RESTRICTED
WORLD TRADE WT/ACC/OMN/5
21March 1997
ORGANIZATION(97-1139)
Original: English
ACCESSION OFTHE SULTANATE OFOMAN
Questions andReplies totheMemorandum
ontheForeign Trade Régime
(Document WT/ACC/OMN/2)
Inacommunication dated 22April 1996, circulated asWT/ACC/OMN/1, theGovernment
oftheSultanate ofOman applied foraccession totheWorld Trade Organization (WTO) under the
provisions ofArticle XIIoftheWTO Agreement. Theterms ofreference oftheWorking Party are
reproducedindocumentWT/ACC/OMN/4.IndocumentWT/ACC/OMN/2,Membershadbeeninvited
tosubmit questions inwriting concerning theforeign trade régime oftheSultanate ofOman. The
questions submitted byMembers andthereplies thereto provided bytheGovernment oftheSultanate
ofOman arereproduced hereunder.
Delegations wishing toraiseadditional questions concerning theforeign traderégime ofOman
might inform thedelegation ofOman (with acopy totheSecretariat) ofsuchquestions inadvance
ofthemeeting oftheWorking Party, sothatconsidered replies canbemade available bytheGovernment
oftheSultanate ofOman toMembers atthetimeoftheWorking Party meeting.
_______________WT/ACC/OMN/5
Pageii
TABLE OFCONTENTS
Page
No.Question
No.
I. INTRODUCTION 1 1-2
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions 1 3-15
Price controls 9 16-19
(c) Foreign exchange andpayments system 10 20
(d) Foreign anddomestic investment policies 10 21-31
3. Foreign Trade inGoods andServices 15 32-36
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE IN
SERVICES
1. Powers ofExecutive, Legislative andJudicial Branches of
Government 16 37-49
2. Governmental Entities Responsible forMaking andImplementing
Policies Affecting Foreign Trade 20 50-52
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting 21 53-59
(b) Characteristics ofnational tariff system 23 60-72
(c) Tariff quotas, tariff exemptions 27 73-81
(d) Other duties andcharges 29 82-86
(e) Quantitative import restrictions, including prohibitions, quotas and
licensing systems 31 87-108
(h) Customs valuation 36 109-119
(j) Pre-shipment inspection 39 120
(k) Application ofinternal taxes onimports 40 121-127
(l) Rules oforigin 42 128-133
(m-o) Anti-dumping, countervailing duty, safeguard régime 43 134-136
2. Export Regulation
(a) Registration requirements forengaging inimporting 44 137-140
(b) Customs tariff nomenclature, types ofduties 45 141
(c) Quantitative export restrictions, including prohibitions, quotas and
licensing systems 45 142-147
(f) Export financing, subsidy andpromotion policies 47 148-156
(h) Import dutydrawback scheme 50 157WT/ACC/OMN/5
Pageiii
Page
No.Question
No.
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policies 50 158-172
(b) Technical regulations andstandards, including measures taken at
theborder withrespect toimports (Annex 5) 56 173-198
(c) Sanitary andphytosanitary measures, including measures taken
withrespect toimports 64 199-208
(e) State-trading practices 67 209-217
(f) Freezones 70 218-219
(g) Freeeconomic zones 71 220-221
(l) Government procurement practices, including legalrégime and
procedures fortendering, dealing withtenders andawards of
contracts 71 222-223
Statistics 72 224-226
Management structure 72 227-228
Monitoring authority 73 229
Legal remedies 73 230
Advertising 73 231
Procurement practices 74 232
Criteria forawarding contracts 74 233-235
Offsets 75 236
Discrimination offoreigners 75 237
Information technology 75 238
International involvement 75 239
Legislation 76 240-241
4. Policies Affecting Foreign Trade inAgricultural Products
(b) Exports 76 242
(c) Export prohibitions andrestrictions 76 243-245
(d) Export credits, export credit guarantees orinsurance programmes 77 246
(e) Internal policies 77 247-253
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General 79 254-258
2. Substantive Standards ofProtection
(a) Copyright andrelated rights 80 259-270
(b) Trademarks, including service marks 83 271-285
(c) Geographical indications, including appellations oforigin 86 286-287
(d) Industrial designs 86 288-289
(e) Patents 87 290-304WT/ACC/OMN/5
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Page
No.Question
No.
(f) Protection ofplant varieties 91 305-306
(g) Layout-designs ofintegrated circuits 91 307-308
(h) Requirements onundisclosed information, including trade secrets
andtestdata 92 309-310WT/ACC/OMN/5
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I. INTRODUCTION
Question 1.
Oman should identify those aspects ofitstrade regime thatitrecognizes asnotinconformity
withWTO requirements, andindicate atthefirstWorking Party meeting thespecific steps Oman
istaking toaddress these deficiencies. Please describe steps thathave recently been taken, in
addition totheenactment ofthelawoncopyrights protection law,which were designed tobring
theSultanate ’strade regime intoconformity withWTO rules.
Reply
There aretwoaspects oftheforeign traderegime oftheSultanate ofOman which inouropinion
arenotinconformity withtheWTO rules. These are:customs valuation andtrade-related aspects
ofintellectual property rights.
Thepresent system ofvaluation isnotinconformity withtheprovisions oftheWTO Agreement
onCustoms Valuation. Similarly, theIPRregime oftheSultanate isnotinconformity withthe
provisions oftheTRIPS Agreement. Whereas wehavetheTrademarks Law, theCopyright Law,
andfollow theUnified Patent System oftheGCC, wedonothavelegislation onindustrial designs,
onlayout-designs ofintegrated circuits, andongeographical indications. TheTrademarks Lawand
theCopyright Lawmayinsome respects notbeinfullconformity withtheprovisions oftheTRIPS
Agreement.
Weareconscious ofthese deficiencies butwearecommitted toassuming allobligations under
theWTO Agreement anditsannexes. However, asasmall developing country, itwould beunrealistic
tostatethatOman willbeinfullconformity witheachandevery provision oftheWTO rules well
before joining WTO. Wewould listen attentively tothequestions, comments andobservations ofWTO
member countries onourtrade regime andwewilltakecareful noteforappropriate action.
Having saidthat,wemayflagthattheSultanate ofOman would needtransition period for
bringing some ofourlaws, regulations andprocedures intoconformity withtheWTO requirements.
Question 2.
Please describe thespecific further modifications, either under wayorplanned forthenearfuture,
which aredesigned tobring thetrade regime intoconformity withWTO requirements.
Reply
Please seereply toquestion 1.
II ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions
Question 3.
Please provide theWorking Party withacopy oftheFifth Five-Year Development Plan.WT/ACC/OMN/5
Page2
Reply
AnEnglish version ofthePlanisunder preparation. Assoonasitisready, acopy ofthe
same willbesenttotheWTO.
Question 4.
Please describe thespecific measures Oman hastaken orintends totakeforthedevelopment and
promotion ofnatural gas-based projects.
Reply
GasSector
By2020theGasSectorisexpectedtocontributearound(10percent)inOman’sGrossDomestic
Product compared toabout (1.5percent) attheendof1995. Thismeans theachievement ofhigh
rates ofgrowth inthevalue addition ofthissector with anaverage annual growth ofabout
(11.1 percent). Thisbigjump inthevolume andcontribution oftheGasSector isattributed tothe
following:
(i) theavailability oflarge sizeoftheconfirmed present reserves ofnatural gasestimated tobe
about 16trillion cubic feet,inaddition tothepromising expectations ofdiscovering large
additional quantities inthefuture;
(ii) governmentpoliciesthataimtowardstheencouragementandinducementofthelocalandforeign
private sector 'sparticipation intheutilization ofthisvitalresource;
(iii) theestablishment ofindustries thatdepend ontheutilization ofgasasabasic input suchas
theLiquefied Natural GasProject andanumber oflarge industrial projects thatusegasand
energy asarawmaterial, suchaspolyethylene.
Natural GasExploration Programme
TheNatural GasExploration programme aims atincreasing Natural Gasreserves through
exploration anddrilling andconfirming theactual quantities thatcanbeexploited. Asaresult, the
plangives special importance tothisproject. Italsoenhances theopportunities oftheeconomic
diversification strategy ’ssuccess adopted bythefuture vision ofOman 'seconomy which considers
theutilization ofnatural gas,especially theLiquefied Natural GasProject, itsfirstpriority. The
upstream programme isbeing financed directly bytheGovernment while Petroleum Development Oman
Co.carry outtheimplementation ofprogramme under authorization fromtheMinistry ofPetroleum
andMinerals. Thetotalallocation ofthisprogramme intheFifth-Five-Year Planamounts toabout
RO42million.
Question 5.
Please describe fortheWorking Party theobjectives oftheFifth five-year planinrelation tothe
development ofthepetroleum andpetrochemical sectors.WT/ACC/OMN/5
Page3
Reply
Theobjectives oftheFifth Five-Year Planconcerning oilandpetrochemicals include the
following:
(i) Increasing thecrude oilproduction ratestoreach about 880thousand barrels perdayonan
averageduringtheyearsoftheplanwithoutaffectingthebasictechnicalrequirementsformulated
tolengthen theassumed lifeofoilaslongaspossible.
Theplanaimsatincreasing thecrude oilproduction ratessoastoreduce theeffects ofthe
stabilization ofoilprices atthe15dollars/barrel levelwhich istheassumed price inthecomputation
ofoilrevenue estimates during theFifthPlan. Italsoaimsattransferring allincreases thatmayoccur
ontheassumed oilprices anduntiltheprice of17dollars/barrel isrealized, totheState'sGeneral
Reserve Fund. Theoilproduction ratestargeted intheplanarebased inthelightofthefindings of
acomprehensive study ofstatus oftheoilsector which encompassed allthebasic infrastructures of
thesector. They arealsobuiltontheexpectations oflarge increases inthevolume ofoilreserves,
andconsequently theplanned increase should notresult intobottlenecks intheproduction operations
orariseintheannual exhaustion above 6percentofthetotalaccumulated reserve andhence, the
technical requirements forlengthening theassumed lifeofoilwillnotbeviolated.
(ii) Diversification oftheNational Income Sources byincreasing theNon-oil Sectors Share inthe
Gross Domestic Product toabout (68.8 percent) bytheendof2000.
Theefforts ofthePlanareconcentrated inthefieldofeconomic diversification inthefollowing
way:
- utilization ofthegasreserves;
- thelarge expansion inpetrochemical industries.
Themostimportant objectives ofthePetroleum Development Oman Co.intheFifthFive-Year
Planadopted bytheBoard ofDirectors ofthecompany incoordination withtheMinistry ofPetroleum
andMinerals, areasfollows:
(i) raising thedailyproduction ratesofoilforthecompany intheFifthFive-Year Plantoreach
846thousand barrels/day compared toabout 731thousand barrels intheFourth Five-Year
Plani.e.anincrease of(15.7 percent);
(ii) maintaining theoilreserve andincreasing ittoenable ittomeetthetargeted production rates,
asforpossible, through exploration, re-assessment offields, intensifying oilsector studies and
developing exploration methods andextraction ways. Inthisrespect, itisplanned toincrease
oilreserves byanannual amount of320million barrels/day during theyears oftheplan, i.e.
exceeding thetargeted annual production rateintheplanbyabout (3.6percent) which will
increase theproven reserve intheyear2000 byabout (1.1percent) compared byitslevel
in1995.
(iii) rationalizing andreducing costsbyusing modern technologies inlinewiththerecommendations
oftheworking group which wasformed toreview theproduction costandwhich included
representatives oftheGovernment andforeign partners;WT/ACC/OMN/5
Page4
(iv) Absorbing theexpected increase inprices bothnationally andinternationally. Thecompany 's
investment programme estimates were prepared assuming anannual inflation rateofabout
(3percent).
Question 6.
Doesthefifthfive-yeardevelopmentplan,oranyprecedingplans,identifyspecificindustrialsectors
orfirms tobesupported orpromoted?
Reply
Therealization ofthefuture vision oftheOman ’sEconomy -Oman 2020forthediversification
oftheeconomy requires thetransition from aneconomy thatdepends upon asingle non-renewable
source ofincome thatiscontinuously influenced byexternal economic andpolitical factors, toan
economy withseveral renewable sources. Thiscanbeachieved byfollowing ahostofsuitable policies
thatconform totheeconomic diversification strategy.
Thefollowing areanumber ofdimensions thatareconnected withthedevelopment ofthe
industrial sector:
1. Thestrategy ofhigher added value:
Thisstrategy places emphasis ontheindustries thatarecharacterized bytheuseofcapital
intensive production methods. Italsodepends onhighandadvanced technology andscientific research
anddevelopment thatdepends upon trained national human resources intheengineering, technical
andadministrative fields andwhopossess theability toimplement thisstrategy withefficiency.
Toensure ahighdegree ofsuccess ofthisstrategy anumber ofpolicies would beadopted.
Some ofthemost important policies arelisted below:
(a) Developing theprivate sector andenhancing itsroleinthedomestic economy.
(b) Enhancing thestrategic, guidance andsupervisory roleoftheGovernment.
(c) Developing human resources, together withthemarket mechanisms insuchawayastoincrease
national labour force participation andraisetheefficiency ofthelabour market.
(d) Developing industries thatdepend onlocalresources andgiving priority tothose industries
thatdepend ongasasmajor input. Basically thestrategy aimstoconcentrate onthefollowing industries:
- those thataimattheproduction andexport ofnatural resources withvalue addition;
- those withinputs ofother industrial products made from local resources inthe
agricultural, fisheries andminerals sector;
- import substitution wherever itiseconomically feasible;
- those depending upon theutilization oftraditional technologies;
- export industries thatbenefit from thestrategic location oftheSultanate;WT/ACC/OMN/5
Page5
- subsidiary andancillary industries thatachieve balanced industrial development;
- minerals, building material industries andencouraging theestablishment ofassembly
industries.
2. Developing Medium andSmall Industries:
TheSultanate attaches great importance tothedevelopment ofthemedium andsmall scale
industries which willgreatly benefit theOmani economy.
Tobeabletodirect theprogress andcourse oftheeconomy inthisstrategy, theGovernment
willbeadopting thefollowing policies:
- facilitatingproceduresanddevelopinginformationsystemspeciallyrelatingtoexternalmarkets;
- facilitating andobtaining thenecessary finance (capital andsoftloans) through theestablishment
ofaspecial fundforthispurpose (Venture Capital Fund);
- establishment ofa“Business Centre ”toprovide itsservices (offices -coordination activities)
forthemedium andsmall industries.
Question 7.
Please discuss anytrade-related measures toprotect theenvironment Oman istaking orintends
totake, byaffected sector orindustry. How doesOman intend toaddress thenegative impacts
thatmayarise asaresult ofcostreduction efforts byprivatized enterprises?
Reply
TheSultanate ofOman doesnothavenordoesitintend totaketrade-related measures toprotect
theenvironment.
Question 8.
Inpara 25(ii), Oman states thatithas“plans toreduce thedependence onoil”.Please explain
inmore detail howOman intends toachieve thisobjective.
Reply
Theplans forachieving thisgoalarespelled outinthefuture vision forOman ’seconomy during
thenextquarter century uptotheyear2020. TheGovernment hasissued areport onitseconomic
strategy forOman (the“Vision 2020”Conference Report ”).TheVision Conference Report setsforth
objectives forthedevelopment ofOman ’seconomy by2020, including: (i)tocreate astable
macroeconomic framework fortheeconomy through improvements inthebalance between Government
revenues andexpenditures, raising savings ratesandencouraging market competition, (ii)toreduce
theGovernment ’sroleincommercial production andservices while improving thelevelandquality
ofbasicGovernment services, (iii)toincrease thestandards ofeducation andvocational training, (iv)to
promote economic diversification byencouraging investment innon-oil export industries andservices,
(v)todevelop theprivate sector through privatization policies andreducing barriers toentry ofprivateWT/ACC/OMN/5
Page6
capital intotheproduction andservice sectors oftheeconomy and(vi)tostrengthen economic relations
withother countries.
TheFifthPlanaimstoincrease theGDP share ofthenon-oil sector to69percentbytheyear
2000. This includes development andpromotion ofnatural gasbased projects. Theshare of
manufacturing sector inGDP istoincrease to15percentby2020 from alowof5-6percentin
mid-1990s. Some major industrial projects -fertilizer plant, LNG, aluminium smelter, andpolyethylene
complex willcontribute significantly todiversity theOmani economy andreduce itsdependence on
oil.Inorder toachieve theseresults, domestic andforeign investment isbeing encouraged, andprivate
sector ’sshare intotalinvestment intheFifth Planhasbeenraised to53percent.
Question 9.
Onpage 5itisstated that“theGovernment shall determine theunified maximum tariff tobe
paidbyallconsumers intheSultanate ”.Isthisrelated toservices andallgoods?
Reply
Thisrelates onlytobasic utilities.
Question 10.
Arethere anyrestrictions toforeign participation intheprivatization programme (e.g.specific
sectors from which foreign participation isexcluded, general restrictions such asceiling levels
offoreign participation)?
Reply
RoyalDecreeNo.42/96promulgating“PrivatizationPoliciesandControls”callsforencouraging
foreign participation inprivatization projects withtheobjective ofbenefiting fromforeign capital and
expertise. Such participation shall begoverned bytheOmani Foreign Capital Investment Law.
Companies established totakeoverprivatized projects shallbePublic JointStock Companies offering
atleast40percentoftheirshare capital forpublic subscription. Foreign equity insuchcompanies
shallbeupto49percent.
Nospecific sectors areexcluded forforeign participation intheprivatization programmes.
Question 11.
What sectors, ifany,areexcluded from theprivatization programme?
Reply
There isnospecific exclusion ofanysector forprivatization.
Question 12.
Arethere anyconditions attached totheparticipation offoreign investors intheprivatization
programme?WT/ACC/OMN/5
Page7
Ifso,dothese restrictions alsoapply topotential domestic investors?
Reply
There arenorestrictions toforeign participation. Theregulations oftheprivatization process
(Royal Decree 42/96) statethattheOmani shareholders shallownatleast51percentoftheshares
ofthecompany implementing theprivatization programme.
Question 13.
How does Oman reconcile thestated goalofpromoting “commercial activity andremoving
constraints which impede theconsolidation offreemarket operations andfreecompetition ’
(WT/ACC/OMN/2, page 21,para (viii)), withthefollowing policies:
- Royal Decree 10/91, which permits thegranting ofloans forprivate sector projects in
thefields ofindustry andtourism, provided that75percentofthecapital isOmani-owned
throughout theloanperiod, orelseiftheprojects are51percentOmani-owned and
contribute tothenational economy;
- Ministerial Decision 49/91, which permits thegranting ofloans forindustrial projects
aslongastheprojects areexporting more than 10percentoftheir production, using
20percentoflocal rawmaterials intheproduction process, andemploying more than
25percentOmani labour;
- Ministerial Decision 49/91, which gives tourist projects preferential loans iftheyemploy
atleast25percentOmani labour forexisting projects, and15percentfornewprojects;
- MinisterialDecision49/91;whichawardsindustrialloansforbricks,carpentryandsmithing
work shops provided theyarefully owned byOmanis.
Reply
TheSultanateofOmanispursuingapolicyofpromotingandconsolidatingfreemarketoperations
andfreecompetition. Wedonotseethattheprovisions ofRoyal Decree 10/91 andofMinisterial
Decision 49/91, quoted intheQuestion, areincompatible withthefreemarket principles.
Loans from commercial banks areavailable toallenterprises onthesame basis without any
specific conditions orrequirements.
Theconditions mentioned inthequestion areapplicable onlyifsome enterprises seekloans
from government funded institutions.
Loansforbricks,carpentryandsmitingworkshopsareprovidedtosmallindividualentrepreneurs
soastohelpthem startsmall businesses andtoreduce unemployment.
These policies relate onlytointerest freeloans andshould beviewed from theperspective
thatOman isadeveloping country intheearly stages ofindustrial development. TheSultanate has
virtuallystartedfromscratch,theprocessofeconomicdevelopmentin1970underquasi-completeabsence
ofanindigenous class ofentrepreneurs. Assuchthese policies were drafted astools tocreate and
nurture aclassofOmani entrepreneurs which isaprerequisite foreconomic development, tocreateWT/ACC/OMN/5
Page8
employment opportunities forOmanis andfinally these policies serve asinstruments ofincome
distribution.
Oman isintent ondiversifying itseconomy away from heavy dependence onoilintoother
non-oil sectors andtoshiftinvestment from thepublic totheprivate sector. Theabove mentioned
policies aremeant tomotivate theOmanis tocontribute towards achieving these objectives.
Evenadvanced developed countries giveincentives andsupport tosome sectors oftheeconomy
forexample agriculture. Thatdoesnotmean thattheyarenotpursuing free-market policies ingeneral.
Thesame istrueofOman.
Question 14.
The Memorandum refers totheaimofbalancing government expenditure andrevenue
(WT/ACC/OMN/2, page 4,para 25).
Towhat extent isthetariff anessential source ofgovernment revenue?
Willthisaffect theability oftheOman government inthecontext ofitsWTO accession toreduce
barriers toimports andbinditstariff atareasonable level?
Reply
Oilisthemainsource ofrevenue oftheSultanate. Tariff atpresent isnotanessential source
ofrevenue fortheGovernment.
TheGovernment would beprepared tobindtariffs onthebasis ofmutual advantage, and
commensurate withthelevelofdevelopment andlevelofindustrialization ofOman.
Question 15.
