MANUAL FOR PROVIDERS OF STATISTICAL INFORMATION FOR INTRASTAT

2016

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Content

Introduction .............................................................................................................................................. 3 What is Intrastat? ..................................................................................................................................... 4 Legal basis............................................................................................................................................... 4 Institutional responsibility for Intrastat in the Republic of Croatia ............................................................ 5 Reporting obligations ............................................................................................................................... 5 Scope ....................................................................................................................................................... 7 Reference period and deadlines for submitting Intrastat forms ............................................................... 8 Reporting responsibility ........................................................................................................................... 9 Reporting methods .................................................................................................................................. 9 Confidentiality ........................................................................................................................................ 10 Intrastat form.......................................................................................................................................... 11 Summarizing items with identical data .................................................................................................. 16 Specific goods and specific movements of goods................................................................................. 17

1. Industrial plants.......................................................................................................................... 17 2. Staggered consignments ........................................................................................................... 18 3. Vessels and aircraft ................................................................................................................... 18 4. Goods delivered to vessels and aircraft .................................................................................... 19 5. Offshore installations ................................................................................................................. 19 6. Sea products .............................................................................................................................. 20

Particular trade flows – examples.......................................................................................................... 21 1. Goods in transit.......................................................................................................................... 21 2. The sale / purchase with the intermediation of an agent (intermediary) ................................... 22 3. Delivery of goods with the intermediation of a commision agent .............................................. 22 4. Operational and financial leasing .............................................................................................. 23 5. Consignment .............................................................................................................................. 24 6. Triangul trade ............................................................................................................................. 25 7. Rotterdam Effect (Quasi transit) ................................................................................................ 28 8. Processing ................................................................................................................................. 30 9. Return and replacemet of goods ............................................................................................... 36

Role of tax data in Intrastat system ....................................................................................................... 37 Tehnical part of CA ................................................................................................................................ 39 Annex 1. Application form for the Intrastat ............................................................................................ 40 Annex 2. Nature of transactions codes ................................................................................................. 42 Annex 3. What is reported for Intrastat .................................................................................................. 44 Annex 4. List of exemptions .................................................................................................................. 45 Annex 5. Field description of the Intrastat form ..................................................................................... 46 Annex 6. Geonomenclature ................................................................................................................... 47 Annex 7. Delivery terms ........................................................................................................................ 50 Annex 8. Place of delivery ..................................................................................................................... 50 Annex 9. Mode of transport ................................................................................................................... 51 Annex 10. Calculation of statistical value according to delivery terms - Incoterms (simplified) ............ 51

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Introduction Entering of the Republic of Croatia to the European Union, on 1 July 2013., border controls and customs formalities for the movement of goods between the Republic of Croatia and other EU Member States have been abolished, and the Single Administrative Document (SAD) has ceased to be the source of data for statistics on trading in goods between Member States. New Intrastat survey has been introduced which purpose is direct data collection from business entities that trade with EU Member States. The purpose of this Manual is to provide business entities – providers of statistical information which are obliged to submit the data on trade in goods with Member States of the European Union (Intrastat data) the necessary information due to easier and more accurate fulfillment of Intrastat form

1 in order

to achieve a better quality of collected data. In order for a certain business entity to become obliged for providing information for the Intrastat system, the following three criteria should be met:

- The business entity should be registered for VAT

- The business entity trades with EU Member States

- Its annual value of foreign trade with other EU Member States exceeds the determined exemption threshold, defined for each year, separately for arrivals and separately for dispatches. For 2016, exemption threshold value is set to 1.8 million kuna for arrivals and 900 000 thousand kuna for dispatches.

This Manual is based on the fundamental methodological recommendations of Eurostat, giving practical application of basic legislative and implementing regulations for the implementation of the Intrastat system.

1 Intrastat form is a data set which PSIs have to report to Intrastat electronically

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What is Intrastat?

Intrastat is a system for collecting statistical data on the trade in goods between Member States of the European Union (EU). Establishing the European single market physical borders between Member States have been abolished, until the source of data on foreign trade in goods were the Single Administrative Documents. Since 1993, data on trade in goods between Member States have been collected directly from business entities (providers of statistical information – PSIs) using the Intrastat statistical form.

Legal basis

European legislation

The legal basis for implementing Intrastat is the European legislation related to the statistics on the trading in goods between EU Member States (Regulation No 638/2004 and amending regulations Nos 222/2009 and 659/2014 of the European Parliament and of the Council, as well as the Commission Implementing Regulation No 1982/2004 and Commission amending regulations Nos 1915/2005, 91/2010, 96/2010 and 1093/2013). The stated Regulations contain methodological rules for collecting statistics (data), reporting thresholds, and the treatment of specific movements of goods. European Regulations have a supranational significance and are mandatory for all EU Member States:

Regulation (EC) No 638/2004 of the European Parliament and of the Council of 31 March 2004 on Community statistics relating to the trading of goods between Member States and repealing Council Regulation (EEC) No 3300/91 (OJ L 102, 7.04.2004)

Amendment: - Regulation (EC) No 222/2009 of the European Parliament and of the Council of 11 March 2009 amending Regulation (EC) No 638/2004 on Community statistics relating to the trading of goods between Member States (OJ L 87, 31.03.2009)

Commission Regulation (EC) No 1982/2004 of 18 November 2004 implementing Regulation (EC) No 638/2004 of the European Parliament and of the Council on Community statistics relating to the trading of goods between Member States and repealing Commission Regulations (EC) No 1901/2000 and (EEC) No 3590/92 (OJ L 343, 19.11.2004) Amendment: - Commission Regulation (EC) No 1915/2005 of 24 November 2005 amending Regulation (EC) No 1982/2004 with regard to the simplification of the recording of the quantity and specifications on particular movements of goods (OJ L 307, 25.11.2005) - Commission Regulation (EU) No 91/2010 of 2 February 2010 amending Regulation (EC) No 1982/2004 implementing Regulation (EC) No 638/2004 of the European Parliament and of the Council on Community statistics relating to the trading of goods between Member States, as regards the list of goods excluded from statistics, the communication of information by the tax administration and quality assessment (OJ L 31, 3.2.2010)

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- Commission Regulation (EU) No 96/2010 of 4 February 2010 amending Regulation (EC) No 1982/2004 implementing Regulation (EC) No 638/2004 of the European Parliament and of the Council on Community statistics relating to the trading of goods between Member States, as regards the simplification threshold, trade by business characteristics, specific goods and movements and nature of transaction codes (OJ L 34, 5. 2. 2010) Commission Regulation No 1093/2013 of 4 November 2013 amending Regulation (EC) No 1982/2004 implementing Regulation of the European Parliament and of the Council on Community statistics with regard to the simplification of the Intrastat system and compilation of Intrastat data Commission Regulation No 1106/2012 of 27 November 2012 implementing Regulation (EC) No 471/2009 of the European Parliament and of the Council on Community statistics relating to external trade with non-member countries, as regards the update of the nomenclature of countries and territories (OJ L 328, 28. 11. 2012) Commission Implementing Regulation (EU) 2015/1754 of 6 October 2015 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 285, 30. 10. 2015)

National legal basis

The legal basis for implementing Intrastat at the national level is the Official Statistics Act (OG Nos 103/03, 75/09 and 59/12), the Annual Implementation Plan for Statistical Activities of the Republic of Croatia, the Programme of Statistical Activities of the Republic of Croatia 2013-2017 and the Customs Administration Act (OG Nos 68/13 and 30/14).

Institutional responsibility for Intrastat in the Republic of Croatia

In terms of the provisions of the Official Statistics Act, the Croatian Bureau of Statistics (CBS) is responsible for preparing and conducting statistical activities, fulfilling international obligations regarding official statistics from the scope of work determined by the Programme of Statistical Activities of the Republic of Croatia and for Intrastat survey. The Croatian Bureau of Statistics and the Customs Administration of the Republic of Croatia signed in 2008 an Agreement on Mutual Cooperation for the Implementation of Intrastat survey (statistics on the trading in goods between EU Member States) into the statistical system of the Republic of Croatia. According to the stated agreement, the CBS is the central authority or institution assigned for Intrastat survey (methodology, data processing and dissemination of statistical data), while the Customs Administration collects and controls data for the stated survey.

Reporting obligations

VAT-registered parties that trade with EU Member States and exceed the exemption threshold value as determined for the

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reference year are obliged to report for Intrastat. Reporting obligation for Intrastat is determined once a year on the basis of data on arrivals from other EU Member States and dispatches of goods to other Member States, for which the PSI reports in the Intrastat forms, including acquisitions and supplies entered on the VAT forms for the previous accounting period (twelve months). Threshold values and PSIs are determined separately for arrivals and separately for dispatches. The PSIs are obliged to report for Intrastat for the flow for which the annual value of trade in goods with EU Member States in the previous accounting period exceeds the defined exemption threshold value for the respective flow, or for both trade flows (arrival/dispatch). The exemption threshold in 2016 is set to 1 800 000 kuna for arrivals and 900 000 kuna for dispatches. The reporting obligation occurs also during the year for which reporting is undertaken when the cumulative value of trade in goods by the business entity, obtained on the basis of data from VAT forms, exceeds the exemption threshold value. In that case, the business entity is obliged to report the data for Intrastat in the month in which the value of the trade in goods exceeded the threshold value. Note: Reporting obligation for PSIs involved in processing activities: All business entities, involved in the processing activities, if exceeding a specified exemption threshold value for a single flow, are obliged to apply themselves in the Intrastat system and report to Intrastat survey. Reports are to be submitted for both flows. So, to all of PSIs engaged in processing activities in addition to the existing reporting obligation (arrival or dispatch) another flow is added (arrival or dispatch), regardless of whether the value of the second flow exceeds a specified exemption threshold value for that flow.

