WORLD TRADE G/STR/N/4
22April 1998
ORGANIZATION(98-1624)
Working Party on
State Trading Enterprises
STATE TRADING
Notifications Pursuant toArticle XVII:4(a) oftheGATT 1994 and
Paragraph 1oftheUnderstanding ontheInterpretation ofArticle XVII
1. Pursuant toArticle XVII:4(a) oftheGATT 1994 andParagraph 1oftheUnderstanding on
theInterpretation ofArticle XVII, Members shallnotify theirstatetrading enterprises totheCouncil
forTrade inGoods inaccordance withthefollowing working definition ofsuchenterprises:
"Governmental andnon-governmental enterprises, including marketing boards, which
have been granted exclusive orspecial rights orprivileges. including statutory or
constitutional powers, intheexercise ofwhich theyinfluence through theirpurchases
orsalesthelevelordirection ofimports orexports."
2. Members arerequired tosubmit every thirdyearnewandfullnotifications onstatetrading
andbring these notifications uptodateintheintervening years. Members aretherefore invited to
submit for1998 newandfullresponses tothequestionnaire onstatetrading (G/STR/3) reproduced
intheAnnex tothisdocument. Subsequent notifications for1999and2000willbeupdating notifications
covering changes tothenewandfullnotification for1998.
3. Members 'attention isdrawn tothefactthatthequestionnaire annexed tothisdocument isa
revision1ofthe1960 questionnaire previously usedasthebasis forthenotifications onstatetrading.
TheCouncil forTrade inGoods agreed thatthiswould bethebasis forthe1998 newandfull
notifications (G/C/M/33).
4. Thedeadline forsubmission ofthe1998 newandfullnotifications is30September 1998.
5. Responses totheabove request willbeissued, asreceived, intheG/STR/N/4 series under
therespective country codes.
1Approved bytheCouncil forTrade inGoods on21April 1998 (G/C/M/33).G/STR/N/4
Page2
ANNEX
QUESTIONNAIRE2ONSTATE TRADING
Name ofMember
I. Enumeration ofState Trading Enterprises
A. Identification ofstatetrading enterprises.
B. Description ofproducts affected (including tariff itemnumber(s) encompassed in
product description).
II. Reason andPurpose
A. Reason orpurpose forestablishing and/or maintaining statetrading enterprise.
B. Summary oflegal basis forgranting therelevant exclusive orspecial rights or
privileges, including legal provisions andsummary ofstatutory orconstitutional
powers.
III. Description oftheFunctioning oftheState Trading Enterprise
A. Summary statement providing overview ofoperations ofthestatetrading
enterprise.
B. Specification ofexclusive orspecial rights orprivileges enjoyed bythestate
trading enterprise.
C. Typeofentities other thanthestatetrading enterprise thatareallowed toengage
inimportation/exportation andconditions forparticipation.
D. Howimport/export levels areestablished bythestatetrading enterprise.
E. Howexport prices aredetermined.
F. Howtheresale prices ofimported products aredetermined.
G. Whether long-term contracts arenegotiated bythestatetrading enterprise.
Whether thestatetrading enterprise isusedtofulfilcontractual obligations entered
intobythegovernment.
H. Brief description ofmarket structure.
IV. Statistical Information (seeattached Tables I-III)
V. Reason whynoforeign trade hastaken place (asappropriate)
VI. Additional Information (asappropriate)
2Thisquestionnaire istobefilled outaccording totheGuidelines contained onpages 5-7.G/STR/N/4
Page3TABLE I
STATE TRADING: NAME OFSTATE TRADING ENTERPRISE
STATISTICAL INFORMATION, IMPORTS
Description ofproduct(s)
(including HSnumber(s))Total quantity imported1Quantity imported by
statetrading enterprise1Average import price Average representative
domestic sales priceMark-up2National production
1 2 3 4 5 6 7
1Incases where noimports have taken place under columns 2or3,provide anexplanation under Section Vofthisquestionnaire.