Wewould appreciate more detail oncurrent andexpected progress towards achievement ofOman 's
privatization plans (WT/ACC/OMN/2, pages 5-6,para 25(iv))
Reply
Oman hasachieved through management contracts intheservice sectors likeelectricity and
water thebenefits ofprivatization byawarding operation andmaintenance contracts ofthepower and
desalination plants totheprivate sector. Thishadbeendonebefore formally formulating thepolicy
ofprivatization inthecountry. Intheelectricity sector thegovernment hasawarded aconcession of
theAlManah project intheyear1995toaprivate company based onthepolicy ofbuild, operate and
transfer (BOOT). Thisaward wasmade onatender basis. Thisproject involved setting upofa90MW
power station atManah andtheassociated transmission andthedistribution network tointerconnect
thepowerplantwiththeexistingsystem.Thisprojectisnowoperationalcompletely,havingcommenced
thecommercial operation inOctober 1996.
Inthewaste water sector, thegovernment invited tenders fortheprivatization ofMuscat and
theSalalah systems. Thetenders havebeenevaluated andtheselection ofasuccessful consortium
isbeing made toimplement theprojects. Adecision isexpected soontofinalize theconcession contracts.WT/ACC/OMN/5
Page9
Intheelectricity andwater sectors, thegovernment isevaluating various options tointroduce
privatization. Thegovernment isalsoevaluating proposals toprivatize thetelecom andtheroadsector.
Intheports sector, aprivate consortium hasbeenidentified toownandmanage theportat
Raysut inthesouth ofthecountry.
Price controls
Question 16.
There isnoinformation intheMemorandum ontheForeign Trade Regime ontheuseofprice
controls within theSultanate ofOman. Arethere anyprices setbyOman authorities? Ifso,please
identify allgoods orservices thataresubject toprice controls, bytariff lineitemasappropriate,
describing whysuchcontrols have been applied, andoutlining Oman ’splans forsuchcontrols
inthefuture, e.g.willtheybeliberalized?
Reply
Prices aresetbytheGovernment onlyforpetroleum, electricity, water andtelecommunication.
These price controls areapplied forthebenefit ofconsumers, inorder toprovide themthese facilities
atreasonable prices. There arenoliberalization plans atpresent. There arenoprice controls onany
other item.
Question 17.
Please outline howtheGovernment ofOman determines which goods orservices should besubject
toprice controls andhowtheprice control levels aredetermined.
Reply
TheCabinet determines theitems andtheprices keeping inviewtheneedandwelfare ofthe
citizens.
Question 18.
Which Ministry regulates price controls andinwhat lawisthisauthority contained?
Reply
Theauthority restswiththeCabinet andnotwithanyMinistry.
Question 19.
Areanygoods orservices subject toprice control? Ifso,please provide details?
Reply
Please seereply toquestion 16.WT/ACC/OMN/5
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(c) Foreign exchange andpayments systems
Question 20.
Itisstated insection that“noexchange control requirements areimposed oncapital receipts by
residents ornon-residents ”.Please confirm thatnorestrictions onthemovement ofcapital between
Oman andthird countries exists. Ifthisisnotthecase, please indicate which restrictions apply.
Reply
No,there arenorestrictions onthemovement ofcapital.
(d) Foreign anddomestic investment policies
Question 21.
Please explain inmore detail howOman promotes private sector investment, asstated inpara.32.
Reply
Private sector investment isencouraged andpromoted through continuation ofprivatization
policies. Anoutlay ofRO1008million ($2620 million) hasbeenearmarked forprivatization projects
during 1996-2000. Theshare oftheprivate sector intotalinvestment intheFifthPlanhasbeenput
at53percenti.e.RO3900 million.
TheGovernment istaking allpossible stepstoeliminate procedural andadministrative barriers
hindering theentry ofprivate capital inthegoods andservices sectors.
TheOmani trade andinvestment lawsarebeing reviewed topromote private investment
(includingforeigninvestment)inthecountry.AsinglewindowfacilityhasbeenprovidedintheMinistry
ofCommerce andIndustry toattract foreign investors toinvest inthecountry.
TheOmaniGovernmentalsoprovidesanumberofincentives-lowtaxratesoncorporateincome,
dutyfreeimport ofrawmaterials andcapital goods, pre-feasibility studies onprojects, concessionals
credit facilities fromspecialized financial institution etc. Bothinformation andincentive aspects are
being strengthened topromote private sector investment inOman.
Question 22.
Areanyincentives toforeign investment being considered bytheGovernment?
Reply
Thefollowing incentives areavailable toforeign investors:
1. Foreign investors areallowed tosetupprojects inOman andownupto100percentoftheir
capital forprojects thatcontribute tothedevelopment ofthenational economy provided that
thecapital oftheproject shallnotbelessthanRO500,000 (equivalent toUS$1,300, 000).
Forother projects, aforeign share holding ranging between 49percentand65percentis
allowed.WT/ACC/OMN/5
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2. Freesurveys ofindustrial investment opportunities andeither undertaking orsubsidizing the
costs ofconducting economic andtechnical feasibility studies forindustries ofimportance to
thenational economy.
3. Investment projects shallbeexempted fromcustoms duties onimports ofmachinery, equipment
andrawmaterials required forproduction.
4. Fully serviced Industrial Estates where plotsofvarying sizesandadvance facilities areavailable
either byusufruct orthrough long-term rentatnominal rates.
5. Availability ofreliable supply ofpower, water, natural gasandsewage treatment services at
reduced rates.
6. Provision ofinterest-free Government loans andaccess tosoftloans uponsatisfaction ofcertain
criteria.
7. Exemption from income taxoncompanies forfiveyears (thismayberenewed foranother
period offiveyears). Thereafter taxratesranging from5percent-25percentareapplied,
depending onthepercentage offoreign shareholding, shares publicly offered intheOmani
market, andtheamount oftaxable income realized. Besides, losses incurred during the
exemption period(s) enjoy thereafter verygenerous carry-over system.
Question 23.
Could Oman detail thecircumstances inwhich foreign investment projects could beconfiscated
orexpropriated inthe“public interest ”,and theattendant compensation procedures
(WT/ACC/OMN/2, page 8,para 34)?
Reply
Confiscation andexpropriation offoreign investment projects could takeplace during astate
ofnational emergency. Butsuchmeasures would betaken onlyforapublic purpose authorized by
law,onanon-discriminatory basisinaccordance withthelawsprevailing intheSultanate, andagainst
compensation. Such compensation, shallsubject totheOmani Laws, beequal tothevalue ofthe
investment immediately before theexpropriation orbefore theimpending expropriation became public
knowledge. Thecompensation shallbefreely convertible andtransferable. Affected investors shall
beaccorded treatment notlessfavourable thanthataccorded toOmani nationals ornationals ofany
thirdState withrespect torestitution, compensation, indemnification oranyother settlement.
Question 24.
Under what circumstances would a100percentforeign-owned investment project contribute
"tothedevelopment ofthenational economy" andtherefore beapproved bytheCouncil of
MinistersuponarecommendationfromtheMinisterofCommerceandIndustry(WT/ACC/OMN/2,
page 8,para 35)?WT/ACC/OMN/5
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Reply
There arenostandard criteria inthisrespect asprojects areconsidered oncase-by- casebasis.
Butgenerally aforeign investment project isconsidered tocontribute tothedevelopment ofthenational
economy ifitisastrategic industry which fulfils thefollowing criteria:
- economic development ofOman outside thecapital area;
- transfer oftechnology through industrial training, licensing ofindustrial processes, andresearch
anddevelopment, which willhelpdiversify theeconomy;
- application ofnewtechnology toimprove existing infrastructure.
Question 25.
What incentives doesOman provide forforeign investors andaretheycompatible withtheTRIMS
agreement? (WT/ACC/OMN/2, page 8,paras 34-35).
Reply
Please seereply toquestion 22.
Theincentives donotappear tobeincompatible withtheTRIMs Agreement asnoprohibited
TRIMs areusedbyOman.
Question 26.
Could Oman provide more detail onitsownership rules, especially anywhich require foreign
companies topurchase foodstuffs andsimilar supplies onthelocalmarket (rather thanimporting
directly)?
Could Oman 'sownership rulesinthisregard constitute atrade-related investment measures which
isinconsistent withtheobligation ofgeneral elimination ofquantitative restrictions assetoutin
paragraph 1ofArticle XIofGATT 1994?
Reply
Foreign Companies canmake importation asdescribed inreplies toquestions 53and57.There
isnorequirement thattheyshould make purchases onthelocalmarket. Wedon’tconsider there is
anytrade-related investment measure orimport restriction inthisarrangement.
Question 27.
Weseekconfirmation fromOman thatitintends toensure thatmeasures usedtopromote economic
diversification anddevelopment willbeimplemented onlyinconformity withWTO provisions,
e.g.regarding subsidies, trade restrictions, andtrade-related investment measures.WT/ACC/OMN/5
Page13
Reply
TheSultanate ofOman confirms thatitwould faithfully abide byitsobligations under theWTO
rulesandwillnotmaintainoradoptpoliciesormeasureswhichareinconsistentwiththeWTOprovisions.
Question 28.
Please describe specific trade andinvestment measures thatOman usesorcontemplates using
initsdevelopment anddiversification strategy. Areforeign investors eligible tobenefit, pursuant
tothesame terms andconditions applicable todomestic investors, from these specific investment
measures?
Reply
Please seeparagraph 110oftheMemorandum andreplytoquestion 22.Incentives aregenerally
available toforeign investors onthesameterms except thatinterest-free loansarenotavailable toforeign
investors iftheirshare intheownership ofaproject exceeds 25percent.
Question 29.
Please provide specific anddetailed information onpolicies orprogrammes thatOman intends
tousetostrengthen itsagricultural sector.
Reply
TheSultanate ofOman makes efforts toachieve thefollowing objectives withrespect tothe
agricultural sector developments:
- Todevelop theagricultural resources andprotect thesame andachieve optimum utilization
which secure sustainable agricultural production, while seeking toachieve these goals, the
government implements thefollowing policies:
- toencourage theprivate sector (both commercial andtraditional) tobeinvolved in
alleconomic activities which include production, marketing andprocessing activities
andtheentire related services.
TheOmani Government asisthecaseinallcountries which adopt thefreeeconomic system,
undertakes thefollowing:
- preparation oftheagricultural production andmarketing policies andthefollow-up oftheir
implementation andtheassessment oftheresults;
- provision oftherequired infrastructure fortheagricultural workrepresented intheconstruction
ofextensioncentres,agriculturalresearchstations,groundwaterrechargedamsandmaintenance
ofthefalajs forprotecting water resources etc.;
- provision ofbasic agricultural services which aredirected originally tothetraditional sector
thatincludessmallscalefarmerssuchasagriculturalextensionservicesforupgradingproduction
efficiency;WT/ACC/OMN/5
Page14
- provisionofappropriateincentivesforimprovingtraditionalfarmersproductivityandtoacquaint
them withtheuseofmodern agricultural inputs;
- toconcentrate onvertical production expansion which depends onagricultural intensification
method through application ofmodern agricultural techniques;
- torationalize irrigation water usethrough thedevelopment offarming methods inirrigation
andtheinstallation ofmodern irrigation systems inOmani farms;
- toemphasize theeconomic efficiency principle inagricultural production through establishing
therecommended croppattern andtheadoption ofcomparative advantage criterion foreach
region aspertheresults ofsocial, economic andtechnical studies;
- concentration ontheobjective ofincreasing thevalue added inagricultural production through
paying more attention totheproducts quality andenlightening thefarmers withthequality
control issues which contribute toupgrading ofagricultural production value inaddition to
theestablishment ofmodern marketing system;
- formation ofintegrated pointofviewwithrespect todirecting theagricultural sector production
policy considering theproduction, marketing, processing andfunding activities asintegral to
eachother andtherefore tobetreated asintegrated measures asfarasagricultural policy is
concerned;
- theSultanate ofOman adopts freeeconomic policy inexternal tradesphere astheprivate sector
takestheresponsibilityofimportingandexportingtheagriculturalproductsandinputsaccording
tothemarket mechanism.
Question 30.
Please identify anysectors oftheeconomy inwhich foreign investment isprohibited orrestricted.
Please describe fully anysuchrestrictions onforeign investment.
Reply
Foreign investment isnotprohibited orrestricted inanysector.
Question 31.
Please describe Oman 'spolicies forforeign investment inthepetrochemical sector, withparticular
reference toanyincentives interms ofrawmaterial pricing andtaxexemptions.
Reply
Therearenospecificinvestmentpoliciesforthepetrochemicalsectorandnoparticularincentives
forthissector interms ofrawmaterial pricing andtaxexemptions.WT/ACC/OMN/5
Page15
3. Foreign Trade inGoods andServices
Question 32.
Please citeallexisting laws, decrees, andregulations thatprovide fortariff ornon-tariff measures
toprotect domestic output from import competition; describe their provisions; andidentify the
authorities oftheGovernment ofOman thatadminister these laws.
Reply
Allexisting lawsandregulations arelisted inAnnex 2totheMemorandum ontheForeign
Trade Regime ofOman (document WT/ACC/OMN/2). Theauthorities responsible foradministering
different lawsarealsoindicated inAnnex 2.
Question 33.
Please describe theownership andoperational authority structure inplace intheSultanate of
Oman fortheproduction andexport ofcrude oilanditsderivatives.
Reply
Crude oilanditsderivatives arewholly owned bytheGovernment ofOman.
Theproduction ofcrude oilandnatural gasandexport ofcrude oilisundertaken byPetroleum
Development Oman (PDO), asoperator, onbehalf oftheGovernment. PDO isowned 60percent
bytheGovernment and40percentbytheprivate shareholders, comprising Shell (34percent),
Total (4percent) andPartex (2percent).
Theprocessing ofOmani crude oilintorefined products isundertaken byOman Refinery
Company (ORC). Theonlyproduct exported from theRefinery isLong Residue (fueloil). Thisis
undertaken byORC.
ORC wasestablished byaRoyal Decree asa100percentOmani Government Commercial
Limited Liability Company.
Question 34.
Please describe thesystem usedbyOman toacquire and/or taxoilrevenues.
Reply
There isnosystem.
Question 35.
Please elaborate onspecific aspects oftheOmanisation policy toincrease thelevels ofOmani
participation inthelabour force, withparticular reference toanyrestrictions onordifferential
treatment offoreign labour services.WT/ACC/OMN/5
Page16
Reply
TheOmanisation policy seeks toachieve ahigher ratioofOmani labour inthejobmarket.
Withaviewtopromote employment opportunities fortheOmanis, thegovernment isconsidering and
adopting number ofsteps intheFifth Plan.
First-vocational training programmes forOmanis tobecome skilled andqualified workers,
together withemployment incentive schemes totheprivate sector tohireOmanis.
Second -expansion ofnon-oil sector inFifth Plan, creating jobopportunities intourism,
agri-processing, trading, petrochemical sector.
Third -Omanisation ratioinprivate sector isexpected togoupto75percentby2020 from
15percentin1995.
Fourth -private sector participation informulation ofpolicies related toupgrading oftechnical
education andvocational training.
Fifth -according totheFifth Plan projections, 150,000 jobswillbecreated andonly
110,000 Omanis willbeavailable, therestwillgotoforeign labour; when demand exceeds supply,
there isnoquestion ofputting anyrestrictions onforeign labour.
Question 36.
Please listanddescribe Oman ’slawsandregulations governing international participation inits
services sector.
Reply
Thelawsandregulations oftheSultanate ofOman governing international participation inits
servicessectorarelistedinparagraph5(a)ofAnnex2ofdocumentWT/ACC/OMN/2-theMemorandum
ontheForeign Trade Regime ofOman. Copies ofthese havebeensubmitted totheWTO secretariat.
Itwillbeappreciated thatitisnotpossible inthisdocument todescribe allthese lawsandregulations.
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
1. Powers ofExecutive, Legislative andJudicial Branches ofGovernment
Question 37.
Please confirm thatthere isnolegislative body withauthority tomake orreview laws, decrees,
etc.,concerning issues ontrade ingoods andservices.
Reply
Asdescribed inparagraph 48oftheMemorandum ofOman, document WT/ACC/OMN/2,
alllawsanddecrees areissued byHisMajesty theSultan ofOman. There isnolegislative bodywith
thepower tomake orreview laws.WT/ACC/OMN/5
Page17
Question 38.
Please listanyoftheSpecialized Councils established byHisMajesty thataddress issues ontrade
ingoods andservices, anddescribe their mandate andcomposition.
Reply
There arenoSpecialized Councils thataddress issues ontrade ingoods andservices.
Question 39.
Arealllegal andadministrative actsrelating totrade required tobepublished intheOfficial
Gazette?
Reply
Alllaws, by-laws, implementing regulations andimportant Ministerial Decisions arepublished
intheOfficial Gazette. Routine administrative decisions, however, arenotpublished intheOfficial
Gazette.
Question 40.
With regard tothelastsentence ofpara. 48,please clarify thecircumstances under which His
Majesty theSultan ofOman might decide thatatreaty, convention orcharter should notbepart
ofthelawofthelandeventhough ithasbeen ratified.
Reply
Thelastsentence ofparagraph 48ofOman 'sMemorandum doesnotmean thatatreaty,
conventionorcharterratifiedbyHisMajestytheSultanwouldnotbeimplementedandwouldnotbecome
partofOman 'slaw.What wasintended tobeconveyed wasthatnormally atreaty etc.would become
partofOman 'slawasofthedateofpublication intheOfficial Gazette. However, insome cases where
considered appropriate, HisMajesty theSultan maydecide thatthetreaty, convention etc.would become
partofOman 'slawfrom adatelaterthanthedateofpublication intheOfficial Gazette.
Question 41.
Please describe howOman willaddress ratification ofitsaccession package after approval by
theWTO General Council andOman signs itsAccession Protocol.
Reply
TheProtocol ofAccession andtheaccession package willbesubmitted bytheMinister of
Commerce andIndustry totheCabinet, which would submit toHisMajesty theSultan withits
recommendations. After ratification byHisMajesty theSultan, aRoyal Decree would beissued which
would bepublished intheOfficial Gazette.WT/ACC/OMN/5
Page18
Question 42.
What role, ifany,willthespecialized Councils have inOman ’sapproval ofitsWTO accession
package?
Reply
None.
Question 43.
Will implementing legislation berequired tocomplete national procedures relating toWTO
accession?
Reply
Yes.
Question 44.
WilltheAgreement constituting theWTO bedirectly applicable under Omani law?
Reply
Yes.
Question 45.
Please provide details about thehierarchy oflaws. Where dointernational treaties suchasthe
WTO fitintothishierarchy?
Reply
Thehierarchy ofOman 'slawsisasfollows:
- theBasic LawofOman (constitution);
- Royal Decrees;
- By-laws andImplementing Regulations;
- Ministerial andAdministrative Decisions.
International treaties, suchastheWTO, rankwiththeRoyal Decrees.
Question 46.
Please outline insome detail howtheAuthority forSettlement ofCommercial Disputes isorganized
andoperates, e.g., thecomposition ofthispanel, howcases areinitiated, requirements placed
ondefendants andcomplainants, etc.
TheAuthority forSettlement ofCommercial Disputes hasbeenestablished pursuant toaRoyal
Decree. Itconsists ofaChairman, aDeputy Chairman, anumber ofjudges appointed byRoyal DecreeWT/ACC/OMN/5
Page19
andanumber ofmembers fromtheOman Chamber ofCommerce andIndustry selected bytheMinister
ofCommerce andIndustry ontherecommendation ofChamber ’sBoard ofDirectors.
Cases areheard bycircuits formed bytheChairman. Eachcircuit consists ofaVice-Chairman,
(who presides), twojudges andtwomembers from theChamber.
Appeals against thedecision ofacircuit areheard byanAppellate Circuit oftheAuthority.
AnAppellate Circuit consists oftheChairman (who presides), twojudges andtwomembers ofthe
Chamber. Thejudges andChamber members arethose whohavenotheard theoriginal case.
AcaseisfiledwiththeAuthority byaplaintiff whohastosubmit awritten application signed
byhimorhisattorney. Theapplication should contain thefactsofthecaseandthereasons whythe
applicant wants arelief. Itshould alsobeaccompanied byafee.
Acopyofthecomplaint issenttothedefendant bytheAuthority andheisrequired tosubmit
awritten reply tothecomplaint within tendaysofitsreceipt.
Thedateofhearing ofacaseisfixed notlaterthan30daysfromthereceipt ofwritten reply
ofthedefendant.
Thecomplainant andthedefendant areheard bythecircuit, andthecircuit afterhearing the
caseandweighing thearguments gives awritten reasoned decision, copyofwhich ismade available
totheparties.
Question 47.
Please indicate towhat extent disputes arising from measures covered bytheWTO andthe
Multilateral Trade Agreements contained initsAnnexes would notbereviewed bytheAuthority
forSettlement ofCommercial Disputes.
Reply
TheroleoftheAuthority forSettlement ofCommercial Disputes inrelation totheWTO and
Multilateral Trade Agreements isbeing examined bytheMinistry ofLegal Affairs.
Question 48.
Please describe indetail how, e.g., acustoms dispute would behandled (a)bytheauthorities
administrating Oman ’slawsandregulations; and(b)bythejudicial authorities ifanimporter
contested thedecision ofthecustoms authorities attimeofimportation.
Reply
Disputes relating tocustoms matters arereferred tohigher authorities ofCustoms.
Question 49.
Isthere theright ofappeal from theAuthority forSettlement ofCommercial Disputes?WT/ACC/OMN/5
Page20
Reply
Asdescribed inreply toquestion 46,anappeal against thedecision ofthecircuit which heard
theoriginal caselieswiththeAppellate Circuit oftheAuthority.
2. GovernmentalEntitiesResponsibleforMakingandImplementingPoliciesAffectingForeign
Trade.
Question 50.
Could Oman elaborate onthenature ofsupport provided totheagricultural, fishandanimal
industriesbytheMinistryofAgricultureandFisheries(WT/ACC/OMN/2,page11,paragraph56)?
Reply
Thenature ofsupport provided toagriculture islisted inWT/ACC/4, which isbeing sent
separately. There isnosupport tofishandanimal industries.
Question 51.
