Bolivia WT/TPR/S/57
Page 27
III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) OVERVIEW
1. Since 1993, Bolivia has continued to consolidate its generally outward-looking trade regime,
avoiding the use of quantitative trade barriers and high or dispersed tariffs.  As a result, a largely
undistorted set of formal trade instruments now appl ies to most activities.  However, a wide gap
persists between policy objectives and their implementation, preventing Bolivia from reaping the fullbenefits of the trade and other economic reforms it has undertaken in recent years.
2. Bolivia maintains a nearly uniform applied tariff on imports, with only ad valorem  duties in
use:  a 10% rate applies to all products except for 429 lines (mostly capital goods) on which a rate of
5% is applied and on 5 items (books) rated at 2%.  The most significant domestic tax affecting
imports is a 14.94% value added tax applied uniformly to all products and services.  The inherentresource allocation, transparency and predictability advantages offered by this tax structure is
somewhat undermined by the significant gap between applied tariffs and tariff bindings (40% on
virtually all products), as well as by possible trade diversion arising from Bolivia's growing
participation in regional agreements.  The present tariff regime is mostly the result of autonomous
initiatives;  the Uruguay Round had only a minor effect on Bolivia's applied tariffs or bindingcommitments.
3. Certain WTO Agreements, in particular on trad e defence and customs valuation, have not yet
been fully incorporated in Bolivia's legislation.  The authorities are reviewing legislation to bring it
into conformity with WTO obligations;  in this c ontext Bolivia has agreed to bring its intellectual
property legislation into line with the TRIPS Agreement in 1999.  Bolivia has never taken
anti-dumping or safeguard actions;  consolidating the institutional framework required to do so might
be a lower priority than addressing administrative weaknesses in other areas, including in theseemingly non-uniform application of technical requirements.  Bolivia has not signed the plurilateral
Agreement on Government Procurement, and favours national suppliers in public tenders.
4. Bolivia has export prohibitions on some unprocessed forestry products.  Bolivia's
pre-shipment inspection system for exports was eliminated in April 1999.  Tax refund schemes
support Bolivian exports but the budgetary revenue forgone is modest and does little to overcome thedifficulties inherent to producers and exporters in, among other things, the poor infrastructure and
competition from illegal activities.  The Bolivian au thorities are seeking to bring these problems under
control, including through the reform of the customs administration, and the expected adoption of a
new custom law.  New  competition policy provisions at the sectoral level are also important steps to
ensure that high market concentration in certain activities does not impair the thrust to achieve greatereconomic efficiency.
(2) M
EASURES DIRECTLY AFFECTING IMPORTS
(i) Registration and documentation
5. Bolivia's basic import documentation and requirements have remained unchanged since its
previous Trade Policy Review in 1993.  Importers are required to register with the National Chamberof Commerce, the Internal Revenue Service, the Vi ce-Ministry of Industry and Internal Trade, the
National Directory of Commerce, and local municipalities.  This and other aspects of customs
procedures may change with the introduction of the customs law, which the authorities are currently
preparing.WT/TPR/S/57 Trade Policy Review
Page 28
6. All shipments require the following documents to be presented to customs for clearance and
duty payment:  a commercial invoice (in Spanish or translated);  an insurance certificate;  a packing
list;  a certificate of origin; a bill of lading, or an air bill or parcel post receipt in the case of air cargo
or parcel post shipment; and a certificate of conformity.  Special documentation, such as sanitary and
technical certificates or special labels, is required for some products (section (vii) below).
(ii) Customs valuation and inspection
7. No major changes have been made to customs valuation and inspection practices since 1993.
The value of imported goods is determined on the ba sis of certificates issued by the two inspection
companies appointed by the Bolivian authorities, Inspectorate and Société Générale de Surveillance,
which, the authorities indicated, set the value of imported goods on the basis of international market
prices.  The c.i.f. border value is used for goods reaching the country by land, and the c.i.f. customsvalue applies to merchandise arriving by air, in which case only 25% of the air freight cost is included
in the dutiable value.
8. The authorities have indicated that minimum import prices are used only for the valuation of
second-hand imported cars.  Depreciation tables, based on international prices were used to determine
the value of smuggled cars legalized during the amnesty period between 15 June 1998 and19 February 1999, granted under Ministerial Resolution No. 819/98 by the Ministry of Finance.
9. Bolivia has delayed the application of the Agreement on Implementation of GATT
Article VII (the Customs Valuation Agreemen t), which allows developing countries until
1 January 2000 to adapt their valuation procedures to a "transaction value" basis.  The Bolivian
authorities have indicated that they plan to  implement the Customs Valuation Agreement by
September 2000.
1
10. All imports are subject to customs inspection depending on their f.o.b. value: arrival
inspection is used for those under US$1,000;  preshipment or arrival inspection is applied, at the
importer's discretion, on imports between US$1,001 and US$12,000;  while preshipment inspection is
used for imports over US$12,000.  For controlled substances, preshipment and arrival inspection are
required.2  Some products are subject to price and quantity controls but not to quality inspection, e.g.
certain chemicals, pharmaceuticals and alcoholic beverages, while other products are exempted fromprice, quality and quantity controls, e.g. donations and goods subject to special regulations.
11. Preshipment inspection normally covers quality, quantity, price, customs classification and
import eligibility.  Penalties are applied when products that are subject to preshipment inspection are
not presented for inspection in the country of export.  When inspection is satisfactory a certificate of
conformity is issued.  Inspection fees amount to 1.92% of the f.o.b. value of the merchandise.
(iii) Rules of origin
12. Bolivia uses rules of origin only in the context of preferential arrangements.  Specific rules
apply to trade with MERCOSUR and Mexico, as defined in the respective agreements (LAIA
Economic Complementarity Agreements Nos. 36 and 31).  The general LAIA regime, Resolution
No. 78, applies to trade with Chile and Cuba (L AIA Economic Complementarity Agreements Nos. 22
and 34).
                                                     
1 WTO document G/VAL/W/25, 24 April 98.
2 Law No. 1008 of the Regime of Coca and Controlled Substances of 19 July 1998.Bolivia WT/TPR/S/57
Page 29
13. Until 1997, trade within the Andean Community was governed by LAIA's rules of origin and
by some provisions in Andean Decisions 231 and 293.  The formation of a customs union in 1993 led
to changes in those rules through the adoption of Decisions 416 and 417 in July 1997. The rules of
origin thus defined grant Andean origin to pr oducts that, incorporating non-Andean raw materials,
undergo a tariff classification change;  alternatively, a value-added criterion may be used, which
requires that the c.i.f. value of non-native materials do not exceed 50% of the f.o.b. value of the finalproduct for exports from Colombia, Peru and Venezuela, or 60% for exports from Bolivia and
Ecuador.  The value-added criterion is also applied to goods that are the product of an assembly
operation.
14. Andean Decision 416 also established complementary rules on re-exports and direct shipment
from third countries, and reinforced the mechanism to handle disputes concerning rules of origin.
Andean Decision 417, opened the possibility of establishing special rules of origin for specific
sectors.
(iv) Import levies and charges
15. Bolivia maintains an even MFN tariff structure: the average MFN applied tariff is 9.7%;
there are neither peaks nor tariff escalation.  The value-added tax rate is also uniform.  As described inTable III.2,  total taxes on imports (including border and internal taxes) range from about one third of
the f.o.b. value of an imported good.  This offers a relatively non-distortionary framework, which is
somewhat undermined by the growing number of ta riff preferences:  imports from preferential
partners represented around 45% of total imports in 1997.  Although the tax burden does not appear
heavy relative to many other countries, it has nevertheless encouraged tax evasion;  customs and
domestic tax authorities are making efforts to bring this problem under control.
