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WT/ACC/TLS/24  
 
5 August  2022 
(22-5856) Page: 1/18 
Working Party on the Accession of Timor -Leste  Original: English  
 
ACCESSION OF TIMOR -LESTE  
QUESTIONS  AND REPLIES  
The following submission, dated 27 July 2022 , is being circulated at the request of the 
Delegation of the Democratic Republic of Timor -Leste.  
 
_______________  
 
  WT/ACC/TLS/24  
 
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  TABLE OF CONTENTS  
 
II. ECONOMIC POLICIES  ................................ ................................ ..............................  3 
- Investment regime  ................................ ................................ ................................ ..... 5 
- State ownership and privatization ................................ ................................ .................  5 
- Pricing policy  ................................ ................................ ................................ .............  8 
IV. POLICIES AFFECTING TRADE IN GOODS  ................................ ................................ . 8 
A. IMPORT REGULATIONS  ................................ ................................ ...........................  8 
- Import licensing procedures  ................................ ................................ ........................  8 
- Customs valuation  ................................ ................................ ................................ ...... 9 
- Application of internal taxes on imports ................................ ................................ ........ 10 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  ...............................  13 
- Technical barriers to trade, standards and certification  ................................ ................... 13 
- Sanitary and phytosanitary measures  ................................ ................................ .......... 13 
- Agricultural policies  ................................ ................................ ................................ ...14 
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIME  ................................ .............  15 
VI. POLICIES AFFECTING TRADE IN SERVICES  ................................ ...........................  16 
VIII.  TRADE AGREEMENTS  ................................ ................................ .........................  17 
 
 
  WT/ACC/TLS/24  
 
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  II. ECONOMIC POLICIES  
Question 1  
Paragraph 11:1 The "Doing Business " score by the World Bank has decreased between  
2017 and  2020.  Could Timor -Leste please inform what it is doing to improve its business 
climate?  
Answer:  
The Coordinating Minister for Economic Affairs (MCAE ) and SERVE, I.P.  are working to  improve the 
public  services provided by public institutions with the objective of facilitating  and boosting the 
development and growth of the national private sector , sustain ed in the long term. Specifically, since 
2019, MCAE  and SERVE, I.P. , supported by IFC-World Bank,  are working to  improve the process of 
registering businesses and issuing business licens es, starting with the review  and revision  of current 
legislation, namely Decree -Law No. 34/2017  of 27 September  2017 on "Licensing of Economic 
Activities " and Decree-Law No. 16/2017  of 17 May 2017 on " Business Registration ", to promote the 
harmonization of the related legislation aimed at simplifying the process of registering businesses  
and issuing business licen ses and to streamline the competences of the involve d line-ministries and 
regulatory authorities authorized to  supervis e and/or inspect  the implementation  of the economic 
activities. The draft legislation, which has been provided to the Working Party for review (see notice 
of legislation WT/ACC/TLS/23)  is currently undergoing  submission to the Council of Ministers for 
approval .  
MCAE is also working to  improv e the capacity of human resources , including the staff of SERVE, I.P. ; 
to support establish ment of  the branches of SERVE, I.P. at the  municipal level . These branches  will 
assist  local entrepreneurs in registering their businesses and enterprises, reduc ing the cost for 
registration process, including the  cost and time to travel to Díli . This  should  help to realize the 
principle of inclusion , specifically in the rural areas ; to formaliz e non-formal businesses, eliminating 
the bureaucracy acts with a risk of  bribes ; to ensur e the implementation of the respective legislation 
in the process  of business registration  and licensing; and to ensur e good communication between 
SERVE, I.P. and line ministries and regulatory authorities within the context of issuance of business 
licens es. 
Additionally, an  effort  is made  to implement  electronic registration of businesses , to help  SERVE, 
I.P. to serve the business community better  as One -Stop-Shop; to maximize transparency, bringing 
more ease to the interface system between SERVE, I.P. and line ministries and regulatory 
authorities ; bring more certainty ; ensure the security of the data through digitalization of data or 
archives – physical and electronic documents ; and to  minimiz e the time and related travel costs  – 
all to encourag e enhanced  participation of the private sector ; to promot e economic diversification 
and innovation , and to promot e the inclusion of women entrepreneurs. This should  help to create  
jobs across the country  either its direct and indirect job s, promot e national economic growth, 
promoting access to banking financ ing facilities which include loan facilit ies, reduc ing high 
dependency on public projects/bids,  promoting domestic production and export,  increasing domestic 
revenues including tax revenues collection , and thus help improving  Timor -Leste 's ranking in the 
"Doing Business " as reported by the World Bank, where Timor -Leste was last  ranked 181 . 
Question 2  
How and to what extent does Timor -Leste ensure their support on MSMEs' participation 
and fully integrate into global trade?  Are there any supportive measure s for MSMEs in 
order to facilitate and expedite economic recovery after the COVID -19 pandemic?  
 
1 Here and below, unless otherwise specified, paragraph  and annex  numbers are meant to refer to the 
Elements of the draft Report of the Working Party  (WT/ACC/SPEC/TLS/4 ). WT/ACC/TLS/24  
 