Note for all providers of statistical information engaged in purchasing, sales or resale of electrical energy and/or gas: The value of electrical energy and/or gas physically delivered from another Member State to Republic of Croatia (arrival) should be declared in the Intrastat report. The value of electrical energy and/or gas physically dispatched from Republic of Croatia to another Member State (dispatch) should be declared in the Intrastat report. In addition to physical arrival or dispatch of electrical energy (or gas) to/from Republic of Croatia prerequisite is that company with HR PIN (personal identification number), i.e. provider of statistical information, is receiving or issuing an invoice not only for transit service but also for electric energy (gas) value. In the case of invoicing only transit service there is no transfer of ownership. As it stays a service it is not reported for Intrastat. It is important that arrival is reported according to Member State which will issue an invoice, while dispatch is reported according to Member State to which invoice is issued. The business units are informed by the Croatian Bureau of Statistics and Customs Administration about occurence or

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termination of the obligation. After receiving the reporting obligation Notice the PSI is obliged to submit Application form for the Intrastat within 10 days to the Customs Administration. Application form for the Intrastat (Annex 1) is available on the Intrastat's web page: http://www.dzs.hr/Hrv/intrastat/intrastat.htm The completed Application form for the Intrastat PSI may deliver to Customs Administration using one of the following: Mail to: Carinska uprava Zrinsko Frankopanska 9 40000 Čakovec E-mail to: Intrastat.prijava@carina.hr Or fax: (042) 234-215. The reporting obligation lasts at least until the end of the reference year and remains in force until reception of a notice indicating the cessation of such an obligation. In the event that the PSI in a particular month does not have any transactions, it is obliged to send in a nill Intrastat form. The PSI may transfer its reporting obligation to a third party - a declarant. Though the declarant reports instead of the PSI, the PSI is responsiblefor the timeliness and accuracy of the data. The PSI is obliged to inform the Customs Administration about methods of reporting in terms of representation, and enter and submit the data about third pary declarant on the Application form for the Intrastat. Application form for the Intrastat is submitted to Customs Administration. If the PSI changes its representation data in reporting, data on third party declarant, contact persons or party responsible in the business entity it is obliged to inform the Customs Administration about the change, resubmitting the Application form for the Intrastat which comprises accurate and valid data. In the case of change of the ownership, name, status, address or OIB (due to merger or demerger of a company), the PSI has to provide written notice about the change and implementation date of new data to Customs Administration's, Intrastat Unit to the above stated address or fax and e-mail to: Intrastat.helpdesk@carina.hr.

Scope

Intrastat survey covers all dispatches of goods from the Republic of Croatia into another Member State as well as arrivals of goods from other Member States into the Republic of Croatia (besides the goods noted in Annex 4). This implies purchase, sales, return of goods; goods sent for processing or goods returned from processing (besides repairs and maintenance). Trade in services is not a subject of foreign trade in goods statistics, and for such trade Intrastat form is not submitted. For Intrastat purposes it is important that the goods physically enter or leave the country. Data reported for Intrastat:

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- Commercial transactions of goods which include transfer of ownership, intended for use, consumption, investment or resale;

- Transactions which include transfer of ownership without financial or compensation in kind,

- The movement of goods from one Member State to another without transfer of ownership (for example warehousing, movement of goods prior to and following processing);

- Return of goods and replacement of goods (returning a product and a substitute purchase of a product);

- Other types of transactions, as shown in Annex 2 (see transaction codes 4-9).

For more information, see Annex 3 Data not reported for Intrastat: - Services (the exception is processing of goods); - Goods in transit; - Temporary movement of goods which are not commercial

transactions; - Triangular trade in cases when the goods do not cross the

Croatian border.

For more information, see Annex 4

Reference period and

deadlines for submitting

Intrastat forms

The PSIs report for Intrastat on a monthly basis. The reference period, according to the Article 6 of Regulation (EU) 659/2014 of the European Parliament and of the Council of 15 May 2014 is:

a) the calendar month of dispatch or arrival of the goods;

b) the calendar month during which the chargeable event occurs

for the Community goods on which VAT becomes chargeable on intra-Community acquisitions and supplies.

Depending on the way of doing business, reporting units may choose one of the methods proposed (a or b). The Intrastat form must be submitted no later than the month following the month in which the arrival or dispatch occurred, irrespective of whether payment was carried out or not. Exception to the mentioned above is reporting for vessels and aircrafts, and reporting for staggered consignments. The reference period for vessels and aircrafts is the calendar month during which a transfer of ownership occurs, whereas for staggered consignments the reference period is the month in which the final consignment had been delivered or received. For activities involving operational leasing, the reference period is the month when the goods are received or dispatched (when concluding the contract, if the duration of leasing is expected to exceed two years) or the month in which it becomes evident that the goods will be withheld for more than two years.

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The deadline for submitting Intrastat forms is the fifteenth of the month subsequent to the reference period (if the fifteenth is a non-working day, the deadline is the last working day prior to the fifteenth). Reporting for Intrastat according to deadlines is under the responsibility of the PSI only. In case of non-response the reminders will be sent to the PSIs which do not submit Intrastat form within the deadline and they will be liable for penalties according to the Official Statistics Act. In the event that the PSI in a particular month does not have any transactions, it is obliged to send in a nill Intrastat form. Deadlines for submitting Intrastat forms in 2016

Reference period Submission deadline

January 15.02.2016.

February 15.03.2016.

March 15.04.2016.

April 13.05.2016.

May 15.06.2016.

June 15.07.2016.

July 12.08.2016.

August 15.09.2016.

September 14.10.2016.

October 15.11.2016.

November 15.12.2016.

December 13.01.2017.

Reporting responsibility

The Intrastat form may be filled in by the PSI itself which performs trade transaction or it may intrust to the third party, declarant. The accuracy of the data and reporting for Intrastat according to deadlines is under the responsibility of the PSI only, whether it reports itself or by the third party declarant. In case of non-response the reminders will be sent to the PSIs which do not submit Intrastat form within the deadline and in case of non-performance of its obligations, i.e. complete non-response they can be liable for penalties according to the Official Statistics Act.

Reporting methods

The Intrastat form is submitted only electronically, using the exchange of electronic documents between the entrepreneurs and the Information System of the Customs Administration. The PSIs are submitting the XML electronic Intrastat form to the Customs Intrastat system using the G2B service of the Customs Administration.

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Confidentiality

Pursuant to the Official Statistics Act the data submitted on Intrastat form are considered confidential and are used for statistical purposes only.

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Intrastat form

Where can be found the basic data for filling in the form?

Data to be reported can be found in book keeping accounts or inventory reports, e.g. in an invoice of a purchase or sale, in transport documents and contracts or in orders. Intrastat form comprises a collection of all data which the PSI must report for Intrastat electronically (see Annex Annex 5). The Intrastat form comprises two parts: - header of the Intrastat form, and - reporting items of the Intrastat form. The header of the Intrastat form contains data on the business entity (PSI), Intrastat form and the eventual declarant, and are indicative for all items relating to the particular period and reporting flow.

Fields of header of the Intrastat form2:

Field 0: The flow of goods – designates the flow of goods whether it involves an arrival or dispatch of goods to/from Croatia Field 1: Data on PSI – comprises three (3) sub-fields:

Field 1a: Identification number of PSI - unambiguous determines the PSI, ID of PSI ( PIN)

Field 1b: Name of PSI

Field 1c: Address of PSI

Field 2: Reference period – defines period for which the form is submitted Field 3: Total number of items – total number of items in the reference period, is generated as a sum of all individual reporting items, but the field is not visible in an excel Intrastat form. Field 4: Data on Third Party Declarant – if a third party is submitting the report for PSI, it comprises three (3) sub-fields:

Field 4a: Identification number of a Third Party Declarant - unambiguous determines the TPD, ID of TPD, for the purpose of Intrastat survey PIN will be used as identification number of HR TPD/declarant, while 2 alphabetical characters of country and 18 alpha-numeric characters (Geonomenclature+ID) are provided for foreign TPDs (Geonomenclature+ID).

Field 4b: Name of Third Party Declarant

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Field 4c: Address of Third Party Declarant

Field 4d: Country of Third Party Declarant Field 5: Data on Customs Administration – field is not visible in excel Intrastat form because it is automatically generated . Field 6: Type of form - defines the type of form considering its reporting purpose

Code Description

I Original form

N Substitute form

B Deleting a prior submitted form

0 Nil form

Code I - designates the original form for a particular reference period Code N- designates the substitute form which entirely replaces the original form

- identifikation data (dana on PSI, flow of goods, reference period) on substitute form have to be exactly the same with those on original or nil form because in database it covers substantially the same form with code O or 0 - substitute form is used in case some errors in the report already submitted are identified by PSI, e.g. for net mass

Code B - deleting a prior submitted form - the header of the form needs to be filled in with the same identification data as original, nil or substitute form entering alpha code D in field 6 which will delete a prior submitted form.

