RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/ALB/25
26 August 1998
(98-3311)
Working Party on the
Accession of AlbaniaOriginal:  English
ACCESSION OF ALBANIA
Communication from Albania
The Ministry of Economic Cooperation and Trade of the Republic of Albania has submitted the
following information concerning the economy and the foreign trade regime.
_______________
Table of Contents
Page
I. MACROECONOMIC SUMMARY OF  THE SITUATIO N IN 1997................................. 1
A. T HE REAL SECTOR ..................................................................................................................1
B. S HORT -TERM ECONOMIC RECOVERY PROGRAM ....................................................................1
C. M EDIUM -TERM ECONOMIC PROGRAM ....................................................................................1
II. SELECTED STATIS TICAL DA TA ....................................................................................... 2
A. G ROSS DOMESTIC PRODUCT , TOTAL AND BY PRINCIPAL ECONOMIC SECTORS ....................2
B. C ONSUMER PRICE INDEX AND ANNUAL INFLATION RATES ...................................................2
C. E MPLOYMENT BY SECTORS ....................................................................................................3
D. B ALANCE OF PAYMENTS AND NATIONAL BUDGET STATISTICS .............................................3
E. V ALUE OF EXPORTS AND IMPORTS , BY REGIONS ...................................................................4
F. V ALUE OF EXPORTS AND IMPORTS , BY COMMODITY .............................................................4
G. P RODUCTION OF SELECTED AGRICULTURAL AND FOOD PRODUCTS ......................................5
III. REVIEW OF THE LIST OF PR OHIBITED TRADABLE  PRODUCTS ......................... 6
A. P ROHIBITED IMPORTABLE PRODUCTS .....................................................................................6
1. Previous List................................................................................................................ ..........6
2. Update to previous list...................................................................................................... ....6
B. P ROHIBITED EXPORTABLE PRODUCTS .....................................................................................7
1. Previous list ................................................................................................................ ...........7
2. Update to previous list...................................................................................................... ....8
IV. REVIEW THE LIST OF GOODS OR SERVICES SUBJECT TO PRICE
CONTROLS....................................................................................................................... ......... 8
A. E LECTRICITY ...........................................................................................................................8
B. W ATER ............................................................................................................................... .....9
C. T RANSPORT .............................................................................................................................9
1. Railroad transportation. ..................................................................................................... .9
2. Bus transportation. .......................................................................................................... .....9
3. Other modes of tr ansportation. ...........................................................................................9
D. P HARMACEUTICALS ................................................................................................................9
V. STATUS OF PRIVATIZATION ........................................................................................... 10
A. P RIVATIZATION IN THE AGRICULTURAL AND AGRIBUSINESS SECTOR ..................................10
B. P RIVATIZATION IN THE STRATEGIC SECTOR ..........................................................................11
1. Telecommunications Sector ...............................................................................................12
2. Oil and Ga s Sectors.......................................................................................................... ...12WT/ACC/ALB/25
Page ii
3. Electrical En ergy Sector..................................................................................................... 12
4. Mining Sector ................................................................................................................ ......13
5. Transportation Sector ........................................................................................................ 13
6. Water Utility Sector......................................................................................................... ...14
7. Privatization in th e banking sector ...................................................................................14
8. Other Economic Sectors.....................................................................................................14
C. P RIVATIZATION IN THE NON -STRATEGIC SECTOR .................................................................14
VI. REVIEW OF  ALBANIA'S CONFORMITY WITH THE SPS AND TBT
AGREEM ENTS ..................................................................................................................... .. 16
A. S UMMARY OF  COMPLIANCE WITH THE SPS AND TBT A GREEMENTS ..................................16
B. R EVIEW OF LEGISLATIVE AREA FOR CONFORMITY ...............................................................16
C. R ELEVANT LAWS ADOPTED DURING THE LAST YEARS ..........................................................17
D. A N ADDITIONAL LIST OF LEGISLATION AND SUBLEGAL ACTS DRAFTED FOR THE LAW ON
FOOD ............................................................................................................................... ......17
E. T HE ALBANIAN FOOD CODEX ...............................................................................................17
F. U PDATE ON TBT COMPLIANCE .............................................................................................18
VII. COMPLIANCE WI TH TRIPS .............................................................................................. 18
A. P ROPOSED AMENDMENTS TO THE LAW ON INDUSTRIAL PROPERTY ....................................18
B. C OMPLIANCE WITH THE TRIP S AGREEMENT ........................................................................19
VIII. NOTE ON PREVIOUS QUESTI ONS AND UPDATE IN FORMATION ....................... 37
A. N OTE ON GOVERNMENT PROCUREMENT ...............................................................................37
B. D ISCRIMINATORY EXCISE TAX ..............................................................................................38
C. U PDATE ON CONFORMITY WITH TRIM S...............................................................................38
D. N OTE ON ANTI -DUMPING .......................................................................................................38
E. N OTE ON SAFEGUARDS .........................................................................................................38
F. N OTE ON COUNTERVAILING DUTIES .....................................................................................39
_______________WT/ACC/ALB/25
Page 1
I. MACROECONOMIC SUMMARY OF THE SITUATION IN 1997
A. THE REAL SECTOR
During 1997, the Albanian economy suffered a substantial reduction in output.  The
macroeconomic statistics clearly demonstrate (section II, part A) that the interruption of economic
activity was particularly severe across all sectors: industry (-16 per cent), agriculture (-11 per cent),construction (-17 per cent), transportation (-18 per cent), and services (-26 per cent).  As a result of
the reduction in production and damages sustained during the civil unrest in 1997, two problems in
particular have oriented governmental action during 1998.  First, the government has focused its
support on the most affected sectors.  The damage has been assessed and foreign financing has been a
principal source of covering such costs.  Second, governmental action is required to correct the
structural problems which still exist in various sectors of the economy.  Before the start of 1998, the
government had a stated objective to increase GDP by 10 per cent.
B. S
HORT -TERM ECONOMIC RECOVERY PROGRAM
In the short term, the government has the stated objectives of fostering the economic recovery
and maintaining economic stability.  The economic recovery program involves adopting concrete
measures to lower the evasion of taxes and customs duties through the improvement of technical and
organizational work.  In addition, considerable effort is being focused on the allocation of budgetexpenditures to help those sectors disproportionately affected in 1997.  Rather than reduce budget
expenditures to maintain fiscal discipline (especially given the economic slump from 1997) the
government is wanting to find ways to improve the efficiency of public administration, to increase the
State support of adversely affected segments of society (e.g., the unemployed, the homeless, etc.), and
to increase the amount of public investment in the economy.  These measures are expected to supportthe objective of economic recovery and maintaining economic stability.
C. M
EDIUM -TERM ECONOMIC PROGRAM
In the medium term (i.e., 1999-2000) the government is targeting an annual growth of
7-8 per cent per year on average and to reduce inflation to 5 per cent from the 33 per cent experienced
in 1997.  The government also intends to guarantee a level of reserves commensurate with almost fourmonths of imports.  In 1997 the budget deficit as a percent of GDP was 40 percent.  The target for the
deficit by the year 2001 is 3 per cent of GNP.  Other structural reforms such as a liberal investment
regime, privatization of large-scale enterprises and the creation of a functional market for agricultural
lands should support the achievement of these medium-term goals.
A more detailed report summarizing economic policies is attached (see WT/ACC/ALB/24).
Title of supplementary material: "Economic Policies and Development Tendencies of Albania in the
Short and Medium Terms", Department of Macr oeconomy, Ministry of Economic Cooperation and
Trade, 1998, 60 pages in total.  Note: This report is not provided electronically.WT/ACC/ALB/25
Page 2
II. SELECTED STATISTICAL DATA
A. GROSS DOMESTIC PRODUCT , TOTAL AND BY PRINCIPAL ECONOMIC SECTORS
1990 1991 1992 1993 1994 1995 1996 1997
Million dollars, constant prices of 1990
GDP 1,681 303 150 120 140 163 186 103
Industry 625 97 25 16 18 19 19 13
A g r i c u l t u r e 7 6 2 916791 5 8
Construction 111 20 11 11 15 17 18 11
Transportation 55 10 4 4 5 6 7 3
Services 214 47 27 23 28 32 35 18
Dollars of 1990
GDP/capita 510 93 46 38 44 50 48 31
Million dollars, current
GDP 1,681 410 676 1,228 1,947 2,476 2,689 2,264
Industry 625 132 114 170 244 290 336 281
Agriculture 676 174 337 671 1,064 1,352 1,419 1,267
Construction 111 27 52 111 187 255 307 255
Transportation 55 13 20 38 66 87 88 62
Services 241 64 124 238 386 492 538 399
Current dollars
GDP/capita 510 128 212 388 608 762 819 686
Sources: Original data sources from DEDAC, Unit of Macroeconomy; also from the Statistical Institute of
Albania, Albania in Figures , INSTAT, 1997.
B. CONSUMER PRICE INDEX AND ANNUAL INFLATION RATES
1991 1992 1993 1994 1995 1996 1997 1998a
Consumer Price Index, Total and by Sectorb
Total 04.1 236.6 30.9 5.8 6.0 17.4 42.1 6.2
Food, beverage, and
tobacco11.1 56.4 27.0 7.3 6.4 20.0 5.8 5.6
Clothing and footwear 15.1 69.8 11.8 4.9 8.7 5.6 1.8 5.4
Utilities 15.1 74.7 16.3 22.1 3.1 1.4 9.1 3.4
Household goods and
maintenance17.4 88.6 0.6 -1.3 0.6 5.3 6.6 0.9
Medical care 0.0 83.3 20.6 8.2 4.4 9.5 9.0 6.3
Transportation  and
communication2.9 25.1 41.1 44.7 5.3 3.7 3.6 7.6
Recreation, education
and culture02.9 56.3 54.6 -2.1 3.8 7.0 7.2 2.3
Personal care and effects 94.9 47.3 19.1 7.5 5.9 6.0 8.4 3.7
Inflation Rate, average annual change in the CPI
Annual rate 35.5 226 85 2.5 7.8 2.7 3.2 1.3
a First half of 1998.
b Consumer price index, annual growth in percentage terms, based on December       1993 = 100.
Sources: Statistical Institute of Albania, Albania in Figures , INSTAT, 1997; Bank of Albania.WT/ACC/ALB/25
Page 3
C. EMPLOYMENT BY SECTORS
1991 1992 1993 1994 1995 1996 1997
Employment, total in public and private sector (1000)
Total employment n/a n/a n/a 1,162 1,138 1,116 1,107
Agriculture and fishing n/a n/a n/a 780 778 785 771
Mining n/a n/a n/a 20 21 18 16
Processing n/a n/a n/a 81 65 57 98
Electricity n/a n/a n/a 9 9 10 14
Construction n/a n/a n/a 18 21 22 15
Trade n/a n/a n/a 32 51 58 47
Hotels and restaurants n/a n/a n/a 10 11 20 10
Transportation and 
communicationn/a n/a n/a 8 30 27 27
Education n/a n/a n/a 55 53 46 49
Health n/a n/a n/a 32 26 23 28
Other sectors n/a n/a n/a 96 73 51 75
Note:  n/a is not available.
Source: Statistical Institute of Albania, Albania in Figures , INSTAT, 1997; Bank of Albania.
D. BALANCE OF PAYMENTS AND NATIONAL BUDGET STATISTICS
1992 1993 1994 1995 1996 1997 1998a
Balance of Payments, million dollars
Current account -50.8 14.7 -42.7 -14.6 -107.1 -271.2 -46.0
Trade balance -470.5 -489.9 -459.7 -475.0 -687.3 -534.9 -137.6
Services balance -68.9 -84.5 -88.4 -59.3 -59.8 -50.8 -20.5
Foreign Exchange, million dollarsb
Foreign exchange -24.9 -114.9 -54.8 -30.6 -39.5 -28.3 -6.6
National Budget, million dollars
Revenues 177.4 327.9 494.5 586.3 506.3 405.0 225.1
Budget deficit -114.9 -113.8 -206.0 -336.6 -366.4 -676.0 -100.8
Deficit as  per cent GDP 15.8 13.7 7.7 8.6 12.3 40.4 -3.4
a  Balance of payments and foreign exchange are from the first quarter; national budget data are from the first
half of 1998.
b  Total change in reserve assets.
Source: Balance of Payments: Quarterly Statistical Bulletin , December 1997, Bank of Albania; Albania in
Figures , INSTAT, 1997 using data from the Ministry of Finance.WT/ACC/ALB/25
Page 4
E. VALUE OF EXPORTS AND IMPORTS , BY REGIONS
1991 1992 1993 1994 1995 1996 1997 1998a
Exports by region, million dollars
Total Exports 91.4 72.9 122.4 137.3 201.9 207.1 140.1 39.9
Europeb57.1 32.9 90.5 101.8 158.9 200.1 138.9 n/a
EU-15 36.0 29.0 88.2 101.7 157.1 178.1 122.5 n/a
Imports by region, million dollars
Total Imports 220.8 392.2 581.8 577.9 653.2 923.2 632.6 182.7
Europeb135.1 146.9 486.0 10.0 554.8 87.3 26.7 n/a
EU-15 97.7 108.3 431.8 436.6 480.8 711.8 527.3 n/a
a  Includes first quarter only.
b  Includes member countries of the EU-15 .
n/a:  not available.Source: Ministry of Trade and Tourism, Statistical Division, Statistical Data for 1997 ; Institute of Statistics
(INSTAT); Albania in Figures , INSTAT, 1997; and Directorate of Customs.
