RESTRICTED
WORLD TRADE WT/ACC/MOL/2
23September 1996
ORGANIZATION(96-3751)
Original: English
ACCESSION OFTHE REPUBLIC OFMOLDOVA
Memorandum onForeign Trade Régime
Inacommunication dated 12December 1995 (WT/ACC/MOL/1), theGovernment ofMoldova
applied foraccession under Article XIIoftheAgreement Establishing theWorld Trade Organization
(WTO).
Having regard totheDecision adopted bytheGeneral Council on31January 1995, theexisting
Working Party ontheAccession ofMoldova totheGATT 1947continued asaWTO Working Party
withthefollowing terms ofreference: "Toexamine theapplication oftheGovernment ofMoldova
toaccede totheWorld Trade Organization under Article XII,andtosubmit totheGeneral Council
recommendations which mayinclude adraftProtocol ofAccession." Themembership isopentoall
WTO Members indicating theirwishtoserve ontheWorking Party.
Inaccordance withtheestablished procedures (WT/ACC/1), theSecretariat iscirculating the
attached Memorandum onForeign Trade Régime received from theGovernment oftheRepublic of
Moldova. WTO Members wishing tosubmit questions ontheMemorandum areinvited todosoby
8November 1996 fortransmission totheauthorities oftheRepublic ofMoldova.
_______________WT/ACC/MOL/2
Page2
Table ofContents
Item Page No.
INTRODUCTION
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
II.1 TheEconomy ofMoldova 4
II.1(a) General description 4
II.1(b) Current economic situation ofMoldova 5
II.2 Economic Policies 6
II.2(a) Main directions ofcurrent economic policies 6
II.2(b) Monetary andfiscal policies 8
II.2(c) Foreign exchange andpayments system, IMF
relations, foreign exchange regulations 10
II.2(d) Foreign anddomestic investment policies inMoldova 11
II.2(e) Competition policies 12
II.3 Moldova 'sForeign Trade inGoods andServices 12
II.4 Domestic Trade inServices Including Value and
Composition ofForeign Direct Investment 12
II.5 Information onFinancial Movements Related to
National Working Abroad, Remittances etc. 13
II.6 Information onGrowth inTrade inGoods and
Services andForecast 13
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE IN
SERVICES
III.1 Powers oftheExecutive, theLegislature andtheJudiciary 13
III.2 Government, Entities Responsible forMaking and
Implement Policies Affecting Foreign Trade 14
III.3 Division ofAuthority Between Central andSub-central
Governments 14
III.4 Programmes orPlans toChange theRegulatory Regime 15
III.5 Laws andLegal Acts 15
III.6 Description ofJudicial, Arbitrage ofAdministrative Tribunals
orProcedures, ifany 15
IV POLICIES AFFECTING TRADE INGOODS
IV.1 Import Regulation 15
IV.2 Export Regulation 18
IV.3 Internal Policies ofMoldova Affecting Foreign Trade inGoods 19
IV.4 Policies Affecting Foreign Trade inAgricultural Products 21
IV.5 Policies Affecting Foreign Trade inOther Sectors 22
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME
V.1 General 22
V.2 Substantive Standards ofProtection, Including Procedures for
theAcquisition andmaintenance ofIntellectual Property Rights 23
V.3 Measures toControl Abuse ofIntellectual Property Rights 28
V.4 Enforcement 28WT/ACC/MOL/2
Page3
V.5 Laws, Decrees andOther Legislative Acts 29
V.6 Statistical Data 30
VI. TRADE-RELATED SERVICES REGIME
VI.1 General 30
VI.2 Policies Affecting Trade inServices 31
VI.2.1 Description ofspecific measures affecting trade inMoldova 's
main service sectors 31
VI.2.2 Description ofgeneral provisions regarding trade inservices 32
VI.3 Market Access andNational Treatment 34
VI.4 Most-Favoured-Nation Treatment 34
VII INSTITUTIONAL BASE FOR MOLDOVA 'STRADE AND
ECONOMIC RELATIONS WITH THIRD COUNTRIES
VII.1 Bilateral ofMultilateral Agreements onForeign Trade inGoods/
services 35
VII.2 Economic Integration, Customs Unions, FreeTrade Areas 35
VII.3 Labour Market Integration Agreements 37
VII.4 Multilateral Economic Co-operation, Membership oftheMultilateral
Economic Organisations, Trade-related Programmes ofOther
Multilateral Organisations 37
Annex 1 Main Economic Indicators 38
Annex 2 ListofLaws andLegal Acts 45
Annex 3 Information onImport Licensing Procedures 48
Annex 3a Goods Subject toLicensing 51
Annex 3b Good Subject toRegistration Upon Exportatin 52
Annex 4 Information onImplementation andAdministration ofthe
Customs Valuation Agreement 53
Annex 5 Information onTechnical Barriers toTrade 55
Annex 6 Information onState-trading 56
Annex 7 Foreign Trade Agreements 57WT/ACC/MOL/2
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1.INTRODUCTION
ThisMemorandum issubmitted aspartofthedocumentation required forMoldova 'saccession
totheWorld Trade Organisation (WTO).
Thestrategic objective oftheeconomic policy ofMoldova isatransition toamarket economy
andthecountry 'sintegration intotheinternational economic community.
TheConstitution ofMoldova adopted bytheParliament inJuly1994 states: "The economy
ofthecountry ismarket andsociety oriented, based onprivate andpublic property andfreecompetition.
Article Istates: Moldova isdemocratic stateregulated byLaw. Article 9ensures private property
rights andArticle 126defines thegeneral characteristics oftheeconomy associally orientated and
based onprivate andpublic property rights andfreemarket principles".
Anelement inMoldova 'sprogramme ofeconomic reforms hasbeenthereorganisation ofthe
foreign tradesector. Successful completion ofthereforms depends largely onthissector 'sdevelopment.
Thisinturnisdirectly linked totheparticipation ofMoldova inthemultilateral trading system. The
Government ofMoldova isthusstrongly committed toachieving thecountry 'sintegration intotheworld
economy through joining theWTO, andtothisendisready tomake thechanges required tobring
domestic legislation andpractices intocompliance withtheWTO 'sprovisions.
TheMemorandum presents detailed information onMoldova 'strade regime, andfollows the
outline laiddown intheWTO document WT/ACC/1, "Accession totheWorld Trade Organisation:
Procedures forNegotiations under Article XII". Itdescribes existing trade patterns, thecurrent legal
andinstitutional organisation offoreign trade andalsoprovides basic information ontheeconomic
system andthereform process, anditaddresses trade-related matters. Because ofthetransformation
process, many trade-related laws, procedures andpractices havealready beenestablished andsome
arestillbeing developed. Thepresent Memorandum reflects thelegalframework andtrade regime
asof1June1996 andtotheextent possible, theMemorandum indicates where further changes are
being considered, although insome cases itisnotyetpossible toindicate theform thatthechanges
willtake. Ineachcase, however, Moldova willseektomake thenewlawsandpractices conform
withWTO rules, andwillkeeptheWorking Party informed ofdevelopments.
Adetermined effort hasbeenmade toprovide statistical andother material asindicated inthe
outline format inWT/ACC/1. However, some ofthestatistics arenotatpresent available, particularly
asregards trade inservices andpublic procurement.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. TheEconomy ofMoldova
(a)General description
Moldova isaland-locked country located inthesouth-eastern partofEurope. Ithasatotal
areaof33,700 sq.kmandincludes almost alltheterritory between therivers PrutandNistru, aswell
asanarrow areaalong theleftsideoftheNistru river. Thecountry borders Romania toitswest,
while Ukraine liestoitsnorth, eastandsouth.
Thetotalpopulation is4.3million people, representing anaverage density of129persq.km.
Themajor cities ofMoldova include thecapital Chisinau witharound 656,000 people. Thepopulation
distribution byrural andurban isaccordingly 53%and47%.WT/ACC/MOL/2
Page5
Moldova isacountry intransition whose economy isundergoing aprocess ofstructural
adjustment inorder tocorrect anexcessive dependence onprimary production. Inarelatively short
period oftimeabasic framework ofamarket economy hasbeenestablished andmacro-economic
stabilisation achieved. Inflation hasbeenbrought down toamonthly rateof1.1%inApril 1996from
32%inFebruary 1993. Thebudget deficit in1995 amounted to4.9% ofGDP. Theexchange rate
oftheLei,introduced in1993, hasremained stable atapproximately 4.5LeitotheUSdollar since
May1995. Interest rates(rateatwhich thecentral bankprovides credit tocommercial banks through
credit auctions) stood at19%inApril 1996.
In1995thetotalMoldovan Gross Domestic Product (GDP) incurrent prices wasapproximately
MDL 7.6billion (about USD1.7billion). Theestimated GDPpercapita wasLei1,759 in1995(about
USD 392). Agriculture accounts forapproximately 42%ofGDP, industry for32%, more thanhalf
ofwhichrepresentsagroprocessingindustry,theremainderbeingservices.Thedominanceofagriculture
stems fromMoldova 'snatural endowment: abundant labour resources, amoderate climate andfertile
"black soils" which cover 80%ofallland. Fruits andvegetables, tobacco, grapes, winter wheat, maize,
sugarbeet andgrain-fed livestock areamong themost important products. Thefollowing branches
aredominant inagricultural processing: thecanning industry, wine-making, meatandmilkprocessing,
tobacco, sugar, oilsandfatsproduction, confectionery andbakery, production ofessential oilsand
perfume making.
Non-agroprocessing industry consists ofmechanical engineering andmachinery (8.7% of
industrial production) andproduces tractors tofacilitate fieldoperations invineyards andsugar beet
plantations, refrigeration vehicles, harvesters andfruitandvegetable pickers, food-grading equipment,
andappliances forcattle-breeding. 6%islightindustry, 3%construction materials industry and18%
power engineering
Productionofcraftproducts,basedonnationaltraditionsandculture,includeshand-madecarpets,
decorative towels, national costumes, ceramics, wood carvings andleather goods.
There areapproximately 80,000 economic agents (soleproprietorships, joint-stock companies,
limited liabilities companies, collective property enterprises andmixed capital enterprises), themajority
ofwhich emerged onlyduring thelasttwotothree years. Forenergy, thecountry depends almost
entirely onimports.
(b)Current economic situation ofMoldova
Moldova hasfaced significant economic difficulties since itsindependence in1991. This
evolution isreflected inthemainmacro-economic indicator fortheRepublic -Gross Domestic Product
(GDP) which dropped bynearly 60%inthefollowing three years.
Theagricultural sector hasbeenstrongly affected bythenation 'seconomic difficulties, aswell
asbyuncontrollable environmental conditions. In1993, although Moldova 'sagricultural harvest was
adequate,aconsiderableportionremaineduncollectedandunprocessedduetolackoffuel,transportation
andfinancial resources. Inthesummer of1994, astream ofnatural disasters, including adrought,
followed byahurricane, followed byaflood caused evengreater losses thanthose experienced inthe
previous year. Thedevastating flooding inAugust 1994 alone brought about losses totalling
USD 220million, which exceeded theamount ofMoldova 'sannual statebudget. Food andcrop
processing hasalsobeenconfronted witheconomic difficulties, resulting inaproduction decline of
22%ascompared totheprevious year.WT/ACC/MOL/2
Page6
TheRepublic 'sscarcity ofrawmaterials andenergy resources negatively affects theproductivity
oftheindustrial sector. From theRepublic 's262production enterprises, 60%experienced production
declines. Areduction intheproduction ofconsumer goods, equal toLei140million, wasalso
experienced. Overall in1993, many industrial enterprises operated atlevels 50%below theirfull
potential.
In1994, despite some economic progress, suchasastable national currency andarelatively
lowrateofinflation, serious constraints onproduction remained prevalent. Industrial output decreased
by33.5% compared to1993. In1995 itdecreased afurther 6%. However, industrial output inthe
firstfourmonths of1996 was6.2% above thesame period 1995.
Thedecline inproduction hasnegatively influenced thebudgetary capacity oftheMoldovan
Government toaddress social andother issues. InNovember 1994 budget arrears reached alevelof
USD 70million. Itisestimated thatbudget arrears in1995 amounted toUSD 82.5million. Asa
result sizeable delays existinpayments ofwages, pensions andother allocations. Theconsolidated
budget deficit asaproportion ofGDP decreased from 6.2% in1993 to4.8% in1994 and4.9% in
1995. Itisimportant toemphasise thattheavailable GDPfigures refertothewhole ofMoldova, while
theconsolidated budget excludes theTransnistria region.
2. Economic Policies
(a)Main directions ofcurrent economic policies
Initstransition toamarket economy Moldova 'spriorities are:
- theconsolidation ofthepolitical andeconomic sovereignty ofthecountry;
- theruleoflawguaranteeing therights andfreedom ofcitizens;
- therecoveryoftheeconomythroughreform,restructuring,privatisation,therationalorganisation
ofsocial relations, andtheprovision totowns anddistricts ofmunicipal property andthefiscal
basis required forself-administration andself-support;
- thecreation ofconditions inwhich living standards canimprove byoffering every citizen the
opportunity toprovide forthewellbeing ofhisfamily andbypublic support forthelowest
strata ofthepopulation through themaintenance offreemedical assistance andeducation and
thedevelopment ofscience andculture;
- theintegration ofMoldova intotheinternational economic community byjoining theWTO
andthereby creating theconditions forexpanding foreign trade.
Inaddition tothese priorities, which havebeendetermined fortheeconomy asawhole, the
following sectoral priorities havebeenset:
Agriculture -improvement ofthequality ofMoldova 'smainagricultural products; higher efficiency
through encouragement ofprivate property andentrepreneurship; development ofecological agriculture;
Industry -production ofspare parts, machines andtechnological equipment forthefoodindustry;
productionofmedicalequipmentandinstruments,pharmaceuticalproducts,basedonlocalrawmaterials
andother localinputs;
Energy -production ofequipment withahighlevelofenergy efficiency, theupdating oftheexisting
productivecapacities,reconstructionandtechnicalupdatingoftheoilandgasstoragecapacities,scientific
andtechnical research inorder toraise theefficiency ofenergy equipment; theutilisation ofnon-
traditional energy sources;WT/ACC/MOL/2
Page7
Processing industry -improvement ofthestructure andtechnical updating oftheprocessing industry,
priority development ofthebranches andenterprises which deliver production toexport, foundation
inco-operation withforeign partners offood-stuff andpackage production enterprises competitive on
external markets;
Construction andother infrastructure investments -exploration andexploitation ofalllocalresources,
development ofconstruction materials industry;
Transportation, Informatics andTelecommunication -electrification ofrailway transport, creation
ofamodern electrical locomotives parkforthetransportation ofmerchandises andpassengers, technical
updating oftheexisting telecommunication networks andtheiradaptation tothenewsystems, building
ofthefirstoptical fibrecable thoroughfare "South-North" Chisinau-Cahul-Balti-Briceni, extension of
services provided topopulation andeconomic agents.
From thebeginning ofthereform process, about 500lawsandregulations havebeenadopted
tobuild thelegalframework foramarket economy. Thishasnowlargely beenachieved. Thesocial
andeconomic restructuring hasmade great progress andhasensured:
- privatisation ofstateproperty anddemonopolisation;
- implementation ofmonetary, banking andfiscal reforms;
- development andstimulation ofbusiness undertakings;
- production restructuring andrestructuring ofthefinancial sector;
- theliberalisation ofprices.
Privatisation ofstateproperty isakeycomponent ofeconomic reform asstipulated inthe
Privatisation Actadopted in1991, theActgives Moldovans therighttoacquire shares informer state
property. TheycanusetheirNational Patrimonial Bonds (NPBs), akindofvoucher, topurchase shares
inallkinds ofenterprises andtobuyprivatised homes.
AllMoldovans areentitled toNPBs. Theparvalue depends upon thelength ofacitizen 's
work history inthecountry. NPBs maynotbetraded forcash. Employees ofanenterprise tobe
privatised may, asarule,purchase upto20%oftheenterprises 'shares atparvalue. After astart
inSeptember 1993 thewhole population hadreceived itsNPBs byOctober 1995.
Twotypes ofsalesofstateassets were foreseen:
a. Open public auctions forsmall enterprises suchasrestaurants, shops andpublic service centres.
b. National"SubscriptionforShares"auctions,forlargeandmedium-sizeenterprises.Tofacilitate
these auctions 115bidcollection centres were setupthroughout Moldova.
Payment wasmade either inNPBs orincash. Forthesaleofenterprises ofaspecial character
orofstrategic importance, suchasthetobacco manufacturer, international tenders wereorganised and
arestillbeing held.