Itisstated intheMemorandum thatthere arenocurrent plans tochange anylawsorregulations
impacting onforeign trade (WT/ACC/OMN/2, page 11,paragraph 59).
HasOman undertaken astudy ofitslaws, regulations andadministrative practices toidentify
thechanges thatwillbenecessary togiveeffect toOman ’sobligations asafuture WTO Member?
Ifso,caninformation beprovided ontheaction thatneeds tobetaken?
Reply
TheSultanate ofOman would undertake astudy ofitslaws, regulations andadministrative
practices inthelightofquestions, comments andobservations made byWTO Members atthefirst
meeting oftheWorking Party ontheAccession ofOman.
Question 52.
WT/ACC/OMN/2 states inparagraph 7thattheSultanate "...willbetaking measures tobring
itsregime intoconformity withtheWTO." Inparagraph 59,however, itisstated that"There
arenolegislative programmes orplans atpresent tochange theregulatory regime".
Instatement inWT/ACC/OMN/2, Oman hasagreed thatthere areaspects ofitsregime, e.g.
intellectual property protection andcustoms valuation thatarenotinconformity withWTO
provisions. Webelieve thatthere areother areas ofthetrade regime thatwillrequire amendment
tomeet WTO norms.
Could Oman clarify howitintends toproceed toaddress aspects ofitstrade regime identified
during thenegotiations asneeding amendment tomeet WTO provisions?
Specifically, howwilltheGovernment ofOman adopt newlawsandregulations tobring itstrade
regime intoconformity withWTO requirements atthetimeofaccession, andtoimplement the
provisions oftheAgreement Establishing theWTO anditsannexes?WT/ACC/OMN/5
Page21
Reply
TheGovernment oftheSultanate ofOman iscommitted toassume allobligations under the
Agreement Establishing theWorld Trade Organization andunder thevarious agreements annexed to
theWTO Agreement. Itwould, asappropriate, amend lawsandregulations which arenotfound to
beinconformity withtheWTO rules. Itwould alsobeprepared toenact newlawsandregulations
thatmaybeconsidered necessary tocomply withWTO requirements. Thenature andextent ofthis
exercise would emerge from thedeliberations oftheWorking Party intheaccession negotiations.
TheSultanate ofOman mayalsoavailoftransition periods where appropriate.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting
Question 53.
Please describe therequirements forregistration foracompany orindividual (a)toengage in
commercial activity inOman, and(b)toimport ortodistribute imports inOman.
Reply
Therequirement forregistration ofacompany toengage incommercial activities istoapply
totheMinistry ofCommerce andIndustry intheappropriate formalong withtheMemorandum and
Articles ofAssociation ofthecompany andtheidentification documents ofthepartners orDirectors
oftheCompany. Joint Stock Companies andCompanies subject totheForeign Capital Investment
Lawshould havecompleted thenecessary procedures under theCompanies Commercial Lawandthe
Foreign Capital Investment Lawrespectively before theyapply forregistration intheCommercial
Register.
ACompany which isregistered intheCommercial Register canengage inimportation or
distribution ofimports inOman ifimportation anddistribution ofimports iscovered initsMemorandum
andArticles ofAssociation.
Anindividual inorder togetregistration asasoleproprietor intheCommercial Register should
beanOmani national, notlessthan18years ofage,should havetheplace ofbusiness inOman, should
nothavebeenconvicted ofanoffense andshould nothavebeendeclared asbankrupt.
Question 54.
What doestheprocess ofregistration withtheMinistry ofCommerce andIndustry consist of?
Reply
Please seereply toquestion 53.
Question 55.
Please provide details ofrelevant lawsmentioned inthissection .WT/ACC/OMN/5
Page22
Reply
Therelevant lawsare:
- theOman Commercial Law;
- theCommercial Companies Law;
- theForeign Capital Investment Law.
Question 56.
Please listthe"relevant laws" concerning registration andprovide copies intranslation tothe
WTO Secretariat forWorking Party review.
Reply
Please seereply toquestion 55.Copies oftheselawshavealready beenprovided totheWTO.
Question 57.
Please confirm thatforeign companies andindividuals arepermitted toengage incommercial
activities suchasimporting andcommercial marketing within Oman, under thesame conditions
asdomestic entities.
Reply
Foreign companies canengage inimportation anddistribution ofimports provided theyhave
completedtherequirementsundertheForeignCapitalInvestmentLaw(referenceparagraph35ofOman’s
Memorandum), andhavefulfilled therequirements ofregistration asinreply toquestion53.
Asforforeign individuals, theyarenotallowed toengage inimportation ordistribution of
imports.
Question 58.
Canforeign nationals andcompanies register under thesame conditions asOmani nationals and
companies? Ifnot,whynot?
Reply
Please refertoreplies toquestions 53and57.According toourunderstanding, whereas WTO
rulesdorequire member countries toprovide national treatment forimported goods, theydonotappear
tooblige acountry toprovide national treatment forindividuals andcompanies.
Question 59.
Please describe theprovisions oftheLawonCommercial Agencies, asnoted inAnnex 2ofthe
Memorandum. What istherationale forthislaw,andwhat isitsrelationship to(a)commercial
registration asreferred toinparagraph 66ofWT/ACC/OMN/2, and(b)theright offoreign and
domestic individuals andenterprises toimport ortodistribute imports inOman?WT/ACC/OMN/5
Page23
Reply
TheLawonCommercial Agencies laysdown provisions governing therelationship ofa
principal/supplier andhisagent inOman. Itdoesnotoblige aprincipal/supplier toappoint acommercial
agent. Butitdoesprovide thatifheappoints anagent (i)acompany, theOmani share inthatcompany
should notbelessthan51percent,or(ii)anindividual, heshould beanOmani national. Theobjective
ofthelawistoprotect theinterest ofconsumers andcommercial agents inOman. Thecommercial
agents arerequired under thelawtoprovide aftersaleservice forthegoods thattheymarket inOman
andtoprovide adequate availability ofspare parts andcomponents. Thisistheprime purpose and
rationale ofthelaw,asotherwise theconsumers maynotgetafter-sale service andspare partsforthe
equipment andarticles theypurchase.
TheCommercial Agencies Lawisnotmeant inanywaytoprovide protection todomestic
producers.
Commercial agents arerequired togetregistration intheCommercial Register forengaging
incommercial activities andinitsimportation anddistribution ofimported goods, inthesamemanner
asother enterprises andcompanies arerequired toregister intheCommercial Register asdescribed
inreply toquestion 53.
Foreignenterprisescanimportordistributeimportedgoodsasdescribedinrepliestoquestions53
and57.However, foreign individuals cannot engage incommercial activities inOman andcannot
import goods ordistribute imported goods.
(b) Characteristics ofnational tariff system
Question 60.
What isthecurrent system usedfortheclassification ofgoods?
Reply
Oman doesnotfollow anysystem fortheclassification ofgoods forcustoms purposes.
Question 61.
Please explain whyOman usestwodifferent systems forthestatistical andcustoms classification
purposes?
Reply
TheSultanate ofOman istaking stepstousetheHSSystem forcustoms classification purposes
also. Itisatpresent notusing itforthatpurpose because ofadministrative andlogistical difficulties
intheCustoms.
Question 62.
Which version oftheHarmonized System (1988, 1992 or1996) isusedforStatistical purposes?WT/ACC/OMN/5
Page24
Reply
Oman isusing HS-1988 version forstatistical purposes.
Question 63.
When doesOman intend tobring itstariff nomenclature fortheclassification ofgoods forcustoms
purposes intolinewiththeHS96system?
Reply
Oman isconsidering thepossibility ofusing HS-1996 forcustoms classification purposes and
arrangements areinprogress. Oman hopes tohavethesystem inplace before itjoins theWTO.
Question 64.
When willOman make adecision onwhether ornottouseHarmonized System forclassification
ofgoods forcustoms purposes? (WT/ACC/OMN/2, page 12,para 67,page 14,para 96)?
Reply
Please seereply toquestion 63.
Question 65.
WillOman commit tothefullimplementation oftheHSsystem forcustoms purposes prior to
accession andtotheestablishment ofitsgoods market access schedule intheHSsystem
nomenclature?
Reply
Yes,Oman would implement theHSSystem forcustoms purposes prior toitsaccession and
would establish itsschedule ofconcessions andcommitments onmarket access intheHSsystem.
Question 66.
Wewould begrateful forfurther information about Oman 'stariff regime:
TheMemorandum states that"allgoods imported forGovernmental use"aresubject tozerotariffs.
(WT/ACC/OMN/2 page12,para69).What are"goods imported forGovernmental use"? Does
thedutyexemption apply onlytogoods imported forthegovernment 'sownuseordoesitalso
apply togoods forcommercial resale?
WenotethatOman applies special duties onanumber ofproducts. Does Oman haveanyplans
torevise orreduce tariffs onthese items. (WT/ACC/OMN/2, page 12,para 70)?
TheMemorandum advises thattheexisting overall tariff regime hasbeen inforce since the
beginning of1986andthere hasbeennorevision ofrates since then(WT/ACC/OMN/2, page 12,
para 72). Does Oman intend toreview whether itisabletoreduce tariffs onanyproducts inWT/ACC/OMN/5
Page25
thecontext ofitsWTO accession? What domestic procedures existforinterested parties toseek
review oftariff rates onaparticular product andforother parties toobject tosuchchanges?
Reply
(i) Goods imported forgovernment 'sownuseandnotforcommercial resale areexempt from
customs duties.
(ii) Theratesofduties mentioned inparagraph 70oftheMemorandum (WT/ACC/OMN/2) are
ordinary customs duties applicable tothelisted items. These arenotspecial duties. There
arenoplans toreduce these duties atpresent.
(iii) TheSultanate ofOman would beprepared toengage intariff negotiations ingoodfaith, based
ontheWTOprincipleofmutualadvantage.Itwouldbepreparedtomakebindingcommitments.
Itmaybepremature totalkabout thelevel ofbindings. These would bethesubject of
negotiations.
(iv) Interested parties seeking areview oftariffratescanapproach theMinistry ofFinance. Other
parties objecting tosuchchanges canalsoapproach theMinistry ofFinance. TheMinistry
afterweighing thearguments, considering theimpact onnational economy andafterconsulting
withtheconcerned Ministries makes arecommendation totheCabinet, which makes thefinal
decision.
Question 67.
CanOman provide more information ontheGCC free-trade area(WT/ACC/OMN/2, page 12,
para 73andpage 25,para 193)?
Does itcover allproducts?
Arealltrade barriers eliminated within thefree-trade area?
Does itcover trade inservices?
Isitconsistent withArticle XXIV oftheGATT andArticle VoftheGATS?
Reply
TheGCC Free-Trade Areacovers allproducts, agricultural andindustrial. Alltradebarriers
areeliminated within thefree-trade area.
Though theGCC Free-Trade Areadoescover some services activities, inourview, itisnot
afull-fledged free-trade areainservices.
TheGCC Free-Trade Area Agreement wasnotified totheGATT byKuwait in1982. We
presume itwould havebeenexamined bytheGATT, andifnotexamined overthese years itmight
havebeenconsidered bytheGATT tobeconsistent withArticle XXIV. Inouropinion, itisconsistent
withArticle XXIV oftheGATT.WT/ACC/OMN/5
Page26
Question 68.
Would Oman please provide thetariff schedules used forcustoms purposes andtheHStariff
schedules, usedforstatistical purposes, inelectronic format ifpossible, totheWorking Party?
Reply
There isnotariffschedule assuchexcept fortheratesofduties indicated inparagraphs 69-71
oftheMemorandum.
TheHSSchedule usedforstatistical purposes inelectronic format isbeing senttotheWTO.
Question 69.
Please provide import data, inelectronic format ifpossible, for1993-95, byHStariff lineitem
andsupplier country.
Reply
Import datainelectronic format isbeing senttotheWTO.
Question 70.
According toparagraph 69oftheMemorandum, foodstuffs likemeat (except pork meat), milk,
cooking oilsandfats,cereals, tea,sugar, fresh fruits andvegetables, aresubject tozerotariffs.
Please identify these agricultural items bytariff lineitemandHS-based statistical heading.
Reply
Since theSultanate ofOman doesnotuseHSSystem forcustoms purposes, itisnotpossible
toidentify duty-free items onHSbased headings.
Acomplete listofduty-free items isasfollows:
- seeds, fertilizers, liveplants (including flower plants);
- fresh fruits andvegetables, allsorts;
- rice,wheat, wheat flour, barley, corn, sugar;
- milkallsorts, condensed andsweetened evaporated, powdered orsterilized, butnot
flavoured;
- cooking media allsorts, notincluding butter ormargarine;
- meat, fresh orfrozen;
- tea;
- cement;
- printed books allsorts;
- agricultural implements;
- insecticides especially made foragricultural use;
- goldandsilver bullion;
- currency (including goldsovereign).WT/ACC/OMN/5
Page27
Question 71.
According toparagraph 71oftheMemorandum, allproducts other thanthose specifically listed
inparagraph 69and70,aresubject toa5percenttariff rate. Paragraph 69provides thatcement
issubject toazerotariff. However, wehave received other reporting thata15percenttariff
rateisbeing applied topolyurethane products andpaints, anda20percenttariff rateisbeing
applied topipes andcement. Please confirm thatazerotariff rateisbeing applied tocement
anda5percenttariff rateisbeing applied topolyurethane products, paints andpipes.
Reply
Itisconfirmed thattherateofdutyapplicable tocement iszero, andthattherateofduty
applicable topolyurethane products, paints andpipes is5percent.
Question 72.
IsOman prepared tobind itszerocustoms tariff rateforallitems included inparagraph 69
(foodstuff, cement, fertilizers, printed material, agricultural equipment andallgoods for
government use)?
Reply
Thelevel ofbindings willemerge from tariff negotiations. Induecourse, theSultanate of
Oman would submit aninitial offerandwould thenenterintotariff negotiations withinterested WTO
members.
(c) Tariff quotas, tariff exemptions
Question 73.
Aretariff exemptions (except those applied inthecontext ofaCustoms Union orFree Trade
Agreement) applied onanm.f.n. basis?
Reply
Yes,tariff exemptions areapplied onanm.f.n. basis.
Question 74.
Please explain inmore detail what thetariff exemption for"goods imported forGovernment use"
means. What products arecovered?
Reply
Tariffexemptions,i.e.zerotariff,isappliedtoallproductswhichareimportedforgovernment’s
ownuseandnotforcommercial resale.WT/ACC/OMN/5
Page28
Question 75.
Ifappropriate, please provide alistofanyproducts specifically eligible forduty-free importation
forgovernmental use. Otherwise, please confirm thatanyproducts inOman ’stariff schedule
isimported dutyfreeifimported forGovernment use.
Reply
Allproducts imported forgovernment 'sownuse,andnotforcommercial resale, areexempt
from customs duties. There isnospecial orlimited listofproducts.
Question 76.
Does theGovernment (e.g.theMinistries, Government agencies) import onitsownaccount, or
doestheGovernment authorize non-governmental agencies, firms, orenterprises toimport for
theGovernment?
Reply
TheGovernment ofOman imports goods onitsown account. Itdoes notauthorize
non-governmental agencies, firms orenterprises toimport goods fortheGovernment oronitsbehalf.
Question 77.
How arethese products usedbytheGovernment ofOman? Please clarify that"goods imported
forGovernmental use"arelimited tothose items consumed bytheGovernment initsdaytoday
operations andnotinputs forfurther processing and/or forsaleonacommercial basis inOman.
Reply
Goods imported forgovernment ’sownuseareexempt fromcustoms duties. Thisexemption
doesnotapply togoods imported forcommercial resale ortogoods imported asinputs forfurther
processing andcommercial sale.
Question 78.
Specifically,doestheGovernmentofOmanimportanygoodsforfurtherprocessingordistribution?
Reply
No.
Question 79.
Ifso,(a)aretheyimported dutyfree; (b)dothese products compete withdomestic orimported
goods; and(c)please listthefirms, entities, orenterprises thateither import, process, ordistribute
goods onbehalf oftheGovernment ofOman.WT/ACC/OMN/5
Page29
Reply
Please seereply toquestion 78.
Question 80.
Ifso,howdoestheGovernment determine thequantities tobeimported andthepurchase price
ofthegoods? Does Oman, intend toliberalize thissystem aspartofitsWTO accession?
Reply
Please seereply toquestion 78.
Question 81.
Arethere anyother tariff exemptions, forexample fordiplomatic missions, goods imported as
humanitarian aidetc.? Ifso,please provide details ofthese exemptions.
Reply
Good imported bydiplomatic missions areexempt fromcustoms duties. Goods imported for
humanitarian andaregiven exemption onacasebycasebasis, depending upon theneedforaidand
credentials ofaidorganization.
(d) Other duties andcharges
Question 82.
Please identify anddescribe indetail, including amounts, allfeesandcharges forservices which
maybeassessed imported goods.
Reply
TheGovernment oftheSultanate ofOman doesnotimpose anyfeesorcharges inconnection
withimportation orexportation other thanimport duties.
PortServices Corporation, acommercial company inwhich theGovernment has35percent
share, levies thefollowing feesandcharges forservices rendered:
(a) Quay handling andstorage charges
(i) General cargo including bagged cargo other
thanfoodstuff, medicines andanimal feed.RialOmani 1.500 perFreight Ton
(Freight Tonwillbedetermined by
weight ormeasurement which everis
higher).
(ii) Foodstuff, medicines andanimal feed RialOmani 1.000per Freight Ton
(iii) IronandSteel bars, pipes, tubes, channels,
mesh, girders, sheets andangles.RialOmani 2.000 perFreight TonWT/ACC/OMN/5
Page30
(iv) Plywood, hardboard, chipboard, blockboard,
laminated board andother similar laminated
wood products incrates.RialOmani 2.000 perFreight Ton
(v) Loose Plywood RialOmani 3.000 perFreight Ton
(vi) Timber packed RialOmani 2.000 perFreight Ton
(vii) Timber loose RialOmani 3.000 perFreight Ton
(viii) Unpacked Vehicles, mechanical equipment,
trailers andcaravans
- under 2.5tons, perunit RialOmani 10.000
- 2.5tonstounder 5.0tons, perunit RialOmani 20.000
- 5tonsandover, perunit RialOmani 25.000
(ix) Heavy lifts(5tonsandover, excluding
vehicles andmechanical equipment)RialOmani 2.000 perFreight Ton
(x) Bagged cement andhydrated lime RialOmani 1.200 perFreight Ton
(b) Demurrage (forimport andexport cargo)
(i) Forthefirst10daysafterfinaldischarge or
before loading -forgeneral cargo, foodstuff,
medicines, ironandsteel, timber and
plywood.Free
(ii) Forthefirst7daysafterfinaldischarge or
before loading -forcargo other thanthatin
(i)above.Free
(iii) For21daysafterthefreeperiod:
- General cargo, foodstuff, medicines,
ironandsteel, timber andplywoodRialOmani 0.300 perFreight Ton
- Unpacked vehicles, mechanical
equipment, trailers andcaravans:
-under 5tons, perunit RialOmani 4.900
-5tonsandover, perunit RialOmani 9.900
- Bagged cement andhydrated lime RialOmani 0.200 perFreight Ton
(iv) After 21daysofthefreeperiod:
- General Cargo, foodstuff, medicines
ironandsteel, timber andplywoodRialOmani 1.200 perFreight Ton
- Unpacked vehicles, mechanical
equipment, trailers andcaravans:
-under 5tons, perunit RialOmani 15.000
-5tonsandover, perunit RialOmani 30.000
- Bagged cement andhydrated lime RialOmani 1.000 perFreight Ton
(c) Overtime
There arenoovertime charges -forcargo deliveries orreceipt ofexport cargo afterthenormal working
hours, provided anadvanced notice of24hours isgiven forthispurpose.
Ifanadvance notice of24hours isnotgiven thenovertime ischarged attherateofRial
Omani 0.500 fortheservices ofoneperson perhour(orpartthereof) subject toaminimum of2hours.WT/ACC/OMN/5
Page31
Question 83.
How aretheamounts ofthefeesandservice charges determined? Istheamount ofthefeesor
charges limited totheapproximate costoftheservice rendered?
Reply
Please seereply toquestion 82.Asstated therein, nofeesorcharges areimposed bythe
Government ofOman. Feesandcharges byacommercial company arelevied onthebasisofservices
rendered.
Question 84.
Does Oman apply anyduties orcharges within themeaning ofArticle VIIIoftheGATT 1994?
Reply
No.
Question 85.
What arethelevels ofthecharges applied inrespect ofstorage?
Reply
Please seereply toquestion 82.
Question 86.
Does Oman apply anyseasonal duties? Ifso,please provide fulldetails oftheproduct coverage,
leveletc.
Reply
No,Oman doesnotapply anyseasonal duties.
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
Question 87.
Alistofgoods subject toimport prohibitions orrestrictions isprovided inAnnex 7ofthe
Memorandum. Please identify those products inAnnex 7thatareprohibited andthose thatare
restricted, andprovide theGATT/WTO justification foreach oftheproduct prohibitions and
restrictions.
Reply
Alistidentifying prohibited andrestricted items giving WTO justification foreachisattached.WT/ACC/OMN/5
Page32
Question 88.
Foreachoftheproducts listed inAnnex 7,please indicate whether import istotally prohibited,
ormaytakeplace under certain circumstances.
Reply
Please seereply toquestion 87.
Question 89.
Please describe theprocedures forimplementing thebansandrestrictions forbothimported and
domestic goods.
Reply
Bans andrestrictions areimplemented attheborder bytheCustoms. TheCustoms willnot
allow theimport ofbanned goods, willseizeanddestroy these. Asforrestricted goods, theCustoms
willallow importation onlyifpermission oftheconcerned authorities isproduced totheCustoms.
Theproduction anddomestic circulation ofbanned goods inOman isprohibited.
Question 90.
Where importation ofaproduct listed inAnnex 7maytakeplace under certain circumstances,
please provide details oftherestrictions onimportation thatapply.
