RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/CPV/3
1 July 2003
(03-3504)
Working Party on the
Accession of Cape VerdeOriginal:  English
ACCESSION OF CAPE VERDE
Memorandum on the Foreign Trade Regime
In a communication circulated in document WT/ACC/CPV/1 on 11 November 1999, the
Government of the Republic of Cape Verde applied for accession under Article XII of the Agreement
Establishing the World Trade Organization (WTO).
The General Council established a Working Party (WT/GC/M/57) on 17 July 2000 with the
following terms of reference:  "To examine the application of the Government of Cape Verde to
accede to the World Trade Organization under Article XII, and to submit to the General Council
recommendations which may include a draft Protocol of Accession."
In accordance with established procedures (WT/ACC/1), the Secretariat is circulating the
attached Memorandum on the Foreign Trade Regime received from the Government of the Republic of
Cape Verde.  WTO Members wishing to submit questions on the Memorandum are invited to do so by
15 August 2003 for transmission to the aut horities of the Republic of Cape Verde.
_______________WT/ACC/CPV/3
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TABLE OF CONTENTS
I. INTRO DUCTION ................................................................................................................. ...1
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................1
1. Economy ...................................................................................................................... ..............1
(a) General de scription......................................................................................................... ..........1
(b) Current economic situation.................................................................................................. ....2
2. Economic policies............................................................................................................ ..........3
(a) Main directions of the ongoing economic policies..................................................................3
(b) Monetary and fi scal policies................................................................................................ .....5
(c) Foreign exchange and payments system .................................................................................6
(d) Foreign and domestic investment policies ..............................................................................7
(e) Competition  policies ........................................................................................................ .........7
3. Foreign trade in goods and services ........................................................................................8
4. Domestic trade in services................................................................................................... ...10
5. Information on financial movements relating to nationals working abroad,
remittances , etc............................................................................................................... .........11
6. Information on growth in trade in goods and services over recent years and
forecasts for ye ars to come.................................................................................................... .12
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES .........................................13
1. Powers of executive, legislative and judicial branches of government...............................13
2. Government entities responsible for making and implementing policies affecting
foreign trade .................................................................................................................. ..........14
3. Division of authority between central and sub-central governments.................................154. Any legislative programs or plans to change the regulatory regime..................................15
5. Laws and legal acts .......................................................................................................... .......15
6. Description of judicial, arbitral or administrative tribunals or procedures .....................15
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................16
1. Import Regulation............................................................................................................ .......16
(a) Registration requirements fo r engaging in importing.........................................................16
(b) Characteristics of  national tariff .......................................................................................... .16
(c) Tariff quotas, tariff exem ptions............................................................................................ .19
(d) Other duties and charges.................................................................................................... ....19
(e) Quantitative impo rt restrictions............................................................................................ 21
(f) Import licensing procedures ................................................................................................. .21WT/ACC/CPV/3
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(g) Other bord er measures ....................................................................................................... ...23
(h) Customs valuation........................................................................................................... ........23
(i) Other custom s formal ities ................................................................................................... ...24
(j) Pre-shipment  inspect ion ..................................................................................................... ....26
(k) Application of internal taxes on imports ..............................................................................26(l) Rules of  origin ............................................................................................................. ............27
(m) Anti-dump ing regime ......................................................................................................... ....28
(n) Countervailing duty regime .................................................................................................. .28
(o) Safeguard regime ............................................................................................................ ........28
2. Export Regulation............................................................................................................ .......28
(a) Registration requirements fo r engaging in exporting .........................................................28
(b) Customs tariff nomenclature, types of duties, duty rates, weighted average of
rates.......................................................................................................................... ................28
(c) Quantitative expo rt restrictions............................................................................................ .29
(d) Export licensing procedures................................................................................................. ..29
(e) Other measures .............................................................................................................. .........29
(f) Export financing, subsidy and promotion policies...............................................................29(g) Export performance requirements........................................................................................29
(h) Import duty drawback schemes ............................................................................................29
3. Internal policies affectin g foreign trade in goods.................................................................30
(a) Industrial policy ........................................................................................................... ...........30
(b) Technical regulations and standards ....................................................................................30(c) Sanitary and phytosanitary measures...................................................................................30
