WORLD TRADE G/STR/N/1/TUN/Add.1
26June1997
ORGANIZATION(97-2639)
Original: French Working Party onState Trading Enterprises
STATE TRADING
Notification Pursuant toArticle XVII:4(a) oftheGATT andParagraph 1
oftheUnderstanding ontheInterpretation ofArticle XVII
TUNISIA
Addendum
Thefollowingcommunication,dated4June1997,hasbeenreceivedfromthePermanentMission
ofTunisia.
________________
ADDITIONAL INFORMATION ONREASONS FOR MAINTAINING,
FUNCTIONING AND PRICING METHODS
1. TUNISIAN CENTRAL PHARMACY (PCT)
Description ofthefunctioning ofthePCT
A. ThePCTdealschieflywithimportsofthemedicamentsandpharmaceuticalslistedinChapter30.
Itengages inimporting specifically forre-export (ex-wharf delivery) onbehalf ofinternational
trading companies.
B. TheStatemonopoly fortheimport ofmedicaments wasassigned tothePCTbyLawNo.90-105
of26November 1990.
ThePCT alsodistributes medicaments andpharmaceuticals towholesale distributors and
dispensing chemists anddelivers themedicaments totheirsalesoutlets atthesame price.
Itistheexclusive supplier ofthehospital sector.
TheTunisian Central Pharmacy isaStateenterprise constituted asanon-administrative public
establishment whose organization andfunctioning were laiddown byLaw No.90-105 of
26November 1990 andDecree No.91-555 of20April 1991.
Itwascreated andismaintained toensure aregular supply oftheTunisian market, toavoid
stockouts ofmedicaments andtoformastrategic stockpile tocover three months 'normal usage, and
tooffer Tunisian consumers thesame prices throughout thecountry.G/STR/N/1/TUN/Add.1
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Thelawunder which itwascreated andismaintained provides forState control primarily
exercised through theMinistry ofHealth.
C. There arenoprivate imports ofmedicaments andpharmaceuticals covered bythePCT's
monopoly.
D. Procurement methods: thePCTpurchases by:
- International callsfortenders;
- negotiated purchase forspecial pharmaceutical dispensary products;
- two-year orthree-year agreements (framework contracts).
Thevolume ofimports isdetermined bynormal domestic consumption tosatisfy demand, to
formthree-months 'strategic stocks andtoreplenish stocks inthecaseofexcess consumption, delays
indelivery, etc.
E. Export prices arefixed byagreement between theparties concerned.
F. Theprice ofmedicaments isfixed bytheState. Price increases aresetbydecision ofthe
ministries concerned.
Themargins foreachitemforsalearealsofixed bydecision oftheministries concerned.
Inthisway, domestic retail prices arehomogeneous andidentical throughout thecountry.
Forthehospital sector, medicaments aresupplied atcostplusthePCT'smargin (direct supply
tohospitals without anyintermediary).
G. ThePCThastonegotiate longtermcontracts forthesame price overafixed period orfor
thesame price, plusapercentage increase negotiated andagreed under negotiated purchase orcalls
fortenders when theprice isadvantageous andcanbeheldformore thanayear. Thisprocedure is
intended tostabilize prices andprocurement, especially ofmedicaments forthechronically sick.
H. TheTunisian medicaments andpharmaceuticals market isonewhich isregulated totakeaccount
oftherelated social aspects andthemodest leveloflocalproduction.
2. TUNISIAN TRADE BOARD (OCT)
Description ofthefunctioning oftheOCT
A. TheOCTisresponsible tothepublic authorities fortheimport ofbasic foodproducts, notably
sugar, tea,coffee andoccasionally other products inthecaseofshortages oflocalproduction.
Locally, itengages inwholesale distribution. Retailing oftheseproducts isbyprivate traders.
B. Since itsformation in1962 byDecree-Law No.62-6of3April 1962, theOCT hasbeen
responsible forensuring aregular supply inthecountry ofprimary consumer goods.
