RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SPEC/MOL/4/Rev.1
8 September 1999
(99-3735)
Working Party on the
Accession of Moldova
DRAFT REPORT OF THE WORKING PARTY
ON THE ACCESSION OF MOLDOVA
Revision
I. INTRODUCTION
1. The Government of Moldova applied for accession to the General Agreement on Tariffs and
Trade (GATT 1947) in November 1993. Having regard to the decision adopted by the General
Council of the World Trade Organization (WTO) on 31 January 1995, the existing Working Party onthe Accession of Moldova was transformed into a WTO Accession Working Party. The terms ofreference and the membership of the Working Party were reproduced in documentWT/ACC/MOL/7/Rev.2.
2. The Working Party met on 17 June 1997, 18 March 1998, 16 April, 19 July and [          ] 1999
under the chairmanship of Mr. M. Kumar (India).
II. DOCUMENTATION
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of Moldova (WT/ACC/MO L/2 and Addenda 1 and 2) and the questions
submitted by Members of the foreign trade regime of Moldova, together with the replies theretoWT/ACC/MOL/3 and Corr.1 and A dd.1 and 2; WT/ACC/MOL/4 and A dd.1 and Corr.1;
WT/ACC/MOL/8 and Add.1; WT/A CC/MOL/9 and WT/ACC/MOL/11 and other information
provided by the Moldovan authorities  (WT/ACC/MOL/5 and Corr.1 and Corr.2, WT/ACC/MOL/6,
WT/ACC/MOL/7 and Corr.1 and Corr.2, and WT/A CC/MOL/10, and 12-22). The Government of
Moldova made available to the Working Party the following documents:
- Laws and Resolutions
- Law "On the Customs Code" - No. 1321–XII of 9 March 1993;
- Law "On Amendments to the Customs Code "- No. 44-XIII of 12 April 1994;
- Law "On Sanitary and Epidemiological Protecti on of the Population" - No.1513-XII of 16 June
1993;
- Law "On Foreign Investments"  - No. 998–XII of 1 April 1992;WT/ACC/SPEC/MOL/4/Rev.1
Page 2
- Laws "On Amendments to the Law on Foreign Investments" - No. 197-XIII of 27 July1994,
No. 92-XIII of 11 May1994, No. 321–XII of 13 December 1994;
- Law "On the Government " - No. 64-XII of 31 May 1990;
- Law "On Export and Import Regulation of Goods and Services" - No. 188-XII of 26 July 1990;
- Law "On Banks and Banking Activity" - No. 601-XII of 12 June1991, which was abrogated
through the Law “On Financial Institution”;
- Law “On Financial Institution” – No.550-XIII of 21 July 1995;
- Law "On the National Bank of Moldova" - No. 599-XII of 11 June 1991 (with amendments);
- Law "On Foreign Economic Activity" – No. 849-XII of 3 January 1992;
- Law “On State Budget 1999;
- Law “On Licensing Certain Types of Activities” – No.332-XII of 26 March 1999;
- Law "On Cooperation" - No. 864-XII of 16 January 1992;
- Law "On Enterprises and Entrepreneurial Ac tivity" - No. 845-XII of 3 January 1992 (with
amendments);
- Law "On Insurance" - No. 1508-XII of 15 June 1993 (with amendments);
- Law "On Consumers Rights Security"- No. 1453-XII of 25 May 1993;
- Law "On Monopoly Activities Limitation and Development of Competition" - No.906-XII of
29 February 1992;
- Law "On Amendments to the Legislative Acts" - No. 51-XIII of 14 April 1994;
- Law "On Legal Status of Foreigners and Pe rsons without Citizenship in the Republic, of
Moldova" - No.276-XIII of 10 November 1994;
- Law "On Entry and Stay in the Republic of Moldova of Foreigners and Persons without
Citizenship" – No. 269-XII of 9 November 1994;
- Law "On Excise tax" - N o. 347-XII of 27 December 1994;
- Law "On VAT " - No. 264-XII of 9 December 1995;
- Law "On Audit" - No. 729 -XIII of 15 February 1996;
- Law "On Rent"- No. 861-XII of 14 January 1992;
- Law "On Employment"- No. 878–XII of 16 January 1992;
- Law "On Accounting" - No. 426 of 4 April 1995;
- Law “On Trademarks and Appellations of Or igin” - No. 588-XIII of 22 September 1995;
- Law “On Copyright and Ne ighboring Rights” - No. 293 -XIII of 23 November 1994;
- Law “On Patents for Inventi ons” - No. 461-X III of 18 May 1995;
- Law “On Standardization” – No. 590-XIII of 22 September 1995;
- Law “On Audiovisual Services ” – No.603-XIII of  3 October 1995;
- Law “On Plant Variety Protec tion” – No. 915 of 11 July 1996;
- Law “On the Protection of Industrial Designs” – No. 991-XIII of 15 October 1996;
- Law “On Securities” – No.1427-XIII of 18 May 1993;
- Law “On Commercial Secrets” - No. 171-XIII of 6 July 1994;
- Law “On Bases of Tax System” – No.1198-XII of 17 November 1992;
- Law “On Profit Tax of the Enterprises” – No.1214-XII of 2 December 1992;
- Law “On the Road Fund” - No. 720-XIII of 2 February 1996;
- Law “On Customs Tariff” – No.1380-XIII of 20 November 1997;
- Law “On Budget 1998” – No. 1446-XII of 27 December 1997;
- Law “On Vineyard and Vine” - No. 131-XIII of  2 July 1994;
- Law “On Veterinary Activity” - No. 1538-XII of 23 June 1993;
- Law “On Privatization Programme for 1997-1998” - No. 1217-XIII of 25 June 1997,
(amended by Laws No.1566-X III of 26 February 1998; N o.187-XIII of 6 November 1998;
No.237-XIV of 23 December 1998; No. 239-XI V of 23December 1998 and No. 253-XIV of
24 December 1998;
- Law “On Phytosanitary Quarantine” - No. 506-XIII of 22 June 1995;
- Law “On Government Procurement”  - No. 1166-XII of 30 May 1997; and
- Law “On Free Enterprise Zone "Expo-Business-Chisinau" - No. 625-XIII of 3 November
1995, amended by 1517-XIII of 18 February 1998.WT/ACC/SPEC/MOL/4/Rev.1
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- Law and Agreements on local authorities
- Law On the Legal Status of Gagauzia (Gag auz-Yeri) - No. 344-XIII of 23 December 1994;
- Memorandum on the Basis for Normalization of Relations between the Republic of Moldova
and Transnistria signed in Moscow on 8 May 1997;
- Agreement on the organizational basis of soci al-economical collaboration between the Republic
of Moldova and Transnistria signed on 10 November 1997.
- Decrees
- Decree "On the Promulgation of the 1995 Finance Act";
- Decree "On the Promulgation of the 1996 Finance Act";
- Decree of the Parliament No. 1430-KP of 18 May 1993 Concerning the Introduction of the
Securities Operations Tax Law;
- Decisions and Instructions and other legislative acts
- Governmental Decision No.740 of 2 November  1995 "On preventing the important illicit
marketing of chemical and biolog ical products intended to be used in agriculture and forestry on
the territory of the Republic of Moldova";
- Governmental Decision No. 371 of  6 June 1995 “On Improving the Mechanism of Regulating
External Economic Relations”;
- Governmental Decision No. 340 of 2 June 1993 “On the Approval of  General Provisions On the
Structure of Expenses On Production and Realiz ation of Goods (Works, Services), Included in
its Cost Price and On Order of Forming the Financial Outcomes of Enterprises”;
- Summary “On the Order of Calculation of the Ta x on Banks and the Order of Payment of It to
the Budget (16 January 1994)”;
- Government Decision No. 859 of 13 Augu st 1998 “On Licensing Certain Types of
Activities”, which was abrogated thorough the Law No.332 of 26 March 1999 “On Licensing
Certain Types of Activities”;
- Governmental Decision No. 1154 of 15 De cember 1997 “On Optimization of Control
Services Activity at State Customs”, ame nded by Governmental Decisions No.168 of 16
February 1998; No. 112 2 February 1999;
- Government Decision No. 760 of 10 Novemb er 1995 “On Production of Wine and Other
Wine Products with Appellation of Origin”;
- Government Decision No. 378 of 22 June 1998 “On Veterinary Statute of the Republic of
Moldova”;
- Government Decision No. 777 of 13 Augu st 1998 “On Improving the Mechanism of
Regulating Foreign Trade (Import Licensing)”amended by the Government Decision No. 76
of 22 January 1998 and Government Decision No. 716 of 30 June 1998;
- Government Decision No. 697 of 10 October 1995 “On Establishment of State Services of
Phytosanitary Quarantine”, with amendments;
- Penal Code Art. 141 "Violation of copyright" , Art. 512 "Violation of property right on
intellectual property";
- Governmental Decision No. 659 of 15 Septem ber 1994 "On Issue and Turnover of Bills";
- Governmental Decision No.719 of 23 September 1994 "On Mini stry of Telecommunications
and Informatics";
- Governmental Decision No. 363 of  25 June 1996 “On the Organiza tion of Standardization and
Metrology Activities”;
- Governmental Decision No. 713 of 23 October 1995 "On the copyright owner's remuneration
for the use of copyright and neighboring rights";
- Governmental Decision No. 494 of 17 July 1995 "On the establishment of a provisional
National Register of Computer Software";WT/ACC/SPEC/MOL/4/Rev.1
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- Governmental Decision No. 524 of 24 July 1995 "O n the administration on a collective basis of
patrimonial rights of holders of neighboring rights";
- Governmental Decision "On the accession to th e World Convention on Copyright" (6 Sep.
1952);
- Governmental Decision "On the accession to the Convention for the Protection of Performers,
Producers of Phonograms and Broa dcasting Companies" (Rome 1961);
- Governmental Decision "On the accession to the Be rn Convention for the Protection of Literary
and Artistic Works" (Paris Act 1971);
- Governmental Decision No. 743 of 31 December  1996 “On Statute of the State Agency on
Industrial Property Protection of Moldova”;
- Provisional Statute on Industrial Property Protecti on of Moldova;
- Provisional Statute on Pate nt Attorneys of Moldova;
- Instructions on Compiling and Filing of Applications for Granting Patents on Invention;
- Instructions on Compiling and Filing of Applications for the Registration of Utility Models;
- Instructions on Compiling and Filing of Applica tions for the Registration of Trademarks and
Service Marks;
- Instructions on Compiling and Filing of Applications for the Registration of Applications of
Origin of Goods;
- Instructions for the Application of the Provis ional Statute for Industrial Property Protection in
Moldova Concerning Inventions on which the Pate nt on the Responsibility of the Applicator is
Requested and Instruction for the Application of  the Provisional Statute for Industrial Property
Protection in Moldova Con cerning Industrial Designs;
- Instructive-methodical indications of the Ministry of Finance regarding to State sanitary control
of imported food products a nd raw materials, No.3177-84;
- Medico-biological requirements and sanitary ra tes with regard to imported food products and
raw materials, No. 5061-89;
- List of goods for which certifi cation is mandatory upon importation;
- Conception of the Tax Reform;
- Governmental Decision No.99 of 27 Fe bruary 1996 “On Customs Valuation”;
- Governmental Decision N o.658 of 20 September 1995 “On the Mechanism of Public
Procurement”;
- Rules of the Ministry of Finance “On the Issue of Licenses for Insurance Services”;
- List of Companies Registered in the St ate Register as Major Domestic Producers;
- List of Products for which certification is pe rmitted on the basis of manufacturer's declaration;
- Annex 5 to the Law No. 390-XIII of 15 March 1 995 “On the State Privatization Programme for
1995-1996”;
- Import Customs Tariff of the Republic of Moldova;
- List of Internal and Exte rnal State Guarantees; and
- List of enterprises in which the State still owns over 25 per cent.
- Draft laws and regulations
- Draft Law on Certification;
- Draft Law on Anti-dumping, Countervail ing Duties and Safeguard Measures;
- Draft Amendment to the Law on Standardization No. 590-XII of 22 September 1995;
- Draft Amendments to the Law on Consumer Rights Protection No. 153-XII of 25 May 19993;
- Draft Law on Technical Barriers to Trade;
- Draft Amendments to the Law on the Protection of Industrial Designs No. 991-XIII of 15
October 1996;
- Draft Law on Utility Models;
- Draft Government Decision “On the special provisions regarding the border measures on
Protection Industrial Property”; andWT/ACC/SPEC/MOL/4/Rev.1
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- Draft Amendments to the Government Decision No. 697 of 10 October 1995 “On Supplement
to the Statute of the State Services on Phytosanitary Quarantine”.
- Free Trade Agreements and other Agreements:
- Armenia;
- Azerbaidjan;
- Belarus;
- Kazakstan;
- Kyrgyz Republic;
- Romania;
- Russian Federation;
- Turkmenistan;
- Ukraine;
- Uzbekistan;
- Trade Agreement Between the Government of the Republic of Moldova and the Government of
the Islamic Republic of Iran;
- Moldova-European Community Interim Agreement On Commerce and Commercial Affairs and
Agreements for coal, steel and atomic energy;
- Agreement between the European Economic Community and the Republic of Moldova on
Trade in Textile Products, initialed at Brussels on 14 May 1993.
- Introductory statements
4. In an introductory statemen t, the representative of Moldova said that since the
declaration of independence Mo ldova had vigorously pursued free market reforms within a
democratic framework, notwithstanding political and economic difficulties. Fuller integration intothe world economy and the continuing diversific ation of Moldova’s economic relation with other
countries were central objectives of the Gov ernment’s reform efforts. The Government of
Moldova believed that these objectives could on ly be attained thro ugh trade policies that
emphasized specialization on the basis of intern ational comparative advantage. It was for this
reason that Moldova attached priority to it s accession to WTO a nd wished to complete
negotiations for membership at  the earliest opportunity.
5. The representative of Moldova also stated that Moldova had achieved considerable results in
transforming a centrally planned economy to a market-based economy since it had declaredindependence in 1991. The strategic objective of the economic policy of Moldova had been a transitionto a market economy and the country's integration into the international economic community. TheConstitution of Moldova adopted by the Parliament in July 1994 stated: "The economy of the country is
market and society oriented, based on private and public property and free competition". Article I state
that Moldova is a democratic State regulated by Law. Article 9 ensures private property rights and
Article 126 defines the general characteristics of th e economy as socially oriented and based on private
and public property rights and free market principles . He noted that Moldova continued to be a countryWT/ACC/SPEC/MOL/4/Rev.1
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in transition whose economy was undergoing a process of  structural adjustment in order to correct an
excessive dependence on primary production. Initially in flation had been brought down to an average
monthly rate of 1.1 per cent in April 1996 from 32 per cent in February 1993. The budget deficit in 1995had amounted to 4.9 per cent of GDP. The exchange rate of the Lei, introduced in 1993, wasapproximately 4.5 Lei to the US dollar in May 1995.  Following a period of stabilization in the first
quarter of the 1999, the currency had again come  under pressure in May/June depreciating
steadily to around MDL 12 per US$1, before recovering somewhat to around MDL 11 per US$1
in early July 1999. The authorities were convinced of the appropriateness of a free, market-
determined float exchange regime and rema ined committed to maintaining current
international transactions free of any restrictions that could run counter to the obligations
under Article VIII, sections 2, 3 and 4 of the IMF Articles of Agreement.  However, this period
was characterized by an acute lack of funds in the banking sector followed by the massivedepreciation of the Moldovan Lei and a growing inflation. This situation was linked with the financialcrisis in the region and current developments in the financial market. The value of the Moldovan Leihad dropped by more than 65 per cent against the US dollar. Nevertheless, the real and financial
shock from the economic crisis in Russia and the region had continued to weigh heavily on the
Moldovan economy as evidenced be a collapse of 45 per cent in exports in the first half of 1999.
6. Members of the Working Party welcomed Moldova's application for accession to the WTO,
noting that Moldova had been pursuing economic reform and trade liberalization decisively. Theyexpressed strong support for the early accession of Moldova on the basis of comprehensive market-access commitments and the early implementation of the WTO Agreements.
III. ECONOMIC POLICES
- Monetary and fiscal policies
7. In response to requests for information, the representative of Moldova said that all the key
sectors, namely agriculture, manufacturing industry and construction had registered a decline of
output in 1999 over a similar period in 1998. Private agriculture was becoming increasingly importantin Moldova, so was farming restructuring. The info rmation for the first half of 1998 showed that the
number of registered companies with foreign participation had been rising quite fast. Figures of 1998showed that the employment level had dropped by 7.4 per cent compared to a year earlier. This was afurther decline over the first half of 1998. Agriculture and manufacturing had shown a decline of 11per cent over the same period, with wholesale and retail trade at 15.5 per cent and construction at 16.6WT/ACC/SPEC/MOL/4/Rev.1
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per cent lower than a year ago. The dependence on imported goods and services had been steadily
growing, from 51 per cent of the GDP in 1993 to 77 per cent in 1997. The share of imports from non-CIS countries had increased, particularly with regard to machinery and equipment. Trade with CIScountries had been showing a reverse pattern. The trade deficit with non-CIS countries during 1998had reached US$363.8 million. In 1998, the total external debt had reached US$1.3 billion. Theaccumulated arrears on the government’s debt servicing had risen to US$68.4 million by the end of1998. He explained that the State budgetary expenditure had increased because payments were
transferred from the budget of the Central Government to the budgets of local authorities and not as
subsidies to enterprises. Local authorities did not have the right to grant subsidies.
8. The representative of Moldova added that the Government was no longer granting credits to
economic agents. However, the Government was providing loan guarantees, issued against a riskpremium of at least 5 per cent of the principal amount of the loan, which was paid into the Risk Fund.State guarantees could only be issued up to a total value not exceeding the amount in the Risk Fundset up by the Law on State Debt and State Guar antees (No. 943-XIII of 18 July 1996, promulgated
under No. 115-P of 12 November 1996). Contributions to the Risk Fund were drawn from the Budget
and from beneficiaries of State guarantees. In 1997 MLD 75 million had been issued as internal
guarantees and US$9 million as external ones. In 1998 the amount of MLD 100 million has been
issued as internal guarantees and the amount of US$39 million as external guarantees for the EBRDloans. It was expected that with the ongoing privatization of the energy sector, the contributions of theBudget to the Risk Fund would be phased out. The is suance of the State guarantees was not linked to
export performance or import substitution requirements.
9. The representative of Moldova noted that 1998 had been a very difficult year for Moldova. By
the last quarter of 1998, the combination of weak public finances, a problematic energy sector, and thefall of the Russian market produced an acute economic crisis in the country. The crisis wascharacterized by capital flight, a depreciating exch ange rate, international reserves that fell to
critically low levels, rising expenditure arrears and budget financing coming only through central
bank credit.  The economic growth had again turned negative in 1998, dropping by 8.5 per cent
and stood at MDL (Moldovan Lei) 8,804 million, la rgely because of the severe impact on exports
of the crisis in Russia.  Both industrial and agricultural output dropped in 1998. At the same time,
final consumption constituted more than 102 per cent of GDP, with the trade deficit growing from15.4 per cent of GDP in 1997 to 24 per cent last year. 1998 was the first year since independencewhen both export and import volumes registered a reduction, exports by 27 per cent and imports by 12per cent as compared with 1997. The pattern of trade had changed with exports to CIS countries in thesecond half of 1998 only one half the levels recorded during the same period of 1997. The crisis inWT/ACC/SPEC/MOL/4/Rev.1
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Russia had not only influenced output through the collapse of Moldova's major export market, but
also put pressure on the Lei causing the annual inflation rate for 1998 to stand at 18.2 per cent, endingthe excellent anti-inflation record of the previous years.
10. 
Years of easy financing, especially foreign,
and slow and incomplete structural reforms had resulted in excessive budget deficits and increased
indebtedness of public sector. The figures for the 1998 budget proved unrealistic and called forconsiderable revisions. In the second half of 1998, the Government had to cut spending in order toensure the resumption of drawing from IMF and to accommodate its limited financing options. Thedrastic reduction in spending was also necessitated by the sharper than expected reduction in realoutput and therefore of revenue inflows. A large item of payment was the public debt service, whichin 1998 reached MDL 421.2 million including MDL 182.4 million for external debt servicing. The
share of public debt service in the consolidated budget expenditure increased to 13.9 per cent in 1998.
Capital investment, by contrast, had remained at  a stagnant, low proportion of public expenditure.
Both 1998 and 1999 were considered as years with highest debt-service payments. In December 1998Moldova managed to repay the principal of a Merill Lynch private placement by reducing its foreigncurrency reserves. However, in 1999 Moldova had been due to repay considerable amounts for theGazprom debt to Russia and Eurobonds (US$7.45 million). The debt payment to Gazprom wasmissed.
11. In view of this difficult situation the Govern ment and the National Bank of Moldova (NBM)
was seeking to stabilize the economy and avoid an inflationary spiral and further depreciation of thecurrency, continue restructuring and therefore resume growth, avoid a default on treasury bill
redemption, renegotiate external debt and external debt arrears, and create a stable and credible policy
environment to restore confidence and growth. The 1999 budget that was approved by the ParliamentWT/ACC/SPEC/MOL/4/Rev.1
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in December 1998 called for spending cuts in all major areas. It met the IMF’s fiscal austerity
requirements, and opened the way for resuming IMF funding. In January 1999 the IMF released aUS$35 million tranche from a three-year EFF. However, this budget was built on the assumption ofone per cent growth in real output in 1999, and an average exchange rate of MDL 11 per US$1. Bothassumptions may prove to have been overly optimistic. In mid-January 1999 the National Bank ofMoldova approved a monetary and credit policy for 1999. The target of this policy was to reduce theinflation rate from 18.2 per cent to 13-15 per cent. The programme envisages that by the end of 1999
the money stock should be increased by 35 per cent and reach the level of MDL 2.29 billion,
monetary base by 24 per cent to the level of MDL 1.23 billion, and the volume of lending that goesdirectly to the national economy by 18 per cent to the level of MDL 2.1 billion. In order to implementthis it was planned to diminish the bank liquidity ratio from 0.94 to 0.89 and to gradually reduce theobligatory reserve ratio back to 8 per cent from 15 per cent. The last measure became necessary inorder to ease the pressure on an already fragile banking system. As a result of resumed IMF lending,international reserves had risen, and were expected  to rise again with disbursement of $35 million
from the World Bank. The low levels of reserves would force the NBM to continue its non-intervention policy, and its relative inability to protect the Lei against further pressure.
Since reaching its low point in December 1998, the
Lei had succeeded in remaining relatively stable through January and February 1999. Nevertheless in
March one could observe the cash exchange rate to decline much faster than the official rate, plungingto MDL 10.3 per US$1. This made it evident that the Lei remained vulnerable to shocks, either due to
debt crisis in Moldova or to further real depreciation in the currencies of its major trading partners.
12. The representative of Moldova further noted that external debts had reached US$1.35 billion
or approximately 140 per cent of GDP. Debt servicing difficulties were severe (in the first quarter of1999 Moldova had missed a principal payment to Gazprom). However, further external financing wasWT/ACC/SPEC/MOL/4/Rev.1
Page 10
essential, and Moldova was seeking alternative sources of financing. The EU had made EUR 15
million available. The World Bank would provide up to US$60 million, including US$35 millionfrom a structural adjustment programme suspended in 1997, and a further US$25 million through theInternational Development Association. The Government intended to use some of the privatizationreceipts from the sale of Moldtelecom etc. toward s debt repayment. Some commercial financing was
also under discussion, including a syndicated loan towards the end of the year. Non-payments forenergy, waste of energy, low prices, energy thefts and the chronic build-up of debt to Gazprom could
be partly resolved with an agreed debt-e quity swap between Gazprom and Moldovagas.
- Foreign exchange and payments systems
13. In response to questions, the representative of Moldova informed that the national currency -
the Lei - was convertible. However, due to the growing demand for foreign exchange the NationalBank of Moldova decided that the exchange rate would be calculated as a weighted average rate of alltransactions in foreign currencies concluded by commercial banks. There were restrictions on foreignexchange and the transactions in foreign curren cy were subject to the National Bank's foreign
exchange regulations. Enterprises in Moldova which re ceive foreign currency had to transfer it to their
accounts with an authorized bank no later than 90 days from the date of the receipt of the money and
no later than 180 days from the date of the customs declaration confirming the export of goods or
delivery of services. Enterprises as legal entities were allowed one account in foreign currency and anadditional one in any of the non-convertible currencies. If enterprises bought foreign exchange at theInterbank currency exchange and did not use it to carry out payments abroad within 30 days from thedate of purchase the sum would have to be offered for sale through the authorized bank. Legal entitiesof any country could open accounts in Moldovan Lei without an authorization by the National Bank
of Moldova.
14. The representative of Moldova noted that Moldova was a member of the IMF and had accepted
the obligations of Article VIII of the IMF Article s of Agreement. Moldova met the Funds' standards of
current account convertibility and had received assist ance from the IMF in the area of monetary policy.
A Memorandum on a programme of co-operation with the IMF was signed on 3 April 1996. He said
that Moldova would not impose or intensify any exchange restrictions, introduce or modify any
multiple currency practices, conclude any bila teral payments agreements inconsistent with
Article VIII of the IMF's Articles of Agreement, or introduce or intensify any importrestrictions for balance of payments purposes.
- Investment RegimeWT/ACC/SPEC/MOL/4/Rev.1
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15. The representative of Moldova said that since 1994 a major objective of national economic
policy had been to promote a transparent and fair business environment for both domestic and foreigninvestors. To attract foreign investment, Moldova ha d established a stable legal and institutional base,
and introduced incentives and guarantees for foreign in vestors. He stated that the normative acts settling
Activities of Foreign Investors are: a) Fundament al Law – Constitution of the Republic of Moldova
adopted by the Parliament on July 29, 1994. According to the Article 126 of the Constitution, the state
guaranties inviolability of investments from natural a nd juridical persons, including foreigners; b) Law
No. 998-XII of 1 April 1992 “On Foreign Investment”, which settles involvement and protection of
foreign investments, provides legal, structural  and economic fundamentals for activities of foreign
investors and enterprises in Moldova and offers tax and customs incentives precisely defined.