(a) Tariffs
Structure
16. Bolivia has adopted the common tariff structure of the Andean Community (NANDINA),
which is based on the Harmonized System of Comm odity Description and Coding (HS).  Bolivia's
tariff  consists of 6,619 eight-digit lines, as of 1 January 1999.  The vast majority of lines, 93.4% of
the total, are subject to a uniform ad valorem  tariff of 10% based of the c.i.f. value.  As detailed in
Table III.1, lower ad valorem  rates apply to capital goods, taxed at 5% (429 tariff lines)
3;  and books
and publications, taxed at 2% (5 lines).
17. Article 2 of Andean Decision No. 370, November  1994, allows Bolivia to maintain a national
external tariff different from the Andean Common External Tariff, which provides for tariff rates
generally higher that those currently applied by Bolivia.
18. Under certain conditions, defined in Chapter IX of Supreme Decree No. 24440, international
passenger baggage is exempt from import taxes.  Duty exemptions also apply to donations and
external aid.4
                                                     
3 The list of capital goods is defined in Supreme Decrees Nos. 21660, 21910, 21979, 22151, 22617,
23766 and 24536.
4 Supreme Decree No. 22225, 16 June 1989.WT/TPR/S/57 Trade Policy Review
Page 30
Table III.1
MFN tariff rates other than 10%, 1998
(Per cent)
Lines atMFN
Tariff Total ofAverage
tariff rate Sharec
HS
headingDescription 2% 5%a(%) linesb(%) (%)
0102 Live bovine animals 2 5.0 3 6.7 66.7
Printed books and newspapers
4901 Printed books, brochures, leaflets and similar printed matter 3 2.0 3 2.0 100.0
4902 Newspapers, journals and periodicals 2 2.0 2 2.0 100.0
Iron or Steel articles
7302 Railway or tramway track construction material of iron or steel 5 5.0 5 5.0 100.0
7308 Structures 4 5.0 7 7.1 57.1
7309 Reservoirs, tanks, vats and similar containers for any material 1 5.0 1 5.0 100.0
7326 Other articles of iron or steel 1 5.0 5 9.0 20.0
Machinery and mechanical appliances
8402 Steam or other vapour generating boilers 4 5.0 5 6.0 80.0
8405 Producer gas or water gas generators 1 5.0 2 7.5 50.0
8406 Steam turbines and other vapour turbines 2 5.0 4 7.5 50.0
8409 Parts suitable for use solely or principally with engines 1 5.0 15 9.7 6.7
8410 Hydraulic turbines, water wheels, and regulators. 3 5.0 4 6.3 75.0
8412 Other engines and motors 4 5.0 10 8.0 40.0
8413 Pumps for liquids 10 5.0 23 7.8 43.5
8414 Air or vacuum pumps, air or other gas compressors and fans 10 5.0 18 7.2 55.6
8415 Air conditioning machines 5 5.0 11 7.7 45.5
8417 Industrial or laboratory furnaces and ovens 5 5.0 6 5.8 83.3
8418 Refrigerators, freezers and other refrigerating or freezing equipment 4 5.0 16 8.8 25.0
8419 Machinery, plant or laboratory equipment 15 5.0 22 7.0 68.2
8420 Calendering or other rolling machines, other than for metals or glass 2 5.0 4 7.5 50.0
8421 Centrifuges and filtering or purifying machines 7 5.0 22 8.4 31.8
8422 Dish washing machines 6 5.0 9 6.7 66.7
8423 Weighing machinery 7 5.0 10 6.5 70.0
8424 Mechanical appliances for projecting 1 5.0 10 9.5 10.0
8425 Pulley tackle and hoists other than skip hoists 6 5.0 11 7.3 54.5
8426 Ships' derricks; cranes; mobile lifting frames 13 5.0 14 5.4 92.9
8428 Other lifting, handling, loading or unloading machinery 12 5.0 15 6.0 80.0
8429 Self-propelled bulldozers, angledozers, graders, levellers, scrapers 8 5.0 8 5.0 100.0
8430 Other moving, grading, levelling, scraping, excavating, tamping 13 5.0 13 5.0 100.0
8432 Agricultural, horticultural or forestry machinery 8 5.0 10 6.0 80.0
8433 Harvesting or threshing machinery 11 5.0 18 6.9 61.1
8434 Milking machines and dairy machinery 1 5.0 3 8.3 33.3
8435 Presses, crushers and similar machinery 1 5.0 2 7.5 50.0
8436 Other agricultural, horticultural, forestry, poultry-keeping machines 8 5.0 11 6.4 72.7
8437 Machines for cleaning, sorting or grading seed 8 5.0 10 6.0 80.0
8438 Machinery, not specified or included elsewhere in this Chapter 9 5.0 12 6.3 75.0
8439 Machinery for making pulp of fibrous cellulosic material 3 5.0 5 7.0 60.0
8440 Book-binding machinery, including book-sewing machines 1 5.0 2 7.5 50.0
8441 Other machinery for making up paper pulp, paper or paperboard 3 5.0 6 7.5 50.0
8443 Printing machinery, including ink-jet printing machines 7 5.0 12 7.1 58.3
8444 Machines for extruding, drawing, texturing or cutting man-made textile 1 5.0 1 5.0 100.0
8445 Machines for preparing textile fibres 9 5.0 9 5.0 100.0
8446 Weaving machines 4 5.0 4 5.0 100.0
8447 Knitting and stitch bonding machines 3 5.0 6 7.5 50.0
8449 Machinery for the manufacture or finishing of felt 1 5.0 2 7.5 50.0
8451 Machinery for washing 4 5.0 10 8.0 40.0
8452 Sewing machines 2 5.0 7 8.6 28.6
8453 Machinery for preparing, tanning or working hides, skins or leather 3 5.0 4 6.3 75.0
8454 Converters, ladles, ingot moulds and casting machines 2 5.0 4 7.5 50.0
8455 Metal-rolling mills and rolls therefor 3 5.0 5 7.0 60.0
8456 Machine-tools for working any material by removal of material 5 5.0 5 5.0 100.0
8457 Machine centres, and other construction machines for working metal 1 50. 3 8.3 33.3
8458 Lathes (including turning centres) for removing metal 2 5.0 9 8.9 22.2
8459 Machine-tools for drilling 3 5.0 14 8.9 21.4
8464 Machine-tools for working stone, ceramics, concrete and asbestos-cement 3 5.0 3 5.0 100.0
8465 Machine-tools 22 5.0 22 5.0 100.0
Table III.1 (cont'd)Bolivia WT/TPR/S/57
Page 31
Lines atMFN
Tariff Total ofAverage
tariff rate Sharec
HS
headingDescription 2% 5%a(%) linesb(%) (%)
8467 Tools for working in the hand, pneumatic or hydraulic 2 5.0 12 9.2 16.7
8468 Machinery and apparatus for soldering, brazing or welding 2 5.0 5 8.0 40.0
8474 Machinery for sorting, screening, separating, washing and crushing 11 5.0 16 6.6 68.8
8475 Machines for assembling electric or electronic lamps, tubes or valves 3 5.0 4 6.3 75.0
8477 Machinery for working rubber or plastics 8 5.0 9 5.6 88.9
8478 Machinery for preparing or making up tobacco 1 5.0 3 8.3 33.3
8479 Machines and mechanical appliances 9 5.0 16 7.2 56.3
8480 Moulding boxes for metal foundry; mould bases; moulding patterns 9 5.0 9 5.0 100.0
Electrical machinery and equipment
8501 Electric motors and generators 17 5.0 43 8.0 39.5
8502 Electric generating sets and rotary converters 12 5.0 17 6.5 70.6
8504 Electrical transformers, static converters 7 5.0 20 8.3 35.0
8507 Electric accumulators 1 5.0 9 9.4 11.1
8514 Industrial or laboratory electric 5 5.0 6 5.8 83.3
8532 Electrical capacitors, fixed, variable or adjustable 8 5.0 9 5.6 88.9
Railway equipment
8601 Rail locomotives powered from an external source of electricity 2 5.0 2 5.0 100.0
8604 Railway or tramway maintenance or service vehicles 2 5.0 2 5.0 100.0
8606 Railway or tramway goods vans and wagons, not self-propelled. 6 5.0 6 5.0 100.0
Tractors and special motor vehicles
8701 Tractors 4 5.0 4 5.0 100.0
8704 Motor vehicles for the transport of goods 20 5.0 33 7.0 60.6
8705 Special purpose motor vehicles, other than those principally designed 7 5.0 7 5.0 100.0
8706 Chassis fitted with engines 2 5.0 4 7.5 50.0
8716 Trailers and semi-trailers 4 5.0 8 7.5 50.0
8802 Other aircraft 3 5.0 8 8.1 37.5
Measuring equipment and apparatus
9015 Surveying,  hydrographic and oceanographic instruments 1 5.0 10 9.5 10.0
9026 Instruments and apparatus for measuring or checking the flow, level, etc. 1 5.0 13 9.6 7.7
9031 Other measuring or checking instruments, appliances and machines 2 5.0 14 9.3 14.3
a Frequency of lines in that HS heading for which the tariff rate is either 2% or 5%.  This represents a total of 434 tariff lin es.