F. VALUE OF EXPORTS AND IMPORTS , BY COMMODITY
1994 1995 1996 1997 1998a
Exports by category, million dollars
Total Exports 137.3 201.9 07.2 40.1 39.9
Food, beverages, tobacco 5.7 27.0 35.1 8.0 3.4
Minerals, fuels, energy 12.2 30.4 20.1 8.1 4.1
Chemicals, plastics, etc 1.2 2.4 3.2 1.4 0.6
Leather and products 1.8 4.8 8.2 7.7 1.7
Textiles and footwear 37.2 77.7 01.8 0.0 24.6
Construction materials and metals 6.9 24.5 22.9 4.2 2.0
Wood and paper products 2.5 14.3 8.4 9.1 1.2
Machinery, equipment, spare parts - 3.2 3.3 7.4 1.2
Other products 2.3 17.5 3.8 4.2 1.9
Imports by category, million dollars
Total Imports (including aid) 577.9 650.9 923.3 632.6 178.6
Food, beverages, tobacco n/a 195.6 319.5 174.2 47.9
Minerals, fuels, energy n/a 67.5 49.2 50.4 14.5
Chemicals, plastics, etc n/a 54.5 65.5 56.4 22.8
Leather and products na/ 7.5 19.4 14.3 3.7
Textiles and footwear n/a 98.0 141.0 100.4 30.8
Construction materials and metals n/a 47.6 45.0 41.1 17.9
Wood and paper products n/a 11.2 20.8 18.9 7.6
Machinery, equipment, spare parts n/a 145.7 148.6 101.1 26.6
Other products n/a 23.1 109.3 75.8 6.9
n/a :  not available
a Includes first quarter only
Sources: Ministry of Trade and Tourism, Statistical Division, Statistical Data for 1997 ; Institute of Statistics
(INSTAT);  Albania in Figures , INSTAT, 1997; Directorate of Customs.WT/ACC/ALB/25
Page 5
G. PRODUCTION OF SELECTED AGRICULTURAL AND FOOD PRODUCTS
1994 1995 1996 1997
Production of selected agricultural and food products, metric tons
Meat n/a 1,453 2,236 n/a
Jams, compote, marmalade, jellies n/a 228 394 n/a
Edible oils n/a 6,944 3,899 n/a
Industrial greases n/a 11 555 n/a
Soap, detergents, cleaning soap n/a 3,042 1,637 n/a
Processed liquid milk n/a n/a 1,669 n/a
Butter n/a 274 147 n/a
Cheese n/a 6,067 3,652 n/a
Curd n/a 1,048 264 n/a
Yoghurt n/a 5,122 3,481 n/a
Chocolate and sugar confectionery n/a n/a 1,747 n/a
Refined sugar beet n/a 1,023 9 n/a
Fresh pastry goods and cakes n/a n/a 723 n/a
Prepared/preserved pastry goods n/a 6 352 n/a
Spaghetti and pasta production n/a 4,200 1,515 n/a
Selected Products, 1000 tons
Wheat flour and bran n/a 144 889 n/a
Fresh bread n/a 172 147 n/a
Beverages, hl
Spirits and other distilled alcoholic n/a 32,181 5,733 n/a
Ethyl alcohol n/a 2,948 242 n/a
Sparkling wines n/a 16,922 1,508 n/a
Beer n/a 108,507 8,828 n/a
Mineral and carbonated waters n/a 12,743 3,910 n/a
Other non-alcoholic beverages n/a 104,009 22,525 n/a
Tobacco products
Cigars, cigarettes, etc. n/a 685 4,830 n/a
Other tobacco products n/a 1,723 41,407 n/a
n/a: not available.
Source: Ministry of Trade and Tourism, Statistical Division, Statistical Data for 1997 ; Institute of Statistics
(INSTAT); Albania in Figures , INSTAT, 1997.WT/ACC/ALB/25
Page 6
III. REVIEW OF THE LIST OF PROHIBITED TRADABLE PRODUCTS
A. PROHIBITED IMPORTABLE PRODUCTS
1. Previous List
The previous list of items that was submitted is still valid.
Items that are prohibited from import include: m ilitary toxic materials, and toxic materials
which are out of date; other dangerous waste materials; infected herbs and herb products; seeds and
seedlings which can be used to produce narcotics; infected animals (fishes) and related products;
infected liquid, gas or solid materials; food commodities which are infected or out of date; narcotic
drugs or raw materials used for the production of narcotic drugs, as well as other psychotropic
materials; and materials, such as emblems, maps or writings, that pose a threat to national or social
security.  Items that are subject to licence or special authorization include: all kinds of fire arms;
radioactive materials and strong poisons; explosives, charges and bullets; pesticides; medicines; andseeds and seedlings for agricultural use.
2. Update to previous list
An update of the list of prohibited importable products with greater detail is provided.
Dangerous waste materials which are prohibited into Albania are defined as follows: clinical
waste from medical service in hospitals and in other health centers or clinics; waste from theproduction and preparation of pharmaceutical products; expired pharmaceutical products;
pharmaceutical waste from drugs and medications; waste from the production, formulation and usage
of biocides and other phytopharmaceutical materials; waste from the production, formulation and
usage of chemicals for the storage of wood; wa ste from the production, formulation and usage of
organic solvents; waste from heat-treatment or te mpering operations containing cyanogen; waste from
mineral lubricating oils which are not suitable for certain original usage; waste from the mixture of oil
emulations with water and hydro carbonates with water; waste of matters and articles contaminated
with polyclorinated biphenyl (PCB), with polyclor inated terfenile (PCT), or with polyclorinated
(PBB); waste of tar remaining from the processing, distilling and treatment with pyrolize; waste from
the production, formulation and usage of inks, pigments in paints for white-washing and varnishes;waste from the production, formulation and usage of resins, latexes, plastificators, glues and mastics;
waste of chemical products remaining from research activities and during the implementation of
unidentified and new activities whose effects are not yet known to human health, plants and animals,
and the environment; waste of an explosive nature which are not subject to other legislation; waste
from the production, formulation and usage of photogra phic chemicals and processed materials; waste
remaining from the surface treatment of metals and plastic materials; waste from extermination
operations of industrial wastes.
Waste is defined as that material which contains the following: carboniles of metals; beryl
and beryl components; components of sixvalent chromium; components of copper; components of
zinc; arsenic and arsenic components; selen and selen components; cadmium and cadmium
components; antimony and components of antimony; tellurium and tellurium components; mercury
and mercury components; lead and lead component s; inorganic components of fluor, except calcium
fluor; inorganic cyanides; acid solutions or solid acids; basic solutions and solid basics; asbestos in
powder or fibers; organic components of phosphorous; organic cyanides; phenol and phrenic
components including chlorophenol; ether; organic solvents halogenated; organic solvents except
halogenated solvents;  any derivatives of polychlored dybenzo-phuran; an derivatives of polychlored
dybenzo-p-dyocsin; organic components, halogfat ed and others, except the materials mentioned
previously; the residuals remaining from burning urban waste; used tires (except retreaded tires, thoseWT/ACC/ALB/25
Page 7
imported by subjects having a license to deal with retreading of tires, and those tires which are
mounted to imported vehicles).
Those products which are prohibited to import and used in the health sector in Albania
include the list of narcotic and psychotrope substances which is included in Law Number 7975, dated
26 July 1995 "On Narcotic Drugs and Psychotrope Substances" drafted in accordance with theConventions of 1961 and 1971 and the Adjournments of 1993.  The updating of the list is based on
the updating of this list by international organizations.  There are no other prohibited substances
(narcotic or psychotropic).
The classification of narcotic drugs and psychotropic substances include the following. From
List IV of the Convention of 1961 the following items are included: Acetyl - Alfa - metilfentanil;
Acetorfine; Alfa-metyfentanil; Alfa-metiltiofe ntanyl; Beta-hydroksifentanil; Beta-hydroksi –
3 metiyfentanyl; Dezomorphyne; Etorphyne; Heroin; Cannabis, cannabis raisin, extracts and tincturesof cannabis; Cetobemidon; 3 - metylfentanyl; 3 - metiytiofentanyl; MPPP; Pre - fluorfentanyl;
PEPAP; Tiophentanyl.  From Li st I of the Convention of 1971 the following items are included:
Brolamphetamyn; DET; DMA; DMHP; DMT; DOET; Eticiklidyn; Catinon; (+) - Lizergid; MDMA;
Mescaline; 4- metyl - amynorex; MMDA; N- etyl-tenamphetamine; Parheksyl; PMA; Psylocyn,
Psylotsyn; Psylocybyn; Roliciklidyn;  STP, DOM; Tenamfetamyn; Tenocyclidyn;Tetrahydrocanabinol; TMA.
For chemical substances and products deemed having military application, there is an
additional list of prohibited products which may require authorization for importation.  There is no
specific law on the application of the Convention on the Ban on Chemical Weapons and the
Government of Albania has not yet determined a way to treat harmful chemical substances (i.e.,chemical weapons).  In accordance with the legislation of neighbouring countries and international
conventions, trade in those materials and chemical components specified under List Numbers 2 and 3
of the annex of the above mentioned convention can only with be conducted with the approval of the
Ministry of Defense.  The Ministry of Defense allows the licensed trade of the following materials:
munitions such as bullets of different calibers, missiles, grenades, mines, fireworks of 180 mm, etc.;and military explosives and powder such as TNT, egzogyn, dynamite, ammonite, different powders,
etc.
B. P
ROHIBITED EXPORTABLE PRODUCTS
1. Previous list
The previous list of items that was submitted is still valid.
Export prohibitions include: firewood, unpro cessed wood; sawed wood and beams; waste and
scrap precious metals; waste and scrap iron, steel, copper, nickel, lead, zinc, tin, and copper; wasteand scrap aluminum (except for waste aluminum packaging, such as aluminum cans for soft drinks
which had been imported); and ingots.  There are no commodities which are subject to an export
license.
Firewood (44.01 - 44.01.22) is defined as being in the form of chunks, cudgels, branches or
twigs or other similar forms; chips of wood and sa w-powder, being agglomerated or not in the form of
chumps, bricks or other similar forms.  Unpr ocessed wood (44.03.01 - 44.03.99) is defined as stripped
or not, either rounded or not (except the elemen ts of wood details).  Sawed wood and beams (44.07.10
- 44.07.99) is defined as bars or sheets, planed and polished, spiked together with joints thicker than
6mm (except the planed or polished beams, and joined pieces which are allowed to be exported).
Other items include: waste and scraps of precious metals (71.12); scraps of iron and steel (72.04)except the scraps of stainless steel and waste of iron remaining from the buckets of furnaces; copper
and copper articles (74.01 - 74.19) except copper rust, electrolytic copper and small copper handicraftWT/ACC/ALB/25
Page 8
products which are not produced from copper molds; waste and scraps of nickel (75.03); waste and
scraps of aluminum (76.02) except imported alumi num packaging; waste and scraps of tin (78.02);
waste and scraps of zinc (79.02); waste and scraps of lead (80.02).
2. Update to previous list
An update of the list of prohibited exportable products with greater detail is provided.
New items added to the list include hides of cattle (41.01) defined as fresh, dried, limed,
salted, stretched or otherwise treated but not tanned or pergaminated, prepared, and cleaned (these are
for hides of cattle other than those of horses); raw skins of sheep and lambs (41.02) defined as fresh or
salted, dried or limed, pointed or otherwise treated, but not tanned or prepared (including skins with
wool, stretched or unstretched); other hides and skins (41.03) defined as fresh or salted, dried, limed
in salted water or otherwise treated, but not tanned and pergaminated or processed further (including
wool or hair and stretched or unstretched).
IV. REVIEW THE LIST OF GOODS OR SERVICES SUBJECT TO PRICE CONTROLS
A. ELECTRICITY
Electrical power is a  product whose price is controlled; rates are set according to different
categories is as follows:
Category Rate
1.  Residential households 4.0 leke + VAT
2.  Main sectors of the economy
For some specific sectors
- Bakery
- Sidurgy, geology, copper, water supply stations, water 
reservoirs, railway stations, production of flour
- Oil, metallurgy, ferochromium, mining of chromium and 
coal, fertilizer production, production of sodium and 
PVC, cement production and the state facilities2.4 leke
1.2 leke
2.4 leke
3.0 leke
3.   Other producer entities
Supply from the TL net (35 and 110 kw)
Supply from the TM net (6.10 and 20 kw)
- Measuring in the sub-station
- Measuring in the primary of the transformer
- Measuring in the secondary of the transformer
Supply for the TU net4.1 leke
5.3 leke
5.4 leke
5.6 leke
6.3 leke
4.   Services sector providers
During the period of April to October
Supply from the TL net (35 and 110 kw) 0.0 leke
Supply from the TM net (6.10 and 20 kw)- Measuring in the sub-station
- Measuring in the primary of the transformer
- Measuring in the secondary of the transformer5.1 leke
5.3 leke
5.5 leke
Supply for the TU net 6.3 lekeWT/ACC/ALB/25
Page 9
Category Rate
During the period of November to March
Supply from the TL net (35 and 110 kw)
Supply from the TM net (6.10 and 20 kw)
- Measuring in the sub-station
- Measuring in the primary of the transformer- Measuring in the secondary of the transformer
Supply for the TU. net0.0 leke
7.4 leke
7.7 leke8.1 leke
10.1 leke
5.   Wholesale rate for State institutions 3.0 leke
B. WATER
The tariffs on drinkable water are applied by the water supply stations according to different
types of users of water.  The rates are set according to the following scheme:
Type of Household, Enterprise or Institute Rate
Residential households with a water meter 15 leke/m3
Residential households without a water meter in the
building60 leke/month per person;
not to exceed 300 leke per family
Medical institutions 15 leke/m3
Educational institutions 30 leke/m3
Bread producing enterprises 45 leke/m3
Private companies 60 leke/m3
Water supplied by public fountains 80 leke/month per family
State institutions 52 leke/m3
In cases where the verification of water consumption is above the normal use according to the
categories of consumers, the additional consumption is charged at a rate of 60 leke/m3.
