RESTRICTED
WORLD TRADE WT/ACC/ALB/8/Add.1
8October 1996
ORGANIZATION(96-4091)
Original: English
ACCESSION OFALBANIA
Additional Questions andReplies
Addendum
Thefollowing additional questions andreplies, totheMemorandum ontheForeign Trade
Régime (document L/7613) andtotheearlier Replies toQuestions (documents WT/ACC/ALB/3 and
WT/ACC/ALB/4), related toimport regulations, agriculture policies andinsurance services havebeen
received from theMinistry ofIndustry, Transport andTrade oftheRepublic ofAlbania.
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IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
Question 1
Itisnotclear whether theminimum import prices areminimum import values solely forthe
purpose ofcountering falseinvoices. Canproducts withatransaction price below theminimum
import price beimported aslongastheimport dutyisbased ontheminimum import price?
Answer.
Theprincipal aimofminimum import prices istocounter falseinvoices. Products witha
transaction price below theofficial minimum price maybeimported, butthebasis ofcalculating the
dutywillbetheofficial minimum price.
Question 2
Thespecial customs duties referred toinLawNo.7609OnCustoms Tariffs (answer toquestion 5)
areusedbothasprotective measures -likeasafeguard clause -andas"prohibitive" measures,
inparticular toprevent unfair competition, aswillbemore specifically defined inAlbanian law.
Please givedetails ofthecircumstances inwhich these duties canbeimposed. Canthese duties
beassimilated toanti-dumping orcountervailing duties? Ifso,towhat extent isthesystem in
linewiththerulesagreed internationally? DoesAlbania haveanyplans torepeal Article 12(special
customs duties) ofLawNo.7609 OnCustoms Tariffs?
Answer.
Details onthecircumstances inwhich theseduties canbeimposed, aswellastheirrelationship
toanti-dumping andcountervailing duties, havenotbeendefined. These issues, aswellasissues relatedWT/ACC/ALB/8/Add.1
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toconformity withinternational rules, willbeaddressed when Albania develops lawsandimplementing
regulations fortherelevant parts oftheLawonCustoms Tariffs.
Question 3
WillAlbania adopt theHarmonized System? Ifnot,whynot? Have theexplanatory notes come
intoeffect?
Answer.
Albania adopted theHarmonized System in1995.
Question 4
Have theexplanatory notes forthecustoms nomenclature beencompleted? Ifyes,what istheir
general content?
Answer.
Yes. Theexplanatory notes werecompleted attheendofSeptember 1996 andareawaiting
approval bytheCouncil ofMinisters andParliament. Their content isbased onexplanatory notes
ofinternational Harmonized System.
Question 5
Itisunderstood thatAlbania hasnow4tariff levels (0,5,20,30%). Hastheelimination ofthe
5percentimport surcharge, byanychance been "compensated" through itstotal orpartial
incorporation intotherevised import tariff schedule? DoesAlbania levyother charges onimports,
including charges forservices rendered?
Answer.
Since 1995, Albania hashad4tarifflevels (0,7,25and40%). Thesurcharge taxof5percent
hasbeenabolished without being compensated through therevised import tariff schedule. Besides
duties, essentially allimports aresubject totheValue Added Tax(VAT). Ashort listofimported
commodities arealsosubject toexcise taxes. Currently, there arenocharges forcustoms services.
Ifanysuchfeesareadopted theywillnotbehigher thanafewdollars foreachdeclaration.
Question 6
Itisstated (answer toquestion 9)thatduties onusedvehicles arespecific. Alistofspecific duties
applied tothedifferent kinds ofusedvehicles isprovided, e.g.US$500 forcars,US$300 forminibus
andsoon.Arethespecific duties thesame amount forthedifferent categories ofagiven kind
ofusedvehicle ordotheydiffer according tothese? Isthere anydefinition of"used vehicles"
interms ofage? Ifnot,isthisunder examination?
Answer.
Specific duties arenolonger applied tovehicles, usedornew.WT/ACC/ALB/8/Add.1
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Thedefinition of"used vehicles" isbased onthenumber ofkilometres thatthevehicle has
travelled before importation. Every vehicle thathastravelled more than10,000 kmisconsidered a
usedvehicle.
Question 7
Does Albania have plans tosimplify customs formalities?
Answer.
Yes. Albania isplanning tosimplify thecustoms procedures. AnewdraftoftheCustoms
Code hasbeenprepared based ontheKyoto Convention andtheCustoms Code oftheEuropean Union.
