Table of Contents
1. Regulations and Policies
1.1 Trade Regulations and Policies
1.1.1 Principal Authority Governing Trade
1.1.2 Trade Regulations
1.1.3 Relevant Provisions on Trade Administration
1.1.4 Inspection and Quarantine of Imported and Exported Commodities
1.1.5 Customs Administration Rules and Regulations
1.1 Trade Regulations and Policies
1.1.1 Principal Authority Governing Trade
The government department responsible for trade in Czech is the Ministry of Industry and Trade. Its primary responsibilities include formulating policies and regulations related to industry, energy, and domestic and international trade; developing and implementing national foreign trade and economic cooperation policies; managing multilateral and bilateral foreign economic and trade negotiations; collaborating with international economic organizations such as the World Trade Organization; and overseeing technical standards, metrology and national testing, electronic communications, and postal services. In addition to the Ministry itself, it directly oversees the Czech Invest, Foreign Trade Development Bureau, Commodity Inspection Bureau, National Technical Standards, Metrology and Testing Bureau, State Energy Inspectorate, and other agencies.
1.1.2 Trade Regulations
Following its accession to the European Union (EU) in May 2004, the Czech Republic commenced the implementation of the EU's unified foreign economic policy and accordingly revised its national foreign economic legislation. The relevant trade policies primarily include the Common Export Policy (Regulation <EEC> No. 2603/69), Provisions on Export Credit Insurance (Directive 98/29/EC), Regulations on EU Agricultural Exports (Regulation <EEC> No. 3911/92), Regulations on the Application of Common Rules to Imports (Regulation <EC> No. 3285/94), Regulations on Imports from Non-EU Countries (Regulation <EC> No. 519/94), EU Procedures for Quantitative Restrictions on Imports (Commission Regulation <EC> No. 520/94), EU Anti-Dumping Measures (Commission Regulation <EC> No. 384/96), EU Protection Against Subsidized Imports (Commission Regulation <EC> No. 2026/97), Protection Against Trade Barriers (Commission Regulation <EC> No. 3286/94), etc.
1.1.3 Relevant Provisions on Trade Administration
[Administrative Measures] The primary measures for foreign trade administration in Czech include exclusive licensing, import, and export tariffs, anti-dumping and protection against subsidized imports, protection measures against excessive imports, consumer protection measures, health measures, environmental protection measures, quality management measures, inspection and quarantine measures, intellectual property rights protection, rules for the circulation of the domestic trade market, government procurement rules, fiscal subsidies, etc.
[Import Management] Regarding imports, Czech maintains relatively low import tariffs; however, within the EU framework, numerous trade protection measures are in place, including anti-dumping, protection against subsidized imports, inspection, and quarantine, consumer protection, as well as other technical barriers.
[Export Management] Regarding exports, export restrictions are imposed on only a limited number of products, primarily those related to materials in short supply, sensitive technologies, matters of national or public social interest, and products affecting human and animal as well as plant health. Examples include uranium ore, electric chairs, and related equipment for the death penalty, weapons, and dual-use goods and technologies. Czech imposes restrictions on the export of weapons and certain high-technology products to China, including high-precision machine tools.
1.1.4 Inspection and Quarantine of Imported and Exported Commodities
[Quality Management of Imported Commodities] In accordance with the EU regulations on product quality management, products originating from non-EU countries must undergo inspection by an EU-authorized inspection agency and be certified to meet EU standards before being marketed within the EU. Czech's product technical standards and certification system have been aligned with those of the EU. Product quality certification primarily encompasses technical standard regulations for mechanical equipment, general voltage electronic equipment and unified evaluation criteria, gas appliances, electromagnetic compatibility equipment, toys, weapons and ammunition, fireworks products, non-automatic weighing equipment, other specified equipment technical standards and regulations, as well as chemical product standard regulations.
[Export Quality Management] Regarding commodity exports, export inspection procedures are processed only when foreign importers require Czech exporters to issue relevant commodity inspection certificates.
[Animal and Plant Inspection and Quarantine Measures] The National Animal Quarantine Service and the National Plant Quarantine Service, both under the Ministry of Agriculture of the Czech Republic, are responsible for animal and plant quarantine. According to the relevant regulations of Czech, to ensure domestic food safety and control animal epidemics, importers intending to import or transit live animals, fresh frozen meat, and other meat products must apply for an animal quarantine permit from the Ministry of Agriculture by providing details such as the country of origin, destination country, type, and quantity. Plants or plant products must be imported or transited upon presentation of a quarantine certificate issued by the plant quarantine authority of the country of origin and are subject to inspection by border gate plant quarantine personnel. Furthermore, the National Plant Quarantine Service publishes a list of plants, plant products, and harmful organisms that are prohibited from entry or transit.
1.1.5 Customs Administration Rules and Regulations
The import and export of goods among EU member states are considered intra-EU trade flows and are exempt from customs duties. The import and export of goods from non-EU countries are subject to the EU's unified tariff policy and rates. For specific tax rates, please visit the TARIC inquiry system website of the Directorate-General for Taxation and Customs Union of the European Commission:
ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp
Czech generally does not impose export taxes on exported goods and also implements a policy of value-added tax (VAT) refunds. Imported goods are taxed based on country classification, with import tariff rates primarily categorized into three types: standard tariff rate, most-favored-nation tariff rate (MFN rate), and generalized system of preferences tariff rate. Moreover, various supplementary taxes may be imposed as circumstances require.
The VAT on the circulation of goods among EU member states is to be settled individually by each member state in accordance with its national tax laws under the guidance of relevant EU principles and shall serve as a source of fiscal revenue for the respective governments. For goods imported from non-EU countries, importers may choose to clear customs at the first point of entry into the EU or at the customs office of the destination country. The procedures for exporting EU goods are identical to those for imports; however, the goods must exit the EU customs territory through the customs offices of EU border countries.
Disclaimer:The above content is translated from Chinese version of Ministry of Commerce of the People's Republic of China. The Ministry of Commerce of the People's Republic of China version shall prevail.