What news awaits us at Customs?

From July 1, customs control will be abolished at 74 border crossings between Croatia and neighboring EU member states, as Croatia becomes part of the Customs Union upon entering the EU, based on the free movement of passengers and goods throughout the Union, without customs formalities and the collection of customs duties among members, it was stated at today’s press conference of the Customs Administration of the Ministry of Finance.

Presenting the changes that will take effect, the director of the Customs Administration, Zlatko Grabar, explained that freedom of movement will be fully established in the trade and passenger traffic between Croatia and other EU member states, and that goods within the EU will move only with an invoice or another similar document.

In trade with third countries, non-EU members, nothing significant will change, as Croatian legislation in this area is already aligned with EU law, emphasized Grabar.

In passenger traffic, the movement of passengers and goods at the borders with neighboring EU members will be monitored only by the police, and in postal traffic with EU members, there will no longer be restrictions and payment of duties.

In passenger and postal traffic with third countries, there are also no significant changes, except for an increase in some exemptions in passenger traffic and allowed quantities of goods that are not subject to customs duties. For example, instead of the previous 1,000 kuna, from July 1, goods for personal use worth up to 300 euros will be exempt from customs duties, and without duties, one can import, for example, 200 cigarettes, 50 milliliters of perfume, one to two liters of alcoholic beverages (depending on the alcohol content), or, for example, 16 liters of beer.

Outside the EU, in postal traffic, customs and VAT will be exempt for shipments worth up to 22 euros if the sender and recipient are legal entities, or 45 euros for individuals.

When importing motor vehicles from the EU, a special tax will be paid before the first registration in Croatia, and a refund of this tax will be possible if the vehicles are subsequently exported from Croatia.

A specific feature in customs procedures after July 1 is the Neum Corridor, where the continuity of EU territory is interrupted, and special rules apply, especially in trade.

Namely, for domestic goods (from Croatia and the EU) worth up to 10,000 euros, only proof of the status of the goods, e.g., an invoice, will be required. For more valuable goods, the previous security documents are mandatory. Animal products can only be transported through this corridor in vehicles sealed by the Customs Administration, while the transport of live animals is prohibited, except for up to five pets, which must be transported by ferry between Ploče and Pelješac.

During peak traffic, usually in the tourist season, about 600 cargo shipments pass through this corridor – two-thirds towards Dubrovnik, one towards the north, and of that, about 90 percent of shipments are intended for domestic trade, while about 10 percent continue on to Montenegro, said the deputy director of the Customs Administration, Bosiljko Zlopaša, adding that no special delays due to the new rules in that corridor are expected.

One of the novelties after entering the EU is the possibility for Croatian entrepreneurs to clear goods from third countries in any EU country, or for entrepreneurs from other EU countries to do so in Croatia.

In this regard, 75 percent of collected customs duties constitutes direct revenue for the EU, while 25 percent goes to the national budget. A decrease in customs revenue in the Croatian budget is certainly expected on this basis, but employees in all customs offices have been instructed to inform entrepreneurs in their area about all changes and to ask them to continue clearing goods in Croatia, said Grabar.

Changes in the customs system have also reduced the need for customs officers at border crossings, but Grabar stated that this has been resolved by reallocating 300 officers to other positions within the civil service, and another 200 within the customs system, and that there have been no layoffs nor will there be any.

Namely, the Customs Administration will strengthen its mobile teams, which carry out customs supervision throughout the country. The current team consists of seven, and Grabar stated that the intention is to significantly increase that number and include 200 to 250 people.