Besides the legislation concerning foreign investme nts, companies with foreign capital and foreign
investors were subject to: legislation concerning rel ations with local natura l and juridical persons
and to international conventions norms of whic h one part is the Republic of Moldova and the
other countries related to Moldova by agreemen ts on investments mutual protection. The
material values envisioned in Article 3 of the Law “On Foreign Investment”, in the form of
contribution to the formation and enlargement of the public capital of the enterprise were tax
exempt. If the tax exempted goods brought in to the country by foreign investors as a
contribution to the public capital were used for other purposes, the company had to pay entirely
the customs duties within 3 year s, including the appropriate interest rate, and at the expiration
of this period of time, the customs duties were calculated at the residual value of goods. Theright of enterprises with foreign capital to profit of custom facilities was confirmed by
Articles 35-37 of the Law “On Foreign Investments”. The representative of Moldova mentionedthat actions stimulating foreign investments at the legal level provided a favorable climate: a)assets in the form of goods that are part of and are used for the increase of the company’s equity
were exempted form customs duties;  b) the company was exempted from customs duties for
those goods (raw materials, semi-finished goods)  that are imported to be used in export
production; c) companies with foreign inve stments exceeding US$250 thousand and with over
50 per cent of the net income generated form marketing own products enjoyed a 50 per cent ofincome tax for the first five years of operation;   d) companies with foreign investments
exceeding $ 1 million were exempted from income tax for the first three years, provided that at
least 80 per cent of the calculated tax shall be invested in operation development;  e) foreign
investors were guaranteed repatriation of their own profits and capital.  The above mentionedfacilities covered the investments made prior to 1 January 2000.  However,the  application ofthese measures was hampered by the present economic crisis.WT/ACC/SPEC/MOL/4/Rev.1
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16. Some members of the Working Party requested information on the basic provisions regulating
investment and any restrictions or registration measures affecting foreign investment. Therepresentative of Moldova confirmed that the Former State monopoly in foreign trade had beenabolished. Except for the limitation that goods the im port or export of which was subject to licensing
could only be imported or exported by firms, incl uding individual firms (G overnment Decision No. 777
of 13 August 1998 “On Improving the Mechanism of Regulating Foreign Trade (Import Licensing)”),there were no restrictions on the right of foreign and domestic individuals and enterprises to import and
export goods and services incompatible with WTO Agreements. The relevant legal provisions were
Article 9 of the Constitution, which provided for free economic initiative, and fair competition, and the
Law No. 849-XII of 3 January 1992 “On Foreign Econo mic Activity”. All industrial sectors were open
to foreign investments provided that they did not conflict with national security, anti-trust legislation,
and were consistent with the protection of the environment, public health and public morals. The criteriafor registration of companies were set out in the Law “On Enterprises and Entrepreneurship” of 3January 1992. There were additional requirements for certain type of business such as banking,insurance and joint stock companies set out in the respective Law “On Foreign Investment”, whichwas published in the “Monitorul Oficial ”. The state body authorized by the Government of the
Republic of Moldova, of their commercial and economic representations and associations
carried out the registration of enterprises with foreign investments (with the exception of banks,
their branches and representations). The registr ation of the banks with foreign investments,
their branches and representations was carried out by the National Bank of Moldova.  The
manner and terms of registration are set up in a similar way as the one envisioned for the registrationof national enterprises (Article 13 of the Law “On Foreign Investment”).
17. In response to additional questions the representative of Moldova said that establishment of
companies with a foreign equity participation exc eeding $ 5 million had to be approved by the anti-
monopoly authorities in accordance with Article 11 of the Law “On Foreign Investment”. Possible
restrictions of competition by domestic companies were examined according to Article 8 of the Law
“On Monopoly Activities Limitations and the Development of Competition”. There were no
differences in the approval for foreign and domestic investors by to the State EnvironmentalProtection Agency and the Medical and Epidemiological Agency.
18. Some members of the Working Party asked whether foreign investors were protected against
expropriation or nationalization of their assets. The representative of Moldova said that according toArticle 39 of the Law “On Foreign Investment”, in case of expropriation, nationalization or other
equivalent measures, compensation should correspond to  the value of the investment. Compensation had
to be paid not later than three months after the measure had been taken, and included accrued interestWT/ACC/SPEC/MOL/4/Rev.1
Page 13
calculated on the basis of an appropriate interest rate. Moreover, the Foreign Investment Law granted
the foreign investor the right to challenge in cour t the lawfulness of the expropriation, nationalization or
equivalent measure and the amount of the compensation. The representative of Moldova said that the
Parliament and the Government of Moldova had ta ken actions to attract foreign investments to
the country aimed at creating a stable legal base and ensuring effective in centives, remissions and
guarantees for foreign investors. The Consti tution of the Republic of Moldova, the Foreign
Investment Law and the bilateral agreements on promotion and protection of the investment,
which Moldova had signed with other countries, de signed a protective foreign investment regime.
since 9 June 1993 Moldova was a member of the Multilateral Investment Guarantee Agency
(MIGA).  A number of bilateral agreements on pr omotion and protection of investment had been
signed with: Turkey, Poland, Germany, Unit ed States, China, Kuwait, Iran, Romania,
Switzerland, Greece, Holland, Luxembourg, Finl and, Hungary, Bulgaria, Great Britain, Czech
Republic, Israel, France, Italy, Uzbekistan, Uk raine, Georgia, Russia and Belarus. These
agreements intend to create and maintain favorable conditions for investments by investors in the
territory of the Republic of Moldova and to intens ify economic cooperation to the mutual benefit,
as well as encourage investment between parties,  primarily by guaranteeing national treatment,
non-expropriation, and unrestricted transfers of investment funds from the investments.
- State ownership and privatization
19. The representative of Moldova said that privatiz ation of State property was a key component of
economic reform as stipulated in the Privatiza tion Law adopted in 1991. The Law gave Moldova’s the
right to acquire shares in former State propert y. They could use their National Patrimonial Bonds
(NPBs), a voucher, to purchase shares in all kinds of enterprises and to buy privatized homes. All
Moldovan nationals were entitled to NPBs related to  the length of their work history in the country.
NPBs could not be traded for cash. As a rule employees  of an enterprise to be privatized may purchase
up to 20 per cent of the enterprises' shares at par value. By October 1995 the whole population had
received its NPBs, thus, the process of privatization with NPBs was finished.
20. Some members of the Working Party requested details concerning the pace of privatization in
Moldova, the per centage of GDP privatized, the participation of foreign investors, and progress
achieved to date in the privatization of energy. The representative of Moldova said that the
recently adopted Privatization Programme for 1999-2000, which was approved by the
Parliament, had extended the Privatization Programme for 1997-1998.  The new law on
Privatization Programme 1999-2000 is extended to all sectors and branches of the economy, exceptfor those, which were not subject to privatization in compliance with the Law. At present, in theWT/ACC/SPEC/MOL/4/Rev.1
Page 14
economy of the Republic of Moldova the private sector represented 60 per cent of the industrial
production, 70 per cent of services provided by the retail trade and public services sector and 44 percent of capital construction works and transport. 50.2 per cent of the total number of industrialenterprises were privatized, including 93 per cent of processing enterprises and 82 per cent of lightindustry enterprises, as well as 95 per cent of the State-owned trade and public services enterprises.Enterprises in the following industries were scheduled for total privatization: textiles and garments,electronics, machine building, chemical and furniture manufacture, leather goods, foodstuff and
package producing enterprises, as well as hotels, shops, restaurants, stores, gas stations, cafeterias.
Concerning restrictions on foreign investors particip ation in privatization, the representative of Moldova
stated that no specific conditions other than t hose for domestic investors were attached to the
participation of foreign investors in the privatization programme. Foreign natural and legal persons wereeligible to participate in the Privatization Programme.
21. The representative of Moldova stated that a speci al regime existed for agricultural enterprises.
Only employees of the formerly State-owned agricultura l enterprises were eligible  to participate in the
privatization of agricultural enterpri ses. Under the first stage of agricu ltural reform the size of household
plots was raised up to 0.7 ha and the tenure chan ged from use right to ownership. By 1 June 1999,
94 per cent of claimants had been issued  with certificates for land ownership. The Law “On normative
price and procedure on sale and purchase of land” was applied in the following cases of: (a) sale
and purchase of land, including of land associated with privatized objects or objects subject toprivatization, as well as of land associated with unfinished constructions; (b) setting the state fee
for sale and purchase (bequest, donation) of land; (c) exclusion of land from agricultural andforestry category, as well as from the agricultural cycle and allocation of such land to othercategories; (c) forced alienation of land; (d) lease relations, (e) establishing the prices for landmortgaging.
22. Regarding privatization of energy, the representative of Moldova said that the restructuring of
the energy sector had started. The Law on the Concept of privatization of enterprises from the energy
sector no. 63-XIV of 25 June 1998 envisaged that distributing companies would be privatized first,followed by the generating companies. Currently the Ministry for Development of Territories,Construction and Public Services together with the Ministry of Economy and Reforms were carryingout the Concept of Privatization of the thermal energy sector. A marked deepening and acceleration
of structural reforms was an indispensable element to complement Moldova's strengthened
financial policies aimed at securing economic recovery. In this regard, Moldova had beenfocussing intensified efforts in the energy sector , which had been the greatest handicap to the
reform efforts so far. Negotiations with Gazpro m on the privatization of Moldovagas featuringWT/ACC/SPEC/MOL/4/Rev.1
Page 15
a debt-equity swap had been completed, and the company officially registered. Gazprom had a
majority share in the new joint stock Company. In 1999, the Government of Moldova would beundertaking preparations, supported by the World Bank, aimed at offering this share for sale in2000. Moldova confirmed that this deal removes the government from any financialresponsibility for guaranteeing payment for future gas deliveries, directly or indirectly, whileexisting debts and arrears will be reduced by $47 million by this operation and by the pendingissue of $90 million in bond. Moldova has a plan to privatise the electricity sector. In late-1998,
Parliament passed enabling legislation to break-up the electricity sector and create seven
generation, transmission, and distribution units.  Individual privatisation plans for the three
distribution companies had been approved, a cont ract with an investment bank advising on the
privatisation signed, and tenders prepared. The distribution companies would be offered attender by end-September 1999 and Moldova expected to complete sales agreements before theend-1999. Preparations to tender the electricity generation companies by March 2000 wereunderway.  With respect to Tirex-Petrol, the law on the individual privatisation of the companywas approved by Parliament in July 1999 and the company would be offered for sale.  Moldovaexpected to complete the privatisation of Tirex-Petrol by end-1999.
23. The representative of Moldova said that Mold ova was also taking steps to complete the
privatization of other large-scale objects, de spite the difficult investment environment in
Moldova and in the region. The most important of these was Moldtelecom. Following a failed
attempt in 1998, Moldova had contracted an inte rnational financial audit to be completed by
end-September, while a law creating an independent regulatory agency had come into effect,with the agency to begin operations before end-September 1999.  Moldova was working closelywith the EBRD and the IFC on a privatization strategy involving their financial participation.Moldova would hire an investment bank advisor to assist in the privatization and launch atender for a majority stake by a strategic invest or in the firm before end-1999. In the interim,
Moldtelecom would not be permitted to contract any further external debt, pending its
privatization. The EBRD and IFC were reviewin g the recent commercial borrowing to ensure
its consistency with the privatization strategy. It  was also working with investment advisors to
develop a privatization strategy for the plants in  the tobacco sector, and expected to announce a
tender for these units by 30 September 1999. Moldova had also recently approved individualprivatization plans for five major wineries and will offer them for sale by public tender by end-1999.WT/ACC/SPEC/MOL/4/Rev.1
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24. The representative of Moldova said that an other key structural measure involved the
liquidation of the state farms and distribution of land to individual farmers implemented withhelp from USAID. From a pilot project in 1997, the project nationwide had been expanded toalmost 900 former state farms and aimed at completing the process by mid-2000. At end-1998,241,000 private farms had been registered, representing some 317,000 hectares (about 30 percent of total agricultural land) with 230,000 parcels titled/registered to participants under theprogramme (representing about 6 per cent of agricultural land). By end-June 1999, some 400
collective farms had entered into the privatization procedures and around 8 per cent of land
titled. By end-1999 Moldova would process 600 farms, with at least 400 liquidated andindividual titles issued representing 40 per cent of agricultural land. This programme had beensupported by legislation that had allowed the restructuring of former collective farms to moveahead without tying up the sector in lengthy bankruptcy proceedings, by debt restructuring thattransfers social assets (schools, clinics, etc.) to local governments in satisfaction of debt to the
public sector. The law on restructuring farm debt approved in July allowed for the distributionof moveable property, vineyards, and orchards outside the bankruptcy process, while allowingfixed assets to be subject to the bankruptcy process while preserving bankruptcy procedures for
private debt. The representative of Moldova recognized that a proactive approach to
bankruptcy was necessary to establish hard-budget constraints for economic agents andeliminate the use of resources by enterprises that are not viable in a market environment.
Nearly 100 bankruptcy actions (liquidation and restructuring) were in the courts but few hadbeen completed, in part because of court personnel bottlenecks. To demonstrate the
commitment to the bankruptcy process, Moldova would ensure that adequate resources weremade available for the full functioning of the bankruptcy courts including the recruitment andtraining of at least 50 liquidators. By end-September, Moldova would complete bankruptcyproceedings for at least another five enterprise s. The collateral law had also been amended to
provide for simultaneous execution of sale a nd purchase documents, mortgages and foreclosure
procedures. As regards the tradability of land, a fixed fee schedule for notary services had beenapproved by Parliament and the National Cadastre was being progressively put in place withhelp from the World Bank and others and all 38 regional offices had now been established.
25. The representative of Moldova said that Moldova was strengthening its efforts to
establish a firm legal framework for a market economy, which was a key component toimproving transparency and good governance. Th e creation of a modern civil code had been
unduly delayed and to restart the process of approving this fundamental law specific steps hadbeen taken.  An official draft was submitted to the Government on 21 July 1999.  By 31 October
1999 Moldova would approve a draft and submitted it to Parliament for consideration. MoldovaWT/ACC/SPEC/MOL/4/Rev.1
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recognized the importance that timely and accurate  national statistics played in the formulation
and monitoring of macroeconomic policy and performance and was committed to addressingthe shortcomings of statistical data, especially as regards the timeliness and coverage of nationalaccounts, and would provide additional financial and human resources to upgrade and developstatistical performance. In this regard, Moldova would seek additional technical assistance from
the donor community and expedite the implementation of past technical assistancerecommendations.
26. In response to further questions, the representative of Moldova provided the following table
on the third stage of the privatization process.WT/ACC/SPEC/MOL/4/Rev.1
Page 18Information on the privatization process
(Third stage of the process – privatization by cash)
September 1997 – December 1998
Information provided according to Moldova’s Law on Privatization Programme for 1997-1998
Sector
Steps Undertaken Industry Agriculture ConstructionCommunica-
tion and
TransportCulture Other Total
Objects to be privatized 145 181 69 31 51 235 712
Enterprises included in a list of objects to be
privatized128 109 63 24 47 181 552
Enterprises, which are privatized according
to individual projects, approved by
Parliament.3 1 80702 3 0
Unfinished objects to be privatized 14 54 6 0 4 52 130
Objects included in the privatization
programme:Auctions
 Investment tenders112
33138
4360
929
248
3232
3619
93
Privatized objects:auction
investment tenders94
86
815
12
317
15
20
0
08
7
114
13
1148
133
15
Incomes (MDL thousand) NA NA NA NA NA NA 24,639
Object to be privatized: Enterprises, plants, stores, gas stations, shops, cafeterias and other objects.NA: Not available by sectors.WT/ACC/SPEC/MOL/4/Rev.1
Page 19
27. The representative of Moldova confirme d the readiness of Moldova to ensure the
transparency of its ongoing privatization programme and to keep WTO Members informed ofits progress in the reform of its transforming economic and trade regime. The representative of
Moldova stated that his Government would provide, at the request of WTO Members,
information on developments in its programme of privatization as long as the privatization
programme was in existence. The Working Party took note of these commitments.
- Pricing policy
28. In response to further questions the representative of Moldova stated that before January 1998
the Government has established the prices and tariffs of energy. Starting with January 1998, tariffpolice on energy is promoted by the National Energy Regulatory Agency (NERA), which was createdaccording to Governmental Decision No. 767 of 11 August 1997. NERA is a non-governmental,
independent regulatory body, which activate in accordance with legislation of the Republic ofMoldova. The prerogatives, obligations and rights of the NERA are stipulated in the laws and
governmental decision on electric power and gas. According to paragraph 6 of Governmental
Decision No.767 of 11 August 1997,  NERA had the following functio ns; issuance of licenses for
activities related to producing, transportation, dispatching services, distribution, supplying, import andexport of electric, thermal energy and natural gas; regulation of tariffs for the energy products andservices; ensuring protection of energy consumers rights; promotion of competition on the energymarket.  NERA had the right to establish a methodology for calculation of costs and tariffs of energyby electroenergetic enterprises. The methodology was fixed for a three years period. The methodology
is based on establishment of the basic tariffs as “ceiling price” with further adjustment of these tariffs,taking into account the imported prices of fuel, energy and natural gas, inflation, depreciation of
national currency, modification of the supplied energy, as well as other factors, which directly
influences the tariffs. The NERA made last adjustment of the energy tariff in June 1999. These tariffscompletely covers the real cost of energy, which as approved by NERA had entered into force on1 July 1999. The tariffs for production, transportation, distribution and marketing of energy had tocover the cost of production, as well as the necess ary profit. At the same time, the NERA limits the
profit of electricity enterprises. In addition to Governmental Decision No. 767 of 11 August 1997,Governmental Decision No.547 of 4 August 1998 "On State coordination and regulation of prices andtariffs" established legal authority to apply state control over the prices for a number of items listed intable below.WT/ACC/SPEC/MOL/4/Rev.1
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Table 1:  Nomenclature of goods and services for which fixed prices
are settled by the Government and local authorities
Description of goods and services Regulating public body
Services supplied by cadastral territorial authorities Government of the Republic of
Moldova
Rent of public network by “Radio-Moldova” Company Government of the Republic of
Moldova
Paid medical services Government of the Republic of
Moldova
Products and services of monopolies Ministry of Economy and
Reforms
Coal commercialized by Joint Stock Company “Tirex-petrol” Ministry of Economy and
Reforms
Passenger rail transport services Ministry of Economy and
Reforms
Telecommunication, wire broadcasting, telegraph, postalservices supplied for population within the Moldova’s territoryMinistry of Economy and
Reforms
Precious metals Ministry of Finance
Interurban and international road transportation of passengerand freight (except air transport)Ministry of Transport and
Communication
Freight transportation of rail transport services Ministry of Transport and
Communication
Air transportation of passengers State Agency of Civil Aircraft
Natural gas, electric and thermal energy National Energy Regulatory
Agency
Notary services Ministry of Justice & Ministry of
Finance
Aqueduct and sewerage services Local public authorities
Table 2:  Nomenclature of goods and services for which a limited profitability was established
Description of product HS code
1. Milk and dairy products 0401-0405
2. Cheese with fat up to 2 per cent 0406
3. Flour of I and II quality to make bread 1101-1102
4. Bread and bakery products 1905
At the same time, according to Governmental Decision No. 547 of 4 August 1995 there were a
number of goods (table 3), which for social reasons shall be sold with a margin of profit that may notexceed 20 per cent of the wholesale price (except for pharmaceutical products for which the marginmay not exceed 40 per cent).WT/ACC/SPEC/MOL/4/Rev.1
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Table 3
Description of product HS code
5. Canned meat foodstuff 1602
6. Fruits and vegetables for children 0702, 0704-0709
7. Vegetables oil 1507-1515
8. Butter and dairy products 0405
9. Cheese 0406
10. Sugar 1701
11. Flour 1101-1102
12. Bread and bakery products 1905
13. Footwear for children Part of 64
14. Notebooks for children 482020
15. Household soap 340219
16. Detergents 3402
17. Toys 9501
18. Pharmaceutical products (approved by the Ministry of
Health)30
29.  The representative of Moldova confirmed that the price for goods and services in
Moldova other than for the items listed in Ta bles 1-3 were not subject to State control.
30. The representative of Moldova confirmed that Moldova would apply its current state prices
and any other state prices or price controls applied from the date of accession in a WTO-consistentfashion, and would take account of the interests of exporting WTO Members as provided for inArticle III.9 of the GATT 1994. Moldova would publish an y list of goods and services subject to State
pricing or price controls in the “Monitorul Oficial” of the Republic of Moldova, including any
changes in existing measures. The Working Party took note of these commitments.
- Competition Policy
31. The representative of Moldova stated that the legal framework for anti-monopoly regulation
was the Law No.906-XII of 29 February 1992 "On Monopoly Activities Limitation and theDevelopment of Competition". This Law established the fundamental principles for regulating theactivity of enterprises having a de facto  monopoly and for supporting the development of competition.
32. The representative of Moldova added that as part of the implementation of the Law, a package
of prudential requirements approved on 5 Oc tober 1993 (Governmental Decision No.619) included
provisional regulations applying to holding companie s. A State Register was maintained of companies,
which were major producers of a product in the dom estic market without holding a dominant market
position. The list was established for taxation purposes as the Government considered that because ofWT/ACC/SPEC/MOL/4/Rev.1
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their de facto  monopolistic position on the domestic market they should pay an extra tax. Progressively,
with the restructuring of the economy the position of these producers was being challenged by newproducers and by imports.
33. Some members of the Working Party asked for information on the manner in which Moldova’s
Law "On Monopoly Activities Limitation and the Development of Competition" dealt with vertical andhorizontal restraint arrangements, and the recourse foreign firms had if opportunities were impaired bysuch arrangements. In response, the representativ e of Moldova stated that vertical and horizontal
restraint arrangements were forbidden by the Moldovan Law "On Monopoly Activities Limitation and
the Development of Competition" if one of the parties had a dominant market position, i.e. a marketshare of 35 per cent or more; and if the arrangem ent led or could lead to restricting competition.
Article 4(1) banned horizontal arrangements; Article  4 (2) banned vertical arrangements. The decision
whether or not specific arrangements violated th e Law was taken by the Ministry of Economy and
Reforms, Department of Antimonopoly and Competition. Businesses, regulatory authorities, consumersassociations, trade unions or the Departme nt of Antimonopoly and Competition could initiate
proceedings on its own initiative. Foreign firms, like domestic firms, had the right to file complaints at
the Public Prosecutor's Office. He further added that a unit in the Ministry of Economy to which foreign
firms had access monitored competition. Moldovan Law allowed exclusive dealerships if they did not
contravene the provisions of Article 4(2). Existing exclusive dealerships did not need to be registered
and the Government did not keep a register of such arrangements.
IV. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
- Powers of executive, legislative and judiciary, administration of policies on WTO-
related issues
34. The representative of Moldova stated that, in pursuance of the Constitution, the powers of the
State were divided among the executive, legislative and judicial branches, with the President being the
Head of the State. The President of the Republic was elected by popular vote every four years.
After a parliamentary vote of confidence, the President appointed the Government and designated thePrime Minister in consultation with the parliamentary majority.  The President, with the further
approval of the Parliament, proposes the Prime Minister.  The President had the right to dissolve
Parliament in the case of inability to form the Go vernment or when the passing of new legislation had
been deadlocked for three consecutive months. The Government that consisted of the Prime Minister,the First Deputy Prime Minister, the other Deputy Prime Ministers, Ministers, as well as otherWT/ACC/SPEC/MOL/4/Rev.1
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members exercised executive powers. The role of the Government was to carry out the domestic and
foreign policy of the State and to exercise general control over the public administration. Thelegislative power was vested in the Parliament, which consisted of 101 deputies elected for a four-year term. Deputies were elected by popular vote every four years. The Parliament enacted laws,
ratified international treaties and checked the Executive, which was accountable to Parliament. TheJudiciary was independent of the Executive and the Legislature. The Supreme Court of Justice, theCourt of Appeal, Tribunals (High Courts) and Co urts of Law (Magistrates and County Courts)
administered Justice. Except for the Supreme Court, the President on the basis of a proposition from a
special Commission appointed judges. The memb ers of the Supreme Court were appointed by
Parliament.
35. The representative of Moldova said that there were several governmental entities responsible
for making and implementing policies affecting foreign trade. The Department of Foreign EconomicRelations (DFER) in the Ministry of Economy was responsible for Moldova's international economicrelations. The DFER prepared implemented and coordinated foreign economic policy andinternational co-operation. Responsibility for economic policy as a whole rested with the Ministry ofEconomy and Reforms included the implementation of the economic reforms undertaken in the
framework of the transition to a market economy. The Department of Customs implemented the
Government's customs policy and ensured that customs legislation was observed. Parliament was theonly competent body to set tariffs and taxes on imports in the annual Budget Law.
36. The representative of the Moldova said that the National Bank defined the national monetary
policy and was responsible for the stability of the currency, regulated the money supply, set theexchange rate policy and supervised the activities of commercial banks and other credit institutions.The National Bank issued licenses for the establishment of commercial banks, and organized andmonitored prudential requirements. The National Bank was independent of the Government andreported directly to Parliament. The Ministry of Finance formulated financial and fiscal policy
including aspects relating to trade and supervised the implementation of the fiscal regime in
commercial activities. The Department of Standards, Metrology and Technical Supervision ensuredthat the requirements of standardization and certification were met. The Department providedinformation to importers on products subject to certification and on conformity procedures. There wasalso a State Agency for the Protection of Industrial Property (AGEPI), and a State Agency onCopyrights.
37. The representative of Moldova said that the Law No.853-XIII of 29 May 1996 "On
Reorganization of the judicial system", provided  for Supreme Court of Justice, Economic Courts,WT/ACC/SPEC/MOL/4/Rev.1
Page 24
Military Courts, Courts of Appeal, five tribunals (H igh Courts) each covering one of five regions, to
be set up. The Law No.970-XIII of 24 July 1996 “On Economic Courts” stipulated the authority over
disputes connected to the economic relations among natural and legal persons. The Economic Courtshad been established by the Parliament and judges were appointed by the President of the Republic ofMoldova based on proposition form the Supreme Council of Magistrate. The Law “On EconomicCourts” had established the following system: Economic courts of districts, Economic Court of theRepublic of Moldova, and the Supreme Court for economic disputes. All disputes relating to the
subject matter of the WTO Agreements involving le gal persons were required to be hearing by the
economic courts, whereas all disputes involving natural persons were required to be heard by theordinary courts. Within the structure of Economic Court of the Republic of Moldova there are Appeal
and Causation Board.
38. In response to further questions the representative of Moldova stated that any administrative
decisions on issues covered by the WTO could be appealed. An appeal in the first instance could betaken within the responsible governmental institution according to the Law No. 190-XIII of 19 July1994 “On Petitioning” with amendments introduc ed by the Law No. 18 - XIII of  14 May 1998.
Article 2 of the Law “On Petitioning” permitted foreigners to address complaints to the respective
governmental institutions or tribunals when their legitimate rights were affected. Articles 8 and 9
stipulated that the timeframe for examination of petitions was between one week to one month. Inspecial cases the examination could take a maximum of two months.
39. The representative of Moldova also noted that appeals could be made to an independent
tribunal. When both parties at the trial were legal persons the economic courts examined the issue.There are two economic courts in Moldova. One has the jurisdiction over the Chisinau municipalityand the other over the rest of Moldova. If one of the parties to the trial was a natural person, the issuewas brought before the ordinary court and other superi or judicial institutions. Courts of first instance
were based in each administrative unit (former rayons), in total 40. Despite the creation of new
administrative units - judets, that consist of several rayons, courts of first instance remained in each
former administrative unit, as well as major cities: Chisinau, Balti, Bender and Tiraspol had severalsuch courts based on their internal administrative division. Higher-ranking tribunals were based inChisinau, Balti, Bender, Tiraspol and Cahul. There was one Court of Appeal in Chisinau and theSupreme Court of Justice is also based in Chisinau.
40. In response to questions concerning the ratification of the WTO Agreement and Moldova's
Protocol of Accession thereto, the representative of  Moldova stated that after ratification by theWT/ACC/SPEC/MOL/4/Rev.1
Page 25
Moldovan Parliament and following entry into force of the Protocol, the provisions of the WTO
Agreement and Protocol would overrule any domestic laws that were in conflict with them.
