Croatia, a member of the European Union (EU) since 2013, follows the EU Common Customs Tariff (CCT) when importing goods from outside the European Union. This common tariff regime ensures that all EU member states, including Croatia, apply uniform import duties on products originating from non-EU countries. As a member of the World Trade Organization (WTO), Croatia’s customs policy is aligned with international trade rules. Due to Croatia’s open trade policy within the EU, products from EU member states are generally free of customs duties, while products from non-EU countries are subject to the standard tariffs specified under the EU’s tariff schedules. Croatia also benefits from preferential trade agreements with a number of non-EU countries, reducing or eliminating tariffs on specific goods.
Custom Tariff Rates by Product Category in Croatia
1. Agricultural Products
Agriculture is an important sector in Croatia, though the country relies on imports to meet domestic demand for various agricultural products. The EU’s Common Agricultural Policy (CAP) influences the tariff structure for agricultural products, with reduced tariffs or zero tariffs applied to products from within the EU. Imports from non-EU countries face tariffs depending on the type of product and applicable trade agreements.
1.1 Basic Agricultural Products
- Cereals and Grains: Croatia imports cereals such as wheat, maize, and rice to complement domestic production.
- Wheat: Typically taxed at zero tariffs within the EU. For non-EU countries, the EU’s Common Customs Tariff applies, with tariffs ranging from 10% to 25%.
- Rice: Rice imports from non-EU countries face tariffs of 5% to 65%, depending on the variety and processing level.
- Fruits and Vegetables: Croatia imports a wide variety of fruits and vegetables to meet demand, particularly during the off-season.
- Citrus fruits (oranges, lemons): Tariffs for non-EU imports range from 5% to 16%, depending on the country of origin. Preferential agreements with Mediterranean countries like Morocco reduce these rates.
- Tomatoes and leafy greens: Typically taxed at 8% to 14%, with seasonal adjustments to protect domestic farmers during harvest seasons.
- Sugar and Sweeteners: Croatia imports sugar primarily to supplement local production. Sugar imports are subject to TRQs (Tariff Rate Quotas), which allow a certain amount to enter at reduced tariffs, while over-quota imports face higher duties.
- Refined sugar: Within quota, imports are taxed at zero tariffs, while over-quota imports face tariffs of 50%.
1.2 Livestock and Dairy Products
- Meat and Poultry: Croatia imports various types of meat and poultry to meet local demand, with tariffs depending on the type of meat and trade agreements.
- Beef and pork: Within the EU, beef and pork are subject to zero tariffs. Imports from non-EU countries face tariffs of 12% to 15%, though preferential rates may apply for countries with trade agreements like Canada (under CETA).
- Poultry: Non-EU poultry imports are taxed at 12.9%, with lower tariffs for specific quantities under TRQs.
- Dairy Products: Croatia imports dairy products like cheese, milk powder, and butter, with tariffs structured to protect local dairy producers.
- Milk powder and cheese: Imports from non-EU countries face tariffs of 15% to 20%, though imports from FTA countries like New Zealand may benefit from reduced tariffs.
1.3 Special Import Duties
To protect local agriculture, Croatia may apply safeguard measures or anti-dumping duties on certain agricultural imports. For example, anti-dumping duties have been imposed on poultry products from Brazil to shield EU poultry farmers from unfairly priced imports.
2. Industrial Goods
Croatia’s industrial sector, including manufacturing, construction, and energy production, relies heavily on imports of industrial goods. The EU’s CCT applies to most industrial goods imported from non-EU countries, with tariff reductions available under specific trade agreements.
2.1 Machinery and Equipment
- Industrial Machinery: Croatia imports significant amounts of machinery and equipment for its manufacturing and construction sectors. Most machinery imports benefit from low or zero tariffs under EU regulations.
- Construction machinery (excavators, bulldozers): Typically taxed at 0% to 2.5%, with duty-free access for EU member states and preferential treatment for FTA partners like South Korea.
- Manufacturing equipment: Generally subject to tariffs of 0% to 5%, with zero tariffs for imports from FTA partners like Japan under the EU-Japan Economic Partnership Agreement.
- Electrical Equipment: Electrical machinery and equipment are crucial for Croatia’s infrastructure development.
- Generators and transformers: Typically taxed at 2% to 5% for non-EU imports, though FTA countries often enjoy zero tariffs.
2.2 Motor Vehicles and Transportation
Croatia imports a significant portion of its motor vehicles and automotive parts, particularly from Germany, Japan, and South Korea. The tariff structure on vehicles reflects EU protection of local car manufacturers while facilitating trade with key partners.
