RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/OMN/22
13 January 2000
(00-0140)
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, with the request that th ey be circulated to Working Party members.  The
questions and replies are reproduced hereunder.
_______________
TABLE OF CONTENTS
Page
NumberQuestion
Number
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies(a) Main directions 3 1
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE IN GOODS AND TRADE INSERVICES
6. Description of Judicial, Arbitr al or Administrative Tribunals or
Procedures32
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation(a) Registration requirements for engaging in importing 4 3-5(b) Characteristics of national tariff 7 6-7
(e) Quantitative import restrictions, including prohibitions, quotas and
licensing systems88
(h) Customs valuation 9 9
(l) Rules of origin 9 10(m)(n)(o) Anti-dumping, countervailing duty and safeguard regimes 10 112. Export Regulation(c) Quantitative export restrictions 10 12
(f) Export financing, subsidy and promotion policies 11 13
3. Internal Policies Affecting Foreign Trade in Goods(a) Industrial policy, including subsidy policies 12 14-16(b) Technical regulations and standards, including measures taken at
the border with respect to imports13 17-23
(c) Sanitary and phytosanitary measures, including measures taken
with respect to importsWT/ACC/OMN/22
Page 2
Page
NumberQuestion
Number
(l) Government procurement practices 17 24
4. Policies Affecting Foreign Trade in Agricultural Products 17 25
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General 18 26-34WT/ACC/OMN/22
Page 3
II. ECONOMIC POLICIES
2. Economic Policies(a) Main directionsQuestion 1.We support the commitment in paragraph 25 of SPEC/OMN/7.We seek a statement earlier in this section ci ting the legal authority for the application of
current and future price controls
Reply:
There is no legislation on price controls.  The Ministry of Finance applies price controls by
executive orders.
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
6. Description of Judicial, Arbitral or Administrative Tribunals or Procedures, if anyQuestion 2.We appreciate Oman’s statement in paragraph 31 that "precise laws dealing with the right of
appeal against governmental decisions provided for in WTO Agreements, including inparticular Article X of the GATT  1994, would be promulgated" through "amendments to the
Law on Commercial Court".  We await the copy  of the amendments for Working Party review
promised for the end of September in th e response to question 9 in WT/ACC/OMN/18.
We understand from Oman’s statements at the informal Working Party meeting that
promulgation of amendments guaranteeing the right of appeal in commercial matters to an
independent tribunal will be delayed from December 1999, as earlier contemplated, until some
time in 2000.  In light of this fact, we seek incl usion of the following commitment as to the timing
for promulgation of the amendments:
"32. The representative of Oman confirmed that  no later than [31 March 2000,] Oman’s laws
would provide for the right to appeal admini strative rulings on matters subject to WTO
provisions to an independent tribunal in conformity with WTO obligations, including but not
limited to Article X:3(b) of the GATT 1994.  The Working Party took note of this commitment."
We ask Oman to provide to the Working Party for review as soon as possible a copy of the
amendments to the Law on Commercial Courts  dealing with the right of appeal against
governmental decisions provided for in WTO Agr eements, including in particular Article X of
the GATT 1994.  We will need to review the text of  these amendments to finalize work on this
section of the report.WT/ACC/OMN/22
Page 4
Reply:
Paragraph 32 is acceptable as follows:
"32. The representative of Oman confirmed that no later than 30 June 2000, Oman's laws would
provide for the right to appeal administrative rulings on matters subject to WTO provisions toan independent tribunal in conformity with WTO obligations, including but not limited to
Article X:3(b) of the GATT 1994.  The Work ing Party took note of this commitment."
Oman would provide copies of the draft amendments to the Law on Commercial Courts
dealing with the right of appeal against governme nt decisions provided for in WTO Agreements as
soon as these are ready.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation(a) Registration requirements for engaging in importing
Question 3.We remain concerned that Oman’s registration requirements for importers constitute a
violation of Article III of the GATT, in that re strictions exist on the right to import foreign
goods that do not exist for domestic goods.  For us, this is a question of trading rights.  We
thank Oman for its good efforts to explain the difference between Commercial Registration and
Commercial Agency to the Working Party.  The co nnection to trading rights is clearer in the
requirements of Commercial Registration than in Commercial Agency.
We submit the following questions to ensure th at our understanding of the facts is accurate:
- Please confirm that the "relevant" require ments for commercial registration for foreign
firms contained in the Foreign Capital Investment Law include minimum capitalization
requirements and equity limitations.
- Please confirm whether or not foreign indi viduals can register sole proprietorships in
Oman under current or prospective laws, and if so under what conditions and
circumstances?
- Paragraph 33 of WT/ACC/SPEC/OMN/7 states that "foreign individuals were not
eligible for commercial registration and could therefore not engage in importation ordistribution of imports in Oman."  Can foreign individuals import goods for onward
sale in Oman under any circumstances?
- Could foreign individuals purchase domestic goods for onward sale in Oman?  If so
under what conditions and circumstances?
We seek only the recognition that individuals  and firms may import goods into Oman, and that
this right to import does not to necessarily extend to the distribution of these goods in Oman  In
this regard, Oman’s current laws , regulations, and requirements will need revision to meet its
obligations under Article III and Article XI of the GATT.  Oman’s statement recognizing thisand its commitment to make the necessary changes should be reflected in the Working Party
report.WT/ACC/OMN/22
Page 5
Reply:
There is no discrimination as between  imported and domestically produced goods.  The same
conditions apply to both imported and domestic goods.  The distinction is between "foreign and
domestic individuals" and not between "foreign and domestic goods".
The replies to the four questions are as follows:
(a) It is so confirmed.
(b) Foreign individuals cannot register for sole proprietorships.
(c) Foreign individuals can import goods for their own personal use, but not for onward
sale in Oman.