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  Answer:  
Timor -Leste is actively working to increase the share of MSMEs ' GDP contribution with their 
development, as outlined in the current General State Budget 2022 priorities. The six priorities of 
the Budget include : social capital development; housing and social inclusion; productive sectors 
development ; environment and c onnectivity; private sector development ; rural development ; and 
good governance.  
The Ministry of Tourism, Commerce and Industry (MTCI) has several initiatives to promote job access 
and entrepreneurship. MTCI is developing an integrated support system for MSMEs, which includes 
loan guarantee schemes, entrepreneurial incubation, moratorium credit, promotion of innovative 
business, internationalization of MSMEs, Research & Development support, Business Capacity 
Building and Electronic Platforms. Some of these  initiatives include:  
i. Launching of the Business Incubation Centre to provide training programmes to local MSMEs 
and build a business network ecosystem which can connect entrepreneurs to potential 
investors ; and,  
ii. Implementation of a Loan Guarantee Facility for youth entrepreneurs and social businesses, 
jointly implemented by the United Nations Development Program (UNDP) , the MTCI, and the 
Central Bank of Timor -Leste . The Facility backs soft loans with a 3 % rate and a grace period 
of up to 6 months.  
With the  support of the UNDP, the MTCI also organized a Youth Business Challenge (BCI) competition 
II, which includes a three -day bootcamp. The competition seeks to encourage youths to develop 
innovative business ideas with the opportunity to receive grant funding  and technical assistance 
from the Government.  
Alongside with other line ministries and agencies, one of key functions of TradeInvest Timor -Leste 
is to promote and facilitate exporting businesses (mostly , MSMEs) from various sectors to establish 
and grow t heir business in international market  and, hence, to maximize their participation in the 
global value chains. To leverage this effort, measures that have been taken to support MSMEs , 
includ ing: 
i. Facilitating the communication and dialogue between MSMEs , supporting the supply side and 
linking them with the market opportunities ; 
ii. Conducting market intelligence and supporting MSMEs in meeting export market 
requirements ; 
iii. Promoting MSMEs and their goods and services trade through participation in national and 
international events such as Trade Fairs and Expo, to expand their market linkages and 
connections ; 
iv. Supporting tourism industry in becoming an "export ready " business by engaging MSMEs 
such as inbound tour operators, wholesalers, online travel agents and r etailers to promote 
and sell their products and services to visitors overseas ; 
v. Reviewing existing and potential value -added products available from MSMEs and supporting 
develop ment of  a roadmap for export market ; 
vi. Developing digital exporter guide (online p ortal) as an effective information tool to be utilized 
by MSMEs for their export activities during and after C OVID -19 pandemic.  
Under the Timor -Leste Economic Recovery Plan of August 2020, there are several supportive 
measures for MSM Es in order to facilit ate and expedite economic recovery after the COVID -19 
pandemic. This Economic Recovery Plan foresees two different stages:  
i. The short -term response aims to mitigate the impacts of the crisis caused by COVID -19 and 
the measures are distribution of food basket, recovery subsidy, contributory exemption, and 
special support for informal workers. The food basket program aims to support local farmers, 
producers and traders. The recovery subsidy and contributory exemption aim to support 
employers and individua l entrepreneurs to resume economic activity, specifically support the 
tourism sector, severely affected by the crisis, and increase the immediate liquidity of the 
beneficiary entities. The special support for informal workers aims to support workers who 
are in a total lack of social protection and encourage formalization ; WT/ACC/TLS/24  
 
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  ii. For the second stage of response , taking into account the direct support from the previous 
stage, structural measures are proposed  for economic "recovery with transformation ", 
implemented since 2021, extending to 2022 and following years, having an impact on the 
medium -long term. At this stage, there are three main purposes of the proposed public 
policies: creation of new productive and decent jobs; the implementation and consolidation 
of social programs of public investment (education, health, housing, social protection); and 
the change of the productive structure and of the factors that contribute to economic growth. 
The target sector s in the long -term measures are agriculture (and small a gri-food industry), 
tourism, housing, education, health, social protection, institutional aspects, optical fibre 
installation, and , lastly , renewable, sustainable and alternative energ y.  
As part of the Economic Recovery Plan, the Government of Timor -Leste  has allocated around 
US$ 5 mln to support MSMEs under the MTCI. 
- Investment regime  
Question 3  
Paragraphs  26 to 39:  These  paragraphs  carefully  detail  the legislative  and institutional  
improvements  in Timor -Leste 's investment  regime.   Paragraph  32, in particular,  spells  out 
the role of TradeInvest  Timor -Leste,  as a one-stop-shop  agency  providing  various  
facilitation  services  for investors.  We very much  welcome  these  and other  developments.   
Given  the already  extensive  work  it has been  doing  on facilitating  investment  and the 
additional  potential  benefits  that could  accrue  to Timor -Leste,  we would  encourage  Timor -
Leste  to consi der, upon  accession,  joining  the Investment  Facilitation  for Development  
Agreement,  which,  hopefully,  by the time of Timor -Leste 's accession  will have  been  
concluded  and in force.    
Answer : 
We took note on the suggestion  and would  be ready  to join the WTO Investment  Facilitation  for 
Development  Agreement  when  it has been concluded  and entered  into force. We would  be grateful  
for technical  assistance  on this matter,  as necessary.  
Additionally,  please be informed  that Timor -Leste  is also consider ing joining  the World  Association  
of Investment  Promotion  Agencies  (WAIPA) . The accession  process  is currently  underway . 
- State ownership and privatization   
Question 4  
Paragraph s 40-43: We ask the Secretariat to include in the draft Working Party Report 
that Timor -Leste has confirmed that it regulates SOEs and private companies equally.   
Answer:  
We re-confirm that institutionally SOEs and private companies are treated equally , in accordance 
with the applicable legislation , in terms of operation as businesses and  as investors in a particular 
sector of development in Timor -Leste , and in the context of registration procedures.  
At the same time, t he Government acknowledges  policy findings laid out by the Asian Development 
Bank Institute (ADBI) in 2017 which explains that SOEs are different from private enterprises, in 
that they are often granted favourable treatment such as subsidies, debt waivers, favourable loans, 
and pro tection against bankruptcy. As a result, they are expected to provide pivotal public goods 
and services to their citizens, which is often not financially profitable . From this end, the existing 
legal framework for the SOE in Timor -Leste allow s for a transf ormation of an SOE depending on 
investment policy defined by the Government . The Private Investment Law continue s to allow for a 
fair and equitable treatment of all companies and guarantees to secure investment environment in 
Timor -Leste.  WT/ACC/TLS/24  
 