- Passenger Vehicles: Import duties on cars vary depending on the type of vehicle and its country of origin.
- EU-made vehicles: Duty-free.
- Non-EU-made vehicles: Typically taxed at 10%, though imports from South Korea (under the EU-South Korea FTA) and Japan (under the EU-Japan FTA) benefit from reduced tariffs or zero tariffs.
- Commercial Vehicles: Imports of trucks, buses, and other commercial vehicles are taxed at 10%, with preferential tariffs for countries with trade agreements.
- Vehicle Parts and Accessories: Vehicle parts, including engines, tires, and batteries, are generally taxed at 4% to 10%, though parts from FTA partners like Turkey may be imported duty-free.
2.3 Special Import Duties for Certain Countries
The EU imposes anti-dumping duties on specific categories of industrial goods, including steel and automotive components from countries such as China and India, to protect domestic industries from unfair competition.
3. Textiles and Apparel
Croatia imports large volumes of textiles and apparel, particularly from Asian countries like China, Bangladesh, and Vietnam. The tariff structure on textile products reflects EU efforts to protect domestic textile manufacturers while ensuring that consumers have access to affordable clothing.
3.1 Raw Materials
- Textile Fibers and Yarn: Croatia imports raw materials such as cotton, wool, and synthetic fibers to support local textile production.
- Cotton and wool: Typically taxed at 4% to 8% for non-EU imports, with zero tariffs for imports from FTA partners.
- Synthetic fibers: Tariffs range from 6% to 12%, depending on the type and origin of the material.
3.2 Finished Clothing and Apparel
- Clothing and Apparel: Imported garments face moderate tariffs, with preferential treatment for products from countries with trade agreements.
- Casual wear and uniforms: Generally taxed at 12% to 18%, though imports from Vietnam and Bangladesh benefit from reduced tariffs under the EU’s Generalized Scheme of Preferences (GSP).
- Luxury and branded clothing: Higher-end garments face tariffs of 18% to 20%, though imports from countries like South Korea and Japan may benefit from zero tariffs under FTAs.
- Footwear: Imported footwear is taxed at 8% to 17%, depending on the material and country of origin.
- Leather shoes: Typically taxed at 17%, though FTA agreements reduce these tariffs for imports from countries like South Korea and Vietnam.
3.3 Special Import Duties
The EU imposes anti-dumping duties on certain categories of textiles and footwear from countries like China and Vietnam to protect local manufacturers from unfair competition. These duties can significantly raise the cost of imports.
4. Consumer Goods
Croatia imports a wide variety of consumer goods, including electronics, home appliances, and furniture, to meet domestic demand. Tariff rates on these goods are generally moderate, with lower or zero tariffs for products from FTA countries.
4.1 Electronics and Home Appliances
- Household Appliances: Croatia imports most of its large household appliances, such as refrigerators, washing machines, and air conditioners, from countries like Germany, China, and South Korea.
- Refrigerators and freezers: Typically taxed at 2.5% to 5%, though duty-free access is available for imports from the EU and FTA countries.
- Washing machines and air conditioners: Subject to tariffs of 5%, with reduced rates for imports from South Korea under the FTA.
- Consumer Electronics: Electronics such as televisions, smartphones, and laptops are essential imports in Croatia, and tariffs are generally low.
- Televisions: Typically taxed at 5%, though imports from Japan and South Korea benefit from zero tariffs under FTAs.
- Smartphones and laptops: Generally taxed at 0% to 2.5%, particularly for imports from EU and FTA countries.
4.2 Furniture and Furnishings
- Furniture: Imported furniture, including home and office furniture, is subject to tariffs ranging from 4% to 10%, depending on the material and country of origin.
- Wooden furniture: Typically taxed at 5% to 10%, with preferential rates for imports from Turkey and Vietnam under specific trade agreements.
- Plastic and metal furniture: Subject to 4% to 8% tariffs, depending on the origin.
- Home Furnishings: Items such as carpets, curtains, and home décor products are generally taxed at 5% to 10%, with preferential tariffs for imports from countries like India and Pakistan under the GSP.
4.3 Special Import Duties
Croatia, following the EU’s guidelines, applies anti-dumping duties on certain categories of furniture and furnishings from countries like China and Vietnam to protect domestic manufacturers.
5. Energy and Petroleum Products
Croatia imports significant amounts of energy products, particularly petroleum and natural gas, to meet its energy needs. Tariffs on energy imports are generally low to ensure energy security while supporting the transition to renewable energy sources.
5.1 Petroleum Products
- Crude Oil and Gasoline: Croatia imports petroleum products from a variety of countries, including Russia and Middle Eastern nations.
