In general, due to relative high households debts Croatian consumers are forced to be more and more price sensitive customers. Nevertheless, they like buying known and fashionable brands they know and trust even if they should not be in a position to buy them, especially in cosmetics, cloths and similar outlook accessories. Since they are very proud of their country, they respect also successful domestic brands as well as worldwide known brands that they perceive as bringing good quality for value ratio to them.
Retailers still prevail in the Croatian distribution landscape, there are more than 40,000 of them (mainly owned by independent individuals). However, an internationalisation and concentration tendency more and more occures in the sector these last years with the development of shopping centrers, department stores and the establishment of international chains of hypermarkets.
In 2007, the distribution sector contributed to 10.9% of Croatia's GDP.
Organizations in the retail sector
Market access procedures
International Conventions
Non tariff barriers
In order to integrate the WTO (entry: November, 2000), Croatia greatly liberalised its economy. For most goods, customs duties are nowadays the only protective measures. There are some exceptions, for instance, qualitative restriction measures as well as quotas authorised by the WTO rules (in case of a deficit in the balance of payments or in case of a strong threat to the local industry). These quotas (for farm products, above all) are assigned by open tendering. The import of certain goods needs a license, which is delivered by the Ministry of Economy. Finally, the import of second-hand motorcars being more than 7 years old is forbidden in Croatia. Croatia now uses a single document for customs declarations, on the model of the Single Administrative Document of the European Union (also used for the transit procedures in the country).
The average tariff for industrial goods is about 3%.
Customs classification
Croatia applies the Harmonized Customs System in line with the EU regulations.
Import procedures
Croatia applies the Harmonized Customs System. The customs duties are calculated Ad valorem on the CIF value.
A Croatian importer is responsible for providing the required import documentation, which consists of common trade, transport, and customs documents, as well as certificates required for quality control and licenses where appropriate. The single Administrative Document (SAD) that is used by EU and most other countries is the key customs document in Croatia as well.
Croatia is member of the CEFTA (Central European Free trade Association) and of WTO. It signed agreements of free trade with the countries of the EU, countries of CEFTA, countries of EFTA, and Turkey.
The industrial sector contributes approximately 20% of GDP. Manufacturing employs nearly 25% of the workforce. In terms of the value added, leaders are manufacturing of food and beverages, electricity, gas and water supply; manufacturing of chemicals and chemical products; refined petroleum products and fabricated metal products. Traditionally, Croatia is also strong in shipbuilding, construction industry and tobacco products.