b Total number of lines in Bolivia's customs tariff for that HS category.
c Proportion of items in that HS that have a tariff rate of 2% or 5%.
Source : WTO Secretariat estimates based on data provided by the Bolivian Authorities.
Tariff bindings
19. Bolivia has bound its tariff lines at a uniform ad valorem  ceiling rate of 40%, except for
sixteen items bound at a 30% (mostly capital goods in HS Chapter 84).5  Current bindings are largely
identical to those Bolivia maintained before th e Uruguay Round.  Bound rates are significantly higher
than applied tariffs, augmenting the scope for duty increases and thus potentially detracting from the
inherent certainty in Bolivia's evenly applied tariff.
20. In accordance with the Decision on Procedures to Implement Changes in the Harmonized
System, Bolivia has modified and rectified its GATT Schedule of Tariff Concession.6  The application
of the provisions of Article II of GATT 1994 was suspended until 30 April 1999 for the purpose of
                                                     
5 Schedule LXXXIV, GATT document L/6562, 16 August 1989, and WTO Document WT/L204,
16 January 1998.
6 GATT document L/6905, 20 September 1991, and WTO document WT/L204, 16 January 1998.WT/TPR/S/57 Trade Policy Review
Page 32
enabling Bolivia to implement the recommended amendments to the Harmonized System
nomenclature.7
Tariff preferences
21. According to the authorities, all products originating in the Andean Community receive
duty-free treatment.  Bolivia also grants certain preferences to  Chile, Cuba, MERCOSUR and
Mexico (Chapter II(3)(ii)).
Concessional entry
22. Under the Temporary Import Regime, the payment of import duties and internal taxes is
suspended for goods entering Bolivia for a limited period and for a defined use.8  Permits for
temporary entry are issued for a 90-day period, which may be extended once, under certain
conditions.  Goods benefiting from this regime include samples;  vehicles, machines, instruments andother accessories intended for spectacles and public recreation;  machinery and equipment for repair;
equipment and apparatus for scientific, sport or cultural events;  equipment for petroleum prospection
and exploration; and aircraft.  Details on export-oriented concessional programmes are provided in
section (3) below.
(b) Other levies and charges
23. Imports into Bolivia are subject to import char ges, other than duties, such as inspection or
customs warehouse fees.  Private inspection companies charge 1.92% of the f.o.b. value of
merchandise. A 0.5% customs warehouse fee is charged on the c.i.f. value of merchandise remaining
in warehouses for up to 30 days;  thereafter a monthly 2% demurrage fee is charged.
9  Bolivia applies
no variable import levies.  The authorities indicated that other charges are applied.
24. The main internal tax applied in Bolivia is the value-added tax (VAT) levied equally on
domestic and imported products.  The VAT on imports is levied on the customs value of imports plusimport duties and other additional import charges.  The VAT regime has not been modified
since 1993;  its legal rate is 13% of the tax-inclusive sale price, which, for imports, is equivalent to an
effective applied rate of 14.94% of the c.i.f. value plus import duties and charges.
25. Another internal tax, the Specific Consum ption Tax (ICE) is levied on imported and
domestically produced goods;  rates are adjusted every year by the tax administration.  The ICE isapplied on an ad valorem  basis to (rate between parentheses) motor vehicles (10% or 18% depending
on their load capacity), and tobacco products (50%);  specific rates apply to beverages, ranging from
Bs 0.17 per litre for non-alcoholic beverages to Bs 1.36 for beer, wines and spirits.  The locally
produced alcoholic beverage Chicha de Maíz  is taxed at the lower rate of Bs 0.35 per litre.
26. Table III.2 illustrates the structure of all taxes and charges affecting imports into Bolivia for
three representative imported goods:  malt, moulding boxes for metal founding, and motor cars.  Total
charges, including fees and internal taxes, range from 32% to 63% of the f.o.b. value of the imported
goods.
                                                     
7 WTO Document WT/L/281, 24 October 1998.
8 Supreme Decree No. 24440, 13 December 1996.
9 Customs warehouse fees are defined in Resolution 550 of 10 July 1995.Bolivia WT/TPR/S/57
Page 33
Table III.2
Structure of import charges in Bolivia
Malt
(HS 1107)Moulding boxes for metal founding
(HS 8480)Motor cars
(HS 8703)
  Description % Value % Value % Value
  1. Value f.o.b. 100.00 100.00 100.00
  2. Freighta5 5.00 5 5.00 5 5.00
  3. Insuranceb2 2.00 2 2.00 2 2.00
  4. Value c.i.f. 107.00 107.00 107.00
  5. Import duty (on 4) 10 10.70 5 5.35 10 10.70
  6. Inspection fees (on 1) 1.92 1.92 1.92 1.92 1.92 1.92
  7. Customs warehouse (on 4) 0.5 0.53 0.5 0.53 0.5 0.53
  8. Subtotalc120.15 114.80 120.15
  9. Value-added tax (on 8) 14.94 17.95 14.94 16.84 14.94 17.95
  10. Specific Consumption Tax
(on 8+9)-- 1 8 24.86
  11. Wholesale cost 138.00 132.00 163.00
a Default rate applied by the authorities to determine the c.i.f. value of directly imported goods (e.g. accompanied vehicles).
b Rate applied by the authorities to determine the c.i.f. value of goods imported without an insurance certificate.
c Not including fees charged for customs forms (US$50 or US$60 per shipment).
Source : WTO Secretariat.
(v) Import prohibitions
27. Bolivia does not use import prohibitions except for products deemed by the authorities to
cause prejudice to public health, environment or morality.  Prohibited items, as provided by Supreme
Decree No. 24440, are pharmaceuticals and drugs not registered in the country;  spoiled or adulterate
beverages and food products;  diseased animals;  pl ants that contain parasites and germs or declared
harmful by the Ministry of Agriculture;  foreign lottery bills;  used string and rope;  toxic andradioactive materials;  advertisements imitating money or bank certificates;  and postage stamps.
28. Used right-hand drive vehicles transformed to left-hand drive are prohibited.  Other products,
such as refrigerating equipment and air conditioning equipment containing CFC-12, are prohibited
through specific regulations.
