RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/ALB/6/Rev.1 
22 July 1999 
 (99-3071) 
Working Party on the 
Accession of Albania  
 
 
  
DRAFT REPORT OF THE WORKING PARTY  
ON THE ACCESSION OF ALBANIA 
 
Revision
 
 
Introduction 
 
1. In November 1992, the Government of Albania requested accession to the General 
Agreement on Tariffs and Trade (GATT 1947). At the 48th Session in December 1992, the GATT 
1947 CONTRACTING PARTIES established a Working Party to examine the application of the 
Government of Albania to accede to the General Agreement under Article XXXIII, and to submit to 
the Council recommendations which may include a draf t Protocol of Accession.  Membership of the 
Working Party was open to all contracting parties indi cating the wish to serve on it.  Having regard to 
the Decision adopted by the General Counc il on 31 January 1995, the GATT 1947 Accession 
Working Party was transformed into a WTO Accessi on Working Party.  The terms of reference and 
the membership of the Working Party ar e reproduced in document WT/ACC/ALB/3. 
 
2. The Working Party met on 29-30 April and 29 October 1996; 2 October 1998;  
27 January 1999, 13 April 1999; 9 July 1999 and …  under the Chairmanship of Mr. A. Pinto de Lemos (Portugal).  
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Albania, the questions s ubmitted by Members on the foreign trade regime of 
Albania, together with the replies thereto, and other information provided by the authorities  (WT/ACC/ALB3/4/8; WT/ACC/ALB/23; WT/ACC/ALB/2/Rev.1; WT/ACC/ALB/25; WT/ACC/ALB/25/Rev.1; WT/ACC/ALB/26 – WT/ACC/ALB/42), including the following 
legislative texts: 
- Law No. 8417, dated 21 October 1998 "For the Approving of the Constitution of 
Albania"; 
- Law No. 8449, dated 27 January 1999 "On Cu stom Code of the Republic of Albania"; 
- Decision No. 205, dated 13 April 1999 of the Council of Ministers (COM), 
"Implementing Provisions of the  Custom Code"; WT/ACC/SPEC/ALB/6/Rev.1 
Page 2  
 
 - Law No. 8464, dated 11 March 1999 "On Standardisation"; 
- Decision No. 242, dated 28 May 1999 of the COM "For the Approval of the Code of 
Good Practice for Adoption, Approval  and Application of Standards"; 
- Draft Decision of the COM "For the Preparation, Adoption and Application of 
Technical Regulation and the procedures fo r assessment of Conformity for Standards 
and Technical Regulation"; 
- Draft Decision of the COM "For the Exch ange of Information for Standards and 
Technical Regulation"; 
- Draft Decision of the COM "For the Cr iteria and Competencies in the Field of 
Standardisation, Certification and Accreditation"; 
- Law No. 8466, dated 24 March 1999 “On Antidumping”; 
- Law No. 7819, dated 27 April 1994 "For Industrial Property"; - Law No. 8477, dated 22 April 1999 “On some Changes and Supplements on the law 
No. 7819, dated 27 April 1994, For Industrial Property”; 
- Law No. 8488, dated 13 May 1999 “On the Pr otection of Topographies of Integrated 
Circuits”; 
 - Law No. 7564, dated 19 May 1992 "On Copyright"; 
- Law No. 7923, dated 19 April 1995 "On some Changes in the law no. 7564, dated 19 
May 1992, "On Copy right""; 
- Draft Law "On the Protection of the Personal Data"; - Draft Law "On the Right of Information over the Official Documents"; 
- Law "On Custom Tariffs", is changed by  the new law "On Tariff Nomenclature", 
dated March 1999; 
- Law No. 7609, dated January 1993 "On Priority Tourism Development Zones" and 
the amendments; 
- Law No. 8083, dated November 1995 "F or the Telecommunications" and the 
amendments; 
- Law No. 8288, dated 18 February 1998 "On the Telecommunications Regulatory 
Body"; 
- Law No. 8084, dated 7 December 1995 "On Competition"; 
- Law No. 8308, dated 18 March 1998 "For Road Transports"; 
- Law No. 8081, dated 7 March 1996 "On In surance and Re-insurance Companies"; 
- Law "On Excise Taxes" (Law No. 7678) and amended by the law "On Excise Tax in 
the Republic of Albania", No. 8437, dated 28 December 1998. 
- Law No. 8437, dated 28 December 1998 "On Excise Tax in the Republic of Albania"; 
- Law No. 8445, dated 21 January 1999 "On Value Added Tax"; 
- Law No. 8269, dated December 1997 "On the Bank of Albania"; 
- Law No. 8365, dated 2 July 1998 "Banking Law of the Republic of Albania"; 
- Strategy on Privatisation, March 1998; 
- Law "On Privatisation", March 1998; 
- Law No. 8306, dated 14 March 1998 "On Privatisation Strategy of Primary 
Importance Sectors"; 
- Law No. 8334, dated 23 April 1998 "On th e Privatisation of Commercial Enterprises 
which Function in Non-Strategic Sectors"; 
- "Privatisation Strategy of State Owned Companies in Primary Importance Sectors"; 
- Draft Law on "Maritime Code"; 
- Report on Maritime Legislation; 
-
 Draft Law "On Free Zones"; 
- Law No. 8081, dated 7 March 1995 "On Securities"; 
- Law "On Protection of Topographies of Integrated Circuits"; 
- Law No. 7980, dated 27 July 1995 "On Sales and Purchase of Sites"; 
- Law No. 7908, dated 5 April 1995 "On Fishery and Aquaculture"; 
- Law No. 7074, dated 23 February 1993 "On Ve terinary Service and Inspectorate";  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 3 
 
 
 - Law No. 8312, dated 26 March 1998 "On Undistributed Agricultural Lands"; 
- Law No. 8318, dated 1 April 1998 "On Leas ing Agricultural La nd, Forest Land, 
Meadows and Pastures which are State Property"; 
- Law No. 8337, dated 30 April 1998 "On the Tr ansfer of Ownership of Agricultural 
Land, Meadows, Pastures and Forest"; 
- Law No. 7827, dated 31 May 1994, changed by the Law No. 8428, dated 14 December 
1998 "For the Legal Profession in the Republic of Albania"; 
- Law No. 7829, dated 1 July 1994 "On Notary"; 
- Law No. 7810, dated 6 April 1994 "Of Higher Education in the Republic of Albania"; 
- Draft Law "On the Entry, Sojourn and Employ ment of Foreigners in the Republic of 
Albania"; 
- Law No. 7971, dated 26 July 1995 "On Public Procurement"; - Law No. 8301, dated 12 March 1998 "On so me Changes in the Law 7971 dated 26 
July 1995 "On Public Procurement""; 
- Law No. 8112, dated 28 March 1996 "On some Changes in the Law 7971 of 26 July 
1995 "On Public Procurement" Amended with Law 8074 of 22 February 1996";  
- Decision No. 12, dated 1 January 1996 of the COM "On the Rules of Public 
Procurement"; 
- Draft Decision of the COM "On General Conditions of Contract"; 
- Draft Decision of the COM "On Procurement of Work"; 
- Draft Decision of the COM "On Re quest for Quotations of Goods"; 
- Draft Decision of the COM "On I nvitation to quote for Small Works"; 
- Draft Decision of the COM "On Standards Bidding Document for Procurement of 
Goods"; 
- Draft Decision of the COM "On Standa rds Bidding Documents Approved by the 
Decision of the COM No. 12, dated 1 January 1996". 
 
 
4. The representative of Albania said that membersh ip in the WTO was one of Albania's most 
important economic policy objectives.  From 1944  –1992, Albania was the antithesis of a market 
economy.  Private ownership was completely forb idden and all economic activity was controlled by 
the State, without exception.  For much of this period, Albania's economic, political and cultural ties 
with the rest of the world were reduced to an absolute minimum.  Albania's case was unique in terms 
of the intensity of the economic centralization a nd isolation.  The present situation was strikingly 
different.  The Albanian Government had passed laws providing for private ownership, entrepreneurial activity, open competition, bankruptc y, foreign investment, protection of consumers, 
privatization of small, medium and large enterprises, and many other elements of a modern 
commercial legal regime.  The steady growth of domestic and foreign investment was a vote of 
confidence by the private sector in Albania's commerc ial law reforms.  The Albanian government had 
dramatically reduced its role in almost all fields  of economic activity. The public share of GDP was 
declining, the private sector's share stood at 80 percent of GDP .  The trade share of GDP had 
increased: in 1998, the share was 20 percent.  The private sector accounts for 56 percent of exports 
and 82 percent of imports.  Approximately 76 percen t of Albania's workforce was engaged in private 
business.  Price controls had been completely e liminated on goods, although a price reference scheme WT/ACC/SPEC/ALB/6/Rev.1 
Page 4  
 
 existed for pharmecuticals.  A limited price control system existed for services, a full and complete 
listing of which was provided to members of th e Working Party in document WT/ACC/ALB/25.  
Albania's national currency, the Lek, was internal ly convertible and had be en floating freely since 
1992.  The relative stability of the Lek was one sign, among others, that Albania's efforts to exercise 
fiscal and monetary control, and more generally  to ensure macro-economic stability, had been 
successful.  Albania had turned its back on isolatio nism and pursued a program to strengthen its ties 
with the rest of the world, concluding bilatera l economic, trade and industr ial agreements with 30 
countries and other 15 agreements were under negotiations.  Albania was a member of the 
International Monetary Fund, the World Bank,  the European Bank for Reconstruction and 
Development, the Black Sea Economic Initiative and th e organization of Islamic States.  Albania was 
working towards an Association Agreement with the European Union, and, me mbership in the World 
Trade Organization.  Over the past years, Albani a had vigorously pursued a program to establish a 
market economy and to become a full participant in  the international communi ty.  The areas of tax 
reform and privatisation were th e most important problems of economic reform.  More than 75 per 
cent of national wealth had been privatized includi ng:  96 per cent of the agriculture land, 100 per cent 
of the services, 100 per cent of agriculture mechanics, 100 per cent of road transport.  A great deal of 
progress had been made in a relatively short time, and the most important elements of a market-based economy have been established.    
5. The representative of Albania said that trade libera lization had been one of  the main pillars of 
economic stabilization and reform along with price liberalization, exchange liberalization, fiscal 
control, monetary restraint and rapid privatizati on of agricultural land and small enterprises.  The 
choice was made early in the reform process to pursue rapid trade liberalization rather than slow, step-
by-step liberalization.  This choice was partly di ctated by the severity of Albania's economic and 
social crisis at the time.  The collapse of Albani an production meant that Albania had to open its trade 
regime in order to ensure the supply of consumer  goods and other commodities needed to rebuild the 
economy.  The Government of Albania recognized  that an open trade regime made important 
contributions to Albania's economic and social well- being.  The representative of Albania highlighted 
the main characteristics of Albania's trade regime:  a simple import tariff structure comprised of only 
three ad valorem  tariff levels:  five, ten, and twenty percent; no tariff peaks, only ad valorem  tariffs 
were applied, no fixed tariffs, no tariff rate quotas,  and no combined duties; the maximum tariff was 
20 percent; 29 percent of all tariff line items have rates that are 20 percent; 37 percent of all items 
have rates that are 10 percent, and 34 percent of all tariff line items had rate offers that were 5 percent 
or less; no import surcharges; no quantitative restrict ions on imports or exports, except to protect the 
environment or assist in infant industries; no export subsidies; no restrictions on current transactions;  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 5 
 
 
 no trade-related investment measures; no internal taxes or other charges that are higher for imports 
than for domestic products.  In add ition, the role of State foreign trading enterprises had been reduced 
dramatically. Despite recent disturbances, macroe conomic developments had been broadly on track.  
An episode of civil disorder, together with th e situation in Kosovo, had reduced economic and 
investor confidence, but the government estimated th at the momentum from earlier in the year would 
result in real GDP growth of 8 per cent for the year 1999, only slightly below the targeted 10 per cent 
and still implying a return of output to the level pr evailing before the devastating crisis of spring 
1997.  Other important indicators showed that the macroeconomic stability program had been 
successful:  relatively stable and low rates of infl ation, 8.7 per cent in 199 8 and a forecast of 7 per 
cent for 1999; exchange rates: stable prices had m odestly strengthened the Lek vis-à-vis the US dollar 
and average exchange rate in 1997 was lek 151.5;  in 1998 it was lek 149.  Budget revenues had 
increased in 1998 as a result of tax collection.  Tax revenue as a share of GDP had increased to 
12.5 per cent; for the first time current expenditures ( not counting interest payments) were covered by 
revenues. The government was firmly committed to continue macroec onomic stabilization and 
structural reform. 
 
6. In the expectation that the accession negotiations  would be finished expeditiously in 1999, 
permitting Albania to take part in the new series of multilateral trade negotiations, the representative 
of Albania submitted a Chart On Conformity of the New Albanian Legislation concerning the WTO 
and Status of Draft Legislation and Amendments as follows:  
 WT/ACC/SPEC/ALB/6/Rev.1 
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Chart on the Implementation of Draft Laws, Amendments, and D ecisions of the Council of Minist ers for Compliance with WTO Agreem ents 
 
Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement Date of Implementation  
 
Agreement on Agriculture 
 
Albania is in compliance with the Agreement on 
Agriculture.  No additional changes in laws or decisions of the Council of Ministers are required for 
Albania to be in compliance with WTO.  
There are no laws or decisions being drafted or 
amended  
Not applicable. 
 
Agreements on SPS  
 
The following are separate dr afts of Decisions of the 
Council of Ministers:  
1. "Criteria and Competen cies in the Fields of 
Standardization, Certification, and Accreditation" 2. "Exchange of Information on Standards and 
Technical Regulations" 
3. "On Some Changes to the Law Number 7643, On State Sanitary Inspectorate" 
4. "The Approval of the Code of Good Practices for 
Adoption, Approval and Application of Standards", Decision of the Council of Ministers, Number 242, 
dated 28.05.99  
 
  
1-2. To be in compliance with SPS. 
  
 
3. To be in compliance with the standstill and transparency provisions of SPS. 
4. To be in compliance with SPS.  
 
  
1. At the time of accession. 
 2. At the time of accession. 
 
3. At the time of accession.  
4. At the time of accession. 
 
Agreement on Textiles and Clothing 
 
Albania is in compliance with the Agreement on 
Textiles and Clothing.  No additional changes in 
laws or decisions of the Council of Ministers are 
required for Albania to be in compliance with WTO.  
There are no laws or decisions being drafted or 
amended  
Not applicable. 
 
Agreements on TBT 
 
The following are separate dr afts of Decisions of the 
Council of Ministers: 
  
 
 
  
 
 
  
  WT/ACC/SPEC/ALB/6/Rev.1
 Page 7 
Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement Date of Implementation  
1. "Exchange of Information on Standards and 
Technical Regulations" 
2. "The Preparation, Adoption and Application of 
Technical Regulations and the Procedures for Assessment of Conformity with Technical 
Regulations and Standards" 
 1-2. To be in compliance with TBT. 
 
 1. At the time of accession. 
2. At the time of accession. 
 
  
 
Agreement on Trade-Related Investment Measures 
 
Albania is in compliance with the Agreement on 
Trade-Related Investment Measures.  No additional 
changes in laws or decisions of the Council of 
Ministers are required for Albania to be in compliance with WTO. 
  
There are no laws or decisions being drafted or 
amended  
Not applicable. 
 
Agreement on Implementation of Article VI of the GATT 1994 
 
The anti-dumping agreement is covered by the Law 
"On Antidumping", Number 8466, dated 24.03.99.  The following are separate dr afts of Decisions of the 
Council of Ministers: 
 
1. "The Organization and Function of the Anti-
dumping Office" 2. "The Definitions and Fulfilment of the 
Application Forms" 
3. "The Content of the Public Notice for the Initiation of the Investigation" 
4. "The Confidential Information" 
5. The Public File (Registry) of the Antidumping Office" 
6. The Notice of the Final Decisions" 
   
The Council of Ministers is charged to issue the 
bylaws related to the Law on Antidumping.  
 
  
 
1. By the end of 1999. 
2. By the end of 1999. 
3. By the end of 1999.  
4. By the end of 1999. 
5. By the end of 1999. 6. By the end of 1999. 
  
 WT/ACC/SPEC/ALB/6/Rev.1 
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Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement Date of Implementation  
 
Agreement on Implementation of Article VII of the GATT 1994 
 
"Customs Code", Law Number 8449, dated 
27.01.99. 
 "Implementing Provisions of the Customs Code", 
Decision of the Council of Ministers, Number 205, 
dated 13.04.99.  
The Interpretive Notes of the WTO Customs 
Valuation Agreement are part of the Implementing 
Provisions of the Customs Code, Annex 6, 
"Interpretive Notes for Customs Valuation"   
The Customs Code of Albania defines Albania's 
customs procedures. 
The Decision of the Council of Ministers, Number 205 are the implementing provisions which are in 
compliance with customs valuation procedures.  
Albania is in compliance with the Customs Valuation Agreement and the Implementation of Article VII of 
GATT 1994. 
  
Albania is in compliance since May 15, 1999 with the 
adoption  
Of the Customs Code and the Implementing Provisions 
of the  
Customs Code. 
 
Agreements on Pre-Shipment Inspection 
 
Pre-shipment inspection is covered by the Customs 
Code, Article 11(4), last sentence of the paragraph. 
  
Provision on pre-shipment inspection.  
No further action required. 
 
Agreement on Rules of Origin 
 
Rules of Origin are covered by the "Implementing 
Provisions of the Customs Code", Decision of the Council of Ministers, Number 205, dated 13.04.99. 
  
To be in compliance with rules of origin.  
At the time of accession. 
 
Agreement on Import Licensing Procedures   
 
Albania will draft general legislation on import 
licensing procedures.  
The following are laws that are to be amended: 
 1. "On Seeds and Saplings", No. 7659, dated 
12.01.93  
To be in compliance with WTO import licensing 
procedures.  
 
 1-3. The changes in these laws are to simplify the 
licensing procedures.  
At the time of accession. 
  
 
1. At the time of accession. 2. At the time of accession. 
3. At the time of accession.  
  WT/ACC/SPEC/ALB/6/Rev.1
 Page 9 
Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement Date of Implementation  
2. "Law on Veterinary Services", No. 7674, dated 
23.02.93 
3. "Law on Plant Protection Services", No. 7662, 
dated 19.01.93 
 
Agreement on Subsides and Countervailing Measures   
 
Albania is in compliance with the Agreement on 
Subsidies and Countervailing Measures.  No 
additional changes in laws or decisions of the 
Council of Ministers are required for Albania to be in compliance with WTO.  
The drafting of a law on countervailing measures has 
been suspended.  The Republic of Albania will 
reconsider its decision to draft such a law after 
accession; if Albania chooses to draft this legislation it will be done according to WTO procedures. 
  
Not applicable. 
 
Agreements on Safeguards 
 
Albania is in compliance with the Agreement on 
Safeguards.  No additional changes in laws or decisions of the Council of  Ministers are required or 
Albania to be in compliance with WTO.  
The drafting of a law on safeguards has been 
suspended.  The Republic of Albania will reconsider its decision to draft such a law after accession; if 
Albania chooses to draft this legislation it will be done 
according to WTO procedures.   
Not applicable. 
 
General Agreement on Trade in Services 
 
The following are laws that are being amended: 
 1. "Law on Insurance and Reinsurance Companies" 
2. "Law on Investment Funds" 
 The following are draft laws: 
3. "Law on Theatres" 
4. "Law on Libraries"   
1. Eliminates the restriction on joint ventures. 
2. Seeks to improve the securities regime, and provide a framework for asset management.  
3. To create cond itions on market access for private 
foreign and domestic service providers on theatres, live bands, operas. 
4. To create cond itions on market access for private 
foreign and domestic library service providers.   
 
  
1. Two years from the time of accession. 
2. One year from the time of accession.  
3. At the time of accession. 
  
4. At the time of accession. 
  
  
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 10  
Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement Date of Implementation  
 
Agreement on Trade-Related Aspects of Intellectual Property Rights 
 
Albania is in compliance with TRIPs.  The following 
have been substantive changes in legislation to be in 
compliance. 
 The following are amendments to laws: 
 
1. "On Copyright" 2. "On Some Changes to the Law on Copyright" 
 
The following are Laws and draft Decisions of the 
Council of Ministers: 
 
3. Law "On Protection of Topographies of Integrated Circuits" Number 8488, dated 13.05.99 
4. Law "On Some Changes and Supplements on the 
Law No. 7819, dated 27.04.94, For Industrial Property", Number 8477, dated 22.04.99 
  
Compliance with TRIPs 
 
1-2. To bring Albanian legislation in compliance with 
the copyright provisions of TRIPs.  
 
 3-4. To bring Albania patent and trademark legislation 
in compliance with TRIPs;  4.  Also creates the 
Albanian Directorate of Patent and Trademark.  
 
 
1-4. Are already enforced and will be in compliance 
with WTO  
1-5. TRIPs Agreement.  
 
 
Agreement on Trade in Civil Aircraft 
 
Albania is in compliance with the Agreement on 
Trade in Civil Aircrafts.  No additional changes in 
laws or decisions of the Council of Ministers are 
required for WTO compliance.  
There are no laws or decisions being drafted or 
amended  
Not applicable. 
 
Agreement on Government Procurement 
 
The following are separate dr afts of Decisions of the 
Council of Ministers: 
1. "The Standard Tender  Document for the Pre-
Qualification of Goods"  
Compliance with gover nment procurement. 
  
 
 
1. At the Council of Ministers awaiting approval. 
2. At the Council of Ministers awaiting approval.  
  WT/ACC/SPEC/ALB/6/Rev.1
 Page 11 
Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement Date of Implementation  
 
2. "The Standard Tender  Document for the Pre-
Qualification of Construction" 
3. "The Standard Tender Document for the Procurement of Goods (T hose which are Large and 
Complex)" 3. At the Council of Ministers awaiting approval. 
4. "The Standard Tender Document for the 
Procurement of Systems (Those which are Large and 
Complex) for Telecommunication, Information 
Technology, etc." 
5. "The Standard Tender Document for the 
Procurement of Construction (Those which are Large and Complex)" 
6. "The Standard Tender Document for the 
Procurement of Whole Serv ices (Those which are 
Large and Complex)" 
7. "The Standard Tender Document for the 
Procurement of Complex Services (for which the Value and Duration are Specified) 
8. "The Standard Tender Document for the 
Procurement of Basic Servi ces (for which the Value 
and Duration are Specified)" These Decisions will provid e transparent rules for 
submission of tenders in the specified areas. 4. At the Council of Ministers awaiting approval. 
 
5. At the Council of Ministers awaiting approval. 
6. At the Council of Ministers awaiting approval. 
7. At the Council of Ministers awaiting approval. 
 8. At the Council of Ministers awaiting approval. 
 
 
Other Legislation  
 
Excise taxes: 
 
The following are laws that are being amended:  
1. "On Some Changes to the Law Number 8437 (On 
Excise Taxes), dated 28.12.98"  
 
 
To eliminate discriminating excise taxes rates and categories.  
 