41. In response to requests for information on the status of draft and implementing
legislation concerning the various WTO Agreements, the representative of Moldova presentedin document WT/ACC/MOL/22 a detailed table entitled Analytic Note Listing MoldovanLegislation, Decrees, Decisions and Regulations Relevant to the WTO Legal Texts: Status of
Draft Legislation and Draft Amendments. He confirmed that after ratification of the WTO
Protocol of Accession by the Moldovan Parliament and Moldova’s accession to the WTO, the
provisions of the WTO and Moldova’s protocol would supersede any domestic laws andregulations found to contradict them. According to the Article 8 of the Constitution, theRepublic of Moldova pledged to respect the Charter of the United Nations and the treaties towhich it is a party, to observe in her relation s with other states the unanimously recognized
principles and norms of international law. The coming into force of an international treaty
containing provisions contrary to the Constitution  shall be preceded by a revision of the latter.
Article 3 of the new draft Law “On Foreign Economic Activities”(which was before Parliamentfor approval) provides that the foreign commercial  activity was regulated by the Constitution of
the Republic of Moldova, the Law “On Foreign Economic Activity”, other laws and normative
acts of the Republic of Moldova, in accordance with the international agreements to which the
Republic of Moldova is a part.  In case those international agreements of which the Republic of
Moldova is a part contain provisions in conflict with those listed in the this Law and normativeacts adopted on this basis, the provisions of the international agreements are to be applied.
- Authority of sub-central governments
42. The representative of Moldova stated that the exclusive responsibility for making and
implementing policies affecting foreign trade was vested with the central Government. However,according to Law “On Special Judicial Statute of the Gagauz-Yeri", the Gagauz-Yeri region was an
autonomous territorial entity with authority to sett le political, economic and cultural matters in order
to safeguard the interests of its population. The Popular Assembly had competence to adopt locallegislation in the following fields: science, culture, education; household and town-planning; healthcare and sports; local budget; financial and fiscal activity; economy and environment; labour andsocial assistance. The Gagauz-Yeri region had no autonomous authority with respect to foreign trade,did not issue or implement technical standards, sanita ry or phytosanitary standards and did not subsidize.
43. In response to requests for information regarding the Agreement on the Transnistria region,
the representative of Moldova referred to the Memorandum on the Basis for Normalization ofWT/ACC/SPEC/MOL/4/Rev.1
Page 26
Relations between the Republic of Moldova and Transnistria signed in Moscow on 8 May 1997. The
representative of Moldova confirmed that legal bases for setting the conflict represents the
Memorandum, as well as the Agreement on the Organizational Basis of Social-EconomicCollaboration, signed on 10 November 1997. Based on this Moldova was making every efforttogether with other interested countries to liquidate the consequences of the conflict. Theactivity displayed so far proved to ensure economic stability and compliance with Moldova’s
external obligations. In economic issues related to foreign trade commitments Moldova
succeeded in finding common int erest with the Transnistrian auth orities. The representative of
Moldova stated that Moldova had signed a specia l protocol on customs cooperation with the
Transnistria region that foresees mutual elabor ation of customs policy, exchange of statistics
and facilitation of border measures.
44. In response to further questions, the representative of Moldova stated that the Law No. 344 of
23 December 1994 “On Special Judicial Statute of the Gagauz-Yeri” had established the autonomy ofthe "Gagauz-Yeri” region in economic matters refers mostly concerning its autonomy inadministrating its own budget and running economic activity. This region had no authority regardingthe excise, stamp, or sales taxes or any other taxes related to trade, as well as on establishing
requirements for investment, e.g., trade related investment measures covered by the WTO Agreement
on TRIMS. These were under the exclusive authority of the Moldovan Parliament. All legal actsadopted by the People's Assembly of Gagauz-Yeri region would not contradict Moldovan legislation
or international commitments taken by Moldova. All WTO Agreements and Moldova's commitmentsin the WTO would be applied uniformly on its customs territory.
45. The representative of Moldova confirmed that all fiscal, financial and budgetary activities
performed by local governments would be in compliance with Article III of the GATT 1994. The
representative of Moldova confirmed that sub-central entities had no autonomous authority overissues of subsidies, taxation, trade policy or any other measures covered by WTO provisions. He
confirmed that the provisions of the WTO Agreement, including Moldova's Protocol, shall be applied
uniformly throughout its customs territory and other territories under its control, including in regionsengaging in border trade or frontier traffic, special economic zones, and other areas where specialregimes for tariffs, taxes and regulations are established. He added that when apprised of a situationwhere WTO provisions were not being applied or  were applied in a non-uniform manner, central
authorities would act to enforce WTO provisions without requiring affected parties to petition throughthe courts. The Working Party took note of these commitments.WT/ACC/SPEC/MOL/4/Rev.1
Page 27
V. POLICIES AFFECTING TRADE IN GOODS
- Registration and right to trade
46. The representative of Moldova stated that the Law “On Foreign Trade Activity” would
recognize formally the right to trade. Neverthele ss pursuant to the Governmental Decision No. 777 of
13 August 1998 “On Improving the Mechanism of Regulating Foreign Trade (Import Licensing)”,there were no specific registration requirements for engaging in importing. The only requirement wasthat the intention to perform import activities should be mentioned in the statute of the enterprise.
Enterprises whose statutes did not yet specify import activities could add these without difficulties.
47. Some members of the Working Party requested  further information on the meaning of the
"statute of the enterprise". In response, the representative of Moldova stated that the statute of theenterprise was comparable to the articles of incorporation for corporations and partnership agreements
for partnerships. A detailed list of the informati on to be provided in the statute was contained in
Article 23 of the Law “On Enterprises and Entreprene urship”. For certain types of organizations, e.g.,
banks, insurance, joint stock companies and cooperatives, special provisions existed in the relevant laws.All types of enterprises, including  those without legal personality, had to be registered and required a
statute. Statutes were not regi stered. Statutes were submitted together with the application for
registration of the enterprises and a document confirming the payment of a registration fee. The
representative of Moldova added that all forms of  business enterprises, including corporations,
partnerships and individual firms could engage in the business of importing and exporting. Individualscould also engage in the importation and exporta tion activities of a commercial nature. The only
requirement was that individuals had to register their activities as a business. If the importation and
exportation activities were for the individuals’ personal consumption, there were no requirements.However, natural persons were not allowed to impor t or export goods, which were subject to licensing.
The same rules applied to foreigners and citizens of Moldova.
48. Members of the Working Party asked whether Moldova could confirm that Governmental
Decision No. 859 had established "activity licen sing" requirements for firms performing certain
activities, such as importing or wholesaling alcohol beverages or tobacco products; importing orselling petrol and diesel; and importing or trading in chemical and biological products and fertilizersfor plants. Licensing appeared to also be required for trade or storage of chemical reagents, liquefiedgas and toxic chemical substances in danger of deflagration; ozone depleting substances; and ionicradiation sources radioactive materials. In response, the representative of Moldova stated that only theLaw No.332 of 26 March 1999 "On Licensing of Certain Types of Activities" establishes licensingsystem for some types of activities. Article 18 of Chapter V “Final Provisions” provided that withinWT/ACC/SPEC/MOL/4/Rev.1
Page 28
two months' of the enactment of that law, the Government was required to adjust its normative acts in
accordance with the present law. Annex 2 of that Law listed the types of activities for which a licenceis required and responsible institutions for issuing such licensing. The list was presented to membersof the Working Party in document WT/ACC/MOL/13. The representative of Moldova further notedthat Articles 6, 7, and 12 of the Law “On Licensing of Certain Types of Activities" governed theprocedures for issue and granting of licenses. Article 13 of the Law “On Licensing Certain Types
of Activities” provides for detailed procedure in cases when an application for licence was
refused. The applicant is inform ed within 3 days about the refus al to issue a licence following
the date of adoption of such decision, indicati ng the reasons of rejection. The reasons to refuse
the issue of a licence under the Article 13(2) are:  (a) inauthentic or changed data, contained in
the submitted documents; (b) irrelevant cond itions or lack of conditions (technical,
technological, sanitary-hygienic and ecological s ecurity of technological processes) necessary for
performing concerned type of activity, listed in application; (c) previous withdrawn of licencefor the same type of activity in cases of violations listed in the art.16 (c), (d) and (e) and (d) otherconditions according to the legislation. In the ca se of liquidation of causes, for which had been
refused the application for issue of the licence, the applicant may submit a new request. The
decision of the Commission may be brought to courts in accordance with the established way.
49.  The representative of Moldova confirmed that the former state foreign trade monopoly
had been abolished and that no restrictions existed on the right of foreign and domesticindividuals and enterprises to import and expo rt goods within Moldova's customs territory,
with the exception that the importation and exportation of goods under licence could beundertaken only by registered firms, and with the exception of licensing requirements for those
activities listed in the table below, according to the Annex 2 of Law "On Licensing of Certain
Types of Activities". The importation or exportation of products covered by activity licenseswas subject only to requirements consistent with the WTO Agreement. The activity licenses
enumerated in Annex 2 of Law "On Licensing of Certain Types of Activities" did not restrict
foreign participation as they applied equally to foreign and domestic businesses. Activitylicenses were administered for the purpose of ensu ring national security, product safety and the
protection of human, animal or plant life or health. The criteria for granting activity licenseswere published in the ”Monitorul Oficial” of the Republic of Moldova. The criteria for engagingin import and export trade in the restricted sectors were consistent with generally applicablerestrictions placed on trade in similar domestic ally produced goods. The availability of activity
licenses was not restricted nor was the licensing  applied to restrict imports, the production,
wholesale or retail trade in any product. The representative of Moldova stated that the list
provided in Annex 2 to the Law “On Licensing of Certain Types of Activities” was exhaustiveWT/ACC/SPEC/MOL/4/Rev.1
Page 29
and its expansion to other activities would require additional legislation as stipulated in Article
2 (2) of the that Law.
Types of Activities, Needing Licence Authorization
Ministry of Economy and Reforms:
- organization of external tourism;
- collection of technical remnants, containing non-ferrous materials;
- organization of stock exchange trade;
- the exercise of functions of administrator of contesting procedure and administrator
of re-organizing procedure.
The Treasury:
- audit activity;
- activity in the field of insurance;
- Lombard functioning;
- organization and undertaking lotteries;
- maintaining casinos, exploitation of game machines with money gains, staking in
sports and other types of contests;
- activity, linked to state marking of articles, made of precious metals and precious
jewels and activity with precious metals and precious jewels;
- import and wholesale commercialization of spirits;
- import and wholesale commercialization of tobacco items;
- import and wholesale commercialization of fuel and petrol;
- activity of economy and citizens’ loaning associations;
- activity of customs free deposits.
The Ministry of Industry and Trade:
- fabrication of chemical products, chemical articles and products of house usage.
- the wholesale trade with goods of large usage;
The Ministry of Agriculture and Processing Industry:
- production and commercialization with re production, planting, backiferous and
vineyard materials;
- production and commercialization with vegetable seeds, pumpkin crops, potatoes and
plain crops;
- projecting the fruit-growing, backiferous plantations and vineyard;
- production for the commercialization of biologic material of bovine, pork, sheep,
chicken, horses and fish;
- up-bringing of reproduction bovine, destined to commercialization;
- importation and commercialization of chemical and biological substances, as well as
of stimulators of plants growth;
- fabrication of biological substances, as well as of stimulators of plants growth;
- production, stocking and wholesale commercialization or just only stocking and
wholesale commercialization with spirits, including ethyl drinks and beer;
- processing of tobacco, production of tob acco items, wholesale commercialization,
including tobacco export.WT/ACC/SPEC/MOL/4/Rev.1
Page 30
The Ministry of Transports and Communications:
- exploitation of auto transport for passenger traffics (with the exception of routes
within the city radius);
- exploitation of specialized auto transport, destined to the transportation of toxic,
explosive, and flammable substances (after a coordination with the Department of
Standards, Metrology and Technical As sistance and the Department of Civil
Protection and Emergency Cases, and in some cases, with the institutions on sanitary
control);
- elaboration, assembly, installation, technical maintenance of television networks by a
cable or posts (stations) of radio diffusion and television by a radio-electric way;
- functioning of television networks by a cable or posts (stations) of radio diffusion and
television by a radio-electric way (technical licenses);
- offering express postal services regarding registered parcels;
- commercialization and exploitation of telecommunication, postal and informatics
equipment (type-authorizations).
The Ministry of Labour, Social and Family Protection:
- organization of provisional abroad employment of citizens of the Republic of
Moldova, as well as the placement in the sphere of labour of citizens within the
territory of the Republic of Moldova.
The Ministry of Health:
- the development of pharmaceutics activity;
- supplying technical assistance (with the exception of some activities, practiced
exclusively by state enterprises, organizations and institutions);
- researches, applied in the field of genetics and microbiology;
- fabrication, commercialization, purchase and custody of radioactive substances,
applied in medicine;
- fabrication, commercialization, technical assistance, repairs and verification of
technical and optic medicine articles;
- usage of potentially toxic substances, of chemical and biological ones, applied in
medicine.
The Ministry of Education and Science:
- the establishment of educational institutions, of re-qualification and improvement
institutions and courses.
The Ministry of Culture:
- organization of archeological projecting research works;
- elaboration of projects and the execution of conserving, restoring and valuation works
concerning historical monuments;
- commercialization with goods with artistic value and with antiquarian things.
The Ministry of Justice:
- supplying juridical assistance;
- undertaking judiciary expertise;
- Notary activity.
The Ministry of Home Affairs:
- the use of explosive substances, explosive and pyrotechnic means;
- repairs of sports and hunting weapons;
- private detective activity;WT/ACC/SPEC/MOL/4/Rev.1
Page 31
- instruction on different types and sorts of body-to-body wrestling, including on
martial arts;
- commercialization of different types of weapons and equipment (exclusive licensing
of state enterprises);
- instruction and re-cycling of drivers of auto transport means;
- security insurance and protection activity;
- seals fabrication;
- import, export and re-export of weapons and respective equipment.
The Ministry of National Security:
- elaboration, production and commercialization of ciphering technology, technical and
prophylactic assistance of ciphering means and of other special means for the
custody, processing, transmission, interception and registration of the information, forthe insurance of its authenticity, and offering ciphering services;
- the cryptographic and technical-engineering protection of information,
cryptoalgorithms and cryptographic analysis;
- special revisions of technical means and equipment aiming at the protection against
the drain of information by technical channels;
- elaboration of ciphers;
- preparation of specialists in the field of cryptography.
The Ministry of Environment:
- the usage and processing of remnants (except the technical remnants, containing non-
ferrous metals, the collection of which is licensed by the Ministry of Economy and
Reforms);
- the usage of natural resources (the collection and commercialization of spontaneous
plants, including medical plants, animal chase, except hunting fauna, acquisition of
animals, not constituting hunting and fishing objects (snails, snakes, frogs etc., theindustrial fishing in natural water pools);
- undertaking evaluative study of the impact upon the environment and the ecological
audit undertaking;
- the practice of technologies of separating the components of the atmospheric air;
- hydro-meteorological observations.
The Ministry of Territory, Buildings and Communal Farms Development:
- works on projecting all categories of constructions, including reconstruction, general
repairs, consolidating, modernization and restoration;
- execution of works of constructing-assembling, rebuilding, general repairs,
modernization and restoration for all categories of constructions, including technical
networks and those of public utility;
- activity concerning the production of materials and building items.
The Department of Standards, Metrology and Technical Assistance:
- construction, assembly (including regulation), exploitation and repairs of objects from
mining industries, from the sectors with flammable and deflagration dangers, ofobjects to be deposed and the manipulation within them with substances, able to
create deflagrant messes of dust and air or of steam, of gas alimentation systems, of
lifting installations, of boilers, recipients, functioning under pressure as well as of
steam and hot water conducts (in case of necessity, there will be a coordination with
the Department of Civil Protection and Emergency Cases);
- fabrication, assembly (including regulation) and repairs of the chemical, mineral,
antideflagrant and electric/thermal/energetic equipment;WT/ACC/SPEC/MOL/4/Rev.1
Page 32
- custody and usage of explosive industrial materials (in common agreement with the
Minister of Home Affaires);
- exploitation of useful mineral resources (with the exception of those of large
extension);
- the expertise of industrial products’(objects’) security, including the underground and
electric/thermal/energetic works;
- fabrication, repairs, verification, calibration, experimentation, exploitation and
commercialization of measuring means;
- the usage of underground with other purposes than the extraction of useful mineral
resources;
- execution of drilling works (except the technical building prospects);
- exploitation of sources and the bottling of mineral and potable waters;
- import, usage, deposit, commercialization of chemical reagents, liquid gases and of
chemically toxic substances (materials) and those, dangerous of being deflagarant;
- deposit of fuel and lubricant materials (after a coordination with the Department of
Civil Protection and Emergency Cases);
- exploitation of petrol and gas alimentation stations (after a coordination with the
Department of Civil Protection and Emergency Cases);
- import, export, production and internal consume of substances, destroying the ozone
stratum, regulated by the Montreal Protocol, as well as of products, containing the
regulated substances;
- import, custody, exploitation and usage of ionized radiation sources of reagent
materials.
The Department of Civil Protection and Emergency Cases:
- functioning of buildings, constructions, production establishments, the characteristics
of which can generate fires or explosions and of other congested objectives;
- drafting, assembly, regulation and the technical assistance of automatic systems of
fire prevention within the economical unites;
- certification and research of flammable and fire stimulation properties of substances,
materials, articles of equipment and buildings in accordance with the rules of the
national certification system;
- creation of a department service of fire brigades within enterprises of civil protection
services formations (military, militarized, specialized, territorial, etc.);
- fabrication of techniques of emergency intervention in case of fire, of technical
equipment for fire putting out, of fire protection means, of means and equipment for
undertaking of operative works of salvation – de-blocking;
- transportation of regent materials;
- implementation of techniques of prevention and intervention in emergency situations;
- drafting and serving the systems of prevention and intervention of emergency
situations, of establishments of civil protection and of systems of vital insurance;
- instruction and briefness in the field of civil protection.
The State Commission for the Market with Security Papers:
- professional activity with security papers;
- activity of the Security Market;
- activity of investments funds.WT/ACC/SPEC/MOL/4/Rev.1
Page 33
The District Executive Committees and the Municipal Mayoralties:
- activity in the field of trade by detail and public alimentation;
- commercialization by detail with alcoholic production;
- commercialization by detail with tobacco items;
- passengers transportation in urban traffic, including taximeters;
- exploitation of useful mineral resources of large extension.
- 
The National Agency for Survey, Land Resources and Geodesy:
- topogeodesic and cartographic works upon the technical prospects of different types
of activities and technical complex prospects in constructions;
- activities linked to the field of the general land survey, the elaboration of
organizational projects of the territory and the ground evaluation;
- undertaking of equipment and estimation works of the immobile goods.
The Coordinating Council of the Audiovisual:
- radio emissions;
- TV programmes.
The National Agency for the Regulation in Energetic:
- production transportation, dispatch, distribution and furnishing of electric energy in
regulated and non-regulated tariffs;
- production, distribution and furnishing of the thermal energy;
- production, stocking, transportation, distribution and furnishing of natural gases of
regulated and non-regulated tariffs.
50.  The representative of Moldova confirmed that from the date of accession Moldova
would ensure that its laws and regulations relating  to the right to trade in goods and all fees,
charges or taxes levied on such rights would be  in full conformity wi th its WTO obligations,
including Articles VIII: I (a), XI: I and III:2 and 4 of the GATT 1994 and that it would alsoimplement such laws and regulations in full co nformity with these obligations. The Working
Party took note of this commitment.
- Customs tariff
a) Ordinary customs duties
51. The representative of Moldova said that the present import customs tariff of Moldova was
approved every year as part of the Budget Law. The representative of Moldova confirmed that after
ratification of the Accession Protocol by the Mol dovan Parliament, the Moldovan Government would
set the custom tariffs within the agreed ceiling levels.
52. In response to questions concerning the rates of the specific duties the representative of
Moldova provided the Working Party with the following tabulation:WT/ACC/SPEC/MOL/4/Rev.1
Page 34
Code Description Rate of Duty
2203 Malt beer 1.0 euro/l
2204 Natural wine, including str ong wines; must of grapes
other than in item 20091.32 euro/l
2205 Vermouths and other wines fl avored with herb or other
aromatic substances1.32 euro/l
2206 Other fermented drinks (e.g. apple or pear cider,
hydromel); mixtures of other fermented drinks and
nonalcoholic drinks not mentioned in other items0.24 euro/l
2207 Essential alcohol of 80% or more; ethyl alcohol and other
alcoholic drinks, of any concentrations1.0 euro/l
220710 Ethyl alcohol of 80% or more 1.0 euro/l
2208 Ethyl alcohol of up to 80%: 1.0 euroecu/l
220810 -220890 Of which vodka, liqueur and other alcohol products 4.0 euro/l
2402 Leaf cigarettes, cigars made of tobacco or its substitutes 30 euro/1000 pcs
The administration of the specific duties follo wed the normal rules of customs procedures.
53. The representative of Moldova provided the foll owing tabulation of the average customs tariff
rates:
Description Year Per centage
Simple average 1995 9.5
Simple average 1996 n.a. *
Trade weighted average 1995 5.9
Trade weighted average 1996 4.8 (using 1995 trade) *
Trade weighted average 1997 11.6 (using 1996 trade)
* A simple average for 1996 was calculated as the 1996 tariff included a number of relatively high fixed duty rates.
When calculating the weighted average these could be ignored, as there had not been important import volumes inthese tariff lines.
54. Some members of the Working Party said that there was uncertainty concerning the customs
tariff schedule currently applied in Moldova. In response, the representative of Moldova submitted the
customs tariff for 1998 in electronic format, which was part of the 1998 Budget  Law and had superseded
all previous customs tariffs. The Government had proposed to the Parliament to modify this system
through the adoption of a customs tariff with base dut y rates and applied rates as an annex to the Law on
Customs Tariff. Only amendments to the tariff woul d be passed through the Budget Law. This new
scheme was expected to be effective from the year 2000.WT/ACC/SPEC/MOL/4/Rev.1
Page 35
b) Tariff quotas, tariff exemptions
55. The representative of Moldova stated that, although at present, there were no tariff quotas,
Moldova might consider their use in connection with the market access negotiations. Regulations withregard to the application of the customs tari ff (Governmental Decision No. 689 of 8 November 1993
“On Customs Tariff”, along with some modifications specified in Governmental Decision No. 640 of 26
August 1994) was provided for complete exempti on from duties of imports from members of the CIS
and from Romania, as result of the free trade agreem ents signed with these countries, and of imports
from countries classified by the United Nations as l east developed. He provided the following date for
1997 duty free imports through tariff exemption for inputs in g oods that are ultimately exported, 4.4
per cent of total import; imported goods in the free trade zone under the customs supervision regime,4 per cent of the total import; imports from countries with whom Moldova has signed free tradeagreements (CIS and Rumania), 61.5 per cent of total import; trade at zero duty rate (except CIS andRomania), 8.6 per cent of total import; imports under technical assistance projects and humanitarianaid exempted from customs taxes, 2 per cent of total import.
56. In response to questions concerning tariff exemp tions, the representative of Moldova stated that
tariff exemptions did not depend on the type of pr oduct but on its use. He provided a list of imports,
which benefited from tariff exemptions. They incl uded charitable donations from organizations and
individuals to recognized charity institutions, goods imported under "cooperation contracts", the GSPsystem, agreements of technical cooperation etc. The import duty exemptions applied to raw material
imports from all countries if the final product was subsequently exported. Tariff exemptions other thanthose provided for in the context of a customs uni on or a free trade agreement were applied on a m.f.n.
basis, except for the exemption for goods originatin g from the least-developed countries in accordance
with the "Enabling Clause" decision of the GATT 1947 Contracting Parties. Moldova was prepared to
undertake that exemptions would only be granted to th ird countries in accordance with the provisions of
the WTO.
c) Other duties and charges
- Fees and charges for services rendered
57. Some members of the Working Party asked whether Moldova levied other duties and charges.
In response, the representative of Moldova said that Moldova would remove its customs system so thatthe 0.25 per cent customs users fee and would be introdu ced a flat fee reflecting the approximate cost of
processing a customs declaration. He also said that customs user fee was adopted through the
Budget Law. The change to a flat fee was being included in the draft Law on Budget 2000.WT/ACC/SPEC/MOL/4/Rev.1
Page 36
Customs user fee would be applied both to import and export operations and would reflect the
approximate costs for services rendered. The necessary calculations concerning averageprocessing costs of individual entry by groups of similar products were currently underway. Inaddition to basic administrative expenses related to the processing of imported or exportedgoods other related costs such as statistical servi ces would be taken into consideration, as well as
apportionment of the general costs related to im prove basic customs infrastructure in order to
facilitate movements of merchandise.
58.  The representative of Moldova confirmed that, from the date of accession, Moldova
would not apply or reintroduce an ad valorem  customs fee. Moldova confirmed that for import
processing, fees would be applied in conformity with WTO obligations, especially Articles VIIIand X of the GATT 1994. The level of the applied fee would not exceed the approximate cost ofthe customs processing of imports, revenues from the fee would be used solely for customsprocessing of imports and total annual revenue from collection of the fee would not exceed theapproximate cost of customs processing operations for the items subject to the fees. Heconfirmed that revenues from the fee would not be used for customs processing of exports orimports exempted from the fee, should there be  any, or for any other objective. Information
regarding the application and level of the fee, revenues collected and their use, would be
provided to WTO Members upon request. The Working Party took note of these commitments.
59. The representative of Moldova confirmed that Moldova had agreed to bind at zero other
duties and charges in its Schedule of Tariff Concessions pursuant to Article II:1(b) of the GATT1994. The Working Party took note of this commitment.
- Import surcharge
60. In response to questions from members of the Working Party the representative of Moldova
stated that due to particular balance of payment difficulties, through Article 17.2 of the Budget Law
Moldova had introduced a special import surcharge at a rate of 5% ad valorem  which applied to 700
tariff lines at four digit level. He further stated that the surcharge was applied in a manner consistent
with the requirements of the Understanding on Balance-of-Payments Provisions of the GATT 1994,as well as Article XII of the GATT 1994. The representative of Moldova stated that the
surcharge, imposed by the Budget Law 1999, would be in force till 1 January 2000. Moldova
confirmed that it would undertake all necessary measures to ensure full application of theprovisions of the WTO Agreements after accession.WT/ACC/SPEC/MOL/4/Rev.1
Page 37
61. The representative of Moldova said that Mo ldova did not apply this time any other
charges on goods than the above mentioned. He al so said that after accession all duties and
charges applied on imports other than ordinary customs duties and charges for services
rendered would be in accordance with the WTO provisions.  The representative of Moldova stated
that from the date of accession Moldova would ensure that all charges applied to imports were appliedin a manner consistent with the requirements of the Understanding on Balance-of-PaymentsProvisions of the GATT 1994, as well as Article XI I of the GATT 1994. The Working Party took note
of these commitments.
- Application of internal taxes on imports
- Value Added Tax
62. Some members of the Working Party requested Moldova to bring its VAT system in line with
Article I of the GATT 1994, so that it was applied e qually to imports from all third countries, including
CIS countries. In response the representative of Mo ldova stated that 20 per cent VAT was imposed on
the majority of imported and domestically purch ased goods. The Budget Law had brought the
application of excise tax and VAT into conform ity with the relevant WTO provisions. The only
exception (Article 26) concerning VAT application wa s made for Russia and Belarus. As the Chapter III
of the Fiscal Code foresaw no such exceptions , the 1999 Budget Law 1998 No. 216-XIV enacted on 12
December 1998 had brought the application of VAT fully into conformity with the relevant WTOprovisions, without any exceptions . He added that VAT for domestically produced goods was paid
together with the price of the goods. Firms and enterprises submitted a monthly statement to the
Ministry of Finance, not later than the 20th of th e following month, and paid the VAT due together with
the submission of the statement. VAT on imported goods had to be paid before the goods entered thecustoms territory of the Republic of Moldova. Mol dova would comply with the provisions of the WTO
concerning taxation.