(d) Trade-related inve stment measures ......................................................................................31
(e) State tradin g practices..................................................................................................... .......31
(f) Free zones .................................................................................................................. ..............32
(g) Free economic zones ......................................................................................................... ......33
(h) Trade-related envi ronmental po licies ...................................................................................33
(i) Mixing re gulations .......................................................................................................... ........33
(j) Government-mandated counter-trade and barter...............................................................33
(k) Trade agreements leading to co untry-specific quotas allocation........................................33
(l) Government procurement practices .....................................................................................33
(m) Regulation of trade in transit.............................................................................................. ...34
4. Policies affecting foreign tr ade in agricultu ral products.....................................................34
(a) Imports..................................................................................................................... ................35
(b) Exports..................................................................................................................... ................35WT/ACC/CPV/3
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(c) Export prohibitions  and restric tions.....................................................................................35
(d) Export credits, export credit guar antees or insurance programmes .................................35
(e) Internal policies........................................................................................................... ............35
5. Policies affecting foreign trade in oth er sectors ...................................................................36
(a) Textile s regime ............................................................................................................. ...........36
(b) Policies affecting foreign tr ade in other ma jor sectors........................................................36
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................36
1. General...................................................................................................................... ...............36
(a) Intellectual pr operty policy................................................................................................ ....36
(b) Responsible agencies for policy formulation and implementation.....................................37
(c) Membership of international intellectual property conventions and of regional
or bilateral agreements........................................................................................................ ...38
(d) Application of national and m.f.n. treatment to foreign nationals .....................................38
(e) Fees and taxes.............................................................................................................. ............38
2. Substantive standards of protection......................................................................................40
(a) Copyright and related rights................................................................................................ ..40
(b) Trademarks .................................................................................................................. ...........41
(c) Geographical indications.................................................................................................... ....41
(d) Industrial designs.......................................................................................................... ..........41
(e) Patents..................................................................................................................... .................41
(f) Plant variety protection.................................................................................................... ......42
(g) Layout designs of in tegrated circuits ....................................................................................42
(h) Requirements on undis closed info rmation ...........................................................................42
(i) Any other categories of intellectual property.......................................................................42
3. Measures to control use of in tellectual property rights.......................................................42
4. Enforcement .................................................................................................................. ..........43
(a) Civil judicial pro cedures and remedies.................................................................................43
(b) Provisional  measures ........................................................................................................ ......43
(c) Any administrative procedures and remedies......................................................................43
(d) Any special bo rder measures ................................................................................................. 43
(e) Criminal procedures......................................................................................................... ......43
5. Laws, decrees, regulations and other legal acts relating to the above................................44
6. Statistical data on applications for and grants of intellectual property rights, as
well as any statistical data  on their en forcement .................................................................44
VI. TRADE-RELATED SE RVICES RE GIME .........................................................................44
1. General...................................................................................................................... ...............44WT/ACC/CPV/3
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2. Policies affecting trade in services......................................................................................... 54
(a) Government departments, agencies, professional associations or other bodies
with authority or a role relevant to  the conduct of service activities .................................54
(b) Judicial, arbitral or administrative tribunals or procedures providing for the
review of, or remedies in relation to, administrative decisions affecting trade inservices ....................................................................................................................... ..............55
(c) Provisions, including those in international agreements, concerning qualification
requirements and procedures, technical standards and licensing and/or
registration requirements for the supply of services ...........................................................55
(d) Provisions governing the existence and operation of monopolies or exclusive
service suppliers .............................................................................................................. ........55
(e) Provisions relating to safeguard measures as they apply to trade in services...................55(f) Provisions relating to international transfers and payments for current
transactions of services....................................................................................................... ....55
(g) Provisions relating to capital transactions affecting the supply of services.......................56
(h) Provisions governing the procurement by governmental agencies of services..................56
(i) Provisions concerning any form of aid, grant, domestic subsidy, tax incentive or
promotion scheme affectin g trade in services.......................................................................56
