Senegal WT/TPR/S/119
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III. TRADE POLICIES BY MEASURE
(1) OVERVIEW
(i) Import measures
1. Since Senegal first appeared before the Trade Policy Review Body (TPRB), the Senegalese
authorities have liberalized trade policy, first of all through the post-devaluation economic programme
and then through the West African Economic and Monetary Union (WAEMU).  Quantitative importrestrictions have been abolished, together with monopolies on imports of broken rice and petroleum
(pharmaceutical products are still subject to State trading).  Tariffs have been simplified and
dispersion of duties has been lessened by introducing the WAEMU's Common External Tariff (CET).
As a result, the simple average of customs duties actually applied was lowered from 37 per cent in
1994 to 14.7 per cent in 2002;  the CET for agricultural products may nevertheless be increased withthe introduction of the WAEMU’s common agricultural policy (Chapter IV(2)(ii)).
2. Trade-related constraints include the “reference values” for more than 29 products (the
subject of a waiver request (Chapter II(4)(i)));  the permanent supplementary duties of the WAEMU
and the ECOWAS, which are imposed only on imports from third countries;  the special import tax
(TCI) on imports of sugar, groundnut oil, soyabean and colza oil, and wheat flour from thirdcountries;  and “temporary surcharges” on imports of onions, cigarettes, potatoes, bananas, millet and
sorghum of any origin, for which no timetable for elimination has yet been determined.  A statistical
charge and a levy that goes to the Senegalese  Loaders’ Council (COSEC) are levied on an ad valorem
basis.  The combined effect of MFN customs duties, supplementary duties and surcharges means that
the tariff levels (customs duties) bound for certain agricultural products are exceeded, even though the
authorities consider that they are entitled to apply a full margin of protection to agricultural products
of up to 180 per cent (Chapter II(4)(i)).  Senegal still imposes protection through tariff and/or non-tariff measures on agro-food industries, in particular the production of condensed milk, refining of
edible vegetable oil, and the production of single tomato concentrate.  These constitute the
population’s basic foodstuffs, so protection de creases the purchasing power of households.
3. Duty-free entry only applies to around one th ird of the WAEMU’s intra-community trade.
1
Local products and traditional crafts enter completely free of duty, together with a limited number of
industrial products produced by enterprises approved by the WAEMU Commission.  As of 2006, all
approvals should in principle be the responsibility of national authorities.  Intra-community trade has
also benefited from the harmonization of domestic legislation on excise duty and VAT.  It should be
noted that the limitations on free trade within the WAEMU limit the potential benefits of the latter’s
establishment for member countries and third countries.
(ii) Export measures
4. Since it first appeared before the TPRB in 1994, Senegal has abolished the quantitative export
restrictions and export subsidies noted at that time.  No products are subject to export duties and all
are exempt from VAT.  Regarding export subsidies, it should be noted that the free export enterprise
regime, introduced in 1996, gives fiscal benefits to enterprises 80 per cent of whose turnover comesfrom exports (instead of the 60 per cent in the Dakar Industrial Free-Trade Zone), in particular
fisheries.
                                                     
1 IMF (2001b).WT/TPR/S/119 Trade Policy Review
Page 34
(iii) Domestic measures
5. Senegal has undertaken a number of reforms in order to improve the legal institutional and
economic framework for enterprises setting up in Senegal.  It has joined the Organization for the
Harmonization of Business Law in Africa (OHADA) and has improved the climate for investors
through the creation of the APIX in July 2000.
6. Senegal has ratified the revised Bangui Agreement (1999), which guarantees convergence
between the intellectual property protection regime of its members and WTO obligations under the
TRIPS Agreement.  As a least-developed country (LDC), Senegal has an additional period until 2006
for full implementation of the TRIPS Agreement.  In view of Senegal’s significant artistic and cultural
heritage, the authorities are actively combating piracy on the domestic market, using the resources at
their disposal.
7. Since the economic reform programme began in 1994, Senegal has freed certain controlled
prices, but others remain in effect (for hydrocarbons, medical services and pharmaceutical products).
Since early 2003, the policy on competition in the domestic market has been governed by WAEMU
regulations covering anti-competitive practices and State aid;  these provisions have not yet been
applied in Senegal.
8. Senegal has completely revised its government procurement policy following the adoption of
a new Government Procurement Code in May 2002, which nevertheless still gives preference to
domestic enterprises.  The new Code simplifies procedures, ensures greater transparency, rapidity and
efficacy of procedures, provides new dispute settlement procedures and new sanctions for offences
committed in the course of tendering for or executing government procurement contracts.
(2) MEASURES DIRECTLY AFFECTING IMPORTS
(i) Registration
9. When Senegal first appeared before the TPRB in 1994, the exercise of industrial, crafts or
commercial professions was subject to a prior declaration or authorization;  this requirement was
abolished in 1994 as part of the post-devaluation economic programme and there is now free access to
economic activities2, while the prior authorization regime only applies on an exceptional basis.3
Nevertheless, natural or legal persons engaged in international trade must possess an import-export
card4, which has to be renewed every four years.  Because it represents a potential obstacle to trade,
the Senegalese authorities are considering doing away with this requirement in the process of
simplifying foreign trade procedures.
                                                     
2 Law No. 94-69 of 22 August 1994.
3 Law No. 94-67 of 22 August 1994 and Decree No. 95-132 of 1 February 1995.
4 Article 78 of the Customs Code (1987).  Applications for cards must include the following
documents:  an information sheet purchased from the Chamber of Commerce;  a certified photocopy of the
trader's card or entry in the Commercial Register;  a cer tified photocopy of registration with the National Centre
for the Identification of Enterprises and Associations (NIN EA);  two identity photos for natural persons;  the
articles of association and list of principal shareholders for legal persons;  a CFAF 10,000 revenue stamp;  andCFAF 8,000 in cash to cover the cost of scanning the import-export card.Senegal WT/TPR/S/119
Page 35
(ii) Customs procedures
10. Senegal’s Customs Code (1987)5 still applies, except for the provisions contrary to those in
the WAEMU Customs Code, Book I of which came into effect on 1 January 2003.6  The latter covers
the organizational framework and customs procedures and regimes.  It concerns imports and exports
of goods in WAEMU member States.  The WAEMU Customs Code is administered by the customs
authorities of the WAEMU’s member States in addition to their national customs codes.
11. According to Titles IV and V of the WAEMU Customs Code, all goods presented to the
customs must be the subject of a summary declarat ion, followed by a detailed declaration, unless the
latter has been submitted prior to the entry of the goods.  The WAEMU Commission has yet to adopt
a regulation specifying the format of the detailed declaration and the documents to be attached.
Consequently, the regulations established by the Senegalese Director General of Customs, inaccordance with the provisions of the 1987 Customs Code, remain in effect.
12. The detailed declaration must be made in writing, orally, or in electronic form (Computerized
Processing of Customs and Trade Information ( GAINDE), introduced in 1990);  on average, 90 to
95 per cent of the declarations are submitted in electronic form.  The declaration can only be made by
a customs agent, which was also the case when Senegal first appeared before the TPRB in 1994.
7
13. The detailed declaration must include the usual data used to determine customs value or,
where appropriate, the “reference value” (see below).  The customs procedure requested is either
definitive (import or export) or suspensive (transit, warehousing, industrial storage, plant supervised
by the customs (production under customs control), temporary admission, prior export (drawback), or
temporary export).  Goods under suspensive procedures are mainly in transit to the countries east of
Senegal and to the Dakar Industrial Free-Trade Zone.  Goods transported under customs control or
under a suspensive customs procedure must be covered by a bond note.
14. Detailed declarations must be accompanied by the following documents:
- Invoices;
- licences and all other titles or documents specified in the regulations on prohibitions
and foreign trade and exchange controls;
- all documents required by the customs authorities for the application of customs laws
and regulations (certificates of origin, movement or release certificates, temporary
admission authorization, evidence of exportation, inspection certificate, etc.);
- all documents required by the customs services for the application of special laws and
regulations (hygiene, public health, protection of animals and plants against disease,
quality controls or packaging);
- all documents required for the application of regulations or decisions under the ACP-
EU Partnership Agreement at import or export;  and
                                                     
5 Law No. 87-47 of 28 December 1987.
6 Regulation No. 09/2001/CM/UEMOA.
7 Articles 71 to 77 of the Customs Code (1987). See also Article 80 of the WAEMU Customs Code.WT/TPR/S/119 Trade Policy Review
Page 36
- all documents authorizing the application of a special tariff regime (administrative
decisions, supply or works contracts, etc.).
15. Registration of the detailed declaration may be followed by inspection of the goods by the
customs authorities.  In 1991, Senegal introduced an import verification programme (PVI) and this
was notified to the WTO.8  The purpose of the PVI is to exercise stricter control over customs
revenue, which on average accounts for 35 to 40 per cent of fiscal revenue, by providing information
on the value of goods imported and giving the customs service a tool to combat illegal imports.  The
authorities evaluate the programme each year before renewing it.  Its abolition is not yet on the
agenda.
16. Imports of an f.o.b. value exceeding CFAF 1 million require a prior import declaration (DPI)
issued by the COTECNA company, which has been responsible for the PVI since 1 October 2001
following a call for tenders.  In the case of containers and imports exceeding the CFAF 3 million
threshold, preshipment inspection is compulsory, except where the tariff heading is exempt.9  After
inspecting the goods, COTECNA issues an inspectio n certificate (or “a notice of refusal to issue a
certificate”), which the importers attach to their customs clearance documentation.
17. The detailed declaration and the inspection of goods determine the customs value (see below),
which is the basis for estimating the amount of duties and taxes payable on the import operation.  The
goods may not be cleared until all the duties and taxes have been paid and a receipt has been issued,
except if there is a clearance credit or a duties and taxes credit.10
(iii) Customs valuation
18. In 1999, the WAEMU adopted regulations to allow its member States to apply the Agreement
on Implementation of Article VII of the GATT 1994 (“Customs Valuation Agreement”).11  Senegal
indicates that it has implemented the Agreement since 1 July 2001 and has notified the members of
the WTO accordingly (Chapter II(4)(i)).  The WAEMU regulations contain all the provisions in the
WTO Agreement.  The main basis of customs valuation is thus the transaction value, plus certain
adjustments, which are defined in Article 8 of the WTO Agreement.  As regards disagreements
concerning the value of goods, these must in the first instance be brought before the nationaladministrative body responsible for resolving customs disputes, but may subsequently be brought
before the judicial authorities.  The WAEMU Customs Code specifies that issues relating to
classification are dealt with by the WAEMU Commission in order to ensure homogeneity in this
respect within the WAEMU.  The WAEMU regulations repeat the substance of the “Decision
Regarding Cases Where Customs Administrations Have Reasons to Doubt the Truth or Accuracy ofthe Declared Value”, which forms part of the Marrakesh Agreement.
12
                                                     