(d) Foreign individuals cannot purchase domestic goods for onward sale in Oman.
Question 4.
Concerning Oman’s activity licensing for the importation of alcohol and beer, has a foreign
enterprise ever been registered or granted a permit pursuant to the permit of the ROP (Royal
Oman Police) to import these articles?
Reply:
We have no objection to see the following information reflected in the text of paragraph 37 of
the Draft Report:
"Oman stated that while no licenses to import beer or alcoholic spirits had been issued in
recent years, six joint ventures, with foreign participation were currently registered for this purpose."
Question 5.
We suggest that the current text of paragraphs 32-37 be revised to reflect Oman’s commitment
to permit the right of import and export without equity investment, making clear that this right
is distinct from the right to distribute goods in  Oman’s domestic market, a service scheduled
under GATS.  To start, we suggest that this section be subtitled "(the right to import and
export)"
Trading Rights (the right to import and export)
32.          Some members requested Oman to clarify the right of firms and individuals to
trade, i.e., to import and export goods, to understand better how Oman’s conditions
compared with the requirement of GATT Ar ticles III:4 and XI.  The representative of
Oman said that no specific requirements existed for engaging in importation;  it could
be undertaken by any company or individual registered with the Ministry of Commerce
and Industry under the relevant laws, i.e. the Oman Commercial Law, the Commercial
Companies Law and the Foreign Capital Inve stment Law.  An enterprise seeking
registration to engage in commercial activities submitted an application form togetherwith its Memorandum and Articles of Association, and documents identifying the
partners or company directors, to the Ministry of Commerce and Industry.  Joint-stock
companies and enterprises subject to the Foreign Capital Investment Law should
complete the necessary procedures under the Commercial Companies Law and the
Foreign Capital Investment Law, respectivel y, before applying for registration in the
Commercial Register.  Once registered, an en terprise could engage in importation or
distribution of imports provided these ac tivities were mentioned in its Memorandum
and Articles of Association.  Registered companies could amend their registration, and
acquire the right to trade, by amending their Memorandum and Articles of Association
prior to applying for an amendment in their commercial registration.WT/ACC/OMN/22
Page 6
33. The relationship between a principal/supplier and his commercial agent in
Oman was governed by provisions in the Law on Commercial Agencies.  A commercial
agent was defined as an individual or company selling, promoting the sale and
distribution of goods, or providing serv ices whether in the capacity of agent,
representative or intermediary of the manu facturer or supplier of goods.  Only Omani
nationals or companies with no less than 51 per cent Omani ownership could be
appointed as commercial agents.  Foreign individuals were not eligible for commercial
registration and could therefore not engage in importation or distribution of imports in
Oman.  Omani nationals could obtain commer cial registration provided they had a
place of business in Oman, no criminal record or involvement in past bankruptcy
proceedings, and were minimum 18 years of age.  Citizens of other Gulf CooperationCouncil countries were treated as Omani citizens in accordance with Article 8 of the
Unified Economic Agreement.  This Article, which was implemented in a progressive
manner, did not guarantee GCC nationals the right to act as commercial agents in
Oman.  The representative of Oman confirmed that commercial agents were not subject
to laws or regulations influencing the decision to import based on purely commercialconsiderations.
34. A member stated that the Law on Comm ercial Registration would need to be
amended to bring it into conformity with  the national treatment provisions of GATT
Article III prior to WTO accession  due to requirements for the import of goods and
conditions of, inter alia, distribution that are less favourable than those for similar
domestic goods.  In his view, legal provisions analogous to Oman's Law on Commercial
Registration had been found inconsistent with Article III:4 in GATT Panel Reports.
The representative of Oman saw no conflict between the Law on Commercial Agencies
and the provisions of GATT Article III.  Foreign firms not based in Oman could export
goods to Oman through any importer/distrib utor registered in Oman without using a
commercial agent.   Importers in Oman were not required to import through a
commercial agent.  Individuals and firms could import goods for their own use without
restriction, subject to payment of customs duty, if any.  Omani domestic goods could be
distributed only through individuals or  companies registered in the Commercial
Register as distributors of goods.
34bis.    A member expressed concern that since Oman’s laws and regulations do not
distinguish between importing or exporting and providing services, such as distribution,
after importation those regulations could be considered a restriction on imports and
inconsistent with Article XI of GATT 1994.  The representative of Oman recognized the
distinction drawn in the WTO between the right to import and export under the GATT
and the right, under the GATS, to provide services such as distribution, and
transportation, with respect to imported goods.  Without prejudice to Oman’s schedule
of commitments on services, Oman would modify the relevant laws, regulations and
requirements to permit foreign firms, including sole proprietorships,  to register as
importers without limitation on equity.
35. Some members noted that alcohol and beer could be imported only by registered
importers pursuant to permission by the R oyal Oman Police (Table 1), and this would
appear to be a form of activity licensing.  In reply, the representative of Oman said that
only firms having included importation of alcoholic beverages in their commercialregistration were eligible to apply for a permit.  The permit, valid for one year, had to
be obtained from the Royal Omani Police prior to importation.  Oman maintained no
other activity licensing requirements.WT/ACC/OMN/22
Page 7
36. 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 licence specifically listed in Table 1 and except as
provided in WTO Agreements.  The activity licence listed in Table 1 did not restrict
foreign participation as it applied equally to foreign and domestic businesses.  Heconfirmed 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 importation.  He further confirmed that
there were no restrictions, such as capital or  nationality requirements, on firms wishing
to engage in foreign trade, and that the cr iteria for registration were published in the
official journal and generally applicable to all.
37. The representative of Oman confirmed that from the date of accession Oman
would maintain the right of foreign and domestic firms and individuals to import and
export engage in international trade on a non-discriminatory basis and would ensure
that its laws and regulations relating to the right to trade in  import and export goods
and all fees, charges or taxes levied on such rights  would be in full conformity 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, regulations and requirements in full
conformity with these obligations.  The Working Party took note of this commitment.
