WORLD TRADE
ORGANIZATIONWT/REG89/R/B/2
G/L/549
14 May 2002
(02-2663)
Original:  English
CZECH REPUBLIC-SLOVAK REPUBLIC CUSTOMS UNION
Biennial Report on the Operation of the Agreement
Communication from the Parties
The report below presents the information received from the Permanent Missions of the
Czech Republic and the Slovak Republic, dated 2 April 2002.
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The Czech Republic and the Slovak Republic submit this second biennial report on the
implementation of the Agreement establishing th e Customs Union between the Czech Republic and
the Slovak Republic. The report is organized in acco rdance to the Standard Format for Information on
Regional Trade Agreements (WT/REG/W/6). It complements the first biennial report on theimplementation of the Customs Union Agreement on 14 March 2000, circulated in document
WT/REG 89/R/B/1.
Main developments
During the period under the review, the Agreement has contributed to harmonious
development of trade and economic relations between the Parties. In order to ensure its smoothimplementation and maximise benefits resulting fro m the Agreement, the Parties have continued to
update it (See Annex 1).
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and dates of signature, ratification and entry into force
The Agreement establishing the Customs Union between the Czech Republic and the Slovak
Republic (hereinafter “the Agreement”) was signed on 29 October 1992 as a part of a broader
spectrum of agreements and arrangements that were negotiated to ensure a smooth split of the former
Czech and Slovak Federal Republic.  It has been implemented since 1 January 1993.
The Agreement was notified to the GATT and reviewed by a Working Party established for
that purpose.
1  The Working Party found the Agreement consistent with the provisions of
Article XXIV of the GATT.2
                                                     
1 Documents L/7212 and Add. 1. dated 30 April 1993, resp. 12 May 1993.
2 Document L/7501, dated 15 July 1994.WT/REG89/R/B/2
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2. Trade data
Statistical data on the evolution of trade between the Czech Republic and Slovak Republic are
given in Annex 2.
II. TRADE PROVISIONS
1. Import Restrictions  &
2. Export Restrictions
The Agreement did not envisage any transitional period which is normally necessary for the
elimination of trade barriers and establishment of a customs union since no duties and other restrictiveregulations of commerce existed within the former  federation. In the period under the review, the
Parties have managed to preserve free trade in their relations. The only quantitative restrictions are
those maintained by the Czech Republic on imports of sugar (HS 1701 – 3500 tons per year) and
isoglucose (HS 1702 – 5000 tons per year) originating in the Slovak Republic. The Slovak Republic
restricted imports of non-alcoholic beverages (HS 2202 – 540000 hl per year), sugar (HS 1701 –3500 tons per year) and beer (HS 2203 – 532000 tons per year) originating in the Czech Republic.
Since the establishment of the Customs Union, the Parties have continued to pursue
conforming commercial and customs policies towards third countries and to apply a Common
Customs Tariff, which is reflected in two identical national Customs Tariffs.
3. Rules of origin
As explained in the first biennial report, the rules of origin applied since 1993 were adjusted
in January 1997 with a view to allow for diagonal cumulation of origin among European countries
since January 1997. Annual amendments to these rules were accomplished in 2000 and 2001 (seeAnnex 1).
III.  GENERAL PROVISIONS OF THE AGREEMENT
5. Institutional framework
The Council of the Customs Union held two regular sessions in 1999 and 2000 during which
the following issues had also been considered, namely development of mutual trade including issuesof product certification, exploring of possibilities for further liberalization of trade in agricultural
products, coordination with respect to other preferential and third country partners.WT/REG89/R/B/2
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ANNEX 1
Customs Union between the Czech Republic and the Slovak Republic:
Agreements Concluded since the Previous Review
Description Remarks Entry into force
Agreement between the Parties amending the
provisions of the Protocol regarding  thedefinition of  the term „original products“ andmethods of administrative co-operationRules on Pan European cumulation
were introducedsigned on 8.11.1999
in force since 1.1.2000
Agreement between the Ministry  of Industryand  Trade and the Ministry of Public Worksrelating to methods and terms of recognitionand utilization  of certificates and results oftests - building materialsCertificates of building materials signed on  25.5.1999
in force since 25.5.1999
Agreement between the Parties amending the
provisions of the Protocol regarding  the
definition of the term  „original products“ andmethods of administrative co-operationRules on Pan European cumulation
were introducedsigned on 16.11.2000
in force since 1.1.2001
Protocol No 2 to the Agreement relating to
methods of certificates and results of tests that
are the subjects of the trade among the
production factories and business establishmentof the Czech Republic and the Slovak RepublicCertification is amended by this
Protocol and is not applied to the
foodstuff products,  tobacco and the
cosmetic productssigned on 23. 5. 2000
in force since 23.5.2000WT/REG89/R/B/2
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ANNEX  2
Trade Data
Trade of Czech Republic and Slovak Republic, 1999-2000
(million of US dollars)
Customs Union Trade Imports from third countries
Year Czech Republic Imports
from Slovak RepublicSlovak Republic Imports
from Czech Republic  Czech Republic
(without Slovak R.)Slovak Republic
(without Czech R.)
