RESTRICTED
WORLD TRADE WT/ACC/ALB/23
4August 1997
ORGANIZATION(97-3294)
Working Party ontheAccession ofAlbania Original: English
ACCESSION OFALBANIA
Additional Questions andReplies
ThefollowingadditionalrepliestoquestionsraisedbymembersafterthemeetingoftheWorking
Party havebeenreceived fromtheMinistry ofIndustry, Transport andTrade oftheRepublic ofAlbania
withtherequest thattheybecirculated tomembers oftheWorking Party. Thequestions andreplies
arereproduced hereunder.
_______________WT/ACC/ALB/23
Pagei
TABLE OFCONTENTS
Page
No.Question
No.
II. ECONOMY, ECONOMIC POLICES AND FOREIGN
TRADE
2. Economic Policies
(a) Main directions ofongoing economic policies 1 1
(b) Monetary andfiscal policies 2 2-5
(d) Foreign anddomestic investment policies 3 6-8
(e) Competition policies 4 9
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting 4 10-11
(b) Characteristics ofnational tariff 5 12-14
(e) Quantitative import restrictions, including prohibitions, quotas
andlicensing systems6 15
(f) Import licensing procedures 7 16-21
(h) Customs valuation 9 22-31
(j) Pre-shipment inspection 11 32
(k) Application ofinternal taxes onimports 12 33-37
(m-o) Anti-dumping andcountervailing dutymeasures 16 38
2. Export Regulation
(b) Customs tariff nomenclature, types ofduties, etc. 16 39
(c) Quantitative export restrictions 16 40-42
(d) Export licensing procedures 17 43
(f) Export financing, subsidy andpromotion policies 17 44
3. Internal Policies Affecting Foreign Trade inGoods
(b) Technical regulations andstandards 18 45-54
(c) Sanitary andphytosanitary measures 21 55
(e) State-trading practices 21 56-64
(l) Government procurement practices 23 65-78
4. Policies Affecting Foreign Trade inAgricultural Products
(a) Imports 27 79
(b) Exports 27 80-82
(e) Internal policies 28 83-84
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy 30 85-86WT/ACC/ALB/23
Pageii
Page
No.Question
No.
2. Substantive Standards ofProtection
(a) Copyright andrelated rights 31 87-91
(b) Trademarks, including service marks 35 92-96
(d) Industrial designs 37 97
(e) Patents 37 98-103
(g) Layout designs ofintegrated circuits 39 104-105
(h) Requirements onundisclosed information, including trade
secrets andtestdata40 106-107
4. Enforcement 41 108-109
VI. TRADE-RELATED SERVICES REGIME
Professional services 41 110
Financial services
- Banking 42 111-119
- Investment 45 120
Telecommunications 46 121
Transport services 46 122
Tourism 46 123WT/ACC/ALB/23
Page1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions ofongoing economic policies
Question 1.
Please provide anup-to-date account ofprogress inprivatization.
Answer:
Material onanup-to-date account ofprogress intheprivatization hasbeenprovided bythe
Albanian delegation during thesecond meeting withtheWorking Party on29October 1996.
During thesecond halfof1996privatization inAlbania continued, butnotwiththesamespeed
asinprevious years. Theprocess wasslowed down because ofelections which tookplace inMayand
October 1996 andalsobecause oftheestablishment oftheMinistry ofPrivatization. Anyway, there
wasalotdoneontheaspect ofchanging andimproving thelegalframework onprivatization. So,during
thelastmonths oftheyearanumber ofGovernment Decrees were passed:
- 11November 1996, Decision oftheCouncil ofMinisters No.758"Onthemain procedures
oftheprivatization ofstrategic companies";
- 11November 1996, Decision oftheCouncil ofMinisters No759"Onprivatization ofState
enterprises transformed intocommercial companies";
- 11November1996,DecisionoftheCouncilofMinistersNo.760"Onprivatizationofpackages
ofshares ofcommercial companies".
Implementing theDecision oftheCouncil ofMinisters No.760,theNational Agency for
Privatization from 15January till3March 1997 published thepackages ofshares of15commercial
companies.
Some ofthese companies werepartly privatized through mass privatization andtheresidual
share wasgoing tobeprivatized according tothisDecision oftheCouncil ofMinisters. Thepackages
ofshares ofthecompanies which werepublished forthefirsttimeforprivatization, suchasCement
Factory inElbasan, theBeverage Factory inDurres, etc.seemed veryattractive fortheinvestors. The
auctions wererunbytheauction commissions appointed inaccordance withtheprinciples setinthe
Decision oftheCouncil ofMinisters headed bytherepresentative oftheNational Agency for
Privatization. From 15companies, 11ofthem were privatized. Theproceeds from theprivatization
ofthese companies were lek764million and1,35billion privatization vouchers.
Thenewmethod applied fortheprivatization ofStateresidual share andfortheprivatization
ofalarge stake inthecompanies proved thatitwasveryattractive notonlyfordomestic investors
butforforeign investors aswell. Thesuccess ismostevident considering thefactthattheprivatization
ofthese companies wasruninaveryhardsituation forAlbania.
TheNational Agency forPrivatization andtheMinistry ofPrivatization arecooperating to
reorganise theprivatization process inorder togiveapositive impact tothisveryimportant process
ofeconomic reform.WT/ACC/ALB/23
Page2
(b) Monetary andfiscal policies
Question 2.
Please giveanupdate onAlbania 'sprice controls, ifanyremain.
Please provide details onthescope andoperation oftheregulatory control ofthecommodities
where control remains.
Does theGovernment ofAlbania plantoeliminate these controls inthefuture? Ifso,isthere
atimetable forelimination?
Answer:
Thepricecontrol isbeing abolished stepbystep.Inthisprocess inJuly1996thepricecontrol
onflourandbread wasabolished. Actually theprice control remains onlyonmedicines andonsome
services suchastelecommunications, energy andwater supply services.
Theprivatization ofthese sectors isaongoing process, which willbeaccompanied bythe
abolishment ofsuchprice controls.
Question 3.
Hasaspecific timetable been setfortheliberalization ofenergy prices?
Answer:
TheAlbanian Government isworking onthepreparation oflong-term andshort-term strategies
fortheenergy sector. Based onthese, theprivatization process ofthissector aswellastheliberalization
ofenergy prices willbeundertaken. Wewillinform Working Party ofanyother developments inthis
issue.
LawNo.7545 "OnProfit Tax" (WT/ACC/ALB/10, page 10,paragraph 30)
Question 4.
Arethetaxexemptions andreductions provided forinthelawgenerally available, orrather
targeted tocertain sectors and/or geographical areas? Dothey apply toboth nationals and
foreigners?
Answer:
Thetaxexemptions andreductions which areprovided forinLawNo.7545"OnProfit Tax"
aretargeted tocertain sectors and/or geographical areas, buttheyapply tobothnationals andforeigners.WT/ACC/ALB/23
Page3
Law"OnPersonal Income Tax" (WT/ACC/ALB/10, page 11,paragraph 32)
Question 5.
CanAlbania please state whether exemptions areapplied withnodiscrimination ongrounds of
nationality andwhether theyaregenerally available ortargeted tosectors and/or geographical
areas?
Answer:
According totheAlbanian Law"OnPersonal Income Tax"non-Albanians residing inAlbania
(whoarepresent inAlbania more than183daysinataxyear) mustpaytaxes onincome which derives
from activity carried out,capital invested, goods produced andservices provided within Albania.
Individuals employed byorganizations having aGovernment International Agreement arenotsubject
toincome tax.
(d) Foreign anddomestic investment policies
Question 6.
Insection II.37. ofdocument WT/ACC/ALB/10 itisstated that"fair andequitable treatment"
isprovided forforeign investors under LawNo.7764 "OnForeign Investment". Does itmean
thatnational treatment andmost-favoured nation treatment aretobeaccorded forforeign direct
investment?
Answer:
Asithasbeenmentioned inthedocumentation provided bytheAlbanian Government tothe
Working Party, LawNo.7764 "OnForeign Investment" provides toforeign investors equitable and
fairtreatment. Thismeans that,except theright tobuyagricultural landwhich isprovided onlyto
Albanian nationals, national treatment andmost-favoured-nation treatment aretobeaccorded forforeign
direct investment.
Question 7.
Insection II.37 ofdocument WT/ACC/ALB/10 itisstated that"theright toimpartial dispute
settlement" isprovided forforeign investors under LawNo.7764"OnForeign Investment". Does
Albania have relevant appeal procedures domestically aswell?
Answer:
Yes.Article 8,(points 1and2)ofLawNo.7764 "OnForeign Investment" provides forthe
rightofimpartial dispute settlement. According tothisarticle, foreign investors havetherighttochoose
thedomestic appeal procedures aswellasinternational procedures.
Question 8.
Inthelawonbuying agricultural landreference ismade to"certain conditions". Canforeigners
buyagricultural land?WT/ACC/ALB/23
Page4
Answer:
Foreigners canincertain conditions lease agricultural landupto99years, buttheycannot
buyagricultural landinAlbania.
(e) Competition policies (WT/ACC/ALB/10)
Question 9.
Could Albania please state whether andinwhich form reorganisation plans provided forin
Chapter IIIofLawNo.8017 "For Bankruptcy Procedures" involve, directly orindirectly, any
financial support from theState?
Answer:
Thereorganization plans provided forinChapter IIIoftheLawdoesnotinvolve anydirect
orindirect financial support from theState.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(a) Registration requirements forengaging inimporting
Question 10.
LawNo.7638, "OnCommercial Companies" (WT/ACC/ALB/10, page 3,paragraph 6)dated
19November 1992. Limited liability companies must meet certain requirements. Dothese
requirements apply equally toforeign-owned companies andnationally-owned companies. Can
allcompanies engage ininternational trade? Under what conditions?
Answer:
These requirements areequally applied toforeign-owned companies andnationally-owned
companies.BasedonAlbanianlegislationallcompaniescanengageininternationaltrade.Theconditions
arestipulated intherespective law.
Question 11.
LawonChamber ofCommerce (point 11,WT/ACC/ALB/10). Reference ismade to"registered
traders" and"registered foreign trade representatives". Please givetherequirements thatmust
bemet.
Answer:
Therequirements thatmust bemetareasfollows.
Therequest directed totheCourt ofthefirstinstance forregistration ofCommercial Companies
hastobedonebyallthepartners ofaGeneral Partnerships Company, byallpartners ofaLimited
Partnerships Company, byalladministrators ofanLimited Liability Company orbyallmembers of
theboard ofdirectors ofthePublic Company.WT/ACC/ALB/23
Page5
Thelawdefines some general requirements suchastheobligation todeclare andregister the
typeandterms ofcompany 'sactivity (ifitisdefined), theofficial trade name, theheadquarters, the
object ofthecompany, theamount ofbasic assets, thesigned dateofstatute.
Different types ofcompanies, havesome additional requirements, suchasfollows:
(a) forGeneral Partnership Companies; theinformation onthepartners, including theirnames
andsurnames, theirdates andplaces ofbirth, aswellastheprovisions ofthestatute, which
defines therepresentative duties ofadministrators;
(b) forLimited Partnerships Company; alltheinformation required onpoint (a)andthequality
as"limited" partner, buttheamounts ofcontributions of"limited" partners alsohavetobe
given;
(c) forLimited Liability Companies thenames, surnames, birthdays andplaces ofbirth of
administrators andtheprovisions ofthestatute which defines therepresentative duties of
administrators must begiven;
(d) forPublic Companies thenames, surnames, dates andplaces ofbirthofthemembers ofthe
board ofdirectors, andalsothestatute provisions which defines therepresentative duties of
board ofdirectors 'members must begiven.
Thefollowing must alsobeincluded inthisrequest: thestatute, firms, andthenomination
actofadministrators orboard ofdirectors members, alistwhich include names, surnames, places and
dates ofbirthofthesupervision council members, andinthecaseofnatural assets contributions the
report forthese contributions, or,ifnecessary, thedecision ofthepartners fornotasking theexpert 's
helpforthese contributions.
Therequests forsuchregistration havetobeaccompanied, inthecaseofLimited Liability
Companies andPublic Companies, withthecertificate ofthefunds depositor, which results fromthe
reimbursement ofthebasic partoftheassets, orfrom signing shares forcashcontribution.
Incases when running anactivity (included inthesubject ofthecompany) anofficial
authorization isrequired, anotified copyofthisauthorization willbenecessary forregistration.