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  Additionally , in practice,  private  companies and  SOEs may have different requirement s in physical 
operation where SOEs are subject to more specific regulations contained in the Decree -Law 
No. 14/2003 on "Legal Regime for Public Companies " and specific internal regulations of the each 
competent ministries/authorities,  including  on energy and resources, oil and petroleum, aviation and 
airport management, national logistics center, electricity, water, radio and television services, etc.) . 
Hence, there should be an adequate opportunity to impose  additional requirements  to them in the 
context of participat ion in public projects/bids , based on  commercial considerations.  
We therefore propose to reflect  the suggestion from a Member  with a slight modific ation, to say that 
Timor -Leste has confirmed that SOEs and private companies  are treated  equally , in terms of 
their business operation  (although there may be differences in terms of regulation of different 
types of companies ). 
Question 5  
Paragraph 43:  We ask the Secretariat to change the language of the bracketed text to 
replace "adequate opportunity" with "equal opportunity".   
Answer:  
We would propose to maintain the wording "adequate opportunity " due to the reason th at special 
treatment may be given to SOEs under legislation applied in a specific sector (i .e., energy and 
resources sector , etc.). We understand that keeping "adequate opportunity" would also be in line 
with Article XVII of the GATT 1994 and the accessions acquis,  and we are ready to discuss this 
further with the Member . 
• Do the state -owned enterprises of Timor -Leste operate in accorda nce with 
commercial considerations?   
The SOEs (as of today, six  in total) were registered in accordance with the requirement s foreseen in 
Decree -Law No. 16/2017  of 17 May 2017 on  "Business Registration " and  the Company Act 
No. 10/2017  of 17 May  2017. They are operat ed under their company act s which had been  published 
in the National Gazette or Government/ Republican Newspaper . 
All these SOE s are operated in accordance with  "commercial consideration s" as normal commercial 
entities , under the Company Act and other applicable legislation . In their purchases or sales involving 
either imports or exports, they act in a manner consistent with the general  principles of 
non-discriminatory treatment , like normal commercial entities  or private companies.  
• What are the local content requirements for purchases by Timor Gap EP?  
The requirement is applicable no n-discriminator ily to oil and gas companies holding a right t o explore  
in the petroleum sector , including Timor Gap E .P. As defined in the legal framework for pet roleum 
sector, all contactor s (including Timor Gap E .P.) shall procure Timor -Leste goods  and services, 
emplo y Timorese Nationals, train and transfer of knowledge and technology, and create a sustainable 
community engagement through Corporate Social Respons ibility programs, with prior approval from 
ANPM (National Petroleum and Mineral Authority) , which shall be in accordance with the Government 
Development priorities . 
• What is the amount of public transfers provided by Timor -Leste to its 
SOEs?   How does Timor -Leste intend to bring these SOEs to profitability?  
Timor Gap  EP: Timor Gap was established by Decree -Law No. Article 6 of the Decree -Law identifies 
that the initial capital of the company (paid from the state budget) is US $ 2,500,000 . The yearly 
amount public transfers varies depending on the work program and budget allocated to a specific 
year. Further , Timor Gap EP also has other source of project financing through public and private 
loans. The operational portfolio of Timor Gap EP covers upstre am, downstream and petroleum 
support services sector, which ma kes this investment complex and attractive . From upstream sector , 
all projects are now at the exploration stage , not producing any profit  yet. H owever, from other 
sector (downstream and services ) Timor Gap EP now ha s the opportunities to create profits. The 
general policy of the Government is to invest in the exploration and exploitation of the petroleum WT/ACC/TLS/24  
 
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  resources , at the same time creating a strong service through downstream and other support 
services which will lead to costs effectiveness and increas ed profitability.  
Mining Company of  Timor -Leste, S.A : the amount public transfers varies depending on the work 
program and budget allocated to a specific year . Further , this company also have other s ource of 
project financing through public and private loans. The operational portfolio of this company covers 
upstream, downstream, and mineral support services. This is a company established in June 2022 ; 
therefore, its investment portfolio will be expanded as the investment grows. The general policy of 
the Government is to invest in the exploration and exploitation of the mineral as alternative revenue 
resource to the State, at the same time creating a strong service thr ough other mineral support 
services which will lead to costs effectiveness and increas ed profitability of the company.  Article 6 
of Decree -Law No. 43/2022  establishing the  Mining Company of Timor -Leste  set its social capital in 
the amount o US$ 600,000 , while Article 9 defines other means of financing can be made up to 
US$ 1mln. Any transfers beyond this amount are subject to the Council of Ministers decision.  
ANATL -EP: The Airport Administration and Air Navigation of Timor -Leste (ANATL -EP) is a n SOE 
create d by the Government Decree No. 8/2005 of 16 November  2005. Article 7 of t he Government 
Decree provides that its  statutory capital is to be defined through joint Ministerial Order  by the 
Minister of Planning and Finance and the  Minister of Transport and Com munications. The legal 
competence to be contributed by respective Minister up to a maximum of US$  20 million and any 
other amount beyond this defined amount is to be approved by the Council of Ministers and or the 
Parliament as defined by 2022 Government annual state budget laws.   
EDTL-EP: The electricity enterprise has been  created by Decree -Law No. 29/2020. This Decree -Law 
established the composition, duties and responsibilities of this SOE  as entitled to propose, monitor 
and ensure the execut ion of the national energy sector policy, ensuring sustainable and integrated 
management of the production, transmission, distribution and sale of electricity, namely through the 
establishment and provision of public electrical energy supply services. The EDTL, E.P. carries its 
business activities through implementing social and economic policy of the Government , including  
(i) support  to the Government in the establishment  of the energy resources policy; (ii) propos al of 
a National Electrification Plan  to the Government; (iii) propos al on the creation and maintenance of  
registration of electricity distribution, easement zones and the National Electricity System; 
(iv) promot ion of  the efficient use of electric energy; (v) ensuring the public service supply of  
electricity for consumption, through the operation and management of the National Electricity 
System throughout the country; (vi) promot ing a continuous quality improvement of electricity 
supply, through plans and programmes; (vi) implement ation of  an int egrated system between the 
various electricity supply infrastructures; etc.  Article 10 of t he Decree -Law established that the  
statutory capital for Electricity enterprise is US$ 94,424,461.  
Bee TL -EP: the w ater enterprise in Timor -Leste or Bee -TL EP is created by Decree -Law No. 41/2020 
of 25 September  2020. The overall mission  of this SOE  is to increase a universal and equitable access 
to safe drinking water and sanitation services to all populations in all territories; to maintain regular, 
continuous and efficient water supply and sanitation services; to promote affordable water and 
sanitation services that contribute to economic development, social, environmental and 
technological advancement; to improve public health; and to promote industrial, commercial and 
research development.  Article 10  of the Decree -Law sets its  statutory capital as US$ 12,880,000.  
RTTL-EP: In 2008, the Government issued  Decree -Law No. 42/2008 of 26 November  2008 to 
transform Radio and Television broadcasting services into a this SOE. Article 6 of the Decree -Law 
established its  statutory capital of US$  8,335,031  million.  
Apart from  the above amounts invested by the Government to these SOEs, the budget law does not 
specify public transfer s to particular SOE s. However , under certain circumstances, designated 
Minister can submit special request for approval by the Cou ncil of Ministers and or the Parliament if 
an investment is required beyond the scope of the budget law , which has to be approved by the 
National Parliament.  This, for the year of 2022, the total allocated budget transfers to Timor Gap 
amounted to US$ 60 m illion.  WT/ACC/TLS/24  
 