Code 0 - nil form (nil report) - submitted by PSIs which did not have an arrival/dispatch from/to EU Member States. For Intrastat purposes they (PSIs) are obliged to forward the Intrastat form with its identification data and code 0.

Field 7: Reference number – the Information System of Customs Administration assign an reference number to Intrastat form after it has passed formal control of the fields and has been received to the system. The field is not visible in an excel Intrastat form, yet in the feedback message that PSI receives with regard to the successful submission of Intrastat form in the system. Field 8: Date - contains the data on date for filling in the Intrastat form, but the field is not visible in an excel Intrastat form since it is filled in automatically. The reporting items of the Intrastat form are part of the form that contains data relating to the type of goods which the particular PSI receives or dispatches in a particular reference period.

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Fields of the Intrastat form’s reporting items:

Field 9: Item number – the number of the last entered item has to be equal to number of items on field 3. Field 10: Commodity code - The eight-digit commodity code according to the Combined Nomenclature (CN). For specific movements of goods the simplified coding of goods is possible. Detailed explanations in heading Specific goods and specific movements of goods. Field 11: Description of goods – trade name of the goods For example: personal vehicle, travel bag, candy, float etc.. With regard to the dispatches or arrivals of ships, the name of the ship is obligatory. The name in the Combined Nomenclature is not used for filling in this field and it can not contain special characters (- /!, "" # $% &, etc.). Description of the goods shall be entered only in Croatian language. Country of destination/consignment code – coded label for country of destination/consignment (Geonomenclature – see Annex 6). For arrivals the Member State from which the goods are sent to Croatia is entered, and for dispatches the last known Member State to which the goods was delivered. HR as a country of destination/consignment code should not occur. Field 13: Delivery terms – comprises two sub-fields: delivery terms' codes according to Incoterms and place of delivery (see Annex 7 and Annex 8). Place under the delivery terms indicates the place where costs and risks are transferred from supplier to the customer. For example, with regard to the arrival of goods from other Member State using EXW parity, code 2 shall be entered for the place of delivery - the territory of another Member State, while regarding a dispatch of goods from the Republic of Croatia with the same parity, the code of the place of delivery is 1 – territory of Croatia. Field 14: Nature of transaction – nature of transaction code according to the listed item (see Annex 2). Reference for processing under contract activities: Arrivals and dispatches of goods for processing under contract are to be reported for Intrastat. Nature of transaction code is 4, first sub-field, and second sub-field code 1 or 2. In case of re-import or re-export of goods following processing under contract, the nature of transaction code is 5, the first sub-field, and in the second sub-field code 1 or 2 is to be entered. In case when business entity which carried out the processing for its own account dispatches the processed goods, code 1 is to be entered for the first and the second sub-field , since the change of ownership took place over the goods from business entity of one Member State to business entity in another Member State. Processing of goods carried out under joint defence projects or other joint intergovernmental production programs is registered under the nature of transaction code 7 in the first sub-field and the second sub-field under the code 0.

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Field 15: Mode of transport – mode of transport code for listed item (see Annex 9). Field 16: Country of origin code – only in case of arrival of goods (Geonomenclature – see Annex 6). The country of origin is assessed according to rules of origin in each Member State (country of origin is the country in which the goods are wholly produced or the last substantial transformation took place). Therefore, for country of origin in the Intrastat reporting a non-EU country code may occur as well. In case of impossibility to assign a correct country of origin, the country of consignment may be entered in field 16 in following cases: - goods in chapter 97 of the Combined Nomenclature, - goods delivered after outward processing, - returned goods, - goods of which the origin is not known, - goods of origin in the reporting Member State (HR). As regards to specific goods and movements, especially vessels and aircraft or goods delivered to vessels and aircraft – special rules regarding the partner Member State / country exist (see chapter Specific goods and movements). Field 17: Net mass – is expressed in kilograms using three decimal places. Exception is electricity for which the net mass is not recorded but the quantity in supplementary unit expressed in megawatts. The net mass is the mass of goods without packaging. If the data on net mass is not available, it has to be determined as accurate as possible. Conversion factors for net mass estimation 2016. Field 18: Quantity in SU – the supplementary unit is stipulated for goods in the Combined Nomenlacture. It is necessary to enter the quantity of goods in stipulated supplementary unit with three decimals. If the supplementary unit is not stipulated by a certain tariff number, or if it concerns the specific movement of goods (industrial plants, goods delivered to vessels and aircrafts and offshore installations), this field shall remain empty! Field 19: Invoiced value - the value of the goods shown on the invoice in the case of a sale or purchase of goods. If there is no invoice, the invoiced value of the goods is estimated on the basis of the price that would be obtained in the event of a sale or purchase of the respective goods. The invoice value does not include VAT and other taxes. It includes additional costs (freight costs, packaging, loading, reloading, insurance) if included in the invoice value and shown on the invoice in accordance with delivery terms (Incoterms). For dispatches and arrivals of goods following processing, the total value of the processed goods is shown. The invoice value is expressed in kuna. In case of value on the invoice shown in foreign curreny, the value shall be converted using the official exchange rate list of the Croatian National Bank. The first valid exchange rate list for the particular month, that is month for which data are reported, is applied for converting of the currency in kuna and is found on the CNB’s website. For example: when reporting arrival and dispatch of goods carried out in January of 2016 the invoice value is reported to the Intrastat according to the midpoint exchange rate published

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in the exchange rate of the CNB No 1, which is determined on 31. 12. 2015, and applied as of 1. 1. 2016 Field 20: Statistical value - the value of goods at the Croatian border. It is calculated in the manner that the invoice value of goods in kuna is calculated according to the franco Croatian border parity. The costs of transport, loading and insurance up to the Croatian border with respect to the delivery terms are completely or partially added to or reduced from the invoice value. With regard to dispatch of goods, the FOB value (free on board) is calculated, i.e. the ancillary costs (e.g. freight, insurance) incurred from the place of delivery in the Republic of Croatia to the port, airport or other frontier-crossing point at the Croatian border, are added to the value of goods. For instance, if the manufacturer delivers the goods from the Republic of Croatia to another Member State, all costs incurred due to the movement of goods from the manufacturer to the port of dispatch or border crossing at the Croatian border are included in the statistical value. With regard to arrival of goods, the CIF value (cost, insurance and freight) is calculated, i.e. the ancillary costs (e.g. freight, insurance) incurred from the place of delivery in the Member State up to the Croatian border is included in the value. In case that the place from which the goods were dispatched from Croatia or the place where the goods have arrived to Croatia is located near the Croatian border (100 km), the ancillary costs incurred in the territory of the Republic of Croatia may be disregarded when calculating the statistical value. The statistical value is expressed in kuna. (see Annex 10). Statistical value regarding processing activities Related to processing activities, the statistical value is tracked on a gross basis. The gross basis means that the value of goods following processing includes: the value of the imported product, the value of the incorporated material and the value of domestic services. With regard to the arrival of goods for processing (nature of transaction 41/42), the statistical value is the estimated market value of goods according to CIF parity, i.e. increased by the costs of transport and insurance incurred up to the Croatian border. With regard to the arrival of goods following processing (nature of transaction 51/52), the statistical value is the total value of goods at the Croatian border, and includes the original value of goods delivered for processing, the cost of processing services, materials and parts incorporated in another Member State (gross value), and the costs of insurance and freight incurred up to the Croatian border. With regard to the dispatch of goods for processing (nature of transaction 41/42), the statistical value is the estimated market value of the goods dispatched for processing increased by the costs of freight and insurance incurred up to the Croatian border, i.e. the value of goods according to the FOB parity. The statistical value for dispatch of goods following processing includes the total value of goods at the Croatian border, and comprises: the original value of the goods imported for processing,

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the value of materials and parts as well as services (gross value), and the costs of freight and insurance up to the Croatian border.

Rebates and discounts Rebates and discounts known at the moment of declaring a particular goods for Intrastat are taken into account when defining the statistical value. However, discounts granted at a later point in time (e.g. not foreseeable at the time of transaction, granted as total amount for all previous transactions) and subsequent changes of the underlying contract do not require an adjustment of the statistical value. Credit notes and their impact on statistical value A credit note is a form or letter from the seller to a buyer, stating that a certain amount has been credited to the buyer's account. It is issued in various situations to correct a mistake, such as (1) an invoice amount is overstated, (2) correct discount rate was not applied, (3) goods spoil within the guarantee period, or (4) they do not meet the buyer's specifications and are returned. If a credit note is issued for an error in declaring value, discount which was approved must be calculated into the statistical value on the Intrastat form during the reference period, or subsequently in the substitute form. If a credit note is issued as a bonus, discount at the end of the year for a good results, it will not be reflected on the transaction value shown on the Intrastat form, since the value of the goods must be established at the moment of crossing the border. In the case that delivered goods is of unsatisfactory quality and has been returned to supplier, the return of goods is to be reported and it is not necessary to carry out the deduction of the value approved by a credit note. Note: PSIs are not required to submit a correction of the value and quantity with a subtitute form if the deviation between the valid and declared value and / or quantity of goods at item level is less than or equal to ± 5%.