However, itsrolehasevolved inthecourse oftime. Under thedecree of30April 1989which
established thelistsofimport products withfluctuating prices assigned toOCT, itgaveuptotheprivate
sector several products inwhich ithadpreviously traded, suchasblack pepper, cocoa, rice,green
beans, etc.G/STR/N/1/TUN/Add.1
Page3
Thisdisengagement policy accelerated withtheliberalization ofthenational economy andas
private traders takeoverandmaster import operations.
TheOCT isaStateenterprise constituted asanon-administrative public establishment whose
organization andfunctioning were laiddown byDecree-Law No.62-6 of3April 1962.
Itwascreated andismaintained toensure aregular supply ofprimary consumer goods, avoid
stockouts andstabilize prices ofcommodities whose international prices aresubject tolargefluctuations.
Thedecree-lawunderwhichitwascreatedandismaintainedprovidesforStatecontrolprimarily
exercised through theMinistry ofTrade.
C. Private traders arefreetoimport sugar, coffee andtea,aswellastheother occasional products
under current legislation. However, duetothefinancial scaleofsuchimports, theconditions foraccess
tointernational markets, fluctuating exchange ratesandlittle-developed localtraditions inthisarea,
private traders donotseem particularly attracted totheactivity.
D. OCT'simports arethrough callsfortenders. Thetendering andprocurement procedures are
subject tothecompetition rules setbythepublic procurement regulations inforce.
Thequantities imported aredetermined onthebasis ofannual estimates ofannual domestic
consumption andmaintaining astrategic stockpile.
E. None.
F. Theselling price ofthese products isdetermined bytheState pursuant toLawNo.91-64 of
29July1991 oncompetition andpricing.
G. TheOCT hasnotconcluded anylong-term contracts fortheimport ofthese products.
3. TUNISIAN PETROLEUM ENTERPRISE (ETAP)
Description ofthefunctioning ofETAP
A. ETAP imports petroleum products fortheneeds ofthelocal market. Itimports petroleum
products (LPG, diesel, jet,fueloil,bitumen, basic oils,paraffin, petrols, ...),crude oil,natural gas,
etc.Itcentralizes allimports ofpetroleum products tosatisfy local demand notcovered bylocal
production.
Italsoexports theState'sshare ofcrude oil,aftermeeting theSTIR'srefinery needs, surplus
propane andtheproduction ofcondensate fortheTunisian Electricity andGasCorporation (STEG)
andtrading ofthecrude petroleum share ofsome private operators.
B. ETAP hasamonopoly overtheimport ofpetroleum products, crude oilandnatural gasto
supply thedomestic market andanexport monopoly overtheState'sshare ofcrude oil.
ItisaStateenterpriseconstitutedasanon-administrativepublicestablishmentwhoseorganization
andfunctioning were laiddown byLawNo.72-22 of10March 1972.
Itwascreated andismaintained torebuild national oilreserves, ensure aregular supply of
energy tothecountry under thebestpossible price andsecurity conditions andtocarry outresearch,
provide training andintervene where necessary inanyoil-related operations.G/STR/N/1/TUN/Add.1
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Thelawunder which itwascreated andismaintained provides forState control primarily
exercised through theMinistry ofIndustry.
C. TheTunisian Refining Industries Corporation (STIR) exchanges certain products (fueloilwith
lowsulphur content forfueloilwithhighsulphur content, naphtha forpetrols, etc.).
PrivateoperatorsalsoexporttheirnetsharesofcrudeoilandtheTunisianLubricantsCorporation
(SOTULUB) exports grease.
D. Import levels depend onthedifference between theneeds ofthelocalmarket forpetroleum
products andlocalsupply (output oftheSTIR, SOTULUB andtheSTEG).
ETAP iscurrently centralizing allimporting ofpetroleum products soastosatisfy theneeds
ofthelocal market notcovered bylocal production. Itgroups theneeds ofdistribution companies
andconcludes contracts relying oninternational competition bycallsfortenders inaccordance with
thepublic procurement regulations inforce.
