RESTRICTED
WORLD TRADE WT/TPR/G/2
14June1995
ORGANIZATION(95-1570)
Original: French
TRADE POLICY REVIEW
COTE D'IVOIRE
Report bytheGovernment
Inpursuance oftheAgreement establishing theTrade Policy Review Mechanism (Annex 3
oftheMarrakesh Agreement Establishing theWorld Trade Organization), theinitial policy statement
submitted bytheGovernment ofCôted'Ivoire isattached.
_________________________________ ___________________________________________________
Note:Thisreport issubject torestricted circulation andpress embargo untiltheendofthemeeting
oftheTrade Policy Review Body onCôted'Ivoire.Republic ofCôte d'Ivoire WT/TPR/G/2
Page iii
CONTENTS
Page
I. TRADE POLICY OBJECTIVES 1
1.1 General objectives 1
1.2 Sectoral objectives 1
1.3 Côted'Ivoire intheUruguay Round 2
II. GENERAL DESCRIPTION OFTHE IMPORT AND EXPORT REGIME 4
III. TRADE POLICY FRAMEWORK 6
3.1 National lawsandregulations governing theimplementation
oftrade policy 6
3.2 Formation andreview oftrade policies, responsibilities and
institutional functions oftheprincipal bodies responsible for
thisprocess andfortheadministration oftrade policies 6
3.3 Bilateral, multilateral, regional orpreferential trade agreements:
scope ofapplication, duration andobjectives 8
3.3.1 Multilateral agreements 8
3.3.2 Regional agreements 8
3.3.3 Bilateral agreements 10
3.3.4 Other agreements orarrangements 11
3.3.5 Global System ofTrade Preferences among
Developing Countries (GSTP) 11
IV. IMPLEMENTATION OFTRADE POLICIES 12
A. Trade policy measures 12
1. Trade measures acting directly onimports 12
1.1 Registration, documents andinspection 12
1.2 Customs duties 14
(a) Structure 14
(b) Level ofcustoms duties andother taxes 14
(c) Tariff concessions 16
(d) Tariff preferences 16
(e) Tariff regimes granted topriority
enterprises 16
1.3 Minimum import prices 17
1.4 Rules oforigin 17
1.5 Customs valuation 17
1.6 Prohibitions andquantitative restrictions
onimports 18
1.7 State trading 18WT/TPR/G/2 Trade Policy Review Mechanism
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Page
1.8 Technical standards andother requirements 19
(a) Standards, testing andcertification 19
(b) Sanitary andphytosanitary regulation 20
(c) Marking, labelling andpackaging 20
1.9 Government procurement 20
1.10 Anti-dumping, countervailing and
safeguard measures 21
1.11 Measures applied inexporting countries 22
1.12 Freetrade zones, export-processing zones 22
1.13 Prescriptions concerning domestic product content 22
2. Trade measures directly affecting exports 22
2.1 Regulatory framework 22
2.2 Taxes, charges andfeesonexports 22
2.3 Export prohibitions 23
2.4 Quotas andother measures toreduce exports 23
2.5 State trading 23
2.6 Export cartels 23
2.7 Export subsidies 24
2.8 Tariff andfiscal advantages 24
2.9 Export promotion 24
3. Measures affecting production andtrade 24
3.1 Public enterprises andtheprivatization process 24
3.2 Taxandinvestment legislation 25
3.3 Price regulation andmarketing 27
3.4 Legislation oncompetition 27
B. Newdevelopments during theperiod under consideration
concerning theagreements discussed above 28
C. Current programmes fortrade liberalization, including
those agreed inthecontext ofsectoral adjustment
and/or debtnegotiations 29
D. Planned changes totrade policies andpractices 31Republic ofCôte d'Ivoire WT/TPR/G/2
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TRADE POLICIES AND PRACTICES
I. TRADE POLICY OBJECTIVES
1.1 General objectives
Fromthefirstdecadesofitsindependence,Côted'Ivoire'stradepolicyobjectivesweregrounded
ineconomic liberalism andopenness totheoutside.
Thisdualorientation wasreflected inapolicy ofincentives andliberal measures toencourage
bothdomestic andforeign investment, relying inparticular on:
- Anincentive-based investment code;
- aregime toencourage reinvestment;
- acustoms tariff which favoured import substitution.
Theweakness oftheprivate sector, inwhich national operators werevirtually absent, strongly
influenced theState toinvolve itself ineconomic activities, intheform ofheavy investment andan
increasingly heavy regulatory framework. Theprivate sector wasthustosome extent hedged about,
hadaminor roleandgenerally setupinsometimes over-protected niche markets andopenings.
Thesteady fallofthepriceofcoffee andcocoa from1978plunged thecountry intoanextended
period ofrecession, marked byasignificant lossofcompetitiveness, ageneral decline ineconomic
activity, worsening ofthebudget deficit andsoaring public debt.
Atthebeginning ofthe1980s, theIvorian authorities adopted aneweconomic policy consisting
ofaseries ofeconomic andfinancial recovery measures. Thenewpolicy significantly changed the
direction oftrade policy, whose main objective became export-led recovery.
Côted'Ivoire iscurrently going through atransition phase, involving theeconomic stabilization
planandtheprivatization ofenterprises under public ownership. Thisphase should leadtoan
improvement inproductivity andcompetitiveness intheeconomy.
Theimprovementintraderelationswithcountriesinthesub-regionisalsooneofCôted'Ivoire's
trade policy objectives.
Consequently, in1992, Côted'Ivoire decided withother member countries totransform the
West African Monetary Union (WAMU) intoatrueeconomic union. Fortrade policy, thatinvolved
harmonizationoflegislation,unificationofdomesticmarketsandtheimplementationofcommonsectoral
policies inthebasic sectors oftheireconomies.
1.2 Sectoral objectives
Since 1994, theIvorian Government hasbeenresolutely following amore liberal trade policy
inallsectors ofeconomic activity, introducing deregulation ofprices andtrade channels, andgreater
openness tonational andforeign competition.
Intheagricultural sector, Ivorian trade policy objectives arebothtostrengthen traditional
productionanddiversifynon-traditionalagriculturalexports.AgriculturalpolicyparticularlyemphasizesWT/TPR/G/2 Trade Policy Review Mechanism
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promotion offoodcrops anddevelopment ofagro-industry topermit theprocessing ofrawmaterials
andexport ofsemi-finished orfinished products.
Themining andenergy sectors areexpected totakeoffduetosignificant investment inthe
exploitation of:
- Oilreserves, whose production should allow Côte d'Ivoire tobeself-sufficient in
1995/96 andeventoexport inthefuture;
- gold, manganese andnickel deposits; and
- natural gas,which should cover national needs forelectricity, andalsoexports to
neighbouring countries.
Côted'Ivoire expects toplayakeyroleinthesub-region intheservice sector through:
- Development oftheAbidjan Stock Exchange, andbanking andinsurance services;
- promotion ofCôted'Ivoire asatourist destination;
- development ofmeans oftelecommunication; and
- confirmation, inthetransport sector, oftheroleofCôted'Ivoire asthemain transit
andtrans-shipment platform inthesub-region.
Lastly, reform intheindustrial, mining andenergy sectors andintheservice sector should
support andenhance thecountry 'sexport capacity.
1.3 Côted'Ivoire intheUruguay Round
Côted'Ivoire already hasalegalandregulatory framework which meets theobjectives ofthe
Agreement Establishing theWorld Trade Organization (WTO), namely:
- Liberalization ofitsforeign anddomestic trade;
- adoption ofaninvestment codewhich isveryfavourable andopentoforeign economic
developers; and
- establishment ofanational committee forcompetition tocombat fraud anddumping
andaliaison committee between thepublic andprivate sectors responsible forexploiting
theconclusions oftheFinal Acttothecountry 'sbestadvantage.