Thefirstprivatisation programme wasimplemented in1993and1994. Thesecond programme
started inMay1995 andcontinues untiltheendof1996. Atfirstimplementation wasslowed bya
shortage ofqualified personnel, lateenactment ofthedetailed regulations anddelays inthedistribution
ofNPBs.
ByJanuary 1996, 2278enterprises hadbeenprivatised under thefirstprivatisation programme.
Thesecond programme ofprivatisation ofstateproperty hasthefollowing objectives:
- tocomplete themass privatisation forNPBs andexpand privatisation forcash;
- toencourage localandforeign investors toinvest in,helprestructure andrationalise privatized
enterprises;WT/ACC/MOL/2
Page8
- tointensify therecourse totenders andother public offers;
- tocreate additional taxandother incentives fortheprivatisation ofenterprises andtheir
transformation intocompetitive economic entities;
- toinclude theprivatisation oflandheldbyenterprises.
Enterprises tobeprivatised under thesecond programme aresubdivided into:
- 800enterprisestobesoldsolelyagainstNPBs,includingagro-industry,industry,transportation,
roadconstruction andmaintenance, pharmaceutical andtrade entities;
- 185enterprises tobesoldsolely forcash, including shops, restaurants, hotels andgas-filling
stations and105unfinished constructions andbuildings alsotobesoldsolely forcash;
- 400enterprises tobesoldforbothNPBs andcash.
ThePrivatisationProgrammefor1995-1996alsoincludespost-privatisationactivities.Measures
relating totherestructuring ofprivatised enterprises andthemobilisation offoreign investment are
alsotobeundertaken. Anewindependent Agency forAssistance toEnterprises inRestructuring has
beenestablished, which isresponsible fortechnical assistance co-ordination andenterprise restructuring.
Privatisation ofagricultural land
Under thefirststageofagricultural reform thesizeofhousehold plotswasraised upto0.7RA
andthetenure changed fromuserighttoownership. These transfers proceeded slowly butaccelerated
in1995. ByApril 11996, 85%ofclaimants hadbeenissued withcertificates forlandownership.
(b)Monetary andfiscal policies
Inthelastthree years, theMoldovan Government andtheNational Bank havetaken vigorous
stabilisation measures toimprove themonetary situation andtobalance thebudget. After several years
ofhighinflation andlargefiscal deficits, 1994marked theturning point inachieving macro-economic
stability inMoldova.
TheNational Bank ofMoldova isanindependent central bank. Itsmonetary policy pursues
twoobjectives:
a. exchange ratestability
b. reduction ofinflation
Themoney supply (netcredit totheGovernment pluscredit tocommercial banks) hasbeen
more orlessconstant since January 1995. Interest rateshavebeenfalling steadily. Realinterest rates
(thecentral banks refinancing rateminus therateofinflation) turned negative when inflation picked
upinthelatter halfof1995.
Credit tocommercial banks isprovided through credit auctions. Itisenvisaged toeventually
replace these withopenmarket operations. ALombard facility alsoexists, butasinterest ratesfor
Lombard credits areveryhighitisnotused.
Themainobjective ofMoldova 'sfiscal policy hasbeentogradually reduce thebudget deficit
from 9%ofGDP in1994, and4.9% in1995 to3.4% in1996 and2.8% in1997.
Budgetary discipline hasbeenimproved bybetter controls ontheexpenditure side,including
theelimination ofsubsidies toenterprises andtheestablishment ofloan-based relations between the
national budget andlocaladministrations; andontheincome sidethrough anextension ofthetaxbase,
andimprovement intaxadministration andtaxcollection. About halfthebudget isspent onmeeting
social targets.WT/ACC/MOL/2
Page9
TheGovernment 'sfiscal policy plays amajor roleinthetransition tothemarket economy
andislinked toother aspects ofmacro-economic policy suchasprice information, monetary policy,
andpolicy onlabour remuneration andsocial security. TheLaw"OnFoundations oftheFiscal System"
isthebasis formosttaxes. Thislawprovides thatalltaxpayers aretreated thesame whatever type
ofproperty orform inwhich theyconduct theirbusiness. Themain taxes areasfollows:
(i) Corporate taxes
Thesystem ofcorporate income taxwasrevised in1994 when highratesoftaxation were
abolished. Corporate income taxisimposed ontheprofits ofallnon-agricultural enterprises aslegal
persons (agricultural enterprises paylandtax). Currently aunified taxrateof32%isapplied. The
definition ofprofit, however, differs fromwestern standards. Labour costsarenotfullyacknowledged
ascosts and,thus, influence thetaxable income. Enterprises aslegalentities arealsosubject toan
annual company taxof0.1I% oftheirequity and,inthecaseofmanufacturing, ofaroadtaxof1.5%
ofnetturnover. Fortrading companies areduced rateof0.06% applies.
(ii) Value-added tax
Currently theuniform rateoftaxation is20%. Arange ofproducts andservices areexempt
from VAT, e.g.public municipal transport, newspapers andperiodicals, bread, rawmaterials used
infootwear andtextile (production within theco-operation scheme oftheGSP) andarelisted inArticle 5
ofthe"Law onValue-Added Tax". Anadditional listisestablished annually bythe"Law onState
Budget" (thisyearinArticle 26ofthe"Law onState Budget 1996", amended byLaw810-XIII of
18April 1996). IntradewithCIScountries theprinciple ofthecountry oforigin isapplied, i.e.exports
aresubject toMoldovan VAT, while noVAT isimposed onimports fromCISstates. Intrade with
allother countries theprinciple ofthecountry ofdestination isapplied, i.e.Moldovan VAT isimposed
onimports attheborder. Exports tonon-CIS countries haveVAT refunded.
(iii) Excise taxes
Excise taxes apply toluxury and"high demand" products andarethesame throughout the
territory. Thefollowing groups ofproducts aresubject toexcises:
- oilandoilproducts
- jewellery made ofprecious metal
- tobacco andtobacco products
- beer, wines andspirits (including sparkling wineandbrandy).
Goods subject toexcise taxes
Vodka, liqueurs, andother alcoholic beverages 0.5bottle 1.20lei
Alcohol, except thatusedformedical, veterinary and
pharmaceutical purposes1dl 30.00
Wines ofhighquality -natural 0.7bottle 0.40
Wines ofhighquality -dessert andstrong 0.7bottle 0.70
Ordinary wines -natural 0.7bottle 0.15
Ordinary wines -dessert andstrong 0.7bottle 0.30
Rawwines -natural 1dl 2.00
Rawwines -strong 1dl 3.00
Rawwines -sparkling 1dl 2.00
Sparkling wineWT/ACC/MOL/2
Page10
(iv) Personal income tax
Allindividuals whoreceive income inMoldova aresubject topersonal income tax. No
distinction ismade between localandforeign citizens. Personal income istaxable fromLei180,taxes
ratesbeing staggered from10%to50%. These ratesapply toallkinds ofpersonal income, whether
from employment, other economic activities, dividends orroyalties. Moldova hassigned bilateral
agreements toavoid double taxation withanumber countries.
(c)Foreign exchange andpayments system, IMFrelations, foreign exchange regulations
On29November1993,MoldovawithdrewfromtheRoubleZoneandintroducedtheLeu(plural:
Lei)asthenational currency. OneLeuequals 100Bani. InJune1996, 1USDollar equalled 4.54
Lei.Under thecurrency regulations oftheNational BanktheLeuistheonlylegaltender fortransactions
withintheRepublic.TransactionsinforeigncurrencyaresubjecttotheNationalBank'sforeignexchange
regulations.
OnentrytoandexitfromMoldovaallfundsinLeiorcurrencieshavetobedeclared.Moldovans
areallowed Lei500anduptotheequivalent ofUSD1,000 inconvertible currencies without declaring
them when leaving Moldova. With authorisation oftheNational Bank, between USD 5,000 and
USD 50,000 inforeign currency canbetaken outofthecountry. Allamounts exceeding USD 50,000
havetobetransferred through thebanking sector.
Non-residents areentitled tocarry anamount ofconvertible currency which doesnotexceed
theamount specified inthecustoms declaration signed bythecustoms authorities onentry orspecified
intheimport permit issued byanauthorised bankortheNational Bank ofMoldova. Thisamount,
however, must notexceed USD 50,000 perperson. Amounts exceeding USD 50,000 havetobe
transferred through thebanking sector.
There arenorestrictions ontheimport offoreign currency toMoldova.
Enterprises inMoldova which receive foreign currency havetotransfer ittotheiraccounts
withanauthorised banknolaterthan60daysfrom thedateofthereceipt ofthemoney andnolater
than150daysfrom thedateofthecustoms declaration confirming theexport ofgoods ordelivery
ofservices.
Enterprises aslegalentities mayhaveoneaccount inforeign currency andanadditional one
inanyofthenon-convertible currencies. Residents canopenandoperate foreign exchange accounts
inbanks situated outside Moldova onlyiftheyhaveanauthorisation from theNational Bank.
Legal entities inMoldova areentitled tomake payments abroad onlyinthecaseofbusiness
transactions orforrepayment offoreign exchange debtregistered bytheNational Bank. Foreign
exchange cashcanbewithdrawn from accounts onlyforbusiness trips. Other transactions haveto
bemade through banktransfer.
Ifenterprises buyforeign exchange attheInterbank currency exchange anddonotuseitto
carry outpayments abroad within 30daysfromthedateofpurchase thesummustbeoffered forsale
through theauthorised bank. Advance payments which arenotusedbecause ofdefault ofthecontract
ornondelivery ofgoods must berepatriated.
Accounts inMoldovan Leicanbeopened bynon-residents intheauthorised banks following
thesaleofforeign exchange ontheforeign exchange market orastheresult ofsaleofgoods ordeliveryWT/ACC/MOL/2
Page11
ofservices. Legal entities ofanycountry canopenaccounts inMoldovan Leiwithout anauthorisation
bytheNational Bank ofMoldova.
Moldova isamember oftheIMF andhasaccepted andimplemented theobligations of
Article VIII,section 2-4oftheIMFstatutes. Moldova thereby meets theFunds 'standards ofcurrent
account convertibility.
Moldova hasreceived significant assistance fromtheIMFintheareaofmonetary policy and
forimproving, itsarrangements forsettlements andclearing. Experts oftheIMFstatistics department
havehelped todevelop asystem ofnational accounts andbalance ofpayments data.
AnewMemorandum onafurther programme ofco-operation withtheIMFwassigned on
3April 1996. Asecond Memorandum wasapproved bytheBoard ofGovernors concerning the
Programme offurther co-operation.
(d)Foreign anddomestic investment policies inMoldova
Since 1994amajor objective ofnational economic policy istopromote abusiness environment
which istransparent andfairforbothdomestic andforeign investors. Toattract foreign investment
favourable conditions havebeencreated byestablishing astable legalandinstitutional base, andby
introducing incentives andguarantees forforeign investors.
Thegeneral legal provisions concerning foreign investments aresetforth intheForeign
Investment Actof1April 1992 (with subsequent amendments). TheActlaysdown theconditions
fortheformation andregistration ofbranches andsubsidiaries offoreign companies aswellas
joint-ventures. Itregulates theirtreatment regarding customs, foreign exchange andtaxation. Ithas
beenamended twice in1994. Themostimportant point wastheabolition oftheregulation thatlocal
employees ofcompanies withforeign investors orcompanies withexclusively foreign capital could
bepaidinforeign currency.
Theestablishment ofacompany withforeign investment generally doesnotrequire approval.
Registration follows thesame procedures asfordomestic companies. Thenecessary documents must
besubmitted totheStateRegistration Chamber intheMinistry ofJustice. Inprinciple, allindustrial
sectorsareopentoforeigninvestmentprovidedthatitdoesnotconflictwiththeinterestsofstatesecurity,
theprovision oftheanti-trust legislation orstandards inenvironmental protection, public health and
public morals. Moldova reserves therighttolimitorprohibit activities ortoestablish certain fields
ofactivity where theundertakings offoreign companies arelimited orprohibited, asmentioned above.
Thismust, however, beexplicitly defined intheregulations.
Iftheshare offoreign investors intheequity ofacompany exceeds USD5million itisnecessary
togetapproval from theanti-trust authorities. Incertain cases foreign investors mayberequired to
obtain special permission from theState Environmental Protection Agency andthemedical and
epidemiological agency, confirming thesafety oftheapplied technology andtheplanned production
facilities.
TheForeign Investment Actoffers taxandcustoms incentives which areprecisely defined.
From thedateitcommences operations andsubmits itsfirsttaxreturn, acompany withforeign
investment enjoys a50%reduction inincome taxforafiveyearperiod onthecondition thattheforeign
investment exceeds USD 250,000 andthatover50%ofsalesrevenue isearned fromitsowngoods
andservices. Topromote foreign investment additional incentives maybegranted byParliament.WT/ACC/MOL/2
Page12
Capital goods which areusedasassets inanewly formed enterprise, orwhich willbeused
foracapital increase, areexempt from customs duty. Thisregulation applies toallgoods required
fortheoperation oftheventure.
Freetransfer ofprofits, bothduring theperiod ofoperation andafterliquidation oftheforeign
investment, isexplicitly guaranteed.
Bilateral agreements onthepromotion andprotection ofinvestments havebeensigned with
anumber ofcountries. (Annex 8refers)
(e)Competition policies
Thelegalframeworkforanti-monopolyregulationistheLaw"OnMonopolyActivitiesLimitation
andtheDevelopmentofCompetition"of13May1994.ThisLawestablishesthefundamentalprinciples,
along thelinesofcompetition lawintheEU,forregulating theactivity ofenterprises having adefacto
monopoly andthusforsupporting. thedevelopment ofcompetition. Themainprinciples areasfollows:
- dominant positions inthemarket byeconomic agents areunacceptable;
- concerted action restricting competition isbanned;
- action bytheState oradministrative authority torestrict competition isunacceptable;
- when economic agents buyshares orcapital stock theobservance ofanti-monopoly legislation
willbeenforced;
- concentration willbecontrolled anddivestment byeconomic agents maybeordered;
- violations oftheantimonopoly lawwillbeprohibited.
Aspartoftheimplementation oftheLaw, apackage ofprudential requirements wasapproved
onOctober 51993 (Government Resolution No619). Included areprovisional regulations applying
toholding companies. AState Register ismaintained ofcompanies, which aremajor producers of
aproduct inthedomestic market without holding adominant market position. Atpresent there are
lessthan50suchenterprises. Thelistwasestablished fortaxation purposes astheGovernment
considered thatbecause oftheir"defacto" monopolistic position onthedomestic market theyshould
payanextra tax.Progressively, withtherestructuring oftheeconomy theposition ofthese producers
isbeing challenged bynewproducers andbyimports.
3. Moldova 'sforeign trade ingoods andservices
In1995, Moldova hadcommercial relations with90countries allovertheworld. Forstatistics
andpublications onforeign trade seeAnnex 1.
Statistical information ontradeisasyetincomplete primarily withregard toservices. However,
according toaprovisional estimate, Moldova 'strade inservices in1995 showed adeficit of
USD 81.3million. Themain components ofthisaretransport (-USD 94.6million), financial and
banking services USD 0.9million), insurance (-USD 0.3million), travel (+USD 0.5million), and
telecommunications (+USD 2.1million).
4. Domestic Trade inServices Including Value andComposition ofForeign Direct Investment
Onlylimited dataisavailable ondomestic tradeinservices. Itisestimated thatthetotaltrade
in1995 wasworth MDL 600million (USD 130million).
Asregards foreign direct investment in1995, therewereatotalof285companies withforeign
investment. Thetotalvalue oftheforeign equity ofthese companies amounted toUSD 48million.
OfthisUSD 14million wasinvested between January andSeptember 1995. Theprincipal foreignWT/ACC/MOL/2
Page13
investors areItaly, Malta, Switzerland, Germany, Luxembourg andtheUS.Together these countries
account for78%ofallforeign investment.
Themajor share offoreign investment inMoldova in1995 went intothefoodprocessing
industry, accounting forUSD13million or26%, thefinancial andbanking sector withUSD8.4million
or17%andrealestate withUSD 6.8million or14%.
5. Information onfinancial movements related tonationals working abroad, remittances
etc.
Moldova obtains labour-related income from nationals whohavemigrated tocountries with
higher income levels. Asthismigration hasdeveloped onlyrecently andbecause income isrepatriated
mainly incashform, precise dataontheflows involved isnotavailable.
