RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/807/26
10 July 2002
(02-3862)
Working Party on the Accession of the
Former Yugoslav Republic of MacedoniaOriginal:  English
ACCESSION OF THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA
Additional Questions and Replies
The Government of the Former Yugoslav Republic of Macedonia has submitted the following
replies to additional questions raised by Members.
_______________WT/ACC/807/26
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TABLE OF CONTENTS
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................1
Economic policies.............................................................................................................. .....................1
Main directions ................................................................................................................ ......................1
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................3
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................3
Trading rights (the right to import and export)................................................................................ ..3
Import Regulation.............................................................................................................. ....................4
- Other duties and charges...................................................................................................... ....4
Tariff quotas, ta riff exemptions............................................................................................... .............5
Fees and charges for services rendered......................................................................................... .......6
Application of domestic taxes .................................................................................................. .............7
Excise taxes................................................................................................................... ..........................7
Quantitative import restrictions, including prohibitions, quotas and licensing systems...............10
Customs valuation.............................................................................................................. ..................13
Rules of origin ................................................................................................................ ......................15
Anti-dumping, Countervailing duty and Safeguard Regimes..........................................................16
2. Export regulation............................................................................................................ ........16
Export financing, subsidy and promotion policies............................................................................16
3. Internal Policies, Affectin g Foreign Trade in Goods...........................................................17
Industrial Policies ............................................................................................................ ....................17
Technical regulations and standards ............................................................................................ .....17
Sanitary and phytosanitary measures............................................................................................ ....17
Trade-related investment  measures (TRIMs) ...................................................................................18
State trading practices........................................................................................................ .................19
Free economic zones ............................................................................................................ ................19
Government procurement practices............................................................................................... ....21
4. Policies affecting foreign tr ade in agricultu ral products.....................................................21
Internal policies.............................................................................................................. ......................21
5. Policies affecting foreign trade in oth er sectors ...................................................................21
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................22
Trademarks ..................................................................................................................... .....................25
Geographical Indications ....................................................................................................... .............26
Enforcement .................................................................................................................... .....................27
Notifica tions.................................................................................................................. ........................34WT/ACC/807/26
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VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................34
2. Economic integration: Customs unions and free trade agreements...................................34
ATTACHME NT 1 ................................................................................................................... ............36
ATTACHME NT 2 ................................................................................................................... ............41WT/ACC/807/26
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II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
Economic policies
Main directions
Question 1
Please clarify the meaning of “construction land” in the text of paragraph 23, which is identified
as being restricted from foreign ownership.
Answer
Construction land is defined by the Law on Cons truction Land (Official Gazette 53/01). According to
Article 3, paragraphs 1 and 2, construction land is the land, with or without any structure on it,
planned for construction under spatial and town-development plans. Built construction land is the
construction land on which a permanent structure has been built and the land serves the purposes of
regular use of such built structure.
Construction land may be owned by the Republic of Macedonia and by domestic legal entities and
natural persons (Article 6).  Ownership over construction land covers all of its space and everything
permanently related to it, and situated on or under its surface  (Article 7).
Under the Law on Construction Land, foreign natura l persons and legal entities have the following
rights over the construction land:
Concession
The Government may grant domestic and foreign natural persons or legal entities a
concession to construction land owned by the Republic of Macedonia to be used for activities
or to the benefit of the general welfare of the Republic of Macedonia (Article 14).
Concession is granted upon a  public tender.
Long-term lease
The lease may last for a maximum of 99 years (Article 19).  The right to a long-term lease of
a construction land is a right to someone else’s construction land entitling the right holders to
build their own facilities on or under the surface of the construction land, and obliging the
owner of the construction land to bear with it.  The holder of the right to a long-term lease ofconstruction land is the owner of the facility built on such construction land and usufruct of
the construction land which is the subject of such long-term lease right (Article 21 and 22).
The facility built under the long-term lease right is transferable and inheritable together with
the lease right  (Article 25, paragraph 3).  Upon expiration of the right to a long-term lease,
the facility built on the construction land for which the lease was granted shall pass into the
ownership of the owner of such construction land.  The right to a long-term lease of
construction land may be transferred or inherited (Article 25, paragraph 1).
The issues relating to foreign entities’ right to ownership of personal and real estate are
regulated with the Articles 243 to 252 of the Law on Ownership and Other Real Rights
(Official Gazette No. 18/2001). According to this  Law, foreign persons may not be entitled to
ownership over real estate such as constructi on land but may be entitled to long-term lease
under conditions of reciprocity, for the purposes of construction of business buildings andpremises and housing buildings and apartments, subject to approval by the Minister of Justice,WT/ACC/807/26
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following opinion obtained from the Minister of Urban Planning and Construction and the
Minister of Finance. Furthermore, this Law makes it possible for foreign natural persons to
acquire by inheritance right to ownership over real estate, under conditions of reciprocity.
The Regulations on the Manner and Procedure of Transfer and Lease of Construction Land
Owned by the Republic of Macedonia and on the amount of the special fees for suchprocedure (Official Gazette 79/2001) provides for the possibility for mixed ownership legal
entities to acquire right to ownership over construction land for the purposes of construction
of administration, business, industry and other commercial facilities, public sports and
recreation facilities and housing buildings and complexes. It must be noted that any mixed
ownership legal entity must be registered in the Republic of Macedonia.
Question 2
We support removal of the brackets in the commitment contained in paragraph 33. Does
Macedonia agree?
Answer
Yes.
Question 3
Do the price controls on natural gas and electric al energy given in Table 2(b) apply to sales to
firms as well as to households?
Answer
Price controls on natural gas and electrical energy apply to both firms and households.
Question 4
What are the current control levels for gas and electrical energy?
Answer
The current price for electrical energy used by households is 2.523 MKD/kWh. The price for firms
using 110 V is 1.2155 MKD/kWh.
The current price level for gas used by firms is 10.5MKD for one normal m3. Households in
Macedonia still do not use gas.
The average exchange rate of the National Bank of Macedonia for the period 24 May – 23 June 2002
was: 1 EURO = 60.9608 MKD.
Question 5
Is Table 2 of WT/ACC/SPEC/807/4 exhaustive? A re all products subject to price controls
covered?
Answer
Yes.WT/ACC/807/26
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Question 6
We suggest the addition of a reference to Article VIII of the GATS to the commitment language
in paragraph 40 and removal of the brackets. Does Macedonia agree?
40. The representative of FYROM stated that in the application of price controls
now or in the future, FYROM would appl y such measures in a WTO-consistent
fashion, and take account of the interests of exporting WTO members as
provided for in Article III.9 of the GATT 1994, and in Article VIII of the
General Agreement on Trade in Services (GATS). FYROM would publish the
list of goods and services subject to state controls and any that are introduced or
re-introduced in the future in its official gazette. The Working Party took note of
these commitments.
Answer
Yes.
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
Question 7
With regard to paragraph 53, we seek informatio n from Macedonia, for the SPS section of the
Working Party report, concerning the disposition of its review of “procedures for publication
and notification of sanitary and phytosanitary regulations” to “ensure full conformity with the
requirements of the SPS Agreement, Annex B, i.e. to allow a reasonable interval between the
publication of such regulations and their entry into force.”
Answer
The existing Macedonian legislation provides for obligatory publication of all laws and regulations,
including the ones dealing with sanitary and phytosanitary measures, in the Official Gazette and for a
reasonable period of time of minimum eight days between their date of publication and entry into
force. Macedonia intends to observe the publication and notification requirements contained in Annex
B of the SPS Agreement and it agrees this to be included in paragraph 53 of the report.
IV. POLICIES AFFECTING TRADE IN GOODS
Trading rights (the right to import and export)
Question 8
We seek removal of the brackets in the commitment contained in paragraph 61. Does
Macedonia agree?
Answer
Yes.WT/ACC/807/26
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Import Regulation
- Other duties and charges
Question 9
Are the "price premiums (P-prelevman)" in paragraph 64 and "variable levies (prelevman)"
described in paragraph 66, the same or two different measures?
Answer
Price premiums and variable levies are two different terms used for the same measure –
prelevman (P).  Prelevmans no longer apply.
Question 10
We take note of Macedonia’s request for a thr ee year transition to eliminate the 0.1 per cent
export promotion fee. We are prepared to cons ider this request but would want to see specific
language describing the scope of its application, i.e., confirmation in paragraph 66 of the text ofthe report that the fee is applied to all preferential and MFN imports and to exports to all
destinations.  We also seek specification of th e legislation containing the date of its repeal.
Answer
Macedonia confirms that the 0.1 per cent export promotion fee applies to both preferential and MFN
imports, as well as to exports to all destinations.
Article 25 of the new Law on Foreign Trade, enacted by the Parliament in June 2002 (Official Gazette
45/02) extends the application of Articles 57a, 57b and 57g, governing the 0.1 per cent fee, until 31
December 2005.
The Law on Foreign Trade (in draft) was submitted to the Working Party and circulated to members
under WT/ACC/807/24.
Question 11
We propose the following re-drafted commitment language for paragraph 67, and removal of
the brackets. Does Macedonia agree?
67. [The representative of FYROM confirmed that FYROM did not apply duties
and charges on imports other than ordi nary customs duties, with the exception
of the Export Promotion Fee of 0.1 percent which will be applied through 31
December 2005, as recorded in FYROM’s goods market access schedule.  Any
other such charges applied to imports after accession would be in accordance
with WTO provisions.  He further confirmed that FYROM would not list any
other charges in its goods schedule under Article II:1(b) of the GATT 1994,
binding such charges at 0.1 from the date of accession and at  "zero" from 1
January 2006.  The Working Party took note of this commitment.]
Answer
Macedonia supports the above commitment language.WT/ACC/807/26
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Tariff quotas, tariff exemptions
Question 12
Please confirm that Article 24a of the Customs Law, which establishes the authority to apply
tariff quotas on “goods that are not produced in  the Republic of Macedonia, or the production
of which does not cover the needs [of Macedonia]”  has been amended, as indicated in paragraph
70.  Please provide the text.
Answer
Article 24a of the Customs Law is currently being amended. Its new text has already been approved
by the Government. It is scheduled for enactment by the Parliament in July 2002.
The proposed new text of Article 24a was submitted to the Working Party. It reads:
“Article 24a
Favorable tariff treatment
The favorable tariff treatment from which certain goods may benefit shall be subject to
conditions and criteria laid down by the Government of the Republic of Macedonia upon
proposal by the Minister of Economy and prior opinion by the Minister of Finance and the
Minister of Agriculture, Forestry and Water Economy. Where an authorization for the
favorable tariff treatment is required, provisions set out in Article 79 and Article 80paragraphs 1 and 2 of this law shall apply.
For the purposes of paragraph 1, the expression “favorable tariff treatment” means a reduction
or suspension of an import duty as referred to in  Article 3 item 4 of this law, even within the
framework of a tariff quota.”
Question 13
Please clarify the relationship between the TR Qs administered for market access for imports
from preferential trading partners and TRQs und er Article 24a that are intended to open trade
in products only after domestic output has been consumed.
Answer
See the answer to Question 12 above.
Question 14
Please confirm that all TRQs agreed in market  access negotiations will be distributed on MFN
basis.
Answer
Macedonia confirms that all tariff rate quotas agreed in market access negotiations will be distributed
on MFN basis.
Question 15
Please describe the manner of allocation of  TRQs agreed in market access negotiations.WT/ACC/807/26
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Answer
Tariff rate quotas agreed in market access negotiations will be allocated on “first come, first served”
basis.
Fees and charges for services rendered
Question 16Can Macedonia confirm that the customs eviden ce fee is applied to all imports and exports?
Answer
Currently the fee for customs services rendered applies only to imports. However, the concept
of this fee is being changed as result of the Work ing Party comments with regard to its compatibility
with Article VIII of GATT 1994. Under the amende d regulation, the fee of 19 EURO will be charged
per declaration and its application will be extended to all customs procedures, without exemptions.
Changes to this end will definitely become effective prior to the accession.
Question 17
Please list the exemptions, if any, from the appl ication of the customs ev idence fee. They should
be explicitly noted in the report text.
Answer
See the answer to Question 16.
Question 18
Please explain the structure of the customs evidence fee, i.e. list of customs services rendered.
Answer
See the answer to Question 16.
Question 19
Since 7 February 2002, any truck that passes the border at the Blace border terminal is charged
with a fee of 100€.  We would like to know if this fee is additional to the fee of 19€ for imported
items and the justification, in terms of se rvices rendered, for the additional fee of 100€.
Answer
Due to its location, Blace is the most frequently used border crossing to Kosovo for commercial
shipments. The same facilities were also used by the NATO forces stationed in Kosovo for all logistic
purposes. To make the crossing more effective Macedonia recently opened an additional parallel by-
pass to be used only by the NATO forces. However,  trucks carrying commercial shipments also tend
to use the NATO by-pass. In order to avoid this, all trucks transiting through Macedonia are escorted
by the Macedonian authorities to the appropriate exit  at the Blace border crossing. The 100 EURO fee
is used to cover the expenses for the escort.
