RESTRICTED
WORLD TRADE G/TRIMS/N/1/ROM/1
7April 1995
ORGANIZATION(95-0865)
Original: English Committee onTrade-Related Investment Measures
NOTIFICATION UNDER ARTICLE 5.1OFTHE AGREEMENT
ONTRADE-RELATED INVESTMENT MEASURES
Romania
Thefollowing communication, dated 31March 1995, hasbeenreceived fromthePermanent
Mission ofRomania.1
_______________
(i) Description oftheMeasure andoftheMain Features
1. Themeasure fallsunder thecategory 1(a)oftheillustrative list.
2. TheTRIM isapplied bytheRomanian Government under mandatory legislation.
3. TheTRIM isapplied tonewly established companies inindustry, having aforeign capital
participation, towhich foreign investors 'share represents atleastUS$50 million andwas
deposited intocompany 'saccount opened withabank(Romanian legalperson). Thecompany
hastocompletely fulfilitsobligations according tothecompany 'scontract provisions, within
thedelays thereby established, theobtained production should haveanintegration value degree
inRomania ofminimum 60percentandanexport ofminimum 50percentoftheannual value
ofproduction.
4. Thelegislation requires thatthemeasure beapplied onlytonewenterprises withforeign capital
participation.
5. Themeasure represents acondition toobtain thefollowing advantages:
(a) exemption ofcustom duties, foraseven-year period, beginning from thedateof
company 'sregistration, formachines, equipment, installations, imported equipment
necessary fortheinvestment, subscribed asparticipation inkindorpaidfrom own
drawn orborrowed sources;
(b) exemption ofcustom duties, foraseven-year period, estimated from thedateof
company 'sregistration, forrawmaterials, consumption materials, spare parts and
component partsimported fortheowncompany 'sproduction, paidfromowndrawn
orborrowed sources;
1Thereplies inthisnotification follow theorder oftheagreed format fornotifications under Article 5.1,contained in
document G/TRIMS/1.
./.G/TRIMS/N/1/ROM/1
Page2
(c) profit taxexemption forafive-year period, fromthedateofobtaining profit, butnot
more thanforseven years from thestartoftheproductive activity.
Inthecases when, in14years, estimated fromthedateoftheenterprise 'sregistration,
thecompany diminishes itssocial capital sothattheparticipation oftheforeign investor
lowers toanamount under aminimum ofUS$50 million orthecompany isvoluntarily
dissolved, thecompany willbeobliged topayalltaxes andcustoms duties normally
dueforallthefunctioning period.
6. No.
7. Thelawwasadopted bytheSenate andtheChamber ofDeputies intheir seances of
20June1994.
8. TheTRIM doesnotinclude provisions foritsphasing-down and/or elimination.
9. Thelawno.71/1994.
10. TheRomanian Development Agency -government level.
(ii) General Information ontheProgramme inQuestion
Thenotified TRIM isapartoftheGovernment programme oftransition toamarket economy
withaviewtoencouraging important foreign investments asasupporting instrument forre-
shaping andmodernizing theeconomy.