Summarizing items with identical data

Individual reports for the same flow, relating to the same product code may be summarized providing that all description data are identical (country of destination or country of consignment, delivery terms – first and second subfields, nature of transactions – first and second subfield, mode of transport, country of origin for arrivals). Summation is carried out in a way summarizing the values of the same type of data (net mass, supplementary unit, invoiced value and statistical value) of each individual report.

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Specific goods and

specific movements of goods

Specific movements of goods are deliveries of goods which on account of their nature call for specific methodological provisions. The characteristics may relate to the characteristics of the delivery, the type of goods, the nature of transactions or the business entities trading in the goods.

1. Industrial plants

The industrial plant is a combination of machines, appliances, apparatus, equipment, instruments and materials from various CN chapters which together make up large-scale, stationary units producing goods (e.g. petroleum refineries, power stations) or providing services (e.g. hospitals) and act as a coordinated entity. For simplified reporting statistics on trade in goods between Member States covers only dispatches and arrivals of the component parts, which are utilized for the construction of new industrial plants or for industrial plants for re-use. The component parts comprise products from the same CN chapter, and are intended for the construction of industrial plants. In particular cases, when the total statistical value of the new industrial plant exceeded the value 3 million euros, it is possible to apply simplified reporting on arrivals and dispatches with the previous approval of the CBS, in accordance with the provisions of Intrastat legislation. If it involves a complete industrial plant for re-use, no such limit value is applied. Request for approval of a simplified reporting must comprises following: - Data on PSI (name, address and PIN) - Flow arrival/dispatch - Partner country (country with which the contract was concluded

and the country / countries from / to which the goods were dispatched, description and name of the industrial plant, CN code

- Country of destination or consigment - Total value of the industrial plant - Delivery period (anticipated begininning and completing of

delivery) - Description or list of goods to be delivered using 2-digit CN

code with an appropriate value. - No of contract - Details if partner in a country of dispatch is using the simplified

reporting

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The aim of this simplification is to reduce the burden for the PSIs since the PSI can declare its trade for each component part using one product code from chapter 98, instead of using a number of different product codes from different sub-titles in the CN chapter. The commodity code is assigned as follows: – The first four digits are 9880. – The fifth and the sixth digit indicate the chapter of the CN to

which the component parts belong (XX). – The seventh and the eighth digits are 0. The quantity in supplementary unit is not recorded but only the net mass. Reporting period is the month in which the goods enter or leave the territory of the Republic of Croatia. If some components are delivered as staggered consignments they only have to be reported once in a month when the last consignment was received or dispatched.

2. Staggered consignments

Staggered consignments mean the delivery of component parts of the entire product in an unassembled or disassembled state, which are, due to commercial or transport reasons, shipped during a number of reference periods. The reference period for arrivals or dispatches of staggered consignments is expressed by reporting data only once, in the month when the last consignment was received or dispatched. The total value of all consignments is reported, and in field 10 (commodity code), the CN code of the assembled product is entered.

3. Vessels and aircraft

The term vessel is defined as a sea-going vessel in accordance with Chapter 89 of CN, tugs, warships and floating structures. The term aircraft considers aircrafts belonging to codes CN 8802 30 and 8802 40. Economic ownership is the right of the VAT-registered entity to benefits relating to the use of vessels or aircraft during economic activity on the basis of accepted respective risks. For vessels and aircraft, the quantity must be expressed in net mass and supplementary unit as defined in the CN. The statistical value is the total amount, which is to be invoiced - transport and insurance costs are excluded - in the event of a sale or purchase of the whole vessel or aircraft.

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Partner countries should be: - Member State in which the VAT-registered entity has been

established and who transfers economic ownership of the vessel or aircraft, upon arrival, or the VAT-registered entity to whom economic ownership of the vessel or aircraft is transferred, upon dispatch;

- Member State of production, upon arrival in the case of new vessels or aircrafts;

- Member State in which the VAT-registered entity has been established and who is the economic owner of the vessel or aircraft, upon arrival, or the Member State, which carries out the processing under contract, upon dispatch, in the cases of processing.

The reference period for arrivals and dispatches is the month when the transfer of economic ownership took place.

4. Goods delivered to vessels and aircraft

Delivery of goods to vessels and aircraft covers the delivery of products intended for the crew and passengers, and for the operation of engines, machines and other equipment of vessels or aircraft. A vessel or aircraft belongs to a Member State in which the VAT-registered entity has been established and who is the economic owner of the vessel or aircraft. Statistics on trade in goods between Member States covers only the dispatch of goods delivered to the territory of the reporting Member State, to vessels and aircrafts, which belong to another Member State. Member States will use the following commodity codes for goods delivered to vessels and aircraft:

- 9930 24 00: goods from CN Chapters 1 to 24 - 9930 27 00: goods from CN Chapter 27 - 9930 99 00: goods classified elsewhere.

The data on quantity in supplementary unit is not reported. However, the data on net mass is mandatory. The simplified code for the partner country ‘QR’ can also be used (Stores and provisions within the framework of intra-EU trade).

5. Offshore installations

The offshore installation refers to the equipment and devices installed and stationed in the sea outside of the statistical territory of any Member State. Goods delivered to offshore installations imply delivery of products intended for the crew (e.g. food) and operation of engines,

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machines and other equipment of the offshore installation (e.g. fuel, spare parts). Goods obtained from or produced by offshore installations refer to products that are extracted from the seabed or subsoil (e.g. gas and oil) or produced by the offshore installations (e.g. electricity produced by wind turbines). Goods that are dispatched from offshore installations must be reported with the appropriate tariff number from the CN (no simplified reporting). Simplified reporting of product codes is permitted for the dispatch and arrival of goods delivered to the crew and functioning of the equipment belonging to the offshore installation. The following codes will be used for goods delivered to offshore installations:

- 9931 24 00: goods from CN chapter 1 to 24 - 9931 27 00: goods from CN chapter 27 - 9931 99 00: goods classified elsewhere.

However, investment goods for the construction or technical improvement of the offshore installation or goods acquired or produced by offshore installation should be reported using the appropriate CN tariff number. The data on quantity in supplementary unit are not reported, however the data on net mass are mandatory. For statistical purposes, offshore installations are considered as a property of the Member State which has exclusive rights to exploit the seabed or subsoil where it is located. Partner country for Intrastat reporting is to be be determined according to the defined property. The simplified code for the partner country ‘QV’ (Countries and territories not specified within the framework of intra-EU trade) can be used.

6. Sea products

Sea products are considered to be fishery products, minerals and other products extracted from the sea or produced on vessels that have not yet been landed by the sea going vessels in the port of the Member State. The vessel belongs to a Member State in which the VAT-registered entity has been established and who is the economic owner of the vessel. The statistics on trade in goods between Member States relating to sea products includes the following arrivals and dispatches: (a) The landing of sea products in the port of the reporting Member State, or their acquisition by a vessel that belongs to a reporting Member State from a vessel that belongs to another Member State. Such transactions are treated as arrivals; (b) The landing of sea products in the port of another Member State from a vessel which belongs to a reporting Member State, or the

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acquisition of sea products by foreign vessels from vessels that belong to the reporting Member State. Such transfers are treated as dispatches. For arrivals, a country partner is a Member State in which the VAT-registered entity is established and is the economic owner of the vessel, which performs the catch, whereas for dispatches, it invoices another Member State where the sea products were landed or where the VAT-registered entity is established and is also the economic owner of the vessel, which acquired the sea products.

Particular trade flows

– examples

1. Goods in transit

When goods on its route from Member State A to Member State C pass through Member State B, it is regarded as transit.

Member State B does not report for Intrastat. This implies that the goods are also in transit in case when the goods are subject of halts in country B for transportation purposes only (reloading).

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2. The sale /purchase with the intermediation of an agent (intermediary)

The intermediary (agent) is a company or person who performs foreign trade operations on behalf and for the account of the principal. The intermediary’s role is to link the principal with a buyer or seller without direct intervention in concluding an activity and to charge a commission for completion of the activity. Company A in Hungary sells goods to company C in Croatia. The sale of goods is carried out through intermediary B. Intermediary B contacts the seller, company A and buyer C. Company A issues an invoice directly to company C. Upon completion of the activity, company A pays a commission to company B. The flow of goods between companies A and C is reported. Company A reports the dispatch of goods to Croatia. Company C reports the arrival of goods from Hungary. The value of goods does not include the commission intended to company B.

3. Delivery of goods with the intermediation of a commision agent

The commission agent is a company or person who performs foreign trade operations on his behalf but for the account of the principal. Three parties are involved in the transaction: the seller, commission agent and buyer. There is an invoice between the seller of goods and the commission agent and between the commission agent and the buyer of the goods. The commission agent, company B, intermediates in the sale of goods between company A in Hungary and company C in Croatia. Company A issues an invoice to the commission agent company B. The commission agent issues an invoice for the goods to company C. Company A dispatches the goods directly to company C or sends them first to the commission agent and after that to company C. If the commission agent is located in Hungary, he must report the dispatch of goods to Croatia. The value of the goods does not include the provision. In case when the commission agent is located in Croatia, he must report the arrival of goods from Hungary. The value of goods includes a commission. The goods are reported using transaction code 1 in the first sub-field and 2 in the second sub-field.

