the United Nations Code of Conduct for Liner Conferences, as applied by one or the other Party to this Agreement. Non-conference liners will be free to operate in competition with a conference as long as they adhere to the principle of fair competition on a commercial basis;

(b) The Parties affirm their commitment to a freely competitive environment as being an essential feature of the dry and liquid bulk trade.

3. In applying the principles of paragraph 2, the Parties shall:

(a) not introduce cargo-sharing clauses in future bilateral agreements with third countries, other than in those exceptional circumstances where liner shipping companies from one or other Party to this Agreement would not otherwise have an effective opportunity to ply for trade to and from the third country concerned;

(b) prohibit cargo-sharing arrangements in future bilateral agreements concerning dry and liquid bulk trade;

(c) abolish, upon the entry into force of this Agreement, all unilateral measures and administrative, technical and other obstacles that could have restrictive or discriminatory effects on the free supply of services in international maritime transport.

(d) Each Party shall grant, inter alia, no less favourable treatment for the ships operated by nationals or companies of the other Party than that accorded to a Party's own ships with regard to access to ports open to international trade, the use of infrastructure and auxiliary maritime services of the ports, a well as related fees and charges, customs facilities and the assignment of berths and facilities for loading and unloading.

4. With a view to ensuring a co-ordinated development and progressive liberalisation of transport between the Parties adapted to their reciprocal commercial needs, the conditions of mutual market access in air transport shall be dealt with by special agreements to be negotiated between the Parties after the entry into force of this Agreement.

5. Prior to the conclusion of the agreement referred to in paragraph 4, the Parties shall not take any measures or actions which are more restrictive or discriminatory as compared with the situation existing prior to the entry into force of this Agreement.

6. Croatia shall adapt its legislation, including administrative, technical and other rules, to that of the Community existing at any time in the field of air and inland transport insofar as it serves liberalisation purposes and mutual access to markets of the Parties and facilitates the movement of passengers and of goods.

7. In step with the common progress in the achievement of the objectives of this Chapter, the Stabilisation and Association Council shall examine ways of creating the conditions necessary for improving freedom to provide air and inland transport services.

CHAPTER IV

CURRENT PAYMENTS AND MOVEMENT OF CAPITAL

Article 59

The Parties undertake to authorise, in freely convertible currency, in accordance with the provisions of Article VIII of the Articles of the Agreement of the International Monetary Fund, any payments and transfers on the current account of balance of payments between the Community and Croatia.

Article 60

1. With regard to transactions on the capital and financial account of balance of payments, from the entry into force of the Agreement, the Parties shall ensure the free movement of capital relating to direct investments made in companies formed in accordance with the laws of the host country and investments made in accordance with the provisions of Chapter II of Title V, and the liquidation or repatriation of these investments and of any profit stemming therefrom.

2. With regard to transactions on the capital and financial account of balance of payments, from the entry into force of this Agreement, the Parties shall ensure the free movement of capital relating to credits related to commercial transactions or to the provision of services in which a resident of one of the Parties is participating, and to financial loans and credits, with maturity longer than a year.

As from the entry into force of this Agreement, Croatia shall authorise, by making full and expedient use of its existing procedures, the acquisition of real estate in Croatia by nationals of Member States of the European Union, except for areas and matters listed in Annex VII. Within four years from the entry into force of this Agreement, Croatia shall progressively adjust its legislation concerning the acquisition of real estate in Croatia by nationals of the Member States of the European Union to ensure the same treatment as compared to Croatian nationals. At the end of the fourth year after the entry into force of this Agreement, the Stabilisation and Association Council shall examine the modalities for extending these rights to the areas and matters listed in Annex VII.

The Parties shall also ensure, from the fourth year after the entry into force of this Agreement, free movement of capital relating to portfolio investment and financial loans and credits with maturity shorter than a year.

3. Without prejudice to paragraph 1, the Parties shall not introduce any new restrictions on the movement of capital and current payments between residents of the Community and Croatia and shall not make the existing arrangements more restrictive.

4. Without prejudice to the provisions of Article 59 and of this Article, where, in exceptional circumstances, movements of capital between the Community and Croatia cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in the Community or Croatia, the Community and Croatia, respectively, may take safeguard measures with regard to movements of capital between the Community and Croatia for a period not exceeding six months if such measures are strictly necessary.

5. Nothing in the above provisions shall be taken to limit the rights of economic operators of the Parties from benefiting from any more favourable treatment that may be provided for in any existing bilateral or multilateral agreement involving Parties to this Agreement.

6. The Parties shall consult each other with a view to facilitating the movement of capital between the Community and Croatia in order to promote the objectives of this Agreement.

Article 61

1. During the first four years following the date of entry into force of this Agreement, the Parties shall take measures permitting the creation of the necessary conditions for the further gradual application of Community rules on the free movement of capital.

2. By the end of the fourth year following the date of entry into force of this Agreement, the Stabilisation and Association Council shall determine the modalities for full application of Community rules on the movement of capital.

CHAPTER V

GENERAL PROVISIONS

Article 62

1. The provisions of this Title shall be applied subject to limitations justified on grounds of public policy, public security or public health.

2. They shall not apply to activities that in the territory of either Party are connected, even occasionally, with the exercise of official authority.

Article 63

For the purpose of this Title, nothing in this Agreement shall prevent the Parties from applying their laws and regulations regarding entry and stay, employment, working conditions, establishment of natural persons and supply of services, provided that, in so doing, they do not apply them in such a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific provision of this Agreement. This provision shall be without prejudice to the application of Article 62.

Article 64

Companies which are controlled and exclusively owned jointly by Croatian companies or nationals and Community companies or nationals shall also be covered by the provisions of this Title.

Article 65

1. The Most-Favoured-Nation treatment granted in accordance with the provisions of this Title shall not apply to the tax advantages that the Parties are providing or will provide in the future on the basis of agreements designed to avoid double taxation or other tax arrangements.

2. None of the provisions of this Title shall be construed to prevent the adoption or enforcement by the Parties of any measure aimed at preventing the avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation and other tax arrangements or domestic fiscal legislation.

3. None of the provisions of this Title shall be construed to prevent Member States or Croatia in applying the relevant provisions of their fiscal legislation, from distinguishing between taxpayers who are not in identical situations, in particular as regards their place of residence.

Article 66

1. The Parties shall endeavour wherever possible to avoid the imposition of restrictive measures, including measures relating to imports, for balance of payments purposes. A Party adopting such measures shall present as soon as possible to the other Party a timetable for their removal.

2. Where one or more Member States or Croatia is in serious balance of payments difficulties, or under imminent threat thereof, the Community or Croatia, as the case may be, may, in accordance with the conditions established under the WTO Agreement, adopt restrictive measures, including measures relating to imports, which shall be of limited duration and may not go beyond what is strictly necessary to remedy the balance of payments situation. The Community or Croatia, as the case may be, shall inform the other Party forthwith.

3. Any restrictive measures shall not apply to transfers related to investment and in particular to the repatriation of amounts invested or reinvested or any kind of revenues stemming there from.

Article 67

The provisions of this Title shall be progressively adjusted, notably in the light of requirements arising from Article V of the General Agreement on Trade in Services (GATS).

Article 68

The provisions of this Agreement shall not prejudice the application by either Party of any measure necessary to prevent the circumvention of its measures concerning third-country access to its market through the provisions of this Agreement.

TITLE VI

APPROXIMATION OF LAWS, LAW ENFORCEMENT AND COMPETITION RULES

Article 69

1. The Parties recognise the importance of the approximation of Croatia's existing legislation to that of the Community. Croatia shall endeavour to ensure that its existing laws and future legislation will be gradually made compatible with the Community acquis.

2. This approximation will start on the date of signing of the Agreement, and will gradually extend to all the elements of the Community acquis referred to in this Agreement by the end of the period defined in article 5 of this Agreement. In particular, at an early stage, it will focus on fundamental elements of the Internal Market acquis as well as on other trade-related areas, on the basis of a programme to be agreed between the Commission of the European Communities and Croatia. Croatia will also define, in agreement with the Commission of the European Communities, the modalities for the monitoring of the implementation of approximation of legislation and law enforcement actions to be taken.

Article 70

Competition and other economic provisions

1. The following are incompatible with the proper functioning of the Agreement, in so far as they may affect trade between the Community and Croatia:

(i) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;

(ii) abuse by one or more undertakings of a dominant position in the territories of the Community or of Croatia as a whole or in a substantial part thereof;

(iii) any State aid which distorts or threatens to distort competition by favouring certain undertakings or certain products.

2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the application of the competition rules applicable in the Community, in particular from Articles 81, 82, 86 and 87 of the Treaty establishing the European Community and interpretative instruments adopted by the Community institutions.

3. The Parties shall ensure that an operationally independent public body is entrusted with the powers necessary for the full application of paragraph 1 (i) and (ii) of this article, regarding private and public undertakings and undertakings to which special rights have been granted.

4. Croatia shall establish an operationally independent authority which is entrusted with the powers necessary for the full application of paragraph 1 (iii) of this Article within one year from the date of entry into force of this Agreement. This authority shall have, inter alia, the powers to authorise State aid schemes and individual aid grants in conformity with paragraph 2 of this Article, as well as the powers to order the recovery of State aid that has been unlawfully granted.

5. Each Party shall ensure transparency in the area of State aid, inter alia by providing to the other Party a regular annual report, or equivalent, following the methodology and the presentation of the Community survey on State aid. Upon request by one Party, the other Party shall provide information on particular individual cases of public aid.

6. Croatia shall establish a comprehensive inventory of aid schemes instituted before the establishment of the authority referred to in paragraph 4 and shall align such aid schemes with the criteria referred to in paragraph 2 of this Article within a period of no more than four years from the entry into force of this Agreement.

7. (a) For the purposes of applying the provisions of paragraph 1(iii), the Parties recognise that during the first four years after the entry into force of this Agreement, any public aid granted by Croatia shall be assessed taking into account the fact that Croatia shall be regarded as an area identical to those areas of the Community described in Article 87(3)(a) of the Treaty establishing the European Community.

(b) Within three years form the entry into force of this Agreement, Croatia shall submit to the Commission of the European Communities its GDP per capita figures harmonised at NUTS II level. The authority referred to in paragraph 4 and the Commission of the European Communities shall then jointly evaluate the eligibility of the regions of Croatia as well as the maximum aid intensities in relation thereto in order to draw up the regional aid map on the basis of the relevant Community guidelines.

8. With regard to products referred to in Chapters II of Title IV:

- paragraph 1 (iii) shall not apply;

- any practices contrary to paragraph 1(i) shall be assessed according to the criteria established by the Community on the basis of Articles 36 and 37 of the Treaty establishing the European Community and specific Community instruments adopted on this basis.

9. If one of the Parties considers that a particular practice is incompatible with the terms of paragraph 1 of this Article, it may take appropriate measures after consultation within the Stabilisation and Association Council or after thirty working days following referral for such consultation.

Nothing in this Article shall prejudice or affect in any way the taking, by either Party, of antidumping or countervailing measures in accordance with the relevant Articles of GATT 1994 and WTO Agreement on Subsidies and Countervailing Measures or related internal legislation.

Article 71

Intellectual, industrial and commercial property

1. Pursuant to the provisions of this Article and Annex VIII, the Parties confirm the importance that they attach to ensure adequate and effective protection and enforcement of intellectual, industrial and commercial property rights.

2. Croatia shall take the necessary measures in order to guarantee no later than three years after entry into force of this Agreement a level of protection of intellectual, industrial and commercial property rights similar to that existing in the Community, including effective means of enforcing such rights.

3. The Stabilisation and Association Council may decide to oblige Croatia to accede to specific multilateral Conventions in this area.

4. If problems in the area of intellectual, industrial and commercial property affecting trading conditions occur, they shall be referred urgently to the Stabilisation and Association Council, at the request of either Party, with a view to reaching mutually satisfactory solutions.

Article 72

Public contracts

1. The Parties consider the opening-up of the award of public contracts on the basis of non-discrimination and reciprocity, in particular in the WTO context, to be a desirable objective.

2. Croatian companies, whether established or not in the Community, shall be granted access to contract award procedures in the Community pursuant to Community procurement rules under treatment no less favourable than that accorded to Community companies as from the entry into force of this Agreement.

The above provisions will also apply to contracts in the utilities sector once the government of Croatia has adopted the legislation introducing the Community rules in this area. The Community shall examine periodically whether Croatia has indeed introduced such legislation.

Community companies not established in Croatia shall be granted access to contract award procedures in Croatia pursuant to the Law on Public Procurement under treatment no less favourable than that accorded to Croatian companies at the latest three years after the entry into force of this Agreement. Community companies established in Croatia under the provisions of Chapter II of Title V shall have upon entry into force of this Agreement access to contract award procedures under treatment no less favourable than that accorded to Croatian companies.

The Stabilisation and Association Council shall periodically examine the possibility for Croatia to introduce access to award procedures in Croatia for all Community companies.

3. As regards establishment, operations, supply of services between the Community and Croatia, and also employment and movement of labour linked to the fulfilment of public contracts, the provisions of Articles 45 to 68 are applicable.

Article 73

Standardisation, Metrology, Accreditation and Conformity Assessment

1. Croatia shall take the necessary measures in order to gradually achieve conformity with Community technical regulations and European standardisation, metrology, accreditation and conformity assessment procedures.

2. To this end, the Parties shall start at an early stage to:

- promote the use of Community technical regulations and European standards, tests and conformity assessment procedures;

- conclude, where appropriate, European Conformity Assessment Protocols;

- foster the development of the quality infrastructure: standardisation, metrology, accreditation and conformity assessment;

- promote the participation of Croatia in the work of specialised European organisations, in particular CEN, CENELEC, ETSI, EA, WELMEC, EUROMET.

Article 74

Consumer protection

The Parties will co-operate in order to align the standards of consumer protection in Croatia to those of the Community. Effective consumer protection is necessary in order to ensure that the market economy functions properly, and this protection will depend on the development of an administrative infrastructure in order to ensure market surveillance and law enforcement in this field.

To that end, and in view of their common interests, the Parties will encourage and ensure:

- the harmonisation of legislation and the alignment of consumer protection in Croatia on that in force in the Community;

- a policy of active consumer protection including the increase of information and development of independent organisations;

- effective legal protection for consumers in order to improve the quality of consumer goods and maintain appropriate safety standards.

TITLE VII

JUSTICE AND HOME AFFAIRS

Introduction

Article 75

Reinforcement of institutions and rule of law

In their co-operation in justice and home affairs the Parties will attach particular importance to the consolidation of the rule of law and the reinforcement of institutions at all levels in the areas of administration in general, and law enforcement and the machinery of justice in particular.

Co-operation in the field of justice will focus in particular on the independence of the judiciary, the improvement of its effectiveness and the training of the legal professions.

Co-operation in the area of movement of persons

Article 76

Visa, border control, asylum and migration

1. The Parties shall co-operate in the areas of visa, border control, asylum and migration and will set-up a framework for the co-operation, including at a regional level, in these fields.

2. Co-operation in the matters referred to in paragraph 1 shall be based on mutual consultations and close co-ordination between the Parties and should include technical and administrative assistance for:

- the exchange of information on legislation and practices;

- the drafting of legislation;

- enhancing the efficiency of the institutions;

- the training of staff;

- the security of the travel documents and detection of false documents.

3. Co-operation will focus in particular:

- in the area of asylum on the development and implementation of national legislation to meet the standards of the 1951 Geneva Convention and the 1967 New York Protocol thereby to ensure that the principle of non-refoulement is respected.

- in the field of legal migration, on admission rules and rights and status of the persons admitted. In relation to migration, the Parties agree to the fair treatment of nationals of other countries who reside legally on their territories and to promote an integration policy aiming at granting them rights and obligations comparable to those of their citizens.

The Stabilisation and Association Council can recommend additional subjects for co-operation under this article.

Article 77

Prevention and control of illegal immigration; readmission

1. The Parties agree to co-operate in order to prevent and control illegal immigration. To this end:

- Croatia agrees to readmit any of its nationals illegally present on the territory of a Member State, upon request by the latter and without further formalities;

- and each Member State of the European Union agrees to readmit any of its nationals illegally present on the territory of Croatia, upon request by the latter and without further formalities.

The Member States of the European Union and Croatia will provide their nationals with appropriate identity documents and will extend to them the administrative facilities necessary for such purposes.

2. The Parties agree to conclude, upon request, an agreement between Croatia and the European Community regulating the specific obligations for Croatia and for the Member States of the European Union for readmission, including an obligation for the readmission of nationals of other countries and stateless persons.

3. Pending the conclusion of the agreement with the Community referred to in paragraph 2, Croatia agrees to conclude, upon request of a Member State, bilateral agreements with individual Member States of the European Union regulating the specific obligations for readmission between Croatia and the Member State concerned, including an obligation for the readmission of nationals of other countries and stateless persons.

4. The Stabilisation and Association Council shall examine what other joint efforts can be made to prevent and control illegal immigration, including the trafficking in human beings.

Co-operation on money laundering and illicit drugs

Article 78

Money laundering

1. The Parties agree on the necessity of making every effort and co-operating in order to prevent the use of their financial systems for laundering of proceeds from criminal activities in general and drug offences in particular.

2. Co-operation in this area may include administrative and technical assistance with the purpose to develop the implementation of regulations and efficient functioning of the suitable standards and mechanisms to combat money laundering equivalent to those adopted by the Community and international fora in this field.

Article 79

Co-operation on illicit drugs

1. Within their respective powers and competencies, the Parties shall co-operate to ensure a balanced and integrated approach towards drug control. Drug control policies and actions shall be aimed at reducing the supply of, trafficking in and the demand for illicit drugs as well as at a more effective control of precursors.

2. The Parties shall agree on the necessary methods of co-operation to attain these objectives. Actions shall be based on commonly agreed principles along the lines of the EU Drug Control Strategy.

The co-operation between the Parties shall comprise technical and administrative assistance in particular in the following areas:

- drafting of national legislation and policies;

- establishment of institutions and information centres;

- training of personnel;

- drug related research;

- and the prevention of diversion of precursors used for the illicit manufacture of drugs.

The Parties may agree to include other areas.

Co-operation in criminal matters

Article 80

Preventing and combating crime and other illegal activities

1. The Parties agree to co-operate on fighting and preventing criminal and illegal activities, organised or otherwise, such as:

- trafficking in human beings;

- illegal economic activities, and in particular corruption, counterfeiting of currencies, illegal transactions on products such as industrial waste, radioactive material and transactions involving illegal or counterfeit products;

- illicit trafficking in drugs and psychotropic substances;

- smuggling;

- illicit arms trafficking;

- terrorism.

Co-operation in the above matters will be the subject of consultations and close co-ordination between the parties.

2. The technical and administrative assistance in this field may include:

- the drafting of national legislation in the field of criminal law;

- enhancing the efficiency of the institutions charged with fighting and preventing crime;

- staff training and the development of investigative facilities;

- the formulation of measures to prevent crime.

TITLE VIII

COOPERATION POLICIES

Article 81

1. The Community and Croatia shall establish a close co-operation aimed at contributing to the development and growth potential of Croatia. Such co-operation shall strengthen existing economic links on the widest possible foundation, to the benefit of both Parties.

2. Policies and other measures will be designed to bring about the economic and social development of Croatia. These policies should ensure that environmental considerations are also fully incorporated from the outset and that they are linked to the requirements of harmonious social development.

3. Co-operation policies shall be integrated into a regional framework of co-operation. Special attention will have to be devoted to measures that can foster co-operation between Croatia and its neighbouring countries including Member States, thus contributing to regional stability. The Stabilisation and Association Council may define priorities between and within the co-operation policies described hereinafter.

Article 82

Economic policy

1. The Community and Croatia shall facilitate the process of economic reform by co-operating to improve understanding of the fundamentals of their respective economies and implementing economic policy in market economies.

2. To these ends the Community and Croatia shall co-operate to:

- exchange information on macroeconomic performance and prospects and on strategies for development;

- analyse jointly economic issues of mutual interest, including the framing of economic policy and the instruments for implementing it.

- promote wider co-operation with the aim to speed up the inflow of know-how and access to new technologies.

3. At the request of Croatian authorities, the Community may provide assistance designed to support the efforts of Croatia towards the gradual approximation of its policies towards those of the Economic and Monetary Union. Co-operation in this area will include informal exchange of information concerning the principles and the functioning of the Economic and Monetary Union and the European System of Central Banks.

Article 83

Statistical co-operation

1. Co-operation in the area of statistics shall aim at the development of an efficient and sustainable statistical system capable to provide in due time reliable, objective and accurate data needed to plan and monitor the process of transition and reform in Croatia. It shall enable the Central Bureau for Statistics of Croatia to better meet the needs of its customers, both public administration and private businesses. The statistical system shall respect the fundamental principles of statistics issued by the United Nations and the stipulations of the European Statistical law and develop towards the Community acquis.

2. To this end the Parties may cooperate in particular:

- to promote the development of an efficient statistical service in Croatia based on an appropriate institutional framework;

- to pursue harmonisation with international and European standards and classification in order to enable the national statistical system to adopt the Community acquis in statistics;

- to provide private and public sector economic operators and research community with the appropriate socio-economic data;

- to provide data needed to maintain and monitor economic reform;

- to ensure the confidentiality of individual data;

- to progressively increase data collection and transmission to the European Statistical System.

3. Co-operation in this field shall include, in particular, exchange of information on methods, transfer of know-how and training.

Article 84

Banking, insurance and other financial services

1. The Parties shall co-operate with the aim of establishing and developing a suitable framework for the encouragement of the banking, insurance and financial services sectors in Croatia.

Co-operation shall focus on:

- the adoption of a common accounting system compatible with European standards;

- the strengthening and restructuring of the banking, insurance and other financial sectors;

- the improvement of supervision and regulation of banking and other financial services;

- the exchange of information in particular in respect of proposed legislation;

- the preparation of translations and terminology glossaries.

2. The Parties shall co-operate with the aim of developing efficient audit systems in Croatia following the harmonised Community methods and procedures.

Co-operation shall focus on:

- technical assistance to the State Auditing Office in Croatia;

- the establishment of internal audit units in official agencies;

- the exchange of information with regard to auditing systems;

- the standardisation of audit documentation;

- training and advisory operations.

Article 85

Investment promotion and protection

1. Co-operation between the Parties shall be aimed at establishing a favourable climate for private investment, both domestic and foreign.

2. The particular aims of co-operation shall be:

- for Croatia to improve a legal framework which favours and protects investment;

- the conclusion, where appropriate, with Member States of bilateral agreements for the promotion and protection of investment;

- the improvement of investment protection.

Article 86

Industrial co-operation

1. Co-operation shall be aimed at promoting the modernisation and restructuring of the Croatian industry and individual sectors, as well as industrial co-operation between economic operators of both sides, with the particular objective of strengthening the private sector under conditions that ensure that the environment is protected.

2. Industrial co-operation initiatives will reflect the priorities determined by both Parties. They will take into account the regional aspects of industrial development, promoting trans-national partnerships when relevant. The initiatives should seek in particular to establish a suitable framework for undertakings, to improve management, know-how and to promote markets, market transparency and the business environment. Special attention shall be devoted to the establishment of efficient export promotion activities in Croatia.

Article 87

Small and medium-sized enterprises

The Parties shall aim to develop and strengthen private sector small and medium-sized enterprises (SMEs), the establishment of new undertakings in areas offering potential for growth and the co-operation between SMEs in the Community and in Croatia.

Article 88

Tourism

1. Co-operation between the Parties in the field of tourism will be aimed at facilitating and encouraging tourism and tourist trade through transfer of know-how, participation of Croatia in important European tourism organisations and studying the opportunities for joint operations.

2. Co-operation shall include the following in particular:

- exchanging information on major issues of mutual interest affecting the tourism sector and transferring of know-how;

- encouraging the development of infrastructure conducive to investment in the tourism sector;

- examining regional tourist projects.

Article 89

Customs

1. The parties shall cooperate to guarantee compliance with all the provisions scheduled for adoption in the area of trade and to achieve the approximation of the customs system of Croatia to that of the Community, thus helping to pave the way for liberalisation measures planned under this Agreement.

2. Co-operation shall include the following in particular:

- the possibility of interconnection between the transit systems of the Community and Croatia, as well as the use of the Single Administrative Document (SAD);

- the improvement and simplification of inspections and formalities in respect of the carriage of goods;

- the development of cross-border infrastructure between the Parties;

- the development of customs co-operation support for introduction of modern customs information systems;

- the exchange of information including on the methods of investigation;

- the adoption by Croatia of the Combined Nomenclature;

- training of customs officers.

3. Without prejudice to further co-operation provided for in this Agreement, and in particular Articles 77, 78 and 80, the mutual assistance between administrative authorities in customs matters of the Parties shall take place in accordance with the provisions of Protocol 5.

Article 90

Taxation

The Parties will establish co-operation in the field of taxation including measures aiming at the further reform of the fiscal system and the restructuring of tax administration with a view to ensuring effectiveness of tax collection and the fight against fiscal fraud.

Article 91

Social co-operation

1. With regard to employment, co-operation between the Parties shall focus notably on upgrading job-finding and careers advice services, providing back-up measures and promoting local development to assist industrial and labour market restructuring. It shall also include measures such as studies, the secondment of experts and information and training operations.

2. With regard to social security, co-operation between the Parties shall seek to adapt the social security system of Croatia to the new economic and social requirements, notably by providing the services of experts and organising information and training activities.

3. Co-operation between the Parties will involve the adjustment of the Croatian legislation concerning working conditions and equal opportunities for women and men.

4. The Parties shall develop co-operation between them with the aim of improving the level of protection of the health and safety of workers, taking as a reference the level of protection existing in the Community.

Article 92

Agriculture, and the agro-industrial sector

Co-operation in this field shall have as its aim the modernisation and restructuring of agriculture and the agro-industrial sector in consistence with the Community rules and standards, the water management, the rural development, the gradual harmonisation of the veterinary and phytosanitary legislation with Community standards and the development of the forestry sector in Croatia.

Article 93

Fisheries

The Community and Croatia shall explore the possibility of identifying areas of common interest in the fisheries sector, which by their nature would have to be mutually beneficial.

Article 94

Education and training

1. The Parties shall co-operate with the aim of raising the level of general education and professional qualifications in Croatia.

2. The Tempus programme will contribute to strengthening co-operation between the Parties in the field of education and training, promoting democracy, the rule of law and economic reform.

3. The European Training Foundation will also contribute to the upgrading of training structures and activities in Croatia.

Article 95

Cultural co-operation

The Parties undertake to promote cultural co-operation. This co-operation serves inter alia to raise mutual understanding and esteem between individuals, communities and peoples.

Article 96

Information and communication

The Community and Croatia will take the measures necessary to stimulate the mutual exchange of information. Priority will be given to programmes aimed at providing the general public with basic information about the Community and professional circles in Croatia with more specialised information.

Article 97

Co-operation in the audio-visual field

1. The Parties shall cooperate to promote the audio-visual industry in Europe and encourage co-production in the fields of cinema and television.

2. Croatia will align its policies on the regulation of content aspects of cross-border broadcasting, paying particular attention to matters relating to the acquisition of intellectual property rights for programmes and broadcast by satellite or cable, with those of the Community, and will harmonise its legislation with the EC acquis.

Article 98

Electronic Communications Infrastructure and Associated Services

1. The Parties will strengthen co-operation in the area of electronic communications infrastructures, including classical telecommunications networks and relevant electronic audio-visual transport networks, and associated services, with the objective of ultimate alignment with the acquis by Croatia as from the entry into force of the Agreement.

2. The above mentioned co-operation will focus on the following priority areas:

- Policy development;

- Legal and regulatory aspects;

- Institution Building required for a liberalised environment;

- Modernisation of Croatia's electronic infrastructure and its integration into European and world networks, with a focus on improvements at a regional level;

- International co-operation;

- Co-operation within European structures especially those involved in standardisation;

- Co-ordinating positions in international organisations and fora.

Article 99

Information Society

The Parties will strengthen co-operation with the objective of further developing the Information Society in Croatia. Global objectives will be preparing society as a whole for the digital age, attracting investments and interoperability of networks and services.

The Croatian authorities, with the assistance of the Community, will review carefully any political commitment undertaken in the European Union with the objective of aligning its own policies with those of the Union.

The Croatian authorities will establish a plan for the adoption of Community legislation in the area of the Information Society.

Article 100

Transport

1. In addition to the provisions of article 58 and Protocol 6 of this Agreement, the Parties shall develop and step up co-operation in the field of transport in order to enable Croatia to:

- restructure and modernise transport and related infrastructure;

- improve movement of passengers and goods and access to the transport market, by the removing of administrative, technical and other barriers;

- achieve operating standards comparable to those in the Community;

- develop a transport system compatible and aligned with the Community system;

- improve the protection of environment in transport, reduction of harmful effects and pollution.

2. Cooperation shall include the following priority areas:

- the development of road, rail, airport, inland waterways and port infrastructure and other major routes of common interest and Trans-European and Pan-European links.

- the management of railways and airports, including appropriate cooperation between the relevant national authorities;

- road transport, including road taxes and charges and social and environmental aspects;

- combined rail and road transport;

- the harmonisation of international transport statistics;

- the modernisation of technical transport equipment in line with Community standards, and assistance in acquiring financing to that end, particularly as regards road-rail transport, multimodal transport and transhipment;

- the promotion of joint technological and research programmes;

- the adoption of coordinated transport policies that are compatible with those applied in the Community.

Article 101

Energy

1. Co-operation will reflect the principles of the market economy and the European Energy Charter Treaty, and will develop with a view to the gradual integration of Europe's energy markets.

2. Co-operation shall include the following in particular:

- the formulation and planning of energy policy, including modernisation of infrastructure, improvement and diversification of supply and improvement of access to the energy market, including facilitation of transit, transmission and distribution and the restoration of electricity interconnections of regional importance with neighbouring countries;

- the management and training for the energy sector and transfer of technology and know-how;

- the promotion of energy saving, energy efficiency, renewable energy and studying of the environmental impact of energy production and consumption;

- the formulation of framework conditions for restructuring of energy companies and co-operation between undertakings in this sector;

- the development of a regulatory framework in the field of energy in line with the EC acquis.