Trucks do not pay additional 19 EURO at the Blace border crossing.WT/ACC/807/26
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Question 20
We suggest the addition of a transparency commitment in paragraph 74 concerning customs
fees and removal of the brackets. Does Macedonia agree with the following text?
74. The representative of FYROM confirmed that from the date of accession
FYROM would impose fees and charges for services rendered related toimportation or exportation only in conformity with Article VIII of the GATT
1994.  Information regarding the application and level of any such fees, revenues
collected and their use would be provided to WTO members upon request. The
Working Party took note of these commitments.
Answer
Yes.
Application of domestic taxes
Excise taxes
Question 21
Please clarify the reasons for the different excise taxes applied to wines and sparkling wines and
other beverages covered by exactly the same HS import categories, as noted in Table 3(a). There
would appear to be discrimination in favor of some types of wines (grape?) over others.
Answer
The existing Law on Excise Taxes  (applied since 1 July 2001) provides for identical excise tax rates
for same imported and domestic alcohol beverages and it, therefore, does not discriminate on the basis
of their origin.
Question 22
Please give examples of the sorts of beverages taxed at the different rates and explain why, e.g.,
grape wines which are produced in Macedonia re ceive a lower excise rate than wines brewed
from other fruits.
Answer
See the answer to Question 23 below.
Question 23
Please clarify the nature of the beverages termed “semis” and explain why the excise tax on
these beverages is assessed at the same level as for distilled spirit beverages.
Answer
The classification and definitions on alcoholic beverages in the Macedonian Law on Excise Taxes are
based on the EU directives relating to these pr oducts (EWG.RL.92/83). Th ey are the following:WT/ACC/807/26
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Sparkling wines (Example: Champagne, Asti Spumante, etc.) – Article 35(2)
Includes all products under tariff numbers 2204 10, 2204 21 10, 2204 29 10 and 2205, if they:
- are bottled with cork strengthened  with special supporters or products under
dissolved carbon dioxide pressure of 3 bars or more; and
- have an alcohol content of at least 1.2 per cent vol. but not more than 15 per cent vol.
when the alcohol content of the finished product was obtained only by fermentation.
The excise rate on sparkling wines is 0 MKD/liter (Article 36(2)).
Wines (Example: white and other wines) – Article 35(3)
Includes all products under tariff numbers 2204 and 2205, with the exception of sparkling
wines, if they:
- have an alcohol content of at least 1.2 per cent vol. but not more than 15 per cent vol.
when the alcohol content of the finished product was obtained only by fermentation;or
- have an alcohol content of at least 15 per cent vol. but not more than 18 per cent vol.,
if not produced by enrichment and when the alcohol content of the finished product
was obtained only by fermentation.
The excise rate on wines is 0 MKD/liter (Article 36(3)).Other sparkling fermented drinks (Example: cider, perry and mead) – Article 35(4)(1)
Includes other sparkling fermented drinks under tariff numbers 2206 00 31 00 and 2206 00 39
00, as well as products under tariff numbers 2204 10, 2204 21 10, 2204 29 10 and 2205 not
designated as “sparkling wines”, if they:
- are bottled with a cork sustained by special supporters, or products under carbon
dioxide pressure of 3 bars or more; and
- have an alcohol content of at least 1.2 per cent vol. but not more than 13 per cent vol.,
or have an alcohol content of at least 13 per cent vol. but not more than 15 per cent
vol. and when the alcohol content of the finished product was obtained only by
fermentation.
The excise rate on other sparkling fermented drinks is 30 MKD/liter (Article 36(4)).
Other non-sparkling fermented drinks (Example: cider, perry and mead) – Article 35(4)(2)
Includes other sparkling non-fermented drinks under tariff numbers 2204 and 2205 not
included in the “wine” category, as well as products under tariff number 2206 with the
exception of “other sparkling fermented drinks” and “beer”:
- with an alcohol content of at least 1.2 per cent vol. but not more than 10 per cent vol.;
orWT/ACC/807/26
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- with an alcohol content of at least 10 per cent vol. but not more than 15 per cent vol.
and when the alcohol content of the finished product was obtained only by
fermentation.
The excise rate on other non-sparkling fermented drinks is 30 MKD/liter (Article 36(5)).
Semi products (Example: cider, perry, mead and other) – Article 35(5)
Includes all products under tariff numbers 2204, 2205 and 2206 with an alcohol content of at
least 1.2 per cent vol. but not more than 22 per cent vol. not falling under “sparkling wine”
and “wine” categories.
The excise rate on semi products is 300 MKD/liter of pure alcohol (Article 36(6)).
Ethyl alcohol (Example: cognac, whiskey, liqueurs, rum, spirit, mastika, gin, vodka, ouzo and
other) – Article 35(6)
Includes:- all products under tariff  numbers 2207 and 2208 with an alcohol content of more
than 1.2 per cent vol., even when they are part of  other products classified under
different chapters of the Customs Tariff;
- all products under tariff numbers 2204 and 2205 with and alcohol content exceeding
22 per cent vol.
- drinkable ethyl alcohol, regardless of whether it contains dissolved products or not.
The excise tax rate on ethyl alcohol is 300 MKD/lit er of pure alcohol measured at temperature
of 20
0C.
Question 24
Macedonia’s revised plan of legislative activiti es indicates that the Amendments to the Law on
Excise Taxes is slated for enactment in June 2002, and contains provisions to bring Macedonia’s
excise tax policies into line with WTO requirement s, in particular with Article III of the GATT.
Does this Law address the issues raised by the differential excise tax rates on alcoholic
beverages noted above?
Macedonia should eliminate the differences in excise tax application on brewed beverages no
later than upon accession.  We do not support a transition for this change.
Answer
See the answer to Question 23 above.
Question 25
Paragraph 77: WT/ACC/SPEC/807/4 states that “FYROM would equalize excise taxes on
cigarettes and other tobacco products by 2007 and 2005, respectively, in accordance with the
timetable presented in Table 3(b).” WT/ACC/SPEC/807/17 states that the Amendments to theWT/ACC/807/26
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Law on Excise Taxes, slated for enactment in June 2002, will equalize excise taxes for domestic
and imported tobacco products.
Paragraph 83: We are prepared to consider the request for a transition, but seek additional
information and assurances in the text of th e Working Party report that these arrangements
are, or will be, enacted in legislation and asks for the complete citation of the legislation.
We suggest the following amended text of paragraphs 77 and 83 and removal of the brackets:
77.     Excise tax rates were identical for imported and domestically produced goods,
except for tobacco products.  The domestic tobacco industry was fragile and
based on cultivation of a unique tobacco leaf, for which FYROM was struggling
to develop an export market.  Asked how FYROM intended to bring its excise
taxation regime into line with WTO requi rements, in particular with Article III
of the GATT 1994, he proposed that FYROM would equalize excise taxes oncigarettes and other tobacco products by 2007 and 2005, respectively, in
accordance with the timetable presented in Table 3(b).  Legislation gradually
equalizing the excise tax rates for imported and domestic tobacco products as
outlined in Table 3(b) was contained in  the Amendments to the Law on Excise
Taxes, enacted in June 2002.  By January 1, 2007, FYROM excise taxes ontobacco products would be in conformity  with WTO Agreements, as outlined in
Table 3(b).
83.     The representative of FYROM stated that, from the date of accession, FYROM
would[, with one exception,] apply its domestic taxes on products, including
those listed in [paragraphs 75 to 82 and Tables 3(a), 4(a) and 4(b)] in strictcompliance with Article III of the GATT 1994, in a non-discriminatory manner
to imports regardless of country of origin and to domestically-produced goods.
FYROM's excise taxes applied to imported and domestic tobacco products
would be equalized or otherwise brought into conformity with Article III of the
GATT in accordance with the timetable contained in Table 3(b) and theAmendments to the Law on Excise Taxes of June 2002.  By [date]
.  [The
Working Party took note of these commitments.]
Answer
The amendments to the Law on Excise Taxes (as submitted in draft to the Working Party) were
enacted by the Parliament and published in Official Gazette 45/02. Macedonia accepts the above
commitment language.
Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 26
Are the licensing requirements for TBT and SPS purposes applied to enforce technical
regulations or are granted automatically when standard documentation is supplied?
Answer
As explained in WT/ACC/807/18, about four hundred products, mainly electrical appliances, require
certification for import into Macedonia. The certification is granted automatically upon the
submission of standard documentation. The purpose of the requirement is to ensure the availability to
consumers of adequate safety and use information for the respective products. The documentationWT/ACC/807/26
Page 11
required to be submitted consists of the manufacturer's manual, a manufacturer's usual guarantee, and
a list of addresses for repairs.
Sanitary and phytosanitary requirements are based in their entirety on standards and procedures
developed  by the respective international organizations. Here too certification is issued upon the
presentation of the internationally recognized and prescribed documents. Only where suchdocumentation is not submitted, local testing may be required.
Question 27
How are TBT and SPS licensing requirements applied to similar domestic goods?
Answer
Domestic products are subject to the same sanitary, phytosanitary and safety requirements as imported
goods.
Question 28
There is no information in the draft Working Pa rty Report that relates the administration of
most of these licenses to any specific TBT or  SPS requirement, within the meaning of the WTO
Agreements.
Answer
Information about the administration of  certification procedures in compliance with the requirements
of the TBT and SPS Agreements appears in WT/ACC /807/18. An updated list of products requiring
certification and the issue of related conformity "licenses"  appears in Table 5(b) in
WT/ACC/SPEC/807/4/Rev.1.
Further legislation for development and administration of technical regulations in both TBT and SPS
areas is being prepared. The purpose of such legislation is to ensure further  harmonization ofMacedonian laws and practices with international requirements and the related streamlining  of
Macedonian procedures. Details of  the relevant legislation will be submitted immediately they
become available. Furthermore, Macedonia undertakes to submit all and any additional information
upon request. Macedonia intends to comply unequivocally with the requirements of the TBT and SPS
Agreements.
Question 29
We believe that this section of the report should be reviewed with a view to making explicit
which of the licenses are automatic and whic h are non-automatic, and their linkages with
specific SPS and TBT requirements.
Answer
The required information appears in Tables 5(b), 5(c), 5(d), 5(e), 5(f), 5(g) and 5(h) in
WT/ACC/SPEC/807/4/Rev.1.WT/ACC/807/26
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Question 30
There does not appear to be a list of products subject to TRQs in the context of allocating  tariff
rate quotas granted bilaterally under free trade agreements.  Please provide such a list for the
draft Working Party Report.
Answer
The required information appears in Attachment 1.
Question 31
Please describe how TRQs granted bilaterally under free trade agreements are administered.
Answer
In general, Macedonia applies two types of procedures for administration of TRQs under its free trade
agreements. TRQs agreed with Bulgaria and the European Union are allocated on the “first come, first
served” basis while the TRQs granted under FTAs with Yugoslavia, Croatia, Slovenia, Turkey andUkraine are allocated by a separate committee. Both procedures are briefly described below.
First come, first served – The Government prepares a decision announcing the TRQ quantities and the
documentation required. The decision is published in  the Official Gazette. Applications are submitted
to the Ministry of Economy which decides immedi ately upon their receipt. If the quantities required
within one day are higher than the quota quantity, the Ministry distributes the quota proportionally toall applicants.
Committee-based allocation - The volume of tariff quotas is determined on a yearly basis, but they are
allocated twice a year. The procedure and the documentation required, as well as the overall quota
amount for six months is spelled out in a government decision for each country and published in the
Official Gazette. Following the publication of the decision, the Ministry of Economy runs a publicinvitation in the daily newspapers. The period for submission of applications is seven days from the
day of publication of the invitation. Applications are filed with the Ministry of Economy. They are
reviewed by a committee consisting of two representatives from the Ministry of Economy, and one
representative from the Ministry of Agriculture, the Ministry of Finance and the Ministry of Foreign
Affairs.
Question 32
We offer the following text as a basis for further discussion and drafting. Does Macedonia
agree?
93. The representative of FYROM confirmed that, as provided for in the timetable
outlined in Table 5(a), no later than 31 December 2003, FYROM would
eliminate and would not introduce, re-introduce or apply quantitative
restrictions on imports, or other non-tariff measures such as licensing, quotas,bans, permits, prior authorization requirements, licensing requirements, and
other restrictions having equivalent effect, that cannot be justified under the
provisions of the WTO Agreement. He further confirmed that the legal
authority of the Government of FYROM to suspend imports and exports or to
apply licensing requirements that could be used to suspend, ban, or otherwiserestrict the quantity of trade will be applied from the date of accession in
conformity with the requirements of the WTO, in particular Articles XI, XII,WT/ACC/807/26
Page 13
XIII, XVIII , XIX, XX and XXI of the GATT 1994, and the Multilateral Trade
Agreements on Agriculture, Application of Sanitary and Phytosanitary
Measures, Import Licensing Procedures, Safeguards and Technical Barriers to
Trade.  The Working Party took note of these commitments.
Answer
Yes.
