RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/OMN/18
31 August 1999
(99-3589)
Working Party on the Accession
of the Sultanate of OmanOriginal:  English
ACCESSION OF THE SULTANATE OF OMAN
Additional Questions and Replies
The Ministry of Commerce and Industry of the Sultanate of Oman has submitted additional
replies to questions raised after the fourth meeting of the Working Party held on 7 May 1999, with the
request that they be circulated to Working Party members.  The questions and replies are reproduced
hereunder.
_______________
TABLE OF CONTENTS
Page Question
No. No.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions 3 1-2
(b) Monetary and fiscal policies 3 3
(d) Foreign and domestic investment policies 3 4-5(e) Competition policies 4 6
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE IN GOODS AND
TRADE IN SERVICES 4 7
6. Description of Judicial, Arbitr al or Administrative Tribunals
or Procedures, if Any 5 8-10
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation(a) Registration requirements for engaging in importing 6 11-15
(b) Characteristics of national tariff 8 16-18
(d) Other duties and charges, specifying any charges for services
rendered 9 19WT/ACC/OMN/18
Page 2
(e) Quantitative import restrictions, including prohibitions, quotas
and licensing systems 9 20
(h) Customs valuation 10 21-23
(i) Other customs formalities 12 24
(m-o) Anti-dumping, countervailing duties and safeguard regimes 13 252. Export Regulation
(e) Export quotas, bans, and licensing requirements 13 26-27
(f) Export financing, subsidy and promotion policies 14 28
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidy policies 14 29-30
(b-c) Technical regulations and standards, including measures taken at
the border with respect to imports, andSanitary and phytosanitary measures, including measures taken
with respect to imports 15 31-41
(e) State-trading practices 18 42-45
(l) Government procurement practices 19 46
4. Policies Affecting Foreign Trade in Agricultural Products 20 47
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General 20 48-49
VI. TRADE IN SERVICES
1. General Council 20 50-56
VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral or plurilateral agreements relating to foreign trade in
goods and trade in services 23 57
2. Economic integration, customs union and free-trade area
agreements 23 58WT/ACC/OMN/18
Page 3
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies(a) Main directions
Question 1.  
We would appreciate some indication in the Wo rking Party report, e.g., in paragraph 18, of the
relative size of the output of state-owned firms as a proportion of Oman’s GNP and trade, both
including and excluding the petroleum sector.
Reply:
The information is not presently available.  However, it is negligible.
Question 2.  
Could Oman add to the description in paragraph 22 a statement concerning its authority and
intentions vis-a-vis additional price controls?
Reply:
There is nothing to add to paragraph 22.
(b) Monetary and fiscal policies
Question 3.  
Paragraph 10 in WT/ACC/SPEC/OMN/6 should be updated to reflect Oman’s recent revision
of its tax code in the direction of reducing discrimination against foreign investment.
Reply:
The tax code has recently been revised and its main features are as follows:  (a) For fully
Omani owned companies the first Rial Omani 30,000 of taxable income is exempt, while amounts
exceeding RO 30,000 are taxed at the rate of 12 per cent; (b) The tax rate for income exceeding
RO 30,000 of Omani Public Joint Stock Companies and Mixed Omani-Foreign Companies in which
the Omanis own 51 per cent or more of the capital is 12 per cent;  (c) For Mixed Omani-ForeignCompanies where the share of Omanis is less than 51 per cent, the tax rate for income exceeding
RO 30,000 is (i) 15 per cent for the first RO 100,000, (ii) 20 per cent for the next RO 150,000 and
(iii)25 per cent for amounts exceeding RO 150,000.  The tax code is being revised to further reduce
the discriminatory element.
(d) Foreign and domestic investment policies
Question 4.  
A high level of transparency should be mainta ined by Oman on its investment regime.  For
example, the introduction of new laws and regulations, and the amendment thereto, should be
duly publicized.  Also, a reasonable interval between the introduction and the enactment of the
laws and regulations on the investment regime should be granted.WT/ACC/OMN/18
Page 4
We would hope that an official branch or ag ency as an inquiry point can be established to
provide the relevant information on investment.  Furthermore, the Omani authorities should set
down conditions in a manner as explicit as possible whether or not investment is permitted.
Reply:
The Oman Centre for Investment Promotion a nd Export Development (OCIPED) is providing
this function.
Question 5.  
Paragraph 16 of WT/ACC/SPEC/OMN/6 should be updated to reflect Oman's recent revision of
its investment law to permit higher levels of equity ownership in direct foreign investment in
some sectors without Ministerial approval.  We  believe that Oman should expand the equity
level permitted to foreign investment even further, to permit full equity ownership of foreign
investments.
Reply:
The Foreign Capital Investment Law will be revised by December 2000.
(e) Competition policies
Question 6.  
Despite the non-existence of a competition law,  how does Oman react to the monopoly, semi-
monopoly, or other anti-competitive measures, th at restrict business transactions?  Does Oman
have any intention to introduce the rele vant laws and regulations on competition?
Reply:
Oman does not at present face such situations.  However, Oman is examining the possibility
of eventually having regulations on competition.
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
Question 7.  
We seek a discussion in the draft Working Part y report on Oman’s legislative basis for meeting
the transparency requirements of Article X of the GATT and other provisions of the WTO.