(vi) Licensing and authorization
29. Bolivia has a limited list of imports for which prior authorization is required.  Under Supreme
Decree No. 24440, prior import authorization is re quired for arms and explosives and machines to
manufacture them (import licence issued by the Ministry of Defence);  money, and machines to
manufacture it;  postage stamps and bonds (authorization issued by the Ministry of Finance);  primary
school text books (licence issued by the Ministry of Education and Culture); emitting and receivingapparatus, and aircrafts (authorization from the Vice-Ministry of Transport, Communications and
Civil Aviation);  drugs and medicines (authorization from the Ministry of Social Security and Public
Health).  Other licence requirements resulting from technical regulations are described below.WT/TPR/S/57 Trade Policy Review
Page 34
(vii) Technical requirements
(a) Standards, testing and certification
30. Under the single undertaking of the Uruguay Round, Bolivia is party to the WTO Agreement
on Technical Barriers to Trade (TBT Agreement).  With a view to creating a legal framework for the
implementation of this Agreement, the Bolivian Standardization, Metrology, Accreditation and
Certification System (SNMAC) was enacted on 17 February 1997, through Supreme DecreeNo. 24498.
10  The objectives of the SNMAC are to foster the competitiveness and quality of Bolivian
goods and services on national and international markets;  to guarantee human, animal and plant
safety and health, and the protection of the environm ent and consumers;  and to organize and establish
operational guidelines for standardization, metrology, accreditation, testing, certification and all other
activities relating to the quality of products, processes and services.
31. The policy-making body of the SNMAC is the National Quality Council, composed of an
equal number of public and private sector-specifi c representatives.  SNMAC's Executive Commission
is responsible for policy implementation.  The executive bodies of the SNMAC are the Bolivian
Institute of Standardization and Quality (IBNORCA), a private, non-profit body responsible for
standardization;  the Bolivian Institute of Metrology (IBMETRO), a decentralized body responsiblefor administering the national metrology service;  and the recently created Bolivian Accreditation
Organization (OBA), a decentralized, mixed entity responsible for accreditation within the country.
32. IBNORCA operates through technical committees in which any interested part may
participate (private and public sector entities, universities, etc.);  it is a member of ISO and of the
Pan-American Standards Commissi on.  Adoption of voluntary Bolivian Technical Standards (NBs)
involves the preparation of a proposal of the relevant technical committee, publication of the proposed
NB in the press, a 60-day public scrutiny period, and submission of the NB to the Governing Council
for Standardization, followed by final ratification by IBNORCA's Board of Directors.  Among other
functions, the Governing Council is in charge of  supervising the technical committees, maintaining
technical relations with similar national and in ternational institutions, and proposing to IBNORCA's
Board any opportune measure that might promote and develop IBNORCA's activities.
33. The Vice-Ministry of Industry and Internal Trade coordinates and registers the issuance of
technical regulations through the Industrial Development Unit (UDI), however, as stipulated in
Supreme Decree No. 24498 of 17 February 1997, the Vice-Ministry does not oversee the
implementation of the technical regulations.  The compulsory regulations must be based on Bolivian
technical standards or, in their absence, on regional or international standards, or on codes of good
practice.  All entities issuing technical regulation s must notify the UDI in advance so that interested
parties may be informed and the WTO notified.
34. Technical regulations enter into force 60 days after the UDI has been notified.  Provided the
technical regulation is notified to the UDI upon adoption, this period may be disregarded in case of an
emergency involving national security, human, animal and plant safety, or environmental protection.
35. The Bolivian authorities have signed the Code of Good Practice of the TBT Agreement.
11
Since 1995, Bolivia has made twenty notifications of regulations under the TBT Agreement.
                                                     
10 Bolivia's statement on the implementation and administration of the Agreement on Technical
Barriers to Trade is contained in WTO document G/TBT/2/Add.43, 20 January 1998.
11 Transmitted to the Secretariat on 25 March 1999.Bolivia WT/TPR/S/57
Page 35
36. The contact point for holding consultations under the Agreement and the enquiry point for
technical regulations and conformity assessment procedures in Bolivia is the Department of Standards
and Quality in the Vice-Ministry of Industry and Inte rnal Trade, while the enquiry point for technical
standards is IBNORCA.
37. Certain imports are subject to specific technical requirements:  certification from IBNORCA
for goods that for security reasons are packed and used under pressure;  compliance withanti-pollution norms for motor vehicles and engines;  certification from IBNORCA that refrigerating
and air conditioning equipment does not contain CFC-12 as refrigerant.  Import licences are required
for insecticides (issued by the Ministry of Agriculture);  radioactive materials (issued by the
Vice-Ministry of Mining and Metallurgy);  and for several chemical substances.
38. Imports are not required to comply with Bolivian norms unless a specific technical regulation
applies.  The Bolivian authorities have indicated that 10% of domestic norms are identical to
international standards.
(b) Marking, labelling and packaging
39. Special labelling indicating origin and type of merchandise is generally not required for
imports into Bolivia;  retail packages must only show weight or other content measures in anInternational System unit.  Some restrictions apply for health and security reasons, for example labels
on pharmaceutical products must be in Spanish and show the expiry date.  In addition pharmaceutical
products and most food trade marks must be registered in Bolivia prior to importation.
40. A new labelling standard for food products, which is being considered for inclusion in the
draft law on food, was adopted in 1994;  compliance would be compulsory for  the importation and
commercialization of food products.  This standard is based on CODEX rules.
(c) Sanitary and phytosanitary measures
41. Bolivia's phytosanitary legal framework is  provided by the Supreme Decree No. 10283 of
30 May 1972.  The Bolivian notification authority, provided for in the Agreement on the Application
of Sanitary and Phytosanitary Measures, is the National Directorate of Production and Agricultural
Protection.  To date this authority has notified no measures to the WTO.
42. The importation of live animals requires a certificate of origin and health.  A pedigree
certificate is required for animals imported for breeding purposes.  Live plants and seeds require a
sanitary certificate legalized by a Bolivian consulate.
43. The importation of food is subject to the presentation of a sanitary certificate issued by a
laboratory recognized by the Bolivian authorities or a notarized certificate issued by the manufacturer
and legalized by a Bolivian consulate indicating that the product is fit for human consumption.  Wheatflour imports are subject to the presentation of a certificate issued in the exporting country attesting
that the flour has been fortified according to Bolivian regulations.
44. A number of technical and sanitary requirements affecting domestic products and imports
appear to have been adopted by prefectures.  In some cases, prefectural regulations seem to
complement national ones.  For instance, under a regulation issued by the Ministry of Health andSocial Security, importation of used clothes is subject to the presentation of a sanitary and fumigation
certificate issued by the competent authority in the country of origin, while a prefectural regulation in
the Department of Oruro stipulates that all imports of used clothes must be fumigated at the border
control points.  Other prefectural regulations in th e Department of Oruro also apply to the importationWT/TPR/S/57 Trade Policy Review
Page 36
of Chilean tomatoes, and require that importers of processed food verify the expiry date of their
merchandise.
(viii) Import quotas
45. Bolivia does not apply import quotas.
(ix) Import surveillance
46. Bolivia does not have any import surveillance mechanisms.
(x) Import monopolies or cartels
47. Bolivia has no import monopolies or cartels.
(xi) Countertrade
48. Neither the authorities nor the Secretariat is aware of any countertrade arrangements in
Bolivia.
(xii) Anti-dumping and countervailing measures
49. Bolivia has notified the WTO that it has not taken any anti-dumping or countervailing actions
to date.12
50. Since Bolivia's previous Trade Policy Review in 1993, no major changes have been made to
its anti-dumping legislation.  Under the new organization of the executive power, the Vice-Ministry ofIndustry and Internal Trade is in charge of the initiation and conduct of anti-dumping investigations
while the executive authority is CONAPE (Chapter II(2)(ii)).
51. The legal basis for the imposition of anti-dumping and countervailing measures is Supreme
Decree No. 23308 and its regulation, the Bi-Minis terial Decision No. 25191.  Bolivia notified this
legislation under Article 18.5 of the Agreement on Implementation of Article VI of the GATT 1994
(Anti-dumping Agreement) and Article 32.6 of the Agreement on Subsidies and Countervailing
Measures (Subsidies Agreement).  Responding to questions raised by WTO Members on itsnotifications, Bolivia indicated that its national legislation was being revised to bring it into
conformity with WTO provisions.