Itsimilarly exports crude oilsurplus totheneeds oftheSTIR fortheState/ETAP. This
procedure permits continuity andsecurity ofsupply, management ofthecountry 'sresources, optimal
utilization ofexisting infrastructure, especially portsandstorage, andstabilization ofprices (forproducts
withhighly volatile prices).
E.-F. Import andexport prices depend oninternational market prices.
Prices ofsupply tolocaloperators arefixed bytheState, except foraviation fuel,bitumens
andbasic oilswhich aresupplied atcostplusETAP 'strading margin.
G. Import contracts aregenerally annual, supplemented byspotpurchases, except fornatural gas.
Export contracts aregenerally spot.
Natural gasispurchased under medium tolong-term contracts (three to23years).
H. TheTunisian petroleum market isregulated. Imports, exports, refining, storage, distribution
andpricing aresubject toLawNo.91-45 onpetroleum of1July1991.
4. TUNISIAN REFINING INDUSTRIES CORPORATION (STIR)
Description ofthefunctioning oftheSTIR
A. TheSTIR engages inthefollowing activities:
- Refining ofcrude oilandallindustrial operations toproduce liquid combustible fuels,
liquid gasandlubricants, primarily tosatisfy theneeds oftheTunisian domestic market;
- thesaleex-refinery offinished products andby-products todistribution companies
authorized toprocure from theSTIR, thelistofwhich isfixed bydecree.
Itexchanges petroleum products (virgin naphtha forpetrol ordiesel; fueloilwithlowsulphur
content forfueloilwithhighsulphur content) when theinternational market situation allows.
TheSTIR, withETAP, isthesolesupplier ofpetroleum products onthedomestic market.G/STR/N/1/TUN/Add.1
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Itisastateenterpriseconstitutedasanon-administrativepublicestablishmentwhoseorganization
andfunctioning were laiddown byDecree No.77-467 of11May1977.
Itwascreated andismaintained toensure asecurity ofsupply ofpetroleum products tothe
country.
Thedecree under which itwascreated andismaintained provides forStatecontrol primarily
exercised through theMinistry ofIndustry.
C. There arecurrently noprivate traders dealing inpetroleum products.
D. Thecorporation hastosatisfy local demand forpetroleum products uptothelimit ofits
production. Anyadditional supplies tocover thecountry 'sneeds areimported byETAP.
Itexchanges surplus virgin naphtha forother products (petrol ordiesel) andexchanges fuel
oilwithlowsulphur content forfueloilwithhighsulphur content when international market prices
allow.
E. Export prices aresetonthebasisofcallsfortenders inaccordance withthepublic procurement
regulations inforce.
F. Prices forthesupply ofcrude oiltotheSTIR andselling prices ofpetroleum products are
fixed bytheState pursuant toLawNo.91-45 onpetroleum of1July1991.
G. TheSTIR doesnotnegotiate long-term contracts.
H. TheTunisian petroleum market isregulated. Imports, exports, refining, storage, distribution
andpricing aresubject toLawNo.91-45 onpetroleum of1July1991.
5. GRAIN BOARD
Description ofthefunctioning oftheGrain Board
A. TheGrain Board hasamonopoly overtheimport ofdurum wheat, common wheat andbarley.
Italsoexecutes Statepolicy forthedevelopment ofcereal production. Inthisconnection, it
purchases durum wheat andcommon wheat onthelocalmarket atprices fixed bytheGovernment.
Itactsasaregulating bodyforbarley. Itssales, bothlocalandimported products, areatreduced prices
fixed bytheGovernment toensure lowprices totheconsumer.
B. Themonopoly toimport cereals wasassigned totheGrain Board bytheDecree-Law of
3April 1962.
Ithasthesolerighttopurchase durum wheat andcommon wheat onthelocalmarket atthe
intervention price fixed bytheGovernment.