Article 102

Nuclear safety

1. The Parties will co-operate in the field of nuclear safety and safeguards. Co-operation could cover the following topics:

- upgrading the Croatian laws and regulations on nuclear safety and strengthening the supervisory authorities and their resources;

- radiation protection, including environmental radiation monitoring;

- radioactive waste management and, as appropriate, decommissioning of nuclear facilities;

- encouraging the promotion of Agreements between the EU Member States or Euratom and Croatia on early notification and exchange of information in cases of nuclear accidents and on emergency preparedness as well as cross-border seismic research and on nuclear safety issues generally, if appropriate;

- fuel cycles problems;

- safeguarding of nuclear materials;

- strengthening the supervision and control on the transport of materials sensitive to radioactive pollution;

- nuclear third part liability.

Article 103

Environment

1. The Parties shall develop and strengthen their co-operation in the vital task of combating environmental degradation, with the view to promoting environmental sustainability.

2. Co-operation could centre on the following priorities:

- water quality, including waste water treatment particularly of transboundary watercourses;

- combating local, regional and transboundary air and water (including drinking water) pollution;

- effective monitoring of pollution levels and emissions;

- development of strategies with regard to global and climate issues;

- efficient, sustainable and clean production and use of energy;

- classification and safe handling of chemicals;

- safety of industrial plants;

- waste reduction, recycling and safe disposal, and the implementation of the Basle Convention on the control of transboundary movements of hazardous wastes and their disposal (Basle 1989);

- the environmental impact of agriculture; soil erosion and pollution by agricultural chemicals;

- the protection of the flora and fauna including forests, and the conservation of biodiversity;

- town and country planning, including construction and urban planning;

- the use of economic and fiscal instruments to improve the environment;

- the execution of environmental impact assessment and strategic environmental assessment;

- continuous approximation of laws and regulations to Community standards;

- international Conventions in the area of environment where the Community is a Party;

- co-operation at regional and international level;

education and information on environmental issues and sustainable development.3. In the field of protection against natural disasters, the Parties will co-operate to ensure the protection of people, animals, property and environment against man-made disasters. To this end the co-operation could include the following areas:

- the exchange of the outcome of scientific and research development projects;

- mutual and early notification and warning systems on hazards disasters and their consequences;

- rescue and relief exercises and assistance systems in case of disasters;

- exchange of experience in rehabilitation and reconstruction after disaster.

Article 104

Co-operation in Research and Technological Development

1. The Parties shall promote bilateral co-operation in civil scientific research and technological development (RTD) on the basis of mutual benefit and, taking into account the availability of resources, adequate access to their respective programmes, subject to appropriate levels of effective protection of intellectual, industrial and commercial property rights (IPR).

2. This co-operation shall cover:

- the exchange of scientific and technical information and the organisation of joint scientific meetings;

- joint RTD activities,

- training activities and mobility programmes for scientists, researchers and technicians engaged in RTD in both sides.

3. Such co-operation shall be implemented according to specific arrangements to be negotiated and concluded in accordance with the procedures adopted by each Party, and which shall set out, inter alia, appropriate IPR provisions.

Article 105

Regional and local development

The Parties will strengthen regional development co-operation, with the objective of contributing to economic development and reducing regional imbalances.

Specific attention will be given to cross-border, trans-national and interregional co-operations. To this end, the exchange of information and experts may be undertaken.

TITLE IX

FINANCIAL COOPERATION

Article 106

In order to achieve the objectives of this agreement and in accordance with Articles 3, 107 and 109 Croatia may receive financial assistance from the Community in the forms of grants and loans, including loans from the European Investment Bank.

Article 107

Financial assistance, in the form of grants, shall be covered by the operation measures provided for in the relevant Council Regulation within a multi-annual indicative framework established by the Community following consultations with Croatia.

The overall objectives of the assistance, in the form of institution-building and investment, shall contribute to the democratic, economic and institutional reforms of Croatia, in line with the Stabilisation and Association process. Financial assistance may cover all areas of harmonisation of legislation and all co-operation policies of this agreement, including Justice and Home Affairs. Consideration should be given to the full implementation of the infrastructure projects of common interest identified in the Protocol 6.

Article 108

At the request of Croatia and in case of special need, the Community could examine in co-ordination with international financial institutions, the possibility of granting on an exceptional basis macro-financial assistance subject to certain conditions and taking into account the availability of all financial resources .

Article 109In order to permit optimum use of the resources available, the Parties shall ensure that Community contributions are made in close co-ordination with those from other sources such as the Member States, other countries and international financial institutions.

To this effect, information on all sources of assistance shall be exchanged regularly between the Parties.

TITLE X

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 110

A Stabilisation and Association Council is hereby established which shall supervise the application and implementation of this Agreement. It shall meet at an appropriate level at regular intervals and when circumstances require. It shall examine any major issues arising within the framework of this Agreement and any other bilateral or international issues of mutual interest.

Article 111

1. The Stabilisation and Association Council shall consist of the members of the Council of the European Union and members of the Commission of the European Communities, on the one hand, and of members of the Government of Croatia, on the other.

2. The Stabilisation and Association Council shall establish its rules of procedure.

3. The members of the Stabilisation and Association Council may arrange to be represented, in accordance with the conditions to be laid down in its rules of procedure.

4. The Stabilisation and Association Council shall be chaired in turn by a representative of the European Community and a representative of Croatia, in accordance with the provisions to be laid down in its rules of procedure.

5. In matters that concern it, the European Investment Bank shall take part, as an observer, in the work of the Stabilisation and Association Council.

Article 112

The Stabilisation and Association Council shall, for the purpose of attaining the objectives of this Agreement, have the power to take decisions within the scope of the Agreement in the cases provided for therein. The decisions taken shall be binding on the Parties, which shall take the measures necessary to implement the decisions taken. The Stabilisation and Association Council may also make appropriate recommendations. It shall draw up its decisions and recommendations by agreement between the Parties.

Article 113

Each Party shall refer to the Stabilisation and Association Council any dispute relating to the application or interpretation of this Agreement. The Stabilisation and Association Council may settle the dispute by means of a binding decision.

Article 114

1. The Stabilisation and Association Council shall be assisted in the performance of its duties by a Stabilisation and Association Committee, composed of representatives of the Council of the European Union and of representatives of the Commission of the European Communities, on the one hand, and of representatives of Croatia on the other. 2. In its rules of procedure the Stabilisation and Association Council shall determine the duties of the Stabilisation and Association Committee, which shall include the preparation of meetings of the Stabilisation and Association Council, and shall determine how the Committee shall function.3. The Stabilisation and Association Council may delegate to the Stabilisation and Association Committee any of its powers. In this event the Stabilisation and Association Committee shall take its decisions in accordance with the conditions laid down in Article 112. Article 115

The Stabilisation and Association Committee may create subcommittees.

Article 116

A Stabilisation and Association Parliamentary Committee is hereby established. It shall be a forum for Members of Croatian Parliament and the European Parliament to meet and exchange views. It shall meet at intervals that it shall itself determine.

The Stabilisation and Association Parliamentary Committee shall consist of members of the European Parliament, on the one hand, and of Members of the Parliament of Croatia, on the other.

The Stabilisation and Association Parliamentary Committee shall establish its rules of procedure.

The Stabilisation and Association Parliamentary Committee shall be chaired in turn by the European Parliament and the Parliament of Croatia, in accordance with the provisions to be laid down in its rules of procedure.

Article 117

Within the scope of this Agreement, each Party undertakes to ensure that natural and legal persons of the other Party have access free of discrimination in relation to its own nationals to the competent courts and administrative organs of the Parties to defend their individual rights and their property rights.

Article 118

Nothing in this Agreement shall prevent a Party from taking any measures:

(a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests;

(b) which relate to the production of, or trade in, arms, munitions or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes;

(c) which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security.

Article 119

1. In the fields covered by this Agreement and without prejudice to any special provisions contained therein:

- the arrangements applied by Croatia in respect of the Community shall not give rise to any discrimination between the Member States, their nationals, companies or firms;

- the arrangements applied by the Community in respect of Croatia shall not give rise to any discrimination between Croatian nationals, companies or firms.

2. The provisions of paragraph 1 shall be without prejudice to the right of the Parties to apply the relevant provisions of their fiscal legislation to taxpayers who are not in identical situations as regards their place of residence.

Article 120

1. The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement. They shall see to it that the objectives set out in this Agreement are attained.

2. If either Party considers that the other Party has failed to fulfil an obligation under this Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, it shall supply the Stabilisation and Association Council with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.

3. In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement. These measures shall be notified immediately to the Stabilisation and Association Council and shall be the subject of consultations within the Stabilisation and Association Council if the other Party so requests.

Article 121

The Parties agree to consult promptly through appropriate channels at the request of either Party to discuss any matter concerning the interpretation or implementation of this Agreement and other relevant aspects of the relations between the Parties.

The provisions of this Article shall in no way affect and are without prejudice to Articles 31, 38, 39 and 43.

Article 122

This Agreement shall not, until equivalent rights for individuals and economic operators have been achieved under this Agreement, affect rights ensured to them through existing agreements binding one or more Member States, on the one hand, and Croatia, on the other.

Article 123

Protocols 1, 2, 3, 4, 5 and 6 and Annexes I to VIII shall form an integral part of this Agreement.

Article 124

This Agreement is concluded for an unlimited period.

Either Party may denounce this Agreement by notifying the other Party. This Agreement shall terminate six months after the date of such notification.

Article 125

For the purposes of this Agreement, the term "Parties" shall mean the Community, or its Member States, or the Community and its Member States, in accordance with their respective powers, of the one part, and Croatia, of the other part.

Article 126

This Agreement shall apply, on the one hand, to the territories in which the Treaties establishing the European Community, the European Coal and Steel Community and the European Atomic Energy Community are applied and under the conditions laid down in those Treaties, and to the territory of Croatia on the other.

Article 127

The Secretary General of the Council of the European Union shall be the depository of the Agreement.

Article 128

This Agreement is drawn up in duplicate in each of the official languages of the Parties, each of these texts being equally authentic.

Article 129

The Parties shall approve this Agreement in accordance with their own procedures.

This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify each other that the procedures referred to in the first paragraph have been completed.

Article 130

Interim Agreement

In the event that, pending the completion of the procedures necessary for the entry into force of this Agreement, the provisions of certain parts of this Agreement, in particular those relating to the free movement of goods as well as the relevant provisions on Transport, are put into effect by means of Interim Agreements between the Community and Croatia, the Parties agree that, in such circumstances for the purpose of the provisions of Title IV, Articles 70 and 71 of this Agreement, Protocols 1 to 5 and relevant provisions of protocol 6 hereto, the terms "date of entry into force of this Agreement" mean the date of entry into force of the relevant Interim Agreement in relation to obligations contained in the above-mentioned provisions.

Joint declaration on articles 21 and 29

The Parties declare that in the implementation of articles 21 and 29 they will examine, in the Stabilisation and Association Council, the impact of any preferential agreements negotiated by Croatia with third countries (excluding the countries covered by the EU Stabilisation and Association Process and other adjacent countries which are not EU members).

This examination will allow for an adjustment of Croatian concessions to the European Community if Croatia were to offer significantly better concessions to these countries.

Joint Declaration concerning Article 41

1. The Community declares its readiness to examine, within the Stabilisation and Association Council, the issue of Croatia's participation in diagonal cumulation of rules of origin once economic and commercial as well as other relevant conditions for granting diagonal cumulation have been established.

2. With this in mind, Croatia declares its readiness to enter into negotiations as soon as possible in order to start economic and trade cooperation with a view to establishing free trade areas with, in particular, the other countries covered by the European Union's Stabilisation and Association Process.

Joint Declaration concerning Article 45

It is understood that the notion "children" is defined in accordance with national legislation of the host country concerned.

Joint Declaration concerning Article 46

It is understood that the notion "members of their family" is defined in accordance with national legislation of the host country concerned.

Joint Declaration concerning article 58

The Parties express their interest in opening, as soon as possible, discussions on future co-operation in the field of air transport.

Joint Declaration concerning article 60

The Parties agree that the provisions laid down in Article 60 shall not be construed to prevent proportionate, non-discriminatory restrictions to the acquisition of real estate based on general interest, nor otherwise affect the Parties' rules governing the system of property ownership, except as specifically laid down therein.

It is understood that the acquisition of real estate by Croatian nationals is allowed in the Member States of the European Union in accordance with the applicable Community law, subject to specific exceptions permitted thereby and applied in conformity with the applicable national legislations of the Member States of the European Union.

Joint Declaration concerning Article 71

The Parties agree that for the purpose of this Agreement, intellectual, industrial and commercial property includes in particular copyright, including the copyright in computer programmes, and neighbouring rights, the rights relating to databases, patents, industrial designs, trademarks and service marks, topographies of integrated circuits geographical indications, including appellation of origins, as well as protection against unfair competition as referred to in Article 10a of the Paris Convention for the Protection of Industrial Property and protection of undisclosed information on know-how.

Joint Declaration concerning Article 120

(a) For the purposes of the interpretation and practical application of the Agreement, the parties agree that the cases of special urgency referred to in Article 120 of the Agreement mean cases of material breach of the Agreement by one of the two parties. A material breach of the Agreement consists in

- repudiation of the Agreement not sanctioned by the general rules of international law

- violation of the essential elements of the Agreement set out in Article 2

(b) The parties agree that the "appropriate measures" referred to in Article 120 are measures taken in accordance with international law. If a party takes a measure in a case of special urgency pursuant to Article 120, the other party may avail itself of the dispute settlement procedure.

Declarations concerning Protocol 4

Joint declaration

concerning the Principality of Andorra

1. Products originating in the Principality of Andorra falling within Chapters 25 to 97 of the Harmonised System shall be accepted by Croatia as originating in the Community within the meaning of this Agreement.

2. Protocol 4 shall apply mutatis mutandis for the purpose of defining the originating status of the above-mentioned products.

Joint declaration

concerning the Republic of San Marino

1. Products originating in the Republic of San Marino shall be accepted by Croatia as originating in the Community within the meaning of this Agreement.

2. Protocol 4 shall apply mutatis mutandis for the purpose of defining the originating status of the above mentioned products.

Declaration by the Community and its Member States

Considering that exceptional trade measures are granted by the European Community to countries participating or linked to the EU Stabilisation and Association Process including Croatia on the basis of Regulation (EC) No. 2007/2000, the European Community and its Member States declare:

- that, in application of Article 30 of this Agreement, those of the unilateral autonomous trade measures which are more favourable shall apply in addition to the contractual trade concessions offered by the Community in this Agreement as long as Council Regulation (EC) No. 2007/2000 as amended applies;

- that, in particular, for the products covered by Chapters 7 and 8 of the Combined Nomenclature, for which the Common Customs Tariff provides for the application of ad valorem customs duties and a specific customs duty, the reduction shall apply also to the specific customs duty in derogation from the relevant provision of Article 27.1.

List of Annexes

Annex I (Art 18.2) Croatian Tariff concession for EC Industrial Products

Annex II (Art 18.3) Croatian Tariff concession for EC Industrial Products

Annex III(Art 27) : EC Definition of "Baby beef"

Annex IV a) (Art 27.3(a) Croatian Tariff concession for Agricultural products (duty-free for unlimited quantities at the date of entering into force of the Agreement)

Annex IV b) (Art 27.3(b) Croatian Tariff concession for Agricultural products (duty-free within quota at the entering into force of the Agreement)

Annex IV c) (Art 27.3(c) Croatian Tariff concession for Agricultural products (duty-free for unlimited quantities one year after entering into force of the Agreement)

Annex IV d) (Art. 27.3(d) Croatian Tariff concession for agricultural products (progressive elimination of MFN duties within tariff quotas)

Annex IV e) (Art. 27.3(e) Croatian Tariff concession for agricultural products (progressive reduction of MFN duties for unlimited quantities)

Annex IV f) (Art. 27.3(f) Croatian Tariff concession for agricultural products (progressive reduction of MFN duties within quotas)

Annex V a) Products referred to in Article 28.1

Annex V b): Products referred to in Article 28.2

Annex VI (Art. 50): Establishment:" Financial services"

Annex VII (Art. 60.2) Acquisition of real property - List of exceptions

Annex VIII (Art 71): Intellectual, Industrial Commercial property rights: List of Conventions

ANNEX I

Croatian Tariff concession for Community Industrial Products (article 18.2)

Duty rates will be reduced as follows:

- on the date of entry into force of the Agreement, duty shall be reduced to 60% of the basic duty

- on 1 January 2003, duty shall be reduced to 30% of the basic duty

- on 1 January 2004, the remaining duties shall be abolished

HS 6+ // Description

25.01 // Salt ( including table salt and denatured salt) and pure sodium chloride, whether or not in aqueous solution or containing added anti caking or free-flowing agents; sea water

2501.001 // --- table salt and salt for food industry

2501.002 // --- salt for Other industry

2501.009 // --- Other

25.15 // Marble, travertine, ecaussine and other calcareous monumental or building stone of an apparent specific gravity of 2,5 or more and alabaster, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of rectangular (including square) shape.

2515.1 // Marble and travertine

2515.11 // --Crude or roughly trimmed

2515.12 // --Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape

2515.20 // -Ecaussine and Other calcareous monumental or building stone; alabaster

27.10 // Petroleum oils and oils obtained from bituminous minerals other than crude; preparations not elsewhere specified or included containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations

2710.001 // --- motor petrol and other light oils

2710.0014 // ---- special petroles (extractable and Other)

2710.0015 // ---- white spirit

2710.0017 // ---- spirit type jet fuel

2710.002 // --- kerosene and other medium oils

2710.0021 // ---- kerosene

2710.0022 // ---- kerosene type jet fuel

2710.0023 // ---- alpha and normal olefins (mixtures), normal paraffin's (C10 - C13)

2710.003 // ---heavy oils except waste and intended for further manufacturing

2710.0033 // ---- light, medium, heavy and extra heavy fuel oils with low sulfur content

2710.0034 // ---- other light, medium, heavy and extra heavy fuel oil

2710.0035 // ---- base oils

2710.0039 // ---- Other heavy oils and products based on heavy oils

27.11 // Petroleum gases and other gaseous hydrocarbons

2711.1 // Liquefied

2711.12 // --Propane

2711.13 // --Butanes

2711.19 // --Other

2711.191 // --- Mixtures of Propane and butane

2711.199 // --- Other

2711.29 // --Other

27.12 // Petroleum jelly; paraffin wax, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not colored.

2712.10 // -petroleum jelly

2712.20 // -Paraffin wax containing by weight less than 0.75 % of oil

27.13 // Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals.

2713.20 // -petroleum bitumen

27.15 // Bituminous mixtures based on natural asphalt, on natural bitumen, on petroleum bitumen, on mineral tar or on mineral tar pitch ( for example, bituminous mastics, cut-backs).

2715.009 // --- Other

2803.00 // Carbon ( carbine blacks and other forms of carbon not elsewhere specified or included)

2803.001 // --- carbon black

28.06 // Hydrogen chloride (hydrochloric acid); chlorosulphuric acid.

2806.10 // Hydrogen chloride (hydrochloric acid);

2806.101 // --- pro analysis

2808.00 // Nitric acid; sulphonitric acids.

2808.002 // --- Other nitric acid

28.14 // Ammonia, anhydrous or in aqueous solution

2814.20 // --Ammonia in aqueous solution

2814.201 // --- pro analysis

28.15 // Sodium hydroxide (caustic soda); potassium hydroxide ( caustic potash ); peroxides of sodium or potassium.

2815.11 // --Solid

2815.111 // --- granulated, pro analyze

2815.20 // -Potassium hydroxide (caustic potash)

2815.201 // --- granulated, pro analysis

29.02 // Cyclic hydrocarbons

2902.4 // - Xylenes

2902.41 // --o-Xylene

2902.411 // --- pro analysis

2902.42 // --m-Xylene

2902.421 // --- pro analysis

2902.43 // --p-Xylene

2902.431 // --- pro analysis

2902.44 // --Mixed Xylene isomers

2902.441 // --- pro analysis

29.05 // Acyclic alcohol and their halogenated, sulphonated, nitrated or nitrosated derivates

2905.1 // -Saturated monohydric alcohols

2905.11 // --Methanol (methyl acohol)

2905.111 // --- pro analysis

2905.12 // Propane 1 ol ( propyl alcohol ) and propane 2 ol (isopropyl alcohol)

2905.121 // --- pro analysis

29.14 // Ketones and quinones, whether or not with other oxygen function, and their halogenated, sulphonated, nitrated or nitrostated derivates.

2914.1 // - Acyclic ketones without other oxygen function

2914.11 // --Acetone

2914.111 // --- pro analysis

29.15 // Saturated acyclic monocarboxylic acidis and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivates.

2915.3 // - Esters of acetic acid

2915.311 // --- pro analysis

29.33 // Heterocyclic compounds with nitrogen hetero-atom(s) only

2933.6 // - Compounds containing an unfused triazine ring (whether or not hydrogenated) in the structure

2933.691 // --- atrazine

30.02 // Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes; vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar products.

3002.30 // -Vaccines for veterinary medicine

30.03 // Medicaments (excluding goods of heading No. 30.02., 30.05 or 30.06. ) consisting of two or more consistuents which have been mixes together for therapeutic or phrophylactic uses, not put up in measured doses or in forms of packings for retail sale.

3003.90 // - other

3003.909 // --- Other

30.04 // Medicaments (excluding goods of heading No. 30.02., 30.05 or 30.06. ) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses or in forms or packings for retail sale.

3004.10 // --Containing penicillin's derivates thereof, with a penicillanic acid structure, or streptomycins or their driyatives

3004.101 // --- ready medicaments for retail sale

3004.20 // --containing Other antibiotics

3004.201 // --- ready medicaments for retail sale

3004.3 // --Containing hormones or other products of heading No 29.37 but not containing antibiotics

3004.31 // --containing Insulin

3004.311 // --- ready medicaments for retail sale

3004.32 // --containing adrenal cortical hormones

3004.321 // --- ready medicaments for retail sale

3004.39 // --Other

3004.391 // --- ready medicaments for retail sale

3004.40 // --Containing alkaloids or derivates thereof but not containing hormones, other products of heading No 29.37 or antibiotics

3004.401 // --- ready medicaments for retail sale

3004.50 // --Other medicaments containing vitamins or other products of heading No. 29.36

3004.501 // --- ready medicaments for retail sale

3004.90 // --Other

3004.902 // --- ready medicaments for retail sale

3004.909 // --- Other

30.06 // Pharmaceutical goods specified in Note 4 to this Chapter

3006.50 // -First-aid boxes and kits

32.07 // Prepared pigments, prepared opacifiers and prepared colors, vitrifiable elements and glazes, engobles (slips), liquid lustres and similar preparations, of a kind used in the ceramic, enameling or glass industry, glass frit and other glass, in the form of powder, granules or flakes

3207.10 // -Prepared pigments, prepared opacifiers, prepared colors and similar preparations

3207.20 // -Vitrifiable enamels and glazes, engobes (slips) and similar preparations

3207.30 // -liquid lustres and similar preparations

3207.40 // -Glass frit and other glass, in the form of powder, granules or flakes

32.08 // Paints and varnishes ( including elements and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter

3208.10 // -based on polyesters

3208.20 // -based on Acrylic or Vinyl polymers

32.09 // Paints and varnishes ( including elements and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium.

3209.10 // -based on Acrylic or Vinyl polymers

3209.90 // -Other

32.14 // Glaziers' putty, grafing putty, resin cements, caulking compounds and other mastics; painters filings; non-refractory surfacing preparations for facades, indoor walls, floors, ceilings or the like.

3214.10 // -Glaziers' putty, grafting putty, resin cements, caulking compounds and other mastics; painters' fillings

3214.90 // -Other

32.15 // Printing ink, writing or drawing ink and other inks, whether or not concentrated or solid.

3215.1 // --Printing ink

3215.11 // --black

3215.19 // --Other

33.04 // Beauty or make-up preparations for the care of the skin ( other than medicaments), including sunscreen or sun tan preparations; manicure or pedicure preparations.

3304.99 // --Other

3304.999 // --- for retail sale

33.07 // Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilators and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included, prepared room deodorizers, whether or not perfumed or having disinfectant properties

3307.90 // --Other

3307.909 // --- for retail sale

34.05 // Polishes and creams, for footwear, furniture, floors, coach-work, glass or metal, scouring pastes and powders and similar preparations (whether or not in the form paper, wadding, felt, non woven, cellular plastics or cellular rubber, impregnated, coated or covered with such preparations) excluding waxes of heading No. 34.04.

3405.10 // -Polishes, creams and similar preparations for footwear or leather

3405.20 // -Polishes, creams and similar preparations for the maintenance of wooden furniture, floors or other woodwork

3405.30 // -Polishes and similar preparations for coatchwork, other than metal polishes

3405.40 // -Scouring pastes and powders and Other Scouring preparations

3405.90 // -Other

3406.00 // Candles, tapers and the like.

3605.00 // Matches, other than pyrotechnic articles of heading No. 36.04.

37.01 // Photographic plates and film in the flat, sensitized, unexposed of any material other than paper, paperboard or textiles; instant print film in the flat, sentisitised, unexposed, whether or not in packs

3701.10 // -for X-ray

3814.00 // Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers.

3820.00 // Anti-freezing preparations and prepared de-icing fluids.

39.05 // Polymers of vinyl acetate or of other vinyl esters, in primary forms; other polymers in primary forms

3905.1 // -polyvinyl acetate

3905.12 // --in aqueous dispersion

3905.19 // --Other

39.19 // Self-adhesive plates, sheets, film, foil, tape, strip and other flat shape, of plastics, whether or not in rolls

3919.90 // -Other

39.20 // Other plates, sheet, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials

3920.10 // --of polymers of Ethylene

3920.101 // --- foil 12 micron thick in rolls 50 to 90 mm wide

39.23 // Articles for the conveyance or packing of goods, of plastics, stoppers, lids, caps and other closures, of plastics

3923.2 // - sacks and bags (including cones)

3923.21 // --of polymers of Ethylene

3923.29 // --of Other plastics

3923.40 // -Spools, cops, bobbins and similar supports

3923.90 // - other

3923.901 // --- casks and tanks

3923.909 // --- Other

39.24 // Tableware, kitchenware, other household articles and toilet articles of plastic

3924.10 // -Tableware and kitchenware

3924.90 // -Other

39.25 // Builders ware of plastic, not elsewhere specified or included

3925.10 // -Reservoirs, tanks, vats and similar containers, of a capacity exceeding 300 l

3925.20 // -Doors, windows and their frames and thresholds for doors

3925.30 // -Shutters, blinds (including Venetian blinds) and similar articles and parts thereof

3925.90 // -Other

40.09 // Tubes, pipes and hoses, of vulcanized rubber other than hard rubber, with or without their fittings (for example, joints, elbows, flanges)

4009.10 // -Not reinforced or otherwise combined with other materials, without fittings

4009.20 // -Reinforced or otherwise combined only with metal, without fittings

4009.40 // -Reinforced or otherwise combined with other materials, without fittings

4009.50 // -with Fittings

4009.509 // ---other

42.02 // Trunks, suit-cases, vanity-cases, executive cases, brief cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers, travelling-bags, toilet bags, rucksacks, handbags, shopping-bags, wallets, purses, map-cases, cigarette cases, tobacco-pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder-boxes, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fibber or of paperboard or wholly or mainly covered with such materials or with paper

4202.1 // Trunks, suit cases, vanity cases, executive cases, brief cases, school satchels and similar containers

4202.11 // --With outer surface of leather, of composition leather or of patent leather

4202.12 // --with outer surface of plastics or of textile materials

4202.19 // --Other

4202.2 // Handbags, whether or not with shoulder strap, including those without handle

4202.21 //

4202.22 // --with outer surface of plastic sheeting or of textile materials

4202.29 // --Other

4202.3 // --Articles of a kind normally carried in the pocket or in the handbag

4202.31 // --With outer surface of leather, of composition leather or of patent leather

4202.32 // --with outer surface of plastic sheeting or of textile materials

4202.39 // --Other

4202.9 // -- Other

4202.91 // --With outer surface of leather, of composition leather or of patent leather

4202.92 // --with outer surface of plastic sheeting or of textile materials

4202.99 // --Other

43.02 // Tanned or dressed furskins (including heads, tails, paws and other pieces or cuttings), unassembled, or assembled (without the addition of other materials) other than those of heading No. 43.03.

