DR DOO, Croatia’s biggest cigarette maker, sees net income falling at least 10 percent after it loses free-trade access to four Balkan markets when the country joins the European Union.

The Rovinj-based company, part of Adris Grupa d.d., will start paying customs in Bosnia-Herzegovina and Kosovo, and face higher rates in Serbia and Macedonia after July 1, when Croatia exits the Central European Free Trade Agreement, or CEFTA, because of EU entry, said Chief Executive Officer Davor Tomaskovic. He estimated the cost at 10 million euros ($12.9 million).