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  - Pricing policy  
Question 6  
Paragraph 53: Table 4 is titled "Estimated value of agricultural production in Timor -Leste, 
2008 – 2012" and is labelled  with units "US$, thousand." One of the lines in the table 
provides Timor -Leste's production of cereals.  
• Are the yearly figures for pro duction in metric tons or thousand U.S. dollars?  
Answer:  
We confirm that the yearly figures for production are in thousand s of US dollars.  
IV. POLICIES AFFECTING TRADE IN GOODS  
Question 7  
Paragraph 93 : The paragraph says: "The customs reform process had started with the 
approval of the 2017 Customs Code (Decree -Law No. 14/2017 of 5 April 2017). The Code 
reflected the political will of the Government of Timor -Leste in support of trade facilitation 
and was  based on the Kyoto Convention of the World Customs Organization (WCO). 
The Government therefore expected the Code to be in compliance with the WTO Trade 
Facilitation Agreement (TFA)…" .  Could Timor -Leste please give an indication on timing 
of the customs reform?  
Answer:  
The customs reform will continue for another three years . Thereafter, it will be a continuous process  
of aligning and  harmonizing the national legislation with ATIGA  and other bilateral agreements and 
procedures, complet ing the improvement of appropriate infrastructure, implemen ting new 
organization structure, and continuing  the implementation the National Single Window (NSW).  We 
also plan to extend the NSW interface with the ASEAN Single Window or other bilateral interfaces 
such as  of membe rs of the CPLP.  
A. IMPORT REGULATIONS  
- Import licensing procedures  
Question 8  
Paragraph 118: The p aragraph states that live animals; live plants; animal or vegetal 
products as specified by law; and any other good, or merchandise, animal or vegetal 
organism as specified by law can be subject to import permits per Article 14 of Decree -Law 
No. 21/2003. Please provide any relevant laws or regulations that list specific agricultural 
products subject to import permits.  
Answe r: 
Timor -Leste 's sanitary and phytosanitary measures are applied according to Decree -Law 
No. 21/2003 of 31 December 2003 on "Quarantine and Sanitary Control on Goods Imported and 
Exported", and implementing Government Decree No. 1/2006 of 20 September 2006 , on the General 
Quarantine Reg ulations.  
According to Article 14 of Decree -Law No. 21/2003, the following items are subject to the import 
permit s to be issued by the Directorate of Quarantine Services, under the Ministry of Agriculture and 
Fisheries: (a) live animals; (b) live plants; (c) animal or vegetal products as specified by aw; (d)  any 
other good, or merchandise, animal or vegetal organism as specified by law . 
While Timor -Leste is yet to have specific laws or regulations that list specific agric ultural products, 
Timor -Leste issues its import permits based on the lists approved by the WOAH/OIE and IPPC . WT/ACC/TLS/24  
 
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  Question 9  
Questions and Replies (WT/ACC/TLS/ 20), follow up question to Question 2 0: please 
confirm that importer of medicines needs to apply for an import license which takes place 
within a maximum period of 90  days to grant such license and is valid for 3  years 
(Decree -Law No. 12/2004, Article 3:  Licensing). Then importer needs to apply  for an 
Authorization to commercialize medicines which decision shall be granted within 
a maximum period of 30  days and valid for 3  years (Decree -Law No. 12/2004, Article 18  
and Article 21).  
• After granted Import License and Authorization to commercialize m edicines 
for 3  years, please clarify whether each shipment of pharmaceutical products 
needs to be approved by the Ministry of Health.  
Answer:   
Each shipment of pharmaceutical product is subject to prior authorization from the National 
Directorate for Pharmacy with approval and license by Cabinet  of Licensing and Registration of the 
Ministry of Health . This  mean s that,  regardless of the validity o f the licenses , all importers are 
required to submit the list of pharmaceutical products prior to the importation to Timor -Leste.  
Question 10  
Questions and Replies (WT/ACC/TLS/ 20), follow up question to Question 23 : Timor -Leste 
responded to this question that "All plants and plant products from all importing countries 
are required to obtain an import permit." We view that this requirement indicate that all 
plants and plant products are "Regulated Articles" and theref ore, may not be in 
accordance with the International Plant Protection Convention (IPPC). This  requirement 
may also cause trade barriers.  
• In this light, we would like to recommend Timor -Leste to apply the principle 
of Pest Risk Analysis (PRA) in determining  which plants and plant products as 
regulated goods.  
Answer:  
We took note of Member 's request  and would like to confirm that Timor -Leste requires an import 
permit for importation of all plants and plant products according to the requirements of the 
International Standards for Phytosanitary Measures (specifically, ISPMs 6, 7, 16  and others) . 
Timor -Leste will apply the principle of Pest  Risk Analysis (PRA) in determining which plants and plant 
products as regulated goods  once it becomes a member of  the IPPC . 
- Customs valuation  
Question 11  
Questions and Replies (WT/ACC/TLS/ 20), follow up question to Question 29: The follow 
up answer provided is still not responsive to this question. Article 1.2(a) of the WTO 
Customs Valuation Agreement (CVA) provides that in determining whether the 
transaction value is acceptable, the fact that the buyer and the seller are related is not in 
itself grounds for regarding the transaction value as unacceptable.  In such case, the 
circumstances surrounding the sale must be examined and the transaction value accepted 
if the relationship did not influence the price.   
• Please indicate which prov ision implements Article 1.2(a).   
• Further, Article 1.2(c) of the CVA provides that test values are to be used at 
the initiative of the importer and only for comparison purposes.  Substitute 
values may not be established under the provisions of paragraph 2(b ). Please 
indicate which provision implements Article 1.2(c).  WT/ACC/TLS/24  
 
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  Answer:  
Timor -Leste recognizes the existing gaps in the Customs Code which may not reflect the Articles of 
the Customs Valuation Agreement (CVA) in full. The Government  is currently working to make the 
necessary legislative/regulatory changes, expeditiously, to reflect all CVA provisions  (please also see 
the elaborated response to Question 12) . 
Question 12  
Questions and Replies (WT/ACC/TLS/ 20), follow up  question to Question 30: Please 
indicate when the draft Decree -Law adopting the Interpretative Notes will be proposed.  
Answer:  
The Customs Code  is aimed to  contain all elements of CVA, even though the Interpretative Notes 
may not be fully and explicitly r eflected in its text. 
Therefore, and notwithstanding Timor -Leste 's willingness to amend the Customs Code in that regard, 
if need be, the Ministry of Finance is currently assessing to which extent the Interpretative Notes 
could be transposed to the internal  legal system by a Government or Ministerial Regulation, for which 
there are specific legal grounds ( Article 386 of the Custom s Code).  
Such an alternative would expedite and streamline the transposition process. In any case, 
Timor -Leste reasserts its commitment regarding the adoption of the Interpretative Notes in the 
internal legal system before the accession.  For that purpose, a draft of either the internal regulations 
or legislation adopting the Interpretative Notes in the internal legal system will  be put forward before  
the end of September and approved before  the end of 2022.  
- Application of internal taxes on imports  
Question 13  
Questions  and Replies  (WT/ACC/TLS/20),  follow  up question  to Question  31: 
The response  indicates  that "the 2% withholding  tax is imposed  on resident  entities  and 
non-resident  entities  with permanent  establishment  carrying  out construction  or building  
activities,  as opposed  to non-resident/foreign  entities  without  P.E. which  are subject  to 
the 10%  withholding  tax."  Our question  was about  why foreign  entities  with P.E. are 
being  subject  to a 10%  withholding  tax.  Would  the 10%  levy on foreign  entities  with P.E. 
be a violation  of Timor -Leste 's own domestic  law?    
Answer:  
We confirm  that both resident  entities  and non-resident  entities  with P.E. carrying  out construction  
or building  activities  are subject  to 2% withholding  tax alike.  Therefore,  under  domestic  tax law, 
there  are no legal grounds  to apply  a different  or another  tax rate to those  entities.  
Indeed,  the 10% withholding  tax rate is only applicable  to non-resident  entities  without  P. E. 
Question 14  
Questions  and Replies  (WT/ACC/TLS/20),  follow  up question  to Question  31: 
Timor -Leste 's response  further  notes  that a foreign  entity  "must  be subject  to rigorous  
testing  of the P.E. legal  criteria  in order  to be determined  and/or  qualified  as P.E." Might  
thislegal  criteria  be so rigorous  that it could  have  the effect  of de facto  discriminat ion? 
Under  Paragraph  146, it is stated  that the Government  of Timor -Leste  was considering  a 
relatively  simple  VAT system  comprising,  among  others,  a single  rate for VAT.  Will the 
new VAT regime  address  the 10%  withholding  tax for goods  acquired  by resident  entities,  
including  permanent  establishments  of foreign  construction  companies,  so as to bring  the 
existing  tax in compliance  with GATT  Article III? WT/ACC/TLS/24  
 