TheGrain Board isaStateenterprise constituted asanon-administrative public establishment
whose organization andfunctioning were laiddown byDecree-Law of3April 1962.
Itwascreated andismaintained toensure aregular supply tothecountry atthebestprice,
toensure asecurity stockpile andexecute theState policy toguarantee aminimum income tocereal
growers.G/STR/N/1/TUN/Add.1
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Thedecree under which itwascreated andismaintained provides forStatecontrol exercised
through theMinistry ofAgriculture.
C. Private traders mayimport cereals onbehalf oftheGrain Board.
D. Thevolume ofimports isnotfixed. TheGrain Board resorts toimports toachieve itsobjective
ofensuring regular supply atthebestprice.
E. Notapplicable.
F. Import prices aretheresult ofcommercial negotiation between traders. Theresale prices of
imported products arethesame asforlocal products. Theprices arefixed taking intoaccount the
reduced prices offinished products totheconsumer under aState consumer subsidy.
G. Contracts negotiated areshort-term commercial contracts.
H. TheTunisian cereals market isaregulated market, especially withregard toconsumer prices
which aresubsidized bytheState, inviewofthesocial aspects ofcereal production andconsumption.
6. NATIONAL EDIBLE OILS BOARD (ONH)
Description ofthefunctioning oftheONH
A. TheONH isresponsible totheState forimporting seedoilforconsumption atlowprices
subsidized bytheState.
Itexports locally-manufactured oil.
Itactsasanintervention agency toguarantee aminimum income intheform ofanadvance
toolive-oil producers.
Itsellsforexport andinthedomestic market thequantities ofolive oilcollected through
intervention.
B. Since thepassing oftheLawof24February 1994, theONH nolonger hasthemonopoly of
salesofedible oilswhich ithadbeengranted under theDecree-Law of16October 1970, except for
theexport ofatariff quota of46,000 tonnes ofolive oiltotheEuropean Union market which itwas
granted exclusively under Decree No.94-1166 of23May1994.
TheONH isaStateenterprise constituted asanon-administrative public establishment whose
organization andfunctioning were laiddown byDecree-Law No.70-13 of16October 1970.
Itwascreated andismaintained toexecute theState policy forthesupply tothecountry of
seedoil(products ofprime necessity subject toaconsumer subsidy) andtoguarantee aminimum income
toolive oilproducers, asector ofgreat social andeconomic importance toTunisia.
Thedecree under which itwascreated andismaintained provides forStatecontrol exercised
through theMinistry ofAgriculture.
C. Under Decree-Law No.94-37 of24February 1994, private traders mayengage inthesale
ofedible oils.G/STR/N/1/TUN/Add.1
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Edible oilsmaybefreely traded bothforexport andonthedomestic market, except forthe
export quota totheEuropean Union allocated totheONH.
Theimport ofedible oilsisalsofree.
D. Forseedoils,import volumes arenotfixedapriori. TheONH resorts toimports which allow
ittoachieve itsobjective ofensuring aregular supply.
Purchases areeffected through international callsfortenders. Thetendering andprocurement
procedures comply withthecompetition rules under thepublic procurement regulations inforce.
E. Export prices forolive oilarefixed inrelation totheinternational market.
F. Theprice ofolive oilisfixed bytheState foreacholive oilseason based onthecostof
production andmarket conditions. Anintervention (minimum) price isguaranteed tooilproducers.
Theprice ispaidbytheONH intheform ofanadvance toproducers.
Refined seedoil,asaproduct eligible forconsumer subsidy, issoldtoconsumers atreduced
prices.
These prices arefixed bytheState pursuant toLawNo.91-64 of29Julyonprices and
competition.
G. Thecontracts negotiated areshort-term commercial contracts.
H. Theoilmarket isamarket where bothproduction anddistribution prices areregulated. Imports
andexports arefree.
