 
 RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/HRV/6 
27 August 1998 
 (98-3322) 
Working Party on the  
Accession of Croatia Original:   English 
 
 
 
ACCESSION OF CROATIA 
 
Elements of a draft report  
 
INTRODUCTION  1. The Government of Croatia applied for acc ession to the General Agreement on Tariffs and 
Trade (GATT 1947) in September 1993.  At its meeting on 27 October 1993, the GATT 1947 Council 
of Representatives established a Working Party to ex amine the application of the Government of Croatia 
to accede to the General Agreement under Articl e XXXIII of the General Agreement.  Following the 
conclusion of the Uruguay Round, Croatia requeste d accession to the World Trade Organization (WTO) 
under Article XII of the Marrakesh  Agreement establishing the Worl d Trade Organization.  Having 
regard to the decision adopted by the WTO General Council on 31 January 1995, the existing 
GATT 1947 Accession Working Party wa s transformed into a WTO Accession Working Party.  The 
terms of reference and the membership of th e Working Party are reproduced in document 
WT/ACC/HRV/8/Rev.3.  
2. The Working Party met on 1 April 1996; 23-24 January 1997;  21 January 1998 and  
...........................  under the Chairmanship of Ms. A.-M. Plate (the Netherlands).   DOCUMENTATION PROVIDED 
 
3. The Working Party had before it, to serve as  a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Croatia (L/7466) and the questions submitted by Members on the foreign trade 
regime of Croatia, together with the replies th ereto (WT/ACC/HRV/ 3 and Corr.1, WT /ACC/HRV/4 and 
Addenda 1 and 2, WT/ACC/HRV/7 and Add.1, WT/ACC/HRV/11 and Add. 1, WT/ACC/HRV/27 and 
Addendum 1, WT/ACC/HRV/30, WT/A CC/HRV/39 and Addenda 1 and 2, …… ), and other 
information provided by the Croatian authorities  (WT/ACC/HRV/5 and Corr.1, WT/ACC/HRV/6 and 
Rev.1 and Corr.1, WT/ACC/HRV/9 and Corr.1, WT/ACC/HRV/12 and Corr.1, WT/ACC/HRV/13, 
WT/ACC/HRV/14, WT/ACC/HRV/15, WT/ACC /HRV/16 and Rev.1,  WT/ACC/HRV/17, WT/ACC/SPEC/HRV/6 
Page 2  
 
 WT/ACC/HRV/18, WT/ACC/HRV/19, WT/ACC/HRV/20, WT/ACC/HRV/21, WT/ACC/HRV/22, 
WT/ACC/HRV/23, WT/ACC/HRV/24, WT/ACC /HRV/25, WT/ACC/HRV/37 and Rev.1, 
WT/ACC/HRV/40, WT/ACC/HRV/43, …… ), including the legislative texts and other documentation 
listed in Annex I. 
 INTRODUCTORY STATEMENTS  4. In his introductory statement, the representative of Croatia stressed that accession to the World 
Trade Organization was among the main priorities of his Government.  Croatia was pursuing a program  
of thorough economic adjustment a nd reform, transforming its economy into one based fully on market 
principles.  The efforts of the Government were underpinned by credits from the IMF, the World Bank 
and the European Bank for Reconstruction and Deve lopment.  Croatia was strengthening institutional 
relations with the European Union and free-trade ti es with countries in cent ral and eastern Europe.  
 5. The near-term goals of his G overnment were to ac celerate economic grow th, privatization, 
public enterprise restructuring a nd the rehabilitation of banks;  co mprehensive reconstruction of war-
torn areas;  fight unemployment while maintaining lo w inflation and a stable exchange rate;  and to 
continue to develop the legal and institutional fram ework.  An internationally compatible market 
framework had been established with the enactment of the Company Law and the Law on Trade, for the 
most part adjusted in accordance with the principles of the GATT and resulting in substantial liberalization of foreign trade.  Croatia had also  introduced a new Customs Tariff, incorporating the 
1996 amendments to the International Convention on  the Harmonized Commodity Description and the 
Recommendation of the World Customs Organization Regarding Ozone Layer De pleters and the Draft 
Recommendation on Drugs.  Some financial incentives  and subsidies were provided to agriculture in 
accordance with the Law on Financial Incentives an d Subsidies in Agriculture and Fisheries (and its 
amendments).  The Government intended to maintain  guaranteed prices for a small group of agricultural 
products, while a system of variable levies would be abolished.  The representative of Croatia assured 
members of the Working Party that Croatia would take  all necessary steps to continue to improve its 
legal and institutional framework, so that the acces sion process could be accomplished as soon as 
reasonably possible.   
 
6. In their opening remarks many members of  the Working Party welcomed the request from 
Croatia to accede to the WTO.  Membership in the WT O would assist Croatia in its efforts to repair the 
damage of war and underpin its continuous and syst ematic transformation towards a market economy.  
Several members declared their interest in working co nstructively together with Croatia in establishing  WT/ACC/SPEC/HRV/6 
 Page 3 
 
 
 its terms of accession and ensuring that the mandate of the Wo rking Party be concluded in a timely 
manner. 
 
7. The Working Party then proceeded to review th e economic policies and fo reign trade regime of 
Croatia and the possible terms of a Draft Protocol of Accession to th e WTO.  The views expressed by 
members of the Working Party are summarized below in paragraphs 8 to .... 
 
ECONOMIC POLICIES Monetary and Fiscal Policy
 
 8. Some members of the Working Party requested information on taxation policies in Croatia, and 
confirmation that the tax system di d not differentiate betw een foreign and domestic ownership.  Noting 
certain problems regarding the collection of taxes, some members asked Croatia to elaborate on the informal sector of the economy and meas ures taken to reduce tax evasion.  
 
9. The representative of Croatia provided an up-date d description of the internal taxation regime in 
July 1996 (document WT/ACC/HRV/20).  The main elemen ts of the tax system were the Law on Profit 
Tax, the Law on Income Tax and the Law on Value Added Tax, replacing th e Law on the turnover tax 
of products and services on 1 January 1998.  Reve nues from the profit tax and the income tax were 
divided between the State, municipa lities, townships and counties in  fixed percentages in accordance 
with Article 45 of the Law on Financing Local Self -Government and Local Government.  In addition, 
local self-government units and government units could also levy some local taxe s in order to fill their 
budgets.  
10. The representative of Croatia said that the size of the informal economy was unknown, but 
studies based on employment data s uggested that the informal sector might add some 16 to 21 per cent 
to the official gross dome stic product.  Sectors with informal economic activity of some significance 
were trading, catering, construction, domestic appl iance and car repair, commercial and residential 
property rental, business services and household pe rsonal services, while the processing industry and 
agriculture appeared to be less affected.  Steps taken to contain the informal sector included the development of an effective tax system, lower taxes and improved la bour relations within a stronger 
regulatory framework and more effe ctive labour inspection.  The fina ncial police was al so stepping up 
operations to enforce the tax laws. 
 WT/ACC/SPEC/HRV/6 
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 Foreign Exchange and Payments
 
 
11. The representative of Croatia noted that the le gal basis for Croatia's foreign exchange regime 
was the Law on the Foundations on the Foreign Exch ange System, effective since 19 October 1993.  
The Law regulated the foreign exchange market, in which all purchase and sale of foreign exchange took place.  Croatia had opted for a fl oating exchange rate for its national currency - the Kuna - to enable 
the economy to adjust to external shocks.  The National Bank of Croatia was authorized to intervene in 
the foreign currency market to maintain a competitive exchange rate.  Exchange rates were published daily by authorized banks and the National Bank of Croatia.  12. A member of the Working Party asked whethe r Croatia differentiated between exporters and 
other firms regarding the availability of foreign exch ange or the rate of exchange and requested further 
information on Croatia's relationship with the IMF, in particular whether an y reservations had been 
made under Article XIV (Transitional Arrangements).  The representativ e of Croatia said that Croatia 
did not differentiate betwee n exporters and other firms in currency exchange rates or in the availability 
of foreign exchange.  Croatia had become member of the IMF in December 1992 following the model 
of partial succession.  As a memb er of the IMF Croatia maintained no reservation under Article XIV.  
Croatia had accepted the obligations of Article VIII, Sections 2, 3 and 4 of the IMF Articles of Agreement with effect from 29 Ma y 1995.  Thus, Croatia did not main tain any restriction on payments 
and transfers for current international transactions. 
 13. A member of the Working Party inquired a bout the Law on Credit Relations with Foreign 
Countries.  The representative of Croatia said th at the Law regulated bo rrowing from international 
financial institutions and lending or borrowing arrangements with fo reign partners by authorized banks, 
companies or other legal entities, and guarantees issued for the account of domestic and foreign entities.  
A copy of the Law was provided to the Working Party.  Resident juridical persons, including commercial banks, were allowed to borrow abroad, but were required to register loans, including 
commercial credits, with the National Bank of Croa tia.  Resident legal or natural persons could only 
extend credits to non-residents from profits or cred its obtained abroad.  Natural persons could borrow 
from non-residents in domestic or fo reign currency.  On the issue of assets and liabilities of former 
Yugoslavia, the representative of Cr oatia said that negotiations were c ontinuing.  He added that Croatia 
had accepted calculations of th e International Monetary Fund and had assumed 28.49 per cent of the 
non-allocated debt of former Yugoslavia. 
  WT/ACC/SPEC/HRV/6 
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 Investment Regime  
 
14. The representative of Croatia said that fore ign investment was regulated under the Company 
Law, entering into force on 1 January 1995.  The Law defined a foreign investor as any foreign national 
or legal person with a registered seat outside th e Republic of Croatia.  The new legal regime had 
nullified a number of restrictions on foreign investment maintained unde r previous legislation (the Law 
on Foreign Investments).  No particular sector was cl osed to foreign investment.  However, investments 
in the military industry and telecomm unications were subject to a spec ial procedure.  According to the 
Law on Telecommunications, foreign i nvestment in radio and televisi on concessions was limited to 
25 per cent of the capital of the co ncessionaire.  Inward portfolio inve stment was not re stricted, except 
for central bank short-term securities in the primary market 
 
15. The representative of Croatia noted that fore ign direct investment by non-residents could take 
the form of joint venture or full ownership.  Regi stration with the commercial  courts was required.  
National treatment applied to foreign investment in principle, on condition of reciprocity.  Parliament 
was currently examining amendments to the Co mpany Law which would abolish the condition of 
reciprocity, thus providing full nati onal treatment in respect of estab lishment of commercial presence.  
These changes were expected to ente r into force in early Autumn 1998. 
 
16. The representative of Croatia said that Croati an residents were require d to report investments 
abroad to the Ministry of Economy ex post  for statistical purposes.  Acquisition of real estate in Croatia 
by non-residents was granted on the basis of reciproc ity.  However, foreign exchange restrictions in 
practice prevented Croatian  residents from purchasing real estate abroad.   
 
State Ownership and Privatization  
 17. Some members of the Working Party asked Croa tia to provide information on its privatization 
programme and outline future plans in this area, not ing that the present Law on Privatization did not 
concern public enterprises,  banks, insurance companies, cooperativ es, marinas, hospitals and schools.  
Asked about the conditions for foreig ners to participate in privatiza tion tenders, the representative of 
Croatia said that the Company Law provided for national treatment of foreign investment, including participation in privatization.  
18. The representative of Croatia said that priv atization involved the transformation of former 
"socially-owned" enterprises into joint-stock or limited liability companies with defined ownership WT/ACC/SPEC/HRV/6 
Page 6  
 
 structures.  Following independence, ten large infr astructure and utilities companies had come under 
direct State ownership as "public enterprises" while the remaining socially-owned enterprises were to be 
privatized in a two-stage process.  These enterpri ses submitted requests for commercialization to the 
Croatian Privatization Fund and could request "a utonomous transformation", i.e. propose their own 
privatization plans, until 30 June 1992.  First-st age privatization was organized by the Croatian 
Privatization Fund, seeking wide participation by  employees and the popula tion at large by offering 
preferential rights for shar e subscription at substantia l discount, and payment by instalments.  Shares in 
enterprises not privatized during the first stage were subsequently transferred to the Croatian Pension Funds (one third) and the Croatian Pr ivatization Fund (two thirds).  Unde r the responsibility of the latter, 
shareholdings had been reduced by various methods, including auctions at the Zagreb Stock Exchange, 
direct trade deals, tenders open to foreign investors, as well as free distribution of shares to war veterans, 
widows and their families. Shares in some specific enterprises had been earmarked to be sold against 
frozen foreign exchange deposits (FFED).  Croatian citizens had participated actively in the privatization;  some 600,000 small investors had acquired shares in a total of more than 2,500 
enterprises.  The Government also encouraged th e establishment of Privat ization Investment Funds 
(PIF's).  These were specialized funds collecting vouchers and coupons in exchange for shares in 
companies put up for mass privatization.  Contrary to  other investment funds, the PIF's were not allowed 
to exchange shares against frozen foreign exchange deposits.  
19. The second phase of the privatization proc ess would be implemented through mass voucher 
privatization.  This privatization woul d, in effect, be a distribution of shares not sold in the first phase of 
privatization.  Vouchers would be distributed to i ndividuals affected by the hostilities such as injured 
servicemen, war widows and their fa milies, and other displaced persons and refugees.  The shares to be 
represented by vouchers were at present held in the portfolio of  the CPF;  shares held by the State 
pension funds would not be included in the process.  In total, more than 500 companies would have their 
shares sold through voucher privatization.  The firs t round of vouchers were distributed in June 1998, 
and the process was expected to be concluded befo re the end of 1998, with the level of privatized 
companies reaching 75 to 80 per cent (excluding pub lic companies).  The representative of Croatia 
provided information on the privatization process in document WT/ACC/HRV/40. 
 20. The representative of Croatia added that the Law on Transformation and Privatization of Socially Owned Enterprises had also applied to ag riculture.  Former socially-owned farms which had 
not filed requests for "autonomous transformation" had been transferre d to the Croatian Privatization 
Fund.  These farms were currently organized as joint-stock or limited liability companies and managed 
by their respective Management Boards.  Some 180 cooperative enterprises would also be privatized  WT/ACC/SPEC/HRV/6 
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 under the Law on Farm Cooperatives.  In some cases agricultural enterprises had been divided into 
smaller independent uni ts.  All agricultural trading and proces sing enterprises had been privatized.  
Croatia intended to privatize the entire food procurement and processing system. 
 21. Sectors not covered under the Law on Privatizati on could be privatized under other provisions.  
Shares in banks were sold by their founding institutio ns or, in case of financ ially troubled banks, with 
the assistance of the Agency for Bank Rehabili tation.  The Law on Sea Ports provided for the 
privatization of port services and the award of conces sions;  the actual port wa s regulated by the port 
administration.  Medical services and other activities w ithin hospitals and clinics, but not the property or 
infrastructure, could be privatized in accordance with  the Statute of Conditions for the Lease of Medical 
Facilities for Primary Medical Care and Hospitals.  P ublic educational facilities would be privatized in 
the near future.  The Law on Privatization included a provision on the privatization of public enterprises 
(Article 13, Paragra ph 13).  The Ministry of Priv atization and Management of  State Assets would draft 
proposals for decision by the Government.  Privatiza tion of the most significant companies required 
approval by Parliament, and privatization would be pursued individually for each company.  Decisions 
had been taken to begin, in the foreseeable future , privatization of Croatian Railways (HZ), Hrvatske 
Sume (Croatian Forests), the Official Gazette, Croatian Petroleum Company (INA), Croatian Radio and Television Broadcasting (HRT), Croatian Electricity Company (HEP), Croatian Post And Telecommunications (HPT), the Coastal Shipping Company and Plovput (a lighthouse company). 
 
22. The representative of Croatia said that Cr oatia had also drafted a Law on Compensation for 
Expropriated Assets.  Th e law foresaw the restitution of assets e ither in kind, through shares reserved in 
the Croatian Privatization Fund or by paym ent from the Croatian Compensation Fund.  
 
Pricing Policies
 
 23. The representative of Croatia said that price controls had been liberalized in recent years.  
Existing controls were applied in accordance with the Law on Exceptiona l Measures of Price Control.  
Direct price controls could be prescribed to preven t negative effects of change s in some prices or to 
prevent monopoly pricing (Article 4).  This provis ion underlined the exceptional character of direct 
price controls, which could only be implemented for a limited period of time and only if the negative 
effects could not be eliminated by  other economic policy measures. 
 
24. The Government could implement direct pri ce controls either by fixing maximum prices;  
ordering price reductions to a certain level;  or by requiring economic agents to report price changes in WT/ACC/SPEC/HRV/6 
Page 8  
 
 advance.  Government Regulations determined the g oods and services subject to these measures.  At 
present, the only direct price controls in force we re obligatory prior reporting of price changes for milk 
for daily consumption;  fertilizers;  wheat flour;  bread type 850;  petroleum products;  natural gas;  
electric energy;  radio and television subscriptions;  transportation of passengers  and freight by local rail 
or maritime line traffic;  standa rd letters and postcards;  telephone impulse and telephone subscription;  
road, bridge and tunnel tolls;  offi cial forms;  roundwood logs; cubic w ood;  and the services of loading 
and transportation of wood sortings.  [The Govern ment Decisions and Orders  of the Ministry of 
Economy identifying the goods and services subject to  advance notice of price changes were provided to 
the Working Party.]  The Ministry of Economy coul d object to the new prices within 15 days from the 
date the prices were reported, and request a company to reconsider the proposed prices.  The Law provided for penalties amounting to HRK 5,000-20, 000 (US$800-3,000) for companies changing prices 
against the objections of the Ministry, and the Govern ment could order the prices lowered to the original 
level.  A company objecting to such administrati ve action could institute proceedings and request 
compensation for the damage incurred.  All regulatio ns regarding price contro l measures were published 
in the "Official Gazette" of  the Republic of Croatia. 
 
25. Local administrative bodies we re responsible for direct and in direct price controls of public 
utilities, i.e. central heating, wate r supply, sewage and other sanitary services, distribution of gas, public 
transport, etc.  However, the Gove rnment could prescribe such measur es to prevent market disturbance 
or monopoly behaviour if local admini strative bodies did not take action. 
 Competition Policy
 
 26. The representative of Croatia said that the Law on the Protection of Market Competition had 
been adopted by Parliament on 27 June 1995.  Certai n practices, including price fixing, market sharing 
and tying-in arrangements, were ge nerally or specifically prohibited, but the rule of reason applied and 
group exemptions could be granted, for example for contracts related to spec ialization, exclusive or 
selective distribution, exclusive purchasing, franchising and resear ch and development.  The Law 
applied to all firms operating in Cr oatia regardless of the form of incorporation or ownership.  An 
indicative list of State-owned or public enterprises which could qualify  for exemption was found in an 
Annex to the Law on Public Purchasing.  Howeve r, until now no entities or legal persons owned, 
managed or under the authority of the State had been specifically or explicitly exempted from the Law on the Protection of Market Competiti on.  In response to specific que stions on the regulation of export 
cartels, he confirmed that Article 4 (2) of the Law limited its scope to anti-competitive practices 
affecting the home market provided internationa l agreements signed by Cr oatia did not stipulate  WT/ACC/SPEC/HRV/6 
 Page 9 
 
 
 otherwise.  Croatia had established a Competition Protection Agen cy to enforce legislation.  Cases 
would be decided by its Council.  
 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  27. The representative of Croatia said that the ce ntral Government was res ponsible for a number of 
functions including international re lations, economic policy and customs matters.  Each Ministry was 
responsible for proposing new or am ended legislation within its ar ea of competence.  Following 
approval by the Government draft legislation would be forwarded to Parliame nt for adoption.  Most 
international agreements were subjec t to ratification by Parliament.  Cr oatia's Protocol of Accession to 
the WTO would be subject to such ratification. 
 