 
1. At the time of accession. 
 
Export prohibitions: 
 All Decisions of the Council of Ministers on export 
prohibitions related to tariff lines under Chapter  
To be in compliance with rules on exports Albania will 
lift export prohibitions on the goods listed in the relevant chapters.  
At the time of accession.  
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 12  
Draft Laws, Amendments, or  
Decisions of the Co uncil of Ministers  
Relevance of the Law or Decision to WTO 
Compliance, by Agreement Date of Implementation  
41.01-41.03, Chapter 72.04, and Chapter 74.01-
74.19 of the HS will be repealed. 
  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 13 
 
 
  
7. In their opening remarks, members of the Work ing Party welcomed and supported the request 
from Albania to accede to the WTO.  In acknowledgi ng the huge impact in Albania of the difficult 
situation in the Balkans, where large populations had been uprooted, productive structures destroyed 
and employment possibilities curtailed by the lack of capital, technology, training and markets, some 
members emphasized that adherence to the multilatera l rule-based system would consolidate Albania's 
reforms and transitions towards a free market econo my system, enhance the universality of the WTO, 
and bring mutual benefits to Albania and Memb ers of the WTO.  Members expected Albania's 
accession to proceed expeditiously. 
 8. The Working Party reviewed the economic policies and foreign trade regime of Albania and the 
possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of the 
Working Party on the various aspects of Albania's foreign trade regime and on the terms and 
conditions of Albania's accession to the WTO are summarized below in paragraphs 9 to ..... 
   
ECONOMIC POLICIES 
 
Monetary and Fiscal Policy  
 
9. In response to requests for information on th e government's economic policy objectives, the 
representative of Albania stated that the main object ive of the Bank of Albania was to achieve price 
stability and to maintain this stability over time.  The monetary policy of the Bank of Albania was elaborated to serve the achievement of price stab ility.  The proper monetary instruments were chosen 
for the same purpose.  The Bank of Albania was committed to following a course of prudential and 
relatively strict monetary policy, keeping the contro l over the growth of broad money.  The results of WT/ACC/SPEC/ALB/6/Rev.1 
Page 14  
 
 the monetary policy of the Bank of Albania we re measured through the realization of three 
quantitative monetary objectives, i.e: 
- maintaining a floor on net internati onal reserves of the Bank of Albania; 
- maintaining a ceiling on the net domestic assets of the Bank of Albania; and 
- maintaining a ceiling on the net credit of the banking system of the government. 
 
10. She added that to implement the monetary policy, Bank of Albania used direct and indirect 
instruments.  The direct instruments which are used  define the minimum level of interest rates for 
time deposits at the state-owned banks and the lim it of credit for the economy.  The indirect 
instruments which are used are the percentage of re financing and the rate of required reserves.  The 
Bank of Albania used the direct instruments more inte nsively than the indirect means.  In determining 
the interest rate for deposits, the Bank of Albania accounts for the rate of growth in inflation to 
maintain stable real and positive inte rest rates to retain the public’s confidence in the banking system.  
The rate of growth in the money supply was a se cond instrument that was used to determine the 
interest rates. 
 
11. She noted this was the framework of monetary po licy that had been implemented in Albania since 
1993 and it was foreseen to be implemented during th ree other future years. The policy and monetary 
program were compiled in cooperation with IMF (i n the framework of ESAF 1 and 2 Agreements).  
In 1998, the Bank of Albania’s main objective for 1998 was realized, even better than it was 
forecasted.  The annual level of inflation was 8.7 per cent compared with the 10 per cent level that 
was anticipated.  (During 1997, the rate of inflati on was 42.1 per cent.)  The realization of the money 
supply objectives of the Bank of Albania was also at  levels better than those foreseen.  It was 
forecasted that money growth would be 23 per cent at the end of 1998; however, the growth in money 
was only 20.7 per cent.   The net international reserves was US$5 million US over the limit of the 
ceiling, providing a cover for the demand for imports.  (It was foreseen that the level of reserves was 
to be 3.8 months of imports compared with 4.7 m onths of imports).  Net domestic assets of the Bank  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 15 
 
 
 of Albania and net credit of the banking  system fo r the government were realized at less than the 
ceiling.  
 
12. The representative of Albania noted that monetary program for 1999 was compiled in such a 
manner to provide broad money growth in accordan ce with the objective of inflation, which was 
foreseen to be 7 per cent on an annual level.  The le vel of inflation for the first five months of 1999 
shows that in spite of the situation in the region the 7 per cent target will be realized.  Broad money 
growth was expected to be increased about 15 per cent.   13. Concerning fiscal policy, since 1998, the Al banian Government had implemented its 
macroeconomic stabilization packag e.  The Government has used financial and economic measures 
respecting its fiscal targets, reducing the domestica lly financed deficit through the combination of 
measures focused on an increase of budget revenue and tightening the increase of primary expenditures.  All the domestic fiscal efforts suppor t the monetary policy objectives, reducing the rate 
of inflation to 8.7 per cent for 1998 compared with  42 per cent in 1997.  This is because of a very 
large increase in private transfers and the stabilizatio n of the domestic currency.  The Government of 
Albania has guaranteed further fiscal consolidation to  keep its growth in inflation in line with its 
principle trading partners by 2001.  During the firs t 6 months of 1999, the government's fiscal deficit 
was stable.  For the remainder of 1999, the fiscal deficit, financed from domestic sources, will be 
reduced to 5.1 per cent of GDP and 3 per cent of GDP by 2000, 1 per cent less than in 1998, and less 
than half of the level in 1997.  This reduction w ill support an increase of private sector credit and will 
facilitate an increase in domestic savings.   14. She noted that necessary measures to meet the deficit targets had been accomplished.  
Government revenue as a percentage of GDP had increased, primarily from tax revenue, as a result of 
the implementation of 10 per cent tax on earned interest income, receipts from excise taxes, the solidarity tax (a supplementary income tax to fina nce the additional expenditures for public order after WT/ACC/SPEC/ALB/6/Rev.1 
Page 16  
 
 the civil disorder of September 1998), tariff revenue s, and improvements in anti-smuggling measures 
at the border.  The general increase in revenue would peak at 0.6 per cent of GDP.  From the 
expenditure side, there would be savings in all areas of budget expenditures which serve as future 
sources to finance the increase in operation and maintenance expenditures and government 
investments as well.  To increase the expenditures in  infrastructure, health, education, etc. above the 
average levels and to reach fiscal consolidation, it  was necessary to reduce tax rates and to broaden 
the tax base.  The growth rate in GDP was forecast ed to be 7.8 per cent in 1999.  The public sector 
contribution to GDP will be reduced through pr ivatization and through the improvements due to 
efficiencies of the government's public administra tion program through a reduction in the number of 
employees in the public sector and increase of the salar ies of technically skilled staff in the public 
sector. Albania would  implement a well functioning market for agricultural land by maintaining the 
full productive capacity of the agricultural sector. 
 15. With regard to the foreign debt, Albania had ma intained its target.  At the end of 1998, the 
medium and long-term foreign debt, including the arr ears, is at 30 per cent of GDP.  In 1999, the 
service of foreign debt is forecasted to be about US$26 million, or 8.5 per cent of exports on goods 
and services and less than 1 per cent of GDP.  Albania has had very positive results in the payments of 
arrears.  Albania would  continue its efforts to im prove its relations with fo reign creditors.  Albania 
aims to terminate the bilateral agreements with Ru ssia and Italy for renegotiating the terms of its debt, 
and it has begun the negotiations with other creditors to  make payments of arrears at least in line with 
competitive conditions with those of the Paris Cl ub Convention.  Finally, the Albania aimed to 
improve the control over foreign debt and foreign aid, and to improve measures to utilize the sources 
of aid funding.   WT/ACC/SPEC/ALB/6/Rev.1 
 Page 17 
 
 
  Foreign Exchange and Payments  
 
16. The representative of Albania said that exchange control authority was vested in the Bank of 
Albania.  Foreign exchange for payments abroad could be obtained freely subject to documentation 
requirements (application, contract and invoice, an d repatriation). The repatriation requirements are 
imposed with regard to capital controls which appl y only to Albanian residents.  Albanian residents 
are not allowed to transfer capital abroad.  Payments for and proceeds from invisible transactions 
were not restricted.  Travellers could bring in  or take out any amount in domestic or foreign 
currencies.  Albania had Article XIV under the Article  of Agreement of the IMF.  There were controls 
on capital transactions.  The currency of Albania (Lek) floated independently and the current 
exchange rate, as of July 1999, was US$1=lek 136.  The Bank of Albania calculated the daily average 
exchange rates for the US dollar and 22 other cu rrencies.  Government and commercial bank rates 
were based on market rates.  In response to furt her questions the representative of Albania clarified 
that its legislation did not apply any restricti ons on foreign exchange related to any type of 
investment, the quantity of an investment, the amount  of foreign currency that can be exchanged, and 
the ability of foreign investors to repatriate their profits in foreign currencie s or in Lek which were 
earned through their investment (e.g., every type of  investment including deposits) and/or the initial 
capital invested.  There were no restrictions on the access to foreign exchange to an amount of foreign 
exchange attributable to a foreign enterprise. That is , there were no provisions in the Law that restrict 
foreign exchange such that imports are, in effect, restricted or limited.  
 17. In response to questions from a member of the Working Party concerning the controls and 
requirements on foreign exchange acquisition and use, the representative of Albania said that 
individuals, juridical and physical persons, who were Albanian or foreign, when entering the territory 
of the Republic of Albania, had to declare to th e Albanian Customs Authorities the value of foreign 
exchange in cash and traveler's checks equal to or more than 10,000 USD or  its equivalent in any 
other foreign currency(ies).  In such cases, individu als, juridical and physical persons, had to fill a WT/ACC/SPEC/ALB/6/Rev.1 
Page 18  
 
 declaration form which had to be stamped by the Albanian Customs Authorities.  This declaration 
provided information on the source and the scope of th e use of this foreign exchange.  She added that 
Albanian individuals were allowed to carry out of the territory of the Republic of Albania in cash or 
traveler's checks the amount of 10,000 USD or its  equivalent in any other foreign currency.  
Individual foreign citizens that visit or stay tempor arily in Albania could carry out of the territory of 
the Republic of Albania foreign exchange in cash or  traveler's checks an amount equal to the amount 
declared when they entered into Albania which coul d be verified by the declaration mentioned in the 
previous paragraph.  Albanian im porters and exporters w ho were physical or juridical persons were 
not allowed to carry out of the territory of th e Republic of Albania "in the customs border" the 
amounts in cash or traveler's checks equal to or more  than 25,000 USD or its equivalent in any other 
foreign currency(ies).  Individuals, juridical and phys ical persons, Albanian or foreign, could not carry 
out of the territory of the Republic of Albania more than 100,000 lek per person denominated in 
Albanian banknotes or coins in circulation.  The re presentative of Albania further added that there  
were controls on capital transactions which were imposed mainly on capital outflows, but only those 
made by residents.  There were no capital controls  on non-residents' transactions or on foreign 
investors in Albania. 
 
Investment Regime 
 18. The representative of Albania said that the Government promoted private sector investment, 
foreign and domestic, with a view to achieving di versification by gradually reducing dependence on 
agriculture as the dominant source of income by promoting the development of manufacturing,  fisheries and tourism and other services.  Other investment objectives included job creation for the 
expanding local workforce, gaining access to fo reign markets through foreign private-sector 
marketing channels,  and fo reign equity participation in large, cap ital-intensive projects.  Repatriation 
of capital and profits was allowed freely.  In r esponse to questions concerning the application of 
national treatment and most-favoured-nation treatment to  foreign direct investment, he added that the  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 19 
 
 
 Law No. 7764 "On Foreign Investment" provided equita ble and fair treatment to foreign investors. 
Except the right to buy agricultural land which wa s provided only to Alba nian nationals, national 
treatment and most-favoured-nation treatment were acco rded to foreign direct investment. Foreigners 
could in certain conditions lease agricultural land up to  99 years, but they cannot buy agricultural land 
in Albania.  Article 8, (points 1 and 2) of Law No. 7764 "On Foreign Investment" provided for the right to impartial dispute settlement. According to this Article, foreign investors had the right to 
choose the domestic appeal procedures as well as international procedures. 
 19. The representative of Albania confirmed that acco rding to the new Law "On Income Taxes", No. 
8438, dated 28 December 1998, equal treatment is give n to all persons, being individuals or firms, in 
regard to their personal or company taxes, and that this applies to Albanians and foreigners in a non-
discriminatory manner
. 
 
State Ownership and Privatization 
 
20. Some members of the Working Party requested  details concerning progress in Albania's 
privatization programme and plans to retain Stat e ownership in enterprises or sectors.  Further 
questions addressed relations between the State and company management, the application of 
competition legislation to State-owned enterprises, enterprise transformation provisions in Albanian 
legislation and general or exclusiv e funds available for State-owned enterprises.  A member requested 
a report on enterprises remaining in Government ha nds, the nature of goods they consumed, exported 
or distributed; and a report on plans, as appropriate, to complete the privatization process.  A member 
of the Working Party asked for a clear statement from Albania on the right of competing firms to 
establish in the banking and telecommunications sectors.   To ensure full transparency, Albania should 
keep WTO Members informed about progress in pr ivatization, and provide periodic reports on 
developments in privatization a nd economic reform issues as relevant  to its obligations under the 
WTO. WT/ACC/SPEC/ALB/6/Rev.1 
Page 20  
 
  
21. In response the representative of Albania said th at the main objectives of privatization were: 
to provide a constant long-term economic development and the increase  of the economic efficiency, to 
increase market efficiency through promotion of co mpetition and further deregulation of this market, 
and to attract foreign private capital in the important sectors of Albanian economy. The privatization process had three stages: first stage – a preparator y stage, second stage – a promotional stage, third 
stage – a decision making period.  In this stage the People’s Assembly would take the decisions at the 
strategic level.  The Council of Ministers would a pprove the decisions resulting by the approved laws 
and would adopt the final decision on the privati sation.  The Ministry of Public Economy and 
Privatisation was the institution responsible for the economic policy of privati zation and would decide 
on inclusion of objects or companies in privatisati on programmes.  The National Privatisation Agency 
was the body responsible for implementation of the pr ocess of privatisation from the technical point 
of view.  22. She further noted that Article 7 of The Law “O n Privatization Strategy of Primary Important 
Sectors”, stated that the privatisation of the strategic sectors would be accomplished with the 
participation of strategic investors, to whom would be offered not less than 30 per cent of the shares. 
The privatization process of all strategic sector s opened to foreign capital participation.  With 
reference to privatisation methods and formulas of strategic sectors, the representative of Albania said 
that the strategic sectors of the economy would be transformed into commercial enterprises.  In the 
implementation of the privatization, three kinds of rights were transferred to the private sector:  the 
right of ownership, the right of exploitation and the right of development. The partial or total transfer 
of the ownership right was approved case by case by the Council of Ministers.  In determining the parts of shares to be held by the State by the stra tegic investor or by the investors and the possible 
limit for the participation of the vouchers.  The pa rts of shares to be held by the State would be 
specific for different sectors.  The State would ma intain certain control over the enterprise only 
regarding issues related to public and strategic interest  and not for daily operation.  For partial or total  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 21 
 
 
 transfer of the right for exploitation and deve lopment method, Albania applied to management 
contracts, leasing, etc., as a precondition transfor mation of State-owned enterprises into commercial 
companies.  The State would transfer the developm ent right for the exploitation of natural resources 
such as oil, gas, solid, minerals, hydro sources, etc.  In this method the mineral permission and 
concession contracts were applied, subject to resources that would offer specific forms and procedures.  
 
23. The strategic sectors privatised were banking, telecommunications, electro-energetic sector, 
oil and gas, mining sector, transport and water supply for population.  The State part of the Albanian 
banking sector was composed of three main banks: Rural Commercial Bank (RCB), National 
Commercial Bank (NCB) and Saving Bank (SB).  Th e sector of telecommunications included the 
activities of TELECOM State-owned enterprise, as well as of AMC Joint Stock Company.  The laws 
for this sector included:  the Law “On Telecomm unication in the Republic of Albania” and the Law 
on “Regulatory Entity of Telecommunications”.  Due to  the events in Kosovo, the privatising of AMC 
(Albanian Mobile Telecom) had been delayed.  Th e privatisation would be completed by the end of 
1999.  The privatisation procedures of Albtelecom would begin by the end of 1999.  The electro-
energetic system was composed of three main elem ents (production, transmission, distribution) and 
was represented by the Albanian Energy Corpor ation AEC (KESH), a joint stock company.  
“AlbPetrol” joint-stock company run the oil and g as activity.  It included the research-extraction, 
processing-marketing and special service branches.  AlbPetrol had been restructured and reorganized 
in four companies, each of them with special st atus, optimizing the number of the employees.  Two 
main entities exercised their activ ity in the mining sector: Albkrom and Albaker corporate and there 
were some other mines such as coal, iron-nickel, ni ckel-silicate, bauxite, etc.  Their activity was in 
conformity with the Law on Mining.  In order to develop this sector, it was of a special interest to 
apply the form of transferring rights of exploita tion and development rights, by using all possible 
forms to attract foreign capitals, such as self-financ ing projects as well as other concessionaire forms.  
Both, Albkrom and Albbaker companies were in the pro cess of restructuring.  Only air transport, ports WT/ACC/SPEC/ALB/6/Rev.1 
Page 22  
 
 and railways were considered as strategic sectors within the transport sector. Albtransport and Air 
Traffic National Agency (ATNA) were the main players.  These enterprises were involved in the 
reconstruction project of Rinas Airport.  The pr ivatisation process most pr obably would include the 
transfer of exploitation rights or development ri ghts.  There were 50 water enterprises exerting their 
activity in the sector of water supply of the Population.    
24. According to the Strategy of Privatisation, a programme had been compiled for preparing the 
privatisation of strategic sectors, in agreem ent with the World Bank and European Bank for 
Development and Reconstruction.  This agreemen t was supported financially by these institutions. 
There were five foreign trade State-owned enterp rises involved in the process of privatisation and 
transformation into commercial companies:  (i) En terprise of Agroeksport Tirane, (ii) Enterprise of 
Industrialimpeks Tirane, (iii) Enterprise of Arteksportimport Tirane, (iv) Enterprise of 
Makinaipmpeks Tirane, (v) Enterprise of Albkoopi Tirane.  They were divided into two groups, 
according to the form of privatisation: enterprises in  the direct privatization,  Makinaimpeks Tirane, 
and Albkoop Tirane and enterprises that will be tr ansformed into commercial societies: Agroexport 
Tirane, Industrialimpeks Tirane , and Artexport Tira ne.   The legal framework of privatisation had 
been improved by Amendment No. 8237 of the Law “On Transformation of the State Owned Enterprises into Commercial Companies” and the Decision of the Government No. 192 dated 20 March 1998 “On Estimation of the State Owned Pr operty to be Privatised and the Procedures of 
Selling”.   
 25. Concerning the right of competing firms to est ablish in the telecommunications and banking 
sectors, the representative of Albania noted that  it had achieved greater liberalization in the 
telecommunications sector.  In Albania data communication services, including internet access and 
VSAT networks, value-added services and paging ser vices were fully open to competition.  For those 
services a general license was needed.  The number of licenses granted was unlimited.  Independent rural telephone networks were already authorized  by law "On some Changes on the Law No.8083,  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 23 
 
 
 dated November 1996", dated Februa ry 1998. To provide this kind of service, a license was needed. 
The number of licenses that would be limited to service providers was unlimited.  The number of 
terrestrial mobile telephony operators was defined by a decision of the Council of Ministers No. 288, 
dated 18/06/1999.  Licensing procedures for a second mobile operator would start at the same time 
with opening of the privatization tender.  Individua l licensing would be done through an international 
tender.  Urban, long distance a nd international telephony services provided over fixed network would 
be open to competition by 2003. 
 26. Some strategic agribusiness enterp rises remained unprivatised, i.e. some of the enterprises of 
the water supply system, the enterprise of the seeds and agriculture inputs, the scientific development 
institutions related to the agricultural system. A bout 95 percent of all agricultural and food production 
is from the private sector.  In the framework of ec onomic reform for transformation of a centralised 
economy into a free market economy, the privatisation procedure of State-owned enterprises in the agriculture field had proceeded through three stag es.  The first stage (from November to December 
1992) had began the privatization of the agricultu ral land of 79 agricultural enterprises; the second 
stage (from April 1993 to the present) had involved the privatization of agricultural enterprises and 
assets; and the third stage (from October 1993 to the present) had involved the privatization of dairy complexes.  
27. Concerning the privatization of food enterprises the representative of Albania noted that they 
had undergone three stages: the first stage (from 1992 to April 1993) had involved the privatization of 
bakeries, dairy processors, factory lines for producing alcoholic drinks and othe r beverages, and other 
assets (1000 assets in total); the second stage (from May 1993 to February 1994) had involved the sale 
of 1,300 small and medium sized enterprises; a nd the third stage (from March 1994 to the present) 
had involved the privatizing of 6,000 objects.   
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 24  
 
 28. The representative of Albania confirmed that ther e were 80 enterprises and assets currently in 
the process of privatization.  For all 80 remaining enterprises and assets in the process of privatization 
all the necessary documents had been  prepared and submitted to the Na tional Agency of Privatization 
for sale through auctions.  The number of employees in these enterprises in June of 1999 had been only 250 persons.  After 1997, the legal framewo rk of privatization had been improved by 
Amendment No. 8237 of the Law on "Transformati on of State-owned Enterprises into Commercial 
Companies" and a Decision of the Council of Ministers, No. 192, dated 20 March 1998 "On 
Estimation of the State-owned Property to be Priva tized and the Procedures of Selling".  There were 
eight limited liability agribusiness food companies that  were involved in production of goods such as 
dairy, cigarettes, and wine.  It was foreseen that their consolidation they would be privatized.  In 
1998, five of these enterprises had been put forward for privatization but none of them were sold.  
Restructuring of these enterprises was presently on-going to improve the sale of these enterprises.  For 
non-privatized assets, a leasing arrangement was to be applied.  29. The total number of State enterprises covered by  the Central Agency for Restructuring and 
Privatization had been 341 and incl uded about 70,000 assets to a total value of 5 billion lek.  Only 
300 assets had remained (by the end of  June 1999) non privatised and it was foreseen that all of them 
would be privatised within 1999.  According to th e Law “On Privatisation of Commercial Enterprises 
Which Function in Non-Strategic Sectors” the priv atisation of these enterprises would be made by 
auctions which will be organized by the National Agency of Privatisation or by tender open to 
foreigners. The 300 assets were in rural areas and include mostly stores and warehouses all of which 
are semi-destroyed and/or abandoned.  There was no  economic activity performed with these assets.  
The total number of the subjects with State-owned capitals was 469.  They were divided according to 
the type of entity as follows: State enterprise fo r sales of assets 255, State enterprises under the 
procedure of transformation 67, Companies with 100  per cent State capitals 29, Companies with State 
capital less than 100 per cent 15, and Joint vent ure companies 103.  In 1998, the procedure of 
transformation and privatisation had started w ith 332 objects and up to now 194 objects were  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 25 
 
 
 privatised.   The procedures of privatization of  State enterprises that represent 297 objects would 
continue during 1999.  Privatisation was an ongoing  process and Albania would continue to provide 
new data in the future.  In response to further questions, the representative of Albania provided the 
following tables detailing the current status of the privatization programme.  
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 26  
 
  
 
