RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/AND/3
4 March 1999
(99-0824)
Original:  French
WORKING PARTY ON THE ACCESSION OF ANDORRA
Memorandum on the Foreign Trade Regime
In a communication dated 4 July 1997 (WT/ACC/AND/1) the Government of the Principality
of Andorra applied for accession under Article XII of the Agreement Establishing the World Trade
Organization (WTO).  The terms of reference of the Working Party are also contained in documentWT/ACC/AND/2.
The memorandum on Andorra's foreign trade regime is reproduced below.In accordance with procedures (WT/ACC/1), Members are invited to communicate to the
Secretariat any questions they may wish to put concerning the matters dealt with in the Memorandum
by 16 April 1999 for transmission to the authorities of Andorra.WT/ACC/AND/3
Page ii
TABLE OF CONTENTS
Page
I. INTRODUCTION:  GENERAL OBJE CTIVES OF T RADE POLICY .............................1
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................2
1. Economy ...................................................................................................................... ..............2
(a) General de scrip tion ......................................................................................................... ............2
(b) Current econom ic situ ation.................................................................................................. .......4
2. Economic policies............................................................................................................ ..........5
(a) Main directions of  economic policies........................................................................................ .5
(b) Monetary and fi scal policies ................................................................................................ .......6
(c) Foreign exchange an d payments system.....................................................................................7
(d) Foreign and domestic investment policies..................................................................................7
(e) Competition policie s ........................................................................................................ ...........8
3. Foreign trade in goods and services ........................................................................................8
(a) Volume and value of trade................................................................................................... .......8
(b) Trade by geographic areas and dynamics of trade......................................................................9
(c) Accompanying statistical data and inform ation on publications (Annex 1 refers)...................11
4. Domestic trade in services, including value and composition of foreign direct
investment..................................................................................................................... ...........11
5. Information on financial movements related to nationals working abroad,
remittances , etc............................................................................................................... .........11
6. Information on growth in trade in goods and services over recent years and
forecasts for ye ars to come.................................................................................................... .11
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES .........................................13
1. Powers of executive, legislative and judicial branches of government...............................132. Government entities responsible for making and implementing policies affecting
foreign trade .................................................................................................................. ..........14
3. Division of authority between the central government and local authorities
(Communes ) .............................................................................................................................1 4
4. Any legislative programmes or plans to change the regulatory regime.............................15
(a) Regime applicable to impor t and export tr ansactions...............................................................15
(b) Export promo tion measures ................................................................................................... ...16
(c) Foreign tr ade cont rols ...................................................................................................... .........16
(d) Domestic tr ade cont rols..................................................................................................... .......16
5. Laws and legal acts (Annex 2 refers).....................................................................................16
6. Description of tribunals..................................................................................................... .....16
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................17WT/ACC/AND/3
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1. Import re gulation............................................................................................................ ........17
(a) Registration requirements for engaging in  importing...............................................................17
(b) Characteristics of national tariff.......................................................................................... ......18
(i) Agricultura l pro ducts....................................................................................................... .........18
(ii) Industria l products........................................................................................................ ............19
(c) Tariff quotas, ta riff exemptions ............................................................................................ ....19
(i) Tariff quotas............................................................................................................... ...............19
(ii) Tariff e xemptions .......................................................................................................... ............20
(d) Other duties and charges, specifying  any charges for se rvices re ndered..................................20
(i) Agricultural products under HS Chapters 1-24........................................................................20
(ii) Industrial products under HS Chapters 25-97..........................................................................20
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems...........20
(i) National provisions......................................................................................................... ..........20
(ii) Provisions under the EC-Andorra Agreement..........................................................................21
(f) Import licensing  procedures................................................................................................. .....22
(g) Other border measures, e.g. any other schemes that have border effects similar to
those of the measures li sted under (e) above ............................................................................22
(h) Customs valuation........................................................................................................... ..........22
(i) Other custom s formal ities................................................................................................... ......22
(j) Preshipment  inspection ...................................................................................................... .......22
(k) Application of intern al taxes on imports ...................................................................................2 3
(l) Rules of  origin ............................................................................................................. .............23
(m) Anti-dumpi ng regime......................................................................................................... .......24
(n) Countervailin g duty regime .................................................................................................. ....24
(o) Safeguard  regime ............................................................................................................ ..........24
2. Export Regulation............................................................................................................ .......24
(a) Registration requirements fo r engaging in exporting ...............................................................24
(b) Customs tariff nomenclature, types of duties, duty rates, weighted averages of rates..............25
(c) Quantitative export restrictions, including prohibitions, quotas and licensing systems ...........25(i) National provisions......................................................................................................... ..........25
(ii) Provisions adopted pursuant to the EC-Andorra  Agreement ...................................................25
(d) Export licensing  procedures................................................................................................. .....25
(e) Other measures, e.g. minimum export prices, voluntary export restrictions, orderly
marketing a rrangem ents......................................................................................................... ...25
(f) Export financing, subsidy and promotion policies....................................................................26
(g) Export performan ce requir ements............................................................................................. 26
(h) Import duty drawback schemes ................................................................................................
26
3. Internal policies affectin g foreign trade in goods.................................................................27WT/ACC/AND/3
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(a) Industrial policy, includ ing subsidy policies ............................................................................27
(b) Technical regulations and standards, including measures taken at the border with
respect to  impor ts............................................................................................................. .........27
(c) Sanitary and phytosanitary measures, including measures taken with respect to
impor ts ........................................................................................................................ ..............27
(d) Trade-related in vestment measures........................................................................................... 28
(e) State-tradi ng pract ices..................................................................................................... ..........28
(f) Free z ones .................................................................................................................. ...............28
(g) Free econom ic zones......................................................................................................... ........28
(h) Trade-related envi ronmental po licies .......................................................................................2 8
(i) Mixing re gulatio ns.......................................................................................................... ..........29
(j) Government-mandated count er-trade and barter ......................................................................29
(k) Trade agreements leading to c ountry-specific quota  allocation................................................29
(l) Government procur ement pract ices ..........................................................................................29
(m) Regulation of tr ade in tr ansit.............................................................................................. .......30
4. Policies affecting foreign tr ade in agricultu ral products.....................................................30
(a) Imports – i.e. comprehensive description of the types of border protection maintained ..........31
(b) Exports – i.e description of the budgetary expenditure and any revenue foregone
involved in each of the expor t subsidy measur es in place ........................................................31
(c) Export prohibitions  and rest rictions........................................................................................ ..31
(d) Export credits, export credit guar antees or insura nce programmes ..........................................31
(e) Internal polices - i.e. description of, and the budgetary expenditure and any revenue
foregone involved in each of the dome stic support measur es in place.....................................31
5. Policies affecting foreign trade in oth er sectors ...................................................................32
(a) Textile s regime............................................................................................................. .............32
(b) Policies affecting foreign tr ade in other ma jor sectors .............................................................32
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................32
1. General...................................................................................................................... ...............32
(a) Intellectual property policy................................................................................................ .......32
(b) Responsible agencies for policy formulation and im plementation...........................................33
(c) Membership of international intellectual property conventions of regional or bilateral
agreem ents ..................................................................................................................... ...........33
(d) Application of national and MFN treatment to fore ign nati onals.............................................33
(e) Fees and taxes .............................................................................................................. .............33
2. Substantive standards of protection, in cluding procedures for the acquisition
and maintenance of intelle ctual property rights ..................................................................34
(a) Copyright and related rights, including rights of performers, producers of
phonograms and broadcasting organizations ............................................................................34
(b) Trademarks, includ ing service marks .......................................................................................34WT/ACC/AND/3
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(c) Geographical indications, includ ing appellations  of origin ......................................................35
(d) Industrial designs .......................................................................................................... ............35
(e) Pat ents..................................................................................................................... ..................35
(f) Plant variet y protection.................................................................................................... .........35
(g) Layout designs of integrated circuits ....................................................................................... .35
(h) Requirements on undisclosed information, including trade secrets and test data.....................35
(i) Any other categories of  intellectual property............................................................................35
3. Measures to control abuse of intellectual property rights (for the Trademark
Law) ........................................................................................................................... ..............35
4. Enforcement .................................................................................................................. ..........35
(a) Civil judicial proced ures and remedies.....................................................................................3 5
(b) Provisional  measures ........................................................................................................ ........36
(c) Any administrative pro cedures and remedies ...........................................................................36
(d) Any special bo rder measures ................................................................................................. ...36
(e) Criminal procedures......................................................................................................... .........36
5. Laws, decrees, regulations and other legal acts relating to the above................................36
6. Statistical data on applications for and grants of intellectual property rights, as
well as any statistical data  on their en forcement .................................................................36
VI. TRADE-RELATED SE RVICES RE GIME .........................................................................36
1. General introduction and description of the regulatory structure of the services
sectors........................................................................................................................ ...............36
(a) General description of the overall market structure..................................................................36
(b) Regulatory structure of the most  prominent servic es sectors ...................................................37
2. Policies affecting trade in services......................................................................................... 48
(a) Government departments, agencies, profes sional associations or other bodies with
authority or a role relevant to th e conduct of serv ice activi ties ................................................48
(b) Judicial, arbitral or administrative tribunals  or procedures providing for the review of,
or remedies in relation to, administrative  decisions affecting trade in services........................48
(c) Provisions concerning qualification requirements and procedures, technical standards
and licensing and/or registration requir ements for the suppl y of services................................49
(d) Provisions governing the existence and operations of monopolies or exclusive service
supplie rs...................................................................................................................... ..............49
(e) Provisions relating to safeguard measures  as they apply to trade in se rvices...........................50
(f) Provisions relating to international transfers and payments for current transactions of
services....................................................................................................................... ...............50
(g) Provisions relating to capital transac tions affecting the s upply of se rvices..............................50
(h) Provisions governing the procurement by  governmental agenci es of services.........................50
(i) Provisions concerning any form of aid, grant, domestic subsidy, tax incentive or
promotion scheme affectin g trade in servic es...........................................................................50
3. Market access and national treatment..................................................................................50WT/ACC/AND/3
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(a) Limitations on the number of service suppliers........................................................................50
(b) Limitations on the total value of service transactio ns or assets ................................................51
(c) Limitations on the total number of service operations or on the total quantity of
service output................................................................................................................. ...........51
(d) Limitations on the total number of natural persons that may be employed in a
particular se rvice se ctor ...................................................................................................... ......52
(e) Restrictions on, or requirements of specific types of legal entity through which a
service may be  supplied........................................................................................................ ....52
(f) Limitations on the participat ion of foreig n capital....................................................................53
(g) Measures providing for less than the tr eatment accorded to national services or
service s uppliers.............................................................................................................. ..........53
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................53
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade
in services (Annex 8A refers) .................................................................................................5 3
2. Economic integration, customs union and free-trade area agreements (Annex 8B
refers) ........................................................................................................................ ...............53
3. Labour markets inte gration agreements ..............................................................................57
4. Multilateral economic cooperation, membership in the multilateral economic
organizations, trade-related programmes of other multilateral organizations.................57
ANNEXE S ........................................................................................................................ ....................58
ANNEX 1 ........................................................................................................................ ......................59
1. Foreign trade statistics for goods a nd services;  responsible agencies ...............................59
2. Publications rela ted to st atistics ........................................................................................... .59
3. Statisti cal data............................................................................................................. ............59
(a) Main economic in dicators 1997............................................................................................... .59
(i) GDP 59
(ii) GDP per ca pita (P tas) ...................................................................................................... ........60
(iii) Production and consump tion of basic goods ............................................................................60
(iv) Budget:  budgetary trends  for the period 1982-1998 ...............................................................61
(v) Annual changes in prices, 1997.............................................................................................. ..62
(vi) Employment in different sectors............................................................................................ ....63
(vii) Levels of employment...................................................................................................... ..........64
(viii) Currency resources....................................................................................................... ............64
(ix) Balance of payments ........................................................................................................ .........64
(x) Trade balance 1995-1998..................................................................................................... ....64
(xi) Import volumes and value at  1985 prices, years 1976-1998 ....................................................64
(b) Foreign trade st atistics (1995-1998) ........................................................................................ .65
(i) Export st atistic s........................................................................................................... ..............65
(ii) Import statistics, breakdown............................................................................................... ......67WT/ACC/AND/3
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(iii) Imports by c ountry of origin .............................................................................................. .......70
(iv) Imports from main suppliers, pr eferably at a tari ff line l evel...................................................71
(v) Trade by geographic areas (main trade partners, exports by Chapter)...................................73
(c) Government procurement statistics, in Ptas..............................................................................75
ANNEX 2 ........................................................................................................................ ......................76
1. List of laws regulating the acti vity of the custom s authorities............................................76
2. Non-tariff regulati on of imports............................................................................................7 6
3. Non-tariff regulati on of exports............................................................................................. 76
4. Laws and regulations relating to foreign investment in the Principality of
Andorra........................................................................................................................ ............76
5. Other laws dealing with economi c issues that a ffect trade..................................................77
6. Texts of laws on the judicial structure in Andorra..............................................................77
7.
(a) Existing laws, regulations or administrative guidelines which significantly affect
trade in se rvices . ............................................................................................................. ..........78
(b) Publications or sources of information concerning measures of general application, of
relevance to the GATS.......................................................................................................... ....78
(c) Enquiry points, if any, as forese en in Article III of the GATS. ................................................78
ANNEX 3 ........................................................................................................................ ......................79
List of Abbreviations
ACP: Africa, Caribbean and Pacific States
CAP: Common Agricultural PolicyCCT: Common Customs Tariff
CN: Combined Nomenclature
DV1: Customs Value DeclarationEC: European CommunitiesEEA: European Economic AreaEFTA: European Free Trade Association
EMS: European Monetary System
EU: European CommunitiesFEDA: Electric Power of AndorraGSP: Generalized System of PreferencesHS: Harmonized SystemIMI: Indirect Tax on Goods
INAF: Andorran National Finance Institute
ITU: International Telecommunications UnionLPG: Liquified Petroleum GasMFN: Most Favoured NationORTA: Andorran Radio and Television OrganizationOSCE: Organization for Security and Co-operation in Europe
RA: Implementing Regulations
STA: Andorran Telecommunications ServiceTARIC: Integrated Tariff of the European CommunitiesUNESCO: United Nations Educational, Scientific and Cultural OrganizationWHO: World Trade Organization
WIPO: World Intellectual Property OrganizationWT/ACC/AND/3
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I. INTRODUCTION:  GENERAL OBJECTIVES OF TRADE POLICY
The globalization of the economy has compelled countries to face up to radical changes that
call into question their competitive position.  The development of high technology products during the
Third Industrial Revolution has fundamentally changed telecommunications, financial services and
information technology.  Globalization, relocation and the liberalization of markets have obliged
countries to find their place in the new global trade order.  The European Union and the United States
of America are experiencing a period of strong growth, with interest rates at a historically low level, abalance in public finance and a strong presence in global trade.  To achieve this, they have had to
adapt, modernize and create new ways of encouraging the sustained growth of their economies.
At a time when international trade relations are continuing to evolve, a small country like the
Principality of Andorra has to find its place in global trade.
Andorra does, however, have solid foundations in its trade policy and these will be decisive
for its future and facilitate its economic expansion.
The first step has been to strengthen the trad e links between Andorra and Europe through the
signature of the EC-Andorra Trade Agreement in 1990, which entered into force in 1991.  The
Agreement underlines Andorra's desire to draw closer to Europe and has given it a stable legalframework for the major part of its international trade.  Nevertheless, the Agreement cannot be the
only response that will protect Andorra from future trade uncertainties.
The fifteen-member European Union is becoming indissolubly integrated, it is moving
towards ever-greater homogeneity in the economic, monetary and fiscal sectors.  The single market isbecoming stronger with the removal of borders and all trade obstacles.
For Andorra, this means adapting to the new context.  Although Andorra is undeniably part of
Europe because of its geographical situation, the structure of its foreign trade and the composition of
its working population, it intends to maintain its special trade features, while at the same time findingits place in a broader but also more stable trade sphere without renouncing its historic heritage built up
over its 719 years of existence.
No country can remain outside globalization.  Andorra will not be an exception and, like any
small country, it has to adopt a global vision of the economy.  This is why it wishes to accede to theWorld Trade Organization in order to extend its trade scope, keep abreast of international trade trends
in order to confront them and so be able to identify  specific areas of growth.  It would thus be able to
rely on solid principles for the restructuring of its economy, develop its comparative advantage and
find its place in the international context.
In an increasingly complex global economy and a more competitive environment, Andorra
wishes to adapt as far as possible, taking a proa ctive rather than reactive stand, anticipating change
and participating actively in international trade.
The WTO will give Andorra tools to defend itself against the complex interplay of global
trade and will ensure that any disputes are settled on the basis of equity.
Andorra has already embarked on the necessary reforms of its economic structure, but this
cannot be done hastily.  From the constitutional point of view, Andorra is a young country and its
legislative basis is gradually expanding;  accession to the WTO will allow it to consolidate the
reforms initiated.
Although Andorra is not a member of the WTO, openness has always governed all its trade
relations.  Andorra is a country of liberty and the migrant population has always found work in this
host country, as well as ideals and a high degree of personal freedom.  Andorra accepts and appliesWT/ACC/AND/3
Page 2
the principles of an open economy.  Since the 1950s, it has gradually become a trade centre for the
Pyrenees valleys and its example has highlighted the economic development possibilities afforded byopen trade.
This tradition of openness is clearly shown by the place occupied by imports in the gross
domestic product, approximately 80 per cent in 1997.
Andorra aims to diversify its trade by developing exports.  It wishes to reaffirm its special
character by going beyond the concept of physical frontiers on which its advantages have been based
for so long and which were the reason for its special attractions.
Finally, Andorra considers that the multilatera l negotiating forum provided by the WTO will
advance and facilitate the achievement of the foreign trade objectives it has set, even though it realizes
that acceding to the WTO is not a solution to all its problems but rather an effective tool that willallow it to act in the most appropriate way.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description
The Principality of Andorra is a landlocked European country in the Pyrenees mountain chain
situated between Spain and France, both members of  the European Union, with which it shares 64 km
of border to the south and west and 57 km to the north respectively.  The capital is Andorra la Vella,
the most heavily populated of the seven parishes.
1  It covers a small area of 464 km2, although this is
larger than that of some other European countries such as San Marino (61 km2), Liechtenstein
(157 km2) or the Principality of Monaco (1.5 km2).
Of this small surface area, only 4 per cent is arable land and 1 per cent is urban area.  The
remainder consists of forests, pastures and land that is not cultivable because it is too mountainous.
The climate and the mountainous relief make communication difficult and above all raise the cost ofinvestment in the road infrastructure.
Andorra has a dry Mediterranean climate.  Water is one of the most abundant natural
resources and allows the exploitation of spas and aquaparks and hydroelectric power.
The State's official language is Catalan, although Spanish and French are widely used because
of Andorra's close economic and social links with neighbouring States;  English is also used in the
commercial and financial sector.
Andorra does not have its own currency, but traditionally the State budget has been submitted
in Spanish currency (Pesetas).  All other curren cies, including the French franc, circulate freely.
Currency exchange is free and there are no restrictions on monetary transactions with other countries.
Andorra's population is 65,306 (1997 figu res) and the population density is
141 inhabitants/km
2.  There has been sustained growth in the population since the 1960s.
                                                     
1 The traditional territorial entity in Andorra.WT/ACC/AND/3
Page 3
Chart 1:  Breakdown of the population by nationality, 1997
Andorran nationals account for just over 30 per cent of the population and the majority is
composed of Community residents, mainly Spanish nationals (see chart above).
From 1981 to 1991, Andorra's annual demographic growth was 4.6 per cent, mainly as a
result of immigration.  Andorra is a host country in which the number of foreign residents exceeds the
number of Andorran nationals.  The high level of immigration is due to a scarcity of labour in sectorssuch as building and the hotel industry, which grew significantly in the 1980s.
Andorra's economic specialization is a result of trends in the neighbouring countries, France
and Spain.  Until the 1950s, the economy was mainly directed towards agriculture and livestock
rearing.  Two world wars and the Spanish Civil War meant restrictions and the application ofprotectionist policies in these countries so in Andorra there was demand for products that were not
available in France or Spain.  This situation and the lack of natural resources incited the creation of a
services sector based on trade and services to visitors, neglecting production and processing activities.
In recent decades, the development of tourism has led to sustained growth.  Although the
financial sector is important, tourism and trade continue to be the main sources of wealth, attracting
10 million visitors each year.
As regards economic indicators, in-depth macroeconomic analysis is difficult because
Andorra does not yet have any real national accounting facilities and trends are based on extrapolated
estimates.
The research department of the Ministry of Finance estimated the gross domestic product per
capita in 1997 to be around Ptas 3,208,776 (C
19,285.132)2.  It is thus between those of Spain and
France.  This estimate was made on the basis of Andorra's total sectoral payroll and the GVA3/wages
coefficients in Catalonia.  For a few sectors, the research department had accounting data that allowed
it to calculate the sector's GVA directly without extrapolation.  This was the case for the agriculturaland financial sectors and for the production and distribution of tobacco.
                                                     
2 Exchange rate used:  Ptas 1000 = C 6.01.
3 Gross value added.Spanish
43.67%Others
6.55%
Portuguese
10.69%Andorran
32.31%
French
6.77%WT/ACC/AND/3
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For 1998, the inflation rate was 1.62 per cent, slightly above the European average and close
to Spain's inflation rate for the same year (1.4 per cent).
(b) Current economic situation
Sectoral analysis shows that the year 1997 was marked by widespread dynamism in all
sectors.  There was a rise not only in the number of people employed but also in the number of
enterprises.
Turning to the trend in the major sectors, services was one of the most vigorous sectors (a
4 per cent increase in the number of people employed and the creation of 43 new companies out of the
662 in Andorra).
In recent years, this sector has shown an upward trend.  In the area of investment, the
strongest growth was in the hotel sector.
In 1997, the tourism sector (tourist services, shops, the hotel industry) employed 10,697
people, representing over 36 per cent of the wage-earning population.  If services, finance and
insurance, the professions and the administration are added, in 1997, the tertiary sector accounted for
over 73 per cent of wage earners in Andorra.
The trade sector stagnated in 1995 and 1996, but 1997 saw a recovery that appears to be
confirmed in 1998.
Regarding leisure activities, in addition to sk iing, a combined spa and aquapark has opened
thus ensuring a constant flow of tourists throughout the year.  Improvements to the winter sports
infrastructure have helped to increase the total number of ski passes sold.   Under this heading, during
the 1992-93 season revenue of Ptas 1,502 million (C 9.02 million) was earned and in 1996-97 the
figure was Ptas 1,945 million (C 11.68 million).
Andorra's financial sector, which is mainly composed of the banking sector, yields a large
part of its revenue.  In 1997, it employed 1,276 people, i.e. 4.5 per cent of the total wage-earning
population (974 people in 47 banking institutions).
On 31 December 1997, total assets for all banks amounted to Ptas 1,726.3 billion
(C10.37 billion).  Fixed-term deposits are the major element on the liabilities side.  Andorran banks
take deposits in all convertible currencies.  An essential counterpart to this liquidity is interbank loans.
The development of Andorra's banking sector is not only due to the country's macroeconomic
situation but also to Andorra's special advantages such as the long tradition of reliability and customer
services.
The industrial sector is composed of primary industries (generation of electricity, mining of
stones and timber processing), construction (bui lding firms), and processing industries (tobacco
manufacturing, textile and furniture industries, manufacture and distilling of alcohol, coffee roasting,
graphic arts), which in 1997 comprised 314 firms employing 5,952 people, equivalent to 20.46 per
cent of the total wage-earning population.  The building industry is directly related to tourism and
migratory flows and is the most developed industrial activity, employing 79 per cent of wage earnersin the industrial sector.  There has, however, been a slight fall in the figures for this activity:  the total
area for which building permits were issued decreased from 175,018m
2 in 1996 to 124,924m2 in 1997.
In 1989, the figure was 411,675m2, but this gradually declined to one of the lowest levels seen over
the past ten years.  Tobacco is another important activity in this sector.  Five factories employ around
400 people (7 per cent of wage earners in the sector).  The performance of the processing industry wason average satisfactory in 1997 and after several years of decline employment rose by 1.6 per cent.WT/ACC/AND/3
Page 5
The labour market is also illustrative of the economic situation.  The figures for the number of
workers belonging to the CASS (social security fund) give an idea of the sectoral structure ofemployment in Andorra, its development and trends.  The construction industry, tourism and the hotel
industry showed the highest growth between 1997 and 1998.
For 1998, the inflation rate was 1.62 per cent, a figure that is far from the Community
average.
The main reasons for this rate were the reduction in the price of fuel, the rent freeze and the
decrease in electricity charges in 1997.  The price of services, on the other hand, rose by 3.38 per cent,
well above the rate of inflation.
Even though the rate of increase in the average salary paid to wage earners in 1998 was
3.1 per cent, less than the figure for the majority of Community countries and the figures for thepreceding years, 5.1 per cent in 1996 and 3.3 per cent in 1997, the downward trend in the increase in
salary costs was much more accentuated in 1998.
Furthermore, employment rose to a marked extent in 1998, 5.8 per cent.  This indicates that,
despite the sharp fall in activity in the tobacco industry and in the agricultural sector, overalleconomic activity improved considerably.
Although there are no 1998 figures for the GDP comparable to those for 1997, indicators as a
whole show overall economic growth that exceeds the average in countries of the Community.  The
substantial contribution made by the construction and services sectors to this growth offsets the dropin employment in agriculture and processing industries.