4302.1 // -Whole skins , with or without head, tail or paws, not assembled

4302.11 // --Of mink

4302.12 // --Of rabbit or hare

4302.13 // --Of lamb, the following : Astrakhan, Broadtail, Caracul, Persian and similar lamb, Indian, Chinese, Mongolian or Tibetan lamb, whole, with or without head, tail or paws

4302.19 // --Other

4302.20 // -Heads, tails, paws and other pieces or cuttings, not assembled

4302.30 // -Whole skins and pieces or cuttings thereof, assembled

4304.00 // Artificial fur and articles thereof

4304.009 // --- articles of artificial fur

44.06 // Railway or tramway sleepers (cross-ties) of wood

4406.10 // --Not impregnated

4406.101 // --- of oak

4406.102 // --- of beech

4406.109 // --- Other

4406.90 // --Other

4406.901 // --- of oak

4406.902 // --- of beech

4406.909 // --- Other

44.18 // Builders joinery and carpentry of wood including cellular wood panels assembled parquet panels, shingles and shakes

4418.10 // -Windows, French-windows and their frames

4418.20 // -Doors and their frames and thresholds

4418.30 // -parquet panels

48.05 // Other uncoated paper and paperboard, in rolls or sheets not further worked or processed that are specified in Note 2 to this Chapter

4805.10 // -semi-Chemical fluting paper (corrugating medium)

48.11 // Paper, paperboard, cellulose wadding and webs of cellulose fibbers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or sheets, other than goods of the kind described in heading No. 48.03, 48.09 0r 48.10

4811.2 // -Gummed or adhesive paper and paperboard

4811.29 // --other

4811.299 // --- Other

4814 // Wallpaper and similar wall coverings, consisting of paper ;window transparencies of paper

4814.10 // -Ingrain paper

4814.20 // -Wallpaper and similar wall covering, consisting of paper coated or covered, on the face side, with a grained, embossed, colored, design-printed or otherwise decorated layer of plastics

4814.30 // -Wallpaper and similar wall coverings, consisting of paper covered, on the face side, with plaiting material, whether or not bound together in parallel strands or woven

4814.90 // -Other

4817.10 // -Envelopes

4817.20 // -Letter cards, plain postcards and correspondence cards

4817.30 // -Boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery

48.19 // Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or web of cellulose fibbers, box files, letter trays, and similar articles , of paper or paperboard of a kind used in offices, shops or the like

4819.10 // -Cartons, boxes and cases, of corrugated paper or paperboard

4819.20 // -Folding cartons, boxes and cases, of non-corrugated paper of

4819.209 // --- Other

4819.30 // -Sacks and bags, having a base of a width of 40 cm or more

4819.40 // -Other sacks and bags, including cones

4819.50 // -Other packing containers, including record sleeves

4819.501 // --- cylindrical boxes made of two or more materials

4819.60 // -Box files, letter trays, storage boxes and similar articles, of a kind used in offices, shops or the like

48.20 // Registers, account books, note books, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, exercise books, blotting-pads, binders (loose-leaf or other), folders, file covers, manifold business forms, interleaved carbons sets and other articles stationery of paper or paperboard; albums for stamps or for collections and book covers, of paper or paperboard

4820.10 // -Registers, account books, note books, order books, receipt books, letter pads, memorandum pads, diaries and similar articles

4820.20 // -Exercise books

4820.30 // -Binders (other than book covers), folders and file covers

4820.40 // -Manifold business forms and interleaved carbon sets

4820.50 // -Albums for samples or for collections

4820.90 // Other

4820.901 // --- business forms

4820.909 // --- Other

48.21 // Paper or paperboard labels of all kinds, whether or not printed

4821.10 // -printed

4821.90 // -Other

48.23 // Other paper, paperboard, cellulose wadding and webs of cellulose fibbers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibbers

4823.1 // Gummed or adhesive paper, in strips or rolls

4823.11 // --Self-Adhesive

4823.19 // --Other

4823.40 // -Rolls, sheets and dials, printed for self-recording apparatus

4823.5 // Other paper and paperboard, of a kind used for writing, printing or other graphic purposes

4823.51 // --Printed, embossed or perforated

4823.59 // --Other

4823.60 // -Trays, dishes, plates, cups and the like, of paper or paperboard

4823.70 // -Molded or pressed articles of paper pulp

4823.90 // -Other

4823.909 // ---Other

64.02 // Other footwear with outer soles and uppers of rubber or plastics

6402.1 // -Sports footwear

6402.19 // -- Other

6402.20 // -Footwear with upper straps or thongs assembled to the Sole by means of plugs

6402.30 // -Other footwear, incorporating a protective metal toe-cap

6402.9 // -Other footwear

6402.91 // -- Covering the ankle

6402.99 // -- Other

64.03 // Footwear with outer soles of rubber, plastics, leather or composion leather and uppers of leather

6403.1 // Sports footwear

6403.19 // -- Other

6403.20 // -Footwear with outer soles of leather, and uppers which consist of leather straps across the instep and around the big toe

6403.30 // -Footwear made on a base or platform of wood, not having an inner sole or a protective metal toe-cap

6403.40 // -Other footwear, incorporating a protective metal toe-cap

6403.5 // -Other footwear with outer soles of leather

6403.51 // -- Covering the ankle

6403.59 // -- Other

6403.9 // -Other footwear

6403.91 // -- Covering the ankle

6403.99 // -- Other

64.05 // Other footwear

6405.10 // - with uppers of leather or composition leather

6405.20 // - with uppers of textile materials

6504.00 // Hats and other headgear, plaited or made by assembling strips of any material, whether or not lined or trimmed.

65.05 // Hats and other headgear ,knitted or crocheted , made up from lace, felt or other textile fabric, in the piece ( but not in strips), whether or not lined or trimmed; hair-nets of any material, whether or not lined or trimmed.

6505.10 // - Hair-nets

6505.90 // - Other

65.06 // Other headgear, whether or not lined or trimmed

6506.10 // - protective headgear (helmets)

6506.9 // -Other

6506.91 // -- Of caoutchouc, rubber or plastics

6506.92 // -- of fur

6506.99 // -- of Other materials

6507.00 // Head-bands, linings, covers, hat foundations, hat frames, peaks and chinstraps, for headgear.

66.01 // Umbrellas and sun umbrellas ( including walking-stick umbrellas, garden umbrellas and similar umbrellas)

6601.10 // - Garden umbrellas and sun umbrellas

6601.9 // -Other

6601.91 // -- Telescopes

6601.99 // -- Other

6602.00 // Walking-sticks, seat-sticks, whips, riding-crops and the like.

66.03 // Parts, trimmings and accessories of articles other heading No. 66.01 or 66.02

6603.10 // - Handle

6603.20 // -Umbrella frames, including frames mounted on shafts (sticks)

6603.90 // - Other

68.02 // Worked monumental or building stone (except slate) and articles thereof, other than goods of heading No. 68.01; mosaic cubes and the like, of natural stone ( including slate), whether or not on a back; artificially colored granules, chippings and powder, of natural stone ( including slate)

6802.2 // -Other monumental or building stone and articles thereof simply cut or sawn with a flat or even surface

6802.21 // -- Marble, travertine and alabaster

6802.22 // -- Other limestone

6802.29 // -- Other stone

6802.9 // -Other

6802.91 // -- Marble, travertine and alabaster

6802.92 // -- Other limestone

6802.99 // -- Other stone

68.04 // Millstones, grindstones, grinding wheels and the like, without frameworks, for grinding, sharpening, polishing, trucing or cutting, hand sharpening or polishing stones and parts thereof , of natural stone, of agglomerated natural or artificial abrasives or of ceramics with or without parts of other materials

6804.2 // Other

6804.22 // --of Other Agglomerated abrasives or of ceramics

6804.30 // - Hand sharpening or polishing stones

6804.309 // --- of artificial materials

68.05 // Natural, of artificial abrasive powder or grain, on a base of textile material, of paper, of paperboard or of other materials, whether or not cut to shape or sewn or otherwise made up

6805.10 // - on a base of textile material

6805.20 // - on a base of paper or of paperboard

6805.30 // - on a base of Other materials

68.06 // Slag wool, rock wool and similar mineral wool; exfoliated vermiculite, expanded clays, foamed slag and similar expanded mineral materials; mixtures and articles of heat-insulating, sound-insulating or sound-absorbing mineral materials, other than those of heading No. 68.11 or 68.12 or of Chapter 69

6806.10 // - Slag wool, rock wool and similar mineral wool (including intermixtures thereof), in bulk, sheets or rolls

68.07 // Articles of asphalt or of similar material (for example, petroleum bitumen or coal tar pitch)

6807.10 // - in bundle

6807.90 // -Other

6807.909 // -- Other

6808.00 // Panels, boards, tiles, blocks and similar articles of vegetable fibber, of straw or of shavings, chips, particles, sawdust or other waste, of wood, agglomerated with cement, plaster or other mineral binders.

68.09 // Articles of plaster or of compositions based on plaster

6809.1 // -Boards, sheets, panels, tiles and similar articles not ornamented

6809.11 // --Faced or Reinforced with paper or paperboard only

6809.19 // --Other

6809.90 // - Other articles

68.12 // Fabricated asbestos fibbers; mixtures with a basis of asbestos or with a basis of asbestos and magnesium carbonate; articles of such mixtures or asbestos ( for example, thread, woven fabric; clothing, headgear, footwear, gaskets ) whether or not reinforced other than goods of heading No 68.11 or 68.13.

6812.10 // -Fabricated asbestos fibbers; Mixtures with a basis of asbestos or with a basis of asbestos and magnesium carbonate

6812.20 // -Yarn

6812.30 // -Cords and string, whether or not plaited

6812.40 // - Fabricated or Knitted material

6812.50 // -Clothing, clothing accessories, footwear and headgear

6812.60 // - Paper, millboard and felt

6812.70 // -Compressed asbestos fibber jointing, in sheets or rolls

6812.90 // -other

6812.909 // ---Other

68.13 // Friction material and articles thereof (for example, sheets, rolls, strips, segments, discs, washers, pads), not mounted, for brakes, for clutches or the like, with a basis of asbestos, of other mineral substances or of cellulose, whether or not combined with textile or other materials

6813.10 // - sheets and pads for brakes

6813.109 // ---other

6813.90 // - other

6813.909 // --- Other

69.04 // Ceramic building brick, flooring blocks, support or filler tiles and the like

6904.10 // - building bricks

6904.101 // --- solid, 250 x 120 x 65 dimensions

6904.102 // --- grate bricks, 250 x 120 x 65 dimensions

6904.103 // --- blocks, 290 x 190 x 190 dimensions

6904.104 // --- blocks, 250 x 190 x 190 dimensions

6904.105 // --- blocks, 250 x 250 x 140 dimensions

6904.109 // --- Other

6904.90 // -Other

6904.901 // --- ceiling filler tiles, 250 x 380 x 140 dimensions

6904.902 // --- ceiling filler tiles, 390 x 100 x 160 dimensions

6904.903 // --- support tiles, 250 x 120 x 40 dimensions

6904.909 // --- Other

69.05 // Roofing tiles, chimney-pots, cowls, chimney liners, architectural ornaments and other ceramic constructional goods

6905.10 // -roofing tiles

6905.101 // --- pressed tiles, 350 x 200 dimensions

6905.102 // --- pressed interlocking tiles, 340 x 200 dimensions

6905.103 // --- plain tiles, 380 x 180 dimensions

6905.104 // --- mediterranean tiles, 375 x 200 dimensions

6905.109 // --- Other

6905.90 // -Other

69.10 // Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar sanitary fixtures

6910.10 // - of porcelain or china

6910.90 // - other

70.05 // Float glass and surface ground or polished glass, in sheets, whether or not having and absorbent, reflecting or non-reflecting layer, but not otherwise worked

7005.30 // -Wired glass

70.17 // Laboratory, hygienic or pharmaceutical glassware, whether or not graduated or calibrated

7017.10 // -of fused quartz or Other fused Silica

7017.109 // ---other

7017.20 // -Of other glass having a linear coefficient of expansion not exceeding 5 x 10-6 per Kelvin within a temperature range of 0 C to 300 C

7017.90 // -Other

73.06 // Other tubes, pipes and hollow profiles ( for example, open seam or welded, riveted or similarly closed), of iron or steel

7306.20 // -Casing and tubing of a kind used in drilling for oil or gas

7306.202 // --- tubing of an external diameter less than 3 1/2"

7306.209 // --- Other

7306.50 // -Other, welded, of circular cross-section, of other alloy steel

7306.509 // ---other

7306.90 // -Other

73.08 // Structures ( excluding prefabricated buildings of heading No. 94.06) and parts of structures ( for example, bridges and bridge- sections, lock-gates, towers, lattice masts, roofs, roofing frame-works, doors and windows and their frames, and thresholds for doors; shutters, balustrades; pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures of iron or steel

7308.10 // -Bridges and bridge sections

7308.20 // -Towers and lattice masts

7308.40 // -Equipment for scaffolding, shuttering, propping or pitpropping

7308.409 // --- Other

7309.00 // Reservoirs, tanks, vats and similar containers for any material ( other than compressed or liquefied gas ), of iron or steel, of capacity exceeding 300 l, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment

7309.001 // --- reservoirs for the transport of goods

7309.009 // --- Other

7311.00 // Containers for compressed or liquefied gas, of iron or steel

7311.009 // --- Other

73.12 // Stranded wire, ropes cables, plaited bands, slings and the like, of iron or steel, not electrically insulated

7312.10 // -Stranded wire, ropes and cables

7312.109 // --- Other

7312.1099 // ---other

7312.90 // -Other

7312.909 // ---other

7313.00 // Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or not, and loosely twisted double wire, of a kind used for fencing, of iron or steel.

73.14 // Cloth (including endless bands), grill, netting and fencing, of iron or steel wire; expanded metal of iron or steel

7314.4 // - Other cloth, grill, netting and fencing:

7314.41 // -- plated or coated with zinc

7314.42 // --coated with plastics

7314.49 // --other

73.15 // Chain and parts thereof, of iron or steel

7315.1 // -Articulated link chain and parts thereof

7315.11 // --Roller chain

7315.12 // --Other chain

7315.19 // --Parts

7315.20 // -Skid chain

7315.8 // -Other chain

7315.81 // --Stud-link

7315.82 // --Other, welded link

7315.89 // --Other

7315.90 // -Other Parts

7316.00 // Anchors, grapnels and parts thereof, of iron or steel.

73.17 // Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading no. 8305) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper

7317.001 // --- for rails

7317.002 // --- for concrete

73.18 // Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel

7318.1 // -Threaded articles

7318.11 // --Coach screws

7318.12 // --Other wood screws

7318.13 // --Screw hooks and Screw rings

7318.14 // --Self-tapping screws

7318.19 // --Other

7318.2 // - non-threaded articles

7318.21 // --Spring washers and Other lock washers

7318.23 // --Rivets

7318.24 // --Cotters and cotter-pins

7318.29 // --Other

73.21 // Stoves, ranges, grates, cookers ( including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar non-electric domestic appliances, and parts thereof, of iron or steel

7321.11 // --for gas fuel or for both gas and Other fuels

7321.13 // --for Solid fuel

73.23 // Table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel

7323.10 // -Iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like

7323.9 // -Other

7323.93 // -- of stainless steel

7323.931 // --- vessels

7323.939 // --- Other

73.26 // Other articles of iron or steel

7326.1 // -Forged or stamped, but not further worked

7326.19 // --Other

7326.20 // -articles of iron or steel wire

7326.209 // ---other

7326.90 // -Other

7326.909 // --other

76.10 // Aluminum structures (excluding prefabricated buildings of heading No 94.06) and parts of structures ( for example, bridges and bridges section, towers, lattice masts, roofs, roofing framework, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns), aluminum plates, rods, profiles, tubes and the like, prepared for use in structures

7610.10 // -Doors, windows and their frames and thresholds for doors

7610.109 // -- other

7610.90 // -Other

7610.901 // --- elements prepared for use in structures

7610.909 // --- Other

7611.00 // Aluminum reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 l, whether or not lined or heat- insulated, but not fitted with mechanical or thermal equipment.

7611.001 // --- lined or heat-insulated

7611.009 // --- Other

76.14 // Stranded wire, cables, plaited bands and the like, of aluminum, not electrically insulated

7614.10 // -with steel core

7614.90 // -Other

8304.00 // Filing cabinets, card-index cabinets, paper trays, paper rests, pen trays, office-stamp stands and similar office or desk equipment, of base metal, other than office furniture of heading No. 94.03.

83.09 // Stoppers, cps and lids ( including crown cors, screw caps and pouring stoppers), capsules for bottles; threaded bungs, bung covers, seals and other packing accessories, of base metal

8309.90 // -Other

8309.902 // --- seals, not further worked

8309.903 // --- seals, worked

8309.909 // --- Other

84.02 // Steam or other vapor generating boilers (other than central heating hot wear boilers capable also of producing low pressure steam); super-heated water boilers

8402.1 // -Steam or other vapor generating boilers

8402.11 // --Watertube boilers with a steam production exceeding 45t per hour

8402.111 // --- main ship's steam boilers

8402.112 // --- other, with a steam production not exceeding 300 tons per hour

8402.119 // --- other, with a steam production exceeding 300 tons per hour

8402.12 // --Watertube boilers with a steam production not exceeding 45t per hour

8402.121 // --- main ship's steam boilers

8402.129 // --- Other

8402.19 // --Other vapor generating boilers, including hybrid boilers

8402.191 // --- main ship's steam boilers

8402.192 // --- firetube boilers

8402.193 // --- hot-oil boilers

8402.199 // --- Other

8402.20 // -Super-heated water boilers

8402.201 // --- fired with shopped wood

84.03 // Central heating boilers other than those of heading No. 84.02

8403.90 // -Parts

84.04 // Auxiliary plant for use with boilers of heading No. 84.02 or 84.03 (for example, economizers, super-heaters, soot removers, gas recovers), condensers for steam or the vapor power units

8404.90 // -Parts

84.06 // Steam turbines and other vapor turbines

8406.90 // -Parts

84.16 // Furnace burners for liquid fuel, for pulverized solid fuel or for gas; mechanical stokers; including their mechanical grates, mechanical ash discharges and similar appliances.

8416.20 // -Other furnace burners, including combination burners

8416.209 // --- Other

84.18 // Refrigerators, freezers and other refrigerating or freezing equipment, electric or other, heat pumps other than air conditioning machines or heading No. 84.15

8418.2 // -Refrigerators, household type

8418.21 // --Compression-type

8418.22 // --Absorption-type, electrical

8418.29 // --Other

8418.50 // -Other refrigerating or freezing chests, cabinets, display counters, show-cases and similar refrigerating or freezing furniture

84.19 // Machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, non electric

8419.1 // Instantaneous or storage water heaters, non-electric

8419.111 // --- for domestic use

8419.119 // --- Other

8419.191 // --- for domestic use

8419.199 // --- Other

8419.40 // -distilling or rectifying plant

8419.401 // ---fractionating columns for oxygen production

8419.409 // --- other

8419.8 // -Other machinery, plant and equipment

8419.81 // --for making hot drinks or for cooking or heating food

8419.819 // ---other

8419.89 // -- other

8419.899 // --- other

8419.8999 // ---- other

84.20 // Calendering or other rolling machines, other than for metals or glass, and cylinders thereof

8420.10 // \_Calendering or Other rolling machines

8420.101 // --- ironing machines

8420.1011 // ---- for domestic use

84.21 // Centrifuges, including centrifugal dryers, filtering or purifying machinery and apparatus, for liquids or gases

8421.1 // --Centrifuge, including centrifugal dryers

8421.121 // --- for domestic use

8421.2 // -Filtering or purifying machinery and apparatus for liquids

8421.29 // -- other

8421.299 // ---other

8421.3 // -Filtering or purifying machinery and apparatus for gases

8421.31 // --Intake air filters for internal combustion engines

8421.319 // --- other

8421.39 // -- other

8421.399 // --- other

8421.9 // - parts

8421.91 // -- of centrifuges, including centrifugal dryers

8421.919 // --Of centrifuges, including centrifugal dryers

84.23 // Weighing machinery (excluding balances of a sensitivity of 5 cg or better), including weight operated counting or checking machines; weighing machine weights of all kinds

8423.30 // -Constant weight scales and scales for discharging a predetermined weight of material into a bag or container, including hopper scales

8423.8 // - other weighing machinery

8423.81 // --Having a maximum weighing capacity not exceeding 30 kg

8423.82 // --Having a maximum weighing capacity exceeding 30 kg but not exceeding 5000 kg

8423.829 // --- other

8423.89 // -- other

8423.891 // --- weighbridges (railway or for trucks and vans)

8423.899 // --- Other

84.24 // Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines

8424.10 // -Fire extinguishers, whether or not charged

8424.109 // --- Other

8424.8 // -Other appliances

8424.81 // -- agricultural or horticultural

8424.819 // --- Other

84.27 // Fork-lift trucks; other works trucks fitted with lifting or handling equipment

8427.20 // -Other Self-propelled trucks

8427.209 // --- Other

8427.90 // -Other trucks

84.28 // Other lifting, handling, loading or unloading machinery (for example, lifts, escalators, conveyors, teleferics)

8428.20 // -pneumatic elevators and conveyors

8428.209 // --- Other

8428.3 // - other continuous-action elevators and conveyors for goods or materials

8428.39 // -- other

8428.399 // ---Other

84.32 // Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports-ground rollers

8432.10 // -ploughs

8432.2 // - harrows, scarifiers, cultivators, weeders and hoes

8432.21 // --DISC harrows

8432.29 // --Other

8432.30 // -Seeds, planters and transplanters

8432.301 // --- forest seedling planters

8432.309 // --- Other

8432.40 // -Manure spreaders and fertilizer distributors

8432.80 // -Other machinery

84.33 // Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading No. 84.37

8433.1 // -Mowers for lawns, parks or sports-grounds

8433.11 // --Powered, with the cutting device rotating in a horizontal plane

8433.19 // --Other

8433.20 // -Other mowers, including cutter bars for tractor mounting

84.38 // Machinery not specified or included elsewhere in this Chapter, for industrial preparation on manufacture of food drink, other than machinery for the extraction or preparation animal or fixed vegetable fats or oils

8438.50 // -machinery for the preparation of Meat or poultry

8438.60 // -Machinery for the preparation of fruits, nuts or vegetables

84.52 // Sewing machines, other than book-sewing machines of heading No 84.40; furniture; bases and covers specially designed for sewing machines; sewing machine needles

8452.10 // -Sewing machines of the household type

84.57 // Machining centers, unit construction machines ( single station) and multi-station transfer machines, for working metal

8457.20 // -unit construction machines (single station)

8457.30 // -Multi-station transfer machines

84.58 // Lathes ( including turning centers) for removing metal

8458.1 // - horizontal lathes

8458.19 // --Other

84.59 // Machine tools ( including way-type unit head machines) for drilling, boring, milling, threading or tapping by removing metal, other than lathes (including turning centers) of heading No. 84.58.

8459.2 // -Other drilling machines

8459.29 // --Other

8459.299 // --- Other

8459.6 // -Other milling machines

8459.61 // -- numerically controlled

8459.619 // --- Other

8459.69 // -- other

8459.699 // --- Other

84.60 // Machine-tools for deburring, sharpening, grinding, honing, aping, polishing or otherwise finishing metal or cermets by means of grinding stones, abrasives or polishing products, other than gear cutting, gear grinding or gear finishing machines of heading No. 84.61

8460.2 // Other grinding machines, in which the positioning in any one axis can be set up to an accuracy of at least 0,01mm

8460.29 // -- other

8460.292 // --- for crank shafts

8460.3 // -Sharpening (tool or cutter grinding) machines

8460.39 // --Other

84.61 // Machine tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off and other machine-tools working by removing metal or cermets, not elsewhere specified or included

8461.50 // -Sawing or cutting-off machines

84.81 // Taps, cocks, valves and similar appliances for pipes. , boiler shell, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves

8481.10 // pressure-reducing valves

8481.109 // --- other

8481.30 // -check valves

8481.309 // --- other

8481.40 // -safety or relief valves

8481.409 // --- other

8481.80 // -other appliances

8481.801 // --- regulating valves electromechanically or pneumatically powered;

8481.806 // --- fixtures for single pipe and double pipe central heating with nominal size 3/8" and more, but not exceeding 3/4"

85.01 // Electric motors and generators (excluding generating sets)

8501.3 // - other DC motors; DC generators

8501.31 // --Of an output not exceeding 750 W

8501.319 // ---other

8501.33 // --Of an output exceeding 75 kW but not exceeding 375 kW

8501.339 // ---other

8501.40 // -Other AC motors, single-phase

8501.409 // -- Other

8501.4099 // ---other

8501.5 // - other AC motors, multi-phase

8501.51 // -Of an output not exceeding 750W

8501.519 // --- Other

8501.5199 // ---other

8501.52 // --Of an output exceeding 750W but not exceeding 75kW

8501.529 // --- Other

8501.5299 // ---other

85.02 // Electric generating sets and rotary converters

8502.1 // -generating sets with compression-ignition internal combustion piston engines (diesel or semi-diesel engines)

8502.11 // --Of an output not exceeding 75 kVA

8502.119 // ---other

8502.12 // --Of an output exceeding 75 kVA but not exceeding 375 kVA

8502.129 // ---other

8502.13 // --Of an output exceeding 375 kVA

8502.139 // ---other

8502.20 // -Generating sets with spark-ignition internal combustion piston engines

8502.209 // ---other

8502.3 // - other generating sets

8502.39 // -Other

8502.391 // --- DC

8502.3919 // ---other

8502.399 // --- AC

8502.3999 // ---other

8502.40 // -Electric rotary Converters

8502.409 // ---other

85.04 // Electrical transformers, static converters ( for example, rectifiers) and inductors

8504.10 // -Ballasts for discharge lamps or tubes

8504.109 // --- other

8504.3 // -other transformers

8504.34 // -- having a power handling capacity exceeding 500 kVA

8504.349 // --- Other

8504.40 // -Static Converters

8504.409 // ---other

85.05 // Electro-magnets; permanent magnets and articles intended to become permanent magnets after magnetization; electro-magnetic or permanent magnet chucks, clamps and similar holding devices; electro-magnetic coupling, clutches and brakes; electro-magnetic lifting heads

8505.20 // -Electro-magnetic couplings, clutches and brakes

85.30 // Electrical signaling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields ( other than those of heading No. 86.08)

8530.10 // -equipment for railways or tramways

8530.80 // -Other equipment

85.39 // Electric filament or discharge lamps, including sealed beam lamp units and ultra-violet or infra-red lamps: arc-lamps

8539.2 // - other filament lamps, excluding ultra-violet or infra-red lamps

8539.29 // --Other

85.44 // Insulated ( including enameled or anodized) wire, cable ( including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibber cables, made up of individually sheathed fibbers, whether or not assembled with electrical conductors or fitted with electric conductors or fitted with connectors

8544.1 // - Winding wire

8544.111 // --- with a diameter not exceeding 2.50 mm

8544.20 // -co-axial cable and Other co-axial Electric conductors

8605.001 // --- ambulances

86.01 // Rail locomotives powder from an external source of electricity or by electric accumulators

8601.10 // -Powered from an external source of electricity or by electric accumulators

8601.102 // --- for ordinary gauge tracks

8601.109 // --- Other

86.02 // Other rail locomotives ; locomotive tenders

8602.10 // -diesel-Electric locomotives

8602.90 // -Other

8602.901 // --- Ex-proof diesel-Mechanical

8602.902 // --- diesel-Hydraulic

8602.909 // --- Other

86.03 // Self-propelled railway or tramway or tramway coaches, vans and trucks, other than those of heading No. 86.04.

8603.10 // -Powered from an external source of electricity

8603.101 // --- tramway rail-cars for passengers

8603.102 // --- passenger motor units

8603.103 // --- passenger motor cars

8603.109 // --- Other

8603.90 // -Other

8603.901 // --- passenger motor units

8603.902 // --- passenger motor cars

8603.909 // --- Other

8605.00 // Railway or tramway passenger coaches, not self-propelled: luggage vans, post office coaches and other special purpose railway or tramway coaches, not self propelled ( excluding those of heading No 86.04)

8605.002 // --- railway: passenger and post-office coaches, luggage vans and official coaches

8605.009 // --- Other

86.06 // Railway or tramway goods vans and wagons, not self-propelled

8606.10 // -Tank wagons and the like

8606.20 // -Insulated or refrigerated vans and wagons, other than those of subheading No. 8606.10

8606.30 // -Self-discharging vans and wagons, other than those of subheading No. 8606.10 or 8606.20

8606.9 // - other

8606.91 // --covered and closed

8606.911 // --- for transport of live fish

8606.919 // --- Other

8606.92 // --Open, with non-removable sides of a height exceeding 60 cm

8606.99 // --Other

8606.991 // --- tramway vans and wagons

8606.999 // --- Other

86.07 // Parts of railway or tramway locomotives or rolling -stock

8607.1 // - bogies, bissel-bogies, axles and wheels and parts thereof

8607.11 // --Driving bogies and bissel-bogies

8607.12 // --Other bogies and bissel-bogies

8607.30 // -Hooks and other coupling devices, buffers, and parts thereof

8609.00 // Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport

8609.009 // --- OTHER

87.01 // Tractors (other than tractors of heading No. 87.09)

8701.20 // -road tractors for semi trailers

8701.202 // ---used, of an engine power not exceeding 300 kW

8701.204 // ---used, of an engine power exceeding 300 kW

87.02 // Motor vehicles for the transport of ten or more persons, including the driver

8702.10 // - with Compression ignition internal combustion piston engine (diesel or semi diesel)

8702.101 // --- motor buses and coaches, new

8702.102 // --- motor buses and coaches, used

8702.90 // '- other

8702.901 // --- other motor buses and coaches, new

8702.902 // --- other motor buses and coaches, used

8702.903 // --- trolleybuses

8702.909 // --- Other

87.03 // Motor cars and other motor vehicles principally designed for the transport of persons ( other than those heading No. 87.02) including station wagons and racing cars

8703.2 // -Other vehicles, with spark ignition internal combustion reciprocating piston engine

8703.21 // -- of a cylinder capacity not exceeding 1000 cm3

8703.212 // --- motor cars, used

8703.219 // --- other, used

8703.22 // -- of a cylinder capacity exceeding 1000 cm3 but not exceeding 1500 cm3

8703.222 // --- motor cars, used

8703.229 // --- other, used

8703.23 // -- of a cylinder capacity exceeding 1500 cm3 but not exceeding 3000 cm3

8703.232 // --- motor cars, used

8703.235 // --- on-road/off-road, used

8703.239 // --- other, used

8703.24 // -- of a cylinder capacity exceeding 3000 cm3

8703.242 // --- motor cars, used

8703.245 // --- on-road/off-road, used

8703.249 // --- other, used

8703.3 // -Other vehicles with compression ignition internal combustion piston engine (diesel or semi diesel)

8703.31 // -- of a cylinder capacity not exceeding 1500 cm3

8703.312 // --- motor cars, used

8703.319 // --- other, used

8703.32 // -- of a cylinder capacity exceeding 1500 cm3 but not exceeding 2500 cm3

8703.322 // --- motor cars, used

8703.325 // --- on-road/off-road, used

8703.329 // --- other, used

8703.33 // - of a cylinder capacity exceeding 2500cm³

8703.332 // --- motor cars, used

8703.335 // --- on-road/off-road, used

8703.339 // --- other, used

8703.90 // -Other

8703.902 // --- motor cars, used

8703.909 // --- other, used

87.04 // Motor vehicles for the transport of goods

8704.2 // - other vehicles with compression ignition internal combustion piston engine (diesel or semi diesel)

8704.23 // -- g.v.w. exceeding 20 tons

8704.231 // --- tankers

8706.00 // Chassis fitted with engines, for the motor vehicles of headings No. 87.01 to 87.05

8706.002 // --- for tractors

87.07 // Bodies (including cabs) for the motor vehicles of headings No 87.01 to 87.05

8707.10 // -For the vehicles of heading No. 87.03

8707.90 // - other

8707.901 // --- for motor buses and trolleybuses

8707.902 // --- closed aluminum bodies for lorries

8707.909 // --- Other

87.08 // Parts and accessories of the motor vehicles of headings No 87.01 to 87.05

8708.10 // -Bumpers and Parts thereof

8708.2 // - other parts and accessories of bodies (including cabs)

8708.291 // --- aluminum sideboards for lorry bodies

8708.3 // - brakes and servo-brakes and parts thereof

8708.39 // --Other

8708.9 // - other parts and accessories

8708.92 // --Silencers and exhaust pipes

8708.93 // --Clutches and Parts thereof

8708.99 // -- other

8708.991 // --- joints, buckles and support guides except universal joints

8708.992 // --- other parts, worked

8708.999 // --- other parts, not further worked

87.11 // Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars

8711.10 // -With reciprocating internal combustion piston engine of a cylinder capacity not exceeding 50 cm3

8711.20 // With reciprocating internal combustion piston engine of a cylinder capacity exceeding 50cm3 but not exceeding 250cm3

8711.201 // --- new

8711.209 // --- used

8711.30 // With reciprocating internal combustion piston engine of a cylinder capacity exceeding 250cm3 but not exceeding 500cm3

8711.301 // --- new

8711.309 // --- used

8711.40 // With reciprocating internal combustion piston engine of a cylinder capacity exceeding 500cm3 but not exceeding 800cm3

8711.401 // --- new

8711.409 // --- used

8711.50 // With reciprocating internal combustion piston engine of a cylinder capacity exceeding 800 cm3

8711.509 // --- used

8711.90 // -Other

8711.901 // --- side-cars

8711.909 // --- Other

87.14 // Parts and accessories of vehicles of heading Nos. 87.11 to 87.13

8714.1 // - of motorcycles (including mopeds)

8714.11 // --Saddles

8714.9 // -Other

8714.92 // --wheel rims and spokes

8714.93 // --Hubs, other than coaster braking hubs and hub brakes, and free-wheel sprocket-wheels

8714.94 // --Brakes, including coaster braking hubs and hub brakes, and parts thereof

8714.95 // --Saddles

87.16 // Trailers and semi-trailers, other vehicles, not mechanically propelled; parts thereof

8716.20 // -Self-loading or Self-unloading trailers and semi-trailers for agricultural purposes

8716.209 // --- Other

8716.3 // -Other trailers and semi-trailers for the transport of goods

8716.31 // -- tankers trailers and Tanker semi-trailers

8716.311 // --- for liquefied gases

8716.40 // -Other trailers and semi-trailers

8716.80 // -Other vehicles

89.03 // Yachts and other vessels for pleasure or sports; rowing boats and canoes

8903.10 // -inflatable

8903.9 // -other

8903.92 // --Motorboats, other than outboard motorboats

8903.99 // --Other

94.01 // Seats (other than those of heading No 94.02) whether or not convertible into beds, and parts thereof.