28. The representative of Croatia said that Croatia had established a system of local self-government and administration based on the Eur opean Charter on Local Self-government.  Within 
this system, Croatia was divided into 21 counties (i ncluding the City of Zagreb), subdivided into 421 
municipalities, 50 townships and two special self-governing di stricts.  The activities  of local government 
units were financed in part from local dues and fe es and income from own assets, in part from fixed 
percentage shares of revenue from the income tax, th e profit tax, a tax on real estate transactions and a 
tax on gambling.  Property taxes collected by the c ounties included taxes on motor vehicles and vessels, 
raised in fixed kuna amounts rangi ng from the equivalent of DM 30 to 200 [per year?] for cars, DM 20 
to 100 for motorcycles, and DM 40 to 550 for vessels.  29. Some Members noted that loca l authorities could levy taxes on  certain goods and services and 
asked what control the central government could exerci se to ensure that the taxation practices of local 
authorities would be consis tent with WTO obligations.  The repres entative of Croatia replied that only 
the central authorities (the Government and Parliame nt) could propose and adopt legislation of any kind, 
including in the area of taxation.  Thus, as local auth orities could only collect taxes established by law, 
their practices would be in compliance with WTO obligations. 
 
30. Decisions on concessional rights were subject to  shared responsibility be tween central and local 
governments.  Concessions were re gulated by the Law on Concessions, unless special st atutes provided 
otherwise, and could be granted for up to 99 years to  a domestic or foreign person.  Decisions on the 
granting of concessions were taken by the House of Representatives (Parliament) on the proposal of the 
Government, and upon the opinion of the local admi nistrative body where the concession would be 
exploited.  Parliament could dele gate the authority to grant concessions to the Government.  The WT/ACC/SPEC/HRV/6 
Page 10  
 
 decision to grant a concession was required to be based on public bidding or so liciting of tenders to 
select the successful candidate.  Following the deci sion to grant a concession by Parliament or the 
Government, the executive branch of the of the administrative body conclude d a contract with the 
concessionaire, regulating the condi tions under which a concession coul d be exploited or terminated.  
Special laws could provide different conditions, as an ex emption to this general law, to obtain or exploit 
a concession.  For example, local road concessions were granted by local authorities, and the Law on 
Sea Ports provided for concessions to be granted by the port authority. 
 POLICIES AFFECTING TRADE IN GOODS  Trading Rights
 
 
31. The representative of Croatia said that Cr oatia had applied temporarily the Law on Foreign 
Trade Operations of the former  Yugoslavia since October 1991.  The Law laid down a number of 
conditions regarding registration of companies, repo rting requirements, restrictions on the right to 
engage in foreign trade, and rules for special trade operations.  The Law on Foreign Trade Operations 
had been superseded by the Company Law, ente ring into force on 1 January 1995, and the Law on 
Trade, in effect since February 1996.  The Compan y Law contained exhaustive and precise provisions 
concerning the establishment, incorporation and regi stration of stock corporations, limited liability 
companies, general or limited partnerships, and so le proprietorships.  The restrictions or special 
conditions governing foreign trade operations under  the former Law on Foreign Trade Operations had 
been abolished with the new Law on Trade and the Company Law;  for example, companies engaging in foreign trade were no longer required to register se parately with the Commerc ial Court, and companies 
were now free to re-export, import or invest abro ad without approval of the Ministry of Economy. 
 
32. The representative of Croatia added that alt hough the former Law on Fo reign Trade Operations 
had limited or conditioned the freedo m of trade, foreign trade had never been subject to State monopoly.  
The State did not restrict the right of persons or en tities to import or export under present legislation.  
The registration criteria to be met by domestic or foreign enterprises and individuals wishing to engage 
in foreign trade were set out in Article 4 of the Law on Trade, providing for free trade and equal market 
conditions.  33. Croatia maintained no registry of authorized im porters of goods subject to licensing.  In general, 
all companies incorporated for trad e activities or activities using licens ed goods were eligible to apply 
for import licences.  First-time applicants were requi red to submit additional documentation such as the  WT/ACC/SPEC/HRV/6 
 Page 11 
 
 
 registration with the Commercial Court.  Importers of  arms needed a prior licence to sell arms from the 
Ministry of Internal Affairs. 
 
[Market Access Negotiations  
 34. In a communication dated 24 July 1995 (document WT/ACC/HRV/3/Add.1), Croatia 
announced its readiness to commence  bilateral negotiations for its concessions under the GATT 1994.  
Croatia wished to commit itself to  tariff ceilings on a selective product-by-product basis according to 
Article XXVIIIbis, paragraph 2(a) of the GATT 1994.  Moreover, Croatia decl ared itself a "developing 
country" and as such entrusted WT O Members to take this into consideration when making their 
requests for concessions.  The re asons for requesting developing country treatment were further 
explained in a separate submission (document WT /ACC/HRV/4, Appendix 1).  An initial offer on 
market access for trade in industria l goods was submitted in April 1997, and an initial offer on trade in 
agriculture in May 1997.  [Members were no tified in documents WT /ACC/SPEC/HRV/3 dated 
23 April 1997 and document WT/ACC/SPEC/HRV/2 of 14 May 1997.  A revised offer onmarket access 
for trade in industrial products wa s submitted in March 1998 (document 
WT/ACC/SPEC/HRV/3/Rev.1).  The offers are available on diskette in the Secretariat.]  A. Import Regulation
 
 
Customs Tariff  35. The representative of Croatia said that Croatia had been an active member of the World Customs Organization since gaining full membersh ip on 1 July 1993.  Croatia had joined the 
International Convention on the Harmonized Co mmodity Description and Coding System on 
26 September 1994.  The Customs Law, the Customs Tariff Law and the Law on Customs 
Administration constituted the legal framework for the customs regime of Croatia.  The right of appeal 
against decisions of Customs was ensured in Articl es 242 to 244 of the Customs Law, and its Articles 
249 to 253 regulated the subsequent settlement of accounts, payment a nd refund of customs duties.  The 
Customs Law had been applied with minor changes si nce 1991.  Some amendments were in preparation 
to adjust to the WTO provisions on customs valuation and customs procedures to the Community Customs Code.  WT/ACC/SPEC/HRV/6 
Page 12  
 
 Ordinary Customs Duties 
 
36. The representative of Croatia said that a ne w Customs Tariff Law, based on the 1996 version of 
the Harmonized System, had entered into force on 1 Ju ly 1996.  The new customs tariff was provided to 
the Working Party in diskette form.  He added that tariff rates were increased on some agricultural and 
food products, reflecting th e abolition of import quotas.  Comp ound rates (ad valorem and specific 
element) had been established for some agricultural products.  Maximum levels fo r the specific elements 
and the corresponding seasons had been  established for fresh fruit and vegetables;  the upper limits were 
published in Annex A of the Customs Tariff.  No fu rther seasonal duties or charges were planned.  
Goods valued at less than US$500 intended for hous ehold use and carried by natural persons entering 
Croatia were assessed a unified customs duty of 8 per cent. 
 
Other Duties and Charges Levied on Imports but not on Domestic Production 
 37. The representative of Croatia said that all du ties and charges other than ordinary customs duties 
had been abolished with the introduction of the new cu stoms tariff on 1 July 1996, notably a 10 per cent 
charge on imports and a 1 per cent customs registratio n fee.  Various agricultural and food products had 
been subject to import levi es (a list was provided in document WT/ACC/HRV/7/Add.1. 
 
Tariff Rate Quotas, Tariff Exemptions 
 38. The representative of Croatia said that exemptions from payment of customs duty could be granted in accordance with the pr ovisions and procedures of the Cu stoms Law.  Article 18 of the 
Customs Law established regulations for goods not subject to customs payment such as goods in transit, 
international tender documents and other printed or recorded materi al related to culture, science, 
education, etc.  Further exemptions were outlined in Articles 24 to 33 for items imported by foreign 
diplomatic and consular offices in Croatia in accorda nce with their needs and requirements for official 
purposes;  articles for personal us e when travelling abroad;  goods rece ived for free from abroad by legal 
or natural persons;  goods destined for disaster reli ef and humanitarian purpos es;  and importation of 
industrial and other equipment related to foreign inve stment (Article 29).  Exemptions could also be 
granted under Article 54 - imports on the basis of tariff quotas - and Article 59 (commitments under 
international agreements).  He adde d that the tariff exemptions were non-discriminatory and of a general 
nature. 
  WT/ACC/SPEC/HRV/6 
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 Fees and Charges for Services Rendered 
 
39. The representative of Croatia said that Croatia charged a stamp tax at a flat rate of HRK 60 per 
customs declaration.  In addition, a 1 per cent ad valorem  fee had been levied on the basis of Article 35 
of the Customs Law.  The fee represented the cost of record-keeping at customs.  The ad valorem  
customs registration fee had been abolished and in corporated into the new Customs Tariff Law on 1 
July 1996. 
 40. In reply to a specific question on charges on imported cement, he noted that shipments were 
subject to certain administrative charges set in fixe d amounts.  A shipment of  cement would be subject 
to a stamp tax (HRK 60) as well as a quality cont rol tax (HRK 170) and an additional weight-based 
quality control charge for physical examination of the shipment.  The quality control charges applied 
also to domestic products.  Application of Internal Taxes to Imports 
 
41. The representative of Croatia said that certain  products - coffee, non-alc oholic beverages, beer, 
alcohol, tobacco products, petroleum products and ne w imported cars - were subject to excise tax
 in 
accordance with the provisions of  the Law on Special Taxes on Produc ts.  He acknowledged that excise 
taxes on beer, non-alcoholic and alc oholic beverages, tobacco and toba cco products had differentiated 
between imported and dom estically-produced goods until January 1998.   However, the majority of the 
excise taxes, except those on alcohol and tobacc o products, had been brought into conformity with 
Article III of the GATT by June 1998.  The products concerned and the respective  tax rates [at end June 
1998] are enumerated in Table 1. 
 
Table 1:  Excise Taxes in Cr oatia (rates on 30 June 1998)  
 
Product description Tax rate (in kuna) 
Coffee, per kg:  
 Non-roasted coffee 3.60 
 Roasted coffee 9.00 
 Coffee husks and skins 12.00 
 Coffee substitutes c ontaining coffee 15.00 
Non-alcoholic beverages, per hl:  
 Domestic 40.00 
 Imported 40.00 
Beer (alcoholic), per hl:  
 Domestic 80.00 
 Imported 80.00 WT/ACC/SPEC/HRV/6 
Page 14  
 
 Product description Tax rate (in kuna) 
Beer (non-alcohol – max 0,5 per cent vol), per hl:  
 Domestic 40.00 
 Imported 40.00 
Alcohol and alcohol ic beverages:  
 Domestic, per litre absolute alcohol 30.00 
 Imported,  " " " 60.00 
Tobacco and tobacco products:  
 Domestic tobacco, per 1,000 grams 28.00 
 Imported tobacco,    "   "  " 56.00 
 Imported cigarettes, all kinds 8.50 
 Cigarettes sold in specialized warehouses and duty-free zones 7.50 
 Domestically-produced cigarettes containing at least 60 per cent 
 domestic tobacco  - soft pack 
 - hard pack   
 
3.50 
4.20 
 Cigarettes containing at least 60 pe r cent domestic tobacco produced in 
the Republic of Croatia on the basis of production licences  
5.00 
 Domestic cigarettes cont aining more than 60 per cent domestic tobacco 5.00 
 Domestic cigarettes c ontaining less than 60 per cent domestic tobacco 7.50 
 Cigars, domestic and imported, per piece 0.60 
 Cigarillos, domestic an d imported, 20 pieces 4.00 
Petroleum products (both domestic and imported):  
 Petrol, types such as MB-98, MB-86  1.90 
 Petrol, types such as BMB-98, BMB-95,  BMB-91 1.60 
 Diesel, such as D-i, D-2, D-3 1.40 
 Heating oil - extra light  and special light 0.30 
Automobiles:    
 Power 55-75 kW 
 "  Power 75-90 kW  " 
 Power 90-110 kW 
 "  Power more than 110kW  " - 
- - - 
- 
- - - new 
used new used 
new 
used new  used 3,000.00 
2,000.00 7,000.00 5,000.00 
15,000.00 
11,000.00 30,000.00 22,000.00 
 
42. He added that Croatia' s excise tax legislation would be brought  into full conformity with Article 
III of the GATT before the end of 1998, at the la test, establishing equal taxes for imported and 
domestically-produced goods.  To this end, cha nges in the Law on Special Taxes on Products had 
passed the first reading in Parliament.  A draft propo sal to change the Law on special taxes on tobacco 
products had been adopted by the Government in June 1998 and would subseque ntly be submitted to 
Parliament.  43. The representative of Croatia said that goods and services had been subject to turnover tax 
pursuant to the provisions of the Law on the Turnover Tax of Products  and Services until the end of  WT/ACC/SPEC/HRV/6 
 Page 15 
 
 
 1997.  The turnover tax had been replac ed by value added tax, levied at a single rate of 22 per cent, with 
the entry into force of the Law on Value Added Ta x on 1 January 1998.  The Law on Value Added Tax 
provided full national treatment.  Businesses, wh ose turnover did not exceed HRK 50,000 (in the 
previous year, after certain deductions ), would be exempt from paying VAT. 
 44. Exempt from payment of VAT in domestic trade (Article 11) were house rents (residential);  
banks, saving banks, credit and saving institutions as well as in surance and reinsurance companies;  
medical services, dentist a nd similar services provided as private pr actice;  medical services in health 
institutions;  services and goods delivered by pr e-school, elementary school , secondary and high school 
and similar institutions and social care instituti ons;  and services provided and goods delivered by 
religious communities and institutions, and cultural a nd similar institutions.  Real estate transactions, 
except new construction;  company shares;  land;  and money and securities tr ansactions and deliveries 
were exempt from the value added tax.  Also exem pt from VAT were certain imported goods and goods 
in transit, namely temporary imports of goods exempt  from customs duty;  imports of humanitarian aid, 
except petroleum and petroleum pr oducts, tobacco, tobacco products, al cohol and alcoholic beverages;  
imports of bullion by the Croatian National Bank;  im ports of foreign legal means of payment, securities 
and company shares; and transit of goods through the cu stoms territory of the Republic of Croatia.  All 
exported goods were exempt from value added tax.  
Quantitative Import Restrictions, including Pr ohibitions, Quotas and Licensing Systems 
 45. The representative of Croatia said that the Law on Trade contained provisions in Articles 40 
to 43 regarding the imposition of impo rt quotas, including for the purpose of protecting infant industries.  
In view of Croatia's situation in the post-war pe riod, and the level of economic development, the 
Croatian Government had considered itself entitled  to recourse to GATT Article XVIII, but as the 
economic situation had improved the Government ha d decided not to invoke GATT Article XVIII, and 
the provisions of the Law on Trade would be changed accordingly.  He added that the Government had 
adopted a Decree on 12 July 1996, abolishing all import  quotas with immediate effect.  The abolition 
completed a process, begun in 1994,  of reducing the number of pr oducts subject to import quotas.  
Quantitative restrictions had been imposed on cert ain agricultural products, some foodstuffs, textile 
fibres, cement, iron and steel products, and machinery to facilitate the establishment of a market economy and assist areas damaged by war.  Asked about a temporary limitation/ban on sugar imports, 
the representative of Croatia said that the im port ban on sugar was lift ed on 2 May 1998 (Official 
Gazette No. 60/1998). 
 WT/ACC/SPEC/HRV/6 
Page 16  
 
 46. The representative of Croatia provided informa tion on import licensing procedures in document 
WT/ACC/HRV/25.  The most recent  decision on goods subject to impor t licences had been passed by 
the Government on 12 June 1996 in accordance with  Article 46 of the Law on Trade (Table 2 - see 
Annex). The licensing system could not be abolished without legislative approv al under Croatia's legal 
system.  He added that import lice nces applied to the usual products a llowed by Articles XX and XXI of 
the GATT 1994.  In accordance with the Law on Trade, licences could be prescribed for the purpose of 
fulfilling international agreements, ensuring State se curity, the protection of human, animal and plant 
health and protection of the environment, maintenance of public morals, and to control trade in works of 
art and precious metals.  Import licences were compulsory for tanks, war vessels, military arms, 
revolvers, pistols, guns, parts and eq uipment for arms, ammunition, swor ds and sabres, nuclear reactors, 
radioactive materials, isotopes, de rivatives, hydrocarbons, mint posta ge stamps, gold, coins, iron tubes 
and bars, and tractors (more than five years of age).  The licences were issued by the Ministry of 
Economy, which was also the licensing authority for imports of substances af fecting the ozone layer 
(Montreal Convention).  In addition, drugs and medical products, glands and other organs, vaccines, drugs, pharmaceutical goods, dialysis  appliances, and narcotics were subject to licences issued by the 
Ministry of Health;  imports of veterinary drugs and vaccines were licensed by the Ministry of 
Agriculture and Forestry;  and the State Office for St andardization and Metrology issued import licences 
for certain scales and measuring instruments.  The Ministry of Maritime Affairs, Transport and 
Telecommunications was the licensing authority fo r imports of telecommunications instruments and 
appliances such as transmitters, radars, radio remote  controls and radio naviga tion equipment. Licences 
for imports of armaments and milit ary equipment for the Croatian Army and Croatian Police were 
issued by the Ministry of Defence and the Ministry of Internal Affa irs.  The licensing regime applied 
equally to imports from all countries.   
47. The purpose of the licensing regime was to  monitor and control im port and export of goods 
which for various reasons were classified as sensitiv e, and Croatia had no intention to limit the quantity 
and value of imports, except as provided for in intern ational conventions such as the Montreal and Basel 
Conventions.  He added that the import licences fo r iron tubes and bars were temporary surveillance 
licences, issued to gather trade data.  Import licence s for combine harvesters had been abolished in 1997.  
The Government would review the import situatio n for other products in 1998 and would consider 
abolition of the surveillance licences.  Import lice nces for precious metals  and coins were granted 
immediately upon request.  
48. Licence applications were submitted to no more than one administrative body.  The amount and 
type of information to be submit ted was stipulated in the Decision on goods subject to import and export  WT/ACC/SPEC/HRV/6 
 Page 17 
 
 
 licences.  As the licences carried no limitation on the quantity or value of imports, applications could be 
submitted until the very moment of importation.  The validity of a licence could be extended upon 
request of the licence holder.  An administrative fee of HRK 1 25.00 was charged for each import 
licence. Licences were not transferable between importe rs.  Applications could on ly be rejected if the 
importer did not fulfil the conditions stipulated in international conventions for specific goods or did not 
meet standard criteria for the transportation of ce rtain goods.  An importer denied an import licence 
could file an administrative lawsuit with the Ad ministrative Court of the Republic of Croatia.  
 Other Restrictions  49. The representative of Croatia said that impor t quotas could be imposed to prevent balance-of-
payments difficulties.  Croatia w ould abide by GATT procedures and ru les - resorting to  Article XII of 
the GATT - should measures on imports prove necessary for balance-of-payments purposes. 
 Customs Valuation 
 
50. The representative of Croatia provided inform ation on the implementation and administration of 
the customs valuation agreement in document WT/ACC/HRV/19.  Rules on customs valuation were laid down in Articles 36 to 48 of the Customs Law of the Republic of Croatia a nd implemented through the 
Statute on the Conditions and Method of Determining Ta riff Bases (the Statute).  Both regulations had 
been assumed from the former Yugoslavia (which ha d joined the GATT in 1973) .  Article 36 (1) of the 
Customs Law stipulated customs valuat ion based on transaction values.  
 51. A member stated that Croatia's legislation wa s not fully consistent with the Agreement on the 
Implementation of Article VII of  the General Agreement on Tariffs and Trade 1994 (the Customs 
Valuation Agreement), in particular with respect to (i ) Article 2 - the use of transaction value of identical 
merchandise when customs value could not be dete rmined under the provisions of Article 1 of the 
Agreement;  (ii) the prohibitions in the Agreement regarding the determination of customs value based 
on the acceptance of the higher of two alternative valu es or minimum customs values;  and (iii) a system 
of reference prices esta blished under Article 44 of the Customs Law.  The representative of Croatia 
replied that the first point of appa rent non-conformity with WTO rules was due to a translation error.  
He acknowledged that the Customs Act did not explic itly prohibit the acceptance of the higher of two 
alternative values, however, in practice the lowe st value was chosen.  The Customs Law would be 
amended to include all prohibitions contained in Article 7.2 of the Agreement, including a ban on 
minimum customs values.  In his view, Article 44 of the Customs Law did not provide for a reference WT/ACC/SPEC/HRV/6 
Page 18  
 
 price system.  A valuation list had been intended for information purposes and to facilitate the work of 
Customs in its fight against fraud, howeve r, no such list had been established. 
 