We seek Oman’s assistance in addressing th e issue of the right to import and export in
Oman prior to finalization of the Working Party report and protocol.
Reply:
Paragraphs 32, 33 34, 35 and 36 are acceptable .
As for the proposed paragraph 34bis, we  would accept the following formulation:
"34bis.  A member expressed concern that since Oman’s laws and regulations do not
distinguish between importing or exporting and pr oviding services, such as distribution after
importation, those regulations could be considered a restriction on imports and inconsistent with
Article XI of GATT 1994.  The representative of Oman recognised the distinction drawn in the WTO
between the right to import and export under the GATT and the right, under the GATS, to provide
services such as distribution, and transportation, with respect to imported goods.  However, therepresentative of Oman did not agree that Omani regulations could be considered as a restriction on
imports inconsistent with Article XI of GATT 1994.  Foreign and domestic firms registered in Oman
are allowed to import goods, subject to the condition that they get commercial registrations which
they can get without difficulty.  Foreign individuals can import goods for their personal use.  There is
thus no restriction on imports."
Paragraph 37 is acceptable with the following change:
In the second line, after the words "foreign and domestic firms" the words "registered in
Oman" should be added, and the words "and individuals" should be deleted.
(b) Characteristics of National Tariff:
Question 6.The reply to question 18 of WT/ACC/OMN/18 states "Purchases by the Public Authority for
Stores and Food Reserves are subject to zero tariff.  There are no government purchases ofagricultural products."  Paragraph 98 of WT/ ACC/SPEC/OMN/7, however, states "The Public
Authority for Stores and Food Reserves conducted purchases and sales in connection with the
stocking of strategic food reserves of rice, sugar, tea, milk powder and edible oils.  The
Authority imported only rice, on the basis of  open tender and in competition with privateWT/ACC/OMN/22
Page 8
importers."  We would appreciate it if Oman would clarify this apparent contradiction, for the
record.
Reply:
The position is clarified as under:
The Government of Oman does not import any agricultural products for its own use.  The Public
Authority for Stores and Food Reserves imports only rice for stocking as strategic food reserve.
However, private importers can also import rice and thus the Public Authority is in competition with
private importers.  The Public Authority and the private importers pay the same rate of duty on
imported rice, which is zero percent.  It may be stated for purposes of transparency that the Public
Authority purchases sugar, tea, milk powder and edible oil from the open market in Oman and stocksthese as food reserves.
Question 7.
At the informal Working Party meeting on 1 Octo ber, Oman stated that the Public Authority
for Stores and Food Reserves does not qualify for a tariff exemption on its imports, but instead
does not pay tariffs because the items it impo rts are subject to zero applied tariff rates.
Paragraph 44 should be redrafted to reflect this information.
Paragraph 44 states that, "All imports from Gulf Cooperation Council countries were exempt
from duty within the framework of the GCC free trade area."  This statement should be moved
to the section on trade agreements, as the duty free treatment granted is not a tariff exemption,
but rather a tariff preference.
Reply:
Oman has no objection to the redrafting of paragraph 44.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 8.
We appreciate table 1 in WT/ACC/SPEC/OMN/7, listing the bans and restrictions applied to
imports that Oman believes can be justified under WTO, and that it intends to retain after
accession.
What measures has Oman taken to implement the WTO Agreement on Import Licensing
Procedures?  We would appreciate a description in the  Working Party report what measures
Oman is taking to implement the WTO Agreement on Import Licensing Procedures.  (These
procedures are relevant to the regulation of im ports of restricted goods, or goods subject to
prior authorization for standards or SPS purposes.)
Does Oman intend to regulate imports of restricted goods, or goods subject to prior
authorization for standards or SPS purposes without reference to the Import Licensing
Procedures Agreement?
We would also like to have a description, in paragraph 50 or a new paragraph 50bis of how
Oman intends to dispose of its WTO-inconsistent quotas and bans, e.g., by indicating that the
restrictions on the listed products have been abolished or replaced and by naming the legislative
instrument(s) that will accomplish this .
We remain interested in reviewing the law, decr ee, or regulation that accomplishes this, as wellWT/ACC/OMN/22
Page 9
as the legislative instrument that implements  the provisions of the Agreement on Import
Licensing Procedures in the operation of these restrictions.
We appreciate the commitment in paragraph 51 of WT/ACC/SPEC/OMN/7.  We support its
expansion to include a commitment that Oman  will implement the Agreement on Import
Licensing Procedures.
Reply:
Oman has drafted a Ministerial Decree on Import Licensing that is in conformity with the
Agreement on Import Licensing Procedures.  A copy of the draft Ministerial Decree is being
submitted to the WTO Secretariat.
WTO-inconsistent quotas and bans on petroleum products, fruit, vegetables, milk and eggs
are being abolished.  Copies of relevant Decrees are being sent to the WTO Secretariat.
(h) Customs valuation
Question 9.
We provided comments on Oman’s draft custom s valuation legislation at the last Working
Party meeting.  In response to question 23 of WT/ACC/OMN/18, Oman stated that these
comments would be taken into consideration, presumably in the development of the legislation.Oman also stated in response to questions 21 and 22 that Oman’s new customs valuation law
would be implemented by Decree by December 1999.  The text of Oman’s draft customs
valuation legislation circulated in mid-October represents a major retreat from its commitment
to implement the WTO Customs Valuation Agreemen t on the date of accession.  Based on our
initial review, no more than half of the WTO Ag reement’s provisions are covered in this draft.
The current text also does not address the specific deficiencies noted by us and raised in
paragraph 56.