9401.30 // -Swivel seats with variable height adjustment

9401.90 // - parts

9401.902 // --- of metals, excluding shock-absorbers

9401.903 // --- shock-absorbers

9401.904 // --- of plastics

94.04 // Mattress supports,; articles of bedding and similar furnishing ( for example, mattresses, quilts, eiderdowns, cushions, pouf's and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastic , whether or not covered

9404.10 // -Mattress supports

9404.2 // - mattress

9404.21 // --Of cellular rubber or plastics, whether or not covered

9404.29 // --of Other materials

9404.30 // -Sleeping bags

9404.90 // -Other

9406.00 // Prefabricated buildings

9406.001 // --- of plastics

9406.002 // --- of cement, of concrete or of artificial stone

9406.004 // --- of steel

9406.005 // --- of wood

9406.009 // --- Other

9602.00 // Worked vegetable or mineral carving material and articles of these material, molded or carved articles of wax, of stearin of natural gums or natural resins or of modeling pastes, and other molded or carved articles, not elsewhere specified or included; worked, unhardened gelatin (except gelatin of heading No 35.03 ) and articles of unhardened gelatin

9602.001 // --- gelatin capsules for pharmaceutical purposes

9602.002 // --- worked Vegetable or Mineral materials and articles of these materials

9602.009 // --- Other

96.06 // Buttons, press-fasteners, snap fasteners and press-studs button moulds and other parts of these articles; button blanks

9606.10 // -Press-fasteners, snap-fasteners and press-studs and parts therefor

9606.2 // - buttons

9606.21 // --Of plastics, not covered with textile material

9606.22 // --Of base metal, not covered with textile material

9606.29 // --Other

9606.30 // -Button moulds and Other Parts of buttons; Button blanks

96.07 // Slide fasteners and parts thereof

9607.1 // - slide fasteners

9607.11 // --Fitted with chain scoops of base metal

9607.19 // --Other

9607.20 // -Parts

96.08 // Ball point, felt tipped and other porous-tipped pens and markers, fountains pens, stylograph pens and other pens +; duplicating stylos; propelling or sliding pencils; pen-holders, pencil-holders and similar holders; parts ( including caps and clips) of the foregoing other than those of heading No. 96.09

9608.10 // -ball point pens

9608.20 // -felt tipped and other porous-tipped pens and markers

9608.209 // --- other

9608.3 // - fountain pens, stylograph pens and other pens

9608.31 // --Indian Ink drawing pens

9608.39 // --Other

9608.40 // -Propelling or sliding pencils

9608.50 // -sets of articles from two or more of the foregoing subheadings

9608.60 // -Refills for ball point pens, comprising the ball point and ink-reservoir

9608.9 // - other

9608.91 // -- pen nibs and nib points

9608.911 // --- golden Pen nibs for writing

9608.912 // --- Other Pen nibs for writing

9608.913 // --- Pen nibs for drawing

9608.919 // --- nib points

9608.99 // -- other

9608.992 // --- refills for felt tipped pens

9608.999 // --- Other

96.09 // Pencils (other than pencils of heading No.96.08), crayons, pencil leads, pastels, drawing charcoals, writing or drawing chalks and tailors chalks.

9609.10 // -Pencils and crayons, with leads encased in a rigid sheath

9609.20 // -Pencil leads, black or colored

9609.90 // -Other

ANNEX II

Croatian Tariff concession for Community Industrial products (article 18.3)

Duty rates will be reduced as follows:

- on the date of entry into force of the Agreement, duty shall be reduced to 70% of the basic duty

- on 1 January 2003, duty shall be reduced to 50% of the basic duty

- on 1 January 2004, duty shall be reduced to 40% of the basic duty

- on 1 January 2005, duty shall be reduced to 30% of the basic duty

- on 1 January 2006, duty shall be reduced to 15% of the basic duty

- on 1 January 2007, the remaining duties shall be abolished

HS 6+ // Description

25.22 // Quicklime, slaked lime and hydraulic lime, other than calcium oxide and hydroxide of heading No. 28.25

2522.10 // -Quicklime

2522.20 // -Slaked lime

2522.30 // -Hydraulic lime

25.23 // Portland cement, aluminous cement, slag cement, supersulfate cement and similar hydraulic cement, whether or not colored or in the form of clinkers

2523.10 // - cement clinkers

2523.109 // --- Other

2523.2 // - Portland cement

2523.29 // -- other

2523.292 // --- Portland Cement with additions

2523.294 // --- sulfate resistant Cement

2523.295 // --- Cement with low temperature of hydration

2523.296 // --- metallurgical Cement and Cement for blast furnaces

2523.299 // --- Other

2523.30 // - Aluminous cement

2523.301 // --- aluminous cement with content Al2O3 not exceeding 50%

2523.90 // -Other Hydraulic cements

2710.00 // Petroleum oils and oils obtained from bituminous minerals other than crude; preparations not elsewhere specified or included containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations

2710.001 // ---motor petrol and other light oils:

2710.0012 // ---- leadless motor petrol

2710.0013 // ---- Other motor petrols

2710.0019 // ---- Other light oils and products based on light oils

2710.002 // --- kerosene and other medium oils

2710.0024 // ---- other petroleum

2710.0029 // ---- other medium oils and preparations on the basis of those oils

2710.003 // ---heavy oils except waste and intended for further manufacturing

2710.0031 // ---- gas oils

2710.0032 // ---- extra light and light special fuel oil

2710.009 // ---other

2710.0099 // ---- waste oils

2807.00 // Sulfuric acid; oleum

2807.001 // --- sulfuric acid, pro analysis

2808.00 // Nitric acid; sulphonitric acids.

2808.001 // --- nitric acid, pro analysis

31.02 // Mineral or chemical fertilizers, nitrogenous

3102.90 // -Other, including mixtures not specified in the foregoing subheadings

31.05 // Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium; other filtilisers, goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg

3105.10 // -Goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg

32.06 // Other coloring matter; preparations as specified in Note 3 to this Chapter, other than those of heading No. 32.03, 32.04 or 32.05; inorganic products of a kind used as luminophores, whether or not chemically defined

3206.20 // -pigments and preparations based on titanium dioxide:

3206.201 // --- Chromium greens

3206.202 // --- zinc yellows (zinc chromate)

3206.209 // --- Other

3206.4 // -Other coloring matter and other preparations:

3206.49 // --other

3206.492 // --- concentrated dispersions of pigments

3206.494 // --- based on carbon black

33.04 // Beauty or make-up preparations for the care of the skin ( other than medicaments), including sunscreen or sun tan preparations; manicure or pedicure preparations.

3304.10 // --Lip make up preparations

3304.109 // --- for retail sale

3304.20 // --Eye make-up preparations

3304.209 // --- for retail sale

3304.30 // --Manicure or pedicure preparations

3304.309 // --- for retail sale

33.05 // Preparations for use on the hair

3305.10 // --Shampoos

3305.109 // --- for retail sale

3305.20 // --preparations for permanent waving or straightening

3305.209 // --- for retail sale

3305.30 // --Hair lacquers

3305.309 // --- for retail sale

3305.90 // --Other

3305.909 // --- for retail sale

33.06 // Preparations for oral or dental hygiene, including denture fixative pastes and powders; yarn used to clean between the teeth (dental floss), in individual retail packages.

3306.10 // --Dentifrices

3306.109 // --- for retail sale

3306.90 // --Other

3306.909 // --- for retail sale

33.07 // Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilators and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included, prepared room deodorizers, whether or not perfumed or having disinfectant properties

3307.10 // Pre-shave, shaving or after-shave preparations

3307.109 // --- for retail sale

3307.20 // --personal deodorants and antiperspirants

3307.209 // --- for retail sale

3307.30 // --Perfumed bathsalts and Other bath preparations

3307.309 // --- for retail sale

3307.4 // Preparations for perfuming or deodorizing rooms, including odoriferous preparations used during religious rites

3307.49 // --Other

3307.499 // --- for retail sale

34.02 // Organic surface-active agents (other than soap); surface-active preparations, washing preparations (including auxiliary washing preparations ) and cleaning preparations, where or not containing soap, other than those of heading No. 34.01.

3402.1 // --Organic surface-active agents, whether or not put up for retail sale

3402.11 // --Anionic

3402.111 // --- alkylarylsulphonates

3402.112 // --- polyglycol ether lauryl alcohol sulphonate

3402.20 // --preparations put up for retail sale

3402.201 // --- in powder for washing

3402.209 // --- Other

3402.90 // -Other

3402.901 // --- in powder for washing

38.08 // Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulfur-treated bands, wicks and candles, and fly -papers)

3808.20 // -Fungicides

3808.209 // --- other fungicides, except for plant protection

39.17 // Tubes, pipes and hoses, and fittings thereof ( for example, joints, elbows, flanges) of plastics

3917.2 // -Tubes, pipes and hoses, rigid

3917.21 // --of polymers of Ethylene

3917.211 // --- for submarine water line

3917.219 // --- Other

3917.2199 // ---other

3917.22 // --of polymers of propylene

3917.229 // ---other

3917.23 // --of polymers of Vinyl chloride

3917.239 // ---other

3917.29 // --of Other plastics

3917.299 // ---other

3917.31 // --Flexible tubes, pipes and hoses, having a minimum burst pressure of 27.6 MPa

3917.319 // ---other

3917.32 // --Other, not reinforced or otherwise combined with other materials, with fittings

3917.329 // --Other

3917.33 // --Other, not reinforced or otherwise combined with other materials, with fittings

3917.339 // ---other

3917.39 // --Other

3917.399 // ---other

3917.40 // -Fittings

3917.409 // ---other

39.18 // Floor coverings of plastics, whether or not self-adhesive, in rolls or in the form of tiles; wall or ceiling coverings of plastics, as defined in Note 9 to this Chapter

3918.10 // -of polymers of Vinyl chloride

3918.90 // -of Other plastics

39.19 // Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls

3919.10 // -In rolls of a width not exceeding 20 cm

3919.101 // --- of Polypropylene

3919.102 // --- of polyvinyl chloride

3919.103 // --- of polyethylene

3919.109 // --- Other

39.20 // Other plates, sheet, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials

3920.10 // - of polymers of Ethylene

3920.109 // --- Other

3920.30 // -of polymers of Styrene

3920.4 // -of polymers of vinyl chloride

3920.42 // --Flexible

40.12 // Retreated or used pneumatic tires of rubber; solid or cushion tires, interchangeable tires treads and tire flaps, of rubber

4012.10 // -Retreaded tires

4012.109 // ---other

4012,20 // -used pneumatic tires

4012.209 // ---other

4012,90 // - other

4012.909 // --- other

44.09 // Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges of faces, whether or not planed, sanded or finger-jointed

4409.20 // - non-Coniferous

4409.202 // --- of Other wood

4409.203 // --- parquet flooring of beech

4409.204 // --- parquet flooring of Other deciduous

4409.209 // --- Other

48.05 // Other uncoated paper and paperboard, in rolls or sheets not further worked or processed that are specified in Note 2 to this Chapter

4805.2 // -Multi-ply paper and paperboard

4805.29 // --Other

4805.291 // --- testliner-brown

4805.299 // --- Other

4805.30 // -sulfite wrapping paper

4805.60 // -Other paper and paperboard, weighing 150g/m2 or less

4805.601 // --- fluting from wastepaper

4805.609 // ---other

4805.6091 // ---- common wrapping paper

4805.6099 // ---- Other

4805.70 // -Other paper and paperboard, weighing more than 150 g/m, but less than 225 g/m.

48.08 // Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading No. 48.03.

4808.10 // -Corrugated paper and paperboard, whether or not perforated

64.01 // Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes

6401.10 // - Footwear, incorporating a protective metal toe-cap

6401.9 // -Other footwear

6401.91 // --Covering the knee

6401.92 // --Covering the ankle but Not Covering the knee

6401.99 // -- Other

64.05 // Other footwear

6405.90 // -Other

68.10 // Articles of cement, of concrete or of artificial stone whether or not reinforced

6810.1 // -tiles, flagstones, bricks and similar articles

6810.11 // -- Blocks and bricks for building

6810.19 // -- Other

6810.9 // - Other articles

6810.91 // --Prefabricated structural components for building or civil engineering

6810.99 // -Other

68.11 // Articles of asbestos-cement, of cellulose fibber-cement or the like

6811.10 // - Wavy flagstones

6811.20 // -Other sheets, panels, tiles and similar articles

6811.30 // - Tubes, pipes and tube or pipe fittings

6811.90 // - Other articles

69.08 // Glazed ceramic flags and paving, hearth or wall tiles; glazed ceramic mosaic cubes and the like, w whether or not on a backing

6908.10 // -Tiles, cubes and similar articles, whether or not rectangular, the largest surface area of which is capable of being enclosed in a square the side of which is less than 7 cm

70.03 // Cast glass and rolled glass, in sheets or profiles, whether or not having an absorbent, reflecting or non-reflecting layer, but not otherwise worked

7003.1 // -Non-wired sheets

7003.12 // --Colored throughout the mass (body tinted), opacified, flashed or having an absorbent, reflecting or non-reflecting layer

7003.19 // --Other

7003.199 // --- Other

7003.20 // -Wired sheets

7003.30 // -Profiles

70.07 // Safety glass, consisting of toughened (tempered) or laminated glass

7007.1 // -Toughened (tempered) safety glass:

7007.11 // --Of size and shape suitable for incorporation in vehicles, aircraft, spacecraft or vessels

7007.19 // -Other

7007.2 // -Laminated safety glass

7007.21 // --Of size and shape suitable for incorporation in vehicles, aircraft, spacecraft or vessels

7007.219 // ---other

7007.29 // --Other

70.10 // Carboys, bottles, flasks, jars, pots, phials, ampoules and other containers of glass, of a kind use d for the conveyance or packing of goods; preserving jars of glass stoppers, lids and other closures, of glass

7010.10 // -Ampoules

7010.20 // -Stoppers, lids and other closures

7010.9 // -Other, of a capacity:

7010.91 // --Exceeding 1 l

7010.92 // --Exceeding 0.33 l but not exceeding 1 l

73.02 // Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods other crossing pieces, sleepers (cross-ties), fish plates, chairs, chair wedges, sole plates ( base plates), rail clips, bedhplates, ties and other material specialized for jointing or fixing rails

7302.40 // -fish-plates and Sole plates

7302.90 // -Other

73.04 // Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron)

7304.10 // -line pipe of a kind used for oil or gas pipelines

7304.2 // -Casing, tubing and drill pipe, of a kind used in drilling for oil or gas:

7304.29 // --Other

7304.292 // --- casing of other steels of an external diameter less than 16"

7304.295 // --- Other tubing of Other steels

7304.299 // --- Other

7304.3 // -Other, of circular cross section, of iron or non alloy steel

7304.31 // --cold drawn or cold rolled ( cold reduced)

7304.319 // --- Other

7304.3199 // --- other

7304.39 // --Other

7304.399 // --- other

73.06 // Other tubes, pipes and hollow profiles ( for example, open seam or welded, riveted or similarly closed), of iron or steel

7306.10 // -line pipe of a kind used for oil or gas pipelines

7306.20 // - Casing and tubing of a kind used in drilling for oil or gas

7306.201 // --- casing of an external diameter not exceeding 16"

7306.30 // -Other, welded, of circular cross-section, of iron or non-alloy steel

7306.309 // ---other

7306.60 // - Other, welded, of non-circular cross-section

7306.601 // --- of iron and steel of square or rectangular cross-section not exceeding 280 mm

7306.6019 // ---other

73.10 // Tanks, casks, drums, cans, boxes and similar containers for any material ( other than compressed or liquefied gas ), of iron or steel, of capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment.

7310.10 // -Of a capacity of 50 l or more

7310.2 // Of a capacity of less than 50 l

7310.21 // --Cans which are to be closed by soldering or crimping

7310.29 // --Other

7310.299 // ---other

73.14 // Cloth (including endless bands), grill, netting and fencing, of iron or steel wire; expanded metal of iron or steel

7314.20 // -Grill, netting and fencing, welded at the intersection, of wire with a maximum cross-sectional dimension of 3 mm or more and having a mesh size of 100 cm2 or more

73.21 // Stoves, ranges, grates, cookers ( including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar non-electric domestic appliances, and parts thereof, of iron or steel

7321.1 // -Cooking appliances and plate warmers

7321.12 // --for liquid fuel

7321.8 // -Other appliances

7321.81 // --for gas fuel or for both gas and Other fuels

7321.82 // --for liquid fuel

7321.83 // --for Solid fuel

7321.90 // -Parts

73.22 // Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors (including distributors which can also distribute fresh or conditioned air), not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel

7322.1 // Radiators and parts thereof

7322.11 // --of cast iron

7322.19 // --Other

7322.90 // -Other

7322.909 // --- other

76.04 // Aluminum bars, rods and profiles

7604.10 // -Of aluminum, not alloyed

7604.2 // - Of aluminum alloys

7604.21 // --Hollow Profiles

7604.211 // --- surface protected (painted, varnished or coated with plastics)

7604.219 // --- Other

7604.29 // --Other

76.05 // Aluminum wire

7605.1 // -Of aluminum, not alloyed

7605.11 // --Of which the maximum cross-sectional dimension exceeds 7 mm

7605.119 // --- Other

7605.19 // --Other

76.06 // Aluminum plates, sheets and strip, of a thickness exceeding 0,2mm

7606.1 // -Rectangular (including square)

7606.11 // --Of aluminum, not alloyed

7606.119 // --- Other

7606.12 // --of aluminum alloys

7606.122 // --- aluminum sheets surface worked (painted, varnished or coated with plastics)

7606.129 // --- Other

7606.9 // -Other

7606.91 // --Of aluminum, not alloyed

7606.92 // --of aluminum alloys

76.07 // Aluminum foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness ( excluding any backing) not exceeding 0,2 mm

7607.1 // -Not backed

7607.19 // --Other

7607.199 // --- Other

7607.20 // -Backed

7607.209 // --- other

76.08 // Aluminum tubes and pipes

7608.10 // -Of aluminum, not alloyed

7608.109 // --- other

7608.20 // -of aluminum alloys

7608.209 // --other

7609.00 // Aluminum tube or pipe fittings (for example, couplings, elbows, sleeves).

76.16 // Other articles of aluminum

7616.9 // -Other

7616.99 // --Other

7616.991 // --- radiators

7616.999 // --- Other

82.15 // Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware

8215.10 // -sets of assorted articles containing at least one article plated with precious metal

8215.20 // -Other sets of assorted articles

8215.9 // -Other

8215.91 // --plated with precious metal

8215.99 // --Other

83.09 // Stoppers, caps and lids ( including crown cors, screw caps and pouring stoppers), capsules for bottles; threaded bungs, bung covers, seals and other packing accessories, of base metal

8309.10 // -Crown Corks

8309.90 // -Other

8309.901 // --- Screw caps

83.11 // Wire, rods, tubes, plates, electrodes and similar products of base metal or of metal carbides, coated or cored with flux material, of a kind used for soldering, brazing, welding or deposition of metal or of metal carbides; wire and rods, of agglomerated base metal powder, used for metal spraying

8311.10 // -Coated electrodes of base metal, for electric arc-welding

8311.20 // -Cored wire of base metal, for electric arc-welding

8311.30 // -Coated rods and cored wire, of base metal, for soldering, brazing or welding by flame

8311.90 // -Other, including parts

84.03 // Central heating boilers other than those of heading No. 84.02

8403.10 // -Boilers

8403.101 // --- using gas or gas and Other fuel

8403.102 // --- using liquid fuel

8403.103 // --- using Solid fuel

8403.109 // --- Other

84.04 // Auxiliary plant for use with boilers of heading No. 84.02 or 84.03 (for example, economizers, super-heaters, soot removers, gas recovers), condensers for steam or the vapor power units

8404.10 // -Auxiliary plant for use with boilers of heading No. 84.02 or 84.03

8404.101 // --- for use with boilers of heading No 8402

8404.109 // --- for use with boilers of heading No 8403

8404.20 // -Condensers for steam or Other vapor power units

84.06 // Steam turbines and other vapor turbines

8406.10 // -Turbines for marine propulsion

8406.101 // --- condensation turbines of a minimum output of 6 000 kW

8406.109 // --- Other

8406.8 // -Other turbines

8406.81 // --Of an output exceeding 40 MW

8406.811 // --- for driving of electric generators of a minimum output of 200.000 kW in power stations or in heat and power stations

8406.819 // --- Other

8406.82 // -- Of an output not exceeding 40 MW

8406.821 // --- condensation turbines of a minimum output of 6 000 kW

8406.829 // --- Other

84.08 // Compression -ignition internal combustion piston engines (diesel or semi -diesel engines)

8408.10 // -marine propulsion engines

8408.102 // --- with a engine power exceeding 150 kW but not exceeding 400 kW

8408.109 // --- other

84.13 // Pumps for liquids, whether or not fitted with a measuring device, liquid elevators

8413.11 // --Pumps for dispensing fuel or lubricants, of the type used in filling-stations or in garages

8413.30 // -Fuel, lubricating or cooling medium pumps for internal combustion piston engines

8413.309 // ---other

8413.60 // --Other rotary positive displacement

8413.601 // --- helicoidal monopumps for aggressive Chemical materials

8413.602 // --- gear pumps for dosing of polymer materials for extruding of man-made textile monofilaments, for aggressive materials

8413.603 // --- gear pumps for Hydraulic fluid power

8413.6039 // ---other

8413.604 // --- Screw pumps

8413.6049 // ---other

8413.605 // --- vane pumps

8413.6059 // ---other

8413.609 // --- Other

8413.6099 // ---other

8413.70 // --Other centrifugal pumps

8413.701 // --- multistage mud pumps for oil and gas wells

84.14 // Air or vacuum pumps, air or other gas compressors and fans, ventilating or recycling hoods incorporating a fan, whether or not fitted with filters

8414.20 // -Hand- or foot-operated air pumps

8414.209 // ---other

84.16 // Furnace burners for liquid fuel, for pulverized solid fuel or for gas; mechanical stokers; including their mechanical grates, mechanical ash discharges and similar appliances.

8416.10 // -furnace burners for liquid fuel

8416.101 // --- with capacity not exceeding 2 kg per hour

8416.102 // --- with capacity exceeding 300 kg per hour

8416.109 // --- Other

8416.20 // -Other furnace burners, including combination burners

8416.201 // --- with capacity not exceeding 84 MJ per hour

8416.202 // --- for Solid fuels

8416.30 // --Mechanical stokers, including their mechanical grates, mechanical ash dischargers and similar appliances

8416.301 // --- Mechanical ash dischargers

8416.309 // --- Other

8416.90 // -Parts

84.24 // Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines

8424.20 // -Spray guns and similar appliances

8424.30 // -steam or sand blasting machines and similar jet projecting machines

8424.8 // -Other appliances

8424.81 // -Agricultural or horticultural

8424.811 // --- sprayers for vineyards

8424.813 // --- other atomizers not exceeding 400 l

84.26 // Ship's derricks; cranes, including cable cranes; mobile lifting frames, straddle carriers and works truck fitted with a crane

8426.1 // -Overhead travelling cranes, transporter cranes, gantry cranes, bridge cranes, mobile lifting frames and straddle carriers

8426.11 // -- overhead travelling cranes on fixed support

8426.111 // --- for melting plants

8426.119 // --- Other

8426.20 // -Tower cranes

8426.209 // --- Other

8426.9 // - other machinery

8426.91 // --designed for mounting on road vehicles

8426.99 // --Other

8426.999 // ---other

84.28 // Other lifting, handling, loading or unloading machinery (for example, lifts, escalators, conveyors, teleferics)

8428.10 // -Lifts and skip hoists

8428.103 // --- other passenger or good lifts for housing, business and industrial buildings and for hospitals

8428.3 // - other continuous-action elevators and conveyors for goods or materials

8428.33 // --Other, belt type

8426.339 // ---other

8428.40 // -Escalators and moving walkways

8428.90 // -Other machinery

8428.901 // --- handling machinery for industry of bricks and Roofing tiles

8428.909 // --- Other

8428.9099 // ---other

84.29 // Self-propelled bulldozers, angledozers, grades, levelers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers

8429.5 // - mechanical shovels, excavators and shovel loaders

8429.51 // --Front-end shovel loaders

8429.512 // --- on wheels, with a engine power not exceeding 184 kW

84.33 // Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading No. 84.37

8433.5 // -Other harvesting machinery, threshing machinery

8433.51 // -Combine harvester-threshers

8433.511 // --For grain and maize

8433.5112 // ---- with engines power exceeding 45 kW but not exceeding 167 kW

84.58 // Lathes ( including turning centers) for removing metal

8458.1 // - horizontal lathes

8458.11 // --Numerically controlled

84.59 // Machine tools ( including way-type unit head machines) for drilling, boring, milling, threading or tapping by removing metal, other than lathes (including turning centers) of heading No. 84.58.