8 WTO document G/PSI/N/1/Add.4 of 9 October 1996.  This is covered by Decree No. 91-1221 of
14 November 1991, whose implementing procedures are determined in Order No. 1110/MEFP/MDB of25 February 1997.  The programme was suspended between February and September 2001 because the contractwith the companies concerned (SGS and Veritas) had expired.
9 For example, automobiles (Chapter 87), with the exception of new spare parts.
10 Pursuant to Article 99 of the Customs Code (1987), importers may present for payment duly secured
bonds, with a maximum expiry date of four months, but this is not allowed when the amount to be paid is lessthan CFAF 1 million.
11 Regulation No. 5/99/CM/UEMOA.
12 Article 16 of Regulation No. 5/99/CM/UEMOA.Senegal WT/TPR/S/119
Page 37
19. The WAEMU has also adopted a community system of reference values with the aim of
"combating false declarations of value and unfair competition".13  The member States of the WAEMU
propose to the WAEMU Commission items to appear on a list of goods subject to reference values,
which is updated every six months.  The list obtained by the WTO Secretariat, which dates from
11 March 2002, is composed of thousands of tariff headings.  The WAEMU member States draw up
national lists and designate reference values, which are used to determine the basis for calculatingduties and taxes.  This system does not apply to good originating outside the WAEMU.
20. With a few exceptions, Senegal's national list (Table AIII.1) corresponds to that in the
documentation circulated to the WTO Members in relation to the request for a waiver made on
5 June 2002 (Chapter II(4)(i)) for the purpose of using reference values until June 2005.
14  Products
included in the list are generally subject to relatively high tariff or non-tariff protection in order toprotect domestic industry.  For example, a minimu m price of CFAF 510/kg is indicated for refined
vegetable oil, which is also subject to 20 per cent tariff protection under the CET, supplementary
duties of 2.5 per cent, a TCI of 10 per cent (except for groundnut oil), an excise duty of 15 per cent
(except for groundnut oil), and VAT of 18 per cent.  Condensed milk is another product on Senegal's
list that should be noted because it was already subject to an official value when Senegal firstappeared before the TPRB.
15
(iv) Customs levies
(a) Senegalese tariffs
Most-favoured-nation (MFN) tariffs (customs duties)
21. Senegal’s tariff has been wholly based on the WAEMU’s CET since 25 July 2002.16  T h e
CET groups products into four major categories of customs duties (Table III.1):  0 per cent; 5 percent; 10 per cent; and 20 per cent.  Currently, all 5,546 10-digit tariff lines in Senegal’s tariff are
defined in the WAEMU’s common tariff and statistical nomenclature, based on the 2002 version of
the Harmonized Commodity Description and Codi ng System (HS).  The simple average of
MFN customs duties is 12.1 per cent (Table AIII.2).
                                                     
13 Article 2 of Regulation No. 4/99/CM/UEMOA.
14 WTO document G/C/W/390 of 26 June 2002.
15 GATT (1994), Volume 1, Table AIV.2.
16 Prior to this, Senegal’s tariff differed from the CET in three respects:  786 headings in Senegal’s
tariff had no counterpart in the CET;  151 headings in the CET did not appear in Senegal’s tariff;  and 146
headings in Senegal’s tariff were no t classified in accordance with the CET.WT/TPR/S/119 Trade Policy Review
Page 38
Table III.1
Breakdown of MFN and bound tariffs, 2002
Rate applied (excluding supplementary
import taxes)Bound rate
Frequency Percentage Frequency Percentage
Duty free 72 1.3 0 0
52 , 0 8 5 3 7 . 6 0 0
10 1,107 20.0 0 0
15 0 0 13 0.2
20 2,281 41.1 0 0
22.5 0 0.0 2 0
30 0 0.0 5,531 99.8
Note: 1. The tariff comprises 5,546 10-digit lines.
2. The rates calculated in this Table refer to MFN customs duties, to which must be added the supplementary taxes/duties and,where applicable, a surcharge, in order to obtain the rate actually applied.
Source:  WTO Secretariat calculations based on data provided by the Senegalese authorities.
Tariff actually applied
22. In addition to MFN customs duties, goods not originating in the WAEMU are subject to
several additional duties:  the WAEMU statistical charge (RS) at a rate of 1 per cent17, the community
solidarity levy (PCS) of the WAEMU, at a rate of 1 per cent18, and the ECOWAS community
solidarity levy (PCS) at a rate of 0.5 per cent.  It should also be noted that 0.2 per cent is levied for theSenegalese Loaders’ Council (COSEC).  The basis for all these additional duties and levies is the
customs value.
23. Some products imported into Senegal, includ ing those of WAEMU or ECOWAS origin, are
also subject to additional taxation without any counte rpart at the domestic level, for which the basis is
the customs value.  This concerns a “temporary surcharge” of 20 per cent on imports of onions,cigarettes, potatoes and bananas and a 10 per cent surcharge on some cereal products such as millet
and sorghum.  Some of these surcharges were introduced in 1995 in order to give certain industrial
branches a period of adaptation in order to be bett er prepared for the opening up to competition in the
context of the post-devaluation economic programme.
19  For the moment, no timetable has yet been
fixed for the abolition of these temporary surcharges, even though the Senegalese authorities intend toabolish them.
24. The Senegalese customs authorities have also informed the WTO Secretariat of the livestock
fund levy, which is imposed on imported goods and has no counterpart at the domestic level:
CFAF 100/kg for bovine, sheep and poultry meat; CFAF 50/kg for pig meat.
20  A 1 per cent tax is
                                                     
17 The following are exempt: goods acquired under financing arrangements with foreign partners,
subject to a specific clause on exemption from any fis cal or parafiscal levy;  and goods imported in accordance
with diplomatic privileges (Regulation No. 2/2002/CM/UEMOA).
18 Additional Act No. 4/96.
19 Law No. 95-04 of 5 January 1995.  The products affected are onions, potatoes, bananas, tomato
concentrate, vegetable oil, bananas, polypropylene bags, grey Portland cement and wheat flour.  The degressiveand temporary nature of the measure has been respect ed as regards tomato co ncentrate, vegetable oil,
polypropylene bags, grey Portland cement and wheat flour.
20 Decree No. 89-454 of 13 April 1989.Senegal WT/TPR/S/119
Page 39
payable on imported fabrics, without any counterpart at the domestic level, for which the basis is the
customs value; this tax already existed at the time of Senegal’s first trade policy review.21
25. Senegal has also introduced a special import tax (TCI) on imports of sugar, refined vegetable
oil and wheat flour from third countries.  The TCI is a nationally-applied protection mechanism
established by the WAEMU and is imposed on agricultural, agro-industrial, livestock and fisheries
products, with the exception of fish and fish products;  it is not planned to abolish it.22  The purpose of
the TCI is to mitigate the effects of erratic fluctuations in international prices of certain products on
community production and to counteract unfair practices.  It is imposed on products imported from
third countries in two ways:  10 per cent of the trigger price or by equalization.23  Senegal applies
equalization under the TCI for sugar, but it is only used for sugar for daily consumption, whereas a
TCI of 10 per cent applies to groundnut, soyabean and colza oils and wheat flour.  The mechanismmay also be introduced for other products.  Currently Senegal is under pressure to introduce the TCI
on imports of footwear (particularly plastic footwear ), cosmetics, biscuits, sweets, matches, milk and
tea.
26. In the past, Senegal also imposed a degressive protection tax (TDP) on imported cigarettes,
but the Senegalese authorities state that the TDP has never actually been applied.  It is a nationallyapplied protection mechanism established by the WAEMU
24, which should have expired on
31 December 2002 but has been renewed until 31 December 2003.25
27. The combined effect of applying MFN customs duties, supplementary duties (RS and PCS)
and import surcharges increases the simple average of the duties actually applied.  The WTO
Secretariat has calculated a simple average of 14.7 per cent if all the MFN duties and additional ad
valorem  duties are taken into account (Table III.2).  The impact of the surcharges is particularly
noticeable in the simple average for agricultural products (WTO definition).26
                                                     
21 GATT (1994), Volume I, Chapter IV(2)(iii)(a).
22 Annex No. 2 to Regulation No. 6/99/CM/UEMOA on adoption of the TCI lists the following
products on which the TCI is imposed: bovine meat;  edible poultry meat and offal under NO 01 05;  condensed
milk;  potatoes;  onions;  bananas;  maize;  rice;  sorghum;  millet;  wheat flour;  unrefined vegetable oil;
refined vegetable oil;  sugar;  tomato concentrate;  cigarettes and cigarillos.
23 The TCI is applied in two different ways: if the customs value is lower than the trigger price
(threshold price) set by the WAEMU Commission, the TCI is imposed at a rate of 10 per cent of the valuecalculated as from the trigger price.  For this purpose, the duties and taxables payable apply to the same trigger
price (the trigger price is calculated according to th e following formula: PD = (0.3*CM + 0.7*CPI) with PD
being the trigger price;  CM = the global price of the product;  and CPI = cost of domestic production of the
product.  On the other hand, if the price of the product is guaranteed on foreign markets (as is the case forsugar), member States may decide to opt for equalizatio n, for which the amount is composed of the difference
between the value determined as from the trigger price, on the one hand, and, on the other, the c.i.f. valuedetermined on the basis of the spot price.  For product s at guaranteed prices, the trigger price is calculated as
follows:  PD = ((PGUE+PGUSA+PMS)/3 + FA), where PD  = trigger price;  PGUE = guaranteed European
Union price;  PGUSA = guaranteed United States of America price;  PMS = spot market price;  and
FA = shipping costs.  The current trigger prices per tonne fixed by the WAEMU Commission are currently:CFAF 261,464 for granulated brown sugar, CFAF 321,464 for brown sugar in lumps, CFAF 325,056 forgranulated white sugar, and CFAF 385,059 for white sugar in lumps.
24 Regulation No. 3/1999/CM/UEMOA.
25 Regulation No. 25/2002/CM/UEMOA.
26 Table AIII.1.WT/TPR/S/119 Trade Policy Review
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Table III.2
Rate of duty actually applied (MFN customs duties plus principal supplementary duties/taxes and import surcharges), 2002
Imports in 2001 10-digit tariff lines
Value
(US$ millions)Share
(%)Simple
average
of duties
(%)NumberShare
(%)
Total 1,730.2 100.0 14.7 5,546 100.0
WTO definitiona
Agricultural products 467.1 27.0 16.8 819 14.8
Non-agricultural products (excl.
petroleum)1,016.9 58.8 14.3 4,707 84.9
Petroleum 246.1 14.2 10.0 20 0.4
Harmonized System definition
Primary productsb465.1 26.9 17.6 851 15.3
Other productsc1,265.0 73.1 14.1 4,695 84.7
a In Annex 1 to the WTO Agreement on Agriculture, agricultural products are defined as products in Chapters 01 to 24 of the HS,
less fish and fish products (Chapter 3), together with certain products in Chapters 29, 33, 35, 38, 41, 43, 50, 51, 52 and 53.
b HS Chapters 01 to 24.
c HS Chapters 25 to 97.
Note: 1. The tariff comprises 5,546 10-digit lines.
2. The principal supplementary duties/taxes used for these calculations include the statistical charge, the community solidarit y
levies, the surcharges and the tax on textiles.  Senegal has also reserved the right to a 150 per cent margin for the category “Other
duties and taxes” in its Schedule XLIX.
Source : WTO Secretariat calculations based on data provided by the Senegalese authorities.
28. The application of surcharges has also affect ed the relationship between the tariff actually
applied and the bound level of customs duties set out in Schedule of Concessions XLIX annexed to
the GATT 1994.  For example, according to the CET, a 20 per cent MFN customs duty applies to
onions, cigarettes, potatoes and bananas, to which must be added supplementary duties of 2.5 per cent
and a surcharge of 20 per cent, making a total of 42.5 per cent, whereas the bound level is 30 per cent;
the Senegalese authorities explain that they have reserved the right to impose other duties and taxes
on agricultural products by entering the figure 150 per cent in the column “Other duties and taxes” in
Schedule XLIX (Chapter II(4)(i)).  In general, however, the duties actually applied are below the
levels bound in 2002.27
Dispersion of duties actually applied
29. Grouping products in four major categories in the TEC significantly reduces the dispersion of
duties.  Nevertheless, the dispersion of Senegalese tariffs actually applied is greatly increased by the
application of surcharges on certain products, for example those subject to a 20 per cent surcharge
(onions, cigarettes, potatoes and bananas).  As a result, Senegal does not fully enjoy the economic
benefits of the TEC.
Escalation of duties actually applied
30. Senegal maintains a tariff regime under which the manufacturing sector benefits from levels
of protection that are actually higher than those indicated by the nominal rates (Chart III.1).  In fact,
the simple average of duties on unprocessed and semi-processed products in the agricultural sector is
                                                     