Table A.  State-Owned Enterprises, by Sector, 1991 and 1998* 
Number of Enterprises 
Left to be Privatized  
1991** 1998 Deadline for privatization 
or expected completion 
Service and trade 623 48 End of 1999 
Agriculture 365 93 End of 1999 
Food processing 292 41 Second half of 1999 
Construction and construction ma terials 247 31 Second half of 1999 
Transportation 142 56 After 2000 
Miscellaneous (pharmaceuticals, e ducation) 107 49 Second half of 1999 
Wood and paper 98 29 Second half of 1999 
Handicraft production 89 10 Second half of 1999 
Mechanic industry 85 31 Second half of 1999 
Textiles and clothing 60 23 Second half of 1999 
Tourism 44 1 Second half of 1999 
Typography 29 4 Second half of 1999 
Chemical and plastics industry 28 20 Second half of 1999 
Metallurgic industry 14 5 Second half of 1999 
Leather industry 12 4 Second half of 1999 
Oil and gas 69 4 End of 2000 
Mineral industry 66 17 First half of 1999 
Energy 64 4 End of 2000 
Telecommunications 2 2 End of 1999 
Total 2,436 472   WT/ACC/SPEC/ALB/6/Rev.1 
 Page 27 
 
 
 Notes: 
* Data are not available for a year-by-year presentation. ** The data in 1991 have been aggregated in such a manner that they are consistent with those from 
1998.  For example, the postal enterprise for e ach region was counted as a separate state-owned 
enterprise in 1991; however, for the purposes of pr ivatization, the postal enterprise has been 
converted into one in the 1998 data. 
1. This table does not include a few service enterp rises and firms owned by the Ministry of Defense 
which produce military equipment.  These are not subject to privatisation. 2. Some of the enterprises have been entirely rec onstructed and now belong to  the strategic sector. 
3. The privatization of the strategic sector s has not started yet and shall be performed. 
4. From the above tabled enterprises, about 40 non- strategic, small enterprises are excluded from the 
process of privatization in compliance with the request  for order, health and other social enterprises.  
These provide unique state services and are not involved in commercial activities. 
  WT/ACC/SPEC/ALB/6/Rev.1 
Page 28  
 
  
 
Table B.  Production of Goods and Services by State-Owned Enterprises, by Industry 
 (Million Leke) 
 1992 1993 1994 1995 1996 1997 1998 
Production of Goods  14,852.9 21,268.2 20, 693.8 25,728.7 27,864.3 24,112.3 24,142.8
Oil: Albpetroli 5,402.2 7,933.8 9,154.6 11,093.6 9,873.5 9,611.0 10,886.9
Electricity: KESH 2,116.9 2,870.5 2,885.1 4,433.3 11,231.0 8,648.1 7,753.1
Mining: 3,452.6 4,662.6 4,286.1 6,888.6 4,599.7 3,663.1 3,293.4
    Chromium: 
Albchromium 1,578.3 2,377.3 2,547.2 4,761.7 3,286.6 3,434.1 2,854.5
    Copper: Albcopper 1,342.8 1,660.4 1,199.4 1,642.6 972.4 112.9 296.7
    Coal 531.5 624.9 539.5 484.3 340.7 116.1 142.2
Other industries 3,881.2 5,801.3 4,368.0 3,313.2 2,160.1 2,190.1 2,209.4
    Metallurgy 342.8 685.8 858.2 974.5 1,079.2 1,111.9 1,119.3
    Mechanics 513.2 811.5 837.0 587.0 82.6 66.3 80.5
    Polygraphs 164.9 345.9 321.9 298.3 57.0 77.7 184.9
    Chemicals, glass, 
porcelain, rubber 645.1 1,085.4 820.0 495.4 407.3 320.7 207.6
    Textiles and clothes 1,390.1 1,739.0 758.7 303.5 297.8 301.5 315.3
    Leather and shoes   350.6 85.5 225.5 300.5 290.4
    Wood and paper 
products 521.2 811.3 280.0 465.2 10.7 11.5 11.4
    Arts and crafts 303.9 322.4 141.6 103.8   
Production of Services 77.9 2,216.4 2,632.0 3,294.1 5,038.2 6,331.4 6,213.9
Postal enterprise 77.9 192.3 253.0 340.8 570.4 701.1 547.9
Telecommunications  2,024.1 2,379.0 2,953.3 4,192.8 4,932.3 4,661.1
Albanian Mobile 
(phone) Company     275.0 698.0 1,004.9
Gross Domestic Product 50697 125334 184393 229793 280998 341716 456766
  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 29 
 
 
  
 
Table C.  The Contribution to GDP by State-Owned Enterprises, by Industry 
 1992 1993 1994 1995 1996 1997 1998 
Contribution by Sector: Percentage Share of GDP 
Total Contribution in the 
Goods Sector 29.3 27.5 11.2 11.0 9.7 6.9 5.1
Oil: Albpetroli 10.7 6.3 5.0 4.8 3.5 2.8 2.4
Electricity: KESH 4.2 2.3 1.6 1.9 4.0 2.5 1.7
Total from mining 
industries: 6.8 3.7 2.3 3.0 1.6 1.1 0.7
      Chromium: 
Albchromium 3.1 1.9 1.4 2.1 1.2 1.0 0.6
      Copper: Albcopper 2.6 1.3 0.7 0.7 0.3 0.0 0.1
      Coal 1.0 0.5 0.3 0.2 0.1 0.0 0.0
Total of other industries 7.6 4.6 2.3 1.3 0.6 0.5 0.3
      Metallurgy 0.7 0.5 0.5 0.4 0.4 0.3 0.2
      Mechanics 1.0 0.6 0.5 0.3 0.0 0.0 0.0
      Polygraphs 0.3 0.3 0.2 0.1 0.0 0.0 0.0
      Chemicals, glass, 
porcelain, rubber 1.3 0.9 0.4 0.2 0.1 0.1 0.0
      Textiles and clothes 2.7 1.4 0.4 0.1 0.1 0.1 0.1
      Leather and shoes       
      Wood and paper 
products 1.0 0.6 0.2 0.2 0.0 0.0 0.0
      Arts and crafts 0.6 0.3 0.1 0.0 - - -
Contribution of Selected 
Services 
Postal enterprise 0.2 0.2 0.l 0.1 0.2 0.2 0.1
Telecommunications - 1.6 1.3 1.3 1.5 1.4 1.0
Albanian Mobile (phone) Company     0.1 0.2 0.2
 
30. The representative of Albania confirmed her countr y's readiness to ensure the transparency of 
its ongoing privatization programme and to keep  WTO Members informed of its progress in the WT/ACC/SPEC/ALB/6/Rev.1 
Page 30  
 
 reform of its transformi ng economic and trade regime.  She stated  that her Government would provide 
annual reports to WTO Members on developments in  its programme of privatization as long as the 
privatization programme would be in existence along the lines of that provided to the Working Party.  
She also stated that her  Government would provi de annual reports on other issues related to its 
economic reforms as releva nt to its obligations under the WTO.  The Working Party took note of 
these commitments. 
 Pricing Policies 
 
31. Some members of the Working Party requested information on the process of price 
liberalization in Albania and the extent of any re maining controls on prices for goods and services.  
Albania  was requested to provide a description of existing price controls;  list the products by HS 
tariff line with reference to the legal provisions und er which controls were applied; border charges 
that would increase import prices;  and the conditions under which the authority to control prices was to be exercised.  The representative of Albania said that price controls had been eliminated for goods.  
For pharmaceutical products (medicine), the governme nt set a reference price for each of the 278 
pharmaceutical products listed y the INN.  The refe rence price for each medicine was computed as 
follows:  reference price = the lowest CIF import pric e + a wholesale margin of 12% + a retail margin 
of 27%).  The reference price w as the price upon which reimbursement to the retailer was based.  The 
consumer paid a co-payment, which was a specified percentage of the reference price, and the State 
Health Care Insurance Institute paid the remainde r of the payment.  The reimbursement list and the 
lowest import price was published once a year (prior to  the end of the first quarter of the year) stating 
the percentage of the reference price the consumer w as required to pay.  This list was disclosed to the 
consumer at all retail outlets.  The reference pric e and reimbursement scheme was based on the Law 
on "Health Insurance", Number 7870, dated 13.10. 1994.  For medicines which had a higher price 
relative to the reference price, the consumer wa s required to pay the additional expense over the 
reference price.  Retail prices of these medicines on the INN list were not directly affected.  The  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 31 
 
 
 category of drugs which were subject to the reference price was as follows: acidum ascorbicum; 
acidum valproicum; aluminii hydroxydum; ami nophyllinum; amoxicillinum; ampicillinum; aqua 
bidestillata; atropini sulfas; beclometasonum ; betamethasonum; calcii folinas; captoprilum; 
carbamazepinum; chlorambusilum; chloramphe nicolum; chlorpromazinum; clonazepamum; 
desmopressinum; diazepamum; erythromycinum; fluphenazinum; furosemidum; gentalmuicinum; haloperidolum; hydrocortisonum; hydroxocobalaminum; ibuprofenum; indometacinum; insullinum; 
isoniazidum; isosorbidi dinitras; levodopum + benserazidum; levothyroxinum natricum; 
medroxyprogesteronum; melphalanum; metamizolum;  meoclopramidum; metronidazolum; morphini 
hydrochloridum; nystatinum ; papaverini; paraceta molum; phenobarbitalum; 
phenoxymethylpenicillinum; phytomenadionum; p ilocarpini hydrochloridum; prednisolonum; 
pyridoxinum; rifampicinum; salbutamolum; sulfam ethoxazolum + trimethoprimum; testosteronum; 
thiaminum; tetracyclinum; thioridazinum; timololu m; trihexyphenidylum; and verapamilum.  The co-
payment by the State on these drugs ranged from 38 per cent to 99 per cent of the cost of the drugs.  The representative of Albania provided the Working Pa rty with a complete listing of products subject 
to price controls, including, where appropria te, HS numbers, in document WT/ACC/ALB/25. 
 
32. Concerning price controls on the services sector, the representative of Albania also noted that 
electricity, water, and transport services were subject  to price controls.  Full details of the price 
controls applied were provided to the Working Pa rty in document WT/ACC/ALB/25.  The pricing of 
electrical power was controlled.  Rates were set according to different categories as follows:  (i) 
residential households, (ii) main sectors of the economy, (iii) other producer entities, (iv) services sector providers and (v) wholesale rate for state in stitutions.  The tariffs on drinkable water were 
applied by the water supply stations according to diff erent types of users of water.  The rates are set 
according to a similar scheme.  Public transportation rates were set for the following modes of internal 
transport: Railroad transportation:  Rail cargo rates ar e liberalized.  On bus transportation:  urban and 
inter-urban passengers rates were set by the government.  Other modes of transportation had 
liberalized rates. For price control on telecommuni cations services, the following applies. Operators WT/ACC/SPEC/ALB/6/Rev.1 
Page 32  
 
 providing services under monopoly conditions  will be subject to tariff regulation based on a price cap 
mechanism.  The price cap ensures that the pr ice for basic telephone ser vices remains affordable 
while being gradually adjusted to reflect more accu rately costs of provision.  For Albtelecom (the 
operator defined as with relevant market power), the price cap will apply to all elements of basic 
telephones services.  The price for communications services other than basic telephone services are not subject to price control. 
 
33. In response to further questions, the representative of Albania stated that Albania did not have 
any other legal authority for the application of price controls, and does not contemplate to use such controls in the future.  When th e electricity sector and water works are privatized, price controls 
would be lifted.  Inter-urban and urban transportatio n will be liberalized as the standard of living of 
the population improves. 
 34. The representative of Albania confirmed that prices for goods and services in Albania, other 
than for the items listed in paragraphs 31-33 above and in document WT/ACC/ALB/25 were not 
subject to any price controls or reference prices. She confirmed that Albani a would apply its current 
price regulation system and any other state-mandated prices or price controls applied from the date of 
accession in a WTO-consistent fashion, and would take account of the interests of exporting WTO 
members as provided for in Article III.9 of the GA TT 1994.  Albania would publish the list of goods 
and services subject to State pricing or price controls  in its Official Journal,  including any changes in 
the list provided in WT/ACC/ALB/25 of current requir ements in place.  The Wo rking Party took note 
of these commitments.  
Competition Policy  
35. Some members of the Working Party requested information on Albania's competition policy, 
including the agreements restricting competition a nd whether and in which form reorganisation plans  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 33 
 
 
 provided for in Chapter III of Law No. 8017 "For Bankruptcy Procedures" involved, directly or 
indirectly, any financial support from the State.  In  response, the representative of Albania said that 
the reorganization plans provided for in Chapter III of the Law  for Bankruptcy Procedures did not 
involve any direct or indirect financial support from  the State.  Additional competition legislation was 
under preparation. 
 FRAME WORK FOR WORKING AND ENFORCING POLICIES 
 Power of the executive, legislative and judicial branches of government  
36. The representative of Albania said that accord ing to Law No. 8417, dated 21 October 1998 
“On the approval of the Constitution of the Re public of Albania” and Articles 121-123 of the 
"Constitution of Albania", the accession of Albania to the WTO would be ratified by a special law in 
the Albanian Parliament.  The Council of Mi nisters Decision No. 492 dated 29 July 1998 had 
approved the setting up of the Albanian Secretariat for Co-ordination of Relations with the WTO and 
the Albanian Negotiators Group, which was com posed of the members of all ministries and 
institutions related to WTO issues.  Based on the Law No. 8371 dated 9 July 1998 “On Concluding of 
International Treaties and Agreements”, all agreem ents accepted by the Government of Republic of 
Albania , were approved in principle by the Council of Ministers, and the authority on discussions and 
signing was the competence of the Prime Minister.  The Council of Ministers Decision No. 749, dated 
27 November 1998, “Strategy on th e Third Round of Negotiations for the Accession of Albania to the 
WTO”, had approved the Albanian Offer on Goods a nd Services.  She further added that specific 
legislation required to fully implement WTO provisi ons was passed separately and would be in force 
by the time of accession.  The ratification of the special law would take place according to Articles 
121 and 122 of the Constitution, Chapter II "Inter national Agreement".  She further noted that 
ratification and denunciation of international agreem ents by the Republic of Albania was lawful if 
they have to do with (a) membership of the Republic of Albania in internationa l organizations (Article WT/ACC/SPEC/ALB/6/Rev.1 
Page 34  
 
 1212, 1/c) and (b) the undertaking of financial oblig ations by the Republic of Albania (Article 121, 
1/d).  According to Article 122 of the Constitu tion of Albania, Chapter II of "International 
Agreements", in the event of conflict between an in ternational agreement that has been ratified by law 
and any domestic Albanian law, the international ag reement prevailed to the extent of the conflict 
(Article 122/2), (Article 122/3).  She noted that accordingly it would not be necessary to repeal 
conflicting laws and regulations to ensure  enforcement of the WTO Agreement.   
 Division of authority between central and sub-central governments 
 
37. In response to questions concerning the sub-cen tral governments authority to enact measures 
covered by the WTO Agreements, and the authority of the Government to override decisions by sub-
central authorities that conflict with WTO provisions, the representative of Albania said that as part of 
the trading system, foreign trade policy was under the jurisdiction of the Ministry of Economic Co-operation and Trade, as well as of  all related ministries.  Implementation was carried out by the 
relevant ministries and institutions of the public sect or in Albania.  The Albanian Secretariat for 
Relations Coordination with the WTO, was th e structure responsible for supervising the 
implementation of all commitments resulting from the accession of Albania in the WTO, and exercising the rights derived by such membership.  The members of the Albanian Negotiators Group were responsible for fulfilling, within the minist ries structure, the implementation of the accession 
obligations.  She further added that Albania's s ub-central authorities could not enact measures on 
issues subject to WTO Agreements, e.g., taxes, fees, and price controls applied to imports, investment 
requirements, subsidies or any other.  Sub-central authorities could also not enact measures on issues 
subject to WTO Agreements.    
38. Concerning appeals from other types of administrativ e decision, a trader could appeal to the head 
of the administrative office.  If the appeal was uns uccessful, the trader could appeal to the General 
Director of the administrative body within the applicable Ministry. A third appeal at the  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 35 
 
 
 administrative level could be made o the Appellate Committee.  In add ition, the trader could go to the 
Court system described in the preceding paragraph. 
 
39. The representative of Albania confirmed that sub-central entities had no autonomous authority 
over issues of subsidies, taxation, trade policy or  any other measures covered by WTO provisions.  
She confirmed that the provisions of the WTO Agr eement, including the Albanian Protocol, would be 
applied uniformly throughout the customs territory of Albania and other territories under its control, 
including regions engaging in border trade or frontie r traffic, special economic zones, and other areas 
where special regimes for tariffs, taxes and regulations are established.  She also stated that the central 
authorities would eliminate or nullify measures taken by sub-central authorities in Albania that were 
inconsistent with WTO provisions  from the date of accession.  She further stated that if the 
Government of Albania was informed of a specifi c situation where WTO provisions were not being 
applied or where applied in a non-uniform manner,  central authorities would act to enforce WTO 
provisions without requiring affected parties to petition through the courts. The Working Party took 
note of these commitments. 
 Description of Judicial, Arbitral or Administrative Tribunals 
 
40. In response to further questions from memb ers of the Working Party concerning the 
administrative appeals process for customs and othe r issues covered by WTO provisions and the right 
of appeal to an independent tribunal, whether or not  judicial, by traders, the representative of Albania 
said that in Albania there were three levels of app eal within the judicial system.  The first level was 
composed of First Degree Courts,  which function in all districts of Albania.  These had relevant 
sections for different complaints (penal, civil, admi nistration, family section, etc.).  The second level, 
consists of the Appeals Court , with branches in 5 districts in Albania, having under their jurisdiction 
the relevant territory defined by the Law approved by Parliament. The third level, consisted of the 
appeal to the High  Court , with its centre in the capital of Albani a.  This Court was composed of three WT/ACC/SPEC/ALB/6/Rev.1 
Page 36  
 
 colleges:  Penal, Civil and Administrative, wh ich are responsible for reviewing and analysing 
complaints by relevant areas.  The Constitutional C ourt was the Head of the judicial system, which 
guaranteed the primacy of Constitution of Republic of  Albania, and was the final interpreter of and 
was subject only to the Constitution.  41. In response to further questions the representative of Albania stated that the Customs Code of 
the Republic of Albania, Law Number 8449, dated 27.01.1999, Articles 19, 20 and  289, set out the 
process by which an aggrieved party could appeal a d ecision of the Customs.  If a trader did not agree 
with a customs administrative decision, he or she c ould appeal to the regional Chief of the Customs 
Office.  A subsequent appeal could be made within  10 days from the day of notification to the General 
Directorate of Customs.  The Director General was required to take a decision within 20 days from 
the date the appeal was received.  In the event th e Director General of Customs does not reply within 
this term, the request shall be presumed to have been accepted.  According to Article 289, which 
relates to verification of customs valuations, if th e Director General rejected the appeal, the trader 
could take the appeal to the courts, pursuant to  the procedures set out in the Civil Code of the 
Republic of Albania and the Code of Civil Proce dures.  The complaint against an administrative 
decision was made to the Administrative Division of th e Factual Court.  Parties had the right to appeal 
the administrative decision of the Factual Court to th e Appeals Court.  Such an appeal was required to 
be reviewed by the Administrative Division of the C ourt of Appeals.  Finally, a final appeal could be 
made to the High Court.  Its decision was final.  
 
POLICIES AFFECTING TRADE IN GOODS 
Registration Requirements For Trading 
 
42. In response to questions the representative of Alba nia stated that there were no State-trading 
enterprises as defined by Article XVII of the GATT 1994, because previous monopoly on import and export activities enjoyed by certain enterprises had ended in 1991 with the passage of the Law on  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 37 
 
 
 State Enterprises.  From 1991 all enterprises in Al bania had acquired the right to import and export 
freely in accordance with the principles of a ma rket-based economy.  Amendments to the Law on 
State Enterprises after 1991 had transformed the rema ining State enterprises into commercial or share-
holding companies for privatisation and asked whether,  all enterprises, public or private, had the right 
to import or export and to purchase and sell goods on the international market without respect to 
origin.  She further added that in accordance w ith Law No. 7638, "On Commercial Companies" dated 
19 November 1992 following registration with the Court of First Instance and the local Tax Office, all 
enterprises could engage in international trade.   43. The representative of Albania confirmed that the former state foreign trade monopoly had 
been abolished and that no restrictions existed on the right of foreign and domestic individuals and 
enterprises to import and export goods within Albani a's customs territory, with the exception that the 
importation and exportation of goods under license coul d be undertaken only by registered firms, and 
with the exception of a requirement to register for the right to engage in a trading activity listed in 
document WT/ACC/ALB/35/Rev.1 - Memorandum  on Import Licensing and Prohibition on 
Importable Products. In her opinion, the requirement to  register for the right to engage in a trading 
activity was consistent with the WTO Agreement.  Th e requirement to register for the right to engage 
in a trading activity did not restrict foreign par ticipation as they applied equally to foreign and 
domestic businesses.   
 
44. The representative of Albania noted that all importers had to be registered with the Court of 
first degree to become a natural or juridical subject and with the proper Tax Office. After the individual or firm was established a nd registered with the Court, the Tax Office provided them with a 
Certificate of Exercising an Activity which was at  the same time an identification number for tax 
purposes.  If the following conditions held, i.e., when: 
a. the annual turnover was more than 5 million lek; and/or b. the individual or firm was going to be engaged in importing or exporting activities, WT/ACC/SPEC/ALB/6/Rev.1 
Page 38  
 
 then the Tax Office would provide them with a se cond identification number which is used only for 
VAT purposes.  If condition "b" was met, but not "a", then the individual or firm might choose to be 
taxed as a small business at a fixed amount or as a large business subject to the VAT and the profit 
tax.  When a natural and juridical subject regist ered with the Tax Office, that subject was then 
registered to engage in some trading activity(ies) , i.e., import, export, transport, wholesaling and/or 
other marketing activities. This applied to impor ted and domestic products, in exactly the same 
manner. The criteria for engaging in import and export  trade in the restricted sectors were consistent 
with generally applicable restrictions placed on tr ade in similarly domestically produced goods.  The 
availability to register for the right to engage in a trading activity was not restricted nor was the licensing applied to restrict imports, production,  wholesale or retail trade in any product.  
 
45. The representative of Albania further noted that  the request for registration to the Court of 
First Instance had to be directed by the responsible of ficers of the corporation or partnership.  The law 
defined some general requirements such as the obligati on to declare and register the type and terms of 
company's activity, the official tr ade name, the headquarters, the object  of the company, the amount of 
basic assets, the date of  its statutes.  Different types of companies, had some additional requirements, 
such as information on the composition of the compan y, shareholdings, the articles of association and 
the names of directors etc..  The requests for registration had to be accompanied, in the case of Limited Liability Companies and Public Companies, with the certificate of the depositor of the funds, 
which result from the reimbursement of the basic part of the assets, or from signing shares for cash 
contributions.  In cases when an activity was subject  to an official authorization, a copy of this 
authorization would be necessary for registration.  Th e company was registered when its statutes were  
in accordance with the law and when all documents required by the law had been completed. The law 
also provides that these provisions were equally appl ied to Albanian and foreign persons establishing 
a branch or a representative office in Albania. 
  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 39 
 
 
 46. The representative of Albania confirmed that from the date of accession Albania would 
ensure that its laws and regulations relating to trad e in goods and all fees, charges or taxes levied on 
such rights would be in full conformity with its WTO obligations, including Articles VIII:1XI:1 and 
III:2 and 4 of the GATT 1994 and that it would also implement such laws and regulations in full 
conformity with these obligations.  The Work ing Party took note of this commitment. 
 