6. Information ongrowth intrade ingoods andservices andforecast
Indollar terms Moldova 'sexports ofgoods in1995 were28%higher thanin1994; imports
increased by25%in1995. Statistics ontradeinservices arenotavailable. Asyettherearenoforecasts
for1996.
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE INGOODS AND TRADE INSERVICES
1. Powers oftheExecutive, theLegislature andtheJudiciary
ThePresident istheHead oftheState. Hedesignates thePrime Minister inconsultation with
theparliamentary majority. After aparliamentary voteofconfidence thePresident appoints the
Government. ThePresident hastheright, afterconsultations withparliamentary groups, todissolve
Parliament inthecaseofinability toformtheGovernment orwhen thepassing ofnewlegislation has
beendeadlocked forthree consecutive months.
TheExecutive isembodied intheGovernment. Itconsists ofthePrime Minister, theFirst
Deputy Prime Minister, theother Deputy Prime Ministers, Ministers, andDirectors-General whohead
Departments, aswellasother members. TheroleoftheGovernment istocarry outthedomestic and
foreign policy oftheState andtoexercise general control overthepublic administration. Decisions
aregenerally signed bythePrime Minister andtheresponsible minister.
Thelegislative power isvested intheParliament. Itconsists of101deputies elected fora4-year
term. TheParliament enacts laws, ratifies international treaties andcontrols theExecutive which is
accountable toParliament.
TheJudiciary isindependent oftheExecutive andtheLegislature. Justice isadministered by
theSupreme Court ofJustice, theCourt ofAppeal, Tribunals (High Courts) andCourts ofLaw
(Magistrates andCounty Courts). Except fortheSupreme Court, judges areappointed bythePresident
onthebasisofaproposition fromaspecial commission. Judges oftheSupreme Court areappointed
byParliament.WT/ACC/MOL/2
Page14
2. Government entities responsible formaking andimplementing policies affecting foreign
trade.
TheDepartment ofForeign Economic Relations (DFER) intheMinistry ofEconomy is
responsible forMoldova 'sinternational economic relations. TheDFER prepares, implements and
co-ordinates foreign economic policy andinternational co-operation.
Responsibility foreconomic policy asawhole lieswiththeMinistry ofEconomy andincludes
theimplementation oftheeconomic reforms undertaken intheframework ofthetransition toamarket
economy.
TheMinistry ofAgriculture, theMinistry ofHealth andaGovernmental Commission for
regulationofforeigntrade,technicalassistanceandhumanitarianaidperformspecificfunctionsconnected
tolicensing.
TheDepartment ofCustoms implements theGovernment 'scustoms policy andensures that
customs legislation isobserved.
AsCentral Bank ofthecountry, theNational Bank defines thenational monetary policy and
isresponsible forthestability ofthecurrency. Itregulates themoney supply, setstheexchange rate
policy andcontrols theactivities ofcommercial banks andother credit institutions. TheNational Bank
issues licences fortheestablishment ofcommercial banks, andlaysdown andmonitors prudential
requirements. TheNational Bankisindependent oftheGovernment andreports directly toParliament.
TheMinistry ofFinance formulates financial andfiscal policy including aspects relating to
trade andsupervises theimplementation ofthefiscal regime incommercial activities.
TheDepartmentofStandards,MetrologyandTechnicalSupervisionensuresthattherequirements
ofstandardisation andcertification aremet. Onrequest theDepartment provides importers with
information ontheproducts subject tocertification andonconformity procedures.
There isaStateAgency fortheProtection ofIndustrial Property (AGEPI), andaStateAgency
onCopyright (SeeChapter VI).
3. Division ofauthority between central andsub-central governments.
Inprinciple theexclusive responsibility formaking andimplementing policies affecting foreign
trade isvested withthecentral Government.
However, theGagauz-Yeri region intheSouth (150000inhabitants) hasbeengranted autonomy
withaspecial statute, which allows ittosettle independently allpolitical, economic andcultural matters
inorder tosafeguard theinterests ofthepopulation oftheregion. ItsParliament, thePopular Assembly,
hasthecompetence toadopt locallawsinthefollowing fields:
- science, culture, education;
- household andtown-planning;
- health careandsports;
- localbudget; financial andfiscal activity;
- economy andecology;
- employment andsocial assistance.
Thepolitical situation intheterritories ontheleftbankoftheNistru River isatthepresent
timeunsettled.However,thesituationisimprovingsteadilythroughthepermanentconsultationsbetweenWT/ACC/MOL/2
Page15
therepresentatives oftheregions which havebeenestablished andwhich include regular talkson
economic matters.
4. Programmes orplans tochange theregulatory regime
TheGovernment isatpresent redrafting Moldova 'sforeign tradelawwithaviewtorendering
itmore transparent andtobringing itintolinewithWTO requirements, where thisisnotalready the
case.OtherprogrammestocompleteMoldova'sregulatoryregimeareindicatedintherespectivesections
ofthisMemorandum,
5. Laws andlegal acts
Refer toAnnex 2.
6. Description ofjudicial, arbitrage oradministrative tribunals orprocedures, ifany
Thejudicial system isinaperiod oftransition. TheLaw"Onthejudicial system" wasenacted
inMay1996, andanumber ofdraft lawsthatamend thepenal andcivilcodes andthecode on
administrative infringements were submitted toParliament.
TheLaw"Onthejudicial system" No.514-XIII of6July1995, provides forfivetribunals
(High Courts) eachcovering oneoffiveregions, tobesetup.Thetribunal consists ofonegeneral
College andanumber ofspecialised Colleges. Several courts oflaw(Magistrates) willoperate under
eachofthese fivetribunals. Thecourts oflawexercise theirauthority inthedistricts ('Rayons ')and
inthetowns.
TheLaw"Onarbitration" No.129-XIII of31May1994created asystem ofarbitration. Cases
ofaneconomic nature may inthefirstinstance bedealt with byprivate arbitration courts.
Reconsideration ofthedecisions ofprivate courts ofarbitration shall becarried outbythepublic
Arbitration Board oftheRepublic ofMoldova. Thefirstprivate court ofarbitration wasestablished
bytheChamber ofCommerce.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import regulation
(a)Registration requirements forengaging inimporting.
According tothepresent legislation (theDecision oftheGovernment No.371from 6June
1995), therearenospecific registration requirements forengaging inimporting. Theonlyrequirement
isthattheintention toperform import activities should bementioned inthestatute oftheenterprise.
Enterprises whose statutes donotyetspecify import activities canaddthese without difficulty. Most
duties areadvalorem butthere arealsoanumber ofspecific duties.
(b)Characteristics oftileMoldovan national tariff
Thepresent import customs tariffofMoldova wasintroduced byPresidential Decree No.185
of4November 1993, andhasbeenmodified several times since. Thecurrent tariff wasenacted by
Parliament inDecember 1995 asAnnex 11totheLaw"OnstateBudget for1996" No.686-III that
wasseveral times amended inApril 1996 andisenclosed withthisMemorandum.WT/ACC/MOL/2
Page16
TheMoldovan tariff complies withtheHarmonised System, using theHSdescriptions and
the8-figure classification ofcommodities.
Theimport customs tariff comprises twocolumns ofcustoms duties applicable, oneofwhich
isbased onmost-favoured-nation treatment forallimported commodities, irrespective oftheirorigin
andtheother withzeroratesforthecountries withwhich freetrade agreements areinforce.
WithregardtocommoditiesimportedfromcountrieswithwhichMoldovahassignedinternational
agreements orconventions, customs duties apply inconformity withtheprovisions specified inthese
agreements (formore details seeAnnex 8).
(c)Tariff quotas andtariff exemptions
There arenotariff quotas. Regulations withregard totheapplication ofthecustoms tariff
(Decision No.689,along withsome modifications specified inDecision No.640of26August 1994)
provide forcomplete exemption from duties ofimports from members oftheCommonwealth of
Independent States andfrom Romania inaccordance withthefreetrade agreement signed withthese
countries, andofimports fromcountries classified bytheUnited Nations asleastdeveloped. Certain
types ofimports arealsoexempted fromdutysuchascharitable donations, goods under co-operational
contracts etc.
(d)Other duties andcharges
Animport orcustoms userfeeof0.25% isapplied forcustoms services andoperations. This
wasintroduced bythe1996 Budget Lawandapplies toimports from allcountries.
(e)Quantitative import restrictions
There arenoquantitative restrictions.
(f)Import licensing procedures
Imports are,asarule,notsubject toimport licensing. However, asinmostcountries, import
ofalimited number ofspecific goods issubject tolicensing. Details areprovided inAnnex 3given
inreply tothequestionnaire onimport licensing.
(g)Other border measures
There arenoother border measures.
(h)Customs valuation
According toGovernment Decision No.99of27February 1995 onCustoms Valuation, the
calculation ofduties payable forimported commodities ismade onthebasisofthefollowing criteria:
- therelevant tariff (assetoutinthetariff schedule);
- thecustoms value;
- theorigin ofthegoods (forgoods benefiting from preferential trade agreements).
Inorder todetermine thecustoms value, itisnecessary topresent thecontract, theinvoice
andother relevant documents showing allexpenditures involved inthepurchase ofthegoods from
abroad.WT/ACC/MOL/2
Page17
Conversion tonational currency toestablish thecustoms value ofgoods isbased ontheexchange
rateestablished andpublished bytheNational Bank oftheRepublic ofMoldova.
Theintention ofMoldova, onaccession totheWTO, istobring itscustoms valuation regulations
andpractices intolinewiththose oftheWTO Customs Valuation Agreement.
(i)Other customs formalities
Customsdeclarationisacompulsoryrequirementforcarryingoutcustomsclearanceofimported
goods. Certificates oforigin arerequired forimports from preferential sources.
(j)Pre-shipment inspection
There arenoGovernment regulations onpre-shipment inspection.
(k)Application ofinternal taxes onimports
According toArticle 3oftheLawoftheRepublic ofMoldova "OntheValue Added Tax"
themajority ofimported goods aresubject toaVAT of20%ofthevalue ofthecommodity declared
atcustoms andpayable within oneweek ofthedateofimportation intoMoldova. According to
Article 12oftheLawOntheState budget for1996" goods produced inCIScountries andimported
intoMoldovaareexemptedfromVAT.Severalitems,suchasseeds,fertilisers,plantprotectiondevices,
veterinary medication, office equipment, regardless ofthecountry oforigin areexempted fromVAT.
Excise taxispayable onallimported goods subject toexcise duty(Law onExcise ofthe
Parliament oftheRepublic ofMoldova No.347from27December 1994; fordetails seeChapter 11(b)
above) except forgoods originating fromRomania andtheCIScountries. Spirits usedinpharmacology
andveterinary areexempt from excise taxes.
(l)Rules oforigin
Alawontherules oforigin isunder preparation.
Rules oforigin ofgoods qualified toreceive thecustoms preferences foreseen bytheFreeTrade
Agreements signed withtheCIScountries andRomania, aswellasunder preferences intheframework
oftheGSP, areincluded inalltherespective agreements ofwhich theyform anintegral part.
(m)Anti-dumping regime
Moldova doesnot,atpresent, havealawonanti-dumping. Uptonow, noanti-dumping
measures havebeenapplied inMoldova. Alawonanti-dumping measures isinpreparation.
(n)Countervailing dutyregime
Uptonow, nocountervailing measures havebeenapplied inMoldova. Moldova intends to
comply withrelevant WTO Agreements ifspecific legislation isadopted inthefuture.
(o)Safeguard regime
Uptonownosafeguard measures havebeenapplied inMoldova.WT/ACC/MOL/2
Page18
2. Export regulation
(a)Registration requirements forengaging inexporting
According tothepresent legislation therearenospecific registration requirements forengaging
inexporting. Theonlyrequirement isthattheintention toperform export activities should bementioned
inthestatute oftheenterprise. Enterprises whose statutes donotspecify export activities canaddthese
without difficulty.
(b)Thecustoms tariff forexports
Moldova applies notariffs toexports. There isacustoms userfeeofa0.25%.
(c)Quantitative export restrictions
Exports ofgoods wereliberalised in1994. Since thenMoldova hasnotapplied quantitative
restrictions onexports except fortemporary restrictions regarding theexport ofunbottled wine
(Government Decision 231/1996). Licences arerequired forasmall range ofgoods withaspecial
character, details areprovided inAnnex 3a.
(d)Export licensing procedures
Licences arerequired forgoods withaspecial character defined inAnnex 3aandareissued
bytheDFER. Export licences aresubject toalicence fee.Theyareissued inthesamemanner asimport
licences. SeeAnnex 3.
Inaccordance withintergovernmental agreements onthesubject signed withanumber of
countries, nolicences arerequired forre-exports from Moldova.
Export licensing ontextiles andclothing products isimposed pursuant toanagreement with
theEuropean Union, butnorestrictions onthese exports arecurrently inplace.
(e)Other measures affecting exports
Export contracts foragricultural products andwaste paper havetoberegistered withtheDFER
(Ministry ofEconomy). Thecomplete listofgoods subject tothisregistration requirement iscontained
inAnnex 3b.Theregistration ofthecontract mayberejected iftheselling priceissignificantly lower
thanworld prices.
(f)Export financing, subsidy andpromotion policies
Atpresent Moldova applies noexport subsidies, special promotion andfinancing policies.
(g)Export performance requirements
There arenoexport performance requirements.
(h)Import dutydrawback
Rawmaterials usedintheproduction ofgoods which aresubsequently exported areexempt
from customs duty, VAT andexcise tax.WT/ACC/MOL/2
Page19
3 Internal policies ofMoldova affecting foreign trade ingoods
(a)Industrial andsubsidy policies
Industry isanimportant element inthedevelopment ofthenational economy. Moldova has
noindustrial policy assuch, butaspartofitseconomic policy ithasidentified priority development
sectors forthenational economy. Taxincentives andrelief aregranted tosuchsectors intheform
ofpriority loansandtechnical assistance provided byinternational organisations orbilateral co-operation
programmes. Among suchsectors areenergy, transport, roadbuilding andtelecommunications. No
subsidies aregranted todomestic industrial production.
Thefocus ofMoldova 'soverall policy hasbeen onprivatisation, restructuring andthe
encouragement ofthemost efficient useofresources through thecreation ofamarket-oriented
framework. Thepolicy oftheMoldovan Government istomaintain anopen business environment
withfreedom ofinvestment, bothfornationals andforeigners, soistopromote industrial growth.
Only afewofthemany investment project, launched bytheprivate sector haveobtained some direct
Government aid,primarily toassist inintroducing newtechnologies,
(b)Technical regulations andstandards, including border measures affecting imports
Thelegalbasis fortechnical regulations andstandards applied inMoldova isprovided by(i)
Parliamentary Lawof25May1993 withregard toconsumer security, which reflects UNGeneral
Principles onthissubject andissimilar tolawsapplied inother countries, (ii)Parliamentary Law
No.90-XIIIfrom 22september 1995 "onstandardisation" and(iii)Regulation oftheGovernment
(regarding LawNo.590)onStateSupervision ofDocuments andNorms withRegard toStandardisation.
TheDepartment ofStandards, Metrology andTechnical Supervision (Moldova Standard) is
entrustedwiththeauthoritytoensurethattherequirementsofstandardisationandcertificationofMoldova
aremet.TheDepartmenthasadoptedmethodsandorganisationaldocumentswhichestablishtheNational
System ofCertification, based ontheinternational documents ISO9000 andtheEuropean standards
series RN45000. TheSystem provides thebasis onwhich general procedures ofcertification and
accreditation aredeveloped inMoldova. Trading andcertification ofexperts andauditors inthis
domain iscarried outincompliance withtherequirements ofISOstandard 1001
TheGovernmental regulation, referred toabove, approved theprogramme forestablishing
andcarrying outcertification, listed products (services) harmful toconsumers, andspecified: (i)the
nomenclature ofproducts whose safety should beconfirmed bycertificates ofconformity, and(ii)the
nomenclatureofimportedproduceswhosesafetyshouldbeconfirmedeitherbycertificatesofconformity
orbyother similar documentation.
Moldova isamember oftheConvention regarding promotion ofacommon policy inthedomain
ofstandardisation, metrology andcertification of13March 1991 (ofaregional type).
Moldova atpresent applies, asnational standards, 73Romanian standards, ofthese, 17are
identical toIBOstandards, and4toRNstandards, 655national standards andabout 20,000 interstate
standards (former Soviet standards).