TheIvorian authorities welcome theadvent oftheWTO asapowerful instrument fordeveloping
andleast-developed countries, resulting from:
- Special anddifferential treatment andnewstrengthened world traderuleswhich more
effectively protect less-favoured countries against dumping, subsidies and
anti-competitive practices;
- theUruguay Round achievements interms ofmarket access which mayallow
Côted'Ivoire todiversify considerably itsexports tocountries withwhich hitherto it
hadverylittleinthewayoftrade relations.Republic ofCôte d'Ivoire WT/TPR/G/2
Page 3
Côted'Ivoire nevertheless regrets theerosion ofitspreferential tradeposition intheEuropean
Union market. Itbelieves, however, thattherealopportunities fordiversification willinthefuture
compensate fortheerosion oftheagricultural preferences under theLomé Convention.
Côted'Ivoire ratified theFinal ActinJanuary 1995. Since Ivorian lawwasinconformity
withtheFinalAct,nomajor legislative changes willbenecessary. Asindicated above, theliberalization
process wasalready under way.
Côted'Ivoire submitted itsinitial commitments in1992. Itsoffers maybesummarized as
follows:
With regard toagriculture, Côted'Ivoire undertook tobinditscustoms tariffs ataceiling of
15percent,withtheexception of25tarifflineswhere therespective duties havebeenreduced torates
ranging from 4to64percent. Theother duties andtaxes onallagricultural products werelisted at
cumulative ratesvarying between 15and80percent.
Withregard toindustrial products, ninegroups ofproducts (certain rubber products, engines,
spare parts andtractors) were bound atlevels ranging from 5to15percent.WT/TPR/G/2 Trade Policy Review Mechanism
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II. GENERAL DESCRIPTION OFTHE IMPORT AND EXPORT REGIME
Imports toCôted'Ivoire, exports andre-exports outofCôted'Ivoire, under whatever customs
regime, foreign goods ornot,regardless oforigin andfrom allsources arefree,withtheexception
ofafewproducts which arestillsubject torestrictions. These areasfollows:
- Coffee andcoffee products;
- husked rice;
- ricesimply husked;
- riceforgeneral consumption;
- broken rice;
- refined sugar inpowder orlumps;
- other sugars insolid form;
- unmanufactured tobacco;
- petroleum products:
- rawpetroleum oilorbituminous minerals;
- white spirit;
- other special fuels;
- aviation fuel;
- super fuel;
- motor fuel;
- other lightoils;
- jetfuel;
- lamp oil;
- other oils;
- diesel oilDDO;
- gasoil;
- domestic fueloil;
- lightfueloil;
- heavy fueloilI;
- heavy fueloilII;
- lubricating oilsformixing;
- other petroleum oilsorbituminous mineral oils;
- boxes ofmatches;
- usedtyres fortheretread industry; other usedtyres;
- textile articles:
- woven fabrics ofcotton;
- woven cloth from synthetic staple andartificial fibres;Republic ofCôte d'Ivoire WT/TPR/G/2
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- usedbagsforpackaging;
- second-hand goods;
- agricultural andforestry handtools:
- machetes;
- other agricultural, horticultural andforestry handtools;
- usedmotor vehicles forthetransport ofpassengers orgoods;
- chairs made ofrattan, wicker, bamboo andsimilar materials
Itshould berecalled thatthese products willbesubject toprogressive liberalization upto
1January 1997, theyearwhen allimport quotas willbefinally abolished.WT/TPR/G/2 Trade Policy Review Mechanism
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III. TRADE POLICY FRAMEWORK
3.1 National lawsandregulations governing theimplementation oftrade policy
Theprincipal legislative andregulatory textsfortrade arethefollowing:
- Customs LawNo.64-291 of1August 1964, containing general provisions onimport
andexport ofgoods; formalities forcustoms declaration andvaluation andforpayment
ofduties andtaxes; reimbursement ofduties; temporary admission; transit and
warehousing; organization andfunctioning oftheCustoms Administration; appeal
procedures andprovisions concerning breaches ofcustoms regulations;
- LawNo.91-999 of27December 1991 oncompetition;
- Decree No.93-313 of11March 1993 issued jointly bytheMinister Responsible to
thePrime Minister fortheEconomy, Finance andPlanning, andtheMinister for
Industry andTrade.
ThisDecree contains theprincipal non-tariff measures applicable toexports andimports. Its
Annex Acontains thelistofprojects subject totheregime ofapproval orprior authorization bythe
relevant technical ministries.
Theproducts listed initsAnnex Baresubject totherestriction regime.
These products aresubject toaprogressive liberalization which should becompleted atthe
latest by1January 1997.
Ordersanddecisionstakenbythecompetentministers,complementarytothePresidentialDecree,
serve toimplement theprinciples oftheneweconomic policy adopted bytheIvorian authorities to
comply withitscommitments totheWTO.
3.2 Formationandreviewoftradepolicies,responsibilitiesandinstitutionalfunctionsoftheprincipal
bodies responsible forthisprocess andfortheadministration oftrade policies
Aspartofitsfunctions, theMinistry forTrade andIndustry isresponsible fordefining,
developing andimplementing Côted'Ivoire 'strade policies.
Other Ministries areinvolved intheirrespective fields, informulating tradepolicy. However,
theMinistry ofIndustry andTrade isresponsible forcoordination.
TheMinistry ofIndustry andTrade comprises oftechnical departments fordomestic tradeand
craft industries, promotion offoreign trade, technology andindustrial infrastructure, industrial
development, metrology, competition andprevention offraud.
TheMinistryforEconomyFinanceandPlanningresponsibletothePrimeMinister,hastechnical
services which playanimportant partinimplementing national tradepolicies, namely thedirectorates
forthebudget,treasuryandcredit,forecastsandstatistics,theDirectorate-GeneralforCustoms,customs
revenue andcustoms surveillance.
National tradepolicy isdeveloped andimplemented under theauthority ofthePrime Minister.Republic ofCôte d'Ivoire WT/TPR/G/2
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InCôted'Ivoire, theEconomic andSocial Council (aconsultative Assembly of120members)
represents themainsectors ofeconomic activity, promotes cooperation among thevarious professional
categories, andcoordinates theirparticipation inthesocial andeconomic policy ofthenation.
Under theConstitution, theCouncil gives itsopinion onproposals ofasocial andeconomic
nature. TheCouncil undertakes studies andgives opinions oneconomic, social andfinancial matters,
onitsowninitiative orattherequest ofthePresident oftheRepublic orthePresident oftheNational
Assembly.
Itsopinions aretransmitted tothePresident oftheRepublic, whoisresponsible fortheir
publication intheOfficial Journal.
Inthecourse oftrade policy formulation, theprivate sector isalsorequested toparticipate
through thefollowing chambers ofcommerce andprofessional organizations:
- Chamber ofAgriculture;
- Chamber ofCommerce andIndustry;
- Association ofImporters, Exporters andRetailers (SCIMPEX);
- Professional Association ofBanks andFinancial Institutions ofCôted'Ivoire (ABP);
- Central Organization ofPineapple andBanana Producers andExporters (OCAB);
- Sectoral Community Group forRawProducts ofWest Africa (CRUAO);
- Fishing BoatOwners Union;
- Côted'Ivoire Timber Exporters andMerchants Union;
- Côted'Ivoire National Traders Union;
- Côted'Ivoire Industrialists Union;
- Union ofIndustrial Timber Producers (SPIB);
- Union ofForwarding Agents;
- Côted'Ivoire Union ofHorticultural Producers (UPHCI);
- Côted'Ivoire Union ofShipping andConsignee Companies (SYNDINAVI);
- WCT Businessmen 'sClub;
- Côted'Ivoire Employers Union.