Thecompany willberegistered when itsstatute isinaccordance withthelawandwhen all
documents required bythelawarefulfilled.
Thelawalsodefines thattheseprovisions areequally applied forAlbanian andforeign persons
establishing abranch orrepresentative office inAlbania.
(b) Characteristics ofnational tariff
Question 12.
Section II.39. (WT/ACC/ALB/10) -LawNo.7609 "OnCustoms Tariffs": Onwhich products
doesAlbania apply composites rights (duties)?WT/ACC/ALB/23
Page6
Answer:
There arenoproducts onwhich Albania applies composites rights (duties).
Question 13.
HasAlbania completed work onthedraft regulations forthelawoncustoms tariffs? Willthe
regulations beimplemented prior toaccession?
Answer:
Thedraftregulations forthelawoncustoms tariffs arestillunder preparation. Weareworking
torealize theirimplementation within thetimepermitted bytherespective agreement.
Question 14.
Additionally, thisdelegation isinterested inreviewing LawNo.7609. Please provide thislawto
theSecretariat forreview byWorking Party members.
Answer:
AcopyofLawNo.7609 willbeprovided totheSecretariat.
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
Question 15.
LawNo.7609"OnCustoms Tariffs". Thislawappears toprovide information onspecial customs
duties, anti-dumping duties, andcountervailing duties. Intheresponse toquestion 2in
WT/ACC/ALB/8/Add.1, Albania notes thatthecircumstances inwhich special customs duties
canbeimposed have notbeen defined andwillbeaddressed when Albania develops lawsand
implementing regulations forthelawoncustoms tariffs.
Itisimportant thatcriteria forimposing special duties beimplemented inatransparent, nor
arbitrary, manner which isconsistent withWTO rules. Inorder tofullyunderstand thecurrent
system inAlbania, itwould behelpful toprovide member countries withthese draft regulations
assoonaspossible.
Inreply toaquestion ontheCustoms Code (Question 4,WT/ACC/ALB/3) Albania states that
special customs duties willbeapplied toprevent unjust competition. What constitutes unjust
competition under Albanian law?
Answer:
Albania isstillinthephase ofpreparation ofthelegislation dealing withanti-dumping and
countervailing duties. Once thedraftregulations areready theywillbeprovided forcomments.WT/ACC/ALB/23
Page7
(f) Import licensing procedures (WT/ACC/ALB/18 andWT/ACC/ALB/19)
Question 16.
Albania doesnotmaintain, asgeneral rule, licensing procedures fortheimportation ofgoods.
Formore details please refer todocument WT/ACC/ALB/19 anditscomments.
Please listproducts subject toimport licensing byHSlineandgivetheWTO justifications for
each.
Answer:
There areproducts subject toimport licensing (please refer todocument WT/ACC/ALB/3,
page9),butthere isnolistofsuchproducts byHSlineavailable. Theproducts subject toimport
licensing aretheproducts which retain health andenvironmental matters.
Thefewimport licensing procedures thatdoexist, apply toproducts which aresubject to
procedural control, inorder toensure thattheydonotpresent arisktothehealth orsafety ofthe
population.
Question 17.
Please confirm thatthere arenoquotas onimports ofliveanimals, seeds andmedicines/drugs.
Answer:
There arenoquotas onimports ofliveanimals, seeds andmedicines/drugs.
Question 18.
Canalicence beobtained atshort notice, forexample, inthecaseofgoods arriving ataport
without alicence?
Answer:
Alicence cannot beobtained atshort notice, forexample, inthecaseofgoods arriving ata
portwithout licence.
Question 19.
What conditions areattached totheissuing ofalicence totrade inpharmaceuticals?
Answer:
Formore details onimports andtrade inpharmaceuticals please refertotheconditions given
indocument WT/ACC/ALB/18.WT/ACC/ALB/23
Page8
Question 20.
Could Albania provide more information onthelicensing system forseeds andseedlings, and
confirm thatthesystem isnon-discriminatory?
Answer:
Thelicensing system forseeds andseedlings isnon-discriminatory andoperate inbasisofthe
regulations andconditions referred tothedocument WT/ACC/ALB/19.
Question 21.
I. Outline ofsystems concerning therequirement thatimported medicines anddrugs must
have animport licence:
Arethese automatic ornon-automatic licences? Ifautomatic, please indicate thetimeframe within
which theymust begranted. Ifnon-automatic, please describe indetail thecriteria thatthe
imported medicines anddrugs must meet toqualify forthelicence. Is"verification" theonly
criterion? What is"verified"?
Does Albania have asimilar registration andlicensing system inplace forthesales ofdomestic
production ofsimilar articles? Towhat extent aretherequirements listed inWT/ACC/ALB/18
applied todomestic production ofsimilar goods andhowisthisdone?
Why hasAlbania notincluded material onitsregistration requirements forpesticides in
WT/ACC/ALB/19?
Please answer forpesticides thesame questions asasked above onmedicines anddrugs.
Ministry ofAgriculture andFood -liveanimals
Albania states thattheMinistry ofAgriculture andFood isincharge oforganizing thelicensing
procedures forimport andexport ofliveanimals andforimports ofseeds andseedlings.
Isthelicensing onliveanimals statistical orrestrictive licensing?
Albania states that"bydecision oftheCentral Commission ofImprovement ofRace (CIOR) the
applicants aregiven therequested "permission" onthebaseofwhich theAlbanian Veterinary
Service issues thelicence forimport/export oftherequested materials"
What criteria must bemettoobtain "permission"? If"permission" isdenied howmayapplicants
appeal thedecision?
Seeds andseedlings
Albania states thatiftherequested varieties forimport arenotincluded intherespective Albanian
catalogue, butfrom acountry oftheEuropean Communities, theimportation maybeallowed,
onlyafter theapproval oftheministry ofAgriculture andFood ontherequest oftheState Entity
ofSeeds andSeedlings (SESS).WT/ACC/ALB/23
Page9
Thestatement that"importation maybeallowed" implies thatimportation mayalsonotbeallowed.
Theconditions needtobemetinorder forseeds tobeimported? When andonwhat basis would
importation notbeallowed? Why aretheEuropean Communities singled outforthisspecial
treatment? What would thestatus beforvarieties originating inAsiaorNorth America?
Why would newvarieties ofseeds andseedlings notbeallowed tobeimported?
Answer:
Forallthissetofquestions onimport licensing procedures formedicines, liveanimals, seeds
andseedlings please refertodocument WT/ACC/ALB/18.
(h) Customs valuation (WT/ACC/ALB/8/Add.1 andWT/ACC/ALB/16)
Question 22.
WillAlbania modify Article 5(3)ofitsLawonCustoms Valuation tobring itintolinewiththe
correspondingArticle1(2)(b)oftheWTOAgreementandtoincorporateitsrespectiveInterpretative
Note?
Answer:
Yes.Albania isworking onthepreparation oftheInterpretative Notes ofCustoms Valuation.
Once thedraftisready itwillbeprovided tomembers forcomments.
Question 23.
WillAlbania modify Article 13,item2ofthislaw,which refers to"building, fitting" instead of
"erection, assembly" inthecorresponding provision intheAgreement?
Answer:
Yes.Albania willmodify theenglish version withtheappropriate words "erection, assembly".
Question 24.
Intheresponse toquestion 1ofWT/ACC/ALB/8/Add.1 Albania states thatminimum prices are
ameasure against "false invoices", i.e.against fraudulent customs valuation declarations.
Does Albania intend toenter areservation under paragraph 2ofAnnex IIIoftheCustoms
Valuation Agreement toenable them toretain minimum values onalimited andtransitional basis?
IsAlbania prepared totakeaccount oftheDecision oftheWTO Valuation Committee which
envisages theuseofsecondary valuation methods (i.e.other thanthe"price" paidforthegoods)
tocombat thepractice ofsuspect offraudulent valuation declarations?WT/ACC/ALB/23
Page10
Answer:
Yes.Albania intends tomake thereservation under paragraph 2ofAnnex IIIoftheCustoms
Valuation Agreement. Asrequired bythisparagraph weareworking onthepreparation oftheterms
andconditions under which weintend toretain theminimum customs value.
Question 25.
Theresponse toquestion 1oftheWT/ACC/ALB/8/Add.1 concerning theuseofminimum import
prices forcustoms valuation states thatminimum import prices forimport valuation areused
primarily tocounter false invoices.
Theuseofminimum import prices isnotconsistent withtheWTO Customs Valuation Agreement,
which listsapproved alternative forms ofvaluation when confronted with, e.g,under invoicing.
HasAlbania corrected thisaspect ofitscustoms valuation regime andbrought itintoconformity
withWTO provisions?
Ifnot,howdoesAlbania intend toproceed tocorrect thepractice prior toaccession?
Answer:
Albaniaintendstomakethereservationunderparagraph2ofAnnexIIIoftheCustomsValuation
Agreement toretain theminimum customs values. Once theproposal withterms andconditions of
suchreservation isready itwillbeprovided.
Question 26.
With reference tothestatement under question 13inWT/ACC/ALB/16, please giveastatus report
onAlbania 'sefforts toincorporate theInterpretative Notes oftheWTO Customs Valuation
Agreement initscustoms valuation laws.
Answer:
TheInterpretative Notes oftheWTO Customs Valuation Agreement willbeincorporated in
theimplementingregulationsoftheLawOnCustomsValuation.Albaniaisworkingontheirpreparation.
Question 27.
Intheresponse toquestion 34ofWT/ACC/ALB/8/Add.6, Albania notes thatithasprepared a
draft Customs Valuation Lawthataddresses theissue ofvaluation onthebasis oftransaction
value.
What istherelationship ofthisdraft lawtoAlbania 'sCustoms Code of1992, LawNo.7609"On
Customs Tariffs" asamended in1995.
Answer:
TheLaw"OnCustoms Valuation" intends tocomplete Article 17ofLawNo.7609, dated
22September 1992"OnCustoms Tariffs". According toArticle 17oftheabove-mentioned Law, theWT/ACC/ALB/23
Page11
customs value isbased onthetransaction value, astheLawonCustoms Valuation defines therespective
methods indefining thetransaction value.
Question 28.
Isthedraft LawontheCustoms Valuation approved bytheParliament ?
Answer:
Yes.LawNo.8187 "OntheCustoms Valuation" wasapproved bytheAlbanian Parliament
on23January 1997.
Question 29.
AreArticles 1.2(b), 5.2and6.2oftheAgreement ofentering intooperation ofArticle VIIof
GATT 1994 inforce?
Answer:
Albania isworking onthepreparation oftheimplementing rules oftheCustoms Valuation
Law. Their preparation willbebased ontheArticle VIIoftherespective WTO Agreement
Question 30.
When andwhere willtheexchange rates bepublished asrequested byArticle 9.1oftheWTO
Agreement onCustoms Valuation?
Answer:
Asrequired byArticle 9.1oftheWTO Agreement onCustoms Valuation theexchange rates
willbepublished ondaily basis bytheBank ofAlbania.
Question 31.
Inwhat manner aretheInterpretation Notes oftheAgreement included intherespective Albanian
legislation?
Answer:
TheInterpretative Notes oftheAgreement willbeincluded intheimplementing regulations
oftheCustoms Valuation Law. Albania isworking ontheirpreparation.
(j) Pre-shipment inspection
Question 32.
With regard topre-shipment inspection inAlbania, whoconducts theinspection, Albanian customs
officials oranagent ofthegovernment?WT/ACC/ALB/23
Page12
Willimporters beabletoeasily access allapplicable lawsandregulations related topre-shipment
inspection activities?
Answer:
Albania hasunder consideration thepreparation oflegislation onpre-shipment inspection, but
thework onthisissue hasnotbegan. Theaccess ofanimporter toallapplicable lawsandregulations
willbeincluded intheabove-mentioned legislation.
(k) Application ofinternal taxes onimports
Question 33.
Concerning LawNo.8083"ForSome Changes toLawNo.7547anditsAmendments "OnExcise
Taxes intheRepublic ofAlbania" (page 5,paragraph 29),could Albania please listthealcoholic
drinks which aresubject totheincreased rates ofexcise duties?
Answer:
ThePresidential Decree No.1588, dated 3September 1996 defines thecommodities subject
toexcise taxaswellastheirpercentages.
