RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/ALB/6 
5 July 1999 
 (99-2750) 
Working Party on the 
Accession of Albania  
 
 
 
 
DRAFT REPORT OF THE WORKING PARTY  
ON THE ACCESSION OF ALBANIA 
 
 
Introduction 
 
1. In November 1992, the Government of Al bania requested acces sion to the General 
Agreement on Tariffs and Trade (GATT 1947). At the 48th Session in December 1992, the GATT 
1947 CONTRACTING PARTIES established a Working Party to examine the application of the 
Government of Albania to accede to the General Agreement under Article XXXIII, and to submit to 
the Council recommendations which may include a draf t Protocol of Accession.  Membership of the 
Working Party was open to all contracting parties indi cating the wish to serve on it.  Having regard to 
the Decision adopted by the General Counc il on 31 January 1995, the GATT 1947 Accession 
Working Party was transformed into a WTO Accessi on Working Party.  The terms of reference and 
the membership of the Working Party ar e reproduced in document WT/ACC/ALB/3. 
 2. The Working Party met on 29-30 April and 29 October 1996; 2 October 1998;  
27 January 1999, 13 April 1999 and …  under the Chairm anship of Mr. A. Pinto de Lemos (Portugal). 
 3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Albania, the questions s ubmitted by Members on the foreign trade regime of 
Albania, together with the replies thereto, and other information provided by the authorities  
(WT/ACC/ALB3/4/8; WT/ACC/ALB/23; WT/ACC/ALB/2/Rev.1; WT/ACC/ALB/25; WT/ACC/ALB/25/Rev.1; WT/ACC/ALB/26 – WT/ACC/ALB/42), including the following legislative texts: 
- Customs Code of the Republic of Albania; 
- Implementing Provisions on Customs Code; - Law No. 8464, dated 11 March 1999 on Standardization; - For the Preparation, Adoption and Appl ication of Technical Regulation and the 
procedures for Assessment of Conformity with Technical Regulation and Standards; 
- Decree for the Exchange of Information for Standards and Technical Regulations; 
- Decision No. 242, dated 28 May 1999 “The Approval of the Code of Good Practice 
for Adoption, Approval and Application of Standards”; WT/ACC/SPEC/ALB/6 
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- A Draft Decree on the Criteria and Competencies in the Fields of Standardization, 
Certification and Accreditation;  
- Law No. 8466, dated 24 March 1999 “On Antidumping”; - Law No. 8477, dated 22 April 1999 “ On some changes and supplements on the law 
No. 7819, dated 27 April 1994, for Industrial Property”; 
- Law No. 7564, dated 19 May 1992 On Copyright; 
- Law No. 8488 Dated 13 May 1999 “On Prot ection of Topographies of Integrated 
Circuits”; 
- Draft Law "On the protection of personal data"; - Draft Law on the right to information over the official documents; 
- Law on Customs Tariffs of October 1992; 
- (Law No. 7609) and amendments Law on Priority Tourism Development Zones (Law 
No. 7665) and amendments of January 1993; 
- Law for Telecommunications and amendmen ts (Law No. 8038) of November 1995; 
- Law on Competition of December 1995; 
- Law No. 8044 Law on Insurance and Re-insurance Companies (Law  No. 8081) 
March 1996; 
- Law on Customs Valuation (Law No. 8187) of 1997; 
- Law on Excise Taxes (Law No. 7678) and amendments; 
- Law "On the Bank of Albania" (Law No. 8269) of December 1997; 
- Strategy on Privatization of March 1998; 
- Law on Privatization of March 1998; 
- Draft Maritime Code; 
- Decree on the Code of Good Practice for Pr eparation, Adoption and Application of 
Standards; 
- Draft Law "On Free Zones"; 
- Law on Securities; 
- Draft Law on Protection of Topographies of Integrated Circuits; 
- Law on Sales and Purchase of Sites; 
- Economic Policies and Development Tendencie s of Albania in the Short and Medium 
Term; 
- Report on Maritime Legislation; 
- Privatization Strategy of State Owned Companies in Primary Importance Sectors 
(December 1997) 
- Law No. 8301 "On Customs Duties Changes for Some Agricultural Inputs" (12 March 
1998); 
- Law on Industrial Property (8 June 1994) 
- Law No. 8308 "For Road Transports" (18 March 1998); 
- Law No. 7923 "For some Changes to Law No. 7564 of 19 May 1992 For Copyright" 
(19 April 1995) 
- Law No. 8348 "On Excise Taxes in the Republic of Albania" 
- Law "On Value Added Tax"; 
- Law No. 8306 "On the Privatization Strate gy of Primary Importance Sectors" (14 
March 1998); 
- Law No. 8334 "On the Privatization of Co mmercial Enterprises which Function in 
Non-strategic Sectors (23 April 1998); 
- Law No. 8365 "Banking Law of the Republic of Albania" (2 July 1998); 
- Law No. 8112 "On Some Changes in the Law 7971 of 26 July 1995 "On Public 
Procurement" Amended with Law 8074 of  22 February 1996" (28 March 1996);  
- Law "For the Legal Profession in the Republic of Albania"; 
- Law No. 7829 "For Notary" (1 June 1994); 
- Law No. 7908 "On Fishery and Aquaculture" (5 April 1995); 
- Law "For the Veterinary Serv ice and Inspectorate" (1993); 
- Law No. 7810 "Of Higher Education in th e Republic of Albani a" (6 April 1994);  WT/ACC/SPEC/ALB/6 
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- Draft Law "On Undistributed Agricultural Lands"; 
- Draft Law "On Leasing Agricultural Land, Forest Land, Meadows and Pastures which 
are State Property"; 
- Draft Law "For the Transfer of Ownership of Agricultural Land, Meadows, Pastures 
and Forests"; 
- Draft Law "On the Entry, Sojourn and Employ ment of Foreigners in the Republic of 
Albania"; 
- Draft Law "On the Telecommuni cations Regulatory Body"; 
- Decision No. 12 on the Rules of Public Procurement; - Law No. 7971 on Public Procurement; 
- Law No. 8112 on some changes in the Law 7971 on Public Procurement, amended 
with Law 8074; 
- Council of Ministers Guidelines No. 1; - General Conditions of Contract; Procurement of Works; - Request for Quotation on Goods; 
- Invitation to Quote for Small Works; 
- Standard Bidding Document for Procurement of Goods; - Standard Bidding Documents Approved by the Decree No. 12. 
 
 
4. The representative of Albania said that member ship in the WTO was one of Albania's most 
important economic policy objectives.  From 1944  –1992, Albania was the antithesis of a market 
economy.  Private ownership was completely forb idden and all economic activity was controlled by 
the State, without exception.  For much of this period, Albania's economic, political and cultural ties 
with the rest of the world were reduced to an absolute minimum.  Albania's case was unique in terms 
of the intensity of the economic centralization a nd isolation.  The present situation was strikingly 
different.  The Albanian Government had passed laws providing for private ownership, 
entrepreneurial activity, open competition, bankruptc y, foreign investment, protection of consumers, 
privatization of small, medium and large enterprises, and many other elements of a modern commercial legal regime.  The steady growth of domestic and foreign investment was a vote of 
confidence by the private sector in Albania's commerc ial law reforms.  The Albanian government had 
dramatically reduced its role in almost all fields of economic activity.  As a result, the private sector 
accounts for about 80-85 percent of GDP, 56 percen t of exports and 82 percent of imports.  
Approximately 76 percent of Albania's workforce wa s engaged in private business.  Price controls had 
been completely eliminated on goods, although a pr ice reference scheme exis ted for pharmecuticals.  
A limited price control system existed for services,  a full and complete listing of which was provided 
to members of the Working Party in document WT/ACC/ALB/25.  Albania's national currency, the 
Lek, was internally convertible and had been floa ting freely since 1992.  The relative stability of the 
Lek was one sign, among others, that Albania's effort s to exercise fiscal and monetary control, and 
more generally to ensure macro-economic stability, ha d been successful.  Albania had turned its back 
on isolationism and pursued a program to strengthen its ties with the rest of the world, concluding 
bilateral economic, trade and industrial agreements  with 30 countries and other 15 agreements were WT/ACC/SPEC/ALB/6 
Page 4  
 
under negotiations.  Albania was a member of the In ternational Monetary Fund, the World Bank, the 
European Bank for Reconstruction and Developm ent, the Black Sea Economic Initiative and the 
organization of Islamic States.  Albania was work ing towards an Association Agreement with the 
European Union, and, membership in the World Tr ade Organization.  Over the past years, Albania 
had vigorously pursued a program to establish a market economy and to become a full participant in the international community.  The areas of tax re form and privatisation were the most important 
problems of economic reform.  More than 75 pe r cent of national wealth had been privatized 
including:  96 per cent of the agriculture land, 100 per cent of the services, 100 per cent of agriculture 
mechanics, 100 per cent of road transport.  A great  deal of progress had been made in a relatively 
short time, and the most important elements of a market-based economy have been established.    
5. The representative of Albania said that trade libera lization had been one of the main pillars of 
economic stabilization and reform along with price liberalization, exchange liberalization, fiscal 
control, monetary restraint and rapid privatizati on of agricultural land and small enterprises.  The 
choice was made early in the reform process to pursue rapid trade liberalization rather than slow, step-
by-step liberalization.  This choice was partly di ctated by the severity of Albania's economic and 
social crisis at the time.  The collapse of Albani an production meant that Albania had to open its trade 
regime in order to ensure the supply of consumer  goods and other commodities needed to rebuild the 
economy.  The Government of Albania recognized  that an open trade regime made important 
contributions to Albania's economic and social well- being.  The representative of Albania highlighted 
the main characteristics of Albania's trade regime:  a simple import tariff structure comprised of only four ad valorem  tariff levels:  zero, seven, twenty-fi ve and forty percent; no tariff peaks, only ad 
valorem  tariffs were applied, no fixed tariffs or tari ff rate quotas existed; the maximum tariff rate was 
40 per cent but the rate applied only for 14 items; 45 per cent of all tariff line items have rates that are 
10 per cent or less;  67 per cent of all items have rat es that are 20 per cent or less; 97 per cent of all 
items have rates that are 30 per cent or less;  no import surcharges; no quantitative restrictions on 
imports or exports, except to protect the environment or assist in infant industries; no export subsidies; no restrictions on current transactions; no trade-related investment measures; no internal 
taxes or other charges that are higher for imports than  for domestic products.  In addition, the role of 
State foreign trading enterprises had been redu ced dramatically. Despite recent disturbances, 
macroeconomic developments had been broadly on track.  An episode of civil disorder, together with 
the situation in Kosovo, had redu ced economic and investor confiden ce, but the government estimated 
that the momentum from earlier in the year would r esult in real GDP growth of 8 per cent for the year 
1999, only slightly below the targeted 10 per cent a nd still implying a return of output to the level 
prevailing before the devastating crisis of spring 199 7.  Other important indicators showed that the 
macroeconomic stability program has been successful:  Relatively stable  and low rates of inflation:   WT/ACC/SPEC/ALB/6 
 Page 5 
 
 
8.7 per cent in 1998 and a forecast of 7 per cent for 1999.   Exchange rate:  stable prices had modestly 
strengthened the Lek vis-à-vis the US dollar and av erage exchange rate in 1997 was lek 151.5; in 
1998 it was lek 149.  Budget revenues had increased in  1998 as a result of tax collection.  Tax revenue 
as a share of GDP had increased to 12.5 per cent; for the first time current expenditures (not counting 
interest payments) were covered by revenues.  Th e public share of GDP was declining, the private 
sector's share stood at 80 per cent of GDP.  The trad e share of GDP had increased: in 1998, the share 
was 20 per cent.  The government was firmly comm itted to continue macroeconomic stabilization and 
structural reform.  6. In the expectation that the accession negotiations  would be finished e xpeditiously in 1999, 
permitting Albania to take part in the new series of multilateral trade negotiations, the representative 
of Albania submitted a Chart On Conformity of the New Albanian Legislation concerning the WTO 
and Status of Draft Legislation and Amendments as follows:  WT/ACC/SPEC/ALB/6 
Page 6 
Chart on the Implementation of Draft Laws, Amendments, and Decisions of the Council of Ministers for Compliance with WTO 
Agreements   
 
 
Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement  
Date of Implementation  
 Agreement on Agriculture 
 
Albania is in compliance with the Agreement on Agriculture.  No 
additional changes in laws or decisi ons of the Council of Ministers are 
required for Albania to be in compliance with WTO.  
There are no laws or decisions being drafted 
or amended  
Not applicable. 
 
Agreements on SPS  
 
The following are separate drafts of Decisions of the Council of 
Ministers: 
 1. "Criteria and Competencies in the Fields of Standardization, 
Certification, and Accreditation" 
2. "Exchange of Information on Standards and Technical Regulations" 3. "On Some Changes to the Law Number 7643, On State Sanitary 
Inspectorate" 
4. "The Approval of the Code of Good Practices for Adoption, Approval and Application of Standards", Decision of the Council of 
Ministers, Number 242, dated 28.05.99  
 
 
 1-2. To be in compliance with SPS. 
 
  
3. To be in compliance with the standstill and 
transparency provisions of SPS. 4. To be in compliance with SPS.  
 
 
 1. At the time of accession. 
 
2. At the time of accession.  
3. At the time of accession. 
 4. At the time of accession. 
 
Agreement on Textiles and Clothing 
 
Albania is in compliance with the Agreement on Textiles and Clothing.  
No additional changes in laws or decisions of the Council of Ministers 
are required for Albania to be in compliance with WTO.  
There are no laws or decisions being drafted 
or amended  
Not applicable. 
 
Agreements on TBT 
 
The following are separate drafts of Decisions of the Council of 
Ministers:  
1. "Exchange of Information on Standards and Technical Regulations" 
2. "The Preparation, Adoption and Application of Technical  
 
  
1-2. To be in compliance with TBT. 
  
 
  
1. At the time of accession. 
2. At the time of accession.   WT/ACC/SPEC/ALB/6
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Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement  
Date of Implementation  
Regulations and the Procedures for Assessment of Conformity with 
Technical Regulations and Standards" 
   
 
 
 
Agreement on Trade-Related Investment Measures 
 
Albania is in compliance with the Agreement on Trade-Related 
Investment Measures.  No additional changes in laws or decisions of the Council of Ministers are required fo r Albania to be in compliance with 
WTO. 
  
There are no laws or decisions being drafted 
or amended  
Not applicable. 
 
Agreement on Implementation of Article VI of the GATT 1994 
 
The anti-dumping agreement is covered by the Law "On Antidumping", 
Number 8466, dated 24.03.99.  The following are separate drafts of 
Decisions of the Council of Ministers: 
 1. "The Organization and Function of the Anti-dumping Office" 
2. "The Definitions and Fulfilment of the Application Forms" 
3. "The Content of the Public Notice for the Initiation of the Investigation" 
4. "The Confidential Information" 
5. The Public File (Registry) of the Antidumping Office" 
6. The Notice of the Final Decisions" 
   
The Council of Ministers is charged to issue 
the bylaws related to the Law on 
Antidumping.  
 
 
 
 1. By the end of 1999. 
2. By the end of 1999. 
3. By the end of 1999.  
4. By the end of 1999. 
5. By the end of 1999. 
6. By the end of 1999. 
 
 
Agreement on Implementation of Article VII of the GATT 1994 
 
"Customs Code", Law Number 8449, dated 27.01.99. 
 
"Implementing Provisions of the Customs Code", Decision of the Council of Ministers, Number 205, dated 13.04.99. 
 
The Interpretive Notes of the WTO Customs Valuation Agreement are  
The Customs Code of Albania defines 
Albania's customs procedures. 
The Decision of the Council of Ministers, Number 205 are the implementing provisions 
which are in compliance with customs 
valuation procedures.  Albania is in  
Albania is in compliance since May 15, 1999 
with the adoption of the Customs Code and the 
Implementing Provisions of the Customs Code.  WT/ACC/SPEC/ALB/6 
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Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement  
Date of Implementation  
part of the Implementing Provisions of the Customs Code, Annex 6, 
"Interpretive Notes for Customs Valuation"  compliance with the Customs Valuation 
Agreement and the Implementation of Article 
VII of GATT 1994. 
 
 
Agreements on Pre-Shipment Inspection 
 
Pre-shipment inspection is covered by the Customs Code, Article 11(4), 
last sentence of the paragraph. 
  
Provision on pre-shipment inspection.  
No further action required. 
 
Agreement on Rules of Origin 
 
Rules of Origin are covered by the "Implementing Provisions of the 
Customs Code", Decision of the Council of Ministers, Number 205, dated 13.04.99. 
  
To be in compliance with rules of origin.  
At the time of accession. 
 
Agreement on Import Licensing Procedures   
 
Albania will draft general legislation on import licensing procedures. 
 The following are laws that are to be amended: 
 
1. "On Seeds and Saplings", No. 7659, dated 12.01.93 
2. "Law on Veterinary Services", No. 7674, dated 23.02.93 
3. "Law on Plant Protection Services", No. 7662, dated 19.01.93  
To be in compliance with WTO import 
licensing procedures.  
 
 
1-3. The changes in these laws are to simplify 
the licensing procedures.  
At the time of accession. 
  
 
1. At the time of accession. 
2. At the time of accession. 
3. At the time of accession. 
 
Agreement on Subsides and Countervailing Measures   
 
Albania is in compliance with the Agreement on Subsidies and 
Countervailing Measures.  No additional changes in laws or decisions 
of the Council of Ministers are required for Albania to be in compliance 
with WTO.  
The drafting of a law on countervailing 
measures has been suspended.  The Republic 
of Albania will reconsider  its decision to draft 
such a law after accession; if Albania chooses to draft this legislation it will be done 
according to WTO procedures. 
  
Not applicable.   WT/ACC/SPEC/ALB/6
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Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement  
Date of Implementation  
 Agreements on Safeguards 
 
Albania is in compliance with th e Agreement on Safeguards.  No 
additional changes in laws or decisi ons of the Council of Ministers are 
required or Albania to be in compliance with WTO.  
The drafting of a law on safeguards has been 
suspended.  The Republic of Albania will 
reconsider its decision to draft such a law after accession; if Albania chooses to draft 
this legislation it will be done according to 
WTO procedures.   
Not applicable. 
 