Likewise, certain Stateagencies concerned withindustry andtradecontribute tothepreparation
ofimplementation ofnational trade policy. Themain onesare:
- TheAbidjanInternationalTradeCentre(CCI-A),whoseroleistopromotetradebetween
Côted'Ivoire andother countries;WT/TPR/G/2 Trade Policy Review Mechanism
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- theAgricultural Produce Price Stabilization andSupport Fund (CSSPPA), which is
responsible fororganizing themarketing ofcocoa, coffee, cotton, sugar andvegetable
oilsinCôted'Ivoire. Itsobjective istoguarantee astable price toproducers. Atthe
beginning ofeachseason, itfixesascaleofprices totheproducer andremuneration
ateachstageofthemarketing chain. Thepriceisfixedbydecree priortothebeginning
oftheseason. Thestabilization fundalsocontrols thequality ofcocoa beans. Itrefers
tointernational market prices toguarantee theprice toexporters through asystem of
support andreimbursement;
- theSociété dedéveloppement desplantations forestières (SODEFOR), responsible for
forestry management, re-afforestation andsaleofstanding timber toforestry operators;
- Palmindustrie, which controls theproduction, transformation andmarketing ofpalm
oil.Exports arearesidual activity forPalmindustrie;
- theCompagnie ivorienne dedéveloppement detextiles (CIDT), responsible forthe
production, management andmarketing ofcotton;
- theSociété pourledéveloppmenent desplantations decanne àsucre (SODESUCRE),
responsible forproduction andmarketing ofsugar. SODESUCRE exports 7,000 tonnes
totheUnited States and10,000 tonnes totheEuropean Union, under thequota set
outintheLomé Convention;
- theSociéténationaled'operationspetrolièresdelaCôted'Ivoire(PETROCI),responsible
forprospection andexploitation ofpetroleum.
3.3 Bilateral, multilateral, regional orpreferential tradeagreements: scope ofapplication, duration
andobjectives
3.3.1 Multilateral agreements
Asacontracting party totheGATT since 31December 1963, Côted'Ivoire isafounding
member oftheWorld Trade Organization.
Côted'Ivoire isamember oftheWorld Bank, theInternational Monetary Fund, andspecialized
institutions andagencies oftheUnited Nations suchasWHO, ILOandUNDP.
Côted'Ivoire isalsoamember oftheInternational Coffee Agreement, theInternational Cocoa
Agreement, theInternational Natural Rubber Agreement, theCommon Fund forCommodities and
theAfrican Timber Organizations.
3.3.2 Regional agreements
Côted'Ivoire isafounder member oftheWest African Economic Community (CEAO), the
Economic Community ofWestAfrican States (ECOWAS), theWestAfrican Monetary Union (WAMU)
andtheOrganization ofAfrican Unity (OAU).
TheWestAfrican Economic Community (CEAO) wasdissolved inMarch 1993. Itsobjective
wastopromote theharmonized andbalanced development ofeconomic activities inthemember States
through anactive policy ofcooperation andeconomic integration encompassing trade development.
Itwasaneconomic areacharacterized bythefreemovement, freeofallimport duties andtaxes, of
localunprocessed products, andaregional cooperation tax(TCR) applied tocertain industrial products.Republic ofCôte d'Ivoire WT/TPR/G/2
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TheEconomic Community ofWestAfrican States (ECOWAS), established inMay1975, aims
toestablish acustoms union among its16member countries.
Itstaskistopromote cooperation anddevelopment inallfields ofeconomic activity, toincrease
andmaintaineconomicstability,strengthenrelationsbetweenmembersoftheCommunityandcontribute
toprogress anddevelopment intheAfrican continent.
Theprogramme oftrade liberalization adopted in1979 within thiseconomic community
permitted:
- Duty-free treatment ofunprocessed products asfrom November 1979;
- theprohibition inMay1979ofcreating newduties andtaxesorincreasing those applied
togoods manufactured within theCommunity orimported from thirdcountries;
- thelaunching inMay1981 ofaprocess ofdismantling ofcustoms barriers intended
toleadtothetotalabolition ofduties andtaxes ongoods.
Theliberalization ofindustrial products iscontinuing under thefollowing programme:
- CapeVerde,BurkinaFaso,Gambia,Guinea-Bissau,MauritaniaandNigeraretoabolish
theirimport duties overaperiod of10years, atarateof10percentperyear;
- Côted'Ivoire, Ghana, Nigeria andSenegal aretoabolish theirimport duties overa
period ofsixyears, at16.6percentperyear.
TheConseil del'entente, founded inMay1959byBenin, Burkina Faso, Côted'Ivoire, Togo
andNiger hadtheaimofpromoting political solidarity among itsmember States. Itthensetupamutual
assistance andloanguarantee fundtoextend totheeconomic andfinancial sphere thepolitical solidarity
which originally united thefivemember States.
TheWest African Monetary Union (WAMU), setupbyBenin, Burkina Faso, Côted'Ivoire,
Mali, Niger, Senegal andTogo, wastransformed intotheWestAfrican Economic andMonetary Union
(WAEMU) inMarch 1994inDakar bythemember States whowereconvinced oftheneedtoextend
totheeconomic domain thesolidarity which already linked them onthemonetary levels.
Theproject isaimed at:
- Strengthening competitiveness ofthefinancial andeconomic activities ofthemember
States inthecontext ofanopen andcompetitive market andarationalized and
harmonized legalenvironment;
- ensuring convergence ofmember States 'economic performance andpolicies through
multilateral monitoring;
- creatingacommonmarketofmemberStatesbasedonfreecirculationofpersons,goods,
services, capital andtherightofestablishment ofpersons exercising anindependent
orsalaried activity, together withacommon external tariffandacommon tradepolicy;
- coordination ofnational sectoral policies byimplementing common actions and,where
appropriate, common policies, particularly inthefollowing fields:WT/TPR/G/2 Trade Policy Review Mechanism
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- human resources, infrastructure, transport andcommunications, environment,
agriculture, energy, industry andmining;
- harmonizinglegislationofmemberStates,particularlytaxregimes,totheextent
necessary toensure theproper functioning ofthecommon market.
Itshould benoted thatthemechanisms forthenewprojects arenotyetinoperation.
3.3.3 Bilateral agreements
Country Date ofsignature Duration
EUROPE
France 24.04.1961 1yearRTA
Switzerland 26.06.1962 1yearRTA
Sweden 27.08.1965 1yearRTA
Norway 30.04.1966 1yearRTA
Denmark 23.11.1966 1yearRTA
Poland 16.05.1967 1yearRTA
Hungary 30.05.1967 1yearRTA
Bulgaria 20.02.1968 2years RTA
Romania 29.05.1975 2years RTA
Yugoslavia 20.05.1975 1yearRTA
Czechoslovakia 07.04.1982 3years RTA
AMERICA
Brazil 27.01.1972 1yearRTA
Argentina 10.07.1980 1yearRTA
Chile 20.06.1987 1yearRTA
India 17.02.1993 1yearRTA
AFRICA
Algeria 28.04.1978 1yearRTA
Tunisia 02.12.1965 1yearRTA
UAR 06.06.1968 2years RTA
Morocco 22.09.1973 1yearRTA
Mauritania 18.03.1974 1yearRTA
Niger 19.02.1963 1yearRTA
Burkina Faso 19.02.1966 1yearRTA
Senegal 15.12.1972 1yearRTA
Liberia 24.08.1972 1yearRTA
Gabon 06.06.1974 1yearRTA
Ghana 03.08.1976 1yearRTA
Cameroon 11.12.1981 2years RTA
Zaire 21.12.1981 1yearRTA
Nigeria 25.03.1982 3years RTARepublic ofCôte d'Ivoire WT/TPR/G/2
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Country Date ofsignature Duration
ASIA
Japan 25.05.1970 1yearRTA
Taiwan 31.08.1981 1yearRTA
People 'sRep.of China 01.12.1984 1yearRTA
South Korea 09.08.1986 1yearRTA
MIDDLE EAST
Israel 19.08.1965 1yearRTA
RTA =Renewal byTacit Agreement.
3.3.4 Other agreements orarrangements
TheCôted'Ivoire isacontracting party totheConvention ofLomé associating theEuropean
Community to70developing countries insub-Saharan Africa, theCaribbean andthePacific (the
ACP States). Côte d'Ivoire enjoys advantages andpreferences granted intheframework ofthis
Convention.
TheCôted'Ivoire alsoenjoys special access conditions forimports ofbananas totheEuropean
Union.
3.3.5 Global System ofTrade Preferences among Developing Countries (GSTP)
Côte d'Ivoire isnotacontracting party totheAgreement ontheGlobal System ofTrade
Preferences among developing countries (GSTP).WT/TPR/G/2 Trade Policy Review Mechanism
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IV. IMPLEMENTATION OFTRADE POLICIES
A. Trade policy measures
1. Trade measures acting directly onimports
1.1 Registration, documents andinspection
Anynatural orlegalperson wishing toexercise aforeign trade activity must firstobtain an
import-export codenumber.