Thelistofalcoholic drinks according tothedecree isasfollows:
Commodities Percentage excise
%
Alcoholic Drinks
Beer
- domestic 40
- imported 65
Wine
- domestic 40
- imported 65
Raki
- domestic 70
- imported 95
Brandy, rumandother imported alcoholic drinks 105
Imported liquors 85
Ethylic Alcohol withconcentration 95.5-96% volusedforthe
production ofalcoholic drinks asbrandies, liquors, etc.
- domestic 85
- imported 110
Ethylic Alcohol made bygrape withconcentration 68-70% volused
forproduction ofalcoholic drinks80WT/ACC/ALB/23
Page13
Theexcisetaxfornaturalandjuridicalpersons,Albaniansandforeigners,whoproducealcoholic
drinks forexport willbereimbursed fortherespective quantity ofexported alcoholic drinks atthe
moment ofexportation.
Question 34.
Intheresponse toquestion 1inWT/ACC/ALB/8/Add.3, Albania acknowledges thatitistaking
steps toaddress thedifferential excise taxonimports anddomestic products. Theinformation
inresponse toquestion 2and thedescription ofLaw No.8083 of7March 1996 in
WT/ACC/ALB/10, however, indicates thatinarecent revision ofAlbania 'sexcise taxes,
discriminatory taxes were noteliminated, andinsome cases itappears thatnewdiscrimination
taxes were applied orthemargin ofdiscrimination increased.
Please explain precisely thesteps Albania istaking toequalize theexcise taxofimported and
domestic products prior toaccession, andthetimetable Albania hasfortaking suchmeasures.
Albania should make acomprehensive report totheWorking Party on:(a)thescope, leveland
thestatus ofitscurrent excise taxes, listing theproducts subject tothese taxes byproduct and
HSnumber; (b)specific stepsAlbania istaking toeliminate discrimination against imported items
interms oftheleveloftaxapplied; and(c)Albania 'splans toeliminate thetaxleveldifferences
among various distilled alcoholic beverages inconformity withrecent dispute settlement decisions.
Answer:
Albania hasunder consideration theamendment ofthelawonexcise taxandweareworking
onthisissue.
Question 35.
Thefurther implementation ofdiscriminatory taxes during Albania 'saccession isworrisome
development andonlycomplicates thenegotiations. Albania should commit nottoimplement any
further measures inconsistent withtheWTO Agreement during theaccession negotiations.
Answer:
Decree No.1511"ForSome Changes totheLawonExcise Duties intheRepublic ofAlbania",
No.7678 dated 3March 1993, (changed byLawNo.8083, dated 7March 1996 andapproved on
29June1996) defines theapplicable excise taxtocertain commodities asfollows:
Percentage excise (%)
Softdrinks:
- domestic 5
- imported 30
Mineral andcarbonated water:
- domestic 0
- imported 20
Petroleum by-products:
- gasoline withoctane rating 45-89.9:
- domestic 53WT/ACC/ALB/23
Page14
Percentage excise (%)
- imported 60
- Gasoline withoctane rating above 90 50
Diesel:
- domestic 49
- imported 40
- domestic kerosene withliberalized price 16
Foralltypes ofpetroleum by-products notlisted under "Petroleum by-products" anexcise
dutyof100percentwillbeimposed.
Question 36.
Intheresponse toquestion 2ofWT/ACC/ALB/8/Add.3, Albania states thatcommodities needed
forinvestment intourism activities areexempt from import duties andexcise duties when such
commodities arenotfound intherequired quality, quantity andprice inthedomestic market.
Tourism could encompass abroad range ofactivities. Does thisexemption alsoapply tofood
products imported bythehotel/restaurant industry?
How arethese exemptions administered?
Answer:
TheAlbanian Parliament hasapproved theamendment totheLaw"OntheDevelopment of
thePromoted Tourism Activities". Decree No.1609, dated 19September 1996, hasabolished theright
ofpromoted tourism activities tobeexempted fromexcise taxforthecommodities imported bythem.
Question 37.
Taxratedifferentials existfordomestic andimported liquors, ethyl alcohol andkerosene. Please
listanyother products forwhich taxratedifferentials existandgivedetails. How doesAlbania
viewthese differentials interms ofWTO provisions, particularly GATT Article III?Furthermore,
isthesame rateapplied toallimported products?
Answer:
Knowing thenon-conformity oftheexcise taxwithWTO provisions, particularly ofGATT
Article III,Albania isworking toamend it.Theamendment willinclude thesame applied ratetoall
imported products, thesame asthelocalproducts.
Commodities Excise Rate%
1. Tobacco andtobacco production
Cigarettes
- domestic 50
- imported 100
Cigar
- domesticWT/ACC/ALB/23
Page15
Commodities Excise Rate%
- imported 105
Tobacco forconsumption 70
Cigarettes paper forsale 50
2. Softdrinks
- domestic 5
- imported 30
3. Mineral andcarbonated water
- domestic 0
- imported 20
4. Petroleum by-products
RON upto75
- domestic 15
- imported 0
RON over75.1until89.9
- domestic 47
- imported 0
RON upto89.9
- domestic 0
- imported 60
RON over90
- domestic 0
- imported 50
Gasoil
- domestic 20
- imported 40
Valvoline
- domestic 80
- imported 0
Lubricating oilsofallkinds andgreases
- domestic 80
- imported 0
Others; heavy oils(mazut,solar); oilcoke; bitumen; liquid gas;
toluene; sulphur; psylol (ksylol); solvent
- domestic 25
- imported 0
Except kerosene, theimportation ofanyother petroleum by-products notincluded insection 4
willbetaxed with300percentexcise tax.WT/ACC/ALB/23
Page16
Theimported liquid gasanddomestic production ofheavy oils(mazut; solar) usedbythe
population forheating isexempted byexcise tax.
Theimportation ofcigarette papers fortheproduction ofcigarettes isexempted bytheexcise
tax.
(m-o) Anti-dumping andcountervailing dutymeasures
Question 38.
Could Albania please outline itsanti-dumping andcountervailing dutylegislation?
Could italsoplease state howitviews itinterms ofWTO requirements?
Answer:
Albania ispreparing thelegislation onanti-dumping andcountervailing duties. Thispreparation
willbebased ontherequirements oftherespective agreement oftheWTO. Once thedraftisready
itwillbeprovided forcomments.
2. Export Regulation
(b) Customs tariff nomenclature, types ofduties, etc.(WT/ACC/ALB/10)
Question 39.
Section I(B).28. (WT/ACC/ALB/10) Law No.8083 "OnExcise Taxes": This Law includes
modifications ontheexcise tariffs onmany alcoholic drinks andonkerosene, butitdoesnot
mention theabolition ofdiscriminatory tariffs onimported products. Thispractice presents in
factaclear violation ofArticle IIIofGATT 1994. Does Albania foresee tomodify thisLaw?
Does thiscasehasafixed date?
Answer:
Pending.
(c) Quantitative export restrictions (WT/ACC/ALB/8/Add.3 andAdd.9)
Question 40.
What istheWTO justifications formaintaining export prohibitions onwood andwood products
andonmetal waste andscrap ?
Answer:
Exportprohibitionsonwoodandwoodproductsaretemporaryandrelatedtotheimplementation
ofthelawonforestry andtheestablishment oftheresponsible institutions fortheforestry 's
administration, control andservices. Meantime, theexport prohibitions onallkinds ofmetal waste
andscrap aimtoprevent theexportation ofthesecommodities before theprivatization ofalltheindustrial
enterprises isconcluded.WT/ACC/ALB/23
Page17
Question 41.
IsAlbania prepared toconsider converting these prohibitions toexport duties, which would then
bereduced andeventually phased outoveranegotiated period?
Answer:
Albaniahastakenconsiderablestepstoeliminateexportlicensingrequirementsandprohibitions.
Theexport prohibitions onwood, wood products, metal waste andscrap aretemporary measures.
Currently, Albania doesnotintend toconvert these prohibitions intoexport duties.
Question 42.
Concerning document WT/ACC/ALB/8/Add.3 -When Albania willdefinitely takenecessary
measures tocutthediscrimination intheexcise rights?
When Albania willdefinitely cutoffthediscrimination tariffs onthemineralized imported
beverages?
Answer:
Albaniaispreparingtheamendmenttoeliminatetheexcisetax'sdiscrimination.Thisamendment,
which willbeapproved bytheendof1997, aimstoeliminate thediscrimination onallproducts, subject
toexcise tax.
(d) Export licensing procedures
Question 43.
Weappreciate Albania 'sefforts toeliminate export licensing requirements andprohibitions. Please
explain therationale behind export licensing requirements forfirewood andunprocessed wood.
When willthislistofcertain wood products andscrap metals beliberalized, particularly firewood
andunprocessed wood?
Answer:
Theexport prohibitions forfirewood andunprocessed wood aretemporary measures, aiming
toestablish thelegalframework forforestry 'sexploitation andprotection, aswellastheappropriate
institutions. Theexport prohibitions forscrap metals arelinked withtheprivatization process ofthe
industrial enterprises.
(f) Export financing, subsidy andpromotion policies
Question 44.
Atthemoment Albania doesnotapply anyexport subsidy. Does Albania intend toapply export
subsidies inthemedium term?
Answer:
Albania doesnotexclude thepossibility oftheapplication ofexport subsidies inthefuture.WT/ACC/ALB/23
Page18
3. Internal Policies Affecting Foreign Trade inGoods
(b) Technical regulations andstandards (WT/ACC/ALB/15)
Question 45.
Theintroduction states thattechnical rules willbemandatory" butalsothat"standards willbe
voluntary except when theyhave been declared obligatory through law". WillAlbania make a
clear cutdistinction between technical regulations, withwhich compliance ismandatory, and
standards, withwhich compliance isnotmandatory?
Answer:
According toourdraftlawallAlbanian standards willbevoluntary. Inthecaseswhen Albanian
standards willbeused, references inother lawsorfortechnical rules orpartofthem willbecome
mandatory. Thedecision willbetaken byrespective authorities, notbytheDSC (Department of
Standards andCertification).
Question 46.
Albania centralises thefunctions ofstandardization, accreditation andcertification through the
activity ofonebody. Webelieve thataccreditation should beaseparate activity performed by
public orclose-to-public bodies. Standards-making andcertification should alsobeseparate
functions. Inpractice, providing theycanprove thattheyoperate independently andthatthe
standards process isopen, transparent andfreefrom commercial influence, thestandards body
could possibly operate acertification function. However, themarket should alsobeopen toother
third party certification bodies. Thestandards body should beindependent from Government.
Thisisoften donebyaMemorandum ofUnderstanding anddoesnotpreclude Government grants
orrepresentation init.
Does Albania share these views?
Willitorganise standardisation, accreditation andcertification accordingly?
Answer:
According tothedraftlawtheDSCisapublic institution, butindependent fromother public
institutions.ForthetimebeingtheDSCisfinancedbyGovernment,buttheleveloftheStatecontribution
isgoing tobereduced. So,asin1992 theState contribution fortheDSC was100percent, in1996
theDSCreceived only75.5percentfromtheGovernment andtherestof24.5percentwascovered
bytheiractivities incomes. Inthisregard, ourviews arethattheDSCwillbecome, stepby,stepmore
independent institution, fulfilling therequirements oftherespective agreement oftheWTO.
Related tothecertification activities, Albanian draftlawprovides fortheestablishment ofother
bodies, except theDSC tocarry outthecertification activities inAlbania, either forAlbanians or
foreigners.
Currently, thestandardization, accreditation andcertification activities arecovered by
threedepartmentswithintheframeoftheDSC.Theiractivitiesareseparatefromeachother.Certification
Department willoperate asathirdparty. Thestandardization process isandwillremain openinthe
future. Related tothistheAlbanian Government isdrafting adecree "OntheCode ofGood PracticeWT/ACC/ALB/23
Page19
forPreparation, Adoption andApplication ofStandards" asrequired intheAnnex 3oftheWTO
Agreement. Once thedraftisready, acopyofitwillbeprovided tomembers forcomments.
Question 47.
Ingeneral information onstandards provided under thissection Albania states thatAlbanian
standards -called STASH standards -arecompiled by"allinterested parties andapproved by
theStandardization Council attached totheDSC".
Areforeigners eligible toparticipate inthestandards setting process as"interested parties"?
Answer:
Foreigners areeligible aswellasAlbanians toparticipate inthestandards setting process as
"interested parties" intheTechnical Committee orwork-groups. Wehave already started the
implementation ofthisprocess, inwhich some foreign companies areparticipating aswell.
