.

1.
Annex I:
Annual Report on the implementation of KPCS in accordance with Section VI, paragraph
11 of the KPCS document
A.Institutional Framework
In this section, up-to-date information on the designated authorities or bodies responsible for
implementing the provisions of the KPCS should be provided, in particular on:
1. The Authority with responsibility for the implementation of the KPCS, including the full
address and the names of contact persons (in accordance with Section V (a)).
*Ministry of Economy, Labour and Entrepreneurship of the Republic of Croatia
10000 Zagreb
Ulica grada Vukovara 78
Croatia
Tonko Dolezal, Senior Expert Advisor
*According to the Act on the Organization and Jurisdiction of the Ministries and other State
Administration bodies (OG 150/11) that entered into force on December 22nd 2011, the legal
successor for the Kimberley Process Issues in Republic of Croatia is:
State Office for Trade Policy
10000 Zagreb
Ulica grada Vukovara 78
Croatia
Tonko Dolezal, Senior Expert Advisor
Ministry of Finance
Customs Administration of the Republic of Croatia
Customs Office Zagreb, Customs Branch Office - Zagreb Airport
Zagreb Airport, Pleso bb
Željko Kralj, Head of the Customs Branch Office- Zagreb Airport
2. The Import and Export Authority, including the full address and the names of contact persons
(in accordance with Section IV (b)).
Ministry of Finance
Customs Administration of the Republic of Croatia
Customs Office Zagreb, Customs Branch Office - Zagreb Airport
Željko Kralj, Head of the Customs Branch Office - Zagreb Airport
Zagreb Airport, Pleso bb
Phone: +385 1 456 21 45
Fax: +385 1 456 25 45
E-mail: zeljko.kralj@carina.hr
*Ministry of Economy, Labour and Entrepreneurship of the Republic of Croatia

2.
10000 Zagreb
Ulica grada Vukovara 78
Croatia
Tonko Dolezal, Senior Expert Advisor
*According to the Act on the Organization and Jurisdiction of the Ministries and other State
Administration bodies (OG 150/11) that entered into force on December 22nd 2011, the legal
successor for the Kimberley Process Issues in Republic of Croatia is:
State Office for Trade Policy
Ulica grada Vukovara 78
10000 Zagreb, Croatia
Tonko Dolezal, Senior Expert Advisor
Phone: +385 1 610 63 98
Fax: +385 1 610 91 14
E-mail: tonko.dolezal@mingorp.hr
Based on a Recommendation – reply is optional:
In addition, information might be provided on whether an official coordinator to deal with the
implementation of the KPCS been appointed, as suggested by Recommendation No. 1.
B.Legal Framework
In this Section, a confirmation of the legislation in place for the implementation of the KPCS
should be provided, with particular reference to:
1. The laws and regulations enacted or amended for the implementation of the Kimberley Process
(Section IV (d)), in particular the specific legislative or administrative provisions for
- Export and import of rough diamonds
Regulation on Import and Export Control for Rough Diamonds (Official Gazette No. 97/03,
142/03, 176/04, 14/06, 90/07, 64/08 and 61/09)
- Issuance of certificates
Regulation on Import and Export Control for Rough Diamonds (Official Gazette No. 97/03,
142/03, 176/04, 14/06, 90/07, 64/08 and 61/09)
- Internal controls
Regulation on Import and Export Control for Rough Diamonds (Official Gazette No. 97/03,
142/03, 176/04, 14/06, 90/07, 64/08 and 61/09)
Customs Act (Official Gazette No. 78/99, 117/99, 73/00, 92/01, 47/03, 140/05, 138/06, 60/08 and
45/09 and 56/10)
- Penalties introduced for individuals and companies contravening diamond laws and
regulations
Trade Act (Official Gazette No. 87/08, 116/08 and 114/11)

