How to Export to Croatia

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Croatia

How to Export to Croatia


How To Export to Croatia

Customs Valuation
The primary basis for customs valuation is the contracted price (transaction value) of the goods -- the price paid or the price that is to be paid for the imported good. This value includes all duties, transport costs (as well as loading/unloading charges), insurance, agent's commission, packaging and taxes outside Croatia.

Duty
Duties vary by the good that is exported. Each product has a harmonized system number (also known as a Schedule B number), which identifies the product internationally. Harmonized codes can be found on the Internet by running a key word search on the Census Bureau Web Site or by calling the Census Bureau (Tel: (301) 763-3259 or (301) 763-3047). The specific duty rates are published in the Croatian tariff schedule based on this harmonized System of classification and CEEBIC (Tel:(202) 482-2645) can provide the duty rate if exporter supplies the Harmonized code for the good. For more information on tariffs for IT products, click here.

*The duty is assessed on the CIF, or cost, insurance and freight

The Croatian customs system is regulated through the Customs Act, the Customs Tariff Act, and the Customs Administration Act. The Customs Tariff Act includes the International Convention on the Harmonized Commodity Description and Coding System. Customs duty is levied on the customs value of imported goods according to rates established by the Customs Tariff Act. The basic rates of customs duty for countries with Preferential Trading Status are set on the basis of the degree of processing and extent of domestic production and range from 0% to 25%.

Import Tax
Croatia does not have an import tax

Value Added Tax (VAT)

The Value Added Tax (VAT) is a European type of sales tax that is applied to all goods, both domestic and foreign, sold within Croatia. The VAT rate for Croatia is 22%. VAT statements must be submitted within 30 days; however, there is an exception for those entrepreneurs that for the previous calendar year delivered goods or performed services to the value of 300,000 HRK (VAT included). In this case a three-month period is prescribed for VAT statements. After the statement period (whether 30 days or three months) expires all payers must pay the VAT within 10 days. The threshold for becoming an obligatory VAT payer is fixed at 85,000 HRK, however, entrepreneurs earning less than this amount may voluntarily register themselves on the VAT Payer Register.

*The VAT is assessed on the CIF plus the amount paid in duties.

Excise, Consumption, and Luxury Taxes

* Importers are required to pay excise duty on petroleum derivatives. The amount of excise duty varies from 0.00 to 3.50 HRK per liter of petroleum product and depends on the type. The excise duty is paid when the goods are cleared through customs.
* There is an excise tax for importers on tobacco products. Depending on the cigarette brand, excise duty varies from 5.00 to 8.90 HRK per packet, and from 1.10 to 38.00 HRK on other tobacco products. Importers pay excise duty when the goods are cleared through customs and for tobacco products sold in duty-free shops, specialized warehouses and free zones the excise duty is paid when the products are delivered.
* Excise duty on beer amounts to 120.00 HRK per hectoliter of domestic or imported beer and 60.00 HRK per hectoliter of non-alcoholic beer brewed in Croatia or abroad. The duty must be paid within 30 days from when the beer is cleared through customs.
* For non-alcoholic beverages, excise duty amounts to 40.00 HRK per hectoliter of domestic or imported non-alcoholic beverages. Excise duty on non-alcoholic beverages is paid within 30 days from when they are cleared through customs.
* Excise duty on alcoholic beverages amounts to 80.00 HRK per liter of pure alcohol. ? For coffee imports, excise duty is paid as follows (for 1 kilogram of coffee net weight): not roasted coffee, whether decaffeinated or not: 5.00 HRK; roasted coffee, whether decaffeinated or not: 12.00 HRKM; coffee husks and skins: 15.00 HRK; coffee substitutes: 20.00 HRK. The duty must be paid when the coffee is cleared through customs.
* There is an excise duty levied on personal cars, other motor vehicles, ships, boats, and aircrafts imported or manufactured in Croatia. Excise duty is payable depending on the sale price of the vehicle (cars and motorcycles), on the length of the vessel, or the number of seats (aircraft). This Act also regulates the levying of excise duty on used cars, other motor vehicles, vessels and aircraft purchased or acquired by legal entities or natural persons. The duty is paid at the moment of importation, when the vehicle is cleared through customs.
* For luxury products, excise duty is paid by importers at the rate of 30% of the tax base. The tax base is the sale value of a luxury product (jewelry and related products, watches, clothes and footwear made of fur and reptile skins, pyrotechnic products and weapons), VAT excluded. Excise duty on luxury products is payable at the moment of delivery of goods to the buyer.