13
(xiii) Safeguard actions
52. Bolivia has no specific domestic regulations to implement safeguard actions;  however
provisions under the different international treaties ratified by the Congress, including the WTOAgreements, become part of national legislation.  Bolivia has never applied any safeguard measures
under GATT Article XIX.  Bolivia retained its right to use the transitional safeguard mechanism
under the provision of the WTO Agreement on Textil es and Clothing, but has not made use of this
safeguard provision.
                                                     
12 WTO documents G/ADP/N/4/Add.1/Rev.2, 22 April 1996;  G/ADP/N/9/Add.1, 19 April 1996;
G/ADP/N/14/Add.1, 5 August 1996; and G/ADP/N/16/Add.1/Rev.4, G/ADP/N/22/Add.1/Rev.2,G/ADP/N/29/Add.1/Rev.1, and G/ADP/N/35/Add.1, 20 March 1998.
13 WTO documents in the series G/ADP/W.Bolivia WT/TPR/S/57
Page 37
53. Provisions in Resolution No. 70 of LAIA's and Chapter XIX of the Cartagena Agreement
have not been invoked since the previous Trade Policy Review of Bolivia in 1993.
(xiv) Measures implemented in exporting countries
54. There are no export restraint agreements limiting exports from foreign countries to the
Bolivian market.
(xv) Balance-of-payments and other measures
55. Bolivia has no import restrictions in place to deal with balance-of-payments problems and has
never invoked GATT Article XVIII:B.
(3) MEASURES DIRECTLY AFFECTING EXPORTS
(i) Registration, documentation and origin certification
56. All exporters must be registered in the Contributor's Registry (RUC), the Commerce Registry
(RECSA) and the Exporter's Registry  (RUE).  For some food and agricultural products, exporters are
also required to be registered in the Sanitary Registry and the Sanitary and Phyto-Sanitary Census;
coffee exporters must be registered in the Coffee Exporters' Registry.
57. The National Custom Office, under the auspices of the Ministry of Finance, is responsible for
verifying the requirements and documentation related to exports.
58. Exporters are required to present a commercial invoice and an export declaration.  The
compulsory inspection requirement was eliminated and contracts with inspection companies cancelled
on 1 April 1999.  Other certificates, such as origin or sanitary certificates, might be required.
Pursuing efforts to simplify export procedures, the Bolivian authorities are considering the inclusion
of these optional procedures into the SIVEX, the single window system for handling export
documentation, introduced in 1991.  Following the suppression of export inspection, tax refund is
based on an exit certificate (for merchandise exported by road) and a customs stamp on the exportdeclaration (for merchandise exported by air), rather than on the certificate of conformity previously
issued by the inspection companies.
59. Exports of several tropical products such as Brazil nuts, cacao, coffee, and forestry products
must have a certificate of origin regardless of their destination.  Origin certificates are also required
for exports benefiting from preferential treatm ent.  Under the agreem ent between Bolivia and
MERCOSUR, a limited number of Bolivian export prod ucts benefit from temporary rules of origin
that lower, until 1 January 2002, MERCOSUR's usua l minimum local-content requirement of 60% to
50%;  for a smaller group, minimum content has been reduced to 40%, until 1 January 2000, with a
possible one-year extension.
(ii) Export prohibitions and licencing
60. The exportation of national cultural treasures, narcotics, dangerous substances, and goods and
products pertaining to national security is prohibited.
14  In addition, export prohibitions on
unprocessed forestry products are being introduced (Chapter IV(2)(e)).
                                                     
14 Article 8 of Law No. 1182 of 17 September 1990 and Article 8 of Law No. 1489 of 16 April 1993.WT/TPR/S/57 Trade Policy Review
Page 38
61. No export licences are required.  Prior authorization requirements on hydrocarbon exports
have been eliminated by the Hydrocarbons Law of 30 April 1996 and Supreme Decree No. 24399 of
31 October 1996.
(iii) Export quotas
62. Bolivia applies no MFN export quotas.  However, under preferential trade agreements,
Bolivia maintains quotas for several products:  for example, under its agreement with MERCOSUR,Bolivia can export up to 4,000 kg. of cotton shirts for men and 3,000 kg. of synthetic fibre shirts to
Argentina annually under preferential terms.  Unde r its agreement with Chile, Bolivia has obtained
preferential market access through quotas for several products, including soya oil;  cotton;  bulbs;
natural latex;  paper and cardboard boxes;  and refined sulphur.
(iv) Voluntary restrains, export charges and similar measures
63. Bolivia does not apply voluntary exports restraints, export charges, or minimum export prices.
There are no export cartels in operation.
(v) Actions by other countries affecting Bolivian exports
64. Bolivia's trading partners have not imposed anti-dumping, countervailing or safeguard duties
on Bolivian exports to date.  However, the Bolivian authorities have raised concerns about theincreasingly strict technical requirements affecting certain Bolivian exports, and have requested
consultations in the WTO with regard to EU requirements affecting Brazil nuts
(Chapter IV(2)(iii)(c)).
(vi) Duty and other tax concessions
65. In addition to free-trade zones regimes (section (vii) below), Bolivia employs two
mechanisms of export promotion based on duty and tax concessions:  a tax refund system;  and the
Temporary Import Regime for Export Promotion.
66. The tax refund system is based on Law No. 1489 of 16 April 1993, which defines the
principle of tax neutrality for export goods and services.  This law has been regulated by three
successive decrees establishing different refund mechanisms.
15  The regulatory decree in force,
Supreme Decree No. 23944, establishes tax and dut y refund through the Tax Refund Certificate
(CEDEIM), a transferable security, negotiable on the Bolivian Stock Exchange Market, which can be
used to pay any tax liability with the exception of the Profit Tax (IUE).
67. The duties and taxes returned through the CEDEIM are the indirect taxes (the VAT and the
ICE), and the import duty.  Indirect taxes paid in regard to exports are returned provided that the
relevant fiscal or commercial invoices certifying the amount of taxes paid are presented to the
authorities.
68. The automatic mechanism is applied to exports th at fall within a tariff position for which the
total value of Bolivian exports in the previous year was less than US$3 million.  For these exports, the
refund coefficient takes one of two values:
                                                     
15 Supreme Decree No. 23574, in force from April 1993 to December 1994;  Supreme Decree
No. 23899, in force from December 1994 to February 1995; and Supreme Decree No. 23944, in force sinceFebruary 1995.Bolivia WT/TPR/S/57
Page 39
- 4% of the f.o.b. export value for tariff lines for which Bolivian exports did not exceed
US$1 million;  or
- 2% of the f.o.b. export value for tariff lines for which Bolivian exports ranged from
US$1 million to US$3 million.
69. The automatic mechanism also applies to exports from individual exporters who shipped
abroad goods valued at less than US$100,000 in the previous year regardless of tariff position;  in thiscase, exporters receive 4% of the f.o.b. export value for the first US$100,000 exported in the current
year;  exports above that threshold are subject to the tariff-position restrictions described above.
70. The refund coefficients used and the tariff positions included in the automatic mechanism are
set each year by a technical commission.  Upon request, this commission may determine, within
30 days, a refund coefficient specific to the requesting exporter.
71. The determinative mechanism is applied to all other exports and involves the refund of the
estimated import duty incorporated in an exported good.
72. The second tax concession mechanism, the Temporary Import Regime for Export Promotion
(RITEX), was originally established by Supreme Decree No. 22410 of 11 January 1990, and is
currently regulated by Supreme Decree No. 24480 of 29 January 1997.  Under the RITEX, importduties as well as internal taxes are suspended for 120 days for imports of raw materials and
intermediate goods.  Imported inputs must be incorporated in a production process and re-exported
within that period, which may be extended, once, for 30 days.
73. According to the authorities, in 1997 less than 10% of total exports benefited from the
RITEX.  From 1995 to October 1998, total tax refunds through CEDEIMs amounted to
Bs 968.3 million.