Does Oman have additional customs valuation legislation in development, e.g. amendments to
this law or draft regulations that will cover th e missing material?  When will Oman provide for
the missing parts of the WTO Agreement on Cust oms Valuation in additional regulations?  We
would like to review a copy of the draft or final Decree as soon as possible.
We are pleased that Oman is prepared to accept the commitment in paragraphs 57 and 58.
Reply:
A revised draft law on customs valuation, including changes which take into account the
comments made by WTO members, has been prepared and is being sent to the WTO Secretariat.  This
will fully implement the Agreement on Customs Valuation.
(l) Rules of origin
Question 10.We appreciate Oman’s incorporation of the commitments in paragraphs 60 and 61 of
WT/ACC/SPEC/OMN/7.
  We note however, that no reference is made to legislation on Rules of
Origin in the table in WT/ACC/OMN/11/Rev.1.
We have reviewed Oman’s ministerial decree de aling with the procedural protections for
determination of origin, and we ask that paragraph 60 be redrafted to refer to and describe theWT/ACC/OMN/22
Page 10
decree and any other laws or regulations on rule of origin that Oman has developed, including
the date certain by which they are expected to be promulgated.
We note, however, that Oman has no other legislation before the Working Party on rules of
origin.  Could Oman please provide this legislation?  How will Oman implement the WTOAgreement on Rules of Origin without legislation or regulations conforming to its provisions?
Reply:
Paragraph 60 has already been redrafted by the WTO Secretariat reflecting the draft Decree
on rules of origin.
Oman has no other legislation on rules of origin.  It will develop this after accession.  At
present Oman does not apply rules of origin for MF N trade.  It only applies these for preferential
trade.
(m) Anti-dumping, countervailing duties and safeguard regimes
Question 11.Over a year ago, Oman indicated that it would amend the Law on Organization and
Encouragement of Industry, and Oman has stated in paragraph 65 of the draft Working Partyreport that these amendments would be enacted in October 1999.  Please provide the
amendments.  We look forward to reviewing th e legislation amending the Law on Organization
and Encouragement of Industry.
We appreciate Oman’s commitment in paragraph 67 of WT/ACC/SPEC/OMN/7.
Reply:
A copy of the draft Decree amending the Law on Organisation and Encouragement of
Industry is being sent to the WTO Secretariat.
2. Export Regulation
(c) Quantitative export restrictionsQuestion 12.
Concerning Oman’s regulation of exports of certain textile and clothing items under bilateral
agreements with the United States.  We suggest that paragraph 70 and the discussion of the
regulation of textile exports be moved to a separate section on textiles, e.g., in the section on
sectoral trade, in WT/ACC/SPEC/OMN/7.
In addition, we seek incorporation of the follo wing protocol commitment in the Working Party
report:
Agreement on Textiles and Clothing
xx.  The representative of Oman stated that the quantitative
restrictions on imports of textiles and clothing products
originating in Oman betwee n Oman and WTO members that
were in force on the date prior to the date of accession of Oman
to the WTO should be notified to the Textiles Monitoring BodyWT/ACC/OMN/22
Page 11
(TMB) by the Members maintainin g such restrictions and would
be applied for purposes of Article 2 of the Agreement on Textiles
and clothing.  He said that the provisions of that Article, in
particular paragraphs 13 and 14 thereof, would apply in stages in
respect of base levels and growth rates from the date of Oman'saccession.  The Working Party took note of this commitment.
We appreciate Oman’s incorporation of the commitments in paragraph 72 of
WT/ACC/SPEC/OMN/7.
Reply:
Oman has no problem with the drafting changes except that in the last but one sentence, the
words "from the date of Oman’s accession" be deleted, and the last sentence be also deleted
as there is no commitment by Oman in this paragraph.
(f) Export financing, subsidy and promotion policies
Question 13.Oman’s description of concessional export financing in paragraph 73 of
WT/ACC/SPEC/OMN/7 describes what is clearly an export subsidy within the meaning of Art.3.1 of the WTO Agreement on Subsidies and Countervailing Measures.  Oman has defended its
concessional export financing program as simi lar to other such programs, including the U.S.
Import-Export bank.  The United States and a number of other countries that provide import-
export financing observe and respect the OECD gu idelines on terms for such financing.  Has
Oman formally adhered to these guidelines?  If not, would Oman be willing to do so?
In the absence of multilateral discipline on su ch programs, they can be considered to be
prohibited export subsidies within the me aning of Article 3.1 of the WTO Agreement on
Subsidies and Countervailing Measures. and shou ld be eliminated.  We seek a commitment
from Oman either to notify this measure and to eliminate it within a specific time frame or
Oman’s adherence to OECD guidelines on terms for such financing.
We provide the following draft language to replace paragraph 76 as follows:
76. The representative of Oman states that the export financing support from the
Export Guarantee and Financing Unit (EGFU) of the Oman Development Bank
described in para 75 was an export subsidy which met a definition of a prohibitedsubsidy within the meaning of Article 3 of the Agreement on Subsidies and
Countervailing Measures.  He confirmed that prior to accession to the WTO Oman
would alter the program to ensure that the support is being provided in conformity with
the Agreement, ie., consistent with item (K) of Annex 1 to the Agreement, the support
will be provided at or above rates the government does or would have to pay in order toobtain funds of the same maturity and other credit terms, or it will otherwise be
provided in conformity with the OECD intere st rate guidelines stipulated for such
financing.  Otherwise, Oman would eliminate the program entirely prior to 31
December 2000.  He further confirmed that from the date of accession, Oman would not
maintain  nor introduce any other prohibited subsid ies.  The Working Party took note of
this commitment.WT/ACC/OMN/22
Page 12
Reply:
Oman agrees to the proposed language to clarify the commitment, except that the sentence
"Otherwise, Oman would eliminate the programme entirely prior to 31 December 2000," should be
deleted.