Foreign currency canbeobtained subject totheapproval oftheexternal finance department
bysignature ofaforeign exchange authorization. Thisapproval isgenerally granted without great
difficulty. Allimports ofavalue (f.o.b.) equal toorgreater than1million CFA francs aresubject
toaprior declaration procedure.
Anewdeclaration ismandatory ifthefinaltransaction isconcluded withadifferent supplier
orforanother typeofproduct orintheevent ofanymodification ofthequantity orvalue (inexcess
ofatolerance of10percent) oftheorder.
Certain commodities, notably sugar, wheat andriceforgeneral consumption, mayonlybe
imported bycertain approved enterprises whose import monopoly isbeing progressively eliminated.
Thisisthecaseofrice,formerly imported bytheEqualization Fund, imports ofwhich havebeen
liberalized following thewinding-up ofthatinstitution.
Anygoods ormerchandise imported intotheRepublic ofCôte d'Ivoire aresubject to
pre-shipment inspection forquality andquantity andprice comparison inthecountry oforigin or
provenance.
Theinspection ofquality, quantity andprice comparison iscarried outintheCôted'Ivoire
bytheSociété générale desurveillance (SGS).
TheSGSisresponsible inparticular for:
- Indicating items subject tocustoms taxation under thecurrent regulations in
Côted'Ivoire;
- reconciling these items withthose noted onremoval from customs;
- evaluation ofnon-revenue items duetoexemptions andsuspension.
TheSGSchecks goods ofallkinds tobeimported intoCôted'Ivoire attheplace ofproduction,
storage ordespatch. Theverification consists ofphysical inspection ofgoods andacheck oftheir
commercial, technical orhealth characteristics inorder toensure thattheyconform totherelevant
description andspecifications.Republic ofCôte d'Ivoire WT/TPR/G/2
Page 13
Importers arerequired todeclare anytransaction ofanf.o.b. value equal orgreater than
1million CFAfrancs, except forthecases setoutinthelistofcategories ofgoods excluded fromthe
scope oftheSGS. Allcontracts, invoices, orders, letters ofcredit andother related documents must
bearthewords "Inspection SGS" or"Tobeinspected bySGS".
Goods ormerchandise whose f.o.b. value isgreater thanorequal to1.5million CFA francs
must besubmitted forinspection forquality, quantity andprice comparison prior toshipment.
However, goods ormerchandise ofanf.o.b. value between 0.5million and1.5million francs
aresubject torandom checks.
TheSGSissues:
- Either acertificate ofverification (AV) when thecheck doesnotreveal anyquality
defects;
- ortherefusal tocertify (ARA) when thecheck shows upquality defects;
- acertificate ofnon-verification (ANV) foranyimport filewhich hasnotbeenselected
forrandom check.
Thedocument thusissued must bepresented when thegoods areremoved from customs.
TheSGScharges feesatarateof0.75percentofthef.o.b. value oftheimports.
Accelerated customs clearance procedure (PAD)
Thisprocedure allows goods tobecleared in24hours. Itapplies onlytofreshproducts, goods
imported temporarily (except textiles), official aid,goods imported byembassies, andgoods imported
bycertain beneficiary companies.
Allimports orexports ofgoods must behandled byanapproved customs agent.
Thecustoms agent isalegalperson responsible forcarrying outcustoms formalities forthird
parties.
Theminimum share capital required forexercise oftheprofession is25million CFAfrancs.
Abond of30million CFA francs issued bytheCaisse autonome d'amortissement (CAA) or
anyother banking institution registered inCôte d'Ivoire isrequired asageneral andpermanent
performance guarantee.
Theapplicant must haveacustoms bond foraminimum of25million CFA francs.WT/TPR/G/2 Trade Policy Review Mechanism
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1.2 Customs duties
(a) Structure
The customs tariff, which isbased onthenomenclature oftheHarmonized Commodity
Description andCoding System (HS), consists ofsome 8,000 linesandeight columns setting outthe
eight main taxes andother variables forinternational trade.
Côted'IvoireaccededtotheInternationalConventionontheHarmonizedCommodityDescription
andCoding System under LawNo.88-1096 of25November 1988. TheConvention wasthesubject
ofImplementing Decision No.001of2January 1992.
Arevision ofthetariff aimed atsimplifying itbegan in1992. Thereform envisaged inthe
context ofthefiscal annex tothe1995Finance Management Lawcomes under thisheading andcovers
thereduction ofthefiscal burden, simplification andharmonization.
Customs duties areapplied tothec.i.f. value ofimports.
(b) Level ofcustoms duties andother taxes
Côted'Ivoire applies three ratesofdutyonimports:
- Auniform customs dutyof5percent, except forproducts enjoying freeentry such
asusedpersonal effects;
- fiscal dutyranging from 5to30percent;
- thestatistical taxestablished byLawNo.90-436 of29May 1990 atarateof
2.5percentwhich isapplied tothecustoms value ofgoods imported anddestined for
direct consumption.
Other advalorem taxes affecting mostimports include ataxof0.6percentonbehalf ofthe
Ivorian Shippers 'Office forallimports bysea.
Tariff surcharges
Surcharges andsurtaxes were abolished in1993.
Changes induties andtaxes
Since thedevaluation in1994, import duties andtaxes haveundergone several changes under
thefollowing orders:
- Orders No.94-23 and94-24 of19January 1994, inCircular No.736of
19January 1994;
- Order No.94-35 of26January 1994;Republic ofCôte d'Ivoire WT/TPR/G/2
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- Orders No.94-485 and94-489 of1September 1994, inCircular No.752of
8September 1994;
- LawNo.94-500 of6September 1994;
- Finance Management Law1994, Circular No.745of9June1994 and745bis.
AllthesechangescomeundertheheadingofaccompanyingmeasuresorderedbytheGovernment
following thedevaluation oftheCFAfranc. They havetheeffect ofreducing import taxesandduties.
Imported products which aremost heavily taxed aretobacco, drinks, textiles, clothing and
furniture.
Special taxes oncertain products
Special taxes arecharged oncertain products:
- Most meat ofbovine animals andswine (HSNos. 0201-0202) aresubject toa
countervailing dutyonimport of40to600CFA francs/kg. Thistaxisintended to
compensate fortheeffect ofexport subsidies onmeatfrom theEuropean Union;
- most frozen fresh fish(HSNos. 0301-0304) aresubject toaspecific import taxof
20CFA francs/kg. excluding allduties andtaxes. Thisistocombat fraud concerning
fishproducts. There isnofiscal dutyorcustoms dutyonfish;
- certain types ofrice(HSNo.100620) aresubject toanadditional import tax(TSR)
of5CFAfrancs/kg. In1995, thistaxwasreplaced byafiscal dutyunder theFinance
Management Law1995;
- certain oils(HSNos. 150710 andfollowing) aresubject toanadditional import tax
(TSO) ranging from 20to40percentadvalorem;
- certain alcoholic drinks (wines, spirits, beer) (HSNos. 2204-2207) aresubject to
additional specific import tax(TBSA) upto2,600 CFAfrancs perlitreofpurealcohol;
- certain non-alcoholic drinks (syrups, softdrinks) (HSNo.2106) aresubject toan
additional specific import tax(TBNA) ranging from2.5to25CFAfrancs perbottle;
- cigars andcigarettes (HSNos.2400-2403) aresubject toanadditional specific tax(TST)
upto19,780 CFA francs/kg.;
- petroleum products forlocal consumption aresubject toaconsumption tax(TSPP)
of129CFA francs perlitre;
- allhunting cartridges aresubject toaspecific import taxof12CFA francs each.WT/TPR/G/2 Trade Policy Review Mechanism
Page 16
Basis ofVAT onimports
ThebasisofVAT onimports isc.i.f. prices plusother taxes andduties (c.i.f. plusfiscal duty
plusRSTA plustaxes other thanVAT).
Advance onvarious taxes (ASDI)
Theadvance onvarious taxes (ASDI) ischarged ongoods imported anddeclared for
consumption.