C. TRANSPORT
Public transportation rates are set for the following modes of internal transport:
1. Railroad transportation.
Passenger rates are set by the government.  Rail cargo rates are liberalized.
2. Bus transportation.
For urban and inter-urban passengers rates are set by the government. For urban public
transport (lines up to 9 km) of passengers and baggage are set at: 15 leke per passenger for a one-way
ticket; 330 leke for a monthly ticket for citizens; 180 leke for a monthly ticket for pupils and students.
3. Other modes of transportation.
All other modes of transportation have liberalized rates.  Taxi rates are completely liberalized;
there is no legislation on internal air transportation and none exists in practice.
D. PHARMACEUTICALS
For a selected group of medicines, prices are liberalized; however, the government provides a
consumption subsidy set according to a reference price.  The reference price for a drug is setaccording to the following scheme: domestic producers are permitted a 17 per cent margin above their
costs of production; wholesalers are permitted a 12 per cent margin and the retailing pharmacy a
27 per cent margin.  For an imported drug, the reference price is set according to the following
scheme: the import price, a wholesale margin of 17 per cent and the retailing margin of 27 per cent.WT/ACC/ALB/25
Page 10
The sum of the production costs (import price) and the various margins is equal to the reference price.
It is upon the reference price that the subsidy is based.  Direct payments are made to the retailing
establishment.  The category of drugs which are subjected to the reference price is listed as follows:
acidum ascorbicum; acidum valproicum; aluminii hydroxydum; aminophyllinum; amoxicillinum;
ampicillinum; aqua bidestillata; atropini sulfas; beclometasonum; betamethasonum; calcii folinas;captoprilum; carbamazepinum; chlorambusilum; chloramphenicolum; chlorpromazinum;
clonazepamum; desmopressinum; diazepamum; erythromycinum; fluphenazinum; furosemidum;
gentalmuicinum; haloperidolum; hydrocortisonum; hydroxocobalaminum; ibuprofenum;
indometacinum; insullinum; isoniazidum; isos orbidi dinitras; levodopum + benserazidum;
levothyroxinum natricum; medroxyprogesteronum; melphalanum; metamizolum; meoclopramidum;
metronidazolum; morphini hydrochloridum; nystatinum; papaverini; paracetamolum;
phenobarbitalum; phenoxymethylpenicillinum; phytomenadionum; pilocarpini hydrochloridum;prednisolonum; pyridoxinum; rifampicinum; sal butamolum; sulfamethoxazolum + trimethoprimum;
testosteronum; thiaminum; tetracyclinum; thioridazinum; timololum; trihexyphenidylum; and
verapamilum.  The co-payment by the State on these drugs ranges from 38 per cent to 99 per cent of
the cost of the drugs.
V. STATUS OF PRIVATIZATION
A. P
RIVATIZATION IN THE AGRICULTURAL AND AGRIBUSINESS SECTOR
In September 1997, around 89 per cent of all agribusiness enterprises and agricultural
marketing were privatized, while 11 per cent still remained to be privatized and are going through
various stages of the privatization process.  There were 288 agricultural enterprises that were split into
4,194 independent units to attract more investment and facilitate the privatization process.  Of the4,194 units, 3,735 were fully privatized, 459 remain unprivatized and were under the privatization
process outlined by the Ministry of Public Economy and Privatization.
The GOA confirmed in October 1997 the privatiz ation plan of the World Bank, which called
for privatizing eight large-scale enterprises by 1998.  Of the eight large-scale SOEs in the food
industry five are expected to be fully privatized and have been converted into commercial companies(i.e., shareholding companies whose shares are owned by the state).  These include: the Bread Factory
of Tirana, the Flour Mill of Tirana, Beverages Factory (Canteen in Durres); the Sugar Factory in
Korca; and the Cigarettes Factory in Shkodra.  Fo r two other SOEs, Birra Tirana (a brewer) and a
Milk Factory (Ajka) documentation has been submitted to the Ministry of Public Economy and
Privatization as a first step to transform the ente rprises into commercial companies.  The Cigarette
Factory in Durres has ownership conflicts which have not been sorted out, prohibiting any new
developments in its privatization.
In June 1998, the agribusiness complex had only 30 enterprises that have not been privatized.
These enterprises employ about 2,100 persons.  About 20 of these enterprises have no economic
activity and they have been proposed for privatization.  An update of the other ten are described
below:
(i) The enterprise for  beer and yeast production of Tirana produces and sells beer locally.
The plan is to transform the enterprise into a commercial company.  The enterprise
imports about US$910,000 in raw materials, packaging material and other additional
inputs.  Its market share is about 25 per cent of the beer market and employs some 150
persons.
(ii) The food factory in Elbasan is involved  with processing.  Documentation is being
submitted to have the enterprise transformed into a private company.  It employs 34
persons.WT/ACC/ALB/25
Page 11
(iii) The "Ajka" milk factory deals with milk processing and the production of its by-
products.  Documentation for privatization is in process and the enterprise has 34
employees.
(iv) The Beverages Canteen in Durres produces alcoholic drinks such as wine, raki, etc.  It is
a commercial company which imports a value of US$13,300 worth of packaging material
and the exports cognac.
(v) "Alimpex" is involved with the import/export of machinery and equipment for the food
industry and food products, etc.  It is a trading company which has been proposed for
privatization.  It has only a limited range of activity in export-import of agriculturalcommodities.
(vi) The mill flour factory of Tirana produces wheat flour and its by-products.  It is a joint-
stockholding company which has been proposed to be privatized.  It imports about
US$1,000,000 worth of wheat and employs 72 workers.
(vii) The Tirana Bread Factory produces bread.  It is a trading company which has been
proposed for privatization.  Its sales of bread account for 6 per cent of the market and
employs 178 workers.
(viii) The Durres Factory for importing wheat mainly deals in foreign aid food products.  It
imports some 3,000 tons of wheat.  It is a SOE which has neither been proposed for
privatization nor transformed into some other business entity.
(ix) The Tobacco Cigarette Factory of Durres is involved in assembly, processing and
production and marketing of tobacco and domestic cigarettes.  It is a SOE which has not
been proposed for privatization.  There are shareholders of the former "Stamlesit"
enterprise who claim ownership in this factory.  Its cigarette sales account for 10 per cent
of the market.  Its imports accounted for more than US$1,000,000 and it employs about
500 persons.
(x) The Tobacco and Cigarette Factory of Shkodra is involved in assembly, processing,
production and marketing of tobacco and local cigarettes.  It has been proposed for
privatization, but the proposal has not yet been endorsed by the Ministry of Public
Economy and Privatization.
(xi) The Sugar Combinat in Maliq is a trading company which has been proposed for
privatization.
B. 
   PRIVATIZATION IN THE STRATEGIC SECTOR
Parliament approved the strategy for privatization of strategic sectors as well as the relevant
laws needed to support the process of privatization.  Separate laws shall be approved for privatization
of each specific strategic sector.
The strategic sectors (i.e., telecommunications , energy, mining, transportation, and water
utility) are the only sectors left to be privatized.  Privatization in these sectors will follow at least one
of three methods:WT/ACC/ALB/25
Page 12
- a partial or complete transfer of shares to the private sector,
- the transfer of use rights for natural resources, and/or
- the use of management contracts.
The first phase of privatization will begin during the second quarter of 1998 in which the
remaining State-owned enterprises (SOEs) of econom ic importance shall be transformed into joint-
stockholding companies.  By the end of the first half of 1998 all necessary amendments and new legal
acts shall be completed to support this process.
The second phase is scheduled to begin during the second half of 1998, whereby the shares
will be offered for sale.  For larger companies, an international tender will be arranged.  The screening
criteria will include the bid price as well as a development plan offered by the prospective investor.
The privatization process for strategic sectors will be coupled with other measures such as
training of people to compensate for the decrease in the labour force during privatization.  Thedetailed plan for privatization will depend on the specific sector of the economy.  These processes are
described in turn.
1. Telecommunications Sector
Of the strategic sectors, telecommunications is expected to be the first that is privatized.
There are two companies operating in the telecommunications sector: Telekom, which operates thefixed cable system, and Albania Mobile Cellular company (AMC).  The time schedule foresees the
privatization of AMC, by the second half 1998 and privatization of Telekom during 1999. During the
first quarter Telekom will be transformed into a private company and an international tender is
expected.  It will be possible to merge Telekom and AMC to exploit existing or potential synergies.
The State may ask for the golden share (details still pending).  No more than 20 per cent of the shareswill be sold to the public in exchange for vouche rs.  Prices in the telecommunications sector are
international rates and cover economic costs.  The law on "Telecommunications" has been amended
and the law on "Regulatory Entity of Telecommunications" has been passed.  The process of
organizing this entity has begun.  A copy of each of these pieces of legislation is included in the
supplementary materi al.(WT/ACC/ALB/24)
2. Oil and Gas Sectors
The State-owned oil and gas company, Albpetrol, is a vertically integrated company whose
activities include exploration, drilling, refining marketing and servicing.  To partly offset the negative
effect of its financial position, Albpetrol has entered into cooperation with foreign companies.
Privatization of gas and oil is expected to occur during 1999.
Laws will be amended to permit the sale of shares to investors, foreign or nationals.  Less
than 20 per cent of the shares shall be exchanged for vouchers through a public offering.  The Statewill keep the golden share (to be specified at a later date) and use it only for issues of national
importance and not for those related to the commercia l activity of the company.  The golden share
will be limited in time, but the duration will depend on a number of internal and external factors (to be
specified later).
3. Electrical Energy Sector
The only supplier of electricity (of which 95 per cent is hydro-powered production) is the
Albanian Energetic Corporation (KESH), a vertically integrated company.  Privatization will aim atWT/ACC/ALB/25
Page 13
improving service, quality and corporate efficiency.  The legal framework for privatization is being
prepared and the commencement of the process of privatizing local hydro-power stations is expected
to begin in September 1998.
The privatization of KESH will pass through two phases, the first being through the use of
management contracts.  During this first phase two projects will continue to be implemented: therehabilitation of existing hydropower plants, and transmission and distribution networks; and the
improvement of corporate financing.  The most probable approach for the privatization of KESH will
begin with a management contract and after a period of three to five years, in a second phase, it will
be sold to private investor(s).  The State intends to  keep the golden share, in particular, for the issues
concerning the transmission network (details are forthcoming).  No more than 20 per cent of the
shares will be sold to the public in exchange for vouchers.  Privatization will be coupled with price
liberalization in which electricity rates will approach  marginal cost pricing in a step-by-step approach
(i.e., first recovering full economic cost and then marginal cost pricing).  All other prices in the energy
sector are liberalized.
4. Mining Sector
Privatization in this sector, expected to begin in August 1998 and continue through 1999, will
aim at improving the efficiency of exploitation of mineral resources.
(a) Chromium
Albkrom is the SOE operating the chromium industry which includes mines, enrichment
plants and ferrochromium facilities.  The sale of Albkrom to investors (foreign or national) is planned.
The State has no intention to maintain interests in  the privatized company.  The government is to
arrange an international tender to begin negotiations with potential investors.  A number of non-effective mines in the chromium sector will be privatized during the fourth quarter of 1998.
(b) Copper
Albbaker is the SOE operating in the copper industry.  The plan is to first transform the SOE
into a joint-stockholding company during the first ph ase and to offer the firm for sale.  The procedures
of the transformation of this enterprise is continuing despite the legal problems of an ex-joint venturearrangement.
5. Transportation Sector
In this sector only the airline companies, ports and railways will be qualified as strategic.
(a) Airlines
As a first step Albtransport and the National Agency of Airlines (ANTA) will be transformed
into commercial companies in October 1998.
(b)     Ports
The ports will be transformed into commercial companies and possible scenarios include the
transformation of ports into land and yard ports, where the State will retain ownership of the portal
infrastructure.  This process is expected to begin in October 1998.WT/ACC/ALB/25
Page 14
(c) Railways
The railway enterprise will be transformed in a commercial company during 1998.  Some
auxiliary sectors will be offered for sale.  Possible scenarios of privatization are still under
consideration.
6. Water Utility Sector
The water supply sectors of Durres, Tirana, and the rural area of Tirana have been studied and
are being prepared for privatization.  In the water utility sector, the first step, after transforming
existing SOEs into commercial companies, will be to arrange management contracts.  A draft decision
has been prepared for the Council of Ministers which calls for the implementation of management
contracts in the above mentioned subsectors and the subsector of Elbasan.  The management contracts
are expected to be implemented by the end of 1998.  The process of transforming State-owned water
stations into stockholding companies has started for 18 stations.  Privatization will be coupled withprice liberalization.