General Agreement on Trade in Services 
 
The following are laws that are being amended: 
 1. "Law on Insurance and Reinsurance Companies" 
2. "Law on Investment Funds" 
 The following are draft laws: 
3. "Law on Theatres" 
4. "Law on Libraries"   
1. Eliminates the restriction on joint ventures. 
2. Seeks to improve the securities regime, and provide a framework for asset management.  
3. To create conditions  on market access for 
private foreign and domestic service providers on theatres, live bands, operas. 
4. To create conditions  on market access for 
private foreign and domestic library service providers.  
 
   
1. Two years from the time of accession. 
2. One year from the time of accession.  
3. At the time of accession. 
  
4. At the time of accession. 
  
 
 
Agreement on Trade-Related Aspects of Intellectual Property Rights 
 
Albania is in compliance with TRIPs.  The following have been 
substantive changes in legislation to be in compliance. 
 
The following are amendments to laws:  
1. "On Copyright" 
2. "On Some Changes to the Law on Copyright"  
Compliance with TRIPs 
 
1-2. To bring Albanian legislation in 
compliance with the copyright provisions of TRIPs. 
 
  
 
 
1-4.  Are already enforced and will be in 
compliance with WTO TRIPs Agreement.    WT/ACC/SPEC/ALB/6 
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Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement  
Date of Implementation  
 
The following are Laws and draft Decisions of the Council of 
Ministers: 
 3. Law "On Protection of Topographies of Integrated Circuits" Number 
8488, dated 13.05.99 
4. Law "On Some Changes and Supplements on the Law No. 7819, dated 27.04.94, For Industrial Property", Number 8477, dated 22.04.99 
  
3-4. To bring Albania patent and trademark 
legislation in compliance with TRIPs; 4.  Also 
creates the Albanian Directorate of Patent and Trademark. 
 
Agreement on Trade in Civil Aircraft 
 
Albania is in compliance with the Agreement on Trade in Civil 
Aircrafts.  No additional changes in laws or decisions of the Council of Ministers are required for WTO compliance.  
There are no laws or decisions being drafted 
or amended  
Not applicable. 
 
Agreement on Government Procurement 
 
The following are separate drafts of Decisions of the Council of 
Ministers: 
1. "The Standard Tender Document for the Pre-Qualification of Goods" 
 
2. "The Standard Tender Document for the Pre-Qualification of 
Construction" 
3. "The Standard Tender Document for the Procurement of Goods 
(Those which are Large and Complex)"  
Compliance with gover nment procurement. 
  
 
 
1. At the Council of  Ministers awaiting 
approval. 
2. At the Council of  Ministers awaiting 
approval. 
3. At the Council of  Ministers awaiting 
approval. 
4. "The Standard Tender Document for the Procurement of Systems 
(Those which are Large and Co mplex) for Telecommunication, 
Information Technology, etc." 5. "The Standard Tender Document for the Procurement of 
Construction (Those which are Large and Complex)" 
6. "The Standard Tender Document for the Procurement of Whole Services (Those which are Large and Complex)" 
7. "The Standard Tender Document for the Procurement of Complex 
Services (for which the Valu e and Duration are Specified) 
8. "The Standard Tender Document for the Procurement of Basic These Decisions will provide transparent rules 
for submission of tenders in the specified 
areas. 4. At the Council of  Ministers awaiting 
approval. 
 5. At the Council of  Ministers awaiting 
approval. 
6. At the Council of  Ministers awaiting 
approval. 
7. At the Council of  Ministers awaiting 
approval. 
   WT/ACC/SPEC/ALB/6
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Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement  
Date of Implementation  
Services (for which the Value and Duration are Specified)" 8. At th e Council of Ministers awaiting 
approval. 
 
 
Other Legislation  
 
Excise taxes: 
 The following are laws that are being amended: 
 
1. "On Some Changes to the Law Number 8437 (On Excise Taxes), dated 28.12.98"  
 
 To eliminate discriminating excise taxes rates 
and categories.  
 
 1. At the time of accession. 
 
Export prohibitions: 
 
All Decisions of the Council of Ministers on export prohibitions related 
to tariff lines under Chapter 41.01-41.03, Chapter 72.04, and Chapter 74.01-74.19 of the HS will be repealed.  
To be in compliance with rules on exports 
Albania will lift export prohibitions on the 
goods listed in the relevant chapters.  
At the time of accession. 
 
 
 WT/ACC/SPEC/ALB/6 
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7. In their opening remarks, members of the Work ing Party welcomed and supported the request 
from Albania to accede to the WTO.  In acknowledgi ng the huge impact in Albania of the difficult 
situation in the Balkans, where large populations had been uprooted, productive structures destroyed 
and employment possibilities curtailed by the lack of capital, technology, training and markets, some 
members emphasized that adherence to the multilatera l rule-based system would consolidate Albania's 
reforms and transitions towards a free market econo my system, enhance the universality of the WTO, 
and bring mutual benefits to Albania and Memb ers of the WTO.  Members expected Albania's 
accession to proceed expeditiously.  8. The Working Party reviewed the economic polici es and foreign trade regime of Albania and 
the possible terms of a draft Protocol of Accessi on to the WTO.  The views expressed by members of 
the Working Party on the various aspects of Albani a's foreign trade regime and on the terms and 
conditions of Albania's accession to the WTO are summarized below in paragraphs 8 to ..... 
 
ECONOMIC POLICIES  
Monetary and Fiscal Policy   
9. The representative of Albania said that the exemptions from profit taxes were given to 
juridical persons  engaged in production activities.  In accordance to the "L aw On Personal Income 
Tax", foreigners and nationals we re given equal treatment in the case of profit taxes and exemptions 
from profit taxes.  The taxable treatment of indivi duals and exemptions were applied equally, there 
was non-discrimination.   
10. In response to requests for information on th e government's economic policy objectives, the 
representative of Albania stated that the main object ive of the Bank of Albania was to achieve price 
stability and to maintain this stability over time.  The monetary policy of the Bank of Albania was elaborated to serve the achievement of price stab ility.  The proper monetary instruments were chosen 
for the same purpose.  The Bank of Albania was committed to following a course of prudential and 
relatively strict monetary policy, keeping the contro l over the growth of broad money.  The results of 
the monetary policy of the Bank of Albania we re measured through the realization of three 
quantitative monetary objectives, i.e: 
- maintaining a floor on net internati onal reserves of the Bank of Albania; 
- maintaining a ceiling on the net domestic assets of the Bank of Albania; and 
- maintaining a ceiling on the net credit of the banking system of the government. 
  WT/ACC/SPEC/ALB/6 
 Page 13 
 
 
11. To implement the monetary policy, Bank of Alba nia used direct and indirect instruments.  
The direct instruments which are used define the minimum level of interest rates for time deposits at 
the state-owned banks and the limit of credit for th e economy.  The indirect instruments which are 
used are the percentage of refinancing and the rate of required reserves.  The Bank of Albania uses the 
direct instruments more intensiv ely than the indirect means.  
 
12. In determining the interest rate for deposits , the Bank of Albania accounts for the rate of 
growth in inflation to maintain stable real and pos itive interest rates to retain the public’s confidence 
in the banking system.  The rate of growth in the money supply is a second instrument that is used to determine the interest rates.  
13. This was the framework of monetary policy that  has been implemented in Albania since 1993 
and it is foreseen to be implemented during thre e other future years. The policy and monetary 
program were compiled in cooperation with IMF (i n the framework of ESAF 1 and 2 Agreements).  
In 1998, the Bank of Albania’s main objective for 1998 was realized, even better than it was 
forecasted. The annual level of inflation was 8.7 per ce nt compared with the 10 per cent level that was 
anticipated.  (During 1997, the rate of inflation was 42.1 per cent.)  The realization of the money 
supply objectives of the Bank of Albania was also at  levels better than those foreseen.  It was 
forecasted that money growth would be 23 per cent at the end of 1998; however, the growth in money 
was only 20.7 per cent.   The net international reserves was US$5 million US over the limit of the 
ceiling, providing a cover for the demand for imports.  (It was foreseen that the level of reserves was 
to be 3.8 months of imports compared with 4.7 m onths of imports).  Net domestic assets of the Bank 
of Albania and net credit of the banking  system fo r the government were realized at less than the 
ceiling.  
 
14. The monetary program for 1999 was compiled in that manner to provide broad money growth 
in accordance with the obj ective of inflation, which was foreseen to be 7 per cent on an annual level.  
The level of inflation for the first five months of 19 99 shows that in spite of the situation in the region 
the 7 per cent target will be realized.  Broad money growth was expected to be increased about 15 per 
cent.  
 15. Concerning fiscal policy, since 1998, the Al banian Government had implemented its 
macroeconomic stabilization packag e.  The Government has used financial and economic measures 
respecting its fiscal targets, reducing the domestica lly financed deficit through the combination of 
measures focused on an increase of budget revenue and tightening the increase of primary expenditures.  All the domestic fiscal efforts suppor t the monetary policy objectives, reducing the rate 
of inflation to 8.7 per cent for 1998 compared with  42 per cent in 1997.  This is because of a very WT/ACC/SPEC/ALB/6 
Page 14  
 
large increase in private transfers and the stabilizatio n of the domestic currency.  The Government of 
Albania has guaranteed further fiscal consolidation to  keep its growth in inflation in line with its 
principle trading partners by 2001.  During the firs t 6 months of 1999, the government's fiscal deficit 
was stable.  For the remainder of 1999, the fiscal deficit, financed from domestic sources, will be 
reduced to 5.1 per cent of GDP and 3 per cent of GDP by 2000, 1 per cent less than in 1998, and less 
than half of the level in 1997.  This reduction w ill support an increase of private sector credit and will 
facilitate an increase in domestic savings.  
 16. Necessary measures to meet the deficit targets had been accomplished.  That is, government 
revenue as a percentage of GDP is increased, primarily from tax revenue, as a result of the implementation of 10 per cent tax on earned interest income, receipts from exci se taxes, the solidarity 
tax (a supplementary income tax to finance the a dditional expenditures for pub lic order after the civil 
disorder of September 1998), tariff revenues, a nd improvements in anti-smuggling measures at the 
border.  The general increase in revenue will be peak  at 0.6 per cent of GDP.  From the expenditure 
side, there will be savings in all areas of budget e xpenditures which serve as future sources to finance 
the increase in operation and maintenance expenditu res and government investments as well.  To 
increase the expenditures in infrastru cture, health, education, etc. above the average levels and to 
reach fiscal consolidation, it was necessary to re duce tax rates and to broaden the tax base.  The 
growth rate in GDP was forecasted to be 7.8 per ce nt in 1999.  The public sector contribution to GDP 
will be reduced through privatization and through the improvements due to efficiencies of the 
government's public administration program through  a reduction in the number of employees in the 
public sector and increase of the salaries of techni cally skilled staff in the public sector. Albania 
would  implement a well functioning market for ag ricultural land by maintaining the full productive 
capacity of the agricultural sector. 
 
17. With regard to the foreign debt, Albania had ma intained its target.  At the end of 1998, the 
medium and long-term foreign debt, including the arr ears, is at 30 per cent of GDP.  In 1999, the 
service of foreign debt is forecasted to be about US$26 million, or 8.5 per cent of exports on goods 
and services and less than 1 per cent of GDP.  Albania has had very positive results in the payments of 
arrears.  Albania would  continue its efforts to im prove its relations with fo reign creditors.  Albania 
aims to terminate the bilateral agreements with Ru ssia and Italy for renegotiating the terms of its debt, 
and it has begun the negotiations with other creditors to  make payments of arrears at least in line with 
competitive conditions with those of the Paris Cl ub Convention.  Finally, the Albania aimed to 
improve the control over foreign debt and foreign aid, and to improve measures to utilize the sources 
of aid funding.   WT/ACC/SPEC/ALB/6 
 Page 15 
 
 
Foreign Exchange and Payments 
 
18. The representative of Albania said that exchange control authority was vested in the Bank of 
Albania.  Foreign exchange for payments abroad could be obtained freely subject to documentation 
requirements (application, contract and invoice).  Re patriation requirements were attached to receipts, 
or the disposal of foreign exchange earnings from exports or re-exports.  Payments for and proceeds 
from invisible transactions were not restricted.  Tr avellers could bring in or take out any amount in 
domestic or foreign currencies.  Al bania had Article XIV under the Artic le of Agreement of the IMF.  
There were controls on capital transactions.  The cu rrency of Albania (Lek) floated independently and 
the current exchange rate was US$1=lek 150.  Th e Bank of Albania calculated the daily average 
exchange rates for the US dollar and 22 other cu rrencies.  Government and commercial bank rates 
were based on market rates.  In response to furt her enquiries, the representative of Albania clarified 
that Albania did not apply any restrictions upon foreign exchange related to investment, the quantity of an investment, the amount of foreign currency th at could be exchanged or the ability of foreign 
investors to repatriate profits and/or the money invested.  In response to further questions the 
representative of Albania clarified that its legisl ation did not apply any restrictions on foreign 
exchange related to any type of investment, the quantity of an investment, the amount of foreign 
currency that can be exchanged, and the ability of foreign investors to repatriate their profits in 
foreign currencies or in Lek which were earned through their investment (e.g., every type of 
investment including deposits) and/or the initial cap ital invested.  There were no restrictions on the 
access to foreign exchange to an amount of foreign ex change attributable to a foreign enterprise. That 
is, there were no provisions in the Law that restri ct exchange such that imports are, in effect, 
restricted. Foreign exchange controls do not exist as a means to restrict or limit imports.  
Investment Regime 
 
19. The representative of Albania said that the Government promoted private sector investment, 
foreign and domestic, with a view to achieving di versification by gradually reducing dependence on 
agriculture as the dominant source of income by promoting the development of manufacturing,  
fisheries and tourism and other services.  Other investment objectives included job creation for the 
expanding local workforce, gaining access to fo reign markets through foreign private-sector 
marketing channels,  and fo reign equity participation in large, cap ital-intensive projects.  Repatriation 
of capital and profits was allowed freely.  In r esponse to questions concerning the application of 
national treatment and most-favoured-nation treatment to  foreign direct investment, he added that the 
Law No. 7764 "On Foreign Investment" provided equita ble and fair treatment to foreign investors. 
Except the right to buy agricultural land which wa s provided only to Alba nian nationals, national 
treatment and most-favoured-nation treatment were acco rded to foreign direct investment. Foreigners WT/ACC/SPEC/ALB/6 
Page 16  
 
could in certain conditions lease agricultural land up to  99 years, but they cannot buy agricultural land 
in Albania.  Article 8, (points 1 and 2) of Law No. 7764 "On Foreign Investment" provided for the 
right to impartial dispute settlement. According to this Article, foreign investors had the right to 
choose the domestic appeal procedures as well as international procedures.  
State Ownership and Privatization  
20. Some members of the Working Party requested  details concerning progress in Albania's 
privatization programme and plans to retain Stat e ownership in enterprises or sectors.  Further 
questions addressed relations between the State and company management, the application of 
competition legislation to State-owned enterprises, enterprise transformation provisions in Albanian 
legislation and general or exclusiv e funds available for State-owned enterprises.  A member requested 
a report on enterprises remaining in Government ha nds, the nature of goods they consumed, exported 
or distributed; and a report on plans, as appropriate, to complete the privatization process.  To ensure 
full transparency, Albania should keep WTO Member s informed about progress in privatization, and 
provide periodic reports on developm ents in privatization and economic reform issues as relevant to 
its obligations under the WTO.  21. In response the representative of Albania said th at the main objectives of privatization were: 
to provide a constant long-term economic development and the increase  of the economic efficiency, to 
increase market efficiency through promotion of co mpetition and further deregulation of this market, 
and to attract foreign private capital in the importa nt sectors of Albanian economy.  Article 7 of The 
Law “On Privatization Strategy of Primary Important Sectors”, stated that the privatisation of the strategic sectors would be accomplished with the par ticipation of strategic investors, to whom would 
be offered not less than 30 per cent of the shares.  The privatization process of all strategic sectors 
opened to foreign capital participa tion.  With reference to privatisation methods and formulas of 
strategic sectors, the representative of Albania said  that the strategic sectors of the economy would be 
transformed into commercial enterprises.  In the im plementation of the privatization, three kinds of 
rights were transferred to the private sector:  the ri ght of ownership, the right of exploitation and the 
right of development. The partial or total transf er of the ownership right was approved case by case by 
the Council of Ministers.  In determining the parts of  shares to be held by the State by the strategic 
investor or by the investors and the possible limit fo r the participation of the vouchers.  The parts of 
shares to be held by the State would be specific for different sectors.  The State would maintain 
certain control over the enterprise only regarding issu es related to public and st rategic interest and not 
for daily operation.  For partial or total transfer of the right for exploitati on and development method , 
Albania applied to management contracts, leasi ng, etc., as a pre condition transformation of State-
owned enterprises into commercial co mpanies.  The State would transfer the development right for  WT/ACC/SPEC/ALB/6 
 Page 17 
 
 
the exploitation of natural resources such as oil, gas, solid, minerals, hydro sources, etc.  In this 
method the mineral permission and concession contracts were applied, subject to resources that would 
offer specific forms and procedures. The privati zation process had three stages: first stage – a 
preparatory stage, second stage – a promotional stage,  third stage – a decision making period.  In this 
stage the People’s Assembly would take the decisions at the strategic level.  The Council of Ministers 
would approve the decisions resulting by the approve d laws and would adopt the final decision on the 
privatisation.  The Ministry of Public Economy an d Privatisation was the institution responsible for 
the economic policy of privatization and would d ecide on inclusion of objects or companies in 
privatisation programmes.  The National Privat isation Agency was the body responsible for 
implementation of the process of privatisation from the technical point of view.  The strategic sectors were:  banking, telecommunications, electro-energe tic sector, oil and gas, mining sector, transport and 
water supply for population.  The State part of the Albanian banking sector was composed of three 
main banks: Rural Commercial Bank (RCB), National Commercial Bank (NCB) and Saving 
Bank (SB).  The sector of telecommunications in cluded the activities of TELECOM State-owned 
enterprise, as well as of AMC Joint Stock Company.  The laws for this sector included:  the Law “On 
Telecommunication in the Republic of Albania” and the Law on “Regulatory Entity of 
Telecommunications”.  The electro-energetic sy stem was composed of three main elements 
(production, transmission, distribution) and was represented by the Albanian Energy Corporation 
AEC (KESH), a joint stock company.  “AlbPetrol” joint-stock company run the oil and gas activity.  
It included the research-extraction, processing-marketing and special service branches.  AlbPetrol had 
been restructured and reorganized in four companies, each of them with special status, optimizing the 
number of the employees.  Two main entities exerci sed their activity in the mining sector: Albkrom 
and Albaker corporate and there were some other mines such as coal, iron-nickel, nickel-silicate, 
bauxite, etc.  Their activity was in conformity w ith the Law on Mining.  In order to develop this 
sector, it was of a special interest to apply the form of transferring rights of exploitation and 
development rights, by using all possible forms to  attract foreign capitals, such as self-financing 
projects as well as other concessionaire forms.  Both, Albkrom and Albbaker companies were in the process of restructuring.  Only air transport, ports and railways were considered as strategic sectors within the transport sector. Albtransport and Air Traffic National Agency (ATNA) were the main 
players.  These enterprises were involved in the reconstruction project of Rinas Airport.  The 
privatisation process most probably would include th e transfer of exploitation rights or development 
rights.  There were 50 water enterprises exerting th eir activity in the sector of water supply of the 
Population.  According to the Strategy of Privati sation, a programme had been compiled for preparing 
the privatisation of strategic sectors, in agre ement with the World Bank and European Bank for 
Development and Reconstruction.  This agreemen t was supported financially by these institutions. 
There were five foreign trade State-owned enterp rises involved in the process of privatisation and 
transformation into commercial companies:  (i) En terprise of Agroeksport Tirane, (ii) Enterprise of WT/ACC/SPEC/ALB/6 
Page 18  
 