8459.10 // -Way-type unit head machines

8459.5 // - milling machines, knee-type

8459.51 // --Numerically controlled

84.60 // Machine-tools for deburring, sharpening, grinding, honing, aping, polishing or otherwise finishing metal or cermets by means of grinding stones, abrasives or polishing products, other than gear cutting, gear grinding or gear finishing machines of heading No. 84.61

8460.2 // other grinding machines in which the positioning in any one acis can be set up to an accuracy of at least 0,01 mm

8460.29 // -Other

8460.291 // --- for ball or Roller bearing Parts

84.81 // Taps, cocks, valves and similar appliances for pipes. , boiler shell, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves

8481.10 // -pressure-reducing valves

8481.101 // --- pressure-regulating valves for compressed gas cylinders

8481.30 // -check valves

8481.301 // --- vacuum baskets with valve

8481.40 // - safety or relief valves

8481.401 // --- with normal size of 15 mm and more but not exceeding 1200 mm and with pressure rating not exceeding 16 Mpa

8481.80 // -other appliances

8481.802 // --- gate valves and butterfly valves with nominal size 25 mm and more but not exceeding 1 200 mm and with pressure rating "not exceeding 4 MPa; forged gate valves with nominal size 1/2" and more but not exceeding 2" and with pressure-rating" not exceeding 16 Mpa

8481.803 // --- shut-off valves with nominal size 8 mm and more but not exceeding 400 mm and with pressure rating not exceeding 4 MPa; "forged shut-off valves with nominal size 1/2" and more but not exceeding 2" and with pressure rating not exceeding 16"MPa; shut-off

8481.804 // --- ball taps with nominal size 8 mm and more but not exceeding 700 mm and with pressure rating not exceeding 10 MPa

8481.805 // --- underground and surface hydrants, valves and drilling saddles for household connections, air inlet-relief valves (with two balls), inlet strainers with valve ball bearings

85.01 // Electric motors and generators ( excluding generating sets)

8501.3 // - other DC motors; DC generators

8501.32 // --Of an output exceeding 750 W but not exceeding 75 kW

8501.329 // ---other

8501.34 // --Of an output exceeding 375 kW

8501.349 // ---other

8501.40 // -Other Ac motors, single phase

8501.4099 // --- other

8501.5 // - other AC motors, multi-phase

8501.51 // -Of an output not exceeding 750 W

8501.511 // --- motors with reduction gear for Doors opening and closing

8501.53 // --Of an output exceeding 75 kW

8501.539 // ---other

8501.6 // - AC generators (alternators)

8501.61 // --Of an output not exceeding 75 kVA

8501.619 // ---other

8501.62 // --Of an output exceeding 75 kVA but not exceeding 375 kVA

8501.629 // ---other

8501.63 // --Of an output exceeding 375 kVA but not exceeding 750 kVA

8501.639 // ---other

8501.64 // --Of an output exceeding 750 kVA

85.04 // Electrical transformers, static converters (for example, rectifiers ) and inductors

8504.2 // - liquid dielectric transformers

8504.21 // --Having a power handling capacity not exceeding 650 kVA

8504.211 // --- measuring transformers

8504.219 // --- Other

8504.22 // --Having a power handling capacity exceeding 650 kVA but not exceeding 10,000 kVA

8504.23 // --Having a power handling capacity exceeding 10,000 kVA

8504.3 // - other transformers

8504.32 // --Having a power handling capacity exceeding 1 kVA but not exceeding 16 kVA

8504.329 // ---other

8504.33 // -Having a power handling capacity exceeding 16 kVA but not exceeding 500 kVA

8504.331 // --- of a capacity exceeding 20 kVA, for electric ovens for metal ores melting

8504.339 // --- Other

8504.3399 // ---other

8504.34 // -Having a power handling capacity exceeding 500 kVA

8504.341 // --- for Electric ovens for ores melting

8504.50 // -Other inductors

8504.509 // ---other

85.16 // Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electro-thermic hair dressing apparatus (for example hair dryers, hair curlers, curling tong heaters) and hand dryers; electric smoothing irons; other electro-thermic appliances of a kind used for domestic purposes; electric heating resistors, other than those of heading No 85.45

8516.10 // -Electric Instantaneous or Storage water heaters and immersion heaters

8516.2 // -electric space heating apparatus and electric soil heating apparatus

8516.29 // --Other

8516.80 // -Electric heating resistors

8516.809 // ---other

85.25 // Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders

8525.10 // -Transmission apparatus

8525.101 // --- for radio-broadcasting

85.35 // Electrical apparatus for switching or protecting electrical circuits or for making connections to or in electrical circuits ( for example, switches, fuses, lightning arresters, voltage limiters, surge suppressors, plugs, junction boxes) for a voltage exceeding 1.000 volts

8535.2 // - automatic circuit breakers

8535.21 // --For a voltage of less than 72.5 kV

8535.29 // --Other

8535.30 // -isolating switches and make-and -break switches

8535.301 // --- isolating switches

8535.309 // --- make-and-break switches

85.36 // Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits ( for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders, junction boxes), for a voltage not exceeding 1,000 volts

8536.10 // -fuses

8536.20 // -Automatic circuit breakers

8536.30 // -Other apparatus for protecting electrical circuits

8536.4 // - relays

8536.49 // --Other

8536.50 // -Other switches

8536.509 // ---other

8536.6 // - lamps-holders, plugs and sockets

8536.69 // -- Other

8536.699 // ---other

85.37 // Boards, panels, consoles, desks, cabinets and other bases equipped with two or more apparatus of heading No. 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus, other than switching apparatus of heading No. 85.17

8537.10 // -For a voltage not exceeding 1 000 V

8537.20 // -For a voltage exceeding 1 000 V

85.38 // Parts suitable for use solely or principally with the apparatus of heading No. 85.35, 85.36 or 85.37

8538.10 // -Boards, panels, consoles, desks, cabinets and other bases for the goods of heading No. 85.37, not equipped with their apparatus

85.39 // Electric filament or discharge lamps, including sealed beam lamp units and ultra-violet or infra-red lamps: arc-lamps

8539.2 // - other filament lamps, excluding ultra-violet or infra-red lamps

8539.22 // --Other, of a power not exceeding 200 W and for a voltage exceeding 100 V

8539.3 // - discharge lamps, other than ultra-violet lamps

8539.32 // --Mercury or sodium vapor lamps; metal halide lamps

8539.39 // --Other

85.44 // Insulated ( including enameled or anodized) wire, cable ( including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibber cables, made up of individually sheathed fibbers, whether or not assembled with electrical conductors or fitted with electric conductors or fitted with connectors

8544.4 // - other electric conductors, for a voltage not exceeding 80V

8544.41 // --Fitted with connectors

8544.419 // ---other

8544.49 // --Other

8544.491 // --- insulated with paper

8544.4919 // ---other

8544.492 // --- insulated with plastics

8544.4929 // ---other

8544.499 // --- insulated with Other materials

8544.4999 // ---other

8544.5 // - other electric conductors, for a voltage exceeding 80V but not exceeding 1000 V

8544.51 // --Fitted with connectors

8544.519 // ---other

8544.59 // --Other

8544.591 // --- insulated with paper

8544.592 // --- insulated with plastics

8544.593 // --- insulated with rubber

8544.599 // --- insulated with Other materials

8544.60 // --Other electric conductors, for a voltage exceeding 1000 V

8544.602 // --- Other insulated with plastics

8544.603 // --- Other insulated with rubber

8544.604 // --- Other insulated with paper

8544.609 // --- Other insulated with Other materials

85.45 // Carbon electrodes, carbon brushes, lamp carbons, battery carbons and other articles of graphite or other carbon, with or without metal, of a kind used for electrical purposes

8545.20 // -Brushes

85.48 // Waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators; electrical parts of machinery or apparatus, not specified or included elsewhere in this Chapter

8548.10 // Waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators

8548.109 // --- Other

87.01 // Tractors ( other than tractors of heading No. 87.09)

8701.10 // -pedestrial controlled tractors

8701.101 // --- of an engine power not exceeding 10 kW

8701.102 // --- of an engine power exceeding 10 kW

8701.90 // -Other

8701.901 // --- agricultural, of an engine power not exceeding 50 kW

8701.902 // --agricultural, of an engine power exceeding 50kW, but not exceeding 110 kW

8701.9021 // ---- aged more than 5 years

8701.9029 // ---- Other

87.09 // Works trucks, self propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouse, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the foregoing vehicles

8709.1 // - vehicles

8709.11 // --electrical

90.17 // Drawing, marking-out or mathematical calculating instruments ( for example, drafting machines, pantographs; protractors, drawing sets, slide rules, disc calculators) instruments for measuring length, for use in the hand ( for example, measuring rods and tapes, micrometers, calipers ), not specified or included elsewhere in this Chapter

9017.30 // -Micrometers, calipers and gauges

9017.302 // --- calipers

90.28 // Gas, liquid or electricity supply or production meters, including calibrating meters thereof

9028.20 // - liquid meters

9028.201 // --- for fuels

9028.202 // --- for water

9028.209 // --- Other

9028.30 // - electricity meters

9028.309 // --- other

94.01 // Seats (other than those of heading No 94.02) whether or not convertible into beds, and parts thereof.

9401.40 // -Seats other than garden seats or camping equipment, convertible into beds

9401.50 // -Seats of cane, osier, bamboo or similar materials

9401.6 // - other seats, with wooden frames

9401.61 // -- upholstered

9401.611 // --- of bentwood

9401.619 // --- Other

9401.69 // -- other

9401.691 // --- of bentwood

9401.699 // --- Other

9401.7 // - other seats, with metal frames

9401.71 // --Upholstered

9401.79 // --Other

9401.80 // -Other seats

9401.90 // - parts

9401.901 // --- of wood

9401.909 // --- of Other materials

94.03 // Other furniture and parts thereof

9403.10 // -metal furniture of a kind used in offices

9403.20 // -Other metal furniture

9403.209 // --- Other

9403.30 // -wooden furniture of a kind used in offices

9403.40 // -wooden furniture of a kind used in the kitchen

9403.50 // -wooden furniture of a kind used in the bedroom

9403.60 // -Other wooden furniture

9403.70 // -furniture of plastics

9403.709 // --- other

9403.80 // -Furniture of other materials, including cane, osier, bamboo or similar materials

9403.90 // - parts

9403.901 // --- of wood

9403.902 // --- of metals

9403.903 // --- of plastics

9403.909 // --- of Other materials

ANNEX III

Definition of "baby beef" products referred to in Article 27 (2)

Notwithstanding the rules for the interpretation of the Combined Nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together.

&gt;TABLE POSITION&gt;

&gt;TABLE POSITION&gt;

1 Entry under this subheading is subject to conditions laid down in the relevant Community provisions.

&gt;TABLE POSITION&gt;

1 Entry under this subheading is subject to conditions laid down in the relevant Community provisions.

ANNEX IV a)

Croatian Tariff concession for Agricultural products

(Duty-free for unlimited quantities at the date of entering into force of the Agreement)

Croatian Tariff code // Description

01051912 // --- ducklings

01051922 // --- goslings

0105193 // --- guinea Fowls

0106007 // --- bee flocks and bee queens

020500 // Meat of horses, asses, mules or hinnies, fresh, chilled or frozen

040700 // Birds' eggs, in shell, fresh, preserved or cooked:

04070059 // --- duck eggs, other

041000 // Edible products of animal origin not elsewhere specified or included.

050400 // Guts, bladders and stomachs of animals (other than fish), whole and pieces thereof, fresh, chilled, frozen, salted, in brine, dried or smoked.

0604 // Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared.

0801 // Coconuts, Brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled.

080300 // Bananas, including plantains, fresh or dried.

080410 // -Dates

080430 // -Pineapples

080530 // -Lemons (Citrus limon, Citrus limonum) and limes (Citrus aurantifolia)

080540 // -Grapefruit

080590 // -Other

080620 // -Dried

080720 // -Papaws (papayas)

081400 // Peel of citrus fruit or melons (including watermelons), fresh, frozen, dried or provisionally preserved in brine, in sulphur water or in other preservative solutions.

09011 // -Coffee, not roasted

0902 // Tea, whether or not flavoured.

0904 // Pepper of the genus Piper; dried or crushed or ground fruits of the genus Capsicum or of the genus Pimenta.

090500 // Vanilla.

0906 // Cinnamon and cinnamon-tree flowers.

090700 // Cloves (whole fruit, cloves and stems).

0908 // Nutmeg, mace and cardamoms.

0909 // Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper berries.

0910 // Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices.

100110 // -Durum wheat

1002001 // --- Rye for sowing

1003001 // --- Barley for sowing

1004001 // --- Oats for sowing

100510 // - Maize (corn) seed

1006 // Rice.

100700 // Grain sorghum.

1008 // Buckwheat, millet and canary seed; other cereals.

1106 // Flour, meal and powder of the dried leguminous vegetables of heading No. 07.13, of sago or of roots or tubers of heading No. 07.14 or of the products of Chapter 8.

1108 // Starches; inulin.

110900 // Wheat gluten, whether or not dried.

1210 // Hop cones, fresh or dried, whether or not ground, powdered or in the form of pellets; lupulin.

1211 // Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered.

121210 // -Locust beans, including locust bean seeds

121230 // -Apricot, peach or plum stones and kernels

121299 // --Other

121300 // Cereal straw and husks, unprepared, whether or not chopped, ground, pressed or in the form of pellets.

1214 // Swedes, mangolds, fodder roots, hay, lucerne (alfalfa), clover, sainfoin, forage kale, lupines, vetches and similar forage products, whether or not in the form of pellets.

1301 // Lac; natural gums, resins, gum-resins and oleoresins (for example, balsams).

1302 // Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products.

1501001 // --- pig grease for technical purposes (Not suitable for human feeding)

1501003 // --- poultry grease for technical purposes

1501004 // --- edible poultry fat

1501009 // --- Other

150200 // Fats of bovine animals, sheep or goats, other than those of heading No. 15.03.

150300 // Lard stearin, lard oil, oleostearin, oleo-oil and tallow oil, not emulsified or mixed or otherwise prepared.

1504 // Fats and oils and their fractions, of fish or marine mammals, whether or not refined, but not chemically modified.

151610 // -Animal fats and oils and their fractions

17021 // -Lactose and lactose syrup :

170260 // -Other fructose and fructose syrup, containing in the dry state more than 50 % by weight of fructose

170310 // -cane molasses

200320 // -truffles

200911 // --Frozen orange juice

2009191 // --- concentrated orange juice

2009201 // --- concentrated grapefruit juice

2009301 // --- concentrated juice of any other single citrus fruit

2009401 // -- concentrated pineapple juice

2009701 // --- concentrated apple juice

2009801 // --- concentrated carrot juice

2009802 // --- concentrated juice of other fruit and vegetable

2009901 // -- concentrated mixtures of juices

2301 // Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption; greaves.

230210 // -of Maize (corn)

230220 // -of Rice

230240 // -of Other cereals

230310 // -Residues of starch manufacture and similar Residues

230500 // Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of ground-nut oil.

230670 // -of Maize (corn) germ

230700 // Wine lees; argol.

2308 // Vegetable materials and vegetable waste, vegetable residues and by-products, whether or not in the form of pellets, of a kind used in animal feeding, not elsewhere specified or included.

230910 // -Dog or cat food, put up for retail sale

ANNEX IV b)

Croatian Tariff concession for Agricultural products

(Duty-free within quota at the entering into force of the Agreement)

&gt;TABLE POSITION&gt;

ANNEX IV c)

Croatian Tariff concession for Agricultural products

(Duty free for unlimited quantities one year after entering into force of the Agreement)

Croatian Tariff code // Description

//

0206 // Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen.

0208 // Other meat and edible meat offal, fresh, chilled or frozen.

04070069 // --- goose eggs, other

0407009 // --- Other eggs

0714 // Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith.

0802 // Other nuts, fresh or dried, whether or not shelled or peeled.

0811 // Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter.

0812 // Fruit and nuts, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.

0813 // Fruit, dried, other than that of headings Nos. 08.01 to 08.06; mixtures of nuts or dried fruits of this Chapter.

1209 // Seeds, fruit and spores, of a kind used for sowing.

160300 // Extracts and juices of meat, fish or crustaceans, molluscs or other aquatic invertebrates.

200310 // -Mushrooms

200560 // -Asparagus

200791 // --Citrus fruit

200819 // --Other, including mixtures

200820 // -Pineapples

200830 // -citrus fruit

200880 // -Strawberries

2008991 // --- bananas and coconuts

230320 // -Beet-pulp, bagasse and other waste of sugar manufacture

230330 // -brewing or distilling dregs and waste

230400 // Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soyabean oil.

230640 // -of rape or colza Seeds

ANNEX IV d)

Croatian Tariff concession for Agricultural products

(progressive elimination of MFN duties within tariff quotas)

Customs duties for the commodities listed in this annex shall be reduced and eliminated in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be reduced to 80% of the basic duty;

- on 1 January 2003 each duty shall be reduced to 60% of the basic duty;

- on 1 January 2004 each duty shall be reduced to 40% of the basic duty;

- on 1 January 2005 each duty shall be reduced to 20% of the basic duty;

- on 1 January 2006 the remaining duties shall be abolished

&gt;TABLE POSITION&gt;

ANNEX IV e)

Croatian Tariff concession for Agricultural products

(Progressive reduction of MFN duties for unlimited quantities)

Customs duties for the commodities listed in this annex shall be reduced in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be reduced to 90% of the basic duty;

- on 1 January 2003 each duty shall be reduced to 80% of the basic duty;

- on 1 January 2004 each duty shall be reduced to 70% of the basic duty;

- on 1 January 2005 each duty shall be reduced to 60% of the basic duty;

- on 1 January 2006 each duty shall be reduced to 50% of the basic duty.

0104 // Live sheep and goats.

0105 // Live poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls:

010512 // --Turkeys

010592 // -- Fowls of the species Gallus domesticus, weighing not more than 2,000 g

0105922 // --- other

0209 // Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried or smoked.

0404 // Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included.

040700 // Birds' eggs, in shell, fresh, preserved or cooked.

0407004 // --- turkey eggs

0601 // Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, in growth or in flower; chicory plants and roots other than roots of heading No. 12.12.

0602 // Other live plants (including their roots), cuttings and slips; mushroom spawn.

0603 // Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared.

0708 // Leguminous vegetables, shelled or unshelled, fresh or chilled.

0710 // Vegetables (uncooked or cooked by steaming or boiling in water), frozen.

0711 // Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.

0712 // Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared.

0713 // Dried leguminous vegetables, shelled, whether or not skinned or split.

0901 // Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion.

09012 // -Coffee roasted

100300 // Barley.

1003002 // --- brewing

100400 // Oats

1004009 // ---other

1005 // Maize (corn).

100590 // -Other

1104 // Cereal grains otherwise worked (for example, hulled, rolled, flaked, pearled, sliced or kibbled), except rice of heading No. 10.06; germ of cereals, whole, rolled, flaked or ground.

1105 // Flour, meal, powder, flakes, granules and pellets of potatoes.

170230 // -Glucose and glucose syrup, not containing fructose or containing in the dry state less than 20 % by weight of fructose

170240 // -Glucose and glucose syrup, containing in the dry state at least 20 % but less than 50 % by weight of fructose

2005 // Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading No. 20.06.

200540 // -Peas (Pisum sativum)

200551 // --Beans, shelled

2008 // Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included.

200850 // -Apricots

200870 // -Peaches

2009 // Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter.

200940 // -Pineapple juice

2009409 // --- Other

200960 // -Grape juice (including Grape must)

2206 // Other fermented beverages (for example, cider, perry, mead); mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included.

2302 // Bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting, milling or other working of cereals or of leguminous plants.

230230 // -of wheat

2306 // Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of vegetable fats or oils, other than those of heading No. 23.04 or 23.05.

230690 // -Other

2309 // Preparations of a kind used in animal feeding.

230990 // -Other

ANNEX IV f)

Croatian Tariff concession for Agricultural products

(Progressive reduction of MFN duties within quota)

Customs duties for the commodities listed in this annex shall be reduced in accordance with the following timetable:

- on the entry into force of the Agreement each duty shall be reduced to 90% of the basic duty;

- on 1 January 2003 each duty shall be reduced to 80% of the basic duty;

- on 1 January 2004 each duty shall be reduced to 70% of the basic duty;

- on 1 January 2005 each duty shall be reduced to 60% of the basic duty;

- on 1 January 2006 each duty shall be reduced to 50% of the basic duty.

&gt;TABLE POSITION&gt;

&gt;TABLE POSITION&gt;

ANNEX V a)

Products referred to in Article 28.1

Imports into the European Community of the following products originating in Croatia shall be subject to the concessions set out below:

&gt;TABLE POSITION&gt;

Over the quota volume, the full MFN rate of duty is applicable.

Duties of all products of HS position 1604 except prepared or preserved sardines and anchovies will be reduced, according to the following timetable, to the following levels:

&gt;TABLE POSITION&gt;

ANNEX V b)

Products referred to in Article 28.2

Imports into Croatia of the following products originating in the European Community shall be subject to the concessions set out below:

&gt;TABLE POSITION&gt;

&gt;TABLE POSITION&gt;

&gt;TABLE POSITION&gt;

&gt;TABLE POSITION&gt;

Over the quota volume, the full MFN rate of duty is applicable.

Duties of all products of HS position 1604 except prepared or preserved sardines and anchovies will be reduced, according to the following timetable, to the following levels:

&gt;TABLE POSITION&gt;

ANNEX VI

ESTABLISHMENT: FINANCIAL SERVICES

Referred to in Title V, Chapter II

1. Financial Services: Definitions

A financial service is any service of a financial nature offered by a financial service provider of a Party.

Financial services include the following activities:

A. All Insurance and insurance-related services:

1. direct insurance (including co-insurance):

(i) life;

(ii) non-life;

2. reinsurance and retrocession;

3. insurance inter mediation, such as brokerage and agency;

4. services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services;

B. Banking and other financial services (excluding insurance):

1. acceptance of deposits and other repayable funds from the public;

2. lending of all types, including, inter alia, consumer-credit, mortgage credit, factoring and financing of commercial transaction;

3. financial leasing;

4. all payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers draft;

5. guarantees and commitments;

6. trading for own account or for account of customers, whether on an exchange, in an over the counter market or otherwise, the following:

(a) money market instruments (cheques, bills, certificates of deposits, etc.),

(b) foreign exchange,

(c) derivative products including, but not limited to, futures and options,

(d) exchange rates and interest rate instruments, including products such as swaps, forward rate agreements, etc.,

(e) transferable securities,

(f) other negotiable instruments and financial assets, including bullion;

7. participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;

8. money broking;

9. asset management, such as cash or portfolio management, all forms of collective investment management, pension-fund management, custodial, depository and trust services;

10. settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;

11. provision and transfer of financial information, and financial data processing and related software by providers of other financial services.

12. advisory, intermediation and other auxiliary financial services on all the activities listed in points 1 to 11 above, including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy;

The following activities are excluded from the definition of financial services:

(a) activities carried out by central banks or by any other public institution in pursuit of monetary and exchange rate policies;

(b) activities conducted by central banks, government agencies or departments, or public institutions, for the account or with the guarantee of the government, except when those activities may be carried out by financial service providers in competition with such public entities;

(c) activities forming part of a statutory system of social security or public retirement plans, except when those activities may be carried by financial service providers in competition with public entities or private institutions.

ANNEX VII

Acquisition of real properties by EU Nationals

List of exceptions referred to in article 60.2

Excluded sector

- Agricultural land as defined by the Agricultural Land Act (Narodne novine no.54/94, consolidated text, 48/95, 19/98 and 105/99)

- Areas protected under the Environmental Protection Act (Narodne novine no. 30/94)

ANNEX VIII

Intellectual, industrial and commercial property rights

Referred to in article 71

1. The parties confirm the importance they attach to the obligations arising from the following multilateral conventions:

- International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations (Rome, 1961);

- Paris Convention for the Protection of Industrial Property (Stockholm Act, 1967 and amended in 1979);

- Madrid Agreement concerning the International Registration of Marks (Stockholm Act, 1967 and amended in 1979);

- Patent Cooperation Treaty (Washington, 1970, amended in 1979 and modified in 1984);

- Convention for the Protection of Producers of Phonograms against Unauthorised Duplications of their Phonograms (Geneva 1971);

- Berne Convention for the Protection of Literary and Artistic Works (Paris Act, 1971);

- Nice Agreement concerning the International Classification of Goods and Services for the purposes of the Registration of Marks (Geneva, 1977 and amended in 1979);

- WIPO Copyright Treaty (Geneva, 1996);

- WIPO Performances and Phonograms Treaty (Geneva, 1996).

2. From entry into force of this Agreement, the Parties shall grant, in accordance with the TRIPS agreement, to each others companies and nationals, in respect of the recognition and protection of intellectual, industrial and commercial property, treatment no less favourable than that granted by them to any third country under bilateral agreements

List of Protocols

Protocol 1

- On Textile and clothing products

Protocol 2

- On Steel Products

Protocol 3

- On trade between Croatia and the Community in Processed agricultural products

Protocol 4

- Concerning the definition of the concept of "originating products"

- and methods of administrative co-operation

Protocol 5

- On mutual administrative assistance in customs matters

Protocol 6

- On Land Transport

PROTOCOL 1

Related to Article 22

on textile and clothing products

Article 1

This Protocol applies to the textile and clothing products (hereinafter "textile products") listed in Section XI (Chapter 50 to 63) of the Combined nomenclature of the Community.

Article 2

1. Textile products falling within Section XI (Chapter 50 to 63) of the Combined nomenclature and originating in Croatia as defined in Protocol 4 of this Agreement will enter into the Community free of Customs duties on the date of entry into force of this Agreement.

2. The duties applied to direct imports into Croatia of textile products falling within Section XI (Chapter 50 to 63) of the Combined nomenclature and originating in the Community as defined in Protocol 4 of the Agreement, shall be abolished on the date of entry into force of Agreement except for products listed in Annex I and II to this Protocol for which the rates of duties shall be progressively reduced as provided therein.

3. Subject to this Protocol, the provisions of the Agreement and in particular Articles 19 and 20 of the Agreement shall apply to trade in textile products between the parties.

Article 3

The double-checking arrangements and other related issues regarding exports of textile products originating in Croatia to the Community and originating in the Community to Croatia are stipulated in the Agreement between the European Community and the Republic of Croatia on trade in textile products initialled on 8 November 2000 and applied since 1 January 2001.

Article 4

From the entry into force of this Agreement, no new quantitative restrictions or measures of equivalent effect shall be imposed except as provided for under the above Agreement and its Protocols.

Annex I

Duty rates will be reduced as follows:

- On the entry into force of the Agreement, duty shall be reduced to 60% of the basic duty

- On 1 January 2003, duty shall be reduced to 30% of the basic duty

- On 1 January 2004 the remaining duties shall be abolished

HS 6+ // Description

51.11 // Woven fabrics of carded wool or of carded fine animal hair.

5111.20 // -Other, mixed mainly or solely with man-made filaments

52.07 // Cotton yarn (other than sewing thread) put up for retail sale.

5207.10 // -Containing 85 % or more by weight of cotton

5207.101 // --- non-mercerized

5207.109 // --- mercerized

52.08 // Woven fabrics of cotton, containing 85 % or more by weightof cotton, weighing not more than 200 g/m2.

5208.3 // -Dyed :

5208.31 // --Plain weave, weighing not more than 100 g/ m2

5208.32 // --Plain weave, weighing more than 100 g/ m2

5208.39 // --Other Fabrics

5208.5 // -Printed :

5208.51 // --Plain weave, weighing not more than 100 g/ m2

5208.52 // --Plain weave, weighing more than 100 g/ m2

5208.53 // --3-thread or 4-thread twill, including cross twill

52.09 // Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing more than 200 g/ m2.

5209.2 // -Bleached :

5209.22 // --3-thread or 4-thread twill, including cross twill

5209.29 // --Other Fabrics

5209.3 // -Dyed :

5209.39 // --Other Fabrics

5209.4 // -Of yarns of different colours :

5209.49 // --Other Fabrics

5209.5 // -Printed :

5209.59 // --Other Fabrics

52.10 // Woven fabrics of cotton, containing less than 85 % by weight of cotton, mixed mainly or solely with man-made fibres, weighing not more than 200 g/ m2.

5210.2 // -Bleached :

5210.29 // --Other Fabrics

5210.3 // -Dyed :

5210.39 // --Other Fabrics

5210.5 // -Printed :

5210.59 // --Other Fabrics

54.02 // Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex.

5402.3 // - textured yarn

5402.33 // --of polyesters

5402.339 // --- measuring per single yarn more than 50 tex

55.14 // Woven fabrics of synthetic staple fibres, containing less than 85 % by weight of such fibres, mixed mainly or solely with cotton, of a weight exceeding 170 g/ m2.

5514.1 // -Unbleached or bleached :

5514.12 // --3-thread or 4-thread twill, including cross twill, of polyester staple fibres

5514.2 // -Dyed :

5514.21 // --Of polyester staple fibres, plain weave

5514.22 // --3-thread or 4-thread twill, including cross twill, of polyester staple fibres

5514.29 // --Other woven Fabrics

55.15 // Other woven fabrics of synthetic staple fibres.

5515.1 // -Of polyester staple fibres :

5515.11 // --Mixed mainly or solely with viscose rayon staple fibres

5515.12 // --Mixed mainly or solely with man-made filaments

5515.13 // --Mixed mainly or solely with wool or Fine Animal Hair

5515.19 // --Other

55.16 // Woven fabrics of artificial staple fibres.

5516.1 // -Containing 85 % or more by weight of artificial staple fibres :

5516.11 // --Unbleached or bleached

5516.12 // --Dyed

5516.13 // --of yarns of different colors

5516.2 // -Containing less than 85 % by weight of artificial staple fibres, mixed mainly or solely with man-made filaments :

5516.21 // --Unbleached or bleached

5516.22 // --Dyed

5516.23 // --of yarns of different colors

5516.24 // --printed

5516.3 // -Containing less than 85 % by weight of artificial staple fibres, mixed mainly or solely with wool or fine animal hair :

5516.31 // --Unbleached or bleached

5516.32 // --Dyed

5516.33 // --of yarns of different colours

5516.34 // --printed

56.01 // Wadding of textile materials and articles thereof; textile fibres, not exceeding 5 mm in length (flock), textile dust and mill neps.

5601.2 // -Wadding; other articles of wadding :

5601.21 // --of Cotton

5601.211 // --- Wadding

5601.219 // --- articles of Wadding

56.03 // Non-wovens, whether or not impregnated, coated, covered or laminated.

5603.1 // -Of man-made filaments :

5603.13 // --Weighing more than 70 g/ m2 but not more than 150 g/ m2

5603.14 // --Weighing more than 150 g/m2

5603.9 // -Other :

5603.93 // --Weighing more than 70 g/ m2 but not more than 150 g/ m2

5603.94 // --Weighing more than 150 g/ m2

57.01 // Carpets and other textile floor coverings, knotted, whether or not made up.

5701.90 // -of Other textile materials

57.03 // Carpets and other textile floor coverings, tufted, whether or not made up.

5703.20 // -of nylon or Other polyamides

5703.30 // -of Other man-made textile materials

5703.90 // -of Other textile materials

5705.00 // Other carpets and other textile floor coverings, whether or not made up.

58.03 // Gauze, other than narrow fabrics of heading No. 58.06.

5803.10 // -of Cotton

58.07 // Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered.

5807.90 // -Other

59.03 // Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading No. 59.02.

5903.10 // -with Polyvinyl chloride

5903.20 // -with polyurethane

5903.90 // -Other

59.06 // Rubberised textile fabrics, other than those of heading No. 59.02.

5906.10 // -Adhesive tape of a width not exceeding 20 cm

5906.9 // -Other :

5906.91 // --Knitted or crocheted

5906.99 // --Other

5909.00 // Textile hosepiping and similar textile tubing, with or without lining, armour or accessories of other materials

5909.001 // ---Fire hosepiping and tubing

5909.009 // --- other

61.03 // Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted.

6103.1 // -Suits :

6103.11 // --of wool or Fine Animal Hair

6103.12 // --of synthetic fibres

6103.19 // --of Other textile materials

6103.2 // -Ensembles :

6103.21 // --of wool or Fine Animal Hair

6103.22 // --of Cotton

6103.23 // --of synthetic fibres

6103.29 // --of Other textile materials

6103.3 // -Jackets and blazers :

6103.31 // --of wool or Fine Animal Hair

6103.32 // --of Cotton

6103.33 // --of synthetic fibres

6103.39 // --of Other textile materials

6103.4 // -Trousers, bib and brace overalls, breeches and shorts :

6103.41 // --of wool or Fine Animal Hair

6103.42 // --of Cotton

6103.43 // --of synthetic fibres

6103.49 // --of Other textile materials

63.01 // Blankets and travelling rugs

6301.20 // -Blankets (other than electric blankets) and travellingrugs, of wool or of fine animal hair

6301.30 // -Blankets (other than electric blankets) and travelling rugs, of cotton

6301.40 // -Blankets (other than electric blankets) and travelling rugs, of synthetic fibres

6301.90 // -Other blankets and travelling rugs

63.02 // Bed linen, table linen, toilet linen and kitchen linen.