7. Privatization in the banking sector
There is no specific legislation applied to privatization in the banking sector.  The World
Bank, the Ministry of Finance and the Bank of Albania have started to develop a small strategy on
privatization of banks.  Some banks have been broken up into the solvent and insolvent components tofacilitate their transfer to the private sector.  A two-year period has been set aside to deal with the
banking situation, i.e., to decide whether to liquidate or find another solution.
Technical assistance is being provided for auditing the three State-owned commercial banks
and to get the balance sheets up to date.  An action plan is being developed with the assistance of the
World Bank.
8. Other Economic Sectors
All the other economic units that are not qualified as strategic shall be privatized through
auctions either as going-concerns or by liquidation.  There are some 600 enterprises and the majority
of them will be sold during 1998.
The existing joint-venture companies where the State has participation have proved to be very
problematic.  The intention is to immediately offer for sale the State's interests respecting the right of
the first refusal.
A copy of the Law on the "Privatization Stra tegy of Sectors of Primary Importance" is
provided in the supplementary material.
C. P
RIVATIZATION IN THE NON -STRATEGIC SECTOR
For the non-strategic sectors, a one-year period is provided to accomplish the following tasks:
− preparation of legal and sub-legal acts to support the process;
− review of inventories of the SOEs and State commercial companies;
− completion of an information base on the State-owned capital in these enterprises at the
local and national level;WT/ACC/ALB/25
Page 15
− re-training of staff to prepare them with an understanding of new concepts and the
program;
− categorization and the division of enterprises according to their economic state and size;
− establishment of groupings of enterprises which have similar profiles to ensure a
consistent transfer of State-owned properties.
The process of privatization follows the application of the legal framework which classifies
enterprises into four categories:
− SOEs with no economic activity (of which there are 220 enterprises)
− SOEs with stable economic activity (of which there are 100 enterprises)
− State commercial companies (of which there are 51)
− joint venture enterprises (with limited liability) between commercial enterprises and the
State (of which there are 100 of these ventures, some with problems between partners).
The transfer of SOEs with no economic activity is defined in the Decision of the Council of
Ministers Number 195 (20 February 1998), and aims at maximizing the value of State capital.
Privatization is achieved through a tests of the value of the market through direct sales, sales by
reserves or conditional sales, leasing contracts and rental contracts.  For SOEs with no economic
activity, the form of privatization is determined after an analysis is made to evaluate and classify the
enterprise taking into consideration the objective to maximize revenues and the effectiveness of the
process.  There are 89 enterprises which will undergo direct sales or conditional sales, 22 which will
be sold through leasing contracts (mostly buildings), and contracts are being prepared for another 30
enterprises.
The second category of SOEs must go through a process of transformation to become a
commercial enterprise and then to be privatized with the state commercial companies of the third
category of enterprises.  This is in conform ity with Law Number 8334 (23 April 1998) "On the
Privatization of Commercial Companies Which Act in Non-strategic Sectors" and the relevant
Decisions of the Council of Ministers.  There have been 46 SOEs converted into commercial
companies and during July 1998 the rest of the enterprises of the second category will be converted
into the third category.  The commercial companies w ill be privatized starting in July 1998 (51 firms
in particular) and during August-September 1998 the procedures for the new companies will beinitiated (i.e., those that will have been transformed from SOEs).
The State capital in joint venture enterprises wi ll be privatized in conformity with Law
Number 7638 (19 November 1992) "On Commercial Co mpanies" and the Decision of the Council of
Ministers Number 230 (4 April 1998) "On the Privatization on the Part of State Capital of Companies
with Joint Venture Capital".  The objective is to of fer to the non-state partner the right to pre-purchase
the final value of the auction.  This process will be initiated for 31 companies with jointly-owned
capital.
Until now, there has neither been a Government decision nor a specific law on the
privatization of commercial SOEs.  The main obstacle is the foreign debt that these enterprises
inherited from the past system which averages US$70 million.  However, a memorandum wasapproved by the GOA where the methods to solve the problems and create possibilities for the
privatization of these enterprises were outlined.  Suggestions for their privatization are various, but
the following methods are the most likely:WT/ACC/ALB/25
Page 16
(i) For SOEs which initially need to be transformed into commercial enterprises, it is
proposed that the process should start with the privatization of the assets of the firm.
However, some of the warehouses and offices located in Shkozet and the harbour of
Durres should not be included in the foundation capital of these enterprises.  In such
cases the property should remain tat of the state.  Enterprises which initially will betransformed into commercial enterprises and later proposed privatization include: the
enterprise of Albkoop in Tirana; Agroexport in Tirana; Artsexport in Tirana;
Industrialimpex in Tirana; Albacontrol in Durres; and Machineimpex in Tirana.
(ii) Some SOEs are proposed to be transformed into stockholding commercial enterprises in
which the state initially maintains controlling interest in the shares.  These SOEs include:
Refrigerator Enterprise Number 2 in Tirana; Refrigerator Enterprise of Durres; and theCommercial Wholesale Enterprise in Durres.
(iii) Some SOEs fall under the decision of the Council of Ministers (No. 195, dated
20 February 1998) "On the Privatization of Enterprises Which Cannot Be Transformed".
These include Distribution of Spare Parts Enterprise in Durres; Machinery andCommercial Appliances Plant in Tirana; and Printing House of the Commercial Chamber
in Tirana.
A copy of the Law on the "Privatization of Commercial Enterprises which Function in Non-
strategic Sectors" is provided in the supplementary material. (WT/ACC/ALB/24)
VI. REVIEW OF  ALBANIA'S CONFORMITY WITH THE SPS AND TBT
AGREEMENTS
A. S
UMMARY OF  COMPLIANCE WITH THE SPS AND TBT A GREEMENTS
Based on the fact that the EU system to a large degree complies with the SPS and TBT
Agreement, the ongoing approximation and alignmen t of Albanian legislation to that of the EU
secures that Albania complies with the SPS Agreement and Article 2.7 of the TBT Agreement  whichdeals with the recognition of equivalence concerning the labeling of food.
The present Albanian philosophy of the import control system has to be modified to comply
with WTO's SPS provision that member States shall give positive consideration to consider
equivalence of the control system of other states.  In such cases, there is a need to reduce the extent of
control by importation to Albania, and replace it by other means giving the same security for public,
animal and phytosanitary health.  What follows is the status of each of the relevant areas covered by
the SPS Agreement.  The information provided in section B is taken from a memorandum from areport from the Policy Advisory Unit in the Ministry of Agriculture and Food.
B. R
EVIEW OF LEGISLATIVE AREA FOR CONFORMITY
Several areas have been evaluated under a study entitled: "Alignment and approximation of
Albanian Legislation and Enforcement Services Related to Veterinary Control, Plant Health, Animal
Nutrition, Food Control, Quality Standards and Labeling Requirements".  In particular, the studyevaluated the following areas:  (1) Plant health and animal nutrition legislation (DG VI) which covers
seeds and propagating material; plants or plant products; animal nutrition; plant protection products;
pesticide residues; community plant variety rights; organic farming; (2) Agricultural markets (DG VI)
which covers beef and veal; sheep meat and goat meat; fruit and vegetables; wine and derived
products; pork, poultry and eggs; (3) General food legislation (DG III unless otherwise specified)which covers food labeling; food additives; flavourings; materials and articles in contact with food;
official control; hygiene; contaminants; numerous vertical directives; radioactive; contamination ofWT/ACC/ALB/25
Page 17
foodstuffs (DG IX); product safety legislation ( DG XXIV); and (4) Veterinary legislation (DG VI
unless otherwise specified) which covers trade in live animals, semen, ova and embryos; trade in
animal products; control measures; marketing of animal products; measures covering more than one
sector; import from third countries of live animals and animal products; control and protection
system; breeding stock and pure-bred animals; animal  welfare; medicines or veterinary use (DG III).
C.     RELEVANT LAWS ADOPTED DURING THE LAST YEARS
During the last years numerous laws have been adopted, based on international
recommendations and standards.  They include the following: (1) Law Number 7850, on the Civil
Code; (2) Law Number 7630, on Standards—new law not yet approved; (3) Law Number 7659, on
Seeds and Seedlings; (4) Law Number 7662, on Plant Protection Service; (5) Law Number 7627, on
Zootechnical Service; (6) Law Number 7908, on Fi shery and Aquatic Culture; (7) Law Number 7674,
on Veterinary Service and Inspection; (8) Law Number 7643, on State Sanitary Inspection; and(9) Law Number 7941, on Food.
D. A
N ADDITIONAL LIST OF LEGISLATION AND SUBLEGAL ACTS DRAFTED FOR THE LAW ON
FOOD
These include: (1) "Law on Viticulture and Wine"; (2) Decision of the Council of Ministers,
(3) "On the Construction Expansion Permit of F ood Facilities; (4) Order, "On the technical-
technological permit for the Construction and Expansion of Food Facilities"; (5) Order, "On the
Technical-technological Permits and Professional for the Production of Foodstuffs"; (6) Regulation,
"On Technical and Technological Requirements to be Met by Food Facilities"; (7) Directive, "On
Requirements and Control of Raw Materials for Industrial Processing"; (8) Directive, "On Production
Documentation"; Directive, (9) "On quality and Safety Control of Foodstuffs by  Producers";
(10) Directive, "On Storage Schedules of Food Products and Procedures for Their Re-evaluation;
(11) Regulation, "On General Requirements for the Storage and Transportation of Fresh and
Processed Foodstuffs"; (12) Decision, "On Distribution and Marketing of Foodstuffs"; Regulation,
"On the Procedures of the Taking of Samples and Conducting Tests on Foodstuffs"; includes
appendices for the certification model of the taking of samples, a model of the test certificate, and themethods of taking and delivery of samples to the laboratory for grains and grain products; milk and its
products; meat and meat products; plant and animal fats and oil; oilseeds; wine and alcoholic drinks;
coffee, tea, and cocoa; and tobacco and its products; (13) Regulation, "On the Duties and Rights of
Food Inspectors"; (14) Regulation, "On Cases of the Blocking of Imports and the Exchange of
Information with Exporting Countries"; (15) Decision of the Council of Ministers, "On the Division
of Competencies and Responsibilities amongst F ood Control State Bodies"; (16) Decision of the
Council of Ministers, "On Competences of Natio nal Board for Food Control"; (17) Regulation, "On
the Case of Blockage of Food Products and Exch ange of Information with Exporting Countries";
(18) Decision of the Council of Ministers, "O n the Division of Competence, Tendencies and
Responsibilities of State Authorities of Food Control"; and (19) Decision of the Council of Ministers,
"On the Competence of the National Board of Food Control".
E. T
HE ALBANIAN FOOD CODEX
Parts of the Albanian food codex include: (1) Food additives; (2) packaging and labeling of
food products; (3) permitted norms of pesticides in food products; (4) microbiological norms allowed
in raw materials and food products; (5) regulation for the vine industry and its by-products; and
(6) regulation on the alcoholic beverages industry.WT/ACC/ALB/25
Page 18
F. UPDATE ON TBT COMPLIANCE
The Law on "Standards" is still in the process of approval at the ministerial level.  An updated
copy of the draft under review by the various ministries is included in the supplementary materials.
There are very minor changes in this version of the legislation relative to the version previously
submitted to the WTO.  (WT/ACC/ALV/24)  The legislation as drafted with foreign assistance isconsistent with the WTO and the TBT Agreement.
All standards are to be voluntary and technical regulations mandatory.  Standards will be
applied to foreigner and local producers in compliance with national treatment.  Technical regulations
will be used to protect human, animal or plant life or health or environment without being more trade-
distorting than necessary.  All DSC work will be based on the adoption of international (ISO) and
regional (EN) standards.   In 1990, Albania had not adopted any foreign standards; in 1998 the
Republic has adopted 52 ISO, 4 ICE, 87 EN and 21 from other States.  The goal is to reduce thecreation of national standards and to increase the adoption of the above mentioned.  Accreditation will
be based on European standards series EN 45000 for certification; however, other foreign certification
bodies can carry out certification activities in Albania.  The DSC is a full member in ISO and an
affiliated member in CEN.  In the future, the DSC will be a member in IEC and CENELEC.  In the
preparation of standards, the emphasis is on product performance requirements rather than on designor descriptive requirements.  An Information Center for Standards has been created in compliance
with the TBT Agreement's call for an enquiry point.
The Code of Good Practice for the Preparati on, Adoption and Application of Standards has
been translated into Albanian and will be adopted as it is once the Law on Standards is approved.  The
Directory of Standards is preparing the decree of  the Albanian Government to assure that all
remaining activities will be in compliance with the TBT Agreement.
VII. COMPLIANCE WITH TRIPS
A. P
ROPOSED AMENDMENTS TO THE LAW ON INDUSTRIAL PROPERTY
Respective articles of the
Law on Industrial PropertyRespective suggestions from the
TRIPs AgreementProposed amendments to the Law on
Industrial Property
Article 68
The registration period is 5yearsSec. 4/ Industrial Design Art.25
The time period for the protection isneeded ten yearsDesigns are protected for a ten-year
period against a maintenance paymentat the conclusion of the first period.