2. Economic policies
(a) Main directions of economic policies
The main directions of Andorra's policies adhere to its tradition as a country where private
initiative is the driving force for economic progress and where the State only intervenes indirectly to
exercise a positive influence on the country's economic development.
In such a framework, only a competitive economy could provide the foundation for lasting
success.  In key sectors, therefore, the Principality of Andorra endeavours to implement policies thatwill help it to restructure.
Trade policy is Andorra's most important economic policy.  The Principality does not only
aim to improve the supply of goods and services, but also to smooth the transition from an export
regime based solely on tourism sustained by a duty-free system (guaranteed by the EC-Andorra
Agreement) to a policy that promotes the creation of enterprises for the processing of goods and the
supply of services.
Efforts focus on two key sectors, tourism and trade.Tourism is still the main income-generating activity and is one of the priority sectors when
drawing up sectoral policies.  In order to maintain and strengthen its competitiveness in this sector,Andorra intends to undertake action at the sectoral level, for example, by promoting Andorra as the
best winter sports centre, notably because it has the largest skiable area in the Pyrenees and a wide
choice of accommodation.  These natural advantages and the infrastructure provide the basis for
extending the tourism season into the summer.WT/ACC/AND/3
Page 6
The lack of infrastructure other than roads means that traffic congestion can dissuade tourists
from visiting the Principality.  Andorra therefore intends to improve its communication links in order
to ease the traffic congestion.
In order to provide transparency and improve quality, a special system classifying tourist
establishments in Andorra by quality standards ha s just been approved and priority given to the
classification of hotels.  Enhancing the legal framework and making information transparent arepriorities in the tourism sector.
In addition, a monthly parametrized survey of tourists has been introduced.  It will show how
tourists spend their money, what their preferences are and also provide other data in order to direct
tourism policy better.
As regards trade, the strategy followed is to define the most attractive sectors in harmony with
the objectives set for the tourism sector.  The aim is to supply innovative and high-quality products.
The policies envisaged focus inter alia  on better training of human resources, planning of the urban
environment and commercial zones.
The Government also seeks to implement an appropriate agricultural policy because it is
aware of the key role played by the primary sector in conserving the countryside and managing the
mountainous areas.  One priority is to draft an agricultural law.  Its objective will be to improve the
structure and productivity of farms and to develop quality products, while at the same time
encouraging environmentally-friendly agriculture.
The Government has adopted a non-interventionist stance as regards pricing policy.  Products
such as bread and fuel are, however, subject to controlled prices.  The Government also controls the
price of school transport, health services, telecommunications and electricity services.
An increase in the minimum wage is determined in relation to economic policy objectives, but
it also has an effect on wages in all sectors.  Since 1998, Andorra has had a consumer price index,
which is used to update rents.
The policy followed is to allow a moderate increase in overall price levels while at the same
time respecting free competition.
As regards budgetary policy, in recent years Andorra has tried to achieve a balance between
income and expenditure.  Because of the importance of the tourism sector, Andorra's public
expenditure is mainly on the infrastructure, health services, education and civil defence.
(b) Monetary and fiscal policies
Because the Principality of Andorra does not have its own national currency, monetary policy
is restricted.  Nevertheless, the Andorran National Finance Institute (INAF), which is a public law
body with its own legal status and an autonomous structure, is responsible inter alia  for facilitating
the financing of the public sector and supervising and controlling the financial system.  This is done in
part by using very stringent solvency and cashflow coefficients and requiring the deposit of reserves
with the INAF.  Banks are of course free to negoti ate interest rates and other terms with their clients.
4
Regarding fiscal policy5, because of Andorra's historical, social and political development, the
influence of the public sector is negligible.  The central fiscal system is therefore mainly based on
indirect taxation.  The local authorities also impose taxation consisting of direct duties and taxes.
                                                     
4 The Association of Andorran Banks (ABA) publishes data on interest rates.
5 Andorra would have been eligible for the single currency as in 1998 it met the Maastricht criteria
(inflation 1.62 per cent, indebtedness/GDP 11.10 per cent, budgetary deficit/GDP 0.7 per cent).WT/ACC/AND/3
Page 7
One future objective is to generalize indirect taxation and apply it to all production and
processing activities as well as services.
Andorra undertook a fiscal reform process in 1996 with the adoption of the General Fiscal
Law ( Llei de bases de l'ordenament tributari ).  This lays down the reference framework for fiscality
in Andorra, observing the constitutional principles of justice, legality, generality and equity in
apportioning the fiscal burden.  Two events made this Law necessary:  the EC-Andorra TradeAgreement, which entered into force on 1 July 1991, and the Constitution of the Principality of
Andorra approved on 14 March 1993.  The former made it necessary to apply fiscal customs
legislation that was in harmony with those of the European Union countries and the latter meant that
these bases had to be adapted to constitutional principles.  The law must also define the fiscal
competence of the local authorities in accordance with constitutional principles and the Basic Law
Delimiting Competence.
The General Fiscal Law lays down and defines the basic principles of Andorra's fiscal system,
to be used to underpin the development of a more modern fiscal regime that will allow the State to
meet the country's needs better and participate properly in the economic globalization process.
(c) Foreign exchange and payments system
In Andorra, the financial system enjoys total freedom with regard to the exchange regime.
The Association of Andorran Banks (ABA) fixes the legal exchange rate daily on the basis of
international currency markets.  There are no foreign exchange controls.  The payments systems are
the same as those used in Western European countries.
Since 1994, Andorra has had informal relations with the International Monetary Fund.  It
subsequently received three visits from IMF experts with a view to providing technical assistance.
The first in 1994 related to fiscal matters, the second in 1996 concerned an analysis of Andorra's
monetary system, and the most recent in 1998 focused on the establishment of a statistical service
comprising all macroeconomic data.  Andorra is fully eligible to join the IMF and membership of theFund is under consideration.
(d) Foreign and domestic investment policies
There are no restrictions on the entry of foreign capital except for the limit fixed by the
Regulations (with the status of law) on Business Firms, namely one third of the registered capital forforeign participation. This limit may be exceeded in the case of banking institutions and companies
deemed to be of public interest.
In the area of foreign investment, a policy to promote foreign investment in research, new
technologies and communications is being drafted.  Andorra has also embarked upon a gradual and
prudent opening up of its financial system.
A decree dated 8 July 1965 only allows foreign residents to own a single residential and /or
commercial property per person.
Regarding domestic investment, in 1996 a policy to facilitate home ownership was drawn up
and it grants lines of credit on terms that are more favourable than those on the market.  In view of thelevel of rates on the mortgage market, these aids are no longer considered priorities. In addition, the
future Land Use Planning Law (Llei d'Ordenació del Territori i Urbanisme), which is currently being
prepared, focuses on improving the interaction among the land, the population, activities, services and
the building and road infrastructure.
Investment in the communications infrastructure is deemed to be strategic because of
Andorra's mountainous relief and its considerable dependence on the outside.  The Envalira tunnelWT/ACC/AND/3
Page 8
currently being built will greatly improve communication with France.  Remodelling of the road
infrastructure will prevent congestion in the most densely populated urban centres and facilitate travelthroughout the country.
(e) Competition policies
As Andorra has a very open but small-scale economy, it does not yet have a competition
policy, although some institutions or associations  (consumers' association, employers' association,
Chamber of Commerce) try to prevent abuse or ensure that it is punished by the competent courts.
3. Foreign trade in goods and services
The economy of the Principality of Andorra has always been based on trade with
neighbouring countries, consequently any assessment of its economic activity necessarily requires an
analysis of trade flows.
The trend in imports is closely linked to th at in tourism, the main driving force of its
economy.  Fluctuations in domestic consumption by residents also affect the level of imports.
Chart 2:  Import Trend 1976-98
 050 000100 000150 000200 000
1976 1979 1982 1985 1988 1991 1994 1997
Ptas million, 1985
constant prices
Ptas million, current prices
(a) Volume and value of trade
Foreign trade trends shadow those in neighbouring countries.
Over the past 20 years, imports in value (current prices) have experienced an upward trend.Following a continued and sustained rise between 1988 and 1990, imports into the
Principality of Andorra fell from 1990 to 1992.  There was a slight recovery between 1992 and 1994and this was confirmed in 1995 and 1996.  In 1997, there was strong growth due in a large measure to
the demand by visitors for consumer goods.  In 1998, the growth in imports continued and reached a
level of Ptas 161,087 million (C
968.15 million).
The volume of exports is negligible.  In 1997, the value of all exports of goods taken together
was Ptas 7,041 million (C 42.31 million).  In 1998, exports amounted to Ptas 8,450 million
(C50,78 million).WT/ACC/AND/3
Page 9
An analysis of imports by tariff chapter shows that growth focuses on a limited number of
products, the majority of which are related to the tourist trade.
In 1997 there was strong growth in imports, especially products of the food industry,
beverages and tobacco.  For example, Chapter 24 pr oducts increased the most with growth of 14 per
cent.  For the other products, there was an increase  in imports under the headings footwear, umbrellas,
which rose by 11.4 per cent, fuels (9.0 per cent increase) and optical and photographic articles, clocksand watches (7.5 per cent increase).  Two important headings occupied a large place in foreign trade,
chemical and pharmaceutical products (including perfumery and cosmetic preparations), which rose
by 4.7 per cent, and textile and made-up products, a 5.4 per cent increase.  Imports in the paper,
graphic arts and publishing sector also rose at a rate above average due to domestic consumption and
production.  One chapter that had traditionally been an important component of tourism-related trade,
namely electrical, and sound and visual recording and reproduction equipment, fell by 1.2 per cent,
the same situation prevailed in the jewellery sector but was even more accentuated with a reduction of7 per cent.  There was slight growth in imports of products such as food products of first-stage
processing, building materials, glassware and ceramics, electronic equipment and transport
equipment.
Certain facts concerning 1998 should be noted.  There was a sharp drop in imports of tobacco,
which only reached just over one third of the figures for 1997.  There was also a gradual reduction in
imports of by-products of the dairy industry, mainly due to the loss of comp etitiveness following the
elimination of certain export refunds in the EU, and in imports of vegetable oils.  Imports of
beverages continued to increase regularly.
Imports of products directly related to tourism such as perfumery products, articles of leather,
clothing, jewellery and electronic goods increased in 1998.
Imports of paper and paperboard and products of the graphic industry fell in 1998,
underlining the relative loss of importance of this sector.
Sectors clearly directed at meeting domestic demand such as motor vehicles and furniture, as
well as products for the building industry, experienced considerable growth.
(b) Trade by geographic areas and dynamics of trade
The largest volume of imports comes from Europe and accounts for around 88 per cent of the
total, with the major part coming from the two neighbouring countries, France and Spain.  Their
relative share rose from 61.1 per cent in 1988 to 73.1 per cent in 1998.
Spain had traditionally occupied second place for imports, but in 1992 it became Andorra's
principal supplier.  The relative positions of France and Spain have therefore been reversed (see
Chart 3).WT/ACC/AND/3
Page 10
Chart 3: Trend in imports from France and Spain (1988-1999)
The reason for this reversal is not solely the successive devaluations of the Peseta, which have
made Spanish exports more competitive.  Although this remains an important factor, the Spanish
economy has also become more competitive as a resu lt of the impetus provided by Spain's entry into
the EC, which incited Spanish enterprises to make more determined efforts to export.  Two other
factors also played a role.  The greater ease of communications due to the infrastructure on the
Spanish side, which is a structural factor, and the composition of Andorra's population, with a Spanishmajority that shows a marked preference for Spanish products, which is a sociological factor.
Andorra imports electrical equipment, motor ve hicles, beverages, furniture, meat, etc. from
Spain.  From France it buys perfumery products, fuel s, electrical equipment, dairy products, motor
vehicles, clothing, etc.
Imports from both France and Spain are highly diversified.  The chemical and pharmaceutical
products, fuels, textile products, clothing and footwear, optical and photographic equipment and
clocks and watches imported from France are of better quality than those from Spain.  The reverse
applies to paper, graphic arts and publishing.
For Andorra's other suppliers (see Chart 4), in 1998 there was a reduction in imports from the
United States and the United Kingdom, the major suppliers of tobacco and beverages, with a
significant drop in mid-1997.
Chart 4:  Import Trend by country (1988-1998)
0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%10.0%
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998Germany
United States
United Kingdom
Italy
Japan
Switzerland
China
Other
Sales by major suppliers in Andorra focus on a limited number of articles.  For example, the
majority of imports from Germany are foodstuffs, beverages, tobacco and transport equipment,whereas from Italy they are textiles, clothing and footwear.  Imports from the United Kingdom and0.0%20.0%40.0%60.0%
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998Spain
FranceWT/ACC/AND/3
Page 11
the United States of America are mainly food products, beverages and tobacco and transport
equipment.  Most of the imports from Japan are electrical goods.
(c) Accompanying statistical data and information on publications (Annex 1 refers)
4. Domestic trade in services, including value and composition of foreign direct investment
Andorra's economy is clearly tourism-oriented so the development of activities related to the
flow of visitors, the hotel industry, food and beverage services, sports and recreational services, aswell as tourism-oriented trade, is decisive.
The diversity of branches in this sector makes it necessary to provide a more detailed analysis
of the main branches.  Services in Andorra are in the commercial sector, tourism and the financial
system.
Trade
During the 1990s, the relative prices of Andorran products in comparison with those in
neighbouring countries disadvantaged Andorra.  Trade has nevertheless adapted to this new situation
and seeks to provide incentives other than price.
The trade sector has also adapted by gradually consolidating.  In 1997, for example, the
number of retail shops declined by 85, while the number or people employed increased significantly,
one reason being the growing need to be competitive.
Tourism
In 1997, ten million people visited Andorra.  Skiing, shopping and enjoying the beautiful
landscape are some of the main activities that attract tourists.  Andorra has a wide range of
high-quality services, more than 220 hotels, 233 km. of ski trails, a wide variety of gastronomic
attractions, shops, shows and museums inter alia .  There has also been an improvement in the tourism
infrastructure.  In 1997 and 1998, a large amount of money was invested in ski trails.  In 1997, over
2 million daily ski passes were sold and in 1998 this reached the record figure of 2.2 million, morethan all the other ski resorts in the Pyrenees put together.
The financial system
The financial system is one of the most vigorous sectors of the Andorran economy.  In 1997,
it employed 1,276 people, or 4.39 per cent of the total working population.  This sector hasexperienced relatively stable and sustained growth.
5. Information on financial movements related to nationals working abroad, remittances,
etc.
There is no control on financial movements related to nationals working abroad.
6. Information on growth in trade in goods and services over recent years and forecasts for
years to come
The ratio of imports to the GDP is very high in Andorra.  This can be explained by the minor
role played by local production in overall supply.  This is why analysing imports provides valuable
information on the performance of the tourism sector and on domestic demand.
If the current expansionist phase of the economic cycle continues and if the expected growth
in the European economy occurs, we can anticipate an increase in Andorra's imports in future years.WT/ACC/AND/3
Page 12
Chart 5:  Trend in Andorra's imports compared with growth in GDP in France and Spain (in
real terms)
As Chart 5 shows, in 1987, the increase in Ando rra's imports in real terms exceeded 10 per
cent, but was negative between 1991 and 1994.  There was a degree of stability in the years 1995 to
1996, but in 1997 there was exceptional growth of 14 per cent (eight per cent if tobacco imports are
excluded).  In 1998, there was no large increase in tobacco imports and growth in total imports in real
terms was 1.5 per cent (2.9 per cent in nominal terms).
As can be seen in Chart 5, Andorra's imports reflect to a greater degree the cycle in European
countries, particularly France and Spain.  This is because one major component of demand is invisible
exports, especially tourism which is highly dependent on the economic situation in the countries of
origin of the tourists.
Chart 6 shows that the increase in the number of wage-earners in Andorra closely follows
trends in the French and Spanish economies.  In 1993, for example, there was a sharp drop in job
creation in Andorra at a time when all European countries were registering negative growth rates.
Over the past five years, however, Andorra has had a positive rate of job creation of about 2.5 per
cent, higher than the figures in the majority of European countries.-0.1-0.0500.050.10.150.2
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997GDP France
GDP Spain
Andorra's importsWT/ACC/AND/3
Page 13
Chart 6: Increase in the number of wage earn ers employed in Andorra and growth in GDP in
real terms in France and Spain
This shows that the Andorran economy is clos ely linked to the European and international
economic situation, and is affected by the amplified repercussions of crises and expansionist phases.
There was a record rate of job creation (5.8 per cent) in 1998, due mainly to the building,
trade, services and hotel sectors.
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
1. Powers of executive, legislative and judicial branches of government
The Constitution approved on 14 March 1993 proclaims the separation of the executive,
legislative and judicial branches of government.
Executive branch
The Constitution of the Principality of Andorra states that the Head of State shall be the
Co-Princes jointly and indivisibly.  They are the highest representatives of the State.  The Co-Princes
are, in their personal capacity and exclusively, the Bishop of Urgell and the President of the French
Republic.  They are the symbols and guarantors of the continuity of Andorra and of its independence.
They are responsible for assuming Andorra's international commitments.  They are the arbiters and
the moderators of the functioning of the public authorities and institutions and are kept regularlyinformed of affairs of State.  After legislation has been adopted by the Parliament, the Síndic General
(the President of Parliament) transmits them to the Co-Princes for their endorsement and enactment
and orders their publication in the BOPA (Official Journal of the Principality of Andorra).
The Govern  (Government) is composed of the Cap de Govern  (Prime Minister) and ministers.
It oversees Andorra's national and international policy.  It is also responsible for the administration of
the State and has regulatory powers.-0.04-0.03-0.02-0.0100.010.020.030.04
1992 1993 1994 1995 1996 1997GDP France
GDP Spain
Wage-earners in AndorraWT/ACC/AND/3
Page 14
Legislative branch
The Consell General  (Parliament) jointly and collectively represents the Andorran people and
the seven Parròquies  (Andorra's traditional territorial entity ).  It represents the Andorran people,
exercises legislative power, adopts the State budget, catalyses and controls the Government's political
action.
Judicial branch
Judgements are pronounced on behalf of the Andorran people exclusively by independent and
irremovable judges, who in exercising their jurisdictional functions are only subject to the
Constitution and the law.
2. Government entities responsible for making and implementing policies affecting foreign
trade
The Constitution states that "the State may intervene in the organization of economic,
commercial, and financial life and of labour in order to ensure balanced development of society and
general well-being within the framework of a market economy.
In addition, Article 4 of the Basic Law regulating the State's activity relating to Treaties, dated
19 December 1996, provides that the negotiation of treaties is the responsibility of the Ministry ofForeign Affairs, in cooperation with other ministries concerned.
The Ministry of Foreign Affairs is responsible for all aspects of Andorra's foreign policy.In practice, when making and implementing fo reign trade-related policies, the responsibility
for initiating the policies belongs to either the Ministry of Foreign Affairs or the Ministry of Finance
and the Economy, although the Ministry of Foreign Affairs is given competence for negotiation if the
adoption and elaboration of a foreign trade policy requires the signature of a treaty or accession to an
international organization.
The Ministry of Finance, through the Customs Di rectorate, plays an important role in carrying
out policies, for example, in applying the provisions of the EC-Andorra Agreement.   It plays the
major role in carrying out foreign trade policies.
The Directorate of Customs also has responsibilities for monitoring foreign trade (see
Article 1 paragraph (e) of the internal regulations of the Customs Directorate, published in the BOPA
(Official Journal of the Principality of Andorra), wh ich states that "(e) In the economic context, the
customs shall ensure that the rules on foreign trade are applied and that all relevant statistical
information is provided; (f) In the context of the customs union with the European Community, the
customs shall be responsible for applying the regulations under this customs union".
Article 59 makes the customs responsible for monitoring all customs operations relating to the
preferential regimes established by the European Community under the common agricultural or other
similar policies.
The judicial authorities only intervene if there are administrative or criminal contentious
proceedings in order to prosecute and punish violations or offences against the legislation in force.
3. Division of authority between the centr al government and local authorities ( Communes )
Andorra is administratively divided into seven parishes, Canillo, Encamp, Ordino, La
Massana, Andorra la Vella, Sant Julià de Lòria and Escaldes-Engordany, whose surface area and
population vary.  The capital is Andorra la Vella, which also has the highest population density,WT/ACC/AND/3
Page 15
followed by Escaldes-Engordany.  The Communes  (local authorities) are the entities which represent
and administer the parishes.  They are local government authorities with their own legal status and thepower to issue local regulations, subject to the law, in the form of orders, regulations and decrees.
The Communes represent, govern and administer the interests of the parishes.  They adopt and
utilize their own budgets.  Within their area, they define and implement the public policies within
their competence and manage and administer all the Commune's  assets, both public and private.
The 1993 Basic Law delimiting the competence of the parishes defines the respective
competence of the central and local authorities.  The Law respects the State's prerogatives and defines
the powers given to the Communes  so that they can exercise their competence for economic and fiscal
matters.  The fiscal competence of the local authorit ies is determined by their capacity to raise the
taxes and duties specified in the Basic Law Delimiting Competence, within the overall framework.
Local authorities may impose and administer the following taxes and charges:  traditional taxes, feesfor services by the Commune , taxes and duties for carrying out administrative acts, the tax on setting
up or exercising commercial, industrial or non-co mmercial professional activities, property tax on
buildings or on land, and on the profits and sale of such properties.
Some areas within the State's competence may be transferred by law to the parishes.
4. Any legislative programmes or plans to change the regulatory regime
(a) Regime applicable to import and export transactions
The regime applied in the Principality of Andorra is based on the Community's customs
regulations.  The EC-Andorra Agreement on customs union defines the regime applicable to goodscovered by the customs union (industrial products, Chapters 25-97 of the Harmonized Commodity
Description and Coding System).
Article 7 of the EC-Andorra Agreement states the following:
"1. For products covered by the customs union, the Principality of Andorra shall adopt,
with effect from 1 January 1991:
- The provisions on import formalities applied by the Community to third
countries;
- the laws, regulations and administrative provisions applicable to customs
matters in the Community and necessary for the proper functioning of the
customs union.
The provisions referred to in the first and second indents shall be those currently applicable in
the Community."
Since 1 July 1996, goods imported into the Principality of Andorra from third countries may
enjoy entry into free circulation at Andorran customs offices, which apply the same common external
tariff as the Community customs offices.  The pr ovisions of the Agreement are implemented through
decisions by the EC-Andorra Joint Committee.  The pr ovisions on trade policies in Annex II to the
Agreement state the following:  "As regards the prov isions of trade policy adopted by the Principality
of Andorra under the Agreement, and in order th at imports of the products consumed in Andorra
should not be affected by these provisions, derogations may be decided by the Joint Committee at the
request of the Principality of Andorra; these derogations may include aspects of common commercial
policy which do not apply to all the member St ates of the Community.  The Commission shall
communicate to the Andorran authorities any relevant information concerning the arrangements
applicable to the Community's external trade."WT/ACC/AND/3
Page 16
(b) Export promotion measures
With a view to developing new export opportunities for industrial products within the
framework of the EC-Andorra Agreement, on 21 April 1993, the Andorran Government adopted
regulations on commercial import/export transactions with refund of duties.  See page 25, point 2
(Export Regulation, point (h), import duty drawback schemes).  Initially, these provisions applied to
goods covered by the customs union, but on 15 November 1995 they were extended to cover goodsoutside the customs union.
(c) Foreign trade controls
At the international level, the Joint Committ ee set up under the Agreement controls foreign
trade in goods between Andorra and the European Community.  At the purely domestic level, the
current practice is that the Ministry of Finance is responsible for controlling foreign trade through the
Customs Directorate.
In practice, the only control measures applied in Andorra are quotas, import monitoring, the
textile products regime, applied by the EC to imports from third countries of products under
Chapters 25-97 of the HS
6, and these measures may be the subject of arrangements specific to
Andorra established by the EC-Andorra Joint Committee.
(d) Domestic trade controls
The Trade Department of the Ministry of the Economy controls domestic trade.
5. Laws and legal acts (Annex 2 refers)
6. Description of tribunals
According to the law, jurisdiction is exercised by the Batlles  (Judges), the Tribunal de Batlles
(Court of Judges), the Tribunal de Corts  (Criminal Court), and the Tribunal Superior de Justicia
(Court of Appeal/Council of State).  Once a final ruling has been given, it can only be modified or
annulled as a result of individual appeal proceedings ( recours d'empara ), if the Constitutional Court,
which is the supreme interpreter of the Constitution, considers that it has infringed a fundamental
right.
Court of First Instance, Judges and the Court of Judges7
Judges ( Batlles ) are competent to hear all contentious cases in the first instance, with the
exception of major criminal offences.  The judges individually carry out the preliminary investigation
into criminal cases.  Judges and courts are also responsible for overseeing the civil register.
The Court of Judges has three sections, namely, the civil, criminal, and administrative
sections.  There are three judges in each section to hear cases.  The Court's deliberations are secret and
decisions are adopted by a majority.
                                                     
6 Harmonized system.
7 Batlles i Tribunal  de Batlles .WT/ACC/AND/3
Page 17
Tribunal de Corts  (court that only hears criminal cases)
The Tribunal de Corts  is competent to try major offences in the first instance and to carry out
sentences and other decisions.  Through its President, it controls prisons and sentencing.  It hears
appeals against decisions by judges that affect the liberty of persons under investigation or takes
preventive measures during the preliminary investigation.
