WTo Basic instruments and Selected documents

World Trade organizaTion

BASIC INSTRUMENTSAND

SELECTED DOCUMENTS

Volume 9

Protocols, Decisions, Reports

2003

GENEVA, JULY 2007

in the series of the WTo Basic instruments and Selected documents, the follow-ing publications are available in english, French and Spanish and can be obtained from Bernan associates or from the WTo.

BiSd 1995, Protocols, decisions reports, etc., published in 1995 iSBn 92-870-1226-1 - iSSn 1726-2917 BiSd 1996, Protocols, decisions, reports, etc., published in 1996 iSBn 92-870-3302-1 - iSSn 1726-2917 BiSd 1997, Protocols, decisions, reports, etc., published in 1997 iSBn 92-870-3319-6 - iSSn 1726-2917 BiSd 1998, Protocols, decisions, reports, etc., published in 1998 iSBn 92-870-3334-X - iSSn 1726-2917 BiSd 1999, Protocols, decisions, reports, etc., published in 1999 iSBn 1-59888-133-7 - iSSn 1726-2917 BiSd 2000, Protocols, decisions, reports, etc., published in 2000 iSBn 978-1-59888-143-1 - iSSn 1726-2917 BiSd 2001, Protocols, decisions, reports, etc., published in 2001 iSBn 978-1-59888-150-9 - ISSN 1726-2917 BiSd 2002, Protocols, decisions, reports, etc., published in 2002 iSBn 978-1-59888-160-8 - ISSN 1726-2917 BiSd 2003, Protocols, decisions, reports, etc., published in 2003 iSBn 978-1-59888-191-2 - ISSN 1726-2917

PREFACE

The 2003 volume of the WTo Basic instruments and Selected documents (BiSd) contains Protocols, decisions and reports adopted in 2003. Certain documents have been numbered or renumbered to simplify indexing. WTo panel and appellate Body reports, as well as arbitration awards, can be found in the dispute Settlement reports (dSr) series co-published by the WTo and Cambridge University Press.

vWTo BiSd 2003

Table of Contents

WTo BiSd 2003

TABLE OF CONTENTS

WTO BISD - 2003

Page

Members; observer governments .................................................................... xi

OFFICERS

officers of the Ministerial Conference – Fifth Session, Cancún 2003............ 1officers of other main WTo Bodies................................................................. 2

LEgaL InStRumEntS

Protocol of accession of Cambodia................................................................. 5Protocol of accession of nepal........................................................................ 7Modifications and rectifications of Schedules of Concessions to the general agreement on Tariffs and Trade 1994 in 2003..................... 9Certifications of Modifications and rectifications to appendices i-iV of the agreement on government Procurement (1994)... 9

DECISIOnS anD REpORtS

ministerial Conference - Fifth Session, September 2003 Ministerial Statement.................................................................................... 10

accessionCambodia report of the Working Party......................................................................... 11 decision of 11 September 2003 by the Ministerial Conference.................. 109nepal report of the Working Party......................................................................... 110 decision of 11 September 2003 by the Ministerial Conference.................. 201

appellate Body Working Procedures For appellate review.................................................. 202

general Council implementation of Paragraph 6 of the doha declaration on the TriPS

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WTo BiSd 2003

agreement and Public Health – decision of the general Council on 30 august 2003.................................................................................... 229 negotiations on improvements and clarifications of the dSU – extension of timeframe – Statement by the Chairman............................ 235 Follow-up to the Cancún Ministerial Conference – report by the Chairman and the director-general................................................... 236

Dispute Settlement BodyProposed amendments to the Working Procedures for appellate review................................................................................ 238appointment of appellate Body Members................................................. 242

Council for trade in goods

Committee on Customs Valuationdecisions on extensions of delay periods as well as on minimum values according to paragraphs 1 and 2, annex iii of the agreement on implementation of article Vii of the general agreement on Tariffs and Trade.................... 250

Committee on Subsidies and Countervailing measures decisions relating to extensions under the SCM article 27.4 of the transition period under the SCM article 27.2(b) for the elimination of export subsidies, including decisions pursuant to the procedures in g/SCM/39 or pursuant to paragraph 10.6 of the Ministerial decision on implementation-related issues and Concerns................................................................................................ 251

Committee on technical Barriers to trade Third Triennial review of the operation and implementation of the agreement on Technical Barriers to Trade - adopted by the Committee on 7 november 2003.................................................. 253

Working party on State trading Enterprises recommendation on the Frequency of notifications - adopted by the Working Party on State Trading enterprises on 11 november 2003 and approved by the Council for Trade in goods on 26 november 2003.................................................... 280

Committee on Budget, Finance and administrationabstract of the report – adopted by the general Council on 15-16 decembe 2003.......................................................................... 281

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WTo BiSd 2003

Committee on trade and Environmentreport to the 5th Session of the WTo Ministerial Conference in Cancún – Paragraphs 32 and 33 of the doha Ministerial declaration – adopted by the Committee on 7 July 2003............................................... 286

Council for trade-Related aspects of Intellectual property Rightsimplementation of article 66.2 of the TriPS agreement - decision adopted by the Council for TriPS on 19 February 2003.......................... 310

Waivers implementation of the Harmonized Commodity description and Coding System.......................................................................................... 312 introduction of Harmonized System Changes into WTo Schedules of Tariff Concessions on 1 January 1996.............................................. 312 Kimberley Process Certification Scheme for rough diamonds.............. 313

Council for trade in Services in Special Session Modalities for the Treatment of autonomous liberalization – adopted by the Special Session of the Council for Trade in Services on 6 March 2003.......................................................... 314 Modalities for the Special Treatment for least-developed Country Members in the negotiations on Trade in Services - adopted by the Special Session of the Council for Trade in Services on 3 September 2003................................................................................. 317

DECISIOnS anD REpORtS nOt InCLuDED...................................... 320

InDEx.......................................................................................................... 327

ix

x WTo BiSd 2003

albaniaangola antigua and Barbudaargentinaarmeniaaustraliaaustria Bahrain BangladeshBarbadosBelgiumBelize Benin Bolivia BotswanaBrazil Brunei darussalamBulgariaBurkina FasoBurundi CameroonCanada Central african republicChad Chile ChinaColombiaCongoCosta ricaCôte d’ivoireCroatiaCuba Cyprus Czech republicdemocratic republic of the Congodenmark

djibouti dominicadominican republicecuadoregypt el Salvadorestonia european CommunitiesFiji Finland Former Yugoslav rep. of Macedonia France gabon The gambiageorgiagermanyghana greece grenadaguatemalaguinea-Bissau guinea, republic ofguyana Haiti HondurasHong Kong, ChinaHungaryiceland india indonesiaireland israel italy Jamaica JapanJordan

Kenya Korea, republic ofKuwait Kyrgyz republiclatvia lesotho liechtensteinlithuanialuxembourgMacau, ChinaMadagascarMalawi MalaysiaMaldivesMali Malta MauritaniaMauritiusMexico MoldovaMongoliaMoroccoMozambiqueMyanmarnamibianetherlands new zealandnicaraguaniger nigeria norway omanPakistanPanama Papua new guineaParaguayPeru

WTO MEMBERS AND OBSERVERS(as at 31 december 2003)

a. MeMBerS (146)

WTo BiSd 2003

WTO MEMBERS AND OBSERVERS(as at 31 december 2003)

PhilippinesPoland PortugalQatar romaniarwanda Saint Kitts and nevisSaint luciaSaint Vincent and the grenadinesSenegal Sierra leoneSingapore

Slovak republicSloveniaSolomon islandsSouth africaSpain Sri lankaSurinameSwazilandSweden SwitzerlandChinese TaipeiTanzaniaThailand

Togo Trinidad and TobagoTunisia Turkey Uganda United arab emiratesUnited KingdomUnited StatesUruguayVenezuelazambia zimbabwe

xi

algeria andorraazerbaijanBahamasBelarus BhutanBosnia and HerzegovinaCambodia Cape Verdeequatorial guinea

ethiopiaHoly SeeKazakhstan laos, P.d.r. oflebanonnepalrussian Federation SamoaSao Tome and PrincipeSaudi arabia

Serbia and Montenegro1

Seychelles Sudan TajikistanTonga Ukraine Uzbekistan Vanuatu Viet namYemen

B. oBSerVerS (30)

1 Formerly Yugoslavia, Federal rep.of.

WTo BiSd 2003

1WTo BiSd 2003

OFFICERS OF THE MINISTERIAL CONFERENCE

Fifth Session

(Cancún, 10 - 14 September 2003)

Chairperson:

Mr luis ernesto derbez (Mexico)

Vice-Chairpersons:

Mr laurens Jan Brinkhorst (netherlands)

Mr amir Khosru Mahmud Chowdhury (Bangladesh)

Mr Youssef Boutros ghali (egypt)

2 WTo BiSd 2003

- Committee on anti-dumping Practices Mr david evans (new zealand)

- Committee on Customs Valuation Mr ivan lee (Hong Kong, China)

- Committee on import licensing Ms Philippa davies (Jamaica)

- Committee on Market access Ms Jo lomas (United Kingdom)

- Committee on rules of origin Mr Syed Habib ahmed (Pakistan)

- Committee on Safeguards Mr Pornchai danvivathana (Thailand)

- Committee on Sanitary and Phyto sanitary Measures

Mr Paul Martin (Canada)

- Committee on Subsidies and Countervailing Measures

Ms olga lucia lozano (Colombia)

- Committee on Technical Barriers to Trade

Mr Juan antonio dorantes Sanchez (Mexico)

- Committee on Trade-related investment Measures

Mr Sivaramen Palayathan (Mauritius)

- Working Party on State Trading enterprises

Ms Judith Vankova (Slovak republic)

- Committee of Participants on the expansion of Trade in information Technology Products

Mr Hisashi Yoshikawa (Japan)

CouncilforTradeinServices Mr ousmane Camara (Senegal)

- Committee on Specific Commitments Mr Thomas lambert (Belgium)

- Committee on Trade in Financial Services

Mr david Usher (Canada)

- Working Party on gaTS rules Mr Santiago Urbina (nicaragua)

- Working Party on domestic regulation

Mr Johannes Bernabe (Philippines)

GeneralCouncil Mr Carlos Pérez del Castillo (Uruguay)

DisputeSettlementBody Mr Shotaro oshima (Japan)

TradePolicyReviewBody Mrs Mary Whelan (ireland)

CouncilforTradeinGoods Mr Milan Hovorka (Czech republic)

- Committee on agriculture Mr Magdi Farahat (egypt)

OFFICERS OF OTHER WTO BODIES (2003)

3WTo BiSd 2003

CouncilforTrade-RelatedAspectsof IntellectualPropertyRights

Mr Vanu gopala Menon (Singapore)

CommitteeonBalance-of-Payments Restrictions

Mr Manzoor ahmad (Pakistan)

CommitteeonBudget,Financeand Administration

Mr Joshua C.K. law (Hong Kong, China)

CommitteeonRegionalTrade Agreements

Mr Jaynarain Meetoo (Mauritius)

CommitteeonTradeandDevelopment Mr Habib Mansour (Tunisia)

- dedicated Session of the Committee on Trade and development

Mr Habib Mansour (Tunisia)

- Sub-Committee on least-developed Countries

Mr Johan Molander (Sweden)

CommitteeonTradeandEnvironment Mr Peter Brño (Slovak republic)

WorkingGroupontheRelationship betweenTradeandInvestment

Mr luiz Felipe de Seixas Corrêa (Brazil)

WorkingGroupontheInteraction betweenTradeandCompetitionPolicy

Mr Frédéric Jenny (France)

WorkingGrouponTransparencyin GovernmentProcurement

Mr ronald Saborío Soto (Costa rica)

WorkingGrouponTrade,Debtand Finance

Mr Hernando José gómez (Colombia)

WorkingGrouponTradeand TransferofTechnology

Mr Stefán Haukur Jóhannesson (ice-land)

TradeNegotiationsCommittee Mr Mike Moore (WTo director-general) followed by dr. Supachai Panitchpakdi (WTo director-general)

- Special Session of the Council for Trade in Services

Mr alejandro Jara (Chile)

- Special Session of the Council for TriPS

Mr eui Yong Chung (Korea)

- Special Session of the dispute Settlement Body

Mr Péter Balás (Hungary)

- Special Session of the Committee on agriculture

Mr Stuart Harbinson (Hong Kong, China – then WTo director, office of the director-general)

4 WTo BiSd 2003

- Special Session of the Committee on Trade and development

Mr ransford Smith (Jamaica)

- Special Session of the Committee on Trade and environment

Mrs Yolande Biké (gabon)

- negotiating group on Market access Mr Pierre-louis girard (Switzerland)

- negotiating group on rules Mr Timothy John groser (new zealand)

Plurilateral Trade agreements:

CommitteeonGovernmentProcurement Mr Jan-Peter Mout (netherlands) followed by Mr niklas Bergström (Sweden)

CommitteeonTradeinCivilAircraft Mr didier Chambovey (Switzerland)

- Sub-Committee of the Committee on Trade in Civil aircraft

Mr didier Chambovey (Switzerland)

- Technical Sub-Committee of the Committee on Trade in Civil aircraft

Mr didier Chambovey (Switzerland)

5WTo BiSd 2003

legal instruments

LEGAL INSTRUMENTS

ProToCol on THe aCCeSSion oF THe KingdoM oF CaMBodia(ExtractfromWT/MIN(03)/18)

PreaMBle

The World Trade organization (hereinafter referred to as the “WTo”), pursuant to article Xii of the Marrakesh agreement establishing the World Trade organization (hereinafter referred to as the “WTo agreement”), and the Kingdom of Cambodia,

Taking note of the report of the Working Party on the accession of the Kingdom of Cambodia to the WTo agreement reproduced in document WT/aCC/KHM/21, dated 15 august 2003 (hereinafter referred to as the “Working Party report”),

Having regard to the results of the negotiations on the accession of the Kingdom of Cambodia to the WTo agreement,

Agreeas follows

ParT i - general

1. Upon entry into force of this Protocol pursuant to paragraph 8, the Kingdom of Cambodia accedes to the WTo agreement pursuant to article Xii of that agreement and thereby becomes a Member of the WTo.

2. The WTo agreement to which the Kingdom of Cambodia accedes shall be the WTo agreement, including the explanatory notes to that agreement, as rectified, amended or otherwise modified by such legal instruments as may have entered into force before the date of entry into force of this Protocol. This Protocol, which shall include the commitments referred to in paragraph 224 of the Working Party report, shall be an integral part of the WTo agreement.

3. except as otherwise provided for in paragraph 224 of the Working Party report, those obligations in the Multilateral Trade agreements annexed to the WTo agreement that are to be implemented over a period of time starting with the entry into force of that agreement shall be implemented by the Kingdom of Cambodia as if it had accepted that agreement on the date of its entry into force.

4. The Kingdom of Cambodia may maintain a measure inconsistent with paragraph 1 of article ii of the general agreement on Trade in Services (hereinafter

6 WTo BiSd 2003

legal instruments

referred to as “gaTS”) provided that such a measure was recorded in the list of article ii exemptions annexed to this Protocol and meets the conditions of the annex to the gaTS on article ii exemptions.

ParT ii - SCHedUleS

5. The Schedules reproduced in annex i1 to this Protocol shall become the Schedule of Concessions and Commitments annexed to the general agreement on Tariffs and Trade 1994 (hereinafter referred to as the “gaTT 1994”) and the Schedule of Specific Commitments annexed to the gaTS relating to the Kingdom of Cambodia. The staging of the concessions and commitments listed in the Schedules shall be implemented as specified in the relevant parts of the respective Schedules.

6. For the purpose of the reference in paragraph 6(a) of article ii of the gaTT 1994 to the date of that agreement, the applicable date in respect of the Schedules of Concessions and Commitments annexed to this Protocol shall be the date of entry into force of this Protocol.

ParT iii - Final ProViSionS

7. This Protocol shall be open for acceptance, by signature or otherwise, by the Kingdom of Cambodia until 31 March 2004.

8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall have been accepted by the Kingdom of Cambodia.

9. This Protocol shall be deposited with the director-general of the WTo. The director-general of the WTo shall promptly furnish a certified copy of this Protocol and a notification of acceptance by the Kingdom of Cambodia thereto pursuant to paragraph 9 to each Member of the WTo and to the Kingdom of Cambodia.

This Protocol shall be registered in accordance with the provisions of article 102 of the Charter of the United nations.

done at Cancún this eleventh day of September, two thousand and three in a single copy in the english, French and Spanish languages, each text being authentic, except that a Schedule annexed hereto may specify that it is authentic in only one of these languages.

1 not reproduced.

7WTo BiSd 2003

legal instruments

ProToCol on THe aCCeSSion oF THe KingdoM oF nePal(ExtractfromWT/MIN(03)/19)

PreaMBle

The World Trade organization (hereinafter referred to as the “WTo”), pursuant to article Xii of the Marrakesh agreement establishing the World Trade organization (hereinafter referred to as the “WTo agreement”), and the Kingdom of nepal,

Taking note of the report of the Working Party on the accession of the Kingdom of nepal to the WTo agreement reproduced in document WT/aCC/nPl/16, dated 28 august 2003 (hereinafter referred to as the “Working Party report”),

Having regard to the results of the negotiations on the accession of the Kingdom of nepal to the WTo agreement,

Agree as follows:

ParT i - general

1. Upon entry into force of this Protocol pursuant to paragraph 8, the Kingdom of nepal accedes to the WTo agreement pursuant to article Xii of that agreement and thereby becomes a Member of the WTo.

2. The WTo agreement to which the Kingdom of nepal accedes shall be the WTo agreement, including the explanatory notes to that agreement, as rectified, amended or otherwise modified by such legal instruments as may have entered into force before the date of entry into force of this Protocol. This Protocol, which shall include the commitments referred to in paragraph 153 of the Working Party report, shall be an integral part of the WTo agreement.

3. except as otherwise provided for in paragraph 153 of the Working Party report, those obligations in the Multilateral Trade agreements annexed to the WTo agreement that are to be implemented over a period of time starting with the entry into force of that agreement shall be implemented by the Kingdom of nepal as if it had accepted that agreement on the date of its entry into force.

4. The Kingdom of nepal may maintain a measure inconsistent with paragraph 1 of article ii of the general agreement on Trade in Services (hereinafter referred to as “gaTS”) provided that such a measure was recorded in the list of article ii exemptions annexed to this Protocol and meets the conditions of the annex to the gaTS on article ii exemptions.

8 WTo BiSd 2003

legal instruments

ParT ii - SCHedUleS

5. The Schedules reproduced in annex i1 to this Protocol shall become the Schedule of Concessions and Commitments annexed to the general agreement on Tariffs and Trade 1994 (hereinafter referred to as the “gaTT 1994”) and the Schedule of Specific Commitments annexed to the gaTS relating to the Kingdom of nepal. The staging of the concessions and commitments listed in the Schedules shall be implemented as specified in the relevant parts of the respective Schedules.

6. For the purpose of the reference in paragraph 6(a) of article ii of the gaTT 1994 to the date of that agreement, the applicable date in respect of the Schedules of Concessions and Commitments annexed to this Protocol shall be the date of entry into force of this Protocol.

ParT iii - Final ProViSionS

7. This Protocol shall be open for acceptance, by signature or otherwise, by the Kingdom of nepal until 31 March 2004.

8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall have been accepted by the Kingdom of nepal.

9. This Protocol shall be deposited with the director-general of the WTo. The director-general of the WTo shall promptly furnish a certified copy of this Protocol and a notification of acceptance by the Kingdom of nepal thereto pursuant to paragraph 7 to each Member of the WTo and to the Kingdom of nepal.

This Protocol shall be registered in accordance with the provisions of article 102 of the Charter of the United nations.

done at Cancún this eleventh day of September two thousand and three, in a single copy in the english, French and Spanish languages, each text being authentic, except that a Schedule annexed hereto may specify that it is authentic in only one of these languages.

1 not reproduced.

9WTo BiSd 2003

legal instruments

CerTiFiCaTionS oF ModiFiCaTionS and reCTiFiCaTionS oF SCHedUleS oF ConCeSSionS and CoMMiTMenTS To gaTT 1994

The following table lists all the modifications and rectifications to Schedules of Concessions and Commitments to gaTT 1994 certified in 2003.

Member Type date of certification document

Bulgaria Certification of Modifications and rectifications to Schedule CXXXiX 11 april 2003 WT/let/443

grenada Certification of Modifications and rectifications to Schedule CXXVii 23 May 2003 WT/let/445

Hungary Certification of Modifications and rectifications to Schedule lXXi 11 april 2003 WT/let/441

india Certification of Modifications and rectifications to Schedule Xii 4 april 2003 WT/let/440

norway Certification of Modifications and rectifications to Schedule XiV 11 april 2003 WT/let/442

CerTiFiCaTionS oF ModiFiCaTionS and reCTiFiCaTionS To aPPendiCeS i-iV oF THe agreeMenT on goVernMenT

ProCUreMenT (1994)

The following table lists all the modifications and rectifications to the appendices to the agreement on government Procurement (1994) certified in 2003. The appendices are in the form of a loose-leaf system which was given legal effect pursuant to the decision of the Committee on government Procurement of 4 June 1996 (gPa/M/2).

Party Type date of certification document

european Communities

Certification of replacement pages to appendix i 10 March 2003 WT/let/438

Hong Kong, China

Certification of replacement pages to appendix i Certification of replacement pages to appendix i

15 december 2003 30 april 2003

WT/let/453

WT/let/444

iceland Certification of replacement pages to appendix i 10 March 2003 WT/let/438

Japan

Certification of replacement pages to appendix i Certification of replacement pages to appendix i

15 december 2003 16 June 2003

WT/let/452

WT/let/446

norway Certification of replacement pages to appendix i 10 March 2003 WT/let/438

Switzerland Certification of replacement pages to appendix i 10 March 2003 WT/let/437

10 WTo BiSd 2003

decisions and reports

DECISIONS AND REPORTS

MINISTERIAL CONFERENCE Fifth session, Cancún 2003

MiniSTerial STaTeMenTAdoptedbytheMinisterialConferenceon14September2003

(WT/MIN(03)/20)

1. as we conclude our Fifth Ministerial Conference in Cancún, we would like to express our deep appreciation to the government and people of Mexico for the excellent organization and warm hospitality we have received in Cancún.

2. at this meeting we have welcomed Cambodia and nepal as the first least-developed countries to accede to the WTo since its establishment.

3. all participants have worked hard and constructively to make progress as required under the doha mandates. We have, indeed, made considerable progress. However, more work needs to be done in some key areas to enable us to proceed towards the conclusion of the negotiations in fulfilment of the commitments we took at doha.

4. We therefore instruct our officials to continue working on outstanding issues with a renewed sense of urgency and purpose and taking fully into account all the views we have expressed in this Conference. We ask the Chairman of the general Council, working in close co-operation with the director-general, to coordinate this work and to convene a meeting of the general Council at Senior officials level no later than 15 december 2003 to take the action necessary at that stage to enable us to move towards a successful and timely conclusion of the negotiations. We shall continue to exercise close personal supervision of this process.

5. We will bring with us into this new phase all the valuable work that has been done at this Conference. in those areas where we have reached a high level of convergence on texts, we undertake to maintain this convergence while working for an acceptable overall outcome.

6. notwithstanding this setback, we reaffirm all our doha declarations and decisions and recommit ourselves to working to implement them fully and faithfully.

11WTo BiSd 2003

accession

ACCESSIONS

aCCeSSion oF CaMBodia

ReportoftheWorkingPartyAdoptedbytheMinisterialConferenceon11September2003

(WT/ACC/KHM/21)

introduction

1. The government of the Kingdom of Cambodia applied for accession to the World Trade organization in october 1994. at its meeting on 21 december 1994, the Preparatory Committee for the WTo established a Working Party to examine the application of the government of Cambodia to accede to the World Trade organization under article Xii of the Marrakesh agreement establishing the WTo. The terms of reference and the membership of the Working Party are reproduced in document WT/aCC/KHM/1/rev.6.

2. The Working Party met on 22 May 2001; 14 February and 14 november 2002; and 16 april and 22 July 2003 under the Chairmanship of Mr. a. Meloni (italy).

documentation provided

3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the Foreign Trade regime of Cambodia (document WT/aCC/KHM/2), the questions submitted by Members on the foreign trade regime of Cambodia, together with the replies thereto, and other information provided by the authorities of Cambodia (WT/aCC/KHM/3; WT/aCC/KHM/6; WT/aCC/KHM/7 and revisions 1 and 2; WT/aCC/KHM/8; WT/aCC/KHM/9; WT/aCC/KHM/10 and revisions 1 and 2; WT/aCC/KHM/12; WT/aCC/KHM/13 and revision 1; WT/aCC/KHM/14 and revision 1; WT/aCC/KHM/15 and revision 1; WT/aCC/KHM/16 and revision 1; WT/aCC/KHM/17 and revision 1; WT/aCC/KHM/18; and WT/aCC/KHM/20), including the legislative texts and other documentation listed in annex i.

introductory statements

4. The representative of Cambodia said that Cambodia had embarked on a process of fundamental political and economic reforms since the adoption of a new Constitution in 1993, which had restored the constitutional monarchy in his country. However, Cambodia was still heavily marked by two decades of armed conflict, which had resulted in important losses of human resources, and political and economic instability. The lack of skilled manpower remained a major obstacle on Cambodia’s way to economic development.

12 WTo BiSd 2003


5. His government had developed a “triangle strategy”, aimed at restoring peace, ensuring sustainable development, and integrating Cambodia into the world community. reforms had been implemented simultaneously in many areas, including administrative reform; legal and judicial reform of the financial, economic and trade regime; and military reform. Cambodia had joined the association of South-east asian nations (aSean) in april 1999.

6. accession to the WTo was one of the highest priorities of his government. Closer integration into the world economy was seen as a powerful instrument to alleviate poverty and the main driving force for socio-economic development. in reforming its trade system, his government had paid particular attention to aligning its policies and practices to WTo rules, especially the principles of MFn and national treatment. a tariff nomenclature based on the 1996 Harmonized System had been put in place, and numerous laws had been drafted and adopted to ensure compliance with WTo regulations.

7. implementation of WTo requirements was, however, a lengthy and difficult process. in view of the difficulties his country was facing, and bearing in mind Cambodia’s status as a least-developed economy, the representative of Cambodia called on members of the Working Party to be flexible in the negotiations to establish Cambodia’s WTo commitments and to extend special and differential treatment as foreseen in the provisions of the WTo agreements regarding least-developed countries (ldCs).

8. Members of the WTo welcomed the application from Cambodia to join the organization. WTo membership was considered important for Cambodia’s development and integration into the world trading system. appreciating the efforts already undertaken by Cambodia to achieve compliance with WTo rules and principles, they noted that further work was needed in this regard. Members pledged to work constructively with Cambodia in accomplishing this task, and several Members would offer technical assistance to facilitate Cambodia’s accession. Members looked forward to Cambodia’s early accession on appropriate terms. Some Members referred to Cambodia’s status as a least-developed country, and would consider this a relevant factor in establishing Cambodia’s terms of accession.

9. The Working Party reviewed the economic policies and foreign trade regime of Cambodia and the possible terms of a draft Protocol of accession to the WTo. The views expressed by members of the Working Party on the various aspects of Cambodia’s foreign trade regime, and on the terms and conditions of Cambodia’s accession to the WTo are summarized below in paragraphs 10 to 223.

eConoMiC PoliCieS

Monetary and fiscal policy

10. The representative of Cambodia said that the cornerstone of Cambodia’s

13WTo BiSd 2003

accession

monetary policy was low-inflationary economic growth. a restrained monetary policy had been maintained since 1993 to serve this end. as a result, annual inflation had fallen from three-digit levels in 1993 to single-digit figures at present.

11. The Cambodian banking system had undergone important changes since 1989, when the mono-type banking system had been replaced by a two-tier system comprising the central bank and commercial banks. The central bank – the national Bank of Cambodia (nBC) – was responsible for formulating and implementing Cambodia’s monetary policy. The main instruments used to control liquidity were mandatory reserve requirements, and limits on bank financing of the budget. The introduction of treasury bills as a complementary policy instrument had also been considered, and two issues of treasury bills had taken place in 2003.

12. Fiscal policy had been at the core of Cambodia’s reform strategy. domestic financing of the budget had been eliminated since 1999, and focus had shifted towards broadening the tax base and improved tax collection. The tax system had been reformed in January 1997 with the adoption of the law on Taxation. The law had introduced a turnover tax on the first sale of imported products (previously exempt); extended excise duties to automobiles, international air travel, and international communication services; imposed taxes on interest income and dividends; strengthened the application of minimum tax levels; subjected profits on exploitation of oil and gas and natural resources to a tax of 30 per cent; introduced income tax for government employees, elected officials, and employees of ngos; established a system of withholding tax; as well as replacing some turnover and consumption taxes by a value added tax. The ratio of tax revenue to gdP was still very low, and concentrated on few sources of revenue. in 2000, taxes had accounted for approximately 73 per cent of total government revenue, principally derived from customs duties (48 per cent), excises (12 per cent) and VaT (40 per cent).

13. Cambodia had established two taxation regimes, namely the “real regime” and the “estimated regime”. The “real regime” affected large and medium sized taxpayers, i.e. legal entities and individual businesses with annual turnover exceeding 500 million riels for goods (approximately US$130,000) or 250 million riels (US$65,000) for services, or 125 million riels (US$32,000) in the case of government contracts. large and medium sized taxpayers were subject to VaT, while other taxpayers were assessed a two per cent turnover tax under the “estimated regime”. The representative of Cambodia added that a “Simplified Tax regime”, similar to the “real regime” but covering smaller taxpayers and based on self-assessment, might

be introduced at a future date yet to be determined.

Foreign exchange and payments

14. The representative of Cambodia said that the objective of Cambodia’s exchange rate policy was to maintain a market-based exchange rate. The value of the national currency - the riel - had been freely determined by the market since

14 WTo BiSd 2003


1993. The national Bank intervened occasionally in the currency market to bolster international reserves and to smooth excessive exchange rate fluctuations.

15. Cambodia’s current foreign exchange system was based on the law on Foreign exchange of 1997. according to this law, all foreign exchange transactions including purchases and sales of foreign currency, transfers, and all types of international settlements and capital flows were permitted without restriction provided these were effected through authorized intermediaries (which would include foreign bank branches). Foreign currency transactions equalling US$10,000 or more were subject to a declaration. Cambodia did not require surrender of foreign exchange proceeds from imports or exports.

16. Cambodia had introduced current account convertibility of its currency as provided under article Viii Sections 2, 3 and 4, of the iMF articles of agreement, and had been granted membership under article Viii on 1 January 2002.

investment regime

17. The representative of Cambodia said that the law on investment of 4 august 1994, together with its Sub-decrees of 29 december 1997 and 11 June 1999, regulated all investment, domestic or foreign, in Cambodia. The law (article 8) granted national treatment generally to foreign investors, except in the ownership of land. He added that Cambodia would normally not prohibit or restrict foreign investment, except for reasons of national security and social safety, or when deemed necessary for economic reasons. Sectors subject to various forms of investment restrictions were listed in document WT/aCC/KHM/6, annex 1. in some cases, such as investment in rice milling, foreign investment was subject to local equity participation, to be determined through negotiations between the investors. Foreign investment in livestock and forestry required a local partner. The criteria governing these restrictions were laid down in Sub-decree no. 88 of 29 december 1997.

18. Cambodia’s Constitution (article 44) reserved the ownership of land for Cambodian citizens or legal persons with minimum 51 per cent Cambodian ownership. Foreign investors were allowed to lease or use land for up to 70 years in accordance with the 1994 investment law. a proposal to extend the time limit from 70 years to 99 years had been considered. The 2001 land law defined two types of land – concession land and leased land. Concession land could be leased for a period of maximum 99 years for agro-industrial projects. leased land was defined as real estate, including buildings and land, available for short-term or long-term lease. The leasing period could either be indefinite, or of specified duration. definite-period leases included short-term leases with a renewal option, or long-term leases for 15 years or longer.

19. Cambodia’s legislation guaranteed compensation in case of expropriation. article 44 of the Constitution stipulated that legal private property was protected by law, and the right to confiscate property could only be exercised in the public interest

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as provided for in the law and against fair and just advance compensation. article 9 of the law on investment provided a general guarantee against nationalisation. To enhance investor confidence further, Cambodia had concluded bilateral investment treaties to provide legal protection to foreign and domestic investors. Cambodia had concluded bilateral investment guarantee agreements with 12 countries (China, Croatia, France, germany, indonesia, Malaysia, the Philippines, the republic of Korea, Singapore, Switzerland, Thailand and Viet nam), signed and ratified an agreement with the overseas Private investment Corporation (oPiC) of the United States, and ratified the Multilateral investment guarantee agency (Miga) of the World Bank.

20. Cambodia provided incentives to stimulate investment in accordance with article 14 of the law on investment. These incentives were granted to Cambodian and foreign firms without discrimination upon application to the Council for the development of Cambodia (CdC). The Council processed applications within 45 days. incentives included (i) corporate tax at a rate of 9 per cent, except for exploitation of natural resources, timber, oil, mining, gold, and precious stones (30 per cent); (ii) tax holidays on corporate tax for up to eight years with five-year loss carry forward and exemption from all corporate tax for profits reinvested in Cambodia (the tax holidays were granted on socio-economic and geographic criteria laid down in annex iii of Sub-decree no. 88 of december 1997); (iii) no withholding tax on dividends; and (iv) unrestricted repatriation of profits. in addition, investment projects exporting 80 per cent or more of the production benefitted from full import duty exemption on construction materials, means of production, equipment, intermediate goods, raw materials and spare parts. The import duty exemption was also available for projects located in designated Special Promotion zones (SPz), the tourism industry, labour-intensive industries (e.g. garments, footwear and toys), agro-industry and food processing industries (i.e. canning), as well as physical infrastructure and energy generation (roads, bridges, airports, seaports, power generation, etc). incentives could be revoked according to article 7.2 of Sub-decree no. 88, and his government had been considering revising some of the incentives offered under the law on investment. Parliament had approved the “law on the amendment to the law on investment of the Kingdom of Cambodia” on 3 February 2003. The amended law revised some of the incentives, but also contained transitional provisions allowing the continuation of previously approved privileged profit tax rates for a further five years. The representative of Cambodia held the view that the prohibition on export subsidies defined in paragraph 1(a) of article 3 of the agreement on Subsidies and Countervailing Measures (aSCM) did not apply to Cambodia by virtue of article 27.2 of the aSCM. For further discussion of this issue, see the section on “export subsidies”.

State ownership and privatization

21. The representative of Cambodia said that private initiative had been encouraged in agriculture since 1987, while nationalised industries had been granted

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progressive autonomy from the State planning system in subsequent years. Private ownership was now a constitutional right enshrined in the 1993 Constitution.

22. Privatization had been carried out during a first phase from 1991 to mid-1993, and a second phase starting in april 1995. during the first phase, priority had been given to attracting foreign investors and maintaining employment. Sectoral Ministries had been granted authority to sell and lease State-owned enterprises within their area of responsibility with no external approval needed.

23. The second phase of the privatization process had been launched with new regulations intended to tighten and centralise the control over privatization. Under the leadership of the Ministry of economy and Finance, an inter-ministerial committee had been established to draw up an inventory of existing enterprises, formulate privatization strategies and monitor the privatisation process. The most important privatizations had taken place after 1995. He confirmed that foreign and domestic investors were treated equally in the privatization process, except with regard to the general restriction on foreign ownership of land.

24. as of april 2000, 177 enterprises had been privatized - mainly in manufacturing, agriculture and commerce – of which 152 had been leased to private investors, five were joint-ventures, and 20 had been sold off. eleven enterprises had been transformed into public enterprises and 16 remained to be privatized. a detailed status report is provided in Table 1(a), and enterprises in State ownership as per March 2003 are enumerated in Table 1(b). He added that 13 enterprises, which performed key public services to the Cambodian economy would be retained as State-owned enterprises upon completion of the privatization programme. Seven rubber companies would remain in State ownership until 2006. a list of the companies to be retained, including railway, water, electricity, and public works and transport enterprises, as well as agricultural companies, is provided in Table 1(c).

25. The representative of Cambodia stated that his government would ensure the transparency of its ongoing privatization programme and would keep WTo Members informed of progress in the reform of its economic and trade regimes. He stated that his government would provide periodic reports to WTo Members on developments in its programme of privatization as long as the privatization programme would be in existence, along the lines of that already provided to the Working Party. He also stated that his government would provide periodic reports on other issues related to its economic reform as relevant to its obligations under the WTo. The Working Party took note of these commitments.

Pricing policies

26. The representative of Cambodia said that price controls had been lifted in 1989. Prices for goods and services were determined freely by the market, except for electricity and water. electricity prices were regulated by the Ministry of industry, Mines and energy pursuant to Sub-decree 35 of 26 april 1999, while the regulation

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of water user charges rested with municipal and provincial bodies. as for the future use of price controls, this was a matter still to be addressed by his government.

27. The representative of Cambodia confirmed that, from the date of accession, in the application of price controls, Cambodia would apply such measures in a WTo-consistent fashion, and take account of the interests of exporting WTo Members as provided for in article iii.9 of the gaTT 1994, and in article Viii of the general agreement on Trade in Services (gaTS). He also confirmed that Cambodia published the list of goods and services subject to State control and any changes in its official gazette and would continue to do so after accession. The Working Party took note of these commitments.

Competition policy

28. The representative of Cambodia said that Cambodia did not have a competition law, but Cambodia was seeking assistance to draft legislation to ensure fair competition in various business activities. asked to provide information on how Cambodia was addressing the provisions of article Viii of the gaTS concerning monopolies and exclusive service suppliers, he said that in general his government was pursuing a policy of gradual liberalization of previously monopolized services to involve private participation, including foreign competition.

FraMeWorK For MaKing and enForCing PoliCieS

29. The representative of Cambodia said that Cambodia was a constitutional monarchy. The Constitution had been promulgated in September 1993. The Monarch was Head of State and held his function for life. The Monarch appointed the Prime Minister and Council of Ministers, as well as the Commander-in-Chief of the royal Cambodian armed Forces. He signed decrees on the appointment, transfer or dismissal of high civil or military officials and judges, declared war, and could proclaim a state of emergency. Moreover, he signed and thereby ratified international treaties and conventions approved by the national assembly.

30. legislative powers were exercised by the national assembly, composed of 122 members elected for 5 years in direct and general elections, and the Senate, made up of 61 members. The national assembly was the only organ empowered to adopt laws. other functions of the assembly included approval of the national budget, the government’s programmes and strategies, and proposals by the government to introduce, reduce or annul taxes. legislation usually originated in the relevant line ministries. draft legislation approved by the Council of Ministers was presented to the assembly for review and enactment. The Senate reviewed the laws passed by the national assembly and could make binding recommendations to the assembly on the proposed legislation. legislation was promulgated by signature of the Monarch and became effective in the capital ten days after signature and throughout the country within 20 days. laws violating constitutional principles could be annulled by the Constitutional Council, composed of nine members designated for nine-year terms

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by the Monarch, the national assembly and the Supreme Council of Magistracy. The President of the national assembly was a member of the Council of the Throne, which decided on the succession of the throne. The President of the Senate acted as Head of State in the absence of the Monarch (or if unable to fulfil his functions).

31. Judicial power was exercised by independent courts, judging on the basis of the Constitution, existing laws and international agreements ratified by the Kingdom. Cambodia’s judicial system comprised lower courts, including provincial, municipal and military courts, an appellate Court and a Supreme Court. However, the Supreme Court foreseen in the September 1993 Constitution had not been established so far. Pending its establishment, decisions of the appellate Court could be appealed to the Supreme Court established by the former State of Cambodia. according to the 1993 Constitution, the Supreme Court would be responsible for judicial review of the law and appeals of decisions rendered by the appellate Court.

32. Cambodia’s present judicial system did not provide for specialised courts, such as administrative or commercial courts. at present, administrative decisions could be appealed to the higher authority in the Ministries concerned, i.e. to the Minister. These rulings could, in turn, be appealed either to the courts or to the Prime Minister. Cambodia recognized the need to establish an appeals process, both administratively and to an independent tribunal to meet the requirements of article X of the gaTT 1994 and other such provisions in WTo agreements, e.g. customs valuation and other procedures, trade remedies, and import licensing and quotas. in this regard, Chapter iii of the draft law on Judicial organization envisaged the right to appeal of administrative decisions before the administrative Chamber of the appellate Court. decisions of the administrative Chamber could then be appealed before the Supreme Court. as per June 2003, the draft law on Judicial organization was being examined by the Council of Ministers and would subsequently be submitted to Parliament.

33. as for commercial disputes, the Ministry of Justice together with the Ministry of Commerce were preparing a draft law establishing a Commercial Court. in the interim, commercial cases were brought before provincial and municipal courts. Voluntary settlement of commercial disputes came within the competence of the Chamber of Commerce, empowered to act as an arbiter under article 9 of the 1995 Chamber of Commerce law. Cambodia had ratified the new York Convention on the enforcement of Foreign arbitral awards on 5 January 1960. The Ministry of Commerce was preparing a law on Commercial arbitration to implement the new York Convention.

34. a Member noted that commercial cases were being heard in common courts, pending the establishment of a Commercial Court system. The present system did not, in his view, offer businesses adequate legal protection. This Member considered the establishment of a Commercial Court system with trained judges and staff essential to create a climate of transparency and predictability, and the system or a functional equivalent should therefore be in place by the date of accession. This Member also

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noted that Cambodia had ratified the new York Convention on the enforcement of Foreign arbitral Judgments, and asked what legislative action the Ministry of Commerce was taking to implement the Convention.

35. The representative of Cambodia confirmed that the national assembly and the Senate had adopted a law ratifying the new York Convention on the enforcement of Foreign arbitral awards in 2002. He further confirmed that, as indicated in document WT/aCC/KHM/10/rev.2, the Ministry of Commerce was developing a draft “law establishing the Commercial Court” to implement the Convention. The draft law had been approved by the Council of Ministers in March 2003 and was currently being considered by Parliament. He expected the process of adopting and promulgating the law to be completed by June 2004. He noted that Cambodia was receiving some technical assistance in this area, and that his country was seeking more extensive and predictable assistance. He further confirmed that a Commercial Court system with trained judges and staff essential to create a climate of transparency and predictability, or a functional equivalent, should therefore be in place by the end of 2004.

36. The representative of Cambodia confirmed that a system of appeal from administrative decisions in matters covered by WTo agreements to an independent tribunal, as provided for in article X of the gaTT and other WTo agreements, was in the process of being established in the draft law on Judicial organization, and would be operational by december 2004. in addition, the Commercial Court system would be established by 1 January 2005. The Working Party took note of this commitment.

37. The representative of Cambodia said that the Council of Ministers, or royal government, was the executive branch of the Kingdom of Cambodia. The Council was accountable to the national assembly and chaired by the Prime Minister. The Prime Minister was in charge of executing the decisions taken by the Council. He presented decrees to the Monarch for signature, and could issue sub-decrees on his own authority, upon approval of the Council of Ministers. individual ministers issued ministerial decrees, decisions and circulars. once signed, all regulatory acts were published in the official Journal.

38. Policies related to foreign trade were formulated and implemented by the Ministry of economy and Finance, in close co-operation with the Ministry of Commerce, the Council for the development of Cambodia, the national Bank of Cambodia, the Ministry of Planning, and the Ministry of industry, Mines and energy. Border control of international trade fell under the competence of the Customs department, which was in charge of tax collection and the preparation of tariff schedules. The Ministry of Commerce registered foreign business activities. The Ministry of Commerce also participated in border control, fraud repression, in the formulation and implementation of technical standards, and in the development of policies concerning intellectual property rights. The Council for the development of Cambodia implemented investment regulations, while issues related to industrial and technological development, exploitation of natural resources and the production and

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supply of electricity and potable water fell under the competency of the Ministry of industry, Mines and energy. He confirmed that provincial and municipal authorities had no jurisdiction over policies affecting foreign trade, such as in the areas of subsidies, investment, application of taxes, charges on imports not applied to domestic goods, or quantitative restrictions on imports or exports. Cambodia confirmed that local authorities will have no such authority in export processing zones within their jurisdiction.

39. The Ministry of Commerce acted as the focal point for activities related to WTo accession. The WTo office of the Ministry had 10 professional staff. in addition, an inter-Ministerial Co-ordinating Committee on WTo accession, chaired by the Minister of Commerce, had been established in September 1997. The role of this Committee, which counted 15 members at the policy level and three officials from each of the 23 ministries and agencies involved in WTo activities at the working level, was to (i) coordinate policy issues related to WTo accession; (ii) elaborate guidelines to implement WTo agreements; (iii) prepare the necessary documentation; (iv) define the government’s priorities related to foreign trade policies; (v) ensure coordination among Ministries; and (vi) report to the Prime Minister on issues related to WTo accession. in august 2001, his government had appointed a working group comprising more than 110 senior government officials to assist in matters related to Cambodia’s accession to the WTo.

40. international treaties, conventions and inter-governmental agreements concerning economic, technical, cultural and defense co-operation were negotiated by the Prime Minister and, after approval by the national assembly, ratified and promulgated by the Monarch. Specifically concerning the ratification process of Cambodia’s Protocol of accession, a package including the Protocol and all WTo agreements and legal documents would be submitted by the royal government to the national assembly and the Senate for adoption. The package would then be presented to the Monarch for promulgation, after which it would be published in the official Journal. He confirmed that WTo provisions would prevail over national legislation, with the exception of Cambodia’s Constitution, in case of conflict between domestic legislation and the WTo agreements.

41. He added that compliance with WTo agreements required the preparation of many important pieces of legislation in Cambodia. He provided an agenda for enacting laws for WTo Conformity in document WT/aCC/KHM/10, which was subsequently revised and up-dated on a regular basis (see revision 1 of 31 July 2002, revision 2 of 3 March 2003, and revision 3 of 17 June 2003). in this respect, a Member was concerned about the long period foreseen for the adoption of the Civil Procedure Code, which underpinned the effective enforcement of other laws. The representative of Cambodia replied that the draft Civil Procedure Code would be submitted to the Council of Ministers in the near future. The most recent version of Cambodia’s agenda for enacting laws for WTo Conformity and adopting

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regulations/instructions is reproduced in the attachment to annex i.

PoliCieS aFFeCTing Trade in goodS

Trading rights (the right to import and export)

42. The representative of Cambodia said that the law on Commercial regulations and the Commercial register of 3 May 1995, as amended on 18 november 1999, required all commercial enterprises operating in Cambodia to register with the Ministry of Commerce. Copies of the “instruction Circular on Commercial registration at the Ministry of Commerce” and the “announcement on Commercial registration”, both dated 3 december 1997, were reproduced in document WT/aCC/KHM/2, annex 7B.

43. Commercial enterprises could register in the form of sole proprietorships, general partnership, limited partnership, private limited company, single member private limited company, public limited company, public institution, State enterprise, or joint venture. natural persons perse could not engage in import activities as the law on Commercial regulations and the Commercial register allowed registration of legal entities only. However, an individual could register, for example, as a single shareholder limited liability company.

44. a prohibition on companies with less than 51 per cent Cambodian ownership to engage in import/export activities for the sole purpose of re-selling goods without transformation had been abolished pursuant to a declaration of the Ministry of Commerce of 25 January 2000. He confirmed that all firms, foreign and domestic, properly registered with the Ministry of Commerce, could engage in import and export activities of all types of goods except military equipment and narcotic drugs. Trade in forestry products could only be conducted by licensed concessionaires (domestic or foreign) according to article 4, Chapter 2 of Sub-decree no. 05 of 7 February 2000. a firm could amend its registration to include import and export activities by filing an application to amend its Memorandum and articles of association to the Ministry of Commerce. The amended registration would be deposited at the office of Commercial registry at the Ministry.

45. registration required a company official to appear in person and deposit the required documentation - including a completed registration application Form, the Memorandum and articles of association, a Statement of Conformity, a certificate of the estate title or lease agreement, and copies of the identification papers as well as photographs of the company directors and shareholders - with the Ministry of Commerce. applications which were not supported by the required documentation would be rejected. The procedure to enrol in the Commercial register took about two weeks. The registration fee amounted to 260,000 riels (approximately US$70) for national and foreign companies. in addition, companies investing in Cambodia and applying for project approval for purposes of securing investment incentives were required to pay registration fees to the Council for the development of Cambodia

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(CdC) in accordance with the law on investment of 4 august 1994. These fees amounted to US$600 for investment projects up to US$1 million and US$1,200 for investment projects above US$1 million.

46. Some members were concerned that the requirement to provide photographs of the directors and shareholders of a limited liability company would be unnecessarily burdensome for large companies with many stockholders, e.g. foreign firms wishing to establish operations in Cambodia. in reply, the representative of Cambodia said that the same requirements applied to domestic and foreign firms engaged in trade. according to Cambodian legislation, a private limited company could not have more than 30 individual shareholders. a public limited company needed only to submit photographs of the members of its board of directors. The photo requirement was applied for security reasons, principally to avoid fraud. He did not believe the requirement created obstacles for companies registering in Cambodia.

47. noting that importation of pharmaceuticals was limited to pharmacists and the importation of agricultural inputs to agricultural technicians (see the section “Quantitative import restrictions, including prohibitions, quotas and licensing systems” below), a Member asked whether Cambodia distinguished between the right of importation and the right to distribute such products domestically. This Member sought recognition of the right to import, i.e. to be the importer of record, as a separate status from that of distribution, and would therefore welcome steps by Cambodia to simplify requirements to import, on the understanding that stricter requirements might be maintained for distributors within Cambodia’s market.

48. The representative of Cambodia clarified that among the imported agricultural inputs only veterinary medicine was reserved for agricultural technicians. He added that, in practice, importers of agricultural inputs and pharmaceuticals also distributed the goods within Cambodia, and it would be difficult to separate the importation and distribution functions in a country such as Cambodia.

49. Based on this information, a Member concluded that Cambodia had placed restrictions on imported pharmaceuticals and veterinary medicines which would not apply to domestic production of similar products. Cambodia was therefore requested to amend its laws to distinguish explicitly between the right to be the importer of record, and the right to distribute. The registration and technical requirements currently placed on importers should be transferred to distributors, and Cambodia should ensure that these requirements would be applied in a manner that would result in treatment no less favourable to imports than to similar domestic products.

50. The representative of Cambodia confirmed that it was not the intent of his government that the current requirements for importation of pharmaceuticals or of veterinary medicines should discriminate against imports. in this regard, he further confirmed that no later than 1 June 2005, Cambodia would amend its legislation, e.g., the law on drug Management and Prakas no. 82 of 31 March 1999 on “Procedures

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for exports and imports of Pharmaceuticals”, so as not to abridge the right to import and to export, and that any registered entity could be the importer or exporter of record. He confirmed that from that date, Cambodia would ensure that its laws and regulations relating to the right to trade in goods and all fees, charges or taxes levied on such rights would be in full conformity with its WTo obligations, including articles Viii:i(a), Xi:i and iii:2 and 4 of the gaTT 1994 and that it would also implement such laws and regulations in full conformity with these obligations. He confirmed in particular that this was recognized as without prejudice to requirements that might be placed on distributors of domestic and imported products to preserve plant, animal or human health, life, or safety. The Working Party took note of these commitments.

1. import regulation

Customs tariff

51. The representative of Cambodia said that the Customs and excise department had embarked on a Customs reform and Modernization Programme aimed at creating a modern customs administration combining efficient revenue collection and protection at the border with the needs of the private sector for fast, straightforward and reliable customs services. Major elements of the reform programme included strengthening of the legal framework, restructuring of the customs tariff, modernization and streamlining of customs procedures, expansion of international relations, effective enforcement, automated systems and procedures, measures to strengthen the Customs and excise department, better service to the public and trade facilitation. a summary of the reform strategy was provided in document WT/aCC/KHM/6, annex iV.

52. The law on import and export duties of 15 September 1989, as subsequently modified by decisions of the Ministry of economy and Finance, constituted the legal basis for the imposition of tariffs. Cambodia’s customs tariff was specified at 8 digits. The tariff nomenclature comprising 6,823 tariff lines in 2001 conformed to the 1996 version of the Harmonized System (HS) at the six-digit level. all rates were advalorem. at present, only MFn rates of duty existed, except for CePT (Common effective Preferential Tariff) products originating within aSean. as member of aSean, Cambodia was committed to extend tariff preferences as stipulated in the aSean agreement on a reciprocal basis.

53. in reforming its tariff structure, Cambodia had reduced the number of tariff bands from 12 to 4 at present (0, 7, 15, and 35 per cent). The highest tariff rates of 40, 50, 90 and 120 per cent had been abolished. items subject to the maximum applied rate of 35 per cent were listed in document WT/aCC/KHM/6, annex iii. The simple average applied rate of duty had amounted to 16.4 per cent in 2001, and the objective was to achieve an average tariff level below 15 per cent by 2003/04. While Cambodia was reducing its import duties, excise taxes were being increased to ensure that the tax reform would be revenue neutral.

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other duties and charges

54. The representative of Cambodia confirmed that other than ordinary customs duties, Cambodia imposed no duties or charges of any kind within the meaning of article ii:1(b) of the gaTT 1994 on or in connection with importation, except for petrol and diesel (HS codes 2710 00 21, 2710 00 22, 2710 00 23, 2710 00 24, 2710 00 25, 2710 00 26, 2710 00 71, 2710 00 72 and 2710 00 79). on these two items, his government was imposing a charge of US$0.02 and US$0.04 per litre, respectively. He confirmed that these other duties and charges were being transformed and incorporated into a compound tariff rate. The representative of Cambodia further confirmed that Cambodia would bind these charges and all other charges within the meaning of article ii:1(b) of the gaTT 1994 at zero, in its Schedule of Concessions and Commitments on goods.

55. The representative of Cambodia stated that the application of “other duties and charges” other than the normal customs duties and fees and charges for services rendered would be in accordance with WTo provisions from the date of accession. He further confirmed that Cambodia has bound “other duties and charges” as defined in article ii:1(b) of the gaTT 1994 at zero in its goods Schedule. The Working Party took note of this commitment.

Tariff rate quotas, tariff exemptions

56. The representative of Cambodia said that the law on import and export duties of 1989, article 9.1, allowed importation free of customs duty for (i) temporary imports for re-export; (ii) goods in transit; (iii) personal items of Cambodians having resided abroad; (iv) imports by diplomatic missions, for humanitarian or religious purposes, etc.; and (v) border trade within limits determined by the Ministry of Finance. although the draft law on Customs did not define or make reference to the concept of border trade, he confirmed that Cambodia’s practice was within the meaning of article XXiV:3(a) of the gaTT 1994. Tariff exemptions were also accorded on goods imported in connection with investment projects approved by the Council for the development of Cambodia in accordance with the 1994 law on investment. in addition, the Prime Minister had the authority to order ad hoc exemptions for compelling reasons of national interest, primarily emergency situations (article 5 of the draft law on Customs). Thus, 120 cars had been imported free of duty for the members of the national assembly in 1994, but no such exemptions were currently in force. all tariff exemptions were applied on an MFn basis.

57. noting a statement by the representative of Cambodia that Cambodia did not apply tariff quotas at present, but might consider the introduction of tariff rate quotas on certain agricultural imports in the future, some Members emphasized that such measures would complicate Cambodia’s market access negotiations, and would involve complex procedures in establishing proper access conditions, as well as non-discriminatory and transparent allocation and administration of the tariff quota system.

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58. The representative of Cambodia took note of these comments. although Cambodia had not resorted to tariff rate quotas so far, Cambodia would reserve its right to implement such quotas depending on the outcome of the accession negotiations. Cambodia confirmed that it would respect WTo disciplines on tariff rate quotas.

59. The representative of Cambodia stated that upon accession to the WTo, any tariff exemptions would only be implemented in conformity with the relevant WTo provisions including article i of the gaTT 1994 and the TriMs agreement. The Working Party took note of this commitment.

Fees and charges for services rendered

60. The representative of Cambodia said that Cambodia applied a fee of 15,000 riels (nearly US$4) per import/export declaration. The fee was levied on imports from all sources, including Cambodia’s preferential trading partners. The charge corresponded to the cost of printing the customs declaration form and the time spent by customs officers in processing the declaration. Some 100 customs officials processed approximately 6,000 customs declarations every month.

61. Some Members requested that Cambodia review the fee for the provision and processing of import/export declarations, referring to the public service nature of this function. in reply, the representative of Cambodia considered Cambodia’s user or processing fees commensurate to the costs of the services rendered, and thus not in conflict with WTo provisions.

62. The representative of Cambodia stated that all fees and charges for services related to imports and exports would be operated in conformity with the provisions of the WTo agreement, in particular articles Viii and X of the gaTT 1994. The representative of Cambodia also stated that, from the date of accession, Cambodia would not apply, introduce or reintroduce any fees and charges for services rendered that were applied to imports on an ad valorem basis. information regarding the application and level of such fees and charges, revenues collected and their use, would be provided to WTo Members on request. The Working Party took note of these commitments.

application of internal taxes

63. The representative of Cambodia said that Cambodia levied excise taxes in accordance with the law on Taxation of 1997. Tax rates, which were identical for imported and domestically produced goods, were applied on the ex-factory price for domestic goods and the tariff inclusive CiF value of imports. The excise tax amounted to 10 per cent for soft drinks, beer, wine and spirits, cigarettes and other tobacco products, and petrol and lubricating oil. For automobiles, buses, trucks, motorcycles and spare parts the tax ranged from 5 to 110 per cent, as indicated in Table 2. He added that Cambodia did not have a domestic automobile manufacturing industry at present.

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64. Some Members noted that Cambodia had introduced a tax of 3 per cent, applied solely to imported alcohol and tobacco products, in late 1998. Cambodia was requested to bring this tax into conformity with article iii of the gaTT 1994. The representative of Cambodia replied that the 3 per cent tax in effect on imported alcohol and tobacco products since September 1999 had been extended to domestically-produced items on 1 January 2002.

65. The representative of Cambodia said that value added tax had replaced the former turnover and consumption taxes on 1 January 1999 in accordance with the law on Taxation of 8 January 1997. VaT was levied at a single rate of 10 per cent on goods and services. exports, including international transportation of passengers and goods, were zero rated. on imported goods, VaT was applied uniformly on imports from all sources on the CiF value including customs duties and excise taxes (if applicable).

66. Some Members noted that the value added tax system was being introduced gradually in Cambodia, and asked what steps Cambodia was taking to bring the system into conformity with the national treatment provisions of the WTo. Cambodia was urged to eliminate any discrimination in the application of the value added tax to domestically-produced and imported products.

67. in reply, the representative of Cambodia provided a descriptive note on the operation of VaT in document WT/aCC/KHM/18. at first, the VaT system had been applied only to 1,000 large and medium taxpayers – based on annual turnover - in the capital Phnom Penh. The system had subsequently been extended to additional entities in Phnom Penh as well as taxpayers in five other provinces. a further five provinces had been added in 2002, and the number of taxpayers was increasing rapidly, currently comprising some 2,900 entities. The Ministry of economy and Finance had conducted a survey of taxpayers in all provinces in 2000 and 2001, and the most recent expansion in coverage included all provinces with taxpayers meeting the VaT threshold (see paragraph 13 for information on the thresholds).

68. Small taxpayers were not required to pay VaT. instead, they were assessed a tax of 2 per cent on their annual turnover. The rationale for this dual system was that the administration and compliance costs of a full-fledged VaT regime would outweigh the expected revenue to be collected from small taxpayers. entities not required to pay VaT could register voluntarily if they considered it to be in their interest to do so.

69. Certain goods and services were exempt from VaT, notably public postal services; hospital, clinic, medical, and dental services, and the sale of medical and dental goods; transportation of passengers by wholly State-owned public transport entities; insurance and primary financial services; public-interest non-profit activities; imported articles for personal use exempt from customs duties; goods imported by foreign diplomatic and consular missions, international organizations

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and technical cooperation agencies of other governments, for official use; and 10 categories of agricultural inputs and/or “raw agricultural products” such as fertilizer, plant seeds, veterinary medicines, animal feeds, breeding stock, small tractors and spare parts, and miscellaneous agricultural machinery (Prakas no. 303 MeF/Td of 23 May 2001). imported agricultural inputs exempted from VaT are listed in Table 3. The Council of Ministers had reaffirmed that VaT on imported and domestically-produced agricultural products should be identical at a full Cabinet meeting on 20 december 2002. Since July 2001, the estimated revenue foregone due to the VaT exemptions had amounted to 2 billion riels in the second half of 2001 and 1.5 billion riels in the first five months of 2002.

70. a Member noted that Cambodia’s present VaT system appeared to provide a de facto exemption for certain domestic goods, especially agricultural goods, and thus in practice would seem to be at odds with the december 2002 Council of Ministers decision on the equivalence of domestic and imported goods for the purposes of VaT.

71. The representative of Cambodia confirmed that from 1 January 2003, his government had applied the VaT on imported and domestically produced agricultural products equally and in conformity with article iii of the gaTT 1994 and that the exemption provided to certain farmers from the application of the VaT to their output was due to the fact that they did not meet the minimum income threshold for mandatory application of the VaT, and had the option of the turnover tax on total sales. The representative of Cambodia further confirmed that, from the date of accession, Cambodia would apply its domestic taxes, including those on products listed in Tables 2 and 3 and paragraphs 63 to 70 in strict compliance with article iii of the gaTT 1994 and in a non-discriminatory manner to imports regardless of country of origin. The Working Party took note of this commitment.

Quantitative import restrictions, including prohibitions, quotas and licensing systems

72. The representative of Cambodia said that importation of narcotic drugs and poisons, including many pesticides, was prohibited. a list of products banned from importation into Cambodia is reproduced in Table 4.

73. initial information on import licensing procedures was provided in document WT/aCC/KHM/2, annexes 3 and 8, and revised information in documents WT/aCC/KHM/17, WT/aCC/KHM/17/rev.1 and WT/aCC/KHM/17/rev.2. He noted that Cambodia applied no quantitative restrictions on imports. However, a limited licensing system had been established for the protection of human health, consumer interests, national security, and to protect the environment. Products subject to import licensing are enumerated in Table 5. He stressed that the system was not designed to restrict the quantity or value of imports, except for pesticides. He confirmed that products not identified in document WT/aCC/KHM/17 and its revision 1 were free from licensing requirements.

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74. non-automatic licences were applied to imports of aircraft and parts, ships and boats for military purposes. The government was the only legal importer of arms, military equipment and related goods in Cambodia. Upon approval by the government, the Ministry of defence and the Ministry of interior would be authorized to import such products. The Ministry of defence administered imports of explosives, ammunition, military hardware, and other related products for military purposes in accordance with governmental Sub-decree no. 38 of 30 april 1999 on Management and Control of the imports, Production, distribution and Sale of all kind of explosives and ammunition. importation of the same products for security purposes was administered by the Ministry of interior. These were the only two Ministries authorized to import military equipment and related goods. in practice, the Ministries would not handle all logistical aspects of the procurement, but would sub-contract a firm or manufacturer to assist in the purchase and shipment of the goods.

75. The Ministry of agriculture, Forestry and Fisheries (MaFF) issued licenses (authorization letters) for importation of agricultural inputs, principally pesticides and fertilizer, in accordance with the Sub-decree on Standards for and Management of agricultural Materials of 28 october 1998. Firms wishing to import should be registered with the Ministry of Commerce and the products should be registered and authorized by the Ministry of agriculture, Forestry and Fisheries (MaFF). at present, 15 companies were authorized to import agricultural inputs. registration was also required for the products to be imported. The quantity of pesticides imported by individual companies could be restricted due to safety requirements, including appropriate storage facilities, as well as domestic demand. The department of agronomy and agricultural land improvement at the MaFF would estimate the need for pesticides on an annual basis, taking into account factors such as the size of the cultivated areas, type of crop planted, and seasonal infection ratios. in the future, Cambodia was considering either to allow registered goods into warehouses and release for sale or use after inspection, or to allow for accreditation of pesticides through bilateral agreements with the countries of origin. Cambodia was not in a position to undertake risk assessment at present, and would welcome assistance in developing such capacity. Fertilizer imports were licenced to minimize the environmental impact of soil degradation, acidity or salinity.

76. asked to provide further detail on the import regime applicable to pesticides, in particular regarding restrictions based on domestic demand, the representative of Cambodia added that local conditions often led to rapid degradation of pesticide products, and thus expensive and potentially environmental harmful disposal of such products. data on areas under cultivation and pest infestation levels allowed his authorities to estimate the needs for pesticides in any given crop year. import licences were granted on a first come, first served basis up to the estimated requirements. The authorities could decide to authorize additional imports, and all registered importers would be informed of such decisions. Fully-stocked individual importers could be denied licenses as a temporary measure until they would have the necessary capacity

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to store additional products. Cambodia had no plans to allow petitions for import tolerances, but as a Member of aSean Cambodia would adhere to the maximum residue limits of aSean as well as to Fao standards. The current import measures were applied due to Cambodia’s limited capacity for safe handling and storage of pesticides, and could therefore, in his opinion, be justified under article XX(b) of the gaTT 1994.

77. The representative of Cambodia confirmed that, no later than 1 June 2005, Cambodia would eliminate quantitative restrictions on the importation of fertilizers, pesticides and other agricultural inputs as described in paragraphs 75 and 76 and establish a WTo-consistent method of registration and review of imported agricultural chemicals. requirements related to the safe storage and domestic distribution of these products would apply only to domestic distributors or to importers using bonded storage prior to domestic distribution. He further confirmed that, in the context of Cambodia’s implementation of the WTo agreement on Technical Barriers to Trade, that from 1 January 2007 Cambodia would rely on the provisions of that agreement to regulate domestic and international trade in these items, and that the commitment contained in paragraph 50 would also apply to requirements for registration and licensing fees for importers of agricultural inputs from 1 June 2005. The Working Party took note of these commitments.

78. Cambodia had experienced problems with counterfeit pharmaceuticals and drug trafficking, and permission was accordingly needed for the importation of pharmaceutical products and materials, vitamins and hormones in accordance with the law on drug Management and Prakas no. 82 of 31 March 1999 on “Procedures for exports and imports of Pharmaceuticals”. The importer should be a pharmaceutical company registered at the Ministry of Commerce and authorized by the Ministry of Health. at present, 90 companies were registered as authorized importers at the department of drugs and Food. registration was also required for the products to be imported. The licensing procedure for first consignments of pharmaceuticals and vitamins would normally take three weeks due to laboratory analyses. licenses for subsequent consignments could be issued within one week as further laboratory analysis would not be necessary. information on the procedure to be followed was published in the official Journal of the Ministry of Health.

79. a Member stated that Cambodia’s regulations could potentially violate the principle of national treatment and restrict trading rights. While this Member recognized the need to apply technical regulations or standards for agricultural inputs and pharmaceuticals, current practices in Cambodia seemed based on the assumption that there was no domestic production. This assumption was not valid for pharmaceuticals, and might not remain so for fertilizers and pesticides. Cambodia was requested to clarify that there would be no requirement for an importer of record to establish a commercial presence in Cambodia, or to negotiate the right to import.

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80. responding to concerns that the registration regime for importers of agricultural inputs and pharmaceutical products and materials might restrict imports indirectly or constitute a non-tariff measure, the representative of Cambodia underlined that Cambodia’s legislation allowed any physical or juridical person to seek registration, and registration would be granted subject to the fulfilment of objective criteria related to safety, availability of necessary facilities or staff qualifications. The relatively low number of registered importers of agricultural inputs and pharmaceutical products and materials reflected the limited size of the domestic market. He noted, for example, that among the 90 firms authorized to import pharmaceutical products, only 30 of them had actually engaged in import trade in 2002. as noted in document WT/aCC/KHM/17/rev.1, Cambodia required a Certificate of good Manufacturing Practice (gMP), issued in accordance with guidelines established by the WHo. each country could issue its own certificate to local manufacturers, but the evaluation criteria should follow the WHo Standard guidelines for gMP. in urgent cases, import licenses could be granted within three days.

81. import licences issued by the Ministry of Health were valid for six months and could be extended upon request. licences for agricultural inputs were valid for one year and were also extendable. These import licences were issued free of charge, but each pharmaceutical product registered with the Ministry of Health was subject to a one-time fee of US$200 (Prakas of the Ministry of Health no. 254 of 13 June 1996), and each agricultural input registered at the MaFF was subject to a registration fee of US$30. other import licences were issued against a fee of 15,000 riels and were valid for three months. The validity of these licences could, upon request, be extended for an additional two months. a complete licence application would normally be processed within seven days. licensing decisions could be appealed through the judicial and administrative procedures established in Cambodia.

82. The representative of Cambodia confirmed that from the date of accession, his government would not introduce, re-introduce or apply other non-tariff measures such as licensing, quotas, prohibitions, bans and other restrictions having equivalent effect that could not be justified under the provisions of the WTo agreements. if balance-of-payment measures were necessary, Cambodia would impose them in a manner consistent with the relevant WTo provisions, including article XViii of the gaTT and the Understanding on Balance-of-Payments Provisions of the gaTT 1994. He further confirmed that any discretionary authority permitting the government of Cambodia to suspend imports or licensing requirements that could suspend, ban, or otherwise restrict the quantity of trade would be applied from the date of accession in conformity with the requirements of the WTo. The Working Party took note of these commitments.

Customs valuation

83. Some Members noted that Cambodia’s present customs valuation regime, based on the law on Customs duty and Tax on imports and exports of goods of

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1989, was not in compliance with the agreement on implementation of article Vii of the general agreement on Tariffs and Trade 1994 (Customs Valuation agreement) and that Cambodia intended to address the deficiencies in a new law on Customs and its implementing regulations. in this connection, these Members reminded Cambodia about the provisions of the agreement regarding valuation hierarchy, prohibited methods of appraisement, confidentiality, right of appeal, transparency, sureties for the release of merchandise, and the adoption of the interpretative notes. among the problems mentioned by Members were duplication of work by customs agencies, customs red tape, delays in the processing of documents, and over-valuations or inconsistent valuations. Some Members agreed that certain aspects of the agreement could be implemented over time, but hoped that the length and breadth of any transitional arrangements would be limited. in their view, critical provisions central to the issue of market access and the maintenance of a stable, predictable trade regime should be in place at the time of Cambodia’s accession to the WTo. Cambodia should not expand the use of minimum prices beyond the products currently listed in its legislation, and the prohibited methods of valuation should not otherwise be used.

84. in reply, the representative of Cambodia said that the new draft law on Customs had been approved by the Council of Ministers and was planned for adoption by the national assembly by July 2004. regulations would be developed upon completion of the drafting of the new law, including regulations to implement articles 17-24 of the agreement, as well as the interpretative notes in annex i of the agreement and would be made available to WTo Members for review. He emphasized that Cambodia would seek a transition period. an action Plan for the implementation of the Customs Valuation agreement was provided in document WT/aCC/KHM/13, and a revised action plan in document WT/aCC/KHM/13/rev.1.

85. implementation of the hierarchy of valuation techniques implied that Cambodia’s present use of minimum values would need to be phased out and replaced by the transaction value provisions of the agreement. items currently subject to minimum customs values are listed in Table 6. His government considered that a move to transaction value at the time of Cambodia’s accession to the WTo would pose major risks to government revenue. He therefore proposed that minimum customs values be phased out gradually over a period of five years, with full compliance with the Customs Valuation agreement to be achieved by the end of 2008. The challenges facing the customs administration at present included a low rate of voluntary compliance by importers, lack of sound accounting systems and record keeping, and the limited capacity of the Customs and excise department to administer transaction valuation provisions. Time would be needed to educate importers in the new valuation provisions, proper customs record keeping and accounting systems, as well as for Customs to develop its internal administrative procedures, such as post-clearance audit, and to educate staff. The Customs and excise department would seek technical assistance in preparing and implementing the transition plan.

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86. Some Members noted that Cambodia appeared also to be using data on reference prices provided by a Preshipment inspection (PSi) firm. The Customs Valuation agreement strictly prohibited such practice, and Cambodia should eliminate it prior to the date of accession.

87. The representative of Cambodia confirmed that Cambodia was using a reference database, but only as a guide for appraising valuation declarations. The database would not be used to establish actual transaction values, but only as a reference for establishing the reasonableness of values and for risk assessment purposes, in compliance with the agreement. The representative of Cambodia confirmed that, aside from the products listed in Table 6 for which Cambodia used minimum values, Cambodia would not make use of reference prices to establish actual transaction values.

88. Concerning the transparency of legislation, the representative of Cambodia noted that article 93 of Cambodia’s Constitution required laws to be published in the official gazette and brought to the knowledge and attention of the population before entering into force. legal texts related to customs matters were published in the official gazette for the general public on a non-discriminatory and transparent basis. in addition, the Customs and excise department frequently provided legislation and regulations to the 30-50 largest importers to up-date them on legal developments. He expected the new law on Customs would receive extensive publicity through seminars, publications, and other information sources such as the departmental web-page.

89. The representative of Cambodia thanked members of the Working Party for their offers of technical assistance in this area, and for their recognition that more would be required. Cambodia was requesting a transitional period to complete the phasing-out of minimum customs value and administrative values listed in Table 6, and use of the valuation hierarchy stipulated in article 21 of the draft law on Customs. Provisions in the Customs Valuation agreement relating to transparency, confidentiality, right of appeal, sureties for the release of merchandise, and the interpretative notes relevant to these issues, would be implemented by the time of Cambodia’s accession to the WTo.

90. The government of Cambodia requested that the Working Party grant a transitional period from the date of its accession of approximately five years, until 1 January 2009, for certain provisions of the WTo agreement on Customs Valuation, to allow Cambodia to obtain and utilize technical assistance to assist in the full implementation of the obligations of the agreement. during the transition, for the imported goods listed in Table 7, Cambodia will not be required to observe the provisions of article 7:2(f), allowing for the application of minimum customs values to these imports. if such a transitional period were granted, Cambodia’s deviations from the provisions of the agreement would be strictly limited to these measures, and

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that all other provisions of the agreement would be fully implemented for all imports, including those covered by the transition.

91. during this period, Cambodia would ensure that its regulations under current legislation in place and additional legislation implemented during the transition concerning customs valuation would be applied on a non-discriminatory basis to all imports. in particular, the practice of varying the method of valuation for imports of automobiles based on national origin would be eliminated from the date of accession, and Cambodia would only apply customs duties on imported goods on a non-discriminatory basis from all WTo Member countries. any changes made in its laws, regulations and practice during the transition period would not result in a lesser degree of consistency with the provisions of the agreement on Customs Valuation than existed on the date of accession. Cambodia would participate in the work of the Committee on Customs Valuation. He added that Cambodia would seek out all available technical assistance to ensure that its capacity to fully implement the agreement upon expiration of the transition period is assured.

92. in response to requests from delegations for more specificity, the representative of Cambodia presented an action Plan setting out details of the steps that still remained to be taken in order to achieve this objective and a timetable for each step (Table 7).

Table 7: action Plan for implementation of the agreement on Customs Valuation

Action Deadline

WP review of draft law on Customs Prior to accession

Creation of a WTo Va implementation project team and preparation of a departmental plan to implement the Va transition plan.

no later than december 2003

- if decision to retain PSi mechanism, new contract will be in compliance with WTo Valuation agreement rules.

no later than 1 January 2004

Parliamentary consideration and enactment of legislation for WTo-consistent valuation rules.

no later than 1 July 2004

Transaction valuation to apply to:

1. imports by large multinational and Cambodian companies having a well established compliance record with the Customs and excise department and being considered low risk importers.

2. imports by firms other than large, multinational and Cambodian companies which import goods that are identical or similar to goods imported by these large firms, based on their compliance records.

3. imports by investment companies and other importers entitled to exemption (ngos, foreign missions, etc).


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Action Deadline

Technical training and preparation of departmental valuation technical manuals

launching of Post Clearance audit program launching of automated customs processing system project.


Transaction valuation to apply to:4. imports, by selected low risk importers and sectors, of low value

goods subject to relatively low rates of duty and representing limited revenue risk.

5. imports of identical or similar goods by other importers


Transaction valuation to apply to:6. remaining imports of low value goods subject to relatively low

rates of duty.


Transaction valuation to apply to:7. all imports, including highly taxed and sensitive goods


Full implementation of the agreement on the implementation of article Vii of the gaTT 1994


93. The representative of Cambodia stated that legislation on the valuation of imports for customs and taxation purposes conforming to the requirements of the agreement on Customs Valuation would be enacted by 1 July 2004. Cambodia would progressively implement the agreement on Customs Valuation in accordance with the action plan in Table 7, and with the understanding that during this period the scope of implementation of other aspects of the agreement, as described in paragraphs 89, 90 and 91 would be applied by Cambodia. Full implementation will start from 1 January 2009. The Working Party took note of this commitment.

rules of origin

94. noting initial statements by the representative of Cambodia that Cambodia had not yet established regulations on rules of origin, but intended to introduce preferential rules of origin as required by its membership in aSean, a Member sought a commitment that upon accession Cambodia would apply its laws and regulations on rules of origin in conformity with the provisions of the WTo agreement on rules of origin. This Member also sought confirmation that Cambodia’s laws would incorporate the requirements of article 2(h) and annex ii, paragraph 3(d), i.e., that for non-preferential and preferential rules of origin, respectively, the customs authority would provide upon the request of an exporter, importer or any person with a justifiable cause an assessment of the origin of the import and outline the terms under which it would be provided, and that any request for such an assessment would be accepted even before trade in the goods concerned began.

95. The representative of Cambodia said that, for non-preferential trade, importers were required to indicate a product’s origin in the import declaration. The requirement was applied for statistical purposes only. He added that Cambodia would

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take into account the provisions of the WTo agreement on rules of origin when developing the legislation in this area. Provisions for the administration of rules of origin would be included in the new law on Customs, which he expected Cambodia to implement during 2004. The Ministry of Commerce was responsible for issuing certificates of origin.

96. The representative of Cambodia confirmed that his government intended to comply fully with the provisions of the WTo agreement on rules of origin in the application of preferential and non-preferential rules of origin and would be able to do so after enactment of the new Customs law and its implementing regulations, no later than 1 January 2005. in particular, the requirements of article 2(h) and annex ii paragraph 3(d) of the agreement, which require provision, upon request, of an assessment of the origin of the import and outline the terms under which it will be provided, would be established in Cambodia’s law on Customs from the date of its promulgation, or if necessary, by government decree, no later than 1 January 2004. The Working Party took note of this commitment.

other customs formalities

97. The representative of Cambodia confirmed that Cambodia did not require authentication of import documentation by consular officials or other institutions in the country of export. He added that the Customs and excise department was reviewing all customs clearance procedures and processes with a view to simplification and modernization, and the application of risk management techniques. Sub-decree no. 64, issued in mid-2001, contained measures to rationalise the presence of government agencies at border checkpoints. The Customs and excise department and CaMConTrol (Ministry of Commerce) were lead agencies in the clearance process, while other governmental agencies participated in joint committees with clear mandates and responsibilities at all border checkpoints. He expected automation of the customs clearance process to result in further efficiency gains, and the new law on Customs would provide the legislative basis for this initiative.

98. Concerning efforts to combat smuggling – an issue raised by several Members as competition from smuggled goods was impeding regular market access – the representative of Cambodia said that government order no. 02 issued by the Council of Ministers on 19 december 2001 had launched a major anti-smuggling initiative. The government order directed the military, the police and local authorities to co-operate with and assist the Customs and excise department in anti-smuggling operations. an inter-Ministerial Commission had been set up under the direction of the Minister of economy and Finance to plan, co-ordinate, and to monitor this initiative. at the same time, steps had been taken to strengthen the Customs and excise department and to improve its level of integrity. The anti-smuggling initiative provided generous financial rewards to customs officials participating in successful anti-smuggling operations. Cambodia was also seeking technical assistance to equip enforcement teams with appropriate tools and facilities.

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99. The representative of Cambodia confirmed that in order to address concerns about smuggling and other customs administration issues brought to its attention, his government was in the process of establishing a dispute settlement mechanism within the Cambodian Customs Service to accept and act upon complaints about customs practices from traders and governments. This mechanism was authorized in the new Customs law and would be established prior to 1 January 2005. The Working Party took note of this commitment.

Preshipment inspection

100. The representative of Cambodia said that his government had signed a contract with a preshipment inspection firm in 1995. a new contract had entered into force in october 2000. The contract, valid for two years plus a one-year extension, would be in effect until october 2003. The regime was regulated in accordance with Prakas no. 599 SHV.PrK of 31 august 2000 on “the implementation of Pre-shipment inspection Services”. The current contract emphasized the provision of training and technical assistance to the Customs and excise department to build expertise, technical skills and know-how, thereby allowing preshipment inspection to be phased out during a maximum period of three years.

101. The present preshipment inspection contract applied to consignments valued at US$4,000 or more (FoB). goods worth less than US$4,000 were valued by the Cambodian Customs and excise department (some remote customs checkpoints were authorized to make valuation decisions for imports up to US$1,200). exempt from preshipment inspection were precious stones and precious metals; objects of art; explosives and pyrotechnic products; ammunition, weapons and implements of war; live animals; current newspapers and periodicals; household and personal effects; parcel post or commercial samples; gifts from foreign governments or international organizations to foundations, charities and recognized humanitarian organizations; gifts and supplies to diplomatic and consular missions and to agencies related to any United nations organization imported for their own needs; grants in kind; goods imported for government use under government order; scrap metals; cigarettes; and temporarily admitted goods (inward processing for export).