2Members mayreport either under columns 4and5orunder column 6.G/STR/N/4
Page4TABLE II
STATE TRADING: NAME OFSTATE TRADING ENTERPRISE
STATISTICAL INFORMATION, EXPORTS
Description ofproduct(s)
(including HSnumber(s))Total quantity exported1Quantity exported by
statetrading enterprise1Average procurement
price2Average representative
domestic sales priceAverage export price National production
1 2 3 4 5 6 7
1Incases where noexports have taken place under columns 2or3,provide anexplanation under Section Vofthisquestionnaire.
2Incases where theinitial procurement price isaugmented byother payments, additional payments should alsobereported.G/STR/N/4
Page5TABLE III
STATE TRADING: NAME OFSTATE TRADING ENTERPRISE
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description ofproduct(s)
(including HSnumber(s))Domestic purchases by
statetrading enterpriseNational production Domestic salesby
statetrading enterpriseNational consumption
1 2 3 4 5G/STR/N/4
Page6
GUIDELINES FOR COMPLETING THE QUESTIONNAIRE
Thefollowing information should beprovided separately foreachstatetrading enterprise notified.
SECTION I-tobesubmitted infullevery three years andupdated annually.
Objective: Identify statetrading enterprises atnational andsub-national levels andthescope ofproducts
covered.
A. Identification ofstatetrading enterprise: Name oftheentity granted exclusive orspecial rights
orprivileges.2
B. Description ofproduct(s): Products forwhich eachidentified statetrading enterprise has
exclusive orspecial rights orprivileges. Include HStariff number(s), atappropriate levelof
specificity, corresponding totheproducts under theauthority ofthestatetrading enterprise
concerned.
SECTION II-tobesubmitted infullevery three years andupdated annually.
Objective: State reason orpurpose forestablishing and/or maintaining thestatetrading enterprise.
Identify andsummarize legalprovisions.
A. Reason orpurpose: Explanation ofreason forgranting exclusive orspecial rights orprivileges
tothestatetrading enterprise.
B. Legal authority: Identify andbriefly summarize authority which grants exclusive orspecial
rights orprivileges. Citeconstitutional, legislative, and/or regulatory provisions, ifany.
SECTION III-tobesubmitted infullevery three years andupdated annually.
Objective: Describe functioning ofthestatetrading enterprise.
A. Summary overview ofoperations ofthestatetrading enterprise. Include, where possible,
references totheillustrative listofactivities ofstatetrading enterprises.
B. Specify allexclusive orspecial rights orprivileges granted totheSTEaswellasanyother
supportorassistanceprovidedbythegovernment.Commentshouldinclude,butnotnecessarily
berestricted to,descriptions ofthefollowing: (i)monopoly importer; (ii)single deskseller;
(iii)statutory power tocontrol imports orexports evenifnotexercised; (iv)responsibility
forissuing import/export licences; (v)responsibility foradministering tariff ratequotas;
(vi)recipient ofspecial financing (including commercial orconcessional credit orcredit
guarantees); (vii)recipient oftaxadvantages; (viii) recipient ofsubsidies; (ix)recipient of
off-budget support orother support provided bythegovernment oritsinstrumentalities;
(x)preferential access toforeign exchange.
Thedescriptions should include, where possible, references totheillustrative listof
relationships between governments andstatetrading enterprises.
2A"state trading enterprise" isdefined according toArticle XVII ofGATT 1994 andtheInterpretative Notes thereto,
andtheUnderstanding ontheInterpretation ofArticle XVII ofGATT 1994.G/STR/N/4
Page7
C. Indication ofother types ofentities thatparticipate inthesame activities asthestatetrading
enterprise, suchasprivate traders thatimport/export commodities alsoimported/exported by
thestatetrading enterprise. Description ofconditions under which theyareallowed toengage
inactivities incompetition withstatetrading enterprises -e.g.,(i)equal terms foralltrade,
(ii)equaltermsforspecifiedquantity,(iii)participationsubjecttospecialrestrictions/guidelines.