Exemptions

The Customs Act provides for tariff concessions or exemptions for certain goods. Customs concession/exemption quotas are approved only for a limited period of time and they contain the quantity or value of imports that are exempt from customs duty:

o raw materials that are not naturally found in Croatia
o import of raw materials, semi-manufactured and other materials used in the manufacture of export products
o import of equipment, parts and installation materials used for replacing or repairing equipment and facilities destroyed or damaged during the war
o equipment imported as a part of inward investment into Croatia, may be exempt from customs duty if the following conditions apply: investment is not for a period of less than five years, investment by the foreign party is at least 20% of the total investment, ans equipment is used for performing the registered activity

VAT exemptions for imports:

o temporary imports (which are also exempt from import duties) and imports for humanitarian aid, excluding petroleum and petroleum derivatives, tobacco and tobacco products, alcohol, and alcoholic beverages
o gold bullion imported by the Croatian National Bank, domestic and foreign legal payment reserves, securities, and shares
o personal luggage of unlimited value, and other goods for personal use up to the total value of 300 HRK imported by domestic and foreign travelers on arrival from foreign destinations, if these goods are not intended for resale
o goods imported through postal and other parcels up to the value of 300 HRK sent to Croatian and foreign citizens from abroad
o free advertising material and samples that are imported with an individual value not exceeding 60 HRK and received by state authorities, companies, institutions, and other legal entities and natural persons
o goods imported by Croatian citizens and foreign citizens living in Croatia, which were inherited abroad
o brand names, patents, models, and accompanying documentation, as well as patent and innovation forms from organizations for the protection of intellectual and industrial property
o personal documents, forms, and data storage devices
o goods which are donated to humanitarian organizations, health, educational, cultural, scientific, religious and social institutions, amateur sports clubs and institutions of national and local government, or goods which are purchased by the same organizations using money from foreign donors
o goods imported as the intellectual property of scientists, writers, and artists
o services that are carried out in handling imports that have their fee already included in the tax assessment rate.
o services carried out by the Croatian Railways company in transporting imported goods

Temporary Entry
Temporary entry of products into Croatia is regulated in accordance with the EU Customs Code and international customs conventions. Croatia is a party to the Customs Convention on Carnet ATA for Temporary Import of Goods. Presentation of an ATA carnet or TIT carnet facilitates the process. An entry carnet can be obtained from a local chamber of commerce in the United States. Carnets are usually valid for one year and list the products to be entered on a duty-free basis. The carnet must be presented upon entry. Customs will stamp the carnet thereby validating it. Upon departure, the carnet must again be presented for validation, confirming that the product is being transported out of the country. Failure to re-export the goods results in application of the duties. For more information on ATA carnets, contact the U.S. Council for International Business at 1-866-7-UNLOCK or http://www.merchandisepassport.org.

Free Trade Zones/Warehouses

According to the Law on Free Trade Zones, adopted in June 1996, a company in a free trade zone may engage in manufacturing, wholesale but not retail trade, foreign trade, banking, and other financial activities. Free trade zone users are eligible for the following benefits: waiver of tariff on imported products; a user of the zone who constructs or participates in construction of infrastructure projects in the zone worth KN 1 million (about $120,000) or more, is exempted from paying corporate tax during the first five years of operation in the zone; other users in the zone pay corporate tax in the amount of 50 percent of the regular rate (i.e. 12.5 percent instead of 25 percent); zones are exempted from any Croatian emergency measures or other restrictions pertaining to foreign trade or hard currency transactions. Users of the zones may freely store their goods and production equipment in the zones. Goods, which are not intended for trade on the Croatian market or for domestic consumption, are fully exempt from custom duties or taxes. The Investment Promotion Department within the Ministry of the Economy is the regulatory agency for administration of the free trade zones.

Membership in Free Trade Agreements

Croatia has free trade agreements with EU, EFTA countries (Norway, Iceland, Liechtenstein, and Switzerland), CEFTA countries (Slovenia, Poland, Czech Republic, Slovakia, Hungary, Romania, and Bulgaria), and with Albania, Bosnia and Herzegovina, Serbia and Montenegro, Lithuania, Macedonia, and Turkey. Negotiations are underway with Moldova.