- Crude oil: Typically subject to zero tariffs, in line with the EU’s energy security policies.
- Gasoline and diesel: Generally taxed at 2.5% to 4%, with lower tariffs for imports from Norway and Russia under trade agreements.
- Diesel and Other Refined Petroleum Products: Refined products are taxed at 3% to 5%, though lower tariffs apply under EU energy agreements with neighboring countries.
5.2 Renewable Energy Equipment
- Solar Panels and Wind Turbines: To promote the use of renewable energy, Croatia applies zero tariffs on renewable energy equipment such as solar panels and wind turbines, in line with EU green energy policies.
6. Pharmaceuticals and Medical Equipment
Croatia prioritizes access to affordable healthcare, and as such, tariffs on essential medicines and medical equipment are kept low or zero to ensure affordability and availability for the population.
6.1 Pharmaceuticals
- Medicines: Essential medicines, including life-saving drugs, are generally subject to zero tariffs under the EU’s general tariff regime. Non-essential pharmaceutical products may face tariffs of 2% to 5%, though reduced or zero tariffs apply to imports from countries with FTAs.
6.2 Medical Devices
- Medical Equipment: Medical devices, such as diagnostic tools, surgical instruments, and hospital beds, are generally subject to zero tariffs or low tariffs (2% to 5%), depending on the product’s necessity and the country of origin.
7. Special Import Duties and Exemptions
7.1 Special Duties for Non-Preferential Countries
Croatia follows the EU’s application of anti-dumping duties and countervailing duties on certain imports from countries outside preferential trade agreements. These duties are imposed to prevent products from being sold below market value or with unfair subsidies. For example, steel products and textiles from China and India are often subject to such measures.
7.2 Bilateral and Multilateral Agreements
- EU Free Trade Agreements (FTAs): As part of the EU, Croatia benefits from duty-free access for most goods traded within the EU. Additionally, Croatia enjoys reduced or zero tariffs on goods traded with countries like Japan, South Korea, Canada, and Vietnam under the EU’s FTAs.
- Generalized Scheme of Preferences (GSP): Under the GSP, Croatia benefits from reduced tariffs on certain imports from developing countries, such as India, Pakistan, and Bangladesh.
Country Facts
- Official Name: Republic of Croatia
- Capital City: Zagreb
- Largest Cities:
- Zagreb (capital and largest city)
- Split
- Rijeka
- Per Capita Income: Approx. $16,000 USD (2023 estimate)
- Population: Approx. 4 million (2023 estimate)
- Official Language: Croatian
- Currency: Euro (EUR) (Adopted as official currency in 2023, previously Croatian Kuna)
- Location: Croatia is located in Southeastern Europe, bordered by Slovenia, Hungary, Serbia, Bosnia and Herzegovina, Montenegro, and the Adriatic Sea to the west.
Geography of Croatia
Croatia is a geographically diverse country, spanning coastal regions along the Adriatic Sea, plains in the north, and mountainous regions in the central part of the country. Croatia covers an area of 56,594 square kilometers, with more than 1,000 islands along its coastline.
- Coastline: The Croatian coast along the Adriatic Sea is one of the most beautiful and rugged coastlines in Europe, making tourism a significant contributor to the economy.
- Mountains: The Dinaric Alps run along the central part of the country, with the highest peak being Mount Dinara.
- Rivers: Major rivers include the Sava, Drava, and Danube, which are important for agriculture, transportation, and energy.
Economy of Croatia
Croatia’s economy is diverse, with significant contributions from sectors such as tourism, manufacturing, agriculture, and energy. As a member of the European Union, Croatia benefits from strong trade ties within the EU, as well as access to the single market. Since the adoption of the Euro in 2023, Croatia has seen greater stability in its economic transactions.
1. Tourism
Tourism is one of the most important sectors in Croatia’s economy, accounting for a large share of GDP and employment. The country’s Adriatic coast and historic cities, such as Dubrovnik and Split, attract millions of tourists each year, particularly during the summer months.
2. Manufacturing
The manufacturing sector is vital to Croatia’s economy, with industries including shipbuilding, automotive parts, chemicals, and textiles. Croatian manufacturers benefit from access to the EU single market, which enhances export opportunities.
3. Agriculture
Agriculture is an important sector, particularly in rural areas, with major crops including wheat, maize, sugar beets, and wine. The country’s agricultural sector is supported by EU subsidies and investments under the Common Agricultural Policy (CAP).
4. Energy
The energy sector is an area of growth, with Croatia focusing on renewable energy sources such as wind and solar power. The country also imports natural gas and oil to meet domestic demand, while gradually shifting towards cleaner energy sources.
