. RESTRICTED
WORLD TRADE WT/ACC/ALB/4
13February 1996
ORGANIZATION(96-0525)
Original: English
ACCESSION OFALBANIA
Additional Questions andReplies
totheMemorandum ontheForeign Trade Régime
(L/7613)
ThefollowingadditionalquestionsandrepliestotheMemorandumontheForeignTradeRégime
havebeenreceived from thePermanent Mission oftheRepublic ofAlbania.
_______________
TABLE OFCONTENTS
Section Page Question
II. ECONOMY AND FOREIGN TRADE REGIME 4
A. Economy 4
1. Economic environment: general description 4
(a) Geography, climate, population 4 1
(d) Division ofauthority between central andsub-central
governments4 2
2. Economic situation andpolicies 4-7 3-11
B. Foreign trade 7
2. Recent trade performance: volume, balance, structure,
dynamics7 12-13
III. FOREIGN TRADE REGIME 7
A. Import regulations 7
1. Evolution andoverview ofcustoms authority 7-8 14-19
2. Types ofduties 8-9 20-26
5. Tariff preferences 10 27-28
7. Taxation regime 10-11 29-30
8. Customs valuation 11-12 31-34
9. Rules oforigin 12-13 35-36
10. Customs formalities 13-14 37-42
11. Standards andcertificates 14 43-46
12. Sanitary andphytosanitary measures 15 47-48
B. Export regulations 15
2. Types ofexport taxes 15 49WT/ACC/ALB/4
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TABLE OFCONTENTS
Section Page Question
4. Export licensing system 16 50
C. Export subsidies 16-17 51-53
D. Regulation oftrade intransit 17 54
IV. POLICIES AFFECTING FOREIGN TRADE 17
A. Privatization 17 55-56
B. State foreign trading enterprises 17-18 57-62
C. Fiscal, monetary andbudgetary policy 19 63-64
D. Foreign exchange system 19 65
E. Banking system 19 66
F. Industrial policy 20 67
G. Foreign investment policy 20 68
H. Government procurement 20-21 69-75
I. Agricultural policy 21-24 76-85
J. Tourism 24 86
K. Subsidy policy 24 87
L. Freetrade andeconomic zones 24 88
V. TRADE AND ECONOMIC RELATIONS WITH THIRD
PARTIES24
C. Preferential trade arrangements orother special trade
arrangements andagreements24-25 89
VI. LAWS AND LEGAL ACTS 25
B. Listing ofkeylawsandother legalacts 25 90
SERVICES 25
Financial Services 25-26 91-93
Telecommunications 27 94-97
Maritime Transport 27 98-102
Other Means ofTransport 27-28 103
TRIPS 28 104-105
Patents 29-31 106-112
Semi-Conductors 31 113-114
Trademarks 31-32 115-122
Industrial Designs 32 123-124
Trade Secrets 33 125
Competition andAnti-Trust 33 126-127
Enforcement 33 128-129WT/ACC/ALB/4
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TABLE OFCONTENTS
Section Page
Attachment 1ORGANIZATION AND STRUCTURE OFTHE ALBANIAN
GOVERNMENT34
1.TheState 34-35
2.Juridicial Authority 35-36
3.Legislative Authority 36-38
4.Executive Authority 38-43
5.Other Institutions 44
6.Public Service Delivery System 44-45
Attachment 2RECENT TRADE PERFORMANCE 46-49WT/ACC/ALB/4
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II. ECONOMY AND FOREIGN TRADE REGIME
A.1(a) Geography, Climate, Population
1. IsAlbania classified asaleastdeveloped country bytheUnited Nations?
Currently, Albania isclassified asadeveloping country bytheUnited Nations Development
Programme, except forsome UNDP programmes forwhich Albania isclassified asaleastdeveloped
country. Albania hasapplied for"least-developed country" status withUNDP andisawaiting adecision
onthismatter.
A.1(d) Division ofAuthority
2. Please provide further information regarding theexisting administrative structure in
Albania: ministries andassociated agencies atthecentral level, local andregional authorities.
Please seeAttachment Iforacomplete description ofAlbania 'sadministrative structure.
A.2 Economic Situation andPolicies
3. Aneconomic stabilization andreform programme wasinitiated in1992. Wewould be
interested tolearn more details about thisprogramme.
4. Isthe"comprehensive economic stabilization andreform programme (established inmid-
1992) stillinexistence? Ifso,would youplease describe what isstillineffect.
Albania 'seconomic stabilization andreform programme isstillineffect. Withtheachievement
ofbasic stabilization, theemphasis oftheprogramme hasshifted tostructural reforms. Nevertheless,
thegovernmentremainsmindfuloftheimportanceofmaintainingastablemacro-economicenvironment,
andwillcontinue itsefforts inthisdirection.
Fiscal andmonetary control, along withprice andexchange liberalization arestillthemain
pillars ofeconomic stabilization policy. Over thepastfiveyears, thebudget deficit asapercentage
ofGDPhasdeclined steadily from30percentin1991, to22percentin1992, toabout 10to12percent
in1993, 1994 and1995. Thegrowth ofmoney supply (M2) hasbeenrelatively steady overthepast
twoyears (43percentin1994; 54percentin1995). Thisexpansion hashelped tofuelaneconomy
which continues toshow strong realgrowth: 9.6percentin1993, 9.4percentin1994 and
11.3percentin1995. Thelek,which continues tofloatfreely, showed remarkable stability throughout
1994 (95perU.S.dollar) and1995 (93perU.S.dollar).
Intheexternal sector, Albania 'strade deficit isstilllarge butslowly declining (23percent
ofGDPin1994, 20percentin1995) .Thetradedeficit hasbeenfunded bysizeable remittances from
Albanians living abroad -estimated atabout US$350 to400million peryear-andofficial transfers.
Thecurrent account deficit hascontinued todecline: 5percentin1995 versus 15percentin1994
(notincluding public transfers).
Themost important structural andlegalreforms of1995 included:
- liberalization oflandsales;WT/ACC/ALB/4
Page5
- thepassage ofalawallowing Albanians topurchase andsellagricultural landprovided
thebasisforamoreefficient allocation ofresources andgrowth intheagriculture sector;
- privatization oflarge scale enterprises;
- in1995, thegovernment initiated itsprogramme toprivatize atotalofabout 350large
scale enterprises -acritical steptowards revitalizing Albania 'sindustrial sector. In
thelastquarter of1995, about 20large scale enterprises wereprivatized. Thiswill
befollowed byasecond wave ofabout 30firms inearly 1996;
- liberalization ofthefinancial sector;
- thepassage ofnew, liberal regulations onthelicensing ofprivate banks should
encourage theestablishment ofprivate domestic andforeign banks. This, together
withthepassage ofalawproviding forthefuture saleofState-owned banks, will
encourage therestructuring ofthiscritical sector in1996;
- passage oflawsonbankruptcy andcompetition.
Thepassage ofthesetwolawshelps complete thenecessary legalframework forprivate entrepreneurial
activity.
5. Ifimport duties arereduced under theWTO, howwilltheState compensate forthereduced
revenue initsbudget?
6. TheGovernment ofAlbania states thatduties onimports areanimportant source of
revenue. Isthisatransitional policy?
Itisdifficult toanswer thefirstquestion withprecision untilbilateral talksontariff bindings
begin, which willgiveanideawhether import duties needtobereduced under theWTO, andifso
byhowmuch. Atthispoint, wewould notethatallcountries facing theprospects ofreduced import
duties -whether thatbetheresult ofjoining theWTO orconcluding amultilateral round oftrade
talks-mustconsider theimplications forbudget revenues. Inaddition, while lowering duties would
result inlessbudget revenue intheshort term, itmayalsoresult inmore revenue inthemedium and
longterms ifthiscontributes toeconomic growth.
Regarding thesecond question, thisisnotsomuch apolicy asareality thatresults from the
relatively undeveloped stateofother mechanisms forraising revenues suchasthrough corporate and
personal income taxes. Albania isworking hardtoimprove those other mechanisms. Weexpect that
ourexperience willbesimilar tothatofother countries andthat,overtime, revenues from customs
duties willgradually decrease asashare oftotalrevenues, thereby reducing theneedtorelyoncustoms
duties asasource ofbudget revenue.
7. TheGovernment ofAlbania saysthatprivate traders nowhandle approximately halfof
allexports andimports.
8. Who handles theother half? Isthisdone byState enterprises?
Yes,although theportion handled byState enterprises isnowlessthanhalf.WT/ACC/ALB/4
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9. IsitthegoalofAlbania forprivate traders tohandle alloftheexports andimports?
Yes,oneofAlbania 'strade policy goals isforprivate traders tohandle virtually all,ifnot
all,exports andimports. Thisfollows from ourobjectives toprivatize allState trading enterprises
andvirtually allState-owned enterprises.
Thefollowing dataforthefirsthalfof1995 show thatAlbania continues tomake progress
inreducing theroleoftheState inexporting andimporting. During thatperiod, theprivate sector
accounted forapproximately 56percentofexports and82percentofimports.
Export(million lek) Percentage ofTotal
Private Sector 4828.0 56
Public Sector 3691.8 44
Total Export 8519.8
Import (million lek) Percentage ofTotal
Private Sector 23978.8 82
Public Sector 5257.6 18
Total Import 29236.4
10. Itisnoted thatprivate traders handle approximately halfofallexports andimports. What
percentage ofthese traders areforeign?
Wedonothavegood dataontheshare offoreign importers andexporters asapercentage
oftotalimports andexports. Itislikely thatthepercentage isnotveryhighatthepresent, butis
significant andsteadily growing. Thisreflects thefactthatmuch trade, especially imports, iscarried
outbysmallandmedium-sizedAlbaniantradersinconsumables.However,giventheslowlybutsteadily
increasing levels offoreign investment, andthetradecreation effects associated withforeign investment,
theshare of"foreign" trade isincreasing, especially ontheexport side.
However, wewould liketonotethatwethink there aresome difficulties, indeed hazards,
associated withtrying todivide traders intotwogroups -foreign anddomestic -asthequestion implicitly
does. What isaforeign trader? There aremany jointventures inAlbania, some withmajority foreign
participation, some minority, some equally divided. Moreover, allcompanies registered inAlbania
areconsidered legalAlbanian entities, regardless oftheirownership structure, andaregiven fullnational
treatment. Accordingly, wethink itismore appropriate, andmore consistent withWTO principles,
tode-emphasize traditional concepts ofdomestic versus foreign traders (usversus them), andto
emphasize thecreation ofequal opportunities andlegalconditions foralleconomic operators inAlbania,
regardless oftheirorigin.
11. TheMemorandum states thatnewand"pioneer" products arebeing developed forexport.
What incentives areprovided forcompanies wishing todevelop andexport suchproducts?WT/ACC/ALB/4
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Joint ventures orforeign firms engaged inconfection (facon) activity benefit from reduced
import tariffs onimported parts. Jointventures orforeign firms engaged inproductive activity, whether
confection orother, areexempt from profit taxduring thefirstfouryears ofoperation.
B.2 Recent Trade Performance
12. TheMemorandum states thatAlbania 'smain exports (fuels, minerals andmetals, and
fruits, vegetables andmeats), together comprised 27percentofexports in1993. What makes
uptheother 73percentofexports?
Duetodifficulties inthedatacollection process, more complete information for1993 isnot
available.
13. Please provide anyavailable trade statistics for1994.
Trade statistics for1994 and1995 arepresented inAttachment 2.
III. FOREIGN TRADE REGIME
A. Import Regulations
A.1 Evolution andOverview ofCustoms
14. Goods imported intoAlbania aresubject toimport duties. Please indicate whether there
aremaximum levels ofimport duties authorized bylawandwhoisempowered tomodify them.
Albanian lawdoesnotestablish maximum levels ofimport duties. TheAlbanian tariffschedule
provides forseveral different levels ofimport duties. TheAlbanian Parliament isempowered tomodify
thetariff schedule. Currently, themaximum dutyinthisschedule is40percent. Theother levels
are7and25percent.
Itappears, from theinformation provided, thatAlbania 'sCustoms Office actsasageneral
taxcollecting authority andisnotlimited tothecollection ofduties andtaxes attheborder. Isthis
correct?
TheCustoms Office doescollect certain taxes other thancustoms duties, suchastheroad
circulation taxforforeign vehicles entering Albania temporarily, butitisnotageneral taxcollecting
authority.
Depending onthecommodity, thecollection maytakeplace attheborder orataninternal
customs office. Attheborder, duties arecollected onvehicles andcigarettes. Duties onother
commodities arecollected atinternal customs offices.
15. How doestheCustoms Office collect excise taxes ongoods produced inAlbania?
TheCustoms Office doesnotcollect excise taxes ongoods produced inAlbania. Thisisthe
responsibility oftheTaxation Department intheFinance Ministry.WT/ACC/ALB/4
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16. What isthedistinction between the"turnover taxoncommodities incirculation," and
the"circulation taxes"? Onwhat basis are"road taxes" assessed?
The"turnover taxoncommodities incirculation" refers toataxoncommodities thatcirculate
inaneconomic sense (through sales), whereas the,"circulation tax", alsoknown asa"road tax"or
"road circulation tax"isataxonforeign vehicles circulating temporarily onAlbanian roads. This
taxisassessed onthebasis ofthenumber ofdaysthattheforeign vehicle remains inAlbania.
17. TheMemorandum notes certain other taxes collected fortheaccount ofother State
administrations, including taxes onforeign vehicles. Please explain theapplication andrate(s)
oftaxon"foreign vehicles incirculation." Does Albania produce vehicles? Ifso,doesthistax
discriminate against foreign vehicles?
Asnoted above, thetaxisapplied based onthenumber ofdaysthevehicle remains inAlbania.
Albania doesnotproduce vehicles.
18. What aretheamounts andwhat isthebasis ofassessment ofairport taxes onlocal and
foreign passengers?
