What is exempt from customs duties as of July 1?

As of July 1, customs supervision is abolished at 74 border crossings between Croatia and neighboring EU member states, as Croatia becomes part of the Customs Union upon joining the EU, a common economic area of 28 countries based on the free movement of goods, i.e., internal trade and the movement of goods without customs formalities and the collection of customs duties among members.

Thus, for the trade of goods within the EU borders, only an invoice, bill, or similar document will be required, along with the obligation to report in INTRASTAT, the European system for collecting data on trade between EU member states. All VAT payers who engage in trade with EU member states and achieve a value of trade exceeding 1.7 million kuna annually will have the obligation to report, and they will need to request their VAT identification number from the Tax Administration.

Companies that exceed this threshold will have to report every entry, i.e., receipt of goods from another member state, as well as every exit, i.e., dispatch of goods to another EU member state, electronically, using the so-called Intrastat form, and the data will be collected by the Customs Administration.

One of the novelties in trade with countries outside the EU is that as of July 1, e-customs will also start, i.e., electronic exchange of data on transit, export, entry, import, and excise duty systems, and for customs procedures, companies will need to request the so-called EORI number for registration and identification of business entities from the locally competent customs office or at the border crossing itself.

The freedom of movement of passengers and goods within the EU will also be established on July 1 in passenger traffic, which will be monitored at the borders with neighboring EU member states only by the police, while customs formalities are abolished here as well.

In passenger traffic with countries outside the EU, no duties will be paid on personal luggage of passengers, as well as on goods for personal use valued at less than 300 euros, instead of the previous one thousand kuna. Customs duties are also exempt for goods valued up to 430 euros that passengers bring into Croatia by air and sea traffic, or up to 150 euros if they are passengers under 15 years old. This limit for persons living in the border area is 40 euros.

Regardless of value, up to 200 cigarettes, 100 cigarillos, 50 cigars, 250 grams of smoking tobacco, 50 milliliters of perfume, and 250 milliliters of toilet water can be imported into Croatia from third countries in passenger traffic. Additionally, customs duties are exempt for one to two liters of alcoholic beverages, depending on the alcohol content, as well as 4 liters of still wine and 16 liters of beer.

The new customs rules will also start to apply in postal traffic as of July 1, which Croatian citizens and companies will also conduct with other EU member states without restrictions and payment of duties.

In postal traffic with third countries, there will be an exemption from customs and VAT for shipments valued up to 22 euros if both the sender and recipient are legal entities, or up to 45 euros if they are individuals. Shipments valued up to 150 euros sent by a legal entity and received by a legal or physical person will be exempt from customs, but VAT will be paid on the value between 22 and 150 euros, while customs and VAT will be charged on all shipments valued over 150 euros.

When importing motor vehicles from the EU, a special tax, i.e., excise duty, will be paid before the first registration in Croatia, and a refund of this tax will be possible if the vehicles are exported from Croatia after registration. In addition to the value of the vehicle, the criterion for the amount of excise duty will also be CO2 emissions. For vehicles imported from outside the EU, customs and VAT will be paid during the customs clearance process, and after the first registration in Croatia, a special tax will also apply.

One of the novelties after joining 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 process, 75 percent of the collected customs duties constitutes direct revenue for the EU, while 25 percent goes to the national budget, prompting the Customs Administration to encourage Croatian entrepreneurs to continue clearing goods in Croatia.

Although customs control will be abolished at some border crossings due to changes in the customs system, it will be intensified throughout Croatia, with a significant increase in mobile teams of the Customs Administration. There are currently seven such teams, and the Customs Administration intends to significantly increase this number and include 200 to 250 people in them.

After Croatia joins the European Union, a unified customs procedure, as stipulated by the rules of the Customs Union, will be implemented on Croatian territory, but exceptions to these rules will be the border crossings of Klek and Zaton Doli, as well as the Neum Corridor, where the continuity of EU territory is interrupted, and special rules apply, especially in trade.

The rules for crossing the Neum Corridor depend on the type, origin, and value of the goods and range from passing only with an invoice when it comes to domestic goods valued up to 10,000 euros, to fulfilling all previous customs procedures when it comes to trade with countries outside the EU.

Customs procedures will primarily depend on the customs status of the goods, which is determined by the origin of the goods. As of July 1, domestic goods are considered to be products produced in the EU or imported from third countries but released for free circulation in the EU, as well as goods obtained or produced in the EU from raw materials imported from third countries and released for free circulation in the EU. All other products have the customs status of “goods that do not have the status of Community goods.”

Thus, as of July 1, for passing through the Neum Corridor for domestic goods valued up to 10,000 euros, only proof of the status of the goods, e.g., an invoice, will be required, and for passing through this corridor, the local customs office will determine a limited time frame.

For domestic goods valued over 10,000 euros, a so-called exit summary declaration will be required, which the Customs Administration will certify upon entering the corridor, and which the carrier must resubmit to the customs office upon exiting the corridor, i.e., re-entering Croatian territory, thus EU territory.

There are certain exceptions to this rule, regardless of value, such as letters, postcards, and printed matter, as well as personal items, household linens, furniture, or other equipment intended for personal use, and goods in personal luggage.

For goods that do not have the status of domestic goods and for crossing the Neum Corridor, the usual customs rules apply, as at other border crossings.

Special rules also apply to products of animal origin, i.e., meat and fish products and products of animal origin intended for human and animal consumption, as well as for pharmaceutical, industrial, or agricultural use, which can only be transported through this corridor in vehicles sealed by the Customs Administration at the entry point into the corridor.

Due to the health situation in Bosnia and Herzegovina, and according to the assessment of the European Commission, the transport of live animals through this corridor is completely prohibited, and they must be transported by ferry between Ploče and Pelješac. An exception is the transport of up to five pets, namely dogs, cats, or domesticated ferrets.