102. The preshipment inspection firm verified the information to be used by Customs such as quantity, quality, value, tariff classification and duties and taxes payable. Valuations would be based on the principle of Fair Market Price until the entry into force of the new law on Customs. From then on, the preshipment inspection firm would provide valuation opinions based upon procedures consistent with WTo requirements. The fee for preshipment inspection amounted to 0.80 per cent of the FoB value of the inspected goods, except for bulk petroleum products (US$0.30 per metric ton). importers failing to secure preshipment inspection, and thus necessitating goods to be inspected by customs officials at the border checking point, incurred a penalty equal to 7 per cent of the CiF value of the imported goods.

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a dispute Settlement Working group had been established to resolve promptly claims or disputes arising from the implementation of preshipment inspection. He noted that while the dispute Settlement Working group had been in operation since early 2001, importers had yet to bring formal cases to it for resolution. importers tended to raise their concerns with either the Customs and excise department or the preshipment inspection company who would then bring the matter to the group. Steps would be taken to encourage importers to make formal representations to the Working group. He added that article 24 of the draft law on Customs provided for appeals against customs decisions, first to the Customs and excise department, next to a Customs Tariff Committee, and finally to the court. The Committee, which had been established specifically to resolve cases where importers were not in agreement with the findings of the preshipment inspection firm regarding the tariff classification of goods or valuations, was fully operational. Under the new law on Customs, the Customs Tariff Committee would have a mandate to hear appeals against any decision by Customs.

103. Some Members considered the 0.8 per cent ad valorem charge for preshipment inspection a violation of article Viii of the gaTT as the fee was not related to the approximate cost of the services rendered. The representative of Cambodia replied that upon expiration of the present contract, a new or modified contract on preshipment inspection would stipulate compliance with gaTT article Viii by requiring the preshipment inspection fee to be commensurate with the service rendered and not the value of the goods inspected. a full Ministerial Cabinet meeting had reconfirmed a decision to this effect on 20 december 2002.

104. in addition, a Member pointed out that the seven per cent penalty imposed on non-inspected goods would be in contravention of gaTT article Viii paragraph 3. The representative of Cambodia held the view that article Viii of the gaTT 1994 dealt only with “penalties for minor breaches of customs regulations or procedural requirements”, while failure to comply with mandatory preshipment inspection would constitute a substantial breach of the legal requirement laid down in the Prakas of the Ministry of economy and Finance on preshipment inspection of imported products. He stressed that penalties discouraged duty evasion, and were necessary to protect government revenue and the competitive position of compliant importers. notwithstanding this explanation, one Member maintained that such a penalty was disproportionate, constituted a non-tariff barrier to importation, and should be amended to be made less onerous and to meet the requirements of gaTT articles Viii and Xi.

105. The representative of Cambodia confirmed that from the date of accession his government would take full responsibility to ensure that the operations of the preshipment inspection companies, if retained by Cambodia meet the requirements of the WTo agreements, including the establishment of charges and fees consistent with article Viii of the gaTT 1994, due process and transparency requirements of

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the WTo agreements, in particular article X of the gaTT 1994, and the provisions of the agreement on the implementation of article Vii of the gaTT 1994 and the agreement on Preshipment inspection. He further confirmed that Cambodia’s pre-shipment inspection regime would be temporary and would only operate until such time as the Customs and excise department was able to carry out the functions presently performed by pre-shipment inspection service providers. The Working Party took note of these commitments.

anti-dumping, countervailing duties, safeguard regimes

106. The representative of Cambodia said that Cambodia had not yet developed any trade remedy legislation. according to Cambodia’s legislation agenda, the law on anti-dumping and countervailing measures and the law on safeguard measures were not expected to be approved until the second half of 2004. He added that Cambodia would apply safeguard, anti-dumping or countervailing measures consistent with the WTo agreements, including their procedural aspects, as a Member of the WTo.

107. appreciating these assurances, some Members requested that Cambodia would make a commitment not to apply anti-dumping, countervailing or safeguard measures without first implementing appropriate laws and notifying to the WTo legislation covering such measures consistent with WTo agreements on the implementation of article Vi of the general agreement on Tariffs and Trade 1994, on Subsidies and Countervailing Measures, and on Safeguards. These Members invited Cambodia to submit draft legislation, if available, to the Working Party for review.

108. The representative of Cambodia confirmed that Cambodia would not apply any anti-dumping, countervailing or safeguard measure until it had notified and implemented appropriate laws and regulations in conformity with the provisions of the WTo agreements on the implementation of article Vi, on Subsidies and Countervailing Measures, and on Safeguards. in the elaboration of any legislation concerning such anti-dumping, countervailing and safeguard measures Cambodia would ensure their full conformity with the relevant WTo provisions, including articles Vi and XiX of the gaTT 1994 and the agreements on the implementation of article Vi, the agreement on Subsidies and Countervailing Measures and the agreement on Safeguards. after such legislation was implemented, Cambodia would also only apply any anti-dumping duties, countervailing duties and safeguard measures in full conformity with the relevant WTo provisions. The Working Party took note of these commitments.

2. export regulation

Customs tariffs, fees and charges for services rendered, application of internal taxes to exports

109. The representative of Cambodia said that Cambodia levied export taxes on certain unprocessed raw materials and products to encourage local processing, encourage exports of finished products and to protect human health. The products

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subject to export taxes are enumerated in Table 8. responding to requests from some Members that Cambodia abolish all export duties upon accession, the representative of Cambodia said that export duties were - to his knowledge - permitted under WTo rules, subject to the disciplines of article i of the gaTT. Cambodia’s export duties were applied on an MFn basis and hence its aSean partners were not exempt from these taxes. export taxes had accounted for approximately two per cent of the customs revenue collected by the Customs and excise department in 2000.

110. a Member noted that article XXiV of the gaTT 1994 stipulated that duties between FTa partners should be eliminated for both imports and exports. Under these circumstances, Cambodia should indicate the reason for the exemption and how Cambodia intended to bring this measure into conformity with this WTo provision. The representative of Cambodia noted that the aSean Free Trade area (aFTa) had been notified to the WTo under the enabling Clause.

111. The representative of Cambodia confirmed that the registration requirements for exports were the same as for imports, and that the 15,000 riels fee applied to each import/export declaration covered the cost of printing of the customs declaration form and the time spent by customs officers in processing the declaration. Preshipment inspection of exported products was effected by CaMConTrol, a body under the Ministry of Commerce. CaMConTrol inspected all exports without exception.

export restrictions

112. Some Members noted that Cambodia maintained export restrictions on several products. Cambodia was reminded that a WTo Member could only apply export restrictions under tightly defined conditions, and it was not evident that Cambodia’s restrictions met these requirements. Specifically, the export licensing restrictions on rice and logs would appear to violate article Xi of the gaTT 1994, as these seemed to be applied for economic rather than conservation reasons. Cambodia was asked to explain the parallel restrictions applied to domestic production, and outline how it intended to replace the current measures with WTo-consistent instruments.

113. The representative of Cambodia replied that Cambodia generally did not restrict exports, except for rice; round logs, unprocessed timber and forestry products; antiques more than 100 years old; narcotic drugs and poisons; weapons, explosives and ammunition; and vehicles and machinery for military purposes (see Table 9). He added that the restrictions on rice exports had been lifted on 26 July 2001 pursuant to Prakas-announcement no. 2290 MoC/M2001 of the Ministry of Commerce. However, his government would maintain the right to reintroduce restrictive measures in the future if necessary to prevent or relieve critical shortages of foodstuffs, as provided for in article Xi:2(a) of the gaTT 1994.

114. as for the export restrictions on forestry products, his government had issued a governmental Prakas on Management Measures to eliminate the Forestry anarchy no. 01 ProK on 25 January 1999 and a Sub-decree on Forestry Concession

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Management no. 05 on 7 February 2000. Using the authority provided by the Sub-decree on Forestry Concession Management, his government had suspended all cutting of logs by forestry concession companies. The government would not authorize the resumption of cutting until these companies had submitted Sustainable Forestry Management Plans (SFMP) and environmental and Social impact assessments (eSia). These plans and assessments would be evaluated by the department of Forestry and Wildlife of the Ministry of agriculture, by the public - in particular the local communities affected by forest management - and international experts. The evaluation of the SFdPs and the eSias was presently underway. His government had granted no authorization for forestry exploitation since 1 January 2002. exportation of round and sawn logs was prohibited, and government decision no. 17 of 29 april 1997 had established a list of wood products authorized for exportation and detailed requirements, including an obligation for the exporter to obtain a special concession to exploit forest resources from the Ministry of agriculture, access to the export quota established by the government, as well as a non-automatic export licence issued by the Ministry of Commerce. The decision also identified specific border crossing points through which wood products could be legally exported. in his view, the export licensing of wood products was applied in conjunction with parallel restrictions on domestic production, aimed at preserving exhaustible natural resources as foreseen under article XX(g) of the gaTT 1994.

115. The representative of Cambodia stated that, from the date of accession, Cambodia would ensure that it applied its laws and regulations governing export measures and would act in conformity with the relevant provisions of the WTo, including articles i and Xi of the gaTT 1994 and the agreement on Subsidies and Countervailing Measures. The Working Party took note of this commitment.

export subsidies

116. The representative of Cambodia said that Cambodia had not yet identified policies or measures relating to export financing or export support. on 28 november 1997, the Ministry of Commerce had issued declaration no. 343 on the organization and functioning of its export Promotion division, pursuant to government sub-decree no. 54 on the organization and Functioning of the Ministry of Commerce of 22 September 1997. The division was expected to engage in general promotion activities such as assisting the private sector in collecting information on markets overseas, identify potential export opportunities, and participate in organizing trade fairs. as for export incentives, he noted that article 14 of the law on investment of 4 august 1994 stipulated 100 per cent import duty exemption on construction materials, means of production, equipment, intermediate goods, raw materials and spare parts used by an “export-oriented project with a minimum of 80 per cent of the production set apart for exports”. as a basic principle, all approved projects were eligible for these duty exemptions.

117. Several Members noted that incentives accorded under the law on investment

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were contingent upon export performance. article 3 of the WTo agreement on Subsidies and Countervailing Measures prohibited the use of such subsidies, and these Members accordingly asked Cambodia to indicate how it intended to eliminate prohibited export subsidies from its trade regime. in their view, any request for a transition for Cambodia should involve a detailed commitment to eliminate WTo-inconsistent practices. Cambodia was reminded that, although ldCs might be entitled to retain such subsidies, the measures could still be actionable under the agreement on Subsidies and Countervailing Measures, which would be detrimental to the predictability and transparency sought by investors and buyers.

118. The representative of Cambodia considered the import duty exemption for export-oriented projects analogous to the exemption referred to in article 1 (note 1) and paragraph (h) of annex i of the agreement on Subsidies and Countervailing Measures. He acknowledged that a duty drawback scheme would be a better way to address this issue, but Cambodia lacked the administrative resources to implement such a scheme properly at present. in any case, he considered least-developed countries exempt from the provisions of article 3.1(a) by virtue of article 27.2 of the agreement on Subsidies and Countervailing Measures.

119. Some Members considered the existing system of remission of import fees and waiver of duty for certain goods used by certain investors to be highly complex, lacking in transparency and prone to abuse, and therefore encouraged Cambodia to implement a duty drawback scheme consistent with the agreement on Subsidies and Countervailing Measures. Pending the implementation of a functioning duty drawback programme limiting rebates to the amount of tariff and tax incorporated in the exported product, the current programmes would need to be notified as subsidies as they did not appear to qualify as valid duty drawback schemes.

120. The representative of Cambodia confirmed that any subsidy programmes provided by his government after accession would be administered in conformity with the agreement on Subsidies and Countervailing Measures, including article 27, and that all necessary information on Cambodia’s export subsidies and other notifiable programmes would be notified to the Committee on Subsidies and Countervailing Measures according to article 25 of the agreement upon entry into force of Cambodia’s Protocol of accession. He also confirmed that Cambodia would either eliminate the existing system of remission of import fees and waiver of duty for certain goods used by certain investors or establish a functioning duty drawback system consistent with WTo provisions, through amendment of the law on investment, as necessary, by the end of 2013. The Working Party took note of these commitments.

3. internal policies affecting foreign trade in goods

industrial policy, including subsidies

121. The representative of Cambodia said that the main objective of Cambodia’s industrial policy was to stimulate economic development by enhancing access

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to international markets and strengthening the industrial base. efforts focused on building up light industries and developing agro-manufacturing and food processing enterprises to sustain the agricultural sector. Measures had been taken to improve infrastructure for transportation and communication, encourage private and foreign direct investment through the adoption of an appropriate legal framework and the privatization of State-owned enterprises, and to promote the development of industrial zones. Particular attention was also given to the training of industry workers. The establishment of a Petroleum Training institute and of a Training institute for Mines and geology was under consideration. The Ministry responsible for the development and implementation of Cambodia’s industrial policy was the Ministry of industry, Mines and energy. He confirmed that Cambodia did not grant any subsidies within the framework of its industrial policy.

122. The representative of Cambodia stated that any subsidy programmes would be administered in line with the agreement on Subsidies and Countervailing Measures and that any such programmes would be notified to the Committee on Subsidies and Countervailing Measures upon Cambodia’s accession to the WTo. The Working Party took note of this commitment.

Technical barriers to trade, sanitary and phytosanitary measures

(a) Standards and certification

123. The representative of Cambodia said that Cambodia’s standardization system was at an early stage of development. He informed the Working Party that Cambodia was seeking technical assistance to develop its system. a completed Checklist of TBT requirements and implementation by the Kingdom of Cambodia was provided in document WT/aCC/KHM/8. The current system was largely voluntary, but mandatory standards were applied to some products when deemed necessary to protect national security, prevent deceptive practices or to preserve human, animal, and plant life or health.

124. Some Members reminded Cambodia that the agreement on Technical Barriers to Trade (TBT agreement) did not oblige Cambodia to establish standards, technical regulations or conformity assessment procedures. However, the provisions of the agreement applied when such measures were being developed and applied (enforced). The agreement established fundamental rules and procedures regarding the development, adoption, and application of voluntary standards, technical regulations, and the procedures used to determine whether a particular product met such standards (conformity assessment). accordingly, it was imperative for governments to establish a coordinated approach to the development, adoption and application of standards, technical regulations and conformity assessment procedures to ensure that all ministries, agencies, and private bodies involved in these activities be aware of the obligations and abide by them on an ongoing basis. issues of particular interest to Members included the use of international standards, recommendations or guides

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in the elaboration of standards, technical regulations or certification in Cambodia; work to harmonize national standards with international standards; mechanisms for publication and dissemination of draft legislation and standards for public comment prior to their entry into force; the establishment of a TBT inquiry Point; the inspection process for imported versus domestically-produced goods; recognition of equivalence of technical regulations and conformity assessment procedures of other countries, and recognition of conformity assessment procedures carried out by appropriately accredited testing laboratories in the country of manufacture; and Cambodia’s participation in multilateral or bilateral standards-related agreements or mutual recognition agreements or arrangements.

125. The representative of Cambodia replied that the Standards office in the Technical department of the Ministry of industry, Mines and energy was responsible for current work related to standardization and certification. Sub-decree on industrial Standards no. 42/anK/BK of 15 May 2001 provided the basic rules and procedures for adopting new standards, technical regulations and conformity assessment procedures. He expected a Sub-decree on Metrology to be adopted during 2003. a law on industrial Standards of Cambodia was in preparation and slated for promulgation in the first half of 2004. The new law would be complemented by a Sub-decree and implementing regulations. This legislation had been provided to the Working Party for review.

126. The new law foresaw the creation of a department of industrial Standards of Cambodia (iSC) within the Ministry of industry, Mines and energy. He confirmed that the iSC had been established in 2002 through sub-decree Xii of the Council of Ministers. The iSC would serve as Cambodia’s TBT inquiry Point, responsible for identifying and providing notifications to the WTo Secretariat under the TBT agreement. The iSC would publish a regular Bulletin or gazette which would carry notices of proposed technical regulations and conformity assessment procedures. The period for public comment on draft standards would be extended to 60 days, against the 30 days (amended standards) and 45 days (new standards) specified in existing legislation. a draft law to this effect was in preparation.

127. Cambodia had been a member of the international organization for Standardization (iSo) since 1 January 1995 and had ratified the aSean Framework agreement on Mutual recognition arrangements. imported goods were subject to the same inspection process as domestically-produced goods, and Cambodia would extend any Conformity assessment agreements, in particular those foreseen under the aSean, to all Members of the WTo. Cambodia recognized certificates from third countries’ certification bodies provided that these bodies had received formal accreditation from international or regional accreditation bodies, or were signatories to a mutual recognition arrangement. in the case of pharmaceutical products, laboratory testing in Cambodia was required prior to registration to check the conformity of the samples.

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128. Completed tasks, planned activities and related assistance needed during the period 1999-2006 was detailed in Cambodia’s action Plan for the implementation of the TBT agreement, circulated in document WT/aCC/KHM/14, and subsequently revised in document WT/aCC/KHM/14/rev.1. The action Plan is summarized in Table 10. Having reviewed Cambodia’s action Plan, some Members questioned Cambodia’s need for a two-year period to readjust technical regulations, standards, etc. as good regulatory practice, outlined in article 2.3 of the agreement on Technical Barriers to Trade, required the appropriateness and effectiveness of particular standards and technical regulations to be reviewed on an ongoing basis. Cambodia should take immediate steps to fulfil the transparency requirements of the agreement. Cambodia was encouraged to notify WTo Members of proposed regulations prior to adoption, and carefully consider Members’ technical comments on proposed regulations before finalizing them. noting Cambodia’s requests for technical assistance, some Members stressed that Cambodia should not make implementation of the TBT agreement contingent on the provision of future technical assistance.

129. The government of Cambodia requested that the Working Party grant a transitional period from the date of its accession until 1 January 2007 for implementation of the WTo agreement on Technical Barriers to Trade, to allow Cambodia to obtain and utilize technical assistance to fully implement the obligations of the agreement. during this period, existing measures would be applied on a non-discriminatory basis, i.e. providing for national treatment and MFn treatment to all imports. Measures in place already consistent with the provisions of the agreement on Technical Barriers to Trade would not be subject to transitions, and Cambodia would ensure that any changes made in its laws, regulations and practice during the transition period would not result in a lesser degree of consistency with the provisions of the agreement than existed on the date of accession. Standards, technical regulations, and conformity assessment procedures adopted during this period would be developed in conformity with the provisions of the agreement. Cambodia would fully participate in the work of the Committee on Technical Barriers to Trade. He added that Cambodia would seek out all available technical assistance to ensure that its capacity to fully implement the agreement upon expiration of the transition period is assured.

130. in response to requests from delegations for more specificity, the representative of Cambodia presented an action Plan setting out details of the steps that still remained to be taken in order to achieve this objective and a timetable for each step (Table 10).

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Table 10: action plan for implementation of the agreement on Technical Barriers to Trade

action deadlineadoption of Sub-decree on industrial Standards no. 42/anK/BK

adoption of Sub-decree on Metrology

implementation of revised notice on registration of industrial Products

1999-2002

identification of the department of industrial Standards of Cambodia (iSC) as the authority responsible for notifications and publications required by the TBT agreement.

establishment of the TBT enquiry Point in iSC:

department of industrial Standards of Cambodia (iSC) Ministry of industry, Mines and energy #45, norodom Blvd. Phnom Penh, Cambodia. Fax: 855-23-216086 e-mail: [email protected]

establishment of TBT/Standards library in iSC

installation, testing, and calibration of equipment in iSC laboratories

Capacity building for key standards personnel in the field of standardization, management, methods and procedures for sampling and inspection, auditing, inspection and surveillance, and for auditors, assessors, inspectors, and staff responsible for testing and calibration and for issuing certificates and licenses.

2003

WP review of legislation Prior to accessionSubmission of Statement on implementation to WTo (per g/TBT/1) Upon accessionenactment of law on industrial Standards and adoption of the Sub-decree and regulations for its implementation

Compliance with the Code of good Practice

development Technical regulations and Conformity assessment Procedures for implementation of TBT agreement (per list in WT/aCC/KHM/14/rev.1)


Publication of a periodic Standards Bulletin or gazette by the iSC covering activities relating to technical regulations, standards and conformity assessment procedures.


Training of standards staff on international trade and TBT implementation

review and adjustment of technical regulations and procedures in accordance with new scientific discoveries and approaches.

2005-2006

Full implementation of the WTo agreement on Technical Barriers to Trade


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131. The representative of Cambodia stated that Cambodia would progressively implement the agreement on Technical Barriers to Trade in accordance with the action plan in Table 10 and with the understanding that during this period the scope of implementation of other aspects of the agreement, as described in paragraph 129 would be applied by Cambodia. Full implementation will start from 1 January 2007 without recourse to any further transitional period. The Working Party took note of this commitment.

(b) Sanitary and phytosanitary measures

132. at the outset, the representative of Cambodia said that Cambodia’s sanitary and phytosanitary measures were applied and regulated on the basis of the law on the Management of Quality and Safety of Products and Services of 21 June 2000, the Sub-decree on Sanitary inspection of animal and animal Products of 29 July 1988, the Sub-decree on Plant Quarantine of 8 october 1983, and the Sub-decree on Standards and Management of agricultural Materials of 28 october 1998. Further work to ensure compliance with the agreement on the application of Sanitary and Phytosanitary Measures (SPS agreement) involved revision of the 1983 and 1988 sub-decrees as well as the preparation of new sub-decrees and regulations related interalia to food hygiene, labelling and safety requirements, detailed in the completed SPS Checklist circulated in document WT/aCC/KHM/9 and the action Plan for the implementation of the SPS agreement, circulated in document WT/aCC/KHM/15, and subsequently revised in document WT/aCC/KHM/15/rev.1.

133. among the actions taken during 2001 and 2002, he noted that Cambodia had established a national Codex Committee and technical working groups, which were meeting on a regular basis, and Codex Units had been set up in each Ministry concerned to provide effective inputs and proactive participation in Codex work; the chemical and microbiological food analysis laboratory at CaMConTrol had been strengthened; a Plant and animal Quarantine Station had been established and programmes had been designed in the areas of plant pest and animal disease surveillance and control and pest and disease control; officials had received training in risk analysis; and Cambodia had implemented specific training programmes in the areas of plant quarantine, animal quarantine, laboratory diagnostic and product testing, and plant and animal quarantine. a first draft of a Sub-decree on Food Hygiene, including storage requirements and microbiological requirements had also been completed.

134. He added that the national Codex Committee at the Ministry of Commerce would serve as Cambodia’s SPS enquiry Point. assuming that technical assistance would be provided, he expected the enquiry point to become operational in 2003. The basic transparency provisions of the SPS agreement had been incorporated in a sub-decree on Plant Quarantine and animal Quarantine, stipulating publication of proposed measures at an early stage and a procedure to provide information to WTo Members, thus allowing a reasonable period of time for comment by WTo

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Members and the public, and a process for taking account of the comments received without discrimination. The Sub-decree on Plant Quarantine, and the Sub-decree on Sanitary inspections of animal and animal Products had been adopted by the Council of Ministers on 14 February 2003. The framework for adopting the standards, guidelines and recommendations developed by the relevant international organizations (the Codex alimentarius Commission, the international office of epizootics and international or regional organizations operating within the framework of the international Plant Protection Convention) would be incorporated in the law on industrial Standards of Cambodia, planned for promulgation in the first half of 2003. other legislation in preparation during 2003 included draft sub-decrees on Food Safety Standards on additives (sweeteners, colours, flavours, preservatives and antioxidants); Food inspection administration; Food Safety Standards on environmental Contaminants; Food Safety Standards on agricultural Chemicals (pesticide residues); draft regulations on safety requirements for fresh fruit and processed fruit; draft regulations on safety requirements for cereals pulses and legumes; draft guidelines on assurance of seafood quality; and draft registration procedures and implementation of registration for cosmetic products.

135. noting a temporary ban on the importation of meat, meat products and associated dairy products from certain eU countries, a Member was concerned that customs officials in Cambodia appeared to interpret the ban to include other countries, and asked how Cambodia intended to ensure non-discriminatory application of its SPS regime.

136. The representative of Cambodia replied that a temporary ban had been introduced to prevent the spread of diseases potentially harmful to human and animal health. The ban had been introduced in the light of information received from the Codex alimentarius on the potential risk of BSe in meat, meat products and dairy products originating in certain eU countries. The ban had been initiated in March 2001 under government Prakas no. 089. The ban had subsequently been terminated in September 2001.

137. The representative of Cambodia said that achieving full compliance with the requirements of the SPS agreement was a complex process, and Cambodia was accordingly seeking a transition period during which the requirements would be implemented gradually in accordance with the action Plan summarized in Table 11. He stressed that Cambodia’s pace in implementing the SPS agreement would depend on the assistance made available by WTo Members and relevant international organizations for Cambodia to develop new regulations in conformity with WTo provisions and ensure their effective implementation, in particular through training.

138. Some Members stated that they considered implementation of the SPS agreement a key element of Cambodia’s accession. Having reviewed Cambodia’s action Plan, these Members were reluctant to grant a five-year transition period without specific guidelines on implementation or sufficient detail to justify these transitional

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arrangements. it was noted that Cambodia should give priority to the establishment of an enquiry point, any SPS measures taken by Cambodia should be notified to the WTo, and Cambodia should be prepared to consult with WTo Members upon request if measures taken would affect their exports negatively. The need for a two-year period for “readjusting technical regulations, standards, etc.” was questioned. Cambodia was encouraged to consider adoption of international standards where such standards would meet Cambodia’s needs and, where international standards would not be deemed appropriate, Cambodia should consider drawing upon WTo-consistent standard setting work of other governments.

139. in reply, the representative of Cambodia referred to the revised action Plan for the implementation of the SPS agreement, found in document WT/aCC/KHM/15/rev.1, which in his view contained very specific guidelines and details regarding implementation. in his view, full implementation of the SPS agreement could be achieved by 2007/2008. Cambodia would draw upon international standards and the work of other governments as appropriate. in this connection, he noted that the national assembly and Senate had ratified Protocol 8 on Sanitary and Phytosanitary Measures of the aSean Framework agreement on the facilitation of goods in transit.

140. Members suggested that, based on the information provided on Cambodia’s progress to date and plans for further progress found in document WT/aCC/KHM/15/rev.1, Cambodia should be able to complete formal implementation of legal authority, procedures, and the basic infrastructure for applying SPS measures to imports in a WTo-consistent fashion prior to 1 January 2004 and be prepared to apply fully the provisions of the agreement by 1 January 2006, and sought Cambodia’s commitment to a timetable of implementation on that basis.

141. The representative of Cambodia requested that the Working Party grant a transitional period from the date of its accession until 1 January 2008 for implementation of the WTo agreement on Sanitary and Phytosanitary Measures, to allow Cambodia to obtain and utilize technical assistance to fully implement the obligations of the agreement. during this period, existing measures would be applied on a non-discriminatory basis, i.e., providing for national treatment and MFn treatment to all imports. Measures in place already consistent with the provisions of the agreement on Sanitary and Phytosanitary Measures would not be subject to transitions, and Cambodia would ensure that any changes made in its laws, regulations and practice during the transition period would not result in a lesser degree of consistency with the provisions of the agreement than existed on the date of accession. Technical regulations and other measures adopted during this period would be developed in conformity with the provisions of the agreement. Priority would be given to the establishment of a functioning enquiry point and the notification of all of Cambodia’s SPS measures to the Committee. He added that Cambodia would seek out all available technical assistance to ensure that its capacity to fully implement the SPS agreement

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upon expiration of the transition period is assured. Cambodia would fully participate in the work of the Committee on Sanitary and Phytosanitary Measures. in response to requests from delegations for more specificity, the representative of Cambodia presented an action Plan setting out details of the steps that still remained to be taken in order to achieve this objective and a timetable for each step (Table 11).

Table 11: action Plan for implementation of the agreement on the application of Sanitary and Phytosanitary Measures

action deadline

enactment of basic legal and operational framework for implementation of articles 2-8 of the SPS agreement:

- Sub-decree on Sanitary inspection of animal and animal Products of 29 July 1988 (no.14ar.nor.Krar), as revised on 14 February 2003

- Sub-decree on Plant Quarantine of 8 october 1983 (no.98ar nor Kro), as revised on 14 February 2003

- Sub-decree on Standards and Management of agricultural Materials of 28 october 1998 (no.69 ar nor Kra/BarKar)

- law on the Management of Quality and Safety of Products and Services of 21 June 2000.

- Sub-decree no. 5 dated 3 February 1998 on the establishment of the inter-ministerial Committee for coordinating the control of quality and safety of products and services.

- law on the Management of Quality and Safety of Products and Services (promulgated by reach Kram no. nS/rKM/0600/001 dated 21 June 2000).

- Sub-decree no. 28 dated 9 March 2001 on the establishment of the national Codex Committee (nCC) and its Secretariat.

- Prakas no. 357/MoC dated 31 december 2001 on the establishment of the Technical Working groups (TWg) for the national Codex Committee.

Completed

enactment of further legal provisions for implementation of the SPS agreement: program, e.g., drafting a sub-decree on Food Hygiene, including storage requirement and microbiological requirements, per WT/aCC/KHM/15/rev.1.

establishment of the SPS enquiry Point, training of personnel, and procurement of necessary equipment (decision of the Council of Ministers – notification letter no. 1093 dated 26 July 2002):

national Codex Committee Cambodia import-export and Fraud repression department (CaMConTrol) Ministry of Commerce (acting as Secretariat) Fax: (855) 23-426 166 email: [email protected]

2003

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action deadlineestablishment of Codex library

implementing specific technical training programs in SPS, per WT/aCC/SPeC/KHM/15/rev.1

drafting of additional regulations and sub-decrees to implement the SPS agreement and provide for necessary application of sanitary and phytosanitary measures, per WT/aCC/SPeC/KHM/15/rev.1 Proficiency testing for food: microbiological and hygiene, and food chemical analysis toward Mra’S in the region.

Capacity building for key Camcontrol, MaFF and MoH personnel on the implementation of the above regulations.

2003

WP review of legislation Prior to accession

drafting additional regulations on food safety and guidelines for food products certification (for exports), per WT/aCC/SPeC/KHM/15/rev.1.

Capacity building for key Camcontrol, nCC, and TWgs personnel on the implementation of the above regulations.

Updating the Codex library.

2004-2005

readjustment of technical regulations, standards and procedures in accordance with new scientific discoveries and approaches.

Working toward accreditation of inspection bodies and testing laboratories.Capacity building for key Camcontrol, nCC, and TWgs personnel on the implementation of the above regulations.

Updating the Codex library.

2006-2007

Full implementation of the WTo agreement on the application of Sanitary and Phytosanitary Measures

not later than1 January 2008

142. The representative of Cambodia confirmed that Cambodia would implement progressively the provisions of the WTo agreement on the application of Sanitary and Phytosanitary Measures within the timetable provided for in the action Plan for implementation in Table 11, and would ensure full implementation of the agreement no later than 1 January 2008, and with the understanding that during this period the scope of implementation of other aspects of the agreement, as described in paragraph 141 would be applied by Cambodia. He further confirmed that Cambodia should consult with WTo Members upon request if they deemed that any measures applied during the transition period affected their trade negatively. The Working Party took note of these commitments.

Trade-related investment Measures (TriMs)

143. The representative of Cambodia said that Chapter V of the law on investment of 4 august 1994 and Chapter 7 of government Sub-decree no. 88 anKr.BK on the implementation of the law on investment of 29 december 1997 contained certain

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trade-related provisions, including incentives for export-oriented investments that include the exemption, in whole or in part, of duties and taxes; corporate profit tax exemptions and preferences, depending on the characteristics of the project and its priority status with the government of Cambodia; and tax exemption on dividend or profit distribution whether transferred abroad or distributed in Cambodia (articles 12, 13, and 14:1-3 of the law on investment). Such investments could also be exempted from the export tax and enjoy special rules for entry of foreign nationals. in particular, article 14:4(a) and (b) exempted 100 per cent of import duties on construction materials, means of production equipment, intermediate goods, raw materials and spare parts used in export-oriented investment projects with a minimum of 80 per cent of the production exported, or located in a designated Special Promotion zone (SPz) listed in a development priority list issued by the Council for the development of Cambodia. article 14:4(c), (d), and (e) provided that such incentives could be authorized for investments involving the tourism industry, labour-intensive industry, transformation industry, agro-industry or physical infrastructure and energy industry for the construction period of enterprises, factories, building and the first year of operation of business production. These measures were, in his view, incentives consistent with the agreement on Trade-related investment Measures, and would be maintained as long as they were permitted by WTo provisions and Cambodia’s Protocol of accession and would meet Cambodia’s development needs. However, the newly amended law on investment, in its article 14 concerning incentives, does not make any reference to the “minimum 80 per cent of the production for export”. Moreover, the implementing sub-decree which will be drafted will be made to ensure full compliance with the WTo provisions on TriMs.

144. The representative of Cambodia said that Cambodia would not maintain any measures inconsistent with the TriMs agreement and would apply the TriMs agreement from the date of accession without recourse to any transitional period. The Working Party took note of this commitment.

State trading entities

145. The representative of Cambodia said that eleven State-owned companies engaged in importation and exportation of products such as rice, rubber, fertilizer, fishery products, pharmaceutical products and agricultural equipment. The enterprises operated in full accordance with commercial considerations and private business practices, and no special privileges were granted to them. He was thus of the view that none of Cambodia’s State-owned enterprises came within the scope of article XVii of the gaTT 1994, the Understanding on the interpretation of article XVii of the general agreement on Tariffs and Trade 1994, or the informal illustrative list of State-trading enterprises contained in document g/STr/4.

146. asked to provide more precise information about the trade activities of these enterprises and their relations with the government, the representative of Cambodia

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said that the green Trade Company (gTC), established by sub-decree no. 72 of 23 november 1998, managed Cambodia’s national reserve of rice through purchases and sales made at market prices. although the green Trade Company was free to trade in foodstuff and other commodities of its own choice, in practice the gTC has so far only engaged in the rice trade. other than the initial capitalization of 30 billion riels, subscribed by the government of Cambodia in 1998, the gTC had received no funding or financial contributions from public funds. each year the gTC remitted one per cent of its total turnover or 20 per cent of its gross profits, whichever was higher, to the government as return on the equity. The company’s needs for operational liquidity or working capital would be financed by the regular banking system at market rates. if requested, and subject to approval by the Minister of economy and Finance, his government could issue guarantees for such loans. The gTC was subject to technical supervision by the Ministry of Commerce, and financial supervision by the Ministry of economy and Finance. Prior to 26 July 2001, when export licences for rice had been lifted, the green Trade Company had upon request provided market information and advice to the Ministry of Commerce for the issuance of export licences. Since then, the green Trade Company had had no further role to play in Cambodia’s rice exports as the company engaged solely in distribution and domestic trade in rice.

147. established through anukret no. 12 of 18 February 1999, the agricultural inputs Company was managed by a board of five directors from the Ministry of agriculture, Forestry, and Fisheries, Ministry of economy and Finance, and Ministry of Commerce. The company engaged in importation, purchase and sale of agricultural products (fertilizer, pesticides, seeds and agricultural equipment), warehousing and managing the distribution of donated fertilizers and agricultural inputs, administered statistical data, and participated in training programmes and research. He stressed that the agricultural inputs Company operated on a strictly commercial basis, in competition with the private sector. imports of agricultural inputs by the agricultural inputs Company had been effected though private enterprises. in 2002, the company had called for bids from private-sector importers to supply 15,000 tonnes of fertilizer for delivery in 2003, but no purchases had been made. He added that his government intended to establish a committee that would draft a plan for full divestment of State-ownership in the agricultural inputs Company by 2006 (Circular by the Council of Ministers no. 2018 of 26 december 2002).

148. Concerning State-ownership in the rubber sector, the representative of Cambodia said that seven rubber plantations (Chup, Krek, Memot, Snoul, Chamcar andoung, Boeng Ket and Peam Chaing) were being transformed into public enterprises under the Ministry of agriculture, Forestry and Fisheries pursuant to the law on Public enterprises through sub-decrees approved on 15 March 1999. although the estates remained State-owned, the sub-decrees conferred full autonomy to the Boards of directors of the estates (which delegated the conduct of day-to-day operations to a director general), financial transactions and management issues, and the enterprises

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received no privileges from the government. an audit exercise was currently being conducted for each estate to determine whether it should be closed, sold to the private sector, or turned into a joint-venture with majority private ownership. His government intended to complete the wind-up of State-ownership in the estates by 2006 (Circular by the Council of Ministers no. 2018 of 26 december 2002). enterprises in State-ownership as per March 2003 are listed in Table 1(b).

149. The representative of Cambodia confirmed that, if Cambodia were to authorize the operation of any state trading enterprises, it would ensure that all relevant laws and regulations were in conformity with the requirements of article XVii of the gaTT 1994, the Understanding on interpretation of article XVii of the gaTT 1994, and article Viii of the gaTS, including those provisions requiring the application of “commercial considerations” in the sale and purchase of state traded commodities and notification requirements. He further confirmed that the operations of the enterprises to be retained as State-owned, including the green Trade Company, were consistent with the provisions of gaTT article XVii, and that no new privileges in terms of article XVii would be granted to the these or other entities. Cambodia would apply its laws and regulations governing the trading activities of state-owned enterprises in full conformity with the provisions of the WTo agreement. The Working Party took note of these commitments.

Free zones, special economic areas

150. The representative of Cambodia said that there were currently no free zones in Cambodia. His government had been considering the establishment of industrial zones, including export processing zones. government Sub-decree no. 73 of 5 october 1995 and Sub-decree no. 2 of 5 January 1996 foresaw the creation of an industrial zone in Stung Hav-Sihanouk Ville, but the project remained to be implemented. Poipet, Koh Kong, Pailin (on the border with Thailand) and some other areas along the border with Viet nam had been evaluated as potential sites for further export processing zones. as a result of this evaluation, a decision to establish an industrial zone in Koh Kong had been issued by governmental sub-decree no. 10 of 5 February 2002. in addition, the law on investment and government sub-decree no. 88 anKr.BK had foreseen establishment of Special Promotion zones, as described in paragraph 143 above. a draft law on industrial zones had been approved by the Council of Ministers in March 2003 and was currently under consideration by Parliament. Pending the passage of this law, other zones could possibly be established by sub-decree. He confirmed that the draft law contained no export performance measures or local content requirements.

151. The representative of Cambodia said that the free zones or special economic areas, including special promotion zones established in accordance with the law on investment which it established would be fully subject to the coverage of WTo agreements and its commitments in its Protocol of accession to the WTo agreement

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and that Cambodia would ensure enforcement of its WTo obligations in those zones or areas. in addition, in accordance with the (draft) law on industrial zones, from the date of accession goods produced in any such zones or areas under tax and tariff provisions that exempt imports and imported inputs from tariffs and certain taxes would be subject to normal customs formalities when entering the rest of Cambodia, including the application of tariffs and taxes. The Working Party took note of these commitments.

government procurement

152. The representative of Cambodia said that a new public procurement system had been in operation since 30 July 1995 (sub-decree no. 60). Procurement was carried out through either (i) international competitive bidding (iCB); (ii) domestic competitive bidding (dCB); (iii) international shopping (iS); (iv) domestic canvassing (dC); or (v) direct purchase or direct contracting (dcon). iCB and dCB contracts were advertised publicly and open to all interested bidders. The dCB procedure was applied to projects below 200 million riels for civil work and 100 million riels for goods. The procedure used for procurement above these thresholds was the iCB, whose regulations complied with international standards. The last three methods did not require open public competition, but participation of foreign bidders was not prohibited.

153. The lowest-priced bid was generally chosen under the iCB and dCB procedures, but other factors such as the completeness of the bid, delivery periods, conformity with technical specifications, the bidder’s experience and financial standing, and required supporting documents might also be considered. international shopping (iS) involved obtaining a minimum of three quotations from at least two different countries. He added that practices could deviate from established procurement procedures, and domestic preference could be granted in cases of emergency purchases, proprietary procurement, small-value items, and acquisition of military equipment and supplies.

154. Some Members noted that Cambodia’s procurement policies were relatively open and that Cambodia would benefit from membership in the agreement on government Procurement. a Member invited Cambodia to ensure transparency in its government procurement practices and policies and to consider the work being done in the WTo Working group on Transparency in government Procurement.

155. The representative of Cambodia replied that Cambodia did not intend to join the plurilateral agreement on government Procurement for the time-being. He nevertheless took note of Members’ comments.

Trade in Civil aircraft

156. The representative of Cambodia said that the current rate of duty on civil aircraft and aircraft parts ranged from zero to 15 per cent. Cambodia did not accord

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tariff exemptions on equipment, parts or technical supplies required for airports in connection with air services.

Transit

157. The representative of Cambodia said that Cambodia had no specific regulation related to trade in transit. Cambodia had signed bilateral agreements on transit trade with the Socialist republic of Viet nam on 3 april 1994 and with People’s democratic republic of lao on 12 May 1994. according to the agreement with Viet nam, the parties allowed the transit of goods across each other’s territory, except for prohibited imports and exports such as narcotics, toxic chemicals, radioactive items, pornographic and other materials contrary to public morals, as well as rare, wild and precious animals and plants.

158. The representative of Cambodia confirmed that his government would apply any laws, regulations and practices governing transit operations and would act in full conformity with the provisions of the WTo agreement, in particular article V of the gaTT 1994. The Working Party took note of this commitment.

agricultural policies

(a) imports – description of the types of border protection maintained

159. The representative of Cambodia said that Cambodia imposed no licensing requirements nor quantitative restrictions or prohibitions on imported agricultural products. The trade-weighted average tariff on agricultural products was approximately 17 per cent. Sanitary and phytosanitary certificates were required for the importation of agricultural products.

(b) exports

160. The representative of Cambodia said that Cambodia did not impose prohibitions or restrictions on exported agricultural products, except for narcotic drugs. a ten per cent tax was levied on exports of pure bred cattle and swine, as noted in Table 8. export restrictions on rice had been lifted in July 2001, but Cambodia would reserve its right to restrict exports of rice temporarily to prevent or relieve critical shortages of foodstuffs as foreseen under article Xi:2(a) of the gaTT 1994. He confirmed that Cambodia operated no export credit, export credit guarantee or insurance programmes for agricultural products.

(c) internal policies – i.e. description of, and the budgetary expenditure and any revenue foregone involved in each of the domestic support measures in place

161. The representative of Cambodia said that the majority of Cambodia’s population lived in rural areas and their livelihood depended on agriculture, particularly the cultivation of rice. government policies aimed at improving food output and food security. The Ministry of agriculture managed a rice Seed Bank, which provided rice seed to farmers affected by natural disasters. local offices of the Ministry of

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Water resources and Meteorology also distributed diesel fuel free of charge to be used by farmers in the operation of irrigation water pumps in emergency drought situations.

162. He provided information on domestic support and export subsidies in agriculture for the period 1998-2000 in document WT/aCC/SPeC/KHM/3 of 11 december 2001 and its revision 1 of 29 July 2002 and addendum 1 to that document (background note). in addition to “green box measures”, which included the programmes mentioned above as well as farmers’ exemptions from agricultural land tax and income tax (classified as decoupled income support), the representative of Cambodia noted in Supporting Table dS:9 that VaT exemptions on agricultural inputs were generally available to farmers, although estimates of the revenue foregone by the government were not available due to lack of statistical data. Farmers’ exemption from land and income taxes, and turnover tax or VaT on own produce at the first point of sale, was an important element of Cambodia’s strategy towards poverty alleviation and rural development. Plantation-type agricultural entities were subjected to VaT.

163. responding to a specific question on Cambodia’s rice reserve Policy, the representative of Cambodia added that the objective of the rice reserve was to provide emergency food aid to victims of natural disasters. during 1998-2000, 1 billion riels of government funds had been earmarked each year for purchases from the rice reserve, and the allocation had increased to 1.64 billion riels in 2001 and 3.28 billion riels in 2002. Purchases to the rice reserve (and sales) were effected by the green Trade Company and had the effect of moderating movements in the domestic price of rice. When emergencies triggered the release of rice reserves, the national Committee for disaster Management (nCdM) would purchase the rice from the green Trade Company at cost plus a small mark-up. The nCdM in turn provided the rice to victims of natural disasters free of charge.

164. The representative of Cambodia agreed that, upon Cambodia’s accession, his country would bind its agricultural export subsidies at zero in its Schedule of Concessions and Commitments on goods, and not maintain or apply any export subsidies for agricultural products. The Working Party took note of these commitments.

Textiles regime

165. The representative of Cambodia said that textiles and clothing were not subject to any special regime in his country. although import duties on such products were relatively high in Cambodia – on average 34 per cent for garments and 14 per cent on yarn and fabrics – most Cambodian garments manufacturers were registered investment firms producing for export, and thus exempt from paying duty on imported raw materials and intermediate goods. Cambodia had concluded an agreement relating to Trade in Cotton, Wool, Man-made Fibre, non-Cotton Vegetable Fibre and Silk Blend Textile, and Textile Products with the United States. The representative

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of Cambodia confirmed that Cambodia would extend the same preferential tariff rates accorded to U.S.-origin textile and apparel products under the agreement to all WTo Members on an MFn basis upon accession. Under the terms of the bilateral agreement, the United States had placed quantitative restrictions on 13 categories of apparel from Cambodia. exports of certain textile products to Canada were also restrained under a bilateral agreement. an eU-Cambodia textile agreement allowed quota-free access to the eU market, but set up double-checking (surveillance) on nine categories as well as administrative cooperation, with the view to verify and ascertain Cambodian origin of the goods.

166. The representative of Cambodia confirmed that the quantitative restrictions on imports maintained by WTo Members on textiles and clothing products originating in Cambodia that were in force on the date prior to the date of accession of Cambodia to the WTo should be notified to the Textiles Monitoring Body (TMB) by the Members maintaining such restrictions and would be applied for the purposes of article 2 of the agreement on Textiles and Clothing. Thus, for the purposes of Cambodia’s accession to the WTo, the phrase “in force on the day before the entry into force of the WTo agreement” contained in article 2.1 of the agreement on Textiles and Clothing shall be deemed to refer to the day prior to the date of accession of Cambodia to the WTo. To these base levels the increase in growth rates provided for in article 2.13 and 2.14 of the agreement on Textiles and Clothing shall be applied, as appropriate, in the agreement on Textiles and Clothing from the date of Cambodia’s accession, such base levels and growth rates coming to an end upon the termination of the agreement on Textiles and Clothing. The Working Party took note of these commitments.

Trade-related intellectual Property rights (TriPS)

1. general

(a) industrial property protection

167. The representative of Cambodia said that his government considered the protection of intellectual property rights essential for the fostering of economic development, to stimulate foreign investment and the transfer of technology, and to facilitate Cambodia’s integration into the world economy. at the outset Cambodia’s protection of intellectual property rights had been based on articles 47 and 48 of the Provisions relating to the Judiciary and Criminal law and Procedure applicable in Cambodia during the Transitional Period, issued on 10 September 1992, and declaration no. 368 of the Ministry of Commerce on Procedures of the intellectual Property department of 15 december 1997.

168. He added that his government had been drafting new legislation with the help of foreign experts and WiPo to bring Cambodia’s legislation into line with the TriPS agreement, including a law on Marks, Trade name, and acts of Unfair Competition, promulgated on 7 February 2002; a law on Patents, Utility Models and industrial designs promulgated on 22 January 2003; and a law on Copyright and related

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rights promulgated on 5 March 2003. Further laws on geographical indications, layout design of integrated Circuits, Protection of Undisclosed information and Trade Secret, and Plant Variety Protection were in preparation and expected to be promulgated in 2004. Cambodia was also working on a new Civil Code, scheduled for adoption in 2004, which would backstop the protection of intellectual property. He confirmed that the new Civil Code would not duplicate provisions of specific intellectual property laws.

169. The representative of Cambodia provided detailed information on the implementation of the TriPS agreement in document WT/aCC/KHM/7 and its revisions 1 and 2. He also submitted an action Plan in document WT/aCC/KHM/16, and a revised action Plan in document WT/aCC/KHM/16/rev.1, and described the efforts of his government to secure technical assistance in connection with the action Plan.

(b) responsible agencies for policy formulation and implementation

170. The representative of Cambodia said that the department of intellectual Property of the Ministry of Commerce was responsible for the formulation and implementation of policy regarding marks, trade name, and acts of unfair competition. The Ministry of industry, Mines, and energy was in charge of patents, utility models and industrial designs, the Ministry of Culture and Fine arts of copyrights and related rights, and the Ministry of information recognized the collective management organizations of broadcasting rights.

171. asked whether Cambodia intended to rationalize its administrative arrangements by establishing a single agency in charge of the administration of rights subject to grant and registration such as patents, trademarks and industrial designs, the representative of Cambodia replied that Cambodia had established a Committee to govern the Three areas of intellectual Property rights (i.e. trademarks, patents and copyright). The Minister of Commerce chaired the Committee, which had a mandate to coordinate the technical and administrative procedures of the various agencies with iPr responsibilities. The Committee also coordinated technical assistance in these areas. He saw this Committee as a possible first step in the direction of establishing a single agency in charge of administration of rights subject to grant and registration.

(c) Participation in international intellectual property agreements

172. The representative of Cambodia said that Cambodia had been a member of the World intellectual Property organisation (WiPo) since 1995 and the Paris Convention for the Protection of industrial Property rights since 1998. Cambodia planned to adhere to the WiPo Copyright Treaty (WCT) and the WiPo Performances and Phonograms Treaty (WPPT) in 2005, and to join the Berne Convention after adoption of the law on Copyright and related rights, and the Patent Cooperation Treaty upon enactment of the law on Patents, Utility Models and industrial designs.

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His government was also considering membership in the international Convention for the Protection of new Varieties of Plants (UPoV), and a new law was being drafted to this end with the assistance of UPoV. ratification of the geneva Phonogram Convention and the Brussels Satellite Convention would also depend upon the enactment of the law on Copyright and related rights and other relevant legislation currently in preparation.

173. Cambodia had been participating in the aSean Framework agreement on intellectual Property Cooperation since 30 april 1999. Cambodia had also concluded bilateral agreements on intellectual property protection and cooperation with the United States and the Kingdom of Thailand.

(d) application of national and MFn treatment to foreign nationals

174. The representative of Cambodia said that national and MFn treatment was granted to all foreign nationals under existing intellectual property legislation, and all draft legislation continued to integrate the same principles.

(e) Fees and taxes

175. The representative of Cambodia said that trademarks processing fees amounted to US$50 per certificate for registration, US$50 per class for publication, and US$5 per class for services. These fees were subject to revision by the Ministry of Commerce, having consulted with the Ministry of economy and Finance (though a joint Prakas of the Ministry of Commerce and the Ministry of economy and Finance). Fees concerning patents and copyright remained to be determined.

2. Substantive standards of protection, including procedures for the acquisition and maintenance of intellectual property rights

(a) Copyright protection

176. The representative of Cambodia said that a new law on Copyright and related rights had been adopted by the Council of Ministers in March 2002, and ratified by the national assembly and the Senate on 21 January 2003. The law on Copyright and related rights had been promulgated on 5 March 2003. in the interim, copyright protection had been regulated by article 48 of the 10 September 1992 Provisions relating to the Judiciary and Criminal law and Procedures applicable in Cambodia during the Transitional Period.

177. The law provided copyright protection for literary works; artistic and scientific documents; official legislative, judicial and administrative texts; spoken works (conferences, speeches, sermons, etc.); dramatic and dramatic-musical works; choreographic works and pantomimes; musical compositions with or without words; audiovisual works with or without sound and photographs extracted from these works; drawing, painting, architectural, sculptural, engraving and lithography works; graphic and typographic works; photographic works and works produced with

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techniques similar to photography; work of applied arts; illustrations, cards, plans, sketches and plastic works pertaining to geography, topography, architecture and sciences; computer programmes; and derived works, such as translation, adaptation, transformation of one or several pre-existing works.

178. Protection was provided for the lifetime of the author and 50 years after his/her death. The rights subsisted for 50 years, starting on 1 January of the calendar year following the date of fixation, first disclosure of the performance, or first broadcast. as to pre-existing works that had not yet fallen into the public domain, the spirit of the law on Copyright and related rights complied throughout with articles 1 through 21 of the Berne Convention, including article 18. Chapter 5 (articles 30 and 31) and Chapter 6 (article 67) of the law on Marks, Trade names and acts of Unfair Competition also covered the protected duration and adherence to international treaties. in response to a specific question, the representative of Cambodia added that the law included enforcement provisions providing for destruction of infringing goods (articles 58-66).

179. He also added that the law on Copyright and related rights provided for the protection of compilations of data (articles 7 and 21), computer programs as literary works, rental rights for computer programmes, and the exclusive rights of a broadcaster to authorize rebroadcasts by wireless means (articles 47 and 48).

(b) Trademarks, including service marks

180. The representative of Cambodia said that the new law on Marks, Trade name and acts of Unfair Competition had been promulgated on 7 February 2002. a sub-decree and implementing regulations to the Trademarks law was expected to be adopted during 2003. Under the law, applications for registration of a mark were to be submitted to the intellectual Property division at the Ministry of Commerce. actual use of a mark was not a condition for filing an application. Priority was given to the person who first validly filed the mark or claimed the earliest priority to the mark. Priority rights to a mark already filed in another member of the Paris Convention or the WTo could be conferred, on the basis of the first filing date, to the same applicant or his successor, provided that the filing in the Kingdom of Cambodia was made within six months following the first filing. a trademark was protected for 10 years and could be renewed indefinitely for successive periods of ten years. Failure to use a registered mark for more than five years without valid reasons could lead to nullification of the protection. Trademark rights could be transferred or licenced and the right holder had the exclusive right to request the competent authority to handle infringement cases. The use of a trademark by a licence holder (but not the mere licensing of the right) was considered as an act of use.

181. Protection could be granted to a mark without distinctive characteristics, provided that such mark had been widely used and enjoyed a good reputation in Cambodia. He confirmed that well-known marks were protected in accordance with

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article 6bis of the Paris Convention and article 16 of the TriPS agreement under article 4(e)(f) and article 14(f) of the law on Marks, Trade name and acts of Unfair Competition. Cambodia had already conducted several enforcement operations with respect to well-known marks, and he confirmed Cambodia’s commitment to adhere to, and effectively enforce, Cambodia’s international obligations and its intellectual property laws with respect to well-known marks in a fair and transparent manner in the future. The law also included provisions concerning unfair competition, including indications or allegations likely to mislead the public. no specific law on unfair competition was envisaged for the time-being.

(c) geographical indications, including appellations of origin

182. The representative of Cambodia said that Cambodia did not protect geographical indications at present. He expected a new law covering this subject, including additional protection for geographical indications for wines and spirits, to be promulgated in 2004.

(d) industrial designs

183. The representative of Cambodia said that industrial designs were protected according to the law on Patents, Utility Models and industrial designs, promulgated on 22 January 2003. only new industrial designs, i.e. designs not disclosed to the public through publication or use prior to the priority date, could be registered under the new law. Protection did not extend to parts of a design dictated essentially by technical considerations. industrial designs contrary to public order or morality could not be registered. applications for registration were to be submitted to the Ministry of industry, Mines, and energy, and the priority date was the date of filing or first claim. applications had to be published to afford an opportunity to oppose the registration. Protection was provided for 5 years and could be renewed twice. industrial designs could be transferred or licenced. The owner had the exclusive right to request the competent authority to take action against infringements and could claim compensation.

184. a Member invited Cambodia to specify how Cambodia’s legislation complied with the provisions of article 26.1 of the TriPS agreement concerning the right of an industrial design holder to prevent the importation of articles bearing or embodying a protected design. The representative of Cambodia replied that Cambodia’s legislation guaranteed the right for the holder to prohibit third persons from “exploiting” a registered industrial design, i.e. by making, selling, or importing articles incorporating the industrial design (Section 42.1 of the draft law).

(e) Patents

185. The representative of Cambodia said that the law on Patents, Utility Models and industrial designs had been promulgated on 22 January 2003. drafting of implementing regulations under this law would commence in the first quarter of

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2003. The law afforded patent protection to inventions which involved an inventive step and were industrially applicable. Patents could not be issued for discoveries, scientific theories and mathematical methods; schemes, rules and methods for doing business, performing intellectual activities, or playing games, and computer programs; diagnostic, therapeutic and surgical methods for the treatment of human beings and animals; inventions contrary to public order or morality; and biological methods for breeding plants and animals, other than microbiological methods, as well as products derived from these methods. in response to a specific question concerning the exclusions, he added that the algorithms used in computer programs, not the programmes perse, were ineligible for patent protection, and that “schemes or methods for doing business” were only ineligible for patent protection to the extent that they were lacking industrial application. These distinctions would be clarified in the implementing regulations to the law.

186. applications for registration were submitted to the Ministry of industry, Mines, and energy, and priority was given to the person having first filed an application or claimed priority to the patent. Patent applications were subject to mandatory examination as to form and substance. Patents were granted upon expiration of an 18 month period starting on the priority date and protection was provided for 20 years from the filing date. The patent holder had the exclusive right to transfer or licence a patent and to request third persons to stop infringement, and could claim compensation. Provisions on compulsory licensing, contained in articles 47-62 of the law on Patent, Utility Models and industrial designs, could be applied following three years of non-use of a patent, or if a patented product had not been offered for sale in sufficient quantity to supply the Cambodian market without valid reason, but only for use predominantly for the supply of the domestic market.

187. Specifically concerning action against counterfeit pharmaceuticals, he noted that right-holders could use provisions in the law on the Management of Pharmaceutical Products to protect their lawful rights. aware of the distinction between counterfeit and generic products, he noted that in the case of importation of counterfeit medicines, right holders could seek protection of their rights under the Trademark law and/or the provisions of the law on the Management of Pharmaceutical Products. article 12 of the latter provided for criminal penalties - fines of riels 20 million to 50 million, and prison terms ranging from 5 to 10 years - for knowingly producing, importing, exporting, distributing or selling unregistered narcotic drugs or pharmaceuticals that were counterfeit, of sub-standard quality or expired, and thus having an adverse effect on human health.

(f) Plant variety protection

188. The representative of Cambodia said that plant varieties had been excluded from the law on Patent, Utility Models and industrial designs. Thus, Cambodia did not provide plant variety protection at present, but a draft law on Plant Variety

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Protection was in preparation with the assistance of UPoV. Promulgation of the law was at present foreseen in 2005.

(g) layout designs of integrated circuits

189. a Member noted that Cambodia’s patent utility law did not appear to contain any provisions for the protection of layout-designs as required by article 35 of the TriPS agreement, and sought confirmation that these provisions were or would be provided for in a separate law.

190. The representative of Cambodia said that the subject-matter would be protected through a new law on layout designs of integrated Circuits. Cambodia was presently seeking technical assistance on this topic.

(h) requirements on undisclosed information, including trade secrets and test data

191. The representative of Cambodia said that article 128 of the law on Patent, Utility Models and industrial designs provided protection for undisclosed data. in addition, Cambodia would prepare and adopt a separate law on the Protection of Undisclosed information and Trade Secrets. The law was planned for adoption by the national assembly in 2004 and promulgation in 2005.

3. Measures to control abuse of intellectual property rights

192. The representative of Cambodia said that current measures to control abuse of intellectual property rights were based on the Provisions relating to the Judiciary and Criminal law and Procedure applicable in Cambodia during the Transitional Period of 10 September 1992, and declaration no. 368 of 15 december 1997 concerning measures to control abuse of intellectual property rights in Cambodia. in addition, new laws such as the law on Marks, Trade name and acts of Unfair Competition, the law on Copyright and related rights and the law on Patents, Utility Models and industrial designs contained provisions concerning the non-performance of obligations, such as failure to pay maintenance fees, or failure to use registered trademarks or patents for the period determined by the law, which could result in nullification of the protection or the granting of a licence to a third person or administrative body with a view to supplying the domestic market.

4. enforcement

(a) general obligations

193. The representative of Cambodia said that Cambodia’s draft laws on intellectual property would comply fully with the provisions of article 41 of the TriPS agreement concerning the availability of enforcement procedures under domestic legislation, the existence of fair and equitable procedures, and the opportunity for parties to proceedings to obtain the review of final administrative decisions and initial judicial decisions by a judicial authority.

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(b) Civil judicial procedures and remedies

194. The representative of Cambodia said that provisions on civil judicial procedures and remedies had been included in the draft Civil Code, Civil Procedure Code and specific intellectual property laws currently in preparation. implementing regulations for these laws and codes were under consideration. The Civil Procedure Code would include procedures concerning civil judgement, execution and provisional measures, and intellectual property legislation would cover provisions for remedies and provisional measures. enforcement authorities would comprise Courts, Customs, as well as CaMConTrol, an organisation under the authority of the Ministry of Commerce, and the economic Police, both in charge of fraud repression and inspections of exported and imported goods. Under the new regulations, courts - including municipal and provincial courts – would have the authority to handle cases of abuse of intellectual property rights, disputes over royalties and remuneration, violation of authors and application rights, and disputes related to the transfer and licensing of rights. The injured party could seek court injunctions to stop infringement and claim compensation for damages. The amount of damages would be calculated on a case-by-case basis. addressing a query by a Member regarding the factors used by the Courts to determine the damages in the absence of specific legislation on this issue, the representative of Cambodia said that the calculation was based on the value of the benefits lost because of the infringement and on the duration of the infringement act. He added that this matter was currently being discussed among judges and relevant authorities, although the elaboration of guidelines in assessing damages and imposing remedial measures was currently not being considered. The Civil Code and the Civil Procedure Code would provide the legal authority, though no detailed provisions, for the award of damages and other remedial measures. He nevertheless believed that Cambodia’s current iPr legislation and its future laws were, and would remain, in full compliance with the requirements of article 48 of the TriPS agreement with respect to the indemnification of the defendant.

195. Courts had the authority to order that documents be produced (article 152 of the draft Civil Procedure Code), and failure to do so would lead the Court to consider the other party’s allegations to be true (article 153), and to impose a fine on the impeding party (article 154). Confidential information was protected under article 42 of the Trademarks law and article 128 of the draft Patents law. a general provision referring to specific legislation was included in article 115.1 of the draft Civil Procedure Code.

196. a Member voiced concern about Cambodia’s efforts to ensure compliance with article 48 of the TriPS agreement regarding the indemnification of the defendant, including appropriate attorney’s fees. in response to a specific concern, the representative of Cambodia said that draft legislation had not provided judicial and administrative officials the authority to order infringers to provide right holders with information on third parties involved in the production and distribution of infringing

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goods, as mentioned in article 47 of the TriPS agreement, but investigative judges (including Customs and other competent authorities) could request infringers to submit such information to the Court in the case of criminal procedures, and the issue was addressed in article 42 (second paragraph) of the law on Marks, Trade name and acts of Unfair Competition. He confirmed that decisions on the merits in Court proceedings were provided in writing and made available to the public through publication in newspapers, and added that his government was also considering the publication of Court decisions in the official gazette of the Ministry of Commerce.

(c) Provisional measures

197. The representative of Cambodia said that courts and authorities responsible for administrative enforcement of intellectual property legislation had the authority to order prompt and effective provisional measures based on primafacie evidence to prevent an infringement and preserve relevant evidence. Pursuant to article 30a of the law on Marks, Trade name and Unfair Competition, there was primafacie evidence when there were reasonable grounds to believe that an infringement was taking place. applicable provisional measures included detention of material evidence and facilities, search for concealed materials and facilities, order to stop an infringement, confiscation of the infringing goods, and temporary seizure of the goods with a view to ensuring proper compensation.

(d) administrative procedures and remedies

198. The representative of Cambodia said that under the new regulations the authorities competent to apply administrative measures and remedies were the Market Control sections of the Ministry of Commerce, Ministry of industry, Mines, and energy, and Ministry of Culture and Fine arts; Customs offices; and the economic Police. administrative measures and remedies included warning, monetary fines up to 25 million riels (about US$6,000), seizure of material evidence and facilities, destruction of infringing goods, and compensation for damages. Pursuant to the law on Marks, Trade name and acts of Unfair Competition and the draft law on Copyrights and related rights, competent authorities had the power to issue injunctions to order a party to stop an infringement and to suspend clearance of goods, as stipulated in article 44.1 of the TriPS agreement, but did not have the authority to order infringers to provide right holders with information on third parties involved in the production and distribution of infringing goods. They could however acquire such information themselves. The law on Marks, Trade name and acts of Unfair Competition (article 46) and the law on Copyright and related rights (article 59) prohibited the re-exportation of counterfeit or pirated goods and conferred customs and other competent authorities the power to destroy infringing goods upon a court decision. infringing goods could not be destroyed without a court order.

(e) Special border measures

199. The representative of Cambodia said that the draft law on Customs did not

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include provisions on border measures as required by article 51-60 of the TriPS agreement. The necessary border measures had been incorporated in the law on Marks, Trade names and acts of Unfair Competition (articles 35-47). in addition, the law on Copyrights and related rights (article 63) included, by reference, all border measures included in the law on Marks, Trade names and acts of Unfair Competition. He saw no need to consolidate these measures in the new law on Customs, as the draft law (article 8) explicitly required the customs authorities to execute all laws of Cambodia, and this provision would be underpinned by a sub-decree to be prepared by the department of Customs and excises, in collaboration with the Ministries responsible for the protection of intellectual property.

200. Cambodia’s legislation provided for seizure, forfeiture and destruction of infringing goods, evidences, copies and equipment used in the creation of infringing goods, and prohibited the re-exportation of counterfeit trademark goods or use of different customs procedures. Under the new regulations, customs authorities were allowed to inform right holders about the possible importation or exportation of infringing goods. The right holder could apply to the customs authorities to suspend clearance of the suspected goods. The application should include a detailed description of the goods. The customs authorities were obliged to inform the right holder of the measures taken, and should cancel the measures if no proceedings had been initiated within 10 days. The right holder was liable for any damages resulting from an unsubstantiated application. in case of prima facie evidence, customs authorities could suspend clearance of suspected goods on their own initiative, and should immediately inform the right holder of the place and date of suspension.

(f) Criminal procedures

201. The representative of Cambodia said that infringement of intellectual property was liable to criminal prosecution pursuant to the law on Marks, Trade names and acts of Unfair Competition (articles 63 though 68), the law on Patent, Utility Models and industrial designs (articles 132 and 133), and the law on Copyright and related rights (articles 64 and 65). Criminal infringement cases were punishable with fines of up to 25 million riels (about US$6,000) and/or prison sentences ranging from one to 60 months. The maximum penalties were doubled for second offences committed within five years from the date of the first conviction. implementing regulations to the laws would specify the circumstances under which these criminal penalties would be imposed. in case of sale, distribution and importation of counterfeit pharmaceuticals, provisions in the law on the Management of Pharmaceuticals could also be applied to impose criminal penalties and protect the rights of the right-holders.

202. The representative of Cambodia confirmed that implementation of the TriPS agreement by Cambodia would proceed in accordance with the revised action Plan circulated in document WT/aCC/KHM/16/rev.1, and summarized in Table 12. Urged by a Member to accelerate work on the of the new Civil Procedure Code, which underpinned the enforcement of other laws, the representative of Cambodia said that

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the draft Civil Procedure Code had been completed and would be submitted to the Council of Ministers in the near future.

203. Having reviewed Cambodia’s action Plan for compliance with the requirements of the TriPS agreement, a Member sought a realistic plan laying out the measures that Cambodia would take over time to bring its regime into compliance with specific provisions of the TriPS agreement as soon as possible. The plan would constitute an understanding between Cambodia and the Working Party on how Cambodia would use the transition period, and form a blueprint for the technical assistance making compliance possible within the timeframe contemplated. Cambodia should also provide specific assurances on its application of measures covered by the TriPS agreement during any transition period approved by the Working Party. TriPS-consistent measures already in place should not be subject to transitions, and articles 3, 4 and 5 of the TriPS agreement, providing for interalia national treatment and MFn treatment, should apply from the date of accession. Moreover, Cambodia should not allow production of goods or works inconsistent with the substantive provisions of the TriPS agreement during the transition period.

204. The representative of Cambodia thanked the Working Party members for their support and for their pledges of technical assistance. For the reasons given above, the government of Cambodia requested that the Working Party grant a transitional period to 1 January 2007 to obtain technical assistance and equip the administration to implement fully the obligations of the TriPS agreement. The representative of Cambodia confirmed that should a transition be granted for the implementation of the WTo agreement on TriPS, his government was prepared to undertake the following commitments. during the transition periods in the action Plan for full implementation of the TriPS agreement, Cambodia will fully apply articles 3, 4 and 5 of the agreement that provide for, inter alia, national treatment and MFn treatment under current legislation in place. Cambodia will also ensure that any change made in its laws, regulations and practice during this period will not result in a lesser degree of consistency with the provisions of the TriPS agreement that existed on the date of accession. in addition, Cambodia will not grant patents, trademarks, or copyrights, or marketing approvals for pharmaceuticals or agricultural chemicals inconsistent with the provisions of the TriPS agreement.

205. The representative of Cambodia further confirmed that, should a transition be granted, his government would ensure that existing rates of infringement would not significantly increase and that any infringement of intellectual property rights would be addressed immediately in cooperation with the assistance from affected right holders. He further confirmed that during the transition period, that Cambodia would protect against unfair commercial use of undisclosed test or other data submitted in support of applications for marketing approval of pharmaceutical or of agricultural chemical products which utilize new chemical entities, by providing that no person other than the person who submitted such data may, without the permission of the

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latter person, rely on such data in support of an application for product approval for a period of at least five years from the date on which Cambodia granted marketing approval to the person that produced the data. Prior to the issuance of marketing approval of any pharmaceutical and agricultural chemical products, the relevant Ministries in Cambodia will determine the existence of a patent covering a product for which an application for marketing approval had been filed by a party other than the patentee, and will not approve such application for marketing approval until the date of the expiration of such patent. He added that Cambodia would seek out all available technical assistance to ensure that its capacity to fully enforce its TriPS-consistent legal regime upon expiration of the transition periods is assured and that Cambodia would make available all legislation in draft and promulgated form to WTo Members so that advice on TriPS-consistency can be obtained. in response to requests from delegations for more specificity, the representative of Cambodia presented an action Plan setting out details of the steps that still remained to be taken in order to achieve this objective and a timetable for each step (Table 12).

Table 12: action Plan for implementation of the agreement on Trade-related aspects of intellectual Property rights

action deadline

Promulgation of the law on Marks, Trade name and acts of Unfair Competition of 7 February 2002

law on the Management of Pharmaceuticals

Membership in:

- WiPo (since 1995)- the Paris Convention (since 1998)

2002 or before

Promulgation of :

- law on Patents, Utility Models and industrial designs of 22 January 2003- law on Copyright & related rights.

Membership in:

- the Berne Convention- geneva Phonogram Convention- Brussels Satellite Convention- the Patent Cooperation Treaty

implementation of the Sub-decree and implementing regulations for laws on Marks, Trade name and acts of Unfair Competition

Capacity building for key iP personnel in the field of trademarks

2003

review of all relevant texts by Working Party Prior to date of accession

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action deadline

Promulgation of

- law on geographical indications- Civil Code

implementation of Sub-decree and implementing regulations for laws on Copyrights & related rights; Patents, Utility Models and industrial designs.

Capacity building for key iP personnel in the field of copyrights; Patents, Utility Models and industrial designs.

not later than 1 January 2005

Promulgation of :

- law on layout design of integrated Circuits.- laws on Protection of Undisclosed information and Trade Secret- law on Plant Variety Protection.- Civil Procedure Code- Criminal Code

Membership in the international Convention for the Protection of new Varieties of Plants

implementation of Sub-decree and implementing regulations for :

- law on geographical indications- law on Protection of Undisclosed information and Trade Secret.

Capacity building for key iP personnel in the fields of geographical indications, and Protection of Undisclosed information and Trade Secret

not later than 1 January 2006

implementation of Sub-decree and implementing regulations for:

- law on layout design of integrated Circuits - law on Plant Variety Protection.

Capacity building for key iP personnel in the fields of trademarks; copyrights; patents, utility models, and industrial design; geographical indications; protection of undisclosed information and trade secret; layout design of integrated circuits; and plant variety protection.

establishment of any necessary additional legislation and regulations to provide a legal basis for enforcement mechanisms.


Full implementation of the agreement on Trade-related aspects of intellectual Property rights


206. The representative of Cambodia confirmed that Cambodia would apply the agreement on Trade-related aspects of intellectual Property rights no later than 1 January 2007 according to the action Plan in Table 12 with the understanding that during this period protection for intellectual property rights listed in paragraphs 204 and 205 would be applied in Cambodia. The Working Party took note of this commitment.

Policies affecting trade in services

207. The representative of Cambodia said that the services industry, which was dominated by private sector, had accounted for approximately 40 per cent of

70 WTo BiSd 2003


Cambodia’s gdP in 1999, having grown about six per cent per year between 1995 and 1999. The legal framework was still under development, and a number of services sectors remained to be regulated. information based on the services sectoral classification list was provided in document WT/aCC/KHM/2, annex 7a.

208. He added that Cambodia’s legislation generally complied with the principles and provisions of the general agreement on Trade in Services (gaTS). Foreign ownership of newspapers was limited to 20 per cent of the total number of newspapers in the Khmer language. Companies owned by foreigners could not own land. The number of foreign nationals to be employed in a particular establishment or services sector was limited to 10 per cent of the workforce and only available to residents of Cambodia. The Ministry of labour could authorize a higher percentage of foreign employment where specific skills were not available in the domestic market. Pursuant to the Cambodian law on Bar adopted on 15 June 1995, foreign lawyers could not represent clients, conduct activities to attract clients, or publish commercial advertisements. They were, however, permitted to work in commercial association with Cambodian lawyers. The commercial association requirement does not apply when legal services are provided in the areas of foreign and international law.

209. in 1989, Cambodia had replaced a mono-type banking system by a two-tier system comprising the central bank and commercial banks. Foreign banks had been authorised in Cambodia since 1991. The law on Banking and Financial institutions, promulgated in 1999, governed all financial operations, except insurance. as of 31 december 2002, the banking sector in Cambodia included 13 commercial banks, one of which was a State-owned bank, nine privately-owned banks, and three foreign-owned banks (two of which were subsidiaries). The banking sector also comprised four specialized banking institutions, which could only engage in lending activities aimed at providing rural credit and support to small and medium sized enterprises. The rural development Bank, which distributed funds received from donors, was one of these institutions. in addition, a large number of micro-finance institutions (around 90) were also operating in Cambodia. These institutions were non-governmental organizations engaging in humanitarian activities and focusing on poverty reduction in line with the policy introduced by his government in 2000. The micro-finance institutions provided some credit and promoted savings, especially among their members. He stressed that commercial banking was the main banking activity in Cambodia. The other institutions were marginal, and existed due to the unwillingness of commercial banks to provide such specialized services in Cambodia. The law on Banking and Financial institutions and subsequent regulations guaranteed foreign banks rights and obligations equal to local banks and there was no restriction regarding foreign ownership of banks. a list of laws and regulations concerning the banking sector was provided in document WT/aCC/KHM/2, annex 2, section 5.

210. The insurance sector had been regulated by the law on the establishment of insurance industry of 8 February 1992, the sub-decree on the Creation of the State-

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owned insurance Company of 20 September 1990, the sub-decree on the Control of insurance activity of 9 June 1992, and the notice of the government of 22 September 1992. a new insurance law had been promulgated in 2000, and an insurance sub-decree to implement the insurance law had been adopted in 2001. The law and the sub-decree established the general framework for the setting-up of insurance companies, including minimum capital requirements and solvency margins. Several private companies, including foreign insurance companies, competed in the non-life insurance market. The market also included CaMinCo, a State-owned insurance company operating on an equal commercial basis and in competition with the other insurance companies. all licensed insurance companies could provide all types of insurance products, including reinsurance. However, according to the insurance sub-decree, all insurance companies were required to re-insure 20 percent of their total risks in Cambodia. in addition, all insurance contracts with a total sum insured of US$500,000 or less had to be reinsured locally with any of the insurance companies operating in Cambodia. insurance companies were free to choose where and with which company to reinsure all other risks.

211. government monopolies existed in the supply of postal services for transported mail weighing less than 500 grams, advertising (to expire in 2003), railway transport, electricity distribution, and water supply. Preferential credits were being provided to electricité du Cambodge and to water supply services. exclusive suppliers were present in the wholesale distribution sector. The representative of Cambodia said that Cambodia’s authorities were acting in accordance with article Viii of the gaTS to ensure that monopolies and exclusive service suppliers would not abuse their monopoly position outside the scope of their monopoly rights.

212. in the telecommunication sector, the Ministry of Posts and Telecommunications of the Kingdom of Cambodia (MPTC) was responsible for operating telecommunication services and facilities, and issuing licenses. during 1990s, the market had been opened progressively to foreign investors in the form of joint ventures delivering international telecommunications and internet, radio, and mobile cellular services. according to a new law in preparation, Cambodia envisaged to establish an independent regulatory body providing for more transparency in the delivery of licences. The new law was expected to be ready for submission to the Council of Ministers by 2004. additional time would be needed for its adoption and implementation.

213. Concerning the establishment of enquiry points foreseen in article iii:4 of the gaTS, the representative of Cambodia said that information on trade in services was available from the aSean and international organizations department at the Ministry of Commerce.

72 WTo BiSd 2003


Transparency

Publication of information on trade

214. Concerning the transparency requirements prescribed in article X of the gaTT, article iii of the gaTS and other WTo agreements, the representative of Cambodia said that article 93 of Cambodia’s Constitution required laws to be published in the official Journal and brought to the knowledge and attention of the population before entering into force. according to article 93 of the Constitution, all laws and other regulations were published in the official Journal, in the Khmer language, and entered into force 10 days after their publication in Phnom Penh and 20 days in the rest of the country. implementing decisions of the Ministries were also published, and Cambodia would ensure that all regulations would be included per gaTT article X:1. The date of entry into force was stipulated in each law. as to the establishment of enquiry points stipulated in article iii of the general agreement on Trade in Services, he confirmed that Cambodia had set up operational enquiry points in conformity with the requirements of the WTo agreements on gaTS, TBT and SPS.

215. a Member stated the official Journal was only available by subscription, and many private sector entities seemed unaware of its existence. although all laws appeared to be published in the Journal, some new regulations had been omitted. This Member suggested that Cambodia might consider posting its official Journal on the internet to improve access to new laws and regulations, and would welcome other practical steps taken by Cambodia to ensure proper publication of new regulations in the official Journal. This Member also asked to what extent article 93 of the Constitution or other laws or regulations required the publication prior to enactment or implementation of regulations, judicial decisions and administrative rulings of general application to be published similarly “in such a manner as to enable governments and traders to become acquainted with them” as required by article X of the gaTT, and what steps Cambodia had taken to implement the transparency measures required by specific WTo agreements.

216. in response, the representative of Cambodia stated that Cambodia intended to provide a reasonable period, i.e. no less than 30 days, for comment to the appropriate authorities before measures pertaining to or affecting trade in goods, services and TriPS are adopted, except for those regulations and other measures involving national emergency or security, or for which the publication would impede law enforcement. The publication of such regulations and other measures would include the effective date of these measures and, where appropriate or possible, list the products and services affected by the particular measure, identified by appropriate tariff line and classification. He added that Cambodia would post the contents of current and past editions of the official Journal on the government website and keep them current.

217. The representative of Cambodia confirmed that from the date of accession

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all laws, regulations, decrees, judicial decisions and administrative rulings of general application related to trade would be published in a manner that fulfils WTo requirements. as such, no law or regulation related to international trade would become effective prior to such publication in the official Journal. He further stated that all laws which were amended to comply with the WTo agreements contained provisions which require such publication. decrees, sub-decrees and Prakas affecting international trade would be published in the official Journal. Cambodia’s Constitution and the laws currently in place or listed in the attachment as slated for near-term enactment would implement fully article X of the gaTT 1994 and the other transparency requirements in WTo agreements requiring notification and publication. He further confirmed that by 1 January 2004, Cambodia would establish or designate an official journal or website, published or updated on a regular basis and readily available to WTo Members, individuals and enterprises, dedicated to the publication of all regulations and other measures pertaining to or affecting trade in goods, services, and TriPS. The Working Party took note of these commitments.

notifications

218. The representative of Cambodia said that at the latest twelve months after the entry into force of the Protocol of accession, Cambodia would submit all initial notifications required by any agreement constituting part of the WTo agreement. any regulations subsequently enacted by Cambodia which gave effect to the laws enacted to implement any agreement constituting part of the WTo agreement would also conform to the requirements of that agreement.