52. On a further point of clarification he stated th at according to Article 10 of the Customs Law, test 
values would only be used in tran sactions between related parties at  the request of the importer, as 
provided for in Article 2.1(b) of the Customs Valu ation Agreement and the co rresponding Interpretative 
Note of the Customs Valuation Agreement.  He theref ore considered Croatian legislation to be in full 
conformity with the WTO.  His authorities were not familiar wi th the 1984 Decision on the Treatment of 
Interest Charges in the Customs Value of Import ed Goods.  The Customs Law would be revised to 
include the operative Interpretative Notes to the Cu stoms Valuation Agreement and to align its Article 
36 (5) and 41 more closely with Article 8 of the Agreement. 
 
53. Some members sought a commitment from Croa tia to apply fully Ar ticle VII and the WTO 
Agreement on the Implementation of the Article VII,  including the Interpretive Notes, from the time of 
its accession to the WTO.  In their view, Croatia should accede to the WTO without recourse to any 
special and differential treatmen t provisions of Article 20 and An nex III of the Customs Valuation 
Agreement.  Croatia was also asked to provide specif ic information on the procedures invoked to ensure 
full compliance with Article 13 of the Agreement on  Customs Valuation pertaining to the ability of 
importers to withdraw good from customs even thou gh the final valuation determination had not been 
made. 
 54. The representative of Croatia confirmed that  Croatia would be implementing fully the WTO 
Agreement on the Implementation of Article VII of the GATT 1994 from the date of accession.  Croatia 
would appreciate technical assistance form WTO members in changing its legislation related to customs 
valuation. 
 Other Customs Formalities  
55. A member noted that Croatia was developing rules of origin to ensure conformity with the 
WTO Agreement on Rules of Origin and requested a description of the rules to be used for non-
preferential and preferential trade.  Croatia was also  asked to describe how it would meet the obligations 
under the WTO Agreement on Rules of Origin for i ssuing binding assessments of origin, both for non-
preferential and for preferential regimes, within 150  days of requests by e xporters and importers, as 
provided under Article 2 (d) of the Agreement and Annex II, and outline the process of appeal against 
determinations of origin.  WT/ACC/SPEC/HRV/6 
 Page 19 
 
 
  
56. The representative of Croatia said that the basi c principles of rules of  origin were regulated 
under Articles 25 and 26 of the Law on Trade.  New regul ations on rules of orig in were in preparation 
and would be adopted by the Government in 19 98.  The new regulations, taking into account 
achievements within the World Customs Organizatio n on harmonization as well as the regulations and 
experience of WTO Members, woul d comply fully with the relevant WTO provisions.  The rules of 
origin would be described and e xplained in detail in the new regul ations, notably the criteria for 
determining "essential change ".  The last essential changes confer ring origin according to the present 
regulation involved either a change of tariff heading in relation to the non-originating materials used in 
the production of finished products, or non-origina ting materials not exceeding 50 per cent of the total 
value of the finished product.  Fulfil ment of one or the other criterion wa s sufficient in conferring origin.  
A regulation including company headquarters locati on among the requirements in determining product 
origin was valid only in the contex t of preferential duty treatment, and had not been applied since 1993. 
 57. Goods submitted for customs clearance were at  the disposal of the importer upon payment of 
customs duty.  An importer could be allowed a fi ve-day period to pay the duty provided a Customs 
Guarantee was submitted to the customs office.  A me mber, referring to press reports indicating that a 
considerable quantity of goods had been arriving in Croatia without payment of  customs duties through 
the border with the Bosnian Federation, stated that it was critical for the accession process that Croatia 
address the issue of uniform application of its cust oms regime vis-à-vis other countries.  This member 
requested a report from Croatia on how it planned to  implement strict customs enforcement at its 
borders prior to WTO accession.  In reply, the repres entative of Croatia said that Croatia was improving 
its customs controls, installing the most modern computer equipment and facilities for discovering 
traffic in prohibited goods.  
 
Anti-Dumping, Countervailing Duties, Safeguard Regimes 
 58. The representative of Croatia said that th e new Law on Trade contained provisions on anti-
dumping measures (Articles 48 and 49), counterva iling duties (Article 50) and safeguard measures 
(Articles 38 and 39).  More over, Article 40 of the Law on Trade aut horized the Government to introduce 
import quotas inter alia  as safeguard measures.  Article 55 of th e Customs Law, intended as a safeguard 
clause allowing the imposition of a 15 per cent specia l customs protection duty, had never been applied, 
and would be deleted in the new Customs Law.  Croa tia planned to introduce detailed regulations on 
anti-dumping, countervailing and safe guard measures in parallel with  the accession process, but not WT/ACC/SPEC/HRV/6 
Page 20  
 
 before the end of 1998.  Once adopted by the Gove rnment, the regulations would be provided to the 
Working Party. 
 
59. A member noted that Croatia's legislation in th e anti-dumping area was not  fully consistent with 
WTO requirements, notably regardi ng the determination of dumping.  The representative of Croatia 
acknowledged that Article 48 of the Law on Trade was not compatible with Article 2 of the Agreement 
on the Implementation of Article VI of the Ge neral Agreement on Tariff s and Trade 1994 (the 
Anti-Dumping Agreement) with respect to the defi nition of the substantive criteria for assessing 
dumping.  Article 48 would accordin gly be revised to ensure WTO conf ormity.  He adde d that Article 
49 would also be amended to bring it into conformity  with the "standing require ment" of Articles 4 and 
5 of the Anti-dumping Agreement.  He stressed th at the anti-dumping provisions in the Law on Trade 
could not be applied in the absence of a special im plementing regulation.  This  regulation, covering the 
anti-dumping procedure and the conditions for the application of the additional duty, would be in 
compliance with the Anti-Dumping Agreement.  
60. Regarding the imposition of countervailing m easures, a member noted that the Law on Trade 
did not provide for an injury requirement, nor did it appear to differentiate between so-called actionable 
and non-actionable subsidies within  the meaning of Article 8 of the Agreement on Subsidies and 
Countervailing Measures.  The represen tative of Croatia replied that an  injury criterion and a provision 
relating to the treatment of non-actionable subsidie s would be inserted in Article 50 of the Law on 
Trade.  B. Export Regulations
 
 
Customs Tariffs, Fees and Charges for Services Rend ered, Application of Internal Taxes to Exports 
 61. The representative of Croatia said that Article 34(2) of the Customs Law authorized the Government to impose customs duties on certain pr oducts in extraordinary circumstances and for 
reasons of protection.  A special export duty was levied temporarily  on certain items in response to 
market disturbance and to protect resources whic h were not easily renewable.  The Regulations 
concerning export duties were abolis hed by governmental decision in 1996. 
  WT/ACC/SPEC/HRV/6 
 Page 21 
 
 
 Export Restrictions 
 
62. The representative of Croatia said that th e Law on Trade allowed the imposition of export 
quotas in exceptional cases for the purpose of prot ecting non-renewable natural resources.  Products 
subject to export quotas in accord ance with Government Decision of  12 July 1996 are enumerated in 
Table 3 (see Annex).  The main products subject to export quotas were corn, crude oil, natural gas, 
wood, raw leather, glass, and newspaper wast e.  [Document WT/ACC/HRV/23 enumerates the 
respective quotas applicable in 1996.]  Quotas were set for a maximum period of one year.  By 
1 November each year, the Government was obliged to  pass a regulation stipul ating the quantity allowed 
to be exported in the following year.  The criteria and conditions applie d in the allocation of the quotas - 
predominantly public tendering - were laid down by the Government.  The invitation to tender was 
published in newspapers at least eight days prior to  the auction.  Minimum 10 pe cent of the quota was 
set aside for new producers, the remaining 90 per cent we re allocated on the basis of best offer.  Quotas 
were allocated twice a year, in principle, and an y domestic or foreign natural or legal person duly 
registered in the Republi c of Croatia could apply for the quotas .  Those not registered with the 
Commercial Court would need to apply fo r a quota through a regi stered exporter. 
 63. A member reminded Croatia that all quantitativ e restrictions not jus tified under specific WTO 
provisions had to be eliminated or otherwise brought into conformi ty with WTO rules upon accession.  
The representative of Croatia replied that the rema ining export quotas would be abolished gradually in 
parallel with Croatia's accession to the WTO.  Cont inuing the policy of bringi ng Croatia's trade policy 
measures into conformity with the principles of  the GATT 1994, the Government had adopted decisions 
abolishing the export quotas for crude oil, gas, corn and semi-proce ssed leather at the end of 1997 and in 
mid 1998.  After accessi on Croatia would, if necessa ry, consider the us e of other, WTO- consistent trade 
policy measures to ensure s upplies of essential raw materi als for the domestic market. 
 64. The representative of Croatia said that Croatia licensed expor ts of certain items (96 tariff 
positions) for statistical and monitoring purposes.  The products concerned are listed in Table 4 (see 
Annex).  The Ministry of Economic Affairs issued li cences automatically within  14 days upon receipt of 
the application.  Export Subsidies  
65. The representative of Croatia said export in centives had been allowed under the old Foreign 
Trade Operations Act, but no suppor t had been provided for the export of goods.  Croatia thus did not WT/ACC/SPEC/HRV/6 
Page 22  
 
 apply any export subsidies.  He added that the new Law on Trade containe d no provisions on export 
subsidies.  The Croatian Bank for Reconstruc tion and Development (HBOR) – a State-owned 
investment bank – would be establ ished and an export financing a nd guarantee system come into 
operation in late 1998.  The system would be based on the Berne Union and OECD consensus criteria.  
The bank was funded through the Government budget, bond issues and external sources (World Bank, 
EBRD, KfW, etc.).   
 
66. Import duty was not charged on imports destin ed for the production of goods to be exported and 
which remained under customs control, provided such importation was reported in advance.  Re-export 
transactions were also not subject to payment of duties, provided the imported goods would be declared 
in accordance with the principles of  temporary admission, and the custom s authorities were satisfied that 
the goods imported in this manner would leave Croati a.  Exported goods and re -export transactions were 
also exempt from VAT.  C. Internal Policies Affec ting Foreign Trade in Goods
 
 
Industrial Policy, including Subsidies  67. The representative of Croatia provided info rmation on subsidy progr ammes in relation to 
Article 25 of the Agreement on Subsidies and Co untervailing Measures (circulated in document 
WT/ACC/HRV/12).  Croatia did not have a subsidy programme per se , but rather an industry 
rehabilitation and reorgani zation programme.  The Government had as sisted an area heavily devastated 
during the war by financing the payroll of seven ente rprises located there and involved in the production 
of steel (Sisak Steel and TPK-EPO Zagreb), stee l refining (Valjaonica Kumrovec), and textiles 
(Dalmatinca, Diokom, Pazinka and Velebit) at an accumulated cost of approximately US$3.2 million by 
mid-1996.  Croatian Railways had also been subsid ized in the post-war period to the level of some 
US$400 million by the end of 1996.  The Government also  subsidized sea transport of tourists by paying 
the difference between revenues and expenditure on popular touris t lines and connections (about 
US$31 million in 1995 and US$35 million in 1996). 
 68. Requesting specific information on subsidies to shipbuilding, a member stated that Croatia had 
generally not provided sufficiently de tailed information on its subsidization policies, in particular with 
regard to policy objectives, levels of subsidization, e ffects, and the duration of su ch policies.  In reply, 
the representative of Croa tia said that the shipbuilding industry had not been subsidized since 1991 to 
date.  A restructuring programme for shipyards was under way, but the form and scope of subsidization  WT/ACC/SPEC/HRV/6 
 Page 23 
 
 
 had not yet been determined.  Asked about plans to  harmonize subsidies to fisheries and the canning 
industry to WTO requirements, he said that Croatia had provided data on subsidies which were in 
accordance with WTO rules.  He confirmed that Cr oatia maintained no subsidie s within the meaning of 
Article 3.1(b) of the Agreement on Su bsidies and Countervailing Measures. 
 Technical Barriers to Trade, Sani tary and Phytosanitary Measures 
 
Standards and Certification  69. The representative of Croatia said Croatian  state bodies were members of international and 
European standardization organizations, includi ng the ISO, IEC, ITU, EOQ, ETSI, CEN and 
CENELEC.  A new Law on Standardization (Stand ardization Act) had entered into force on 
10 July 1996.  The application of Croatian standa rds was no longer obligatory as from 1 January 1997.  
The new Law expressly mandated new Croatian standards to be based on international (ISO, IEC) or 
regional/European standards, or where these did not exist, on the standards of developed countries.  A 
large number of Croatian standards would be pr epared by accepting international and European 
standards.  A TBT enquiry point would be established in the Stat e Office for Standardization and 
Metrology by 1 December 1998, at the latest.  Draf t standards were publishe d in the State Office 
Journal, allowing at least 30 days for comments and remarks from the public.  The State Office for 
Standardization and Metrology would inform the In ternational Organization fo r Standardization (ISO) 
about the acceptance of the Code of Good Pract ice for Standardization by the end of July 1998. 
 70. A number of products were subject to quality  control, based on 55 regulations on mandatory 
testing and certification.  The ru les on quality control applied equally to domestically-produced and 
imported goods.  Border controls were carried out by market inspectors, who were officials of the State 
Inspection, in accordance with Ar ticle 6 of the Law on Import and Export Quality Control of Goods.  
Croatian goods were controlled during the production proc ess and when leaving the factory.  In addition, 
spot-checks took place at the retail le vel.  The list of affected product s had been reduced gradually to 29 
items.  The products concerned and the relevant re gulations are listed in  Table 5 (see Annex). 
 71. A list of legal persons authorized to perfor m mandatory product attestation was provided to the 
Working Party in document WT/ACC/HRV/22.  Prior exam ination of expert institutions, as opposed to 
sensor (visual) inspection, was re quired for agricultural products, alc oholic beverages, oil derivatives 
and textiles.  Following a sensor inspection, an insp ector could issue certificates without preliminary 
tests for repeat shipments.  Manufacturers' self-decla rations were not accepted under the present system.  WT/ACC/SPEC/HRV/6 
Page 24  
 
 The fees associated with quality control were en umerated in the Decision on Amounts to be Paid for 
Covering the Costs of Quality Control of Produc ts Upon Export and Impo rt (Officia l Gazette 
No. 42/96), which was provided to the Working Party. 
 72. Croatia was asked to justify the mandatory quality inspections at the border, particularly on furniture and textiles, and a member  reminded the representative of Croatia that Article 2.2 of the TBT 
Agreement stipulated that technical regulations should not be more trade-restrictive than necessary to 
fulfil a legitimate objecti ve, and that international standards should be used where these existed 
(Article 2.4).  Croatia’s "quality control" certific ation process was covered by the requirements of  inter 
alia the WTO Agreements on Import Licensing Procedures, Technical Barriers to Trade and Sanitary 
and Phytosanitary Measures.  Croatia's system did not seem consistent with  these requirements, in 
particular with the requirements for transparency, enquiry point information, prior publication, MFN or 
national treatment.  The system was burdensome to im ports and was not applied in a similar fashion to 
domestic goods.  Croatia should review and revi se the system. 
 
73. In response, the representative of Croatia said that quality cont rols were required to prevent 
deceptive practices or to protect human health and safety, animal or plant life and health, or the 
environment.  The only products controlled were thos e imported by a large number of importers and 
those widely dispersed in the Croatian market.  The respective government regulations were mostly 
former Yugoslav standards, based on international standards or national standards of other countries, or 
more recently adopted regulations based on internationa l or regional (European) standards.  The Law on 
Standardization envisaged acceptance of internationa l standards, European sta ndards, or standards of 
other countries, including recognition of foreign laboratory tests and doc uments issued abroad.  Croatian 
standards had been voluntary since 1 January 1997. 
 
74. Technical regulations would be  prepared to determine the e ssential requirements for products 
(safety, health, environmental protec tion, user protection) by harmoniz ing them with international rules 
and European directives.  It was also foreseen to regulate the acceptance of suppliers' declaration of 
conformity.  Conformity assessme nt procedures would be performed by testing laboratories and 
certification bodies accredited according to the ne w Croatian accreditation scheme, which was in 
compliance with international guides and recommenda tions.  The new accreditation system had been 
established by the State Office for Standardization and Metrol ogy (DZNM) in September 1997.  DZNM 
was affiliate to EAL (European Co-operation for Accreditation of Laboratories).  A Regulation on 
recognition of foreign test reports issued by intern ationally-recognized testi ng organizations had been 
published in July 1997, and had been in force since 1 September 1997.  WT/ACC/SPEC/HRV/6 
 Page 25 
 
 
  
75. The representative of Croatia  confirmed that Croatia would apply all obligations under the 
WTO Agreement on Technical Barriers to Trade from the date of accession without recourse to any 
transition period.  Sanitary and Phytosanitary Measures 
 
76. The representative of Croatia said that Croati a's sanitary and phytosan itary regime was based on 
the Law on Animal Health Protecti on and Veterinary Medici ne (Official Gazette NN 52/91).  A large 
number of other legal provisions (rules, decrees, inst ructions) had been adopted in accordance with this 
Law, in particular concerning the prevention and eradication of contagious diseases, the control of 
animal breeding and trade in animals and products of animal origin.  Rece nt examples included 
regulations relating to proteins in th e feed of ruminants, and imports of  pigs and wild boars from certain 
countries (Officia l Gazette 28/1997). 
 