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidy policiesQuestion 14.
We note that in paragraph 77, Oman states that the focus of its economic policy package "was
directed towards capital, technology and knowl edge intensive industries with emphasis on
international competitive export -oriented industries."  What criteria are specifically applied to
determine what firms and industries get aid?
Reply:
No specific criteria are applied.
Question 15.
At the last W orking Party  meeting, Oman stated that export orientation is one of the criteria
considered when granting aid to firms from its economic policy package.  Does this mean that
export performance or some sort of numerical level of export orientation is a qualifying
criterion in order to get aid, either alone or in combination with other factors?  Is export
orientation a determinant or contributing factor in the decision to grant aid, even if other
factors are taken into account?
Reply:
Export performance or numerical levels are not the qualifying criteria.  Export orientation is a
contributing factor in the decision to grant aid.
Question 16.
Concerning the statement in paragraph 82, could Oman confirm that neither export subsidies
nor import substituting subsidies were used to implement the Fifth five Year Development
Plan?
We appreciate Oman’s incorporation of the commitments in paragraph 83 of
WT/ACC/SPEC/OMN/7.
Reply:
No export subsidies nor import substituting subsidies were used to implement the Fifth 5 Year
Development Plan.WT/ACC/OMN/22
Page 13
(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 17.
Concerning the draft Ministerial Decree impl ementing the WTO Agreement on Technical
Barriers to Trade, we have the following initial comments.  We would appreciate Oman’s
incorporation of these comments in its draft text:
Article 2.1 - Neglects to mention that treatment no less favorable than that accorded to products
of domestic origin and accorded to similar products originating in other countries shall be
accorded to similar products imported from the territories of other Members.
Article 4.1 - This text is unclear on the point of whether Oman’s conformity assessment
procedures are applied more strictly than neces sary to ensure that Oman has confidence that
imported products conform with their applicable technical regulations or standards.  To clarify,
we suggest the following changes to the text:
4.1     Conformity assessment procedures are not prepared, adopted or applied with a
view to create unnecessary obstacles to international trade. Conformity assessmentprocedures shall not be applied more strictly than un
necessary to give the exporting
Members  the Directorate  adequate confidence to prove that their  imported   products
conform with the applicable technical regulations  or standards , taking into account of
the risks of non-conformity.
Article 4.3. - Neglects to mention that treatment no less favorable than that accorded
to suppliers of products of domestic origin and to suppliers of similar products
originating in other countries shall be  accorded to suppliers of similar
products originating in the territories of other Members.
Article 4.5. - Some clarification is necessary to highlight what the Directorate is studying.  We
suggest the following:
4.5   The Directorate shall study the claims  complaints  related to conformity assessment
procedures and the necessary corrective action will be taken, when those complaints are
justified .
Article 4.7 - Why has Oman specifically singled out the EN 45000 series as being equivalent to
some of the international guides and recommendations for conformity assessment procedures?
There are other guides.
Article 5.2 - For clarity, we suggest the following:
5.2  The Directorate is authorized to enter into negotiations with other Members  Members
are encouraged to be willing to enter into negotiations  for the conclusion of agreements
for the mutual recognition of results of ea ch other’s conformity assessment procedures
for facilitating trade in the concerned products.
Article 5.3. - It appears to us that the text is unclear as to who is being allowed to participate in
which conformity assessment procedures.  The concept in the TBT Agreement is that
conformity assessment bodies located in the territories of other Members would be allowed to
participate in Oman's conformity assessment procedures.  We suggest the following changes:WT/ACC/OMN/22
Page 14
5.3   The conformity assessment bodies located in the territories of other Members are
permitted to participate in the Directorate’s  their  conformity assessment procedures
under conditions no less favourable than th ose accorded to bodies located in the
Sultanate or the territory of any other country.
In addition, the Decree completely omits Articles 2.6, 2.7, 2.8, 5.5, and 10.1.2 of the Agreement." TBT Agreement Article 2.6 encourages participation in international standards
development work for products for which the Memb er already has, or expects to have, technical
regulations.
" Similarly, Article 5.5 encourages participat ion in the development of guides and
recommendations for conformity assessment procedures.
" Article 2.7 of the Agreement refers to the recognition of other Members' technical
regulations as equivalent, even if they di ffer from Oman's regulations, provided they
adequately fulfill the objectives of Oman's regulations.
" Article 2.8 says that "wherever appropriate, Members shall specify technical regulations
based on product requirements in terms of performance rather than design or
descriptive characteristics ".
" Under Article 10.1.2., the inquiry point will provide information on standards (in
addition to technical regulations and conformity assessment procedures).
Oman should include these points in its legal framework to implement the WTO TBT
Agreement.
Reply:
A revised draft Ministerial Decree on TBT, inco rporating the comments on the earlier Decree,
has been prepared and a copy of it is being submitted to the WTO Secretariat.
Question 18.
Are the GCC joint standards referred to in paragraph 85 of WT/ACC/SPEC/OMN/7
considered to be mandatory standards?  Previously, Working Party members have requested
that Oman list all imports, by HS line item, subject to mandatory standards.  If these aremandatory standards, we request that Oman pr ovide a chart listing the products covered, and
we request that the chart be incorporated in the Working Party report.
Reply:
The list of mandatory standards has been pr ovided to the Secretariat (WT/ACC/OMN/21).
Question 19.
Concerning shelf life requirements for imports, we have been discussing this issue bilaterally
with Oman and we have noted that we believe that mandatory shelf-life standards on "shelf-
stable-foods" are not justified under WTO Agreements on SPS and TBT.
In addition, we have observed that under th e WHO/FAO Food Standards Program, regulations
and procedures could be established in line with international norms for "highly perishableWT/ACC/OMN/22
Page 15
refrigerated" food products that could graduall y replace shelf life requirements with a scientific
regulatory framework, e.g., within a year.