Import Documentation
Required import documents:

o invoice including quantity and price of the goods
o declaration of value if required
o documents required for applying preferential rates (e.g. certificates of origin)
o forwarding documents
o insurance bill if goods are insured
o packing list
o if goods are under a special regime - document issued by a competent state organ

Optional documents:

o application for customs inspection on the importers' premises (stock, free trade zone etc.)

Certain imports (food, cattle, consumer goods, medicines, etc.) must be accompanied by special certificates (sanitary certificate, veterinary and phytopathological certificate, certificate of quality) which are issued by competent institutions, dependant on the type of goods. Goods which must undergo the proscribed procedure of obligatory certification or homologisation must be tested, certified by an authorized organization, and adequately labeled before being traded


Import Licenses

Import licenses are required for arms/ammunition, military and police equipment, mobile radio sets, drugs, narcotics, antiquities, works of art, precious metals, waste, and substances harmful to the ozone layer. Import licenses are issued by the Ministry of Economy.


Export Licenses

Most high-tech Western technology can flow into Central and Eastern Europe without a U.S. export license. However, the goods that need an export license are different for every country and the list constantly changes. Generally, defense products and equipment such as optical equipment and software that may have a dual usage do require an export license. Export licenses can be obtained from the Bureau of Industry and Security (BIS) (formerly, BXA at the U.S. Department of Commerce). BIS coordinates the licensing process with the Departments of State and Defense. If an exporter has a good that may need a license, the Export Commodity Control Number (ECCN) must be determined from the manufacturer. The number can also be obtained by filling out the BIS-748 Multipurpose Form, available by calling BIS's form request line (Tel: (202) 482-3332). This form also serves as the application for the export license itself. For specific questions about Export Licenses, call (202) 482-4811.


Standards and Quality Control

On June 28, 1996, Croatia adopted The Law on Standards, which modified the Croatian system of standards to the European and international systems. The standards are generally not mandatory, but some could be made so by a government agency or additional regulations. Accreditation of laboratories and certification bodies is performed according to the EN 45000 (European standards). Information about obtaining the EU's CE Mark can be obtained by contacting the U.S. Commerce Department's Office of the European Union and Regional Affairs (Tel:(202) 482-4496).

Information on particular Croatian standards as well as testing and certification can be obtained from the Croatian State Office for Standards and Metrology. Most equipment is subject to safety requirements that are not listed as standards but are prescribed in the Law on Safety at Work. Information on these requirements can be obtained from the Ministry of Labor and Social Welfare. Cars, furniture, cement, textiles and other appliances that may be dangerous for the consumer, are subject to quality control by inspection officials at Customs. Other products may also have to pass sanitary, phytopathologic or veterinary control. Information on sanitary requirements can be obtained from the Ministry of Health, and information of phytopathologic and veterinary requirements from the Ministry of Agriculture and Forestry.

Pre-customs quality inspections are now required for products made from fish or other sea animals, milk and milk products, coffee, coffee products and substitutes, egg products, fruit, vegetables, and mushroom products, ice cream and other frozen desserts, mustard, spices, extracts, and cooking salts and brine salt. To clear inspection with any of these, importers must submit a request 24 hours in advance of reaching customs. Invoices and product specifications must be included. Importers must also delegate a representative to attend the inspection and provide product samples. To meet the requirement of having a designated representative on sight at inspection, exporters often use a local freight forwarder. A list of local freight forwarders can be found on the US Embassy in Zagreb's website.

* Labeling, Marking Requirements
Labels must contain the following information: name of the product, full address of the producer or full address of the importer, net quantity/weight/volume, ingredients, manner of storage (transport, use or maintenance), and pertinent consumer warnings. Technically complicated products must be accompanied by instructions on usage, the manufacturer's specifications, a list of authorized maintenance offices, warranty information, warranty period, and other applicable data. All information must be in Croatian and affixed to (or accompanying) each product before it is put on the market.

Useful Addresses

Croatian Customs Office
Humboldtova 4a
10000 Zagreb, Croatia
Tel: (385 1) 6102-333
Fax: (385 1) 6155-275
E-mail: carina@carina.hr

Croatian State Office for Standards and Measures
Ulica grada Vukovar 78
10000 Zagreb, Croatia
Tel: (385-1) 6133-444
Fax: (385-1) 536-688
Website: http://www.dznm.hr/
Email: pisarnica@dznm.hr