77. Veterinary legislation was con tinuously adjusted to international standards, particularly to those 
established by the International Agen cy for Epizootic Diseases (Paris) and Codex Alimenta rius.  Import 
certificates were issued centrally by the State Veterinary Agency.  The border veterinary inspection controlled and inspected animals and animal products, animal offa l substances, semen, embryo, and 
other goods that could transmit cont agious diseases or affect huma n or animal life when imported, 
exported or in transit.  The veterinary inspec tion at the border was based on the Codex of the 
International Agency for Epizootic Diseases (Paris ), of which Croatia was a member;  international 
bilateral agreements on veterinary co-operation;  the Veterinary Law ("Official Gazette" No. 70/97);  
and International Conventions on the Harmonisation of Border Inspection of Products.  Croatia's 
veterinary inspection at the border was organised within the Department for Border Veterinary 
Inspection of the Ministry of Agriculture and Forestry - Veterinary  Directorate.  Five border veterinary 
stations - in Zagreb, Gorican, Osijek, Rijeka a nd Split – had been established by the Government 
Decision of 7 January 1991 ("Offici al Gazette" No. 58/91).  The borde rs where veterinary inspection 
was carried out were determined by the Decree of the Minister of Agriculture and Forestry on Borders 
of 6 January 1995.  The veterinary and sanitary insp ection requirements were id entical for shipments by 
domestic producers and producers from exporting countries.  Croatia ha d harmonized its border 
veterinary inspection system completely with the requirements of the European Union.  
78. Concerning phytosanitary regulations, the represen tative of Croatia said that the basic law in 
this area was the Law on Plant Protection ("Official Ga zette" No. 10/94), drafted in compliance with the WT/ACC/SPEC/HRV/6 
Page 26  
 
 basic principles and requirements of  international standards, instructions and recommendations (the 
International Plant Protection Convention and Euro pean and Mediterranean Organisations for Plant 
Protection).  The Regulation on the Sa nitary Inspection of Plants and Plant Protection Chemicals in the 
Traffic Across the State Border ("Official Gazette" No. 12/95) applied, as far as possible, measures and recommendations equivalent to meas ures applied by other members tr ading in similar products (plants 
and plant products).  Trade bans  could be imposed on seeds and pl anting materials to prevent the 
spreading of pests, but Croatian measures were not stricter than those internationally recommended and 
did not make any distinction between imported and domestic products.  The Government had provided 
funds for the introduction of information systems in 1998, and would seek funds necessary for the 
purchase of technical equipment (laboratory equipm ent and other facilities needed for the proper 
functioning of the phytosanitary inspection) in 1999. 
 
79. Plant protection inspection services at the borde r were organized within a special section of the 
Ministry of Agriculture and Forestry (the Department for Agri culture, Food and Tobacco Industries).  
Operating in five units, the inspection services co ntrolled a total of 19 plant border crossings where 
plants imported or transported thr ough Croatia were subject to mandator y examination.  The Institute for 
Plant Protection in Agriculture and Forestry examined plants for export.  The border inspection service cooperated with the Institute in organizing quarantine-rel ated activities and maintaining quarantine 
facilities. 
 
80. Food products were subject to various laws and regulations, notably the Law on Food Quality 
and Food Quality Control, regulations on additives, ad missible levels of pesticides, toxins, mycotoxin, 
metals and like substances, and regulations concerning microbiotic quality control.  The list of imported 
products subject to quality control and the relevant regulations (Tab le 5 - see Annex) included 27 
categories of food products.  Prior examination was required for Croatian exports of canned meat, wine 
and plum brandy.    81. The Law on Health Safety and Controls of F oodstuffs and Goods of Ge neral Usage ("Official 
Gazette" No. 1/97 - final draft) sti pulated the health and safety conditi ons for imported or domestically-
produced foodstuffs and goods of general usage.  In a ddition, the Law provided for health control of the 
production and distribution of foodstuffs and goods of general usage.  The provi sions of the Law also 
applied to raw materials, spic es, additives and substances us ed for enriching foodstuffs. 
 
82. Foodstuffs were defined as a ll products used as food or dri nk, processed or non-processed, 
including drinking water.  Goods of general usag e included tableware, accessories, equipment and  WT/ACC/SPEC/HRV/6 
 Page 27 
 
 
 apparatus for production of foodstu ffs and goods of general usage a nd containers, toys, perfumery, 
cosmetic and toilet preparations fo r body and face, washing preparations , tobacco, tobacco products and 
smoking accessories as well as certai n goods and instruments coming into close cont act with skin or 
mucous membrane when used.  83. According to Article 5, paragraph 1, point 3 of the Law, foodstuffs or goods were considered 
unsafe for human health if their se nsory characteristics had changed or if they contained pathogenic 
micro-organism or pathogenic parasite;  bacteria toxi n, micro toxin, histamine, and similar substances in 
quantities exceeding those determined by the regulations ;  natural toxin or other natural toxic substances 
in quantities noxious for human hea lth;  pesticides, metals, non-metals , veterinary medicaments residue 
and other noxious substances in qua ntities harmful to human health;  additives not allowed for the 
production of foodstuffs and other goods of general usage or add itives in quantities determined 
inadmissible by special regulations ;  radio nuclides in quantities exce eding the limit regulated by the 
Law;  mechanically damaged admixtures noxious fo r human health or causing aversion;  materials 
originating from dead animals or animals suffering from disease noxious  to human health; or if they 
contained other micro-organisms, parasites or substances in quantities harmful to human health. 
 84. Health control of production and distributi on of foodstuffs and othe r goods was performed by 
the government authority in charge of sanitary insp ection and, for foodstuffs of animal origin, by the 
government authority in charge of veterinary inspectio n.  The competent authority had the right to take 
samples to be tested by authorised laboratories.  Health control of imported foodstuffs and other goods 
were effected by the border sanitary  inspector and by the border veterina ry inspector (products of animal 
origin) in accordance with Article 32 of the Law.  Th e costs of controls and health safety inspections 
were borne by the importer (Article  35).  The importer was not allo wed to distribute or process the 
imported goods until he received the of ficial decision that the goods were safe. 
 85. Regulations adopted on the basi s of Article 50 of the Law on Heal th Safety and Health Control 
of Foodstuffs and Goods had been published in the "Official Gazette" No. 46/94 and included Rules on 
Health Safety of the Drinking Water;  Micro-bi ological Standards of Foodstuffs;  Quantities of 
Pesticides, Toxins, Micro- toxins, Metals and Histamine and Sim ilar Substances that Foodstuffs May 
Contain and Other Conditions in Rela tion to Health Safety or Foodst uffs and Other Goods;  Conditions 
of Preserving Food and other Goods by  Ionising Radiation;  Health Safe ty of Dietetic Food;  Conditions 
related to the Health Safety that  the Goods of General Usage have to Comply with in Order to be 
Distributed on the Market;  Prepar ation and Sale of Foodstuffs Out doors;  Micro-biological Cleanness 
Norms and Methods of their Defining;  and Specia l Working Cloths and Shoes for Workers who in WT/ACC/SPEC/HRV/6 
Page 28  
 
 Production and Distribution Come into Close Contact w ith Foodstuffs, Cosmetic and Toilet Preparations 
for Body and Face.  Croatia was also preparing a nd adopting other implementation rules and regulations 
based on Article 50 of the Law. 
 86. The representative of Croatia confirmed that Croatia's sanitary and phytosanitary standards 
system would be in compliance with WTO provi sions under the Agreement on the Application of 
Sanitary and Phytosanitary Measures as of the date of accession to the WTO. 
 Trade-Related Investment Measures  87. The representative of Croatia said that Croa tia had no trade-related investment measures in 
place at the present time, nor did it intend to in troduce any such measures in  the future.  Croatia 
accordingly did not seek to notify any measures  for elimination under the provisions of the WTO 
Agreement on TRIMs.  
State Trading Entities 
 88. Referring to the definition of  State trading enterprises contained in paragraph 1 of the 
Understanding on the Interpretation of Article XVII  of the General Agreement on Tariffs and Trade 
1994, the representative of Croatia st ated that Croatia did not have or maintained any enterprise covered 
by the provisions of Article XVII.  Ten large enterprises were under di rect State owners hip, but none of 
these public enterprises were grante d exclusive or special rights or pr ivileges which could influence, 
through their purchases or sales, the level and dire ction of imports and exports.  Upon accession to the 
WTO, his Government would notify any State-tr ading enterprise, monopoly or exclusive service 
supplier, existing at the time, in accordance with  Article XVII of the GATT and Article VIII of the 
GATS.  89. Responding to specific questions from members,  he said that a Stat e-owned company (Astra 
International) engaged in foreign tr ade with the same right s and obligation as any other Croatian foreign 
trade company.  Most petroleum and petrochemica l products were produced and distributed by the 
State-owned enterprise INA, which competed with mo re than 20 smaller companies in the distribution 
and trade in crude oil and oil product s.  He stated that Hrvatske su me (Croatian Forests) was a public 
utility company operating in full conformity with Ar ticle XVII of the GATT.  Other public enterprises 
included Hrvatske ceste (Croatian Roads), Hrvatska  vodoprivreda (Croatian Wate r Utilities),  Hrvatska 
posta i telekomunikacija (Croatian Post and Telecommunications),  Hrvatska elektroprivreda (Croatian  WT/ACC/SPEC/HRV/6 
 Page 29 
 
 
 Electricity), Hrvatske zeljeznice (Croatian Railways ), Hrvatska radio televi zija (Croatian Radio and 
Television), Jadrolinija (Adriatic Line), and Narodne novine (Offi cial Gazette).  Alcohol and tobacco 
products were produce d and distributed by a large number of companies, none of which were State-
owned or State-manda ted.  Former socially-owned farms ha d been transformed into joint-stock 
companies, and most of them had been privatized.  
90. The Law on State Commodity Reserves (Official Gazette 68/1997)  stipulated public 
stockholding of some agricultural and non-agricult ural products.  Commodity reserves had been 
established to ensure essential supplies in case of war, threat of war, or  natural disaster.  This function of 
commodity reserves as permanent reserves was en sured by determining the goods needed for those 
situations.  The main function of commodity rese rves would be ensured wi thin the framework and 
appropriate manner for the set objectives.  The Directorate for Commodity Reserves (formerly the State 
Directorate for Commodity Reserves) - a non-profit governmental organization - intervened in the 
market only upon order by the Government.  In certai n circumstances the Directorate could intervene to 
prevent domestic price increases on agricultural and food products.  Purchases would be made by tender, 
and the Directorate would select  the most favourable bid on th e basis of purely commercial 
considerations in line with the non-discrimination principle of Ar ticle XVII of the GATT.  The 
Directorate could export goods bought  through intervention in the domestic market by government 
decision only. 
 
Free Zones, Special Economic Areas  91. The representative of Croatia said that six customs zones were operating in Croatia following 
the entry into force of the new Law on Free Zones (13 June 1996).  These were situated in Zagreb, 
Krapina, Kukuljanovo, the port of Rijeka, Šibenik and Os ijek.  A free zone coul d be established by one 
or more domestic legal person.  The user of the zone could be its founder, or any other foreign or 
domestic legal or natural person.  Activities carried out in a free zone included goods production and 
processing, goods assembly, wholes ale trade warehousing, and repackaging.  Banking and other 
payment transaction activities such as insurance and re insurance could take place in a free zone subject 
to approval by the Ministry of Finance.  Operat ors paid no customs duties or other taxes on imported 
goods intended for production and consumption in the customs zone.  Goods processed in the zone for 
the domestic market would be subject to custom s and other duties on the raw materials and other 
imported inputs used in the production process.  Us ers engaged in or participating in infrastructure 
construction within the zone, in projects with a value exceeding HRK 1 million, were exempt from WT/ACC/SPEC/HRV/6 
Page 30  
 
 paying profit tax during the first five years of business activities.  Other users paid profit tax equal to 50 
per cent of the standard rate. 
 
Government-mandated Co untertrade and Barter 
 92. The representative of Croatia said that the State did not conclude compensation deals in its own 
name and did not in any way participate in the conc lusion of compensation deals.  All laws and trade 
policy measures, including customs duties, licences, etc. applied to goods exchanged in compensation 
deals. Such deals were concluded by natural or lega l persons, and the contracts were registered with the 
Ministry of Economy for statistical purposes.   In  1995, the Ministry had recorded 930 compensation 
contracts, accounting for around 5 per cent of Croatia's foreign trade.  In 1996, the number of contracts 
registered in the Mi nistry of Economy fell to around 600, and the decline had continued in 1997.  The 
number of such contracts was expected to fall as  the economy was consolidating and stabilizing in 
Croatia and in neighbouring countries.  
93. The previous Law on Foreign Trade Operations  had also regulated a system of long-term 
production cooperation.  Long- term production cooperati on referred to a continuous exchange of goods 
in so called tie-in trade for a period of not less than three years (the le gal minimum).  The parties to such 
arrangements could agree that no payment would be exchanged for each transaction, but the balance 
might be paid to a bank account.  In 1995, 90 cont racts were in force on long-term manufacturing 
cooperation between Croatian  firms and their partners, mostly fr om Germany, Italy and the Russian 
Federation.  Goods exchanged in long-term production transactions we re subject to the normal trade 
policy instruments, including customs duties and licen sing requirements.  The new Law on Trade, which 
entered into force in February 1996, did not specifi cally regulate these types of  contracts.  Companies 
were free to enter into such arrangements  if they found it in their own interest. 
 Government Procurement  
94. The representative of Croatia said that Parl iament had passed the Law on Procurement of Goods 
and Services and Sub-contracting in mid-Decemb er 1997.  The Law replaced the Government’s 
Regulation on the Procedure for Procurement of Go ods and Services and Sub- contracting.  The Law 
entered in force in March 1998.  
95. Entities under obligation to apply the Law on Procurement of Goods and Services and 
Sub-contracting were Government authorities and other State authority bodies;  bodies of the local  WT/ACC/SPEC/HRV/6 
 Page 31 
 
 
 government and self-government units;  legal persons owned by the Stat e or legal persons using funds 
from the State budget for their regular activities and capital investments;  legal persons using budget 
guarantees or other insurance concerning the proc urement contract or other support related to 
commitments assumed under that contract;  and le gal persons using financing from extrabudgetary 
funds (Pension Fund, Croatian Health Insurance Fund, Employment Fund and other extrabudgetary 
funds established by the Government). 
 
96. The Law applied to all public procurements with the total value of goods, services and works 
exceeding HRK 200,000 (US$32.000) in a fiscal year .  Bidders, regardless of their residence and 
headquarters, except when the purchaser would limit th e participation in tenders  to domestic suppliers 
(i.e. apply national preference), were allowed to par ticipate in tenders.  The Law stipulated conditions 
and liabilities of the purchaser with regard to app lication of national preference, as well as other 
conditions concerning government  procurement including procurement implementation, pre-
procurement, international tendering (obligatory for works and goods with total invoice value 
exceeding HRK 12 million (US$2 million), or HRK 6 million (US$ 1 million) for services), the 
procurement procedure, conditio ns for tendering, evaluation and comparison of offers, and 
implementation and monitoring of the implementation of the Law. 
 97. A member expected Croatia to become memb er of the Agreement on Government Procurement 
by tabling a schedule of commitment s to the GPA Committee no later than three months after the date of 
accession to the WTO.  In reply, the representative of  Croatia stated that, mindful of the rather limited 
and selective present membership of the Agreemen t on Government Procurement and that no major 
obstacles for international bidders were experienced in enforcement of the national law on government 
procurements, his Government would apply offici ally for observer status to the Agreement on 
Government Procurement.  This would enable Croati a to get more acquainted with the practical aspects 
of the Agreement's disciplines and determine an adequa te coverage and staging, in order for Croatia to 
start negotiations on accession to the Ag reement at an appropriate stage. 
 
Transit 
 98. The representative of Croatia said that tran sit of goods through the customs territory of the 
Republic of Croatia was regul ated by Articles 275 to 281 of the Customs Law.  In addition, provisions 
concerning transit transport were included in the Ar ticles dealing specifically with rail, road, sea, 
waterways and air transport, as we ll as in the Articles concerning de spatch of goods to another customs 
office for customs clearance.  The carrier submitted tr ansit documents to the customs office at the point WT/ACC/SPEC/HRV/6 
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 of entry.  The customs office would inspect the goods and transit vehicles, and pr ovide an escort to the 
customs office at the point of exit .  The carrier was responsible for the carriage of goods and the transit 
documents within the customs territory.  The customs office of exit would check the transit documents 
and customs marks and, if necessary, inspect the goo ds and vehicles.  Goods prohibited to import into 
Croatia could not be carried in tr ansit through the customs territory. 
 
Agricultural Policies 
 [Information on domestic support a nd export subsidies in agricultur e was circulated in document 
WT/ACC/SPEC/HRV/1 on 30 July 1996;  revi sed information was provided in document 
WT/ACC/SPEC/HRV/1/ Rev.1 of 30 June 1997.  Croatia submitted an initial offer on market access for 
trade in agriculture on diskette;  Members we re notified in document WT/ACC/SPEC/HRV/2 on 
14 May 1997.  Revisions to the initial o ffer have been circulated in document 
WT/ACC/SPEC/HRV/2/A dd.1 of 3 July 1997.] 
 
99. The representative of Croatia said that all qua ntitative restrictions and supplementary fees and 
charges for imported agricultural products, including special compensatory fees and variable levies, had 
been abolished with the introduction of the new cust oms tariff on 1 July 1996.  The new tariffs were 
compound rates, consisting of an ad valorem  and a specific duty elem ent, for several products. 
 
100. The Government guaranteed the producer prices  for six commodities cons idered essential for 
the population's needs and the processing industry, i.e.  wheat, sugar beet, sunflower, soybeans, rapeseed 
oil and tobacco.  [The guaranteed prices  applicable in 1998 are listed in document 
WT/ACC/HRV/39/Add.2, re ply 22].  The system of guaranteed  prices was implemented through the 
Directorate for Commodity Reserves.  The producer  price for milk was also guaranteed, but the 
guarantee had not been enforced recently as the dome stic price had exceeded the minimum level.  The 
abolition of the system of guaranteed prices was a long-term policy objective. 
 