27 Senegal has undertaken gradually to lower the bound rate on butter, some dairy products and beer to
15 per cent by 2005. As a result of the application of the WAEMU’s TEC, some of these products are currentlyin category 3 of the TEC (consumer goods) and are subject to a customs duty of 20 per cent.Senegal WT/TPR/S/119
Page 41
lower than the simple average of duties on finished products and this escalation can be seen in other
sectors as well, with the exception of machinery and equipment, where finished products are included
in category 1 of the WAEMU’s CET, in other words, that of essential goods.
0.05.010.015.020.025.0
Unprocessed products Semi-processed products Processed productsChart III.1
Escalation of duties actually applied (including taxes) according to the ISIC two-digit classification 
of industry (2002)
Percentage
Source : WTO Secretariat on the basis of data provided b y the Sene galese authorities.
(b) Excise duty
31. In order to harmonize the legislation on excise duty28 in the member States of the WAEMU,
excise duties are mandatorily imposed on tobacco, tobacco products, and alcoholic and non-alcoholic
beverages (excluding water);  in addition, four products selected from a common list of nine
products – coffee, cola, wheat flour, edible oils and fats, perfumery and cosmetics products, tea,
weapons and ammunition – may also be subject to excise duty.  Each member State is free to fix the
excise duty within the ranges determined.
32. In Senegal, excise duty is imposed on the following products: so-called “economic” cigarettes
(15 per cent) and “premium” cigarettes and other tobacco products subject to the tax (30 per cent)29;
alcoholic beverages (30 per cent) and aerated beverages (2.75 per cent);  perfumery and cosmetics
products (10 per cent);  coffee and tea (3.8 per cent);  cola nuts (30 per cent);  refined vegetable oils
                                                     
28 Directive No. 3/98/CM/UEMOA.
29 When the ex-factory selling price excluding tax or customs value plus the duties and taxes collected
by the customs (not including VAT and the special t obacco tax) is CFAF 250 or more per packet of 20
cigarettes.WT/TPR/S/119 Trade Policy Review
Page 42
(15 per cent);  butter, dairy cream and mixtures co ntaining butter or cream (12 per cent);  and other
fats (5 per cent), with the exception of all types of groundnut oil.30
33. According to the WAEMU Commission, the difference between the tax on so-called
“economic” and “premium” cigarettes is de facto  protection of domestic industry.31  The Senegalese
authorities point out that two types of cigarettes are produced locally, but the lower tax on “economic”
cigarettes allows low-income sectors to purchase cigarettes.  Social reasons are also put forward bythe Senegalese authorities to justify the exemption of groundnut oil from excise duty
(Chapter IV(2)(ii)).
34. In order to harmonize WAEMU member States ’ legislation on the taxation of petroleum
products
32, these are mandatorily subject to excise duty.  The member States of the WAEMU are free
to fix the levels, but must gradually narrow the ga p between individual products.  The excise duties
applied in Senegal are:  CFAF 20,665 on premium petrol;  CFAF 18,847 on regular petrol;  and
CFAF 9,375 on diesel fuel.  The Senegalese authorities indicate that consideration is being given to
bridging the gap between the taxes on diesel fuel and premium petrol in order to comply with the
relevant WAEMU directive.
35. Excise duty applies to the products in question of any origin (including those from the
WAEMU).  The amount of excise duty levied on imports is calculated on the taxable base of the
customs value plus the customs duty itself (MFN or preferential) and the RS.
(c) Value added tax (VAT)
36. In order to harmonize the legislation on VAT in the WAEMU member States33, Senegal
undertook a far-reaching simplification and harmonization of the VAT regime as of
24 September 2001.34  The WAEMU regulations provide for a single rate of VAT, on a common basis
and at a convergent rate, with the exception of common exemptions;  in Senegal, the ordinary VATrate is 18 per cent.  The common exemptions include the following:  deliveries of medicines and
pharmaceuticals;  unprocessed and staple food products;  banking operations and insurance and
reinsurance services, which are subject to a special tax regime;  imports of goods the supply of which
is exempt from VAT within Senegal;  exports and international transport.  The exemptions granted by
Senegal are in conformity with those laid down in the relevant WAEMU directive.
37. VAT is applied to domestic and imported products of any origin (including those from the
WAEMU), except for products the supply of which is exempt from VAT within Senegal, in
conformity with the principle of national treatment.  VAT on crude petroleum products is suspended
until they are put up for consumption in the customs sense of the term.  Consequently, the amount of
VAT is calculated on the taxable base of the customs value, plus the customs duty itself (MFN orpreferential), the RS and the PCS, as well as excise duty or surcharges, where applicable.
(d) Customs revenue
38. In principle, the revenue collected by customs authorities is composed of customs duties
(including surcharges), excise duty and VAT on imported products.  Revenue from the RS and the
PCS are refunded to the WAEMU and the ECOWAS .  The total amount of revenue collected on
                                                     
30 Law No. 2002-07 of 22 February 2002.
31 WAEMU Commission (2002).
32 Directive No. 6/2001/CM/UEMOA.
33 Directive No. 2/98/CM/UEMOA.
34 Law No. 2001-07 of 18 September 2001.Senegal WT/TPR/S/119
Page 43
imported products was CFAF 240.1 b illion, an increase of 10 per cent in comparison with the figure
of CFAF 219.9 billion for the year 2001.  The total amount of import revenue was collected on a
taxable value of CFAF 1,427 billion for 2002, which results in an overall rate of imposition of duties
and taxes of 17 per cent on imports.
39. The taxable value decreases as a result of two factors in particular: the preferences granted to
products originating in the WAEMU; and the volume of goods admitted free of duty and taxes as aresult of the application of the Investment Code (section 4(ii)).  The revenue foregone as a result of
various duty and tax-free regimes under the Investme nt Code has been valu ed at CFAF 35.3 billion
and CFAF 56.6 billion for 2001 and 2002 respectively.
40. There is also a strong incentive for tax evasion and tax fraud at the border because of the
relatively high level of taxes on certain products.  Imports are subject to customs duty, supplementaryduties, a surcharge, where applicable, to which must be added excise duty, where applicable, and
VAT.  For example, premium cigarettes are subject to customs duty of 20 per cent, supplementary
duties of 2.5 per cent, excise duty of 30 per cent, and VAT of 18 per cent, which increases the
customs value by 88 per cent.  Domestically-produced "economic" cigarettes only pay a reduced
excise duty of 15 per cent and VAT of 18 per cent, which increases the ex-factory value by36 per cent, corresponding to a comfortable margin of protection in comparison with imported
premium cigarettes.
(v) Rules of origin
41. MFN duties apply to imports of goods of any or igin, with the exception of products covered
by the transitional preferential regime of the WAEMU.
35  The regime has been in place since
1 July 1996 and provides total exemption from MFN customs duties for local products and traditional
crafts;  Senegal has also granted such treatment to local products and traditional crafts of ECOWASorigin since 2000.  A certificate of origin is required.
42. Industrial products produced by enterprises approved by the WAEMU Commission have been
granted entry totally free of duty since 1 January 2000.  Applications for approval are made by
member States.  The number of industrial produ cts concerned increased from 948 to 2,240 between
May 1998 and the end of 2002 and a number of Senegalese enterprises have been approved to allowthem to benefit from the duty-free regime.
36  Originating industrial products from enterprises that are
not approved are granted a 5 per cent reduction in MFN customs duties.
43. The new WAEMU rules of origin came into effect on 1 January 2003.37  Products originating
in the WAEMU comprise local products and traditiona l crafts and those in whose manufacture at least
60 per cent of the raw materials come from the country in question;  products obtained are thosewhich have been the subject of sufficient working or processing.  The latter are defined according to
two rules:  a change in the tariff classification affecting one of the first four digits of the WAEMU
                                                     
35 Additional Act No. 4/96, as amended by Additional Act No. 1/97 and Additional Act No. 4/98.
Regulation No. 4/2001/CM/UEMOA exempts imports of inputs taxed more highly than certain finished
products from application of the CET.  These are imported under a suspensive customs regime if they are to beused to manufacture pharmaceuticals (Chapter 30 of the HS), books, brochures and printed matter (49 01), orcertain machinery, appliances and parts thereof (84 32 10 00 00;  84 32 30 00 00;  84 32 90 00 00;84 37 10 00 00;  84 37 80 00 00).  Under the CET stru cture, pharmaceuticals are social products in the zero
category (no customs duty applies) and inputs used to manufacture such pharmaceuticals are therefore exempt.
36 Annex to Decision No. 01/99/COM/UEMOA.
37 Additional Protocol No. III establishing the WAEMU rules of origin.WT/TPR/S/119 Trade Policy Review
Page 44
tariff and statistical nomenclature, subject to a li st of exceptions;  or those whose community value
added is 30 per cent or more of the ex-factory cost price excluding tax (the previous WAEMU rules of
origin fixed the community value added threshold at 40 per cent).  Applications for approval of
products originating in the WAEMU have been dealt with by the national authorities since the
beginning of 2003 and applications for products obtained will be dealt with in the same way as of
2006.
(vi) Prohibitions and products subject to licensing
44. According to Senegal’s notifications to the WTO38, imports of weapons and ammunition39,
explosives40, raw diamonds not cleaved or cut41, drugs and narcotics42, and obscene publications are
prohibited.43  Two other prohibitions – on trade with South Africa and in certain second-hand
vehicles44 – have been abolished since Senegal’s first trade policy review.45  Senegal did away with
almost all its licensing regime between 1994 and 199646, and has bound this in its Schedule of Tariff
Concessions XLIX for agricultural products (WTO definition).  The only products subject to prior
authorization are now imports of gold and unworked silver in ingots, and pharmaceuticals.
(vii) Technical standards and accreditation procedures
45. Senegal substantially reformed its system of standardization, accreditation and certification of
conformity with standards in 2002.  Since then, the Senegalese Standards Institute (ISN), a
government body set up in 1978, has been replaced  by the Senegalese Stan dards Association (ASN).47
The private sector has majority participation in the latter’s decision-making bodies (60 per cent),
together with the State (40 per cent).  The ASN is responsible for standardization and for the national
system of certification of conformity with standards.  This body accepted Annex III to the
WTO Agreement on Technical Barriers to Trade, as the ISN had done.48
46. A catalogue of Senegalese standards is available to the public.49  There has been an increase
in the number of standards, which currently amount to 197, of which 110 are based on international
standards;  the only mandatory standards are those on discharge of wastewater, the method of drawing
up export documents, vinegar, iodized salt, tomato concentrate, paddy rice and milled rice.  As
regards tomato concentrate (single, double or triple  strength), imports of double tomato concentrate
that does not comply with the standards applicable to domestic production are banned;  the purpose ofthis standard is to protect the domestic industry producing double tomato concentrate, which is a basic
foodstuff in Senegal.
                                                     
