The Czech Republic is committed to a free market and maintains a generally open economy, with few barriers to trade and investment. Membership in the European Union means that tariffs and standards, as well as most procedures, must conform to EU norms. This includes adoption of EU technical barriers to some imports of agricultural and food products. Customs formalities are usually handled by the importer.

Membership in Free Trade Arrangements

As a member of the European Union, the Czech Republic participates in all free trade arrangements entered into by the EU.

Customs Regulations/Tariff Rates

After accession to the European Union on May 1, 2004, customs controls at the land borders of the Czech Republic were abolished. Immigration controls will continue. International airports, of which the largest is Prague Ruzyne airport, will be the only external borders controlled by Czech customs authorities. VAT and excise taxes will be payable by the recipient of goods on the basis of Czech regulations. Goods transported to the Czech Republic under the Community Transit regime must be declared at a customs office in the Czech Republic. The following European Union legislation is directly applicable as of the date of accession:

- Council Regulation (EEC) no. 2454/93 of 12 October 1992, establishing the Community Customs Code, as amended,

- Commission Regulation (EEC) no. 2913/92 of 2 July 1993, laying down provisions for the implementation of Council Regulation (EEC) no. 2913/92.

- Council Regulation (EEC) no. 918/83 of 28 March 1983, setting up a Community system of reliefs from customs duty, as amended,

- Council Regulations (EEC) no. 2658/87 of 23 July 1987 on customs and statistical nomenclature and the Common Customs Tariff, as amended.

These regulations are available at http://europa.eu.int/eur-lex/en/search/search_lif.html
Duty rates under the EU Common Customs Tariff will apply.

Excise and Value-Added Taxes

The value-added tax (VAT) applies to all goods, both domestic and foreign, sold within the Czech Republic. The VAT rate is generally 19 percent, although a lower VAT of 9 percent is charged for selected goods, such as food and services. As part of its fiscal reforms, and in order to meet EU requirements, the government has moved some services up to the 19% VAT rate. VAT on imports is calculated on the declared customs value plus applicable duty and excise tax.
Excise taxes are imposed on the following goods produced or imported into the Czech Republic: fuels and lubricants, tobacco products, beer, wine and liquor. The rate is determined by the type and quantity of the product and must be paid within ten days after being notified by the Customs Office of the tax amount due.

Import/Export Requirements

U.S. companies exporting into the Republic from outside the European Union are required to present:

• A commercial invoice
• A shipper's export declaration for items requiring an export license or valued above $2,500) and a declaration of conformity (issued by importer)

Certifications

Some products require certification before a declaration of conformity can be issued. Depending on the nature of the goods, a veterinary health certificate and/or a certificate of origin (for concessionary customs rates, if applicable) can also be required. Products containing genetically modified organisms require special approvals.

Licensing Requirements

The Czech Ministry of Industry and Trade issues import licenses to those seeking to import selected goods into the Czech Republic. While most products and services are exempt from the licensing process, oil, natural gas, pyrotechnical products, sporting guns, ammunition and military equipment require a license. Under EU rules, imports of clothing, shoes, porcelain, and steel from certain Asian and Eastern European countries may require licenses.

Prohibited Imports

The list of prohibited imports includes certain veterinary and plant materials, freon, non-registered pharmaceuticals and chemical, biological, and nuclear weapons.

U.S. Export Controls

The Czech Republic adheres to international export controls and works in close cooperation with the United States and other Western countries in implementing export controls on certain sensitive technologies. U.S. export controls on items exported from the United States to the Czech Republic are generally similar to those in effect on items exported to other Western European destinations. Contact the U.S. Department of Commerce, Bureau of Export Administration, Washington, D.C. (Tel.: (202) 482-2547, Fax: (202) 482-3617) for details on U.S. export controls.

Temporary Goods Entry Requirements

The following are the most relevant temporary entry rules for U.S. exporters:

Temporary exemptions from duty are allowed for certain items, such as merchandise samples and items for display at trade shows or exhibitions. The Czech Republic also accepts ATA carnets as a way of facilitating temporary admission through customs. For more information about obtaining a carnet for clearance of goods, samples or equipment intended for temporary entry only, contact your local U.S. Department of Commerce Export Assistance Center.

Companies exporting goods to the Czech Republic for the purpose of temporary use may do so as long as the period does not exceed 24 months (in some cases it is possible to extend this). The exact time period must be agreed upon with Czech Customs. When the goods are re-exported, three percent of the duty value per month that the goods resided in the Czech Republic must be paid if the goods were used (maximum will not exceed full duty amount). The potential customs debt must be secured by a guarantee.

Exports to the Czech Republic of raw materials and certain semi-finished products that are processed and then re-exported from the European Union enter duty-free. This is contingent upon the approval by Czech Customs of the conditions of processing and the handling of any waste caused through transformation of the goods.

Free Trade Zones

There are 10 free trade zones established in several cities throughout the Czech Republic. Materials, components and semi-finished products are exempted from customs duties or VAT if they are imported into a free trade zone. If the goods are then used in the manufacturing or processing of a final product that is then re-exported, they are also exempted from duties or VAT. Duties and VAT are applied on the declared value of the goods if they are cleared for free circulation within the European Union. Similar rules apply to goods placed in a bonded warehouse; however, manufacturing operations are generally not permitted there.

Standards - Overview

The Czech Republic has harmonized its standards with European norms. Products certified in the Czech Republic or another EU member state can be marketed in the Czech Republic. In addition, products certified to meet EU standards (identified by the "CE" mark) by authorized U.S. testing laboratories are acceptable. ISO 9000 standards are being used increasingly in the Czech Republic as evidence of high product quality. Domestically, the "Czech Made" mark is an award given to products that are judged to be of outstanding quality, environmentally friendly, and favorable to energy consumption. This award is given to Czech products that are produced by a company or entrepreneur registered in the Czech Republic, with at least 60 percent Czech content measured by the cost of the final product.