Issue is not covered Sec.4/Industrial Design Art. 25;
Protection esp. of textile designsAdd a specific article in the Law of the
Author’s Rights
Article 93Designations of originsSec 3/Geographic Indications/Art.22 Article 93
The designation of origins and
geographical indications
Add point 1 and 2 a) of TRIPs as wellas 3)
Issue is not covered Article 23
Additional protection for geographicalindications for wines and spiritsArticle 94 (amendment)
Compile it in accordance with point 1of Art 23 of TRIPs
Article 92Invalidity as a result ofnon-usage is 5 yearsArt. 19/Requirement for use
Invalidity period is 3 yearsArticle 92
The non-usage period should bereduced to 3 years after the day of
registration
Add point 2/e:The mark is not invalidated if duringthe 3-year period it is used by a thirdparty under authorization by the ownerof the trademark.WT/ACC/ALB/25
Page 19
Respective articles of the
Law on Industrial PropertyRespective suggestions from the
TRIPs AgreementProposed amendments to the Law on
Industrial Property
Article 86
The deadline of theregistration and its kindArt.18/ Term of protection
The registration of mark shall berenewable indefinitelyArticle 86
The registration of the commercial andservice mark is done for a ten years
period and can be renewed once in 10
years with the request of its owner
Article 76Inconsistency withprevious rightsArt 16/3
Rights conferredArticle 76, point 2/b
In accordance with Art. 16, point 3 ofTRIPs
Summary: The agreement on TRIPs mainly affects three Albanian pieces of legislation: (1)
Law on Industrial Property, (2) Law on Copyrights and (3) Law on Competition.  It should be noted
that two challenges related to TRIPs compliance are foreseen: (a) enforcement of  border control
measures and (b) the improvement of juridical proceedings in order to expedite cases.  UNDP has
financed a technical science information center which will contain a computerized library in the field
of patents and trademarks.  More detailed information is provided in the next table.
B. COMPLIANCE WITH THE TRIP S AGREEMENT
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
General Obligations IP Agreements to which the country adheres.
Compliance with Articles 1 through 12 and
Article 19 of the Paris Convention for the
Protection of Industrial Property in respect of
Parts II, III, and IV of the TRIPs Agreement.TRIPs Article 2.Paris Convention;
Madrid Agreement;
Patent Cooperation Treaty (PCT)
Under Paris, Article 1(2), industrial property
has as its object patents, utility models,industrial designs, trademarks, service marks,trade names, indications of source or
appellations of origin, and the repression of
unfair competition.Article 1 of Albania's Law on Industrial Property identifies
as objects of the Law:- patents for invitations and utility models;- trademarks and service marks;
- industrial designs; and
- appellations of origin.
In  Paris, Article 1(3), industrial propertyapplies not only to industry and commerceproper, but to agricultural and extractiveindustries and to all manufactured or naturalproducts, e.g., wines, grain, tobacco leaf, fruit,
cattle, minerals, mineral waters, beer, flowers,
and flour.
Under Paris, Article 2, nationals of  Membersare to enjoy in other Members the advantagesthat their respective laws grant to nationals, andshall have the same protection and the samelegal remedy against any infringement of their
rights if they conform to the conditions and
formalities imposed upon the Member’snationals.In WT/ACC/ALB/8/Add.8, Albania responds that Albanian
intellectual property law provides national treatment, exceptthat foreign nationals must be represented before the PatentOffice by an Albanian patent and trademark agent.  Article2(2) of the Law on Industrial Property provides national
treatment for legal and natural persons that are foreign
nationals either on the basis of international treaties andconventions to which Albania is a Party or on the basis ofreciprocity.
Paris, Article 3, requires that nationals of non-Member countries domiciles or that have "realand effective" industrial or commercial
establishments in a Member country be treated
as nationals of a Member country.It is not clear from the Law on Industrial Property whether
domiciliaries of WTO Members or that have "real andeffective" industrial or commercial establishments in a
Member country will receive national treatment.WT/ACC/ALB/25
Page 20
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Under Paris, Article 4.a  right of priority is to be
given an applicant for a patent, for registrationof a utility model, an industrial design, or of atrademark who has filed the equivalent of a
regular national filing under the domestic
legislation of a Member country.  The periodsof priority are to be 12 months for patents andutility models, and 6 months for industrialdesigns and trademarks.  The Article discussesthe technical details of granting priority in
depth.Article 18 of the Law on Industrial Property provides for a
right of priority as required by the Paris Convention.
Article 4bis states that patents obtained for the
same invention in various members of the Paris
Union are independent of each other.
Article 4ter requires that inventors have the right
to be named as such in the patent.Article 10 of the Law on Industrial Property requires that the
inventor be named in the patent for his invention unless theinventor files a declaration with the Patent Office asking notto be so named.
Under Article 4quate r restrictions or limitations
on the sale of a patented product or a product
produced by a patented process cannot be the
grounds for refusing a patent or invalidating onealready issued.There does not appear to be anything in the Law on
Industrial Property that would permit a patent to be refused
or invalidated based upon restrictions or limitations on the
sale of a patented product or a product produced by apatented process.
Under Article 5(A)(1), importation of a patentedproduct manufactured in a Paris Union countrycannot be the basis of forfeiture of the patent.There does not appear to be anything in the Law on
Industrial Property that would permit a patent to be forfeitedbased on the fact that the patented product is imported.
Article 5(A)(2) and (3) authorize countries touse compulsory licensing as a means to prevent
abuses, such as the failure to work, but they
may not forfeit a patent unless the grant of acompulsory license would not be sufficient toprevent the abuse.  Proceedings for forfeiture orrevocation cannot be institute until two yearsafter the grant of the first compulsory license.Article 39 of the Law on Industrial Property authorizes the
grant of a compulsory license for non-working or
insufficient working after a period of the greater of four
years from the filing date or three years from grant of thepatent, so long as the Patent Office is not convinced thatcircumstances justifying the non-working or insufficientworking exist.  Article 40 authorizes the Minister toauthorize a government agency or a person to make, use, or
sell a patented invention or one for which an application for
patent has been filed where the national security or publicsafety so require.  The patentee is to be paid equitableremuneration and the Minister's decision is appealable.
Article 5(A)(4) prohibits application for acompulsory license for failure to work until four
years have passed since the application was
filed or three years from date of grant and nocompulsory license is to be granted if thepatentee justifies the failure to work.  Licensesare to be non-exclusive, and may not be
transferred except with the enterprise or
goodwill that exploits the license.Article 39 of the Law on Industrial Property authorizes the
grant of a compulsory license for non-working or
insufficient working after a period of the greater of four
years from the filing date or three years from grant of thepatent, so long as the Patent Office is not convinced thatcircumstances justifying the non-working or insufficientworking exist.  The Law is silent regarding the nature of the
license and the conditions under which it might be
transferred.
Article 5(B) prohibits forfeiture of industrialdesigns for failure to work or for importingarticles corresponding to those that areprotected.There does not appear to be anything in the Law on
Industrial Property that would authorize forfeiture of anindustrial design for failure to work or for importingproducts protected.WT/ACC/ALB/25
Page 21
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Article 5(c) prohibits cancellation of a mark for
unjustified non-use before a reasonable periodof time has passed and permits the proprietor touse differing elements that do not diminish the
distinctive character of a mark without
invalidating the registration or diminishing theprotection granted the mark.  Concurrent use ofthe mark by co-proprietors is permitted so longas the public is not mislead.Article 92 of the Law on Industrial Property authorizes
revocation of registration of a trademark only after a periodof five years or unjustified non-use.  A mark may not berevoked if, during the period, there has been use by a
licensee under a contract recorded in the register of marks;
use of the mark in a modified form that does not alter itsdistinctive character; or use of the mark in publicity andbusiness correspondence.
Under Article 5(D), protection of patents,registered trademarks, and industrial designscannotThe Law on Industrial Property does not condition
protection for industrial property on any marking.
Article 5bis requires that a grace period of at
least six months be provided for the payment of
maintenance fees for industrial property, but asurcharge is permissible.  Countries areauthorized to restore patents that lapsed for non-payment of fees.Article 28(3) or the Law on Industrial Property provides for
a six-month grace period for patent maintenance fees to be
paid, with a supplementary fee for the delay.
Article 5ter prohibits a Paris Member from
making use of patented devices aboard a vessel,
aircraft, of land vehicle temporarily or
accidentally in the territory or the Member.The Law on Industrial Property does not appear to provide
for such an exception.
Article 5quate r requires that process patent
owners have all the rights against an importedproduct produced by the patent process that theywould have with respect to productsmanufactured at home.Article 27(2)(b) of the Law on Industrial Property gives the
patent owner the right to prevent the offering or putting onthe market of a product directly obtained from the patentedprocess, the using of such product, or the importing orstocking of such product for offering or putting the product
on the market.
Article 5quinquies requires that Paris Members
protect industrial designs.Part II of the Law on Industrial Property provides for
protection of industrial designs and Article 2(1) states that
such protection "shall not exclude any other rights providedfor in the law, in particular, rights based on the Law ofCopyright.
Article 6 makes the conditions for filing andregistration of trademarks subject to domesticlegislation but also makes filing and registration
independent of those in other countries,
including the country of origin.The Law does not appear to contain any provision that so
specifies.
Article 6bis requires parties, ex officio if legally
possible or at the request of an interested party,to refuse to register or, for a period of at least 5years, to cancel the registration of a trademarkconfusingly similar to a well-known mark.  No
time limit is placed on a mark used in bad faith.Article 76(2)(b) provides that a sign shall not be protected if
it is a well-known mark within the meaning of Article 6
bis,
but does not explain further.
Article 6ter requires Members to refuse to
register or to invalidate the registration that
includes, without authorization, armorialbearings, flags, state emblems, official signs andhallmarks, etc.  An exception is provided forowners of rights acquired in good faith before
the Convention entered into force for that
country.Article 75 prohibits registration as a mark or as an element
of a mark, state names (complete or abbreviated); state
emblems; official hallmarks adopted by states; abbreviationsand emblems of intergovernmental organizations; andreligious symbols.WT/ACC/ALB/25
Page 22
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Article 6quate r makes the assignment of a mark
valid if the portion of the business or goodwillof the business together with the exclusive rightto manufacture and sell the goods bearing the
mark are also transferred.Article 85 of the Law on Industrial Property provides only
for the recordation procedure but does not imposelimitations on the ability to assign a mark.
Article 6quinquies requires that trademarks duly
registered in a Member be accepted for filing in
other Members, with certain reservations, andestablishes the conditions under which atrademark may be denied registration or may beinvalidated.Article 78(5) of the Law on Industrial Property provides for
priority filing dates.  The provisions of Articles 73-77
appear to comply with Paris Article6
quinquies.
Article 6sexies states that Paris Members
"undertake" to protect service marks without
being required to provide for their registration.Part III of the Law on Industrial Property provides for
protection of both trademarks and service marks.
Article 6septies requires that trademark owners be
able to oppose or request cancellation of a
registration of their trademarks applied for bytheir agent or representative without theirauthorization "unless the agent or representativejustifies his action".Article 91 provides for invalidation of a mark if there are
earlier rights, which, under Article 76(2)(a) would include
the rights of a trademark owner which will be registered bythat trademark owner.
Article 7 states that the nature of the goods towhich a trademark is applied may in no case be
an obstacle to the registration of the trademark.
(Duplicate language is in TRIPs Article 15 .4.)Nothing in Articles 74, 75, or 76 of the Law on Industrial
Property, which provide the basis for refusal of registration
would authorize refusal based on the nature of the goods to
which the trademark applies.
Article 7bis requires that Members permit
registration of collective marks belonging toassociations the existence of which is notcontrary to the law of the country of origin,even where the association is not established in
the country where protection is being sought.Article 73 of the Law on Industrial Property authorizes
registration of collective marks used to designate the goodsor services of an industrial or commercial cooperative or anassociation or like organization of several enterprises.
Article 8 requires that trade names be protectedby Members without the necessity ofregistration, whether or not the names are partof a trademark.
Article 9 requires seizure on importation orexclusion or goods bearing a trademark or tradename without authorization, unless a country’s
laws provide for neither remedy, in which case
domestic actions and remedies must beavailable.
Article 10 applies the obligation of Article 9 tothe direct or indirect use of false indications ofsource of goods, or false indication of theproducer, manufacturer, or merchant of suchgoods.
Article 10bis requires Members to provide
protection against unfair competition, including
against acts that create confusion of variouskinds about the goods or activities of acompetitor, that consist of false allegationsabout a competitor, or that are apt to mislead thepublic regarding a competitor’s goods.WT/ACC/ALB/25
Page 23
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Article 10ter requires that Members undertake to
assure to foreign nationals effective legalremedies to repress actions referred to inArticles 9, 10 and 10
bis, and to allow federations
and associations representing foreign
businesses, on the basis of reciprocity, to takeaction in court and before administrativeauthorities to repress such acts.
Article 11 requires that temporary protection,consistent with domestic legislation, be affordedto patentable inventions, utility models,industrial designs and trademarks in respect of
goods exhibited at official or officially
recognized international exhibitions held intheir territory.The Law on Industrial Property does not appear to provide
such temporary protection for patentable inventions relatedto goods exhibited at official or officially recognizedinternational exhibitions held in their territory.  Article 64 of
the Law provides for temporary protection on industrial
designs in such circumstances.  Article 79 of the Lawprovides for temporary protection for trademarks in suchcircumstances.
Article 12 requires Members to establishindustrial property offices for patents, utilitymodels, industrial designs and trademarks for
the communication to the public through
publication of a periodic journal of the names ofpatent owners with a brief designation of theirinventions, and the reproduction of trademarks.The Patent Office of the Republic of Albania is created in
Part IV of the Law on Industrial Property and givenresponsibility for implementing the provisions of the Law
on Industrial Property.  Patent applications for inventions
and utility models are published after 18 months underArticle 18 and granted patents are published under Article21(5).  Article 66(2) provides for the publication ofindustrial designs.  Article 83(3) provides for the publicationof registered trademarks.