The Supreme Court of A ndorra (Court of Appeal)
The Supreme Court of Andorra comprises a Pres ident and eight magistrates appointed by the
Supreme Council of Justice.  It is the Principality's  highest judicial authority.  It hears all appeals
against judicial rulings given by judges in the first instance in civil and administrative cases, within
the limits set by the law, and decisions by the Tribunal de Corts  in criminal cases.
The Supreme Court has three chambers, one dealing with civil cases, another with criminal
cases, and a third with administrative and social security contentious proceedings.
For civil and administrative cases, the Andorran justice system has two instances, the first
instance, with a single judge or court of judges ac cording to the seriousness of the case, and in the
second instance, the higher court, either the civil or the administrative chambers.
There are three instances for criminal cases.  In the first instance, minor criminal offences are
dealt with by a single judge.  Serious offences are tried by the Court of Judges and the most serious
offences go directly to the Tribunal de Courts .  The latter has competence in the second instance and
final appeals may be made to the criminal chamber of the Supreme Court of Justice.
Supreme Council of Justice
The Supreme Council of Justice represents, supervises and administers the judicial system
and ensures its independence and proper functioning.  It comprises five members, who are Andorran
nationals over 25 years of age with experience of administering justice.  One member is appointed by
the President of Parliament, one by each Co-Prince, another by the head of the Government (PrimeMinister) and one by the magistrates and judges.  Their term of office is six years and they may not be
appointed for more than two consecutive terms.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import regulation
(a) Registration requirements for engaging in importing
Only natural or legal persons previously registered in the commercial register of the
Principality of Andorra are entitled to engage in the importation of goods on a commercial basis.
This requirement is contained in the Decree on the control of commercial imports, approved
on 15 October 1981 by Parliament (prior authorization for trading activity).  It is also set out in
Article 3 of the parliamentary Decree of 10 Octo ber 1981 regulating commercial and industrial
activities.
The Decree stipulates that the Government should examine the mutual compatibility of each
of the commercial activities requested under the same authorization, on the one hand, and the actual
activities carried out, on the other.  Customs procedures on entry may consequently also be directedtowards enforcement of this obligation.  The nature of the goods imported by a natural or legal person
must therefore correspond to the activities authoriz ed with reference to the commercial register.WT/ACC/AND/3
Page 18
(b) Characteristics of national tariff
The composition of the national customs tariff is based in part on the regulations and
undertakings arising from the Agreement between the European Community and Andorra, signed on
28 June 1990.  The nomenclature comprises some 10,600 eight-digit codes covering the HS
headings 1 to 97.
The customs union for the trade in and movement of industrial products makes it obligatory:- To eliminate customs duties and charges having equivalent effect, as well as
quantitative restrictions on trade between th e two signatory parties (Articles 6 and 9
of the specific provisions on the EC-Andorra customs union);
- for the Principality of Andorra to adopt the Community provisions on imports
applicable to third countries outside the customs union, and the measures required bythe trade policy applied by the EC in respect of such third countries (Article 7 of the
Agreement).
Consequently, the national customs tariff takes the above-mentioned provisions into account,
and makes a distinction between agricultural products under Chapters 1-24 of the HS and industrialproducts under Chapters 25-97 of the HS.
(i) Agricultural products
With regard to the products covered by Chapters 1-24 of the HS, the national customs tariff
uses the combined Community nomenclature for the description and codification of goods.  Theeight-digit nomenclature may in some cases be accompanied by a ninth digit to cover national
regulatory requirements.
Customs duties are of two kinds:
• Principally, ad valorem  duties with the following rates:
- 1 and 2 per cent in respect of most products;
- 3, 5, 15 or 19 per cent for beverages under Chapter 22, and 3 and 5 per cent
for "homogenized" or "reconstituted" tobacco under heading 24.03.91;
- 18 and 30 per cent for cigars and cigarillos under 24.02.10, and 36 and 60 per
cent for smoking tobacco under 24.03.10 (charges subject to a minimum
specific levy for these products);
• subsidiarily, "specific" duties on certain products such as the following:
- live animals under HS Chapter 01, with rates expressed in fixed peseta
amounts per "animal unit" (equine and bovine animals, pigs, sheep and goats)
and in terms of volume ("litre unit") in respect of ethyl alcohol;
- tobacco and tobacco products, other than those listed above, with rates
expressed in fixed peseta amounts by unit of quantity ("weight unit" and"package unit").WT/ACC/AND/3
Page 19
By way of illustration, the value of imports of products under HS Chapters 1-24 for the period
1 July 1998 to 31 December 1998 amounted to Ptas 19,047,526.321.  Customs duties collected inrespect of the products concerned amounted to r oughly Ptas 2,325,793.945, giving an average rate of
duty of over 12 per cent ( Taxa sobre el Consum ).
Within the framework of Title II of the EC-Andorra Agreement, and Article 12.2 in
particular, the Principality of Andorra grants a preferential rate corresponding to 60 per cent of thenormal rate of customs duty applicable to tobacco products under headings 24.02 and 24.03 of the HS.
This preferential rate is granted for the products concerned on two conditions:
- That they are manufactured in the EC;  and- that the raw tobacco used meets the requirements of Article 3.1 of the Agreement, i.e.
that it is produced in the EC or the Principality of Andorra within the meaning ofArticle 3.1(a) or that it is released into free circulation when coming from third
countries as provided in Article 3.1(b).
(ii) Industrial products
Pursuant to the EC-Andorra Agreement, the import duties provided for in the Common
Customs Tariff (CCT) of the European Communities are the only customs duties applied in the
customs union, consequently:
- The applicable tariff nomenclature is the one established by the Common External
Tariff of the Community.  The Principality of Andorra has adopted the IntegratedTariff of the European Communities in order to be able to exercise the right of entry
into free circulation for its goods, as from July 1996, in accordance with
Article 8.1(b) of the EC-Andorra Agreem ent (ten-digit nomenclature, TARIC);
- import duties are those provided by the CCT.  The Principality of Andorra has also
adopted (or is in the process of adopting for certain regimes) the laws, regulations and
administrative provisions applicable to customs matters in the Community and
necessary for the proper functioning of the Agreement (in accordance with
Article 7.1, second indent, thereof).
The Customs Code Law, approved by Parliament on 20 June 1996, codifies Andorran
customs legislation in respect of all HS products, with due regard for the obligations arising from the
Agreement and on the basis of Council Regulation (EEC) No. 2913/92 of 12 October 1992,
establishing the Community Customs Code.
- The preferential tariffs applied by the Principality of Andorra are based on the
relevant Community provisions, whether in respect of autonomous (GSP) orconventional preferences (ACP Agreement, Overseas Countries and Territories, EEA,
EFTA, European Agreements, Euro-Mediterranean Agreements, etc.).
(c) Tariff quotas, tariff exemptions
(i) Tariff quotas
No system of tariff quotas has been established on the initiative of the Principality of
Andorra.WT/ACC/AND/3
Page 20
(ii) Tariff exemptions
A number of tariff exemptions are provided for in the CCT.  They are applied upon entry into
free circulation of the goods concerned.
Exemptions from customs duty are also granted, particularly to travellers.  They are based
mainly on the provisions contained in paragraphs 1 and 3 of Article 13 of the EC-Andorra Agreement,
(the derogation is also contained in Article 6.3(d)).  Other exemptions relating to certain persons oroperations are based on the national legislation on the consumption tax ( Taxa sobre el Consum ),
which is shortly to be brought into line with existing Community provisions on the subject
(particularly those relating to diplomatic and consular exemptions, small non-commercial shipments,
personal goods and private transactions, privileged destinations).
(d) Other duties and charges, specifying any charges for services rendered
There are no duties and charges other than those previously mentioned.  There are no fees for
services rendered by the administration in c onnection with import or export operations.
Import charges may be summarized as follows (see also point (k) below):
(i) Agricultural products under HS Chapters 1-24
Customs duties take the form of a charge based on the national consumption tax law,
approved by Parliament on 30 December 1985.  Prior to the EC-Andorra Agreement, this tax was the
only customs charge collected on goods imported into the customs territory of the Principality of
Andorra.
Following the entry into force of the EC-Ando rra Agreement in July 1991, collection of the
consumption tax was discontinued in respect of imports of products covered by the customs union
(decision contained in exemption provisions, " in fine ", of the Law on the indirect taxation of goods
(IMI) of 26 June 1991).
The consumption tax is thus currently applied exclusively to imported products covered by
Chapters 1-24 of the HS.  It is given the title " dret duaner " (customs duty) in the national tariff and is
applied on the conditions specified in Part IV.1(a), (b) and (c) above.
(ii) Industrial products under HS Chapters 25-97
Since the entry into force of the EC-Andorra Ag reement, the only import duties applicable in
the Principality of Andorra, in accordance with the provisions of the customs union, are those
provided for in the Common Customs Tariff of the European Communities.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
A number of prohibitions or other restrictions for reasons of health, safety, public order or
public morality are applied in respect of certain products or operations of a general or specific nature.They can be divided into purely national provisions and provisions under the EC-Andorra Agreement.
(i) National provisions
At the national level, import restrictions take the form of prohibitions on certain products such
as narcotic substances (total ban under criminal law).WT/ACC/AND/3
Page 21
Other provisions
• Administrative authorizations are required for the import of certain goods, mainly on
grounds of public health, public order, public safety or protection of health(pharmaceutical products, health regulations, weapons and explosive substances,
etc.).  Other requirements may relate to the enforcement of administrative regulations,
as in the case of tobacco under Chapter 24.01 of the HS.
• A ban on the import of "demountable tower cranes" that have been in service more
than three years from the date of their manufacture, pursuant to the safety regulationson demountable tower cranes ( Règlament de Seguritat en Grues Torres
Desmuntables ), approved by Parliament on 21 March 1980.  The Decree signed by
the President of the Parliament on 11 June 1980 makes importation conditional on
compulsory presentation of the manufacturer's certificate (essential characteristics,serial number, date of manufacture).
• Prior authorization is required from the services of the Ministry of Industry for the
temporary import of special vehicles, in accordance with the parliamentary Decree of29 July 1981 (vehicles to be used for earthworks, among others).  The granting of
authorization depends on the situation of the "stock" of vehicles of the same type in
the Principality of Andorra.
• Ban on the import and registration in the Vehicle Register of all motor vehicles
manufactured more than three years prior to the date of their import into thePrincipality of Andorra (Article 141 of the Traffic Code as amended by the Law
adopted by Parliament on 4 December 1991).  This prohibition also extends to trailers
and semi-trailers and concerns all motor vehicles, whether intended for passenger
transport or to carry other types of load (possible exemptions under certain conditionsfor vintage or museum vehicles on the one hand, and certain agricultural vehicles
purchased by farmers for farm work, on the other).
• There are no import restrictions in the form of quotas or licensing systems.
(ii) Provisions under the EC-Andorra Agreement
The Principality of Andorra is bound to apply EC trade policy regulations to the import of
industrial products.  However, as far as import restrictions are concerned, some exemptions have been
decided by the EC-Andorra Joint Committee, in accordance with Annex II to the Agreement.
One example is Decision 2/96 of the EC-Andorra Joint Committee, dated 1 July 1996
(Official Journal (BOPA) of 18 September 1996, No. 65, year 8), which establishes a surveillance
procedure with a framework allowing for re-export to the EC of:
- Certain textile products originating in third countries, released for free circulation in
the Principality of Andorra and covered by HS Chapters 50-63;
- certain products originating in the People's Republic of China, also released for free
circulation in the Principality of Andorra.
Decision 2/96, applicable for a period of two years from 1 July 1996, was extended by
Decision 1/98 of the EC-Andorra Joint Committee, dated 20 October 1998 (98/652/EC).WT/ACC/AND/3
Page 22
(f) Import licensing procedures
Apart from the provisions referred to in paragraph (e) above, no other import licensing
procedures or similar administrative formalities are applied as possible prerequisites for importation
into Andorran customs territory.
(g) Other border measures, e.g. any other schemes that have border effects similar to those of the
measures listed under (e) above
No other border measures are applied to imports, apart from those actually necessary for the
implementation of some of the regulations referred to in point (e) above.  This is the case for quality
controls for certain products, for example, sanitary, veterinary or phytosanitary inspections and
authorizations (Regulation on compulsory customs formalities for animals and agricultural products,
approved by the Government on 12 July 1991).
(h) Customs valuation
In accordance with Article 7.1, second indent, of the EC-Andorra Agreement, and the relevant
annex, the customs provisions to be adopted by the Principality of Andorra with respect to customs
valuation of industrial goods are required to conform to the provisions contained in
Council Regulation (EEC) No. 1224/80 of 28 May 1980.  That Regulation was subsequently
integrated into the Community Customs Code, particularly Articles 28-36 supplemented by theprovisions of Articles 141-181 bis of Commission Regulation (EEC) No. 2454/93 of 2 July 1993.
These provisions take into account the principles defined in the Agreement on
Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (WTO Customs
Valuation Agreement).
Consequently, the customs valuation provisions in the WTO Agreement have been adhered to
in the elaboration of Articles 26-34 of the national Customs Code Law adopted by the Parliament of
Andorra on 20 June 1996.
The above-mentioned WTO rules on customs valuation are applied in practice for the
collection of customs charges on all HS products.
The Principality of Andorra has requested authorization from the European Commission, in
the interests of uniformity, simplification and coherence, to expand the customs provisions under theEC-Andorra Agreement to cover all HS Chapters 1-97, with due regard for the relevant legal texts and
international commitments, and with emphasis on the two points referred to above.
8
These changes will be introduced across the board and put into practical effect shortly.  (See
Annex 4:  Information on implementation and administration of the Customs Valuation Agreement.)
(i) Other customs formalities
No formality other than those described above is prescribed in the import regulations.
(j) Preshipment inspection
The Principality of Andorra has no preshipment inspection procedure.
                                                     
8 The Commission departments have authorized certa in specific characteristics peculiar to Andorra to
be maintained in the regulations applicable to certain goods, insofar as these are not at variance with theprovisions of the Agreement (communication 01189 – XXI/A/3/LG D(98)r-0120, of 5 February 1998).WT/ACC/AND/3
Page 23
(k) Application of internal taxes on imports
With regard to internal taxes on imports, assessed and collected in addition to customs duties,
the Principality of Andorra collects the indirect tax on goods (IMI) under a law approved by
Parliament at its Special Session on 26 June 1991.
The law in question introduced an indirect tax defined in Article 1 as a tax on the production,
preparation and importation into the territory of the Principality of Andorra of all movable tangibleproperty.  Gradual implementation of this law began in July 1991.
The tax comprises:Ad valorem  rates for the most part (rate of 0 per cent for books and other reading materials
under HS heading 49.01, gold powder under 71.08.11.00 of the Combined Nomenclature
(CN), invalid carriages under 87.13 and parts thereof under tariff heading 87.14.20.00 – ratesof 1 per cent for agricultural products and 4 per cent and 7 per cent for industrial products,
with some products taxed at 12 per cent);
In addition, "specific" rates expressed as a fixed peseta amount per litre unit, in respect of
mineral oils.
The Principality plans eventually to apply a ll the provisions contained in the IMI Law, in
order to establish identical tax rates, within the meaning of that Law, for imported goods and
like products produced or prepared on the national territory (harmonization with regard
inter alia  to the provisions of Article 5 on the EC-Andorra customs union and Article 14
dealing with general provisions under the Agreement).
(l) Rules of origin
Rules of origin are set out in the provisions of the Customs Code Law, specifically in
Articles 21-24 with regard to "non-preferential" or igin and Article 25 with regard to "preferential"
origin.
9
Article 21 defines the rules relating to goods considered to have been obtained in their
entirety (extracted and harvested products, animals born and reared, etc.).
Article 22 specifies the rules of origin under Community law to be observed with regard to
goods produced in two or more countries (concepts of substantial processing or working –
economically justified – carried out in an enterprise equipped for that purpose – culminating in the
manufacture of a new product or representing an important stage in the manufacturing process).
Article 23 constitutes a "protection clause" in case of justified presumption of fraud.
Article 24 defines the principle of supporting documents providing evidence of origin.
Article 25 specifies the rules of preferential origin derived from the application of the
provisions of Article 18 of the Law on the Code, points (e) and (f) – (preferential tariff measures
contained in the agreements concluded by the Principality of Andorra and tariff measures appliedunilaterally in favour of countries, groups of countries or territories).
It should be noted:
                                                     
9 The definitions of the origin of goods correspond in all respects to those contained in Articles 23-27
of the Community Customs Code.WT/ACC/AND/3
Page 24
- That implementing regulations for the provisions of the Customs Code were
elaborated and approved by the Andorran Government on 5 February 1997(implementing regulations, part 2), on the basis of the corresponding provisions for
implementation of the Community Customs Code (Articles 35-52 and 54).  These
provisions concern the processing of industrial products under Chapters 25-97 of the
HS;
- that there are no preferential tariffs for imports of agricultural products (apart from
those provided for in Article 12.2 of the EC-Andorra Agreement).
(m) Anti-dumping regime
Within the framework of its customs union wi th the EC, the Principality of Andorra is
required to adopt the Community provisions on imports vis-à-vis  third countries, as well as the trade
policy measures applied by the EC to third countries (Article 7 of the Agreement and Article 77 of thenational Law on the Customs Code).  However, this obligation applies exclusively to industrial
products covered by Chapters 25-97 of the HS.
The anti-dumping rules applied by the Principality of Andorra are therefore based on the
provisions adopted by the Community institutions on the basis of Article 113 of the Treaty of Rome,and in accordance with the current provisions of Regulation (EC) No. 384/96 of the Council of the
European Union, of 22 December 1995 (anti-dumping rules applied in connection with the release for
free circulation of industrial products), where such provisions are prescribed.
(n) Countervailing duty regime
As in the case of anti-dumping rules, the Principality of Andorra is required to take into
account the trade protection instruments adopted by the EC pursuant to the Community's "anti-
subsidy" regulation (application of a possible EC countervailing duty, at the time of release for free
circulation, under Council Regulation No. 2026/97 of 6 October 1997).
(o) Safeguard regime
In this connection and with regard to industrial products, Article 10 of the EC-Andorra
Agreement provides for the possibility of safeguard clauses in the application of trade policy
provisions vis-à-vis  third countries, where deflections of trade occur or economic difficulties arise on
the territory of one of the contracting parties.
10
2. Export Regulation
(a) Registration requirements for engaging in exporting
Only natural or legal persons previously registered in the commercial register of the
Principality of Andorra are entitled to engage in  the exportation of goods.  (See Article 3 of the
Parliamentary Decree of 10 October 1981 establishing requirements for the exercise of commercial
and industrial activities.)
                                                     
10 Such measures must, however, be notified to the EC-Andorra Joint Committee.WT/ACC/AND/3
Page 25
(b) Customs tariff nomenclature, types of duties, duty rates, weighted averages of rates
The nomenclature referred to in point 1(b) serves to identify all goods declared for customs
purposes, and hence to determine their categories within the meaning of the designations contained in
the customs tariff, in respect of both imports and exports.
No customs duty or tax having equivalent effect is applied by the Principality of Andorra on
exported products.
(c) Quantitative export restrictions, including prohibitions, quotas and licensing systems
There are no quantitative restrictions on goods exported from the Principality of Andorra,
apart from certain requirements of general interest or requirements arising from the provisions of the
EC-Andorra Agreement.
(i) National provisions
Export of works of art or archaeological items is subject to "prior authorization" under the
terms of a Government regulation of 20 April 1988, which governs the implementation of Order No.1,
Appendix 1, of 4 June 1987 on export of works of art.  The prior authorization required for export
must be requested from the Ministry of Culture (Articles 3 and 4 of the Regulation).
When animals and agricultural products leaving the territory are clearing customs a sanitary
or veterinary certificate and a certificate of provenance or origin countersigned by the authorized
services of the Ministry of Agriculture must be presented (Regulation on compulsory customs
formalities for animals and agricultural products, of 12 July 1991).
(ii) Provisions adopted pursuant to the EC-Andorra Agreement
These complement the exemption provisions under Decision 2/96 of the EC-Andorra Joint
Committee (extended by Decision 1/98), which were referred to in point 1(e)(ii) above.
Re-export to the EC of the following products is therefore subject to surveillance and control:
- Textile products covered by Chapters 50-63 of the HS, originating in third countries
and released for free circulation in the Principality of Andorra.  National provisions
have been adopted to regulate these requirements and thereby to prevent deflections
of trade harmful to the proper implementation of these provisions (Decree on exportsof textile products of 8 April 1992 and implementing regulations of 11 June 1992);
- Certain products originating in the People's Republic of China and also released for
free circulation in the Principality of Andorra.
(d) Export licensing procedures
No such procedures are applied under Andorra's trade policy.
(e) Other measures, e.g. minimum export prices, voluntary export restrictions, orderly marketing
arrangements
No measures relating to the establishment of minimum prices, voluntary export restrictions or
orderly marketing arrangements, or measures of the same kind or having the same effect, are appliedin the Principality of Andorra.WT/ACC/AND/3
Page 26
(f) Export financing, subsidy and promotion policies
No measures of this kind are applied, except in the agricultural sector. (See point 4(b).)
(g) Export performance requirements
There are no export performance requirements in the Principality of Andorra.
(h) Import duty drawback schemes
Andorran legislation provides for no duty drawback schemes governed by conditions other
than the export, re-export or destruction of goods that are the subject of reimbursement.  (What is
involved in fact is refund or reimbursement, rather than a drawback scheme as such.)
Two systems of reimbursement of import duties are applied side by side, one providing for
partial reimbursement under national legislation, which is therefore limited to products under
Chapters 1-24 of the HS, the other allowing for total refund, which covers all HS products.
An import duty partial refund scheme is applied in the Principality of Andorra in respect of
certain agricultural products covered by Chapters 1-24 of the HS, which are re-exported following
prior importation.  This scheme is based on national legislation under the provisions of Article 20 of
the consumption tax law11.  Application of the scheme is based on the provisions of the regulations
governing commercial import/export transactions involving tax refunds, approved by the Government
on 19 October 1995.
In order to claim a partial refund of import duties, a number of conditions have to be met,
relating inter alia  to:
- The nature of the transactions: they mu st be commercial transactions involving
simultaneous import and export, or import followed subsequently by export;
- the condition of the goods: they must be imported "new", be re-exported in the same
condition and not have been used or processed during the time they remained on
national territory;
- the status of the beneficiary:  the partial refund claim must be lodged and
substantiated by the original importer who was required to pay the duty.
It should be emphasized that few claims are made under the import duty partial refund
scheme.
There is also a reimbursement scheme, including the possibility of full reimbursement of
import duties, applicable to all HS products.  The scheme has its legal foundation in the provisions of
Articles 220-227 of the national Customs Code, as well as in Article 19 of the consumption tax law(amendments are to be made to the Customs Code Law along the lines of point IV.1(h), last indent,
above, in order to cover some of the specific points contained in Article 19 of the consumption tax
law, with regard to products under Chapters 1-24 of the HS).
Full reimbursement of duties is possible mainly on the basis of particular circumstances
unrelated to the goodwill of the recipient, such as goods refused on account of defects, goods not in
conformity with contract stipulations, or again goods damaged during transport.
                                                     
11 See point (d).  For other du ties and charges, see point (i).WT/ACC/AND/3
Page 27
Some situations could also give rise to partial restitution, in cases where the duties paid were
higher than those actually payable.
3. Internal policies affecting foreign trade in goods
(a) Industrial policy, including subsidy policies
The basic customs laws recently established in respect of economic regimes are designed to
facilitate the development of regulations essential to the effective promotion of the industrial sector(Articles 99-157 of the national Customs Code).
(b) Technical regulations and standards, including measures taken at the border with respect to
imports
Two sets of prohibitions are applied under compulsory conformity rules concerning electricity
and gas.  The requirements under those rules concern essentially the importation, manufacture, sale
and installation of those products, including the following:
- The equipment and devices used in electrical installations must satisfy the
requirements of safety, size and quality specified in the corresponding implementing
regulations.  They must have type approval and certification in accordance with the
measures in force in the European Union.
Consequently, the manufacture, importation, sale and installation of equipment and devices
not covered by the necessary type approval or certification within the meaning of Article 6 of the
Regulations on low-voltage electrical installations, approved by the Government at its session on
2 November 1994, and amended at its session on 16 November 1994, are prohibited.
The Regulations lay down the conditions to be met by low-voltage electrical installations,
which are necessary to ensure personal and environmental safety and to combat other general
nuisances.
- On substantially the same basis and under the terms of the Regulations on gas
approved by the Government on 18 December 1996, equipment and devices imported
for purposes of consumption, storage, transport or other forms of handling of
petroleum-based liquid gas products are required, on pain of import prohibition, to
meet the type approval or certification standards in force in the European Union(Article 6 of the Regulations - LPG, natural gas).
- Additionally, mobile and retail gas containers may be imported only by authorized
distribution firms (Article 4 of the Regulations).
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
The sanitary legislation applied in Andorra with respect to sanitary controls is not very
elaborate.  There are no specific technical sanitary standards and the only legislative texts are the
following:
- With regard to the import, export and domestic production of foods and food
products, the Regulations on border sanitary inspection (BOPA (Official Journal) No.24, year 3, 12 June 1991, and BOPA No. 39, year 7, 19 July 1995), Article 7 of which
reaffirms the provision of Article 4 of the Regulations on food hygiene and control
(BOPA No. 23, year 5, 3 May 1993) to the effect that, in respect of any dispute and in
the absence of Andorran legislation, Community legislation shall be applied if it hasWT/ACC/AND/3
Page 28
been incorporated into the legislation of the neighbouring countries, France and
Spain.