Reply
Information willbeprovided later; atthemeeting oftheWorking Party.
Question 91.
Foreachoftheproducts listed inAnnex 7,please provide thereason formaintaining animport
prohibition orrestriction.
Reply
Importation isprohibited orrestricted forreasons ofpublic morality andreligion andinorder
toprotect human, animal orplant lifeorhealth. ForWTO justification, please refer toreply to
question 87.
Question 92.
CanOman confirm thatitdoesnotintend inthefuture tointroduce anyother import prohibitions
except where these arejustified under WTO rules?
Reply
Yes,theSultanate ofOman confirms thatitwould notintroduce inthefuture anyimport
prohibitions orrestrictions which arenotjustified under theWTO rules.WT/ACC/OMN/5
Page33
Question 93.
According toparagraph 77-79 oftheMemorandum, import quotas arefixed bytheGovernment
ofOman formilk, eggs, fruits andvegetables. Please describe fully therestrictions thatapply
tothese products, including thesizeofthequotas ofeachproduct foreachofthepastfiveyears,
alistofthecountries thatsupplied thequotas foreach ofthepastfiveyears, thecriteria for
eligibility foraquota share, andadescription ofthemethod usedtoallocate thequotas.
Reply
Theinformation given inparagraphs 77-79 isamended totheextent thatimport quotas are
fixed onlyformilkandeggsforcertain months oftheyear. Forfruits andvegetables there isno
quota. Incertain years when there isover-supply ofcertain fruits andvegetables theirimport may
bebanned.
Thesizeofthequotas formilkandeggsforthelastfiveyears andtheactual import ofthese
from different countries willbesentlater.
Thequotas areglobal quotas; thesearenotallocated oncountry basis. Theallocation ofquotas
toimporters isonthebasis ofpastperformance.
Question 94.
Please provide ajustification forimposing quotas oneachoftheproducts mentioned inthissection.
Reply
Quotas/bans areimposed toprovide protection todomestic producers.
Question 95.
Foreachproduct, what have thelevels ofthequotas been forthethree most recent years?
How arethese quotas allocated?
Reply
Please seereply toquestion 93.
Question 96.
What areOman ’splans toeliminate these seasonal quota restrictions?
Reply
TheSultanate ofOman would replace these quotas bytariffs, uponitsaccession totheWTO.
Question 97.
Please describe theorganizational structure ofthePublic Authority forMarketing Agricultural
Produce, which isresponsible forthedetermination oftheannual import quota forfruits and
vegetables.WT/ACC/OMN/5
Page34
Reply
TheGovernment hasalready taken adecision toprivatise thePublic Authority forMarketing
Agricultural Produce (PAMAP). Thedecision isunder implementation. Asmentioned inreply to
question 93,there isnoquota onimport offruits andvegetables.
Question 98.
How arethese restrictions enforced attheborder? Does Oman maintain anyinternal limits on
production ofthese products?
Reply
Therestrictions areimplemented bytheCustoms. There arenointernal restrictions onthe
production ofmilkandeggs.
Question 99.
CanOman confirm thatitdoesnotintend inthefuture tointroduce anyother import quotas?
Reply
Yes,Oman canconfirm thatinthefuture itwould notintroduce anyother import quotas.
Question 100.
QuantitativerestrictionsonimportsofagriculturalproductsareprohibitedbytheWTOAgreement
onAgriculture. Inthecontext ofWTO accession, Oman ’squotas must beeliminated andreplaced
withWTO-consistent means ofprotection.
Reply
Oman would replace these quotas bytariffs upon itsaccession totheWTO.
Question 101.
CanOman confirm thatitdoesnotintend inthefuture tointroduce restrictive import licensing?
Reply
Yes,Oman canconfirm thatinthefuture itwould notintroduce anyrestrictive import licensing.
Question 102.
With respect toquantitative import restrictions inparagraph 77,78 and79,import quotas are
applied tomilk, eggs, fruits andvegetables. Please explain howtheimport quotas areimplemented.
Reply
Please seereply toquestion 93.WT/ACC/OMN/5
Page35
Question 103.
Inthecasewhere import licensing method isapplied, howwillOman ensure transparency and
impartiality regarding theeligibility ofapplications, thecriteria ofissuance andsoon?
Reply
Transparency isensured byinforming allconcerned about thesizeofquota anditsopening
date. Impartiality isensured byallocating quotas onthebasis ofpastperformance.
Question 104.
What arethejustifications fortheMinistry ofAgriculture andFisheries ’andthePublic Authority
forMarketing Agricultural Produce ’s(PAMAP ’s)annual andseasonal application ofquantitative
importrestrictionstomilk,eggs,fruitandvegetables.(WT/ACC/OMN/2,pages12-13,para77-79).
Arethefindings ofstudies conducted tothisendconsistent withGATT Article XI?
HowdoesOman plantoeliminate import quotas onthese products inlinewiththeWTO Agreement
onAgriculture?
Reply
Please seereplies toquestions 93and94.Asstated inreply toquestion 93,noimport quotas
arefixed forfruits andvegetables.
Theimport quotas onmilkandeggswillbereplaced bytariffs. Import offruits andvegetables
willalsoberegulated infuture bytariffs.
Question 105.
Could Oman clarify whether theprohibition onimported petroleum products, incircumstances
where suchproducts canbysupplied bytheOman OilRefinery inquantities sufficient tosatisfy
domestic requirements (seeWT/L/33, page 4,III(d)), remains inoperation?
Ifso,when isthisprohibition likely tobelifted (bearing inmind thatitconflicts withGATT
Article IIIandXI)?
Reply
Theprohibition remains inoperation.
Oman would dowhatisnecessary tocomply withitsWTO obligations.
Question 106.
Please identify bytariff lineorcategory theimported products thataresubject tolabelling
requirements. Please describe these requirements andwhytheyareimposed withspecial reference
tohowtherequirements areapplied andenforced withregard tosimilar domestic products.WT/ACC/OMN/5
Page36
Reply
Allprepared, prepackaged foodstuff items aresubject tolabelling requirements. Thelabelling
requirements areaccording toGCC Standard forLabelling ofPrepackaged Foods. These consist of
disclosing thecontents ofitemandthedateofmanufacture andexpiry date. Thelabelling shallbe
inEnglish andinArabic. Thepurpose oflabelling requirements isconsumer protection.
Same labelling requirements areenforced fordomestic products through periodic andsurprise
inspection offactories andsupermarkets bythestaffofDGSM.
Question 107.
Inaddition totheimport restrictions andprohibitions thatapply totheproducts listed inAnnex 7
oftheMemorandum andthequota restrictions described inpares 77-79, please indicate anyother
quantitative, security, orprotective restrictions applied toimports, listing theitemaffected, the
nature oftherestrictions, andhowitisenforced. Please indicate theprovisions oftheWTO that
cover these restrictions.
Reply
No,there arenoother prohibitions orrestrictions.
Question 108.
Weunderstand thatOman applies standards andsanitary/phytosanitary requirements toimports.
Inaddition, Oman administers quota restrictions oncertain agricultural imports. Wedonot
understand how Oman canimplement such asystem without recourse toimport licensing
procedures.
Reply
Questionnaire onimport licensing procedures isunder preparation andwillbesentlaterto
theWTO.
(h) Customs valuation
Question 109.
Could Oman elaborate onhowitregulates non-tariff border restrictions suchasthose described
above, describing theprocedures fortheimplementation oftherestrictions andtheallocation
oftheimport quotas intheformofaresponse tothequestionnaire onImport Licensing Procedures?
Reply
Questionnaire onimport licensing procedures willbesubmitted later.
Question 110.
What isthelegislative basis forOman customs valuation system?
Please provide theWorking Party withacopy oftherelevant piece oflegislation.WT/ACC/OMN/5
Page37
Reply
Oman doesnothavewritten lawsorregulations oncustoms valuation system.
Question 111.
According toparagraph 83oftheMemorandum, thesystem ofvaluation isnotbased inentirety
ontheWTO Customs Valuation Agreement orontheBrussels Definition ofValue. Inaddition,
theinformation contained inAnnex 4confirms thatlegalregime forcustoms valuation inOman
doesnotcover alloftheprovisions oftheWTO Agreement. Please provide intranslation the
regulations usedbyOmani customs officials inapplying thevaluation provisions oftheCustoms
Lawtoimports.
Reply
There arenowritten regulations oncustoms valuation.
Question 112.
Please identify anddescribe those aspects ofthecustoms valuation regime which arenotin
conformity withtheWTO Customs Valuation Agreement.
Reply
TheCustomsValuationregimeofOmandoesnothaveprovisionscorrespondingtothefollowing
provisions oftheWTO Agreement onCustoms Valuation:
- thereisnodetailed provision corresponding toparagraphs 1and2Article 1oftheAgreement
onCustoms Valuation, although thecustoms valuation system ofOman isbased ontransaction
value;
- thereisnoprovision corresponding toArticles 2and3oftheAgreement onCustoms Valuation;
- there isnoprovision corresponding toArticle 5oftheAgreement onCustoms Valuation;
- there isnoprovision corresponding toArticle 6oftheAgreement onCustoms Valuation;
- there isnoprovision corresponding toArticle 7oftheCustoms Valuation Agreement;
- there isnoprovision corresponding toArticle 8oftheCustoms Valuation Agreement.
Question 113.
Does Oman anticipate anyproblems inapplying theWTO Customs Valuation Agreement infull
from thedateofaccession totheWTO?
Reply
TheSultanate ofOman would notbeabletoapply theAgreement onCustoms Valuation from
thedateofaccession totheWTO asitwould havetomake newelaborate lawsandregulations based
ontheWTO Agreement onCustoms Valuation; itwould havetoprepare manuals, administrative
procedures andinstructions toimplement theAgreement; itwould havetotrainthecustoms stafftoWT/ACC/OMN/5
Page38
apply theAgreement anditwould havetotrainandacquaint theimporters andcustoms brokers in
thenewsystem ofvaluation. Allthiswould beamonumental, timeconsuming taskforasmall country
likeOman anditwould require timetodothat. InfactOman mayneedtechnical assistance from
theWTO andfromitsmember countries inorder toimplement theAgreement onCustoms Valuation.
Question 114.
Could Oman provide copies ofitslawsgoverning customs valuation?
HowisOman'ssystemdifferentfromtheWTOCustomsValuationAgreement(WT/ACC/OMN/2,
page 13,paragraph 83andpage 43,Annex 4)?
Does Oman haveanyintention toamend itslegislation prior toaccession toenable ittofullymeet
WTO customs valuation obligations asfrom thedateofaccession?
Reply
Oman doesnothavewritten lawsoncustoms valuation.
Please refertoreply toquestion 112concerning differences between Oman 'ssystem andthe
WTO Agreement onCustoms Valuation.
Asstated inreply toquestion 113,itwould notbepracticable forOman toimplement theWTO
Customs Valuation Agreement asfrom thedateofaccession.
Question 115.
Please describe indetail theprocess forcalculating import value when transaction value is
determined nottoapply asthebasis forcustoms valuation.
Reply
Ifthetransaction value isnotaccepted, thevalue ofimported goods isdetermined onthebasis
ofinvoice price ofidentical orsimilar goods imported earlier.
Question 116.
Does Oman useminimum prices inthecalculation ofimport value? Please describe the
circumstances andprocess ofapplying such minimum prices, andlist,bytariff lineitem, any
products forwhich thisprocedure isrequired orcommonly used. Please include theminimum
price applied andhowitisdetermined.
Reply
No,Oman doesnotuseminimum values.
Question 117.
Weappreciate Oman 'sfrankness indescribing thelimitations ofitscurrent valuation system
vis-à-vis theWTO. Wewould bepleased towork withOman tofacilitate adoption ofaWTO-based
system. Please describe thelegislative andadministrative steps thatwillberequired tobring
thecustoms valuation system intofullconformity withWTO requirements, e.g., toenact theWT/ACC/OMN/5
Page39
provisions oftheAgreement inthelawofOman, andprovide atimetable foraccomplishing this
prior toWTO accession.
Reply
TheSultanateofOmanappreciatestheofferofassistanceinimplementationoftheWTOCustoms
Valuation Agreement. Forreasons explained inreply toquestion 113,itwould notbepracticable
forOman toimplement theWTO Customs Valuation Agreement fromthedateofitsaccession tothe
WTO. TheSultanate ofOman would require anadequate transition period forthispurpose.
Question 118.
Concerning cases where theclassification, valuation, ordutyassessment bycustoms officials is
disputed byimporters orexporters: please describe more fully theavenues andprocedures for
appeal available, andprovide copies ofregulations orlaws, intranslation, pertaining totheappeals
process.
Reply
There arenowritten rulesorregulations concerning appeals incases ofcustoms classification,
valuation orassessment ofduty. However, anaggrieved party mayapproach thecustoms officer In
charge oftheport,airport orlandborder station. Ifheisnotsatisfied withthedecision oftheofficer
Incharge, hemaygoinappeal totheDirector General ofCustoms.
Question 119.
IstheAuthority forSettlement ofCommercial Disputes usedinsuch cases? Isitindependent
oftheCustoms authority? Howmany customs valuation, classification, ordutyassessment appeals
hasthisauthority consider inthepastthree years? What wastheaverage duration oftimefrom
initiation oftheappeal ofvaluation ordutyassessment until thefinal resolution ofthedispute
bytheAuthority fortheSettlement ofCommercial Disputes?
Reply
No
(j) Pre-shipment inspection
Question 120.
WillOman undertake that,should anypreshipment inspection system beintroduced inthefuture,
theoperation ofsuchasystem willbeconsistent withtherelevant WTO Agreements, inparticular,
onPreshipment Inspection andCustoms Valuation?
Reply
Yes,theSultanate ofOman undertakes thatincaseitintroduces anypreshipment inspection
system inthefuture, itsoperation willbeconsistent withtheprovisions andrequirements ofWTO
Agreements onPreshipment Inspection andCustoms Valuation.WT/ACC/OMN/5
Page40
(k) Application ofinternal taxes onimports
Question 121.
CanOman confirm thatitdoesnotapply anyinternal taxes suchasVAT orexcise duty?
Reply
Itisconfirmed thatOman doesnotapply anyinternal taxes suchasVAT, salestaxorexcise
duty.
Question 122.
CanOman confirm thatthere arenointernal taxes, suchasvalue added taxes, excise taxes or
sales taxes imposed onproducts soldwithin Oman (WT/ACC/OMN/2, page13,paragraph 90)?
Ifsuchtaxes exist, dotheyapply equally toimported anddomestic products?
Reply
Itisconfirmed thatOman doesnotapply anyinternal taxes, suchasvalue added taxes, excise
duties orsalestaxes either onimported goods orondomestically produced goods.
Question 123.
According toparagraph 90oftheMemorandum, there arenointernal taxes onimports within
themeaning ofArticle IIIofGATT 1994. Inaddition, there isnoother information in
WT/ACC/OMN/2 onother aspects ofOman 'staxation system. Please explain thenature ofthe
qualifying phrase inparagraph 90,"within themeaning ofArticle IIIoftheGATT 1994".
Reply
Thequalifying phrase inparagraph 90oftheMemorandum related tointernal taxesapplicable
togoods suchasVAT, salestaxandexcise duty. Article III,weunderstand, doesnotdealwithdirect
taxes.
Question 124.
Without regard toArticle IIIofGATT 1994, please describe thesystem oftaxation applied by
theSultanate toindividuals andentities, e.g.,income tax,profits tax,payroll taxes, VAT orexcise
taxes, stamp taxes orother indirect taxes oncommerce. (Note: IfOman doesnothave certain
taxregimes, please confirm this.).
Reply
TheSultanate ofOman doesnotapply excise taxes, salestaxes, VAT, stamp duties andpayroll
taxes.
Itonlyapplies income tax.(Details given inreply toQuestion 125).WT/ACC/OMN/5
Page41
Question 125.
Foreachtaxtypeorsystem listed, describe thenature andscope ofthetaxes, itslevelofincidence,
andtheproducts and/or persons towhich theyareapplied.
Reply
Theonlytaxapplied bytheSultanate ofOman (inaddition tocustoms duties) istheincome
tax.Theincome taxinOman applies onlytobusinesses. There isnopersonal income taxinOman.
Income taxislevied ontheprofits ofbusinesses which areoperating inOman. Therateoftaxvaries
according tothelevelofforeign ownership, asfollows:
- forOmani businesses withnoforeign participation, thetoprateoftaxis7.5percent;
- businesses which haveOmani participation oflessthan10percentareliable fortaxonasliding
scale withamaximum rateof50percent;
- Omani companies withforeign participation of90percentorlessaretaxed asfollows:
(a) PublicJoint-StockCompaniesaresubjecttoamaximumtaxrateof7.5percentprovided
that(i)51percentcapital isowned byOmani citizens and/or companies, and(ii)the
company hasoffered atleast40percentofitsshares forpublic subscription. Incase
conditions (i)and(ii)arenotsatisfied, thetaxratevaries from 15percentto
25percent.
(b) Other companies, i.e.other thanjoint-stock companies aresubject totaxratesranging
from 15to25percent.
- foreign companies without apermanent establishment inOman andwhich receive royalties
orfeesformanagement, lease ofmachinery andequipment, know-how orresearch and
development frombusinesses resident inOman, aresubject toarateoftaxof10percenton
turnover;
- income arising fromtheretail saleofgasoline andpetroleum products istaxed at55percent.
Oilexploration andproduction companies aregenerally taxed under special rules setoutin
therelevant concession agreement.
Question 126.
Please identify anytaxes thatareapplied toimported goods orforeign persons, butnottodomestic
goods orpersons. Please identify anytaxes forwhich therateapplied toimported goods oron
foreign persons isdifferent from therateapplied todomestic goods orpersons.
Reply
There arenointernal taxesapplicable either toimported goods ortodomestic goods. Similarly
there arenotaxes applicable toforeign individuals ortoOmani nationals.
Asfordirect taxes oncompanies, please seereply toquestion 125.WT/ACC/OMN/5
Page42
Question 127.
Please indicate ingeneral terms thepercentage ofthetotalGovernment revenue provided bythese
taxes, andbytariffs.
Reply
Thepercentage oftotalgovernment revenue accounted forbycustoms duties andbyincome
taxonbusinesses was1.4percentin1991 and2.5percentin1995.
(l) Rules oforigin
Question 128.
According toparagraph 91oftheMemorandum, Oman usesrules oforigin forimports from
GCC countries. TheMemorandum doesnotappear todescribe howOman determines rules of
origin foruseinnon-preferential commercial policy instruments (some ofwhich maynotyetapply
inOman), suchasapplication ofmost-favoured nation treatment, anti-dumping andcountervailing
duties, safeguard measures, origin marking requirements, discriminatory quantitative restrictions
ortariff quotas, andgovernment procurement andtrade statistics. Please provide copies, in
translation, oflaws, decrees, orregulations governing therules oforigin applied inOman, as
theyareapplied tobothpreferential andnon-preferential trade.
Reply
TheSultanate ofOman doesnotuseanyrules oforigin fornon-preferential trade.
Question 129.
Please describe Oman 'srules oforigin regime foruseinnon-preferential commercial policy
instruments, noting where current provisions conform (ornot)withtherequirements oftheWTO
Agreement onRules ofOrigin.
Reply
Oman hasnorules oforigin fornon-preferential trade.
Question 130.
Weseekimplementation ofWTO provisions onRules ofOrigin inthetrade regime ofOman.
Reply
TheSultanate ofOman upon accession totheWTO would abide byitsobligations under all
WTO Agreements including theAgreement onRules ofOrigin.
Question 131.
Isproof oforigin required forproducts originating from allcountries oronlyfrom those countries
exporting toOman under apreferential scheme?
Where proof oforigin isrequired, what constitutes thatproof?WT/ACC/OMN/5
Page43
Reply
Proof oforigin isrequired onlyforproducts originating fromGCC countries which arepart
oftheGCC free-trade area.
Certificate oforigin isconsidered theproof oforigin.
Question 132.
How isthecountry oforigin currently ascertained?
Reply
Itisaccepted onthebasis ofacertificate oforigin.
Question 133.
Oman seems onlytoapply preferential rules oforigin inrelation toimports from GCC countries
(WT/ACC/OMN/2, page 14,paragraph 91).
Inthelightofthis,howwillOman administer obligations itwillassume under theAgreement
onRules ofOrigin?
What timeframe doesOman envisage fordevelopment andimplementation ofstandards inthis
area?
Reply
TheSultanate ofOman atpresent doesnothavelegislation onanti-dumping, countervailing
duties andsafeguards. When ithassuchlegislation andwould feeltheneedtoapply suchmeasures,
itwould frame rules oforigin forthatpurpose. Indoing soitwould strictly follow theprovisions
oftheAgreement onRules ofOrigin. Thetiming ofthismaybesometime afterOman accedes to
theWTO.
(m-o) Anti-dumping, countervailing duty, safeguard regime
Question 134.
Oman doesnotcurrently have anylawsorregulations covering anti-dumping, countervailing
measures orsafeguards (WT/ACC/OMN/2, page 14,paragraphs 92-94).
CanOman confirm that,intheabsence oflegislation, there isnoofficial orMinisterial discretion
toimpose suchmeasures?
Does Oman intend tointroduce lawstogovern these measures prior toitsaccession totheWTO?
Ifso,willsuchlawsbemade available totheWorking Party forexamination?
Reply
Itisconfirmed thatOman hasnoofficial orMinisterial discretion toimpose anti-dumping,
countervailing duties orsafeguard measures.WT/ACC/OMN/5
Page44
TheSultanate ofOman would introduce lawsinthese areas afteritsaccession totheWTO.
Theproposed lawswould beinstrictconformity withtheprovisions oftherelevant WTO Agreements.
Atanappropriate time, Oman would submit lawsindraftform totheWTO before finally enacting
these.
Question 135.
