RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/ALB/29
30 March 1999
(99-1303)
Working Party on the
Accession of AlbaniaOriginal:  English
ACCESSION OF ALBANIA
Additional Questions and Replies
The following replies to questions raised by Members have been received from the Ministry
of Economic Co-operation and Trade of the Republic of Albania, with the request that they be
circulated to Working Party members.
The replies in this document should be read in conjunction with the following documents:
- New Albanian Legislation and Status of Draft Legislati on (WT/ACC/ALB/33);
- Information Concerning Progress in the Privatisation Process (WT/ACC/ALB/28);
- Memorandum on Restrictions and Prohibition for Importable Products (WT/ACC/ALB/35);
- Memorandum on Restrictions and Prohibition for Exportable Products (WT/ACC/ALB/34);
- Memorandum on Compliance with Technical Barriers to Trade (WT/ACC/ALB/32);- Memorandum on Compliance with Sanitary and Phytosanitary Measures
(WT/ACC/ALB/31);
- Memorandum on Conformity with Trade-Rela ted Investment Measures (WT/ACC/ALB/30);
- Memorandum on Conformity with Trade-Related Aspects of Intellectual Property Rights
(WT/ACC/ALB/36);
- Revised Draft Schedule on Agricult ure (WT/ACC/SPEC/AL B/4/Rev.1);  and,
- Revised Draft Schedule on Serv ices (WT/ACC/SPEC/ALB/5/Rev.2).
_______________WT/ACC/ALB/29
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TABLE OF CONTENTS
Page
No.Question
No.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE2. Economic Policies
(a) Main directions of ongoing economic policies 4 1-2
Price control 4 3-4
Privatisation 5 5
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE IN GOODS AND TRADE INSERVICES
1. Power of the Executive, Legislative and Judicial Branches of
Government 5 6
3. Division of Authority Between Central and Sub-Central
Governments 6 7
6. Description of Judicial, Arbitr al or Administrative Tribunals or
Procedures 7 8
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation(a) Registration requirements for engaging in importing 7 9
(b) Characteristics of national tariff 7 10
(c) Tariff quotas, tariff exemptions 8 11
(d) Other duties and charges, specifying any charges for services
rendered 8 12
(e) Quantitative import restrictions, including prohibitions, quotas
and licensing systems 9 13
Medicines and drugs 9 14
Pesticides 10 15
Seeds and seedlings 10 16
Live animals 11 17-18
(f) Import licensing procedures 12 19-21(h) Customs valuation 13 22-23
(j) Pre-shipment inspection 14 24
(k) Application of internal taxes on imports
Excise tax 15 25-27
Value added tax 17 28-30
(m-o) Anti-dumping, countervailing duty and safeguard regime 18 31-35
2. Export Regulation
(b) Customs tariff nomenclature, types of duties, etc. 19 36
(c) Quantitative export restrictions, including prohibitions, quotas
and licensing systems 19 37-41
(d) Export licensing procedure 21 42
(f) Export financing, subsidy and promotion policies 21 43-44
3. Internal Policies Affecting Foreign Trade in Goods
(b) Technical regulations and standards 22 45-51
(c) Sanitary and phytosanitary measures 24 52
(d) Trade-related investment measures 25 53
(e) State-trading practices 25 54-55WT/ACC/ALB/29
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Page
No.Question
No.
(f-g) Free zones, free economic zones 28 56
(i) Mixing regulations 29 57
(j) Government-mandated counter-trade and barter 29 58(l) Government procurement practices 29 59
4. Policies Affecting Foreign Trade in Agricultural Products
(c) Export prohibitions and restrictions 30 60
(d) Export credits, export credit guarantees or insurance programmes 30 61-63
(e) Internal policies 31 64
Table DS:1 – Green box measures 32 65Table DS:2 – Measures exempt from reduction commitments 33 66
Table DS:4 – Calculation of the total aggregate measurement of
support (AMS)34 67
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy 34 68-69
2. Substantive Standards of Protection
(a) Copyright and related rights 36 70-71(b) Trademarks 38 72
(e) Patents 38 73
VI. TRADE-RELATED SERVICES REGIME
1. General 39 74
3. Market Access and National Treatment
Horizontal commitments 39 75-79
Specific service sector or sub-sector
1. Business services 41 80-822. Communication services 42 83-85
3. Construction and related engineering services
4. Distribution services 43 86
5. Education services 43 87
6. Environmental services 43 88
7. Financial services
- Insurance services
- Banking and other financial services (not including
insurance)43
4489-90
91-95
8. Tourism services 46 96
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral or Plurilateral Agreements Relating to Foreign Trade in
Goods and Trade in Services 47 97WT/ACC/ALB/29
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II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions of ongoing economic policies
Question 1.Re: Question 4. (WT/ACC/ALB/23/Rev.1).  Does the Albanian legislation foresee measures
aimed at the economic development of specific areas or regions of the country or aimed at the
development of specific sectors?
Answer:
There are no tax exemptions or reductions to certain sectors and/or geographical areas.  Those
policies that are general (applying to general national programmes or all sectors of the economy) are
WTO compatible.
Question 2.
Re: Question 8. (WT/ACC/ALB/23/Rev.1).  Could Albania specify the "certain conditions"
under which foreigners can lease agricultural land.
Answer:
According to the Law on Leasing Agricultural Land, Meadows, Forestry and Pastures Which
are State-Owned Property, No. 8337, dated 30 April 1998, foreigners can lease agricultural land for
99 years.  The criteria for calculating the duration of leasing land is the same for juridical, physical,
domestic and foreign persons.
- Price control
Question 3.Please give an update on Albania's price controls, if any.
- Please provide details on the scope and op eration of the regulatory control of the
commodities where controls remain.
- Does the Government of Albania plan to elimin ate these controls in the future?  If so, is
there a timetable for elimination?
Answer:
No changes in the list prescribed in Chapter III of WT/ACC/ALB/25
Question 4.
Re. Question 25 of WT/ACC/ALB/23/Rev.1.  This answer refers to cessation of minimum
pricing practices when the customs code comes into force.  Has the code been finalised, and if so,
can we have a copy for examination?WT/ACC/ALB/29
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Answer:
According to the Law on Customs Code of the Republic of Albania, No. 8449, dated
27 January 1999, the practice of minimum pricing has ceased.  In Chapter 3, Article 33-40 customs
valuation is defined and in compliance with WTO procedures.  A copy of the Customs Code was
submitted to the WTO Secretariat in 1998 (WT/ACC/ALB/24).
- Privatisation policy
Question 5.The Albanian Government reports that there are no State-trading enterprises under
GATT 1994 Article XVII, that a few foreign trade enterprises previously enjoyed a monopoly
on import and export activities, but that this e nded in 1991 with the passage of the Law on State
Enterprises.
Legislation in 1991 gave all enterprises in Albani a the right to import and export freely in
accordance with the principles of a market-based economy.  Amendments to the Law on State
Enterprises after 1991 transformed remaining State enterprises into commercial or share-
holding companies for privatisation.
Albania confirms in WT/ACC/ALB/23/Rev.1 the right of all enterprises, public or private, to
import or export and that all enterprises, public  or private, have the right to purchase and sell
goods on the international market  without respect to origin.
We would like to see this information reflected in the draft Working Party Report in an
appropriate form.
Answer:
See the Memorandum on the Updated Situation in the Privatisation Process (document
WT/ACC/ALB/28).
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
1. Power of the Executive, Legislative and Judicial Branches of Government
Question 6.Please describe the process by which Albania will ratify the protocol package containing the
terms of its accession to the World Trade Organization.
Please indicate the status of WTO provisions after ratification vis-à-vis  laws still in place in
Albania that may not conform to its provisions.
- How will Albania's goods and service market-access commitments be enacted in law?- Will the WTO provisions be self-executing?  Will it be necessary to repeal conflicting
laws and regulations to enforce WTO provisions?WT/ACC/ALB/29
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Answer:
According to Law No. 8417, dated 21 October 1 998 “On the approval of Constitution of the
Republic of Albania”, membership of Albania in the WTO shall be ratified by a special law in the
Albanian Parliament.
See Articles 121-123 of the “Constitution of Albania”, a copy of which is deposited in the
Secretariat of WTO (document WT/ACC/ALB/26/Add.2).
The Council of Ministers Decision No. 492 dated 29 July 1998 approved the setting up of the
Albanian Secretariat for Co-ordination of Relations with the WTO and the Albanian Negotiators
Group, which is composed of the members of all ministries and institutions related to WTO issues.
Based on the Law No. 8371 dated 9 July 1998 “On Concluding of International Treaties and
Agreements”, all agreements in which the Government of Republic of Albania is subject, are
approved in principle by the Council of Ministers, and the authority on discussions and signing is of
the Prime Minister’s competence.  According to the Council of Ministers Decision No. 749, dated27 November 1998, “Strategy on the Third Round of Negotiations for the Albania Accession in
WTO”, the Albanian Offer on Goods and Services, was approved.
According to the Constitution of the Republic of Albania, the ratifying of the WTO Accession
Agreement is approved by the Parliament of Albania.  After its accession to the WTO, the AlbanianState, through the Albanian Secretariat for Relations Co-ordination with WTO, will supervise the
accurate implementation of Albania's obligations and commitments to the WTO and its Members.
3. Division of Authority Between Central and Sub-Central Governments
Question 7.
Please indicate the sub-central authority to enact measures covered by the WTO Agreements.
What authority is held by the Government of Albania to override decisions by sub-central
authorities that conflict with  WTO provisions.  How do traders secure central government
action to enforce WTO provisions, e.g., will the government act on its own capacity, or do
traders need to go through the courts or othe r enforcement mechanisms to secure action?
Answer:
As part of the trading system, foreign trade policy is treated by the Ministry of Economic Co-
operation and Trade, as well as by all related ministries.  Its implementation is carried out by therelevant ministries and institutions of the public sector in Albania.
From the point of view of the public administration, the Albanian Secretariat for Relations
with the WTO, is the structure which is respon sible for supervising the implementation of all
commitments generated by the membership of Albania in the WTO, and all benefits derived by suchmembership.  Within the ministries structure, there is the Albanian Negotiators Group, whose
members are responsible for fulfilling, from their relevant point of view, implementation of the
obligations and realisation of benefits derived by Albanian membership in the WTO.WT/ACC/ALB/29
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6. Description of Judicial, Arbitral, or Administrative Tribunals or Procedures
Question 8.Please outline the administrative appeals proces s for customs and other issues covered by WTO
provisions and the right of appeal to an independent tribunal, whether or not judicial, by
traders.
Answer:
In Albania there are three degrees of appeal within the judicial system.  The first degree, is
composed of First Degree Courts,  which function in all districts of Albania.  These have relevant
sections of different complaints (penal, civil, administration, family section, etc.).  The second
degree,, consists of the Appeal Court , with branches in 5 districts in Albania, having under their
jurisdiction the relevant territory defined by the Law approved by Parliament. The third degree,
consists of the appeal of the High Court , with its centre in the capital of Albania.  This court is
composed of three colleges:  Penal, Civil and Administrative, which are responsible for reviewing andanalysing complaints by relevant areas.
The Constitutional Court is the Head of juridical system, which guarantees the respect of
Constitution of Republic of Albania, and carries out its final interpretation.  This court is subject only
to the Constitution.  See the Constitutional Law of Albania, parts 8 and 9.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing
Question 9.Does Albania maintain activity licensing for some occupations (e.g., to wholesale or import
alcoholic beverages, to distribute tobacco produc ts) that provides for additional requirements to
engage in trade?  If so, please list the activiti es covered and the proced ures for obtaining these
licences.
Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with WTO principles (with regard to theestablishment of a single unit that will serve as a contact point, according to Article No.  15 of new
Law “On Standardisation”, Albania will need a bout 2 years).  See the Memoranda on Conformity
with SPS, Conformity with TBT and Import Licensing and Prohibitions on Importable Products
(documents WT/ACC/ALB/31, 32, and 35, respectively).  There are no non-tariff measures other than
those measures described in the memorandum.
(b) Characteristics of national tariff
Question 10.
What is the current status of "special duties" as discussed in WT/ACC/ALB/11?WT/ACC/ALB/29
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Answer:
The Government of Albania remains committed to Trade Reform and to the maintenance of a
liberal trade-regime.  Actually, the Government passed the new structure of tariffs, rationalising it,
and design offsetting fiscal measures, whose initial steps will be taken in March 1999.  It involves aphased reduction in the average tariff rate over the medium term, through a combination of reductions
in the level, number and dispersion of rates.  This, in order to achieve a simple and transparent tariff
structure with relatively low (through reducing maximum tariffs rates from 30 to 20 per cent, in
March 1999, and 15 per cent on 2001) and more uniform tariff rates.  The excise tax is uniform for
foreign and domestic goods.
Albania has no export taxes.  Albania will eliminate all export prohibitions at the time of
accession (see the Memorandum on Export Licensing and Prohibitions on Exportable Products,
document WT/ACC/ALB/34).
(c) Tariff quotas, tariff exemptions
Question 11.
Albania's Law No. 8163 (7 November 1996) exempts goods imported for investment from
customs duties.  This exemption does not apply to the physical and/or juridical persons granted
the title "promoted person", nor to projects and investments approved prior to the date of thelaw (section IV.1(e), WT/ACC/ALB/23/Rev.1).
- With regard to "promoted persons" and previously approved investments, please
provide additional information on the defini tion of such entities, their foreign trade
activity and the rationale for exclusion from duty free importation for investmentpurposes under Law No. 8163.
- Please indicate any requirements in Law N o. 8163 attached to the tariff exemptions.
Answer:
Since 1 January 1998 all machinery and equipment imported as investments are not exempted
from customs duties.
(d) Other duties and charges, specifying any charges for services rendered
Question 12.Please report on Albania's customs charges, listin g them and indicating how it is related to the
cost of the service.
Answer:
Albania confirms that according to its custom charges, it has no "other duties and charges”.WT/ACC/ALB/29
Page 9
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 13.The list of "prohibited imports" in WT/ACC/ALB/25 makes it clear that Albania operates an
import licensing regime to address concerns relate d to threats from import to plant, animal and
human health and safety.
Nevertheless, Albania now states inWT/ACC/ALB/23/Rev.1 that it has abolished all import
licence requirements along with quantitative restr ictions, and the responses to Questions 16-21
on import licensing are very unclear.  Albania has stated that it applies technical regulations
and other criteria for importation at the border that require importers to secure certificationand permits to import certain kinds of goods.
Article XI of the GATT 1994 and the WTO Agre ements on Import Licensing Procedures,
Technical Barriers to Trade and Sanitary and Phytosanitary requirements clearly cover such
requirements.
- Please review these questions and Albania's responses and provide the information
requested.
- Please review Albania's current system of border controls:  (a) list all products subject
to such technical regulations and other criteria, and (b) outline the criteria and
procedures to which they are subject.
- Please indicate how Albania's legislative regime for granting import permits and
licences meets the requirements of the WTO Ag reement on Import Licensing.  In those
areas where compliance is lacking, please in dicate Albania's plans for enacting these
provisions in law or regulation.
- We think that there is confusion in Albania's statements on licensing and we urge
Albania to review its regime in this regard with a view to bringing it into line with the
requirements of the Agreement on Import Licensing Procedures.
Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with WTO principles (with regard to the
establishment of a single unit that will serve as a contact point, according to Article No.  15 of thenew Law “On Standardisation”, Albania will need about 2 years).  See the Memoranda on Conformity
with SPS, Conformity with TBT and Import Licensing and Prohibitions on Importable Products
(documents WT/ACC/ALB/31, 32 and 35, respectively).  There are no non-tariff measures other than
those measures described in the memoranda.
Medicines and Drugs
Question 14.Concerning the requirement that imported medicines and drugs must have an import licence:- Are these automatic or non-automatic licences?  If automatic, please indicate the time-
frame within which they must be granted.  If non-automatic, please describe in detailWT/ACC/ALB/29
Page 10
the criteria that the imported medicines and drugs must meet to qualify for the licence.
Is "verification" the only criterion?  What is "verified"?
- Does Albania have a similar registration and licensing system in place for the sales of
domestic production of similar articles?  To what extent are the requirements listed inWT/ACC/ALB/18 applied to domestic production of similar goods and how is it done?
Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with WTO principles (with regard to the
establishment of a single unit that will serve as a contact point, according to Article No.  15 of thenew Law “On Standardisation”, Albania will need about 2 years).  See the Memoranda on Conformity
with SPS, Conformity with TBT and Import Licensing and Prohibitions on Importable Products
(documents WT/ACC/ALB/31, 32 and 35, respectively).
Pesticides
Question 15.Why has Albania not included material on its re gistration requirement for imported pesticides
in WT/ACC/ALB/19?
Please answer for pesticides the same questions as asked above on medicines and drugs.Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with WTO principles (with regard to the
establishment of a single unit that will serve as a contact point, according to Article No.  15 of the
new Law “On Standardisation”, Albania will need about 2 years).  See the Memoranda on Conformity
with SPS, Conformity with TBT and Import Licensing and Prohibitions on Importable Products and
Export Licensing and Prohibitions on Exportable  Products (documents WT/ACC/ALB/31, 32, 35 and
34, respectively).
Seeds and Seedlings
Question 16.
Albania states that "if the requested varieties for import are not included in the respective
Albanian Catalogue, but from a country of th e European Communities, the importation may be
allowed, only after the approval of the Ministry of Agriculture and Food on the request of the
State Entity of Seeds and Seedlings (SESS)".
The statement that "importation may be allowe d" implies that importation may also not be
allowed.
- What conditions need to be met in order for seeds to be imported?  When and on what
basis would importation not be allowed?  Why is the European Communities singled outfor this special treatment?  What would the status be for varieties originating in Asia or
North America?
- Why would new varieties of seeds and seedlings not be allowed to be imported?WT/ACC/ALB/29
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- This process appears to be inconsistent with GATT Article I since it affords preferential
treatment for the importation of seeds and seedlings from the European Communities
and discriminates against products from other destinations.
- It also appears to be inconsistent with GATT Article XI by effectively imposing a ban on
seeds and seedlings not listed in the catalogue.
- Moreover, as this process would constitute a form of non-automatic licensing as
described in Article 3 of the Agreement on Import Licensing Procedures, we seek
confirmation, based on a point-by-point comparison of Albania's regime with the
provisions on non-automatic licensing contained in the Agreement.
- At a minimum, Albania should establish a tr ansparent licensing system that identifies
products covered, reasons for restrictions a nd criteria for obtaining an import licence.
- We understand that Albania may have technical reasons for imposing these restrictions,
the technical requirements must be consiste nt with WTO provisions, including the SPS
Agreement.
- Lacking justification consistent with req uirements in the SPS Agreement, such as
conducting an appropriate risk assessment, demonstrating scientific evidence, andensuring that measures are applied in a non-discriminatory manner, we do not believe
that Albania's restrictions or requirements of seeds and seedlings are justified.
Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with WTO principles (with regard to the
establishment of a single unit that will serve as a contact point, according to Article No.  15 of the
new Law “On Standardisation”, Albania will need about 2 years).  See the Memoranda on Conformity
with SPS, Conformity with TBT and Import Licensing and Prohibitions on Importable Products and
Export  Licensing and Prohibitions on Exportabl e Products (documents WT/ACC/ALB/31, 32, 35 and
34, respectively).  There are no non-tariff measures other than those measures described in thememoranda.
Live animals
Question 17.Albania states that the Ministry of Agriculture and Food is in charge of organising the licensing
procedures for imports and exports of live animals and for imports of seeds and seedlings.
- Is the licensing on live animals statistical or restrictive licensing?In Question 21 of WT/ACC/ALB/23/Rev.1 Albania states that "by decision of the Central
Commission of Improvement of Race (CCIR) the applicants are given the requested
"permission" on the base of which the Albanian  Veterinary Service issues the licence for
import/export of the requested materials".
- What are the technical criteria for receiving the "permission" granted by CCIR
necessary to receive an import or export  licence for live animals?  Are there any
quantitative criteria?WT/ACC/ALB/29
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- If "permission" is denied how may applicants appeal the decision?
- Please indicate how the regulations associat ed with receiving the "permission" and the
licence are consistent with the provisions of  the WTO Agreement on Import Licensing
Procedures?
- Please indicate how the criteria for receiving the "permission" are consistent with the
provisions of the WTO Agreement on Sanitary and Phytosanitary Measures.
Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with WTO principles (with regard to the
establishment of a single unit that will serve as a contact point, according to the Article No. 15 of the
new Law “On Standardisation”, Albania will need about 2 years).  See the Memoranda on Conformity
with SPS, Conformity with TBT and Import Licensing and Prohibitions on Importable Products, andExport Licensing and Prohibitions on Exportable  Products (documents WT/ACC/ALB/31, 32, 35 and
34, respectively).
Question 18.
Could Albania provide an exhaustive list of products that are submitted upon importation to
quantitative restrictions, licensing or special au thorisation requirements, or special technical
requirements?
Answer:
Albania has supplemented its documentation with a Memorandum on Import Licensing and
Prohibitions on Importable Products (WT/ACC/ALB/35).   There are no non-tariff measures other than
those measures described in the memorandum.
(f) Import licensing procedures
Question 19.
In Question 18 of WT/ACC/ALB/23/Rev.1, Albania indicates that there are no import licensing
requirements or restrictions, provided the importer meets the technical regulations.  Can
Albania explain the nature of these technical reg ulations?  Which law are they contained in?
Are they applied in a manner that is consistent  with WTO rules?  Which government authority
is responsible for their enforcement?  Is there an  appeal process available for an importer that
fails to meet these regulations?
Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with the WTO.  See the Memoranda on
Conformity with SPS, Conformity with TBT and Import Licensing and Prohibitions on Importable
Products (documents WT/ACC/ALB /31, 32 and 35, respectively).WT/ACC/ALB/29
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Question 20.
Re: Question 18. (WT/ACC/ALB/23/Rev.1).  Could Albania specify which import activity is
subject to technical regulation and the content of such regulations?  Do these regulations apply
also in case of temporary imports?
Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with WTO principles (with regard to the
establishment of a single unit that will serve as a contact point, according to Article No. 15 of the new
Law “On Standardisation”, Albania will need a bout 2 years).  See the Memoranda on Conformity
with SPS, Conformity with TBT and Import Licensing and Prohibitions on Importable Products
(documents WT/ACC/ALB/31, 32 and 35, respectively).
Question 21.
Re: Question 19. (WT/ACC/ALB/23/Rev.1).  Does Albania recognise foreign university-level
pharmaceutical qualifications and work experience?
Answer:
Albania is in the process of setting up a unit under the jurisdiction of the Ministry of
Education and Science, which will perform the issues of recognising foreign university diplomas
concerning all areas, including the pharmaceutical qualifications.  Although, up to now, within
professional licences in the pharmaceutical sector, we are dealing with foreign undergraduates, and
recognising their work experience.  See the Memoranda on Import Licensing and Prohibitions onImportable Products and Export Licensing and Prohibitions on Exportable Products (document
WT/ACC/ALB/34).
(h) Customs valuation
Question 22.
We are confused as to the legal regime in place for customs valuation at the present time.
Albania states in WT/ACC/ALB/23/Rev.1 that Law No. 8187 "On the Customs Valuation" was
approved by the Albanian Parliament on 23 January 1997, and that a draft Customs Code is in
preparation that also contains customs valuation provisions.