Each Albanian national pays500lek(about US$6),while eachforeign paysUS$10.
19. Doesthetableof"weighted average tariff levels forthemain commodity groups" contained
inthissection include the5percentsurcharge?
Thetableof"weighted average tarifflevels formaincommodity group" includes the5percent
surcharge.
A.2Types ofDuties
20. Albania maintains service tariffs forCustoms services. What aretherates ofthese tariffs
andhowaretheycalculated andapplied? TheWTO requires thatsuchservice charges reflect
theactual costofservices rendered andthat, inpractice, anacross-the-board advalorem charge
doesnotmeet thiscriteria.
TheCustoms Code provides thattheCustoms Office maycollect some tariffs forservices
rendered. Until now, suchtariffs havenotbeenapplied.
21. Does theGovernment ofAlbania plantoconvert thecompound dutytoeither advalorem
orspecific?
TheCustoms Code provides forthepossibility ofcollecting compound duties. Inpractice only
advalorem duties areapplied.
22. Please provide copies ofdomestic anti-dumping duty, countervailing dutyandsafeguard
lawswhere these exist, andadetailed summary inaGATT language. Please supply details of
anysuchmeasures inforce.
TheTariff Lawprovides foranti-dumping andcountervailing duties (articles 13and14).
Article 13states: "Anti-dumping customs duties canbeapplied when goods areimported intoAlbania
withaprice much lower thanthecompetitive price ofgoods intheexporter country (atthetimeofWT/ACC/ALB/4
Page9
exporting) andifsuchimported goods damage orhavethepotential todamage national producers of
thesame orcompeting goods, oriftheimports result indecrease ordiscontinuation ofproduction of
thesame goods intheRepublic ofAlbania.
Article 14states: "Countervailing duties willbeapplied when goods imported intotheRepublic
ofAlbania areproduced, orworked oninsome waytoaddvalue totheproduct withthesupport of
direct orindirect subsidies, andifsuchimports damage orhavethepotential todamage national
producers ofthesame orcompeting goods, oriftheimports result indecrease ordiscontinuation of
production ofthesame goods intheRepublic ofAlbania."
23. How willtheGovernment ofAlbania conduct investigations ofunfair trade practices?
DoestheGovernment ofAlbania haveanti-dumping legislation? Howaretheanti-dumping duties
andcountervailing duties calculated? What isthebasis forthecalculation? HastheGovernment
ofAlbania initiated anyanti-dumping/countervailing cases? Ifso,please provide alistofthem.
Albanian lawprovides foranti-dumping duties andcountervailing duties, ascited above.
However, therearenoimplementing regulations thatdefine howinvestigations ofunfair tradepractices
aretobeconducted, howanti-dumping andcountervailing duties aretobecalculated andthebasis
fortheircalculation.
Albania hasnotinitiated anyanti-dumping orcountervailing cases.
24. TheMemorandum mentions thatexplanatory notes forthecustoms nomenclature will
becompleted byJuly1995. What progress hasbeen made onthis? Please provide acopy as
soonaspossible.
Itisexpected thattheexplanatory notes willbecompleted andenter intoforce inearly 1996.
25. What areAlbania 'sintentions concerning near-term changes totariff rates, reportedly
setatlevels of0,5,20,and3percent? Does Albania haveplans toraiseitsapplied tariffs? Does
theGovernment ofAlbania believe thatitwillneedtoinvoke safeguard measures onagricultural
products?
Withtherecent modification ofAlbania 'stariffschedule, which cameintoforceon1July1995,
Albania doesnotcontemplate additional changes inthenear-term.
Regarding theneedforinvoking safeguard measures onagricultural products, thisdepends
onthefuture evolution ofagricultural imports anditseffect ondomestic production. Given the
importanceoftheagriculturesectorfortheAlbanianeconomytheGovernmentwillmonitorthesituation.
Itisexpected thatanyinvocation ofsafeguard measures would beinjustifiable circumstances. Itis
worth noting thattheGovernment hasnotmade useofsafeguard measures, despite thefactthat
agricultural imports (aswellasnon-agricultural) havegrown significantly overthepastseveral years.
26. Thesecond chart inthissection shows thattheaverage agricultural tariff is15.8percent,
buttheprevious page indicates thatthehighest agricultural tariff level is10percent. Please
explain.
Thissection shows theevolution oftariffs, andtherefore includes tariff levels from different
periods. Thechart onpage12,indicating aweighted average tariff levelof15.8percent, refers to
tariffs in1993. Thetariffs ontheprevious pagearefrom 1991.WT/ACC/ALB/4
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A.5 Tariff Preferences
27. TheForeign Trade Memorandum states thatAlbania currently issues notariff preferences.
IsAlbania contemplating anyagreements, schemes, orarrangements thatwould leadtoitgranting
tariff preferences? Ifso,please provide details.
During thecourse of1995, Albania began discussions withrepresentatives oftheEuropean
Union about theprospects ofAlbania concluding anAssociation Agreement withtheEU.Under the
terms ofsuchanagreement, Albania might berequested togrant tariff preferences bytheendofa
transition period. These discussions arestillatanearly stage.
28. Which goods areexcluded from customs duties which areinvolved inprogrammes funded
withcredits withfavourable terms?
TheLawonCustoms Tariffs (number 7609of22September 1992asamended bylawsnumber
7675, of2March 1993, 7790 of9February 1994, 7936 of18May1995 article 20)provides thatall
commodities included inprogrammes funded withcredits withfavourable terms areexcluded from
customs duties. Inpractice, thiscovers abroad range ofgoods -forexample, grain, materials for
roadconstruction, water andelectricity distribution, etc.-reflecting thefullrange ofAlbania 's
development efforts funded bynational andinternational financial institutions.
A.7 Taxation Regime
29. Who determines property values fortaxation purposes?
InAlbania, twokinds ofproperty -agricultural landandbuildings -aresubject toproperty
taxes. Oneimportant category ofproperty, non-agricultural land, isnotsubject toproperty taxyet
because thequestion ofownership hasnotbeensettled.
Thetaxrateforagricultural landandforbuildings isdetermined bytheLawonProperty Tax
intheRepublic ofAlbania (No. 7805 of16March 1994, asamended on5September 1994 and
11May1995).
Regarding agricultural land,thetaxrateisbased onasystem oflandclassification, which takes
intoconsideration fertility, location, etc. Thisclassification consists of10different categories of
agricultural land, eachsubject toadifferent annual taxrateperhectare, ranging fromapproximately
US$15perhectareforthelowestcategory,toUS$60perhectareforthehighestcategory.Categorization
isdetermined bytheMinistry ofAgriculture.
Regarding buildings, thetaxrateisbased onsurface area,location (whether incitiesorvillages),
andthekindofactivity taking place inthebuilding. Accordingly, buildings areclassified fortax
purposes as:(1)residential buildings incities (6lekpersq.meter) orvillages (2lekpersq.meter);
(2)buildings forhealth services, manual craftwork andcommunal services (4lekpersq.meter) ;
(3)buildings forcommercial trade orother services (100 lekpersq.meter); (4)buildings for
manufacturing (50lekpersq.meter); and(5)buildings ofapublic nature, suchasStateadministration,
social orcultural activities, health, education, sport orreligion (2lekpersq.meter). Categorization
istheresponsibility oftheMinistry ofFinance.WT/ACC/ALB/4
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30. Why aretobacco andunprocessed leather charged anexcise taxwhen theyaredestined
forexport andnotconsumed? DoestheGovernment ofAlbania plantoeliminate theexcise taxes
onother commodities upon accession totheWTO?
Theexcise taxonexports oftobacco andunprocessed leather hasbeenabolished.
A.8 Customs Valuation
31. Please provide acopyoftheCustoms Code andadetailed summary inaWTO language.
Acopy oftheCustoms Code, inFrench, hasbeenprovided totheSecretariat. Adetailed
summary oftheCustoms Code follows.
TheCustomsCodeconsistsoffourchapters:(1)functionandorganizationofthecustomsagency;
(2)arrival andpresentation ofcommodities atcustoms, andcustoms control; (3)customs procedures;
and(4)violations andcontraband.
Thefirstchapterhastensections,mostofwhichdefinetheorganizationandfunctionsofcustoms
offices aswellasthedefinition ofcustoms territory, customs zones, theduties ofcustoms agents, etc.
Thelastsection provides thattheMinistry ofFinance, inco-operation withother ministries, defines
which commodities theimport, export ortransit ofwhich areprohibited forreasons ofpublic order;
protection ofhuman, animal andplant health; protection ofnational scientific, artistic, historical and
archaeological wealth; andtheprotection ofindustrial andtrade property.
Thesecond chapter hastwosections. Thefirstsection consists ofgeneral provisions onthe
declaration ofgoods, whoisresponsible formaking suchdeclarations, theperformance ofcustoms
control attheborder (including sea,airandlandentry points) fortravellers andcommodities. The
second section dealswiththepresentation ofcommodities atthecustoms office, andincludes provisions
ondocumentation thatshould bepresented atthecustoms office, bywhom documents should besigned,
andtheobligations oftransport providers. There arealsoprovisions oncustoms control procedures
forsome particular commodities, suchaselectric power andpetroleum.
Thethirdchapter hassixsections. Thefirstsection describes thedetailed declaration ofthe
import orexport -where thedeclaration should bedeposited, whoshould declare theshipment indetail,
andtheresponsibilities ofthedeclarer. Thissection includes technical information on,forexample,
thenumber ofcopies ofthedeclaration thatareneeded, acceptance andregistration procedures for
thedeclaration, etc.Thesecond section describes procedures fortheverification ofgoods (partial
ortotal), whoshould bepresent during theverification, etc.Therightofappeal anddispute settlement
proceduresaresetout.Thethirdsectiondealswithinternationalmailingandcustomscontrolofbaggage.
Thefourth section defines theregime thatapplies togoods notdestined fordomestic consumption,
notably goods which areimported temporarily forprocessing andthenre-exported (facon). Thefifth
section deals withtheimposition ofcustoms duties, notably howtheyarecalculated, andwhen and
where theyshould bepaid.
Chapter fourdeals withtheproblems ofviolation ofcustoms requirements, contraband and
penalties. Hereisadescription ofwhatisconsidered contraband, which activities constitute aviolation
ofcustoms requirements, therightofthecustoms office tocontrol shipments, tosequester goods, and
toarrest persons engaged inthetraffic ofcontraband orother criminal activities. Finally, penalties
forcustoms violations, thedistribution ofincomes arising frompenalties, andprocedures forappealing
theimposition ofpenalties aredefined.WT/ACC/ALB/4
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32. Minimum prices have been established foranumber ofcommodities. How arethese
minimum prices set?Who isempowered tomodify these prices? Under what circumstances and
howfrequently domodifications takeplace? Isthere aright toappeal iftheCustoms Office
contradicts thepurchase price presented bytheimporter?
Minimum prices arecalculated using amethod similar tothedeductive method. Accordingly, inorder
toestablish theminimum priceofanimported commodity, import duties andother taxesaresubtracted
from thedomestic wholesale price ofthesame commodity (previously imported) thatisoffered for
saleonthedomestic market.
TheCouncil ofMinisters hastheauthority toimpose andmodify minimum prices.
Modifications takeplace according tochanges ininternational prices.
Forcommodities thataresubject tominimum prices, theimporter doesnothavetherightof
appeal iftheCustoms office contradicts thepurchase price presented.
TheMemorandumstatesthatcustomsauthoritieshaveoftenencounteredtheproblemofimporters
presenting receipts indicating alower price thantherealpurchase price oralower price thanwhat
isconsidered tobetherealvalue. TheCustoms Office isauthorized tocontradict thepurchase price
presented bytheimporter intheevent itislower thanaminimum price.
Please listthegroups ofcommodities thataresubject tosuchminimum prices. CantheCustoms
Office contradict thepurchase priceforanyother commodities besides these. Ifso,whatcriteria does
theGovernment ofAlbania usetodetermine purchase price.
ThelistofcommoditiessubjecttominimumpriceshasbeenprovidedinAlbania'sMemorandum
onForeign Trade Regime. (SeeAnnex E,"Minimum Prices forImports.")
Forcommodities thatarenotmentioned intheminimum pricelist,theCustoms Office cannot
contradict thepurchase price declared bytheimporter.
33. What steps isAlbania taking tobring itscustoms valuation procedures andregulations
intoconformity withtheWTO Customs Valuation Agreement?
34. HasAlbaniaprovidedacopyofitscustomsvaluationlawforreviewbytheWorkingParty?
TheMinistry ofIndustry, Transport andTrade hasprepared adraftlawontransaction value
which isbased substantially ontheWTO Customs Valuation Agreement. Thisdraftisbeing reviewed
bytheCustoms Agency andother ministries.
Acopyofthedraftlawwillbesubmitted totheWorking Party forinformation.
A.9.Rules ofOrigin
35. Regarding proof oforigin, isthere aformal Certificate oforigin required forallimports?
36. Please provide thespecific rules oforigin forimports. Who hasauthority todetermine
whether animport hasmetthe"principle transformation" determination? What investigative
procedures arefollowed indisputing animporter 'sorigin claim?WT/ACC/ALB/4
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There isnoformal Certificate ofOrigin required forimports. OntheGeneral Administrative
Document required (seeIII.A.10 below) thecountry oforigin isindicated forpurposes ofstatistical
andsanitary/phytosanitary control, and,untilrecently, forpurposes ofcompliance withtheembargo
against parts oftheformer Republic ofYugoslavia. Since Albania doesnotgiveGSPorother trade
preferences, ithasnotsetupspecific procedures orinstitutions fordetermining origin.
A.10 Customs Formalities
37. Please provide further details onthe"general administrative documents" which importers
must submit atthedestination customs office.