(c)Sanitary andphytosanitary measures, including measures affecting imports
Hygienic examination ofimported foodproducts which areaccompanied byquality certificates
iscarried outonaselective basis, through acheck onmajor hygiene requirements inorder todecide
whether theproduct isfitforconsumption.WT/ACC/MOL/2
Page20
Imported foodstuffs whose quality certificates areincomplete or(inexceptional cases) missing,
aresubject toexamination inaccordance withthe"Medico-Biological Requirements andsanitary rates
ofrawmaterial andalimentation products quality", No.5061-89.
Atpresent, control atcustoms overthequality offoodproducts andrawlivestock products
iscarried outbyveterinary specialists representing theStaleveterinary services responsible forborder
control, towhom veterinary certificates oftheproducing country should besubmitted.
TheMoldovan lawsandregulations specifying instructions, norms, andmethodologies reflect
thepracticescommonlyusedbysanitary-epidemiologicalservicesinsupervisingimportsoffoodproducts,
andcomply withWTO requirements regarding sanitary andphytosanitary measures.
(d)Trade-related investment measures
InMoldova there areatpresent notrade-related investment measures ofthekindcovered by
theTRIMS Agreement.
(e)State-trading practices
InMoldova there arenostatetrading enterprises covered bytheprovisions ofArticle XVII.
(f)Freezones
There arenofreezones inMoldova.
(g)Freeeconomic zones
TheLawoftheRepublic ofMoldova No.1451-XII of25May1993 withregard tozones of
freebusiness undertakings provides thatfivetypes offreezones canbecreated, uptoatotalmaximum
areaof30%oftheterritory oftheRepublic:
- production;
- technology;
- transit, commerce anddeposits;
- insurance andbanking;
- tourism.
Uptonowtwosuchzones havebeencreated according totheLawNo.625-XIII "OnFree
Economic Zone Expo-Business Chisinau andlawN.626"OnFreeEconomic Zone Tvardita". Some
minor differences between theabove mentioned some should benoted. They mention adifferent size
ofterritory, bothbeing established for30years. Thelatter issubject toParliament 'sdecision for
prolongation,andalsomentionssomemoreactivitiessuchastransportandtransit,andadditionalservices
asmarketing andconsulting.
(h)Trade-related environmental policies
Trade measures thatrelate toenvironmental policies inMoldova arethemeasures described
else-where inthismemorandum concerning tradeinproducts suchasagricultural chemicals, industrial
waste, nuclear material, wildanimals, rareanimal species andplants, etc.
(i)Mixing regulations
Moldova doesnotmaintain mixing regulationsWT/ACC/MOL/2
Page21
(j)Government-mandated counter-trade andbarter
Toobtain fromtrading partners, theeconomics ofwhich areintransition, essential products
suchasenergy, metals, machinery andspare parts, theMoldovan Government occasionally enters into
negotiations withthesepartners topayforsuchsupplies withagricultural products. Theyarepurchased
bytheMoldovan Government onthedomestic market. Inaddition, barter trade isstillinexistence.
(k)Trade agreements which allocate specific country quotas
Moldova doesnotmaintain thistypeoftrade agreement.
(l)Government procurement practices
Ingeneral Government procurement formajor purchases isopen andisimplemented ona
competitive basis(Government Decision No.6727thJanuary 1995). Separate provisions areineffect
forpurchases which affect national security.
AnewlawonGovernment procurement inaccordance withWTO requirements isatthe
parliamentary stage.
(m)Regulation oftrade intransit
Transit ofcommodities through theterritory ofMoldova isatpresent freefrom thelevyof
feesandcustoms duties. VAT andexcise tax,Moldova grants freedom oftransit through itsterritory
tothetrade ofWTO members asprescribed byArticle VoftheGATT. Items whose importation in
Moldova issubject tolicensing require approval oftheGovernment. Theonlycharges levied arethose
fortransportation andthose commensurate withadministrative expenses orwiththecostofservices
rendered. Moldova isparty toamultilateral agreement ontransit trade within theframework ofthe
CISTreaty onEconomic Union. Thisagreement provides thatsignatories should nottaxorimpede
transit trade through theirterritories. Moldova hisalsosigned bilateral agreements onthissubject
withRomania, Ukraine, Belarus andRussia.
4. Policies affecting foreign trade inagricultural products
(a)Imports
Agricultural products maybeimported freely intoMoldova without quantitative restriction.
Duties applicable toindividual products aretobefound inMoldova 'scustoms tariff submitted with
thismemorandum
(b)Exports
Moldova grants nosubsidies toexports ofagricultural products.
(c)Export prohibitions andrestrictions
Moldova doesnotrestrict orprohibit theexport ofagricultural products except forregistration
requirements which existforexport contracts covering thegoods listed inAnnex 3b.SeealsoSection
2(c).WT/ACC/MOL/2
Page22
(d)Exports credits, export guarantees andinsurance programmes
TheGovernment doesnotprovide export credits.
(c)Internal policies affecting foreign trade inagricultural products
There arenointernal policies affecting foreign trade inagricultural products.
5. Policies affecting foreign trade inother sectors
(a)Textiles regime
There isnospecial regime fortextiles andclothing. TheAgreement withtheEuropean Union
isdescribed insection VIIbelow.
(b)Policies affecting trade inother major sectors
Atpresent, there arenopolicies affecting foreign trade inother major sectors.
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a)Intellectual property policy
Since itsindependence, Moldova hasfollowed apolicy ofdeveloping mutually advantageous
relations withallcountries oftheworld. Thenational legislation hasbeentransformed toadjust to
international standards. Thepolicy ortransition toamarket economy haslargely determined the
approach tointellectual property andtheextension oftherights ofitsowners Intellectual property rights
havebecome rights oflegalpersons andindividuals. Themain directions ofthepolicy havebeen:
- theenactment ofspecial national legislation onindividual intellectual property rights;
- theestablishment ofpublic authorities responsible forintellectual property rights;
- membershipininternationalconventionsandtreatiesontrade-relatedintellectualpropertyrights.
Theprotection ofindustrial property, therights ofowners oftitlesofprotection andinvestors
areimplemented onthebasis oftheProvisional Regulation No.456"OntheProtection ofIndustrial
Property intheRepublic ofMoldova" which wasadopted bytheGovernment in1993.
Thetitles ofprotection inMoldova arethefollowing:
- patents forinventions orimprovements ofinventions;
- certificates ofregistration ofindustrial designs, trademarks andservice marks, appellations
oforigin ofgoods andutility models.
TheOfficial Bulletin onIndustrial Property Issues (BOPI) provides information oninventions,
designs andtrademarks claimed andregistered inMoldova, aswellasonlegalactsandregulations
relating tointellectual properly."
(b)Responsible agencies forpolicy formulation andimplementation
Themain directions ofpolicy intheField ofintellectual property protection aredefined by
theStateAgency forIndustrial Property Protection (AGEPI), established on25May1992by(theDecreeWT/ACC/MOL/2
Page23
ofthePresident Moldova No.120,andbytheStateAgency onCopyright established on25November
1991 byDecree ofthePresident ofMoldova
(c)Membership ofInternational Intellectual Property Conventions
Moldova isamember ofthefollowing Conventions andtreaties:
- World Intellectual Property Organisation (WIPO)
- Paris Conventions fortheProtection ofIndustrial Property
- Patent Co-operation Treaty (PCT)
- Madrid Agreement concerning International Registration ofMarks
- HagueAgreementconcerningtheInternationalDepositofMicro-organismsforPatentProcedure
Purposes
- Nairobi Treaty ontheProtection oftheOlympic Symbol.
InNovember1903MoldovabecameamemberoftheWIPOPermanentCommitteeonIndustrial
Property Information (PCIPI). Talks havebeenfieldwiththeAdministration ofUPOV (International
Union oftheProtection ofNewVarieties ofPlants) todiscuss theterms ofMoldova 'saccession to
theUPOV Convention.
AGEPIco-operateswiththeEuropeanPatentOrganisation(EPO)andamoreformalco-operation
programme iscurrently under discussion Inaddition, AGEPI hassigned co-operation agreements with
25patent offices throughout theworld.
(d)Application ofnational andm.f.n. treatment toforeign nationals
Article 19oftheConstitution ofMoldova establishes thatforeign nationals havethesamerights
andresponsibilities asthenationals ofMoldova subject totileexceptions established byLaw.
Foreign nationals andlegalentities ofstates which aremembers ofinternational Conventions
ofwhich Moldova ismember, havethesame rights, asprovided bylegislative actsonintellectual
property protection, asnationals andlegalentities ofMoldova.
(e)Feesandtaxes
Afeeispayable forpatents forinventions, utility models, industrial designs, trademarks, and
appellations oforigin ofgoods. Terms andamounts areregulated bytheDecree oftheGovernment
ofMoldova No.415of13June1994.
2. Substantive standards ofprotection, including procedures fortheacquisition and
maintenance orintellectual property rights
(a)Copyright andneighbouring rights
Thecopying andneighbouring rights aregoverned bythelaw"OnCopyright andNeighbouring
Rights" No.293-XIIasofNovember 231994
Thislawprotects intellectual property intiledomain ofliterature, artandscience, expressed
inaform thatallows ittobereproduced, bothpublished andunpublished, irrespective oftheform,
thedestination andthevalue ofeachwork, aswellastheprocedure ofitsreproduction.
Ascreator, theauthor hastheexclusive copyright forhiswork. Thecopyright alsoincludes
thepersonal andeconomic rights oftheauthor.WT/ACC/MOL/2
Page24
Thepersonal rights entitle theauthor tothefollowing:
- therighttopaternity, thatistobeconsidered asauthor andtorequest suchrecognition;
- therighttohisname. thatistherightoftheauthor todecide howhisname willfigure during
theuseofthework;
- therighttothework'sintegrity;
- therighttoadvertise hiswork ortoallow (ortoprohibit) itspublication, aswellitswithdrawal.
Theeconomic rights givetheauthor orother holder ofthecopyright theexclusive right to
theuseofthework inanyformandbyanyprocedure. Theexclusive rightofuseofthework isdefined
astheright oftheauthor orother copyright holder torealise, toallow ortoprohibit thefollowing
activities:
- reproduction ofthework;
- distribution (saleorrental);
- public demonstration ofthework;
- translation.
Thedistributionrightsoftheoriginalworkorcopiesintheformofaudio-visualworks,computer
software, databases, phonograms andmusical works belong totheauthor orother copyright holder.
Thecopyright onaudio-visual work isconferred to:
- writer ofscenario;
- director/producer;
- composer astheauthor ofthemusic;
- cameraman;
- designer.
Theauthor ofawork created before, adapted orincluded without anychanges within the
audio-visual work, aspartofthiswork, isconsidered co-author ofthisaudio-visual work.
Thecopyright isregistered attheState Agency onCopyright. Forexercising ofcopyright
requires noregistration orother special procedures.
(b)Trademarks, including service marks
Thelaw"OnTrademarks andAppellations ofOrigin ofGoods" No.588-XII ofSeptember
221995defines atrademark asasignwhich serves todistinguish theproducts orservices ofenterprise,
legal persons orindividuals from theproducts orservices ofother enterprises, legal persons or
individuals.
Twokinds oftrademark hivebeentaken intoaccount: collective marks andcertification marks.
(i) Thecertification marks, belong tolegalpersons orindividuals, andcollective marks belong
toagroup forpersons; and
(ii) thecollective markrepresents thetrademark ofagroup orassociation, oravoluntary association
ofnatural orlegalpersons, intended todistinguish produced and/or commercialised products
andservices offered bythem incompliance withcertain quality standards.
Thetrademarks maybe:
- verbal, consisting ofletters, numbers, words, names andsurnames;
- pictures, flatorthree dimensional;
- combined, consisting ofverbal andfigurative elements.WT/ACC/MOL/2
Page25
Thetrademark mayberegistered inblack andwhite orincolour. Thecertificate ofregistration
isthetitleofprotection fortrademarks inMoldova. Theregistration isharmonised withtheinternational
legalconventions inforce. Theapplication forthetrademark andthecorrespondence concerning the
application should bemade attheAGEPI inMoldova. Theother documents oftheapplication can
besubmitted inMoldovan orinanyotherlanguage. When partsoftheapplication arewritten inanother
language, atranslation intoMoldovan shallbesubmitted within twomonths from thefiling date.
Thetrademark shallhevalid for10years from thedateofthefiling oftheapplication. The
filing dateofanapplication isconsidered tobethedateonwhich theapplication andthebillofpayment
arereceived bytheAGEPI. Theobjections ofthird parties should bemade within 3months from
theapplication dateofpublication.
Individuals andlegalforeign persons enjoy thesame rights aslegalpersons andindividuals
resident inMoldova onthebasis oftheinternational conventions ofwhich Moldova isamember.
(c)geographical indications, including appellations oforigin ofgoods
Theappellation oforigin isdefined bythelawOnTrademark andAppellation ofOrigin of
Goods" asthegeographical name ofacountry, region, locality orspecific place, aswellasgeographical
orhistorical appellation which aredueexclusively oressentially tothegeographical environment,
including natural andhuman factors. Theappellation oforigin canalsobeaword derived fromthe
geographical name ofacountry orfrom oneofitsterritorial-administrative parts.
Thecertificate ofregistration isthetitleofprotection forappellations oforigin inMoldova.
Therighttoreceive titles ofprotection fortheappellations oforigin belongs toindividuals orlegal
persons whorealise theiractivity inthegeographical areaindicated intheapplication.
Theapplication forregistration ofappellation oforigin should befiledinthestatelanguage.
Theregistration ofanappellation oforigin isvalid foranunlimited term.
(d)Industrial designs
Under theProvisional Regulation ontileProtection ofIndustrial Property anyornamental or
aesthetic aspect ofauseful article, which must haveanindustrial application, mayberegistered as
industrial design.
InordertoregisteranindustrialdesignanapplicationmustbesubmittedtoAGEPI,accompanied
byadetailed description. Applications arereceived inperson orbypost.
Resident applicants fortheregistration ofindustrial designs mayberepresented bythePatent
Attorney oftheRepublic ofMoldova. Foreign residents, bothlegal andnatural persons, must be
represented bythePatent Attorney. TheAttorney 'srights should beconfirmed withapower ofattorney,
issued bytheapplicant.
After filing, anapplication issubject tothefollowing procedures:
- formal examination;
- publication oftheapplication;
- substantive examination, ifrequested;
- registration ofindustrial design;
- granting ofthecertificate ofregistration.WT/ACC/MOL/2
Page26
Theregistration ofanindustrial design isgranted either without substantive examination at
theapplicant 'sresponsibility, oraftersubstantive examination.
Thetitleofprotection fortheindustrial design inMoldova isthecertificate ofregistration.
Thecertificate ofindustrial design registration confers totheowner theexclusive rightofitsuseon
theterritory ofMoldova aswellistherighttoprohibit ortoallow thirdpersons tocarry outwithout
authorisation thefollowing actions:
- reproduction;
- fabrication ;
- saleorimportation oftheindustrial products inwhich itisincorporated.
Protection isvalid for10years fromthedateofthefiling ofapplication withtheAGEPI and
mayberenewed for5years.
(e)Patents
According tothelaw"OnPatents forInventions" No.461-XII asofMay18,1995 apatent
forinvention canbegranted foranewproduct ormethod aswellasfortheutilisation ofaproduct
oramethod known before withanewpurpose. Theword "product" means: equipment, substance,
microorganisms, cellular cultures ofplants andanimals.
Thefollowing, inparticular, shallnotberegarded asinventions:
- scientific theories andmathematical methods;
- conventional signs, rules, schedules;
- methods ofperforating purely mental acts;
- methods ofeconomic organisation andadministration,
- algorithms andcomputer software.
- aesthetic creations (designs),
- topographies ofintegrated circuits;
- plant oranimal varieties.
Patents shallnotbegranted forinventions which violate accepted standards ofpublic morality.
Thepriority dateoftheinventions isthedatetheapplication issubmitted. Theapplication
must include thefollowing documents:
- arequest withinformation concerning theapplicant (inventor), andhissuccessor intitle,
3copies;
- description, 3copies;
- claims, 3copies;
- drawing andgraphics, ifnecessary, 3copies.
Allapplication materials should hesubmitted inMoldovan. However, thedescription, claims
anddrawings mayhesubmitted inFrench, German, English orRussian, butaMoldovan translation
must bepresented within twomonths from thedateofsubmission oftheapplication attheAGEPI.
Thefollowing procedures areperformed aftertheapplication hasbeensubmitted:
- formal examination;
- preliminary substantive examination;
- publication;
- substantive examination;
- granting ofthepatent,WT/ACC/MOL/2
Page27
AGEPI isauthorised togrant patents without substantive examination ontheapplicants
responsibility.