101. The allocation in the 1996 State budget for fi nancial incentives and input subsidies to the 
agricultural sector amounted to HRK 510 million, repr esenting just over 4 per cent of the total value of 
agricultural output in 1996.  Production subsidies ha d been provided for origin al-breed Croatian cattle 
and horses, meat and bone flour, milk, semen, olives  and island vineyards.  Major input subsidy items 
were mineral fertilizers and certified agricultural se eds.  Croatia did not provide export subsidies for 
agricultural and food products. 
  WT/ACC/SPEC/HRV/6 
 Page 33 
 
 
 102. Croatia was reforming its syst em of agricultural subsidies.  This was a lengthy process as it 
required the establishment of a land registry to allow the Government and the Ministry of Agriculture 
and Forestry to define "less favou red areas" and other factors determining subsidy payments.  The new 
system would correspond to the requiremen ts of the Agreement on Agriculture. 
 [to be completed] 
 
Trade in Civil Aircraft  103. A member sought a commitment from Croatia to  adhere to the WTO Agreement on Trade in 
Civil Aircraft from the date of accession.  The representative for Croatia confirmed that Croatia would 
become a party to the Agreement on Trade in Civil Aircraft (document WT/ACC/HRV/42).  An official 
application, together with a proposed tariff schedul e as basis for the accession negotiations, would be 
submitted to the WTO Secretariat by 1 October 1998.  
Trade-Related Intellectual Property Regime 
1. General (a) Intellectual property policy  
104. The representative of Croatia said that Croa tia had adopted the former  Federal (Y ugoslav) Law 
on the Protection of Inventions, Te chnical Improvements and Distinctive signs (NN 53/91).  The Law 
had been changed and amended in April 1992, and the title changed to I ndustrial Property Law, 
governing patents, trade and service marks, and industr ial designs.  The system of industrial property 
protection was under revision, and as  part of the reforms each area of industrial property would be 
governed by a separate law.  Current legislation in cluded a technical advance criterion which would not 
be included in future legislation.  105. A member was concerned about the pace of dr afting and ratification of  intellectual property 
laws in Croatia, and encouraged the Government to  strengthen its efforts to enact legislation and 
establish the necessary administrative framework for effective implementation prior to WTO accession.  
Asked whether Croatia would seek tr ansitional arrangements, the represen tative of Croatia replied that 
Croatia would respect the provision s of Article 65.3 of the TRIPS Agreement.  A member stated its 
policy that acceding countries be in full conformity wi th the TRIPS Agreement on the date of accession, 
with no transition permitted.  Arti cle 65.2, 3 and 4 were included to provide a period of transition for 
those countries that were alread y members of the GATT and were en titled to be Members of the WTO WT/ACC/SPEC/HRV/6 
Page 34  
 
 without additional accession negotiations.  The transition provisions in  Article 65.2, 3 and 4 were part of 
the balance achieved between developed and devel oping countries regarding intellectual property, 
recognizing that most developing and non-market economy countries had further to go than did 
developed countries to bring their laws and practices into  conformity with TR IPS.  Newly acceding 
countries should have no such need since they coul d make the necessary changes during the course of 
accession negotiations, to become affective on the date  of accession, if not befo re.  Croatia should report 
to the Working Party on its specific plans to alter it s current legislation to be in a position to fully 
implement the TRIPS Agreement by the date of accession.  106. The representative of Croatia proposed (i n document WT/ACC/HRV/38) that Croatia be 
granted a transitional period for implementation of  the TRIPS Agreement up to 30 June 1999 as his 
Government assessed that this peri od was objectively needed for the complete harmonization of existing 
legislation with the TRIPS Agreement, and that all other procedures for Croatia's accession to the WTO 
could be finalized before  30 June 1999.  Croatia planned to im plement fully the TRIPS Agreement by 
June 1999. 
 
(b) Responsible agencies for polic y formulation a nd implementation 
 107. The representative of Croatia said that the Stat e Intellectual Property O ffice of the Republic of 
Croatia had been the competent authority for industrial property since its establishment, and for 
copyright and neighbouring rights since November 1996.  The Ministry of Agriculture and Forestry was 
the competent authority for the protection of new plant varieties.  (c) Participation in international intellectual property agreements 
 
108. The representative of Croatia said that Croa tia was a party to the C onvention Establishing the 
World Intellectual Property Orga nization;  the Paris Convention for the Protection of Industrial 
Property;  the Madrid Agreement Concerning the International Registration of Marks;  the Nice 
Agreement Concerning the Internatio nal Classification of Goods and Se rvices for the Purposes of the 
Registration of Marks;  the Locarno Agreement Establishing an Interna tional Classification for 
Industrial Designs;  the Berne Convention for the Pr otection of Literary and Artistic Works, Paris 
Act 1971;  the Brussels Convention Relating to th e Distribution of Programme - Carrying Signals 
Transmitted by Satellite;  and the Universal Copyright Convention, 1952 and 1971.  Croatia intended to 
seek membership of the Rome Convention upon enac tment of legal provisions granting protection for 
phonogram producers  and broadcasting organizations in  compliance with the Convention.  This was  WT/ACC/SPEC/HRV/6 
 Page 35 
 
 
 likely to happen in 1998.  Croatia had deposited the instrument of accession to the Patent Cooperation 
Treaty with the Director-General of the World In tellectual Property Organization on 30 April 1997.  As 
stated in the instrument of accession, the Patent Cooperation Treaty entered into force in Croatia on 1 
July 1998.  Croatia also intended to accede to th e Hague Agreement Concerning Deposit of Industrial 
Designs in the near future.  
(d) Application of national and MFN treatment to foreign nationals 
 109. The representative of Croatia said that Croatian  legislation granted natio nal treatment to foreign 
nationals, while MFN treatment was not applied for th e time being.  Foreigners and nationals enjoyed 
equal treatment in civil and criminal procedures. 
 
2. Substantive standards of protection, including procedures for the acquisition and maintenance of 
intellectual property rights 
 
110. Regarding acquisition of intellectual property  right and know-how, the representative of Croatia 
said that the Law on Foreign Trade Operations, Chapter VIII, had contained certain restrictive clauses on acquisition of know-how from foreigners, but this legislation had not been in force since January 
1996. 
 
(a) Copyright protection  111. The representative of Croatia said that the ba sic provisions on copyright  and neighbouring rights 
were contained in the Chapter on basic freedom and rights of men and citizens in the 1990 Constitution.  
In accordance with a 1991 Law on adoption of Yugos lav federal laws in the areas of education and 
culture, Croatia had adopted the Copyright Law of  1978 as amended in 1986 and 1990, with further 
changes and amendments under Croatian Law of 1993.  Croatian legislation pr otected performers only, 
but also regarding the fixation of a picture or pi ctures in combination with sound.  An Amended 
Copyright Law, ensuring protection for phonogram producers and broadcasting organizations in 
accordance with the requirements of the TRIPS Ag reement, had been submitted to the legislative 
procedure.  Croatia intended to introduce a new Law on Copyrights and Neighbouring Rights to 
harmonize its legislation with all as pects of existing international standa rds.  This Law would be drafted 
after the entry into force of the Amended Copyright Law. 
 WT/ACC/SPEC/HRV/6 
Page 36  
 
 112. Copyright covered economic rights and mora l rights.  Economic right s were transferable inter 
vivos  and mortis causa ;  moral rights were only transferable mortis causa .  The general term of duration 
of economic rights was the life of the author and 50 years after his/her death.  Special terms of 
protection of anonymous and pseudonymous works we re 50 years from the day the work had become 
available to the public, and 25 year s for photographic films, photogra phic works and works of applied 
art.  The duration of moral rights was not limited.  Computer programmes we re protected as literary, 
scientific and artistic works, and databases could be  protected as collections of works.  Persons could 
become owners of copyright by virtue of law in th e course of employment or organization of collective 
works such as the creation of databases or encyclop aedias.  Copyright legislation provided for exclusive 
distribution rights, including rental  and lending rights, for artists and performers.  Croatia had adopted 
the Berne Convention, ratified by the former Yugosl avia, with a reservation relating to the right of 
translation.  However, the Copyright Law granted th e author of a work published in a foreign language 
and enjoying protection under the provi sions of the Berne Convention, the right to remuneration for the 
translation.  The said reservation on the Berne C onvention had been removed in the Amended Copyright 
Law submitted to the legisla tive procedure on 24 March 1998. 
 
113. Limitations to the exclusive right were regul ated under the Law.  Free  use (exploitation) of 
works was allowed for personal use, public informa tion or for educational or scientific purposes. 
 
(b) Trademarks, including service marks 
 114. The representative of Croatia said that the pr otection of trade and serv ice marks wa s regulated 
on the basis of the Industrial Property Law, Regulations for the Procedure for the Grant of Trademark Rights, and the Law Governing Ad ministrative Fees for the Establ ishment of Rights of Industrial 
Property.  The acquisition of trademark rights was ba sed on registration;  the procedure was instituted by 
filing an application with the State Intellectual Property Office of the Republic of Croatia.  A granted 
right was entered in the trademark re gister and published in the official gazette.  A mark was valid for a 
period of ten years from the day the trademark applica tion was filed.  The validity could be extended an 
unlimited number of times provided the trademark was used and maintained through payment of the 
prescribed administrative fees.  The State Intellectual Property Office could decide to terminate a trademark not used by the owner for any ju stified reason for more than 5 years. 
 115. The representative of Croatia said that a ne w Trademark Law would be  in force by June 1999. 
  WT/ACC/SPEC/HRV/6 
 Page 37 
 
 
 (c) Geographical indications, in cluding appellations of origin 
 
116. The representative of Croatia said that the pres ent system of protection was based on Articles 37 
to 43 of the Industrial Property La w.  The area was also regulated under the Law on Wine and 
Regulations on the Quality of Wine and the Quality of Spirits.  An appellation of origin was established 
by entering the geographical name an d its related product in a register kept by the State Intellectual 
Property Office.  Entries into the register were made ex officio  upon proposals from the Croatian 
Chamber of Commerce.  The appellation of origin of a product could be established in favour of a 
foreign person on the basis of reciprocity under intern ational agreements concluded or acceded to by the 
Republic of Croatia.  
117. Croatia intended to introduce a new separate  Law on Geographical Indications, taking into 
account Articles 22 to 24 of th e TRIPS Agreement.  The Law w ould be in force by June 1999. 
 (d) Industrial designs 
 
118. The representative of Croatia said that indus trial designs were regula ted under the Industrial 
Property Law and Regulations on the Procedure for the Grant of Rights to Models or Designs.  A new 
Law on Ornamental Designs and Models (Industrial De sign) in conformity with the TRIPS Agreement, 
in particular its Arti cles 25 and 26, would be  in force by June 1999. 
 119. A right to a model or a design was granted for a period of ten years as from the date of filing the 
application with the State Intellec tual Property Office.  The right wa s non-renewable.  Textile designs 
were protected cumulatively by the C opyright Act, as a work of applied art and industrial design, and by 
the Industrial Property Law as a model or design.  In the latter case, the applicant would need to indicate 
whether protection was sought for three-dimensio nal (model) or two-dimensional design (design). 
 (e) Patents 
 
120. The representative of Croatia said that a firs t draft of a new Patent Law, based on the WIPO 
model law and Austrian le gislation, remained under discussion with in his Government.  The new Patent 
Law was expected to be in force by June 1999.  Ot her legislation relevant to the Law would also be 
adopted, including the Law on Agents, the Law on Fees, the Regulation on Expenses, the Law on 
Inventions by Employees, and the Law on Confidential Inventions. 
 WT/ACC/SPEC/HRV/6 
Page 38  
 
 121. A patent was valid for a period of 20 years c ounting from the date of filing the application.  
Microorganisms and microbiological processes were patentable under the Rules on Procedure for Patent 
Grant. 
 122. Provisions on compulsory licensing could be f ound in the Industrial Property Law (Article 139).  
A request for the grant of a compulsory licence could not be submitted earlier than four years after the 
filing date of the patent application, or three years af ter the date of the patent grant if this term expired 
earlier.  According to the Law, the patent owner wo uld be considered not usi ng or insufficiently using 
the patent if, inter alia , domestic demand was satisfied by im portation to a great extent, or the 
importation of the products manufactured according to  the protected invention hampered or obstructed 
the industrial application in the country.  No compulso ry licence had been issued thus far.  Croatian 
legislation on compulsory licensing would be harm onized with Article 31 of the TRIPS Agreement in 
the new Law on Patents.  123. The fees and charges involved in granting a pate nt were established in accordance with the Law 
on Administrative Fees in the Field of Industrial Property and the Decision on the Procedure Special 
Charges and Information Service Charges of the State Intellectual Property Office.   (f) Plant variety protection 
 
124. The representative of Croatia said that this area was regulated by the Law on the Protection of 
Agricultural Plants.  The Law, which inter alia  regulated the protection of new plant varieties, was 
enacted in November 1997 and became effective on 13 December 1997.  The La w was in compliance 
with the UPOV Convention, which Croatia intended to join.  Nati onal treatment was accorded on the 
condition of reciprocity, as provided by the UPOV Convention. 
 (g) Layout designs of integrated circuits 
 
125. The representative of Croatia said that Croa tia planned to introduce a Law on the Topographies 
of Integrated Circuits in compliance with the provi sions of Articles 35 to 38 of the TRIPS Agreement.  
The Law would be in force by June 1999.   WT/ACC/SPEC/HRV/6 
 Page 39 
 
 
 (h) Requirements on undisclosed information,  including trade secrets and test data 
 
126. The representative of Croatia said that a Law on  the Protection of Data Secrecy had entered into 
force at the end of 1996.  Clauses regulating th e protection of information within government 
administration or by enterprises themselves c ould be found in the Law on General Administrative 
Procedure (Article 150), the Law on Government Offi cials and Employees (Art icle 32), the Penal Law 
(Article 295), the La bour Law (Articles 89, 92 (paragraph 4), 93 and 155), the Trade Law (Article 58) 
and the Company Law (Articles 248, 273 and 629).  Te st data and other information supplied in the 
context of approving the marketing of pharmaceutical and of agri cultural chemical products were 
protected by special regulations (b y-laws) applied by the Ministry of Health and the Ministry of 
Agriculture and Forestry.  The rules did not differ from the normal provisions applied in other countries.  
Article 16 of the Law on Medici nes and Medical Products stipulated that documents received on 
pharmaceuticals or medical products should be trea ted as trade secrets. 
 3. Measures to control abuse of intellectual property rights 
 
127. The representative of Croatia said that mechan isms for the protection of intellectual property 
rights existed in administrative, civi l and penal law.  Abuse of copyri ght and the right of performers was 
controlled by agents of the organization of aut hors or the organization fo r performers' rights.  
Representatives registered with the State Intellectual Property Office could act on  behalf of foreign and 
domestic legal and natural persons in the procedure for protection of industrial property rights.  A new 
Law on Execution and Safeguard included compulsory measures (fines, arrest and imprisonment) which 
could be applied in an execute procedure.  
128. Punishment - fines or imprisonment - for the infringement of copyright was set out in the Penal 
Law as well as in the Amended Copyright Law.  Fi nes for infringement of the rights of authors or 
performers could amount to  (maximum) HRK 60,000. 
 
4. Enforcement 
 129. The representative of Croatia said that the Law on Enforcement entered into force on 
12 August 1996.  [A translated copy of the law woul d be provided to the Working Party.]  Articles 298 
and 299 of the Law contained provisions on provisiona l measures.  A court coul d also order provisional 
measures at the request of the infringed party in accordance with Article 442 of the Law on Legal 
Proceedings.  In his view, Croatian legislation fu lfilled the requirement of Article 44 of the TRIPS WT/ACC/SPEC/HRV/6 
Page 40  
 
 Agreement regarding the right of a party to ask for injunctions.  He also noted that the Law on the 
Protection of Market Competition could be invoked in disputes over the infringement of intellectual 
property before a commerci al court in Croatia. 
 130. In the combat against illegally produced phonogr ams, the authorities in Croatia had seized 
12,899 video tapes, 9,646 audio tapes and 4,873 co mpact discs in 1996.  During 1997, 14,405 video 
tapes, 11,986 audio tapes and 2,920 compact discs had been seized 
 (a) Civil judicial proc edures and remedies 
 131. The Commercial Courts seated  in Zagreb, Osijek, Rijeka and Split had initial jurisdiction over 
intellectual property matters.  The High Commerc ial Court (in Zagreb) was the competent second-
instance body for the protection of in tellectual property.  Decisions of the High Commercial Court could 
be appealed to the Supreme Court of the Republic  of Croatia, which c ould also decide on the 
infringement of procedural rights.  The procedures in a case of infri ngement before a court were laid 
down in the Law on Civil Procedure, which also cont ained provisions on the right to obtain information 
to develop the case of a right holder.  Depending on the complexities of the case, the time between the 
initiation of the case before the c ourt, and the court's decision, could take from 2 to 3 months to more 
than one year.  Court decisions were  set out in writing and substantiated in accordance with Article 338 
of the Law on Legal Proceedings. 
 132. The dissatisfied party to a dispute could invoke regular legal remedies (appeal and objection) or 
extraordinary legal remedies (request for the pr otection of legality, review or repetition of the 
procedure).  For example, a reque st for review of a decision of the High Commercial Court should be 
filed with the Supreme Court within 30 days of receip t of the decision of the ap pellate court.  A request 
for the protection of legality should be filed with th e Supreme Court by the Croa tian State At torney if 
the law or a treaty had been violated by a final decision. 
 
(b) Provisional measures 
 133. The representative of Croatia said that th e Law on Enforcement contained provisions on 
provisional measures.  In respect of infringement of copyright, a court could order provisional seizure or 
prohibit the continued used of the disputed objects or works.  The competent police administration could 
prohibit cultural or artistic performances at the request  of the author or a prof essional association.  The 
financial police could temporarily se ize objects, documentation or financ ial means utilized in a criminal  WT/ACC/SPEC/HRV/6 
 Page 41 
 
 
 or economic offence or infringement.  As a general rule, courts did not have the authority to introduce 
provisional measures inaudita altera parte , but could do so if the rights of the infringed party were 
seriously threatened, and against security for any da mage inflicted on the other party as a result of the 
provisional measure.  In addition, Article 442 of th e Law on Civil Procedure s tipulated that  judicial 
authorities could introdu ce provisional measures inaudita altera parte  for the purpose of eliminating an 
immediate threat of un lawful damage, removing irreparable damage, or to prevent violence. 
 
(c) Administrative proc edures and remedies 
 134. Administrative procedures in the area of i ndustrial property were carried out by the State 
Intellectual Property Office.  An ad ministrative lawsuit against an act of the Office could be initiated 
before the Administrative Court.  The administra tive procedure itself was governed by the Law on 
Industrial Property, the Law on General Administ rative Procedure and the Law on Administrative 
Lawsuits.  
(d) Special border measures 
 135. The representative of Croatia said that Croa tia had recently adopted the Law on the Ratification 
of International Convention on the Harmonization of Bo rder Controls of Goods.  Croatia planned to 
introduce a border control system concerning the infri ngement of intellectual property rights, with due 
consideration to Articles 51 to 60 of the TRIPS Agreement, through the new Customs Law which would 
be in force by June 1999.  (e) Criminal procedures 
 
136. The representative of Croatia said that remedies  - including seizure, forfe iture and destruction of 
the infringing goods - were available in the Penal Law,  notably in Chapters XVII and XXI, as well as in 
the Amended Copyright Law.  The procedural crim inal provisions were contained in the new Law on 
Criminal Procedure in force since January 1998. 
 Policies Affecting Trade in Services  [A note on the trade regime in services has been issued as document WT/ACC /HRV/9.  Information on 
measures affecting trade in services in the format  of document WT/ACC/5 was circulated in document 
WT/ACC/SPEC/HRV/5 on 21 August 1997.  Croatia submitted its initial offer on market access for WT/ACC/SPEC/HRV/6 
Page 42  
 
 trade in services on diskette in May 1997 (docum ent WT/ACC/SPEC/ HRV/4) and a revised offer in 
March 1998 (document WT/ACC /SPEC/HRV/4/Rev.1).]  
 