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  Answer:  
In order  for non-resident  entities  to be fiscally  treated  as having  a permanent  establishment  (P.E.),  
Timor -Leste must check  if they actually  comply  with the corresponding  legal criteria  on the existence  
of a P.E. (i.e., if they have a fixed place of business  through  which  their activities  are wholly  or partly  
carried  on, as per article  1(u) of Tax and Duties  Act (TDA),  e.g., a branch,  a representative  office,  
an office,  a factory,  a workshop,  etc.].  This is to prevent  foreign  entities  from administratively  and 
unduly  qualifying  themselves  as having  a P. E. (which  benefit  from a lower  tax rate),  without  actually  
meeting the corresponding  criteria.  However,  those  legal criteria  are objective  and aligned  with 
international  best practices.  Therefore,  checking  if a P. E. actually  meets  the requirements  set forth 
in the legislation  is unable  to produce  the effect  of a de facto discrimination.  
Regarding  the second  part of the question,  on the 10% withholding  tax for goods  acquired  abroad,  
it is important  to clarify  the following  aspects:  
• The withholding  tax is often considered  as an autonomous  tax type in Timor -Leste.  However,  
technically  and rigorously  speaking,  it is actually  a method  to ensure  the advanced  payment  of the 
income  tax. That is the reason  why the withholding  tax is contained  in a subsection  of TDA's chapter  
on income  tax (see Articles  53 and seq.);  
• The withholding  tax is thus a tax burden  of the payee  (as beneficiary  of the income)  and not 
a tax burden  of the payer.  I. e., the payee  is the taxable  person;  
• The payer  acts solely  as a tax collector,  withholding  the tax owed  by the payee,  i. e., deducing  
to its payment  the amount  corresponding  to a percentage  of that payment,  and remitting  that 
amount  to the State;  
• Article  57 of the TDA provides  for the withholding  of 10% income  tax on every  payment  of 
Timor -Leste  source  income  made  to a non-resident  entity  without  a P. E; 
• That is the same  income  tax rate applicable  to resident  entities  and non-resident  entities  with 
a P. E. (cf. annex  VI of TDA),  with the difference  that these  entities  are not subject to the withholding  
set forth in article  57, because  they directly  declare  their tax return  and pay the corresponding  tax 
annually  (see article  62 and 63 of TDA).  
In light of these  aspects,  and in Timor -Leste 's perspective,  the differences  between  the tax treatment  
of non-residents  without  a P.E. vis-a-vis residents  or non-residents  with P. E. are mostly  operational  
and arise from the different  nature  of the entities  concerned.  Therefore,  those  differences  are not 
material  nor discriminatory,  so as to afford  protection  to domestic  production.  In fact, non-resident  
entities  without  a P.E. simply  cannot  be compelled  or expected  to declare  an annual  tax return  or 
follow  the tax obligations  set forth in Timor -Leste 's legislation,  as if they were resident  or as if they 
had a permanent  establishment  in the country.  The withholding  of the income  tax of non-resident  
entities  at the source  of the payment  may thus not qualify  as a violation  of Article  III of the GATT  
1994.  We would  be ready  to further  clarify this aspect  in the draft Working  Party Report,  if requested.   
We take the opportunity  to point out that Article  57 of TDA only provides  for the withholding  of tax 
regarding  payments  whose  income  source  is legally  considered  to be from Timor -Leste.  This Article  
must thus be read in conjunction  with Article  49 of TDA, which  further  specifies  which  payments  are 
considered  as income  sourced  in Timor -Leste.  According  to this latter  Article,  payments  received  by 
a non-residen t entity  without  P.E. (i. e., abroad)  from the sale of goods  to resident  entities  or 
non-resident  entities  with a P.E. in Timor -Leste,  are not explicitly  qualified  as sourced  in the country.  
In any case, if indeed  the members  of the working  party identify  a need to bring specific  aspects  of 
the existing  income  tax or withholding  tax in more clear compliance  with Article  III of the GATT  
1994,  Timor -Leste  is willing  to directly  address  the issue in the revision  of TDA which  is under  
preparation  (see response  to Question  15). WT/ACC/TLS/24  
 
