RESTRICTED
WORLD TRADE WT/ACC/ALB/8/Add.3
14October 1996
ORGANIZATION(96-4246)
Original: English
ACCESSION OFALBANIA
Additional Questions andReplies
Addendum
Thefollowing replies toadditional questions andreplies, totheMemorandum ontheForeign
Trade Régime (document L/7613) andtotheearlier Replies toQuestions (documents WT/ACC/ALB/3
andWT/ACC/ALB/4), related tothetaxsystem havebeenreceived from theMinistry ofIndustry,
Transport andTrade oftheRepublic ofAlbania.
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Question 1
Regardingexcisetaxes(WT/ACC/ALB/3,question19,page13),Albaniaadvisesthathigher
excise taxes areapplied tocertain imported commodities toprotect domestic production andthat
these are"temporary measures". Theapplication oftheexcise taxinsuchamanner isinconsistent
withGATT Article IIIandwillhavetobealtered toconform toWTO requirements onaccession.
Intheresponse toquestions 18and19inWT/ACC/ALB/3 Albania hasreplied thatfor
reasons ofprotection, certain imported products aretaxed more heavily thansimilar domestically
produced products. Please indicate when Albania willeliminate thisdiscrimination.
Answer.
Albania isaware thatthesemeasures conflict withGATT Article IIIandwehavenoted carefully
theWorking Party'sconcerns about them. TheGovernment ofAlbania istaking steps toaddress
thisissue.
Question 2
The5percentsurcharge waseliminated inJuly1995 andthe15percentturnover tax
willbegradually replaced bythenewVAT system. Have anyother changes beenmade incharges
onimports? Have anynewcharges beenintroduced? Ifso,atwhat rateandonwhat products?
Answer.
Thesurcharge taxwaseliminated inJuly1995andtheturnover taxwasreplaced bytheValue
Added TaxinJuly1996. Since thelastmeeting oftheWorking Party on29-30 April 1996, there
havebeenafewchanges made inthesystem ofexcise taxes applied toimports. On29June1996,
theCouncil ofMinisters approved aDecree (number 1511) regarding excise duties applicable tocertain
./.WT/ACC/ALB/8/Add.3
Page2
commodities. Forsoftdrinks, theexcise taxforimports is30percent,while fordomestically produced
softdrinks thetaxwaslowered to5percent. Thetaxondomestically produced mineral andcarbonated
water wasremoved, while thetaxonimports is20percent. Thetaxondomestically produced gasoline
withanoctane rating of45to89.9wasestablished at53percent, andforimports at60percent.
Question 3
Inthereply toquestion 17inWT/ACC/ALB/3 itissaidthatcommodities needed for
investment intourism activity areexempt from excise duties, ifcommodities ofcomparable price
andquality cannot befound ontheAlbanian market. Please elaborate further onthenature
andscope ofsuchtaxexemptions.
Answer.
Thecommodities needed forinvestment intourism activities areexempt from import duties
aswellasfromexcise duties onlywhen suchcommodities arenotfound intherequired quality, quantity
andprice inthedomestic market. Theexemption covers onlyimported commodities forinvestments
related totourism promotion.
Question 4
TheLawonValue Added Taxapproved in1995 considers alistofexceptions. Does the
present legislation foresee incentives incase offoreign investments aimed atestablishing
joint-venturesorotherformsofindustrialcollaboration,inadditiontothetaxexemptionmentioned
inreply 17inWT/ACC/ALB/3.
Answer.
TheLaw"OnValue Added Tax"approved in1995andentered intoforceinJuly1996provides
thatjuridical andnatural persons withforeign capital orjoint-venture companies thatimport machinery
andequipment willbecredited forthepaidVAT.