RESTRICTED
WORLD TRADE WT/ACC/BGR/2
29May1995
ORGANIZATION(95-1395)
Original: English
ACCESSION OFBULGARIA
Communication from Bulgaria
ThePermanent Mission ofBulgaria hassubmitted theinformation ontheconsistency ofthe
foreign traderégime ofBulgaria withtheWTO Multilateral Trade Agreements andthenotes onTRIPS
andservices reproduced hereunder.
_____________
ACCESSION OFTHE REPUBLIC OFBULGARIA TOTHE WTO
TheRepublic ofBulgaria presents herewith additional information onthecompatibility ofthe
Bulgarian foreign traderégime withtheWTO Multilateral Trade Agreements. Theinformation consists
ofthefollowing three parts:
(page)
PART I.Compatibility oftheBulgarian foreign trade regime withthe
WTO Multilateral Trade Agreements 2-23
Agreement onAgriculture 2
Agreement ontheApplication ofSanitary andPhytosanitary Measures 2-3
Agreement onTechnical Barriers toTrade 3-4
Agreement onTrade-Related Investment Measures 5
Agreement ontheImplementation ofArticle VIoftheGATT 1994 6-17
Agreement ontheImplementation ofArticle VIIoftheGATT 1994 17-18
Agreement onImport Licensing Procedures 19-21
Agreement onSafeguard 21-22
Agreement onRules ofOrigin 22-23
Agreement onSubsidies andCountervailing Measures 23
PART II.Trade-Related Intellectual Property Regime 24-28
PART III.Trade-Related Services Regime 29-37
Since thebeginning oftheprocess ofitsaccession, Bulgaria hasprovided themembers ofthe
Working Party withwritten information ontheforeign trade régime ofthecountry aswellaswith
detailed explanations atthefiveWorking Party meetings (please refertotheDraft Report oftheWorking
Party ontheAccession ofBulgaria -Spec(94)20/Rev.1 of28October 1994).
Thepresent information isintended tobealive-document andconcentrates predominantly onthe
compatibility oftheBulgarian legislation withtheWTO obligations.WT/ACC/BGR/2
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PART I.Compatibility oftheBulgarian foreign trade regime withtheWTO Multilateral Trade
Agreements
AGREEMENT ONAGRICULTURE
InJanuary 1995 theRepublic ofBulgaria submitted tothe
Members oftheWPanational offer onagriculture -
Spec(95)4/21.02.95 -andbi-lateral negotiations are
currently being conducted.
AGREEMENT ONTHEAPPLICATION OFSANITARY AND PHYTOSANITARY MEASURES
TheRepublic ofBulgaria submitted written information on
theapplication ofSPSmeasures, listed inthefollowing
GATT documents:
L/7244-July 1,1993 (p.25 para150-155)
L/7309/Rev.1-November 3,1993 (p.48-49)
Bulgaria isasignatory totheCodex Alimentarius andamember oftheInternational Office of
Epizootics andoftheEuropean andMediterranean PlantProtection Organization, aswellasasignatory
totheInternational Plant Protection Convention.
Bulgaria applies theguidelines andrecommendations established bytheCodex Alimentarius
Commission relating tofoodsafety. Asamember oftheInternational Office ofEpizootics itapplies
theguidelines andrecommendations developed under theauspices oftheOffice relating toanimal health
andzoonoses. Bulgaria alsoapplies theguidelines andrecommendations developed under theauspices
oftheSecretariat oftheInternational Plant Protection Convention.
Standards aremandatory under theBulgarian legislation.
Thesanitary andphytosanitary measures applied arescientifically justified andconform tothe
international guidelines andrecommendations.
Allexports andimports ofgoods ofplantoranimal origin aresubject toveterinary andphytosanitary
control intheRepublic ofBulgaria. Such goods, when exported orimported, mustbeaccompanied
byveterinary orphytosanitary certificates.
Inrelationtotestmethods,administrativeprocedures,issuanceofcertificatesormarksofconformity,
theimported goods aregiven treatment nolessfavourable thanthataccorded todomestic products.
Testresults, certificates ormarks ofconformity, issued bytherelevant authorities ofcountries
signatories tointernational andbilateral agreements towhich Bulgaria isaparty, areaccepted in
accordance withtheprovisions stipulated inthesaidagreements.
OnanimalhealthandzoonosestheBulgarianlegislationconsistsoftheLawonVeterinaryActivities,
aRegulation onthestructure andactivity oftheNational Veterinary Medical Administration withthe
Ministry ofAgriculture andFood Industry, aRegulation ontheveterinary sanitary control anda
Regulation onborder veterinary medical control andquarantine.WT/ACC/BGR/2
Page3
Onplanthealth theBulgarian legislation consists oftheLawforProtection ofPlants fromDiseases
andPests (published inState Gazette No.11/1960 withamendments published inState Gazette
No.4/1994), though anewdraftLawforProtection ofPlants from Diseases andPests ispresently
inParliament.
Food security isensured through theimplementation oftheRegulation onsanitary control onthe
import ofgoods, Regulation onhygienic requirements andrules toadditional substances infood,
Regulation onhygienic rulestohighest allowed quantities ofchemical andbiological contaminations
infood-allissued bytheMinistry ofHealth.
AdraftLawonFood Control, which willdefine provisions onfoodsecurity, isinaprocess of
elaboration inBulgaria.
TheRepublic ofBulgaria willnotify onesingle enquiry point.
There isajustified concern about theability oftheRepublic ofBulgaria tofullyapply theprovisions
oftheAgreement asofaccession totheWTO duetothestandards being defined asmandatory under
theBulgarian legislation (f.ex. theBulgarian standards onfoodarestillmandatory, i.e.themodification
fromthestandard requirements oftheformer COMECON isnotyeteffected). Forthisspecific reason
Bulgaria would appreciate tobegranted thepossibility provided under Article 14oftheAgreement
ontheApplication ofSanitary andPhytosanitary Measures anddelay application oftheprovisions of
thisAgreement, other thanparagraph 8ofArticle 5andArticle 7,for24months following thedate
ofentry intoforce oftheWTO Agreement i.e.tillDecember 31,1996.
AGREEMENT ONTECHNICAL BARRIERS TOTRADE
TheCommittee onStandardization andMetrology istheBulgarian Government standardizing
body.
Standards aremandatory under theBulgarian legislation.
TheBulgarianstandardsandtechnicalregulationsarebasedoninternationallyagreedrules,following
anintensive (forthelasttwoyears) process ofharmonization oftheexisting standards withtherelevant
international andregional standards. Inaccordance withaRegulation issued bytheCommittee on
Standardization andMetrology "where relevant international standards existtheymaybeadopted as
national standards".
Allnewregulations thatarecurrently issued bytheCommittee onStandardization andMetrology
areelaborated inconformity withtherequirements oftheCode ofGood Practice inAnnex 3ofthe
Agreement, andoftheISO/IEC Code ofGood Practice.
Theprincipleofnationaltreatmentisapplied.Importedgoodsaregiventreatmentnolessfavourable
thanthataccorded todomestic products.
Thelegislative andinstitutional framework fortheConformity Assessment Procedures isbeing
created (asnosuchpractice existed inthepast). Anetwork oflaboratories forconformity assessment
isalsonotyetfullyestablished.
TheRepublic ofBulgaria willnotify onesingle enquiry point. Theenquiry point willanswer the
enquiriesfromMembersandwillprovidefortherelevantdocumentsandinformationregardingtechnicalWT/ACC/BGR/2
Page4
regulations, standards andconformity assessment procedures adopted orproposed foradoption within
theterritory oftheRepublic ofBulgaria.
Bulgariawouldliketoexpressconcernaboutthepossibilitytoeffecttranspositionofthe"mandatory"
status ofthestandards under theBulgarian legislation into"voluntary" status ofthestandards within
ashort period oftime. Forthisspecific reason Bulgaria requests thatitbegranted atime-limited
exception inwhole from obligations under theAgreement onTechnical Barriers toTrade. Bulgaria
considers an18-month exception asofdateofaccession asareasonable timeperiod forthecomplex
andcostly transposition process tobeeffected inthecountry.
AGREEMENT ONTRADE-RELATED INVESTMENT MEASURES
AttheJuly1994 WPmeeting Bulgaria submitted written
material tothemembers oftheWPontheconformity of
theBulgarian legislation withtherespective WTO
Agreement.
Thedocument isreproduced herebelow.
TheBulgarian Government considers theAgreement asaninstrument reducing, withtheviewto
eliminateintheforeseeablefuture,thetradedistortingeffectofcertaintrade-relatedinvestmentmeasures.
TheAgreement prohibits localcontent andtrade balancing requirements. Thecurrent Bulgarian
legislation doesnotprovide forlocalcontent andtradebalancing requirements intheBulgarian economy.
With respect tonational treatment andquantitative restrictions, theRepublic ofBulgaria will
undertake nottomaintain measures inconsistent withtheprovisions ofArticle IIIandXIofGATT
1994.
However, withdueregard totheunique process oftransition intheeconomy, coupled withthe
extremely adverse effect resulting from thestrict compliance withtheUNsanctions onSerbia and
Montenegro asaneighbouring region forourcountry, ifneedbe,Bulgaria when itbecomes member
oftheWTO willnotify within theprescribed time-limits alltheTRIMS itmight beapplying atthat
timeandwhich would notbeinconformity withtheprovisions oftheTRIMS Agreement.
Itisourunderstanding thatBulgaria could benefit from thetwo-year transition period provided
fortheelimination oftheexisting prohibited measures ifthose arenotified totheGATT asstipulated
intheAgreement.