Paragraphs 92-94 state thatOman hasnolaws, decrees, orregulations ontheapplication of
anti-dumping, countervailing duty, orsafeguards measures. HowdoestheGovernment ofOman
intend toproceed todevelop appropriate legal basis toimplement theprovisions oftherelevant
WTO Agreements? IfOman intends toapply anysuchrestrictions after accession totheWTO,
itshould beinthecontext ofalegal regime consistent withtheprovisions ofWTO Agreements.
Reply
Please refertoreply toquestion 134.
Question 136.
Could Oman please confirm thatnosafeguard legislation isinforce/in preparation?
Ifthisisnotthecase, please provide acopyofitslegislation/draft legislation inaWTO language.
Reply
Yes,itisconfirmed thatOman doesnothaveasafeguard legislation atpresent, norisitunder
preparation.
2. Export Regulation
(a) Registration requirements forengaging inexporting
Question 137.
Paragraph 66noted that"any company orindividual whohasregistered withtheMinistry of
Commerce andIndustry under therelevant lawscanengage inimportation". Doesthisalsoapply
forexporters, i.e.,must acompany orindividual beregistered withtheMinistry ofCommerce
andIndustry "under therelevant laws" inorder toexport?
Reply
Anindividual oracompany inorder toengage inanybusiness activity should getregistration
inthecommercial register. There isnoseparate orspecific registration required forexport trade.
Question 138.
Howdotheregistration andanyother requirements toexport differ fromthose for(a)importation,
and(b)domestic commerce anddistribution?
Reply
Asstated inreply toquestion 137,there isnoseparate orspecific registration forengaging
inexport trade.WT/ACC/OMN/5
Page45
Question 139.
What roledoescommercial agency playinexporting?
Reply
None
Question 140.
Please confirm thatanynatural orlegal person, whether ornotOmani, canengage directly in
exportation activities.
Reply
Anindividual oracompany must beregistered forengaging inbusiness activities. Those
individuals orcompanies which aresoregistered canengage inexport trade.
Inorder togetregistration, anindividual mustbeanOmani national, notlessthan18years
ofage,withhismain place ofbusiness inOman.
Theprocedure forregistration ofacompany isdescribed inreply toquestion 53.
(b) Customs tariff nomenclature, types ofduties
Question 141.
Paragraph 97states thatthere arenoexport duties. Does Oman taxexports, e.g.,ofpetroleum?
Reply
No,there arenoexport duties onpetroleum.
(c) Quantitative export restrictions, including prohibitions, quotas andlicensing systems
Question 142.
What isthereason forrequiring theapproval oftheMinistry ofAgriculture andFisheries before
being abletoexport dateseedlings orcertain fishspecies?
Reply
Themainreason forrequiring theapproval oftheMinistry ofAgriculture andFisheries before
being abletoexport dates seedlings isthepreservation oflocalspecies andvarieties.
Thejustification forrestrictions onexport offishisthefearofextinction ofsome rarefish
species ofhigheconomic value which arefacing threat ofoverexploitation inOmani waters. Toachieve
thisgoal, thefishing season forthese species hasbeenfixed toguarantee theirbreeding during the
closed season.WT/ACC/OMN/5
Page46
Question 143.
Please listthespecies offishwhich require Ministerial approval before exportation.
Reply
Only three species offisharesubject toexport restrictions during afixed period oftheyear
i.e.during breeding andreproduction periods.
Thethree species are:
- lobster;
- abalone;
- shark.
Question 144.
Please explain howonegoesabout obtaining permission toexport dateseedlings andcertain fish
species.
Reply
(a) Exportation ofdateseedlings isprohibited.
(b) Toexport certain fishspecies theprocedure isasfollows:
- exporting company should beregistered Omani company performing fishtrade and
export activity andholding alicence from thecompetent authority;
- fishtobeexported should bealready registered asstock caught bythecompany before
theendofthefishing season asstipulated foreachspecies intheExecutive Regulations
oftheMarine Fishing Law;
- fishspecies tobeexported should becomplying withthespecifications andconditions
determined bytheMinistry.
Question 145.
What criteria areusedbytheMinistry ofAgriculture andFisheries indeciding whether ornot
togrant thispermission?
Isthere anyquantitative element tothisexport restriction? Ifso,please detail andexplain why.
Reply
Thefollowing conditions andcriteria arefollowed:
- theexporting company should beregistered Omani company performing fishtrade
andexport activity andholding alicence from thecompetent authority;WT/ACC/OMN/5
Page47
- fishtobeexported should bealready registered asstock caught bythecompany before
theendofthefishing season asstipulated foreachspecies intheExecutive Regulations
oftheMarine Fishing Law;
- fishspecies tobeexported should becomplying withthespecifications andconditions
determined bytheMinistry;
- there isnoquantitative limit.
Question 146.
Could Oman elaborate ontheMinistry ofAgriculture andFisheries 'preconditions fortheapproval
forexport ofdateseeding andcertain species offish(WT/ACC/OMN/2, page14,paragraph 99)?
Dothese preconditions directly orindirectly constitute export quotas which areinconsistent with
GATT Article XI?
Reply
Please seereplies toquestions 144and145. Wedon'tthink therestriction onexport offish
amounts toaquota. Therestriction ismeant toavoid over-exploitation ofraremarine resources.
Question 147.
Does Oman intend tomake useof(a)export prohibitions or(b)export quotas inthefuture for
anyproducts?
Reply
No,Oman would notuseanyexport prohibitions orexport quotas inconsistent withtheWTO
rules.
(f) Export financing, subsidy andpromotion policies
Question 148.
Does Oman maintain orhave theintention ofintroducing inthefuture, anyexport subsidies?
Reply
TheSultanateofOmandoesnotmaintainanyexportsubsidiesandhasnointentionofintroducing
export subsidies inthefuture.
Question 149.
Istheinterest subsidy scheme (WT/ACC/OMN/2, page15,paragraph 103)considered byOman
toconstitute anexport subsidy within themeaning oftheAgreement onSubsidies and
Countervailing Measures andtheAgreement onAgriculture?WT/ACC/OMN/5
Page48
Reply
No,wedonotconsider theinterest subsidy scheme asanexport subsidy asitisnotcontingent
onexports.
Question 150.
According toparagraph 103oftheMemorandum, theExport Guarantee andFinancing Unit,
oftheOman Development Bank, assists manufacturers intheirborrowing withtheinterest subsidy
scheme,aswellasexportfinancing.IstheOmanDevelopmentBankapublicly-ownedorcontrolled
entity? DoestheGovernment ofOman provide anyform offinancial assistance totheDevelopment
Bank, forproviding insurance cover, orforassisting manufacturers intheircommercial borrowing
withtheinterest subsidy scheme?
Reply
TheOman Development Bank isanOmani shareholding company established under aRoyal
Decree. Theshare capital oftheBank currently stands atRialOmani 10million, ofwhich the
Government ofOman holda54percentshare. TheBank works oncommercial linesinitsoperations.
TheExport Guarantee andFinancing Unit(EGFU) operates theexport credit insurance scheme
andtheinterest subsidy andexport financing schemes. TheUnitwaslaunched withfullfunding from
theGovernment oftheSultanate ofOman. However, initsoperations oftheexport credit insurance
scheme, theUnitcharges premium rateswhich areadequate tocover thelong-term operating costs
andlosses ofthescheme.
Thefinancing oftheinterest subsidy scheme andtheexport financing scheme isexplained in
reply toquestion 151.
Question 151.
Please describe fully theinterest subsidy andexport financing schemes, including thescope of
coverage, eligibility criteria, sources offunding, andinterest rates charged vis-à-vis commercial
rates ofinterest oncomparable loans.
Reply
Since 1991, theEGFU hasbeenproviding assistance toOmani exporters withthecostof
financing thepostshipment period ofexport credit. Inmany cases thegross interest rateisreduced.
Attheendofeachmonth thefinancing Bankmakes aclaim onEGFU fortheappropriate subsidy which
iscredited tothecustomer 'saccount within afewdaysoftheclaim.
Themain criterion foreligibility isthattheexported goods should meet avalue added
requirement of25percentormore, ofthetotalsalevalue, bywayoflabour costs, interest, depreciation,
taxes andnetprofit. Thesecond criterion foreligibility isthatthedebtmust becredit insured with
theEGFU.
TheEGFU hasarranged withmajor Omani commercial banks whereby theywillgrant
post-shipment advance inRials Omani ataconcessional interest rateof7percentperannum toall
exporters whoarecredit insured bydiscounting theirexport bills. However, thepost-shipment advance
shallbegranted foraperiod notexceeding 180daysofeachexport bill.WT/ACC/OMN/5
Page49
Asforexportfinancingscheme,thecommercialbankswouldnotgrantaloanwithoutacollateral
soastocover theirriskagainst non-payment. Theexport credit insurance policy issued bytheEGFU
toanexporter canbeassigned toacommercial bank, asacollateral, tosecure aloan. Thus onthe
strength oftheinsurance policy, theexporter canenjoy improved financial facilities.
Question 152.
Please confirm thatOman hasnoexport subsidy orfinancing policies other thantheinterest subsidy
andexport financing schemes.
Reply
Itisconfirmed thatOman hasnoexport subsidy orfinancing policies.
Question 153.
Concerning raw-material pricing fortheproduction ofexports, what isthepolicy ofOman
regarding feedstock pricing inthepetrochemical sector and,particularly forpropane, butane,
andnaphtha? What isOman 'spolicy onpricing forexport andfordomestic deliveries of
feedstocks?
Reply
Thepricing offeedstocks forexport projects isbased ontheprinciple thatfeedstocks should
notbesubsidised. Thus, thefulldevelopment anddelivery costs offeedstocks totheexport sector
mustberecovered withamargin toreflect, atleast, thecostofcapital. Inapplying this,consideration
isgiven to"Value Added" generated bytheindividual projects totheover-all economy ofOman.
AsofJanuary 1995, alldomestic deliveries offeedstocks to,forexample, theenergy sector
andforwater desalination, arepriced inaccordance withtheEnergy Council directive, setting this
price at$1.50/mscf. Thisprice isbased on1/12th ofcrude oilprice of$18/bbl (approximately 1/2
oftheenergy equivalent ofcrude price at$18/bbl).
Question 154.
Please provide copies ofanylaws, regulations ordecrees, intranslation, applicable tofeedstock
pricing.
Reply
There arenolaws, regulations ordecrees.
Question 155.
DoestheGovernment ofOman provide butane orother feedstocks fortheproduction ofexported
MTBE atprices lower thanotherwise found inthedomestic market? Does theGovernment of
Oman sellbutane tothird-party buyers forexport atprices equal tothose charged todomestic
MTBE producers?
Reply
There isnodomestic production ofMTBE.WT/ACC/OMN/5
Page50
Question 156.
Does Oman intend toadopt policies inthefuture toencourage increased production andexports
ofMTBE?
Reply
Since there isnoproduction, there isnoprogramme ofincreased production.
(h) Import dutydrawback scheme
Question 157.
Import dutyisrefunded ifimported goods arere-exported inthesame form (WT/ACC/OMN/2,
page 15,paragraph 105).
Weunderstand therefore thatdutydrawback isnotavailable ifimported goods areincorporated
inother goods oraretransformed insome other way. Isthiscorrect?
Towhat extent must agood betransformed before itisdisqualified fordutydrawback?
Reply
Yes,dutydrawback isnotavailable ifimported goods areincorporated inother goods orare
transformed insome other way.
Goods areconsidered astransformed iftheylosetheircharacter oridentity. Minor changes,
without affecting thecharacter ofgoods, willnotmake them ineligible fordrawback.
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policies
Question 158.
Para 106oftheMemorandum outlines theobjectives ofOman 'spolicies toexpand theindustrial
sector. Itrefers to"theencouragement ofexport oriented industries"; the"integration and
strengthening ofinter-linkages intheindustrial sector"; theencouragement of"resource-based
heavy industries.."; "optimum utilization oftheavailable national resources..."; andtoOman 's
intent to"adopt import substitution policy toselective industries". Please describe themeasures
andmeans thatOman intends tousetogiveeffect toitsimport substitution policy, andtheir
relationship toWTO provisions. Which industries havebeenselected fortheimport substitution
policy? How willthese measures apply toforeign firms thathave invested inOman?
Reply
Theobjectives oftheindustrial policy mentioned inparagraph 106oftheMemorandum, and
quoted inthisquestion, aregeneral, indicative objectives. There arenospecific targets fixed forthese
objectives norarethere specific measures orparticular incentives foreachofthese objectives.
TheincentivesprovidedtoindustriesbytheGovernmentoftheSultanateofOmanarementioned
inparagraph 110oftheMemorandum. These are:WT/ACC/OMN/5
Page51
(i) freesurvey ofindustrial investment opportunities andsoftloans forconducting pre-feasibility
studies;
(ii) provision ofinterest-free loans bytheGovernment andsoft-term loans byOman Development
Bank (Bank structure described inreply toquestion 150);
(iii) exemptionfromcustomsdutyonimportofmachinery,equipment,sparepartsandrawmaterials.
Adetailed description ofinterest-free andsoft-term loans isgiven inreplies toquestions 171
and172. These areavailable toallindustries without anydiscrimination. Thesoft-term loans are
available onthesame terms tobothdomestic andforeign companies (i.e.foreign companies which
aredulyestablished inOman under theCompanies Lawand/or theForeign Capital Investment Law).
Interest-free loans areavailable onthesame terms toallOmani companies andtoforeign
companies inwhich theOmani share isnotlessthan75percent.
Exemption from customs dutyonmachinery, equipment andspare parts isavailable toall
industries andtoallcompanies whether domestic orforeign, without discrimination. Exemption from
customs dutyonrawmaterials isavailable foraninitial period offiveyears, extendable fortwofurther
five-year terms. Thisexemption isalsoavailable onthesameterms toallindustries andtoallcompanies,
domestic orforeign. (Foreign companies ofcourse arethose dulyestablished inOman).
Theincentive offreesurveys andsoftloans arealsoavailable toallindustries andtoall
companies, domestic andforeign.
There arenospecific measures forimport substitution industries, norhaveanyindustries been
selected under thispolicy. Asdescribed above, theincentives areavailable toforeign companies, except
forinterest-free loans which areavailable onlytothose foreign companies inwhich Omani share is
nolessthan75percent.
Question 159.
How doesOman intend toencourage export oriented industries?
Reply
Pleaseseereplytoquestion158.Therearenoparticularincentivesforexportorientedindustries.
Only general export promotion measures aretaken tofacilitate exports.
Question 160.
Please describe allincentives used bytheGovernment ofOman toencourage export-oriented
industries. What industries have been identified forthereceipt ofthese incentives? What role
would export subsidies, taxexemptions, interest-free loans, andsubsidized landandequipment
playinthisexport initiative? Areforeign firms eligible forthese incentives under thesame terms
andconditions asdomestic firms?
Reply
Please seereplies toquestions 158and159. There arenospecific measures ofthetypes like
export subsidies, taxexemptions, interest-free loans etc.WT/ACC/OMN/5
Page52
Question 161.
Please describe allincentives used bytheGovernment ofOman tointegrate andstrengthen
inter-linkages intheindustrial sector. Arethese measures available toforeign invested firms?
Reply
Please seereply toquestion 158.
There arenospecific measures orincentives tointegrate orstrengthen inter-linkages inthe
industrial sector.
Question 162.
Please describe allincentives used toencourage resource-based heavy industries andhigh
value-added lightindustries.
Reply
Please seereply toquestion 158.
There arenospecific measures orincentives toencourage resource-based heavy industries and
highvalue-added lightindustries.
Question 163.
HowdoesOman intend to"encourage resource-based heavy industries andhighvalue-added light
industries"?
Reply
Please seereply toquestion 162.
Question 164.
Please describe allmeasures usedtoencourage theuseofdomestically-produced rawmaterials
andintermediate products, particularly oilderivatives andpetrochemicals. What incentives does
Oman provide orintend toprovide toencourage investment infacilities used toproduce
petrochemicals, suchasMTBE andmethanol?
Reply
Nomeasures orincentives areusedforthispurpose, nordoesOman plantouseanyparticular
measures orincentives.
Question 165.
How doesOman decide which enterprises should benefit from "exemption from customs duty
onimport" ofcertain items?
Doanyenterprises currently benefit from thisincentive?WT/ACC/OMN/5
Page53
Reply
Allindustrial enterprises areeligible forthisexemption, including alldomestic andforeign
companies onthesame basis.
Many, many enterprises arebenefiting from thisconcession.
Question 166.
Please provide more details about Oman 'sobjective toadopt import substitution policies toselective
industries. What industries willbetargeted? What form willthese policies take?
Reply
Please seereply toquestion 158.
Question 167.
Could Oman provide more information about thenon-tariff measures which areapplied toexpand
theindustrial sector, inparticular theimport substitution policies applied toselective industries
(WT/ACC/OMN/2, page 15,paragraph 106)?
Reply
Please seereply toquestion 158. There arenospecific measures orincentives. There isa
provision intheLawontheOrganization andEncouragement ofIndustry (Article 19,paragraph 4)
which empowers theGovernment toincrease customs tariff onimported goods which aresimilar to
domestically produced goods, ortoprohibit orrestrict theirimportation. However, thisisadormant
provision andhasnotbeenusedforthelast15years.
Question 168.
AsOman intends toincrease substantially itsmanufacturing sector over thenext 25years
(WT/ACC/OMAN/2, page 15,paragraph 108)canOman giveassurances thatthiswillbedone
inways consistent withWTO obligations, including those relating tosubsidies?
Reply
TheSultanate ofOman canconfirm, andassure, thatitspolicies willfullyconform totheWTO
rules, including rules onsubsidies.
Question 169.
Wewould appreciate more detail onOman 'sprovision ofindustrial incentives, including conditions
fortheprovision ofinterest-free andsoftloans, exemption from customs duty onmachinery,
equipment, spare parts andrawmaterials (WT/ACC/OMN/2, page 16,paragraph 110).
Reply
Please seereplies toquestions 158,171and172.
Theincentives andmeasures arenotrelated inanywaytoexport performance.WT/ACC/OMN/5
Page54
Question 170.
Concerning theindustrial incentives mentioned inparagraph 110, please provide additional
information. Arethese incentives available toallenterprises, including foreign orforeign-owned
entities? Dothese incentives apply inallsectors? Istheaward ofthese incentives contingent
upon anyspecial conditions?
Reply
Theincentives andmeasures described inparagraph 110oftheMemorandum andinreply
toquestion 158areavailable toallindustries andtoallcompanies, domestic andforeign, except for
interest-free loans which areavailable tothose companies inwhich Omani share isnolessthan
75percent.
Theaward oftheseincentives arecontingent upontheindustry having aregistration certificate
from theMinistry ofCommerce andIndustry (forengaging incommercial activity). Thesanction
ofloaniscontingent upon theproject having anindustrial licence andthesubmission ofafeasibility
report which proves thattheproject istechnically feasible andeconomically viable.
Question 171.
Please provide additional information oneligibility requirements fortheGovernment interest-free
loans andtheOman Development Bank soft-term loans. Under what terms andconditions can
firms wholly orpartially owned byforeign investors receive assistance intheform ofthe
interest-free orsoftterm loans?
Reply
Eligibility ofGovernment Interest-free Loans forindustry:
- theproject shallbeanindustrial project holding anindustrial licence/registration certificate;
- thecapital shallhavebeenfullypaidinatthetimeoftheloanapplication;
- theproject shallhaveanindependent budget ifitisoperating under amulti-purpose company;
- 75percentoftheproject capital shall beowned byOmanis throughout theloanperiod.
Nevertheless, theMinister ofCommerce andIndustry may,aftertheapproval oftheMinisterial
Committee, exempt theprojects thatcontribute tothepromotion ofthenational economy
provided theOmani participation shallnotbelessthan51percentoftheproject capital;
- asforsoft-term loans bytheOman Development Bank, theeligibility criteria areasfollows:
(a) theproject should beamanufacturing orservice project intheindustrial, fisheries,
petroleum andmining sectors,
(b) should belong toanestablishment which issubject toOmani Commercial Companies
Lawandregistered intheSultanate ofOman,
(c) should haveobtained alltherelevant governmental permissions. However, industrial
projects canapply foraloanbefore obtaining thepermissions,WT/ACC/OMN/5
Page55
(d) should belocated intheSultanate ofOman,
(e) should betechnically feasible andeconomically viable,
(f) itspromoters should beofgood reputation.
Question 172.
Please describe howtheinterest-free andsoft-term loans provided toindustry conform, orwill
bechanged toconform, totherules oftheWTO, including theAgreement onSubsidies and
Countervailing Measures. Please describe theterms thattypically apply tothese loans, suchas
limitations onamounts borrowed, repayment terms, applicable interest rates, performance
requirements, etc.What werethetotalannual amounts ofinterest-free loans andsoft-term loans
issued foreach ofthepastthree years? What percentage ofthese loans areclassified as
non-performing loans?