Industrialimpeks Tirane, (iii) Enterprise of Arteksportimport Tirane, (iv) Enterprise of 
Makinaipmpeks Tirane, (v) Enterprise of Albkoopi Tirane.  They were divided into two groups, 
according to the form of privatisation: enterprises in  the direct privatization,  Makinaimpeks Tirane, 
and Albkoop Tirane and enterprises that will be tr ansformed into commercial societies: Agroexport 
Tirane, Industrialimpeks Tirane , and Artexport Tira ne.   The legal framework of privatisation had 
been improved by Amendment No. 8237 of the Law “On Transformation of the State Owned 
Enterprises into Commercial Companies” and the Decision of the Government No. 192 dated 
20 March 1998 “On Estimation of the State Owned Pr operty to be Privatised and the Procedures of 
Selling”.  Some strategic enterprises of this sector re mained unprivatised, i.e. some of the enterprises 
of the water supply system, the enterprise of th e seeds and agriculture inputs, the scientific 
development institutions of the agriculture syst em.  In the framework of economic reform for 
transformation of a centralised economy into a free market economy, the privatisation procedure of 
State-owned enterprises in the agriculture field ha d proceeded through three stages. The total number 
of State enterprises covered by the Central Agency for Restructuring and Privatization had been 341 
and included about 70,000 objects to a total value of Leks 5 billion.  Only 300 objects had remained 
non privatised and it was foreseen that all of them wo uld be privatised within 1999.  According to the 
Law “On Privatisation of Commercial Enterprises Which Function in Non-Strategic Sectors” the 
privatisation of these enterprises would be made by auctions which will be organized by the National 
Agency of Privatisation or by tender open to fore igners.  The total number of the subjects with State-
owned capitals was 469.  They were divided acco rding to the type of entity as follows: State 
enterprise for sales of assets 255, State enterpri ses under the procedure of transformation 67, 
Companies with 100 per cent State capitals 29, Comp anies with State capital less than 100 per cent 
15, and Joint venture companies 103.  In 1998, the procedure of transformation and privatisation had 
started with 332 objects and up to now 194 objects we re privatised.   The procedures of privatization 
of State enterprises that represent 297 objects woul d continue during 1999.  Privatisation was an 
ongoing process and Albania would continue to provide ne w data in the future.  In response to further 
questions, the representative of Albania provided th e following tables detailing the current status of 
the privatization programme.  
  WT/ACC/SPEC/ALB/6 
 Page 19 
 
 
 
Table A.  State-Owned Enterprises, by Sector, 1991 and 1998* 
Number of Enterprises 
Left to be Privatized  
1991** 1998 Deadline for privatization 
or expected completion 
Service and trade 623 48 End of 1999 
Agriculture 365 93 End of 1999 
Food processing 292 41 Second half of 1999 
Construction and construction ma terials 247 31 Second half of 1999 
Transportation 142 56 After 2000 
Miscellaneous (pharmaceuticals, e ducation) 107 49 Second half of 1999 
Wood and paper 98 29 Second half of 1999 
Handicraft production 89 10 Second half of 1999 
Mechanic industry 85 31 Second half of 1999 
Textiles and clothing 60 23 Second half of 1999 
Tourism 44 1 Second half of 1999 
Typography 29 4 Second half of 1999 
Chemical and plastics industry 28 20 Second half of 1999 
Metallurgic industry 14 5 Second half of 1999 
Leather industry 12 4 Second half of 1999 
Oil and gas 69 4 End of 2000 
Mineral industry 66 17 First half of 1999 
Energy 64 4 End of 2000 
Telecommunications 2 2 End of 1999 
Total 2,436 472  
Notes: 
* Data are not available for a year-by-year presentation. ** The data in 1991 have been aggregated in such a manner that they are consistent with those from 
1998.  For example, the postal enterprise for e ach region was counted as a separate state-owned 
enterprise in 1991; however, for the purposes of pr ivatization, the postal enterprise has been 
converted into one in the 1998 data. 1. This table does not include enterpri ses owned by the Ministry of Defense. 
2. Some of the enterprises have been entirely rec onstructed and now belong to  the strategic sector. 
3. The privatization of the strategic sector s has not started yet and shall be performed. 
4. From the above tabled enterprises, about 40 ar e excluded from the process of privatization in 
compliance with the request for order, health and other social enterprises. 
 
 WT/ACC/SPEC/ALB/6 
Page 20  
 
 
 
Table B.  Production of Goods and Services by State-Owned Enterprises, by Industry 
 (Million Leke) 
 1992 1993 1994 1995 1996 1997 1998 
Production of Goods  14,852.9 21,268.2 20, 693.8 25,728.7 27,864.3 24,112.3 24,142.8
Oil: Albpetroli 5,402.2 7,933.8 9,154.6 11,093.6 9,873.5 9,611.0 10,886.9
Electricity: KESH 2,116.9 2,870.5 2,885.1 4,433.3 11,231.0 8,648.1 7,753.1
Mining: 3,452.6 4,662.6 4,286.1 6,888.6 4,599.7 3,663.1 3,293.4
    Chromium: 
Albchromium 1,578.3 2,377.3 2,547.2 4,761.7 3,286.6 3,434.1 2,854.5
    Copper: Albcopper 1,342.8 1,660.4 1,199.4 1,642.6 972.4 112.9 296.7
    Coal 531.5 624.9 539.5 484.3 340.7 116.1 142.2
Other industries 3,881.2 5,801.3 4,368.0 3,313.2 2,160.1 2,190.1 2,209.4
    Metallurgy 342.8 685.8 858.2 974.5 1,079.2 1,111.9 1,119.3
    Mechanics 513.2 811.5 837.0 587.0 82.6 66.3 80.5
    Polygraphs 164.9 345.9 321.9 298.3 57.0 77.7 184.9
    Chemicals, glass, 
porcelain, rubber 645.1 1,085.4 820.0 495.4 407.3 320.7 207.6
    Textiles and clothes 1,390.1 1,739.0 758.7 303.5 297.8 301.5 315.3
    Leather and shoes   350.6 85.5 225.5 300.5 290.4
    Wood and paper 
products 521.2 811.3 280.0 465.2 10.7 11.5 11.4
    Arts and crafts 303.9 322.4 141.6 103.8   
Production of Services 77.9 2,216.4 2,632.0 3,294.1 5,038.2 6,331.4 6,213.9
Postal enterprise 77.9 192.3 253.0 340.8 570.4 701.1 547.9
Telecommunications  2,024.1 2,379.0 2,953.3 4,192.8 4,932.3 4,661.1
Albanian Mobile 
(phone) Company     275.0 698.0 1,004.9
Gross Domestic Product 50697 125334 184393 229793 280998 341716 456766
 
 
Table C.  The Contribution to GDP by State-Owned Enterprises, by Industry 
 1992 1993 1994 1995 1996 1997 1998 
Contribution by Sector: Percentage Share of GDP 
Total Contribution in the 
Goods Sector 29.3 27.5 11.2 11.0 9.7 6.9 5.1
Oil: Albpetroli 10.7 6.3 5.0 4.8 3.5 2.8 2.4
Electricity: KESH 4.2 2.3 1.6 1.9 4.0 2.5 1.7
Total from mining 
industries: 6.8 3.7 2.3 3.0 1.6 1.1 0.7
      Chromium: 
Albchromium 3.1 1.9 1.4 2.1 1.2 1.0 0.6
      Copper: Albcopper 2.6 1.3 0.7 0.7 0.3 0.0 0.1
      Coal 1.0 0.5 0.3 0.2 0.1 0.0 0.0
Total of other industries 7.6 4.6 2.3 1.3 0.6 0.5 0.3
      Metallurgy 0.7 0.5 0.5 0.4 0.4 0.3 0.2
      Mechanics 1.0 0.6 0.5 0.3 0.0 0.0 0.0 WT/ACC/SPEC/ALB/6 
 Page 21 
 
 
Table C.  The Contribution to GDP by State-Owned Enterprises, by Industry 
 1992 1993 1994 1995 1996 1997 1998 
      Polygraphs 0.3 0.3 0.2 0.1 0.0 0.0 0.0
      Chemicals, glass, 
porcelain, rubber 1.3 0.9 0.4 0.2 0.1 0.1 0.0
      Textiles and clothes 2.7 1.4 0.4 0.1 0.1 0.1 0.1
      Leather and shoes       
      Wood and paper 
products 1.0 0.6 0.2 0.2 0.0 0.0 0.0
      Arts and crafts 0.6 0.3 0.1 0.0 - - -
Contribution of Selected 
Services 
Postal enterprise 0.2 0.2 0.l 0.1 0.2 0.2 0.1
Telecommunications - 1.6 1.3 1.3 1.5 1.4 1.0
Albanian Mobile (phone) Company     0.1 0.2 0.2
 
22. The representative of Albania confirmed her countr y's readiness to ensure the transparency of 
its ongoing privatization programme and to keep  WTO Members informed of its progress in the 
reform of its transformi ng economic and trade regime.  She stated  that her Government would provide 
annual reports to WTO Members on developments in  its programme of privatization as long as the 
privatization programme would be in existence along the lines of that provided to the Working Party.  
She also stated that her  Government would provi de annual reports on other issues related to its 
economic reforms as releva nt to its obligations under the WTO.  The Working Party took note of 
these commitments. 
 Pricing Policies 
 
23. Some members of the Working Party request ed information on the process of price 
liberalization in Albania and the extent of any re maining controls on prices for goods and services.  
Albania  was requested to provide a description of existing price controls;  list the products by HS 
tariff line with reference to the legal provisions und er which controls were applied; border charges 
that would increase import prices;  and the conditions under which the authority to control prices was to be exercised.  The representative of Albania said that price controls had been eliminated for goods.  
For pharmaceutical products (medicine), the governme nt set a reference price for each of the 278 
pharmaceutical products listed y the INN.  The refe rence price for each medicine was computed as 
follows:  reference price = the lowest CIF import pric e + a wholesale margin of 12% + a retail margin 
of 27%).  The reference price w as the price upon which reimbursement to the retailer was based.  The 
consumer paid a co-payment, which was a specified percentage of the reference price, and the State 
Health Care Insurance Institute paid the remainde r of the payment.  The reimbursement list and the 
lowest import price was published once a year (prior to  the end of the first quarter of the year) stating WT/ACC/SPEC/ALB/6 
Page 22  
 
the percentage of the reference price the consumer w as required to pay.  This list was disclosed to the 
consumer at all retail outlets.  The reference pric e and reimbursement scheme was based on the Law 
on "Health Insurance", Number 7870, dated 13.10. 1994.  For medicines which had a higher price 
relative to the reference price, the consumer wa s required to pay the additional expense over the 
reference price.  Retail prices of these medicines on the INN list were not directly affected.  The category of drugs which were subject to the reference price was as follows: acidum ascorbicum; 
acidum valproicum; aluminii hydroxydum; ami nophyllinum; amoxicillinum; ampicillinum; aqua 
bidestillata; atropini sulfas; beclometasonum ; betamethasonum; calcii folinas; captoprilum; 
carbamazepinum; chlorambusilum; chloramphe nicolum; chlorpromazinum; clonazepamum; 
desmopressinum; diazepamum; erythromycinum; fluphenazinum; furosemidum; gentalmuicinum; haloperidolum; hydrocortisonum; hydroxocobalaminum; ibuprofenum; indometacinum; insullinum; 
isoniazidum; isosorbidi dinitras; levodopum + benserazidum; levothyroxinum natricum; 
medroxyprogesteronum; melphalanum; metamizolum;  meoclopramidum; metronidazolum; morphini 
hydrochloridum; nystatinum ; papaverini; paraceta molum; phenobarbitalum; 
phenoxymethylpenicillinum; phytomenadionum; p ilocarpini hydrochloridum; prednisolonum; 
pyridoxinum; rifampicinum; salbutamolum; sulfam ethoxazolum + trimethoprimum; testosteronum; 
thiaminum; tetracyclinum; thioridazinum; timololu m; trihexyphenidylum; and verapamilum.  The co-
payment by the State on these drugs ranged from 38 per cent to 99 per cent of the cost of the drugs.  The representative of Albania provided the Working Pa rty with a complete listing of products subject 
to price controls, including, where appropria te, HS numbers, in document WT/ACC/ALB/25. 
 
24. Concerning price controls on the services sector, the representative of Albania also noted that 
electricity, water, and transport services were subject  to price controls.  Full details of the price 
controls applied were provided to the Working Pa rty in document WT/ACC/ALB/25.  The pricing of 
electrical power was controlled.  Rates were set according to different categories as follows:  (i) 
residential households, (ii) main sectors of the economy, (iii) other producer entities, (iv) services sector providers and (v) wholesale rate for state in stitutions.  The tariffs on drinkable water were 
applied by the water supply stations according to diff erent types of users of water.  The rates are set 
according to a similar scheme.  Public transportation rates were set for the following modes of internal 
transport: Railroad transportation:  Rail cargo rates ar e liberalized.  On bus transportation:  urban and 
inter-urban passengers rates were set by the government.  Other modes of transportation had 
liberalized rates.   
25. The representative of Albania confirmed that prices for goods and services in Albania, other 
than for the items listed in document WT/ACC/ALB/25 were not subject to any price control.  She 
confirmed that all price controls, would be applied in a WTO-consistent fashion, and take account of 
the interests of exporting WTO members as provided for in Article III:9 of the GATT 1994.  Albania  WT/ACC/SPEC/ALB/6 
 Page 23 
 
 
would publish the list of goods and services subject to  State controls any that are introduced or re-
introduced in the future in its Official Journal, in cluding any changes in the list provided of current 
requirements in place.  The Working Pa rty took note of these commitments. 
 
Competition Policy 
 26. Some members of the Working Party requested information on Albania's competition policy, 
including the agreements restricting competition a nd whether and in which form reorganisation plans 
provided for in Chapter III of Law No. 8017 "For Bankruptcy Procedures" involved, directly or 
indirectly, any financial support from the State.  In  response, the representative of Albania said that 
the reorganization plans provided for in Chapter III of the Law  for Bankruptcy Procedures did not 
involve any direct or indirect financial support from  the State.  Additional competition legislation was 
under preparation. 
 
FRAME WORK FOR WORKING AND ENFORCING POLICIES 
 
Power of the executive, legislative and judicial branches of government  
27. The representative of Albania said that accord ing to Law No. 8417, dated 21 October 1998 
“On the approval of the Constitution of the Re public of Albania” and Articles 121-123 of the 
"Constitution of Albania", the accession of Albania to the WTO would be ratified by a special law in 
the Albanian Parliament.  The Council of Mi nisters Decision No. 492 dated 29 July 1998 had 
approved the setting up of the Albanian Secretariat for Co-ordination of Relations with the WTO and 
the Albanian Negotiators Group, which was com posed of the members of all ministries and 
institutions related to WTO issues.  Based on the Law No. 8371 dated 9 July 1998 “On Concluding of 
International Treaties and Agreements”, all agreem ents accepted by the Government of Republic of 
Albania , were approved in principle by the Council of Ministers, and the authority on discussions and 
signing was the competence of the Prime Minister.  The Council of Ministers Decision No. 749, dated 27 November 1998, “Strategy on th e Third Round of Negotiations for the Accession of Albania to the 
WTO”, had approved the Albanian Offer on Goods a nd Services.  She further added that specific 
legislation required to fully implement WTO provisi ons was passed separately and would be in force 
by the time of accession.  The ratification of the special law would take place according to Articles 
121 and 122 of the Constitution, Chapter II "Inter national Agreement".  She further noted that 
ratification and denunciation of international agreem ents by the Republic of Albania was lawful if 
they have to do with (a) membership of the Republic of Albania in internationa l organizations (Article 
1212, 1/c) and (b) the undertaking of financial oblig ations by the Republic of Albania (Article 121, 
1/d).  According to Article 122 of the Constitu tion of Albania, Chapter II of "International WT/ACC/SPEC/ALB/6 
Page 24  
 
Agreements", in the event of conflict between an in ternational agreement that has been ratified by law 
and any domestic Albanian law, the international ag reement prevailed to the extent of the conflict 
(Article 122/2), (Article 122/3).  She noted that accordingly it would not be necessary to repeal 
conflicting laws and regulations to ensure  enforcement of the WTO Agreement.   
 