The"General Administrative Document" required bytheAlbanian Customs authority is
comparable tothe"General Administrative Document" usedintheEuropean Union. TheDocument
consists ofaform onwhich theimporter orexporter provides information about thenature ofthe
commodity, thevalue, quantity, etc.
38. Please explain thedifference between a"Declaration ofInternal Transit anda"General
Administrative Document". What information isrequired foreach?
TheGeneral Administrative Document ispresented attheborder and,asnoted above, includes
informationthenatureofthecommoditytobeimported,value,quantity,etc.TheDeclarationofInternal
Transit isthedocument needed forshipment fromtheborder totheinternal customs office. Itincludes
aninsurance guarantee which guarantees payment intheevent thattheimporter ortheimporter 'sagent
failstopaythecustoms duties attheinternal customs office.
39. Alldocuments must beintheoriginal. Arethere anylanguage/translation requirements?
Generally, documents maybepresented intheiroriginal form. Inexceptional cases, thecustoms
office mayaskthatthese documents betranslated intoAlbanian andnotarized.
Albania describes customs clearance asatwo-step process involving border clearance and
shipment toacustoms office fordetailed inspection.
40. Isthisdetailed inspection incompliance withthePre-Shipment Inspection Agreement under
theWTO? Willitbeinthefuture?
Webelieve thatthisinspection process isincompliance withthePre-Shipment Inspection
Agreement under theWTO. Wewelcome anexchange ofviews onthisifthemember countries so
desire.
41. Thisseemstorequireextrahandlingofashipment,aswellasextrainsurancerequirements.
Isthisarrangement designed toincrease efficiency?
Thisarrangement isintended toincrease efficiency. Given thefactthatthere areonlyafew
border entry points (four), ifallcustoms work werehandled attheborder, itwould result insignificant
delays. Under thecurrent arrangement, theborder control consists essentially ofacontrol ofdocuments
andageneral visual control oftheimport, whereas detailed inspection takesplace attheinternal custom
offices.WT/ACC/ALB/4
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42. Who issues the"insurance guarantee"? Areexporters aware ofthisrequirement? Please
clarify whoneeds tobepresent during customs control -theimporter 'sagent orexporter 'sagent.
Insurance guarantees areissued bya"customs agent". Acustoms agent isaprivate company
licensed bytheAlbanian Customs Agency tofacilitate import andexport activities.
Either theimporter ortheimporter 'sagent needs tobepresent during customs control.
A.11.Standards andCertificates
TheMemorandumstatesthattheAlbanianCustomsOfficerequiresthesubmissionofacertificate
attesting thattheimported good meets certain quality standards.
43. Arethese standards published? Arethese standards based oninternational standards?
Arethey consistent with theWTO Technical Barriers toTrade? Ifnot,what steps isthe
Government ofAlbania taking toconform totheTBT?
Thestandards arepublished. Asmall percentage arebased oninternational standards. The
Albanian Government, through theDepartment ofStandardization andQuality, isworking onthefurther
development ofinternational standards. Theobjective ofAlbanian standards -bothexisting onesand
those being developed -istoensure health andsafety without creating anytechnical barriers totrade.
Towards thisend,theDepartment ofStandardization andQuality hasbeenprovided acopyoftheWTO
provisions onTechnical Barriers toTrade.
44. What arethecurrent minimum quality standards required forthese imports?
Acomplete listing ofthecurrent minimum quality standards forallimports intoAlbania runs
many pages. Forexample, intheagriculture area, there areapproximately 500standards ineffect.
Please confirm whether theWorking Party needs acomplete listing.
45. Who isauthorized toprovide quality certificates forimports? TheDepartment of
Standards? How doesanexporter obtain these certificates?
Quality certificates arenotprovided byanAlbanian institution butbytheforeign exporter.
TheCustoms Agency verifies whether theexporter hasprovided suchacertificate, andiftheCustoms
Agency hasdoubts whether thequality oftheimport meets Albanian standards orthatthecertificate
isfalse, itmayrequire aninspection toverify thequality oftheshipment.
46. Why aresome agricultural products required toundergo laboratory analysis? Isthisnot
thepurpose ofthequality standards? Whodetermines which products willundergo thislaboratory
testing?
Laboratory analysis isrequired forsome agricultural imports intheevent there isareason
todoubt thattheimport isinconformity withquality standards. There isaserious problem ofunsafe
agricultural andmedicinal products being exported toAlbania. Adetermination about which products
needtoundergo laboratory testing ismade byrepresentatives from theMinistry ofAgriculture and
theMinistry ofHealth.WT/ACC/ALB/4
Page15
A.12.Sanitary andPhytosanitary Measures
47. Whyareallanimals andstock-breeding products required toundergo bothprior veterinary
control attheborder andataninterior veterinarian control centre? Who determines when/if
these veterinarian controls have beenmade? Arethere published guidelines explaining what is
needed forpassage through bothcontrols?
Theveterinary controls attheborder andataninterior centre havewhodifferent objectives.
Theborder control isintended toensure thatproducts infected withdiseases which poseapublic health
riskdonotenter thecountry. Forexample, animal imports arecontrolled toensure thattheydonot
come from acountry where there isanoutbreak ofdisease, suchasrinderpest, which could infect
allAlbanian livestock andposeathreat topublic health. These areso-called "Group A"diseases
according totheWorld Health organization andtheInternational Alimentary Code. Theinterior control
isintended toensure thataspecific product isnotinfected withsomething thatposes athreat toindividual
health, so-called "Group B"diseases.
TheVeterinary Department oftheMinistry ofAgriculture andhealth representatives fromthe
relevant municipality determine whether these veterinary controls havebeenmade.
Information about whatisneeded forpassage through bothcontrols canbeobtained fromthe
veterinary Department oftheMinistry ofAgriculture.
Why andhowaretheimports controlled inaspecialized independent laboratory toensure
conformity withstandards, etc.? Would itnotbemore efficient torequire SPScertificates? Who
determines thestandards which needtobemet?
Albania hasexperienced theproblem ofothercountries exporting commodities toAlbania which
donotmeettheirdomestic standards orinternational standards. Albania hasbeen, incertain cases,
adumping ground forunsafe orunhealthy products. Thishasobliged ustoadopt control procedures
which mayseem, atfirstglance, redundant. Thesanitary andphyto-sanitary standards which need
tobemetaredetermined bytheMinistries ofAgriculture andHealth.
48. Does theGovernment ofAlbania recognize international sanitary andphytosanitary
standards? IstheGovernment ofAlbania amember ofCodex Alimentarius Commission (CODEX)
ortheInternational Plant Protection Convention (IPPC)? Ifnot,doesitplantojoin?
Albania recognizes international sanitary andphyto-sanitary standards. Albania isamember ofCODEX
andIPPC.
B.2. Types ofExport Taxes
49. Why areexcise taxes imposed onexports ofunprocessed leather andtobacco atarate
ofabout 100percentoftheir customs value? This seems excessive. Were these excise taxes
eliminated asindicated?
Theexcise taxonexports oftobacco andunprocessed leather hasbeenabolished.WT/ACC/ALB/4
Page16
B.4. Export Licensing System
50. Isthelistofproducts requiring alicence andprohibited products complete? Arethegroups
thatarelisted theresults from 1994? Arethere anyplans tofurther expand thecommodities
withexport licensing requirements? Iseachitemconsidered agroup orarethere onlythree groups
thatfallunder thelicensing requirement andprohibited category?
Currently, nocommodities aresubject toexport licence. Albania 'saimisthefullliberalization
ofexport activity. Albania hastaken considerable steps toeliminate export licensing requirements
andprohibitions. Indeed, theexport regime hasbeen completely liberalized, except forexport
prohibitionsoncertainwoodproductsandscrapmetals,asfollows.(DecisionoftheCouncilofMinisters
number 360of10July1995):
- firewood;
- unprocessed wood;
- sawed wood andbeams;
- waste andscrap precious metals;
- waste andscrap ironandsteel;
- waste andscrap copper;
- copper ingots;
- waste andscrap nickel;
- waste andscrap aluminium (except forwaste aluminium packaging, suchasaluminium
cansforsoftdrinks, which hadbeenimported);
- waste andscrap lead;
- waste andscrap zinc;
- waste andscrap tin.
C. Export Subsidies
51. Albania states onpage17thatitdoesnotmaintain export subsidies. IsAlbania prepared
toreflect thisinitsschedule ofexport subsidy commitments foragriculture? (Australia)
Before making adecision onthecommitments thatwewould make intheagriculture schedule,
aswellasotherschedules, wewould liketheopportunity toconduct bilateral discussions withinterested
countries.
52. Isitcorrect thatAlbania doesnotmaintain export subsidies toprivate industry orthrough
State-run mechanisms?
Yes,itiscorrect.
53. What constraints does Albania have forimporting significant quantities ofoiland
petroleum? Whymust thetobacco usedinthedomestic tobacco processing industry bedomestic?
Arethere prohibitions against importing tobacco intoAlbania?
Theonlyconstraints thatAlbania hasregarding theimport ofsignificant quantities ofoiland
petroleum arefinancial constraints. There arenorestrictions onsuchimports.WT/ACC/ALB/4
Page17
Regarding tobacco, there arenoprohibitions against importing tobacco products intoAlbania. The
import tarifffortobacco is7percent,thelowest one.Tobacco usedinthedomestic processing industry
isnotrequired tobedomestic one.
D. Regulation ofTrade inTransit
54. What isaroadtax? Howmuch isit?Howisitcalculated andassessed forcommodities?
Theroadtaxisataxonforeign vehicles circulating temporarily onAlbanian roads. Thistax
isassessed onthebasis ofthenumber ofthedays, thattheforeign vehicle remains inAlbania.
IV. POLICIES AFFECTING FOREIGN TRADE
A. Privatization
55. TheMemorandum states thatfiftypercentofsmall andmedium enterprises hadbeen
privatized bytheendof1993. What arethecurrent figures forsmall, medium andlarge
enterprises? Doanyofthefirms, enterprises, co-operatives thathavebeenprivatized retain any
share ofState ownership?
Through October 1995, atotalof34,300 small andmedium sized State enterprises (uptoa
value ofUS$500,000) have been privatized withatotalvalue ofUS$73million. Afewlarge
enterprises (value overUS$500,000) havebeenprivatized.
Thefirms which havebeenprivatized untilnow-virtually allofwhich aresmall andmedium
enterprises -donotretain anyshare ofState ownership. These firms were privatized byauction.
Thelegislation onprivatization byauction doesnotprovide forStateownership. Large firms, however,
willbeprivatized inadifferent way. Theywillfirstbetransformed intojointstock companies inwhich
theStatecanretain ownership shares. ThelevelofStateownership inaparticular enterprise willbe
determined bythelineministry.
56. Please elaborate ontheGovernment ofAlbania 'spolicies andlaws regarding price
liberalization.
Asnoted intheMemorandum (section II.A.2)price liberalization isoneofthemain pillars
ofAlbania 'seconomic reform programme. Theonlyremaining pricecontrols andsupport mechanisms
concern afewbasic foodcommodities (bread, flour, grain) andpublic services (electricity, water,
municipal transportation, telecommunication, medicines). Albania intends topursue further price
liberalization. Theprivatization ofcertain public services, suchastelecommunication andelectric
power, willcontribute tothiseffort. Foradditional information onprice controls intheagriculture
sector, please seesection IV.I.
B. State Foreign Trading Enterprises
57. Asstated intheMemorandum, privatization ofState foreign trading enterprises wasto
becompleted bytheendof1994. Istheprocess complete? Ifnot,what isthecurrent rateof
privatization oftheSFTEs?
Theprocess isnotcomplete. Ofthetotal13SFTEs existing intheprevious regime, 2(1
agriculture and1lightindustry) havebeencompletely privatized, 6(1agriculture and5lightindustry)WT/ACC/ALB/4
Page18
areinthelaststeps ofprivatization andtheremaining 5(1agriculture, 1mineral resources, 1
construction, 1defence, 1lightindustry) areintheprocess ofprivatization. Itisintended thatallof
them willbeprivatized.
58. What willtheGovernment ofAlbania doconcerning theforeign debtincurred bySFTEs
under theprevious regime?
TheforeigndebtincurredbySFTEsunderthepreviousregimehasbeenassumedbytheAlbanian
government. Thisdebtnolonger exists onthebooks oftheindividual SFTEs andtherefore isnot
anobstacle totheirprivatization. Thegovernment isconducting negotiations withforeign creditors,
bothpublic andprivate, toresolve alloutstanding issues concerning foreign debt. Amajor stepforward
wasaccomplished in1995when Albania anditsprivate foreign creditors agreed onadebtrescheduling
package.
59. Please provide further details ontheprivatization offormer agricultural SFTEs? Dothese
former SFTE 'sstilldominate trade intheir specific commodity groups? Willtheremaining
agricultural SFTEs follow asimilar process?
OfthethreeagriculturalSFTEs,AGROEKSPORThasbeencompletelyprivatized,EKSIMAGRO
isinthefinalstepsofprivatization, andALIMPEKS ismore thanhalffinished withprivatization steps.
These Enterprises playaminor roleinAlbania 'sagricultural trade. Forexample, ALIMPEKS
conducts lessthan10percentofinternational tradeinitscommodity groups, andEKSIMAGRO does
notconduct anyinternational commercial activity atthistime.
60. Does Albania intend tonotify these enterprises under Article XVII?
Ifthere areanyremaining SFTEs atthetimeofaccession, theywillbenotified.
61. Please provide acomprehensive listofallproducts covered under "Agroeksport". How
areagricultural imports andexports controlled? Dotheymove freely oraretheysubject to
restrictions? Ifso,what kind ofrestrictions? What kind ofcommodities arecontrolled by
"Albcontrol" and"Albcop"?
AGROEKSPORT, ALBCONTROL andALBCOP havebeenprivatized andnolonger exercise
control overtheexport orimport ofanycommodities.