Thetransparencyinthesectorissecuredasalllegislativeactsareenteringintoforceafterpublication
intheBulgarian State Gazette .WT/ACC/BGR/2
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AGREEMENTONTHEIMPLEMENTATIONOFARTICLEVIOFTHEGENERALAGREEMENT
ONTARIFFS AND TRADE 1994
AttheNovember 1993 WPmeeting Bulgaria notified the
members oftheWPofthelegislation inforce asof
September 15,1993.
Noamendments were introduced since 1993.
Atranslation ofthelegislation isreproduced herebelow.
REGULATION No181from15September 1993 onprotection fromdumped orsubsidized imports
TheCouncil ofMinisters hasdecreed :
Article 1
(1)ThisRegulation establishes therequirements andtherules fortheapplication ofthemeasures to
betaken fortheprotection ofthedomestic market fromdumped orsubsidized imports fromcountries
oforigin orexporting countries.
(2)Forthepurpose ofthisRegulation "levy ofanti-dumping orcountervailing duty" shallmean the
definitive orfinalassessment oftheduty.
Article 2
Anti-dumping dutyshallbelevied inconnection withtheimportation intotheRepublic ofBulgaria
ofaproduct which through theeffects ofdumping causes orthreatens tocause injury totheBulgarian
industry.
Article 3
Forthepurpose ofthisRegulation aproduct exported totheRepublic ofBulgaria shallbeconsidered
tohavebeendumped ifitsexport price islessthanitsnormal value, intheordinary course oftrade.
Article 4
(1)Forthepurpose ofthisRegulation, thenormal value shallbethecomparable price actually paid
orpayable intheordinary course oftrade forthelikeproduct when destined forconsumption inthe
exporting country orcountry oforigin.
(2)When therearenosalesofthelikeproduct intheordinary course oftradeonthedomestic market
oftheexporting country orcountry oforigin, orwhen suchsalesdonotpermit aproper comparison,
thefollowing shallbeused:
1.thecomparable price ofthelikeproduct when exported toanythird country provided itisa
representative price; or
2.thevalue, determined byadding costsofproduction inthecountry ofproduction andareasonable
margin ofprofit. Thecostsofproduction shallbecomputed onthebasisoftheallcosts, intheordinary
course oftrade, inthecountry oforigin. Ifsuchdataisnotavailable orunreliable orisnotsuitable
forusethedetermination shallbeonthebasis of:WT/ACC/BGR/2
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(a)theactual expenses incurred andprofit realized byother producers orexporters inrespect of
production andsalesinthedomestic market ofthecountry oforigin ofthesame general category
ofproducts;
(b)anyother reasonable method, provided thattheamount forprofit soestablished shallnotexceed
theprofit normally realized byother exporters orproducers onsalesofproducts ofthesamegeneral
category inthedomestic market ofthecountry oforigin.
(3)Where aproduct isnotimported directly fromthecountry oforigin butisexported totheRepublic
ofBulgaria fromanintermediate country, thenormal value shallbethecomparable priceactually paid
orpayable forthelikeproduct onthedomestic market ofeither thecountry ofexport orthecountry
oforigin. Thelatter basismight beappropriate, where theproduct ismerely transshipped through the
countryofexport,wheresuchproductsarenotproducedinthecountryofexportorwherenocomparable
price foritexists inthecountry ofexport.
(4)Forthepurpose ofdetermining normal value, transactions between parties which appear tobe
associated ortohaveacompensatory arrangement witheachother maybeconsidered asnotbeing
intheordinary course oftrade unless theBulgarian authorities aresatisfied thattheprices andcosts
involved arecomparable tothose involved intransactions between parties which havenosuchlink.
Art.(5).(1) Forthepurpose ofthisRegulation, theexport priceshallbethepriceactually paidorpayable
fortheproduct soldforexport totheRepublic ofBulgaria netofalltaxes, discounts andrebates actually
granted anddirectly related tothesalesunder consideration, including thedeferred discounts which
areactually granted anddirectly related tothesalesunder consideration.
(2)Incases where there isnoexport price orwhere itappears thatthere isanassociation ora
compensatory arrangement between theexporter andtheimporter orathirdparty, orthatforother
reasons theprice actually paidorpayable fortheproduct soldforexport totheRepublic ofBulgaria
isunreliable, theexport pricemaybeconstructed onthebasisofthepriceatwhich theimported product
isfirstresold toanindependent buyer, oronanyreasonable basis. Insuchcases, allowance shallbe
made forallcostsincurred between importation andresale andforareasonable profit margin. These
costs shallinclude those normally borne byanimporter butpaidbyanyparty either inoroutside the
Republic ofBulgaria which appears tobeassociated ortohaveacompensatory arrangement withthe
importer orexporter.
(3)Such allowance shallinclude thefollowing :
1.usual transport, insurance, handling, loading andancillary costs;
2.customs duties, anyanti-dumping duties andother taxespayable intheimporting country byreason
oftheimportation orsaleofthegoods;
3.areasonable margin foroverheads andprofit andanycommission usually paidoragreed.
Art.6.(1) Theamounts ofthenormal value andtheexport priceshallbecompared asnearly aspossible
atthesame time. When comparing them, adjustments shallbeallowed forthereason oftheexisting
differences in:
1.physical characteristics;
2.import charges andindirect taxes;
3.selling expenses resulting from salesmade :WT/ACC/BGR/2
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-atdifferent levels oftrade;
-indifferent quantities;
-under different conditions andterms ofsale.
(2)Where aninterested party claims anadjustment referred toin(1)above itmustprove thatitsclaim
isjustified.
(3)Anyadjustment setoutinArt.1. shallbemade pursuant tothefollowing rules :
1.Thenormal value asestablished under Art.4. shallbeadjusted byanamount corresponding to
thedifference inthephysical characteristics oftheproduct concerned.
2.Normal value shallbereduced byanamount corresponding toanyimport charges orindirect taxes,
borne bythelikeproduct, when destined forconsumption inthecountry oforigin orexport andnot
collected orrefunded inrespect oftheproduct exported totheRepublic ofBulgaria.
3.Selling expenses :
(a)Normal value shallbereduced bythedirectly related costs incurred forconveying theproduct
concerned fromthepremises oftheexporter tothefirstindependent buyer. Theexport priceshall
bereducedbyanydirectlyrelatedcostsincurredbytheexporterforconveyingtheproductconcerned
fromitspremises intheexporting country toitsdestination intheRepublic ofBulgaria. Inboth
cases these costs comprise transport, insurance, handling, loading andancillary costs.
(b)Normal value andexport price shallbereduced bythedirectly related costs ofthepacking for
theproduct concerned.
(c)Normal value andexport price shallbereduced bythecostofanycredit granted forthesales
under consideration. Theamount ofthereduction shallbecalculated inrespect ofthecurrency
expressed ontheinvoice.
(d)Normal value andexport price shallbereduced byanamount corresponding tothedirect costs
ofproviding warranties, guarantees, technical assistance andservices.
(e)Normal value andexport price shallbereduced byanamount corresponding tothecommissions
paidinrespect ofthesalesunder consideration, including thesalaries paidtothepersonnel wholly
engaged indirect selling activities.
(4)Theamount ofanyadjustment shallbecalculated onthebasisofrelevant datafortheinvestigation
period orthedataforthelastavailable financial year.
(5)Claims foradjustments which haveanadvalorem effect oflessthan0.5% oftheprice orvalue
oftheaffected transactions shallbedisregarded.
Art.7. Allcostcalculations shallbebased onavailable accounting data,normally allocated inproportion
totheturnover foreachproduct andmarket under consideration.
Art.8. Forthepurpose ofthisRegulation, "like product" means aproduct which isidentical inall
respects totheproduct under consideration, or,intheabsence ofsuchaproduct, another product which
hascharacteristics closely resembling those oftheproduct under consideration.
Art.9. Where prices vary, weighted average orsampling techniques shallbeusedasfollows :WT/ACC/BGR/2
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1.normal value shallnormally beestablished onaweighted average basis, export prices shallnormally
becompared withthenormal value onatransaction-by-transaction basis, except where theuseof
weighted averages would notmaterially affect theresults oftheinvestigation;
2.theuseofthemostfrequently occurring orrepresentative prices maybeapplied toestablish normal
value andexport prices incases inwhich asignificant volume oftransactions isinvolved.
Art.10.(1) "Dumping margin" means theamount bywhich thenormal value exceeds theexport price.
(2)Where dumping margins vary, weighted averages maybeestablished.
Art.11. Acountervailing dutymaybeimposed forthepurpose ofoffsetting anysubsidy bestowed,
directly orindirectly, inthecountry oforigin orexport, upon themanufacture, production, export
ortransport ofanyproduct whose release forfreecirculation intheRepublic ofBulgaria causes or
threatens tocause injury.
Art.12. Forthepurpose ofthisRegulation, asubsidy shallbedeemed toexistifthere isafinancial
contribution byagovernment oranypublic bodywithin theterritory ofthecountry inconsideration,
andabenefit isthereby conferred i.e.,where:
1.adirect transfer offunds (e.g.grants, loans, equity infusion), potential direct transfers orliabilities;
2.government revenue thatisotherwise due,isforegone ornotcollected;
3.agovernment provides goods orservices other thangeneral infrastructure, orpurchases goods;
4.agovernment makes payments toafunding mechanism, orentrusts ordirects aprivate body to
carry outoneormore ofthetypeoffunctions illustrated in1.to3.above which would normally be
vested inthegovernment andthepractice, innorealsense, differs frompractices normally followed
bygovernments.
Art.13. Theexemption ofaproduct from import charges orindirect taxes, effectively borne bythe
likeproduct andbythematerials physically incorporated therein, when destined forconsumption in
thecountry oforigin orexport, ortherefund ofsuchcharges ortaxes, shallnotbeconsidered asa
subsidy forthepurpose ofthisRegulation.
Art.14.(1) Theamount ofthesubsidy shallbedetermined perunitofthesubsidized product exported
totheRepublic ofBulgaria.