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4. Operational and financial leasing

Operational leasing

Goods under operational leasing are excluded from Intrastat reporting when their duration was planning to last less than two years. Goods under operational leasing must be included when the contract covers a period exceeding two years. Arrivals and dispatches are reported under transaction code 9 (first sub-field) and 1 (second sub-field) in the field 14 on the Intrastat form. The reference period is the month when the goods arrive or are dispatched (at the commencement of the contract) or the month in which it is obvious that the goods will stay for more than two years. The value of goods that was originally intended for return within two years, and was not returned in that period, is estimated at the time when it is reported for Intrastat. Considering using of goods it allows the depreciation or any other factor that might affect the value, thus the value of the goods is the market value (i.e. price the goods might fetch on the open market with the passing of a two-year period) in the reporting period. If the lessor, upon expiration of the operational leasing transfers the right of ownership to the lessee, who buys off the goods (reference period is the month in which a transfer of ownership rights occurred) - the (estimated) market value of the goods at the moment of the transfer of ownership onto the lessee is reported.

Financial leasing

Financial leasing is reported for Intrastat. Financial leasing is a transaction in which three parties are included: the goods supplier (Supplier), the goods receiver (Lessee) and the payer of the goods costs (Lessor). Direct leasing exists when the supplier and lessor are the same entity. Indirect leasing exists when the leasing company (lessor) purchases the goods from the manufacturer or supplier and subsequently leases the goods to the lessor. When the lessor and lessee are located in the same Member State, and the goods supplier in another Member State, the supplier reports the dispatch of goods, the lessor however the arrival of the goods.

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If the goods supplier and lessor are in the same Member State, the lessee in another Member State, the dispatch of goods is reported by the goods lessor, whereas the lessee reports the arrival of goods. The total value of goods (value of all paid instalments and residual value of goods) is reported, transaction code 1 first sub-field and 4 second sub-field. The reference period is the month in which the goods are received or dispatched (ordinarily the month when the leasing/hire-purchase contract has been concluded).

5. Consignment

If the business entity (PSI) is not registered in the country in which it dispatches the goods to a consignment warehouse without a change of ownership, with the purpose of subsequent sale to a particular buyer, that transaction is reported for Intrastat using transaction code 12. The expressed value is the expected value in case of a sale of the goods at the time of entering the warehouse. Furthermore, the arrival of the goods is reported using transaction code 12, if the goods are stored in the consignment warehouse and remain in the ownership of the business partner who is not registered in the Republic of Croatia, and the goods are intended for subsequent sale to a particular buyer. Subsequent changes of ownership of the goods, which are previously reported in Intrastat using transaction code 12, will not be reported for Intrastat. Company A in Croatia dispatches the goods to a consignment warehouse belonging to company B in Hungary with the intention of selling the goods to a third party. Company B for its account finds a buyer company C in Hungary and sells the goods. Until the sale of goods between companies A and B is completed and until the company finds the buyer company C, the owner of the goods remains a company A. Company A reports the dispatch of goods, company B the arrival of goods upon receiving them at the consignment warehouse. The value of the goods is estimated with regards to the anticipated value upon final sale of the goods. The transaction code is 1 first sub-field and 2 second sub-field. The transaction between companies B and C is not reported because it is considered as a domestic trade. In the event that the stated goods are returned due to an unsuccessful sale, the return of the goods is reported for Intrastat using transaction code 21 and the same value as reported upon arrival.

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6. Triangular trade

Triangular trade covers the transaction of goods, in which at least three business entities are involved from two or more different countries, and at least two of the countries are EU Member States. Only those business entities in the Republic of Croatia that purchase or sell goods to a trading partner (entity responsible for VAT) in another EU Member State report for Intrastat, and when goods cross the Croatian border. The fundamental rule for reporting transactions in triangular trade is that in Intrastat the physical flow of goods is always tracked regardless of the commercial transactions and flow of invoice. Examples:

A) Triangular trade with EU Member states 1) Company A1 from Croatia sells goods to company B in Austria, which in turn sells the goods to another company A2 in Croatia. The physical flow of goods is from company A1 to A2 in Croatia. This is not reported for Intrastat since the goods have not left Croatian territory. 2) Company A1 in Croatia orders goods from company B1 in Germany and the goods are directly delivered to the buyer company C1 in France.

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Company A1 in Croatia does not report for Intrastat because the goods have not transited Croatia. 3) A company in Croatia sells goods to Germany and the goods are delivered to the buyer directly from another company in Croatia (manufacturer). The company that sells (invoices) the goods reports the dispatch of goods to Germany. 4) Company A1 in Croatia sells goods to another company A2 in Croatia. The goods are purchased and directly dispatched from company B1 in Germany to company A2.

Company A1 must report the arrival of goods from Germany for Intrastat, because it purchased the goods from company (manufacturer) B1 in Germany, and not company A2 to whom the goods were delivered. Company B1 from Germany reports dispatch of goods to Croatia. 5) Company A1 in Croatia orders the goods from company B1 in Denmark and the goods are delivered directly from the manufacturer company C1 in Germany.

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The company in Croatia reports the arrival of goods from Germany, whereas the company in Germany reports the dispatch to Croatia. The company in Denmark does not report.

B) Triangular trade involving non-EU countries 1) A company in Croatia orders goods from the USA. The goods are delivered through Germany where import duties are paid (indirect import).

A company in Croatia reports for Intrastat, the arrival of goods from Germany. The import into Germany from the USA is reported for Extrastat on the SAD. 2) The company in Croatia orders the goods from China. The goods are delivered through France, even though import duty is paid in Croatia.

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The company in Croatia does not report for Intrastat, because the goods are cleared through customs and the import duties for the goods are paid in Croatia (Extrastat). 3) A Croatian company sells goods to a company from Slovenia, which receives the goods in Croatia and dispatches them to Albania. The goods exporter from Croatia in this example is the Slovenian company, and as the buyer of the goods fills in the customs documents. There is no reporting for Intrastat since the goods are delivered directly from Croatia to Albania.

7. Rotterdam Effect (Quasi transit)

Quasi transit happens when:

- The goods from a non-Member State are cleared for import in a Member State before being dispatched to another Member State (country of destination) or ili

- The goods to non-Member State are cleared for export in a Member State after being dispatched from another Member State.

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The illustration below shows in what way the place where the single administrative document is lodged is crucial for the reporting on trade flows:

Non Member State

A

Member State at the external frontier of

the EU B

Member State of final

destination/consignment

C

1) Customs clearance in Member State B

Extrastat trade flow

Intrastat trade flow

2) Customs clearance in Member State C

Extrastat trade flow

If the goods are cleared through customs in Member State B, import (SAD) and dispatch (Intrastat) declarations shall be declared in Member State B, whereas in Member State C an arrival within the EU from Member State B is reported.

If the goods are cleared through customs in Member State C, the goods are in transit in Member State B and no reporting is done in Member State B. Member State C reports an import or export for Extrastat (SAD). NEW! NATURE OF TRANSACTION CODE 66 – Arrival of goods from another EU country for further export to third countries NATURE OF TRANSACTION CODE 67 – Dispatch of goods previously imported from a third country into another EU country Example: The Austrian seller sells goods to the buyer in the United States. The goods are physically delivered from Austria to Croatia, the port of Rijeka, in Croatia, and there will be submitted to customs export declaration. For the purposes of customs procedure in Croatia, an Austrian seller has authorized the Croatian shipping company for customs and tax representation. Thus, a quasi export implies that the goods initially have been dispatched from one EU Member State (Austria) to another EU Member State (the state at the external border of the EU - the port of Rijeka in Croatia). Export customs clearance procedure will be carried out in the other EU Member State and the goods will be then exported to a third country.

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Dispatch of goods from Austria to Croatia must be reported to Intrastat as follows:

for Austrian INTRASTAT the dispatch of goods from Austria to Croatia is reported

for Croatian INTRASTAT the arrival of goods from Austria is reported using nature of transaction code 66 (NEW!)

For the purpose of compiling INTRASTAT report in Croatia, Croatian shipping company will use:

invoice issued by the Austrian company delivery term in accordance with the invoice nature of transaction 66 (Arrival of goods from another

EU country for further export to third countries) the invoice value is the value of goods shown on the

invoice the statistical value is the value of goods at the Croatian

border, and is calculated in accordance with the delivery terms.

8. Processing

It is necessary to differentiate between processing and repairs Processing covers operations (transformation, construction, assembly enhancement, renovation, modification, conversion) with the objective of producing a new or a significantly improved item. This does not necessarily involve a change in the product classification. Here are some examples of processing: assembling/renewing goods following transport; preservation (e.g. addition of preservatives); treatment (e.g. against parasites and rust); mixing products of various qualities for the purpose of manufacturing a product with new quality; bottling liquids (e.g. wine from barrels); transforming textiles into a product (e.g. clothing, handbags, curtains); diluting or concentrating liquids (e.g. juices). A repair means the restoration of goods to their original function or condition. The objective of the operation is simply to maintain the goods in working order; this may involve some rebuilding, replacement or enhancements but does not change the nature of the goods in any way. The delivery of goods for or following processing under contract is reported for Intrastat. The delivery of goods for or following repairs is not reported for Intrastat.