Import Regulations 
Customs Tariff  
47. The representative of Albania presented an in itial offer for market access negotiations on 
goods in May 1997 and submitted a revised offer for market access negotiations on goods in January 
1999.  A number of members entered into mark et access negotiations with Albania.  The 
commitments agreed between Albania and members of the Working Party will be annexed to Part I of 
the Draft Protocol of  Accession of Albania which is  reproduced in the Annex to this Draft Report. 
 
Customs Duties 
 
48. In response to questions concerning the current status of "special duties" and Albania's Law 
No. 8163 (7 November 1996) exempting goods impor ted for investment from customs duties, the 
representative of Albania said that the Government of  Albania was committed to trade reform and to 
the maintenance of a liberal trade-regime. The ne w Law on Tariffs was approved by Parliament in 
March 1999, and came into force on 15 May 1999.  The steps taken were to reduce the average tariff 
rates over the medium term, through re ductions in the number of tariff rate scales from five to three.  
The aim of the changes was to create a simple a nd transparent tariff structure with relatively low 
maximum tariff lowered from 30 to 20 percent.  All customs tariffs were ad valorem ; there were no 
products on which Albania applied specific or combined duties.  WT/ACC/SPEC/ALB/6/Rev.1 
Page 40  
 
 Tariff Quotas  
 
49. In response to questions from members of th e Working Party the representative of Albania 
confirmed that Albania had no tariff quotas.  With the adoption of the Customs Code on 15 May 1999, all tariff exemptions were provided in Artic le 199 and explained in Article 477-560 of the 
Implementing Provisions of the Customs Code.  The Customs Code (Title VI, Chapter 1, Article 199, 
paragraphs 1, 2) outlined the conditions for all re lief from import duties.  Paragraph 3 of Article 199 
provided that relief from import duties could be perm itted if provided for in bilateral or multilateral 
agreements.   50. The representative of Albania confirmed that from the date of accession Albania would ensure 
that its laws and regulations relating to the right to trade in goods and all fees, charges or taxes levied 
on such rights would be in full conformity with its  WTO obligations.  The Working Party took note of 
this commitment. 
 Other duties and charges  
 
51. The representative of Albania confirmed that there are no other duties or charges on imports 
on goods other than normal customs duties and fees  and charges for services rendered.  Charges and 
fees applied for services rendered have nothing to do with the importation of goods and so Albania 
binds such charges at zero.  All other duties and ch arges were bound at zero.  She further stated that 
Albania would not list any other charges in its  Schedule of Concessions on Goods under Article 
II:1(b) or GATT 1994, binding such charges at "zero".  
52. The representative of Albania stated that any ot her duties or charges applied to imports other 
than normal customs duties and fees and charges fo r services rendered would be in accordance with 
WTO provisions from the date of accession.  She fu rther confirmed that Albania would not list any  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 41 
 
 
 other charges in its Goods Market Accession Sche dule under Article II:1(b) of the GATT 1994, and 
would bind such charges at "zero".  The Work ing Party took note of these commitments.   
 
Fees and Charges for Services Rendered  
53. In response to questions from members of th e Working Party the representative of Albania 
provided members of the Working Party with the following table listed the range of services and 
activities, including fees for harbour use and consular services.    
The levels of harbour charges in the Republic of Albania 
For each net ton 
of ships register Total for each ship  
The type of charges 
Charges in US Dollars 
1. Harbor charges on ships 
A  For ships that load and unload general goods B  For ships that load and unload liquid goods 
C  For freighters RO/RO and passenger freighters 
D  For sportive ships, yachts 
- up to 30 TRN - from 31 up to 70 TRN  
0.4 0.6 
0.35 
  
  
 
 
15 30 
2. Charge for the beacon 
- for ships up to 200 TRN - for ships from 201 up to 500 TRN - for ships above 501 TRN  
0.10  
 
20 50 
3. Charge on the formalities carried out by the health authorities, capiteniery and other authorities - for ships up to 200 TRN 
- for ships from 201 up to 500 TRN 
- for ships from 501 up to 2000 TRN - for ships from 2001 to 4000 TRN - for ships above 4001  
 
0.25 
100 
180 210 300  
4. The ships that load water for export in places outside the harbor, pay harbor charges total 300 WT/ACC/SPEC/ALB/6/Rev.1 
Page 42  
 
 The levels of harbour charges in the Republic of Albania 
US$ for each supply. 
5. Foreign ships pay the harbor charges on hard currency, whereas the juridical and natural persons 
registered in the Republic of Albania pay in hard  currency or Lek in the ratio with the income. 
6. Harbor charges are paid at the first entrance of  any Albanian harbor, independent of whether the 
ship will go for other commercial transactions in other Albanian harbors during the same cruise. 
7. Charges are not based on  an ad valorem basis. 
 
 
       ⋅  The following table lists th e charges for consular services, including those charges by its 
consulates overseas..    WT/ACC/SPEC/ALB/6/Rev.1 
 Page 43 
 
 
  
Charges for Consular Services 
Type of consular service charges Fee in $US or Leke 
 
1. Charges for issuing of visas and other travel documents 
 a. For issuing travel passports b. For issuing travel passports for diplomatic purposes c. Extension of the passport term by diplomatic groups 
d. For entrance concession 
e. Entrance concession issued by diplomatic groups f. Visa for foreigners g. Entrance in the territory of the Republic of Albania 
    for foreigners who do not a visa  
2000 lek 
100 $US
30 $US 
200 lek 
30 $US 
Reciprocity 
Reciprocity
 
2. Charges for issuing, verification and legalization of documents 
 a. Any type of certification issued by missions for Albanian citizens b. Any kind of certification issued by the missions for foreign citizens c. Any type of attestation issued by the missions for Albanian citizens 
d. Any type of attestation issued by missions for foreign citizens 
e. Verification of documents by missions f. Legalization of documents for Albanian citizens by the     Ministry of Foreign Affairs g. Legalization of documents by missions for Albanian citizens h. Legalization of documents for foreign citizens  
30 $US 
Reciprocity 
30 $US 
Reciprocity 
10 $US 
200 lek 
30 $US 
Reciprocity
 
3. Charges for issuing and drafting of other notary acts and translation of 
documents by the missions  a. Drafting of declarations, authorizations, wills, contracts,  
    guarantees and special proxies by missions 
b. Certification of duplicates and copies 
c. Translation of documents  
20 $US/page
20 $US/page
10 $US/page
 
Note: The term mission refers to diplomatic or c onsular missions outside the country.  The fee may 
be paid also in the local currency acco rding to the prevailing exchange rate. 
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 44  
 
 In response to requests for clarification of the information contained in the preceding tables, the 
representative of Albania stated that those fees were for services rendered.  
 
54. The representative of Albania stated that any du ties and charges other than ordinary customs 
duties and charges applied to imports after accessi on would be in accordance with the provisions of 
the WTO Agreement.  The representative of Alba nia also stated that, from the date of accession, 
Albania would not apply, introduce, or reintroduce customs or other fees for "services rendered" that 
were applied to imports on an ad valorem basis.  Fees applied for import processing or other purposes 
on imports would be applied in conf ormity with WTO obligations, in particular Articles VIII and X of 
the GATT 1994.  Information regarding the applicati on and level of such fees, revenues collected and 
their use, would be provided to WTO Members upon request.  The Working Party took note of these 
commitments.  
 
Application of internal taxes on imports  
Excise tax 
 
55. Some members of the Working Party refe rred to Law No. 7678 dated 3 March 1993 "On 
Excise Taxes in the Republic of Albania" revi sed by Law No. 8247 dated 2 October 1997 "On some 
changes to Law No. 7678" and to the new "Law on Excise Taxes".  They noted, however, that 
Albania's proposed excise tax amendments left di scriminatory rates in place for the following 
products:  tobacco and cigarettes, soft drinks, mi neral and carbonated water, alcoholic beverages and 
some petroleum by-products and that Albania had stat ed that it would equalise the level of excise tax 
on foreign and domestic goods.  They asked Albani a to submit a comprehensive report on the scope, 
level, and status of its current excise taxes, listi ng the products subject to these taxes by product and 
by HS number; to explain the method of excise tax calculation for each product; to explain the steps to bring the discriminatory excise taxes into conformity with GATT 1994 Article III prior to  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 45 
 
 
 accession, and the time table Albania had for taking su ch measures.  They also  asked for information 
on Albania's plans to eliminate the tax level di fferences among various dis tilled alcoholic beverages 
and cigarettes in conformity with th e requirements of GATT 1994 Article III. 
 56. In response the representative of Albania said th at Albania had eliminated the discrimination 
in excise tax rates between foreign and Albanian  products in January 1999, according the Law on 
“Excise Tax” No. 8348 dated 28 December 1998.  Sub-categories of excise taxes still existed; 
however, within the Government of Albania,  a professional commission with experts from the 
Ministry of Agriculture and the Ministry of Finance, was in the process of defining such 
subcategories.  Albania confirmed that there w as conformity with Article III of GATT 1994. The 
calculation of the excise tax based on the transactio n value plus customs duty was a simple way of 
calculation suggested by IMF, in order that the unification of excise taxes would not be accompanied 
by budgetary implications.  On the other hand, the calculation of excise tax for domestic products 
based on retail price without VAT and excise, was c onsidered as a relatively hard measure for those 
domestic industries, which were either degrading, or at the infant stage.  
 
57. In response to further questions the representative of Albania stated that the new excise rates 
were implemented by the Law on "Excise Taxes" , Number 8437, dated 28.12.1998 (effective on 1 
January 1999 - made available to members of the Working Party).  Draft legislation entitled "Some 
Changes to the Law Number 8437, dated 28.12.1998"  had passed the Council of Ministers and was 
before Parliament for its approval expected by th e end of June 1999.  The new rates proposed in the 
pending draft legislation were as follows:   WT/ACC/SPEC/ALB/6/Rev.1 
Page 46  
 
  
Albania's Proposed Excise Tax Rates at the Time of Accession 
Harmonized 
System Code Description of Item Rate of 
Excise (%) Tax per Unit 
Chapter 24 Tobacco and Manufactured Tobacco Substitutes  
24.03 Tobacco for consumption 60  
24.02 Cigarettes   11 lek/pack 
24.02.10.00 Cigars  2240 lek/kg 
Chapter 22 Beverages, Sprits and Vinegar 
22.03.00 Beer  50  
24.04 Wine 50  
 Wine with a value up to  300 lek/liter  50 lek/liter 
 Wine with a value more than 300 lek/liter  150 lek/liter 
22.08 Whiskeys, brandies, and similar di stilled alcohol, including Raki (grappa) 
 With a value up to 400 lek/liter  80 lek/liter 
 With a value more than 400 lek/liter  400 lek/liter 
22.09, 22.02 Non-alcoholic beverages 5  
22.01 Bottled natural mineral waters 5  
Chapter 9 Coffee, Tea, Mate, and Spices  
09.01 Coffee 20  
Chapter 27 Mineral Fuels, Mineral Oils  and Products of their Distillation 
27.10 Petroleum sub-products  
 Gasoline up to 89.9 octane 77  
 Gasoline more than 90.0 octane 90  
 Unleaded gasoline 90  
 Gasoil 50  
 Kerosene 80  
 Motor oil 50  
 Lubricating oils 50  
 Other oils 5  
 Other products such as bituminous oil, solvents, etc. 20   WT/ACC/SPEC/ALB/6/Rev.1 
 Page 47 
 
 
 Albania's Proposed Excise Tax Rates at the Time of Accession 
Harmonized 
System Code Description of Item Rate of 
Excise (%) Tax per Unit 
 All other petroleum sub-products* 90  
Chapter 40 Rubber and Articles Thereof 
40.11 New pneumatic tires of rubber  
 Of a kind used on motor cars (including station 
wagons)  4000 lek/tire 
 Of a kind used on buses and trucks  3000 lek/tire 
 Other  2000 lek/tire 
Chapter 33 Essential Oils and Resinoids; Pe rfumery, Cosmetic or Toilet Preparation 
33.03.00.10 Perfumes 50  
33.03.00.90 Deodorants 50  
Notes:*Liquid gas for household use is exempt from excise taxes. 
 
58. In response to statements from some members of the Working Party that the coverage of 
products could operate in a manner that would subject imported produc ts to higher rates of excise 
taxation than comparable domestic products, the representative of Albania stated that through the 
proposed changes in the law, Albania consider ed that it had taken into account WTO and GATT 
principles related to discrimination in the appli cation of differential excise tax rates based on 
distinctions within the product groupings.  It was now evident that Albania had included Raki, its 
national spirit, in the alcoholic beverage group a nd it was listed as separate.  This was a technical 
improvement in the law.  For cigarettes, by including all types in one category, Albania had also complied with WTO and GATT 1994 principles.  
59. The representative of Albania stated that from the time of accession, Albania would apply l 
domestic excise taxes in strict compliance with Article III of the GATT 1994.  The Working Party took note of this commitment  WT/ACC/SPEC/ALB/6/Rev.1 
Page 48  
 
  
Value-added tax 
 60. With reference to the Law No. 7928 on Value Added Tax, some members noted that Article 
26 provides that the taxable value of imported go ods included tariffs, taxes and duties payable upon 
importation, and asked Albania to provide informati on as to what was included in the taxable value of 
domestically produced goods in respect of value-adde d tax and to confirm that there was no difference 
of treatment.  In response, the representatives of Albania said that the Law on Value Added Tax was 
in compliance with GATT 1994 and the WTO Agreement.   According to Article 28 of the Law, there 
was no discrimination between imported and domestic  goods and services.  This Article was similar 
to Article 11:A(2.a), of Title VIII of Direc tive VI of the European Communities, which was 
compatible with Article III of GATT 1994.  Based on the mentioned above laws and articles, Albania 
confirmed that there was no difference in the treatment of imports and domestic goods and services.    61. In response to further questions the representa tive of Albania stated that the VAT was the 
final tax applied to imports. It was a broad b ase tax which was applied on all sources of goods and 
services.  It was a single tax rate, 20 percent, impos ed upon all goods and ser vices.  There were very 
few exemptions such as the Bank of Albania, Alba nian Post, Humanitarian organizations, diplomatic 
corps, financial services, and the import and sale of drugs and medicines.  The VAT was now 
computed as follows: 
VAT on imports = [(good's value + customs ta riff)*(excise rate)] * % of the VAT. 
 62. She also confirmed that the value taxed by the VAT of locally produced goods included the 
value of goods plus any other obligations such as ta xes, tariffs, etc. (established by law) with the 
exception of the VAT, which was applied on the taxed value of the good.  
  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 49 
 
 
 63. The representative of Albania stated that from the time of accession, Albania would apply 
VAT in strict compliance with Ar ticle III of the GATT 1994.  The Working Party took note of this 
commitment.  
Quantitative Import Restrictions Including Prohibitions, Quotas and Licensing Systems 
 
64. Some members of the Working Party said that th e list of prohibited imports of Albania made 
it clear that Albania operated an import licensing regime to address concerns related to threats from imports to plant, animal and human health and safety, even though Albania had stated that it had abolished all import licence requirements along with  quantitative restrictions.  These members asked 
Albania to indicate how the legislative regime for granting import permits and licences met the 
requirements of the WTO Agreement on Import Licensing, and Albania's plans for enacting 
provisions in law or regulation.  65. Some members of the Working Party noted that the Memorandum on Import Licensing and 
Prohibition on Importable Products (included as A ppendix II to this Draft Report) described the 
licensing system and the procedures necessary to obtain a licence, together with Albania's justifications for the restrictions.  Some member s noted the requirement that imported medicines and 
drugs must have an import license, and requested th at Albania clarify whether these were automatic or 
non-automatic licences, the time-frame within which they must be granted, the criteria that the 
imported medicines and drugs must meet to qualify for the licence, and whether Albania had a similar 
registration and licensing system in place for the sa les of domestic production of similar articles.  
Those members also requested similar information in  relation to the licensing regime for pesticides, 
seeds and seedlings, the conditions to be met in or der for seeds to be imported, on what basis  
importation  would not be allowed, why the European Communities had special treatment, the status  
for varieties originating in Asia and North America,  and for new varieties of seeds and seedlings.  In 
their view, this process appeared to be incons istent with GATT 1994 Article I since it afforded WT/ACC/SPEC/ALB/6/Rev.1 
Page 50  
 
 preferential treatment for the importation of seed s and seedlings from the European Communities and 
discriminated against products from other origins.  It also appeared to be inconsistent with GATT 
1994 Article XI by effectively imposing a ban on seed s and seedlings not listed in the catalogue.  In 
their view, this process constituted a form of non-au tomatic licensing as described in Article 3 of the 
Agreement on Import Licensing Proce dures.  Those members also requested that Albania establish a 
transparent licensing system that identified the produ cts covered, the reasons for restrictions and the 
criteria for obtaining an import licen ce.  Lacking justification consiste nt with the requirements of the 
SPS Agreement, such as conducting an appropriate  risk assessment, dem onstrating scientific 
evidence, and ensuring that measures are applied in a non-discriminatory manner,  Albania's restrictions or requirements on seeds and seedlings were not justified.  Albania was also asked 
whether the licensing procedures for imports and expo rts of live animals and for imports of seeds and 
seedlings were statistical or restrictive and if there were any quantitative criteria; if  permission was 
denied how could applicants appeal the decision et c.  Finally, Albania was asked to provide an 
exhaustive list of products that are submitted upon im portation to quantitative restrictions, licensing or 
special authorisation requirements, or special technical requirements. 
 
66. In response the representative of Albania submitted a Memorandum on Restrictions and 
Prohibitions for Importable Products (WT/ACC/AL B/35/Rev.1) which listed the products requiring 
import licensing, together with the respective justif ications and the process to obtain licences.  These 
products included arms and munitions (and parts or accessories thereof); explosives, pyrotechnic 
products, matches, pyrophoric alloys; nuclear mate rials; non-dangerous waste; narcotic drugs and 
psychotropic substances; pharmaceutical products ; seeds and seedlings; pesticides; live animals and 
livestock products; fish and seafood products; eggs; woo l; and leather.  The registration process (and 
the right to engage in some trading activity) w ith the Tax Office was a one-time process.  For those 
items listed above, licensing was required each time one imported (rather than multiple imports during 
the course of a specified period, e.g., one year).   These cases applied only to livestock and livestock 
products; pesticides; and fish a nd seafood products.  The tables therein also listed prohibitions on  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 51 
 
 
 importable products. The items concerned included  dangerous waste, poi sons, narcotic drugs, 
psychotropic substances, certain animal products, seeds  and seedlings etc.  She reconfirmed that there 
were no quotas on imports of live animals, seeds and medicines/drugs and added that there were no 
non-tariff measures other than those measures descr ibed in the Memorandum on import licensing and 
prohibitions on importable products.  
67. The representative of Albania confirmed that, after accession, Albania would have recourse to 
quantitative import restrictions only in situations pe rmitted by the WTO Agreement, and in particular, 
from the date of accession, Albania would no t introduce, re-introduce or apply quantitative 
restrictions on imports, or other non-tariff measur es such as licensing, quotas, prohibitions, bans and 
other restrictions having equivalent effect that c ould not be justified under the provisions of the WTO 
Agreement.  If balance-of-payment measures were  ever necessary in the future, Albania would 
impose them in a manner consistent with the rele vant WTO provisions, including Article XII of the 
GATT 1994 and the Understanding on Balance-of-Payments Provisions of the GATT 1994.  The Working Party took note of these commitments. 
 Customs Valuation 
 
68. Some members of the Working Party asked Albania to give a status report on the efforts to 
bring the customs valuation regime into line w ith the WTO Agreement on the Implementation of 
Article VII of the GATT 1994, in particular, to list al l relevant legislation and regulations in place, to 
indicate when minimum import prices were fully abolished and replaced by use of the transaction 
value and the hierarchy of alternative valuation meth ods listed in the Agreement, and to confirm that 
the seven prohibited valuation methods provided for in  Article 7 of the Agreem ent had been abolished 
in Albania's customs valuation regime.  In respon se the representative of Albania said that according 
to the Law on Customs Code of the Republic of  Albania, No.8449, dated 27 January 1999, the 
practice of minimum pricing had ceased.  In Chapte r 3, Article 33-40 customs valuation was defined WT/ACC/SPEC/ALB/6/Rev.1 
Page 52  
 
 in compliance with WTO procedures.  A copy of th e Customs Code had been submitted to the WTO.  
An earlier "Customs Procedures Code" had been repl aced by a Decision of the Council of Ministers, 
"Implementing Procedures of the Customs Code", No. 205, dated 13.04.1999.  A copy of the 
"Implementing Procedures of the Customs Code" w as made available to members of the Working 
Party.   
69. The representative of Albania noted that the a ppeals process for customs valuation decisions 
apply to Articles 19 and 20 of the Customs Code.  If a trader did not agree with a customs administrative decision, the trader could appeal to the Chief of the Customs Office in the Field.  A 
subsequent appeal could then be made within 10 days from the day of notification to the General 
Directorate of Customs.  The Director General was required to take a decision within 20 days from 
the date the appeal was received.  In the event that the Director General of Customs failed to take a 
decision, the request was presumed to have been acce pted.  According to Article 289, if the Director 
General rejected the appeal, the trader could appeal  to the Courts, subject to the usual procedures are 
based on the relevant articles of the Civil Code of the Republic of Albania and the relevant articles of 
the Code of Civil Procedures described earlier in this Report.  
 70. The representative of Albania further noted th at the provisions of the Agreement on the 
Customs Valuation had been fully enforced in Al bania from 15 May 1999 and were used to determine 
the value of imported goods when they cannot be de termined under Articles 34 or 35.  She added that 
Albania was committed applying the Interpretive Notes of the Customs Valuation Agreement in 
Annex 6 of the Implementing Provisions of the Custom s Code.  She noted also that provisions related 
to the determination of customs value of carrier  media for use in data processing equipment and 
bearing data or instructions were set out in Artic le 39 of the Customs Code and in Article 79 of the 
Implementing Provisions of the Customs Code, copies of which were also made available to members 
of the Working Party.    WT/ACC/SPEC/ALB/6/Rev.1 
 Page 53 
 
 
 71. The representative of Albania confirmed that, from the date of accession, Albania would 
comply with the WTO provisions concerning custom s valuation, including in addition to the 
Agreement on the Implementation of Article VII of  the GATT 1994, the Inte rpretive Notes to that 
Agreement, and the provisions for the Valuatio n of Carrier Media Bearing Software for Data 
Processing Equipment.  In accordance with these latter  provisions, only the cost of the carrier medium 
itself would be accounted for in the customs value (D ecision 4.1).  She added that, as an international 
agreement, the provisions of the WTO Agreement on the Implementation of Article VII of the GATT 
1994 would supersede domestic law upon accession.  The Working Party took note of these 
commitments.  
Rules of Origin 
 72. Some members of the Working Party requested in formation about the elaboration of rules of 
origin in Albania.  In response th e representative of Albania said that with regard to rules of origin, 
the Customs Code, Law no. 8449 of 27 January 1999,  Chapter 2, Article 29-32, described the 
procedures to define origin of imported and e xported products into and out of the Republic of 
Albania.  73. The representative of Albania further added that  the Implementing Provisions of the Customs 
Code dealing with customs valuation (Articles 54 -81); rules of origin for non-preferential trade 
(Articles 44-46 and Annex 3) ; and rules of origin for preferentia l trade (Articles 47-53 and Annex 4) 
had been enacted and were made availabl e to members of the Working Party.  
 74. Some members of the Working Party request ed information on how the implementing 
provisions incorporated, either for non-preferential or  preferential rules of origin, the requirements of 
Article 2(h) and Annex II, paragraph 3(d) respec tively of the Agreement on Rules of Origin, which 
require that the Customs provide an assessment of the origin of the import upon the request of an WT/ACC/SPEC/ALB/6/Rev.1 
Page 54  
 
 exporter, importer or any person with a justifiable cause.  Those members noted that those provisions 
also required that requests for such assessments be accepted befo re trade in the goods concerned 
begins and that their assessments be binding for three years.   
 75. The representative of Albania stated that Chap ter 2 of Title II of the Customs Code, as 
elaborated by the Implementing Provisions of that Code, established Albania's rules of origin, and she 
confirmed that from the date of accession Albania preferential and non-preferential rules of origin 
would comply fully with the WTO Agreement on Rules of Origin, and th at the requirements of 
Article 2(h) and Annex II, Paragra ph 3(d) of the Agreement, which require provision upon request of 
an assessment of the origin of the import and ou tline the terms under which it will be provided, would 
be established in Albania's legal framework prior to accessions, and in any event, from the date of 
accession the Customs would provide an assessment of the origin of the import upon the request of an 
exporter, importer or any person with a justifiabl e cause.  Any request for such an assessment would 
be accepted even before trade in the goods concer ned began.  Any such assessment would be binding 
for three years.  The Working Part y took note of this commitment. 
 Pre-Shipment Inspection 
 
76. With reference to pre-shipment inspection,  some members of the Working Party asked 
Albania to describe what services were provided, whether or not mandatory, how the Government of 
Albania contracted these services a nd disciplined these activities, the co st structure for traders making 
use of any mandated PSI services and whether Albani a was prepared to take responsibility for the 
activities of the PSI enterprises that operated in its name and to ensure that they observed WTO 
provisions.  In response the representative of Alba nia said that Albania did not currently use the 
services of any pre-shipment inspection firm.  Howe ver, she noted that the Law on Customs Code of 
the Republic of Albania, No. 8449, dated 27 Janua ry 1999, Parliament had added Article 25 that  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 55 
 
 
 permitted the Government of Albania to have such a service, if necessary.  She noted however, that 
Albania had no current intentions to use the services of a pre-shipment inspection firm.  
 