(2)Inestablishing theamount ofanysubsidy thefollowing elements shallbededucted fromthetotal
subsidy :
1.anyapplication fee,orother costs necessarily incurred inorder toqualify for,orreceive benefit
of,thesubsidy;
2.export taxes, duties orother charges levied ontheexport oftheproduct totheRepublic ofBulgaria
specifically intended tooffset thesubsidy.
(3)Where aninterested party claims adeduction referred toin(2)above, itmustprove thattheclaim
isjustified.WT/ACC/BGR/2
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(4)Where thesubsidy isnotgranted byreference tothequantities manufactured, produced, exported
ortransported, theamount shallbedetermined byallocating thevalue ofthesubsidy, asappropriate,
overthelevel ofproduction orexports oftheproducts concerned during asuitable period. Normally
thisperiod shallbetheaccounting yearofthebeneficiary.
(5)Where theamount ofthesubsidy varies, weighted averages maybeestablished.
Art.15.(1) Adetermination ofinjury shallbemade onlyifthedumped orsubsidized imports are,through
theeffects ofdumping orsubsidization, causing injury i.e.,causing orthreatening tocause material
injury toanestablished Bulgarian industry ormaterially retarding theestablishment ofsuchanindustry.
(2)Injuries caused byother factors, suchasvolume andprices ofimports which arenotdumped or
subsidized, orcontraction indemand, which, individually orincombination, alsoadversely affect the
Bulgarian industry must notbeattributed tothedumped orsubsidized imports.
Art.16.(1) Anexamination ofinjury shallinvolve thefollowing factors, nooneofwhich orseveral
ofwhich cannecessarily givedecisive guidance:
1.volume ofdumped orsubsidized imports, inparticular whether therehasbeenasignificant increase,
either inabsolute terms orrelative toproduction orconsumption intheRepublic ofBulgaria;
2.theprices ofdumped orsubsidized imports, inparticular whether therehasbeenasignificant price
undercutting ascompared withtheprice ofalikeproduct intheRepublic ofBulgaria;
(2)When examining theimpact ofthefactors referred toin(1)above, dueaccount shallbetaken of
theconsequent impact ontheindustry concerned byactual orpotential trends intherelevant economic
factors suchas:
1.production;
2.utilization ofcapacity;
3.stocks;
4.sales;
5.market share;
6.prices (i.e., depression ofprices orprevention ofprice increases which otherwise would have
occurred);
7.profits;
8.return oninvestment;
9.cashflow;
10.employment;
11.other.
Art.17. Adetermination ofthreat ofinjury mayonlybemade where aparticular situation islikely
todevelop intoactual injury. Inthisregard account maybetaken offactors suchas:
1.rateofincrease ofthedumped orsubsidized exports totheRepublic ofBulgaria;
2.export capacity inthecountry oforigin orexport, already inexistence orwhich willbeoperational
intheforeseeable future, andthelikelihood thattheresulting exports willbetotheRepublic ofBulgaria;
3.thenature ofanysubsidy andthetrade effects likely toarisetherefrom.WT/ACC/BGR/2
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Art.18.(1) Indetermining injury theterm"Bulgarian industry" shallbeinterpreted asreferring tothe
Bulgarian producers asawhole ofthelikeproducts ortothose ofthem whose collective output of
theproducts constitutes amajor proportion ofthetotaldomestic production ofthose products.
(2)When Bulgarian producers arerelated totheexporters orimporters orarethemselves importers
oftheallegedly dumped orsubsidized product, theterm"Bulgarian industry" maybeinterpreted as
referring totherestoftheBulgarian producers.
Art.19.(1) Anynatural orlegalperson acting ofbehalf ofaBulgarian industry which considers itself
injured orthreatened bydumped orsubsidized imports maysubmit anapplication totheMinister of
Trade.
(2)Theapplication referred toin(1)above shallbeinwritten andshallcontain sufficient evidence
oftheexistence ofdumping orsubsidization aswellastheinjury resulting therefrom. Theapplication
shallbeaccompanied byawritten standpoint oftheinterested ministry orbody.
(3)Where itbecomes apparent afterexamination thattheapplication isnotinlinewiththeestablished
requirements, thentheapplicant shallbesoinformed andallowed a30daysperiod forrealignments
oftheapplication. Anapplication shallberejected iftheapplicant failed tomeettherequirements set
outabove induetime.
(4)Theapplication maybewithdrawn, inwhich caseproceedings maybeterminated.
Art.20.(1) Theprocedure oninvestigation ofdumped orsubsidized imports, hereinafter referred to
as"investigation", shallbeinitiated uponDecision oftheCouncil ofMinisters following Proposal of
theMinister ofTrade.
(2)ThisDecision shallbepublished intheState Gazette. Thepublication shallcontain information
onthefollowing :
1.thename oftheexporting country orcountries andtheproduct involved;
2.asummary oftheinformation received;
3.theperiod within which interested parties maymake known theirviews inwriting andmayapply
tobeheard orally.
Art.21.(1) Investigations shallbeconcluded within oneyearaftertheirinitiation.
(2)Inspecial circumstances, theCouncil ofMinisters isabletoextend theperiod referred toin(1)
above bynomore thanbysixmonths.
Art.22.(1) Forthecarrying outoftheinvestigation, theMinister ofTrade shallauthorize acommission
which istodetermine theexistence ofdumping orsubsidization. Tothisend,thiscommission shall:
1.seekevidence andinformation itdeems tobenecessary forthecarrying outoftheinvestigation;
2.examine andverify thedatasupplied bytheinterested parties;
3.where necessary, carry outinvestigation inthirdcountries, provided thatthefirms concerned give
theirconsent andthegovernment ofthecountry inquestion hasbeenofficially notified andraises no
objection.WT/ACC/BGR/2
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(2)Officials oftheinterested ministries andbodies maybeauthorized toassist thecommission referred
toin(10)above.
Art.23.(1) Forthepurpose ofthisRegulation, "interested parties" shallinclude:
1.anexporter orforeign producer ortheimporter ofaproduct subject toinvestigation, oratrade
orbusiness association amajority ofthemembers ofwhich areproducers, exporters orimporters of
suchproduct;
2.thegovernment oftheexporting country; and
3.aBulgarian producer ofthelikeproduct oratradeorbusiness association amajority ofthemembers
ofwhich produce thelikeproduct intheRepublic ofBulgaria.
(2)Allinterested parties inaninvestigation shallbegiven theopportunity to:
1.access totheevidence andtheinformation received, provided theprovisions oftheArt.28 are
observed;
2.present inwritten ororally allevidence which theyconsider relevant inrespect oftheinvestigation
inquestion.
(3)Throughout theinvestigation allinterested parties shallhaveafullopportunity fortheprotection
oftheirinterests.
(4)Allexpenditures inconnection withtheattendance oftheproceedings, thesupply ofinformation,
theverification ofthedata, shallbeborne completely bytheinterested parties. Theamount ofthese
expenditures shallneither prejudice anysubsequent decision norpreclude theinvestigation.
Art.24.(1) Request forinformation pursuant toArt.23.(2)1. shallbeaddressed totheMinister ofTrade
inwriting notlaterthan30daysbefore theimposition ofdefinitive anti-dumping orcountervailing
duties.
(2)Theinformation required maybegiven either orally orinwriting.
(3)Theeventualobjectionsoftheinterestedpartiesinconnectionwiththeinformationsuppliedpursuant
toArt.23.(2)1. shallbetaken intoaccount ifsubmitted notlaterthan10daysaftertheinformation
hasbeensupplied totheinterested parties inquestion.
Art.25. Incases inwhich anyinterested party orthirdcountry refuses access to,orotherwise does
notprovide,necessaryinformationwithinareasonableperiod,orsignificantlyimpedestheinvestigation,
preliminary orfinalfindings maybemade onthebasis ofthefactsavailable.
Art.26. Ananti-dumping orcountervailing investigation shallnothinder theprocedures ofcustoms
clearance oftheproduct concerned.
Art.27.(1) Proceedings shallbeconcluded either bythetermination oftheinvestigation orbyacceptance
ofundertakings orbyimposition ofanti-dumping orcountervailing duties.
(2)Theinvestigation shallbeterminated if:
1.theapplicant withdraws theapplication;WT/ACC/BGR/2
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2.during thecourse ofaninvestigation ithasbeendetermined thattheapplication doesnotinclude
reasons forimplementing anymeasures;
3.theinvestigation resulted inalackofsufficient evidence;
4.either themargin ofdumping orthesubsidy orthevolume ofdumped orsubsidized imports, actual
orpotential, ortheinjury isnegligible.
(3)Theinvestigation shallbeterminated uponDecision oftheCouncil ofMinisters following Proposal
oftheMinister ofTrade. Apublic notice shallbegiven ofthisDecision andpublished intheState
Gazette.
Art.28.(1) Information received pursuant tothisRegulation shallbeusedonlyforthepurpose for
which ithasbeenrequested.
(2)Forthepurpose ofthisRegulation, "confidential information" shallmean anyinformation the
disclosure ofwhich islikely tohaveasignificantly adverse effect upon thesupplier orthesource of
suchinformation orwillconstitute abenefit forrivals.
(3)Anyinformation received pursuant tothisRegulation forwhich confidential treatment hasbeen
requestedbyitssuppliershallnotberevealedwithoutspecificpermissionfromthesupplier.Eachrequest
forconfidential treatment shallindicate whytheinformation isconfidential andshallbeaccompanied
byanon-confidential summary oftheinformation.
Art.29.(1) Where, during thecourse ofaninvestigation, undertakings areoffered which theMinister
ofTrade, afterconsultation, considers acceptable, andtheundertaking isaccepted, theproceeding may
terminate without imposing neither provisional nordefinitive duties upon Decision oftheCouncil of
Ministers following Proposal oftheMinister ofTrade.