6302.10 // -Bed linen, knitted or crocheted

6302.2 // -Other bed linen, printed :

6302.21 // --of Cotton

6302.22 // --of man-made fibres

6302.29 // --of Other textile materials

6302.3 // -Other bed linen :

6302.31 // --of Cotton

6302.319 // --- Other

6302.39 // --of Other textile materials

6302.40 // -Table linen, knitted or crocheted

6302.5 // -Other table linen :

6302.51 // --of Cotton

6302.59 // --of Other textile materials

Annex II

Duty rates will be reduced ass follows :

- on the date of entry into force of the Agreement, duty shall be reduced to 65% of the basic duty

- on 1 January 2003, duty shall be reduced to 50% of the basic duty

- on 1 January 2004, duty shall be reduced to 35% of the basic duty

- on 1 January 2005, duty shall be reduced to 20% of the basic duty

- on 1 January 2006, the remaining duties shall be abolished

HS 6+ // Description

51.09 // Yarn of wool or of fine animal hair, put up for retail sale.

5109.10 // -Containing 85 % or more by weight of wool or of fine animal hair

5109.90 // -Other

61.04 // Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted.

6104.3 // -Jackets and blazers :

6104.32 // --of Cotton

6104.33 // --of synthetic fibres

6104.39 // --of Other textile materials

6104.4 // -Dresses :

6104.41 // --of wool or Fine Animal Hair

6104.42 // --of Cotton

6104.43 // --of synthetic fibres

6104.44 // --of Artificial fibres

6104.49 // --of Other textile materials

6104.5 // -Skirts and divided skirts :

6104.51 // --of wool or Fine Animal Hair

6104.52 // --of Cotton

6104.53 // --of synthetic fibres

6104.59 // --of Other textile materials

6104.6 // -Trousers, bib and brace overalls, breeches and shorts :

6104.62 // --of Cotton

6104.63 // --of synthetic fibres

6104.69 // --of Other textile materials

61.05 // Men's or boys' shirts, knitted or crocheted.

6105.10 // -of Cotton

6105.20 // -of man-made fibres

6105.90 // -of Other textile materials

61.06 // Women's or girls' blouses, shirts and shirt-blouses, knitted or crocheted.

6106.10 // -of Cotton

6106.20 // -of man-made fibres

6106.90 // -of Other textile materials

61.07 // Men's or boys' underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and similar articles, knitted or crocheted.

6107.1 // -Underpants and briefs :

6107.11 // --of Cotton

6107.12 // --of man-made fibres

6107.19 // --of Other textile materials

6107.2 // -Nightshirts and pyjamas :

6107.21 // --of Cotton

6107.22 // --of man-made fibres

6107.29 // --of Other textile materials

6107.9 // -Other :

6107.91 // --of Cotton

6107.92 // --of man-made fibres

6107.99 // --of Other textile materials

61.08 // Women's or girls' slips, petticoats, briefs, panties, nightdresses, pyjamas, négligés, bathrobes, dressing gowns and similar articles, knitted or crocheted.

6108.2 // -Briefs and panties :

6108.21 // --of Cotton

6108.22 // --of man-made fibres

6108.29 // --of Other textile materials

6108.3 // -Nightdresses and pyjamas :

6108.31 // --of Cotton

6108.32 // --of man-made fibres

6108.39 // --of Other textile materials

6108.9 // -Other :

6108.91 // --of Cotton

6108.92 // --of man-made fibres

6108.99 // --of Other textile materials

61.09 // T-shirts, singlets and other vests, knitted or crocheted.

6109.10 // -of Cotton

6109.90 // -of Other textile materials

61.10 // Jerseys, pullovers, cardigans, waist-coats and similar articles, knitted or crocheted.

6110.10 // -of wool or fine animal hair

6110.20 // -of Cotton

6110.30 // -of man-made fibres

6110.90 // -of Other textile materials

62.03 // Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear).

6203.1 // -Suits :

6203.11 // --of wool or Fine Animal Hair

6203.12 // --of synthetic fibres

6203.129 // --- Other

6203.19 // --of Other textile materials

6203.192 // --- other, of cotton

6203.199 // --- Other

6203.2 // -Ensembles :

6203.21 // --of wool or Fine Animal Hair

6203.22 // --of Cotton

6203.229 // --- Other

6203.23 // --of synthetic fibres

6203.239 // --- Other

6203.29 // --of Other textile materials

6203.299 // --- Other

6203.3 // -Jackets and blazers :

6203.32 // --of Cotton

6203.329 // --- Other

6203.33 // --of synthetic fibres

6203.339 // --- Other

6203.39 // --of Other textile materials

6203.399 // --- Other

6203.4 // -Trousers, bib and brace overalls, breeches and shorts :

6203.42 // --of Cotton

6203.429 // --- Other

6203.43 // --of synthetic fibres

6203.439 // --- Other

6203.49 // --of Other textile materials

6203.499 // --- Other

62.04 // Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear).

6204.1 // -Suits :

6204.12 // --of Cotton

6204.13 // --of synthetic fibres

6204.19 // --of Other textile materials

6204.2 // -Ensembles :

6204.22 // --of Cotton

6204.229 // --- Other

6204.23 // --of synthetic fibres

6204.239 // --- Other

6204.29 // --of Other textile materials

6204.299 // --- Other

6204.3 // -Jackets and blazers :

6204.32 // --of Cotton

6204.329 // --- Other

6204.33 // --of synthetic fibres

6204.339 // --- Other

6204.39 // --of Other textile materials

6204.399 // --- Other

6204.4 // -Dresses :

6204.42 // --of Cotton

6204.43 // --of synthetic fibres

6204.44 // --of Artificial fibres

6204.49 // --of Other textile materials

6204.5 // -Skirts and divided skirts :

6204.52 // --of Cotton

6204.53 // --of synthetic fibres

6204.59 // --of Other textile materials

6204.6 // -Trousers, bib and brace overalls, breeches and shorts :

6204.61 // --of wool or Fine Animal Hair

6204.62 // --of Cotton

6204.629 // --- Other

6204.63 // --of synthetic fibres

6204.639 // --- Other

6204.69 // --of Other textile materials

6204.699 // --- Other

62.05 // Men's or boys' shirts.

6205.10 // -of wool or Fine Animal Hair

6205.20 // -of Cotton

6205.30 // -of man-made fibres

6205.90 // -of Other textile materials

62.06 // Women's or girls' blouses, shirts and shirt-blouses.

6206.30 // -of Cotton

6206.40 // -of man-made fibres

6206.90 // -of Other textile materials

6309.00 // Worn clothing and other worn articles.

PROTOCOL 2

on steel products

Article 1

This Protocol shall apply to the products listed in Chapters 72 of the Common Customs Tariff. It shall also apply to other finished steel products that may originate in future in Croatia under the above chapter.

Article 2

Customs duties on imports applicable in the Community on steel products originating in Croatia shall be abolished on the date of entry into force of the Agreement.

Article 3

1. Customs duties applicable in Croatia on imports of steel products originating in the Community other than those listed in Annex I shall be abolished at the entry into force of the Agreement.

2. Customs duties applicable in Croatia on imports of steel products listed in Annex I, shall be progressively abolished in accordance with the following timetable:

- on the date of entry into force of the Agreement, duty shall be reduced to 65% of the basic duty

- on 1 January 2003, duty shall be reduced to 50% of the basic duty

- on 1 January 2004, duty shall be reduced to 35% of the basic duty

- on 1 January 2005, duty shall be reduced to 20% of the basic duty

- on 1 January 2006, the remaining duties shall be abolished

Article 4

1. Quantitative restrictions on imports into the Community of steel products originating in Croatia as well as measures having equivalent effect shall be abolished on the date of entry into force of the Agreement.

2. Quantitative restrictions on imports into Croatia of steel products originating in the Community, as well as measures having equivalent effect, shall be abolished on the date of entry into force of the Agreement.

Article 5

1. In view of the disciplines stipulated by article 70 of the Agreement, the Parties recognise the need and urgency that each Party addresses promptly any structural weaknesses of its steel sector to ensure the global competitiveness of its industry. Croatia shall therefore establish within two years the necessary restructuring and conversion programme for its steel industry to achieve viability of this sector under normal market conditions. Upon request, the Community shall provide Croatia with the appropriate technical advice to achieve this objective.

2. Further to the disciplines stipulated by article 70 of the Agreement, any practices contrary to this Article shall be assessed on the basis of specific criteria arising from the application of the State aid disciplines of the Community, including secondary legislation, and including any specific rules on State aid control applicable to the steel sector after the expiry of the ECSC Treaty.

3. For the purposes of applying the provisions of paragraph 1(iii) of article 70 of the Agreement with regard to steel products, the Community recognises that during five years after the entry into force of the Agreement Croatia may exceptionally grant State aid for restructuring purposes provided that:

- it leads to the viability of the benefiting firms under normal market conditions at the end of the restructuring period, and

- the amount and intensity of such aid are strictly limited to what is absolutely necessary in order to restore such viability and are progressively reduced, and

- the restructuring programme is linked to a global rationalisation and reduction of capacity in Croatia.

4. Each Party shall ensure full transparency with respect to the implementation of the necessary restructuring and conversion programme by a full and continuous exchange of information to the other Party, including details on the restructuring plan as well as amount, intensity and purpose for any State aid granted on the basis of paragraphs 2 and 3 of this article.

5. The Stabilisation and Association Council shall monitor the implementation of the requirements set out in paragraphs 1 to 4 above.

6. If one of the Parties considers that a particular practice of the other Party is incompatible with the terms of this article, and if that practice causes or threatens to cause prejudice to the interests of the first Party or material injury to its domestic industry, this Party may take appropriate measures after consultation within the contact group referred to in Article 7 or after thirty working days following referral for such consultation.

Article 6

The provisions of Articles 19, 20 and 21 of the Agreement shall apply to trade between the Parties in steel products.

Article 7

The Parties agree that for the purpose of following and reviewing the proper implementation of this Protocol, a Contact Group shall be created in accordance with article 115 of the Agreement.

ANNEX I

72.13 // Bars and rods, hot-rolled, in irregulary would cils, of iron or non-alloy steel

7213.10 // -Containing indentations, ribs, grooves or other deformations produced during the rolling process

7213.101 // --- of a diameter measuring 8 mm and more, but not exceeding 14 mm

7213.109 // --- Other

7213.9 // -Other:

7313.91 // --Of circular cross-section measuring less than 14 mm in diameter

7213.912 // --- other, of a diameter measuring 8 mm and more

72.14 // Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling

7214.20 // -Containing indentations, ribs, grooves or other deformations produced during the rolling process or twisted after rolling

7214.201 // --- of a diameter measuring 8 mm and more, but not exceeding 25 mm

7214.9 // -Other

7214.99 // --Other

7214.991 // --- of circular cross-section with a diameter measuring 8 mm and more, but not exceeding 25 mm

72.17 // Wire of iron or non-alloy steel

7217.10 // -Not plated or coated, whether or not polished

7217.109 // --- Other

PROTOCOL 3

on trade between Croatia and the Community in processed agricultural products

Article 1

1. The Community and Croatia apply to processed agricultural products the duties, listed in Annex I and Annex II respectively in accordance with the conditions mentioned therein, whether limited by quota or not.

2. The Stabilisation and Association Council shall decide on:

- extensions of the list of processed agricultural products under this Protocol,

- amendments to the duties referred to in Annexes I and II,

- increases in or the abolition of tariff quotas.

3. The Stabilisation and Association Council may replace the duties established by this Protocol by a regime established on the basis of the respective market prices of the Community and Croatia of agricultural products actually used in the manufacture of processed agricultural products subject to this Protocol.

Article 2

The duties applied pursuant to Article 1 may be reduced by decision of the Stabilisation and Association Council:

- when in trade between the Community and Croatia the duties applied to the basic products are reduced, or

- in response to reductions resulting from mutual concessions relating to processed agricultural products.

Article 3

The Community and Croatia shall inform each other of the administrative arrangements adopted for the products covered by this Protocol. These arrangements should ensure equal treatment for all interested parties and should be as simple and flexible as possible.

ANNEX I

Duties applicable upon imports into the Community of goods originating in Croatia

Duties are set to zero for imports into the Community of processed agricultural products originating in Croatia as listed hereafter.

CN Code // Description

(1) // (2)

0403 // Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa:

0403 10 // -Yoghurt:

0403 10 51 to

0403 10 99 // --Flavoured or containing added fruit, nuts or cocoa:

0403 90 // -Other:

0403 90 71 to

0403 90 99 // --Flavoured or containing added fruit, nuts or cocoa

0405 // Butter and other fats and oils derived from milk; dairy spreads:

0405 20 // -Dairy spreads:

0405 20 10 // --Of a fat content, by weight, of 39% or more but less than 60%

0405 20 30 // --Of a fat content, by weight, of 60% or more but not exceeding 75%

0509 00 // Natural sponges of animal origin:

0509 00 90 // -Other

0710 // Vegetables (uncooked or cooked by steaming or boiling in water), frozen:

0710 40 00 // -Sweet corn

0711 // Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption:

0711 90 // -Other vegetables; mixtures of vegetables:

// --Vegetables

0711 90 30 // ---Sweet corn

1302 // Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products:

// -Vegetable saps and extracts:

1302 12 00 // --Of liquorice

1302 13 00 // --Of hops

1302 20 // -Pectic substances, pectinates and pectates:

1302 20 10 // --Dry

1302 20 90 // --Other

1505 // Wool grease and fatty substances derived therefrom (including lanolin):

1505 10 00 // -Wool grease, crude

1516 // Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinized, whether or not refined, but not further prepared:

1516 20 // -Vegetable fats and oils and their fractions:

1516 20 10 // --Hydrogenated castor oil, so called "opal-wax"

1517 // Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, other than edible fats or oils or their fractions of heading No 1516:

1517 10 // -Margarine, excluding liquid margarine:

1517 10 10 // --Containing more than 10% but not more than 15% by weight of milk fats

1517 90 // -Other:

1517 90 10 // --Containing more than 10% but not more than 15% by weight of milk fats

// --Other:

1517 90 93 // ---Edible mixtures or preparations of a kind used as mould release preparations

1518 00 // Animal or vegetable fats and oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading No 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, not elsewhere specified or included:

1518 00 10 // -Linoxyn

// -Other:

1518 00 91 // --Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurized, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading No1516

// --Other:

1518 00 95 // ---Inedible mixtures or preparations of animal or of animal and vegetable fats and oils and their fractions

1518 00 99 // ---Other

1521 // Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermaceti, whether or not refined or coloured:

1521 90 // -Other:

// --Beeswax and other insect waxes, whether or not refined or coloured

1521 90 99 // ---Other

1522 00 // Degras; residues resulting from the treatment of fatty substances or animal or vegetable waxes:

1522 00 10 // -Degras

1702 // Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel:

1702 50 00 // -Chemically pure fructose

1702 90 // -Other, including invert sugar:

1702 90 10 // --Chemically pure maltose

1704 // Sugar confectionery (including white chocolate), not containing cocoa

1803 // Cocoa paste, whether or not defatted

1804 00 00 // Cocoa butter, fat and oil

1805 00 00 // Cocoa powder, not containing added sugar or other sweetening matter

1806 // Chocolate and other food preparations containing cocoa

1901 // Malt extract; food preparations of flour, meal, starch or malt extract, not containing cocoa or containing less than 40% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods of heading Nos 0401 to 0404, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included

1902 // Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared:

// -Uncooked pasta, not stuffed or otherwise prepared:

1902 11 00 // --Containing eggs

1902 19 // --Other

1902 20 // -Stuffed pasta whether or not cooked or otherwise prepared:

// --Other:

1902 20 91 // ---Cooked

1902 20 99 // ---Other

1902 30 // -Other pasta

1902 40 // -Couscous

1903 00 00 // Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or similar forms

1904 // Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, cornflakes); cereals (other than maize (corn)), in grain form, or in the form of flakes or other worked grains (except flour and meal), pre-cooked, or otherwise prepared, not elsewhere specified or included

1905 // Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products

2001 // Vegetables, fruits, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid:

2001 90 // -Other:

2001 90 30 // --Sweet corn (Zea mays var. saccharata)

2001 90 40 // --Yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch

2001 90 60 // --Palm hearts

2004 // Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading No 2006:

2004 10 // -Potatoes:

// --Other:

2004 10 91 // ---In the form of flour, meal or flakes

2004 90 // -Other vegetables and mixtures of vegetables:

2004 90 10 // --Sweet corn(Zea mays var. saccharata)

2005 // Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading No 2006:

2005 20 // -Potatoes:

2005 20 10 // --In the form of flour, meal or flakes

2005 80 00 // -Sweet corn(Zea mays var. saccharata)

2008 // Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included:

// -Nuts, ground-nuts and other seeds, whether or not mixed together:

2008 11 // --Ground-nuts:

2008 11 10 // ---Peanut butter

// -Other, including mixtures other than those of subheading 2008 19:

2008 91 00 // --Palm hearts

2008 99 // --Other:

// ---Not containing added spirit:

// ----Not containing added sugar:

2008 99 85 // -----Maize (corn), other than sweet corn (Zea mays var. saccharata)

2008 99 91 // -----Yams, sweet potatoes and similar edible parts of plants, containing 5% or more by weight of starch

2101 // Extracts, essences and concentrates, of coffee, tea or maté, and preparations with a basis of these products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof

2102 // Yeasts (active or inactive); other single-cell micro-organisms, dead (but not including vaccines of heading No 3002); prepared baking powders:

2102 10 // -Active yeasts

2102 20 // -Inactive yeasts; other single-cell micro-organisms, dead:

// --Inactive yeasts:

2102 20 11 // ---In tablet, cube or similar form, or in immediate packings of a net content not exceeding 1 kg.

2102 20 19 // ---Other

2102 30 00 // -Prepared baking powders

2103 // Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard:

2103 10 00 // -Soya sauce

2103 20 00 // -Tomato ketchup and other tomato sauces

2103 30 // -Mustard flour and meal and prepared mustard:

2103 30 90 // --Prepared mustard

2103 90 // --Other:

2103 90 90 // --Other

2104 // Soups and broths and preparations therefor; homogenised composite food preparations

2105 00 // Ice cream and other edible ice, whether or not containing cocoa

2106 // Food preparations not elsewhere specified or included:

2106 10 // -Protein concentrates and textured protein substances

2106 90 // -Other:

2106 90 10 // --Cheese fondues

2106 90 20 // --Compound alcoholic preparations, other than those based on odoriferous substances, of a kind used for the manufacture of beverages

// --Other:

2106 90 92 // ---Containing no milk fats, sucrose, isoglucose, glucose or starch or containing, by weight, less than 1.5% milk fat, 5% sucrose or isoglucose, 5% glucose or starch

2106 90 98 // ---Other

2202 // Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading No 2009

2203 00 // Beer made from malt

2205 // Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances

2207 // Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength

2208 // Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; spirits, liqueurs and other spirituous beverages:

2208 40 // -Rum and taffia

2208 90 // -Other:

2208 90 91 to

2208 90 99 // --Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% volume

2402 // Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes

2403 // Other manufactured tobacco and manufactured tobacco substitues; "homogenized" or "reconstituted" tobacco; tobacco extracts and essences

2905 // Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives:

// -Other polyhydric alcohols:

2905 43 00 // --Mannitol

2905 44 // --D-glucitol (sorbitol)

2905 45 00 // --Glycerol

3301 // Essential oils (terpeneless or not), including concretes and absolutes; resinoids; extracted oleoresins; concentrates of essential oils in fats, in fixed oils, in waxes or the like, obtained by enfleurage or maceration; terpenic by products of the deterpenation of essential oils; aqueous distillates and aqueous solutions of essential oils:

3301 90 // -Other:

3301 90 21 // ---Of liquorice and hops

3302 // Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as a raw materials in industry; other preparations based on odoriferous substances, of a kind used for the manufacture of beverages:

3302 10 // -Of a kind used in the food or drink industries

// --Of the type used in the drink industries:

// ---Preparations containing all flavouring agents characterising a beverage:

3302 10 10 // ----Of an actual alcoholic strength by volume exceeding 0.5%

// ----Other:

3302 10 21 // -----Containing no milkfats, sucrose, isoglucose, glucose, or starch or containing, by weight, less than 1.5% milkfat, 5%sucrose or isoglucose, 5% glucose or starch

3302 10 29 // -----Other

3501 // Casein, caseinates and other casein derivates; casein glues:

3501 10 // -Casein:

3501 10 50 // --For industrial uses other than the manufacture of foodstuffs or fodder

3501 10 90 // --Other

3501 90 // -Other:

3501 90 90 // --Other

3505 // Dextrins and other modified starches (for example, pregelatinized or esterified starches); glues based on starches, or on dextrins or other modified starches:

3505 10 // -Dextrins and other modified starches:

3505 10 10 // --Dextrins

// --Other modified starches:

3505 10 90 // ---Other

3505 20 // -Glues

3809 // Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included:

3809 10 // -With a basis of amylaceouos substances

3823 // Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols:

// -Industrial monocarboxylic fatty acids, acid oils from refining

3823 11 00 // --Stearic acid

3823 12 00 // --Oleic acid

3823 13 00 // --Tall oil fatty acids

3823 19 // --Other

3823 70 00 // -Industrial fatty alcohols

3824 // Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included; residual products of the chemical or allied industries, not elsewhere specified or included:

3824 60 // -Sorbitol other than that of subheading 2905 44

ANNEX II

List 1 : Goods originating in the Community for which Croatia will eliminate duties (immediately or gradually)

&gt;TABLE POSITION&gt;

List 2 : Quotas and duties applicable upon import into Croatia of goods originating in the Community

Note :The products listed in this Table shall benefit from a zero-duty tariff within the tariff quotas set out below. The volume of these quotas will be increased annually in the years 2003, 2004, 2005 and 2006 by 10% of the volume for 2002. The applicable duty for quantities exceeding these volumes will be reduced in the years 2002, 2003, 2004, 2005 and 2006 to 90%, 80%, 70%, 60% and 50% of the MFN duty rate.

&gt;TABLE POSITION&gt;

List 3 : Quotas and duties applicable upon import into Croatia of goods originating in the Community

Note :The products listed in this Table shall be subject to concessions set out below. The volume of the tariff quotas will be increased annually in the years 2003, 2004, 2005 and 2006 by 10% of the volume for 2002. The applicable duty for quantities exceeding these volumes will be reduced in the years 2002, 2003, 2004, 2005 and 2006 to 90%, 80%, 65%, 55% and 40% of the MFN duty rate.

&gt;TABLE POSITION&gt;

PROTOCOL 4

DEFINITION OF THE CONCEPT OF ORIGINATING PRODUCTS

AND

METHODS OF ADMINISTRATIVE CO-OPERATION

(REFERRED TO IN ARTICLE 41)

TABLE OF CONTENTS

TITLE I GENERAL PROVISIONS

- Article 1 Definitions

TITLE II DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

- Article 2 General requirements

- Article 3 Bilateral cumulation in the Community

- Article 4 Bilateral cumulation in Croatia

- Article 5 Wholly obtained products

- Article 6 Sufficiently worked or processed products

- Article 7 Insufficient working or processing operations

- Article 8 Unit of qualification

- Article 9 Accessories, spare parts and tools

- Article 10 Sets

- Article 11 Neutral elements

TITLE III TERRITORIAL REQUIREMENTS

- Article 12 Principle of territoriality

- Article 13 Direct transport

- Article 14 Exhibitions

TITLE IV DRAWBACK OR EXEMPTION

- Article 15 Prohibition of drawback of, or exemption from, customs duties

TITLE V PROOF OF ORIGIN

- Article 16 General requirements

- Article 17 Procedure for the issue of a movement certificate EUR.1

- Article 18 Movement certificates EUR.1 issued retrospectively

- Article 19 Issue of a duplicate movement certificate EUR.1

- Article 20 Issue of movement certificates EUR.1 on the basis of a proof of origin issued or made out previously

- Article 21 Conditions for making out an invoice declaration

- Article 22 Approved exporter

- Article 23 Validity of proof of origin

- Article 24 Submission of proof of origin

- Article 25 Importation by instalments

- Article 26 Exemptions from proof of origin

- Article 27 Supporting documents

- Article 28 Preservation of proof of origin and supporting documents

- Article 29 Discrepancies and formal errors

- Article 30 Amounts expressed in euro

TITLE VI ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

- Article 31 Mutual assistance

- Article 32 Verification of proofs of origin

- Article 33 Dispute settlement

- Article 34 Penalties

- Article 35 Free zones

TITLE VII CEUTA AND MELILLA

- Article 36 Application of the Protocol

- Article 37 Special conditions

TITLE VIII FINAL PROVISIONS

- Article 38 Amendments to the Protocol

TITLE I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Protocol:

(a) "manufacture" means any kind of working or processing including assembly or specific operations;

(b) "material" means any ingredient, raw material, component or part, etc., used in the manufacture of the product;

(c) "product" means the product being manufactured, even if it is intended for later use in another manufacturing operation;

(d) "goods" means both materials and products;

(e) "customs value" means the value as determined in accordance with the 1994 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on customs valuation);

(f) "ex-works price" means the price paid for the product ex works to the manufacturer in the Community or in Croatia in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the product obtained is exported;

(g) "value of materials" means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the Community or in Croatia;

(h) "value of originating materials" means the value of such materials as defined in subparagraph(g) applied mutatis mutandis;

(i) "added value" shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other Contracting Party or, where the customs value is not known or cannot be ascertained, the first ascertainable price for the materials in the Community or Croatia;

(j) "chapters" and "headings" mean the chapters and the headings (four-digit codes) used in the nomenclature which makes up the Harmonised Commodity Description and Coding System, referred to in this Protocol as "the Harmonised System" or "HS";

(k) "classified" refers to the classification of a product or material under a particular heading;

(l) "consignment" means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;

(m) "territories" includes territorial waters

TITLE II

DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

Article 2

General requirements

1. For the purpose of implementing this Agreement, the following products shall be considered as originating in the Community:

(a) products wholly obtained in the Community within the meaning of Article 5 of this Protocol;

(b) products obtained in the Community incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Community within the meaning of Article 6 of this Protocol;

2. For the purpose of implementing this Agreement, the following products shall be considered as originating in Croatia:

(a) products wholly obtained in Croatia within the meaning of Article 5 of this Protocol;

(b) products obtained in Croatia incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in Croatia within the meaning of Article 6 of this Protocol.

Article 3

Bilateral cumulation in the Community

Materials originating in Croatia shall be considered as materials originating in the Community when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond the operations referred to in Article 7.1.

Article 4

Bilateral cumulation in Croatia

Materials originating in the Community shall be considered as materials originating in Croatia when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond the operations referred to in Article 7.1.

Article 5

Wholly obtained products

1. The following shall be considered as wholly obtained in the Community or in Croatia:

(a) mineral products extracted from their soil or from their seabed;

(b) vegetable products harvested there;

(c) live animals born and raised there;

(d) products from live animals raised there;

(e) products obtained by hunting or fishing conducted there;

(f) products of sea fishing and other products taken from the sea outside the territorial waters of the Community or Croatia by their vessels;

(g) products made aboard their factory ships exclusively from products referred to in subparagraph (f);

(h) used articles collected there fit only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste;

(i) waste and scrap resulting from manufacturing operations conducted there;

(j) products extracted from marine soil or subsoil outside their territorial waters provided that they have sole rights to work that soil or subsoil;

(k) goods produced there exclusively from the products specified in subparagraphs(a) to (j).

2. The terms "their vessels" and "their factory ships" in paragraph 1(f) and (g) shall apply only to vessels and factory ships:

(a) which are registered or recorded in a Member State or in Croatia;

(b) which sail under the flag of a Member State or of Croatia;

(c) which are owned to an extent of at least 50 per cent by nationals of Member States or of Croatia, or by a company with its head office in one of these States, of which the manager or managers, Chairman of the Board of Directors or the Supervisory Board, and the majority of the members of such boards are nationals of Member States or of Croatia and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or to public bodies or nationals of the said States;

(d) of which the master and officers are nationals of Member States or Croatia;

and

(e) of which at least 75 per cent of the crew are nationals of Member States or Croatia.

Article 6

Sufficiently worked or processed products

1. For the purposes of Article 2, products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list in Annex II are fulfilled.

The conditions referred to above indicate, for all products covered by this Agreement, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. Accordingly, it follows that if a product, which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

2. Notwithstanding paragraph 1, non-originating materials which, according to the conditions set out in the list, should not be used in the manufacture of a product may nevertheless be used, provided that:

(a) their total value does not exceed 10 per cent of the ex-works price of the product;

(b) any of the percentages given in the list for the maximum value of non-originating materials are not exceeded through the application of this paragraph.

This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonised System.

3. Paragraphs 1 and 2 shall apply except as provided in Article 7.

Article 7

Insufficient working or processing operations

1. Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 6 are satisfied:

(a) preserving operations to ensure that the products remain in good condition during transport and storage;

(b) breaking-up and assembly of packages;

(c) washing, cleaning; removal of dust, oxide, oil, paint or other coverings;

(d) ironing or pressing of textiles;

(e) simple painting and polishing operations;

(f) husking, partial or total bleaching, polishing, and glazing of cereals and rice;

(g) operations to colour sugar or form sugar lumps;

(h) peeling, stoning and shelling, of fruits, nuts and vegetables;

(i) sharpening, simple grinding or simple cutting;

(j) sifting, screening, sorting, classifying, grading, matching; (including the making-up of sets of articles);

(k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;

(l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;

(m) simple mixing of products, whether or not of different kinds,

(n) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;

(o) a combination of two or more operations specified in subparagraphs (a) to (n);

(p) slaughter of animals.

2. All operations carried out either in the Community or in Croatia on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.

Article 8

Unit of qualification

1. The unit of qualification for the application of the provisions of this Protocol shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonised System.

Accordingly, it follows that:

(a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading, the whole constitutes the unit of qualification;

(b) when a consignment consists of a number of identical products classified under the same heading of the Harmonised System, each product must be taken individually when applying the provisions of this Protocol.

2. Where, under General Rule 5 of the Harmonised System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.

Article 9

Accessories, spare parts and tools

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 10

Sets

Sets, as defined in General Rule 3 of the Harmonised System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15 per cent of the ex-works price of the set.

Article 11

Neutral elements

In order to determine whether a product originates, it shall not be necessary to determine the origin of the following which might be used in its manufacture:

(a) energy and fuel;

(b) plant and equipment;

(c) machines and tools;

(d) goods which do not enter and which are not intended to enter into the final composition of the product.