3. Market Access and National Treatment ...............................................................................56
(a) Limitations on the number of service suppliers ...................................................................56
(b) Limitations on the total value of  service transactio ns or assets..........................................56
(c) Limitations on the total number of serv ice operations or on the total quantity of
service output ................................................................................................................. .........56
(d) Limitations on the total number of natu ral persons that may be employed in a
particular s ervice se ctor ...................................................................................................... ...56
(e) Restrictions on, or requirements of specific types of legal entity through which a
service may be  supplied........................................................................................................ ..57
(f) Limitations on the particip ation of foreign capital..............................................................57
(g) Measures providing for less than the tr eatment accorded to national services or
service suppliers .............................................................................................................. ........57
4. Most-Favored-Nation Treatment ..........................................................................................57
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................57
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade
in services.................................................................................................................... .............57
2. Economic integration, customs union and free-trade area agreements.............................57
3. Labour markets inte gration agreements ..............................................................................58
4. Multilateral economic cooperation, membership in the multilateral economic
organizations, trade-related programs of  other multilatera l organizations......................58
VIII. OTHER PROCEDURAL  REQUIREM ENTS .....................................................................58
ANNEX 1 ........................................................................................................................ ......................59WT/ACC/CPV/3
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STATISTICS AND PU BLICATIONS...............................................................................................59
ANNEX 2 ........................................................................................................................ ......................71
LIST OF LAWS AND LEGAL ACTS...............................................................................................71
ANNEX 3 ........................................................................................................................ ......................76
INFORMATION ON IMPORT LICENSING PR OCEDURE S......................................................76
ANNEX 4 ........................................................................................................................ ......................79
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE
CUSTOMS VALUATION AGREEMEN T ..........................................................................79
ANNEX 5 ........................................................................................................................ ......................85
INFORMATION ON TECHNICAL  BARRIERS TO  TRADE ......................................................85
ANNEX 6 ........................................................................................................................ ......................87
INFORMATION ON STATE-T RADING.........................................................................................87
ANNEX 7 ........................................................................................................................ ......................89
SERVICES SECTORAL CL ASSIFICATIO N LIST .......................................................................89
ANNEX 8 ........................................................................................................................ ......................93
LIST OF FOREIGN T RADE AGREEM ENTS................................................................................93
ANNEX 8A ....................................................................................................................... ....................94
LIST OF CAPE VERDE'S FO REIGN TRADE AG REEMEN TS..................................................94WT/ACC/CPV/3
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I. INTRODUCTION
The Government of Cape Verde submits this Memorandum on the Foreign Trade Regime to
the World Trade Organization (WTO) in support of its application to accede to the WTO under
Article  XII of the Marrakesh Agreement Establishing the World Trade Organization.
Cape Verde, with a per capita income of less than US$1,500 per year in 2002, is a least
developed, peripheric insular  country as defined by the United Nations and recognized by the WTO.
The relatively small Cape Verdean economy has a number of structural weaknesses that affect its
economic growth.  Limited natural resources, a small manufacturing base, and a lack of agricultural
crops for export result in a serious trade imbalance, and Cape Verde's relatively large external debt
and increasing urban unemployment compound the country's economic problems.  The Cape Verde
economy relies heavily on development and donor assistance to balance the external account.
Despite these challenges, in recent years Cape Verde has made progress in improving its
economic condition.  During the 1990s, the Government successfully launched an economic
liberalization program that emphasized market refo rm and private sector-led growth.  Almost all
State-owned enterprises have been privatized, and the Government has created a favorable legal
climate for foreign investment.  Due to policy implemented from independence on, the country
benefits nowadays from a labor force with comparatively high educational and skills levels.
While a relatively small player in international trade (exports of CVE1,201 million and
imports of CVE30,519 millions), Cape Verde is affected by events and changes taking place in the
world economy.  The Government's objectives are to promote exports, especially of manufactured
goods, tourism, and transportation services, and to attract a higher level of foreign direct investment.
Membership in the WTO will assist Cape Verde in meeting those objectives.  Moreover, as a netimporter of almost everything needed for commerce and consumption, the country cannot afford to be
isolated from the processes that shape international trade.  Regardless of the size of its economy, Cape
Verde is of the view that it has much to offer the WTO, particularly by providing a better
understanding of the problems facing least developed countries in their trade relations. (Obs.:
CVE110.265 = 1 Euro)
Cape Verde wishes to join the WTO on terms appropriate to its status as a least developed,
peripheric insular country, where the production and distribution costs are very high affecting their
trade relations.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description
Cape Verde is a small archipelago, consisting of ten Islands and eight islets, archipelagic sea,
and adjacent and economic exclusive zones, located off the shore of a vast semi-arid and arid zone of
the Sahel (approximately 650 km from the African Coas t, between the parallels at 17º, 12' 5'' and 14º
48' of latitude North and the meridians at 22º 44' and 25º 22' of longitude West).  The Islands are
distributed in two groups according to their relative positions to the dominant winds.  The Islands of
Santo Antão, São Vicente, São Nicolau, Sal and Boa Vista form the Barlavento or Windward Islands,
and the Islands of Maio, Santiago, Fogo and Brava make up the Sotavento or Leeward Islands.