63. The representative of Moldova said that according to 1999 Budget Law, VAT exemptions
were the following:   billings for the energy sold to the public. Value added tax paid on purchased
and sold energy to be consumed by the public is not included in its cost value and is assigned to
settlements with the budget in the established manner; natural and liquefied gas both importedand sold in the territory of the Republic. Value added tax on the sales costs for this product isassigned to its cost value; precious metals and precious stones in any form and condition,including scrap and waste with precious metals and precious stones, and other related tangibleassets purchased and sold by the State Reposito ry of Valuables; works related to validation of
land ownership; importation and sale of the plant-growing products in kind and stock-raisingWT/ACC/SPEC/MOL/4/Rev.1
Page 38
products in live weight or carcass weight by producers regardless of their ownership and legal
form. Value added tax on production costs is assi gned to the cost value of such products; the
goods manufactured in the medical labour shops under the psychiatric hospitals of the Ministry
of Public Health in which disabled labour is  used. Value added tax on costs for goods and
services purchased for production of these good s was assigned to their cost value; imported
equipment and spare parts (with the exception  of office equipment and equipment for the
gambling business and entertainment industry), ve hicles and spare parts, as well as imported
agricultural equipment in accordance with a list established by the Parliament; the raw
materials, spare parts imported by the Association of Blind People, the products and the serviceoffered by it (according to the list of enterpri ses and the catalogue of raw materials, spare parts,
products and service offered by the Government), in case where the respective sources shall not
be used for labour remuneration, but shall be directed to development of production. The VATadherent to the expenditures for respective products  was assigned to its value cost; the activities
of drafting the texts, publishing and polygraph execution of books connected with areas ofculture, education, and science (except for th ose with erotic character). The VAT adherent to
expenditures connected with such activiti es was assigned to its value cost.  Exemptions from
payment of the value-added tax to the budget applied to agricultural enterprises regardless of their
type of ownership and organizational-legal form on the sale of products from crop farming and animalhusbandry in unprocessed form and on a live-weight basis. The amount of value-added tax shall beentered on a separate line in sales documents for these products. The amount of value-added taxremaining at the enterprises' disposal shall not be subject to the income tax.
64.  The representative of Moldova confirmed that VAT application would be brought into
full WTO conformity. The exemption from VAT of products from crop farming and animalhusbandry in unprocessed form and on a live-weight basis did not extend to imports of similarproducts. The final text of the Law on Budget 1999 provided the same exemption in Article 26
(e)  But this practice would be discontinued with the new Budget Law starting from 1 January
2000.  The Working Party took note of this commitment.
- Excise Tax
65. The representative of Moldova confirmed that the producers of the goods on a monthly basis
paid the excise tax on domestically produced goods . Producers submitted a monthly statement to the
Ministry of Finance, not later than the 20th of the following month, and paid the excise due. Excise tax
on imported goods had to be paying before the goods entered the customs territory of the Republic ofWT/ACC/SPEC/MOL/4/Rev.1
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Moldova. For this purpose importers purchased excise  stamps and marked the goods with the stamps.
The following groups of products were subject to excise taxes:
1999 Budget: List of Excisable Products
Name of goods Unit of
measurementExcise
rate
1. Vodka, liqueurs 0.5 l bottle 2.00 lei
2. Liqueurs, alcoholic drinks including strong national drinks 0.5 l bottle 0.75 lei
3. All types of 100 per cent alcohol (excluding alcohol for
medical, pharmaceutical, veterinary, perfumery use),
denatured alcohol, aldehyde-esther fraction 1 dal 90.0 lei
4. Dry grape wines 0.7 l bottle 0.40 lei
5. Fortified grape wine 0.7 l bottle 0.50 lei
6. Low alcohol drinks (up to 8.5. per cent) 0.75 l bottle 0.30 lei
7. Wine material for production of natural wines; natural wines
in bulk 1 dal 10.00 lei
8. Wine material for production of fortified wines; fortified wines
in bulk 1 dal 12 lei
9. Carbonated grape wines:
- natural, carbonated- traditional0.75 l bottle
0.75 l bottle1.0 lei
1.50 lei
10. Divin (cognac), matured:
- less than 6 years
- over 6 years0.5 l bottle
0.5 l bottle4.00 lei
7.00 lei
11. Other alcohol-containing wi ne-making and canning products;
harmonised sulphonated grape wort (excluding wort for
producing non-alcoholic beverages); fruit wine materials and
fruit-grape wine material (with grape wine content of up to 50
per cent), grape-apple wines, fruit and berry wines1 l 0.10 lei
12. Beer:
-i n  c a s k
- in bottle / can1 l
1 l0.40 lei
0.80 lei
13. Tobacco goods:
- cigars and cigarillos
- filter cigarettes:
- size over 81 mm
- size below 81 mm
- non-filter cigarettes1 000 pcs
1 000 pcs
1 000 pcs
1 000 pcs800.00 lei
15.00 lei
7.00 lei
3.00 lei
14. Non-fermented tobacco 1 ton 2 000.00 lei
15. Precious metals jewelry:
- gold (standard of fineness below 600)
- gold (standard of fineness 600 and over)
- silver
- diamondGram
Gram
Gram
Item20.00lei
40.00 lei
3.00 lei
340.00 lei
16. Motor petrol 1 ton 1200.00 lei
17. Diesel fuel 1 ton 500.00 leiWT/ACC/SPEC/MOL/4/Rev.1
Page 40
Name of goods Unit of
measurementExcise
rate
18. Motor cars (motor volume, cu cm):
- 1 500 and less- 1 500 to 1 750
- 1 750 to 2 000
- 2 000 to 2 250
- 2 250 to 2 500
- 2 500 to 2 750- 2 750 to 3 000
- over 3 000One piece
One piece
One piece
One piece
One piece
One pieceOne piece
One piece2 300.00 lei
3 100 .00lei
4 050 .00lei
5 900 .00lei
7 400.00 lei
9 300.00 lei
11 600.00 lei
14 500.00 lei
19. Coffee grains 1 ton 1000.00 lei
20. Ground coffee and instant coffee 1 ton 12 00.00 lei
21. Garments of natural furs (mink, polar fox, fox, sable) price in lei 25 per cent
22. TV sets; tape recorders and other audio equipment:
- TV sets, screen size:
- less than 14”
- 14.1” to 20”
- 20.1” to 24”
- 24.1” to 28”
- over 28”
- TV sets with VCRs
- VCRs
-V i d e o  c a m e r a s
- Music center
- Amplifiers- Audio cassette-recorder
- Motor car cassette-player
- Audio player
- Tape-recorderPer piece
US $ 20
US $ 25
US $ 30
US $ 50
US $ 65US $ 50
US $ 15
US $ 55
US $ 25
US $ 30US $ 10
US $ 10
US $ 10
US $ 10
23. Office furniture price in lei 10 per cent
24. Top class home furniture price in lei 15 per cent
25. Black caviar Per kg 30.00 lei
26. Red caviar Per kg 20.00 lei
27. Perfume Price in lei 10 per cent
Notes:
- These excise tax rates are applicable to imported goods (products) and domestically manufactured
goods (products) which are either exported to the CIS countries or sold at the domestic market. Excise
taxes are not applicable when wine materials, wi ne in bulk and non-fermented tobacco are sold by
producer which posses processing capacities and is a taxable subject of the Republic of Moldova;
- Excise tax is applicable to motor cars that are imported only;
- When excisable goods are sold in units other than specified for the purposes of excise tax, the volume
is re-computed in the required unit and the established tax rate is applied. Similar procedure is appliedto compute the excise tax on alcohol on the basis of the absolute alcohol content;
- Jewelry components imported by the “Giuvaer” jewelry factory of Chisinau for use in manufacturing
are exempt from excise tax;
- Paid excise taxes on procured alcohol, which is utilized in medicine, pharmacology and veterinary is
offset against the budget.WT/ACC/SPEC/MOL/4/Rev.1
Page 41
The representative of Moldova said that th e exemption for the “Giuvaer” factory was
introduced being the only producer of jewelry goods. Starting with 2000 this provision would be
taken out from the Budget Law.
66. Referring to the table above, some members of the Working Party asked Moldova to ensure that
the exemption from excise tax for spirits used in pharmacology and veterinary products did not create anincentive for abuse of the exemption. In respons e the representative of Moldova stated that
manufacturers of pharmaceuticals or veterinary products  were granted exemption from excise taxes for
imported spirits on a bona fide  basis if they declared that the imported spirits would be used for the
production of pharmaceuticals or veterinary products . However, exemptions from excise taxes were
being monitored and unusual supplies, which coul d not be explained, would give rise to an
investigation.
67. Some members of the Working Party requested information on how the Government of
Moldova intended to amend the Budget Law to brin g the VAT and excise tax regimes into conformity
with WTO requirements. In response the representativ e of Moldova explained that the Government had
already approved a concept paper for the 2000 Budget  Law. The paper stated that the VAT and excise
tax systems should be in conformity with the releva nt WTO provisions. In pa rticular, the Budget Law
would provide for the following: (i) general application of the principle of destination for VAT
purposes; (ii) no discriminatory VAT exemptions for domestic products; (iii) general application of theprinciple of destination for excise tax purposes; (iv)  no discriminatory excise tax rates. The general
application of the principle of destination for VA T purposes was also stipulated in the new Law on
VAT. According to the Government plan, Moldova had intended to apply the principle of destination for
VAT and excise taxation and to adjust the excise  tax rates, consistent with national treatment
requirements starting with the Budget Law 2000. The Budget Law 1 999, enacted in December 1998,
had brought the application of excise tax and VAT without any exceptions fully into conformity withthe relevant WTO provisions. However, the severe budgetary difficulties currently encountered by
Moldova could require temporary fi scal measures, which might be inconsistent with WTO regulations.
Such measures, if applied, would be brought in to conformity with WTO rules prior to accession.
68. Some members of the Working Party stated that th ey were of the view that the excise taxation
regime on alcoholic beverages was inconsistent with the requirements of Article III of the GATT 1994in light of recent WTO Dispute Settlement proceed ings. Those members asked how Moldova planned to
ensure conformity of its excise taxation of alc oholic beverages with the GATT 1994. In response, the
representative of Moldova stated that Moldova consid ered that its excise tax regime was in conformityWT/ACC/SPEC/MOL/4/Rev.1
Page 42
with the requirements of the GATT 1994, although if that was not the case, Moldova would take all
necessary steps to bring its regime into conformity.
69.  Concerning the application of the excise ta xes, the representative of Moldova said that
Moldova had signed bilateral agreements with Belarus, Kazakstan, Uzbekistan and Armeniathat provided for the implementation of destination of excise taxes as well. Starting with theLaw on Budget 2000 the application of excise taxes would be brought fully into conformity withWTO provisions with all countries.
70. The representative of Moldova confirmed that, from the date of accession, Moldova would
apply its domestic taxes, including those on products listed in paragraphs [ 63 to 69] in strict
compliance with Article III of the GATT 1994 and in a non-discriminatory manner to imports
regardless of country of origin. The Working Party took note of this commitment.
- Quantitative import restrictions
71. Some members of the Working Party requested information concerning those provisions in
Moldovan Law that authorized the Executive to apply quantitative restrictions. In response, therepresentative of Moldova explained that under the Article 13 of the Law “On Foreign EconomicActivity” the Government could restrict the export and import of goods and services or to suspend
foreign economic transactions for balance-of-payments reasons or under other economic and political
conditions. However, such temporary measures had to  respect provisions of international treaties and
agreements to which Moldova was a party (Article 3, Law “On Foreign Economic Activity”). Therewere no specific rules on the duration of such temporary measures. Moldova did not maintain importprohibitions although import prohibitions could be imposed under this Law. He added that Moldovawould only apply import restrictions, quotas and rest rictive import licensing in conformity with the
relevant WTO provisions.
72. Some members of the Working Party noted that Article 12 of the Law “On Foreign Trade
Activity” appeared to authorize, as a rule, the setting of quantitative restrictions, awarding of quotas
and issuing of licenses "through holding a tender or an auction" and that "distribution of quotas and
issue of licenses are conducted by an authorized body of public administration, with preference givento manufacturing organizations". Those members asked whether the auctioning of quotas, licenses andother quantitative restrictions is compatible with the provisions of Articles II, XI, and XIII. Inresponse, the representative of Moldova stated that Article 10 of the Law “On Foreign EconomicActivity” provided that importation and exportation was not subject to any quantitative restrictions.The Government of the Republic of Moldova could only introduce quantitative restrictions on importWT/ACC/SPEC/MOL/4/Rev.1
Page 43
and export only in the exceptional cases foreseen in the new draft law. These exceptional cases were
stipulated in Article 11 of the Law “On Foreign Economic Activity” and were in compliance withArticles XX and XXI of GATT 1994. Government al Decisions concerning the introduction of
quantitative restrictions on import and export were required to be published at least 30 days before theentry into force of these restrictions. In the case of establishment of any quantitative restrictions, theauthorized body of public effected the administration and distribution of quotas and the issue oflicenses. He further noted that Article 3 of the this  Law that provided that the supremacy of that Law
over any international agreements to which the Republ ic of Moldova is part, the consistency with the
WTO Agreements is assured, including as regards Articles IX and XIII of GATT 1994.
73. Some members of the Working Party asked how preferential treatment in the distribution of
licenses was compatible with the provisions of Article III and XI. In response, the representative ofMoldova stated that Article 12 of the Law “On Foreign Economic Activity” had been amended todelete all references to preferences.
74. The representative of Moldova said that at the present time Moldova had no
quantitative import restrictions in place.  He confirmed that from the date of accession,Moldova would not introduce, re-introduce or ap ply quantitative restrictions on imports and
other restrictions having equivalent effect that co uld not be justified under the provisions of the
WTO Agreements.
- Import licensing procedures
75. Some members of the Working Party requested information on the products subject to import
licensing, the justifications thereof, the authorities involved, the cost and procedures, and thedocumentation requirements. In response, the representative of Moldova confirmed that only a limitednumber of products were subject to licensing. The pr oduct groups subject to licensing are listed in the
following paragraph. Lottery-type inventions, equipmen t for different types of lottery, slot machines,
fortune games, and industrial waste subject to internat ional control were also subject to import licensing.
The import licensing system applied to imports irre spective of their origin, including imports from CIS
countries and other countries with which Moldova had a preferential trade agreement. In order to
provide the Working Party with fu rther information, the representative of Moldova presented further
information on import licensing in document WT/ACC/MOL/8/Add.1; wh ich was revised and
supplemented in document WT/ACC/MOL/15.
76. Some members of the Working Party asked to whom an application for import licence should
be made. The representative of Moldova said that the institutions and the product groups covered,WT/ACC/SPEC/MOL/4/Rev.1
Page 44
excluding the alcohol and tobacco products covered by Annex 4 of Governmental Decision No. 777 and
petrol and diesel (HS 27100021-27100039 and HS 2710006  respectively) covered by Governmental
Decision No. 305 of 27 March 1997, as well as the reason for each licensing requirement and WTO
justification are listed in the table below:
Special Governmental Committee
Product Group HS-Code Reason for
licensingGATT reference
Weapons, ammunitions, military
equipment, kits to produce such
equipment, works and services in the field
of technical-military cooperation93.00 National security Art. XXI (b) (ii)
Explosive substances 36.01-36.04 National security Art. XXI (b) (ii)
Nuclear materials, technologies,
equipment and installations to produce
such materials2844, 8401 National security Art. XXI (b) (ii)
Ministry of Health
Product Group HS-Code Reason for
licensingGATT
reference
Pharmaceutical products 1204, 1207, 1211, 2924,
2935-2938, 2941, 3001-
3006, 370110, 4014,
4015, 481840, 481890,
7017Protection of
human, animal or
plant life or healthArt. XX (b)
Medical and optical equipment, parts
and accessories, bio-media for the
development of microorganisms9001-9004, 9018-9022,
3821Protection of
human, animal or
plant life or healthArt. XX (b)
Diagnostic tests and chemical
reactive3822, 38084 Protection of
human, animal or
plant life or healthArt. XX (b)
Drugs, substances with psychotropic
effects; materials to produce suchsubstances1302, 2921, 2922, 2926,
2929, 2932, 2939,280610, 2807, 28416,
290231, 290911,
291411, 291412, 29143,
291524, 291633,
29242950, 29329073-
29329071, 293332,
29394, 29396.Protection of
human, animal orplant life or healthArt. XX (b)WT/ACC/SPEC/MOL/4/Rev.1
Page 45
Ministry of Agriculture and Processing Industry
Product Group HS-Code Reason for
licensingGATT
reference
Poisons 280480, 280540, 2837,
2838, 284160, 2904,
2907, 2908, 291521,Protection of
human, animal or
plant life or healthArt. XX (b)
Chemical and biological products for
plant protection and stimulation of
plant growing.31, 3808 Protection of
human, animal or
plant life or healthArt. XX (b)
Tools and devices for vet services 9018-9022 Protection of
human, animal or
plant life or healthArt. XX (b)
Ministry of Finance
Product Group HS-Code Reason for
licensingGATT
reference
Precious metals (silver and gold),
objects made thereof, alloys,
semifabricates, wastes containing
precious metals (except electronic
articles containing precious metals),7106, 7108, 7113, 7114,
7115, 7118, 711210Special role of gold
and silverArt. XX (c)
77. The representative of Moldova added that alt hough imports of medications, drugs and medical
equipment had previously been to prior authorizati on by the Ministry of Health, that requirement had
now been eliminated following the Decision of the Constitutional Court No.14 of 19 May 1998.Government Decision No.716 of 30 June 1998 had introduced certain amendments to theGovernmental Decision No.777 that abolished the licence fee of 0.1 per cent.
78. The representative of Moldova noted that there were no fees related to the issuing of import
licenses. Licenses were automatic. A licence was required to be issued within five days after the
complete set of documents had been submitted. Import licenses were valid for the period requested by
the importer. Import licenses could be extended upon the request of the importer.
79. The representative of Moldova confirmed th at from the date of accession, Moldova
would not introduce, re-introduce or apply other non-tariff measures such as licensing, quotas,prohibitions, bans and other restrictions having equivalent effect that could not be justifiedunder the provisions of the WTO Agreements. If balance-of-payment measures were evernecessary in the future, Moldova would impose th em in a manner consistent with the relevant
WTO provisions, including Article XII of th e GATT 1994 and the Understanding on Balance-
of-Payments Provisions of the GATT 1994. The Working Party took note of these commitments.WT/ACC/SPEC/MOL/4/Rev.1
Page 46
- Customs valuation
80. Some members of the Working Party noted that Governmental Decision No. 99 of 27
February 1996 “On Customs Valuation” did not implement the WTO Customs Valuation Agreementand, in many cases, was in conflict with the Agreement. The regulations set forth in Decision No. 99concerning the methods of valuation would need to  be modified to conform to the Agreement, or
revoked. Specific questions were raised with regard to Articles 1, 5, 6, 7, 8, 9, 11, 12, 15 and 16, theInterpretative Notes, the Decision on the Treatment of Interest Charges and the Valuation of Carrier
Media Bearing Software etc.
81. The representative of Moldova confirmed that Moldova intended to bring its customs valuation
regime into conformity with WTO requirements prior to the date of accession. The Law on CustomsTariff had been enacted on 20 November 1997. This Law consists of two major parts: customsvaluation and rules of origin. Both issues had been addressed to meet the WTO requirements on thesesubjects in Moldovan legislation and to implement the respective WTO Agreements.
82. Some members of the Working Party posed many questions related to the apparent lack of
conformity of the Draft version of the Law on the Customs Tariff with the requirements of the WTOAgreement on Customs Valuation. The representative of Moldova noted that most of the
inconsistencies identified by members of the Work ing Party had been remedied in the final draft of
the legislation. However, certain problems remained and would be remedied by a draft governmentaldecision introducing the provisions of the relevant Notes from the WTO Valuation Agreement hadbeen presented to the relevant institutions for comments both documents were expected to beapproving shortly by the Government and the Parliament.
83. Some members of the Working Party asked whether the Customs Law satisfied the
requirements of Article 11 of the WTO Valuation Agreement. In response, the representative ofMoldova stated that final version of the Article 7 (Rights and responsibilities of declarant) of theenacted Law provided importers with the right of appeal according to the procedures established by
the Code of Civil Procedure, which stipulated in Chapter II the procedure to be followed while
lodging a complaint in the economic courts and ordinary appeal procedure in its Chapter III. Inaddition, the Customs Code in its Chapter 16, Article 96 gave to the importer the initial right of appealto an authority within the customs administration or to an independent body. A draft of the law
amending the Law on Customs Tariff in its Article 1 (2) and (3) introduced language for the right ofappeal without penalty. In addition a new draft of the Customs Code was in the final stage ofcoordination. It would also provide for the righ t of appeal according to the WTO ValuationWT/ACC/SPEC/MOL/4/Rev.1
Page 47
Agreement. He further added that Moldova would provide a copy of the finalized new draft once it
was ready.
84. In response to questions from members of the Working Party, the representative of Moldova
noted that Article 10 of the Law on Customs Tariffs (Methods of determination of the customs valueof the goods) provided for the sequential application of valuation methods and stipulated that thedeductive and computed value methods could be applied in reverse order at the request of theimporter. In the interests of further improving the legislation, Moldova had taken the step of preparing
a draft Governmental Decision "On Regulation on A pplication of Provisions of the Law on Customs
Tariff", reiterating the provisions of General Note s, Sequential Application of Valuation Methods in
Annex I of the WTO Valuation Agreement. He further added that Moldova would also informmembers of the Working Party whether it would take a reservation under Article 4 as set forth inParagraph 3 in Annex III of the WTO Valuation Agreement.
85. Some members inquired whether Moldova applied minimum pricing or reference pricing. In
response, the representative of Moldova stat ed that by Governmental Decision No. 1092 of
29 October 1998 had introduced reference prices. The representative of Moldova confirmed that
upon accession to WTO the import reference prices and other minimum import valuation
schemes would be eliminated. Thus, the Gov ernmental Decision No. 1092 of 29 October 1997
“On the obligatory control of customs valuation for some imports goods” was valid until1 January 2000. After accession Moldova assumed the obligation to resp ect all WTO provisions
in this respect.
86. At a later stage and in responses to the above questions, in document WT/ACC/MOL/14 the
representative of Moldova provided detailed information cross-referencing the provisions of theCustoms Valuation Agreement with the Articles of the Customs Tariff Law.
87. The representative of Moldova confirmed that, from the date of accession, Moldova
would apply fully the WTO provisions concerning customs valuation, including in addition to
the Agreement on the Implementation of Arti cle VII of the GATT 1994, the provisions on the
Treatment of Interest Charges in Customs Valu e of Imported Goods and for the Valuation of
Carrier Media Bearing Software for Data Proc essing Equipment. In accordance with these
latter provisions, only the cost of the carrier medium itself would be accounted for in thecustoms value. He added that, as an internat ional agreement, the provisions of the WTO
Agreement on the Implementation of Article VII of the GATT 1994 would supersede domesticlaw upon accession. The Working Party took note of these commitments.WT/ACC/SPEC/MOL/4/Rev.1
Page 48
- Rules of origin
88. Some members of the Working Party asked for confirmation that Mol dova would adopt legal
provisions for rules of origin that conform fully to the requirements of the WTO Agreement on Rules of
Origin. The representative of Moldova stated that the Customs Tariff Law of November 1997established Moldova's rules of origin.
89. In response to questions the representative of Moldova said that rules of origin were required
only for goods imported from countries covered by a preferential trade agreement and from
least-developed countries. The rules of origin under the Free Trade Agreements signed with CIS
countries and Romania, as well as under preferences  in the framework of the GSP, were included in
respective agreements. A valid, official certificate of origin constituted the proof. He further added that
the country of origin was ascertained by verifying whether the certificate of origin which was submittedcoincided with the merchandise to be imported.
90. The representative of Moldova confirmed that Mo ldova would adopt legal provisions for rules
of origin that comply fully with the require ments of the WTO Agreement on Rules of Origin.
91. The representative of Moldova confirmed that from the date of accession Moldova’s
preferential and non-preferential rules of origin would comply fully with the WTO Agreement on
Rules of Origin, and that the requirements of Article 2(h) and Annex II, paragraph 3(d) of the
Agreement, which require provision upon request of an assessment of the origin of the import andoutline the terms under which it will be provided, would be established in Moldova's legal framework
prior to accession. The Working Party took note of this commitment.
- Pre-shipment inspection
92. In response to questions from some members of the Working Party, the representative
of Moldova said that, in order to implement th e provisions of Customs Tariff Law No.1380-XIII
of 20 November 1997 and for improvement of the mechanism of pre-shipment inspection, theGovernment of Moldova had approved the Decision No.747 of 3 August 1999 “On introduction
of the pre-shipment inspection for imported goods”.
- Anti-Dumping, countervailing and safeguards
93. Some members of the Working Party requested that the Government of Moldova undertakes a
commitment that any anti-dumping, countervailing or safeguards measures would only be taken in
conformity with the WTO Agreements on Anti-Dumping, Subsidies and Countervailing Measures andWT/ACC/SPEC/MOL/4/Rev.1
Page 49
Safeguards. In response, the representative of Moldova stated that the Government of Moldova was
preparing a law on anti-dumping, countervailing and safeguard measures, which would comply with therespective WTO regulations. Safeguard measures were addressed in Article 15 of the Law “On ForeignTrade Activity" which had been submitted to the Working Party in May 1997.  
94. The representative of Moldova confirmed that Moldova would not apply any anti-
dumping, countervailing or safeguard measure until it had notified and implementedappropriate laws in conformity with th e provisions of the WTO Agreements on the
Implementation of Article VI, on Subsidies a nd Countervailing Measures, and on Safeguards.
In the elaboration of any legislation concerning such anti-dumping, countervailing andsafeguard measures Moldova would ensure their full conformity with the relevant WTOprovisions, including Articles VI and XIX of the GATT 1994 and the Agreements on theImplementation of Article VI, the Agreement on Subsidies and Countervailing Measures andthe Agreement on Safeguards. After such legislation was implemented, Moldova would also onlyapply any anti-dumping duties, countervailing duties and safeguard measures in full conformitywith the relevant WTO provisions. The Working Party took note of these commitments.
- Export Regulation
- Customs tariffs, fees and charges and internal taxes applied to exports
95. Some members of the Working Party asked Moldova to explain the justifications of export
licensing requirements and the registration of export contracts. They expressed concern that thecurrent customs user fee of a 0.25 per cent was in consistent with Article VIII of GATT 1994 and asked
Moldova to bring its system into line with WTO rules.