Division of authority between central and sub-central governments 
 28. In response to questions concerning the sub-centr al governments authority to enact measures 
covered by the WTO Agreements, and the authority of the Government to override decisions by sub-
central authorities that conflict with WTO provisions, the representative of Albania said that as part of 
the trading system, foreign trade policy was under the jurisdiction of the Ministry of Economic Co-
operation and Trade, as well as of  all related ministries.  Implementation was carried out by the 
relevant ministries and institutions of the public sect or in Albania.  The Albanian Secretariat for 
Relations Coordination with the WTO, was th e structure responsible for supervising the 
implementation of all commitments resulting from the accession of Albania in the WTO, and 
exercising the rights derived by such membership.  The members of the Albanian Negotiators Group 
were responsible for fulfilling, within the minist ries structure, the implementation of the accession 
obligations.  She further added that Albania's s ub-central authorities could not enact measures on 
issues subject to WTO Agreements, e.g., taxes, fees, and price controls applied to imports, investment 
requirements, subsidies or any other.  Sub-central authorities could also not enact measures on issues 
subject to WTO Agreements.   
 29. In response to further questions from memb ers of the Working Party concerning the 
administrative appeals process for customs and othe r issues covered by WTO provisions and the right 
of appeal to an independent tribunal, whether or not  judicial, by traders, the representative of Albania 
said that in Albania there were three levels of app eal within the judicial system.  The first level was 
composed of First Degree Courts,  which function in all districts of Albania.  These had relevant 
sections for different complaints (penal, civil, admi nistration, family section, etc.).  The second level, 
consists of the Appeals Court , with branches in 5 districts in Albania, having under their jurisdiction 
the relevant territory defined by the Law approved by Parliament. The third level, consisted of the 
appeal to the Supreme Court , with its centre in the capital of Al bania.  This Court was composed of 
three colleges:  Penal, Civil and Administrative, which are responsible for reviewing and analysing 
complaints by relevant areas.  The Constitutional C ourt was the Head of the judicial system, which 
guaranteed the primacy of Constitution of Republic of  Albania, and was the final interpreter of and 
was subject only to the Constitution.   WT/ACC/SPEC/ALB/6 
 Page 25 
 
 
30. In response to further questions the representative of Albania stated that the Customs Code of 
the Republic of Albania, Law Number 8449, dated 27.01.1999, Articles 19, 20 and  289, set out the 
process by which an aggrieved party could appeal a d ecision of the Customs.  If a trader did not agree 
with a customs administrative decision, he or she c ould appeal to the regional Chief of the Customs 
Office.  A subsequent appeal could be made within  10 days from the day of notification to the General 
Directorate of Customs.  The Director General was required to take a decision within 20 days from 
the date the appeal was received.  In the event th e Director General of Customs does not reply within 
this term, the request shall be presumed to have been accepted.  According to Article 289, which 
relates to verification of customs valuations, if th e Director General rejected the appeal, the trader 
could take the appeal to the courts, pursuant to  the procedures set out in the Civil Code of the 
Republic of Albania and the Code of Civil Proce dures.  The complaint against an administrative 
decision was made to the Administrative Division of th e Factual Court.  Parties had the right to appeal 
the administrative decision of the Factual Court to th e Appeals Court.  Such an appeal was required to 
be reviewed by the Administrative Division of the C ourt of Appeals.  Finally, a final appeal could be 
made to the High Court.  Its decision was final.  
 
31. Concerning appeals from other types of administra tive decision, a trader could appeal to the 
head of the administrative office.  If the appeal was unsuccessful, the trader could appeal to the 
General Director of the administrative body within the applicable Ministry. A third appeal at the 
administrative level could be made o the Appellate Committee.  In add ition, the trader could go to the 
Court system described in the preceding paragraph. 
 32. The representative of Albania confirmed that sub-central entities had no autonomous 
authority over issues of subsidies, taxation, tr ade policy or any other measures covered by WTO 
provisions.  She confirmed that the provisions of the WTO Agreement, including the Albanian 
Protocol, would be applied uniformly throughout the customs territory of Albania and other territories 
under its control, including regions engaging in bo rder trade or frontier tr affic, special economic 
zones, and other areas where special regimes for ta riffs, taxes and regulations are established.  She 
also stated that the central authorities would e liminate or nullify measures taken by sub-central 
authorities in Albania that were inconsistent with  WTO provisions from the date of accession.  She 
further stated that if the Government of Albani a was informed of a specific situation where WTO 
provisions were not being applied or where app lied in a non-uniform manner, central authorities 
would act to enforce WTO provisions without requiri ng affected parties to petition through the courts. 
The Working Party took no te of these commitments. WT/ACC/SPEC/ALB/6 
Page 26  
 
 
POLICIES AFFECTING TRADE IN GOODS Registration Requirements For Trading 
 
33. In response to questions the representative of Alba nia stated that there were no State-trading 
enterprises as defined by Article XVII of the GATT 1994, because previous monopoly on import and 
export activities enjoyed by certain enterprises had ended in 1991 with the passage of the Law on 
State Enterprises.  From 1991 all enterprises in Al bania had acquired the right to import and export 
freely in accordance with the principles of a ma rket-based economy.  Amendments to the Law on 
State Enterprises after 1991 had transformed the rema ining State enterprises into commercial or share-
holding companies for privatisation and asked whether,  all enterprises, public or private, had the right 
to import or export and to purchase and sell goods on the international market without respect to 
origin.  She further added that in accordance w ith Law No. 7638, "On Commercial Companies" dated 
19 November 1992 following registration with the Court of First Instance and the local Tax Office, all 
enterprises could engage in international trade.  The request for registration to the Court of First 
Instance had to be directed by the responsible offi cers of the corporation or partnership.  The law 
defined some general requirements such as the obligati on to declare and register the type and terms of 
company's activity, the official tr ade name, the headquarters, the object  of the company, the amount of 
basic assets, the date of  its statutes.  Different types of companies, had some additional requirements, 
such as information on the composition of the compan y, shareholdings, the articles of association and 
the names of directors etc..  The requests for registration had to be accompanied, in the case of 
Limited Liability Companies and Public Companies, with the certificate of the depositor of the funds, 
which result from the reimbursement of the basic part of the assets, or from signing shares for cash 
contributions.  In cases when an activity was subject  to an official authorization, a copy of this 
authorization would be necessary for registration.  Th e company was registered when its statutes were  
in accordance with the law and when all documen ts required by the law had been completed.  
Registration with the Tax Office granted natural or juridical subjects the right to engage in specific 
trading activities.  The law also provides that these  provisions were equally applied to Albanian and 
foreign persons establishing a branch or  a representative office in Albania. 
 
34. The representative of Albania confirmed that the former state foreign trade monopoly had 
been abolished and that no restrictions existed on the right of foreign and domestic individuals and 
enterprises to import and export goods within Albani a's customs territory, with the exception that the 
importation and exportation of goods under license coul d be undertaken only by registered firms, and 
with the exception of a requirement to register for the right to engage in a trading activity listed in 
document WT/ACC/ALB/35/Rev.1 - Memorandum  on Import Licensing and Prohibition on 
Importable Products.  The importati on or exportation of products covered by the requirement to  WT/ACC/SPEC/ALB/6 
 Page 27 
 
 
register for the right to engage in a trading activit y were subject only to requirements consistent with 
the WTO Agreement. The requirement to register for the right to engage in a trading activity did not 
restrict foreign participation as they applied equally to foreign and domestic businesses.  The 
requirement to register for the right to engage in a trading activity were administered for the purposes 
of filing with the authorities of the Tax Office.  
35. The criteria for the right to engage in a tradi ng activity are as follows: prior to applying for a 
license to import products requiring licensing, a person or  enterprise must be registered in the Court of 
first degree to become a natural or juridical subject, and then must be registered with the Tax Office.  The tax registration process registers the individual/ firm as having the right to engage in specific 
trading activity (i.e., import, export, transport, or other marketing activities).  They were published in 
the Official Journal.  The criteria for engaging in import and export trade in the restricted sectors were 
consistent with generally applicable restrictions  placed on trade in similarly domestically produced 
goods.  The availability to register for the right to engage in a trading activity was not restricted nor 
was the licensing applied to restrict imports, pr oduction, wholesale or retail trade in any product. 
 
36. The representative of Albania confirmed that from the date of accession Albania would 
ensure that its laws and regulations relating to trad e in goods and all fees, charges or taxes levied on 
such rights would be in full conformity with its WTO obligations, including Articles VIII:1XI:1 and 
III:2 and 4 of the GATT 1994 and that it would also implement such laws and regulations in full 
conformity with these obligations.  The Work ing Party took note of this commitment. 
 
Import Regulations 
Customs Tariff 
 
37. The representative of Albania presented an in itial offer for market access negotiations on 
goods in May 1997 and submitted a revised offer for market access negotiations on goods in January 
1999.  A number of members entered into mark et access negotiations with Albania.  The 
commitments agreed between Albania and members of the Working Party will be annexed to Part I of 
the Protocol of  Accession of Albania which is  reproduced in the Appendix to this Report. 
 
Customs Duties 
 
38. In response to questions concerning the current status of "special duties" and Albania's Law 
No. 8163 (7November 1996) exempting goods impor ted for investment from customs duties, the 
representative of Albania said that the Government of  Albania was committed to trade reform and to 
the maintenance of a liberal trade-regime.  The G overnment had passed the new structure of tariffs, WT/ACC/SPEC/ALB/6 
Page 28  
 
rationalising it, and offsetting fiscal measures.  The initial steps taken in  March 1999 involved a 
phased reduction in the average tariff rates ove r the medium term, through a combination of 
reductions in the level, number and dispersion of rates.  In order to achieve a simple and transparent 
tariff structure with relatively low maximum tari ffs rates reduced from 30 to 20 per cent, in 
March 1999, and to 15 per cent in 2001, and more uniform tariff rates.  Since 1 January 1998 all 
machinery and equipment imported as investments were not exempted from customs duties.  At 
present Albania had no other duties and charges.  There were no products on which Albania applied 
mixed duties or composites right.  The draft regula tions for the law on customs tariffs were still under 
preparation.   
Tariff Quotas  
 39. In response to questions from members of the Working Party the representative of Albania 
convirmed that Albania had no tariff quotas.  With the adoption of the Customs Code on 15 May 1999, all tariff exemptions were provided in Artic le 199 and explained in Article 477-560 of the 
Implementing Provisions of the Customs Code.  The Customs Code (Title VI, Chapter 1, Article 199, 
paragraphs 1, 2) outlined the conditions for all re lief from import duties.  Paragraph 3 of Article 199 
provided that relief from import duties could be perm itted if provided for in bilateral or multilateral 
agreements.   
40. The representative of Albania confirmed that from the date of accession Albania would ensure 
that its laws and regulations relating to the right to trade in goods and all fees, charges or taxes levied 
on such rights would be in full conformity with its  WTO obligations.  The Working Party took note of 
this commitment. 
 
Other duties and charges 
 
41. The representative of Albania confirmed that Albania levied no duties and charges on imports 
other than ordinary customs duties.   Any such charges applied to imports after accession would be in 
accordance with WTO provisions.  He further confir med that Albania would not list any other charges 
in its Goods Market Accession Schedule under Article II:1(b) of the GATT 1994, binding such 
charges at "zero". 
  WT/ACC/SPEC/ALB/6 
 Page 29 
 
 
Fees and Charges for Services Rendered 
 
42. In response to questions from members of the Working Party the representative of Albania 
provided members of the Working Party with the th e following table listed the range of services and 
activities, including fees for harbour use and consular services.    
The levels of harbour taxes in the Republic of Albania 
For each net ton 
of ships register Total for each ship  
The type of taxes 
Taxes in US Dollars 
1. Harbor taxes on ships 
A  For ships that load and unload general goods B  For ships that load and unload liquid goods C  For freighters RO/RO and passenger freighters D  For sportive ships, yachts 
- up to 30 TRN 
- from 31 up to 70 TRN  
0.4 0.6 
0.35 
  
    
15 
30 
2. Tax for the beacon 
- for ships up to 200 TRN - for ships from 201 up to 500 TRN - for ships above 501 TRN  
0.10  
 
20 50 
3. Tax on the formalities carried out by the health authorities, capiteniery and other authorities - for ships up to 200 TRN - for ships from 201 up to 500 TRN 
- for ships from 501 up to 2000 TRN 
- for ships from 2001 to 4000 TRN - for ships above 4001  
 
0.25 
100 
180 
210 300  
4. The ships that load water fo r export in places outside the harbor, pay harbor taxes total 300 US$ 
for each supply. 
5. Foreign ships pay the harbor taxes on hard cu rrency, whereas the juridical and natural persons 
registered in the Republic of Albania pay in hard  currency or Lek in the ratio with the income. 
6. Harbor taxes are paid at the first entrance of  any Albanian harbor, independent of whether the 
ship will go for other commercial transactions in other Albanian harbors during the same cruise. 
7. Taxes are not based on an ad valorem basis. 
 
 
       ⋅  The following table lists the taxes for cons ular services, including those charges by its 
consulates overseas..   WT/ACC/SPEC/ALB/6 
Page 30  
 
 
Taxes for Consular Services 
Type of consular service taxes Fee in $US or Leke 
 
1. Taxes for issuing of visas and other travel documents 
 a. For issuing travel passports b. For issuing travel passports for diplomatic purposes c. Extension of the passport term by diplomatic groups 
d. For entrance concession 
e. Entrance concession issued by diplomatic groups f. Visa for foreigners g. Entrance in the territory of the Republic of Albania 
    for foreigners who do not a visa  
2000 lek 
100 $US
30 $US 
200 lek 
30 $US 
Reciprocity 
Reciprocity
 
2. Taxes for issuing, verificati on and legalization of documents 
 a. Any type of certification issued by missions for Albanian citizens b. Any kind of certification issued by the missions for foreign citizens c. Any type of attestation issued by the missions for Albanian citizens 
d. Any type of attestation issued by missions for foreign citizens 
e. Verification of documents by missions f. Legalization of documents for Albanian citizens by the     Ministry of Foreign Affairs g. Legalization of documents by missions for Albanian citizens h. Legalization of documents for foreign citizens  
30 $US 
Reciprocity 
30 $US 
Reciprocity 
10 $US 
200 lek 
30 $US 
Reciprocity
 
3. Taxes for issuing and drafting of other notary acts and translation of 
documents by the missions  
a. Drafting of declarations, authorizations, wills, contracts,  
    guarantees and special proxies by missions b. Certification of duplicates and copies 
c. Translation of documents  
20 $US/page
20 $US/page
10 $US/page
 
Note: The term mission refers to diplomatic or c onsular missions outside the country.  The fee may 
be paid also in the local currency acco rding to the prevailing exchange rate. 
 
 
43. The representative of Albania stated that Alba nia levied no duties and charges on imports 
other than ordinary customs duties and charges for services rendered.   
 
44. The representative of Albania stated that any duties and charges other than ordinary customs 
duties and charges applied to imports after accessi on would be in accordance with the provisions of 
the WTO Agreement.  She further confirmed that Albania would not list any other charges in its 
Goods Market Access Schedule under Article II:1(b) or  GATT 1994, binding such charges at "zero".  
The representative of Albania confirmed that, from the date of accession, Albania would impose any fees or charges for services rendered related to impo rtation or exportation only  in conformity with 
Article VIII of the GATT 1994.  Information regard ing the application and level of any such fees,  WT/ACC/SPEC/ALB/6 
 Page 31 
 
 
revenues collected and their use, would be pr ovided to WTO Members upon request.  The Working 
Party took note of these commitments. 
 
Application of internal taxes on imports Excise tax  45. Some members of the Working Party refe rred to Law No. 7678 dated 3 March 1993 "On 
Excise Taxes in the Republic of Albania" revi sed by Law No. 8247 dated 2 October 1997 "On some 
changes to Law No. 7678" and to the new "Law on Excise Taxes".  They noted, however, that 
Albania's proposed excise tax amendments left di scriminatory rates in place for the following 
products:  tobacco and cigarettes, soft drinks, mi neral and carbonated water, alcoholic beverages and 
some petroleum by-products and that Albania had stat ed that it would equalise the level of excise tax 
on foreign and domestic goods.   They asked Albani a to submit a comprehensive report on the scope, 
level, and status of its current excise taxes, listi ng the products subject to these taxes by product and 
by HS number; to explain the method of excise tax calculation for each product; to explain the steps 
to bring the discriminatory excise taxes into conformity with GATT 1994 Article III prior to 
accession, and the time table Albania had for taking su ch measures.  They also  asked for information 
on Albania's plans to eliminate the tax level di fferences among various dis tilled alcoholic beverages 
and cigarettes in conformity with th e requirements of GATT 1994 Article III. 
 
46. In response the representative of Albania said th at Albania had eliminated the discrimination 
in excise tax rates between foreign and Albanian  products in January 1999, according the Law on 
“Excise Tax” No. 8348 dated 28 December 1998.  Sub-categories of excise taxes still existed; 
however, within the Government of Albania,  a professional commission with experts from the 
Ministry of Agriculture and the Ministry of Finance, was in the process of defining such 
subcategories.  Albania confirmed that there w as conformity with Article III of GATT 1994. The 
calculation of the excise tax based on the transactio n value plus customs duty was a simple way of 
calculation suggested by IMF, in order that the unification of excise taxes would not be accompanied 
by budgetary implications.  On the other hand, the calculation of excise tax for domestic products 
based on retail price without VAT and excise, was c onsidered as a relatively hard measure for those 
domestic industries, which were either degrading, or at the infant stage.   47. In response to further questions the representative of Albania stated that the new excise rates 
were implemented by the Law on "Excise Taxes" , Number 8437, dated 28.12.1998 (effective on 1 
January 1999 - made available to members of the Working Party).  Draft legislation entitled "Some 
Changes to the Law Number 8437, dated 28.12.1998"  had passed the Council of Ministers and was WT/ACC/SPEC/ALB/6 
Page 32  
 
before Parliament for its approval expected by th e end of June 1999.  The new rates proposed in the 
pending draft legislation were as follows:   
 
Albania's Proposed Excise Tax Rates at the Time of Accession 
Harmonized 
System Code Description of Item Rate of 
Excise (%) Tax per Unit 
Chapter 24 Tobacco and Manufactured Tobacco Substitutes  
24.03 Tobacco for consumption 60  
24.02 Cigarettes   11 lek/pack 
24.02.10.00 Cigars  2240 lek/kg 
Chapter 22 Beverages, Sprits and Vinegar 
22.03.00 Beer  50  
24.04 Wine 50  
 Wine with a value up to  300 lek/liter  50 lek/liter 
 Wine with a value more than 300 lek/liter  150 lek/liter 
22.08 Whiskeys, brandies, and similar di stilled alcohol, including Raki (grappa) 
 With a value up to 400 lek/liter  80 lek/liter 
 With a value more than 400 lek/liter  400 lek/liter 
22.09, 22.02 Non-alcoholic beverages 5  
22.01 Bottled natural mineral waters 5  
Chapter 9 Coffee, Tea, Mate, and Spices  
09.01 Coffee 20  
Chapter 27 Mineral Fuels, Mineral Oils  and Products of their Distillation 
27.10 Petroleum sub-products  
 Gasoline up to 89.9 octane 77  
 Gasoline more than 90.0 octane 90  
 Unleaded gasoline 90  
 Gasoil 50  
 Kerosene 80  
 Motor oil 50  
 Lubricating oils 50  
 Other oils 5  
 Other products such as bituminous oil, solvents, etc. 20  
 All other petroleum sub-products* 90  
Chapter 40 Rubber and Articles Thereof 
40.11 New pneumatic tires of rubber  
 Of a kind used on motor cars (including station 
wagons)  4000 lek/tire 
 Of a kind used on buses and trucks  3000 lek/tire 
 Other  2000 lek/tire 
Chapter 33 Essential Oils and Resinoids; Pe rfumery, Cosmetic or Toilet Preparation 
33.03.00.10 Perfumes 50   WT/ACC/SPEC/ALB/6 
 Page 33 
 
 
Albania's Proposed Excise Tax Rates at the Time of Accession 
Harmonized 
System Code Description of Item Rate of 
Excise (%) Tax per Unit 
33.03.00.90 Deodorants 50  
Notes:*Liquid gas for household use is exempt from excise taxes. 
 