(2)An"undertaking" shallbeconsidered asaccepted inpursuant of(1)above if:
1.thesubsidy iseliminated orlimited, orother measures concerning itsinjurious effects taken, by
thegovernment ofthecountry oforigin orexport; or
2.thepriceisrevised orexports totheRepublic ofBulgaria cease totheextent thatcanbeconsidered
satisfactory thateither thedumping margin ortheamount ofthesubsidy, ortheinjurious effects thereof,
areeliminated. Incaseofsubsidization theconsent ofthecountry oforigin orexport shallbeobtained.
(3)Undertakings maybesuggested bytheMinister ofTrade, butthefactthatsuchundertakings are
notoffered oraninvitation todosoisnotaccepted, shallnotprejudice consideration ofthecase.
However, thecontinuation ofdumped orsubsidized imports maybetaken asevidence thatathreat
ofinjury ismore likely toberealized.
(4)TheMinister ofTrade mayrequire anyparty from which anundertaking hasbeenaccepted to
provide periodically information relevant tothefulfillment ofsuch undertakings, andtopermit
verification ofpertinent data.Non-compliance withsuchrequirements shallbeconstrued asaviolation
oftheundertaking.
(5)Where anundertaking hasbeenwithdrawn orwhere theMinister ofTrade hasreason tobelieve
thatithasbeen violated andwhere Bulgarian interests callforsuch intervention, hemay, after
consultations andafter having offered theexporter concerned anopportunity tocomment, applyWT/ACC/BGR/2
Page13
provisional anti-dumping orcountervailing duties forthwith onthebasisofthefactsestablished before
theacceptance oftheundertaking.
Art.30.(1) Aprovisional anti-dumping orcountervailing dutyshallbeimposed ontheevidence included
intheapplication totheamount asmaybenecessary toeliminate theinjurious effects during the
investigation only.
(2)Incases referred toin(1),release oftheproducts concerned forfreecirculation intheRepublic
ofBulgaria shallbeconditional upontheprovision ofsecurity fortheamount oftheprovisional duty.
(3)Provisional duties shallhaveamaximum period ofvalidity offourmonths. Thisperiod maybe
extended bynomore thantwomonths.
(4)After expiration oftheperiod referred toin(3),thesecurity shallbereleased andadutytothe
amount determined shallbecollected, unless theproceeding donotconclude itspartial release.
Art.31. Where theconclusions oftheproceeding show thatthere isdumping orsubsidization during
theperiod under investigation andinjury caused thereby, adefinitive anti-dumping orcountervailing
dutyshallbeimposed.
Art.32.(1) Anti-dumping orcountervailing dutyshallbeimposed upon Decision oftheCouncil of
Ministers following Proposal bothoftheMinister ofTrade andoftheMinister ofFinance, dueaccount
being taken ofthespecific characteristics ofanyseparate case.
(2)Thepublic notice oftheimposition ofdefinitive anti-dumping orcountervailing duties shallindicate
thetypeandtheamount ofdutyimposed, theproduct covered bytariff line,thecountry oforigin or
export, theperiod ofvalidity ofthedutyimposed.
(3)Theamount ofsuchduties shallnotexceed thedumping margin ortheamount ofthesubsidy and
itshould remove allopportunities ofcausing orthreatening tocause injury. Suchdutyshould beless
thantheamount referred toabove ifsuchlesser dutywould beadequate toremove theinjury.
(4)Anti-dumping orcountervailing dutyshallbeimposed onadvalorem basis simultaneously and
independently ofthecustoms duties, taxes andother charges.
(5)Where theamount oftheprovisional dutyexceed thatofthedefinitive one,thedifference shall
bereimbursed assoonaspossible.
(6)WhereaproductisimportedintotheRepublicofBulgariafrommorethanonecountry,anti-dumping
orcountervailing dutyshallbelevied atanappropriate amount onanon-discriminatory basis onall
imports ofsuchproduct found tobedumped orsubsidized andcausing injury, other thanimports
from those sources inrespect ofwhich undertakings havebeenaccepted.
Art.33. When determining thecountry oforigin, therelevant provisions oftheBulgarian legislation
shallbeapplied.
Art.34. Noproduct shallbesubject tobothanti-dumping andcountervailing duties.
Art.35.(1) Imposed anti-dumping orcountervailing duties oraccepted undertakings maybesubject
toreview within oneyear.WT/ACC/BGR/2
Page14
(2)Areview pursuant to(1)above maybeheldeither onexofficio basis orupon arequest ofan
interested party, which shallinclude evidence sufficient tojustify theneedforsuchreview.
(3)Where itbecomes apparent thatreview iswarranted, theinvestigation shallbere-opened andcarried
outinaccordance withtheprovisions setoutabove. Suchre-opening shallnotaffect measures applied.
(4)There-opened proceeding shallbeconcluded within 12months.
(5)Where warranted bythereview, themeasures shallbeamended orrepealed.
Art.36.(1) Definitive anti-dumping orcountervailing duties areimposed andundertakings areaccepted
foraperiod notexceeding 5years. Incaseofreview, theperiod ofvalidity shallbeconsidered to
begin from thedateofthepublication ofDecision oftheCouncil ofMinisters bywhich theimposed
duties areamended.
(2)Sixmonths before theexpiration oftheperiod setoutin(1)above apublic notice shallbepublished
intheState Gazette.
(3)Where arequest forareview pursuant toArt.35. hasbeensubmitted nolessthansixmonths before
theexpiration oftheperiod setoutin(1)above, thereview shallbeconcluded within sixmonths.
FINAL PROVISIONS :
1.Theimplementation ofthisRegulation shallbeintheresponsibilities oftheMinister ofTrade,
theMinister ofFinance andtheMinister ofForeign Affairs.
2.TheState bodies shall assist tothebodies referred in1.above fortheimplementation ofthis
Regulation.
AGREEMENTONTHEIMPLEMENTATIONOFARTICLEVIIOFTHEGENERALAGREEMENT
ONTARIFFS AND TRADE 1994
1.UnderthecurrentlyappliedcustomsregulationofBulgaria,salesbetweenrelatedpersonsasprovided
forinArticle 1oftheAgreement onImplementation ofArticle VIIofGATT arenotsubject tospecial
provisions.
Article 1.2.(b) oftheAgreement hasbeenimplemented through Regulation No.35/Feb.26.1992 of
theBulgarian Government (Annex No2,para7(b)oftheFootnote oftheRegulation). Regulation
35/Feb.26.1992 (available attheWTO secretariat) introduced theBulgarian Customs Tariff andthe
establishing ofthecustoms dutiable value ofimported goods (published inState Gazette
20/March.10.1992).
Therearenospecialprovisionsorpracticalarrangementsconcerningthevaluationoflostordamaged
goods.
2.Theprovision ofArticle 4oftheAgreement concerning anoption fortheimporter toreverse the
order ofapplication ofArticles 5and6oftheAgreement isconsistently implemented.
3.Theprovisions ofArticle 5.2.and6.2.oftheAgreement areconsistently implemented.WT/ACC/BGR/2
Page15
4.There arenospecial provisions forcarrying outvalue determinations pursuant toArticle 7ofthe
Agreement.
Therespective Customs Unitistoproduce aProtocol andthusinform theimporter ofthecustoms
value determined incompliance withArticle 7oftheAgreement. Theprohibitions provided forin
Article 7.2oftheAgreement arelaiddown.
5.Theoptions provided forinArticle 8.2.oftheAgreement areapplied. When f.o.b. basisisapplied,
theex-works price isalsoaccepted andtheexpenses described inArticle 8.2.oftheAgreement are
added toit.
6.Therateofexchange ispublished, asrequired byArticle 9.1.oftheAgreement.
7.Confidentiality isensured asrequired byArticle 10oftheAgreement.
8.Therighttoappeal totheRegional Customs Unit, theGeneral Customs Directorate ortheCourt
areopentotheimporter oranyother person. Thelatter being informed oftherighttofurther appeal
tonextinstance inwriting.
9.Regulation No35/Feb.26.1992 provides fortherules ontheapplication oftheAgreement.
Theprovisions ofRegulation No2/1993 (andthesubsequent amendment) ondetermination of
customs dutiable value ofimported second-hand motor vehicles based ontheirengine volume isan
exception totheprovisions oftheAgreement.
10.Theprovisions ofArticle 13oftheAgreement areincorporated inArticle 83oftheRegulation
ontheApplication oftheLawonCustoms. Noadditional explanations havebeenlaiddown.
11.TheGeneral Customs Directorate requires theRegional Customs Units togiveanexplanation in
writing concerning themethod usedforthecustoms value determination.
12.Some oftheInterpretative Notes oftheAgreement havebeenincluded asaFootnote toAnnex
No2ofRegulation No35/Feb.26.1992.
13.Theprovisions ofDecision ofApril 26,1984 ontheTreatment ofInterest Charges inCustoms
Value ofImported Goods (VAL/8) areapplied inpractice.
14.Theincorporation inaLawoftheprovisions ofpara2ofDecision ofSeptember 24,1984onthe
Valuation ofCarrier Media Bearing Software forDataProcessing Equipment isanticipated.
AGREEMENT ONIMPORT LICENSING PROCEDURES
Written information issubmitted indocuments L/7244 and
L/7309/Rev.1
Bulgaria alsopresented totheWPmembers alistbytariff
lineofthenon-tariff measures inforce.
Summing-up oftheinformation isprovided herebelow.