Trade agreements

219. The representative of Cambodia said that the signing of the Paris Peace agreement in 1991 and the 1993 elections had allowed Cambodia to rejoin the international community and participate in multilateral and regional institutions. Thus, Cambodia was now a member of institutions such as the international Bank for reconstruction and development; the international Monetary Fund; the asian development Bank; the international development association; the Multilateral insurance guarantee agency; the United nations development Programme; the United nation Conference on Trade and development; the Food and agriculture organization; the international Fund for agricultural development; the international Civil aviation organization; the World intellectual Property organization; the international Standards organization; the World Health organization; the international Maritime organization; the international Telecommunications Union; the United nations educational, Scientific and Cultural organization; the World Tourism organization; the economic and Social Commission for asia and the Pacific; and the Paris Convention for the Protection of industrial Property rights.

220. Since 1993, Cambodia had concluded 24 agreements and memoranda of understanding relating to economic cooperation, foreign trade, promotion and

74 WTo BiSd 2003


protection of investment and intellectual property rights protection with 13 countries, including China, indonesia, Malaysia, the lao Pdr, Viet nam, Thailand, the russian Federation, the United States, the Philippines and the european Union. The bilateral trade agreements did not include preferential arrangements, but contained provisions granting MFn treatment on a general or specific basis (details are provided in document WT/aCC/KHM/2, pages 91-93). in addition, Cambodia had concluded a Memorandum of Mutual Cooperation on intellectual Property with Thailand; an investment incentives agreement with the United States; an agreement on Cultural and Scientific Cooperation with the russian Federation; an agreement on economic, Scientific and Technical Cooperation with Malaysia; as well as transit agreements with lao Pdr and Viet nam.

221. Cambodia had joined the association of South-east asian nations on 30 april 1999, which implied automatic accession to the aSean Free Trade area (aFTa). Together with the other members of aSean, Cambodia had accepted the agreement on the Common effective Preferential Tariff Scheme for the aSean Free Trade area (CePT), whereby the tariffs applicable to aSean products would be reduced to 0-5 per cent over a ten year period starting on 1 January 2000. Cambodia’s inclusion list (il), Temporary exclusion list (Tel), Sensitive list (Sl) and general exception list (gel) had been endorsed by the 13th aFTa Council and the 31st aSean economic Ministers Meeting in october 1999. at the third aSean informal Summit in november 1999, Cambodia had agreed to eliminate tariffs on essentially all aSean products by 2015. in addition to tariffs, the aSean framework also covered areas such as customs, industrial cooperation, intellectual property cooperation, services, economic cooperation, promotion and protection of investment, energy cooperation, facilitation of goods in transit, mutual recognition, etc.

222. The representative of Cambodia confirmed that the aSean Free Trade area was the only free trade area to which Cambodia was a member, and that Cambodia did not grant trade preferences to any trading partner outside the aSean framework. asked to provide the texts of the FTas, the representative of Cambodia said that the agreements related to aFTa would be submitted to the Working Party if members were unfamiliar with them. Statistical data on Cambodia’s preferential trade was not yet available.

223. The representative of Cambodia confirmed that Cambodia would observe all WTo provisions, including those of article XXiV of the gaTT 1994 and article V of the gaTS in the trade agreements to which it belongs, and would ensure that the provisions of these WTo agreements for notification, consultation and other requirements concerning free trade areas and customs unions of which Cambodia was a member were met from the date of accession. He confirmed that Cambodia would, within 12 months after accession, submit notifications and copies of the Free Trade area and Customs Union agreements to which it belongs to the Council for Trade in goods for transmittal to the Committee on regional Trade agreements (CrTas) for

75WTo BiSd 2003

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review. The Working Party took note of this commitment.

Conclusions

224. The Working Party took note of the explanations and statements of Cambodia concerning its foreign trade regime, as reflected in this report. The Working Party took note of the commitments given by Cambodia in relation to certain specific matters which are reproduced in paragraphs 25, 27, 36, 50, 55, 59, 62, 71, 77, 82, 93, 96, 99, 105, 108, 115, 120, 122, 131, 142, 144, 149, 151, 158, 164, 166, 206, 217 and 223 of this report. The Working Party took note that these commitments had been incorporated in paragraph 2 of the Protocol of accession of Cambodia to the WTo.

225. Having carried out the examination of the foreign trade regime of Cambodia and in the light of the explanations, commitments and concessions made by the representative of Cambodia, the Working Party reached the conclusion that Cambodia be invited to accede to the Marrakesh agreement establishing the WTo under the provisions of article Xii. For this purpose, the Working Party has prepared the draft decision and Protocol of accession reproduced in the appendix1 to this report, and takes note of Cambodia’s Schedule of Concessions and Commitments on goods (document WT/aCC/KHM/21/add.1) and its Schedule of Specific Commitments on Services (document WT/aCC/KHM/21/add.2) that are annexed to the draft Protocol. it is proposed that these texts be adopted by the Ministerial Conference when it adopts the report. When the decision is adopted, the Protocol of accession would be open for acceptance by Cambodia which would become a Member thirty days after it accepts the said Protocol. The Working Party agreed, therefore, that it had completed its work concerning the negotiations for the accession of the Kingdom of Cambodia to the Marrakesh agreement establishing the WTo.

anneX ilaws, regulations and other information Provided

to the Working Party by Cambodia

1. Financial Blueprint of the royal government of Cambodia (2001-2010);2. “law on Taxation” of 8 January 1997;3. Preah reach Kram on the “law on Foreign exchange”,

no. CS/rKM/0897/03 of 22 august 1997;4. Preah reach Kram (royal decree) on the “law on the organisation and

Functioning of the national Bank of Cambodia”, no. 0196/27 of 26 January 1996;

5. national Bank of Cambodia Prakas on the “accounting Process for Foreign Currency Transactions”, no. nBC/B700/50 of 17 February 2000;

1 not reproduced.

76 WTo BiSd 2003


6. draft law on negotiable instruments and Payment Transactions dated September 2002;

7. “law on the investment of the Kingdom of Cambodia” of 4 august 1994;8. draft amendment of the law on investment dated 29 March 2002;9. Kingdom of Cambodia anu-Kret on the “implementation of the law on

investment of the Kingdom of Cambodia”, no. 88/anK/BK of 29 december 1997;

10. anu-Kret (Sub-decree) on the “organization and Functioning of the Council for development of Cambodia (CdC) of 26 June 1995;

11. Kingdom of Cambodia anu-Kret on the “amendment of anu-Kret no. 51/anK/BK on the organization and Functioning of the Council for the development of Cambodia”, no. 048/anK/BK of 21 May 1999;

12. Council for the development of Cambodia (CdC), Cambodian investment Board (CiB) and department of investment Procedures and law “document required to apply for the Cancellation of an investment enter-prise from the CiB investment list”, “document required for an invest-ment enterprise application for Shares Transfer and deposit of a new Memorandum and articles of association”, “document required to apply for name Change of an investment enterprise”, “document required to apply for location Change of the investment enterprise” of 21 august 1998;

13. Kingdom of Cambodia Council for the development of Cambodia Sech-dkey Chun damneng (notice) on the “obligations to Provide information regarding the import and export activities of investment enterprises”, no. 1538/99 CdC of 1 July 1999;

14. Kingdom of Cambodia anu-Kret on “Measures restricting Certain invest-ment Sectors”, no. 80/anK/BK of 27 august 1999;

15. Kingdom of Cambodia Council for the development of Cambodia “notification on requirement to all Foreign entities accompany with evi-dence of innocence for Filling application Form”, no. 2736/99 CdC of 19 november 1999;

16. Kingdom of Cambodia Sarachor nernoam (instructing Circular) of the Council for the development of Cambodia on the “Management and Usage of CdC/CiB investment incentives by investment enterprises”, no. 165/00 CdC of 20 January 2000;

17. draft insolvency law;18. revised draft insolvency law dated July 2002;19. Kingdom of Cambodia Sechdkey Chun damneng (notice) of the Council

for the development of Cambodia on the “Payment of Tax debt owed by investment enterprises in the Kingdom of Cambodia”, no. 538/00 CdC of 22 February 2000;

20. Kingdom of Cambodia Sarachor nernoam (Circular) of the Council for the development of Cambodia on “Procedures for non-Performing investment

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enterprises”, no. 748/00 CdC of 15 March 2000;21. Kingdom of Cambodia Schdey Chun damneng (notification) of the

Council for the development of Cambodia on “investment enterprises”, no. 822/00 CdC of 23 March 2000;

22. land law (Unofficial english Translation);23. draft law of Personal Property leasing;24. explanatory notes to the law of Commercial Contracts of april 2001.25. “law on the Chambers of Commerce” of 16 May 1995;26. national Bank of Cambodia Prakas on the “Management of gemstone and

Valuable Metal Businesses”, no. nBC/999/100 of 10 September 1999;27. Kingdom of Cambodia anu-Kret on the “Creation of a national Permanent

Commission for Coordinating the Privatization and the Promotion of rubber Plantations”, no. 52/anK/BK of 6 September 1994;

28. Kingdom of Cambodia anu-Kret on “Build-operate-Transfer (BoT) Contract”, no. 11/anK/BK of 13 February 1998;

29. draft Civil Code;30. draft Civil Code dated 3 September 2002;31. draft Code of Civil Procedure of Cambodia;32. “law on the Bar” of 15 June 1995;33. “law on Criminal Procedure” of 28 January 1993;34. decision on the “Provisions relating to the Judiciary and Criminal law

and Procedure applicable in Cambodia during the Transitional Period” of 10 September 1992;

35. “law Bearing Upon Commercial regulations and the Commercial register” of 3 May 1995;

36. Kingdom of Cambodia Preah reach Kram “law on the amendments of articles 10, 11, 14, 16, 17, 21, 22, 25, 26, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 40, 42 and 44 of Chapter 2, articles 54, 57 and 58 of Chapter 4 and articles 59 and 60 of Chapter 5 of the law on the Commercial rules and Commerce register”, no. nS/rKM/1199/12 of 18 november 1999;

37. Ministry of Commerce Prakas on “Trading activities of Commercial Companies”, no. 017/PrK/MoC of 25 January 2000;

38. draft law on Customs dated 15 august 2002;39. Cambodia’s Customs Tariff 2001;40. Kingdom of Cambodia Prakas of the Council for development of

Cambodia on the “Provision of Customs duty exemption incentives for Support industries in Subsequent Years and authorization for Shares Transfer”, no. 2895/99/CdC of 9 december 1999;

41. “law on the Management of Pharmaceuticals” of 9 May 1996;42. Prakas on the “implementation of the Pre-Shipment inspection Service” of

31 august 2000.43. Ministry of Commerce Prakas (declaration) on the “issuance of the Cer-

tificate of origin, Commercial invoice and export licence for garments”,

78 WTo BiSd 2003


no. 1437/MoC/PrK of 21 June 1999;44. Ministry of Commerce Prakas “amending and Supplementing the issuance

of Certificates of origin, Commercial invoices and export licenses for exported garments”, no. 3414/MoC of 29 october 1999;

45. Preah reach Kram on the “law on the Management of Quality and Safety Products and Services”, no. nS/rKM/0600/001 of 2 June 2000;

46. Kingdom of Cambodia anu-Kret on “Standards and Management of agri-cultural Materials”, no. 69/anK/BK of 28 october 1998;

47. draft Sub-decree on Plant Quarantine;48. draft Sub-decree on Sanitary inspection of animal and animal Products

dated 11 June 2002;49. Kingdom of Cambodia anu-Kret on “Forest Management Concessions”,

no. 05/anK/BK of 7 February 2000;50. law on Forestry dated august 2002;51. Kingdom of Cambodia Sechdey Samrech on the “establishment of Joint

inter-Ministerial Committee for the Prevention of illegal Fisheries infrac-tions on Cambodian Territorial Seas”, no. 18/SSr/rgC of 3 april 2000;

52. draft law on Fisheries;53. draft Water Supply law;54. draft Water Supply and Sanitation regulatory law;55. draft law on Water resources Management;56. draft law on Copyright and related rights;57. revised draft law on Copyright and related rights dated May 2002;58. draft Patent Utility law;59. draft law on the Protection of Patents, Utility Model Certificates and

industrial designs dated 12 october 2001;60. decision on the establishment of the inquiry Points for (1) Services, (2)

SPS, (3) TBT, and (4) legal compliance with WTo agreements dated 26 July 2002;

61. law on Corporate accounts, Their audit and The accounting Profession;62. national Bank of Cambodia Prakas on “Banking license incorporated

Under domestic law”, no. Thor.796-153 Bis Pra.Kar of 25 october 1996;63. Preah reach Kram on the “law on Banking and Financial institutions”,

no. nS/rKM/1199/13 of 19 october 1999; 64. national Bank of Cambodia Prakas on the “Structure of the Foreign Trade

Bank of Cambodia and roles/duties of its Subordinated offices”, no. B8/99/140 of 21 december 1999;

65. national Bank of Cambodia Prakas on “licensing of rural Credit Specialized Banks” no. nBC/B700/05 of 1 January 2000;

66. national Bank of Cambodia Prakas on “the licensing of Banks”, no. nBC/B700/04 of 10 January 2000;

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67. national Bank of Cambodia Prakas on the “licensing of Micro-Financing institutions”, no. nBC/B700/06 of 11 January 2000;

68. national Bank of Cambodia Prakas on “liquidity for Banks and Micro Financing institutions”, no. nBC/B700-08 of 9 February 2000;

69. national Bank of Cambodia Prakas on “Banks’ Minimum Capital”, no. nBC/B700/39 of 9 February 2000;

70. national Bank of Cambodia Prakas on “Banks’ Solvency ratio”, no. nBC/B700/46 of 16 February 2000;

71. national Bank of Cambodia Prakas on the “Banks’ net Worth Calcula-tion”, no. nBC/B700/47 of 16 February 2000;

72. national Bank of Cambodia Prakas on the “Classification of and Provi-sioning for Bad and doubtful debts, including interest in Suspense”, no. nBC/B700/51 of 17 February 2000;

73. national Bank of Cambodia Prakas on “Controlling Bank’s large expo-sures”, no. nBC/B700/52 of 17 February 2000;

74. “insurance law” no. nS/rKM/0700/02 of 20 June 2000;75. draft Sub-decree on insurance dated 21 September 2002;76. draft Telecom act;77. draft Tourism law;78. revised draft Tourism law dated 23 May 2002;79. “law on nationality” of 20 august 1996;80. “law on immigration” of 26 august 1994;81. “labour law” of 13 March 1997;82. “law on the Press” of 18 July 1995;83. draft law of Secured Transactions; 84. draft Highway Code; and85. royal decree on the “law on the Suppression of gambling”,

no. nS/r. decr/0196/28 of 26 January 1996.

80 WTo BiSd 2003

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embe

r 20

03

17.

neg

otia

ble

and

Paym

ent

Tra

nsac

tion

law

gen

eral

Subm

issi

on to

CM

in M

arch

200

3 an

d to

the

Parl

iam

ent i

n a

pril

2003

.d

ecem

ber

2003

18.

Cus

tom

s C

ode

Cus

tom

s V

alua

tion

rul

es o

f o

rigi

ng

aT

T 1

994

ada

pted

by

the

CM

in d

ecem

ber

2002

and

sub

mitt

ed to

the

Parl

iam

ent i

n Ja

nuar

y 20

03.

dec

embe

r 20

03

19.

lan

d T

raffi

c l

aw (

Hig

hway

C

ode)

gen

eral

dra

ft c

ompl

eted

by

the

Min

istr

y of

Pub

lic W

orks

and

T

rans

port

s; S

ubm

issi

on to

CM

is e

xpec

ted

in 2

001a

nd to

the

Parl

iam

ent i

n Ja

nuar

y 20

02.

dec

embe

r 20

03

20.

Wat

er r

esou

rces

Man

agem

ent

law

gen

eral

Bei

ng d

raft

ed b

y th

e M

inis

try

of W

ater

res

ourc

es a

nd

Met

eoro

logy

; sub

mis

sion

to th

e C

M is

exp

ecte

d in

apr

il 20

03

and

to th

e Pa

rlia

men

t in

May

200

3.d

ecem

ber

2003

21.

Wat

er S

uppl

y l

awg

ener

alB

eing

dra

fted

by

the

Min

istr

y of

ind

ustr

y, M

ines

, and

ene

rgy;

su

bmis

sion

to th

e C

M is

exp

ecte

d in

Mar

ch 2

003

and

to th

e Pa

rlia

men

t in

apr

il 20

03.

dec

embe

r 20

03

Ye

ar

200

422

. l

aw o

n e

xpor

t Pro

cess

ing

zon

es

(ePz

s)g

aT

T 1

994

dra

ft c

ompl

eted

by

the

Min

istr

y of

ind

ustr

y, M

ines

and

e

nerg

y; S

ubm

issi

on to

CM

is e

xpec

ted

in M

arch

200

3 an

d to

th

e Pa

rlia

men

t in

Sept

embe

r 20

03.

Janu

ary

2004

23.

Com

mer

cial

arb

itrat

ion

law

gen

eral

Subm

issi

on to

CM

is e

xpec

ted

in F

ebru

ary

2003

and

to th

e Pa

rlia

men

t in

Mar

ch 2

003.

Janu

ary

2004

82 WTo BiSd 2003

law

agr

eem

ent(

s)St

atus

of

dra

fte

xpec

ted

app

rova

l dat

e

(Par

liam

ent)

24.

Civ

il a

viat

ion

law

gen

eral

dra

ft c

ompl

eted

by

the

Stat

e Se

cret

aria

t for

Civ

il a

viat

ion;

Su

bmitt

ed to

CM

in J

une

2002

and

to th

e Pa

rlia

men

t in

dec

embe

r 20

02.

Janu

ary

2004

25.

inso

lven

cy l

awg

ener

alSu

bmis

sion

to C

M is

exp

ecte

d in

Mar

ch 2

003

and

to th

e Pa

rlia

men

t in

apr

il 20

03.

Janu

ary

2004

26.

Secu

red

Tra

nsac

tions

law

gen

eral

Subm

issi

on to

CM

is e

xpec

ted

in o

ctob

er 2

003

and

to th

e Pa

rlia

men

t in

dec

embe

r 20

03.

Febr

uary

200

4

27.

Com

mer

cial

Con

trac

ts l

awg

ener

ald

raft

com

plet

ed b

y th

e M

inis

try

of C

omm

erce

; Sub

mis

sion

to

CM

is e

xpec

ted

in n

ovem

ber

2003

and

to th

e Pa

rlia

men

t in

dec

embe

r 20

03.

Febr

uary

200

4

28.

Com

mer

cial

lea

sing

law

gen

eral

d

raft

com

plet

ed b

y th

e M

inis

try

of C

omm

erce

; Sub

mis

sion

to

CM

is e

xpec

ted

in d

ecem

ber

2003

and

to th

e Pa

rlia

men

t in

Janu

ary

2004

.Ju

ne 2

004

29.

Tele

com

mun

icat

ions

law

ga

TS

dra

ft u

nder

rev

iew

by

the

Min

istr

y of

Pos

t and

Te

leco

mm

unic

atio

ns; S

ubm

issi

on to

CM

is e

xpec

ted

in o

ctob

er

2003

and

to th

e Pa

rlia

men

t in

dec

embe

r 20

03.

June

200

4

30.

Fish

erie

s l

awSP

S

Bei

ng d

raft

ed b

y th

e M

inis

try

of a

gric

ultu

re, F

ores

try

and

Fish

erie

s; S

ubm

issi

on to

CM

is e

xpec

ted

in d

ecem

ber

2003

an

d to

the

Parl

iam

ent i

n Ja

nuar

y 20

04.

June

200

4

31.

law

on

lay

out d

esig

ns o

f in

tegr

ated

Cir

cuit

T

riP

STa

req

uest

ed b

y th

e M

inis

try

of i

ndus

try,

Min

es, a

nd e

nerg

y to

pre

pare

dra

ft; S

ubm

issi

on to

CM

is e

xpec

ted

in S

epte

mbe

r 20

03 a

nd to

the

Parl

iam

ent i

n Fe

brua

ry 2

004.

July

200

4

32.

law

on

Plan

t Var

iety

Pro

tect

ion

Tr

iPS

Ta r

eque

sted

by

the

Min

istr

y of

ind

ustr

y, M

ines

, and

ene

rgy

to p

repa

re d

raft

; Sub

mis

sion

to C

M is

exp

ecte

d in

M

arch

200

3 an

d to

the

Parl

iam

ent i

n Se

ptem

ber

2004

.S

epte

mbe

r 20

04

33.

law

on

Safe

guar

d M

easu

res

Safe

guar

dsTa

req

uest

ed b

y th

e M

inis

try

of C

omm

erce

to p

repa

re d

raft

; Su

bmis

sion

to C

M is

exp

ecte

d in

Sep

tem

ber

2003

and

to th

e Pa

rlia

men

t in

apr

il 20

04.

oct

ober

200

4

83WTo BiSd 2003

law

agr

eem

ent(

s)St

atus

of

dra

fte

xpec

ted

app

rova

l dat

e

(Par

liam

ent)

34.

law

on

ant

i-du

mpi

ng M

easu

res

and

on C

ount

erva

iling

Mea

sure

s

ant

i-d

umpi

ngSu

bsid

ies

and

Cou

nter

vaili

ng

Mea

sure

s

Ta r

eque

sted

by

the

Min

istr

y of

Com

mer

ce to

pre

pare

dra

ft;

Subm

issi

on to

CM

is e

xpec

ted

in S

epte

mbe

r 20

03 a

nd to

the

Parl

iam

ent i

n Ja

nuar

y 20

04.

oct

ober

200

4

35.

law

on

geo

grap

hica

l ind

icat

ions

in

clud

ing

app

ella

tion

of o

rigi

nT

riP

STa

req

uest

ed b

y th

e M

inis

try

of C

omm

erce

to p

repa

re d

raft

; Su

bmis

sion

to C

M is

exp

ecte

d in

apr

il 20

04 a

nd to

the

Parl

iam

ent i

n Ju

ne 2

004

dec

embe

r 20

04

36.

law

on

Prot

ectio

n of

U

ndis

clos

ed i

nfor

mat

ion

Tr

iPS

Ta r

eque

sted

by

the

Min

istr

y of

Com

mer

ce to

pre

pare

dra

ft;

Subm

issi

on to

CM

is e

xpec

ted

in o

ctob

er 2

003

and

to th

e Pa

rlia

men

t in

Mar

ch 2

004.

nov

embe

r 20

04

37.

law

on

rul

es o

f o

rigi

nr

ules

of

ori

gin

Ta r

eque

sted

by

the

Min

istr

y of

Com

mer

ce to

pre

pare

dra

ft;

Subm

issi

on to

CM

is e

xpec

ted

in J

une

2004

and

to th

e Pa

rlia

men

t in

aug

ust 2

004.

dec

embe

r 20

04

38.

law

est

ablis

hing

the

Com

mer

cial

Cou

rtg

ener

alTa

req

uest

ed b

y th

e M

inis

try

of C

omm

erce

and

the

Min

istr

y of

Jus

tice

to p

repa

re d

raft

; Sub

mis

sion

to C

M is

exp

ecte

d in

d

ecem

ber

2003

and

to th

e Pa

rlia

men

t in

Febr

uary

200

4.d

ecem

ber

2004

39.

Civ

il P

roce

dure

Cod

eg

ener

alB

eing

dra

fted

by

the

Min

istr

y of

Jus

tice;

Sub

mis

sion

to C

M is

ex

pect

ed in

Jun

e 20

03 a

nd to

the

Parl

iam

ent i

n

dec

embe

r 20

03.

dec

embe

r 20

04

40.

Civ

il C

ode

gen

eral

Bei

ng d

raft

ed b

y th

e M

inis

try

of J

ustic

e; S

ubm

issi

on to

CM

is

expe

cted

in J

une

2003

and

to th

e Pa

rlia

men

t in

d

ecem

ber

2003

June

200

4

41.

Cri

min

al P

roce

dure

s C

ode

gen

eral

B

eing

und

er r

evie

w b

y th

e M

inis

try

of J

ustic

e; S

ubm

issi

on to

C

M is

exp

ecte

d in

Jun

e 20

03 a

nd to

the

Parl

iam

ent i

n

June

200

4.d

ecem

ber

2004

42.

Cri

min

al C

ode

gen

eral

B

eing

und

er r

evie

w b

y th

e M

inis

try

of J

ustic

e; S

ubm

issi

on to

C

M is

exp

ecte

d in

Sep

tem

ber

2003

and

to th

e Pa

rlia

men

t in

Mar

ch 2

004.

nov

embe

r 20

04

84 WTo BiSd 2003

law

agr

eem

ent(

s)St

atus

of

dra

fte

xpec

ted

app

rova

l dat

e

(Par

liam

ent)

Ye

ar

200

5

43.

law

on

lay

out d

esig

ns o

f in

tegr

ated

Cir

cuit

Tr

iPS

Ta r

eque

sted

by

the

Min

istr

y of

ind

ustr

y, M

ines

, and

ene

rgy

to p

repa

re d

raft

; Sub

mis

sion

to C

M is

exp

ecte

d in

Jun

e 20

04

and

to th

e Pa

rlia

men

t in

aug

ust 2

004.

Janu

ary

2005

44.

law

on

Pla

nt V

arie

ty P

rote

ctio

nT

riP

STa

req

uest

ed b

y th

e M

inis

try

of i

ndus

try,

Min

es, a

nd e

nerg

y to

pre

pare

dra

ft; S

ubm

issi

on to

CM

is e

xpec

ted

in J

uly

2004

an

d to

the

Parl

iam

ent i

n Se

ptem

ber

2004

.Ja

nuar

y 20

05

45.

Com

mer

cial

lea

sing

law

gen

eral

d

raft

com

plet

ed b

y th

e M

inis

try

of C

omm

erce

; Sub

mis

sion

to

CM

is e

xpec

ted

in J

une

2004

and

to th

e Pa

rlia

men

t in

aug

ust

2004

.Ja

nuar

y 20

05

46.

Mer

chan

t Shi

ppin

g l

awg

aT

SB

eing

dra

fted

by

the

Min

istr

y of

Pub

lic W

orks

and

Tra

nspo

rts;

su

bmis

sion

to th

e C

M is

exp

ecte

d in

nov

embe

r 20

04 a

nd to

th

e Pa

rlia

men

t in

dec

embe

r 20

04.

Febr

uary

200

5

47.

law

on

Pro

tect

ion

of

Und

iscl

osed

inf

orm

atio

nT

riP

STa

req

uest

ed b

y th

e M

inis

try

of C

omm

erce

to p

repa

re d

raft

; Su

bmis

sion

to C

M is

exp

ecte

d in

oct

ober

200

4 an

d to

the

Parl

iam

ent i

n n

ovem

ber

2004

.M

arch

200

5

48.

law

on

ant

i-du

mpi

ng M

easu

res

and

on C

ount

erva

iling

Mea

sure

s

ant

i-d

umpi

ngSu

bsid

ies

and

Cou

nter

vaili

ng

Mea

sure

s

Ta r

eque

sted

by

the

Min

istr

y of

Com

mer

ce to

pre

pare

dra

ft;

Subm

issi

on to

CM

is e

xpec

ted

in S

epte

mbe

r 20

04 a

nd to

the

Parl

iam

ent i

n d

ecem

ber

2004

.M

arch

200

5

49.

Com

mer

cial

age

ncy

law

gen

eral

d

raft

com

plet

ed b

y th

e M

inis

try

of C

omm

erce

; Sub

mis

sion

to

CM

is e

xpec

ted

in S

epte

mbe

r 20

04 a

nd to

the

Parl

iam

ent i

n n

ovem

ber

2004

.Fe

brua

ry 2

005

50.

Cri

min

al C

ode

gen

eral

B

eing

und

er r

evie

w b

y th

e M

inis

try

of J

ustic

e; S

ubm

issi

on to

C

M is

exp

ecte

d in

Sep

tem

ber

2004

and

to th

e Pa

rlia

men

t in

nov

embe

r 20

04.

Mar

ch 2

005

51.

law

on

Cri

min

al P

roce

dure

sg

ener

al

Bei

ng u

nder

rev

iew

by

the

Min

istr

y of

Jus

tice;

Sub

mis

sion

to

CM

is e

xpec

ted

in n

ovem

ber

2004

and

to th

e Pa

rlia

men

t in

dec

embe

r 20

04.

apr

il 20

05

85WTo BiSd 2003

law

agr

eem

ent(

s)St

atus

of

dra

fte

xpec

ted

app

rova

l dat

e

(Par

liam

ent)

52.

Com

mer

cial

age

ncy

law

gen

eral

d

raft

com

plet

ed b

y th

e M

inis

try

of C

omm

erce

; Sub

mis

sion

to

CM

is e

xpec

ted

in n

ovem

ber

2004

and

to th

e Pa

rlia

men

t in

dec

embe

r 20

04.

June

200

5

53.

Civ

il Pr

oced

ure

Cod

eg

ener

alB

eing

dra

fted

by

the

Min

istr

y of

Jus

tice;

Sub

mis

sion

to C

M

is e

xpec

ted

in d

ecem

ber

2003

and

to th

e Pa

rlia

men

t in

Mar

ch

2004

.Ju

ne 2

005

54.

Civ

il C

ode

gen

eral

Bei

ng d

raft

ed b

y th

e M

inis

try

of J

ustic

e; S

ubm

issi

on to

CM

is

expe

cted

in o

ctob

er 2

003

and

to th

e Pa

rlia

men

t in

dec

embe

r 20

04Ju

ne 2

005

55.

law

on

Safe

guar

d M

easu

res

Safe

guar

dsTa

req

uest

ed b

y th

e M

inis

try

of C

omm

erce

to p

repa

re d

raft

; Su

bmis

sion

to C

M is

exp

ecte

d in

nov

embe

r 20

04 a

nd to

the

Parl

iam

ent i

n d

ecem

ber

2004

. J

uly

2005

Ye

ar

200

6

56.

Com

petit

ion

law

gen

eral

Ta

req

uest

ed b

y th

e M

inis

try

of C

omm

erce

to p

repa

re d

raft

; Su

bmis

sion

to C

M is

exp

ecte

d in

oct

ober

200

5 an

d to

the

Parl

iam

ent i

n d

ecem

ber

2005

.Ja

nuar

y 20

06

57.

Secu

ritie

s an

d e

xcha

nge

law

sg

ener

alB

eing

dra

fted

by

the

Min

istr

y of

eco

nom

y an

d Fi

nanc

e;

subm

issi

on to

the

CM

is e

xpec

ted

in J

une

2005

and

to th

e Pa

rlia

men

t in

oct

ober

200

5.Ja

nuar

y 20

06

86 WTo BiSd 2003

Tabl

e 1(

a):

Stat

us o

f C

ambo

dia’

s Pr

ivat

izat

ion

Prog

ram

me

(at e

nd-a

pril

2000

)

Con

trol

ling

Min

istr

y

ent

erpr

ises

to b

e r

etai

ned

ent

erpr

ises

to b

e Pr

ivat

ized

ent

erpr

ises

alr

eady

Pri

vatiz

ede

nter

pris

es

alre

ady

tran

sfor

med

in

to P

ublic

e

nter

pris

es

Tota

lFu

lly

activ

er

educ

ed

activ

ityid

leTo

tal

Fully

ac

tive

red

uced

ac

tivity

idle

Tota

ll

ease

d en

terp

rise

sJo

int

vent

ure

Sol

d to

pr

ivat

e se

ctor

Plan

ning

00

00

00

00

00

10

1

agr

icul

ture

00

00

52

07

222

07

31

Com

mer

ce0

00

00

20

219

05

327

Cul

ture

00

00

00

00

40

00

4

Hea

lth0

00

00

00

01

11

14

indu

stry

00

00

03

03

500

40

54

Publ

ic w

orks

and

Tra

nspo

rt4

10

50

40

415

02

017

Post

and

Tel

ecom

mun

icat

ions

00

00

00

00

21

00

3

Cou

ncil

of m

inis

ters

10

01

00

00

31

20

6

Fina

nce

00

00

00

00

00

30

3

Fore

ign

aff

airs

00

00

00

00

80

00

8

def

ence

00

00

00

00

60

00

6

info

rmat

ion

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87WTo BiSd 2003

accession

Table 1(b): list of State-owned enterprises (as per March 2003)

no. Ministry name of enterprisei. STaTe-oWned enTerPriSeS

1. Ministry of agriculture, Forestry, and Fisheries

Chup rubber Plantation Company;Krek rubber Plantation Company;Memut rubber Plantation Company;Chamkar andaung rubber Plantation Company;Snuol rubber Plantation Company;Pem Chang rubber plantation Company;Boeung Ket rubber Plantation Company;agricultural inputs Company

2. Ministry of Public Works and Transport

Sihanouk Ville Port;Phnom Penh Port;Kampuchea Shipping agency and Broker

(KaMSaB);laboratory of Construction;royal railway of Cambodia;neak loeung Ferry;Prek Kdam Ferry

3. Phnom Penh Municipality Phnom Penh Water Supply

4. Ministry of industry, Mines and energy electricity of Cambodia (edC)

5. Ministry of economy and Finance rural development Bank

6. Ministry of Commerce green Trade Companyii. JoinT-VenTUre enTerPriSeS (51 per cent State participation)

Camintel Company; Cambodia Pharmaceutical enterprises

Table 1(c): enterprises to remain in State ownership upon completion of the privatization programme

no. Ministry State-owned enterprises to be retained1. Ministry of Commerce green Trade Company

2. Ministry of industry, Mines and energy electricity of Cambodia (edC)

3. office of the Council of Ministers

Printing House of the office of the Council of Ministers

4. Ministry of economy and Finance rural development Bank

5. Ministry of Public Works and Transport

Sihanouk Ville Port, Phnom Penh Port, Kampuchea Shipping agency and Broker (KaMSaB), laboratory of Construction, royal railway Station, neak loeung Ferry, Prek Tamak Ferry and Prek Kdam Ferry.

6. Ministry of agriculture, Forestry, and Fisheries

agricultural inputs Company. discussions are ongoing on whether the 7 rubber State-owned enterprises are be retained as state-owned enterprises after the privatization is completed.

88 WTo BiSd 2003


Table 2: excise taxes levied on motor vehicles and motorcycles in Cambodia

Heading HS - Code description of goods excise rate

87.02 Motor vehicles for the transport of ten or more persons, including the driver.

- With compression-ignition internal combustion piston engine (diesel or semi-diesel):

8702.10.10 - - gross vehicle weight exceeding 6t but not exceeding

18t, not fully assembled 10

8702.10.20 - - gross vehicle weight exceeding 6t but not exceeding

18t, fully assembled 10

8702.10.90 - - other 10 8702.90.00 - other 10

87.03 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading no. 87.02), including station wagons and racing cars.

- other vehicles, with spark-ignition internal combustion reciprocating piston engine:

- - of a cylinder capacity not exceeding 1,000 cc:

8703.21.20 - - - other vehicles for the transport of not more than 8 persons, including the driver 15

8703.21.30 - - - other vehicles for the transport of 9 persons,

including the driver 15

- - of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc:

8703.22.20 - - - other vehicles for the transport of not more than 8

persons, including the driver 45

8703.22.30 - - - other vehicles for the transport of 9 persons,


- - of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc:

- - - other, of a cylinder capacity exceeding1500 cc but not exceeding 2,000 cc:

8703.23.21 - - - - For the transport of not more than 8 persons,


8703.23.22 - - - - For the transport of 9 persons, including the driver 45 - - - other, of a cylinder capacity exceeding 2,000 cc but

not exceeding 3,000 cc:



8703.23.32 - - - - For the transport of 9 persons, including the driver 80 - - of a cylinder capacity exceeding 3,000 cc: - - - other, of a cylinder capacity not exceeding 4,000cc:

8703.24.21 - - - - For the transport of not more than 8 persons, including the driver 110

8703.24.22 - - - - For the transport of 9 persons, including the driver 110 - - - other, of a cylinder capacity exceeding 4,000 cc:


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accession


8703.24.32 - - - - For the transport of 9 persons, including the driver 110 - other vehicles, with compression-ignition internal

combustion piston engine (diesel or semi-diesel):

- - of a cylinder capacity not exceeding 1,500 cc: - - - other , of cylinder capacity not exceeding 1,000 cc:






8703.31.32 - - - - For the transport of 9 persons, including the driver 45 - - of a cylinder capacity exceeding 1,500 cc but not

exceeding 2,500 cc:

- - - other, of a cylinder capacity exceeding 1,500 cc but not exceeding 2,000 cc:







8703.32.32 - - - - For the transport of 9 persons, including the driver 80 - - of a cylinder capacity exceeding 2,500cc: - - - other, of a cylinder capacity exceeding 2,500cc but




8703.33.22 - - - - For the transport of 9 persons, including the driver 80 - - - other, of a cylinder capacity exceeding 3,000 cc:


8703.33.32 - - - - For the transport of 9 persons, including the driver 11087.04 Motor vehicles for the transport of goods

- other, with compression-ignition internal combustion piston engine (diesel or semi-diesel):

8704.21.00 - - g.v.w. not exceeding 5 tonnes 10 8704.22.00 - - g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes 10 8704.23.00 - - g,v,w, exceeding 20 tonnes. 10 - other, with spark-ignition internal combustion piston

engine:

8704.31.00 - - g.v.w.not exceeding 5 tonnes 10 8704.32.00 - - g.v.w. exceeding 5 tonnes 10 8704.90.00 - other 10

90 WTo BiSd 2003



87.06 Chassis fitted with engines, for the motor vehicles of headings nos. 87.01 to 87. 05.

8706.00.10 - For vehicles of subheading no. 8702.10.10 of gross

vehicle weight of 6t or more but not exceeding 18t 25

- For vehicles of heading no 87.03:

8706.00.21 - - For vehicles of subheadings no 8703.21.20, 8703.21.30, 8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31, 8703.31.32, 8703.32.21, 8703.32.22

25

8706.00.22

- - For vehicles of subheadings no 8703.23.31, 8703.23.32, 8703.24.21, 8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21, 8703.33.22, 8703.33.31, 8703.33.32

25

8706.00.23 - - For vehicles of subheadings no 8703.21.10, 8703.22.10, 8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10,8703.33.10

25

8706.00.90 - other 2587.07 Bodies (including cabs), for the motor vehicles of

headings nos. 87.01 to 87.05.

- For vehicles of heading no 87.03:


25


25

8707.10.30 - - For vehicles of subheadings no 8703.21.10, 8703.22.10, 8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.10

25

8707.90.00 - other 2587.08 Parts and accessories of the motor vehicles of headings

nos. 87.01 to 87.05.

- Bumpers and parts thereof: - - of moulded plastic: 8708.10.12 - - - For vehicles of headings nos. 8702 and 8704 except

subheading no.8704.10.0025

8708.10.13 - - - For vehicles of subheadings no 8703.21.20, 8703.21.30, 8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31, 8703.31.32, 8703.32.21, 8703.32.22

25


25

8708.10.15 - - - For vehicles of subheadings no 8703.21.10, 8703.22.10, 8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.10

25

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- - other: 8708.10.92 - - - For vehicles of heading nos. 8702 and 8704 except



25

8708.10.94 - - - For vehicles of subheadings no 8703.23.31, 8703.23.32, 8703.24.21,

25

8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,

25

8703.33.22, 8703.33.31, 8703.33.32 25 8708.10.95 - - - For vehicles of subheadings no 8703.21.10,

8703.22.10, 8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.10

25

- other parts and accessorie of bodies (including cabs): - - Safety seat belts: 8708.21.20 - - - For vehicles of headings nos. 8702 and 8704 except



25


25


25

- - other: - - - Components of door trim assembly: 8708.29.12 - - - - For vehicles of headings nos. 8702 and 8704

except subheading no.8704.10.0025

8708.29.13 - - - - For vehicles of subheadings no 8703.21.20, 8703.21.30, 8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31, 8703.31.32, 8703.32.21, 8703.32.22

25


25

8708.29.15 - - - - For vehicles of subheadings no 8703.21.10, 8703.22.10, 8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.10

25

- - - other: 8708.29.92 - - - - For vehicles of headings nos. 8702 and 8704


92 WTo BiSd 2003




25


25


25

- Brakes and servo-brakes and parts thereof: - - Mounted brake linings: 8708.31.20 - - - For vehicles of headings nos. 8702 and 8704 except



25


25


25

- - other: 8708.39.20 - - - For vehicles of headings nos. 8702 and 8704 except



25


25

8708.39.50 - - - For vehicles of subheadings no 8703.21.10, 8703.22.10,

25

8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.10

25

- gear boxes: 25 - - not fully assembled: 25 8708.40.12 - - - For vehicles of headings nos. 8702 and 8704 except



25

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accession



25


25

- - Fully assembled: 8708.40.22 - - - For vehicles of headings nos. 8702 and 8704 except



25


25


25

- drive-axles with differential, whether or not provided with other transmission components:

- - not fully assembled: 8708.50.12 - - - For vehicles of headings nos. 8702 and 8704 except

subheading no.8704.10.00 25


25


25


25




25


25

94 WTo BiSd 2003




25

- non-driving axles and parts thereof: - - not fully assembled: 8708.60.12 - - - For vehicles of headings nos. 8702 and 8704 except



25


25


25




25


25


25

- road wheels and parts and accessories thereof: - - Wheel centre discs: 8708.70.12 - - - For vehicles of headings nos. 8702 and 8704 except



25


25


25

- - other:

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accession


8708.70.92 - - - For vehicles of headings nos. 8702 and 8704 except subheading no.8704.10.00

25


25


25


25

- Suspension shock-absorbers: - - Parts: 8708.80.12 - - - For vehicles of headings nos. 8702 and 8704 except



25


25


25

- - other: 8708.80.92 - - - For vehicles of headings nos. 8702 and 8704 except

subheading no.8704.10.00 25


25


25


25

- other parts and accessories: - - radiators: 8708.91.20 - - - For vehicles of headings nos. 8702 and 8704 except


96 WTo BiSd 2003




25


25


25

- - Silencers and exhaust pipes: - - - Straight-through silencers: 8708.92.12 - - - - For vehicles of headings nos. 8702 and 8704



25


25


25




25


25


25

- - Clutches and parts thereof: 8708.93.20 - - - For vehicles of headings nos. 8702 and 8704 except



25

97WTo BiSd 2003

accession



25


25

- - Steering wheels, steering columns and steering boxes: - - - Steering wheels: 8708.94.12 - - - - For vehicles of headings nos. 8702 and 8704

except subheading no.8704.10.00 25


25


25


25

- - - Steering columns and steering boxes: 8708.94.22 - - - - For vehicles of headings nos. 8702 and 8704



25


25


25

- - other: - - - Brake and clutch pedals; chassis for asian Utility

Vehicles; fuel tanks, assembled: 8708.99.12 - - - - For vehicles of headings nos. 8702 and 8704



25


25

98 WTo BiSd 2003




25

- - - Unassembled fuel tanks: 8708.99.22 - - - - For vehicles of headings nos. 8702 and 8704



25


25


25




25


25


25

87.11 Motorcycles (including mopeds) and cycles fitted with

auxiliary motors; with or without side-cars; side cars.

87112010 - With reciprocating internal combustion piston engine of a cylinder capacity exceeding 50 cc but not exceeding 150 cc:

5

8711.20.20 - - With reciprocating internal combustion piston engine of a cylinder capacity exceeding 125 cc but not exceeding 250 cc

45

8711.30.00 - With reciprocating internal combustion piston engine of a cylinder capacity exceeding 250 cc but not exceeding 500 cc

45

8711.40.00 - With reciprocating internal combustion piston engine of a cylinder capacity exceeding 500 cc but not exceeding 800 cc

45

8711.50.00 - With reciprocating internal combustion piston engine of a cylinder capacity exceeding 800 cc

45

99WTo BiSd 2003

accession


87119010 - With cylinder capacity less than 125 cc 5 8711.90.20 - - With cylinder capacity 125 cc or more 45

87.14 Parts and accessories of vehicles of headings nos. 87.11 to 87.13.

- of motorcycles (including mopeds): 87141110 - - For cycle of subheading nos 87111000, 87112010 and

871190105

8714.11.20 - - - For cycles of subheadings nos. 8711.20.20, 8711.30.00, 8711.40.00, 8711.50.00, 8711.90.20

15

87141910 - - For cycles of subheadings nos 87111000,87112010 and 87119010

5

8714.19.20 - - - For cycles of subheadings nos. 8711.20.20, 8711.30.00, 8711.40.00, 8711.50.00, 8711.90.20

15

Table 3: imported products exempt from VaT in Cambodia

HS classification Product description

0101.11.00; 0102.10.00; 0103.10.00;

0104.10.10; 0104.20.10; 0105.11.10;

0105.12.10; 0105.19.10; 0105.19.30;

0105.92.10; 0105.93.10; 0106.00.10;

0511.10.00; 0701.10.00

animal species

1005.10.00; 1006.11.00; 1008.30.00;

12.04; 12.05; 12.06;

1207.20.00; 1207.30.00; 1207.40.00;

1207.50.00; 1207.60.00; 1207.91.00;

12.09; 50.01

Seeds

23.08; 23.09 except 2309.10.10 and 2309.10.90animal feedstuff and supplementary feed

100 WTo BiSd 2003


Table 4: Products Banned from importation into Cambodia

a. list of pesticides banned from use in the Kingdom of Cambodiano. HS Code Common name Use

1. 1,2-dibromo-3-chloropropane

[dBCP] neM

2. 2.4.5 T HeB3. aldicarb(e) inS-S4. aldrin(e) [HHdn, for pure material] BodUP5. 28048000 arsenic compound rdT6. BHC/ HCH [666,hexachlor(an)] inS7. 28371900 calcium cyanide FM

8. 29021900 camphechlor [Polychlorcamphene,

toxaphene]BodUP

9. captafol [difolatan] Fn 10. chlor(o)dimeform(e) [Chlorphenamidine] BodUP11. chlordane inS12. chlorfenvinphos [CVP] inS13. chlormephos inS14. chlorphenamidine BodUP15. chlorthiophos BodUP16. coumaphos aC,MT17. crimidine rdT18. cyanthoate inS19. cycloheximide Fn

20. cyhexatin[tricyclohexyltin

hydroxide]aC

21. 29036200 ddT [zeidane, dicophane] inS22. demephion-o and S inS23. demephion-S [merkaptofos teolery] BodUP24. demeton-o and-S inS25. demeton-S BodUP26. dieldrin(e) [Heod] inS27. dimefox inS28. dinoseb(e) [dnBP] HeB29. disulfoton [ethylthiodemeton, M-74] inS30. 29209000 endosulfan inS31. endrin(e) [nendrin] BodUP32. ePn inS33. eSP [oxydeprofos] BodUP34. ethoprop [ethoprophos] inS-S35. ethylthiometon 36. fenamiphos (phe-) 37. fenophosphon 38. fensulfothion 39. fluoroacetamide 40. fonofos 41. fosthietan 42. heptachlor(e)

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a. list of pesticides banned from use in the Kingdom of Cambodiano. HS Code Common name Use43. isodrin [isomer of aldrine]44. leptophos [MBCP]45. MBCP Herbicide 46. mephosf(ph)olan 47. 37079000 mercuric compound 48. 29201000 methyl parathion [metafos]49. monocrotophos 50. paraquat 51. parathion [thiofos]52. parathion-ethyl 53. phenamiphos

54. 29310090phenylmercury acetate

55. phorate [timet ]56. phos(ph)folan 57. 29241000 phosphamidon 58. prothoate 59. red squill [scilliroside]60. schradan(e) 61. 28261100 sodium fluoroacetate 62. sulfotep(p) 63. TePP [ethyl pyrophosphate]64. terbufos

65. terpene polychlorinates

[polychloroterpenes]

66. thionazin(e) 67. trichloronat(e)

legend:

aC : acaricide aP: aphicide BTS: Bacteriostat (soil) BodUP: active ingredient believed to be obsolete or discontinued for use as pesticide dFl: defoliantFn: Fungicide, other than for seed treatment FM: Fumigant FST: Fungicide for Seed Treatment HeB: Herbicide inS: insecticide

ia.: extremely hazardous (<20mgkg) ib.: Highly hazardous (20-200mgkg) ii.: Moderately hazardous (200-2000mgkg) iii.: Slightly hazardous (>2000mgkg) igr: insect growth regulatorMl: Mollusscicide MT: Miticide neM: nematicide o: Pesticide unlikely to present acute hazard in normal use Pgr: Plant growth regulatorrdT: rodenticide

gF: gaseous or volatile fumigants not classified under the WHo recommended classifi cation of pesticides by hazardlV: larvicide-S: apply to soil: not use with HeB or Pgr gF: gaseous or volatile fumigants not classified under the WHo recommended classification of pesticides by hazard; [....]-others equivalent common names.

102 WTo BiSd 2003


B. list of narcotics, Psychotropic Substances and Their Precursors Banned from import into Cambodia

no. HS –Code description1. 1211.90.10 - - of a kind used in pharmacy

2. 1211.90.20 - - Cannabis

3. 1211.90.30 - - Coca

4. 1301.90.30 - - Cannabis resin

5. 1302.11.00 - - opium.

6. 1302.19.10 - - - extracts and dyes of cannabis

7. 1302.39.10 - - - Modified

8. 2921.11.00 - - Methylamine, di- or trimethylamine and their salts

9. 2921.12.00 - - diethylamine and its salts

10. 2921.19.00 - - other

11. 2921.21.00 - - ethylenediamine and its salts

12. 2921.22.00 - - Hexamethylenediamine and its salts

13. 2921.29.00 - - other

14. 2921.30.00 - Cyclanic, cyclenic or cycloterpenic mono- or polyamines, and their derivatives; salts thereof

15. 2921.41.00 - - aniline and its salts

16. 2921.42.00 - - aniline derivatives and their salts

17. 2921.43.00 - -Toluidines and their derivatives; salts thereof

18. 2921.44.00 - - diphenylamine and its derivatives; salts thereof

19. (beta-naphthylamine) and their derivatives; salts thereof

20. 2921.49.00 - - other

21. 2921.51.00 - - o-, m-, p-Phenylenediamine, diaminotoluenes, and their derivatives salts thereof

22. 2921.59.00 - - other

23. 2922.11.00 - - Monoethanolamine and its salts

24. 2922.12.00 - - diethanolamine and its salts

25. 2922.13.00 - -Triethanolamine and its salts

26. 2922.19.00 - - other

27. 2922.21.00 - - aminohydroxynaphthalene sulphonic acids and their salts

28. 2922.22.00 - - anisidines, dianisidines, phenetidines, and their salts

29. 2922.29.00 - - other

30. 2922.30.00

- amino-aldehydes, amino-ketones and amino-quinones , other than those containing more than one kind of oxygen function; salts thereof - amino-acids and their esters, other than those containing more than one kind of oxygen function; salts thereof :

31. 2922.41.00 - - lysine and its esters; salts thereof

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no. HS –Code description32. 2922.42.10 - - - glutamic acid

33. 2922.42.20 - - - Monosodium glutamate

34. 2922.42.90 - - - other

35. 2922.43.00 - - anthranilic acid and its salts

36. 2922.49.00 - - other

37. 2922.50.00 - amino-alcohol-phenols,amino-acid-phenols and other amino-compounds with oxygen function

38. 2924.10.00 - acyclic amides (including acyclic carbamates) and their derivatives; salts thereof

39. 2924.21.10 - - - Parsethoxyphenyl urea (dulcin)

40. 2924.21.90 - - - other

41. 2924.22.00 - - 2-acetamidobenzoic acid

42. 2924.29.00 - - other

43. 2925.11.00 - - Saccharin and its salts

44. 2925.19.10 - - - glutethimides

45. 2925.19.90 - - - other

46. 2925.20.10 - - Metformin, phenformin and cemetidines; its salts and derivatives

47. 2925.20.20 - - ethylene imine, propylene imine

48. 2925.20.90 - - other

49. 2926.10.00 - acrylonitrile

50. 2926.20.00 - 1- Cyanoguanidine (dicyandiamide)

51. 2926.90.00 - other

52. 2927.00.00 diazo-, azo- or azoxy-compounds.

53. 2932.11.00 - -Tetrahydrofuran

54. 2932.12.00 - - 2-Furaldehyde (furfuraldehyde)

55. 2932.13.00 - - Furfuryl alcohol and tetrahydrofurfuryl alcohol

56. 2932.19.00 - - other

57. 2932.21.00 - - Coumarin, methylcoumarins and ethylcoumarins

58. 2932.29.00 - - other lactones

59. 2932.91.00 - - isosafrols

60. 2932.92.00 - - 1-(1,3-Benzodioxol-5-yl )propan-2-one

61. 2932.93.00 - - Piperonal

62. 2932.94.00 - - Safrole

63. 2932.99.00 - - other

64. 2933.11.00 - - Phenazone (antipyrin) and its derivatives

65. 2933.19.00 - - other

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no. HS –Code description66. 2933.21.00 - - Hydantoin,and its derivatives

67. 2933.29.00 - - other

68. 2933.31.00 - - Pyridine and its salts

69. 2933.32.00 - - Piperidine and its salts

70. 2933.39.10 - - - Chlorpheniramine and isoniazid

71. 2933.39.90 - - - other

72. 2933.40.00 - Compounds containing a quinoline or isoquinoline ring - system (whether or not hydrogenated), not further fused

73. 2933.51.00 - - Malonylurea (barbituric acid) and its derivatives; salts thereof

74. 2933.59.00 - - other

75. 2933.61.00 - - Melamine

76. 2933.69.00 - - other

77. 2933.71.00 - - 6-Hexanelactam (epsilon-caprolactam)

78. 2933.79.00 - - other lactams

79. 2933.90.10 - - Mebendazole and Parbendazole

80. 2933.90.90 - - other

81. 2934.10.00 - Compounds containing an unfused thiazole ring (whether or not hydrogenated) in the structure

82. 2934.20.00 - Compounds containing a benzothiazole ring-system (whether or not hydrogenated), not further fused

83. 2934.30.00 - Compounds containing a phenothiazine ring-system (whether or not hydrogenated), not further fused

84. 2934.90.00 - other

85. 2939.10.00 - alkaloids of opium and their derivatives; salts thereof

86. 2939.21.00 - - Quinine and its salts

87. 2939.29.00 - - other

88. 2939.30.00 - Caffeine and its salts

89. 2939.41.00 - - ephedrines and its salts

90. 2939.42.00 - - Pseudophedrine (inn) and its salts

91. 2939.49.00 - - other

92. 2939.50.00 - Theophylline and aminophylline(theophylline - ethylenediamine) and their derivatives; salts thereof

93. 2939.61.00 - - ergometrine (inn) and its salts

94. 2939.62.00 - - ergotamine (inn) and its salts

95. 2939.63.00 - - lysergic acid and its salts

96. 2939.69.00 - - other

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accession


no. HS –Code description97. 2939 70.10 - - nicotine sulphate

98. 2939 70.90 - - other

99. 2939.90.00 - other

C- right Hand drive Vehicles

Table 5: goods subject to import licensing

HS Codes description government Body in charge of import licensing

300110, 300120, 300190, 300210, 300210, 300230, 300290, 300310, 300320, 300330, 300340, 300390, 300410, 300420, 300430, 300440, 300450, 300490, 300510, 300590, 300610, 300620, 300630, 300640, 300650, 300660

Pharmaceuticals and medical material

Ministry of Health, department of drugs and Food

310100, 310210, 310220, 310230, 310240, 310240, 310250, 310260, 310270, 310280, 310290, 310310, 310320, 310390, 310410, 310420, 310430, 310490, 310510, 310520, 310530, 310540, 310550, 310560, 310590, 380810, 380820, 380830, 380840, 380890

agricultural inputs

Ministry of agriculture, Forestry and Fishery (MaFF), department of agricultural legislation

36; 93 Weapons, explosives and ammunition

Ministry of national defense

71.06; 71.08; 71.18gold, silver, precious stones and articles thereof

national Bank of Cambodia

88; 89

Vehicles, aircraft and parts, ships and boats, and other machinery for military purposes

Ministry of national defense

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Table 6: imports subject to minimum customs value

HS Code Product description1 1511.90.00 Cooking oil2 0713. green bean3 2401.20.90 leaf tobacco strips4 2401.30.00 C-Tobacco slice5 2403.10.90 Cut tobacco6 2710.00.21 to 2710.00.27 gasoline ( e.a )7 2710.00.31 gasoline ( JeT a1 )

8 2710.00.41 aviation turbine fuel having of flashpoint of 23oC or over

9 2710.00.42 lamps kerosen10 2710.00.71 to 2710.00.73 gas oils11 2710.00.79 other of gas oils12 2710.00.83 lubriating oil13 2711.11.00 natural gas14 2806.10.00 Hydrochloric acid15 2807.10.00 Sulfuric acid16 2922.42.20 Monosodium glutamate17 4802.52.00 Paper in roll ( 50 gSM to 70 gSM )18 4802.53.00 Paper in roll ( more than 150 gSM )19 6309.00.00 Used Clothes20 6908.90.20 Tile ( for China origine only )21 7208.10.00 to 7208.90.00 Flat-rolled product of iron or non-alloy steel22 7209.15.00 to 7209.90.00 Flat-rolled product of iron or non-alloy steel23 7211.13.00 to 7211.90.90 Flat-rolled product of iron or non-alloy steel

24 7213.10.10 to 7213.99.30 Bars and rods, hot -rolled in irregularly wound coils, of iron or non-allly steel

25 7214.10.10 to 7214.99.30 other bars and rods of iron or non-allly steel26 7215.10.10 to 7215.90.20 other bars and rods of iron or non-allly steel

27 7216.10.10 to 7216.99.20 angles, sharpes and sections of iron or non-alloy steel

28 7303.00.10 to 7303.00.90 Tubes, pipes and hollow profiles, of cast iron

29 7304.10.00 to 7404.90.00 Tubes, pipes and hollow profiles, seamless, of iron or steel

30 7305.11.00 to 7305.90.00 other tubes and pipes 31 7306.10.00 to 7306.90.90 other tubes, pipes and hollow profiles, of iron or steel32 8407.31.90 Used motorcycle engine33 8415.10.10 Used air conditionner34 8418.10.10 Used refrigerator35 8450.11.00 Used washing machine36 8473.30.90 Computer casing with power supply37 8501.61.00 to 8501.64.00 generator38 8502.11.00 to 8502.20.20 generator39 8518.29.00 Used speaker

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HS Code Product description40 8518.50.00 Used amplifier41 8520.33.00 Used radio cassette42 8521.10.00 Used VTr, VCr, VCP,43 8523.29.00 Cement 44 8528.12.00 Used CTV

45 8702.10.10 to 8702.90.00 Motor vehicles for the transport of ten or more persons

46 8703.10.10 to 8703.10.20 Motor cars47 8703.21.20 to 8703.21.30 Motor cars48 8703.22.20 to 8703.22.30 Motor cars49 8703.23.21 to 8703.23.32 Motor cars50 8703.24.21 to 8703.24.32 Motor cars51 8703.31.21 to 8703.31.32 Motor cars52 8703.32.21 to 8703.32.32 Motor cars53 8703.33.21 to 8703.90.12 Motor cars54 8704.10.00 to 8704.90.00 Motor vehicles for the transport of goods

55 8708.29.13 Used door for motor vehicles origine from Japan, eU and the norht american

56 8708.29.92 Used dashboard for motor vehicles origine from Japan, eU and the norht american

57 8708.29.93 Used bumper for motor vehicles origine from Japan, eU and the norht american

58 8711.10.00 Used motorcycles59 8711.20.10 to 8711.30.00 Used motorcycles60 8711.90.10 to 8711.90.20 Used motorcycles61 8712.00.00 Used Bicycles62 8714.19.10 to 8714.19.20 Used parts and accessories of motorcycles ( Saddle )63 8714.19.10 Used parts and accessories of motorcycles

64 9401.20.00 Used seats for motor vehicles origine from Japan, eU and the north american

64 9503.90.90 Used Toys

HS code based on Customs Tariff of Cambodia 2001

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Table 8: items subject to export taxes

HS Heading description of goods export Tariff(% advalorem)

01.0201.03 Pure bred breeding bovine animals and swine 10

03.01, 03.0203.03, 03.0403.05

live fish, prepared fish and fish products 10

03.0603.07 live crustaceans and molluscs and products thereof 10

12.11,13.0113.02

Cannabis, Cannabis resin, extracts and dyes, coca, opium* 50

29.05.50 Halogenated, sulphonated, nitrated or nitrated derivatives of a cyclic alcohol* 50

29.26 nitrile-function compounds* 5040.0140.04

natural rubber in primary forms or in plates, sheets or strips and rubber waste 10

44.02, 44.0344.04, 44.0544.06, 44.07

Unprocessed and semi-processed wood; wood charcoal 10

44.08.10.0044.09

Sawn and shaped wood. Veneer sheets and sheets for plywood; strips for flooring 5

* Categories included for the sake of formal completeness. The products in these groups require a licence in order to be exported. The royal government has in fact never issued any such licenses.

Table 9: export restrictions maintained by Cambodia

HS Code Product description Measure responsible

agencygaTT/WTo justification

10.06 rice Quota/nal Ministry of Commerce

gaTT article Xi:2(a)eliminated on 26 July 2001

1211.90.20;1211.90.30;1301.90.30;1302.11.00;1302.19.10;29.05; 29.21-29.26; 29.32-29.34; 29.39; 2909.11; 2914.11; 2915.24; 2915.90; 2939.61; 2902.90; 2914.31; 2912.21; 30.02-30.06

Pharmaceuticals and medical material, narcotic drugs and poisons

Permit; Prohibition for narcotic drugs and poisons

Ministry of Health

gaTT article XX(b)

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44.01-44.04 round and sawn logs

Prohibition Council of Ministers

gaTT article XX(g)

44.05-44.21 Wood products Quota/nal Council of Ministers, MaFF, Ministry of Commerce

gaTT article XX(g)

93.01-93.06 Weapons, explosives and ammunition

nal Ministry of national defence

gaTT article XXi(b)(ii)

87.10 Vehicles and machinery for military purposes

nal Ministry of national defence

gaTT article XXi(b)(ii)

97.05; 97.06 antiques more than 100 years old

Prohibition Ministry of Culture and Fine arts

gaTT article XX(f)

nal: non-automatic licensing.

DecisionoftheMinisterialConferenceon11September2003(ExtractfromWT/MIN(03)/18)

The Ministerial Conference,

Havingregardto paragraph 2 of article Xii and paragraph 1 of article iX of the Marrakesh agreement establishing the World Trade organization (the “WTo agreement”), and the decision-Making Procedures under articles iX and Xii of the WTo agreement agreed by the general Council (WT/l/93),

Takingnoteof the application of the Kingdom of Cambodia for accession to the WTo agreement dated 19 october 1994,

Noting the results of the negotiations directed toward the establishment of the terms of accession of the Kingdom of Cambodia to the WTo agreement and having prepared a Protocol on the accession of the Kingdom of Cambodia,

Decides as follows:

1. The Kingdom of Cambodia may accede to the WTo agreement on the terms and conditions set out in the Protocol annexed to this decision.1

1 See under section “legal instruments”

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aCCeSSion oF nePal

ReportoftheWorkingPartyAdoptedbytheMinisterialConferenceon11September2003

(WT/ACC/NPL/16)

introduction

1. at its meeting on 21-22 June 1989, the Council of representatives established the Working Party to examine the application of His Majesty’s government of nepal (HMg/n) for accession to the general agreement on Tariffs and Trade (gaTT 1947) under article XXXiii, and to submit to the Council recommendations which might include a draft Protocol of accession. in a communication dated 17 February 1997, HMg/n applied for accession to the World Trade organization (WTo). Having regard to the decision adopted by the general Council on 31 January 1995 (WT/gC/M/1), the existing Working Party on the accession of nepal to the gaTT 1947 continued as a WTo accession Working Party with the mandate to examine the application of HMg/n to accede to the World Trade organization under article Xii, and to submit to the general Council recommendations which may include a draft Protocol of accession. The terms of reference and the membership of the Working Party are reproduced in document WT/aCC/nPl/4/rev.7.

2. The Working Party met on 22 May 2000, 12 September 2002 and 15 august 2003. at its meeting on 15 october 2002, the general Council took note that H.e. Mr. P.-l. girard (Switzerland) had been appointed Chairman of the Working Party in replacement of H.e. Mr. r. Farrell (new zealand) who had left geneva and was no longer available.

documentation provided

3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the Foreign Trade regime of nepal (document WT/aCC/nPl/2 and Corr.1 and addenda), the questions submitted by Members on the foreign trade regime of nepal, together with the replies thereto, and other information provided by the authorities of nepal (WT/aCC/nPl/3 and Corr.1 and addenda; WT/aCC/nPl/5; WT/aCC/nPl/6; WT/aCC/nPl/7; WT/aCC/nPl/9; WT/aCC/nPl/10 and revision 1; WT/aCC/nPl/11; WT/aCC/nPl/12; WT/aCC/nPl/13; WT/aCC/nPl/14; and WT/aCC/nPl/15), including the legislative texts and other documentation listed in annex i. The legislative action Plan of nepal aimed at the implementation of the WTo agreements circulated in document WT/aCC/nPl/10/rev.1 is reproduced in annex ii.

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introductory statements

4. The representative of nepal said that the Kingdom of nepal, a least developed land-locked mountainous country with a small but open economy, had been facing the problems of poverty, marginalization, weak institutional capacities and financial and technical constraints. The population of the country was estimated to be 23 million people. Per capita income was US$240, with 38 per cent of the population living with less than one dollar a day, and 82 per cent living with less than two dollars a day. agriculture which was dependent on the vagaries of the monsoon was the main source of income and employment. agriculture accounted for around 41 per cent of gdP and more than 80 per cent of employment. rice was the major cereal product followed by maize, wheat and millet. Woollen carpets and ready made clothing were the leading export items constituting about 85 per cent of total overseas exports. other important industrial products were food, beverage and cement production. Tourism contributes about 12 per cent of the total foreign exchange. High transit costs, absence of basic infrastructures, dependence on traditional technologies, etc. were some of nepal’s structural limitations. due to the fact that total exports met less than half nepal’s import requirements, donor support was essential for the country’s economic survival.

5. The representative of nepal said that notwithstanding a difficult economic and political environment and internal instability and strife, nepal had sought to achieve a peaceful settlement of the internal problem and to systematically reform and open its economy. HMg/n had liberalized the economy unilaterally over the years because of the conviction that economic reform and trade liberalization would attract investments, promote development and, contribute to generate productive employment and alleviate poverty, in a general framework of equity, participation and market based efficiency. limited physical, material and human resources had constrained nepal’s capacity to reap the benefits of globalization and liberalization. in order to pursue the accession process effectively, nepal had very important technical assistance needs including capacity building. accession to WTo was an essential component of the country’s integration into the world economy. The commitments to be undertaken by nepal in the accession negotiations should be consistent with the capacity of a land-locked ldC and, in accordance with the decision adopted by WTo general Council on 10 december 2002 with respect to the accession of ldCs, taking into account the important development, financial and trade needs of nepal.

6. The representative of nepal noted that trade was not an end itself. it was a means to develop the underdeveloped economies, ensure the flows of knowledge, technology and resources with the aim of improving the global standards of living of all mankind, including in particular the poorer segments of mankind. globalization should pave the way towards a new era of humanity and civilization with a fair and equitable distribution of welfare.

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7. recalling the decisions adopted at the Fourth WTo Ministerial Conference and at the Third Un Conference on ldCs, the representative of nepal noted that as an ldC nepal would need transitional arrangements in order to bring its foreign trade regime into full consistency with the WTo agreements on Customs Valuation, TBT, SPS and TriPS. HMg/n planned to accomplish this task in accordance with the legislative action Plan submitted to the WTo.

8. Members of the WTo welcomed nepal’s application to accede to the World Trade organisation. They expressed the view that WTo membership would be important for nepal’s development and integration into the world trading system and would also constitute a major step forward in the WTo evolution to achieving the goal of universality and representation of the interests of all trading nations. in expressing appreciation for the significant efforts already undertaken by nepal to achieve compliance with WTo rules and principles, they noted that further work was needed in order to implement some important WTo agreements. WTo Members pledged to work constructively with nepal in accomplishing this objective, and offered to provide technical assistance to facilitate nepal’s accession. WTo Members looked forward to nepal’s early accession on appropriate terms including transitional arrangements to enact and implement the legislative modifications required. recalling nepal’s status as a least-developed country, some Members acknowledged nepal’s commitment to the principles of the multilateral trading system, economic reform and market policies. They noted that nepal was a key member of the South asian association for regional Cooperation (SaarC), whose population constituted almost one fourth of humanity and of South asian Preferential Trading arrangement (SaPTa). in their view, economic, intellectual and moral arguments, including the credibility of the WTo, justified according special and differential treatment similar to that enjoyed by other ldCs in the existing and forthcoming WTo agreements when agreeing on nepal’s terms of accession.

9. The Working Party reviewed the economic policies and foreign trade regime of nepal and the possible terms of a draft Protocol of accession to the WTo. The views expressed by members of the Working Party on the various aspects of nepal’s foreign trade regime, and on the terms and conditions of nepal’s accession to the WTo are summarized below in paragraphs 10 to 155.

eConoMiC PoliCieS

Monetary and fiscal policy

10. The representative of nepal said that the monetary policy of nepal was geared towards managing liquidity so as to achieve the domestic price stability, and to improve the balance of payments situation of the country. accordingly, broad money and narrow money aggregates were targeted to increase in line with the predetermined benchmarks. The Central Bank (nepal rastra Bank, nrB) had given up exercising direct instruments of monetary control since the early 1990s and has

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resorted to indirect instruments only. in this context, open market operations had become the main instrument of monetary control in nepal. Treasury bills are the main instruments used in such operations. nrB bonds were also used as open market instruments in the past. Besides the open market operations, the bank rate and the cash reserve ratio are the other additional instruments deployed by the Central Bank for monetary control.

11. The representative of nepal said that since the start of the 1990s the government had pursued an ambitious tax reform programme with the aim of raising public savings, broadening the tax net and to improve the overall efficiency and fairness of the tax system. reforms had been undertaken to broaden the tax base, lower income tax rates, and to simplify the rate structure across a whole range of taxes. The fiscal policy of the government was to pursue the following major objectives: (i) reduction of unproductive expenditure in the public sector; (ii) reform of the income tax structure by reducing high rates and broadening the tax base; (iii) reduction of net domestic borrowing to 0.5 per cent of gdP; and (iv) streamlining of bureaucracy.

Foreign exchange and payments

12. The representative of nepal said that the Central Bank published exchange rates for its internal purpose and the market rate was determined by the foreign exchange market. import licenses to obtain foreign currency for specific goods are no longer required. The present system facilitates 100 per cent of capital transfer in the form of foreign investment and subsequent repatriation of profit in foreign currencies. Foreign currency bank accounts can be freely opened. in case of the emergence of balance of payments (BoP) problems, the government may resort to restrictive measures. He added that the nepalese rupee has been pegged to the indian rupee at the rate of nrs. 1.6 per indian rupee since February 1993. The current exchange rate is about 76.00 nepalese rupees per US dollar (June 2003). Several amendments had been made in the Foreign exchange (regularisation) act, 2019 (1962) in order to reflect the liberalisation policy. Money changers had been authorized to operate in the main cities of nepal. Moreover, the government had declared its commitment to make nepal an international financial services centre and had formulated an act in this regard. nepal had also entered into negotiations with respect to the Poverty reduction and growth Facility (PrgF) with the international Monetary Fund.

13. The representative of nepal said that the current international payments regime consists of different provisions for payments made through convertible currency and non-convertible indian rupees. For countries other than india, payment was made through convertible currency, mainly US dollars. Selected commodities could be imported from india through US dollar payments as well. nepal’s exchange rate system is presently free of restrictions on the making of payments and transfers for current international transactions except for restrictions on payments for personal travel. However, the necessary foreign exchange will be made available (either through commercial banks or the Central Bank) upon the production of the required

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documentary evidence for all bonafide transactions. all exporters are required to bring the export payment to nepal within 6 months. However, the exporters could retain up to 100 per cent of the export proceeds for themselves through the opening of a foreign currency account with the local commercial banks. There was no time limit for such retention. To import goods from india, the letter of Credit could be opened in indian rupees in favour of the exporter. The nepalese bank could also, if requested by the importer, make direct payment to the exporter, in indian rupees, through an indian Bank. The importer could receive indian rupees from the nepalese bank to make direct payment to the indian exporter. nepal had accepted article Viii of the articles of agreement of the iMF. However, nepal may restrict the quantity or value of imports in order to safeguard its external financial position and its balance of payments. nepal was also a member of the asian Clearing Union (aCU). Trade transactions among aCU members were cleared through the asian Currency Unit. as far as capital transaction was concerned, the Ban on investments in Foreign Countries act, 1964 prohibits any form of investment including the purchase of property, bank deposits, investments in shares and bonds by nepalese citizens in foreign countries. The repatriation of capital investments and profits by foreigners was allowed in accordance with the Foreign investment and Technology Transfer act 1992.

investment regime

14. The representative of nepal said that a major objective of national economic policy was to promote and encourage a transparent and fair business environment for both domestic and foreign investment, and to increase the role of the private sector in nepal’s development process. For this purpose, a liberal industrial policy was adopted in 1992 consisting of the industrial enterprises act, 1992, the Foreign investment and Technology Transfer act, 1992, and the one Window Policy of 1992. Sections 2, 3 and the annex of the Foreign investment and Technology Transfer act, 1992 are relevant for all foreign investment and cover the major criteria for the permission of foreign investment. Under this policy, a high level committee had been formed with the director general of the department of industries as its Coordinator in order to coordinate the activities of various agencies related to industrial enterprises. The major thrust of these acts and policies lies in their openness with emphasis on market-driven strategies, and the dominant role of private initiative and enterprise. The government acts as a facilitator to the private sector and concentrates its efforts on the development of the infrastructure required, as well as in guaranteeing a stable macroeconomic environment. The policies and acts mentioned above apply to all sectors of economic activities within the country. The industrial Policy of 1992 identified foreign investment promotion as an important strategy in achieving the objectives of increasing industrial production, meeting the basic needs of the people, creating maximum employment opportunities, and paving the way for improvement in the balance of payments situation. Foreign investment was expected to supplement domestic private investment through foreign capital flows, technology transfer, and providing access to international markets. The first amendment of the Foreign

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investment and Technology Transfer act (FiTTa), 1992 in 1996 had opened further avenues for investors, and had also simplified the administrative procedures. Some of the salient features of the industrial enterprises act, 1992 and of the Foreign investment and Technology Transfer act, 1992 (as amended) were as follows: foreign investment requires an approval from the department of industry. a person desiring to avail the foreign investment or technology transfer shall be required to make an application to the department. it grants permission directly in the case of an industry with fixed assets up to 1 billion rupees and in accordance with the decision of the industrial Promotion Board in the case of an industry with fixed assets of more than one billion rupees within 30 days from the date of application; foreign investors were allowed to hold 100 per cent ownership in industries; foreign investment was open in every sector of economic activities, except for very few sectors such as cottage industries, arms and ammunitions, security printing, currencies and coinage, retail business, travel and trekking agencies, consultancy services, etc. (specified in an annex of the Foreign investment and Technology Transfer act, 1992); technology transfer was encouraged in all public enterprises of industries; the law prohibits the nationalization of any private sector industries; the government does not intervene in fixing the prices of industrial products in the private sector industries. The statutory provision of FiTTa guarantees full repatriation of the amount received from the sale of equity, profits, or dividends and interest on foreign loans, and the repatriation of the amount received under an agreement for the transfer of technology. Foreign investors were granted a business visa as long as the investment was retained. a resident visa would be provided for a foreign investor, who at a time makes an investment in excess of US$100,000 or equivalent and retains it. nepal was a member of the Multilateral investment guarantee agency (Miga), had signed reciprocal encouragement and Protection of investment agreements with France, germany, the United Kingdom and Mauritius and would conclude such agreements with a number of other countries. agreements avoiding double taxation were effective with india, norway, Thailand, Sri lanka, Mauritius, austria, Pakistan, China, and republic of Korea.

15. in response to questions concerning the need of approval for industrial ventures, the representative of nepal said that in accordance with Section 3 of the Foreign investment and Technology Transfer act, 1992, approval from the department of industries was required for all foreign investment. as provided by the industrial enterprises act, 1992, permission for domestic as well as foreign investment was required only for industries producing explosives, including arms, ammunition and gun powder, security printing, bank notes and coin industries; cigarette, bidi, cigar, chewing tobacco, khaini industries and industries producing goods of a similar nature utilizing tobacco as the basic raw material and alcohol or beer producing industries. The specific requirements to get the permission were not detailed in either of these acts. He said that the sectors listed below were not open for foreign investment. Most of these sectors were reserved for nationals, mainly in order to promote the activities of small entrepreneurs who generally use indigenous skills, resources and technology.

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Some sectors were restricted for national security reasons: cottage industry; personal service business (business such as hair cutting, beauty parlour, tailoring, driving training, etc.); arms and ammunitions industries; explosives, gunpowder; industries related to radioactive materials; real estate (excluding construction industries); Motion picture industries (produced in national languages and the language of the nation); Security printing; Currency and coinage business; retail business; Travel agency; Trekking agency; Water rafting; Pony trekking; Horse riding; Cigarette, bidi, alcohol (excluding those exporting for more than 90 per cent); internal courier services; atomic energy; Tourist lodging; Poultry farming; Fisheries; Bee keeping; Consultancy services such as management, accounting, engineering and legal services etc. approval from the government was required for foreign investment in other areas. interested foreign investors should apply in writing, in the prescribed format, to the department of industry or department of Small and Cottage industry or any other office as prescribed by the government. The decision on the application shall be communicated to the applicant within 30 days from filing of the application.

16. The representative of nepal also indicated that the recommendations made in the studies conducted by FiaS had been incorporated in the amendments of industrial enterprises act, 1992 and the Foreign investment and Technology Transfer act, 1992.

State ownership and privatization

17. The representative of nepal said that nepal had completed the privatization of a number of previously government owned enterprises listed below. The methods of privatization and other information are given below. The net (book value) worth of the remaining state-owned enterprises account for about 15 per cent of nepal’s gdP.

Table 1: Privatization of Previously government-owned enterprises

S.no name of the CompanyYear of Priva-

tization

Method of Priva-

tization

Sales Proceeds

(rs. ‘000)1

Proportionate Share

Mgt emp Public

1. Bhrikuti Paper Mills (BPM)

oct. 1992

asset and business sale

229,800 70 5 25

2. Harisidhi Brick and Tile Factory (HBTF)

oct. 1992


226,900 72 5 23

3. Bansbari leather and Shoe Factory

Mar. 1992


22,400 75 5 25

4. nepal Film development Company (nFdC)

nov. 1993

Share sale 64,662 51 5 44

5. Balaju Textile industry ltd. (BTi)

dec. 1993

Share sale 17,716 70 5 25

6. raw Hide Collection and development Corporation ltd. (rHCdC)

dec. 1993

Share sale 3,990 -- -- 100

1 it includes the price of management share only.

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S.no name of the CompanyYear of Priva-

tization

Method of Priva-

tization

Sales Proceeds

(rs. ‘000)1

Proportionate Share

Mgt emp Public

7. nepal Bitumen and Barrel Udhyog ltd. (nBBU)

Jan. (1994)

Share sale 11,640 65 5 30

8. nepal lube oil ltd. (nlo)

Jan. 1994

Share sale 30,424 40 5 332

9. nepal Jute Trade and development Company

1993 liquidation liquidation -- -- --

10. Tobacco development Company

1994 liquidation liquidation -- -- --

11. nepal Foundry industry (nFi)

Mar. 1996

Share sale 14,473 51 5 44

12. Shri raghupati Jute Mills (SrJM)

aug. 1996

Share sale 82,204 65 5 30

13. Biratnagar Jute Mills (BJM)3

dec. 1996

Management contract

Business contract

-- -- --

14. nepal Bank ltd. (nBl)4 Mar. 1997

Share sale 125,140 -- 5 545

15. agriculture Tools Factory (aTF)

May 1997

Share sale 95,100 65 5 30

16. Bhaktapur Bricks Factory (BBF)

aug. 1997

lease 20,300 (10 years,

lease)

-- -- 100 HM

gn

18. The representative of nepal said that Section 6 of the Privatization act, 1992 states that when the government intends to privatize any government Corporation, it shall publish a notice in respect of the privatization of such a government Corporation in the nepal gazette. The act makes it mandatory for the government to initiate the privatization process only after the publication of a notice in the gazette. Under Section 7 of the Privatization act, 1992, the government may form a team of experts for the evaluation of the Corporation in this respect. Section 8 of the same act has given alternatives of the privatization process to the government, i.e., converting shares or selling intact to private buyers or giving on lease etc. in accordance with Section 9 of the same act the government must call for public tender for privatization by publishing a notice which has to be in accordance with international practice. Section 10 of the same act describes the basis for the evaluation of tenders. The privatization committee evaluates the proposals received from private parties accordingly. in accordance with Section 11(4) of the same act, the terms and conditions mentioned in the agreement in respect to privatization must be published to inform the public. The

2 rest of the shares are in the name of other corporations.3 BJM is a semi-government enterprise in which private sector has majority shares. The decision to

contracting out was taken by the company’s board and all the procedures were taken accordingly.4 in this bank the government had majority shares. The government decided to sell some of its shares

in the market, so that the private sector could become the majority shareholder. So it floated 10 per cent of the shares in the share market. now the government is a minority shareholder i.e. it holds only 39 per cent of the total shares.

