The Customs Law, Law on Customs Tariffs, and Law on Customs Services were implemented in 1991. Croatia adopted all of the international tariffs and protection agreements ratified by the former Yugoslav SFR that did not contravene Croatia's constitution. The customs system was considerably changed in 1996 with a new customs law that harmonized the system with that of the European Union. In 2000, customs laws were revamped yet again to allow the government to change tariff rates annually. Customs duties range mainly from 0% to 18%. The average tariff for industrial goods is 5% and for agricultural goods 27%. In 1996, goods such as raw materials, semi-finished goods, spare parts, supplies used for repairing war damage, and the household possessions of returning Croatian refugees were exempted from customs duty and subject only to an administrative charge of 1%. The Customs Tariff lists all the goods specified and grouped into a system of 11 sections and 97 chapters with remarks on each chapter to simplify the customs declaration procedure.
Croatia has free trade agreements with Bosnia and Herzegovina, Hungary, Macedonia, and Slovenia, and has an Association Agreement with the European Union.