- With regard to live animals, the regulations on livestock hygiene campaigns (BOPA
No. 48, year 4, 25 November 1992) provide the same requirements as European
legislation on monitoring and controlling of ovine, caprine and bovine brucellosis,
bovine tuberculosis, bovine pleuropneumonia and enzootic bovine leucosis.
Mention should also be made of the veterina ry protocol, supplementing the 1990 Agreement
between the European Community and Andorra , signed in May 1997, which gives Andorra an
additional legislative tool to achieve harmonization of national measures with European standards.
The protocol was due to enter into force on 1 March 1998 and is currently on hold pending a decision
by the Joint Committee on the procedures for its implementation.  It will serve to resolve the problems
arising from sanitary controls which affect trade in  live animals and products of animal origin at the
two border points.  Its implementation will contribute to the Principality's integration into the
European veterinary area and will lead to th e free movement of cattle and cattle products.
The protocol will provide for the adoption of  European decisions and their harmonization
with all veterinary and phytosanitary legislation concerning only live animals and animal products.An extension of the protocol can be envisaged, particularly to cover food products other than those of
animal origin.
(d) Trade-related investment measures
Andorra applies none of the measures set out in the illustrative list annexed to the Agreement
on Trade-Related Investment Measures, which are incompatible with the obligation to accord national
treatment (Article III .4 of the GATT 1994).
(e) State-trading practices
There is no State monopoly in the field of foreign trade.
(f) Free zones
There are no free zones in the Principality of Andorra.
(g) Free economic zones
No free economic zone exists in the Principality of Andorra.
(h) Trade-related environmental policies
Environmental policy in the Principality of Andorra is the responsibility of the Ministry of
Agriculture and the Environment.  Trade-related environmental issues are covered by provisions of
general scope, concerning public health and safety in particular.
Moreover, on 5 November 1996 the Government of the Principality of Andorra signed a
cooperation agreement with the Government of the French Republic on the transboundary movements
of waste.  The agreement reflects some of the principles contained in the Basel Convention of
22 March 1989, with due regard for the provisions of Community Council Regulation No. 259/93 of
1 February 1993.  Such an agreement was indispensable pending the commissioning of nationalinstallations needed for waste disposal or recycling, operations which moreover constitute a
prerequisite for ratification of the Basel Convention.  The agreement authorizes and regulates
transboundary movement of waste intended for disposal or recycling, from Andorra to France, based
on observance of a high standard of protection of the environment and human health.WT/ACC/AND/3
Page 29
(i) Mixing regulations
The remarks under point (h), first paragraph above, also apply here.  It should, however, be
pointed out that Andorra does not engage in any act ivities directly or indirectly connected with the
manufacture of toxic or equivalent products which might represent a particular hazard to the
environment.
(j) Government-mandated counter-trade and barter
There are no provisions on government-mandated counter-trade and barter.
(k) Trade agreements leading to country-specific quota allocation
No specific regulations have been adopted on this subject, although Andorra has been granted
an exemption from the textile quotas applied by the EC, on the strict condition that textile imports into
Andorra are intended for domestic consumption and are not re-exported to the EC.
(l) Government procurement practices
Government procurement in Andorra is governed by the Government Procurement Law ( Llei
de contractació pública ) approved by Parliament at its session on 30 December 1985.
The Law lays down the obligations and procedural rules for public or administrative contracts
concerning public works, public services management and the purchase of equipment and supplies
(Article 2.1).
As far as foreign trade in goods is concerned, its combined provisions establish certain
principles designed to ensure not only rational and efficient use of public funds, but also compliancewith the rules of fairness and transparency in government procurement.
The essential principles governing government contracts, with regard to the purchase of
movables, are set out in Articles 1-8 of the general provisions of the Law and, more specifically, in
Articles 41-48 and 50-54.  They include:
- Equality of treatment as a requirement for the selection of potential suppliers,
pursuant to Article 1.  Accordingly, no discrimination may be practised with regard to
the nationality of potential contractors, be they Andorran or foreign.  Similarly, there
is no provision for differential treatment in respect of the origin or provenance ofgoods covered by contracts;
- the power to award contracts, under Article 4.1, which is vested exclusively in the
different Government ministries and public law entities.  However, Government
approval is essential in the cases provided for in points 2.a and 2.b of the same
Article;
- compliance with the advertising and competition rules laid down inter alia  in
Article 6.3.
- Articles 41-48 specify the prerequisites for procurement procedures, as well as the
requirements to be met by the contracting authority and the firms awarded contracts(direct award – obligation to examine a minimum number of bids).
- Articles 50-54 deal inter alia  and more particularly with obligations relating to
control measures by the Ministry of Finance and guarantees.WT/ACC/AND/3
Page 30
(m) Regulation of trade in transit
The Principality of Andorra is a signator y to two regimes providing exclusively or
incidentally for the principle of transit with suspended application of duties and charges, one derived
from the EC-Andorra Agreement (Community transit), the other from accession to the ATA and
Istanbul Conventions.  The legal foundations for Community transit are set out in the EC-Andorra
Agreement of 28 June 1990, and particularly in Articl e 17.8 thereof, as well as in Decision 1/96 of the
Joint Committee of 1 July 1996 (BOPA No. 65, year 8, of 18 September 1996).  The latter wasadopted following the introduction by the Andorran  customs, as from 1 July 1996, of the formalities
pertaining to release for free circulation.  The Community transit provisions contained in Community
texts apply mutatis mutandis  to the movement of goods between the EC and the Principality of
Andorra.
The Community transit regime is restricted exclusively to the movement of goods covered by
the EC-Andorra customs union (Chapters 25-97 of the HS).  The possibilities for the exclusive use ofborder-to-border transit, involving certain commercial highway networks, are circumscribed by
national restrictions in respect of road safety and road traffic flow, taking into account the essential
importance attached to the highway network as the only national transit axis.
Following the approval by Parliament, on 14 May 1998, of the proposal for accession, the
ATA carnet procedure came into effect on 2 December 1998.  It provides for the adoption of the
provisions contained in:
- The ATA Convention;  and
- the Istanbul Convention, albeit initially only in respect of Annexes A, B1, B2, B3, B5,
B6, B7 and B9 (future accessions to the other Annexes are envisaged).
4. Policies affecting foreign trade in agricultural products
For an understanding of how policies concerning agricultural products operate, it is necessary
to review briefly the history of the primary sector.
This sector, which until the 1960s was the backbone of the Andorran economy, is nowadays
characterized by a loss of competitiveness.  In the 1950s, most of the working population was
employed in this sector, but this proportion had fallen to only 8.3 per cent in 1972 and today stands atonly 1.5 per cent.
The only primary activities of any importance today are tobacco growing and, to a lesser
extent, stock breeding; they have come to be the sole guarantor of the environment and the
countryside, an important asset for tourists visiting the Principality.  Although the importance of the
primary sector cannot be quantified, it makes a definite contribution to the generation of national
wealth.
The long-standing and ancient tradition of tobacco growing, a one-crop system in Andorra, is
one of the main sources of income for farmers.
Andorra is planning a reform of the primary sector with a view to guaranteeing its
sustainability and diversifying and revitalizing agricultural activity.  Draft legislation is being
prepared, which sets out the required guidelines for the farm sector in a mountainous country like
Andorra with such a highly-developed tertiary sector.  The draft agricultural reform is based on the
need to preserve a coherent structure that serves both to maintain and to develop agriculture and stock
breeding, under conditions of the kind required for mountain farming.WT/ACC/AND/3
Page 31
The Government is seeking by means of this reform to guarantee the income of the rural
labour force and to prevent the abandonment or desertification of cultivable land.
(a) Imports – i.e. comprehensive description of the types of border protection maintained
With respect to agricultural products, no specific measures are applied other than the tariff
measures described above or the protective border measures referred to in points 1(e) and 1(g) above.
(b) Exports – i.e description of the budgetary expenditure and any revenue foregone involved in
each of the export subsidy measures in place
The only export subsidy relates to definitive exports of live animals.  The subsidy amounts to
Ptas 1,000 per head of cattle exported (C 6.01).
Not only is the amount of the subsidy very small, but very few live animals are exported (see
the table below showing definitive export figures in respect of live animals).
TABLE 2
Definitive Exports of Live Animals
1996-1997
France Spain
1996 1997 1996 1997
Cattle 0 0 689 501
Equine animals 1 0 280 195
S h e e p 00 00
Source:  Ministry of Agriculture.
(c) Export prohibitions and restrictions
There are no restrictions on exports.
(d) Export credits, export credit guarantees or insurance programmes
Andorra has two insurance programmes, one for tobacco, the other for stock breeding, in
order to guarantee income security for farmers.
This insurance scheme will also be amended by the future law on agriculture, which is
intended not only to safeguard an acceptable standard of living  for farmers, but also to protect the
environment by maintaining agricultural activity, the aim being to preserve the beauty of the
countryside, to protect the environment and to foster profitable farming activity.
(e) Internal polices - i.e. description of, and the budgetary expenditure and any revenue foregone
involved in each of the domestic support measures in place
Domestic support measures are applied in respect of:WT/ACC/AND/3
Page 32
- All breeding stock (sheep, cattle, goats, equine animals);
- agricultural machinery;- preferential treatment for social security contributions;
- contribution to the payment of insurance premiums;
- grants for the marketing and definitive export of cattle.
5. Policies affecting foreign trade in other sectors
(a) Textiles regime
The textiles sector is not covered by any specific policy other than the provisions binding on
the principality of Andorra under the EC-Andorra Agreement (see points 1(e)(ii) and 2(ii) above).
(b) Policies affecting foreign trade in other major sectors
There is no specific domestic policy affecting foreign trade in other major sectors of the
economy, other than those described above.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
Until 1993, intellectual property legislation consisted of the 1971 Copyright Law.  Since then,
the Principality of Andorra has gradually updated it legislation.
The process began with harmonization of Andorran trademark legislation, and the 1996
Trademark Law is in conformity with the TRIPS and the Paris Convention.
Andorra has a wholly automated Trademark Office, but it only accepts electronic forms and
this is not consistent with the Trademark Law Treaty.
In 1998, the Government submitted two draft laws:
- The draft Law on Copyright and Related Rights, to promote copyright-related
activities and protect authors' interests;
- the draft Patent Law, under which patents owned by Andorran natural or juridical
persons
12 will be protected abroad and, through reciprocity, holders of patents all over
the world will enjoy protection in Andorra.
These two draft Laws are in conformity with th e principal international treaties and with the
TRIPS and are currently awaiting approval by Parliament.
The Government is also preparing a draft law on the protection of geographical indications,
industrial designs and unfair competition.
                                                     
12 Legal persons.WT/ACC/AND/3
Page 33
(b) Responsible agencies for policy formulation and implementation
Intellectual property policy is formulated by the Ministry of the Presidency, which
implements it through the Trademark Office.  While awaiting approval of the two draft Laws (on
copyright and patents), this Office deals exclusively with the registration and administration of
trademarks.  It will eventually become Andorra's Intellectual Property Office.
(c) Membership of international intellectual property conventions of regional or bilateral
agreements
Andorra has been a member of the WIPO since 1994 and is considering acceding to the Paris
Convention once the Patent Law has come into effect.  It will then consider acceding to the Madrid
Agreement concerning the International Registration of Marks and the Patent Cooperation Treaty
(PCT).
Andorra has also concluded preliminary agreements on the territorial extension of the
European Patent Convention (EPC) to Andorra.
Accession to the Berne Convention, the Rome Convention and the two WIPO Treaties of
1996 are a follow-up to the revision of Andorra's legislation.
(d) Application of national and MFN treatment to foreign nationals
National and MFN treatment to foreign nationals are guaranteed by the three Laws mentioned
above.
(e) Fees and taxes
The law on the fees imposed by the Trademark Office implements Article 40 of the
Trademark Law.  The following are the fees payable for services by the Trademark Office.
• Registration and renewal:
- Registration or renewal concerning products or services corresponding to one,
two or three classes in the Nice Classification: Ptas 20,000 (C 120.2)13;
- registration or renewal for each additional class beyond three: Ptas 3,000
(C18.03);
- additional fee for registration or renewal of a collective mark: Ptas 3,000
(C18.03);
- additional fee for renewal within the grace period according to Article 13.3 of
the Trademark Law:  50 per cent of the amount of the renewal fee.
                                                     
13 Exchange rate used: Ptas 1,000 = C 6.01.WT/ACC/AND/3
Page 34
• Complementary services:
- Additional fee for claiming a right of priority:  Ptas 3,000 (C 18.03);
- additional fee for a figurative mark in black and white: Ptas 3,000 (C 18.03);
- additional fee for a figurative mark in colour: Ptas 5,000 (C 30.05);
- additional fee for a mark in colour: Ptas 3,000 (C 18.03).
• Registration and amendment:
- Fee per registration for recording a transfer: Ptas 15,000 (C 90.15);
- fee for each registration of the award of a licence, a mortgage, transfer or any
other registration: Ptas 5,000 (C 30.05);
- each change of the name or address of the owner: Ptas 5,000 (C 30.05);
- each registration of a disclaimer: Ptas 5,000 (C 30.05);
- each rectification of a mistake: Ptas 5,000 (C 30.05).
• Research and certification services:
- Search for documents in a registration file: Ptas 5,000 (C 30.05);
- each certification of recording in the register: Ptas 5,000 (C 30.05).
• Accreditation of an agent:
- Examination, accreditation and recording in the register of the person
authorized:  Ptas 100,000 (C 601.01);
- training courses for agents and others: Ptas 1,000 (C 6.01) per hour.
2. Substantive standards of protection, includi ng procedures for the acquisition and
maintenance of intellectual property rights
Chapter IV of the Trademark Law provides that the effects of registering  a trade mark shall
include the rights conferred by registration (Article 14), the limitation on the rights conferred by
registration (Article 15), and the exhaustion of the rights conferred by registration (Article 16).
(a) Copyright and related rights, including rights of performers, producers of phonograms and
broadcasting organizations
The Law on Trademarks and Related Rights provides substantive standards of protection and
it is currently before Parliament.
(b) Trademarks, including service marks
Rights are acquired through registration; well-known marks are protected in conformity with
the Paris Convention.WT/ACC/AND/3
Page 35
The term of registered marks is ten years and they can be renewed indefinitely upon payment
of the renewal fee.  Simple use of marks does not give the right to any form of protection.
(c) Geographical indications, including appellations of origin
For the moment, there is no legislation on geographical indications or appellations or origin,
but a draft has been prepared.
(d) Industrial designs
There is as yet no legislation
(e) Patents
The Patent Law provides substantive standards of protection and it is currently before
Parliament.
(f) Plant variety protection
There is as yet no legislation
(g) Layout designs of integrated circuits
There is as yet no legislation
(h) Requirements on undisclosed information, including trade secrets and test data
There is as yet no legislation
(i) Any other categories of intellectual property
There is as yet no legislation
3. Measures to control abuse of intellectual property rights (for the Trademark Law)
Article 29 of the Trademark Law provides for the right to bring proceedings.
Infringement of the rights of the owner of a regi stered mark gives rise to the civil and criminal
liability of the offender.
The owner of a registered mark may bring any relevant civil or criminal proceedings before
the judicial authorities against any person infringing his rights.  Proceedings may also be brought bythe holder of an exclusive exploitation licence unless the contract stipulates otherwise if, after being
warned, the owner does not exercise his rights.
4. Enforcement
(a) Civil judicial procedures and remedies
As a preventive measure, the judicial authorities may prohibit the continued infringement of
the rights of the owner of a registered mark and enforce their ruling or they may order the deposit ofsecurity to compensate the owner of the right or holder of the patent if necessary.
Owners of  registered marks or holders of exclusive exploitation licences may request the
judicial authorities, assisted by experts of their choice, to draw up a detailed description (with orWT/ACC/AND/3
Page 36
without taking samples) or to confiscate the products which they allege have been marked, put up for
sale, delivered or supplied causing them prejudice and infringing their rights, or if the mark is used forservices they may request the seizure of the elements used to supply the service.
(b) Provisional measures
The Trademark Law does not provide for any provisional measures.
(c) Any administrative procedures and remedies
The Trademark Law does not provide for any administrative procedures or remedies.
(d) Any special border measures
Subject to Article 16.1 on exhaustion of rights conferred by registration, the customs
administration may, if ordered by the judicial authorities acting at the request of the owner of the
registered mark or holder of an exclusive exploitation licence for a registered mark, detain goods,even if they are in transit, if they bear a mark  which the owner or holder of the exclusive licence
considers is an infringement of the rights conferred by registration of the mark.
(e) Criminal procedures
Any person who in bad faith infringes the rights of the registered owner set out in Article 14
shall be punished by the penalties provided in the Criminal Code.
The judicial authorities may order the full or partial publication of the conviction in the
newspapers it specifies, at the expense of the infringer.
The judicial authorities may order the confiscation of the products and the implements used to
commit the offence.  It may also require thei r destruction at the expense of the infringer.
5. Laws, decrees, regulations and other legal acts relating to the above
There are no laws, decrees or regulations concerning the above.
6. Statistical data on applications for and grants of intellectual property rights, as well as
any statistical data on their enforcement
As the only law presently in force is the Trademark Law, the statistics only concern marks.
In 1998, 12,000 marks had been registered with the Trademark Office, and there have been
14 disputes, six of them civil and eight administrative.
VI. TRADE-RELATED SERVICES REGIME
1. General introduction and description of the regulatory structure of the services sectors
(a) General description of the overall market structure
As mentioned above, Andorra's economy has a very  strong services sector directed towards
trade, tourism and finance.
As far as the reference framework for services is concerned, the legislation on each sector has
been liberalized.  Article 28 of the Constitution proclaims the principle of free competition:  "FreedomWT/ACC/AND/3
Page 37
of enterprise is recognized in the context of the market economy and is exercised in accordance with
the law."
The regulatory structure of the services sector is based on two essential texts, the Decree of
10 October 1981 on Business Permits and the Regulations of 19 May 1983 on Business Firms, which
has the status of law.  Both texts apply across the board to all sectors, except for the financial branch.
In 1998, a text on the banking sector eased certain restrictions in the Law on Business Firms.
In Andorra, services can be supplied by a natural or legal person, except in the case of
financial institutions, which must be in the form of a public limited company under Andorran law.
Commercial activities, however, require a permit to open a business, issued by the Ministry of the
Economy.  In addition, the law does not allow nominees, in other words nominee contracts are not
legally recognized.
Services covered by the Decree on Business Permits are supplied by natural persons and only
Andorrans or persons resident in Andorra for over 20 years may set up a business in this form.
Furthermore, residents are restricted to opening one business.  The Law on Business Firms specifies
the type of company that may be set up in Andorra, in the form of a public limited company, a private
limited company or a partnership.  The Law also defines inter alia the minimum capital, the policy on
compulsory reserves, the management bodies and the limit on foreign capital.
Foreign capital is limited to 33 per cent of a firm's total capital.  There are two exceptions to
this rule:  companies declared to be of public interest and companies that have a State concession, for
which the maximum foreign capital is fixed in by  the Government decree authorizing the company
(Article 3 of the Law on Business Firms), and companies involved in banking activities are allowed
up to 51 per cent of foreign capital (Law of 30 June 1998 on the establishment of new banking
institutions under Andorran law).
Persons carrying out economic activities (in all sectors) must pay an annual fee in order to
appear on the register of owners.  The Law of 20 December 1995 on the fee for registering persons
exploiting economic activities provides for three registers:  for business firms, trade and industry, and
the professions.
In addition to the general texts on the legal structure and foreign capital participation, there
are a number of sectoral regulations.
(b) Regulatory structure of the most prominent services sectors
Professional services:  professional occupations
The exercise of professions in Andorra is regulated by the Decree of 11 July 1977 issued by
Parliament (Consell General), which reserves the exercise of the professions almost exclusively to
Andorran natural persons or persons resident in Andorra for over 20 years possessing the necessaryqualifications.  The aim of the Decree is to give Andorran professionals the opportunity to carry out
their activities in their country of origin and at th e same time to ensure that Andorra has professionals
with the necessary skills.  This text does not apply to services rendered on a temporary basis to a
particular person.
Applications to exercise a profession are sent to the Ministry of the Interior of the
Government, which grants the application if the nationality, residence and qualifications requirements
are met.  Pursuant to the Decree of 15 December 1997, foreign persons must deposit a sum of money,
Ptas 300,000 or 700,000 (C
1,803.03 or 4,207.08) depending on the level of their diploma and this
amount is refunded when they become Andorran nationals, cancel their permit or are authorized bythe Government to exercise their profession for a specified period.  The security is repaid each year at
the legal money rate.WT/ACC/AND/3
Page 38
Sectoral regulation of the professions
- Exercise of the medical profession
On 7 October 1971, Parliament approved a Decree restricting the exercise of medicine to
Andorrans and persons resident for over 20 years possessing the required medical qualifications.  It
also suspended the issue of permits to foreigners .  Foreigners may, however, exercise medicine in
hospitals.  More generally, exceptions are allowed if exercise of medicine is essential for the interests
of Andorra.
For example, exercise of the medical profession in ski resorts is exempt from the nationality
and residence requirements if there is the necessary demand (Regulations of 15 July 1993).
On 31 July 1980, Parliament approved a Decree regulating the exercise of paramedical and
parasocial professions, restricting access to these professions to qualified opticians and orthopaedists
and applying the same conditions of nationality as for the other professions.
- Exercise of the profession of solicitor ( notaire )
The Law on Solicitors of 28 November 1996 defines and regulates the profession of solicitor
as a person with public authority in accordance with Andorra's traditions and the constitutional
principles of legality, legal security and the liabil ity of public authorities.  Solicitors enjoy autonomy
in carrying out their functions but, their organizational structure is the responsibility of the Ministry in
charge of judicial matters.
Article 16 of the Law defines the conditions for exercising the profession of solicitor.  The
person must be of Andorran nationality, be at least 25 years of age, have no criminal convictions, be a
law graduate and pass the capacity and technical aptitude tests.  Recruitment is subject to a
competition.
The minimum number of solicitors is four, with a maximum of one solicitor per 10,000
inhabitants.
- Exercise of the profession of translator or interpreter (Law of 20 June 1996)
These professionals must be authorized to exercise their profession, possess the relevant
qualifications, pass the examination and swear an oath.
- Private detectives
The Decree of 21 May 1992 regulates the exercise of the profession of private detective,
which is subject to passing an examination.
Communications services- Postal and courier services
These are public services provided by the French and Spanish authorities:  La Poste et
Servicios de Correos y Telégrafos .
Postal services in the Principality have never been organized according to domestic
regulations but through international agreements.  The Paris Convention of 1 June 1878, the
Washington Convention of the Universal Postal Union of 15 June 1897, and the Congresses at Rome
(1906), and Stockholm (1921) considered that Andorra came under the Spanish postal authorities.  OnWT/ACC/AND/3
Page 39
1 May 1928, the Episcopal Co-Prince laid down the bases for this service with the Spanish
Government.
Subsequently, the Congress of the Universal Postal Union at London in 1929 gave the French
authorities the right to organize their own postal service in Andorra.  Finally, on 30 June 1930, the
French and Spanish authorities signed a convention on postal services in the Principality and this is
still in effect.
Telecommunication services
In Andorra, telecommunication services are a public service administered by a State-owned
company which is a State monopoly.  The rules governing the Andorran Telecommunications Service
(STA) date from 25 April 1984.  On 30 June 1994, Andorra joined EUTELSAT and the ITU.
The social purpose of the STA, established in the Regulations of 25 April 1984, which have
the status of law, is the exclusive management and exploitation of telecommunication services in
general and more particularly telephone, radio, telex, data transmission and other auxiliary or
complementary telecommunication services in Andorra.
Any changes to the charges for these services must be approved by the Government.
Audiovisual services
Frequencies, channels and the orbital positions of geostationary satellites are a State
monopoly.  The services are operated through a joint system:  the Government may grant
administrative concessions for the private exploitation of frequencies, channels and orbital satellitepositions to cover Andorran territory or a larger area.  These provisions can be found in the Law of
12 October 1989 (as amended on 13 July 1992) on broadcasting and television and they have been
reaffirmed by the ruling of the Andorran Supr eme Court of Justice, No. 98-34, of 23 June 1998.
The Law of 12 October 1989 considers broadcasting and television to be an essential public
service to the community and establishes a joint operating system:  public (direct management) by
ORTA, and private (indirect management) under an administrative concession.  The Andorran Radio
and Television Organization (ORTA) is a public law body.
Construction and related engineering services
There is no specific legislation regulating construction and related engineering services, but
there are regulations on opening commercial establishments for the sale and installation of gas
(Regulations of 18 December 1996), as well as technical standards for lifting equipment (Regulations
of 23 August 1995), and low-voltage electrical installations.
The Law of 6 April 1995 on access lays down a certain number of obligations on access by
disabled persons to buildings and new public premises, subsidized housing or housing financed in partby the Government, and residential dwellings.  Owners have a grace period in which to adapt existing
buildings to the standards fixed in this Law.
Distribution services
General trade legislation applies, namely:
- The Law on Business Firms ( Reglament de societats mercantils ) of 19 May 1983;
- The Decree on Business Permits of 10 October 1981.WT/ACC/AND/3
Page 40
Education services
Article 20 of the Constitution proclaims freedom of education and the right to set up teaching
centres.
The Basic Education Law of 3 September 1993 puts these principles into effect and draws a
distinction between public and private centres.