(vii) Free-trade zones
74. Since its previous Trade Policy Review in 1993, no major changes have been made to
Bolivia's free-trade and industrial-zone regimes. Their regulatory framework is based on Supreme
Decree No. 21660 of 10 October 1987 and several subsequent decrees.
16  The industrial zones are
intended to encourage industrial development within  a competitive environment, while the free-trade
zones are aimed at increasing importers' competitiveness by reducing input costs.17  T o  d a t e ,
13 concessions have been issued for free-trade and industrial zones;  seven free-trade zones and two
industrial zones are currently in operation.
75. The contribution of free-trade and industrial zones to Bolivia's trade flows has been relatively
modest;  a decade after their establishment, just under one fifth of Bolivian imports and a negligible
share of its exports are linked to activities in those zones.  Moreover, their future seems unclear asthey are not covered by the preferential agreement concluded between Bolivia and MERCOSUR, and,
depending on the outcome of regional discussions, they may lose regional status within the Andean
Community.
18
                                                     
16 Supreme Decrees Nos. 22410, 11 January 1990;  22526, 13 June 1990;  23330, 24 November 1992;
23390, 25 January 1993;  and 23565, 22 July 1993.
17 GATT(1993), Chapter IV(3)(xii).
18 Although the Andean Community has taken no decision on this issue, Peru does not grant regional
treatment to Andean products exported through free-trade zones.WT/TPR/S/57 Trade Policy Review
Page 40
(viii) Export subsidies, finance, insurance and guarantees
76. Bolivia does not appear to have in place any export subsidy, finance, insurance or guarantee
mechanisms.
(ix) Export promotion and marketing assistance
77. Bolivia's institutional framework for export promotion underwent considerable modification
following the enactment in 1997 of Law No. 1788 (C hapter II(2)).  In 1998, the Promotion Center of
Bolivia (CEPROBOL), under the new Ministry of External Trade and Investment, replaced the
National Institute of Export Promotion (INPEX) and the Export Promotion Directorate (DPE),
previously in charge of export promotion.  In a ddition to export promotion, CEPROBOL is in charge
of foreign investment and tourism promotion.
78. Private sector institutions involved in export promotion include the Bolivian Institute of
External Trade (IBCE), the foundations BOLINV EST and "Bolivia is Exporting", and different
national and regional chambers of exporters.  In addition, there are specific programmes in support of
the export sector financed by international and cooperative organisms.
(x) Generalized System of Preferences
79. As described in Chapter II(3), Bolivia has signed bilateral, regional and multinational
agreements under which its exports benefit from preferential treatment.  In addition, Bolivian exports
benefit from non-reciprocal preferences offered by the Generalized System of Preferences schemes of
various trading partners.  GSP treatment is granted to Bolivian products by Australia, Bulgaria,
Canada, Czech Republic, the European Union, Hu ngary, Japan, New Zealand, Poland, Russia,
Slovak Republic, Switzerland and the United States.
80. Since 1990, under the EU GSP scheme, members of the Andean Community have benefited
from a special regime to promote the export of traditional products and thus encourage theirsubstitution for illicit drugs.  All industrial pr oducts in Chapters 25 to 97 except Chapter 93 (which
includes arms) enter the EU duty free;  several agricultural and mineral products benefit from similar
treatment.  According to the Bolivian authorities, al most all exports to the EU were granted duty-free
treatment in 1998.
81. Bolivia is also covered by the U.S. Andean Trade Preference Act (ATPA), a trade programme
designed to encourage alternatives to coca cultiv ation and production by offering Andean countries
broader access to the U.S. market.   The programme offers expanded duty-free entry into the United
States, with exceptions for sensitive products, mainly textiles and apparel.  According to the Bolivian
authorities, over three quarters of total exports to the United States were granted duty-free treatment
in 1998.
(4) M
EASURES AFFECTING PRODUCTION AND TRADE
(i) Competition policy and regulatory issues
82. Bolivia has no general competition law, but it has established a framework of competition
provisions at the sectoral level.  This framework, the Sectoral Regulation System (SIRESE) created
by Law No. 1600 of 28 October 1994, regulates, monitors and supervises the activities of enterprisesin five sectors:  telecommunications, electricity, hydrocarbons, transports, and water.  The SIRESE,
under the auspices of the Ministry of Economic Development, is composed of a general
superintendency, and five sectoral superintendencies with administrative and financial autonomy.Bolivia WT/TPR/S/57
Page 41
83. Under Article 10 of Law No. 1600, the sectoral superintendencies aim to foster competition
and efficiency in sectors under their responsibility, and investigate any monopolistic, anti-competitive
or discriminatory practices;  Articles 15 to 21 of the Law contain specific anti-monopolistic
regulations.  All enterprises in the regulated sectors are required to conduct their activities in a manner
that guarantees free competition;  they must not take part in agreements, contracts, decisions and
practices whose purpose and effect are to prevent, restrict or distort such competition.  Abusivepractices such as fixing prices, setting limits, dividing up or controlling production, markets, sources
of supply or investment are prohibited. Law N o. 1600 also prohibits mergers unless they can be
considered of public interest (for instance if they result in improved service) and do not consolidate
dominant market positions.
84. Most of the services regulated by SIRESE could be characterized as natural monopolies,
although some, like electricity production, commer cialization of hydrocarbon products, telephony
services, or air transport, may have competitive areas (Table III.3).  Competition will be gradually
extended in electricity generation, where exclusivity rights expire at the end of 1999, and in local and
long-distance telephony services, where exclusivity rights expire in 2001.
Table III.3
Public services regulated by SIRESE, 1997
Sector and No. of
enterprisesMonopolistic services Competitive services Potentially competitive services
Water (26) Drinkable water
Sewage systemsNon-drinkable water
Electricity (29) Distribution
Transmission
Isolated Integrated SystemsProductionTransmissiona
Unregulated consumersb
Hydrocarbons (503)c Pipeline transport
Network distribution of natural gasRetail servicesPipeline transporta
Telecommunications (715) Local telephony
Long distance telephonyRadio
TelevisionLocal telephony
Long distance telephony
Cellular telephony
Transport (25) Airports
RailwaysdAir TransportRailwayse
a Not exclusive concessions.
b Consumers located in zones where distributors have direct access to producers.
c Applies only to transport, distribution and commercialization enterprises;  exploration and extraction activities are not regu lated
by SIRESE.
d From Santa Cruz to Puerto Quijarro, where no land transport is available.
e Regions where land transport is available.
Source : SIRESE (1997), La Regulación Sectorial en Bolivia , La Paz.
85. In 1997, two significant anti-competitive cases were investigated by the sectoral
superintendencies concerning the cellular telephony market and domestic air transport.  In both cases
companies operating in two markets, one comp etitive, the other monopolistic, were accused of
cross-subsidizing activities to deter competitors.  The solution adopted by the Superintendency of
Telecommunication was to require the company involv ed, ENTEL, to maintain separate accountancy
systems for its activities in each market.  In the air transport case, the monopolistic position of LAB,
the former state company, was suppressed by the Bolivian Government, and Aerosur (a Bolivian
company) and American Airlines were authorized to operate international flights from Bolivia.
86. Besides its competition promotion activities, the SIRESE intervenes directly in price setting
in the service sectors where tariffs must be approved by the relevant sectoral superintendency(Chapter IV(5)).WT/TPR/S/57 Trade Policy Review
Page 42
(ii) State trading
87. The authorities have indicated that no state-trading companies operate in Bolivia;  no
notification concerning state-trading enterp rises was made under the new WTO notification
requirement.  The authorities noted that the few remaining state enterprises (including YPFB
marketing and refinery activities, the metallurgic al plant VINTO, and the military holding company
COFADENA) will be privatized in a near future.