This discussion should include reference to le gal requirements that all laws and other acts
related to trade would be published in the Offi cial Journal promptly and no law, rule, etc.
related to international trade would become effective prior to such publication.  It should alsoinclude reference to Oman’s confirmation that  it would fully implement Article X of the
GATT 1994, Article III of the GATS,  and the other transparency requirements in
WTO Agreements requiring notification and public ation.  We also seek a commitment in the
draft Working Party report and protocol along the following lines:
"The representative of Oman said that, at  the latest upon entry into force of the
Protocol of Accession, Oman would submit all initial notifications required by any
Agreement constituting part of the WTO Agreement.  Any regulations subsequently
enacted by Oman which gave effect to the laws enacted to implement any AgreementWT/ACC/OMN/18
Page 5
constituting part of the WTO Agreement would also conform to the requirements of
that Agreement.  The Working Party took note of this commitment."
Reply:
Oman confirms and undertakes to fully implement Article X of the GATT 1994, Article III of the
GATS and other transparency requirements in  WTO Agreements requiring notification and
publication.  We accept the proposed paragraph.
6. Description of Judicial, Arbitral or Administrative Tribunals or Procedures, if Any
Question 8.  
Regarding the right to appeal, we understand th at Oman's conclusion was that the current
Commercial Court probably does not fully meet  the requirements set out in the GATT 1994 and
the WTO Agreement and that a new law would be promulgated shortly.  We would like to know
the latest situation on this issue.
Reply:
The Law on Commercial Court is in the process of being amended and hopefully will be
promulgated by December 1999.
Question 9.  
In its response to questions 5-8 in WT/ACC/OMN/14, Oman states that its Basic Law provides
for the right of appeal to judicial bodies agai nst all administrative rulings and decisions, and
that laws to address the provisions of WTO Ag reements relating to the right of appeal against
governmental decisions, including Article X of the GATT, "will be promulgated shortly."  We
seek elaboration of paragraph 29 of WT/ACC/SPEC/OMN/6 to describe how Oman will set up
such institutions.
Could Oman indicate when a draft law, decree, regulation, or decision in this regard will be
provided to the Working Party for review?
Reply:
The draft law will be provided to the Working Party by the end of September 1999.
Question 10.  
Will the Commercial Courts have a role in Oman’s implementation of these WTO provisions?
Reply:
Yes, the Commercial Court will have a role in Oman's implementation of these WTO
provisions.WT/ACC/OMN/18
Page 6
IV.  POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation(a) Registration requirements for engaging in importing
Question 11.  
We note that in the Annex to WT/ACC/SPEC/OMN/6, in Table 1, it states "Alcohol and Beer:
may be imported by the registered importers pursuant to the permit of the ROP (Royal Oman
Police)".   This would appear to be a form of activity licensing.  Could Oman explain how a firm
or individual would acquire a permit to engage in the importation of alcoholic beverages, what
criteria are applied and how long the permit lasts?
Reply:
Only firms whose commercial registration includes importation of alcoholic beverages are
eligible to apply for a permit.  Before making importation, prior permission has to be obtained from
Royal Omani Police.  The permit is valid for one year.
Question 12.  
Does Oman maintain any other activity licensing requirements?
Reply:
No, Oman does not maintain any other activity licensing requirements.
Question 13.  
We appreciate Oman’s patient and thorough trea tment of the right to trade in Oman and the
role of commercial agents in the responses to questions 9-23 in WT/ACC/OMN/14 and in
paragraphs 30-33 in WT/ACC/SPEC/OMN/6.  We note that the confirmation in paragraph 33
however, conflicts with the response to questio n 11 in WT/ACC/OMN/14, which states "it is not
legal for foreign individuals to engage in trade."  We would appreciate clarification from Oman
on that point.  In addition, we would appreciate information that would allow discussion in this
section on the issue of activity licensing of importation and exportation in Oman, with
particular reference to Oman’s activity licensing of trade in alcoholic beverages.
Reply:
There is no conflict in the two positions.  The correct position is as follows:
Companies and individuals can engage in importation and distribution of goods if they are
registered in the Commercial Court.  As explai ned previously in replies to different questions,
companies can get Commercial Registration if import trade is mentioned in their Memorandum and
Articles of Association.  As for individuals, only Omanis can get Commercial Registration.  Foreign
individuals are not eligible for Commercial Registration.  Since foreign individuals cannot get
registration and only those having commercial registration can engage in importation, foreignindividuals cannot engage in trade.WT/ACC/OMN/18
Page 7
Question 14.  
We are interested in crafting a suitable commit ment concerning the right to trade in Oman.  We
suggest, as a start, a redrafting of paragraph 33 and an additional commitment, along the
following lines:
"33. The representative of Oman confirmed that no special or unique registration
requirements existed for foreign or domestic persons or firms engaging in importing or
exporting goods except for the activity license specifically listed in Table 1 and except as
provided in WTO Agreements.  The activity license listed in Table 1 did not restrict
foreign participation as it applied equally to foreign and domestic businesses.  He
confirmed that individuals and firms were not restricted in their ability to import or
export goods based on the scope of business or their registration and that they could
easily change their registration to allow for trade.  He further confirmed that there were
no restrictions, such as capital or national ity requirements, on firms wishing to engage
in foreign trade, and that the criteria fo r registration were published in the official
journal and generally applicable to all.
33bis.   The representative of Oman confirmed that from the date of accession Oman
would maintain the right of foreign and domestic firms and individuals to engage in
international trade on a non-discriminatory basis and would ensure that its laws and
regulations relating to the right to trade in goods and all fees, charges or taxes levied onsuch rights would be in full conformi ty with its WTO obligations, including
Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would also
implement such laws and regulations in full  conformity with these obligations.  The
Working Party took note of this commitment."
Reply:
We agree to paragraph 33 as redrafted.  We do not agree to the proposed paragraph 33 bis in
view of the position explained above regarding the position of foreign individuals.
Question 15.  
We would appreciate information from Oman on the following, to addres s the issue of whether
or not the approval process for registration fo r importation must comply with GATT Article
III:4:
Please ensure that reference is made in the Wor king Party report that commercial agents are
not subject to laws or regulations influencing th e decision to import based on purely commercial
considerations.