96. The representative of Moldova said that there were no export licensing requirements and that
the registration of export contracts had been a bolished by Government Decision No. 777 of 1997. The
Government of Moldova was aware of the GATT 1947 panel decision of 1988 that the use of an ad
valorem  system of customs user fees was inconsistent with the provisions of Article VIII of the
GATT 1994 to the extent that it caused fees to be le vied in excess of the approximate costs of the
services rendered by the customs. He confirmed that Government Decision No. 716 of 30 June 1998 had
modified Government Decision No. 777 of 1997 and abolished the licence fee of 0.1 per cent. The
customs user fee is being replaced by a flat rate, wh ich represented the approximate cost of the services
rendered by the Customs Administration.WT/ACC/SPEC/MOL/4/Rev.1
Page 50
- Export restrictions
97. In response to questions, the representative of Moldova said that Moldova no longer
maintained the temporary export restriction on unbolted wine intended to promote the quality imageof Moldovan wine. Because the restriction had proved ineffective to achieve this objective it had beenremoved. The representative of Moldova said that if  any of these policy instruments were
introduced in the future, they would be fully consistent with the relevant WTO provisions.
- Export licensing
98. The representative of Moldova informed members of the Working Party that export licenses
were required for "goods with a special character" and that, in accordance with Government DecisionNo. 777 of 13 August 1997, the list of products was the same as the list of products subject to importlicensing reproduced in paragraph [52] above. It included wea pons, ammunition, military equipment,
kits to produce such equipment; explosives; nuclear materials, technologies, equipment and installations
to produce such materials; ionic radiation sour ces; drugs, psychotropic effect substances and
preparations, materials to produce such substances and preparations, poisons; lottery-type inventions,
means and equipment for different types of lottery; slot machines, fortune games; chemical substances
(including fertilizers and plant-protection substan ces) and industrial waste subject to international
control; medicines, medical appliances and equipmen t. The list also included precious metals: gold and
silver.
99. In response to questions from some members of the Working Party, the representative of
Moldova confirmed that the registration requireme nt for export contracts had been abolished by
Government Decision No. 777 of 13 August 1997 “On Improving the Mechanisms of Regulating
Foreign Trade”. The export licence fee had also been abolished too.
- Export subsidies
100. In response to requests for information, the representative of Moldova said that Moldova did
not maintain export subsidies, special promotion or financing policies. If Moldova decided to
introduce such measures in the future, it would be fully consistent with the relevant WTO provisions,
such as the Agreement on Subsidies and Counterva iling Measures and the Agreement on Agriculture.
101. The representative of Moldova stated that from the date of accession Moldova would not
maintain any subsidies, including export subsidies, which met a definition of a prohibited subsidywithin the meaning of Article 3 of the Agreement on Subsidies and Countervailing Measures, andWT/ACC/SPEC/MOL/4/Rev.1
Page 51
would not introduce such prohibited subsidies from the day of accession. The Working Party took
note of this commitment.
- Internal Policies Affecting Trade in Goods
- Industrial policy, including subsidies
102. In response to requests for information, the representative of Moldova stated that the
Government had a general policy to create a broad-based market economy and to privatize allgovernment-owned commercial enterprises and assets. The Government also had a general policy to
attract foreign investment into the country and to involve, as far as possible, foreign investors and
technology in all sectors of the economy for the purpos e of furthering the creation of a market economy
and the privatization of government-owned commerci al enterprises and assets. Industry continued to be
an important element in the development of the national economy and, as part of its economic policy
Moldova had identified priority development sectors. Tax incentives and relief were granted to sectors
such as energy, transport, road building and tel ecommunications in the form of priority loans and
technical assistance provided by international orga nizations or bilateral co-operation programmes. No
subsidies were granted to domestic industrial production. In 1999, Moldova had accorded the followingtax exemptions:
(i) Exemptions from payment of the income tax to the budget applied to:
- medical labour shops under the psychiatri c hospitals of the Ministry of Public
Health in which disabled labour is used;
- Republican Experimental Center for Prosthetic Appliances, Orthopedic, and
Rehabilitation of the Ministry of La bour, Social Protection, and Family;
- enterprises of penitentiary institutions provided they channel at least 70 per cent
of their income on production expansion;
- - enterprises of the Association of Blind People, provided they use at least 70 per
cent of the income for production expansion.
(ii) income tax exemption applied to:
- militaries, members of the command body, of the penitentiary system troops of
the internal affairs bodies and of the Fire and Rescue Service of the Department
for Civil Protection and Emergencies - on incomes received  at the main job
place. The personal allowance is transferable on spouses;
- sportsmen and coaches, on financial aid provided by the International Olympic
Committee;WT/ACC/SPEC/MOL/4/Rev.1
Page 52
- individuals, on material assistance received from the President's Fund of the
Republic of Moldova, reserves of the Government and local governments, and
labour unions funds in conformity with provisions on such assistance.
(iii) land tax exemptions applied to:
- institutions funded from the state and local budgets, except for land plots used
for business activity or leased;
- enterprises of penitentiary institutions;
- the enterprises of the Society of Blind People, Society of Deaf People, and the
Society of Invalids.;
- on land plots under housing and household plots within the set limits:  a) persons
who have reached the age of 60 for men and 55 for women, disabled persons of
1st and 2nd category, other persons incapable for work, disabled persons of 3rd
category who participated in the milita ry actions to protect the territorial
integrity and independence of the Republic of Moldova, actions in Afghanistan,
and Chernobyl post-accident clean-up. These categories of individuals (except
for the invalids of categories I and II) are exempt from tax provided there are no
family members capable for work livin g with them. For the purposes of the
above tax concessions, the category “o ther persons incapable for work” includes
children up to 16 years old, compulsory-duty servicemen, full-time students of
the educational institutions enrolled for a term of more than one year; b)
families of the lost participants of mili tary actions to protect the integrity and
independence of the Republic of Moldova and persons they had supported; c)
families of militaries that died during actions in Afghanistan and the personsthat have been supported by them; d) families of persons that died as a result of
participation in Chernobyl post-accident clean up and the persons that have
been supported by them; e) families with invalid children; f) persons that
suffered as a result of land gliding.
(iv) Real Estate Tax exemption applied to:
- institutions funded from the state and local budgets;
- enterprises of penitentiary institutions;
- enterprises of Associations of Blind People, Deaf People, and Invalids
- civil defense units;
- diplomatic representations - on real esta te provided to them on a reciprocal
basis without lease;
- religious organizations - on real estate designated for carrying out religious rites;
- Republican Experimental Center for Prosthetic Appliances, Orthopedic, and
Rehabilitation of the Ministry of La bour, Social Protection, and Family;
- within the limit of the real estate cost  up to 20 thous. Lei;a) persons who have
reached the age of 60 for men and 55 for women, disabled persons of 1st and 2ndWT/ACC/SPEC/MOL/4/Rev.1
Page 53
category, other persons incapable for work, disabled persons of 3rd category
who participated in the military actions to protect the territorial integrity and
independence of the Republic of Moldova, actions in Afghanistan, and
Chernobyl post-accident clean-up. These categories of individuals (except for
invalids of grade I and II) are exempt from tax provided there are no family
members capable for work living with them. For the purposes of the above tax
concessions, the category “other pers ons incapable for work” includes children
up to 16 years old, compulsory-duty servicemen, full-time students of the
institutions of learning enrolled for more  than one year; b) families of the lost
participants of military actions to prot ect the integrity and independence of the
Republic of Moldova and persons they had supported; c) families of militaries
that died during actions in Afghanis tan and the persons that have been
supported by them; d) families of persons that died as a result of participation inChernobyl post-accident clean up and the persons that have been supported by
them; e) families with invalid child ren; f) individuals that suffered from
landslides; g) In case where the mentioned categories dispose of immovable
property the cost of which exceeds 20 thou sand lei the real estate tax is paid out
of the difference between the cost of the immovable property and the 20thousand lei.
(v) Water Fee exemption:
- the incidental removal of ground water accompanying the extraction of minerals
or the removal of ground water for the purpose of averting (eliminating) its
harmful effects;
- water used in fire-fighting operations;
- water drawn from surface and underground sources to meet the drinking water
needs of the population and for household use;
- surface water used in fish farming;
- water consumption by enterprises operate d by organizations the disabled and
charitable organizations;
(vi) Exemption from VAT, customs duties, and customs fees:
- goods (works, services) both imported and purchased in the territory of the
Republic at the expense of credits and grants provided to the Government of the
Republic of Moldova or under public guarantees, loans extended by theinternational financial organizations (including at the expense of the share of
Government of the Republic of Moldova) for implementation of certain projects
as set forth in the list approved by the Government. The value added tax paid by
the domestic suppliers on the goods (works, services) they produce which are not
subject to value added tax under this paragraph, is not assigned to settlements
with the budget and is included in their cost value;
(vii) Exemption from the VAT and custom duties:
- the imported passenger cars and at th eir further sale on  internal market;WT/ACC/SPEC/MOL/4/Rev.1
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(viii) Exemption from VAT, customs duties on equipment and other tangible assets imported
for production purposes:
- company for development of natural resources “Redeco” Ltd (USA) under the
concession agreement on prospecting and development of oil and gas resources;
(ix) Exemption from VAT, customs duties, and customs fees:
-  imported equipment and outfit received as a gift from the International
Olympic Committee for preparation of the national Olympic team for
participation in the Olympic Games in Sidney - the National Olympic
Committee;
(x) Exemption from custom duties, including for custom procedures on import of items
necessary for statutory activities, received as donations from the Council of Europe -
Center for Information and Documents of the Council of Europe in the Republic of
Moldova;
(xi) Exemption from value added tax on produced goods and services and fees for use of
mineral resources:
- enterprises of penitentiary institutions. Value added tax on production costs of
the goods and services is assigned to their cost value;
(xii) Exemption from income tax on business activity payable to the budget, value added tax
and fees for extraction of inert building materials:
- joint stock company “Mina din Chisinau ” provided the funds will be used to
take measures against flooding of the dug wells;
(xiii) Exemption from transfer to the budget of taxes and fees (except for the custom duties,
including for custom procedures, VAT, and excises at import):
- the enterprises of the State Association for Forestry “Moldsilva”, that would be
accumulated on a special account of the State Treasury and will be used for
regenerating, and protection of the forestry fund.
103. In response to requests for more information, the representative of Moldova added that the
Government of Moldova facilitated the adjustment process through the following tax-related measures
which were awarded on a case-by-case basis: rescheduling tax arrears for companies in restructuring;forgiving penalties for late payment of taxes; resc heduling social insurance contributions; forgiving
penalties for late payment of social insurance cont ributions; write-off tax liabilities of former State
companies in the framework of liquidations and br eak-ups; VAT credit for expenditures related to the
restructuring process agreed between the company a nd the creditors represented in the State Creditors
Council up to specified limits. In 1995, the Gove rnment had allocated MDL 180,000 to support the
introduction of new technologies. In 1996, there were no allocations.WT/ACC/SPEC/MOL/4/Rev.1
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104. In response to questions from members of the Working Party concerning the mechanisms and
policies used to enable the development programmes  for the agricultural sector, the representative of
Moldova stated that the development of the agricu ltural sector was supported by the Government with
the following measures:
(i) privatization of land and of State-owned agricu ltural enterprises, e.g., kolchoses and sovchoses;
(ii) restructuring of privatized farms supported by international aid agencies and establishment of an
Agency for Assistance to Farms in Restructuring (ARA);
(iii) support to agricultural research in the framework  of a major loan of an international aid agency;
(iv) improving the availability of credit at market rates to small farmers and preparation of a credit
line for the agriculture sector as a whole whic h would be financed by an international aid
agency;
(v) financial support programmes;(vi) improving the legislative framework. Moldova was redrafting the Law on the Normative Price
of Land and was preparing a Law on the Sale of Land. Although the necessary legislation to
regulate the trading of land was not yet in pl ace, efficient allocation of land and agricultural
machinery was facilitated through leasing and renting arrangements.
105. Some members of the Working Party asked for information on Government aid to investment
projects. In response, the representative of Moldova stated that Government ai d to investment projects
launched by the private sector was granted in the framework of: (i) concessions, in accordance withArticle 46, Law “On Foreign Investment”; (ii) free enterprise zones, in accordance with Article 46 ofthat Law and the provisions governing such zones; (iii) agreements with the BERD, including technical
assistance and exemptions from VAT. The following investment projects launched by the private sector
had received Government aid: REDECO according to the terms of the concessional agreement on
prospecting and exploitation of oil and gas (A rticle 26, 1999 Budget Law); modernization of
Thermocomenergo carried out by ROCARO. He stat ed that the Government support measures for
concessions were negotiated on an individual basis. They were not part of a Government investment
support programme. There were no administrative procedures for applying and receiving this
governmental assistance.
106. The representative of Moldova stated that any subsidy programmes provided by its
Government after accession would be administered in conformity with the Agreement on Subsidiesand Countervailing Measures and that all necessary information on noticeable programmes would beWT/ACC/SPEC/MOL/4/Rev.1
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notified to the Committee on Subsidies and Countervailing Measures according to Article 25 of the
Agreement upon entry into force of Moldova's Protoc ol of Accession. The Working Party took note of
those commitments.
- Technical Barriers to Trade
107. Some members of the Working Party asked Moldova to submit information of the measures
being taken to meet the requirements of the TBT Agreement. In response the representative ofMoldova said that Moldova was taking the following measures: was been elaborated the amendments
to the Law on Standardization, draft Law on Certification, as well as was introduced modification in
fundamental standards of the national standardization system of the Republic of Moldova. Mandatorystandards referred only to the safety of products (services). The existence of mandatory standards isconditioned by the absence of technical regulations. At present, the Department of Standards,Metrology and Technical Supervision is taking measures to introduce the concept of technicalregulations and the transfer of mandatory standards into the category of voluntary standards andtechnical regulations. Steps undertaken to ensure fulfillment of the TBT Agreement requirementsincluded the analysis of nonconformity and the adoption of measures for its removal, pursuing atechnical policy directed to applying of international standards (or their projects) while national
standards are elaborated. Information about Programme of national standards development was
published in Moldova - Standards edition "Buleti nul de Standardizare", which is available to
interested users The elaboration of national standards is carried out by technical committees onstandardization that consisted of specialists from interested parties. Moreover, newly developedstandards are being harmonized with relevant international or European standards. All standards arebeing revised every five years. In the course of the revision standards developed previously areharmonized with international or European standards. The enquiry point WTO/TBT had been
established according to Governmental Decision No.45 of 16 January 1998 “On some measures
related to accession of the Republic of Moldova to WTO and coordination of the state external
police” as part of the Department of Standards, Metrology and Technical Supervision.
108. The representative of Moldova added that at present there are in force normative documents
on standardization for the following products or product groups in Moldova:WT/ACC/SPEC/MOL/4/Rev.1
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The normative acts of standardization rel ating to Different Products/Product Areas
Normative documents on standardization Products/Product Groups
Medico-biological requirements to ensure that food products are
safe and meet minimum nutritional value requirements, issued by
the Ministry of HealthFood products
Safety requirements as part of product standards Broad range of non-food products
Norms and rules in construction Construction and building activity
Norms and rules on labour safety Services provided at the work place
Environmental protection norms, in cluding radiation safety General
From 20,000 regional standards GOST, available on the territory of the Republic of Moldova,
Moldova really applied approximately 8,000 standards, and approximately only 2,000 standardsare mandatory. The definition of technical regulation includes more types of normative
documents, including mandatory standards. Th e amendments to the Law on Standardization
and draft Law on TBT stipulated that from  1 January 2002 the application of national
standards would become voluntary. The application of a national standard would remainmandatory only by reference to a technical regulation, adopted by a public authority in
accordance with legitimate objectives, such as na tional security, preventing of misuse practices,
protection of the health and life of physical pers ons, of the health and life of animals, plants
protection, environment protection. Until 1 January 2002 authorities from the Republic of
Moldova were obliged to approve and to make known the technical regulations, which comprise
provisions from standards, if they consider it necessary to maintain th e mandatory character of
these provisions.
109. The representative of Moldova confirmed that Moldova would introduce voluntary standards to
prepare for its accession to the WTO.  Against a background of a difficult economic situation, theabsence of other obligatory technical requirements,  Moldova considered mandatory standards the only
practical way to keep out poor quality or danger ous products. The newly developed standards were
being harmonized with ISO standards and the ex isting standards would be harmonized over time
through a process of periodic revisions. The followi ng publications contained information on technical
regulations, standards and procedures:
- "Buletinul Standartisarii”  (published in Moldova every three months in Romania
and Russian languages);
- "Monitorul Oficial” (published in Moldova monthly);WT/ACC/SPEC/MOL/4/Rev.1
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- "Buletinul Standardizarii” (published in Romania monthly in Romanian
language);
- “Informationnii Ucazateli Standartov” (published in Russian federation monthly
in Russian language).
110. Some members of the Working Party request ed information concerning certification
procedures. In response, the representative of  Moldova stated that product and service
certification in the Republic of Moldova was carried out in the framework of the National
Certification System, on the base of the Law on Consumer Protection of the Republic ofMoldova, Law on Standardization, Decision of the Government of the Republic of Moldova No.414 of 13.06.94, No. 696 of 9.10.95 “On product certification in the Republic of Moldova”, inconcordance with ISO, ISO/CEI Guides, normative documents of National Certification System,harmonized with those enumer ated. In conformity with General Procedure PG-01-05-92
mandatory and voluntary certification is carried out in the Republic of Moldova. Certificationhad mandatory character only for products or services, which can affect life, health, consumer’sproperty and environment. These products or s ervices were introduced in the Nomenclature of
products and services subject to mandatory certification, approved by the Government of the
Republic of Moldova.
111. The representative of Moldova said that ce rtification procedures, testing methods and
certification activities are the same for domest ic and imported produc ts, independent of the
product’s origin and property form of the applicant. Free access to all normative documentsand certification procedures was guaranteed for all applicants of certification from Republic ofMoldova and other countries. Single form certifica tes, defended with special signs were issued in
National Certification System of the Republic of Moldova. Moldova recognized certificates ofconformity, issued by national certification bodies with which bilateral or multilateral
agreements of recognition were signed. Recently the draft Law on Certification had been
submitted to the Parliament. At present, certification requirements for specific classes ofproducts were spelled out by the each accredited body and approved by the Department ofStandards, Metrology and Technical Supervision in conformity with the Moldovan StandardSM 45-2 “National Certification System of the Republic of Moldova Product certification”.
112. The representative of Moldova said that currently, the certification regime in the
Republic of Moldova was carried out by 22 certification bodies and 71 testing laboratories,accredited within National Certification System of the Republic of Moldova by NationalAccreditation Center in conformity with provisions of EN 45000 Standard.   The Nomenclature
of products-subject to mandatory certification include:WT/ACC/SPEC/MOL/4/Rev.1
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- Foodstuff;
- Electronics;
- Products and technologies with high level of danger;
- Goods for children;
- Cosmetics products;
- Construction materials;
- Machines and equipment;
- Furniture.
The services subject to mandatory certification included hotels, dry cleaning, motor-repair,
audio and video repair, household electrical appliances repair services.
113. Through their participation in the technica l committees, domestic producers were being made
aware of the contents of drafts on standards.  Besides the national standards Moldova applied
international standards (ISO, IEC), regional standa rds (GOST, EN), Romanian standards (STAS, SR).
Moldova respects International Conventions require ments regulating the safety of chemical, toxic,
inflammable, explosive and other substances. In  Moldova, there were no specific regulations or
requirements covering electrical safety, telecomm unications equipment, me dical devices and other
classes of equipment. Production certification in the Republic of Moldova is carried out according to the
TBT Agreement conformity requireme nts. Moldova did not apply specifi c certificate classes, excluding
hygienic certificates introduced by the Ministry of  Health, as component part of certificates of
conformity. The requirements related to hygienic certif icates are specified in the technical regulations of
the Ministry of Health. The State Inspections fo r Consumers' Rights Protection and products quality
control performs quality control during the production process, storing and commercialization. Domestic
products were subject to the same standards as foreign goods.
114. In response to additional questions concerning  certification procedures, the representative of
Moldova said that only certificates from certifica tion bodies in the CIS countries and Romania are
recognized currently in Moldova.  Recognition by certification bodies  of Moldova of the certificates
issued in CIS countries and Roma nia are based under the bilateral agreements signed with these
countries. Moldova is ready to start negotiation wi th other countries for recognition of certification
procedures and conformity certificates. The representative of Moldova said that Article 4.4 of the Lawon Standardization of 22 September 1995 expressly provided that Moldov an standards had to be based
on modern scientific research, t echniques and technology, on international and regional standards and on
advanced standards of other countri es. Also Article 18 of the Law stipulated as the main objective of
international co-operation between Moldova and ot her countries was the harmonization of national
standards with international and regional standard s and with advanced national standards of other
countries.WT/ACC/SPEC/MOL/4/Rev.1
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115. In response to further questions the representative of Moldova stated that newly prepared
legislation had been introduced to address the following deficiencies in relation to the TBTAgreement:
- concept of technical regulations and transfer of mandatory standards into the category
of technical regulations;
- the avoidance of unnecessary obstacles to international trade;
- the non-discrimination and national treatment;
- harmonization and participation in international standardizing bodies;
- equivalence of technical regulations;
- mutual recognition of conformity assessment procedures;
- transparency: statement on the implementation and administration of the Agreement,
inquiry point and notification, the publication used to announce that work is
proceeding on draft technical regulation or standards and procedures for assessmentof conformity or the text of approved documents are published in.
116. He provided the following information on the status of implementing legislation:
Stage of implementation of Moldova's legislation related to TBT
No. Draft laws and regulationsCirculation of the
final draft for
commentsAt
Government
for approvalAt Parliament
for approval
1. Law on Certification on Goods and
ServicesXX X
2. Amendment Law on Standardization X X X
3. Amendments to Law on Protection of
Consumers' RightsXX
4. Law on Technical Barriers to Trade X X
5. Law on Accreditation X
6. Law on Industrial Security X
7. Amendments to the Statute of
Phytosanitary InspectorateX
Note:
- Normally, the expected length of time for presentation of comments on draft legislation or
normative acts with afterwards approval by the Government and adoption by the Parliament is
5 months maximum. Taking into consideration the priority set by the presidential programme
this term is expected to be shorter.
117. In response to requests for information concerning the compatibility of the draft legislation
with the requirements of the WTO Agreement on Technical Barriers to Trade, the representative ofMoldova provided the following table:WT/ACC/SPEC/MOL/4/Rev.1
Page 61
Moldovan Legislation/Draft Legislation Requirements under
the WTO
The draft Law on TBT (Articles 2 and 6) provides for the introduction ofnew standards, technical regulations and conformity assessment proceduresshould be fully compatible with the TBT Agreement.Generally agreed
principle in WTOaccession
negotiations
The draft Law on TBT and the amendments to the Law on Standardizationwill provide for implementation and administration of the agreement.Article 15.2 and
TBT Committee
Decision (/TBT/I)
The draft Law on TBT (Article 13-14) provides provision forEstablishment and operation of a single Contact Point for Information
("inquiry point"). The inquiry point was created within the Department of
Standards, Metrology and Technical Supervision. Currently the database is
preparing and will be fully operational by the day of accession.Article 10
The draft Law on TBT (Articles 13 and 18) provides for Identification of
authority responsible for notifications, publications and other internal
procedures to ensure transparency obligations are met on an ongoing basis.Articles 2, 3, 5, 7,
10, 15.2,
Annex 3 andG/TBT/I
The draft Law in TBT (Article 6) provides identification of publication
where notices of proposed technical regulations and conformity assessment
procedures will appear: These are "Monitorul Oficial al RepubliciiMoldova" and "Buletinul standardiz ării".Articles 2.9.1, 3.1,
5.6.1, 7.1, 10.1.5
The draft Law on TBT (Article 13, 16 ) and the Decision of the
Department of Standards, Metrology and Technical Surveillance on
establishing the Information Center for Standardization and Certification
which is the authority responsible for making notifications to the WTO;Articles 2.9.2,
2.10.1, 3.2,
3.3, 5.6.2, 5.7.1, 7.2,
7.3, 10.7, 10.10
The draft Law on TBT (Article 6) will ensure that the regulatory authoritiesafford non-discriminatory consideration of comments in the preparation of
a final regulation; Regarding the elaboration of the technical regulation, the
concerned bodies will allow for a reasonable period of time for countries-
members and interested parties to present their considerations, but no
longer than 6 months with exception for certain cases (depending onurgency consideration).Articles 2.9.4,
2.10.3,3.1,3.3, 5.6.4,
5.7.3, 7.1, 7.3
The draft Law on TBT (Article 6) ensures that regulatory authorities allow
a reasonable period of time between the final publication of a technical
regulation and conformity assessment procedure and its entry into force so
that suppliers can adapt;Articles 2.11, 2.12,
3.1, 5.8, 5.9, 7.1
The draft amendments to the Law on standardization (Article 10) providesfor publication of the programme for developing standards should be
published every 6 mouths and draft the Law on TBT (Article 6) provides
for publication of notices about the intent to draft technical regulations.Article 4,
Annex 3 (J, K, L, N,
0);
Article 8.1
The draft "Law on TBT", the draft "Law on Certification" provides forDevelopment and Application of Technical Regulations and Conformity
Assessment Procedures: Existence of legal and/or administrative
underpinnings (or "reasonable measures" as appropriate) to ensure ongoingcompliance with provisions of the agreement concerning, in particular:Articles 2, 3, 5,
6, 7
The draft Law on TBT (Article 12) and the draft Law on Certification ofGoods and Services (Article 13.3) provides for non-discrimination with
respect to the treatment of products.Articles 2.1, 3.1,
5.1, 5.2, 7.1WT/ACC/SPEC/MOL/4/Rev.1
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Moldovan Legislation/Draft Legislation Requirements under
the WTO
The draft "Law on TBT" (Articles 2 and 6.2 ) provides for the prohibitionof unnecessary Obstacles to international trade and the Consideration ofless trade-restrictive alternatives to fulfilling legitimate objectives;Articles 2.2, 3.1,
5.1, 5.2, 7.1
The draft "Law on TBT" (Article 6.7) the ongoing review of technicalregulations to ensure they are appropriate to achieve the desired legitimate
objective;Article 2.3, 3.1, 7.1
The draft "Law on TBT" (Articles 5 and 6) the amendments of "Law on
Standardization"(Article 4.2) provides for the consideration of appropriateinternational standards, guidelines and recommendations as a basis for
technical regulations and conformity assessment procedures;Article 2.4, 3.1, 5.4,
7.1
The draft "Law on TBT" (Article 7) provides for the consideration of
equivalent technical regulations of other Members;Articles 2.7, 3.1, 7.1
The draft "Law on Certification" (Article 7) provides for the acceptance of
the results of conformity assessment procedures conducted by bodies in an
exporting Member country in case that Moldova signed bilateral agreement
on mutual recognition or in case of accession to specialized regional or
international organizations.Articles 6, 7.1
The relevant ministries and institutions will implement a non-
discriminatory and cost-based fee structure. (*) as provide for in the draft
Law on Certification of Goods and services (Article 15.3)Articles 5.2, 7.1,
10.4
Development and Application of Standards and Conformity Assessment
Procedures: Existence of legal and/or administrative underpinnings (or
‘reasonable measures’ as appropriate) to ensure ongoing compliance withprovisions of the agreement concerning, in particular:Article 4 and
Annex 3,
Article 8
The draft Law on TBT (Article 12) provides for non-discrimination
treatment with respect to the treatment of products.Annex 3 (D), Article
8.1
The Moldovan Standards SM 1-0.1999 (the amendments N0.1) providesthat the Standards will not be used for the arbitrary and unjustified
discrimination among countries having analogous conditions and will notcreate any unnecessary obstacles to international trade;Annex 3 (E), Article
8.1
The draft Law on TBT (Articles 5, 6 and 8) and the Moldovan Standards
SM 1-0, make provision for consideration of appropriate international
standards, guidelines and recommendations as a basis for standards;Annex 3 (F), Article
8.1
The draft Law on TBT (Articles 13, 15, 16) and amendments No.1 to SM1-3 establish a non-discriminatory and cost-based fee structure.Annex 3 (M),
Annex 3 (P), Article8.1,
Article 10.4
118. In response to questions from members of the Working Party the representative of Moldova
noted that an inquiry point had been created within the National Center for standardization and
certification. The address was:WT/ACC/SPEC/MOL/4/Rev.1
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28, Coca street,
Chisinau city
Republic of Moldova
Tel: (373-2) 74 87 92
Fax: (373-2) 75-05-81
E-mail: Moldovastandard@standart.mldnet.comDirector: Mr. Keptene Pavel
119. The representative provided further information to the Working Party on operation of the
TBT regime in Moldova in document W/ACC/MOL/16.