38 WTO documents G/LIC/N/3/SEN/1 of 11 February 1997 and G/LIC/N/1/SEN/1 of 23 October 2002.
39 Law No. 66-03 of 18 January 1966.
40 Law No. 64-52 of 10 July 1964. Their import, manufacture, possession and transport are prohibited.
41 Decree of 26 May 1937.
42 Decree of 26 January 1926. Their import, export, storage and deposit are prohibited.
43 International convention of 12 September 1923, implemented by a decree dated 3 July 1942.
44 Decree No. 96-584 of 9 July 1996.
45 GATT (1994), Volume I, Chapter IV(2)(viii).
46 Decrees No. 94-669 of 30 June 1994, No. 94-1033 of 10 October 1994, No. 94-1171 of 31 October
1994, No. 94-1172 of 31 October 1994, No. 94-1426 of 12 December 1994, No. 95-023 of 9 January 1995,No. 95-78 of 20 January 1995, No. 95-177 of 16 February 1995, No. 95-1005 of 7 November 1995, and No. 96-584 of 9 July 1996.
47 Decree of 19 July 2002.
48 WTO document G/TBT/CS/N/27 of 23 February 1996.
49 The 2001 edition comprises 171 standards broken down as follows: 57 for the building and civil
engineering sector, 46 for the agro-food sector, 14 relating to basic standards (for example, sizes and units), 55for chemical/environmental matters, 2 for administration and trade, and 9 for the chemical industry.Senegal WT/TPR/S/119
Page 45
47. Senegalese standards apply both to locally produced and imported products.  The conformity
of imported products with standards that are mandatory under regulatory technical provisions must be
certified by a body recognized by Senegal.
48. Senegal has notified the WTO of several mandatory standards in cases where there are no
relevant international standards or where the technical content of a planned technical regulation is not
in conformity with the relevant international standards.  These concern technical standards on
common wheat flour, tomato concentrate, peanut pa ste, and the dosing methods for aflatoxins in
peanut paste.50
(viii) Sanitary and phytosanitary measures
49. Senegal applies sanitary control measures in conformity with the Phytosanitary Convention
for Africa South of the Sahara.  This system provides for total bans, prior authorization by theSenegalese plant protection service, authorization for import limited to certain designated institutions,
and free import.  A phytosanitary certificate is required for all plant imports.  Quarantine is allowed
only in sites recognized by the Inter-Africa n Phytosanitary Council, including Kew (United
Kingdom), Lisbon (Portugal), Paris (France), Ibadan (Nigeria), Stellenbosch (South Africa) and
Madagascar.
50. The sale or distribution of any pesticides, fungicides, insecticides, etc. (agropharmaceuticals)
not approved by the authorities is banned.
51  A special authorization is granted under a joint order by
the Minister for Rural Development and the Minister for Health for a limited period.  A special
commission, the National Commission for the Approval of Agropharmaceutical Specialities,
examines requests for authorization and makes recommendations to the competent ministers.  The
products must be tested to verify their effectiveness and that they are not harmful to health, crops,
animals or the environment under normal conditions of use.
(ix) Contingency measures
51. Senegal has notified its legislation on anti-dumping and countervailing measures to the
WTO.52  This law incorporates the main elements of the relevant WTO Agreements and is
implemented by decree.  In practice, it has not yet been used by domestic enterprises because,
according to the Senegalese authorities, there have been difficulties in determining dumping orsubsidization, injury and a causal link.  As a result, Senegal regularly notifies the WTO that no anti-
dumping
53 or countervailing54 measures have been imposed.  On 23 May 2003, the WAEMU adopted
a Community Anti-Dumping Code, to come into effect as of 1 July 2004, which fully incorporates the
provisions of the relevant WTO Agreement.55
52. In November 1996, Senegal notified the WTO that it was “currently amending its embryonic
national legislation relating to safeguards and will notify it as soon as it has been adopted”56, but no
further notification has been communicated.  The Senegalese authorities have not informed the WTO
                                                     
50 WTO documents G/TBT/Notif.97.348 of 15 July 1997, G/TBT/Notif.00/472 of 3 October 2000,
G/TBT/Notif.00/473 of 3 October 2000, and G/TBT/Notif.00/474 of 5 October 2000.
51 Decree No. 84-14 of 2 February 1984.
52 Law No. 94-68 of 22 August 1994. WTO document G/ADP/N/1/SEN/1 of 31 July 1996.
53 WTO document G/ADP/N/4/Add.1/Rev.13 of 16 April 2002.
54 WTO document G/SCM/N/19/Add.1/Rev.10 of 18 October 2002.
55 Regulation No. 9/2003/CM/UEMOA.
56 WTO document G/SG/N/1/SEN/1 of 1 November 1996.WT/TPR/S/119 Trade Policy Review
Page 46
Secretariat of any such legislation.  Nevertheless, in 1998 the WAEMU adopted regulations
prescribing the procedures that allow member States to take safeguard measures as an exception to the
common trade policy.57  Such measures cannot be taken without the authorization of the WAEMU
Commission, following a request made by a member State.  The regulations state that “the
Commission shall ensure that the safeguard measures adopted comply with the general principles of
the relevant rules of the World Trade Organization”.58  Senegal has not had recourse to these
regulations and no safeguard measures have been taken.
(x) State trading
53. Senegal has not notified the WTO of any State trading enterprises within the meaning of
Article XVII of the GATT that deal with imports.  Since the first review of Senegal’s trade policy, the
monopoly given to the public sector (at that time the Price Equalization and Stabilization Fund) forimports of broken rice has been abolished;  this was done in 1995, and the monopoly of imports of
crude petroleum given to the African Refining Company (SAR) was abolished in 1998.
59  T h e
National Supply Pharmacy, a State enterprise, has a monopoly of the purchase and distribution of
pharmaceuticals throughout Senegal.
(3) MEASURES DIRECTLY AFFECTING EXPORTS
(i) Duties and taxes
54. The Senegalese authorities confirm that no products are subject to export duties or taxes and
that exports are also exempt from VAT.
(ii) Prohibitions and products subject to licensing, sanitary and phytosanitary measures
55. Senegal does not currently apply any prohibition or quantitative restriction on exports.  In
1994, quantitative restrictions on exports of cereals, sugar, groundnuts, tomato-based products,
precious metals and jewellery were abolished.60  With the exception of gold and products normally
subject to controls (for example, chemicals), no other product requires an export licence.  Exports of
plants and live animals or their meat, as well as fisheries products, however, must have the certificates
required by the importing country.
(iii) Export subsidies and promotion
56. In 1997, Senegal notified the WTO that no direct export subsidies were granted.61  The export
subsidies mechanism (premium or compensation upon export) mentioned by the Secretariat during the
first review of Senegal’s trade policy was abolished in 1994.62  It should be noted, however, that in
1996 a free export enterprise regime was established (see section (4)(ii)), and this gives approved
enterprises substantial fiscal benefits provided that 80 per cent of their turnover derives from exports
(section (4)(ii)(c)).  The Senegalese authorities explain that these export incentives are justified by theexcess costs generated by the situation in developing countries like Senegal and the aim of integration
in the global economy.
                                                     
57 Regulation No. 14/98/CM/UEMOA.
58 Article 7 of Regulation No. 14/98/CM/UEMOA.
59 The State has a 10 per cent holding, while the other shareholders are foreign oil companies such as
Elf Aquitaine, Total, BP, Shell, Texaco and Exxon.
60 Decree No. 94-668.
61 WTO document G/SCM/N/3/SEN of 27 January 1997.
62 GATT (1994), Volume I, Chapter IV(3)(x)).Senegal WT/TPR/S/119
Page 47
57. The Senegalese authorities have indicated that there are a number of sectoral export
promotion programmes such as the Agricultural Exports Promotion Project.  In the context of the
Integrated Framework, Senegal has adopted a new strategy to promote exports, the Export
Development and Promotion Strategy (STRADEX), which will come into effect on 30 June 2003.
This programme has been drawn up on the basis of a survey carried out in collaboration with the ITC
to identify international market opportunities and the export potential afforded by marine products,intellectual products and services, cultural products, horticultural, oilseed and "wild" products, and
products intended for ethnic markets.  In addition, it is planned to reform the export promotion
mechanism by setting up an Export Promotion Authority.
(iv) State trading
58. When Senegal first appeared before the TPRB  in 1994, the Secretariat had drawn attention to
the virtual monopoly enjoyed by the State enterprises SONACOS and SODEFITEX for the export of
oilseed and cotton products respectively.  The authorities explained that these were not legal
monopolies but de facto  monopolies and this is still the case as regards SODEFITEX. NOVASEN is
currently responsible for marketing crude oil and groundnut oilseedcake abroad. SONACOS and
SODEFITEX are included in the privatization programme.
(4) 
DOMESTIC MEASURES
(i) Legal regime governing enterprises and companies in Senegal
59. Senegal has been a member of the Organiza tion for the Harmonization of Business Law in
Africa (OHADA) since 18 September 1995.  The Organization was established under the Treaty on
the Harmonization of Business Law in Africa, signed on 17 October 1993.  It comprises the WAEMU
countries and those of the Central African Economic and Monetary Community (CEMAC).63  T h e
main objective of the Treaty is to remedy the legal and judicial insecurity in member States, due inparticular to the obsolescence of the legal texts in effect, the majority of which date from the colonial
era, by adopting common legal texts called “uniform acts”.  The seven uniform acts on commercial
companies so far adopted by the OHADA concern the following: general commercial law;
commercial companies and economic interest groups;  arrangements for security;  simplified recovery
procedures and enforcement;  bankruptcy and insolvency;  arbitration; and organization andharmonization of business accounting.
60. The Common Court of Justice and Arbitration, with  headquarters in Abidjan in Côte d’Ivoire,
is the appeal body and replaces national appeal bodies for any disputes concerning the uniform law;
appeals may be brought before the Court either directly by one of the parties to proceedings before a
national court or by referral from a national court.  The Court organizes and oversees the properconduct of arbitration proceedings:  it appoints or confirms the appointment of arbitrators, is informed
of the progress of the proceedings and examines the draft rulings, although it may only propose
formal amendments.
61. The first four uniform acts on commercial companies entered into force in Senegal on
1 January 1998 (enterprises established under the previous provisions had until 1 January 2000 tocomply with the new acts).  The next two uniform acts entered into force on 1 January 1999.  The last
                                                     
63 The other member countries of the OHADA are Benin, Burkina Faso, Cameroon, the Central African
Republic, Chad, Congo, Côte d’Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali, Mauritania,
Niger and Togo.  See http://www.ohada.com.WT/TPR/S/119 Trade Policy Review
Page 48
uniform act came into effect in Senegal on 1 January 2001 in the case of payrolls and on
1 January 2002 for consolidated or combined financial statements.
62. In addition to observance of the regulations in  force, the following procedures are mandatory
for the creation of an individual enterprise or company in Senegal:  declaration of proper standing and
conformity or notarized declaration of subscription and payment; registration in the Commercial
Register and with the Securities Office (with the exception of jointly-owned companies).  After the
formalities have been completed and within a period of 15 days, a notice is published in the journal of
legal notices.  Administrative formalities may be carried out at the single window of the National
Agency for the Promotion of Investment and Major Public Works (APIX).  The cost of setting up a
limited liability company (SARL) or a public limited company is reasonable and ranges from
CFAF 215,420 to CFAF 2,177,340, corresponding to between €330 and €3,380.
(ii) Investment regime
(a) Overview
63. The main elements relating to in vestment in the poverty reduction strategy (PRS) are, on the
one hand, to expand an investor’s scope by privatizing State enterprises and by promoting major
public works64 and, on the other, to create a climate conducive to setting up an enterprise in Senegal.
Senegal’s Investment Code has not been amended since the first trade policy review in 199465; and its
provisions were notified to the WTO in 1997.66  The creation of the APIX in July 2000 has created a
more favourable climate for investors.
64. The Senegalese authorities have indicated that a number of studies carried out in Senegal
show that the investment climate is undermined by a number of problems related to administrative
procedures, labour regulations and lack of infrastructure.67  The State is, however, trying to find
solutions to these problems, for example, it has set up the APIX and improved the infrastructure, butabove all labour regulations have been simplified and a new Labour Code was adopted in 1997.
(b) Investment Code
65. Article 1 of Senegal’s Investment Code states that any legal or natural person of any
nationality duly established in Senegal and engaged in an activity in one of the sectors covered by the
Code, or with a holding in the capital of a company established in accordance with Senegaleselegislation, may obtain approval that allows them to enjoy the general guarantees provided under
Title II of the Code and to be eligible for benefits  in accordance with the terms defined in Title III of
the Code.
66. The following are the sectors covered by the Code: agriculture, fishing, livestock breeding
and related processing activities, storage and packaging of products of plant, animal or fish origin;manufacturing;  prospecting, mining or processing  of mineral substances;  tourism and other hotel-
                                                     