Please provide details on the criteria upon which the Ministry of Commerce and Industry
approves or denies applications for registration in the Commercial Register.
In addition, for Joint Stock Companies and companies subject to the Foreign Capital
Investment Law, please provide details on the "necessary procedures under the Companies
Commercial Law and/or the Foreign Capital In vestment Law" for applying for commercial
registration.WT/ACC/OMN/18
Page 8
Reply:
It is confirmed that commercial agents are not subject to laws or regulations influencing the
decision to import based on purely commercial considerations.
The criteria have been explained in detail in reply to question 53 in document
WT/ACC/OMN/5.  The reply reads as follows:
"The requirement for registration of a company to  engage in commercial activities is to apply to
the Ministry of Commerce and Industry in the a ppropriate form along with the Memorandum and
Articles of Association of the company and the identif ication documents of the partners or Directors of
the Company.  Joint Stock Companies and Companies subject to the Foreign Capital Investment Lawshould have completed the necessary procedures under the Companies Commercial Law and the
Foreign Capital Investment Law respectively before  they apply for registration in the Commercial
Register.
A Company which is registered in the Commercial Re gister can engage in im portation or distribution of
imports in Oman if importation and distribution of imports is covered in its Memorandum and Articles
of Association.
An individual in order to get registration as a sole proprietor in the Commerci al Register should be an
Omani national, not less than 18 years of age, s hould have the place of  business in Oman, should not
have been convicted of an offense and s hould not have been declared as bankrupt."
(b) Characteristics of national tariff
Question 16.  
As the Omani delegation has explained, applied tariff rates on a series of imported goods
(mainly luxury goods) were increased in early 1999 in order to compensate for the reduced State
revenue after the oil price drop.  Could the Omani delegation provide the Working Party with
an updated list of applied tariffs, if possible based on the HS currently being implemented in
Oman (HS-96 according to the draft report, paragraph 34), which would allow for a
comparison of applied tariffs and offered bound tariffs?  Could the Omani delegationfurthermore provide the information necessary to update paragraphs 35 and 36 of the draft
report (WT/ACC/SPEC/OMN/6)?
Reply:
The applied rates which had been increased in early 1999 are being reviewed and many are
being revised downwards.  The list of rates at present will be submitted.
Question 17.  
We would like to know the latest weighted average MFN tariff after the tariff increase in 1998.
Reply:
The applied rates of duties which had been increased in the beginning of 1999 are being
reviewed and in many cases being revised downwards.  As such the weighted average tariff is not yet
available.WT/ACC/OMN/18
Page 9
Question 18.  
We seek further clarification to the response to Question 66 in document WT/ACC/OMN/5.
According to the Memorandum and subsequent responses, "all good imported for government
use" are subject to zero tariffs.  Does this in clude purchases by the Public Authority for Stores
and Food Reserves for Oman’s strategic reserves? Could Oman provide detailed information
about government purchases with respect to agri cultural products, and if they are subject to
tariffs?
Reply:
Purchases by the Public Authority for Stores and Food Reserves are subject to zero tariff.
There are no government purchases of agricultural products.
(d) Other duties and charges, specifying any charges for services rendered
Question 19.  
We appreciate Oman’s statement in response to question 31 concerning the application of other
duties and charges to imports, and seek Oman’s agreement to add the following text:
"The representative of Oman stated that Om an levied no duties and charges on imports
other than ordinary customs duties and certa in port charges for services rendered.  Any
such charges applied to imports after a ccession would be in accordance with WTO
provisions.  He further confirmed that Oman would not list any other charges in its
Goods Market Access Schedule under Article II:1(b) of GATT 1994, binding such
charges at "zero"."
We would also appreciate the redrafting of paragraph 41, along the following lines:
"41. The representative of Oman confirmed th at charges levied by the Port Services
Corporation and any other fees levied on imports would be applied in conformity with
WTO obligations,  in particular Articles VIII and X of the GATT 1994.  Information
regarding the application and level of these fees, revenues collected and their use, wouldbe provided to WTO Members upon request.  The Working Party took note of these
commitments."
Reply:
We agree to the proposed paragraph.
We agree to paragraph 41 as suggested.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 20.  
We appreciate Oman’s list of its current and authorized bans and restrictions applied to
imports and exports, by tariff line item in Table 2 of the Annex to WT/ACC/SPEC/OMN/6.  Wewould like to review the law, decree, or regu lation that implements the provisions of the
Agreement on Import Licensing Procedures in the operation of these restrictions.  We also
appreciate Oman’s commitment to eliminate its WTO inconsistent quantitative restrictions onWT/ACC/OMN/18
Page 10
trade upon accession, contained in paragraph 46.  We would like to see that commitment
reflected in the protocol, i.e., that paragraph 46 would be redrafted as follows:
"46. The representative of Oman confirmed that, from the date of accession, Oman
would not introduce, re-introduce or apply quantitative restrictions on imports, or othernon-tariff measures such as licensing, quotas, bans and other restrictions having
equivalent effect that could not be justified under WTO provisions.  The representative
of Oman stated that, upon accession, the prohibition on importation of petroleum
products would be eliminated and quantitative restrictions would no longer apply to
fruit and vegetables, fresh and long validity milk, and eggs.  Oman would not restrict
the import of fruit and vegetables except in  conformity with the provisions of the WTO
Agreements.  Oman would not introduce any other import quotas in the future. TheWorking Party took note of these commitments."
Reply:
The regulations implementing the provisions of the Agreement on Import Licensing
Procedures will be submitted to the Working Party for review.  We agree to paragraph 46 as redrafted.