48. The representative of Albania stated that thr ough the proposed changes in the law, Albania 
considered that it had taken into account WTO and GATT principles related to discrimination in the 
application of differential excise tax rates based on distinctions within the product groupings.  It was 
now evident that Albania has included Raki, its natio nal spirit, in the alcoholic beverage group and is 
listed as separate.  This was a technical improvement in the law.  For cigarettes, by including all types 
in one category, Albania has also complied with WTO and GATT 1994 principles.  Another draft law 
which has passed the Council of Ministers, "Chang es in the Law on Tariffs in the Republic of 
Albania", states that the applied tariff rate on tob acco is to change from 20% to 10% as a means to 
increase the volume of legal tobacco products.  
Value-added tax 
 
49. With reference to the Law No. 7928 on Value A dded Tax, some members noted that Article 
26 provides that the taxable value of imported goods include tariffs, taxes and duties payable upon 
importation, and asked Albania to provide informati on as to what was included in the taxable value of 
domestically produced goods in respect of value-adde d tax and to confirm that there was no difference 
of treatment.  In response, the representatives of Albania said that the Law on Value Added Tax was 
in compliance with GATT 1994 and the WTO Agreement.   According to Article 28 of the Law, there 
was no discrimination between imported and domestic goods and services. This Article was similar to 
Article 11:A(2.a), of Title VIII of Directive VI of  the European Communities, which was compatible 
with Article III of GATT 1994.  Based on the menti oned above laws and articles, Albania confirmed 
that there was no difference in the treatment of imports and domestic goods and services.     50. In response to further questions the representa tive of Albania stated that the VAT was the 
final tax applied to imports.  The VAT was now computed as follows: 
VAT on imports = [(good's value + customs ta riff)*(excise rate)] * % of the VAT. 
 She also confirmed that the value taxed by the VAT  of locally produced goods included the value of 
goods plus any other obligations such as taxes, tariff s, etc. (established by law) with the exception of 
the VAT, which was applied on the taxed value of the good.  WT/ACC/SPEC/ALB/6 
Page 34  
 
51. The representative of Albania stated that from the time of accession, Albania would apply all 
domestic taxes, including the VAT and excise taxes in strict compliance with Article III of the GATT 
1994.  The Working Party took note of this commitment. 
 
Quantitative Import Restrictions Including Prohibitions, Quotas and Licensing Systems 
 
52. Some members of the Working Party said that the list of prohibited imports of Albania made 
it clear that Albania operated an import licensing regime to address concerns related to threats from imports to plant, animal and human health and safety, even though Albania had stated that it had abolished all import licence requirements along with  quantitative restrictions.  These members asked 
Albania to indicate how the legislative regime for granting import permits and licences met the 
requirements of the WTO Agreement on Import Licensing, and Albania's plans for enacting 
provisions in law or regulation.  53. Some members of the Working Party noted that the Memorandum on Import Licensing and 
Prohibition on Importable Products described the licensing system and the procedures necessary to 
obtain a licence, together with Albania's justificati ons for the restrictions.  Some members noted the 
requirement that imported medicines and drugs mu st have an import license, and requested that 
Albania clarify whether these were automatic or non-automatic licences, the time-frame within which 
they must be granted, the criteria that the importe d medicines and drugs must meet to qualify for the 
licence, and whether Albania had a similar registration and licensing system in place for the sales of 
domestic production of similar articles.  Those member s also requested similar information in relation 
to the licensing regime for pesticides, seeds and seedli ngs, the conditions to be met in order for seeds 
to be imported, on what basis  importation  would not be allowed, why the European Communities 
had special treatment, the status  for varieties or iginating in Asia and North America, and for new 
varieties of seeds and seedlings.  In their view, th is process appeared to be inconsistent with GATT 
1994 Article I since it afforded preferential treatment for the importation of seeds and seedlings from the European Communities and discrimin ated against products from other origins.  It also appeared to 
be inconsistent with GATT 1994 Article XI by eff ectively imposing a ban on seeds and seedlings not 
listed in the catalogue.  In their view, this pro cess constituted a form of non-automatic licensing as 
described in Article 3 of the Agreement on Import Licensing Procedures.  Those members also requested that Albania establish a transparent licensing system that identified the products covered, 
the reasons for restrictions and the criteria for obtaining an import licence.  Lacking justification 
consistent with the requirements of the SPS Agre ement, such as conducting an appropriate risk 
assessment, demonstrating scientific evidence, an d ensuring that measures are applied in a non-
discriminatory manner,  Albania's restrictions or requirements on seeds and seedlings were not justified.  Albania was also ask ed whether the licensing procedures for imports and exports of live  WT/ACC/SPEC/ALB/6 
 Page 35 
 
 
animals and for imports of seeds and seedlings were statistical or restrictive and if there were any 
quantitative criteria; if  permission was denied how c ould applicants appeal the decision etc.  Finally, 
Albania was asked to provide an exhaustive list of  products that are submitted upon importation to 
quantitative restrictions, licensing or special authorisation requirements, or special technical requirements.  
54. In response the representative of Albania submitted a Memorandum on Restrictions and 
Prohibitions for Importable Products (WT/ACC/AL B/35/Rev.1) which listed the products requiring 
import licensing, together with the respective justif ications and the process to obtain licences.  These 
products included arms and ammun itions, explosives, nuclear materi als, waste, narcotic drugs, 
psychotropic substances, pharmaceuticals, seeds and seedlings, pesticides, fertilizers, live animals and 
products.  Some of the licences were automatic.  The tables therein also listed prohibitions on 
importable products, Albania's justification therefor e and the phase out period. The items concerned 
included dangerous waste, poisons, narcotic drugs, psychotropic subs tances, certain animal products, 
seeds and seedlings etc.  She reconfirmed that th ere were no quotas on imports of live animals, seeds 
and medicines/drugs and added that there were  no non-tariff measures other than those measures 
described in the Memorandum on import licensing and prohibitions on importable products.  55. The representative of Albania confirmed that, after accession, Albania would have recourse to 
quantitative import restrictions only in situations pe rmitted by the WTO Agreement, and in particular, 
from the date of accession, Albania would no t introduce, re-introduce or apply quantitative 
restrictions on imports, or other non-tariff measur es such as licensing, quotas, prohibitions, bans and 
other restrictions having equivalent effect that c ould not be justified under the provisions of the WTO 
Agreement.  If balance-of-payment measures were  ever necessary in the future, Albania would 
impose them in a manner consistent with the rele vant WTO provisions, including Article XII of the 
GATT 1994 and the Understanding on Balance-of-Payments Provisions of the GATT 1994.  The Working Party took note of these commitments.  
Customs Valuation 
 56. Some members of the Working Party asked Albania to give a status report on the efforts to 
bring the customs valuation regime into line w ith the WTO Agreement on the Implementation of 
Article VII of the GATT 1994, in particular, to list al l relevant legislation and regulations in place, to 
indicate when minimum import prices were fully abolished and replaced by use of the transaction 
value and the hierarchy of alternative valuation meth ods listed in the Agreement, and to confirm that 
the seven prohibited valuation methods provided for in  Article 7 of the Agreem ent had been abolished 
in Albania's customs valuation regime.  In respon se the representative of Albania said that according WT/ACC/SPEC/ALB/6 
Page 36  
 
to the Law on Customs Code of the Republic of  Albania, No.8449, dated 27 January 1999, the 
practice of minimum pricing had ceased.  In Chapte r 3, Article 33-40 customs valuation was defined 
in compliance with WTO procedures.  A copy of th e Customs Code had been submitted to the WTO.  
An earlier "Customs Procedures Code" had been repl aced by a Decision of the Council of Ministers, 
"Implementing Procedures of the Customs Code", No. 205, dated 13.04.1999.  A copy of the "Implementing Procedures of the Customs Code" w as made available to members of the Working 
Party.  
 57. The representative of Albania noted that the a ppeals process for customs valuation decisions 
apply to Articles 19 and 20 of the Customs Code.  If a trader did not agree with a customs administrative decision, the trader could appeal to the Chief of the Customs Office in the Field.  A 
subsequent appeal could then be made within 10 days from the day of notification to the General 
Directorate of Customs.  The Director General was required to take a decision within 20 days from 
the date the appeal was received.  In the event that the Director General of Customs failed to take a 
decision, the request was presumed to have been acce pted.  According to Article 289, if the Director 
General rejected the appeal, the trader could appeal  to the Courts, subject to the usual procedures are 
based on the relevant articles of the Civil Code of the Republic of Albania and the relevant articles of 
the Code of Civil Procedures described earlier in this Report.   58. The representative of Albania further noted that the provisions of the Agreement on the 
Customs Valuation had been fully enforced in Al bania from 15 May 1999 and were used to determine 
the value of imported goods when they cannot be de termined under Articles 34 or 35.  She added that 
Albania was committed applying the Interpretive Notes of the Customs Valuation Agreement in 
Annex 6 of the Implementing Provisions of the Custom s Code.  She noted also that provisions related 
to the determination of customs value of carrier  media for use in data processing equipment and 
bearing data or instructions were set out in Artic le 39 of the Customs Code and in Article 79 of the 
Implementing Provisions of the Customs Code, copies of which were also made available to members 
of the Working Party.   
59. The representative of Albania confirmed that, from the date of accession, Albania would 
apply fully the WTO provisions concerning customs va luation, including in addition to the Agreement 
on the Implementation of Article VII of the GATT 1994, the Interpretive Not es to that Agreement, 
and the provisions for the Valuation of Carri er Media Bearing Software for Data Processing 
Equipment.  In accordance with these latter provisi ons, only the cost of the carrier medium itself 
would be accounted for in the customs value (Deci sion 4.1).  She added that, as an international 
agreement, the provisions of the WTO Agreement on the Implementation of Article VII of the GATT  WT/ACC/SPEC/ALB/6 
 Page 37 
 
 
1994 would supersede domestic law upon accession.  The Working Party took note of these 
commitments. 
 Rules of Origin 
 
60. Some members of the Working Party requested in formation about the elaboration of rules of 
origin in Albania.  In response th e representative of Albania said that with regard to rules of origin, 
the Customs Code, Law no. 8449 of 27 January 1999,  Chapter 2, Article 29-32, described the 
procedures to define origin of imported and e xported products into and out of the Republic of 
Albania.  
61. The representative of Albania further added that  the Implementing Provisions of the Customs 
Code dealing with customs valuation (Articles 54 -81); rules of origin for non-preferential trade 
(Articles 44-46 and Annex 3) ; and rules of origin for preferentia l trade (Articles 47-53 and Annex 4) 
had been enacted and were made availabl e to members of the Working Party.  
 
62. The representative of Albania stated that Chap ter 2 of Title II of the Customs Code, as 
elaborated by the Implementing Provisions of that Code, established Albania's rules of origin, and she 
confirmed that from the date of accession Albania preferential and non-preferential rules of origin 
would comply fully with the WTO Agreement on Rules of Origin, and th at the requirements of 
Article 2(h) and Annex II, Paragra ph 3(d) of the Agreement, which require provision upon request of 
an assessment of the origin of the import and ou tline the terms under which it will be provided, would 
be established in Albania's legal framework prior to  accessions.  The Working Party took note of this 
commitment. 
 Pre-Shipment Inspection 
 
63. With reference to pre-shipment inspection,  some members of the Working Party asked 
Albania to describe what services were provided, whether or not mandatory, how the Government of 
Albania contracted these services a nd disciplined these activities, the co st structure for traders making 
use of any mandated PSI services and whether Albani a was prepared to take responsibility for the 
activities of the PSI enterprises that operated in its name and to ensure that they observed WTO 
provisions.  In response the representative of Alba nia said that according to the Law on Customs Code 
of the Republic of Albania, No. 8449, dated 27 Janua ry 1999, Parliament had added an article that 
created the possibility to have  such service, if necessary. 
 WT/ACC/SPEC/ALB/6 
Page 38  
 
64. The representative of Albania confirmed that if Al bania in the future engaged the services of a 
pre-shipment inspection service provider Albania would ensure that the requirements of the 
Agreement on Preshipment Inspection were implemented in full.  The Working Party took note of that 
commitment.    
Anti-Dumping, Countervailing Duties and Safeguards Regimes  
65. Some members of the Working Party asked for information on the status of Law No. 7609 
"On Customs Tariffs" which provided for special customs duties, anti-dumping duties and countervailing duties and asked Albania to provide  an update of the legislation on anti-dumping, 
countervailing duties and safeguards.  In response th e representative of Albania said that the Law on 
Anti-Dumping was before the Parliament and was exp ected to be approved by the end of March 1999.  
This Law had been prepared with technical assistan ce from the WTO Secretariat.  The Government of 
Albania was currently in the process of drafting le gislation for countervailing and safeguard duties, 
with technical assistance.  These laws would be in full conformity with the principles of the WTO 
 
66. The representative of Albania stated that Albania would not apply any anti-dumping, 
countervailing or safeguard measures except in conformity with the provisions of the WTO 
Agreements on the Implementation of Article VI, on Subsidies and Countervailing Measures, and on 
Safeguards.  The Working Party took note of these commitments. 
  Export Regulations 
 Customs tariff nomenclature, types of duties, etc. 
 
67. Some members of the Working Party asked whet her Albania had export taxes, requested the 
WTO justifications for maintaining export proh ibitions on wood and w ood products and on metal 
waste and scrap.  They asked Albania to confirm that there were quantitative export restrictions on 
firewood, unprocessed wood, sawed wood and beams;  waste and scrap precious metals; waste and 
scrap iron, steel, nickel, lead, zinc, tin and copp er, waste and scrap aluminium (except for waste 
aluminium packaging, such as alum inium cans for soft drinks which had been imported); and ingots 
and to give a WTO-compatible justification for the restrictions or to indicate how Albania intended to 
amend these measures to bring them into conformi ty with WTO provisions.  The representative of 
Albania said that Albania had no export taxes.  As  described in the Memorandum on Export Licensing 
and Prohibitions on Exportable Products (WT/A CC/ALB/34/Rev.1), the export prohibitions on wood 
and wood products were re lated to the implementation of the Law on Forestry and the establishment 
of the responsible institutions for the forestry's  administration, control and services.  The export  WT/ACC/SPEC/ALB/6 
 Page 39 
 
 
prohibitions on all kinds of metal waste and scrap  was aimed to prevent the exportation of these 
commodities before the privatization of all the indu strial enterprises was concluded.  Albania would 
eliminate export prohibitions at the time of accession.   The items subject to export licences were arms 
and ammunitions, explosives, pyrot echnic products, pyrophoric alloys, firearms, modern works of art 
etc.  The export prohibitions on raw hides, skin  and leather would be lifted in March 1999.  The 
export of processed and unprocessed wood had been fu lly liberalized.  For scrap of iron and steel, 
copper and copper articles and fish preparations, the export bans woul d be lifted at the end of 1999.  
The ban on the export of works of art and antiques would not be phased out in order to protect the 
cultural heritage and  in tegrity of the Republic. 
 68. The representative of Albania stated that th e few remaining quantita tive export prohibitions 
covered hides, skins and leather; and waste a nd scrap of iron, steel, and copper.  The export 
prohibition on preparation of fish products, crusta ceans, molluscs, etc. was due to the International 
Organization for Epizootics listing of Albania on c ountries with diseases from List A.  The ban was 
not a unilateral measure taken by the Government of  Albania.  The same explanation applies to the 
prohibition related to the residue and waste from pr epared animal food.  She further added that 
Albania confirms that export prohibitions on hid es, skins and unprocessed leather; and waste and 
scrap of iron, steel, and copper would  be  lifted by the end of September 1999.  
 69. The representative of Albania confirmed that  from the date of accession the following 
products would be subject to export licensing:  93.01 - 93.07 (arms and munitions, parts and 
accessories thereof); 36.01 - 36.06.90.90 (explosiv es, pyrotechic products, matches, pyrophoric 
alloys); 97.01 - 97.06 (modern works of arts).  The export licensing regime for the above-mentioned 
goods was in place for the following purposes, adhere nce to international commitments related to 
non-proliferation, mass destruction and production of  technologies thereof; to prevent trade of said 
products to hostile nations subjected to international bans; to protect the cultural integrity and heritage 
of the Republic.  Albania confirmed that at th e time of accession any remaining export control 
requirements in place would be fully consistent wi th WTO provisions, including those contained in 
Articles XI, XVII, XX and XXI of the GATT 1994. The representative of Albania stated that from the 
date of accession export restrictions  would only be imposed in conformity with the WTO Agreement.  
The Working party took note of these commitments. 
 WT/ACC/SPEC/ALB/6 
Page 40  
 
Export Subsidies 
 70. Some members of the Working Party asked Al bania to confirm that Albania had no export 
subsidies.  In response the representative of Albani a said that Albania did not maintain subsidies of 
any sort on industrial products or agricultural commodities.    
71. The representative of Albania stated that Albania did not maintain subsidies including export 
subsidies which met the definition of a prohibited s ubsidy, within the meaning of Article 3 of the 
Agreement on Subsidies and Countervailing Measures and that it would not introduce such prohibited 
subsidies in the future.  The Working Party took note of this commitment. 
 