64 President Wade’s large-scale projects are the new international airport in Dakar, the toll motorway,
the standard-gauge railway, the West African business centre, the future port, the mineral port at Bargny, andthe stabilization of the coasts and cliffs in Dakar.
65 Law No. 87-25 of 18 August 1987, amended by Law No. 89-31 of 12 October 1989.
66 WTO documents G/SCM/N/3/SEN of 27 January 1997 and G/SCM/N/3/SEN/Suppl.1 of
21 November 1997.
67 See also the United States Department of Trade report on Senegal.  Available at
http://www.ita.doc.gov [3 January 2003].Senegal WT/TPR/S/119
Page 49
related activities;  cultural activities by a small- or medium-sized enterprise68; services provided by
small- or medium-sized enterprises in the areas of health, education, assembly and maintenance of
industrial machinery and equipment; port infrastructure work; installation and management of
railways.  The authorities are currently examining broader sectoral coverage for the Code, including
telecommunications and “new technologies” such as ca ll centres so as to give investors access to the
guarantees and benefits of the Code.
67. The guarantees afforded are:  freedom to transfer capital for natural or legal non-residents;
equal treatment on the basis of reciprocity (Article 9);  the right to dispute settlement resulting from
the interpretation or application of the Code.  Disputes are settled by the competent Senegalese courts,
except in the case of foreign persons.  In the latter case, they are settled through a conciliation and
arbitration procedure arising either from mutual agreement between the two parties69, under
investment protection agreements or treaties between Senegal and the State of which the person
concerned is a citizen70;  there is no possibility of appealing to the International Centre for Settlement
of Investment Disputes (ICSID).
68. Capital investment covers a contribution in foreign currency or capital goods, a loan for a
period exceeding 10 years, and the part of retained earnings that is reinvested;  the expansion ofexisting enterprises is also deemed to be investme nt if it exceeds CFAF 100 million, creates at least
50 permanent jobs or leads to an increase of at least 25 per cent in the permanent payroll or the
enterprise’s fixed capital.  Such expansions must be the subject of separate accounts.  The APIX states
that the purchase of foreign assets by Senegalese nationals is also deemed to be an investment.  There
is no limit on foreign holdings in the capital of a company set up in Senegal in the sectors covered by
the Investment Code.
71
69. Enterprises approved under the Investment Code are eligible for a number of benefits under
the common regime and one or more of the four privileged regimes (Table III.3).  The four privileged
regimes correspond to the four priority objectives of the Investment Code:  the promotion of small-
and medium-sized enterprises (SMEs);  the upgrading of local resources through processing in
Senegal;  the development of technological innovation through research or the use of research
findings;  and the establishment of economic activities in regions in the interior of Senegal.72
Although Senegal has not notified the WTO of any trade-related investment measure, one of the
conditions of approval of projects under the privileged regime for the upgrading of local resources
through processing in Senegal is that 65 per cent (in value terms) of intermediate consumption should
be of Senegalese origin or that the cost of imported products should represent less than 35 per cent of
the total cost of the products obtained after processi ng in Senegal.  The Senegalese authorities indicate
that there is no exhaustive list of enterprises benefiting from this regime.
                                                     
68 Defined in Article 17 of the Code.  A small- or medium-sized enterprise is one that invests CFAF5 to
200 million, creates at least three jobs for Senegalese nationals, and keeps proper accounts.
69 The Dakar Chamber of Commerce has set up an arbitration centre to settle disputes.
70 Senegal has signed bilateral investment agreements  and treaties with 10 States, of which eight are in
force:  Germany (1966), Republic of Korea (1985), the Netherlands (1981), the United States of America(1990), Romania (1984), the United Kingdom (1984), Sweden (1968) and Switzerland (1964).
71 There are, however, such limits in sectoral codes, such as telecommunications, which are not covered
by the Investment Code.
72 Zone A includes the city of Dakar and its surroundings;  Zone B covers the rest of the Dakar region
and the region of Thiès;  Zone C includes the regions of Diourbel, Louga and Kaolack;  and Zone D covers the
regions of Fatick, Kolda, Tambacounda, Ziguinchor and Saint-Louis.WT/TPR/S/119 Trade Policy Review
Page 50
70. The criteria for approval under the Code are financing of investment from own funds
amounting to at least 20 per cent for SMEs and 30 per cent for large enterprises, and SMEs must
create at least three permanent jobs for Senegalese nationals.  A regime of special benefits applies to
the purchase of foreign assets by Senegalese nationals.  It should be noted that the Senegalese
authorities are currently considering granting special benefits under negotiated agreements, which
would lessen the transparency of the current regime.
Table III.3
Investment-related conditions and benefits in Senegal
Regime Conditions Benefits Duration (degressivity)
Common Any enterprise engaged in an
activity in one of the sectorscovered by the Code, with the
exception of those carrying out
business activities or eligibleunder special codes, or approved
projects concerning the purchase
of foreign assets by Senegalesecitizens.- Exemption from duties and taxes on the
import of machinery and materials that areneither produced nor manufactured in Senegal
and are specifically intended for production or
exploitation in the context of the approvedprogramme;
- Exemption from VAT invoiced by local
suppliers of goods, services and work needed
to carry out the approved programme;
- Exemption from the standing contribution
paid by employers on wages paid to
Senegalese employees;
- Possibility of concluding fixed-term labour
contracts for five years.- Two years for SMEs;
- Three years for large
enterprises.
Zone A: 5 years; Zone B:
7 years; Zone C: 10 years;
Zone D: 12 years
Last three years: 75%;
50%; 25%.
SMEs - Investment programme
amounting to CFAF 5 to 400
million;
- Creation of at least 3 permanent
jobs for Senegalese nationals.- Exemption from duty on deeds attesting to
the establishment of companies and increases
in capital needed to carry out the approvedprogramme;
- Exemption from the business licence fee
(Zones B, C or D);
- Exemption from the minimum flat-rate tax.
Enterprises
upgrading local
resources- 65% (in value terms) of
intermediate consumption must
be of Senegalese origin;  or
- The cost of imported products
must represent less than 35% ofthe total cost of the products
obtained after processing in
Senegal.- Exemption from the minimum flat-rate tax;
- Exemption from the business licence fee
(Zones B, C or D).
Enterprises which
develop
technologicalinnovation
Decentralized
enterprises
Purchase
of foreign assetsby
Senegalese
citizens- 1% of the turnover must be
invested in research;
- Exploitation of research
findings by a Senegalese body or
researchers.
 90% of the personnel must work
outside region A, which coversDakar and its surroundings.
- The enterprise concerned must
be engaged in an activity that iseligible under the Investment
Code;- Same benefits as those given to SMEs.
Table III.3 (cont'd)Senegal WT/TPR/S/119
Page 51
Regime Conditions Benefits Duration (degressivity)
- Under the purchase transaction,
the enterprise’s capital must have
a Senegalese majority (51%);
- The ceiling for asset purchases
is set at CFAF 500 million.- Exemption from the minimum flat-rate tax.
- Exemption from duty on deeds attesting to
the establishment of companies and increasesin capital;
- Exemption from transfer fees payable on the
purchase of businesses and property
constituting the asset purchase operation;
- Exemption from the minimum flat-rate tax
for a period of 5 years;
- Deduction from the profits taxable under the
scheduled taxes on industrial and commercialprofits of the annual amortization payments on
loans contracted in order to purchase the
foreign enterprise.Zone A: 5 years; Zone
 B: 7
years; Zone C: 10 years;
Zone D: 12 yearsLast three years: 75%;
50%; 25%.
Source:  APIX.
(c) Free export enterprise regime
71. The status of free export enterprise is a new feature since Senegal’s first trade policy review
in 1994.73  This regime complements the Dakar Industrial Free-Trade Zone set up in 1974, which is
not accepting any new enterprises and whose statute will expire in 2016, and it replaces the “free
points” regime established in 1991.74  Senegal notified this subsidy programme to the WTO in 1997.75
72. The two principal criteria for acceptance as a free export enterprise are that the enterprise
should be engaged either in an agricultural activity (in the broad sense, including horticulture,forestry, livestock breeding, fishing and aquaculture) or in an industrial activity, and that its export
potential should be at least 80 per cent of its turnover (instead of the 60 per cent under the Dakar
Industrial Free-Trade Zone regime).  There is no limit on foreign holdings in the capital of a free
export enterprise and the latter may set up anywhere in Senegal.  The duration is 25 years and may be
renewed.
73. The benefits given to free export enterprises are the same as those under the Investment Code.
Two significant improvements are: the no less fav ourable treatment afforded to enterprises without
free export enterprise status, which means that the latter do not suffer any disadvantages if changes
are made to other investment-related regimes; a nd the option of dispute settlement by the ICSID.
76
74. The main benefits granted to free export enterprises are exemption from duties and taxes on
the import of equipment and materials needed to set up a production unit, and on any inputs, as well
                                                     
73 Law No. 95-34 of 21 December 1995 and Implem enting Decree No. 96-869 of 15 October 1996.
74 Law No. 74-06 of 22 April 1974 establishing the Dakar Industrial Free-Trade Zone, amended by
Law No. 79-21 of 24 January 1979 and Law No. 91-30 of 12 April 1991 on the status of free points.  See GATT(1994), Volume I, Chapter III(3).
75 WTO documents G/SCM/N/3/SEN of 27 January 1997 and G/SCM/N/3/SEN/Suppl.1 of
21 November 1997.
76 The “ Societé Ouest-Africaine des Bétons Industriels v. Sénégal ” case, No. ARB/82/1, is the only case
dealt with by the ICSID.WT/TPR/S/119 Trade Policy Review
Page 52
as a reduction in corporation tax to 15 per cent instead of 35 per cent (Table III.4).  Exports by these
enterprises to the WAEMU are not eligible for WAEMU origin.
75. The Senegalese authorities have provided a list of the 171 investment projects approved
between 1997 and 2003 that benefit from this status, amounting to a total investment of
CFAF 140.8 billion.  Most of the approved projects are projects that have been included in the regime
rather than projects that have started up under the regime.  As far as their activities are concerned,55 per cent are engaged in fishing and others in the agro-food, tanning and textiles sectors.
Table III.4
Benefits under Senegal’s free export enterprise regime
Regime Benefits
Enterprises
Goods- Exemption from customs duties and customs stamps on goods vehicles and passenger vehicles and means of transport
to be used for production;
- Exemption from any taxes based on wages paid by the enterprises;
- Exemption from duty on deeds attesting to the establishment or modification of companies;
- Exemption from the business licence fee, the property tax on undeveloped land, and the licence fee;- Exemption from the minimum tax on income from securities levied by the enterprise on the dividends distributed;
- Corporation tax at a rate of 15%.
- Duty-free export or import of capital goods, equipment, raw materials, finished and semi-finished products;
- Local purchases free of tax;
- Imported goods may remain for an unlimited period;- 20% of production may be sold on the local market (provided that the customs formalities are completed and the
applicable duties and taxes are paid;
- No restrictions on the nationality of the means used to transport goods.
Source:  APIX.
(d) APIX
76. APIX is in charge of giving approval under th e Investment Code and for the status of free
export enterprise.  Approval by the APIX requires  the submission of an application for approval
within a timeframe deemed reasonable and rapid by the Agency.77  According to the APIX,
432 projects were approved in 2001 for an overall total of CFAF 199 billion (€310 million).  The
432 projects approved planned to create 8,243 jobs , of which around half were in the secondary
sector, particularly in bakeries.  It is expected that this amount will increase in 2002, as the overall
total of projects approved during the first eight months of 2002 reached CFAF 364 billion
(€560 million).  The revenue foregone to the customs as a result of the granting of fiscal benefits
amounted to CFAF 56.6 billion (€38 million).
(e) Employment of Senegalese nationals and foreigners
77. Investors in Senegal must observe the labour regulations.78  Senegalese workers may be freely
recruited but the recruitment of foreigners is subject to authorization by the Ministry of Labour.  Theauthorization procedure is the same for all foreign workers.  A plan to eliminate work visas is
                                                     