Customs valuation
Question 33
Please confirm in the text of the Working Party Report that the new regulations will supersede
the document entitled Regulation on the Rules and Procedures for Customs Valuation (Official
Gazette 17/2000).
Answer
The Regulation on Implementation of the Provisions of the Customs Code Concerning Valuation of
Goods for Customs Purposes, once published in the Official Gazette, will supersede the Regulation on
the Rules and Procedures for Customs Valuation (Official Gazette 17/2000).
Question 34
We note Macedonia’s offer in WT/ACC/807/23 to revise its compliance chart on customs
valuation in light of the new legislation, and we request that this be done as soon as possible.
Answer
The revised compliance chart appears in Attachment 2.
Question 35
Article 38e of the Macedonian Customs Code states that the Customs authority may reject the
declared value if it has reasonable doubt regardi ng the accuracy of that value.  The Code also
provides that an importer may receive a written explanation of how the Customs authority
determined the customs value of the merchandise after the authority has rejected the importer’s
declared value.
Decision 6.1 of the Customs Valuation Committee,  however, provides that a Customs authority
must give an importer advance notice that it is  contemplating rejecting the importer’s declared
value, along with an explanation, in writing if requested, of the grounds for doubting the
accuracy of the information supporting the importer’s declared value.
The authority must also provide the importer a reasonable opportunity to respond before
making a final determination regarding the appraisement of the merchandise.
We seek incorporation of these changes in Article 38e of Macedonia’s revised Customs Code.WT/ACC/807/26
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Answer
The content of the Decision 6.1 of the Customs Valuation Committee is fully incorporated into Article
28 of the Regulation on Implementation of the Provisions of the Customs Code Concerning Valuation
of Goods for Customs Purposes. This provision offers a detailed explanation of Article 38e of the
Customs Code. It is for this reason that it is included in the Regulation. The Regulation was circulatedto members under WT/ACC/807/24.
However, if the Working Party insists that this prov ision be incorporated in the text of the Customs
Law, Macedonia is willing to do so upon a timely notice.
Question 36
Article 12 of an earlier version of the Macedonia’s Customs Code provided a right of appeal of
customs valuation determinations.  The May 2002 text, however, does not contain any
provisions regarding the right to appeal.
Please indicate where these provisions are enacted in Macedonian law.
Answer
The right of appeal, as well as the right to appeal to a judicial authority in customs matters without
penalty are regulated by Article 15 of the Macedonian Constitution, Articles 223 and 224 of the Law
on General Administrative Procedure and Article 15 of the Customs Law. As Article 15 of the
Customs Law was not amended, its text is not included in the amendments circulated to members in
WT/ACC/807/24. It appears, however, in the Customs Law which was submitted to the WTO
Secretariat.
Question 37
We seek incorporation in Macedonia’s legislat ion the provision that importers may exercise
their right to appeal to a judicial auth ority in customs matters without penalty.
Answer
See the answer to Question 36 above.
Question 38
We note that Macedonia has implemented legal provisions to bring Articles 30, 31, 33 and 35 of
the Macedonian Customs Code into compliance  with the WTO Agreement.  We would like to
see this reflected in the text of the Working Party Report, e.g. in paragraph 96.
With these changes, enacted in law prior to finalization of Macedonia’s terms of accession, and
reflected in paragraphs 96 and 97  of the text of the Working Party report, we are prepared to
support the general commitment in this paragraph and the removal of the brackets.
We suggest the following elaboration of the current text. Does Macedonia agree?
96. The representative of FYROM said that as the Law on Customs already largely
ensured implementation of the WTO Customs Valuation Agreement, FYROM
intended to adhere to the Customs Valuation Agreement from the date of
accession to the WTO without recourse to  any transitional period.  FYROM wasWT/ACC/807/26
Page 15
amending its Customs Law to ensure full compliance with the Agreement on the
Implementation of Article VII of the GATT 1994.   Amendments to the Customs
Law and a revised Regulation on Implementation of the Provisions of the
Customs Code Concerning Valuation of Goods for Customs Purposes
superseded the provisions for customs valuation established in the Regulation onthe Rules and Procedures for Customs Valuation (Official Gazette 17/2000).  In
particular,  including
 both the Interpretative Notes of the Agreement and the
Decision of 24 September 1984 on the Valuation of Carrier Media Bearing
Software for Data Processing Equipment, were fully incorporated in the
Amendments to the Customs Law.  Article 38e of the Customs Code has been
amended to ensure that customs authorit ies will provide importers with advance
notice that rejection of the importer’s declared value is contemplated, and, if
requested, a written explanation of the grounds for doubting the accuracy of the
information supporting the importer’s declared value.  A reasonable
opportunity for response will also be given prior to making a final determination
regarding the appraisement of the merchandise.  The right of importers and
other interested parties to appeal customs rulings to the judicial authorities, and
without penalty, provided for in Article 12 of the previous Regulation, is now
implemented in Article XX of Law XX.  In addition, FYROM implemented legal
provisions to bring Articles 30, 31, 33 and 35 of the Law on Customs into
compliance with the “related party” provis ions of the Agreement.  He expected
this process to be completed by June 2002.
97. The representative of FYROM confirmed that, from the date of accession,
FYROM would apply fully the WTO provisions concerning customs valuation,
including the Agreement on the Implem entation of Article VII of the GATT
1994 and Annex I (Interpretative Note) and the provisions for the Valuation of
Carrier Media Bearing Software for Data Processing Equipment (Decision 4.1),providing that valuation of the software was based on the value of the media .
He stated that FYROM would not use any form of reference price or fixed
valuation schedule for the valuation of imports or to apply duties and taxes, and
that all methods of valuation used were in  strict conformity with those provided
for in the WTO Agreement on the Impl ementation of Article VII of the
GATT 1994.  The Working Party took note of these commitments.
Answer
Yes.
Rules of origin
Question 39
We seek removal of the brackets in the commitment in paragraph 101. Does Macedonia agree?
Answer
Yes.WT/ACC/807/26
Page 16
Anti-dumping, Countervailing duty and Safeguard Regimes
Question 40
We support the commitment in paragraph 108 and seek removal of the brackets. Does
Macedonia agree?
Answer
Yes.
2. Export regulation
Export financing, subsidy and promotion policies
Question 41
We appreciate the changes made in the law on Free Economic Zones, but Articles 15, 16, and 26
still contain provisions conditioning access to the tax exemptions and incentives to exporting.
Macedonia should address these is sues prior to accession, and provide the amended legislation
for Working Party review.
Answer
Articles 15, 16 and 26 refer only to the conditions spelled out in Articles 3 and 25. Export
performance requirement was one of such conditions. Since export performance requirement was
abolished in the recent amendment of Articles 3 and 25 (see Article 3, paragraph 1, item 2 and Article25, paragraph 1, item 1), there is no such condition anymore, and Articles 15, 16 and 26 comply with
WTO requirements.
Question 42
We support the commitment in paragraph 117.  Does Macedonia support removal of brackets?
Answer
Yes.
Question 43
Please explain whether the import duty drawback scheme operates in a manner consistent with
the provisions of Annex II of the WTO Agreement on Subsidies and Countervailing Measures.
Can Macedonia provide further details with regards to the verification process under the dutydrawback system?
Answer
The duty drawback scheme applies in customs procedures for goods imported for production aimed
for exports. It is regulated by Articles 97 – 107 of the Customs Law (Official Gazette 21/98, 26/98,
63/98, 86/00, 25/00, 109/00 and 31/0 1), Articles 43 –81 of the Regulation on the Determination of
Closer Criteria and the Manner of Conducting the Procedure with Economic Effect and the Instruction
No. 3 of the Customs Administration on the Cust oms Procedure on Imports Aimed for Exports with
the Duty Drawback Scheme (published in the Customs Administration Manuel of March 2000).WT/ACC/807/26
Page 17
The drawback request should be submitted by the person who carries out the production activity or
who made the arrangements for it. The drawback may be requested upon submission of evidence that
the imported products were used for the production of final products and if the imported product can
be recognized in the final product.
The drawback system is centralized and is administered by regional customs houses which have
special units that deal exclusively with drawbacks.  These units take special care that the value of the
import duty on inputs does not exceed the value rebated upon export of the finished product.  The
drawback is directly connected with the import declaration.  The exporter must present all export and
import declarations and documentation concerning the value of inputs.  After this, an inspection at the
producer’s premises by a drawback unit verifies the production and value of the imported inputs in the
finished products and issues an administrative decision. Drawback can be claimed only once for one
import declaration.
The Macedonia legislation establishes objective criteria for the application of the duty drawback
scheme, as well as mechanisms for additional verification. It, therefore, operates in a manner fully
consistent with the provisions of Annex II of the WTO Agreement on Subsidies and Countervailing
Measures.
3. Internal Policies, Affecting Foreign Trade in Goods
Industrial Policies
Question 44
We support the commitment in paragraph 120.  Does Macedonia agree with removal of
brackets?
Answer
Yes.
Technical regulations and standards
Question 45
We support the commitment in paragraph 129 to fully implement the WTO TBT Agreement
from the date of accession, and seek removal of the brackets. Does Macedonia agree?
Answer
Yes.
Sanitary and phytosanitary measures
Question 46
We are concerned that the existence of two, rath er than one, enquiry point in the SPS area may
cause delay and confusion.WT/ACC/807/26
Page 18
Answer
Following the Working Party recommendations, Macedonia has consolidated the two SPS enquiry
points, previously operating within the ministries of  health and agriculture, into one. The contact data
for the single enquiry point are:
Contact person: Dr. Vladimir Kendrovski
Address: Codex Alimentarius Office
Public Health Institute
50-ta Divizija 6, 1000 Skopje, Republic of Macedonia
Telephone: ++ 389 2 125-044 ext.290
Fax: ++ 389 2 223-354
E-mail: kendro@mt.net.mk
rzzz@freemail.com.mk
The above information has officially been circulated to members as document WT/ACC/807/25 of 10
June 2002.
Question 47
We would appreciate further information from  Macedonia on any additional legislation in
development designed to address sanitary and phytosanitary measures  within WTOrequirements.
Answer
Law on Safety of Foodstuffs and Other Products and Materials in Contact with Foodstuff (Law on
Food Safety) – scheduled for enactment by the Parliament in July 2002 (draft submitted to the
Working Party in WT/ACC/807/20).
Law on Veterinary Health – Intended to be amended by December 2002.
Law on Plant Protection – intended to be amended by December 2003.
Question 48
We seek a commitment to implement the SPS Agreement from the date of accession and a
description how Macedonia intends to accomplish this.
Answer
The existing Macedonian legislation follows intern ational requirements and applies international
standards and it is consistent with the SPS Agreement. Macedonia intends to maintain full compliance
with the SPS Agreement upon its accession to the WTO.
Trade-related investment measures (TRIMs)
Question 49
WT/ACC/SPEC/807/4 indicates that Macedonia states that it does not maintain any measures
contrary to the provisions of the Agreem ent on Trade-Related Investment Measures.WT/ACC/807/26
Page 19
To the extent that use of local content in production is a requirement for investment in
Macedonia’s Free Economic Zones, it would appear that trade related investment measures
may exist in Macedonia’s trade regime.
We seek reflection of that perspective and Ma cedonia’s response in the draft Working Party
Report, and a commitment along the following lines:
xx. The representative of FYROM said that his Government would not maintain
any measures inconsistent with the TRIMs Agreement and would apply the
TRIMs Agreement from the date of accession without recourse to any
transitional period.  The Working Party took note of this commitment
Answer
As indicated in the answer to Question 51 below, under the Law on Free Economic Zones, the
eligibility of companies for the benefits of locating in a free zone is not contingent on the use ofdomestic over imported goods.
Macedonia agrees with the above commitment.
State trading practices
Question 50
Does Macedonia agree to undertake a commitment to apply its laws and regulations governing
the trading activities of state-owned enterprises and other enterprises with special or exclusive
privileges in full conformity with the provisions of the WTO Agreement, in particular Article
VIII of the GATS, and to confirm that it will no tify any enterprise fall ing within the scope of
Article XVII?
Answer
Yes.
Free economic zones
Question 51
With regard to paragraph 140, it is noted that under the Macedonian Law on Free Economic
Zones, producers and users of the zones should “procure goods and services from localsuppliers and sub-suppliers whenever commercially justified”.
Is eligibility for the benefits of locating in a free zone contingent on the use of domestic over
imported goods? If so, please discuss why you believe this program to be consistent with the
Agreement on Subsidies and Countervailing Measures.
Answer
The provision in Article 3, paragraph 3 of the Law on Free Economic Zones is more of a
recommendation for the use of Macedonian products. It has no binding character and the use ofbenefits of locating in the zone is not contingent on it.WT/ACC/807/26
Page 20
Macedonia believes that the provisions of the Law on Free Economic Zones are consistent with the
Agreement on Subsidies and Countervailing Measur es and, for that matter, with all other WTO
requirements.
Question 52
Does Macedonia have plans to either phase ou t the program mentioned in Question 51 above or
make it consistent with the Agreement on Subsidies and Countervailing Measures? If so, please
explain what steps are being taken.