Applicantshavethepossibilitytorequestthesubstantiveexaminationprovidedthattherespective
feesarepaidduring thevalidity oftheperiod ofthepatent. InMoldova thepatent orinvention is
valid for20years. Theowner isobliged topayanannual feeformaintenance ofhispatent inforce
during allthealltileperiod ofvalidity ofthepatent.
Theextent oftheprotection conferred bythepatent isdefined bytheclaims, inconnection
withthedescription anddrawings.
(f)Plant variety protection
Atpresent plant varieties areprotected inMoldova likeinventions, inaccordance withthe
"Provisional Statute onIndustrial Property Protection ofMoldova".
(g)Layout designs ofintegrated circuits
Legislative protection isgranted onlyforgenuine layouts andnotforideas, processes, systems,
technology orcoded information which maybeembodied inlayouts.
Layout rights areaccorded bythecertificate ofthelayout registration. Registration ismade
without substantive examination. Thecertificate isvalid for10years.
(h)Protection ofsecret information
InMoldova commercial secrets areprotected bythe"Law ontheProtection oftheCommercial
Secret", No.171adopted byParliament on6June1994. Information isconsidered acommercial secret
if:
(i) ithasrealorpotential value totheeconomic agent;
(ii) access toitisrestricted;
(iii) ismarked, bystamp orotherwise asconfidential;
(iv) isnotcovered bytheprovisions oncopyright orpatents.
Special provisions apply forstatesecrets andmatters ofnational interest.
(i)Other categories ofintellectual property
Moldova recognises utility models iftheyconcern theconstructive execution ofmeans of
production andofconsumer goods ortheircomponent parts andiftheyhavenovelty andindustrial
applicability.
Therighttoautility model isconfirmed bythecertificate ofregistration.
Theutility model application mustbefiledattheAGEPI anditshould contain thefollowing
documents copies):
- arequest withinformation concerning theapplicant (inventor), orhissuccessor intitle;
- description;
- claims;
- drawing andgraphics, ifnecessary.WT/ACC/MOL/2
Page28
Theabove mentioned documents ensure thepriority rights oftheapplication from thedate
offiling theapplication attheAGEPI. Theapplication forgranting theutility model certificate shall
beaccompanied bythefollowing enclosures:
- abstract, 3copies;
- billofpayment;
- thepriority documents, ifrequired;
- information onthepatent attorney andpower ofattorney, when required, 1copy.
Inthecaseofrefusal, apatent application canbetransformed intoautility model application
withaninitial priority date. Inthiscase,theapplicant must, after3months fromthedecision ofrefusal
butnotlaterthan4years fromthefiling oftheapplication, filearequest forutility model registration
forthesame object attheAGEPI withthepriority request oftheinitial filing date.
Thetransformation ofautility model application intoapatent application fortheinvention
ispossible uptotheacceptation prior tothedecision forutility model registration. Inthiscasethe
priority datewillbethedateoftheinitial deposit.
Thecertificate isvalid for5years from thefiling date. Itmayberenewed for5years.
Atpresent inMoldova newanimal breeds areprotected inthesame wayasinventions. The
adoption ofa"Law onBreed Protection" isexpected inthefuture.
3. Measures tocontrol abuse ofintellectual property rights
EnforcementproceedingsareavailableunderexistingMoldovanlawsandpermiteffectiveaction
againstinfringementonintellectualpropertyrights.Theinitiativeforactionagainstinfringementbelongs
totheholder oftheproperty right.
Provisions forspecial measures bycustoms concerning theinfringement ofrightofintellectual
property rights areatthestage ofpreparation (see4(c)below).
4. Enforcement
(a)Civil judicial procedures andremedies
Thelegislation inforce provides forthepossibility topursue infringements onintellectual
property rights andregulates thepresentation ofproof. Theprinciple ofcompetition andpresumption
ofinnocence applies. ACourt system exists inwhich thecompetence oftribunals depends onthetype
ofdispute tobeconsidered.
Contesting parties havethepossibility tosolve disputes byrecourse totheservices ofarbiters,
there being onepermanently available intheAGEPI.
(b)Provisional measures
Theprocedure forthesettlement ofdisputes provides forrightholders toapply forprovisional
measures tosafeguard theirinterests.WT/ACC/MOL/2
Page29
(c)Special border measures
Theadoption isforeseen ofappropriate standards conceding theprocedures allowing theright
holder torequest thecompetent customs authorities towithhold therelease intofreecirculation of
materials which infringe intellectual property rights.
(d)Anyadministrative procedures and
(e)criminal procedures
Articles 34and35ofthe"Law onPatents forInvention" defines theactswhich aresubject
tocriminal andcivilpunishment intheformofimprisonment ofuptotwoyears (Article 34)withthe
possibility ofpaying apenalty instead ofimprisonment, oronlythepenalty (Article 35)andalso
prescribingcompensationforthedamagecausedtotherightholder,forprofitslostandfortheliquidation
ofthegoods ortransfer ofthem tothepatent owner.
Other measures areprovided bytheLawontheprotection ofConsumer rightNo.1453 of
May25,1993 aswellasbytheArticles oftheCriminal code:
141 - infringement ofinventor 'srights;
158 - unlawful utilisation oftrademarks;
122 - misappropriation oftheowner 'sproperty byswindle;
220 - acquisition orsaleofproperty obtained bycrime;
200 - obstruction ordamaging ofposters, public declarations, notifications,
advertisements oftheCode concerning administrative infringements.
According tothelaw"OnProtection ofConsumer Rights" allcommercial goods andrented
services mustcorrespond tothenormative technical documentation. Ifsuchdocumentation doesnot
exist, these goods orservices must correspond tothecharacteristics ofsimilar goods orservices.
5. Laws, decrees, instruction andother legislative acts
- LawonPatents forInventions No.461-XIII 18May1995
- LawonCopyright andNeighbouring Rights No.293-XII 23November 1994
- LawonTrademarks andAppellations ofOrigin ofGoods No.588-XII 22September 1995
- Decree ofthePresident oftheRepublic ofMoldova No.120of25May1992onEstablishing
ofState Agency ofIndustrial Property Protection oftheRepublic ofMoldova
- Resolution oftheGovernment oftheRepublic ofMoldova No.595of8September 1992 on
theApproval oftheRegulation oftheState Agency onIndustrial Property Protection ofthe
Republic ofMoldova
- Resolution oftheParliament oftheRepublic ofMoldova No.1328-XII of11March 1993on
theAccession ofMoldova totheWIPO andPCT
- Resolution oftheGovernment oftheRepublic ofMoldova No.456of26July1993onIndustrial
Property Protection intheRepublic ofMoldova
- ResolutionoftheGovernmentoftheRepublicofMoldovaNo.313ofJune1993ontheApproval
oftheProvisional Statute onthePatent Attorneys oftheRepublic ofMoldovaWT/ACC/MOL/2
Page30
- Resolution oftheGovernment oftheRepublic ofMoldova No.415of6June1994 onthe
Improvement oftheIndustrial Property Protection System andother normative legislative
statements
6. Statistical data
Statistical dataonthefiling ofapplications andthegranting oftitlesonallobjects ofindustrial
property arereproduced intheannual reports oftheState Patent Office andinthereports presented
byAGEPI totheWIPO. In1992 there were312applications byMoldovan nationals forpatents, in
1993therewere103applications byMoldovan nationals, 36byforeign nationals. In1994, therewere
237applications byMoldovan nationals and60byforeign nationals.
Atpresent Moldova hasstatistical reports oninventions adopted intheindustrial sector.
However, these reports arebeing revised toadapt themtotherequirements ofamarket economy and
align them tointernational practice.
VI. TRADE-RELATED SERVICES REGIME
1. General
Asinmany developing countries andcountries intransition, onlylimited dataareavailable
onMoldova 'sservices economy anditstradeinservices. Many service industries haveremained largely
unregulated, particularly inrelation toanydistinction between domestic andforeign supply. This
situation ischanging astheMoldovan Government iscurrently engaged inimproving thecollection
ofdataonthenational economy andinpreparing regulations andreforms insectors where thismight
berequired.
More generally Moldovan lawsandregulations donot,forthemostpart,distinguish between
trade ingoods andservices. Theright totrade isenshrined intheLaw"OnEnterprises and.
Entrepreneurial Activity" No845-XII asofJanuary 31992 (with amendments). Itshould benoted,
however, thatthislawdoesnotcover banks andfinancial institutions, forwhich other legislation exists
(seebelow). TheLawcontemplates ninedifferent kinds ofbusiness organisation. Italsospecifies
theconditions under which anenterprise mayberegistered, including theprocedure ofregistration
aswellastheconditions under which anenterprise 'sactivities maybeterminated. Thiscanhappen
ontheinitiative oftheowners, pursuant toacourt ruling ofinvalid registration, when anenterprise
hasbeenillegally established, orpursuant toacourt ruling ofbankruptcy.
Allenterprises must beregistered attheChamber ofState Registration within theMinistry
ofJustice andtheRegister isopentopublic scrutiny. TheLawalsorefers toallnon-residents (foreign
citizens) which practice entrepreneurial activities inMoldova, whose rights areequal tothose of
Moldovan citizens andwhich arenotsubject toanyrestriction. These requirements apply toalllegal
persons, whether theyarecorporations, partnerships orsingle proprietorships.
Some details affecting theentrepreneurial activities ofnon-residents arealsogoverned bythe
Law"OnForeign Investments" No998-XII asofApril 11994(with amendments). Relations between
contractors when oneofthemisalegalperson notincorporated inMoldova oranindividual notresident
inMoldova, aresubject toInternational Agreement regulations, iftheydiffer from theprovisions
established bytheLaw"OnEnterprises andEntrepreneurial Activities".WT/ACC/MOL/2
Page31
2 Policies affecting trade inservices
2.1. Description ofspecific measures affecting trade inMoldova 'smain service sectors
(a)Banking Services
TheLaw"OnBanks andBanking Activities" No.601-XII ofJune121991 (with subsequent
amendments) defines thebanking system ofMoldova asincluding theNational Bank ofMoldova,
commercial banks andother credit institutions. Thenotion ofcredit institutions covers legalpersons
andindividuals thatareinvolved inbanking transactions.
In1991 atwo-tier banking system withtheNational Bank ofMoldova serving asthecentral
bank wasestablished. Theactivity oftheNational Bank isregulated bytheLaw"OntheNational
Bank" No.599XII ofJune111991 (with amendments) andiscontrolled byParliament.
Commercial banks dulylicensed bytheNational Bank mayopenbranches andregional offices
throughout Moldova. Thebanking sector isopentoforeign banks which maysetupsubsidiaries,
branches orrepresentative offices. Inbanking joint-ventures, theforeign partner hastobeabankwhich
contributes itscapital inforeign currency.
Currently 27commercial banks havereceived alicence. TwoRomanian andoneRussian bank
haveopened branches inMoldova. There are25banks (including thebranches offoreign banks) are
authorised todealinforeign currency, 15ofthem havegeneral licences which entitle them tohave
correspondent accounts inforeign banks.
Most commercial banks aremembers oftheNational Banking Association ofMoldova.
Moldovan citizens andresidents arefreetocontract banking services abroad.
(b)Insurance Services
About70insurancecompaniesarelicensedtoprovidepropertyandlifeinsuranceandreinsurance
aswellascivilliability insurance services. Their activities aregoverned bythe"Insurance" LawNo.
1508-XII ofJune15199
According totheLaw"OnFinancial Institutions" No.550-XIII ofJuly211995theinsurance
service industry inMoldova issupervised bytheMinistry ofFinance which alsodefines regulations
concerning insurance services.
Moldovan nationals areallowed topurchase insurance abroad without restrictions andforeign
insurance companies mayadvertise theirservices inMoldova. However, insurance, providers must
register andbelicensed iftheywishtosellinsurance onMoldovan territory.
(c)Securities services
TheLaw"OnSecurities Circulation andStock Exchanges" hasestablished anindependent Stock
Exchange intheform ofaprivate jointstock company withopenmembership forlicensed brokers.
Trading began inJune1995. Because oftherapid progress ofmass privatisation itisexpected that
by1996some3million Moldovan citizens (twothirds ofthepopulation) willhavebecome shareholders.
Foreigners havetherighttobuyshares oflocalcompanies andtofloatthesecurities sopurchased in
Moldova.WT/ACC/MOL/2
Page32
AStateCommission ontheSecurities Market wasestablished in1994toserve asanindependent
regulatory body forthismarket.
InMoldova thereareatpresent 41investment funds, 11trustcompanies andseven depository
trustcompanies. There arealsoeight commodity exchanges (bidding centres).
(d)Telecommunications, Postal, Audio &Video services
TheMinistry ofTelecommunications isresponsible fordefining policy andforregulating the
telecommunication sector. Thenewadministrative andlegalframework forcommunication services
isdefinedbythe"LawonTelecommunications"No.520-IIIof7July1995,the"LawonPostalServices"
No.463-XIII of18May1995, the"Law onAudio-Visual Services" No.603-XIII of3October 1995,
the"Law onAudit" No.729-XIII of15February 1996, andthe"Law onEnterprises andEntrepreneurial
Activities" No.845-XII of')January 1992.
Twostateenterprises "Posta Moldovei" and"Moldtelecom" havebeensetuptoensure the
operation (including- thefinancial management), maintenance anddevelopment ofallstate
telecommunication andpostal services inMoldova. Although noentry barriers existthereisadefacto
statemonopoly forthese services except forprivate cellular telephone networks.
(e)Accounting, andAuditing Services
Under theLaw"OnAuditing" accounting andauditing services areregulated bytheMinistry
ofFinance. Accounting firms canbeestablished according totheLaw "OnEnterprises and
Entrepreneurial Activities" afterbeing licensed bytheMinistry ofFinance. These lawsdonotrestrict
foreign companies wishing tocarry outsuchactivities inMoldova. There are19accounting firms
atpresent inMoldova.
2.2. Description ofgeneral provisions regarding trade inservices
(a)Government departments, agencies, professional associations
Moldova continues todevelop aninstitutional structure tocover allmajor service sectors.
Thefollowing institutions regulate orhavetheauthority toregulate trade inservices:
- Ministry ofFinance National BankofMoldova: financial services, related professional services
(accounting, auditing andbookkeeping services, taxation services);
- MinistryofTelecommunications:postalservices,telecommunications.information.audio-visual
services;
- Ministry ofJustice: legalservices
- Ministry ofHealth: professional services (medical anddental services, services provided by
paramedical personnel); other health-related services;
- Ministry ofEducation andScience: research anddevelopment services; printing andpublishing;
educational services;
- Ministry ofCulture: cultural services;
- Ministry ofAgriculture: veterinary services, business services related toagriculture, hunting,
forestry andfishing;
- Ministry ofInterior: investigation andsecurity services;
- Ministry ofPublic Utilities andHousing: building cleaning services
- Ministry ofTransport andRoad Construction: transportation services, roadconstruction and
maintenance services;WT/ACC/MOL/2
Page33
- Department ofArchitecture andConstruction: architectural services, urban planning and
architectural landscape services.
(b)Judicial, arbitrage andadministrative tribunals andprocedures
Such procedures arethesame asfortrade ingoods andaredescribed inSection III.6.
(c)Qualification requirements andprocedures, licensing andregistration requirements
Qualificationrequirementsforthestaffofcommercialbanksinsurancecompaniesandaccounting,
firms arelaiddown inthelaws"OnBanks andBanking, ',"OnInsurance" andthelaw"OnAuditing '.
Services listed inSection VI.2.2.(a) above aresubject tolicensing. Thecompetent Government or
nongovernmental bodies supervise thesupply andtrade inservices intheirrespective domains and
maydeterminequalificationrequirements,licensingorregistrationproceduresthroughministerialorders
andinstructions. Such orders andinstructions havetoberegistered withtheMinistry ofJustice.
(d)Monopolies andexclusive service suppliers
Adefactogovernmentmonopolyexistsintheprovisionoftelecommunicationservices(excluding
public mobile andradio telecommunication networks), railways, pipeline transport, water andheat
supply. There arenolegalentry barriers tothesupply oftheseservices nordothesemonopolies enjoy
specific monopoly rights under Moldovan law.
(e)Safeguard measures
Moldova hasnolegalframework which permits theapplication ofsafeguard measures related
totrade inservices.