3.
Customs Act (Official Gazette No. 78/99, 117/99, 73/00, 92/01, 47/03, 140/05, 138/06, 60/08 and
45/09 and 56/10)
Criminal Code (Official Gazette No. 110/97, 27/98, 50/00, 129/00 51/01, 113/03, 190/03, 105/04 71/06,
110/07, 152/08, 76/09, 80/11 and 121/11)
- Collection and exchange of official production, import and export data
Regulation on Import and Export Control for Rough Diamonds (Official Gazette No.97/03,
142/03, 176/04, 14/06, 90/07, 64/08 and 61/09)
2. Information on changes of legislation that have occurred since the last annual report, including
the text of any new legislation adopted (if any).
N/A
C.Import and Export Regime
In this section, an overview should be given of how the undertakings in the KPCS on the
international trade in rough diamonds (Sections II and III) are implemented. The overview may
also refer to the Recommendations set out for the Export and Import Process. It should also refer
to the issuance and receipt of Kimberley Process certificates by a Participant. In particular, the
following questions might be addressed:
Outgoing shipments
- What is the procedure for issuing KP certificates?
(Section II (b))
The certificates for export of rough diamonds are issued by the Ministry of Economy, Labour
and Entrepreneurship to which the application for issuance of export certificates are
submitted. The application has to be submitted with the following data:
1. title and headquarters of the company, i.e. name and residence of the natural person;
2. identification number
3. country of origin
4. country of destination
5. number of parcels
6. carat weight
7. value in US$
8. HS code
9. term of import/export
The Ministry is obliged to issue the certificate within fifteen days from the date of the duly
submitted application.
The issued certificate can not be transferred to any other legal or natural person.
The Ministry shall issue the certificate to the exporter if the following is ascertained:

4.
1. The exporter has provided evidence that the rough diamonds for which the certificate is
requested, have been imported in accordance with provisions of the Regulation,
2. The other data, necessary for issuing of the certificate are authentic and accurate,
3. The rough diamonds have been properly shipped for admittance in the territory of the
participant, and
4. The rough diamonds are shipped in tamper proof container.
The validity date of the export certificate issued in the Republic of Croatia shall not exceed
sixty days from the issuing date.
In case the rough diamonds have not been exported within that period the exporter is due to
send back the unused certificate to the Ministry.
The Customs Authority shall authorize the certificate if the above conditions have been met, or
withhold the shipment in case the above conditions have not been met.
The Customs Authority shall supply the exporter with the verified copy of the certificate.
The exporter is due to keep all the copies of the document for at least five years.
Provided the negligence in meeting the above conditions has been ascertained by the Ministry
or the Customs Authority, occurred out of ignorance or without intention or as a result of
action by any other competent body in exercising their duties, the shipment may be released
and the procedure of issuance and verification of the certificate of the Republic of Croatia
pursued, however not until necessary additional measures have been undertaken for the
purpose of providing the fulfilment of the requirements.
The Customs Branch Office shall deny the certificate verification provided they find out that
the contents of the tamper proof container does not comply with the data listed in the
corresponding certificate and that the tamper proof container with the rough diamonds shall
subsequently be sealed .
The Ministry shall within 30 days from the date of receipt of the request for issuing of the
certificate notify the competent body of the participant, issuing or verifying the shipment
certificate, about the non-compliance with the conditions.
- Does the KP certificate fulfill the security features and requirements set out in Annex I of
the KPCS document and as per the attached checklist?
(Section II (c))?
Certificate of the Republic of Croatia meets all the safety requirements of Annex I of the
KPCS.
- What evidence does an exporter have to provide in order to prove that the rough diamonds
being exported have been handled in accordance with the KP and are not conflict
diamonds?
(Section IV (a) and Recommendation 18)?
Export of rough diamonds from the customs territory of the Republic of Croatia is permitted
provided it is accompanied by the certificate issued by Ministry of Economy, Labour and
Entrepreneurship, the rough diamonds are sealed in a tamper proof container and the seal on
the container placed by the participant on export of the goods remains intact and provided the
certificate contains clear and visible designation of the consignee.