Imports toBulgaria arenotsubject tolicensing unless explicitly otherwise specified.WT/ACC/BGR/2
Page16
Theautomatic licensing isapplied formonitoring purposes onalimited number ofitems. The
automatic import licence isgranted inallcases. There isnolicensing feeorotheradministrative charges
fortheissuance oftheautomatic licence. TheRepublic ofBulgaria isdeveloping amonitoring system
under theCustoms Directorate andbased onthecustoms statistics. However thissystem isnotyet
complete andthisjustifies thenecessity stilltomaintain inalimited number ofcases theoldmonitoring
system through automatic licensing. Nopenalty fornon-utilization ofalicence isapplied.
Anautomatic licence isissued within oneworking day.
Thenon-automatic licensing ismaintained withtheviewto:
-protect thehuman, animal andplant health andlife
-non-proliferation ofnarcotics andpsycho-tropic substances
-monitor trade ingoldandsilver
-secure conservation ofexhaustible natural resources
-monitor trade inarms andmunitions
-dualuseofgoods andtechnologies
Anon-automatic licence isgranted within 2working days.
Theperiod ofvalidity ofanon-automatic import licence istocommence fromthedateofissuance
ofthelicense andexpires atdelivery dateinscribed inthecommercial contract, though notlaterthan
theendoftherespective current year.
Ifthenon-automatic licence application isnotapproved, theapplicant shall, onrequest, begiven
thereason therefor.
TheMinistry ofTrade andForeign Economic Cooperation hastheauthority toissuethelicences.
Inspecific cases (protect thehuman, animal andplant health andlife;non-proliferation ofnarcotics;
tradeinarmsandmunitions; etc.)avisafromtherespective specialized Agency isrequested (Ministry
ofHealth, Ministry ofAgriculture andFood Industry, Ministry ofDefense, Ministry ofFinance etc.).
However, applicants innocases havetoapproach more thanthreeadministrative bodies, including
theMinistry ofTrade andForeign Economic Cooperation.
TheBulgarian import licensing provisions areuniform across thewhole customs territory ofthe
country. Inrespect toissuance oflicences, there isnodiscrimination between private orstate-owned
companies, orforeign invested companies.
Alltheinformation relevant totheprocessing oftheimport licences ispublished inadvance in
theStateGazette (theBulgarian official journal forpublications oflegislative andother normative acts).
Theprocedures onimport licensing currently inplace inBulgaria were elaborated onthebasis
andinconformity withtheprovisions oftheImport Licensing Agreement.
TheMinistry ofTrade andForeign Economic Cooperation istheadministrative bodyresponsible
fortheissuance oftherespective licenses. Alltrading entities, thatencounter import licensing problems
should contact thisMinistry atthefollowing address:WT/ACC/BGR/2
Page17
Ministry ofTrade
andForeign Economic Cooperation
12,Batenberg str.
Sofia 1000
Bulgaria
tel.88-20-11 (operator)
fax:80-39-68
Inadministering foreign exchange regulations Bulgaria doesnotimpose anydifferential treatment
between importers ofproducts notrequiring licenses andthose requiring licences.
Thecurrent Bulgarian legislation requires import licence applicants tosubmit documents confirming
thedatainscribed intheapplication.
Information ontheoverall amount ofquotas ispublished intheStateGazette priortotheeffective
dateoftherequirement (though insome cases thetimeperiod mayhappen tobelessthan21days).
Bulgaria iswilling toabide bytheprovisions oftheAgreement innotifying toother parties the
allocation ofquotas among supplier countries.
TheLawonAdministrative Procedures governs theadministrative andjudicial tribunals andtheir
procedures forthepurpose ofprompt review andcorrection ofadministrative action relating tocustoms
matters andother trade-related matters. According totheprovisions ofthisLaw, anyadministrative
action maybesubject toanappeal.
AsaWTO Member Bulgaria willpublish theinformation required under Article 1intheState
Gazette (theBulgarian official journal) asisalsothecurrent practice .
AGREEMENT ONSAFEGUARDS
AttheNovember 1993 WPmeeting Bulgaria notified the
members oftheWPofthelegislation inforce asof
September 15,1993.
Noamendments were introduced since 1993.
Àtranslation ofthelegislation isreproduced herebelow.
REGULATION No180from 15September 1993
ONIMPLEMENTATION OFSAFEGUARD MEASURES ONIMPORTS INTO THEREPUBLIC
OFBULGARIA
TheCouncil ofMinisters hasdecreed :
Art.1. ThisRegulation establishes rulesfortheimplementation ofthemeasures tobetaken incritical
circumstances forthepurpose ofprotection ofthedomestic market from imported goods when such
import causes orthreatens tocause serious injury totheBulgarian industry.WT/ACC/BGR/2
Page18
Art.2. Ifanyproduct isbeing imported intoBulgaria insuchincreased quantities andunder such
conditions astocause orthreaten tocause serious injury totheBulgarian producers oflikeordirectly
competitive products, measures against market disruption asprovided inthisRegulation maybetaken
inconnection withtheimportation ofsuchproduct.
Art.3. Ifinjury iscaused orthreatened toresult inthemanner setoutinArt.2., thefollowing measures
maybetaken :
1.imposing alevy;
2.imposing aquota onimports;
3.imposing therequirement oflicensing oftheimports;
4.withdrawing oramending import licenses.
Art.4.(1) TheBulgarian producers oftheproduct affected bytheimport referred toinArt.1. have
therighttosubmit totheMinister ofTrade anapplication inwriting. Theapplication must include
evidence oftheexistence ofthecircumstances referred toinArt.2.
(2)Anapplication under paragraph 1shallbeexamined ifitissubmitted onbehalf oftheBulgarian
producers whose collective output ofthelikeordirectly competitive products constitutes amajor
proportion ofthetotalBulgarian production ofthose products.
Art.5.(1) TheMinister ofTrade shalluponconsultations withtheinterested ministries andbodies and
upon notifying inwriting theinterested parties submit totheCouncil ofMinisters aproposal onthe
implementation ofthesafeguard measures setoutinArt.3.1./2./3.
(2)Safeguardmeasuresaffectingabroadsectionofconsumersshallnotbeimplementedbeforecollecting
theopinions oftherelevant trading andconsumer associations.
Art.6. Safeguard measures referred toinArt.3.1./2./3. shallbeapplied uponadecision oftheCouncil
ofMinisters onlytotheextent andforaperiod oftimeasmaybenecessary toprevent orremedy serious
injury andtofacilitate adjustment. Theduration ofthesafeguard measures shallnotexceed oneyear.
Art.7. Theprovisions ofthisRegulation shallbeapplied unless otherwise provided byaninternational
agreement under which theRepublic ofBulgaria isacontracting party.
TRANSITIONAL AND FINAL PROVISIONS:
#1.ThisRegulation shallenter intoforce onthedayofitspublication intheState Gazette.
#2.Theimplementation ofthisRegulation shallbeintheresponsibilities oftheMinister ofTrade
andtheMinister ofFinance.
#3.TheStatebodies shallassist thebodies referred toin2.intheimplementation ofthisRegulation.
AGREEMENT ONRULES OFORIGIN
Bulgaria submitted written information onthesubject in
document L/7244 (page 22-23).WT/ACC/BGR/2
Page19
Government Regulation No.59/of 1991enforced the"Customs Control onGoods thatCross the
State Border" wherein Annex No.3topara. 3ofArticle 29defines therules oforigin (published
inState Gazette No.30/16.04.1991).
Under theBulgarian legislation aproduct isconsidered originating inthecountry where ithas
been wholly obtained orhasundergone substantial transformation. Thecriterion forsubstantial
transformation isashare over50percentinthevalue oftheproduct.
There isnocollisions between theobligations stipulated under theAgreement onrulesoforigin
andthecorresponding provisions oftheBulgarian legislation.
Further amendments inrespect ofthesubstantial transformation anddefining therequirements
tobefulfilled, aswellastheprocedures ofissuance ofassessments oftheorigin areanticipated.
AGREEMENT ONSUBSIDIES AND COUNTERVAILING MEASURES
TheRepublic ofBulgaria submitted written information on
subsidization inBulgaria inthefollowing GATT
documents:
L/7244-July 1,1993 (p.25 para60-63)
L/7309/Rev.1-November 3,1993 (p.24-28)
Bulgaria maintains noexport subsidy onindustrial products andvirtually noproduction subsidies.
However, Bulgaria hasalsodulynoted thepossibilities provided forinArticle 29oftheAgreement
foreconomies intransformation intoamarket economy.
PART II.Trade-Related Intellectual Property Regime
AGREEMENT ONTRADE-RELATED ASPECTS OFINTELLECTUAL PROPERTY RIGHTS
AttheJuly1994 WPmeeting Bulgaria submitted awritten
material tothemembers oftheWPontheconformity of
theBulgarian legislation withtherespective WTO
Agreement.
Thedocument isreproduced herebelow initsupdated
(revised) version.
1.Copyright andRelated Rights
Status oflegislation:
The1993 LawonCopyright andNeighbouring Rights
Compliance withtheTRIPS:
TheBulgarian legislation isincompliance withtheTRIPS Agreement
2.Trade marks
Status oflegislation:
The1968 LawonTrade Marks andIndustrial Samples.WT/ACC/BGR/2
Page20
Compliance withtheTRIPS:
The1968Lawactually introduced TheParisConvention (1967) principles intotheBulgarian legislation.
TheBulgarian legislation haschosen thesystem of"first applicant".but allows exception tothissystem
infavour oftheuserofunregistered trademark incasewhen theprevious usehasbeenproven orin
favour oftheapplicant whohasbegun andhascontinued using hisowntrademark foranuninterrupted
period.
There isnorequirement ofuseintheBulgarian legislation. However theLawprovides forthe
trade mark registration tobecancelled ifnotusedduring 5subsequent years (TRIPS Art.19).There
arenospecial requirements intheBulgarian trademarks legislation (TRIPS Art.20). TheBulgarian
legislationdoesnotcontradicttheconditionssetuponthelicensingandassignmentoftrademarks(TRIPS
Art.21).