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  Question 15  
Paragraph  147: The paragraph  notes  that the draft  VAT law would  be submitted  to this 
body  prior  to Timor -Leste ' accession  to the WTO.   We would  appreciate  further  light on 
when  it expects  to submit  the draft  VAT law.  Paragraph  148 refers  to 2025  as a timeline  
for full conformity  with WTO  obligations  including  Article  III of GATT.   At the same  time,  
Timor -Leste  today announced  its goal of concluding  substantive  accessions  negotiations  
by the end of this year.  Could  it be assumed  that full conformity  would  take place  before  
accession  or would  it occur  after  accession?   
Answer : 
VAT is a complex tax, which comprises settlement and deduction operations carried out by the 
economic agents in every step of the consumption chain. This requires adequate administrative 
scrutiny and cross -check mechanisms that are not yet in place in a context of a significantly inf ormal 
economy.  Therefore, in order to enable the operationalization of  the VAT, legal infrastructure needs  
to be set forth beforehand, namely the introduction of a universal and mandatory issuance of a tax 
identification number, the introduction of account ing standards and account certification 
requirements for certain businesses, as well as the reinforcement of the inspection powers of the 
Tax Authority, among others. These aspects are all being addressed in the context of the ongoing 
fiscal reform, and mu st precede the specific configuration of the VAT. 
Having these aspects into account, the Government of Timor -Leste is currently giving technical and 
political priority to the revision  of the Tax and Duties Act (TDA) and to the amendment of the Tax 
Procedur e Code (TPC), which are the right pieces of legislation to provide for those preceding 
conditions.  
Timor -Leste  earlier  proposed  an Action Plan regarding  the drafting  of the VAT, TDA and TPC laws 
(see response  to Question  7 in document  WT/ACC/TLS/20) . That action  plan was reflected  in the 
Elements  of a draft Report  of the Working  Party (document  WT/ACC/SPEC/TLS/4) , as Annex 15. 
In the same  spirit of transparency,  in order  to update  the Working  Party, we propose  an adjustment  
of this plan, for reflection  in Annex  15. 
This adjustment  considers  the current  technical  and political  prioritization  of TDA and TPC, as well 
as the end of the ongoing  Legislature  (National  Parliament) , which  is to be re-elected  in May 2023,  
and will entail  bringing  forward  the drafting  and approval  of the TPC. Simultaneously  further  and 
later consideration  will be given  to the preliminary  version  of the draft VAT Law (which  has not yet 
been internally  validated,  neither  at a technical  nor political  level),  ensuring  its compliance  with 
GATT  Article  III regarding  the national  treatment  principle.  Once the draft Law is ready,  its copy will 
be provided  to the WTO Secretariat,  in due course.  
Therefore,  a proposed  revised  Action  Plan on drafting  the Law on Value  Added  Tax, the Taxes  and 
Duties  Act (revision),  and the Tax Proceedings  Code is presented  in the document  enclosed  herein,  
according  to which  the proposed  timelines  for the development  and implementation  of those  laws 
will be as follows:   
i. Revised Taxes and Duties Act :  
Action to be taken  Target of completion  Status  
• Revisit the revised draft law by the Ministry of Finance  1st half of 2022  In progress  
• Seek opinions, comments and feedback from any third party 
on the revised law as well as public consultation and 
discussion with relevant private and public stakeholders  1st half of 2022  In progress  
• Discussion and approval by the Council of Ministers  2nd half of 2022  Pending  
• Discussion and approval by the National Parliament  1st half of 2023  Pending  
• Promulgation by the President  2nd half of 2023  Pending  
• Public awareness on the changes and introd uction of new 
articles  2nd half of 2023  Pending  
• Effective Implementation  1st half of 2024  Pending  WT/ACC/TLS/24  
 
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  ii. Tax Proceedings Code:  
Actions to be taken  Target of completion  Status  
• Revisit the draft TPC  by the internal Ministry of Finance 
team  2nd half of 2022  Pending  
• Seek opinions, comments and feedback from any third 
party on the revised law as well as public Consultation and 
discussion with relevant private and public stakeholders  2nd half of 2022  Pending  
• Discussion and approval by the Council of Ministers  2nd half of 2022  Pending  
• Discussion and approval by the National Parliament  1st half of 2023  Pending  
• Promulgation by the President  2nd half of 2023  Pending  
• Public awareness  2nd half of 2023  Pending  
• Effective Implementation  1st half of 2024  Pending  
iii. VAT Law:  
Action to be taken  Target of completion  Status  
• Development of the draft Policy Paper for VAT Law  December 2015  Done 
• Seek opinions, comments and feedback from any third party 
on the revised law as well as public consultation and 
discussion with relevant private and public stakeholders  2nd half of 2023  In progress  
• Discussion and approval by the Council of Ministers  2nd half of 2023  Pending  
• Discussion and approval by the National Parliament  1st half of 2024  Pending  
• Promulgation by the President  2nd half of 2024  Pending  
• Public awareness  2nd half of 2024  Pending  
• Effective Implementation  1st half of 2025  Pending  
 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  
- Technical barriers to trade, standards and certification  
Question 16  
Annex 16 - Action Plan on the Implementation of the WTO Agreements on Technical 
Barriers to Trade : In Annex 16, Timor -Leste included Capacity Building activities as part 
of its Action Plan on the Implementation of the WTO Agreement on Technical Barriers to 
Trade. We encourage Timor -Leste to add an additional action to consider outreach to the 
International Laboratory Acc reditation Cooperation (ILAC), of which Asia Pacific 
Accreditation Cooperation Incorporated (APAC) is a Recognized Regional Cooperation 
Body, and the International Accreditation Forum (IAF) about future membership as 
Timor -Leste develops its capabilities i n standardization and accreditation.   
Answer:  
Timor -Leste took note of Member 's request and confirms its intention to outreach to the International 
Laboratory Accreditation Cooperation (ILAC ), Asia Pacific Accreditation Cooperation (APAC) and the 
International Accreditation Forum (IAF) about future membership,  as Timor -Leste develops its 
capabilities in standardization and accreditation . The respective adjustments can be  reflected in 
Annex 16 o f the draft Working Party Report ( document WT/ACC/SPEC/TLS/4/Rev.1).  
- Sanitary and phytosanitary measures  
Question 17  
Paragraph 174: Timor -Leste states that, "…for public health reasons, the importation of 
the following was prohibited: (i ) any proteins for animal feeding containing meat powder, 
bone powder, blood powder, or fat from mammal tissues; (ii)  poultry powder for ruminant 
feeding."  
• We are  concerned that Timor -Leste has banned all animal feed derived from 
animal parts.  Accordingly,  we request Timor -Leste to share its scientific basis 
which justifies the ban of the importation of these products for public health 
reasons.  WT/ACC/TLS/24  
 