Article 19 authorizes Members to enter into
separate and special industrial property
agreements among themselves, so long as thoseagreements do not contravene the provisions ofParis.
National treatment, with exceptions allowed inthe Paris, Berne and Rome Conventions.Article 3.In WT/ACC/ALB8/Add.8, Albania responds that Albanian
intellectual property law provides national treatment, exceptthat foreign nationals must be represented before the Patent
Office by an Albanian patent and trademark agent.  Article
2(2) of the Law on Industrial Property provides nationaltreatment for legal and natural persons that are foreignnationals either on the basis of international treaties andconventions to which Albania is a Party or on the basis ofreciprocity.
Most favoured nation treatment, with
enumerated exceptions. Article 4.It is not clear whether Albania provides most favoured
nation treatment in connection with intellectual property.
Another consideration is how this obligation will beimplemented.
Copyright and Neighbouring Rights Citation to copyright and related laws.
Compliance with Articles 1 through 21 of theBerne Convention with the exception of Article6
bis. Article 9.1.Albania is a Party to the Berne Union.
Article 2 defines "literary and artistic works" as
"every production in the literary, scientific and
artistic domain whatever may be the mode orform of its expression," giving examples.Limitations related to speeches are provided inArticle 2
bis.The Law on Copyright protects the literary, artistic, public
and other works including any original intellectual creation
of this nature, regardless of their form of expression(examples).  The protection does not depend on the mannerand form of expression, quality or aim of the work.  Nolimitations related to speeches are foreseen in the Law.WT/ACC/ALB/25
Page 24
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Article 3 requires that protection be provided to
the works of authors who are nationals of BerneUnion members and to works of nationals ofnon-Union countries if those works are
published in a Union member simultaneously
with publication in the non-Union country.This act is applicable also to a) unpublished works or
published for the first time in a foreign country from authorswith foreign citizenship and with permanent living in aforeign country, in the cases when the country when the
author lives, or when the works are published for the first
time offers the same protective measures for the authorswith Albanian citizenship or living in Albania for theirunpublished works or published for the first time in Albania;b) works which will be protected in Albania in accordancewith the international conventions where Albania
participates.
Article 4 requires that protection be providedcinematographic works not falling under Article
3 if the maker has a headquarters or habitualresidence in a Union member and to works ofarchitecture or artistic wo rks incorporated into a
building or structure in a Union member.The works of foreign authors are protected by the
dispositions of this Law and the international conventions of
which the Republic of Albania is a member.
Article 5 requires that authors enjoy the rightsrequired by Berne and any other rights a
country provides works on a national treatment
basis without being subject to any formalities.No special provisions are mentioned in the law.
Article 7 requires that the term of protection for
copyright be 50 years following the death of theauthor.  Special terms are authorized forcinematographic works, anonymous orpseudonymous works, photographic works and
works of applied art.Unless otherwise provided in this chapter, the moral rights
of the work are protected forever and the economic rights ofa work are protected during the author's whole life and 70years after his/her death.  The moral and economic rights ofan anonymous or nicknamed work are protected for 70 years
from the first day of the first legal publication.  The moral
and economic rights of collective photographic andaudiovisual work are protected for 70 years from the daythis work is legally offered to the public or 70 years after itscreation.  The moral and economic rights of applied arts areprotected for 25 years from the day of its production.
Article 8 gives authors of protected works the
exclusive right to make or authorize the making
of translations of the work.The author has the exclusive right on his work and he can
authorize c) the translation of the work.
Article 9 requires that authors be given the
exclusive right to authorize reproduction of thework in any manner or form with only limitedexceptions that do not conflict with the normalexploitation of the work and do not
unreasonably prejudice the legitimate interests
of the author.The author has the exclusive right on his work and he can
authorize the reproduction of the work and has the right tooppose any kind of violation, change or alteration on thework and any other action that would damage his reputationand name.
WT/ACC/ALB/23 states that under Section 6 of the Law on
Copyright reproduction for private purposes is permittedexcept for architectural works, works of fine art, musicalworks, exercise books or other one-use publications;computer programs except as specified in Section 13 of thelaw; or any other reproduction that would conflict with the
normal exploitation of the work or would unreasonably
prejudice the legitimate interests of the author.  UnderSection 9 of the Law, reproduction in connection withadministrative or judicial proceedings is possible withoutauthorization or remuneration.  Section 12 of the Lawprovides an exception to the reproduction right for pictures
of works permanently located in  public places except if the
work is the main subject of the reproduction, broadcast, orWT/ACC/ALB/25
Page 25
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Section 13 of the Law authorizes the owners of a copy of a
computer program to make a copy for archival purposes foruse of the program.  Section 14 provides an exception to thereproduction right in line with the E.S.'s directive on
decompilation.
Articles 10 and 10bis define certain authorized
"free uses of works."Free uses of works include: the free reproduction for
personal use; the free reproduction in the form of citation;
free usage for teaching; free reproduction from libraries andarchives; free reproduction for  legal and administrativepurposes; free use for the purpose of giving information;free use of pictures of publicly exposed works; freereproduction and adaptation for computer programs; free
use of computer programs; free temporary registration by
broadcasting agencies; and free public showing.
Under Section 8 of the Law, use for teaching is permittedwith attribution if such use is by way of illustration inpublications, broadcasts or sound or visual recordings andxerographic reproduction is permitted for teaching orexamination in educational institutions in limited
circumstances.  Under Section 11 of the Law, exceptions are
provided for broadcasting information and reproducingportions of works for the purpose of informing the public.Section 15 of the Law provides an exception for ephemeralrecordings of a work by broadcasting organizations thathave authorization to broadcast that work.  Section 16
provides an exception for public performance of works by
educational institutions, by the staff and students of suchinstitutions, if the audience is exclusively staff and studentsor the institution or students' parents and guardians andothers directly connected with the activities of the
institution.
Articles 11, 11bis, and 11ter require that authors
of dramatic, dramatico-musical and musicalworks and any translation thereof and authors ofliterary and artistic works, the exclusive right toauthorize the public performance of their works,
including by broadcast, public recitation and
any communication to the public.The author has the exclusive right to his work and he can
authorize: the preparation or adaptation, alteration or
transformation of the work; the presentation of the work inpublic; and the transmission of the work to the public bybroadcasting and rebroadcasting.
Article 12 requires that authors of literary orartistic works have the exclusive right toauthorize adaptations, arrangements and otheralterations of their works.The author has the exclusive right on his work and he can
authorize the preparation or adaptation, alteration ortransformation of the work.
Article 13 authorizes countries to imposereservations and conditions on the exclusiveright granted authors of musical works or
written works that are recorded.Articles 35, 36, 37 of the law are not applied when activities
provided by these articles are performed for private use,teaching, scientific research on the condition that the use
does not conflict with the normal use (of a show,
phonogram or transmission) and always without violating ata large scale the legal interests of the owners the rightsprovided in this chapter - Protection of Shows, Phonogramsand Programmes; for broadcasting the contemporary news;
for citation, for other purposes which are included in the
limitations for the economic rights of the literary and artisticworks, as provided in Chapter III of the Law.WT/ACC/ALB/25
Page 26
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
The obligation for an authorization mentioned in articles 35,
36 and 37 to register shows and transmissions, to producethem and to reproduce published phonograms forcommercial purposes, and not taken into consideration (are
not applicable) when the reproduction is done by a
broadcasting organization with its own means and for itsown programs only in case of broadcasting the registrationof a show or of its reproduction; broadcasting theregistration of a program or its reproduction or such aregistration of a program made according to the conditions
of this program.
Articles 14 requires that authors of literary andartistic works have the exclusive right to
authorize the cinematographic adaptation andreproduction of their works and the distribution,public performance and communication to thepublic  of the adaptation or reproduction,
without the limitations authorized under Article
13(1).The author has the exclusive right to his work and he can
authorize: the reproduction of the work; the import of the
work within the country with the purpose of its distributionas selling, leasing, renting, loaning, for/o the public; thepreparation of adaptation, alteration or transformation of thework; and the presentation of the work in public.
Article 14bis specifies that a cinematographic
work is to be protected as an original workwithout prejudice to any work that is adapted orreproduced and the author of thecinematographic work is to enjoy the samerights as the author of any other work.This law protects the literary , artistic, public and other
works, including any original intellectual creation of thisnature, regardless of their form of expression as forexample, audiovisual works; and the protection does notdepend on the manner and form of expression, quality oraim of the work.
Article 14ter requires "droit de suite" in
connection with subsequent sales works of art
and manuscripts.The author of a work may issue a license to third persons to
perform activities, which are included in his economic
rights.  These licenses may be exclusive or non-exclusive.
Article 15 requires that ownership of a work, forpurposes of litigation, be presumed to be thatwhich appears on the work in the usual manner.In order that the author of a work is recognized to be as
such, and consequently have the right to make a legalcomplaint in case of procedural violation, in lack of contraryfacts, t will be enough that his name appears on the work inthe usual manner.
Article 16 requires that infringing copies of awork be subject to seizure whether domestically
produced or imported.The author of the persons who are enjoying their rights to a
work according to this law are entitled to challenge in court
if they are hindered in exercising these rights or someone
else is using them unjustly.
Article 18 requires that copyright protection beapplied to all works which, at the momentBerne becomes effective, have not fallen intothe public domain in the country of originthrough the expiry of the term of protection.No eventual provisions are cited in the Law.
Article 19 authorizes Union members to provide
greater protection than that required by the
Convention.No eventual provisions are cited in the Law.
Article 20 authorizes Union members to enter
into special agreements among themselves toprovide more extensive rights than thoseprovided by Berne.No eventual provisions are cited in the Law.
Protect computer programs, whether in source
or object code, as literary works under theBerne Convention.  Protect compilations of
data, whether in machine readable or other form
are to be protected as intellectual creations ifthey constitute such. Article 10.This Law on Copyright protects written works including
computer programs and data compilations as literary works.WT/ACC/ALB/25
Page 27
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Provide rental rights at least for computer
programs and cinematographic works withcertain exceptions.  Article 11.The author of an audiovisual work, or any other work such
as phonograms, computer programs, data base, and anyother work which is read by apparatus, has the exclusiveright to allow giving on lease or lending of his work.
Provide a term of protection of fifty years fromthe death of the author (Berne Article 7.1 and
TRIPs Article 9.1) or, for works the term of
which is not measured by the life of the author,a term of 50 years from the end of the calendaryear of authorized publication, or, if notpublished within fifty years from making, fiftyyears from the end of the calendar year of
making. Article 12.The moral rights are protected forever and the economic
rights of a work are protected during the whole author's life
and 70 years after his death.  The moral and economic rights
of an anonymous, nicknamed, collective photographic oraudiovisual work are protected for 70 years from the daythis work is legally offered to the public or in a contrarycase, for 70 years from the day of the production of thework, i.e.,  70 years after its creation.  The protection
provided in this chapter lasts to the end of a calendar year.
Confine limitations and exceptions to exclusive
rights to certain special cases which do notconflict with a normal exploitation of the workand do not unreasonably prejudice the rightholder’s legitimate interests.  Article 13.As previously stated ... Free uses of works include: the free
reproduction for personal use; the free reproduction in theform of citation; free usage for teaching; free reproductionfrom libraries and archives; free reproduction for  legal andadministrative purposes; free use for the purpose of givinginformation; free use of pictures of publicly exposed works;
free reproduction and adaptation for computer programs;
free use of computer programs; free temporary registrationby broadcasting agencies; and free public showing.
Provide performers with the right for 50 yearsfrom the date of a performance to preventunauthorized fixation of their unfixedperformances and of reproductions of such
fixations and to prevent the unauthorized
broadcast by wireless means andcommunication to the public of their liveperformances.  Article 14.1 and 5.No one can (1) broadcast programs unauthorized by their
performers (executors); (2) communication to the public oftheir show, except for a registration of the program or abroadcast of the show; (3) registration of an unregistered
show.  The duration of the protection provided for in this
article is 50 years,  starting from the en of the year in whichthe show is performed.
Provide phonogram producers with the right for50 years from the date of first authorizedfixation to prohibit unauthorized reproduction
of their phonograms, directly or indirectly, and
to prohibit rental of copies of their phonogramsonce sold or otherwise distributed.  Article 14.2,.4, and .5.Without the authorization of the phonogram producers, no
one can reproduce directly or indirectly the phonogram;import any copy of the phonogram; lease or loan a copy of
the phonogram.
The duration of the protection provided for in the firstparagraph is 50 years, starting from the end of the year inwhich the phonogram was produced for the first time.
Providing broadcasting organizations with theexclusive rights for 20 years of fixation,reproduction of fixations, and rebroadcasting by
wireless means of their broadcasts and the
communication to the public of broadcasts oftheir broadcasts or provide to the owners of thecopyright in the material broadcast thepossibility of exercising such rights.  Article14.3 and 5.No one can do the following activities without the
authorization of broadcasting organizations: (1)rebroadcasting of their programs; (2) registering of their
programs; (3) reproducing of a registration of their programs
when the registration on which basis the reproduction isdone, is realized without the authorization of thisorganization, or the broadcasting is firstly registered inaccordance with the provisions of Article 39 of this law, butthe reproduction is done for purposes other than those
mentioned in that article.  As per this Article, protection
ends in 50 years, starting from the end of the year, in whichthe broadcasting is done.