Reply
Theinterest-free Government loanandOman Development Bankloanschemes arebeing revised
sothataunified interest ratemaybecharged. Typical terms oftheprevailing interest-free loanscheme
areasfollows:
- forprojects taking theformofanOmani Joint-Stock Company orowned bysuchcompanies
andwhich havecovered notlessthan25percentoftheircapital through public subscription,
theloanshallbe100percentofthepaidupcapital iftheyareinMuscat Governorate and
125percentofthepaidupcapital, andwithout amaximum limit, iftheyareoutside Muscat
Governorate;
- amaximum oftwoloans shall besanctioned foranyoneproject within thelimit ofthe
company 'spaidupcapital;
- theloanisinterest-free andpayable in10annual instalments starting asfollows:
(a) after5years fromcommencement ofproduction orreceipt ofthelastpayment ofthe
loanwhichever comes firstwithregard toexisting projects,
(b) after5years fromthepurchase ofmachinery andequipment required fortheexpansion
oftheproject production capacity orthereceipt ofthelastinstalment oftheloan,
whichever comes firstwithregard toexisting projects,
(c) after3years from thedateofpayment ofthelastinstalment oftheloaninthecase
ofprojects facing financial difficulties,
- inallcases therepayment shallnotexceed thelifetime oftheproject;
- allassets oftheprojects forwhich theloanissanctioned shallbemortgaged tothegovernment;
- aninterest of10percentshallbecollected annually onanyoverdue instalment. Intheevent
ofdefault inpayment formore than6months after thematurity date, alltheremaining
instalments mayberegarded asdueandhavetobepaidasalump sum;
- amounts ofloans sanctioned during thelastthree years areasfollows:WT/ACC/OMN/5
Page56
Million RO Manufacturing Tourism
1994 7.6 0.4
1995 17.3 8.0
1996 16.8 6.9
(UptoendofNov)
TheOmanDevelopmentBank(ODB)grantssoft-termloanstomanufacturingandserviceprojects
intheindustrial, fisheries, petroleum andmining sectors. TheBankcurrently charges arateofinterest
at9percent. However, theGovernment oftheSultanate ofOman bears partofthatinterest byway
ofsubsidy of3percentperannum toprojects located inMuscat areaandof5percentperannum
toprojects located outside Muscat area.
Agrace period ofonetotwoyears depending upon theprojected cashflowoftheproject is
allowed forcommencement ofpayment ofinstalments. Thegrace period usually commences from
thedateofsigning ofloanagreement. Theduration oftheloanranges between 3to10years.
Thesoft-term loans areavailable toallenterprises, domestic andforeign onthesame basis.
Loans sanctioned bytheBank inthelastthree years areasfollows:
1994 RO12.19 million
1995 RO19.39 million
1996 RO22.19 million
Thenon-performing loans oftheBank, asof31December 1996, represent 6.55percentof
theoutstanding loans.
Thetwoschemes described above arepermissible subsidies under theWTO Agreement on
Subsidies andCountervailing Measures. These donotfallinthecategory ofprohibited subsidies, as
thetwotypeofloans arenotcontingent onexport performance orcontingent upontheuseofdomestic
overimported goods.
Wewould tendtothink thatthetwoschemes arenon-actionable subsidies within themeaning
oftheSubsidies Agreement asthesearenotspecific toenterprises orindustries orgroups ofenterprises
orindustries. These areavailable toallenterprises andindustries.
(b) Technical regulations andstandards, including measures taken attheborder withrespect
toimports (Annex 5)
Question 173.
Please provide, intranslation, allrelevant laws, decrees andregulations governing the
standards-setting process inOman andhowitisapplied toimports.
Reply
TheEnglish translation oftheRoyal Decrees which aregoverning thestandards-setting process
inOman areenclosed.
TheDirectorateGeneralforSpecificationsandMeasurements(DGSM)istheNationalStandards
body intheSultanate ofOman. Ithasbeenincorporated bytheRoyal Decree No.39/1976 datedWT/ACC/OMN/5
Page57
20October 1976. TheDGSM isresponsible forallactivities related toStandardization and
Measurements inOman. Allthetechnical regulations andstandards which areadopted, issued and
published bytheDGSM arelegally enforced bythelaw. TheOmani Standards thatsafeguard public
health, safety andtheenvironment aremandatory.
Quality Assurance andProduct Certification isoneofthelargest andmostversatile activities
inOman, where theDGSM applies anannual inspection programme forallcommodities either imported
orlocally produced, tocheck compliance withthestandards, toprovide theconsumers withtheessential
assurance thatperformance andsafety requirements ofthestandards arebeing consistently achieved.
Themanufacturers/exporters havetosatisfy anddemonstrate theconformity oftheirproducts
andservices tothestandards ortechnical regulations ofOman. Similarly alltheimporters haveto
abide andsubmit, upon request, anevidence ofcompliance withthestandards foreachconsignment.
Question 174.
Please indicate howOman 'sstandards areapplied toimports, inparticular, towhat extent an
import permit, certificate orlicence isnecessary forimportation. Inthisregard, wewould like
toseeinformation onOman 'simport standards regulatory system reflected inresponse tothe
questionnaire onimport licensing procedures contained inWT/ACC/1.
Reply
AlltheOmani Standards thatsafeguard thepublic health, safety andtheenvironment are
mandatory standards inOman forboththeimported andlocally produced products.
Allthemanufacturers/exporters havetodemonstrate theconformity oftheirproducts/services
totheOmani Standards where theyexistortotheinternational standards.
Alltheimporters havetosubmit, upon request, anevidence ofcompliance oftheirimports
withthestandards. Importers arenotrequired toproduce animport permit orlicence forimported
goods. Importer mayberequired toproduce anevidence ofconformity oftheimported goods with
theStandard.
Question 175.
According toparagraph 111oftheMemorandum, mostOmani standards andmeasures arebased
oninternational standards. Inorder fortheWTO Working Party tobetter understand Oman 's
standards, certification andlabelling requirements, please complete fullythequestionnaires on
technical barriers totrade andonimport licensing procedures.
Reply
Questionnaire ontechnical barriers isattached toOman 'sMemorandum asAnnex 5.
Questionnaire onlicensing willbeprovided later.
Question 176.
Please describe howthese requirements areenforced fordomestic products.WT/ACC/OMN/5
Page58
Reply
Quality Assurance andProduct Certification isoneofthelargest andmostversatile activities
inOman, where theDGSM applies anannual inspection programme forallproducts including foodstuff
products tocheck compliance withthemandatory standards toprovide theconsumers withtheessential
assurance thattheperformance andsafety requirements ofthestandards arebeing consistently met.
Allproducts aresubjected periodically totestsforconformity withstandards.
Question 177.
Arethere anyimpediments toOman accepting theobligations of,andabiding by,theAgreement
onTechnical Barriers toTrade asfrom thedateofitsaccession?
Reply
There donotappear tobeanyimpediments toOman 'saccepting theAgreement. However,
nearer thedateofaccession, andinthelightofquestions andcomments fromWTO member countries,
Oman would determine whether itwould accept theAgreement immediately orwould needatransition
period.
Question 178.
WeseekOman 'simplementation oftheWTO Agreement onTechnical Barriers toTrade from
thedateofaccession, andwould liketowork withOman onaspects ofitscurrent regime that
areasofnow, notfully inconformity withWTO provisions.
Reply
Pleaseseereplytoquestion177.Wewouldwelcometechnicalassistancefromfriendlycountries.
Question 179.
Oman willhave toaccede totheTBT Agreement from thefirstdayofaccession totheWTO.
What practical steps isOman taking orplanning totaketoprepare fortheaccession totheTBT
Agreement?
Reply
Oman isstudying thecompatibility ofitssystem withtheStandards Agreement. Thisstudy
would becarried further inthelightofquestions, comments andobservations byWTO members at
thefirstmeeting oftheWorking Party.
Question 180.
Could Oman please provide more detailed information thelegal basis fortechnical regulations
andstandards?
Reply
TheDGSM isthenational standards bodyintheSultanate ofOman, andhasbeenincorporated
bytheRoyal Decree No.39/1976 dated 20October 1976anditisresponsible forallactivities related
tostandardization andmeasurements intheSultanate ofOman. Thetechnical regulations andstandardsWT/ACC/OMN/5
Page59
which areadopted andpublished byDGSM andothergovernmental authorities intheSultanate ofOman
aremandatory under thelaw.
Question 181.
Could Oman please provide anoverview ofregulations relating todifferent products/product
areas?
Reply
TheOmani Standards cover thefollowing:
(a) foodstuffproducts;
(b) chemical products;
(c) building materials;
(d) textiles;
(e) electrical andelectronics products;
(f) mechanical andmetallic products;
(g) motor vehicles;
(h) industrial safety andhealth regulations.
Question 182.
Arethestandards usedinOman voluntary ormandatory; ifmandatory, could Oman please state
therational behind this?
Reply
AlltheOmani Standards thatsafeguard public health, safety andtheenvironment aremandatory
standards. These aremandatory soastoensure health andsafety ofthepopulace.
Question 183.
Could Oman please provide more in-depth information ontheprocedures andrequirements
connected withthemandatory and/or thevoluntary system ofcertification? Forexample, does
theOmani certification system contain thepossibility ofusing amanufacturers 'declaration?
Does Oman usepre-market certification inanyproduct areas?
Reply
(a) Quality Assurance andProduct Certification isoneofthelargest andmostversatile activities
where DGSM applies anannual inspection programme forallcommodities either imported orlocally
produced tocheck compliance withtheOmani, GulforInternational standards, toprovide theconsumers
withtheessential assurance thatperformance andsafety requirements inthestandards arebeing
consistently achieved. Within these activities theDGSM works withthemanufacturers toprovide
thebestsolution totheirproduct quality requirements. PartofDGSM QA'sclient support service
isthedevelopment ofguidance notes tohelpdifferent Omani industries interpret ISO9000series, and
apply ittotheirorganizations.
(b) TheDGSM accepts thethird-party certification systems forproducts according toprinciples
andrulesofISO/IEC Guides Nos.16-1978(E) and28-1982(E). Thebenefits ofthird-party certificationWT/ACC/OMN/5
Page60
inproviding undisputed proof ofcompliance arealsobecoming increasingly important intoday's
competitive markets.
(c) TheDGSM alsoaccepts themanufacturer 'sdeclaration ofconformity withstandards orthe
technical specifications according toISO/IEC Guide 22-1982(E), butthisdoesnotpreclude ourright
toaskforthird-party conformity certificates fortheproducts andtocheck compliance withtherelevant
standards.
(d) TheDGSM tends infuture tohavetheservice ofregistration toISO9000series andtoundertake
assessments within most areas ofbusiness andindustry, inboththeprivate andpublic sectors.
(e) TheDGSM tends infuture alsotoaward theOmani Quality Mark asasymbol ofthelocal
manufacturers commitment tothequality andsafety oftheirproducts andcompliance withOmani
Standards. Theproduct marking willhelpthemanufacturers andexporters toachieve theirbusiness
aimsandcompetitiveness inworld markets.
Question 184.
Does Oman accept asequivalent certificates from third country certification bodies?
Reply
Yes,Oman accepts thethird-party certification.
Question 185.
HasOman developed aquality assurance system? Could Oman please provide further information
onthissystem oronanyplans todevelop suchasystem.
Reply
Please refertoreply toquestion183.
Question 186.
Does Oman accept testresults andconformity assessments carried outbyqualified agencies in
exporting countries?
Reply
Yes,Oman accepts thethird-party certification systems forproducts according totheprinciples
andrules ofISO/IEC Guides Nos. 16-1978(E) and28-1982(E).
Oman alsoaccepts testresults andconformity assessments managed byaccredited laboratories
according toISO/IEC Guide 23-Methods ofindicating conformity withstandards forthird-party
certification systems, andrulesofISO/IEC Guide 28-General rulesforamodel third-party certification
system forproducts, andISO/IEC Guide 38-General requirements fortheacceptance oftesting
laboratories.WT/ACC/OMN/5
Page61
Question 187.
Paragraph 115states thattheDirectorate General forSpecifications andMeasurements (DGSM)
ensures thatdraft standards arecirculated forcomments inadvance offinalization. Please describe
theprocedures usedbyDGSM toensure thatpublic notice ofdraft standards forcomment is
provided toallparties? How longistheperiod forcomments ondraft standards, technical
regulations andconformity assessment procedures?
Reply
Omani Standards areelaborated inconsultation withconcerned parties, manufacturers, users,
research organizations, governmental departments, testing laboratories andconsumers, whoconstitute
technical committees. Thework iscoordinated bytheDGSM staff, acting asatechnical secretariat
tothetechnical committees where theconcerned bodies arerepresented. Thefirstdraftstandards are
prepared bytheDGSM technical staff. Draft standards arecirculated toallconcerned parties andthey
aregiven atimeoftwotofourmonths forcomments. After thereceipt ofcomments, either asecond
draftisissued orafinalstandard isissued. Inthecaseofasecond draftatimeofonemonth isgiven
forcomments.
Allcomments whether onthefirstorthesecond draftarecarefully considered bytherespective
technical committees.
Oman doesnotatpresent issue apublic notice forthispurpose. Theprocedure istosendthe
draftstandards toallconcerned parties forcomments.
Thesame procedure applies totechnical regulations andconformity assessment procedures.
Question 188.
TheDGSM isresponsible forpreparing Omani standards andactivities related tostandardization
andmeasurements, anditissues administrative regulations andorders. AretheDGSM orother
agencies required, bylawsorregulations, topublish draft standards forpublic comment? What
istherecommended period allowing forpublic comment ondraft standards? Dothelaws or
regulations direct theDGSM orother agencies toconsider theuseofappropriate international
standards when theyaredrafting standards?
Reply
Please seereply toquestion 187. Draft standards arenotpublished forcomments. However,
these aresenttoallconcerned parties fortheircomments, asexplained inreply toquestion 187.
Oman bases itsstandards oninternational standards, andmost ofitsstandards arebased on
international standards.
Question 189.
According toAnnex 5oftheMemorandum, standards andtechnical regulations arepublished
intheOfficial Gazette oftheSultanate ofOman. TheWTO Agreement onTechnical Barriers
ofTrade requires thepublication inadvance ofimplementation forcomment byinterested parties,
ofconformity assessment procedures andannouncements ofdraft standards andtechnical
regulations. Does theDGSM publish, forcomment byinterested parties, conformity assessmentWT/ACC/OMN/5
Page62
procedures andannouncements ofdraft standards andtechnical regulations? How much time
isallowed forcomment byinterested parties?
Reply
Please seereply toquestion 187.
Question 190.
How much timemust elapse between thepublication ofadraft standard andtheissuance ofthe
final standard? Does Oman notify itstrading partners prior totherelease offinal standards?
Does Oman notify those countries whose comments arerejected?
Reply
Notlessthanoneyearusuallyelapsesbetweenthepublicationofadraftstandardandtheissuance
ofthefinalstandard andthecorresponding Ministerial Decree. Allthetrading partners areinvited
andrepresented through theiragents inthemeetings ofthetechnical committees where thework is
done. Besides, theenforcing dateofthestandard begins 6months aftertheissuance ofthefinalstandard
andthecorresponding Ministerial Decree.
Individual countries arenotinformed about rejection oftheircomments. They gettoknow
itinthetechnical committee.
Question 191.
Could Oman detail thedifferences between itsstandards policy andtheinternational standards
regime, andwhat isbeing done tobase Omani standards more oninternational standards
(WT/ACC/OMN/2, page 16,paragraph 111)?
Reply
Omani Standards areessentially based ontheinternational standards where theseareappropriate
andsatisfying ourlevels ofprotection thatsafeguard thepublic health, safety andtheenvironment,
forexample themicro-analytical andmicro-biological assessment, notonlyfordetection ofcontaminants
butalsoofother properties thatmaydirectly affect thesafety offood. Another example istheOmani
Standards forMotor Vehicles imported totheSultanate ofOman; these should besuitable forusein
dusty atmospheric conditions, highpercentage humidity, highambient temperature anduneven roads
especially forradiator (typeandsize), battery, tyresandsuspension systems; besides, themotor vehicles
should satisfy theessential safety requirements andtheengine shallbesuitable fordomestic gasoline
withrespect toitsleadcontent andoctane number andalsofordomestic diesel oilandthegaseous
pollutants totheatmosphere should notexceed theallowable limits according totheconcerned Omani
Standards.AnotherexampleoftheOmaniStandardswithrespecttotheimportedelectricalandelectronic
products isthatthese should satisfy therequirements ofOS270/1995 for"Voltage Rating Provisions
forHousehold Electrical Appliances andother Electrical Products forDomestic Use" andsoon.
Question 192.
Please explain fully howOman 'ssystem ofstandards conforms toWTO rules.WT/ACC/OMN/5
Page63
Reply
Asexplained inreplies toprevious questions Oman 'ssystem byandlarge conforms toWTO
rules. Theonlydeficiency wenotice isthatdraftstandards arenotpublished forcomments. Inother
respects wethink oursystem isinconformity withWTO rules.
Question 193.
Pleaseidentifythoseindividualstandardsandmeasuresthatarenotinconformitywithinternational
norms.
Reply
TheOmani Standards areessentially based onInternational Standards. Ingeneral Omani
Standards aretheminimum requirements which must beattained byagiven product. Thenational
standards maybeequal to,orhigher thantheinternational standards based onthecountry 'sappropriate
levelofhealth protection (riskassessment) orcountry 'sclimatic andenvironmental conditions.
Question 194.
According toparagraphs 54and111oftheMemorandum, allimported anddomestically-produced
goods must meet Omani standards andmeasures. Does DGSM develop standards foreach
individual foodproduct imported intoOman? Please describe howthestandards areapplied
totheimport ofsimilar, butdifferent, products, when nospecific standard exists.
Reply
Whenever nospecific standard exists, thefoodproducts imported intoOman aretested toensure
thesafety offoods inregard tothefollowing concerns:
- absence ofpesticide residues andresidues ofveterinary drugs infoods according tothe
recommended international codeofpractice (Codex Alimentarius);
- foodadditives according toCodex Alimentarius;
- levels forradio-nuclides infoods according toCodex Alimentarius;
- micro-biologicalmethodsoffoodexamination-commercialsterilitytest:compendiumofmethod
formicro-biological examination offoods prepared byAPHA inter-society;
- thelabels ofallprepackaged foodshallbearinformation inArabic andEnglish according to
Omani Standards.
Question 195.
Areimported anddomestically-produced foodstuffs subject tothesame standards andinspection
procedures?
Reply
Yes.WT/ACC/OMN/5
Page64
Question 196.
Please provide alistofallimported foodproducts thatDGSM testsforconformity withstandards.
Reply
Allimported foodproducts aresubject totesting. Thelistwould runintothousands ofitems.
Question 197.
Please describe thedispute settlement procedures applicable totheresolution ofissues related
tofoodstandards.
Reply
Incaseofadispute, thesample canberetested orthesample canbesentfortesting toa
laboratory outside Oman. Inthatcase,goods willnotbeheldupattheCustoms. These maybereleased
andtaken totheimporters 'warehouse, buttheimporter cannot sellordispose ofthegoods forpublic
consumption untilthedispute isfinally resolved.
Question 198.
Accordingtoparagraph113oftheMemorandum,Omanistandardsandmeasurestakeintoaccount
theenvironmental conditions oftheSultanate ofOman. Please elaborate onhowOman applies
standards andmeasures to"take intoaccount theenvironmental conditions intheSultanate of
Oman". What arethemajor concerns ofOman regarding standards forimports offoodstuffs?
Reply
Because oftheharsh climatic conditions inOman, foodstuffs maybecome unfitforhuman
consumption inashorter timethaninother countries withmoderate climate. Because ofthatOman
provides forashorter shelf-life forfoodstuffs.
AlsoOmanprovidesspecificrequirementsfortransportationandstorageoffoodstuffsandkeeping
foodstuffs inthesupermarkets.
TheRecommended International Code ofPractice fortheprocessing, handling, storage and
transportoffoodstuffsespeciallyforchilledorfrozenfoodsisfollowedasOmanimeasuresinrecognition
oftheclimatic conditions inOman.
(c) Sanitary andphytosanitary measures, including measures taken withrespect toimports
Question 199.
Does Oman anticipate anydifficulties inapplying theSPSAgreement infullfrom thedateof
accession?
Reply
NoWT/ACC/OMN/5
Page65
Question 200.
Please describe precisely howOman intends toapply theprovisions oftheWTO Agreement on
Sanitary andPhytosanitary Measures?
Reply
Oman 'sexisting system, inourview, iscompatible withtheprovisions oftheSPSAgreement.
However, ifincertain aspects itisfound tobedeficient, necessary changes would bemade inlaws,
regulations andprocedures.
Question 201.
Please indicate howOman 'ssanitary andphytosanitary requirements areapplied toimports,
inparticular, towhat extent animport permit, certificate orlicence isnecessary forimportation.
Inthisregard, wewould liketoseeinformation onOman 'simport regulatory system forsanitary
andphytosanitary measures reflected inresponse tothequestionnaire onimport licensing
procedures contained inWT/ACC/1.
Reply
Sanitary andPhytosanitary measures arerequired bytheRoyal ActNo.49dated 1977. To
obtain import licence fromMinistry ofAgriculture andFisheries theonlyrequirement istoberegistered
withtheMinistry ofCommerce andIndustry. Theimport licensing procedure istheinterested party
isrequired tofillanapplication formandtohanditoverthedepartment ofagriculture affairs which
willcheck theeligibility oftheapplicant andthelawfulness oftheapplication. Ifapproved, thelicence
willbeissued totheapplicant. Forgoods arriving attheportwithout alicence, timeneeded for
obtaining approval forintroduction maybefromfewhours totwodays(depending onquantity, quality,
andtypeofgoods) andallPhytosanitary regulations andrules willbeapplied. Thelicence obtained
isvalidupto3months andnofeesrequired forobtaining it.Goods inspection charges forquarantine
measure value: RO1/-pertonuptoamaximum ofRO100/- which willnotbeexceeded regardless
theincrease intonnage. Iftheconsignment needs treatment, charge isRO1/-foreachtonwitha
maximum ofRO100/- asabove. Treatment fortransit trade issimilar totheimport trade. Dueto
seeds andplants, there isalistofprohibited oneseg.imports andexports ofallpalmvarieties. Also,
there isalistofprohibited andrestricted pesticides, forothers there isnolimitation.
Import permit mustbeobtained prior toimportation forifanyconsignment ofanimal, bird
orliving organism.
Allconsignments must arrive ascargo.