Itranges from1.5to5percent. Importers ofgoods subject toduty-free treatment andused
personal effects areexempt from ASDI.
Thebasis ofASDI isthevalue onthedomestic market ofimported products (customs value
plusimport taxes andduties).
Pharmaceutical products imported bythepublic health pharmaceutical services areexempt
from ASDI under theprovisions ofArticle 26oftheFiscal Annex tothe1992 Finance Management
Law(Circular No.689of2January 1992).
(c) Tariff concessions
IntheTokyo Round, Côted'Ivoire undertook tobinditscustoms duties atarateof10percent
applicable toallimported products withavalue ofUS$2,200 (GATT 1979, Supplementary Protocol
totheGeneva Protocol annexed totheGeneral Agreement onTariffs andTrade, Geneva,
22November 1979).
IntheUruguay Round, Côted'Ivoire made substantial newconcessions intheformofbindings
andtariff reductions inboththeagricultural andindustrial fields. These concessions arecontained
inSchedule LIIannexed totheMarrakesh Protocol.
(d) Tariff preferences
Products previously subject totheRegional Cooperation Tax(TCR) under theCEAO arenow
subject totheordinary treatment following thedissolution ofthatinstitution.
Local rawmaterials originating inECOWAS areexempt fromduties while industrial products
willbeprogressively liberalized.
(e) Tariff regimes granted topriority enterprises
UndertheprovisionsofLawNo.84-1230of8November1984,ontheInvestmentCode,priority
enterprises enjoy duty- andtax-free treatment ofimports forcertain material andequipment forinitial
investment.
Itshould nevertheless bemade clear thatexemption doesnotapply to:Republic ofCôte d'Ivoire WT/TPR/G/2
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- Materials, toolsandequipment theequivalent ofwhich ismanufactured inCôted'Ivoire
andavailable under thesameconditions ofquality, priceanddelivery times asthesame
goods offoreign origin;
- vehicles forthetransport ofpassengers andgoods andmovable assets offoreign origin;
- vehicles forthetransport ofpassengers andgoods andmovable assets.
Under Article 42oftheFiscal Annex tothe1994 Finance Management Law, materials and
equipment imported through theautonomous ports ofCôted'Ivoire tooperate theirinstallations are
exempt fromallduties andtaxes except foroffice material andsupplies, andvehicles forthetransport
ofgoods orpassengers.
1.3 Minimum import prices
Thereference prices arespecific values (based onnumber, weight, volume, etc.)determined
bytheMinistry fortheEconomy andFinance through anadhoccommittee.
Thereference value canbevoluntarily reduced toreduce thecostpriceonthedomestic market
ofanimported good.
Itthushasaneconomic andsocial effect making itpossible tomake products ofprime necessity
orgeneral consumption more accessible.
Reference prices areprovided forbyDecree No.84-926 of27July1984. Those ofrough
timber were modified byDecree No.90-444 of29May1990 andNo.94-377 of1July1994.
1.4 Rules oforigin
Imports from ECOWAS must beaccompanied byacertificate oforigin inorder toreceive
preferentialtarifftreatment.Communityoriginisrecognizedforallproductswhosemanufacturerequired
rawmaterials ofcommunity origin representing atleast40percentofthetotalprice or60percent
ofthequantity ofimports, orforwhich thevalue added bytheECOWAS manufacturer isatleast
35percentofthef.o.b. priceofthefinalproduct. Approved enterprises mustalsosatisfy aminimum
criterion ofparticipation intheirshare capital bynationals ofECOWAS member countries.
Following thedissolution oftheCEAO, Côted'Ivoire hasapplied twotypes ofrulesoforigin:
theordinary system andtheECOWAS system ofrules oforigin.
1.5 Customs valuation
Under LawNo.92-946 of23December 1992, Côte d'Ivoire adopted theAgreement on
Implementation ofArticle 7oftheGeneral Agreement onTariffs andTrade of1947.
Côted'Ivoire willapply theAgreement oncustoms valuation subject tothereservations deposed
atthetimeofratification oftheWTO Agreement.WT/TPR/G/2 Trade Policy Review Mechanism
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1.6 Prohibitions andquantitative restrictions onimports
Imports ofcertain categories ofgoods which maybeharmful topublic health ormorality are
prohibited.
Exceptions totheregime offreedom ofimport existunder theregime ofapprovals andthe
regime ofrestrictions.
Theapproval regime applies togoods whose import issubject topresentation ofpriorapproval
orauthorization issued bythetechnical ministries concerned.
Therestriction regime covers bothproducts whose import issubject toquantitative restrictions
andproducts whose import isprohibited.
Suchproducts, listed inAnnex BofDecree No.93-313 of11March 1993, willbeprogressively
liberalized overaperiod oftwoyears ending on1January 1996, theyearwhen allquantitative
restrictions willbeabolished, except forarestricted listtobepromulgated bydecree.
Import licensing applies togoods ormerchandise whose import issubject totherestriction
regime.
Import ofsuchproducts issubject toobtaining aquota. Anyquota importer automatically
hastherighttoimport thegoods concerned uptothelimitofthequota obtained.
Itisworth recalling herethat,inaccordance withitsundertakings inthecontext oftheUruguay
Cycle Agreements, Côted'Ivoire isprogressively dismantling allquantitative trade restrictions, and
thisshould becompleted atthelatest by1January 1997.
1.7 State trading
TheEconomic Stabilization andRecovery Planlaunched bytheGovernment includes the
withdrawal oftheStatefromcertain activities bymeans ofprivatization. Thecurrent trend forState
withdrawal fromproduction activities hastaken theformofaconsiderable reduction initsparticipation
ininternational trade.
Inaddition, certain enterprises withpublic, mixed orprivate capital stillhaveimport monopolies
forcertain categories ofproducts. These privileges largely derive fromthesystem ofagreements on
establishment governing investment inCôted'Ivoire since the1960s.
Thesystem willsoonbeabolished asaresult oftherecent adoption ofthenewInvestment
Code.
Atthepresent time, thesituation ofenterprises enjoying animport monopoly forcertain
categories ofproducts isasfollows:
- LesGrands Moulins d'Abidjan: wheat flour(import monopoly) andmilling products
(monopoly ofproduction andmarketing);Republic ofCôte d'Ivoire WT/TPR/G/2
Page 19
- Equalization Fund, formally anexclusive importer ofriceforgeneral consumption
(35percentbroken rice)waswound upinFebruary 1995;
- SODESUCRE:Statemonopolyfortheimportofrefinedsugar.Productionandexports
areexclusively through SODESUCRE;
- SITAB: exclusive importer ofrawtobacco, andmanufactures alldomestic consumption
ofcigarettes produced under foreign licence;
- theAgricultural Produce Price Stabilization andSupport Fund (CSSPPA): coffee
imports;
- SIR: monopoly ofimports ofcrude petroleum. TheSIRisthesoleproducer and
marketer ofrefined petroleum products;
- theIvorianElectricityCompany(CIE)operatesallproduction,transportanddistribution
systems belonging totheCôte d'Ivoire Government andisresponsible forsales of
electric energy.
1.8 Technical standards andother requirements
(a) Standards, testing andcertification
TheIvorian Standardization Body, CODINORM, isanassociation which hastheobjective
ofdeveloping internationally recognized standards inorder toincrease thecompetitiveness ofIvorian
industry andguarantee thequality ofproducts soldinCôted'Ivoire.
CODINORM 'sactivities canbesummarized asfollows:
- Assessing needs fornational standards;
- preparation ofIvorian standards;
- administration ofanational certification system (products andenterprises);
- promotion ofstandardization, certification andquality control;
- technical information onstandardization, certification andquality ingeneral and
assistance toenterprises;
- training inthefieldofquality;
- representation ofCôted'Ivoire ininternational standardization bodies.
Since itscreation, CODINORM hasestablished 272national standards insectors considered
tobepriority, i.e.agro-industry, building andcivilengineering.WT/TPR/G/2 Trade Policy Review Mechanism
Page 20
Ivorian standards apply toallproducts marketed orconsumed inCôted'Ivoire. Theytherefore
concern bothlocalproducts andimported products.
TheIvorian standard serves asabenchmark intheaward ofgovernment contracts.