(iii) Government procurement
88. Bolivia is not a member of the plurilateral WTO Agreement on Government Procurement.
89. Since Bolivia's Review in 1993, new legislation has been adopted.  In particular, Supreme
Resolution No. 216145 of 3 August 1995, defined the basic rules governing the System of
Administration of Goods and Services (SABS) us ed for procurement by all public entities.19  Under
the SABS, public purchases may be conducted under four different mechanisms depending on the
amount of the transactions and, in exceptional circumstances, on the nature of the good or service:
- for purchases up to Bs 20,000, agencies may directly acquire the goods or the
services from its own budget without calling for bids;
- for purchases from Bs 20,001 to 600,000, a direct invitation procedure may be used
under which an invitation is also published in newspapers to allow offers from
enterprises not invited directly;
- for purchases above Bs 600,000, a public bid must be used;  and
- exceptional contracts may be used, without a transaction value limit, for purchases of
goods and services of national interest or from non-substitutable enterprises.20
90. The procurement mechanism and awarding decisions are the responsibility of the Chief
Executive Officer (MAE) of the purchasing agency;  the qualification and evaluation procedures areconducted by a four-member commission charged with making award recommendations.  The MAE
must justify any award decision that di ffers from the commission's recommendation.
91. Bids should be published for three non-consecutive days in major local media (and
international media for international bids) at least 20 days before the bid deadline for direct
invitations;  30 days for public bids;  and 50 days for international bids and direct invitation.
92. Bid specifications, including technical and commercial requirements, as well as instructions
on how to present the bid, should be provided by the purchasing public agency.  Bid terms may vary
according to the agency issuing the tender.  The award decision relies on technical and economic
valuation.  Technical valuation considers parameters such as experience of the firm, academic and
professional record of the staff, and the suitability of firm technology;  economic valuation includesarithmetic revision, comparative analysis of unit prices, and rationality of the economic proposal.  To
promote domestic industry, domestic goods and services are given a 10% preference on their total
valuation (the sum of technical and economic valuation).
                                                     
19 Major public procurement regulations are Law No. 1178 of 20 July 1990, Supreme Decree
No. 23981 of 20 March 1995 and Supreme Resolution No. 216145 of 3 August 1995.
20 Article 92 of Supreme Resolution No. 216145.Bolivia WT/TPR/S/57
Page 43
93. Under Supreme Decree No. 216145, bids may be national or international:  only domestic
firms are allowed to participate in the former,  while foreign and domestic firms may participate in
international bids.  These are used only when requested by the financing institution or considered
necessary by the Chief Executive Officer of the purchasing agency.  Under Bolivian law, foreign
firms must have a legal representative domiciled in Bolivia or a local agent in order to conclude
contracts with the Bolivian Government.
94. In addition to these basic rules governing public purchases, specific rules apply to public
works, insurance and consulting services.21  The Bolivian authorities indicated that there are no
statistics available on government procurement, including foreign participation in public sector
purchases.
(iv) Production subsidies and tax concessions
95. The Secretariat is not aware of any production subsidies, although implicit subsidies might
result from the operation of the tax return regimes for export promotion (section (3)(vi) above).
(v) Local-content schemes
96. No programmes or measures aimed at increasing local-content requirements appear to apply
in Bolivia.
(vi) Pricing and marketing arrangements
97. The authorities indicated that there are no pricing or marketing arrangements in Bolivia.
(vii) Regional, research and development, and other assistance
98. Aside from the programmes supporting diversification away from coca production, and the
National Program for Irrigation (Chapter IV(2)(ii)), Bolivia has no specific regional assistance
programme.
99. The Technical Assistance Service (SAT) finances technical assistance for production and
commercialization. Financing is not reimbursable and should not exceed 75% of the cost of the
assistance project;  in general the amount allocated by the SAT per project does not exceed US$3,000.
In 1997, technical assistance for production was provided to 93 firms for a total value of US$473,961,
while commercial assistance was provided to 116 firms for a total amount of US$635,724.
100. Research and development activities are conducted by the Agricultural Research Center
(CIAT) (Chapter IV(2)(ii)).
(viii) Trade-related investment measures
101. The Bolivian authorities have notified to the WTO the application of trade-related
investment measures in the hydrocarbons sector.22  The notification concerns Article 24 of Law 1689
of 30 April 1996 (Hydrocarbons Law), which provides  that production required to meet domestic
natural gas consumption and to fulfil the export contracts concluded by the YPFB prior to the Law are
withheld from free marketing (Chapter IV(3)(ii)).
                                                     
21 Secretarial Resolutions 387, 388 and 389 of 26 April 1996.
22 WTO document G/TRIMS/N/1/BOL/1, 4 August 1998.WT/TPR/S/57 Trade Policy Review
Page 44
(ix) Intellectual property rights
(a) Introduction
102. Bolivia is a signatory to most international conventions on patents protection, trade marks,
copyrights and other intellectual property, and is a member of the World Intellectual Property
Organization (WIPO).23  Bolivian legislation on intellectual property rights (IPRs) includes laws,
decrees, ministerial resolutions, regulations, A ndean Community decisions and, beginning in
April 1999, the WTO Agreement on Trade-Related Aspe cts of Intellectual Property Rights (TRIPS).
103. The TRIPS Agreement was incorporated into the domestic legislation in 1995 as part of
Bolivia's ratification of the Marrakesh Agreement.  This has been followed by a number of revisions
to domestic statutes, and to the promulgation, in September 1997, of Law 1788 establishing the
National Office for Intellectual Property (SENAPI), which has responsibility for all areas of IPRs,including industrial rights, copyrights and related rights, and in coordination with the Ministry of
Agriculture, protection of new plant varieties rights.  A draft law covering all IPRs is being finalized
by the Ministry of Justice and Human Rights in coordination with the IPRs Intergovernmental
Commission.  The draft law was expected to be submitted to Congress in early 1999, and promulgated
by July 1999.
104. As part of a bilateral investment treaty with the United States, Bolivia agreed in April 1998 to
comply with its obligations under the TRIPS Agr eement within 12 months, i.e. April 1999.  Bolivia
also agreed to notify the WTO of that commitm ent.  The treaty was approved by the Bolivian
Congress in September 1998.
24
105. In 1996, Bolivia notified the Director of SENAPI as the contact point established for the
purposes of Article 69 of the TRIPS Agreement.
106. For protection of IPRs not registered in Bolivia, national treatment is granted to IPRs covered
by Andean Community rules, the Paris Convention or , with respect to copyrights, under international
agreements signed by Bolivia.  Otherwise, protection of IPRs not registered in Bolivia is subject to
reciprocal treatment.
(b) Patents and trade marks
107. Industrial property protection is based on a relatively large number of Andean Community
provisions and domestic statutes.25  Modifications to Decision 344 to adapt it to the TRIPS Agreement
are under way and new decisions regarding integrated circuits and unfair competition related to
intellectual property are under study.  The single law on IPRs being prepared in early 1999 is aimed at
                                                     
23 Bolivia has signed the Berne Convention for the Protection of Literary and Artistic Works, the Paris
Convention for the Protection of Industrial Property, the Rome Convention for the Protection of Performers,
Producers of Phonograms and Broadcasting Organizations and the Universal Copyright Convention.
24 Economist Intelligence Unit (1998).
25 Andean provisions include Decision 291 (1991) on the Common Regime for Foreign Capital on
Trademarks, Patents, Licences and Royalties, Decision 344 (1993) on the Common Regime on IndustrialProperty;  Decision 345 (1993) on the Protection of Rights for Plant Varieties;  Decision 366 (1994) modifyingDecision 345;  Decision 391 (1996) on the Common Regime on Access to Genetic Resources;  and Decisions
423 (1997) and 448 (1998) modifying Decision 391.  Relevant Bolivian legislation includes the Law on
Industrial Privileges (1916) as amended;  Supreme Decree 4320 (1956) on Rights for Trademark and IndustrialPatent Concession and Publication as amended;  Supreme Decree 20793 (1985) on International PatentClassification;  Supreme Decree 24581 (1997) creating the Interinstitutional Committee for the Protection andDefence of Intellectual Property;  and Supreme Decree 25159 (1998) regulating SENAPI.Bolivia WT/TPR/S/57
Page 45
consolidating existing regulations and thus enhancing transparency and providing greater protection to
rights holders.