Each consignment must beaccompanied by:
- official veterinary health certificate issued byveterinary authorities inthecountry of
origin;
- adeclaration incaseofanimals imported forslaughter orbreeding from thecaptain
ofthevessel oraircraft thattheconsignment hascome direct fromthelastportofcall
ofthecountry ororigin orinthecaseofimportation byairtheyhave notbeen
off-loaded ormixed withanyanimals notdestined forimportation toOman.WT/ACC/OMN/5
Page66
Allconsignments aresubject toquarantine onarrival. Provided alldocuments arecorrect and
theanimals arehealthy arelease permit maybeissued totheimporter.
Information inquestionnaire onimport licensing willbeprovided.
Question 202.
Please describe howthese requirements areenforced fordomestic products.
Reply
Thesanitaryandphytosanitarymeasuresareenforcedfordomesticproductsthroughaprogramme
ofregular inspections.
Question 203.
Does Oman intend toharmonize itssanitary andphytosanitary standards withinternationally
accepted guidelines (Codex Alimentarius)?
Reply
Oman isalready following theinternationally accepted guidelines (Codex Alimentarius).
Question 204.
Please describe theextent towhich Gulf Cooperation Council standards forfoodstuffs are
incorporatedintoOman'sfoodlaws.PleasedescribehowOmanappliessanitaryandphytosanitary
measures tofoodproducts.
Reply
Oman isfollowing andfullyapplying theGCC standards forfoodstuffs.
Question 205.
Pleaseprovidetranslationsoflaws,regulationsanddirectivessettinghealthandsanitationstandards
forimported foods.
Reply
These arenotavailable inEnglish. AnEnglish translation willbefurnished totheWTO.
Question 206.
Please provide acomplete listofimported products, including HStariff number, thatarehighly
restricted orbanned foranimal orplant health reasons, andprovide thecorresponding justification
forthese measures.
Reply
Alistisattached.WT/ACC/OMN/5
Page67
Question 207.
Foreach product, please describe theveterinary inspection andquarantine requirements that
apply tolivestock, animal products, fish,veterinary drugs andanimal feed.
Reply
A. Livestock
Onarrival, veterinary quarantine office willexamine theimported animal andnecessary action
willbetaken ifanysignofinfectious disease arefound.
Allanimals aresubjected toquarantine for21days. (Birds 15days) asperregulation.
Ifanyoftheconditions ofimportation (seeanswer ofquestion 201)arenotfulfilled theanimal
willberefused entry intoOman andwillbereturned tothecountry oforigin attheowner 'sexpense.
B. Animal Products
Upon arrival oftheconsignment theveterinary officer atthePortofEntry shallreceive acopy
oforiginal health certificate andinspect theconsignment andperform laboratory analysis inorder to
ensure thattheconsignment isfitforhuman consumption.
Upon satisfaction thattheconsignment isfitforhuman consumption theveterinary officer at
thePortofEntry shallissue release permit andrelease theconsignment.
TheDepartment ofAnimal Wealth shallaskanyother certificates thatarenecessary toensure
thattheconsignment isfitforhuman consumption etc.(Halal Certificate, Radiation freecertificate,
andLaboratory analysis certificate).
Question 208.
Please describe theadministrative andjudicial avenues ofappeal forimporters andexporters
intheapplication ofsanitary andphytosanitary requirements toimports.
Reply
Theavenues ofappeal aretothehigher echelons oftheMinistry ofAgriculture. There are
nojudicial avenues ofappeal.
(e) State-trading practices
Question 209.
With respect toState-trading practices, thetwofollowing enterprises arementioned in
paragraphs 119and120:
(i) thePublic Authority forMarketing Agricultural Produce,
(ii) thePublic Authority forStore andFood Reserves,
Could Oman explain howtheyactually conduct their activities?WT/ACC/OMN/5
Page68
Reply
(i) TheGovernment oftheSultanate ofOman hastaken adecision toprivatize thePublic Authority
forMarketing Agricultural Produce. Itwillnolonger beanAuthority; itwillbeacommercial company.
Thedecision isunder implementation. Itwillthusnolonger beaState enterprise.
(ii) ThePublic Authority forStores andFood Reserves wasestablished in1980byRoyal Decree
No.62/80. Itsobjective istostoreandprovide strategic foodreserves. TheAuthority purchases and
stores strategic foodcommodities, distributes these andkeeps onreplenishing thereserves. Purchase,
distribution andreplenishment isacontinuous process. TheAuthority keeps stocks forsixmonths '
requirements oftheSultanate.
Thefoodcommodities thattheAuthority stores asreserves are:rice,sugar, tea,powder milk
andedible oil.Except forrice,theAuthority doesnotimport anyoftheother fouritems. Itpurchases
these commodities from importers inOman, stores these, releases these periodically andreplenishes
thereleased stocks bymaking further purchases.
Asforrice,theAuthority imports riceonthebasis ofopen tenders. However, itdoesnot
haveanyexclusiveorspecialprivileges.Otherimporterscananddoimportricewithoutanyrestrictions.
TheAuthority thusisinopencompetition withtheimporters.
TheAuthority makes itssalesandpurchases onpurely commercial considerations.
Question 210.
OmanliststwoState-tradingenterprisesinthissection(WT/ACC/OMN/2,page17,paragraph119).
Could Oman provide amore in-depth explanation ofthefunction ofthese twoenterprises aswe
note, forexample, thatinparagraph 79thePAMAP setsimport quotas forfruits andvegetables?
IsthePAMAP notaState-trading enterprise according tothedefinition ofArticle XVII andthe
Understanding ontheInterpretation ofArticle XVII ofGATT 1994?
Reply
Please seereply toquestion 211.
Question 211.
According totheMemorandum, Oman doesnothave State-trading enterprises asdefined by
Article XVII. However, twoState enterprises, ThePublic Authority forMarketing Agricultural
Produce (PAMAP) andthePublic Authority forStores andFood Reserves, engage inimports
andexport. Forthesake ofgreater transparency, please describe, asaresponse tothe
Questionnaire onState trading, eachofthese twoenterprises anditsoperations.
Reply
ThePublic Authority forMarketing Agricultural Produce isbeing privatized asstated inreply
toquestion 209.WT/ACC/OMN/5
Page69
AsforthePublic Authority forFood Reserves itisnotaStatetrading enterprise interms of
Article XVII oftheGATT 1994 orinterms oftheUruguay Round Understanding onArticle XVII.
ItalsoisnotaState trading enterprise byanydefinition orcriteria.
However, wewould havenoobjection inproviding thedesired information.
Question 212.
Please listallproducts traded bythese enterprises. Approximately what portion ofimport and
exports ofthese products areaccounted forannually bythese firms?
Reply
Please seereply toquestion 209.Asforthesecond partofthequestion, statistical information
onthisisnotreadily available.
Question 213.
What isthesource offunding forthePAMAP andthePublic Authority forStores andFood
Reserves? What products dotheybuyandsell,towhom arethese products sold, andwhat is
theroleofthese firms inthedomestic distribution ofthese products? How dothese enterprises
determine theprices forthecommodities theybuyandsell?
Reply
Thesource offunding forthePAMAP isthegovernment. However, asstated inreply to
question 209,itisbeing privatized.
TheAuthority forStores andFoodReserves isself-financing initsoperations asfaraspurchases
andsalesareconcerned. Asforstorage space andcosts andestablishment expenses, itgetsamodest
grant from theGovernment.
TheAuthority forFood reserves buysandsellsrice,sugar, tea,milkpowder andedible oil.
These products aresoldthrough itsnetwork ofdealers, butitalsosellsthese intheopenmarket in
order torelease andreplenish itsstocks. Inthedomestic market theAuthority competes withindividual
traders.
Thepurchase andsaleprices aremarket-based.
Question 214.
According toparagraph 79oftheMemorandum, PAMAP establishes import quotas forfruits
andvegetables. Does PAMAP alsohave aroleinallocating theimport quotas forfruits and
vegetables?
Reply
Paragraph 79oftheMemorandum ismodified totheextent thattheAuthority didnotestablish
quotas forfruits andvegetables. Itmade recommendations fortotalembargo onimport offruits and
vegetables inseasons when there wasoversupply ofdomestic fruits andvegetables. TheAuthority
thusdidnothaveanyroleintheallocations ofquotas.WT/ACC/OMN/5
Page70
Asstated earlier, theAuthority isbeing privatized andthatroleofembargoes willvanish.
Question 215.
CanOman guarantee thatthetwoState-owned enterprises mentioned inthissection actinamanner
consistentwiththegeneralprinciplesofnon-discriminatorytreatmentprescribedintheGATT1994
forgovernmental measures affecting imports orexports ofprivate traders?
Reply
ThetwoStateenterprises conduct theirbusiness onpurely commercial considerations likeany
private commercial enterprise. TheSultanate ofOman declares thatthese enterprises actinamanner
consistent withprinciples ofnon-discriminatory treatment.
Question 216.
CanOman confirm thatthere arenoother enterprises, whether ornotState-owned, which fall
within thescope ofArticle XVII oftheGATT 1994 orArticle VIIIoftheGATT?
Reply
No,there arenoother enterprises.
Question 217.
Concerning theregime applicable totheproduction andexportation ofpetroleum, natural gas
andpetrochemicals, please outline thestructure ofthisindustry forproduction andtrade. Does
theGovernment ofOman ownanyenterprises which have theability toinfluence through their
purchases andsales, thelevelofimports orexports ofoil,natural gasorpetrochemicals? Has
theGovernment conferred exclusive orspecial rights orprivileges toanyenterprises, intheexercise
ofwhich, theycaninfluence through their purchases orsales thelevel ordirection ofimports
orexports, ofthese products? Please identify anddescribe these enterprises, asaresponse to
theQuestionnaire onState Trading.
Reply
Information intheform ofquestionnaire willbesentlater.
(f) Freezones
Question 218.
Does Oman have anylegislation relating tofreezones? Ifso,please provide details.
Reply
No
Question 219.
Does Oman have anyintention ofestablishing anyfreezones inthefuture?WT/ACC/OMN/5
Page71
Reply
No.
(g) Freeeconomic zones
Question 220.
Does Oman have anylegislation relating tofreeeconomic zones? Ifso,please provide details.
Reply
No
Question 221.
Does Oman have anyintention ofestablishing anyfreeeconomic zones inthefuture?
Reply
No
(l) Government procurement practices, including legalregime andprocedures fortendering,
dealing withtenders andawards ofcontracts
Question 222.
WeseekOman 'saccession totheAgreement onGovernment Procurement inthecontext ofits
accession totheWTO. Wewould encourage Oman tostate itsintent tobecome amember of
theGovernment Procurement Agreement, andtoforward totheGPA Committee aninitial offer
foranentity listwithin three months ofaccession totheWTO.
Reply
TheAgreementonGovernmentProcurementisoneofthefourplurilateralagreementsacceptance
ofwhich isnotobligatory forjoining theWTO. Themembership ofGPAisverylimited andalarge
majority ofWTO members arenotparties totheGPA. TheSultanate ofOman seesnoadvantage
injoining theAgreement. Itwould reconsider itsposition iftheGPA became auniversal agreement
andallMembers oftheWTO accept it.
Question 223.
Does Oman intend tojointheGPA? Ifnot,whynot?
Reply
Please seereply toquestion 222.WT/ACC/OMN/5
Page72
Statistics
Question 224.
Could theOmani Government provide abreakdown ofthepublic sector procurement market
bothbycontracting entity andbyproduct type?
Reply
Nostatistics areavailable.
Question 225.
What istheoverall value ofpublic sector purchasing inOman, andwhich arethemajor procuring
entities?
Reply
Nostatistics areavailable.
Question 226.
WhatstatisticsdoestheOmaniGovernmentcollectonprocurement?CouldtheOmaniGovernment
make these statistics available totheWorking Party, aswellasacopy oftheir most recent law
onpublic procurement?
Reply
Nostatistics arecollected ongovernment procurement.
Management structure
Question 227.
What isthemanagement structure ofOman 'ssystem ofgovernment procurement?
Reply
Oman 'ssystem ofgovernment procurement ismanaged byahigh-level Tender Board which
isanindependent authority notattached toanyMinistry orDepartment. IthasitsownChairman,
itsownSecretariat anditsownseparate staff. TheTender Board isassisted byvarious tender committees
established within theMinistries.
Contracts forgovernment purchases oflessthanRialOmani 250,000 areprocessed andfinalized
bythetender committees within theMinistries. Alltenders ofRialOmani 250,000 ormore are
announced, processed andawarded bythehigh-level Tender Board.
Question 228.
There isacentral agency thatpurchases onbehalf ofallcentral government agencies (Tender
Board). However, howispurchasing managed forlocal government agencies andforother
publicly-controlled bodies suchasState-trading enterprises?WT/ACC/OMN/5
Page73
Similarly, howisprocurement managed byutilities (entities operating intheoilandgas,electricity,
transportation andwater sectors)?
Reply
Local government agencies fallwithin thejurisdiction oftheTender Board, andhavetofollow
theprocedures oftheTender Board.
State enterprises andutilities, except forelectricity, water andtransport sectors, donotfall
within thejurisdiction oftheTender Board. They havetheirownprocedures andtheirowntender
committees.
Monitoring authority
Question 229.
Isthere acentral agency which controls theapplication ofthelegal system ormonitors
infringements ofprocurement law?
Reply
Yes,itistheTender Board.
Legal remedies
Question 230.
Cansuppliers whodispute theaward ofacontract seekredress through national courts ora
tribunal system?
What remedies (forexample damages orre-tendering ofcontract) areavailable?
Reply
No
Advertising
Question 231.
Dodetailed rules existontherequirement topublish tender andcontract award notices?
Ifso,what information must these notices contain, andwhere aretheypublished?
Reply
Tender notices arerequired tobepublished, under therules, inlocalnewspapers andinthe
Official Gazette. They arealsoannounced ontelevision andradio. However, contract award notices
arenotpublished.WT/ACC/OMN/5
Page74
Procurement procedures
Question 232.
What aretherequirements forpre-selection ofcandidate suppliers inlimited tenders?
Reply
Therequirements forpre-selection ofsuppliers inlimited tenders arethequalifications ofthe
candidate suppliers, i.e.therequisite experience ofthesuppliers, track record ofpastperformance,
theirfinancial standing andtheavailability ofprofessionals withthesuppliers.
Criteria forawarding contracts
Question 233.
Please describe theprocedures fortendering bidsandawarding government contracts.
Reply
There aredifferent evaluation methods, depending onthetypeoftender andtheevaluating
body(which includes representatives oftheMinistry orAgency concerned). Some tenders areevaluated
bytheMinistry concerned together withtheirconsultants andtheTender Board. Others could be
evaluated without thehelpoftheconsultants. Price isnottheonlycriterion inevaluating bids.
Question 234.
How arebidsevaluated? Isprice theonlycriterion inevaluating bids, orarecontracts also
evaluated byreference toan"economically most advantageous offer" approach?
Ifso,under what conditions arethedifferent evaluation methods used?
Reply
There aredifferent methods forevaluating bidsdepending uponthetypeoftender andthenature
ofgoods. Price isnottheonlycriterion inevaluating bids.
Question 235.
Please describe indetail thesystem ofprice preferences given toOmani companies andtoGCC
companies inevaluating bids.
Reply
Ifthequality andspecifications offoreign andOmani orGCC goods arecomparable, then
thebidofanOmani company/supplier would beaccepted ifitishigher byatthemost10percent.
IfOmani company isnotintherunthenprice ofaGCC company orsupplier would beaccepted if
itishigher bynomore than5percent.WT/ACC/OMN/5
Page75
Offsets
Question 236.
Does Omani procurement lawmake provision foranyoffset requirements, suchastechnology
transfer orbuy-back arrangements?
Reply
Thelawisnotspecific onthissubject.
Discrimination offoreigners
Question 237.
Arethere anyprovisions inOmani lawwhich discriminate against theparticipation offoreigners
inpublic procurement contracts?
Reply
Please refertoparagraph 132oftheMemorandum andreply toquestion 235.
Information technology
Question 238.
Arethere anyplans tosetupasystem ofelectronic tendering forpublic procurement been set
upinOman.
Reply
No
International involvement
Question 239.
Does Oman have anyexisting purchasing agreements withthird countries?
Ifso,withwhich countries?
Could Oman alsoprovide theWorking Party withcopies ofthose agreements?
Reply
NoWT/ACC/OMN/5
Page76
Legislation
Question 240.
Please submit, totheWorking Party, copies oftheGovernment Tender Regulations (Royal Decree
No.86/84 of29October 1984) andtheUnified Rules Granting Preferences inGovernment
Purchases totheNational Products andProducts ofGCC Origin (Ministerial Decision No.18/87).
Reply
Complete translation inEnglish oftheTender Regulations andtheUnified Rules isnotcurrently
available. Translation oftheimportant provisions isattached.
Question 241.
Could Oman provide theWorking Party withcopies ofRoyal Decree No.86/84 of29October 1984
andMinisterial Declaration No.18/87 (page 17oftheMemorandum)?
Reply
Please seereply toquestion 240.
4. Policies Affecting Foreign Trade inAgricultural Products
(b) Exports
Question 242.
According toparagraph 138oftheMemorandum, Oman does notgrant export subsidies on
agricultural products. Export subsidies arethemosttrade distorting forms ofagricultural support.
Weencourage Oman tomaintain itsexport subsidy-free regime andbind itsexport subsidy
commitment atzero. Please comment.
Reply
TheSultanate ofOman willcontinue withatraderegime freeofexport subsidies. Itisprepared
tomake acommitment tothateffect.
(c) Export prohibitions andrestrictions
Question 243.
Please identify thespecies offish, including HStariff numbers, which aresubject toexport
restrictions.
Reply
Therestricted species are:lobster, abalone andsharks.WT/ACC/OMN/5
Page77
Question 244.
Could Oman explain thenature ofandjustification foritsrestrictions ontheexport ofdateseeding
andcertain species offish? Please describe theprocedures required toobtain approval toexport
these products.
Reply
(a) Banontheexport ofdateseedling istopreserve rareOmani varieties.
(b) Among thejustifications forthisrestriction istheconservation ofsome rarefishspecies of
higheconomic value which arefacing threat ofoverexploitation inOmani waters. Toachieve this
goal, thefishing season forthese species hasbeenfixed toguarantee theirbreeding during theclosed
season. Alicence issued bythecompetent authority intheMinistry isaprerequisite fortheexport
ofsuchspecies.
Question 245.
Intheabsence ofWTO provisions addressing these restrictions, weseekOman 'sagreement to
eliminate these restrictions from thedateofaccession. Ifother measures arenecessary forthe
regulation oftrade inthese items, suchmeasures should beconsistent withWTO provisions.
Reply
TheSultanate ofOman would accept andadhere toWTO obligations inthisrespect. Ifthese
obligations require Oman toeliminate/modify/replace theserestrictions itwould doso.Anyreplacement
measures willbeWTO consistent.
(d) Export credits, export credit guarantees orinsurance programmes
Question 246.
According toparagraph 140oftheMemorandum, Oman doesnotprovide export credit orexport
credit guarantees orinsurance programmes foragricultural products. However, paragraph 103
oftheMemorandum states thattheExport Guarantee andFinancing Unit(EGFU) oftheOman
DevelopmentBankprovidesexportinsurancecoverandexportfinancing.Areagriculturalproducts
excluded from EGFU coverage?
Reply
Agricultural products arealsocovered byEGFU.
(e) Internal policies
Question 247.
Please describe Oman 'sagricultural policies bycompleting aresponse toWT/ACC/4, Information
tobeProvided onDomestic Support andExport Subsidies inAgriculture, prior tothefirstmeeting
oftheWorking Party.WT/ACC/OMN/5
Page78
Reply
Completed WT/ACC/4 willbesubmitted later.
Question 248.
Please provide theinformation requested inWT/ACC/4 ondomestic support andexport subsidies.
Wereserve theright tocome back tothisissue oncethese have been provided.
Reply
Completed WT/ACC/4 willbesubmitted later.
Question 249.
WenotethatOman provides anumber ofdomestic support measures (WT/ACC/OMN/2, page 19,
paragraph 142). Could Oman provide anextensive listofthese measures andexpenditure provided
toeachofthese programmes?
Reply
There arenosubsidies given tofarmers. However, thereisminor support fortheintroduction
ofthenewinnovations inallaspects ofagricultural work. Thescope includes anynewinnovations
identified asnecessary fortheagricultural activity andrecommended bytheresearch andincluded in
theextension programme. Allfarmers areeligible forselection however, ineachareaonlyalimited
number offarmers willbeselected fortheintroduction ofthenewinnovation asdemonstration totheir
peers. Theonestobeselected arethefirsttoapproach theextension forhelptointroduce thenew
innovation andwhoaccept thattheirfarms willbeusedfordemonstration forother farmers andwho
areready tocooperate withextension.
Question 250.
Please provide detailed information onthenature andscope ofthesubsidies provided tosmall
farmers, andforthesubsidies forthepurchase ofagricultural machinery. What inputs arecovered
bythesubsidies? What aretherequirements foreligibility toreceive thesubsidies?
Reply
Thereisnosubsidyorsupportexceptforthatmentionedinreplytoquestion249.Paragraph142
ofOman 'sMemorandum maybetreated ascancelled.
Question 251.
Please identify eachagricultural product currently subsidized anddescribe fully theapplicable
subsidy programme andpolicy.
Reply
There isnosubsidy orsupport foranyagricultural product.WT/ACC/OMN/5
Page79
Question 252.
DoestheGovernment ofOman support agricultural producers bysubsidizing water andirrigation
equipment? What other production subsidies doesthegovernment provide toitsagricultural
producers?
Reply
None. Paragraph 142oftheMemorandum maybetreated ascancelled.
Question 253.
Please provide datadetailing thequantities andtypes ofagricultural assistance distributed by
thegovernment inrecent years.
Reply
Information inWT/ACC/4 willbesubmitted later.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
Question 254.
Oman intends tobecome aMember oftheWorld Intellectual Property Organisation. What steps
hastheGovernment ofOman taken inthisrespect?