- Please give a status report on Albania's efforts to bring its customs valuation regime into
line with the WTO Agreement on the Implem entation of Article VII of the GATT 1994.
In particular, please list all relevant legislation and regulations in place and whether it
has been provided to the Working Party for review.
- Please indicate when minimum import prices will be fully abolished and replaced by use
of transaction value and the hierarchy of al ternative valuation methods listed in the
Agreement.
- Please confirm that the seven prohibited va luation methods provided for in Article 7 of
the Agreement have been abolished in Alba nia's customs valuation regime and cite the
provisions of Albanian law that confirm this.WT/ACC/ALB/29
Page 14
Answer:
According to the Law on Customs Code of the Republic of Albania, No. 8449, dated
27 January 1999, the practice of minimum pricing has ceased.  In Chapter 3, Article 33-40 customs
valuation is defined and in compliance with WTO procedures.  A copy of the Customs Code was beensubmitted to the WTO Secretariat in 1998 (WT/ACC/ALB/24).  With regard to rules of origin, the
Customs Code, Chapter 2, Article 29-32, describes the procedures to define origin of imported and
exported products into and out of the Republic of Albania.
Question 23.
Re: Question 24. (WT/ACC/ALB/23/Rev.1).  Please update the Working Party on the
elimination of minimum customs values and on the implementation of the Customs Valuation
Agreement.
Answer:
According to the Law on Customs Code of the Republic of Albania, No. 8449, dated
27 January 1999, the practice of minimum pricing has ceased. In Chapter 3, Article 33-40 customs
valuation is defined and in compliance with WTO procedures.  A copy of the Customs Code was been
submitted to the WTO Secretariat in 1998 (WT/ACC/ALB/24).  With regard to rules of origin, the
Customs Code, Chapter 2, Article 29-32, describes the procedures to define origin of imported andexported products into and out of the Republic of Albania.
(j) Pre-shipment inspection
Question 24.In WT/ACC/ALB/8/Add.9, Albania stated that it was preparing a law on pre-shipment
inspection.  Did that legislative initiative go forward?  Is there a current time table for
implementation?
If the proposed PSI programme is in place, plea se describe what services are provided, whether
or not mandatory, and how the Government of Albania contracts for their services anddisciplines their activities.  What is the cost structure for traders making use of any mandated
PSI services?
Is Albania prepared to take responsibility for the activities of the PSI firms that operate in its
name and ensure that they observe WTO provisions?
Answer:
According to the Law on Customs Code of the Republic of Albania, No. 8449, dated
27 January 1999, Parliament has added an article that only creates the possibility to have such service,if it is necessary.WT/ACC/ALB/29
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(k) Application of internal taxes on imports
-E x c i s e  t a x
Question 25.
Albania reports that Law No. 7678 dated 3 Ma rch 1993 "On Excise Taxes in the Republic of
Albania" has been revised by Law No. 8247 dated 2 October 1997 "On some changes to Law
No. 7678" and that there is a new "Law on Excise Taxes".
WT/ACC/ALB/23/Rev.1 states, however, that Alba nia's proposed excise tax amendments leave
discriminatory rates in place for the following:  tobacco and cigarettes, soft drinks, mineral and
carbonated water, alcoholic beverages and some petroleum by-products.
In response to Question 42 (WT/ACC/ALB/23/Rev.1) about differential levels of excise taxes on
imported and domestic goods.  Albania stated that it will "equalise the level of excise tax on
foreign and domestic goods".  This is essentially the same answer given two years ago in
WT/ACC/ALB/8.
- Please submit the HS numbers of all goods subject to excise taxation and explain the
method of excise tax calculation for each good.
- Please explain precisely the steps Albania is taking to bring its discriminatory excise
taxes into conformity with GATT Article III prior to accession, and the time table
Albania has for taking such measures.
- We seek a comprehensive report from Albania to the Working Party on the scope, level,
and status of its current excise taxes, li sting the products subject to these taxes by
product and by HS number.
In WT/ACC/ALB/25, Albania states that draft legislation was expected to be approved in
October 1998 and slated for implementation on 1 January 1999 that will equalise excise taxes on
imports and domestic goods.
- Please detail the status of this legislation and other specific steps Albania is taking to
eliminate discrimination against imported items in terms of the level of tax levels
applied.
- Please discuss Albania's plans to eliminate the tax level of differences among various
distilled alcoholic beverages in conformity wi th recent dispute settlement decisions, i.e.,
that different types of distilled spirits cannot be taxed at different rates.
Answer:
Albania has eliminated the discrimination in excise tax rates between foreign and Albanian
products in January 1999, according the Law on “Excise Tax” No. 8348 dated 28 December 1998.
Sub-categories of excise taxes still exist; however, within the Government of Albania, a professional
commission with experts of Ministry  of Agriculture and Ministry of Finance, is in the process of
creating the possibility of defining such subcategories.  Albania confirms that there is not any non-
conformity with Article III of GATT 1994.
The calculation of excise based on transacti on value plus custom duty is a simple way of
calculation suggested by IMF, in order that the unification of excise will be not accompanied with
budgetary implications.  From the other side, the calculation of domestic excise based on retail priceWT/ACC/ALB/29
Page 16
without VAT and excise, is considered as a relatively hard measure for those domestic industries,
either those which are totally degrading, or those that are still infantile.  A copy of the Law on Excise
was deposited in the Secretariat of the WTO (WT/ACC/ALB/26/Add.1).
Based on the above mentioned Law the HS numbers list of all goods subject to excise
taxation, is as follows:
HS CODE
Tobacco and cigarettes 2402.00 00
Alcoholic beverages 2203.00 00
2204.10 00
2208.00 00
Soft drinks 2202.00 00
Mineral and carbonated water 2201.00 00
Coffee 0901.00 00
Some petroleum by-products 2710.00 00
2704.00 00
The Law on Value Added Tax is in compliance with GATT 1994 and the WTO.  According
to Article 28 of the Law, there is no discrimination between imports and domestic goods and services.
This Article is a fair copy of Article 11:A(2.a)., of Title VIII of Directive VI of theEuropean Communities, which is compatible with Article III of GATT 1994.  Albania confirms that
based on the mentioned above laws and articles, there is not any difference in the treatment of
imports, and domestic furnishing and production of goods and services.
Question 26.
The Law No. 8348 on excise taxes provides in Article 4 that calculation of excise taxes for
domestically produced goods is based on pre-tax average retail price, whereas for imported
goods calculation is based on transaction value plus customs duties.  Could Albania justify this
difference of treatment between domestically produced and imported goods, and provide
information as to its compatibility with the requirements of Article III GATT 1994?
Answer:
Albania has eliminated the discrimination in excise tax rates between foreign and Albanian
products in January 1999,according to the “Law on Excise Tax” No. 8348 dated 28 December 1998.
Sub-categories of excise taxes still exist; however, within the Government of Albania, a professionalcommission with experts of Ministry of Agricult ure and Ministry of Finance, in the process of
creating the possibility of defining such subcategories.  Albania confirms that there is not any non-
conformity with Article III of GATT 1994.
The calculation of excise based on transacti on value plus custom duty is a simple way of
calculation suggested by IMF, in order that the unification of excise will be not accompanied with
budget implication.  From the other side, the calculation of domestic excise based on retail price
without VAT and excise, is considered as a relatively hard measure for those domestic industries,
either which are totally degrading, or those that are still infantile.  A copy of the Law on Excise is
deposited in the Secretariat of the WTO (WT/ACC/ALB/26/Add.1).WT/ACC/ALB/29
Page 17
Question 27.
Re: Draft law on excise taxes.  Please specify how the differentiation among the three classes of
cigarettes is operated.
Answer:
Albania has eliminated the discrimination in excise tax rates between foreign and Albanian
products in January 1999, according to the “Law on Excise“ No 8348 dated 28 December 1998.  Sub-
categories of excise taxes still exist; however.  Within the Government of Albania, a professional
commission with experts of Ministry  of Agriculture and Ministry of Finance, is in the process of
creating the possibility of defining such subcategories.  A copy of the Law on Excise is deposited inthe Secretariat of the WTO (WT/ACC/ALB/26/Add.1)
The Law on Value Added Tax is in compliance with GATT 1994 and WTO.  According to
Article 28 of the Law, there is no discrimination between imports and domestic goods and services.
This Article is a fair copy of Article 11:A(2.a)., of Title VIII of  Directive VI of EuropeanCommunities, which is compatible with Article III of GATT 1994.  Albania confirms that based on
the mentioned above laws and articles, there is no difference in the treatment of imports, and domestic
furnishing and production of goods and services.
- Value-added tax
Question 28.The Law No. 7928 on Value Added Tax provides in Article 26 that the taxable value of imported
goods includes tariffs, taxes and duties payable  upon importation.  Could Albania provide
information as to what is included in the taxable value of domestically produced goods in
respect of value-added tax and submit eviden ce that there is no difference of treatment?
Answer:
The Law on Value Added Tax is in compliance with GATT 1994 and WTO.  According to
the Article 28 of the Law, there is no discrimination between imports and domestic goods andservices. This Article is a fair copy of Article 11:A(2.a), of Title VIII of Directive VI of the
European Communities, which is compatible with Article III of GATT 1994.  Albania confirms that
based on the mentioned above laws and articles, there is no any difference in the treatment of imports,
and domestic furnishing and production of goods and services.
Question 29.
Re. Question 42 of WT/ACC/ALB/23/Rev.1 and page 38 of WT/ACC/ALB/25.  Albania's answer
to the questions on discriminatory application of excise taxes indicates that there is a new law
being drafted that will narrow or eliminate the differential treatment between foreign anddomestic goods.  It is a positive development that Albania recognises the need to amend this
legislation to be WTO consistent and has an intention to do this prior to accession.  Were the
new laws approved last year and implemented on 1 January 1999 as planned?  We would like to
examine the laws – is a copy available?
Answer:
Albania has eliminated the discrimination in excise tax rates between foreign and Albanian
products in January 1999.  Sub-categories of excise taxes still exist; however, within the GovernmentWT/ACC/ALB/29
Page 18
of Albania, a professional commission with expert s of Ministry of Agriculture and Ministry of
Finance, is in the process of creating the possibility of defining such subcategories.
Question 30.
Could Albania provide information on the rules of  origin system, in particular the procedure to
determine and proof the origin of products imported and exported to Albania.
Answer:
With regard to rules of origin, the Customs Code, Chapter 2, Article 29-32, describes the
procedures to define origin of imported and exported products into and out of the Republic ofAlbania.
(m-o) Anti-dumping, countervailing duty and safeguards regime
Question 31.What is the status of Law No. 7609 "On Customs Tariffs" which provided for "special"
customs duties, anti-dumping duties and countervailing duties?
Re. Question 15 (WT/ACC/ALB/23/Rev.1) and WT/ACC/ALB/25.  We commend Albania on its
efforts in preparing legislation on anti-dumping duties.
- Could Albania provide the Working Part y with an update of this legislation?
Answer.
The Law on Anti-dumping is before the Parliament and is expected to be approved by the end
of March.  This Law has been based on the draft of the WTO Secretariat compiled with technical
assistance.  This Law will be in full conformity with the principles of the WTO.  Albania will have
legislation on anti-dumping and countervailing measures at the time of accession.
Question 32.
Please update Albania's plans to establish legislation providing for countervailing duties and
safeguards.
Answer:
The Government of Albania is currently in the process of drafting legislation for
countervailing duties, with technical assistance.  Albania will have legislation on anti-dumping and
countervailing measures at the time of accession.
The Government of Albania is currently in the process of drafting legislation for safeguards.
Question 33.