5 HMgn owns 39 per cent shares.

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parties concerned may ask for attested copies of relevant documents under number 17 of the Chapter on document Scrutiny of the Country Code (Muluki ain). likewise, article 16 of the Constitution of the Kingdom of nepal provides the right to seek and get information in respect of matters of public importance. nepal is also ready to adopt a better mechanism in regard to transparency through proper legislation. The Privatization act, 1992 was silent on the mechanism of review or appeal regarding any unsuccessful tenders by investors whether national or foreign. nevertheless, the unsuccessful tender participant, in principle, may approach the Court of appeal under the administration of Justice act, 1991.

Pricing policies

19. The representative of nepal said that in accordance with the Foreign investment and one Window Policy 1992, the government did not intervene in fixing the prices of industrial products either by the private sector industries or State-owned enterprises except for necessary products as defined by the acts. The products concerned were petroleum products (HS codes 2710, 2711) and salt (HS code 2501), however in the interest of consumer protection price controls could be applied to other products.

20. The representative of nepal stated that in the application of price controls now or in the future, nepal would apply such measures in a WTo-consistent fashion, and take account of the interests of exporting WTo Members as provided for in article iii:9 of the gaTT 1994, and in article Viii of the general agreement on Trade in Services (gaTS). He also confirmed that nepal published the list of goods and services subject to State control and any changes in its official gazette and would continue to do so after accession. The Working Party took note of these commitments.

Competition policy

21. The representative of nepal said that nepal did not at present have a competition law, but nepal was seeking assistance to draft legislation to ensure fair competition in various business activities in due course. The respective legislation would be consistent with the WTo agreements. The legislative action Plan circulated in document WT/aCC/nPl/10/rev.1 which is reproduced in annex ii of this report indicates that the Ministry of industry, Commerce and Supplies would prepare a draft Competition Bill by november 2003, the Council of Ministers was expected to endorse the Bill by February 2004 and the expected approval date was July 2004.

FraMeWorK For MaKing and enForCing PoliCieS

22. The representative of nepal said that in 1990 a democratic constitution had replaced the Panchayat System. The Constitution of the Kingdom of nepal, 1990 had established the King as the Head of the State and the Prime Minister, responsible to

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the parliament, as the Head of the government, and an independent judiciary. The parliament was a bicameral legislative body, consisting of the lower house, the House of representatives, and the national assembly, the upper house. The executive, legislative, and judicial powers were well defined and separated. The executive power of the Kingdom of nepal was vested with His Majesty the King and the Council of Ministers and the responsibility of issuing general directives, controlling and regulating the administration of the Kingdom of nepal lies in the Council of Ministers. His Majesty the King as the Head of the State appoints the leader of the Party which commands a majority in the House of representatives as Prime Minister and constitutes the Council of Ministers on his recommendation and under his Chairmanship. The Prime Minister and the other ministers in the government are collectively responsible to the Parliament. The other ministers are also individually responsible for the business of their respective ministries to the House of representatives as well as to the Prime Minister. due to the lack of internal security Parliamentary elections were not held in 2002 as scheduled. His Majesty the King had appointed the current Prime Minister under the provisions of the present Constitution. a cease fire reached in February 2003 had suspended hostilities. The current talks with all political entities and groupings were expected to lead to Parliamentary elections being held in the coming period. in the meantime, the government exercised legislative authority in conformity with constitutional provisions by means of ordinances.

23. in accordance with the Constitution, the parliament consists of His Majesty the King and the two Houses of parliament. The House of representatives consists of two hundred and five members elected from one-man election constituency on the basis of one-person-one-vote system through a secret ballot. nepal had adopted the simple plurality or “first past the post” election system under which a candidate receiving the largest number of popular votes in a given constituency is elected. The national assembly consists of sixty members, ten of which are nominated by His Majesty the King from amongst persons of high reputation, and 35 members, including at least three women members, are elected by the House of representatives on the basis of proportional representation by means of the single transferable vote system. Fifteen members are elected from five development regions. The tenure of the members of the House of representative is five years. The tenure of the members of the national assembly, which is a permanent House, is six years and tenure of one third of the members expires every two years.

24. except as otherwise expressly provided in the constitution, the parliament is empowered to enact any law. a bill passed by one house of the parliament is transmitted to the other house as soon as possible and if the receiving house passes it, it is presented to His Majesty the King for his assent. The bill becomes an act upon such assent. The government is empowered to promulgate rules or regulations under a delegated legislative power vested under an act of Parliament. The constitution provides certain specific provisions concerning ratification of, accession to, approval of, and

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acceptance of a treaty. depending on the content, nature, and term of a treaty, a joint sitting of both houses of the parliament or the House of representatives is authorized to ratify or accede to. normally, multilateral treaties concerning trade which require ratification or accession are ratified or acceded to by the House of representatives by a simple majority vote. once treaties are ratified, they are executed at the national and international levels. a treaty may be invoked on a collateral issue, which the courts may have to determine before adjudicating on the rights of the parties. However, the Supreme Court, in case it decides that the provision of an act is inconsistent with the provision of a treaty to which His Majesty’s government is a party, the provision of the treaty in question prevails. Under the nepal Treaties act, 2047 (1990) in case of divergence between the provisions of nepalese law and provisions of the international treaty to which the Kingdom is a party, the provision of the treaty shall apply to the extent of the divergence. Following its ratification by the House of representatives, the WTo agreement would be an international treaty.

25. The judiciary is an independent organ. The powers relating to justice in the kingdom are exercised by the courts and other judicial tribunals in accordance with the provisions of the constitution, the laws of the country, and universally recognized principles of justice. The judiciary comprises three tiered courts consisting of 75 district Courts, 16 appellate Courts, and one Supreme Court. The Chief Justice of the Supreme Court of nepal is appointed by His Majesty the King on the recommendation of the Constitutional Council, a constitutional body composed of the Prime Minister, the Chief Justice, the Speaker of the House of representatives, the Chairman of the national assembly, and the leader of the opposition in the House of representatives as its members. The appointment of other judges of the Supreme Court, appellate Courts, and district Courts is made by His Majesty the King on recommendation of the Judicial Council. in nepal, judges are not part of the civil service and the terms and conditions of their service have been determined by law as required by the constitution. The Supreme Court, the apex of the judicial system, has, inter alia, extraordinary jurisdiction for the enforcement of fundamental rights as provided by the constitution in Part 3 and can issue appropriate orders and writs including the writ of habeas corpus, mandamus, certiorari, prohibition and quo warranto. Moreover, it is also empowered to declare any law or any part thereof either void ab initio or from the date of its decision on the ground of inconsistency with the constitution, because such law imposes an unreasonable restriction on the enjoyment of the fundamental rights of the citizen. Similarly, appellate courts may issue habeas corpus, mandamus writs and injunction orders. nepalese courts are competent to entertain and adjudicate all suits concerning real estate located in nepal and estate matters with respect to assets in nepal and also any other suits, if the defendant is domiciled in nepal or the claim derives from an event that has occurred in nepal or from any act made or done in nepal regarding the defendant’s domicile. if a foreign company has a branch in nepal, it is treated as a domiciled party. a nepalese court may also adjudicate suits concerning transactions made abroad if both the plaintiff and defendant are domiciled in nepal.

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Summons are to be served on defendants domiciled abroad through letters rogatory issued by the courts. no. 34 of adalati Bandobasta (court management) of Muluki ain (Country Code) provides that summons to be served on defendants domiciled in nepal through letter rogatory issued by the foreign courts are satisfactory only if a reciprocal agreement to that effect has been concluded by the government with the foreign state concerned. Muluki ain is the general law of the land and any other specific act may replace the provision of the Muluki ain if a specific act to that effect is made. in addition to the above mentioned courts, there is also a provision in the constitution which stipulates that law may provide for the establishment of special types of courts and tribunals for the purpose of hearing of special types of cases. However, a special court or tribunal may not be constituted for the purpose of hearing a particular case. in practice, there are special permanent tribunals to adjudicate and resolve revenue disputes (revenue Tribunals), labour disputes (labour Court) and disputes concerning dismissal of civil service employees (administrative Court). Pursuant to the arbitration act, 1998, arbitration had become an effective mechanism for settlement of disputes arising out of commercial contracts. nepal was a party to the Convention on the recognition and enforcement of Foreign arbitral awards.

26. Under articles 35 and 41 of the Constitution of the Kingdom of nepal, 1990, and the His Majesty’s government (allocation of Business) regulation 2000, the following Ministries are responsible for making and enforcing the policies affecting foreign trade in goods and services:

(a) The Ministry of industry, Commerce and Supplies6 is principally responsible for making and enforcing policies on trade including foreign trade. The responsibilities of this ministry include: Formulating and enforcing trade policy. Study, research, and survey on internal and international trade. Making policy decisions on import and export trade regime and conducting international trade relations. Formulating policies and setting requirements for public trade enterprises. Preparing and negotiating treaties and agreements relating to foreign trade (and transit), as well as participating in bilateral and multi-lateral intergovernmental trade negotiations. Contact, assistance and coordination with national, regional, international organizations pertaining to trade and transit. Study and survey of different means of carriage of goods in the internal and international trade, and of the management necessary for cheaper carriage, including multi-modal transport schemes. Training to develop capable manpower in the appropriate areas.

6 The Ministry of Commerce, the Ministry of industry and the Ministry of Supplies were merged in the year 2000.

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The department of Commerce deals with technical issues such as the registration of trade firms, and where appropriate, permits licenses or authorization for goods to be imported in or exported from nepal. The Trade Promotion Centre operates as a separate government undertaking to promote foreign trade, particularly overseas trade.

The Ministry is responsible for policies related to foreign investment, promotion thereof and matters relating thereto; promotion of industrial investment; development and transfer of technology; industrial promotion and protection; patent design and trade mark.

The Ministry is responsible for issues related to the policy on supplies of basic needs goods and its implementation; supervision of the market and regulation of policy prices for enterprises under it; regular and balanced supply of consumer goods and necessary consumer goods through these enterprises.

(b) The Ministry of Finance is responsible for activities related to public expenditure, currency; banking, insurance, revenue policy and planning; revenue administration and collection of customs duties and taxes levied by the government from time to time; general price policy for State-owned enterprises; exchange and control of foreign currencies and control of accounts as well as mobilisation of foreign aid.

(c) The Ministry of Culture, Tourism and Civil aviation is responsible for issues related to tourism industry and tourism promotion; trekking, mountaineering; development of air transportation and other tourism trade related service and issues.

(d) The Ministry of labour and Transport Management is responsible for activities related to policy on development of inland and water transport; regulation of transportation and carriage by land and sea including multi-modal transport and trade facilitation. it is also responsible for activities related to labour policy and its implementation; study and research of labour force and labour market, and its use; work permit to foreigners; administration and management of labour.

(e) The Ministry of agriculture and Cooperatives is responsible for activities related to policy on agriculture and agriculture

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production in general; development and improvement of food, cash and industrial crops; agricultural engineering and sophisticated agricultural inputs; agricultural nurseries and development of seeds; development of dairy and dairy products; fishery; marketing and price regulation of basic agricultural products, agricultural inputs, and development of agricultural technology; plant quarantines; food research, and import, sale and distribution of fertilizers and agricultural inputs.

27. The Constitution of nepal provides a unitary form of government. There was no division of authority between central and sub-central or regional governments in nepal. However, the laws of the country provide for the delegation of authority to the local authorities as and when required.

28. The representative of nepal said that the implementation of the WTo agreements would require the preparation of important pieces of legislation. He submitted the action plans circulated in documents WT/aCC/nPl/10/rev.1, 12, 13, 14 and 15 (reproduced in annex ii and Tables 3, 5, 7 and 10) which set up a precise calendar plan aimed at enacting the legislation required to implement the WTo agreements during the period 2003-2006. The representative of nepal said that nepal undertook the commitment that any changes in laws, regulations and practices during the transitional arrangements would not result in a lesser degree of consistency with the provisions of the relevant WTo agreements than existed on the date of accession, and that the scope of application of existing inconsistencies with WTo provisions in those areas would not be allowed to increase.

29. in response to questions concerning the existence of the right to appeal against decisions made by the department of industry and other administrative entities as required by the WTo agreements on import licensing, Customs Valuation, TBT, SPS and TriPS, the representative of nepal said that under article 18 of the industrial enterprise act, 1992 there was a provision of appeal against the decisions taken by department of industry to the industrial Promotion Board. The importer had the right to appeal to the revenue Tribunal over the decision of customs officials in respect to the determination of customs value under Section 37 of Custom act, 1962. nepal was currently examining the possibility of establishing an independent administrative tribunal to review the decision of the customs authority regarding customs valuation. The decisions of the administrative tribunal could be appealed to the revenue Tribunal which should provide prompt review and correction of administrative action relating to customs matters, in accordance with article X:3(b) and (c) of gaTT 1994. The nepalese legislation provides the right to appeal to the affected party concerning decisions of the authorities on matters related to technical barriers to trade, sanitary and phytosanitary measures, import licensing, copyrights, trademarks, patent and design.

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30. a member of the Working Party expressed readiness to provide technical assistance to nepal for the establishment of a system for the review and appeal against administrative decisions in areas covered by specific transitional arrangements and in other areas. The representative of nepal said that nepal would review the legislation on administrative appeals to ensure that a system for review of decisions will be in place by enactment or amendment of appropriate legislation, in some cases new tribunals may be established.

31. The representative of nepal said that upon the date of accession, nepal would establish or designate tribunals or procedures for the prompt review of all administrative actions relating to the implementation of laws, regulations, judicial decisions and administrative rulings of a general application referred to in article X:1 of the gaTT 1994, article Vi of gaTS. The tribunals or procedures would also include actions relating to the implementation of national treatment, conformity assessment, the regulation, control, supply or promotion of a service, including the grant or denial of a licence to provide a service and other matters. The tribunals or procedures responsible for such reviews would be impartial and independent of the agency entrusted with administrative enforcement and shall not have any substantial interest in the outcome of the matter. The review procedure would include the opportunity for appeal, without penalty, by individuals or enterprises affected by any administrative action subject to review. notice of the decision on appeal should be given to the appellant and the reasons for such a decision provided in writing. The Working Party took note of these commitments.

PoliCieS aFFeCTing Trade in goodS

registration requirements

32. in response to questions concerning the requirements necessary for obtaining the registration to engage in business, the representative of nepal said that all companies, national or foreign, have to be registered with the competent authority to engage in business in nepal. This includes export and import activities. limited liability companies, including joint venture agencies, sole proprietor and partnerships, business undertakings for industrial ventures, register at the department of industry. agencies, sole proprietor undertakings and partnership businesses for trading are required to register at the department of Commerce. The nepalese legislation provided different procedures for the registration of a private firm and a company. The Private Firm registration act, 1956 governs the registration of a private firm- defined as any firm, a company or a concern set up by any person – to engage in the business of export or import. The running of a private firm without registration was prohibited. The department of Commerce registers firms engaged in commerce whereas the department of industry was concerned with firms engaged in industry. any individual desiring to register a private firm must submit the form prescribed by the Private Firm registration regulation 1978 rule 3, Schedule-1 along with the

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prescribed application fees to the concerned department. if the department finds the statement of the application to be true and reasonable to register, it will register the private firm and issue a certificate of registration accordingly. The registration of a company was governed by the Company act, 1997. an application with a Memorandum of association and the articles of association of the company along with application fee must be submitted to the office of the Company registrar. The registrar, makes any necessary inquiries, registers the company and issues a certificate of incorporation within 15 days. The registrar had the authority to reject the application if the proposed name of the company is already registered, or the proposed name is against public morals or the objective of the company is contradictory to existing laws, or the conditions required to incorporate the company under the act are not fulfilled. in this case, the registrar gives due notice and explain the reasons for rejection to the applicant. The registration of entities with respect to trade in services was governed by other laws, e.g., nepal agency act, 1958, Partnership act, 1964.

33. in response to questions concerning the registration fees, the representative of nepal said that the application fee and the registration fee of different kinds of legal entities were nominal, non-discriminatory and not related to the value/ volume of export and import. He requested the identification of the specific gaTT 1994 and gaTS obligations applicable to the registration fees. The system of corporate registration in nepal had been primarily introduced for statistical purposes. The level of such fees varied depending on the nature of legal entity - sole proprietorship, partnership or company, and only approximated the cost of collecting statistics and verification of documents. These registration fees were not more onerous for those registering for importation and exportation than for firms that produce domestic goods.

34. The commitment was sought that there would be no restrictions on the right of individuals and enterprises to import and export goods into nepal’s customs territory, except as provided in WTo agreements, and that individuals and firms would not be restricted in their ability to import or export based on their registered scope of business. The commitments should ensure that fees associated with the right to import and export were applied in conformity with the WTo, including articles Viii:1(a), Xi:1 and iii:2 and 4 of the gaTT 1994.

35. The representative of nepal confirmed that all registered companies could import and export goods for business purposes on the basis of the import and export regulations of nepal. individuals could import for business as long as they were registered as sole proprietor undertakings. Foreign firms could register to import or export their own produce without establishing a physical presence or investment in nepal and without having the intent to distribute imports in the domestic market. a registered firm or company could change or extend the scope of business, e.g., to include importation and exportation, by submitting application indicating the desire to do so to the agency where it was originally registered, with the exception

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of prohibited sectors and with the stipulation that the applicant should get an activity license in advance if he applies for changing or extending the scope of business to include a sector where such a license is required. retail businesses were reserved for nepalese nationals. nepal believed that the agency business (which was not required for importation or exportation) was covered by gaTS. The relevant market access conditions would be governed by nepal’s schedule of specific commitments on services. The registration requirements for companies that conduct purely domestic activities and for companies engaged in import and export activities were the same. The registration requirements were the same for both national and foreign firms.

36. The representative of nepal said that nepal confirmed that from the date of accession, its laws and regulations relating to exportation and importation of goods and all fees, charges and taxes levied thereof, including registration requirements would be applied in full conformity with WTo obligations, including articles i, Viii:1(a), Xi:1 and iii of the gaTT 1994 and that nepal would implement such laws and regulations in full conformity with these obligations. The Working Party took note of these commitments.

import regulation

Customs tariff

37. The representative of nepal said that the prevailing basic customs tariff rates were 5, 10, 15, 25, 40, 80 and 130 per cent. There was a significant number of tariff lines with zero duty. The majority of the import items fall in the customs duty range of 10-20 per cent. The unweighted average customs duty rate for imports was approximately 11 per cent since1996/97. The maximum tariff rate of 130 per cent applied to cars and jeeps will be reduced and specified in the goods schedule. a minimum tariff rate up to 5 per cent applied for daily consumption items. as a general rule, nepal applied advalorem duties. a very limited number of products such as motor fuels, kerosene oils, gas and fuel oils, cement clinkers and some cements, liquor, tobacco and tobacco products were subject to specific duties. The Harmonized System of Commodity Classification (HS) was incorporated in nepal since the fiscal year 1992/93. The 2002 version of the HS nomenclature had been put into effect. nepal’s Customs Tariff is available in the Secretariat.

38. nepal’s commitments on bound tariffs are contained in the Schedule of Concessions and Commitments on goods (document WT/aCC/nPl/16/add.1) annexed to nepal’s draft Protocol of accession to the WTo.

Tariff rate quotas, tariff exemptions

39. The representative of nepal said that there were no tariff quotas for imports in effect in nepal. The current legislation provides for certain tariff exemptions and tariff reductions, in order to facilitate the import of specific goods on a provisional basis. These measures were taken by the government and published in the nepal gazette. They were valid for all suppliers of the goods specified in the Custom

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Tariff. import duty exemptions were in effect for the importation of the following goods: books; equipment and vehicles for trolley bus services; medical equipment for public health projects; cold storage equipment for the preservation of agricultural products including fish and fruits; alternative power development equipment; high quality printed materials imported for the promotion and publicity of the tourism in nepal; threshing machines and husk-machines (Pankhi); raw jute; and crates for keeping eggs, falling under chapter 48. The list of exemptions and tariff reductions was published in the Customs Tariff.

other duties and charges (odCs)

40. Some members of the Working Party noted that nepal levied on a number of products the local development Fee, the special fee, the agriculture development fee, the cigarettes and alcohol fee and the alcohol control service fee. They requested that the fees be incorporated into the customs tariff rates, or as a minimum bound at the currently applied rates, upon accession, in accordance with the Understanding on article ii paragraph 1(b) of gaTT 1994.

41. The representative of nepal said that for reasons related to local development, health and education, including the need to generate fiscal revenue earmarked to respond to critical local needs, the local development Fee of 1.5 per cent of the value of imports had been set up. other duties and charges in the range of 2.5 per cent - 11.5 per cent were levied on industrial goods, and in the range of 2.5 per cent – 14.5 per cent were levied on agricultural goods. These non-tariff charges were applied to the c.i.f. value of the imported goods. in the revised market access offer on goods, nepal confirmed the elimination of odCs for all tariff lines over a period of time between two and ten years as reflected in the goods Schedule annexed to the Protocol of accession of nepal. after that date all odCs would be bound at zero.

42. The representative of nepal confirmed that from the date of accession nepal would eliminate odCs in accordance with the timetable contained in the goods Schedule annexed to the Protocol of accession of nepal. nepal also undertook not to introduce new odCs. The Working Party took note of these commitments.

Charges for Services rendered

43. The representative of nepal said that currently there are no duties and charges imposed on imports for customs processing. nevertheless, the Customs act of 1962 and customs regulations provide the authority to the Customs office to charge for the services rendered. There was a charge of 1 per cent of the total value of the imported goods as import licence fee. He acknowledged that such a fee was based on import value, not the cost of services, and indicated that nepal intended to change the import licence fee to the system of determining the fee based on the flat rate or the advalorem rates, whichever is lower. nepal reserved the right to introduce customs processing/customs fee equivalent to the cost of services rendered for the items not requiring import licences.

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44. The representative of nepal said that from the date of accession nepal would charge an import licence fee representing the approximate cost of the services rendered. nepal would apply this and any other fees and charges for services rendered in accordance with WTo agreements, in particular with article Viii of the gaTT 1994. The current charge of 1 per cent would be at a flat rate in nrs to ensure that it did not exceed the approximate cost of administering application of import licenses. The Working Party took note of these commitments.

Quantitative import restriction including prohibitions

45. The representative of nepal said that all items were free for import. nepal at present applied no import quotas. The products banned for import, domestic production and sale, in accordance with the export import (Control) act, 1957, the narcotics drug Control act, 1976, and the Country Code (Muluki ain), are listed hereunder.

(a) narcotic drugs like opium and morphine; (b) liquor containing more than 60 per cent alcohol; (c) Beef and beef products.

The products restricted for import and domestic production are listed hereunder:

(a) Materials used in the production of arms and ammunition; (b) guns and cartridges; (c) Caps without paper; (d) arms and ammunition, and other explosives. (e) Wireless, walkie talkie and similar other audio communication equipment’s (f) Valuable metals and precious stones. nepal did not restrict the importation of jewellery made of valuable metals but there was a restriction on the importation of gold, silver and other valuable metals and precious stones.

licensing procedures

46. The representative of nepal said that automatic licensing was applied for information purposes both for the import and export of all goods not restricted. licenses were also applied for the personal baggage exceeding the established allowance. in addition, the Treaties of Trade and Transit between nepal and india envisage licensing in order to ensure that the transit of goods does not violate articles 8 and 9 of the Transit Treaty, which embody restrictions applied in india in the spirit of articles XX and XXi of gaTT 1994 (general and security exceptions). The department of Commerce issues the licenses in accordance with the following procedures. The licensing system is not intended to restrict either the quantity or the value of imported goods. it is simply intended to protect public health, consumer

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and environment welfare and national security. alternative methods in the form of the requirement to present to the competent authorities the letters of credit have been introduced in order to obtain the necessary information and simplify the procedures. import licensing was authorized and maintained under export import (Control) act, 1957, export - import rules, 1978, Customs act, 1962, Customs regulation, 1969, annual Finance act based on annual Budget Speech of Finance Minister, and the order made by the Ministry of Commerce pursuant to the export and import (Control) act, 1957 and rules, 1978. import licensing was statutorily required. The designation of products to be licensed and the licensing of products to be imported was not left to administrative discretion. The government may abolish the system of licensing only by statutory action. at present, the automatic licensing system had been relaxed and the submission of application for obtaining a license was not required. However, the letters of credit opened for imports and exports must be presented at the customs office during the time of export and import.

47. For the restricted import products an import licence is required. The export import (Control) act, 1957 gives the right to the government to introduce import controls in the case of BoP problems and in specific cases of governmental assistance to economic development. The government may specify whether to apply them by value or quantity. There is no requirement as to how far in advance an application for a licence must be made. a licence can be obtained within a shorter time limit or for goods arriving at the port without a licence, if all documents are in order. a licence can be granted immediately upon request, if all documents are in order. There are no limitations as to the period of the year during which applications for licenses and/or importation can be made. import licenses are, in most cases, issued by a single administrative organ which is the department of Commerce. applications for licenses are submitted to the doC. application may also be reviewed by experts of another agency in certain cases involving goods where assessment of conformity with standards and technical regulations is required. in this case, the department of Commerce coordinates with the agencies concerned. There are no circumstances under which an application for a licence may be refused other than for failure to meet the basic requirements. When a licence is refused the applicant is advised of the reasons. He may appeal to the Ministry of industry, Commerce and Supplies, within 35 days of the notice issued to him of such refusal. The applicant should clearly mention in his complaint his name and address, subject-matter to complaint, claims and reasons of claims. He must submit copies of all the relevant documents along with the complaint for evidence and a copy of the complaint should also be sent to the licensing authority.

48. The representative of nepal said that the following products are subject to import licensing:

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Table 2: Products Subject to import licensing

HS number description Justifying Provision of WTo

85.28all types of radio communication system with the frequency range of 30 Khz to 300 Khz.

article XXi of gaTT 1994

85.28 radio transmitter and transceiver

85.29 Television transmitter, FM radio transmitter

85.25 Wireless transceiver85.25 Walkie talkies85.17 Cordless telephone85.29 Video sender85.28 amateur radio

85.17 inmarsat terminal (portable satellite hand set)

85.17 Satellite communications equipment

85.17 radio paging system-paging transmitter, pager

85.17Communication equipment-cellular telecommunication base station, cellular hand set.

85.28 Satellite broadcast receiver.85.28 Satellite receiver (other than broadcast)85.17 radio repeater station85.17 radio navigation, transmitter/transceiver85.17 radio determination transceiver, receivers

93.05 Materials used in the production of arms and ammunition.

93.01-93.04 guns and cartridges93.06 Caps without paper

93.07 arms and ammunition and other explosives

Chapter 71 Valuable metals and precious stonesnone, except article XX (c) of gaTT 1994 for gold and silver

49. The representative of nepal said that nepal would enact legal instruments codifying the substance of the WTo agreement on import licensing Procedures and to bring its licensing provisions for valuable metals and precious stones into conformity with WTo by applying automatic licensing. Provisions relating to gold and silver would be administered in conformity with article XX(c) of gaTT 1994. as stated in the legislative action Plan reproduced in annex ii of this report, amendments to the export import (Control) act, 1957 (amendment) and to the export import (Control) regulations, 1978 (amendments) had already been prepared, or would be prepared by the department of Commerce in august 2003, and would be submitted

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by the Ministry of industry, Commerce and Supplies to the Council of Ministers by September and october 2003, respectively. it is expected that endorsement and adoption by the Council of Ministers of the amendments to the act and the regulations would be approved in december 2003.

50. The representative of nepal confirmed that, from the date of accession, nepal would eliminate and would not introduce, re-introduce or apply quantitative restrictions on imports or other non-tariff measures such as licensing, quotas, bans, permits, prior authorization requirements, licensing requirements, and other restrictions having equivalent effect, that cannot be justified under the provisions of the WTo agreement. if balance-of-payments measures were necessary, nepal would impose them in a manner consistent with the relevant WTo provisions, including article Xii and article XViii of the gaTT and the Understanding on Balance-of-Payments Provisions of the gaTT 1994. He further confirmed that the legal authority of the His Majesty’s government of nepal to suspend imports and exports or to apply licensing requirements that could be used to suspend, ban, or otherwise restrict the quantity of trade would be applied from the date of accession in conformity with the requirements of the WTo. The Working Party took note of these commitments.

Customs Valuation

51. The representative of nepal said that in accordance with the Customs act, as amended in 1997, the customs value of the imported goods was assessed on the basis of the invoice price shown in the invoice document provided by the importer. if the customs had reasonable doubt that the invoice price did not correspond to the price actually paid for the goods, that is the transaction value, the customs would refer to the value of similar, or identical goods imported into nepal. if this information was not available, the customs would refer to the international prices, local market price, suggested price lists of manufacturers, recorded prices of previous imports of identical or similar goods, a list of reference prices and other available information. The Customs was not applying the provisions of articles 5 and 6 of the agreement on implementation of article Vii of gaTT 1994 regarding imputed or computed valuation. There were no provisions in the current legislation to the case when the buyer and seller are related and how the customs should act in those cases. There were no minimum prices in effect. due to the need to ensure revenue protection and trade facilitation, a reference price list was still used for comparison purposes with the invoice price with respect to sensitive products. nepal was examining the modifications that would have to be introduced in current legislation and practices to fully implement the WTo Custom Valuation agreement. To attain this objective it would be necessary to train personnel, to prepare implementation measures and to upgrade the institutional capabilities and material infrastructure of the Customs administration. The timetable for complete implementation would depend on the progress that would be achieved on those issues. nepal would require technical assistance in this respect.

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52. The representative of nepal recognized the fact that custom valuation based on the value of local goods and on reference prices was contrary to the WTo Customs Valuation agreement. He confirmed that nepal intended to adopt the valuation methods of articles 5 and 6 of the agreement and to improve nepalese legal provisions to implement a WTo consistent regime. nepal would incorporate the remaining provisions of the WTo agreement on Customs Valuation into the Customs act, 1962 and the Customs regulation, 1969. a timetable for the enactment of legislation that implements the WTo agreement on Customs Valuation in nepal’s legal regime was provided in the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1 and in the action plan circulated in document WT/aCC/nPl/15. The department of Customs had prepared the amendments to the Customs act, 1962 (amendment) and to the Customs regulations, 1969 (amendment) which would be submitted by the Ministry of Finance to the Council of Ministers by august 2003. These amendments would be endorsed and adopted by the Council of Ministers by 31 december 2003. Having regard to the action plan, nepal would implement the provisions of articles 7 and 10 of the Customs Valuation agreement at the time of accession if the valuation of imported goods for customs purposes could be ascertained on the basis of the transaction value, the transaction value of identical goods or the transaction value of similar goods.

53. in response to questions concerning the right to appeal referred to in article 11 of the Customs Valuation agreement, the representative of nepal said that in accordance with Section 37 of the Customs act 1962, the importer had the right to appeal to the revenue Tribunal against the decisions of customs officials in respect of the determination of customs value. nepal was currently preparing the establishment of an independent administrative tribunal to review the decisions of the customs authority regarding customs valuation. it was foreseen that the decisions of the administrative tribunal would be subject to appeal to the revenue Tribunal, which was a part of judicial system. nepal believed that such institutional system would provide prompt review and correction of administrative actions relating to customs matters, in accordance with article X:3(b) and (c) of gaTT 1994 and the agreement on Customs Valuation. He confirmed that in pursuance of the action plan contained in Table 3, the right to appeal to an independent administrative tribunal would be in effect on 31 december 2004. The Working Party took note of this commitment.

54. Some Members of the Working Party requested that nepal describe the surety bond system provided for in section 13.6 of the Customs act 1962, provide a timetable for enacting the interpretative notes referred to in article 14 of the Customs Valuation agreement, and clarify the manner of publication of customs issues including valuation referred to in article 12 of the Customs Valuation agreement. one member also indicated that it did not appear that section 13.6 of the Customs act, 1962 meets the requirements of article 13 of the agreement. The representative of nepal responded that The Financial ordinance 2003 section 8 (3) has further

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elaborated the system of surety bond as provided in section 13.6 of the Customs act, 1962. The ordinance provides that if the transaction value of the goods could not be ascertained and the importer wishes to clear up the goods beforehand, the Customs officer may fix a provisional value for immediate clearance. The importer will have the right to clear the goods after paying the duty on such provisional value by making a deposit in an earnest account. The ordinance had the force of law. Concerning publication of legislation, regulations and administrative decisions on customs issues including valuation, amendments to the Customs law and Customs regulations will provide that they will be published in the nepal gazette or in the notification of the Customs department or may be available in the web-site of the Customs department. The interpretative notes will be incorporated in law and regulation in accordance with nepal’s action plan for the implementation of the Customs Valuation agreement.

55. The representative of nepal requested that the Working Party grant a transitional period from the date of its accession to allow nepal to obtain and utilize technical assistance to assist in the full implementation of the obligations of the agreement. Full implementation of the agreement on Customs Valuation would be carried out gradually and progressively and would be completed, at the latest prior to 1 January 2007, in accordance with the timetable contained in Table 3 below. He confirmed that during the transition nepal will not be required to observe the provisions of article 7:2(a) or (f), thereby allowing for the application of reference values and values based on local prices to be applied to imports for the purposes of customs valuation. in addition, the provisions of articles 5, 6, 10, 11, 12 and 14 of the agreement would be gradually adopted in accordance with Table 3. if such a transitional period were granted, nepal’s deviations from the provisions of the agreement would be strictly limited to these articles, and all other provisions of the agreement would be implemented for all imports.

56. during this period, nepal would ensure that its regulations under current legislation in place and additional legislation implemented during the transition concerning customs valuation would be applied on a non-discriminatory MFn basis to all imports. any changes made in its laws, regulations and practice during the transition period would not result in a lesser degree of consistency with the provisions of the agreement on Customs Valuation than existed on the date of accession. nepal would participate in the work of the Committee on Customs Valuation and would seek out all available technical assistance, including under article 20:3 of the agreement, to ensure that its capacity to fully implement the agreement upon expiration of the transition period is assured. The representative of nepal presented an action Plan setting out details of the steps that still remained to be taken in order to achieve this objective and a timetable for each step (Table 3).

57. The representative of nepal stated that legislation on the valuation of imports for customs and taxation purposes conforming to the requirements of the agreement on Customs Valuation would be enacted by 1 July 2004. nepal would

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progressively implement the agreement on Customs Valuation in accordance with the action plan in Table 3, and with the understanding that during this period the scope of implementation of other aspects of the agreement, as described in paragraphs 55 and 56, would be applied by nepal. Full implementation will start from 1 January 2007. The Working Party took note of these commitments.

Table 3: action Plan for implementation of the agreement on Customs Valuation

action implementation date

Current legal provisions provide the right of appeal of administrative decisions to the revenue Tribunal (article 11)

Sureties for the release of merchandise provided for in current Customs act 1962 article 13.6 and the Financial ordinance 2003 (article 13)

Completed

approval of amendments to the Customs act and the Customs regulations, enacting the legislative framework for the following measures:

gradual implementation of valuation hierarchy:--Transaction valuation (article 1)--Transaction value of identical goods (article 2)–Transaction value of similar goods (article 3)--enforcement of Prohibited forms of Valuation when transaction value or transaction value of identical or similar merchandise is applicable (article 7(b), (c), (d), (e) and (g))

Provision in legislation for the protection of confidential information (article 10)

Publication of relevant laws and regulations (article 12)

importer’s right to an explanation in writing from the customs administration concerning the determination of customs value (article 16)

Prior to 1 January 2004

amendments to current legislation to establish an independent administrative tribunal for right to appeal from administrative decisions (article 11)

Training of customs officials in the areas of clearance, verification, audit and the method to combat valuation fraud

Preparation Customs Valuation Manual


Provision in law and regulations of the interpretative notes (article 14)


gradual implementation of valuation hierarchy: further amendments to legislation to complete implementation:--imputed value (article 5)--Computed value (article 6)--enforcement of Prohibited forms of Valuation (article 7(a) and 7(f)


Full implementation of agreement on Customs Valuation Prior to 1 January 2007

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application of internal Taxes

58. The representative of nepal said that consistent with article iii of gaTT 1994 domestically produced goods and imported goods were both subject to the same taxes, namely value added tax (VaT) and excise taxes. The local Self governance act 1998 had abolished the local transit tax called octroi.

VaT

59. The representative of nepal said that in the fiscal year 1997/98, the VaT had replaced the sales tax and all the existing taxes on services, including entertainment and hotel, and contract taxes. VaT had been introduced with the rate of 10 per cent for taxpayers registered in the VaT office and 20 per cent for taxpayers who do not report to the VaT office, in order to enhance tax collection and discourage tax avoidance. at the time when the Value added Tax act was enacted, every person (defined in the act as any individual, firm, company, association, institution, partnership firm, cooperative, joint business, religious endowment, or fund; or any government body, any religious organisation, charitable trust or similar other bodies and branches or sub-branches there engaged, with or without profit, in taxable transactions) engaged in any transaction is required to apply for registration in a prescribed form to the tax officer within 90 days from the commencement of this act. after the commencement of this act, every person desirous to be involved in any commercial transaction is required to register in the tax office before beginning to engage in such transactions. While evaluating the application, tax officers may ask the applicants for additional information and documents and it shall be the duty of an individual to submit such information/document within seven days to the concerned authority. Upon the verification of the application form, the tax authority shall issue the registration Certificate to the concerned individual within 30 days from the date of filing the application. The Certificate should be displayed in a conspicuous place at his principal place of transaction. if there is more than one place of transaction, he should display a copy of the registration certificate, attested by a tax officer, conspicuously at each place. it shall be the duty of every registered person to use the registration number for all transactions related to value added tax, excise duty and to other transactions as prescribed. exemption from registration was provided to small vendors whose commercial transaction value was less than nrs 2.0 million (approximately US$26,000 at current exchange rates) during the last twelve months.

60. The representative of nepal said that the Value added Tax act 1996 provided a number of goods and services exempted from the application of VaT. in addition, VaT is applied to certain other goods and services at a zero rate. Section 5 of the act provides that these exemptions from VaT application are applied equally to imports and domestic products. These exemptions and zero rates are listed in annex iii.

61. in response to questions concerning the tax exemptions in favour of cottage industries, the representative of nepal said that cottage industries having transactions

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less than the annual taxable transaction threshold level of 2 million nrs turnover established in the VaT regulations were exempt from VaT. The industrial enterprises act 1992 defines ‘Cottage industry’ as industries utilizing specific skills or local raw materials and resources, and labour intensive and related with national tradition, art culture such as handloom; pedal-loom; semi-automatic loom; warping, dyeing and printing; tailoring (other than ready made garments); knitting, hand knitted woollen mats and blankets (radi,pakhi); woollen carpet; pasmina; woollen garments; carpentry; wooden artistic product; cane and bamboo works; natural fibre products; hand made paper and goods made up thereof; gold; filigree products including silver, brass, copper, precious and semi precious stones; ornaments; sculpture and pottery; honey, chauri, cardamom processing; clay or ceramic pottery; leather cutting and tanning; rural tanning and leather goods producing works; jute, sabai grass, babio, choya, cotton thread products; artistic products made up of bones and horns; stone carving; ceramic fine arts; pauwa; boutique; incense stick (dhup); dolls and toys industries with the fixed assets of up to two hundred thousand rupees.

excise Tax

62. The representative of nepal said that the excise tax was levied to the products specified in the Finance act. This tax did not apply to imported goods. imported goods were subject to the equalising duty levied at the rate of the excise tax applicable to the products listed in the Financial act. The objective of this measure was to provide the same treatment to domestically produced and imported goods. The excise tax was applied to domestic goods on the basis of ex-factory price. imported goods were taxed on the basis of C.i.F price. excise taxes as of July 2002 are listed in annex iV.

63. noting that chhyang, beer, cider and other beverages were subject to tax differentials, a Member asked that nepal explain whether chhyang was produced in nepal for commercial sale, if chhyang was exported, if the excise tax on chhyang was collected at the time of production or at the point of sale, and whether chhyang was a fermented beverage like beer or wine, or a distilled beverage like whisky or vodka. The representative of nepal responded that chhyang was a fermented beverage like beer and its alcohol content depends on the manner the diverse local tribal people ferment it. at present, chyyang was neither produced for commercial sale nor was it exported. in case it was produced for commercial sale, the excise tax would be collected at the time of production.

64. The representative of nepal confirmed that, from the date of accession, nepal would apply its domestic taxes, including value-added and excise taxes, in a non-discriminatory manner consistent with articles i and iii of the gaTT 1994. For beverages classified as “chhyang”, a fermented beverage similar to beer, nepal would maintain an equal rate of excise duty for chhyang and beer from the date of accession. The Working Party took note of these commitments.

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rules of origin

65. The representative of nepal said that the application for import requires the importer to state the country of origin of the goods to be imported. nepal was applying the rules of origin under the SaPTa agreement in order to establish whether preferences should be applied on imported goods. in case of exports, document certifying the origin of goods, export declaration form, invoice, letter of credit, packing list, visa for ready-made garments for exports were required along with the application. Members of the Federation of nepalese Chambers of Commerce and industry were the only agencies authorized to issue a certificate of origin for certifying the export of nepalese origin goods.

66. in response to further questions, the representative of nepal said that proof of origin was required for products originating in those countries exporting to nepal under preferential treatment. The certificate of origin issued by an authority designated by the government of the exporting country and notified in accordance with the Certification Procedure constituted the proof of origin. Products wholly produced or obtained in the exporting country or products not wholly produced or obtained but processed in the exporting country were considered to originate in the exporting country. raw or mineral products extracted from its soil, its water or sea beds, agricultural products harvested, animals born and raised and the products obtained from these animals, products obtained by hunting or fishing, products of sea fishing and other marine products taken from the high seas by its vessels and processed and/or made on board its factory ships, used articles collected and the recovery of raw materials, waste and scrap resulting from manufacturing operations and goods produced exclusively from the above products were considered products wholly produced or obtained in the exporting country. Products worked on or processed as a result of which the total value of materials, parts or produce originating in other countries or of undetermined origin used, did not exceed 50 per cent of the f.o.b. value of the products produced or obtained, and the final process of manufacture was performed within the territory of the exporting country, were eligible for preferential concessions. Similarly, products covered by sectoral agreements between member countries of regional groupings were also eligible for preferential treatment. nepal only requires proof of origin to determine whether goods qualify for preferential treatment under the trade agreements to which it is a Party or by national legislation. nepal was ready to implement the WTo agreement on rules of origin.

67. The representative of nepal confirmed that nepal would introduce a WTo-consistent regime with respect to rules of origin upon accession, incorporating the provisions of the WTo agreement on rules of origin. nepal would incorporate the provisions of the WTo agreement on rules of origin into the Customs act, 1962 and the Customs regulation, 1969. a timetable for the enactment of legislation that implements the WTo agreement on rules of origin in nepal’s legal regime was provided in the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1.

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The department of Customs had prepared the amendments to the Customs act, 1962 (amendment) and to the Customs regulations, 1969 (amendment) which would be submitted by the Ministry of Finance to the Council of Ministers by august 2003. it is expected that the Council of Ministers would endorse and adopt these amendments by 31 december 2003 and the provisions of the new law would come into force in 2004.

68. The representative of nepal confirmed that nepal, from the date of accession, would adopt the procedural protection covering the requirements of article 2(h) and annex ii, paragraph 3(d) of the WTo agreement on rules of origin in its domestic legislation and that for non-preferential and preferential rules of origin, respectively, the relevant nepalese authorities would provide, upon request of an exporter, importer or any person with a justifiable cause, an assessment of the origin of the import and outline the terms under which it will be provided. The Working Party took note of these commitments.

other customs formalities

69. The representative of nepal confirmed that nepal did not require any kind of certification of the customs documentation by consular officials.

Preshipment inspection

70. The representative of nepal said that there was no system of preshipment inspection in nepal.

71. The representative of nepal confirmed that if in the future nepal engaged the services of a preshipment inspection enterprise, nepal would put into place a preshipment inspection system programme in conformity with the WTo agreement on Preshipment inspection and would ensure that preshipment inspection enterprises operating on its behalf complied with the provisions of the WTo agreements, including the agreements on Customs Valuation, import licensing Procedures, and Technical Barriers to Trade. Provision would be made that decisions by such firms could be appealed by importers in the same way as administrative decisions taken by the His Majesty’s government of the Kingdom of nepal. any preshipment inspection regime would be temporary. nepal would also give due consideration to the recommendations of the Working Party on Pre-shipment inspection of 2 december 1997 and subsequent recommendations issued by that Working Party. The Working Party took note of these commitments.

anti-dumping, countervailing duties and safeguard regimes

72. The representative of nepal said that nepal did not have an antidumping or countervailing duty regime at this time, but intended to introduce a WTo-consistent legal regime with respect to anti-dumping and countervailing measures. a timetable for the enactment of legislation to introduce an anti-dumping law that implements the WTo agreement on anti-dumping in nepal’s legal regime was provided in

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the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1. draft legislation would be prepared in december 2003, the endorsement by the Council of Ministers would take place in March 2004 and the expected approval date was July 2004.

73. a timetable for the enactment of legislation that implements the WTo agreement on Subsidies and Countervailing Measures in nepal’s legal regime was also provided in the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1. a draft bill, policies and regulations to establish a countervailing duty regime would be prepared by the department of industry, submitted to the Ministry of industry, Commerce and Supplies and were expected to be adopted by the Council of Ministers in May 2004.

74. With reference to the safeguards regime and protection of the balance-of-payments, the representative of nepal said his government was authorised to restrict imports by issuing an order in accordance with Section 3 of the export import (Control) act, 1957. The involved authorities are the Ministry of industry, Commerce and Supplies, department of Commerce and the Central Bank who would only use that authority in conformity with WTo provisions. Currently, there were no quantitative restrictions on imports other than those banned for import or domestic production listed in paragraph 45 to 48 above. The representative of nepal noted that it was the intent of his government to introduce WTo-consistent legislation and amend the export import (Control) act (1957) and regulations (1978) in accordance with the legislative action Plan contained in WT/aCC/nPl/10/rev.1, authorizing trade restrictions for trade remedies and for balance of payment purposes only in the cases specified in the WTo agreements and in accordance with WTo provisions.

75. The representative of nepal confirmed that from the date of accession nepal would only use the authority in Section 3 of export import (Control) act of 1957 in conformity with WTo provisions, including in compliance with gaTT 1994 article XViii and the Understanding on the Balance of Payments Provisions on the general agreement on Tariffs and Trade 1994. nepal planned to introduce WTo-consistent legislation and regulations on safeguard measures and other trade remedies as indicated in the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1. He further confirmed that nepal would apply safeguard, anti-dumping, or countervailing duty measures only after notifying and implementing laws in conformity with the provisions of WTo agreements on Safeguards, the implementation of article Vi of the gaTT, and on Subsidies and Countervailing Measures, and that after accession nepal would apply any such measures only in conformity with the relevant WTo provisions. The Working Party took note of these commitments.

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export regulation

registration requirements, customs tariffs, fees and charges for services rendered, application of internal taxes to exports

76. The representative of nepal said that the same registration requirements and tariff nomenclature were used for imports and exports. The import and export licensing regime had been introduced for statistical purposes. Currently nepal levied export duties on the items listed in annex Vi. The purposes of levying export duties are to discourage environmental degradation, to ensure food security and to discourage trade diversion to neighbouring countries. The application for the export licence was submitted to the director-general of the department of Commerce under the prescribed form indicated in Schedule-2 of the export import regulation 1978. The necessary documents and the information required were mentioned in the application form. The export licenses were granted for different purposes, e.g., for commercial purpose, for purposes of private use for specimen purpose, for purposes of government office use, for maintenance purpose etc. The commercial purpose export licence is granted only to registered entities. The authority issues the certificate of export licence, in accordance with the format prescribed in Schedule-4 of the export import regulation 1978.

77. The purpose of the export duties on natural resources were aimed at preserving the environment and the country’s afforestation resources. The legal basis for the export duties was the Finance act. The export duties applied by nepal are listed in annex Vi.

78. The representative of nepal said that nepal levied an export service fee of 0.5 per cent advalorem. The export service charge is applied on the basis of f.o.b. price, to all exports from nepal. nepal has not considered reducing further the service charge. an important reduction has already been implemented from 2 per cent to the current 0.5 per cent. The current level of the service charge did not represent a tax on export for fiscal purposes. nepal was examining the cost of the services rendered by the administration with respect to exports and imports and would revise the export charge, along with the import licensing fee, to bring them into conformity with the requirements of article Viii of gaTT 1994.

79. The representative of nepal said that from the date of accession nepal would charge an export service fee representing the approximate cost of the services rendered, and would apply this and other fees and charges for services rendered to exports in accordance with WTo agreements, in particular with article Viii of the gaTT 1994. in this regard, the current charge of 0.5 per cent would be at a flat rate expressed in nrs to ensure that it did not exceed the approximate cost of the export services rendered. The Working Party took note of these commitments.

Quantitative export restrictions, including prohibitions, quotas and licensing systems

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80. Some Members of the Working Party noted that nepal banned from exportation the following products: raw hides and skin (including dry salted); raw wool; all imported raw materials, parts and capital goods; Mamira; and logs and timber. in their view, the ban on the export of raw hides and skins, raw wool, and logs and timber could not be justified under articles Xi(a) and XX(g) of the gaTT 1994, unless the export restrictions were made effective in conjunction with restrictions on domestic production or consumption, or action was taken to prevent or relieve critical shortages of foodstuffs or other products essential to nepal. The ban on the export of imported raw materials, parts and capital goods appeared to be inconsistent with article iii and Xi of gaTT 1994 and should be eliminated. The representative of nepal said that logs, timber and mamira obtained from naturally grown plants were exhaustible natural resources and it was nepal’s responsibility as a signatory of various Multilateral environmental Conventions, to preserve and protect natural resources. Thus, there were also restrictions for domestic consumption and for authorized uses. nepal would consider lifting the ban or restriction on the export of these products which were planted (not natural resources) and grown for commercial purposes. The export restrictions on raw hides and skins and raw wool, had been temporarily applied and nepal intended to lift this export restriction at an appropriate time. nepal had banned the export of imported raw materials, parts and capital goods due to the possibility of trade deflection. These measures would be reviewed in the light of article iii and Xi of gaTT 1994.

81. The representative of nepal said that as a party to the Convention on international Trade in endangered Species of Flora and Fauna (CiTeS), nepal honoured the obligations stemming from the said Convention. The Forest act, 1992 did not award any export licence for the products prohibited by the Convention. The list of protected wild animals and forest based products banned for exports as of July 2001 is as follows:

Table 4: list of Protected Wild animals and Forest-based Products

Wild animalHS Code Scientific name english name

01.06 Macaca assamensis assamese monkey01.06 Manis pentadactyla indian pangolin01.06 Caprolagus hispidus Hispid hare01.06 Canis lupus Wolf01.06 Usrus arctos Himalayan bear01.06 ailurus fulgens red panda01.06 Prionodon pardicolor Spotted linsang01.06 Felis bengalensia leopard cat01.06 Felis lynx lynx01.06 neofelis nebulosa Clouded leopard01.06 Panthera tigris Tiger01.06 Panthere uncia Snow leopard

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Wild animalHS Code Scientific name english name

01.06 elephas maximus asiatic elephant01.06 rhiniceros unicornis rhinoceros01.06 Sus salvanius Pygmi hog01.06 Moschus moschiferos Musk deer01.06 Cervus duvauceli Swamp deer01.06 Bos gaurus gaur01.06 Bos grunniens Wild yak01.06 Bubalus bubalis Wild buffalo01.06 ovis ammon great Tibetan sheep01.06 Pantholops hodgsoni Tibetan antelope01.06 antilope cervicapra Black buck01.06 Tetraceros quadricornis Four horned antelope01.06 Hyaena hyaena Striped hynae01.06 Platanista gangetica gangetic dolphin

HS Code Forest Based Products, restricted for exports12.11 Cordyceps sinensis12.11 orchis incanata 12.11 nardostachys grandiflora12.11 rauwolfia serpentine12.11 Cinnamum glaucescens12.11 Valeriana jatamansi12.11 lichen spp12.11 rock exudete (Silazit)12.11 abis spectabilis12.11 Taxus baccata12.11 Michelia chanpaca12.11 acacia ctechu12.11 Shorea robusta

82. With reference to the export of handicrafts, the representative of nepal said that there were no fixed valuation prices for handicrafts, or an export minimum price list. The exporter submits its export prices to the Handicrafts association, who evaluates the proposed prices on the basis of certain criteria, to recommend the exporter an export price. Criteria used by the Handicrafts association were: Measurement - height and weight; Cost of materials incorporated: domestic and from third country; Cost of labour incorporated in the products; and the Quality of the product. The Handicrafts association is a private entity, with no governmental intervention. it evaluates export prices as a service to producers to avoid them under-pricing their products for export. For the export of handicrafts made from the parts of domestic animals, the exporters must present the exporters declaration form, the invoice and a

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sample of the goods to be exported to the Handicrafts association. The association issues a no objection letter if they are made from parts of domestic animals. The service fee charged by the association for this purpose is: nrs 50 for FoB value less than nrs 10,000; and nrs 100 for FoB value nrs 10,000 and above. The association reviews the price according to the criteria described above, and if it is approved the certificate is issued. in the case of archaeological goods the exporter has to produce the approval certificate from the department of archaeology. The service fee charged by the Handicrafts association is 0.5 per cent of f.o.b. price of exported goods.

83. The representative of nepal said that as stated in the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1 the export import (Control) act, 1957 (amendment) and the export import (Control) regulation 1978 (amendments) would be amended. amendments to bring any export licensing requirements or other export control requirements into conformity with WTo provisions had already been prepared, or would be prepared by the department of Commerce in august 2003, and would be submitted by the Ministry of industry, Commerce and Supplies to the Council of Ministers in September and october 2003, respectively. nepal would review and identify provisions inconsistent with the WTo, and the export/import legislation would be amended to bring it into conformity with the relevant WTo provisions. endorsement and adoption by the Council of Ministers of the amendments to the act and the regulations would be approved by 31 december 2003.

84. The representative of nepal confirmed that from the date of accession, nepal would apply its export licensing requirements and other export control requirements in conformity with WTo provisions, including those contained in articles Xi, XVii, XX and XXi of the gaTT 1994. The Working Party took note of these commitments.

export financing, subsidy and promotion policies

85. The representative of nepal said that in order to provide a macro-environment conducive for export promotion, the government had formulated trade policy, export policy, foreign exchange policy and domestic trade policy. a Commercial Council with majority participation of the private sector had been formed to coordinate activities of all agencies involved in the export activities. Foreign exchange for the purpose of current account transactions of the balance of payments had been made convertible. income from exports had been exempted for income tax purposes. The duty drawback system for the import of raw materials for exportable commodities had been made more effective. other export promotion activities such as participation on international trade fairs, product development, product diversification and quality improvement of exportable commodities have been encouraged. The government had undertaken or planned to undertake export promotion activities for the following commodities: agricultural Commodities such as lentils, niger seeds, tea and coffee, ginger, cardamom, vegetable seeds, flower, silk and silk products, medicinal herbs, fruits etc.; industrial goods such as woollen carpets, readymade garments, leather

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and leather products, cotton products, woollen sweaters, woollen mufflers etc.; Traditional Handicraft Products etc.; Products of Cottage and Small industries and other Products such as computer software. The Trade Promotion Centre, established in 1971, had been working as the Secretariat of the nepal Trade Promotion Board, constituted under an order of the development Board act 2013. The primary objective of the Centre was to promote nepal’s export trade in particular and foreign trade in general. in 1995 amendments were made to the nepal Trade Promotion Board (Formation order) and the scope of the activities of the Centre was extended to import management. The Board was chaired by the Secretary of the Ministry of industry, Commerce and Supplies and included representation of the Ministries of industry, Commerce and Supplies, Finance, business associations and communities.

internal Policy affecting Foreign Trade in goods

industrial policy, including subsidy policies

86. The representative of nepal said that nepal did not provide direct payment of incentives to any industry. There were certain exemptions in terms of income tax, sales tax, excise duty and customs duties to the industries qualifying under the conditions stated in industrial enterprise act 1992. The purpose of the incentives was to ensure balanced industrial development both regionally and sector-wise. nepal had not compiled data on the revenue exempted by such incentives and on the identification of recipients. The following provisions governed the incentives provided:

(a) cottage industries are exempted from sales tax, excise duty and income tax;

(b) income tax in excess of twenty per cent is not levied on the income derived from any industries except industries utilizing tobacco as their basic raw material, and alcohol or beer producing industries;

(c) except for industries utilizing tobacco as their basic raw material, alcohol or beer producing industries and saw-mill and catechu industries, any industry using 80 or more than 80 per cent of indigenous raw material in its products and supplying all its manpower from among nepalese citizens are entitled to obtain a rebate at the rate of 10 per cent of the income tax;

(d) any national priority industry which constructs and operates road, bridge, tunnel, rope way, flying bridge, and manufactures and operates trolley buses and trams are entitled to a rebate of 50 per cent of the income tax on their income for ten years from the date of operation. other national priority industries such as agro and forest-based industries, engineering industry (producing agricultural and industrial machinery), industry manufacturing fuel saving or pollution control devices, solid waste processing

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industry, hospital and nursing home (only outside the Kathmandu valley), industries producing ayurvedic, homeopathic and other traditional medicine, industries producing crutch, seat belt, wheel chair stretcher and stick and so on to be used in aid of the disabled and orthopaedic, cold storage installed for the storage of fruits and vegetables, are entitled to get a rebate of 50 per cent of the income tax on their income for seven years from the date of operation;

(e) any industries except industries utilizing tobacco as their basic raw material, and alcohol or beer producing industries established in remote, undeveloped and underdeveloped areas are entitled to get a rebate of 30, 25, and 20 per cent of the income tax respectively and 35, 25 and 15 per cent of the excise duty respectively for a period of ten years from the date of operation;

(f) Fruit-based fruit processing and cider and wine industries with fixed assets up to nrs2.5 million, established in particular areas, are entitled to an excise duty and sales tax exemption for a period of ten years, and fruit based alcohol are entitled to excise duty and sales tax exemption for a period of five years. Such exemption could be extended for additional period of three years;

(g) if an industry diversifies itself through reinvestment, in the same or any other industry, and expands its installed capacity by 25 per cent or more, modernizes its technology or develops ancillary industries, it is entitled to a deduction of 40 per cent of new additional fixed assets from its taxable income;

(h) any industry investing in process or equipment, which has the objective of controlling pollution or which may have a minimum effect on the environment is entitled to reductions of up to 50 per cent from the taxable income for such investment;

(i) any industry is entitled to deduct 10 per cent of the gross profit from the taxable income on account of expenses related to technology, product development and efficiency improvement;

(j) no income tax is imposed on dividends earned out of the investment made in any industry;

(k) up to 5 per cent of gross income spent for the advertisement of the products or promotion services, hospitality and any other similar expenses is allowed to be deducted while assessing the taxable income;

(l) if an industry provides direct employment to 6 hundred or more than 6 hundred nepalese citizens round the year, an additional

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income tax rebate at the rate of 10 per cent for that year is granted in addition to other facilities;

(m) if any industry utilizes locally available raw materials, chemicals and packing materials etc. on which excise duty or sales tax or both are already imposed, the excise duty, sales tax or both shall be reimbursed to the industry utilizing such raw materials, chemicals and packing materials;

(n) no income tax is levied on the profits earned through export;

(o) an industry is entitled, for the purpose of the income tax, to deduct the amount of expenses incurred by it for the long-term benefit provided its workers and employees including housing, life insurance, health facilities, education and training.

(p) Subsidies in seeds, plants, irrigation pipes and pumping were provided by the respective line agencies. These subsidies, though small in quantity, were provided directly to the producer-farmers who use these products as inputs. only farmers were eligible for these subsidies.

87. Some Members of the Working Party said that they considered that the exemption from incomes taxes for profits earned through export, sales and excise tax exemptions for use of local raw materials, as well as the rebate of 10 per cent of the income tax for industries using eighty per cent or more local raw materials in their output were prohibited subsidies under article 3 of the Subsidies agreement. in their view this subsidy should be eliminated and notified under article 25. The representative of nepal said that as a least developed country, nepal should benefit from the special and differential treatment provided in article 27 of the agreement on Subsidies. The representative of nepal said that the income Tax act, 2000 had eliminated a number of rebates previously given by related legislation. For example, it had deleted the following provisions on income tax related facilities and concessions as provided for in the industrial enterprises act, 1992.

(a) exemption of income tax in excess of 20 per cent on the income derived from any industries other than the ones producing cigarettes, bidis, cigars, chewing tobacco, and industries producing other goods of a similar nature utilizing as their basic raw materials and alcohol or beer producing industries,

(b) exemption of a rebate at a rate of 10 per cent of the income tax for any industry using 80 or more than 80 per cent of indigenous raw materials in its products and supplying all its manpower from among nepalese citizens, except for cigarette, bidi, cigar, chewing tobacco, khaini industries and industries producing other goods of

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a similar nature utilizing tobacco as their basic raw material and industries providing alcohol or beer, and saw mill and catechu industries.

(c) a rebate of 50 per cent of the income tax of income earned by any national priority industry, which constructs and operates roads, bridges, tunnels, rope ways, flying bridges, etc. for a period of ten years from the date of operation.

(d) entitlement of an industry that diversifies itself through reinvestment in the same or expending its installed capacity by 25 per cent or more, modernizes its technology or develops ancillary industries to a deduction of 40 per cent of new additional fixed assets from its taxable income.

(e) Permission to capitalise pre-operation costs incurred by any industry in connection with skill development training.

(f) Permission to deduct up to five per cent of gross income spent for the advertisement of the products or promotion services, hospitality and other similar expenses, while assessing taxable income.

it had also repealed the provision contained in the Foreign investment and Technology Transfer act (FiTa), 1992 under which a foreign investor shall be levied income tax at the rate of 15 per cent only, on the income earned from a foreign technical as well as management service fee and royalty.

88. The representative of nepal said that as stated in the legislative action Plan reproduced in annex ii of this report, the industrial enterprises act, 1992 (amendment), the industrial enterprises regulations and the industrial Policy 1992 (amendment) would be amended to bring them into conformity with the WTo agreements on Subsidies and Countervailing Measures and on Trade related investment Measures. amendments had already been prepared, or would be prepared by the department of industry in June and august 2003 and March 2004. These amendments would be submitted by the Ministry of industry, Commerce and Supplies to the Council of Ministers in december 2003 and May 2004, respectively. nepal would identify subsidy measures incompatible with the WTo and these would be eliminated. endorsement and adoption by the Council of Ministers of the amendments to the acts and the regulations would be approved in February and May 2004. The Working Party took note of these commitments.

89. The representative of nepal confirmed that nepal would administer its subsidy programmes, including those provided for in the industrial enterprise act 1992, in full conformity with the WTo agreement on Subsidies and Countervailing Measures, including article 27.2. all necessary information on such programmes would be notified to the Committee on Subsidies and Countervailing Measures in

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accordance with article 25 of the agreement upon entry into force of nepal’s Protocol of accession. The Working Party took note of these commitments.

Technical regulations and Standards

90. The representative of nepal submitted the Check list of illustrative TBT issues circulated in document WT/aCC/nPl/5 and the following laws, “nepal Standards (Certification Mark) act, 1980” and “Standard Weights and Measures act, 1968”. These laws set a transparent system with the intervention of laboratories to carry out tests, provision for judicial review and compliance with the most favoured nation and national treatment obligations.

91. He said that the authority to determine standards in relation to any goods, process or services was the nepal Council of Standards (nCS). The Council was a government body chaired by Minister for industry, Commerce and Supplies and the members include, among others, the president of Federation of nepalese Chambers of Commerce, and representatives from Tribhuvan University. a Technical Committee under the nCS sets standards based on internationally defined parameters, national data and national requirements, among others. The participation in the Technical Committee currently included representatives of the concerned Ministries and governmental agencies, the private sector through the Federation of nepalese Chambers of Commerce and industry (FnCCi), Consumers Forum and the universities. The Council can invite specialists to its meetings.

92. The nepal Bureau of Standards and Metrology (nBSM) prepared preliminary drafts of the standards or technical regulations which were then submitted to the Technical Committee for review and amendment, if necessary. The nBSM elaborates all standards and technical regulations, except for health and food products and oversees all mandatory certification activities. The Ministry of Health through its department of drug administration, and the Ministry of agriculture through the department of Food Technology and Quality Control, are responsible for the formulation of standards and technical regulations based on international standards, when available, to guarantee the protection of health and food products, respectively. Foreign organizations do not currently participate in mandatory certification activities.

93. The decisions of the Technical Committee were circulated to concerned agencies to provide comments within 30 days. With the agencies recommendations or suggestions a final draft is produced by the nBSM. The final draft is sent to the national Council for Standards, who review it and, if necessary, introduce amendments and then the Council approves it. once approved, the standards or technical regulations are sent for publication and implementation. Technical regulations are published in the nepal gazette. Standards are published in booklet form. once standards were set, the government may make them mandatory technical regulations upon the recommendation of the ministry concerned e.g. Ministry of agriculture,

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Ministry of Health, Ministry of environment, and the consumers association. Such recommendations were currently made without seeking additional advice through the Technical Committee. There was a very limited number of technical regulations that applied basically to raw wool, cement, iron bars, mineral water, Cgi Sheets, dry Cell Battery, gi Wire and lPg cylinders. in the case of wool, it was necessary to guarantee the quality of nepalese carpet exports; in other cases the considerations related to consumer safety. The importation of plant and plant products had to meet the standards laid down by the division of the Plant Protection of the department of agriculture. The division examined samples of the non-food item before a permit is issued by the customs for import. nepal was a Corresponding Member of iSo and followed the standards prescribed by iSo. in elaborating national Standards, the nBSM follows international standards. national standards are based on iSo standards, standards of the British Standard institute, of the international electrical Committee, on the indian Standards, and if required on CodeX and eSTM Standards.

94. The representative of nepal said that currently technical regulations applied only to iron bar, cement, mineral water, wool, Cgi Sheets, dry Cell Batteries, gi Wire, and lPg cylinders, nepal did not currently accept as equivalent, certificates from third country certification bodies. With regard to standards, 596 product and testing methods had been approved to date. another 200 were in the process of drafting. Most nepalese national Standards are based on international standards. if there are no international standards then the nBSM will elaborate the national standard according to the country’s requirements. The ratio of standards based on international standards is 90 per cent.

95. With reference to the quality certification system, the representative of nepal said that the national Certification Mark (nCM) currently in use consists of the authorization granted by the nBSM, upon request to any company producing goods for which technical regulations and standards exist in nepal, to use a distinctive sign in their products which means that the product complies with the required regulations or standards. in order to grant authorization to use the distinctive mark in any product, the nBSM conducts inspections, testing, and sets other requirements such as to have in-house laboratories, necessary skill manpower and quality manuals, that the producer has to fulfil in order to receive the authorization. after authorization has been given, the nBSM undertakes frequent inspections and testing in the industries and in the market. To date quality certification marks have been approved for 111 companies, covering 32 products. The products and number of companies that have received approval are listed in annex V of this report.

96. The representative of nepal recognized that amendments would have to be made to the standards regime including the nepal Standards (Certification Mark) act 1980 and the regulations 1982 (amendment) to bring them into full compliance with the WTo agreement on Technical Barriers to Trade. nepal also intended to review its technical regulations in light of WTo provisions, and was seeking technical assistance

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to help with this work. as a first step, in June 2003 the Ministry of industry, Commerce and Supplies established an enquiry point in the nepal Bureau of Standards and Metrology. a timetable for the enactment of legislation that implements the WTo agreement on Technical Barriers to Trade in nepal’s legal regime was provided in the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1 and in the action plan circulated in document WT/aCC/nPl/13. amendments would be prepared in June 2004 and September 2005 and would be submitted to the Council of Ministers. These amendments would be endorsed and adopted by the Council of Ministers by 31 January and 31 december 2005. Having regard to the action plan, nepal would implement fully the provisions of the agreement on Technical Barriers to Trade, including compliance with the Code of good Practice, by 31 december 2006.

97. in light of these plans, the representative of nepal requested that the Working Party grant a transitional period from the date of its accession until 1 January 2007 for implementation of the WTo agreement on Technical Barriers to Trade, to allow nepal to obtain and utilise technical assistance to fully implement the obligations of the agreement. during this period, an enquiry point would be brought into operation at an early stage and nepal would provide national non-discriminatory and MFn treatment to all imports in the application of technical regulations, standards and conformity assessment procedures. Measures in place already consistent with the provisions of the agreement would not be subject to transitions, and nepal would ensure that any changes made in its laws, regulations and practice during the transition period would not result in a lesser degree of consistency with the provisions of the agreement than existed on the date of accession. existing technical regulations would be notified to the Committee on Technical Barriers to Trade and reviewed for conformity to WTo requirements. any standards, technical regulations, and conformity assessment procedures adopted during this period would be developed in conformity with the provisions of the agreement. nepal would fully participate in the work of the Committee on Technical Barriers to Trade. He added that nepal would seek out all available technical assistance including under article 11 of the TBT agreement to ensure that its capacity to fully implement the agreement upon expiration of the transition period is assured. in response to requests from delegations for more specificity, the representative of nepal presented an action Plan setting out details of the steps nepal would take in order to achieve this objective and a timetable for each step (Table 5).

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Table 5: action Plan for implementation of the agreement on Technical Barriers to Trade


establishment and operation of a single Contact Point for information (“enquiry point”)

nepal Bureau of Standards and Metrology (nBSM) P o Box 985 Balaju Kathmandu, Kingdom of nepal Tel./Fax: +977 1 435 0689 email [email protected]


identification --of the authority responsible for notifications and publications and other internal procedures to ensure transparency obligations are met on an ongoing basis (e.g., the nepal Bureau of Standards and Metrology (nBSM) --of the publication or website where notices of standards, technical regulations and conformity assessment procedures will appear

Prior to 1 July 2004

Strengthening of documentation and networking system and training of personnel involved on TBT notification and publications

approval of amendments to nepal Standards act

initiation of prior publication for comment of all technical regulations, standards, and conformity assessment procedures in the identified journal or website

Prior to 1 July 2005

approval of amendment of nepal Standards regulations

establishment of procedures for the development and application of technical regulations in conformity with WTo and compliance with Code of good Conduct for establishment of standards

Submission of Statement on implementation (g/TBT/1)


Upgrading existing testing and calibration facilities

Completion of review and adjustment of technical regulations and procedures in accordance with WTo requirements

establishment of scheme of registration and certification of products

establishment of --a system of nondiscriminatory procedures for the recognition of conformity assessment; and --a system for mutual recognition or accreditation (articles 5 and 6)

Full implementation of the WTo agreement on Technical Barriers to Trade


98. The representative of nepal confirmed that nepal would progressively implement the agreement on Technical Barriers to Trade in accordance with the action Plan in Table 5 and with the understanding that during this period the scope of implementation of other aspects of the agreement, as described in paragraph 97 would

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be applied by nepal. nepal would implement fully the provisions of the agreement on Technical Barriers to Trade, including compliance with the Code of good Practice by 1 January 2007. The Working Party took note of these commitments.

Sanitary and Phytosanitary Measures

99. The representative of nepal said that the export and import of plant and plant materials such as seeds, saplings, and seedlings was subject to phytosanitary measures at the border checkpoints and at the Tribhuvan international airport, Kathmandu in accordance with the Plant Protection act, 1972 and Plant Protection rules, 1974. These products were examined for the possible presence of any obnoxious or restricted pathogens, pests, and weed seeds on the basis of the items listed in the act and rules which are periodically updated following the recommendations of the regional and international Plant Protection conventions and the findings of national surveys and surveillance. Check posts were under the jurisdiction of a central level Plant Quarantine Section of the Plant Protection directorate in the department of agriculture. The Contagious or infectious disease act, 1963 authorized the government to intercept any person, animal, animal products, and feeds suspected of carrying an infectious disease or agent at entry points. Such a person and animal may be hospitalized or isolated for “examination and control” as per the act. animal quarantine check posts located at the border areas were coordinated and administered by the animal Quarantine Section of the animal Health directorate at the central level. a separate animal Health and livestock Services act was enacted and enforced in 2000 that governs the animal Quarantine. Minimum standards or specifications had been fixed for certain categories of agricultural products (food products—processed and unprocessed) and animal feeds under the Food act, 2023 (1967) and Food rules, 2027 (1970) and the animal Concentrates act, 1976. The export and import of such products must comply with the fixed standards. The responsibility to implement these laws lies with department of Food Technology and Quality Control in association with the local administration.

100. The Pesticides act, 1991 and Pesticides rules, 1994 regulate the export and import of pesticides with a view to protect the environment and ensure sanitary measures. These acts and rules authorize the Ministry of agriculture and Cooperatives to ban and/or restrict any PiC pesticides that are potentially hazardous to health. With respect to drug Policy and regulatory Service, the department of drug administration had the responsibility of implementing the drug act, 2035 (1978) and the drugs registration regulation, 2038 and the drugs examination, inspection, regulation, 2040. The department with the aid of various regulations has been implementing the provisions of the act. in accordance with the objectives of the “Health for all” and to improve and manage coordination among the governmental, non-governmental and private organizations involved in the activities related to drug production, import, export, storage, supply, sales, distribution, quality assessment, regulatory control, rational use, and information flow, the national drug Policy

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1995 had been implemented. it puts emphasis on the maintenance, safeguarding and promotion of the health of people by making the country self-reliant in drug production; ensuring the availability of sale of effective, standard, and quality drugs at affordable price in quantities sufficient to cover the needs of the country, and to cover effectively all the drug-related activities including production, import, export, storage, safety, supply and distribution. Medicines imported into the country should comply with the standards laid down by the Ministry of Health.

101. in response to questions, the representative of nepal submitted the Check list of illustrative SPS issues (WT/aCC/nPl/6). With reference to the Plant Protection act, 1972 and the Plant Protection regulation, 1975, he said that the act and regulations cover the essential legal framework to address all the requirements of enforcing phytosanitary measures for import and export of agricultural commodities. The Seed act, 1998 required only notified seeds to be exported or imported to help maintain seed quality.

102. at the request of Members of the Working Party, the representative of nepal provided the Pesticides act, 1991, and Pesticides regulation, 1994.He said that considering the shared responsibility between the exporting and importing country in protecting health and the environment from harmful effects of listed pesticide and industrial hazardous chemicals, in accordance with the prior informed consent procedures (PiC), nepal bans all the PiC listed pesticides and chemicals (22 pesticides and 5 industrial chemicals) except Methyl Parathion and Monocrotophos because there were no alternatives for these products. The importation of these products was under active review. nepal had participated in the Plenipotentiary Conference in rotterdam (September 1998) for signing the PiC Convention.

Table 6: PiC list – Pesticides and industrial Chemicals

Pesticides industrial Chemicals2,4,5, - T Crocidolitealdrin Polybrominated biphenyl (PBB)Captafol Polychlorinated biphenyl )PCB)Chloroenzilate Polychlorinated trephines (PCT)Chlordane Trist (2, 3 dibromopropy1) phosphateChlordimeformddTdieldrindinsoeb1, 2 – dibromoethane (edB)FluoroacetamideHCH

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103. With reference to international organizations, the representative of nepal said that nepal adheres to the international Plant Protection Convention (iPPC) executed and administered by Fao. nepal was a member of the asia Pacific Plant Protection Commission (aPPPC). nepal had adhered to the Fao “Plant Protection agreement for the asia and Pacific region” on 5 august 1965. aPPPC was a regional organisation adhering to iPPC charters for harmonizing the implementation of phytosanitary measures. Through aPPPC, nepal was trying to streamline and scientifically build land border quarantine procedures considering that nepal is geographically landlocked. The animal Health and livestock Service act 1998, Slaughter House and Meat inspection act 1998 and the Veterinary Council act 1998 were in force. nepal was a member of the oie; Codex alimentarius and asia Pacific Plant Protection Commission. He stressed that nepal was fully committed to adopt all the sanitary measures in relation to equity, transparency, harmonization, adoption of regional conditions, risk assessment, and control inspection and approval procedures, and also for the administration and implementation with all the WTo member countries. even though there were constraints in terms of technical expertise and resources to fulfill these commitments, nepal would give priority to the strengthening of the plant and animal quarantine service in the country to make sanitary and phytosanitary measures consistent with WTo obligations.

104. in response to questions concerning the national drug Policy, the representative of nepal said that the measures the department of drug administration (dda) had taken to achieve self-sufficiency in drug production were as follows: provide technical inputs in drug production and quality assurance; lower custom duties on the importation of raw materials, machinery and analytical instruments at one per cent of the invoice value; lowered the income tax for five years; and provided foreign currency needed for purchasing raw materials and machinery. There were some 25 pharmaceutical companies producing about 20 per cent of the national demand for drugs. For the purpose of protecting health, the administration had formulated and implemented different regulations with respect to importation, exportation, supply and distribution of pharmaceutical products in nepal. The enforcement of industrial

PesticidesHeptachlorHexachlorobenzonelindaneMercury compoundsPentachlorophenolCertain formulations of metlamidophosMethyl-parathionMonocrotophosParathionPhosphamidon

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property rights in respect of pharmaceuticals was the responsibility of the department of industry (doi).

105. The representative of nepal recognized that amendments would have to be made to the sanitary and phytosanitary regime including the Plant Protection act, 1972 (amendment), the Plant Protection regulation, 1975 (amendment), the Seed act, 1998 (First amendment) and to other legal texts to bring them into full compliance with the WTo agreement on Sanitary and Phyto-Sanitary Measures. as a first step, the Ministry of agriculture and Cooperatives would establish an enquiry point by 1 January 2004. a timetable for the enactment of legislation that implements the WTo agreement on Sanitary and Phyto-Sanitary Measures in nepal’s legal regime was provided in the legislative action Plan circulated in document WT/aCC/nPl/10/ rev.1 reproduced in annex ii of this report, and in the action plan circulated in document WT/aCC/nPl/12. amendments prepared and approved during the period 2004-2005 would be submitted to the Council of Ministers. These amendments would be endorsed and adopted by the Council of Ministers in august 2004, april 2005 and december 2005. Having regard to the action plan, nepal would implement fully the provisions of the agreement on Sanitary and Phytosanitary Measures, by 31 december 2006.

106. in light of these plans, the representative of nepal requested that the Working Party grant a transitional period from the date of its accession until 1 January 2007 for implementation of the WTo agreement on Sanitary and Phytosanitary Measures, to allow nepal to obtain and utilise technical assistance to fully implement the obligations of the agreement. during this period, existing measures would be applied on a non-discriminatory basis, i.e. providing for national treatment and MFn treatment to all imports. Measures in place already consistent with the provisions of the agreement on Sanitary and Phytosanitary Measures would not be subject to transitions, and nepal would ensure that any changes made in its laws, regulations and practice during the transition period would not result in a lesser degree of consistency with the provisions of the agreement than existed on the date of accession. Technical regulations and other measures adopted during this period would be developed in conformity with the provisions of the agreement. Priority would be given to the establishment of a functioning enquiry point and the notification of all of nepal’s SPS measures to the Committee on Sanitary and Phytosanitary Measures. He added that nepal would seek out all available technical assistance including under article 9 of the SPS agreement to ensure that its capacity to fully implement the SPS agreement upon expiration of the transition period is assured. nepal would fully participate in the work of the Committee. in response to requests from delegations for more specificity, the representative of nepal presented an action Plan setting out details of the steps that still remained to be taken in order to achieve this objective and a timetable for each step (Table 7).

107. The representative of nepal confirmed that nepal would progressively

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implement the agreement on Sanitary and Phytosanitary Measures in accordance with the action Plan in Table 7 and with the understanding that during this period the scope of implementation of other aspects of the agreement, as described in paragraph 106 would be applied by nepal. nepal would implement fully the provisions of the agreement on Sanitary and Phytosanitary Measures by 1 January 2007. He also confirmed that nepal would consult with WTo Members upon request if they deemed that any measures applied during the transition period affected their trade negatively. The Working Party took note of these commitments.

Table 7: action Plan for implementation of the agreement on Sanitary and Phytosanitary Measures

action implementation dateFood act 1966 – Codex alimentarius Completedestablishment and operation of a single Contact Point for information (“enquiry point”) (article 7 and annex B:2) Prior to 1 January 2004acquisition of equipment and training of SPS enquiry point personnel (article 7 and annex B:2) Prior to 1 January 2005

approval or amendments to:Plant Protection act 1972Seed act of 1988

designation of authority responsible for making notifications to the WTo and ensuring transparency obligations are met on an ongoing basis

review of all existing regulations and new amendments to ensure regulations are based on risk assessments and sufficient scientific evidence.