We believe that the shelf life issue should be re solved in the context of implementation of the
WTO Agreements on TBT and SPS.  We propose the following approach to bringing Oman’sshelf life requirements into line with the WTO Agreements on SPS and TBT:
- First, mandatory government-imposed shelf- life standards for all "shelf-stable foods"
should be eliminated prior to the date of accession.
- Second, drawing on technical advice from the WHO/FAO Food Standards Program,
Oman would establish regulations and procedures in line with international norms for"highly perishable refrigerated" food products.  This could be accomplished within a
year.
- To recapitulate: our proposal is that mandato ry shelf-life standards for "shelf-stable
foods" should be eliminated immediately and existing mandatory shelf-life standards for
"highly perishable refrigerated" food products  should be eliminated within one year and
replaced with a science-based regulatory framework.
We await the circulation of the draft Ministerial Decrees on TBT and SPS so that we may
evaluate Oman’s implementation of WTO provisions in these areas.
We also seek incorporation of the following mate rial in the Working Party report reflecting our
perspective in the draft Working Party report:
xx.  One member observed that Oman’s regulations on shelf-life did not conform
with international norms and are inconsistent with the provisions of the SPS and
TBT Agreements that require the use of sound science to establish such
requirements.  The food safety risk that can be prevented with mandatory shelf-
life dates has not been specified, nor has it been demonstrated what impact non-
fulfilment, i.e. the absence of a shelf-life date, would have.  The practice of
mandatory shelf life dates has been defended as helping government authorities
to prescribe maximum storage periods for food products, and to inform theconsumer when key quality attributes are at their optimum levels in the product
(i.e., nutritional values and product characteristics).  SPS Agreement provisions,
however, pertain to the protection of human, animal or plant life or health, not
quality or consumer information requirements.
xx.  The member also maintained that the imposition of mandatory shelf-life
terms on an arbitrary, across the board basis on numerous products is not an
appropriate solution to the concerns expressed, and emphasized that it is in the
interest of both the exporter and the impo rter to assure that there is sufficient
shelf-life remaining on imported produc ts so that they may be purchased and
consumed within the optimum quality pe riod.  This member expressed the view
that an arbitrary requirement for half the shelf-life, enforced by the
government, was not a useful way to address this concern.  He suggested that
mandatory shelf-life dating should be el iminated for “shelf-stable foods”, in the
context of adopting the Ministerial D ecrees that will implement the WTO TBT
and SPS Agreements in Oman, and that regulations and procedures be
established in line with international no rms for "highly perishable refrigerated"
food products to gradually replace these requirements with a scientific
regulatory framework, e.g., within a year.WT/ACC/OMN/22
Page 16
We also propose the following commitment for draft Working Party report:
xx. The representative of Oman confirmed his Government’s intention to eliminate
mandatory shelf-life standards for "shelf-stable foods" upon accession.  He added that
Oman would establish within one year regulations and procedures in line withinternational norms for "highly perishable refrigerated" food products and to gradually
replace remaining shelf life requirements on th ese products with a scientific regulatory
framework by 31 December 2000.  The Working Party took note of these commitments.
We appreciate Oman’s incorporation of the commitments in paragraphs 89 and 94 of
WT/ACC/SPEC/OMN/7.
Reply:
The proposed paragraphs are acceptable.
Question 20.
Oman was requested to indicate how it intends to revise its shelf-life provisions.  We look
forward to a strong commitment that Oman will be revising its shelf life provisions to be in line
with international standards under Codex.
Reply:
Please see the reply to question 19.
Question 21.
We support the request that Oman provide a list of imports subject to approval or mandatory
certification requirements on the basis of technical or sanitary requirements.
Reply:
The list of mandatory standards has been pr ovided to the Secretariat (WT/ACC/OMN/21).
Question 22.
It is noted that Oman is only a member of FAO,  WHO and OIE.  Does Oman plan to join the
other two very important standard setting organizations of Codex Alimentarius andInternational Plant Protection Convention (IPPC)?
Reply:
Oman has already joined the International Plant Protection Convention (IPPC), and is a
correspondent member of Codex Alimentarius.
Question 23.
What is meant by:  "[w]here no specific standards existed, imported food products would be
subject to safety tests…".  To what standards would the products be judged to meet or not meet
if there are no standards to measure the test results against?WT/ACC/OMN/22
Page 17
Reply:
The appropriate measures of food safety like the approved permissible limits of the food
additives, residues of veterinary drugs, pesticides and contaminants----etc., w ill be based to the
specific Codex Alimentarius Standards.
(l) Government procurement practices
Question 24.We appreciate Oman’s statement that it would become an observer to the Agreement on
Government Procurement (GPA).  We also retain  our request for Oman to initiate negotiations
to accede to the GPA, as follows:
108.  The representative of Oman confirmed that, upon accession to the WTO,
Oman would initiate negotiations for membership in the Agreement in
Government Procurement by tabling an enti ty offer.  He also confirmed that, if
the results of the negotiations were satisfactory to the interests of Oman and the
other members of the Agreement, Oman would complete negotiations for
membership in the Agreemen t within a year of accession.  The Working Party
took note of these commitments.
Reply:
Oman can accept the commitment language in paragraph 108.
4. Policies affecting foreign trade in agricultural products
We reserve the right to review this section in  light of the outcome of discussions on Oman’s
commitments on domestic agricultural support levels and use of agricultural export subsidies.
Trade in Civil AircraftQuestion 25.Oman stated at the October Working Party meet ing that it was committed, in principle, to
joining the agreement.  We understood that view  from our earlier bilateral discussions, and
fashioned the proposed commitment text to reflect the balance discussed between Oman’s
intentions and the need for a specific timeline fo r those intentions to be realized.  We seek the
following commitment:
114bis.     The representative of Om an stated that, in order to become
acquainted with the agreement, it will become an observer in the agreement
upon accession and will join within 3 years of accession, or at the time iteliminates tariff duties on imports of aircraft or aircraft parts for any member
of the Agreement on a preferential basis, whichever comes first.  The Working
Party took note of these commitments.