(f)International transfers andpayments forcurrent transactions ofservices
There arenorestrictions oninternational transfers andpayments forcurrent transactions of
services. Thefreetransfer ofpayments inconnection withinvestment isexplicitly guaranteed. On
entry toandexitfrom Moldova allfunds inLeiorother currencies havetobedeclared. Moldovan
residents areallowed totake500Leianduptotheequivalent ofUSD 1,000 inconvertible currencies
without special permit when leaving Moldova incash. With theauthorization oftheNational Bank
uptoUSD50,000 inforeign currency canbetaken outofthecountry incash. Allamounts exceeding
USD 50,000 havetobetransferred through thebanking sector.
(g)Capital transactions affecting thesupply ofservices
There arenorestrictions oncapital imports intoMoldova byforeign investors.
(h)Government procurement ofservices
InMoldova, thereisnodistinction between goods andservices forthepurposes ofGovernment
procurement, andtherefore nospecific provisions existwhich regulate Government procurement of
services.WT/ACC/MOL/2
Page34
(i)Consumer subsidies foressential services
There areconsumer subsidies forcertain basic services suchaslocaltransport, housing, and
some other municipal services. Alawwhich provides forthephasing outofthese subsidies andtheir
replacement bydirect support payments isinpreparation.
3. Market Access andNational Treatment
(a)Limitations onthenumber ofservice suppliers
Theonlylimitation onthenumber ofservice suppliers issector-specific, relating tocertain
telecommunication services.
(b)Limitations onthetotalvalue ofservice transactions orassets
Nolimitations existinMoldova onthetotalvalue ofservice transactions orassets.
(c) Limitations onthetotal number ofservice operations oronthetotal quantity of
service output
Nosuchlimitations existinMoldova.
(d) Limitations onthetotal number ofnatural persons thatmaybeemployed ina
particular service sector
Nosuchlimitations existinMoldova.
(e) Restrictions on,orrequirements, ofspecific types oflegal entity through which a
service maybesupplied
TheLaw"OnEnterprises andEntrepreneurial Activity" defines 10kinds oforganisational
forms thatenterprises maytake. Thiswiderange ofpermitted legalentities through which services
maybesupplied doesnotdiscourage anyparticular types oflegalentity.
(f)Limitations ontheparticipation offoreign capital
Nolimitations ontheparticipation offoreign capital exist. However, theForeign Investment
Actprovides thatiftheshare offoreign-n investors intheequity ofacompany exceeds US5million
itisnecessary toobtain approval from theanti-trust authorities.
(g)Measures providing forlessthan thetreatment accorded tonational services or
service suppliers
Nomeasures orlawsaremaintained byMoldova thatprovide forforeign services orservice
suppliers tobeaccorded treatment lessfavourable thanthatprovided tonational services orservice
suppliers. Itmaybenoted, however, thatoffshore banks arenotentitled toprovide retail banking
inthesame unrestricted manner asresident banks.
4. Most-Favoured-Nation Treatment
Moldova doesnotmaintain anymeasures inconsistent withm.f.n. treatment inthefieldof
services except forthelimited activities ofgambling, betting, lotteries andsimilar activities.WT/ACC/MOL/2
Page35
TheAgreement creating, anEconomic Union between Moldova andtheother CIScountries
signed on24September 1993provides forthefreecirculation notonlyofgoods butalsoofservices,
capital andmanpower.
VII. INSTITUTIONAL BASE FOR MOLDOVA 'STRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral orMultilateral Agreements onforeign trade inGoods\Services
Moldova hasconcluded anumber ofbilateral andmultilateral agreements which provide the
legalframework forthedevelopment oftradeandeconomic relations between Moldova andherpartners.
These agreements aimatpromoting, facilitating anddeveloping commercial exchange andeconomic
Co-operation. They arebased ontheprinciples ofequality andreciprocal advantage. Most agreements
embody themost-favoured-nation principle.
Interalia,theagreements stipulate that:
- trade mayconsist oftheexchange ofanytypeofgoods;
- payment forexported commodities shall, asarule,bemade infreely convertible currency.
However, andsubject tomutual agreement, settlement forgoods andservices maybepossible
inother forms, including innational currency;
- prices forgoods shallbeinlinewithworld market prices forsimilar commodities.
Theagreements alsoprovide forthedevelopment ofeconomic cooperation between theparties,
establishing, priorities formutual cooperation, action toexpand anddiversify trade, andthesolution
oflegaldisputes between theparties andeconomic agents andthecreation ofjointcommissions. The
complete listofMoldova 'sbilateral andmultilateral agreements relating toforeign tradeingoods and
services isgiven inAnnex 8A.
Moldova signed anAgreement ofPartnership andCo-operation withtheEuropean Union on
29November 1994. ThisAgreement covers cooperation inthepolitical, commercial, investment,
services andeconomic fields, aswellasfinancial andother matters. Itisnowbeing ratified bythe
signatories. Inthemeantime, on30October 1995, topermit theimplementation ofsome ofthe
provisions ofthisAgreement aninterim agreement withtheEUwassigned.
Moldova hasalsoconcluded anagreement ontradeintextiles andclothing withtheEUunder
which theEUmaytakeemergency action against import surges from Moldova, afterwhich export
quotas would benegotiated. Theproducts thatcould besubject tosuchaction arespecified andregular
exchange ofinformation isforeseen. Currently under thisbilateral agreement Moldova doesnotface
anyimport quotas intheEUmarket.
2. Economic integration, customs unions, freetrade areas
After gaining itsindependence in1991, Moldova signed agreements which involve theexchange
ofpreferential treatment aspartofthecreation offreetradeareas. Moldova signed freetradeagreements
withthecountries listed inAnnex 8A.
They exempt commodities originating inthecustoms territory oftheother partners from all
customs tariffs, taxes andfeesthatbearequivalent effect onexports andimports. Theagreements
donotcover trade inservices. Since Moldova doesnotmaintain import andexport restrictions other
thantheveryfewmentioned insection IV,mostofwhich areapplied forpublic security, health andWT/ACC/MOL/2
Page36
safety reasons, almost allofMoldova 'strade withthese bilateral partners isfreefromcustoms tariffs
andother obstacles toexport orimport inMoldova.
Inaddition totheabove, bilateral intergovernmental agreements ontrade andeconomic
cooperation havebeensigned byMoldova withtheCIScountries. These donotguarantee freetrade
butarebased onthemost favoured nation principle.
Atthemultilateral level, on24September 1993Moldova signed aframework agreement called
"Treaty ofEconomic Union" witheightotherCIScountries (Armenia, Azerbaijan, Belarus, Kazakstan,
TheKyrgyz Republic, Russia, Tajikistan andUzbekistan). TheUnion commits itsmembers tothe
eventual establishment ofacustoms union andcommon market among theparticipants. Thisisto
bedoneonthebasis oftherespect ofsovereignty andterritorial integrity, equal rights andreciprocal
responsibility.
Thebasic goals are:
- freecirculation ofgoods, energy, services, capital andlabour;
- co-ordinated monetary, exchange, budgetary, fiscal, pricing, foreign tradeandcustoms policies;
- balanced economic legislation;
- creation ofcommon statistical sources.
AstheTreaty isessentially ageneral conceptual framework, itdoesnotitself operationalise
thecommitments contained therein. Thespecifics ofpreferential trading relationship aretobedefined
inseparate freetrade agreements. Inthemeantime insofarasfreetrade applies between theparties,
itisconducted under theprovisions oftheseveral bilateral agreements mentioned above.
OnApril 1994Moldova andother members oftheCISsigned anagreement intended toactually
implement freetrade asforeseen intheabove Treaty. Thesignatories agreed toco-operate insolving
pressing problems inthefollowing way:
- gradually removing customs tariffs, taxesandfeesandquantitative restrictions intheirbilateral
trade;
- eliminating other restrictions onthefreeexchange ofgoods andservices;
- creating effective systems ofpayments settlements;
- contributing, tointersectoral andscientific-technical cooperation;
- adjusting andaligning legislation topermit thefunctioning ofthefreetrade zone.
Theagreement provides thatwithin sixmonths ofitsentry intoforce, themember countries
shallestablish thelistsofproducts which willnotobtain freetradetreatment and,fortheother products,
thestages ofprogressive implementation offreetrade (where thisisnotalready thecase). However,
thedeadline hasnotbeenmetanditisnotknown atpresent when themechanism forremoving trade
restrictions canbenegotiated andimplemented.
Afreetrade areawithRomania wasconcluded on15February 1994 andentered intoforce
on1January 1995. Allduties andquantitative restrictions wereabolished onmutual trade, however,
incases ofshortage eachpartner maytemporarily restrict exports oftheproduct concerned. Itison
thisbasisthattheannexes totheagreements listthecategories ofgoods subject tosuchtemporary export
restrictions.
OnApril 1994 Moldova signed amultilateral agreement withCIScountries oncommodity
re-exports. Thisarrangement aimsatcontrolling thereexportation ofproducts imported byonepartner
from another. Itseeks tocover problems ofprice differentials withworld prices andtoprevent the
circumvention ofrestrictions applied totheexport ofsome products bydifferent partners totheWT/ACC/MOL/2
Page37
agreement. Theagreement alsoestablishes regulations formembers toobtain permission fromothers
tore-export suchgoods andaspecial origin certification system tomonitor implementation.
MoldovaisaparticipantintheOrganisationofBlackSeaEconomicCo-operationof1992(BSEC)
along withtenother countries (Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Romania,
Russia, Turkey andUkraine). TheBSEC isneither aclearing system norafreetrade zone, though
theestablishment ofsuchzoneisamong, theobjectives setforth. Theaimistocement relations among,
neighbouring countries byencouraging, trade, economic andscientific cooperation, mutual investment
andindustrial development, improvement oftransport, communications andinternational payments
settlements.
3. Labour Market Integration Agreements
TheEconomic Union Treaty of1993 mentioned above under section 2includes theaimof
establishing, freecirculation oflabour. Thishasnotyetbeenimplemented.
4. MultilateralEconomicCo-operation,membershipofthemultilateraleconomicorganisations,
trade-related programmes ofother multilateral organisations.
Moldova isamember oftheIMF, theEBRD andtheIBRD anditsaffiliate theIDA. Itis
alsomember oftheInternational Centre fortheSettlement ofInvestment Disputes (ICSID) andthe
International Investment Guarantee Agency (MIGA) andtheInternational Financial Corporation (IFC).
Moldova hasobtained several loans from theIBRD andfrom theEBRD.WT/ACC/MOL/2
Page38
ANNEX I
1. Foreign trade statistics forgoods andservices: responsible agencies
There aretheremainagencies responsible forcollecting andpublishing foreign tradestatistics
forgoods andservices:
(i) Department ofForeign Economic Relations (Ministry ofEconomy)
(ii) Department ofStatistics
(iii) Department ofCustoms Control
2. Publications related tostatistics
- Yearbook oftheDepartment ofStatistics;
- Moldova 'sSocial andEconomic Overview (DFER,Ministry ofEconomy)
3. Statistical Data
(a) Main economic indicators
Table IGDP andGDP percapita (current prices)
1992 1993 1994 1995
GDP(lei million/current prices) - - 5,780 7,636
Average Exchange Rate(US$) 0.19 1.45 4.06 4.49
GDP percapita (US$) 232 351 327 391
Change inGDP (%previous year) 70.9 98.8 68.8 97
Table 2State Budget ofMoldova (excluding localbudgets; inmillions ofMoldovan lei)
1992 1993 1994 1994
Revenues
-Direct taxes
ofwhich: Corporate tax
ofwhich: Income tax
-Indirect taxes
ofwhich: Excise
-Customs duties
Land tax
Realestate tax
Other
Nontax revenues
Ofwhich: roadfees44.1
24
10.3
3.9
24.3
14.3
10.0
1.1
-
-
4.2
-372.4
132
102.5
35.6
158
94.5
61.5
7.0
14.1
-
3.0
57.2
10.01,038
250
248
-
361
180
151
29
2.6
2.0
299
-
411,295
165
154
-
750
509
190
51
10
-
110
-
56WT/ACC/MOL/2
Page39
Expenditures
Ofwhich:
National economy
Education
Health care
Subsidies
Lawanddefence
Debt service
Capital expenditures53.2
16.2
14.9
7.2
1.6
4.8
1.0
7.0509.0
70.8
133.3
81.6
17.7
47.1
23.0
49.01,319
94
131
90
120
79
28*
1111,667
163
576
375
91
148
234*
149
Balance
Financing
Netdomestic
Netbanking system
Nonbank
Arrears
Netforeign
Drawings
Amortizations-9.1
50
50
50
-
-
-
-
--136.7
189
136
110
-
26
53
54
1-280
-
-
-
-
-
-
-
--372
372
-
107.3
100.3
-
159
5.4
-
Table 3Employment bysector (Yearly average, inthousands)
1990 1992* 1994 1995
Total population
Labour resources
Total employment4,343.5
-
2,0504,348.9
-
1,6884,374.9
1,941
1,6814,334.4
-
1,675
Industry
Agriculture
Construction
Transport/communication
Trade andcatering
Education/culture/art
Healthcare
Science/research
Other415
749
146
105
133
223
116
28
155245
730
105
75
106
192
96
14
125232
767
91
73
107
191
98
13
109228
765
73
89
-
-
-
-
595
*thefigures for1992 include TransnitriaWT/ACC/MOL/2
Page40
Table 4Consumer prices andwages
CPI Changes inCPI Average Nominal
WageMonthly growth of
wages
Dec.1990 =100 %ofprev. month Lei %
Jan-93
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec69.67
88.48
111.67
128.08
141.66
189.25
260.98
321.53
447.89
642.72
788.62
1,255.4855.7
27.0
26.0
14.7
10.6
33.6
37.9
23.2
29.3
43.5
22.7
59.27.3
8.0
10.5
11.3
13.5
18.3
27.5
33.5
37.8
41.7
53.8
110.4-43.41
9.59
31.25
7.62
19.47
35.56
50.27
21.82
12.84
10.32
29.02
105.20
Jan-94
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec1,492.77
1,815.20
1,996.72
2,096.56
2,153.17
2,211.30
2,259.95
2,257.69
2,314.13
2,411.33
2,495.72
2,568.1018.9
21.6
10.0
5.0
2.7
2.7
2.2
-0.1
2.5
4.2
3.5
2.969.4
72.9
81.3
81.3
84.2
106.5
110.2
113.0
120.9
124.8
130.2
194.3-37.14
5.04
11.52
0.00
3.57
26.48
3.47
2.54
6.99
3.23
4.33
49.23
Jan-95
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec2,642.57
2,703.35
2,722.28
2,738.61
2,749.57
2,755.06
2,760.57
2,766.10
2,838.01
2,915.17
3,089.52
3,179.122.9
2.3
0.7
0.6
0.4
0.2
0.2
0.2
2.6
2.7
6.0
2.9124.0
116.0
126.7
121.8
123.9
134.5
138.2
137.6
139.3
150.2
154.4
224.4-36.18
-6.45
9.22
-3.87
1.72
8.56
2.75
-0.43
1.23
7.8
2.8
45.3WT/ACC/MOL/2
Page41
Table 5Balance ofPayments oftheRepublic ofMoldova
USD million 1994 1995
Total Conv. Neconv. Total Conv. Neconv.