Trademarks Citation to appropriate law
Provide trademark or service mark protectionfor any sign, or combination of signs capable ofdistinguishing the goods or services of oneundertaking from those of other undertakings.
Article 15.1Any sign or any combination of the signs capable of
distinguishing the goods or services of one natural or legalperson from those of another natural or legal person and ofbeing represented graphically may serve as a mark for goods
or a mark for services.WT/ACC/ALB/25
Page 28
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Not deny registration for a mark based solely on
the nature of the goods or services to which atrademark is to be applied.  Article 15.4.No mentioned of deny is cited in the Law.
Trademarks must be published before or shortly
after registration to permit opposition oropportunity to apply for cancellation.  Article
15.5If the application conforms to the requirement of the Law ,
The Patent Office shall send a written notice to the applicanton the acceptance of the application for examination and
shall publish the mark.
Provide trademark owners the exclusive right to
prevent unauthorized use identical or similarmarks for similar goods or services of otherparties if confusion is likely to result.  Article16.1The owner of a registered mark shall have the right to
prevent a third party from using, without his authorization,in the course of trade, as a mark or as a trade name, anidentical or similar sign for goods or services which areidentical or similar to those in respect of which the mark isregistered, where such use would result in a likelihood of
confusion.
Presume confusion where an identical mark isused without authorization on identical goods or
services.  Article 16.1.Where the use relates to an identical sign for identical goods
or services, the likelihood of confusion shall be assumed.
Provide protection for well know trademarks
and service marks in accordance with Article6
bis of the Paris Convention, even where use is
on goods or services which are not similar tothose in respect of which a trademark is
registered if the latter use would imply a
connection with the right holder or would belikely to damage the right holder’s interests.Article 16.2 and .3.A sign shall not be protected as a mark, if its use as a mark
would be in conflict with earlier rights, as  a well - knownmark within the meaning of Article 6 bis of the Paris
Convention for the Protection of Industrial Property, of athird party.
Allow only limited exceptions to the rightsconferred by a trademark such as fair use ofdescriptive terms.  Article 17.No mentioned of limited exceptions is cited in the Law.
Provide a period of protection for registration of
at least seven years, renewable indefinitely.
Article 18.The registration of a trademark and service mark is made for
10 years counted from the filing date.
No mentioned of indefinitely renewal is  cited in the Law.
Allow cancellation for non-use only after aperiod of three years of uninterrupted non-useunless valid reasons exist for the non-use,including government interference with use.
Article 19.1.The registration of a mark may be revoked if the owner of
the registered mark has not used it in connection with thegoods or services referred to in the registration during aperiod of five years, without good reason.
No encumbering of the use of a trademark by
special requirements.  Article 20.No mentioned of encumbers for the use is cited in the Law.
May establish conditions for licensing but
compulsory licensing not permitted and ownerof registered mark must be able to assign it withor without transfer of business.  Article 21.For the purpose of this Law , " license contract " means any
contract by which the owner of the registered mark ( " thelicensor " ) gives to the other party ("the licensee") hisagreement for that other party to perform any of the actsreferred to this Law, in respect of the registered mark.No direct mention of conditions asked are cited in the Law.
Geographical Indications Citation to appropriate law or laws
Provide means to prevent deceptive use of
geographical indications identifying location
where a given quality, reputation or othercharacteristic of a good is attributable to itslocation.  Article 22.1 and 2.The appellation of origin is used to mark the natural,
agricultural products, the industrial and handicrafts
products.The appellations of origin protect: geographical names ofproducts, whose distinctive properties are mainly due to theWT/ACC/ALB/25
Page 29
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
location or region where they are produced , if such
properties are a natural consequence of either the climate orsoil or of established manufacturing procedures orprocesses.
Refuse to register or invalidate registrations oftrademarks containing geographical indications
except in instances in which such marks have
been used continuously for at least 10 years orin good faith before April 15 1994.  Article 22.3No direct mention of invalidation for these cases.
Protect against use of geographical indications
even when literally true but which falselyrepresent that the goods originate in anotherterritory.  Article 22.4No measurements are directly cited in the Law.
Protect, with certain exceptions, appellations or
origin for wines and spirits even against use
accompanied by expressions suchNo, special provision and no prohibition for Protection of
Geographic Indications for Wines and Spirits are mentioned
in the Law. New article to be amended complied with
TRIP`s
Protect, with certain exceptions, appellations ororigin for wines and spirits even against useaccompanied by expressions such as "kind,""type," "style," etc.  Article 23.1 and 24.No, special provision and no prohibition for Protection of
Geographic Indications for Wines and Spirits are mentionedin the Law. New article to be amended complied with
TRIP`s
Refuse or invalidate, with certain exceptionstrademark registrations containing geographical
indications for wines and spirits if they do not
originate in the place named.  Article 23.2 and24.A mark shall not be registered as a trademark if it consists
exclusively of signs or indications, which may serve  in
trade , to designate the kind, quality, quantity, intended
purpose, value , geographical origin, or the time ofproduction of the goods or of rendering the services, orother characteristics of the goods or  services.
Industrial Designs Citation to appropriate law
Provide, with certain exceptions, protection fornew or original, independently createdindustrial designs.
Article 25.1.In order to be protectable, an industrial design must be new
and usable in industrial or handicraft products.
Ensure that requirements for securing protectionfor textile designs are not prohibitive of suchprotection.  Article 25.2.No, special provision and no prohibition for Protection of
Textile designs are mentioned in the Law. New article to be
amended (proposal to be put on Copyright Law)
Protection should last at least 10 years. Industrial Design is protected for five years, possibility of
renewal also for other ten years.
Patents Citation to appropriate law
Provide patents for any inventions, whetherproducts or processes, in all fields of technologyif they are new, involve an inventive step and
are industrially applicable.  Exceptions are
permitted for plants and animals, except formicroorganisms and non-biological andmicrobiological processes.  Exemptions are alsopermitted for reasons of ordre public  and
morality.  Article 27.The same is described in Article  3 of the Law
1. In order to be patentable, an invention shall be novel,shall involve an inventive step and shall be industrially
applicable.
2. The following, in particular, shall not be regarded asinventions within the meaning of paragraph 1. :(a) discoveries, scientific theories and mathematical
methods ;
(b) aesthetic creations ;
(c) schemes, rules and methods for performing mental
acts, playing games or doing business, and programsfor computers
(d) presentations of information;WT/ACC/ALB/25
Page 30
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
3. The provisions of  paragraph 2. shall  exclude
patentability of  the subject-matter or activities referred to inthat provision only to the extent to which a patentapplication or patent relates to such subject-matter or
activities as such.
4. A patent shall not be granted in respect of an inventionthe publication or exploitation of which would be contraryto public order or morality.5. No patents shall be granted for substances obtainedthrough internal nuclear transformations for military
purposes.
6. No patents shall be granted for inventions of surgical,diagnostic or therapeutical methods practiced on the humanor animal body, as they shall be regarded as inventionswhich are not susceptible of industrial application within themeaning of paragraph (1).This provision shall not apply to
inventions relating to substances and devices for use in any
of these methods.7. No patents shall be granted in respect of plant oranimal varieties or essentially biological processes for theproduction of plants or animals ; this provision does notapply to microbiological processes or the products thereof.
Provide patent owners with the right to prevent
others from making, using, offering for sale,
selling, or importing a patented product or fromusing a patent process or using, offering forsale, selling or importing a product produceddirectly using such process.  Article 28.1.The right to a patent shall belong to the inventor or his
successor in title. Joint inventors shall, unless they agree
otherwise, have equal rights.  Where two or moreapplications have been filed by different persons in respectof the same invention and the inventors concerned made theinvention independently of each other, the right to a patentfor that invention shall belong to the applicant whose
application has the earliest filing date, or, where priority is
claimed, the earliest priority date, as long as his applicationis not withdrawn or abandoned, considered to be withdrawnor abandoned, or rejected.
Give patent owners the right to assign the rightsin the patent, or transfer the rights bysuccession, or license them.  Article 28.2The same as described in Article 32, 33, 34:
1.  Any contract assigning a patent application or a patent
shall be made in writing and shall be signed by the parties to
the contract.  Otherwise it shall not be valid.
2. Any change in the ownership of a patent application or
a patent shall be recorded in the patent register on paymentof the prescribed fee.  The new owner of the application or
patent shall be entitled to institute any legal proceedings
concerning the patent only if the change in the ownershiphas been recorded in the patent register.  The Patent Officeshall publish the change of the ownership of the patent.
If a patent application has been filed or a patent granted to a
person who is not entitled to the patent under Article 8 or 9,the person entitled to it under this provisions may requestthe Court to order the assignment to him of the patentapplication or patentWT/ACC/ALB/25
Page 31
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
1. Where there are joint applicants of a patent
application, each of them may without the agreement of theothers separately assign or transfer by succession his shareof the application, but the joint applicants may only jointly
withdraw the application or conclude licence contracts with
third parties under the application.
2. Where there are joint owners of a patent, each of them
may without the agreement of the others separately assign ortransfer by succession his share of the patent or institute
court proceedings for an infringement of the patent against
any person exploiting the patented invention in the Republicof Albania. The exploitation of the patented invention in theRepublic of Albania by one of the joint owners shall notrequire the agreement of the other joint owners, but the jointowners may only jointly surrender the patent or conclude
licence contracts with third parties under the patent.
3. The provisions of this Article shall be applicable only
in the absence of an agreement to the contrary between thejoint applicants or owners.
Require applicants to disclose the invention sothat one skilled in the art can carry it out and
may require indication of the best mode and
information on corresponding foreignapplications.  Article 29.The reference as described in Article 3, 4, 5, 7, of the Law.
Ensure that any exceptions to exclusive patent
rights do not unreasonably conflict with normalexploitation of the patent and do notunreasonably prejudice the legitimate interests
of the patent owner, taking third party interests
into account.  Article 30.A patent shall have no effect against any person who in
good faith, for the purposes of his enterprise or business,before the filing date, or, where priority is claimed, thepriority date of the application on which the patent is
granted, and within Albania was using the invention or was
making effective and serious preparations for such use.  Anysuch person shall have the right, for the purposes of hisenterprise or business, to continue such use or to use theinvention as envisaged in such preparations.The right of the prior user may only be transferred or
devolve together with his enterprise or business, or with that
part of his enterprise or business in which the use orpreparations for use have been made.
The rights under the patent shall not extend to the use of the
patented invention on any foreign vessel, aircraft or land
vehicle which temporarily or accidentally enters the waters,
airspace or land of Albania provided that the patentedinvention is used exclusively for the needs of the vessel orin the construction or operation of the aircraft, spacecraft orland vehicle.
Compulsory licenses can be issued only whenenumerated conditions are met, including such
things as notice, remuneration, limitations on
use and transfer of the license, etc.  Article 31.The same as described in Article 32, 33, 34:
1. Any contract assigning a patent application or a patent
shall be made in writing and shall be signed by the parties tothe contract.  Otherwise it shall not be valid.WT/ACC/ALB/25
Page 32
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
2. Any change in the ownership of a patent application or
a patent shall be recorded in the patent register on paymentof the prescribed fee.  The new owner of the application orpatent shall be entitled to institute any legal proceedings
concerning the patent only if the change in the ownership
has been recorded in the patent register.  The Patent Officeshall publish the change of the ownership of the patent.
If a patent application has been filed or a patent granted to a
person who is not entitled to the patent under Article 8 or 9,
the person entitled to it under this provisions may request
the Court to order the assignment to him of the patentapplication or patent.
1. Where there are joint applicants of a patent
application, each of them may without the agreement of the
others separately assign or transfer by succession his share
of the application, but the joint applicants may only jointlywithdraw the application or conclude licence contracts withthird parties under the application.
2. Where there are joint owners of a patent, each of them
may without the agreement of the others separately assign or
transfer by succession his share of the patent or institutecourt proceedings for an infringement of the patent againstany person exploiting the patented invention in the Republicof Albania. The exploitation of the patented invention in the
Republic of Albania by one of the joint owners shall not
require the agreement of the other joint owners, but the jointowners may only jointly surrender the patent or concludelicence contracts with third parties under the patent.
3. The provisions of this Article shall be applicable only
in the absence of an agreement to the contrary between the
joint applicants or owners.
Provide an opportunity for judicial review ofdecisions to revoke or forfeit a patent.Article 32.1. The Regional Court of Tirana shall have exclusive
jurisdiction for any dispute concerning a patent applicationor patent, in particular for :(a) any  action  for  infringement or a declaration of non –
 infringement of a patent or patent application ;
(b) any action or counterclaim for invalidation of a patent;
(c) any  action  concerning the  right to  the  patent,  the
ownership or assignment of a patent application orpatent ;
(d) any action concerning a licence contract ;(e) the grant of non - voluntary licences ;
(f) the review decisions of Board of Appeal of the Patent
Office.
2. Decisions of the Regional Court of Tirana on any type
of disputes referred to in this Article, may be appealed to theCourt of Appeal.WT/ACC/ALB/25
Page 33
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
1. Within the period of patent duration, an action may be
instituted in Court without any time limitation, if the disputehas arisen :(a) on invalidation of patents (Article 46) ;
(b) on the grant of licences.
2. In other cases of disputes, which are not referred to in
paragraph 1. of this Article, the term for instituting an actionin Court is limited to three years unless this Law or thelegislative acts in force provide for other terms.