5.
When submitting a request for the export of rough diamonds, the exporter must provide
evidence to the Ministry of Economy, Labour and Entrepreneurship that the rough diamonds
are not conflict diamonds, i.e. were imported into the Republic of Croatia in accordance with
KPCS rules (accompanied by the certificate issued by the exporting country’s competent body
at the time of import into the Republic of Croatia). The Republic of Croatia is not a producer;
it is only an importer of rough diamonds.
- How many Kimberley Process certificates were issued? To which Participants were the
KP certificates issued actually sent?
No export certificates were issued in 2011.
Based on Recommendations – reply is optional:
- Are rough diamonds sealed in a tamper proof container together with the Certificate or a
duly authenticated copy?
(Recommendation 19)
The rough diamond parcels are placed in tamper proof containers which are special plastic
packages secured with the official Croatian Customs seal.
- Is the exporting authority sending advance notice of shipments by e-mail to the relevant
Importing Authority containing information on the carat weight, value, country of origin
or provenance, importer and the serial number of the Certificate?
(Recommendation 19)
N/A
- Does the Exporting Authority record all details of rough diamond shipments on a
computerized database?
(Recommendation 20)
Incoming shipments
- Describe the sequence of events for an incoming shipment from the physical entering of
the shipment in your territory to the validation of the Certificate, with particular emphasis
on the following questions
Verification of KP requirements at import are made by the Customs Administration of the
Republic of Croatia. The only entry point for rough diamonds is the Customs Branch Office
Zračna luka “Airport”. All Croatian customs posts are connected, and other posts are aware of
the conditions applying to rough diamond trade as per Regulation. Upon import, the shipment
and certificate are submitted to the Customs Branch Office of the Zagreb Airport, which, in
addition to regular customs controls, conducts the necessary KP verification checks for the
import and export of rough diamonds on the customs territory of the Republic of Croatia (KP
certificate, tamper proof container and seal, indication of the recipient, content of the
shipment). The importer is responsible for proper transport of rough diamonds.

6.
- Is confirmation of receipt sent to the relevant Exporting Authority
(Section III (b))?
Yes. The Ministry of Economy, Labour and Entrepreneurship submits the confirmation of the
receipt to the competent authority of the exporting country that issued or approved the delivery
certificate. Import confirmation is a non-detachable part of the approved original certificate
for the import of rough diamonds.
- How do you ensure that only rough diamonds with a Certificate (Section III (b))
and placed in tamper resistant containers (Section IV (c)) are imported?
The Republic of Croatia has implemented a Customs electronic system which, upon customs
declaration and once the tariff code is entered in the system, warns that the import of rough
diamonds is allowed only through the Customs Branch Office of the Zagreb Airport.
If the Customs Branch Office establishes that KP requirements and other customs procedure
conditions have been met, it will complete the verification procedure no later than fifteen days
from the submission of the certificate for verification. If the consignment is not accompanied
by a KP certificate, is not properly packed or secured, the Customs Branch Office shall
withhold the delivery of rough diamonds. The Customs Branch Office shall, within thirty days
from receipt of the certificate for verification, inform the Ministry of Economy, Labour and
Entrepreneurship and the competent authority of the exporting Participant, that the conditions
have not been met. If the Customs Branch Office establishes that the negligence, i.e. failure to
meet the conditions is due to ignorance or carried out without intention or is resulting from the
action carried out by other competent authorities in performing their duties, the necessary
additional remedial measures will be taken so that the import and verification procedure may
proceed.
- Where are the originals of the Certificates kept accessible?
(Section III (b))
The Ministry is obliged to keep the approved originals of the certificates at least five years from
the date of approval.
- How many Certificates were received? From which Participants were Certificates
received?
In 2011, two rough diamond import certificate was received from the European Union (United
Kingdom)
No.
- Have there been cases of shipments which were not in conformity with the
provisions of the KPCS? If so, how were these followed up by your authorities?
Based on Recommendations – reply is optional:
- Are prior notifications of rough diamond shipments received by e-mail
(Recommendation 21)?

