VI. TRADE REGULATIONS AND STANDARDS

A. Tariffs and Import Taxes

Czechoslovakia was a founding member of the GATT.  The Czech
Republic has adopted a GATT tariff code, which has an average tariff
of 5-6 percent.

B. Customs Valuation

Customs valuation is based on commercial invoice.  Duties and taxes
are levied on an ad valorem basis.

C. Import Licenses

Import licenses are required for certain classes of goods into the
Czech Republic.  These are listed in a special appendix to the trade
law.  "Appendix A" goods, for which a license is automatically granted
after payment of an administrative fee, include uranium ore, scrap
metals, and textile products, as well as certain agricultural products
and food.

"Appendix B, C, D & E" products, which include agricultural and food
products, some minerals, chemicals, pharmaceuticals, raw hides and
other hide products, poisonous and toxic substances and military and
dual-use items, are subject to license granted to a certain extent in
relation to a limited value or quantity.

All licenses are issued by the Ministry of Trade and Industry.

D. Export Controls

The Czech Republic adheres to former-COCOM regulations and works
closely with the United States in implementing export controls on
certain technologies.  Contact the U.S. Department of Commerce,
Bureau of Export Administration for more details.

E. Import/Export Documentation

A commercial invoice, bill of lading, shipper's export declaration are
generally required.  Also required, depending on the nature of the
goods, are a veterinary health certificate, and a certificate of origin
(for concessionary customs rates, if applicable).

F. Temporary Entry

Temporary exemptions from duty are allowed for certain items, for a
trade show or exhibition, as samples, or other purposes.

G.  Labeling, Marking Requirements

There are no specific requirements for labeling.

H. Prohibited Imports

There are few prohibited imports.

I. Standards

Many local standards are European Union-based.  Full re-testing of
products that have passed U.S. and European standards and testing
is common, however.

J. Free Trade Zones/Warehouses

Free trade zones exist in several cities.  The development of these
zones is new, and the Czech Customs Duty Act, valid since January 1,
1993 applies.  All goods stored in customs zones, or free trade zones
are exempt from duty, and special regulations provide advantages
which usually apply to Czech exports.

K. Special Import Provisions

Where a foreign firm owns more than 30 percent (and not less than 50
million crowns) of a local joint venture, the firm may import duty free
goods which are intended for processing, reprocessing, completion, or
assembly into final products.  The customs value of the imported
goods must not be more than the price of the goods exported by the
venture.  A sample of some products which may be imported tax free
includes:

-acrylic acid, polystyrene, synthetic rubber, and other rubber
 products
-paper, cardboard, cement, concrete
-sanitary and porcelain products, technical and household glass
-iron and steel tubes, pipes, and constructed panels, tanks, etc.
-steam boilers, generators, freezers, pumps, laboratory equipment,
 washing machines, etc.
-electric motors, generators, etc.
-A-V technology, broadcasting equipment
-parts for railways and motor vehicles
-medical and surgical equipment.

L. Membership in Free Trade Arrangements

The Czech Republic is a member of the Central European Free Trade
Area (CEFTA), comprised of Poland, Hungary, Slovakia, and the Czech
Republic.  It is also an associate member of the European Union.