137. The representative of Croatia said that, as a market-oriented country in transition, Croatia was 
adjusting its legislation acco rding to the principles of liberaliza tion advocated by the WTO.  Accepting 
fully the rules and principles of the General Agr eement on Trade in Services, Croatia was strongly 
committed to the rules preventing discriminatory meas ures and restrictions related to market access and 
national treatment in all modes of supply.  He noted that Croatia w ould seek MFN exemptions in the 
road transport area, [audiovisual services] and concerning acquisiti on of real esta te (reciprocity 
requirement).  These temp orary exemptions would apply to all countries. 
 
138. Regulation of services activ ities was within the competence various institutions, including the 
Ministries of Science and Tec hnology;  Finance, Economy, Mar itime Affairs, Transport and 
Communications;  Health;  Education and Sports;  Ur ban Planning, Cons truction and H ousing;  Labour 
and Social Welfare;  and the Croatian Securities Commission, etc.  Several new laws and amendments 
were in preparation [listed in doc ument WT/ACC/HRV/30, reply 163]. 
 139. The representative of Croatia provided informa tion on the establishment of a bank, branch and 
representative office (cir culated in document WT/A CC/HRV/17 of 29 July 1996) .  Foreign banks were 
admitted in Croatia on the basis of reciprocity.  The reciprocity requirement would be removed, and 
Amendments on the Banking Law had been submitted to Parliament.  The a ppropriate bank licence was 
issued by the National Bank of Croatia.  The mini mum capital requirement for the establishment of a 
bank amounted to DM 5 million in local curren cy, or DM 15 million for banks registered for 
transactions with foreign countri es.  Savings banks could be esta blished with a minimum capital 
equivalent to DM 1 million, but these banks were not allowed to accept deposits from, or extend credits 
to, legal persons or make transactions with forei gn countries.  A representativ e office of a foreign bank 
could only engage in market research, promotion or  representational activitie s.  Regarding brokerages 
and securities houses, fore ign operators would need a local intermediary.  Foreign companies with 
operating presence in Croatia could manage and underwrite share issues , otherwise a local partner would 
be required.  Non-reside nts were not allowed por tfolio investment in short-term securities. 
 140. The insurance sector was governed by the La w on Insurance.  Foreign insurance companies 
were not permitted to operate thr ough subsidiaries in Croatia, but w ould need to establish either a 
wholly-owned or a joint-stock company, only as a subsidiary.  Branching in the insurance industry 
would be allowed for non-residents upon accession to the WTO.  Croatia had introduced certain  WT/ACC/SPEC/HRV/6 
 Page 43 
 
 
 restrictions on cross-border provision of insurance and re-insurance to redu ce capital outflows and 
encourage the development of a domestic insurance market.  Restrictions on modes 1 and 2 in  
reinsurance and retrocession would be removed upon accession to the WTO.  Companies not 
headquartered in Croatia were, for example, only allo wed to provide life and non-life insurance against 
risks not covered by Croatian companies.  
141. The telecommunications sector was currently re gulated by the Ministry of Maritime Affairs, 
Transport and Communications.  Competition was allo wed in all telecommunication services sectors 
except basic services in fixed networks (voice tele phony and telex) and leased lines.  Foreign companies 
could only provide basic telecommuni cation services through, and in ag reement with, Croatian Post and 
Telecommunications (HPT).  Other services, such as mobile telecommunica tion networks, electronic 
mail, on-line information, electronic data interchange and va lue-added services could be provided by a 
Croatian subsidiary operating w ith a concession from the Telecommunications Council.  A Law on 
Croatian Post and Telecommunications, dealing with the separation of postal services and 
telecommunications, was expected to be adopted by the end of 1997.  According to the Law on 
Telecommunication, foreign entities could hold up to 25 per cent of the capital of the radio and 
television concessionaire in radio, tele vision and cable television concessions. 
 142. The State-owned Croatian Ra ilways (HZ) held a monopoly on transportation of passengers and 
goods by rail, but was exposed to heavy competition fro m other modes of carriage, in particular road 
transport.  Foreign companies could provide publ ic transportation through a registered Croatian 
subsidiary licensed by the authorities concerned.  The Maritime Code required foreign-flag carriers 
transporting passengers and goods between Croa tian ports to hold a licence for cabotage. 
 
143. Concerning professional services , he said that legal services a nd legal assistance could only be 
provided by lawyers and lawyers' associations regi stered with the Bar Council of the Republic of 
Croatia.  Registration in the Bar Council required Cr oatian citizenship, a degree from the Faculty of 
Law, passing of the bar examination in Croatia, and high proficiency in the Croa tian language.  Parties 
could be represented by lawyers regi stered in other countries in disput es before select ed (arbitration) 
courts in matters involving international issues.  Consultancy on international and third-country law 
could be provided by foreigners.  Foreign auditing co mpanies – not established in  Croatia - could access 
the Croatian market only in joint operation with a local partner. 
 
144. A new Law on the Tourist Industry had entere d into force at the end of 1996, harmonizing 
Croatian legislation with  regulations applicable in Europe an Communities' countries.  The new WT/ACC/SPEC/HRV/6 
Page 44  
 
 legislation provided a framework for upgrading catering and tourism serv ices in Croatia.  The war had 
affected the tourist industry significantly, and th e Croatian Tourism Associ ation was implementing a 
promotion programme to regain lost markets.  The Government assisted the re vival of the industry by 
allocating about HRK 30 million (US$4.6 million) in its 1997 budget and HRK 30 million in the 1998 
budget for the promotion of tourism (studies of mark ets overseas, participation in international fairs, 
printing of catalogues, etc.), a nd HRK 45 million (US$6.9 million) in 1997 and HRK 43 million in 1998 
in subsidies to air, road and sea transport to prom ote tourist visits, tour ope rators, travel and tourist 
agencies.  A budget allocation of HRK 70 million for the tourism industry was foreseen for 1999. 
 [to be completed]  
Transparency 
 [to be completed]  
Trade Agreements 
 145. The representative of Croatia submitted an  updated list of bilate ral trade and economic 
agreements, and international organizations in which Croatia was participating (circulated in document 
WT/ACC/HRV/6/Rev.1 on 9 October 1996).  The tr ade and economic cooper ation agreements were 
based on the principle of most favour ed nation treatment.  He added th at Croatia was fully committed to 
the MFN principle in market access and in other area s covered by the WTO.  His Government intended 
to conclude free-trade agreements with CEFTA c ountries and in due course join the European 
Communities, and would ensure that any such ag reements would meet th e requirements of GATT 
Article XXIV. 
 146. Trade preferences for goods originating in Tuni sia, Turkey, Uruguay, Spain, Former Yugoslav 
Republic of Macedonia and Slovenia had been abolis hed at the end of 1993.  At present, the only 
preferential trading agreements in force were a Bilateral Agreem ent on Economic Cooperation with the 
Republic of Bosnia and Herzegovina, signed on 24 March 1995, a Free Trade Agreement with the 
Former Yugoslav Republic of M acedonia, and an FTA with the Re public of Slovenia concluded in 
1997.  These FTA's were based on the CEFTA mode l and covered substantia lly all trade between 
Croatia, Slovenia and the Former Yugoslav Republic of Mace donia.  None of these Agreements covered 
trade in services.  Copies of the trade agreements were provided to the Working Party. 
  WT/ACC/SPEC/HRV/6 
 Page 45 
 
 
 147. The Trieste and Gorizia Ag reement of 1955 included provi sions regulating border trade 
between the municipalities of Buje , Novigrad and Umag in Croatia a nd border areas in Slovenia.  The 
exchange of trade was based on indication lists "A" (exports) and "B" (imports),  and duty-free lists "C" 
(exports) and "D" (imports).  Products impor ted under list "D" (reproduced in document 
WT/ACC/HRV/30, pp.78-80) were duty-free provided they were de signated for usage in the border area 
determined by the Trieste Agreement.  Local export-import trad e could be carried out by a company 
located in the border area and registered with the Court register for such activities. 
 Conclusions
 
 148. The Working Party took note of the explanatio ns and statements of Croatia concerning its 
foreign trade regime, as reflected in this report.  The Working Part y took note of the commitments given 
by Croatia in relation to certain specific matters which are repr oduced in paragraphs ….... in this Report.  
The Working Party took note that these commitments had been incorporated in paragraph ... of the 
Protocol of Accession of Croatia to the WTO.  149. Having carried out the examination of the foreign trade regime of Croatia and in the light of the 
explanations, commitments and concessions made by the representative of Croatia, the Working Party 
reached the conclusion that Croatia should be invited to accede to the Marrakesh Agreement 
Establishing the WTO pursuant to the provisions of Ar ticle XII.  For this purpose the Working Party has 
prepared the Draft Decision and Protocol of Access ion reproduced in the Appendix to this report, and 
takes note of Croatia's Schedule of Specific Comm itments on Services (document .....) and its Schedules 
of Concessions and Commitments on Agriculture and Goods (document .....) that are attached to the 
Protocol of Accession.  It is proposed that these texts be approved by the General Council when it 
adopts the Report.  When the Deci sion is adopted, the Protocol of Accession w ould be open for 
acceptance by Croatia which would be come a Member thirty days after it accepts the said Protocol.  The 
Working Party agreed, therefore, that it had comp leted its work concerning the negotiations for the 
accession of Croatia to the Marrakesh  Agreement Establishing the WTO. 
 [to be completed] WT/ACC/SPEC/HRV/6 
Page 46  
 
  
APPENDIX 
 
ACCESSION OF CROATIA
 
 
Draft Decision  
 
 The General Council,   Having regard
 to the results of the negotiations direct ed towards the establishment of the terms 
of accession of the Republic of Croatia to the Marrakesh Agreement Esta blishing the World Trade 
Organization and having prepared a Prot ocol for the Accession of Croatia, 
  Decides
, in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic  of Croatia may accede to the Marrakesh Agreemen t Establishing 
the World Trade Organization on the te rms set out in the said Protocol.  WT/ACC/SPEC/HRV/6 
 Page 47 
 
 
 PROTOCOL OF ACCESSION OF CROATIA 
TO THE MARRAKESH AGREEMENT ESTABLISHING 
 THE WORLD TRADE ORGANIZATION 
DRAFT 
  The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereinafter referred to as "WTO Agreement"), and the Republic of Croatia (hereinafter referred to as "Croatia"),    Taking note
 of the Report of the Working Party on the Accession of Croatia to the WTO in 
document WT/ACC/HRV/.... (hereinafter referr ed to as the "Working Party Report"), 
  Having regard
 to the results of the negotiations on the accession of Croatia to the WTO, 
 
 Agree  as follows: 
  Part I – General 
 
1. Upon entry into force of this Protocol, Cr oatia accedes to the WTO Agreement pursuant to 
Article XII of that Agreement and thereby becomes a Member of the WTO.  2. The WTO Agreement to which Croatia accedes shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal instrume nts as may have entered into force before the date 
of entry into force of this Protocol.  This Protocol , which shall comprise the commitments referred to in 
paragraph ... of the Working Party Report, shall be an integral part of the WTO Agreement. 
 
3. Except as otherwise provided for in the para graphs referred to in paragraph ... of the Working 
Party Report, those obligations in the Multilateral  Trade Agreements annexed to the WTO Agreement 
that are to be implemented over a period of time st arting with the entry into force of that Agreement 
shall be implemented by Croatia as if it had accepted that Agreement on the date of its entry into force. WT/ACC/SPEC/HRV/6 
Page 48  
 
  
4. Croatia may maintain a measure inconsistent with paragraph 1 of Ar ticle II of the GATS 
provided that such a measure is recorded in the list of  Article II Exemptions annexed to this Protocol and 
meets the conditions of the Annex to the GATS on Article II Exemptions.  Part II – Schedules 
 
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and 
Commitments annexed to the Genera l Agreement on Tariffs and Trade 1994 (hereinafter referred to as 
the "GATT 1994") and the Schedule of Specific Co mmitments annexed to th e General Agreement on 
Trade in Services (hereinafter referred to as "GATS") relating to Croatia.  The staging of concessions 
and commitments listed in the Schedules shall be implemented as specified in the relevant parts of the 
respective Schedules.  6. For the purpose of the reference in paragraph 6( a) of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Con cessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
 Part III - Final Provisions 
 
7. This Protocol shall be open for acceptance, by signature or otherwise, by Croatia until ......... 
 8. This Protocol shall enter into force on th e thirtieth day following the day of its acceptance. 
 
9. This Protocol shall be deposited with the Dire ctor-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance 
thereto pursuant to paragraph 7 to each member of the WTO and Croatia. 
 
10. This Protocol shall be regist ered in accordance with  the provisions of Article 102 of the Charter 
of the United Nations.  11. Done at Geneva this ... day of  .... one thous and nine hundred and ninety ........, in a single copy 
in the English, French and Spanish languages each text being authentic, except  that a Schedule annexed 
hereto may specify that it is authentic in  only one or more of these languages.  WT/ACC/SPEC/HRV/6 
 Page 49 
 
 
   
 
ANNEXES 
   
 [to be completed] WT/ACC/SPEC/HRV/6 
Page 50  
 
 ANNEX 1 
 
Laws, regulations and other information provided to the Working Party by Croatia
 
 
- Reasons for requesting developi ng country treatment for the Repu blic of Croatia within the 
WTO; 
- Agricultural Strategy of the Republic of Croatia; - Transformation of Socially-Owned Enterprises Act; 
- The Privatization Act of 1 March 1996; 
- Annual Report of the Croatian  Privatization Fund for 1994; 
- Financial Statements of the Croati an Privatization Fund for 1993 and 1994; 
- Law on Trade; - The Croatian Company Law; 
- The Croatian Customs Law; 
- The Croatian Customs Service Act; - The Croatian Free Zones Act; - Export/Import Quotas for the Years 1991, 1992 and 1993; - Export/Import Quotas  for the Year 1995; 
- Export/Import Quotas for 1996; 
- List of Goods Imported and Expor ted on the Basis of 1995 Licences; 
- Export/Import Licences in 1996; - Decision on Determining the Goods Expo rted on Basis of Quota of 12 July 1996; 
- War Damage to the Agricultural Se ctor of the Republic of Croatia; 
- Basic Data on the Fishing Sect or of the Republic of Croatia; 
- The Standardization Act of 2 July 1996; 
- State Office for Standardization and Metrology:  Rules for Preparation, Adopting and Issuing of 
Croatian Standards; 
- List of Croatian Standards; - Products Subject to Quality Control on Imports (HS Numbers); - Decision on Amounts to be Paid for Covering the Costs of Quality Control of Products Upon 
Export and Import; 
- Decision on Amounts to be Paid for Covering the Costs of Quality Control of Products Upon 
Export and Import of 23 May 1995; 
- Regulation on Phytosanitary Insp ection of Plants and Control of Plant Protection Products in the 
National Cross-Boundary Transportation; 
- List of Quarantine Plant Pests; 
- Norms for the Establishment of Health Conditions of Crops, Nurseries, Seed and Planting 
Material; 
- List of Protection Measures on Agricultural and Food Products; 
- The Croatian Banking Act; - Law Amending the Law on Banks and Savi ngs Banks (Official Gazette No.89 of 
30 June 1998); 
- Credit Relations with Foreign Countries Act; 
- Insurance Law; - Law on Insurance and Sale of Securities of 1 January 1996; 
- Decision Promulgating the Law on I nvestment Funds of 14 December 1995; 
- Law on Telecommunications; 
- List of Public Enterprises; - Electric Power Supply Act with Explan ations and Restructuring Programme; 
- Restructuring Programme and th e new Croatian Railways Act; 
- Tax System of the Republic of Croatia:  Profit Tax Act, Income  Tax Act and VAT Act;  WT/ACC/SPEC/HRV/6 
 Page 51 
 
 
 - Decree on Procurement of Goods, Works and Services; 
- Law on Procurement of Go ods, Services and Works; 
- The Croatian Competition Protection Act; - Statute of the Republic of Croatia on the Cond itions and Method of Determining Tariff Bases; 
- The Agreement on the Economic Co-operation between the Government of the Republic of 
Croatia and the Government of the Republic and Federation of Bosnia and Herzegovina; 
- Free Trade Agreement between the Republic of Croatia and th e Former Yugoslav Republic of 
Macedonia; 
- Free Trade Agreement between the Republic of Croatia and the Republic of Slovenia; - Diskette containing the new customs tariff (in force as from 1 July 1996); 
- The Law on the Foreign Exchange System, Foreign Exchange Operations and Gold 
Transactions; 
- Decision Promulgating the Law on Exceptional Me asures of Price Controls of 8 July 1997; 
- Decision on the Compulsory Reporting of Price Lists and Tariffs of Certain Legal Persons; 
- Order on Identifying Products Requiring Reporti ng of Prices and Margins for the Purpose of 
Control; 
- Decision on Compulsory Reporting of the Pri ce Lists or Tariffs of Certain Products and 
Services; 
- Order on Identifying the Products and Services  Requiring the Reporting of Price Lists of 
Tariffs; 
- Tender Documentation for the Purchase of Joint Stock Companies; 
- World Bank Project Portfolio in Croatia; 
 
 
[to be completed] WT/ACC/SPEC/HRV/6 
Page 52  
 
 Table 2
 
 
Products Subject to Import Licensing1 
 
HS code Produce description Licensing authority 
26.12  Uranium or thorium ores and concentrates 
 2612.10 Uranium ores and concentrates 
 2612.20 Thorium ores and concentrates 
28.44  Radioactive chemical elements and radioactive 
isotopes (including the fiss ile or fertile chemical 
elements and isotopes) and their compounds;  
mixture and residues containing those products: 
 2844.10 - Natural uranium and its compounds:  alloys, 
dispersions (including  cermets), ceramic 
products and mixtures c ontaining these products 
 2844.20 - Uranium enriched in U 235 and its compounds;  
plutonium and its compounds;  alloys, 
dispersions (including  cermets), ceramic 
products and mixtures containing uranium enriched U 235, plutonium or compounds of these products 
 2844.30 - Uranium depleted in  U 235 and its compounds; 
alloys, dispersions (inc luding cermets), ceramic 
products and mixtures containing uranium depleted in U 235, thor ium or compounds of 
these products 
 2844.50 - Spent (irradiated) fuel  elements (cartridges) of 
nuclear reactors 
28.45  Isotopes other than those of heading No.2844;  
compounds, inorganic or organic, of such 
isotopes, whether or not  chemically defined 
 2845.10 - Heavy water (deuterium oxide) 
29.04  Sulphonated, nitrated or  nitrated derivatives of 
hydrocarbons, whether or not halogenated 
 2904.201 --- Nitrobenzene 
 2904.202 --- Dinitrobenzene 
 2904.203 --- Di and trinitrotoluene 
29.20  Esters of other inorga nic acids (excluding esters 
of hydrogen halide) and their salts;  their halogenated, sulphonated, nitrated or nitrosalted 
derivatives: 
 2920.90 - Other: 
 2920.9003 ---- Nitroglycerin 
 2920.9004 ---- Other esters of nitrate acid  
 