In 1982, the Government promoted the creation of a national education system: Andorran
schools.  Until then, primary and secondary education were dependent on the French or Spanish
systems.  This situation changed with the 1982 Decree on schools and the French Co-Prince's Lycée
in Andorra, on the one hand, and the 1981 convention between the Episcopal Co-Prince and the
Spanish Government on the other.
In order to respond to actual demand on the labour market, in 1988 two training centres, the
computer school and the university nursing school, were set up within the Andorran education system.
These two centres are part of the University of Andorra pursuant to the Law on universities of
30 July 1997.
The Law affirms the fundamental nature of education and makes school attendance
compulsory and free up to the age of 16, gives adults the right to basic training and establishes the
principle of access to higher education.  Following the proclamation of the right to education as a
fundamental right in the Constitution, mechanisms have been set up to put this into effect.  Several
education systems can coexist in the Andorran education structure, the only condition being that an
agreement must be drawn up in advance in the form of a convention.
For education centres, the Law draws a distinction between public and private establishments.
The definition of public centres is very broad and includes those answerable to the State authorities as
well as those set up under a convention, contract or other formula with Government approval that
meet public needs.  Private centres may exist side-by-side with public centres pursuant to theconstitutional principle of freedom of education and freedom to set up education centres.  For private
centres
14, the State simply verifies and ensures that th ey provide teaching under conditions that fulfil
the constitutional right of students to receive education adapted to the integral development of their
personality and dignity, respecting their fundamental rights.
The Law also covers education centres that provide teaching according to the Spanish or
French education systems.  These centres come under the government authorities of the countries
concerned.
Higher education services
The Law of 30 July 1997 on universities allows the establishment of public or private higher
education centres.  The official teaching language is Catalan, but other languages may also be used.
Andorra's university structure is determined by the special characteristics of a small country
without any university tradition whose population is not sufficient to provide the demographic basis
for a full-scale university.  The Law therefore provides a pragmatic and realistic response to these
problems and the structure is based on the following essential elements:
- Priority is given to teaching and scientific research related to the special features of
Andorran history, culture and society, and also to practical and specific interests;
- cooperation agreements are signed with prestigious universities so that:
                                                     
14 Regulations on private centres of 23 November 1994.WT/ACC/AND/3
Page 41
(i) Andorran students can study there bearing in mind the equivalence
requirements imposed by the Andorran academic authorities and the diploma
approval criteria fixed by the administrative authorities;
(ii) university-level education in Andorra given by lecturers from these
universities is encouraged;
(iii) the proper scientific and technical training of Andorran nationals is ensured;
education is at a high intellectual level and best adapted to Andorra's cultural
and social needs;
(iv) participation by civil society in higher education is facilitated, both through
private universities and support given by the private sector to the publicuniversity.
Education centres may be public, non-State public or private.  Non-State public and private
centres must be set up under a special law.  Private centres are subject to the Law on Business Firms
and their director must be an Andorran national, pursuant to the Law on universities.  At the moment,the University of Andorra has a partnership with the University of Catalonia ( Universitat oberta de
Catalunya ).
Environmental services
Environmental services are the responsibility of the authorities, either the Government or
local authorities ( Comuns ).
The Basic Law of 4 November 1993 on the competence of local authorities defines the
responsibilities given to local authorities:
- The exploitation of communal natural resources;
- general waste water, rain water and sewage pipes.Although the public authorities are solely responsible for environmental services, they may
subcontract these to private or joint-capital companies.  The Law on Government Procurement and the
Administrative Code allow public sector services to be the subject of an administrative concession.
This involves calling for bids from companies likely  to be interested in subcontracting and the service
will then be subcontracted to them subject to pa yment of a fee to the administrative authorities.
Financial services
15
- Insurance
Under Andorran law, insurance activities are go verned by the Law of 11 May 1989 and by the
Law on Business Firms.
The Law of 11 May 1989 prescribes that all risks in Andorra must be covered by Andorran
insurance companies or foreign companies authorized to operate in the Principality.  Article 7 of the
                                                     
15 The financial sector presently consists of six banking institutions, of which four have foreign capital
participation.  The following banking institutions are present in Andorra, in order of the importance of theirassets:  Crédit Andorra, Banc Internacional/Banca Mora (group), Banc Agrícol i Comercial d'Andorra,
Banca Reig, Caixa Bank, Banca Privada d'Andorra .  Other companies in this sector mainly manage assets and
are much smaller.WT/ACC/AND/3
Page 42
Law does, however, allow risks related to goods in international transport and cases where the risk
exceeds the insurance capacity of the Andorran market to be covered abroad.
The exercise of insurance and brokerage activities requires a permit from the Government.Foreign companies may operate in Andorra through a delegate, who must be a legal person
under Andorran law, a natural person of Andorran nationality, or a foreigner resident for over20 years possessing the right to do business.
- Banking and other financial services
For many years, the banking and other financial services market was closed and consisted of
only six banking institutions allowed to operate in the Principality.  This situation changed with the
adoption of the laws opening up the banking system in 1998.
The Law on the Organization of the Financ ial System (LOSF) of 27 November 1993,
amended by the Law of 19 December 1996 regulating the operating facilities of various components
of the financial system, governs participation in the banking and financial services market and defines
the conditions required for entering this sector.
The financial system is made up of operational components, namely, banking institutions,
non-banking financial institutions offering special credit facilities, investment institutions, and various
financial services institutions, the professional associations of the financial sector, and the executive
technical authorities.
Article 12 of the LOSF and the Law of 19 December 1996 fix the following criteria for
institutions seeking to enter the financial system:
- Personal and professional status of the owners (they may not under any circumstances
have criminal convictions and they must possess proper professional qualifications);
- the legal status of the institution (permits are only given to legal persons under
Andorran law);
- the type and amount of registered capital;- the establishment of compulsory reserves;- coverage of the compulsory coefficients for the sector concerned:  the coefficients for
the financial structure are covered by the Law of 11 May 1995 regulating reserves
guaranteeing deposits and other liabilities and the Law of 29 February 1996
governing the solvency and liquidity criteria for financial institutions;
- the compulsory investment coefficients covered by the Law of 30 June 1994;- the technical and administrative structure (proof must be given that the technical and
administrative structure is sufficient for the activity);
- the obligation to audit the accounts and to maintain strict professional secrecy.
The Andorran Criminal Code punishes the offence of laundering money and disclosing
confidential information, in relation to banking secrecy, under the Law of 11 May 1995 reforming theCriminal Code and the Law of the same date on protecting banking secrecy and preventing the
laundering of money or the proceeds of crime.WT/ACC/AND/3
Page 43
The activity of banking institutions in the insu rance sector is restricted:  they may not be
involved in the management of investment bodies or insurance companies, with the exception of lifeinsurance.  Their participation may not exceed 25 per cent of the capital of the branch and their total
participation (at net accounting value) in non-financial institutions may not exceed 40 per cent of the
equity capital of the banking institution.
The components of the financial system are governed by the INAF and by the Higher Finance
Commission, set up by the Law of 12 June 1989, as amended by the Law of 2-3 September 1993 and
the Law of 27 November 1993 on the Organization of the Financial System respectively.
On 30 June 1998, the financial system in Andorra was opened up under laws permitting the
establishment of new banking institutions under Andorran law, regulating the basic administrative
regime for banking institutions, and fixing their minimum registered capital under Andorran law.
There has been gradual and prudent opening up.  The Government is responsible for
authorizing the establishment of new banking institutio ns.  Candidates must be established in the form
of public limited companies under Andorran law and foreign capital is limited to a maximum of
51 per cent.  The criteria for banking institutions setting up in Andorra are fixed in the Law of
30 June 1998 regulating the basic regime for banking institutions.  Lastly, the minimum registeredcapital for these new institutions is set at Ptas 5 billion (C
30 million) pursuant to the Law of
30 June 1998 regulating the minimum registered capital for banking institutions under Andorran law.
Health-related and social services
Andorra's health system is governed by the General Health Law of 20 March 1989.  This
defines the Andorran health system as a mixed system in which all the structures are integrated,
together with hygiene-related services, public health  and individual and collective health care.  As it is
a mixed system, it also includes the Andorran Healthcare Service (SAAS) and brings together the
services under direct Government supervision, those responsible to the Government, and privateservices.  Health professionals may therefore practise freely and structures and services wishing to
operate under the private enterprise regime are free to carry on their activities.
Health professions are governed by Articles 69 and 70 of the General Health Law.
The establishment of health and socio-health centres, services or facilities is governed by the
Decree of 18 December, 1996.  Public or private health or socio-health centres, facilities and services
require an administrative authorization in order to open, change, close or move.  The Decree also lists
the activities that may be practised by private centres.
Health services in Andorra are managed and supervised by the Andorran Healthcare Service,
which is a State body set up by the Law of 23 December 1986.  It is responsible in particular for themanagement and administration of all public resources allocated to health.
The Andorran Healthcare Service has the following responsibilities:
- To develop and carry out the health promotion activities and programmes approved
by the competent bodies;
- to cooperate with other health-related public or private organizations;- to develop and carry out programmes to monitor the quality of health care.
The SAAS has three main axes:  the Andorran hospital complex, the primary health care
service, and health inspection.WT/ACC/AND/3
Page 44
The social security organization (the Ando rran Social Security  Fund (CASS)) collects
contributions from the insured, finances the health services for beneficiaries and administers the Statepension regime (old age, invalidity, widows' and orphans' pensions).
Tourism and travel-related services
There are no regulations specific to this sector:  it must respect the general principles
applicable to businesses, companies and the professions and meet safety and hygiene standards (safetystandards on fire in public places, swimming pools, etc.).
There are, however, some specific texts on the quality of services:
- The number of tourists and the increase in mountain sports in general has meant that
professionals working in these services must have adequate teaching skills and
respect standards that ensure the safety and quality of these services.  The Law of14 December 1996 therefore set up the professional training school for mountain
sports and activities in order to provide professionals working in this sector with
technical, theoretical and practical training.  The teaching of skiing and the profession
of instructor are governed by the Law of 20 June 1996.  This establishes a teaching
system specifically for skiing and allows the setting up of teaching centres.  Theestablishment and operation of private centres requires the relevant administrative
authorization and all instructors must be in possession of the diploma issued or
approved by the Government through the training school for mountain sports and
activities.
- Tourist accommodation is covered by the General Law on Tourist Accommodation of
30 June 1998, which classifies various categories of tourist accommodation in order
to guarantee quality standards for clients and respect their rights as consumers.
- Andorra became a member of the World Tourism Organization on 5 February 1996.
Recreational, cultural and sporting services
There is no specific legislation on recreational, cultural and sporting activities, but the
majority of these services are supplied by the public sector, both the Government and the local
authorities ( Comuns ).  The Ministry of Tourism and Culture defines the broad outline of cultural
policy at the national level, including the promotion of culture, the opening of museums, subsidies to
cultural bodies, etc.  The competence of local authorities in this sector is specified in the Law
delimiting the competence of local authorities.
In addition, Andorra is a member of the following cultural organizations:- On 30 June 1994, accession to UNESCO and to the London Agreement of
16 November 1945 adopting the Constitution of the United Nations Educational,
Scientific and Cultural Organization;
- ratification of the Paris European Cultural Convention on 22 January 1996;
- accession to the statutes of the International Centre for the Study of the Preservation
and Restoration of Cultural Property;
- member of ICOM and ICROM;
- accession to the European Convention on the Protection of the Archaeological
Heritage (14 May 1998).WT/ACC/AND/3
Page 45
Regarding sporting services, the Law on Sport was adopted on 30 June 1998.  It constitutes
the reference framework for this sector and defines the objectives and guiding principles of sport.  It
governs non-profit making sports bodies and relations between these and the Government and bodies
competent for sports matters. The presidents and natural persons representing sports federations must
be Andorran citizens.
Profit-making sports facilities are subject to the general rules on business and the provisions
of the Law on Sport.  Services supplied by these facilities must respect the health, hygiene and
competence requirements.
Transport services
Road transport
(a) General framework
The principal instrument in this respect is the Law of 4 November 1993, subsequently
implemented by the Regulations of 15 December 1993.  These define the criteria for carrying out road
transport activities.  They provide the general fr amework governing the road transport of passengers
and goods both in the public and private sectors.
Natural or legal persons wishing to operate a public road transport service must be registered
in the General Register of Transporters.  They must fulfil the requirements on professional and
economic capacity and repute and obtain a permit in accordance with the general rules governing
business, the establishment of businesses or industries.  There are three sections in the GeneralRegister of Transporters:  transport of passengers, transport of goods, and combined passenger and
goods transport.  The permit is only valid for the activity registered.
The texts also regulate compulsory stops and breaks.  Andorra has signed the
European Agreement concerning the work of crews of vehicles engaged in international road transport(AETR), done at Geneva on 1 July 1970, and deposited its instrument of accession on
13 February 1997.
(b) Passenger transportation
In addition to the aforementioned general framework, passenger transport is governed by the
Law of 11 October 1985 on the public road transport of passengers.  This text has in fact been
incorporated into the Law of 4 November 1993, which establishes general criteria for all types of
transport.
As regards public transport of passengers, the Law of 11 October 1985 distinguishes between
scheduled transport services and taxi services.
Scheduled transport services
At present, urban and interurban public transport is operated by a transport company that is
the sole operator on the market.  By law, the Government is responsible for scheduled transport
services and for the setting up of such services.  The operation of the services is the subject of aconcession given to transport operators following a public tender.  The tariffs for this service are fixed
by the Government each year in a decree.WT/ACC/AND/3
Page 46
Taxi services
In addition to the general criteria (registration in the Register of Transporters), operating a
taxi service requires a licence and the necessary professional capacity (authorization to open a
business).  The Government restricts the number of licences according to need.  The licences are
allocated in a public bidding process.  Due to high demand, the Government only allocates one
transport permit per licence.  The transport permit is for one vehicle and ensures that it meets the
safety requirements fixed for public transport.
Taxis use a meter and the rates are fixed by the Government in a decree.
International passenger transport
Pursuant to the Decree of 4 March 1998, and in accordance with the principle of reciprocity
of 6 June 1952, a foreign transport company may not carry passengers within Andorra, however,"closed door" transport is not deemed to be a domestic service.
Andorra applies the Agreement on the international carriage of passengers by road by means
of occasional coach and bus services (ASOR) (Dubli n, 28 May 1982).  This Agreement simplifies the
control and authorization formalities required to operate international services between signatoryStates.  Although Andorra has not signed the Agr eement, it observes the provisions so occasional
services between France and Spain and Andorra respect these provisions.
Shuttle services and scheduled international services are not covered by the ASOR:  in
Andorra, the Government, together with the Ministries of Transport in neighbouring countries,authorizes these services and in general each country has about 50 per cent of the traffic.
(c) Freight transportation
The international road transport of goods is covered by the following provisions:
- The principle of reciprocity with neighbouring countries of 6 June 1952 (which also
applies to passenger transport);
- Decree on the conditions for operating international road transport of goods of
28 November 1990;
- Decree on the conditions for operating international road transport services with
Spain of 13 February 1991;
- Decree on the conditions for operating international road transport of goods of
27 July 1995;
- Decree on the conditions for the road transport of goods and passengers of
4 March 1998.
The 1990 Decree restricts the number of foreign dispatchers to three and the number of
distribution points for the loading and delivery of goods.  In other cases, the entire load must be
delivered at a single point.  Some goods are exempt  from this obligation, for example, medicines and
animals.  The Decrees of 1991 and 1995 allow certain exemptions from this general rule in favour of
Spanish and French transporters.
According to the Decree of 4 March 1998, foreign transporters of goods may only load goods
intended for Andorra if they come from the same place as the place of registration of the vehicle andWT/ACC/AND/3
Page 47
they may only load goods leaving Andorra if their destination is the same as the place of registration
of the vehicle.  Cabotage within Andorra by foreign transporters is prohibited.
These standards were set in order to protect the interests of Andorran transporters, who are
not allowed to undertake triangular or multilateral transport.  The measure is advantageous to
transporters in neighbouring countries:  only nati onal companies may transport their countries' own
products to Andorra.
In addition to the ban on triangular or multilate ral transport, Andorran transporters must apply
to the Andorran Government for a permit to supply services outside Andorra's borders.
For France, there are two types of permit:
- Short-distance permits:  these are for transport for up to 200 km. around Perpignan;
they are valid for a period of three months and authorize an indefinite number of
services;
- long-distance permits:  these authorize the Andorran transporter to provide a single
service beyond the short-distance zone (200 km.).  There is a limit of 400 permits peryear and this appears to be sufficient for the moment as the Government only issued
370 in 1998.
For Spain, the Andorran Government grants inte rnational transport permits valid for services
all over Spain.
These permits are granted free of charge upon request to the department responsible for
transport.  Agreements are negotiated and recorded  in the minutes of the bilateral transport meetings
with neighbouring States.
Air transport
The rules on air transport only concern overflying of Andorran territory by helicopters and the
use of helicopters in the Principality of Andorra (Decrees of 2 April 1992).  The police control
passengers and goods transported by helicopter.  Overflying Andorran air space, landing and taking
off require Government authorization, with the exception of rescue services and the emergencytransport of the injured.
Authorizations allowing foreign operators to land in Andorra are subject to the international
principle of reciprocity.
An aviation law is being prepared and the Ministry of the Economy is considering applying
for membership of the International Civil Aviation Organization (ICAO).
Rail transport
There are no special regulations on rail transport because there are no railway lines in
Andorra.
On 7 January 1999, an international public tender was put out to select a civil engineering
company to build a non-conventional urban passenger transport system.
Transport of fuels
Although Andorra has not signed the European  Agreement concerning the international
carriage of dangerous goods by road (ADR certificates, which cover the technical aspects of theWT/ACC/AND/3
Page 48
transport of dangerous goods and the vehicles used), it applies the Agreement's rules.  The technical
standards for the transport of such g oods are laid down in the Traffic Code.
Transport of perishable goods
Here again, even though Andorra has not signed the Agreement on the International Carriage
of Perishable Foodstuffs (ATP), it applies the pr inciples, which are set out in the Hygiene and Food
Inspection Regulations of 21 April 1993.  The border health inspection service inspects these goodswhen they enter customs.  If the perishable goods are not transported in such a way as to guarantee
their quality and hygiene, they are not allowed to enter Andorra.
2. Policies affecting trade in services
(a) Government departments, agencies, professional associations or other bodies with authority
or a role relevant to the conduct of service activities
The body that plays the most important role is the Ministry of the Economy, particularly its
Trade and Industry Department ( Departament de Comerç I Indústria ).  It administers the Register of
Business Firms and the Register of Commerce and Industry.  It grants business and industry permits,
enters them in the correct register, together with the date on which they become valid, and supervises
the application of the regulations on hygiene, safety, etc.
The Register of Persons Authorized to Practise a Profession is administered by the
Department of Labour, under the Ministry of the Interior, which monitors and authorizes the practice
of professions.
The Chamber of Commerce, Industry and Services ( Cambra de Comerç, Indústria i Serveis
d'Andorra ) also has a role to play in representing and protecting the general interests of business,
industry and services.
In addition to these official bodies, there are also professional associations which play a role
in service activities, for example, the Association of Andorran Banks (ABA – Agrupació de Bancs
Andorrans ), the Employers' Association (PDP – Patronal del Principat ), the Association of Real
Estate Agents (AGIA – Agrupació de Gestors Immobiliaris d'Andorra ), and the Consumers'
Association (ACU – Associació de Consumidors ).
(b) Judicial, arbitral or administrative tribunals or procedures providing for the review of, or
remedies in relation to, administrative decisions affecting trade in services
Administrative decisions affecting trade in services are subject to the Administrative Code
(Codi de l'Administració ) and the Law on Administrative and Fiscal Jurisdiction ( Llei de la
Jurisdicció Administrativa i Fiscal ), amended by the Transitional Law on Judicial Procedures ( Llei
Transitòria de Procediments Judicials ).  These laws define the administrative procedure, and identify
the competent courts and the legal procedures to be followed for review of administrative decisions.
There is in fact no special procedure relating to trade in services;  the review of administrative
decisions is subject to the general rules on trade.
The Law establishing the Chamber of Commerce, Industry and Services provides for the
creation, administration and management of arbitration bodies and services to resolve trade andindustrial disputes.  To date, this has not been put into effect.
Decisions taken by the Administration may thus be reviewed by the administrative
jurisdiction.  Before utilizing legal means, the persons concerned must make an administrative appeal:WT/ACC/AND/3
Page 49
- Either through an application for review ( recurs de reposició ), to the Government if
the latter has taken the decision;
- or an appeal to a higher body ( recurs d'alçada ), submitted to the Government, if the
decision has been taken by the local authorities (Comuns) or another general
administrative body.
Irrespective of the type of appeal, it must be lodged within 13 days following notification of
the decision concerned.  The administration then has two months to respond.  After this period (no
reply from the administration), the appeal is considered to have been disregarded and the person
concerned may have recourse to legal means.
Judicial procedures for the review of administrative decisions commence with a first instance
appeal (first level of jurisdiction) to the administrative section of the Court of First Instance ( Batllia ).
The latter's ruling may be reviewed at the second or last degree (second level of jurisdiction) by the
Administrative Chamber of the Supreme Court of Justice ( Sala Administrativa del Tribunal Superior
de Justícia ) upon appeal.  The Supreme Court is the instance of last resort.
(c) Provisions concerning qualification requirements and procedures, technical standards and
licensing and/or registration requirements for the supply of services
As stated, it is necessary to be listed in the relevant register in order to carry out an economic
activity: the Register of Commerce and Industry (companies must also be listed in the Register of
Business Firms), or the Register of Persons Authorized to Practise a Profession.
In addition to these main registers, other registers exist to check the professional
qualifications required for certain professions or to guarantee hygiene and safety in establishments
open to the public.  For example, the Register of Health Professions (Registre de professions
sanitàries ), the General Register of Transporters ( Registre General de Transportistes ), Register of
Sporting Bodies ( Registre d'Entitats Esportives ), Register of Private Teaching Centres ( Registre de
Centres Docents Privats ).
Inclusion in the Register of Commerce or th e Register of Professions does not exempt a
person from the obligation to be listed simultaneously in the register for a particular activity.
(d) Provisions governing the existence and operations of monopolies or exclusive service
suppliers
The only monopolies are those of the State:
- FEDA (Electric Power of Andorra), which produces and imports electric power;- STA (Andorran Telecommunication Service), which provides telecommunication
services in general (supply and import);
- ORTA (Andorran Radio and Television Orga nization), which supplies broadcasting
and television services.
In the case of broadcasting and television services, the Government may grant concessions.
There are no State regulations on exclusive channels of distribution.  The trade policy of the
companies concerned may dictate certain trade practices, for example, exclusive concessionaires or
franchises (practices making it obligatory to obtain supplies from a certain supplier or to follow acertain pricing policy, etc.).WT/ACC/AND/3
Page 50
(e) Provisions relating to safeguard measures as they apply to trade in services
In Andorra, no safeguard measures apply to trade in services.
(f) Provisions relating to international transfers and payments for current transactions of services
There are no provisions in this regard.
(g) Provisions relating to capital transactions affecting the supply of services
There are no provisions on capital transactions.
(h) Provisions governing the procurement by governmental agencies of services
The procurement of services by governmental agencies must respect the principles of
transparency, competition and publication set out in the Administrative Code ( Codi de
l'Administració ).
Services supplied to the Government, with the exception of technical public works projects,
are not obliged to apply the Law on Public Contracts ( Llei de contractació pública ).
(i) Provisions concerning any form of aid, grant, domestic subsidy, tax incentive or promotion
scheme affecting trade in services
There are no promotion measures or incentives for trade in services.  The Law on the
registration fee for economic operators ( Llei de la taxa sobre el Registre de Titulars d'Activitats
Economiques , Article 5.3), however, provides that the professions shall be exempt from this fee for
the first two financial years.
3. Market access and national treatment
The Law on Business Firms applies across the board to the entire services sector.  The
regulations applicable to each services sector may include checks on professional or other
qualifications for the purpose of market access.
(a) Limitations on the number of service suppliers
There are no limitations on the number of service suppliers with the exception of taxis and
solicitors.  The number of banking institutions is also regulated.
- Ordinary interurban taxi services
This sector is regulated by the Government, which issues licences authorizing the operation of
a taxi service.  The Government puts out a tender for the allocation of the licences available.  The
number of licences is fixed by the Government according to demand and market needs.
- Solicitors ( Notaires )
As already mentioned, Article 15 of the Law on Solicitors of 28 November 1996 states that
the Government shall fix the maximum number of so licitors (a minimum of four and a maximum of
one per 10,000 inhabitants).WT/ACC/AND/3
Page 51
- Banking institutions
On 28 April 1993, the Government adopted the Law on Provisional Measures for the
Organization and Regulation of Financial Sector ( Llei de mesures provisionals per l'ordenació i
regulació del sector financer ).  This states that no authorization for the creation of new non-banking
financial institutions will be issued until the legislation regulating the sector has entered into force.
The dichotomy between banking institutions and other financial entities comprising the
financial system has led to liberalization in two stages over a period.  The first stage concerns the
opening of banking institutions and the second the other components of the financial system.
With the enactment of a number of texts regulating the banking institutions sector, the
Government has allowed controlled and gradual opening up by extending the limit for foreign capital
participation and the establishment of new banking institutions.
Participation by foreign capital in banking institutions may amount to 51 per cent of the
registered capital (instead of 33 per cent).  The reason this measure was adopted is not any possible
insufficiency of Andorran capital available but rather the determination not to open up banking solely
the national level.