77 The APIX has 30 days to examine applications for approval, i.e. 10 days for approval itself and
20 days for the administrative formalities.  The APIX explains that approval is tacit if there is no reply within
10 days following the application.
78 The Labour and Social Security Code, Law No. 97-17 of 1 December 1997, the National
Interprofessional Collective Agreement and the Collective Agreement governing the particular sector of activity.All workers must be registered with the social security authorities.Senegal WT/TPR/S/119
Page 53
currently being studied by the WAEMU.  Senegal has not made any commitment concerning the
supply of services through the presence of physical persons (mode 4) under the GATS.
(iii) Protection of intellectual property rights
(a) Overview
78. Since it became independent, Senegal has taken part in the efforts made by the franc zone to
establish a uniform regime for the protection of intellectual property that would be enforceable in eachcountry and have common administrative procedures.  These efforts started in 1962 with the creation
of the African and Malagasy Industrial Property Office under the Libreville Agreement, which was
replaced by the Bangui Agreement (1977) establishi ng the African Intellectual Property Organization
(OAPI), whose headquarters are in Yaoundé, Cameroon.
79
79. The 1977 Bangui Agreement was revised on 24 February 1999 and Senegal ratified the
revised instrument on 9 March 2000.  In undertaking the revision, the member States of the OAPI
wanted “to make its provisions consistent with the demands of international treaties relating to
intellectual property, to which member States are parties, especially the Agreement on Trade-Related
Aspects of Intellectual Property Rights;  to streamline the procedure for issuing certificates;  to
broaden the base of objects for protection;  and to fill up some legal gaps”.80  The terms of protection
have been amended in order to conform to those in the TRIPS Agreement (Table III.5).
80. The revised Agreement and Annexes I to VIII thereto came into force on 28 February 2002.
The Agreement applies as a domestic law in Senegal and is automatically enforceable;  there is no
domestic legal instrument for its implementation.  The OAPI Administrative Council deferred the
entry into force of Annexes IX and X dealing re spectively with layout-designs (topographies) of
integrated circuits, which should be protected under Article 35 of the TRIPS Agreement, and new
plant varieties, which should be the subject of patents according to Article 27 of the TRIPSAgreement.  For the time being, the OAPI does not have the necessary competence to receive
applications for protection under Annex IX and the majority of its member States do not have the
necessary centres of expertise capable of examining applications that may be made under Annex X.
Table III.5
Subjects and terms of protection under the Bangui Agreement (1977) and its revision (1999)
Subject Bangui Agreement (1977) Revised Bangui Agreement (1999)
Patents10 years, renewable for a maximum of two
further periods of 5 years20 years
Utility models 5 years 10 years
Trademarks or service marks 10 years, renewable every 10 years 10 years, renewable every 10 years
Industrial designs 5 years 5 years
Trade names 10 years, renewable every 10 years 10 years, renewable every 10 years
Appellations of origin n.a. n.a.
Literary and artistic property
Copyright Life of the author + 50 years Life of the author + 70 years
Table III.5 (cont'd)
                                                     
79 The other members of the Bangui Agreement (1977) are Benin, Burkina Faso, Cameroon, the Central
African Republic, Chad, Congo, Côte d’Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali,Mauritania, Niger and Togo (http://www.wipo.oapi.net).
80 OAPI, “Information Memo on the Enforcement of the Revised Bangui Agreement”.  Available at
http://www.wipo.oapi.net [5 January 2003].WT/TPR/S/119 Trade Policy Review
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Subject Bangui Agreement (1977) Revised Bangui Agreement (1999)
Films, radio and audiovisual
programmes50 years 70 years
Photographs 25 years 25 years
Related rights for performances n.a. 50 years
Related rights for phonograms n.a. 50 years
Related rights for broadcasts n.a. 25 years
Layout-designs (topographies) of
integrated circuitsa n.a. 10 years
Protection of new plant varietiesan.a. 25 years
aThe regime under the revised Bangui Agreement has not yet come into effect.
n.a. Not applicable.
Source: WTO Secretariat.
81. For each of its member States, the OAPI serves as the national industrial property service and
provides a common system of administrative procedures for registering rights.  This responsibility
also extends to implementing the provisions of mu ltilateral conventions to which the member States
of the OAPI are party.  The issue of a certificate by the OAPI automatically gives rise to rights valid
in all member States.
82. As regards multilateral intellectual property protection treaties, since 26 April 1970 Senegal
has been party to the Convention Establishing th e World Intellectual Property Organization (WIPO),
signed in Stockholm (1967).  The revised Bangui  Agreement (1999) commits its members to accede
to certain intellectual property protection treaties in force administered by the WIPO (Table AIII.4),
but Senegal has not yet acceded to some of these.81  In 2002, Senegal ratified the WIPO Copyright
Treaty and the WIPO Treaty on Performances and Phonograms.82
(b) Intellectual property rights under the revised Bangui Agreement (1999)
Industrial intellectual property
83. Annex I to the revised Bangui Agreement (1999) concerns patents.  According to Title I,
inventions (products or processes), may be patented providing that they are new, involve an inventive
step and are industrially applicable;  there is also provision for patents of addition.  Computer
programs and plant varieties may not, however, be  patented.  The maximum term of protection is
20 years as of the date of filing the application;  an extension has therefore been allowed for patents
issued under the previous regime of the 1977 Bangui Agreement.  The principle of national treatment
is also an integral part of Annex I to the revised Bangui Agreement (1999).
84. The revised Bangui Agreement (1999) has amended the provisions on non-voluntary licences
in order to make the conditions more stringent.83  Applications for non-voluntary licences before the
                                                     
81 Senegal has not yet acceded to the Lisbon Arrangement (1958), as revised at Stockholm (1967), the
Vienna Agreement (1973), the Budapest Treaty (1977), the Rome Convention (1961) for the Protection ofPerformers, Producers of Phonograms and Broadcasting Organizations, and the International Convention on theProtection of New Varieties of Plants (1961), as revised.
82 Regarding the two intellectual property protection tr eaties administered by the WIPO that are not yet
in force, Senegal has not signed the Geneva Act of the Hague Agreement Concerning the International Deposit
of Industrial Designs (1999) or the Patent Law Treaty (2000).  On 20 February 2000, Senegal ratified the Actamending Article 9.3 of the Convention Establishing the WIPO, which has not yet entered into force.
83 A licence must be issued to an applicant at the end of a period of three years following the
application for the patent (four years under the 1977 Ba ngui Agreement) subject to one or more of the followingSenegal WT/TPR/S/119
Page 55
civil courts must, inter alia , be accompanied by evidence of the effort made by the applicant to obtain
a licence agreement on reasonable commercial terms from the patent owner within a reasonable time.
The granting of a non-voluntary licence must be accompanied by “equitable” compensation to the
patent owner.
85. The revised Bangui Agreement (1999) also provides that utility models (Annex II),
trademarks or service marks (Annex III), industria l designs (Annex IV), trade names (Annex V) and
geographical indications (Annex VI) may be protected by the OAPI. In the same way as patents, such
protection is granted according to a procedure that commences with the filing of an application,
accompanied by the supporting documents, including a receipt for payment of the taxes due to the
OAPI.84  In the case of applicants not resident in member States of the OAPI, applications must be
filed with the OAPI either through an agent in one of the member States or following procedures laiddown in the Patent Cooperation Treaty.
85
86. In the case of applicants domiciled in one of the member States, applications are filed either
with the National Liaison Body (SNL) for the OAPI, or directly with the OAPI, or through an agent in
one of the member States.  In Senegal, the SNL is the industrial property and technology service in
the Ministry of Industry and Crafts and in 2001 it received a large number of applications for tradenames, 102 applications for protection of trademarks, and six applications for patent protection.
87. After the application filed has been received by the Director General of the OAPI, the latter
initiates the procedure, and registers and examines the application.  Any decision to reject an
application may be appealed to the High Commission of Appeal, whose decision is irrevocable.  If the
patent is granted, the attendant rights remain in effect subject to payment of the applicable renewal
fees.
Literary and artistic property
88. Annex VII to the revised Bangui Agreement (1999) deals with copyright, related rights and
the cultural heritage derived from the creative activities of nationals of the member countries.  There
is an exhaustive list of the subjects of copyright, the main ones being literary and artistic works –
cinema, theatre, audiovisual and pictorial works, sculpture or music.  Computer programs are also
recognized as works, in conformity with Article 10 of the TRIPS Agreement, whereas this was not
previously the case.  The work is protected throughout the life of the author plus 70 years, an increase
of 20 years compared with the 1977 Bangui Agreement.
89. The revised Agreement also recognizes related rights – rights of performers, producers of
phonograms and broadcasting organizations, whereas this was not previously the case.  The term ofprotection for performances is 50 years.
                                                                                                                                                                    
conditions: where the patented invention is not being worked in a member State;  where the industrial working
of the patented invention does not meet the demand for the protected product on reasonable terms; where the
patent owner refuses to grant a licence on reasonable commercial terms and procedures unless the owner of the
patent provides legitimate reasons for the non-working of the invention.  Under the 1977 Ba ngui Agreement, a
licence had to be issued to an applicant if the industrial working of the invention was prevented or hindered bythe import of the patented product, but this requirement has been eliminated in the revised Bangui Agreement(1999).  Title IV also declares that an ex officio  licence may be issued for the exploitation of a patented
invention that is of vital interest to national defence, public health or the national economy.
84 The OAPI has a guide for applicants on its website (http://www.wipo.oapi.net).
85 The list of approved agents is available on the OAPI site (http://www.wipo.oapi.net).WT/TPR/S/119 Trade Policy Review
Page 56
90. Regarding copyright and related rights, in 1973 Senegal established a national protection
regime, which is currently being revised to include the relevant provisions of the revised Bangui
Agreement (1999).86  The draft law provides for speedier procedures, stricter sanctions and the
integration of new technologies.
91. The Senegalese Copyright Office (BSDA) is responsible for the overall administration of
rights in Senegal.  The director of the BSDA recogn izes the gravity of the piracy problem in Senegal,
considering the importance of the country's artistic heritage.  Through the introduction of a
holographic identification system, in seven months the BSDA increased the amount of reproduction
rights for 2001 fourfold.87
Protection against unfair competition
92. Annex VIII to the revised Bangui Agreement (1999) covers protection against unfair
competition in a more general context than trade names and incorporates in particular the provisions
of section 7 of the TRIPS Agreement on the protection of undisclosed information.  According to
Article 6(4) of Annex VIII, an act of unfair co mpetition is "use in commerce of confidential data
obtained from tests or other confidential data … communicated to a competent authority for thepurpose of obtaining authorization to market pha rmaceutical products or chemical products for
agriculture comprising new chemical entities".
(c) Protection of intellectual property rights
93. The revised Bangui Agreement (1999) provides for the protection of the intellectual property
rights established therein, which lies within the competence of national authorities.  The penalties for
infringement have been significantly increased in order to enhance their deterrent effect
(Table III.6).
88  If the offence is repeated, terms of imprisonment ranging from one to six months are
provided.  The penalties may only be imposed by the competent Office of the Public Prosecutor upon
lodging of a complaint by the injured party.
Table III.6
Fines and terms of imprisonment under the Bangui Agreement (1977) and its revision (1999)
Offence Bangui Agreement (1977) Revised Bangui Agreement (1999)
Infringement of patents Fine of CFAF 30,000 to 50,000 and, if the
offence is repeated, a term of imprisonment of 1
to 6 monthsFine of CFAF 1,000,000 to 3,000,000 and, if the
offence is repeated, a term of imprisonment of 1
to 6 months
Infringement of utility models Fine of CFAF 30,000 to 180,000 and, if the
offence is repeated, a term of imprisonment of 1
to 6 monthsFine of CFAF 1,000,000 to 6,000,000 and, if the
offence is repeated, a term of imprisonment of 1
to 6 months
Unlawful exploitation of
registered trademarksFine of CFAF 50,000 to 150,000 and/or a term
of imprisonment of 1 month to 1 yearFine of CFAF 1,000,000 to 3,000,000 and a
term of imprisonment of 3 months to 2 years
Unlawful use of compulsory
marks and prohibited signsFine of CFAF 50,000 to 100,000 and/or a term
of imprisonment of 15 days to 6 monthsFine of CFAF 1,000,000 to 2,000,000 and a
term of imprisonment of 15 days to 6 months
Table III.6 (cont'd)
                                                     