(h) Customs valuation
Question 21.  
Oman explains in paragraph 47 (WT/ACC/SPEC/OMN/6) that if the declared transaction value
is not accepted by the Omani customs authorities,  the value of imported goods is determined on
the basis of a reference value, i.e. the invoice pri ce of identical or similar goods imported earlier.
How is the decision for this invoice price legally justified by the Omani customs authorities?  Do
the customs authorities currently decide upon the price according to their own judgement
without specific legal grounds?  If the reference value is neither decided nor published by law,
how can a decision be made in a consistent manner?
Is the new customs valuation law, expected to be enacted by Royal Decree by December 2000,
fully consistent with the WTO Agreement?  In other words, is our understanding correct thatOman does not invoke a transitional period to implement the Customs Valuation Agreement?
Reply:
The values are determined on the basis of existing practice and customs authorities make an
effort that consistency is ensured.
The new customs valuation law will be promulgated by Royal Decree by December 1999.
Question 22.  
We have reviewed the draft law on customs va luation provided by Oman in WT/ACC/OMN/15.
It is very complete, and we believe that Oman is on its way to a WTO-consistent regime in this
regard.  Could Oman give an update on its projected timeline for implementing WTO customs
valuation rules?
We are not prepared to agree to transitional a rrangements for the implementation of the WTO
Agreement on Customs Valuation after accession.  We seek a revised timeline from Oman forWT/ACC/OMN/18
Page 11
paragraph 50 of WT/ACC/SPEC/OMN/6 and the inclusion of a draft commitment in this
section of the draft WP report along the following lines:
"The representative of Oman assured member s of the Working Party that its new Law
on Customs Valuation would be applied in full conformity with the WTO Agreement on
the Implementation of Article VII of the GATT 1994.  Oman would not have any
measures regarding customs valuation in place at the time of accession which would be
inconsistent with WTO rules, nor would Om an introduce such measures in the future.
Oman did not use measures such as minimum prices, reference prices or lists of prices
in order to calculate customs value or to verify invoices.
The representative of Oman confirmed that, from the date of accession, Oman would
apply fully the WTO provisions concerning cu stoms valuation, including in addition to
the Agreement on the Implementation of Article VII of the GATT 1994, the provisions
on the Treatment of Interest Charges in Cu stoms Value of Imported Goods and for the
Valuation of Carrier Media Bearing Softwa re for Data Processing Equipment.  In
accordance with these latter provisions, only the cost of the carrier medium itself would
be accounted for in the customs value.  He stated that Oman would not use any form of
reference price or fixed valuation schedule for the valuation of imports or to apply
duties and taxes, and that all methods of valuation used were in strict conformity with
those provided for in the WT O Agreement on the Implementation of Article VII of the
GATT 1994.  The Working Party took note of these commitments."
Reply:
The new law on customs value will be promulgated by December 1999.  We accept the
proposed paragraph on customs valuation.
Question 23.  
We commend Oman on its efforts to implement the WTO Valuation Agreement.  Oman has
significantly moved forward in its implementati on of the WTO Valuation Agreement.  We find
that Oman’s implementation of the WTO Valu ation Agreement is nearly complete.  The
following are our comments based on a review of the draft Customs Law and ManagementDecree:
- Oman has not implemented paragraph 8, Note to Article 5 in the Interpretative Note in
Annex I of the WTO Valuation Agreement, wh ich concerns a deduction for local taxes.
- Article 21 of the draft Customs law concerning the calculation of the amount of a
royalty or license fee is inconsistent wi th the WTO Valuation Agreement.  The method
of calculation of the royalty or license fee is irrelevant as to whether it is an appropriate
adjustment to the price actually paid or p ayable.  To make an adjustment for a royalty
or license fee the conditions of Article 8.1(c) and the Note to Article 8 in theInterpretative Notes in Annex I of the WTO Valuation Agreement must be meet.  This
provision should be removed.
- Section 15 of the Management Decree concerning an adjustment for a royalty or license
fee is also inconsistent with the WTO Valuation Agreement.  An Article 8.1(c)adjustment for a royalty or license fee is applicable when imported goods are appraised
under transaction value pursuant to Articl e 1 of the WTO Valuation Agreement.  A
royalty or license fee adjustment pursuant to Article 8.1(c) of the WTO Valuation
Agreement is not appropriate in subsequent methods of valuation, i.e., transaction valueWT/ACC/OMN/18
Page 12
of identical goods, transaction value of si milar goods, deductive value, computed value
and Article 7, as established in Section 15 of the Management Decree.  This provision
should be removed.
- It does not appear that Oman has implemented Article 12 of the WTO Valuation
Agreement concerning transparency.
- We note that Oman has a dispute settlement provision pursuant to the relevant
provision lad down by Oman law as set forth in Article 13 of the draft Customs Law.
We would like clarification that the dispute settlement provisions available in Oman’s
laws provide for the right of appeal to a judicial body as set forth in Article 11 of the
WTO Valuation Agreement.
- We note that there is no reference to the Committee on Customs Valuation Decision 4.1
concerning the "Valuation of Carrier Med ia Bearing Software for Data Processing
Equipment" and the Committee on Customs Valuation "Decision on the Treatment of
Interest Charges in the Customs Value of Imported Goods" in the draft Customs Law
or Management Decree.
- We note that Oman has established procedures for the use of a value declaration form in
Chapter 8 of the Management Decree.  As you know, we do not favour the establishment
and use of value declarations.
The following statements are made in response to Oman’s italicised editorial comments in its
draft Customs Law:
- Article 1.1(c) and (d) of draft Customs Law.  Oman is considering adding a provision
that states that identical and similar goods will not be regarded as identical or similar
unless they were produced in the same coun try as the goods being valued.  We believe
that this addition is unnecessary in that the definitions in Article 1.1(c) and (d) of the
draft Customs Law already state that identi cal and similar goods must be "produced in
the same country."