Re. Questions 15 and 38 of WT/ACC/ALB/23/Rev.1 (and pages 38-39 of WT/ACC/ALB/25),
Albania indicates that legislation on anti-dumping and countervailing duties was to be
submitted for approval by June/July 1998 and provided to the Working Party late in 1998.
What is the current status of this legislation?WT/ACC/ALB/29
Page 19
Answer:
The Law on Anti-dumping is before the Parliament and is expected to be approved by the end
of March.  The Government of Albania is currently in the process of drafting legislation for
countervailing duties.  Albania will have legislation on anti-dumping and countervailing measures atthe time of accession.
Question 34.
On page 38 of WT/ACC/ALB/25 Albania indicates that it will provide more details on its plans
in relation to safeguards.  When will these details be available?
Answer:
The Government of Albania is currently in the process of drafting legislation for safeguards.
Albania will have legislation on anti-dumping and countervailing measures at the time of accession.
Question 35.
Could Albania update the Working Party on the state of drafted and/or implemented
antidumping and safeguard legislation?  Has Albania initiated a study into countervailing
duties?  Is Albania ready to undertake not to impose any countervailing duties until a WTO-consistent legislation has been enacted?
Answer:
The Law on Anti-dumping is under discussion through the commissions within the
Parliament, and is expected to be approved by the end of March.  This Law is based on the draft of the
WTO Secretariat compiled with technical assistance.  This Law is full conformity with the principles
of WTO.  Albania will have legislation on anti-dumping and countervailing measures at the time of
accession.
The Government of Albania is currently in the process of drafting legislation for safeguards.
2. Export Regulation
(b) Customs tariff nomenclature, types of duties, etc.
Question 36.
Please confirm that Albania has no export taxes.
Answer:
Albania has no export taxes.  Albania will eliminate all export prohibitions at the time of
accession (see the Memorandum on Export Licensing and Prohibitions on Exportable Products,
document WT/ACC/ALB/34).
(c) Quantitative export restrictions, including prohibitions, quotas and licensing systems
Question 37.
Please confirm that Albania has no quantitative export restrictions or prohibitions other than
those listed in WT/ACC/ALB/25 on firewood, unprocessed wood;  sawed wood and beams;WT/ACC/ALB/29
Page 20
waste and scrap precious metals;  waste and scrap iron, steel, nickel, lead, zinc, tin and copper;
waste and scrap aluminium (except for waste alum inium packaging, such as aluminium cans for
soft drinks which had been imported);  and ingots.
Please give a WTO-compatible justification fo r the restrictions or discuss how Albania intends
to amend these measures to bring them into conformity with WTO provisions, e.g., export bans
are prohibited under Article XI of the GATT.
We urge Albania to find WTO consistent measures to achieve its policy goals, and work with the
Working Party to establish a timetable upon which these measures would replace the current
export bans.
Answer:
Albania has no quantitative export restrictions.  Albania has supplemented documentation on
export licensing by harmonised code, and has indicated that it will be in compliance with WTO
principles.  Albania will eliminate all export prohibitions at the time of accession (see the
Memorandum on Export Licensing and Prohibitions on Exportable Products, document
WT/ACC/ALB/34).
Question 38.
According to document WT/ACC/ALB/25, Albania currently applies export restrictions in the
form of prohibition to a number of products .  Albania has informed the working group that
most of these restrictions are provisional.  Co uld Albania provide a timetable for the lifting of
these measures as well as information as to the restrictions that are intended to be maintained?
Answer:
Albania will eliminate all export prohibitions at the time of accession (see the Memorandum
on Export Licensing and Prohibitions on Exportable Products, document WT/ACC/ALB/34).
Question 39.
Re.  Questions 40 and  41 of WT/ACC/ALB/23/Rev.1 and pages 7 and 8 of WT/ACC/ALB/25.  Is
Albania able to give a definitive indication of timing for removal of unjustified export
restrictions?  Can Albania provide a commitment th at, prior to accession, it will eliminate all
such measures that cannot be just ified under relevant WTO provisions?
Answer:
Albania will eliminate all export prohibitions at the time of accession (see the Memorandum
on Export Licensing and Prohibitions on Exportable Products, document WT/ACC/ALB/34).
Question 40.
Re.  Questions 40 and  41 of WT/ACC/ALB/23/Rev.1 and pages 7 and 8 of WT/ACC/ALB/25.  Is
Albania able to give a definitive indication of timing for removal of unjustified export
restrictions?  Can Albania provide a commitment th at, prior to accession, it will eliminate all
such measures that cannot be just ified under relevant WTO provisions?WT/ACC/ALB/29
Page 21
Answer:
Albania will eliminate all export prohibitions at the time of accession (see the Memorandum
on Export Licensing and Prohibitions on Exportable Products, document WT/ACC/ALB/34).
Question 41.
Albania affirms that export restrictions are temporary measures.  When will they be
eliminated?
Answer:
Albania will eliminate all export prohibitions at the time of accession (see the Memorandum
on Export Licensing and Prohibitions on Exportable Products, document WT/ACC/ALB/34).
(d) Export licensing procedures
Question 42.
In WT/ACC/ALB/25, Albania states that there are no commodities which are subject to an
export licence.
- Is this still the case?  If such requirements now exist, please update Albania's licensing
requirements for exportation and indicate whether the measure restricts trade or is
justifiable under WTO provisions.
Answer:
Albania has supplemented documentation on export licensing by harmonised code, and has
indicated that it will be in compliance with WTO principles.  Albania will eliminate all export
prohibitions at the time of accession (see the Memorandum on Export Licensing and Prohibitions on
Exportable Products, document WT/ACC/ALB/34).
(f) Export financing, subsidy and promotion policies
Question 43.Please confirm that Albania has no export subsidies.
Answer:
Albania does not maintain subsidies of any sort on industrial products or agricultural
commodities.  Albanian is binding agricultural export subsidies at zero (see the revisions on the
Schedule of Agriculture, docum ent WT/ACC/SPEC/ALB/4/Rev.1).
Question 44.
Re. Question 44 of WT/ACC/ALB/23/Rev.1.  Under the WTO Agreement on Subsidies and
Countervailing Measures, subsidies contingent upon export performance are prohibited.  CanAlbania explain the justification for its position that it may seek to introduce export subsidies in
the future?WT/ACC/ALB/29
Page 22
Answer:
Albania does not maintain subsidies of any sort on industrial products or agricultural
commodities.  Albanian is binding agricultural export subsidies at zero (see the revisions on the
Schedule of Agriculture, docum ent WT/ACC/SPEC/ALB/4/Rev.1).
3. Internal Policies Affecting Foreign Trade in Goods
(b) Technical regulations and standards
Question 45.On pages 16-18 of WT/ACC/ALB/25 Albania has provided an update on progress in
implementing these agreements.  Is Albania able to give a commitment that both agreements
will be fully implemented as from the date of Albania's accession?
Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with WTO principles (with regard to the
establishment of a single unit that will serve as a contact point, according to Article 15 of the new
Law “On Standardisation ”, Albania will need about  2 years.  See the Memoranda on Conformity with
SPS, Conformity with TBT and Import Licensing and Prohibitions on Importable Products(documents WT/ACC/ALB/31, 32 and 35, respectively).
Question 46.
Re: Question 45. (WT/ACC/ALB/23/Rev.1).  In the answer there are references to technical
rules and standards.  We assume that "technical rules" mean "technical regulations" as defined
by the TBT Agreement.  If not please explain the meaning of "technical rules".
Answer:
Yes, technical rules mean technical regulations.  The accreditation will be a separate activity
in the future and this is linked with the starting of the accreditation of certification bodies.  Today weaccredit only testing laboratories.  For this separation Albania will need about 2 years.  Albania has
supplemented documentation on SPS, TBT and import licensing by harmonised code, and has
indicated that it will be in compliance with WTO principles (with regard to the establishment of a
single unit that will serve as a contact point, according to Article No. 15 of the new Law “On
Standardisation”, Albania will need about 2 y ears).  See the Memoranda on Conformity with SPS,
Conformity with TBT and Import Licensing and Prohibitions on Importable Products (documents
WT/ACC/ALB/31, 32 and 35, respectively).
Question 47.
Re: Question 46. (WT/ACC/ALB/23/Rev.1).  Does Albania share the criteria mentioned in the
question?
Answer:
The accreditation will be a separate activity in future and this is linked with the starting of the
accreditation of certification bodies.  Today we accredit only testing laboratories.  For this separation
Albania will need about 2 years, this will depend on the economic development of Albania.
Standardisation is separate from certification because we have those activity in different departments.WT/ACC/ALB/29
Page 23
The standards process is open and every natural or juridical subject can participate in the technical
committee for standards, if they are interested to do so.  Some foreign companies participate in the
technical committee.  Draft standards are published and the comments period is from three to six
months.
Regarding certification, the market is open for other third party certification bodies and the
new Law on “Standardisation” only charge the national standards body to carry out certification, but
does not forbid other certification bodies carry out this activity in Albania.  The national standards
body will become independent from the government when the economic operators in Albania will
have interest and will support, from a financial point of view, this body.  See the Memoranda on
Conformity with SPS, Conform ity with TBT (documents WT/ACC/ALB/31 and 32, respectively).
Question 48.
Re: Question 48. (WT/ACC/ALB/23/Rev.1).  Could Albania submit a copy of the "Law on
Standardisation" to the WTO?
Answer:
The new Law on “Standardisation“ has been passed by the Parliament, and will enter into
force in March 1999.
Question 49.
Re: Question 49. (WT/ACC/ALB/23/Rev.1).  Could Albania explain when and why international
standards would not be used?
Answer:
The goal of Albania is to adopt as many international and European standards as possible and
this process is well under way.  The national standards will be used only for some local products
which are not subject to international trade.  However, having only voluntary standards, these will not
create a technical barrier to trade.
Question 50.
Re. Question 52. (WT/ACC/ALB/23/Rev.1)  Can local governments establish standards or
technical regulations?
Answer:
In Albania, the technical regulation will be established only by the national authority.  For
standards they will be issued by the national standard body in the fields of ISO/IEC or
CEN/CENELEC and by the Albanian Office for Tele communications Regulation in the field of ITU
or ETSI.
Question 51.
Re: Question 53. (WT/ACC/ALB/23/Rev.1).  In a ddition to providing the new draft law, could
Albania expand a little bit on the distinction between a standard and a technical regulation?WT/ACC/ALB/29
Page 24
Answer:
In the new Law on “Standardisation” the definitions of standard and technical regulation are
those given in Annex 1 of the TBT Agreement “Terms and their Definitions for the Purpose of this
Agreement”.  See the Memorandum of Confor mity with TBT (docum ent WT/ACC/ALB/32).
Update On TBT Compliance
The Law on “Standardisation” was passed by Parliament on 12 March 1999 and will be in
force in March 1999.  There are minor changes in the new Law concerning the definition of standards
and technical regulation.  Those definitions are taken from Annex 1 of the TBT Agreement.  The
legislation was prepared with technical assistance and is consistent with the WTO and TBTAgreements.
All standards are to be voluntary and technical regulations mandatory.  Standards will be
applied to foreigners and local producers in co mpliance with national treatment.  Technical
regulations will be used to protect human, animal or plant life or health or environment without beingmore trade -distorting than necessary.
All General Directory of Standardisation (GDS) work will be based on adoption of
international (ISO)  and regional (EN) standards.  In 1990, Albania had not adopted any foreign
standards; in 1998 the Republic of Albania has adopted 52 ISO, 4 IEC, 147 EN, and 62 from other
States.  The goal is to reduce the creation of national standards and to increase the adoption all above
mentioned ones.  Accreditation will be based on European standards series  45.000.  For certification
however, foreign certification bodies can carry out ce rtification activities in Albania.  The GDS is a
full member in ISO and an affiliated member in CEN.  In future, the GDS will be a member of IEC
and CENELEC.  In the preparation of standards, the emphasis is on product performance requirementrather than on design or descriptive requirements.  The process of preparation of standards is open,
transparent and free from commercial influence.  An Information Centre for Standards has been
created in compliance with the TBT Agreement’s call for an enquiry point.