Upgrading of human resources with special emphasis on quarantine management, meat inspection, veterinary investigation and animal disease risk analysis.

declaration of pest or disease-free areas and areas of low pest or disease prevalence (article 6 and annex a:6 and a:7)

Prior to 1 July 2005approval or amendments to:Plant Protection regulations 1975Membership in the international Plant Protection Convention

implementation of Publication and notification procedures including a process to take comments into account without discrimination (annex B:1,3, 5 and 10)initial notification of legislation and regulations to WTo Prior to 1 January 2006development of SPS guidelines and protocols Prior to 1 July 2006

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action implementation dateUpgrading and strengthening of quality control unity, laboratory, quarantine system and field veterinary system

opening new quarantine check post and development of pre and post quarantine facilities

Harmonization with international standards, guidelines, and recommendations (article 3)

Control, inspection and approval procedures for all SPS measures

Full implementation of the WTo agreement on Sanitary and Phytosanitary Measures Prior to 1 January 2007

Trade-related investment Measures (TriMs)

108. The representative of nepal confirmed that nepal would amend the trade related investments measures regime included in the Foreign investment and one Window Policy, 1992 (amendments), industrial Policy, 1992 (amendment), industrial enterprises regulations, industrial enterprises act 1992 (amendment), Foreign investment and Technology Transfer regulations and the Foreign investment and Technology Transfer act 1992 (amendment) to ensure that there was full compliance with the WTo agreement on Trade related investment Measures. a timetable for the enactment of this legislation was provided in the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1. Policies would be prepared by the department of industry by august 2003 and adopted by the Ministry of industry, Commerce and Supplies by September 2003. draft bills and regulations would be prepared by the department of industry and would be submitted by the Ministry of industry, Commerce and Supplies to the Council of Ministers. The expected approval dates for all the legislation would be May 2004.

109. The representative of nepal confirmed that nepal had carefully reviewed the relevant legislation and was unable to find any measures currently in place inconsistent with the agreement on Trade-related investment Measures. He added that these measures would be notified to the Committee on TriMs upon accession as part of nepal’s initial WTo notification. The government of nepal would ensure that, from the date of accession, no trade-related investment measures would be introduced unless in conformity with the requirements of the agreement, including article 4. The Working Party took note of these commitments.

State trading

110. The representative of nepal said that the State-owned enterprises in nepal were independent entities under the general supervision of the concerned ministries. They had been established essentially with the objective of ensuring adequate supply of raw materials and essential goods. These enterprises operated on commercial

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considerations and provide equal opportunities for all suppliers as prescribed in gaTT 1994 article XVii and in the Understanding on the interpretation of article XVii of gaTT 1994. The government had made statutory provisions for transparency and cost-consciousness in the operations of these enterprises. For example, they were obliged to call for at least three quotations for procurement and adopt competitive bidding for any contract. The information concerning the following State owned enterprises should not in any way be interpreted as considering them State-trading enterprises with exclusive rights or privileges:

- nepal Food Corporation mainly procures food grains to stabilize prices and supply of food grains in deficit area.

- national Trading limited imports essential goods such as cement, sugar, clothes, and iron rods with a view to stabilize price.

- nepal Coal Company imports coal for manufacturing firms. (underway to liquidation)

- nepal Transit and Warehouse Company functions as an autonomous body responsible for clearing and forwarding cargo.

nepal oil Corporation, which imports petroleum products and enjoyed exclusive rights to import petroleum products excluding lubricants, and the Salt Trading Corporation, which imports salt and sugar, have special privileges and would be notified under article XVii of gaTT 1994.

111. The representative of nepal confirmed that upon accession nepal would notify and provide information on the activities of nepal oil Corporation and Salt Trading Corporation in accordance with article XVii of the gaTT and the Understanding on that article nepal would apply its laws and regulations governing the trading activities of enterprises with special or exclusive privileges and would otherwise act in full conformity with the provisions of the WTo agreements, in particular article XVii of the gaTT 1994 and the Understanding on that article; and article Viii of the gaTS. The Working Party took note of these commitments.

Free zones, special economic areas

112. The representative of nepal said currently there were no free zones in nepal. if nepal establishes free zones, as a WTo Member, nepal would apply the WTo agreements and nepal’s Protocol in the zones, and the application of normal customs formalities to goods produced in these areas when they enter the rest of nepal, including the application of tariffs and taxes. The Working Party took note of this commitment.

government Procurement

113. The representative of nepal said that in the fiscal year 1997/98 government procurement had been nrs 16.2 billion (US$238 million). The rules on government procurement require publication of tender notices in national dailies at least twice for

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procurements amounting more than nrs1 million. in case of global tender, tender notice is circulated to the foreign diplomatic missions situated in nepal. There was no offset policy. The procurement of certain products was not reserved for local industry but priority was given to nepalese products if the price difference with foreign products was not above 10 per cent.

114. in response to questions concerning participation in the agreement on government Procurement, the representative of nepal said that, at the moment, nepal did not intend to take part in Plurilateral Trade agreements such as the agreement on government Procurement. However, consideration would be given to the possibility and ability to seek observer status.

agricultural policies

115. The representative of nepal said that agriculture was the dominant sector of the nepalese economy, giving employment to about two-thirds of the total population and contributing more than 40 per cent to gdP. This was basically a private sector activity in which the government played a supportive and facilitating role to enhance agricultural production and productivity. nepal imports significant quantities of high value agricultural products such as fruits, vegetables, livestock, and processed products mainly from india. The import of grains, however, is made only during drought years. nepal’s major export items comprise basic agricultural products such as maize, mustard, ghee, ginger, pulses (lentil and gram), broom grass, live animals, wheat flour, oil cake, jute, fresh vegetables and vegetable seeds, orthodox tea, niger seeds, hide and skin, rice bran, vegetable oil, spices, cardamom, and fruits. The total value of agricultural production was approximately nrs349,064 million. The total value of import of agricultural commodities was nrs6,330.3 million in the fiscal year 1996/1997. nepal was a net food-importing country. in the fiscal year 1997/98, nepal had allocated nrs. 600 million (US$10 million approx.) for subsidy on the import and transport of chemical fertilizers and US$12.7 thousand have been allocated to subsidize for soil tests to be carried out on the request of farmers to establish the best crop for their plant of land. There were no specific incentives for the export of agricultural commodities. The government facilitates exports by providing market information and easy access to foreign exchange as a general policy. For this purpose, the government provides to exporters technical facilities to open foreign currency accounts out of the income generated from exports. restrictions on import of agricultural products were as follows.

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Table 8: restriction on import of agricultural Products

items reasonCitrus sapling/ plants To prevent citrus decline syndrome as per PP act 1972Bread fruit plants To prevent pingalap disease as per PP act 1972

Potato tuber from indian wart-affected areas

To prevent wart disease as per PP act 1972

lathyrus sativus Because of high content of Boaa (B-n-oxalyl/amino-l-alanine) responsible for causing lathyrosis diseases (published in NepalGazette,1992)

BVo containing drinks For health reason (Food act, 1967)ddT, Methyl parathion For reasons of health and environment protection (Public

enterprises act, 1991)Beef For religious reasons

116. The representative of nepal stated that agricultural producers are assisted by government programmes in areas such as support for general research relating to different products, extension services, marketing and promotion activities including agriculture market information, natural disaster relief through crop subsidies, loans and grants for irrigation, natural disaster relief through crop subsidies, other infrastructure support for small farmers, urea transport subsidies for remote areas, subsidies for tea promotion and dairy development grants. He indicated that nepal does not have agricultural export subsidies. information concerning domestic support and export subsidies in the agriculture sector was circulated in document WT/aCC/SPeC/nPl/2/rev.1 and Corr.1, where the Base Total aMS was below the deminimis percentage of 10 per cent.

117. nepal’s commitments on domestic support and export subsidies for agricultural products are contained in the Schedule of Concessions and Commitments on goods (document WT/aCC/nPl/16/add.1) annexed to nepal’s draft Protocol of accession to the WTo.

Policies affecting Foreign Trade in other Sectors

118. The representative of nepal said that the Tea and Coffee development Board, and the dairy development Board, which were composed of representatives of the public and private sectors, had the basic function to propose policies for the development of these activities in nepal and to conduct product-related research. Budget allocations were to finance the activities of the Boards. no direct support is given to the farmers. nepal was undertaking a Seeds Sectors Project, which aims to improve seed quality. The activities defined under this project are carried out by the Seeds Committee composed of representatives of the public and private sectors. Budget allocations were to finance the activities, mainly seed research and improvements of the Seeds Committee. There was no direct support to the farmers. The principal function of the Carpet and Wool development Board was to make the

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necessary arrangements for the development of production and the quality of carpets in nepal. The Board did not give any kind of financial assistance.

Textiles regime

119. The representative of nepal confirmed that the quantitative restrictions on imports maintained by WTo Members on textiles and clothing products originating in nepal that were in force on the date prior to the date of accession of nepal to the WTo should be notified to the Textiles Monitoring Body (TMB) by the Members maintaining such restrictions and would be applied for the purposes of article 2 of the agreement on Textiles and Clothing. Thus, for the purposes of nepal’s accession to the WTo, the phrase “in force on the day before the entry into force of the WTo agreement” contained in article 2.1 of the agreement on Textiles and Clothing shall be deemed to refer to the day prior to the date of accession of nepal to the WTo. To these base levels the increase in growth rates provided for in article 2.13 and 2.14 of the agreement on Textiles and Clothing shall be applied, as appropriate, in the agreement on Textiles and Clothing from the date of nepal’s accession such base level and growth rate coming to an end upon the termination of the agreement on Textiles and Clothing. The Working Party took note of these commitments.

Trade-related intellectual Property rights (TriPS)

general

industrial Property Protection

120. The representative of nepal said that the policy objective in the area of intellectual property was to provide effective and adequate protection to all categories of intellectual property in conformity with the provisions of the agreement on Trade-related aspects of intellectual Property rights. detailed information concerning the Check list of issues for the implementation of the TriPS agreement had been circulated in document WT/aCC/nPl/7. intellectual property protection was provided by the Patent, design, and Trademark act, 1965. nepal was preparing the new industrial Property (Protection) act, which would incorporate all the substantive provisions of the TriPS agreement. it would cover all categories of industrial property rights under Sections 2 through 7 of Part ii of the agreement, and would incorporate the basis for an adequate enforcement thereof, and be promulgated by december 2005. For the protection of copyright, nepal had enacted the Copyright act, 2002. This act will be amended as necessary. additional information concerning the implementation of the TriPS agreement is reproduced in the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1 and in the action plan circulated in document WT/aCC/nPl/14 and are described in this section of the Working Party report.

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agencies responsible for Policy Formulation and implementation

121. The representative of nepal said that the formulation of industrial property policy and necessary regulations was under the purview of the Ministry of industry, Commerce and Supplies. The implementation and execution of policy and regulations was the responsibility of the department of industry (doi) within the Ministry. The office of the Copy-right registrar was the authorized agency for registering copyrights and hearing complaints. The decisions of the registrar could be appealed to the appellate Court.

Membership in international intellectual Property Conventions

122. The representative of nepal stated that nepal had been a member of the World intellectual Property organization (WiPo) since 4 February 1997 and the Paris Convention since 22 June 2001. nepal would join the Berne Convention, by december 2005, and join the rome Convention and the Treaty on intellectual Property by 2006. nepal would also look at other WiPo and iP related Conventions, eg. geneva Phonograms Convention, UPoV 1991, WiPo Copyright Treaty and the WiPo Performances and Phonograms Treaty, in terms of national interest and explore the possibility of joining them in the future, as appropriate.

application of national and MFn treatment to foreign nationals

123. The representative of nepal said that national and MFn treatment was granted to all foreign nationals. national and foreign citizens had to register the brand, trademarks, patent and art with the responsible agency. a member noted that Section 13 of the nepal Copyright act, 2002 fails to provide protection for foreign copyright works, sound recordings or performers. The representative of nepal committed to amending this provision so that the Copyright act, 2002 would provide full national treatment and MFn treatment upon accession. nepal also committed to amending its fee schedule, described in paragraph 124 below, to remove any discrimination between domestic and foreign nationals for fees charged to applicants upon accession.

Fees and taxes

124. The representative of nepal said that there were no taxes on intellectual property. Fees were nominal but foreigners had to pay double the rates indicated below, except for penalty charges, in convertible foreign currency. a member noted that TriPS national treatment obligations (TriPS article 3) prohibits discrimination between foreign and domestic applicants with regard to fees, and suggested that it would be permissible, however, to adopt a fee schedule that provided discounts to individual applicants, or even small and medium-sized enterprises (SMes), as opposed to large corporations, so long as the discounts were not based on the nationality of the applicants.

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Table 9: registration and renewal Fees

S. no. Particulars of Fees Patent(nrs.)

design (nrs.)

Trademark (nrs.)

1. application 1,000 500 5002. application amendment 200 200 2003. registration 5,000 2,000 1,5004. Transfer of ownership 2,500 1,000 7505. endorsement and recording

other than Transfer of ownership 1,000 500 500

6. details of registration 500 500 2007. opposition and Case Filing 500 200 2008. Copy of registration Certificate 1,000 500 5009. renewal (annual rate)

a. For the First Term b. For the Second Term c. Perpetual annual rate

2,000 4,000 -

400 800 -

- - 200

Substantive standards of protection, including procedures for the acquisition and maintenance of intellectual property rights

Copyright protection

125. The representative of nepal said that the Copyright act 2002 repealed the Copyright act 1965 to comply with the provisions of the TriPS agreement and the Berne Convention. as noted in paragraph 120 above, if nepal received the necessary technical assistance, a Copyright information Center would be established in december 2004.

Trademarks, including service marks

126. The representative of nepal said that in accordance with the legislative action Plan, in 2005 the Patent, design and Trademark act, 1965 amended in 1987, would be replaced by a new industrial Property (Protection) law consistent with the TriPS agreement. at present any person wishing to have trademark of his business registered should submit to the department of industry an application according to the specimen form indicated in Schedule i(c) of the act, along with four copies of such trademark. after completing this process the department would register such trademark in the name of the applicant and then issue a trademark certificate. if the trademark filed for the registration was considered to hurt the prestige of any individual or institution, or adversely affect public conduct or morality, or undermine the national interest, or the reputation of the trademark of any other person, or if the proposed trademark was found to have already been registered in the name of another person, the registration could be denied. Service marks were also subject to the same rule. The act provides for exclusive rights for the person who has registered the trademark or service mark. Trademarks and service marks were initially registered

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for a period of seven years, and could be renewed for an indefinite number of years after every seven-year interval.

geographical indications, including appellations of origin

127. The representative of nepal said that the present legislation did not cover geographical indications. in accordance with the action plan on the implementation of the TriPS agreement reproduced in Table 10 of this report, the protection of geographical indications would be included when drafting the new act.

industrial designs

128. The representative of nepal said that the industrial designs were covered by the Patent, design and Trademark act, 1965. as indicated in the action plan on the implementation of the TriPS agreement, the act would be brought into conformity with the provisions of the TriPS agreement by the industrial Property (Protection) act under preparation. Under the present legislation, any person wishing to protect the design of any article should submit an application to the department of industry, which would register the design in the name of applicant and issue a certificate. in case such design hurts the prestige of any individual or institution, or adversely affects public conduct or morality, or undermines the national interest, or in case such design had already been registered in the name of any other person, the registration could be denied. industrial designs were originally registered for a period of five years and could be renewed for two more terms at an interval of five years.

Patents

129. The representative of nepal said that patents designs were covered by the Patent, design and Trademark act, 1965. as indicated in the action plan on the implementation of the TriPS agreement, the act would be brought into conformity with the provisions of the TriPS agreement by the industrial Property (Protection) act under preparation. The representative of nepal declared that, as a WTo Member, nepal would be entitled to the flexibilities provided in the doha declaration on the TriPS agreement and Public Health. Under the present legislation, any person wishing to obtain exclusive rights over an invention should register a patent in the department of industry by filing an application. Upon its receipt, the department would conduct investigations or studies to ascertain whether the subject matter mentioned in the application was an invention and thereafter decide whether or not to register a patent. Patents were available for all kinds of products and processes that fulfill the patentability requirements without any discrimination as to the technological field or invention. The title of the patentee to the patent registered under the act remained valid for a period of seven years at a time, with a possibility of two renewal periods of seven years. The patent holder had the exclusive right to transfer or licence a patent and to request the third person to stop infringement, and could claim the compensation. The current legislation did not include provisions for the protection of prior user rights nor for compulsory licensing.

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Plant variety protection

130. The representative of nepal said that the present legislation did not cover the protection of plant varieties. in accordance with the action plan on the implementation of the TriPS agreement, the protection of plant varieties would be included in the new Plant Variety Protection act to be promulgated by december 2005. The drafting of the Plant Variety Protection act was not yet initiated, however it would be intended to protect the rights of related stakeholders in accordance with the needs of the country. This law would be a separate free-standing act.

layout designs of integrated circuits

131. The representative of nepal said that the present legislation did not cover the protection of layout designs of integrated circuits. in accordance with the action plan on the implementation of the TriPS agreement, the protection of layout designs of integrated circuits would be included in the new industrial Property (Protection) act to be promulgated by december 2005.

requirements on undisclosed information, including trade secrets and test data

132. The representative of nepal said that the present legislation did not cover the protection of undisclosed information including trade secrets and test data. in accordance with the action plan on the implementation of the TriPS agreement, the protection of undisclosed information including trade secrets and test data would be included in the new industrial Property (Protection) act to be promulgated by december 2005.

enforcement

133. The representative of nepal recognized that amendments would have to be made to the enforcement regime concerning intellectual property rights to bring into conformity with the provisions of the TriPS agreement with respect to civil and judicial procedures and remedies, provisional measures, administrative procedures and remedies, special border measures, criminal procedures, etc. To this effect the administration of Justice act, 1991, appellate Court rules, 1972, Summary Procedures act, 1972, and the Patent, design and Trademark act, 1965 and other legal texts would be modified to bring them into compliance with the WTo agreement on TriPS, as indicated in the action plan on the implementation of the TriPS agreement. as a first step, in 2004 the Ministry of industry, Commerce and Supplies would organize the training of personnel, customs officials, police, judges and lawyers through technical assistance.

134. The representative of nepal said that a timetable for the enactment of legislation that implements the WTo agreement on TriPS in nepal’s legal regime was provided in the legislative action Plan circulated in document WT/aCC/nPl/10/rev.1 and in the TriPS implementation action Plan circulated in document WT/aCC/nPl/14. new legislation or amendments with regard to legal texts such

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as the Plant resources, the access to genetics resources act, and the industrial Property Protection act prepared during the period 2003-2005 would be submitted to the Council of Ministers. These amendments would be endorsed and adopted by the Council of Ministers in the period 2003-2005. nepal would implement fully the provisions of the agreement on TriPS by 31 december 2006.

135. Having reviewed nepal’s action Plan for compliance with the requirements of the TriPS agreement, a Member sought a realistic plan laying out the measures that nepal would take over time to bring its regime into compliance with specific provisions of the TriPS agreement as soon as possible. The plan would constitute an understanding between nepal and the Working Party on how nepal would use the transition period, and form a blueprint for the technical assistance making compliance possible within the timeframe contemplated. nepal should also provide specific assurances on its application of measures covered by the TriPS agreement during any transition period approved by the Working Party. TriPS-consistent measures already in place should not be subject to transitions, and articles 3, 4 and 5 of the TriPS agreement, providing for inter alia national treatment and MFn treatment, should apply from the date of accession. Moreover, nepal should not allow production of goods or works inconsistent with the substantive provisions of the TriPS agreement during the transition period. Some members noted that a number of these proposals would create implementation difficulties for nepal during their transition period and did not share the views expressed above.

136. The representative of nepal thanked the Working Party members for their support and for their pledges of technical assistance. For the reasons given above, the government of nepal requested that the WTo grant a transitional period to 31 december 2006 to obtain technical assistance and equip the administration to implement fully the obligations of the TriPS agreement. The representative of nepal confirmed that should a transition be granted for the implementation of the WTo agreement on TriPS, his government was prepared to undertake the following commitments: during the transition periods in the action Plan for full implementation of the TriPS agreement, nepal will fully apply articles 3, 4 and 5 of the agreement that provide for, inter alia, national treatment and MFn treatment under current legislation in place. To this end, nepal would amend the Copyright act, 2002 and the fees charged to applicants to ensure full national and MFn treatment upon accession. nepal will also ensure that any change made in its laws, regulations and practice during this period will not result in a lesser degree of consistency with the provisions of the TriPS agreement.

137. The representative of nepal further confirmed that, should a transition be granted, his government would ensure that existing rates of infringement would not significantly increase and that any infringement of intellectual property rights would be addressed immediately in cooperation with the assistance from affected right holders. He added that nepal would seek out all available technical assistance to ensure that

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its capacity to fully enforce its TriPS-consistent legal regime upon expiration of the transition periods is assured and that nepal would make available TriPS legislation in draft and promulgated form to the WTo Secretariat for circulation to interested WTo Members. in response to requests from delegations for more specificity, the representative of nepal presented an action Plan in Table 10 setting out details of the steps that still remained to be taken in order to achieve this objective and a timetable for each step.

Table 10: action Plan for implementation of the agreement on Trade related aspects of intellectual Property Protection


approved legislation:--Copyright act, 2002--Patent, design, and Trademark act, 1965--administration of Justice act, 1991--appellate Court rules, 1972--Summary Procedures act, 1972

Participation in:-WiPo (since 1997)-Paris Convention (since 2001)

Completed

establish MFn and national treatment in all areas covered by TriPS, in particular in the following areas:-- extension in the Copyright act, 2002 of protection to foreign works on a full national treatment basis; and -- the elimination of discrimination in fees charged foreign vs. domestic applicants.

Upon accession

establishment and Strengthening nepal Copyright registrar office no later than 1 January 2005

establishment of Trademark information Centre/industrial design information Centre/industrial Patent information Centre/and layout-designs information Centre


approval of: industrial Property (Protection) act approval of Plant Variety Protection actParticipation in: -Berne Convention -rome Convention -Treaty on intellectual Property in respect of integrated Circuits


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Training of personnel involved in copyrights protection, trademarks protection, protection of industrial design, protection of patents, protection of undisclosed information, customs officials and police

orientation of judges and lawyersComputerization and networking of Patent office

Computerization of intellectual Property officereorganization and establishment of intellectual Property offices

developing rules, regulations and work manuals

enhancing public awareness on the protection of intellectual property rights

Full implementation of the agreement on Trade-related intellectual Property rights


138. The representative of nepal confirmed that nepal would apply the agreement on Trade-related intellectual Property rights by no later than 1 January 2007 according to the action plan in Table 10 with the understanding that during this period protection for intellectual property rights listed in paragraphs 136 and 137 would be applied in nepal. The Working Party took note of this commitment.

PoliCieS aFFeCTing Trade in SerViCeS

139. The representative of nepal said that the services sector in nepal had witnessed significant growth over the last two decades. it accounts for 32.3 per cent of gdP and provides employment to almost 18 per cent of the total labour force. during the last decade the average service exports of nepal had represented approximately US$200 million p.a. nepal was a net service exporter. The introduction of open and liberal policies, combined with full convertibility on current account transactions, explains the significant growth of the service sector. Public services enterprises were available in nepal in sectors such as business, transport and communications, distribution, educational, environmental, financial, health-related, social, tourism and travel related services, and recreational and sporting services. due to the support given by the government to road development, transport services had grown significantly. recently, the open and liberal policy had helped to transform the financial sector a leading services sector in nepal. However, there still was a scarcity of statistical data pertaining to the nature, type, and size of the existing service sector in the country. in documents WT/aCC/nPl1 and add.1, the representative of nepal described the overall market and regulatory structure of the principal service sectors in nepal and the relevant legal provisions. The legal framework was still under development, and a number of services sectors remained to be regulated. He noted that nepal’s legislation generally complied with the provisions of articles ii and XVii of the general agreement on Trade in Services (gaTS) concerning most favoured nation

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and national treatment, however, exceptions existed with regard to a number of activities under development as described under the services sectoral classification list. according to the industrial enterprises act, 1992, the manpower required for any industry, including all services, shall have to be recruited from among nepali citizens. nevertheless, foreigners were permitted to work in nepal on technical grounds, and in accordance with the commitments made in nepal’s gaTS schedule of specific commitments, annexed to the Protocol of accession, in particular with regard to the transfer of technology. a work permit issued by the government was required for foreigners to work in nepal. a foreigner could not be employed for more than 10 years.

140. The representative of nepal said that consultancy services such as management, accounting, engineering and legal services were not open to foreign investment under the Foreign investment and Technology Transfer act, 1992. The nepal Bar Council act, 1993 which regulates legal services, prohibits foreigners from practising law in nepal except if authorized by the competent nepalese Court to plead and represent a party to a case. The nepal Medical Council act, 1963 (as amended) was silent over the registration of a foreign medical practitioner in nepal. The Statistics act, 1969 which established the Central Bureau of Statistics provides that foreigners must obtain the authorization of the CBS to collect economic records and statistics for commercial purposes. The Telecommunications act, 1997 and the Telecommunications regulation, 1997 requires a licence from the nepal Telecommunications authority to operate telecommunications services and permits foreign investments in this sector. licenses are issued for a maximum period of ten years renewable for up to twenty five years. The Foreign investment and Technology Transfer act, 1992 did not limit foreign equity participation in this sector. in accordance with the nepal agency act, 1958 and agency (amendment and Consolidation) regulation, 1962 agents, distributors, stockists, nominees or representatives of foreign or local firms must be registered. nepalese citizens are given preference for getting registered as agents. With respect to financial services, the insurance act, 1992 established an insurance Board and required inter alia a licence to operate an insurance business, to set an office in nepal and to prove a paid capital of no less than nrs 250 million for life insurance and nrs 100 million for non-life insurance. With the deregulation of the sector, joint ventures had been initiated and some nine insurance companies were active in nepal. insurance services were regulated by the insurance-related legislation, while banking and non-banking institutions were regulated by the nepal rastra Bank, the Central Bank of the country, established under the nepal rastra Bank act, 2002. approval for establishing a commercial bank was granted in the conditions set out by the Central Bank and in accordance with the Commercial Bank act, 1974 (as amended), and other accompanying legislation. in addition to the State owned banks and banks with limited State participation, there were in nepal some nine private joint venture commercial banks, forty five finance companies and one hundred and thirty financial institutions. Tourism was one of the most important services sectors in nepal. The

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contribution of tourism to gdP was approximately 3.8 per cent and provided 18 per cent of the total foreign exchange. Tourism was regulated by a whole set of general rules, laws, and industrial acts such as the Tourism act, 2035 (1978) amended in 2053 (1997), by the Hotel, lodges, restaurants, Bar and Tourist guide regulation, 2038 (1981), the Travel and Trekking agency regulation, 2037 (1980), the Trekking and rafting regulation, 2044 (1985), and by the Mountaineering rules, 2036 (1979). as provided by the Foreign investment and Technology Transfer act, 1992, no permission was granted for the establishment of foreign companies, or foreign investment in the Travel agencies, Trekking agencies, Water rafting, Pony Trekking, Horse riding, and Tourist lodging. Foreign direct investment was permitted in the hotel industry subject to authorization as provided by FiTTa, 1992. in view of the economically underdeveloped status of the country and the dependence of a large number of people for their livelihood on these sectors, nepal called for the understanding of WTo Members in the opening of the services sector at this stage.

141. Some members asked the representative of nepal to explain the conditions that nepal imposes on foreign professionals working in nepal under which they are required to acquire membership of relevant nepalese professional associations. They asked nepal to confirm that the criteria governing such membership were not applied in a manner that would act as a barrier to foreign professionals and that membership requirements were open and transparent. in response, the representative of nepal explained that these requirements do not act as a barrier to foreign professionals seeking to work in nepal. architects and all types of engineers are required to be registered with nepal engineering Council. lawyers who appear before courts in nepal are required to be registered with nepal Bar Council. However, practitioners of third country and international law who do not appear before courts in nepal are not required to join the Bar Council. accountants are required to be registered with nepal Chartered accountants institute, with requirements of the same nature as those for architects and engineers. The requirements for membership of these and other professional associations were not onerous and included the possession of professional qualifications from a recognised institution and the payment of a membership fee. There was an open and transparent mechanism for foreign institutions to obtain recognition for this purpose. These same requirements were applicable equally to nepalese and foreigners and were applied in a fully non-discriminatory manner.

142. The representative of nepal said that the authorities’ decision affecting trade in services were subject to judicial review under the provision of each law governing such a service sector. There was also a provision of appeal in such cases under administration of Justice act, 1991. generally the appeal lies with the appellate Court which is an independent judicial body. Under Section 7 of the Foreign investment and Technology Transfer act, 1992 there is a provision for dispute settlement through arbitration in respect to disputes that may arise between a foreign investor, national investor or a concerning industry. The arbitration award may be appealed to the appellate Court in accordance with the arbitration act, 1999.

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143. The representative of nepal referred to the legislative action Plan circulated in document WT/aCC/10/rev.1 and reproduced in annex ii of this report. He said that the Ministry of industry, Commerce and Supplies would establish in June 2003 the enquiry point provided in article iii:4 gaTS. amendments to the labour act, 1991, the Company act, 1997, the nepal Bar Council act, 1992, the nepal Chartered accountants (First amendment) act, 2002, the insurance act, 1992, the Securities and exchange act, 1982, the Bank and Finance institutions act, and a draft Bill of the Health institutions operating act were being prepared by the Ministries of labour, industry, Commence and Supplies, Finance, law and Justice, Health and the Central Bank with a view to their submission to the Council of Ministers of nepal in 2003. The expected date of approval of these amendments would be February 2004 except for draft bill of the Health institutions operating act which would be endorsed by the Council of Ministers in September 2003.

144. nepal’s specific commitments on services are contained in the Schedule of Specific Commitments on Services (document WT/aCC/nPl/16/add.2) annexed to nepal’s draft Protocol of accession to the WTo.

Transparency

Publication of information on trade

145. The representative of nepal said that all trade measures and laws, regulations, and governmental or administrative rulings of general application were published in the nepal gazette, including multilateral agreements or Treaties in which nepal is a party. Judgements of the Supreme Courts are also published in the nepal law Journal by the Supreme Court of nepal. laws enter into force on the date of their publication unless another date is specified in the laws. Some of the transparency requirements of article X of gaTT 1994, article iii of the gaTS, and other WTo agreements were provided in Section 3 of the Statute of interpretation act, 1953, His Majesty’s government (allocation of Business) regulation, 2000, and nepal gazette of august 1955. it had been nepal’s practice to publish relevant acts, rules and regulations to give effect to these statutes.

146. He stated further that nepal intended to establish or designate an official journal or web-site, published or updated on a regular basis and readily available to WTo Members, individuals and enterprises, dedicated to the publication of all regulations and other measures pertaining to or affecting trade in goods, services, and TriPS prior to implementation, and that nepal intended to provide a reasonable period, e.g. no less than 15 days, for comment to the appropriate authorities of nepal before such measures are implemented, except for those regulations and other measures of general application involving national emergency or security, or for which the publication would impede law enforcement or be otherwise contrary to the public interest or prejudice the commercial interests of particular enterprises, public or private. nepal intended to implement this facility as soon as possible, and within

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the timeframe of its other WTo commitments.

147. The representative of nepal confirmed that, as a Member of the WTo, nepal would fulfill the transparency requirements established in article X of gaTT 1994, article iii of gaTS and other WTo agreements. nepal confirmed that all laws, regulations or measures of general application pertaining to or affecting trade in goods, services or TriPS would be published promptly in the official gazette or in the some single official source, and that no such law, regulation, etc. would become effective or be enforced prior to such publication. The publication of such laws, regulations and other measures of general application would include the effective date of these measures and list, where appropriate and possible, the products and services affected by the particular measure, identified for customs purposes by appropriate tariff line and classification. The Working Party took note of these commitments.

notifications

148. The representative of nepal said that within 12 months, at the latest, upon entry into force of the Protocol of accession, unless otherwise provided for in this report, and in accordance with the commitments set out in the legislative action Plan in annex ii, nepal would submit all initial notifications required by any agreement constituting part of the WTo agreement. any regulations subsequently enacted by nepal which gave effect to the laws enacted to implement any agreement constituting part of the WTo agreement would also conform to the requirements of that agreement.

Trade agreements

149. The representative of nepal said that nepal had signed bilateral trade agreements with the following 17 countries. More recently a trade cooperation agreement had been signed with the european Union.

Table 11: Trade agreements

Country Year1. republic of Bangladesh 19762. republic of Bulgaria 19803. People’s republic of China 19814. Czechoslovak Socialist republic 19925. arab republic of egypt 19756. republic of india

(a) Treaty of Transit 1991(b) Treaty of Trade 1991(c) agreement of Co-operation 1991

7. democratic People’s republic of Korea 19708. republic of Korea 19719. Mongolia 1992

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Country Year10. islamic republic of Pakistan 198211. republic of Poland 199212. republic of romania 198413. democratic Socialist republic of Sri-lanka 197914. United Kingdom of great Britain and northern ireland 196515. United States of america 194716. Union of Soviet Socialist republics 197017. Socialist Federal republic of Yugoslavia 1965

150. The representative of nepal said that these agreements provided most-favoured-nation treatment. They basically relate to trade in goods. as a landlocked country, nepal was interested in maintaining good neighbourliness for transit and trade relations with india. nepal considers that the treaties of transit and trade as well as the agreement of cooperation to control unauthorised trade signed in 1991 (as amended) provide a good basis for the development and diversification of trade. The two countries had signed these treaties with the aim of promoting trade, facilitating transit and controlling unauthorised trade. They accord each other unconditional most-favoured-nation treatment. They also exempt imports of certain primary products from duties or any form of quantitative restrictions on a reciprocal basis in the context of their trade. The treaty of trade also provides that india grants specially favourable (preferential) treatment to industrial products manufactured in nepal on the basis of non-reciprocity in order to promote the industrial development of nepal. With reference to article iV of the Treaty of Trade between nepal and india, following primary products would be eligible on a reciprocal basis to exempt from basic customs duty as well as from quantitative restrictions:

- agriculture, horticulture and forest produce and minerals which have not undergone any processing- rice, pulses and flour- Timber- Jaggery(gur and Shakhar)- animals, birds and Fish- Bees, bees-wax and honey- raw wool, goat hair,and bones as are used in the manufacture of bone- meal- Milk, home made products of milk and eggs- ghani- produced oil and oil cakes- ayurvedic and herbal medicines- articles produced by village artisans as are mainly use in villages- akara- Yak tail- any other primary products which may be mutually agreed upon

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With reference to article V of the Treaty of Trade between nepal and india, government of india provided access to the indian market free of custom duties and the quantitative restrictions for all articles with some restrictions on four products such as Vegetable Fats, acrylic Yarn, Copper Products under Chapter 74 and heading 8544 of HS Code, zinc oxide, manufactured in nepal on the basis of Certificate of origin issued by the agency designated by His Majesty’s government of nepal except the following articles:

- alcoholic liquors/Beverages and their concentrates except industrial spirits- Perfumes and Cosmetics with non nepalese/ non indian brand names- Cigarettes and Tobacco.

nepal is a member of the South asian Preferential Trade arrangements (SaPTa). SaarC (South asian association for regional Co-operation) had decided in principle to move from SaPTa to SaFTa (South asian Free Trade area). nepal is a member of SaarC which comprises seven countries of South asia that are Bangladesh, Bhutan, india, Maldives, nepal, Pakistan and Sri lanka. it is an association based on the consciousness that, in an increasingly interdependent world, the objectives of peace, freedom, social justice and economic prosperity are best achieved in the region by fostering mutual understanding and meaningful co-operation among its member states. at their first SaarC summit held in dhaka on 7-8 december 1985, the heads of state or government adopted the charter formerly establishing the SaarC. The agreement on SaarC Preferential Trading arrangements (SaPTa) was signed on 11 april 1993, and entered into force on 7 december 1995. nepal was the first country to ratify SaPTa in 1993. So far four rounds of trade negotiations have been completed. each round contributed to increased product coverage and deepening of tariff concessions. nepal has granted concessions on approximately 500 products under SaPTa. The percentage range of concessions granted by nepal under SaPTa is 10-15 per cent of the applied rate. The tenth SaarC Summit decided to set up a Committee of experts to draft a comprehensive treaty design to create a free-trade area within the region. The Committee has since been in the process of preparing a draft treaty for the consideration of SaarC. The Schedules of nepal’s commitments in SaarC under SaPTa agreement were communicated to WTo in document WT/aCC/nPl/3/add.1/Corr.1. a consolidated national schedule of concessions granted by nepal under first, second, and third rounds of trade negotiations under SaPTa can be accessed on web site http//www.saarc-sec.org. nepal confirms that at present nepal is not a member of any Free Trade area and Customs Union.

151. The representative of nepal confirmed that nepal would observe the relevant provisions of the WTo agreement, including article XXiV of the gaTT 1994, the 1979 gaTT decision on differential and More Favourable Treatment, reciprocity and Fuller Participation of developing Countries (enabling Clause) and article V of the gaTS, in trade agreements to which it belongs, and would ensure that the applicable provisions of these WTo agreements for notification, consultation, and

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other requirements concerning free trade areas, customs unions or other preferential arrangements, as the case may be, of which nepal is, or may become, a member were met from the date of accession. The Working Party took note of these commitments.

Technical assistance

152. The representative of nepal said that as a least developed country with limited resources, infrastructure and institutional and technical capabilities, nepal would face serious difficulties to implement the WTo agreements expeditiously by its own means. in the legislative action Plan and in the various action plans reproduced in Tables 3, 5, 7 and 10, nepal had identified the specific areas and projects where technical assistance would be welcome, and asked that specific offers of assistance in these areas would be forthcoming. in the view of nepal it was of the utmost importance, that individual WTo Members, bilateral donors, international agencies and the WTo Secretariat coordinate their responses to the technical assistance requested as soon as possible. From nepal’s perspective, WTo Members clearly had an interest in working with nepal to ensure that action plan timetables were met. He noted that a Member had offered to assist in the implementation of some aspects of the TriPS agreement. another Member had offered to assist in the development of institutional capabilities concerning transparency, notifications and judicial review. nepal believed that additional technical assistance would be required with respect to these and other areas of WTo implementation as noted in the action plans.

Conclusions

153. The Working Party took note of the explanations and statements of nepal concerning its foreign trade regime, as reflected in this report. The Working Party took note of the commitments given by nepal in relation to certain specific matters which are reproduced in paragraphs 20, 31, 36, 42, 44, 50, 53, 57, 64, 68, 71, 75, 79, 84, 88, 89, 98, 107, 109, 111, 112, 119, 138, 147 and 151 of this report. The Working Party took note that these commitments had been incorporated in paragraph 2 of the Protocol of accession of nepal to the WTo.

154. Having carried out the examination of the foreign trade regime of nepal and in the light of the explanations, commitments and concessions made by the representative of nepal, the Working Party reached the conclusion that nepal be invited to accede to the Marrakesh agreement establishing the WTo under the provisions of article Xii. For this purpose, the Working Party has prepared the draft decision and Protocol of accession reproduced in the appendix7 to this report, and takes note of nepal’s Schedule of Concessions and Commitments on goods (document WT/aCC/nPl/21/add.1) and its Schedule of Specific Commitments on Services (document WT/aCC/nPl/21/add.2) that are annexed to the draft Protocol. it is proposed that

7 not reproduced.

176 WTo BiSd 2003


these texts be adopted by the general Council when it adopts the report. When the decision is adopted, the Protocol of accession would be open for acceptance by nepal which would become a Member thirty days after it accepts the said Protocol. The Working Party agreed, therefore, that it had completed its work concerning the negotiations for the accession of nepal to the Marrakesh agreement establishing the WTo.

155. Having regard to the decision of 10 december 2002 on the accession of the ldCs, the Working Party agreed to propose that the general Council entrust the Sub-Committee on ldCs with the task of monitoring the implementation of the commitments subject to transitional arrangements.

anneX iliST oF laWS and legal aCTS

1. Foreign investment and Technology Transfer act (1992)2. industrial enterprises act (1992)3. Customs act (1962)4. Customs regulation (1970)5. nepal Seeds act, 2045 (1988)6. The Seeds regulation, 2054 (1997)7. Company act (1997)8. Plant Protection act, 20299. The Food act (1966)10. export and import Control act (1957)11. export and import rules (1978)12. Patent, design and Trade-Mark act (1965)13. Food regulation (1970)14. Plants Protection rules 2031 (1975)15. Customs act (1962) (amended 1997)16. Summary Procedure act (1972)17. Customs Tariff (electronic format)18. Treaty of Transit, Treaty of Trade and agreement of Co-operation to Con-

trol Unauthorised Trade between His Majesty’s government of nepal and the government of india 1991 (as amended and updated 1999)

19. Schedules to nepalese commitments in SaarC under SaPTa agreement20. Feed act (animal Concentrate) (1996)21. Copyright act (First amendment) (1997)22. Customs Tariff (electronic format)23. First amendment 2002 to the nepal Chartered accountant act (1998)24. Copyright act (2002)

177WTo BiSd 2003

accession

anneX ii

legiSlaTiVe aCTion Plan

The document is divided into three sections. The first section provides the synoptic picture of the progress in adoption of legislation. The second section provides revised agenda for enacting laws and/or adopting regulations/decrees for WTo conformity. The third section provides a calendar plan indicating priorities.

Section i: Progress in adoption of legislation

Since the submission of the legislative action Plan to the Working Party on the accession of the Kingdom of nepal on 21 May 2002, the following progress has taken place in adoption of legislation.

The following acts approved by the Parliament, have received royal seal and are in force:

- Copyright act 2002;- Special Court act 2002;- nepal Chartered accountant act (First amendment) 2002;- Foreign exchange (regulation) act 2002;- Several acts relating to amending Court Management and Judicial

administration act 2002; and - income Tax act 2002.

The department/Ministry has completed the following activities:

- Preparation of a preliminary draft of law on anti-dumping Measures;

- Preparation of a preliminary draft of Customs act (amendment) and Customs regulation (amendment);

- Preparation of a preliminary draft of export import act and export import regulations; and

- Preliminary draft of industrial Policy law.

The following bills/instruments were endorsed by the Councils of Ministers:

- Health Service (regulation and Standard) act 2002;- Plant resources act 2002;- Seeds (First amendment) act 2002; and- instruments of international Plant Protection Convention (iPPC).

178 WTo BiSd 2003

Sect

ion

ii:

rev

ised

leg

isla

tive

act

ion

Plan

(Pre

sent

Sta

tus

ofa

ndA

gend

afo

rN

epal

’sL

aw-M

akin

gP

roce

ssfo

rW

TOC

onfo

rmity

)

no.

law

s/r

egul

atio

ns/

adm

inis

trat

ive

dec

isio

nsW

To

agr

eem

ent

Stat

us o

f d

raft

/int

ende

d a

ctio

nse

xpec

ted

app

rova

l dat

e

1.in

stru

men

t of

rat

ifica

tion

of W

To

agr

eem

ent

Mar

rake

ch a

gree

men

t e

stab

lishi

ng W

To

199

4C

ounc

il of

Min

iste

rs w

ill c

onsi

der

subm

ittin

g to

the

Parl

iam

ent f

or r

atifi

catio

n/ac

cess

ion

of/to

the

WT

o

agr

eem

ent a

s so

on a

s W

To

app

rove

s m

embe

rshi

p to

n

epal

2.in

com

e Ta

x a

ct 2

002

gen

eral

app

rove

d by

the

Parl

iam

ent,

apr

il 20

02in

for

ce3.

Ban

krup

tcy/

inso

lven

cy

act

g

ener

alPr

epar

atio

n of

dra

ft o

f th

e ne

w a

ct b

y M

inis

try

of

Fina

nce

by d

ecem

ber

2004

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

July

200

5

Sep

tem

ber

2005

4.Fo

reig

n e

xcha

nge

(reg

ulat

ing)

act

200

2 (a

men

dmen

t)

gen

eral

app

rove

d by

the

Parl

iam

ent,

apr

il 20

02

in f

orce

5.C

ompe

titio

n a

ct

gen

eral

Prep

arat

ion

of d

raft

of

the

new

act

by

Min

istr

y of

in

dust

ry, C

omm

erce

and

Sup

plie

s by

nov

embe

r 20

03

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

Febr

uary

200

4

July

200

4

6.e

xpor

t im

port

(C

ontr

ol)

act

195

7 (a

men

dmen

t)

gen

eral

agr

eem

ent o

n Ta

riff

s an

d T

rade

199

4

agr

eem

ent o

n a

gric

ultu

re

agr

eem

ent o

n im

port

l

icen

sing

Pro

cedu

res.

initi

al d

raft

bei

ng p

repa

red

by d

epar

tmen

t of

Com

mer

ce

by a

ugus

t 200

3

Subm

issi

on b

y M

inis

try

of i

ndus

try

Com

mer

ce a

nd

Supp

lies

to C

ounc

il of

Min

iste

rs b

y Se

ptem

ber

2003

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

oct

ober

200

3

dec

embe

r 20

03

7.e

xpor

t im

port

(C

ontr

ol)

reg

ulat

ions

197

8 (a

men

dmen

t)

gen

eral

agr

eem

ent o

n Ta

riff

s an

d T

rade

199

4

agr

eem

ent o

n a

gric

ultu

re

agr

eem

ent o

n im

port

l

icen

sing

Pro

cedu

res.

initi

al d

raft

pre

pare

d by

dep

artm

ent o

f C

omm

erce

in

dec

embe

r 20

02

Subm

issi

on b

y M

inis

try

of i

ndus

try

Com

mer

ce a

nd

Supp

lies

to C

ounc

il of

Min

iste

rs b

y o

ctob

er 2

003

ado

ptio

n by

Cou

ncil

of M

inis

ters

by

dec

embe

r 20

03

dec

embe

r 20

03

179WTo BiSd 2003

no.

law

s/r

egul

atio

ns/

adm

inis

trat

ive

dec

isio

nsW

To

agr

eem

ent

Stat

us o

f d

raft

/int

ende

d a

ctio

nse

xpec

ted

app

rova

l dat

e

8.C

usto

ms

act

, 196

2 (a

men

dmen

t)a

gree

men

t on

impl

emen

tatio

n of

art

icle

V

ii o

f g

aT

T 1

994

(Cus

tom

s V

alua

tion)

agr

eem

ent o

n r

ules

of

ori

gin.

initi

al d

raft

pre

pare

d by

dep

artm

ent o

f C

usto

ms

in

dec

embe

r 20

02

Subm

issi

on b

y M

inis

try

of F

inan

ce to

the

Cou

ncil

of

Min

iste

rs b

y Ju

ne 2

003

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

Sept

embe

r 20

03

dec

embe

r 20

03

9.C

usto

ms

reg

ulat

ion,

196

9 (a

men

dmen

t)a

gree

men

t on

impl

emen

tatio

n of

art

icle

V

ii o

f g

aT

T 1

994

(Cus

tom

s V

alua

tion)

agr

eem

ent o

n r

ules

of

ori

gin.

initi

al d

raft

pre

pare

d by

dep

artm

ent o

f C

omm

erce

in

dec

embe

r 20

02

ado

ptio

n by

Min

istr

y of

Fin

ance

and

sub

mis

sion

to

Cou

ncil

of M

inis

ters

by

aug

ust 2

003

ado

ptio

n by

Cou

ncil

of M

inis

ters

by

dec

embe

r 20

03

dec

embe

r 20

03

10.

inst

rum

ents

of

rat

ifica

tion

For

Uni

ted

nat

ions

C

onve

ntio

n on

Con

trac

ts

for

the

inte

rnat

iona

l Sal

e of

goo

ds (

Vie

nna,

198

0)

gen

eral

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

Mar

ch 2

004

dec

embe

r 20

05

11.

law

on

ant

i-du

mpi

ng

Mea

sure

sa

gree

men

t of

impl

emen

tatio

n of

art

icle

V

i of

the

ga

TT

199

4 (a

nti-

dum

ping

)

Prep

arat

ion

of d

raft

legi

slat

ion

by d

ecem

ber

2003

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

Mar

ch 2

004

July

200

4

12.

nep

al S

tand

ards

(C

ertifi

catio

n M

ark)

act

, 19

80 (

am

endm

ent)

agr

eem

ent o

n Te

chni

cal

Bar

rier

s to

Tra

dePr

epar

atio

n of

dra

ft a

men

dmen

t by

June

200

4

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

Janu

ary

2005

apr

il 20

05

13.

nep

al S

tand

ards

(C

ertifi

catio

n M

ark)

r

egul

atio

ns, 1

982

(am

endm

ent)

agr

eem

ent o

n Te

chni

cal

Bar

rier

s to

Tra

dePr

epar

atio

n of

dra

ft a

men

dmen

t by

Sept

embe

r 20

05

ado

ptio

n by

Cou

ncil

of M

inis

ters

by

dec

embe

r 20

05d

ecem

ber

2005

14.

dec

isio

n on

the

esta

blis

hmen

t of

inqu

iry

Poin

ts

agr

eem

ent o

n Te

chni

cal

Bar

rier

s to

Tra

deSu

bmis

sion

of

prop

osal

by

WT

o d

ivis

ion,

Min

istr

y of

in

dust

ry, C

omm

erce

and

Sup

plie

s by

apr

il 20

03

ado

ptio

n by

Min

istr

y of

ind

ustr

y, C

omm

erce

and

Su

pplie

s by

Jun

e 20

03

June

200

3

180 WTo BiSd 2003

no.

law

s/r

egul

atio

ns/

adm

inis

trat

ive

dec

isio

nsW

To

agr

eem

ent

Stat

us o

f d

raft

/int

ende

d a

ctio

nse

xpec

ted

app

rova

l dat

e

15.

Plan

t Pro

tect

ion

act

197

2 (a

men

dmen

t)a

gree

men

t on

the

app

licat

ion

of S

anita

ry

and

Phyt

o-Sa

nita

ry

Mea

sure

s

Prep

arat

ion

of d

raft

am

endm

ent b

y Ju

ne 2

004

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

Janu

ary

2005

apr

il 20

05

16.

Pla

nt P

rote

ctio

n r

egul

atio

n 19

75

(am

endm

ent)

agr

eem

ent o

n th

e a

pplic

atio

n of

San

itary

an

d Ph

yto-

Sani

tary

M

easu

res

Prep

arat

ion

of d

raft

am

endm

ent b

y Se

ptem

ber

2005

ado

ptio

n by

Cou

ncil

of M

inis

ters

by

dec

embe

r 20

05

dec

embe

r 20

05

17.

inst

rum

ent o

f in

tern

atio

nal

Pla

nt P

rote

ctio

n C

onve

ntio

n (i

PPC

)

agr

eem

ent o

n th

e a

pplic

atio

n of

San

itary

an

d Ph

yto-

Sani

tary

M

easu

res

end

orse

d by

Cou

ncil

of M

inis

ters

in a

ugus

t 200

2 d

ecem

ber

2005

18.

Seed

act

199

8 (F

irst

a

men

dmen

t)a

gree

men

t on

the

app

licat

ion

of S

anita

ry

and

Phyt

o-Sa

nita

ry

Mea

sure

s

end

orse

d by

Cou

ncil

of M

inis

ters

in a

ugus

t 200

2a

ugus

t 200

4

19.

dec

isio

n on

the

esta

blis

hmen

t of

inqu

iry

Poin

ts

agr

eem

ent o

n Sa

nita

ry

and

Phyt

o-Sa

nita

ry

Mea

sure

s

gen

eral

agr

eem

ent o

n Ta

riff

s an

d T

rade

199

4

Subm

issi

on o

f pr

opos

al b

y W

To

div

isio

n, M

inis

try

of

indu

stry

, Com

mer

ce a

nd S

uppl

ies

by a

pril

2003

ado

ptio

n by

Min

istr

y of

ind

ustr

y, C

omm

erce

and

Su

pplie

s by

Jun

e 20

03

June

200

3

20.

env

iron

men

t act

, 199

7 (a

men

dmen

t)g

ener

alPr

epar

atio

n of

dra

ft a

men

dmen

t by

Min

istr

y of

Po

pula

tion

and

env

iron

men

t by

dec

embe

r 20

04

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

July

200

5

Sep

tem

ber

2005

21.

indu

stri

al P

rope

rty

(Pro

tect

ion)

act

agr

eem

ent o

n T

rade

-r

elat

ed a

spec

ts o

f in

telle

ctua

l Pro

pert

y

Prep

arat

ion

of n

ew d

raft

legi

slat

ion

by th

e d

epar

tmen

t of

indu

stry

by

dec

embe

r 20

03

ado

ptio

n by

Min

istr

y of

ind

ustr

y, C

omm

erce

and

Su

pplie

s by

dec

embe

r 2

004

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

July

200

5

dec

embe

r 20

05

181WTo BiSd 2003

no.

law

s/r

egul

atio

ns/

adm

inis

trat

ive

dec

isio

nsW

To

agr

eem

ent

Stat

us o

f d

raft

/int

ende

d a

ctio

nse

xpec

ted

app

rova

l dat

e

22.

Cop

yrig

ht a

ct 2

002

(am

endm

ent)

agr

eem

ent o

n T

rade

-r

elat

ed a

spec

ts o

f in

telle

ctua

l Pro

pert

y r

ight

s

app

rove

d by

the

Parl

iam

ent i

n a

ugus

t 200

2

in f

orce

23.

inst

rum

ent o

f r

atifi

catio

n of

Ber

n C

onve

ntio

n fo

r th

e P

rote

ctio

n of

lite

rary

and

a

rtis

tic W

orks

197

1

agr

eem

ent o

n T

rade

-r

elat

ed a

spec

ts o

f in

telle

ctua

l Pro

pert

y r

ight

s

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

dec

embe

r 20

03d

ecem

ber

2005

24.

Plan

t res

ourc

es a

cta

gree

men

t on

Tra

de-

rel

ated

asp

ects

of

inte

llect

ual P

rope

rty

rig

hts

end

orse

d by

Cou

ncil

of M

inis

ters

in 2

002

dec

embe

r 20

03

25.

acc

ess

to g

enet

ic

res

ourc

es a

cta

gree

men

t on

Tra

de-

rel

ated

asp

ects

of

inte

llect

ual P

rope

rty

rig

hts

Prep

arat

ion

of d

raft

of

the

new

legi

slat

ion

by M

inis

try

of

Fore

stry

and

Soi

l Con

serv

atio

n by

Jun

e 20

03

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

dec

embe

r 20

03

apr

il 20

04

26.

Phar

mac

eutic

al a

ct, 1

978

(am

endm

ent)

gen

eral

Prep

arat

ion

of d

raft

am

endm

ent b

y M

inis

try

of H

ealth

by

dec

embe

r 20

04e

ndor

sem

ent b

y C

ounc

il of

Min

iste

r by

apr

il 20

05

Sep

tem

ber

2005

27.

Cyb

er a

ctg

ener

alPr

epar

atio

n of

dra

ft a

men

dmen

t by

Min

istr

y of

Sci

ence

an

d Te

chno

logy

by

dec

embe

r 20

04e

ndor

sem

ent b

y C

ounc

il of

Min

iste

rs b

y a

pril

2005

Sep

tem

ber

2005

28.

Fore

ign

inve

stm

ent a

nd

Tech

nolo

gy T

rans

fer a

ct,

1992

. (a

men

dmen

t)

gen

eral

agr

eem

ent o

n T

rade

in S

ervi

ces

(ga

TS)

agr

eem

ent o

n T

rade

r

elat

ed i

nves

tmen

t M

easu

res.

Prep

arat

ion

of d

raft

bill

by

dep

artm

ent o

f in

dust

ry b

y a

ugus

t 200

3

Subm

issi

on b

y M

inis

try

of i

ndus

try,

Com

mer

ce a

nd

Supp

lies

to C

ounc

il of

Min

iste

rs b

y o

ctob

er 2

003

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

dec

embe

r 20

03

Febr

uary

200

4

29.

Fore

ign

inve

stm

ent a

nd

Tech

nolo

gy T

rans

fer

reg

ulat

ions

gen

eral

agr

eem

ent o

n T

rade

in S

ervi

ces

(ga

TS)

agr

eem

ent o

n T

rade

r

elat

ed i

nves

tmen

t M

easu

res.

Prep

arat

ion

of d

raft

reg

ulat

ion

by d

epar

tmen

t of

indu

stry

by

Mar

ch 2

004

Subm

issi

on b

y M

inis

try

of i

ndus

try,

Com

mer

ce a

nd

Supp

lies

to C

ounc

il of

Min

iste

rs b

y a

pril

2004

end

orse

men

t by

Cou

ncil

of M

inis

ters

by

May

200

4

May

200

4

182 WTo BiSd 2003

no.

law

s/r

egul

atio

ns/

adm

inis

trat

ive

dec

isio

nsW

To

agr

eem

ent

Stat

us o

f d

raft

/int

ende

d a

ctio

nse

xpec

ted

app

rova

l dat

e

30.

indu

stri

al e

nter

pris

es a

ct,

1992

(a

men

dmen

t)g

ener

al a

gree

men

t on

Tra

de in

Ser

vice

s (g

aT

S);

agr

eem

ent o

n T

rade

r

elat

ed i

nves

tmen

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Febr

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indu

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reg

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ncil

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by

May

200

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May

200

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32.

indu

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(am

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gen

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agr

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(ga

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agr

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Prep

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by d

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and

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Sep

tem

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2003

Sep

tem

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33.

Fore

ign

inve

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one

Win

dow

Pol

icy,

199

2 (a

men

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gen

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agr

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Prep

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Pol

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ind

ustr

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and

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Sep

tem

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2003

Sep

tem

ber

2003

34.

lab

our a

ct, 1

991

(am

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ent)

gen

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(ga

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Prep

arat

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of d

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am

endm

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tmen

t of

lab

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by a

ugus

t 200

3

Subm

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inis

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of l

abou

r by

oct

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ndor

sem

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y C

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Min

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ecem

ber

2003

Febr

uary

200

4

183WTo BiSd 2003

no.

law

s/r

egul

atio

ns/

adm

inis

trat

ive

dec

isio

nsW

To

agr

eem

ent

Stat

us o

f d

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d a

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l dat

e

35.

Com

pany

act

, 199

7 (a

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vice

s (g

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by

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and

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3

end

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ncil

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ters

by

dec

embe

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03

Febr

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200

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36.

nep

al B

ar C

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1992

(a

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dec

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Febr

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Febr

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39.

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Fin

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by

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end

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by

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Sep

tem

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42.

dec

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Poin

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agr

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Subm

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To

div

isio

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inis

try

of

indu

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Com

mer

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nd S

uppl

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by a

pril

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ado

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ustr

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s by

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e 20

03

June

200

3

184 WTo BiSd 2003


Section iii: Calendar Plan

2003 – expected approval date:

- decision on the establishment of inquiry Point on TBT, June;- decision on the establishment of inquiry Point on SPS, June;- decision on the establishment of inquiry Point on Services, June;- industrial Policy, 1992 (amendment), September;- Foreign investment and one Window Policy, 1992 (amendment),

September;- Health institutions operating act, September;- export import (Control) act, 1957 (amendment), december;- export import (Control) regulations, 1978 (amendment), december;- Customs act, 1962 (amendment), december;- Customs regulations, 1969 (amendment), december; and- Plant resources act, december.


- industrial enterprises act, 1992 (amendment), February;- labour act, 1991 (amendment), February;- Company act, 1997 (amendment), February;- nepal Bar Council act, 1992 (amendment), February;- insurance act, 1992 (amendment), February;- Securities exchange act, 1982 (amendment), February;- Bank and Finance institution act, February;- Foreign investment and Technology Transfer act, February;- access to genetic resources act, april;- Foreign investment and Technology Transfer regulations, May;- industrial enterprises regulations, May;- law on anti-dumping Practices, July;- Competition act, July; and- Seed act, 1998 (First amendment), august.


- Plant Protection act, april;- nepal Standards (Certification Mark) act, 1980, april;- Bankruptcy/insolvency act, September;- environment act, September;- Pharmaceutical act, 1978 (amendment), September;- Cyber act, September;- nepal Standards (Certification Mark) regulations, 1982, december;- Plant Protection regulation, 1975 (amendment), december;- industrial Property (Protection) act, december;- instrument of ratification of Bern Convention, december;

185WTo BiSd 2003

accession

- instrument of international Plant Protection Convention (iPPC), december; and

- instrument of ratification for the Un Convention on Contracts for the international Sale of good, december.

anneX iiiVaT exemptions

exempted from VaT:

1. Basic agricultural Products

(a) Paddy rice, wheat, maize, millet, pulses, flour, and similar unprocessed food materials.

(b) green and fresh vegetables, fresh fruits, fresh eggs and similar products.

(c) Unprocessed cereals, oil seeds (tobacco, sugar, cotton, cardamom, jute, soybean, ground nuts, linseed rape seed, sun flower and similar basic agricultural products to be used to make edible oil).

2. goods of Basic needs

(a) edible oil (produced through local oils mills).(b) Piped water, including water supplied by tankers.(c) Fuel wood and coal.(d) Kerosene.

3. live animals and animal Products

(a) He goat, sheep, yak, he buffalo, bore, pigs, rabbit, and similar other animals; their fresh milk, and uncooked/unprocessed varieties.

(b) Cows, she buffalo and she goat.(c) ducks, hens, cocks, turkey and similar other birds, and

their fresh meat, eggs, and similar uncooked varieties.

4. agricultural inputs

(a) Seeds of any plants listed in group 2.(b) Manure, fertilizer and soil conditioners.(c) agricultural hand implements.

186 WTo BiSd 2003


5. Pesticides, made mainly for use on crops

Medicine, Medical and Similar Health Services(a) Services provided by any hospital, clinics or other

institutions approved by the government in order to provide medical or surgical treatment.

(b) Professional services provided by medical practitioners (doctor, nurse, health assistance, etc.) individually or institutionally.

(c) goods provided to the recipients in connection with the supply of services listed in group (a) and (b) above.

(d) Human blood and products derived from human blood.(e) Human or animal organs or tissue for medical research.(f) The supply of services by persons on the registry of

veterinary surgeons and veterinary doctors.(g) Medicine for the treatment of human being and animals.(h) The supply of goods made for, and suitable only for the

use of, disabled persons.

6. education

a) The provision of research in a school or university.b) The provision, otherwise than for profit, of professional

or vocational training or refresher training.c) The provision of education in a school or university and

supply of goods made in connection with such services.

7. Books, newspapers etc.

(a) Books, brochures and pamphlets.(b) newspapers, newsletters and periodicals.(c) Maps, and charts.(d) Covers, cases and other articles supplied with items (a) to

(c) above if not separately charged.(e) radio and television transmissions.

8. artistic and Cultural goods and Services, Carving Services

(a) Cultural and artistic services (painting, carving and related services).

187WTo BiSd 2003

accession

(b) Cultural programme.(c) admission to libraries, archaeology, museums, zoos and

botanical gardens.

9. Passenger Transportation Services

- The provision of services for the transport of person from one point in the Kingdom of nepal to another point in the Kingdom of nepal (except sightseeing trips).

10. Personal or Professional Service

- Personal services rendered by lawyers, auditors, engineers, artists, actors, singers, dancers, sportsmen, authors, writers, designers, professional sportsmen, insurers, booksellers, translators and interpreters institutionally or individually.

11. other goods or Services

(a) Postal services (provided by nepal only)

(i) The service of conveyance of letters, money and postal packets by the Post office.

(ii) The supply by the Post office of any service in connection with the conveyance of letters, money and postal packets.

(iii) Postage stamps.

(b) Financial and insurance services

- Bank notes, and cheque books

(i) The printing and issue of bank notes.(ii) The supply of bank notes from outside the

Kingdom of nepal to the Kingdom of nepal.(iii) Cheque book.

(c) gold and silver

(i) gold and gold coins (other than ornaments and

188 WTo BiSd 2003


goods made of gold).(ii) Silver and silver coins (other than ornaments

and goods made of silver).

12. land and Building

Purchase and rent of land and buildings

13. Betting, Casinos, lotteries

(a) The provision of any facilities for the placing of bets or the playing of games of chance.

(b) lottery.

The following goods or services attractzerorate of value added tax:

1. goods or services purchased or imported by His Majesty the King, Her Majesty the Queen, His Majesty the Crown Prince, and other members of the royal Family.

2. export of goods

(a) goods exported outside the Kingdom of nepal; or(b) goods shipped for use as stores on a flight to an eventual

destination outside the Kingdom of nepal; or(c) goods loaded for use as stores on aircraft to a destination

outside the Kingdom of nepal or as merchandise for sale by retail or supplied to persons in the course of such a flight.

3. export of services

(a) a supply of services by a person resident in the Kingdom of nepal to a person outside the Kingdom of nepal and having no business establishment, agent, or legal representative acting on his behalf in the Kingdom of nepal.

(b) Where goods are supplied on a hire or loan basis by a registered person resident in nepal to a person resident outside the Kingdom of nepal.

189WTo BiSd 2003

accession

4. imports of goods and services by accredited diplomats.

in accordance with Section 5 of the Value added Tax act, 1996, the exemptions to the VaT were equally available to imports and domestic products.

anneX iV

excise Taxes

S.no. HS Code items excise duty1. 1703.10 Can molasses rs. 25 per quintal2. raw sugar in solid form rs. 55 per quintal3. 2106.90.20 Betel/areca (Pan Parag) nuts mixed with

catechu and lime with or without nicotine rs. 165 per kg

4. 2206 Champagne, Perry mead etc. rs. 125 per litre5 2204.29 Wine or fresh fruits not exceeding 17 per

cent alcoholic contentrs. 70 per litre

6. 2306.00 Cider rs. 70 per litre7. 2203.00 Beer rs. 36 per litre8. 2206.00 Chhyang rs. 15 per litre9. 2207.20 denatured spirits rs. 6 per litre10. 2207.20 Thinner rs. 25 per litre11. 2208.00 industrial spirits with 57.38 to 80 per cent

alcohol content by volume, to be used as raw material for spirituous drink

rs. 70 per litre

12. 2207.10 rectified spirit, silent spirit (ena) used as raw material for alcoholic products with an alcoholic strength of 80 per cent or higher by volume

rs. 25 per litre

13.2208.20.902208.30.902208.50.90

all alcoholic productsUp to strength of 40 UPStrength of 40 to 60 UP Strength 60 UP and higher (25 UP is equivalent to 43.04%40 UP is equivalent to 34.43%65 UP is equivalent to 20.08%)

rs. 260 per lPlrs. 150 per lPlrs. 44 per lPl

14. 24.02.20 all kinds of cigarettei. Cigarettes up to 70 mm in length a) Without filter b) With filter ii. 70 mm to 75 mm (with filter) iii. 76 mm to 85 mm (with filter) iv. More than 85 mm (with filter)

rs. 100 per Mrs. 285 per Mrs. 365 per Mrs. 500 per Mrs. 675 per M

15. 2402.10 all kinds of cigar rs. 2.25 per stick16. 2403.10.10 Pipe tobacco rs. 350 per kg17. 2403.99 Tobacco extracts and essences including

chewing tobacco rs. 165 per kg

18. 2403.99 raw chewing tobacco rs. 100 per kg

190 WTo BiSd 2003


S.no. HS Code items excise duty19. 2523 all kinds of cement rs. 100 per M.T.20. 6901-5 all kinds of bricks rs. 500 per

thousand (equalizing duty)

21. 8702, 8703, 8704

Motor Vehicles

Car, jeep, vansMicrobuses (11 to 14 seats)double Cab Pick UpThree Wheeler Vehicles (auto rickshaw)Single Cab Pick Updelivery VanMinibuses

32%32%32%32%15%15%4%

22. 3501 all kind of polythene bags rs. 15 per kg

anneX V

Certification Chart

Certification Chartno. of Quality Certification Mark issued

for products name of Product no. of industries

High density Polythene Pipe 12Biscuits 2ordinary Portland Cement 3Mineral Water 3Writing and Printing Paper 2Toothpaste 1Bitumen emulsion 1gi Wire 3deformed Steel Bar and Wires for Concrete reinforcement

13

Paints 5 Types 2gun Metal gate Valve 1Soybean oil and Vegetable ghee – 2 types 8galvanized Mild Steel Pipe for Water Supply 3PVC Cable 6instant noodles 3Hand Made Woollen Carpet 2PVC Pipe for drinking Water Supply 3dry Cell Battery 2Beer 4lPg Cylinder 1Polythene Water Storage Tank 1Textile 1Tiles 1Total 78

191WTo BiSd 2003

accession

anneX Vi

export duties as of July 2002

Heading no.

Sub heading

no.description of article

Current applied

rate (in %)

1 2 3 415.07 Soyabean oil and its fractions, whether or not refined, but

not chemically modified.1507.10.00 -Crude oil, whether or not degummed 5

1507.90.00 -other 5

15.11 Palm oil and its fractions, whether or not refined, but not chemically modified.

1511.10.00 -Crude oil 5

1511.90.00 -other 5

15.13 Coconut (copra), palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified.

-Coconut (copra) oil and its fractions:1513.11.00 --Crude oil 2

1513.19.00 --other 2

-Palm kernel or babassu oil and fractions thereof:1513.21.00 --Crude oil 5

1513.29.00 --other 5

15.16animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, reesterified or elaidinised, whether or not refined, but not further prepared.

1516.10.00 -animal fats and oils and their fractions 5

1516.20.00 -Vegetable fats and oils and their fractions 5

15.17Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, other than edible fats or oils or their fractions of Heading 15.16.

1517.90.00 -other 5

17.03 Molasses resulting from the extraction or refining of sugar.

1703.10.00 -Cane molasses 5

1703.90.00 -other 5

25.05 natural sands of all kinds, whether or not coloured, other than metal- bearing sands of Chapter 26.

2505.10.00-Silica sand and quartz sands

rs. 100 per cubic

meter2505.90.00

-otherrs. 100 per cubic

meter

192 WTo BiSd 2003


Heading no.

Sub heading


Current applied

rate (in %)

1 2 3 425.16 granite, porphyry, basalt, sandstone and other monumental or

building stone, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape.

-granite: --Crude or roughly trimmed

2516.21.10 -- Crushed stones and stone chips upto the size 2 inches for road building

rs. 50 per cubic meter

2516.21.20 -- Crushed stones and stone chips of a size more than 2 inches for road building

rs. 100 per cubic

meter2516.21.30

-- Boulders and uncrushed stones for road buildingrs. 300 per cubic

meter2516.21.90

-- Mixture of sand and pebbles (chhary)rs. 100 per cubic

meter --Merely cut, by sawing or otherwise, into blocks or slabs

of a rectangular (including square) shape:




rs. 100 per cubic

meter2516.22.90


meter25.17

Pebbles, gravel, broken or crushed stone, of a kind commonly used for concrete aggregates, for road metalling or for railway or other ballast, shingle and flint, whether or not heat-treated; macadam of slag, dross or similar industrial waste, whether or not incorporating the materials cited in the first part of the heading tarred macadam; granules, chippings and powder, of stones of Heading 25.15 or 25.16, whether or not heat-treated

-Pebbles, gravel, broken or crushed stone, of a kind commonly used for concrete aggregates, for road metalling or for railway or other ballast, shingle and flint, whether or not heat-treated :




rs. 100 per cubic

meter2517.10.90


meter

193WTo BiSd 2003

accession

Heading no.

Sub heading


Current applied

rate (in %)

1 2 3 4-Macadam of slag, dross or similar industrial waste, whether or not incorporating the materials cited in Sub-heading 2517.10 :




rs. 100 per cubic

meter2517.30.00

-Tarred macadam rs. 50 per cubic meter

-granules, chippings and powder, of stones of Heading 25.15 or 25.16, whether or not heat-treated:

2517.41.00 --of marble 6

2517.49.00 --other 6

25.19 natural magnesium carbonate (magnesite); fused magnesia; dead-burned (sintered) magnesia, whether or not containing small quantities of other oxides added before sintering; other magnesium oxide, whether or not pure.

2519.10.00-natural magnesium carbonate (magnesite)

rs. 200 per cubic

meter2519.90.00

-otherrs. 200 per cubic

meter28.17 2817.00.00 zinc oxide; zinc peroxide. 3

32.03 Colouring matter of vegetable or animal origin (including dyeing extracts but excluding animal black), whether or not chemically defined; preparations based on colouring matter of vegetable or animal origin as specified in note 3 to this Chapter:

3203.00.10-- Cutch of acacia (Kachha)

Per Kg rs. 2/-

3203.00.20-- Catechu of acacia (Kathas)

Per Kg rs. 5/-

39.15 Waste, parings and scrap, of plastics.3915.10.00 -of polymers of ethylene 4

3915.20.00 -of polymers of styrene 4

3915.30.00 -of polymers of vinyl chloride 4

3915.90.00 -of other plastics 4

39.16Monofilament of which any cross-sectional dimension exceeds 1mm, rods, sticks and profile shapes, whether or not surface-worked but not otherwise worked, of plastics.

194 WTo BiSd 2003


Heading no.

Sub heading


Current applied

rate (in %)

1 2 3 43916.10.00 -of polymers of ethylene 4



39.17 Tubes, pipes and hoses, and fittings therefor (for example, joints, elbows, flanges), of plastics.

3917.10.00 -artificial guts (sausage casings) of hardened rotein or of cellulosic materials

4

-Tubes, pipes and hoses, rigid:3917.21.00 --of polymers of ethylene 4

3917.22.00 --of polymers of propylene 4

3917.23.00 --of polymers of vinyl chloride 4

3917.29.00 --of other plastics 4

other tubes, pipes and hoses:3917.31.00 --Flexible tubes, pipes and hoses, having a minimum

burst pressure of 27.6 Mpa.4

3917.32.00 --other, not reinforced or otherwise combined with other materials, without fittings.

4

3917.33.00 --other, not reinforced or otherwise combined with other materials, with fittings.

4

3917.39.00 --other 4

3917.40.00 -Fittings 4

39.18 Floor coverings of plastics, whether or not self-adhesive, in rolls or in the form of tiles; wall or ceiling coverings of plastics, as defined in note 9 to this Chapter.



39.19 Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls.

3919.10.00 -in rolls of a width not exceeding 20 cm 4

3919.90.00 -other 4

39.20 other plates, sheets, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials.

3920.10.00 -of polymers of ethylene 4

3920.20.00 -of polymers of propylene 4

3920.30.00 -of polymers of styrene 4

-of polymers of vinyl chloride:3920.43.00 - Containing by weight not less than 6% of plasticiser 4

3920.49.00 -- other 4

-of acrylic polymers:3920.51.00 --of polymethyl methacrylate 4

195WTo BiSd 2003

accession

Heading no.

Sub heading


Current applied

rate (in %)

1 2 3 43920.59.00 --other 4

-of polycarbonates, alkyd resins, polyallylesters or other polyesters:

3920.61.00 --of polycarbonates 4

3920.62.00 --of polyethylene terephthalate 4

3920.63.00 --of unsaturated polyesters 4

3920.69.00 --of other polyesters 4

-of cellulose or its chemical derivatives:3920.71.00 --of regenerated cellulose 4

3920.72.00 --of vulcanised fibre 4

3920.73.00 --of cellulose acetate 4

3920.79.00 --of other cellulose derivatives 4

-of other plastics:3920.91.00 --of polyvinyl butyral 4

3920.92.00 --of polyamides 4

3920.93.00 --of amino-resins 4

3920.94.00 --of phenolic resins 4


39.21 other plates, sheets, film, foil and strip, of plastics.

-Cellular:3921.11.00 --of polymers of styrene 4

3921.12.00 --of polymers of vinyl chloride 4

3921.13.00 --of polyurethanes 4

3921.14.00 --of regenerated cellulose 4


3921.90.00 -other 4

39.22 Baths, shower-baths, wash-basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware, of plastics.

3922.10.00 -Baths, shower-b\aths and wash-basins 4

3922.20.00 -lavatory seats and covers 4

3922.90.00 -other 4

39.23 articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics.

3923.10.00 -Boxes, cases, crates and similar articles 4

-Sacks and bags (including cones):3923.21.00 --of polymers of ethylene 4


196 WTo BiSd 2003


Heading no.

Sub heading


Current applied

rate (in %)

1 2 3 43923.30.00 -Carboys, bottles, flasks and similar articles 4

-Spools, cops, bobbins and similar supports:3923.40.10 -- Video and audio cassettes without magnetic tape 4

3923.40.90 -other 4

3923.50.00 -Stoppers, lids, caps and other closures 4

3923.90.00 -other 4

39.24 Tableware, kitchenware, other household articles and toilet articles, of plastics.-Tableware and kitchenware:

3924.10.10 --infant feeding bottles 4

3924.10.90 --other 4

3924.90.00 -other 4

39.25 Builders’ wares of plastics, not elsewhere specified or included.

3925.10.00 -reservoirs, tanks, vats and similar containers, of a capacity exceeding 300 l.

4

3925.20.00 -doors, windows and their frames and thresholds for doors

4

3925.30.00 -Shutters, blinds (including venetian blinds) and similar articles and parts thereof

4

3925.90.00 -other 4

39.26 other articles of plastics and articles of other materials or Headings 39.01 to 39.14.

3926.10.00 -office or school supplies 4

3926.20.00 -articles of apparel and clothing accessories (including gloves)

4

3926.30.00 -Fittings for furniture, coachwork or the like 4

3926.40.00 -Statuettes and other ornamental articles 4

-other:3926.90.10 --Bangles, tika, tikuli and beads 4

3926.90.20 -- Plastic dye for shoe making 4

3926.90.30 -- Plastic for laboratory equipment 4

3926.90.40 -- Pet bottle (raw material for bottle) 4

3926.90.90 --other 4

44.01 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs briquettes, pellets or similar forms.

4401.10.00 -Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs briquettes, pellets or similar forms.

200

-Wood in chips or particles:

197WTo BiSd 2003

accession

Heading no.

Sub heading


Current applied

rate (in %)

1 2 3 44401.21.00 --Coniferous 200

4401.22.00 --non-coniferous 200

4401.30.00 -Sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms

200

44.03 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared.

4403.10.00 -Treated with paint, stains, creosote or other preservatives

200

4403.20.00 -other coniferous 200

-other, of tropical woodspecified in subheading note 1 to this Chapter.

4403.41.00 -- dark red meranti, light red meranti and meranti bakau 200

4403.49.00 -- other 200

-other:4403.91.00 --of oak (Quercus spp.) 200

4403.92.00 --of beech (Fagus spp.) 200

4403.99.00 --other 200

44.04Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking-sticks, umbrellas, tool handles or the like; chipwood.

4404.10.00 -Coniferous 200

4404.20.00 -non-coniferous 200

44.05 4405.00.00 Wood wool; wood flour. 200

44.06 railway or tramway sleepers (cross-ties) of wood.4406.10.00 -not impregnated 200

4406.90.00 -other 200

44.07 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-jointed, of a thickness exceeding 6 mm.

4407.10.00 -Coniferous 200

-of tropical wood specified in subheading note 1 to this Chapter:

4407.24.00 -- Virola, mahogany (swietenia spp.), imbuia and balsa 200

4407.25.00 -- dark red meranti, right red meranti and meranti bakau 200

4407.26.00 -- White lauan, white meranti, white seraya, yellow meranti and alan

200

4407.29.00 -- other 200

-other:4407.91.00 --of oak 200

198 WTo BiSd 2003


Heading no.

Sub heading


Current applied

rate (in %)

1 2 3 44407.92.00 --of beech 200

4407.99.00 --other 200

44.08Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn lengthwise, sliced or peeled, whether or not planed, sanded or finger-jointed, of a thickness not exceeding 6 mm.

4408.10.00 -Coniferous 70

- of tropical wood specified in subheading note 1 to this Chapter:

4408.31.00 -- dark red meranti, light red meranti and meranti bakau 70

4408.39.00 -- other 70

4408.90.00 -other 70

54.02 Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex.-other yarn, single, with a twist exceeding 50 turns per metre

--of nylon or other polyamides :

5402.51.10 -- Texturised yarn made by PoY 2

5402.51.90 -- other 0.5

--of polyesters :


5402.52.90 -- other 0.5

--other :


5402.59.90 -- other 0.5

-other yarn, multiple (folded) or cabled:

--of nylon or other polymides :


5402.61.90 -- other 0.5

--of polyesters :


5402.62.90 -- other 0.5

-other :


5402.69.90 -- other 0.5

73.04 Tubes, pipes and hollow profiles, seamless or iron (other than cast iron) or steel.

7304.10.00 - line pipe of a kind used for oil or gas pipelines 2

- Casing, tubing and drill pipe, of a kind used in drilling for oil or gas:

199WTo BiSd 2003

accession

Heading no.

Sub heading


Current applied

rate (in %)

1 2 3 47304.21.00 -- drill pipe 2

7304.29.00 -- other 2

- other, of circular cross-section, or iron or non-alloy steel:

7304.31.00 -- Cold-drawn or cold-rolled (cold-reduced) 2

7304.39.00 -- other 2

- other, of circular cross-section, or iron or non-alloy of stainless steel:

7304.41.00 -- Cold-drawn or cold-rolled (cold-reduced) 2

7304.49.00 -- other 2

- other, of circular cross-section, of other alloy steel:7304.51.00 -- Cold-drawn or cold-rolled (cold-reduced) 2

7304.59.00 -- other 2

7304.90.00 - other 2

73.05other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406.4 mm, or iron or steel.

- line pipe of a kind used for oil or gas pipelines:7305.11.00 -- longitudinally submerged arc welded 2

7305.12.00 -- other, longitudinally welded 2

7305.19.00 -- other 2

7305.20.00 - Casing of a kind used in the drilling for oil or gas 2

-other, welded:7305.31.00 -- longitudinally welded 2

7305.39.00 -- other 2

7305.90.00 - other 2

73.06 other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), or iron or steel.