With an arid to semi-arid tropical climate tempered by trade winds from the Atlantic Ocean,
the Islands experience a diversity of microclimates.  Precipitation is meagre and very erratic,
averaging 200mm per year, and despite the torrenti al downpours that come with the rainy seasonWT/ACC/CPV/3
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(from July to September), water remains a scarce commodity.  There are no permanent streams or
fresh water wells, and the rains do not adequately recharge the underground water deposits, thus
aggravating the desertification process.  Cape Verde's mountainous geography increases and
accelerates the run-off of water during the rainy season.  Vegetation is sparse due to low humidity and
erosion brought on by the torrential rains and exacerbated by deforestation and overgrazing.
Cape Verde's islands are volcanic in origin, and most are rocky and mountainous.  The total
land area of the archipelago is 4,033 km2.  The national territory consists of approximately 403.3
thousand hectares.  Land use is as follows: arable land, 9.68 per cent; permanent crops, 0.5 per cent;
other, 89.82 per cent (1998 estimates).  The dearth of cultivated land adversely impacts rural
employment and food production efforts.  The production of staple foods such as corn and beans
covers less than 10 per cent of the population's needs.  Food aid compensates for the shortfall,
representing approximately 40 per cent of food impor ts.  Bananas are the only crop with some export
potential.  Its industrial production began in the 1950s, peaked in the 1960s and declined continually
from then on.  Since 1994 there has been no banana export.
The Islands have few natural resources.  The fi shing sector is not commercially significant
because Cape Verde does not have a continental platform.  The few mineral resources identified are
basalt, pozzuolana (a siliceous volcanic ash, which can be used to produce hydraulic cement).  Thereare small deposits of calcarium, gypsum, kaolin, limestone, clay, and mineral water.  There is a
significant potential for increased salt production.
According to the 2000 Census, Cape Verde's population totals 434,625, unevenly distributed
among the nine inhabited Islands of the archipelago.  Santiago is the most populous island with
236,627 inhabitants, followed by São Vicente with  67,163.  The least populous Island is Boa Vista
with 4,209 inhabitants, although area-wise it is the third largest island of the archipelago.  The annual
population growth-rate is 2.4 per cent.
(b) Current economic situation
With a population of 434,625 and a Gross National Product of CVE62,198.3 million or
approximately US$1,218 per capita, Cape Verde's small island economy faces a number ofchallenges.  Nevertheless, the country is harnessing its resources to best advantage.
Cape Verde's economic structure is different from that of the majority of countries on the
African Continent.  The services or tertiary sector commands 60 per cent of GDP and absorbs 66 per
cent of employment (1998 figures).  The primary sect or represents only 12 per cent of GDP due to the
enormous structural constraints facing agricultural production (1998 figures).  The secondary or
industrial sector represents a mere 19 per cent of  GDP and 18 per cent of employment (1996 figures).
These figures help to explain why Cape Verde did not have an export industry prior to1995.
The absence of structural incentives to allocate resources to local productive activities – for
example, the small size of the territory and domestic market, the lack of rain, and the isolation of the
Islands – constitutes a weakness of the Cape Verdean economy.  These constraints compel Cape
Verde to continue to depend on external resources to finance its economy, mainly foreign aid and
remittances from emigrants, which represent 20 per cent and 14 per cent respectively of GDP.  Thecommercial balance is in a deficit; from 1991 to  1997 exports covered on average about 4 per cent of
imports.
In spite of these challenges the economy is growing.  After a slow period in 1990-1991, real economic
growth in 2002 was on the order of 4 per cent to 5 per cent, and the inflation rate dropped from
4.3 per cent to an estimated 1.7 per cent in 2002.  According to data from the Institute of Labour andWT/ACC/CPV/3
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Professional Training, in the 1990s about 25  per cent to 26  per cent of the active population was
unemployed, but current trends point to a reduction in those figures.