Internal Policies Affecting Trade in Goods  
 Industrial policy, including subsidies  72. The representative of Albania informed members of the Working Party that Albania did not 
administer any subsidies prohibited by the WTO Agreement.    73. The representative of Albania confirmed th at any subsidy programmes provided by the 
Government after accession would be administered in line with the Agreement on Subsidies and 
Countervailing Measures and that all necessary in formation on notifiable programmes would be 
notified to the Committee on Subsid ies and Countervailing Measures in accordance with Article 25 of 
the Agreement upon entry into force of Albania' s Protocol of Accession.  The Working Party took 
note of these commitments.  
 
Technical Barriers to Trade, Sani tary and Phytosanitary Measures 
 
74. Some members of the Working Party asked Albania to provide an update on progress in 
implementing the TBT and SPS Agreements and a co mmitment that both Agreements would be fully 
implemented as from the date of Albania's accession to the WTO.  In response the representative of 
Albania said that the new Law on Standardisation ha d been passed by the Parliament, and would enter 
into force in March 1999.  In the new Law on St andardisation the definitions of standards and 
technical regulations were those given in annex 1 of the TBT Agreement "Terms and their Definitions 
for the Purpose of this Agreement".  All standa rds would be voluntary and technical regulations 
mandatory.  Standards would be a pplied to foreigners and local pr oducers in compliance with national 
treatment.  Technical regulations would be used to protect human, animal or plant life or health or 
environment without being more trade-distorting than necessary.    WT/ACC/SPEC/ALB/6 
 Page 41 
 
 
 
75. The work of the General Directory of Standard isation (GDS) would be based on the adoption 
of international (ISO) and regional (EN) standards.   In 1990, Albania had not adopted any foreign 
standards; in 1998 the Republic of Albania had adopted 52 ISO, 4 IEC, 147 EN, and 62 standards 
from other States.  The goal was to reduce the cr eation of national standards and to increase the 
adoption of international standards.  Accredita tion would be based on European standards series 
45,000.  For certification, however, foreign certifi cation bodies could carry out certification activities 
in Albania. The GDS was a full member in ISO and an  affiliate member in CEN.  In the future, the 
GDS would be a member of IEC and CENELEC.  In the preparation of standards, the emphasis was 
on product performance requirements rather than on d esign or descriptive requirements.  The process 
of preparation of standards was open, transparent and free from commercial influence.  
 
76. The representative of Albania noted that an Information Centre for Standards had been 
created in compliance with the TBT Agreement requirement of an enquiry point.  By an order of the Prime Minister of Albania, No. 36, dated 6 May. 1999, paragraph 7, the enquiry point for TBT and 
SPS was at the General Directorate for Standardization, addressed : Rr.”Mine Peza”, Nr.143/3, 
Tirana, Albania, Tel. + 355 42 47176, Tel. & Fax. + 355 42 26255, E-mail: dsc@icc.al.eu.org.  
Albania had notified the WTO Secretariat of this d ecision and provided all the relevant information.  
The Information & Sale Center of this Directorate would will act as the enquiry point.  This point was 
thus already operational.  
 
77. The representative of Albania added that the C ode of Good Practice for Preparation, Adoption 
and Application of Standards had been translated into Albanian and would be adopted.  The GDS was 
preparing the decree of the Albanian Government to  assure that all remaining activities would be in 
compliance with TBT Agreement.  She added that accreditation would be a separate activity in the 
future and this was linked with the starting of th e accreditation of certification bodies, in addition to 
testing laboratories.  For separating these activities Albania would need about two years, depending 
on  economic developments and  Al bania's situation.  Standardisation was a separate activity from 
certification.  The standards process was open and ever y natural or juridical subject could participate 
in the technical committee for standards, if interest ed.  Some foreign companies participated in the 
technical committee.  Draft standards were publis hed and the comments period was from three to six 
months.  Regarding certification, the market was ope n for other third party certification bodies.  The 
new Law on Standardisation only charged the nationa l standards body to carry out certification, but 
did not forbid other certification bodies from carryi ng out this activity in Albania.  The national 
standards body would become independent from th e Government when the economic operators in 
Albania were interested in supporting this body fi nancially.  The goal of Albania was to adopt as 
many international and European standards as possible and this process was well under way.  The WT/ACC/SPEC/ALB/6 
Page 42  
 
national standards would be used only for some local  products not subject to international trade.  
Having only voluntary standards, these would not create a technical barrier to trade.  In Albania, the 
technical regulations would be established only by the national authority.  Standards  would be issued 
by the national standards body in the fields of ISO/IEC or CEN/CENELEC and by the Albanian Office for Telecommunications Regulation in the field of ITU or ETSI.  
78. In response to requests for further updates on the progress towards compliance with the 
requirements of the Agreement on TBT, the represen tative of Albania stated that to ensure full 
compliance with the TBT Agreement, was prepari ng a separate decree of the government which in 
practice will adopt Articles  2, 5, 6, 8 and 9, of  the TBT Agreement.  Articles 3 and 7 were not 
included because in Albania the technical regulati on were prepared by ministries or central public 
institutions and not by the local administration.  Th is draft was distributed to different ministries and 
approval was expected at the end of July.  The d ecree, "Code of Good Practice for the Preparation, 
Adoption and Application of Standa rds" was approved by the Council of Ministers (No. 242, dated 
28.05.1999).  In practice it would endorse the code as  it is in the annex 3 of  TBT Agreement.  The 
decree, "Criteria and Competencies Related to St andardization, Certification and Accreditation",  
mainly dealt with the three activities covered by the General Directorate of Standardization. The draft 
was distributed to different ministries for comments and is expected to be approved  by the end of 
June.  The decree, "On Exchange of Informati on on Standards and Technical Regulations", was 
prepared in draft form. This draft covered Articles 10.1, 10.1.1, 10.1.2, 10.1.3. 10.1.4, 10.1.5, 10.1.6, 
10.4, 10.7, 10.8, 10.9. 10.11, of the TBT Agreement.  The draft was distributed to different ministries 
for comments and was expected to be approved by the end of June.  Each draft decrees was made 
available to WTO members.   
79. The representative of Albania stated that Al bania had provided for the "notification, 
publication, and other internal procedures", e.g., publication prior to enactment for public comment, 
that would implement the provisions of the TBT Ag reement.  Such provision was contained in the 
decree "On Exchange of Information on Standa rds and Technical Regulation".  Concerning the 
requirement that a decision to accept the results of conformity assessment  procedures be conducted 
by bodies in an exporting Member country; and relevant ministries will implement a non-
discriminatory and cost-based fee structure", Albania stated that those were included in the decree of 
government which will adopt the Articles 2, 5, 6, 8 and 9 of the TBT Agreement.  Regarding self-
declaration for regulated products Albania had includ ed it in the decree for Criteria and Competencies 
for Standardization, Certification a nd Accreditation, chapter II, point 9. 
  WT/ACC/SPEC/ALB/6 
 Page 43 
 
 
80. The representative of Albania confirmed that Albania would apply all obligations under the 
WTO Agreement on Technical Barriers to Trade from the date of accession without recourse to any 
transition period.  The Working Pa rty took note of this commitment. 
 
Sanitary and Phytosanitary Measures (SPS ) 
 
81. Some members of the Working Party asked Albania to outline how the provisions of the 
WTO Agreement on Sanitary and Phytosanitary Measu res were implemented in Albanian Law.  In 
response the representative of Albania said that Albania had supplemented the documentation on SPS, 
and had indicated that it was in compliance with  WTO principles in the Memorandum on Conformity 
with SPS (document WT/ACC/ALB/31/Rev.1) except w ith regard to the establishment of a single 
unit that would serve as a contact point, from which Albania would need about two years.  The 
Memorandum reviewed WTO compliance article by article as follows:  
 
Albanian Compliance Requirements under the WTO 
 
1.  Standstill: the introduction of new standards, animal 
health regulations and food safety regulations shall 
conform to SPS Agreement principles.  The current regulations include:  "The Law on State Sanitary Inspectorate", Number 7643, dated 2.12.1992  
1.  Generally agreed principle in 
WTO accession negotiations. 
 
2.  Article I, Section 1 and 6, of the Law on State 
Sanitary Inspectorate states that the Ministry of Health serves as the information point for the WHO and related international organizations.  The Directory of Veterinary Service and Plant Protection in the Ministry of Agriculture and Food serves as the information point 
for questions related to animal and plant inspection, 
control, etc.    By Order of the Prime Minister, Number 36, dated 06.05.1999, (Paragraph 7) it is officially established that Albania will have one inquiry point for information 
on standards and technical regulations to be in 
compliance with SPS and TBT.    Directorate for Standardization Rr. "Mine Peza", Nr. 143/3 Tirana, ALBANIA 
+ 355-42-47176 telephone 
+ 355-42-26255 fax dsc@icc.al.eu.org e-mail  
2.  Article 7 and Annex B.3 WT/ACC/SPEC/ALB/6 
Page 44  
 
Albanian Compliance Requirements under the WTO 
 
Commitment:  The Directorate of Standardization, with 
its authority and responsibility to operate a single unit 
inquiry point, commits Albania to having a fully operational single unit inquiry point at the time of accession.  
 
3.  Transparency: notification and access to 
documentation: 
 
(A) The Directorate of Standards is the authority responsible for making notifications to the WTO and ensuring transparency obligations are met on an ongoing basis, Order of the Prime Minister, Number 36, dated 06.05.1999, (as provided in Paragraph 7); 
 
(B) there is nothing in the law at this time requiring publication of proposed measures at an early stage for comment;   
3.  Articles 7 and Annex B, Also 
G/SPS/7 
 
 (A) Annex B.5.(b) and Annex B.10    
 
(B) Annex B.5(a)   
(C) there are no provisions in law or administrative 
procedure at this time requiring that copies of proposed 
measure be provided to WTO Members; and  (D) at this time there is no requirement in law or administrative procedure that specifies a reasonable period of time for comment from Members and the 
public, and establishment of a process to take 
comments into account without discrimination. 1(C) Annex B.5(c) 
 
  (D) Annex B.5(d) 
 
Commitment:  For points 3. (B), (C), and (D) Albania 
is committed to draft or am end legislation to be in 
conformity with SPS at the time of accession.  
 
4.  The Law on State Sanitary Inspectorate (Article I, 
Sections 5-8, and Article II) defines measures that 
apply only to protect human, animal an/or plant health.  
All inspectors (chemical and physical laboratories, toxicological, bacteriological) operate according to this law and inspections are based on scientific criteria.  
4.  Article 2.2 
 5. The Law on State Sanitary Inspectorate (Article I, 
Sections 5-8, and Article II) defines measures that apply only to protect human, animal an/or plant health.  
All inspectors (chemical and physical laboratories, 
toxicological, bacteriological) operate according to this law and inspections are based on scientific criteria.  
5.  Articles 2.2, 3.3 and 5.2 
  
 
6.  The Law on State Sanitary Inspectorate (Articles I-
III) provides for harmonization, i.e., will follow international standards, guidelines, and 
recommendations in establishing SPS measures.    
6.  Articles 3.1, 3.3 and 3.4 
  
  WT/ACC/SPEC/ALB/6 
 Page 45 
 
 
Albanian Compliance Requirements under the WTO  
7.  The State Sanitary Inspectorate (Articles I-II) 
provide for equivalence, i.e., recognizes different 
measures that achieve the same level of protection.  
7.   Article 4 
 
 
 
8.  The Law on State Sanitary Inspectorate (Articles I-
III) provides for risk assessment by developing scientific evidence and conducting risk assessments to ensure that measures are based on science and applied 
only to the extent necessary to protect human, animal, 
plant health.   
8.  Article 5.1, 5.2 and 5.3 
 
 
9.  The Law on State Sanitary Inspectorate (Article I) 
and the provides for consideration of regional conditions, i.e., measures that take into account the regional characteristics both of the areas from which products originate and the areas for which they are 
destined.  
9.  Article 6 and Annexes A.6 and 
A.7 
 
10. The Law on State Sanitary Inspectorate (Articles I-
II) provides for non-discrimination, i.e., measures do not arbitrarily or unjustifiably discriminate between different members or between domestic and foreign suppliers.  Sub-legal acts define how samples are taken, 
and the procedures of an examination and its duration.  
The practices are transparent for all subjects that are under control.  
10.  Article 2.3, and Annex C.1(a) 
and (d)    
 
11.  The Law on State Sanitary Inspectorate provides 
for the control, inspection and approval procedures, e.g., to ensure that pro cedures, including systems for 
approval of the use of additives or for establishing 
tolerances for contaminants in foods, beverages or 
feedstuffs comply with the Agreement.  
11.  Article 8 and Annex C 
 
82. In response to further questions the representati ve of Albania stated that the Ministry of 
Agriculture and Food and the Ministry of Hea lth are the authorities responsible for making 
notification and ensuring transparency obligations regarding SPS measures to the Directory of Standardization, and it is the Directory of Standa rdization which is the authority responsible to 
making the notifications to the WTO to ensure transp arency obligations are met on an ongoing basis.  
The address, phone and fax numbers, and e-mail addr ess were provided to members of the Working 
Party in a Memorandum on Compliance with the SPS, WT/ACC/ALB/31/Rev.1.  83. She further added that the Law on the "State Sanita ry Inspectorate" was either to be amended or 
another law will be drafted to ensure that publi cation of proposed measures at an early stage for 
comment was required, that copies of proposed me asures would be provided to WTO Members by the 
time of accession and that a reasonable period of time for comments from Members and the public, and the establishment of a process to take comments  into account without discrimination. Provision WT/ACC/SPEC/ALB/6 
Page 46  
 
that specifies that the law will satisfy the WTO re quirement for standstill.  Changes to the law would 
also be made so that Albania would be in co mpliance with the SPS Agreement at the time of 
accession.   
 84. The representative of Albania confirmed that Al bania's sanitary and phytosanitary standards 
system would be in compliance with WTO provisi ons under the Agreement on the Application of 
Sanitary and Phytosanitary Measures as of the da te of accession to the WTO.  The Working Party 
took note of that commitment.   
 
Trade-Related  Investment Measures  85. In response to questions concerning trade -related investment measures (TRIMs), the 
representative of Albania said that Albania did not maintain trade-related  investment measures (TRIMs).  The Albanian Investment Law, N0. 776 4 of 11 February 1993 was compatible with the 
national treatment requirements of the WTO.  She confirmed that there are no local content 
requirements imposed on foreign or domestic firms to purchase or use products of Albanian origin or 
from any Albanian source, nor did Albania require th at a firm's, foreign or domestic, purchases or use 
of imported products be limited to  an amount related to the volume or value of the local products it 
exports.  She noted that the commitments in the Memorandum on TRIMs (WT/ACC/ALB/30) apply 
in the case of Albanian firms as well.  She further added that Albania confirmed that there were no 
provisions that restricted imports, by foreign or Alba nian firms, to an amount related to the quantity or 
value of the product exported; that there were no export performance requirements of any sort for foreign or Albanian firms; and that there were no trade-balancing requirements in the Law, neither in 
its intention nor in practice, which apply in the case of a foreign or Albanian firm. 
 
86. The representative of Albania stated that Albania would not maintain any measures 
inconsistent with the TRIMs Agreement and woul d apply the TRIMs Agreement from the date of 
accession without recourse to any transition period.  The Working Party took note of this commitment. 
 State Trading Practices 
 
87. Some members of the Working Party asked Alba nia to list the major State Owned Enterprises 
and the products covered,  whethe r Albania considered that any of the enterprises should be notified 
under Article XVII of the GATT 1994, or Article VIII of GATS, if these enterprises were subject to any form of Government control, including directives  in relation to their operation, if these enterprises 
were free to purchase and sell goods on the interna tional markets and to acquire imports from any  WT/ACC/SPEC/ALB/6 
 Page 47 
 
 
origin, and whether the persons working for these enterprises were Government employees and to 
describe the role of agroexport in the trade and in ternal distribution of agricultural products in 
Albania.  Noting that important sectors of the Alba nian economy appeared to be dominated by sole 
enterprises, including: research with minerals – GJEOALBA corporation; chrome mining, processing 
and smelting – ALBKROM corpora tion; copper mining, smelting a nd production – ALBBAKER; and 
production of electric energy by hydro and thermal plants – the Albanian Electroenergetic 
Corporation (KESH), some members of the Working Pa rty asked Albania to provide the profile of the 
Albanian trading enterprise Arteksport-Import and similar profile reports for the following 
enterprises:  ALBPETROL, GJEOALBA, ALBKROM corporations, ALBBAKER and the Albanian Electroenergetic Corporation (KESH).  In their view these enterprises had an effective monopoly, 
granted by the licence, to dominate the level and di rection of imports and e xports of fuel and gas 
services.  Albania was requested to provide deta iled information on these enterprises in accordance 
with the requirements of the Questionnaire on State-trading.  88. In response the representative of Albania said that  Albania did not consider that any of the 
enterprises should be notified under Article XVII of  the GATT 1994 or Article VIII of GATS.  None 
of the enterprises listed were subject to any form of Government control, including directives in 
relation to their operation.  All the enterprises were  free to purchase and sell goods o the international 
markets and to acquire imports from any origin.  78  per cent of exports were generated by privately 
owned enterprises.  The persons working for th ese enterprises were considered Government 
employees only because the enterprises were State-ow ned.  Agroexport in the trade and internal 
distribution of agricultural products did not have any advantage or privileges over the State-trading 
enterprises.  The operations of Electro Energetic Corporation (KESH), ALBKROM, ALBBAKER, ALPETROL corporation were based on the La w on "Commercial Enterprises", No. 7638 dated 
19 November 1992, which provided th e same conditions and rules for public and private enterprises.  
Based on that Law, there were no exclusive rights for these enterprises.  Commercial enterprises were 
under the reconstruction process, and preparing to be pr ivatised very soon.  These enterprises were not 
operating under licence which could affect the export- import regime, except in respect of the items 
prescribed in the Memoranda on Import Licensi ng and Prohibitions on Importable Products and 
Export Licensing and Prohibitions on Exportable Products.   
 89. She further noted that in November 1998, with a joint action plan with the Ministry of Public 
Economy and Privatisation (MPEP), Albania had define d the schedule of actions  needed to accelerate 
the privatisation in the trade sector.  Only ten ente rprises and five branches of NSHPN in the districts 
remained under the supervision of the Ministry.  A ccording to the privatisation platform, they were 
subdivided into: Enterprises in direct privatisation,  which shall proceed according to the Decision of 
the Council of Ministers No. 195, dated 20 March 1996 "On the privatisation of enterprises that WT/ACC/SPEC/ALB/6 
Page 48  
 
cannot be transformed", this group included:  Du rres Trade Enterprise; Tirana Albcoop, Machinery-
impex in Tirana as well as the branches in Bulqi za, Fier, Kukes, Sarande and Tirana.  These 
enterprises had already interrupted their activity, underwent big damage and looting during the unrest 
of 1997, losses that could not be covered by them.  For the above-mentioned enterprises, the valuation 
of State owned property had conc luded and further privatisation procedures were being followed 
through MEPP.  Enterprises that would be tran sformed into commercial associations and later 
privatised were Agro-export, Industrial-Impex, Arte xport and the Fridge Unit No. 2 in Tirana and the 
Fridge unit in Durres.  These enterprises were in  a good economic and financia l condition.  The fridge 
unit in Durres and the fridge unit No. 2 in Tirana, ha d been registered as share holder companies.  The 
privatisation of these enterprises would start in J une 1999.  The enterprise of Albcontrol Durres would 
be transformed into shareholder company according to the Decision of the Council of Ministers No. 
78 dated 21 January 1999.  The Law on State Enterp rises of 17 July 1992 provided in Article 15 that 
the State does not guarantee the obligations of State enterprises towards third parties. 
 90. The representative of Albania confirmed that after accession to the WTO it will observe the 
provisions of Article XVII of the GATT 1994, the WTO Understanding on that Article, and Article 
VIII of the GATS regarding state trading, in particular abiding by the provisions for notification, non-discrimination, and the application of commercial co nsiderations for trade transactions for any firms 
covered by these provisions. 
 