Question 48.
InWT/ACC/ALB/15andintheresponsetoquestion3ofWT/ACC/ALB/8/Add.2Albaniaindicates
thatadraft "Law onStandardization andRelated Activities" provides forthedevelopment and
application of"technical rules" and"standards". Italsoallows third party certification tobe
carried outbyeither public andprivate bodies suchastheDepartment ofStandardization and
Quality (DSC) oraccredited laboratories (Article 8,points 1and5),andthatmandatory
certification shallbecarried outwhen requested byministries andonlyforproducts dealing with
health andsafety.
Please discuss howAlbania intends tosubmit thedraft lawonstandardization andrelated activities
totheSecretariat. When willthislawbesubmitted?
Weseekprompt submission ofthislegislation totheWTO inorder toreview theproposed
procedures inlightofWTO TBT requirements.
Answer:
Adraft ofAlbanian Law"OnStandardization andRelated Activities" wasprovided tothe
Working Party on29October 1996during thescheduled meeting ofAlbanian delegation withWorking
Party (WT/ACC/ALB/20). Regarding theCertification Department, itoperates asathirdindependent
party.
Question 49.
Inpart2(F)AlbaniastatesthatregulationswillaccompanytheLawonStandardizationandRelated
Activities. Albania notes thatinternational standards willbeadopted as"Albanian standards"
provided theyserve theinterests ofthecountry towards thelifting oftechnical barriers intrade
andintroduction.
Please explain theintent ofthisstatement. Specifically, when would international standards not
beusedasbasis forAlbanian standards?WT/ACC/ALB/23
Page20
Answer:
Ourmainattention forthetimebeing isfocused ontheadoption ofregional andinternational
standards (ISO, IEC, EN)asAlbanian standards. Inthisregard, theinternational standards willnot
beusedonlyforsome localproducts, which arenotpartofinternational trade.
Question 50.
What istheexpected length oftimeallowed forpublic comment ondraft standards under the
draft law?
Answer:
Theexpected length oftimeallowed forpublic comment ondraftstandards isnotprovided
underthedraftlaw.ThereisdecreeNo.529adoptedon12December1992oftheAlbanianGovernment,
which provides thetimeallowed forpublic comments. According tothisdecree, theperiod isfrom
three tosixmonths before approval oflegislation andthesame period oftimeafterapproval ofthe
draftlaw.
Question 51.
Thequestionnaire states thatAlbania foresees that"technical rules andstandards willapply to
bothAlbanian andforeign products onanon-discriminatory basis.
Wecommend Albania forunderstanding theimportance ofapplying standards equally between
domestic andforeign products, andweencourage Albania tofollow through thispolicy. Weremind
Albania thattheTBT Agreement andGATT Article IIIrequire thatimports betreated thesame
asdomestic products.
Answer:
Theclause ofnational treatment isprovided inthedraftlawonstandardization andrelated
activities. Article 3oftheAlbanian lawdefines thesametreatment forimported anddomestic products.
Question 52.
Please clarify themeaning of"sub-national authorities" insection 2(f)ofthedocument
WT/ACC/ALB/15. Ifthismeans localgovernments, itshould bereplaced by"local governments".
Answer:
The"sub-national authorities" insection 2(f)ofdocument WT/ACC/ALB/15 means thelocal
governments.
Question 53.
What thelegal framework treating therespective questions ontechnical barriers totrade
(WT/ACC/ALB/15) willbeapplied?WT/ACC/ALB/23
Page21
Answer:
Thelegalframework treating therespective questions ontechnical barriers totrade includes
adraftlawonstandardization. Thelawiswaiting tobeapproved bytheAlbanian Parliament. (Acopy
ofthedraftlawhasbeensubmitted toWTO Secretariat. WT/ACC/ALB/20)
Question 54.
Inwhat stage arethemeasures andthedispositions formaking possible thenational and
international authorities torapidly communicate theinformation ontheir projects?
Answer:
Thedraftlawonstandardization includes provisions ontheways ofrapid communications
withnational andinternational authorities, formaking theirparticipation intheprojects possible .
(c) Sanitary andphytosanitary measures
Question 55.
Insection III.4. ofdocument WT/ACC/ALB/18 itisstated that"The registration ofadrug is
valid forfiveyears". Does itmeans thattheregistration ofadrugmust bemade (renewed) every
fiveyears? Ifso,what isthereason orrationale forthissystem?
Answer:
Yes.Theregistration ofadrugmustbemade (renewed) every fiveyears. Thereason orrationale
forthissystem isthatlocalimporters should anyhow consult withtherespective authorities forthe
continuation ofimports ofthematerials ofthisfield.
(e) State-trading practices (WT/ACC/ALB/8/Add.7 andWT/ACC/ALB/13 andAdd.1)
Question 56.
Does Albania consider thatanyoftheenterprises listed inWT/ACC/ALB/13 should benotified
under Article XVII oftheGATT 1994?
Answer:
Albania doesnotconsider thatanyoftheenterprises listed inWT/ACC/ALB/13 should be
notified under Article XVII oftheGATT 1994.
Question 57.
Areanyoftheenterprises listed subject toanyform ofGovernment control, including directives
inrelation totheir operation?
Answer:
NoneoftheenterpriseslistedaresubjecttoanyformofGovernmentcontrol,includingdirectives
inrelation totheiroperation.WT/ACC/ALB/23
Page22
Question 58.
Arealltheenterprises listed freetopurchase andsellgoods ontheinternational markets and
toacquire imports from anyorigin?
Answer:
Yes,alltheenterprises listed arefreetopurchase andsellgoods ontheinternational markets
andtoacquire imports from anyorigin.
Question 59.
Arethepersons working fortheenterprises listed tobeGovernment employees?
Answer:
Thepersons working fortheenterprises listed aretobeconsidered Government employees
onlybecause theenterprises areState-owned
Question 60.
Does Albania consider thatthere areanyenterprises which fallwithin thescope ofArticle VIII
oftheGATS?
Answer:
Albania doesnotconsider thatthereareenterprises which fallwithin thescope ofArticle VIII
oftheGATS.
Question 61.
InWT/ACC/ALB/8/Add.7andWT/ACC/ALB/13,Albaniareportedthat78percentofitsimports
aregenerated byprivately owned firms andthatmost oftheremainder isimported byState
enterprise fortheir ownconsumption.
Answer:
Please, consider theanswers oftheabove questions onState-trading enterprises.
Question 62.
Please describe thenature ofthisconsumption. Areanyofthese firms manufacturing enterprises?
What sortofState firms account forthistrade? AreState firms importing fortheirownusesubject
totaxes andtariffs onthattrade?
Answer:
Stateenterprises mayproduce, manufacture, sellandbuywithout anylimitation (please, refer
totheLawonState Enterprises, document WT/ACC/ALB/22).WT/ACC/ALB/23
Page23
Inourcase, aState enterprise mayimport fortheirownusedifferent materials, which will
serve asrawmaterial fortheproduction ofthisenterprise. Forexample, oneState enterprise which
produces different mechanical parts imports metal sheet andother materials, which afterprocessing
intheenterprise areready made products. Inthiscasenoexemption fromanycustoms duties orother
facilities areapplied fortheState enterprise.
Question 63.
Please describe theproducts exported byState-owned enterprises, i.e.the21percentofexports
thatarenotaccounted forbytheprivate sector.
Answer:
Fortheanswer tothisquestion wewould liketomention onlysome ofthemain extracting
Stateenterprises inthefieldofminerals suchaschromium ore,copper, etc.These products arepart
of21percentofexports thatarenotaccounted forbytheprivate sector.
Question 64.
Please describe inmore detail theroleofagroexport inthetrade andinternal distribution of
agricultural products inAlbania.
Answer:
Wewould liketoclarify thatagroexport inthetrade andinternal distribution ofagricultural
products doesnothaveanyadvantage orprivileges overtheother State-trading enterprises (formore
details please refertotheLawonState Enterprises, WT/ACC/ALB/22).
(l) Government procurement practices (WT/ACC/ALB/8)
Question 65.
Does Albania intend tojointheGovernment Procurement Agreement? Ifnot,why?
Answer:
Yes.Albania willconsider joining intheGovernment Procurement Agreement induetime.
Question 66.
Does theAlbanian Government collect statistics onprocurement?
Answer:
Thepreparation ofanamendment tothePublic Procurement Lawtoprovide thecollection
ofprocurement statistics isunder consideration.
Question 67.
What istheoverall value ofpublic sector purchasing inAlbania?WT/ACC/ALB/23
Page24
Answer:
Theoverall value ofpublic sector purchasing inAlbania for1996isabout US$365,8 million.
Thisamount counts about 13percentoftheGDP.
Question 68.
Could thegovernment provide abreakdown ofthepublic procurement market bothbycontracting
entity andproduct type?
Answer:
Currently theGovernment ofAlbania could notprovide abreakdown ofthepublic procurement
market. Thiswould bepossible onlywhen thelawwould provide thecollection ofstatistics on
procurement.
Question 69.
According toArticle 9ofthe"Public Procurement Law" nodiscrimination isallowed onthebasis
ofnationality. Doesthismean thatallforeign suppliers getthesame treatment asnational suppliers
when participating intenders ?
Answer:
Albanian Public Procurement Lawstates thatnosupplier shallbeexcluded fromparticipation
inpublic procurement onthebasis ofnationality, including thecountry oforigin oftheirproducts.
Thereby, procurement proceedings areopenforalltenderers onequal terms, regardless ofnationality,
typeofownership andjuridical form. National treatment means thataforeign supplier, foreign products
orservices must betreated nolessfavourably thandomestic suppliers andproducts.
Question 70.
Isthere anoffset policy and,ifso,howoften areoffset arrangements negotiated onacase-by-case
basis?
Answer:
There isnoanoffset policy oranyother offset arrangements negotiated onacase-by-case basis.
Question 71.
Does Albania 'sprocurement lawmake provision forasystem ofdomestic andprice preferences?
Arethese mandatory oroptional?
How, precisely, dotheyoperate?
How aretheymanaged?WT/ACC/ALB/23
Page25
Answer:
Albania 'sprocurement lawdoes notmake provision forasystem ofdomestic andprice
preferences, therefore there arenomandatory oroptional price preferences.
Question 72.
Does apolicy tosupport local industry existinAlbania?
Answer:
Albaniadoesnotmaintainpoliciestosupportlocalindustriesrelatedtogovernmentprocurement.
Question 73.
Istheprocurement ofcertain products reserved forlocal industry?
Ifso,isalistofthese products available?
Answer:
Theprocurement does notprovide thereservation ofcertain products oflocal industry,
consequently there arenolistsofcertain products reserved forlocalindustry.
Question 74.
Does Albania haveanytrade agreements withother countries which cover public procurement?
Ifso,which countries?
Answer:
Albaniadoesnothaveanytradeagreementswithothercountrieswhichcoverpublicprocurement.
Question 75.
Albania 'sLawonpublic procurement doesnotappear toaddress theissue ofadequate challenge
procedures. According totheinformation provided, decisions ofthePublic Procurement Agency
arefinal andnotsubject tocontrol through thenational courts. Thissituation causes difficulty
because, evenifforeign firms areallowed toparticipate inthetendering process, theycannot
enforce their rights.
- IsAlbania prepared tomodify itslawtoprovide forsuchcontrol?
Answer:
Article 43oftheAlbanian Public Procurement Lawdefines thatinacasewhen atenderer is
notsatisfied withthedecision bytheprocuring entity, orthedecision isnotmade within thetimelimit,
thecandidate isentitled tochallenge thedecision andfilethecomplaint withthePublic Procurement
Agency.WT/ACC/ALB/23
Page26
Among theimportant remedies, thePublic Procurement Agency maydecide on,thefollowing
should, insummary, beobserved:
- prohibit theprocuring entity toactordecide unlawfully, orfrom following anunlawful
procedure (article 45);
- annul, inwhole orinpart,anunlawful decision oftheprocuring entity except foranaward
ofcontract decision already made byaprocuring entity (article 45);
- thedecision oftheAgency isfinalandnotsubject tocontrol through thecourts (article 45).
TheAlbanian Government isworking toamend theexisting lawonpublic procurement in
providing theright forfurther appeal. When thedraftamendment isready, itwillbeprovided for
comments.
Question 76.