2. Economic policies
(a) Main directions of the ongoing economic policies
- Independence and the development of a directed economy
Cape Verde gained its independence from Portugal in 1975 after five centuries of colonial
administration.  The country was able to harne ss the trust of the international community, which
translated into substantial support for Cape Verde's development process and the reconstruction of its
economy.
From independence to 1990, Cape Verde was governed by a one-party regime whose primary
focus did not include the development of exports.  There were serious constraints to the private sector.
The development plan of that period focused on strengthening the internal market through importsubstitution and State control of the economy.  Several public and mixed economy enterprises were
created in a variety of economic sectors, including: transportation (sea and air), fuel, agriculture,
poultry and livestock production, fishing, pharmaceuticals, civil construction, naval repair, insurance,
hotel services, and commercialization of basic goods .  The State played a significant role in the
economy, and by the end of 1988, 19 State owned and 14 mixed enterprises had been created.
The Government also took control of the poor existing financial sector.  The Bank of Cape
Verde (BCV) was created as Treasury Repository and Central Bank, taking over the functions of the
Portuguese Banco Nacional Ultramarino. By 1974, th e "Banco de Fomento" (the Foment Bank) a
public investment bank was created but the financial system regressed and came to be constituted by
BCV and "Caixa Económica e Postal" (credit union). Subsequently, the Government converted the"Caixa Económica e Postal" into "Caixa Económi ca" as a commercial bank and created the Social
Providence Institute.  Three financial institutions thus constituted the financial sector, all created as
public enterprises.
The development and creation of State-owned enterprises, the lack of managerial expertise
and qualified manpower, and the priority roamed to the internal market created negative effects on the
efficiency and competitiveness of the national economy.  Moreover, this strategy discouraged foreign
and private investment.  By 1985, the Government acknowledged that its economic policy had
outlived its usefulness, leading to a series of problems, including:
- production-factors inefficiency;
- increased public indebtedness;
- weak productivity and profitability of certain public investments;
- underdeveloped private sector;
- growing informal sector;
- limited competitiveness; and
- reduction and stagnation in development assistance.
Economic liberalization
Confronted with a multitude of challenges, the Government determined that a radical
restructuring of the economy was in order.  Cape Verde's conversion to multi-party rule in late 1990
followed by its consolidation and democratic  liberalization from 1991 onward galvanized the
economic restructuring process.  The State's role in the economy diminished substantially as theWT/ACC/CPV/3
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Government looked to increase Cape Verde's participation in the global economy, and the private
sector emerged as the engine for development.
One of the first tasks undertaken by the Government was to create the legal framework to
allow for market liberalization.  Cape Verde revised its Constitution to redefine the concept of public
property, removing certain sectors from the public activity reserve in order to stimulate private sectorinitiatives and to open up to foreign investment.  As a result, over 20 State-owned enterprises were
privatized, and Cape Verde saw a marked increase in economic activity.  A list of some of the
privatized State-owned enterprises is indicated in the Table that follows.
Table 1
Privatized Enterprises
Original enterprise New privatized enterprise
Agência nacional de viagens 7 new agencies
Agripec Agripec
Cabetur Cabetur
Conchave Conchave
Enavi Sociave (mindelo) Enavi (praia)
  emprofac 7 pharmacies
Fap Aripec Coopechaves Prolac
Justino lopes Associação sector argíco la justino lopes, Carmac, Propec
Interbase Salmar
Macsobil Macsobil
Metalcave Metalcave
Morabeza Morabeza
Onave Recoref, Belcab, Funcave, Lusonave
Sita Sita
Ultra Ultra
Electra Enacol
Enacol Electra
Bca Bca
Caixa economica Caixa economica
Garantia insurance company Garantia
Promotora Promotora
Cabo verde telecom Cabo verde telecom
Source: Report on the Technical Assistance to the Privatization, (GARSEE, 1997)
In the financial sector, the Government adopted a law removing banking activities from the
exclusive control of the State (Law. No. 52/III/ 89).  The sector progressively has become more
vibrant; Cape Verde currently has 4 commercial banks, with a total of 35 branches, and a few
parabanking and international financial institutions.  BCV serves exclusively as the central bank,notwithstanding the fact that, as an issuing bank, its power is limited because the Cape Verdean
currency is linked to the Euro and secured by the Portuguese Government. However, BCV continues
to licence qualified banks and other financial institutions in order to increase competition and promote
the development of a competitive financial sector.