However, there aretworegimes inforce; optional standards andcompulsory standards.
Compulsory standards concern health, safety andcertain export products inorder tomaintain
thegood reputation ofIvorian products abroad.
Theapplication ofother standards isoptional.
Since 1992, theAdministrative Board, under pressure from theprivate sector, decided that
standards should bedeveloped initially insectors considered tobepriority (forreasons ofhealth and
safety ortoreform themarket). Itwasdecided thatsuchstandards should bemade mandatory.
Control ofconformity ofimported products toIvorian standards isaresponsibility oftheSGS
andtheDepartment forPrevention ofFraud, which deals withallproducts marketed, whether
manufactured locally orimported. Local manufacturers andimporters must supply evidence of
conformity oftheirproducts tomandatory standards, intheformoftestresults, statements orcertificates
ofconformity issued byrecognized bodies. InCôted'Ivoire, certificates ofconformity ormarks of
conformity tostandards areissued byCODINORM.
Standards established byarecognized foreign body aregenerally accepted when there isno
Ivorian standard orwhen theyareinconformity withthestandards established inCôte d'Ivoire.
Certificates ofconformity issued bysuchbodies mayberecognized, forthereisaprocedure formutual
recognition between national standardization bodies.
(b) Sanitary andphytosanitary regulation
Côted'Ivoireappliessanitaryandphytosanitarycontrolmeasures.Forexample,aphytosanitary
certificate issued bytheMinistry ofAgriculture andAnimal Resources isrequired forimports ofplant
products.
Asanitary inspection taxislevied onimports ofmeat, fish,dairy products andpreserved food
products.
(c) Marking, labelling andpackaging
When aproject issubject toastandard, themarking mustmention theenterprise andcountry
oforigin.
1.9 Government procurement
Government procurement accounts foratotalof80to120billion CFA francs. Thenormal
ruleisopeninvitation totender withannouncements inthe"Official Bulletin forInvitation toPublicRepublic ofCôte d'Ivoire WT/TPR/G/2
Page 21
Tendering oftheRepublic oftheCôted'Ivoire" published bytheDepartment ofPublic Procurement
(DMP) every 15days.
Government procurement contracts arewritten contracts awarded under conditions laiddown
intheGovernment Procurement Code, Decree No.92-08 of8January 1992 enacting onthePublic
Procurement Code, bytheState, public institutions, localauthorities andmoregenerally bylegalpersons
under public law,andStatecompanies, withoneormore natural orlegalpersons under private law,
forthepurpose ofdelivery ofsupplies, provision ofservices orperformance ofworks, inreturn for
payment ofasumofmoney.
Thethresholds requiring public tendering, from 1July1994, are15million fortheState,
25million forlocal authorities (60million within theSectoral Adjustment andCompetitiveness
Programme-PASCO)andpublicinstitutionsofanadministrativenature,40millionforpublicinstitutions
ofanindustrial andcommercial nature and120million forother contracting authorities. Below these
thresholds, noparticular formality isrequired.
Tender documents areprepared bythecontracting authorities, ifappropriate supported bya
Project Supervisor (Central Directorate ofMajor Works, Directorate ofConstruction andRepair, in
particular), bytheDepartment ofGovernment Procurement (DMP).
Award ofcontracts ispreceded byanopinion oftheConsultative Committee onGovernment
Procurement. ThisCommittee basically verifies thatthecontract complies withupstream decisions
(tender documents, evaluation report, arithmetical calculations) andavailability offinance.
TheIvorian Government Procurement Code provides forrestricted tendering ornegotiation
without public invitation totender when theneeds tobesatisfied concern specialist supplies, services
orworks orrequire aparticular technology forwhich there arefewcandidates capable ofbidding.
Insuchcases, thecontracting authority draws upashortlist ofcandidates.
Recourse totheexceptional procedure issubject totheprior authorization oftheMinister for
Government Procurement, fixing thelistofapproved candidates.
There arenorestrictions (except those concerning lenders) concerning participation inpublic
procurement offoreign enterprises orenterprises owned byforeign nationals, except, incertain cases,
"toberesident orrepresented inCôted'Ivoire, ortoundertake sotobe",norconcerning origin of
theirmaterial orhuman resources tocarry outcontracts.
Forcontracts forworks andstudies, andcertain other types ofcontracts, theprinciple of
temporary admission ofcertain plant, toolsandequipment isincluded inthespecifications, inparticular
when suchcontracts areconsidered likely tointerest foreign firms. Thisprinciple alsoapplies tonational
enterprises under thesame conditions andmayalsoapply toimplementation ofcontracts which do
notexplicitly soprovide.
1.10 Anti-dumping, countervailing andsafeguard measures
Côted'Ivoire doesnothaveanyspecific legislation concerning anti-dumping orcountervailing
duties.WT/TPR/G/2 Trade Policy Review Mechanism
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1.11 Measures applied inexporting countries
TheIvorian Government hasnotbeen informed oftheapplication, byother countries, of
measures regulating exports toCôted'Ivoire.
1.12 Freetrade zones, export-processing zones
Atthepresent time, there arenofreetrade zones inCôted'Ivoire.
1.13 Prescriptions concerning domestic product content
InCôted'Ivoire, there arenoprescriptions applicable todomestic product content.
2. Trade measures directly affecting exports
2.1 Regulatory framework
Despite theintroduction ofaveryliberal regulatory regime forforeign trade, particularly
concerningexportsandtheadoptionofaSectoralAdjustmentandCompetitivenessProgramme(PASCO),
several elements ofwhich include regulatory reforms withadirect impact onexports, there arestill
constraints which place abrake onexports.
These are:
- complexity ofexport procedures;
- complexity andslowness oftemporary admission procedures andreimbursement of
VAT;
- regulations andpractices concerning maritime andairfreight.
Theexport ofIvorian products intoandoutofthefranc areaisbased ontheproduction of
detailed declarations (D6,D5,D8,D86).
2.2 Taxes, charges andfeesonexports
Côted'Ivoire applies export taxes tocertain rawmaterials.
Thesingle export duty(DUS) applies tothefollowing products:
- coffee (roasted andunroasted) 200CFA francs pernetkg.;
- cocoa (beans) 200CFA francs pernetkg.;
- colanuts: Order No.84-813 of27June1984 (14percent);
- uranium oresandconcentrates (7percent);Republic ofCôte d'Ivoire WT/TPR/G/2
Page 23
- rawtimber (advalorem taxes varying from 1to44percentaccording tothevariety
ofwood);
- plywood (1percent).
Theadvalorem duties havenotvaried since devaluation. Specific duties oncoffee andcocoa
were introduced.
Côte d'Ivoire applies reference prices under Decree No.90-444 of29May 1990,
Decree No.94-377 of1July1994, Circular No.749of2August 1994, onrough timber andcertain
wood products forexport.
2.3 Export prohibitions
Exports areunrestricted, withtheexception ofcertain products subject toprior authorization
orprohibition.
2.4 Quotas andother measures toreduce exports
Côted'Ivoire isapartytotheCoffee Export Retention Plansetupin1993, andthePlanadopted
bytheInternational Cocoa Organization aimed atreducing over-production.
Exports ofbananas totheEuropean Union arerestricted to155,000 tonnes peryearunder
theterms oftheConvention ofLomé. Thisquota wasraised to162,500 tonnes foraproduction potential
of250,000 tonnes (Regulation No.3224/94 ofDecember 1994).
2.5 State trading
AcertainnumberofexportingenterpriseswithStateparticipationarerepresentedoninternational
markets. These are:
- theAgricultural Produce Price Stabilization andSupport Fund (CSSPPA): exporting
coffee andcocoa;
- Palmindustrie: exporter ofpalm oil;
- SODESUCRE: exporter ofsugar products;
- theCIDT: company producing andexporting rawcotton.
State companies arealsopresent intheexport ofservices, notably inthemaritime, railand
airtransport sector, telecommunications, oilandelectricity.
2.6 Export cartels
There aretwoexport cartels: theAgricultural Produce Price Stabilization andSupport Fund
(CSSPPA) which controls exports ofcoffee andcocoa andtheOrganization ofPineapple andBananaWT/TPR/G/2 Trade Policy Review Mechanism
Page 24
Producers andExporters, which coordinates distribution ofbananas andpineapples totheEuropean
Union.