7.
Yes
- Do you verify that the seals and the container have not been tampered with and
that the export was performed in accordance with the Scheme (Recommendation
22)?
Yes
- Do you check that the content of an incoming shipment matches the information
declared on the certificate (Recommendation 23), e.g. by the use of diamond
values and other expertise?
Yes
- Is the return slip or import confirmation coupon sent back to the relevant
Exporting Authority?
(Recommendation 24)
Yes
D.System of internal controls and Industry Self-Regulation
(Based on Recommendations – reply is optional:)
In this section, a description of the internal system of controls designed to eliminate the presence
of conflict diamonds from shipments of rough diamonds, as stipulated by Section IV (a), may be
given. In drawing up this information, reference could, among other things, be made to the
options and recommendations for internal controls as elaborated in Section IV and in Annex II of
the KPCS document, namely
- The existence and functioning of a voluntary system of industry self- regulation
(Section IV)
- Have the names of individuals or companies convicted of activities relevant to the
purposes of the Certification Scheme been made known to all other Participants through
the Chair?
(Recommendation 6)
- Licensing of diamond mines, miners, buyers, sellers and agents
(Recommendations 9, 11, 12, 13, 14)
- The existence of a computerized database of licensed diamond mines, miners, buyers and
sellers
(Recommendation 16)
- The keeping of records of buying, selling and/or exporting transactions, listing the names
of buying and selling clients, license numbers, volume and value of transactions
(Recommendation 15)
Diamond importers are registered under the normal registration rules applying to all
companies engaged in trading or production activities. There is no specific requirement for
diamond importers. No inspections or spot-checks have been carried out so far, but the
possibility exists of customs inspections of companies. Payments for purchases are to be routed
through banks according to Croatian legislation.

8.
Croatia imports small amounts of low-value rough diamonds for the production of
manufacturing tools in metal industry. There are only two importers in Croatia, both
producers of diamond tools.
The importers are aware of KP requirements and are committed to respect them. They have
plaid a crucial role in Croatia’s accession to the Kimberley Process in 2003.
Importers have regular import patterns and know their trade partners well. The forwarding
agents and couriers do not always have the same awareness regarding KP requirements.
E.Statistics
In this section, information supplementing the data already submitted to the Chair of the Working
Group on Statistics in accordance with the provisions specified by Annex III of the KPCS may be
submitted. This information might also refer to procedural and methodological questions. The
statistical data submitted in accordance with Annex III are considered to be part of the annual
report.
Croatia has submitted complete statistical data for 2011
Trade
With
Trade
Type
Date HS
Code
Carats
(ct)
Value
(US$)
European
Community (United
Kingdom)
Import Q1,
2011
7102.21 133.10 5,194.9
European
Community (United
Kingdom)
Import Q2,
2011
7102.21 117.35 3,759.46
- No
Trade
Q3,
2010
- 0.00 0.00
- No
Trade
Q4,
2010
- 0.00 0.00
F.Miscellaneous
In this section, experiences, observations, problems (and solutions) or additional information
related to the implementation of the KPCS can be noted with a view to improving the overall
functioning of the Scheme and to establish a “best practice” policy. Information on irregularities
encountered or non-compliance with the KPCS by other Participants may also be supplied in this
section.
You may also set out here, or in separate correspondence with the Chair or with other
Participants, any requests for technical assistance that you feel will enhance your implementation
of the KPCS.

9.
ANNEX to the Guidelines
Checklist of Minimum requirements for Certificates according to ANNEX I of the KPCS
Document
Each Certificate bears the title "Kimberley Process
Certificate" and the following statement: "The rough
diamonds in this shipment have been handled in
accordance with the provisions of the Kimberley Process
Certification Scheme for rough diamonds"
yes
Country of origin for shipment of parcels of unmixed (i.e.
from the same) origin
yes
Certificates issued in English or English translation is
incorporated
yes
Tamper and forgery resistant yes
Date of issue and expiry yes
Issuing authority yes
Identification of exporter and importer yes
Carat weight/mass yes
Value in US$ yes
Number of parcels in shipment yes
Relevant Harmonised Commodity Description and
Coding System
yes