77. The representative of Albania stated that if Al bania in the future engaged the services of a 
pre-shipment inspection service provider Albania would ensure that the requirements of the 
Agreement on Preshipment Inspection were implem ented in full. . Albania would take full 
responsibility to ensure that such enterprises operati ng on its behalf complied with the provisions of 
WTO Agreements.  Decisions by such firms could be appealed by importers in the same way as 
administrative decisions taken by the Albanian go vernment.  Any pre-shipment inspection regime 
would be temporary and would only operate until such  time as the Albanian Customs authorities were 
able to carry out such functions.  The Wo rking Party took note of these commitments.   
 
Anti-Dumping, Countervailing Duties   
78. Some members of the Working Party asked for information on the status of Law No. 7609 "On 
Customs Tariffs" which provided for special cust oms duties, anti-dumping duties and countervailing 
duties and asked Albania to provide an update of  the legislation on anti-dumping and countervailing 
duties.  In response the representative of Albania said that the Law on Anti-Dumping was before the 
Parliament and was expected to be approved by  the end of March 1999.  Some members of the 
Working Party stated that they co nsidered that the Law on Anti-Dumping was not in conformity with 
the requirements of the WTO Agreement.  The re presentative of the Government of Albania also 
noted that work on the drafting of legislation on countervailing duties had been suspended.   79. The representative of Albania confirmed that Al bania would not apply any anti-dumping, or 
countervailing measures until it had notifie d and implemented appropriate laws  in conformity with the 
provisions of the WTO Agreements on the implem entation of Article VI, and on Subsidies and 
Countervailing Measures.  Albania would ensure th at any legislation concerning anti-dumping or WT/ACC/SPEC/ALB/6/Rev.1 
Page 56  
 
 countervailing duties was in full conformity with th e relevant WTO provisions , including Article VI 
of the GATT 1994 and the Agreements on the Impl ementation of Article VI and the Agreement on 
Subsidies and Countervailing Measures.  After such legislation was implemented, Albania would also 
apply any anti-dumping duties, countervailing duties and safeguards measures in full conformity with 
the relevant WTO provisions.  The Working Party took note of these commitments.   
 
Safeguard Regime  
 
80. Some members of the Working Party asked for information on any legislation concerning the 
imposition of safeguard measures.  In response the representative of Albania said that work on the 
drafting of legislation for safeguard  measures had been suspended.  
 
81. The representative of Albania confirmed that Al bania would not apply any safeguard measure 
until it had notified and impl emented appropriate laws  in conformity with the provisions of the WTO 
Agreements on Safeguards. Albania would ensure th at any legislation concerning safeguard measures 
was in full conformity with the relevant WTO provisions , including XIX of the GATT 1994 and the 
Agreements on Safeguards.  If such legislation w as implemented, Albania would also apply any anti-
dumping duties, countervailing duties and safeguards measures in full conformity with those same 
WTO provisions.  The Working Party took note of these commitments.   
 
Export Regulations  Customs tariff nomenclature, types of duties, etc.   
 
82. Some members of the Working Party asked whet her Albania had export taxes, requested the 
WTO justifications for maintaining export proh ibitions on wood and w ood products and on metal 
waste and scrap.  They asked Albania to confirm that there were quantitative export restrictions on  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 57 
 
 
 firewood, unprocessed wood, sawed wood and beams;  waste and scrap precious metals; waste and 
scrap iron, steel, nickel, lead, zinc, tin and copp er, waste and scrap aluminium (except for waste 
aluminium packaging, such as alum inium cans for soft drinks which had been imported); and ingots 
and to give a WTO-compatible justification for the restrictions or to indicate how Albania intended to 
amend these measures to bring them into conformi ty with WTO provisions.  The representative of 
Albania said that Albania had no export taxes.  As  described in the Memorandum on Export Licensing 
and Prohibitions on Exportable Products (WT/A CC/ALB/34/Rev.1), the export prohibitions on wood 
and wood products were re lated to the implementation of the Law on Forestry and the establishment 
of the responsible institutions for the forestry's  administration, control and services.  The export 
prohibitions on all kinds of metal waste and scrap  was aimed to prevent the exportation of these 
commodities before the privatization of all the indu strial enterprises was concluded.  Albania would 
eliminate export prohibitions at the time of accession.   The items subject to export licences were arms 
and ammunitions, explosives, pyrot echnic products, pyrophoric alloys, firearms, modern works of art 
etc.  The export prohibitions on raw hides, skin  and leather would be lifted in March 1999.  The 
export of processed and unprocessed wood had been fu lly liberalized.  For scrap of iron and steel, 
copper and copper articles and fish preparations, the export bans would be lifted at the end of 
September 1999.  The ban on the export of works of art and antiques would not be phased out in order 
to protect the cultural heritage and  integrity of the Republic. 
 
83. The representative of Albania later stated  that the few remaining quantitative export 
prohibitions covered hides, skins and leather; and waste and scrap of iron, steel, and copper.  The 
export prohibition on preparation of fish products, crustaceans, molluscs, etc. was due to the 
International Organization for Epizootics listing of  Albania on countries with diseases from List A.  
The ban was not a unilateral measure taken by the Government of Albania.  The same explanation 
applied to the prohibition related to the resi due and waste from prepared animal food.  
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 58  
 
 84. The representative of Albania confirmed that from the date of accession the following 
products would be subject to export licensing:  93.01 - 93.07 (arms and munitions, parts and 
accessories thereof); 36.01 - 36.06.90.90 (explosiv es, pyrotechic products, matches, pyrophoric 
alloys); 97.01 - 97.06 (modern works of arts).  The export licensing regime for the above-mentioned 
goods was in place for the following purposes, adhere nce to international commitments related to 
non-proliferation, mass destruction and production of  technologies thereof; to prevent trade of said 
products to hostile nations subjected to international bans; to protect the cultural integrity and heritage 
of the Republic.  Albania confirmed that at th e time of accession any remaining export control 
requirements in place would be fully consistent wi th WTO provisions, including those contained in 
Articles XI, XVII, XX and XXI of the GATT 1994.  Albania committed to lift the export bans on 
items listed in the document WT/ACC/ALB/34/Rev.1 at the end of September 1999.  A Decision of 
the Council of Ministers, No. … would ensure th at Albania respected this commitment.  The 
representative of Albania stated that from the date of accession export restrictions would only be imposed in conformity with the WTO Agreement.  The Working party took note of these commitments. 
 Export Subsidies 
 
85. Some members of the Working Party asked Albania to confirm that Albania had no export 
subsidies.  In response the representative of Albania said that Albania did not maintain export 
subsidies of any sort on industrial products or agricultural commodities.    86. The representative of Albania stated that from the date of accession Albania would not 
maintain subsidies including export subsidies which met the definition of a prohibited subsidy, within 
the meaning of Article 3 of the Agreement on Subsidies and Countervailing Measures and that it 
would not introduce such prohibited subsidies in the future.  The Working Party took note of this 
commitment.  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 59 
 
 
  
Internal Policies Affecting Trade in Goods   
Industrial policy, including subsidies  
87. The representative of Albania informed members of the Working Party that Albania did not 
administer any subsidies prohibited by the WTO Agreement.   
 88. The representative of Albania confirmed that  any subsidy programmes provided by the 
Government after accession would be administered in line with the Agreement on Subsidies and Countervailing Measures and that all necessary in formation on notifiable programmes would be 
notified to the Committee on Subsid ies and Countervailing Measures in accordance with Article 25 of 
the Agreement upon entry into force of Albania' s Protocol of Accession.  The Working Party took 
note of these commitments.  
 Technical Barriers to Trade 
 
89. Some members of the Working Party asked Al bania to provide an update on progress in 
implementing the TBT Agreement and a commitment that the Agreement would be fully implemented 
as from the date of Albania's accession to the WTO.   In response the representative of Albania said 
that the new Law on Standardisation had been passed by the Parliament, and would enter into force in 
March 1999.  In the new Law on Standardisation the de finitions of standards a nd technical regulations 
were those given in annex 1 of the TBT Agreement "Terms and their Definitions for the Purpose of 
this Agreement".  All standards would be volunt ary and technical regulations mandatory.  In 
accordance with the Albanian Constitu tion, when a treaty or interna tional agreement such as the WTO 
Agreement is ratified by the Parliament of Albania,  the provisions of the international agreement (i.e., 
the WTO Agreement) will supercede the Law on Standa rdization.  This implied that the Albanian WT/ACC/SPEC/ALB/6/Rev.1 
Page 60  
 
 standards would become voluntary.  Only up unt il the time of accession can ministries or other 
regulatory bodies, during the drafting of technical  regulations, declare mandatory those standards 
which deal with health and safety.  Standards woul d be applied to foreigners and local producers in 
compliance with national treatment.  Technical regula tions would be used to protect human, animal or 
plant life or health or environment without being more trade-distorting than necessary.    WT/ACC/SPEC/ALB/6/Rev.1 
 Page 61 
 
 
  
90. The representative of Albania stated that the wo rk of the General Directory of Standardisation 
(GDS) would be based on the adoption of internatio nal (ISO) and regional (EN) standards.  In 1990, 
Albania had not adopted any foreign standards;  in  1998 the Republic of Albania had adopted 52 ISO, 
4 IEC, 147 EN, and 62 standards from other States.  The goal was to reduce the creation of national standards and to increase the adoption of internatio nal standards.  Accreditation would be based on 
European standards series 45,000.  For certificati on, however, foreign certification bodies could carry 
out certification activities in Albania.  The GDS was a full member in ISO and an affiliate member in CEN.  In the future, the GDS would be a member  of IEC and CENELEC.  In the preparation of 
standards, the emphasis was on product performance re quirements rather than on design or descriptive 
requirements.  The process of preparation of standards was open, transparent and free from 
commercial influence.  
 91. The representative of Albania noted that an Information Centre for Standards had been 
created in compliance with the TBT Agreement requirement of an enquiry point.  By an order of the 
Prime Minister of Albania, No. 36, dated 6 May. 1999, paragraph 7, the enquiry point for TBT and 
SPS was at the General Directorate for Standardization, addressed : Rr.”Mine Peza”, Nr.143/3, Tirana, Albania, Tel. + 355 42 47176, Tel. & Fax. + 355 42 26255, E-mail: dsc@icc.al.eu.org.  
Albania had notified the WTO Secretariat of this d ecision and provided all the relevant information.  
The Information & Sale Center of this Directorate would act as the enquiry point.  This point was thus 
already operational.   92. The representative of Albania added that the Code of Good Practice for Preparation, 
Adoption and Application of Standards had been transl ated into Albanian and would be adopted.  The 
GDS was preparing the Decree of the Albanian G overnment to assure that all remaining activities 
would be in compliance with TBT Agreement.  She added that accreditation would be a separate activity in the future and this was linked with th e starting of the accreditation of certification bodies, WT/ACC/SPEC/ALB/6/Rev.1 
Page 62  
 
 in addition to testing laboratories.   For separating these activities Albania would need about two years, 
depending on  economic developmen ts and  Albania's situation.  Standardisation was a separate 
activity from certification.  The standards process was open and every natural or juridical subject 
could participate in the technical committee for sta ndards, if interested.  Some foreign companies 
participated in the technical committee.  Draft standards were published and the comments period was 
from three to six months.  Regarding certificatio n, the market was open for other third party 
certification bodies.  The new Law on Standardisati on only charged the national standards body to 
carry out certification, but did not forbid other certification bodies from carrying out this activity in Albania.  The national standards body would b ecome independent from the Government when the 
economic operators in Albania were interested in supporting this body financially.  The goal of 
Albania was to adopt as many international and Eu ropean standards as possible and this process was 
well under way.  The national standards would be u sed only for some local products not subject to 
international trade.  Having only voluntary standa rds, these would not create a technical barrier to 
trade.  In Albania, the technical regulations woul d be established only by the national authority.  
Standards  would be issued by the national standards body in the fields of ISO/IEC or 
CEN/CENELEC and by the Albanian Office for Tele communications Regulation in the field of ITU 
or ETSI.  93. In response to requests for further updates on the progress towards compliance with the 
requirements of the Agreement on TBT, the represen tative of Albania stated that to ensure full 
compliance with the TBT Agreement, was preparing f our decisions of Government.  The first one is 
the Decisions which in practice will adopt Articles  2, 5, 6, 8 and 9, of the TBT Agreement.  Articles 3 
and 7 were not included because in Albania the tec hnical regulation were prepared by ministries or 
central public institutions and not by the local admini stration.  This draft was distributed to different 
ministries and approval of each of the Decisions was expected at the end of July.  The Decree, "Code 
of Good Practice for the Preparation, Adoption and Application of Standards" was approved by the 
Council of Ministers (No. 242, dated 28.05.1999) .  The Code would reflect Annex 3 of the TBT  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 63 
 
 
 Agreement.  The Decree, "Criteria and Competenci es Related to Standardization, Certification and 
Accreditation", mainly dealt with the three act ivities covered by the General Directorate of 
Standardization.  The draft was distributed to different ministries for comments and was expected to 
be approved  by the end of June.  The Decree, "On Exchange of Information on Standards and 
Technical Regulations", was prepared in draft form . This draft covered Articles 10.1, 10.1.1, 10.1.2, 
10.1.3. 10.1.4, 10.1.5, 10.1.6, 10.4, 10.7, 10.8, 10.9. 10.11, of the TBT Agreement.  The draft was 
distributed to different ministries for comments and wa s expected to be approve d by the end of June.  
The three remaining Decisions would be approved by  the end of July.  Each draft Decree was made 
available to members of the Working Party.   94. The representative of Albania stated that Al bania had provided for the "notification, 
publication, and other internal procedures", e.g., publication prior to enactment for public comment, 
that would implement the provisions of the TBT Ag reement.  Such provision was contained in the 
Decree "On Exchange of Information on Standard s and Technical Regulation".  Concerning the 
requirement that a decision to accept the results of conformity assessment  procedures be conducted 
by bodies in an exporting Member country; and relevant ministries will implement a non-
discriminatory and cost-based fee structure", the re presentative of Albania stated that those were 
included in the Decree of government which would implement Articles 2, 5, 6, 8 and 9 of the TBT 
Agreement.  Regarding self-declaration for regulat ed products Albania had included it in the Decree 
for Criteria and Competencies for Standardization, Ce rtification and Accreditation, chapter II, point 9. 
 95. The representative of Albania confirmed that Albania would apply all obligations under the 
WTO Agreement on Technical Barriers to Trade from the date of accession without recourse to any 
transition period.  The Working Pa rty took note of this commitment. 
 
Sanitary and Phytosanitary Measures (SPS ) 
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 64  
 
 96. Some members of the Working Party asked Alba nia to outline how the provisions of the WTO 
Agreement on Sanitary and Phytosanitary Measures we re implemented in Albanian Law.  In response 
the representative of Albania said that Albania ha d supplemented the documen tation on SPS, and had 
indicated that it was in compliance with WTO principles in the Memorandum on Conformity with SPS (document WT/ACC/ALB/31/Rev.1).  The Memo randum reviewed WTO compliance article by 
article as follows: 
 
 
Albanian Compliance Requirements under the WTO 
 
1.  Standstill: the introduction of new standards, animal 
health regulations and food safety regulations shall conform to SPS Agreement principles.  The current regulations include: 
 
"The Law on State Sanitary Inspectorate", Number 7643, dated 2.12.1992  
1.  Generally agreed principle in 
WTO accession negotiations.  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 65 
 
 
 Albanian Compliance Requirements under the WTO  
2.  Article I, Section 1 and 6, of the Law on State 
Sanitary Inspectorate states that the Ministry of Health serves as the information point for the WHO and related international organizations.  The Directory of Veterinary Service and Plant Protection in the Ministry of Agriculture and Food serves as the information point 
for questions related to animal and plant inspection, 
control, etc.    By Order of the Prime Minister, Number 36, dated 06.05.1999, (Paragraph 7) it is officially established 
that Albania will have one inquiry point for information 
on standards and technical regulations to be in compliance with SPS and TBT.    Directorate for Standardization Rr. "Mine Peza", Nr. 143/3 
Tirana, ALBANIA 
+ 355-42-47176 telephone + 355-42-26255 fax dsc@icc.al.eu.org e-mail  
2.  Article 7 and Annex B.3 
 Commitment:  The Directorate of Standardization, with 
its authority and responsibility to operate a single unit 
inquiry point, commits Albania to having a fully 
operational single unit inquiry point at the time of accession.  WT/ACC/SPEC/ALB/6/Rev.1 
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 Albanian Compliance Requirements under the WTO 
 
3.  Transparency: notification and access to 
documentation:  (A) The Directorate of Standards is the authority responsible for making notifications to the WTO and ensuring transparency obligations are met on an 
ongoing basis, Order of the Prime Minister, Number 
36, dated 06.05.1999, (as provided in Paragraph 7);  (B) there is nothing in the law at this time requiring publication of proposed measures at an early stage for 
comment; 
  
3.  Articles 7 and Annex B, Also 
G/SPS/7   (A) Annex B.5.(b) and Annex B.10  
 
  (B) Annex B.5(a)   
(C) there are no provisions in law or administrative procedure at this time requiring that copies of proposed measure be provided to WTO Members; and  (D) at this time there is no requirement in law or 
administrative procedure that specifies a reasonable 
period of time for comment from Members and the public, and establishment of a process to take comments into account without discrimination. 1(C) Annex B.5(c) 
   (D) Annex B.5(d) 
 
Commitment:  For points 3. (B), (C), and (D) Albania 
is committed to draft or am end legislation to be in 
conformity with SPS at the time of accession.  
 
4.  The Law on State Sanitary Inspectorate (Article I, 
Sections 5-8, and Article II) defines measures that apply only to protect human, animal an/or plant health.  All inspectors (chemical and physical laboratories, toxicological, bacteriological) operate according to this law and inspections are based on scientific criteria.  
4.  Article 2.2  WT/ACC/SPEC/ALB/6/Rev.1 
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 Albanian Compliance Requirements under the WTO  
5. The Law on State Sanitary Inspectorate (Article I, 
Sections 5-8, and Article II) defines measures that apply only to protect human, animal an/or plant health.  All inspectors (chemical and physical laboratories, toxicological, bacteriological) operate according to this law and inspections are based on scientific criteria.  
5.  Articles 2.2, 3.3 and 5.2 
  
 
6.  The Law on State Sanitary Inspectorate (Articles I-
III) provides for harmonization, i.e., will follow 
international standards, guidelines, and recommendations in establishing SPS measures.    
6.  Articles 3.1, 3.3 and 3.4 
 
  
 
7.  The State Sanitary Inspectorate (Articles I-II) 
provide for equivalence, i.e., recognizes different measures that achieve the same level of protection.  
7.   Article 4 
  
 
8.  The Law on State Sanitary Inspectorate (Articles I-
III) provides for risk assessment by developing 
scientific evidence and conducting risk assessments to ensure that measures are based on science and applied only to the extent necessary to protect human, animal, plant health.   
8.  Article 5.1, 5.2 and 5.3 
 
 
9.  The Law on State Sanitary Inspectorate (Article I) 
and the provides for consideration of regional 
conditions, i.e., measures that take into account the 
regional characteristics both of the areas from which products originate and the areas for which they are destined.  
9.  Article 6 and Annexes A.6 and 
A.7 
 
10. The Law on State Sanitary Inspectorate (Articles I-
II) provides for non-discrimination, i.e., measures do 
not arbitrarily or unjustifiably discriminate between 
different members or between domestic and foreign suppliers.  Sub-legal acts define how samples are taken, and the procedures of an examination and its duration.  The practices are transparent for all subjects that are under control.  
10.  Article 2.3, and Annex C.1(a) 
and (d) 
 
  WT/ACC/SPEC/ALB/6/Rev.1 
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 Albanian Compliance Requirements under the WTO 
 
11.  The Law on State Sanitary Inspectorate provides 
for the control, inspection and approval procedures, e.g., to ensure that pro cedures, including systems for 
approval of the use of additives or for establishing tolerances for contaminants in foods, beverages or feedstuffs comply with the Agreement.  
11.  Article 8 and Annex C 
 
97. In response to further questions the representativ e of Albania stated that the Ministry of 
Agriculture and Food and the Ministry of Hea lth are the authorities responsible for making 
notification and ensuring transparency obligations  regarding SPS measures to the Directorate of 
Standardization, and it is the Directorate of Sta ndardization which is the authority responsible to 
making the notifications to the WTO to ensure tran sparency obligations are met on an ongoing basis. 
The address, phone and fax numbers, and e-mail address appear in the table above. 
 
98. She further added that the amendment to th e Law on "State Sanitary Inspectorate" was 
currently being drafted and was expected to be s ubmitted to parliament at the end of July 1999 to 
ensure that publication of proposed measures at an early stage for comment was required, that copies 
of proposed measures would be provided to WT O Members by the time of accession and that a 
reasonable period of time for comments from Members and the public, and the establishment of a 
process to take comments into account without discr imination. Provision that specifies that the law 
will satisfy the WTO requirement for standstill.  Ch anges to the law would also be made so that 
Albania would be in compliance with the SPS Agreement at the time of accession.   
 