7306.10.00 - line pipe of a kind used for oil or gas pipelines 2

7306.20.00 - Casing and tubing of a kind used in drilling for oil or gas

2

7306.30.00 - other, welded, of circular cross-section of iron or non-alloy steel

2

7306.40.00 - other, welded, of circular cross-section of stainless steel 2

7306.50.00 - other, welded, of circular cross-section of other alloy steel

2

7306.60.00 - other, welded, of non-circular cross-section 2

7306.90.00 - other 2

73.07 Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel.-Cast fittings:

200 WTo BiSd 2003


Heading no.

Sub heading


Current applied

rate (in %)

1 2 3 47307.11.00 -- of non-malleable cast iron 2

7307.19.00 -- other 2

- other of stainless steel:7307.21.00 -- Flanges 2

7307.22.00 -- Threaded elbows, bends and sleeves 2

7307.23.00 -- Butt welding fittings 2

7307.29.00 -- other 2

- other:7307.91.00 -- Flanges 2

7307.92.00 -- Threaded elbows, bends and sleeves 2

7307.93.00 -- Butt welding fittings 2

7307.99.00 -- other 2

74.08 Copper wire.

-of refined copper:7408.11.00 -- of which the maximum cross-sectional dimesnion

exceeds 6 mm3

7408.19.00 --other 3

- of copper alloys:7408.21.00 -- of copper-zinc base alloys (brass) 3

7408.22.00 -- of copper-nickel base alloys (cupro-nickel) or copper-nickel-zinc base alloys (nickel silver)

3

7408.29.00 -- other 3

94.03 other furniture and parts thereof.9403.70.00 - Furniture of plastics 4

201WTo BiSd 2003

accession

DecisionoftheMinisterialConferenceon11September2003(ExtractfromWT/MIN(03)/19)

The Ministerial Conference,

Havingregardto paragraph 2 of article Xii and paragraph 1 of article iX of the Marrakesh agreement establishing the World Trade organization (the “WTo agreement”), and the decision-Making Procedures under articles iX and Xii of the WTo agreement agreed by the general Council (WT/l/93),

Takingnoteof the application of the Kingdom of nepal for accession to the WTo agreement dated 17 February 1997,

Noting the results of the negotiations directed toward the establishment of the terms of accession of the Kingdom of nepal to the WTo agreement and having prepared a Protocol on the accession of the Kingdom of nepal,

Decides as follows:

1. The Kingdom of nepal may accede to the WTo agreement on the terms and conditions set out in the Protocol annexed to this decision.1

1 See under Section “legal instruments”.

202 WTo BiSd 2003


APPELLATE BODY

WorKing ProCedUreS For aPPellaTe reVieW (WP/AB/WP/7)

Definitions

1. in these WorkingProceduresforAppellateReview,

“appellant”

means any party to the dispute that has filed a notice of appeal pursuant to rule 20 or has filed a submission pursuant to paragraph 1 of rule 23;

“appellate report”

means an appellate Body report as described in article 17 of the dSU;

“appellee”

means any party to the dispute that has filed a submission pursuant to rule 22 or paragraph 3 of rule 23;

“consensus”

a decision is deemed to be made by consensus if no Member formally objects to it;

“covered agreements”

has the same meaning as “covered agreements” in paragraph 1 of article 1 of the dSU;

“division”

means the three Members who are selected to serve on any one appeal in accordance with paragraph 1 of article 17 of the dSU and paragraph 2 of rule 6;

“documents”

means the notice of appeal and the submissions and other written statements presented by the participants;

“dSB”

means the dispute Settlement Body established under article 2 of the dSU;

203WTo BiSd 2003

appellate Body

“dSU”

means the UnderstandingonRulesandProceduresGoverningtheSettlementofDisputes which is annex 2 to the WTOAgreement;

“Member”

means a Member of the appellate Body who has been appointed by the dSB in accordance with article 17 of the dSU;

“participant”

means any party to the dispute that has filed a notice of appeal pursuant to rule 20 or a submission pursuant to rule 22 or paragraphs 1 or 3 of rule 23;

“party to the dispute”

means any WTo Member who was a complaining or defending party in the panel dispute, but does not include a third party;

“proof of service”

means a letter or other written acknowledgement that a document has been delivered, as required, to the parties to the dispute, participants, third parties or third participants, as the case may be;

“rules”

means these WorkingProceduresforAppellateReview;

“RulesofConduct”

means the RulesofConductfortheUnderstandingonRulesandProcedures Governing the Settlement of Disputes as attached in annex ii to these rules;

“SCMAgreement”

means the AgreementonSubsidiesandCountervailingMeasures which is in annex 1a to the WTOAgreement;

“Secretariat”

means the appellate Body Secretariat;

“service address”

means the address of the party to the dispute, participant, third party or third participant as generally used in WTo dispute settlement proceedings, unless the party to the dispute, participant, third party or third participant has clearly indicated another address;

204 WTo BiSd 2003


“third participant”

means any third party that has filed a written submission pursuant to rule 24(1); or any third party that appears at the oral hearing, whether or not it makes an oral statement at that hearing;

“third party”

means any WTo Member who has notified the dSB of its substantial interest in the matter before the panel pursuant to paragraph 2 of article 10 of the dSU;

“WTo”

means the World Trade organization;

“WTOAgreement”

means the Marrakesh Agreement Establishing the World TradeOrganization, done at Marrakesh, Morocco on 15 april 1994;

“WTo Member”

means any State or separate customs territory possessing full autonomy in the conduct of its external commercial relations that has accepted or acceded to the WTo in accordance with articles Xi, Xii or XiV of the WTOAgreement; and

“WTo Secretariat”

means the Secretariat of the World Trade organization.

205WTo BiSd 2003

appellate Body

ParT i

MeMBerS

DutiesandResponsibilities

2. (1) a Member shall abide by the terms and conditions of the dSU, these rules and any decisions of the dSB affecting the appellate Body.

(2) during his/her term, a Member shall not accept any employment nor pursue any professional activity that is inconsistent with his/her duties and responsibilities.

(3) a Member shall exercise his/her office without accepting or seeking instructions from any international, governmental, or non-governmental organization or any private source.

(4) a Member shall be available at all times and on short notice and, to this end, shall keep the Secretariat informed of his/her whereabouts at all times.

Decision-Making

3. (1) in accordance with paragraph 1 of article 17 of the dSU, decisions relating to an appeal shall be taken solely by the division assigned to that appeal. other decisions shall be taken by the appellate Body as a whole.

(2) The appellate Body and its divisions shall make every effort to take their decisions by consensus. Where, nevertheless, a decision cannot be arrived at by consensus, the matter at issue shall be decided by a majority vote.

Collegiality

4. (1) To ensure consistency and coherence in decision-making, and to draw on the individual and collective expertise of the Members, the Members shall convene on a regular basis to discuss matters of policy, practice and procedure.

(2) The Members shall stay abreast of dispute settlement activities and other relevant activities of the WTo and, in particular, each Member shall receive all documents filed in an appeal.

(3) in accordance with the objectives set out in paragraph 1, the division

206 WTo BiSd 2003


responsible for deciding each appeal shall exchange views with the other Members before the division finalizes the appellate report for circulation to the WTo Members. This paragraph is subject to paragraphs 2 and 3 of rule 11.

(4) nothing in these rules shall be interpreted as interfering with a division’s full authority and freedom to hear and decide an appeal assigned to it in accordance with paragraph 1 of article 17 of the dSU.

Chairman

5. (1) There shall be a Chairman of the appellate Body who shall be elected by the Members.

(2) The term of office of the Chairman of the appellate Body shall be one year. The appellate Body Members may decide to extend the term of office for an additional period of up to one year. However, in order to ensure rotation of the Chairmanship, no Member shall serve as Chairman for more than two consecutive terms.

(3) The Chairman shall be responsible for the overall direction of the appellate Body business, and in particular, his/her responsibilities shall include:

(a) the supervision of the internal functioning of the appellate Body; and

(b) any such other duties as the Members may agree to entrust to him/her.

(4) Where the office of the Chairman becomes vacant due to permanent incapacity as a result of illness or death or by resignation or expiration of his/her term, the Members shall elect a new Chairman who shall serve a full term in accordance with paragraph 2.

(5) in the event of a temporary absence or incapacity of the Chairman, the appellate Body shall authorize another Member to act as Chairman ad interim, and the Member so authorized shall temporarily exercise all the powers, duties and functions of the Chairman until the Chairman is capable of resuming his/her functions.

Divisions

6. (1) in accordance with paragraph 1 of article 17 of the dSU, a division

207WTo BiSd 2003

appellate Body

consisting of three Members shall be established to hear and decide an appeal.

(2) The Members constituting a division shall be selected on the basis of rotation, while taking into account the principles of random selection, unpredictability and opportunity for all Members to serve regardless of their national origin.

(3) a Member selected pursuant to paragraph 2 to serve on a division shall serve on that division, unless:

(i) he/she is excused from that division pursuant to rules 9 or 10;

(ii) he/she has notified the Chairman and the Presiding Member that he/she is prevented from serving on the division because of illness or other serious reasons pursuant to rule 12; or

(iii) he/she has notified his/her intentions to resign pursuant to rule 14.

PresidingMemberoftheDivision

7. (1) each division shall have a Presiding Member, who shall be elected by the Members of that division.

(2) The responsibilities of the Presiding Member shall include:

(a) coordinating the overall conduct of the appeal proceeding;

(b) chairing all oral hearings and meetings related to that appeal; and

(c) coordinating the drafting of the appellate report.

(3) in the event that a Presiding Member becomes incapable of performing his/her duties, the other Members serving on that division and the Member selected as a replacement pursuant to rule 13 shall elect one of their number to act as the Presiding Member.

RulesofConduct

8. (1) on a provisional basis, the appellate Body adopts those provisions of the rules of Conduct for the Understanding on rules and Procedures governing the Settlement of disputes, attached in annex ii to these rules, which are applicable to it, until rules of Conduct are approved by the dSB.

208 WTo BiSd 2003


(2) Upon approval of Rules of Conduct by the dSB, such Rules ofConduct shall be directly incorporated and become part of these rules and shall supersede annex ii.

9. (1) Upon the filing of a notice of appeal, each Member shall take the steps set out in article Vi:4(b)(i) of annex ii, and a Member may consult with the other Members prior to completing the disclosure form.

(2) Upon the filing of a notice of appeal, the professional staff of the Secretariat assigned to that appeal shall take the steps set out in article Vi:4(b)(ii) of annex ii.

(3) Where information has been submitted pursuant to article Vi:4(b)(i) or (ii) of annex ii, the appellate Body shall consider whether further action is necessary.

(4) as a result of the appellate Body’s consideration of the matter pursuant to paragraph 3, the Member or the professional staff member concerned may continue to be assigned to the division or may be excused from the division.

10. (1) Where evidence of a material violation is filed by a participant pursuant to article Viii of annex ii, such evidence shall be confidential and shall be supported by affidavits made by persons having actual knowledge or a reasonable belief as to the truth of the facts stated.

(2) any evidence filed pursuant to article Viii:1 of annex ii shall be filed at the earliest practicable time: that is, forthwith after the participant submitting it knew or reasonably could have known of the facts supporting it. in no case shall such evidence be filed after the appellate report is circulated to the WTo Members.

(3) Where a participant fails to submit such evidence at the earliest practicable time, it shall file an explanation in writing of the reasons why it did not do so earlier, and the appellate Body may decide to consider or not to consider such evidence, as appropriate.

(4) While taking fully into account paragraph 5 of article 17 of the dSU, where evidence has been filed pursuant to article Viii of annex ii, an appeal shall be suspended for fifteen days or until the procedure referred to in article Viii:14-16 of annex ii is completed, whichever is earlier.

(5) as a result of the procedure referred to in article Viii:14-16 of annex ii, the appellate Body may decide to dismiss the allegation, to excuse the Member or professional staff member concerned from being assigned to the division or make such other order as it deems necessary in accordance with article Viii of annex ii.

209WTo BiSd 2003

appellate Body

11. (1) a Member who has submitted a disclosure form with information attached pursuant to article Vi:4(b)(i) or is the subject of evidence of a material violation pursuant to article Viii:1 of annex ii, shall not participate in any decision taken pursuant to paragraph 4 of rule 9 or paragraph 5 of rule 10.

(2) a Member who is excused from a division pursuant to paragraph 4 of rule 9 or paragraph 5 of rule 10 shall not take part in the exchange of views conducted in that appeal pursuant to paragraph 3 of rule 4.

(3) a Member who, had he/she been a Member of a division, would have been excused from that division pursuant to paragraph 4 of rule 9, shall not take part in the exchange of views conducted in that appeal pursuant to paragraph 3 of rule 4.

Incapacity

12. (1) a Member who is prevented from serving on a division by illness or for other serious reasons shall give notice and duly explain such reasons to the Chairman and to the Presiding Member.

(2) Upon receiving such notice, the Chairman and the Presiding Member shall forthwith inform the appellate Body.

Replacement

13. Where a Member is unable to serve on a division for a reason set out in paragraph 3 of rule 6, another Member shall be selected forthwith pursuant to paragraph 2 of rule 6 to replace the Member originally selected for that division.

resignation

14. (1) a Member who intends to resign from his/her office shall notify his/her intentions in writing to the Chairman of the appellate Body who shall immediately inform the Chairman of the dSB, the director-general and the other Members of the appellate Body.

(2) The resignation shall take effect 90 days after the notification has been made pursuant to paragraph 1, unless the dSB, in consultation with the appellate Body, decides otherwise.

Transition

15. a person who ceases to be a Member of the appellate Body may, with the authorization of the appellate Body and upon notification

210 WTo BiSd 2003


to the dSB, complete the disposition of any appeal to which that person was assigned while a Member, and that person shall, for that purpose only, be deemed to continue to be a Member of the appellate Body.

ParT ii

ProCeSS

GeneralProvisions

16. (1) in the interests of fairness and orderly procedure in the conduct of an appeal, where a procedural question arises that is not covered by these rules, a division may adopt an appropriate procedure for the purposes of that appeal only, provided that it is not inconsistent with the dSU, the other covered agreements and these rules. Where such a procedure is adopted, the division shall immediately notify the parties to the dispute, participants, third parties and third participants as well as the other Members of the appellate Body.

(2) in exceptional circumstances, where strict adherence to a time period set out in these rules would result in a manifest unfairness, a party to the dispute, a participant, a third party or a third participant may request that a division modify a time period set out in these rules for the filing of documents or the date set out in the working schedule for the oral hearing. Where such a request is granted by a division, any modification of time shall be notified to the parties to the dispute, participants, third parties and third participants in a revised working schedule.

17. (1) Unless the dSB decides otherwise, in computing any time period stipulated in the dSU or in the special or additional provisions of the covered agreements, or in these rules, within which a communication must be made or an action taken by a WTo Member to exercise or preserve its rights, the day from which the time period begins to run shall be excluded and, subject to paragraph 2, the last day of the time-period shall be included.

(2) The dSB decision on “expiration of Time-Periods in the dSU”, WT/dSB/M/7, shall apply to appeals heard by divisions of the appellate Body.

211WTo BiSd 2003

appellate Body

Documents

18. (1) no document is considered filed with the appellate Body unless the document is received by the Secretariat within the time period set out for filing in accordance with these rules.

(2) except as otherwise provided in these rules, every document filed by a party to the dispute, a participant, a third party or a third participant shall be served on each of the other parties to the dispute, participants, third parties and third participants in the appeal.

(3) a proof of service on the other parties to the dispute, participants, third parties and third participants shall appear on, or be affixed to, each document filed with the Secretariat under paragraph 1 above.

(4) a document shall be served by the most expeditious means of delivery or communication available, including by:

(a) delivering a copy of the document to the service address of the party to the dispute, participant, third party or third participant; or

(b) sending a copy of the document to the service address of the party to the dispute, participant, third party or third participant by facsimile transmission, expedited delivery courier or expedited mail service.

(5) Upon authorization by the division, a participant or a third participant may correct clerical errors in any of its submissions. Such correction shall be made within 3 days of the filing of the original submission and a copy of the revised version shall be filed with the Secretariat and served upon the other parties to the dispute, participants, third parties and third participants.

ExParteCommunications

19. (1) neither a division nor any of its Members shall meet with or contact one party to the dispute, participant, third party or third participant in the absence of the other parties to the dispute, participants, third parties and third participants.

(2) no Member of the division may discuss any aspect of the subject

212 WTo BiSd 2003


matter of an appeal with any party to the dispute, participant, third party or third participant in the absence of the other Members of the division.

(3) a Member who is not assigned to the division hearing the appeal shall not discuss any aspect of the subject matter of the appeal with any party to the dispute, participant, third party or third participant.

CommencementofAppeal

20. (1) an appeal shall be commenced by notification in writing to the dSB in accordance with paragraph 4 of article 16 of the dSU and simultaneous filing of a notice of appeal with the Secretariat.

(2) a notice of appeal shall include the following information:

(a) the title of the panel report under appeal;(b) the name of the party to the dispute filing the notice of

appeal;(c) the service address, telephone and facsimile numbers of

the party to the dispute; and(d) a brief statement of the nature of the appeal, including the

allegations of errors in the issues of law covered in the panel report and legal interpretations developed by the panel.

Appellant’sSubmission

21. (1) The appellant shall, within 10 days after the date of the filing of the notice of appeal, file with the Secretariat a written submission prepared in accordance with paragraph 2 and serve a copy of the submission on the other parties to the dispute and third parties.

(2) a written submission referred to in paragraph 1 shall

(a) be dated and signed by the appellant; and (b) set out

(i) a precise statement of the grounds for the appeal, including the specific allegations of errors in the issues of law covered in the panel report and legal interpretations

213WTo BiSd 2003

appellate Body

developed by the panel, and the legal arguments in support thereof;(ii) a precise statement of the provisions of the covered agreements and other legal sources relied on; and(iii) the nature of the decision or ruling sought.

Appellee’sSubmission

22. (1) any party to the dispute that wishes to respond to allegations raised in an appellant’s submission filed pursuant to rule 21 may, within 25 days after the date of the filing of the notice of appeal, file with the Secretariat a written submission prepared in accordance with paragraph 2 and serve a copy of the submission on the appellant, other parties to the dispute and third parties.

(2) a written submission referred to in paragraph 1 shall

(a) be dated and signed by the appellee; and (b) set out

(i) a precise statement of the grounds for opposing the specific allegations of errors in the issues of law covered in the panel report and legal interpretations developed by the panel raised in the appellant’s submission, and the legal arguments in support thereof;(ii) an acceptance of, or opposition to, each ground set out in the appellant’s submission;(iii) a precise statement of the provisions of the covered agreements and other legal sources relied on; and(iv) the nature of the decision or ruling sought.

MultipleAppeals

23. (1) Within 15 days after the date of the filing of the notice of appeal, a party to the dispute other than the original appellant may join in that appeal or appeal on the basis of other alleged errors in the issues of law covered in the panel report and legal interpretations developed by the panel.

(2) any written submission made pursuant to paragraph 1 shall be in

214 WTo BiSd 2003


the format required by paragraph 2 of rule 21.

(3) The appellant, any appellee and any other party to the dispute that wishes to respond to a submission filed pursuant to paragraph 1 may file a written submission within 25 days after the date of the filing of the notice of appeal, and any such submission shall be in the format required by paragraph 2 of rule 22.

(4) This rule does not preclude a party to the dispute which has not filed a submission under rule 21 or paragraph 1 of this rule from exercising its right of appeal pursuant to paragraph 4 of article 16 of the dSU.

(5) Where a party to the dispute which has not filed a submission under rule 21 or paragraph 1 of this rule exercises its right to appeal as set out in paragraph 4, a single division shall examine the appeals.

ThirdParticipants

24. (1) any third party may file a written submission containing the grounds and legal arguments in support of its position. Such submission shall be filed within 25 days after the date of the filing of the notice of appeal.

(2) a third party not filing a written submission shall, within the same period of 25 days, notify the Secretariat in writing if it intends to appear at the oral hearing, and, if so, whether it intends to make an oral statement.

(3) Third participants are encouraged to file written submissions to facilitate their positions being taken fully into account by the division hearing the appeal and in order that participants and other third participants will have notice of positions to be taken at the oral hearing.

(4) any third party that has neither filed a written submission pursuant to paragraph (1), nor notified the Secretariat pursuant to paragraph (2), may notify the Secretariat that it intends to appear at the oral hearing, and may request to make an oral statement at the hearing. Such notifications and requests should be notified to the Secretariat in writing at the earliest opportunity.

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Transmittal of record

25. (1) Upon the filing of a notice of appeal, the director-general of the WTo shall transmit forthwith to the appellate Body the complete record of the panel proceeding.

(2) The complete record of the panel proceeding includes, but is not limited to:

(i) written submissions, rebuttal submissions, and supporting evidence attached thereto by the parties to the dispute and the third parties;

(ii) written arguments submitted at the panel meetings with the parties to the dispute and the third parties, the recordings of such panel meetings, and any written answers to questions posed at such panel meetings;

(iii) the correspondence relating to the panel dispute between the panel or the WTo Secretariat and the parties to the dispute or the third parties; and

(iv) any other documentation submitted to the panel.

WorkingSchedule

26. (1) Forthwith after the commencement of an appeal, the division shall draw up an appropriate working schedule for that appeal in accordance with the time periods stipulated in these rules.

(2) The working schedule shall set forth precise dates for the filing of documents and a timetable for the division’s work, including where possible, the date for the oral hearing.

(3) in accordance with paragraph 9 of article 4 of the dSU, in appeals of urgency, including those which concern perishable goods, the appellate Body shall make every effort to accelerate the appellate proceedings to the greatest extent possible. a division shall take this into account in drawing up its working schedule for that appeal.

(4) The Secretariat shall serve forthwith a copy of the working schedule on the appellant, the parties to the dispute and any third parties.

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OralHearing

27. (1) a division shall hold an oral hearing, which shall be held, as a general rule, 30 days after the date of the filing of the notice of appeal.

(2) Where possible in the working schedule or otherwise at the earliest possible date, the Secretariat shall notify all parties to the dispute, participants, third parties and third participants of the date for the oral hearing.

(3) (a) any third party that has filed a submission pursuant to rule 24(1), or has notified the Secretariat pursuant to rule 24(2) that it intends to appear at the oral hearing, may appear at the oral hearing, make an oral statement at the hearing, and respond to questions posed by the division.

(b) any third party that has notified the Secretariat pursuant to rule 24(4) that it intends to appear at the oral hearing may appear at the oral hearing.

(c) any third party that has made a request pursuant to rule 24(4) may, at the discretion of the division hearing the appeal, taking into account the requirements of due process, make an oral statement at the hearing, and respond to questions posed by the division.

(4) The Presiding Member may, as necessary, set time-limits for oral arguments and presentations.

WrittenResponses

28. (1) at any time during the appellate proceeding, including, in particular, during the oral hearing, the division may address questions orally or in writing to, or request additional memoranda from, any participant or third participant, and specify the time periods by which written responses or memoranda shall be received.

(2) any such questions, responses or memoranda shall be made available to the other participants and third participants in the appeal, who shall be given an opportunity to respond.

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(3) When the questions or requests for memoranda are made prior to the oral hearing, then the questions or requests, as well as the responses or memoranda, shall also be made available to the third parties, who shall also be given an opportunity to respond.

FailuretoAppear

29. Where a participant fails to file a submission within the required time periods or fails to appear at the oral hearing, the division shall, after hearing the views of the participants, issue such order, including dismissal of the appeal, as it deems appropriate.

WithdrawalofAppeal

30. (1) at any time during an appeal, the appellant may withdraw its appeal by notifying the appellate Body, which shall forthwith notify the dSB.

(2) Where a mutually agreed solution to a dispute which is the subject of an appeal has been notified to the dSB pursuant to paragraph 6 of article 3 of the dSU, it shall be notified to the appellate Body.

ProhibitedSubsidies

31. (1) Subject to article 4 of the SCMAgreement, the general provisions of these rules shall apply to appeals relating to panel reports concerning prohibited subsidies under Part ii of that Agreement.

(2) The working schedule for an appeal involving prohibited subsidies under Part ii of the SCMAgreement shall be as set out in annex i to these rules.

EntryintoForceandAmendment

32. (1) These rules shall enter into force on 15 February 1996.

(2) The appellate Body may amend these rules in compliance with the procedures set forth in paragraph 9 of article 17 of the dSU.

(3) Whenever there is an amendment to the dSU or to the special or additional rules and procedures of the covered agreements, the appellate Body shall examine whether amendments to these rules are necessary.

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anneX i

TiMeTaBle For aPPealS

general appeals Prohibited Subsidies appeals

day daynotice of appeal1 0 0

appellant’s Submission2 10 5

other appellant(s) Submission(s)3 15 7

appellee(s) Submission(s)4

Third Participant(s) Submission(s)5

Third Participant(s) notification(s)6

252525

121212

oral Hearing7 30 15

Circulation of appellate report 60 – 908 30 – 609

dSB Meeting for adoption 90 – 12010 50 – 8011

1 rule 20.2 rule 21.3 rule 23(1).4 rules 22 and 23(3).5 rule 24(1).6 rule 24(2).7 rule 27.8 article 17:5, dSU.9 article 4:9, SCMAgreement.10 article 17:14, dSU.11 article 4:9, SCMAgreement.

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anneX ii

rUleS oF CondUCT For THe UnderSTanding on rUleS and ProCedUreS

goVerning THe SeTTleMenT oF diSPUTeS

I. Preamble

Members,

Recalling that on 15 april 1994 in Marrakesh, Ministers welcomed the stronger and clearer legal framework they had adopted for the conduct of international trade, including a more effective and reliable dispute settlement mechanism;

Recognizing the importance of full adherence to the Understanding on rules and Procedures governing the Settlement of disputes (“dSU”) and the principles for the management of disputes applied under articles XXii and XXiii of gaTT 1947, as further elaborated and modified by the dSU;

Affirming that the operation of the dSU would be strengthened by rules of conduct designed to maintain the integrity, impartiality and confidentiality of proceedings conducted under the dSU thereby enhancing confidence in the new dispute settlement mechanism;

Hereby establish the following rules of Conduct.

II. GoverningPrinciple

1. each person covered by these rules (as defined in paragraph 1 of Section iV below and hereinafter called “covered person”) shall be independent and impartial, shall avoid direct or indirect conflicts of interest and shall respect the confidentiality of proceedings of bodies pursuant to the dispute settlement mechanism, so that through the observance of such standards of conduct the integrity and impartiality of that mechanism are preserved. These rules shall in no way modify the rights and obligations of Members under the dSU nor the rules and procedures therein.

III. ObservanceoftheGoverningPrinciple

1. To ensure the observance of the governing Principle of these rules, each covered person is expected (1) to adhere strictly to the provisions of the dSU; (2) to disclose the existence or development of any interest, relationship or matter that that person could reasonably be expected to know and that is likely to affect, or give rise to

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justifiable doubts as to, that person’s independence or impartiality; and (3) to take due care in the performance of their duties to fulfil these expectations, including through avoidance of any direct or indirect conflicts of interest in respect of the subject matter of the proceedings.

2. Pursuant to the governing Principle, each covered person, shall be independent and impartial, and shall maintain confidentiality. Moreover, such persons shall consider only issues raised in, and necessary to fulfil their responsibilities within, the dispute settlement proceeding and shall not delegate this responsibility to any other person. Such person shall not incur any obligation or accept any benefit that would in anyway interfere with, or which could give rise to, justifiable doubts as to the proper performance of that person’s dispute settlement duties.

IV. Scope

1. These rules shall apply, as specified in the text, to each person serving: (a) on a panel; (b) on the Standing appellate Body; (c) as an arbitrator pursuant to the provisions mentioned in annex “1a”; or (d) as an expert participating in the dispute settlement mechanism pursuant to the provisions mentioned in annex “1b”. These rules shall also apply, as specified in this text and the relevant provisions of the Staff regulations, to those members of the Secretariat called upon to assist the panel in accordance with article 27.1 of the dSU or to assist in formal arbitration proceedings pursuant to annex “1a”; to the Chairman of the Textiles Monitoring Body (hereinafter called “TMB”) and other members of the TMB Secretariat called upon to assist the TMB in formulating recommendations, findings or observations pursuant to the WTo agreement on Textiles and Clothing; and to Standing appellate Body support staff called upon to provide the Standing appellate Body with administrative or legal support in accordance with article 17.7 of the dSU (hereinafter “Member of the Secretariat or Standing appellate Body support staff ”), reflecting their acceptance of established norms regulating the conduct of such persons as international civil servants and the governing Principle of these rules.

2. The application of these rules shall not in any way impede the Secretariat’s discharge of its responsibility to continue to respond to Members’ requests for assistance and information.

3. These rules shall apply to the members of the TMB to the extent prescribed in Section V.

V. TextilesMonitoringBody

1. Members of the TMB shall discharge their functions on an adpersonam basis, in accordance with the requirement of article 8.1 of the agreement on Textiles

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and Clothing, as further elaborated in the working procedures of the TMB, so as to preserve the integrity and impartiality of its proceedings.1

VI. Self-DisclosureRequirementsbyCoveredPersons

1. (a) each person requested to serve on a panel, on the Standing appellate Body, as an arbitrator, or as an expert shall, at the time of the request, receive from the Secretariat these rules, which include an illustrative list (annex 2) of examples of the matters subject to disclosure.

(b) any member of the Secretariat described in paragraph iV:1, who may expect to be called upon to assist in a dispute, and Standing appellate Body support staff, shall be familiar with these rules.

2. as set out in paragraph Vi:4 below, all covered persons described in paragraph Vi.1(a) and Vi.1(b) shall disclose any information that could reasonably be expected to be known to them at the time which, coming within the scope of the governing Principle of these rules, is likely to affect or give rise to justifiable doubts as to their independence or impartiality. These disclosures include the type of information described in the illustrative list, if relevant.

3. These disclosure requirements shall not extend to the identification of matters whose relevance to the issues to be considered in the proceedings would be insignificant. They shall take into account the need to respect the personal privacy of those to whom these rules apply and shall not be so administratively burdensome as to make it impracticable for otherwise qualified persons to serve on panels, the Standing appellate Body, or in other dispute settlement roles.

4. (a) all panelists, arbitrators and experts, prior to confirmation of their appointment, shall complete the form at annex 3 of these rules. Such information would be disclosed to the Chair of the dispute Settlement Body (“dSB”) for consideration by the parties to the dispute.

1 These working procedures, as adopted by the TMB on 26 July 1995 (g/TMB/r/1), currently include, interalia, the following language in paragraph 1.4: “in discharging their functions in accordance with paragraph 1.1 above, the TMB members and alternates shall undertake not to solicit, accept or act upon in-structions from governments, nor to be influenced by any other organisations or undue extraneous factors. They shall disclose to the Chairman any information that they may consider likely to impede their capacity to discharge their functions on an adpersonam basis. Should serious doubts arise during the deliberations of the TMB regarding the ability of a TMB member to act on an adpersonam basis, they shall be com-municated to the Chairman. The Chairman shall deal with the particular matter as necessary”.

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(b) (i) Persons serving on the Standing appellate Body who, through rotation, are selected to hear the appeal of a particular panel case, shall review the factual portion of the Panel report and complete the form at annex 3. Such information would be disclosed to the Standing appellate Body for its consideration whether the member concerned should hear a particular appeal.

(ii) Standing appellate Body support staff shall disclose any relevant matter to the Standing appellate Body, for its consideration in deciding on the assignment of staff to assist in a particular appeal.

(c) When considered to assist in a dispute, members of the Secretariat shall disclose to the director-general of the WTo the information required under paragraph Vi:2 of these rules and any other relevant information required under the Staff regulations, including the information described in the footnote.**

5. during a dispute, each covered person shall also disclose any new information relevant to paragraph Vi:2 above at the earliest time they become aware of it.

6. The Chair of the dSB, the Secretariat, parties to the dispute, and other individuals involved in the dispute settlement mechanism shall maintain the confidentiality of any information revealed through this disclosure process, even after the panel process and its enforcement procedures, if any, are completed.

** Pending adoption of the Staff regulations, members of the Secretariat shall make disclosures to the director-general in accordance with the following draft provision to be included in the Staff regulations:

“When paragraph Vi:4(c) of the rules of Conduct for the dSU is applicable, members of the Secretariat would disclose to the director-general of the WTo the information required in paragraph Vi:2 of those rules, as well as any information regarding their participation in earlier formal consideration of the specific measure at issue in a dispute under any provisions of the WTo agreement, including through formal legal advice under article 27.2 of the dSU, as well as any involvement with the dispute as an official of a WTo Member government or otherwise professionally, before having joined the Secretariat.

The director-general shall consider any such disclosures in deciding on the assignment of members of the Secretariat to assist in a dispute.

When the director-general, in the light of his consideration, including of available Secretariat resources, decides that a potential conflict of interest is not sufficiently material to warrant non-assignment of a par-ticular member of the Secretariat to assist in a dispute, the director-general shall inform the panel of his decision and of the relevant supporting information.”

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VII. Confidentiality

1. each covered person shall at all times maintain the confidentiality of dispute settlement deliberations and proceedings together with any information identified by a party as confidential. no covered person shall at any time use such information acquired during such deliberations and proceedings to gain personal advantage or advantage for others.

2. during the proceedings, no covered person shall engage in exparte contacts concerning matters under consideration. Subject to paragraph Vii:1, no covered person shall make any statements on such proceedings or the issues in dispute in which that person is participating, until the report of the panel or the Standing appellate Body has been derestricted.

VIII. ProceduresConcerningSubsequentDisclosureandPossibleMaterialViolations

1. any party to a dispute, conducted pursuant to the WTo agreement, who possesses or comes into possession of evidence of a material violation of the obligations of independence, impartiality or confidentiality or the avoidance of direct or indirect conflicts of interest by covered persons which may impair the integrity, impartiality or confidentiality of the dispute settlement mechanism, shall at the earliest possible time and on a confidential basis, submit such evidence to the Chair of the dSB, the director-general or the Standing appellate Body, as appropriate according to the respective procedures detailed in paragraphs Viii:5 to Viii:17 below, in a written statement specifying the relevant facts and circumstances. other Members who possess or come into possession of such evidence, may provide such evidence to the parties to the dispute in the interest of maintaining the integrity and impartiality of the dispute settlement mechanism.

2. When evidence as described in paragraph Viii:1 is based on an alleged failure of a covered person to disclose a relevant interest, relationship or matter, that failure to disclose, as such, shall not be a sufficient ground for disqualification unless there is also evidence of a material violation of the obligations of independence, impartiality, confidentiality or the avoidance of direct or indirect conflicts of interests and that the integrity, impartiality or confidentiality of the dispute settlement mechanism would be impaired thereby.

3. When such evidence is not provided at the earliest practicable time, the party submitting the evidence shall explain why it did not do so earlier and this explanation shall be taken into account in the procedures initiated in paragraph Viii:1.

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4. Following the submission of such evidence to the Chair of the dSB, the director-general of the WTo or the Standing appellate Body, as specified below, the procedures outlined in paragraphs Viii:5 to Viii:17 below shall be completed within fifteen working days.

Panelists, arbitrators, experts

5. if the covered person who is the subject of the evidence is a panelist, an arbitrator or an expert, the party shall provide such evidence to the Chair of the dSB.

6. Upon receipt of the evidence referred to in paragraphs Viii:1 and Viii:2, the Chair of the dSB shall forthwith provide the evidence to the person who is the subject of such evidence, for consideration by the latter.

7. if, after having consulted with the person concerned, the matter is not resolved, the Chair of the dSB shall forthwith provide all the evidence, and any additional information from the person concerned, to the parties to the dispute. if the person concerned resigns, the Chair of the dSB shall inform the parties to the dispute and, as the case may be, the panelists, the arbitrator(s) or experts.

8. in all cases, the Chair of the dSB, in consultation with the director-general and a sufficient number of Chairs of the relevant Council or Councils to provide an odd number, and after having provided a reasonable opportunity for the views of the person concerned and the parties to the dispute to be heard, would decide whether a material violation of these rules as referred to in paragraphs Viii:1 and Viii:2 above has occurred. Where the parties agree that a material violation of these rules has occurred, it would be expected that, consistent with maintaining the integrity of the dispute settlement mechanism, the disqualification of the person concerned would be confirmed.

9. The person who is the subject of the evidence shall continue to participate in the consideration of the dispute unless it is decided that a material violation of these rules has occurred.

10. The Chair of the dSB shall thereafter take the necessary steps for the appointment of the person who is the subject of the evidence to be formally revoked, or excused from the dispute as the case may be, as of that time.

Secretariat

11. if the covered person who is the subject of the evidence is a member of the Secretariat, the party shall only provide the evidence to the director-general of the WTo, who shall forthwith provide the evidence to the person who is the subject of

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such evidence and shall further inform the other party or parties to the dispute and the panel.

12. it shall be for the director-general to take any appropriate action in accordance with the Staff regulations.***

13. The director-general shall inform the parties to the dispute, the panel and the Chair of the dSB of his decision, together with relevant supporting information.

StandingAppellateBody

14. if the covered person who is the subject of the evidence is a member of the Standing appellate Body or of the Standing appellate Body support staff, the party shall provide the evidence to the other party to the dispute and the evidence shall thereafter be provided to the Standing appellate Body.

15. Upon receipt of the evidence referred to in paragraphs Viii:1 and Viii:2 above, the Standing appellate Body shall forthwith provide it to the person who is the subject of such evidence, for consideration by the latter.

16. it shall be for the Standing appellate Body to take any appropriate action after having provided a reasonable opportunity for the views of the person concerned and the parties to the dispute to be heard.

17. The Standing appellate Body shall inform the parties to the dispute and the Chair of the dSB of its decision, together with relevant supporting information.

18. Following completion of the procedures in paragraphs Viii:5 to Viii:17, if the appointment of a covered person, other than a member of the Standing appellate Body, is revoked or that person is excused or resigns, the procedures specified in the dSU for initial appointment shall be followed for appointment of a replacement, but the time periods shall be half those specified in the dSU.**** The member of the Standing appellate Body who, under that Body’s rules, would next be selected through

*** Pending adoption of the Staff regulations, the director-general would act in accordance with the following draft provision for the Staff regulations: “if paragraph Viii:11 of the rules of Conduct for the dSU governing the settlement of disputes is invoked, the director-general shall consult with the person who is the subject of the evidence and the panel and shall, if necessary, take appropriate disciplinary ac-tion”.

**** appropriate adjustments would be made in the case of appointments pursuant to the agreement on Subsidies and Countervailing Measures.

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rotation to consider the dispute, would automatically be assigned to the appeal. The panel, members of the Standing appellate Body hearing the appeal, or the arbitrator, as the case may be, may then decide after consulting with the parties to the dispute, on any necessary modifications to their working procedures or proposed timetable.

19. all covered persons and Members concerned shall resolve matters involving possible material violations of these rules as expeditiously as possible so as not to delay the completion of proceedings, as provided in the dSU.

20. except to the extent strictly necessary to carry out this decision, all information concerning possible or actual material violations of these rules shall be kept confidential.

IX. Review

1. These rules of Conduct shall be reviewed within two years of their adoption and a decision shall be taken by the dSB as to whether to continue, modify or terminate these rules.

anneX 1a

arbitrators acting pursuant to the following provisions:

- articles 21.3(c); 22.6 and 22.7; 26.1(c) and 25 of the dSU;

- article 8.5 of the agreement on Subsidies and Countervailing Measures;

- articles XXi.3 and XXii.3 of the general agreement on Trade in Services.

anneX 1B

experts advising or providing information pursuant to the following provisions:

- article 13.1; 13.2 of the dSU;

- article 4.5 of the agreement on Subsidies and Countervailing Measures;

- article 11.2 of the agreement on the application of Sanitary and Phytosanitary Measures;

- article 14.2; 14.3 of the agreement on Technical Barriers to Trade.

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anneX 2

illUSTraTiVe liST oF inForMaTion To Be diSCloSed

ThislistcontainsexamplesofinformationofthetypethatapersoncalledupontoserveinadisputeshoulddisclosepursuanttotheRulesofConductfortheUnderstandingonRulesandProceduresGoverningtheSettlementofDisputes.

each covered person, as defined in Section iV:1 of these rules of Conduct has a continuing duty to disclose the information described in Section Vi:2 of these rules which may include the following:

(a) financial interests (e.g. investments, loans, shares, interests, other debts); business interests (e.g. directorship or other contractual interests); and property interests relevant to the dispute in question;

(b) professional interests (e.g. a past or present relationship with private clients, or any interests the person may have in domestic or international proceedings, and their implications, where these involve issues similar to those addressed in the dispute in question);

(c) other active interests (e.g. active participation in public interest groups or other organisations which may have a declared agenda relevant to the dispute in question);

(d) considered statements of personal opinion on issues relevant to the dispute in question (e.g. publications, public statements);

(e) employment or family interests (e.g. the possibility of any indirect advantage or any likelihood of pressure which could arise from their employer, business associates or immediate family members).

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anneX 3

dispute number: ________

World Trade organizaTion diSCloSUre ForM

i have read the Understanding on rules and Procedures governing the Settlement of disputes (dSU) and the rules of Conduct for the dSU. i understand my continuing duty, while participating in the dispute settlement mechanism, and until such time as the dispute Settlement Body (dSB) makes a decision on adoption of a report relating to the proceeding or notes its settlement, to disclose herewith and in future any information likely to affect my independence or impartiality, or which could give rise to justifiable doubts as to the integrity and impartiality of the dispute settlement mechanism; and to respect my obligations regarding the confidentiality of dispute settlement proceedings.

Signed: dated:

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general Council

GENERAL COUNCIL

iMPleMenTaTion oF ParagraPH 6 oF THe doHa deClaraTion on THe TriPS agreeMenT and PUBliC HealTH

DecisionoftheGeneralCouncilon30August2003*∗

(WT/L/540)

The general Council,

Having regard to paragraphs 1, 3 and 4 of article iX of the Marrakesh agreement establishing the World Trade organization (“the WTo agreement”);

Conducting the functions of the Ministerial Conference in the interval between meetings pursuant to paragraph 2 of article iV of the WTo agreement;

Noting the declaration on the TriPS agreement and Public Health (WT/Min(01)/deC/2) (the “declaration”) and, in particular, the instruction of the Ministerial Conference to the Council for TriPS contained in paragraph 6 of the declaration to find an expeditious solution to the problem of the difficulties that WTo Members with insufficient or no manufacturing capacities in the pharmaceutical sector could face in making effective use of compulsory licensing under the TriPS agreement and to report to the general Council before the end of 2002;

Recognizing, where eligible importing Members seek to obtain supplies under the system set out in this decision, the importance of a rapid response to those needs consistent with the provisions of this decision;

Noting that, in the light of the foregoing, exceptional circumstances exist justifying waivers from the obligations set out in paragraphs (f) and (h) of article 31 of the TriPS agreement with respect to pharmaceutical products;

Decides as follows:

1. For the purposes of this decision:

(a) “pharmaceutical product” means any patented product, or product manufactured through a patented process, of the pharmaceutical

∗ This decision was adopted by the general Council in the light of a statement read out by the Chairman, which can be found in JoB(03)/177. This statement will be reproduced in the minutes of the general Council to be issued as WT/gC/M/82.

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sector needed to address the public health problems as recognized in paragraph 1 of the declaration. it is understood that active ingredients necessary for its manufacture and diagnostic kits needed for its use would be included1;

(b) “eligible importing Member” means any least-developed country Member, and any other Member that has made a notification2 to the Council for TriPS of its intention to use the system as an importer, it being understood that a Member may notify at any time that it will use the system in whole or in a limited way, for example only in the case of a national emergency or other circumstances of extreme urgency or in cases of public non-commercial use. it is noted that some Members will not use the system set out in this decision as importing Members3 and that some other Members have stated that, if they use the system, it would be in no more than situations of national emergency or other circumstances of extreme urgency;

(c) “exporting Member” means a Member using the system set out in this decision to produce pharmaceutical products for, and export them to, an eligible importing Member.

2. The obligations of an exporting Member under article 31(f) of the TriPS agreement shall be waived with respect to the grant by it of a compulsory licence to the extent necessary for the purposes of production of a pharmaceutical product(s) and its export to an eligible importing Member(s) in accordance with the terms set out below in this paragraph:

(a) the eligible importing Member(s)4 has made a notification2 to the Council for TriPS, that:

(i) specifies the names and expected quantities of the product(s) needed5;

(ii) confirms that the eligible importing Member in question,

1 This subparagraph is without prejudice to subparagraph 1(b).2 it is understood that this notification does not need to be approved by a WTo body in order to use the

system set out in this decision.3 australia, austria, Belgium, Canada, denmark, Finland, France, germany, greece, iceland, ireland,

italy, Japan, luxembourg, the netherlands, new zealand, norway, Portugal, Spain, Sweden, Switzer-land, the United Kingdom and the United States.

4 Joint notifications providing the information required under this subparagraph may be made by the regional organizations referred to in paragraph 6 of this decision on behalf of eligible importing Members using the system that are parties to them, with the agreement of those parties.

5 The notification will be made available publicly by the WTo Secretariat through a page on the WTo website dedicated to this decision.

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other than a least-developed country Member, has established that it has insufficient or no manufacturing capacities in the pharmaceutical sector for the product(s) in question in one of the ways set out in the annex to this decision; and

(iii) confirms that, where a pharmaceutical product is patented in its territory, it has granted or intends to grant a compulsory licence in accordance with article 31 of the TriPS agreement and the provisions of this decision6;

(b) the compulsory licence issued by the exporting Member under this decision shall contain the following conditions:

(i) only the amount necessary to meet the needs of the eligible importing Member(s) may be manufactured under the licence and the entirety of this production shall be exported to the Member(s) which has notified its needs to the Council for TriPS;

(ii) products produced under the licence shall be clearly identified as being produced under the system set out in this decision through specific labelling or marking. Suppliers should distinguish such products through special packaging and/or special colouring/shaping of the products themselves, provided that such distinction is feasible and does not have a significant impact on price; and

(iii) before shipment begins, the licensee shall post on a website7 the following information:

- the quantities being supplied to each destination as referred to in indent (i) above; and

- the distinguishing features of the product(s) referred to in indent (ii) above;

(c) the exporting Member shall notify8 the Council for TriPS of the

6 This subparagraph is without prejudice to article 66.1 of the TriPS agreement.7 The licensee may use for this purpose its own website or, with the assistance of the WTo Secretariat,

the page on the WTo website dedicated to this decision.8 it is understood that this notification does not need to be approved by a WTo body in order to use the

system set out in this decision.

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grant of the licence, including the conditions attached to it.9 The information provided shall include the name and address of the licensee, the product(s) for which the licence has been granted, the quantity(ies) for which it has been granted, the country(ies) to which the product(s) is (are) to be supplied and the duration of the licence. The notification shall also indicate the address of the website referred to in subparagraph (b)(iii) above.

3. Where a compulsory licence is granted by an exporting Member under the system set out in this decision, adequate remuneration pursuant to article 31(h) of the TriPS agreement shall be paid in that Member taking into account the economic value to the importing Member of the use that has been authorized in the exporting Member. Where a compulsory licence is granted for the same products in the eligible importing Member, the obligation of that Member under article 31(h) shall be waived in respect of those products for which remuneration in accordance with the first sentence of this paragraph is paid in the exporting Member.

4. in order to ensure that the products imported under the system set out in this decision are used for the public health purposes underlying their importation, eligible importing Members shall take reasonable measures within their means, proportionate to their administrative capacities and to the risk of trade diversion to prevent re-exportation of the products that have actually been imported into their territories under the system. in the event that an eligible importing Member that is a developing country Member or a least-developed country Member experiences difficulty in implementing this provision, developed country Members shall provide, on request and on mutually agreed terms and conditions, technical and financial cooperation in order to facilitate its implementation.

5. Members shall ensure the availability of effective legal means to prevent the importation into, and sale in, their territories of products produced under the system set out in this decision and diverted to their markets inconsistently with its provisions, using the means already required to be available under the TriPS agreement. if any Member considers that such measures are proving insufficient for this purpose, the matter may be reviewed in the Council for TriPS at the request of that Member.

6. With a view to harnessing economies of scale for the purposes of enhancing purchasing power for, and facilitating the local production of, pharmaceutical products:

(i) where a developing or least-developed country WTo Member is a party to a regional trade agreement within the meaning of article XXiV of the gaTT 1994 and the decision of 28 november 1979 on

9 The notification will be made available publicly by the WTo Secretariat through a page on the WTo website dedicated to this decision.

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differential and More Favourable Treatment reciprocity and Fuller Participation of developing Countries (l/4903), at least half of the current membership of which is made up of countries presently on the United nations list of least-developed countries, the obligation of that Member under article 31(f) of the TriPS agreement shall be waived to the extent necessary to enable a pharmaceutical product produced or imported under a compulsory licence in that Member to be exported to the markets of those other developing or least-developed country parties to the regional trade agreement that share the health problem in question. it is understood that this will not prejudice the territorial nature of the patent rights in question;

(ii) it is recognized that the development of systems providing for the grant of regional patents to be applicable in the above Members should be promoted. To this end, developed country Members undertake to provide technical cooperation in accordance with article 67 of the TriPS agreement, including in conjunction with other relevant intergovernmental organizations.

7. Members recognize the desirability of promoting the transfer of technology and capacity building in the pharmaceutical sector in order to overcome the problem identified in paragraph 6 of the declaration. To this end, eligible importing Members and exporting Members are encouraged to use the system set out in this decision in a way which would promote this objective. Members undertake to cooperate in paying special attention to the transfer of technology and capacity building in the pharmaceutical sector in the work to be undertaken pursuant to article 66.2 of the TriPS agreement, paragraph 7 of the declaration and any other relevant work of the Council for TriPS.

8. The Council for TriPS shall review annually the functioning of the system set out in this decision with a view to ensuring its effective operation and shall annually report on its operation to the general Council. This review shall be deemed to fulfil the review requirements of article iX:4 of the WTo agreement.

9. This decision is without prejudice to the rights, obligations and flexibilities that Members have under the provisions of the TriPS agreement other than paragraphs (f) and (h) of article 31, including those reaffirmed by the declaration, and to their interpretation. it is also without prejudice to the extent to which pharmaceutical products produced under a compulsory licence can be exported under the present provisions of article 31(f) of the TriPS agreement.

10. Members shall not challenge any measures taken in conformity with the provisions of the waivers contained in this decision under subparagraphs 1(b) and 1(c) of article XXiii of gaTT 1994.

11. This decision, including the waivers granted in it, shall terminate for each

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Member on the date on which an amendment to the TriPS agreement replacing its provisions takes effect for that Member. The TriPS Council shall initiate by the end of 2003 work on the preparation of such an amendment with a view to its adoption within six months, on the understanding that the amendment will be based, where appropriate, on this decision and on the further understanding that it will not be part of the negotiations referred to in paragraph 45 of the doha Ministerial declaration (WT/Min(01)/deC/1).

anneX

assessment of Manufacturing Capacities in the Pharmaceutical Sector

least-developed country Members are deemed to have insufficient or no manufacturing capacities in the pharmaceutical sector.

For other eligible importing Members insufficient or no manufacturing capacities for the product(s) in question may be established in either of the following ways:

(i) the Member in question has established that it has no manufacturing capacity in the pharmaceutical sector;

or

(ii) where the Member has some manufacturing capacity in this sector, it has examined this capacity and found that, excluding any capacity owned or controlled by the patent owner, it is currently insufficient for the purposes of meeting its needs. When it is established that such capacity has become sufficient to meet the Member’s needs, the system shall no longer apply.

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negoTiaTionS on iMProVeMenTS and ClariFiCaTionS oF THe dSU – eXTenSion oF TiMeFraMe – STaTeMenT

BY THe CHairMan

(ExtractfromWT/GC/M/81)

The Chairman recalled that at the meeting of the TnC on 10 June, the director-general, as Chairman of the TnC, had suggested that any decision about a new timeframe for the dSU negotiations was for the Ministerial Conference, or the general Council under its delegated authority, to take and that it might well be possible to resolve this at the general Council level. accordingly, the director-general had suggested that the general Council Chairman be asked to undertake consultations with a view to addressing this issue as appropriate at the present meeting.

He had given some thought to this matter in light of the discussions at the TnC meeting, and had also discussed it with the Chairman of the Special Session of the dSB, as well as with delegations. it was his sense that, as suggested by the TnC Chairman, Members would, from a pragmatic point of view, be favourable to having this issue resolved at the general Council level, which would also have the benefit of avoiding an overload of the agenda for the Ministerial Conference at Cancún. He was aware that a number of delegations had emphasized that an important consideration in any decision on this matter was the fact that these negotiations were outside the single undertaking, and therefore that any decision on the timeframe for completion of work in this area should take this into account. Bearing in mind these elements, and having consulted with delegations, most recently at the meeting of Heads of delegation on 21 July, he proposed that the general Council agree as follows: (i) that the timeframe for conclusion of the negotiations on clarifications and improvements of the dSU be extended by one year, i.e., to aim to conclude the work by May 2004 at the latest; (ii) that this continued work build on the work done to date, and take into account proposals put forward by Members as well as the text put forward by the Chairman of the Special Session of the dSB; and (iii) that the first meeting of the Special Session of the dSB when it resumed its work be devoted to a discussion of conceptual ideas.

The representative of the United States thanked the Chairman for his efforts on this issue. in his delegation’s understanding, Members were not changing paragraph 30 of the doha declaration except that they would now aim to agree by May 2004 instead of May 2003. The United States had no objection to this decision.

The representative of Japan expressed his appreciation for the Chairman’s efforts in coming up with the proposal. as he had said at the meeting of the TnC, his delegation fully accepted and supported the Chairman’s proposal.

The general Council tooknote of the statements and agreed to the Chairman’s proposal.

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FolloW-UP To THe CanCún MiniSTerial ConFerenCe – rePorT BY THe CHairMan and THe direCTor-general

(ExtractfromWT/GC/M/84)

[...]

The Chairman said1 he would not try to make a full summary of what had happened over the past one and a half days. given that there had been 52 interventions, many of them on behalf of groups of countries, he felt that the positions of the vast majority of Members had been expressed. These positions and views were not particularly new to him, but the usefulness of this exercise was that countries had been able to put on record positions and views that they had expressed over the past eight weeks informally during the consultations. This added value to the work. although the present meeting had not brought a major breakthrough in the work, all had acknowledged that Members had made progress, that the key issues were clearer, that Members knew the challenges they would have to face, and that while the round was not yet back on track, they had made considerable progress in that direction. He had not sensed from the meeting any sense of failure, crisis or disappointment. rather, he had seen a pragmatic approach that more time was needed in order to deal with the unfinished business Ministers had given Members in Cancún and that Members had tried to implement over the past few weeks.

There had been a reconfirmation of engagement, and commitment to the dda and the multilateral trading system had been highlighted by all. He had even seen – as a positive feature – renewed support for efforts directed at trying to finish the round on time. This was a positive feature, because at times during the recent consultations, many had questioned the date of 2004. at the present meeting many delegations had committed themselves to do their utmost to try to fulfil that mandate. However, as he had sensed during the consultations and had reflected in his report, he had not seen at the present meeting any closing of the gap between expressions of flexibility, commitment and engagement and a translation of these into new negotiating positions that would allow Members to look for common ground or to accommodate the positions of others. This was work that would remain pending for the next few weeks. if Members wanted to make progress, they had to recapture the sense of urgency that seemed to have evaporated, as some delegations had said, and they had to narrow the gap between expressions of goodwill and commitment, and their translation into negotiating positions. Political determination and willingness to make compromises was the name of the game for the next few weeks and months ahead. He still felt that Members had a small window of opportunity to move forward, and they needed to use it to the fullest.

1 The full text of the Chairman’s closing remarks was subsequently circulated in document JoB(03)/227.

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regarding the future process, he sensed that his proposal had been generally accepted. There was a willingness to restart the work of the negotiating groups and of other bodies dealing with the doha agenda, on the understanding that restarting this work did not in any way mean losing an overview of the process or a sense of the horizontal integration of the issues, which in his view remained an essential ingredient for success. He also felt that by identifying certain issues, his report gave a sense of direction and guidance as to future work. He sensed that all wished to build on the progress and valuable work achieved so far, and avoid unravelling what had been done. Some delegations had raised procedural questions or questions which combined procedural and substantive elements concerning difficult issues on which there was so far little convergence among delegations, such as the Singapore issues. He reiterated what he had already highlighted in his report with regard to these issues, which was that the work Members had already started would continue. This meant that Members would continue to explore the possibilities of agreements on a multilateral approach on trade facilitation and transparency in government procurement, and that this work would take place at the level of the general Council with assistance from deputy director-general Mr. Yerxa. He had not made any proposals with regard to the working groups.

all Members would understand that in such a situation concerning these issues, he as Chairman could not further clarify matters on which the membership had not yet found common ground. The problem was not lack of clarity from the Chair, but rather lack of agreement among Members. These were issues on which further reflection and consultation would be necessary, and he agreed strongly with those who had cautioned against trying to negotiate with Chairs. Members could be sure that Chairs did not want this either. The urgent need was for serious negotiation among Members. as he had said in his report, the Council Chair and the director-general, who was also the TnC Chair, would continue to ensure the maintenance of a horizontal sense of the work programme, and as he had noted, some issues might require further consultation on how to take them forward. Views expressed at the present meeting, as well as in previous consultations, would of course form part of the context of any such future consultations.

He proposed that the general Council take note of his statement as well as of all the other statements that had been made during the consideration of this item.

The general Council so agreed.

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DISPUTE SETTLEMENT BODY

ProPoSed aMendMenTS To THe WorKing ProCedUreS For aPPellaTe BodY

(ExtractfromWT/DSB/M/142)

The Chairman said that, as announced at the dSB meeting on 19 december 2002, this matter had been placed on the agenda of today’s meeting pursuant to the recently adopted procedures for consultations between the Chairperson of the dSB and WTo Members in relation to amendments to the WorkingProceduresforAppellateReview contained in document WT/dSB/31 in order to enable delegations to exchange views on the recently proposed amendments as set out in annex a to document WT/aB/WP/5. He recalled that also on 19 december 2002 he had sent a fax to Heads of delegations inviting Members to provide comments in writing, if they so wished, on the proposed amendments. in this regard, he informed Members that so far no written comments have been submitted on the proposed amendments. He invited delegations to provide their views on the proposed amendments.

The representative of Canada said that his country had reviewed carefully both the proposed amendments to the WorkingProceduresforAppellateReviewwith respect to third-party participation in the oral hearing, and the related communication from the appellate Body contained in document WT/aB/WP/5 dated 19 december 2002. Canada appreciated the consideration given by the appellate Body to the issue of due process protection in its proposed amendments. it welcomed both the appellate Body’s encouragement to third parties to file written submissions, as expressed in the proposed paragraph 3 of rule 24, and its inclusion of an explicit reference to the requirements of due process in the proposed paragraph 3(b) of rule 27. However, in Canada’s view, the need to take into account due process requirements would arise in all circumstances where a third party sought to make an oral statement at the oral hearing of an appeal in which it had not filed a written submission. as drafted, the proposed rule 24(2), in conjunction with rule 27(3)(a), would allow a third party that did not file a written submission to make an oral statement simply by notifying the Secretariat in advance that it intended to appear at the oral hearing. This proposal would not require the third party to provide the parties with any notice of the issues to be addressed in its oral statement or the substance of its statement. as result, when a third party relied on these provisions, parties would have no opportunity to reflect on the expressed positions of the third party. rules 24(4) and 27(3)(b) were intended to prevent this prejudice where the third party had neither made a written submission nor had given notice of its intention to appear. it was unclear how notice of the sort contemplated by rule 24(2) could suffice to prevent the same prejudice. Canada, therefore, suggested that where, as under rule 24(2), a third party did not

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file a written submission but wished to make an oral statement, the appellate Body division hearing the appeal should have the same discretion to allow that participation as it had under rule 27(3)(b).

The representative of the United States said that her country wished to thank the Chairmen of the dSB and the appellate Body for providing this process for considering and commenting on additional amendments to the WorkingProceduresforAppellateReview. The United States had two comments. First, the United States suggested that new rule 24(4) should end with the phrase “and in any event prior to the date of the oral hearing”. Members should be encouraged in this way to state their intentions before the hearing itself, so as to avoid unnecessary use of scarce hearing time debating the question of third-party participation, especially since there could be numerous such requests to sort through at the same time. The United States did not believe it would be burdensome to at least raise this issue by at least the day before the hearing. The United States would also appreciate further clarification of the effective date of the amendments. it was the US understanding that the last amendments were effective with respect to appeals in which third participants’ written submissions were due after 27 September 2002. The United States wished to know if the new amendments would similarly apply to appeals in which the deadline for the filing of third participants’ written submissions fell after 15 February 2003.

The representative of india said that his country wished to thank the appellate Body for its explanation on proposed modifications to its working procedures. india was not able to understand the distinction made between “party” and “participant” as well as between “third party” and “third participant” in the proposed WorkingProceduresforAppellateReview. There was no such distinction in the dSU. it was the appellate Body’s working procedures, which made such distinction. This, as pointed out by the appellate Body in its explanatory note, had created “rigidity ... with respect to rules relating to third party participation in the (aB’s) oral hearing ...”. india would have appreciated had the appellate Body done away with such artificial distinction. However, india noted the appellate Body’s recognition about possibility of undertaking comprehensive review and revision of its working procedures in future, perhaps, upon completion of the ongoing dSU negotiations. india hoped that then this artificial and rigid distinction would go away.

The representative of ecuador said that his country had noted document WT/aB/WP/5 and was grateful for this opportunity to make comments. ecuador had also noted the application of the guidelines approved by the dSB in december 2002 regarding holding consultations between the appellate Body and the Chairman of the dSB on amendments to the WorkingProceduresforAppellateReview. These guidelines had given an appropriate and adequate opportunity, in a transparent environment, for Members to comment on proposed amendments. ecuador was pleased to see that the appellate Body at this time had made an effort to give due information to Members regarding the proposed amendments. The information provided by the

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appellate Body also contained the reasons for the proposed amendments, which reflected the comments that some Members, including ecuador, had made regarding the practice which in the past had been adopted by the appellate Body with regard to the participation of third parties in the appellate Body’s hearings. The proposed amendments, to a certain extent, harmonized the treatment given to third parties in the panel and the appellate Body phases. in ecuador’s view, this was as a positive development as it recognized the rights of third parties to follow their interests in all phases of the process. This, in turn would strengthen the system by enabling interested third parties to contribute to each stage in the dispute settlement process.

The representative of Japan said that her country welcomed the initiative taken by the appellate Body to consult with the dSB prior to amending the Working Procedures, and expressed its gratitude to the Chairman of the dSB for inviting comments from delegations. Japan would submit written comments and at the present meeting it wished to highlight some points in this regard. Her delegation would appreciate if the Chairman could forward these written comments to the appellate Body and inform delegations of further communications from the appellate Body. Japan noted the reference by the appellate Body to a meeting with the dSB Chairman and others, and reiterated its strong interest to participate in such a meeting. With regard to the proposed rule 1, the meaning of the word “participate” was not clear in the definition of a third participant. if “participate” meant more than just to appear at the oral hearing, a third party might not know, until after the oral hearing where the discretion under proposed rule 27(3)(b) was exercised, if it had indeed become a “third participant”. an important legal question still existed on the relationship between article 17.4 of the dSU and proposed rule 27(3)(b). article 17.4 of the dSU explicitly stipulated third-party right to be heard by the division. However, proposed rule 27(3)(b) left uncertainty as to whether the right to be heard would be conferred or not, since it provided that the division had the discretion to decide whether a third party might “appear”, “make an oral statement”, and “respond to questions”. With regard to rules 27(3)(a) and 27(3)(b), it was not clear which provision applied to a third party that notified only an intention to appear at the oral hearing pursuant to rule 24(2) and subsequently requested to make an oral statement pursuant to 24(4). rule 27(3)(b) gave the appellate Body the discretion to allow a third party to respond to questions, although a third party could not specify in the notification pursuant to rule 24(4) if it wished to respond to questions or not. Japan would appreciate explanations from the appellate Body as to why this was the case. With regard to rules 16(1), 18(5) and 19, Japan would like to confirm its understanding that the proposed changes would enhance the applicability of these provisions to cover parties that were not participants and third parties that were not third participants. if this was the case, Japan welcomed these changes. at the same time, Japan sought clarifications as to why rules 28(1) and 28(2) were not amended as well. in this connection, some rules specifically listed four categories of Members: i.e. parties to the dispute, participants, third parties and third participants [rules 16(2), 18(2), 18(3) 18(4) and 27(2)]. others listed only

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two categories, namely, parties to the dispute and third parties [rules 21(1), 22(1), 25(2) and 26(4)]. Japan wished to know if this was due to substantive differences, and if so, what they were and why they existed. if there were no differences, Japan sought indication from the appellate Body if it intended to unify the texts at this juncture.

The representative of the european Communities said that the eC supported the appellate Body’s proposal on further amendments to rules 1, 24(4), and 27 as well as on additional consequential amendments to rules 16(1), 18(5), 19, 28 and to annex 1. The proposed rules had appropriately put an end to the undesirable practice of the “passive observers” and reflected a correct interpretation of the dSU provisions on third-party rights, notably article 10. The eC also wished to thank the appellate Body for the additional explanations on how it would exercise its discretion in applying these new regulations.

The Chairman said that, in accordance with the dSB’s decision adopted on 19 december 2002, it was his intention to transmit to the appellate Body the views expressed by Members on the proposed amendments at the present meeting. He would then request the appellate Body to take these views into account. He noted that Japan had requested more time in order to submit comments in writing and possibly other delegations who had not taken the floor at the present meeting might wish to avail themselves of some additional time for this purpose. He, therefore, proposed that Members’ comments on the proposed amendments would be sent to the appellate Body by the end of this month; i.e. on 31 January 2003. Those delegations, like Japan, wishing to provide additional comments in writing would have until that time to do so. With regard to the clarification requested by the United States regarding the effective date of the application of these amendments, it was his intention when he would transmit Members’ comments on the proposed amendments to the appellate Body to ask the Chairman of the appellate Body to confirm the effective date of the amendments. He would also ask that the effective date be communicated to all Members. He reiterated that he would give additional time to delegations to submit any written comments that might have on the proposed amendments. Subsequently, in accordance with the agreed procedures (WT/dSB/31), he would convey these comments to the appellate Body and request the appellate Body to take them into account. at the same time, he would request confirmation of the effective date for application of these amendments and ask the appellate Body to communicate this information to all Members.

The dSB tooknote of the statements and agreed to the course of action proposed by the Chairman with regard to Members’ comments on the proposed amendments to the WorkingProceduresforAppellateReview.

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Extractfrom(WT/DSB/M/147)

The Chairman, speaking under “other Business”, drew Members’ attention to the letter, which he had received on 10 april 2003, from Mr. James Bacchus, the Chairman of the appellate Body. The letter indicated that, having taken into account the comments made by delegations on the proposed amendments to the WorkingProceduresforAppellateReview, contained in document WT/aB/WP/5, which had been circulated on 19 december 2002, and having completed consultations with the director-general and the Chairman of the dSB on this matter, the appellate Body had prepared the final version of the amendments. The letter also included an explanation of the adjustments made to the proposed amendments circulated in december 2002. as indicated by the appellate Body, these amendments would take effect on 1 May 2003 and a revised consolidated version of the WorkingProcedures of the appellate Body would also be circulated in the three WTo languages on that date. He said that the Chairman Bacchus’ letter, which contained the amendments, had been circulated as document WT/aB/WP/6 on 10 april 2003.

The dSB tooknote of the statement.

aPPoinTMenT oF aPPellaTe BodY MeMBerS


The Chairman recalled that at the informal dSB meeting on 16 July 2003, he had informed Members of his intention to ask the dSB to take a decision on certain matters relating to the process leading up to an eventual decision on four positions on the appellate Body. He also recalled that on 10 december 2003, Mr. James Bacchus’ second and final term of office as appellate Body Member would expire. on the same date, Mr. Yasuhei Taniguchi’s first term of office would also expire. in addition, on 31 May 2004, the first terms of office of two other appellate Body Members, Messrs. georges abi-Saab and a.V. ganesan, would expire. as provided for under article 17.3 of the dSU, “The appellate Body shall comprise persons of recognized authority, with demonstrated expertise in law, international trade and the subject matter of the covered agreements generally. They shall be unaffiliated with any government. The appellate Body membership shall be broadly representative of membership in the WTo. …”. He further recalled that under article 17.2 of the dSU “The dSB shall appoint persons to serve on the appellate Body for a four-year term, and each person may be reappointed once.” The reappointment of appellate Body Members for a second term of office was not automatic and required consideration by, and a formal decision of, the dSB. in the past, the dSB had renewed the terms of office of

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five appellate Body Members.1 in fact, the dSB had always reappointed appellate Body Members who wished to serve a second term. it was, therefore, for the dSB to take action to ensure that the impending expiry of the terms of appellate Body Members did not disrupt the smooth and continuous functioning of the appellate Body. in making this proposal, he had fully taken into consideration this important requirement.

This year, the dSB had to appoint at least one new person to the appellate Body to replace Mr. Bacchus, whose second term of office would expire on 10 december. The dSB must also consider what decision to take on the positions currently held by the three other appellate Body Members who were eligible to serve a second term of office, under article 17.2 of the dSU. These appellate Body Members were Messrs. Taniguchi, abi-Saab and ganesan. all three gentlemen had indicated that they would welcome the opportunity to serve on the appellate Body for a second term. The term of office of Mr. Taniguchi would expire on 10 december 2003 and the dSB must, therefore, take a decision on the position he currently held in the coming months. The terms of office of Messrs. abi-Saab and ganesan would not expire until 31 May 2004. although the dSB could theoretically take a decision on these two positions early in 2004, he wished to suggest that it would be more efficient for the dSB to deal with these positions together with the two other positions for which the terms of office would expire on 10 december 2003 (the positions currently held by Messrs Bacchus and Taniguchi), all as part of the same process. The decision of the dSB regarding the positions currently held by Messrs. abi-Saab and ganesan would not, of course, take effect until 1 June 2004. given all of these circumstances, he hoped that, at the present meeting, the dSB would take a decision on several matters. as explained in the informal meeting held on 16 July he wished to propose that the dSB agree on the following five points: (i) to launch, as from the date of the present meeting the process for selecting a new appellate Body Member to replace Mr. Bacchus, and also the process leading up to a decision on the positions held by Messrs. Taniguchi, abi-Saab and ganesan; (ii) with respect to the process for selecting a new appellate Body Member to replace Mr. Bacchus, that the dSB follow the procedures set out in the decision of the dSB dated 10 February 1995 (WT/dSB/1), and, in accordance with them, agree to establish a selection committee consisting of the director-general and the 2003 Chairpersons of the general Council, the goods Council, the Services Council, the TriPs Council and the dSB; (iii) with respect to this process of selecting a new appellate Body Member to replace Mr. Bacchus, that the closing date for the nomination of candidates by delegations be Friday, 5 September 2003, and that the selection committee make its recommendation

1 in 1997, the dSB renewed the term of office of three appellate Body Members (ehlermann; Feliciano; and lacarté Muró); in 1999, the dSB renewed the term of office of two appellate Body Members (Bacchus; and Beeby). in two cases, appellate Body Members have not wished to serve a second term (el-naggar; and Matsushita).

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to the dSB by 24 october 2003; (iv) that the decisions on the four positions in the appellate Body be taken by the dSB at its meeting on 7 november; and (v) with regard to the positions currently held by Messrs. Taniguchi, abi-Saab and ganesan, that he carry out consultations with delegations, over the next three weeks, with a view to informing the dSB, by 15 august 2003, of the results of these consultations.

[...]

The dSB took note of the statements and agreed to the Chairman’s proposal.


The Chairman recalled that, at its meeting on 21 and 23 July 2003, the dSB had agreed that he should conduct consultations with delegations regarding the positions on the appellate Body currently held by Messrs. abi-Saab, ganesan and Taniguchi. accordingly, he had invited delegations with an interest in this matter to contact him and, between 23 July and 14 august, he had communicated with all such delegations. on Friday, 15 august, he had informed Members, by fax, of the results of his consultations, and he wished to do the same, orally, at the present meeting. He said that no delegation had indicated that it wished to nominate candidates to replace Messrs. abi-Saab, ganesan, and Taniguchi, while there were those delegations that had indicated their wish to reappoint them. These delegations he had contacted were also all of the view that a decision on reappointment of these three individuals should be taken by the dSB at its meeting on 7 november 2003. in light of the views of Members, he would, therefore, like to propose at the present meeting that a decision on reappointment of Messrs. abi-Saab, ganesan and Taniguchi be taken by the dSB on 7 november 2003.

The dSB took note of the statement and agreed that a decision on reappointment of Messrs. abi-Saab, ganesan and Taniguchi be taken by the dSB at its meeting on 7 november 2003.

The Chairman further stated that he also wished to remind delegations that, according to the decision taken by the dSB at its meeting on 21 and 23 July 2003, the process for selecting a new member of the appellate Body to replace Mr. Bacchus was underway. at that meeting, the dSB had decided that this process would be conducted in accordance with the procedures set out in the decision of the dSB dated 10 February 1995 (WT/dSB/1). in this context, he wished to remind delegations that nominations, together with the curricula vitae of candidates, should be submitted to the director-general and copied to the Chairman of the dSB. as agreed, the deadline for nominations of candidates was 5 September 2003. Following the 5 September deadline, he would inform Members of the candidates who had been nominated. as it had been done in the past, the curricula vitae of the candidates would be circulated

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as JoB documents to all Members. The Selection Committee – consisting of the director-general and the 2003 Chairpersons of the general Council, the goods Council, the Services Council, the TriPS Council and the dSB – would begin its work after the deadline of 5 September 2003. The selection process would, as in the past, include an opportunity for delegations to share their views on candidates with the Selection Committee. as decided by the dSB at its meeting on 21 and 23 July 2003, the Selection Committee would complete its work and make its recommendation to the dSB by 24 october 2003; and a decision on a replacement for Mr. Bacchus would be taken by the dSB at its meeting on 7 november 2003.

The dSB tooknote of the statement.


The Chairman, speaking under “other Business”, said that as he had announced at the beginning of the meeting, he wished to make a statement concerning the selection process for appointment of a new appellate Body member. as Members were aware, two candidates had been nominated for this position by the United States. a paper containing the curricula vitae of these candidates had been circulated as Job no. 6859 on 9 September. He recalled that the Selection Committee, which had been established by the dSB at its meeting on 21 and 23 July 2003 had been requested to make a recommendation to the dSB on the appointment by no later than 24 october so that the dSB could take a decision on the appointment at its meeting on 7 november. He also wished to recall that, as agreed by the dSB at its meeting on 18 august, the dSB would also take a decision on the reappointment of Messrs. abi-Saab, ganesan, and Taniguchi at the same 7 november meeting.

at the present meeting, he wished to inform delegations that he, as Chairman of the Selection Committee, intended to convene the Selection Committee to interview the two candidates sometime during the weeks of 6 and 13 october 2003. The candidates would also be available for meetings with individual delegations during these weeks upon request. individual delegations wishing to meet with the candidates would be asked to contact the US Mission to make the necessary arrangements. Consistent with previous practice, the Selection Committee would also be available to meet, upon request, with any interested delegations who would wish to express their views on the candidates directly in person to the Selection Committee in the week of 13 october 2003. delegations wishing to do so were invited to contact the Secretariat (Council and TnC division).

The representative of the United States said that his country wished to thank the Chairman for the information provided on the selection process. The Unites States also wished to confirm that the US Mission would be pleased to make arrangements for delegations that would wish to meet Prof. Janow and Mr. lighthizer, individually,

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while they were in geneva for meetings with the Selection Committee.

The dSBtooknote of the statements.


The Chairman said that this item was on the agenda of the present meeting pursuant to the decisions taken by the dSB at its meetings on 21 and 23 July as well as on 18 august 2003. He recalled that at its meeting on 21 and 23 July, the dSB had agreed to launch the process for selecting a new appellate Body member to replace Mr. James Bacchus as well as the process leading up to a decision on the positions held by Messrs. abi-Saab, ganesan and Taniguchi. at that meeting it had also been agreed that the decision on all four positions should be taken by the dSB at its meeting on 7 november. With regard to the positions held by Messrs. abi-Saab, ganesan and Taniguchi, the dSB had agreed that the Chairman should carry out consultations with delegations with the view to informing them by 15 august of the results of these consultations. He had conducted consultations between 23 July and 15 august and had reported on the results of these consultations to Members by fax on 15 august and at the dSB meeting held on 18 august. He recalled that he had reported that no delegation had indicated that they wished to nominate candidates to replace Messrs. abi-Saab, ganesan and Taniguchi, while there were those who had indicated their wish to reappoint them. The dSB had agreed at that meeting that a decision on reappointment of Messrs. abi-Saab, ganesan and Taniguchi should be taken at the 7 november dSB meeting. at the present meeting, he wished to propose that the dSB first take a decision on the replacement for Mr. James Bacchus and then on reappointments of Messrs. Messrs. abi-Saab, ganesan and Taniguchi. Subsequently, he would invite delegations wishing to make statements or comments to take the floor.

The dSB so agreed.

The Chairman recalled that on 24 october 2003, delegations had received a fax from ambassador Pérez del Castillo, which had been sent on behalf of the Chairman of the dSB, informing them of the conclusion reached by the Selection Committee, which the Chairman of the dSB had chaired. He recalled that the Selection Committee had been established by the dSB with a view to making a recommendation on replacement for Mr. James Bacchus, whose term of office would expire on 10 december 2003. The Selection Committee had conducted thorough interviews with the two nominated candidates and had made itself available to hear the views of Members. Throughout the process, the Committee had constantly in mind the guidelines, rules and procedures in the dSU and WT/dSB/1 governing the selection and appointment of appellate Body members. as announced on 24 october, the Selection Committee had reached a firm recommendation that Professor Merit

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Janow be appointed as a member of the appellate Body to replace Mr. James Bacchus. The Selection Committee had indicated that Professor Merit Janow was an outstanding individual who was highly qualified for appointment to the appellate Body. Therefore, in light of this recommendation, he proposed that the dSB agree to appoint Professor Merit Janow as a member of the appellate Body for a four-year term of office commencing on 11 december 2003.

The dSB so agreed.

The Chairman then turned to the issue of reappointments of Messrs. abi-Saab, ganesan and Taniguchi. He proposed that the dSB agree to the following: (i) to reappoint Mr. Taniguchi for a second four-year term of office commencing on 11 december 2003; (ii) to reappoint Mr. abi-Saab for a second four-year term commencing on 1 June 2004; and (iii) to reappoint Mr. ganesan for a second four-year term commencing on 1 June 2004.

The dSB so agreed.

The representative of the United States said that her country wished to thank the Chairman and the other members of the Selection Committee for their hard work and the recommendation which had aided the dSB in taking its decision at the present meeting. The United States also wished to thank all delegations who had taken the time to meet with the candidates and to express their views to the Committee. The United States also wished to express its appreciation for the efforts of the Secretariat throughout the selection process. The decision taken at the present meeting would contribute to the continuing effectiveness of the appellate Body as it played its vital role in the WTo system. The United States appreciated the significant contributions which Messrs. Taniguchi, abi-Saab and ganesan had made to the work of the appellate Body during their service to date, and welcomed the decision by the Members to reappoint them so that Members might continue to have the benefit of their learning and wisdom. The United States also welcomed the appointment of Professor Merit Janow to take the seat soon to be vacated by Mr. James Bacchus. as Members were aware, Professor Janow had a distinguished career in both the practical and academic side of trade law and policy. She had been serving for several years as a professor at Columbia University in new York, where she had been actively involved in issues relating to international trade, business and antitrust law. Previously, she worked as a trade negotiator and as a practicing trade lawyer. The United States believed that the depth and breadth of experience she would bring to her work on the appellate Body would allow her to make a significant and positive contribution. The United States knew that the appellate Body would be facing many complex and important issues, and knew that these individuals would all rise to the many challenges presented. The United States looked forward to working with them as their new terms were to begin. The United States also wished to take this opportunity to express its gratitude for the extraordinary work done by Mr. Bacchus since the inception of the

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appellate Body. He had played a critical role in shaping the appellate Body into the respected institution it had become, and he had done so with intelligence, diligence, and wit. The foundations he helped to lay would support the successful operation of the appellate Body for years to come.

The representative of Canada recalled that those delegations who had been present at the appellate Body hearing in the Steel case had witnessed the last participation of Mr. Bacchus in an appellate Body hearing when tributes had been paid to him at that time. Canada wished simply to echo the sentiments expressed by the United States and to put on the record Canada’s appreciation for the contribution of Mr. Bacchus to the dispute settlement process and to the WTo in general. Canada also wished to add its endorsement of the wisdom of the Selection Committee in selecting Professor Janow.

The representative of egypt said that his country wished to thank the Chairman and the members of the Selection Committee for the consultations held in order to select a new member and to reappoint, for the second term, three members of the appellate Body. all Members recognized the vital role of the appellate Body as a main pillar of the dispute settlement mechanism. egypt welcomed the decision of the Selection Committee.