120. The representative of Moldova said that the Go vernment of Moldova was aware that Moldova's
standards and inspection regime did not yet fully co mply with the requirements of the TBT Agreement.
Moldova would take the necessary steps, pr ior to its WTO accession, to remedy the existing
deficiencies.
- Sanitary and phytosanitary measures
121. Some members of the Working Party requested detailed information concerning agricultural
products, in particular how Moldovan standards a nd regulations compared with those of the Codex
Alimentarius (Codex), Organization of Internati onal Epizootic, and the European Plant Protection
Organization. In response, the representative of Mol dova said that Moldovan standards and regulations
fully complied with the regulations of the Codex Alimentarius. Moldova was a member of theOrganization of International Epizootic and was usin g its regulations. Moldova was not a member of the
European Plant Prot ection Organization.
122. In response to requests for information, the representative of Moldova said that the following
products required a hygienic certificate from the Stat e Sanitary-Epidemiological Service: raw materials,
machines and equipment the use of which may constitute a source of danger for human health; goods forchildren; materials and equipment used in drinking  water systems; cosmetics and perfume; soap and
detergents; textiles. The certificate for domestic goods was issued on the basis of relevant
documentation, including the results of hygienic test s. For foreign products, the certificate was issued
based on a safety certificate of the exporting country and additional tests in Moldova.
123. Concerning the veterinary inspection and quarantine requirements that applied to livestock,
animal products, fish, veterinary drugs and animal f eed, the representative of Moldova said that the
Moldovan Law on Veterinary Activity obliged holders of  livestock to: (i) respec t the veterinary, sanitary
and zoo-hygienic rules regarding the maintenance, feeding reproduction and exploitation of animals; (ii)
take the necessary actions to prevent infectious di seases and, to eradicate sources of infections and
prevent their spreading; (iii) ensure systematic medical examination of personnel and prohibiting theWT/ACC/SPEC/MOL/4/Rev.1
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employment of sick persons; (iv) notify without dela y the veterinary authorities about the existence or
suspicion of existence of a disease which could re quire the imposition of quarantine measures, isolate
the sick or dead animals, and prevent the use or sale of their meat; (v) no tify within 24 hours the local
veterinary authorities of the acquisition of animal s from other areas of the country and keep these
animals separate from the existing stock; (vi) provid e to the veterinary authorities access to the animals
for inspection purposes; (vii) sell animals, products and meat only with the authorization of the local
veterinary service; (viii) keep the facilities (stables, pastures, water supply) in clean condition, in
accordance with veterinary regulations. The importa tion into Moldova of livestock for breeding was
only permitted if: (i) no infectious diseases had occu rred, in conformity with the requirements of the
Republic of Moldova; (ii) an inspection had been  carried out in the country of exportation by a
recognized agency, at least 30 days prior to importati on; (iii) the livestock to be imported into Moldova
did not have any disease; (iv) and the radioactivity  of the livestock did not exceed bk/kg. He further
added that the importation into Moldova of livesto ck for slaughtering was only permitted if: (i) no
dangerous infectious diseases had occurred during the last 30 days prior to importation in the country ofexportation; (ii) it was in good condition; (iii) and th e radioactivity of the livestock did not exceed bk/kg.
The conditions for the importation of fish and seaf ood products were determined on a case by case basis.
No specific requirements existed for the importa tion of veterinary drugs and animal feed.
124. The representative of Moldova presented the follo wing table, containing  an overview of the
regulations, the goods concerned and the competent authority:
Rules Goods/Objects Competent Authority Certificate Issued
Medico-Biological
Requirements
No.5061-89
1. Food safety
requirements
(harmonized with the
Codex Alimentarius)food products State
Sanitary-Epidemiological
Service (Ministry of
Health)Hygiene
Certificate
Sanitary requirements as
part of product standardsraw-materials, machines and
equipment the use of which may
constitute a source of danger forhuman health;
goods for children;
materials and equipment used in
drinking water systems;
cosmetics and perfume;soap and detergents;
- textilesState
Sanitary-Epidemiological
Service (Ministry ofHealth)Hygiene
CertificateWT/ACC/SPEC/MOL/4/Rev.1
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Rules Goods/Objects Competent Authority Certificate Issued
Phytosanitary
requirements
(harmonized with theEuropean Plant
Protection Organization)products, materials or objects which
could contribute directly or
indirectly to the spreading of pest,diseases or objects under
phytosanitary quarantineChief State Inspectorate
for the Phytosanitary
Quarantine (Ministry ofAgriculture)Import Permit,
Phytosanitary
Certificate (forexport)
Veterinary requirements
(harmonized with
International Epizootic
Organization)live animals of all kinds;
meat and meat products;
milk and milk products;
poultry, eggs and egg products;
fish and sea-food-products and raw
materials of animal origin;
products of animal origin for animalfeeding;
- goods for veterinary use.State Veterinary
Inspectorate (Ministry of
Agriculture)Sanitary Avis,
Authorization,
Veterinary Health
Certificate
Veterinary requirements
(harmonized with
International Epizootic
Organization)live animals of all kinds;
meat and meat products;
milk and milk products;
poultry, eggs and egg products;fish and sea-food-products and rawmaterials of animal origin;products of animal origin for animalfeeding;
- goods for veterinary use.State Veterinary Inspectorate
(Ministry of Agriculture)Sanitary Avis,
Authorization,
Veterinary Health
Certificate
Notes:
- The competent authority prepared the relevant te chnical requirements jointly with Moldovastandard.
Testing and certification for SPS purposes was the competence of the body indicated in Column 3. Fortesting, these bodies could engage the services of accredited State laboratories.
- For product standards, which were composed of SPS and other non-SPS components, Moldovastandard
on the basis of the hygiene certificate (for the SPS components) and additional testing (for the non-SPS
components) did certification for conformity with the relevant product standard (conformity certificate).
Hygiene Certificate of the State Sanitary-Epidemiol ogical Service: Domestic producers were issued a
hygiene certificate with a validity of up to three years on condition that th eir production method did not
change. Importers received a certificate valid only for the shipment concerned. Imported goods were
inspected at the customs office of the district wher e the importer was registered. Importers of perishable
goods could conclude an agreement by which the foreign production site was issued with a hygiene
certificate of up to three years’ validity and the g oods were stamped with a special stamp indicating that
the goods had been produced according to Moldovan SPS requirements. In all cases the issuance of the
hygiene certificate was subject to examination, either  of the shipment or of the production facilities
(including the products) and subject to the same sanitary requirements.
Import Permit of the Chief State Inspectorate for th e Phytosanitary Quarantine: This document was only
required for imported goods. Importers had to present the following documents: phytosanitary certificate
from country of origin; laboratory analysis (in some cases); certificate about disinfestation or
disinfection treatment.WT/ACC/SPEC/MOL/4/Rev.1
Page 66
Phytosanitary Certificate of the Chief State In spectorate for the Phytosanitary Quarantine: This
document was only required for goods to be exported. Exporters had to submit the following
information: description of the consignment; laborator y analysis (in some cases ); indication of possible
disinfestation or di sinfection treatment.
Veterinary Certificates: Domestic producers were issu ed an authorization with a validity of up to three
years on condition that their production method did not  change. The facilities were inspected in random
intervals during this period. For imported products, every lot imported was inspected. Upon importation
the importer had to present the sanitary avis, stam ped by the veterinary authorities of all transit
countries, the veterinary certificate of the exportin g country and a quality certificate issued by the
producer. The State Veterinary Insp ectorate would inspect the lot and, if cleared, a veterinary health
certificate was issued.
125. In response to additional questions, the representa tive of Moldova said that hygiene certificates
issued by competent institutions were recognize d. Moldova recognized company hygiene certificates if
the company had concluded an agreement with the relevant Moldovan body. There were no additional
tests conducted on foreign goods by the Government  of Moldova if hygiene certificates issued by
recognized foreign bodies accompanied these.
126. Some members of the Working Party requested more information concerning the structure of
the relationship between Moldovastandard and the Ministry of Agriculture with respect to the
development of standards for agricultural products. Th e representative of Moldova said that the relevant
departments of the Ministry of Agriculture a nd Moldovastandard created joint committees, which
determined product standards for agricultural goods. The standards were the same for imported and fordomestically produced goods.
127. Some members of the Working Party requested information on the inspection procedures that
took place at the border for imported products and during the production process for domestic products.
The representative of Moldova said that sanitary a nd phytosanitary requirements were enforced through
inspections and testing.
Sanitary Requirements: Domestic producers and foreign producers which had concluded a special
agreement were inspected by a team of experts fro m the State Sanitary-Epidemiological Service and
Moldovastandard once before the hygiene certificate wa s issued and then at regular intervals. Taking
samples and carrying out tests on these samples inspected imported goods.WT/ACC/SPEC/MOL/4/Rev.1
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Phytosanitary Requirements: Prior to shipment, the foreign exporter had to send a request to the Chief
State Inspectorate for the Phytosanitary Quarantine i ndicating the goods to be shipped. The Inspectorate
would issue a preliminary import permit which stipulat ed specific phytosanitary requirements which the
goods to be shipped had to satisfy. Upon arrival th e goods would be inspected. If they satisfied the
requirements the preliminary import permit would be stamped becoming definitive.
Veterinary Requirements: Prior to shipment, the fo reign exporter had to send a request to the State
Veterinary Inspectorate indicating the goods to be shipped. The Inspectorate would issue a preliminary
import permit, the sanitary avis, which had to be stamped the veterinary authorities of all transit
countries. Upon arrival taking samples and carryin g out tests on these samples inspected every lot.
When goods subject to veterinary requirements were  unloaded (importation) or loaded (exportation) a
representative of the State Veterinary Inspectorate had to be present.
128. In response to additional questions, the representa tive of Moldova said that an importer wishing
to appeal against a decision of Moldovastandard w ould have, in the first instance, to write to the
Director-General of Moldovastandar d. Appeals against decisions of the Chief State Inspectorate for the
Phytosanitary Quarantine, State Veterinary Inspect orate and Sate Sanitary-epidemiological Service
should be addressed, in the first instance, to the he ad of the organization. In the second instance, the
importer could file a lawsuit in the economic courts.
129. Concerning transparency, the representative of Moldova stated that Moldovan standard SM 1-
3:1997 paragraphs. 3.8.1 and 3.8.2 provided for the drafts of standards to be subject to publiccomment during 60 days. The official publication “Buletinul standardizarii” published documentsdrafted by technical committees and informed the public of time limits for comments.
130. In response to questions from members of the Working Party the representative of Moldova
noted that an inquiry point had been created within the National Center for standardization andcertification. The address was:
28, Coca street,
Chisinau city
Republic of Moldova
Tel: (373-2) 74 87 92Fax: (373-2) 75-05-81
E-mail: Moldovastandard@standart.mldnet.com
Director: Mr. Keptene Pavel
131. Some members of the Working Party said that there were areas where Moldova’s SPS regime
was not fully compatible with the SPS Agreement, and asked Moldova to provide information onmeasures and the timeframe for bringing them into conformity. The representative of MoldovaWT/ACC/SPEC/MOL/4/Rev.1
Page 68
presented the Working Party with further information on the SPS regime in Moldova in the following
table:
Description of the
principles and WTO
referenceCompliance by Moldova
1. Standstill: the
introduction of new
standards, animal healthregulations and food
safety regulations shall
conform to SPS
Agreement principles
(general agreed principalin WTO accession
negotiations).Moldova agrees that any introduction of new standards, animal health
regulations and food safety regulations will conform to SPS
Agreement.
2. Establishment andoperation of a singleContact Point for
Information (“enquiry
point”) (Article 7 and
Annex B.3).The Supplement (Art. 5) establishes the Main State Inspectorate on
Phytosanitary Quarantine, the Sanitary-Epidemiological Service(Ministry of Health) and the Veterinary Services (Ministry of
Agriculture) responsible for the preparation of the documents on SPS
measures to be provided in response to any Member’s request through
the single inquiry point, which was set up within Department of
Standards.
Article 5 of the Supplement stipulates:The Main State Inspectorate on Phytosanitary Quarantine will establish
within its field an unit, responsible for supplying through the singleinquiry point answers to all reasonable questions of WTO members, as
well as to supply appropriate documents on:
any phytosanitary regulation adopted or proposed on its territory;
the procedures of determining the risk and the corresponding level ofthe phytosanitary protection;
the commitment or participation of the Republic of Moldova or of the
constituting bodies of its territory in the international phytosanitary
systems and bodies, as well as the texts of agreements and
arrangements.
3. Transparency:notification and access to
documentation (Article 7
and Annex B, alsoG/SPS/7):The Supplement outlines WTO compatible notification and
transparency principles in paragraphs 3,4 and 5 which stipulate the
following:
2. Article 3:
The Main State Inspectorate on Phytosanitary Quarantine is subjected
to the Government of the Republic of Moldova and is designated as
Central Notification Body, regarding the modification of phytosanitary
measures and in order to supply information about the phytosanitaryactivity.
3. Article 4:
In the case of the absence of an international standard, directive or
recommendation, or in case the contents of a standard, directive orWT/ACC/SPEC/MOL/4/Rev.1
Page 69
Description of the
principles and WTO
referenceCompliance by Moldova
recommendation do not correspond to the contents of an international
standard, directive or recommendation, and which can have a
significant effect on the trade undertaken by other countries, members
of WTO, the Main State Inspectorate on Phytosanitary Quarantine:
publishes an announcement, in an early stage in such a way, as to allow
the countries-members of WTO to get acquainted with the emerging
changes and corresponding regulations;
will notify the other members, the WTO Secretariat, of products,
intended to be regulated, together with a short description of theobjective and motivation for the proposed regulation. Such notifications
are to be done during an earlier stage, when it is still possible to
introduce amendments, and when it is still possible to take into account
comments;
will supply, at the request of the members, through the inquiry, copies
of the proposed regulation, and to the extent possible will identify theelements, differing fundamentally from the international standards,
directives or recommendations;
at the appropriate time, to supply the countries members of WTO
written comments at their request, in order to take into considerationthe comments and the results of discussions.
(see Article 5 presented above)
identification of authorityresponsible for making
notifications to the WTO
and ensuring
transparency obligationsare met on an ongoing
basis (Annex B.5 (b) and
Annex B.10);The Main State Inspectorate on Phytosanitary Quarantine will
undertake notification obligations and will ensure that transparency
requirements are met on an ongoing basis (see Articles 3 and 4
presented above).
(B) establish guidance or
law requiring publication
of proposed measures at
an early stage forcomment (Annex B.5
(a));Principles applied concerning early publication are laid out in Article 4,
paragraph (i) of the Supplement (see Article 4 presented above).
(C) provision in law or
administrative procedure
to provide copies of
proposed measures to
WTO Members (AnnexB.5 (c)); andArticle 4, paragraph (iii) of the Supplement provides for notification
and provision of copies of proposed measures to WTO Members (see
Article 4 presented above).WT/ACC/SPEC/MOL/4/Rev.1
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Description of the
principles and WTO
referenceCompliance by Moldova
(D) require in law or
administrative procedure,
a reasonable period of
time for comment from
Members and the public
and establishment of aprocess to take comments
into account without
discrimination (Annex
B.5 (d)).Article 4, paragraph (ii) of the Supplement provides for a reasonable
time for comments from WTO Members (see Article 4 presented
above).
4. Necessity: measuresare applied only to the
extent necessary to
protect human, animal or
plant health (Article 2.2)Article 7, paragraph (ii) of the Supplement requires that phytosanitary
measures be applied only to the extent to assure the appropriate level of
protection.
ii. for the appreciation or support of certain phytosanitary measures for
the realization of the respective level of phytosanitary protection, theMain State Inspectorate on Phytosanitary Quarantine insures that these
measures are only those necessary for exerting the needed level of
phytosanitary protection as determined by the Law on Phytosanitary
Quarantine.
5. Regulations Based on
Science: regulationsgoverning animal and
plant health and food
safety shall based on
scientific evidence
(Articles 2.2, 3.3, and
5.2).Article 7 of the Supplement requires scientific evidence to be used in
taking SPS measures.Article 7 stipulates:
While determining the risk, there are taken into consideration the
scientific proofs, existing in this domain, the methods and procedures
of production, model inspections, the spread of diseases, of plants and
weeds pests, the existence of certain zones where there are no
quarantine objective, the conditions of the environment, of quarantine
regimes and so on.
6. Harmonization: to theextent possible, members
shall follow international
standards, guidelines, and
recommendations in
establishing SPSmeasures (Articles 3.1,
3.3, and 3.4).Articles 2 and 6 of the Supplement address the interest of Moldova in
following international standards.
Article 2 of the Supplement gives the definition of the Harmonization
principle:
Harmonization – establishment, recognition and application of
phytosanitary measures, common with those applied in other countries,members of WTO.
Article 6 of the Supplement stipulates:
The Main State Inspectorate on Phytosanitary Quarantine of the
Republic of Moldova represents the interests of the State regarding thephytosanitary quarantine in competent international organizations and
will fully participate in the activities of international organizations and
their subsidiary bodies, especially the European Plant Protection
Organization, undertaking its activity on the basis of the International
Convention for plant protection, in order to promote within these
organizations the elaboration and periodical examination of standards,
directives and recommendations regarding all these aspects ofphytosanitary measures and their conformity with internationalWT/ACC/SPEC/MOL/4/Rev.1
Page 71
Description of the
principles and WTO
referenceCompliance by Moldova
standards, directives and recommendations.
7. Equivalence: members
shall recognize different
measures that achieve the
same level of protection
(Article 4).The concept of equivalence is recognized in Article 9 of the
Supplement which stipulates:
The Main State Inspectorate on Phytosanitary Quarantine recognizes
phytosanitary measures of other countries – members of WTO as equal,
even when these differ from the domestic ones, and that being proved
by their usage, it is possible to obtain an adequate level of
phytosanitary protection for the Republic of Moldova.
8. Risk assessment:developing scientific
evidence and conductingrisk assessments to
ensure that measures are
based on science and
applied only to the extent
necessary to protecthealth (Articles 5.1, 5.2
and 5.3).Articles 7 and 8 of the Supplement requires that risks be assessed and
there be development of scientific evidence to ensure that SPS
measures are based on science and applied only to the extent necessaryto protect health.
9. Regional conditions:measures take intoaccount the regional
characteristics both of the
areas from which
products originate and the
areas for which they aredestined (Article 6 and
Annexes A.6 and A.7).Article 12 of the Supplement addresses regional conditions with regard
to regional characteristics both of the areas from which productsoriginate and the areas for which they are destined.
Article 12 stipulates:
The Main State Inspectorate on Phytosanitary Quarantine will insure
that the measures would be adopted in accordance with the
phytosanitary characteristics of the zone – be it totally of a country, apart of the country or the entity or parts of other countries – where the
products has its origins and to which it is supplied.
While evaluating the phytosanitary characteristics of the region, there is
going to be taken into account, inter alia, the level of expansion of pestsand specific diseases, the existence of programmes of their fight and
adequate criteria or directives, which may be elaborated by the
competent international organization.
10. Non-discrimination:measures do not
arbitrarily or unjustifiably
discriminate betweendifferent members or
between domestic and
foreign suppliers (Article
3 and Annex C.1 (a) and
(d).Article 10 of the Supplement provides for non-discrimination:
The Main State Inspectorate on Phytosanitary insures that the
phytosanitary measures would not create discrimination between the
countries members of WTO, where there are similar conditions,including the territory of the Republic of Moldova and other WTO
countries – members.
11. Control, inspection
and approval procedures:
ensure that procedures,
including systems forapproval of the use of
additives or forArticle 11 of the Supplement fully implements the SPS provisions
regarding control, inspection and approval procedures.WT/ACC/SPEC/MOL/4/Rev.1
Page 72
Description of the
principles and WTO
referenceCompliance by Moldova
establishing tolerances
for contaminants in
foods, beverages or
foodstuffs comply with
the Agreement (Article 8
and Annex C).
132. The representative of Moldova stated that  Moldova would ensure the implementation
both the TBT and SPS Agreements prior to accession and would apply internal legislation inconformity with the provisions of the WTO Agree ments on TBT and SPS. In the elaboration of
any legislation concerning such measures Mold ova would ensure their full conformity with the
relevant WTO provisions.  The Working Party took note of this commitment.
- Trade Related Investment Measures (TRIMs)
133. The representative of Moldova stated that in Moldova there were no trade-related investment
measures of the kind covered by the TRIMS Agre ement. Moldovan legislation did not contain an
authority to apply TRIMs, either at the central or sub-central level. He stated that the Government of
Moldova would ensure that any trad e related investment measures were introduced in the future
would be fully in conformity with the requirem ents of the WTO Agreement on TRIMs.   The
Working Party took note of this commitment.
- State trading practices
134. Some members of the Working Party asked for a list of the enterprises included in the State
Register of companies which were major producers in the domestic market and they asked for anotification of what each of these companies produce d. In response, the representative of Moldova said
that at the beginning of the transition process large Former State companies were automatically
considered monopolies because they were the only Mol dovan suppliers in their domains. In reality, they
had a small share of the market as more and more foreign products were imported. Against thisbackground the Government no longer compiled this list.
135. Some members of the Working Party asked for confirmation that Moldova had no fully or
partially State-owned enterprises which received any ex clusive or special rights or privileges, and that
the enterprises in the energy sector listed in  document WT/ACC/MOL/2/ Add.2 did not correspond to
the definition in the Understanding on the Interpre tation of Article XVII of the GATT 1994. In response,WT/ACC/SPEC/MOL/4/Rev.1
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the representative of Moldova confirmed that ther e were no State-trading enterprises covered by the
provisions of Article XVII of th e GATT 1994. Three of the five suppliers of energy in Moldova, i.e.
Moldovagas, Moldenergo and Thermocom, were de facto , but not de jure , sole suppliers, and did not
have any exclusive or special rights or privileges.
136. In response to further questions concerning the large enterprises that had at least 25 per cent
State equity ownership and engaged in international trade, the representative of Moldova said that in
Moldova every enterprise irrespective of ownershi p had the right to engage in foreign trade. He
submitted a list of enterprises that had at least 25 per cent State equity ownership that engage in
international trade.
137. Some members of the Working Party noted that Article 14 of the Law “On Foreign Economic
Activity” appeared to grant a state monopoly on the import and exportation of certain types of goods.Those members asked whether Moldova intended to preserve a state monopoly in the trade of anyproduct. In response, the representative of Moldova stated that currently Moldova had no statemonopoly in the trade of any product and did not intend to exercise any. In reply, some members ofthe Working Party asked whether Moldova intended to notify its state trading enterprises underArticle XVII of the GATT 1994. In response, the representative of Moldova stated that Moldova
intend to present notifications on state tr ading enterprises in accordance with the
Understanding on the Inte rpretation of the Article XVII of the GATT 1994.
138. The representative of Moldova stated that if Moldova were to introduce state trading as
defined by the Understanding on Interpretation of Article XVII of the GATT 1994, it would ensurethat all relevant regulations were in conformity with the requirements of Article XVII of the GATT
1994 and the Understanding on Interpretation of Article XVII of the GATT 1994, including thoseprovisions requiring the application of "commercial considerations" in the sale and purchase of statetraded commodities. He confirmed that Moldova would observe the provisions of Article XVII of theGATT 1994, the WTO Understanding on that Article, and Article VIII of the GATS regarding State
trading.  The Working Party took note of these commitments.
- Free Zones, Free Economic Zones
139. The representative of Moldova said that the Moldovan legislation relating to free zones was
Law No. 1415-XII of 25 May 1993 “On Free Enterprise Z ones”. They would be fully subject to future
WTO commitments of Moldova. He  provided the following table:WT/ACC/SPEC/MOL/4/Rev.1
Page 74
Location Type Status
Chisinau free zone operational
Tvarditsa free economic zone operational
Giurgiulesti/Danube free zone planned
Ungheni free zone planned
Taraklia free zone planned
Vulcanesti free zone planned
140. So far, only two of these zones were operat ional - Expo-Business-Chisinau and "Tvardita".
The Parliament and the Government of the Republic of Moldova established the “Expo-
Business-Chisinau” Free Enterprise Zone (F EZ) (Law No.625-XIII of  3 November 1995). The
legislation provides incentives, guarantees, and privileges for businesses established in the FEZ.
The residents of FEZ may be foreign natural and legal persons as well as Moldovan legal
entities established with foreign investment.  The Administration of the FEZ on a competitive
basis, with an account of the size and the kind of investment, type of activity and its compliancewith the FEZ development directions register the residents of FEZ. The competitions were
announced at the Administration’s initiative  as on the basis of applicant’s projects. Current
activities in Expo-Business-Chisinau zone were split  approximately in the following way (data are for
the first half of 1997 and 1998 respectively): 57,5 per cent and 42.2 per cent trade, 14.6 per cent and6.9 per cent industrial production and 27.5 per cent and 45.9 per cent services. The portion of importsgenerated by the free trade zone accounts for 4 per cent of the total imports of Moldova. The portionof re-export from this zone in total exports accounts for 1.2 per cent. He said that normal customsformalities, taxes and tariffs applied to goods entering the rest of Moldova from a free economic zoneand a free zone. He added that there were no special eligibility criteria. All enterprises - domestic,joint ventures, foreign and foreign-owned – were allowed to operate in the free economic zones and
take full advantage of the incentives available.
141. In response to questions concerning the advantages offered by the zones, the representative of
Moldova said that Moldovan legislation offered guarantees and privileges to the residents. The FreeEnterprise's Zone was open for the following licensed types of activities: organization of fair andexhibitions, information and advertising, leasing, banking and insurance, tourism and hotel business,trading and storage business, public catering services, environment-friendly production output.Residents enjoyed exclusive customs and tax regimes. In particular, they were exempt from
customs duties for goods and items imported  in the FEZ for final consumption; goods
originated from FEZ and exported to the custom s territory of the Moldova; goods produced in
the FEZ and exported outside the territory of the Moldova. The income tax had been set up toWT/ACC/SPEC/MOL/4/Rev.1
Page 75
20 per cent (elsewhere in the republic it was 32 per cent). Goods and services manufactured and
rented in the FEZ were exempt form VAT. Residents who invested US$250,000 and more in thezone's development were relieved from paying income tax for five years. The residents had the rightsaccorded by legislation for ten years. There were no requirements that the output pr oduced in the zones
is exported, and there were no domestic content requ irements. Benefits were not conditioned on export
performance or import substitution requirements.