Patents
108. Patent protection is granted to new industrial  products or processes, new applications of
known methods for obtaining industrial products or improvements on known devices or processes.
Patent applications must be filed with SENAPI, and are granted for 20 years from the filing date.Andean Community Decision 344 extended prot ection to all areas of technology, including
biotechnology and nuclear and fissionable materials.
109. Not patentable are species and breeds of animals and procedures for obtaining them;  the
human body and its genetic identity;  and pharmaceutical products on the World Health
Organization's list of essential  pharmaceutical products.  However, Supreme Decree 9673, providespatent protection for pharmaceutical production processes.  No patent has been granted since 1993
under Decision 344 as the requirement of novelty has not been met.  It appears that Bolivia grants no
transitional (pipeline) protection for pharmaceuticals.
110. Protection for new plant varieties is granted, through a sui generis  system under Andean
Decision 345, to members of the Andean Community .  The regime is the responsibility of the
Ministry of Agriculture through the National Seed s Programme in coordination with SENAPI.  The
authorities indicated that Bolivia was to become member of the International Union for the Protection
of New Varieties of Plants (UPOV).
Trade marks
111. Trade mark protection is granted for names, titles, labels, emblems, seals, mottos and prints;
containers and other packings that may designate origin;  as well as service marks, collective marks
and certification marks.  Applications must be filed with SENAPI.  The duration of a trade markregistration is ten years, renewable indefinitely for similar periods.  Use is not a prerequisite to
registration, but registration may be revoked if the mark has not been used for three consecutive years.
Unregistered marks are not protected.  The following are not registerable: terms in general use,
immoral or offensive expressions, marks used by the State, usual shape or colour of a product, name
of a protected plant variety or a word derived from that name.
112. Opposition to trade mark registration can be made by any person within a period of
30 working days from the date of publication of the application for registration.  Under Andean
Decision 344, if similar marks identifying the same goods or services are owned by different
individuals in different countries, they may only market the products covered by the trade marks in
their country of origin unless they have a registered agreement with the local owner.
Licensing
113. There are no restrictions on the licensing of intellectual property nor on royalty rates, but
under Andean Decision 291 registry is mandatory for the payment of royalties.  Andean Decision 344
requires registration of licensing agreements for patents and trade marks.  Licensing of technology or
engineering services, which must also be registered, involves an evaluation of the net contribution ofimported technology.  Registration is with the SENAPI.
114. For patents, the licensee is required to exploi t the invention, within two years following the
grant of the licence;  if the licensee fails to justify the inaction, the licence is revoked.  Owners of
trade marks or service marks registered and in force may assign their use, or transfer them by writtenWT/TPR/S/57 Trade Policy Review
Page 46
agreement.  SENAPI may not register licensing ag reements for working patents and trade marks that
do not conform to Andean Decision 291.
115. Compulsory licensing is legislated under Andean Decisions 291 and 344 but the authorities
indicated that there have been no cases of compulsory licensing in Bolivia.  Compulsory licences may
be awarded when patents are not worked for three years from the date of granting or four years from
the date of filing, whichever is longer, unless the patent holder justifies the non-use of the patent.  Acompulsory licence may be granted if the patentee suspends the use of the invention for more than one
year.
(c) Copyrights and related rights
116. Copyright law extends protection to literary, artistic and scientific works and related rights.
Copyright protection of computer software extends to source code, object code, screen display,structure sequence and organization.  Bolivian copyright law protects the moral rights of authors,
including the right of attribution, the right to oppose modification or distortion, and the right to
maintain anonymity.  Copyright protection generally extends to the author's life plus fifty years.  The
authorities noted that registration is voluntary, and is intended to provide enhanced legal protection
for right holders.
26  Applications for registration are made with SENAPI.
117. In April 1997, Bolivia issued Supreme Decree No. 24582 to regulate the protection of
software, and adopted penal code amendments to make copyrights infringement a criminal offence.
(d) Other IPRs
118. Protection of designs and models that are distinctive with respect to the goods they identify is
granted through Andean Decision 344 and the Paris Convention.  Utility model protection may not be
granted to procedures and materials excluded from patent protection.  Industrial designs relating to
clothing are not registerable.  Sculptures, works of  architecture, painting, engraving or stamping, or
any other subject-matter of purely aesthetic character are not considered as utility models.  Utility
models registration is valid for ten years and may be renewed.  Industrial designs are registered for an
eight-year period.  Applications for registration are filed with SENAPI.
119. Layout-designs of integrated circuits were not protected before Bolivia's implementation of
the TRIPS Agreement.  An Andean decision, relative to this subject, was expected to be finalized byend 1999.  The subject is covered also by the draft law on intellectual property.
120. Protection for geographical indication is granted through the Paris Convention and Andean
Decision 344.  Protection of "Singani" (a traditional Bolivian beverage) is provided by Law 1334 of
4 May 1992 and Supreme Decree 21984 of 13 May 1988.  Additional protection of geographical
indications is planned in the new law on intellectual property.
                                                     
26 Copyrights and related rights are protected through Law 1302 (1991) on the Cinema, Law 1322
(1992) on Copyrights, Law 1632 (1995) on Telecommunications, Secretarial Resolution 042/96 on theOrganization of the National Direction of Copyrights, the Penal Code on Copyrights Violation and Law 1768
(1997) modifying it;  Supreme Decree 23493 (1993) regulating Law 1302;  Supreme Decree 23907 (1994) on
Law 1322;  Supreme Decree 24132 (1995) regulating Law 1632;  Supreme Decree 24581 (1997) creating theInterinstitutional Committee of Protection and Defense of Intellectual Property;  Supreme Decree 24582 (1997)regulating software;  Supreme Decree 25159 (1998) regulating SENAPI;  and Andean Decision 351 (1993) on aCommon Regime for Copyrights and Related Rights.Bolivia WT/TPR/S/57
Page 47
121. Andean Decision 344 grants express protection to trade secrets, and prohibits employees and
managers from revealing trade secrets to third parties.  No formalities are required for the protection
of trade secrets.
(e) Enforcement
122. Under Supreme Decree 25159, SENAPI has respon sibility for overseeing the enforcement of
domestic and international obligations on IPRs, as well as receiving and resolving disputes, andimposing penalties.  The authorities expect SENAPI's responsibilities concerning IPRs infractions to
be further defined in the new law on intellectual property.
123. The Andean Court of Justice is also involved in  the protection of IPRs in Bolivia.  The Court's
decisions are directly enforceable in Bolivia and its jurisprudence has produced precedents in the area
of intellectual property, for example opening the possibility, in the case of pharmaceuticals, for
domestic legislation to impose additional requirements to those provided in Andean decisions.
124. All foreign IPR holders receive equal treatment in dispute cases.  Disputes concerning IPRs
registered in Bolivia are dealt with through the normal court system.  Cases of rights not registered in
Bolivia must be first submitted to SENAPI, before going through the court system.  The copyright
legislation establishes administrative procedures for conciliation and arbitration to solve civil disputesin that area.  According to the authorities, the aver age time to complete a civil or penal process is four
years, with mechanisms available to shorten this period.  About 2,000 trade marks cases have been
filed since 1993.
125. The authorities indicated that there are no regulations to allow holders of IPRs to prevent
non-authorized imports, but that modifications to Decision 344 may institute such measures.  They
also noted that no specific border measures are in place to prevent the violation of intellectual
property rights. However, the new intellectual property law would include these measures, as might anew customs law (section II(1)).  Copyright protection, especially of computer software, appears to be
particularly weak.