Reply:
Oman accepts the proposed language for paragraph 114bis.WT/ACC/OMN/22
Page 18
V. TRADE-RELATED INTELLECTUAL PROPERTY RÉGIME
Question 26.We have received the translations of the GCC Patent Law, regulations, Office charter, and fee
structure, in addition to WIPO comments.  These were reviewed by our IPR experts and we
have specific comments and a formal proposal on implementation of the patent provisions of the
TRIPS Agreement.  In order for Oman to meet  TRIPS requirements, Oman must demonstrate
that the GCC or other designated office (a) is functional and can process and issue patents;  (b)
uses WTO-consistent regulations that are rec ognized in Oman as governing the availability,
issuance, maintenance and scope of Omani pate nts consistent with Oman’s WTO obligations;
and (c) that these patents are enforceable in Oman under the general enforcement provisions in
Part III of the WTO TRIPS Agreement, which Oman implements in law.
These are the absolute minimum requirements for the near term implementation of the Patent
Provisions of the TRIPS Agreement by Oman.  We note that without the enforcement
provisions of Part III in Oman law, Oman is also  lacking in implementation of the other parts of
the Agreement.
Proposal:  We believe that Oman’s use of the GCC patent office and law to meet its obligations
under the WTO TRIPS Agreement could work, provided that the following actions are taken,
and provided that clarification can be provided on the additional points attached:
- That the GCC patent office will be a functioning patent office that will grant patents.  It
is noted in a statement by the representative of  the GCC Patent Office at the recent U.S.-GCC
Economic Dialogue meeting, October 18, that the current GCC patent office has received ~350
patent applications.  As a functioning GCC patent system is critical to the Omani’s compliancewith the TRIPS patent requirements, it is important that the GCC be a functioning system that
actually grants patents to applicants desiring to obtain patent protection in Oman;
- That the following actions are taken to inco rporate GCC patent provisions into Oman’s
legal structure:
" That at the time the amended GCC Patent Law is promulgated as Oman’s Patent
provisions, the promulgation also designates either the UAE Patent Office in Abu Dhabi
or the GCC Patent Office in Riyadh as its official patent office both for the issuing and
examining patents for Oman;
" That simultaneously a Ministerial Decree would be issued confirming officially that the
patents issued by the GCC (or UAE) offi ce would be recognized and enforceable in
Oman and that the substantive provisions of the GCC patent law would govern the
scope of such patents;
" That in adopting the enforcement provisions of the WTO TRIPS Agreement, Oman
would implement Part III of Agreement in la w making it clear that they would apply in
Oman to the patents issued by the GCC (or UAE) office; and
" That as a member of the Paris Convention, Oman would join the Patent Cooperation
Treaty (under the auspices of the World Intellectual Property Organization), whichwould allow foreign inventors to file an international application which would be
examined in another country’s patent offi ce, e.g., that of the US, EU, or Japan, and
which would work with the GCC (or UAE. office) to issue patents valid in Oman based
upon the search/examination reports generated in the PCT international application.WT/ACC/OMN/22
Page 19
- That the following comments concerning the TRIPS-consistency of the draft amended
GCC patent law are addressed and clarified in the context of Oman’s WTO accession;
" Article 2/1 – The “not conflicting with … codes in the GCC states either in regard to
industrial products, or manufacturing methods or operations” clause of this provisionraises some question as to whether Oman/GCC will provided patent protection for the
full range of patentable subject matter as required by TRIPS Article 27, especially the
last proviso of TRIPS Article 27(2).
" Article 3/1/2 – The exclusions from patentab ility, especially that for business methods, in
this provision go beyond those permitted by TRIPS Article 27.
" Article 12/1 and Article 13 – The local working requirements of these provisions run
afoul of the TRIPS Article 27(1) non-discrimination provision on importation/local
working.  The relevant provisions of the GCC law should clearly state that local working
is satisfied by importation.
" Article 18 – The "required amendment" to voluntary licenses that may be based upon
the need of the GCC states to acquire and disseminate technology may run afoul of
TRIPS Article 31, to the extent that such a "required amendment" may constitute a
compulsory license.
" Article 19 -22 – These provisions on compulsory licenses incorporate many of the TRIPS
Article 31 conditions on the grant of such li censes.  However, all of the TRIPS conditions
are not included in these provisions.  Specifically, the conditions in TRIPS Article 31,
paragraphs (a), (i), (j), and (l) (ii) and (iii) are not accommodated.  Article 21 of the GCC
law is addressed to dependent patent compulsory licenses which are the subject ofparagraph (l) of TRIPS Article 31.  The "either or both" provision in Article 21 may
run afoul of the requirement in paragraph (l)(ii) of TRIPS Article 31 as cross-licensing
may be required.  Paragraph (1)(iii) of TRIPS Article 31 finds no equivalent in GCC
Article 21.  If the appeal provisions of Articles 24 –25 of the GCC law are intended to
apply to the grant of compulsory licenses a nd this is clarified by GCC/Oman, then any
deficiencies relating to paragraphs (i) and (j) of TRIPS Article 31 may be mitigated.
" Article 31 – Because Oman must comply with all of the TRIPS requirements as of
1 January 2000 and they enjoy no exemptions under TRIPS Article 65(4), this provision
should not apply to Oman.  We seek Oman’s confirmation that this provision does not
apply to Oman and assurance that Oman will provide patent protection for all fields of
technology as of 1 January 2000.