Answer
See the answer to Question 51 above.
Question 53
Can Macedonia explain when is it “commerciall y justified” (as referred to in Question 51
above) to use goods and services from local suppliers rather than from foreign suppliers?
Answer
See the answer to Question 51 above.
Question 54
The response to Question 61 of WT/ACC/807/23 states that the Macedonian Law on Free
Economic Zones had been amended to separate the right of establishment in the zone and accessto the tax exemptions and incentives provided from export performance requirements, but does
not refer the articles of the law that contain the specific provisions. We would like to see this
information included in the draft Working Party report.
Answer
Article 1 of the Law Amending the Law on Free Economic Zones (Official Gazette 6/02, circulated
among members by WT/ACC/807/22) repeals the general export performance requirement provided
in Article 3, paragraph 1, item 2 of the Law on Free Economic Zones.
Article 7 of the Law Amending th e Law on Free Economic Zones repeals Article 25, paragraph 1,
item 1 of the law which provided for specific percentages that users of the zone need to export in
order to use the benefits of locating in the zone.
Question 55
We seek a commitment for this section along the following lines:
xx.     The representative of FYROM confirmed that from the date of accession the
Government of FYROM would ensure enforcement of its WTO obligations in
those zones.  In this regard, he conf irmed that the Law on the Free Economic
Zones had been amended to eliminate any requirements for establishment in the
zones or receipt of benefits provided to firms within the zones conditioned on useof local goods or export performance.  In addition, goods produced in these
zones under tax and tariff provisions that exempt imports and imported inputs
from tariffs and certain taxes would be subject to normal customs formalitiesWT/ACC/807/26
Page 21
when entering the rest of FYROM, includi ng the application of tariffs and taxes.
The Working Party took note of these commitments.
Does Macedonia agree?
Answer
Yes.
Government procurement practices
Question 56
We believe that Macedonia should confirm that  it will join the Agreement on Government
Procurement, and that upon accession to the WTO, it will initiate negotiations for membership
in the Agreement on Government Procurement by  tabling an entity offer. We suggest the
following commitment language:
xx.    The representative of FYROM confirmed that, upon accession to the WTO, the
Government of FYROM would initiate negotiations for membership in the
Agreement on Government Procurement by tabling an entity offer.  He also
confirmed that, if the results of the negot iations were satisfactory to the interests
of FYROM and the other members of the Agreement, FYROM would complete
negotiations for membership in the Agre ement within two years of accession.
The Working Party took note of these commitments.
Answer
Macedonia supports the above commitment language and confirms that it will initiate negotiations for
membership in the Agreement on Government Procurement upon the accession to the WTO.
4. Policies affecting foreign trade in agricultural products
Internal policies
Question 57
We note that Macedonia has no export subsidie s, and we seek Macedonia’s commitment  that it
will not use such measures after the accession to the WTO.
Answer
Macedonia commits not to use export subsidies after the accession to the WTO.
5. Policies affecting foreign trade in other sectors
Question 58
Apart from the bilateral textile agreements with  the United States and the EU, does Macedonia
maintain similar arrangements with any other country?
Answer
No.WT/ACC/807/26
Page 22
Question 59
Prior to finalization of this negotiation, we must address the need to establish Macedonia’s
“base line” quantities for phasing out restrictions under these agreements in the context of the
gradual elimination of the Multifiber Arrangement (MFA).
When Macedonia becomes a WTO Member, the pr ovisions of the Agreement on Textiles and
Clothing will become relevant.  We intend that  our current bilateral quotas on imports from
Macedonia of textiles and clothing products would become the starting point for the further
liberalizations provided for under the terms of that Agreement.
In order to ensure an orderly transfer to this new status, and to guarantee the benefits of ATC
trade liberalization for Macedonia’s exports,  we suggest that commitment language be
developed for the draft Working Party Report that contains the following provisions:
xx.     The representative of FYROM confirmed that the quantitative restrictions on
imports maintained by WTO members on textiles and clothing products
originating in FYROM that were in force on the date prior to the date of
accession of FYROM to the WTO should be notified to the Textiles Monitoring
Body (TMB) by the Members maintaining such restrictions and would be
applied for the purposes of Article 2 of the Agreement on Textiles and Clothing.Thus, for the purposes of FYROM’s accession to the WTO, the phrase “day
prior to the date of entry into force of  the Agreement on Textiles and Clothing”
shall be deemed to refer to the day prior to the date of accession of FYROM to
the WTO.  To this base level the increase in growth rates provided for in Articles
2.14 of the Agreement on Textiles and Clothing shall be applied, as appropriate,in the Agreement on Textiles and Clothing from the date of FYROM’s accession.
The Working Party took note of this commitment.
Answer
Macedonia agrees with the above commitment.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
Question 60
What is the status of the Macedonian new Law on Industrial Property?
Answer
The new Law on Industrial Property was enacted by the Parliament in June 2002. The final text of the
law takes into account comments of the Members of the Working Party and introduces improvements
in that regard. English translation will be submitted to the Working Party as soon as available.
Question 61
Concerning the provisions of Article 7 of th e draft Law on Industrial Property concerning
submission of an application for recognition of industrial property rights in the Macedonian
language and Cyrillic alphabet:
Given the time required to locate a Macedonian skilled in translating IPR technical and legal
documents and verifying the translation once done , we suggest incorporation of a longer periodWT/ACC/807/26
Page 23
for submission in Macedonian – at least two months, to avoid de facto discrimination against
nationals of other WTO countries.
Answer
Article 12 of the Law on Industrial Property provides for 90 days period for submission in
Macedonian.
Question 62
Concerning the provisions of Article 12 of the draft Law on Industrial Property concerning the
timely payment of fees for recognition of industrial property rights:
We seek addition of some provision permitting the filing of a fee after the deadline has expired
on a showing of good cause for the unavoidable delay and a payment of a late fee.  Applicants
and right owners should not have to suffer additional loss if natural or man made disasters
interfere with their filing required fees by a certain deadline.
Answer
Pursuant to the Law on Administrative Fees (Official Gazette 17/93, 20/96, 7/98, 13/01), the payment
of a fee can be made within three months after the required deadline, but in that case, the fee will be
increased by 25 per cent.  The fee can be also paid within six months, but in that case, it will be
increased by 100 per cent. It means that  this Law provides for a total of nine months period in whichthe fees can be paid after the required deadline.
Question 63
Concerning the provisions of Article 13 of the draft Law on Industrial Property concerning the
patentability of computer programs:
While few computer programs are likely to meet the standards of patentability, those few that
can, should be patentable.  We suggest elimination of this provision.
Answer
Pursuant to the Law on Industrial Property, Arti cle 19, Paragraph 3, the exception to the object of
protection under this Law is possible only if the subject matter of the patent application does not refer
to some of those objects per se. This applies also to computer programs. So, if the computer programmeets the requirements of patentability, it is protected by means of a patent.
Question 64
Concerning the provisions of Article 24 of th e draft Law on Industrial Property concerning
priority rights:
This provision should also indicate that the right of priority applies with respect to nationals of
Members of the WTO since the WTO Agreement inco rporates the substantive provisions of the
Paris Convention in TRIPS Article 2.1.WT/ACC/807/26
Page 24
Answer
Pursuant the Law on Industrial Property, Article 32, Paragraph 1, “Any legal or natural person who
has filed a proper patent application in any of th e state member of the Paris Union or of the World
Trade Organization shall be granted priority right in the Republic of Macedonia”.
Question 65
Concerning the provisions of Article 80 of the draft Law on Industrial Property:
Macedonia should ensure that the Law will provide that decisions revoking or forfeiting a
patent are appealable, as required by Article 32 of the WTO Agreement on TRIPS.
Answer
Pursuant to Article 14, Paragraph 1 of the Law on Industrial Property, the applicant has a right to
appeal against the first instance decision issued by the Industrial Property Office to the Commission
of the Government of the Republic of Macedonia. This also applies in cases of decisions of revokingor forfeiting a patent.
Question 66
Concerning the provisions of Article 114 of the draft Law on Industrial Property, the industrial
design applicant is to be informed about the grounds specified in the notice of opposition and be
invited to make a declaration and to submit his comments within 30 days.
We seek incorporation of a longer period for response, since, where foreign nationals are
concerned, time would be required to translat e the notice from the office and the opposition
documents, prepare the response and translate it  back into Macedonian.  Thirty days would
leave a foreign national at a considerable disadvantage as compared to Macedonian nationals.
Answer
Macedonia confirms that the period is extended to maximum of 60 days.
Question 67
With regard to Article 134 of the draft Law on Industrial Property, we suggest a lengthening of
the term during which response must be submitte d, because of the need for foreign nationals to
translate documents to and from Macedonian.
Answer
Macedonia confirms that the period is extended to maximum of 60 days.
Question 68
Article 148 of the draft Law on Industrial Property should provide that court decisions should
be appealable.
Answer
Pursuant to Article 15 of the Constitution of the Republic of Macedonia, all court decisions are
appealable.WT/ACC/807/26
Page 25
Trademarks
Question 69
With regard to Article 167 of the draft Law on Industrial Property, we note that the time
allowed for response is insuffi cient for translations of documents from Macedonian to the
language of a foreign national, for preparation of responding documents, and for translation ofthose responding documents into Macedonian.
Answer
Macedonia confirms that the period is extended to maximum of 60 days.
Question 70
Article 173 of the draft Law on Industrial Property should make it clear that such use as is
described in the Article may not give the appearan ce that the products or services in question
are offered or sold with the authorizatio n or sponsorship of the trademark owner.
Answer
We believe that the wording of this Article is clear. The English translation of the Law needs to be
improved.
Question 71
Article 189 of the draft Law on Industrial Property should specify that the period of non-use
must be continuous, if the draft does not do so elsewhere.
Answer
Pursuant to Article 222, paragraph 2 of the Law on Industrial Property: “If the trademark-owner has
not used the trademark for marking the goods or services it refers to without justified reasons for over
5 years from the date of entering the trademark in the trademark register or from the date when thetrademark was last used, the Office may at request of an interested person issue a decision for
termination  of that trademark”.
The reference  to a “continuous” non-use is  included in the amended Article 189.
Question 72
In addition, the draft Law on Industrial Property does not appear to provide trademark
registrants – as required under Article 16(1) of the TRIPS Agreement - with the exclusive right
to prevent third parties using identical or simila r signs for the same or similar goods/services,
where such use would result in a likelihood of confusion.
Article 37 of Macedonia’s draft Law on Industrial Property appears to limit the trademark
registrant’s right to exclusivity only for those g oods/services for which the mark is registered,
not with respect to similar goods and services.
How does Macedonia provide to trademark registrants the exclusive rights conferred under
Article 16(1) of the TRIPS Agreement?WT/ACC/807/26
Page 26
Answer
Pursuant to the Law on Industrial Property, Article 149, Paragraph 3, the trademark-owner has the
right to prohibit use on the market by a third person, without his consent, of a sign which is:
1. identical to trademark used for identical products or services;
2. identical or similar to trademark used for identical or similar products or services if
that similarity may mislead the average consumer, including the possibility of
association between the sign and the trademark;
3. identical or similar to trademark used for different products or services if the
trademark is well-known in the Republic of Macedonia and if the use of that sign
without justified reason may lead to unfair competition and damage the distinctive
character or reputation of the trademark.
With regard to the obligations of Article 16(1) of TRIPS, the Law on Industrial Property, Article 151
provides that:
1. The owner of prior trademark right shall not have the right to require cancellation of
later trademark on the basis of his earlier priority right nor to prohibit use of the later
trademark in relation to the goods or services for which the later trademark has been
used, if he had acquiesced in this use for five consecutive years, unless the latertrademark was protected by means of using false data.
2. The owner of a trademark with later priority  right shall not have the right to prevent
the owner to use its earlier registered trademark.
Geographical Indications
Question 73Article 220 of the draft Law on Industrial Property should make it clear, either through the text
of the law or in regulations, that certificatio n marks, collective marks, labeling recognition,
court decisions and other means of protection id entified by WTO Members in response to the
“checklist” under Article 24.2 of TRIPS will all be considered as recognition of a geographical
indication for purposes of Macedonia’s law if it is clear that the indication meets the definition
for geographical indication.
Answer
The provisions of Article 24.2 of TRIPS will be incorporated in the regulations which will follow the
enactment of the new Law on Industrial Property.
Question 74
Article 223 of the draft Law on Industrial Property appears to limit registration to geographical
names, while TRIPS Article 22.1 does not so limit the indications that can be consideredgeographical indications.  The text should be  clarified to include the broader grounds for
registration.WT/ACC/807/26
Page 27
Answer
The text has been changed. The new definition of geographical name contained in Article 3 of the
Law on Industrial Property reads: “geographical name” is the name and/or designation of the country,
region or place indicating that the product originates from a specific area.
Question 75
We note that under Geographical Indications (GI), Macedonian legislation provides no
additional protection for wines and spirits.  We would welcome clarification as to whether the
protection afforded to GIs of wines and spir its is compatible with TRIPs Article 23, which
requires a higher level of protection than for other goods under Article 22.