CURRENT ACCOUNT -82.03 -11.98 -70.06 -94.72 18.17 -112.89
Trade balance -53.90 -10.61 -43.29 -32.42 3.25 -35.67
Export F.O.B. 618.48 212.98 405.50 740.64 272.51 468.13
including barter 0.00 0.00 0.00 201.89 42.37 159.52
Import F.O.B. -672.37 -223.59 -448.79 -773.06 -269.26 -503.80
cereals (FOB) -21.51 -16.93 -4.59 -12.86 -12.86 0.00
energy products -304.25 -20.45 -283.80 -293.29 -10.61 -282.68
barter 0.00 0.00 0.00 -85.99 -35.54 -50.45
Balance ofservices -46.15 -19.80 -26.35 -81.33 -10.53 -70.80
Transportation -51.00 -17.31 -33.69 -94.61 -22.01 -72.59
Gaztransit 10.22 0.00 10.22
Travel -2.80 -2.58 -0.22 0.53 -2.53 3.06
Insurance -0.27 -0.19 -0.09 -0.32 -0.27 -0.05
Other services -2.31 0.28 -2.59 13.06 14.28 -1.22
Income (total) -15.32 -13.01 -2.30 -20.50 -15.13 -5.37
remittances -9.52 -9.52 0.00 -9.52 -9.52 0.00
from direct investments 0.00 0.00 0.00 -0.07 -0.05 -0.02
from portfolio investment 0.93 0.93 0.00 -10.91 -5.55 -5.36
other investments(%) -6.72 -4.42 -2.30
Current transfers 33.33 31.44 1.89 39.53 40.58 -1.05
CAPITAL &FINANCIAL
ACCOUNT228.92 122.42 106.49 97.36 71.67 25.69
Capital account -0.97 -0.97 0.00 -0.38 -0.35 -0.03
capital transfers -0.97 -0.97 0.00 -0.38 -0.35 -0.03
Financial account 229.89 123.40 106.49 97.74 72.01 25.72
Direct investments 11.57 11.45 0.12 63.69 21.76 41.94
Portfolio investments 0.31 0.46 -0.16 -0.33 -0.20 -0.12
Other investments 218.02 111.49 106.53 34.37 50.46 -16.09
Assets -81.69 -44.10 -37.59 -120.95 -51.72 -69.22
Trade credits
Governmental
short term -0.28 -0.28 0.00 -1.55 -1.55 0.00
other sectors
short term -65.55 -37.41 -28.14 -135.41 -54.72 -80.70
Loans (credits)
governmental sector
longterm 9.48 0.00 9.48 9.48 0.00 9.48WT/ACC/MOL/2
Page42
USD million 1994 1995
Total Conv. Neconv. Total Conv. Neconv.
short term 0.00 0.00 0.00 0.00 0.00 0.00
banking sector
short term -0.21 0.00 -0.21 0.07 0.07 0.00
longterm 0.00 0.00 0.00 0.05 0.00 0.05
other sectors
short term -0.03 0.00 -0.03 0.04 0.00 0.04
Currency &deposits -11.32 -3.90 -7.42 8.90 8.67 0.23
Financial organisations -1.33 0.06 -1.39 2.86 0.02 2.84
Banking sector -9.88 -3.93 -5.96 -13.22 -15.79 2.57
Other sectors -0.10 -0.03 -0.07 19.27 24.44 -5.18
Other assets
governmental -13.31 -2.04 -11.28 -1.88 -3.55 1.67
other sectors 0.00 0.00
Liabilities 299.71 155.58 144.12 155.04 101.91 53.13
Trade credits
Governmental
short term -3.61 -3.61 0.00 0.53 0.53 0.00
commercial banks
short term
other sectors
short term 126.79 1.51 125.28 46.50 3.04 43.46
Loans (credits)
governmental
longterm 151.46 157.96 -6.50 54.99 77.68 -22.68
short term 0.00 0.00 0.00 0.00 0.00 0.00
banking system
short term 0.20 0.00 0.20 0.00 0.20 -0.20
longterm 0.00 0.00 0.00 6.32 6.32 0.00
other sectors
short term 0.06 0.00 0.06 0.16 0.23 -0.06
Long term 0.00 0.00 0.00 4.44 4.44 0.00
Currency &deposits 2.17 -0.08 2.25 7.60 9.12 -1.52
Financial organisation 3.12 -0.15 3.27 2.17 3.36 -1.19
Banking system -0.95 0.08 -1.03 5.43 5.76 -0.33
Other sectors 0.00 0.00 0.00 0.00 0.00 0.00
Other liabilities
governmental
short term 17.54 0.17 17.37 20.99 0.35 29.64WT/ACC/MOL/2
Page43
USD million 1994 1995
Total Conv. Neconv. Total Conv. Neconv.
commercial banks
short term
other sectors
longterm
short term 5.09 -0.37 5.46 13.49 0.00 13.49
BASIC BALANCE 146.88 110.45 36.44 2.64 89.84 -87.20
Errors &omissions -114.06 -77.62 -36.44 10.11 -77.08 87.20
OVERALL BALANCE 32.82 32.82 0.00 12.75 12.75 0.00
FINANCING -32.82 -32.82 0.00 -12.75 -12.75 0.00
IMFcredit 71.29 71.29 0.00 64.67 64.67 0.00
Reserves adjustment -104.12 -104.12 0.00 -77.42 -77.42 0.00
Average exchange rateLM/USD 4.53
Table 6Moldovan Foreign Trade
Export 1992 1993 1994 1995 1996
(estimated)
Total (USD million) 426.6 484.8 632.1 745.5 875.4
Growth (%change) 0.49 483.0 565.4 31 17
Import
Total (USD million) 624.9 628.0 659.3 840.7 946.1
Growth (%change) 0.69 0.4 4 27 12
Country1993 1994 1995
Total Export Import Total Export Import Total Export Import
1 2 3 4 5 6 7 8 9 10
Russia
Ukraine
Belarus
Uzbekistan
Kazakstan
Georgia
Azerbaijan
Kyrgz Republic
Tajikistan
Armenia
Turkmenistan393.9
192.5
49.8
4.13
16.1
1.01
70.35
3.63
1.40
0.55
15.60172.1
62.9
17.3
2.33
6.64
0.50
31.31
1.10
0.79
0.20
9.68221.7
129.6
32.4
1.8
9.4
0.51
39.04
2.53
0.61
0.35
5.92608.3
191.2
43.8
3.19
10.13
1.58
25.0
1.27
0.39
0.26
6.10289.3
68.5
23.7
1.42
7.14
0.63
13.0
0.37
0.30
0.19
1.07319.1
122.7
20.1
1.77
2.99
0.95
12.0
0.90
0.09
0.07
5.03634.1
276.6
77.1
4.9
11.08
0.25
10.9
0.97
0.16
2.68
2.22360.0
58.9
26.5
2.8
8.6
0.15
5.35
0.25
0.13
2.63
1.47274.1
217.8
50.7
2.1
2.48
0.1
5.52
0.72
0.03
0.05
0.75
CIS 748.9 304.9 443.9 891.2 405.5 485.7 1021 466.8 554.2WT/ACC/MOL/2
Page44
Country1993 1994 1995
Total Export Import Total Export Import Total Export Import
1 2 3 4 5 6 7 8 9 10
Germany
Italy
Great Britain
France
Belgium
Luxembourg
Denmark
Ireland
Spain
Holland
Greece
Portugal38.31
14.74
6.07
5.71
2.81
0.55
0.40
5.44
4.71
11.05
1.1014.81
6.19
0.98
0.13
0
0.45
0.01
5.53
0.00
0.61
0.9323.5
8.55
5.09
5.58
2.81
0.1
0.39
0.01
4.71
10.44
0.1755.30
16.44
5.58
2.10
3.90
0.10
2.03
1.30
0.31
4.54
8.83
0.2019.70
7.77
3.45
0.10
0.00
0.07
0.12
0.24
0.06
1.36
5.07
0.0535.60
8.67
2.13
2.00
3.90
0.03
1.91
1.06
0.25
3.18
3.76
0.1591.02
34.89
11.64
7.86
9.53
0.21
4.15
1.34
2.88
8.84
7.70
0.4545.44
15.6
6.16
1.39
0.12
0.19
0.45
1.57
2.29
2.71
0.2645.58
19.29
5.58
6.47
9.41
0.02
4.15
0.89
1.31
6.55
4.99
0.19
EU12 90.99 26.94 61.35 100.6 37.99 62.64 180.5 76.18 104.3
Austria
Finland
Sweden3.48
1.53
2.230.61
0.01
1.052.87
1.52
1.182.90
0.40
2.201.00
0.05
0.001.90
0.35
2.2017.72
1.88
1.289.94
0.02
0.067.78
1.86
1.22
EU15 98.23 31.31 66.92 106.1 39.04 67.09 201.4 86.20 115.2
Romania
Bulgaria
Hungary
Czech/Slovakia
Yugoslavia172.4
21.39
9.98
1.63
1.25104.1
16.48
3.01
1.01
0.1968.41
4.91
6.97
0.62
1.06124.9
20.50
9.54
2.95
1.7083.40
10.40
2.58
1.56
0.4042.50
10.10
6.96
1.39
1.30159.6
53.24
14.22
8.13
2.59103.7
21.37
5.72
3.65
1.0555.95
31.87
8.5
4.48
1.54
Central &Eastern
Europe209.3 125.4 83.83 167.4 100.8 66.55 244.9 138.4 106.5
Switzerland
Albania
Lithuania
Estonia9.29
0.21
5.67
3.765.95
0.21
3.66
1.983.34
0
2.01
1.784.70
0.30
8.24
2.242.30
0.30
4.09
1.132.40
0
4.15
1.1112.41
0.67
17.14
3.974.1
0.67
9.8
2.318.31
0
7.34
1.66
Europe (total) 329.9 170.4 159.6 294.2 150.65 143.56 488.2 246.1 242.1
USA
Canada
China
Japan
Others15.06
2.16
0.72
0.22
13.900.89
0.15
0.06
0.00
6.5614.17
2.01
0.66
0.22
7.3420.98
2.40
5.80
24.891.79
1.82
0.30
8.2019.19
0.58
5.50
16.6718.62
2.21
0.56
1.34
39.547.94
1.61
0.4
0.07
22.5010.68
0.6
0.16
1.27
17.04
TOTAL 1110 482.9 627.9 1239 568.3 671.2 1571 745.5 826.1WT/ACC/MOL/2
Page45
ANNEX 2
LIST OFLAWS AND LEGAL ACTS
1. Laws andlegalactsregulating theactivity ofthecustoms authorities; responsible agencies.
- Law "OntheCustoms code" -No.1321 -XII,9.03.1993
- Law "OnAmendments totheCustoms Code "-No.44-XIII12.04.1994
Responsible agency -Customs Department
2. Laws andlegalactsrelating tonon-tariff regulation ofimports, exports andtrade intransit,
rules oforigin: responsible agencies.
- Law"OnImproving theMechanism ofRegulation ofForeign Economic Relations" -No.371
6.06.1995.
- Law"OnSanitaryandEpidemiologicalProtectionofthePopulation"-No.1513-XII16.06.1993
- Decision oftheGovernment oftheRepublic ofMoldova "Onpreventing theimportant illicit
marketing ofchemical andbiological products intended tobeusedinagriculture andforestry
ontheterritory oftheRepublic ofMoldova" -No.740 -2.11.1995
Responsible agencies -Ministry ofEconomy (Department ofForeign Economic Relations), Department
ofStandardisation, Metrology andTechnical Surveillance.
3. Laws andregulations relating toforeign investment: responsible agencies.
- Law"OnForeign Investments" -No.998-XII1.04.1992
- Law"OnAmendments totheLawonForeign Investments" -No.197-XIII27.07.1994, No.
92XIII11.05.1994, No.321-XII16.03. 1993
Responsible agency -TheAgency offoreign investment oftheMinistry ofEconomy
4. a)Other lawsdealing witheconomic issues thataffect trade:
- Law"OntheGovernment oftheRepublic ofMoldova" No.64-XII 31.05. 1990
- Law"OnExport andImport Reglementation ofGoods andServices" No.188-XII 26.07.1990;
- Law"OnBanks andBanking Activity" No.601-XII 12.06.1991 (with amendments);
- Law"OntheNational Bank ofMoldova" No.599-XII 11.06.1991 (with amendments);
- Law"OnForeign Economic Activity";
- Law"OnForeign Investment" No.998-XII 01.04.1992 withthefollowing amendments:
- Law"OnEntrepreneurship andEnterprises" -No.845-XII3.01.1992
- Law"OnCooperation" -No.864-XII, 16.01.1992
- Law"OnEnterprisesandEntrepreneurialActivity"No.845-XII03.01.1992(withamendments);
- Law"OnInsurance" No.1508-XII 15.06.1993 (with amendments);
- Law"Provisions withRegard toSanitary-Epidemiological Security ofthePopulation ofthe
Republic ofMoldova"; No.1513-XII ,16.06.1993
- Law "On Consumers Rights Security"; No.1453, 25.05.1993WT/ACC/MOL/2
Page46
- Law No.92-XIII 11.05. 1994
- Law No.321-XIII 13.12. 1994
- Law No.197-XIII 27.07. 1994
- Law"OnMonopoly Activities Limitation andDevelopment ofCompetition"No. 101-XIII
13.05.1994;
- Law"OnCopyright andNeighbouring Rights" No.293-XII, 23.11.1994"
- Law"OnAmendments totheLegislative Acts" No.51-XIII, 14.04.1994
- Law"OnLegal Status ofForeigners andPersons without Citizenship intheRepublic, of
Moldova" No.276-XIII 10.11. 1994;
- Law"OnAdministrative Infringements" No.51-XII, 14.04.1994, art.III.
- Law"OnEntry andStayintheRepublic ofMoldova ofForeigners andPersons without
Citizenship"
- Law"OnExcise tax"-No.34727.12.1994
- Law"OnVAT "-No.96-09.12.1995
- Law"OnCommercial secret" -No.126-10.11.1995
- Law"OnFinancial Institutions" No.550-XIII 21.07.1995;
- Law"OnAudit" No.729-XIII 15.02. 1996;
- Penal Code Art.141"Violation ofcopyright", Art.512"Violation ofproperty right on
intellectual property"
Responsible agencies :Ministry ofFinance, Ministry ofEconomy, Ministry ofagriculture, AGAPE.
b)Decisions oftheGovernment oftheRepublic ofMoldova:
- Decision No.65915.09.1994 "OnIssue andTurnover ofBills"
- Decision No.71923.09.1994 "OnMinistry ofTelecommunications andInformatics"
- Decision No.71323.10.1995 "Onthecopyright owner 'sremuneration fortheuseofcopyright
andneighbouring rights"
- Decision No.49417.07.1995 "Ontheestablishment ofaprovisional National Register of
Computer Software"
- Decision No.52424.07.1995 "Ontheadministration onacollective basisofpatrimonial rights
ofholders ofneighbouring rights"
c)Decisions oftheParliament oftheRepublic ofMoldova ontheaccession tointernational
conventions:
- Decision No.1318-XII 02.03.1995 "Ontheaccession totheWorld Convention onCopyright"
(6Sep.1952)
- Decision No.510-XII 22.06. 1995 "Ontheaccession totheConvention fortheProtection of
Performers, Producers ofPhonograms andBroadcasting Companies" (Rome 1961)
- Decision No.511-XII 22.06. 1995"Ontheaccession totheBerne Convention fortheProtection
ofLiterary andArtistic Works" (Paris Act1971)
d)Normative Statements totheLaws
- Statute oftheState Agency onIndustrial Property Protection ofMoldova
- Provisional Statute onIndustrial Property Protection ofMoldova
- Provisional Statute onPatent Attorneys ofMoldovaWT/ACC/MOL/2
Page47
- Instructions onCompiling andFiling ofApplications forGranting Patents onInvention
- Instructions onCompiling andFiling ofApplications fortheRegistration ofUtility Models
- Instructions onCompiling andFiling ofApplications fortheRegistration ofTrademarks and
Service Marks
- Instructions onCompiling andFiling ofApplications fortheRegistration ofApplications of
Origin ofGoods
- Instructions fortheApplication oftheProvisional Statute forIndustrial Property Protection
inMoldova Concerning Inventions onwhich thePatent ontheResponsibility oftheApplicator
isRequested
- Instruction fortheApplication oftheProvisional Statute forIndustrial Property Protection in
Moldova Concerning Industrial Designs.
- Instructive-methodicalindicationswithregardtoStatesanitarycontrolofimportedfoodproducts
andrawmaterials, No.3177-84;
- Medico-biological requirements andsanitary rateswithregard toimported foodproducts and
rawmaterials, No.5061-89.
5. a)Existing laws, regulations oradministrative guidelines which significantly affect trade
inservices
- Law"OnBanks andBanking activities -No.601-XII12.06.1991
- Law"OnRent"- No.86114.01.92
- Law"OnEmployment"- No.878-XII16.01.92
- Law"OnAccounting" -No.32125.05.1995
b)Publications orsources ofinformation, concerning measures ofgeneral application
ofrelevance totheGATS.
- Statistical bulletin ofpublic information (Department ofStatistics),
- Annual Statistical Report (Department ofStatistics),
- Logos-Press (weekly newspaper),
- Monitorul Official (monthly newspaper),
- Business Basarabica (monthly review),
- Document (supplement totheLogos-Press newspaper).
c)Enquiry points, ifany,asforeseen inArticle IllofGATS.
Moldova atpresent hasnosuchenquiry point, andwillintroduce oneupon accession.WT/ACC/MOL/2
Page48
ANNEX 3
INFORMATION ONIMPORT LICENSING PROCEDURES
I. OUTLINE OFSYSTEMS
Atpresent there arenoquotas orother quantitative restrictions onimported goods. Asmall
range ofspecial goods issubject tolicensing. Licences forfertilizers, plantprotection substances and
similar chemicals areissued bytheMinistry ofAgriculture, allother licences bytheMinistry of
Economy. Formedication andmedical appliances anauthorization from theMinistry ofHealth is
required.