Intheanswer toquestion 5ofdocument WT/ACC/ALB/8 itisstated that"open tendering isthe
typeofprocedures mainly addressed tolocal companies, butitallows theparticipation ofother
companies aswell, despite their nationality" under thenewprocurement law.Does itmean that
procedures andrequirements which aredifferent from those fornational firms areapplied to
foreign firms, i.e.national treatment isnotaccorded toforeign firms? Ifso,what arethe
procedures andrequirements forforeign firms?
Itappears thatforeign firms participating insuchopen tendering arenotdiscriminated against
onthebasis ofnationality, i.e.non-discriminatory treatment isaccorded tothem. Isthisthecase?
Answer:
According toLawNo.7971"OnPublic Procurement" adopted on26July1995, participation
requirements andprocedures ofthecompanies inopentendering areequal either fornational companies,
orforforeign companies. InArticle 9ofthesaidlawitisstated that"physical orjuridical persons
shallnotbeexcluded fromparticipation inpublic procurement procedures prescribed intheAlbanian
Procurement Law.
Question 77.
Ifprocurement methods other thanopentendering aretobeused, istheabove-mentioned principle
ofnational treatment andnon-discriminatory treatment applied toforeign firms?
Answer:
Theabove-mentioned article doesnotrefertoanyspecial procurement procedures, itisapplied
foropentendering procedures, aswellasforalltypes ofprocurement procedures prescribed inthe
Albanian Procurement Law.
Question 78.
Wecommend Albania foritsprogress inimproving thetransparency andaccess ofitsgovernment
procurement rules. Welookforward toAlbania 'sapplication formembership intheAgreement
onGovernment Procurement. HasAlbania decided toapply?WT/ACC/ALB/23
Page27
Answer:
TheGovernment ofAlbania isworking inlinewiththeprocurement policies oftheinternational
organizations forimproving thetransparency ofthepublic procurement rules. Inthefuture Albania
willapply tobecome amember oftheAgreement onGovernment Procurement.
4. Policies Affecting Foreign Trade inAgricultural Products (WT/ACC/ALB/8/Add.1,
WT/ACC/ALB/9, WT/ACC/ALB/17 andWT/ACC/SPEC/ALB/1)
Regarding theanswers tothefollowing questions, please refertotheexplanatory noteontheAlbanian
Agriculture Schedule, which hasbeenprovided totheSecretariat (WT/ACC/SPEC/ALB/1/Add.1).
Thisexplanatory noteincludes thedetailed information onfoodstuff aidaswellasonthemethod of
theAMScalculation.
(a) Imports
Question 79.
Arethere many modifications inthecustoms duties applied ontheagricultural products? Ifyes,
forwhich sub-products? Shall themaximum tariff inthecategory 2403 besubstituted inthe
short term?
Answer:
Thereisnospecificmodificationforagriculturalproducts.Themaximumtariffforcategory2403
is30percentandnosubstitution isplanned intheshort term. Formore detailed information, please
consult theapplied ratesoftariffs inAlbania sentwiththeofferonbinding tariffs inMay1997 tothe
WTO Secretariat (WT/ACC/SPEC/ALB/3).
(b) Exports
Question 80.
CanAlbania confirm thatalldiscriminatory excise taxes onspirits willbeeliminated before
accession?
Answer:
Albania confirms that"alldiscriminatory excise taxes onspirits willbeeliminated before
accession"
Question 81.
CanAlbania confirm thatthere isnolimitation forobtaining tobacco orliquor taxstamps (as
longastheapplicant hasnodebts towards theState andshows every three months thatexcise
taxes have been paidontheproducts sold)?
Answer:
Albania confirms that"there isnolimitation forobtaining tobacco orliquor taxstamps, as
longastheapplicant hasnodebts towards theState".WT/ACC/ALB/23
Page28
Question 82.
Weappreciate thehard work involved incompiling suchacomprehensive agricultural schedule
inWT/ACC/ALB/9 atthisstage ofthenegotiations.
Document WT/ACC/ALB/9 indicates thatAlbania willbind itsexport subsidies anddomestic
supportcommitmentsatzero.WestronglyrecommendthisandcongratulateAlbaniaonitsdecision
nottoprovide export subsidies foragricultural products.
Would Albania comment, however, onthestatement inWT/ACC/ALB/8/Add.1 thatAlbania
would liketonegotiate itslevelofexport subsidies?
Export subsidies arethemost trade distorting forms ofagricultural support. Since Albania has
never implemented export subsidies, wedonotbelieve Albania hastheright tonowestablish them.
Westrongly encourage Albania tomaintain itsexport subsidy-free regime andbinditsexport
subsidy commitment atzero.
Answer:
Weunderstand thattheexport subsidies arethemostdistorting forms ofsupport andwealso
areaware oftheimportance ofthecommitment onthisissue. But,actually Albania isnotintheposition
tobinditsexport subsidy commitment atzero.
(e) Internal policies
Local foodstuff aid
Question 83.
According totheAlbanian delegation,no measure from thebudget forfoodstuff aidwasapplied,
because foreign aidwasusedforthispurpose. Could wehaveanexplanationt? Forwhat isforeign
aidmeant?
Answer:
Infactbasic foodstuff (wheat, flour, sugar, oil)havebeenprovided tolawincome people to
helpthem copewithshortages anddisruptions infoodsupplies duetotransition factors (lek5billion
forfouryears/1992-1995). Thiswas,however, provided under external assistance programmes as
emergency aidorother types ofassistance. Intherecent years, theprogramme wastargeted toremote
areas andisnowcomplete.
Question 84.
Inwhat statistical bases could Albania provide forthecomparison oflocalsubsidy inagriculture
during lastthree years?
Which isthemethod ofthecalculation usedforthecalculation oftotalAMS perproduct ?WT/ACC/ALB/23
Page29
Answer:
Through aGovernment Decision (Decision No.273,dated 16June1993) aceiling price for
salesofflour (75percent) which isusedtoproduce onetypeofbread, called "themassive bread"
wasestablished at29.6Lek/kg. Onpaper thepricebecame effective on1July1993. Itwascalculated
based onareference international price forwheat andthecostofdomestically producing flour and
bread, aswellasaminimum profit margin. Defacto, however, upuntilthesecond halfof1995 the
market price never reached theceiling providing fortheadministered price nottobeeffective. The
actualpricefluctuatedaroundvalues30-10percentlowerthanthefixedceilingbecauseoflargeamounts
ofwheat available from Food Aidsandbecause oflow(lower thanforeseen) world prices forwheat
andflour which were thenimported intothecountry.
Duringtheyears1993-1995,severalincreasesinthepricesofsecondarymaterials,fuel,steam,etc
andinlocalsalaries, tookplace. Although thisresulted inhigher production costsforflourandbread,
because ofthelowpricefortherawmaterial (wheat), thereflection ofsuchcostsinprices ofthefinished
product (flour, bread) wasnotsubstantial, stillallowing foramarket price below theadministering
ceiling.
Since inthesecond halfof1995, theabove picture haschanged, mainly duetoexternal shocks
(wheat price increased sharply ininternational markets), itbecame difficult forlocalflourandbread
producers tosustain theceiling price.
Tomitigate sucheffects, thegovernment implemented anumber ofmeasures including:
(a) thereduction inthepriceofpower andwater provisions when usedfortheproduction offlour
andbread. Thishadaneteffect of164.7 Lek/Kv inreducing theunitcostsofbread. Theannual
revenues foregone tothegovernment amount tolek330million (1647 Lek/ton x200,000 ton
annual bread production);
(b) bread other thanthe"massive bread" wasexempt fromtheturnover tax("massive bread" was
never taxed). Suchameasure makes upanannual costoflek180million totheStatebudget
(revenueforegone)giventhattheamountof"non-massivebread"producedannuallyisestimated
at40,000 tons(40,000 x30,000 Lek/ton x15%);
(c) wheat andflourimports havebeenexempt fromcustoms duties. Onlyforflour, suchmeasure
costs thebudget some US$1.3 million annually (US$ 170x100,000 tonsannual imports);
(d) wheat andfloursupplies fromaidorgovernment purchases havebeensoldatprices wellbelow
themarket rates. Theprice gapforwheat (import price anddomestic price) sustained bythe
government is40US$/ton (US$200-US$160). Within thefirsthalfof1996, 40,000 tonsof
wheat aretobepurchased bythegovernment andsome additional 30,000 tonsofwheat and
flour willreach thecountry intheform offoodaidfrom theUnited States, France andthe
Czech Republic. These were soldinthedomestic market at160US$/ton.
Ofcourse,itispossibletoquantifytheeffectofsuchsubsidisationinthecostofflourproduction.
Thismeasures isconsidered asatemporary measure toensure thatallcitizens haveadequate access
tobread (food security reasons) which, eventhough itinvolves purchasing ofgovernment stocks and
salesatsubsidised ratestoinfluence thedomestic price, isallowed fordeveloping countries. Based
onthatithasnotbeenincluded inthecalculations oftheAMS.WT/ACC/ALB/23
Page30
Theabove mechanisms are,however, notsufficient tomaintain thedomestic price forflour
within limits which allow forthepre-set ceiling tobesustained. Ontheother hand, localproducers
areweak andsubsistence oriented and,moreover, therequired marketing arrangements which could
make possible theexporting ofcereals donotexist. Asaresult localproducers cannot benefit from
higher world prices.
Thecalculation ofAMS hastaken intoconsideration thesetadministered ceiling priceforflour
asfrom theGovernment Decision (29.6 Lek/kg.) andanexternal reference price converted intoour
localcurrency(US$340/kg.equalto34.00Lek/kg.)whichisonlyrelevantfortheperiodfromJuly1995
onwards. TheAMS hasbeen calculated ontheamount offlour which wasactually soldatthe
administered rates(10,000,000 kg.).Asexpected theAMS isnegative which indicates thatthispolicy
isprotecting consumers andindirectly taxing producers.
Thestatistical datausedfortheabove answers isfromtheNational Institute ofStatistics and
theStatistics Department intheMinistry ofAgriculture andFood.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME (WT/ACC/ALB/2,
WT/ACC/ALB/4, WT/ACC/ALB/8/Add.8 andWT/ACC/ALB/8/Add.9)
1. General
(a) Intellectual property policy
Question 85.
AtthelastWorking Party meeting, thisdelegation tabled anumber ofquestions onAlbania 's
ability toimplement theWTO TRIPS Agreement, based ontheinformation provided in
WT/ACC/ALB/4. Wehave notfound theresponses tothese questions inthedocumentation we
have received. Wewould appreciate theguidance oftheAlbanian delegation onwhere these
responses canbefound. Welistthequestions, forinformation purposes, andincaseresponses
tothem were notincluded inAlbania 'scurrent documentation.
Answer:
Indocument WT/ACC/ALB/4 alltheanswers tothequestions imposed bymember countries
during thefirstmeeting withWorking Party areprovided.
Question 86.
Initsanswer toquestion No4(WT/ACC/ALB/8/Add.8) Albania explains thatsome provisions
oftheTRIPS Agreement arenotincluded inAlbanian Law, buttheir preparation isunder
consideration bytheAlbanian Government. Could theAlbanian Government please explain what
provisions areconcerned andwhat thetime-frame forpossible amendments is.
Answer:
TheGovernment ofAlbania isworking onthecomparison oftheIndustrial Property Lawand
TRIPS Agreement oftheWTO, inorder tomake therequired amendments totheexisting law.WT/ACC/ALB/23
Page31
2. Substantive Standards ofProtection
(a) Copyright andrelated rights
Question 87.
Itappears thatcompilations ofdata(databases) arenotspecifically given asasubject matter of
copyright protection insection II.-Copyright -ofdocument WT/ACC/ALB/2. Please explain
howthisissue istreated inAlbanian copyright lawand/or interpreted.
Answer:
Computer programs areincluded intheAlbanian Copyright Law. Section 13ofthislawdefines
therightofthelawful owner ofacopyofacomputer program, without theauthor 'sauthorization to
make acopyoranadoption ofsuchaprogram, incases where thisadoption isindispensable forthe
utilization ofthecomputer program forthepurposes ofwhich theprogram hasbeenlawfully obtained;
andforarchival purposes andifnecessary forthereplacement ofthecopylawfully obtained.
Section 14defines theconditions inwhich suchauthorization oftheauthor willnotberequired.
Question 88.
IfAlbanian copyright lawprovides thesame protection tocomputer programs andcompilations
ofdata, does itcomply with "whether inmachine readable orother form" provided forby
Article 10.(2) oftheTRIPS Agreement?