Answer
Law on Industrial Property, Article 195, Paragraph 1, states that “The users of geographical names
may request prohibition of: marking products which do not originate from the place of originindicated with the protected geographical name, even when the true geographical origin of the product
is indicated, when translation of the geographical indication is used or when it is accompanied by
additional expressions, like “kind”, “type”, “sort”, “imitation”, etc.;”
Law on Industrial Property Article 126, Paragraph 1, S ub-paragraph 7 states that: “A trademark shall
not protect a sign: 7. the appearance of which may create confusion in trade and mislead the averageconsumer particularly as to the geographical origin, kind, quality or any other characteristic of the
goods or services”.
Pursuant to the Law on Industrial Property Article 172, “If the names of two or more places of origin
of a product are the same or almost the same in writing, protection of such geographical names with
geographical indication or appellation of origin shall be granted to all persons who comply with therequirements under this Law and in the manner prescribed in the regulations issued by the Minister of
Economy, on the principles of equitable treatment of producers on the market and truthful informing
of consumers, except when it may mislead the public as to the true geographical origin.”
Enforcement
Question 76There appears to be some disparity between the law for goods infringing industrial property
rights and the law relating to ex officio acti on for counterfeited goods in relation to TRIPs
Article 58. We would welcome clarification on this point.
Answer
The Law on Industrial Property does not provide for application of ex officio  measures at border
crossings in cases of infringement of industrial property rights. This is not contrary to TRIPs as it
gives the countries a possibility to choose whether they will apply only border measures upon rightholder’s request or ex officio  measures as well.
Question 77
Please describe the circumstances in which the administrative procedures and remedies
provisions would be applicable, rather than the civil judicial procedures and remedies, with
regard to enforcing intellectual property rights.WT/ACC/807/26
Page 28
Answer
In cases of industrial property rights, the advantages of the administrative proceedings carried out by
special Supreme Court units versus the civil judicial proceedings are:
a. specialization of the tribunals
b. smaller number of cases
c. faster procedure
In cases of copyright and related rights, there are no advantages of either type of proceedings.
Question 78
May provisional measures be ordered inaudita altera parte ?
Answer
For industrial property rights, no.
For copyrights, yes. Pursuant to Article 162, Paragraph 2 of the Law on Copyright and Related
Rights, “If there is a well found suspicion that protection of this Article, paragraph 1, may not be
realized later, the court may pronounce and execute such measures without prior notification and
hearing of the adverse party”.
Question 79
Please describe the length of time taken by courts between the request by rights holders for
interim measures and the issuance of an order.
Answer
The procedure upon complaint in cases of infringement of rights is considered urgent. The length  of
procedure depends on each particular case. Interim measures proposed in the complaint are governed
by the Law on Enforcement Procedure, and pursuant Article 9 of this law they are carried out in anurgent manner.
Question 80
In civil cases involving infringement, please describe how damages are calculated?  Are pre-
established damages available to rights holders?
Answer
The general rules for compensation of material and non-material damage, provided by the Law on
Obligations (Official Gazette 18/01, 4/02) shall apply in the cases of infringement of industrial
property rights.
The person whose right has been infringed may not only  claim  damages but also demand that the
person infringing his / her rights is ordered by court to restrain from further violation, or that the court
seize and destroy the infringing goods produced or placed in the market, or that the court order the
person infringing his/her right to provide the record s and data and that the sentence establishing the
infringement is publish by the court in the public information media, on the account of the defendant.WT/ACC/807/26
Page 29
In cases of infringement of the rights acquired under the Law of Industrial Property, when the
infringement of the rights is either premeditated or  a result of gross negligence, the right holder may
seek payment of the usual compensation increased by 200 per cent, regardless of whether the
infringement resulted in any pecuniary damage in the said amount.
In deciding on the amount of the fine in response to claims for damages, the court will take into
account all the circumstances surrounding the case, and particularly the degree of the defendant’s
guilt, the amount of the usual compensation, and the preventive function of the penalty.
When the pecuniary damage is lower than the fine, the right holder shall be entitled to seek the
difference to the full extent of the requested compensation.
Question 81
WT/ACC/807/9 states that in civil and criminal cases, judges are authorized to order expert
examinations of evidence.  May a right holder testify as to whether a product is infringing or is athird party expert required to offer evidence as to the infringing nature of the product?
Answer
The right holder may testify in his/her capacity of a party in the case.
Should expertise be necessary, the court may order expert examination only by experts authorized by
the court.
Question 82
May a court compel production of evidence in civil cases?
Answer
Yes.
Question 83
In civil cases, please describe the manner in wh ich infringing products are disposed of outside
the channels of commerce. Do rights holder s in practice routinely request destruction of
infringing goods?
Answer
Pursuant to Article 159 of the Law on Copyright and Related Rights:
“When the rights from this Law have been infringed, the right holder may demand:
- to have the infringer prohibited in preparations for infringement, the infringement
itself and future infringements;
- to have the infringer eliminate the situation caused by the infringement;
- to have unlawful copies and their packaging or the performance or other objects of
protection according to this Law destroyed or altered;WT/ACC/807/26
Page 30
- to have the master copies, negatives, plates, moulds or other devices that have been
instrumental in the infringement destroyed or altered;
- to have the equipment whose sole or main purpose has been the infringement of
rights according to this Law, which is owned by the infringer, destroyed or altered;
and
- to have the judgment published in the public media at the expense of the infringer, to
such extent and in such manner as the court may determine.
Instead of demands, the holder of right may demand that the infringer or owner convey to him
the copies or the devices as of this Article, paragraph 1, items 3 and 4”.
Pursuant to Article 162, Paragraph 1 of the Law on Copyright and Related Rights, when the exclusive
right has been infringed, the court may, at the request of the right holder, determine provisional
measures to seize, remove from circulation and to store copies, devices, equipment and the documentsrelating thereto.
In criminal proceedings, pursuant to Article 157 of the Criminal Code (Official Gazette  37/96), the
court is empowered to order seizure of the infringing goods.
Yes, the right holders routinely request destruction of infringing goods in practice.
Question 84
Please describe the application process for the su spension of release of goods.  For what length
of time may the application request enforcement action.  If there is an application fee, please
provide the amount and whether the fee relates to  all actions relating to a particular trademark
or for each shipment of goods for which release is suspended.
Answer
The suspension of release of goods is initiated by filing a complaint. The amount of the fee is
determined in the Law on Court Fees (Official Gazette 46/90) depending on the value of the infringed
good.  Pursuant to Article 203 of the Law on Industria l Property, “the action for infringement of rights
under this Law may be instituted within 3 years from the day the plaintiff learnt about the
infringement and the person who performed the infringement and no later than 5 years from the day ofthe infringement”.
Question 85
With regard to border measures, please describe  the amount required for the deposit relating to
the damage liable to occur as a result of the measures.
Answer
Article 215 of the Law on Industrial Property, and Article 165 of the Law on Copyright and Related
Rights provide for customs measures. The amount of the deposit is established by the relevantCustoms authority on the basis of the Law on Industrial Property and the Law on Copyright And
Related Rights, pursuant to customs regulations. The deposit is established in an amount sufficient to
cover the expenses for the storage of the goods. Customs measures shall be initiated upon right
holder’s request and the deposit must not represent excessive burden to the right holder or an
impediment to the realization of his/her right to protection against violation. Customs measures areWT/ACC/807/26
Page 31
always provisional measures and their legal efficiency is always established in a court procedure.
Possible damage to the right holder resulting from these measures and its actual amount is always
determined in a civil procedure.
Question 86
Please report on the amount of time the right ho lder has to submit collateral to customs after
being notified that release of the goods has been suspended.
Answer
The amount of time will be determined in the forthcoming regulations that will be based on the
existing legislation.
Question 87
May customs take action relating to the exportation of counterfeit or pirated goods?
Answer
No.
Question 88
May customs take action relating to the in transit movement of counterfeit or pirated goods?
Answer
No.
Question 89
Please describe the procedure by which a right holder submits collateral to customs.
Answer
See the answer to Question 86.
Question 90
May customs take ex officio action relating to infringement of trademarks?
Answer
The Law on Industrial Property does not provide for application of ex officio  border measures in cases
of infringement of industrial property rights. This is not contrary to TRIPs as each country is given a
possibility to choose whether to take border measures only upon right holder’s request or to take ex
officio border measures as well.
Question 91
Are decisions on the merits of the case made by customs or referred to a judicial or
administrative authority?WT/ACC/807/26
Page 32
Answer
Customs decisions are effective only with regard to temporary seizure of goods, while court decisions
are effective in all other cases.
Question 92
WT/ACC/807/9 states, with regard to border measures, that “[upon notification by the holder of
the industrial property right that aright of indust rial property has been infringed, the Office for
Protection of Industrial Property files a complaint for infringement, that is a complaint for
commercial offence, with the court that has venue.  Where release of goods has been suspended
by customs, is a right holder then required to notify the Office for Protection of Industrial
Property in order for a complaint to be filed wi th the court?  May the right holder file a claim
with the court directly?
Answer
It is obvious that there is some misunderstanding. The Office for Protection of Industrial Property
does not have an authority to file a complaint for infringement.  Where release of goods has been
suspended by customs, the right holder is not required to notify the Office for Protection of Industrial
Property in order for a complaint to be filed with the court.  And yes, the right holder may file a claim
with the court directly.
Question 93
May customs impose monetary fines in ad dition to seizure of infringing goods?
Answer
No.
Question 94
Please describe customs procedures providing fo r a right of inspection and information and the
manner in which a right holder may inspect goods to determine if they are infringing
Answer
Customs authority may, upon request by the right holder or his/her representative, examine the
imported goods (inspect the goods and the accompanying documents) and withdraw such goods fromthe market or store it in a safe place, when the im porter fails to provide a creditable evidence of the
manufacture of the imported goods.
Question 95
Please describe the range of fines that may be assessed in criminal cases relating to patent,
trademark and copyright infringement.
Answer
Criminal acts  are governed by Article 157 of the Criminal Code (Official Gazette 37/96). This Article
provides for two types of measures: fine and imprisonment. Any unauthorized use of a copyright
work or works subject to related rights is punishable by fine or imprisonment of up to one year.WT/ACC/807/26
Page 33
Infringement resulting in acquisition of a considerable illegal economic gain is punishable with a fine
or imprisonment of up to three years. The perpetrato rs of infringements resulting in significant illegal
economic gain may be punished with imprisonment of three months to five years. Attempts to
perform such act is also punishable. Copies of copyright works and works subject to related rights and
the means for their reproduction shall be seized.
The Criminal Code recognizes the following criminal acts:
Unauthorized use of someone else’s company name
He who uses someone else’s company name, mark, trade mark or special mark of goods,
origin of product or service, with an intention to deceive the buyers or users of services, shall
be punished by a fine or imprisonment of up to three years.
The same punishment shall be applied to the persons that use in their production, without
authorization and with intention to deceive the buyers, someone else’s designs or models, orplace on the market articles manufactured through use of such models. The goods shall be
seized.
Unauthorized use of someone else’s invention
He who uses, publishes, rents or assigns someone else’s registered or patented invention shall
be punished with a fine or imprisonment of up to three years. The goods shall be seized.
Falsification of goods, measures and weighs indicators
He who, with intention to use them as genui ne, counterfeits indicators of domestic and
foreign goods, such as seals, stamps or measures used in branding gold, silver, cattle, wood or
any other goods, or changes the genuine indicators, or uses false indicators as genuine, will be
punished with imprisonment of three months to five years.
The penalty under paragraph 1 shall apply also to persons who counterfeit measures and
weighs.
He who without authorization makes, provides, sells or lends for use means for making signs
marking goods as genuine, shall be punished by a fine or imprisonment of up to three years.
False signs, measures and weighs, as well as the means for their making, shall be seized.
Question 96
Please describe the level of infringing activity required to initiate criminal prosecution for each
type of intellectual property right infringement and the level of infringing activity required for
imprisonment to be ordered
Answer
Under the Criminal Code, any infringer found to be of sound mind at the time of the intentional
infringement shall be liable to criminal prosecution.
See also the answer to Question 95.WT/ACC/807/26
Page 34
Question 97
In criminal cases, do courts routinely order the destruction of infringing goods?  Are materials
and implements, the predominant use of which has been in the commission of the offence,
ordered destroyed by the courts in criminal cases?
Answer
Yes.
Question 98
Does data exist on the number of criminal prosecutions for trademark, patent and copyright
infringement, fines ordered or prison sentences issued?
Answer
Yes.
Question 99
We seek a commitment in Macedonia’s accession documents for full TRIPS consistency from
the date of accession, without recourse to any transition. Does Macedonia agree?
Answer
Macedonia will include such commitment in its WTO accession documents.
Notifications
Question 100
We seek a commitment for Macedonia’s initial notification.