TITLE III

TERRITORIAL REQUIREMENTS

Article 12

Principle of territoriality

1. The conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or in Croatia.

2. If originating goods exported from the Community or from Croatia to another country are returned, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:

(a) the returning goods are the same as those that were exported;

and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Croatia on materials exported from the Community or Croatia and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Croatia or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

(i) the reimported goods have been obtained by working or processing the exported materials;

and

(ii) the total added value acquired outside the Community or Croatia by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Croatia. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Croatia by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraph 3 and 4, 'total added value' shall be taken to mean all costs arising outside the Community or Croatia, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II and which can be considered sufficiently worked or processed only if the general values fixed in Article 6.2 are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Croatia shall be done under the outward processing arrangements, or similar arrangements.

Article 13

Direct transport

1. The preferential treatment provided for under the Agreement applies only to products, satisfying the requirements of this Protocol, which are transported directly between the Community and Croatia. However, products constituting one single consignment may be transported through other territories with, should the occasion arise, trans-shipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition.

Originating products may be transported by pipeline across territory other than that of the Community or Croatia.

2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing country by the production of:

(a) a single transport document covering the passage from the exporting country through the country of transit; or

(b) a certificate issued by the customs authorities of the country of transit:

(i) giving an exact description of the products;

(ii) stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used;

and

(iii) certifying the conditions under which the products remained in the transit country; or

(c) failing these, any substantiating documents

Article 14

Exhibitions

1. Originating products, sent for exhibition in a country other than the Community or Croatia shall benefit on importation from the provisions of the Agreement provided it is shown to the satisfaction of the customs authorities that:

(a) an exporter has consigned these products from the Community or Croatia to the country in which the exhibition is held and has exhibited them there;

(b) the products have been sold or otherwise disposed of by that exporter to a person in the Community or Croatia;

(c) the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition;

and

(d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.

2. A proof of origin must be issued or made out in accordance with the provisions of Title V and submitted to the customs authorities of the importing country in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been exhibited may be required

3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products, and during which the products remain under customs control.

TITLE IV

DRAWBACK OR EXEMPTION

Article 15

Prohibition of drawback of, or exemption from, customs duties

1. Non-originating materials used in the manufacture of products originating in the Community or in Croatia, for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in the Community or in Croatia to drawback of, or exemption from, customs duties of whatever kind.

2. The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or non-payment, partial or complete, of customs duties or charges having an equivalent effect, applicable in the Community or in Croatia to materials used in the manufacture where such refund, remission or non-payment applies, expressly or in effect, when products obtained from the said materials are exported and not when they are retained for home use there.

3. The exporter of products covered by a proof of origin shall be prepared to submit at any time, upon request from the customs authorities, all appropriate documents proving that no drawback has been obtained in respect of the non-originating materials used in the manufacture of the products concerned and that all customs duties or charges having equivalent effect applicable to such materials have actually been paid.

4. The provisions of paragraphs 1 to 3 shall also apply in respect of packaging within the meaning of Article 8(2), accessories, spare parts and tools within the meaning of Article 9 and products in a set within the meaning of Article 10 when such items are non-originating.

5. The provisions of paragraphs 1 to 4 shall apply only in respect of materials which are of the kind to which the Agreement applies. Furthermore, they shall not preclude the application of an export refund system for agricultural products, applicable upon export in accordance with the provisions of the Agreement.

6. Notwithstanding paragraph 1, Croatia may apply arrangements for drawback of, or exemption from, customs duties or charges having an equivalent effect, applicable to materials used in the manufacture of originating products, subject to the following provisions:

(a) a 5 per cent rate of customs charge shall be retained in respect of products falling within Chapters 25 to 49 and 64 to 97 of the Harmonised System, or such lower rate as is in force in Croatia;

(b) a 10 per cent rate of customs charge shall be retained in respect of products falling within Chapters 50 to 63 of the Harmonised System, or such lower rate as is in force in Croatia.

7. The provisions of this Article shall apply from 1 January 2003. The provisions of paragraph 6 shall apply until 31 December 2005 and may be reviewed by common accord.

TITLE V

PROOF OF ORIGIN

Article 16

General requirements

1. Products originating in the Community shall, on importation into Croatia and products originating in Croatia shall, on importation into the Community benefit from this Agreement upon submission of either:

(a) a movement certificate EUR.1, a specimen of which appears in Annex III;

(b) in the cases specified in Article21.1, a declaration, the text of which appears in Annex IV, given by the exporter on an invoice, a delivery note or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified (hereinafter referred to as the "invoice declaration").

2. Notwithstanding paragraph 1, originating products within the meaning of this Protocol shall, in the cases specified in Article 26, benefit from this Agreement without it being necessary to submit any of the documents referred to above.

Article 17

Procedure for the issue of a movement certificate EUR.1

1. A movement certificate EUR.1 shall be issued by the customs authorities of the exporting country on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorised representative.

2. For this purpose, the exporter or his authorised representative shall fill out both the movement certificate EUR.1 and the application form, specimens of which appear in Annex III. These forms shall be completed in one of the languages in which this Agreement is drawn up and in accordance with the provisions of the domestic law of the exporting country. If they are hand-written, they shall be completed in ink in printed characters. The description of the products must be given in the box reserved for this purpose without leaving any blank lines. Where the box is not completely filled, a horizontal line must be drawn below the last line of the description, the empty space being crossed through.

3. The exporter applying for the issue of a movement certificate EUR.1 shall be prepared to submit at any time, at the request of the customs authorities of the exporting country where the movement certificate EUR.1 is issued, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol.

4. A movement certificate EUR.1 shall be issued by the customs authorities of a Member State or Croatia if the products concerned can be considered as products originating in the Community or in Croatia and fulfil the other requirements of this Protocol.

5. The issuing customs authorities shall take any steps necessary to verify the originating status of the products and the fulfilment of the other requirements of this Protocol. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate. The issuing customs authorities shall also ensure that the forms referred to in paragraph 2 are duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions.

6. The date of issue of the movement certificate EUR.1 shall be indicated in Box 11 of the certificate.

7. A movement certificate EUR.1 shall be issued by the customs authorities and made available to the exporter as soon as actual exportation has been effected or ensured.

Article 18

Movement certificates EUR.1 issued retrospectively

1. Notwithstanding Article 17(7), a movement certificate EUR.1 may exceptionally be issued after exportation of the products to which it relates if:

(a) it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances;

(b) it is demonstrated to the satisfaction of the customs authorities that a movement certificate EUR.1 was issued but was not accepted at importation for technical reasons.

2. For the implementation of paragraph 1, the exporter must indicate in his application the place and date of exportation of the products to which the movement certificate EUR.1 relates, and state the reasons for his request.

3. The customs authorities may issue a movement certificate EUR.1 retrospectively only after verifying that the information supplied in the exporter's application agrees with that in the corresponding file.

4. Movement certificates EUR.1 issued retrospectively must be endorsed with one of the following phrases:

"NACHTRÄGLICH AUSGESTELLT", "DELIVRE A POSTERIORI",

"RILASCIATO A POSTERIORI", "AFGEGEVEN A POSTERIORI",

"ISSUED RETROSPECTIVELY", "UDSTEDT EFTERFØLGENDE",

"ÅÊÄÏÈÅÍ ÅÊ ÔÙÍ ÕÓÔÅÑÙÍ", "EXPEDIDO A POSTERIORI",

"EMITIDO A POSTERIORI", "ANNETTU JÄLKIKÄTEEN",

"UTFÄRDAT I EFTERHAND", "D O P O L N I T E L N O I Z D A D EN O"

"NAKNADNO IZDANO"

5. The endorsement referred to in paragraph 4 shall be inserted in the "Remarks" box of the movement certificate EUR.1.

Article 19

Issue of a duplicate movement certificate EUR.1

1. In the event of theft, loss or destruction of a movement certificate EUR.1, the exporter may apply to the customs authorities which issued it for a duplicate made out on the basis of the export documents in their possession.

2. The duplicate issued in this way must be endorsed with one of the following words:

"DUPLIKAT", "DUPLICATA", "DUPLICATO", "DUPLICAAT", "DUPLICATE", "ÁÍÔÉÃÑÁÖÏ", "DUPLICADO", "SEGUNDA VIA", "KAKSOISKAPPALE",

"D U P L I K A T" "DUPLIKAT"

3. The endorsement referred to in paragraph 2 shall be inserted in the "Remarks" box of the duplicate movement certificate EUR.1.

4. The duplicate, which must bear the date of issue of the original movement certificate EUR.1, shall take effect as from that date.

Article 20

Issue of movement certificates EUR.1 on the basis of a

proof of origin issued or made out previously

When originating products are placed under the control of a customs office in the Community or in Croatia, it shall be possible to replace the original proof of origin by one or more movement certificates EUR.1 for the purpose of sending all or some of these products elsewhere within the Community or in Croatia. The replacement movement certificate(s) EUR.1 shall be issued by the customs office under whose control the products are placed.

Article 21

Conditions for making out an invoice declaration

1. An invoice declaration as referred to in Article 16.1 (b) may be made out:

(a) by an approved exporter within the meaning of Article 22,

(b) by any exporter for any consignment consisting of one or more packages containing originating products whose total value does not exceed EUR 6 000.

2. An invoice declaration may be made out if the products concerned can be considered as products originating in the Community or in Croatia and fulfil the other requirements of this Protocol.

3. The exporter making out an invoice declaration shall be prepared to submit at any time, at the request of the customs authorities of the exporting country, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol.

4. An invoice declaration shall be made out by the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Annex IV, using one of the linguistic versions set out in that Annex and in accordance with the provisions of the domestic law of the exporting country. If the declaration is hand-written, it shall be written in ink in printed characters.

5. Invoice declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter within the meaning of Article 22 shall not be required to sign such declarations provided that he gives the customs authorities of the exporting country a written undertaking that he accepts full responsibility for any invoice declaration which identifies him as if it had been signed in manuscript by him.

6. An invoice declaration may be made out by the exporter when the products to which it relates are exported, or after exportation on condition that it is presented in the importing country no longer than two years after the importation of the products to which it relates.

Article 22

Approved exporter

1. The customs authorities of the exporting country may authorise any exporter (hereinafter referred to as "approved exporter") who makes frequent shipments of products under this Agreement to make out invoice declarations irrespective of the value of the products concerned. An exporter seeking such authorisation must offer to the satisfaction of the customs authorities all guarantees necessary to verify the originating status of the products as well as the fulfilment of the other requirements of this Protocol.

2. The customs authorities may grant the status of approved exporter subject to any conditions which they consider appropriate.

3. The customs authorities shall grant to the approved exporter a customs authorisation number which shall appear on the invoice declaration.

4. The customs authorities shall monitor the use of the authorisation by the approved exporter.

5. The customs authorities may withdraw the authorisation at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, does not fulfil the conditions referred to in paragraph 2 or otherwise makes an incorrect use of the authorisation.

Article 23

Validity of proof of origin

1. A proof of origin shall be valid for four months from the date of issue in the exporting country, and must be submitted within the said period to the customs authorities of the importing country.

2. Proofs of origin which are submitted to the customs authorities of the importing country after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances.

3. In other cases of belated presentation, the customs authorities of the importing country may accept the proofs of origin where the products have been submitted before the said final date.

Article 24

Submission of proof of origin

Proofs of origin shall be submitted to the customs authorities of the importing country in accordance with the procedures applicable in that country. The said authorities may require a translation of a proof of origin and may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the conditions required for the implementation of the Agreement.

Article 25

Importation by instalments

Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing country, dismantled or non-assembled products within the meaning of General Rule 2(a) of the Harmonised System falling within Sections XVI and XVII or heading Nos 7308 and 9406 of the Harmonised System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.

Article 26

Exemptions from proof of origin

1. Products sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the submission of a proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this Protocol and where there is no doubt as to the veracity of such a declaration. In the case of products sent by post, this declaration can be made on the customs declaration CN22/CN23 or on a sheet of paper annexed to that document.

2 Imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is in view.

3. Furthermore, the total value of these products shall not exceed EUR 500 in the case of small packages or EUR 1 200 in the case of products forming part of travellers' personal luggage.

Article 27

Supporting documents

The documents referred to in Articles 17.3 and 21.3 used for the purpose of proving that products covered by a movement certificate EUR.1 or an invoice declaration can be considered as products originating in the Community or in Croatia and fulfil the other requirements of this Protocol may consist inter alia of the following:

(a) direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal bookkeeping;

(b) documents proving the originating status of materials used, issued or made out in the Community or in Croatia where these documents are used in accordance with domestic law;

(c) documents proving the working or processing of materials in the Community or in Croatia, issued or made out in the Community or in Croatia, where these documents are used in accordance with domestic law;

(d) movement certificates EUR.1 or invoice declarations proving the originating status of materials used, issued or made out in the Community or in Croatia in accordance with this Protocol.

Article 28

Preservation of proof of origin and supporting documents

1. The exporter applying for the issue of a movement certificate EUR.1 shall keep for at least three years the documents referred to in Article 17.3.

2 The exporter making out an invoice declaration shall keep for at least three years a copy of this invoice declaration as well as the documents referred to in Article 21.3.

3. The customs authorities of the exporting country issuing a movement certificate EUR.1 shall keep for at least three years the application form referred to in Article 17.2.

4. The customs authorities of the importing country shall keep for at least three years the movement certificates EUR.1 and the invoice declarations submitted to them.

Article 29

Discrepancies and formal errors

1. The discovery of slight discrepancies between the statements made in the proof of origin and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto render the proof of origin null and void if it is duly established that this document does correspond to the products submitted.

2. Obvious formal errors such as typing errors on a proof of origin should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.

Article 30

Amounts expressed in euro

1. For the application of the provisions of Article 21.1(b) and Article 26.3 in cases where products are invoiced in a currency other than euro, amounts in the national currencies of the Member States or Croatia equivalent to the amounts expressed in euro shall be fixed annually by each of the countries concerned.

2. A consignment shall benefit from the provisions of Article 21.1(b) or Article 26.3 by reference to the currency in which the invoice is drawn up, according to the amount fixed by the Community or Croatia.

3. The amounts to be used in any given national currency shall be the equivalent in that currency of the amounts expressed in euro as at the first working day of October. The amounts shall be communicated to the Commission of the European Communities by 15 October and shall apply from 1 January the following year. The Commission of the European Communities shall notify Croatia of the relevant amounts.

4. Croatia may round up or down the amount resulting from the conversion into its national currency of an amount expressed in euro. The rounded-off amount may not differ from the amount resulting from the conversion by more than 5 per cent. Croatia may retain unchanged its national currency equivalent of an amount expressed in euro if, at the time of the annual adjustment provided for in paragraph 3, the conversion of that amount, prior to any rounding-off, results in an increase of less that 15 per cent in the national currency equivalent. The national currency equivalent may be retained unchanged if the conversion would result in a decrease in that equivalent value.

5. The amounts expressed in euro shall be reviewed by the Stabilisation and Association Committee at the request of the Community or Croatia. When carrying out this review, the Stabilisation and Association Committee shall consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in euro.'

TITLE VI

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 31

Mutual assistance

1. The customs authorities of the Member States and of Croatia shall provide each other, through the Commission of the European Communities, with specimen impressions of stamps used in their customs offices for the issue of movement certificates EUR.1 and with the addresses of the customs authorities responsible for verifying those certificates and invoice declarations.

2. In order to ensure the proper application of this Protocol, the Community and Croatia shall assist each other, through the competent customs administrations, in checking the authenticity of the movement certificates EUR.1 or the invoice declarations and the correctness of the information given in these documents.

Article 32

Verification of proofs of origin

1. Subsequent verifications of proofs of origin shall be carried out at random or whenever the customs authorities of the importing country have reasonable doubts as to the authenticity of such documents, the originating status of the products concerned or the fulfilment of the other requirements of this Protocol.

2. For the purposes of implementing the provisions of paragraph 1, the customs authorities of the importing country shall return the movement certificate EUR.1 and the invoice, if it has been submitted, the invoice declaration, or a copy of these documents, to the customs authorities of the exporting country giving, where appropriate, the reasons for the enquiry. Any documents and information obtained suggesting that the information given on the proof or origin is incorrect shall be forwarded in support of the request for verification.

3. The verification shall be carried out by the customs authorities of the exporting country. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate.

4. If the customs authorities of the importing country decide to suspend the granting of preferential treatment to the products concerned while awaiting the results of the verification, release of the products shall be offered to the importer subject to any precautionary measures judged necessary.

5. The customs authorities requesting the verification shall be informed of the results of this verification as soon as possible. These results must indicate clearly whether the documents are authentic and whether the products concerned can be considered as products originating in the Community or in Croatia and fulfil the other requirements of this Protocol. Where the cumulation provisions in accordance with Article 3 and 4 of this Protocol were applied and in connection with Article 17.3, the reply shall include a copy (copies) of the movement certificate(s) or invoice declaration(s) relied upon.

6. If in cases of reasonable doubt there is no reply within ten months of the date of the verification request or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the requesting customs authorities shall, except in exceptional circumstances, refuse entitlement to the preferences.

Article 33

Dispute settlement

Where disputes arise in relation to the verification procedures of Article 32 which cannot be settled between the customs authorities requesting a verification and the customs authorities responsible for carrying out this verification or where they raise a question as to the interpretation of this Protocol, they shall be submitted to the Stabilisation and Association Committee.

In all cases the settlement of disputes between the importer and the customs authorities of the importing country shall be under the legislation of the said country.

Article 34

Penalties

Penalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect information for the purpose of obtaining a preferential treatment for products.

Article 35

Free zones

1. The Community and Croatia shall take all necessary steps to ensure that products traded under cover of a proof of origin which in the course of transport use a free zone situated in their territory, are not substituted by other goods and do not undergo handling other than normal operations designed to prevent their deterioration.

2. By means of an exemption to the provisions contained in paragraph 1, when products originating in the Community or in Croatia are imported into a free zone under cover of a proof of origin and undergo treatment or processing, the authorities concerned shall issue a new EUR.1 certificate at the exporter's request, if the treatment or processing undergone is in conformity with the provisions of this Protocol.

TITLE VII

CEUTA AND MELILLA

Article 36

Application of the Protocol

1. The term "Community" used in Article 2 does not cover Ceuta and Melilla.

2. Products originating in Croatia, when imported into Ceuta or Melilla, shall enjoy in all respects the same customs regime as that which is applied to products originating in the customs territory of the Community under Protocol 2 of the Act of Accession of the Kingdom of Spain and the Portuguese Republic to the European Communities. Croatia shall grant to imports of products covered by the Agreement and originating in Ceuta and Melilla the same customs regime as that which is granted to products imported from and originating in the Community.

3. For the purpose of the application of paragraph 2 concerning products originating in Ceuta and Melilla, this Protocol shall apply mutatis mutandis subject to the special conditions set out in Article 37.

Article 37

Special conditions

1. Providing they have been transported directly in accordance with the provisions of Article 13, the following shall be considered as:

(1) products originating in Ceuta and Melilla:

(a) products wholly obtained in Ceuta and Melilla;

(b) products obtained in Ceuta and Melilla in the manufacture of which products other than those referred to in (a) are used, provided that:

(i) the said products have undergone sufficient working or processing within the meaning of Article 6 of this Protocol; or that

(ii) those products are originating in Croatia or the Community within the meaning of this Protocol, provided that they have been submitted to working or processing which goes beyond the insufficient working or processing referred to in Article 7.1.

(2) products originating in Croatia:

(a) products wholly obtained in Croatia;

(b) products obtained in Croatia, in the manufacture of which products other than those referred to in (a) are used, provided that:

(i) the said products have undergone sufficient working or processing within the meaning of Article 6 of this Protocol;

or that

(ii) those products are originating in Ceuta and Melilla or the Community within the meaning of this Protocol, provided that they have been submitted to working or processing which goes beyond the insufficient working or processing referred to in Article 7(1).

2. Ceuta and Melilla shall be considered as a single territory.

3. The exporter or his authorised representative shall enter "Croatia" and "Ceuta and Melilla" in Box 2 of movement certificates EUR.1 or on invoice declarations. In addition, in the case of products originating in Ceuta and Melilla, this shall be indicated in Box 4 of movement certificates EUR.1 or on invoice declarations.

4. The Spanish customs authorities shall be responsible for the application of this Protocol in Ceuta and Melilla.

TITLE VIII

FINAL PROVISIONS

Article 38

Amendments to the Protocol

The Stabilisation and Association Council may decide to amend the provisions of this Protocol.

Annex I

Introductory notes to the list in Annex II

Note 1:

The list sets out the conditions required for all products to be considered as sufficiently worked or processed within the meaning of Article 6.

Note 2:

2.1. The first two columns in the list describe the product obtained. The first column gives the heading number or Chapter number used in the Harmonised System and the second column gives the description of goods used in that system for that heading or Chapter. For each entry in the first two columns a rule is specified in column 3 or 4. Where, in some cases, the entry in the first column is preceded by an "ex", this signifies that the rules in column 3 or 4 apply only to the part of that heading as described in column 2.

2.2. Where several heading numbers are grouped together in column 1 or a Chapter number is given and the description of products in column 2 is therefore given in general terms, the adjacent rules in column 3 or 4 apply to all products which, under the Harmonised System, are classified in headings of the Chapter or in any of the headings grouped together in column 1.

2.3. Where there are different rules in the list applying to different products within a heading, each indent contains the description of that part of the heading covered by the adjacent rules in column3 or 4.

2.4. Where, for an entry in the first two columns, a rule is specified in both columns 3 and 4, the exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 has to be applied.

Note 3:

3.1. The provisions of Article 6, concerning products having acquired originating status which are used in the manufacture of other products, shall apply, regardless of whether this status has been acquired inside the factory where these products are used or in another factory in Croatia or in the Community.

Example:

An engine of heading No 8407, for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40 % of the ex-works price, is made from "other alloy steel roughly shaped by forging" of heading No ex 7224.

If this forging has been forged in Croatia from a non-originating ingot, it has already acquired originating status by virtue of the rule for heading No ex 7224 in the list. The forging can then count as originating in the value-calculation for the engine, regardless of whether it was produced in the same factory or in another factory in Croatia. The value of the non-originating ingot is thus not taken into account when adding up the value of the non-originating materials used.

3.2. The rule in the list represents the minimum amount of working or processing required, and the carrying-out of more working or processing also confers originating status; conversely, the carrying-out of less working or processing cannot confer originating status. Thus, if a rule provides that non-originating material, at a certain level of manufacture, may be used, the use of such material at an earlier stage of manufacture is allowed, and the use of such material at a later stage is not.

3.3. Without prejudice to Note 3.2, where a rule states that "materials of any heading" may be used, materials of the same heading as the product may also be used, subject, however, to any specific limitations which may also be contained in the rule. However, the expression "manufacture from materials of any heading, including other materials of heading No ..." means that only materials classified in the same heading as the product and of a different description than that of the product as given in column 2 of the list may be used.

3.4. When a rule in the list specifies that a product may be manufactured from more than one material, this means that one or more materials may be used. It does not require that all be used.

Example:

The rule for fabrics of headings Nos5208 to 5212 provides that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; it is possible to use one or the other, or both.

3.5. Where a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule. (See also Note 6.2 below in relation to textiles).

Example:

The rule for prepared foods of heading No 1904, which specifically excludes the use of cereals and their derivatives, does not prevent the use of mineral salts, chemicals and other additives which are not products from cereals.

However, this does not apply to products which, although they cannot be manufactured from the particular materials specified in the list, can be produced from a material of the same nature at an earlier stage of manufacture.

Example:

In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth - even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn - that is, the fibre stage.

3.6. Where, in a rule in the list, two percentages are given for the maximum value of non-originating materials that can be used, then these percentages may not be added together. In other words, the maximum value of all the non-originating materials used may never exceed the higher of the percentages given. Furthermore, the individual percentages must not be exceeded, in relation to the particular materials to which they apply.

Note 4:

4.1. The term "natural fibres" is used in the list to refer to fibres other than artificial or synthetic fibres. It is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres which have been carded, combed or otherwise processed, but not spun.

4.2. The term "natural fibres" includes horsehair of heading No0503, silk of headings Nos 5002 and 5003, as well as wool-fibres and fine or coarse animal hair of headings Nos 5101 to 5105, cotton fibres of headings Nos 5201 to 5203, and other vegetable fibres of headings Nos5301 to 5305.

4.3. The terms "textile pulp", "chemical materials" and "paper-making materials" are used in the list to describe the materials, not classified in Chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns.

4.4. The term "man-made staple fibres" is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of headings Nos 5501 to 5507.

Note 5:

5.1. Where, for a given product in the list, reference is made to this Note, the conditions set out in column 3 shall not be applied to any basic textile materials used in the manufacture of this product and which, taken together, represent 10% or less of the total weight of all the basic textile materials used. (See also Notes 5.3 and 5.4 below.)

5.2. However, the tolerance mentioned in Note 5.1 may be applied only to mixed products which have been made from two or more basic textile materials.

The following are the basic textile materials:

- silk,

- wool,

- coarse animal hair,

- fine animal hair,

- horsehair,

- cotton,

- paper-making materials and paper,

- flax,

- true hemp,

- jute and other textile bast fibres,

- sisal and other textile fibres of the genus Agave,

- coconut, abaca , ramie and other vegetable textile fibres,

- synthetic man-made filaments,

- artificial man-made filaments,

- current-conducting filaments,

- synthetic man-made staple fibres of polypropylene,

- synthetic man-made staple fibres of polyester,

- synthetic man-made staple fibres of polyamide,

- synthetic man-made staple fibres of polyacrylonitrile,

- synthetic man-made staple fibres of polyimide,

- synthetic man-made staple fibres of polytetrafluoroethylene,

- synthetic man-made staple fibres of polyphenylene sulphide,

- synthetic man-made staple fibres of polyvinyl chloride,

- other synthetic man-made staple fibres,

- artificial man-made staple fibres of viscose,

- other artificial man-made staple fibres,

- yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped,

- yarn made of polyurethane segmented with flexible segments of polyester, whether or not gimped,

- products of heading No 5605 (metallised yarn) incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film,

- other products of heading No 5605.

Example:

A yarn, of heading No 5205, made from cotton fibres of heading No 5203 and synthetic staple fibres of heading No 5506, is a mixed yarn. Therefore, non-originating synthetic staple fibres which do not satisfy the origin-rules (which require manufacture from chemical materials or textile pulp) may be used up to a weight of 10% of the yarn.

Example:

A woollen fabric, of heading No 5112, made from woollen yarn of heading No 5107 and synthetic yarn of staple fibres of heading No 5509, is a mixed fabric. Therefore, synthetic yarn which does not satisfy the origin-rules (which require manufacture from chemical materials or textile pulp), or woollen yarn which does not satisfy the origin-rules (which require manufacture from natural fibres, not carded or combed or otherwise prepared for spinning), or a combination of the two, may be used provided their total weight does not exceed 10 % of the weight of the fabric.

Example:

Tufted textile fabric, of heading No 5802, made from cotton yarn of heading No 5205 and cotton fabric of heading No 5210, is a only mixed product if the cotton fabric is itself a mixed fabric made from yarns classified in two separate headings, or if the cotton yarns used are themselves mixtures.

Example:

If the tufted textile fabric concerned had been made from cotton yarn of heading No 5205 and synthetic fabric of heading No 5407, then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is, accordingly, a mixed product.

5.3. In the case of products incorporating "yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped", this tolerance is 20 % in respect of this yarn.

5.4. In the case of products incorporating "strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of an adhesive between two layers of plastic film", this tolerance is 30 % in respect of this strip

Note 6:

6.1. Where, in the list, reference is made to this Note, textile materials (with the exception of linings and interlinings), which do not satisfy the rule set out in the list in column 3 for the made-up product concerned, may be used, provided that they are classified in a heading other than that of the product and that their value does not exceed 8 % of the ex-works price of the product.

6.2. Without prejudice to Note 6.3, materials, which are not classified within Chapters 50 to 63, may be used freely in the manufacture of textile products, whether or not they contain textiles.

Example:

If a rule in the list provides that, for a particular textile item (such as trousers), yarn must be used, this does not prevent the use of metal items, such as buttons, because buttons are not classified within Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners, even though slide-fasteners normally contain textiles.

6.3. Where a percentage-rule applies, the value of materials which are not classified within Chapters 50 to 63 must be taken into account when calculating the value of the non-originating materials incorporated.

Note 7:

7.1. For the purposes of headings Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, the "specific processes" are the following:

(a) vacuum-distillation;

(b) redistillation by a very thorough fractionation-process; [6]

[6] See Additional Explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature.

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(i) isomerisation.

7.2. For the purposes of headings Nos 2710, 2711 and 2712, the "specific processes" are the following:

(a) vacuum-distillation;

(b) redistillation by a very thorough fractionation-process T [7];

[7] See Additional Explanatory Note 4 (b) to Chapter 27 of the Combined Nomenclature.

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(ij) isomerisation;

(k) in respect of heavy oils of heading No ex 2710 only, desulphurisation with hydrogen, resulting in a reduction of at least 85 % of the sulphur-content of the products processed (ASTM D 1266-59 T method);

(l) in respect of products of heading No 2710 only, deparaffining by a process other than filtering;

(m) in respect of heavy oils of heading No ex 2710 only, treatment with hydrogen, at a pressure of more than 20 bar and a temperature of more than 250 °C, with the use of a catalyst, other than to effect desulphurization, when the hydrogen constitutes an active element in a chemical reaction. The further treatment, with hydrogen, of lubricating oils of heading No ex 2710 (e.g. hydrofinishing or decolourisation), in order, more especially, to improve colour or stability shall not, however, be deemed to be a specific process;

(n) in respect of fuel oils of heading No ex 2710 only, atmospheric distillation, on condition that less than 30 % of these products distils, by volume, including losses, at 300 °C, by the ASTM D 86 method;

(o) in respect of heavy oils other than gas oils and fuel oils of heading No ex 2710 only, treatment by means of a high-frequency electrical brush-discharge.

7.3. For the purposes of headings Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, simple operations, such as cleaning, decanting, desalting, water-separation, filtering, colouring, marking, obtaining a sulphur-content as a result of mixing products with different sulphur-contents, or any combination of these operations or like operations, do not confer origin.

ANNEX II

LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING MATERIALS IN ORDER THAT THE PRODUCT MANUFACTURED CAN OBTAIN ORIGINATING STATUS

&gt;TABLE POSITION&gt;

ANNEX III

MOVEMENT CERTIFICATE EUR.1 AND

APPLICATION FOR A MOVEMENT CERTIFICATE EUR.1

1. Each form shall measure 210 x 297 mm; a tolerance of up to minus 5 mm or plus 8 mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighting not less than 25 g/m2. It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye.