91. The representative of Albania confirmed that  her Government would apply its laws and 
regulations governing the trading activities of St ate-owned enterprises and other enterprises with 
special or exclusive privileges as defined in Article XVII of the GATT 1994 and the Understanding 
on that Article and Article VIII of the GATS in conformity with the provisions of the WTO 
Agreement.  He further confirmed that Albania w ould notify any enterprise falling within the scope of 
Article XVII.  The Working Party took note of these commitments. 
 
Free Zones, Free Economic Zones  92. Some members of the Working Party noted Albania had a 1996 Government Decision 
providing for the establishment and organisation of  the National Entity for the Development of Free 
Zones, which would have direct dependence on the Government, requested a description of its 
provisions,  whether any free zones have been est ablished and asked Albania to explain what was 
meant by direct dependence from the Government, c ould foreign enterprises locate in the zones on the 
same basis as domestic enterprises, how would the operation of the free zones be administered, directly by the Government or through an exclus ive licence granted by the Government, and whether  WT/ACC/SPEC/ALB/6 
 Page 49 
 
 
there would be trade-related  investment measure s applicable to enterprises operating in the free 
zones.  In response the representative of Albania sai d that a new draft law and a draft regulation on 
"Free Zones" had been presented to the Council of Mi nisters for approval.  A copy of this draft law 
would be made available to the WTO.  Accordi ng to these drafts the Council of Ministers would 
decide from which institution would depend the National Agency for Free Zones.    
93. The representative of Albania stated that establishment of a free zone, the determination of its 
borders and the legalisation of activities to be pe rformed by the zone, could only be done by the 
Council of Ministers, following approval from the Head Council of the National Agency for Free Zones and the General Directory of Customs.  The selection of the companies was made according to 
the procedures defined in the Regulation of Free Zones based on measurable economic criteria:  
capital, time and rent.  Free zones could be estab lished in private or State sites and could be 
administered by a private or State operator, who would be granted a licence after application to the National Agency for Free Zones and the approval of the Council of the Ministers.  Free zones were 
not considered outside the customs territory.  All th e goods entering the zone from the internal market 
were not considered as exported goods and all th e goods going out from the zone to the internal 
market were not considered as imported goods.  A ll juridical or physical persons, domestic or 
foreigners, had equal possibilities to operate in a free zone, if they fulfilled the criteria defined in the 
application procedures specified in the draft regulati ons of the free zone.  Up to now Albania had not 
established any free zone, but there were feasibility studies for establishing two free zones. 
 
94. The representative of Albania stated that any free zones established within the territory of 
Albania would be fully subject to the coverage of  Albania's commitments taken in its Protocol of 
Accession to the WTO Agreement, and that Al bania would ensure enforcement of its WTO 
obligations in those zones.  In  addition, goods produced in these areas under tax and tariff provisions 
that exempt imports and imported inputs from tari ffs and certain taxes will be subject to normal 
customs formalities when entering the rest of Albania,  including the application of tariffs and taxes.  
The Working Party took no te of these commitments. 
 
Mixing regulations 
 
95. In response to questions from Working Part y members, the representative of Albania 
confirmed that it had no law or regulation requiring the use of domestic and imported goods in certain 
proportions or any other sort of mi xing regulations applied to imports. 
 
Government-mandated counter-trade and barter 
 WT/ACC/SPEC/ALB/6 
Page 50  
 
96. Some members of the Working Party asked  whether Albania maintained government-
mandated counter-trade or barter and, if barter  trade has permitted under Albanian Law, whether 
duties, taxes and other restrictions and requireme nts applied to imports a nd exports conducted as 
barter or counter-trade. In response, the representativ e of Albania stated that although Albania did not 
have any provisions in its Customs Code or an y other law regarding no n-mandated barter, it was 
permitted.  However, impor ts and exports conducted as barter or  countertrade could not benefit from 
exemptions of duties, taxes, and other restric tions and requirements that applied under the trade 
regime.    
Government Procurement 
 97. Some members of the Working Party asked for information on statistics on procurement, the 
overall value of public sector purchasing in Albania,  a breakdown of the public procurement market 
both by contracting entity and product type, whether a ll foreign suppliers received the same treatment 
as national suppliers when participating in tenders, if  there was an offset policy and, if so, how often 
were offset arrangements negotiated on a case-by -case basis, whether Albania's law made provision 
for a system of domestic and price preferences, if the procurement of certain products was reserved for local industry, if Albania had any trade agre ements with other count ries which covered public 
procurement, if so which countries.  Finally, they asked if Albania would intend to accept the Agreement on Government Procurement.  In respon se the representative of Albania referred to the 
laws, decisions and guidelines on government pr ocurement listed in document WT/ACC/ALB/41 and 
to the Memorandum on Compliance with the Agreement on Government Procurement (WT/ACC/ALB/42).  She said that the following documents would be approved by the Council of Ministers:  Law on Public Procurement; Manual of  Public Procurement; Document for the Tender for 
the Pre-qualification of Goods; Document for the Tender for the pre-qualification of Construction, 
Document for the Tender for the Procurement of Goods (Big and complex); Document of the Tender for the Procurement of Systems (Big and Complex) , Document for the tender for the Procurement of 
Construction (Big and Complex); Document for the Tender for the Procurement of Complex Services 
(Based on time periods and their total value), and Document for the Tender for the Procurement of 
Simple Services (Based on time periods and their total value).  The preparation of an amendment to 
the Public Procurement Law to provide the collection of procurement statistics was under 
consideration.  The overall valu e of public sector purchasing in Al bania for 1996 was about US$365,8 
million.  This amount represented about 13 per cent  of the GDP.  Currently the Government of 
Albania cold not provide a breakdown of the public procurement market.  This would be possible only 
when the law provided the collection of statistics on procurement.  According to Article 9 of the 
Public Procurement Law No. 7971 of 26 July 1995  no discrimination was allowed on the basis of 
nationality.  Procurement proceedings were open for all tenderers on equal terms, regardless of  WT/ACC/SPEC/ALB/6 
 Page 51 
 
 
nationality, type of ownership and juridical form.  National treatment meant that a foreign supplier, 
foreign products or services must be treated no l ess favourably than domestic suppliers and products.  
There was no offset policy or any other offset arrangements negotiated on a case-by-case basis.  
Albania's procurement law did not make provision for a system of domestic and price preferences, 
therefore there were no mandatory or optional pric e preferences.  The proc urement regime did not 
reserve certain products to local industry, conseque ntly there were no lists of products reserved for 
local industry.  Albania did not have any trade ag reements with other count ries which covered public 
procurement.  According to Article 43 of the Alba nian Public Procurement law, in case a tenderer was 
not satisfied with the decision by the procuring en tity, or the decision was not made within the time-
limit, the tenderer could challenge the decision a nd file a complaint with the Public Procurement 
Agency.  The Albanian Government would amend the existing law on public procurement to provide 
the right for further appeal.  Upon accession Albania would initiate negotiations to join the Agreement 
on Government Procurement by tabling an entity lis t and would intend to c onclude the negotiations 
within a year of that date.   
98. The representative of Albania confirmed that, upon accession to the WTO, Albania would 
initiate negotiations for membership in the Agre ement on Government Procurement by tabling an 
entity offer.  She also confirmed that if the results of the negotiations were satisfactory to the interest 
of Albania and the other members of the Agreem ent, Albania would complete negotiations for 
membership in the Agreement by 31 December 2000. The Working Party took note of these 
commitments. 
 
Agricultural Policies 
 99. Some members of the Working Party asked fo r clarification whether Albania would be 
seeking developing country status for the purpose of  agriculture subsidy commitments because this 
issue would need to be agreed multilaterally.  Wh ile recognising that Albania might have good policy 
reasons for the export prohibitions on firewood and other unprocessed wood, cattle hides, raw skins of 
sheep and lambs and other hides and skins, they no ted that export bans were  prohibited under Article 
XI of GATT 1994 unless justifiable under WTO provisions and asked Albania to find WTO-
consistent measures to achieve its policy goals.  No ting that Albania had not used agricultural export 
subsidies in the past they sought confirmation that  Albania would bind export subsidies at zero.  
Albania was asked to prepare tables on domestic sup port and export subsidies and to present data for a 
recent base period, normally the most recent three year s, for which complete and final data in the form 
of actual expenditures were available.  For each tabl e, data should cover each of the three years, not 
just the average.  Expenditures relating to fisheri es should not be included.  Expenditures relating to 
the upkeep of buildings and other administrative co sts, unless directly related to the provision of a WT/ACC/SPEC/ALB/6 
Page 52  
 
specific service, should also be omitted.  Expenditures to subsidise the cost of  inputs (such as water) 
were not allowed.  Although there were no expe nditures listed, Albania should be aware that 
Programmes funded by international projects did not  need to be included in the domestic support 
submission.  The support for flour for making br ead, which functioned as a price control on flour 
rather than as a market price support for grain produ cers, did not have to be included in the AMS.  If 
Albania set an applied administered price for wheat or other grains, or provided any other product-
specific subsidy, the support should be included in  the AMS.  Albania was also asked to provide 
information concerning the purchase and sale of grain.  100. In response the representative of Albania said that the Government was considering the 
developing country issue.  Albania had supplemente d the documentation on export licensing with HS  
codes, and had indicated that it would comply w ith WTO principles.  Albania would eliminate all 
export prohibitions at the time of accession.  Al bania would bind export subsidies for agricultural 
commodities at zero as indicated in the revisi ons to the Schedule of agriculture, (document 
WT/ACC/SPEC/ALB/4/Rev.1)  The figures in th e schedule on agriculture referred to actual 
expenditures.  Albania did not maintain subsidi es of any sort on agricultural commodities.  The 
revised schedule on agriculture had provided great er detail in the descriptions of the green box 
measures (including the 12 research institutions) and the data had been desegregated into the last three 
years.   The programmes related to fisheries ha d been excluded from the revised schedule.  The 
restoration of public buildings referred to the ci vil unrest of 1997 where Government buildings were 
looted and had suffered physical structural damage  requiring reparations.  Albania maintained buffer 
stocks of grain, but the volume of grain had b een decreasing steadily.  The volume kept under State 
reserves represented less than one percent of 1998 domestic consumption and the programme did not 
affect prices because the grain was sold at aucti on.  The quantity kept under State reserves was being 
reduced as a commitment taken in the framework of the Enhanced Structural Adjustment Facilities 
(ESAF) programme of the IMF.  Input subsidies ge nerally available to low income or resource-poor 
producers were made in each of the years 1996-98  and were included in the revised schedule on 
agriculture.  The programme was discontinued in 19 98 and no water subsidies were provided in 1999.  
No other input subsidies existed.  The computati ons of AMS data covered each year 1996-98.  Since 
the price ceiling for bread was removed in 1996, there was no support for agriculture and the AMS 
calculations were zero.  
Trade-Related  Intellectual Property Regime  
101. Some members of the Working Party requested details about legislati on and the enforcement 
of intellectual property rights protection in Albania and the compatibility with the requirements of the 
TRIPS Agreement.  Specific questions were addr essed regarding exceptions from national or MFN  WT/ACC/SPEC/ALB/6 
 Page 53 
 
 
treatment, right holders' exclusive rights, terms of protection, compulsory licenses, judicial review, 
copyright, trademarks, industrial designs, patents and competition.  In response,  the representative of 
Albania noted that Albanian borders were controlled by the central customs authorities of the 
Albanian State.  In Albania there was already an established system of border measures for the 
prohibition of counterfeit or pirated goods that infri nge and violate intellectual property rights.  The 
preparation and drafting of the legal basis for that system had been completed and was aimed at an 
effective guarantee of the enforcement of intellectua l property rights in Albania in compliance with 
the TRIPS Agreement.  102. The representative of Albania said that Albania was a member of the Convention Establishing 
the World Intellectual Property Organisation, the Paris Convention for the Protection of Industrial 
Property, the Berne Convention fo r the Protection of Literary and Artistic Works, the Madrid 
Agreement Concerning the International Registration of Marks, and the Patent Co-operation Treaty, 
the Extension Agreement between EPO and Albanian  Patent Office. Article 1 of Albania’s Law on 
Industrial Property identified the following as object s of the Law:  patents for inventions and utility 
models,  trademarks and service marks, industrial  designs, and appellations of origin.  In document 
WT/ACC/ALB/36 Albania submitted a detailed Me morandum on the Conformity of Albania's 
Intellectual Property Regime with the provisions of  the TRIPS Agreement. Albania accorded national 
treatment to the citizens of member countries of th e Paris Convention or to those citizens who have an 
industrial or commercial enterprise in a member country.  In the new draft law, there was an 
additional Article that determines th e above-mentioned treatment.  On a more general basis, this right 
was set forth in Articles No. 50 and 100 of the curre nt Law on Industrial Propert y.  The Albanian Law 
On Competition included a number of Articles that d eal with the regulation of competition (Articles 
24 -26) or with the prevention of illegal actions in  competition with the purpose of gaining advantages 
(Articles 37 - 42).  According to point 3 of Article  10bis of the Paris Convention, the Albanian Law 
on Competition foresaw the prevention of the actions that intend to create confusion (Articles 43 and 
27.1 and 27.3); the prevention of the false alle gations that intend to discredit the competitor 
(Articles 42,30.2 and 27.1) and the prevention of fa lse allegations that create a wrong image about the 
characteristics of the goods of the competitor (Articles 27.2, 5 and 6). 
 
103. The representative of Albania noted that the Law on "The Customs Code in the Republic of 
Albania", No. 8449, dated 27.01.1999, Article 82, Paragraph 4, gives the customs authorities the 
competence to intervene, upon request of an holder of an intellectual property right  for stopping the 
free circulation, export, re-export and place u nder suspension measures goods recognized as 
counterfeit or pirated.  The procedures of this inte rvention of customs authorities are established in the 
Decision of the Council of Ministers No. 205 dated 13.04.1999, entitled "The Implementing 
Provisions on Customs Code".  The first part of  this decision defined c ounterfeit and pirated goods WT/ACC/SPEC/ALB/6 
Page 54  
 
according to Article 82 of the Customs Code. Title  9 defined the procedures of action of customs 
authorities.  According to Point 119, the customs au thorities take action after an application in written 
form of the holder of the right, when the counterfeit or pirated goods were rele ased for free circulation 
under a transit procedure or a procedure with economic impact.  104. She further added that the application of the hol der of the right was required to be in written 
form and contain a sufficiently detailed description of the goods to enable the customs authorities to 
recognize them, the length of the period during which the customs officers are requested to take action and any other useful information to identify th e exporter and the importer. The application was 
required to be accompanied by proof that the app licant is holder of a trade mark, production license, 
copyright etc.  The customs author ities examined the application, and notified the applicant within 5 
days whether it would be accepted.  When the ap plication is accepted the decision of the General 
Directorate was notified promptly to all customs offices. This decision determines a period within 
which the customs authorities may intervene.  Th e decision may foresee that the applicant shall 
forward a down payment, subject to repayment of any excess amount, to cover any administrative 
charges occurred to the customs administration for ca rrying out the services. If the applicant did not 
agree with the given amount, the General Directorate was required to review it.  105. She further noted that point 120 of the Decision of the Council of Ministers No. 205 defined 
the control procedures for counterfeit and pirated goods according to the description of the rights’ 
holder.  When customs authorities proved that th e controlled goods correspond to the description of 
the applicant they suspended their release or seize the goods depending on the circumstances and 
visible proof.  They then had to notify the applicant immediately about the action taken.  In accordance with the legislation in force regardi ng the protection of professional, commercial and 
industrial secrecy, the customs authorities notified the holder of the right of the name and address of 
the declarant, and if known, the name of the c onsignee of the goods, with a view to allow the 
applicant to take legal action against the consignee.    106. If the applicant requests to in spect the suspended or seized goods, the custom authorities 
would allow him or her to do so.  After notifi cation of the decision of the General Customs 
Directorate for the suspension of seizure of the goods, the holder of the right had the right to appeal to 
the competent judicial bodies for damages and to require compensation, but he or she had to notify the customs authorities within 20 days.  If the holder of the rights does not notify the customs authorities 
in 20 days, the customs would suspend the decision  for the suspension or seizure of the goods, and 
release these goods.  If the charges of the applicant we re not proven, and damage has been incurred to 
the importer or any third party as a result of the in tervention of the customs authorities, the applicant  WT/ACC/SPEC/ALB/6 
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is responsible and must compensate for the damage .  The applicant must make a down payment for 
storing expenses of the goods. 
 