Question 8
Isthedefinition of"serious damage" usedinArticle 13and14ofAlbanian Tariff areconsistent
withtherelevant WTO Agreements (question No.22ofWT/ACC/ALB/4)?
Answer.
There isnodefinition of"serious damage". Thisisoneoftheissues thatmustbeaddressed
when Albania develops lawsandimplementing regulations onanti-dumping andcountervailing duties.
4. Policies Affecting Foreign Trade inAgriculture
Question 9
Wearepleased toseeinthenewinformation (agriculture supporting tables) thatAlbania says
thatitdoes notuseexport subsidies, butitwould liketheopportunity toconduct bilateral
discussions withinterested countries before making adecision onthecommitments initsagriculture
schedule. Could Albania confirm thatitsexport subsidy commitments willbebound atzero?
Answer.
Wewould appreciate theopportunity toconduct bilateral discussions withinterested countries
before confirming ourintentions withrespect toexport subsidies foragricultural products.
Question 10
Albania foresaw thatsome oftheremaining price controls willbeliberalized atthebeginning
of1996. Wewould liketoknow what hashappened tothecurrent price controls onflour and
bread.
Answer.
Theceiling prices forflourandbread wereabolished byDecision oftheCouncil ofMinisters
No.470of15July1996. Water andelectric energy usedforbread andflour production arestill
subsidized, though insmall amounts. TheAlbanian Government intends toremove these subsidies.WT/ACC/ALB/8/Add.1
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Question 11
Itwould beuseful tohavemore information about foreign ownership ofland. Itisnotsufficiently
clear ifforeigners canbuylandornot,orifitcanbeonlyleased.
Answer.
Foreigners canbuynon-agricultural land. Foreigners cannot buyagricultural land, butcan
lease itforaperiod ofupto99years.
Question 12
What isthecurrent ceiling price forgrains? Doesthisceiling apply tobothimported anddomestic
production? Aregrain producers receiving anysubsidies thisyear? Ifso,please givedetails.
Answer.
Since July1996, Albania hasnotapplied ceiling prices forcereals. Currently, Albania isnot
providing subsidies tocereal producers, except forwater subsidies which areprovided toallfarmers.
Question 13
Thetwo(agriculture) State foreign trading enterprises areintheprocess ofbeing privatized.
Please provide aprogress report.
Answer.
TheMinistry ofAgriculture hashadthreeStateforeign tradeenterprises under itsresponsibility.
Twoofthem, Eksimagro andAgroimport, arefullyprivatized. Thethirdone,Alimpeks, hasbeen
transformed intoacommercial company, which isthefirststeptowards privatization. Theimport
andexport activities ofAlimpeks represent anegligible share oftrade inagricultural goods.
Question 14
Please givedetails onhowthelicensing system onliveanimals andseeds andseedlings actually
works. Whoissues thelicences? Onwhat basis could alicence berefused? (seeWT/ACC(ALB/4,
question 76).
Answer.
Please seeinformation provided intheresponses tothequestionnaire onimport licensing
procedures which willbetransmitted totheWorking Party.
Question 15
Does Albania have either import quotas orimport licences forfish? Ifso,please givedetails.
Answer.
No.Albania doesnothaveimport quotas orimport licences forfish. Albania doesnothave
quantitative restrictions ontheimport ofanycommodity.WT/ACC/ALB/8/Add.1
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VI. TRADE-RELATED SERVICES RÉGIME
Question 16
Does Albania envisage anymeasure toendtheState monopoly ininsurance services?
Answer.
Forthetimebeing, theInsurance Institute ofAlbania (INSIG) isthemonopoly provider of
insurance services inAlbania. However, steps arebeing taken which willresult intheprivatization
ofINSIG andtheopening oftheinsurance sector toparticipation bydomestic andforeign providers.
Thefirststeptowards thisgoalwillbethetransformation ofINSIG intoacommercial company. It
isexpected thatcommercialization willbetaking place inlate1996orearly1997. Privatization would
follow assoonaspossible thereafter incompliance withtheGovernment 'sstrategy forprivatization
oflarge companies.
Question 17
Could youdescribe thepresent situation intheinsurance market?
Answer.
Theinsurance market inAlbania isstillsmall -US$13.5 million gross premium income in
1995-butisgrowing. TheInsurance Institute ofAlbania reports thatincome frominsurance premia
grew byalmost 20percentin1995. Similar growth isexpected in1996. Thelargest market iscar
insurance (88percentoftotalpremium income), followed byproperty insurance (8percent) and
personal accident andtravel insurance (4percent). Lifeinsurance wasintroduced forthefirsttime
inlate1995, andisconsidered tobeanimportant market forthefuture.