"   Enforcement – The enforcement provisions of Part III of TRIPS, as those provisions
relate to patents, must be given effect in Oman as of the date of accession.  The
indication given by Oman at the 1 October informal Working Party meeting that
enforcement may be available "sometime in 2000" does not meet this obligation.Further, the stated availability of enforc ement outside of statutory enforcement, as
outlined at that meeting, is insufficient  as there is no assurance such "de facto"
enforcement would be in accordance with the TRIPS requirements.
We remain ready to work with Oman to complete this part of the negotiation, but we need
technical level engagement to complete work on this part of the accession negotiations.WT/ACC/OMN/22
Page 20
Reply:
A draft Decree on Patents has been prepared which takes care, inter alia, of the points made in
the question.  A copy of the draft Decree is being sent to the WTO Secretariat.
Question 27.
With regard to patents, the scope of rights stated  in Oman's domestic law should also be defined
in the relevant paragraphs of the Working Party Report.
Reply:
Oman agrees to this.
Question 28.
Under the current regime, the terms for a patent are valid over a period of 15 years as of the
date of granting.  This practice is inconsistent with Article 33 of the TRIPS Agreement as such
validity can be extended with a view to complying with Article 33 on the condition that the
owner of the patent shall make a request for extension within the last 90 days of the original
term.
Thus, in some cases, it is possible for the term of  protection to be secured for less than 20 years
without fulfilling the requirements prescrib ed in Article 33 of the TRIPS Agreement.
Reply:
The situation has been rectified in the draft Decree on patents wherein the term of patent is
20 years.
Question 29.
We understand that Oman considered becoming a member of the Paris Convention for the
Protection of Industrial Property, which relates to patents, trademarks and unfair competition.Has Oman joined?
If so, has Oman contemplated joining the Pate nt Cooperation Treaty (PCT)?.  That Treaty,
which is open to members of the Paris Convention , provides that some Patent operations can be
undertaken by other Patent Offices.
Reply:
Oman has already become a member of the Pari s Convention.  It would consider joining the
Patent Co-operation Treaty when it is finalised.
Question 30.
Please provide a status report on Oman’s effort s to revise its IPR laws and implement the WTO
TRIPS Agreement.
Reply:
Oman has already prepared draft Decrees in the following areas, copies of which are being
submitted to the WTO Secretariat:WT/ACC/OMN/22
Page 21
- Trade Marks;
- Copyrights;
- Patents;
- Industrial Designs;
- Plant Varieties;
- Geographical Indications;
- Layout – Designs of Integrated Circuits;
- Protection of Undisclosed Information;
- Control of Anti – Competitive Practices;  and
- Enforcement of IPR’s.
The Decrees will be promulgated after we receive comments from WTO Members.
Question 31.
Please confirm that Oman is prepared to implement TRIPS upon accession.We propose that Oman amend paragraph 123 and 124 to accept the following commitment as
paragraph 124bis:
124bis.   The representative of Oman stat ed that Oman would fully apply all the
provisions of the Agreement on Trade-Related Aspects of Intellectual Property
Rights from the date of its accession to the WTO, without recourse to any
transitional period.  The Working Party took note of this commitment.
We will review any revised proposals to address the need to implement the Patent provisions of
the TRIPS agreement, and hope that we can resolve this issue expeditiously.
Reply:
Oman confines that it is prepared to implement the TRIPS Agreement upon accession.
Proposed paragraph 124 bis is acceptable.
Transparency
Publication of information on trade
Question 32.We appreciate Oman’s statements in paragraphs 132 and 133, and the commitment in
paragraph 134 on notifications of WT/ACC/SPEC/OMN/7.
We still seek reference in the Working Party repor t on Oman’s legislative basis for meeting the
transparency requirements of Article X of the GATT and other provisions of the WTO.
Reply:
The legal citation for reference in the Working Party report on Oman's legislative basis for
meeting the transparency requirements of Article X of the GATT and other provisions of the WTO is
Article 74, Chapter Seven of Sultani Decree No. (101/96) promulgating the Basic Statute of the Statewhich stipulates that "The Laws shall be published in the official Gazette within two weeks from the
day of their issue.  They shall come into force on the date of their publication, unless another date is
specified."WT/ACC/OMN/22
Page 22
Notifications
Question 33.While we appreciate Oman's commitment on notifications, we do not believe it corresponds to
Oman’s statement at the last Working Party co ncerning delays in promulgation of specific
legislation.  Since most notifications are of fi nal legal instruments, we seek Oman’s review of
this commitment and consultation with the WTO S ecretariat to work out in detail a schedule for
these notifications, like the one contained in WT/ACC/SPEC/MOL/6, with a view to ensuring
that all initial notifications will be available.
Reply:
We accept the amended commitment in para 144 as follows:
"The representative of Oman said that, Oman would submit all initial notifications required
by any Agreement constituting part of the WTO Agreement according to the schedule in table
X attached to this report.  Any regulations subsequently enacted by Oman which gave effect
to the laws enacted to implement any Agreement constituting part of the WTO Agreement
would also conform to the requirement of that  Agreement.  The Working Party took note of
this agreement."
Trade agreements
Question 34.Has the GCC ever been notified to or exam ined by the Committee on Regional Trade
Arrangements?   Will Oman notify the Arab League Free Trade Area and the GCC Customs
Union to the respective Councils on Trade in Goods and Trade in Services, as appropriate?
We appreciate Oman’s statement in paragraph 139 of WT/ACC/SPEC/OMN/7.  We seek
Oman’s specific statement as to what it intends to do to meet this commitment after accession.
Reply:
Oman will definitely notify the Arab League Free Trade Area and the GCC Customs Union to
the respective Councils.
After accession, it will work with its trading partners to ensure that regional trading
arrangements, of which Oman is member, conform to the provisions of Article XXIV of GATT 94
and Article V of the GATS.
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