- We note that on page 17 of the draft Customs Law Oman comments "Include Article 7
of the [WTO Valuation] Agreement here?"  We believe that inclusion of Article 7 of the
WTO Valuation Agreement is unnecessary at this section because Oman implemented
Article 7 of the WTO Valuation Agreement on page 8 under Article 2.3 and 2.4 of the
draft Customs Law.
Reply:
Your comments have been examined and will be taken into consideration.
(i) Other customs formalities
Question 24.  
In paragraph 53 of WT/ACC/SPEC/OMN/6, Oman states that it will "abide by its obligations
under the Agreement on Rules of Origin upon ac cession."  We seek a commitment from Oman
concerning its implementation of the WTO Agreem ent on Rules of Origin, along the following
lines:WT/ACC/OMN/18
Page 13
"53. A member sought implementation of WTO provisions on rules of origin in the
trade regime of Oman.  The representative of  Oman replied that Oman would abide by
its obligations under the Agreement on Rules of Origin upon accession, implementing
regulations to address the procedural requirements of the Agreement.  Regarding both
non-preferential and preferential rules of origin, when legislation was enacted, it wouldaddress the requirements of Article 2(h) and Annex II, paragraph 3(d), which require
provision upon request of an assessment of the origin of the import and outline the
terms under which it will be provided.
53bis. The representative of Oman stated that the Government Regulation establishing
Oman’s rules of origin would be adopted no later than by the date of accession.  He
confirmed that from the date of accession Oman’s rules of origin would comply fullywith the WTO Agreement on Rules of Origin .  The Working Party took note of this
commitment."
Reply:
We accept paragraph 53 and paragraph 53 bis as drafted by this Member.
(m-o) Anti-dumping, countervailing duties and safeguard regimes
Question 25.  
To follow up on questions 27 and 28, and 46-48 of WT/ACC/OMN/14, regarding the Law on
Organization and Encouragement of Industry, Oman states that the Law on Organization and
Encouragement of Industry "is being revised to bring it into conformity with WTO rules.  The
revision/amendment will be completed prior to  Oman’s accession to the WTO.  The Working
Party will be informed when the draft revision is ready."  We would appreciate Oman’s
addition of this issue to the list of legislative instruments monitored as Oman brings its domestic
legislation in line with WTO, and a briefing on it s views as to the timing of the elimination of the
WTO-inconsistent measures provided for in that law.  We support the commitment in
paragraph 59 of WT/ACC/SPEC/OMN/6 not to apply safeguard, antidumping, or
countervailing measures until WTO-consistent laws have been implemented.  We suggest
adding the phrase "and notified to the WTO."
Reply:
The revision/amendment of the Law on Organization and Encouragement of Industry will be
made by October 1999.  We agree to the phrase "and notified to the WTO".
2. Export Regulation
(e) Export quotas, bans, and licensing requirements
Question 26.  
Paragraph 62 of WT/ACC/SPEC/OMN/6 states that "certain textile and clothing items were
subject to voluntary export restraints under bila teral agreements with the United States and
Canada."  Concerning paragraph 62 of WT/ACC/SPEC/OMN/6, the United States and Omanhave a bilateral agreement which provides th at Oman will issue export "visas" for each
shipment of textiles and apparel to the United States.  In completing work on this accession, we
will need to address how the provisions of this  bilateral agreement will be incorporated into
Oman’s WTO obligations.WT/ACC/OMN/18
Page 14
Reply:
We agree to discuss the issue of the bilateral agreement on textiles and clothing.  However, it
may be added that Oman has no WTO obligation in this respect.  The obligation lies with countriesthat impose the quota.
Question 27.  
Concerning paragraph 63 of WT/ACC/SPEC/OMN/6, we seek a statement from Oman on how
and when it intends to bring its export ban on date seedlings into line with Article XI of the
GATT and a commitment along the following lines:
"63bis. The representative of Oman confir med that any export control requirements
remaining in place on the date of accession would be fully consistent with WTO
provisions, including those contained in Articles XI, XVII, XX and XXI of the
GATT 1994.  The Working Party took note of this commitment."
Reply:
We agree to the proposed paragraph 63 bis.
(f) Export financing, subsidy and promotion policies
Question 28.  
We reserve on the subsidy programmes des cribed in the responses to questions in
WT/ACC/OMN/14 and in WT/ACC/SPEC/OMN/6, pending further review.
Reply:
We take note of your reservation.
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidy policies
Question 29.  
Following up on question 47, has the Venture Capital Fund been established?  Over what period
of time will it be implemented?  Please provid e details on the type of loans being considered.
We request further clarification to Oman’s answer in response to question 48.  Oman has stated
that "Import substitution is only an indicative  objective of economic policy".  How does the
Government of Oman support import substitution implicitly?
Reply:
The Venture Capital Fund has not been established.  Import substitution policies were in
vogue in the seventies and early eighties.  Now there is no import substitution policy.  Oman isfollowing an export-led policy.WT/ACC/OMN/18
Page 15
Question 30.  
We seek a statement in the draft Working  Party report along the following lines:
"73bis. The representative of Oman confirmed that any subsidy programmes would be
administered in line with the Agreement on Subsi dies and Countervailing Measures and that all
necessary information on notifiable programmes would be notified to the Committee on
Subsidies and Countervailing Measures in accordance with Article 25 of the Agreement upon
entry into force of Oman’s Protocol of Accession.  The Working Party took note of this
commitment."
Reply:
We accept paragraph 73 bis as proposed.