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  Answer:  
Timor -Leste is yet to develop an appropriate facility to justify this reason on a scientific basis, 
however, we would like to emphasize that this measure was developed in accordance with Codex 
Alimentarius, FAO and WHO food safety standards , including inte rnational requirements on the bans 
on Meat Born Meal (MBM) in animal feeding, to prevent spread of BSE .  
Question 18  
SPS Checklist (WT/ACC/TLS/13 /Rev.1 ): In part  7, Timor -Leste states that, regarding 
equivalence, it will be committed to re cognize different measures that achieve the same 
level of protection. Timor -Leste continues to state that Article 25(a) of its draft 
Decree -Law on "Animal Health and Quarantine" authorizes Timor -Leste's "Veterinary 
Authority to negotiate bilateral and multilateral agreements, for the evaluation, and 
where feasible, the acceptance of alternative animal health measures proposed by an 
exporting country's Veterinary Authority as being equivalent to the animal health 
measures required by the Timor -Leste Vete rinary Authority."  
• Please clarify whether its statement regarding Article 25(a) of its draft 
Decree -Law on "Animal Health and Quarantine" means that Timor -Leste 
expects to only recognize the equivalence of different measures achieving the 
same levels of pr otection if WTO Members are willing to negotiate bilateral and 
multilateral agreements with Timor -Leste.  For example, would Timor -Leste 
expect us to sign a Mutual Recognition Agreement (MRA) regarding 
equivalence for a particular measure prior to recognizi ng it as achieving the 
same level of protection as its Timor -Leste analog? Or would other avenues 
exist for Timor -Leste to recognize equivalence without the negotiation of a 
bilateral/  multilateral agreement?  
Answer : 
We confirm  that Timor -Leste can  recognize  Members' SPS measures as equivalent (i.e., achieving 
the importing Member's appropriate level of SPS protection) if WTO Members are willing to negotiate 
bilateral and multilateral agreements with Timor -Leste, in accordance w ith the WOAH/OIE and IPPC 
requirements that require Import Risk Analysis to the exporter countries.  
As Timor -Leste seeks a transition period to build capacity and achieve full compliance with the SPS 
Agreement by 2027, effort will be made to achieve full consistency with Article 4 of the SPS 
Agreement and the relevant decisions of the WTO SPS Committee on Equivalence.   
- Agricultural policies  
Question 19 
Agriculture Support Tables (WT/ACC/SPEC/TLS/1/Rev.1): Supporting Table DS:1 notes 
Timor -Leste's Contingency Fund for Purchase of Rice. In  what legislation can we identify 
Timor -Leste's public stockholding for food security program. Which Ministerial Orders 
govern Timor -Leste's public stockholding for food security program?  
Answer:  
Timor -Leste kindly confirms that the related legislation is contained in Decree -Law No. 26/2014 of 
10 September  2014 on "Establishment and Approval of the Statu te of the National Logistical Center ", 
which sets forth that decisions on public stockholding fo r food security program made by a collective 
decision by key Ministries . In accordance with the Decree -Law No. 26/2014 of 10 September 2014, 
the Coordinating Minister for Economic Affairs (MCAE), the Minister overseeing the National Logistic 
Center agency (NLC), the Ministry of Agriculture and Fisheries (MAF), the Ministry of Tourism, 
Commerce and Industry (MTCI), and the Ministry of Finance issued a joint Order, based on the 
diagnostic study undertaken by the technical working group composed of these Minis tries, with 
recommendations on the specific conditions and prices in accordance with the market trend and the 
yield of rice production in the country. The Government's market interventions are made through 
the National Logistic Center (NLC).  WT/ACC/TLS/24  
 
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  In addition, the new Procurement Law (Decree -Law No. 22/2022 ) elaborates on the procurement 
procedures , including matters related to public stockholding purposes. This Decree -Law was 
promulgated by the President in May of 2022 and will enter into force in January 2023. This 
Decree -Law will also regulate matters related to public stockholding purposes.  Both Decree -Laws 
have been provided to  the Working Party.  
Question 20 
Where in DS:1 or in Annex "Foreign Policy: Principles and Procedures Governing 
non-lending assistance to Timor -Leste" is Timor -Leste's School Feeding Program notified? 
Can we have information on the type, purchase, and distribution of food? What role, if 
any, does the National Logistic s Center have in Timor -Leste 's School Feeding Program?   
Answer:  
Timor -Leste 's School Feeding Program will be  a national program to reduce stunting, malnutrition, 
promote students ' participation in school, and boosting domestic production . In accordance with the  
draft Decree -Law on School Feeding Programme that is currently being developed , to be considered 
by the Council of Ministers  in the first half of 2023 . 
Based on the draft De cree-Law, the information on the type of list will be prepared under a collective 
decision through a Ministerial Diploma issued Ministry of Education, Ministry of Agriculture and 
Ministry of Health ; whereas the decision on the purchase and the distribution  of food will be under 
the Municipalities authority, while the monitoring and evaluation will be under the responsibility of 
the Ministry of State Administration, Ministry of Education and Ministry of Health.  
Thus, Timor -Leste also confirms that the Nation al Logistic s Centre  will not be  involved in the School 
Feeding Program.   
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIME  
Question 21  
Paragraph 245: The paragraph says: "Responding to Member's question, he added that, 
as of March  2022, the Government of Timor -Leste was developing the Industrial Property 
Code which would include provisions on trademarks, patents, utility models, industria l 
designs, and trade secrets. This draft Code would be submitted to the Working Party for 
Members' comments and review once the final version was available in the first half of 
2022".  Could Timor -Leste please provide a state of play on the work of the Ind ustrial 
Property Code?  
Answer:  
As for the progress of the Industrial Property (IP) Code, Timor -Leste has sent the draft IP code, 
which was prepared by USAID, to WIPO for their comprehensive review and feedback. There have 
been several discussions and consu ltations between WIPO, USAID and Timor -Leste on the content 
of the draft C ode which is to be aligned and consistent with the current development context and 
the TRIPS Agreement. Furthermore, WIPO is willing to provide additional Technical Assistance, 
including by a regional IP expert that can provide strategic guidance and policy on Intellectual 
Property.  
The chronological order of the IP Code's development progress is below : 
• March – April 2022 : USAID further revamped and finalized the draft C ode by insert ing an 
additional section on Geographical Indication s; 
• 1st week of May 2022 : The Government of Timor -Leste sent the draft IP Code to WIPO for 
their comprehensive review and feedback ; 
• 2nd week of May 2022 : First kicked -off meeting between the WIPO team and the Government 
of Timor -Leste on the way forward to review the draft IP Code; 
• 3rd Week of May 2022 : The Government of Timor -Leste d iscussed and reviewed initial 
comments on Patents from WIPO by USAID, together with the WIPO team ; WT/ACC/TLS/24  
 