99. The representative of Albania confirmed that Albania would apply all obligations under the 
WTO Agreement on Sanitary and Phytosanitary Measu res from the date of accession without recourse 
to any transition period.  The Working Party took note of these commitments.  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 69 
 
 
  
Trade-Related  Investment Measures 
 
100. In response to questions concerning trade -related investment measures (TRIMs), the 
representative of Albania said that Albania did not maintain trade-related  investment measures (TRIMs).  The Albanian Investment Law, N0. 776 4 of 11 February 1993 was compatible with the 
national treatment requirements of the WTO.  She confirmed that there are no local content 
requirements imposed on foreign or domestic firms to purchase or use products of Albanian origin or from any Albanian source, nor did Albania require th at a firm's, foreign or domestic, purchases or use 
of imported products be limited to  an amount related to the volume or value of the local products it 
exports.  She noted that the commitments in the Memorandum on TRIMs (WT/ACC/ALB/30) apply 
in the case of Albanian firms as well.  She further added that Albania confirmed that there were no 
provisions that restricted imports, by foreign or Alba nian firms, to an amount related to the quantity or 
value of the product exported; that there were no export performance requirements of any sort for foreign or Albanian firms; and that there were no trade-balancing requirements in the Law, neither in 
its intention nor in practice, which apply in the case of a foreign or Albanian firm. 
 101. The representative of Albania stated that Albania would not maintain any measures 
inconsistent with the TRIMs Agreement and woul d apply the TRIMs Agreement from the date of 
accession without recourse to any transition period.  The Working Party took note of this 
commitment.  
State Trading Practices 
 102. Some members of the Working Party asked Alba nia to list the major State Owned Enterprises 
and the products covered,  whethe r Albania considered that any of the enterprises should be notified 
under Article XVII of the GATT 1994, or Article VIII of GATS, if these enterprises were subject to WT/ACC/SPEC/ALB/6/Rev.1 
Page 70  
 
 any form of Government control, including directives  in relation to their operation, if these enterprises 
were free to purchase and sell goods on the interna tional markets and to acquire imports from any 
origin, and whether the persons working for these enterprises were Government employees and to 
describe the role of agroexport in the trade and in ternal distribution of agricultural products in 
Albania.  Noting that important sectors of the Alba nian economy appeared to be dominated by sole 
enterprises, including: research with minerals – GJEOALBA corporation; chrome mining, processing 
and smelting – ALBKROM corpora tion; copper mining, smelting a nd production – ALBBAKER; and 
production of electric energy by hydro and thermal plants – the Albanian Electroenergetic Corporation (KESH), some members of the Working Pa rty asked Albania to provide the profile of the 
Albanian trading enterprise Arteksport-Import and similar profile reports for the following 
enterprises:  ALBPETROL, GJEOALBA, ALBKROM corporations, ALBBAKER and the Albanian 
Electroenergetic Corporation (KESH).  In their view these enterprises had an effective monopoly, 
granted by the licence, to dominate the level and di rection of imports and e xports of fuel and gas 
services.  Albania was requested to provide deta iled information on these enterprises in accordance 
with the requirements of the Questionnaire on State- trading.  A Member asked Albania to name the 
petroleum firms and the other state trading firms wh ich trade in products under license as state trading 
enterprises.  In its response, the representative of  Albania named SH.A. Armo which is 100 percent 
owned by the state, and SH.A. Petrolimpeks, which is 51 percent state-owned.  All other companies 
are private. 
 
103. In response the representative of Albania said that  Albania did not consider that any of the 
enterprises should be notified under Article XVII of  the GATT 1994 or Article VIII of GATS.  None 
of the enterprises listed were subject to any form of Government control, including directives in 
relation to their operation.  All the enterp rises were free to purchase and sell goods on the 
international markets and to acquire imports from a ny origin.  78 per cent of exports were generated 
by privately owned enterprises.  The persons working for these enterprises were considered 
Government employees only because the enterprises were State-owned but were paid from the  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 71 
 
 
 company and not the state budget.  Agroexport in th e trade and internal distribution of agricultural 
products did not have any advantage or privileges over the State-trading enterprises.  The operations 
of Electro Energetic Corporation (KESH), AL BKROM, ALBBAKER, ALPETROL corporation were 
based on the Law on "Commercial Enterprises", No . 7638 dated 19 Novemb er 1992, which provided 
the same conditions and rules for public and private enterprises.  Based on that Law, there were no 
exclusive rights for these enterprises.  Commercial enterprises were under the reconstruction process, 
and preparing to be privatised very soon.  These enterprises were not operating under licence which 
could affect the export-import regime, except in r espect of the items prescribed in the Memoranda on 
Import Licensing and Prohibitions on Importable Pr oducts and Export Licensing and Prohibitions on 
Exportable Products.    
104. She further noted that in November 1998, with a joint action plan with the Ministry of Public 
Economy and Privatisation (MPEP), Albania had define d the schedule of actions  needed to accelerate 
the privatisation in the trade sector.  Only ten ente rprises and five branches of NSHPN in the districts 
remained under the supervision of the Ministry.  A ccording to the privatisation platform, they were 
subdivided into: Enterprises in direct privatisation,  which shall proceed according to the Decision of 
the Council of Ministers No. 195, dated 20 March 1996 "On the privatisation of enterprises that 
cannot be transformed", this group included:  Du rres Trade Enterprise; Tirana Albcoop, Machinery-
impex in Tirana as well as the branches in Bulqi za, Fier, Kukes, Sarande and Tirana.  These 
enterprises had already interrupted their activity, underwent big damage and looting during the unrest 
of 1997, losses that could not be covered by them.  For the above-mentioned enterprises, the valuation 
of State owned property had conc luded and further privatisation procedures were being followed 
through MEPP.  Enterprises that would be tran sformed into commercial associations and later 
privatised were Agro-export, Industrial-Impex, Arte xport and the Fridge Unit No. 2 in Tirana and the 
Fridge unit in Durres.  These enterprises were in  a good economic and financia l condition.  The fridge 
unit in Durres and the fridge unit No. 2 in Tirana, ha d been registered as share holder companies.  The 
privatisation of these enterprises would start in J une 1999.  The enterprise of Albcontrol Durres would WT/ACC/SPEC/ALB/6/Rev.1 
Page 72  
 
 be transformed into shareholder company according to the Decision of the Council of Ministers No. 
78 dated 21 January 1999.  The Law on State Enterp rises of 17 July 1992 provided in Article 15 that 
the State does not guarantee the obligations of State enterprises towards third parties. 
 105. The representative of Albania confirmed that after accession to the WTO it will observe the 
provisions of Article XVII of the GATT 1994, the WTO Understanding on that Article, and Article 
VIII of the GATS regarding state trading, in particular abiding by the provisions for notification, non-
discrimination, and the application of commercial co nsiderations for trade transactions for any firms 
covered by these provisions. 
 106. The representative of Albania confirmed that  her Government would apply its laws and 
regulations governing the trading activities of St ate-owned enterprises and other enterprises with 
special or exclusive privileges as defined in Article XVII of the GATT 1994 and the Understanding 
on that Article and Article VIII of the GATS in conformity with the provisions of the WTO 
Agreement.  He further confirmed that Albania w ould notify any enterprise falling within the scope of 
Article XVII.  The Working Party took note of these commitments.  
Free Zones, Free Economic Zones  107. Some members of the Working Party noted Albania had a 1996 Government Decision 
providing for the establishment and organisation of  the National Entity for the Development of Free 
Zones, which would have direct dependence on the Government, requested a description of its 
provisions,  whether any free zones have been est ablished and asked Albania to explain what was 
meant by direct dependence from the Government, c ould foreign enterprises locate in the zones on the 
same basis as domestic enterprises, how would the operation of the free zones be administered, 
directly by the Government or through an exclus ive licence granted by the Government, and whether  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 73 
 
 
 there would be trade-related  investment measure s applicable to enterprises operating in the free 
zones.  In response the representative of Albania sai d that a new draft law and a draft regulation on 
"Free Zones" had been presented to the Council of Mi nisters for approval.  A copy of this draft law 
would be made available to the WTO.  Accordi ng to these drafts the Council of Ministers would 
decide from which institution would depend the National Agency for Free Zones.    
108. The representative of Albania stated that establishment of a free zone, the determination of its 
borders and the legalisation of activities to be pe rformed by the zone, could only be done by the 
Council of Ministers, following approval from the Head Council of the National Agency for Free Zones and the General Directory of Customs.  The selection of the companies was made according to 
the procedures defined in the Regulation of Free Zones based on measurable economic criteria:  
capital, time and rent.  Free zones could be estab lished in private or State sites and could be 
administered by a private or State operator, who would be granted a licence after application to the National Agency for Free Zones and the approval of the Council of the Ministers.  Free zones were 
not considered outside the customs territory.  All th e goods entering the zone from the internal market 
were not considered as exported goods and all th e goods going out from the zone to the internal 
market were not considered as imported goods.  A ll juridical or physical persons, domestic or 
foreigners, had equal possibilities to operate in a free zone, if they fulfilled the criteria defined in the 
application procedures specified in the draft regulati ons of the free zone.  Up to now Albania had not 
established any free zone, but there were feasibility studies for establishing two free zones. 
 109. The representative of Albania stated that any free zones established within the territory of 
Albania would be fully subject to the coverage of  Albania's commitments taken in its Protocol of 
Accession to the WTO Agreement, and that Al bania would ensure enforcement of its WTO 
obligations in those zones.  In  addition, goods produced in these areas under tax and tariff provisions 
that exempt imports and imported inputs from tari ffs and certain taxes will be subject to normal WT/ACC/SPEC/ALB/6/Rev.1 
Page 74  
 
 customs formalities when entering the rest of Albania,  including the application of tariffs and taxes.  
The Working Party took no te of these commitments. 
 Mixing regulations 
 
110. In response to questions from Working Part y members, the representative of Albania 
confirmed that it had no law or regulation requiring the use of domestic and imported goods in certain 
proportions or any other sort of mi xing regulations applied to imports. 
 
Government-mandated counter-trade and barter 
 111. Some members of the Working Party asked  whether Albania maintained government-
mandated counter-trade or barter and, if barter  trade has permitted under Albanian Law, whether 
duties, taxes and other restrictions and requireme nts applied to imports a nd exports conducted as 
barter or counter-trade. In response, the representativ e of Albania stated that although Albania did not 
have any provisions in its Customs Code or an y other law regarding no n-mandated barter, it was 
permitted.  However, impor ts and exports conducted as barter or  countertrade could not benefit from 
exemptions of duties, taxes, and other restric tions and requirements that applied under the trade 
regime.   
 Government Procurement 
 
112. Some members of the Working Party asked for information on statistics on procurement, the 
overall value of public sector purchasing in Albania,  a breakdown of the public procurement market 
both by contracting entity and product type, whether a ll foreign suppliers received the same treatment 
as national suppliers when participating in tenders, if  there was an offset policy and, if so, how often 
were offset arrangements negotiated on a case-by -case basis, whether Albania's law made provision  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 75 
 
 
 for a system of domestic and price preferences, if the procurement of certain products was reserved 
for local industry, if Albania had any trade agre ements with other count ries which covered public 
procurement, if so which countries.  Finally, they asked if Albania would intend to accept the 
Agreement on Government Procurement.  In respon se the representative of Albania referred to the 
laws, decisions and guidelines on government pr ocurement listed in document WT/ACC/ALB/41 and 
to the Memorandum on Compliance with the Agreement on Government Procurement 
(WT/ACC/ALB/42).  She said that the following documents would be approved by the Council of 
Ministers:  Law on Public Procurement; Manual of  Public Procurement; Document for the Tender for 
the Pre-qualification of Goods; Document for the Tender for the pre-qualification of Construction, 
Document for the Tender for the Procurement of Goods (Big and complex); Document of the Tender for the Procurement of Systems (Big and Complex) , Document for the tender for the Procurement of 
Construction (Big and Complex); Document for the Tender for the Procurement of Complex Services 
(Based on time periods and their total value), and Document for the Tender for the Procurement of 
Simple Services (Based on time periods and their total value).  The preparation of an amendment to the Public Procurement Law to provide the collection of procurement statistics was under 
consideration.  The overall valu e of public sector purchasing in Al bania for 1996 was about US$365,8 
million.  This amount represented about 13 per cent  of the GDP.  Currently the Government of 
Albania cold not provide a breakdown of the public procurement market.  This would be possible only 
when the law provided the collection of statistics on procurement.  According to Article 9 of the 
Public Procurement Law No. 7971 of 26 July 1995  no discrimination was allowed on the basis of 
nationality.  Procurement proceedings were open for all tenderers on equal terms, regardless of 
nationality, type of ownership and juridical form.  National treatment meant that a foreign supplier, 
foreign products or services must be treated no l ess favourably than domestic suppliers and products.  
There was no offset policy or any other offset arrangements negotiated on a case-by-case basis.  
Albania's procurement law did not make provision for a system of domestic and price preferences, 
therefore there were no mandatory or optional pric e preferences.  The proc urement regime did not 
reserve certain products to local industry, conseque ntly there were no lists of products reserved for WT/ACC/SPEC/ALB/6/Rev.1 
Page 76  
 
 local industry.  Albania did not have any trade ag reements with other count ries which covered public 
procurement.  According to Article 43 of the Alba nian Public Procurement law, in case a tenderer was 
not satisfied with the decision by the procuring en tity, or the decision was not made within the time-
limit, the tenderer could challenge the decision a nd file a complaint with the Public Procurement 
Agency.  The Albanian Government would amend the existing law on public procurement to provide 
the right for further appeal.  Upon accession Albania would initiate negotiations to join the Agreement 
on Government Procurement by tabling an entity lis t and would intend to c onclude the negotiations 
within a year of that date.   113. The representative of Albania confirmed that, upon accession to the WTO, Albania would 
initiate negotiations for membership in the Agre ement on Government Procurement by tabling an 
entity offer.  She also confirmed that if the results of the negotiations were satisfactory to the interest 
of Albania and the other members of the Agreem ent, Albania would complete negotiations for 
membership in the Agreement by 31 December 2000. The Working Party took note of these 
commitments. 
 Agricultural Policies 
 
114. Some members of the Working Party asked fo r clarification whether Albania would be 
seeking developing country status for the purpose of  agriculture subsidy commitments because this 
issue would need to be agreed multilaterally.  Wh ile recognising that Albania might have good policy 
reasons for the export prohibitions on firewood and other unprocessed wood, cattle hides, raw skins of 
sheep and lambs and other hides and skins, they no ted that export bans were  prohibited under Article 
XI of GATT 1994 unless justifiable under WTO provisions and asked Albania to find WTO-
consistent measures to achieve its policy goals.  No ting that Albania had not used agricultural export 
subsidies in the past they sought confirmation that  Albania would bind export subsidies at zero.  
Albania was asked to prepare tables on domestic sup port and export subsidies and to present data for a  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 77 
 
 
 recent base period, normally the most recent three year s, for which complete and final data in the form 
of actual expenditures were available.  For each tabl e, data should cover each of the three years, not 
just the average.  Expenditures relating to fisheri es should not be included.  Expenditures relating to 
the upkeep of buildings and other administrative co sts, unless directly related to the provision of a 
specific service, should also be omitted.  Expenditures to subsidise the cost of  inputs (such as water) 
were not allowed.  Although there were no expe nditures listed, Albania should be aware that 
Programmes funded by international projects did not  need to be included in the domestic support 
submission.  The support for flour for making br ead, which functioned as a price control on flour 
rather than as a market price support for grain produ cers, did not have to be included in the AMS.  If 
Albania set an applied administered price for wheat or other grains, or provided any other product-specific subsidy, the support should be included in  the AMS.  Albania was also asked to provide 
information concerning the purchase and sale of grain. 
 115. In response the representative of Albania said that the Government was considering the 
developing country issue.  Albania had supplemente d the documentation on export licensing with HS  
codes, and had indicated that it would comply w ith WTO principles.  Albania would eliminate all 
export prohibitions at the time of accession.  Al bania would bind export subsidies for agricultural 
commodities at zero as indicated in the revisi ons to the Schedule of agriculture, (document 
WT/ACC/SPEC/ALB/4/Rev.1)  The figures in th e schedule on agriculture referred to actual 
expenditures.  Albania did not maintain subsidi es of any sort on agricultural commodities.  The 
revised schedule on agriculture had provided great er detail in the descriptions of the green box 
measures (including the 12 research institutions) and the data had been desegregated into the last three 
years.   The programmes related to fisheries ha d been excluded from the revised schedule.  The 
restoration of public buildings referred to the ci vil unrest of 1997 where Government buildings were 
looted and had suffered physical structural damage  requiring reparations.  Albania maintained buffer 
stocks of grain, but the volume of grain had b een decreasing steadily.  The volume kept under State 
reserves represented less than one percent of 1998 domestic consumption and the programme did not WT/ACC/SPEC/ALB/6/Rev.1 
Page 78  
 
 affect prices because the grain was sold at aucti on.  The quantity kept under State reserves was being 
reduced as a commitment taken in the framework of the Enhanced Structural Adjustment Facilities 
(ESAF) programme of the IMF.  Input subsidies ge nerally available to low income or resource-poor 
producers were made in each of the years 1996-98  and were included in the revised schedule on 
agriculture.  The programme was discontinued in 19 98 and no water subsidies were provided in 1999.  
No other input subsidies existed.  The computati ons of AMS data covered each year 1996-98.  Since 
the price ceiling for bread was removed in 1996, there was no support for agriculture and the AMS 
calculations were zero.  
Trade-Related  Intellectual Property Regime 
 116. Some members of the Working Party requested details about legislati on and the enforcement 
of intellectual property rights protection in Albania and the compatibility with the requirements of the 
TRIPS Agreement.  Specific questions were addr essed regarding exceptions from national or MFN 
treatment, right holders' exclusive rights, terms of protection, compulsory licenses, judicial review, 
copyright, trademarks, industrial designs, patents and competition.  In response,  the representative of 
Albania noted that Albanian borders were controlled by the central customs authorities of the Albanian State.  In Albania there was already an established system of border measures for the 
prohibition of counterfeit or pirated goods that infri nge and violate intellectual property rights.  The 
preparation and drafting of the legal basis for that system had been completed and was aimed at an 
effective guarantee of the enforcement of intellectua l property rights in Albania in compliance with 
the TRIPS Agreement.  117. The representative of Albania said that Albania was a member of the Convention Establishing 
the World Intellectual Property Organisation, the Paris Convention for the Protection of Industrial 
Property, the Berne Convention fo r the Protection of Literary and Artistic Works, the Madrid 
Agreement Concerning the International Registration of Marks, and the Patent Co-operation Treaty,  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 79 
 
 
 the Extension Agreement between EPO and Albanian  Patent Office. Article 1 of Albania’s Law on 
Industrial Property identified the following as object s of the Law:  patents for inventions and utility 
models,  trademarks and service marks, industrial  designs, and appellations of origin.  In document 
WT/ACC/ALB/36 Albania submitted a detailed Me morandum on the Conformity of Albania's 
Intellectual Property Regime with the provisions of  the TRIPS Agreement. Albania accorded national 
treatment to the citizens of member countries of th e Paris Convention or to those citizens who have an 
industrial or commercial enterprise in a member country.  In the new draft law, there was an 
additional Article that determines th e above-mentioned treatment.  On a more general basis, this right 
was set forth in Articles No. 50 and 100 of the curre nt Law on Industrial Propert y.  The Albanian Law 
On Competition included a number of Articles that d eal with the regulation of competition (Articles 
24 -26) or with the prevention of illegal actions in  competition with the purpose of gaining advantages 
(Articles 37 - 42).  According to point 3 of Article  10bis of the Paris Convention, the Albanian Law 
on Competition foresaw the prevention of the actions that intend to create confusion (Articles 43 and 
27.1 and 27.3); the prevention of the false alle gations that intend to discredit the competitor 
(Articles 42,30.2 and 27.1) and the prevention of fa lse allegations that create a wrong image about the 
characteristics of the goods of the competitor (Articles 27.2, 5 and 6). 
 
Substantive Standards of Protection 
Copyright and related rights 
 
118. In response to questions concerning the admi nistrative formalities requirements for the 
enjoyment of copyright, whether free uses of comput er programs were restricted to back-up copies 
and decompilation, the preparation of legislation on layout designs of integrated circuits and on border 
enforcement, the representative of Albania said that the Albanian Law on Copyright foresaw no 
formal administrative requirements for the enjoyment of copyright. According to Article 51, point b, 
works were protected in Albani a in accordance with the international conventions where Albania 
participates.  The representative of Albania said that computer programs were included in the WT/ACC/SPEC/ALB/6/Rev.1 
Page 80  
 
 Albanian Copyright Law. Section 13 of this law defi nes the right of the lawful owner of a copy of a 
computer program, without the author's authorization to make a copy or an adoption of such a 
program, in cases where this adoption is indispensab le for the utilization of the computer program for 
the purposes of which the program has been lawfully obtained; and for archival purposes and if necessary for the replacement of the copy lawfully  obtained.  Section 14 defined the conditions in 
which authorization of the author will not be required.   
 
119. Albanian Copyright Law provided the protection to computer programs and data compilations 
required by Article 10(2) of the TRIPS Agreement and it fully complies with "whether in machine 
readable or other form".  Chapter III of the Albanian Copyright Law defined the exceptions and 
limitations of a copyright as well as related right s.  In accordance with section 6 of the law free 
reproduction for private purposes shall be permitted, without the author's authorization and without 
payment or remuneration, to reproduce a lawfully published work exclusively for the users' own private use (including use for scientific and research purposes).  This provision shall not be applied in 
respect of:  the reproduction of works of architecture in  the form of buildings or similar constructions;  
the reprographic reproduction of works of fine arts of restricted edition, of graphic presentation of 
musical works (sheet music) and of exercise books or other one-use publications;  the reproduction of 
computer programs except for cases mentioned in section 13 of the Albanian Law;  any other 
reproduction that would conflict with the normal exploitation of the work or would unreasonably 
prejudice the legitimate interests of the author.   
 120. According to section 8 of the Albanian Copyri ght Law, the free use for teaching shall be 
permitted without the author's aut horization and without payment of remuneration, but subject to the 
obligation to indicate the source and the name of th e under specified conditions.  Section 9 defined the 
rights and exceptions of the free reproduction by Libraries and Archives.  Section 10 of the Albanian 
Copyright Law dealt with the rights and exceptions of the free reproduction for legal and administrative purposes. It defines that such reproduction is permitted without the author's  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 81 
 
 
 authorization and without remuneration to reproduce a work for court or administrative proceedings to 
the extent justified by the purpose.  Section 11 of this law also defines the rights and exceptions of the 
free use for information purposes.  Section 12 of the law defined the limitations of the free use of 
pictures of works permanently located in public plac es. According to this section it shall be permitted, 
without the author's authorization and without pa yment of remuneration, to reproduce broadcast or 
communicate to the public by cable a picture of a work of architecture, a work of fine art, a 
photographic work or a work of applied art that is  permanently in a public place (square, street, park, 
etc) except if the picture of the work is the main subject of such reproduction, broadcasting or 
communication and if it is used for commercial pur poses.  Albanian Law protected performers and 
producers of phonograms "retroactively" as required by the Article 14.6 of TRIPS Agreement in conjunction with Article 18 Berne Convention.  Sec tions 13 and 14 of the law define the limitations 
and exceptions for the free reproduction and adap tation as well as free decompilation of computer 
programs.  The provisions of this section may not be interpreted in such a way as to allow its 
application to be used in a manner which confli cts with a normal exploitation of the computer 
program or that unreasonably prejudices the legitimat e interests of its author.  Section 15 of the 
Albanian Law defines the free ephemeral recordi ng by a broadcasting organization, without the 
author's authorization and without payment of separ ate remuneration, to make an ephemeral recording 
by its own facilities and for use in its own broadcasts of a work which it has the right to broadcast.  Section 16 of the law defined the limitations on the free public performance.  
 