(b) Technical regulations and standards, including measures taken at the border with
respect to imports
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
Question 31.  
What obstacles are expected to be encounte red when publishing th e draft standards and
accepting the comments by the public thereto?  What obstacles are expected to be encountered
when publishing the Omani standards promptly after the final adoption?
Reply:
We do not expect any obstacles.
Question 32.  
Neither the responses to questions tabled in WT/ACC/OMN/14 nor the description in
WT/ACC/SPEC/OMN/6 adequately addresses the issue we have raised on TBT/SPS.  Nor are
Oman’s efforts to come into compliance with th ese rules adequately reflected.  We seek a more
detailed treatment in the draft elements of a WP report and more specific information in
response to our questions.  We need the supporting documentation promised by Oman to
evaluate whether its stated goal of bringing its regime on technical barriers to trade and
sanitary and phytosanitary measures into line with WTO norms is being accomplished.  We
seek establishment in law substantive provisions and procedural infrastructure for WTO-
consistent regimes with emphasis on market access issues upon accession.
Please provide a list of imports subject to approval or mandatory certification on the basis of
technical and sanitary/phytosanitary requirements.
We are most interested in being able to conf irm that Oman is in conformity with these
Agreements.  Given the market access implications of the implementation of these Agreements
we cannot contemplate finalization of the protocol until WTO-consistent treatment in these
areas is assured.
Concerning standards, we would appreciate a sp ecific list of actions Oman is taking to
accomplish this, keyed to the requirements of  the TBT Agreement (perhaps using the checklist
provided earlier).WT/ACC/OMN/18
Page 16
Reply:
A draft Ministerial Decree covering all aspects of the TBT Agreement (including points
mentioned in the checklist) has already been prepared in Arabic.  An English version of this will be
provided to the Working Party very soon.
Question 33.  
Oman noted in WT/ACC/OMN/12 that the Directorate General for Specifications and
Measurements (DGSM) was conducting a study of the conformity of its laws and procedures
with WTO TBT provisions.  Oman indicated that this study was to have been completed by
December 1998, and that preliminary results will be shared with the Working Party.
It would be especially useful in advancing Working Party analysis of the WTO consistency of
Oman’s TBT regime if Oman would share promptly the results of DGSM’s study.
Reply:
An informal internal study was made by the DGS&M and its results are reflected in the
Ministerial Decree.
Question 34.  
Oman also noted in its Action Plan that work  on a draft Ministerial Decree to implement the
WTO TBT Agreement would commence in January 1999 and be finalized by June 1999.
Document WT/ACC/OMN/12 includes a useful checklist of provisions that the Decree is to
address.
It would be helpful if Oman would share the draft Ministerial Decree with the Working Party
so that Members could better assess how the planned measures will bring its TBT regime into
compliance with WTO provisions.
Reply:
The draft Ministerial Decree has already been prepared in Arabic.  Its translation into English
is in progress.  As soon as the English version of the draft Decree is ready, it will be submitted to the
Working Party.
Question 35.  
The Action Plan noted that an Enquiry Point would be established within DGSM by March
1999.  We would appreciate an update on the status of Oman’s TBT enquiry point.
Reply:
The Enquiry Point within DGS&M has already been established.
Question 36.  
We also request that Oman share the draft regulations for the Quality Mark programme.WT/ACC/OMN/18
Page 17
Reply:
Draft Regulations on the Quality Marks programme have already been prepared in Arabic.
An English version of this will be submitted to the Working Party very soon.
Question 37.  
Oman should use the list of issues in question 70 of WT/ACC/OMN/14 as a guide to specific
actions necessary to implement the WTO TBT Agreement.  We seek an update on Oman’s
actions to date to implement the Agreement and a substantive response to question 70.
Reply:
The Action Plan submitted by Oman in document WT/ACC/OMN/12 confirms that Oman's
present regulatory system on TBT does not fully measure up to the various requirements of the TBT
Agreement.  As stated in the Action Plan, Oman will rectify this situation by issuing an appropriate
Decree before its accession to the WTO.  We appreciate and welcome offers of technical assistance.
There is nothing we can add to the previous reply except that the draft Ministerial Decree has
already been prepared.
Question 38.  
Concerning sanitary and phytosanitary measures, we have the same observations for Oman’s
efforts to date to implement the WTO SPS Ag reement as were stated on the TBT Agreement.
Oman must have the required institutions in place and functioning prior to completion of the
negotiations.  Please provide the promised assessment similar to that noted inWT/ACC/OMN/12 for TBT of Omani laws and procedures with respect to the SPS Agreement.
Reply:
An Action Plan on SPS, similar to the one on TBT, has already been submitted to the
Working Party.
Question 39.  
Please report on specific efforts to date to implement the provisions of the WTO SPS Agreement
(perhaps using the checklist supplied earlier).
Reply:
A draft Ministerial Decree on SPS is at an advanced stage of preparation and will be
submitted to the Working Party very soon.
Question 40.  
The response to question 74 in WT/ACC/OMN/14 avoids the issue that current Oman
regulations on shelf life are inconsistent wi th the provisions of the SPS and TBT Agreements
that require the use of sound science to establish such requirements.  Shelf life requirementsestablish a barrier to imports not consistent with WTO provisions.  Please indicate how Oman
intends to revise its shelf life requirements programme to meet the substantive requirements of
the SPS Agreement.WT/ACC/OMN/18
Page 18
Reply:
There is nothing to add to the reply to question 74 which is very detailed and self-explanatory.
Question 41.  
We have provided checklists to assist Oman in addressing the requirements of these two
agreements.  We would appreciate a written reply on Oman’s efforts to complete them,
including listing draft legislation and specific measures it is taking or intends to take to
implement these agreements.