Answer:
Albanian Copyright Law provides thesame protection tocomputer programs anddata
compilations required byArticle 10(2) oftheTRIPS Agreement anditfullycomplies with"whether
inmachine readable orother form". Computer programs under Albanian lawareprotected asliterary
works under theBerne Convention.
Question 89.
Could theAlbanian Government explain indetail theexceptions andlimitations ofacopyright
aswellasrelated rights?
Answer:
Chapter IIIoftheAlbanian Copyright Lawdefines theexceptions andlimitations ofacopyright
aswellasrelated rights.
Insection 6ofthelawisgiven thatfreereproduction forprivate purposes shallbepermitted,
without theauthor 'sauthorization andwithout payment orremuneration, toreproduce alawfully
published work exclusively fortheusers'ownprivate use(including useforscientific andresearch
purposes).
Paragraph (1)shallnotbeapplied inrespect of:
(a) thereproduction ofworks ofarchitecture intheform ofbuildings orsimilar constructions;WT/ACC/ALB/23
Page32
(b) thereprographic reproduction ofworks offineartsofrestricted edition, ofgraphic presentation
ofmusical works (sheet music) andofexercise books orother one-use publications;
(c) thereproduction ofcomputer programs except forcasesmentioned insection 13oftheAlbanian
Law;
(e) anyother reproduction thatwould conflict withthenormal exploitation ofthework orwould
unreasonably prejudice thelegitimate interests oftheauthor.
Accordingtosection8oftheAlbanianCopyrightLaw,thefreeuseofteachingshallbepermitted
without theauthor 'sauthorization andwithout payment ofremuneration, butsubject totheobligation
toindicate thesource andthename oftheauthor ifitappears therein:
(a) tousealawfully published work bywayofillustration inpublications, broadcasts orsound
orvisual recordings forteaching; and
(b) toreproduce, bygeographic means, forteaching orexaminations ineducational institutions
whose activities donotserve fordirect orindirect commercial gain, totheextent justified by
thepurpose, single articles legally published inanewspaper orperiodical, short extracts from
alegally published work oralegally published short work, provided thatsuchutilization is
compatible withfairpractice.
Section 9defines therights andexceptions ofthefreereproduction byLibraries andArchives.
According totheabove mentioned section, suchreproduction shallbepermitted, without theauthor 's
authorization andwithout payment ofremuneration, toreproduce single copies ofawork byalibrary
orarchive whose activities donotserve fordirect orindirect commercial gain, thecopyofwhich is
inthepermanent collection ofthelibrary orarchive concerned, inorder to:
(a) preserve and,ifnecessary (intheevent thatitislost,destroyed orrendered unusable), replace
suchacopy;
(b) replace, inthepermanent collection ofanother library orarchive, acopywhich hasbeenlost,
destroyed orrendered unusable;
(c) provided thatitisimpossible topurchase suchacopy within areasonable timeandunder
reasonable conditions.
Section 10oftheAlbanian Copyright Lawdeals withtherights andexceptions ofthefree
reproduction forlegalandadministrative purposes. Itdefines thatsuchreproduction ispermitted without
theauthor 'sauthorization andwithout remuneration toreproduce awork forcourt oradministrative
proceedings totheextent justified bythepurpose.
Section 11ofthislawalsodefines therights andexceptions ofthefreeuseforinformation
purposes. According tothissection suchusewillbepermitted without theauthor 'sauthorization and
without payment ofremuneration, butsubject totheobligation toindicate thesource andthename
oftheauthor, ifitappears therein, to:
(a) reproduce anddistribute bythepress orbroadcast orcommunicate tothepublic bycable, an
article published inanewspaper orperiodical oncurrent economic, political orreligious topics
orabroadcast workofthesamecharacter incaseswhere therightofreproduction, broadcasting
orsuchcommunication tothepublic isnotexpressly reserved;WT/ACC/ALB/23
Page33
(b) reproduce andmake available tothepublic, forthepurpose ofreporting current events, by
means ofphotography, cinematography, broadcasting orcommunication tothepublic bycable,
awork seenorheard inthecourse ofsuchevent, totheextent justified bytheinformatory
purpose;
(c) reproduce inthepress, broadcast orcommunicate tothepublic, political speeches aswellas
lectures, addresses, sermons andother works ofsimilar nature delivered during legal
proceedings, forpurpose ofcurrent information, totheextent justified bythepurpose, the
authors retaining theirrights topublish collections ofsuchworks.
Section 12ofthelawdefines thelimitations ofthefreeuseofpictures ofworks permanently
located inpublic places. According tothissection itshallbepermitted, without theauthor 'sauthorization
andwithout payment ofremuneration, toreproduce broadcast orcommunicate tothepublic bycable
apicture ofawork ofarchitecture, awork offineart,aphotographic work orawork ofapplied art
thatispermanently inapublic place (square, street, park, etc)except ifthepicture ofthework isthe
main subject ofsuchreproduction, broadcasting orcommunication andifitisusedforcommercial
purposes.
AcopyofthelawNo.7564, dated 19May1992 "OnCopyright" anditsamendments have
been provided totheSecretariat during thesecond meeting ofWorking Party inOctober 1996
(WT/ACC/ALB/20).
Question 90.
Does Albanian lawprotect performers andproducers ofphonograms "retroactively" (see
Article 14.6ofTRIPS Agreement inconjunction withArticle 18Berne Convention)?
Answer:
Yes.AlbanianLawprotectsperformersandproducersofphonograms"retroactively"asrequired
bytheArticle 14.6ofTRIPS Agreement inconjunction withArticle 18Berne Convention.
Question 91.
Could theGovernment ofAlbania explain inmore detail (than intheanswer toquestion No.22
indocument WT/ACC/ALB/8/Add.9) howcomputer programs areprotected, inparticular under
what circumstances isitpossible thatathird person canbe"thelawful owner ofacopy ofa
computer program"?
Answer:
Sections 13and14ofthelawdefine thelimitations andexceptions forthefreereproduction
andadaptation aswellasfreedecompilation ofcomputer programs. According tosection 13thefree
reproduction andadaptation ofcomputer programs shallbepermitted forthelawful owner ofacopy
ofacomputer program, without theauthor 'sauthorization andwithout thepayment ofseparate
remuneration, tomake acopyoranadaptation ofsuchprogram, provided thatsuchacopyorsuch
anadaptation is:
(a) indispensable fortheutilization ofthecomputer program forthepurposes forwhich theprogram
hasbeenlawfully obtained; andWT/ACC/ALB/23
Page34
(b) forarchival purposes and,ifnecessary (intheevent thatthose copies arelost,destroyed or
rendered unusable), forthereplacement ofthecopylawfully obtained.
Thecopyoradaptation mentioned above inparagraph (1)shallbedestroyed intheevent that
continued possession ofcopied ofthecomputer program ceases tobelawful.
Regarding thefreecompilation ofcomputer programs theauthor 'sauthorization shallnotbe
required where reproduction ofthecodeandadaptation (translation) ofitsform areindispensable to
obtain theinformation necessary toachieve theinteroperability ofanindependently created computer
program withother programs, provided thatthefollowing conditions aremet:
(a) these actsareperformed bythelicensee orbyanother person having arighttouseacopyof
aprogram, orontheirbehalf byaperson authorized todoso;
(b) theinformation necessary toachieve interoperability hasnotpreviously beenavailable tothe
persons referred toinsub-paragraph (a);and
(c) these actsareconfined totheparts oftheoriginal program which arenecessary toachieve
interoperatibility.
Theprovisionsofparagraph(1)shallnotpermittheinformationobtainedthroughitsapplication:
(a) forgoals other thantoachieve theinteroperatibility oftheindependently created computer
program;
(b) tobegiven toothers, except when necessary fortheinteroperability oftheindependently created
computer program; or
(c) tobeusedforthedevelopment, production ormarketing ofacomputer program substantially
similar initsexpression, orforanyother actwhich infringes copyright.
Theprovisions ofthissection maynotbeinterpreted insuchawayastoallow itsapplication
tobeusedinamanner which conflicts withanormal exploitation ofthecomputer program orthat
unreasonably prejudices thelegitimate interests ofitsauthor.
Section 15oftheAlbanian Lawdefines thefreeephemeral recording byabroadcasting
organization, without theauthor 'sauthorization andwithout payment ofseparate remuneration, tomake
anephemeral recording byitsownfacilities andforuseinitsownbroadcasts ofawork which ithas
therighttobroadcast. Thebroadcasting organization shallbeobliged todestroy sucharecording within
sixmonths from itsmaking, unless alonger termhasbeenagreed onwiththeauthor ofthework
recorded. Such arecording, however, maybepreserved inofficial archives, alsowithout suchan
agreement, onthegrounds ofitsexceptional documentary andhistoric character.
Meanwhile section 16ofthesame lawdefines thelimitations onthefreepublic performance.
According totheabove mentioned section itshallbepermitted, without theauthor 'sauthorization and
without payment ofremuneration, toperform awork publicly inthecourse oftheactivities ofan
educational institution, bythestaffandstudents ofsuchaninstitution, iftheaudience iscomposed
exclusively ofthestaffandstudents oftheinstitution orparents andguardians ofthestudents orother
persons directly connected withtheactivities oftheinstitution.WT/ACC/ALB/23
Page35
(b) Trademarks, including service marks
Question 92.
Inresponse toquestion 116(WT/ACC/ALB/4) Albania usestheterm"well-known" mark. Please
define thisterm inthecontext oftheGovernment ofAlbania 'sTrademark Law. Please include
under what procedure amark isconsidered well-known.
Theanswer tothepreviously noted question 116indicates thatwell-known marks willnotbe
registered buttheexplanation inquestion 118doesnotseem toauthorize such arefusal. Also
nomention ismade orrefusal toregister amark thatismerely thename ofthething withwhich
themark isassociated. Please clarify howtheGovernment ofAlbania treats these types of
trademarks.
Answer:
Asignshallnotbeprotected asamark, ifitsuseasamark would beinconflict withearlier
rights.
Thefollowing, inparticular shallbeconsidered asanearlier right:
- anidentical orsimilar mark ofathirdparty, inrespect ofidentical orsimilar goods orservices;
inrespect ofgoods orservices which areneither identical norsimilar which haveanearlier
filing dateorpriority date,andwhich havebeenregistered orsubsequently willberegistered;
- awell-knownmarkwithinthemeaningofArticle6bisoftheParisConventionfortheProtection
ofIndustrial Property, ofathirdparty.
Forthedefinition ofawell-known mark, theinformation oftheconsumers about themark willbe
taken intoconsideration.
Question 93.
Fiveyears istoolongbefore allowing amark tobecancelled fornon-use.
What areAlbania 'splans toamend thelawtoshorten thetimeallowed before amark canbe
cancelled fornon-use?
TRIPS Article 15(3) provides thatatrademark application shallnotberefused solely ontheground
thatintended usehasnottaken place before theexpiry ofaperiod ofthree years from thedate
ofapplication. ThisMember 'sdomestic lawwaschanged intheUruguay Round Agreements Act
from twoyears tothree years ofnon-use before cancellation ofamark tocomply withTRIPS.
Answer:
Albania intends toamend thelawinorder toshorten thetimeallowed before amark canbe
cancelled fornon-use from fiveyears tothree years asrequired bytheTRIPS Agreement.WT/ACC/ALB/23
Page36
Question 94.
Thisdelegation would liketoknow iftheAlbanian legislation allows theMember Governments
oftheWTO torenew theregistration oftheir trade andproduction marks inconformity with
international obligations within theframe ofWIPO andinthespirit oftheTRIPS Agreement.
Ifyes,under what conditions?
Atthebeginning ofthisyear, oneSwiss marks agent informed theSwiss authorities thattheOffice
ofMarks oftheChamber ofCommerce ofAlbania inTirana, theonlycompetent authority for
receiving themandates forforeign companies, didnotaccept themandates ofrenewing some
foreign registered marks. Intheconcrete caseitwasforthefollowing marks: Omega Constellation
No.406,Longines No.8/700/3, Rolex withcrown No.17/1603/4, Rolex No.15/1384/4, Certina
symbol No.18/2027. TheSwiss Embassy inTirana, hasreceived word thattheMark Office will
doallnecessary. Anyhow thisintervention untilnowcould notresolve theproblem. TheAlbanian
Mark Office hasnotgiven further instruction totheAlbanian correspondent oftheSwiss marks
agent.