7. ALCOHOL AGENCY
Description ofthefunctioning oftheAlcohol Agency
A. TheAlcohol Agency imports alcohol, purchases local production andsellsalcohol forall
purposes.
B. Under Article 44oftheFinance Act, LawNo.74-101 of31December 1974, theAlcohol
Agency isresponsible foroperating thealcohol monopoly (non-rectified ethyl alcohol of80percent
byvolume ormore) under theDecree of20November 1927 asamended, forthebenefit oftheState.
Themonopoly covers thepurchase oflocalproduction, import andreturn foralluses(Articles 1
and3oftheDecree).
However, Article 4oftheabove-mentioned decree, asamended byLawNo.59-113 of
28September 1959, provides thatgeneral orspecific derogations totheprohibitions laiddown in
Article 3maybegranted bytheMinistry ofFinance andtheMinistry ofTrade bydecree orindividual
authorization asapplicable.
TheAlcohol Agency enjoys afiscal advantage inpaying aminimum customs dutyof20per
cent.G/STR/N/1/TUN/Add.1
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Itisastateenterpriseconstitutedasanon-administrativepublicestablishmentwhoseorganization
andfunctioning werelaiddown byLawNo.74-101 of31December 1974 andDecree No.88-68 of
18January 1988.
Itwascreated andismaintained toexploit astrategic monopoly product which canhavean
impact onpublic health, security, taxation, etc.
Maintaining thestateenterprise allows theAdministration tocontrol distribution chains, adjust
prices andduties according totheintended useoftheproduct, eradicate fraud andmisuse bystrict
application ofthevarious rectification processes.
ThelegislationunderwhichitwascreatedandismaintainedprovidesforStatecontrolexercised
through theMinistry ofFinance.
C. Private traders mayimport alcohol under thegeneral orspecial derogations provided forin
Article 4oftheDecree of20November 1927, asamended byLawNo.59-113 of28September 1959.
D. Thequantity imported isdetermined inrelation tolocalproduction andtheneeds ofthemarket.
E. Notapplicable.
F. TheAlcohol Agency 'sselling prices forallusesarefixed bytheState.
G. TheAgency doesnotnegotiate long-term contracts.
8. NATIONAL TOBACCO AND MATCHES AGENCY (RNTA)
Description ofthefunctioning oftheRNTA
A. TheRNTAgrowstobacco,importsleaftobacco,cigarettes,cigarsandpipetobacco,manufactures
cigarettes, cigars, snuff andpipetobacco, buysandsellsmatches, playing cards andgunpowder and
exports leaftobacco andsnuff.
Itdistributes itsproducts ontheinternal market.
B. UnderArticle44ofLawNo.64-57of28December1964,theRNTAisresponsibleforoperating
thefiscal monopoly overtobacco, matches, playing cards andanyother products assigned bytheState
forthebenefit oftheState.
Since 1981, theRNTA hasexercised theactivity inconjunction withtheKairouan Tobacco
Factory (MTK).
ItisaStateenterpriseconstitutedasanon-administrativepublicestablishmentwhoseorganization
andfunctioning were laiddown byLawNo.64-57 of28December 1964.
Itwascreated andismaintained tocollect taxes, reduce unemployment (source ofincome for
14,000 tobacco farmers, especially indeprived areasofTunisia) andguarantee gunpowder transactions.
Thelegislation under which itwascreated andismaintained provides forStatecontrol exercised
through theMinistry ofFinance.G/STR/N/1/TUN/Add.1
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C. Since 1981, together withtheMTK, theRNTA hashadaStatemonopoly overtheimport of
cigarettes, cigars andtobacco, andthedistribution ofproducts manufactured locally byprivate traders
(matches, localcigarettes, playing cards).
Ithasthemonopoly ofdistribution ofgunpowder andproduction anddistribution ofsnuff.
D. RNTA imports through callsfortenders. Thetendering andprocurement procedures comply
withthecompetition rules laiddown inthepublic procurement regulations inforce.