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EXAMPLES OF SOME CASES OF PROCESSING

I. A simplified processing activities - includes only two business entities Company A1 in Croatia sends the goods for processing to company B1 in Hungary. After the processing, company B1 returns the processed goods to company A1. Processing is carried out for the account of company A1.

Company A1 reports dispatch of goods for processing to Hungary using transaction code 41, and the arrival of goods following processing from Hungary using transaction code 51 (statistical value = gross value). Company B1 reports arrival of goods for processing from Croatia using transaction code 41, and the dispatch of goods following processing to Croatia using transaction code 51 (statistical value = gross value). II. Processing activities in which a number of business entities are involved

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A) Goods are returned to the country from which they were originally dispatched for processing 1) Company A1 in Croatia sends the goods for processing to Hungary to company B1. Following processing, company B1 returns the processed goods to company A2 in Croatia. Processing is carried out for the account of company A1.

Company A1 reports dispatch of goods for processing to Hungary using transaction code 41, and the arrival of goods following processing from Hungary using transaction code 51 (statistical value = gross value). Company B1 reports arrival of goods for processing from Croatia using transaction code 41, and the dispatch of goods following processing to Croatia using transaction code 51 (statistical value = gross value). Company A2 does not report for Intrastat (national transaction between A1 and A2). 2) Company A1 in Croatia sends the goods for processing to Hungary to company B1, which subsequently sends them for further processing to company B2 in Hungary. Following processing, company B2 returns the processed goods to company A1 in Croatia. B1 and B2 charge company A1 for the service.

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Company A1 reports dispatch of goods for processing to Hungary using transaction code 41, and the arrival of goods following processing from Hungary using transaction code 51 (statistical value = gross value). Company B1 reports arrival of goods for processing from Croatia using transaction code 41, whereas company B2 dispatch of goods following processing to Croatia (gross value), transaction code 51. 3) Company A1 in Croatia sends the goods for processing to Hungary to company B1, which subsequently sends them for further processing to company B2 in Hungary. Company B2 is the sub-contractor of company B1 and conducts the processing activities for the account of company B1. Following processing, company B2 returns the processed goods to company A1 in Croatia.

Company A1 reports dispatch of goods for processing to Hungary using transaction code 41, and the arrival of goods following processing from Hungary using transaction code 51 (statistical value = gross value). Company B1 reports arrival of goods for processing from Croatia using transaction code 41, and the dispatch of goods following processing to Croatia using transaction code 51. Company B2 does not report for Intrastat (national transaction between B1 and B2). B) Goods are not returned to the country from where they were originally dispatched for processing 1) Processing is carried out for the account of the seller 1.1) Company A1 in Croatia sells goods to company C1 in Germany. Company A1 dispatches the goods for processing to company B1 in Italy, which carries out the processing for the account of company A1. Following processing, company B1 dispatches the goods to the buyer, company C1 in Germany.

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Company A1 reports the dispatch to Italy using transaction code 42 (statistical value = value of goods before processing). Company B1 reports the arrival of goods for processing from Croatia using transaction code 42 (statistical value = value of goods before processing) and the dispatch of goods following processing to Germany, using transaction code 52 (statistical value = gross value). Company C1 reports the arrival of goods from Italy, the gross value using transaction code 1 (first sub-field) - transfer of ownership against compensation. 1.2) Company A1 in Croatia sells goods to company B in Hungary. Company A1 dispatches the goods for processing to company A2 in Croatia, which performs the processing for the account of company A1. Following processing, company A2 dispatches the goods to buyer, company B in Hungary. Company A2 charges company A1 for the costs of processing. Company A1 reports the dispatch of goods to Hungary using transaction code 1 (first sub-field). The value of goods is the value company A1 charges company B. Company B reports the arrival of goods from Croatia using transaction code 1 (first sub-field). The value of goods is the value charged by A1. Company A2 does not report for Intrastat. 1.3) Company A1 in Croatia sells goods to company B2 in Hungary. Company A1 dispatches the goods for processing to company B1 in Hungary, which processes the goods for the account of company A1. Following processing, company B1 dispatches the goods to the buyer, company B2 in Hungary. Company A1 has a representative in Hungary (company A1*). Company A1 reports the dispatch of goods to Hungary, using transaction code 1 (first sub-field). Company A1* reports the arrival of goods from Croatia, the net value, the value of goods before processing using transaction code 1 (first sub-field). Companies B1 and B2 in Hungary do not report for Intrastat.

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2) Processing is carried out for the account of the buyer 2.1) Company C1 in Croatia purchases goods from company A1 in Germany. Company C1 requests company A1 to send the goods for processing to company B1 in Hungary. Company B1 performs the processing of the goods for the account of company C1. Following processing, company B1 dispatches the goods to the buyer, company C1 in Croatia.

Company A1 reports the dispatch of goods to Hungary, the value before processing using transaction code 11. Company B1 reports the arrival of goods for processing from Germany, transaction code 42 (value of goods before processing) and dispatch of goods following processing to Croatia, using transaction code 52, the gross value of goods following processing. Company C1 reports the arrival of goods from Hungary, the gross value, using transaction code 11(NEW!). 2.2) Company B1 in Croatia purchases the goods from company A1 in Hungary. The company B1 requests company A1 to send the goods for processing to company A2 in Hungary, for the account of company B1. Following processing, company A2 dispatches the goods to the buyer, company B1 in Croatia.

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Company A2 reports the dispatch of goods to Croatia, the gross value using transaction code 1 (first sub-field). Company B1 reports the arrival of goods from Hungary, the gross value using transaction code 1 (first sub-field). Company A1 does not report for Intrastat. 2.3) Company B2 in Croatia purchases the goods from the company A in Hungary. Company B2 requests company A to dispatch the goods for processing to company B1 in Croatia, which performs the processing for the account of company B2. Following processing, company B1 sends the goods to the buyer, company B2 in Croatia. Company B1 charges company B2 for the costs of processing. Company A reports the dispatch of goods to Croatia, the value of goods before processing using transaction code 1 (first sub-field). Company B2 reports the arrival of goods from Hungary, the value of the goods before processing using transaction code 1 (first sub-field). Company B1 in Croatia does not report for Intrastat.

9. Return and replacemet of goods

Returned goods and replacement deliveries are to be included in Intrastat. The reference period is the month when the return or replacement delivery took place. Transaction code 2 is used when the original goods movement was recorded with code 1, and the value of the returned or replacement goods must be provided. Return of goods and replacement deliveries are reported in the direction the goods are sent, i.e. goods received as arrivals and goods sent as dispatches: - the business entity that return goods, must report the return as

a dispatch. If the business entity receives a replacement delivery, it must be reported as an arrival.

- A business entity that receives returned goods must report the return as an arrival. If the business entity sends the replacement delivery, it must be declared as a dispatch.

The following transactions are covered: - Return of goods - Replacement for returned goods- Replacement (e.g. under guarantee) for goods not being returned. Return of goods of which the original transaction was reported with transaction codes 3, 7, 8 and 9, must be declared again with the same transaction codes. On the other hand, the return of goods with the previous transaction code 4 should be reported using code 5.

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Role of tax data in Intrastat system Important role in the Intrastat system have tax data, acquired by Tax Administration from the VAT, VAT-S and VAT-ZP (recapitulative statement) form to Croatian Bureau of Statistics on a company level (PIN number) in accordance with European legislation for Intrastat and Tax EU directive. Tax data in the Intrastat system are used to determine the exemption threshold values in the Intrastat system, determination of the new PSI's during the reporting year, assessment of response and assessment of the value of trade below the exemption threshold, updating the Intrastat register and credibility control of Intrastat data. Credibility control of Intrastat data is performed by summarizing and comparing Intrastat and tax data on a PIN, flow and period level. In case that there is a significant difference between the tax and Intrastat data the company is contacted to verify the accuracy of data and ascertain the reason for the deviation. If the data on the Intrastat is not correct, the PSI is required to correct the submitted Intrastat data by delivering the subsitute form. Differences between Intrastat and TA data on acquisitions and supplies of goods to / from the EU may arise from the following methodological reasons: a) The flow of transactions Tax data follow financial transaction, while Intrastat follows the movement of goods. b) VAT number There is a possibility that the goods are imported from non-EU countries, but the invoice is issued by a company with VAT number of some Member State. In that case, the data for the purposes of trade statistics are retrieved from Customs Declarations and classified in Extrastat (statistics on the trading in goods with non-member countries), while for the Tax Administration on the VAT form is registered an acquisition of goods from EU country which assigned the VAT number to a company that issued the invoice. c) Reporting period Dispatch of goods and invoicing do not need to occur always in the same month. Goods can be physically dispatched in one month, and the invoice issued later in the second month after the end of the complete delivery of the goods. PSI will submit a report on arrival or dispatch of goods for Intrastat eg for July and report the acquisition or supply of the same transaction to the Tax Administration for August. d) Coverage The statistics on the trading in goods does not include services but only flows relating to the movement of goods. Repairs, selling goods via Internet, temporary movement of goods less than two years, specially designed software for a particular customer, advertising material and commercial samples are not included.