62. Please provide acomprehensive listofitems covered under "Eskimagro" and"Alimpeks".
Asnoted above, EKSIMAGRO isnotconducting anycommercial activity. ALIMPEKS is
engaged inexport oftobacco, tobacco products andmedicinal herbs.
C. Fiscal, Monetary andBudgetary Policy
63. Please provide more details onthetaxation system applied totheagricultural sector.
64. Please provide adescription ofthenewlawsregarding taxation oftheagricultural sector.WT/ACC/ALB/4
Page19
Agricultural landistaxed onthebasisofLawNr.7805, of16.03.1994 asamended byDecree
Nr.915 of5.9.1994. Taxation onagricultural landisapplied asafixed taxofUS$15 to60peryear
foreachhectare depending ontheland'sfertility. Noother taxexists intheagriculture sector.
D. Foreign Exchange System andRelations withtheIMF
65. What restrictions exist oncapital transfers inthecontext offoreign direct investment?
What arethecriteria forapproval bytheBank ofAlbania forcapital transfers other thanthose
operations granted automatic approval? Isthere anappeals process iftheBank doesnotapprove
thetransfer?
TheLawonForeign Investment provides thatthefollowing transfers aregranted automatic
approval: returns (including profits compensation; payments arising outofaninvestment dispute
payments made under thecontract, including accrued interest payments made pursuant toaloan
agreement; proceeds from thesaleorliquidation ofanyorallpartofaninvestment; andthereturn
ofshareholder 'sequity resulting from thediminution ofcapital when thecompany hasdecreased its
capital inaccordance withAlbanian legislation.
Transfers other thanthese arerestricted andrequire theapproval oftheBank ofAlbania. For
example, Bank approval would berequired toopen anoff-shore account inthecontext ofproject
financing. Inthiscase, orforother transfers requiring approval, theapplicant would needtoprovide
justifications explaining whysuchanaccount isnecessary. Approval foroff-shore accounts hasin
factbeengranted insome cases. IftheBank doesnotapprove ittypically provides explanations, but
there isnotaformal appeals process.
E. Banking System
66. TheMemorandum indicates thatforeign banks receive national treatment except intwo
respects. Please explain therationale behind thedifferent provisions forminimum capital
requirements forforeign banks. Also, please explain therationale behind theprohibition offoreign
banks from accepting deposits from natural orjuridical Albanian persons.
Therationale fordifferent minimum capital requirements isnottodiscourage theestablishment
offoreign banks -wethink thattheminimum capital requirement forforeign banks (US$2 million)
isnotinconsistent withinternational practice -butrather toencourage thecreation ofAlbanian banks.
Thenewregulations forlicensing ofbanks doesnotinclude aprohibition offoreign banks
from accepting deposits from natural orjuridical Albanian persons.
F. Industrial Policy
1. Light Industry
67. TheMemorandum states thattheMIT shall setpolicy toreactivate potentially viable
enterprises, toprivatize asmany enterprises aspossible, andtoencourage exporting enterprises.
How doestheMIT plantoachieve itsobjectives? Bywhat means willtheMinistry reactivate
potentially viable enterprises andencourage competitive production forexport markets?
Conditions intheStatebudget severely limitthepossibilities forreactivating Albania 'sindustrial
sector. Withtheassistance oftheinternational community, theGovernment ofAlbania ismaking effortsWT/ACC/ALB/4
Page20
toreconstruct 32large enterprises which arepotentially viable. TheAgency forReconstruction of
Enterprises (ERA) isleading thiseffort withfinancial support from theWorld Bank.
Development ofsmall andmedium sized enterprises (SMEs) isbeing pursued through the
activities ofanSME Foundation funded byECPHARE, theGerman Government andtheAlbanian
Government. Recently, theAlbanian-American Enterprise Fund, focusing onSMEdevelopment, began
itsactivities. These funds attempt toencourage SME development byidentifying promising business
activities, extending credit, andproviding business advice toAlbanian entrepreneurs.
Finally, oneofthemostimportant waysinwhich theGOA istrying toreactivate theindustrial
sector andencourage competitive production isthrough theprivatization ofindustrial State-owned
enterprises. Thisprocess hascontinued through 1995 and,significantly, hasbegun toinclude large
industries. (Seealsofollowing answer andsection IV.A. onprivatization.)
G. Foreign Investment Policy
68. Arethere anycriteria fororrestrictions onforeign investment?
There arenogeneral criteria orrestrictions onforeign investment. There are,however, certain
sector-specific criteria orrestrictions thatapply particularly toforeign investors:
Land ownership: Only Albanian nationals mayownland. Foreign nationals may, however,
lease Albanian landforaperiod ofupto99years. Inaddition, foreign nationals mayown
realestate, suchasbuildings andresidences.
Maritime Transport: Only Albanian nationals canacquire anAlbanian flagvessel.
Banking: Theminimum capitalization required fortheestablishment ofaforeign bank is
somewhat higher thanfortheestablishment ofanAlbanian bank. (About 2million US$for
aforeign bankcompared toabout 1million US$foranAlbanian bank.)
Inaddition totheabove, thereare,ofcourse, certain restrictions orcriteria thatapply equally
toAlbanian andforeign investors. Forexample, certain sectors arestillaState monopoly (e.g.,
insurance, radio andtelevision) andtherefore notopentoeither foreign ordomestic investment.
Investment incertain sectors, suchasbanking, issubject tonon-discriminatory prudential or
regulatory criteria. Investment inthetourism sector issubject toapproval bytheMinistry ofTourism
based oncriteria thatapply equally toforeign anddomestic investors. (Seesection IV.J.ontourism
foracomplete description ofthisprocess.)
H. Government Procurement
69. HastheAlbanian government considered theaccession ofAlbania totheGovernment
Procurement Agreement inthecontext oftheaccession ofAlbania totheWTO? When willa
possible harmonization ofthelegal framework andprocedures takeplace?
TheAlbanian Government doesnothaveaposition onthisquestion yet.Toebelieve thatthe
newProcurement lawisinharmony withtherequirements oftheGovernment Procurement Agreement,
andwewould appreciate theopportunity toexchange views about this.WT/ACC/ALB/4
Page21
70. Could theAlbanian government provide abreakdown ofthepublic sector procurement
market bothbycontracting entity andbyproduct type?
Atthistime, procurement dataisnotcompiled according tocontracting entity andproduct
type. Theexisting breakdown isaccording toprocurement bythecentral government andprocurement
bylocalgovernments.
71. Does theAlbanian procurement lawmake provisions foranyoffset requirements, such
astechnology transfer orbuy-back arrangements?
Albania 'sprocurement lawmakes noprovision foroffset requirements.
72. Could theAlbanian authorities provide further information onthecircumstances which
determine whether procurement isoperated onthebasis oftheauction method oronthebasis
ofthelocal procurement method asdescribed onpage 30oftheMemorandum ontheForeign
Trade Regime.
73. Histhelawonpublic procurement being prepared bytheProcurement UnitoftheMinistry
ofIndustry, Trade andTransport beencompleted? Ifso,please provide acopyandexplain the
requirements fortheGovernment andthebidders.
74. What percentage ofprocurement ismade withfunds entirely from foreign donors? Mixed?
75. Inagovernment procurement auction valued atlessthanlek20million, theMemorandum
mentions arestricted tendering. What isthecriteria forthebidders under restricted tendering?
Does Albania have amechanism bywhich theaward ofacontract canbechallenged?
Themethods described onpage30oftheMemorandum apply totheprevious procurement
system. Thenewprocurement lawprovides forprocurement through thefollowing methods: open
tendering; restricted tendering; direct procurement; andtwo-stage tendering. Thepreferred method
isopentendering. Restricted tendering maybeused(a)when thegoods, construction orservices are
available onlyfromalimited number ofsuppliers; or(b)when theestimated value ofthecontract does
notexceed athreshold setoutintheprocurement regulations. (Those regulations havenotbeenprepared
yet.)Forfurther information, seethenewProcurement Lawwhich hasbeenprovided totheSecretariat
inaWTO language.
1. Agriculture Policy
76. Albania mentions non-tariff measures (quotas, licensing) fortheimport ofliveanimals,
seeds andseedlings, butstates there arenoother suchmeasures foragricultural products. Please
confirm thatallnon-tariff measures willbeeliminated including those maintained through State
trading enterprises.
Theimport ofliveanimals, seeds andseedlings inAlbania isnotsubject toquotas orquantitative
licences. Toimport these commodities, based ontheLaw"OnVeterinary Service" andontheLaw
"OnSeeds andSeedlings," importers areobliged toprovide aveterinary licence (forliveanimals) or
phytosanitary licence (forseedandseedlings). Thismeans thattheimport ofthese products issubject
onlytotechnical control.WT/ACC/ALB/4
Page22
77. Please provide further information ontheprice control mechanisms forflour, bread, sugar
andrice,andanyother internal support measures including direct payments toproducers. Also
non-product specific support suchasforwater andirrigation, transport ofgoods, restructuring
andinput subsidies, which arementioned intheMemorandum.
78. Could Albania provide information onhowitexercises price control overfourbasic food
commodities, namely flour, bread, sugar andrice.When doesAlbania plantofreeprices onthese
commodities? (Australia)
Since thesubmission oftheMemorandum, price controls havebeeneliminated onsugar and
rice. Controls remain onflourandso-called "normal", (simple) bread which isstillabasic fooditem
forthemajority ofAlbanians. There arenoprice controls onother kinds ofbread.
Pricecontrols onthesecommodities areexercised through theimposition ofceiling prices which
aremonitoredbymunicipalauthorities.Inaddition,theStateprovidesseveralindirectsupportmeasures.
In1995, theStatepurchased asmall percentage (about 2.5percent)oftotaldomestic grain production
for15lek/kilo, andsolditfor13lek/kilo (Decision nr.333of26.06.1995.) Also, thepriceforelectric
energy andwater usedbybread andflour producers islower thanforother industries, specifically
210lek/hour forelectricity and15lek/cubic meter forwater (Decision nr.185of18.4.1995) .This
represents about a50percentreduction inthenormal price.
Finally, bread andflour areexempted from the15percentturnover tax.
79. Would Albania provide information onwhether theyintend maintaining thesubsidisation
ofgrain prices after accession totheWTO? Ifthegovernment ofAlbania intends, instead, to
phase outthesubsidisation ofgrain prices, wewould require further information onthataswell.
(Australia)
Atthistime, weareunable tostatedefinitively whether andforhowlonggrain prices will
besubsidized. Asnoted above, thesubsidization ofgrain prices isrelated tosupport forbread, which
isstillthemostbasicandimportant fooditemforthemajority ofAlbanians. Atthesametime, Albania
intends topursue itspolicy ofprice liberalization asquickly aspossible. Wewelcome adiscussion
ofthisissue, especially inthecontext ofAlbania 'sposition under theagriculture agreement.
80. Thelevelofimport dutyonabroad range ofagricultural commodities issetatarelatively
low5percent, andthere appears tobefewnon-tariff barriers. Many products however have
aminimum import price (page 68).Could Albania provide thereasons forestablishing suchprices
onagricultural products andtheir relationship todomestic prices? (Australia)
Themain reason formaintaining minimum import prices foragricultural andother products
istodealwiththeproblem ofimporters presenting falseinvoices. Itisnotintended tobeamechanism
forprotectingdomesticproduction.Minimumpricesarecalculatedtakingintoconsiderationinternational
market prices, withtheresult thattheminimum import price foracertain commodity maybelower
thanthedomestic salesprice oflikecommodities.
81. While theminimum import prices formany agricultural products arebelow world prices,
there aresome thataresetwellabove world prices. Forexample, while theaverage world price
forricewasUS$142/ton in1993/1994 (andisforecast toreach US$156/ton in1994/1995), the
minimum prices clearly have aprotective effect. Arethere anyplans toreview ortoeliminate
these minimum prices? (Australia)WT/ACC/ALB/4
Page23
Albania doesnotproduce rice,so,inourview, theminimum price ofricedoesnothavea
protective effect. Asforplans regarding minimum prices, theGOA isaware ofWTO requirements
inthisarea, andhasbegun toexamine prospects forreplacing thecurrent system withonebased on
transaction values. Inthisregard, alawontransaction value, based onWTO principles, hasbeen
drafted andisbeing reviewed bytherelevant ministries. Wearelooking carefully atsome important
questions about howsuchalawcould beimplemented, taking intoconsideration theongoing problem
offalseinvoicing, andtheneedtotrainCustoms agents intheapplication ofthenewlaw.
82. Hastheagricultural sector beencompletely privatized? Ifnot,howisitstillcontrolled?
IsitthegoalofAlbania tocompletely privatize theagricultural sector inthefuture? Please provide
further details onprivatization withparticular emphasis oncollective andState farms. Explain
further theplantoissue "securities".
Virtually allagricultural landhasbeenprivatized, which isthefirstandmostcritical stepin
theprivatization oftheagriculture sector. Allthecollective farms havebeenprivatized aspartofthe
privatization ofagricultural land.
Inaddition, great progress hasbeenmade intheprivatization ofagricultural enterprises. Of
the360State foodandagricultural enterprises, 300havebeenprivatized. Oftheremaining 60,30
enterprises areintheprocess ofprivatization (Decision ofCouncil ofMinisters No.203,of3May
1995) .They willbechanged intocommercial companies which havetheability toissue "securities"
(stock). Itisintended thatthese companies willhavebothprivate andState shareholders.
83. WillAlbania provide anagriculture schedule illustrating itsagriculture subsidies? How
doestheGovernment ofAlbania support theprice ofgrain? Viadirect purchase? How much
overthelastthree years?
84. Please provide more details ongovernment subsidization ofagricultural prices. Howdoes
Albaniadeterminewhichfarmersare"poor"?Arepaymentstopoorfarmerslinkedtoproduction?
TheStatesupports theprice ofdomestic grain bypurchasing asmall percentage ofdomestic
production (about 2.5percent)at15lek/kilo andflour/bread producers apurchase priceof13lek/kilo.