2. The competent authorities of the parties may reserve the right to print the forms themselves or may have them printed by approved printers. In the latter case, each form must include a reference to such approval. Each form must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified.

MOVEMENT CERTIFICATE

&gt;TABLE POSITION&gt;

13. REQUEST FOR VERIFICATION, to:

// 14. RESULT OF VERIFICATION

// Verification carried out shows that this certificate \*

// ñ was issued by the customs office or the competent governmental authority indicated and that the information contained therein is accurate.

Verification of the authenticity and accuracy of this certificate is requested

......................................................

......................................................

......................................................

.......................................................................

(Place and date)

...........................................................

...........................................................

...........................................................

Stamp

...................................................

(Signature)

// ñ does not meet the requirements as to authenticity and accuracy (see remarks appended

....................................................

.......................................................

.......................................................

.......................................................

(Place and date)

............................................................

.............................................................

..........................................................

Stamp

......................................................

(Signature)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\*Insert X in the appropriate box.

//

NOTES

1. The certificate must not contain erasures or words written over one another. Any alterations must be made by deleting the incorrect particulars and adding any necessary corrections. Any such alteration must be initialled by the person who completed the certificate and endorsed by the customs authorities or the competent governmental authority of the issuing country or territory.

2. No spaces must be left between the items entered on the certificate and each item must be preceded by an item number. A horizontal line must be drawn immediately below the last item. Any unused space must be struck through in such a manner as to make any later additions impossible.

3. Goods must be described in accordance with commercial practice and with sufficient detail to enable them to be identified.

APPLICATION FOR A MOVEMENT CERTIFICATE

&gt;TABLE POSITION&gt;

DECLARATION BY THE EXPORTER

I, the undersigned, exporter of the goods described overleaf,

DECLARE that the goods meet the conditions required for the issue of the attached certificate;

SPECIFY as follows the circumstances which have enabled these goods to meet the above conditions:

.....................................................................................................................................................

.....................................................................................................................................................

.....................................................................................................................................................

SUBMIT the following supporting documents [8]:

[8] For example, import documents, movement certificates, invoices, manufacturer's declaration, etc..

.....................................................................................................................................................

.....................................................................................................................................................

.....................................................................................................................................................

UNDERTAKE to submit, at the request of the appropriate authorities any supporting evidence which these authorities may require for the purpose of issuing the attached certificate, and undertake, if required, to agree to any inspection of my accounts and to any check on the processes of manufacture of the above goods, carried out by the said authorities;

REQUEST the issue of the attached certificate for these goods.

.....................................................................................................................................................

(place and date)

.....................................................................................................................................................

(signature)

ANNEX IV

Invoice declaration

The invoice declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced.

French Version

L'exportateur des produits couverts par le présent document (autorisation douanière n° ... [9])déclare que, sauf indication claire du contraire, ces produits ont l'origine préférentielle ... [10].

[9] When the invoice declaration is made out by an approval exporter, the authorization number of the approved exporter must be enter in this space. When the invoice declaration is not made out by an approval exporter, the words in brackets shall be omitted or the space left blank.

[10] Origin of products to be indicated. When the invoice declaration relates in whole or in part, to products originating in Ceuta and Mellila, the exporter must clearly indicate them in the document on which the declaration is made out by means of the symbol "CM".

Spanish Version

El exportador de los productos incluidos en el presente documento (autorización aduanera n° ...(1)) declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial ....(2).

Danish Version

Eksportøren af varer, der er omfattet af nærværende dokument, (toldmyndighedernes tilladelse nr. ...(1)), erklærer, at varerne, medmindre andet tydeligt er angivet, har præferenceoprindelse i ....(2).

German Version

Der Ausführer (Ermächtigter Ausführer; Bewilligungs-Nr. ..(1).) der Waren, auf die sich dieses Handelspapier bezieht, erklärt, dass diese Waren, soweit nicht anderes angegeben, präferenzbegünstigte ...(2) Ursprungswaren sind.

English Version

The exporter of the products covered by this document (customs authorization No ..(1).) declares that, except where otherwise clearly indicated, these products are of ...(2) preferential origin.

Italian Version

L'esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. ...(1)) dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale ....(2).

Dutch Version

De exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr. ...(1)), verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële ... oorsprong zijn.(2).

Portugese Version

O abaixo assinado, exportador dos produtos cobertos pelo presente documento (autorização aduaneira n°. ...(1)), declara que, salvo expressamente indicado em contrário, estes produtos são de origem preferencial ....(2).

Finnish Version

Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupa n:o ...(1)) ilmoittaa, että nämä tuotteet ovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja .... alkuperätuotteita.(2).

Swedish Version

Exportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr. ...(1)) försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande ....ursprung (2).

Greek Version

Ï åîáãùãÝáò ôùí ðñïúüíôùí ðïõ êáëýðôïíôáé áðü ôï ðáñüí Ýããñáöï (Üäåéá ôåëùíåßïõ õð´áñéè. ...(1)) äçëþíåé üôé, åêôüò åÜí äçëþíåôáé óáöþò Üëëùò, ôá ðñïúüíôá áõôÜ åßíáé ðñïôéìçóéáêÞò êáôáãùãÞò ....(2).

Croatian version

Izvoznik proizvoda obuhvaenih ovom ispravom (carinsko ovlastenje br...........(1)) izjavljuje da su, osim ako je to drukije izriito navedeno, ovi proizvodi ....(2) preferencijalnog podrijetla.

................................. [11] ...

[11] These indications may be omitted if the information is contained on the document itself

(Place and date)

................................. [12] ...

[12] In case where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory.

(Signature of the exporter, in addition the name of the person signing the declaration has to be indicated in clear script)

PROTOCOL 5

ON MUTUAL ADMINISTRATIVE ASSISTANCE

IN CUSTOMS MATTERS

Article 1

Definitions

For the purposes of this Protocol:

(a) "customs legislation" shall mean any legal or regulatory provisions applicable in the territories of the Contracting Parties, governing the import, export and transit of goods and their placing under any other customs regime or procedure, including measures of prohibition, restriction and control;

(b) "applicant authority" shall mean a competent administrative authority which has been designated by a Contracting Party for this purpose and which makes a request for assistance on the basis of this Protocol;

(c) "requested authority" shall mean a competent administrative authority which has been designated by a Contracting Party for this purpose and which receives a request for assistance on the basis of this Protocol;

(d) "personal data" shall mean all information relating to an identified or identifiable individual;

(e) "operation in breach of customs legislation" shall mean any violation or attempted violation of customs legislation.

Article 2

Scope

1. The Contracting Parties shall assist each other, in the areas within their competence, in the manner and under the conditions laid down in this Protocol, to ensure the correct application of the customs legislation, in particular by preventing, investigating and combating operations in breach of that legislation.

2. Assistance in customs matters, as provided for in this Protocol, shall apply to any administrative authority of the Contracting Parties which is competent for the application of this Protocol. It shall not prejudice the rules governing mutual assistance in criminal matters. Nor shall it cover information obtained under powers exercised at the request of a judicial authority, except where communication of such information is authorised by that authority.

3. Assistance to recover duties, taxes or fines is not covered by this Protocol.

Article 3

Assistance on request

1. At the request of the applicant authority, the requested authority shall provide it with all relevant information which may enable it to ensure that customs legislation is correctly applied, including information regarding activities noted or planned which are or could be operations in breach of customs legislation.

2. At the request of the applicant authority, the requested authority shall inform it:

(a) whether goods exported from the territory of one of the Contracting Parties have been properly imported into the territory of the other Contracting Party, specifying, where appropriate, the customs procedure applied to the goods;

(b) whether goods imported into the territory of one of the Contracting Parties have been properly exported from the territory of the other Party, specifying, where appropriate, the customs procedure applied to the goods.

3. At the request of the applicant authority, the requested authority shall, within the framework of its legal or regulatory provisions, take the necessary steps to ensure special surveillance of:

(a) natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been involved in operations in breach of customs legislation;

(b) places where stocks of goods have been or may be assembled in such a way that there are reasonable grounds for believing that these goods are intended to be used in operations in breach of customs legislation;

(c) goods that are or may be transported in such a way that there are reasonable grounds for believing that they are intended to be used in operations in breach of customs legislation;

(d) means of transport that are or may be used in such a way that there are reasonable grounds for believing that they are intended to be used in operations in breach of customs legislation.

Article 4

Spontaneous assistance

The Contracting Parties shall assist each other, at their own initiative and in accordance with their legal or regulatory provisions, if they consider that to be necessary for the correct application of customs legislation, particularly by providing information obtained pertaining to:

- activities which are or appear to be operations in breach of customs legislation and which may be of interest to the other Contracting Party;

- new means or methods employed in carrying out operations in breach of customs legislation;

- goods known to be subject to operations in breach of customs legislation;

- natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been involved in operations in breach of customs legislation;

- means of transport in respect of which there are reasonable grounds for believing that they have been, are, or may be used in operations in breach of customs legislation.

Article 5

Delivery, Notification

At the request of the applicant authority, the requested authority shall, in accordance with legal or regulatory provisions applicable to the latter, take all necessary measures in order:

- to deliver any documents or

- to notify any decisions,

emanating from the applicant authority and falling within the scope of this Protocol, to an addressee residing or established in the territory of the requested authority.

Requests for delivery of documents or notification of decisions shall be made in writing in an official language of the requested authority or in a language acceptable to that authority.

Article 6

Form and substance of requests for assistance

1. Requests pursuant to this Protocol shall be made in writing. They shall be accompanied by the documents necessary to enable compliance with the request. When required because of the urgency of the situation, oral requests may be accepted, but must be confirmed in writing immediately.

2. Requests pursuant to paragraph 1 shall include the following information:

(a) the applicant authority;

(b) the measure requested;

(c) the object of and the reason for the request;

(d) the legal or regulatory provisions and other legal elements involved;

(e) indications as exact and comprehensive as possible on the natural or legal persons who are the target of the investigations;

(f) a summary of the relevant facts and of the enquiries already carried out.

3. Requests shall be submitted in an official language of the requested authority or in a language acceptable to that authority. This requirement shall not apply to any documents that accompany the request under paragraph 1.

4. If a request does not meet the formal requirements set out above, its correction or completion may be requested; in the meantime precautionary measures may be ordered.

Article 7

Execution of requests

1. In order to comply with a request for assistance, the requested authority shall proceed, within the limits of its competence and available resources, as though it were acting on its own account or at the request of other authorities of that same Contracting Party, by supplying information already possessed, by carrying out appropriate enquiries or by arranging for them to be carried out. This provision shall also apply to any other authority to which the request has been addressed by the requested authority when the latter cannot act on its own.

2. Requests for assistance shall be executed in accordance with the legal or regulatory provisions of the requested Contracting Party.

3. Duly authorised officials of a Contracting Party may, with the agreement of the other Contracting Party involved and subject to the conditions laid down by the latter, be present to obtain in the offices of the requested authority or any other concerned authority in accordance with paragraph 1, information relating to activities that are or may be operations in breach of customs legislation which the applicant authority needs for the purposes of this Protocol.

4. Duly authorised officials of a Contracting Party involved may, with the agreement of the other Contracting Party involved and subject to the conditions laid down by the latter, be present at enquiries carried out in the latter's territory.

Article 8

Form in which information is to be communicated

1. The requested authority shall communicate results of enquiries to the applicant authority in writing together with relevant documents, certified copies or other items.

2. This information may be in computerised form.

3. Original documents shall be transmitted only upon request in cases where certified copies would be insufficient. These originals shall be returned at the earliest opportunity.

Article 9

Exceptions to the obligation to provide assistance

1. Assistance may be refused or may be subject to the satisfaction of certain conditions or requirements, in cases where a Party is of the opinion that assistance under this Protocol would:

(a) be likely to prejudice the sovereignty of Croatia or that of a Member State which has been requested to provide assistance under this Protocol; or

(b) be likely to prejudice public policy, security or other essential interests, in particular in the cases referred to under Article 10(2); or

(c) violate an industrial, commercial or professional secret.

2. Assistance may be postponed by the requested authority on the ground that it will interfere with an ongoing investigation, prosecution or proceeding. In such a case, the requested authority shall consult with the applicant authority to determine if assistance can be given subject to such terms or conditions as the requested authority may require.

3. Where the applicant authority seeks assistance which it would itself be unable to provide if so requested, it shall draw attention to that fact in its request. It shall then be for the requested authority to decide how to respond to such a request.

4. For the cases referred to in paragraphs 1 and 2, the decision of the requested authority and the reasons therefor must be communicated to the applicant authority without delay.

Article 10

Information exchange and confidentiality

1. Any information communicated in whatsoever form pursuant to this Protocol shall be of a confidential or restricted nature, depending on the rules applicable in each of the Contracting Parties. It shall be covered by the obligation of official secrecy and shall enjoy the protection extended to similar information under the relevant laws of the Contracting Party that received it and the corresponding provisions applying to the Community authorities.

2. Personal data may be exchanged only where the Contracting Party which may receive them undertakes to protect such data in at least an equivalent way to the one applicable to that particular case in the Contracting Party that may supply them. To that end, contracting parties shall communicate to each other information on their applicable rules, including, where appropriate, legal provisions in force in the Member States of the Community.

3. The use, in judicial or administrative proceedings instituted in respect of operations in breach of customs legislation, of information obtained under this Protocol, is considered to be for the purposes of this Protocol. Therefore, the Contracting Parties may, in their records of evidence, reports and testimonies and in proceedings and charges brought before the courts, use as evidence information obtained and documents consulted in accordance with the provisions of this Protocol. The competent authority which supplied that information or gave access to those documents shall be notified of such use.

4. Information obtained shall be used solely for the purposes of this Protocol. Where one of the Contracting Parties wishes to use such information for other purposes, it shall obtain the prior written consent of the authority which provided the information. Such use shall then be subject to any restrictions laid down by that authority.

Article 11

Experts and witnesses

An official of a requested authority may be authorised to appear, within the limitations of the authorisation granted, as an expert or witness in judicial or administrative proceedings regarding the matters covered by this Protocol, and produce such objects, documents or certified copies thereof, as may be needed for the proceedings. The request for appearance must indicate specifically before which judicial or administrative authority the official will have to appear, on what matters and by virtue of what title or qualification the official will be questioned.

Article 12

Assistance expenses

The Contracting Parties shall waive all claims on each other for the reimbursement of expenses incurred pursuant to this Protocol, except, as appropriate, for expenses to experts and witnesses, and those to interpreters and translators who are not public service employees.

Article 13

Implementation

1. The implementation of this Protocol shall be entrusted on the one hand to the customs authorities of Croatia and on the other hand to the competent services of the Commission of the European Communities and the customs authorities of the Member States as appropriate. They shall decide on all practical measures and arrangements necessary for its application, taking into consideration the rules in force in particular in the field of data protection. They may recommend to the competent bodies amendments which they consider should be made to this Protocol.

2. The Contracting Parties shall consult each other and subsequently keep each other informed of the detailed rules of implementation which are adopted in accordance with the provisions of this Protocol.

Article 14

Other agreements

1. Taking into account the respective competencies of the European Community and the Member States, the provisions of this Protocol shall:

- not affect the obligations of the Contracting Parties under any other international agreement or convention;

- be deemed complementary to agreements on mutual assistance which have been or may be concluded between individual Member States and Croatia ; and shall

- not affect the Community provisions governing the communication between the competent services of the Commission of the European Communities and the customs authorities of the Member States of any information obtained under this Protocol which could be of interest to the Community.

2. Notwithstanding the provisions of paragraph 1, the provisions of this Protocol shall take precedence over the provisions of any bilateral agreement on mutual assistance which has been or may be concluded between individual Member States and Croatia insofar as the provisions of the latter are incompatible with those of this Protocol.

3. In respect of questions relating to the applicability of this Protocol, the Contracting Parties shall consult each other to resolve the matter in the framework of the Stabilisation and Association Committee set up under Article 114 of the Stabilisation and Association Agreement.

PROTOCOL 6

ON LAND TRANSPORT

Article 1

Aim

The aim of this Protocol is to promote co-operation between the Parties on land transport, and in particular transit traffic, and to ensure for this purpose that transport between and through the territories of the Parties is developed in a co-ordinated manner by means of the complete and interdependent application of all the provisions of this Protocol.

Article 2

Scope

1. Co-operation shall cover land transport, and in particular road, rail and combined transport, and shall include the relevant infrastructure.

2. In this connection, the scope of this Protocol shall cover in particular:

- transport infrastructure in the territory of one or other Party to the extent necessary to achieve the objective of this Protocol,

- market access, on a reciprocal basis, in the field of road transport,

- essential legal and administrative supporting measures including commercial, taxation, social and technical measures,

- co-operation in developing a transport system which meets environmental needs,

- a regular exchange of information on the development of the transport policies of the Parties, with particular regard to transport infrastructure.

3. Waterway transport is governed by the particular provisions of the Declaration in Annex II

Article 3

Definitions

For the purposes of this Protocol, the following definitions shall apply:

a) Community transit traffic: the carriage, by a carrier established in the Community, of goods in transit through Croatian territory en route to or from a Member State of the Community;

b) Croatian transit traffic: the carriage, by a carrier established in Croatia, of goods in transit from Croatia through Community territory and destined for a third country or of goods from a third country destined for Croatia;

c) combined transport: the transport of goods where the lorry, trailer, semi-trailer, with or without tractor unit, swap body or container of 20 feet or more, uses the road on the initial or final leg of the journey and on the other leg, rail or inland waterway or maritime services where this section exceeds 100 kilometres as the crow flies and make the initial or final road transport leg of the journey;

- between the point where the goods are loaded and the nearest suitable rail loading station for the initial leg, and between the nearest suitable rail unloading station and the point where the goods are unloaded for the final leg, or;

- within a radius not exceeding 150 km as the crow flies from the inland waterway port or seaport of loading or unloading

INFRASTRUCTURE

Article 4

General Provision

The Contracting Parties hereby agree to adopt mutually co-ordinated measures to develop a multimodal transport infrastructure network as a vital means of solving the problems affecting the carriage of goods through Croatia in particular on the Pan-European Corridors V, VII, X and the Adriatic/Ionean Pan-European Transport Area connecting to Corridor VIII.

Article 5

Planning

The development of a multimodal regional transport network on the Croatian territory which serves the needs of Croatia and the South-Eastern European region covering the main road and rail routes, inland waterways, inland ports, ports, airports and other relevant modes of the network is of particular interest to the Community and Croatia. This network shall connect to the regional, Trans or Pan-European networks of the neighbouring countries and be interoperable with the Trans-European Transport Network of the Community. The respective projects and priorities will be assessed in accordance with methods used in the Transport Infrastructure Needs Assessment (TINA) taking into account the TINA results in neighbouring countries. The results of this assessment should identify the transport priorities for allocating Croatia's own resources and any Community co-financing to projects on this network.

Article 6

Financial aspects

1. The Community shall contribute financially, under Article 107 of the Agreement, to the necessary infrastructure work referred to in Article 5. This financial contribution may take the form of credit from the European Investment Bank and any other form of financing which can provide further additional resources.

2. In order to speed up the work the Commission will endeavour, as far as possible, to encourage the use of additional resources such as investment by certain Member States on a bilateral basis or from public or private funds.

RAIL AND COMBINED TRANSPORT

Article 7

General provision

The Parties shall adopt the mutually co-ordinated measures necessary for the development and promotion of rail and combined transport as a mean of ensuring that in the future a major proportion of their bilateral and transit transport through Croatia is performed under more environmentally- friendly conditions.

Article 8

Particular aspects relating to infrastructure

As part of the modernisation of the Croatian railways, the necessary steps shall be taken to adapt the system for combined transport, with particular regard to the development or building of terminals, tunnel gauges and capacity, which require substantial investment.

Article 9

Supporting measures

The Parties shall take all the steps necessary to encourage the development of combined transport.

The purpose of such measures shall be:

- to encourage the use of combined transport by users and consignors,

- to make combined transport competitive with road transport, in particular through the financial support of the Community or Croatia in the context of their respective legislations,

- to encourage the use of combined transport over long distances and to promote, in particular the use of swap bodies, containers and unaccompanied transport in general,

- to improve the speed and reliability of combined transport and in particular:

- to increase the frequency of convoys in accordance with the needs of consignors and users,

- to reduce the waiting time at terminals and increase their productivity,

- to remove in an appropriate manner, all obstacles from the approach routes so as to improve access to combined transport,

- to harmonise, where necessary, the weights, dimensions and technical characteristics of specialised equipment, in particular so as to ensure the necessary compatibility of gauges, and to take co-ordinated action to order and to put into service such equipment as is required by the level of traffic,

- and, in general, to take any other appropriate action.

Article 10

The role of the railways

In connection with the respective powers of the States and the railways, the Parties shall, in respect of both passenger and goods transport, recommend that their railways:

- step up co-operation, whether bilateral, multilateral or within international railway organisations, in all fields, with particular regard to the improvement of the quality and the safety of transport services,

- try to establish in common a system of organising the railways so as to encourage consignors to send freight by rail rather than road, in particular for transit purposes, on a basis of fair competition and while leaving the user freedom of choice in this matter,

- to prepare the participation of Croatia within the Trans-European Freight Network as defined in the Community acquis on the development of the railways.

ROAD TRANSPORT

Article 11

General Provisions

1. With regard to mutual access to transport markets, the Parties agree, initially and without prejudice to paragraph 2, to maintain the regime resulting from bilateral agreements or other existing international bilateral instruments concluded between each Member State of the Community and Croatia or, where there are no such agreements or instruments, arising from the de facto situation in 1991.

However, whilst awaiting the conclusion of an agreement between the Community and Croatia on access to the road transport market, as provided for in Article 12, and on road taxation, as provided for in Article 13.2, Croatia shall co-operate with the Member States of the Community to amend these bilateral agreements to adapt them to this Protocol.

2. The Parties hereby agree to grant unrestricted access to Community transit traffic through Croatia and to Croatian transit traffic through the Community with effect from the date of entry into force of this Agreement.

3. By way of derogation from paragraph 2 the following provisions will apply to Croatian transit traffic through Austria:

a) until 31 December 2002 a regime for Croatian transit identical to that applied under the bilateral Agreement between Austria and Croatia, signed on 6 June 1995, will be maintained. No later than 30 June 2002 the Parties will examine the functioning of the regime applied between Austria and Croatia in the light of the principle of non-discrimination which must apply to heavy goods vehicles from the European Community and such vehicles from Croatia in transit through Austria. Appropriate measures will be taken in order to ensure, if necessary, effective non-discrimination;

b) with effect from 1 January 2003 a system of ecopoints similar to that laid down by Article 11 of Protocol No. 9 to the Act of Accession of Austria to the European Union will apply until 31 December 2003. The method of calculation and the detailed rules and procedures for the management and control of the ecopoints will be agreed in good time by means of an exchange of letters between the Contracting Parties and will be in line with the provisions of Articles 11 and 14 of the above-mentioned Protocol No. 9.

4. If, as a result of the rights granted under paragraph 2, transit traffic by Community hauliers increases to such a degree as to cause or threaten to cause serious harm to road infrastructure and/or traffic fluidity on the axes mentioned in Article 5, and under the same circumstances problems arise on Community territory close to the Croatian borders, the matter shall be submitted to the Stabilisation and Association Council in accordance with article 113 of the Agreement. The Parties may propose exceptional temporary, non-discriminatory measures as are necessary to limit or mitigate such harm.

5. If the European Community establishes rules aiming to reduce pollution caused by heavy goods vehicles registered in the European Union equivalent rules shall apply to heavy goods vehicles registered in Croatia that wish to circulate through the Community territory. The Stabilisation and Association Council shall decide on the necessary modalities.

6 The Parties shall refrain from taking any unilateral action that might lead to discrimination between Community and Croatian carriers or vehicles. Each Contracting Party shall take all steps necessary to facilitate road transport to or through the territory of the other Contracting Party.

Article 12

Access to the market

The Parties shall, as a matter of priority, undertake to work together to seek, each of them subject to their internal rules,

- courses of action likely to favour the development of a transport system which meets the needs of the Contracting Parties, and which is compatible, on the one hand, with the completion of the internal Community market and the implementation of the common transport policy and, on the other hand, with Croatia's economic and transport policy,

- a definitive system for regulating future road transport market access between Contracting Parties on the basis of reciprocity.

Article 13

Taxation, tolls and other charges

1. The Parties accept that the taxation of road vehicles, tolls and other charges on either side must be non-discriminatory.

2. The Parties shall enter into negotiations with a view to reaching an agreement on road taxation, as soon as possible, on the basis of the rules adopted by the Community on this matter. The purpose of this Agreement shall be, in particular, to ensure the free flow of trans-frontier traffic, to progressively eliminate differences between the road taxation systems applied by the Parties and to eliminate distortions of competition arising from such differences.

3. Pending the conclusion of the negotiations mentioned in paragraph 2, the Parties will eliminate discrimination between hauliers of the Community or Croatia when levying taxes and charges on the circulation and/or possession of heavy goods vehicles as well as taxes or charges levied on transport operations in the territory of the Parties. Croatia undertakes to notify the Commission of the European Communities, if so requested, the amount of taxes, tolls and charges which it applies, as well as the method of calculating them.

4. Until the conclusion of the agreements mentioned in paragraph 2 and in Article 12 any change proposed after the entry into force of this Agreement to fiscal charges, tolls or other charges, including the systems for their collection which may be applied to Community traffic in transit through Croatia will be subject to a prior consultation procedure.

Article 14

Weights and dimensions

1. Croatia accepts that road vehicles complying with Community standards on weights and dimensions may circulate freely and without hindrance in this respect on the routes covered by Article 5. During six months after the entry into force of this Agreement, road vehicles which do not comply with existing Croatian standards may be subject to a special non-discriminatory charge which reflects the damage caused by additional axle weight.

2. Croatia will endeavour to harmonise its existing regulations and standards for road construction with the legislation prevailing in the Community by the end of the fifth year after the entry into force of this Agreement and will make major efforts for improvement of the existing routes covered by Article 5 to those new regulations and standards within the proposed time, in accordance with its financial possibilities.

Article 15

Environment

1. In order to protect environment, the Parties shall endeavour to introduce standards on gaseous and particulate emissions and noise levels for heavy goods vehicles, which ensure a high level of protection.

2. In order to provide the industry with clear information and to encourage co-ordinated research, programming and production, exceptional national standards in this field shall be avoided.

Vehicles which comply with standards laid down by international agreements also relating to environment may operate without further restrictions in the territory of the Parties.

3. For the purpose of introducing new standards, the Parties shall work together to achieve the above-mentioned objectives.

Article 16

Social aspects

1. Croatia shall harmonise its legislation on the training of road haulage personnel, particularly with respect to the carriage of dangerous goods, to the EC standards.

2. Croatia, as a contracting party of the European Agreement on international road transport crews (ERTA), and the Community will co-ordinate to the maximum extent possible their policies concerning driving time, interruptions and rest periods for drivers and crew composition, in respect of the future development of the social legislation in this area.

3. The Parties shall co-operate with regard to implementation and enforcement of the social legislation in the field of road transport.

4. The Parties shall ensure the equivalence of their respective laws on the admission to the occupation of road haulage operator, with a view to their mutual recognition.

Article 17

Provisions relating to traffic

1. The Parties shall pool their experience and endeavour to harmonise their legislation so as to improve the flow of traffic during peak periods (weekends, public holidays, the tourist season).

2. In general, the Parties shall encourage the introduction, development and co-ordination of a road traffic information system.

3. They shall endeavour to harmonise their legislation on the carriage of perishable goods, live animals and dangerous substances.

4. The Parties shall also endeavour to harmonise the technical assistance to be provided to drivers, the dissemination of essential information on traffic and other matters of concern to tourists, and emergency services including ambulance services.

SIMPLIFICATION OF FORMALITIES

Article 18

Simplification of formalities

1. The Parties agree to simplify the flow of goods by rail and road, whether bilateral or in transit.

2. The Parties agree to begin negotiations with a view to concluding an agreement on the facilitation of controls and formalities relating to the carriage of goods.

3. The Parties agree, to the extent necessary, to take joint action on, and to encourage, the adoption of further simplification measures.

FINAL PROVISIONS

Article 19

Widening of the scope

If one of the Parties concludes, on the basis of experience in the application of this Protocol, that other measures which do not fall within the scope of the Protocol are in the interest of a co-ordinated European transport policy and, in particular, may help to solve the problem of transit traffic, it shall make suggestions in this respect to the other Party.

Article 20

Implementation

1. Co-operation between the Parties shall be carried out within the framework of a special Sub-committee to be created in accordance with article 115 of the Agreement.

2. This Sub-committee in particular:

a) shall draw up plans for co-operation on rail and combined transport, transport research and the environment;

b) shall analyse the application of the decisions contained in the present Protocol and shall recommend to the Stabilisation and Association Committee appropriate solutions for any possible problems which might arise;

c) shall, two years after the entry into force of the Agreement, undertake an assessment of the situation as regards infrastructure improvement and the implications of free transit;

d) shall co-ordinate the monitoring, forecasting and other statistical work relating to international transport and in particular transit traffic.

Article 21

Annexes

The Annexes shall be an integral part of this Protocol.

Annex I

JOINT DECLARATION

1. The Community and Croatia take note that the levels of gaseous emissions and noise currently accepted in the Community for the purposes of heavy goods vehicle type approval from 01.01.2001 [13]are as follows:

[13] Directive.1999/96/EC of 13 December 1999, OJ L 44/1,16.2.2000 p. 1.

Limit values measured on the European Steady Cycle (ESC) and the European Load Response (ELR) test:

&gt;TABLE POSITION&gt;

(a) For engines having a swept volume of less than 0,75 dm³ per cylinder and a rated power speed of more than 3000 min-1

Limit values measured on the European Transient Cycle (ETC):

&gt;TABLE POSITION&gt;

(a) For engines having a swept volume of less than 0,75 dm³ per cylinder and a rated power speed of more than 3000 min-1.

(b) For natural gas engines only.

(c) Not applicable for gas fuelled engines.

2. In the future, the Community and Croatia shall endeavour to reduce the emissions of motor vehicles through the use of state of the art vehicle emission control technology coupled with improved quality of motor fuel.

Annex II

Declaration concerning Article 2

Croatia expressed its interest in opening, as soon as possible, negotiations on future co-operation in the field of waterways transport.

The Community took careful note of the interest expressed by Croatia.

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