The Code of Good Practice for Preparation, A doption and Application of Standards has been
translated into Albanian and will adopted as it is once the new Law on “Standardisation” is
implemented.  The GDS is preparing the decree of the Albanian Government to assure that allremaining activities will be in  compliance with TBT Agreement.
(c) Sanitary and phytosanitary measures
Question 52.We appreciate the report in WT/ACC/ALB/23/Re v.1 concerning Albania's intent to comply
with the SPS and TBT Agreements.  We look forward to further discussion on Albania's
conformity with the SPS and TBT Agreements.
- Please update the status of the draft standardisation law.
- Please confirm that this law or other law or regulation in Albania implements the
procedural and institutional requirement s of the WTO Agreement on Technical
Barriers to Trade e.g., the establishment of an enquiry point, prior to publication forcomment, etc.
- Please outline how the provisions of  the WTO Agreement on Sanitary and
Phytosanitary Measures is implemented in Albanian Law.WT/ACC/ALB/29
Page 25
Answer:
Albania has supplemented documentation on SPS, TBT and import licensing by harmonised
code, and has indicated that it will be in compliance with WTO principles (with regard to theestablishment of a single unit that will serve as a contact point, according to Article No. 15 of the new
Law “On Standardisation”, Albania will need about  2 years.  See the Memoranda on Conformity with
SPS, Conformity with TBT, Import Licensing and Prohibitions on Importable Products, and Export
Licensing and Prohibitions on Exportable Pr oducts (documents WT/ACC/ALB/31, 32, 35 and 34,
respectively).
The new Law on “Standardisation“ was passed by the Parliament, and will enter into force in
March 1999.
The goal of Albania is to adopt as many international and European standards as possible and
this process is well under way.  The national standards will be used only for some local products
which are not subject to international trade.  However, having only voluntary standards, these will notcreate a technical barrier to trade.
(d) Trade-related investment measures
Question 53.Albania states in WT/ACC/ALB/25 that it does not maintain or apply trade-related investment
measures (TRIMs).
- We would like to see this reflected in the Working Party Report.Answer:
Albania has supplemented documentation on Memorandum on Compliance with Trade-
Related Investment Measures (TRI Ms), see document WT/ACC/ALB/30.
(e) State-trading practices
Question 54.Re. the Law on State-trading Enterprises (WT/ACC/ALB/22).  Could the Albanian delegation
please elaborate on the "special provisions" noted in Article 6, paragraph 2, specifically, whatenterprises and goods are affected by these special provisions?
The responses to Questions 63 and 64 of WT/ACC/ALB/23/Rev.1 are not responsive.  Albania
has stated that approximately one-fifth of its international trade is generated by State-owned
firms and has listed exports of minerals such as ch romium ore, copper, etc. as part of this trade.
- Please list the major State firms that engage in trade and the products covered by their
activities.
- Please confirm that none of these firms receives State funds for its maintenance nor
contracts with the State for any imports or exports.WT/ACC/ALB/29
Page 26
- Please describe in more detail the role of agro-export in the trade and internal
distribution of agricultural products in Albania, whether or not Albania considers that
it has any advantage or privileges over the other State-trading enterprises.
In WT/ACC/ALB/8/Add.9, Albania stated that the sector of research, productions and
processing of fuel is organised by a corporat ion "ALBPETROL", which operates on the basis of
a licence issued by the National Agency of Hydrocarbons, as an entity depending on that
Ministry, with the right to negotiate with the interested subjects, local or foreign, in the field of
fuel and gas.
Other important sectors of the Albanian economy appear to be dominated by sole enterprises,
including:  research with minerals – GJEOALBA  corporation;  chrome mining, processing and
smelting – ALBKROM corporation; copper mini ng, smelting and production – ALBBAKER;
and production of electric energy by hydro and thermal plants – the Albanian Electroenergetic
Corporation (KESH).
Albania provided in WT/ACC/ALB/13/Add.1 the profile of the Albanian trading enterprise
Arteksport-Import.
- Please provide similar detailed profile repor ts for the following additional enterprises:
ALBPETROL, GJEOALBA, ALBKROM corporations, ALBBAKER and the Albanian
Electroenergetic Corporation (KESH).
- Is it not true that these firms have an ef fective monopoly, granted by the licence, to
dominate the level and direction of imports and exports, e.g., of Albania's consumption
of fuel and gas services?
- Do any of these enterprises operate under an exclusive licensing arrangement or
pursuant to other powers granted by the Government of Albania?  Do any enterprises
engaged in the mining or processing of the other products mentioned in your reply to
that question, coal, ferro-nickel, baoxides, dolomites, etc., enjoy similar exclusive
government-granted rights?
- Are there any other sectors where enterprises operate on the basis of a licence from the
government and, in effect, control trade in that sector?
- Please provide detailed information on each  such enterprise in  accordance with the
requirements of the Questionnaire on State-trading.
Answer:
The Electro Energetic Corporation (KESH), ALBKROM, ALBBAKER, ALPETROL
corporations, are operating based on the Law on “Commercial Enterprises”, No. 7638 dated
19 November 1992, which provides the same conditions and rules for public and private enterprises.Based on that Law, there are not any exclusivity right for these enterprises.  Commercial enterprises
are under the reconstruction process, preparing to be privatised very soon (See “Memorandum on the
Updated Situation on the Privatisation Process”, document WT/ACC/ALB/28).
These enterprises are not operating under any licence, which can affect the export-import
regime, except the items prescribed in the Memoranda of Import Licensing and Prohibitions on
Importable Products and Export Licensing and Prohibitions on Exportable Products (documents
WT/ACC/ALB/35 and 34, respectively).WT/ACC/ALB/29
Page 27
Also, on the application of the legal package on the privatisation of non-strategic sectors and
based on the analysis of the economic and financial situation of each enterprise.  We have compiled
the platform of their privatisation.  In doing so, we have collaborated with the Ministry of Public
Economy and Privatisation (MPEP) until the latter fully approved this platform.  In November 1998,
with a joint action plan with MPEP, Albania defined the schedule of actions needed to accelerate theprivatisation in the trade sector.
Only 10 enterprises and 5 branches of NSHPN in the districts have remained under the
supervision of out Ministry.  According to their privatisation platform, they are subdivided into:
Enterprises in direct privatisation, for which shall be proceeded according to the Decision of the
Council of Ministers No. 195, dated 20 March 1996 “O n the privatisation of enterprises that can not
be transformed” under which group the following enterprises are included:  Durres Trade Enterprise;Tirana Albcoop, Machinery-impex in Tirana as well as the branches of in Bulqiza, Fier, Kukes,
Sarande and Tirana.  These enterprises have already interrupted their activity, underwent big damage
and looting during the unrest of 1997, losses that can not be covered by them.  They do not have a
clear prospective for the future and have a limited number of employees.
For all the above mentioned enterprises, the valuation of State owned property has concluded
and further privatisation procedures are being followed through MEPP.
Enterprises that shall be transformed into commercial associations and later privatised are:
Agro-export, Industrial-Impex, Artexport and the Fridge Unit No. 2 in Tirana and the Fridge unit inDurres.  We have decided for these enterprises the above-mentioned privatisation mode as most of
them are in a good economic and financial condition, also based on their considerable depositing
capacities, the qualification and the reputation that they enjoy inside and outside the country, the
considerable income that they generate for the State budget in the form of taxes (approximately
150 million Leke per year) as well as the number of people that are employed in them.
The clarification and the systematisation of the foreign debt inherent in their name since 1992,
of United States' Dollars 60 million, is an additional reason why these enterprises were not privatised
in the classical mode.
For the fridge unit in Durres and the fridge unit No. 2 in Tirana, transformation has been
concluded and they have been registered as share holder companies. Industrial-impex, Artexport andAgro-export are in the process of registration as shareholder companies.  The privatisation of these
companies will start in June 1999.
The enterprise of Albcontrol Durres shall be transformed in a shareholder company which
shall preserve the State-owned shares according to  the Decision of the Council of Ministers No. 78,
dated 21 January 1999.  The reason for this is that this enterprise is a strong entity for the control of
the quality and quantity of export and import goods which has a good technical basis and qualified
specialists and creates greater opportunities to combat corruption and the abuse of private entities in
this field.
Albania have prepared and we shall send soon at the MEPP the evaluation documentation of
the property for the transformation of the Durres Albcontrol Enterprises in a shareholder company
with 100 per cent State owned capital.
Question 55.
The Law on State Enterprises of 17 July 1992 provides in Article 15 that the State does not
guarantee the obligations of State enterprises towards third parties.  Could Albania provideWT/ACC/ALB/29
Page 28
information as to whether this provision also applies to the liabilities of State commercial
enterprises towards foreign parties?
Answer:
Pending.
(f-g) Free zones, free economic zones
Question 56.In WT/ACC/ALB8/Add.7, in response to Question 3, Albania noted that there is a 1996 Decision
of the Government providing for the establishment and organisation of the National Entity for
the Development of Free Zones, which will have direct dependence on the Government.
- Is the 1996 Decision still in effect?  If so, please describe its provisions and indicate
whether any free zones have been established.
- What is meant by "direct dependence from the Government"?  Does the Decision
provide any criteria for the selection of firms to locate in the free zones?  Can foreign
firms locate in the zones on the same basis as domestic firms?  How will the operation of
the free zones be administered, directly by the government or through an exclusivelicence granted by the Government of Albania?  Will there by any trade-related
investment measures applicable to firms operating in the free zones?
Answer:
A new draft law and a draft regulation on “Free Zones” has been presented to the Council of
Ministers for approval.  A copy of this draft law will be made available to the Secretariat of WTO.
According to these drafts we clarify as follows:
- the Council of Ministers will decide from which institution the National Agency for Free
Zones will be depended on;
- establishment of a free zone, determination of its borders and legalisation of activities be
performed by this zone, are competency of Council of Ministers, after taking the approval
from the Head Council of National Agency for Free Zones and General Directory of
Customs;
- the selection of the companies is made according the procedures defined in the Regulation of
Free Zones based on the measurable economic criteria.  In the cases of tendering will be
defined the Terms of References for evaluation of the bids based on three criteria: capital,
time, and rent;
- according to the new draft law free zones can be established in the private or State sites and
can be administered by a private or state operator. Administration of free zone is made by the
operator which will be granted a licence after the application made near to the National
Agency for Free Zones and after taking the approval of the Council of the Ministers;
- according to the new draft law, free zones are not considered out of the customs territory.
This means that all the goods entering to this zone from the internal market are not considered
as exported goods and all the goods going out from this zone to the internal market are not
considered as imported goods;WT/ACC/ALB/29
Page 29
- all juridical or physical persons, domestic or foreigners, have equal possibilities to operate in
a free zone, if they fulfil all the criteria defined in the application procedures specified in the
draft regulation of the free zone.
Up to now in Albania has not established any free zone, but there exist feasibility studies for
two free zones.
(i) Mixing regulations
Question 57.
Please confirm that Albania has no law or regulation requiring use of domestic and imported
goods in certain proportions or any other sort  of mixing regulations applied to imports.
Answer:
Pending.
(j) Government-mandated counter-trade and barter
Question 58.Please confirm that Albania maintains no government-mandated counter-trade or barter.Please indicate if barter trade is permitted under Albanian Law?  If so, are duties, taxes and
other restrictions and requirements applied to imports and exports conducted as barter orcounter trade?
Answer:
Albania confirms that it does not maintain government mandated counter trade or barter.
(l) Government procurement practices
Question 59.We seek a commitment from Albania that upon accession it will initiate negotiations to joint the
Agreement on Government Procurement by tablin g an entity list and that it will move to
successfully conclude negotiations within a year of that date.