Thequantities imported aredetermined bythelevelofdemand inthelocalmarket andprices
ontheinternational market.
E. Export prices arefixed bycontract between theparties concerned.
F. Selling prices ofproducts marketed bytheRNTA arefixed bytheState. Theselling price
tothepublic ismade upoftheRNTA selling price, domestic taxes, aspecific surcharge composed
ofafiscal dutyandthedistribution margin oftobacco outlets. Thespecific surcharge andother taxes
arepaidtotheState.
G. TheRNTA doesnotnegotiate long-term contracts.
9. THE PASTEUR INSTITUTE OFTUNIS (IPT)
Description ofthefunctioning oftheIPT
A. TheIPThasamonopoly oftheimport ofserums, allergens andvaccines forhuman useand
vaccines forveterinary use,ofwhich 80percentofconsumption isreserved forthepublic sector
(Ministry ofHealth, Ministry ofAgriculture, Ministry ofDefence, Ministry ofInternal Affairs)
responsible forcarrying outnational vaccination programmes.
Consumption ofvaccines intheprivate sector remains marginal (30percent)compared with
consumption byState bodies (70percent).
TheIPTisalsoresponsible forcontrolling thesale,useandimport ofvaccines intothecountry
toavoid aheterogeneous range ofvaccines available onthemarket which might upset thebalance of
health inthecountry. Thisparticularly applies tovaccines forveterinary use.
TheIPT'sinitial taskisbased onvaccine research andproduction.
B. IPTwasgranted themonopoly ofimport ofvaccines, serums andallergens because ofits
technical expertise byLawNo.87-20 of18May1987, supplementing LawNo.58-35 of15March 1958
onthestatutes ofthePasteur Institute ofTunis.
Themonopoly granted totheIPTisanintegral partofthecountry 'soverall preventive health
carepolicy.
TheIPTisaStateinstitutionformedicalresearch,productionandcontrolofserumsandvaccines.
Itscommercial activity isconfined toexercising themonopoly ofimport ofserums andvaccines.
Itsactivities andfunctions arefixed inaccordance withtheorganizational structure adopted
in1995 byitsBoard ofDirectors.G/STR/N/1/TUN/Add.1
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Thelawunder which itwascreated andismaintained provides forState control exercised
through theMinistry ofHealth.
C. Noother public orprivate body imports biological products.
D. Thevolume ofimports isdetermined asfollows:
Forthepublic sector: theIPTtakesasabasistheneeds indicated bypublic bodies responsible
forcarrying outnational vaccination programmes (Ministry ofHealth, Ministry ofAgriculture, Ministry
ofDefence).
Fortheprivate sector: theIPTtakes asabasis statistics ofprior sales figures toprivate
distributors (chemists) representative ofnational vaccine salesintheprivate sector.
Thetechnical specifications oftheimported items aredefined byspecialist technical committees
whose roleistoidentify anddetermine national needs interms ofquality andquantity.
E. Export prices arefixed bytheparties concerned.
F. Prices ofimported products arecalculated onabaseof100,theimport price expressed in
Tunisian dinars multiplied byacoefficient of1.56(covering duties, taxesandIPT'smargin) forserums,
vaccines andallergens.
Selling prices tothepublic (hospitals) andwholesale distributing chemists, chemists andthe
end-consumer aredetermined inaccordance withthespecific legalmargins foreachcategory towhich
theproduct issupplied.
Sales receipts cover foreign purchases ofthesame products. Thenetmargin isincluded in
theIPT'soperating budget tocarry outitsother tasks fixed byLawNo.85-35 of15March 1958,
i.e.public health, research andtraining.
G. Theprocurement methods arebased onaninternational consultation procedure withvaccine
manufacturers, mainly inEurope andNorth America.
Procurement contracts concluded inthecontext ofsuchinternational consultations arefixed
forashort termandsubject toTunisian regulations onpublic procurement.