AnewLawonTrade Marks (drafted incompliance withtheTRIPS Agreement) isinprocess of
being drafted.
3.Geographical indications
Status oflegislation:
The1968 LawonTrade Marks andIndustrial Designs (TRIPS Art.22)
Draft LawonWines andSpirits (TRIPS Art.23)
Draft LawonTrade Marks
Compliance withtheTRIPS:
Thenotion of"denomination oforigin" iscovered bytheBulgarian legislation (the1968LawonTrade
Marks andIndustrial Designs) asanindustrial property subject. However thenotion of"geographical
indications" isbroader anditsenactment isenvisaged intheDraft LawonTrade Marks presently in
Parliament.
Additional Protection forGeographical indications forWines andSpirits (TRIPS Art.23)is
envisaged inthedraftLawonWines andSpirits.
4.Industrial Designs
Status oflegislation:
The1968 LawonTrade Marks andIndustrial Designs
Draft LawonIndustrial Designs
Compliance withtheTRIPS:
The1968 Lawstipulates a5-year duration oftheprotection.
However, thedraftlawenvisages thatthe5-year duration oftheprotection ofindustrial design
could undergo extension twice. Thus theBulgarian legislation willcomply withtheTRIPS Art.26.
5.Patents
Status oflegislation:
The1993 Patent Law.
Compliance withtheTRIPS:
The1993 Patent Lawmeets allTRIPS criteria onthesubject interaliaof:
-patentability (TRIPS Art.27)
-theexclusive rights ofthepatent owner (TRIPS Art.28)
-conditions ondisclosing theinvention inthepatent application (TRIPS Art.29)WT/ACC/BGR/2
Page21
-limitations totherights ofthepatent owner (TRIPS Art.30)
-revocation (TRIPS Art.32)
-termofprotection (TRIPS Art.33)
-burden ofproof (TRIPS Art.34)
Thedispositions onthepatent usewithout authorization oftherightholder (TRIPS Art.31) are
alsostipulated inthe1993 Patent Law.
However, the1993 Patent Lawdoesnotprovide forprotection ofplant varieties andanimals. A
Draft Lawontheprotection ofplant varieties andanimals, which envisages suchprotection, isin
Parliament. TheDraft Lawisinconformity withtheprovisions oftheTRIPS Agreement.
6.Layout-Designs (Topographies) ofIntegrated Circuits
Status oflegislation:
AdraftLawbeing developed onthebasisoftheTreaty onIntellectual Property onIntegrated Circuits.
7.ProtectionofUndisclosedInformation/ControlofAnti-CompetitivePracticesinContractualLicences
Status oflegislation:
The1991 LawonProtection ofCompetition prohibits unfair competition. Paragraph 1ofArticle 12
oftheLawcontains definition ofunfair competition, while paragraph 2ofArticle 12andArticles
13-15 provide forprohibition ofdifferent casesofunfair competition, including disclosure ofproduction
andcommercial secrets under Article 14.
Bulgarian legislation doesnotcontain theterm"Undisclosed information". Instead ofittheterm
"production andcommercial secret" isapplied. Thedefinition of"production andcommercial secret"
inparagraphs 1and2ofArt.14 oftheLawonProtection ofCompetition concurs withthedefinition
of"undisclosed information" inparagraph 2ofArticle 39ofTRIPS Agreement.
Bulgarian legislation does notprovide special legal protection ofundisclosed information of
pharmaceutical oragricultural chemical products against unfair commercial useasitisrequired under
paragraph 3ofArticle 39.Thesupplement ofparagraph 2ofArticle 12oftheLawonProtection of
Competition withaprovision onprotection ofundisclosed information ofpharmaceutical oragricultural
chemical products isunder consideration.
Enforcement ofIntellectual Property Rights
General Obligation
Theprocedures under Bulgarian legislation concerning enforcement ofintellectual property rights
areinconformity withtheprovisions ofArticle 41ofTRIPS.
Civil andAdministrative Procedures andRemedies
Thecivilandadministrative procedures andremedies inBulgarian legislation concerning enforcement
oftheintellectualpropertyrightscoveredbytheTRIPSAgreementareincompliancewiththeprovisions
ofArticles 42-49ofTRIPS.
Provisional Measures
Theprovisions ofChapter Four, Articles 308-322oftheCivil Process Code areincompliance with
theprovisions oftheArticle 50ofTRIPS.WT/ACC/BGR/2
Page22
Special Requirements Related toBorder Measures
Bulgarian legislation contains general provisions forsuspension ofrelease ofcounterfeit trademark
orpirated copyright goods. Specific provisions andprocedures incompliance withArticles 51-60
ofTRIPS areanticipated.
Criminal Procedure
Bulgarian legislation provides forcriminal penalties tobeapplied incases ofwillful trademark
counterfeiting. ADraft Lawonamendments tothePenal Code, which provides forinteraliacriminal
penalties tobeapplied tocopyright piracy onacommercial scale, wasapproved bytheGovernment
on2March 1995 andsubmitted totheParliament forenactment.
Acquisition andMaintenance ofIntellectual Property Rights andRelated Inter-Partes Procedures
ThePatent Office oftheRepublic ofBulgaria operates incompliance withtheprovisions ofSection
2through 6ofPartIIofTRIPS.
TheDraft LawonTrade Marks envisages application ofArticle 4oftheParisConvention (1967) mutatis
mutandis toservice marks, which isrequired under paragraph 3ofArticle 62ofTRIPS .
Dispute Prevention andSettlement
Bulgarian legislation provides fortransparency oflawsandregulations, andfinaljudicial decisions
andadministrative rulings ofgeneral application, made effective bytheNational Assembly, government
orcourts ofjustice pertaining tothesubject matter ofTRIPS.
Accession oftheRepublic ofBulgaria totheWTO
(Transitional Arrangements)
Where national legislation istobefurther developed inorder tocomply withtheTRIPS Agreement
requirements, thenecessary domestic legislative action willbetaken withtheview thatthe5-year
transitional arrangements period provided forintheTRIPS Agreement bemet.
International treaties, conventions andagreements related tointellectual property.
TheRepublicofBulgariaisasignatorytothefollowinginternationaltreaties,conventionsandagreements
related tointellectual property:
1.Convention Establishing theWorld Intellectual Property Organization (since January 8,1970)
2.Paris Convention fortheProtection ofIndustrial Property Ratification (since June13,1921)
3.Madrid Agreement fortheRepression ofFalse orDeceptive indications ofSource onGoods (since
August 12,1975)
4.Madrid Agreement Concerning theInternational Registration ofMarks (since August 1,1985)
5.Lisbon Agreement fortheProtection ofAppellations ofOrigin andtheirInternational Registration
(since August 12,1975)
6.Patent Cooperation Treaty (since May21,1984)
7.Budapest Treaty ontheInternational Recognition oftheDeposit ofMicroorganisms forthePurposes
ofPatent Procedure (since May8,1978)
8.Nairobi Treaty ontheProtection oftheOlympic Symbol (since May6,1984)
9.BernConvention fortheProtection ofLiterary andArtistic Works (since December 5,1921)
10.Universal Copyright Convention asrevised atParis onJuly24,1971 (since December 5,1921)WT/ACC/BGR/2
Page23
PART III.Trade-Related Services Regime
GENERAL AGREEMENT ONTRADE INSERVICES
InOctober 1995 theRepublic ofBulgaria submitted tothe
Members oftheWPtheBulgarian offer onservices -
Spec(94)46 of26.10.94
Bilateral negotiations onservices arecurrently conducted
withtheinterested WTO members.
Thisinformation provides background dataontrade inservices intheRepublic ofBulgaria, required
foraccession totheWTO, andisdesignated toserveasadditional notes ontheDraft Schedule ofSpecific
Commitments. Itreviews thedevelopment ofnational industries asofend-March, 1995.
1.General
1.1.General description ofthemarket ofservices.
Theservices sectors playaveryimportant roleintheBulgarian economy. Compared tomarkets
forphysical goods, however, theyhavesofarbeenevenlessexposed tointernational competition.
Improvements inefficiency inmostoftheprominent services seem tobelagging behind those inother
industries.Thisispartlyduetothemaintenanceofstateorgovernmentallyapprovedmonopolyindustries
(railtransport, basiccommunications, etc.), totheinfant stageofdevelopment ofanumber ofsubsectors
(esp.inthesectors ofbusiness, telecommunications andentertainment services) andtotheprevailing
small-scale enterprises intheemerging private sector, aswell.
About halfoftheBulgarian GDP iscreated within theservices sectors. Theshare ofservices in
thegross value added (incurrent prices) hasincreased from45.9to53.1percentfortheperiod 19911to
19932.Thisincrease isnotduetotheexpansion oftheservices activities buttotherelatively smaller
contraction ofthesector inrealterms (inconstant prices) ascompared tothatintheindustrial sector
oftheeconomy.
Thepercentage share ofservices sectors inthegross value added in1993 (forcomparison, the
corresponding share in1991 isgiven inparentheses) isasfollows:
-utilities -14.42 (7.61);
-retail andwholesale trade -9.67(6.88);
-general management -5.45(2.92);
-transportation -4.88(5.46);
-construction -4.57(4.07);
-education -4.26(2.85);
-health, sport, other recreational services andtourism -3.97(2.64);
-communications -1.90(1.22);
-financial andinsurance services -1.44(9.99);
-business services -0.95(0.76);
-cultural services -0.67(0.50);
-science andrelated services -0.59(0.88);
-other -0.26(0.11).
The year ofgeneral liberalization ofprices intheBulgarian economy.