The representative of Japan said that her delegation wished to join other delegations in welcoming the two decisions the dSB had just taken and wished to express gratitude to the Chairman and all the members of the Selection Committee who had taken the time to conduct interviews with the two candidates. Japan also wished to express its gratitude to the two candidates put forward by the United States and to the US delegation for the opportunity to meet with the two candidates in person. These meetings had taken place in Japan’s mission with the deputy Permanent representative. Japan welcomed the new member of the appellate Body, Professor Janow who, Japan was convinced, would make a vital contribution to the appellate Body. Japan also welcomed the reappointment of the three incumbent members who, Japan believed, would continue to contribute to the appellate Body’s work. Her delegation wished to take this opportunity to express its gratitude to Mr. Bacchus for his contribution. She noted that all delegations had benefited from his personality and a very good sense of humour. Finally, her delegation wished to thank the Secretariat for its assistance in arranging the necessary interviews with the two candidates.

The representative of the european Communities said that the eC wished to thank the Selection Committee for its work. The eC regarded the appellate Body as a fundamental pillar of the WTo architecture. of course, the high quality of the Members of such body was an essential precondition for ensuring that the dispute settlement mechanism performed its role of providing security and predictability to the multilateral trading system. The selection of Ms Janow, as well as the reappointment of Mr. abi-Saab, Mr. ganesan and Mr. Taniguchi, was a very encouraging sign in this

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sense. The eC was convinced of the capacity of these individuals to maintain the highest level of legal expertise and authority necessary to perform the delicate and difficult task that the dSU entrusted to them.

The representative of india said that his delegation wished to congratulate the Chairman for the smooth and efficient conduct of the process of appointment and reappointment of appellate Body members. india also wished to thank the Selection Committee under the Chairmanship of Mr. Shotaro oshima (Japan) for the successful completion of the task of selection of a candidate to replace Mr. Bacchus who would complete his eight year term as an appellate Body member later this year. india joined other delegations in its expression of appreciation and gratitude to the excellent work done by Mr. Bacchus in the high responsibility that he had held with such distinction. india wished to congratulate Professor Janow on her appointment to the appellate Body. it also wished to express its thanks to the US Mission for facilitating meetings with the indian mission with both the candidates and the Secretariat for its assistance. He wished to place on record india’s deep appreciation to the three appellate Body members, Mr. abi-Saab, Mr. ganesan and Mr. Taniguchi who had been reappointed for another term of four years for their eminent contribution in the important office held by them.

The representative of australia said that first, he wished to add australia’s voice to those who had welcomed the Selection Committee’s decision to reappoint the three members of the appellate Body and to appoint Professor Merit Janow. Second, he congratulated the Chairman and the other members of the Selection Committee on an excellent process of the selection procedure and, like others, wished to pay tribute to Mr. Bacchus for his great contribution to the appellate Body over the past eight years.

The dSB tooknote of the statements.

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COUNCIL FOR TRADE IN GOODS

COMMITTEE ON CUSTOMS VALUATION

deCiSionS on eXTenSionS oF delaY PeriodS aS Well aS on MiniMUM ValUeS aCCording To ParagraPHS 1 and 2, anneX iii oF THe agreeMenT on iMPleMenTaTion oF arTiCle Vii oF THe

general agreeMenT on TariFF and Trade in 1994

The following table lists the decisions adopted in 2003 by the Committee on Customs Valuation on extensions of delay periods according to paragraph 1, annex iii of the agreement on implementation of article Vii of the general agreement on Tariff and Trade in 1994, as well as on minimum values according to paragraph 2, annex iii of the agreement on implementation of article Vii of the general agreement on Tariff and Trade in 1994.

Member Type of request decision of expiry document

Sri lanka decision Concerning Paragraph 2 of annex iii of the agreement on implementation of article Vii of the general agreement on Tariffs and Trade 1994

28 February 2003

28 February 2005

g/Val/53

United arab emirates

decision Concerning annex iii, Paragraph 1 of the agreement on implementation of article Vii of the general agreement on Tariffs and Trade 1994

23 May 2003 31 december 2003

g/Val/55

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Committee on Subsidies and Countervailing Measures

COMMITTEE ON SUBSIDIES AND COUNTERVAILING MEASURES

eXTenSion Under SCM arTiCle 27.4 oF THe TranSiTion Period Under arTiCle 27.2(B) For THe eliMinaTion oF eXPorT SUBSidieS

The following table lists all decisions adopted in 2003 relating to extensions under the SCM article 27.4 of the transition period under the SCM article 27.2(b) for the elimination of export subsidies, pursuant to the procedures in g/SCM/39 or pursuant to paragraph 10.6 of the Ministerial decision on implementation-related issues and Concerns.

Member Type decision of document

antigua and Barbuda

Fiscal incentives act Cap 172 28 october 2003 g/SCM/50/add. 1

antigua and Barbuda

Free Trade and Processing zone act no. 12 of 1994

28 october 2003 g/SCM/51/add. 1

Barbados Fiscal incentive Programme 28 october 2003 g/SCM/52/add. 1

Barbados export allowance 28 october 2003 g/SCM/53/add. 1

Barbados research and development allowance


Barbados international Business incentives


Barbados Societies with restricted liability


Belize Fiscal incentives act 28 october 2003 g/SCM/57/add. 1

Belize export Processing zone act 28 october 2003 g/SCM/58/add. 1

Belize Commercial Free zone act 28 october 2003 g/SCM/59/add. 1Belize Conditional duty exemptions

Facility under the Treaty of Chaguaramas


Costa rica Free zone regime 28 october 2003 g/SCM/61/add. 1

Costa rica inward Processing regime 28 october 2003 g/SCM/62/add. 1

dominica Fiscal incentives Programme 28 october 2003 g/SCM/63/add. 1

dominican republic

law no. 8-90 to “Promote the establishment of new Free zones and expand existing ones


el Salvador export Processing zones and Marketing act, as amended


Fiji Short-term export Profit deduction


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Fiji export Processing Factories/export Processing zones Scheme

8 december 2003

g/SCM/67/add. 1

Fiji The income Tax act (Film Making and audio Visual incentive amendment decree 2000)


grenada Fiscal incentives act no. 41 of 1974


grenada Statutory rules and orders no. 37 of 1999


grenada Qualified enterprises act no. 18 of 1978


guatemala exemption from Company Tax, Customs duties and other import Taxes for Companies under Special Customs regimes


guatemala exemption from Company Tax, Customs duties and other import Taxes for the Production Process relating to activities of Managers and Users of Free zones


guatemala exemption from Company Tax, Customs duties and other import Taxes for the Production Process of Commercial and industrial enterprises operating in the industrial and Free Trade zone


Jamaica export industry encouragement act


Jamaica Jamaica export Free zone act 28 october 2003 g/SCM/76/add. 1

Jamaica Foreign Sales Corporation act 28 october 2003 g/SCM/77/add. 1

Jamaica industrial incentives (Factory Construction) act 28 october 2003 g/SCM/78/add. 1

Jordan Partial or Total exemption from income Tax of Profits generated from exports under law no. 57 of 1985, as amended


Mauritius export enterprise Scheme 28 october 2003 g/SCM/80/add. 1

Mauritius Pioneer Status enterprise Scheme


Mauritius export Promotion 28 october 2003 g/SCM/82/add. 1

Mauritius Freeport Scheme 28 october 2003 g/SCM/83/add. 1

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Committee on Technical Barriers to Trade

253


Panama official industry register 28 october 2003 g/SCM/84/add. 1

Panama export Processing zones 28 october 2003 g/SCM/85/add. 1

Papua new guinea

Section 45 of the income Tax 8 december 2003 g/SCM/86/add. 1

St. lucia Fiscal incentives act, no. 15 of 1974


St. lucia Free zone act, no. 10 of 1999


St. lucia Micro and Small Scale Business enterprises act, no. 19 of 1998


St. Kitts and nevis

Fiscal incentives act no. 17 of 1974


St. Vincent and The grenadines

Fiscal incentives act no. 5 of 1982, as amended


Uruguay automotive industry export Promotion regime


Colombia Free-zone regime 8 december 2003

g/SCM/93/add. 1 & add. 1/Suppl. 1

Colombia Special import-export System for Capital goods and Spare Parts (SieX)

8 december 2003 g/SCM/94/add. 1

COMMITTEE ON TECHNICAL BARRIERS TO TRADE

THird Triennial reVieW oF THe oPeraTion and iMPleMenTaTion oF THe agreeMenT on TeCHniCal

BarrierS To Trade

AdoptedbytheCommitteeonTechnicalBarrierstoTradeon7November2003(G/TBT/13)

i. inTrodUCTion

1. The agreement on Technical Barriers to Trade (TBT agreement) provides that: “not later than the end of the third year from the date of entry into force of the WTo agreement and at the end of each three-year period thereafter, the Committee shall review the operation and implementation of this agreement, including the provisions relating to transparency, with a view to recommending an adjustment of the rights and obligations of the agreement where necessary to ensure mutual economic advantage and balance of rights and obligations, without prejudice to the

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provisions of article 12. Having regard, interalia, to the experience gained in the implementation of the agreement, the Committee shall, where appropriate, submit proposals for amendments to the text of this agreement to the Council for Trade in goods” (article 15.4).

2. The Committee concluded the First and Second Triennial reviews of the operation and implementation of the TBT agreement on 13 november 1997 (g/TBT/5) and 10 november 2000 (g/TBT/9) respectively.

3. Pursuant to the Second Triennial review, a number of actions were taken to raise awareness of the transparency provisions of the agreement and improve its implementation: a Special Meeting on Procedures for information exchange was held on 28 June 20011 and a booklet on the transparency obligations of the agreement was prepared by the Secretariat in april 2002.2 Furthermore, as part of the technical assistance work programme agreed to in the Second Triennial review, a Special Workshop on the TBT-related Technical Cooperation Programme was held on 18 March 2003. With the objective of improving Members’ understanding of the preparation, adoption and application of labelling requirements in the context of the implementation of the agreement, as well as of the impact of such requirements on market access, a learning event on labelling, which focussed on developing country Members’ concerns, was held on 21-22 october 2003.

4. The Committee concluded the Third Triennial review of the agreement at its meeting of 7 november 2003. This document sets out the outcome of the review based on the discussion of the following elements:3 (a) the implementation and administration of the agreement, (B) good regulatory practice, (C) transparency procedures, (d) conformity assessment procedures, (e) technical assistance and special and differential treatment and (F) other elements.

ii. eleMenTS oF THe THird Triennial reVieW

a. iMPleMenTaTion and adMiniSTraTion oF THe agreeMenT

5. The TBT agreement provides that: “each Member shall, promptly after the date on which the WTo agreement enters into force for it, inform the Committee of measures in existence or taken to ensure the implementation and administration of the agreement” (article 15.2). it also provides that: “each Member shall ensure that an enquiry point exists which is able to answer all reasonable enquiries from other Members and interested parties in other Members” (article 10.1).

1 The Chairman’s report is contained in annex 1 of g/TBT/M/24.2 The booklet can be downloaded from the WTo/TBT website.3 a list of documents related to the Third Triennial review is contained in annex 1.

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6. Since the Second Triennial review, 15 Members have submitted their statements of implementation under article 15.24, and several have updated their original statements.5 Two Members submitted information on their experience in the implementation and administration of the agreement.6

7. in total, 92 Members have submitted their statements under article 15.27, and 121 Members have submitted information on their national enquiry points8(see annex 2). The Committee reiterates the importance of Members fulfilling their obligations under articles 15.2 and 10.1.

reCoMMendaTion

- in order to assist Members in meeting their obligations under articles 15.2 and 10.1, the Committee invites Members to seek assistance from other Members that have done so to share their knowledge and experience in this regard.

B. good regUlaTorY PraCTiCe

8. at the First Triennial review, the Committee reiterated that good regulatory practice for the preparation, adoption and application of technical regulations was a priority for Members to facilitate trade. Members were invited to submit descriptions of their approach to technical regulations. at the Second Triennial review, the Committee noted that minimizing the use of mandatory technical regulations and utilizing voluntary international standards, where appropriate, could reduce the regulatory burden and open up market access opportunities.

9. The Committee notes that good regulatory practice can contribute to the effective implementation of the TBT agreement, namely in the avoidance of unnecessary obstacles to trade in the preparation, adoption and application of technical regulations (including associated standards) and conformity assessment procedures, including those related to labelling.

10. The Committee recognizes that for a Member to achieve good regulatory practice and to comply with the agreement at the domestic level, it may be necessary

4 g/TBT/2/add. 62-76.5 g/TBT/2/Suppl.1, g/TBT/2/add.5/Suppl.2, add.6/rev.1, add.8/rev.1 and Suppl.1, add.21/Suppl.3, add.26/rev.2 and Suppl.1, add.32/rev.2, add.51/Suppl.1 and add.58/rev.2 . 6 g/TBT/W/166 and 199.7 g/TBT/2/ and add.1-76.8 a list of these enquiry points is contained in document g/TBT/enQ/23.

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both to develop domestic policies or regulatory processes, and to establish administrative mechanisms to ensure that all relevant bodies are aware of and understand their obligations under the agreement and know how to comply with them. in addition, domestic coordination and cooperation, including with local governments, as well as with non-governmental parties, is important.

11. The Committee underlines the importance of regulators considering the use of different approaches to fulfil legitimate objectives and their taking into account the least-trade restrictive options available to them. in this respect, the Committee noted that regulatory impact assessments could be useful and the use of mandatory measures should be minimized.

12. at the Second Triennial review, the Committee reiterated the importance of giving positive consideration to accepting as equivalent technical regulations of other Members as provided for under article 2.7. The Committee also noted that, as an interim measure until suitable international standards were developed, in some cases, standardizing bodies or regulators in some Members had chosen to accept as equivalent standards originating from other Members, even though these standards differed from their own, on the basis that such standards fulfilled their objectives.

13. For the Third Triennial review, the Committee notes that equivalency can be an element of good regulatory practice (and is also relevant to conformity assessment as foreseen under article 6.1). Moreover, it should not detract from the development of international standards. in considering equivalence, Members must have regard to their general obligations, including those with respect to transparency and non-discrimination.

reCoMMendaTionS

14. The issue of good regulatory practice is important, evolving, and worthy of further discussion in the TBT Committee. To further its work on good regulatory practice, the Committee agrees to:

- invite Members to exchange experiences related to the identification of elements of good regulatory practice at the domestic level;

- continue its exchanges on Members’ experiences and focus its discussion, on, inter alia, choice of policy instruments, mandatory versus voluntary measures, and the use of regulatory impact assessments to facilitate good regulatory practice; and to

- initiate a process of sharing experiences on equivalency in the Committee particularly with regard to how the concept is implemented in practice.

C. TranSParenCY ProCedUreS

15. at the Second Triennial review, a number of decisions and recommendations were made with a view to facilitating the access to information and further improving

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the notification procedures.9 The Committee agreed to continue exploring ways to shorten the time for the submission, publication and circulation of notifications, as well as steps to facilitate the electronic transmission of information among Members. in response to a request made at the Second Triennial review, monthly tables of notifications have been prepared by the Secretariat since January 200110 to provide a brief indication of the notifications issued.

16. The Committee reiterates the importance of Members fulfilling their transparency obligations under the agreement, in particular, those related to the notification of draft technical regulations and conformity assessment procedures as required under articles 2.9, 2.10, 5.6 and 5.7. it notes that the fulfilment of transparency obligations can contribute to the avoidance of unnecessary obstacles to trade. notification procedures, and the opportunity for comments, provide Members with the opportunity to influence final requirements of other Members, and could enhance harmonization as well as lead to the transfer of technology.

Sharing of information on Proposed Technical regulations and Conformity assess-ment Procedures

17. The Committee notes the usefulness of Members sharing information, on a voluntary basis, on the future development of draft technical regulations and conformity assessment procedures before the relevant notifications are made. This would increase transparency and improve the opportunity for comments. This could be done electronically. Members are encouraged to draw the attention of the Committee to such information.

18. Furthermore, the Committee draws the attention of Members to their obligations under articles 2.9.1 and 5.6.1 of the agreement to publish a notice in a publication on the introduction of a particular technical regulation or conformity assessment procedure, at an early appropriate stage, to enable interested parties in other Members to become acquainted with it. The Committee recalls its decision that Members shall provide the names of the publications used to announce that work is proceeding on draft technical regulations or standards and procedures for assessment of conformity in their statements under article 15.2.

notifications and the Handling of Comments

19. The Committee notes that a number of the trade concerns raised at its meetings, in certain cases relate to a lack of transparency (including certain labelling requirements). Procedural problems include: failures to notify, short periods for comments, and inadequate handling of comments. Ways should be found to raise the awareness of regulatory authorities to the need for proper implementation of their transparency obligations.

9 g/TBT/9/annex 3.10 g/TBT/n/gen/1-33.

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20. The Committee believes that since notifications are a fundamental tool in the identification of measures with an impact on trade, improvements are needed in complying with notification obligations, in particular with respect to the timing of notifications, so that these are made early enough for other Members to comment on. insufficient comment periods prevent Members from exercising their right to submit comments, to hold consultations, and to have their comments taken into account. They can also be particularly problematic when drafts need to be requested and/or translated. The Committee has observed that, in certain instances, the deadlines for comments have gone beyond the date of the entry into force of regulations, which has reduced the utility of providing comments. Thus, the Committee reiterates the importance of Members fully observing their transparency obligations under the agreement, as well as the Committee’s recommendation as set out in Chapter iii, paragraph 6 of document g/TBT/1/rev.8 to provide 60 days for comments.

21. With respect to the notification forms themselves, the Committee stresses the importance of properly completing these forms, and clearly specifying the anticipated dates of adoption and entry into force of the notified measures and the final date for comments. The accuracy with which notifications are filled out can significantly reduce the time required by the Secretariat to process them. on average, the Secretariat currently takes five working days to review incoming notifications and to have them translated.

22. With respect to the handling of comments on notifications, the Committee reiterates the importance of complying with its previous recommendations as set out in Chapter iii, paragraph 7 of document g/TBT/1/rev.8. Moreover, the sharing, on a voluntary basis, of comments and responses could contribute significantly to other Members’ understanding of whether their comments have been taken into account, and could assist Members in benefiting from the technical knowledge and legal expertise of their trading partners. This could be particularly useful for developing country Members. in the preparation of comments and subsequent responses, the Committee stresses the importance of domestic coordination between the various interested parties.

23. The Committee reiterates the importance of Members fulfilling their notification obligations at the sub-national level under articles 3.2 and 7.2. Members should make greater efforts to raise awareness of these obligations at this level and to ensure their implementation. This could be done, for example, by holding seminars for local government bodies.

Timing of the entry into Force of Measures

24. The Committee also notes that access to final texts of technical regulations and conformity assessment procedures, as required by articles 2.11 and 5.8, is useful to Members. With respect to the entry into force of measures, the Committee reiterates the importance of following the Committee’s decision in Chapter X of g/TBT/1/

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259

rev.8, which states that a period of not less than six months between the publication of technical regulations and their entry into force should normally be allowed. This can enable exporters, particularly those from developing country Members, to adapt their products and methods of production to import requirements.

The Code of good Practice

25. With regard to the Code of good Practice for the Preparation, adoption and application of Standards, the Committee notes that in some cases (for instance with respect to voluntary labelling requirements), standards are developed by bodies that are not commonly considered as standardizing bodies and which have not accepted the Code. The Committee calls on Members to draw the attention of these bodies to the Code, and to encourage them to follow its provisions.

reCoMMendaTionS

26. With regard to the handling of comments, the Committee agrees to:

- recognize that, to improve the ability of developing country Members to comment on notifications, and consistent with the principle of special and differential treatment, developed country Members are encouraged to provide more than a 60-day comment period;

- invite Members to formulate their requests to enquiry points, on comment periods or on any other matter, in one of the three official languages of the WTo;

- encourage Members to voluntarily respond to comments in writing if so requested, and to share their responses with the TBT Committee. Members are also encouraged to draft their responses in one of the three official languages of the WTo;

- invite Members, on a voluntary basis, to disseminate their comments and responses by means of national websites and to draw the Committee’s attention to these;

- encourage Members under article 10.5, to provide translations of the documents covered by specific notifications, in any WTo official language of their choosing without being requested to do so; and to

- request Members to transmit their notifications to the Secretariat electronically via the Central registry of notifications (Crn) at <[email protected]> in order to accelerate their processing.

27. With regard to the electronic transmission of information on proposed standards, technical regulations and conformity assessment procedures, the Committee:

- agrees to examine the feasibility of creating a central depository for

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notifications on the WTo website, which would enable Members to complete notification forms on line. This would complement, not replace, the submission of notifications to the Crn; and

- takes note of Paragraph l of the Code of good Practice which states that: “no later than at the start of the comment period, the standardizing body shall publish a notice announcing the period for commenting in the publication referred to in paragraph J,” and agrees that the electronic publication of notices announcing the periods for comments can constitute another possibility for the fulfilment of this transparency obligation.

28. in order to facilitate the follow-up on Members’ technical regulations and conformity assessment procedures brought to the attention of the Committee, the Committee agrees to:

- Have amendments to notifications carry the same document symbol as that of the original notification to allow them to be adequately traced; and

- encourage Members to share, on a voluntary basis, with the Committee any follow-up information on issues that have been previously brought to its attention.

d. ConForMiTY aSSeSSMenT ProCedUreS

29. at the Second Triennial review, the Committee identified an indicative list of different approaches to facilitate the acceptance of conformity assessment results (namely, mutual recognition agreements for assessment of conformity to specific regulations; co-operative arrangements between domestic and foreign conformity assessment bodies in the voluntary sector; the use of accreditation to qualify conformity assessment bodies; government designation; unilateral recognition of results of foreign conformity assessment; and manufacturer’s/supplier’s declarations). it agreed to further discuss these approaches with a view to analyzing them in the light of articles 5 and 6. in the follow-up to the Second Triennial review, fifteen submissions have been received from nine Members, providing information on the various approaches to facilitate acceptance of results of conformity assessment.

implementation of the relevant Provisions of the agreement

30. The Committee emphasizes the importance of complying with the agreement’s provisions on conformity assessment (articles 5-9). These include article 5 (ProceduresforAssessmentofConformitybyCentralGovernmentBodies), which sets out the obligations concerning non-discrimination, unnecessary obstacles to trade, the use of international guides or recommendations and transparency. The Committee notes the importance of article 5.1.2 which emphasizes that conformity assessment procedures shall not be applied more strictly than is necessary to give importing Members adequate confidence that products conform with the applicable product requirements, taking account of the risks that non-conformity would create.

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Moreover, the Committee notes the importance of improving the implementation of article 5.2.

31. The Committee also stresses the importance of Members using relevant international guides or recommendations (article 5.4), and of Members playing a full part, within the limits of their resources, in the preparation by appropriate international standardizing bodies of guides and recommendations for conformity assessment procedures (article 5.5). Moreover the Committee notes the increasing development of international standards for conformity assessment procedures.

32. With regard to the acceptance of results of conformity assessment, the Committee reiterates the importance of paragraph 1 of article 6 (Recognition ofConformityAssessment by Central Government Bodies), which calls on Members to accept unilaterally the results of the conformity assessment procedures in other Members whenever possible. The effective application of article 6.1 would contribute to reducing unnecessary barriers to trade associated with duplicative testing and certification. The Committee also encourages Members to permit the participation of conformity assessment bodies located in the territory of other Members in their conformity assessment procedures, on a non-discriminatory basis, as stated in article 6.4. This could contribute to providing a wider choice of competent conformity assessment bodies for suppliers and regulators.

Suppliers declaration of Conformity (SdoC)

33. an initial exchange of views in the Committee took place on the use of SdoC, which is a procedure by which a supplier provides assurance of conformity to the specified requirements. The Committee recognizes the benefits of this approach for the assurance of conformity when used in appropriate circumstances. in many cases, SdoC may allow for flexibility and could reduce the cost of conformity assessment. Thus, it could be a means of facilitating trade without prejudice to the fulfilment of legitimate public policy objectives.

34. The Committee notes that the use of relevant international standards, guides or recommendations can provide transparency to the SdoC process, and can support its value and usability. in particular, exporters in developing country Members can improve market access when importing Members accept SdoC. in addition, the use of test/inspection reports or certification results from third parties or in-house laboratories, accredited on the basis of relevant international standards, guides or recommendations, could also facilitate the reliance on SdoC.

35. in order to be effective, SdoC should be combined with: effective product liability laws; well-developed market surveillance systems with appropriate resources and enforcement powers; penalties for false/misleading declarations; appropriate incentives to encourage producers/suppliers compliance; and consumer redress. in addition, in the use of SdoC consideration should be given to the particular characteristics of the sectors and the products involved.

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36. in using SdoC, the Committee stresses the importance of Members complying with their transparency obligations so that suppliers are informed of when such conformity assessment procedures are proposed.

accreditation

37. With respect to the acceptance of conformity assessment results, the Committee notes that article 6.1.1 identifies accreditation as a possible tool for Members to verify the technical competence of conformity assessment bodies in exporting country Members. When operated according to relevant international standards, guides and recommendations, accreditation offers a mechanism which could promote confidence. This could reduce trade barriers when governmental regulatory authorities accept the results of accredited bodies. The Committee notes the importance of Members ensuring that accreditation bodies follow the relevant provisions of the agreement, including those on transparency and openness.

Mutual recognition agreements for the acceptance of Conformity assessment results (Mras)

38. The Committee notes that, under article 6.3 “Members are encouraged, at the request of other Members, to be willing to enter into negotiations for the conclusion of agreements for the mutual recognition of results of each other’s conformity assessment procedures.” Mutual recognition agreements (Mras) are one of the approaches foreseen to facilitate the acceptance of conformity assessment results. The Committee notes, as indicated under article 6, that appropriate confidence building measures, including accreditation, could facilitate the acceptance of conformity assessment results without entering into Mras.

39. The Committee notes that Mras can be negotiated between governments with respect to specific regulations, or can be voluntary arrangements between domestic and foreign conformity assessment bodies. The Committee notes that while Mras can be a useful approach to facilitate acceptance of conformity assessment results, there may be difficulties faced in their negotiation and implementation. There are various considerations for the conclusion of effective Mras between governments, such as: a sound regulatory infrastructure, and a sufficient volume of trade in specific sectors between the parties involved to justify the high administrative costs and the generally long-term nature of the negotiations. The following factors may also need to be taken into consideration in the establishment of Mras: tangible economic benefits; interest of stakeholders; support from key players; underlying compatibility in the regulatory systems of the potential Mra parties; and sufficient resources for Mra negotiation and implementation. Moreover, a step-by-step approach may be useful to conclude an Mra, in particular, where the technical competence of the two parties is not equivalent. in this respect, progress could be made by means of technical cooperation to obtain mutual benefits.

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reCoMMendaTionS

Work Programme

40. With a view to improving Members’ implementation of articles 5-9 of the agreement and promoting a better understanding of Members’ conformity assessment systems, the Committee agrees to the following work programme to:

- exchange information and experiences on existing conformity assessment procedures and practices, the use of relevant international standards, guides and recommendations, and the participation of Members in national, regional and international accreditation schemes;

- exchange information and experiences and hold a workshop on SdoC covering issues such as: the regulatory authorities, sectors and suppliers which use SdoC; the surveillance mechanism, liability law and penalties used to ensure that products comply with requirements; the incentives for suppliers to comply with requirements; and the legislation that underpins the relationship between buyers and sellers;

- invite representatives from relevant international and regional accreditation fora to provide information on their operation and the participation of Members, in particular, developing country Members, in their systems. Moreover, users, such as certification bodies, should also be invited to share their experiences in this respect; and to

- hold a workshop on the different approaches to conformity assessment, including on the acceptance of conformity assessment results.

41. The Committee will take stock of the progress made on this Work Programme and reflect it in its annual report to the Council for Trade in goods.

e. TeCHniCal aSSiSTanCe and SPeCial and diFFerenTial TreaTMenT

42. The Committee emphasizes the importance of effective technical assistance as a means of improving the implementation of the TBT agreement. This is considered an area of priority work. Trade-related technical assistance could assist developing and least-developed country Members to participate more fully in, and benefit from, the global trading system. in this respect, the Committee stresses the importance of the implementation of article 11 of the agreement.

43. at the Second Triennial review, the Committee agreed to develop a demand-driven technical cooperation programme related to the TBT agreement. The programme would need to evolve on the basis of a number of elements, including a survey on needs identification and prioritization by developing country Members; consideration of existing technical assistance activities by multilateral, regional and bilateral organizations; enhancement of cooperation between donors; and identification

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of technical assistance partners and financial considerations. The progress made in implementing the TBT-related technical cooperation programme would be assessed in the context of the Third Triennial review. To assist the development of the programme, Members were invited to further communicate information on technical assistance programmes they had proposed, provided or received. The Committee agreed to invite observers to provide regular updates on their technical assistance activities, including the ways in which they sought to ensure the effective participation of Members, and particularly of developing country Members, in their activities.

44. Since the Second Triennial review, a number of actions were taken for the development of the TBT-related technical cooperation programme. approximately 100 submissions related to technical assistance were received from Members. These include: 53 submissions received from Members in response to the “Questionnaire for a Survey to assist developing Country Members to identify and Prioritise their Specific needs in the TBT Field”11; updates provided by observers12 on their technical assistance activities; and a report of the director-general on his actions to increase the participation of developing country Members in the work of relevant international standard setting organizations.13 Furthermore, the Chairs of the Committee on Trade and development (CTd) and the general Council were consulted to ensure coordination and avoid duplication of work in WTo TBT-related technical assistance. Pursuant to a decision to strengthen coordination and cooperation between the Committee and other relevant WTo bodies to effectively and efficiently address the issue of trade-related technical assistance in the context of the agreement (g/TBT/9), the WTo Technical Cooperation division provided the Committee with information on WTo technical cooperation and capacity building activities. The Committee takes note of existing databases providing information on TBT-related technical assistance.14

45. With the objectives of further developing the technical cooperation programme and providing an opportunity for further information exchange on technical assistance, on both the demand and supply sides, a special workshop on TBT-related technical assistance was held on 18 March 2003.15

Technical assistance needs

46. With respect to the responses to the questionnaire, the Secretariat has

11 g/TBT/W/178.12 The aladi, Fao/WHo Codex alimentarius Commission, ieC, iSo, iTC, oie, oiMl, Un/eCe,

Unido, WHo and the World Bank.13 g/TBT/W/172.14 The Secretariat prepared an overview paper on existing databases providing information on TBT-relat-

ed technical assistance (g/TBT/W/207).15 a Summary report by the Chairperson on that Workshop is contained in annex a of g/TBT/M/29.

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compiled16 and analyzed17 the responses received, which reflect the current situation, specific difficulties, as well as the prioritized technical assistance and capacity building needs identified by developing country Members in relation to the implementation of and benefiting from the agreement. Based on the analysis of the responses to the questionnaire, the Committee notes that TBT-related technical assistance needs fall in a wide range of areas due to the dynamic and sophisticated nature of technical regulations, standards, conformity assessment procedures and transparency procedures. These include: the need for improved knowledge of the agreement; effective implementation of the agreement; exchange of experience among Members and bilateral cooperation; national and regional coordination; training for development of human resources; improvement of infrastructure and capacity building; participation in the work of the Committee and other relevant regional and international organizations (including those in the international standardization process and international conformity assessment arrangements); and needs in relation to market access.

47. The Committee recognizes that improving implementation of the agreement, including the provisions relating to transparency, is an important element of TBT-related technical assistance. it further recognizes the importance of technical assistance related to good regulatory practice given the difficulties faced by developing country Members in developing relevant mechanisms and systems. Factors affecting the ability of developing country Members to implement the TBT agreement include the lack of awareness of the agreement, the lack of capacity (particularly in terms of human resources), as well as the lack of legislation and technical infrastructure. Technical assistance and capacity building activities should be provided accordingly.

48. The Committee also notes that developing country Members may encounter certain constraints in the use of SdoC for their exports. Technical assistance may be required in this respect. Furthermore, technical assistance may also be required for those Members who wish to introduce SdoC for ensuring conformity to their technical regulations in particular sectors. in addition, the Committee notes that technical assistance is needed to enhance the participation of relevant bodies from developing country Members in international and regional accreditation systems, and recognizes the efforts being made by international accreditation organizations in this regard.

49. The Committee notes the importance for Members to identify and prioritize their needs, since not every request can be addressed, and not every Member will require the same type of assistance. development of human resources and technical capacity takes time, varies between Members, and may evolve with levels of development. For this reason, technical assistance should be tailored to specific needs.

16 g/TBT/W/186 and add.1.17 g/TBT/W/193.

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Coordination and coherence among national authorities, as well as with donors, is most important in terms of ensuring that the determination of needs and priorities, and requests for assistance, are made in a coordinated fashion, using an effective approach while avoiding duplication. The Committee notes that care should be taken to balance the various TBT-related assistance activities so that recipient country Members could effectively develop their overall infrastructure.

approaches to Technical assistance

50. The Committee emphasizes the importance of effective technical assistance activities. There are a number of good practices to enhance the effectiveness and efficiency of technical assistance. These include the following: technical assistance activities should follow a step-by-step approach, focusing firstly on the provision of knowledge and skills and secondly on the development of TBT-related infrastructure. a structured and sequenced approach could increase effectiveness, and better meet the needs identified by developing country Members. in each technical assistance activity, the selection and preparation of participants is critical to ensure proper application and dissemination of the knowledge gained. regulators and the private sector may be recipients of training activities. There is a need for the increase of sustainability and dissemination of the acquired knowledge through the strengthening of institutions and the use of internal measures to complement technical assistance. There are also needs for the monitoring, assessment and following-up of technical assistance activities.

51. The Committee notes that awareness raising with regard to the use and benefit of the agreement with domestic stakeholders is an important aspect of technical assistance. efforts to increase awareness of the agreement are usefully applied in all areas of government, as well as among industry stakeholders and policy-makers. a lack of awareness not only impedes the development of national measures in a manner that adheres to the obligations under the agreement; it also affects the provision of comments in response to notifications of other Members, and the effective participation of Members in activities in the Committee and other relevant regional and international organizations.

52. The Committee notes that modalities for the provision of technical assistance under article 11 of the TBT agreement could be, but are not limited to, training and human resources development (including via seminars and workshops), technical consultation and “on the job” training. on the other hand, south-south technical cooperation and regional approaches for technical assistance can be effective, and facilitate sharing of experiences among Members with similar situations.

reCoMMendaTionS

53. in light of the work programme on TBT-related technical assistance since the Second Triennial review and in order to assist Members in implementing and

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operationalizing article 11, the Committee agrees to the recommendations in paragraphs 54-56.

54. The Committee notes the importance of transparency in the provision of technical assistance and the need for coordination at the national, regional and international levels. recognizing that improvements are needed to facilitate the meeting of demand and supply of technical assistance, and with a view to building on the information received, the Committee agrees:

- To consider the creation of an information coordination mechanism including through the possible development of voluntary notification procedures for donors, and recipient Members to communicate information on current and future activities. To this end, and considering proposals made by Members18, the Chair is requested to hold consultations with interested Members to:

- examine what extent an internet facility could serve this purpose;

- examine what an appropriate management approach might be; and

- report to the Committee by mid-2004;

- that the survey questionnaire could be a dynamic tool to maintain information on developing country Members’ needs and encourages Members, on a voluntary basis, to update responses to the survey questionnaire; and

- to invite Members to communicate to the Committee pertinent information regarding technical assistance activities of relevant regional and international bodies.

55. With regard to technical assistance provided by the Secretariat, the Committee agrees to:

- explore how the results of the Committee’s discussions (e.g., on needs identified, lessons learned, gaps in technical assistance activities) could be reflected in the WTo’s Technical assistance and Training Plan; and

- request the Secretariat, as part of the Committee’s standing agenda item on technical assistance, to regularly deliver information on its recently concluded programmes and future plans on TBT-related technical assistance, and reflect this in the Committee’s annual reviews.19 This should include information on modality, content, participation and any feedback from recipient Members.

18 in particular: g/TBT/W/212, 216, 225, 232 and 233.19 it is noted that the Secretariat is developing a WTo Website on TBT-related technical assistance.

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56. With regard to the appropriate role of the Committee in relation to technical assistance, the Committee:

- agrees on the need for Members and the Secretariat to raise the profile of TBT issues at the international and national levels20;

- reaffirms the need for its future work to contribute to enhanced cooperation and coordination between those involved in technical assistance;

- reaffirms the need to continue facilitating the exchange of national experiences;

- should provide a forum for feedback and assessment of the outcomes and effectiveness of technical assistance; and

- considers, based on Members’ experience of technical assistance received and provided, developing further elements of good practice in technical assistance in the TBT field.

57. The Committee is aware of its own constraints and those of the Secretariat in terms of providing technical assistance. neither the Committee nor the Secretariat has the capacity to build infrastructure and institutions. These needs could be filled by governments and other relevant regional and international organizations.

F. oTHer eleMenTS

58. at the Second Triennial review, the Committee noted that concerns regarding labelling were raised frequently in the Committee meetings during discussions on the implementation and operation of the agreement. Since then, the issue of labelling has continued to be discussed in that context. The Committee notes that in these discussions trade impediment concerns related to labelling have been brought to its attention.

59. Compilations of notifications made from 1 January 1995 to 31 august 2002, and of specific trade concerns brought to the attention of the Committee by Members since 1995 related to labelling requirements, can be found in documents g/TBT/W/183, g/TBT/W/184 and Corr.1.

60. The Committee agrees to continue to consider labelling concerns in its discussions in the context of the implementation and operation of the agreement.

61. on the issue of terms and definitions, the Committee agrees that the iSo/ieC could be invited to provide information to the Committee on the revised iSo/ieC guide 2: 1991, with a view to examining whether and how far this revised document departs from iSo/ieC guide 2: 1991.

20 it is noted that the Secretariat will prepare a booklet and a Cd-roM on the TBT agreement.

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anneX 1

liST oF doCUMenTS relaTed To THe THird Triennial reVieW

g/TBT/W/156 Technical assistance and Technical Cooperation Programme

(Submission from Brazil) g/TBT/W/160 Japan’s experience on Technical assistance in the area

of TBT (Submission from Japan) g/TBT/W/162 Marking and labelling requirements (Submission from Switzerland)g/TBT/W/163 Technical assistance and Capacity Building in the Field

of Technical Barriers to Trade (Submission from the european Communities) g/TBT/W/164 Technical assistance and Technical Cooperation

Programme (Submission from indonesia)g/TBT/W/165 labelling (Submission from the United States)g/TBT/W/166 Philippines experience in the implementation of the

TBT agreement (Submission by The Philippines)g/TBT/W/167 a Policy Framework for Mutual recognition activities (Submission from Canada)g/TBT/W/172 action to increase Participation of developing County

Members in the Work of relevant international Standard Setting organizations - information from international organizations

(report of the director-general) g/TBT/W/173 a Policy Framework for the Facilitation of Trade and add.1 and in the Fields of Standardization and Conformity

assessment: a Toolbox of instruments (Submission from the european Communities)g/TBT/W/174/rev.1 labelling and requirements of the agreement of on

Technical Barriers to Trade (TBT): Framework for informal, Structured discussions

(Submission from Canada)g/TBT/W/175 labelling (Submission from the european Communities)g/TBT/W/176 labelling (Submission from Japan)

270 WTo BiSd 2003


g/TBT/W/178 Questionnaire for a Survey to assist developing Country Members to identify and Prioritize their Specific needs in the TBT-Field

(note by the Secretariat)g/TBT/W/183 notifications related to labelling (1 January 1995 – 31

august 2002) (note by the Secretariat) g/TBT/W/184 Specific Trade Concerns related to labelling Brought toand Corr. 1 the attention of the Committee since 1995 (note by the Secretariat)g/TBT/W/186 a Compilation and Summary of the responses received and add.1 to the Questionnaire for a Survey to assist developing

Country Members to identify and Prioritize their Specific needs in the TBT-Field”

(note by the Secretariat)g/TBT/W/188 Technical assistance activities in the TBT Field - european Commission and eU Member State Funded (Submission from the european Communities)g/TBT/W/189 TBT Technical Cooperation Programme (Submission from Mexico)g/TBT/W/193 an analysis of the Priorities identified by developing

Country Members in their responses to the Questionnaire for a “Survey to assist developing Country Members to identify and Prioritize their Specific needs in the TBT-Field

(note by the Secretariat)g/TBT/W/194 a Policy Framework for the acceptance of results of

Conformity assessment Procedures (Submission By Japan)g/TBT/W195 implementation of Supplier’s declaration of Conformity (Submission by The Separate Customs Territory of

Taiwan, Penghu, Kinmen and Matsu)g/TBT/W/196 Main objectives for the Third Triennial review of

the Technical Barriers to Trade agreement - general Concept Paper

(Submission by Canada)g/TBT/W/197 Third Triennial review of the TBT agreement (Submission by the european Communities)g/TBT/W/198 TBT-related Technical assistance and Capacity Building (Submission from australia)g/TBT/W/199 Korea’s experience in the implementation of the WTo/

TBT agreement (Submission by Korea)

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g/TBT/W/200 Korea’s experience on Technical assistance in the area of the TBT

(Submission by Korea)g/TBT/W/201 Technical assistance activities in the TBT Field: Japan

(as of 11 March 2003) (Submission by Japan)g/TBT/W/202 Canadian Technical assistance and Cooperation

activities in the TBT Field (Submission from Canada)g/TBT/W/203 Technical assistance and Capacity Building in the TBT

Field (Submission by new zealand)g/TBT/W/205 Third Triennial review of the TBT agreement (Submission by the People’s republic of China)g/TBT/W/207 overview of the existing databases on TBT-related

Technical assistance (note by the Secretariat)g/TBT/W/209 Third Triennial review of the agreement on Technical

Barriers to Trade (Communication from Mexico)g/TBT/W/210 Canada’s approach to Voluntary Conformity assessment (Submission by Canada)g/TBT/W/211 Third Triennial review of the TBT agreement (Submission by new zealand)g/TBT/W/212 Follow up to the Workshop on TBT related Technical

assistance (Communication from new zealand)g/TBT/W/213 Contribution to the Third Triennial review of the

agreement on Technical Barriers to Trade. labelling (Communication from Chile)g/TBT/W/214 Third Triennial review of the TBT agreement

notification Procedures related to amended regulations Previously notified to the WTo – Proposal

(Submission from Brazil)g/TBT/W/215 Third Triennial review of the TBT agreement (Submission from Brazil)g/TBT/W/216 Follow up to the Workshop on TBT related Technical

assistance Proposal from new zealand for an information Coordination Mechanism

(Submission by new zealand)g/TBT/W/217 Conformity assessment: a Framework to improve the

application of the TBT agreement (Submission by the european Communities)

272 WTo BiSd 2003


g/TBT/W/218 Supplier’s declaration of Conformity (Submission by the european Communities)g/TBT/W/219 recent european Commission developments in the

Field of Better regulation (Submission by the european Communities)g/TBT/W/220 Third Triennial review of the TBT agreement (Submission by the United States)g/TBT/W/221 overview of Technical Cooperation activities regarding

Metrology, Standardization and Conformity assessment – received and Tendered by Brazil (1995-2003)

(Submission from Brazil)g/TBT/W/222 Third Triennial review of the TBT agreement (Submission by Japan)g/TBT/W/223 The introduction of discussions on good regulatory

Practice in aPeC (Submission by Japan)g/TBT/W/224 Third Triennial review: Conformity assessment and

Transparency (Submission from egypt)g/TBT/W/225 Follow-up of the Workshop on Technical assistance:

outlines for a database and Task Force to enhance delivery of Technical assistance activities

(Submission by egypt)g/TBT/W/228 european Community TBT related Technical assistance

to developing Countries (Submission from the european Communities)g/TBT/W/230 The Third Triennial review of the TBT agreement and Corr.1 (Submission by Thailand)g/TBT/W/232 Technical Cooperation and assistance Programme

Management Model (Submission from Brazil)g/TBT/W/233 The Third Triennial review of the TBT agreement

Proposed outcome on Technical assistance (Joint Proposal by Canada and new zealand)g/TBT/W/234 enhancing Transparency for new or Changed

regulations/Ca Procedures which arise as a result of implementation of a recommendation of the dSB

(Submission by Canada)JoB(01)128 and 128/add.1-2 - Technical assistance – Compilation of Submissions

from Members Since the Beginning of Year 2001 (Submissions from Bolivia, Brazil (g/TBT/W/156),

Cuba, european Communities (g/TBT/W/163), egypt

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(g/TBT/M/23), Japan (g/TBT/W/160), indonesia (g/TBT/W/164), Mauritius, Mozambique, nigeria, oman, Panama (g/TBT/W/142), Peru, Philippines (g/TBT/W/166), Thailand, zimbabwe, Morocco, Barbados and egypt)

JoB(02)/99 and 99/add.1-52 – responses to the Questionnaire for a Survey to assist developing Country Members to identify and Prioritize their Specific needs in the TBT-Field (responses received from Brunei darussalam; argentina; Macao; China; Singapore; Peru; Brazil; indonesia; Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; Thailand; Madagascar; Chile; the Philippines; Paraguay; Colombia; Kyrgyz republic; Mexico; China; india; lebanon; oman; lesotho; Malawi; Kenya; Chad; Cuba; Venezuela; Honduras; Senegal; angola; zimbabwe; St. Vincent & the grenadines; Mauritius; Jordan; Korea; Malaysia; South africa; Mongolia; Bangladesh; St. lucia; ghana; Trinidad and Tobago; Uganda; egypt; Jamaica; guatemala; Uruguay; Turkey; Sri lanka; antigua and Barbuda; and Pakistan).

anneX 2

iMPleMenTaTion and adMiniSTraTion oF THe agreeMenT

(as of 7 november 2003)

Members enquiry Points (notified)

notifications under article 15.2

albania X

angola

antigua and Barbuda X g/TBT/2/add.66

argentina X g/TBT/2/add.21 and Suppl.3

armenia X g/TBT/2/add.75

australia X g/TBT/2/add.8/rev.1 and Suppl.1

austria X g/TBT/2/add.12/rev.2

274 WTo BiSd 2003




Bahrain X g/TBT/2/add.19

Bangladesh X

Barbados X g/TBT/2/add.48

Belgium X g/TBT/2/add.12/rev.2

Belize X

Benin X

Bolivia X g/TBT/2/add.43 and Suppl.1

Botswana X

Brazil X g/TBT/2/add.26/rev.2 and Suppl. 1

Brunei darussalam

Bulgaria X g/TBT/2/add.32/rev.2

Burkina Faso X

Burundi X

Cameroon X

Canada X g/TBT/2/add.6/rev.1

Central african (rep.)

Chad

Chile X g/TBT/2/add.16 and Suppl.1

China, People’s republic of X g/TBT/2/add.65

Colombia X g/TBT/2/add.18

Congo

Congo, democratic rep. of

Costa rica X g/TBT/2/add.51 and Suppl.1

WTo BiSd 2003


275



Côte d’ivoire X

Croatia X g/TBT/2/add.73

Cuba X g/TBT/2/add.13

Cyprus X g/TBT/2/add.46

Czech republic X g/TBT/2 and Suppl.1

denmark X g/TBT/2/add.12/rev.2

djibouti X

dominica X g/TBT/2/add.62

dominican republic X g/TBT/2/add.74

ecuador X

egypt X g/TBT/2/add.34

el Salvador X

estonia X g/TBT/2/add.58 and rev. 2

european Communities X g/TBT/2/add.12/rev.2

Fiji X

Finland X g/TBT/2/add.12/rev.2

Former Yugoslav republic of Macedonia (FYroM)

France X g/TBT/2/add.12/rev.2

gabon

gambia

georgia X

germany X g/TBT/2/add.12/rev.2

ghana X g/TBT/2/add.76

276 WTo BiSd 2003




greece X g/TBT/2/add.12/rev.2

grenada X g/TBT/2/add.67

guatemala X

guinea, rep. of X

guinea Bissau

guyana

Haiti

Honduras X g/TBT/2/add.50

Hong Kong, China X g/TBT/2/add.1

Hungary X g/TBT/2/add.41

iceland X g/TBT/2/add.55 and Suppl.1

india X g/TBT/2/add.56

indonesia X g/TBT/2/add.3

ireland X g/TBT/2/add.12/rev.2

israel X g/TBT/2/add.72

italy X g/TBT/2/add.12/rev.2

Jamaica X g/TBT/2/add.57

Japan X g/TBT/2/add.10

Jordan X g/TBT/2/add.61

Kenya X

Korea X g/TBT/2/add.28

Kuwait

Kyrgyz republic X g/TBT/2/add.59

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277



latvia X g/TBT/2/add.52

lesotho X

liechtenstein X g/TBT/2/add.36

lithuania X g/TBT/2/add.64

luxembourg X g/TBT/2/add.12/rev.2

Macau, China X g/TBT/2/add.30

Madagascar

Malawi X

Malaysia X g/TBT/2/add.9

Maldives

Mali X

Malta X

Mauritania

Mauritius X g/TBT/2/add.40

Mexico X g/TBT/2/add.14

Moldova X g/TBT/2/add.68

Mongolia X g/TBT/2/add.44

Morocco X g/TBT/2/add.39

Mozambique X

Myanmar X

namibia X g/TBT/2/add.42

netherlands X g/TBT/2/add.12/rev.2

new zealand X g/TBT/2/add.24

278 WTo BiSd 2003




nicaragua X

niger X

nigeria X g/TBT/2/add.20

norway X g/TBT/2/add.15/rev.1

oman X g/TBT/2/add.63

Pakistan X g/TBT/2/add.45

Panama X g/TBT/2/add.53 and Corr.1

Papua new guinea X

Paraguay

Peru X g/TBT/2/add.29

Philippines X g/TBT/2/add.11

Poland X g/TBT/2/add.31/rev.1

Portugal X g/TBT/2/add.12/rev.2

Qatar

romania X g/TBT/2/add.17 and Corr.1

rwanda

Saint Kitts and nevis

Saint lucia X g/TBT/2/add.37

Saint Vincent & grenadines X g/TBT/2/add.71

Senegal

Sierra leone

Singapore X g/TBT/2/add.25

Slovak republic X g/TBT/2/add.4

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279



Slovenia X g/TBT/2/add.5 and Suppl.2

Solomon islands

South africa X g/TBT/2/add.60

Spain X g/TBT/2/add.12/rev.2

Sri lanka X g/TBT/2/add.27

Suriname

Swaziland X g/TBT/2/add.35

Sweden X g/TBT/2/add.12/rev.2

Switzerland X g/TBT/2/add.7

The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu

X g/TBT/2/add.69

Tanzania X

Thailand X g/TBT/2/add.38

Togo

Trinidad and Tobago X g/TBT/2/add.47

Tunisia X g/TBT/2/add.22

Turkey X g/TBT/2/add.33

Uganda X g/TBT/2/add.23

United arab emirates X

United Kingdom X g/TBT/2/add.12/rev.2

United States X g/TBT/2/add.2

Uruguay X g/TBT/2/add.54

Venezuela X g/TBT/2/add.70


WTo BiSd 2003280



zambia X

zimbabwe X g/TBT/2/add.49

ToTal: 146 121 92

WORkING PARTY ON STATE TRADING ENTERPRISES

reCoMMendaTion on THe FreQUenCY oF noTiFiCaTionS

AdoptedbytheWorkingPartyonStateTradingEnterpriseson11November2003andApprovedbytheCouncilforTradeinGoodson26November2003

(G/STR/5)

1. article XVii:4 of gaTT 1994, and paragraph 1 of the Understanding on the interpretation of article XVii of gaTT 1994 (the Understanding) require Members to notify their state trading enterprises to the Council for Trade in goods. gaTT ConTraCTing ParTieS adopted on 9 november 1962 a decision establishing the periodicity of state trading notifications.1 This decision provides that new and full notifications of state trading enterprises are to be submitted every three years, with updating notifications to be submitted in the intervening years. Following the entry into force of the Marrakesh agreement establishing the WTo and the adoption of the Understanding, the Council for Trade in goods decided to continue the periodicity of notifications set forth in the 1962 decision. in accordance with the Understanding, state trading notifications are reviewed by the Working Party on State Trading enterprises on behalf of the Council for Trade in goods.

2. during recent notification review exercises Members have observed that compliance with the notification obligation is less than satisfactory. in light of this unsatisfactory state of affairs the Working Party has held discussions in order to find a solution to the problem of compliance with the state trading notification obligation. a similar situation had been observed by Members in the context of subsidy notifications to the Committee on Subsidies and Countervailing Measures. in that instance, the Committee on Subsidies and Countervailing Measures focussed on the frequency of the notifications in its efforts to improve compliance. Members of the Working Party are of the view that a modification of the frequency of the state trading notification is

1 BiSd 11S/58..

Working Party on State Trading entreprises

WTo BiSd 2003 281

desirable in order to improve compliance with the notification obligation.

3. in light of the above considerations the Working Party recommends to the Council for Trade in goods that:

(a) Theperiodicityofstatetradingnotificationsbemodified.

(b) Thenewandfullnotificationsonstatetradingbedueeverytwoyearsinsteadofeverythreeyears.

(c) The requirement of updating notifications in the intervening years be eliminated.

(d) This change in the periodicity of the notifications enter into force as of the year 2004, with a full and new notification being due in that year.

(e) The guidelines for completing the questionnaire section of the Questionnaire on State Trading2 be amended to bring it into conformity with the new frequency for state trading notifications. accordingly, the text after the titles Sections i, ii and iii should be amended to read: “to be submitted in full every two years.” also, the text after the title Section iV should read: “to be submitted every two years on a calendar, fiscal or marketing year basis…”

4. after a trial period of four years, commencing on 30 June 2004, the Working Party shall review the situation, with regard to compliance with the notification obligation and the frequency of notifications, with a view to determining whether to extend the application of this recommendation, either as presently drafted or in a modified form for a further period.

COMMITTEE ON BUDGET, FINANCE AND ADMINISTRATION

AbstractoftheReportAdoptedbytheGeneralCouncilon15-16December2003(WT/BFA/70)

The director-general is authorized to make budgetary expenditures of the World Trade organization for 2004 (CHF 157,060,700), and for the appellate Body and its Secretariat for 2004 (CHF 4,715,800) amounting to a total of CHF 161,776,500.

This expenditure is to be financed by contributions amounting to CHF 160,560,000 and by miscellaneous income estimated at CHF 1,216,500.

2 g/STr/3.


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The contributions of the Members shall be assessed in accordance with the attached scale of contributions. Contributions from Members in respect of the 2004 budget are considered as due and payable in full as at 1 January 2004.

SCale oF ConTriBUTion For 2004

(Minimumcontributionof0.015%)

MeMBerS % CHF

albania 0.015 24,084

angola 0.080 128,448

antigua and Barbuda 0.015 24,084

argentina 0.462 741,787

armenia 0.015 24,084

australia 1.154 1,852,862

austria 1.376 2,209,306

Bahrain 0.073 117,209

Bangladesh 0.105 168,588

Barbados 0.019 30,506

Belgium 2.682 4,306,219

Belize 0.015 24,084

Benin 0.015 24,084

Bolivia 0.025 40,140

Botswana 0.035 56,196

Brazil 0.950 1,525,320

Brunei darussalam 0.041 65,830

Bulgaria 0.097 155,743

Burkina Faso 0.015 24,084

Burundi 0.015 24,084

Cameroon 0.026 41,746

Canada 3.940 6,326,064

Central african republic 0.015 24,084

Chad 0.015 24,084

Chile 0.311 499,342

China, People’s republic of 3.261 5,235,862

Colombia 0.219 351,626

Congo 0.024 38,534

Costa rica 0.101 162,166

Côte d’ivoire 0.063 101,153

Croatia 0.138 221,573

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Committee on Budget, Finance and administration



MeMBerS % CHF Cuba 0.064 102,758

Cyprus 0.061 97,942

Czech republic 0.510 818,856

democratic republic of the Congo 0.019 30,506

denmark 0.954 1,531,742

djibouti 0.015 24,084

dominica 0.015 24,084

dominican republic 0.125 200,700

ecuador 0.082 131,659

egypt 0.258 414,245

el Salvador 0.060 96,336

estonia 0.064 102,758

european Communities 0.000 0

Fiji 0.016 25,690

Finland 0.635 1,019,556

Former Yugosalve republic of Macedonia 0.025 40,140

France 5.212 8,368,387

gabon 0.035 56,196

gambia 0.015 24,084

georgia 0.015 24,084

germany 8.885 14,265,756

ghana 0.038 61,013

greece 0.409 656,690

grenada 0.015 24,084

guatemala 0.063 101,153

guinea 0.015 24,084

guinea-Bissau 0.015 24,084

guyana 0.015 24,084

Haiti 0.015 24,084

Honduras 0.038 61,013

Hong Kong, China 3.196 5,131,498

Hungary 0.427 685,591

iceland 0.043 69,041

india 0.799 1,282,874

indonesia 0.811 1,302,142

ireland 1.149 1,844,834


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MeMBerS % CHF israel 0.563 903,953

italy 4.156 6,672,874

Jamaica 0.055 88,308

Japan 6.394 10,266,206

Jordan 0.064 102,758

Kenya 0.045 72,252

Korea, republic of 2.415 3,877,524

Kuwait 0.196 314,698

Kyrgyz republic 0.015 24,084

latvia 0.050 80,280

lesotho 0.015 24,084

liechtenstein 0.025 40,140

lithuania 0.081 130,054

luxembourg 0.343 550,721

Macao, China 0.064 102,758

Madagascar 0.015 24,084

Malawi 0.015 24,084

Malaysia 1.302 2,090,491

Maldives 0.015 24,084

Mali 0.015 24,084

Malta 0.047 75,463

Mauritania 0.015 24,084

Mauritius 0.039 62,618

Mexico 2.231 3,582,094

Moldova 0.015 24,084

Mongolia 0.015 24,084

Morocco 0.155 248,868

Mozambique 0.015 24,084

Myanmar, Union of 0.033 52,985

namibia 0.027 43,351

netherlands, Kingdom of the 3.422 5,494,363

new zealand 0.250 401,400

nicaragua 0.019 30,506

niger 0.015 24,084

nigeria 0.191 306,670

norway 0.855 1,372,788

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MeMBerS % CHF oman 0.111 178,222

Pakistan 0.157 252,079

Panama 0.115 184,644

Papua new guinea 0.030 48,168

Paraguay 0.051 81,886

Peru 0.130 208,728

Philippines 0.562 902,347

Poland 0.701 1,125,526

Portugal 0.567 910,375

Qatar 0.070 112,392

romania 0.176 282,586

rwanda 0.015 24,084

Saint lucia 0.015 24,084

Senegal 0.022 35,323

Sierra leone 0.015 24,084

Singapore 2.022 3,246,523

Slovak republic 0.191 306,670

Slovenia 0.159 255,290

Solomon islands 0.015 24,084

South africa 0.488 783,533

Spain 2.411 3,871,102

Sri lanka 0.093 149,321

St. Kitts and nevis 0.015 24,084

St. Vincent and the grenadines 0.015 24,084

Suriname 0.015 24,084

Swaziland 0.016 25,690

Sweden 1.397 2,243,023

Switzerland 1.463 2,348,993

Chinese Taipei 2.000 3,211,200

Tanzania 0.024 38,534

Thailand 0.991 1,591,150

Togo 0.015 24,084

Trinidad and Tobago 0.040 64,224

Tunisia 0.129 207,122

Turkey 0.740 1,188,144

Uganda 0.017 27,295


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MeMBerS % CHF United arab emirates 0.523 839,729

United Kingdom of great Britain and northern ireland 5.689 9,134,258

United States of america 15.735 25,264,116

Uruguay 0.057 91,519

Venezuela 0.326 523,426

zambia 0.016 25,690

zimbabwe 0.044 70,646

ToTal 100.000 160,560,000

COMMITTEE ON TRADE AND ENVIRONMENT

rePorT To THe 5TH SeSSion oF THe WTo MiniSTerial ConFerenCe in CanCún

Paragraphs 32 and 33 of the doha Ministerial declaration

AdoptedbytheCommitteeonTradeandEnvironmenton7July2003(WT/CTE/8)

i. inTrodUCTion

1. The following report covers the work undertaken by the regular session of the Committee on Trade and environment (“the CTe “) between the Fourth (doha) and the Fifth (Cancún) Ministerial Conferences of the WTo.1 each issue is sub-divided into “(a) Papers” and “(b) discussion”. The first lists the papers submitted under each item. The second, “discussion”, is a factual summary of those issues that have been discussed and that are covered by the reporting requirement in paragraphs 32 and 33 of the doha Ministerial declaration (“dMd”).2

ii. ParagraPH 32

2. as a recommendationfortheCancúnMinisterialConference, one Member proposed that Members review the CTe’s Work Programme (annex 2) with a view to determine whether it continued to meet the requirements of Members. The CTe

1 The full detail of the discussions is reflected in the reports of the five meetings held during this period (WT/CTe/M/29-34).

2 The relevant provisions of the dMd are reproduced in annex 1, on page 249. Unless otherwise stated, paragraph numbers refer to those of the dMd.

Committtee on Trade and environment

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could then report to the next Session of the Ministerial Conference with a proposal for amended Terms of reference.3

a. ParagraPH 32(i) (MarKeT aCCeSS)

Theeffectofenvironmentalmeasuresonmarketaccess,especiallyinrelationtodevelopingcountries,inparticulartheleastdevelopedamongthem,andthosesituationsinwhichtheeliminationorreductionoftraderestrictionsanddistortionswouldbenefittrade,theenvironmentanddevelopment.

3. The CTe discussed the two aspects of paragraph 32(i) separately:

(a) The effect of environmental measures on market access, especially in relation to developing countries, in particular the least developed among them (referred to as the “market access aspect”); and,

(b) those situations in which the elimination or reduction of trade restrictions and distortions would benefit trade, the environment and development (referred to as the “sector analysis”).

1. The Market access aspect

(a) Papers

Members Title date and Symbolindia The effects of environmental Measures

on Market access, especially in relation to developing Countries, in particular the least-developed among them, Submission from india on paragraph 32(i) of the doha Ministerial declaration.

WT/CTe/W/207,21 May 2002

observersUnCTad expert Meeting on environmental

requirements and international Trade (geneva, 2-4 october 2002)

WT/CTe/gen/2, 20 november 2002

oeCd global Forum on Trade: The development dimensions of Trade and environment (new delhi, india, 27-28 november 2002)

WT/CTe/gen/3,20 november 2002

(b) discussion

4. it was generally recognized that improved market access for developing countries’ products was key to the goal of achieving sustainable development. it was recalled that, in line with rio Principle 11,4 environmental standards, objectives

3 Canada in Job(03)/105. 4 rio Principle 11 reads as follows: «States shall enact effective environmental legislation. environmen-

tal standards, management objectives and priorities should reflect the environmental and developmental context to which they apply. Standards applied by some countries may be inappropriate and of unwar-ranted economic and social cost to other countries, in particular developing countries.»


WTo BiSd 2003288

and priorities needed to reflect the particular environmental and developmental context to which they applied and that standards applied by some countries could be inappropriate and of unwarranted economic and social cost to others, particularly developing countries. Small and medium sized enterprises (SMes) were especially vulnerable in this regard.

5. Several Members stressed that the protection of the environment and health were legitimatepolicyobjectives and that Members had the right to set their own appropriate level of environmental protection so as to address such objectives. However, it was also acknowledged that environmental requirements could affect exports adversely. The answer to concerns about reduced market access was not to weaken such standards, but rather to enable exporters to meet them. Several Members stressed that there was sufficient scope in existing WTo agreements to ensure that environmental measures did not unduly restrict exports; the rules of the agreement on the application of Sanitary and Phytosanitary Measures (“SPS agreement”) and the agreement on Technical Barriers to Trade (“TBT agreement”) were referred to in particular.

6. in striking the appropriate balance between safeguarding market access and protecting the environment, it was felt that there was a need to examine howenvironmental measures could be designed by importing countries in a manner that (i) was consistent with WTo rules; (ii) was inclusive; (iii) took into account capabilities of developing countries; and, (iv) met the legitimate objectives of the importing country.

7. Several Members stressed the importance of involving developing countries in the designanddevelopmentof environmental measures as a way of mitigating negative trade effects. Similarly, the facilitation of effective participation of developing countries in the early stages of the international standard-setting process was important. once developed, flexibility in the application of environmental measures was seen as key and several Members mentioned longer time-frames as an example of this; the inclusion of exceptions was also raised. Several Members emphasized the principles of equivalence and mutual recognition in this regard and one Member proposed that the CTe could look at guidelines for the application of environmental requirements as a means of efficient and operational provision of special and differential treatment. Most Members considered that technical assistance and capacity building were key to help developing countries’ exporters to meet environmental requirements. Technology transfer was also mentioned.5

8. Information dissemination on new environmental requirements was essential. one Member pointed out that, in the context of the World Summit on Sustainable development (WSSd), the creation of “Sustainable Trade and innovation

5 For more detail on technical assistance, see Section iii and paragraph 51 in particular.


WTo BiSd 2003 289

Centers” to address this very need had been proposed. others stressed that enforcing current disciplines on notification requirements more rigorously could give concerned Members an early opportunity to review upcoming environmental requirements and to adjust production methods, as appropriate.

9. in discussing ways forward, several Members felt that more weight had to be given to the identification of trade opportunities for sustainable growth. The CTe could look at incentives and means to assist developing countries to identify products, and develop export markets for environmentally friendly products in areas where these countries enjoyed a comparative advantage. This would reinforce the message contained in the CTe’s 1996 report (Singapore)6 that trade liberalization had the potential to generate resources that could be applied to implement sound environmental policies. Moreover, one of the outcomes of the WSSd had reiterated the need to support voluntary, WTo compatible market-based initiatives for the creation and expansion of domestic and international markets for environmentally friendly goods.7

10. Several Members agreed on the need for moreanalysis, and the identification of concrete cases regarding the effects of environmental measures on market access, particularly on exports of products of importance to developing countries. Such analysis, particularly if sector-specific and based on real situations, could further the understanding of the issues and could serve to target positive measures. in this regard, several Members referred to relevant work undertaken by the oeCd8 and UnCTad.9

6 WT/CTe/1, 12 november 1996, paragraph 197, in particular.7 WSSd Plan of implementation, paragraph 99(b).8 in particular: the oeCd «case studies» contained in the publication «The development dimension

of Trade and environment: Case Studies on environmental requirements and Market access», 19 november 2002, CoM/enV/Td(2002)86/Final (available on the oeCd website).

9 With regard to relevant work by UnCTad, there is more detail under paragraph 33.


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2. Sector analysis

(a) Papers

Members Title date and SymbolJapan analysis on the relationship between Fisheries

Subsidies and over-exploitation of Fisheries resources

WT/CTe/W/226,24 april 2003

Japan Sustainable development and the Trade of Forest and Fishery Products

WT/CTe/W/222, 6 February 200310

Japan issues on Forestry Products Trade and environment

WT/CTe/W/211, 11 June 2002

new zealand Fisheries Subsidies WT/CTe/W/204, 19 March 2002

observersSaudi arabia energy Taxation, Subsidies and incentives in

oeCd Countries and their economic and Trade implications on developing Countries, in Particular developing oil Producing and exporting Countries

WT/CTe/W/215 and Tn/Te/W/9, 23 September 2002

UneP UneP Workshop on the impacts of Trade-related Policies on Fisheries and Measures required for their Sustainable Management, 15 March 2002, geneva, Chairman’s Summary

WT/CTe/W/205, 8 May 2002

(b) discussion

(i) agriculture

11. one group of Members argued that agricultural trade reform offered “win-win-win” opportunities for the environment, trade and development. Trade- and production-distorting agricultural subsidies had a negative effect not only in the countries that applied such policies (incentive for intensive farming practices), but also on the environment of other countries, particularly developing countries. Such subsidies increased the instability of the international price of agricultural commodities. This led to reduced returns from agriculture in developing countries, which discouraged production and investment. lower agriculture returns were linked to poverty - a major cause of environmental degradation. Conversely, increased returns would lead to higher incomes for developing country producers, thereby improving their financial capacity to maintain and pursue sustainable farming practices.

12. another group of Members was of the view that a certain level of domestic support was necessary to maintain various environmental benefits arising from agricultural production. Such environmental benefits included the maintenance of cultural landscapes, land conservation, management of water resources and the preservation of biodiversity.

10 This document was previously submitted by Japan as a proposal in the Negotiating Group on Market Access (TN/MA/W/15/Add.1, 6 January 2003).


WTo BiSd 2003 291

(ii) energy

13. Some Members and one observer were of the view that the energy sector also presented a potential “win-win-win” situation for environment, trade and development. They argued that existing taxation and subsidy schemes in oeCd countries were generally biased and discriminatory vis-à-vis petroleum products. There were negligible taxes on coal and gas, and, in addition, coal products in many oeCd countries, were subsidized. Such policies needed to be corrected. it was suggested that subsidies be removed and that fuel taxation be restructured to reflect carbon content – this would ensure that polluting sources (with higher carbon content) be penalized, not favoured. it was stressed that the issue was not climate change mitigation perse, but the impact of environmental policies on market access on the one hand, and their consistency with WTo rules on the other. Herein lay the relevance to the CTe mandate in paragraph 32(i). nevertheless, some other Members considered that the CTe was not the appropriate forum to discuss the impact of measures taken to mitigate climate change as this was being dealt with adequately in the UnFCCC11and the Kyoto Protocol.

(iii) Fisheries

14. There was a general recognition of the importance of achieving the objective of sustainable development in the fisheries sector. it was recalled by a number of Members that the very fact that negotiations on the subject of fish had been launched at the doha Ministerial Conference was largely based on the preceding CTe analysis. Subsequently, the WSSd Plan of implementation had reaffirmed the call to clarify and improve WTo disciplines on fisheries subsidies, taking into account the importance of this sector to developing countries.12

15. a few Members maintained that poor fisheries management – taking place under open-access fisheries – coupled with increasing world demand for fishery products was at the root of declining world fisheries resources resulting from over-exploitation and illegal, unreported and unregulated fishing. in this regard, subsidies could be an effective instrument to reduce capacity, for example through vessel buy-back programmes. one Member stressed that the possible effects of subsidies on resources changed depending on resource status and fishery management regimes. The cases of skipjack tuna, and purse seine fishery in the eastern Pacific ocean were referred to in this regard.13 it was argued that there was a need for flexibility among products when determining tariff levels, taking into account the level of fishery resources and the status of fishery management.

11 United nations Framework Convention on Climate Change (UnFCCC).12 WSSd Plan of implementation, paragraph 31(f). 13 For more detail, see WT/CTe/W/226.


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16. other Members argued that over-capacity, and, consequently, a significant part of over-exploitation of fisheries, was caused by subsidies. even when apparently sound management regimes were in place, subsidies could destabilize fisheries management and impede the objective of reducing over-capacity. a high value tuna species was given as an example of a particular fishery which was under a multinational management regime and where stocks had collapsed. it was emphasized that it was the trade measure (the subsidy) that generated over-capacity and needed to be disciplined. Trade liberalization, in concert with sustainable resource management, could stimulate more efficient production with more long-term environmental benefits. Trade barriers in the form of tariffs, or other non-tariff measures, were no substitute for effective resource management.

17. Most Members stressed that since relevant negotiations were taking place in the negotiating group on rules and the negotiating group on Market access the issue of fish was best left to these bodies. While agreeing that duplication of work needed to be avoided, one Member argued that the CTe needed to monitor the issue of subsidies from an over-exploitation point of view, i.e. an environmental point of view; this had always been the roleoftheCTE. another Member pointed out that the CTe could contribute to the ongoing negotiations, while avoiding an isolated CTe discussion, through paragraph 51 of the dMd.

18. all agreed that more could be done to provide technical assistance in natural resource conservation and management through the various international environmental organizations in the fisheries sector. Some Members reiterated the importance of further studies on the effects of fisheries subsidies and referred, in particular, to the work of the Food and agriculture organization of the United nations (Fao), UneP and the oeCd in this regard. one delegation in particular called for case studies with respect to the impact of subsidies on fishery resources.

(iv) Forests

19. Several Members recalled that the WSSd Plan of implementation attributed considerable importance to the concept of sustainable forest management.14 it was pointed out that as forests provided multiple benefits, such as the mitigation of global warming and the conservation of biological diversity, the issue needed to be dealt with in a cross-sectoral manner which included a discussion of trade-relevant elements. While Members agreed on the importance of achieving the objective of sustainable development, some stressed that there were different ways of achieving sustainable forest management. There was, therefore, a need to look at measures which ensured conservation without reducing countries’ ability to benefit economically from their forestry resources.

14 WSSd Plan of implementation, paragraph 45.


WTo BiSd 2003 293

20. Several Members shared the concern that international trade of illegally harvested forest products could undermine conservation efforts in source countries, as well as other environmental, economic, and social goals. The importance of appropriate domestic regulation, and the capacity to implement and monitor such regulation, was emphasized. in addition, it was pointed out that more attention needed to be given to the fact that poverty and high indebtedness fuelled the illegal exploitation of forestry resources and were at the root of the problem.

21. one Member considered that while domestic measures taken to combat illegal logging were needed, it was also important to examine possible internationalapproaches from a trade perspective, taking into account discussions in other international fora. in this regard, a positive contribution to the forestry issue presented a key challenge for the WTo. a number of other Members, however, were of the view that the issue was being appropriately dealt with in other fora and questioned the usefulness of debating it in the WTo. one Member emphasized the importance of regional initiatives and private-public partnerships in the forestry sector.

22. The same Member argued that there was a relationship between tarifflevels and over-exploitation and stressed that each Member needed to retain flexibility among products when determining the appropriate level of tariffs. a number of other Members, however, argued that tariffs and non-tariff measures were no substitute for efficient resource management and that tariff elimination would not inevitably lead to an exhaustion of natural resources. on the contrary, it was argued that tariff escalation on processed products greatly hampered developing countries’ efforts to achieve sustainable forest management. Moreover, the focus on tariff levels would open up the possibility of discrimination on the basis of non-product related process and production methods (PPMs), which remained unacceptable to several delegations. it was stressed that the modalities of the tariff reductions on forestry products was best left to the negotiating group on Market access.

23. one Member questioned the rationale and WTo-compatibility behind the use ofexportrestrictions for the preservation of forest resources when such restrictions were imposed on the raw material but not on processed products thereof. Some other Members maintained that such measures constituted part of the country’s sovereign right to protect its forest resources and were consistent with article XX(g) of the gaTT.

24. Several Members pointed out the importance of positivemeasures in the forestry sector. in this regard, national solutions would always be the most effective ones as they involved countries themselves in the conservation effort. Several Members noted that they were providing technical assistance and expertise through organizations with specific expertise in the area, such as the Fao, the United nations Forum on Forests (UnFF), the international Tropical Timber organization (iTTo), as well as the Convention on international Trade in endangered Species of Wild Fauna and Flora (CiTeS).


WTo BiSd 2003294

B. ParagraPH 32(ii) (TriPS)

TherelevantprovisionsoftheAgreementonTrade-RelatedAspectsofIntellectualPropertyRights(TRIPS).

(a) Papers

Members Title date and Symboleuropean Communities

review of article 27.3(B) of the TriPS agreement, and the relationship between the TriPS agreement and the Convention on Biological diversity (CBd) and the Protection of Traditional Knowledge and Folklore, «a Concept Paper»


observersUnCTad Seminar on Systems for the Protection and

Commercialization of Traditional Knowledge, Communiqué - new delhi, 3 – 5 april 2002

WT/CTe/W/214, iP/C/W/350, 26 June 2002

Convention on Biological diversity (CBd)

review of the Provisions of article 27.3(b), relationship between the TriPS agreement and the Convention on Biological diversity and Protection of Traditional Knowledge and Folklore

iP/C/W/347/add.1 and WT/CTe/W/210,10 June 2002

(b) discussion

25. Some Members were of the view that an amendment of the TriPS agreement to accommodate some essential elements of the Convention on Biological diversity (CBd) was necessary. Such an amendment could require that an applicant for a patent relating to biological materials or to traditional knowledge (i) disclose the source and country of origin of the biological resource and/or of the traditional knowledge used in the invention; (ii) give evidence of prior informed consent through approval of authorities; and, (iii) give evidence of fair and equitable benefit sharing. it was felt that a failure to provide a solution to this relationship could be detrimental to the objectives of the agreements themselves, and to sustainable development in general.

26. Some Members wished to further consider proposals such as the creation of an international instrument which would provide for a positive protection of

15 ThispaperwaspreviouslycirculatedasacommunicationfromtheEuropeanCommunitiesintheTRIPSCouncil(IP/C/W/383,17October2002).


WTo BiSd 2003 295

traditional knowledge at the national and regional levels. This would not only prevent misappropriation but would also guarantee that national benefit sharing mechanisms and laws were respected world-wide. The creation of a database on traditional knowledge was also mentioned. Such a database could be useful for authorities when granting patents to determine the novelty of an invention associated with traditional knowledge. regarding the disclosure of origin, one Member proposed the possible introduction of a system such as a “self-standing disclosure requirement” on biological resources and traditional knowledge. it was argued that this would allow WTo Members to keep track, at a global level, of all patent applications for which they themselves had granted access.

27. another group of Members argued that, from a legal perspective, the CBd and the TriPS agreement were mutually supportive. nevertheless, their implementation could create conflicts. Hence, both bodies of law needed to be implemented in a mutually supportive way in order not to undermine their respective objectives; sound national legislation and regulation was key to this. one Member argued that contractual systems, developed to protect sovereign rights over access to genetic resources or traditional knowledge, could be a means of effectively implementing CBd provisions in a manner that rendered changes to the TriPS agreement unnecessary. another Member suggested that a compilation of national experiences on CBd implementation could be useful for the work of both the CTe and the TriPS Council.

28. Most Members were of the view that key aspects of the debate on the relationship between the TriPS agreement and the CBd were being dealt with appropriately by the TRIPSCouncil and that the CTe needed to avoid duplicating such work. in the same vein, it was felt by some that the fundamental intellectual property rights issues should be left to the World intellectual Property organization (WiPo), an organization that had considerable expertise in this area.

29. The CTe also took note of the work undertaken in other fora, in particular with respect to the adoption, by the CBd, of the Bonn Guidelines onAccess toGeneticResourcesandFairandEquitableSharingoftheBenefitsArisingoutoftheirUtilization and the finalization, by the Fao, of the InternationalTreaty onPlantGeneticResourcesforFoodandAgriculture.


WTo BiSd 2003296

C. ParagraPH 32(iii) (laBelling)

Labellingrequirementsforenvironmentalpurposes.

(a) Papers

Members Title date and SymbolCanada labelling and requirements of the

agreement on Technical Barriers to Trade (TBT): Framework for informal, Structured, discussions.

WT/CTe/W/22916, 23 June 2003


labelling for environmental Purposes WT/CTe/W/2256 March 2003

Switzerland labelling for environment Purposes WT/CTe/W/219, 14 october 2002


labelling g/TBT/W/175, WT/CTe/W/212, 12 June 2002

observers

iSo Progress in environmental Management Systems (eMS) Standardization

WT/CTe/gen/1, 19 november 2002

(b) discussion

30. Most Members agreed that voluntary, participatory, market-based and transparent environmental labelling schemes were potentially efficient economicinstruments in order to inform consumers about environmentally friendly products. as such they could help move consumption on to a more sustainable footing. Moreover, they tended, generally, to be less trade restrictive than other instruments. it was also noted, however, that environmental labelling schemes could be misused for the protection of domestic markets. Hence, these schemes needed to be non-discriminatory and not result in unnecessary barriers or disguised restrictions on international trade. one Member questioned the assumption that comprehensive labelling schemes had a positive effect on achieving good environmental outcomes.

31. Some Members noted that for developing countries, and their SMes in particular, difficulties arose along with the growing complexity and diversity of environmental labelling schemes in export markets. While international standards for labelling had a significant potential to facilitate trade by promoting the convergence of labelling requirements, as was previously pointed out with respect to environmental requirements in general (paragraph 6 above), there was a need to better involve developing countries in the setting of environmental standards and regulations, whether at the national or international level. it was reiterated that developing countries were at a disadvantage due to limited or ineffective participation in these processes.

16 This paper was previously circulated by Canada in the TBT Committee as g/TBT/W/174/rev.1, 31 May 2002.


WTo BiSd 2003 297

32. For developing countries, the recognition of the equivalency of their own certification systems was an area of particular concern; it was important to concentrate on assisting developing countries to design schemes that supported environmental objectives within their own domestic context.

33. all agreed that transparency was of utmost importance with respect to environmental labelling schemes. information on regulations had to be properly disseminated in order for foreign producers not to be at a disadvantage and not to suffer unnecessary losses.

34. regarding the basis for environmental labelling schemes, some Members stressed that such schemes needed to be based on measurable scientific considerations. one Member was of the view that “consumer information” perse was a legitimate objective. others questioned what additional information needed to be provided in response to market and consumer demands beyond health, safety and direct environmental consequences of products (such as toxicity). Familiar differences of views remain on what was characterized by one Member as the root cause of controversy surrounding the labelling debate: the WTo compatibility of measures based on non product-related processes and production methods (npr PPMs).