Answer:
As we declared at the Working Party meeting on 27 January 1999, Albania will join the
Multilateral Agreement on Government Procurement.
In this respect, upon accession we shall initiate negotiations to join this Agreement by tabling
an entity list and will move to successfully conclude negotiations within a year of that date.WT/ACC/ALB/29
Page 30
4. Policies Affecting Foreign Trade in Agricultural Products
(c) Export prohibitions and restrictions
Question 60.
WT/ACC/ALB/25 indicates that Albania has expanded its list of export prohibitions on
agricultural products to include, in addition to firewood and other unprocessed wood, cattle
hides, raw skins of sheep and lambs and other hides and skins
- While recognising that Albania may have good policy reasons for these measures, such
export bans are prohibited under Article XI unless justifiable under other WTO
provisions.
We urge Albania to find WTO-consistent measures  to achieve its policy goals and work with the
Working Party to establish a time table upon which these measures would replace the current
export bans.
Answer:
Albania has supplemented documentation on export licensing by harmonised code, and has
indicated that it will be in compliance with WTO principles.  Albania will eliminate all export
prohibitions at the time of accession (see the Memorandum on Export Licensing and Prohibitions onExportable Products, document WT/ACC/ALB/34).
(d) Export credits, export credit gu arantees or insurance programmes
Question 61.Albania has not used agricultural export subsidies in the past (Albania indicated in
WT/ACC/ALB/9 and WT/ACC/SPEC/ALB/4 that "Albania does not have any export
subsidies" – this remains the case).  However, we note that in document
WT/ACC/ALB/23/Rev.1, in answer to Question 82, Albania has stated that it is not in a position
to bind export subsidy commitments at zero.  We are concerned about this statement and seek
confirmation that Albania will indeed bind export subsidies at zero.
Answer:
Albania has bound export subsidies for agricultural commodities at zero (see the revisions on
the Schedule of Agriculture, document WT/ACC/SPEC/ALB/4/Rev.1).
Question 62.
Please clarify whether the figures provided in  the tables refer to actual expenditure or to
amounts included in the budget?  We also seek information as to whether it is likely that thefigures for 1998 will need to be revised, as they  were provided in August 1998 (which suggests
that they may be budget figures).
Answer:
The figures in the schedule on agriculture refer to actual expenditures.WT/ACC/ALB/29
Page 31
Question 63.
We would like to clarify whether Albania will be seeking developing country status for the
purpose of Agriculture subsidy commitments.  We note in the answer to Question 84 in
WT/ACC/ALB/23/Rev.1 that Albania refers to developing country commitments.  As we havenoted with other accessions, this is an issu e that will need to be agreed multilaterally.
Answer:
Concerning the developing country status, the Government of Albania is in discussion of that
question.
(e) Internal policies
Question 64.For the purposes of accession, Albania should prepare tables on domestic support and export
subsidies using the WTO Secretariat technical note WT/ACC/4.  Acceding countries are not
required to submit documentation using the formats presented in G/AG/2, upon which
WT/ACC/SPEC/ALB/4 appears to be based (although it is good practice for when Albania is a
Member of the WTO and participating in the Committee on Agriculture.
We encourage Albania to undertake commitments based on its current use of measures
consistent with "green box" (Annex 2) criteria and non-application of export subsidies.
Our comments will focus on the tables contained in WT/ACC/4, namely, Supporting Tables
DS:1 through DS:9 and Supporting Table ES:1
First, Albania should present data for a recent  base period, normally the most recent three
years, for which complete and final data are available.  Since 1998 just ended, it would be better
if Albania presented data for 1995-1997, or 1994-1996 if 1997 data are not yet available.  For
each table, please present data for each of the three years, not just the average.
Second, we have some specific questions relating to the measures Albania lists in Supporting
Table DS:1 (measures exempt from reduction "green box").  Generally speaking, it would be
useful to have a 1-3 sentence description of each  of the measures listed in this table and how
they meet Annex 2 criteria (this information can be inserted next to the programme name or
added as a footnote at the end of the table).
- Expenditures relating to fisheries (e.g., fish breeding and stock rehabilitation) should
not be included, since the Agriculture Agreement does not cover fish and fish products
(see Annex 1 to the Agreement).
- Expenditures relating to upkeep of buildin gs and other administrative costs, unless
directly related to the provision of a specific service, should also be omitted.  For
example, restoration of public administration buildings, listed under "other", does not
need to be included.
- Please provide more detail on the measures listed under "infrastructural services".
Expenditures to subsidise the cost of inputs (such as water) are not allowed (see
paragraph 2(g) of Annex 2).WT/ACC/ALB/29
Page 32
- Please provide more information on direct payments made as part of the "agri-business
– processing development" programme (structural adjustment through investment aids)
and environmental protection and conservation programmes (payments under
environmental programmes), with reference to  the specific criteria in paragraphs 11
and 12.
Third, we note that in Supporting Table DS:2 Albania notes that it does not provide generally
available input subsidies, except those from "medium term (3-5 years) international projects.
- Although there are no expenditures listed, Albania should be aware that it does not need
to include programmes that are funded by international projects in its domestic support
submission.
Lastly, a comment concerning support for flour for making bread, which Albania notes in
Supporting Table DS:4 was phased out in 1996.  Based on information presented in
WT/ACC/SPEC/ALB/1/Add.1  and WT/ACC/ALB/23/Rev.1, it appears that this measure
functioned as a price control on flour rather than market price support for grain producers.
- Annex 3 to the Agreement on Agriculture specifies that the Aggregate Measurement of
Support (AMS) be calculated as close as practicable to the first point of sale of the basic
agricultural product concerned, meaning that support to processors would not be
included in the AMS, except to the extent that it benefits the primary producer.
- If Albania set an applied administered price for wheat or other grains, or provided any
other product-specific subsidy, then this support should be captured in Albania's AMS.
- Based on the information provided, it does no t appear that the price control on flour for
bread would fit this description.
Answer:
Albania does not maintain subsidies of any sort on industrial products or agricultural
commodities.  Albania is binding agricultural export subsides at zero (see the revisions on the
Schedule of Agriculture, docum ent WT/ACC/SPEC/ALB/4/Rev.1).
Table DS:1 - Green box measures
Question 65.
We would be interested in further details on the programmes listed as green box programmes,
including the criteria for granting support, to ensure that they meet the requirements of
Annex 2 of the Agreement on Agriculture.
There are references to fish programmes under (A) General Services, Extension and Advisory
Services, and Infrastructural Services.  Programmes relating to fish are not covered by the
Agreement on Agriculture and are therefore not required to be included in the tables.
Albania has provided information on the average for the three-year period 1996-1998.
Information for each year should be provided separately.
Under (A) General Services, Research Institutes, Albania has referred to 12 institutions which
have been partially funded by the Ministry of Agriculture and Foods, and 12 institutions
partially funded by the Ministry of Education and Science.WT/ACC/ALB/29
Page 33
- Could Albania provide more about the organisations and the research they undertake?
Under (A) General Services, Other, Albania has included the restoration of public
administration buildings:
- Could Albania provide more details on this programme?  Does it relate to Agricultural
Administration or to General Administration?
Under (B) Public Stockholding for Food Security  Purposes, Albania notes that it maintains
grain reserves:
- Can Albania provide more details concerning the purchase and sale of grain?
Answer:
The revised schedule on agriculture has provided greater detail in the descriptions of the
green box measures (including the 12 research institutions) reported in Table DS:1, and the data have
been desegregated into the last three years.  The programmes related to fisheries programmes have
been excluded from the revised scheduled as they are not related to agriculture.  The restoration of
public buildings is in reference to the civil unrest of 1997 where government buildings were looted
and suffered physical structural damage requiring reparations.
Albania maintains buffer stocks of grain, but the volume of grain has steadily been
decreasing.  The volume kept under State reserves represents less than one percent of domestic
consumption in 1998 and the programme does not affect prices because the grain is sold by auction.
The quantity kept under State reserves is being reduced as a commitment taken in the framework ofthe Enhanced Structural Adjustment Facilities (ESAF) programme of the IMF.  (See the revised
Schedule on Agriculture, docu ment WT/ACC/SPEC/ALB/4/Rev.1)
Table DS:2 - Measures exempt from reduction commitments
Question 66.
Albania has included under (B) Input Subsidies generally available to low-income or resource-
poor producers, the provision of water at subsidised rates which we understand is provided only
to poor farmers.  However, Albania has not included any figures for this programme in the
most recent tables provided, although it  was included in the previous tables.
- Is this programme still in operation and is Albania still claiming this programme as a
measure exempt from reduction commitments?
Answer:
Input subsidies generally available to low income or resource-poor producers were made in
each of the years 1996-98 and are included in the revised schedule on agriculture.  The programme
was discontinued in 1998 and no water subsidies are provided in 1999.  No other input subsidies exist.WT/ACC/ALB/29
Page 34
Table DS:4 - Calculation of the total aggregate measurement of support (AMS)
Question 67.Albania says that it has not provided any domestic support to producers and notes that support
for flour for bread was lifted in 1996.  In its answer to Question 84 of WT/ACC/ALB/23/Rev.1,
Albania provides details of these programmes and on the calculations made in the earlier tables
provided.
- Can Albania provide clarification as to  whether there are currently any domestic
support programmes provided, and if so, details on these programmes?
Answer.
The computations of AMS are provided for each year 1996-98.  Since the price ceiling for
bread was removed in 1996, there is no support for agriculture and the AMS calculations are zero for
1997 and 1998.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
Question 68.This delegation appreciates the progress made since the last Working Party in drafting
legislating regarding the protection of intellectual  property in the territory of Albania to bring
Albania's laws and practices into conformity with the obligations of the TRIPS Agreement.
We have read carefully the information contained in Albania's Foreign Trade Memorandum, in
responses and other information provided in WT/ACC/ALB/23/Rev.1 and WT/ACC/ALB/25
and in draft legislation and explanations regarding draft legislation.
A chart was prepared, article by article, obligat ion by obligation, where we believe the laws of
Albania appear to conform to the obligations of the TRIPS Agreement and where changes
appear to be needed.
At the time we began preparing for this Working Party meeting, we did not have copies of all of
Albania's laws in their most up-to-date form.  Th e chart, therefore, represents our best efforts
and current views.  We reserve the right to amend our position on Albania's compliance with
the TRIPS Agreement in future based upon information we receive that clarify points or that
fill in the blank spaces where we currently lack information.
If the interpretation of Albania's laws reflected  in the chart is incorrect in any instance, we
would appreciate information on the correct in terpretation and any additional information
about your laws and practices that will clarify our understanding.
In those instances where we have indicated we la ck sufficient information to make a judgement
or where a blank follows an obligation, we also would appreciate your explaining howparticular obligations are met.
We hope that this tool will be as useful to you as it is to us in determining the consistency of
Albania's legislation with each of the obligations of the TRIPS Agreement.WT/ACC/ALB/29
Page 35
With regard to enforcement, additional inform ation will be needed regarding the actual
enforcement activities in Albania in order to judge whether the enforcem ent mechanisms in the
law are "effective", whether remedies are "exped itious", and whether remedies constitute "a
deterrent to further infringements".
We suggest that Albania provide comments on  the chart and information on enforcement in
writing as soon as possible for circulation to Working Party members, so that a common
perspective on Albania's TRIPS compliance can be achieved.
In the response to the final question in WT/ACC/ALB/8/Add.9, Albania states that "there is no
one system of enforcement at the borders in Albania".  Are borders controlled by federalauthorities or are they controll ed by sub-federal organisations?  Please describe each of the
border enforcement systems currently in place in Albania.
