WTO status and membership in other trade associations

Commitments under the World Trade Organization and trade relations with the European Union are the major determinants that affect the Croatian trade policy. The trade policy of the Croatia is also determined by free trade agreements that the Republic of Croatia has concluded on bilateral and regional level:  the trade part of the Stabilisation and Association Agreement between Croatia and the EU, European Free Trade Agreement with EFTA, CEFTA 2006 Agreement and the Agreement FTA with the Republic of Turkey.

From the date of EU membership, Croatia will implement  the common commercial policy of the EU (Common Commercial Policy).

Laws and regulations

Trade Act regulates the conditions for trade in the domestic market, the performance of foreign trade, safeguard measures on imports, measures to limit the performance of trade, unfair competition, and control and administrative measures.
The Companies Act regulates economic activity.

Investment Promotion Act regulates the investment promotion of domestic and foreign legal or natural persons who perform economic activities.
Decree on Goods Subject to Export and Import Licences, which is fully compliant with the relevant WTO rules. Permits for all goods, shall be issued automatically, if they meet all legal requirements and are in accordance with international conventions or agreements to which the Republic of Croatia is a party.

Customs Tariff Act, under which each year the Croatian Government brings the Regulation on Customs Tariff Act, which prescribes the level of tariffs that will apply to imports of goods next year.

Institutions

Import

Import of goods into Croatia is subject to payment of value added tax in the amount of 23%. Law on Value Added Tax stipulates that the taxable base for imports of goods makes customs value determined under the customs rules and, if they are not included:

1. customs duties, excise duties, taxes and similar charges payable on importation of goods, except for value added tax
2. costs such as commissions, packaging costs, transport and insurance incurred up to the first place of destination in the country.

Alongside value-added tax, certain products are subject to special taxation through excise taxes and special taxes. The excise products include: alcohol and alcoholic beverages, tobacco and energy products and electricity. Excise duties paid on imports of cars, other motor vehicles, vessels and aircraft, to soft drinks, coffee and luxury products.

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