 
 
 
 
 
 
 
 
 
 
Ministry of Economy 
                                                      
1 In addition, Coraita applies licensing to narc otics and substances damaging the ozone layer  WT/ACC/SPEC/HRV/6 
 Page 53 
 
 
 HS code Produce description Licensing authority 
 2920.9006 ---- Salts from other acids Ministry of Economy 
30.01  Glands and other orga ns for organo-therapeutic 
uses, dried, whether or not powdered;  extracts 
of glands or other organs or of their secretions for organo-therapeutic uses;  heparin and its salts;  other human or animal substances 
prepared for ther apeutic or prophylactic uses, not 
elsewhere specified or included 
 3001.10 - Glands and other orga ns, dried, whether or not 
powdered 
 3001.90 - Other 
 3001.909 --- Other 
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 
 3002.10 - Antisera and other blood fractions and 
modified immunological products, whether or 
not obtained by means of biotechnological processes 
 3002.20 - Vaccines for human medicine 
 3002.30 - Vaccines for veterinary medicine 
 3002.90 - Other 
 3002.909 --- Other 
30.03  Medicaments (excluding goods of heading 
No.3002, 3005 or 3006) consisting of two or more constituents which have been mixed 
together for therapeutic or prophylactic uses, not 
put up in measured doses or  in forms or packings 
for retail sale: 
 3003.10 - Containing penicillin  or derivatives thereof, 
with a penicillanic acid structure, or streptomycin or their derivatives 
 3003.20 - Containing other antibiotics 
 3003.201 --- Containing rolitetracyclin 
 3003.209 --- Other 
 3003.30 - Containing hormones or other products of 
heading No.2937 but not containing antibiotics 
 3003.31 -- Containing insulin 
 3003.39 -- Other  
 
 
 
 
 
 
 
 
  
 
Ministry of Health or 
Ministry of Agriculture and 
Forestry 
 WT/ACC/SPEC/HRV/6 
Page 54  
 
 HS code Produce description Licensing authority 
 3003.40 - Containing alkaloids or derivatives thereof but 
not containing hormones or other products of 
heading No.2937 or antibiotics 
 3003.90 - Other 
 3003.901 Polimaltic complex with iron (III) hydroxide 
 3003.902 --- Saccharine complex with iron (III) hydroxide 
 3003.909 --- Other 
30.04  Medicaments (excluding goods of heading 
No.3002, 3005 or 3006) 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  or derivatives thereof, 
with a penicillanic acid structure, or streptomycin or their derivatives: 
 3004.101 --- Ready made medicam ents for retail sale 
 3004.109 --- Medicaments in doses in bulk 
 3004.20 - Containing other antibiotics 
 3004.201 --- Ready made medicam ents for retail sale 
 3004.209 --- Medicaments in doses in bulk 
 3004.3 - Containing hormones or other products of 
heading No.2937 but not containing antibiotics 
 3004.31 -- Containing insulin 
 3004.301 --- Ready made medicam ents for retail sale 
 3004.319 --- Medicaments in doses in bulk 
 3004.32 -- Containing adrenal cortical hormones 
 3004.321 
 --- Ready made medicaments for retail sale 
 3004.329 --- Medicaments in doses in bulk 
 3004.39 -- Other 
 3004.391 --- Ready made medicam ents for retail sale 
 3004.399 --- Medicaments in doses in bulk 
 3004.40 - Containing alkaloids or derivatives thereof but 
not containing hormones,  other products of 
heading No.2937 or antibiotics 
 3004.401 --- Ready made medicaments for retail use 
 3004.402 --- Oncovin doses in bulk 
 3004.409 --- Other medicaments in doses in bulk 
 3004.50 - Other medicaments containing vitamins or 
other products of heading No.2936 
 3004.501 --- Ready made medicam ents for retail sale 
 3004.509 --- medicaments in doses in bulk " 
 
 
 
 
 
 
 
 
  
 
 
 
Ministry of Health or 
Ministry of Agriculture and 
Forestry  WT/ACC/SPEC/HRV/6 
 Page 55 
 
 
 HS code Produce description Licensing authority 
 3004.90 - Other 
 3004.902 --- Other medicamen ts for retail sale 
 3004.903 --- Medicaments in doses in bulk 
 3004.909 --- Other 
30.06  Pharmaceutical goods specified in note $ to this 
chapter 
 3006.20 - Blood grouping reagents 
 3006.30 - Opacifying preparations for x-ray 
examinations; diagnostic reagents designed to be administered to the patient 
 3006.60 - Chemical contraceptive preparations based on 
hormones or spermicides 
    
 
 
 
 
Ministry of Health or 
Ministry of Agriculture and 
Forestry 
36.01 3601.00 Propellant powders 
 3601.001 --- Propellant powders with no smoke 
 3601.002 --- Black propellant powder for hunters 
 3601.003 --- Black propellant powder for miners 
 3601.009 --- Other Black propellant powder 
36.02 3602.00 Prepared explosive, other than propellant 
powders 
 3602.001 --- On the basis of ammonium nitrate 
 3602.002 --- On the basis of chlorate and perchlorate 
 3602.003 --- On the basis of nitroglycerine 
 3602.004 --- On the basis of nitrate esters 
 3602.009 --- Others 
36.03 3603.00 Safety fuses; detonating fuses; percussion or 
detonating caps; igniters;  electric detonators: 
 3603.001 --- Detonating fuses 
 3603.002 --- Safety fuses 
 3603.003 --- Caps 
 3603.004 --- Igniters 
 3603.009 --- Detonators 
36.04  Fireworks, signalling flares, rain rockets, fog 
signals and other pyrotechnic articles 
 3604.90 - Other 
 3604.901 --- Rain rockets  
 
 
 
 
 
 
 
 
 
 
Ministry of Economy WT/ACC/SPEC/HRV/6 
Page 56  
 
 HS code Produce description Licensing authority 
44.16 4416.00 Casks, barrels, vats, tubs and other coopers' 
products and parts thereof, of wood, including 
staves 
 4416.009 --- Other State Bureau of Standards 
and Measurements 
48.08  Paper and paperboard, corrugated (with or 
without glued flat surf ace 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 
48.19  Cartons, boxes, cases, bags and other packing 
containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres;  box files, 
letter trays, and simila r 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 
49.07 4907.00 Unused postage, reve nue or similar stamps of 
current or new issue in the country to which they 
are destined;  stamp-impressed paper;  
banknotes;  cheque forms;  stock;  share or bond 
certificates and similar documents of title: 
 4907.002 --- Securities (stocks,cheque forms, etc.) 
 4907.003 --- Banknotes which are not legal tender in any 
country 
 4907.009 --- Other  
 
 
 
 
 
 
 
 
Ministry of Economy 
 
70.17  Laboratory, hygienic or pharmaceutical 
glassware, whether or not graduated or 
calibrated 
 7017.10 - Of fused quartz or other fused silica 
 7017.20 - Of other glass havi ng a linear coefficient of 
expansion not exceeding 5x10 -6 per Kelvin 
within a temperature range of 0 °c to 300°c 
 7017.90 - Other  
 
 
State Bureau of Standards 
and Measurements 
71.08  Gold (including gold plated with platinum) 
unwrought or in semi-manuf actured forms, or in 
powder form: 
 7108.1 - Non-monetary 
 7108.11 --- Powder 
 7108.12 --- Unwrought 
 7108.13 -- Semi-manufactured 
 7108.20 - Monetary 
71.18  Coin  
 
 
Ministry of Economy  WT/ACC/SPEC/HRV/6 
 Page 57 
 
 
 HS code Produce description Licensing authority 
 7118.10 - Coin (other than gold coin), not being legal 
tender  
 7118.90 - Other 
73.04  Tubes, pipes and hollow profiles, seamless, of 
iron (other than case iron) or steel 
 7304.10 Line pipe of a kind used for oil or gas pipelines 
 7304.29  
 7304.292 --- Protection pipes of other steel or an external 
diameter not exceeding 16" 
 7304.295 --- Other tubes for manufacture, of other steel 
 7304.299 --- Other 
 7304.31  
 7304.311 --- Precision cold-drawn tubes 
 7304.319 --- Other 
 7304.39 -- 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 Protection tubes ("casing"), production tubes 
("tubing") of a kind used in drilling for oil or gas
 7306.201 --- Protection tubes of an external diameter not 
exceeding 16" 
 7306.202 --- Production pipes of external diameter not 
exceeding 3 1/2 
 7306.209 - Other 
 7306.30 Other, welded, of circ ular cross-section, of iron 
or non-alloy steel 
 7306.50 - Other, welded, of circular cross-section of 
other alloy steel 
 7306.60  
 7306.601 --- Of iron and analloyed steel of square average 
diameter of maximal dimension 70 x 70mm, 
rectangular average of maximal dimension 80 x 
60mm 
84.01  Nuclear reactors;  fuel elements (cartridges), 
non-irradiated, for nuclear reactors, machinery 
and apparatus for isotopic separation: 
 8401.10 - Nuclear reactors 
 8401.20 Machinery and apparatus for isotopic separation, 
and their parts  
 8401.30 - Fuel elements (c artridges), non-irradiated 
 8401.40 - Parts of nuclear reactor  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Ministry of Economy WT/ACC/SPEC/HRV/6 
Page 58  
 
 HS code Produce description Licensing authority 
84.13  Pumps for liquids, whether or not fitted with a 
measuring device;  liquid elevators 
 8413.1 - Pumps fitted or designed to be fitted with a 
measuring device 
 8413.11 -- Pumps for dispersing fuel or lubricants, of the 
type used in filling-stations or in garages 
84.22  Dishwashing machines;  machinery for cleaning 
or drying bottles or other containers; machinery 
for filling, closing, sealing or labelling bottles, 
cans, boxes, bags or other containers;  other packing or wrapping machinery (including heat-shrink wrapping machinery); machinery for aerating beverages;  
 8422.30 - Machinery for filling, closing, sealing or 
labelling bottles, cans, boxes, bags or other 
containers;  machinery fo r capsuling bottles, jars, 
tubes and similar containers;  machinery for aerating beverages 
84.23  Weighing machinery (excluding balances of a 
sensitivity of 5cg or be tter) including weight 
operated counting or checking machines; 
weighing machine weights of all kinds 
 8423.10 - Personal weighing machines, including baby 
scales;  household scales 
 8423.20 - Scales for continuous weighing of goods on 
conveyors 
 8423.30 - Constant weight scales and scales for 
discharging a predetermine d weight of material 
into a bag or container, including hopper scale 
 8423.8 - Other 
 8423.81 -- Having a maximum weighing capacity not 
exceeding 30kg. 
 8423.82 -- Having a maximum weighing capacity 
exceeding 30kg but not exceeding 5,000kg 
 8423.89 -- Other 
 8423.891 --- Weighbridge (railway and road) 
 8423.899 --- Other 
 8423.90 - Weighing machine weights of all kinds;  parts 
of weighing machinery 
 8423.901 --- Weight 
 8423.909 --- Parts  
 
 
 
 
 
 
 
 
  
 
 
 
 
State Bureau of Standards 
and Measurements 
84.33  Harvesting or threshing machinery, including 
straw or fodder balers;  grass or hay mowers: Ministry of Economy  WT/ACC/SPEC/HRV/6 
 Page 59 
 
 
 HS code Produce description Licensing authority 
 8433.5 - Other machinery for harvesting agricultural 
products (harvest, pick-up, etc.) machines for 
sorting 
 8433.51 --- Combine harvester-threshers 
 8433.511 --- For grain and corn 
 8433.5112 --- Power over 45 up to 167kw 
85.25  Transmission apparatus for radio-telephony, 
radio-telegraphy, ra dio-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 
 8525.191 - Radio transmission 
 8525.109 -- Other 
 8525.20 - Transmission apparatus incorporating reception 
apparatus 
 8525.201 - Repeater for radio 
 8525.209 -- Other 
85.26  Radio apparatus, radio navigational aid 
apparatus and radio remote control apparatus 
 8526.10 - Radar apparatus 
 8526.91 - Radio navigational apparatus 
 8526.92 - Radio remote control apparatus 
87.01  Tractors (other than tractors of heading 
No.8709) 
 8701.90 - Other 
 8701.9021 ---- Over 5 years old  
 
 
 
 
 
 
 
 
  
 
 
 
Ministry of Economy 
87.10 8710.00 Tanks and other ar moured fighting vehicles, 
motorised, whether or not  fitted with weapons 
and parts of such vehicles 
89.06 8906.00 Other vessels, incl uding warships and lifeboats 
other than rowing boats: 
 8906.001 --- Warships of all sorts  
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior WT/ACC/SPEC/HRV/6 
Page 60  
 
 HS code Produce description Licensing authority 
90.15  Surveying (including photogrammetrical 
surveying), hydrographic, oceanographic, 
hydrological, meteorological or geophysical instruments and appliances, excluding compasses;  rangefinders 
 9015.10 - Rangefinders 
 9015.20 - Theodolites and tacheometers 
 9015.30 - Levels 
 9015.40 - Photogrammetrical, surveying instruments and 
appliances 
 9015.80 - Other instruments and appliances 
 9015.801 --- For petroleum and gas expolations, 
electronics 
 9015.809 --- Other  
 
 
 
 
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
90.18  Instruments and applia nces used in medical, 
surgical, dental or veterinary sciences, including scintigraphic apparatus, other electromedical apparatus and sight testing instruments 
 9018.90 - Other apparatus and instruments 
 9018.901 --- Apparatus for dialysis  
 
State Bureau of Standards 
and Measurements  WT/ACC/SPEC/HRV/6 
 Page 61 
 
 
 HS code Produce description Licensing authority 
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, callipers), not specified or included elsewhere in this chapter: 
 9017.30 - Micrometers, callipers and gauges 
 9017.309 --- Other 
 9017.80 - Other instruments 
90.18  Instruments and applia nces used in medical, 
surgical, dental or veterinary sciences, including scintigraphic apparatus, other electromedical 
apparatus and sight testing instruments 
 9018.3 - Syringes, needles, catheters, cannulae and the 
like 
 9018.31 -- Syringes, with or without needles 
90.24  Machines and appliances for testing the 
hardness, strength, compre ssibility, elasticity or 
other mechanical propert ies of materials (for 
example, metals, wood, textiles, paper and 
plastics) 
 9024.10 -- Machines and applia nces for testing metals 
 
 9024.80 - Other machines and appliances 
90.25  Hydrometers, and simi lar floating instruments, 
thermometers, pyrometers, barometers, 
hygrometers and psychrom eters, recording or 
not, and any combination of these instruments 
 9025.1 - Thermometers and pyrometers, not combined 
with other instruments 
 9025.11 -- Liquid-filled or direct reading 
 9025.19 -- Other 
 9025.80 Other instruments 
90.26  Instruments and apparatus for measuring or 
checking the flow, level, pressure or other variables of liquids or gases (for example, flow 
meters, level gauges, manometers, heat meters), 
excluding instruments and apparatus of heading Nos.9014, 9015, 9028 or 9032: 
 9026.10 - For measuring or checking the flow or level of 
liquids: 
 9026.101 --- Electronic 
 9026.102 --- Electric  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
State Bureau of Standards 
and Measurements WT/ACC/SPEC/HRV/6 
Page 62  
 
 HS code Produce description Licensing authority 
 9026.109 --- Other 
 9026.20 - For measuring or checking pressure: 
 9026.201 --- Electronic 
 9026.202 --- Electric 
 9026.203 --- Manometers (non-el ectronic, non-electric) 
 9026.209 --- Other 
 9026.80 - Other instruments or apparatus: 
 9026.801 --- Electronic 
 9026.802 --- Electric 
 9026.803 --- Flow meters of gases (non-electronic and 
non-electric) 
90.27  Instruments and apparatus for physical or 
chemical analysis (for example, polarimeters, refactometers, spectrometers, gas or smoke 
analysis apparatus); instruments and apparatus 
for measuring or checking viscosity, porosity, expansion, surface tension or the like;  instruments and apparatus for measuring or checking quantities of hear, sound or light (including exposure meters); microtomes: 
 9027.10 - Gas and smoke analysis apparatus: 
 9027.101 --- Electronic 
 
 9027.102 --- Electric 
 9027.109 --- Other 
90.28  Gas, liquid or electricity supply or production 
meters, including calibrating meters therefore: 
 9028.10 - Gas meters 
 9028.20 - Liquid meters 
 9028.201 --- For fuel 
 9028.202 --- Water meters 
 9028.209 --- Other 
 9028.30 - Electricity meters 
90.29  Revolution counter s, production counters, 
taximeters, mileometers,  pedometers and the 
like;  speed indicators and tachometers, other than those of heading Nos. 9014 or 9015; stroboscopes 
 9029.10 - Revolution counter s, production counters, 
taximeters, mileometers,  pedometers and the 
like: 
 9029.101 --- Electronic 
 9029.102 --- Electric  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
State Bureau of Standards  
and Measurements  WT/ACC/SPEC/HRV/6 
 Page 63 
 
 
 HS code Produce description Licensing authority 
 9029.109 --- Other 
90.30  Oscilloscopes, spectrum analyzers and other 
instruments and apparatus for measuring or 
checking electrical quantities, excluding meters of heading No.9028; instruments and apparatus for measuring or detecti ng alpha, beta gamma, x-
ray, cosmic or other ionising radiations: 
 9030.10 - Instruments and apparatus for measuring or 
detecting ionising radiations; 
 9030.40 - Other instruments and apparatus, specially 
designed for telecommunications (for example, 
cross-talk meters, gain measuring instruments, distortion factor mete rs, psophometers): 
 9030.401 --- Electronic 
 9030.409 --- Other 
 9030.8 - Other instruments and apparatus 
 9030.82 -- For measuring or checking semi-conductor 
wafers or devices 
 9030.83 -- Other, with a recording device: 
 9030.831 --- Electronic 
 9030.839 -- Other 
 9030.891 --- Electronic 
 9030.899 --- Other 
90.31  Measuring or checking instruments, appliances 
and machines, not specified or included 
elsewhere in this chapter; profile projectors: 
 9031.20 - Test benches 
 9031.209 --- Other 
91.01  Wrist-watches, po cket-watches and other 
watches, including stop-w atches, with case of 
precious metal or of metal clad with precious 
metal: 
 9101.9 - Other 
 9101.91 -- Electrically operated 
 9101.911 --- Stop-watches 
 9101.99 -- Other 
 9101.991 --- Stop-watches 
 9107.009 ---- Other 
91.02  Wrist-watches, po cket-watches and other 
watches, including stop-watches, other than those of heading No.9101 
 9102.9 - Other 
 9102.91 - Electric ally operated  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
State Bureau of Standards  
and Measurements WT/ACC/SPEC/HRV/6 
Page 64  
 