Calculations based ondata oftheNational Statistical Institute.WT/ACC/BGR/2
Page24
Services account for44.99 percentoftheemployed intheBulgarian economy in1993 (45,95
percentin1991). Thepercentage share oftheemployed inwholesale andretailtradeinthetotalnumber
ofemployed inservices (asof1993) is21.39, theshare ofthose employed ineducation -19.03, in
health, sport, otherrecreational services andtourism -14.44, intransportation -12.78, inconstruction -
12.41. Theshare ofeachoftheother main services sectors islessthan5percent.
TheBulgarianservicesexportsin1993arevaluedatUSD1,276.4m(incl.444.5moftransportation
services and262.8 moftravel andtourism services). USD1,506.9 mofservices areimported (497.7 m
oftransportation services and256.9 moftravel andtourism services)3.Thecorresponding figures
forthefirstthreequarters of1994arethefollowing: USD682.3 mofexports (272.6 moftransportation
services and262.8 mfortravel andtourism services) andUSD423.5 mofimports (146.9 mand82.0
mcorrespondingly).
Theshare ofservices inthetotalexports ofgoods andservices isincreasing from 19.0percent
in1992 to21.36 percentin1993 and21.61 percentin1994 (nine months). After asmall increase
in1993, theshare ofservices inthetotalimports ofgoods andservices inthefirstthree quarters of
1994 hasfallen to16.21 percent.
There isnocleartrend inthedevelopment ofthebalance offoreign trade inservices. Thedeficit
of1992, amounting toUSD 171.0 m,hasincreased toUSD 230.5 in1993, buthasbeenreplaced by
asurplus ofUSD 258.8 min1994 (January-September).
More thanhalfoftheregistered inward foreign direct investment iseffected inthesectors of
wholesale andretail trade andtransportation.
1.2.General regulatory framework forservices
Since there isnosystematic national codification ontrade inservices, thesupply ofcross-border
services, theprovision ofservices byforeign suppliers established intheterritory oftheRepublic of
Bulgaria (including through themovement offoreign natural person) andtheconsumption ofservices
offoreign suppliers byBulgarian nationals andresidents isdetermined bythegeneral trade andtrade-
related legal regime thatgoverns constitution oflegal entities thatengage inbusiness operations in
theterritory oftheRepublic ofBulgaria, property rights, faircompetition, commercial transactions
andaccess tothelabour market andbysectoral regulation ofcertain service industries.
Constitutionally, thegeneral regulation ofservices isbased onequal treatment ofallnatural and
juridical persons withregard tothelegalandeconomic terms fortheconduct ofbusiness activities,
prohibition oftheabuse ofmonopoly position andunfair competition, statutory protection ofinvestments
andbusiness activities offoreign, aswellasBulgarian natural andjuridical persons4.
Thelegalinstruments ofgeneral application aremandatorily published intheStateGazette which
ensures thattherelevant conditions andterms affecting access toandservices suppliers ’operation in
theBulgarianservicesmarketaremadepubliclyavailable.Retroactivityisallowedonlyonanexceptional
basis.
Balance-of-payments statistics based ondata provided bytheBulgarian National Bank.
Article 19oftheConstitution oftheRepublic ofBulgaria (State Gazette No56/1991).WT/ACC/BGR/2
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2.Policies Affecting Trade inServices
2.1. Bodies withauthority orarolerelevant totheconduct ofservices activities.
Theinstitutional structure oftheBulgarian services market regulation comprises of:
-central andregional governmental executive bodies;
-stateinstitutions withspecial competence;
-regional orlocalauthorities;
-non-governmental bodies.
Thecentral governmental bodies -ministries andcommittees -areauthorized withpowers toadopt
legalinstruments pertaining totherespective services sectors andsubsectors (regulations, rules and
procedures) andtoissue individual administrative actsaddressed toindividual service suppliers5.
Thebodies responsible fortheenforcement ofthemeasures affecting some ofthemostprominent
services sectors arethefollowing:
-PostandTelecommunications Committee -postal andtelecommunications services6;
-Ministry oftheRegional Development andConstruction -construction andrelated engineering
services7;
-Ministry ofTrade andForeign Economic Co-operation -distribution services8;
-Ministry ofScience, Education andTechnology -educational, research anddevelopment, related
scientific andtechnical consulting services9;
-Ministry ofEnvironmental Protection -environmental services10;
-Ministry ofFinance -accounting, auditing andbookkeeping services, taxation services, financial
services11;
-Ministry ofTransport -transportation services12.
State institutions withspecial competence areempowered withauthority relevant toservices or
services-related activities pursuant tospecial legislative acts.Themostprominent intheservices sector
istheBulgarian National Bank. Itisauthorized toregulate some aspects ofthefinancial services sector,
especially withrespect totheissuance oflicences andpermits forbanking activities andforeign exchange
operations, theprudential controls onbanks ’activities andforeign exchange controls13.
Article 115 oftheConstitution oftheRepublic ofBulgaria.
Regulation No114 oftheCouncil ofMinisters of1991 (SG 60/1991 asamended subsequently).
Regulation No236 oftheCouncil ofMinisters of1991 (SG100/1991 asamended subsequently).
Regulation No48oftheCouncil ofMinisters of1995 (SG 23/1995).
Regulation No56oftheCouncil ofMinisters of1995 (SG 24/1995).
Regulation No14oftheCouncil ofMinisters of1992 (SG 10/1992 asamended subsequently).
Regulation No29oftheCouncil ofMinisters of1991 (SG 17/1991 asamended subsequently).
Regulation No49oftheCouncil ofMinisters of1992 (SG 29/1992 asamended subsequently).
Bulgarian National Bank Actof1992.WT/ACC/BGR/2
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There areafewother institutions which playalimited role-mainly intheregulation ofservices-
related matters, such astheNational Statistical Institute (services statistics), thePatent Agency
(intellectual property rights issues), etc.
Localauthorities(municipalitycouncils)areempoweredtoadoptlegalinstrumentsofgeographically
restricted application (regulations, rules anddecisions) pertaining tolocal utilities, environmental
protection, public order preservation andmunicipal realestate property14.
Themostprominentofthenon-governmentalbodiesintheservicessectoraretheBulgarianChamber
ofCommerce andIndustry (registration ofrepresentative offices offoreign persons) andanumber
ofprofessional associations (theAssociation oftheCertified Auditors, theUnion ofArchitects, the
Supreme BarCouncil, etc.).
2.2. Tribunals andprocedures providing forthereview of,orremedies inrelation to,administrative
decisions affecting trade inservices.
Thejudicial tribunals areempowered toexercise control overthelegal consistency andthe
administrative acts(administrative decisions) issued bytheexecutive governmental bodies. Thenatural
andjuridical persons havetheright torequest withthesuperior administrative body and/or bythe
competent tribunals thereview and/or repeal ofthose administrative decisions thataffect theirrights
anddecisions unless exception isexplicitly provided forbylaw15.
2.3. Provisions concerning qualification requirement, technical standards andlicensing and/or
registration requirements forthesupply ofservices.
TheBulgarian legislation provides foranumber ofmeasures relating to:
-qualification requirements applied exclusively toensure thecompetence andtheability tosupply
therespective services, interalia,professional services, construction andrelated engineering services,
educational services, transportation services;
-licensing and/or registration forthesupply ofservices (automatic ordiscretionary) inthesectors
oftelecommunications services, tourism, educational services, retailing services;
-technicalstandardsareintroducedforpurelysafetyandqualityreasonsinthesectorsofconstruction,
telecommunications, transportation.
2.4. State monopolies.
Railtransportation, national postal andtelecommunications networks andservices relating tothe
useofnuclear energy areconstitutionally specified services sectors where statemonopoly maybe
established bylaw16.
2.5. Safeguard measures.
Thefactors thatpre-condition thereservation onpartoftheRepublic ofBulgaria oftherightto
introduce emergency safeguard measures under theterms ofArticle XoftheGATS (ontemporary
Article 22,paragraph 2oftheMunicipal Act(SG 77/1991).
Article 9oftheJudicial System Act(SG 59/1994); Administrative Procedure Act.
Article 18,paragraph 4oftheConstitution oftheRepublic ofBulgaria.WT/ACC/BGR/2
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andnon-discriminatory basisanduponnotification) aretherestructuring oftheservices sectors, serious
difficulties (particularly where these entail social problems), theelimination ordrastic reduction of
thetotalmarket shares heldbynational suppliers, ortheprotection ofnewly emerging services sectors.
2.6. Provisions relating tointernational transfers andpayments forcurrent transactions ofservices.
As"aseverely indebted middle-income country" according totheWorld Bank’sclassification and
inconformity withArticle XIVoftheArticles ofAgreement oftheIMF, theRepublic ofBulgaria
maintains restrictions onpayments andtransfers forinternational transactions onnon-discriminatory
basis under theterms oftransitional arrangement withtheFund. Theexchange controls oncurrent-
account transactions arelimited totherestrictions on:theimport andexport ofBulgarian banknotes
andcoins incirculation bynative andforeign persons17,export incashofforeign currency bynative
andforeign persons18,prohibition onpayments andforeign currency onBulgarian territory19,licensing
offoreign exchange sales20,requirement forpayments andtransfers abroad tobeeffected bybanks
ondocumentary evidence provided21.
2.7. Provisions relating tocapital transactions affecting thesupply ofservices.
Payments andtransfers abroad when related toinvestments andstateorstate-guaranteed lawsrequire
theauthorization bytheBulgarian National Bank withtheprior consent oftheMinistry ofFinance
or-incases where stateparticipation intherelevant company thateffects thetransfer orpayment,
exceeds 50percent-theconsent ofthecentral governmental body exercising thecorporate rights of
thestateinthatcompany22.However, noother foreign exchange controls andrestrictions areimposed
specifically tolimitorprohibit thevarious kinds ofpayments, remittances andtransfers related tothe
foreign investment inflows oroutflows orcontractual arrangements withforeign service suppliers23.