Inaddition, farmers benefit from reduced prices forwater usedforirrigation.
Theamount ofgrain purchased bythegovernment during thelastthreerearsisapproximately
10thousand tons.
Itisnotdifficult forthegovernment todetermine which farmers arepoor. Itisnotan
exaggeration tosaythatvirtually every Albanian farmer ispoor. Payments tofarmers arenotlinked
toproduction.
TheGOAintendstosubmitanagricultureschedulewhichwillincludeinformationonagriculture
subsidies.
85. What typeofimport licences arerequired forpesticides, liveanimals, seeds andseedlings?
Arethese restrictive oradministrative? Arethese import licences somehow related totheSPS
restrictions mentioned previously? Doanyother agriculture commodities require import licences?
Fortheimport ofpesticides, apesticide import licence, issued bytheMinistry ofAgriculture
andFood, isrequired.WT/ACC/ALB/4
Page24
Fortheimport ofpure-bred animals, aveterinary licence approved bytheAlbanian Central
Commission forBreeding Improvement isrequired. Fortheimport ofnon-pure-bred liveanimals,
onlyveterinary permission isrequired.
Fortheimport ofseeds andseedlings, thecertificate ofverification fromtheAlbanian Seeds
andSeedlings Commission isrequired.
J. Tourism
86. What arethecriteria foranalysing proposed activities inpriority tourism zones for
authorizing theissuance oflicences?
Thecriteria aresetoutintheapplication formthataprospective tourism service provider must
filloutinorder toobtain alicence. Those criteria include: theproposed investment amount, expected
timeofperformance,theapplicant'sabilitytoimplementtheproposal,theapplicant'spreviousexperience
intourism development, thefinancial health oftheapplicant, theneedfortheactivity, andtheexpected
impact ontheenvironment.
These criteria apply equally toforeign andAlbanian applicants onanon-discriminatory basis.
K. Subsidy Policy
87. TheGovernment ofAlbania states herethatthere arenoagricultural subsidies. However,
onpage31,theGovernment ofAlbania notes thatthere aresubsidies forgrain. Please explain.
Does theGovernment ofAlbania plantoimpose anyother subsidies?
Incertain years, theGovernment hasprovided some subsidization forgrain prices butinother
years ithasnot. Thisdecision hasbeentaken onayear-to-year basis. (Seesection IV.Iabove for
adescription ofhowgrain prices havebeensupported.) Atthistimetherearenotplans toexpand such
subsidization.
L. FreeTrade andFreeEconomic Zones
88. Does theGovernment ofAlbania have anyplans forentering intoafreetrade areaor
aCustoms Union?
Notfortheforeseeable future.
V. TRADE AND ECONOMIC RELATIONS WITH THIRD PARTIES
C. Preferential/Special Trade Agreements
89. CanAlbania provide more information onthespecific instances where trade agreements
provide fornational treatment rather thanMFN treatment? Arethere anycases where Albania 's
trade agreement partners receive preferential treatment compared toother countries? (Australia)
There arenoinstances inwhich trade agreements provide fornational treatment rather than
MFN treatment. Asstated intheMemorandum, trade agreements accord national treatment, MFN
andinsome instances thebetter ofnational treatment orMFN.WT/ACC/ALB/4
Page25
There arenocases where Albania 'strade agreement partners receive preferential treatment
compared toother countries.
VI. LAWS AND LEGAL ACTS
B. Listing ofKeyLaws andOther Legal Acts
90. TheUSisespecially interested inobtaining copies ofthelaw"OnCustoms Code ofthe
Republic ofAlbania" andthelaw"OnCustoms Tariffs". Arethese available?
AcopyoftheCustoms Code hasbeenprovided totheSecretariat inanofficial WTO language.
Wewillprovide acopyofthelaw"OnCustoms Tariffs".
Questions Related toServices
Financial Services
91. Does theGovernment ofAlbania currently impose orplantoimpose anylimitations on
market access ornational treatment inthefinancial services sector? Thisshould include any
discretionary investment authorizations, reciprocity measures, ordiscriminatory practices involved
inprivatization, inaddition toother measures inconsistent withtheprovisions onmarket access,
national treatment, andMFN oftheGeneral Agreement onTrade inServices (GATS). Ifso,
please describe anyrestrictions. DoestheGovernment ofAlbania haveatimetable foreliminating
these restrictions?
Asnoted above, insurance services arestillaState monopoly.
Regardingbankingandotherfinancialservices(excludinginsurance),theGovernmentofAlbania
doesnotimpose anyrestriction onmarket access ornational treatment except forthegeneral prohibition
onforeign ownership ofland(which applies toallsectors) andtheminimum capital requirement for
banks which isUS$1million forAlbanians andUS$2 million forforeigners. There arenoplans to
impose additional restrictions.
92. Please describe anylaws, regulations, orpractices which address thefollowing:
(a) Theability ofanon-resident financial service provider toprovide cross-border intothe
territory ofyourcountry advisory andother auxiliary financial services, theprovision andtransfer
offinancial information, andfinancial dataprocessing (asdefined inpara. 5oftheAnnex on
Financial Services);
There arenorestrictions inlaw,regulation orpractice onsuchcross-border operations.
(b) Whetherresidentsofyourcountrymaypurchasefinancialservicesintheterritoryofanother
party;
There arenorestrictions onsuchcross-border purchases.WT/ACC/ALB/4
Page26
(c) Theabilityofanon-residentfinancialserviceprovidertoestablishandexpandacommercial
presence inyourcountry asabranch, anagency, 'arepresentative office, andasawholly-owned
subsidiary, either through denovoinvestment orthrough acquisition ofexisting enterprises, under
terms andconditions ofauthorization thataccord national treatment;
Asnoted above, national treatment isaccorded except forforeign ownership ofland, which
isprohibited, andminimum capital requirements fortheestablishment ofbanks (US$1million for
Albanians, US$2million forforeigners).
(d) Theability ofaforeign-owned financial service provider established inyour country to
compete tosupply financial services onterms andconditions thatarenolessfavourable thanthose
applied tofinancial service providers ofyour country inlikecircumstances (including the
opportunity toparticipate inanyself-regulatory body, securities orfutures exchange ormarket,
clearing agency orother organization orassociation).
Therearenorestrictionsorlimitationsontheabilityofaforeignownedfinancialserviceprovider
established inAlbania tocompete tosupply financial services onterms ofnational treatment.
93. Arethere anyrestrictions onthetemporary entry ofthepersonnel ofafinancial services
provider thatisestablishing orhasestablished acommercial presence inyour country?
Norestrictions.
Telecommunications
94. Which services areconsidered value-added andbasic telecommunication services according
toAlbania 'sregulatory regime? How aretheydefined? What istheir regime?
95. Areallofthese services liberalized? Ifyes,what arethemarket access conditions for
foreign investors?
96. Ifallarenotliberalized, which services havebeenliberalized? Does Albania foresee any
short-term liberalization?
97. Could Albania listtheservices which arereserved toamonopoly orexclusive provider?
Isforeign participation inthecapital ofthese enterprises limited?
OnNovember 23,1995, Albania passed newlegislation fortelecommunication services and
networks. Basic telecommunication services aredefined astelephone, telexandtelegraph services.
Thenewlawalsoprovides aregime forvalue-added services, suchaselectronic mail, information
services, on-line databaseservices, mailbox, videotext, remote access dataprocessing, etc.
Itisforeseen under thenewlawthatforeight years amonopoly willcontinue toexistonthe
provision ofbasic telecom services. During thattime, theState monopoly provider ofbasic
services -Albanian Telecom -willbetransformed intoajoint-stock company withastrategic partner.
Thepartner willholdanimportant package ofshares, buttheprecise percentage isstilltobedefined.
Regardingvalue-addedservices,itisforeseenthattheGovernmentwillgrantfixed-termlicences
tothebusiness entities thatwillprovide suchservices. TheGovernment ofAlbania isworking toset
uparegulatory body, under theresponsibility oftheCouncil ofMinisters, which willdefine thecriteriaWT/ACC/ALB/4
Page27
forissuing licences forvalue-added services. Itisforeseen thatthere willbelimited competition in
mobile communications, paging anddatatransmission, andafully liberalized market forterminal
equipment.
Maritime Transport
98. Please describe Albania 'sgeneral regulatory environment concerning liner andbulk
transport. What isthesituation regarding multimodal transport? Arethere anymeasures
regarding cargo sharing withpartner countries? Arethere anycargo reservations forAlbanian
companies?
Thelegalframework formaritime transport services isincomplete, andcertain existing laws
areunder review. Generally, maritime transport isnotregulated asfarasinternational trade flow
isconcerned, beitlinerorbulktransport. There isnoregulation concerning multimodal transport,
although itmustbesaidthatmultimodal transport intherealsense ofthetermdoesnotexistinAlbania
yet.There arenocargo sharing orreservation arrangements ofanykind. Albania isnotaparty to
theUNLiner Code ofConduct anddoesnothaveaccess toanylinerconference orsimilar cooperation
arrangements.
99. Domeasuresexistlimitingtheabilityofaforeigninvestortoestablishacommercialpresence
inAlbania withaviewtoproviding international maritime services?
There arenodiscriminatory measures limiting theability ofaforeign, investor toestablish
acommercial presence inAlbania withaview toproviding international maritime services, except
therighttoownAlbanian flagvessels (seenextquestion). Thelicence toprovide maritime services,
obtainable fromtheMinistry ofIndustry, Transportation andTrade, isissued onthesame terms and
conditions forAlbanian andforeign applicants.
100. What aretheconditions forobtaining theright toflytheAlbanian flag?
Forthattimebeing, therighttoflytheAlbanian flagorownAlbanian flagvessels isgranted
onlytoAlbanian nationals. Legislation allowing foreign ownership ofAlbanian flagvessels isunder
consideration.
101. Isitpossible foraprivate investor toundertake auxiliary service activities inportareas?
Aforeign investor cannot carry outauxiliary services inportareas forthemoment, although
some stepbysteprelaxation ofthissystem isunder consideration.
102. Domeasures existwhich restrict theaccess offoreign boats toportfacilities?
There arenorestrictions ontheaccess offoreign vessels tocommercial portfacilities except
fornormal requirements, suchasadvance notice ofarrival, which apply equally toAlbanian andforeign
vessels.
Other Means ofTransport
103. Please describe Albania 'sregulatory environment for(1)roadtransport and(2)auxiliary
services forairtransport aslisted intheAnnex onAirTransport oftheGATS. What arethe
conditions foraforeign operator togainaccess totheAlbanian market?WT/ACC/ALB/4
Page28
Thegeneral regulatory environment forroadtransport services issetoutintheorder ofCouncil
ofMinisters no.7of17August 1993, Regulation ofministry ofIndustry, Transport andTrade no.
2324/1 of28October 1993(passengers) andDecision ofCouncil ofMinisters no.621of20December
1993, Regulation ofMinistry ofIndustry, Transport andTrade no.72(commodities).
Theseinstrumentsprovideregulationsforroadtransportservice,includingrelationshipsbetween
transportation service providers andmunicipal authorities, licensing ofproviders (such astaxidrivers,
etc.), andticketing systems forbothpassengers andcommodities. There arenorestrictions onthe
provision ofroadtransport services byaforeign provider.
RegardingauxiliaryairtransportservicescoveredbytheGATS-aircraftrepairandmaintenance;
selling andmarketing ofairtransport services; andcomputer reservation system (CRS) services -the
situation isasfollows.
Concerning aircraft repair andmaintenance, there arenolawsorregulations specifically
addressing thiskindofservice. Asapractical matter, commercial aircraft repair andmaintenance
takes place outside ofAlbania, butthere arenorestrictions ontheability ofaforeign operator togain
access totheAlbanian market andprovide suchservices.
Selling andmarketing ofairtransport services andcomputer reservation services (CRS) are
ensured forairlines withwhich Albania hasconcluded abilateral agreement. Each party tosuchan
agreement undertakes toensure fairandequal opportunity forthedesignated airlines ofbothparties
toparticipate ininternational airtransportation, andtotakeallappropriate action within itsjurisdiction
toeliminateallformsofdiscriminationorunfaircompetitivepracticesadverselyaffectingthecompetitive
position oftheairlines oftheother party.
Regarding theselling andmarketing ofairtransportation services, thedesignated airlines of
bothparties totheagreement areensured theability to:
(a) establish intheterritory oftheother party offices forthepromotion ofairtransportation and
saleofairtickets aswellasother facilities required fortheprovision oftheairtransportation;
(b) allow intheterritory oftheotherpartytoengage directly and,atthatairline 'sdiscretion, through
itsagent inthesaleofairtransportation;
(c) bring inandmaintain intheterritory oftheother party itsmanagerial, commercial, operational
andtechnical staffasitmayrequire inconnection withtheprovision ofairtransportation.
Regarding computer reservation systems thedesignated airline ofacontracting party andthe
airline 'sagents willhaveunrestricted andnon-discriminatory access toanduseoftheCRS'sinterritory
oftheother party. Each contracting party guarantees totheCRS'schosen asitsprimary system by
thedesignated carrier oftheother party freeandunimpaired access initsterritory. Neither contracting
party will,initsterritory, impose orpermit tobeimposed ontheCRSofthedesignated carrier of
thecontracting party more stringent requirements thanthose imposed ontheCRSofitsowndesignated
carrier, suchaswithrespect to:
(a) theoperation andsaleoftheCRSservices including CRSdisplay andediting rules, and
(b) theaccess toanduseofcommunication facilities, selection anduseoftechnical hardware and
software ortheinstallation ofhardware.WT/ACC/ALB/4
Page29
Questions Related to
Trade Related Intellectual Property Rights
104. HasAlbania reviewed itsexisting legalframework dealing withpatents, trademarks, and
copyrights todetermine whether itiscompatible with obligations contained intheTRIPS
agreement? (sections IV.1.a andb)
Yes.