121. The Albanian Government had compared the Albanian Law on Copyright with the TRIPS 
Agreement and prepared a draft on the establishmen t of a package of customs measures to prevent 
counterfeited and pirated goods that infringe the ownership of intellectual rights in order to make the 
Albanian legislation compatible with Articles 51 to 60 of the TRIPS Agreement.  Article 82:4 of the 
new Customs Code provided that the customs author ities at the request of the holder of intellectual 
property rights must prevent goods known as counterfe ited or as pirated from free circulation, export 
and re-export as well as establishing a cancelling regime .  The procedures to exercise this right were WT/ACC/SPEC/ALB/6/Rev.1 
Page 82  
 
 determined in the implementation resolution of this code.  This procedure was in full compliance with 
the special provisions of the TRIPS Agreement on border measures.  The Government of Albania 
would adopt Dispositions of Applicability to the Cu stoms Code of the Republic of Albania in April 
1999.  The above-mentioned provisions were in fu ll compliance with Article 10:2 of the TRIPS 
Agreement, which covers computer  programs and databases.  Their protection would be in the same 
terms as the protection for artistic works in the Bern Convention.  Related legislation on border 
enforcement was established in Artic les 119 and 120 of the Draft Dispositions of Application of the 
Customs Code.  
Trademarks 
 
122. In response to questions concerning the regi stration of well-known trade marks and the 
protection of trade names, the representative of Albania said that Article 76 of the Law on the Industrial Property refused to register a trademark when it infringes the rights of a well-known trademark.  The definition of a well-known trad emark as such was done by the Office of Patents 
according to the information received by the co nsumer as well as information received by the 
International Bureau of the Registration of Trad emarks in Geneva, the Office of the Trademark 
Registration of the European Community in Alicante, Spain and homologue offices in Europe and elsewhere, with which the Albanian Office of Pate nts kept regular contacts.  In accordance with 
Article 8 of the Paris Convention, the Albanian Law on Industrial Property included no provision that 
obliges the registration or the depositing of a co mmercial name. Article 18 of the Law On the 
Provisions that regulate the first part of the Comme rcial Code sets forth that within one month from 
the day of the beginning of a commercial activity, the trader should announce his or her name and should deposit his or her original signature at th e court appointed to keep the commercial register. 
 
123. With reference to the five years period before  allowing a mark to be cancelled for non-use, 
the representative of Albania said that when use was required to maintain a registration, the  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 83 
 
 
 registration may be cancelled only af ter an uninterrupted period of non-use for at least three years, 
unless there was a valid reason to explain the inactivit y, such as the existence of some obstacle in 
production or marketing encountered by the owner of a registered item.  The legal use of a trademark 
by a third party would be recognized as use of the trademark for the purpose of maintaining the registration. The representative of Albania added that a sign shall not be protected as a mark, if its use 
as a mark would be in conflict with earlier rights.  Th e following, in particular shall be considered as 
earlier rights:  an identical or similar mark of a thir d party, in respect of identical or similar goods or 
services;  in respect of goods or services which are neither identical nor similar which have an earlier 
filing date or priority date, and wh ich have been registered or subse quently will be registered;  a well-
known mark of a third party within the meaning of Article 6 bis of the Paris Convention for the 
Protection of Industrial Property.  For the defin ition of a well-known mark, the information of the 
consumers about the mark will be taken into consideration.  The trademark registrar had the same 
responsibilities as the Patent Office.   
 
Industrial Designs  124. The representative of Albania said that the Albanian Law "On Industrial Property Rights" 
Part II, Article 59 gives the definition and conditi ons of protection for industrial designs, explaining 
that textile designs are included in this protection.  Articles 60-69 provide the right of protection, the 
procedures for registration, the temporary protection of industrial designs exhibited at international 
exhibitions, etc.  
Patents 
 
125. In response to questions concerning compulsory licences, Albania's implementation of the 
TRIPS rules on enforcement of intellectual property rights and whether inventions relating to plants 
and animals were excluded from patentability in Albani a.  The representative of Albania said that in WT/ACC/SPEC/ALB/6/Rev.1 
Page 84  
 
 order to be patentable, an invention shall be nove l, shall involve an inventive step and shall be 
industrially applicable.  The following, in particular , shall not be regarded as inventions within the 
meaning of paragraph (1):  discoveries, scientif ic theories and mathematical methods;  aesthetic 
creations;  schemes, rules and methods for perform ing mental acts, playing games or doing business, 
and programs for computers;  presenta tions of information.  A patent sh all not be granted in respect of 
an invention  of which the publication or exploitation   would be contrary to public order or morality.  
No patents shall be granted for substances obtaine d through internal nuclear transformations for 
military purposes.  No patents shall be granted for inventions of surgical, diagnostic or therapeutic 
methods practised on the human or animal body, as th ey shall be regarded as inventions which are not 
susceptible to industrial application. This provision sh all not apply to inventions  relating to substances 
and devices for use in any of these methods.  No patent s shall be granted in respect of plant or animal 
varieties or essentially biological processes for the pr oduction of plants or animals; this provision does 
not apply to microbiological processes or the products thereof.   126. The representative of Albania added that on th e request of any person who proves ability to 
work the patented invention in the Republic of Alba nia, made after the expiration of a period of four 
years from the filing date of the application for the patent or three years from the grant of the patent, 
whichever is later, the Patent Office may grant a non-exclusive, non-voluntary licence if the patented 
invention was not worked or was insufficiently work ed in the Republic of Albania. The grant of a 
non-voluntary licence shall be subject to the paymen t of equitable remuneration to the owner of the 
patent.  A non-voluntary licence shall not be gran ted if the Patent Office was convinced that 
circumstances exist to justify the non-working or insu fficient working of the patented invention in the 
Republic of Albania.  In deciding whether to grant a non-voluntary licence, the Patent Office shall give both the owner of the patent and the pers on requesting the non-voluntary licence an adequate 
opportunity to present arguments.  Any non- voluntary licence shall be revoked when the 
circumstances which led to its gr anting cease to exist, taking into account the legitimate interests of 
the patent owner and of the licensee. The contin ued existence of these circumstances shall be  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 85 
 
 
 reviewed upon request of the patent owner. The ne w Customs Code as well the regulations passed for 
its implementation, the Code of the Civil Procedure and the Penal Code, in separate Articles foresaw a 
strict defence of the interests of the owners of in tellectual property objects.  By law acts, including the 
measures that should be taken at the customs and th e enforcement of intellectual property rights, in 
accordance with the requirements of TRIPS, had been recently drafted and was expected to be 
approved by the Government in April 1999 (Articl es 119 and 120 of Draft Dispositions of Application 
of Customs Code).  The new varieties of plants and the new breeds of animals were excluded from the 
patentability, when their creation had to do with es sential biological processe s for their production.  
This was not valid for microbiological processes or their by products.  
Layout Designs of Integrated Circuits and Business Secrets  
127. The representative of Albania said that the Albanian Government was preparing a law on 
layout-designs of integrated circuits based on Ar ticles 35-38 of the TRIPS Agreement.  The Patent 
Office would be responsible for these matters. Rega rding trade secrets, Article 49 of Law No. 8044, 
dated 7 December 1995, provided protection for bus iness secrets. According to this article the 
providing of business or operative secrets on the ac tivity of the competitors in illegal way or 
encouraging their employees in order to use or to sel l them was prohibited. It was forbidden, to give 
to others or to use business or operative secrets, knowledge which were provi ded during the relations 
of employment or other confidential relations, during the term of these relations in order to gain some 
advantages in the competition for oneself or for anot her third party or to da mage the owner of any 
commercial company. This obligation was valid for a period of two years after the termination of the employment or the confidential relation if the owne r of the business activity had a justified interest 
and if it did not lead to any unreasonable restric tion of the business or the professional activity of 
others.  
 
Enforcement WT/ACC/SPEC/ALB/6/Rev.1 
Page 86  
 
  
128. The representative of Albania noted that the Law on "The Customs Code in the Republic of 
Albania", No. 8449, dated 27.01.1999, Article 82, Paragraph 4, gives the customs authorities the 
competence to intervene, upon request of an holder of an intellectual property right  for stopping the free circulation, export, re-export and place u nder suspension measures goods recognized as 
counterfeit or pirated.  The procedures of this inte rvention of customs authorities are established in the 
Decision of the Council of Ministers No. 205 dated 13.04.1999, entitled "The Implementing 
Provisions on Customs Code".  The first part of  this decision defined c ounterfeit and pirated goods 
according to Article 82 of the Customs Code. Title  9 defined the procedures of action of customs 
authorities.  According to Point 119, the customs au thorities take action after an application in written 
form of the holder of the right, when the counterfeit or pirated goods were rele ased for free circulation 
under a transit procedure or a procedure with economic impact. 
 129. She further added that the application of the hol der of the right was required to be in written 
form and contain a sufficiently detailed description of the goods to enable the customs authorities to 
recognize them, the length of the period during which the customs officers are requested to take action 
and any other useful information to identify th e exporter and the importer. The application was 
required to be accompanied by proof that the app licant is holder of a trade mark, production license, 
copyright etc.  The customs author ities examined the application, and notified the applicant within 5 
days whether it would be accepted.  When the ap plication is accepted the decision of the General 
Directorate was notified promptly to all customs offices. This decision determines a period within 
which the customs authorities may intervene.  Th e decision may foresee that the applicant shall 
forward a down payment, subject to repayment of any excess amount, to cover any administrative 
charges occurred to the customs administration for ca rrying out the services. If the applicant did not 
agree with the given amount, the General Directorate was required to review it. 
  WT/ACC/SPEC/ALB/6/Rev.1 
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 130. She further noted that point 120 of the Decision of the Council of Ministers No. 205 defined 
the control procedures for counterfeit and pirated goods according to the description of the rights’ 
holder.  When customs authorities proved that th e controlled goods correspond to the description of 
the applicant they suspended their release or seize the goods depending on the circumstances and 
visible proof.  They then had to notify the applicant immediately about the action taken.  In accordance with the legislation in force regardi ng the protection of professional, commercial and 
industrial secrecy, the customs authorities notified the holder of the right of the name and address of 
the declarant, and if known, the name of the c onsignee of the goods, with a view to allow the 
applicant to take legal action against the consignee.    131. If the applicant requests to in spect the suspended or seized goods, the custom authorities 
would allow him or her to do so.  After notifi cation of the decision of the General Customs 
Directorate for the suspension of seizure of the goods, the holder of the right had the right to appeal to 
the competent judicial bodies for damages and to require compensation, but he or she had to notify the customs authorities within 20 days.  If the holder of the rights does not notify the customs authorities 
in 20 days, the customs would suspend the decision  for the suspension or seizure of the goods, and 
release these goods.  If the charges of the applicant we re not proven, and damage has been incurred to 
the importer or any third party as a result of the in tervention of the customs authorities, the applicant 
is responsible and must compensate for the damage .  The applicant must make a down payment for 
storing expenses of the goods. 
 132. The representative of Albania that her Governme nt would apply fully th e provisions of the 
Agreement on Trade-related Aspects of Intellectua l Property Rights (TRIPS) by the date of its 
accession to the WTO without recourse to a transitional period.  The Working Party took note of this 
commitment. 
 
Trade in Civil Aircraft WT/ACC/SPEC/ALB/6/Rev.1 
Page 88  
 
  
133. The representative of Albania stated that Alba nia committed that at the time of accession its 
imports on civil aircraft and parts will be zero.  Fu rthermore, Albania will be in conformity with the 
Agreement on Trade in Civil Aircraft and will be ready to sign the Agreement at the time of 
accession.  The Working Party took note of those commitments.    
Policies Affecting Trade in Services 
 
134. The representative of Albania submitted Albania' s draft schedule of specific commitments in 
services (WT/ACC/SPEC/ALB/5/Rev.2).  
 TRANSPARENCY 
 Publications 
 
135. The representative of Albania said that laws, reso lutions and decisions related to international 
trade only became effective after publication in the Official Gazette.  136. The representative of Albania said that, at the latest from the date of accession, all laws and 
regulations related to trade would be published in the Official Gaze tte "…" promptly and that no law 
or regulation related to internati onal trade would become effective prior to such publication.  He 
further stated that Albania would implement fully Article X of the GATT 1994 and the other 
transparency requirements in WTO Agreements requiring notification and publication. 
 
Notification  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 89 
 
 
  
137. The representative of Albania said that, at the lat est upon entry into force of the Protocol of 
Accession, Albania would submit all initial notifica tions required by any Agreement constituting part 
of the WTO Agreement.  Any regulations subsequent ly enacted by Albania which gave effect to the 
laws enacted to implement any Agreement cons tituting part of the WTO Agreement would also 
conform to the requirements of that Agreement.  The Working Party took note of these commitments. 
 
TRADE AGREEMENTS 
 
138. The representative of Albania said that a bila teral trade agreement between Albania and 
Canada was in the process of being signed. 
 
139. In response to a request from members of the Working Party, the representative of Albania 
provided the following list of trade agreements. 
 
List of Promotion and Investment Prot ection Agreements that the Republic  
of Albania has agreed with countries. 
 Country     Agreed on :  
 
Greece      March   1991 Turkey      June   1992 Rumania     May  1994 Bulgaria     April  1994 Macedonia     February 1998 Federal Republic of Germany   October  1991 Italy      September 1991 France      June   1995 Austria      March  1993 Switzerland     September 1992 Finland     June   1997 WT/ACC/SPEC/ALB/6/Rev.1 
Page 90  
 
 Denmark     September 1995 
Netherlands     March  1995 Holland     April  1994 United Kingdom    March   1994 Slovenia     October 1997 Croatia      May   1993 Hungary     January 1996 Czech Republic    June   1994 Poland      March   1993 Russian Federation    December 1994 USA      November 1991 Israel      January 1996 Tunisia      October 1993 Egypt      December 1994 China      February 1993 Malaysia     January 1994 Portugal     September 1998 Belgium-Luxemburg    February 1999  
List of the Agreements on Economic Cooperation and Trade that Albania 
 has agreed with other countries 
 
Country     Agreed on: 
 
Greece      March  1988 Turkey      June  1990 Rumania     April  1989 Bulgaria     April  1994 Macedonia     January 1998 Federal Republic of Germany   June  1988 Italy      November 1989 France      February 1988 Austria      March  1994 Switzerland     October 1995 Holland     February 1993 Slovenia     May  1992 Croatia      May  1993  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 91 
 
 
 Czech Republic    June   1994 
Poland      March  1993 Russian Federation    April  1995 USA      May  1992 Egypt      December 1994 China      February 1993 Malaysia     January 1994 
 
The representative of Albania also made copies of th e above agreements available for consultation by 
WP members.  
 140. The representative of Albania stated that her Government would observe  the provisions of the 
WTO including Article XXIV of the GATT 1994 and Ar ticle V of the GATS in its trade agreements 
from the date of accession, and would ensure that  the provisions of these WTO Agreements for 
notification, consultation and other requirements co ncerning preferential trading systems, free trade 
areas and customs unions of which Albania became  a member would be met.  The Working Party 
took note of these commitments.  
Conclusions  
 
141. The Working Party took note of the explanations and statements of Albania concerning its 
foreign trade regime, as reflected in this Draft Report.  The Working Party took note of the 
commitments given by Albania in relation to cer tain specific matters which are reproduced in 
paragraphs [30, 34, 39, 46, 50, 52, 54, 59, 63, 67, 71, 75, 77, 79, 81, 84, 86, 87, 95, 99, 101, 106, 109, 
113, 132, 133, 137, 140] of this Draft Report.  The Working Party took note that these commitments had been incorporated in paragraph 3 of the Draft Protocol of Accession of Albania to the WTO.   
 
142. Having carried out the examination of the foreign trade regime of Albania and in the light of 
the explanations, commitments and concessions made  by the representative of Albania, the Working WT/ACC/SPEC/ALB/6/Rev.1 
Page 92  
 
 Party reached the conclusion that Albania be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this report, and 
takes note of Albania's Schedule of Con cessions and Commitments on Goods (document 
WT/ACC/SPEC/ALB/…/) and its Schedule of Sp ecific Commitments on Services (document 
WT/ACC/SPEC/ALB/…/) that are annexed to the Protocol.  It is proposed that these texts be adopted 
by the General Council when it adopts the Report.  When the Decision is adopted, the Protocol of 
Accession would be open for acceptance by Albania which would become a Member thirty days after it accepts the said Protocol.  The Working Party ag reed, therefore, that it had completed its work 
concerning the negotiations for the accession of Albani a to the Marrakesh Agreement Establishing the 
WTO.] 
 
[TO BE COMPLETED] WT/ACC/SPEC/ALB/6/Rev.1 
 Page 93 
 
 
  
[APPENDIX I ] 
 
ACCESSION OF ALBANIA 
 
Draft Decision  
 
 The General Council,   Having regard
 to the results of the negotiations di rected towards the establishment of the 
terms of accession of the Republic of Albania to  the Marrakesh Agreement Establishing the World 
Trade Organization and having prepared a Protocol for the Accession of Albania,   Decides
, in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic of Al bania may accede to the Marrakesh Agreement 
Establishing the World Trade Organization on the terms set out in the said Protocol.] WT/ACC/SPEC/ALB/6/Rev.1 
Page 94  
 
  
 
PROTOCOL OF ACCESSION OF ALBANIA 
TO THE MARRAKESH AGREEMENT ESTABLISHING THE  
WORLD TRADE ORGANIZATION  
 
Draft
 
 
 
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the 
approval of the General Council of the WTO accord ed under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereina fter referred to as "WTO Agreement"), and the 
Republic of Albania (hereinafter referred to as "Albania"),  
  Taking note
 of the Report of the Working Party on the Accession of Albania to the WTO in 
document WT/ACC/ALB/.... (hereinafter referred to as the "Working Party Report"),  
 Having regard
 to the results of the negotiations on the accession of Albania to the WTO, 
  Agree
 as follows: 
 
Part I - General  
 
1. Upon entry into force of this Protocol, Al bania accedes to the WT O Agreement pursuant to 
Article XII of that Agreement and thereby becomes a Member of the WTO.   WT/ACC/SPEC/ALB/6/Rev.1 
 Page 95 
 
 
 2. The WTO Agreement to which Albania acced es shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal inst ruments as may have entered into force before the 
date of entry into force of this Protocol.  This Protocol, which shall include the commitments referred 
to in paragraph [141] of the Working Party Report, shall be an integral part of the WTO Agreement. 
 3. Except as otherwise provided for in the paragr aphs referred to in pa ragraph [141] of the 
Working Party Report, those obligations in the Multilateral Trade Agreemen ts annexed to the WTO 
Agreement that are to be implemented over a period of  time starting with the entry into force of that 
Agreement shall be implemented by Albania as if it had accepted that Agreement on the date of its 
entry into force.  
4. Albania may maintain a measure inconsistent  with paragraph 1 of Article II of the GATS 
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to the GATS on Article II Exemptions. 
 
Part II - Schedules
 
 
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and 
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to 
as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement 
on Trade in Services (hereinafter referred to as  "GATS") relating to Albania.  The staging of 
concessions and commitments listed in the Schedu les shall be implemented as specified in the 
relevant parts of the respective Schedules.  
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date 
of that Agreement, the applicable date in resp ect of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. WT/ACC/SPEC/ALB/6/Rev.1 
Page 96  
 
  
Part III - Final Provisions
 
 
7. This Protocol shall be open for acceptance, by signature or otherwise, by Albania until ….. 
 8. This Protocol shall enter in to force on the thirtieth day following the day of its acceptance. 
 
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certifie d copy of this Protocol and a notification of 
acceptance thereto pursuant to paragraph 7 to each member of the WTO and Albania.  
10. This Protocol shall be registered in acco rdance with the provisions of Article 102 of the 
Charter of the United Nations.   Done at Geneva this ... day of   .... one thousand nine hundred an d ninety nine, in a single copy 
in the English, French and Spanish languages eac h text being authentic, except that a Schedule 
annexed hereto may specify that it is authen tic in only one or more of these languages.  WT/ACC/SPEC/ALB/6/Rev.1 
 Page 97 
 
 
  
ANNEX 
 
SCHEDULE – REPUBLIC OF ALBANIA  
 
Part I - Goods 
 
[TO BE COMPLETED] 
  
Part II - Services 
 
[TO BE COMPLETED] 
 
 
__________ 
  
   
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 98  
 
APPENDIX I 
  
Memorandum on Restrictions and Proh ibitions for Importable products 
  
 
 
Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
 93.01 - 93.07 Arms and Munitions, Parts and 
Accessories Thereof:  M ilitary weapons, munitions 
such as bullets of all cal ibers, missiles, grenades, 
mines, fireworks of 180 mm, etc. 
36.01 - 36.06.90.90 Explosives, Pyrotechnic Products, 
Matches, Pyrophoric Alloys: military explosives and 
powders such as TNT, egzogyn, dynamite, ammonite, etc.; all kinds of firearms  
Regulation for the "Licensing of Trade and Sale of 
Armaments", dated 10.09.1994 approved by the Prime 
Minister; 
Decision of the Council of Ministers: On the 
Extermination and Sales of Armaments and 
Munitions", Number 365, 6.6.1994 
Decision of the Council of Ministers: "For Working 
with Explosive Materials", Number 257, 16.4.1996  
To protect the national security of the 
Republic.  
The Ministry of Defence (MOD) has defined the procedures for 
obtaining export licenses for these products and is authorized to 
issue such licenses.   
There are two types of licenses,  one for armaments and one for 
explosive materials.  For armaments, the license is available for 
juridical, public, privat e, Albanian, and foreigners.  The license is 
authorized by the Order by the MOD, Number 402, dated 1998.  The license is transferable and can be automatically renewed in 
part or whole by the Minister. 
The licensed enterprises or person(s) must have an Export 
Authorization by the MOD.  The authorization is granted when 
the following documents are supplied: legal registration of the enterprise or person, the right to excise the activity, and the 
certificate of the end-user.   
For explosives, licenses are issued under Order Number 402 by a 
commission in the MOD.  A license defines the purposes of the 
activity, the date of issue, validity, the terms of renovation of the 
license and the registration number.  The license is issued to 
professionals and is non-transferab le.  The license is for two years 
and is renewable.   
  
  WT/ACC/SPEC/ALB/6/Rev.1
 Page 99 
Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
 28.44  Nuclear materials, ra dioactive materials, sources 
for the radioactive radiation (including radioactive 
waste), technologies, equipment and plants, special 
non-nuclear materials  
To protect the national security of the 
Republic, as well as to adhere to 
international commitments related to 
non-proliferation, mass destruction and production of technologies 
thereof.  
The Ministry of Defence has defi ned the procedures for obtaining 
import licensing for these products. 
 