We seek a commitment from Oman in its protocol of accession to apply all obligations under the
WTO Agreements on Sanitary and Phytosanitary Measures and Technical Barriers to Trade
from the date of accession without recourse to any transition period.  We are not prepared to
conclude these negotiations until we can see full enactment of a WTO system in legislation and
implementation of these Agreements.
Reply:
Oman undertakes and commits to apply all obligations under the TBT and SPS Agreements
from the date of its accession, without recourse to any transition period.
(e) State-trading practices
Question 42.  
In light of the responses to questions 32 and 33 in WT/ACC/OMN/14, concerning Oman’s
reluctance to permit competition in the provision of port services, we would suggest that the
Port Authority could be considered to be a State-trading enterprise.  Will Oman notify the Port
Authority in line with this assessment and appl y the provisions of Article VIII of the GATS in
this regard?
Reply:
Oman will not notify the Port Authority as a State-trading enterprise as the Port Authority
does not engage in importation or exportation of goods.  It is not a State-trading enterprise in terms of
Article XVII of the GATT 1994.
However, Oman agrees to apply the provisions of Article VIII of the GATS to the Port Authority.Question 43.  
Concerning the Public Authority for Stores and Food Reserves, are there any other firms that
purchase commodities for Oman’s strategic reserves?
Reply:
No other firms purchase commodities for Oman's strategic reserves.
Question 44.  
In response to question 219 in WT/ACC/OMN/5, Oman stated that it would supply information
on the Petroleum Development Oman (PDO), and the Oman Refinery Company (ORC) in theWT/ACC/OMN/18
Page 19
form of the questionnaire on State trading.  Did Oman ever supply this information?  If not,
could Oman supply it now?
Reply:
Oman has already supplied the information on PDO and ORC in Annex 6 to document
WT/ACC/OMN/6/Add.1.
Question 45.  
Notwithstanding Oman’s contention otherwise, we believe that its large State-owned firms that
engage in trade in agricultural and petroleum co mmodities operate as State trading enterprises
within the meaning of Article XVII and the Understanding.  We seek information to evaluate
this issue and Oman’s pledge to supply inform ation on the trade operations of these agencies.
Concerning PAMAP and any other State-trading enti ties identified, we seek a commitment for
the protocol along the following lines:
"88. A member sought a statement from Oman regarding the status of PAMAP, and
Oman's agreement that PAMAP be notified as a State-trading enterprise if PAMAP
continued to operate at the time of conclusion of Oman's accession negotiations.  In
reply, the representative of Oman confirmed that his Government had identified the
trading activities of PAMAP as subject to the provisions of Article XVII of theGATT 1994.  PAMAP was slated for privatization, and that in the event that PAMAP
remain in operation when Oman joins the WTO, Oman will notify it as a State trading
enterprise.  He also confirmed that Oman will eliminate any trade restrictions or other
measures inconsistent with the WTO managed by PAMAP. [Oman should supply
similar assurances with respect to the Port Authority and other state-owned tradingcompanies]
88bis. The representative of Oman confirmed that it was the intent of his Government
to eventually eliminate its State trading role .  He further confirmed that after accession
to the WTO, Oman would observe the provisions of Article XVII of the GATT 1994, the
WTO Understanding on that Article, and Article VIII of the GATS regarding State
trading, in particular abiding by the provisi ons for notification, non-discrimination, and
the application of commercial consideratio ns for trade transactions.  The Working
Party took note of these commitments."
Reply:
We accept paragraphs 88 and 88 bis as drafted by this Member.
(l) Government procurement practices
Question 46.  
We remain interested in a commitment from Oman to participate in the Agreement on
Government Procurement.  We seek a commitmen t from Oman to become an observer in the
Agreement upon accession and to initiate negotiati ons for accession by tabling an entity list at
that time.  Has Oman reviewed its options with regard to associating itself with the Agreement
as an observer and/or a member?  What are Om an’s intentions concerning accession to the
Agreement?WT/ACC/OMN/18
Page 20
Reply:
Oman would become an observer to the Agreement on Government Procurement upon
joining the WTO.  Oman would participate in the work of the Working Group on Transparency in
Government Procedures and would join any multilateral agreement resulting therefrom.
4. Policies Affecting Foreign Trade in Agricultural Products
Question 47.  
Does the Government of Oman maintain direct or indirect import substitution policies with
respect to agricultural products?  If not, in what way does Oman pursue this policy goal in theagricultural sector?
Reply:
No. Oman does not maintain direct or indirect import substitution policies with respect to
agricultural products.  Oman pursues this policy only through tariffs.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
Question 48.  
Please address the issue of the need for Oman to  establish a Patent regime prior to accession to
the WTO.
Reply:
GCC Unified Patent System is already in force in Oman since May 1999.  Oman subscribes to
this with the issue of a Ministerial Decree in September 1993.
Question 49.  
Please provide a status report on Oman’s effort s to revise its IPR laws and implement the WTO
TRIPS Agreement.
Reply:
Draft laws on Trademarks, Industrial Designs, Protection of Geographical Indications and on
Layout Designs of Integrated Circuits have already been prepared and submitted to the Working Party
(see document WT/ACC/OMN/17 dated 17 August 1999) .  Amendments to the Copyrights Law are in
an advanced stage of preparations and will be submitted to the Working Party very soon.
VI. TRADE IN SERVICES
1. General
Question 50.  
With regard to professional services, we have found some discrepancy between the document
Elements of a Draft Report dated 8 March 1999 (WT/ACC/SPEC/OMN/6) and the latestWT/ACC/OMN/18
Page 21
services offer presented in December 1998.  Indeed  in the former document, in order to provide
consultancy services relating to the practice of home country law and international law, foreign
lawyers are required to establish a joint-venture company with an Omani partner;  however, in
the latter document, such a description is not ment ioned.  Is it correct that a foreign lawyer is
allowed to provide legal consultancy services on home country law and international lawwithout establishing a joint-venture company with an Omani partner?