105. Ifso,what changes hastheGovernment ofAlbania determined arenecessary inorder
tocomply withTRIPS obligations? When doesitplantomake these changes?
Twoyears ago,Albania 'slegalframework inthisareaconsisted onlyofadecree bytheCouncil
ofMinisters regarding trademarks. Since thattime, theGOA hasworked hardtodevelop thelegal
regime forintellectual property rights consistent withinternational standards. Specifically, theGOA
haspassed lawsonindustrial property (Law number 7819 of27April 1994) ,oncopyrights (Law
no.7923of19April 1995). Provisions ontrademarks areincluded inthelawonindustrial property.
InOctober 1994, Albania became amember oftheParis Convention.
Based onourreading oftheTRIPS Agreement, webelieve thatexisting Albanian lawis
compatible withtheAgreement. Wewould note,however, thatinsome respects theTRIPS Agreement
covers certain intellectual property rights, suchasregarding layout designs forintegrated circuits, which
areeither notincluded ornotspecifically noted inAlbanian law.
Patents
106. What inventions, ifany,areexcluded from patentability?
Nopatents shallbegranted for:
- inventions, thepublication orexploitation ofwhich, would becontrary topublic order
ormorality;
- inventions ofsurgical, diagnostic ortherapeutical methods practised onthehuman or
animal body. Thisprovision shallnotapply toinventions relating tosubstances and
devices foruseinanyofthese methods;
- substances obtained through internal nuclear transformations formilitary purposes;
- plantoranimal varieties oressentially biological processes fortheproduction ofplants
oranimals. Thisprovision doesnotapply tomicrobiological processes ortheproducts
thereof;
- discoveries, scientific theories, mathematical methods, aesthetic creations, schemes,
rules andmethods forperforming mental acts, playing games ordoing business,
programs forcomputers andpresentations ofinformation. Thisprovision shallexclude
patentability ofthesubject-matter oractivities referred tointhatprovision onlytothe
extent towhich apatent application orpatent relates tosuchsubject-matter oractivities
assuch.WT/ACC/ALB/4
Page30
107. Does Albanian lawprovide patent-holders thefullrange ofrights outlined inTRIPS
Article 28?Ifnot,what rights arenotcurrently provided?
Article 27ofthelaw"OnIndustrial Property" provides patent-holders thefullrange ofrights
outlined inTRIPs Article 28.
108. What exceptions totheexclusive rights conferred byapatent areprovided forunder
Albanian law?
Where thenational security orpublic safety sorequires, theGovernment mayauthorize, even
without theagreement oftheowner ofthepatent oroftheapplicant, bynotice published intheOfficial
Journal, agovernment agency oraperson designated inthesaidnotice tomake, useorsellaninvention
towhich apatent orapatent application forapatent relates, subject topayment ofequitable remuneration
totheowner ofthepatent ortheapplicant. TheGovernment 'sdecision maybethesubject ofanappeal
intheCourt.
109. Under what conditions doesAlbanian lawprovide fortheissuance ofcompulsory licences?
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 anonexclusive, non-voluntary licence ifthepatented invention isnotworked oris
insufficiently worked intheRepublic ofAlbania. Thegrantofthenon-voluntary licence shallbesubject
tothepayment ofequitable remuneration totheowner ofthepatent.
Anon-voluntary licence shallnotbegranted ifthePatent Office isconvinced thatcircumstances
existwhich justify thenon-working orinsufficient working ofthepatented invention intheRepublic
ofAlbania.
Indeciding whether togrant anon-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.
110. Arethere anyrestrictions onapatent owner 'srights toassign transfer, licence rights under
apatent?
No.
111. What isthesizeoftheexamining corps inAlbania 'spatent office? Howmany applications
aresubmitted/processed eachyear? Inwhat technological categories?
Albania 'sPatent Office, under theresponsibility oftheCommittee ofScience andTechnology,
employs 7persons dealing withpatents, trademarks, industrial designs andgeographical indications.
During thepastyear,thefirstyearofthePatent office 'sexistence, thetotalnumber ofpatent applications
was50,andtrademark applications 1200. Applications weremainly inthefields ofconstruction and
mechanical technology.WT/ACC/ALB/4
Page31
112. What istheaverage pendency period?
Theaverage pendency period ofpatent applications inAlbania 'sPatent Office isfrom 10to
20months.
Semi-conductors
113. What plans doesAlbania havetoprovide protection tolayout designs ofintegrated circuits?
(IV.1.a. para. 8)
TheAlbanian Government intends toprepare anactontheprotection oflayout designs of
integrated circuits, butwork hasnotyetbegun.
114. Please describe Albania 'ssystem ofcivilandcriminal penalties applicable toinfringers
oftherights covered intheTRIPS Agreement.
Trademarks
115. Does theAlbanian lawprotect service marks, asrequired byTRIPS?
Yes.
116. Towhat extent dowell-known marks receive protection under theexisting law,andfuture
amendments, ifany? What isthedefinition andscope ofprotection ofawell-known mark?
Asignshallnotbeprotected asamark ifitsuseasamark would beinconflict withearlier
rights.Awell-knownmarkwithinthemeaningofArticle6-bisoftheParisConventionfortheProtection
ofIndustrial Property ofathirdparty shallbe,inparticular, considered asanearlier right.
117. What istheroleoftheTrademark Registrar ininfringement actions?
Ininfringement actions thedeterminant roleisthatoftheCourt.
118. What arethegrounds onwhich theregistrar mayrefuse toregister amark?
Theregistrar mayrefuse toregister amark oranelement ofamark ifitconsists of:Statenames
(complete orabbreviated), State emblems, official hallmarks adopted byStates, abbreviations and
emblems ofintergovernmental organizations, religious symbols, surnames, portraits, pseudonyms of
persons well-known bythegeneral public ifnotauthorized bytheowner thereof ortheirsuccessors
intitle,except incases when above-mentioned persons havediedmore than50years ago,andsigns
thatviolate public order ormorality.
119. Does theregistration ofamark satisfy notice oftheexclusive right oftheright holder
topotential infringers? Does aright holder have togiveactual notice toaninfringer before the
infringer isliable? Oristheregistration ofamark sufficient?
Theregistration ofthemark satisfies notice oftheexclusive rightoftherightholder topotential
infringers. Such aregistration issufficient.WT/ACC/ALB/4
Page32
120. Istherecordation ofanassignment mandatory? Ifso,what aretheconsequences ofnot
recording anassignment?
Yes. Otherwise itshallnotbelegally valid.
121. Towhat extent arethedecisions ofthetrademark registrar appealable toacourt oflaw?
Within aperiod oftwomonths afterthedateofreceipt oftheregistration rejection, theapplicant
shallhavetherighttofileasubstantiated appeal withtheBoard ofAppeal ofthePatent Office. The
decision oftheBoard ofAppeal maybeappealed intheRegional Court ofTirana within 6months.
122. Under what conditions mayamark becancelled fornon-use?
Theregistration ofamark mayberevoked iftheowner oftheregistered mark hasnotused
itinconnection withthegoods orservices referred tointheregistration during aperiod offiveyears,
without good reason.
Arequest torevoke theregistration ofamark ontheground oftheabove-mentioned paragraph
maybesubmitted intheCourt byanyinterested party. TheCourt shallinform thePatent Office of
itsdecision within 1month from thedatethedecision isadopted.
Aregistration maynotberevoked ontheabove-mentioned ground inthecaseofanyofthe
following usesoftheregistered mark inconnection withthegoods orservices referred tointhe
registration:
(a) usemade under alicence contract recorded intheregister ofmarks;
(b) useofthemark inamodified form which doesnotalteritsdistinctive character;
(c) useofthemarks inpublicity andbusiness correspondence.
Anyrevoked registration shallcease tohaveeffect onthedatewhich therevocation becomes
effective.
ThePatent Office shallrecord therevocation intheregister ofmarks andpublish therevocation
ofthemark andanyother alteration made ontheground ofthisArticle.
Industrial Designs
123. What form ofprotection doesAlbania nowprovide forindustrial designs?
Industrial designs shallbeprotected bytheirregistration inthePatent Office. Thisprotection
shallnotexclude anyother rights provided forinthelaw,inparticular rights based ontheLawof
Copyright.
124. Does Albania expect tomake anymodifications toitslawstoimplement theindustrial
design provisions ofTRIPS?
TheAlbanian law"Onindustrial property" complies withtheindustrial provisions ofTRIPS.WT/ACC/ALB/4
Page33
Trade Secrets
125. Does Albania nowprotect trade secrets? Ifso,inwhat form? Arechanges necessary
toimplement theTRIPS obligations?
Albania doesnotprotect trade secrets.
Competition andAnti-Trust
126. Does Albania haveanylawthatwould fallintotheanti-competitive practices provisions
ofArticle 40ofTRIPS? Ifso,please specify?
Wedonotthink thatanyofAlbania 'slawsfallintotheanti-competitive practices ofArticle
40ofTRIPS.
127. Arethere anyrestrictions onthelicensing ofintellectual property, oneither domestic or
foreign nationals?
There arenorestrictions onthelicensing ofintellectual property, either fordomestic orforeign
nationals.
Enforcement
128. What isthejudicial system inplace nowfortheenforcement ofintellectual property rights,
bothcivilandcriminal?
Theowner ofanindustrial property rightshallhavetherighttoinstitute proceedings inthe
Court against anyperson whohasinfringed orisinfringing theprotection conferred tohimonapatent
orregistration inthePatent office. Theproceedings maynotbeinstituted afterfiveyears from the
actofinfringement. Iftheowner ofanindustrial property rightproves thataninfringement hasbeen
committed orisbeing committed, theCourt shallaward damages andshallgrantaninjunction toprevent
further infringement andanyotherremedy provided inthegeneral law.Iftheowner ofthepatent proves
imminent infringement, thecourtshallgrantaninjunction toprevent infringement andanyotherremedy
provided inthegeneral law.
129. What istheaverage timeoflitigation ofcopyright infringement suits?
There havenotbeenenough cases ofcopyright infringement suitstobeabletospeak ofan
average timeoflitigation. Untilnow,onlyfourcaseshavebeenbrought tothecourts, andoneresolved.
Thelitigation timefortheoneresolved wassixmonths.WT/ACC/ALB/4
Page34
ATTACHMENT 1
ORGANIZATION AND STRUCTURE OFTHE ALBANIAN GOVERNMENT
1. THE STATE
1.1 Nature oftheState
Albania isaparliamentary republic andademocratic Statebased ontheruleoflawandpolitical
pluralism. Thepeople exercise their power through representative bodies andbythemeans of
referendum.
1.2 Constitutional Base
TheLawonMajor Constitutional Provisions, which wasenacted on29April 1991andamended
several times in1992and1993, isthepresent constitutional base. Theprovisions ofthislawwilloperate
untiltheadoption oftheConstitution oftheRepublic ofAlbania. TheParliament (People 'sAssembly)
ispreparing adraftConstitution.
TheLawonMajor Constitutional Provisions established theseparation ofthelegislative,
executive andjudicial powers. Thelegislative power belongs totheParliament. Thejudicial power
isexercised bythecourts which areindependent andguided solely bylaw.
1.3 Head ofState
ThePresident oftheRepublic ofAlbania (hereafter referred toas"thePresident") isthehead
ofState. Herepresents allthepeople.
ThePresident iselected bytheParliament, byatwo-thirds majority voteofalldeputies, for
afiveyearterm. Ifthisrequired majority isnotachieved inthefirstballot, asecond ballot isheld
whereby thePresident iselected byanabsolute majority ofvotes, Intheevent there aremore than
twocandidates onthefirstballot, onlythetwocandidates whoreceived thegreatest number ofvotes
canparticipate inthesecond ballot. Thesame person cannot beelected President more thantwice
successively. Every Albanian national whoisatleast40years oldandmeets theRequirements to
beelected adeputy (seesection 3.3)iseligible tobeapresidential candidate.
ThePresident guarantees thedueobservance oftheLawonMajor Constitutional Provisions,
other laws, andtherespect ofthecitizens 'rights andfreedoms. Heproclaims thelawsandreferendums
decided bytheParliament, andhecanpropose areferendum totheParliament within 15daysafter
theParliament adopts alaw,thePresident canreturn thelawbacktotheParliament withamessage
explaining hisreasons. Thismessage isreadinplenary session.
ThePresident nominates acandidate fortheposition oftheChairman oftheCouncil ofMinisters
(i.e.Prime Minister) andaccepts hisresignation. Upon theproposal ofthePrime Minister, heappoints,
discharges ordismisses, bydecree, ministers andothers members ofthegovernment. Within 10days,
hepresents thisdecree totheParliament forapproval. Upon theproposal ofthePrime Minister, he
appoints anddischarges directors ofother central institutions (e.g.Governor oftheBank ofAlbania),
andthedirectors andthevice-directors oftheNational Intelligence Service.WT/ACC/ALB/4
Page35
Inspecific cases, hehastherighttoparticipate inthemeeting oftheCouncil ofMinisters and
topropose topics forinclusion intheagenda. When thePresident takes partinthemeeting, hechairs
themeeting andsigns thedecisions taken.
ThePresident issues decrees ofindividual character anddecisions. Inurgent cases, healso
issues decrees ofnon-native character, which aresubmitted forapproval totheParliament attheearliest
possible session. These decrees anddecisions arecountersigned bythePrime Minister and,depending
onthecase, bytherelevant minister oraperson ofequivalent rank.
After obtaining theopinion ofthePrime Minister andoftheSpeaker oftheParliament, the
President maydissolve theParliament before itscurrent termexpires when theAssembly isunable
toperform itsfunctions. Inthiscase, newparliamentary elections arefieldnolaterthan45daysafter
theAssembly 'sdissolution.