86 Law No. 73-52 of 4 December 1973.
87 Journal:  Senegal, “ La Contrefaçon gangrène la culture africaine ”, http://www.afrik.com/
porte/naviporte/senegal/senegal-553-3.htm [12 December 2002].
88 Under the 1977 Ba ngui Agreement, no penalty could be applied if, at the end of a period of five
years from the filing of the application for a patent, the patent had not been worked.  This provision has beeneliminated in the revised Bangui Agreement (1999).Senegal WT/TPR/S/119
Page 57
Offence Bangui Agreement (1977) Revised Bangui Agreement (1999)
Infringement of industrial
designsFine of CFAF 50,000 to 300,000 and, if the
offence is repeated, a term of imprisonment of 1
to 6 monthsFine of CFAF 1,000,000 to 6,000,000 and, if the
offence is repeated, a term of imprisonment of 1
to 6 months
Infringement of rights in tradenamesFine of CFAF 50,000 to 300,000 and/or a term
of imprisonment of 3 months to 1 yearFine of CFAF 1,000,000 to 3,000,000 and/or a
term of imprisonment of 3 months to 2 years
Infringement of rights in
appellations of originFine of CFAF 50,000 to 300,000 and/or a term
of imprisonment of 3 months to 1 yearFine of CFAF 1,000,000 to 6,000,000 and/or a
term of imprisonment of 3 months to 1 year
Layout-designs (topographies)of integrated circuits
an.a. Fine of CFAF 1,000,000 to 6,000,000 and/or a
term of imprisonment of up to 6 months
Protection of new plantvarieties
an.a. Fine of CFAF 1,000,000 to 3,000,000 and/or a
term of imprisonment of 1 to 6 months
a The regime under the revised Bangui Agreement has not yet come into effect.n.a. Not applicable.
Source: WTO Secretariat.
94. Patent owners (whether Senegalese nationals or  foreigners) may, subject to an order by the
President of the Civil Court, have a detailed inventory of the allegedly infringing objects made, with
or without seizure.  Such an order “shall be made on request and on presentation of the patent”(Article 64(2) of Annex I).  The recognized in fringing objects and the tools intended for their
manufacture that have been seized are either destroyed or handed over to the owner of the patent.
95. Persons entitled to literary or artistic property rights may request the President of the Civil
Court to order certain action to combat piracy.  This consists of prohibiting the committing or
ordering the cessation of the infringement; seizure of the allegedly pirated objects; as well as thepayment of damages to the person entitled.  The amount of the damages is determined in accordance
with the relevant provisions of the national civil code.  The President of the Civil Court may also
order penal sanctions.
96. The border measures provided under Article 51 of the TRIPS Agreement concerning the
application by a right holder for suspension of release, are in principle the responsibility of nationalauthorities, which determine the relevant provisions in the national customs code.
89  The incorporation
of these provisions into Senegal’s Customs Code is under way.
97. Regarding process patents, Article 66 of Annex I to the revised Bangui Agreement (1999)
contains the provisions set out under Article 34 of the TRIPS Agreement concerning the burden of
proof in judicial disputes between holders of patents for processes for obtaining products and thoseaccused of having infringed them.  It states that "the judicial authorities shall have the authority to
order the defendant to prove that the process used to obtain an identical product is different from the
patented process in one of the following situations:  (a) the product obtained by the process is new;
(b) there is a substantial likelihood that the identical product was made by the process and the owner
of the patent has been unable through reasonable efforts to determine what process was actuallyused".  These provisions are currently being incorporated into Senegal’s legal system.
                                                     
89 The WAEMU is currently preparing the WAEMU Customs Code, of which only the first part has
been completed, and this came into effect on 1 January 2003 (section (2)(ii)).WT/TPR/S/119 Trade Policy Review
Page 58
(iv) Competition policy
(a) Principles of the pricing regime
98. With the initiation of the post-devaluation economic reform programme, Senegal liberalized
some controlled prices (rice, cereal flour, wheat flour).  Some key prices are still controlled
(Table III.7), for example hydrocarbons90, medical services and pharmaceuticals91;  the price of
electricity supplied by SENELEC, a State enterprise, is still controlled, whereas the price of water is
currently the subject of an agreement between the State and the concessionaire following the
privatization of the State enterprise.  The purchase and sale of pharmaceuticals is a State monopoly
that covers the fixing of margins for wholesalers and pharmacists.92
Table III.7
Products, goods and services subject to price controls, April 2003
Category Price regime in 1994 Price regime in 2003
Rice Controlled Free
Coal Controlled Controlled
Hydrocarbons Controlled Controlled
Water Controlled Subject of an agreement between the State and the
concessionaire
Electricity Controlled Subject of an agreement between the State and the
concessionaire
Approved hospitals, clinics andphysiciansControlled Controlled
Cereal flour Approval Free
Butane gas Approval Approval
Wheat flour Approval Free
Pharmaceuticals Controlled Controlled
Tariffs for transport ancillaries Approval Approval
Source: Senegalese authorities.
                                                     
90 The price of hydrocarbons is revised every four weeks according to trends in international prices.
The revision may be suspended for political reasons, as was the case in 2000 (IMF (2000a)).  Butane gas issubject to the same regime, but it is subsidized (CFAF 40,363/tonne for 6 kg bottles and CFAF 39,901/tonne for
2.7 kg bottles) because it is used by medium and lower sectors of the population for domestic purposes.  The
Senegalese authorities indicate that hydrocarbons are not subsidized.
91 The Pharmaceuticals and Medicines Directorate of the Ministry of Health, Hygiene and Prevention
keeps a list of pharmaceuticals of a social nature (for example, aspirin, penicillin) whose components and pricesare fixed at the request of the Domestic Trade Directorate of the Ministry of Small- and Medium-SizedEnterprises and Trade.
92 Ministerial Order No. 4375/MSAS/DPH of 13 June 1994 determines price adjustments for imported
products included in the pharmaceutical monopoly as follows: the selling price to the public is obtained “byadding to the wholesale price excluding taxes the c.i.f. co st (10 per cent), the local transit cost (1.5 per cent of
the c.i.f. value), the customs stamp at the official rate, and the margins for wholesalers-distributors andpharmacists”.  The latter margins are fixed as follows: for products included in the list drawn up by thePharmaceuticals and Medicines Directorate, except for those in bulk, the margin of the wholesaler-distributor is
9 per cent of the selling price to pharmacies and the pharmacist’s margin is 9 per cent of the selling price to the
public;  for products not included in the list, except for those in bulk, the margin of the wholesaler-distributor is15.5 per cent of the selling price to pharmacies and the pharmacist’s margin is 28.91 per cent of the selling priceto the public;  for products in bulk, the margin of the wholesaler-distributor is 18.02 per cent of the selling priceto pharmacies and the pharmacist’s margin is 36 per cent of the selling price to the public.Senegal WT/TPR/S/119
Page 59
Anti-competitive practices
99. Since the beginning of 2003, policy on competition in the domestic market, which was
previously the subject of a Senegalese legal regime administered by the National Competition
Commission93, has been governed by WAEMU regulations administered by the WAEMU’s
Consultative Committee on Competition.94  When this Committee starts to function, it will be assisted
by the national competition commissions (inclu ding that of Senegal), which will only have
responsibilities at the investigation stage.
100. The following anti-competitive practices are prohibited within the WAEMU: any agreement
between enterprises, joint decisions by enterprises or concerted practices among enterprises for the
purpose or having the effect of restricting or dist orting competition within the Union, as well as the
abuse of a dominant position.  The latter prohibition also covers concerted action among enterprises
(for example, the merger of two or more previously independent enterprises) which creates or
reinforces a dominant position.  The WAEMU Competition Commission may, however, declare these
provisions inapplicable if the anti-competitive practice helps to improve production or distribution of
products or promote technical or economic progress.  Conditions may be imposed on the enterprisesconcerned in order to meet those objectives.  These provisions also apply to State enterprises and
enterprises to which the member States of the WAEMU grant special or exclusive rights.
101. In order to obtain exemption from the relevant provisions or a negative attestation, the
WAEMU Competition Commission must be notified of any agreement among enterprises, joint
decisions by enterprises and concerted practices among enterprises.  In the near future, the
Commission intends to define exemptions by category in respect of specialization, research and
development or transfer of technology agreements.
102. The Commission may act ex officio  or at the request of an interested party for the purpose of
suppressing anti-competitive practices.  It may order the operators concerned to terminate the anti-
competitive practices within a specified period or impose special conditions on them for engaging in
their activities, levy fines on the enterprises concerned, or refer the cases to the WAEMU Court of
Justice with a view to bringing criminal proceedings.
(v) Subsidies and other forms of production aid
103. Senegal notified the WTO of its various subsidy regimes in 1997, without giving any details
of the amounts.
95  They are the free export enterprise, the industrial free-trade zone and the free points
regimes, and the regimes established under the Investment Code (section (4)(ii)).  The latter three
regimes were already in effect at the time Senegal first appeared before the TPRB.
104. Various pressures are being exerted within the WAEMU to reduce subsidies and production
aid.  As part of the harmonization of the legislat ion of member States of the WAEMU on taxation of
petroleum products, the member States must elimin ate direct subsidies for petroleum products within
                                                     