The creation of new banking institutions will be gradual.As the domestic market is well covered by the existing institutions, it is likely that the new
banks will focus on promoting new lines of activity.  Because of the uncertainties, it is necessary toremain prudent and allow gradual opening up while awaiting the market's reaction to the entry of new
banks.
During the first stage of opening up the banking sector, up to the year 2000, the Government
may authorize the creation of three new banking institutions.  Candidates may receive anauthorization if they meet the economic, commercial and social requirements.  In order to preserve the
integrity of the banking system, the level of criteria is necessarily high.
The aim of opening up the banking sector is mainly to catalyze competence, improve the
quality of the supply of banking services, diversify the sector or the companies and also strengthentheir international image, without however weakening the existing system.
Naturally, excessive competition could have the opposite effect:  prices that are too
competitive and detrimental to quality and/or employment, or the development of undesirable banking
practices.
The Government will take a decision on the second stage of opening up the banking sector
before the end of 2001 when it will have more information on the Andorran banking market's reaction
to opening up.
(b) Limitations on the total value of service transactions or assets
There are no limitations on the total value of service transactions or assets.
(c) Limitations on the total number of service operations or on the total quantity of service output
There are no limitations on the total number of service operations or on the total quantity of
service output.WT/ACC/AND/3
Page 52
(d) Limitations on the total number of natural persons that may be employed in a particular
service sector
The Labour Regulations ( Reglament Laboral ), which have the status of law, govern the
working conditions for Andorran nationals and residents in all sectors and do not contain any
limitation on the number of persons that may be employed.
The Law on Immigration Quotas ( Llei Qualificada de quota d'immigració ), however applies
across the board and may have limitative effects.  In order to control migratory flows, Parliament has
established immigration quotas for the periods defined in the Law.  The latter also defines the number
of residents and work permits available according to country of origin, qualifications and type of
permit.
Other than this Law, which has no sectoral effects, there are no other direct measures limiting
the number of persons employed in the services sector.
(e) Restrictions on, or requirements of specific types of legal entity through which a service may
be supplied
As stated in the general description of the overall structure of the market, services may be
supplied by a natural or legal person.  Any commercial activity requires a permit to open a business.This is listed in the Register of Commerce and Industry, given a registration number and a certificate
is issued.
Apart from this general obligation, the type of legal entity through which a service may be
supplied only concerns two sectors, namely, insurance and banking institutions.
The Law of 11 May 1989 regulating the operations of insurance companies in the Principality
(Llei reguladora de l'actuació de les companyies d'assegurances al Principat ) prescribes that any
legal person operating in the insurance sector either  by writing insurance or as an intermediary must
be in the form of a public limited company (Article 9.1(a) for insurance companies and
Article 11.1(b) for intermediaries).  The practice of insurance intermediary may also be carried out by
natural persons, who are then subject to th e Decree of 29 July 1981 on Business Permits.
This restriction does not apply, however, to foreign insurance companies, which under
Article 10.1(a) of the Law must meet the following requirements:
- Be established in conformity with the provisions in their country of origin;- the branches or insurance operations must be legal in their country of origin;- they must have carried out insurance operations in their country of origin for at least
five years;
- they must set up a permanent office in Andorra;- they must appoint a delegate in Andorra authorized to practice in Andorra and with
the requisite powers;
- they must provide the Government with the banking guarantees specified in the law.
Banking institutions must be set up as public limited companies ( societat anònima de dret
andorrà ) under Andorran law, as provided in Article 1 of the Law of 30 June 1998 regulating the
basic administrative regime of banking institutions ( Llei de regulació del règim administratiu bàsic de
les entitats bancàries ).WT/ACC/AND/3
Page 53
(f) Limitations on the participation of foreign capital
There is a general regulation limiting participation of foreign capital in Andorran business
firms to one third of the registered capital (Law on Business Firms, Article 3.1).  For companies that
are deemed to be of public or social interest, the Government may fix a higher limit on an ad hoc
basis.  The banking sector allows participation of  foreign capital in banking institutions for up to
51 per cent of the capital.
(g) Measures providing for less than the treatmen t accorded to national services or service
suppliers
Two decrees give resident suppliers advantages in very special cases: one concerns the
transport sector and the other special vehicles used in building or public works ( ginys mecànics ).
Transport
As already mentioned in relation to the regulations on the transport services sector, domestic
transport of passengers or goods is restricted to national transporters and goods of an origin other than
the place of registration of the vehicle are not allowed to enter Andorra.  These measures have been
adopted because the same treatment is applied to Andorran transporters by other countries (ban on
multinational or bilateral transport).
Special vehicles
In 1981, Parliament allowed the temporary import of special vehicles to be used for
earthworks inter alia  imported under a leasing contract to carry out particular works, subject to
obtaining a Government authorization.  This may be refused if a vehicle with similar characteristicsand able to carry out this work is available in the Principality.
This measure has been adopted in order to preserve these activities and avoid unfair
competition on the part of foreign companies.  Because such activities require large investment,
domestic enterprises were being threatened by the pr ices offered by foreign companies.  As the latter
were much larger and thus more profitable or because they wished to conquer new markets, they were
offering prices that resident suppliers could not match.
There are no other restrictions on the supply of services.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade in
services (Annex 8A refers)
There are no agreements of this type relating to trade.
2. Economic integration, customs union and free-trade area agreements (Annex 8B refers)
Andorra is party to the Trade Agreement with the European Community (EC-Andorra
Agreement of 28 June 1990).
The EC-Andorra Trade Agreement
In 1990, in Luxembourg, Andorra signed a Trade Agreement with the European Community,
including a customs union agreement covering Chapters 25-97 of the HS, a preferential agreementWT/ACC/AND/3
Page 54
covering Chapters 1-24 of the HS, and common provisions.  The Agreement is for an indefinite period
and replaces the national trade regimes previously in effect by a special regime taking into account theparticular features of the Principality of Andorra due to geographical, historical and socio-economic
factors.
Specific provisions of the Agreement
The EC-Andorra agreement has four Titles and 26 Articles.
Title I establishes and regulates the customs union between the EEC and the Principality of
Andorra for industrial products covered by Chapters 25-97 of the HS (Articles 1-10).  It provides for
the following:
- The abolition of customs duties and charges having equivalent effect, as well as
quantitative restrictions on trade between the two signatories;
- adoption by the Principality of Andorra of  the Community provisions on imports from
third countries into the customs union, and the trade policy measures applied by the
EC to third countries.
Articles 11 and 12 in Title II deal with agricu ltural products in Chapters 1-24 of the HS not
covered by the customs union:
- Article 11 deals with products covered by Chapters 1-24 of the HS imported into the
EC from the Principality of Andorra.  They are exempt from import duties, but only ifthey originate in the Principality of Andorra (Article 11.1).  The conditions and
obligations concerning this preferential or igin are set out in a special appendix that
forms an integral part of the Agreement (Article 11.2);
- Article 12 deals with agricultural products not covered by the customs union and
imported into the Principality of Andorra.  Article 12.1 prohibits Andorra from
applying a more favourable regime to goods from third countries than that applied to
imports of Community goods.  Article 12.2 contains a preferential clause on tobacco
manufactures in Chapters 24.02 and 24.03 of the HS manufactured in the Community
from raw tobacco in free circulation.  When imported into the Principality of Andorra,they enjoy a preferential rate corresponding to 60 per cent of the rate applied for the
same products vis-à-vis  third countries (for further details see point IV.1(b)(i).
Title III (Articles 13-19) sets out the common provisions, in particular:
- Article 13 deals with exemptions for tourists;
- Article 14 contains a non-discrimination clause on domestic tax regarding the
treatment given to the domestic products of one contracting party and similar products
from the other contracting party;
- Article 15 deals with the mutual assistance procedures deemed necessary for the
proper functioning of the Agreement.
Title IV (Articles 20-26) contains the general and final provisions.WT/ACC/AND/3
Page 55
Provisions on the customs union
Article 2 of the Agreement establishes a customs union between the EC and the Principality
of Andorra for the products covered by Chapters 25-97 of the Harmonized Commodity Description
and Coding System.
For trade between the EC and the Principa lity of Andorra in products covered by
Chapters 25-97 of the HS, customs duties and charges having equivalent effect applied on tradebetween the EC and the Principality of Andorra were abolished on 1 January 1991.
Customs duties on imports and charges having equivalent effect for trade between the EC and
the Principality of Andorra have been abolished on the following goods:
- Goods produced in the EC or the Principality of Andorra, including those obtained
wholly or in part from products which come from third countries and are in freecirculation in the EC or in the Principality of Andorra;
- goods which come from third countries and are in free circulation in the EC or the
Principality of Andorra.
For products covered by the customs union, the Principality of Andorra has adopted the
provisions on import formalities applied by the Community to third countries, with effect from
1 January 1991.
16
It has also adopted the laws, regulations and administrative provisions applicable to customs
matters in the European Community (see Decision No. 2/91 of the Joint Committee of 1 July 1991).
Article 9 imposes a reciprocal prohibition on introducing quantitative restrictions on imports
and exports and all measures having equivalent effect in trade between the EC and the Principality of
Andorra from 1 January 1991.
Regime for products not covered by the customs union
Article  11 of the Agreement allows exemption from import duties for products covered by
Chapters 1-24 of the HS which originate in the Principality of Andorra and are imported into the EC.
The Appendix to the Agreement sets out the criter ia for determining the Andorran origin of such
products.
Article 1 of the Appendix gives an exhaustive definition of Andorran origin and states that the
following shall be regarded as products originating in the Principality of Andorra:
- Vegetable products which are harvested in the Principality of Andorra;
- mineral products taken from the ground;
- live animals born and raised in the Principality of Andorra;- products obtained from live animals born and raised in the Principality of Andorra;- products from hunting and fishing in the Principality of Andorra;
                                                     
16 Including inter alia  the common trade policy, see Annex II to the Agreement and the decisions of the
Joint Committee No. 2/96 of 1 July 1996, reaffirmed by Decision No. 1/98 of 20 October 1998.WT/ACC/AND/3
Page 56
- products obtained in the Principality of Andorra by working or processing products
referred to in points (a) to (d), even if other products have been used in theirmanufacture, provided that the products which are not obtained in the Principality of
Andorra play only a subsidiary part in manufacture.
Note 3 in Annex 1 to the Appendix states that: "Products which do not make up more than
10 per cent by quantity of those referred to in Article 1(a) to (e) of the Appendix be regarded as'playing a subsidiary part' in manufacture."
Common provisions
- Exemptions for tourists
Exemptions from import duties, turnover tax and excise duties levied on imports contained in
the personal luggage of travellers coming from the Principality of Andorra are those currentlyapplicable in the EC in respect of third countries.
According to Article 13.3 of the Agreement,  however, the exemption for Andorra has been
fixed at three times the value granted by the EC to travellers from third countries.
- Prohibition on any domestic tax measure leading to discrimination between the products of
one contracting party and similar products from the other contracting party.
Article 14 prohibits the Principality of Andorra and the EC from introducing any domestic tax
measure or practice leading directly or indirect ly to discrimination between the products of one
contracting party and similar products from the other contracting party.
- Mutual assistance between the administrative authorities of each contacting party.
To complement the creation of the Joint Committee responsible for administering the
Agreement and ensuring that it is properly implemented, Article 15 of the Agreement states that the
administrative authorities of each contracting party responsible for implementing the provisions of the
Agreement shall assist each other so as to ensure compliance with the provisions (Article 15 has been
implemented by the Decisions of the Joint Committee No. 6/91 of 12 July 1991 (OJ L 250/34 7.9.91)
and No. 1/95 of 6 November 1995).
- Settlement of disputes (Articles 10 and 18 of the Agreement)
Disputes concerning the interpretation of the Agreement and disparities arising from the other
party's application in respect of imports from third countries of customs duties, quantitative
restrictions or any measures having equivalent effect, or of any other measure of commercial policy
that threatens to deflect trade or to cause economic difficulties, are put before the Joint Committee atthe request of a contracting party.  If the Joint Committee does not succeed in settling the dispute at its
next meeting, each party may notify the other of the designation of an arbitrator; the other party shall
then be required to designate a second arbitrator within two months.  The Joint Committee shall
designate a third arbitrator.  The arbitrators' decisions shall be taken by a majority vote.
General and final provisions
Article 21 gives either contracting party the possibility of denouncing the Agreement by
notifying the other contracting party in writing.  The Agreement then ceases to have effect six months
after the date of such notification.WT/ACC/AND/3
Page 57
Article 22 establishes the territorial scope of the Agreement, on the one hand the territories in
which the Treaty establishing the European Community is applied and, on the other, the territory ofthe Principality of Andorra.
17
3. Labour markets integration agreements
There are no labour markets integration agreements in Andorra.
4. Multilateral economic cooperation, me mbership in the multilateral economic
organizations, trade-related programmes of other multilateral organizations
The 1993 Constitution was approved by referendum and it reaffirms Andorra's status as a
democratic and constitutional State.  It defines the international responsibilities for representing
Andorra abroad, outlines international policy, bilateral relations and relations with international
organizations.
Andorra commenced its integration into the international community in July 1993 when it
became the 184th member of the United Nations.  There has been peace in Andorra since the
13th century and the country has now become active on the international scene.  It utilizes its status as
a small mediatory State to widen the scope of discussions at the General Assembly and in a large
number of international conferences.  Like other small States, Andorra uses discretion in its efforts toparticipate in preventive diplomacy.
Andorra is a member of the United Nations Organization, the Council of Europe, the OSCE,
UNESCO, WHO, ITU, EUTELSAT, WIPO, the International Red Cross, the International Office of
Epizootic Diseases, and the Customs Cooperation Council.
Andorra's accession to the WCO underlines its determination to improve the effectiveness of
its customs administration, to utilize new instrume nts in order to simplify the system and facilitate
gradual adaptation to international legislation and standards.
For several years, Andorra has maintained ongoing contacts with the International Monetary
Fund.
The Principality of Andorra has also ratified many international treaties, thus underlining its
concern for harmonization with international rules.  It is adapting European economic, health andenvironmental directives although it remains open to other major forums for progress and culture in
America, Africa, Asia and Oceania.
Over the past five years, bilateral diplomatic relations have been established with
73 countries, 48 of which have Ambassadors accredited to Andorra.  The members of the EU in
particular have accredited Ambassadors.  The Kingdom of Spain and the French Republic have
Ambassadors resident in Andorra.
Andorra's diplomatic representation consists of missions and Ambassadors abroad and,
because of its limited possibilities, Ambassadors are accredited to several countries.  It has established
five diplomatic missions in New York, Paris, Ma drid, Brussels and Strasbourg, where Ambassadors
represent Andorra at the United Nations, in the United States, Canada, France, UNESCO, Spain, theEU, Belgium, Luxembourg, Netherlands and the C ouncil of Europe respectively.  Non-resident
Ambassadors are accredited to Portugal, the Holy See and the OSCE.
                                                     
17 Pursuant to Article 24.3, the entry into force of the Agreement was delayed until 1 July 1991.WT/ACC/AND/3
Page 58
ANNEXES
Although the Principality of Andorra possesses a set of useful and good quality statistics for
certain sectors, they have only recently begun to be integrated into a national accounting system.Consequently, some statistical indicators in the Annex can only be estimated pending fuller
development of the country's statistical system.
The following information can be consulted at the Accessions Division (Office 1126):- Customs Code of the Principality of Andorra;
- Legislation on Andorra's financial system;
- EC-Andorra Customs Union Agreement;- Trademark Law;- Law on Business Firms;-I M I  L a w ;
- Decree of 11 July 1977 on the Professions, "Practice of the Professions in the
Principality of Andorra";
- Constitution of the Principality of Andorra;
- Fiscality in the Principality of Andorra;
- Foreign trade statistics:  imports-exports 1997;- Foreign trade statistics:  imports-exports 1998.WT/ACC/AND/3
Page 59
ANNEX 1
Statistics and Publications
1. Foreign trade statistics for goods and services;  responsible agencies
Foreign trade statistics:  see blue book "Foreign Trade Statistics Imports-Exports, 1997"
Responsible agency:  General Customs Directorate, Ministry of Finance
2. Publications related to statistics
- Foreign trade statistics 1993 to 1997
- Government and financial sector statistics 1988 to 1993
- Monthly economic bulletin- Travellers' duty-free regime
- Central government budget 1988 to 1998
- Population statistics 1977 to 1997
- School and university statistics
- Analysis of vital statistics in Andorra 1991-1992- National health survey 1990-1991
- Statistics on trade, industry and transport 1993 to 1996
- Estimated number of visitors and market survey, summer 1994
3. Statistical data
(a) Main economic indicators 1997
(i) GDP
In the case of the financial and agricultural sectors and the tobacco industry, GDP estimates
are based on direct data or data obtained from balance sheets or operating accounts.  For the
remaining sectors, the estimate is based on payrolls according to the CASS sectoral statistics andgross value added/wage ratios for Catalonia.
Estimated Gross Value Added (GVA) 1997 (pesetas)
Sectors No. of wage earners Payrolls Gross value added
Agriculture 696 1,439,934,744 4,957,530,241
Industry 756 1,701,272,160 19,724,939,674
Construction 4,699 10,961,274,192 28,832,184,701
Services 22,937 50,177,728,404 128,987,546,893
Total 29,088 64,280,209,500 182,502,201,509
Taxes/importation 27,050,113,283
GDP nominal APM
(Total GVA + taxes/importation) 209,552,314,792WT/ACC/AND/3
Page 60
(ii) GDP per capita (Ptas)
GDP nominal APM: Ptas 209,552,314,792
Registered population 65,306
Per capita GVA (Ptas) Ptas 3,208,776
Average exchange rate US$/Pta Ptas 146.41/US$1
Total GDP (in US$) US$1,431,270,506.05
Per capita GDP (US$) US$21,916
(iii) Production and consumption of basic goods
With regard to the production of livestock products, it should be noted that for 1997 bovine
animals (mostly for the production of meat) numbered a total of 1,199 head, while there were
996 equine animals, 2,515 head of sheep and 768 head of goats.  The number of cattle has remained
stable over the last ten years, while the number of equine animals and goats has increased two-fold,
and the number of sheep has declined by half over the last ten years.
There was also a noteworthy increase in tobacco production, which grew from 318,000 kg. in
1930 to more than 1 million kg. in 1997.  Most of this output is used by the local tobacco industry.
Potato production, which was previously substantial, has dropped from 616 tonnes in 1968 to
less than half that level today.
Nearly all the other basic products consumed in Andorra are imported.  (See import figures.)WT/ACC/AND/3
Page 61(iv) Budget:  budgetary trends for the period 1982-1998
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Indirect taxes 5,528 6,608 7,952 8,661 9,505 11,376 12,177 13,161 13,472 15,097 17,469 19,498 20,850 23,500
Other taxes and charges 370 359 450 2,252 727 9,257 611 2,224 3,159 2,440 1,355 2,948 2,780 2,360
Pecuniary revenue 114 257 446 296 631 40 405 787 729 1,298 2,444 2,998 3,714 9,723
Total revenue 6,012 7,224 8,848 11,209 10,863 20,673 13,193 16,172 17,360 18,835 21,268 25,444 27,344 35,583
Wages 898 1,266 1,375 1,642 2,026 2,505 3,031 3,354 3,584 4,364 4,974 5,401 6,045 6,317
Goods and services 1,050 1,136 1,498 1,992 2,401 2,811 2,902 3,203 3,497 3,445 3,037 3,676 3,904 4,045
Current transactions 802 974 1,115 1,468 1,708 2,473 2,465 3,596 3,286 3,664 3,889 4,536 4,526 4,596
Bank interest 213 178 161 268 380 1,031 1,228 1,489 1,887 1,770 556 516 1,155 908
Investment 2,870 4,077 6,136 10,013 10,704 11,408 6,326 4,742 5,903 5,369 5,605 6,680 7,390 13,082
Capital transfers 350 303 357 521 466 540 0 3,842 4,021 4,228 4,599 4,932 5,908 7,202
Total expenditure 6,183 7,934 10,642 15,904 17,685 20,768 15,952 20,226 22,178 22,840 22,660 25,741 28,928 36,150
Surplus/deficit (-) -171 -710 -1,794 -4,695 -6,822 -95 -2,759 -4,054 -4,818 -4,005 -1,392 -297 -1,584 -567
Figures:  millions of pesetasWT/ACC/AND/3
Page 62(v) Annual changes in prices, 1997
First quarter Second quarter Third quarter Fourth quarter
Code Description Weighting Base index
4th quarter 1997Variation (%) Base index
4th quarter 1997Variation (%) Base index
4th quarter 1997Variation (%) Base index
4th quarter 1997Variation (%)
1 Food, beverages and tobacco 2,548 101.38 1.38 101.88 0.50 102.91 1.01 103.76 0.82
2 Clothing 918 96.60 -3.40 97.44 0.88 92.28 -5.30 98.39 6.62
3 Housing, water, gas, electricity
and other fuels1,938 100.30 0.30 100.25 -0.05 100.57 0.32 100.57 0.00
4 Furniture, household goods and
services647 100.03 0.03 100.60 0.57 100.48 -0.12 101.59 1.11
5 Health (non-subsidized
expenditure)253 100.07 0.07 100.22 0.16 101.22 1.00 101.03 -0.19
6 Transport 1,769 101.47 1.47 100.93 -0.54 100.72 -0.21 100.85 0.13
7 Recreation, entertainment and
culture560 100.91 0.91 101.78 0.87 103.78 1.96 100.78 -2.89
8 Education 139 99.84 -0.16 98.73 -1.12 99.22 0.50 100.66 1.45
9 Hotels, cafes and restaurants 612 100.63 0.63 102.47 1.82 103.18 0.70 103.44 0.25
10 Miscellaneous goods and services 616 100.58 0.58 101.98 1.40 102.33 0.33 102.50 0.17
Total 10,000 100.48 0.48 100.86 0.37 100.87 0.02 101.62 0.74
Special groups First quarter Second quarter Third quarter Fourth quarter
Description Index
4th quarter 1997Variation (%) Index
4th quarter 1997Variation (%) Index
4th quarter 1997Variation (%) Index
4th quarter 1997Variation (%)
Food 100.90 0.90 101.28 0.38 102.29 1.00 102.77 0.47
General index excluding tobacco 100.34 0.34 100.65 0.31 100.60 0.00 101.31 0.66
Energy 99.50 -0.50 98.14 -1.37 97.64 -0.51 97.21 -0.44
Services (excluding residential rents) 101.09 1.09 102.18 1.08 103.45 1.24 103.38 -0.07WT/ACC/AND/3
Page 63
(vi) Employment in different sectors
Number of Wage Earners by Sector of Activity
(Persons) 1995 1996 1997 1998*
1 Primary 174 192 199 197
2 Primary industries 492 495 497 500
3 Construction 2,459 2,448 2,572 2,816
4 Construction services 2,114 2,150 2,127 2,187
5 Processing industries 751 738 756 724
6 Garages 390 403 409 439
7 Food stores 1,252 1,270 1,260 1,283
8 Tourist establishments 5,293 5,348 5,570 5,871
9 Services 3,020 3,173 3,338 3,525
10 Hotel trade 3,957 4,097 4,210 4,571
11 Tourist services 806 882 917 1,087
12 Financial institutions and
insurance 1,263 1,254 1,276 1,327
13 Independent professions 522 547 620 667
14 Administration 3,274 3,452 3,636 3,829
15 Other 1,547 1,622 1,701 1,753
Total 27,314 28,071 29,088 30,779
* The figures for 1998 do not include data for the month of December.
Source:  Caixa Andorrana de Seguretat Social .
Average Wages by Sector of Activity
(Pesetas) 1995 1996 1997 1998*
1 Primary 114,088 118,283 124,624 133,821
2 Primary industries 172,704 180,452 191,358 198,590
3 Construction 182,168 187,641 194,306 201,914
4 Construction services 180,466 186,432 194,492 200,291
5 Processing industries 165,622 182,164 187,530 202,459
6 Garages 165,390 177,272 180,006 182,521
7 Food stores 157,321 161,308 167,160 172,785
8 Tourist establishments 154,544 161,601 165,836 170,721
9 Services 162,660 168,738 172,699 179,480
10 Hotel trade 130,889 137,910 141,411 145,607
11 Tourist services 166,038 175,969 180,752 189,856
12 Financial institutions
and insurance 317,831 347,574 362,293 380,176
13 Independent professions 164,449 168,043 177,944 179,708
14 Administration 217,201 229,125 238,366 242,917
15 Other 104,979 114,333 115,613 120,304
Total 169,946 178,369 184,153 190,181
*  The figures for 1998 do not include data for the month of December.
Source:  Caixa Andorrana de Seguretat Social .WT/ACC/AND/3
Page 64
(vii) Levels of employment
Andorra has no organization to register job seekers.  Labour movements do not provide an
adequate estimate of the actual situation.
However, the Immigration Department of the Ministry of the Interior plans to set up a labour
exchange.  Andorra will then be able to calculate the level of unemployment more accurately.
(viii) Currency resources
In view of the fact that Andorra has no legal currency of its own, the total own funds of the
INAF, C 18 million, can be considered to constitute its currency resources.  INAF's Central Bank role
only concerns control of the financial system.  It does not conduct monetary policy.
(ix) Balance of payments
The Government of Andorra does not have adequate data with which to compile the balance
of payments of the Principality.  The only reliable balance-of-payments data are those relating to
imports of goods.