II. PURPOSES AND COVERAGE OFLICENSING
1. There isonlyonelicensing system. Thegoods listed inAnnex 3aaresubject tolicensing.
Allother goods canbeimported without licence.
2. Theabove licensing system applies togoods irrespective oftheirorigin
3. Thelicensing requirement isnotintended torestrict thequantity orvalue ofimports.
Itisissued inorder toprotect human, animal orplantlifeorhealth, theenvironment, national
security andpublic morals, andtofacilitate statemonitoring ofexternal economic activity withaview
toimprove import/ export regulation.
4. Licensing isperformed according toDecision Nr.371bytheGovernment ofMoldova on
6June1995.
TheRegulation onimport licensing establishes theprocedures forobtaining licences andcovers
import operations ofalleconomical unitsofMoldova regardless oftheirtypeofownership, registration
place anddepartmental subordination. Thepresent Regulation, being introduced byGovernment, can
beabolished byGovernment without legislative approval.
III. PROCEDURES
1. There arenorestrictions astothequantity orvalue ofimports
2. There arenoquantitative limits onimportation.
(a) Alicense canbeobtained in10daysfromthemoment ofapplication. Alicence canbeobtained
within ashorter time-limit forgoods arriving attheportwithout alicence.
(b) Alicence canbegranted immediately onrequest.
(c) There arenolimitations astotheperiod oftheyearduring which applications forlicences
forimportation canbemade.WT/ACC/MOL/2
Page49
(d) Applications forlicences areexamined byDFER, incases ofmedications, drugs, medical
equipment bytheMinistry ofHealth andincases concerning agriculture, bytheMinistry of
Agriculture.
3. Anapplication foralicence mayberefused if:
- established procedures forobtaining alicence areviolated;
- documents presented inorder toobtain alicence arenotinaccordance withthelegislation and
withtheregulation onimport licensing;
- there isaprohibition ontheimport ofthegoods concerned.
IV. ELIGIBILITY OFIMPORTS TOAPPLY FOR LICENCE
Alllegalpersons, natural andinstitutions havetherighttosolicit alicence.
V. DOCUMENTATION AND OTHER REQUIREMENTS FOR APPLICATION FOR
LICENCE
1. Inorder toobtain alicence, thefollowing documents should bepresented totheDFER ofthe
Ministry ofEconomy, ortotheMinistry ofAgriculture:
- astandard application. Asample form issubmitted withthisMemorandum;
- contract forselling/buying, concluded withtheforeign partner;
- themandate oftheapplicant organisation, given totheperson authorized toobtain thelicence;
- authorisation oftheMinistry ofHealth (formedications, drugs etc.);
- copies ofincorporation documents:
a) Registration Certificate;
b) Certificate indicating Fiscal Code;
c) Certificate indicating Statistical Code;
d) Charter.
2. Upon actual importation thefollowing documents arerequired:
- licence, ifrequired;
- contract forselling/buying, concluded withtheforeign partner;
- authorisation oftheMinistry ofHealth (formedications, drugs etc.).
3. Thelicensing feeforageneral licence is180lei(10minimum wages).
Foranexport licence totheEuropean Union thefeeis18lei(oneminimum wage). Forordinary
licenses, certificates oforigin issued onthebasis oftheGeneralised System ofPreferences, granted
toMoldova bythethird countries, thefeeis0.1% from thevalue ofimported goods, recalculated
inMoldovan national currency according totherateestablished bytheNational Bank OfMoldova
onthedayofpayment. Theissuing oflicenses andcertificates oforigin forexport toEUcountries
requires thatafeeforaninternational formshould bepayed aswell. Thecostoftheformis1DM,
recalculated innational currency.
Nopayment isrequired forimport licences concerning medication, medical equipment and
other articles formedical purposes.WT/ACC/MOL/2
Page50
4. Nodeposit oradvanced payment requirement isassociated withtheissue oflicences.
VI. CONDITIONS OFLICENSING
1. Import licenses arevalid fortheperiod indicated inthem andexpire attheendoftheyear
inwhich theyhavebeenissued.
Theapplicant canrequest thatthevalidity ofthelicense beextended. Theissuing institution
shallconfirm thenewperiod ofvalidity inwriting
2. Ifthelicense isnotusedduring theestablished period, itiscancelled andreturned totheissuing,
institution.
Thelicense isnottransferable between importers.
4. There arenoother conditions attached totheissue ofalicense.
VII. OTHER PROCEDURAL REQUIREMENTS
1. There arenoother administrative procedures.
2. Foreign exchange isautomatically provided bybanking authorities forgoods tobeimported.
Alicense isnotrequired asacondition toobtain foreign exchange. Foreign exchange isalways
available tocover licenses issued. Theonlyformality tobeperformed inorder toobtain foreign
exchange bytheimporter istoprovide theimport contract withthesumhehastopayfortheimported
goods.
Ifthediscussion intheworking party weretoreveal anyincompatibilities ofthepresent regime
withtheWTOImportLicensingAgreement,Moldovawouldseektobringitsimportlicensingprocedures
intoline.WT/ACC/MOL/2
Page51
ANNEX 3A
GOODS SUBJECT TOLICENSING
Thefollowing. groups ofgoods aresubject tolicensing:
- weapons, ammunition, military equipment, kitstoproduce suchequipment;
- explosive substances;
- nuclear materials, technologies, equipment andinstallations toproduce suchmaterials;
- ionic radiation sources;
- drugs, psychotropic effect substances andpreparations, materials toproduce suchsubstances
andpreparations, poisons;
- precious metals, minerals, precious stones andarticles made fromthem(except forelectronic
articles thatcontain precious metals);
- lottery-type inventions, means andequipment fordifferent types oflottery; slotmachines,
fortune games;
- chemical substances (including fertilisers andplant-protection substances) andindustrial rejects
subject tointernational control;
- medicines, medical appliances andequipment.
Allother commodities canbeimported without licence.WT/ACC/MOL/2
Page52
ANNEX 3B
GOODS SUBJECT TOREGISTRATION UPON EXPORTATION
Customs Code Description
100100000 Wheat
100200000 Rye
100300000 Barley
100400000 Oats
100500000 Maize
100600000 Rice
100800000 Buckwheat
110100000 Wheat flour
110300000 Cereal groats
190200000 Pasta
230240000 Prepared animal fodder
230320000 Beet-pulp
271600000 Electrical energy
410100000 Rawhides andskins
410200000 Rawskins ofsheep orlambs
410300000 Rawskins ofswine
410422100 Bovine leather, pre-tanned, wet-blue state
410429100 Prepared bovine leather
410500000 Sheep orlambskin leather
410710100 Leather ofswine, wet-blue state
410710000 Leather ofswine
120600000 Sunflower seeds forprocessing
240100000 Unfermented tobacco
240300000 Fermented tobacco
010290350 Bulls
010290310 Cows andcalves
010290330 Cows forslaughter
010410900 Lambs, sheep, alsoforslaughter
010300000 Swine
200970000 Concentrated apple juice
040210000 Fatfreemilkpowder
170100000 Sugar
151200000 Refined andnon-refined vegetable oils
040700000 Egg
040811000 Eggyolkpowder
047070000 Waste paper
170300000 Molasses
220700000 Spirits
220400000 Win
220410000 Sparkling wineWT/ACC/MOL/2
Page53
ANNEX 4
INFORMATION ONIMPLEMENTATION AND ADMINISTRATION OFTHE CUSTOMS
VALUATION AGREEMENT
Moldova isatpresent notparty tothisAgreement andhastherefore notyettaken specific steps
toimplement itsprovisions.
1.Questions concerning Article 1:
(a) There isnoregulation referring tosalesbetween related persons.
(b) There arenospecial provisions concerning thevaluation oflostordamaged goods.
2.-4.There arenoprovisions inthenational legislation which allow theimporter anoption toreverse
theorder ofapplication ofArticles 5and6.
5. Questions concerning Article 7:
(a) Provisions formaking value determinations inaccordance withArticle 7.1havebeenmade
inGovernment Decision 99,Chapter 2.
(b) Aprovision forinforming theimporter ofthecustoms value determined inaccordance with
Article 7doesnotexist.
(c) Thefollowing prohibitions from Article 7.2aredelineated :(a)(e)(g).
6. Question concerning Article 8.2
Only C.I.F. applications arepossible.
7. Question concerning Article 9.1.
Theexchange rateispublished innewspapers, viaE-mail andisalsoavailable attheCustoms
Department.
8. Question concerning Article 10
Until now, nosteps havebeentaken toensure confidentiality.
9. Questions concerning Article 11
(a) According toDecision No.99theimporter hastherighttoappeal tosenior custom officers,
including theDirector oftheCustoms Department.
(b) Theimporter isinformed orally bythecustoms inspector andacopyofDecision No.99is
made available tohim.
10. Questions concerning Article 12
(a) (i) Relevant national lawsarepublished in"Monitorul Oficial";
(ii)-(iv) AsMoldova isnotparty totheAgreement nopublications concerning its
implementation havebeenmade.WT/ACC/MOL/2
Page54
(b) Atpresent there arenoplans forfurther publications.
11. Questions concerning Article 13
(a) Customs value isdetermined according toArt.4Decision No.99.
(b) Additional explanations todetermination ofthecustom value havenotbeenlaiddown.
12. Questions concerning Article 16
(a) National legislation doesnotcontain provisions requiring customs authorities togive
explanation inwriting.
(b) There arenofurther regulations concerning above-mentioned request.
13. Interpretative Notes
TheInterpretative Notes oftheagreement havenotbeenincluded.
14. Nospecial provisions toimplement theDecision of26April 1984ontheTreatment ofInterest
Charges intheCustoms Value ofImported Goods havebeenmade.
15. Bothcarier media bearing software aswellasthesoftware itselfaresubject tocustoms duties.WT/ACC/MOL/2
Page55
ANNEX 5
INFORMATION ONTECHNICAL BARRIERS TOTRADE
1. Foradescription ofrelevant laws, regulations, administrative orders, etc., relating to
implementation andadministration oftechnical barriers totrade seeSection IV3(b).
2. Specific information
(a) Thenames ofpublications relating todraft technical regulations orstandards and
procedures are:
- "Buletinul Standardisarii" published onceevery three months (Moldova);
- "Standardizarca" monthly (Romania);
- "Standarti iKacestvo" monthly (Russia).
(b) OnceMoldovahasbecomeamemberoftheWTOanenquirypointasforeseeninArticles
10.1and10.3willbesetup.
(c) Anagency dealing withconsultations doesnotexist.
(d) Anagency dealing withother specific functions foreseen intheAgreement doesnot
exist
(e) Theresponsibility isnotdivided among twoormore authorities.
(f) AccordingtotheLaw'OnStandardisation',Art.11(c),theNationalFundforDocuments
onStandardisation hasthedutytopublish alltheinformation regarding thissphere.WT/ACC/MOL/2
Page56
ANNEX 6
Annex 6doesnotapply asthere isnostate-trading inMoldova, asdefined inArticle XVII.WT/ACC/MOL/2
Page57
ANNEX 8A
MOLDOVA 'SFOREIGN TRADE AGREEMENTS
Table No.1
M-F-N 6National Treatment1
Nr Country Date ofentry into. force
1. Austria August 1,1995
2. China January 18,1992
3. Czech Republic &Slovakia signed onJune30th1994
4. Bulgaria January 1,1995
5. Hungary April 7,1993
6. Latvia December 4,1992
7. Ukraine 09.12.1994
8. Turkey June7,1994
9. Lithuania signed onApril 5th1996
10. Poland signed onFebruary 10th1992
11. India March 19,1993
M-F-N 6National Treatment2
1. USA signed on19thJune1992
2. Switzerland signed onNovember 30th1995
3. Estonia October 31,1995
4. European Union (Interim Agreement onTrade &
Trade-Related Matters)1May1996
5. European Union (Partnership &Cooperation
Agreement)*
Other trade agreements3
1. Tajikistan February 10,1995
2. Uzbekistan March 30,1995
3. Kyrgyz Republic February 10,1995
4. Iran November 11,1994
FreeTrade Agreement
1. Armenia *
2. Turkmenistan April 1996
3. Kyrgyz Republic **
4. Ukraine May20,1996
5. Belarus October 4,1994
6. Uzbekistan *
7. Azerbaijan April 16,1996
8. Russia March 3,1993
9. Kazakstan February 23,1996
10. Romania January 1,1995WT/ACC/MOL/2
Page58
* ratified bytheParliament oftheRepublic ofMoldova butnotyetbytheother party
** noonehasratified theagreement
1 These agreements provide forGeneral Most-Favoured-Nation Treatment asdefined inArticle 1
ofGATT '94.
2 Along withM-F-N clause these agreement provide alsoforNational Treatment onInternal
Taxation andRegulation asdefined inArticle IIIofGATT '94.
3 These agreements donotprovide forneither m-f-n nornational treatment clause andcontain
onlysome preferential trade provisions specified inPartBofthepresent Annex.
LIST OFCOUNTRIES WITH WHICH MOLDOVA HAS SIGNED AGREEMENTS ON
ENCOURAGEMENT AND RECIPROCAL PROTECTION OFINVESTMENTS
Table N2
Nr Country Date Nr Country Date
1. Hungary 19.04.1995 8. Romania 14.08.1992
2. Finland 25.08.1995 9. USA 21.04.1993
3. Turkey 14.02.1994 10. China 06.11.1992
4. Bulgaria 17.04.1996 11. Netherlands 26.09.1995
5. Poland 15.11.1994 12. Switzerland 30.11.1995
6. Germany 28.02.1994 13. England 19.03.1996
7. Kuwait 04.02.1993
There aresome more agreements thatareonlyinitialled atthismoment:
- Trade agreements withCuba andGreece.
- Agreement oninvestments promotion withGreece.
Source: Department ofForeign Economic Relations oftheMinistry ofEconomyWT/ACC/MOL/2
Page59
ANNEX 8B
PARTS OFTRADE AGREEMENTS WHICH CONTAIN PREFERENTIAL TRADE
PROVISIONS. RECIPROCITY PROVISIONS AND DETAILS OFANY OTHER
PREFERENTIAL TREATMENT.
1. Trade Agreement withIranmentioned inPartAabove provides initsArticle 10thatinorder
topromote trade relations between twocountries, Contracting Parties haveagreed toconsider the
possibility ofgranting eachother mutual nontariff facilities.
2. Article 7ofTrade Agreement withBulgaria mentioned inPartAabove states:
Parties willpermit incompliance withtheirnational legislation exemption fromcustoms duties
onimport andexport ofthefollowing categories ofgoods:
- samples ofmerchandise andinformation materials forthepurpose toconclude contracts or
forthepublicity purpose;
- spare parts ofusedforservice purposes within theguarantee period ofthesoldgoods;
- samples imported intothecountry andthegoods temporarily imported fornon-commercial
purpose tobeusedforexhibitions andfairs;
- tools andspare parts fortheservices performed ontheterritory ofeither party;
- marked package orbottles tobereconditioned.
3. Trade Agreement withUkraine (09.12.1994) states:
Article 4
Parties haveagreed thatnoonewillapply customs restrictions informs ofanyexport orimport
taxes andduties onthegoods according tothenomenclature andforthequantities indicated inannual
Annexes thatareintegral parts oftheAgreement.
Article 6
Parties haveagreed toensure freetransit through theirterritories ofgoods originating from
theterritory ofeither Party orthirdcountries anddestined fortheterritory oftheother Party orany
other thirdcountry.
Parties willrefrain from imposing anyregional orlocalduties ortaxes without preliminary
consultations.
4. There isapractice within CIStoconclude bilateral annual trade agreements which
provide forsome preferences relating tothetrade withmost important goods forparties concerned
andassome FreeTrade Agreements arenotyetinforce thispractice wasextended alsototherelations
between Moldova andother countries ofCIS. ThisisthecasewithTheKyrgyz Republic, Tajikistan
andUzbekistan, however suchagreements were concluded onlyfor1995.
Themain provisions ofthese agreements stipulate thattheparties willdetermine thelistsof
themostimportant goods tobeexchanged thatwillbeconsidered asexport quotas under theexemption
from anycustoms duties either onexport orimport. Aswellparties agreed topromote acommon
customs andprice policy inorder tocreate thenecessary conditions forfurther establishment offree
trade.