93 Law No. 94-63 of 22 August 1994 on pricing, competition and disputes, and Decree No. 96-343
implementing Articles 3 to 14 and 16 to 22 of Law No. 94-63.
94 Regulation No. 2/2002/CM/UEOMA on anti-competitive practices within the WAEMU and relevant
procedures, established by Regulation No. 3/2002/CM/UEMOA.
95 WTO documents G/SCM/N/3/SEN of 27 January 1997 and G/SCM/N/3/SEN/Suppl.1 of
21 November 1997. Senegal benefits from the provisions of Article 27 and Annex VII of the Agreement on
Subsidies and Countervailing Measures.WT/TPR/S/119 Trade Policy Review
Page 60
five years as from 2003.96  This prohibition does not extend, however, to direct subsidies to
enterprises which “do not distort competition”.97  It should also be noted that, since 1997, the
WAEMU has been preparing a “WAEMU Investment Charter”, but this is still pending.  This project
would reduce competition among countries by granting various benefits to attract foreign investors,
whose economic advantages are recognized as being minimal.98
105. Since early 2003, the policy on State aid within the WAEMU has been governed by WAEMU
regulations.  These will be administered by the WAEMU Consultative Committee on Competition
when it starts to function;  the Committee will also decide on matters involving anti-competitive
practices (section 4(iv)).99  These regulations have not yet come into effect in Senegal.
106. “State aid” is defined as any measure which “(i) generates a direct or indirect cost or a
reduction in revenue for the State, its components or any public or private body set up or designatedby the State for the purpose of administering the aid;  and (ii) thereby confers an advantage on certain
enterprises or certain production activities”.
100  The only aid prohibited is “State aid liable to distort
competition by favouring certain enterprises or certain production activities”.
107. A State aid programme is in principle prohibited following examination by the WAEMU
Consultative Committee on Competition.  Some State aid programmes are automatically prohibited,however, while others are allowed (Table III.8).  Member States must notify any new State aid
programme to the Consultative Committee in order to allow it to be examined;  the Committee may
also examine a programme ex officio  on the basis of information received from various sources.  If the
examination leads to a finding that the State aid programme is illegal, the prohibited programme must
be abolished because no countervailing measures are provided within the WAEMU.
                                                     
96 Directive No. 6/2001/CM/UEMOA.
97 Article 12 of Directive No. 6/2001/CM/UEMOA.
98 IMF (2001b).
99 Regulation No. 4/2002/CM/UEMOA.
100 Article 1 of Regulation No. 4/2002/CM/UEMOA.  See also Article 1 of the WTO Agreement on
Subsidies and Countervailing Measures.Senegal WT/TPR/S/119
Page 61
Table III.8
Categories of State aid programmes under WAEMU regulations
Status
Inconsistent with the
common market without
the need for anexamination- Subject to the performance of exports to other member States;
- Subject to the use of domestic products in preference to products imported from other member States.
Consistent with the
common market withoutthe need for an
examination- Social programmes directed at individual consumers provided that they are granted without
discrimination as to the origin of the products;
- Intended to remedy damages caused by natural disasters or other extraordinary events;
- Intended to promote the carrying out of a major project of community interest or to remedy a serious
upheaval in the economy of a member State;
- Research activities conducted by enterprises or higher education or research establishments that have
contracts with enterprises if the aid covers a maximum of 75 per cent of the cost of industrial research or
50 per cent of the cost of pre-competitive development activities;
- Intended to promote the adaptation of existing installations to new environmental rules imposed by the
legislation and/or regulations which imply greater constraints on enterprises and a heavier financial
burden, provided that the aid:  (i) is of a temporary nature and is not repeated;  and (ii) is restricted to20 per cent of the cost of adaptation;  or
- Intended to promote culture and conservation of the heritage when it does not restrict competition in a
significant part of the common market.
Source: WTO Secretariat based on Regulation No. 4/2002/CM/UEMOA.
(vi) Government procurement
(a) Overview
108. Senegal’s government procurement policy was entirely revised in 2002.101  T h i s  w a s
prompted by the evolution of the economic environment and the authorities’ desire to establish a
regime consistent with the Model Law on Procurement of Goods, Construction and Services of the
United Nations Commission on International Trade Law (UNCITRAL), adopted in 1994.102  Senegal
is not party to the WTO Plurilateral Agreement on Government Procurement;  it is not an observer
and does not intend to become one.
109. The Government Procurement Code covers procurement on behalf of the State, local
authorities and public establishments, as well as State-owned companies and public limited companies
in which the State has a majority holding.  The latter two categories were not covered under the
previous regime and, consequently, the new Code has broader scope.  The other important changes in
the new Code are simplified procedures, greater transparency, rapidity and efficacy of procedures,new dispute settlement procedures, and new sanctions against persons committing offences in the
course of tendering for or executing government procurement contracts (Table III.9).  Regarding
efficacy, the new Code abolishes direct orders and makes procurement subject to the principles of
publicity and competition, and contracts must be awarded to qualified candidates making the lowest
bid.  Contracts are subject to control of the tendering procedure and execution and of the quality of thesuppliers chosen.
                                                     
101 Law No. 2002-50 of 30 May 2002, which replaces Decree No. 82-690 of 7 September 1982.
102 http://www.uncitral.org/english/texts/procurem/ml-procure.htm [10 January 2003].WT/TPR/S/119 Trade Policy Review
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Table III.9
New features of the reform of government procurement on behalf of the State, local authorities or public establishments in Sene gal
Subject Government Procurement Code (2002)
Raising the threshold - From CFAF 10 million to 15 million for procurement of supplies;
- From CFAF 10 million to 25 million for procurement of construction works and supply of services.
Criteria for taking part in
the competitionPreviously, a bid was rejected if some administrative document was missing before the bidding was opened.
At present, the candidate must submit the administrative document omitted before the definitive attributionof the contract.
Decentralization Replacement of the National Examination Commission (CND),which had responsibility for provisional
award of procurement contracts, by a regional procurement commission.
Authority to approvecontractsDelegation to the ministers who approve contracts awarded by their services for amounts of CFAF 50
million or less.
The threshold above which approval must be by the Prime Minister has been raised from CFAF 200 million
to 300 million.
The Minister responsible for Finance approves contracts for amounts ranging from CFAF 50 million to
300 million.
Transparency ofproceduresClarification of the conditions applying to the various methods of awarding contracts: invitations to tender
(open or selective), adjudication and mutual agreement or direct understanding.
Fairness The supplementary services under one or more clauses must not exceed 25 per cent of the volume of those
covered by the original contract or 50 per cent of its amount.
A person awarded a procurement contract may not subcontract the entire contract.  He may subcontract the
execution of certain parts of the contract up to an amount of 40 per cent of the contract subject to prior
agreement by the contracting agency.
Rapidity A time-limit is imposed on the CNCA, which must take a decision within 15 days of the date of
acknowledgment of receipt of the file.  If the CNCA has not given its opinion at the expiry of this time-limit, the contracting authority may request approval by the Prime Minister.
The CNCA must also take a decision within a maximum period of three days concerning the restricted list
of enterprises to be consulted in the case of selective invitations to tender.
Efficacy Procurement is subject to the principle of publicity and competition and the contracts must be awarded to
qualified candidates that make the lowest bid.
In order to lessen the risk of awarding contracts to enterprises that are not qualified or not sufficiently
qualified, the enterprises concerned must submit a statement attesting to their classification and category.
The Prime Minister may set up an interministerial commission in each region to coordinate certain orders by
the State so as to benefit from the advantages afforded by centralizing purchases.
Settlement of disputes Differences or disputes related to the execution or award of procurement contracts are settled under two
types of procedure:  mutual agreement;  legal proceedings.
Control The CNCA and the CRCAs, on the one hand, and the internal control commission in each entity awarding a
procurement contract, on the other, are responsible for control.
Sanctions Public officials guilty of offences by having obtained or tried to obtain an undue advantage from a co-
contractor or failing to ensure sufficient publicity, or by not issuing an invitation to compete in conformity
with the regulations, are liable to the sanctions laid down in the law establishing the Court of Audit.
Article 182 of the Decree provides that persons tendering for a contract are liable to punitive measures in
cases of corruption.
In addition, entities awarding procurement contracts may decide to exclude a co-contractor from
procurement in general if he has committed an offence in the execution or award of procurement contracts
(Article 185).
Source: WTO Secretariat based on information provided by the Ministry of Finance of Senegal, “ Les innovations de la
réforme des marches publics du Sénégal ”.  Available at:  http://www.minfinances.sn/reglmp0.html
[16 December 2002].
(b) Procedure for awarding contracts
110. The Code sets the new thresholds for compulsory tendering for procurement contracts
(Table III.10).  The Code provides for three methods  of awarding procurement contracts: invitation toSenegal WT/TPR/S/119
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tender, adjudication and mutual agreement or direct understanding.  In all cases, the contracting
authority, by means of a written consultation with at least five persons, must ensure that candidates
capable of fulfilling the contract compete.  The conclusion of a contract by mutual agreement without
a competition is no longer allowed except in cases where competition is absolutely impossible
(monopoly, patent, secret).
111. Basic information concerning the contract – content, method of award, invitation to tender –
must be published in the Journal Officiel , but it does not appear on the Internet.  The contracting
authority must specify the criteria used to assess the bids in the invitation to tender so that all
candidates possess the same information regarding the methods used to assess and compare their bids.
The criteria used to assess bids must be quantifiable in monetary terms.
112. The Code includes a preference policy:  10 per cent to enterprises under Senegalese law for
construction contracts subject to invitation to tender;  10 per cent to suppliers of products of
Senegalese origin or manufacture or in the case of contracts for supplies or services awarded
following an invitation to tender;  participation in invitations to compete and in contracts for services
and supplies awarded by direct understanding and financed under the national budget is limited to
enterprises established in Senegal, except where international agreements apply in the case ofsupplies, work or services that cannot be provided or carried out by local enterprises.
Table III.10
Procedures for awarding government procurement contracts
Subject Government Procurement Code (2002)
Threshold for mandatory
award of contracts- CFAF 15 million (€23,400) for contracts for supplies awarded on behalf of the State of Senegal, local
authorities, public establishments;
- CFAF 25 million (€39,000) for contracts for work or the supply of services awarded on behalf of the State
of Senegal, local authorities, public establishments;
- CFAF 30 million (€46,800) for contracts for supplies, work or the supply of services awarded on behalf of
State-owned companies and public limited companies with a majority State holding.
Invitation to tender - Open;
- Selective if the supplies, work or services can only be provided by a limited number of suppliers or
entrepreneurs or if the estimated amount of the contract is less than CFAF 50 million;
- Open, preceded by pre-selection (the so-called “prequalification” procedure);- With a competition, when the contracting authority has drawn up a project whose execution will be the
subject of a subsequent contract;
- In two stages, when candidates make technical bids without prices, giving the contracting authority the
possibility of discussing them, followed by an invitation to submit comprehensive bids showing the prices
corresponding to the specifications.
Authority for approval Contracts for work, supplies or services to the State:
- The Prime Minister where the amount is CFAF 300 million (€468,000) or more or where the contract hasbeen the subject of an unfavourable opinion by the National or Regional Government Contracts Commission;
- The Minister responsible for Finance when a favourable opinion has been received from the National
Government Contracts Commission and the amount is CFAF 50 million (€78,000) or more but does not
exceed CFAF 300 million (€468,000);
- The contracting minister when the contract has been the subject of a favourable opinion by the National
Government Contracts Commission and the amount is CFAF 30 million (€46,800) or more but does notexceed CFAF 50 million (€78,000);
Table III.10 (cont'd)WT/TPR/S/119 Trade Policy Review
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Subject Government Procurement Code (2002)
- The governor of the region when a favourable opinion has been given by the Regional Government
Contracts Commission and the amount is less than CFAF 30 million (€46,800), with the exception of the
region of Dakar, where the approval of procurement contracts is the responsibility of the contractingminister.
Contracts awarded on behalf of public establishments:
- The Prime Minister where the amount is CFAF 150 million (€234,000) or more or where the contract is thesubject of an unfavourable opinion by the competent Government Contracts Commission;
- The chairman of the governing board where the amount is CFAF 50 million (€78,000) or more but does not
exceed CFAF 150 million (€234,000);
- The director general of the public establishment where the amount does not exceed CFAF 50 million
(€78,000).
Contracts awarded on behalf of State-owned companies and public limited companies in which the State has
a majority holding:
- The director general of the company irrespective of the amount.
Source : WTO Secretariat, on the basis of Law No. 2002-50 of 30 May 2002.