(x) Trade balance 1995-1998
1995 1996 1997 1998
Exports 6,095 5,881 7,041 8,450
Imports 131,602 135,460 157,054 161,668
Trade balance -125,507 -129,579 -150,013 -153,218
(xi) Import volumes and value at 1985 prices, years 1976-1998
Year (1985 pesetas) (Current pesetas)
1976 45,195 12,730
1977 54,316 19,056
1978 47,990 20,156
1979 62,110 30,175
1980 67,910 38,143
1981 66,176 42,573
1982 55,824 41,077
1983 58,027 47,921
1984 59,001 54,232
1985 63,234 63,234
1986 68,358 74,305
1987 75,539 86,492
1988 78,338 94,005
1989 82,128 105,206
1990 87,802 120,025
1991 82,652 119,680
1992 75,920 116,385
1993 74,082 118,828
1994 72,835 122,290
1995 74,019 129,755
1996 73,817 133,608
1997 84,151 157,051
1998 84,783 161,087WT/ACC/AND/3
Page 65
(b) Foreign trade statistics (1995-1998)
(i) Export statistics
Chapter Description 1995 1996 1997 1998
01 Live animals 72 66 50 50
0 2 M e a t 0000
03 Fish, crustaceans and molluscs 0 2 0 0
04 Milk, dairy produce, eggs, honey 11 0 0 0
05 Other products of animal origin 0 0 0 0
06 Live plants, floriculture 0 0 0 0
07 Edible vegetables, plants and tubers 1 0 0 0
08 Edible fruit and nuts 0 0 0 0
09 Coffee, tea, spices 2 0 0 0
10 Cereals 0 0 0 0
11 Flour products 0 0 0 0
12 Seeds and fruit 3 0 0 0
13 Gums, resins and juices 0 0 0 0
14 Plaiting materials 0 0 0 0
15 Animal or vegetable oils 0 0 1 1
16 Preparations of meat, of fish or of crustaceans 0 0 0 0
17 Sugar and sugar confectionery 26 22 24 22
18 Cocoa and cocoa preparations 0 1 0 0
19 Preparations of cereals and pastry cooks' products 8 2 3 0
20 Preparations of vegetables or fruit 1 0 1 0
21 Miscellaneous edible preparations 0 0 0 0
22 Beverages, spirits 267 252 430 418
23 Residues from the food industries, animal fodder 0 0 0 0
24 Tobacco 7 31 156 387
25 Salt, sulphur, earths and stone, chalk, cement 64 71 61 66
2 6 O r e s 0000
27 Mineral fuels and oils 10 0 0 0
28 Inorganic chemicals 3 2 2 0
29 Organic chemicals 0 0 0 0
30 Pharmaceutical products 1 1 1 16
31 Fertilizers 0 0 0 0
32 Paints, varnishes 15 14 23 23
33 Perfumery or cosmetic products 189 193 196 336
34 Soap, artificial waxes, candles 4 3 2 5
35 Albuminoidal substances 0 0 0 0
36 Powders and explosives 0 0 0 1
37 Photographic goods 21 33 70 20
38 Miscellaneous chemical products 4 7 2 6
39 Plastics 121 165 171 177
40 Rubber 19 15 9 12
41 Unprocessed fur skins and leather 20 17 19 10
42 Articles of leather 439 227 341 1,018
43 Fur skins 0 0 0 0
44 Wood, charcoal and articles of wood 24 40 39 61
4 5 C o r k 0000
46 Manufactures of straw 0 0 0 0
47 Pulp of wood, waste of paper or paperboard 72 35 21 35
48 Paper and paperboard 12 28 49 11
49 Printed books, newspapers, products of the printing
industry 577 613 743 1,088WT/ACC/AND/3
Page 66
Chapter Description 1995 1996 1997 1998
5 0 S i l k 0111
51 Wool 3 0 0 1
5 2 C o t t o n 1 0823
53 Other vegetable textile fibres 0 0 0 0
54 Manmade filaments 11 14 14 4
55 Manmade fibres 6 2 0 0
56 Wadding 0 0 12 33
57 Carpets 1 0 0 4
58 Special woven fabrics, tapestries 0 0 50 72
59 Textile articles of a kind suitable for industrial use 0 1 15 40
60 Knitted articles 0 0 1 0
61 Knitted clothing 83 52 52 147
62 Clothing, not knitted 733 726 580 390
63 Other made-up textile articles 5 5 2 1
64 Footwear 34 13 13 36
65 Headgear 1 6 8 9
66 Umbrellas, sticks 1 7 9 4
67 Feathers, artificial flowers 1 0 3 0
68 Articles of stone, chalk, cement 11 8 10 3
69 Ceramic products 6 14 8 9
70 Glassware 3 7 3 10
71 Pearls, precious stones and metals 98 118 90 63
72 Iron and steel 51 36 40 44
73 Articles of iron or steel 23 38 19 41
74 Copper 8 7 5 3
75 Nickel 0 0 0 0
76 Aluminium 23 21 15 16
7 8 L e a d 3201
79 Zinc 0 0 0 0
80 Tin 0 0 0 0
81 Other metals 0 0 0 0
82 Tools and implements 13 7 8 13
83 Miscellaneous articles of base metal 13 21 18 21
84 Boilers, machinery and appliances 311 375 370 322
85 Electrical machinery 531 779 1,397 1,027
86 Railway locomotives and rolling stock 0 0 0 0
87 Motor vehicles and bicycles 1,584 1,190 947 1,143
88 Aircraft and spacecraft 0 1 1 40
89 Ships, boats and floating structures 24 10 6 31
90 Optical, photographic, medical or surgical instruments 50 49 73 433
91 Clocks and watches 59 38 66 68
92 Musical instruments 1 1 3 6
93 Arms and ammunition 4 4 3 58
94 Furniture and lighting fittings 257 276 313 327
95 Toys, sports requisites 104 111 459 254
96 Miscellaneous articles 34 5 1 5
97 Works of art, collectors'  pieces and antiques 2 88 10 4
Total exports 6,095 5,881 7,041 8,450
Figures in Ptas million.
Source:  Customs Service.WT/ACC/AND/3
Page 67
(ii) Import statistics, breakdown
Chapter Description 1995 1996 1997 1998
01 Live animals 244 210 199 158
02 Meat 2,607 2,699 2,914 3,034
03 Fish, crustaceans and molluscs 1,144 1,226 1,375 1,482
04 Milk, dairy produce, eggs, honey 5,762 5,589 5,339 4,991
05 Other products of animal origin 12 15 16 14
06 Live plants, floriculture 154 153 181 210
07 Edible vegetables, plants and tubers 687 605 620 763
08 Edible fruit and nuts 753 725 786 799
09 Coffee, tea, spices 430 344 444 423
10 Cereals 65 70 68 68
11 Flour products 121 137 130 121
12 Seeds and fruit 71 61 58 68
13 Gums, resins and juices 3 2 2 6
14 Plaiting materials 0 1 1 1
15 Animal or vegetable oils 2,402 1,474 1,140 918
16 Preparations of meat, of fish or of
crustaceans 1,373 1,464 1,626 1,638
17 Sugar and sugar confectionery 1,479 1,453 1,488 1,363
18 Cocoa and cocoa preparations 977 927 1,018 998
19 Preparations of cereals and pastry cooks'
products 1,362 1,402 1,518 1,665
20 Preparations of vegetables or fruit 1,027 1,059 1,071 1,165
21 Miscellaneous edible preparations 1,213 1,241 1,070 1,225
22 Beverages, spirits 7,415 7,569 8,463 9,367
23 Residues from the food industries, animal
fodder 142 126 137 143
24 Tobacco 9,488 10,772 17,822 6,364
25 Salt, sulphur, earths and stone, chalk,
cement 951 1,140 1,240 1,287
26 Ores 2 0 0 0
27 Mineral fuels and oils 4,661 4,979 5,443 5,689
28 Inorganic chemicals 67 74 88 99
29 Organic chemicals 65 65 72 70
30 Pharmaceutical products 1,677 1,826 1,842 2,092
31 Fertilizers 59 54 65 57
32 Paints, varnishes 363 381 438 496
33 Perfumery or cosmetic products 8,173 8,508 9,690 11,205
34 Soap, artificial waxes, candles 720 734 770 848
35 Albuminoidal substances 52 57 60 61
36 Powders and explosives 54 59 42 44
37 Photographic goods 236 230 251 225
38 Miscellaneous chemical products 310 337 362 471
39 Plastics 1,533 1,462 1,768 1,828
40 Rubber 1,525 1,556 1,474 1,456
41 Unprocessed fur skins and leather 18 20 13 22
42 Articles of leather 1,999 2,076 2,420 3,249
43 Fur skins 78 99 98 122
44 Wood, charcoal and articles of wood 1,318 1,269 1,631 1,621
45 Cork 4 3 6 3WT/ACC/AND/3
Page 68
Chapter Description 1995 1996 1997 1998
46 Manufactures of straw 26 26 31 39
47 Pulp of wood, waste of paper or paperboard 0 0 0 0
48 Paper and paperboard 2,289 2,211 2,348 2,107
49 Printed books, newspapers, products of the
printing industry 1,738 2,055 1,726 1,114
50 Silk 6 19 10 10
51 Wool 49 17 11 10
52 Cotton 142 305 291 200
53 Other vegetable textile fibres 5 4 2 0
54 Manmade filaments 38 40 66 93
55 Manmade fibres 248 235 253 165
56 Wadding 210 184 211 126
57 Carpets 125 102 161 166
58 Special woven fabrics, tapestries 26 25 45 56
59 Textile articles of a kind suitable for
industrial use 18 34 18 20
60 Knitted articles 17 27 18 22
61 Knitted clothing 3,083 3,580 4,191 4,619
62 Clothing, not knitted 5,242 5,133 5,884 6,449
63 Other made-up textile articles 617 655 7,047 751
64 Footwear 2,876 3,198 3,656 3,659
65 Headgear 421 468 605 703
66 Umbrellas, sticks 218 238 298 191
67 Feathers, artificial flowers 26 42 43 22
68 Articles of stone, chalk, cement 1,235 1,058 1,448 1,360
69 Ceramic products 1,012 1,028 1,092 1,262
70 Glassware 709 759 766 713
71 Pearls, precious stones and metals 2,963 2,756 3,740 5,016
72 Iron and steel 484 569 697 760
73 Articles of iron or steel 1,895 1,892 2,116 2,465
74 Copper 77 90 92 103
75 Nickel 0 0 0 56
76 Aluminium 748 756 715 687
78 Lead 2 4 1 1
79 Zinc 15 12 17 15
80 Tin 9 10 11 13
81 Other metals 0 0 1 2
82 Tools and implements 648 686 718 822
83 Miscellaneous articles of base metal 428 430 466 545
84 Boilers, machinery and appliances 5,159 5,875 6,926 9,621
85 Electrical machinery 13,358 13,202 15,057 17,466
86 Railway locomotives and rolling stock 6 1 2 0
87 Motor vehicles and bicycles 10,220 10,166 11,848 14,220
88 Aircraft and spacecraft 70 81 81 116
89 Ships, boats and floating structures 64 35 140 319
90 Optical, photographic, medical or surgical
instruments 3,362 3,674 4,124 4,957
91 Clocks and watches 2,301 2,418 2,842 3,565
92 Musical instruments 178 189 156 195
93 Arms and ammunition 191 192 148 153
94 Furniture and lighting fittings 3,029 3,282 3,742 4,321
95 Toys, sports requisites 2,608 2,837 3,603 3,681WT/ACC/AND/3
Page 69
Chapter Description 1995 1996 1997 1998
96 Miscellaneous articles 534 551 634 684
97 Works of art, collectors' pieces and antiques 81 56 40 99
Total exports 131,602 135,460 157,054 161,668
Figures in Ptas million.
Source:  Customs Service.WT/ACC/AND/3
Page 70(iii) Imports by country of origin
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Spain 28,312 33,988 39,014 41,099 41,328 44,603 48,532 51,956 53,392 62,420 68,251
France 35,683 38,149 44,012 44,266 40,832 42,153 40,169 40,922 41,771 45,890 49,736
Germany 6,192 7,375 8,448 7,325 6,523 5,638 6,154 6,319 5,900 7,169 7,104
United States 2,139 2,964 3,705 4,643 3,061 3,686 4,797 5,459 5,261 7,671 3,641
United Kingdom 2,611 2,783 3,457 2,910 2,791 3,277 3,662 4,135 4,844 8,978 4,602
Italy 3,553 3,584 3,806 3,606 4,135 3,908 4,440 4,774 5,038 4,897 6,023
Japan 5,755 6,371 7,435 7,439 7,853 5,645 5,004 4,454 4,454 4,191 5,203
Switzerland 1,190 1,496 1,840 1,417 1,499 1,388 1,834 2,201 2,394 3,066 3,070
China 306 447 486 513 1,046 1,170 1,521 1,665 1,573 1,749 1,848
Other 8,268 8,049 7,820 6,456 7,316 7,361 8,542 9,710 8,993 11,072 11,947
Total 94,009 105,206 120,023 119,674 116,384 118,829 124,655 131,595 133,620 157,103 161,425
(Percentage) 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Spain 30.1 32.3 32.5 34.3 35.5 37.5 38.9 39.5 40.0 39.7 42.3
France 38.0 36.3 36.7 37.0 35.1 35.5 32.2 31.1 31.3 29.2 30.8
Germany 6.6 7.0 7.0 6.1 5.6 4.7 4.9 4.8 4.4 4.6 4.4
United States 2.3 2.8 3.1 3.9 2.6 3.1 3.8 4.1 3.9 4.9 2.3
United Kingdom 2.8 2.6 2.9 2.4 2.4 2.8 2.9 3.1 3.6 5.7 2.9
Italy 3.8 3.4 3.2 3.0 3.6 3.3 3.6 3.6 3.8 3.1 3.7
Japan 6.1 6.1 6.2 6.2 6.7 4.8 4.0 3.4 3.3 2.7 3.2
Switzerland 1.3 1.4 1.5 1.2 1.3 1.2 1.5 1.7 1.8 2.0 1.9
China 0.3 0.4 0.4 0.4 0.9 1.0 1.2 1.3 1.2 1.1 1.1
Other 8.8 7.7 6.5 5.4 6.3 6.2 6.9 7.4 6.7 7.0 7.4
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0WT/ACC/AND/3
Page 71(iv) Imports from main suppliers, preferably at a tariff line level
1996 1997 1998
Country Chapter Description % of total Chapter Description % of total Chapter Description % of
total
Spain 85 Electrical machinery 3.18 85 Electrical machinery 3.56 85
87 Motor vehicles, bicycles 2.42 87 Motor vehicles, bicycles 2.24 87
22 Beverages, spirits 2.29 22 Beverages, spirits 2.06 22
94 Furniture and lighting fittings 1.75 84 Boilers, machinery and
appliances1.89 84
04 Milk, dairy produce, eggs,
honey1.71 94 Furniture and lighting fittings 1.74 94
84 Boilers, machinery and
appliances1.63 33 Perfumery or cosmetic products 1.65 33
02 Meat 1.48 04 Milk, dairy produce, eggs,
honey1.49 04
33 Perfumery or cosmetic products 1.48 02 Meat 1.38 02
49 Printed books, newspapers,
products of the printing
industry1.44 48 Paper and paperboard 1.18 48
15 Animal or vegetable oils 1.05 24 Tobacco 1.17 24
48 Paper and paperboard 1.05 71 Pearls, precious stones and
metals1.06 71
Other chapters 21.05 Other chapters 20.79
Total imports 40.54 Total imports 40.22 Total imports 42.21
France 33 Perfumery or cosmetic products 4.66 33 Perfumery or cosmetic products 4.40 33
27 Mineral fuels and oils 2.78 27 Mineral fuels and oils 2.72 27
85 Electrical machinery 2.22 85 Electrical machinery 2.22 85
62 Clothing, not knitted 1.96 87 Motor vehicles, bicycles 2.13 87
84 Boilers, machinery and
appliances1.76 62 Clothing, not knitted 1.84 62
87 Motor vehicles, bicycles 1.70 84 Boilers, machinery and
appliances1.67 84
04 Milk, dairy produce, eggs,
honey1.70 22 Beverages, spirits 1.46 22
22 Beverages, spirits 1.52 04 Milk and dairy produce, eggs,
honey1.42 04
61 Knitted clothing 1.05 61 Knitted clothing 1.14 61
Other chapters 11.43 Other chapters 10.19
Total imports 30.80 Total imports 29.19 Total imports 30.79WT/ACC/AND/3
Page 721996 1997 1998
Country Chapter Description % of total Chapter Description % of total Chapter Description % of
total
Germany 87 Motor vehicles, bicycles 1.58 87 Motor vehicles, bicycles 1.38 87
24 Tobacco 0.93 24 Tobacco 1.34 24
Other chapters 1.81 Other chapters 1.84
Total imports 4.32 Total imports 4.56 Total imports 4.40
UnitedStates24 Tobacco 2.87 24 Tobacco 3.55 24
Other chapters 1.13 Other chapters 1.33
Total imports 4.00 Total imports 4.88 Total imports 2.35
United
Kingdom24 Tobacco 1.59 24 Tobacco 3.23 24
22 Beverages, spirits 1.24 22 Beverages, spirits, 1.35 22
Other chapters 1.09 Other chapters 1.11
Total imports 3.91 Total imports 5.70 Total imports 2.85
Italy 61 Knitted clothing 0.47 62 Clothing, not knitted 0.49 62
Other chapters 2.80 Other chapters 2.63
Total imports 3.28 Total imports 3.12 Total imports 3.74
Japan 85 Electrical machinery 1.42 85 Electrical machinery 1.19 85
Other chapters 1.43 Other chapters 1.48
Total imports 2.85 Total imports 2.67 Total imports 3.20
Switzerland 91 Clocks and watches 0.83 91 Clocks and watches 0.93 91
Other chapters 1.09 Other chapters 0.99
Total imports 1.91 Total imports 1.92 Total imports 1.90
Netherlands 04 Milk, dairy produce, eggs,
honey0.64 24 Tobacco 0.52 24
Other chapters 0.81 Other chapters 0.97
Total imports 1.44 Total imports 1.49 Total imports 1.32
China 85 Electrical machinery 0.46 85 Electrical machinery 0.31 85
Other chapters 0.73 Other chapters 0.80
Total imports 1.19 Total imports 1.11 Total imports 1.14WT/ACC/AND/3
Page 73(v) Trade by geographic areas (main trade partners, exports by Chapter)
1996 1997 1998
Country Chapter Description % of total Chapter Description % of total Chapter Description % of
total
Spain 87 Motor vehicles, bicycles 10.85 87 Motor vehicles, bicycles 9.76
85 Electrical machinery 6.31 85 Electrical machinery 6.08
49 Printed books, newspapers,
products of the printing
industry4.76 22 Beverages, spirits 5.27
22 Beverages, spirits 4.15 49 Printed books, newspapers,
products of the printing industry4.58
94 Furniture and lighting fittings 3.44 94 Furniture and lighting fittings 3.20
62 Clothing, not knitted 3.20 84 Boilers, machinery and
appliances2.21
84 Boilers, machinery and
appliances2.62 33 Perfumery or cosmetic products 1.98
33 Perfumery or cosmetic products 2.17 02 Tobacco 1.64
95 Toys, sports requisites 1.21 48 Other chapters 12.76
25 Salt, sulphur, earth and stone,
chalk1.18 24
01 Live animals 1.12 71
Other chapters 8.91
Total exports 49.93 Total exports 47.50 Total exports 51.53
France 62 Clothing, not knitted 9.11 62 Clothing, not knitted 7.34
87 Motor vehicles, bicycles 8. 91 85 Electrical machinery 7.15
49 Printed books, newspapers,
products of the printingindustry5.64 49 Printed books, newspapers,
products of the printing industry5.95
42 Articles of leather 3.70 95 Toys, sports requisites 5.02
85 Electrical machinery 3.22 42 Articles of leather 4.68
39 Plastics 2.63 87 Motor vehicles, bicycles 3.24
84 Boilers, machinery and
appliances1.56 39 Plastics 2.28WT/ACC/AND/3
Page 741996 1997 1998
Country Chapter Description % of total Chapter Description % of total Chapter Description % of
total
33 Perfumery or cosmetic products 1.10 84 Boilers, machinery and
appliances1.35
Other chapters 3.57 94 Furniture and lighting fittings 1.05
Other chapters 3.53
Total exports 39.43 Total exports 41.58 Total exports 29.67
Portugal 97 Works of art, collectors' pieces 1.42
Other chapters 0.93
Total exports 2.35 Total expo rts 0.53 Total exports 0.22
Belgium 85 Electrical machinery 1.97 85 Electrical machinery 3.36
Other chapters 0.19 Other chapters 0.02
Total exports 2.17 Total expo rts 3.39 Total exports 2.23
Germany 84 Boilers, machinery and
appliances0.86 85 Electrical machinery 0.41
Other chapters 0.45 Other chapters 0.57
Total exports 1.32 Total expo rts 0.98 Total exports 0.74
Switzerland 71 Pearls, precious stones and
metals0.90
Other chapters 0.39
Total exports 1.29 Total expo rts 0.56 Total exports 1.65
Netherlands 85 Electrical machinery 1.90
Other chapters 0.67
Total exports 0.83 Total expo rts 2.57 Total exports 2.83
Japan Total exports 0.00 Total exports 0.13 Total exports 7.81WT/ACC/AND/3
Page 75(c) Government procurement statistics, in Ptas
1996 1997 (*)
Authority Investment costs Consumer goods Services co sts Investment costs Consumer goods Services costs
Government of Andorra 10,053,854,079 2,330,579,069 1,675,749,287 13,327,000,000 2,236,354,354 1,808,725,063
Comú de Canillo 457,946,204 50,878,105 57,768,561 1,220,018,379 77,812,723 123,136,690
Comú de Encamp 798,610,725 152,185,731 207,054,573 981,531,426 189,091,432 269,326,030
Comú de Ordino 338,098,772 49,605,838 38,077,673 183,715,164 58,732,458 32,692,896
Comú de La Massana 125,247,611 53,608,301 89,321,753 252,507,571 58,251,583 83,627,343
Comú de Andorra la Vella 1,165,190,871 235,274,814 554,103,301 964,135,543 253,826,683 560,660,137
Comú de St. Julià de Lória 51,820,630 72,891,909 53,306,324 399,620,067 84,937,316 59,701,233
Comú de Escaldes 1,225,121,313 116,736,438 146,985,648 444,822,387 116,489,885 185,913,325
FEDA 795,080,329 508,504,253 2,497,051,052 821,627,753 430,717,226 2,479,394,181
STA 987,939,000 1,182,673,000 174,116,000 1,575,937,000 1,611,117,000 240,741,000
CASS 232,597,522 33,105,193 113,034,368 41,489,509 33,525,884 147,283,920
SAAS 103,564,000 413,186,000 484,528,000 86,422,000 670,005,000 786,528,000
CNIA 14,367,000 51,065,000 21,532,000 12,595,000 64,902,000 21,199,000
INAF 838,898 19,586,658 21,346,624 9,500,000 51,675,360 55,981,640
Res. Solà d'Enclar 5,063,510 16,560,236 16,784,933 1,652,179 19,612,448 18,065,331
TOTAL 16,355,340,464 5,286,440,545 6,150,760,097 20,322,573,978 5,957,051,352 6,872,975,789
*  The data for 1997 are provisional.
Note: Investment costs include investment in real terms.
The cost of consumer goods includes the purchase of equipment, raw materials and supplies of various products.
Expenditure on services includes rent, electricity, water and telephone charges, insurance, travel agency costs, audits, contro ls, communications, transport, work carried
out by third parties, and the purchase of electric power abroad.WT/ACC/AND/3
Page 76
ANNEX 2
List of Laws and Legal Acts
1. List of laws regulating the activity of the customs authorities
- Customs Code, adopted on 20 June 1996 (BOPA, supplement five, year 3,
14 June 1991);
- Implementing regulations of the Law on the Customs Code under the Agreement
between the Principality of Andorra  and the EC (BOPA No. 13, year 9,
5 February 1998);
- Internal regulations of the Andorran customs service, adopted on 7 August 1991
(BOPA No. 33, year 3, 14 August 1991);
- Law on customs fraud, adopted on 11 April 1996, (BOPA No. 32, year 8,
8 May 1996), as amended by the Law of 11 March 1998 (BOPA No. 16, year 10,
3 April 1998);
- Regulations on contentious proceedings in customs matters (BOPA No. 54, year 10,
28 October 1998).
2. Non-tariff regulation of imports
- Text of the Agreement between the Princi pality of Andorra and the EC on a customs
union, Title II, Article 13 on exemptions from import duties;
- Law of 25 December 1985, tax on consumption together with Article 5 on
exemptions in the IMI Law.
- See also the implementing regulations of the Law on the Customs Code, Part 4,
Import – Customs Declaration for goods within the customs territory of the
Principality of Andorra, Article 32.
3. Non-tariff regulation of exports
- See also the implementing regulations of the Law on the Customs Code, Part 4,
Import – Customs Declaration for goods within the customs territory of the
Principality of Andorra, Article 33.
4. Laws and regulations relating to foreign investment in the Principality of Andorra
- Law on Business Firms, dated 19 May 1983;
- Law regulating the establishment of new banking institutions under Andorran law
(BOPA, No. 37, year 10, 29 July 1998);
- Law regulating the basic administrative regimes of banking institutions (BOPA
No. 37, year 10, 29 July 1998).