- Government procurement
142. The representative of Moldova said that the Law on Government Procurement No. 1166-XII
had been adopted on 30 April 1997. The Moldovan Government did not collect statistics ongovernment procurement. There were three domains  of public procurement: procurement in connection
with loans from international aid agencies such  as the World Bank, the European Bank for
Reconstruction and Development; procurement for s ecurity and defense purposes; and other government
procurement. There was no breakdown of the public  sector procurement market by product type
available. The estimated overall value of central government purchasing in 1996 had beenapproximately MDL 200 million.
143. The representative of Moldova stated that in  accordance with the Moldovan procurement law
(Article 5 of the Law on Government Procurement) the following institutions  were involved in the
procurement process: procuring entities, engaged in  the acquisition of goods, construction and services;
the Bureau for Project Assistance and Public Proc urement, renamed "National Agency for Government
Procurement" (NAPP). The NAPP was supervising a nd monitoring procuring entities in the conduct of
procurements and oversaw their compliance with th e provisions of the procurement law and other
legislative requirements such as regulations, rulings,  and orders of general application in this area.
Concerning advertising , the representative of Moldova said that a procuring entity had to solicit tenders
by publishing an invitation to tender or an invitati on for preliminary qualification in the Romanian and
Russian languages in the Public Procurement Bulletin (PPB) issued by the NAPP. In particular
situations, the invitation to tender also had to be published in the English language in mass media of
wide international circulation (Article 18 and Ar ticle 26 of the Law on Government Procurement). The
invitation to tender contained, inter alia , specifications of the goods, construction and services to be
supplied in terms of nature, quantity, place and time, the criteria and procedures to be used forevaluating the qualifications of suppliers, place and deadline for the submission of tenders, means andplace of obtaining the solicitation documents. The pr ocuring entity could engage in pre-qualification
proceedings with a view towards id entifying qualified suppliers prior to the submission of tenders. Only
suppliers that had been pre-qualified were entitled to  participate further in the procurement proceedings.WT/ACC/SPEC/MOL/4/Rev.1
Page 76
Further details were included in Article 7 of the Law on Government Procurement. A procuring entity
should engage in procurement of goods or c onstruction by means of open competitive tendering
proceedings as the preferred method of procurement.  Under special conditions, a procuring entity could
use the following methods of pr ocurement (Article 19 of the Law on Government Procurement):
two-stage tendering (Article 20 of the Law on Government Procurement); restricted tendering
(Article 21 of the Law on Government Procurement; sp ecialized restricted tendering (Article 22 of the
Law on Government Procurement); request for quo tations (Article 23 of the Law on Government
Procurement); and single-source procurement (Artic le 24 of the Law on Government Procurement).
144. In response to questions, the representative of Moldova said that once a procuring entity had
been approved by the NAPP, it acquired the right to  grant a margin of preference for the benefit of
tenders for construction by domestic contractors or for the benefit of tenders for domestically producedgoods. The margin of preference could not exceed 10 per cent (Article 38 paragraph 6 of the Law onGovernment Procurement). A system  of electronic tendering for public procurement had not been set up
in Moldova yet, but the establishment of a databa se system for availability of data/information on
tendering was foreseen. The procuring entity had no right to establish any criterion, requirement orprocedure with respect to the qualifications of supplie rs that discriminated against or among suppliers or
against categories thereof on the basis of nationality  (Article 6 the Law on Government Procurement).
145. Some members of the Working Party asked whether Moldova would accept the WTO
Government Procurement at the time of accession. The representative of Moldova confirmed that
Moldova would begin negotiations on the accep tance of the WTO Agreement on Government
Procurement after accession.
146. The representative of Moldova confirmed that upon accession to the WTO, Moldova would
become an observer to the Agreement on Government Procurement and would initiate negotiationsfor membership in the Agreement by tabling an entity offer immediately after accession . He also
confirmed that, if the results of the negotiation s were satisfactory to the interests of Moldova
and the other members of the Agreement, Moldova would complete negotiations for
membership in the Agreem ent by 31 December 2000.  The Working Party took note of those
commitments.
- Government-mandated counter-trade and barter
147. The representative of Moldova stated that in order to obtain from its trading partners, whose
economies were in transition, essential products such as energy, metals, machinery and spare parts, theWT/ACC/SPEC/MOL/4/Rev.1
Page 77
Moldovan Government occasionally entered into ne gotiations with these partners to pay for such
supplies with agricultural products purchased by th e Moldovan Government on the domestic market.
- Trade in civil aircraft
148. Some members of the Working Party asked whether Moldova would accept the WTO
Agreement on Trade in Civil Aircraft at the time of accession.
149. The representative of Moldova confirmed that Moldova would become a signatory to
Agreement on Trade in Civil Aircraft as soon as possible after accession to the WTO. The Working
Party took note of this commitment.
- Transit
150. The representative of Moldova stated, at present, that transit of commodities through the
territory of Moldova was free from the levy of fees and customs duties. In relation to VAT and excisetax, Moldova granted freedom of transit through its te rritory to the trade of WTO members as prescribed
by Article V of the GATT. The only charges le vied were those for transportation and those
commensurate with administrative expenses or w ith the cost of services rendered. He added that
Moldova was party to a multilateral agreement on tr ansit trade within the framework of the CIS.
Moldova had also signed transit agreements with Romania, Ukraine, Belarus and Russia.
- Policies Affecting trade in Agricultural Products
- Imports – description of the types of border protection maintained
151. The representative of Moldova said that agricultural products could be imported freely into
Moldova without quantitative restrictions. Duties a pplicable to individual products were to be found in
Moldova's customs tariff.
152. Some members of the Working Party asked whether the customs clearance procedures followed
by the Republic of Moldova reduced to a minimum dela ys in clearing import shipments of dairy or other
perishable agricultural products. In response, the repr esentative of Moldova stated that the waiting time
for imports from all countries at the border with Romania and Ukraine, on average, did not exceed 30
minutes. The actual customs clearance took place at the regional customs office of the place where the
importing firm was located. The decentralized nature  of this system had kept the time required for
customs clearance to a minimum.WT/ACC/SPEC/MOL/4/Rev.1
Page 78
- Exports
153. The representative of Moldova said that Moldova granted no subsidies to exports of agricultural
products. Moldova did not rest rict or prohibit the export  of agricultural products.
- Internal policies – i.e. description of and the budgetary expenditure and any revenue
foregone involved in each of the domestic support measures in place
154. In response to requests for information concerni ng the grants provided to livestock producers,
the representative of Moldova explained that  although the whole amount of MDL 7.8 million was
entered in Domestic Support Table DS:7 as a gran t, the support had, in fact, a grant component of
MDL 6.3 million and a loan component of MDL 1.5 milli on, as stated in DS:6. The beneficiaries were
State-owned farms and the di stribution was as follows:
Component Amount in thousand MDL
Purchase of high quality breeding animals 856
Long-term stock-breeding programmes 50
Maintaining the livestock genetic fund 634
Purchase of protein-rich forage 2,500
Advanced technologies 950
Animal exhibitions and auctions 320
Animal registers and books 78
Credits for forage 1,500
Other 912
Total 7,800
155. In response to requests for information concerning the grain subsidy included under wheat in
Domestic Support Table 7, the representative of Moldova stated support covered wheat and did not
confer any financial benefit to produ cers of a basic agricultural products. The subsidy benefits grain
processors (millers) and subsequent production stages.  Moldova provided no product-specific
market price support on any agricultural products.
156. Some members of the Working Party asked whether Moldova would be making commitments
comparable to those of developed Members in its accession to the WTO. In response, the representative
of Moldova said that even though Moldova considered  itself at the level of development of developing
countries, as discussed in the Working Party, fo r the purposes of accession to the WTO Moldova would
need additional flexibility only as regards Articles 6 and 15.2 of the Agreement on Agriculture and
related matters.
157. The draft schedule has been circulated in document WT/ACC/SPEC/MOL/1/Rev.5.WT/ACC/SPEC/MOL/4/Rev.1
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158. Some members of the Working Party requested information on Moldova's support programmes
such as viticulture improvements, livestock improv ements and "improvement of fruit tree growing". In
response, the representative of Moldova explained th at as a result of the questioning of its level of
development, Moldova had entered these pr ogrammes as non-exempt direct payments.
- Textiles regime
159. The representative of Moldova said that there was no special regime for textiles and clothing.
Moldova permits duty-free import of raw materials for textile and clothing products from the
European Union, provided the finished products are subsequently exported to the European Union
(inward processing). This regime applied to all countries.
VI. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
a) Intellectual property policy
160. The representative of Moldova said that since th e declaration of its independence, Moldova has
followed a policy of developing mutually advantageous relations with all countries of the world. Thenational legislation had been transformed to adjust to  international standards. The policy of transition to
a market economy had largely determined the approach to intellectual property and the extension of the
rights of its owners Intellectual property rights had become rights of legal persons and individuals. The
main directions of the policy had been: (i) enact ment of special national legislation on individual
intellectual property rights; (ii) establishment of pub lic authorities responsible for intellectual property
rights; (iii) membership in intern ational conventions and treaties on trade-related intellectual property
rights. The Government in 1993 had implemented the protection of industrial property, the rights of
owners of titles of protection and inventors on the basis of the Provisional Regulation No. 456 “On the
Protection of Industrial Property in the Republic of Moldova” adopted. The titles of protection in
Moldova are the following: patents for inventions; certificates of registration of industrial designs,
trademarks and service marks, appellations of origin of goods and utility models. The Official Bulletin
of Industrial Property (BOPI) provides information on inventions, designs and trademarks claimed and
registered in Moldova, as well as on legal acts and regulations related to intellectual property.
161. The representative of Moldova presented to th e Working Group with further information on the
TRIPS regime in document WT/ACC/MOL/18.WT/ACC/SPEC/MOL/4/Rev.1
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162. The representative of Moldova stated that the Moldovan Parliament had ratified the following
IPR agreements: Strasbourg Agreement Concerning th e International Patent Classification; Locarno
Agreement on the Establishing of an Internati onal Classification for Industrial Designs; Vienna
Agreement Establishing an International Classification of the Figurative Elements of Marks; NiceAgreement on the International Classification of Goods and Services for the Purposes of theRegistration of Marks.
163. Some members of the Working Group said that the TRIPS Agreement was a fundamental
component of the obligations undertaken by all WTO Members. These members expected Moldova to
implement the WTO TRIPS Agreement fully as of the date of accession, without recourse to anytransitional arrangements. The representative of Mol dova said that Moldova was prepared to implement
the TRIPS Agreement from the date of accession. A detailed programme of specific legislation requiredto be implemented would be shortly presented to  the Government for approval. This programme
foresaw the enactment of the necessary legislation no later than January 2000. As a result of the judicial
system reforms, all the conditions for implementa tion of the TRIPS provisions had been created. In
response to requests the representative of Moldova submitted in tabular form a Checklist of IllustrativeTRIPS Requirements and Compliance by the Re public of Moldova in document WT/ACC/MOL/21.
b) Responsible agencies for policy formulation and implementation
164. The representative of Moldova stated that the of  policy and strategy in the field of intellectual
property protection are elabor ated by the State Agency on Industrial Property Protection (AGEPI),
established on May 25, 1992 by the Decree of the President of Moldova No. 120, and by the State
Agency on Copyright and Neighboring Rights estab lished on November 25, 1991 by Decree of the
President of Moldova.
c) Membership of international intellectual property conventions
165. The representative of Moldova stated that the Republic of Moldova is party to the following
conventions and treaties:
- Convention Establishing the World Inte llectual Property Organization (WIPO);
- Paris Convention for the Protection of Industrial Property;
- Patent Cooperation Treaty (PCT);
- Madrid Agreement concerning International Registration of Marks;
- Hague Agreement concerning the International Deposit of Industrial Designs;
- Budapest Treaty on the Internatio nal Recognition of the Deposit of
Microorganisms for the Purposes of Patent Procedure;WT/ACC/SPEC/MOL/4/Rev.1
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- Nairobi Treaty on the Protec tion of the Olympic Symbol;
- Trademark Law Treaty;
- Eurasian Patent Convention;
- UPOV;
- Lisbon Agreement of the Protection of  Appellations of Origin and their
International registration (1958);
- Protocol relating to the Madrid Ag reement Concerning th e International
Registration of Marks (1989).
166. In 1993 the Republic of Moldova became member of the Standing Committee on Information
Technologies (SCIT) and Permanent Committee on Intellectual Property Cooperation for Development(PCIPD). The representatives of the State Agency on Industrial Property Protection actively participate
in the works of WIPO Standing Committee on the Law of Patents and Sta nding Committee on the Law
of Trademarks, Industrial Designs and Geographical  Indications. The Republic of Moldova is member
of the WIPO Coordination Committee. In addition, AGEPI concluded cooperation agreements with 35
Patent Offices throughout the world.
167. As to the future strategic steps, the Republic  of Moldova intends to become party to the
following international Agreements:
- Madrid Agreement for the Repression of Fa lse or Deceptive Indications of Sources
on Goods;
- Lisbon Agreement for the Protection of Appell ations of Origin and their International
Registration (1958).
- New Act of the Hague Agreement concernin g international registration of designs
(Geneva, 1999)
- Patent Law Treaty
d) Application of national and MFN treatment for foreign nationals
- The principle of national treatment is appl ied in respect to intellectual property.
e) Fees and taxes
168. Fees for patents for inventions, utility models, industrial designs, trademarks, and appellations
of origin of goods are liable to payment at the State Agency on I ndustrial Property Protection of the
Republic of Moldova. General terms and am ounts are regulated by the Go vernmental Decision No. 774
of 13 August 1997, the supplementary ones being s ubject to order No. 80 of August 28, 1997 of theWT/ACC/SPEC/MOL/4/Rev.1
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General Director of the  AGEPI. The schedules of fees for the intellectual property rights are listed in
Annex I. of WT/ACC/MOL/4.
2. Substantive Standards of Protection, including Procedures for the Acquisition and
Maintenance of Intellectual Property Rights
- Copyright and related rights, including rights of performers, producers of phonograms
and broadcasting organizations
169. The representative of Moldova said that the Law on Copyright and Neighboring Rights No.
293-XII of November 23, 1994 governs copyright and neighboring rights, which entered into force on
March 1, 1995. This Law provides protection for intellect ual property rights related to literary, artistic
and scientific works, expressed in a form that a llows to be reproduced irrespectively of the form,
destination and value of each work, as well as the procedure of its reproduction. As creator, the authorenjoys an exclusive copyright for his work. The copyright also includes the personal and economicrights of the author. The personal rights entitle the au thor to the following: (i) the right to paternity; (ii)
the right to his name; (iii) the right to the work's integrity; (iv) the righ t to advertise his work or to allow
(or to prohibit) its publication, as well its withdr awal. The economic rights give the holder of the
copyright the exclusive right to the use of the work  in any form and by any procedure. The exclusive
right of use of the work is defined as the right of th e author or other copyright holder to realize, to allow
or to prohibit the following activities: reproduction of  the work, distribution, public demonstration of the
work, translation. Copyright owners are entitled to prev ent the rental of a copy of a work even after that
particular copy has been sold and that sound reco rding producers have a similar right to prevent the
rental of copies of the sound recordings, even after those copies have been sold.
170. Audio-visual works, computer software, databases, phonograms and musical works and
compilations of data are protected by the same Law (Articles 6 and 10). The Law entitles the holder of a
copyright to the exclusive right to exploit his work  in any form and by any means. The copyright on
audio-visual works is conferred to: writer of scenar io; director/producer; composer as the author of the
music; cameraman; designer. The author of a prio ry created work, adapted or included without any
changes within another audio-visual work, as part of  this work, is considered co-author of the latter.
171. The producer of a phonogram has the exclusive right to use it in any form, including the right to
obtain remuneration for its use, the right on reproduc tion, distribution of copies , modification or change,
importation of copies of the phonogram with the purpos e of broadcasting. Copyright may be transferred
by means of a contract (Article 28).  The performe r of a phonogram has the exclusive right to allow or to
prohibit the following activities: recording of an unrecorded performance, reproduction, transmission ofWT/ACC/SPEC/MOL/4/Rev.1
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the performance by radio-electronic means, cable or other means of communication, rental of a
published phonogram, as well as the right to defend the performance against any disfigurement orcontortion or undermining of the reputation of the pe rformer, and to transfer the right by means of a
contract to another person (Article 27).  Broadcas ting organizations have the exclusive right to use
phonograms in any form (Article 29). Foreign nationals enjoy national treatment under this Law.
172. The Law of the Republic of Moldova on Copy right and Neighboring Rights No. 293-XII of
November 1994 is compliant with the Provisions of  the Articles 1 to 21 of the Bern Convention (1971)
and the Appendix thereto as required by Article 9 of the TRIPS Agreement.
173. As to restrictions on the exclusive rights of c opyright owners or owners of neighboring rights,
the legislation of the Republic of Moldova contains detailed regulations on restrictions on the exclusive
rights of copyright owners or owners of neighborin g rights related to: reproduction of works for personal
use; reprographic reproduction by libraries; free use of works; reproduction of computer programmes
and computer databases (Chapter III, Articles 20-23). The Law on Copyright and Neighboring Rights
provides protection of copyright and neighboring ri ghts for a term of 50 years. Under Articles 17(9)
and 33 of this Law, author’s moral rights are protected without time limits.
174. Under Article 8(4) of the Copyright Law, the certif icate of registration constitutes, in the event
of a dispute, a presumption of au thorship for the court in the absence of proof to the contrary.
175. Under the legislation of the Republic of Moldova,  copyright protection shall not be restored for
works that were in the public domain in Moldova prior to 31 December 1994. For works the period ofprotection of which was due to expire on 31 December 1994, the following adjustments were made: ifthe term of protection of the work of a foreign aut hor used in the Republic of  Moldova, is longer, under
the laws of the country of the author, than the te rm under the present Article, the term of protection
stipulated by this Law shall apply; if it is shorter, the term of protection stipulated by the laws of the
country of the author shall apply (Article 17(12)).
176. On January 28, 1998, the Republic of Moldova ratified WIPO Copyright Treaty and WIPO
Performances and Phonograms Treaty adopted on December 20, 1996 by the Diplomatic Conference.
By the Decision of the Government of the Repub lic of Moldova No. 524 of July 24, 1995, a four-year
(1995-1998) period was established for the transition from the administrative system to a system ofcollective management of patrimonial rights of authors and owners of neighboring rights. Accordingto this Decision, an Authors and Neighboring Rights Owners was set up with the State Agency onCopyrights of the Republic of Moldova which establishes the level of author remuneration, adoptssamples for contracts and licenses regarding turning account of works, interpretations, phonogramsWT/ACC/SPEC/MOL/4/Rev.1
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etc., establishes the level of commission remuneration for collection, distribution and paying off the
author remuneration services and controls the activity of Agency for paying off the authorremuneration. Organizational measures were undertaken for setting up a non-governmentalorganization to administer the patrimonial rights of the authors and neighboring rights owners on the
basis of collective principles.
- Trademarks, including service marks
177. Under the Law on Trademarks and Appellations of  Origin of Goods No. 588-XIII of September
22, 1995, a trademark is defined as a sign which serv es to distinguish the products or services of
enterprise, legal persons or individuals from the simila r products or services of other enterprises, legal or
natural persons. There are two kinds of trademarks: collective marks and individual marks. A trademarkmay be: a) verbal, i.e. consisting of words, including  forenames and surnames, of letters or of figures; b)
figurative mark, in two or three dimensions; c) mixed mark, consisting of verbal and figurativeelements. The trademark may be registered in black a nd white or in color. The certificate of registration
is the title of protection for trademarks in the Republic of Moldova. The registration procedure is
compliant with the provisions of international c onventions. An application for the registration of a
trademark and the enclosures shall be filed with th e State Agency of the Republic of Moldova. Actual
use of a trademark shall not be a condition for filing  an application for registration or to maintain a
registration. In conformity with Article 2(1)  of the Law no.588/1995, the de finition of trademark
includes product marks as well as service marks. According to the Law No. 588/1995, the enclosures of
the application may be filed in any language ot her than the national, under the condition that a
translation in the national language shall be file d within two months following the filing date. The
registration of a trademark shall subsist for 10 years as from the filing date of the application. The filingdate of an application shall be considered the date  on which the application and the bill of payment have
been filed with the AGEPI. Any person may oppose the registration within 3 months following the date
of publication of the notice concerning the application. Foreign legal and natural persons enjoy the same
treatment as legal and natural persons resident in  the Republic of Moldova, under the provisions of
international conventions and treaties to which the Republic of Moldova is party.
 
178. According to the legislation of the Republic of Moldova, individual colors as such as are not
recognized as trademarks, but a color or a combination of colors of a word mark or a figurative mark are
protected as part of a trademark (Articles 4 and 5). A color as part of a trademark is deemed identical to
a color as part of another trademark if through a series of tests it was found similar to the point of
confusion.
179. According to Article 17 (1), any person may oppos e the registration of a trademark or of anWT/ACC/SPEC/MOL/4/Rev.1
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appellation of origin by the Appeals Board of th e Agency on Industrial Pr operty Protection (AGEPI),
and where not satisfied by the decision of this A ppeals Board, before a higher judicial authority.
Cancellation of registration of a trademark may be required under Article 26 of the Law. Theregistration of a trademark may be cancelled at any tim e during its term of validity if it has been effected
in infringement of this Law. Any person may submit to the Appeals Board of the Agency a request for
cancellation of a registration, for which this Law does not prescribe any time limits.
- Geographical indications, including appellations of origin
180. Under the Law on Trademarks and Appellation of Origin of Goods of the Republic of Moldova,
an appellation of origin is defined as the designati ons - current or historical  - of a country, a region, a
locality used to designate a product whose natural pr oprieties derive essentially or exclusively from the
natural or human factors specific to that geographical  area. The appellation of origin may also be a word
derived from the name of a country or an administ rative or territorial-subdivision of such country. The
certificate of registration is the title of protection of appellations of origin in Moldova. The right to
receive titles of protection for the appellations of origin belongs to natural or legal persons conductingbusiness activities in the corresponding geographical area.  The application shall be filed in the national
language. All parties conducting business activities in connection with the product associated with the
appellation of origin shall apply separately for the ce rtificate. The registration of an appellation of origin
is valid for an unlimited term. An application for regi stration of an appellation of origin shall be filed
with the State Agency on Industrial Propert y Protection of the Republic of Moldova.
181. The use of a registered geographical indicati on is prohibited for any person who is not the
holder of the registration certificate. The use of products  of the same type, of similar designation that are
likely to mislead consumers as to the place of origin  and special properties of the products shall also be
prohibited (Article 22 (2)), Law on Trademarks and A ppellations of Origin). Article 7 (2), (a) of this
Law stipulates grounds for refusal to register a trad emark or an appellation of origin in case they are
deceitful or liable to mislead the consumer. Th e legislation of the Republic of Moldova provides
additional protection for wines and spirits. However, special procedures for registering wines and spirits
are established by the Governmental  Decision No. 760 of 10 November 1995.
182. Under the legislation of the Republic of Moldova, geographical indications which are not
literally true as to the territory, region or locality in which the goods originate, and falsely representthat goods originate in another territory shall be excluded from registration under Article 7(2), (a) ofthe Law on Trademarks and Appellations of Origin of the Republic of Moldova.WT/ACC/SPEC/MOL/4/Rev.1
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183. Referring to the introduction of specific provisi ons for the protection of  geographical indications
for wines and spirits, compliant with Article 23 of  the TRIPS Agreement, the Law on Trademarks and
Appellations of Origin and the Governmental D ecision No. 760 of November 10, 1995 to be consistent
with Article 23 of the TRIPS Agreement. However,  the Law on Trademarks shall be provided with
special provisions on the prot ection of geographical indica tions for wines and spirits.
- Industrial designs
184. Under the Law on Protection of Industr ial Designs no.991 of 1996, the novel outward
appearance of an article with a utilitarian function ma y be registered as an industrial design. To register
an industrial design an application shall be file d with the AGEPI. Foreign residents, both legal and
natural persons, shall act through a patent attorney in  matters related to the protection of their industrial
design. The attorney's rights shall be confirmed by a power of attorney issued by the applicant. After
filing, an application is subject to formal ex amination; publication; substantive examination, if
requested. If no opposition has been filed against the deci sion to register the industrial design, or if any
opposition filed have been rejected, an industrial design shall be subject to registration and grant of thecertificate of registration. The registration of an industrial design may be effected either without
substantive examination, under applicant's responsibility, or after substantive examination.
185. Under the Law on the Protection of Industrial Desi gns, the title of protection of the industrial
design in the Republic of Moldova is the certificate of  registration. The certificate of registration entitles
the owner to the exclusive right to exploit the indust rial design on the territory of Moldova as well as to
the right to allow or to prohibit third parties to carry out without authorization the following activities:
manufacture, use, importation, exporta tion, offering for sale and any other form of marketing other
holding for that purpose of an article produced using the registered industrial design. Protection is valid
for five years from the date of the filing of applic ation with the AGEPI and may be renewed four times
for consecutive periods of five years, against paymen t of the prescribed fee in the fifth year of the
current period of validity.
186. The criteria for protection of an industrial de sign include the independent creation of an
industrial design as well as the condition of being ne w and original. In order to  be protected industrial
designs shall be different from known designs or co mbinations of known design features (Articles 4
and 6(1) of the Law on the Protecti on of Industrial Designs). Textile designs enjoy the same protection
as industrial designs i.e., they may be registered as a design or industrial model if they possess a newappearance and a utilitarian function.WT/ACC/SPEC/MOL/4/Rev.1
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- Patents
187. According to the Law on Patents for Inventions no. 461-XII of May 18, 1995, a patent for
invention may be granted for an invention which ma y concern a new product or process or the use of a
known product or process for new purposes. For the purpose of the Patent Law, "product" shall mean
equipment, substance, and microorga nisms. At present, in the Republic of Moldova new animal breeds
were protected under the Law on Breed Protection no. 412-XIV/1999.
4. The following shall not regarded as inventions:
- scientific theories and mathematical methods;
- conventional signs, timetables and rules ;
- methods for performing mental acts;
- organizational methods for doing business;
- algorithms and computer programmes .
- projects and plans for buildings and constructions and for territorial planning;
- projects of an aesthetic nature (designs);
- topographies of integrated circuits;
- plant or animal varieties.
- Patents shall not be issued for inventions contrary to public policy and morality.
The priority date of the inventions shall be de termined by the filing date of the application. An
application shall contain the following documents: (a) a request for the grant of a patent, including
identification of the inventor or inventors, of the a pplicant or applicants or of the person or persons on
whose behalf the patent is sought; (b) a description of the invention disclosing it in a manner sufficiently
clear and complete for it to be carried out; (c) one or more claims defining the subject matter of the
invention and entirely supported by the description; (d) drawing and other elements, where necessary to
understand the subject matter of the invention.
188. Applications shall be accompanied by: (a) an ab stract; (b) proof of payment of the prescribed
fee or of circumstances justifying exemption from the fee or a reduction in the fee; (c) an authorization,
if the application is filed by a professional repr esentative; (d) any document necessary to prove the
priority of the invention.