- Pricing policies
The pricing policy in effect is governed by D ecree Law No 1/99 (Official Bulletin No. 1, first
Series 1 February), which regulates domestic prices of goods and services based on a policy of
transparency and truthful pricing.  Decree Law No. 29/2002, of 9 December [Official Bulletin No. 35,
first Series of 9 December 2002], removes the monopoly from the import of corn, rice, sugar andWT/ACC/CPV/3
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wheat grain. According to Resolution No. 14/2002, of 15 April [Official Bulletin No. 10, first Series,
of 14 April 2002] wheat flour can only be imported by MOAVE because of an existing contract with
the Government. However this monopoly and the pr ice control on wheat flower will end in 2004.
Cape Verde maintains a maximum price on rice, corn, sugar, wheat grain, wheat flour , bread, potato
and onion. Fuel is subject to a fixed price.
The current framework for pricing policy, as stated in the Government Program for the Sixth
Legislature for 2001-2005, is founded on macroeconomic stability and on fostering the convertibility
of the Cape Verdean Escudo to the Euro (Resolut ion No. 5 – A/2001, Official Bulletin No. 6, first
Series of 13 March).
(b) Monetary and fiscal policies
- Monetary policy
The Bank of Cape Verde's Organic Law calls for BCV to work with the Government in
defining and executing monetary and exchange policies, and in guiding and supervising the monetary,
financial, and exchange markets (Law No. 10/VI/ 2002 of 15 July).  BCV's function as the central
bank is to further the principal objective of Cape Verde's monetary policy – maintaining price stability
– while simultaneously regulating the nation's money supply.
Initially, the instrument utilised to exercise monetary policy was the control of credit
expansion through administratively established interest rates, and limits on credit.  The result was a
tendency to create excess liquidity in the banks, at enormous costs at the level of financial
intermediation.  In the framework of financial systems reform initiated in 1993, the BCV abandoned
the administrative methods of monetary controls in 1999 and started making monetary management
through indirect methods, namely through mandatory cash reserves and rediscount rates. At presentthe Central Bank uses market mechanisms almost exclusively for monetary management.
Regulation of monetary policy currently is achieved through open market operations,
variations in the cash reserve coefficients; and variations in the central bank rediscount rate, a little
used instrument.  The abandonment of credit limits in favour of the progressive utilisation of indirect
monetary policy instruments eliminated market distortio ns, and it allowed interest rates to constitute a
true vehicle through which to transmit monetary policy.
Cape Verde's monetary policy in 2002-2003 aims at stabilizing the macroeconomic situation
and supporting the exchange rate peg to the Euro.  BCV is committed to actively utilising the
monetary instruments at its disposal – including discount rates, open market operations, and its
liquidity absorption facility – in order to control li quidity and achieve its monetary targets.  In this
respect, the Government's Program for 2001-2005, specifies:
"Within the context of the Cape Verdean econo my, price stability and maintaining external
credibility are pivotal objectives for monetary policy.  Being so, the effective real and nominal tax
stability and the convertibility of the currency are crucial elements.  Thus, some policy consensus
shall be reached and reinforced for the fulfilment of the target objectives."
- Fiscal policy
Cape Verde's fiscal program reaffirms the Government's commitment to providing and
expanding the level of key social services, developing Cape Verde's infrastructure, and fostering
private sector-led economic growth, while maintain ing overall fiscal discipline.  Following the
significant improvement in fiscal performance in 2001, current fiscal policy is geared towards
continuing the consolidation, which will, among other things, support the BCV's policy of pursuingWT/ACC/CPV/3
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lower interest rates in the context of a sustainable balance of payments.  The overall fiscal deficit is
targeted to remain at 3  per cent of GDP (CVE2.2 billion), after falling from 19 per cent of GDP in
2000.  The Government will continue to run a siza ble primary recurrent surplus in the context of
increased outlays for health, education, and security.