2.7 Export subsidies
Anexportsubsidyintroducedin1984wasintendedtopayexportingcompaniesasubsidyassessed
at40percentoftheadded value ofimported inputs. Thissubsidy hassince beenabolished.
2.8 Tariff andfiscal advantages
Thetemporaryadmissionregimeallowstheimportofrawmaterialsasinputsforthemanufacture
ofproducts which aresubsequently exported. Theduration ofsuspension isamaximum of12months
(provisions under ordinary law). Theguarantee required is50percentofthesuspended duties.
Although thereisprovision foritinthesectoral adjustment programme (PASCO), thedrawback
regime isnotyetinplace inCôted'Ivoire.
2.9 Export promotion
Theprincipal agency responsible forexport promotion istheAbidjan International Trade Centre
(CCI-A) established byDecree No.84-933 of27July1984. TheCCI-A isapublic agency ofan
industrial andcommercial nature under theMinistry ofTrade andIndustry. Itsactivities consist of
promoting anddeveloping trade between theCôted'Ivoire anditsforeign partners.
Certain technical ministries andprivate bodies participate intheimplementation oftheexport
promotion policy. Notable amongst these aretheDirectorate forthePromotion ofForeign Trade
(Ministry ofTrade andCommerce) andtheCôted'Ivoire Chamber ofCommerce andIndustry (CCI-CI)
financed bytheprivate sector.
Obstacles faced byexport promotion include lackofinstitutions capable ofsupporting private
exportinginitiatives,particularlyanexportcreditinsurancecompany,andanationalexportinfrastructure,
etc.
3. Measures affecting production andtrade
3.1 Public enterprises andtheprivatization process
In1985, some 50percentofthecapital ofIvorian enterprises washeldbytheState, therest
being splitbetween theIvorian private sector (10percent) andforeign capital (40percent).
ReformsundertheSectoralAdjustmentandCompetitivenessProgrammehaveledtoasignificant
privatization programme.
Atthepresent time, some 15enterprises havebeenprivatized. These include anelectricity
distribution company, twopublishing houses, alivestock processing complex, atourist group, three
agro-industrial companies, etc.Republic ofCôte d'Ivoire WT/TPR/G/2
Page 25
Inall,some 60enterprises willbeprivatized, 15inthecurrent year, andtheothers under
restructuring plans. Companies which canbementioned are:
- Thelarge agro-industrial groups inthehevea, oilpalm, sugar andcotton sectors;
- therailway company;
- theoilrefinery;
- thetelecommunications company; and
- various companies inthepetroleum, hotel andservice fields.
3.2 Taxandinvestment legislation
ThenewInvestment Code (1995) grants significant fiscal andtariffadvantages toenterprises.
Itclearly shows theGovernment 'sdesire toencourage investment ingeneral regardless ofscale.
ThenewCode doesnotmake anydistinction concerning thesource ofcapital goods. Allcapital
goods, whether locally produced orimported, areeligible, under thesame conditions andwiththe
same effect, forthefollowing advantages under theCode:
- Exemptionfromimportduties(fiscalandcustoms)onallequipmentneededtoundertake
theinvestment, including thefirstbatch ofspare parts, foranamount atleastequal
totheupperthreshold(2billionCFAfrancs).Forinvestmentamountsincludedbetween
thelower threshold (500million CFA francs) andtheupper, asingle import dutyof
5percentisapplied, withtheexception ofconstruction materials, movable assets and
passenger vehicles, forwhich allimport duties mustbepaidregardless oftheamount
invested;
- exemption fromVAT onthecostofmaterial andequipment, utility vehicles andspare
parts foranamount ofinvestment atleastequal tothelower threshold, withthe
exception ofbuilding materials, movable assets andpassenger vehicles;
- exemption from taxonprofits;
- exemption from taxonlicences; and
- inthecaseofinvestments atleastequal totheupper threshold, exemption fromproperty
taxonbuildings constructed.
Anenterprise which wishes tobenefit from theadvantages under theapproval regime must,
among other things, comply withthefollowing obligations:
- Employ Ivorian management staff,supervisors andotherworkers andprovide fortheir
training, inaccordance withthecurrent regulation, particularly theoperation ofthe
fundforthedevelopment ofvocational training;WT/TPR/G/2 Trade Policy Review Mechanism
Page 26
- comply withnational orinternational quality standards applicable togoods andservices,
which arethesubject ofitsactivities;
- refrain from altering ecological conditions, particularly theenvironment; and
- respect theregulations concerning deposit ofagreements andcontracts concerning title
toindustrial property oracquisition oftechnology.
Theapproval regime applies toalleconomic activities withtheexception ofbuilding andpublic
works andfinancial services.
Investments which arenoteligible under theapproval ordeclaration regimes aresubject to
therelevant ordinary lawandparticularly theprovisions oftheGeneral Taxation Code andtheCustoms
Code. Investments infinancial services aresubject totheprovisions ofLawNo.90-589 of25July1990
containing thebanking regulations inCôted'Ivoire andtheirimplementing decrees.
Under theterms ofthecurrent regulations, theexercise offinancial orbanking activities is
subject toapproval byorder oftheMinister Responsible fortheEconomy, Finance andPlanning, after
afavourable opinion bytheBanking Commission oftheWest African Monetary Union (Articles 7
to9ofLawNo.90-589 of25July1990).
Likewise, financial institutions areclassified bydecree indistinct categories taking account
oftheiractivities.
Theymaynotexercise theactivities ofanother category without priorauthorization (Article 10).
Lastly, under Article 25oftheabove law,certain operations require prior authorization of
theMinistry oftheEconomy andFinance. These particularly concern:
- Transfer byabankorfinancial institution ofmore than20percentofitsassets related
toitsoperations inCôted'Ivoire;
- acquisitions ordisposals ofshares theeffect ofwhich would betoincrease theshare
ofasingle person above thelevelrequired toblock resolutions orthemajority ofvoting
rights orreduce suchshareholding beneath suchthresholds.
TheCentre forthePromotion ofInvestment inCôted'Ivoire (CEPICI), established byDecree
No.93-774 of29September 1993 andofficially opened on8March 1995, isprimarily intended to
facilitate, firstly, theadministrative procedures concerning theestablishment andoperation ofenterprises
and,secondly, completion oftheformalities concerning thegranting ofinvestment-linked benefits,
particularly those offered under thenewInvestment Code.Republic ofCôte d'Ivoire WT/TPR/G/2
Page 27
3.3 Price regulation andmarketing
Until 1990, prices ofallproducts could befixed bydecree (Law No.60-273 of
2September 1960, onprice regulation inCôted'Ivoire).
Since 1991, prices ofgoods andservices traded inCôted'Ivoire havebeenfreely determined
bymarket forces. Nevertheless, prices ofgoods andservices ofprime necessity orgeneral consumption
mayberegulated following anopinion oftheCommission onCompetition. Thus, only22groups
ofgoods andservices were subject toprice controls.
InJanuary 1994, following thedevaluation, theprices of34goods andservices (including
alistof22products) were frozen foraperiod ofthree months. Attheendofthatperiod, onlythe
goods andservices listed weresubject toprice controls. After theliberalization ofprices ofcement
andrice,onlytheprices of20goods andservices oftenconsidered asofprime necessity wereregulated:
- water;
- electricity andgas;
- urban transport;
- railtransport;
- telecommunications;
- oilproducts;
- charcoal;
- feesofdoctors, clinics andhospitals;
- school anduniversity fees;
- wheat, flour;
- vegetable oils;
- cotton;
- sugar;
- machetes;
- certain batteries; and
- pharmaceutical products.
Ingeneral, priceregulation inCôted'Ivoire concerns goods andservices forwhich thedomestic
andforeign trade isrestricted, andisthusaimed atpreventing price abuses resulting frommonopoly
situations.
3.4 Legislation oncompetition
Ivorian legislation oncompetition dates from December 1991 (Law No.91-999 of
27December 1991 oncompetition).