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According to the methodological guidelines of the UN and Eurostat, CBS monitors data on processing activities on a gross basis. With regard to imports / arrivals of goods for processingthe value of the goods received for processing is shown on the Intrastat form. The value of the goods following processing on the Intrastat form is the total value of goods which includes the original value of the received goods, the cost of processing service and materials incorporated. For the purposes of the Tax Administration does not report the import or arrival of goods for processing is not reported, but only the processing service value. e) Calculation of value for Intrastat and tax base For Intrastat is to be reported the value of goods that includes only the transport and insurance costsup to the Croatian border. With regard to the calculation of the tax base in the value of acquired assets the excise taxes are included which the acquirer of the goods which are the subject to excise duties within the European Union is obliged to pay or has paid.

f) Exchange rate The value on the invoice shown in foreign currency, when reporting the invoice value is converted in kuna using the first valid midpoint exchange rate list for the particular month, that is month for which the data are reported. When reporting the tax data, if the elements for determining the tax base, except when importing goods, are determined in foreign currency, for the conversion in kuna the midpoint exchange rate of the Croatian National Bank is used on the day of occurrence of obligation of VAT calculation.

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Tehnical part of CA Reporting in Customs Intrastat system

The PSIs may submit the Intrastat form to Customs Intrastat system only in xml electronic message format. The PSI might generate XML format of Intrastat form from: a) An excel file of Intrastat form For PSIs with fewer monthly items an Excel format of the Intrastat form has been made. Data are entered manually in Excel Intrastat form. After filling in, the XML format of Intrastat form is generated from an Excel Intrastat form. An Excel Intrastat form will be available on the Intrastat webpage: http://www.dzs.hr/Hrv/intrastat/intrastat.htm b) Custom applications PSI may use its own application for forming and sending the Intrastat form. All custom applications must contain defined field structure of Intrastat form, formal field control and the default XML schema. The techical manual for PSIs of Intrastat System and the documentation needed to develop Intrastat Custom applications are available on the Intrastat webpage: http://www.dzs.hr/Hrv/intrastat/intrastat.htm XML format is submitted electronically using the G2B service of the Customs Administration. G2B service is used for the exchange of electronic documents between the entrepreneurs and the Information System of the Customs Administration. It has been technologically implemented as a web service using the Internet as a communication channel. For electronic submission of the Intrastat form using the G2B service PSIs must provide the necessary software and technical support. Technical manual for accessing and using the G2B service is available on the website: http://www.carina.hr/e_carina/G2B.aspx The technical information regarding Intrastat reporting and testing support (delivery of test Intastat form), PSIs may get at the Customs Administration, phone number (042) 234-255 or may send their enquiries by e-mail to the address: Intrastat.helpdesk@carina.hr .

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Annex1. Application form for the Intrastat

41

42

Annex 2. Nature of transactions codes

A B

1 Transactions involving actual or intended transfer of ownership from residents to non-residents against financial or other compensation (except the transactions listed under 2, 7 and 8)

1 Outright purchase/sale

2 Supply for sale on approval or after trial, for consignment or with the intermediation of a commission agent

3 Barter trade (compensaton in kind)

4 Financial leasing (hire-purchase) (1)

9 Other

2 Return and replacement of goods free of charge after registration of the original transaction

1 Return of goods

2 Replacement for returned goods

3 Replacement (e.g. under warranty) for goods not being returned

9 Other

3 Transactions involving transfer of ownership without financial or in kind compensation (e.g. aid shipments)

0

Transactions involving transfer of ownership without financial or in kind compensation (e.g. aid shipments

4 Operations with a view to processing (2) under contract (no transfer of

ownership to the processor)

1 Goods expected to return to the initial Member State of dispatch/ country of export

2 Goods not expected to return to the initial Member State of dispatch/ country of export

5 Operations following processing under contract (no transfer of ownership to the processor)

1 Goods returning to the initial Member State of dispatch

2 Goods not returning to the initial Member State of dispatch

6 Particular transactions recorded for national purposes

6 Arrival of goods from another EU country for further export to third countries

7 Dispatch of goods previously imported from a third country into another EU country

7 Operations under joint defence projects or other joint intergovernmental production programs

0 Operations under joint defence projects or other joint intergovernmental production programs

8 Transactions involving the supply of building materials and technical equipment under a general construction or civil engineering contract for which no separate invoicing of the goods is required and an invoice for the total contract is issued

0

Transactions involving the supply of building materials and technical equipment under a general construction or civil engineering contract for which no separate invoicing of the goods is required and an invoice for the total contract is issued

9 Other transactions which cannot be classified under other codes

1 Hire, loan, and operational leasing longer than 24 months

9 Other transactions which cannot be classified under other codes

9 Other

(1)

Financial leasing covers operations where the lease instalments are calculated in such a way as to cover all or virtually all of the value of the goods. The risks and rewards of ownership are transferred to the lessee. At the end of the contract the lessee becomes the legal owner of the goods.

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(2) Processing covers operations (transformation, construction, assembling,enhancement, renovation..) with the objective of

poducing a new or really improved item. This does not necessarily involve a change in the product classification. Processing activities on a processor's own account are not covered by this item and should be registered under item 1 of column A.

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Annex 3. What is reported for Intrastat

purchase or sale of goods

goods intended for processing under contract

goods returned following processing under contract, i.e. once processing has been finished goods that are received, dispatched and exeptionally returned as part of financial leasing

goods that are dispatched and received as part of claims for inadequate consequences of a sales contract, including the return of damaged/defective goods and goods dispatched and received as replacements for damaged/defective goods

goods delivered free-of-charge (e.g. donations), if they are not free-of-charge commercial samples or promotional materials and other goods exempted from reporting

goods (building materials and technical equipment) delivered as an integral part of a general construction or civil engineering contract

goods delivered as part of a service, if the VAT applies to goods as goods procured from or delivered to another Member State

goods received or delivered as part of a delivery to a central and distribution warehouses

goods dispatched or received in a consignment warehouse

goods received or dispatched for warehousing, if the warehousing period exceeds 2 years, and the goods are later returned to the owner

goods received or dispatched for temporary use, if the excepted usage period exceeds 2 years (e.g. the goods are lent free-of-charge for a period exceeding 2 years or the goods for operational leasing exceeding 2 years)

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Annex 4. List of exemptions (A) Monetary gold; (B) Means of payment which are legal tender and securities, including means which are payments for

services such as postage, taxes, user fees; (C) Goods for or following temporary use (e.g. hire, loan, operational leasing), provided all the

following conditions: - No processing is or was planned or carried out, - The expected duration of temporary use was or is not intended to be longer than two years - The dispatch/arrival has not to be declared as supply/acquisition for VAT purposes;

(D) Goods moved between: - A Member State and its territorial enclaves in other Member States, and - The host Member State and territorial enclaves of other Member States or international

organisations. Territorial enclaves include embassies and national armed forces stationed outside the territory of the country.

(E) Goods used as carriers of customised information, including software; (F) Software downloaded from the Internet; (G) Goods supplied free-of-charge which are themselves not the subject of a commercial

transactions, such as: - Advertising material, - Commercial samples;

(H) Goods for and after repair and replacement parts that are incorporated in the framework of the repair and replaced defective parts.

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Annex 5. Field description of the Intrastat form

Field number

Field name Lenght of the field

Type of the field

0 The flow of goods 1 char

1a Identification number of PSI

13 (2+11) char

1b Name of PSI 200 varchar

1c Address of PSI 200 varchar

2 Reference period GGGG-MM date

3 Total No of items 5 num (format 99999)

4a ID number of TPD 20 (2+18) char

4b Name of TPD 200 varchar

4c Address of TPD 200 varchar

4d Country of TPD 100 varchar

5 Data on Customs Administration

300 fixed field

6 Type of form 1 char

7 Reference number 10 num (format YY99999999)

8 Date DD.MM.GGGG date

9 Item 5 num (format 99999)

10 CN code (Commodity code)

8 char

11 Description of goods 400 varchar

12 Country of destination/consignment

2 char

13 Delivery terms/Place of delivery

4 (3+1) char

14 Nature of transaction 2 (1+1) char

15 Mode of transport 1 char

16 Country of origin 2 char

17 Net mass 9,3 dec (format 999999999,999)

18 Quantity in supplementary unit

12,3 dec (format 999999999999,999)

19 Invoiced value 12 num (format 999999999999)

20 Statistical value 12 num (format 999999999999)

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Annex 6. Geonomenclature

ISO alpha-2

Name of the country ISO

alpha-2 Name of the country

AD Andorra CH Switzerland, including the German territory of Büsingen and the Italian municipality Campione d'Italia

AE United Arab Emirates CI Côte d’Ivoire

AF Afghanistan CK Cook Islands

AG Antigua and Barbuda CL Chile

AI Anguilla CM Cameroon

AL Albania CN China

AM Armenia CO Colombia

AO Angola CR Costa Rica

AQ Antarctica CU Cuba

AR Argentina CV Cape Verde

AS American Samoa CW Curaçao

AT Austria CX Christmas Island

AU Australia CY Cyprus

AW Aruba CZ Czech Republic

AZ Azerbaijan DE Germany, including the island of Heligoland; excluding the territory of Büsingen

BA Bosnia and Herzegovina DJ Djibouti

BB Barbados DK Denmark

BD Bangladesh DM Dominica

BE Belgium DO Dominican Republic

BF Burkina Faso DZ Algeria

BG Bulgaria EC Ecuador

BH Bahrain EE Estonia

BI Burundi EG Egypt

BJ Benin EH Western Sahara

BL Saint Barthélemy ER Eritrea

BM Bermuda ES Spain, including the Balearic Islands and the Canary Islands; excluding Ceuta i Melilla