Onacasebycasebasis, andfollowing thesignature ofthePrime Minister, therelevant minister
oraperson ofequal rank, thePresident concludes international treaties andagreements, andratifies
anddenounces those notexamined bytheParliament itself. Heappoints anddischarges diplomatic
representatives upon theproposal ofthePrime Minister.
ThePresident isthegeneral commander ofthearmed forces andchairman oftheCouncil for
Defence, which wasestablished todirect, organise andmobilise allthecountry 'sforces andresources
fordefence. When itisimpossible fortheParliament toconvene, thePresident candeclare astate
ofwarintheevent ofanarmed aggression against theRepublic ofAlbania. Hecanalsodeclare partial
andgeneral mobilisation aswellasastateofemergency. Inthese cases, thePresident must submit
thedeclaration fortheParliament approval within fivedaysofitsannouncement.
ThePresident isnotresponsible fortheactsundertaken during histermofoffice, withthe
exception ofactsofhightreason orviolation ofthelawortheLawonMajor Constitutional Provisions.
Insuchcases, upon therequest ofnolessthanone-fourth ofthedeputies, theParliament decides by
secret ballot ifthePresident isresponsible fortheact.Thisdecision isadopted byatwo-thirds majority
voteofalldeputies.
2. JUDICIAL AUTHORITY
2.1 Legal System
TheAlbanian legalsystem isacontinental oneandispresently undergoing reform. Anew
CivilCode, effective sinceNovember 1994, hasbeenadopted aswellasthefirstpartoftheCommercial
Code andtheLawonCommercial Companies. Drafts oftheCriminal Code andoftheCriminal
Procedure Code arebeing considered bytheParliament. ThedraftCivilProcedure Code andtheothers
parts oftheCommercial Code alsoarebeing prepared.
Thehierarchy oflegislative andadministrative actsisasfollows:
*constitutional law;
*laws adopted bytheParliament;
*decrees ofthePresident ofanormative character which havebeenapproved bytheParliament;WT/ACC/ALB/4
Page36
*decisions, orders andinstructions oftheCouncil ofMinisters;
*orders, regulations aninstructions oftheministers;
*decisions andorders ofprefects;
*decisions andorders ofthecouncils ofdistrict, municipalities andcommunities, and
*decisions andorders ofthechairmen ofmunicipalities andcommunities.
3. LEGISLATIVE AUTHORITY
3.1 Main Bodies
TheParliament (People 'sAssembly) isthehighest bodyofStatepower andtheonlylegislative
body inAlbania. Thecurrent Parliament consists of140deputies elected forafour-year term. The
Parliament holds itssessions nolessthantwice ayear.
TheParliament hastheauthority to:
- define themaindirections oftheState'sdomestic andforeign policy; adopt andamend
theConstitution andlaws;
- adopt theeconomic andsocial programmes forthe-country 'sdevelopment, andthe
State budget, proposed bytheCouncil ofMinisters;
- declare partial orgeneral mobilisation, astateofemergency orastateofwarincase
ofanarmed aggression against theRepublic ofAlbania orwhen suchaction isnecessary
tofulfil obligations deriving from international treaties;
- ratify ordenounce main treaties;
- grant amnesty;
- decide toholdapeople 'sreferendum;
- select andremove thePresident oftheRepublic ofAlbania;
- control theactivity oftheCouncil ofMinisters andtheGeneral Prosecutor 'soffice;
- oversee theactivity oftheAlbanian Radio andTelevision, theAlbanian News Agency
andother official media orpublic information sources which areunder itsauthority
(Thestatus ofthese institutions isdefined bylaw.);
- determine theadministrative-territorial structure ofthecountry, and
- decide onthecreation ordissolution ofministries orother bodies equal tothem.WT/ACC/ALB/4
Page37
ThelegislativeprocesscanbeinitiatedbythePresidentoftheRepublic,theCouncilofMinisters,
aparliamentary deputy, oragroup ofatleast20000citizens having therighttovote.
ThelawsandotheractsoftheParliament, except forconstitutional acts,areconsidered adopted
when theyareapproved bythemajority ofthedeputies present, butbynofewer thanone-third of
thedeputies. Thelawsareproclaimed bythePresident nolaterthan15daysfollowing Parliament 's
approval.
They enter intoforce 15daysafterbeing published intheOfficial Gazette, unless otherwise
stated inthelaworinthecaseoforganic laws.
TheParliament approves thecomposition ofthegovernment anditsprogramme bymajority
votewithin fivedaysaftertheirsubmission. Thedeputies havetherighttoforward atanytimealack-of-
confidence motion totheCouncil ofMinisters oranyoftheCouncil 'smembers. Thelack-of-confidence
motion must besigned byatleastone-tenth ofthedeputies andcannot beacted upon inParliament
untilthreedaysafteritspresentation. Intheevent thePrime Minister doesnotreceive theParliament 's
voteofconfidence, heimmediately submits hisresignation tothePresident oftheRepublic. The
President thennominates anewPrime Minister fortheParliament toconsider.
TheParliament 'sdisapproval ofaproposal forwarded bythegovernment doesnotbring about
thecompulsory resignation ofthegovernment.
TheParliament elects itspresidency, which consists oftheChairman andtwovice-chairmen.
Allsessions oftheParliament areconvened uponthedecision ofitspresidency andwhen thePresident,
theCouncil ofMinisters orone-quarter ofthedeputies asksthepresidency toconvene asession.
3.2 Associated Structures
TheParliamentformspermanentandtemporarycommissions.Therearecurrently10permanent
commissions:
- Constitutional andLegal Matters, andLocal Government Bodies, Foreign Policy and
International Relations;
- Economic, Budget, Finance andTrade; Agriculture andFood;
- Industry, Energy, Construction, Transport andPostal Telecommunication;
- Education, Science, Social Matters andPublic Services;
- Culture andPublic Information;
- Defence, Public Order andNational Intelligence Service;
- Mandates, Immunity andRegulation, and
- Human Rights.
Thepermanent commissions examine draftlawsandthenormative decrees ofthePresident;
monitor andcontrol theactivity oftheministries andother State bodies inaccordance withtheirWT/ACC/ALB/4
Page38
respective areas, andsubmit issues totheParliament ortheCouncil ofMinisters. Thetemporary
commissions aresetuptoexamine specific issues.
3.3 Electoral System
Thedeputies oftheParliament areelected forafour-year term. Thenumber ofdeputies and
theelectoral system aredefined bylaw.Inthe1992parliamentary elections, 140deputies wereelected.
Albania usesadualelectoral system. Deputies areelected directly intheelection zones as
independent candidates byatwo-round, majority votesystem. Theother 40deputies areelected from
listsnominated bytheirparty orbyacoalition ofparties. They areelected according toaproportional
system based ontheproportion ofvotes theparty received inthemajority votesystem.
AnyAlbanian national over21years oldiseligible fortheParliament.
4. EXECUTIVE AUTHORITY
4.1 Central Government
4.1.1 Head oftheGovernment
Theheadofthegovernment isthePrime Minister. InhisroleasChairman oftheCouncil
ofMinisters, herepresents theCouncil ofMinisters, presides overitsmeetings anddirects itsgeneral
activity. Heestablishes theagenda formeetings oftheCouncil ofMinisters andensures thatthe
meeting 'sdocumentation isprepared. Healsochairs preliminary meetings organised withrelevant
ministers andmediates among them toobtain consensus.
4.1.2 Office oftheHead ofGovernment/Office oftheGovernment
ThePrime Minister isassisted byateamofadvisors (approximately 10)whoarechosen on
anon-political basis togivehimtechnical advice onmatters within thecompetence oftheCouncil of
Ministers.
TheSecretary General oftheCouncil ofMinisters, whoisalsoamember oftheCouncil of
Ministers, dealswiththeadministrative issues related totheCouncil 'sfunctioning andorganises inter-
ministerial meetings.
4.1.3 Central Policy-making/Co-ordinating Bodies
Thesupreme body oftheexecutive power istheCouncil ofMinisters. Itsrights andduties
aredefined bytheLawonMajor Constitutional Provisions. TheCouncil ofMinisters ensures the
unified political andadministrative management ofthegovernment andco-ordinates thetasks and
functions oftheministers andcentral institutions.
TheCouncil ofMinisters has16members: thePrime Minister whoserves asChairman; two
Vice-Chairmen, whoarealsotheministers ofFinance andofConstruction andTourism; thesecretary-
general oftheCouncil ofMinisters; theother ministers incharge ofaministry; andtheChairman
oftheCommittee ofScience andTechnology.WT/ACC/ALB/4
Page39
TheCouncil ofMinisters isacollective body. Itsdecisions areadopted when approved by
theabsolute majority ofitsmembers. Thecouncil meets, inprinciple, every week tomake decisions
andtodiscuss newlegislation. Itischaired bythePrime Minister and,inspecific cases when the
President hastherighttoparticipate, bythePresident.
TheCouncil ofMinisters directs theimplementation oftheState'sdomestic andforeign policy,
realises thegeneral governance oftheState administration, anddirects andcontrols theactivities of
ministers andother central bodies ofStateadministration. Italsomanages therealisation ofwork in
thefieldofnational defence inconformity withthedecisions oftheCouncil ofDefence (seesection
1.3).
4.1.4 Consultative/Advisory Body
Threeinter-ministerialcommittees,functioningasconsultativebodiesoftheCouncilofMinisters,
willbeestablished inearly 1995 according tothenewrules forthefunctioning oftheCouncil of
Ministers prepared inDecember 1994.
These inter-ministerial committees aimtoco-ordinate anddefine governmental policies in
important fields ofState administration activity, specifically economic, social andnational security
policy. Thecommittee meetings arechaired byPrime Minister, orbyamember oftheCouncil of
Ministers authorised bythePrime Minister. Thecommittees organise theirmeetings attherequest
ofthePrime Minister, whodefines themeeting agenda. Thecommittees examines drafts lawsand
draftCouncil ofMinister decisions intheirrespective policy fields, andprovide theCouncil ofMinisters
withtheircomments, evaluations, andrecommendations asinput totheCouncil 'sfinaldecision.
TheCommittee ofEconomic Policy iscomposed oftheMinisters ofFinance, Agriculture and
Food, Mineral Resources andEnergy, Industry, Transport andTrade, Construction andTourism, and
theDirector oftheDepartment forEconomic Development andForeign AidCo-ordination (see
section 4.1.5). TheGovernor oftheBank ofAlbania (seesection 4.1.7) isalsoinvited totakepart
incommittee meetings. Thecommittee examines issues related tothecompilation, implementation
andevaluation ofeconomic policy, andthepreparation oftheStatebudget andmacroeconomic reform.
Withtheestablishment ofthiscommittee, theformer advisory bodyofthegovernment called theGroup
forCoordination ofEconomic Policy terminates itsfunctions.
TheCommittee ofSocial Policy consists oftheMinisters ofLabour, Emigration, Social Welfare
andEx-Political Prisoners, Finance, Health andEnvironment Protection, Education andCulture, Youth
andSports. TheChairman oftheCommittee ofScience andTechnology, andtheDirector ofthePublic
Administration Department (seesection 4.1.5) alsoarecommittee members. Thecommittee addresses
issues concerning thecompilation, implementation andevaluation ofsocial policy, employment, social
protection, social andhealth insurance andtraining.
TheNational Security Policy Committee iscomposed oftheMinisters ofInterior, Defence,
Justice, andForeign Affairs, andthechairman oftheNational Information Service. TheGeneral
Prosecutor (seesection 2.3)alsoisinvited toparticipate. Thecommittee considers issues dealing with
public order, defence, foreign policy, andEuropean integration, including theco-ordination and
harmonisation oflegislation.WT/ACC/ALB/4
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4.1.5 Central Management Bodies
Financial Resources Management
TheMinistry ofFinance isresponsible forpreparing thedraftState budget incollaboration
withother ministries. Theprocedures fortheformulation, enactment andimplementation oftheState
budget aredefined bylaw. ThedraftStatebudget isadopted bythegovernment andsubmitted tothe
Parliament forapproval. Thebudget yearisthecalendar year.
Thecentral administration budget currently represents about 70percentoftheStatebudget.
Thelocalbudget andthesocial security budget make upapproximately 20percentand10percent,
respectively. TheStatebudgetary system isbeing reformed toseparate thelocalbudget andthesocial
security budget from thebudget forthecentral administration.
Economic Development andForeign AidCo-ordination
TheDepartment forEconomic Development andForeign AidCo-ordination wascreated in
June1994 under theauthority oftheCouncil ofMinisters.
TheDepartment co-ordinates foreign aidwithin thegovernment andexternally withdonor
countries andbodies. Itstwokeyinstruments ofwork arethemedium-term programme ofthe
government andthePublic Investment Programme (PIP). TheDepartment prepares thePIP,inco-
operation withtheMinistry ofFinance andpertinent ministries, andsubmits itevery yeartothe
government. ThePIPincludes theproposed annual investments 'budget, financed either byinternal
orexternal resources, aswellastheTechnical Co-operation Programme (TCP).
Inco-operation withtheMinistry ofFinance andtheBank ofAlbania, thedepartment also
analyses the(Economic situation ofthecountry, determines theeconomic development andinvestment
framework andtheamount andconditions ofthenewcredits which areenvisaged. Thedepartment
isresponsible forsubmitting theglobal aidrequirements tothedonors, analysing thedonors 'proposals
andco-ordinating negotiations withpertinent ministries about theforeign aidsupport needed forthe
government 'seconomic reform programme.
Thelineministries, intheroleoftheexecuting agency, areresponsible forimplementing the
sectorial protects andprogrammes.
Thedepartment hastwodivisions. ThePEPdivision, working inclose relation withthe
ministries, defines thepublic investment priorities andpolicies forthedifferent sectors. Theco-
ordination division dealswiththedonor countries, multilateral, economic andtechnical assistance bodies
andinternational financing institutions andbodies.