The protection of all forms of intellectual property is extremely important to industries, but it is
also of considerable importance to Albania, to encourage both domestic and foreign investmentand to ensure that those in Albania who create and innovate and who develop businesses are,
through the rewards available in connection with  intellectual property rights, encouraged to
continue those efforts.
Answer:
Please refer to the Memorandum on TRIPS Conformity (document WT/ACC/ALB/36).
Question 69.
Could Albania to provide further information on:
- Whether Albania provides for national treatment of nationals of countries of the Paris
Union, or those who have real and effective industrial or commercial establishment in
the territory of one of the countries of the Paris Union (Article 2 of the Paris
Convention).
- Whether Albanian Law provides for protection against unfair competition (Article 10 bis
of the Paris Convention).
Answer:
Albania accords national treatment to the citizens of member countries of the Paris Convent
or those citizens who have an industrial or commercial enterprise in a member country.
In the new draft law, there is an additional Article that determines the above-mentioned
treatment.  On a more general basis, this right is set forth in Articles No. 50 and 100 of the currentLaw on Industrial Property.
The Albanian Law On Competition includes a number of Articles that deal with the
regulation of competition (Articles 24 -26) or with prevention of illegal actions in competition with
the purpose of gaining advantages (Articles 37 - 42).
According to point 3 of Article 10bis of  the Paris Convention, the Albanian Law on
Competition foresees the prevention of the actions that intent to create confusion (Article 43 and 27.1
and 27.3); the prevention of the false allegations that intent to discredit the competitorWT/ACC/ALB/29
Page 36
(Articles 42,30.2 and 27.1) and the prevention of false allegations that create a wrong image about the
characteristics of the goods of the competitor (Article 27.2, 5 and 6).
2. Substantive Standards of Protection
(a) Copyright and related rights
Question 70.Could Albania further clarify:- Whether there are any administrative formalities requirements for the enjoyment of
copyright (on page 24 of the Communication from Albania, regarding Article 5 of theBern Convention which provides that rights shall be enjoyed without being subject to
any formalities, Albania comments that no sp ecial provisions are mentioned in the law).
- Whether "free uses of computer programs" (m entioned in the table on  "free uses of
works", page 25 of the Communication) are restricted to back-up copies anddecompilation as set out in Sections 13 and 14 of the Law.
- Under which provisions of the Copyright Law, compilations of data are protected as
required by Article 10 of the TRIPS Agreement (the answer to question 87 in
WT/ACC/ALB/23/Rev.1 does not appear to provide the information requested).
- Whether there are any indications yet of a timetable for the preparation of legislation on
layout designs of integrated circuits.
- Whether there is a timetable for the preparat ion of legislation on border enforcement.
Answer:
The Albanian Law on Copyright foresees no formal administrative requirements for the
enjoyment of copyright. According to Article 51, point b, works will be protected in Albania in
accordance with the international conventions where Albania participates.
According to Article 13 of the Law on Copyrigh t, the legal owner of a computer program is
allowed to make a back-up copy or a compilation of the program without the consent of the author
and without any recompense or reward, in condition that the back-up copy or the decompilation be
necessary for the utilisation of the computer program for the purpose that this program has been
legally purchased, and second, the back-up copy or the decompilation be utilised for archives and ifnecessary be substituted with the original copy legally purchased (in case the copies are lost,
destroyed or made invalid).
According to Article 14 of the Law on Copyright, it is possible to make the reproduction and
translation of the code, without being necessary to have the author’s consent.  This is the case whenthe reproduction or the translation are necessary for accessing the necessary data for the interaction of
a computer program set up independently with other computer programs and this is allowed only upon
the fulfilment of the following conditions:
When this action is licensed or by some other person who is authorised to utilise the program
copy or some other person authorised by the latter.
When the necessary data for interaction have not previously given to the persons mentioned
in point 1.WT/ACC/ALB/29
Page 37
When these actions are limited in those parts of the original program that are indispensable
for the establishment of interacting capacity.
The provisions mentioned above are in full compliance with Article 10:2 of the TRIPS
Agreement.
The draft law on Protection of topographies on integrated circuits is expected to be passed
soon by Parliament.
The Albanian Law on Copyright foresees and gu arantees the protection of computer programs
and databases.
Article 1, point (a) of this Law foresees the protection of written works including computer
programs.  According to Article 2 of the Law, the same protection enjoy the abridgement, summaries
and the transformations of works and databases which are original in the nature of selection and
systematisation.
In addition to this, in Article 5 where the economic author’s rights are foreseen it is stated that
“the author of a work such as a computer program, database or any other which is read by apparatus,
has the exclusive right to allow giving on lease or lending of his work.”
The Albanian Government has done serious efforts in comparing and making compatible the
Albanian Law on Copyright with TRIPS Agreement.  To this purpose has served the preparation of a
draft on the establishment of a package of customs measures to prevent forfeited and pirated goods
that infringe the ownership of intellectual rights.  This project aims at making the Albanian legislation
compatible with Articles from 51 to 60 of the TRIPS Agreement. Article 82:4 in the new CustomsCode sets forth the customs authorities with the request of the bearer of the intellectual right
ownership have the right to prevent goods known as  forfeited or as pirated from free circulation,
export and re-exporting as well as establishing a cancelling regime.  The procedures of exercising this
right are determined in the implementation draft acts of this code.  This procedure is in full
compliance with the special descriptions of the TRIPS Agreement on border measures.  The
Government of Albania shall pass the Dispositions  of Applicability to the Customs Code of the
Republic of Albania within the month of April 1999.
The above-mentioned provisions are in full accordance with Article 10:2 of the TRIPS
Agreement, which covers computer programs and databases (their protection shall be in the same
terms as the protection for artistic works in the Bern Convention).
For related legislation on border enforcement, please refer to Articles 119 and 120 of the
Draft Dispositions of Application of Customs Code, attached to Memorandum on TRIPS Conformity,
(document WT/ACC/ALB/36).
Question 71.
Could Albania provide a copy of the latest copyright laws - Law No.°7564 of 19 May 1992 on
Copyright  and Law No.°7932 of 19 April 1995 amending Law No.°7564).
Answer:
Pending.WT/ACC/ALB/29
Page 38
(b) Trademarks
Question 72.Could Albania further clarify:- Whether Albanian law provides for a rule  according to which the registration of a
trademark confusingly similar to a well-known mark, ex officio  or on request of an
interested party should be refused to be registered or be cancelled (Article 6 bis of the
Paris Convention).
- Whether Albanian law provides for protecti on of trade names (Article 8 of the Paris
Convention).
Answer:
Article 76 of the Law on the Industrial Property refuses to register a trademark when it
infringes the rights of a well-known trademark.  The definition of a well-known trademark as such is
done by the Office of Patents according to the information received by the consumer as well as
information received by the International Bureau of the registration of trademarks in Geneva, the
office of the trademark registration of the Eur opean Community in Alicante-Spain and homologue
offices in Europe and elsewhere, with which the Albanian office of patents keeps regular contacts.
In accordance with Article 8 of the Paris Convention, the Albanian law on the Industrial
Property includes no provision that obliges the registration or the depositing of a commercial name.
Article 18 of the Law On the Provisions that regulates the first part of the Commercial Code sets forth
that within one month from the day of the beginning of a commercial activity, the tradesman shouldannounce his name and should deposit his original signature at the court appointed to keep the
commercial register.
(e) Patents
Question 73.
Could Albania provide further information on:
- Whether a compulsory licence can be granted in Albania, when a patented product is
imported from a WTO country in sufficient quantities to meet local demand (According
to Article 27 of the TRIPS Agreement this would not be possible).
- Albania's intentions concerning the implem entation of the TRIPS rules on enforcement
of intellectual property rights.
- Whether and under what circumstances inventions relating to plants and animals are
excluded from patentability in Albania (Article 27.3 of TRIPS).
Answer:
When a product is imported into Albania, where exists a patent protecting process of
manufacture of the said product, the patentee shall have all the rights with regard to the imported
product, that are accorded to him by the Albanian legislation on industrial property, on the basis of the
process patent with respect to products manufactured in Albania.  In that case, no compulsory licence
can be granted in Albania.WT/ACC/ALB/29
Page 39
Related to this question, a new amendment is being prepared, please refer to Implementation
of the Law on Industrial Property with the TRIPS Agreement, attached to the Memorandum on TRIPS
Conformity (documen t WT/ACC/ALB/36).
The new Customs Code as well as the by law acts passed for its implementation, the Code of
the Civil Procedure and the Penal Code, in separate Articles foresee a strict defence of the interests of
the owners of intellectual property objects.  A packet of by law acts, including the measures that
should be taken at the customs and the enforcement of intellectual property rights, in accordance with
the requirements of TRIPS, has been recently drafted and is expected to be approved by the
Government within April 1999.
Please refer to Articles 119 and 120 of Draft Di spositions of Application of Customs Code,
attached to the Memorandum on TRIPS Conformity.
The new varieties of plants and the new breeds of animals are excluded from the patentability,
when their creation has to do with essential biological processes for their production.  This is not validfor microbiological processes or their by products.
VI. TRADE-RELATED SERVICES REGIME
1. General
Question 74.We appreciate the information provided on Albania's services regime in WT/ACC/ALB/14.
However, given the evolving nature of Albania's services regime, we would appreciate Albania'sreview and any necessary updates of the information in this document, taking account of the
guidelines set out in WT/ACC/5.
We would expect updates regarding the status of legal and/or regulatory regime, market
development and any existing market access or national treatment barriers for all major sectors
listed in W/120 (including financial services;  telecommunication services;  professional and
other business services;  construction services;  wh olesaling and retailing;  audio-visual services)
and covering all four modes of supply:  cross-border;  commercial presence;  consumption
abroad and movement of natural persons.
Could Albania please provide information on any preferential trade agreements covering
services issues it has or is in the process of negotiating?
Answer:
Pending.
3. Market Access and National Treatment
- Horizontal commitments
Question 75.
Are foreigners permitted to own non-agricultural land, i.e., for business/residential, or are there
time and lease restrictions?WT/ACC/ALB/29
Page 40
Answer:
See the Schedule of Services, horizontal commitments, real estate sector
(WT/ACC/SPEC/ALB/5/Rev.2).
Question 76.
Would Albania consider raising the 20 per cent forei gn equity limitation for private businesses,
or scheduling is phase - out?
Answer:
Please refer to the document "Memorandum on the Updated Situation on the privatisation
process in Albania"  (WT/ACC/ALB/28).
Question 77.
How is the selection of operators determined?  Is it a quota or other means?
Answer:
The Government is committed to opening up the telecommunications sector to competition
from private interests.  This commitment is reflec ted in the offer being made to the WTO.  The
Government will adopt also the principles expressed in WTO Reference Paper on Regulatory
Principles.  The following initiatives will be adopted:
Initiative 1 Data communications, including Internet access and VSAT networks, and paging
services are already fully open to competition and further expansion will be encouraged. TRE
(Telecommunications Regulatory Entity has already i ssued 5 licenses for access to Internet and three
licenses for radio paging. These are general licenses issued upon requests, without any restriction.
Initiative 2 While local telephone network operations are already authorised in rural areas,
existing activities are performed outside a licensing framework. Improved operating conditions will
be devised and new rural licenses granted by 2000.
Initiative 3 Further terrestrial mobile telephony operators will be licensed starting from 2000.
Albanian Telecom will receive one licence at privatisation; subsequent licenses will be issued as soon
as market conditions permit
Initiative 4 Urban, long distance and international telephony services will be liberalised by 2003.
Question 78.
Are only "important sectors" limited to a 20 per cent maximum foreign ownership or does this
apply to all sectors?  Please define the "important sectors".
Answer:
Albania has taken commitments for these sub-sectors.  Please refer to the revised Schedule of
Services (WT/ACC/ SPEC/ALB/5/Rev.2).WT/ACC/ALB/29
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Question 79.