TheSwiss authorities would liketohave aquick answer onthisquestion.
Answer:
According totheAlbanian legislation thismatter istheresponsibility oftheChamber ofIndustry
andCommerce. TheChamber ofIndustry andCommerce isworking onthisissue, inorder totake
necessary measures tosatisfy therequest oftheabove-mentioned Swiss companies aswellasforother
foreign companies.
Question 95.
Isthecontext oftheprotection ofwell-known marks, could theGovernment ofAlbania bemore
specific about when "theuseofatrademark conflicts withtherights ofawell-known mark"?
Answer:
Asignshallnotbeprotected asamark, ifitsuseasamark would beinconflict withearlier
rights.
Thefollowing, inparticular shallbeconsidered asanearlier right:
- anidentical orsimilar mark ofathirdparty, inrespect ofidentical orsimilar goods orservices;
inrespect ofgoods orservices which areneither identical norsimilar which haveanearlier
filing dateorpriority date,andwhich havebeenregistered orsubsequently willberegistered;
- awell-knownmarkwithinthemeaningofArticle6bisoftheParisConventionfortheProtection
ofIndustrial Property, ofathirdparty.
Forthedefinition ofawell-known mark, theinformation oftheconsumers about themark willbe
taken intoconsideration.
Question 96.
Intheanswer toquestion No.15(WT/ACC/ALB/8/Add.8) theGovernment ofAlbania describes
theduties ofthePatent Office. Does thetrademark registrar have thesame responsibilities or
doeshehave more thanthose described? Please explain.WT/ACC/ALB/23
Page37
Answer:
Thetrademark registrar hasthesame responsibilities asdescribed intheduties ofthePatent
Office.
(d) Industrial designs
Question 97.
How aretextile designs protected?
Answer:
TheAlbanian Law"OnIndustrial Property Rights" provides fortheprotection oftextile designs.
PartIIoftherespective law,Article 59gives thedefinition andconditions ofprotection forindustrial
designs, explaining thattextile designs areincluded inthisprotection. Articles 60-69 provide theright
ofprotection, theprocedures forregistration, thetemporary protection ofindustrial designs exhibited
atinternational exhibitions, etc.
(e) Patents
Question 98.
Concerning theresponse toquestion 109,doesimportation satisfy theworking requirement for
patents?
Answer:
Albanian lawdoesnotprovide details forthecases inwhich thepatent invention hasnotbeen
worked orhasbeeninsufficiently worked intheRepublic ofAlbania, butitismentioned thatthePatent
Office doesnotgrantthenon-voluntary licence, orifcertain circumstances existsuchastheimportation
oftheproduct incorporating thepatented invention whether itsatisfies thelocalworking.
Question 99.
Ifnot,failure toallow imports tosatisfy theworking requirement would beinconsistent with
theprohibition against discrimination intheenjoyment ofpatent rights based onwhether something
isimported ordomestically produced.
Areparties required toseekvoluntary licences from thepatentee before theymayapply fora
compulsory licence?
Answer:
Albanian legislation onTRIPS doesnotinclude theprovisions dealing withthatproblem.
Question 100.
Inthelastsentence oftheresponse toquestion 128,theGovernment ofAlbania notes thatifthe
owner ofthepatent proves imminent infringement, thecourt shallgrant aninjunction toprevent
infringement andanyother remedy provided inthegeneral law.Isthepreliminary relief mentionedWT/ACC/ALB/23
Page38
hereavailable toowners ofother forms ofintellectual property, i.e.,those other than patent
owners?
Answer:
Yes,itis.
Question 101.
Could Albania explain under what conditions compulsory licences/government useisgranted?
Answer:
Ontherequest ofanyperson whoproves hisability towork thepatented invention inthe
Republic ofAlbania, made aftertheexpiration ofaperiod offouryears from thefiling dateofthe
application forthepatent orthree years from thegrant ofthepatent, whichever islater, thePatent
Office maygrant anon-exclusive, non-voluntary licence ifthepatented invention isnotworked or
isinsufficiently worked intheRepublic ofAlbania. Thegrantofanon-voluntary licence shallbesubject
tothepayment ofequitable remuneration totheowner ofthepatent.
Anon-voluntary licence shallnotbegranted ifthePatent Office isconvinced thatcircumstances
existtojustify thenon-working orinsufficient working ofthepatented invention intheRepublic of
Albania.
Indeciding whether tograntanon-voluntary licence, thePatent Office shallgiveboththeowner
ofthepatent andtheperson requesting thenon-voluntary licence anadequate opportunity topresent
arguments.
Anynon-voluntary licence shallberevoked when thecircumstances which ledtoitsgranting
cease toexist, taking intoaccount thelegitimate interests ofthepatent owner andofthelicensee. The
continued existence ofthese circumstances shallbereviewed upon request ofthepatent owner.
Question 102.
CouldtheGovernmentofAlbaniaexplainunderwhatcircumstancesthenonorinsufficientworking
ofapatent isjustified?
Answer:
Albanianlawdoesnotprovidedetailsofcasesinwhichthepatentinventionhasnotbeenworking
orinsufficiently worked intheRepublic ofAlbania, butitismentioned thatthePatent Office does
notgrant thenon-voluntary licence ifcertain circumstances existwhich justify thenonworking or
theinsufficient working ofthepatent invention inAlbania. Itwilldepend onthecircumstances ofthe
importation oftheproduct incorporating thepatented invention whether itsatisfies thelocalworking.
Question 103.
Could theGovernment ofAlbania bemore specific initsanswer toquestion No.8
(WT/ACC/ALB/8/Add.8) withregard toexceptions from patentability?WT/ACC/ALB/23
Page39
Answer:
Inorder tobepatentable, aninvention shallbenovel, shallinvolve aninventive stepandshall
beindustrially applicable.
Thefollowing, inparticular, shall notberegarded asinventions within themeaning of
paragraph (1):
(a) discoveries, scientific theories andmathematical methods;
(b) aesthetic creations;
(c) schemes, rulesandmethods forperforming mental acts,playing games ordoing business, and
programs forcomputers;
(d) presentations ofinformation.
Theprovisionsoftheabove-mentionedparagraphshallexcludepatentabilityofthesubjectmatter
oractivities referred tointhatprovision onlytotheextent towhich apatent application orpatent relates
tosuchsubject matter oractivities assuch.
Apatent shallnotbegranted inrespect ofaninvention ofwhich thepublication orexploitation
would becontrary topublic order ormorality.
Nopatents shallbegranted forsubstances obtained through internal nuclear transformations
formilitary purposes.
Nopatents shallbegranted forinventions ofsurgical, diagnostic ortherapeutical methods
practised onthehuman oranimal body, astheyshallberegarded asinventions which arenotsuspectable
to,industrial application. Thisprovision shallnotapply toinventions relating tosubstances anddevices
foruseinanyofthese methods.
Nopatents shallbegranted inrespect ofplant oranimal varieties oressentially biological
processes fortheproduction ofplants oranimals; thisprovision doesnotapply tomicrobiological
processes ortheproducts thereof.
(g) Layout designs ofintegrated circuits
Question 104.
Theresponse toquestion 113(WT/ACC/ALB/14) indicates thattheGovernment ofAlbania will
prepare anactontheprotection oflayout designs ofintegrated circuits.
When willthedrafting oflegislation beundertaken andwhen isenactment oflegislation expected?
Please submit acopyofthedraft legislation totheSecretariat forreview bytheWorking Party.
Answer:
TheAlbanian Government hasunder consideration thepreparation ofalawonlayout-designs
ofintegrated circuits. There isstillnooutline, butthepreparation willbebased onArticles 35-38 of
theTRIPS Agreement. ThePatent Office willbetheresponsible body forthese matters.WT/ACC/ALB/23
Page40
Question 105.
Itappears thatAlbania hasnotyetadopted laws toprotect layout-designs (topographies) of
integrated circuits aswellasundisclosed information (trade secrets). Ifthisisthecase, please
explain howthese issues arebeing treated nowandindicate thetimetable fortheadoption ofsuch
laws.
Answer:
Albania hasunder consideration thepreparation ofalawonprotection oflayout designs
(topographies) ofintegrated circuits. There isnotyetanytimetable fortheadoption ofsuchlaws.
Regarding trade secrets, Article 49ofLawNo.8044, dated 7December 1995, provides protection
forbusinesssecrets.Accordingtothisarticletheprovidingofbusinessoroperativesecretsontheactivity
ofthecompetitors inillegal wayorencouraging theiremployees inorder touseortosellthem is
prohibited. Itisalsoforbidden, togivetoothers ortousebusiness oroperative secrets, knowledge
which areprovided during therelations ofemployment orother confidential relations, during theterm
ofthese relations inorder togainsome advantages inthecompetition foroneself orforanother third
party ortodamage theowner ofanycommercial company. Thisobligation isvalid foraperiod of
twoyearsaftertheterminationoftheemploymentortheconfidentialrelationiftheownerofthisbusiness
activity hasajustified interest forthesame thing andifitdoesnotleadtoanyunreasonable restriction
ofthebusiness ortheprofessional activity ofothers. Competitions provides forprotection oftrade
secrets.
(h) Requirements onundisclosed information, including trade secrets andtestdata
Question 106.
According totheresponse toquestion 126, Albania does notcurrently provide trade secret
protection.
When willAlbania prepare itslawtoprovide trade secret protection? How willthislawbe
developed? How willtheGovernment ofAlbania enforce thisprotection?
Question 107.
TheGovernment ofAlbania explains thattrade secrets areprotected bytheLawonCompetition.
Could theGovernment bemore specific andexplain?
Answer:
AlbanianCompetitionLawprovidesfortheprotectionofbusinesssecrets,includingtheprotection
oftrade secrets. Article 49ofthislawdefines thattheproviding ofbusiness oroperative secrets on
theactivity ofthecompetitors inillegal wayorencouraging theiremployees inorder touseortosell
them isprohibited. Itisalsoforbidden, togivetoothers ortousebusiness oroperative secrets,
knowledge which areprovided during therelations ofemployment orotherconfidential relations during
thetermoftheserelations, inorder togainsome advantages inthecompetition foroneself orforanother
thirdparty ortodamage theowner ofanycommercial company. Thisobligation isvalid foraperiod
oftwoyears afterthetermination oftheemployment ortheconfidential relation iftheowner ofthis
business activity hasajustified interest forthesame thing andifitdoesnotleadtoanyunreasonable
restriction ofthebusiness ortheprofessional activity ofothers.WT/ACC/ALB/23
Page41
LawNo.8044, dated 7December 1995 "OnCompetition" willbesubmitted totheWTO.
4. Enforcement
Question 108.
Please provide amore complete description ofAlbania 'senforcement system regarding intellectual
property rights, including anyborder enforcement thatisavailable. Inaddition, please provide
copies ofthelawsinquestion totheSecretariat forreview byWorking Party members.
Answer:
There arenoonesystem ofenforcement atborders inAlbania, butthepreparation ofthissystem
isunder consideration.
Question 109.
Could theGovernment ofAlbania explain, inmore detail thaninitssubmitted documentation,
itsjudicial system toenforce intellectual property rights?
Answer:
There aresome general provisions inAlbanian legislation dealing withtheenforcement of
intellectual property rights. Thepreparation ofthespecific provisions toprovide enforcement forthe
intellectualpropertyrightssystemrequiredbytheTRIPSAgreementandotherinternationalorganizations
isunder consideration. Thetwogovernment institutions responsible fordrafting suchlegislation,
respectively theMinistry ofCulture, Youth andWomen forcopyright andtheAlbanian Patent Office
forthepatents, marks, industrial designs, etc.,areworking onthisissue.
VI. TRADE-RELATED SERVICES REGIME
Professional services
Question 110.
Itisoften useful forservice providers establishing inaforeign country tobring, atleastinitially,
their ownexperts oninternational law,onthelawintheir owncountries, orintheaccounting
practices ofthecompany. Isthispermitted under Albanian law?Isitpermitted forinternational
lawandaccountancy firms toestablish inAlbania, andifso,what services aretheypermitted
toprovide?
Answer:
There isnotyetlegalframework toestablish therelationship offoreigners inAlbania.
TheCouncil ofMinisters hasapproved anOrder No.1of2March 1995"Fororganizing the
Profession ofCertified Public Accountant".