Organization

The organization, which develops and maintains standards within the Czech Republic, is The Czech Office for Standards, Metrology and Testing. Their website (www.unmz.cz/index_en.html) outlines the Legislation in Force, International Contract Documents, as well as harmonized standards in accordance to particular government orders. The annual plan for the Czech Office for Standards, Metrology and Testing is the harmonization of current standards in the Czech Republic with those of the EU, and maintaining the standards in relation to new government policies.

Conformity Assessment

The list of acceptable conformity assessment bodies in the Czech Republic listed by the European Commission is found at
http://ec.europa.eu/enterprise/newapproach/nando/index.cfm?fuseaction=country.notifiedbody&cou_id=203

Additionally the United States and the European Union have entered into a conformity assessment agreement in an effort to unify assessment conditions between the US and EU. This agreement specifies the conditions by which each Party will accept or recognize results of conformity assessment procedures, produced by the other Party’s conformity assessment bodies or authorities. More information and details of this agreement can be found at http://www.useu.be/docs/mra98.pdf.

Product Certification

Some products require certification before a declaration of conformity can be issued. Depending on the nature of the goods, a veterinary health certificate and/or a certificate of origin (for concessionary customs rates, if applicable) can also be required. Products containing genetically modified organisms require special approvals.

Government to Government Mutual Recognition Agreements between the US and the EU are listed on the National Institute of Standards and Technology’s website
http://ts.nist.gov/ts/htdocs/210/gsig/mra.htm.

Accreditation

The Czech Accreditation Institute, Public Service Company, National Accreditation Body, was established by the government of the Czech Republic. It provides services in conformity with legal regulations concerning accreditation. CAI accredits both state and private organizations in all fields of accreditation. Integral European accreditation system, formed by national accreditation bodies, works in conformity with uniform rules. National accreditation bodies provide accreditation in conformity with uniform international standards. The accreditation system is based on the position of EC defined in Global Conception of Testing and Certification. CAI provides unambiguous, objective and independent proficiency testing, in conformity with the requirements of international standards and documents. Further information about the testing can be located on their website: http://www.cai.cz

The Czech Accreditation Institute is the formal accreditation body for the Czech Republic and is recognized as a member by the International laboratory Accreditation Cooperation (ILAC: http://www.ilac.org), the International Accreditation Forum (IAF: http://www.iaf.nu) and the European Accreditation Organization (EA: http://www.european-accreditation.org/default_flash.htm)

Technical Regulations

Technical regulations are mandated by The Czech Office for Standards, Metrology and Testing, a subordinate of the Ministry of Industry and Trade. Through their website: http://www.unmz.cz proposed technical regulations are published and are available for review. Final regulations are also published through the website. In addition, U.S. Entities have the opportunity to comment on proposed standards regulations through the enquiry point on Fulltexts of the notified draft regulations.

Labeling/Marketing

Labeling and marking requirements for products depend on the type of product and the intended use. In general, however, labels must be in the Czech language and can be affixed to the product or on a leaflet attached to the product. Information must include the name of the product, name of producer, country of origin, and in some cases, instructions for use. Labels for some products, such as foods, beverages, food supplements, and textiles, must also provide content/composition. Special labeling rules for products with biotech content have recently been introduced. In addition, international norms for warning labels on consumer products apply. Czech labeling requirements were harmonized with EU norms in 2002. Czech importers and distributors are responsible for the correct labeling of products that are put on the Czech market and can typically advise the U.S. exporter of specific requirements regarding labeling and marking.

Contact Information

U.S. Embassy Prague, U.S. Commercial Service
Greg O'Connor, Senior Commercial Officer
Zdenek Svoboda, Trade Specialist
Trziste 15, 118 01 Praha 1, Tel: (420) 257 531 162, ext. 2436, Fax: (420) 257 531 165
e-mail: greg.o'connor@N0SPAM.mail.doc.gov , zdenek.svoboda@N0SPAM.mail.doc.gov

United States Mission to European Union, U.S. Commercial Service
Foreign Commercial Service, European Union
Sylvia Mohr, Standards Specialist
rue Zinner 13, 1000 Brussels, Belgium, Tel: (32) 2 508 2222, Fax: (32) 2 513 1228
e-mail: sylvia.mohr@N0SPAM.mail.doc.gov

Bureau of Export Administration (BXA)/U.S. Department of Commerce
Export Counseling Division Tel: (202) 482 4811, Fax: (202) 482 3617
www.bxa.doc.gov
General Directorate of Customs
Budejovicka 7, 140 96 Praha 4, Tel: (420) 261 331 111, Fax: (420) 261 332 000
e-mail: podatelna.grc@N0SPAM.cs.mfcr.cz , http://www.cs.mfcr.cz

Licensing Office Department, Ministry of Industry and Trade
Na Frantisku 32, 110 15 Praha 1, Tel: (420) 224 221 828, Fax: (420) 224 212 133
e-mail: mpo@N0SPAM.mpo.cz , http://www.mpo.cz

Czech Office for Standards, Metrology and Testing
Gorazdova 24, 128 01 Praha 2, Tel: (420) 224 907 111, Fax: (420) 224 915 064
e-mail: unmz@N0SPAM.unmz.cz , http://www.unmz.cz

Czech Accreditation Institute
Opletalova 41, Novas Mesto, 110 00 Praha 1
Tel: (420) 221 004 501, Fax: (420) 221 004 408
e-mail: mail@N0SPAM.cai.cz , http://www.cai.cz