1999 1,763.3 1,883.7 27,100.9 9,416.7
2000 1,936.8 1,879.6 31,082.4 10,907.1
Share of Bilateral Trade in total Foreign Trade
Year Czech Republic Slovak Republic
1999 7.1% 17.3%
2000 6.8% 16%
Customs Union Trade
 (thousands US dollars)
Import of the Czech Republic from
the Slovak RepublicImport of the Slovak Republic from
the Czech Republic HS Chapter
1999 1999 1999 2000
01 1,963 2,259 8,342 7,315
02 3,354 2,533 8,833 11,163
03 570 483 2,482 1,927
04 11,039 15,593 15,627 18,261
05 511 404 644 278
06 1,797 1,942 1,046 1,163
07 14,131 13,107 3,217 2,647
08 2,615 3,400 1,564 1,969
09 792 234 7,307 6,498
10 16,364 7,170 3,165 3,754
11 4,112 3,393 3,561 5,483
12 5,678 6,251 11,204 4,157
13 206 93 638 599
14 3 12 5 8
15 10,047 10,154 18,549 22,028
16 660 197 11,762 10,330
17 10,768 14,652 7,591 6,229
18 13,145 10,658 17,794 15,928
19 14,075 16,580 27,405 25,365
20 5,541 3,701 10,748 11,406
21 10,318 16,324 20,558 18,796
22 10,801 14,487 29,627 27,965WT/REG89/R/B/2
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Import of the Czech Republic from
the Slovak RepublicImport of the Slovak Republic from
the Czech Republic HS Chapter
1999 1999 1999 2000
23 2,292 1,496 5,584 6,413
24 28,248 14,334 59,123 42,450
25 39,826 39,574 13,823 13,145
26 3,074 3,149 425 370
27 217,736 339,896 118,140 134,832
28 17,143 15,406 22,331 21,439
29 35,118 49,767 67,697 73,518
30 65,534 52,914 52,427 45,657
31 15,357 19,126 898 931
32 4,235 3,270 15,360 15,985
33 7,071 6,179 11,790 10,172
34 18,962 20,462 17,062 16,986
35 1,985 2,463 1,083 965
36 1,403 1,763 1,420 1,396
37 196 239 721 659
38 11,547 9,756 12,944 12,636
39 97,630 107,966 75,504 79,341
40 50,068 49,950 29,227 31,006
41 3,132 3,419 5,665 6,007
42 1,574 1,289 2,711 2,294
43 446 208 1,069 748
44 33,089 36,291 22,327 23,271
45 3 20 98 87
46 87 41 52 79
47 13,403 2,602 17,010 17,219
48 98,294 94,317 59,129 60,364
49 21,287 20,736 28,360 25,192
50 0 1 3
51 2,074 1,622 3,712 3,406
52 3,807 3,039 16,838 16,152
53 566 405 2,171 1,060
54 42,191 46,292 2,330 3,033
55 3,547 4,177 12,193 11,660
56 741 818 5,919 6,229
57 212 211 1,115 767
58 71 96 3,467 3,120
59 250 402 19,324 17,559
60 400 556 3,960 3,467
61 3,539 8,333 11,425 10,876
62 17,699 21,059 11,036 9,431
63 2,967 2,569 5,714 6,627
64 11,814 11,342 8,492 8,829
65 141 209 700 778
66 137 161 470 243
67 102 74 60 54
68 15,236 16,796 14,127 17,286
69 15,846 16,922 22,069 19,821
70 17,516 19,530 19,839 21,267
71 4,037 3,845 7,170 6,168
72 233,796 305,755 103,705 105,811
73 66,892 63,693 103,624 107,718WT/REG89/R/B/2
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Import of the Czech Republic from
the Slovak RepublicImport of the Slovak Republic from
the Czech Republic HS Chapter
1999 1999 1999 2000
74 8,365 6,018 7,695 6,748
75 8 189 218 271
76 37,943 32,602 17,180 15,847
78 969 667 580 590
79 820 498 347 812
80 43 24 180 182
81 55 69 290 266
82 1,775 1,859 11,198 11,968
83 3,926 4,743 14,094 13,058
84 122,320 118,123 158,084 167,416
85 93,620 72,880 99,381 104,957
86 6,667 6,732 23,668 19,720
87 78,841 82,375 257,333 244,949
88 112 51 2,212 1,815
89 16 12 64 41
90 10,381 9,216 17,793 15,936
91 329 256 392 397
92 22 14 288 251
93 0 0 2,192 2,377
94 19,713 20,718 25,278 32,767
95 2,234 2,945 5,088 4,878
96 406 466 6,963 6,472
97 167 110 65 45
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