189. The application documents shall be filed in the national language. With the exception of the
request, the application documents may be filed in one of the following international languages ofcommunication: English, French, Germ an and Russian. In such case, a translation into the nationalWT/ACC/SPEC/MOL/4/Rev.1
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language shall be submitted to the Agency within  two months following the filing date of the
application. AGEPI is authorized to grant patents without substantive examination under the applicant’s
responsibility. Applicants have the possibility to re quest the substantive examination, provided that the
respective fees are paid during the validity of th e period of the patent. In Moldova the patent for
invention is valid for 20 years. The owner shall pay an  annual fee for maintenance of his patent in force
during all period of validity of the patent. The extent of the legal protection conferred by the patent shall
be determined by the terms of the claims. The descript ion and drawings shall serve solely to interpret the
claims.
190. A patent owner shall enjoy an exclusive right in the invention protected by the patent, including
the exploit the invention, insofar as such exploitation does not prejudice the rights of other patentowners, the right to dispose of the patent and the ri ght to prohibit others from exploiting the invention
protected by the patent without his authorization (A rticle 22(1), Law on Patents for Invention). Under
the legislation of the Republic of Moldova there ar e no conditions to compulsory working a patent. In
civil infringement proceedings involving process pa tents, TRIPS Article 32 provides that judicial
authorities have the authority to order the defendant  to prove that the process to obtain an identical
product is different from the patented process.
191. In the event of failure to work an invention or  to work sufficiently by the patent owner during
the three years that follow the date of grant of the patent, any person wishing to exploit the invention and
prepared to do so may, if the patent owner has refu sed to conclude with him a licensing contract, submit
to a court or arbitration tribunal a request for the grant of a non-exclusive compulsory licence. In the
interest of national security, the Government may authorize exploitation of an invention by another
person without the consent of the patent owner agains t payment to the latter of an appropriate monetary
compensation. In the event of disagreement as to the amount of the monetary compensation, the patentowner may institute legal proceedings (Article 33 (1), (4)). Under the legislation of the Republic of
Moldova, processes enjoy the same protection as products. Necessary amendments to the Laws in the
field of industrial property protection have been elaborated, in compliance with the provisions of Article
31 of the TRIPS Agreement to permit issuing of a compulsory licence in certain narrowly defined
circumstances. If such a licence is issued, the Agency is required to take steps to inform the patentholder on the decision concerning the grant of a non-exclusive compulsory licence; the Agency is alsorequired to enter the decision in the National Patent Register, notify the issuance of the licence in theOfficial Bulletin within 3 months following the date on which they have been entered in the NationalPatent Register. If the holder of a non-exclusive compulsory licence fails to use the licence within theyear following the grant of the licence, the non-exclusive compulsory licence may be cancelled.WT/ACC/SPEC/MOL/4/Rev.1
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192. The legislation of the Republic of Moldova doe s not contain any provisions corresponding to
Article 34 of TRIPS, however, certain amendments are being prepared to adjust the legislation prior its
accession to WTO. Article 23 paragraph 1(c) of the Law on Patents for Inventions from the Draft Lawfor amending various Laws are harmonized with the pr ovisions of Article 34 of the TRIPS, and namely:
“When assessing cases of infringement of the rights of  the owner, if the subject matter of a patent is a
process for obtaining a product, the judicial author ity shall require the defendant to prove that the
process to obtain an identical product is different fo rm the patented process; any identical product when
produced without the consent of the patent owner sh all, in the absence of proof to the contrary, be
deemed to have been obtained by the patented proce ss; if the product obtained by the patented process is
new or if there is a substantial likelihood that the identical product was made by the process and theowner of the patent has been unable through reasona ble efforts to determine the process actually used.”
- Plant variety protection
193. Law on Plant Varieties, which entered into fo rce on 28 November 1996, regulates the protection
of Plant Varieties in the Republic of Moldova. S ubsequently, the "Provisional Statute of Industrial
Property Protection in Mol dova" was abrogated. The Law provides special protection for plant varieties.
Protection is granted on the basis of certificates is sued by the State Commission for Variety Testing of
the Republic of Moldova, and the patent granted by  the State Agency on Indus trial Property Protection.
The term of protection is 25 years for trees, fruit trees and – grapevine and 20 years for plant varietiesand other species, with the possible extension for another ten years. The Law provides the exclusive
rights of exploitation to the patentee which are listed in Article 13 (Law on Plant Variety Protection).Moldova has also become a member of UPOV.
- Topographies of integrated circuits
194. According to the Draft Law for amending vari ous Laws, protection is granted only for genuine
topographies and not for ideas, processes, system s, technology or coded information which may be
embodied in topographies. Registration is made wit hout substantive examination. The certificate is valid
for ten years.
195. The representative of Moldova said that presently there were no provisions governing
topographies of integrated circuits . A Draft Law on Topographies of In tegrated Circuits, which complies
with relevant international agreements had been elaborated and would be submitted to the Working
Party in due course.WT/ACC/SPEC/MOL/4/Rev.1
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- Requirements on undisclosed information, including trade secrets and test data
196. Trade secrets are protected under the Law on the Protection of the Trade Secret, No. 171
adopted by Parliament on June 6 1994. Any information is  considered a commercial secret if: (i) it has
real or potential value to the economic agent; (ii) acce ss to it is restricted; (iii) is marked, by stamp or
otherwise as confidential; (iv) is not covered by the provisions of copyright or patents. Special
provisions are applied for state secrets and matters of national interest. Trade secrets are protected as
long as they meet the above - mentioned criteria. This Law contains no limitations on the protection and
no compulsory licensing provisions.
197. Although the Law on Trade Secret also protects unrecorded undisclosed information, Moldovan
authorities responsible for licensing intellectual property shall generally require that confidential
information submitted in connection with the applica tion for licenses, registration certificates, etc., is
recorded and marked for purposes of clarity.
198. Marketing of pharmaceuticals and agricultural ch emical products, which utilize new chemical
entities without registration of intellectual property rights, shall only be subject to approval by the
Ministry of Health or the Ministry of Agriculture , respectively. Moldovan legislation does not require
the submission of undisclosed test or other data as a condition of approving the marketing of products in
question, but if the importer requires protection of undis closed information, the Ministry of Health or the
Ministry of Agriculture provide such  protection according to the legisla tion in force. In order to import
and sell agricultural chemicals in Moldova, an im porter has to obtain an import licence and a hygiene or
conformity certificate. For the importation of pharm aceuticals, Moldovan legislation requires an import
licence. In addition, pharmaceuticals to be imported shall bead to be registered. The NationalPharmaceutical Institute of the Ministry of Health ha s issued an information leaflet for foreign producers
describing in detail the registration procedures.
- Other categories of intellectual property
199. The Republic of Moldova recognizes utility models if they concern the constructive execution
of means of production and of consum er goods or their component part s and if they are novel and are
susceptible of industrial application. The certificate of  registration is the title of protection of a utility
model. The utility model application shall be file d with the AGEPI and it shall contain the following
documents: a request with information concerning th e applicant (inventor), or his successor in title;
description; claims; drawing and graphics, if necessa ry. These documents ensure the priority rights of
the application from the date of filin g of the application with the AGEPI.WT/ACC/SPEC/MOL/4/Rev.1
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200. In case of refusal, a patent application may be converted into a utility model application with an
initial priority date. In this case, the applicant sh all, after 3 months from the decision of refusal but not
later than 4 years from the filing date  of the application, file a request for utility model registration for
the same object with the AGEPI with the priority re quest of the initial filing date. The transformation of
a utility model application into a patent applicati on for the invention is possible up to the acceptation
prior to the decision for utility model registration. In th is case the priority date shall be the date of the
initial deposit. The certificate is valid  for five years from the filing date.
3. Measures to Control Abuse of Intellectual Property Rights
201. Enforcement proceedings are stipulated under existing Moldovan laws and allow effective
action against infringement on intellectual property rights. The initiative for action against infringementis up to the holder of the property right. The Custom s Control Service is empowered to hold back copies
of works and phonograms introduced or taken out wit hout licence. Provisions for special measures by
customs concerning the infringement of right of intelle ctual property rights are in the elaboration stage.
4. Enforcement
- Civil judicial procedures and remedies
202. Legislation in force provides the possibility to pursue infringements on intellectual property
rights and regulates the adduction of proof. The principles of competition and guilt are applied. The
Republic of Moldova has a Court system in which the competence of tribunals depends on the type of
dispute to be considered. Contesting parties have th e possibility to solve disputes by recourse to the
services of arbiters, one is permanently available with the AGEPI.
203. While civil legislation of the Republic of Mo ldova contains general provisions on property
rights, specific provisions relating to the protection of intellectual property rights are contained in the
laws in the field of intellectual property rights.
204. Intellectual Property Rights litigation and disput es are solved in the Republic of Moldova,
depending on particular cases, in the following judici al authorities: (i) ordinary courts, against whose
judgments appeals could be submitted to the Court of Appeals and ultimately to the Supreme Court of
the Republic of Moldova; (ii) Economic Court, where appeals may be submitted to the EconomicAppeals Court and ultimately to the Supreme Court of Justice of the Republic of Moldova.
205. When a right-holder considers that his intellectual property rights have been injured he may
initiate a civil, penal or administrative suit in the court. In cases of fraud or similar cases the publicWT/ACC/SPEC/MOL/4/Rev.1
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prosecutor may also initiate a separate case under the Penal Code of Moldova. The same rules on
evidence governing civil litigation in Moldova appl y to intellectual property right cases. The person
found guilty of an infringement may be ordered to pay a fine, damages or compensation. Eventually, theinjured may also request that the goods or the equipment used to produce the goods concerned be
destroyed or rendered incapable of the use which in fringed his rights (see Article 25, Trademark Law).
206. At the request of the injured party, the equipmen t and material used unlawfully to reproduce and
affix the trademark or appellation of origin concer ned shall be prohibited from use with that purpose.
Stocks of infringing signs reproducing the trademark or appellation of origin shall be destroyed and
trademarks or appellations unlawfully affixed to products shall be removed, even if that led to thedestruction of the products. In accordance with Article 25 (2) of the Law on Trademarks andAppellations of Origin, if the simple removal of th e mark does not exclude the possibility of misleading
the consumers, the products shall be destroyed. For c opyright piracy such measures include the seizure
of infringing copies of works or phonograms or the materials and the equipment used for their
manufacture and reproduction. Article 51(3) of the Code on Administrative Contravention providesfines of 10-75 times the minimum salary and confiscation of goods illegally acquired. In addition,Article 38(8) of the Copyright Law provides for confiscation of the goods involved. The present
legislation establishes measures of criminal responsibility for the international infringement of
copyrights and related rights, which caused considerable material damages. The judicial authorities, atthe request of the right holders will undertake measures immediately after customs clearance of suchgoods according to Article 51 of the Administrative Contravention Code and Article 141 of theCriminal Code.
- Provisional measures
207. According to present legislation, respectively Chapter 13, Articles 135-142 of the Civil
Procedure Code, the judicial authority may undertake measures to issue an injunction if theparticipants at the dispute request so. The issue of an injunction is permitted at any stage of the
process. The infringement of rights is sanctioned with a penalty of ten to twenty five minimum
salaries. The plaintiff has the right to ask the redress of damages caused by the to issue the injunction..Appeals may be launched regarding all the resolu tions related to the issue of the injunction. In
conformity with Article 142, the redress of damage s caused by the issue of the issuance of the
injunction is permitted.
208. Provisional measures are obtained by written application from the injured party or the public
prosecutor to the court or the arbitration body reque sting such measures. Provisional measures include:
(i) order to the infringing party to stop the manuf acture, reproduction, sale, rental, import, etc. ofWT/ACC/SPEC/MOL/4/Rev.1
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infringing objects until the court or the arbitration body has decided the case; (ii) seizure of infringing
objects; (iii) seizure of materials and equipment used  to produce the infringing objects; (iv) seizure of
accounts and other documentation that may be used as evidence in the inquiry.
- Any administrative procedures and remedies
209. Article 51(3) of the Code on Administrative  Contravention provides for fines of 10-75
minimum salaries and confiscation of goods in cases  of violation of an exclusive industrial right.
Article 152(2) of the same Code provides fine of  15 to 25 minimum salaries and confiscation of goods
in cases of false utilization of trademarks.
- Any special border measures
210. Adoption of appropriate standards is foreseen concerning the procedures allowing the right
holder to request the competent customs authorities to withhold the release into circulation of materials,
which infringe the intellectual property rights.
211. In response to requests for more information, the representative of Moldova stated that at the
present time no indication of the time frame for adoption of provisions on border measures may be
made. A draft law on border enforcement measures has been submitted to Parliament in the form of anamendment of the Customs Code. Presently, a new Cu stoms Code is being drawn up . At the moment of
its adoption, the aforementioned Govern mental Decision shall be abrogated.
- Criminal procedures
212. Articles 34 and 35 of the Law on Patents for Inventi on define the acts that are subject to Penal
and Civil Code in the form of imprisonment of up to two years (Article 34) with an alternative
punishment in the form of a penalty, or the penalty only (Article 35). They also prescribe compensation
for damages caused to the right holder for lost profit and for the liquidation of the goods or transfer of
them to the patent owner. Other measures are prov ided by the Law on the Protection of Consumer Right
no. 1453 of May 25, 1993 as well as by the following Articles of the Penal Code:
 141  infringement of inventor's rights;
 158 unlawful utilization of trademarks;
 122  misappropriation of the ow ner's property by swindle;
 220  acquisition or sale of property obtained by crime;WT/ACC/SPEC/MOL/4/Rev.1
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 200 obstruction or damaging of posters, public declarations, notifications, advertisements
of the Code concerning ad ministrative Contravention.
213. Some members of the Working Group asked for information on the criminal procedures and
penalties applicable to the unlawful utilization of tr ademarks, as provided by Article 158 of the Criminal
Code. In response, the representative of Moldova said that the procedures in these cases are the same as
for ordinary criminal offenses.
214. Under Article 38(12) of the Copyright Law, a person committing an intentional infringement of
a copyright or neighboring rights for gain and having caused considerable prejudice to the holder of the
right is liable to a term of imprisonment of one to three years or/and to a fine of 100 - 1000 times theminimum salary.
215. The representative of Moldova stated th at Moldova would comply with all the
provisions of the Agreement on Trade-Related Aspects of Intellectual Property Rights from thedate of accession to the WTO without recourse to any transitional period. The Working Party
took note of this commitment.
VII. POLICIES AFFECTING TRADE IN SERVICES
216. The Government of Moldova provided the de scription of the service regime in the
Memorandum on the Foreign Trade circulated in document WT/ACC/MOL/2. Moldova submitted theinitial offer on services in do cument WT/ACC/SPE C/MOL/2/Rev.2.
217. In response to requests for information, the re presentative of Moldova said that only limited
data were available on Moldova's services sector a nd its trade in services. Many services had remained
largely unregulated, particularly in relation to an y distinction between domestic and foreign supply. He
said that the new Law No. 332 of 26 March 1999 “On Certain Types of Activities” authorized thefollowing bodies specified in the paragraph [49] to issue the licenses for engaging in certain types of
activities. These licenses were issued only for engaging  in the activities listed and did not establish any
limitations on the quantities of products.
218. He said that more generally Moldovan laws and regulations did not, for the most part,
distinguish between trade in goods and services. The banking sector was open to foreign banks, whichwere allowed to set up subsidiaries, branches or representative offices. Every bank, domestic orWT/ACC/SPEC/MOL/4/Rev.1
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foreign-owned, which was licensed in Moldova was allo wed to engage in financial leasing (Article 26,
Law on Financial Institutions No. 550-XIII of July 21 1995).
219. In response to requests for information, the representative of Moldova explained that although
initially, the open competition for the supply of insu rance services was permitted, the amendment to the
Law “On Insurance” of 20 June 1996, stipulated that foreign insurance companies were allowed tooperate in Moldova only as a joint venture with Mo ldovan partners. The foreign share in such joint
venture  is not limited . Every company supplying insurance serv ices had to obtain a licence issued by
the Ministry of Finance. The detailed rules go verning the licensing requirements for insurance
companies were contained in the Regulation "On th e Issue of Licenses for Insurance Services" from
17 November 1995.
220. The representative of Moldova stated that the Law "On Financial Institutions” has defined the
banking system of Moldova as including the Nati onal Bank of Moldova, commercial banks and other
credit institutions. The notion of credit institutions  covers legal persons and individuals that were
involved in banking transactions. In 1991 a two-tier banking system with the National Bank of Moldova
serving as the central bank. The activity of the Na tional Bank had been regulated by the Law "On the
National Bank" No. 599-XII of June 11, 1991 (with amendments) and had been controlled by
Parliament. Commercial banks dul y licensed by the National Bank could open branches and regional
offices throughout Moldova. The banking sector was open to foreign banks, which were allowed to set
up subsidiaries, branches or representative offices. In banking joint ventures, the foreign partner had tobe a bank, which contributed its capital in foreign currency.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
221. The representative of the Republic of Moldova stated that Moldova had concluded a number of
bilateral and multilateral agreements, which provide the legal framework for the development of trade
and economic relations between Moldova and its partners. These agreements aimed at promoting,
facilitating and developing commercial exchanges and economic cooperation, were based on theprinciples of equality and reciprocal advantage agre ements and related to foreign trade in goods and/or
services.
222. In response to requests for information, the repr esentative of Moldova said that all Members
States of the European Union had not yet ratified  the Agreement of Partnership and Cooperation withWT/ACC/SPEC/MOL/4/Rev.1
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the European Union. The interim agreement did not contain any provisions with restrict Moldova's
ability regarding market access and national treatmen t for goods and services. Furthermore, under the
Textiles and Clothing Agreement with the EU, Moldova textile and clothing products could enter theEuropean Union (EU) mark et without quota limitations.  The Agreement also provided the European
Communities with non-discriminatory treatment in th e application of quantitative restrictions, the
granting of licenses and the allocation of currency needed to pay for imports. The representative of
Moldova confirmed, that this non-discriminatory tr eatment was also available to other WTO Members
on an m.f.n. basis (Government Decision No. 689 of 8 November 1993, amended by Government
Decision No. 421 of 20 June 1995).
223. The representative of Moldova informed the memb ers of the Working Party that the preferential
access for raw materials, including bottles and marked  packages, in connection with inward and outward
processing had been extended to all countries. The detailed regulations governing the import of rawmaterials in connection with inward and outward proc essing were set out in Annex 4 of the Government
Decision No. 777 of 1997.
224. Some members of the Working Party recalled Article XXIV of the GATT 1994 permitted
exceptions to Article I in the case of economic inte gration agreements provided that the conditions of
Article XXIV and the respective Understanding were  met. The members of the Working Party asked
Moldova to ensure that a framework agreement towa rds the creation of a custom union with several CIS
countries would be consistent with the WTO Agreem ent. In response, the representative of Moldova
stated that the Government of Moldova supporte d economic integration within the CIS. It was
Moldova's intention to ensure that the customs union and the steps leading to it would be in conformity
with the provisions of Article XXIV of the GATT 1994. Moldova would provide information
concerning all its agreements in the format used by the WTO Committee on Regional TradeAgreements.
225. Some members of the Working Party requested information on the scope of the duty free
treatment accorded in each agreement; exceptions to the elimination of tariffs; and any special
provisions concerning trade in services, investme nt, or movement of persons. In response the
representative of Moldova stated that the information on the free trade agreements signed with CIScountries and Romania was under preparation. Some members of the Working Party also requested aschedule describing the state of all preferential agreements presently held by Moldova, and adescription of their compatibility with the relevant provisions of the WTO Agreement. In response,the representative of Moldova stated that it would observe all WTO provisions, including those ofArticle XXIV of the GATT 1994 and Article V of the GATS in its trade agreements, and wouldWT/ACC/SPEC/MOL/4/Rev.1
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ensure the notification of the provisions of these agreements to the WTO. The requested detailed
information requested was under preparation.
226. The representative of Moldova said that Moldova would observe all WTO provisions,
including those of Article XXIV of the GATT 1994 and Article V of the GATS in the trade
agreements, and would ensure that the provisions  of these WTO agreements for notification,
consultation and other requirements concerning free trade areas and customs unions of which
Moldova was a member were met from the date of accession. He confirmed that Moldova, by
the end of 2000, would submit notifications a nd copies of its Free Trade Area and Customs
Union Agreements to the Committee on Regional Trade Agreements (CRTA).  He furtherconfirmed that these Agreements would be cons istent with the provisions of the WTO and
would, in any case, be notified to the CRTA during its examination of the same. The Working
Party took note of this commitment.
TRANSPARENCY- Publication of Information on Trade in goods and services
227. Some members of the Working Party requested the information concerning the special
information facility outlined in Article 21 of the Law “On Foreign Trade Activity”. In response the
representative of Moldova stated the special trade in formation facility outlined in Article 21 of the Law
“On Foreign Trade Activity” had been activated within the Ministry of Economy and Reforms.
228. The representative of Moldova said that Moldova would implement the transparency
requirements of Article X of the GATT 1994. All the relevant laws and regulations as described inArticle X of the GATT 1994 would be published promptly in "Monitorul Oficial al Republicii
Moldova" which was main publication for this purpose. Other decisions or regulations in specificareas were published in specialized newspapers or magazines. A general rule (according to theprovision 76 of the Constitution of the Republic of Moldova) applied that no law, decision orregulation was enacted and implemented without prior publication.
229. Some members of the Working Party requested information on how Moldova would be able
to fully apply the transparency requirements of the GATS, including GATS Article III. In response,the representative of Moldova stated that Go vernmental Decision No. 1104 of 28 November 1997
provided that all laws, governmental decisions a nd other legal documents would enter into force only
after their publication thus ensuring compliance with Article III (1) of GATS. The information centerthat would be established at the Ministry of Economy and Reforms could serve as a central GATSWT/ACC/SPEC/MOL/4/Rev.1
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inquiry point. Other similar inquiry points would be established in other governmental institutions,
such as the Ministry of Finance, National Bank, Ministry of Transport and Communications thusensuring compliance with paragraphs 3 and 4 of Article III of GATS. In addition the representative ofMoldova confirmed that it would undertake all necessary measures to ensure full application of othertransparency requirements of the GATS, including GATS Article III.
- Notification
230. The representative of Moldova stated that a schedule on notifications required by
Agreements constituting part of the WTO Agreement had been submitted in document
WT/ACC/SPEC/MOL/6 with information about deadlines of all notifications required uponaccession and immediately after accession. Any regulations subsequently enacted by Moldovawhich gave effect to the laws enacted to impl ement any Agreement constituting part of the
WTO Agreement would also conform to the requirements of that Agreement.  The Working Party
took note of this commitment.
- Conclusions
231. The Working Party took note of the explanations and statements of Moldova concerning its
foreign trade regime, as reflected in this repo rt. The Working Party took note of the commitments
given by Moldova in relation to certain specific matters, which are reproduced in paragraphs 27, 30,
45, 50, 58, 59, 61, 64, 70, 79, 87, 91, 94, 101, 106, 132, 133, 138, 146, 149, 215, 226 and 230 of thisReport. The Working Party took note that these commitments had been incorporated in paragraph 2 ofthe Protocol of Accession of Moldova to the WTO.
232. Having carried out the examination of the foreign trade regime of Moldova and in the
light of the explanations, commitments and conc essions made by the representative of Moldova,
the Working Party reached the co nclusion that Moldova be invited to accede to the Marrakech
Agreement Establishing the WTO under the provisions of Article XII. For this purpose, theWorking Party has prepared the draft Decision and Protocol of Accession reproduced in the
Appendix to this report, and takes note of Moldova's Schedule of Specific Commitments on
Services (document WT/ACC/MOL/…/Add.1) and its Schedule of Concessions andCommitments on Goods (document WT/ACC/MOL/…/Add.2) that are annexed to the Protocol.It is proposed that the General Council adopt th ese texts when it adopts the Report. When the
Decision is adopted, the Protocol of Accession  would be open for acceptance by Moldova, which
would become a Member thirty days after it accepts the said Protocol. The Working PartyWT/ACC/SPEC/MOL/4/Rev.1
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agreed, therefore, that it had completed its work  concerning the negotiations for the accession of
Moldova to the Marrakech Agreement Establishing the WTO.WT/ACC/SPEC/MOL/4/Rev.1
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APPENDIX
ACCESSION OF MOLDOVA
Draft Decision
The General Council,Having regard to the results of the negotiations directed towards the establishment of the terms of
accession of the Republic of Moldova to the Marrakech Agreement Establishing the World Trade
Organization and having prepared a Protocol for the Accession of Moldova,
Decides, in accordance with Article XII of the Marrakech Agreement Establishing the World Trade
Organization that the Republic of Moldova may accede to the Marrakech Agreement Establishing the
World Trade Organization on the terms set out in the said Protocol.WT/ACC/SPEC/MOL/4/Rev.1
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Draft
PROTOCOL OF ACCESSION OF MOLDOVA
TO THE MARRAKESH AGREEMENT ESTABLISHING THE
WORLD TRADE ORGANIZATION
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval of the
General Council of the WTO accorded under Article XII of the Marrakech Agreement Establishingthe World Trade Organization (hereinafter referred to as "WTO Agreement"), and the Republic ofMoldova (hereinafter referred to as "Moldova"),
Taking note of the Report of the Working Party on the Accession of Moldova to the WTO in
document WT/ACC/MOL/.... (Hereinafter referr ed to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of Moldova to the WTO,
Agree as follows:
Part I - General
1. Upon entry into force of this Protocol, Moldova accedes to the WTO Agreement pursuant to
Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which Moldova accedes shall be the WTO Agreement as rectified,
amended or otherwise modified by such legal instru ments as may have entered into force before the
date of entry into force of this Protocol. This Protocol, which shall include the commitments referred
to in paragraph [    ] of the Working Party Report, shall be an integral part of the WTO Agreement.
4.§Except as otherwise provided for in the paragraphs referred to in paragraph [    ] of the Working
Party Report, those obligations in the Multilateral Trade Agreements annexed to the WTO Agreementthat are to be implemented over a period of time starting with the entry into force of that Agreementshall be implemented by Moldova as if it had accepted that Agreement on the date of its entry into
force.WT/ACC/SPEC/MOL/4/Rev.1
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Moldova may maintain a measure inconsistent with paragraph 1 of Article II of the GATS provided
that such a measure is recorded in the list of Article II Exemptions annexed to this Protocol and meetsthe conditions of the Annex to the GATS on Article II Exemptions.
Part II - Schedules
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred toas the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement
on Trade in Services (hereinafter referred to as "GATS") relating to Moldova. The staging of
concessions and commitments listed in the Schedules shall be implemented as specified in therelevant parts of the respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date
of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitmentsannexed to this Protocol shall be the date of entry into force of this Protocol.
Part III - Final Provisions
7. This Protocol shall be open for acceptance, by signature or otherwise, by Moldova until
31 December 1999.
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.
9. This Protocol shall be deposited with the Director-General of the WTO. The Director-General
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptancethereto pursuant to paragraph 7 to each member of the WTO and Moldova.
This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter of the
United Nations.
Done at Geneva this ... day of .... one thousand nine  hundred and ninety nine, in a single copy in the
English, French and Spanish languages each text being authentic, except that a Schedule annexed
hereto may specify that it is authentic in only one or more of these languages.WT/ACC/SPEC/MOL/4/Rev.1
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ANNEX
SCHEDULE – REPUBLIC OF MOLDOVA
Part I - Goods
[to be completed]
Part II - Services
[to be completed]
__________