With regard to Cape Verde's taxation regime, prior to 1991 the system was a constraint on the
execution of sound macroeconomic policy.  The complex administrative procedures instituted to
calculate and estimate taxes, tax fraud, and tax evasion resulted in social injustice.  Cape Verde took
the first steps in 1991 to reform its fiscal policy.  One of the great objectives of the fiscal reform
program, consecrated in the country's Development Plan (III PND), was to endow Cape Verde with a
modern, adequate, simple, and efficient taxation system.  The new system allowed the State to collect
more revenue, establish relatively moderate taxes, and broaden the tax base to include public
employees who previously did not pay taxes.  The program also included:
- creation of a more effective collection system;
- collection of a Single Tax on Income for individual and collective persons ( e.g.,
partnerships and corporations) rather than the several taxes that previously existed; and
- creation and application of a Single Property Tax to substitute for the several municipal
property taxes.
The reforms engendered some improvements in the quality of services provided to end-users,
but several constraints remained that need to be overcome.  Some of these constraints include the lack
of adequate information on tax and fiscal obligations, the existence of a large number of undeclared
taxpayers, and a lack of qualified personnel to administer the new system.
The taxation sector remains a challenge, and modernization reforms continue to be a priority
in order to reinforce Cape Verde's capacity to manage public finances.  During the last two years the
Government introduced amendments to the Single Tax on Revenue, primarily to update the tax
brackets, accelerate tax liquidation, and authorize a fiscal census of taxpayers and enterprises using
the estimate method.  Cape Verde has adopted a Value Added Tax (VAT), which will be implemented
in 2004.  The VAT assumes great importance within the country's fiscal policy considering itsimmediate impact on the national economy.  There continues to be a need to introduce the Special
Tax on Consumption, which will be applied to the value added to products and goods by retail
economic operators.
(c) Foreign exchange and payments system
- Foreign exchange and controls
Recognizing the importance of stability in exch ange operations to balance external accounts
and maintain price stability, Cape Verde's exchange policy initially focused on two key components:rigorous control of operations with the outside, a nd maintaining the stability of the exchange rates to
ensure that they reflected the real value of the national currency.  The exchange rate was calculated on
the basis of a group of currencies from Cape Verde's principal commercial partners.  Given the high
degree of openness to the outside that characterizes Cape Verde's economy, the exchange rates were
sensitive to internal inflation.
After Cape Verde liberalized its exchange operations, it was necessary to reformulate the
country's entire exchange policy.  In 1998, Cape Verde signed an Exchange Cooperation Accord with
Portugal, which establishes a fixed parity between the Cape Verde Escudo with the Portuguese
Escudo, and consequently the Euro (Resolution No. 81/V/98 of 11 May).  The rate of exchange is 1
Euro to CVE110.265.  Under the terms of the Accord, Cape Verde commits itself to adoptingWT/ACC/CPV/3
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macroeconomic guidelines that safeguard this fixed parity, which has repercussions on the definition
and execution of budgetary and monetary policies.
With respect to foreign exchange controls, th e system in effect facilitates 100 percent the
transfer of foreign investment capital as long as the foreign investor is registered as such in the Bank
of Cape Verde and is authorized by the Minister of Finance and Planning to carry out foreigninvestment operations (Law No. 89/IV/93 of 13 December).  There are no restrictions on opening
bank accounts in foreign currency, and BCV's authorization is not required to obtain currency to
import merchandise valued at up to CVE5,000,000 (Decree Law No. 25/98 of 29 June).  Interest
payments on loans or credits previously authorized by the same institution, in any amount, do not
require prior authorization.  BCV may, however, requ ire the transfer of capital arising from the sale,
liquidation or dissolution of an enterprise to be effectuated in quarterly instalments if transferring the
sum in full is likely to cause serious disturbance to the Balance of Payments (Foreign Investment LawNo. 89/IV/93, published in Official Bulletin 13/12/93) (see also Section VI.2 (f)).
- Relations with International Monetary Fund
On 4 April 2002, the Executive Board of the International Monetary Fund approved a three-
year arrangement for Cape Verde under the Poverty Reduction and Growth Facility (PRGF) for
approximately US$11.6 million (90 per cent of quota).  In December 2002, the IMF completed thefirst review of Cape Verde's performance under an economic program supported by the PRGF.  The
IMF commended Cape Verde on its significant progress in stabilizing public finances, regularising
domestic and external arrears, rebuilding international reserves, and continuing its structural reform
agenda.