Answer
Macedonia accepts the commitment for initial notifications contained in paragraph 216 of
WT/ACC/SPEC/807/4/Rev/1.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
2. Economic integration: Customs unions and free trade agreements
Question 101
We seek a commitment from Macedonia that it will observe the provisions of the WTO
including Article XXIV of the GATT 1994 and Article V of the GATS in its participation in
trade agreements, and will ensure that the provis ions of these WTO agreements for notification,
consultation and other requirements concerning free trade areas and customs unions of which
Macedonia is a member were met from the date of accession. Does Macedonia agree?WT/ACC/807/26
Page 35
Answer
Yes.
Question 102
We seek confirmation that Macedonia will, upon accession, submit notifications and copies of its
free trade agreements, including those established in the context of the Stability PactMemorandum of Understanding, to the approp riate WTO councils and the Committee on
Regional Trade Agreements (CRTA).
Answer
Macedonia confirms that upon accession it will submit all necessary notifications and copies of its
free trade agreements to the appropriate WTO bodies.WT/ACC/807/26
Page 36
ATTACHMENT 1
List of Tariff Rate Quotas
Granted Bilaterally under Free Trade Agreements
Year:  2002
Note: Duty free tariff quotas are entered in the tables only as a quantity number in the second column. In-
quota rates are properly explained below the respective tables.
Yugoslavia
HS Quantity (tons)
0203 21
0203 220203 29        2.000
0210   300
0401         1.000
0406   250
1001 10 00 90 1001 90 99 00       50.000
1101 00 5.000
1512 19 91 00 3.000
1601 00 1.500
2402 20    250
Slovenia
HS Quantity (tons)
0207 3.850
0210 19 60 00
0210 19 70 000210 19 81 000210 19 89 00100
0401 20 2.200
0402 10   50
0405 10 250
0406 90 69 00
0406 90 78 000406 90 86 00
0406 90 87 00
0406 90 88 000406 90 93 000406 90 23 00  50
1502 00 10 00 300
1601 00 1.500
1602 500
1604 13 400
1704 90 140
1806 320
1905 30 330
1905 90 00 00 150
2009 600
2103 30 90 00 200WT/ACC/807/26
Page 37
Bulgaria
HS Quantity (tons)
0201
0202300 (a)
0203 200 (a)
0207 500
0301 93 00 00
0301 99 11 00
0301 99 19 00150
0303 79 11 00
0307 79 19 00100
0406 90 29 00 150
0406 90 50 10 300
0701 90 100 (a)
0802 31 00 00
0802 32 00 0040 (a)
1108 12 400 (a)
1202 150 (a)
1209 21 00 00 15 (a)
1209 91 5 (a)
1211 90 50 (a)
1517 10 50 (b)
1601 00 100 (b)
1602 100 (c)
1702 30
1702 401702 601.000
1704 90 250 (d)
1806 200 (d)
1902 100 (e)
1905 100 (e)
2003 10 50 (c)
2007 99 50 (f)
2009 80
2009 90200 (e)
2105 00 100 (d)
2201 300 (g)
2202 100 (e)
2203 00 20.000 hl (c)
2204 21 81 00
2204 21 82 0010.000 hl (a)
2302 10
2302 30800
2306 30 00 00 500
Reduction of MFN tariff:
50%
10%20%
35%
25%28%12%WT/ACC/807/26
Page 38
Turkey
HS Quantity (tons)
0207 3.000
0713 40 00 90    500
0802 22 00 00    250
0805 10
0805 200805 300805 40 00 00
0805 90 00 008.000
0806 20 250
1509 10 90 00 100
1604 14
1604 20 70 00350
2005 70 700
2008 200
2203 00 300 (a)
(a) 50% of MFN tariff
Croatia
HS Quantity (tons)
0207 12    700
0207 14    500
0210    200
0302 69 11 10
0302 69 19 00   250
0401 20 11 00
0401 20 91 00   600
0401 30 11 00
0401 30 31 000401 30 91 00   100
0402 21      10
0403 10 91 00    150
0403 90    300
0405 10      50
0406 30    150
0406 90 50 10
0406 90 99 100406 90 29 00   150
0701 90 2.500
0813      20
1509     80
1601   400
1602            1.000
1604            1.620
1704 90               300
1806               550
1901 10 00 00               120
1901 90               160
1905 30               600
1905 90               110
2005 70                 50WT/ACC/807/26
Page 39
Croatia
HS Quantity (tons)
2007 99               100
2009 19               200
2009 30               100
2009 90               300
2102 10 31 00                 10
2101 30               100
2103 30 90 00                 40
2103 90               160
2104 10               400
2105 00            1.000
2106               500
2202 90               350
2208 20               800
2209               500
2401 10            2.500
Ukraine
HS Quantity (tons)
0201
02021.000
0203 21
0203 22
0203 29   300
0402    400
1003 00 90 20 5.000
1005 90 00 00           20.000
1512 11    10.000.000 l
1701 12           15.000
1704                100
1806                100
1905 30                  50
2007 99                100
2201         100.000 l
2209         100.000 l
EFTA - Switzerland
HS Quantity (tons)
0402 50
0406 90             50
EFTA - Norway
HS Quantity (tons)
0406 50
2208 90        5.000 lWT/ACC/807/26
Page 40
European Union
HS Quantity (tons)
0206 29 300
0207          2.000
0402 300
0405 10 200
0406 20
0406 30  70
0805 10
0805 20
0805 30
0805 40 00 00         7.000
1005 90 00 00        20.000
1601 00 600
1602 500
2005 70          1.000
1507 10
1512 11
1514 10       10.000
1701 11
1701 12       10.000
2309 90
2309 90 20 002309 90 31 002309 90 33 002309 90 35 00
2309 90 39 00
2309 90 41 002309 90 43 002309 90 49 002309 90 51 00
2309 90 53 00
2309 90 59 002309 90 70 002309 90 91 002309 90 95 002309 90 97 00       10.000
0203 2.000 (a)
0406    600 (a)
(a) 80% of MFN tariffWT/ACC/807/26
Page 41
ATTACHMENT 2
Implementation of the Agreement of Article VII
of the General Agreement on Tariffs and Trade 1994WT/ACC/807/26
Page 42WTO Agreement on Implementation of
Article VII of the GATT 1994Relevant Provisions of the Macedonian Legislation that Implements
the WTO AgreementComment
Article 1
1.1 The customs value of imported goods shall be the transaction
value, that is the price actually paid or payable for the goodswhen sold for export to the country of importation adjusted inaccordance with the provisions of Article 8, provided:Article 29 Paragraph 1 of the Customs Law (CL)
(1) The customs value of imported goods shall be the transaction
value, that is the price actually paid or payable for the goodswhen sold for export to the Republic of Macedonia adjustedin accordance with the provisions of Article 36 and 37 of theCode, provided :
1.1 (a) that there are no restrictions as to the disposition or use
of the goods by the buyer other than restrictions which:(i) are imposed or required by law or by the public
authorities in the country of importation;
(ii) limit the geographical area in which the goods may be
resold;  or
(iii) do not substantially affect the value of the goods;Article 29, Paragraph 1 a) of CL
a) that there are no restrictions as to the disposition or use of the
goods by the buyer other than restrictions which :- are imposed or required by law or other provisions of
the Republic of Macedonia;
- limit the geographical area in which the goods may be
resold; or
- do not substantially affect the value of the goods;
1.1 (b) that the sale or price is not subject to some condition
or consideration for which a value cannot be determined withrespect to the goods being valued;Article 29, Paragraph 1 b) of CL
b) that the sale or price is not subject to some condition or
consideration for which a value cannot be determined withrespect to the goods being valued;
1.1 (c) that no part of the proceeds of any subsequent resale,
disposal or use of the goods by the buyer will accrue directlyor indirectly to the seller, unless an appropriate adjustmentcan be made in accordance with the provisions of Article 8;Article 29, Paragraph 1 c) of CL
c) that no part of the proceeds of any subsequent resale, disposal
or use of the goods by the buyer will acquire directly orindirectly to the seller, unless an appropriate adjustment canbe made in accordance with the provisions of Article 36 ofthe Code; and
1.1 (d) that the buyer and seller are not related, or where the
buyer and seller are related, that the transaction value isacceptable for customs purposes under the provisions ofparagraph 2.Article 29, Paragraph 1 d) of CL
d) that the buyer and seller are not related, or where the buyer
and the seller are related, that the transaction value isacceptable for customs purposes under the provisions ofparagraph 2.WT/ACC/807/26
Page 43WTO Agreement on Implementation of
Article VII of the GATT 1994Relevant Provisions of the Macedonian Legislation that Implements
the WTO AgreementComment
1.2 (a) In determining whether the transaction value is
acceptable for the purposes of paragraph 1, the fact that thebuyer and the seller are related within the meaning ofArticle 15 shall not in itself be grounds for regarding thetransaction value as unacceptable.  In such case the
circumstances surrounding the sale shall be examined and the
transaction value shall be accepted provided that therelationship did not influence the price.  If, in the light ofinformation provided by the importer or otherwise, thecustoms administration has grounds for considering that therelationship influenced the price, it shall communicate its
grounds to the importer and the importer shall be given a
reasonable opportunity to respond.  If the importer sorequests, the communication of the grounds shall be inwriting.Article 29, Paragraph 2 a) of CL
(2) a) In determining whether the transaction value is
acceptable for the purposes of paragraph 1, the fact that thebuyer and the seller are related shall not in itself be ground forregarding the transaction value as unacceptable. In such casethe circumstances surrounding the sale shall be examined and
the transaction value shall be  accepted provided that the
relationship did not influence the price. If, in the light ofinformation provided by the declarant or otherwise, the
Customs authority has grounds for considering that therelationship influenced the price, it shall communicate itsgrounds to the declarant and th e declarant shall be given a
reasonable opportunity to respond. If the declarant so
requests, the communication of the grounds shall be inwriting.
1.2 (b) In a sale between related persons, the transaction value
shall be accepted and the goods valued in accordance with the
provisions of paragraph 1 whenever the importerdemonstrates that such value closely approximates to one ofthe following occurring at or about the same time:(i) the transaction value in sales to unrelated buyers of
identical or similar goods for export to the same
country of importation;
(ii) the customs value of identical or similar goods as
determined under the provisions of Article 5;
(iii) the customs value of identical or similar goods as
determined under the provisions of Article 6;
In applying the foregoing tests, due account shall be taken of
demonstrated differences in commercial levels, quantitylevels, the elements enumerated in Article 8 and costsincurred by the seller in sales in which the seller and thebuyer are not related that are not incurred by the seller in salesin which the seller and the buyer are related.Article 29, Paragraph 2 b) of CL
b) In a sale between related persons, the transaction value shall
be accepted and the goods valued in accordance with the
provisions of paragraph 1 whenever the declarantdemonstrates that such value closely approximates to one ofthe following occurring at or about the same time :1. the transaction value in sales to unrelated sellers and
buyers of identical or similar goods for export to the
Republic of Macedonia;
2. the customs value of identical or similar goods as
determined under the provisions of Article 33 of theCode;
3. the customs value of identical or similar goods as
determined under the provisions of Article 34 of the
Code;
In applying the foregoing tests, due account shall be taken ofdemonstrated differences in commercial levels, quantitylevels, the elements enumerated in Article 36 of the Code andcosts incurred by the seller in sales in which the seller and the
buyer are not related that are not incurred by the seller in sales
in which the seller and the buyer are related.WT/ACC/807/26
Page 44WTO Agreement on Implementation of
Article VII of the GATT 1994Relevant Provisions of the Macedonian Legislation that Implements
the WTO AgreementComment
1.2 (c) The tests set forth in paragraph 2(b) are to be used at
the initiative of the importer and only for comparisonpurposes.  Substitute values may not be established under theprovisions of paragraph 2(b).Article 29, Paragraph 2 c) of CL
c) The tests set forth in subparagraph b) are to be used at the
initiative of the declarant and only for comparison purposes.Substitute values may not be established under the saidsubparagraph.
    Article 2
2.1 (a) If the customs value of the imported goods cannot be
determined under the provisions of Article 1, the customs
value shall be the transaction value of identical goods sold forexport to the same country of importation and exported at orabout the same time as the goods being valued.Article 30, Paragraph 1 a) of CL
(1) a) If the customs value of the imported goods cannot be
determined under the provisions of Article 29 of the Code, the
customs value shall be the transaction value of identicalgoods sold for export to the Republic of Macedonia andexported at or about the same time as the goods being valued.
2.1 (b) In applying this Article, the transaction value of
identical goods in a sale at the same commercial level and insubstantially the same quantity as the goods being valuedshall be used to determine the customs value.  Where no suchsale is found, the transaction value of identical goods sold at adifferent commercial level and/or in different quantities,
adjusted to take account of differences attributable to
commercial level and/or to quantity, shall be used, providedthat such adjustments can be made on the basis ofdemonstrated evidence which clearly establishes thereasonableness and accuracy of the adjustment, whether the
adjustment leads to an increas e or a decrease in the value.Article 30, Paragraph 1 b) of CL
b) In applying this Article, the transaction value of identical
goods in a sale at the same commercial level and insubstantially the same quantity as the goods being valuedshall be used to determine the customs value. Where no suchsale is found, the transaction value of identical goods sold at adifferent commercial level and/or in different quantities,
adjusted to take account of differences attributable to
commercial level and/or to quantity, shall be used, providedthat such adjustments can be made on the basis ofdemonstrated evidence which clearly establishes thereasonableness and accuracy of the adjustment, whether the
adjustment leads to an increas e or a decrease in the value.