Non-dangerous waste: Waste from social and 
economic activities and physically consumed products 
that are not included in the definition of dangerous waste (see prohibited section for the definition of 
dangerous waste); these pr oducts include waste from 
steel, foundry, copper, brass, bronze, glass, paper and card board, wool and cotton fibres, fabrics of wool and 
cotton ; contemporary productive technology 
(equipment, methods, or new technologies that are used to prevent or minimize the damage to the 
environment); and urban waste from houses and social 
activities. Decision of the Council of Ministers: "On Dangerous 
and Non-dangerous Waste", Number 26, dated 31.1.94  
To protect the life and health of the 
population, and to protect the 
environment  
The Ministry of Health and the Committee of Environmental 
Protection has defined the procedures for obtaining import 
licensing for non-dangerous waste.   
To request a  license one must  be a physical and juridical 
person(s), must provide a declaration that contains a list of the 
waste to be imported, its quality and composition, its destination within Albania, and an explanation of the purposes of its use (i.e., 
if to be used in productive economic activity or as waste without 
additional value-added activities).  The importer must respect all standards of environmental protection. 
The importer must have a declaration on waste provided by the 
authorized institutions of the country of origin, certificates that 
demonstrate that such waste ar e not dangerous, and that the 
exporter have permission from the customs authorities of the country of origin.  Finally, all transportation documents must 
accompany the abovementioned documents. 
The Ministry of Health or Committee on Environmental 
Protection must issue or refuse a license within 30 working days 
after the submission of the application.  Licenses are valid for one year and are non-automatic.  
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 100  
Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
Narcotic Drugs and Psychotropic Substances refer to 
the list in accordan ce with the Conv entions of 1961 
and 1971.  See Annex 2 of this table, titled “ List of 
Narcotic Drugs and Phychotropic Substances which 
require import Licensing and Special Import Authorization to be imported in Albania”. 
Law: "On Narcotic Drugs and Psychotropic 
Substances, Number 7975, dated 26 July 1995.  This law was drafted in accordance with the 
Convention on “Narcotic Drugs” 1961 and Convention 
on “Psychotropic Substances” 1971, and the Adjournments of 1993. 
 To control narcotics through import 
quotes as well as the controlling of the whole import process. 
To protect the life and health of the 
population and to adhere to international conventions to which 
Albania is a signatory.  Narcotic drugs and psychotropic substances for medicinal 
purposes are permitted to be imported into the Republic of Albania after they have been regi stered.  Both local and foreign 
products are subject to registration.  what follows are the 
conditions of importing narcotic drugs and psychotropic substances.   
Prior to applying for a  license to import a narcotic or 
psychotropic substance, a person or enterprise must be registered in the Court of first degree to become a natural or juridical 
subject, and then to be registered with the proper Tax Office.  The 
tax registration process registers the individual/firm as having the right to engage in specific trading activity (i.e., import, export, 
transport, or other marketing activities) or medical/scientific 
research activities requiring narcotic drugs or psychotropic substances.    
  WT/ACC/SPEC/ALB/6/Rev.1
 Page 101 
Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
  Having been registered with the Court and Tax Office, natural or 
juridical subjects can apply for a license to import pharmaceutical 
products into Albania. To apply for a license, natural or juridical 
subjects must have graduated with  a degree in pharmacy from the 
Faculty of Natural Sciences or have employed a person who is qualified as such.  At this point the importer is prepared to present 
an application for a license at the Directory of Pharmaceutics in 
the Ministry of Health.  To re quest for a license, the importer, 
either a producer or a party auth orized by him, must provide the 
name and address of the techni cal director (i.e., the licensed 
pharmacist registered in Albania), define the scope of the activities, the countries with which trade will occur, and provide a 
list of the name and quantities of the substances. The license is 
non-automatic, non-transferable and valid for one year. Upon expiry of this term, the importing entity should apply for a new 
import license. 
Upon issuing of the import licensi ng, the importer of narcotic or 
psychotropic medicines may import such medicines only after 
being issued an authorization from the Ministry of Health, Directory of Phar maceutics, which is issued within five working 
days.  The importer should pres ent a request that includes the 
name and address of the exporter, the name of the recipient of the cargo (importer in Albanian), the joint international name, the 
name of the medicine in the tables included the international 
conventions, the quantity of each medicine, the time period when the import is due, the mode of  transport and the point of 
destination within the Republic of Albania.   
 WT/ACC/SPEC/ALB/6/Rev.1 
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
  The authorization is based on the sample compiled by the 
Narcotic Medicines Commission of the Economic and Social Council of United Nations. The authorization is passed by the 
Albanian importer to the fore ign producers (the respective 
exporter) who presents it to the Control Bodies of his country and the latter presents this authoriza tion to the International Board of 
Narcotic Control (INCB) to carry out the necessary verifications. 
After approval from the latter, th e exporting country issues to the 
producer the export authorization. This document should be 
together with the cargo and upon arrival at the destination, a copy 
of it is sent to the Albanian control authorities, which confirm the arrival of the cargo to the government of the exporting country. 
Upon the arrival of cargo in Albania, the respective import 
authorization is issued in same mode as proceeded for other medicines (refer to the following paragraph). 
30.00 Pharmaceutical products  
Law on “Medicaments”, Number 7815, dated 
20.04.1994 
 To protect the life and health of the 
population. Medicines are permitted to enter into the Republic of Albania 
after they have been registered.  Both local and foreign products 
are subject to registration.  The process for importing a registered 
pharmaceutical product is first desc ribed and then the process for 
registering a pharmaceutical product is described. 
Prior to applying for a license to import pharmaceutical products, 
a person or enterprise must be registered in the Court of first 
degree to become a natural or juridical subject, and then to be registered with the proper Ta x Office.  The tax registration 
process registers the individual/firm as having the right to engage 
in specific trading activity (i.e., import, export, transport or other marketing activities for phar maceutical products).   
  WT/ACC/SPEC/ALB/6/Rev.1
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
  Having been registered with the Court and Tax Office, natural or 
juridical subjects can appl y for a license to import 
pharmaceuticals products into Alba nia. To apply for a license, 
natural or juridical subjects must have graduated with a degree in 
pharmacy from the Faculty of Natural Sciences or have employed a person who is qualified as such.  At this point the importer is 
prepared to present an application for a license at the Directory of 
Pharmaceutics in the Ministry of  Health.  The request for a 
license to import must include the list of medicines to be 
imported, the international collective name (INN) and the 
commercial name, the quantity to be imported for each separate medicine, and the Albanian CIF price.  Upon completion of this 
procedure, the import marketing authorization issued (which only 
serves as a document to check the quality and quantity of the medicine) by the Ministry of Health and is presented to the 
customs authority.  If the imported product is what is specified in 
the import license, then the import marketing authorization is 
automatic and shall be issued in five working days.  There are no 
substantive criteria to deny authorization to import; only when the abovementioned conditions are not met will authorization be 
denied  
 WT/ACC/SPEC/ALB/6/Rev.1 
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
  Process for registeri ng a pharmaceutical product :  The substantive 
requirements for the registration of medicaments are as defined in 
the regulation "On the Registration of Drugs in the Republic of 
Albania".  To process to register a medicament, the requirements 
which apply to natural and juridical subjects whether the product is produced in Albania or abroad, includes the presentation of the 
Free Sale Certificate in the country  of origin; a confirmation that 
the drug is manufactured accordi ng to the Good Manufacturing 
Practices; the presentation of  chemical, pharmaceutical and 
biological documentation, stability test, toxicological and 
pharmacological and clinical documentation; and a quality control is performed by the National Center of Drugs Control.  
Every pharmaceutical manufacturer must present samples of the 
drugs that its wants to register.  If any one of the documentation is not presented or if the drug fails the quality control, then the 
registration will be refused.  The regulation does not provide for 
an appeal process. 
12.00  Seeds and seedlings 
Law: "On Seeds and Saplings", Number 7659, dated 
12.01.1993. 
Decision of Council of Ministers: "The Setting up of 
the State Entity of Seeds and Saplings (SESS)", 
Number 447, dated  3.09.1993 
Decision of Council of Ministers  “On Approving the 
Regulations for the Production, Reproduction, 
Treatment, Assessment, Trade, Control of Seeds and Saplings and for Protection and Treatment of Genetic 
Material of Plants”, Number 552, dated 14.11.1994 
 To control the import of seeds and 
seedlings to ensure the quality of seeds 
and saplings through controls over the whole import process.  To protect the 
environment, and the protection and 
safety/health of humans, animals and plants.  To adhere to requirements of 
international organizations to which 
Albania is a signatory.  Licenses are issued by the State Entity of Seeds and Seedlings 
based on the regulation of the Law on Seeds and Saplings” 
Number 7659, dated January 12, 1993.  Licenses are issued to juridical persons, domestic or foreign, who possess the necessary 
technical qualification (university diploma in agronomy) or have 
employed in their companies such a qualified person.  Licenses are annual and are automatically renewable each year. Prior to 
applying for a license to import seeds and seedlings, a person or 
enterprise must be registered in the Court of first degree to become a natural or juridical subj ect, and then to be registered 
with the proper Tax Office.  Th e tax registration process also 
registers the individual/firm as having the right to engage in 
specific trading activity (i.e., import, export, transport or other 
marketing activities for seeds and seedlings).  
  WT/ACC/SPEC/ALB/6/Rev.1
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
 
 
  
 Having been registered with the Court and Tax Office, natural 
or juridical subjects can apply for a license to import seeds and seedlings into Albania. To apply for a license, natural or juridical 
subjects must have graduated from the Faculty of Agronomy or 
have employed a person who is qualified as such.  At this point the importer is prepared to present an application for a license at 
the State Entity for Seeds and Seedlings in the Ministry of 
Agriculture and Food.  To obtai n the license, an importer must 
supply the required technical information of the seeds: technical 
data of the seeds contingent, the name of the seed, the origin, and 
the quantity and the quality of the seed. Only seeds registered in the official catalogue of the State Entity 
of 
Seeds and Seedlings and that satisfy Albanian standards are permitted to be imported to Albania.  The Albanian standards, in 
addition to the international standards such as the DHS test 
(distinguishing, homogeneity and stability) test include also a test 
of the agronomic and technological value (Value for Cultivation 
and Use).  The procedures of registration are identical for 
Albanian and foreign subjects. 
There are occasions when seeds are imported under emergency 
measures only by a proposal from the State Entity for Seeds and 
Seedlings (with the approval of the Ministry of Agriculture and 
Food).  Seeds and seedlings which are not registered in the Albanian Catalogue may be registered, on the condition that they 
are compatible with the climatic and soil conditions of Albania.  
Registration is applied on a non-discrimination basis.  
 WT/ACC/SPEC/ALB/6/Rev.1 
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
31.00 Pesticides 
Decision of the Council of Ministers: "On Fertilizers", 
Number 584, dated 6/12/1993 
 
  To control the import of pesticides as 
well as the controlling of the whole import process.  To protect the 
environment, and the protection and 
safety/health of humans, animals and plants.  To adhere to the requirements 
of international organizations to which 
Albania is a signatory. Prior to applying for a license to import pesticides, a person or 
enterprise must be registered in the Court of first degree to become either a natural or juri dical subject, and then to be 
registered with the proper Tax Of fice.  The tax registration form 
also registers the individual/firm as having the right to engage in specific trading activity (i.e., import, export, transport or other 
marketing activities for pesticides).  Once registered to engage in 
importing activity, the importer must go to the Ministry of Agriculture and Food, Directory of Plant Protection Services 
(DPSS) to declare the pesticides to  be imported.  If the pesticide 
is registered with the Albanian State Commission for the Registration of Pesticides (ASCRP), then 
an import license is issued by the DPSS in accordance with the 
Agreement on Import Licensing Procedures of GATT 1994.  The license, issued within two months, specify the time limit as 
required by the importer up to one year maximum and are issued 
to an individual who has graduated from the Faculty of 
Agronomy or a firm which employs such a person.  If a pesticide 
is not registered in Albania, then the pesticide may  not be imported. 
The requirements for registering a pesticide with the ASCRP are 
the same for local and foreign products and are based on the same criteria as the EU's Directive No. 91/414 EEC dated 15.7.1991, 
Annex 2.  The requirements of this Directive were sanctioned by 
the Albanian government in the Decision of the Council of Ministers No. 584, dated 6.12.1993.  Registration requirements 
comply 
with the IPPC (International Plant Protection Convention).  Every year the requests for registration of new pesticides are attached to 
the Ministry of Agriculture and Food's special publication on the 
registered pesticides (Article 62 of the Decision of the Council of 
Ministers No. 584, dated 06.12.1993).  
The licensing process and applica tion for concessions is identical 
for natural and juridical subjects.  The information on the procedures of licensing, application for the concession as well as 
the registration of pesticides are available at the offices of the 
central and local administration of the Ministry of Agriculture 
and Food.  
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
01.00 - 02.00 Live animals and products 
Law on “ Albanian Veterinary Service”, Number 7674, dated 23.2.1993 
Law on "Food", Number 7941, dated 31.05.1995. To control the import of live animals 
and products, to protect the integrity of breeding stocks, the protection of the 
environment and safety/health of 
humans, animals and plants.  To adhere to the requirements of the 
international organizations to which 
Albania is a signatory. Prior to applying for a license to import livestock, a person or 
enterprise must be registered in the Court of first degree to become a natural or juridical subj ect, and then to be registered 
with the proper Tax Office.  Th e tax registration process also 
registers the individual/firm as having the right to engage in specific trading activity (i.e., import, export, transport or other 
marketing activities related to livestock or livestock products).   
Once the individual/firm is so registered, then the next step is to go to the Ministry of Agricultu re and Food, Directory of the 
Albanian Veterinary Service, to r eceive a license (i.e., to receive 
"permission" as is stated the Law No. 7074, dated 23.02.1993).  The license must be issued to all juridical and natural subjects, 
local and foreign, who are regi stered to import livestock or 
livestock products and who present the Certificate of the Origin 
and the Certificate of Sanitation.  Licenses are valid for up to 2 
months time and specify the quantity to be imported (only as a 
means for data collecting and statistical information).  Each time 
livestock or livestock products are to be imported, the importer 
must go the Ministry of Agricultu re and Food to receive a new 
license.  Live animals imported are subject to quarantine 
conditions which are in conformity with the International 
Organization of Epizotive (IOE). For importing livestock for breeding purposes which are not 
already registered as a breed in Albania, in addition to the above 
criteria, the importer must have another document from the Central Commission of the Improvement of Breeds (CCIB), 
Ministry of Agriculture and Food, which will allow the animals to 
enter Albania.  The CCIB takes into consideration the regional policy of breeds in Albania as well as the program of genetic 
improvement of such breeds.  Th e CCIB allows or does not allow 
a certain breed based on the breed's characteristics and their ability to adapt to local conditions.  In cases where the CCIB 
refuses the request to import, the importer has the right to appeal 
the decision in the court of first de gree.  In the case of a registered 
and known breed in Albania, a document from the CCIB is not 
necessary.  
 WT/ACC/SPEC/ALB/6/Rev.1 
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
03.00 Fish and seafood products 
Law on “ Albanian Veterinary Service”, Number 7674, dated 23.2.1993 
Law on “ Fisheries and Aquaculture”, 
Number 7908, dated 05.04.95 Law on "Food", Number 7941, dated 31.05.1995 To control the import of fish and 
seafood products, to protect the integrity of stocks, the protection of 
the environment and safety/health of 
humans, animals and plants.  To adhere to the requirements of the 
international organizations to which 
Albania is a signatory. Prior to applying for a license to import fish and seafood 
products, a person or enterprise must be registered in the Court of first degree to become a natural or juridical subject, and then to 
be registered with the proper Tax Office.  The tax registration 
form also registers the individual/firm as having the right to engage in specific trading activity  (i.e., import, export, transport 
or other marketing activities for fish and seafood products).   
Once the individual/firm is so registered, then the next step is to go to the Ministry of Agricultu re and Food, Directory of the 
Albanian Veterinary Service, to r eceive a license (i.e., to receive 
"permission" as is stated the Law No. 7074, dated 23.02.1993).  The license must be issued to all juridical and natural subjects, 
local and foreign, who are registered to import fish or seafood 
products and who present the Certificate of the Origin and the Certificate of Sanitation.  Licenses are valid for up to 2 months 
time and specify the quantity to be imported (only as a means for 
data collecting and statistical information).  Each time fish or 
seafood products are to be impo rted, the importer must go the 
Ministry of Agriculture and Food  to receive a new license.    
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
04.07 Eggs  
Law on “ Albanian Veterinary Service”, Number 7674, dated 23.2.1993 
Law on "Food", Number 7941, dated 31.05.1995 To control the import of eggs to 
protect safety/health of humans. Prior to applying for a license to import eggs, a person or 
enterprise must be registered in the Court of first degree to become a natural or juridical subj ect, and then to be registered 
with the proper Tax Office.  Th e tax registration process also 
registers the individual/firm as having the right to engage in specific trading activity (i.e., import, export, transport or other 
marketing activities for eggs).   
Once the individual/firm is so registered, then the next step is to go to the Ministry of Agricultu re and Food, Directory of the 
Albanian Veterinary Service, to r eceive a license (i.e., to receive 
"permission" as is stated the Law No. 7074, dated 23.02.1993).  The license must be issued to all juridical and natural subjects, 
local and foreign, who are registered to import eggs and who 
present the Certificate of the Origin and the Certificate of 
Sanitation.  Licenses are valid for up to 2 months time and specify 
the quantity to be imported (only as a means for data collecting 
and statistical information).  Each  time eggs are to be imported, 
the importer must go the Ministry of Agriculture and Food to 
receive a new license.     
 WT/ACC/SPEC/ALB/6/Rev.1 
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
51.00 Wool 
 Law on “ Albanian Veterinary Service”, Number 7674, dated 23.2.1993 
 
 To control against contagious diseases 
thereby protecting safety/health of animals. Prior to applying for a license to import wool, a person or 
enterprise must be registered in the Court of first degree to become a natural or juridical subj ect, and then to be registered 
with the proper Tax Office.  Th e tax registration process also 
registers the individual/firm as having the right to engage in specific trading activity (i.e., import, export, transport or other 
marketing activities for wool).   
Once the individual/firm is so registered, then the next step is to go to the Ministry of Agricultu re and Food, Directory of the 
Albanian Veterinary Service, to r eceive a license (i.e., to receive 
"permission" as is stated the Law No. 7074, dated 23.02.1993).  The license must be issued to all juridical and natural subjects, 
local and foreign, who are registered to import wool and who 
present the Certificate of the Origin and the Certificate of 
Sanitation.  Licenses are valid for up to 2 months time and specify 
the quantity to be imported (only as a means for data collecting 
and statistical information).  Each time wool is to be imported, the 
importer must go the Ministry of Agriculture and Food to receive 
a new license.   
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Products Requiring Import Licensing, By Type: Justification, Licensing And Other Requirements  
Article And Description By Harmonized Code Or As 
Described By Law Or International Convention  
Justification/Rationale Of The 
Restriction  
Process To Obtain License, Type Of License, And Duration 
41.00 Unprocessed leather 
Law on “ Albanian Veterinary Service”, Number 7674, dated 23.2.1993 
 
 To control against contagious diseases 
thereby protecting safety/health of animals. Prior to applying for a license to import leather, a person or 
enterprise must be registered in the Court of first degree to become a natural or juridical subj ect, and then to be registered 
with the proper Tax Office.  Th e tax registration process also 
registers the individual/firm as having the right to engage in specific trading activity (i.e., import, export, transport or other 
marketing activities for leather).   
Once the individual/firm is so registered, then the next step is to go to the Ministry of Agricultu re and Food, Directory of the 
Albanian Veterinary Service, to r eceive a license (i.e., to receive 
"permission" as is stated the Law No. 7074, dated 23.02.1993).  The license must be issued to all juridical and natural subjects, 
local and foreign, who are registered to import leather and who 
present the Certificate of the Origin and the Certificate of 
Sanitation.  Licenses are valid for up to 2 months time and specify 
the quantity to be imported (only as a means for data collecting 
and statistical information).  Each time leather is to be imported, 
the importer must go the Ministry of Agriculture and Food to 
receive a new license.     
 WT/ACC/SPEC/ALB/6/Rev.1 
Page 112   
Prohibitions on Importable Products, by Type : Justification, and Phase-out Period  
Article and Description by Harmonized Code or as 
Described by Law or International Convention  
Justification/Rationale of the 
Prohibition  
Phase-out Period 
 Dangerous waste: Dangerous waste are defined as: 
toxic corrosive, residual  waste from explosives, 
carcinogines and radioactives , catalysts that endanger 
human, plant and animal and the environment, (see complete list in WT/ACC/ALB/25, pages 6-7) 
Decision of the Council of  Ministers: "On Dangerous 
and Non-dangerous Waste", Number 26, dated 31.1.94 
  
To protect human, plant, and animal 
health and the environment.  
To make changes to this list of products (or a change in the 
definition of dangerous waste) the Council of Ministers must 
make an approval.  The reported changes can be made available 
by the Ministry of Health an d the Committee of Environmental 
Protection. 
In the case where an importer is found to be receiving dangerous 
waste (i.e., prohibited waste) rather than non-dangerous waste, 
then the importer is required to obtain an export license provided 
by the Committee for Environmental Protection so that these prohibited wastes can be returned to the country of origin. 
Military poisoning substances, chemical weapons, 
other strong poisons, and the devices for the protection 
from such substances and chemicals International Convention on the Prohibition of the 
Development, Production, Storage, and Usage of 
Chemical Weapons and Their Extermination (List 
Number 2 and 3) which has been ratified by the 
Albanian Government.  
To protect the national security of the 
Republic.  
There is no specific law on the tr ade of Chemical Weapons.  The 
government is in the process of developing legislation to define the trade regime of such products.  The Ministry of Defence will 
be the responsible authority for such matters. 
Narcotic Drugs and Psychotropic Substances, refer to 
the list provided in WT/ACC/ALB/25, pages 6-7, and 
the Convention on “Narcotic Drugs”  1961,  
Convention on “Psychotropic Substances” 1971, and the Adjournments of 1993. Annex 1 of this table titled  
“ List of Narcotic Drugs and Psychotropic Substances 
Prohibited to enter, to be produced or used in Albania” .Law: "On Narcotic Drugs and Psychotropic 
Substances, Number 7975, dated 26 July 1995.  This law was drafted in accordance  with the Conventions of 
1961and 1971,and the Adjournments of 1993. To control the importing of narcotics in 
the territory of Republic of Albania.  
To protect the life and health of the 
population and to adhere to international conventions to which 
Albania is a signatory.  
  
  WT/ACC/SPEC/ALB/6/Rev.1
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Animal products of the infected and penalized 
countries by OIE (Organization International Epizotive); pesticides which are not registered in the 
Albanian catalogue on pes ticides; seeds and seedlings 
which are not certified and registered in the Albanian catalogue .Law: "On Seeds and Saplings", Number 
7659 dated 12.01.1993. 
Decision of Council of Ministers Nr.447 dated  
3.09.1993 on “The setting up of State Entity of Seeds 
and Saplings”. 
Decision of Council of Ministers: "On approving of the 
Regulatory” on “ Production, Reproduction, Treatment, 
Assessment, Trade, Control of Seeds and Saplings and 
for Protection and Treatment of Genetic Material of 
Plants" , Number 552, dated 14.11.1994    
To control the importing of infecting 
products in the Albanian territory, in order to protect human, plant, and 
animal and the environment.  To 
protect the life and health of the population and to adhere to 
international organization to which 
Albania is a signatory.  
 
 
 
 
 
__________