Theorder provides rules onprocedures andconditions ofregistration. Toberegistered, a
candidate must;
- beanAlbanian national formore than5years;WT/ACC/ALB/23
Page42
- enjoy civilrights;
- havenotreceived apenal condemnation;
- beatleast25years old;
- haveadegree ineconomic science;
- havenolessthanthree years professional experience;
- haveparticipated inandpassed atestofprofessional skills;
- provide proof ofhonesty.
Accordingtotheordertheregistrationofaforeignphysicalpersonispossibleunderthefollowing
conditions:
Thecandidate must:
- fulfil alltheconditions described intheprevious paragraph;
- beresident inAlbania formore than5years;
- speak theAlbanian language (alanguage testmust betaken);
- havetheagreement oftheirhome StatetotakeAlbanian nationality, which isrequired
toexercise theprofession ofCertified Public Accountant inAlbania.
Theevaluation ofprofessional skills mustinclude anexam ofAlbanian language, andanexam
ontheAlbanian legalsystem.
Thisorder provides rules andcriteria forcompiling thelistofcertified accountants bythe
Institute, rules andconditions thatmustbefulfilled fortheexamination ofprofessional abilities and
ethics, andsanctions incases ofviolation ofrules.The order alsodefine theworking programme and
compensation ofcertified public accountant.
There isnolegalframework toallow orprohibit foreign private companies tooffersuchservices
asintra-industry services.
Financial services -banking
Question 111.
Inresponse toquestion 56ofWT/ACC/ALB/3 onthetworespects inwhich foreign banks do
notreceive national treatment, minimum capital requirements andtheprohibition onforeign
banks accepting deposits from natural orjuridical Albanian persons, Albania stated thatthere
wasaproposedforeignbankbranchesengaginginacceptanceofdepositsfromnaturalandjuridical
Albanian persons.
What isthestatus ofthatamendment?
Weappreciate theinformation anddraft schedule ofcommitments provided byAlbania. Weseek
further information andhope thatitwillassist Albania inconsidering possible improvements
initsschedule.
Answer:
Under thenewLawof1996 "OntheBanking System" andtheregulation forgranting ofa
licence tooperate asabankintheRepublic ofAlbania, thereisnodiscrimination fortheforeign banks
ontheminimum capital requirements. According tothese regulations foreign banks receive exactly
thesame treatment asnational banks ontheminimum capital requirements.WT/ACC/ALB/23
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InlinewithArticle 26oftheabove lawitisnotprohibited fortheforeign bank'sbranches
toaccept deposits fromnatural andjuridical Albanian persons. There isnoamendment onthisarticle
(Article 26).
Question 112.
Arethere anyfinancial services asdefined inparagraph 5(A)(V) through (XVI) oftheannex on
financial services which arenotlisted inyour schedule, butcurrently provided bytheprivate
sector inAlbania? Areanysuch services provided byState-owned institutions alone orin
competition withprivately-owned financial institutions inAlbania?
Answer:
Recently Albania hasbeenworking onthenewschedule offinancial services which isalmost
complete andwillbepresented inthecoming negotiations. Thisdraftincludes allfinancial services
asdefined inparagraph 5(A)(V) through (XVI) oftheannex onfinancial services withtheexception
ofservices listed under items (X),(F)and(XIV) ofthesaidannex. Theactivities listed inthenew
draftschedule onbanking andfinancial services canbeprovided freely bybothprivate- andState-owned
financial institutions.
Question 113.
Arethere anymonopoly suppliers offinancial services?
What arethebanking activities thatcanbeprovided bybanks inAlbania? Canbanks inAlbania
involve themselves insecurities orother non-traditional banking activities?
Answer:
There arenorestrictions thatwould limitinanywaytheability ofanon-resident financial
service provider tosubmit cross-border intotheterritory ofAlbania, including: (i)advisory andother
auxiliaryservices,and(ii)theprovisionandtransferoffinancialinformationandfinancialdataprocessing
(asdefined inparagraph 5(A)(V) through (XVI) oftheannex onfinancial services)
Question 114.
Arethere anymeasures thatlimitinanywaytheability ofanon-resident financial service provider
toprovide cross-border intotheterritory ofAlbania: (a)advisory andother auxiliary financial
services; and(b)theprovision andtransfer offinancial information andfinancial dataprocessing
(asdefined inparagraph 5(A)(XV) and(XVI) oftheannex onfinancial services)? Ifso,please
describe themeasures thatapply.
With reference tofinancial services asdefined inparagraph 5(A)(V) through (XVI) oftheannex
onfinancial services, arethere anyfinancial services thatwould limit inanywaytheability of
residents topurchase financial services intheterritory ofanother party, including licences required
forforeign currency transactions?
Answer:
Theability ofAlbanian residents topurchase financial services islimited bytheArticle 5of
theForeign Exchange Market Regulation. According tothisarticle, residents andnon-residents shallWT/ACC/ALB/23
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obtain theprior written approval oftheBank ofAlbania forcapital transfers, withtheexception of
thefollowing capital transfers which maybemade freely:
(a) inward capital transfers byresidents andnon-residents;
(b) outward capital transfers representing previously recorded capital inflows;
(c) transfers ofproceeds ofthewithdrawal ofnon-resident deposits;
(d) transfers undertaken inaccordance withtheLawforForeign Investment (Law No.7764dated
2November 1993, WT/L/56);
(e) transfersofproceedsofliquidationofAlbanianassetsbyanemigrantondeparturefromAlbania.
Question 115.
Arethere anymeasures thatwould apply tofinancial services asdefined inparagraph 5(A)(V)
through (XVI) oftheannex onfinancial services, thatwould limit theability ofanon-resident
financial service provider toestablish acommercial presence inAlbania asadirectly owned branch,
anagency, arepresentative office, awholly owned subsidiary, either through denovo investment
orthrough acquisition ofexisting enterprises toengage inanyoftheservices thatarenotlisted
inAlbania 'sschedule?
Answer:
There arenorestrictions thatwould limittheability ofnon-resident financial services provider
toestablish acommercial presence inAlbania asadirectly owned branch, agency, representative office
orwholly owned subsidiary, either through denovoinvestment orthrough theacquisition ofexisting
enterprises, toengage inanyoftheservices thatarelisted intheparagraph 5(A)(V) through (XVI)
oftheannex onfinancial services except fortheservices listed under items (X),(F)and(XIV) ofthe
annex.
Question 116.
Would youconfirm thatforeign-owned financial service providers thatareestablished inAlbania
willbeabletoexpand operations through additional locations orbranch operations onthesame
terms andconditions asdomestic financial institutions inlikecircumstances?
Answer:
Wecanconfirm thatforeign-owned financial services provider thatareestablished inAlbania
willbeabletoexpand operations through additional locations orbranch operations onthesame terms
andconditions asdomestic financial institutions inlikecircumstances. InlinewithArticle 5ofthe
LawonBanking System oftheRepublic ofAlbania, banks licensed bytheBank ofAlbania canextend
anddecrease theirnetwork (subsidiary, branches, agency orother banking offices) intheRepublic
ofAlbania, without thepreliminary authorization oftheBank ofAlbania.
Question 117.
Albania 'sschedule contains limitations fordifferent capital requirements forforeign-owned banks
anddomestic-owned banks. Would Albania explain thereasons fordifferent requirements?
Arethere anymeasures thatwould prevent aforeign-owned financial service provider from
becoming amember ofanyself-regulatory body, securities orfutures exchange ormarket, clearing
agency orother organization orassociation, noworinthefuture, onthesame terms andconditions
asadomestic institutions inlikecircumstances?WT/ACC/ALB/23
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Answer:
Forthemoment therearenorestrictions thatwould prevent aforeign-owned financial services
provider tobecome amember ofaselfregulatory bodyonthesameterms andconditions asadomestic
institution inlikecircumstances.
Question 118.
Please describe thestatus ofdevelopment ofprivate andgovernment securities market inAlbania.
Arethere anyrestrictions thatwould limit participation inthegovernment orprivate securities
markets byforeign-owned financial institutions inAlbania?
Arethere anylimitations, including onforeign currency, thatapply toaforeign resident 's
participation inprivate orgovernment securities markets?
Arethereanyprovisionsunderconsiderationforlaws,whichwouldregulatethosefinancialservices,
thatarenotcurrently listed inAlbania 'sschedule andwould beinconsistent withmarket access
andnational treatment provisions oftheGATS?
Answer:
Actually, thesecurity market inAlbania istrading onlygovernment securities indifferent length
ofmaturity. Forthemoment theprivate securities market isnotdeveloped. There arenorestrictions
thatwould limittheparticipation inthegovernment securities markets, bothprimary andsecondary,
offoreign-owned financial institutions inAlbania.
GovernmentsecuritiescanbetradedonlyinAlbanianLek(domesticcurrency)andnotinforeign
currencies inboththeprimary andsecondary markets.
Question 119.
Weunderstand thatthere arenorestrictions onthetemporary entry ofmanagers, executives
orspecialists ofafinancial services provider thatisestablishing orhasestablished acommercial
presence inAlbania. Please confirm thisunderstanding anddescribe thelength ofstayforsuch
temporary entry.
Answer:
Wecanconfirm thatthere arenorestrictions atallonthetemporary entry andterms ofstay
offoreign managers, executives orspecialists ofafinancial services provider thatisestablishing or
hasestablished acommercial presence inAlbania.
Investment
Question 120.
Inresponse toquestion 44inWT/ACC/ALB/3, onwhether ornotthere areanyceilings forforeign
investment inanysectors, Albania states initsanswer thatthere arenoceilings onforeign
investment. Later, however, inservice specific documents, Albania states thatinvestment inthe
telecom sector islimited to40percentwhile thelimitintheinsurance sector isstillbeing debated.
Please confirm what, ifany,limits there areoninvestment inthese twosectors.WT/ACC/ALB/23
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Answer:
Insurance Sector
According totheAlbanian Law"OnInsurance andReinsurance Activities" foreign companies
mayopenbranches orsub-branches with100percenttheirowncapital within theterritory ofAlbania.
Butaccording totheabove-mentioned lawtheforeign companies arelimited to40percentparticipation
intheinsurance shareholding companies. Taking intoconsideration thattheAlbanian insurance market
isquiteanewone,forprudential reasons itisnecessary tolimittheforeign participation insuchservices
onlyforshareholding companies.
Telecom Sector
Itisforeseen thattheAlbanian telecommunications agency willcontinue tobethemonopoly
provider ofbasic telecom services forabout eight years, inwhich timeAlbanian Telecom willbe
gradually privatized withtheparticipation ofastrategic partner. Butthere isstillnooneprecise
percentage ofthestrategic partner 'sshares.
Telecommunications
Question 121.
Pleaseclarifythemeaningof"astrategicpartner"insectionII.-Telecommunications-ofdocument
WT/ACC/ALB/14.
Answer:
Thedefinition of"strategic partners" provided forinthetelecommunications legislation isbased
onthetechnical andfinancial abilities ofthepotential investors intherespective field.
Transport
Question 122.
Inthesection onMaritime Transport (document WT/ACC/ALB/14) itisstated that"thelegal
framework formaritime transport services isstillbeing developed". Does itmean thatAlbania
isgoing toadopt lawsandregulations inthisfieldforthefuture? Ifso,please giveanoutline
oflawsandregulations which arelikely tobeadopted.
Answer:
AdraftoftheAlbanianMaritimeCode,whichrepresentsthebasiclegalframeworkformaritime
transport services, hasbeenprepared andithasbeensentforcomments totheInternational Maritime
Organization. AcopyinEnglish ofthisdraftwillbeprovided forcomments totheWorking Party.
Tourism
Question 123.
Ifapermit todevelop anareaisrejected bytheTourism Development Committee, isthere a
mechanism forappeal? Does theCommittee make public itsreasons forrejecting proposals?WT/ACC/ALB/23
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Answer:
Article 4ofLawNo.7665of21January 1993, "OnTourism Promoted Development Zones"
(WT/ACC/ALB/6) defines theprocedures ofapproval orrejection ofalicence. Thefirstdecision of
theTourism Development Committee isprovided officially totheinterested parties. Theinterested
parties under thelawareprovided withaperiod of90daystomake present theircomments andtheir
proposals onthedecision. After reviewing within 60daysallthecomments onthefirstrejection, the
Tourism Development Committee officially makes known itsfinaldecision.
IftheMinister oftheMinistry ofTourism finds thedecision oftheTourism Development
Committee notbased onthelaw,he/she hastherighttoreject it.