Would Albania please reconsider the maximum term of 1 year for foreign temporary stay?  We
would be grateful if Albania could clarify what it means by a "considerable sum" under "Entry
of foreign natural persons".  Would Albani a consider making a commitment on senior
executives, specialists and services sellers?
Answer:
Pending.
- Specific service sector or sub-sector
1. Business services
Question 80.Re. Legal services.  Would Albania please reconsider the modes 1, 3 and 4 restrictions on
foreign lawyers, which does not allow them to practice Law in Albania.  Is any form of foreign
legal consultation permitted in law?  We plac e high priority on access to markets for home-
country, third country and international law.
Answer:
Albania has taken commitments for these sub-sectors.  Please refer to the revised Schedule of
Services (WT/ACC/ SPEC/ALB/5/Rev.2).
Question 81.
The sub-sectors of (b) accounting, (c) taxation, (d ) architectural, (f) integrated engineering, and
(g) urban planning and landscape architectural services have not been addressed.  These are
important sectors to this delegation and we would recommend that Albania provide comment.
Answer:
Albania has taken commitments for these sub-sectors.  Please refer to the revised Schedule of
Services (WT/ACC/ SPEC/ALB/5/Rev.2).
Question 82.
The sectors of B. Computer and Related Services, 5. Rental/leasing services without operators
and 6. Other Business Services have not been addressed.  These are important sectors to this
delegation and we strongly urge Albania to address all these sectors and sub-sectors.
Answer:
Albania has taken commitments for these sub-sectors.  Please refer to the revised Schedule of
Services (WT/ACC/ SPEC/ALB/5/Rev.2).WT/ACC/ALB/29
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2. Communication services
Question 83.Re. We would be grateful if Albania would cons ider making an offer on (b) Courier Services.
Answer:
Albania has taken commitments for these sub-sectors.  Please refer to the revised Schedule of
Services (WT/ACC/ SPEC/ALB/5/Rev.2).
Question 84.
What does Albania mean by the statement in mo de 4 for market access that "a natural person
must be registered as a juridical person"?
Answer:
This note has to do only with public telecommunications services.  To offer the service to a
large community of subscribers, brings some responsibilities such as service quality, service
availability, etc.  This means that to offer such a service, you have to be registered in the Court as
juridical person.
Question 85.
In response to Question 44 of WT/ACC/ALB/3 on whether or not there are ceilings for foreign
investment in any sectors, Albania states in it s answer that there are no ceilings on foreign
investment.  Later, however, in service specific do cuments, Albania states that investment in the
telecom sector is limited to 40 per cent while th e limit in the insurance sector is still being
debated.
- Please confirm what, if any, limits there are on investment in these two sectors.
Answer:
It is foreseen that the Albanian Telecom will hold the monopoly over voice telephony
services (urban, long-distance and international) until the end 2002.  AMC will hold the monopoly
over mobile telephony until year 2000.  AMC and AT are to be privatised (AMC-April 1999, AT-end
1999).  But there is still no one precise percentage of the strategic partner’s shares. (What is decideduntil now is that for AMC the majority of shares will be sold and for AT not less than 30 per cent of
shares will be sold to the strategic investor) (See the draft policy of Telecommunications
development, developed with AERIS consultant company).
Yes there is a limitation on participation of foreign capital in the insurance sector.  It is stated
by Law No. 8081 dated 7 March 1996 “Insurance and Reinsurance Companies” that the level of
foreign participation in a joint-venture company can be up to 40 per cent.  In the meantime, the
foreign company can establish a branch in Albania w ith a participation of 100 per cent foreign capital.WT/ACC/ALB/29
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3. Construction and related engineering services
4. Distribution services
Question 86.
The sectors of 3. Construction and Related Engine ering and 4. Distribution Services are of vital
interest to this delegation and we would be grateful for information on any restrictions to
foreign involvement in these sectors.
Answer:
Albania has taken commitments for these sub-sectors.  Please refer to the revised Schedule of
Services (WT/ACC/ SPEC/ALB/5/Rev.2).
5. Education services
Question 87.In order for foreigners to practice in education services, must they obtain their qualifications
from Albania, or may they practice with foreign qualifications after gaining approval from the
Ministry?  Would Albania please provide further information on this sector.
- Would Albania consider making an offer on cross-border supply of education services?
Answer:
Albania has taken commitments for these sub-sectors.  Please refer to the revised Schedule of
Services (WT/ACC/ SPEC/ALB/5/Rev.2).
6. Environmental services
Question 88.We would be grateful if Albania would make a more comprehensive offer on environmental
services.  We are grateful for the commitments already in the schedule.
Answer:
Albania has taken commitments for these sub-sectors.  Please refer to the revised Schedule of
Services (WT/ACC/ SPEC/ALB/5/Rev.2).
7. Financial services
- Insurance services
Question 89.
Would Albania please reconsider the mode 2 restriction for market access which restricts
external purchasing of insurance for risks to pers on, object or liability situated within Albania.
Answer:
Please refer to the revised Schedule of  Services (WT/ACC/ SPEC/ALB/5/Rev.2).WT/ACC/ALB/29
Page 44
Question 90.
Would Albania please reconsider the mode 3 rest riction for market access which limits foreign
participation in a joint-venture company to no more than 40 per cent.  Is commercial presence
in this sector restricted to joint-ventures?  Do es this restriction apply also to branches?  Would
Albania please consider the condition that a foreign enterprise may only practice within Albania
if it has "exercised those activities for more th an 10 years in the country where the head office is
located"?
Answer:
The insurance market of Albania is not well de veloped.  In order to develop this market, we
do not allow foreign capital in a joint-venture to be more than 40 per cent, but we do allow
commercial presence with 100 per cent foreign capital.
- Banking and other financial services  (not including insurance)
Question 91.
We have concerns about the capital outflow rest rictions for residents.  Could Albania clarify
what is involved in obtainin g approval for capital outflows?
Answer:
According to Article 5 of the existing Foreign Exchange Market Regulation residents and non
residents shall obtain prior written approval of the Bank of Albania for capital transfers.  For the cases
of capital outflows written below there is not necessary to obtain the approval of the Bank of Albania:
1. Outflow of capital transfers equalling the amount of the previous inflow of capital plus profits
derived from:
(a) returns;
(b) compensations;
(c) payments arising out of an investment dispute;(d) loan repayments according to loan amortisation schedule;
(e) proceeds from the sale or liquidation of any or all part of an investment, and
(f) the return of shareholders equity resulting fr om the diminution of capital in accordance with
Albanian legislation.
2. Outflows of capital transfers representing the amount of profits derived from the non residents
deposits placed with Albanian resident banks.
3. Outflow of capital representing the wealth of the Albanian emigrants leaving the country
forever.
Question 92.
Could Albania confirm that the draft law on "Investment Funds" will remove the requirement
for the underlying funds to be 80 per cent Albanian - owned?WT/ACC/ALB/29
Page 45
Answer:
The restriction of "the underlying funds need to have 50 per cent of their capital owned by
Albanian legal or natural persons in order to get a licence" is not included anymore in the new draft
law.
Question 93.
Could Albania explain the reasons for the restrictions on market access under mode 2 for
(a) Acceptance of deposits?
Would Albania please clarify the mode 2 restrictions in market access for (b) Lending of all
types?
Albania has left many of the financial sub-sectors unbound "as these instruments are not yet
developed".  When will these instruments be developed?
Answer:
Albania has taken commitments for these sub-sectors.  Please refer to the revised Schedule of
Services (WT/ACC/ SPEC/ALB/5/Rev.2).
Question 94.
Re. (j) Settlement and clearing services of financial assets. – Mode 3 for market access is
restricted "for the time being" to the Bank of  Albania only.  Would Albania please provide
some indication of time-frame?
Answer:
The Bank of Albania will continue to be monopoly supplier of this service at least for 5 more
years.
Question 95.
In response to Question 56 of WT/ACC/ALB/3 on the two respects in which foreign banks do
not receive national treatment, minimum capita l requirements and the prohibition on foreign
banks accepting deposits from natural or juridical Albanian persons, Albania stated that there
was a proposed amendment that would lift the prohibition on foreign bank branches engagingin acceptance of deposits from natural and juridical Albanian persons.  What is the status of
that amendment?
Are there any financial services as defined in paragraph 5(a)(v) through (xvi) of the Annex on
Financial Services which are not listed in your schedule but currently provided by the privatesector in Albania?  Are any such services provided by State-owned institutions alone or in
competition with privately-owned financial institutions in Albania?
What are the banking activities that can be provided by banks in Albania?  Can banks in
Albania involve themselves in securities or  other non-traditional banking activities?
Are there any measures that limit in any way th e ability of a non-resident financial service
provider to provide cross-border into the territory  of Albania:  (i) advisory and other auxiliary
financial services;  and (ii) the provisions and transfer of financial information and financialWT/ACC/ALB/29
Page 46
data processing (as defined in paragraph 5(a)(xv) and (xvi) of the Annex on Financial Services)?
If so, please describe the measures that apply.
With reference to financial services as defined in paragraph 5(a)(v) through (xvi) of the Annex
on Financial Services:
- Are there any financial services that would limit in any way the ability of residents to
purchase financial services in the territory  of another party, including licences required
for foreign currency transactions?
- Are there any measures that would apply to financial services as defined in
paragraph 5(a)(v) through (xvi) of the Annex on Financial Services, that would limit theability of a non-resident financial service provider to establish a commercial presence in
Albania as a directly-owned branch, an agency, a representative office, a wholly-owned
subsidiary, either through de novo  investment or through acquisition of existing
enterprises to engage in any of the services that are not listed in Albania's schedule?
- Would you confirm that foreign-owned financ ial service providers that are established
in Albania will be able to expand operations through additional locations or branch
operations on the same terms and conditions as domestic financial institutions in like
circumstances?
Albania's schedule contains limitations for different capital requirements for foreign-owned
banks and domestic banks.
- Would Albania explain the reasons for the different requirements?
Are there any measures that would prevent a foreign-owned financial service provider from
becoming a member of any self-regulatory bod y, securities or futures exchange or market,
clearing agency or other organisation or association, now or in the future, on the same terms
and conditions as a domestic institution in like circumstances?
Please describe the status of development of private and government securities markets in
Albania.  Are there any restrictions that would limit participation in the government or privatesecurities markets by foreign-owned financial institutions in Albania?
Are there any limitations, incl uding on foreign currency, that apply to a foreign resident's
participation in private or government securities markets?
Are there any monopoly suppliers of financial services?
Answer:
The Bank of Albania is the monopoly supplier offering the settlement and clearing services of
financial assets.  For the other questions please refer to the answers of the documents
WT/ACC/ALB/23 and WT/ACC/ALB/23/Add.1.
9. Tourism services
Question 96.
If a permit to develop an area is rejected by the Tourism Development Committee, is there a
mechanism for appeal?  Does the committee make public its reasons for rejecting proposals?WT/ACC/ALB/29
Page 47
Answer:
According to Law No. 7665 dated 21 January 1993 “On Tourism Promoted Development
Zones”, the Council of Policies for Development of Tourism declares the preliminary decisionregarding to approval or rejection of the request made by a juridical or natural person for to get a
licence for tourist activity.  The interested parties have the right to present to the Council its proposals
or its objections for this decision within 90 days.  The Council must definitely decide within 60 days
from the date of presenting the proposals or objections.  The decision of the Council will be awarded
by the Chairman of the Committee for Development of Tourism.  The Chairman of the Committee has
the right to return the decision for re-examination, if this decision is based on the law.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Bilateral or Plurilateral Agreements Relating to Foreign Trade in Goods and Trade in
Services
Question 97.Are there any new developments?
Answer:
The bilateral agreement between Albania and Canada is in the process of being signed.
__________