- Law regulating the minimum registered capital of banking institutions under
Andorran law (BOPA No. 37, year 10, 29 July 1998).WT/ACC/AND/3
Page 77
5. Other laws dealing with economic issues that affect trade
- Law on the tax on consumption, adopted on 30 December 1985;
- Law on the IMI, adopted on 26 June 1991;- Accession of the Principality of Andorra to the Customs Cooperation Council, dated
3 September 1998 (BOPA, No. 26, year 10, 6 July 1998);
- Accession to the ATA Convention, dated 2 September 1998 (BOPA No. 26,
10 June 1998);
- Trademark Law, dated 11 May 1995;
- Law establishing the Trademark Office Tax, dated 5 October 1995;
- Implementing regulations of the Trademark Law and the Law on the Trademark
Office Tax (BOPA, No. 10, year 8, 14 February 1996);
- Law amending the general tax on consumption adopted on 4 June 1998 (BOPA,
No. 33, year 10, 8 July 1998);
- Law amending the Law on the indirect taxation of goods, adopted on 4 June 1998
(BOPA, No. 33, year 10, 8 July 1998);
- Government Decree dated 16 September 1998 on the export of products originating
in Andorra under a preferential regime (BOPA, No. 48, year 10, 23 September 1998);
- Decree regulating the import health report, duly completed together with the
summary import declaration (DAU), for the control of goods subject to health
inspection (BOPA, No. 33, year 10, 8 July 1998),
- Decree on literary and artistic property, dated 25 June 1971;
- Trademark Law adopted on 11 May 1995.
6. Texts of laws on the judicial structure in Andorra
- Basic Law on Justice, adopted on 3 September 1993 (BOPA, No. 51,
3 September 1993);
- Transitional Law on Judicial Proceedings adopted on 21 December 1993 (BOPA
No. 3);
- Law Establishing Administrative Jurisdiction (BOPA No. 38, year 3, page 703);- Administrative Code, adopted on 29 March 1989;- Criminal Code, adopted on 11 July 1990 (BOPA, No. 21, year 2, page 377), amended
on 11 May 1995;
- Code of Criminal Procedure, adopted on 16 February 1989;WT/ACC/AND/3
Page 78
- Basic Law on the Constitutional Court, adopted on 3 September 1993 (BOPA, No. 51,
year 5, 28 September 1993).
- Basic Law amending the Criminal Code (C ode of Criminal Procedure) (BOPA, No. 1,
year 11, 7 January 1999).
7. 
(a) Existing laws, regulations or administrative guidelines which significantly affect trade in
services.
(b) Publications or sources of information concerning measures of general application, of
relevance to the GATS.
(c) Enquiry points, if any, as foreseen in Article III of the GATS.WT/ACC/AND/3
Page 79
ANNEX 3
Information on Implementation and Administration of the
Customs Valuation Agreement
Preliminary remarks
1. As noted in point IV.1(h) of the Memorandum, the customs valuation provisions are
contained in Articles 26-34 of the national Cu stoms Code, which are developed further in the
implementing regulations of the Law on the Code (third part of the customs valuation implementing
regulations, Articles 1-34 and Annexes 1-4).
2. For the purpose of this Annex, the following definitions apply:
Code:  the national Customs Code established by the Law approved by the General Council
on 20 June 1996.
Agreement: the Understanding on the Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994.
Valuation RA: the implementing regulations of the Customs Code, third part, "Customs
Valuation", approved by the Government (BOPA, No. 13, year 9, 19 February 1997).
1. Questions concerning Article 1
(a) Sales between related persons
(i) Are sales between related persons subject to special provisions?
Sales between related persons may be subject to special provisions.  Nevertheless, the fact
that the buyer and seller are related is not sufficient grounds to consider the value of the transaction to
be unacceptable.
Although Article 4 of the Valuation RA places lim its on the nature of relations likely to result
in rejection of the transaction value, the provisions of Article 27.1(d) of the Code state that such
relations do not in themselves constitute sufficient proof to reject the transaction value.
Article 27.2(a) of the Code outlines some practical procedures to ensure that the relations
between the buyer and seller have not affected the invoiced price.
Article 1 of the Agreement on Implementation of Article VII of the GATT 1994 corresponds
in every respect to Article 27, points 1 and 2, of the Code.
(ii) Is the fact of intercompany prices prima facie considered as grounds for regarding the
respective prices as being influenced?
The existence of intercompany prices is not considered as grounds for questioning the value.
Article 27.2(a) of the Code provides that investigation to determine whether the relations have
affected the price shall only be undertaken "if necessary", in other words, if there is any doubt
regarding the acceptability of the price.WT/ACC/AND/3
Page 80
Article 27.2(b) provides for consultation between the customs administration and the
declarant.  The latter is given an opportunity to show  that the intercompany value is very close to that
applying to sales at about the same time for identical or similar goods.
(iii) What is the provision for giving the communication of the aforementioned grounds in
writing if the importer so requests?  Article 1.2(a)
Article 27.2(a) of the Code states that the customs authorities shall inform the declarant of the
grounds that led them to consider that the relationship influenced the price.
The communication may be made in writing, giving the declarant a reasonable opportunity to
respond.  This applies not only to the way in which the value is determined but also to the grounds for
rejection of the transaction value.
In addition, point 1 of Article 34 of the Valuation RA states that the customs service is not
necessarily obliged to determine the customs value of the goods on the basis of the transaction value
method.  This applies when the customs authority has reason to doubt that the declared value
represents the total amount paid or payable defined in Article 27 of the Code.
If the customs service has reason to doubt the value, within the meaning of point 2 of
Article 34 of the Valuation RA, it informs the person concerned, giving him a reasonable opportunity
to respond.  The final decision and the grounds therefor are communicated to the person concerned in
writing.
(iv) How has Article 1.2(b) been implemented?
The provisions of Article 1.2(b) of the Agreement are covered by Article 27.2(b) of the Code.
Likewise, the Interpretative Notes contained in Annex I to the Customs Valuation Agreement arereproduced in Annex 1 to the Valuation RA.
The implementation of Article 1.2(b) takes into account these interpretation methods.
Article 27.2(b) clearly defines the conditions under which importers must prove that the intercompany
price has not been influenced by the relationship.
As mentioned under point (ii) above, the declarant must prove that the value declared is very
close to the price criteria clearly identified in points 2(b)(i), (ii), and (iii), of Article 27.  Further
details regarding some of these can be found in Article 28.2(c) and (d) of the Code and in Articles 13
and 14 of the Valuation RA.
(b) Price of lost or damaged goods
Are there any special provisions or practical arrangements concerning the valuation of lost or
damaged goods?
Article 6 of the Valuation RA provides for proportionate distribution of the price actually paid
or payable if the goods to be valued have suffered partial loss or damage.
The provisions allow any loss or damage to the goods during the course of transport to be
taken into account, irrespective of the nature of the contract and provided that the damage or loss was
noted before customs clearance.
If the damage or loss is noted after customs clearance, the regulations on refunds rather than
valuation apply.WT/ACC/AND/3
Page 81
2. How has the provision of Article 4 to allow the importer an option to reverse the order
of application of Articles 5 and 6 been implemented?
The provisions in Article 4 of the Agreement are covered by Article 28.1 of the Customs
Code.
This Article does not only define the order of application of the provisions in Article 27 but
also the order of substitute methods if there is no sale if the transaction value is rejected.  The Articles
must be applied in the order laid down in the Cust oms Code.  This applies both to the customs service
and to the declarant.
With regard to the value defined in Articles 5 and 6 of the Agreement, and as an exception to
the preceding provisions, the declarant may reverse their order of application.  This option is given inArticle 28.1 of the Code, which allows points (c) and (d) of Article 28.2 to be reversed.
3. How has Article 5.2 been implemented?
The provisions of Article 5 of the Agreement are covered by Article 13 of the Valuation RA.
Paragraph 2 in each of these two Articles contains identical provisions.  The Interpretative Notes in
Annex 1 to the Valuation RA outline the possibilities for implementing Article 5.2 of the Agreement.
Under certain conditions, it is generally allowed that, at the request of the declarant, the value
may be determined on the basis of the resale of the goods after further processing.  In this case, thevalue of the processing is deducted provided that it can be determined on the basis of objective and
quantifiable data on the cost of this processing.
4. How has Article 6.2 been implemented?
The provisions of Article 6.1 of the Agreement are covered by Article 28.2(d) of the Code.
The terms of Article 6.2 of the Agreement are elaborated further in Article 14, points 1 et seq. of the
Valuation RA.
The principle of this method is based on a calculated or computed value.  This involves
"constructing" the customs value on the basis of the constitutive elements of the price and so, in
effect, taking into account the production costs supplied by the producer of the goods.
Consequently, this method can only be used if:- The producer supplies the customs service with the data needed to establish the costs;
and
- the producer agrees to allow any subsequent verification that might be necessary.Regarding the latter point, although the Andorran customs authority cannot compel or oblige
a person who is not resident in the Principality of Andorra to supply the elements needed to determine
a value calculated, the information provided by the producer can be verified by the Andorran
authorities in third countries.  Any verification in the producing country, however, may only be
carried out with the agreement of the producer and provided that sufficient advance notice is given to
his country's authorities and that the latter do not object to the investigation (last sentence of
Article 14.1 of the Valuation RA).WT/ACC/AND/3
Page 82
5. Questions concerning Article 7
(a) What provisions have been made for making value determinations pursuant to
Article 7?
The provisions of paragraphs 1 and 2 of Article 7 of the Agreement are covered by Article 29,
points 1 and 2, of the Code.
These state that, if it is not possible to use the aforementioned valuation methods, the customs
valuation shall be determined consistently with the principles of the GATT Agreement.  They also set
out in detail the criteria on which customs valuation may not be based.
The Interpretative Notes to Article 29.1 of the Code, contained in Annex 1 to the
Valuation RA, define the main features of this method, called "last recourse", making it clear that:
- The values should be established by applying the valuation methods set out in
Articles 27  and 28 of the Code with reasonable flexibility;
- where the customs value cannot be determined by flexible use of alternative methods,
it should be determined by agreement between the importer and the customs authority
consistently with the GATT provisions.
For example, valuation based on the transaction value of identical or similar goods may take
into consideration customs values already accepted for goods coming from countries other than the
exporting country (point 3(a) of the Interpretative Notes but allowing for the possibility of
adjustment).
The time-limits provided for the comparative and deductive methods may also be flexible
(points 3(b) and 3(c) of the Interpretative Notes).
Other valuation elements can also be considered, for example, usual selling prices for export
to the Principality of Andorra or rental rates or by  using the services of an expert or catalogue prices
on the domestic market for identical or similar imported goods.
(b) What is the provision for informing the importer of the customs value determined under
Article 7?
Article 29.1 of the Code covers paragraphs 1 and 2 of Article 7 of the Agreement.
The Article prescribes inter alia respect for the principles laid down in the Agreement on
Implementation of Article VII of the GATT 1994 and consequently respect for the principles set out
in Article 7.3 therein.  There are no specific formalities for its application.  It should be noted that, to
date, no such procedure has been applied.
As regards information for importers, to supplement point 1(a)(iii) above, it should be noted
that the provisions contained in Articles 27.2(a) of the Code and 34 of the Valuation RA deal with all
the valuation methods used.  They thus cover both adjustments to the transaction value and
application of substitute value methods when these are used.
The confidential nature of information given by the customs service to importers is respected
under Article 14 of the Code.  There is also reference to this article in point 3 of Article 14 of the
Valuation RA.WT/ACC/AND/3
Page 83
(c) Are the prohibitions found in Article 7.2 delineated?
The prohibitions in Article 7.2 of the Agreement are defined in detail in point 2 of Article 29
of the Code.
6. How have the options found in Article 8.2 been handled?  In the case of f.o.b.
application, are ex-factory prices also accepted?
The provisions of Article 8.2 of the Agreement are covered by Articles 30.1(e) and 31(a) of
the Code.  Article 25 of the Valuation RA, in connection with the application of Articles 30.1(e) and
31(a) of the Code, simply states that, as far as the provisions concerning the place of entry into the
customs territory of the European Community and transport costs therein are concerned, the
provisions adopted by the EC apply.
Nevertheless, the remarks in paragraph IV.1(h) of the Memorandum regarding the following
should also be taken into account:
- In general, the reservations and amendments that need to be made to certain
definitions in order to cover the situation of the Principality of Andorra (EC –
Andorra customs union only covers products in Chapters 25-97 of the HS, applying
the European Community's customs tariff – autonomy and application of the national
customs tariff for products covered by Chapters 1-24 of the HS);
- to be more precise, for example, the two distinct definitions of the expression
"country of importation" in Article 15.1(b) of the Agreement.
The cost of transport and insurance, together with the cost of loading and handling connected
with transport, up to the place of entry into the customs territory of the importing country must beincorporated in the customs value (Article 8.2 of the Agreement, consistent with Articles 30.1(e) and
31(a) of the Code as regards the elements to be added or deducted – Articles "to be amended" in the
light of the remarks above).
Article 27.1 of the Code implies that, in general, for the purposes of valuation, the price
actually paid or payable should be used, i.e., the net price invoiced by the seller.  Point 3(a) of this
Article, however, when defining the concept of price actually paid or payable, intimates that there is
no systematic link between the price invoiced and the price actually paid for the imported goods.
In general, the amount of transport and insurance costs taken into account when calculating
the customs valuation depends on the INCOTERM used.  In the case of the buyer/seller relationship,
it indicates the time and place of transfer of th e charges and risks relating to the goods traded.
In certain cases, however, the declarant may request the customs services to accept an ex-
factory price as the customs value even though the invoiced price indicates an f.o.b. price.  He must
prove that there are special and relevant circumstances that have led to the export of these goods to
the customs territory of the Principality of Andorra.  This may be the case, for example, if there aresuccessive sales within the meaning of Article 8 of the Valuation RA provided that the transaction is
acceptable according to Article 27 of the Code (point 1 of Article 8 of the Valuation RA).
In any event, the customs service must consider whether the acceptability criteria for the
request have been met in accordance with Articles 27 of the Code and 8 of the Valuation RA, and alsoexamine closely the adjustments made according to Articles 30 and 31 of the Code.  In addition,
Articles 30-34 of the Valuation RA apply.WT/ACC/AND/3
Page 84
7. Where is the rate of exchange published, as required by Article 9.1?
Articles 27 and 28 of the Valuation RA, which im plement Article 33 of the Code, define the
rules for determining the exchange rate to be used  for the customs valuation of imported merchandise
(Articles 28 and 29 of the Valuation RA as modified by the amending Regulation of 7 October 1998).
The principle applied is a monthly exchange rate, in accordance with Article 28 of the
Valuation RA.  The exchange rate for conversion in to currency used in Andorra for the purpose of
determining the customs value, applicable to customs declarations made over a given month is as a
general rule the rate published on the second to last Wednesday of the preceding month.
The rates are published in the Official Journal of the Principality of Andorra (BOPA) in the
light of the exchange rates published by  the Association of Andorran Banks (ABA).
Article 29 of the Valuation RA contains a safeguard clause allowing the rate mentioned in the
preceding paragraph to be replaced by a new rate applicable upon publication in the BOPA if the
fluctuation in the exchange rate is 5 per cent or more.
8. What steps have been taken to ensure confidentiality, as required by Article 10?
A person making a customs declaration and any person directly or indirectly concerned by
import transactions must provide the customs service with all the documents and information needed
for valuation.
Although these obligations are not systemically enforced, the customs service may always
request the persons concerned to provide proof of the value declared.
Article 14 of the Code, which is consistent with Article 10 of the Agreement, states that any
information which is by nature confidential or is provided on a confidential basis is covered by
professional secrecy and may not under any circumstances be disclosed without the specific
permission of the person providing such information.
This provision applies inter alia  to customs valuation, not only to the information given by
the declarant, but also by his principal or by third parties.
9. Questions concerning Article 11
(a) What rights of appeal are open to the importer or any other person?
In addition to the declaration obligation in Article 57.1 of the Code, and pursuant to
Article 30 of the Valuation RA, a declaration of elem ents pertaining to the customs value of imported
goods, form DV1, must be provided when the exemption requirements defined in point 2 of the
Article are not met.
In addition to facilitating customs checks, the information in the DV1 also makes the
declarant aware of the customs value and so avoids any problems that might occur during the customs
control.
If the customs service has doubts or calls into question the value declared, it informs the
person concerned, in writing if so requested.
The procedure already described under points 1(a)(iii) and 5(b) above also applies to the
provisions in Articles 27.2 of the Code and 34 of the Valuation RA.WT/ACC/AND/3
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Importers may provide the customs authorities with evidence that the requirements on
acceptability of the value have been met, giving the arguments upholding their point of view in
writing.  The final decision, together with the relevant grounds, are communicated to the person
concerned in writing.  This procedure is the responsibility of the legal services of the customs
department.
In addition, Title VIII of the Code allows for a right of appeal, limited to persons directly and
individually affected by decisions taken by the customs authorities related to application of the
customs regulations.  Persons who have requested a decision on application of the customs regulations
under Article 6 of the Code may lodge an appeal if the customs service fails to respond.
The provisions in Articles 228 and 229 of the Code guarantee the right of persons to be
treated fairly.
According to Article 228, the right of ap peal may be exercised in two stages:
An initial administrative stage before the Go vernment, pursuant to point 228(a) of the Code
and Article 124 of the Administrative Code of 29 March 1989.  The relevant procedures aredefined in Chapter IX "Administrative Appeal s" of the aforementioned Code (Code adopted
by the General Council on 13 July 1987 and published in the BOPA of 10 April 1989, under
No. 6, pages 133-145);
A second stage before the judicial authorities, pursuant to point 228(b) of the Code and in
accordance with existing domestic legislation.
(b) How is he to be informed of his right to further appeal?
There must be an administrative appeal before an appeal may be made to the judicial
authorities (Article 125 of the Administrative Code ).  Furthermore, Article 126 of the Administrative
Code states that, if no reply has been received within two months from the date of lodging the
administrative appeal, the latter is deemed to be rejected.
As a last resort, importers may then lodge an appeal with the judicial authorities.  The same
applies if the administrative appeal is rejected under Article 127.
The time-limit for lodging a judicial appeal is 13 days calculated either from the date of
notification of the rejection of the administrative a ppeal or after expiry of the two months following
which the appeal is deemed to be rejected.
In accordance with paragraphs 1 and 2 of Article 11 of the Customs Valuation Agreement, the
sole fact of exercising a right of appeal does not involve any penalty or threat of penalty for the
importer.
On the other hand, lodging an appeal does not have any suspensive effect.  Nevertheless,
according to Article 229 of the Code, the customs authorities may defer carrying out all or part of thedecision contested when there are valid reasons to doubt its conformity or irreparable damage may be
caused to the person concerned.WT/ACC/AND/3
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10. Provide information on the publication, as required by Article 12, of:
(a)(i) The relevant national laws
The national laws of general application that en force the Agreement will be published in the
BOPA (Official Journal of th e Principality of Andorra).
The Law on the Customs Code, referred to in this Annex, was approved by the General
Council on 20 June 1996 and published in the BOPA of 10 July 1996 (No. 48, year 8).
(ii) The regulations concerning the application of the Agreement
The implementing regulations on customs valuation (third part of the RA) were approved by
the Government on 20 June 1996 and published in the BOPA of 19 February 1997 (No. 13, year 9).
(Take into account inter alia the remarks in point IV.1(h) of the Memorandum and
observance of the relevant Community provisions which apply to the Principality of Andorra under
the EC-Andorra Agreement.)
(iii) The judicial decision and administrative rulings of general application relating to the
Agreement
No judicial decision or administrative ruling of general application on customs valuation has
been taken.
(iv) General or specific laws being referred to in  the rules of implementation or application
As stated in point 5(a) above, the Administrative Code was published in the BOPA of
10 April 1989.
(b) Is the publication of further rules anticipated?  Which topics would they cover?
As indicated in point IV.1(h) of the Memorandum and briefly mentioned in paragraph 6
above:
- Some aspects of the Code have to be redefined;- the provisions of the Valuation RA only deal with industrial products in Chapters 25-
97 of the HS, although in practice they are applied to all the products in the HS.
Following amendments to the Code, the implementing regulations could be revisedand extended to all products in the HS.
As these are priorities, new rules will undoubtedly be issued in due course.
11. Questions concerning Article 13
(a) How is the obligation of Article 13 (last sentence) being dealt with in the respective
legislation?
In order to facilitate formalities and procedures and at the same time respect the regulations,
Article 74 of the Code allows the customs declaration under Article 60 to exclude some of the details
mentioned in point 1 of the Article.WT/ACC/AND/3
Page 87
(b) Have additional explanations been laid down?
Additional explanations have been given on the treatment of declarations indicating a
provisional value.
This does not prevent the withdrawal of the goods concerned (Article 59.1 of the
implementing regulations, fourth part, entry and customs declaration procedure for goods in the
customs territory of the Principality of Andorra).
Article 59 also provides that, where the customs declaration indicates a provisional value, the
goods may be withdrawn without prejudice to the provisions of Article 53 of the regulations, but also
that the customs authorities:
- Immediately take into account the amount of the duties calculated on the basis of this
indication (Article 59.2, first subparagraph);  and
- where appropriate, require the deposit of a sufficient guarantee to cover the difference
between this amount and the amount that might finally be payable on the goods(Article 59.2, second subparagraph).  Nevertheless, without prejudice to any
subsequent changes due, for example, to the final determination of the customs value,
instead of providing a guarantee the declarant may request that the duties that might
be finally imposed on the goods be taken into account immediately.
12. Questions concerning Article 16
(a) Does the respective national legislation contain a provision requiring customs
authorities to give an explanation in writin g as to how the customs value was determined?
As explained in points 1(a)(iii) and 5(b), second paragraph, above, Articles 27.2(a) of the
Code and 34.2 of the Valuation RA allow the cust oms authorities to give the importer information
concerning any doubts they may have regarding the declared value and the reasons therefor.
The customs authorities provide this information following a request submitted in writing.
(b) Are there any further regulations co ncerning an above-mentioned request?
As far as valuation is concerned there are no regulations on dealing with requests made to the
customs administration for explanations regarding the determination of customs value other than
those mentioned in the preceding paragraphs of this Annex.
13. How have the Interpretative Note s of the Agreement been included?
The Interpretative Notes of the Agreement are covered by Annex 1 of the Valuation RA.
Article 2.1 of the Valuation RA states that, for the application of Articles 26-34 of the Code
and all the articles comprising the customs valuat ion regulations, the application provisions in
Annex 1 of the Valuation RA apply.  This Annex repeats in toto  the Interpretative Notes of the
Agreement.
14. How have the provisions of the Decision of 26 April 1984 on the treatment of interest
charges in the customs value of imported  goods (VAL/6/Rev.1) been implemented?WT/ACC/AND/3
Page 88
The interest charges on the financing agreemen t concluded by the buyer and relating to the
purchase of imported goods are not included in the customs value.
This principle is set out in Article 31© of the Code and apply subject to the following:
- The interest charges must be separate from the price actually paid or payable for the
imported goods.  If they are included in the price, they may be deducted if the amount
is clearly shown on the invoice or on any other documentary proof such as the
financing agreement;
- the financing agreement on interest charges for deferred payment must be drawn up in
writing prior to the time of valuation of the imported goods;
- the importer must be able at any time to prove that the goods have actually been sold
at the price declared as the price actually paid or payable and that the interest rate
imposed does not exceed the rate usually applied to such transactions at the time and
in the country where the financing was agreed.
It should also be emphasized that, according to Article 31© of the Code, the principles and
conditions mentioned above are distinct from the financing terms, which can be assumed by the seller,
a bank or any other natural or legal persons.
Article 17 of the Valuation RA also provides that the principle of excluding from the customs
value the amount of interest charges paid or payable under a financing contract applies both when the
value of the transaction is accepted and when the customs value is determined by some other method.
This applies both to the substitute methods defined in Article 28 of the Code as well as to the methods
of last resort provided in Article 29.1 of the Code.
15. For those countries applying paragraph 2 of the decision of 24 September 1984 on the
Valuation of Carrier Media bearing Software Data Processing Equipment (VAL/8), how have
the provisions of this paragraph been implemented?
Article 32 of the Code provides the legal basis for special regulations on the determination of
the customs value of carrier media for data processing equipment bearing data or instructions.
Point 1 of Article 26 of the Valuation RA allows the customs valuation of imported carrier
media for data processing equipment bearing data or instructions (software) to exclude the cost or
value of the data or instructions provided that these are separate from the cost or value of the carrier
media concerned.  This distinction must be indicated on the invoice or any other documentary proof
such as the sales contract for example.
Software is therefore valued on the basis of the cost or value of the carrier media themselves.This rule applies irrespective of the valuation method used.  The cost of transport and
insurance up to the point of entry into the custom s territory is, however, added to the aforementioned
value, as noted in point 6 above.
Point 2 of Article 26 of the Valuation RA, however, restricts the scope of application of
point 1 by providing that, according to the regulations:
- Integrated circuits, semiconductors, and similar devices or articles containing such
circuits or devices are not "carrier media";WT/ACC/AND/3
Page 89
- sound recordings, cinematographic or video recordings do not constitute "data or
instructions".
Note: Under Article 7 of the EC-Andorra Agreement, the interpretative texts issued by the
European Commission concerning the application of the customs regulations must be applied
uniformly by the Principality of Andorra.  This  applies in particular to commentary N.2 of the
Customs Code Committee defining the main technical expressions used in Article 167 of the
Provisions on Application of the Community Customs Code, resulting from Council
Regulation (EEC) No. 1055/85 of 23 April 1985, taking into account the decision of the
Committee on Customs Valuation set up under Article 18.1 of the Agreement, both the
Article and the decision corresponding in ev ery way to Article 26 of the Valuation RA.
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