35. Some Members considered that there was a need to reach some form of common understanding, interpretation or guidance with respect to labelling requirements for environmental purposes; it was desirable to clarify through agreement rather than through dispute settlement – without undermining existing WTo provisions. one Member proposed that the CTe could (i) come to a common understanding on the types of labelling schemes discussed and the meaning of the various terms used (environmental labelling, eco-labelling, labelling for environmental purposes); (ii) identify specific trade concerns relevant to environmental labelling; and (iii) make recommendations for necessary action.

36. another Member proposed that the CTe focus its discussions in a pragmatic way on one particular type of eco-label where common views might be easier to achieve: voluntarylabelsbasedonthelife-cycleapproach. it was pointed out that such labels were increasingly based on international standards and the standards of the international organization for Standardization (iSo) were referred to in this regard. it was emphasized that such a discussion would take place within existing rules and would not extend to non-product related PPMs, nor would it prejudge discussions on other types of eco-labelling schemes. it was pointed out that the life-cycle approach was inherently an environmental concept and therefore appropriately dealt with in the CTe. it was suggested that the CTe could agree on the principle that the use of voluntary eco-labelling schemes based on a life-cycle approach was legitimate within the rights and obligations of the WTo agreements. The idea of a notification procedure – or other appropriate means of consultation – for existing and new such schemes was flagged, as well as the need to assist developing countries in entering niche markets.


WTo BiSd 2003298

Several other Members welcomed the focus on voluntary schemes and agreed that the issue was, at its root, a market access one. Some welcomed further discussions on this point. However, concern was expressed with regard to the concept of life-cycle approach and the notion of agreeing on the “principle” of the legitimacy of such schemes under WTo rules; it was pointed out that any interpretation of voluntary eco-labelling programmes needed to come from the TBT Committee. Moreover, given the non-governmental nature of many of the schemes at issue, some questioned (i) how the WTo could facilitate the use of such eco-labels, (ii) the feasibility of the suggested notification procedures and, (iii) what contribution, or added value, the WTo could provide considering work done in other fora, such as the iSo.

37. Most Members were of the view that existing WTo disciplines were adequate to deal with the issue of environmental labelling, including specific trade concerns that could arise. The issue was one of satisfactory implementation of the SPS and TBT agreements. in their view, no compelling argument had been made for the need for a common understanding or guidance to be negotiated. nor was it clear that further work on this issue needed to include the clarification of existing rules. The TBT and SPS agreements had created the appropriate balance of rights and obligations for both mandatory and voluntary labelling programmes.

38. With respect to voluntary environmental labelling schemes, the importance of the TBT agreement’s Code of good Practice for the Preparation, adoption and application of Standards17 was stressed, and acceptance of this Code by the bodies developing labelling requirements was encouraged. Moreover, it was recalled that the TBT Committee’s decision on the “Principles for the development of international Standards” provided useful guidance.18 This decision contained the principles for the development of standards, including environmental labelling standards. These were: transparency, inclusiveness or openness (that all stakeholders be involved in the development of the standard), impartiality and consensus, effectiveness and relevance, coherence, and, wherever possible, responsiveness to the needs and interests of developing countries.

39. While all agreed on the necessity of having a structured approach to the discussions, and the need to avoid duplication, views diverged on the appropriate forum to discuss the issue of environmental labelling. Some Members were of the view that, considering the mandate contained in paragraph 32(iii) which instructed the CTe to give particular attention to labelling requirements for environmental purposes, the CTe needed to intensify its work on environmental labelling. The discussion in the CTe could then be used as an input to the debate in the TBT Committee. They felt that

17 annex 3 of the TBT agreement.18 g/TBT/9, 13 november 2000, «Second Triennial review of the operation and implementation of the

agreement on Technical Barriers to Trade», annex 4.


WTo BiSd 2003 299

it would not be appropriate to make work in the CTe conditional on progress in the TBT Committee which did not have a mandate specific to labelling for environmental purposes.

40. Many other Members, however, held a different view. They argued that the TBT Committee was better suited for the task of deliberating WTo rules vis-à-vis labelling since it was already discussing labelling in general, including environmental labelling. it would be unwise for the CTe either to preempt or to duplicate such work and more preferable to consider the results of the work carried out in the TBT Committee before taking a decision on the course of action for the CTe.

41. it was pointed out that work could be pursued on both tracks in parallel, as had been done before, and that one way of doing this would be to maintain frequent communication between the Chairpersons of the two bodies. looking ahead, one Member suggested that the CTe could give priority to certain issues, such as the trade impacts on developing countries of environmental labelling schemes and, for example, the extent to which such schemes could help achieve the goal of sustainable development.

42. as a recommendationfortheCancúnMinisterialConference, one Member proposed that the CTe hold, before the end of 2004 and in addition to its usual schedule of meetings to be agreed, three “dedicated sessions” to engage in a positive dialogue on governmental and non-governmental voluntary eco-labelling schemes, notably those based on life-cycle analysis (lCa).19

C. oTHer ParagraPH 32 iTeMS

43. it is recalled that CTe Members were instructed, under paragraph 32, to pursue work on allitems20on the CTe work programme within its current terms of reference. The issues below reflect substantive discussions under paragraph 32 that have not been covered above.

19 european Communities in Job(03)/130.20 The items of the CTe work programme, derived from the 1994 decision on Trade and environment,

are contained in annex 2.


WTo BiSd 2003300

(a) Papers

observers Title date and SymbolCiTeSItems1and5

economic incentives and Trade Policy

WT/CTe/gen/7, 11 February 2003;WT/CTe/gen/6, 20 november 2002; WT/CTe/gen/5, 20 november 2002

UnePItems1and5

enhancing Synergies and Mutual Supportiveness of Meas and the WTo, a Synthesis report

WT/CTe/W/213, 12 June 2002and WT/CTe/gen/4, 20 november 2002

WTo SecretariatItems1and5 gaTT article XX paragraphs (b), (d)

and (g)WT/CTe/W/203, 8 March 2002

(General) Selective Bibliography on Trade and environment 1995-2002

WT/CTe/W/49/add.1, 7 october 2002

Item9 discussion Paper on the environmental effects of Services Trade liberalization

WT/CTe/W/218, 3 october 2002

Item4 environmental database For 2001 WT/CTe/edB/1 (and Corr.1),31 May 2002

(b) discussion

44. Under items 1 and 5, the CTe took note of the document prepared by the Secretariat on gaTT article XX paragraphs (b), (d) and (g). Some Members were of the view that the evolution of WTo jurisprudence (in respect of article XX) favoured the protection of the environment, and was an additional reason for environmentalists to be more at ease with the ability of the WTo to address environmental concerns.

45. Under item 2, the CTe took note of a report entitled “Uncertainty and Precaution: implications for Trade and environment”, developed by the oeCd Joint Working Party on Trade and environment. The paper examined, inter alia, how the concept of precaution fitted into the framework of environmental protection and provided a brief overview of how it was reflected in national laws and international environmental instruments.

46. The CTe took note of the environmental database for 2001, submitted under item 4. all notifications that were environment-related or included environmental references were listed in this document, as well as the trade policy reviews in which reference was made to environment-related measures or provisions.


WTo BiSd 2003 301

47. Under item 9 the CTe took note of a Secretariat document, prepared at the request of Members, on the environmental effects of services trade liberalization. The paper was also relevant, at least in part, to item 6 as it considered the environmental benefits of removing trade restrictions. The paper focused on three sectors (tourism, transport and environmental services) as a way of illustrating some of the links between liberalization of trade in services and the environment.

48. Under item 10, the WTo held, on 29 april – 1 May 2002, a two and a half day public symposium entitled “The doha development agenda and Beyond”. one session was devoted to trade and environment. on 16-18 June 2003, the WTo held another public symposium entitled “Challenges ahead on the road to Cancún”. a number of sessions were relevant to trade and environment. also, under this agenda item, UneP underlined the importance of observer status for intergovernmental environmental organizations, including the Secretariats of Multilateral environmental agreements (Meas), in WTo negotiations on trade and environment.

iii. ParagraPH 33

Werecognizetheimportanceoftechnicalassistanceandcapacitybuildinginthefieldoftradeandenvironmenttodevelopingcountries,inparticularthe least-developed among them. We also encourage that expertise andexperience be shared with Members wishing to perform environmentalreviewsatthenationallevel.AreportshallbepreparedontheseactivitiesfortheFifthSession.

49. The CTe considered the two aspects of paragraph 33 separately:

(a) Technical assistance and capacity building; and

(b) national environmental reviews.


WTo BiSd 2003302

a. TeCHniCal aSSiSTanCe and CaPaCiTY BUilding

(a) Papers

Members Title date and SymbolUnited States Paragraph 33 of the doha declaration WT/CTe/W/227

29 april 2003observersUneP UneP Workshop on Capacity Building on

environment, Trade and development, 19-20 March 2002, geneva, Chairman’s Summary

WT/CTe/W/206, 8 May 2002

WTo SecretariatTechnical assistance and Capacity Building activities in 2002

WT/CTe/W/216, 30 September 2002

WTo, UneP and Mea Secretariats

Mea information Session on Technical assistance,Capacity Building and enhancing information exchange

WT/CTe/W/209, 5 June 2002

(b) discussion

50. Members took note of the WTOSecretariat’s technical assistance activities (annex 3). The main focus of these activities was on regional seminars directed at government representatives from trade and environment ministries, organized in cooperation with – as well with the participation of – the secretariats of UneP, UnCTad and Meas. “Side events” at certain Mea meetings, such as the meetings of the Conference of the Parties, had also been organized. These events targeted developing country participants in environmental fora with the objective of increasing their level of awareness vis-à-vis specific trade-related issues.

51. in the context of environment-related technical assistance and capacity building, the importance of marketaccess was reiterated: aid did not replace trade. in this vein, several Members were of the view that capacity building efforts should focus on the needs identified in the discussion under paragraph 32(i) (see above).

52. Moreover, Members encouraged activities that brought together trade and environment officials in a manner that enhanced coordinationandpolicycoherence at the national level. emphasis was placed on the need to ensure that developing countries had the resources and the capacity to engage fully in, and make contributions to, the doha mandate. involving trade and environment officials from non-resident Members in WTo seminars and meetings could contribute to this goal. The need to target negotiators was also underscored. Members encouraged further cooperation and coordination between the WTo, UneP, UnCTad and Meas in the delivery of technical assistance. Several stressed the need for follow-up thereto.

53. Some Members reported on their own technical assistance activities. in addition, one Member presented a paper on technical assistance and environmental


WTo BiSd 2003 303

reviews that emphasized, inter alia, the importance of establishing lines of communications between trade and environment officials at national levels.

54. UnCTad’s technical assistance and capacity-building activities in the area of trade, environment and development fall into three segments: (i) activities that are part of the environmental component of UnCTad’s programme on technical assistance and capacity building for developing countries, especially ldCs, and economies in transition in support of their participation in the WTo post-doha work programme; (ii) activities in the context of the joint UneP-UnCTad Capacity-building Task Force (CBTF) on Trade, environment and development; and (iii) a UK dFid-funded project on building capacity for improved policy-making and negotiation on key trade and environment issues. Moreover, UnCTad’s intergovernmental work also focused on specific issues of the dMd. The Commission on Trade in goods and Services, and Commodities convened an expert Meeting on environmental requirements and international Trade (2-4 october 2002). The meeting highlighted that environmental and health requirements had become more frequent, stringent and complex. experts discussed various approaches to assist developing countries in strengthening capacities to respond to and anticipate environmental/health requirements, in particular as regards information gathering and dissemination, standard setting and supportive policies.

55. The main objectives of UneP’s technical assistance is to raise awareness and understanding of the linkages between trade, environment and development, and enable countries to: (i) assess the environment and development impacts of trade and trade liberalization; (ii) engage effectively in trade and environment negotiations; (iii) formulate and implement mutually supportive policies to meet national obligations under multilateral trade and environment agreements, while also maximizing the net development gains of trade liberalization; and (iv) capture environment-related development opportunities offered by trade and globalization. To this end, UneP undertook capacity-building workshops, training, policy dialogues, and country projects. of particular relevance to the CTe, UneP organized a series of back-to-back meetings with the CTe regular Session and, a Workshop on Capacity Building on environment, Trade and development, which took place in geneva, on 19-20 March 2002. The meeting provided an open forum for governments, intergovernmental organizations, regional and sub-regional organizations, policy research institutes and ngos to assess emerging needs and current approaches to capacity building. This meeting has been followed up by activities at the regional level, including UneP-UnCTad CBTF workshops held back-to-back with WTo regional seminars, and a UneP regional meeting in Mexico City on 27-28 March 2003.


WTo BiSd 2003304

B. enVironMenTal reVieWS aT THe naTional leVel

(a) Papers

Members Title date and Symboleuropean Communities

documentation pertaining to an eC Seminar on Sustainability impact assessment of Trade agreements.


Canada initial environmental assessment: Trade negotiations in the World Trade organization, Submission by Canada.

WT/CTe/W/221, 24 January 2003


Sustainability impact assessment WT/CTe/W/208, also WT/CoMTd/W/99 and Tn/Te/W/3), 3 June 2002

(b) discussion

56. it was recalled that the importance of environmental reviews in WTo trade negotiations had been confirmed in the dMd and, subsequently, in the WSSd Plan of implementation.21 Moreover, the value of environmental impact assessment (eias) was recognized by Principle 17 of the rio declaration.22 While some Members emphasized the usefulness of an exchange of information on methods of environmental reviews and on implementation thereof, others noted the constraints facing developing countries in this regard. Some Members stressed the fact that environmental reviews at the national level, besides being voluntary, needed to be consistent with a country’s priorities and that the task of developing countries should not be made more onerous by harmonizing review procedures. Such reviews had to be carried out in the light of national requirements, capacities, level of development, expertise, and the local situation.

57. one Member presented a paper on its initial environmental assessmentof the WTo Trade negotiations. This assessment suggested that, in the aggregate, any effect the new WTo negotiations might have on the national environment was likely to be minimal, on account of one or a combination of three reasons: (i) further trade liberalization was likely to affect only a small proportion of the country’s trade as the bulk of it was already subject to a regional trade agreement and other free trade agreements; (ii) federal and provincial environmental legislation, policies and measures that could mitigate negative effects were already, or would soon be in place;

21 WSSd Plan of implementation, paragraph 97(d). 22 rio Principle 17 reads as follows: «environmental impact assessment, as a national instrument, shall

be undertaken for proposed activities that are likely to have a significant adverse impact on the environ-ment and are subject to a decision of a competent national authority.»


WTo BiSd 2003 305

and (iii) certain negotiations would not directly translate into increased production or trade, and therefore, were unlikely to lead to any environmental negative effects.

58. one Member informed the CTe of its activities regarding procedures and methodologies used for sustainabilityimpactassessments (Sias). it was noted that the underlying objective of Sias was to improve quality, coherence and synergies of trade policies with other objectives by informing negotiators about the impact of negotiations on the environment, social development and the economy. a better identification of linkages between these different aspects could facilitate the development of the appropriate policy mix to mitigate negative effects and maximise positive ones for sustainable development. it was stressed that no Member had the perfect tool for this exercise and that such a tool needed to be adapted to each particular situation. it was suggested that the CTe could discuss concrete cases.

59. another Member was of the view that Sias posed particular difficulties for developing countries in that they added intangible elements to the concept of an eia. in their view, Sias did not take into account the diversity of countries and had the potential effect of constituting an additional means to prevent access of developing countries’ goods and services into developed countries’ markets. Sias needed to be used as an instrument to identify the difficulties faced by developing countries so as to promote sustainable development and overcome these difficulties; they needed to aim at bringing environmental, economical and social benefits to all countries.

60. other Members informed the CTe of the statusquo of environmental reviews of the WTo negotiations and other major trade agreements in their own countries.

61. The CTe took note of UneP’s work on environmental reviews at the national level. This included the completion of reports on six countries (argentina, China, ecuador, nigeria, Senegal, and Tanzania) as well as a synthesis report and a reference Manual for the integrated assessment of Trade-related Policies. a further round of seven country projects focusing on integrated assessment of the effects of trade-related policies on the rice sector was currently underway.


WTo BiSd 2003306

anneXeS

anneX 1: doHa MiniSTerial deClaraTion, ParagraPHS 32 and 33

“32. We instruct the Committee on Trade and environment, in pursuing work on all items on its agenda within its current terms of reference, to give particular attention to:

(i) the effect of environmental measures on market access, especially in relation to developing countries, in particular the least-developed among them, and those situations in which the elimination or reduction of trade restrictions and distortions would benefit trade, the environment and development;

(ii) the relevant provisions of the agreement on Trade-related aspects of intellectual Property rights; and

(iii) labelling requirements for environmental purposes.

Work on these issues should include the identification of any need to clarify relevant WTo rules. The Committee shall report to the Fifth Session of the Ministerial Conference, and make recommendations, where appropriate, with respect to future action, including the desirability of negotiations. The outcome of this work as well as the negotiations carried out under paragraph 31(i) and (ii) shall be compatible with the open and non-discriminatory nature of the multilateral trading system, shall not add to or diminish the rights and obligations of Members under existing WTo agreements, in particular the agreement on the application of Sanitary and Phytosanitary Measures, nor alter the balance of these rights and obligations, and will take into account the needs of developing and least-developed countries.

33. We recognize the importance of technical assistance and capacity building in the field of trade and environment to developing countries, in particular the least-developed among them. We also encourage that expertise and experience be shared with Members wishing to perform environmental reviews at the national level. a report shall be prepared on these activities for the Fifth Session.” [emphasis added]

anneX 2: iTeMS oF THe CTe WorK PrograMMe

iTeM 1: The relationship between the provisions of the multilateral trading system and trade measures for environmental purposes, including those pursuant to multilateral environmental agreements.

iTeM 2: The relationship between environmental policies relevant to trade and environmental measures with significant trade effects and the provisions of the multilateral trading system.


WTo BiSd 2003 307

iTeM 3(a): The relationship between the provisions of the multilateral trading system and charges and taxes for environmental purposes.

iTeM 3(B): The relationship between the provisions of the multilateral trading system and requirements for environmental purposes relating to products, including standards and technical regulations, packaging, labelling and recycling.

iTeM 4: The provisions of the multilateral trading system with respect to the transparency of trade measures used for environmental purposes and environmental measures and requirements which have significant trade effects.

iTeM 5: The relationship between the dispute settlement mechanisms in the multilateral trading system and those found in multilateral environmental agreements.

iTeM 6: The effect of environmental measures on market access, especially in relation to developing countries, in particular to the least developed among them, and environmental benefits of removing trade restrictions and distortions.

iTeM 7: The issue of exports of domestically prohibited goods.

iTeM 8: The relevant provisions of the agreement on Trade-related aspects of intellectual Property rights.

iTeM 9: The work programme envisaged in the decision on Trade in Services and the environment.

iTeM 10: input to the relevant bodies in respect of appropriate arrangements for relations with intergovernmental and non-governmental organizations referred to in article V of the WTo.


WTo BiSd 2003308

anneX 3: WTo SeCreTariaT TeCHniCal aSSiSTanCe

and CaPaCiTY BUilding aCTiViTieS23

Date Type Place Coverage With the participation of28-30 Jan

2002regional Seminar

Saint lucia Caribbean countries CiTeS, Basel Convention, Montreal Protocol, UneP,

UnCTad5-7 Mar

2002regional Seminar

Bogota latin american countries

UnCTad

8 Mar 2002

Side event new York developing country participants at UnFF2

-

9 apr 2002 Side event The Hague developing country participants to the

CBd CoP6

-

13-15 May 2002

regional Seminar

Singapore asian countries UneP regional office, UnCTad

30 May 2002

Trade Policy

istanbul Members of the organization of the islamic Conference

(oiC)

in cooperation with the islamic development Bank (idB) and the organization of the islamic Conference

(oiC).

9-11 Jun 2002

regional Seminar

Windhoek english-speaking african Countries

UneP regional office, UnCTad

21 Jun 2002

Trade Policy Course (TCd)

addis ababa

african countries in cooperation with the african development Bank (adB) and the

United nations economic Commission for africa

(eCa).

1 aug 2002

Trade Policy Course

(Training institute)

Casablanca French-speaking african Countries

Partnership with InstitutdeCommerce

etd’AdministrationdesEntreprises(ISCAE)

20-23 aug 2002

Trade Policy Course

(Training institute)

nairobi english-speaking african Countries

Partnership with the University of nairobi.

including one-day visit to UneP

10-12 Sep 2002

regional Seminar

riga Central and eastern european countries

UneP, UnCTad, UnFCCC

15-17 oct 2002

regional Seminar

Tunis French-speaking african Countries

UnCTad, Basel Convention, CiTeS

24 oct 2002

Trade Policy Course (TCd)

Vienna developing countries organized in cooperation with the Joint Vienna

institute

23 The table includes those activities organized by the WTo and which took place outside of geneva (except for Side events). it does not include activities in which the WTo was simply represented, nor does it cover geneva-based technical assistance such as trade policy courses or introductory courses for ldCs. The «*» indicates a planned event.


WTo BiSd 2003 309

Date Type Place Coverage With the participation of6 nov 2002

Side event Santiago developing country participants to CoP12

of the CiTeS

-

20-21 nov 2002

national Beijing China -

26-28 nov 2002

regional Seminar

Suva Pacific island economies

UneP, UnCTad

27 nov 2002

Side event rome Sixth Meeting of the Conference of the

Parties (CoP-6) to the Vienna Convention for the Protection of the ozone layer and the Fourteenth Meeting of the Parties (MoP-14) to the Protocol of

Montreal

-

13 dec 2002

Side event geneva Sixth Meeting of the Conference of the

Parties to the Basel Convention (CoP 6)

25-27 Feb 2003

regional Seminar

Santa Cruz de Bolivia

regional Seminar on Trade and environment

for latin american Countries

UnCTad, CiTeS and Basel Convention

12-17 May 2003

Side event Panama City

34th Session of the international Tropical

Timber Council

-

19-21 May 2003

regional Seminar

South africa

english-speaking african Countries

UneP, UnCTad

6 Jun 2003 Side event geneva United nations Forum on Forests, 3rd Session

(UnFF3)*aug 2003 regional

SeminarJordan arab and Middle east UneP

*oct 2003 regional Seminar

djibouti French-speaking african Countries

*nov 2003 regional Seminar

Jamaica latin america and the Caribbean

UneP / UnCTad CTBF

*dec 2003 national Seminar

Korea, republic of

republic of Korea


Tanzania Tanzania


Uruguay Uruguay

*dec 2003 regional Seminar

Hungary eastern european Countries

UneP / UnCTad CTBF


WTo BiSd 2003310

COUNCIL FOR TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS

iMPleMenTaTion oF arTiCle 66.2 oF THe TriPS agreeMenT

DecisionoftheCouncilforTRIPSof19February2003(IP/C/28)

The Council for Trade-related aspects of intellectual Property rights (the “Council for TriPS”),

Havingregard toarticle 66.2 of the agreement on Trade-related aspects of intellectual Property rights (the “TriPS agreement”);

Having regard to the instructions of the Ministerial Conference to the Council for TriPS contained in paragraph 11.2 of the decision on implementation-related issues and Concerns (WT/Min(01)/17), adopted on 14 november 2001;

Withaviewto putting in place a mechanism for ensuring the monitoring and full implementation of the obligations in article 66.2, as called for by that decision;

With a view further to establishing arrangements for annual reports by developed country Members and their annual review by the Council for TriPS, as also called for by that decision;

Decides as follows:

1. developed country Members shall submit annually reports on actions taken or planned in pursuance of their commitments under article 66.2. To this end, they shall provide new detailed reports every third year and, in the intervening years, provide updates to their most recent reports. These reports shall be submitted prior to the last Council meeting scheduled for the year in question.

2. The submissions shall be reviewed by the Council at its end of year meeting each year. The review meetings shall provide Members an opportunity to pose questions in relation to the information submitted and request additional information, discuss the effectiveness of the incentives provided in promoting and encouraging technology transfer to least-developed country Members in order to enable them to create a sound and viable technological base and consider any points relating to the operation of the reporting procedure established by the decision.

3. The reports on the implementation of article 66.2 shall, subject to the protection of business confidential information, provide, inter alia, the following information:

WTo BiSd 2003 311

Council for Trade-related aspects of intellectual Property rights

(a) an overview of the incentives regime put in place to fulfil the obligations of article 66.2, including any specific legislative, policy and regulatory framework;

(b) identification of the type of incentive and the government agency or other entity making it available;

(c) eligible enterprises and other institutions in the territory of the Member providing the incentives; and

(d) any information available on the functioning in practice of these incentives, such as:

- statistical and/or other information on the use of the incentives in question by the eligible enterprises and institutions;

- the type of technology that has been transferred by these enterprises and institutions and the terms on which it has been transferred;

- the mode of technology transfer;

- least-developed countries to which these enterprises and institutions have transferred technology and the extent to which the incentives are specific to least-developed countries; and

- any additional information available that would help assess the effects of the measures in promoting and encouraging technology transfer to least-developed country Members in order to enable them to create a sound and viable technological base.

4. These arrangements shall be subject to review, with a view to improving them, after three years by the Council in the light of the experience.


WTo BiSd 2003312

WAIVERS

WaiVerS Under arTiCle iX oF THe WTo agreeMenT

during the period under review, the general Council granted the following waivers from obligations under the WTo agreements, which are still in effect.

MeMBer TYPe deCiSion oF eXPirY doCUMenT

Sri lanka implementation of the Harmonized Commodity description and Coding System - extensions of Time-limit

24 July 200316 december

2003

31 october 2003

30 april 2004

WT/l/532WT/l/556

argentina introduction of Harmonized System 1996 changes into WTo Schedules of Tariff Concessions - extension of Time-limit

24 July 2003 30 april 2004

WT/l/523

el Salvador introduction of Harmonized System 1996 changes into WTo Schedules of Tariff Concessions - extension of Time-limit

24 July 2003 31 october 2003

WT/l/525

israel introduction of Harmonized System 1996 changes into WTo Schedules of Tariff Concessions - extension of Time-limit


2003

30 october 2003

30 april 2004

WT/l/531WT/l/554

Malaysia introduction of Harmonized System 1996 changes into WTo Schedules of Tariff Concessions - extension of Time-limit

24 July 2003 30 april 2004

WT/l/529

Morocco introduction of Harmonized System 1996 changes into WTo Schedules of Tariff Concessions - extension of Time-limit

24 July 2003 31 october 2003

WT/l/530

Pakistan introduction of Harmonized System 1996 changes into WTo Schedules of Tariff Concessions - extension of Time-limit

24 July 2003 30 april 2004

WT/l/528

Panama introduction of Harmonized System 1996 changes into WTo Schedules of Tariff Concessions - extension of Time-limit

24 July 2003 30 april 2004

WT/l/524

Thailand introduction of Harmonized System 1996 changes into WTo Schedules of Tariff Concessions - extension of Time-limit


2003

31 october 2003

30 april 2004

WT/l/527WT/l/555

313WTo BiSd 2003

Waivers

MeMBer TYPe deCiSion oF eXPirY doCUMenT

Venezuela introduction of Harmonized System 1996 changes into WTo Schedules of Tariff Concessions - extension of Time-limit

24 July 2003 31 october 2003

WT/l/526

australia, Brazil, Canada, israel, Japan, Korea, Philippines, Sierra leone, Thailand, United arab emirates and the United States

- Countries covered by the Waiver pursuant to a notification to the Council for Trade in goods under Paragraph 3 of the waiver (WT/l/518):BulgariaCroatiaCzech republiceuropean CommunitiesHungaryMauritiusMexiconorwayromaniaSeparate Customs Territory of Taiwan, Penghu, Kinmen and MatsuSloveniaSwitzerlandVenezuela

Kimberley Process Certification Scheme for rough diamonds

15 May 2003 31 decem-ber 2006

WT/l/518

g/C/39g/C/36

g/C/27

g/C/25g/C/28g/C/33g/C/41g/C/43g/C/34

g/C/30

g/C/35g/C/26g/C/40


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COUNCIL FOR TRADE IN SERVICES IN SPECIAL SESSION

ModaliTieS For THe TreaTMenT oF aUTonoMoUS liBeralizaTion

AdoptedbytheSpecialSessionoftheCouncilforTradeinServiceson6March2003

(TN/S/6)

i. inTrodUCTion

1. These modalities for the treatment of autonomous liberalization measures undertaken by a Member since previous negotiations are established pursuant to article XiX:3 of the gaTS, paragraph 15 of the doha Ministerial declaration (WT/Min(01)/deC/1), and paragraph 13 of the guidelines and Procedures for the negotiations on Trade in Services (S/l/93).

2. 1

3. For the purposes of these modalities, a “liberalizing Member” is a Member seeking credit for an autonomous liberalization measure; and a “trading partner” is a Member from whom credit is being sought.

4. an “autonomous liberalization measure” is a measure

(a) subject to scheduling under Part iii of the gaTS, and/or leading to the termination of an MFn exemption,

(b) compatible with the MFn principle,

(c) undertaken by the liberalizing Member unilaterally,2 since previous negotiations, in accordance with article XiX of the gaTS, and

(d) applicable to any or all service sectors.

ii. CriTeria For aSSeSSing THe ValUe oF aUTonoMoUS liBeralizaTion MeaSUreS

5. in assessing the value of an autonomous liberalization measure, a Member may use the following illustrative criteria:

(a) sectoral coverage,

1 These modalities are without prejudice to the rights and obligations of Members under the gaTS.2 it is understood that liberalization measures undertaken as part of economic reform programmes, in-

cluding those under the auspices of the international Monetary Fund and the World Bank, should be considered as «autonomous liberalization measures» for the purposes of these modalities, in so far as they meet the criteria set out in this paragraph.

WTo BiSd 2003 315

Council for Trade in Services in Special Session

(b) liberalizing nature of the measure concerned (e.g. elimination of measures restricting market access; elimination of existing measures which are inconsistent with national treatment and/or MFn),

(c) the date of entry into force and the duration of the measure,

(d) share of the sector in the total trade of the trading partner,

(e) share of the trading partner in the total trade in the sector autonomously liberalized by the liberalizing Member,

(f) importance and impact of the autonomous liberalization measures on the liberalizing Member’s economy,

(g) market potential in the liberalizing Member for the trading partner,

(h) opportunities for the expansion of foreign participation in the sector after the introduction of the measure,

(i) whether the measure in question has already been scheduled and, if not, whether the liberalizing Member is willing to do so.3

6. To facilitate the assessment of the value of an autonomous liberalization measure, the liberalizing Member and its trading partner may agree to use either a qualitative or a quantitative approach (for example, formulae, improvement indices, ranking methods), or a combination of both approaches.

7. in assessing the value of credits, a Member may use the criteria and approaches set out in paragraphs 4 and 5 above, as appropriate.

8. in applying the above approaches and criteria, a Member shall take into account the level of development and the size of economies of individual Members, both overall and in individual sectors.

iii. ProCedUreS

9. The application of these modalities may be advanced bilaterally, plurilaterally, or multilaterally. The granting of credit for autonomous liberalization measures shall be advanced through bilateral negotiations.

3 a measure’s legal certainty and predictability would be greatly enhanced with a liberalizing Member’s readiness to bind it at the conclusion of the current negotiations. This aspect should be duly taken into account when assessing both the value of specific autonomous liberalization measures and the corre-sponding credit.


WTo BiSd 2003316

10. a liberalizing Member shall make the autonomous liberalization measure for which credit is being sought known to its trading partner. The liberalizing Member may, if it deems it appropriate, also notify such a measure to the Special Session of the Council for Trade in Services. it is understood that such a notification neither guarantees any right for credit, nor implies any obligation on the part of the liberalizing Member to bind the notified measure.

11. an autonomous liberalization measure notified or made known to a trading partner should contain information based on the relevant criteria set out in Part ii of these modalities, and specify the credit being sought. The credit to be sought may take the form of,

(a) a liberalization measure to be undertaken by a trading partner in sectors of interest to the liberalizing Member under the gaTS,

(b) refraining from pursuing a request addressed to the liberalizing Member, or

(c) any other form which the liberalizing Member and its trading partner may agree upon.

12. a liberalizing Member claiming credit for an autonomous liberalization measure shall be given adequate opportunity to discuss its request with its trading partner. if the trading partner considers that an autonomous liberalization measure is of little or no trading value, it should provide information on the evaluation as early as possible to allow time for the liberalizing Member to request further consultations.

13. any Member may bring to the attention of the Special Session of the Council for Trade in Services any matter that relates to the application of these modalities.

iV. deVeloPing CoUnTrieS

14. Pursuant to the objectives of the gaTS, as stipulated in the Preamble, article iV, and article XiX:2, and in line with paragraph 2 of the doha Ministerial declaration, these modalities shall be used interalia as a means of promoting the economic growth and development of developing countries and their increasing participation in trade in services.

15. in the application of these modalities, and in recognizing and granting credit pursuant to these modalities, Members shall take fully into account the flexibility provided for individual developing country Members under the provisions referred to in paragraph 13 above, as well as the level of development of developing country Members in relation to other Members. Special consideration shall be given to the least-developed country Members.

WTo BiSd 2003 317


ModaliTieS For THe SPeCial TreaTMenT For leaST-deVeloPed CoUnTrY MeMBerS in THe negoTiaTionS on Trade in SerViCeS

AdoptedbytheSpecialSessionoftheCouncilforTradeinServiceson3September2003

(TN/S/13)

i. oBJeCTiVeS and PrinCiPleS

1. in pursuance of the objectives of the gaTS and as required by article XiX:3 of the gaTS special treatment for least-developed country Members (ldCs) shall be granted by providing special priority to ldCs in the implementation of paragraphs 1 and 2 of article iV of the gaTS. Particular account shall be taken of the serious difficulty of ldCs in undertaking negotiated specific commitments in view of their special economic situation and their development, trade and financial needs.

2. The importance of trade in services for ldCs goes beyond pure economic significance due to the major role services play for achieving social and development objectives and as a means of addressing poverty, upgrading welfare, improving universal availability and access to basic services, and in ensuring sustainable development, including its social dimension. ldCs are facing serious difficulty in addressing a number of complex issues simultaneously, and lack institutional and human capacities to analyse and respond to offers and requests. This should be factored into the negotiating process in general and regarding the individual requests made to ldCs.

3. Together with the guidelines and Procedures for the negotiations on Trade in Services (S/l/93), the Modalities for the Special Treatment for least-developed Country Members in the negotiations on Trade in Services shall ensure maximum flexibility for ldCs and shall form the basis for the negotiations.

ii. SCoPe

4. Members shall take into account the serious difficulty of ldCs in undertaking negotiated specific commitments in view of their special economic situation, and therefore shall exercise restraint in seeking commitments from ldCs. in particular, they shall generally not seek the removal of conditions which ldCs may attach when making access to their markets available to foreign service suppliers to the extent that those conditions are aimed at achieving the objectives of article iV of the gaTS.

5. There shall be flexibility for ldCs for opening fewer sectors, liberalizing fewer types of transactions, and progressively extending market access in line with their development situation. ldCs shall not be expected to offer full national treatment, nor are they expected to undertake additional commitments under article XViii of the gaTS on regulatory issues which may go beyond their institutional, regulatory, and administrative capacities. in response to requests, ldCs may make commitments

318 WTo BiSd 2003

decisions and reports not included

compatible with their development, trade and financial needs and which are limited in terms of sectors, modes of supply and scope.

6. Members shall, as provided for in articles iV and XiX of the gaTS, give special priority to providing effective market access in sectors and modes of supply of export interest to ldCs, through negotiated specific commitments pursuant to Parts iii and iV of the gaTS. ldCs should indicate those sectors and modes of supply that represent priority in their development policies, so that Members take these priorities into account in the negotiations.

7. Members shall work to develop appropriate mechanisms with a view to achieving full implementation of article iV:3 of the gaTS and facilitating effective access of ldCs’ services and service suppliers to foreign markets.

8. Members shall take measures, in accordance with their individual capacities, aimed at increasing the participation of ldCs in trade in services. Such measures could include:

• strengthening programmes to promote investment in ldCs, with a view to building their domestic services capacity and enhancing their efficiency and export competitiveness;

• reinforcing export/import promotion programmes;

• promoting the development of ldCs' infrastructure and services exports through training, technology transfer, enterprise level actions and schemes, intergovernmental cooperation programmes, and where feasible, financial resources; and

• improving the access of ldCs' services and service suppliers to distribution channels and information networks, especially in sectors and modes of supply of interest to ldCs.

9. it is recognized that the temporary movement of natural persons supplying services (Mode 4) provides potential benefits to the sending and recipient Members. ldCs have indicated that this is one of the most important means of supplying services internationally. Members shall to the extent possible, and consistently with article XiX of the gaTS, consider undertaking commitments to provide access in mode 4, taking into account all categories of natural persons identified by ldCs in their requests.

10. ldCs shall be granted appropriate credit for their autonomous trade liberalization. in addition, Members shall refrain from requesting credits from ldCs.

11. in developing any multilateral rules and disciplines, including under gaTS articles Vi:4 (domestic regulation), X (emergency safeguard measures), Xiii

WTo BiSd 2003 319


(government procurement) and XV (Subsidies), Members shall take into account the specific interests and difficulties of ldCs.

iii. PrinCiPleS For THe ProViSion oF TeCHniCal aSSiSTanCe WiTH regard To Trade in SerViCeS

12. Targeted and coordinated technical assistance and capacity building programmes shall continue to be provided to ldCs in order to strengthen their domestic services capacity, build institutional and human capacity, and enable them to undertake appropriate regulatory reforms. in pursuance of Paragraph 14 of the guidelines and Procedures for the negotiations on Trade in Services (S/l/93), technical assistance shall also be provided to ldCs to carry out national assessments of trade in services in overall terms and on a sectoral basis with reference to the objectives of the gaTS and article iV in particular.

iV. MeCHaniSMS and ProCedUreS

13. The Special Session of the Council for Trade in Services shall review, as necessary, the implementation of these modalities under the standing item on “review of Progress in the negotiations”.

14. in his report to the Trade negotiations Committee, the Chairman of the Special Session of the Council for Trade in Services will include the issues raised by Members with regard to these modalities.

320 WTo BiSd 2003


DECISIONS AND REPORTS NOT INCLUDED

General CouncilAnnual report (2003) WT/GC/76Report (2003) on China’s Transitional Review WT/GC/75

Dispute Settlement Body Annual report (2003) WT/DSB/35 and Add.1

Trade Policy Review BodyAnnual report (2003) WT/TPR/140Overview of Developments in the International TradingEnvironment - Annual Report by the Director General WT/TPR/OV/9

ReviewsBulgaria WT/TPR/M/121 and Add.1Burundi WT/TPR/M/113 and Add.1Canada WT/TPR/M/112 and Add.1-2Chile WT/TPR/M/124 and Add.1El Salvador WT/TPR/M/111 and Add.1Guyana WT/TPR/M/122 and Add.1-2Honduras WT/TPR/M/120 and Add.1Indonesia WT/TPR/M/117 and Add.1Maldives WT/TPR/M/110 and Add.1Morocco, Kingdom of WT/TPR/M/116 and Add.1New Zealand WT/TPR/M/115 and Add.1Niger WT/TPR/M/118 and Add.1Senegal WT/TPR/M/119 and Add.1Southern African Customs Union (SACU) WT/TPR/M/114 and Add.1Thailand WT/TPR/M/123 and Add.1Turkey WT/TPR/M/125 and Add.1-3

Council for Trade in Goods Annual report (2003) G/L/665Work Programme on Electronic Commerce – Report to the General Council G/L/635

Report of the Council for Trade in Goods on China’s Transitional Review G/L/664

321WTo BiSd 2003


Committee on AgricultureAnnual report (2003) G/L/662WTO List of Net Food-Importing Developing Countries for the Purposes of the Marrakesh Ministerial Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least-Developed and Net Food-Importing Developing Countries (“the Decision”) G/AG/5/Rev.6Committee on Agriculture (regular meetings) Implementation- Related Issues – Report to the General Council G/AG/16Report to the Council for Trade in Goods on China’s Transitional Review G/AG/18Implementation of the Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least- Developed and Net Food-Importing Developing Countries – Note by the Secretariat G/AG/W/42/Rev.6Members’ participation in the Normal Growth of World Trade in Agriculture Products – Note by the Secretariat G/AG/W/32/Rev.6

Committee on Anti-Dumping PracticesAnnual report (2003) G/L/653Chairman’s Report to the Council for Trade in Goods on Transitional Review of China G/ADP/12

Committee on Customs ValuationAnnual report (2003) G/L/654Report to the Council for Trade in Goods on China’s Transitional Review G/VAL/56

Committee on Import LicensingAnnual report (2003) G/L/652Report to the Council for Trade in Goods on China’s Transitional Review G/LIC/11

Committee on Market AccessAnnual report (2003) G/L/658Report to the Council for Trade in Goods on China’s Transitional Review G/MA/150

Committee on Rules of OriginAnnual report (2003) G/L/656Report to the Council for Trade in Goods on China’s Transitional Review G/RO/56

322 WTo BiSd 2003


Committee on SafeguardsAnnual report (2003) G/L/651Chairman’s Report to the Council for Trade in Goods on Transitional Review of China G/SG/66

Committee on Sanitary and Phytosanitary MeasuresAnnual report (2003) G/L/661Specific Trade Concerns – Note by the Secretariat G/SPS/GEN/204/Rev.3Decision on the Implementation of Article 4 of the SPS Agreement – Adopted by the Committee on 25 June 200 G/SPS/19/Add.2Decision to Modify and Extend the Provisional Procedure to Monitor the Process of International harmonization – Adopted by the Committee on 25 June 2003 G/SPS/25Special and Differential Treatment Proposals – Schedule of Work – Adopted by the Committee on 25 June 2003 G/SPS/26Procedure to Monitor the Process of International Harmonization – Fifth Report G/SPS/28 and Corr.1Implementation and Special and Differential Treatment – Report by the Chairman to the General Council G/SPS/27 and Corr.1, 30Report to the Council for Trade in Goods on China’s Transitional Review G/SPS/29

Committee on Subsidies and Countervailing MeasuresAnnual report (2003) G/L/655 and Corr.1Calculation Pursuant to SCM Article 27.6(b) on the Basis of a Request from the United States Relating to Textile and Apparel Exports from India G/SCM/103 and Add.1 and 2Note by the Secretariat, Annex VII(b) of the Agreement on Subsidies and Countervailing Measures, Updating GNP per capita for Members Listed in Annex VII(b) as Foreseen in Paragraph 10.1 of the Doha Ministerial Decision and in Accordance with the Methodology in G/SCM/38 G/SCM/110Chairman’s Report to the Council for Trade in Goods on Transitional Review of China G/SCM/111Procedures for Review of 2003 New and Full Subsidy Notifications G/SCM/W/524 G/SCM/M/46, item 5Revised Subsidy Notification Format - Adopted by the SCM Committee at its 28 October 2003 Regular Meeting G/SCM/6/Rev.1

323WTo BiSd 2003


Committee on Technical Barriers to TradeAnnual report (2003) G/L/657Eighth Annual Review of the Implementation and Operation of the TBT Agreement G/TBT/12 and Corr.1Second Annual Transitional Review Mandated in Paragraph 18 of the Protocol of Accession of the People’s Republic of China – Report 2003 G/TBT/W/236

Committee on Trade-Related Investment MeasuresAnnual report (2003) G/L/634, 649Report by the Chairman on Consideration of Proposals on S&D Treatment Provisions G/L/638Transitional Review Mechanism Pursuant to Paragraph 18 of the Protocol of Accession of the People’s Republic of China to the World Trade Organization – Report of the Chairman G/L/648

Textiles Monitoring BodyAnnual report (2003) G/L/650

Working Party on State Trading EnterprisesAnnual report (2003) G/L/660

Bodies established under the auspices of the Council for Trade in Goods

Committee of Participants on the Expansion of Trade in Information Technology ProductsAnnual report (2003) G/L/659

Committee on Balance-of-Payments Restrictions Annual report (2003) WT/BOP/R/70, 72Transitional Review Mechanism Pursuant to Paragraph 18 of the Protocol of Accession of the People’s Republic of China to the World Trade Organization – Report of the Chairperson to the General Council WT/BOP/R/73

Committee on Budget, Finance and AdministrationAnnual report (2003) WT/BFA/66, 69Reports WT/BFA/64,65,67,68

Committee on Regional Trade AgreementsAnnual report (2003) WT/REG/13

324 WTo BiSd 2003


Committee on Trade and DevelopmentAnnual report (2003) of the Committee on Trade and Development, Committee on Trade and Development in Dedicated Session, and the Sub-Committee on Least-Developed Countries WT/COMTD/48Report of the Committee on Trade and Development to the General Council WT/COMTD/46Work on Electronic Commerce in the Committee on Trade and Development since the Doha Ministerial Conference WT/COMTD/47Report of The Committee on Trade and Development in Dedicated Session to the General Council WT/COMTD/SE/1

Committee on Trade and EnvironmentAnnual report (2003) WT/CTE/10Report of the Committee on Trade and Environment to the General Council WT/CTE/9

Council for Trade in ServicesAnnual report (2003) S/C/19Transitional Review under Section 18 of the Protocol on the Accession of the People’s Republic of China – Report to the General Council S/C/20Implementation of Specific Commitments in Telecommunications Services - Request for a Waiver - Communication From Albania S/L/148United States – Measures Affecting the Cross-Border Supply of Gambling and Betting Services - Request for Consultations by Antigua and Barbuda S/L/110 and Add.1

Committee on Specific CommitmentsAnnual report (2003) S/CSC/9

Committee on Trade in Financial Services Annual report (2003) S/FIN/9Transitional Review under Section 18 of the Protocol on the Accession of the People’s Republic of China – Report to the Council for Trade in Services S/FIN/11

Working Party on GATS RulesAnnual report (2003) S/WPGR/13

Working Party on Domestic RegulationAnnual report (2003) S/WPDR/6

325WTo BiSd 2003


Council for Trade-Related Aspects of Intellectual Property RightsAnnual report (2003) IP/C/30Work Programme on Electronic Commerce – Report to the General Council IP/C/29Transitional Review under Section 18 of the Protocol on the Accession of the People’s Republic of China – Report to the General Council IP/C/31

Working Group on the Relationship between Trade and InvestmentReport to the General Council WT/WGTI/7

Working Group on the Interaction between Trade and Competition PolicyAnnual report (2003) WT/WGTCP/7

Working Group on Transparency in Government ProcurementAnnual report (2003) WT/WGTGP/7

Working Group on Trade, Debt and Finance Report to the General Council WT/WGTDF/2

Working Group on Trade and Transfer of TechnologyAnnual report (2003) WT/WGTTT/5

Trade Negotiations CommitteeReport by the Chairman of the TNC to the General Council TN/C/3Minutes (2003) TN/M/6-11

Dispute Settlement Body in Special SessionReports by the Chairman to the Trade Negotiations Committee TN/DS/6-9

Council for Trade in Services in Special SessionReports by the Chairman to the Trade Negotiations Committee TN/S/5, 7, 9-11, 14

Council for Trade-Related Aspects of Intellectual Property Rights in Special SessionReports by the Chairman to the Trade Negotiations Committee TN/IP/5-8

Committee on Agriculture in Special SessionReports by the Chairman to the Trade Negotiations Committee TN/AG/7-10, 12

326 WTo BiSd 2003


Committee on Trade and Development in Special SessionReport to the General Council TN/CTD/7Reports by the Chairman to the Trade Negotiations Committee TN/CTD/6, 8

Committee on Trade and Environment in Special SessionReports by the Chairperson to the Trade Negotiations Committee TN/TE/5-7, and 7/Suppl.1

Negotiating Group on Market AccessReports by the Chairman to the Trade Negotiations Committee TN/MA/8, 10-12

Negotiating Group on RulesReports by the Chairman to the Trade Negotiations Committee TN/RL/4 and Corr.1 and Suppl.1 TN/RL/5, TN/RL/6 and Corr.1 Report by the Chairman to the General Council TN/RL/7

Appellate BodyAnnual report (2003) WT/AB/1

Selected DocumentsCoherence in Global Economic Policy-Making: WTO Cooperation with the IMF and the World Bank – Report (2003) by the Director-General WT/TF/COH/S/8

Committees and Councils under the Plurilateral Trade Agreements

Committee on Government ProcurementAnnual report (2003) GPA/75

Committee on Trade in Civil AircraftAnnual report (2003) WT/L/544 and Corr.1

327WTo BiSd 2003

index

index

PageAccessionAlbania 2000/17,113Armenia 2002/9,110,111Bulgaria 1996/50,95Cambodia 2003/11,109Congo, Republic of the Extension of Time-Limit for Acceptance 1997/7Croatia 2000/113,213Ecuador 1995/15,56Estonia 1999/13,70Former Yugoslav Republic of Macedonia 2002/112,255Georgia 1999/71,141 Extension of Time-Limit for Acceptance 2000/213Grenada

See General Council - Finalization of Negotiations on Schedules on Goods and Services

Jordan 1999/142,230Kyrgyz Republic 1998/17,96Latvia 1998/97,149Least-Developed Countries See General CouncilLithuania 2000/214,330Mongolia 1996/97,120Nepal 2003/110/201Oman 2000/330,394Panama 1996/121 Extension of Time-Limit for Acceptance 1997/7Papua New Guinea

See also General Council - Finalization of Negotiations on Schedules on Goods and Services

Extension of Time-Limit for Acceptance 1996/159,160People’s Republic of China 2001/153,252Qatar

See General Council - Finalization of Negotiations on Schedules on Goods and Services

Republic of Moldova 2001/253,353Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 2001/354,442

328 WTo BiSd 2003

index

St Kitts and NevisSee General Council - Finalization of

Negotiations on Schedules on Goods and ServicesUnited Arab Emirates 1996/18,160Protocols of Accession

Albania 2000/3Armenia 2002/3Bulgaria 1996/13Cambodia 2003/5Croatia 2000/4Ecuador 1995/4Estonia 1999/5Former Yugoslav Republic of Macedonia 2002/5Georgia 1999/7Grenada 1995/6Jordan 1999/10Kyrgyz Republic 1998/5Latvia 1998/7Lithuania 2000/8Mongolia 1996/14Nepal 2003/7Oman 2000/6Panama 1996/16Papua New Guinea 1995/7People’s Republic of China 2001/5Qatar 1995/9Republic of Armenia 2002/3Republic of Moldova 2001/115Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 2001/117St Kitts and Nevis 1995/11United Arab Emirates 1996/18

Administrative MattersConditions of service applicable to the staff of the WTO Secretariat 1997/40, 1998/156Rules of Procedures of the Management Board of the WTO Pension Plan 2001/453WTO Secretariat and senior management structure 1997/39

Agreements with the Swiss AuthoritiesAgreement between the WTO and the Swiss Confederation 1995/59Headquarters Agreement 1995/59

329WTo BiSd 2003

index

AgricultureSee Committee on Agriculture and also General Council

Anti-DumpingSee Committee on Anti-Dumping Practices

Appellate Body�

Amendments to the Working Procedures for Appellate Review 2002/256Composition 1995/111Establishment 1995/107Working procedures for Appellate Review 1996/162, 1997/9, 2003/202

Appointment of Officers to WTO bodiesGuidelines 1995/95

Balance-of-Payments RestrictionsSee Committee on Balance-of-Payments Restrictions and also

General Council

Budget, Finance and AdministrationSee Committee on Budget, Finance and Administration

and also General Council

Civil AircraftSee under Plurilateral Trade Agreements

Committee of Participants on the Expansion of Trade in Information Technology ProductsRules of procedures for meetings of the Committee 1997/181Non-Tariff Measures Work Programme 2000/460

Committee on AgricultureMarrakesh Ministerial Decision on Measures Concerning the

Possible Negative Effects of the Reform Programme on Least -Developed and Net Food-Importing Developing Countries

Preparatory Work Programme 1995/117Reports 1996/264WTO Lists of NFIDCs 1995/118, 1996/262

Notification Requirements and Formats 1995/121Organization of work and working procedures 1995/118

1 WTO panels and Appellate Body reports, as well as arbitration awards, can be found in the Dispute Settlement Reports DSR series co-published by the WTO and Cambridge University Press.

330 WTo BiSd 2003

index

Rules of Procedure 1996/261Report 1996 1996/269Terms of reference - see General Council

Committee on Anti-Dumping PracticesMinimum Information to be Provided under Article 16.4 of the

Anti-Dumping Agreement 1995/150Recommendation Concerning Indicative List of Elements Relevant to a Decision on a Request for Extension of Time to Provide Information 2001/469Recommendation Concerning the Periods of Data Collection for Anti-Dumping Investigations 2000/423Recommendation Concerning the Time-Period to be Considered in Making a Determination of Negligible Import Volumes for Purposes of Article 5.8 of the Agreement 2002/280Recommendation Concerning the Timing of the Notifications under Article 5.5 1998/184Recommendation Regarding Annual Review of the Anti-Dumping Agreement 2002/279Rules of Procedure 1996/274Semi-Annual Reports - Guidelines 1995/145

Committee on Balance-of-Payments RestrictionsRules of procedure 1996/410Terms of reference - see General Council

Committee on Budget, Finance and AdministrationFinancial Arrangements for the scales of contributions to the budget

Abstract of report of 1995 1995/191Abstract of report of 1996 1996/411Abstract of report of 1997 1997/184Abstract of report of 1998 1998/159Abstract of report of 1999 1999/325Abstract of report of 2000 2000/462 Abstract of report of 2001 2001/480

Abstract of report of 2002 2002/291 Abstract of report of 2003 2003/281Terms of reference - see General Council

Committee on Customs ValuationDecisions on extensions of delay periods as well as on minimum values according to paragraphs 1 and 2, Annex III of the Agreement

331WTo BiSd 2003

index

on Implementation of Article VII of the GATT 2000/425, 2001/471, 2002/281, 2003/250Rules of Procedure 1996/282

Committee on Import LicensingRules of Procedure 1996/284

Committee on Market AccessConsolidated Tariff Schedules Database 1999/267Consolidated Tariff Schedules Database Project: Formats for Specific Commitments in Agriculture 2000/427Dissemination of the Integrated Database 1999/254Review of paragraph 1 of the Understanding on the Interpretation of Article XXVIII of GATT 1994 2000/442Rules of Procedure 1996/286Statement by the Chairman of the Committee relating to the Consolidated Tariff Schedules Database 1999/315Terms of reference - see General Council

Committee on Regional Trade AgreementsRules of Procedure 1996/416

Committee on Rules of OriginNotification Procedures 1995/151Rules of Procedure 1996/288

Committee on SafeguardsFormats for Certain Notifications under the Agreement on

Safeguards 1996/297Information to be Notified to the Committee Where a Safeguard

Investigation is Terminated with no Safeguard Measure Imposed 1996/301Notifications

Article 11.2 of the Agreement on Safeguard MeasuresException under Article11.2 1995/155

Article 12.1(a) of the Agreement on Safeguards on initiation of an investigation and the reasons for it 1995/157

Article 12.7 of the Agreement on Safeguards of Measures subject to the prohibition and elimination of certain measures under Article 11.1 of Agreement on Safeguards 1995/154

Laws, Regulations and Administrative Procedures Relating to Safeguard Measures 1995/152

Pre-existing Article XIX of GATT 1994 Measures 1995/153Rules of Procedure 1996/290

332 WTo BiSd 2003

index

Committee on Sanitary and Phytosanitary MeasuresAgreement between the WTO and the Office International des Épizooties 1997/53Decision on the Implementation of Article 4 of the Agreement on the Application of Sanitary and Phytosanitary Measures 2001/472,2002/282Equivalence – Programme for Further Work 2002/283Guidelines to further the practical implementation of Article 5.5 2000/443Procedure to monitor the process of international harmonization 1997/50, 2002/286

Committee on Specific CommitmentsTerms of Reference

See under Council for Trade in Services - Specific Commitments

Committee on Subsidies and Countervailing MeasuresDecisions relating to extensions under the SCM Article 27.4 of the transition period under the SCM Article 27.2(B) for the elimination of export subsidies, including decisions pursuant to the procedures in G/SCM/39 or pursuant to paragraph 10.6 of the Ministerial Decision on Implementation-Related Issues and Concerns 2002/288, 2003/251 Format for notifications under Article 8.3 of the Agreement 1998/185Format for notifications under Article 27.11 of the Agreement 1998/191Format for notifications under Article 27.13 of the Agreement 1998/190Format for updates of notifications under Article 8.3 of the Agreement 1997/59Minimum information to be provided under

Article 25.11 of the Agreement 1995/163Permanent Group of Experts - Election 1995/164, 1996/310Procedures for arbitration under Article 8.5 of the Agreement 1998/191Procedures for extensions under Article 27.4 for certain Developing country Members 2001/476Questionnaire format for subsidy notification under

Article 25 of the Agreement 1995/166Report by the Informal Group of Experts to the Committee 1998/198Rules of Procedure 1996/303Semi-Annual Reports - Guidelines 1995/159Supplemental Report of the Informal Group of Experts on Calculation Issues Related to Annex IV of the Agreement 1999/316

333WTo BiSd 2003

index

Committee on Technical Barriers to TradeDecisions and recommendations on notification procedures for draft technical regulations and conformity assessment procedures 2000/451Decision of the Committee on principles for the development of international standards, guides and recommendations in relation to Articles 2 and 5 and Annex 3 of the Agreement 2000/455Decisions and recommendations on procedures for information exchange 2000/455Rules of Procedure 1996/311Third Triennial Review of the Operation and Implementation of the Agreement on Technical Barriers to Trade 2003/253

Committee on Trade and DevelopmentImplementation modalities to be observed by the Secretariat in its administration of technical cooperation activities 1997/189Report of the High-Level Meeting on Integrated Initiatives for Least-Developed Countries’ Trade Development 1997/194Rules of Procedure 1996/418Terms of reference - see General CouncilWTO Technical Co-operation - Guidelines 1996/420Sub-Committee on Least-Developed Countries

See also Ministerial ConferencesEstablishment of the Sub-Committee 1995/195 Pilot Scheme for an Integrated Framework 2001/485Work Programme for the Least-Developed Countries 2002/295

Committee on Trade and EnvironmentEstablishment of the Committee - See General Council Report of the 5th Session of the WTO Ministerial Conference in Cancún – Paragraphs 32 and 33 of the Doha Ministerial Declaration 2003/286

Committee on Trade-Related Investment MeasuresNotifications

Article 5.5 of the TRIMS Agreement 1995/168 Article 6.2 of the TRIMS Agreement 1996/322

Report 1996 1996/323Rules of Procedure 1996/321

ConciliationSee under Appellate Body as well as Dispute Settlement Body

334 WTo BiSd 2003

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Council for Trade in GoodsAd-personam status of TMB Members 1997/44Decision on extensions of the transition period for the elimination of trade-related investment measures notified under Article 5.1 of the Agreement on Trade-Related Investment Measures 2001/469Establishment of a Loose-Leaf Schedule 1996/257Harmonized Commodity Description and Coding System

Geneva (1995) Protocol to GATT 1994 1995/3Illustrative List of Relationships between Governments and State-Trading Enterprises 1999/248Implementation of the Ministerial Declaration on Trade in Information Technology Products 1997/44Major Review of the Agreement on Textiles and Cloting in the First Stage of the Integration Process 1998/163Notifications Procedures for Quantitative Restrictions 1995/114Questionnaire on State Trading 1998/177Reverse Notification of Non-Tariff Measures 1995/116 Rules of Procedure 1996/255

Council for Trade in ServicesSee also Uruguay Round - Documents relevant to the

application of certain provisions of the General Agreement on Trade in Services

Basic Telecommunications 1996/397Certification – Schedule of Specific Commitments in Basic Telecommunications of Brazil – Communication from Brazil 2001/535Certification – Schedule of Specific Commitments in Basic Telecommunications of Brazil – Notification of objection from the European Communities and their Member States 2001/533Certification – Schedule of Specific Commitments in Basic Telecommunications of Brazil – Notification of objection from Hong Kong, China 2001/532Certification – Schedule of Specific Commitments in Basic Telecommunications of Brazil – Notification of objection from Japan 2001/534Certification – Schedule of Specific Commitments in Basic Telecommunications of Brazil – Notification of objection from the United States 2001/532Certification – Schedule of Specific Commitments in Basic Telecommunications of Egypt – Notification of objection from the European Communities and the Member States 2001/535Certification – Schedule of Specific Commitments in Basic

335WTo BiSd 2003

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Telecommunications of Egypt – Notification of objection from the United States 2001/536Commitments 1996/395Communication from Members which have accepted the Fifth Protocol to the GATS 1999/330Decision on Acceptance of the Fifth Protocol to the GATS 1999/330Decision on Disciplines Relating to the Accountancy Sector 1998/246Decision on Domestic Regulation 1999/331Decision on Procedures for the Certification of Terminations, Reduction and Rectifications of Article II(MFN) Exemptions 2002/304Decision on Procedures for the Implementation of Article XXI of the GATS 1999/333Disciplines on Domestic Regulation in the Accountancy Sector 1998/246Dispute Settlement Procedures 1995/170Enquiry and Contact Points

See under NotificationsEnvironment 1995/171Financial Services

Application of the Second Annex 1995/175Commitments 1995/176, 1997/216Decision on Negotiations 1997/214Second Decision on Financial Services 1995/177Second Protocol to GATS

See under Council for Trade in Services - Protocols to GATSFourth Decision on Negotiations on Emergency Safeguard Measures 2002/305Guidelines and Procedures for the Negotiations on Trade in Services 2001/529Guidelines for Mutual Recognition Agreements or Arrangements in the Accountancy Sector 1997/206Guidelines for the Scheduling of Specific Commitments under the GATS 2001/490Institutional Arrangements 1995/169 Issues relating to the scope of the GATS 1995/179Maritime Transport Services - Decision 1996/396Movement of Natural Persons

Decision 1995/176Decision on Movement of Natural Persons Commitments 1995/177Third Protocol to GATS

See under Council for Trade in Services - Protocols to GATSNegotiations on Emergency Safeguards Measures 1997/214 Third Decision 2000/468Notifications

Establishment of Enquiry and Contact Points 1996/396Guidelines 1995/172

336 WTo BiSd 2003

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Procedures for the Certification of Rectifications or Improvements to Schedules of Specific Commitments 2000/469Procedures for the Certification of Terminations, Reduction and Rectifications of Article II (MFN) Exemptions 2002/303Procedures for the Implementation of Article XXI of the GATS - Modification of Schedules 1999/334 Professional Services 1995/170 Protocols to the General Agreement on Trade in Services Fifth Protocol to the GATS Acceptance-Decision 1999/333 Adoption-Decision 1997/215, 1998/9 Procès-verbal of rectification 1998/10 Fourth Protocol to the GATS Acceptance-Decision 1997/217 Notification of Acceptance – Commonwealth of Dominica 2000/10 Protocol 1997/4 Second Protocol to the GATS (Financial Services)

Acceptance - Decision 1996/397Decision 1995/178 Protocol 1995/13

Third Protocol to the GATS (Movement of Natural Persons)Acceptance - Decision 1996/397Protocol 1995/14

Rules of Procedure 1996/394Second Decision of the Acceptance of the Fifth Protocol 2000/467Second Decision of the Acceptance of the Second, Third and Fourth Protocols 1998/245Second Decision on Negotiations on Emergency Safeguards Measures 1999/332Specific Commitments

Terms of Reference for the Committee on Specific Commitments 1995/178Third Decision on the Acceptance of the Fifth Protocol 2000/468Third Decision on the Acceptance of the Fourth Protocol 2000/467Turkey – Certain import procedures for fresh fruit – Request for Consultations by Ecuador 2001/537

Council for Trade in Services in Special SessionModalities for the Special Treatment for Least-developed Country Members in the Negotiations on Trade in Services 2003/317Modalities for the Treatment of Autonomous Liberalization 2003/314

337WTo BiSd 2003

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Council for Trade-Related Aspects of Intellectual Property RightsCalculation of renewable periods of ten years under the provisions of the appendix to the Berne Convention as incorporated by reference into the TRIPS Agreement 1998/251 Enforcement - Check-list 1995/186Extension of the Transition Period under Article 66.1 of the TRIPS Agreement for Least-Developed Country Members for Certain Obligations with Respect to Pharmaceutical Products 2002/306 Implementation

Obligations relating to Article 6ter of the Paris Convention (1967) 1995/190 Article 66.2 of the TRIPS Agreement 2003/310Notifications

Laws and Regulations Relating to Articles 3, 4 and 5 of the TRIPS Agreement 1997/218 Procedures under Article 63.2 of the TRIPS Agreement 1995/183,185Priority rights and the application of Article 6ter of the Paris Convention as incorporated into the TRIPS Agreement 1997/220Report 1996 1996/401Rules of Procedure 1996/399

Countervailing MeasuresSee Committee on Subsidies and Countervailing Measures

Customs ValuationSee Committee on Customs Valuation

DairySee Plurilateral Trade Agreements

Decision-Making Procedures under Articles IX and XII of the WTO AgreementSee General Council

DevelopmentSee Committee on Trade and Development

Dispute Settlement Body�

See also Appellate BodyAdditional Procedures for Consultations between the Chairperson

2 WTO panels and Appellate Body reports, as well as arbitration awards, can be found in the Dispute Settlement Reports DSR series co-published by the WTO and Cambridge University Press.

338 WTo BiSd 2003

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of the DSB and WTO Members in Relation to Amendments to the Working Procedures for Appellate Review 2002/278 Adoption of the Agenda 1999/235Amendment to Rule 5(2) of the Working Procedures 2001/468Amicus Curiae Briefs and Article 17.9 of the DSU 2000/417Appointment of Appellate Body Members 1999/242, 2001/457, 2003/242Appointment of Appellate Body Members – Group System 2000/419 Article 5 of the Dispute Settlement Understanding – Good offices, Conciliation and mediation 2001/462Competence to review the legal validity of a request to authorize the suspension of concessions or other obligations 1999/236Extension for the application of the Rules of Conduct 1999/238Modification of the time-period for compliance in relation to the case on “United States – Tax treatment for ‘Foreign Sales Corporations’” 2000/419Proposed amendments to the Working Procedures for Appellate Review 2003/238Relationship between Articles 21.5 and 22 of the DSU 1999/237Remuneration of Appellate Body Members 2001/459Review of the Dispute Settlement Understanding 1999/240Rules of Conduct 1996/243Rules of Procedure 1996/242Terms of Office of Appellate Body Members 1997/42Third-party participation in GATT Article XXII consultations in relation to the case on “United States – Section 306 of the Trade Act of 1974 and amendments thereto” 2000/421Time-periods for appeal expiring in the month of August 1999/239Timing of notification of third-party interest in panel proceedings 2001/461

EnvironmentSee Committee on Trade and Environment

Establishment of the WTOTransfer of Assets, Liabilities, Records, Staff and Functions from the Interim Commission for the International Trade Organization and the GATT to the World Trade Organization 1995/57

General CouncilSee under Uruguay Round - Preparatory Committee for the

World Trade Organization - Report to the WTOSee also Relations with International Intergovernmental Organizations,

Relations with Non-Governmental Organizations

339WTo BiSd 2003

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Accession of Least-Developed Countries 2002/265Accreditation of permanent representatives to the WTO 2000/404Agreement on the transfer of pension rights of participants in the WTO Pension Plan 2000/414Amicus Curiae Briefs 2000/402Annual Overview of WTO Activities 1995/99Appointment of Chairman of the TMB 2000/413Appointment of Officers - Guidelines 1995/95Appointment of the next Director-General 1999/234Committee on Trade and Environment

Establishment 1995/90Committee on Regional Trade Agreement

Establishment 1996/183Terms of Reference 1996/183

Decision-Making Procedures under Articles IX and XII of the WTO Agreement 1995/90

Extension of the Deadline for the Review of the Dispute Settlement Understanding 1998/153Finalization of Negotiations on Schedules on Goods and Services

Decision 1995/91 Grenada 1995/92 Papua New Guinea 1995/93 Qatar 1995/94 St Kitts and Nevis 1995/95

Follow-up of the Cancún Ministerial Conference – Report by the Chairman and the Director-General 2003/236Guidelines for Appointment of Officers to WTO Bodies 2002/270Implementation of Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health 2003/229Implementation-Related Issues and Concerns 2000/398Implementation review mechanism 2000/396Negotiations on agriculture and services 2000/395Negotiations on improvements and clarification of the DSU – Extension of time frame 2003/235Observership at the Fourth Session of the Ministerial Conference 2001/443Participation of Acceding Countries as Observers in the Mandated Negotiations on Agriculture, on Services and on Other Elements of the Build-in Agenda 2000/401Procedures for the circulation and derestriction of WTO documents 1996/237, 2002/268Procedure for the Introduction of the Harmonized System 2002 Changes to Schedules of Concessions 2001/445

340 WTo BiSd 2003

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Review of the Dispute Settlement Understanding 1999/231Rules of Procedure for Sessions of the Ministerial Conference

and Meetings of the General Council 1996/219Supply of Information to the Integrated Data Base for Personal Computers 1997/37Termination of the Decision of the Contracting Parties to the GATT 1947 Relating to Import Licensing Procedures 1998/155Terms of Reference of Subsidiary Bodies - Decisions

Committee on Agriculture 1995/101Committee on Balance-of-Payments Restrictions 1995/101Committee on Budget, Finance and Administration 1995/102Committee on Market Access 1995/103Committee on Trade and Development 1995/104

Textiles Monitoring Body - Composition 1995/105, 1997/37TRIMs transition period issues 2000/397Work of the Working Group on the Interaction between Trade and Competition Policy 1998/154Work of the Working Group on the Interaction between Trade and Investment 1998/154Work Programme on Electronic Commerce 1998/151Work Programme on Small Economies 2002/276Working Party on Preshipment Inspection See under Preshipment Inspection

GoodsSee Council for Trade in Goods

Government ProcurementSee Plurilateral Trade Agreements

Harmonized Commodity Description and Coding SystemSee under Council for Trade in Goods and also Waivers

Import LicensingSee Committee on Import Licensing

Information Technology ProductsSee Ministerial Conferences - First Session - Singapore

Intellectual PropertySee Council for Trade-Related Aspects of Intellectual Property Rights

International Dairy CouncilSee Plurilateral Trade Agreements

341WTo BiSd 2003

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International Meat CouncilSee Plurilateral Trade Agreements

InvestmentSee Committee on Trade-Related Investment Measures

Least-Developed CountriesSee under Committee on Trade and Development and also under Ministerial Conferences

Legal InstrumentsCertifications of Modifications and Rectifications of Schedules

of Concessions to GATT 1994 1996/20, 1997/5, 1998/11, 1999/12, 2000/11, 2001/124, 2002/6, 2003/9Certifications of Modifications and Rectifications to Appendices I-IV of the Agreement on Government Procurement (1994) 2000/14, 2001/127, 2002/6, 2003/9Harmonized Commodity Description and Coding System

See under Council for Trade in GoodsMarrakesh Agreement Establishing the WTO Marrakesh Protocol to GATT 1994 1996/9Notification of acceptance – Agreement on Trade in Civil Aircraft – Georgia 2000/13Procès-Verbal - Marrakesh Protocol to the GATT 1994 1996/7Procès-Verbal of Rectification 1996/3Procès-Verbal of Rectification - Agreement on Implementation of Article VII of the GATT 1997/3 Procès-Verbal of Rectification – Agreement on Subsidies and Countervailing Measures 2001/122Procès-Verbal of Rectification – Agreement on Subsidies and Countervailing Measures – Annex VII – Honduras 2000/12Procès-Verbal of Rectification - Agreement on Textiles and Clothing 1996/4Procès-Verbal of Rectification of Certified Copies 1996/5Procès-Verbal of Rectification relating to the Protocol of Accession of Georgia 1999/9Procès-Verbal of Rectification - Trade in Pharmaceutical Products 1996/12Procès-Verbal Relating to GATS 1996/10Protocol (2001) Amending the Annex to the Agreement on Trade In Civil Aircraft 2001/125Protocols of Accession

See Accessions - Protocols of AccessionProtocols to the GATS

See under Council for Trade in Services

342 WTo BiSd 2003

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Market AccessSee Committee on Market Access and also General Council

Members1995 1995/xv1996 1996/xv1997 1997/xiii1998 1998/xi1999 1999/xi2000 2000/xi2001 2001/xi2002 2002/xi2003 2003/xi

Ministerial ConferencesFirst Session - SingaporeComprehensive and Integrated WTO Plan of Action for the

Least-Developed Countries 1996/32Ministerial Declaration on Trade in Information Technology

Products 1996/35Singapore Ministerial Declaration 1996/23

Second Session - GenevaDeclaration on Electronic Commerce 1998/16Geneva Ministerial Declaration 1998/13

Fourth Session – DohaDeclaration on the TRIPS Agreement and Public Health 2001/141Implementation-related issues and concerns 2001/142Doha Ministerial Declaration 2001/128

Fifth Session – CancúnMinisterial Statement 2003/10

Modifications and RectificationsSee Legal Instruments - Certifications on Modifications and Rectifications

Notification Obligations and ProceduresSee also under each WTO bodyWorking Group on Notification Obligations and Procedures - Report 1996/334

343WTo BiSd 2003

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Officers of WTO Bodies1995 1995/11996 1996/21997 1997/11998 1998/11999 1999/22000 2000/12001 2001/22002 2002/12003 2003/2

Panels�

See footnote

Plurilateral Trade AgreementsCommittee on Government Procurement

AccessionsAccession to the Agreement on Government

Procurement (1994) 1996/432Accession of - Hong Kong 1996/469- the Kingdom of the Netherlands with respect to Aruba 1996/448- Liechtenstein 1996/452- Singapore 1996/461

Checklist of Issues for Provision of Information Relating to the Accession to the Agreement 2000/473Interim Procedure on the Circulation of Documents 1996/435Interim Procedure on the Derestriction of Documents 1996/435Modalities for Notifying Threshold Figures in National

Currencies 1996/434Participation of Observers in the Committee on Government

Procurement (1994) 1996/432Procedures for the Circulation and Derestriction of Documents of the Committee 2002/309Procedures for the Notification of National Implementing

Legislation 1996/436Report 1996 1996/426Uniform Classification Systems 1996/438

Committee on Trade in Civil AircraftAnnual report (1996) 1996/478

3 WTO panels and Appellate Body reports, as well as arbitration awards, can be found in the Dispute Settlement Reports DSR series co-published by the WTO and Cambridge University Press

344 WTo BiSd 2003

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Interim Committee on Government Procurement Report 1995/202International Dairy Council

Annual report (1996) 1996/480Deletion of the International Dairy Agreement from Annex 4 of the WTO Agreement 1997/36Suspension of the Application of the Annex on certain Mill

Products and the functioning of the Committee on Certain Milk Products 1995/201

Termination of the International Dairy Agreement Decision 1997/223

International Meat CouncilAnnual report (1996) 1996/481Deletion of the International Bovine Meat Agreement from Annex 4 of the WTO Agreement 1997/36 Termination of the International Bovine Meat Agreement Decision 1997/224

Preshipment InspectionReport of the Independent Entity Established under Article 4

of the Agreement on Preshipment Inspection to the Council for Trade in Goods 1996/393

Working Party on Preshipment Inspection - Report on Preshipment Inspection 1997/175

Relations with international intergovernmental organizations Agreement between the World Intellectual Property

Organization and the World Trade Organization 1995/78Agreement between the WTO and the IMF 1996/184Agreement between the WTO and ITU 2000/404Agreement between the WTO and the World Bank 1996/184Relations Between the WTO and the United Nations 1995/82

Relations with non-governmental organizationsGuidelines for Arrangements 1996/240

Rules of OriginSee Committee on Rules of Origin

SafeguardsSee Committee on Safeguards

Scales of contributions to the budgetSee Committee on Budget, Finance and Administration -

345WTo BiSd 2003

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Financial arrangements for the scales of contributions to the budget

ServicesSee Council for Trade in Services and also Uruguay Round

Sub-Committee on Least-Developed CountriesSee under Committee on Trade and Development

Subsidies See Committee on Subsidies and Countervailing Measures

Textiles Monitoring BodyComposition - see General CouncilComprehensive Report on the TMB to the Council for Trade in Goods on Implementation of the Agreement on Textiles and Clothing 1997/68Working Procedures 1996/329

Trade and DevelopmentSee Committee on Trade and Development and also General Council

Trade and EnvironmentSee Committee on Trade and Environment

Trade in GoodsSee Council for Trade in Goods

Trade Negotiations CommitteeStatement by the Chairman of the General Council at the Trade Negotiations Committee Meeting on 1 February 2002 2002/311

Trade Policy Review BodyAppraisal of the Operation of the Trade Policy Review Mechanism - Report to Ministers 1999/243Rules of Procedure 1996/252

Trade in ServicesSee Council for Trade in Services

Trade-Related Aspects of Intellectual Property RightsSee Council for Trade-Related Aspects of Intellectual Property Rights

346 WTo BiSd 2003

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Trade-Related Investment MeasuresSee Committee on Trade-Related Investment Measures

Uruguay Round Documents relevant to the application of certain provisions of

the General Agreement on Trade in ServicesApplicability of GATS to Tax Measures 1995/248Issues relating to the Scope of the GATS 1995/245,248Scheduling of Initial Commitments in Trade in Services 1995/229 Scheduling of Subsidies and Taxes at the Sub-Central Level 1995/254Statement by the Chairman of the Group of

Negotiations on Services 1995/249Status of Branches as Services Suppliers - Article XXXIV

of GATS 1995/243Taxation Issues Relating to Article XIV(d) of GATS 1995/245

Preparatory Committee for the World Trade Organization Report to the WTO 1995/208

WaiversHarmonized Commodity System Description and Coding System

Implementation 1995/199, 1996/423,1997/221, 1998/252, 1999/339, 2000/471, 2001/538, 2002/307, 2003/312

Introduction of Harmonized System 1996 Changes into WTO Schedules of Tariff Concessions 1995/200, 1996/423, 1997/222, 1998/252, 1999/339, 2000/471, 2001/538, 2002/307, 2003/312Introduction of Harmonized System Changes into WTO Schedules of Tariff Concessions on 1 January 2002 2002/308Renegotiation of Schedules 1996/423, 1997/221, 1998/252, 1999/339, 2000/471, 2001/538, 2002/307Other waivers:

Canada CARIBCAN - Extension of Time-Limit 1996/423

Cameroon Agreement on Implementation of Article VII 2001/538Colombia Article 5.2 of the Agreement on Trade-Related Investment Measures 2001/539 Côte d’Ivoire Agreement on Implementation of Article VII of GATT 1994 2002/308Cuba

347WTo BiSd 2003

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Article XV:6 of GATT 1994 - Extension of Time-Limit 1996/423, 2001/539

Developing Countries Preferential Tariff Treatment for Least-Developed Countries 1999/340

Dominican Republic Minimum values under the Agreement on Implementation of Article VII of GATT 1994 2001/539 El Salvador Agreement on Implementation of Article VII of GATT 1994 2002/309EC/France – Trading arrangements with Morocco – Extension of waiver 2000/472European Communities

Autonomous preferential treatment to the countries of the Western Balkans 2000/472Fourth ACP-EEC Convention of Lomé - Extension of Time-Limit 1996/423

The ACP-EC Partnership Agreement 2001/539 Transitional Regime for the EC Autonomous Tariff Rate Quotas on Imports of Bananas 2001/539France

Trading Arrangements with Morocco - Extensions of Time-Limit 1996/423, 1997/222- Extension of waiver 1998/253

Haiti Agreement on Implementation of Article VII 2001/539Hungary Agreement on Agriculture 1997/222Kimberley Process Certification Scheme for Rough Diamonds 2003/313Least-Developed Country Members Article 70.9 of the TRIPS Agreement with respect to pharmaceutical products 2002/309Madagascar Agreement on Implementation of Article VII 2001/538Peru Agreement on Implementation of Article VII 1999/340South Africa

Base dates under Article I:4 - Extension of Time-Limit 1996/423

Switzerland Preferences for Albania and Bosnia-Herzegovina 2001/539Thailand Agreement on Trade-Related Investment Measures 2001/539

348 WTo BiSd 2003

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Turkey – Preferential treatment for Bosnia-Herzegovina 2000/472United States

ANDEAN Trade Preference Act - Extension of Time-Limit 1996/423Caribbean Basin Recovery Act - Renewal of Waiver 1995/200Former Trust Territory of the Pacific Islands - Extension of Time-Limit 1996/423Import of Automotive Products - Extension of Time-Limit 1996/423

Uruguay – Minimum Values 2000/472Zimbabwe

Base dates under Article I:4 - Extension of Time-Limit 1996/423

Waivers in force as of 1 January 1995 1995/196Waivers in force as of 1 January 1996 1996/423Waivers in force as of 1 January 1997 1997/221Waivers in force as of 1 January 1998 1998/252Waivers in force as of 1 January 1999 1999/339Waivers in force as of 1 January 2000 2000/471Waivers in force as of 1 January 2001 2001/538Waivers in force as of 1 January 2002 2002/307Waivers in force as of 1 January 2003 2003/312

Working Party on State Trading EnterprisesRecommendation on the Frequency of Notifications 2003/280

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