BN Brunei Darussalam ET Ethiopia

BO Bolivia, Plurinational State of FI Finland, including Åland Islands

BQ Bonaire, Sint Eustatius and Saba FJ Fiji

BR Brazil FK Falkland Islands

BS Bahamas FM Mikronesia, Federated States of

BT Bhutan FO Faroe Islands

BV Bouvet Island FR France, including Monaco and French overseas departments (French Guiana, Guadeloupe, Martinique, Mayotte and Réunion) and French northern part of St Martin

BW Botswana

BY Belarus

BZ Belize

CA Canada GA Gabon

CC Cocos Islands (or Keeling Islands) GB United Kingdom (Great Britain, Northern Island, Channel Islands and Isle of Man)

CD Congo, Democratic Republic of GD Grenada

CF Central African Republic GE Georgia

CG Congo GH Ghana

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ISO alpha-2

Name of the country ISO

alpha-2 Name of the country

GI Gibraltar LT Lithuania

GL Greenland LU Luxembourg

GM Gambia LV Latvia

GN Guinea LY Libya

GQ Equatorial Guinea MA Morocco

GR Greece MD Moldova, Republic of

GS South Georgia and South Sandwich Islands

ME Montenegro

GT Guatemala MG Madagascar

GU Guam MH Marshall Islands

GW Guinea-Bissau MK Former Yugoslav Republic of Macedonia

GY Guyana ML Mali

HK Hong Kong MM Myanmar

HM Heard Island and McDonald Islands MN Mongolia

HN Honduras MO Macao

HR Croatia MP Northern Mariana Islands

HT Haiti MR Mauritania

HU Hungary MS Montserrat

ID Indonesia MT Malta, including Gozo and Comino

IE Ireland MU Mauritius

IL Israel MV Maldives

IN India MW Malawi

IO British Indian Ocean Territory MX Mexico

IQ Iraq MY Malaysia

IR Iran, Islamic Republic of MZ Mozambique

IS Iceland NA Namibia

IT Italy, including Livigno; excluding the municipality of Campione d’Italia

NC New Caledonia

JM Jamaica NE Niger

JO Jordan NF Norfolk Island

JP Japan NG Nigeria

KE Kenya NI Nicaragua

KG Kyrgyz, Republic NL Netherlands

KH Cambodia NO Norway, including Svalbard Archipelago and Jan Mayen Island

KI Kiribati NP Nepal

KM Comoros NR Nauru

KN St Kitts and Nevis NU Niue

KP Korea, Democratic People’s Republic of

NZ New Zealand

KR Korea, Republic of OM Oman

KW Kuwajt PA Panama

KY Cayman Islands PE Peru

KZ Kazakhstan PF French Polynesia

LA Lao People’s Democratic Republic PG Papua New Guinea

LB Lebanon PH Philippines

LC St Lucia PK Pakistan

LI Lichtenstein PL Poland

LK Sri Lanka PM St Pierre and Miquelon

LR Liberia PN Pitcairn

LS Lesotho PS Occupied Palestinian Territory

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ISO alpha-2

Name of the country ISO

alpha-2 Name of the country

PT Portugal, including Azores and Madeira

UM United States Minor Outlying Islands

PW Palau US United States, including Puerto Rico

QA Qatar UY Uruguay

QP High seas UZ Uzbekistan

QR Stores and provisions within the framework of intra-EU trade

VA Holy See (Vatican City State)

QV Countries and territories not specified within the framework of intra-EU trade

VC St Vincent and the Grenadines

RO Romania VE Venezuela, Bolivarian Republic of

RU Russian Federation VG Virgin Islands, British

RW Rwanda VI Virgin Islands, United States

SA Saudi Arabia VN Viet Nam

SB Solomon Islands VU Vanuatu

SC Seychelles WF Wallis and Futuna

SD Sudan WS Samoa

SE Sweden XC Ceuta

SG Singapore XK Kosovo

SH Saint Helena, Ascension and Tristan da Cunha

XL Melilla

SI Slovenia XS Serbia

SK Slovakia YE Yemen

SL Sierra Leone YT Mayotte

SM San Marino ZA South Africa

SN Senegal ZM Zambia

SO Somalia ZW Zimbabwe

SR Suriname

SS South Sudan

ST Sao Tome and Principe

SV El Salvador

SX Sint Maarten (Dutch part)

SY Syrian Arab Republic

SZ Swaziland

TC Turks and Caicos Islands

TD Chad

TF French Southern Territories

TG Togo

TH Thailand

TJ Tajikistan

TK Tokelau

TL Timor-Leste

TM Turkmenistan

TN Tunisia

TO Tonga

TR Turkey

TT Trinidad and Tobago

TV Tuvalu

TW Taiwan

TZ Tanzania, United Republic of

UA Ukaine

UG Uganda

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Annex 7. Delivery terms

Šifra Incoterms – official ICC/ECE rules in Geneva Place

EXW ex-works Location of works

FCA free carrier Agreed place

FAS free alongside ship Agreed port of loading

FOB free on board Agrred port of loading

CFR cost and freight (C & F) Agreed port of destination

CIF cost, insurance and freight Agreed port of destination

CPT carriage paid to Agreed port of destination

CIP carriage and insurance paid to Agreed port of destination

DAF delivered at frontier Agreed place of delivery at frontier

DES delivered ex ship Agreed port of destination

DEQ delivered ex-quay After customs clearance, agreed port

DDU delivered duty unpaid Agreed place of destination in arriving country

DAT delivered at terminal

Agreed place of destination

DAP delivered at place Agreed place of destination

DDP delivered duty paid Agreed place of delivery in arriving country

XXX delivery terms other than the above Delivery terms precisely stated in the contract

Annex 8. Place of delivery

Code Meaning

1 Teritorry of the Republic of Croatia

2 Teritorry of a Member State

3 Teritorry outside the EU

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Annex 9. Mode of transport

Code Description

1 Sea transport (including wagons, motor vehicles, trailers, semi-trailers and boats for transferring)

2 Rail transport (including vans which are transported using rail transport)

3 Road transport

4 Air transport

5 Postal consignment

7 Fixed transport installations (pipelines, high-voltage cables)

8 Inland waterway transport

9 Own propulsion (imported or exported means of transport which cross the border using own propulsion, e.g. aircraft, vans, ships, etc.)

Annex 10. Calculation of statistical value according to delivery terms - Incoterms (simplified)

Delivery terms - Incoterms

Statistical value Dispatches

Correlation SV/IV

Statistical value Arrivals

Correlation SV/IV

EXW, FCA Invoiced value + transport costs incurred in Croatia + insurance costs incurred in Croatia

SV>IV Invoiced value + transport costs incurred abroad + insurance costs incurred abroad

SV>IV

FAS Invoiced value SV=IV Invoiced value + transport costs incurred abroad + insurance costs incurred abroad

SV>IV

FOB Invoiced value SV=IV

Invoiced value + transport costs incurred abroad + insurance costs incurred abroad

SV>IV

CFR Invoiced value - transport costs incurred abroad + insurance costs incurred in Croatia

SV<IV Invoiced value - transport costs incurred in Croatia + insurance costs incurred abroad

SV<IV

CIF Invoiced value - transport costs incurred abroad - insurance costs incurred abroad

SV<IV Invoiced value SV=IV

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Delivery terms - Incoterms

Statistical value Dispatches

Correlation SV/IV

Statistical value Arrivals

Correlation SV/IV

CPT Invoiced value - transport costs incurred abroad - insurance costs incurred abroad

SV<IV Invoiced value - transport costs incurred in Croatia + insurance costs incurred abroad

SV<FV2

CIP Invoiced value - transport costs incurred abroad - insurance costs incurred abroad

SV<IV Invoiced value - transport costs incurred in Croatia - insurance costs incurred in Croatia

SV<IV

DAF (frontier of a country of exporter)

Invoiced value

SV=IV

Invoiced value + transport costs incurred abroad + insurance costs incurred abroad

SV>IV

DAF (frontier of a country of importer)

Invoiced value - tranport costs incurred abroad - insurance costs incurred abroad

SV<IV Invoiced value SV=IV

DAT Invoiced value- tranport costs incurred abroad - insurance costs incurred abroad

SV<IV Invoiced value SV=IV

DAP Invoiced value - transport costs incurred abroad - incurance costs incurred abroad

SV<IV Invoiced value - transport costs incurred in Croatia - insurance costs incurred in Croatia

SV<IV

DEQ, DES Invoiced value - transport costs incurred abroad - insurance costs incurred abroad

SV<IV Invoiced value SV=IV

DDU Invoiced value - transport costs incurred abroad - insurance costs incurrd abroad

SV<IV Invoiced value - transport costs incurred in Croatia- insurance costs incurred in Croatia

SV<IV

DDP Invoiced value - transport costs incurred abroad - insurance costs incurred abroad - customs clearance fees

SV<IV Invoiced value - transport costs incurred in Croatia - insurance costs incurred in Croatia - customs clearance fees

SV<IV

2 Depending on the place of delivery in the Republic of Croatia.