Substantive Standards of Protection Copyright and related rights  107. In response to questions concerning the admi nistrative formalities requirements for the 
enjoyment of copyright, whether free uses of comput er programs were restricted to back-up copies 
and decompilation, the preparation of legislation on layout designs of integrated circuits and on border 
enforcement, the representative of Albania said that the Albanian Law on Copyright foresaw no 
formal administrative requirements for the enjoyment of copyright. According to Article 51, point b, 
works were protected in Albani a in accordance with the international conventions where Albania 
participates.  The representative of Albania said that computer programs were included in the Albanian Copyright Law. Section 13 of this law defi nes the right of the lawful owner of a copy of a 
computer program, without the author's authorization to make a copy or an adoption of such a 
program, in cases where this adoption is indispensab le for the utilization of the computer program for 
the purposes of which the program has been lawfully obtained; and for archival purposes and if necessary for the replacement of the copy lawfully  obtained.  Section 14 defined the conditions in 
which authorization of the author will not be required.    
108. Albanian Copyright Law provided the protection to computer programs and data compilations 
required by Article 10(2) of the TRIPS Agreement and it fully complies with "whether in machine 
readable or other form".  Chapter III of the Albanian Copyright Law defined the exceptions and 
limitations of a copyright as well as related right s.  In accordance with section 6 of the law free 
reproduction for private purposes shall be permitted, without the author's authorization and without 
payment or remuneration, to reproduce a lawfully published work exclusively for the users' own private use (including use for scientific and research purposes).  This provision shall not be applied in 
respect of:  the reproduction of works of architecture in  the form of buildings or similar constructions;  
the reprographic reproduction of works of fine arts of restricted edition, of graphic presentation of 
musical works (sheet music) and of exercise books or other one-use publications;  the reproduction of 
computer programs except for cases mentioned in section 13 of the Albanian Law;  any other 
reproduction that would conflict with the normal exploitation of the work or would unreasonably 
prejudice the legitimate interests of the author.   
 
109. According to section 8 of the Albanian Copyri ght Law, the free use for teaching shall be 
permitted without the author's aut horization and without payment of remuneration, but subject to the 
obligation to indicate the source and the name of th e under specified conditions.  Section 9 defined the WT/ACC/SPEC/ALB/6 
Page 56  
 
rights and exceptions of the free reproduction by Libraries and Archives.  Section 10 of the Albanian 
Copyright Law dealt with the rights and exceptions of the free reproduction for legal and 
administrative purposes. It defines that such reproduction is permitted without the author's 
authorization and without remuneration to reproduce a work for court or administrative proceedings to 
the extent justified by the purpose.  Section 11 of this law also defines the rights and exceptions of the 
free use for information purposes.  Section 12 of the law defined the limitations of the free use of 
pictures of works permanently located in public plac es. According to this section it shall be permitted, 
without the author's authorization and without pa yment of remuneration, to reproduce broadcast or 
communicate to the public by cable a picture of a work of architecture, a work of fine art, a photographic work or a work of applied art that is  permanently in a public place (square, street, park, 
etc) except if the picture of the work is the main subject of such reproduction, broadcasting or 
communication and if it is used for commercial pur poses.  Albanian Law protected performers and 
producers of phonograms "retroactively" as required by the Article 14.6 of TRIPS Agreement in conjunction with Article 18 Berne Convention.  Sec tions 13 and 14 of the law define the limitations 
and exceptions for the free reproduction and adap tation as well as free decompilation of computer 
programs.  The provisions of this section may not be interpreted in such a way as to allow its 
application to be used in a manner which confli cts with a normal exploitation of the computer 
program or that unreasonably prejudices the legitimat e interests of its author.  Section 15 of the 
Albanian Law defines the free ephemeral recordi ng by a broadcasting organization, without the 
author's authorization and without payment of separ ate remuneration, to make an ephemeral recording 
by its own facilities and for use in its own broadcasts of a work which it has the right to broadcast.  
Section 16 of the law defined the limitations on the free public performance.   110. The Albanian Government had compared the Albanian Law on Copyright with the TRIPS 
Agreement and prepared a draft on the establishmen t of a package of customs measures to prevent 
counterfeited and pirated goods that infringe the ownership of intellectual rights in order to make the 
Albanian legislation compatible with Articles 51 to 60 of the TRIPS Agreement.  Article 82:4 of the 
new Customs Code provided that the customs author ities at the request of the holder of intellectual 
property rights must prevent goods known as counterfe ited or as pirated from free circulation, export 
and re-export as well as establishing a cancelling regime .  The procedures to exercise this right were 
determined in the implementation resolution of this code.  This procedure was in full compliance with 
the special provisions of the TRIPS Agreement on border measures.  The Government of Albania would adopt Dispositions of Applicability to the Cu stoms Code of the Republic of Albania in April 
1999.  The above-mentioned provisions were in fu ll compliance with Article 10:2 of the TRIPS 
Agreement, which covers computer  programs and databases.  Their protection would be in the same 
terms as the protection for artistic works in the Bern Convention.  Related legislation on border  WT/ACC/SPEC/ALB/6 
 Page 57 
 
 
enforcement was established in Artic les 119 and 120 of the Draft Dispositions of Application of the 
Customs Code. 
 Trademarks 
 
111. In response to questions concerning the regi stration of well-known trade marks and the 
protection of trade names, the representative of Albania said that Article 76 of the Law on the 
Industrial Property refused to register a trademark when it infringes the rights of a well-known trademark.  The definition of a well-known trad emark as such was done by the Office of Patents 
according to the information received by the co nsumer as well as information received by the 
International Bureau of the Registration of Trad emarks in Geneva, the Office of the Trademark 
Registration of the European Community in Alicante, Spain and homologue offices in Europe and 
elsewhere, with which the Albanian Office of Pate nts kept regular contacts.  In accordance with 
Article 8 of the Paris Convention, the Albanian Law on Industrial Property included no provision that 
obliges the registration or the depositing of a co mmercial name. Article 18 of the Law On the 
Provisions that regulate the first part of the Comme rcial Code sets forth that within one month from 
the day of the beginning of a commercial activity, the trader should announce his or her name and should deposit his or her original signature at th e court appointed to keep the commercial register. 
 112. With reference to the five years period before  allowing a mark to be cancelled for non-use, 
the representative of Albania said that when use was required to maintain a registration, the 
registration may be cancelled only af ter an uninterrupted period of non-use for at least three years, 
unless there was a valid reason to explain the inactivit y, such as the existence of some obstacle in 
production or marketing encountered by the owner of a registered item.  The legal use of a trademark 
by a third party would be recognized as use of the trademark for the purpose of maintaining the 
registration. The representative of Albania added that a sign shall not be protected as a mark, if its use 
as a mark would be in conflict with earlier rights.  Th e following, in particular shall be considered as 
earlier rights:  an identical or similar mark of a thir d party, in respect of identical or similar goods or 
services;  in respect of goods or services which are neither identical nor similar which have an earlier 
filing date or priority date, and wh ich have been registered or subse quently will be registered;  a well-
known mark of a third party within the meaning of Article 6 bis of the Paris Convention for the 
Protection of Industrial Property.  For the defin ition of a well-known mark, the information of the 
consumers about the mark will be taken into consideration.  The trademark registrar had the same 
responsibilities as the Patent Office.    WT/ACC/SPEC/ALB/6 
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Industrial Designs 
 
113. The representative of Albania said that the Albanian Law "On Industrial Property Rights" 
Part II, Article 59 gives the definition and conditi ons of protection for industrial designs, explaining 
that textile designs are included in this protection.  Articles 60-69 provide the right of protection, the 
procedures for registration, the temporary protection of industrial designs exhibited at international 
exhibitions, etc. 
 
Patents 
 
114. In response to questions concerning compulsory licences, Albania's implementation of the 
TRIPS rules on enforcement of intellectual property rights and whether inventions relating to plants 
and animals were excluded from patentability in Albani a.  The representative of Albania said that in 
order to be patentable, an invention shall be nove l, shall involve an inventive step and shall be 
industrially applicable.  The following, in particular , shall not be regarded as inventions within the 
meaning of paragraph (1):  discoveries, scientif ic theories and mathematical methods;  aesthetic 
creations;  schemes, rules and methods for perform ing mental acts, playing games or doing business, 
and programs for computers;  presenta tions of information.  A patent sh all not be granted in respect of 
an invention  of which the publication or exploitation   would be contrary to public order or morality.  
No patents shall be granted for substances obtaine d through internal nuclear transformations for 
military purposes.  No patents shall be granted for inventions of surgical, diagnostic or therapeutic 
methods practised on the human or animal body, as th ey shall be regarded as inventions which are not 
susceptible to industrial application. This provision sh all not apply to inventions  relating to substances 
and devices for use in any of these methods.  No patent s shall be granted in respect of plant or animal 
varieties or essentially biological processes for the pr oduction of plants or animals; this provision does 
not apply to microbiological processes or the products thereof.   115. The representative of Albania added that on th e request of any person who proves ability to 
work the patented invention in the Republic of Alba nia, made after the expiration of a period of four 
years from the filing date of the application for the patent or three years from the grant of the patent, 
whichever is later, the Patent Office may grant a non-exclusive, non-voluntary licence if the patented 
invention was not worked or was insufficiently work ed in the Republic of Albania. The grant of a 
non-voluntary licence shall be subject to the paymen t of equitable remuneration to the owner of the 
patent.  A non-voluntary licence shall not be gran ted if the Patent Office was convinced that 
circumstances exist to justify the non-working or insu fficient working of the patented invention in the 
Republic of Albania.  In deciding whether to grant a non-voluntary licence, the Patent Office shall give both the owner of the patent and the pers on requesting the non-voluntary licence an adequate  WT/ACC/SPEC/ALB/6 
 Page 59 
 
 
opportunity to present arguments.  Any non- voluntary licence shall be revoked when the 
circumstances which led to its gr anting cease to exist, taking into account the legitimate interests of 
the patent owner and of the licensee. The contin ued existence of these circumstances shall be 
reviewed upon request of the patent owner. The ne w Customs Code as well the regulations passed for 
its implementation, the Code of the Civil Procedure and the Penal Code, in separate Articles foresaw a strict defence of the interests of the owners of in tellectual property objects.  By law acts, including the 
measures that should be taken at the customs and th e enforcement of intellectual property rights, in 
accordance with the requirements of TRIPS, had been recently drafted and was expected to be 
approved by the Government in April 1999 (Articl es 119 and 120 of Draft Dispositions of Application 
of Customs Code).  The new varieties of plants and the new breeds of animals were excluded from the 
patentability, when their creation had to do with es sential biological processe s for their production.  
This was not valid for microbiological processes or their by products. 
 
Layout Designs of Integrated Circuits and Business Secrets 
 116. The representative of Albania said that the Albanian Government was preparing a law on 
layout-designs of integrated circuits based on Ar ticles 35-38 of the TRIPS Agreement.  The Patent 
Office would be responsible for these matters. Rega rding trade secrets, Article 49 of Law No. 8044, 
dated 7 December 1995, provided protection for bus iness secrets. According to this article the 
providing of business or operative secrets on the ac tivity of the competitors in illegal way or 
encouraging their employees in order to use or to sel l them was prohibited. It was forbidden, to give 
to others or to use business or operative secrets, knowledge which were provi ded during the relations 
of employment or other confidential relations, during the term of these relations in order to gain some 
advantages in the competition for oneself or for anot her third party or to da mage the owner of any 
commercial company. This obligation was valid for a period of two years after the termination of the 
employment or the confidential relation if the owne r of the business activity had a justified interest 
and if it did not lead to any unreasonable restric tion of the business or the professional activity of 
others.   
117. The representative of Albania that her Governme nt would apply fully th e provisions of the 
Agreement on Trade-related Aspects of Intellectua l Property Rights (TRIPS) by the date of its 
accession to the WTO without recourse to a transitional period.  The Working Party took note of this commitment. 
 WT/ACC/SPEC/ALB/6 
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Trade in Civil Aircraft 
 118. The representative of Albania stated that Alba nia committed that at the time of accession its 
imports on civil aircraft and parts will be zero.  Fu rthermore, Albania will be in conformity with the 
Agreement on Trade in Civil Aircraft and will be ready to sign the Agreement at the time of 
accession.  The Working Party took note of those commitments.   
 Policies Affecting Trade in Services 
 
119. The representative of Albania submitted Albania' s draft schedule of specific commitments in 
services (WT/ACC/SPEC/ALB/5/Rev.2). 
  TRANSPARENCY 
 Publications  120. The representative of Albania said that laws, reso lutions and decisions related to international 
trade only became effective after publication in the Official Gazette.  121. The representative of Albania said that, at the latest from the date of accession, all laws and 
regulations related to trade would be published in the Official Gaze tte "…" promptly and that no law 
or regulation related to internati onal trade would become effective prior to such publication.  He 
further stated that Albania would implement fully Article X of the GATT 1994 and the other 
transparency requirements in WTO Agreements requiring notification and publication. 
 
Notification  
122. The representative of Albania said that, at the lat est upon entry into force of the Protocol of 
Accession, Albania would submit all initial notifica tions required by any Agreement constituting part 
of the WTO Agreement.  Any regulations subsequent ly enacted by Albania which gave effect to the 
laws enacted to implement any Agreement cons tituting part of the WTO Agreement would also 
conform to the requirements of that Agreement.  The Working Party took note of these commitments. 
  WT/ACC/SPEC/ALB/6 
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TRADE AGREEMENTS 
 
123. The representative of Albania said that a bila teral trade agreement between Albania and 
Canada was in the process of being signed.  124. The representative of Albania stated that her Government would observe  the provisions of the 
WTO including Article XXIV of the GATT 1994 and Ar ticle V of the GATS in its trade agreements 
from the date of accession, and would ensure that  the provisions of these WTO Agreements for 
notification, consultation and other requirements co ncerning preferential trading systems, free trade 
areas and customs unions of which Albania became  a member would be met.  The Working Party 
took note of these commitments. 
 Conclusions 
 
[125. The Working Party took note of the explanations and statements of Albania concerning its 
foreign trade regime, as reflected in this report.   The Working Party took note of the commitments 
given by Albania in relation to certain specific ma tters which are reproduced in paragraphs [24, 25, 
32, 36, 40, 44, 51, 55, 59, 62, 64, 66, 69, 71, 73, 80, 84, 86, 91, 94, 98, 117, 118, 122, and 124] of this 
Report.  The Working Party took note that these co mmitments had been incorporated in paragraph 3 
of the Protocol of Accession of Albania to the WTO.   
 
126. Having carried out the examination of the forei gn trade regime of Albania and in the light of 
the explanations, commitments and concessions made  by the representative of Albania, the Working 
Party reached the conclusion that Albania be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this report, and 
takes note of Albania's Schedule of Con cessions and Commitments on Goods (document 
WT/ACC/SPEC/ALB/…/) and its Schedule of Sp ecific Commitments on Services (document 
WT/ACC/SPEC/ALB/…/) that are annexed to the Protocol.  It is proposed that these texts be adopted 
by the General Council when it adopts the Report.  When the Decision is adopted, the Protocol of 
Accession would be open for acceptance by Albania which would become a Member thirty days after it accepts the said Protocol.  The Working Party ag reed, therefore, that it had completed its work 
concerning the negotiations for the accession of Albani a to the Marrakesh Agreement Establishing the 
WTO.] 
 
[TO BE COMPLETED]WT/ACC/SPEC/ALB/6 
Page 62  
 
 
[APPENDIX 
 
ACCESSION OF ALBANIA 
 
Draft Decision
 
 
 The General Council,   Having regard
 to the results of the negotiations di rected towards the establishment of the 
terms of accession of the Republic of Albania to  the Marrakesh Agreement Establishing the World 
Trade Organization and having prepared a Protocol for the Accession of Albania,   Decides
, in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic of Al bania may accede to the Marrakesh Agreement 
Establishing the World Trade Organization on the terms set out in the said Protocol.]   WT/ACC/SPEC/ALB/6 
 Page 63 
 
 
 
PROTOCOL OF ACCESSION OF ALBANIA 
TO THE MARRAKESH AGREEMENT ESTABLISHING THE  
WORLD TRADE ORGANIZATION  
 
Draft  
  
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the 
approval of the General Council of the WTO accord ed under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereina fter referred to as "WTO Agreement"), and the 
Republic of Albania (hereinafter referred to as "Albania"),   
 Taking note
 of the Report of the Working Party on the Accession of Albania to the WTO in 
document WT/ACC/ALB/.... (hereinafter referred to as the "Working Party Report"),   Having regard
 to the results of the negotiations on the accession of Albania to the WTO, 
 
 Agree  as follows: 
 
Part I - General  
 
1. Upon entry into force of this Protocol, Al bania accedes to the WT O Agreement pursuant to 
Article XII of that Agreement and thereby becomes a Member of the WTO.  2. The WTO Agreement to which Albania acced es shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal inst ruments as may have entered into force before the 
date of entry into force of this Protocol.  This Protocol, which shall include the commitments referred 
to in paragraph [125] of the Working Party Report, shall be an integral part of the WTO Agreement. 
 3. Except as otherwise provided for in the para graphs referred to in paragraph [125] of the 
Working Party Report, those obligations in the Multilateral Trade Agreemen ts annexed to the WTO 
Agreement that are to be implemented over a period of  time starting with the entry into force of that 
Agreement shall be implemented by Albania as if it had accepted that Agreement on the date of its 
entry into force. 
 WT/ACC/SPEC/ALB/6 
Page 64  
 
4. Albania may maintain a measure inconsistent  with paragraph 1 of Article II of the GATS 
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to the GATS on Article II Exemptions. 
 
Part II - Schedules
 
 
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and 
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to 
as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement 
on Trade in Services (hereinafter referred to as  "GATS") relating to Albania.  The staging of 
concessions and commitments listed in the Schedu les shall be implemented as specified in the 
relevant parts of the respective Schedules. 
 6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date 
of that Agreement, the applicable date in resp ect of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
 
Part III - Final Provisions
 
 
7. This Protocol shall be open for acceptance, by signature or otherwise, by Albania until ….. 
 
8. This Protocol shall enter in to force on the thirtieth day following the day of its acceptance. 
 9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certifie d copy of this Protocol and a notification of 
acceptance thereto pursuant to paragraph 7 to each member of the WTO and Albania.  10. This Protocol shall be registered in acco rdance with the provisions of Article 102 of the 
Charter of the United Nations. 
 
 Done at Geneva this ... day of   .... one thousand nine hundred an d ninety nine, in a single copy 
in the English, French and Spanish languages eac h text being authentic, except that a Schedule 
annexed hereto may specify that it is authen tic in only one or more of these languages.  WT/ACC/SPEC/ALB/6 
 Page 65 
 
 
 
ANNEX 
 
SCHEDULE – REPUBLIC OF ALBANIA  
 
Part I - Goods 
 
[TO BE COMPLETED] 
  
Part II - Services 
 
[TO BE COMPLETED] 
 
 
__________ 
  