2.2 Where the costs and charges referred to in paragraph 2 of
Article 8 are included in the transaction value, an adjustmentshall be made to take account of significant differences insuch costs and charges between the imported goods and theidentical goods in question arising from differences in
distances and modes of transport.Article 30, Paragraph 2 of CL
(2) Where the costs and charges referred to in Article 36 (1) e) of
the Code are included in the transaction value, an adjustmentshall be made to take account of significant differences insuch costs and charges between the imported goods and theidentical goods in question arising from differences in
distances and modes of transport.WT/ACC/807/26
Page 45WTO Agreement on Implementation of
Article VII of the GATT 1994Relevant Provisions of the Macedonian Legislation that Implements
the WTO AgreementComment
2.3 If, in applying this Article, more than one transaction value of
identical goods is found, the lowest such value shall be usedto determine the customs value of the imported goods.Article 30, Paragraph 3 of CL
(3) If, in applying this Article, more than one transaction value of
identical goods is found, the lowest such value shall be usedto determine the customs value of the imported goods.
Article 3
3.1 (a) If the customs value of the imported goods cannot be
determined under the provisions of Articles 1 and 2, the
customs value shall be the transaction value of similar goods
sold for export to the same country of importation andexported at or about the same time as the goods being valued.Article 31, Paragraph 1 a) of CL
(1) a) If the customs value of the imported goods cannot be
determined under the provisions of Articles 29 and 30 of the
Code, the customs value shall be the transaction value of
similar goods sold for export to the Republic of Macedoniaand exported at or about the same time as the goods beingvalued.
3.1 (b) In applying this Article, the transaction value of
similar goods in a sale at the same commercial level and in
substantially the same quantity as the goods being valuedshall be used to determine the customs value.  Where no suchsale is found, the transaction value of similar goods sold at adifferent commercial level and/or in different quantities,adjusted to take account of differences attributable to
commercial level and/or to quantity, shall be used, provided
that such adjustments can be made on the basis ofdemonstrated evidence which clearly establishes thereasonableness and accuracy of the adjustment, whether theadjustment leads to an increas e or a decrease in the value.Article 31, Paragraph 1 b) of CL
b) In applying this Article, the transaction value of similar goods
in a sale at the same commercial level and in substantially the
same quantity as the goods being valued shall be used todetermine the customs value. Where no such sale is found, thetransaction value of similar goods sold at a differentcommercial level and/or in different quantities, adjusted totake account of differences attributable to commercial level
and/or to quantity, shall be used, provided that such
adjustments can be made on the basis of demonstratedevidence which clearly establishes the reasonableness andaccuracy of the adjustment, whether the adjustment leads toan increase or a decrease in the value.WT/ACC/807/26
Page 46WTO Agreement on Implementation of
Article VII of the GATT 1994Relevant Provisions of the Macedonian Legislation that Implements
the WTO AgreementComment
3.2 Where the costs and charges referred to in paragraph 2 of
Article 8 are included in the transaction value, an adjustmentshall be made to take account of significant differences insuch costs and charges between the imported goods and thesimilar goods in question arising from differences in distances
and modes of transport.Article 31, Paragraph 2 of CL
(2) Where the costs and charges referred to in Article 36 (1) e) of
the Code are included in the transaction value, an adjustmentshall be made to take account of significant differences insuch costs and charges between the imported goods and thesimilar goods in question arising from differences in distances
and modes of transport.
3.3 If, in applying this Article, more than one transaction value of
similar goods is found, the lowest such value shall be used todetermine the customs value of the imported goods.Article 31, Paragraph 3 of CL
(3) If, in applying this Article, more than one transaction value of
similar goods is found, the lowest such value shall be used todetermine the customs value of the imported goods.
Article 4
If the customs value of the imported goods cannot be determined
under the provisions of Articles 1, 2 and 3, the customs value shall
be determined under the provisions of Article 5 or, when the customsvalue cannot be determined under that Article, under the provisionsof Article 6 except that, at the request of the importer, the order ofapplication of Articles 5 and 6 shall be reversed.Article 32 of CL
If the customs value of the imported goods cannot be determined
under the provisions of Articles 29, 30 and 31 of the Code, the
customs value shall be determined under the provisions of Article 33of the Code. If, the customs value cannot be determined underArticle 33 of the Code, the customs value shall be determined underthe provisions of Article 34 of the Code except that, at the request ofthe declarant, the order of application of Articles 33 and 34 of the
Code shall be reversed.WT/ACC/807/26
Page 47WTO Agreement on Implementation of
Article VII of the GATT 1994Relevant Provisions of the Macedonian Legislation that Implements
the WTO AgreementComment
Article 5
5.1 (a) If the imported goods or identical or similar imported
goods are sold in the country of importation in the conditionas imported, the customs value of the imported goods underthe provisions of this Article shall be based on the unit priceat which the imported goods or identical or similar imported
goods are so sold in the greatest aggregate quantity, at or
about the time of the importation of the goods being valued,to persons who are not related to the persons from whom theybuy such goods, subject to deductions for the following:(i) either the commissions usually paid or agreed to be
paid or the additions usually made for profit and
general expenses in connection with sales in such
country of imported goods of the same class or kind;
(ii) the usual costs of transport and insurance and
associated costs incurred within the country ofimportation;
(iii) where appropriate, the costs and charges referred to in
paragraph 2 of Article 8;  and
(iv) the customs duties and other national taxes payable in
the country of importation by reason of the importationor sale of the goods.Article 33, Paragraph 1 a) of CL
(1) a) If the imported goods or identical or similar imported
goods are sold in the Republic of Macedonia in the conditionas imported, the customs value of the imported goods underthe provisions of this Article shall be based on the unit priceat which the imported goods or identical or similar imported
goods are so sold in the greatest aggregate quantity, at or
about the time of the importation of the goods being valued,to persons who are not related to the persons from whom theybuy such goods, subject to deductions for the following :1. either the commissions usually paid or agreed to be
paid or the additions usually made for profit and
general expenses (including the direct and indirect
costs of marketing the goods in question) inconnection with sales in the Republic of Macedonia ofimported goods of the same class or kind;
2. the usual costs of transport and insurance and
associated costs incurred within the Republic of
Macedonia;
3. where appropriate, the costs and charges referred to in
Article 36 (1) e) of the Code; and
4. the import duties and other charges payable in the
Republic of Macedonia by reason of the importation orsale of the goods.
5.1 (b) If neither the imported goods nor identical nor similar
imported goods are sold at or about the time of importation ofthe goods being valued, the customs value shall, subjectotherwise to the provisions of paragraph 1(a), be based on theunit price at which the imported goods or identical or similar
imported goods are sold in the country of importation in the
condition as imported at the earliest date after the importationof the goods being valued but before the expiration of 90 daysafter such importation.Article 33, Paragraph 1 b) of CL
b) If neither the imported goods nor identical nor similar
imported goods are sold at or about the time of importation ofthe goods being valued, the customs value shall, subjectotherwise to the provisions of paragraph 1 (a), be based on theunit price at which the imported goods or identical or similar
imported goods are sold in the Republic of Macedonia in the
condition as imported at the earliest date after the importationof the goods being valued but before the expiration of 90 daysafter such importation.WT/ACC/807/26
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5.2 If neither the imported goods nor identical nor similar
imported goods are sold in the country of importation in thecondition as imported, then, if the importer so requests, thecustoms value shall be based on the unit price at which theimported goods, after further processing, are sold in the
greatest aggregate quantity to persons in the country of
importation who are not related to the persons from whomthey buy such goods, due allowance being made for the valueadded by such processing and the deductions provided for inparagraph 1(a).Article 33, Paragraph 2 of CL
(2) If neither the imported goods nor identical nor similar
imported goods are sold in the Republic of Macedonia in thecondition as imported, then, if the importer so requests, thecustoms value shall be based on the unit price at which theimported goods, after further processing, are sold in the
greatest aggregate quantity to persons in the Republic of
Macedonia who are not related to the persons from whomthey buy such goods, due allowance being made for the valueadded by such processing and the deductions provided for inparagraph 1 a).
Article 6
6.1 The customs value of imported goods under the provisions of
this Article shall be based on a computed value.  Computed
value shall consist of the sum of:(a) the cost or value of materials and fabrication or other
processing employed in producing the imported goods;
(b) an amount for profit and general expenses equal to that
usually reflected in sales of goods of the same class or
kind as the goods being valued which are made byproducers in the country of exportation for export tothe country of importation;
(c) the cost or value of all other expenses necessary to
reflect the valuation option chosen by the Member
under paragraph 2 of Article 8.Article 34, Paragraph 1 of CL
(1) The customs value of imported goods under the provisions of
this Article shall be based on a computed value. Computed
value shall consist of the sum of :(a) the cost or value of materials and fabrication or other
processing employed in producing the imported goods;
(b) an amount for profit and general expenses equal to that
usually reflected in sales of goods of the same class or
kind as the goods being valued which are made byproducers in the country of exportation for export tothe Republic of Macedonia;
(c) the cost or value of all other expenses referred to in
Article 36 (1) e) of the Code.WT/ACC/807/26
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6.2 No Member may require or compel any person not resident in
its own territory to produce for examination, or to allowaccess to, any account or other record for the purposes ofdetermining a computed value.  However, informationsupplied by the producer of the goods for the purposes of
determining the customs value under the provisions of this
Article may be verified in another country by the authoritiesof the country of importation with the agreement of theproducer and provided they give sufficient advance notice tothe government of the country in question and the latter doesnot object to the investigation.Article 34, Paragraph 2 of CL
(2) It shall not be required or compelled any person not resident
on the territory of the Republic of Macedonia to produce forexamination, or to allow access to, any account or otherrecord for the purposes of determining a computed value.However, information supplied by the producer of the goods
for the purposes of determining the customs value under this
Article may be verified in another country by the customsauthority with the agreement of the producer and providedthat customs  authority give sufficient advance notice to theauthorities of the country in question and the latter do notobject to the investigation.
Article 7
7.1 If the customs value of the imported goods cannot be
determined under the provisions of Articles 1 through 6,inclusive, the customs value shall be determined usingreasonable means consistent with the principles and generalprovisions of this Agreement and of Article VII of
GATT 1994 and on the basis of data available in the country
of importation.Article 35, Paragraph 1 of CL
(1) Where the customs value of imported goods cannot be
determined under Articles 29 to 34 of the Code, it shall bedetermined, on the basis of data available in the Republic ofMacedonia, using reasonable means consistent with theprinciples and general provisions of:
- the Agreement on implementation of Article VII of the
General Agreement on Tariffs and Trade of 1994
- Article VII of the General Agreement on Tariffs and
Trade of 1994
- the provisions of Articles 28 to 38-h of this Code.WT/ACC/807/26
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7.2 No customs value shall be determined under the provisions of
this Article on the basis of:(a) the selling price in the country of importation of goods
produced in such country;
(b) a system which provides for the acceptance for
customs purposes of the higher of two alternative
values;
(c) the price of goods on the domestic market of the
country of exportation;
(d) the cost of production other than computed values
which have been determined for identical or similar
goods in accordance with the provisions of Article 6;
(e) the price of the goods for export to a country other
than the country of importation;
(f) minimum customs values;  or(g) arbitrary or fictitious values.Article 35, Paragraph 2 of CL
(2) No customs value shall be determined under the provisions of
this Article on the basis of :a) the selling price in the Republic of Macedonia of
goods produced in the Republic of Macedonia;
b) a system which provides for the acceptance for
customs purposes of the higher of two alternative
values;
c) the price of goods on the domestic market of the
country of exportation;
d) the cost of production other than computed values
which have been determined for identical or similar
goods in accordance with the provisions of Article 34
of the Code;
e) the price of the goods for export to a country other
than Republic of Macedonia;
f) minimum customs values; or
g) arbitrary or fictitious values.