Reply:
There is no contradiction in the two documents.  According to Oman's offer on services,
foreign lawyers can provide consultancy services on home country law and international law only by
establishing joint venture companies with Omani lawyers.
Question 51.  
With regard to MFN exemptions, we are in the process of analyzing the proposal by Oman to
lift all MFN exemptions after completing the implementation of a Unified Economic Agreementfor GCC countries.  Thus, further clarifications and requests may be formulated to the
Sultanate of Oman at a later stage.
Reply:
We take note of your comments.
Question 52.  
We appreciate reply to Question 107 of WT/ACC/OMN/14 regarding the conditions that have to
be met in order to obtain a work permit.  We note that the scope of Mode 4 commitments that
will be undertaken by Oman are broader than the current Ministry procedures in that Mode 4
pertains to movement of natural persons, whether or not in connection with a company
established under Omani law.  We also note that we remained concerned with the implications
of the policy of Omanization for Oman’s servic es commitments and are continuing to address
the issue in bilateral negotiations.  Question  113 refers to "agency services".  What kind of
services does Oman consider to be covered under this category?
Reply:
Agency services means commercial agency services.
Question 53.  
Paragraph 31 of WT/ACC/SPEC/OMN/6 states that "... A commercial agent was defined as an
individual or company selling, promoting the sale and distribution of goods, or providing
services whether in the capacity of agent, repres entative or intermediary of the manufacturer or
supplier of goods.  Only Omani nationals or companies with no less than 51 per cent Omani
ownership could be appointed as commercial agents...".
This would appear in conflict with the statement in paragraph 111 that "all business services
were subject to limitations on commercial presence (maximum 65 per cent foreign ownership)and movement of natural persons."  Could Oman clarify this apparent contradiction?WT/ACC/OMN/18
Page 22
Reply:
Paragraph 111 of WT/ACC/SPEC/OMN/6 does not reflect the correct position as regards
share of foreign equity.  Share of foreign equity for most business services is not allowed up to 65 per
cent.  However, for some business services the share of foreign equity is limited to 49 per cent.
Having said that, Oman is not making a commitment on commercial agency services and as
such the horizontal limitations or sector-specific limitations are not relevant in this case.
Question 54.  
Paragraph 110 of WT/ACC/SPEC/OMN/6 states that "....There were no limitations on the
number of foreign service suppliers, on the total value of service transactions or assets, or on the
total number of service operations or total quantity of service output, except for services sectors
reserved for the State."  Could Oman clarify how this is consistent with the situation in banking
services described in paragraph 112 where each bank is limited to only four branches?
Reply:
The situation as regards branches of banks, whether foreign or domestic, has been clearly
explained in reply to question 44 in document WT/ACC/OMN/6.  That may be reflected in the draft
report.
Question 55.  
Paragraph 111 of WT/ACC/SPEC/OMN/6 states that "Oman maintained no restrictions on
cross-border supply and consumption abroad, ...".  If this is true, why did Oman leave mode 1in that services sector "unbound" in its services market access offer?  If Oman has any
limitations on the ability of foreign service providers to solicit business in Oman without
commercial presence which would prevent a commitment, we would appreciate clarification.
Reply:
Commitments do not necessarily have to be made on the basis of the existing situation.  In
any case, for most of the services sectors and sub-sectors included in Oman's schedules, Mode 1 is
without limitations.  It is only in the banking and telecom sub-sectors that Mode 1 is unbound.
Question 56.  
Paragraph 112 of WT/ACC/SPEC/OMN/6 states that "... Foreign firms could obtain seats on
the stock exchange in joint-vent ure with Omani partners."  This requirement completely alters
the meaning of Oman’s offer in securities services, and is not mentioned in it.  We would
appreciate clarification that confirms the scope of the current offer in Oman’s services schedule.
Reply:
The horizontal limitation regarding the share of foreign equity is applicable to services
included in the Schedule, including securities servic es.  According to Oman's offer, foreign service
suppliers, including securities services, can establish commercial presence only through joint ventureswith Omanis.  The share of foreign equity is lim ited in terms of the stipulation in the horizontal
section.WT/ACC/OMN/18
Page 23
VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade in
services
Question 57.  
We remain interested in a commitment from Oman to adhere to the WTO Agreement on Trade
in Civil Aircraft from the date of accession, and to adopt the "zero" level tariffs on civil aircraft
and parts of civil aircraft provided for in the Agreement.
Reply:
Oman does not see any advantage in joining the Agreement on Trade in Civil Aircraft.
2. Economic integration, customs union and free-trade area agreements
Question 58.  
Please provide documentation on how Oman is implementing its tariff reductions within the
Free Trade Area Agreement between Arab League members under which a free trade area willcome into existence within 10 years starting from 1 January 1998.  Did Oman reduce its tariffs
by an additional 10 percent on 1 January 19 99 vis-à-vis imports from other Arab League FTA
members?
Reply:
Oman reduced its tariffs by an additional 10 per cent on 1 January 1999.
Question 59.  
Regarding response to Question 113 in WT/ACC/OMN/14 regarding the scope to which services
is included under the GCC agreement, Oman includes a list of some sectors that are not subjectto liberalization.  Is this the entire list?  If not, what other sectors with reference to w/120 are
not included under the agreement?  Which modes of supply are or are not included?
Reply:
In principle all sectors and sub-sectors of services are included for liberalization under the
GCC Unified Economic Agreement.  However, at present the sectors listed in reply to question 113
are not yet liberalized.
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