2.8. Subsidies.
Subsidization isapolicy instrument thathaslostinsignificance asaresult oftheburden of
consecutive large budget deficits andtheneedtorestraint government expenses notwithstanding the
necessity tohelptherestructuring economy. Theamount ofsubsidies committed intheDraft 1995
Budget Actofthecentral government for1995 hasdecreased inrealterms bymore thanaquarter
incomparison totheallocated subsidies in1993despite theincrease innominal value. Thepercentage
value ofthesubsidies inthetotalgovernment expenses hasalsodecreased asmeasured byanyindicator.
So,theshare ofcombined subsidies (subsidies tothemunicipalities plussubsidies directly allocated)
Article 2oftheRegulation oftheCouncil ofMinisters ontheExport andImport ofForeign Exchange Valuables (SG 9/1994).
Article 3,paragraphs 1and 2oftheRegulation oftheCouncil ofMinisters ontheExport and Import ofForeign Exchange
Valuables
Article 1,paragraph 1ofRegulation No15 oftheCouncil ofMinisters of1991 (SG 12/1991 aslastamended inSG30/1994).
Article 2,paragraph 1ofRegulation No15 oftheCouncil ofMinisters of1991.
Article 3,paragraph 2ofRegulation No15 oftheCouncil ofMinisters of1991.
Article 3,paragraphs 3and 4ofRegulation No15 oftheCouncil ofMinisters of1991.
Article13, paragraph 1oftheEconomic Activity ofForeign Persons and Foreign Investment Protection Act.WT/ACC/BGR/2
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hasdecreased from23.55 percentin1993to15.14 percentinthe1995draftbudget, while theshare
ofsubsidies directly allocated hasdecreased from 6.45 percentto3.24percentcorrespondingly.
3.Market Access andNational Treatment
3.1. Cross-border supply ofservices.
Foreign persons (juridical persons constituted under therespective applicable law,partnerships
thatarenotjuridical persons, butareregistered abroad astraders, natural persons offoreign citizenship
permanently residing abroad24)aregranted therighttoengage inbusiness activities onnational treatment
basis(unless aderogation fromthenational treatment isexplicitly provided forbylaw)intheterritory
oftheRepublic ofBulgaria without being established therein25.Itisthegeneral legalbackground for
cross-border trade inservices.
Nohorizontal quantity-based tradepolicy instruments areapplied tocross-border supply ofservices.
Asfarasthere aresectoral exceptions these aremeasures provided forbyinternational agreements
(e.g., bilateral air-services agreements, arrangements under theauspices oftheITUandcargo-sharing
arrangements inmaritime transportation) orpertaining tocabotage.
3.2. Supply ofservices through commercial presence.
ThesupplyofserviceswithintheterritoryoftheRepublicofBulgariathroughcommercialpresence,
being akindoftrade activity asdefined bylaw26,requires incorporation through:
-constitution uponjudicial registration withtheDistrict Court ofoneofthefollowing entities: sole
proprietorship, general partnership, limited partnership, limited partnership withshares, limited liability
company orjoint-stock company27;
-setting upofaco-operative bynationals and/or natural persons whoarepermanent residents in
theRepublic ofBulgaria28;
-creation ofabranch upon judicial registration withtheDistrict Court29;
-creation ofarepresentative office upon registration withtheBulgarian Chamber ofCommerce
andIndustry30.
Incaseswhere aforeign natural person istoberegistered asasoleproprietorship, joinsorco-founds
aco-operative, joinsorco-founds ageneral partnership, joinsorco-founds asageneral partner alimited
Article 2,paragraph 1oftheEconomic Activity ofForeign Persons and Foreign Investment Protection Act(SG 8/1992).
Article3, paragraph 1oftheEconomic Activity ofForeign Persons andForeign Investment Protection Act and Article 282of
theTrade Act(SG 48/1991 aslastamended inSG63/1994).
Article 1,paragraph 1oftheTrade Act.
Articles 56-60, 76-98, 99-112, 253-260, 113-157, 158-252 (respectively) oftheTrade Act.
Article 3oftheCo-operatives Act(SG 53/1991).
Articles 17-20 oftheTrade Act.
Article 5oftheEconomic Activity ofForeign Persons and Foreign Investment Protection Act.WT/ACC/BGR/2
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partnership oralimited partnership withshares, permission forpermanent residence isrequired31.
Aforeign natural person oraforeign legalentity thatisnotajuridical person under itsnational law,
mayestablish abranch ifitisofacknowledged tradecapacity under itsnational law32.Theregistration
isnotmandatory onlyforforeign natural persons engaged permanently ontheirownbehalf andon
theirownaccount inagricultural activities, incraftsmanship, inself-employed professions (unless
thisactivity istobequalified asanenterprise under theTrade Act)orinletting ofrooms33.
Theforms offoreign investments through which services canbedelivered intheterritory ofthe
Republic ofBulgaria, arethefollowing:
-companies ’stock orequity shares;
-ownership orlimited property rights overimmovables;
-enterprise ownership;
-bankdeposits;
-bonds treasury billsandother securities issued bythestateorBulgarian juridical persons;
-credits ofnolessthanafive-year maturity;
-ownership rights ofBulgarian companies withforeign participation exceeding 50percentover
immovables;
-capital accruals pertaining totheabovementioned forms offoreign investment34.
They aretoberegistered attheTaxes Department oftheMinistry ofFinance under administrative
procedure applied forstatistical andtaxation purposes35.
Aforeign person oracompany inwhich foreign participation ensures amajority inadopting decisions
orblocks theadoption ofdecisions -directly orthrough other companies withforeign participation,
istoobtain aspecial permission forinvesting in:
-production anddistribution ofweapons, munitions ormilitary equipment;
-banking orinsurance activities, oracquirement ofinterest inbanking orinsurance companies;
-acquisitionofrealestatepropertyrightsingeographicregionsdesignatedbytheCouncilofMinisters;
-prospecting, development orextraction ofnatural resources from theterritorial sea,continental
shelfortheexclusive economic zone;
-acquisition ofparticipation which ensures amajority inadopting decisions orblocks theadoption
ofdecisions inacompany engaged inanyoftheactivities mentioned above36.
Thepermissions areissued byanauthorized foreign investment agency, except forlicenses for
theproduction anddistribution ofweapons, munitions ormilitary equipment, thatareissued bythe
Article 3,paragraph 4oftheEconomic Activity ofForeign Persons and Foreign Investment Protection Act.
Article 3,paragraph 6oftheEconomic Activity ofForeign Persons and Foreign Investment Protection Act.
Article 2oftheTrade Act.
Article 9oftheEconomic Activity ofForeign Persons and Foreign Investment Protection Act.
Instruction No1oftheMinistry ofFinance of11May 1992.
Article 5,paragraph 3oftheEconomic Activity ofForeign Persons and Foreign Investment Protection Act.WT/ACC/BGR/2
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Interministerial Council fortheArms Industry, andlicenses forbanking activities orforacquiring of
interest inbanks, thatareissued bytheCouncil ofGovernors oftheBulgarian National Bank37.
3.3.Supply ofservices through themovement ofnatural persons.
ThesupplyofservicesintheRepublicofBulgariathroughlabourmovementinvolvesthreecategories
offoreign natural persons: permanent residents, temporary-working residents andshort-term visitors.
TheRepublic ofBulgaria accords virtually thesametreatment toitspermanent residents asitaccords
toitsnationals inrespect ofmeasures affecting tradeinservices andassumes thesame responsibilities
withrespect toitspermanent residents asitbears withrespect toitsnationals inaccordance withits
national legislation. They enjoy alltherights andobligations under theConstitution, except forthose
thataresubject totherequirement ofBulgarian citizenship. These exceptions, however, cannot be
introduced byactsoflegislation orregulation other thanlawsortheConstitution itself.
Theaccess totheBulgarian labour market ofnatural persons other thanpermanent residents is
subject tothefollowing legalinstruments:
-visas, work andresidence permits;
-licensing, certification regulations orsimilar limitations onthe“right ofprofessional practice ”
forlicensed professionals.
Foreign natural persons areemployed intheterritory oftheRepublic ofBulgaria subject toprior
issuance ofawork permit bytheMinistry ofLabour andSocial Care38.Work permits areissued
exclusively foraspecific jobandtothelocation identified intheapplicant ’sinitial request andfor
alimited duration (aninitial one-year period thatmaybeextended foruptooneadditional yearfor
atotaltermnottoexceed twoyears). Issuance issubject toalabour market testbased ontwocriteria:
noBulgariancitizensofcomparablestandingapplyingforthisworkorjobandthequantitativerestriction
thatthenumber offoreign employees doesnotexceed 10percentofthepersonnel employed.
Temporary residence permits areissued bytheMinistry ofInternal Affairs onthebasisofagranted
work permit andforitsduration39.Temporary working residents typically include intra-company
transferees andindividual services contractors.
Short-term visas (business visas) areissued according totheapplicable laws, regulations40and
administrative practices forshortperiods withfixedmaximum duration toforeign persons whoremain
non-gainfully employed inBulgaria.
Foreign natural persons engaged inthesupply ofcertain professional services (“licensed
professionals ”)thataregoverned byspecial legislative acts(e.g., educational, engineering, architectural,
legal, medical orveterinary services), mustcomply withrequirements astocitizenship, typeandgrade
ofeducation, professional competence orqualification, membership inprofessional organizations.
Articles 2and 3oftheRegulation No74oftheCouncil ofMinisters of11May 1992 .
Regulation otheCouncil ofMinisters Laying down theConditions fortheIssuance ofWork Permits toForeign Persons in
theRepublic ofBulgaria (SG 4/1993 aslastamended inSG56/1994).
Article 8,paragraph 2oftheForeign Persons ’Entry and Residence intheRepublic ofBulgaria Act.
Regulations NoNo31,32and 33oftheCouncil ofMinisters of1993.