Provide a patent term of at least 20 years from
the filing date.  Article 33.1. The term of a patent shall be 20 years as from the
filing date of the application.
2 The maintenance of a patent shall be subject to the
payment of the prescribed fees.  These fees shall be dueeach year on the date corresponding to the filing date.
3 Any maintenance fee may be paid within a period of
six months beginning on the date when it became due,paying in this case a supplementary fee for the delay.
4. If a maintenance fee is not paid according to
paragraphs 2. and 3., the patent shall lapse on the date when
the fee became due.
5 The term of a patent for invention related to
pharmaceutical products can be extended over 20 years, butno more than five years.
Shift the burden of proof in process patent
infringement actions to the defendant in
instances in which the product produced by theprocess is new or where it is substantially likelythat the identical product was made using theprocess and the patent owner has been unablethrough reasonable efforts to determine the
process used.  Article 34.Not mentioned in Law.
Integrated-Circuit Layout Designs Citation to appropriate law
Provide protection for original layout designs of
integrated circuits that are registered or havebeen commercially exploited anywhere in theworld.  Articles 3, 4, 5, and 7 of the WashingtonTreaty as incorporated into TRIPs by Article 35.Nothing is mentioned in Law (the draft of the article is
under preparation.
Make unlawful, except in certain circumstances,the reproduction, importation, sale or other
distribution of a protected layout design or an
integrated circuit embodying such design or anarticle containing such a microcircuit.  Article 6of Washington and Article 36 of TRIPs.Nothing is mentioned in Law (the draft of the article is
under preparation.
Provide such protection for a term of 10 yearsfrom the filing of an application for registrationor from first commercial exploitation.  Article
38.Nothing is mentioned in Law (the draft of the article is
under preparation.WT/ACC/ALB/25
Page 34
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Undisclosed Information Citation to appropriate law or laws
Provide protection for undisclosed information
that is secret (not generally known or readilyascertainable); has commercial value because ofits secrecy; and has been subject to reasonable
steps to keep it secret.  Article 39.2.The Law on Competition (Article 49) prohibits the
acquisition of enterprise or business secrets in any illegalway or by influencing employees in order to use or to sellthem.  It is also forbidden to give to others or to use these
secrets, knowledge which has been required during relations
of employment or other confidential relations, during theduration of these relations to gain advantages in competitionfor oneself or for a third party or to damage the owner of theenterprise.  This obligation is valid for a period of two yearsafter the termination of employment or the confidential
relation if the owner of this business activity has a justified
interest and if this does not lead to any unreasonablerestriction of the business or the professional activity of theother.
Protect data submitted to obtain marketingapproval for pharmaceutical or agriculturalchemicals utilising a new chemical entity.
Article 39.3.
Enforcement
General ProvisionsCitation to appropriate law or laws
Provide for effective action against
infringement of intellectual property rightswithout creating barriers to legitimate trade oropportunities for abuse.  Article 41.1Article 89 of the Law on Industrial Property provides a right
of action for owners of registered trademarks.  It is not clearhow rights in appellations of origin are enforced.  Article 70of the Law on Industrial Property provides a right of actionfor the owners of industrial designs.  Article 41 of the Law
identifies what constitutes patent infringement and Article
42 gives the patentee the right to institute proceedingsagainst any infringer.  Article 43 provides a declaratoryjudgement action regarding patent infringement.  It is notclear how rights in undisclosed information are enforced.Article 101 authorizes Courts to impose a fine on any
natural or legal person who knowingly infringes and
intellectual property right; the amount of the fine is to bedoubled in the event of a repetition of the knowinginfringement within 5 years of the original offence.  Theprovision appears to be criminal, but it is not clear who
bears responsibility for bringing actions under the provision
or whether is a consideration when an infringement suit isbrought.
Provide enforcement procedures that are fairand equitable and are not unnecessarilycomplicated or costly and do not entailunreasonable time-limits or unwarranted delays.Article 41.2The regional Court in Tirana is given jurisdiction over the
specified disputes involving patents by Article 57 of theLaw on Industrial Property.  Information on the proceduresfollowed by that Court or other courts in Albania is notavailable for review.
Provide decisions on the merits based upon the
evidence presented in the case to the parties,
preferably in writing with the reasons explained.Article 41.3.
Provide for appeals to judicial bodies of finaladministrative decisions and of at least the legalaspects of initial judicial decisions on the meritsof a case.  Article 41.4.Article 57 of the Law on Industrial Property provides for
appeal to the Court of Appeal of Decisions of the RegionalCourt in Tirana on patent disputes.WT/ACC/ALB/25
Page 35
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Civil and Administrative Procedures and Remedies
Provide a procedure that allows plaintiffs to
bring an action for infringement; requires thatdefendants be notified; permits both side topresent evidence in support of their position;
and protects confidential information.  Article
42Article 89 of the Law on Industrial Property provides a right
of action for owners of registered trademarks.  It is not clearhow rights in appellations of origin are enforced.  Article 70
of the Law on Industrial Property provides a right of action
for owners of industrial designs.  Article 41 of the Lawidentifies what constitutes patent infringement and Article42 gives the patentee the right to institute proceedingsagainst any infringer.  Article 43 provides a declaratoryjudgement action regarding patent infringement.  It is not
clear how rights in undisclosed information are enforced.
Authorize judges to order production of
evidence necessary to substantiate a party’sclaims where that party has been unable toobtain such evidence from the opposing party.Article 43.1.
Authorize judges to enjoin a defendant, exceptthe government, from infringing intellectual
property rights.  Article 44.1.Article 89 of the Law on Industrial Property authorizes the
court to enjoin trademark infringement.  Article 70 of the
Law authorizes the court to enjoin infringement of industrial
designs.  Article 42 of the Law authorizes the court to enjoinpatent infringement.
Authorize judges to order the payment ofmonetary damages adequate to compensate forthe injury done by the infringement.  Article45.1Article 89 of the Law on Industrial Property authorizes the
court to award compensation for trademark infringement.
Article 70 of the Law authorizes the court to awardcompensation for infringement of industrial designs.  Article
42 of the Law authorizes the court to award damages for
patent infringement.
Authorize judges to order infringer to pay rightholders enforcement costs and recovery ofprofits and/or statutory damages.  Article 45.2.Article 89(2)(a) of the Law on Industrial Property appears to
limit the court's authority to award enforcement costs intrademark infringement suits.  Article 70 of the Law appearsto limit the court's authority to award enforcement costs insuits for infringement of an industrial design.  Article 42 ofthe Law does not define "damages" in patent infringement
cases but the Article, like the two above, refers to "any other
remedy provided in the general law".  It is not clear if thelatter would include award of court costs.
Authorize additional remedies including seizureof infringing goods, and the materials andimplements the predominant use of which isinfringement.  Article 46.Articles 42, 70, and 89 all authorize courts to grant "any
other remedy provided in the general law".  It is not clearwhether this would include seizure of infringing goods, andthe material and implements the predominant use of which
is infringement.
Authorize indemnification of defendant,
including attorneys’ fees in the event of abuseby plaintiffs.  Article 48.1.
Exempt public authorities and officials fromliability in connection with the administration ofintellectual property laws only where theactions are taken or intended in good faith
within the scope of the relevant authority.
Article 48.2.
Ensure that administrative remedies conform tothe principles in the preceding Articles.  Article49.WT/ACC/ALB/25
Page 36
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Provisional Measures
Authorize judges to grant temporary restraining
orders and provisional relief to preventinfringement and to preserve evidence.  Article50.1.Article 42 of the Law on Industrial Property states that have
a cause of action against any person who is performing actsthat make it likely that infringement will occur ("imminentinfringement").  Courts are authorized to grant an injunction
to prevent infringement and any other remedy provided in
the general law.  Article 70 provides similarly for industrialdesigns.  Article 89 provides similarly for trademarks.  It isnot clear what temporary actions are available in connectionwith geographical indications and undisclosed information.
Authorize judges to require he complaining
party to indemnify the defending party against
harm if the decision on the merits finds theprovisional relief unjustified.  Article 50.3.
Provide for notice, for formal action by theplaintiff after temporary restraining orders, etc.Article 50.4+.
Border MeasuresWT/ACC/ALB/23 states that Albania currently has no
system for border enforcement but that preparation of such a
system is under consideration.
Provide for suspension of release by customs
authorities of goods suspected of bearing acounterfeit trademark or of being a piraticalcopyrighted work, either at the request of a rightholder.  Members are authorized to extend suchprotection to holders of other forms of
intellectual property.  Article 51
Require right holders initiating border measures
to provide evidence of a prima facieinfringement and a description of the goodssufficient for customs authorities to recognizethem.  The right holder must be notified withina reasonable time is action will be taken on his
behalf.  Article 52
Authorize authorities to require the right holder
requesting border measures to post a bondsufficient to protect the defendant and toprevent abuse.  Article 53
Requires prompt notification of the right holderand the importer when action under Article 51is taken.  Article 54
Requires that customs authorities be notifiedwithin a maximum of 20 days of the receipt of
notice that proceedings on the merits have
begun or the suspension is to be revoked.Article 55
Authorities must be authorized to require theright holder to compensate the importer orowner of the goods subject to border measuresif goods were wrongfully detained or if
proceedings leading to a decision on the merits
are not begun within the allotted time.  Article56.WT/ACC/ALB/25
Page 37
TRIP S AGREEMENT ALBANIA 'S COMPLIANCE
Right holders must be allowed to inspect the
detained goods in order to substantiate the rightholder’s claims.  Importers must be givensimilar authority.  Members may give the right
holder the names and addresses of those
involved in the importation when infringementis found to exist.  Article 57.
Establishes the conditions that must be in placeif customs authorities are authorized to act exofficio, including the ability to ask the rightholder for information at any time; therequirement to notify the importer promptly of
the suspension; and the requirement that public
officials be liable if they act in bad faith.Article 58
Competent authorities must be able to orderdestruction or disposal other than by re-exportof infringing goods where appropriate.  Article59
Members are authorized to except from border
measures small quantities of infringing goods of
a non-commercial nature carried in personalluggage or shipped in small consignments.Article 60
Criminal Procedures
Provide criminal procedures and penalties,sufficient to act as a deterrent, for wilfultrademark counterfeiting or copyright piracy on
a commercial scale.  Authorizes extension of
criminal actions to other forms of intellectualproperty where infringements are wilful and ona commercial scale.   Article 61.Article 101 of the Law on Industrial Property appears to
provide for fines for intentional infringement of patents,trademarks and rights in industrial designs.  It is not clear if
these fines are criminal or if they merely can be awarded by
a judge in a civil case.
The amendments to the Copyright Law are provided as supplementary materials.
(WT/ACC/ALB/24)
VIII.  NOTE ON PREVIOUS QUESTIONS AND UPDATE INFORMATION
A. NOTE ON GOVERNMENT PROCUREMENT
A list of the documents prepared with the assistance of foreign consultancies and with the
approval of the World Bank, but which are not yet passed for approval by the Council of Ministers isprovided below:
− 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 Procur ement of Goods (Big and Complex);WT/ACC/ALB/25
Page 38
− Document for the Tender for the Procurement of Systems (Big and Complex);
− Document for the Tender for the Procurem ent 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).
These documents can be sent upon notice and have not been included with the supplementary
materials.
B. DISCRIMINATORY EXCISE TAX
A draft of legislation on excise taxes is presently in the legislative channel for approval.  The
proposal is to eliminate the discriminatory excise tax between local products and foreign products.  A
decision has not been made as to whether the new ex cise tax will conform to the higher rate applied to
foreign products or the lower rate applied to local products.  Several issues still require discussion, for
example: how will tariffs on inputs be changed (i.e., lowered) to compensate for the higher excise taxon foreign products, how will a lower excise tax affect government revenues (i.e., is it possible to
maintain budget neutrality), and how will the changes in the excise tax and import tariffs affect the
IMF's conditions.  The draft legislation is expected to be approved in October 1998 and is intended for
implementation on January 1, 1999.
C. U
PDATE ON CONFORMITY WITH TRIM S
Albania does not maintain or apply trade-related investment measures (TRIMs).  The Law on
Foreign Investment provides for national treatment; investment without prior governmentauthorization or case-by-case approval; guaranteed repatriation of profits and capital; security against
nationalization, expropriation or other actions with equal effects; and international dispute settlement.
The only exception to national treatment involves ownership of land.  Foreigners may lease land for
99 years.  No sector of the economy is closed to foreign investment except for sectors subject to a
national monopoly (e.g., radio and television broadcasting).  National monopolies subject toprivatization will be allowed to have varying degrees of foreign investment.
D. N
OTE ON ANTI -DUMPING
Anti-dumping legislation was being drafted for Albania in July of 1998 with foreign
assistance using the draft on anti-dumping produced by the WTO.  A copy of the draft will be
submitted later in the year.
E. NOTE ON SAFEGUARDS
The Republic of Albania has not yet initiated the study into safeguards; however, when the
WTO's draft on safeguards is produced Albania will begin this effort.  More details will be provided
in the future.  Albania is not excluding the possibility of implementing safeguards legislation at this
point which is in conformity with the WTO.WT/ACC/ALB/25
Page 39
F. NOTE ON COUNTERVAILING DUTIES
The Republic of Albania has not yet initiated the study into countervailing duties.  More
details will be provided in the future as to how Albania will approach CVD.  Albania is not excluding
the possibility of implementing CVD legislation which is in conformity with the WTO.
__________