D. Specify criteria/considerations taken intoaccount bythestatetrading enterprise indetermining
thequantity ofimports orexports itwillundertake -e.g.,(i)minimum purchase commitments,
(ii)tariff ratequota administration procedures, (iii)domestic supply/price situation,
(iv)international pricesituation, (v)export performance requirements, (vi)export restrictions,
(vii)commercial considerations (e.g., marginal pricerelative tomarginal cost,market demand).
Include adescription ofanydirect orindirect government involvement inthedetermination.
E. How thestatetrading enterprise determines itsexport price -e.g.,(i)inrelation toprices
inother markets, (ii)through tendering. Include information ontheuseofrevenue generated.
F. When thestatetrading enterprise imports, howitdetermines thepriceatwhich itsellsproducts
todomestic wholesalers, retailers, orend-users. Include information onservice feesand
mark-ups, aswellasonuseofrevenue generated.
G. Whether andhowlong-term contracts arenegotiated bythestatetrading enterprise. Include
information onanylong-term contracts negotiated during thereporting period. Whether and
howthestatetrading enterprise isusedtofulfil contractual obligations entered intobythe
government.
H. Brief description ofmarket structure -e.g.,domestic market structure, nature ofcompetition,
relation tointernational market, typeofimport protection, etc.
SECTION IV-tobesubmitted annually onacalendar, fiscal ormarketing yearbasis. Tables should
cover themost recent three years forwhich dataisavailable. Price datarequired forstandardized
products only. Where price dataexpressed inother thanUS$, indicate applicable exchange rate.
Table I-Objective: Provide import information, byproduct.
1. Description ofproduct(s): Product description (e.g,wheat/flour) including HSnumber.
2. Total imports: Total quantity ofimports oftheproduct.
3. Quantityimportedbystatetradingenterprise:Quantityofimportsoftheproductbystatetrading
enterprise.
4. Average import price: Total costofimports bythestatetrading enterprise (c.i.f. basis) divided
bythetotalquantity imported bythestatetrading enterprise.
5. Average representative domestic salesprice: Average domestic wholesale market priceduring
theyearinquestion.
6. Mark-up: Average difference between theimport priceandresale price. Members maychoose
toreport theaverage mark-up instead oftheaverage import priceandtheaverage representative
domestic price under columns 4and5.
7. National Production: Quantity ofnational production attheappropriate levelofspecificity.G/STR/N/4
Page8
Table II-Objective: Provide export information, byproduct.
1. Description ofproduct(s): Product description (e.g,wheat/flour) including HSnumber.
2. Total quantity exported: Total quantity ofexports oftheproduct.
3. Quantity exported bystatetrading enterprise: Quantity ofexports oftheproduct bythestate
trading enterprise.
4. Average procurement price: Average price paidbystatetrading enterprise toprocure the
product. Incases where theinitial procurement price issubsequently augmented byother
payments, suchaspoolreturns orgovernment subsidies, those additional payments should
alsobereported.
5. Average representative domestic salesprice: Average domestic wholesale market priceduring
theyearinquestion.
6. Average export price: Average salespriceofexports (f.o.b. basis) bythestatetrading enterprise
(total value divided bytotalquantity).
7. National Production: Quantity ofnational production attheappropriate levelofspecificity.
Table III-Objective: Provide information ondomestic commercial activities where products are
internationally traded bythestatetrading enterprise.
1. Description ofproduct(s): Product description (e.g,wheat/flour) including HSnumber
2. Domestic purchases bystatetrading enterprise: Quantity purchased bythestatetrading
enterprise from domestic production.
3. National Production: Quantity ofnational production attheappropriate levelofspecificity.
4. Domestic sales bystatetrading enterprise: Quantity soldbythestatetrading enterprise to
domestic users.
5. National Consumption: Quantity ofnational consumption attheappropriate levelofspecificity.
SECTION V-Objective: Explanation ofwhynotrade hastaken place.
Intheevent notrade hastaken place foraproduct covered bytheauthority ofastatetrading
enterprise, explain why.
SECTION VI-Objective: Provision ofadditional information.
Countries mayprovide anyadditional information thatmaybeappropriate.
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