7.3. If the importer so requests, the importer shall be informed in
writing of the customs value determined under the provisionsof this Article and the method used to determine such value.Article 35, Paragraph 3 of CL
(3) If the importer so requests, the importer shall be informed in
writing of the customs value determined under the provisionsof this Article and the method used to determine such value.WT/ACC/807/26
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 Article 8
8.1 In determining the customs value under the provisions of
Article 1, there shall be added to the price actually paid orpayable for the imported goods:(a) the following, to the extent that they are incurred by
the buyer but are not included in the price actually paid
or payable for the goods:
(i) commissions and brokerage, except buying
commissions;
(ii) the cost of containers which are treated as being one
for customs purposes with the goods in question;
(iii) the cost of packing whether for labour or materials;
(b) the value, apportioned as appropriate, of the following
goods and services where supplied directly orindirectly by the buyer free of charge or at reducedcost for use in connection with the production and salefor export of the imported goods, to the extent thatsuch value has not been included in the price actually
paid or payable:
(i) materials, components, parts and similar items
incorporated in the imported goods;
(ii) tools, dies, moulds and similar items used in the
production of the imported goods;
(iii) materials consumed in the production of the imported
goods;
(iv) engineering, development, artwork, design work, and
plans and sketches undertaken elsewhere than in thecountry of importation and necessary for theproduction of the imported goods;
(c) royalties and licence fees related to the goods being
valued that the buyer must pay, either directly orindirectly, as a condition of sale of the goods beingvalued, to the extent that such royalties and fees arenot included in the price actually paid or payable;
(d) the value of any part of the proceeds of any subsequent
resale, disposal or use of the imported goods that
accrues directly or indirectly to the seller.Article 36, Paragraph 1 of CL
(1) In determining the customs value under Article 29 of the
Code, there shall be added to the price actually paid orpayable for the imported goods:a) the following, to the extent that they are incurred by
the buyer but are not included in the price actually paid
or payable for the goods:
1. commissions and brokerage, except buying
commissions,
2. the cost of containers which are treated as being one,
for customs purposes, with the goods in question,
3. the cost of packing, whether for labour or materials;
b) the value, apportioned as appropriate, of the following
goods and services where supplied directly orindirectly by the buyer free of charge or at reducedcost for use in connection with the production and salefor export of the imported goods, to the extent thatsuch value has not been included in the price actually
paid or payable:
1. materials, components, parts and similar items
incorporated in the imported goods,
2. tools, dies, moulds and similar items used in the
production of the imported goods,
3. materials consumed in the production of the imported
goods,
4. engineering, development, artwork, design work, and
plans and sketches undertaken elsewhere than in theRepublic of Macedonia and necessary for theproduction of the imported goods;
c) royalties and licence fees related to the goods being
valued that the buyer must pay, either directly orindirectly, as a condition of sale of the goods beingvalued, to the extent that such royalties and fees arenot included in the price actually paid or payable;
d) the value of any part of the proceeds of any subsequent
resale, disposal or use of the imported goods that
accrues directly or indirectly to the seller;WT/ACC/807/26
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8.2 In framing its legislation, each Member shall provide for the
inclusion in or the exclusion from the customs value, in wholeor in part, of the following:(a) the cost of transport of the imported goods to the port
or place of importation;
(b) loading, unloading and handling charges associated
with the transport of the imported goods to the port orplace of importation;  and
(c) the cost of insurance.Article 36, Paragraph 1 e) of CL
e) 1. the cost of transport and insurance of the imported
goods to the place of introduction into the customsterritory of the Republic of Macedonia, and
2. loading and handling charges associated with the
transport of the imported goods to the place of
introduction into the customs territory of the Republic
of Macedonia.
8.3 Additions to the price actually paid or payable shall be made
under this Article only on the basis of objective and
quantifiable data.Article 36, Paragraph 2 of CL
 (2) Additions to the price actually paid or payable shall be made
under this Article only on the basis of objective and
quantifiable data.
8.4 No additions shall be made to the price actually paid or
payable in determining the customs value except as providedin this Article.Article 36, Paragraph 3 of CL
(3) No additions shall be made to the price actually paid or
payable in determining the customs value except as providedin this Article.
 Article 9
9.1 Where the conversion of currency is necessary for the
determination of the customs value, the rate of exchange to beused shall be that duly published by the competent authoritiesof the country of importation concerned and shall reflect aseffectively as possible, in respect of the period covered byeach such document of publication, the current value of such
currency in commercial transactions in terms of the currency
of the country of importation.
9.2 The conversion rate to be used shall be that in effect at the
time of exportation or the time of importation, as provided byeach Member.Article 38 f) of CL
Where the conversion of currency is necessary for the determination
of the customs value, the rate of exchange to be used shall be thatdetermined on the date which customs debt has incurred, inaccordance to regulation governing foreign currency transactions.WT/ACC/807/26
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Article 10
All information which is by nature confidential or which is provided
on a confidential basis for the purposes of customs valuation shall betreated as strictly confidential by the authorities concerned who shallnot disclose it without the specific permission of the person orgovernment providing such information, except to the extent that it
may be required to be disclosed in the context of judicial
proceedings.Article 29 of Regulation
For all information which is by nature confidential or which is
provided on a confidential basis for the purposes of customsvaluation shall be treated as strictly confidential, provisions ofArticle 19 of the Customs Code shall apply.
Article 11
11.1 The legislation of each Member shall provide in regard to a
determination of customs value for the right of appeal,without penalty, by the importer or any other person liable forthe payment of the duty.
11.2 An initial right of appeal without penalty may be to an
authority within the customs administration or to an
independent body, but the legislation of each Member shallprovide for the right of appeal without penalty to a judicialauthority.Article 15 of CL
1. If this Law does not stipulate differently, customs officials
who conduct the customs procedure apply the Law onGeneral Administrative Procedure.
2. When  customs officials  entirely accept a request in the
Customs procedure, such a decision can be an official
annotation on the initial request.
3.  An appeal submitted to the Minister of Finance is possible
against decisions made by customs officials, under theadministrative procedure, within eight days from the receiptof the decision.
4.  The appeal does not delay the application of the decision.
11.3 Notice of the decision on appeal shall be given to the
appellant and the reasons for such decision shall be providedin writing.   The appellant shall also be informed of any rightsof further appeal.
 Article 12
Laws, regulations, judicial decisions and administrative rulings ofgeneral application giving effect to this Agreement shall bepublished in conformity with Article X of GATT 1994 by thecountry of importation concerned.Pursuant to Article 52 of the Macedonian Constitution and Article 3
of the Law on  Publishing Laws and Other Regulations and Acts inthe Official Gazette of the Republic of Macedonia, provide forobligatory publishing of all laws, regulations and other documents of
general application in the Official Gazette within seven days of their
enactment.WT/ACC/807/26
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Article 13
If, in the course of determining the customs value of imported goods,
it becomes necessary to delay the final determination of suchcustoms value, the importer of the goods shall nevertheless be able towithdraw them from customs if, where so required, the importerprovides sufficient guarantee in the form of a surety, a deposit or
some other appropriate instrument, covering the ultimate payment of
customs duties for which the goods may be liable.  The legislation ofeach Member shall make provisions for such circumstances.Article 38g of CL
If, in the course of determining the customs value of imported goods,
it becomes necessary to delay the final determination of suchcustoms value, the declarant shall nevertheless be able to withdrawthem from customs, provided that, payment of a customs debt, inaccordance to Article 172 of the Code, covering the ultimate
payment of customs duties for which the goods may be liable, is
ensured.
Article 14
The notes at Annex I to this Agreement form an integral part of thisAgreement and the Articles of this Agreement are to be read andapplied in conjunction with their respective notes.  Annexes II and
III also form an integral part of this Agreement.Article 1 of Regulation
(1) In applying the provisions of Articles 28 to 38-h of the
Customs Code and those of this Regulation, the provisions setout in Annex 1, being integral part of this Regulation, shall
also apply.
The provisions as set out in the first column of Annex 1 shallbe applied in the light of the interpretative note appearing inthe second column.
(2) If it is necessary to make reference to generally accepted
accounting principles in determining the customs value, the
provisions of Annex 2, being integral part of this Regulation,
shall apply.
Article 15
15.1 In this Agreement:
(a) "customs value of imported goods" means the value of
goods for the purposes of levying ad valorem duties ofcustoms on imported goods;
(b) "country of importation" means country or customs
territory of importation;  and
(c) "produced" includes grown, manufactured and mined.Article 28 of CL
"The provisions of Article 28 to 39 of the Code shall determine the
customs value of goods for the purposes of applying the CustomsTariff, as well as other provisions governing  trade related fields."
Article 2 b) of Regulation
b) ‘produced goods’ includes goods grown, manufactured and
mined;WT/ACC/807/26
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15.2 In this Agreement:
(a) "identical goods" means goods which are the same in all
respects, including physical characteristics, quality andreputation.  Minor differences in appearance would notpreclude goods otherwise conforming to the definitionfrom being regarded as identical;
(b) "similar goods" means goods which, although not alike
in all respects, have like characteristics and likecomponent materials which enable them to performthe same functions and to be commerciallyinterchangeable.  The quality of the goods, theirreputation and the existence of a trademark are among
the factors to be considered in determining whether
goods are similar;
(c) the terms "identical goods" and "similar goods" do not
include, as the case may be, goods which incorporateor reflect engineering, development, artwork, design
work, and plans and sketches for which no adjustment
has been made under  paragraph 1(b)(iv) of Article 8because such elements were undertaken in the countryof importation;
(d) goods shall not be regarded as "identical goods" or
"similar goods" unless they were produced in the same
country as the goods being valued;
(e) goods produced by a different person shall be taken
into account only when there are no identical goods orsimilar goods, as the case may be, produced by thesame person as the goods being valued.Article 2 of Regulation
c) ‘identical goods’ means goods produced in the same country
which are the same in all respects, including physicalcharacteristics, quality and reputation. Minor differences inappearance shall not preclude goods otherwise conforming tothe definition from being regarded as identical;
d) ‘similar goods’ means goods produced in the same country
which, although not alike in all respects, have likecharacteristics and like component materials which enablethem to perform the same functions and to be commerciallyinterchangeable. The quality of the goods, their reputation and
the existence of a trademark are among the factors to be
considered in determining whether goods are similar;
(2) ‘Identical goods’ and ‘similar goods’, as the case may be, do
not include goods which incorporate or reflect engineering,
development, artwork, design work, and plans and sketches
for which no adjustment has been made under Article 36 (1)b) 4. of the Customs Code because such elements wereundertaken in the Republic of Macedonia.
Article 10, Paragraph 1  of Regulation
(1) In applying Article 30 and 31 of the Customs Code, a
transaction value for goods produced by a different personshall be taken into account only when no transaction valuecan be found for identical or similar goods produced by thesame person as the goods being valued.
15.3 In this Agreement "goods of the same class or kind" means
goods which fall within a group or range of goods producedby a particular industry or industry sector, and includesidentical or similar goods.Article 2, Paragraph 1  of Regulation
e) ‘goods of the same class or kind’ means goods which fall
within a group or range of goods produced by a particularindustry or industry sector, and includes identical or similargoods.WT/ACC/807/26
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15.4 For the purposes of this Agreement, persons shall be deemed
to be related only if:(a) they are officers or directors of one another's
businesses;
(b) they are legally recognized partners in business;
(c) they are employer and employee;
(d) any person directly or indirectly owns, controls or
holds 5 per cent or more of the outstanding votingstock or shares of both of them;
(e) one of them directly or indirectly controls the other;(f) both of them are directly or indirectly controlled by a
third person;
(g) together they directly or indirectly control a third
person;  or
(h) they are members of the same family.Article 3, Paragraph 1  of Regulation
(1) For the purposes of Articles 28 to 38-h of the Customs Code
and of this Regulation, persons shall be deemed to be relatedonly if:a) they are officers or directors of one another’s
businesses;
b) they are legally recognized partners in business;
c) they are employer and employee;d) any person directly or indirectly owns, controls or
holds 5 % or more of the outstanding voting stock orshares of both of them;
e) one of them directly or indirectly controls the other;
f) both of them are directly or indirectly controlled by a
third person;
g) together they directly or indirectly control a third
person; or
h) they are members of the same family. Persons shall be
deemed to be members of the same family only if they
stand in any of the following relationships to oneanother:
— husband and wife,— parent and child,— brother and sister (whether by whole or half blood),
— grandparent and grandchild,
— uncle or aunt and nephew or niece,— parent-in-law and son-in-law or daughter-in-law,— brother-in-law and sister-in-law.
15.5 Persons who are associated in business with one another in
that one is the sole agent, sole distributor or soleconcessionaire, however described, of the other shall bedeemed to be related for the purposes of this Agreement ifthey fall within the criteria of paragraph 4.Article 3, Paragraph 2  of Regulation
(2) Persons who are associated in business with one another in
that one is the sole agent, sole distributor or soleconcessionaire, however described, of the other shall bedeemed to be related only if they fall within the criteria ofparagraph 1.WT/ACC/807/26
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Article 16
Upon written request, the importer shall have the right to an
explanation in writing from the customs administration of thecountry of importation as to how the customs value of the importer’sgoods was determined.Article 38e, Paragraph 4  of CL
(4) Upon written request, the importer shall have the right to an
explanation in writing from the customs authority of thecountry of importation as to how the customs value of theimporter's goods was determined.
Article 17
Nothing in this Agreement shall be construed as restricting or calling
into question the rights of customs administrations to satisfy
themselves as to the truth or accuracy of any statement, document ordeclaration presented for customs valuation purposes.Article 38e, Paragraph 2  of CL
(2) No one provision of Article 28 to 38-h shall be construed as
restricting or calling into question the rights of customs
authority to satisfy themselves as to the truth or accuracy ofany statement, document or declaration presented for customsvaluation purposes.
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