ACommission onCompetition wasestablished toimplement theabove-mentioned law. The
Commission gives itsopinion onallquestions concerning competition referred toitbytheGovernment
oronitsowninitiative.
Itmust beconsulted bytheGovernment onanydraft legislation orregulations instituting
measures torestrict competition.WT/TPR/G/2 Trade Policy Review Mechanism
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TheCommission mayalsogiveitsopinion onthesame matters attherequest of:
- Local authorities (collectivités territoriales), professional andunion bodies, accredited
consumer organizations andchambers ofcommerce concerning interests forwhich
theyareresponsible;
- anenterprise which isthevictim ofdiscrimination asregards investment advantages
granted bytheState.
TheCommission onCompetition gives anopinion, forthesettlement ofdisputes overunlawful
agreementsandabusesofdominantposition,aswellasconcerningcontrolofaconcentrationofeconomic
power, inthefollowing circumstances:
(1) Anyconcerted action, agreement, coalition, express ortacitunderstanding withtheobject or
which might havetheeffect ofpreventing orrestricting freecompetition isprohibited, notably
when suchaction might result in:
(a) Restrictingmarketaccessorthefreeexerciseofcompetitionbyenterprisesnotinvolved;
(b) hindering thesetting ofprices byfreemarket forces byartificially encouraging price
increases orreductions;
(c) restricting orcontrolling production, outlets, investment ortechnical orcommercial
progress;
(d) sharing ofmarkets orsources ofsupply.
(2) Inthesamecircumstances, anyabusive practice ortactic byanenterprise orgroup ofenterprises
occupying adominant situation inthedomestic market orpartofit,either asaresult ofa
monopoly situation orbyanexcessive concentration ofeconomic power, isprohibited.
Suchabuses mayconsist ofrefusal tosell,linked salesordiscriminatory saleconditions and
breaking ofestablished commercial relations, based solely ontherefusal ofatrading partner toaccept
unjustified trading conditions.
B. Newdevelopments during theperiod under consideration concerning theagreements discussed
above
Thepolicies implemented torestore competitiveness oftheIvorian economy asawhole have
resulted inpositive growth in1994 ofbetween 1.7and2percent.
Côte d'Ivoire 'seconomic potential, particularly inthefields ofagricultural development,
exploitation ofenergy andmining resources andindustrial development andservices, allow thecountry
totakegreater advantage oftheinternational trade agreements towhich itissignatory.
Thus, Côted'Ivoire 'smembership oftheWest African Economic andMonetary Union allows
ittocontemplate alarger market oftheorder of60million inhabitants intheseven member countries.Republic ofCôte d'Ivoire WT/TPR/G/2
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Theresults oftheUruguay Round should alsobebeneficial toCôted'Ivoire.
According toanevaluation ledbyGATT economists, Côted'Ivoire could earnUS$40 million a
yearfrom liberalizing itstrade.
Under theliberalization ofmarket access conditions, Côted'Ivoire should benefit:
- From thereduction of38to40percentofcustoms duties onindustrial products from
developed countries (United States, Japan, Canada, EEC);
- fromtheincrease inthenumber ofproducts entering developed countries freeofduty;
- fromthereduction intariffescalation ofsome 70percentonwood andrubber products.
Thanks tothebinding commitments itcontains, theagricultural agreement provides better
conditions ofaccess andgreater security andpredictability forfarmers.
TheAgreement should make itpossible tostrengthen production capacities through:
- Areduction insubsidized imports;
- special anddifferential treatment fordeveloping andleast-developed countries.
Newopportunities fordiversification ofexports oftropical products areopening upforthe
Côted'Ivoire, particularly forprocessed tropical products.
C. Current programmes fortrade liberalization, including those agreed inthecontext ofsectoral
adjustment and/or debtnegotiations
Themarked andprolonged deterioration intheterms oftrade during the1980s plunged
Côted'Ivoire intoalasting economic recession.
Theresult wasasignificant lossofcompetitiveness, ageneral decline ofeconomic activity,
worsening ofthebudget deficit andsoaring public debt.
Inorder tocorrect theseimbalances, theIvorian Government, withthesupport ofinternational
financial institutions, embarked uponanumber ofprogrammes which werestrengthened, from1990,
bytheeconomic stabilization andrecovery planbased onthefollowing principles:
- Return toandmaintenance ofstrict macroeconomic stability;
- direct withdrawal oftheState, through privatization ofcertain activities. TheState
nowonlyintervenes intrading activities when private economic operators cannot
undertake suchactivities inthegeneral interest;
- indirect withdrawal oftheState byderegulation aimed atmore systematic useof
adjustment bymarket forces.WT/TPR/G/2 Trade Policy Review Mechanism
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From 1991, anewprogramme ofstabilization andeconomic recovery waslaunched, supported
bythree sectoral adjustment programmes which made itpossible torestructure thefinancial sector
(PASFI), restore theoverall competitiveness oftheeconomy (PASCO) andinitiate aprogramme to
improve health andeducation services. Inaddition, aplantoreform thepublic sector andprivatize
some 60public enterprises wasalsoputintoeffect.
Theprogramme torehabilitate thefinancial sector made itpossible inparticular toreform and
restructurethefinancialinstitutions(banks,insurance,stockexchanges),restorebankliquidity,introduce
major improvements inmonetary policy andimprove financial intermediation mechanisms.
These measures taken asawhole resulted intheprimary balance offinancial operations of
theStatemoving fromadeficit of225billion CFAfrancs in1989toasurplus ofmore than60billion
CFAfrancs in1994. Parallel tothis,thehitherto persistent downward trend inGDP waseliminated,
withpositive growth in1994. Thenecessary foundations forgrowth havethusbeenestablished.
Inorder toattract investment, theGovernment hasimplemented aninnovative policy of
investment promotion andwithdrawal oftheStatefromtheproductive sector byintroducing apackage
ofmeasures aimed atimproving competitiveness intheeconomy, strengthening theeconomic fabric
andpromoting theprivate sector. Thisincludes inparticular:
(1) Significant fiscal relief measures suchas:
- reduction ofcustoms duties from anaverage rateofover100percenttoanaverage
rateofabout 40percent;
- improving theneutrality ofVAT byextending itsscope;
- reduction orabolition ofcertain charges;
- reduction ofrates onindustrial andcommercial profits, nowat35percentinstead
of50percent;
- reduction ofTPSonbankagios from 25to10percent;
- downward revision ofemployment taxforexpatriates nowfixed at11.5percent
compared with16percentandabolition ofthistaxforlocalstaff;
- reduction oftherateofincome taxonintangible assets applicable totherevenue from
loans;
- reduction incapital tax;
- exemption from duties andtaxes oncertain products;
- reform ofcertain taxes related tomanufacture oflocalproducts;
- extension oftheperiod ofcarry-forward oflosses from three tofiveyears.Republic ofCôte d'Ivoire WT/TPR/G/2
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(2) greater flexibility inemployment legislation inorder toincrease competitiveness oflocallabour;
(3) adoption ofalawtosimplify recovery ofcertain commercial debt;
(4) liberalization offoreign trade;
(5) ongoing revision ofbusiness lawinthecountries ofthefranc area;
(6) easing andsimplification oftheoverall administrative procedures concerning bothdomestic
andforeign trade;
(7) price liberalization;
(8) active promotion ofcompetition;
(9) improvement inthecosts ofcertain factors ofproduction suchaslabour, water, electricity,
gasandincrease intheenergy capacity ofthecountry, particularly implementation ofthe
CIPREL project;
(10) introduction ofthecomputerized registry intheAbidjan Court;
(11) improvement insecurity ofproperty andpersons.
Theadvantages andincentives forinvestment contained inthedraftinvestment codeofthe
MiningLawestablishingbetter,moretransparent,rapidandequitableconditionsofaccesstoalleconomic
operators, regardless oftheirsectoral activity, should beadded tothislistwhich isnotexhaustive.
D. Planned changes totrade policies andpractices
Inthemedium term, Côte d'Ivoire expects tocontinue liberalizing ofproducts subject to
restrictions. TheGovernment isanxious toconsolidate theprocess ofliberalization offoreign trade
ingeneral byeasing administrative procedures which aretooexpensive forIvorian economic operators.