 HS code Produce description Licensing authority 
 9102.911 --- Stop-watches 
 9102.99 --- Other 
 9102.991 --- Stop-watches 
91.06  Time of day recordin g apparatus and apparatus 
for measuring, recording or otherwise indicating 
intervals of time, with clock or watches movement or with synchronous motor (for example, time-registers, time-recorders): 
 9106.10 - Time-registers ;  time-recorders 
 9106.20 - Parking meters 
91.07 9107.00 Time switches, with  clock or watch movement 
or with synchronous motor  
 
 
 
State Bureau of Standards  
and Measurements 
93.01 9301.00 Military weapons, othe r than revolvers, pistols 
and the arms of heading No.9307 
93.02 9302.00 Revolvers and pistol s, other than those of 
heading No.9303 or 9304 
93.03  Other firearms a nd similar devices which 
operate by firing of an explosive charge (for example, sporting shotguns and rifles, muzzle-
loading firearms, very pi stols and other devices 
designed to project only signal flares, pistols and 
revolvers for firing blank ammunition, captive-bolt humane killers, line-throwing guns): 
 9303.10 - Muzzle-loading firearms 
 9303.20 - Other sporting, hunting or target-shooting 
shotguns, including combination shotgun-rifles: 
 9303.30 - Other sporting hunting or target-shooting rifles 
 9303.90 - Other 
 9303.901 --- Starting rifles 
 9303.909 --- Other 
93.04 9304.00 Other arms (for example, spring, air or gas guns 
and pistols, truncheons ), excluding those of 
heading No.9307 
 9304.001 --- Shotguns for spear-fishing 
 9304.009 --- Other 
93.05  Parts and accessories of articles of heading 
Nos.9302 to 9304 
 9305.10 -- Of revolvers or pistols 
 9305.101 --- Shotguns for spear-fishing 
 9305-109 --- Other 
 9305.2 - For rifled barrels,  hunting and sporting rifles 
from heading No.9303 
 9305.21 --- Tubes for rifle barrels  
 
 
 
 
 
 
  
 
 
 
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior  WT/ACC/SPEC/HRV/6 
 Page 65 
 
 
 HS code Produce description Licensing authority 
 9305.29 -- Other 
 9305.90 - Other 
 9305.901 --- Products from heading No. 9301 
 9305.909 --- Other 
93.06  Bombs, grenades, torp edoes, mines, missiles and 
similar munitions of war and parts thereof;  
cartridges and other amm unition and projectiles 
and parts thereof, includi ng shot and cartridge 
wads: 
 9306.10 - Cartridges for riveti ng or similar tools or for 
captive-bolt humane killers and parts thereof 
 9306.2 - Cartridges for rifled  barrels and their parts; 
cartridges for air guns 
 9306.21 --- Patrons 
 9306.29 -- Other 
 9306.30 - Other cartridges and parts thereof 
 9306.90 - Other 
93.07 9307.00 Swords, cutlasses, ba yonets, lances and similar 
arms and parts thereof and scabbards and sheaths thereof  
 
 
 
 
 
 
 
 
 
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior WT/ACC/SPEC/HRV/6 
Page 66  
 
 Table 3
 
 
Products Subject to Export Quotas  
 
HS code Product description 
01.02  Live bovine animals: 
 0102.90 ----- Other; 
 0102.904 ----------Heifers, of a weight exceeding 200kg but not exceeding 320kg 
 0102.907 ----------Calves 
05.08 0508.00 Coral and similar materials, unwork ed or simply prepared but not otherwise 
worked;  shells of molluscs, crus taceans or echinoderms and cuttlebone, 
unworked or simply prepared but not cu t to shape, powder and waste thereof 
10.05  Maize (corn) 
27.09 2709.00 Petroleum oils and oils obtai ned from bituminous minerals, crude: 
 2709.001 ----- Petroleum oils 
27.11  Petroleum gases and other gaseous hydrocarbons: 
 2711.2 - In gaseous state; 
 2711.21 -- Natural gas 
41.01  Raw hides and skins of bovine or equine  animals (fresh, or sa lted, dried, limed, 
pickled or otherwis e preserved, but not tanned, parchment-dressed or further 
prepared), whether or not dehaired or split. 
41.02  Raw skins of sheep or lambs (fresh, or salted, dried, limed, pickled or otherwise 
preserved, but not tanned, parchment-dre ssed or further prepared), whether or 
not with wool on or split, other than those excluded by note 1(c) to this chapter; 
41.04  Leather of bovine or equine animals,  without hair on, other than leather of 
heading No.41.08 or 41.09; 
44.01  Fuel wood, in logs, in bullets, in twig s, in faggots or in similar forms;  wood in 
chips or particles;  sawdust and wo od waste and scrap , whether or not 
agglomerated in logs, briquettes, pellets or similar forms: 
 4401.10 - Fuel wood, in logs, in bullets, in  twigs, in faggots or  in similar forms. 
44.03  Wood in the rough, whether or not st ripped of bark or sapwood, or roughly 
squared:  
 4403.10 - Treated with paint, stains , creosote or ot her preservatives 
 4403.20 - Other, coniferous: 
 4403.201 --- Exotic coniferous 
 4403.202 --- Poles for splitting and for veneering from other coniferous wood 
 4403.203 --- Cellulose 
 4403.204 --- Poles for wires, not impregnated 
 4403.209 --- Other 
 4403.9 - Other 
 4403.91 -- Of oak (Quercus spp.) 
 4403.911 ---Poles for splitting and for veneering 
 4403.912 --- Cellulose  WT/ACC/SPEC/HRV/6 
 Page 67 
 
 
 HS code Product description 
 4403.919 --- Other 
 4403.92 -- Of beech (Fagus spp.) 
 4403.921 --- For splitting and for veneering 
 4403.922 --- Cellulose 
 4403.929 --- Other 
 4403.99 --- Other: 
 4403.991 --- Poles for splitting and for veneer ing of other hard non-coniferous 
 4403.9911 --- Poles for splitting and walnut tree veneer 
 4403.9919 --- Other 
 4403.992 --- Cellulose tree from other hard non-coniferous 
 4403.993 --- Poles for splitting and for veneering for poplar 
 4403.994 --- Cellulose wood of poplar 
 4403.995 --- Poles for splitting and for veneer ing of other soft non-coniferous 
 4403.996 --- Cellulose wood of other soft non-coniferous 
 4403.999 --- Other 
4707  Recovered (waste and scrap) paper or paperboard 
 4707.10 - Unbleached kraft paper or paperboa rd or corrugated paper or paperboard 
 4707.20 - Other paper or paperboard made  mainly or bleached chemical pulp not 
coloured in the mass 
 4707.30 - Paper or paperboard made main ly of mechanical pulp (for example, 
newspapers, journa ls and similar printed material) 
 4707.301 --- Old and unsold newspapers 
 4707.90 - Other, including unsorted waste and scrap 
70.01 7001.00 Cullet and other waste and scrap glass;  glass in the mass: 
 7001.002 --- Other glass in the mass 
 
 WT/ACC/SPEC/HRV/6 
Page 68  
 
 Table 4
 
 
Products Subject to Export Licences2 
  
HS code Product description Licensing authority 
28.44  Radioactive chemical  element and radioactive 
isotopes (including the fiss ile or fertile chemical 
elements and isotopes) and other compounds;  
mixtures and residues containing those products: 
 2844.10 - Natural uranium and its compounds:  alloys, 
dispersions (including ce rmets), ceramic products 
and mixture containing natural uranium or natural uranium compounds; 
 2844.20 - Uranium enriched in U 235 and its compound;  
plutonium and its compounds;  alloys, 
dispersions (including ce rmets), ceramic products 
and mixtures containing uranium enriched U 235, plutonium or compounds of these products; 
 2844.30 - Uranium depleted in  U 235 and its compounds, 
thorium and its compounds;  alloys, dispersions (including cermets) ceramic products and 
mixtures containing uranium depleted in U 235, 
thorium or compounds of these products 
 2844.50 - Spent (irradiated) fuel  elements (cartridges) of 
nuclear reactor 
28.45  Isotopes other than those of heading No.2844;  
compounds, inorganic or organic, of such isotopes, whether or not  chemically defined 
 2845.10 - Heavy water (deuterium oxide) 
29.04  Sulphonated, nitrated or  nitrated derivatives of 
hydrocarbons, whether or not halogenated 
 2904.201 --- Nitrobenzene 
 2904.202 --- Dinitrobenzene 
 2904.203 --- Di and trinitrotoluene 
2920  Esters of other inorga nic acids (excluding esters 
of hydrogen halide) and their salts;  their 
halogenated, sulphonated, nitrated or nitrosalted 
derivatives: 
 2920.90 Other: 
 2920.9003 Nitroglycerin 
 2920.9004 Other esters of .... acids  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ministry of Economy 
                                                      
2 In addition, Coraita applies licensing to narc otics and substances damaging the ozone layer  WT/ACC/SPEC/HRV/6 
 Page 69 
 
 
 HS code Product description Licensing authority 
49.07 4907.00 Unused postage, revenue or similar stamps of 
current or new issue in the country to which they are destined;  stamp-impr essed paper;  banknotes;  
cheque forms;  stock;  share or bond certificates 
and similar documents of title: 
 
 4907.002 --- Securities (actio ns, cheque books, etc.) 
 4907.003 --- Banknotes which are not legal means of 
payment in any of the countries 
 4907.009 --- Other 
71.08  Gold including gold plated with platinum 
unwrought semi-manufactu red forms, or in 
powder form: 
 7108.1 - Non-monetary 
 7108.11 --- Powder 
 7108.12 --- Other unwrought forms 
 7108.13 -- Other semi-manufactured forms: 
 7108.20 - Monetary 
71.09 7109.00 Base metals or silver , clad with gold, not further 
worked than semi-manufactured 
71.10  Platinum, unwrought or in semi-manufactured 
forms, or in powder form 
 7110.1 Platinum 
 7120.11 Unwrought or in powder form 
 7110.19 -- Other 
 7110.2 Palladium 
 7110.21 -- Unwrought or in powder form 
 7110.29 -- Other 
 7110.3 Rhodium 
 7110.31 - Unwrought or in powder form 
 7110.39 -- Other 
 7110.4 Iridium, osmium and ruthenium 
 7110.41 -- Unwrought or in powder form 
 7110.49 -- Other 
71.11 7111.00 Base metals, silver or  gold, clad with platinum, 
not further worked than semi-manufactured 
71.18  Coin 
 7118.10 - Coin (other than gold coin), not being legal 
tender  
 7118.90 - Other  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
Ministry of Economy WT/ACC/SPEC/HRV/6 
Page 70  
 
 HS code Product description Licensing authority 
84.01  Nuclear reactors;  fuel  elements (cartridges), non-
irradiated, for nuclear reactors, machinery and apparatus for isotopic separation: 
 8401.10 - Nuclear reactors 
 8401.20 Machinery and apparatu s for isotopic separation, 
and parts thereof 
 8401.30- Fuel elements (c artridges), non-irradiated 
 8401.40 Parts of nuclear reactor 
87.10 8710.00 Tanks and other ar moured fighting vehicles, 
motorised, whether or not  fitted with weapons 
and parts of such vehicles 
89.06 8906.00 Other vessels, including warships and lifeboats 
other than rowing boats: 
 8906.001 --- Warships of all sorts 
93.01 9301.00 Military weapons, other than revolvers, pistols 
and the arms of heading No.9307 
93.02 9302.00 Revolvers and pistols, other than those of 
heading No.9303 or 9304 
93.03  Other firearms and si milar devices which operate 
by firing of an explosive charge (for example, 
sporting shotguns and ri fles, muzzle-loading 
firearms, very pistols and other devices designed 
to project only signal flar es, pistols and revolvers 
for firing blank ammunition, captive-bolt humane killers, line-throwing guns): 
 9303.10 - Muzzle-loading firearms 
93.05  Parts and accessories of articles of heading 
Nos.9301 to 9394 
 9305.10 -- Of revolvers or pistols 
 9305.101 --- Shotguns for spear-fishing 
 9305-109 --- Other 
 9305.90 - Other 
 9305.901 --- Products falling within heading No. 9301 
 9305.909 --- Other 
93.06  Bombs, grenades, torped oes, mines, missiles and 
similar munitions of wa s and parts thereof;  
cartridges and other ammunition and projectiles 
and parts thereof, includ ing shot and cartridge 
wads: 
 9306.10 - Cartridges for riveting or similar tools or for 
captive-bolt humane killers and parts thereof 
 9306.2 Cartridges for shotguns an d parts thereof;  air gun 
pellets 
 9306.21 --- Cartridges  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior  WT/ACC/SPEC/HRV/6 
 Page 71 
 
 
 HS code Product description Licensing authority 
 9306.29 -- Other 
 9306.30 - Other cartridges and parts thereof 
 9306.90 - Other 
93.07 9307.00 Swords, cutlasses, ba yonets, lances and similar 
arms and parts thereof and scabbards and sheaths 
thereof  
 
Ministry of Economy, 
Ministry of Defence or 
Ministry of Interior 
97.01  Paintings, drawings and pastels, executed entirely 
by hand, other than drawings on heading No. 
4906 and other than hand-painted or hand-decorated manufactured articles;  collages and similar decorative plaques 
 9701.10 - Paintings (for example, oils, aquarelles and 
pastels) and drawings 
 9701.90 - Other 
97.02 9702.00 Other engravings, prints and lithographs 
97.03 9703.00 Original sculptures a nd statuary, in any material 
97.05 9705.00 Collections and collec tor's pieces of zoological 
botanical, mineralogical, anatomical, historical, 
archaeological, palaeotological, ethnographic or numismatic interest 
97.06 9706.00 Antiques of an age exceeding 100 years  
 
 
 
 
 
Ministry of Culture 
 WT/ACC/SPEC/HRV/6 
Page 72  
 
 Table 5
 
 
Imported Products Subject to Product Quality Control  
and Regulations for the Control of these Products  
 
 Product Description 
1. Meat and Meat Products  
The regulation on the quality of  meat of beef cattle and veni son (Narodne Novine, No. 53/91); 
The regulation on the quality of meat products (Official Gazette, No. 53/91); 
The regulation on the quality of pork and its categorization (Official Gazette No. 53/91). 
2. Fish, Cray-Fish, Mussels, Sea-Urchins, Frogs, Turtles, Snails , and Related Products  
The regulation on the quality of fish, cray-fish, mu ssels, sea-urchins, frogs, turtles, snail, and 
related products (Officia l Gazette, No. 53/91). 
3. Milk, Dairy Products, and Pure Cultures  
The regulation on the quality of milk, dairy pr oducts, and pure cultures (Official Gazette, 
No. 53/91). 
4. Ice-Cream, Ice-Cream Prod ucts, and Frozen Desserts  
The regulation on the quality of milk, dairy pr oducts, and pure cultures (Official Gazette, 
No. 53/91. 
5.  Eggs and Egg Products  
The regulation on the quality of eggs and egg products (Official Gazette, No. 53/91). 
6.  Fruit, Vegetables, Mushrooms and Related Products  
The regulation of the quality of  fruit, vegetables, mushrooms and related products (Official 
Gazette, No. 53/91). 
7. Coffee, Coffee Products, and Produ cts Made of Coffee Substitutes  
The regulation of the quality of  coffee, coffee products, and pr oducts made of coffee substitutes 
(Official Gazette, No. 53/91). 
8. Teas  
The regulation of the quality of coffee, coffee produ cts, and products made of  coffee substitutes, 
tea, condiments, leaven, baking powder, pudding powder and low-caloric products (Official 
Gazette, No. 53/91). 
9. Condiments, Condiment Extr acts, and Condiment Mixtures  
The regulation of the quality of  condiments, condime nts extracts, and condiment mixtures 
(Official Gazette, No. 53/91). 
10. Mustard  
The regulation of the quality of coffee, coffee produ cts, and products made of  coffee substitutes, 
tea, condiments, leaven, baking powder, pudding powder and low-caloric products (Official 
Gazette, No. 53/91). 
11. Common Salt and Brining Salt  
The regulation of the quality of salt used as food (Official Gazette, No. 53/91). 
12. Soups, Soup Concentrates, Sauce Concentrates and Food Supplements  
The regulation of the quality of soups, soup concentrates, sauce c oncentrates and food 
supplements (Official Gazette, No. 53/91). 
13. Leaven, Baking Powder, Pudding Powder  
The regulation of the quality of leaven (Official Gazette, No. 53/91); 
The regulation of the quality of coffee, coffee produ cts, and products made of  coffee substitutes, 
tea, condiments, leaven, baking powder, pudding powder and low-caloric products (Official 
Gazette, No. 53/91). 
14. Additives Used in Production of Food  
The regulation of the quality of additives for food products.  WT/ACC/SPEC/HRV/6 
 Page 73 
 
 
  Product Description 
15. Gain, Baking Products, Past a, and Deep Frozen Pasta  
The regulation of the quality of grain, baking pr oducts, pasta, and deep frozen pasta (Official 
Gazette, No. 53/91). 
16. Biscuits and Biscuit-Related Products  
The regulation of the quality of biscuits a nd biscuit-related products  (Official Gazette, 
No. 53/91). 
17. Food Oils and Vegetable Fats, Margarin e, Mayonnaise and Other Related Products  
The regulation of the quality of oils and vegetable fats, margarin e, mayonnaise and other related 
products (Official Gazette, No. 53/91); The regulation of the quality of olive oil a nd blended olive oil (Offi cial Gazette, No. 53/91). 
18. Sugar and Re lated Products  
The regulation of the quality of oils and vegetable fats, margarin e, mayonnaise, sugar, honey and 
sugar-related produc ts (Official Gazette, No. 53/91). 
19. Honey and Other Apiary Products  
The regulation of the quality of honey and other apiary products and regul ations on methods of 
quality control of honey and other apiary products (Official Ga zette, No. 53/91). 
20. Cacao Products, Creams, Candies and Re lated Products  
The regulation of the quality of cacao products , chocolate-related produc ts, candies (Official 
Gazette, No. 53/91). 
21.  Alcoholic Beverages  
The regulation of the quality of alcoholi c beverages (Official Gazette, No. 53/91). 
22. Beer  
The regulation of the quality of alcoholic a nd non-alcoholic beverage s (Official Gazette, 
No. 53/91). 
23. Non-Alcoholic Beverages  
The regulation of the quality of non-alcoholic be verages and soda-water  (Official Gazette, 
No. 23/97). 
24. Vinegar and Acetic Acid  
The regulation of the quality of vinegar and diluted acetic acid (Official Gazette, No 53/91). 
25. Products Rich in Protein and Products Made of Bland of Proteins, Products for Food Industry  
The regulation of the quality of products rich in protein and products made of bland of proteins, 
products for food industry (Off icial Gazette, No 53/91). 
26. Fodder and Pet-Food  
The regulation of the quality of f odder (Official Gazette, No 53/91). 
27. Fuel Oils  
The rules regulating the quality of fuel oils (Official Gazette No. 53/91). 
28. Jet Engine Fuels  
The rules regulating the quality of jet en gine fuels (Official Gazette No. 79/95); 
29. Pure bred breeding heifers  
Law on Cattle Breeding (Off icial Gazette No. 70/97) 
 
 
__________  
 