Reply
TheSultanate ofOman hasalready become amember oftheWorld Intellectual Property
Organization.
Question 255.
WillOman alsojoinother international agreements intheareaofintellectual property, suchas
theBerne, Paris orRome Convention? Ifso,what isthetime-frame?
Reply
Itisourunderstanding thattheTRIPS Agreement doesnotrequire amember country tojoin
Berne, Paris orRome Conventions. Itonlyrequires them toapply theirprovisions.
Question 256.
InWT/ACC/OMN/2 itissaidthatOman extends national treatment andm.f.n. treatment to
foreign nationals inrespect ofpatents, trademarks andcopyright andrelated rights. Does this
mean thatinother areas ofintellectual property these principles arenotapplied?
Reply
TheSultanate ofOman doesnothavelegislation atpresent inother areas.WT/ACC/OMN/5
Page80
Question 257.
Does Oman consider itscurrent domestic legal framework tobesufficient fortheadequate and
effective protection ofintellectual property rights?
Reply
TheSultanate ofOman atpresent hasIPRlegislation intheareasoftrademarks andcopyrights.
Itdoesnothavelegislation inother areas. Laws andregulations compatible withtheTRIPs Agreement
willbeenacted induecourse.
Question 258.
What steps willOman takeinregard toobligations under theTRIPS Agreement relating to
enforcement ofintellectual property rights?
Reply
Itwould putinplaceinduecourse laws, regulations andprocedures compatible withArticles 42
to61oftheTRIPS Agreement.
2. Substantive Standards ofProtection
(a) Copyright andrelated rights
Question 259.
Please describe Oman 'slawsoncopyright protection. What works arecovered? What isthe
term ofprotection? Iscopyright protection afforded onanational treatment basis, and,ifnot,
what aretheexceptions?
Reply
TheCopyright LawoftheSultanate ofOman isofrecent origin; itcame intoforceinJune1996
andrepresents astepforward byOman inpreparation foritsmembership oftheWTO.
TheLawdefines protectable matter; itcontains thescope ofprotection, theauthors 'rights,
theperiodofprotection,meansofprotectingauthors'rightsandprovisionsonpenaltiesforinfringement.
Thelistofworks covered isgiven inparagraph 150ofOman 'sMemorandum. Thetermof
protection is50years asdescribed inparagraph 153ofOman 'sMemorandum.
Thecopyright protection isafforded onanational treatment basis.
Question 260.
Does Oman plantojointheBerne Convention fortheProtection ofLiterary andArtistic Works
andtheGeneva Phonograms Convention prior toWTO accession? What changes inthecopyright
lawwould have tobemade tomeet therequirements oftheBerne Convention andGeneva
Phonograms Convention?WT/ACC/OMN/5
Page81
Reply
Weunderstand itisnotobligatory tojointheBerne Convention inorder tobecome aMember
oftheWTO. Wewould havetofollow theprovisions oftheBerne Convention, which wewould do
faithfully when wearemembers oftheWTO. Allnecessary changes inthecopyright lawwould be
made inconsultation withtheWTO andtheWIPO. Forthatpurpose wewould needtechnical assistance
from bothorganizations.
Question 261.
What changes willbeneeded tobring Oman 'scopyright lawsintoconformity withtheTRIPs
agreement? What isthecurrent status ofthese changes?
Reply
Please seereply toquestion 260.
Question 262.
Does thelegislation ofOman provide forrental rights? Please explain.
Reply
Yes,Omani lawprovides forrental rights. Thisissetforth inArticle 11oftheCopyright
Law. There should bedetailed written contract forthatpurpose.
Question 263.
Please describe thecopyright lawprovisions relating torental rights forcomputer programs and
cinematographic works. What works aresubject totherequirement thatauthors andtheir
successors intitlemayauthorize orprohibit thecommercial rental oforiginals orcopies oftheir
works?
Reply
There isnospecific provision inthelawonrental rights forcomputer programs and
cinematographic works.
Question 264.
How areperformers, producers ofphonograms andbroadcasting organisations protected?
Reply
These areprotected under Article 2ofOman 'sCopyright Law. Thetermofprotection is
50years except formovies forwhich thetermofprotection is25years.
Question 265.
How aresound recordings, databasecompilations, andcomputer programs protected bythe
copyright law?WT/ACC/OMN/5
Page82
Reply
Soundrecordings,computerprogramsanddatabasecompilationsareprotectedasliteraryworks
under Article 2ofOman 'sCopyright Law. These areprotected forfiftyyears.
Question 266.
Could Oman provide acopyoftheLawfortheProtection ofCopyrights issued byRoyal Decree
No.47/96 (WT/ACC/OMN/2, page 20,paragraph 150)?
Reply
AcopyoftheLawtranslated inEnglish isenclosed.
Question 267.
Inwhat circumstances would theGovernment oftheSultanate ofOman decide topublish or
reproduce acompilation which wasnotpublished bytheheirs orsuccessors oftheauthor, thereby
triggering compensation mechanisms (WT/ACC/OMN/2, page 21,paragraph 159)?
Reply
Article 10ofOman 'sCopyright Lawprovides thatwhen public interest requires thepublication
orreproduction ofacompilation which wasnotpublished bytheheirsoftheauthor orhissuccessors,
theMinister ofCommerce andIndustry maypassadecision topublish thecompilation andtofairly
compensate theauthor 'sheirsorsuccessors. However, theMinister maymake thedecision onlyafter
making anofficial request tothesuccessors forpublication andwaiting forsixmonths foraction on
thatrequest.
Question 268.
Doforeigners enjoy thesame treatment astheOmani nationals interms ofthecriminal procedures
andpenalties available against infringement ofintellectual property rights?
Arethese procedures inconformity withArticle 61oftheTRIPS Agreement (WT/ACC/OMN/2,
page 21,paragraphs 160-162)?
Reply
TheCopyright LawofOman hasprovision onpenalties forinfringement (Article 16ofthe
Law) butitdoesnothavedetailed provisions onenforcement. Inthisrespect theLawmayfallshort
oftherequirements oftheTRIPS Agreement. However, theSultanate iscommitted toassuming all
obligations under theWTO including under theTRIPS Agreement anditwould implement theTRIPS
Agreement andmake thenecessary changes initslaws.
Question 269.
What isthescope ofcompulsory licensing forcopyrightable works? Under what conditions can
compulsory licences begranted?WT/ACC/OMN/5
Page83
Reply
There isnoprovision oncompulsory licensing inOman 'sCopyright Law.
Question 270.
Please describe thecopyright enforcement process andremedies available under bothciviland
criminal law. What istheaverage duration oftimefrom thefiling ofacopyright infringement
complaint until final resolution ofthelitigation?
Reply
TheCopyright Lawprovides forcriminal penalties forinfringement ofcopyright. Itdoesnot
contain provisions onenforcement under civillaw.However, aperson whose righthasbeeninfringed
mayapproach theAuthority forSettlement ofCommercial Disputes.
Since theCopyright Lawisofrecent origin (June 1996) there isnotrack record ofaverage
timeduration inlitigation cases.
(b) Trademarks, including service marks
Question 271.
Please identify thechanges thatneedtobemade tothetrademark lawinorder tosatisfy TRIPs
requirements. When willthese changes bemade?
Reply
Werecognize thatourTrademark Lawmaynotbefullyconsistent withtheprovisions ofthe
TRIPs Agreement. Itisnotpossible forustoidentify thechanges thatneedtobemade, without
technical assistance from WTO andWIPO. Thenecessary changes willbemade induecourse. We
mayneedtransition period forthatpurpose.
Question 272.
Itisstated thattheterm ofprotection oftrademarks istenyears which canberenewed. Could
theGovernment ofOman clarify whether thisisaonetimepossibility orwhether theregistration
canberenewed indefinitely?
Reply
Theregistration canberenewed indefinitely.
Question 273.
According toparagraph 154oftheMemorandum, theperiod ofprotection fortrade marks is
10years andtheregistration canberenewed. Cantheregistration berenewed indefinitely, as
required byTRIPs Article 18?
Reply
Trademark registration canberenewed indefinitely.WT/ACC/OMN/5
Page84
Question 274.
Isthere arequirement tousetrademarks inorder toretain rights?
Reply
Ifthetrademark hasnotbeenusedforfiveconsecutive years itcanbedeleted, unless itsowner
submits ajustification fornotusing it.
Question 275.
Inthecontext oftherequirement touseatrademark, what would beavalid reason fornotusing
atrademark? Please explain.
Reply
Thejustification fornon-use hastobeprovided bytheowner ofthetrademark. Anyreasonable
justification would bevalid reason fornotusing thetrademark. Theacceptable reason fornon-use
ofatrademark would be:reasons beyond thecontrol ofthetrademark owner suchasdifficulty in
obtaining therawmaterial forproducing theproduct oranyother reason beyond hiscontrol, orfor
example boycott ofcountries exporting suchgoods.
Question 276.
Isregistration ofamark sufficient tonotify potential infringers oftheowner 'sexclusive right?
Does theright holder needtoprovide actual notice toaninfringer inorder toestablish liability?
Reply
According toArticle 2ofOman 'sTrademarks Law, aperson whohasatrademark registered
shallbeconsidered itsexclusive owner. Registration issufficient tonotify potential infringers ofthe
owner 'sexclusive right. According tothelawtherightholder isnotrequired toprovide actual notice
toaninfringer.
Question 277.
Could theGovernment ofOman explain howwell-known trademarks areprotected?
Reply
There isnoprovision inOman 'slawtoprotect well-known trademarks.
Question 278.
Arewell-known marks protected under thetrademark law? Howarewell-known marks defined
andwhat isthescope ofprotection forthem? Does Omani lawprotect well-known marks that
have notbeen registered inOman? What specific rights areavailable totheowner ofan
unregistered mark?
Reply
Please seereply 277.WT/ACC/OMN/5
Page85
Question 279.
What aretherights conferred toatrademark owner? Please explain.
Reply
Theowner oftheregistered trademark hasthesolerighttoproduce, import ordistribute the
trademarked goods andhastherighttoprevent anyother person from using histrade mark without
hispermission. Theowner alsohastherighttoassign ortransfer thetrademark withorwithout the
transfer oftheproject orenterprise producing thegoods. Theowner alsohastherighttolicensing.
Question 280.
Does arightholder inOman have theright toassign orlicence atrademark? What arethe
conditions?
Reply
Yes,arightholder hastherighttoassign orlicence atrademark. Hecanassign atrademark
withorwithout thetransfer ofownership oftheenterprise ortheproject.
Question 281.
Does theassignment ofatrademark needtoberecorded? What rights arelostifanassignment
isnotrecorded?
Reply
Assignment ofatrademark isrequired toberecorded. Ifitisnotrecorded, itwillnotbean
evidence against athirdparty.
Question 282.
Onwhat grounds maybeTrademark Registrar refuse toregister amark?
Reply
TheRegistrar mayrefuse toregister atrademark ifitfallswithin theprovisions ofArticle 2
oftheTrademarks Law. TheRegistrar mayalsorefuse toregister atrademark ifitisalready registered
insomeone else'sname ortheapplication iscontested byanother party. Inthatcase, theregistrar
shallawait thedecision oftheAuthority fortheSettlement ofCommercial Disputes.
Question 283.
What istheroleoftheRegistrar ininfringement actions? DoestheRegistrar approve infringement
actions orprovide anopinion onthem?
Reply
TheRegistrar hasnoroleininfringement actions.WT/ACC/OMN/5
Page86
Question 284.
Mayadverse decisions bytheTrademark Registrar beappealed inacourt oflaw? What Registrar
decisions maybeappealed? Please describe theappellate process.
Reply
Article 12oftheTrademarks Lawprovides thatanydecision oftheRegistrar rejecting the
registration orwithholding itonaparticular condition maybeappealed against totheAuthority for
Settlement ofCommercial Disputes, within 30daysofthedecision oftheRegistrar.
Question 285.
Arethere minimum limits onthesizeofpenalties fortrademark infringement?
Reply
There isamaximum limitonpenalties: imprisonment notexceeding three years and/or afine
notexceeding Omani Rials 500. There isnominimum penalty.
(c) Geographical indications, including appellations oforigin
Question 286.
Could theGovernment ofOman explain theexisting system ofprotection ofgeographical
indications?
Reply
TheSultanate ofOman atpresent doesnothave lawsorregulations ontheprotection of
geographical indications orappellations oforigin.
Question 287.
TheMemorandum doesnotappear tomention protection ofgeographic indications andappellation
oforigin.PleasedescribetheOmaniregimeforprotectionofgeographicindicationsandappellation
oforigin, andidentify anyprovisions thatarenotcompatible withWTO TRIPs requirements.
Reply
Please seereply toquestion 286.
(d) Industrial designs
Question 288.
TheMemorandum doesnotappear tomention protection ofindustrial designs. Please describe
theOmani regime forprotection ofindustrial designs, andidentify anyprovision thatarenot
compatible withWTO TRIPs requirements.WT/ACC/OMN/5
Page87
Reply
TheSultanateofOmandoesnotatpresenthavelawsorregulationsfortheprotectionofindustrial
designs.
Question 289.
How areindustrial designs, including textile designs, protected? Please explain.
Reply
Please seereply toquestion 288.
(e) Patents
Question 290.
Could theGovernment ofOman explain inmore detail theenvisaged system ofpatent protection
(i.e.patentable subject matter, compulsory licensing, government useetc.)? What isthetime
frame forthisnewsystem toenter intoforce?
Reply
Thedetails oftheenvisaged patent system areasfollows:
- patents thatmayberegistered arethose involving newinventions orinnovative ideas andmay
bemanufactured andarenotcontradictory withtheprovisions oftheIslamic Lawortherules
ofconduct;
- thecompulsory licence: TheBoard oftheGCC Bureau ofPatents maygrant acompulsory
licence ifthepatented invention isnotusedintheGCC States according toanapplication
submitted byanyperson afterthelapse oftwoyears from thedateofgranting thepatent (or
theexpiry oftheperiod following thetwoyears incaseoftheextension ofthepatent bythe
Board) provided thattheapplicant proves inhisapplication hisability tousetheinvention
industrially, against afaircompensation tobepaidforthepatent;
- government usage: TheGovernment oftheSultanate ofOman, ifthepublic interest sorequires,
maydecide thatoneofitsbodies mayutilize theinvention ifthepatent owner refuses, subject
totheapproval ofthesaidBoard andsubject topayment ofafaircompensation tobeprovided
forintheutilization decision. However, suchdecision maybecomplained against.
Since theGCC Patent System hastobeimplemented simultaneously byallGCC countries,
theyareconsidering andwillsoontakeadecision onthetimeframe foritsimplementation.
Question 291.
How arepatents currently protected? Please explain inmore detail.
Reply
There isnopatent protection system atpresent. TheGCC Unified Patent System hasbeen
agreed andarrangements arebeing made toimplement it.WT/ACC/OMN/5
Page88
Question 292.
InWT/ACC/OMN/2 itissaidthatthetermofprotection forpatents is15years withthepossibility
ofafurther extension of5years. Arethere anyconditions thathavetobefulfilled? Ifso,what
arethey? Please explain.
Reply
Thecondition isthattheapplication forrenewal should besubmitted atleast90daysbefore
theoriginal termisduetoexpire.
Question 293.
According toparagraph 157oftheMemorandum, theterm ofprotection forpatents is15years
from thedateofitsgrant. However, TRIPs Article 33requires atwenty-year termofprotection,
from dateoffiling. Does Oman intend tobring itstermofprotection forpatents intoconformity
withTRIPS requirements prior toWTO accession?
Reply
Yes,itwould dothatwhen itimplements theTRIPS Agreement.
Question 294.
Please provide acopyofthepatent lawcurrently inforce andacopyofthelegislation implementing
theUnified Patent System oftheGulf Cooperation Council.
Reply
There isnopatent lawcurrently inforce. By-laws toimplement theGCC Unified Patent System
havebeenprepared bytheGCC andwillbeimplemented byOman.
Question 295.
Does thepatent lawcurrently conform withtheTRIPs Agreement? What steps isOman taking
tobring itspatent lawintoconformity withTRIPs requirements? When doesOman expect its
patent lawtoconform fully withTRIPs?
Reply
There isnopatent lawatpresent. TheSultanate ofOman hasagreed toadopt theGCC Unified
Patent System which willbeimplemented shortly. Theconformity ofthiswiththeTRIPS Agreement
isunder study.
Question 296.
Does Oman intend tobecome amember oftheParis Convention fortheProtection ofIndustrial
Property, prior toWTO accession? What changes inthepatent lawwould have tobemade to
meet therequirements oftheParis Convention?WT/ACC/OMN/5
Page89
Reply
Weunderstand itisnotobligatory tojointheParis Convention asanecessary condition for
becoming aMember oftheWTO. Theobligation istoapply theprovisions oftheParis Convention
under theTRIPS Agreement. Wewould study thechanges inconsultation withourGCC partners.
Question 297.
What subject matter isexcluded from patentability under Omani law?
Reply
Thefollowing areexcluded from patentability:
1. Discoveries, scientific theories, mathematical methods, andcomputer programs.
2. Schemes, rules andmethods fordoing business, performing purely mental acts,orplaying
games.
3. Varieties ofplants, species ofanimals, orbiological processes usedtoproduce plants oranimals
withtheexception ofmicrobiological processes andtheproducts thereof.
4. Methods ofsurgical ortherapeutical treatment ofthehuman oranimal body, andmethods of
diagnosis applied tothehuman oranimal body withtheexception ofproducts usedinanyof
these methods.
Question 298.
DoesOman 'spatent lawprovide alltherights listed inArticle 28ofTRIPs, withrespect toproduct
andprocess patents? Ifnot,what rights arenotavailable?
Reply
Yes.
Question 299.
Arethere anyrestrictions onanowner 'sability toassign, transfer orlicence patent rights?
Reply
Assignment ortransfer ofapatent righttoathirdparty canonlybemade inconjunction with
alltheelements ofthebusiness.
Arightholder maylicence others toperform allorsome oftheactsofexploitation ofthepatent.
Suchlicence shallbemade inwriting signed bybothparties andapproved byanofficial authority in
oneoftheGCC countries. Thelicensing contract should beregistered inthePatent Office records
andtheprescribed feeshould bepaid.WT/ACC/OMN/5
Page90
Question 300.
Please describe thepatent lawprovisions relating toworking requirements. Does importation
satisfy theworking requirements?
Reply
Normally apatent should beexploited onasufficient industrial scaleintheGCC States within
twoyears fromthedateofgrant ofpatent. However, importation canmeettheworking requirement
foraninterim period untilasufficient industrial exploitation ofthatinvention intheGCC States has
beenachieved.
Question 301.
Under what conditions maycompulsory licences begranted, including licences forusebythe
government andthird parties authorized bythegovernment? Does thepatent lawsatisfy the
requirements ofArticle 31ofTRIPs?
Reply
TheGovernment canauthorise oneofitsagencies toexploit apatent should public interest
sorequire. However, thisissubject totheapproval oftheBoard ofDirectors oftheGCC Patent Office
andsubject topayment offaircompensation totherightholder.
TheBoard ofDirectors oftheGCC Patent Office maygrant acompulsory licence upon the
request ofanyperson ifthepatent hasnotbeenexploited bytherightholder foraperiod oftwoyears
from thedateofitsgrant. Theapplicant forlicence hastoprove inhisrequest hisability towork
thepatented invention sufficiently intheGCC countries. Afaircompensation hastobepaidtothe
rightholder.
Wewould liketoheartheviews ofourtrading partners onthecompatibility ofthisprovision
withArticle 31oftheTRIPS Agreement.
Question 302.
What isthesizeofOman 'sPatent Office? How longhasthePatent Office been inoperation?
Reply
There willbeajointPatent Office ofGCC countries located inRiyadh.
Question 303.
How many applications aresubmitted annually? What istheaverage pendency period foran
application? How many patents have been issued todate? Inwhat technological categories?
Reply
Please seereply toquestion 302. ThePatent Office isintheprocess ofbeing established.WT/ACC/OMN/5
Page91
Question 304.
Canpatent revocation decisions beappealed, asrequired byArticle 32ofTRIPs?
Reply
Yes,thedecision ofthePatent Office canbeappealed; anappeal liestotheGCC Committee
onUnified Patent System.
(f) Protection ofplant varieties
Question 305.
According toparagraph 158oftheMemorandum, theUnified Patent System oftheGCC does
notprovide protection forplant varieties. HowdoesOman intend toprovide protection toplant
varieties asrequired byArticle 27oftheTRIPs Agreement?
Reply
TheSultanate ofOman would, atanappropriate time, havelawsandregulations toprovide
protection forplant varieties.
Question 306.
TheGovernment ofOman explains thatplant varieties arenotprotected under theUnified Patent
System. Does Oman intend tointroduce aprotection system?
Ifso,what would bethemain elements andthetime-frame?
Reply
Please seereply toquestion 305.
(g) Layout-designs ofintegrated circuits
Question 307.
TheMemorandum doesnotappear tomention protection oflayout designs ofintegrated circuits.
PleasedescribetheOmaniregimeforprotectionoflayoutdesignsofintegratedcircuits,andidentify
anyprovisions thatarenotcompatible withTRIPs requirements.
Reply
There isnolegislation atpresent ontheprotection oflayout designs.
Question 308.
How arelayout designs protected? Please explain.
Reply
Please seereply toquestion 307.WT/ACC/OMN/5
Page92
(h) Requirements onundisclosed information, including trade secrets andtestdata
Question 309.
TheMemorandum doesnotappear tomention protection ofundisclosed information, including
trade secrets andtestdata. Please describe theOmani regime forprotection ofundisclosed
information, including trade secrets andtestdata, andidentify anyprovisions thatarenot
compatible withTRIPs requirements.
Reply
There isnoparticular lawonthissubject.
Question 310.
How isundisclosed information protected? Please explain.
Reply
Please seereply toquestion 309.