Public Administration
ThePublic Administration Department wasestablished inSeptember 1994under theauthority
oftheCouncil ofMinisters. Itco-operates closely withtheministries andotherinstitutions ofthecentral
public administration inperforming thefollowing tasks:
- prepare thedraftregulation ofthestructures, tasksandfunctions ofthecentral public
administration,inco-operationwiththeministriesandothercentralpublicadministration
institutions, andsubmit ittothegovernment;WT/ACC/ALB/4
Page41
- elaborate thegeneral policy forthetraining, recruitment, andpromotion ofcivil
servants, prepare aregulation concerning these issues andcontrol itsimplementation;
- organise thereform ofthesalary andrewards systems forcivilservants inconjunction
withtheministries ofLabour, En-figration, Social Welfare andEx-Political Prisoners,
andfinance and
- co-ordinate andensure theimplementation oftechnical assistance provided forpublic
administration.
Human Resources Management
Thehuman resources management system isbeing reformed. Thegovernment, withthe
Department ofPublic Administration astheco-ordinator, ispreparing adraftlawtointroduce acivil
service system. TheMinistry ofLabour, Emigration, Social Welfare andEx-Political Prisoners is
responsible forgeneral employment policy. Inco-operation withthisministry, theDepartment for
Public Administration isresponsible fororganising reforms tothesalary andrewards systems ofcivil
servants.
4.1.6 LineMinistries
Theministries areestablished anddissolved bytheParliament. Albania has13lineministries
asfollows:
- Agriculture andFood;
- Construction andTourism;
- Culture, Youth andSport;
- Defence;
- Education;
- Finance;
- Foreign Affairs;
- Health andEnvironment Protection;
- Industry, Transport andTrade;
- Interior;
- Justice;
- Labour, Emigration, Social Welfare andEx-Political Prisoners, and
- Mineral andEnergy Resources.
TheMinister directs theministry andisresponsible fortheMinistry 'sactivity. Asageneral
rule,eachministry hasavice-minister. Inaddition, theMinistry ofInterior hasaSecretary ofState
forLocal Government andtheMinistry ofForeign Affairs hasaSecretary ofStateforForeign Economic
Relations.
Theminister adopts orders, regulations andinstructions toimplement thelaws, orders and
decisions oftheCouncil ofMinisters. Theactsofministers ofnormative character mustbepublished
intheOfficial Gazette, except specific cases established bylaw.WT/ACC/ALB/4
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4.1.7 Other Bodies
Inaddition totheministries, anumber ofother organisations playanimportant roleincentral
government management. Theyareresponsible forcarrying outspecific tasksinagiven fieldofactivity.
These organisations arelower inrankthantheministries. Their directors arenotmembers ofthe
government, buttheyreport directly tothegovernment. These central government bodies include:
TheBank ofAlbania
TheBank ofAlbania hasfullauthority fortheemission ofmoney andformonetary policy.
ThePresident appoints thebank'sGovernor ontheproposal oftheinstitution 'sSupervisory Board.
Thegovernment appoints theDeputy Governor ontheproposal oftheGovernor. BoththeGovernor
andtheDeputy Governor areappointed forsixyears andtheir appointment isrenewable. The
Supervisory Board hassixmembers, including theGovernor andDeputy Governor, amember appointed
bytheMinister ofFinance, andthree members appointed bythePresident, ontheproposal ofthe
government.
TheNational Agency ofPrivatisation (NAP)
TheNational Agency ofPrivatisation wasestablished under theauthority oftheCouncil of
Ministers todirect thetransformation ofStateproperty intoprivate property. Itisresponsible forthe
management, organisation andco-ordination oftheentire process ofprivatisation and,inparticular,
hasfullauthority concerning themethods ofprivatisation.
Albanian Centre forForeign Investment Promotion (ACFIP)
TheAlbanianCentreforForeignInvestmentPromotionwasestablishedin1993.Itisresponsible
forpromoting foreign direct investment (FDI) through information distribution, consulting, and
establishingpartnerships.Thecentreisalsoanadvisorybodyofthegovernmentforproblemsconcerning
FDI.
TheEnterprises Restructuring Agency (ERA)
TheEnterprises Restructuring Agency wascreated in1993 tosupervise therestructuring of,
andtogivetechnical andeconomical assistance to,approximately 30enterprises. After studying the
situation oftheenterprises, theagency decides onnewmanagement, gives funds andeasycredit and
candecide tototally orpartially privatise theenterprises.
4.1.8 Central Representation atLocal Level
Thecentral government isrepresented atthelocallevels bytheprefects inthe12prefectures.
Each prefecture hasthree orfourdistricts under itsjurisdiction.
Theprefects areappointed bythegovernment. They mustbemore than30years oldandhave
ahigher education. They havetwotasks: (i)toguarantee, byfiling complaints withthedistrict court,
thelegality oftheadministrative decisions made bylocalauthorities; (ii)toco-ordinate theactivities
ofbodies incharge ofStateservices atthelocallevel. Theprefect issues decisions andorders inthe
framework ofthese twocompetencies.WT/ACC/ALB/4
Page43
Each prefecture hasanAdministrative Council which ischaired bytheprefect andcomposed
ofthepresident ofeachdistrict council intheprefecture andthechiefofStateservices intheprefecture.
Thecouncil meets atleastonceevery three months. Itsdecisions arecompulsory forthebodies in
charge ofState services intheprefecture andtheyareimplemented through theprefect 'scabinet.
4.2 Sub-national Government
4.2.1 Regional Government
Theprefect istheauthority entrusted withregional government (seesection 4.1.8).
4.2.2 Local Government
Theorganisation andfunctioning ofthelocalgovernment isbased ontheprinciples ofself-
government, independence, localautonomy anddecentralisation. Local government bodies areelected
directly bythepeople through free,general, equal andsecret vote.
There aretwolevels oflocalgovernment: communes (315) andmunicipalities (45);anddistricts
(36).
Thecommunes andthemunicipalities arethesmallest localgovernmental units. Thecommune
iscomposed ofanumber ofvillages orofasmall townwithsome villages. Thecommune governing
bodies arethecouncil andthechairman ofthecommune. Thechairman isdirectly elected bythe
citizens.
Themunicipalities aresetupintowns which have notbeenincluded incommunes. The
governing bodies ofthemunicipalities arethecouncil andthemayor. Themayor isdirectly elected
bythecitizens.
Thedistrict iscomposed ofanumber ofcommunes andmunicipalities which areinterdependent.
Therepresentative bodyisthedistrict council. Thecouncil members areelected directly bythecitizens
through aproportional system. Thedistrict 'sexecutive bodies, thepresidency (fivetoseven persons
depending ontheadministrative territory ofthedistrict) anditspresident, areelected bythedistrict
council. Thedistrict 'sgoverning bodies areresponsible forco-ordinating theactivity ofthecommunes
andmunicipalities intheirdistrict.
Thepowers oflocalgovernment bodies aredefined bylaw.Local government bodies arelegal
entities. They mayissue normative actswhich haveeffect within theirrespective, administrative
territorial units. They haveassets andproperty recognised bylaw,exercise economic activity within
andoutside theirterritory, andhavetheirownbudget. Thefinancial resources oflocalgovernment,
theiruseandtheirobligations toward theState aredefined bylaw. Local resources represent about
15percentofthelocalgovernment budget andState subsidies represent about 85percent.WT/ACC/ALB/4
Page44
5. OTHER INSTITUTIONS
5.1 Supreme Audit Institution
TheStateControlServiceisthehighestbodyofeconomicandfinancialcontrol.Itisindependent
andissubject onlytotheConstitution andthelaw. Theservice reports to,andisaccountable to,the
Parliament.
TheChairman andtheVice-Chairman oftheStateControl Service areappointed anddischarged
bytheParliament, according totheregulation established bylaw. Theservice 'sorganisation and
competencies aredefined bylaw.
5.2 Trade Unions
TheLawonMajorConstitutionalProvisionsguaranteestherightofemployeestofreelyassociate
inatrade union toprotect theirinterests concerning labour andsocial insurance. TheLawofTrade
Union, which wasadopted on7October 1991, guarantees thefreeorganisation andactivity oftrade
unions. Allworkers canbemembers oftrade union without anypolitical, ideological orreligious
restrictions. Trade unions canbeorganised inthepublic andprivate sector onthebasis ofbranch,
profession orterritory.
6. DELIVERY SYSTEM
Albania 'spublic service delivery system isintheprocess oftransformation.
6.1 Education
Allbasic principles oftheAlbanian educational system areincluded intheLawonMajor
Constitutional Provisions, theHigher Education LawandtheEducational System Law.
Thepublic educational system isfinanced byState budget andisunder theauthority ofthe
Ministry ofEducation.
Theeducational system iscomposed ofpreschool facilities; primary schools; secondary schools
(generalandvocational)andinstitutionsofhighereducation(universitiesandnon-universityinstitutions).
University autonomy isguaranteed bylaw.
6.2 Health
TheLawonMajor Constitutional Provisions provides forallAlbanian citizens theequal right
tohealth carebytheState.
TheHealth CareLawregulates theorganisation ofhealth service inState andprivate health
institutions. TheMinistry ofHealth andEnvironment Protection creates Statehealth institutions and
authorises thecreation ofprivate health institutions under certain regulations.WT/ACC/ALB/4
Page45
6.3 Social Welfare
TheMinistry ofLabour, Emigration, Social Welfare andEx-Political Prisoners isthemain
institution responsible forsocial andemployment policies.
Inaddition, theEmployment, Self-employment andTraining Fund, anindependent government
agency, wasestablished in1993 tochannel public resources toprojects proposed byenterprises and
private entrepreneurs intheareaofnewtraining forworkers, re-training workers from theformer
State-owned enterprises, andimplementation ofmodern labour policies.
Departamenti iAdministrates Publike
TiraneWT/ACC/ALB/4
Page46
ATTACHMENT 2
RECENT TRADE PERFORMANCE
MAIN TRADE INDICATORS
(US$ Million)
1993 1994 1995
1.Trace Balance -489.4 -459.7 -482
Exports 111.7 141.3 188
Imports 601.1 601.0 670
2.Current Acct. Balance 14.7 -147 7
Official Tranfers 280.4 138.8 120
Private Transfers 274.8 260.6 350
3.Trade Balance
(as%ofGDP)-40.0 -23.4 -19.7
4.Current Acct. Balance
(as%ofGDP)1.2 -7.5 0.3
5.Current Acct. Balance (without public
transfers)
(as%ofGDP)-21.7 -14.6 -4.6
6.Foreign Exchange Reserves
(months ofimports)2.4 3.2 3.6WT/ACC/ALB/4
Page47
TABLE 1
Export ByTop25Countries
CountriesValue inMillion Leks
1994 9/1995
Italy 6930.1 7012.9
Greece 1380.1 1334.5
Macedonia 623.5 715.9
Belgium 574.5 1334.5
Germany 636.9 520.2
USA 1475.5 348.7
France 280.3 102.9
Japan 189.5 244.4
Slovenia 85.5 827.6
Turkey 142.6 112.9
Switzerland 82.8 122.9
Croatia 63.2 135.9
Austria 321.9 12.5
Bulgaria 73.2 1.8
Spain 0.2 0.3
Hungary 33.1 3.5
United Kingdom 2.3 1.7
Poland 0.1 178.6
Netherlands 18.5 5.1
Romania 6.9 43.5
Russia 5.1 3.2
China 10.3 4.3
Australia 0 135.9
Norway 0.1 0
Source: Ministry ofIndustry, Transport andTrade Institute ofStatisticsWT/ACC/ALB/4
Page48
TABLE No.2
Import ByTop25Countries
CountriesValue inMin.Leks
1994 9/1995
Italy 19313.5 15593.6
Greece 13305.4 11047.8
Germany 2839.1 2044.2
Bulgaria 4638.1 3996.7
Macedonia 1367.2 1034.6
Turkey 2578.8 1663.3
France 970.3 520.5
Switzerland 500.9 172.6
Hungary 376.4 262.2
Czech/Slovakia 309.6 207.1
Austria 582.1 1038.7
Poland 30.5 61.6
Belgium 512.1 572.6
United Kingdom 209.1 396.4
Romania 363.4 248.3
China 566.3 116.6
Korea 126.4 23.1
USA 103.4 165.7
Netherlands 191.5 238.5
Croatia 642.5 176.4
Egypt 29.1 43.8
Sweden 189.4 22.2
Denmark 327.1 586.4
Japan 12.2 1.2
Norway 11.1 7.8
Source: Ministry ofIndustry, Transport andTrade Institute ofStatisticsWT/ACC/ALB/4
Page49
TABLE No.3
Exports andImports According toMain Commodity Groups
GROUPS
OFCOMMODITYEXPORTS IMPORTS
1994 %of
total1995 %of
total1994 %of
total1995 %of
total
Food, drinks, tobacco 2206.3 16.48 1754.5 12.79 14550.7 28.03 12557.8 29.66
Fuels, minerals and
energy3284.4 24.53 2366 17.25 5775.2 11.12 4453.1 10.52
Chemical products 308.9 2.31 175.6 1.28 3512.6 6.77 3435.3 8.11
Leather products 235.8 1.76 347.5 2.53 441.4 0.85 516.1 1.22
Wood-processed,
paper products451 3.37 925.3 6.75 551.6 1.06 674.3 1.59
Textile andshoes
products5793.5 43.28 5508 40.16 6817.7 13.13 6389.4 15.09
Metals andbuilding
products629 4.7 1418.3 10.34 3177.8 6.12 2970 7.02
Machinery and
Equipment279.1 2.08 204.2 1.49 15341.1 29.55 9918.1 23.43
Others 198.9 1.49 1015.2 7.4 1745.5 3.36 1418.7 3.35
TOTAL 13387 100 13714.6 100 51913.5 100 42332.8 100
Source: Ministry ofIndustry, Transport andTrade
Institute ofStatistics