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  • 1st week of June 2022 | Se cond discussion and meeting with WIPO to review WIPO 's 
comments on patents and related sections ; 
• 2nd week of June 2022 | Third discussion and meeting with WIPO to review WIPO 's comments 
on Trademarks, Geographical indication s, and Industrial Design s; 
• 3rd Week of June 2022 | Fourth discussion and meeting with WIPO to review WIPO 's 
comments on enforcement and related provisions ; 
• 4th Week of June 2022 | Timor -Leste 's inter -ministerial meeting to discuss overall WIPO 's 
comments on the draft Code;   
• 1st wee k of July 2022 | Timor -Leste Government sen t an additional Technical Assistance 
request to WIPO to provide regional IP Expert ; 
• 3rd Week of July 2022 | Timor -Leste c onsolidate d and sen t a response to WIPO on IP code 's 
comments.  
An overarching timeline is al so provided in A nnex 19 - Action Plan for the implementation of the 
WTO TRIPS Agreement in the draft Report of the Working Party . A copy of the draft Code, as of July 
2022,  has been provided for review by the Working Party ( see notice of legislation WT/ACC /TLS/23 ). 
Question 22  
Paragraph 245 : In this paragraph,  the representative of Timor -Leste explained that a draft 
Industrial Property Code was being developed and would be "available in the first half of 
2022" for review by the Working Party and its Members.  However, the representative 
stated that legislation o n copyrights and related rights, geographical indications, and 
treatment of plant varieties "were yet to be developed separately."   
• Please provide a possible timeline on when Timor -Leste expects to develop 
draft legislation concerning copyrights and relate d rights, geographical 
indications, and treatment of plant varieties.  
Answer:  
We kindly confirm that the timeline to develop the concerning legislation is highlighted in A nnex 19 
- Action Plan for the implementation of the WTO TRIPS Agreement in the draft Report of the Working 
Party. A copy of the draft Industrial Property Code (which includes sections geographical indications) 
and the draft Copyright Law has been provided for review by the Working Party (see legislation 
notice WT/ACC/TLS/23).  
VI. POLICIES  AFFECTING TRADE IN SERVICES  
Question 23  
Section VI " Policies Affecting Trade in Services ": Does Timor -Leste intend to join the 
Services Domestic Regulation Joint Statement Initiative as part of its WTO accession? 
We note that Timor -Leste's participation in the Initiative could help maximise the benefits 
of its new market access commitments under GATS – for Timor -Leste and other WTO 
Members – by promoting less opaque and burdensome regulation which can hamper 
services trade. We re-affirm our willingness to practically support Timor -Leste in joining 
and implementing the Initiative.  
Answer:  
We are pleased to inform the delegation that Timor -Leste has made a joint statement on 
14 June 2022 on Timor -Leste 's intention as the first LDC and the first Observer to take part in this 
initiative. A respective draft commitment is to be  reflected in the dra ft Report of the Working Party. 
As a pioneer for the LDCs, Timor -Leste echoes Member 's view that this Initiative could help to 
promote good governance and improve public service delivery to the private sector, in the Services 
trade through expanding our co mmitments beyond GATS.  WT/ACC/TLS/24  
 
- 17 - 
 
  At the same time, we extend our appreciation to the Member  for its willingness to practically support 
Timor -Leste to effectively implement these initiatives. In addition, Timor -Leste remains open for 
additional support to be provided  by other WTO Members in this regard  in ensuring our effective 
participation as a member of this initiative.  
VIII.  TRADE AGREEMENTS  
Question 24  
Paragraph 301 : The paragraph says:  "In parallel, considering Timor -Leste's commitment 
to accede to the WTO and ASEAN, the Government continued to work on strengthening its 
institutional and legal framework to be in conformity with these agreements. State of play 
regarding Timor -Leste's ASE AN accession is provided in Annex 26. Could Timor -Leste 
please update about the latest developments in Timor -Leste's ASEAN accession?  
Answer:  
• The ASEAN Socio -Cultural and Economic Community Pillar s have concluded the ir Fact-Finding 
Mission s (FFM)  on Timor -Leste accession from 5 to 9 July and 18 to 21 July 2022, respectively.  
• The ASEAN Fact -Finding Mission on Political -Security Community Pillar was concluded in 2019.  
• The ASEAN FFM delegations and the ASEAN Secretariat will prepare the fact -finding mission 
report and submit it to the Senior Economic Official Meeting (SEOM) meeting in August 2022. 
The SEOM will review and provide a comprehensive assessment report to the ASEAN Economic 
Ministers (AEM) meeting in September 2022 for consideration.  
• The ASEAN Coor dinating Council Working Group (ACCWG) on Timor -Leste 's ASEAN Membership 
Application, which consist of Senior Officials from Economic, Socio -Cultural, and 
Political -Security community pillar will meet in October 2022 to consolidate the three FFM 
assessment  reports and the respective ASEAN Ministerial meeting 's outcome for the ASEAN 
Summit in November 2022.  
• ASEAN admits new members based on consensus within the ASEAN Summit upon ASEAN 
Coordinating Council (ACC) recommendation (ASEAN Charter, Article 6.3).  
Question 25  
Could Timor -Leste please inform of its effort for the ratification of ILO fundamental 
conventions No. 105 on Abolition of Forced Labour and No. 138 on Minimum Age? 
Answer:  
Timor -Leste has currently ratified six of the 11 fundamental ILO Conventions, including Conventions 
No. 29 on Forced Labour,  No. 87 on Freedom of Association and Protection of the Right to Organise 
Convention , No. 98 on Right to Organise and Collective Bar gaining Convention , No. 100 on Equal 
Remuneration, No.  111 on Discrimination (Employment and Occupation) and No.  182 on the Worst 
Forms of Child Labour . Timor -Leste is currently in the process of ratifying the ILO Conventions 
Nos. 105 and 138. The process is expected to be completed before the end of the year.  
In any case, Timor -Leste 's current legal framework already contains most of the prescriptions of 
Conventions Nos. 105 and 138 :  
i. Regarding ILO Convention No. 105, forced labour is prohibited by the Constitution 
(Article 50(4)). The provisions of the ILO Convention No. 105 are contained in Article 8 of 
the Labour Code No. 4/2012 of 21 February  2012 (earlier provided for review by the Working 
Party) . Timor -Leste has already ratified most of the UN Conventions on Human Rights.  
ii. Regarding ILO Convention No. 138, special protection to children is consecrated in Article 
18 of the Constitution. The specific provisions of the ILO Convention No. 138 are contained 
in Articles 66 to 70 of the Labour Code No. 4/2012 of 21 February  2012. Timor -Leste has 
ratified most UN Conventions on Human Rights, including the UN Conven tion on the Rights 
of the Child and its optional Protocols through the Resolution of the National Parliament 
No. 16/2003 of 30 July  2003.  WT/ACC/TLS/24  
 
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  Question 26  
Could Timor -Leste please inform of its steps to bring itself into compliance with the IL O 
reporting obligations?   
Answer:  
Timor -Leste is conscious of the need to achieve full  compliance with its regular reporting obligations  
in the ILO . The Secretariat of State for Professional Training, under the Coordinating Minister for 
Economic Affairs  (MCAE) , is responsible for gathering the relevant information in order to prepare 
the reports for submission to the ILO. Periodic reports have been sent to ILO as per the organization 
requests or as per the periodic obligations as contained in the ILO Constitution and specific 
Conventions . At the same time,  several  compulsory reports and answers to direct requests are still 
pending. Timor -Leste has submitted regular reports on Conventions Nos. 87 and 98 but has not yet 
submitted the compulsory repor ts for Conventions Nos. 100 and 111.  
Furthermore, Timor -Leste plans on asking for technical assistance to ILO/ITCILO in order to increase 
the capacit y of the experts in this area , to achieve full compliance as early as possible . 
 
__________  
 