(d) Foreign and domestic investment policies
Cape Verde's major policy objectives on investment are to promote and encourage a
transparent and fair business environment for both domestic and foreign investors, and to increase the
role of the private sector in Cape Verde's development process.  To achieve these objectives, the
Government adopted the Foreign Investment Law (L aw No. 89/IV/93, published in Official Bulletin
13/12/93) and the Industrial Statute (Decree Law No. 108/89 published in Official Bulletin 30/12/89).
The Foreign Investment Law sets the conditions for foreign direct investment made in any
sector of economic activity.  All sectors are open to investment, unless the enterprise is a threat to
national security, the environment or public health, or it violates domestic laws and regulations (see
section IV.3 (d) for further discussion on the Foreign Investment Law).
The new investment policy ensures that applicable procedures are open, efficient, and
transparent.  Investors can easily obtain clear guidance on these procedures from the Center for
Tourism and Export Promotion of Cape Verde, a government department under the supervision of theMinistry of Economy, Growth, and Competitiven ess charged with promoting trade and investment
opportunities in Cape Verde.
(e) Competition policies
The regulation of competition policy in Cape Verde is based on the need to provide for
product diversity, economical, rational, and technical advances (Preamble of Decree Law No. 2/99).These underlying principles have led to the creation of Competition Advisory Council, an
independent quasi-judicial government entity, which is not yet operational. The Council's primary
function would be to adjudicate unfair trade claims , but it would also propose draft legislation to the
government.  Decisions of the Council  would be appealed to the courts.WT/ACC/CPV/3
Page 8
The Government also created independent regulatory agencies with competence over
negotiations of quality, quantity, and price with the monopolistic concessionaries, resulting mainly
from the privatization of some enterprises (Res olution No. 70, 71, 72/98 published in the Official
Bulletin No. 48, I Series, fifth Supplement of 31 December). Of the three agencies created, ANSA
(National Food Security and Staple Goods Agency) which regulates food security is the only one thatis operational [Decree Law No. 29/2002 of 9 December, Official Bulletin No. 35, first Series, of
9 December 2002.  The functions of the other two agencies – ARM (Multisectorial Regulatory
Agency), regulating fuel, telecommunications, water and power, transports , civil aviation,
environment and similar, and ARFA (Regulatory and Supervisory Agency for Pharmaceuticals and
Food Products), regulating pharmaceuticals drugs – presently are conducted by the relevant
government ministries.
Within the above stated framework, the Government proposes:
"To reinforce and update the State sectors with leadership responsibilities with the necessary skills
for the performance of their tasks. Within this fr amework, special attention shall be paid to the
newly created regulatory agencies by clearly stating their competences so as to prevent
mechanisms of accusations on the performance of their duties, with the view of safeguarding the
consumer's interests, and assuring fair competition practices. The Government will assure thatethical principles prevail between the State and the market, and amongst the market operators at
large".
3. Foreign trade in goods and services
Cape Verde has a significant trade imbalance, as evidenced by the data in the tables below.
Specifically, in 2001 exports were US$9.7 millions and imports were US$ 247.7  millions.  The
country's small island economy, limited natural re sources, small growing acreage, and inadequate
agricultural base, cause Cape Verde to be dependent on imports for the bulk of its manufactured
goods and food products requirements.
Portugal, Cape Verde's colonial administrator until 1975, is the country's principal trading
partner.  In 2001, 79.1  per cent of exports and 45.8  per cent of imports by value were from ordestined for Portugal.  By region, Europe was Cape Verde's major trading partner, accounting for 80
 per cent of exports and 77.3  per cent of imports.  Interestingly, while Africa is close geographically,
it provided only 1.7  per cent of exports and 2.2  per cent of imports by value in 2001.  The United
States by contrast accounted for 17.7  per cent of Cape Verde's exports in 2001 and only 3.2  per cent
of imports in 2001.
Cape Verde's exports increased from CVE1,016 millions of in 1998 to CVE1,201 millions of
in 2001.  Although not a spectacular increase, the export trend is upward.  Most of the exports were infootwear, textiles, fish and fish products.  On the import side, the preponderance of Cape Verde's
consumer goods came from Portugal .
The following tables list Cape Verdean exports and imports by economic zone.
Table 2
Exports of Goods and Services by Economic Zones (in thousands of dollars)
1998 1999 2000 2001
Economic Zones Value  % Value  % Value  % Value  %
Europe 10,286.8 99.2 11,275.6 99.0 9,276.8 85.2 7,832.2 80.3
Portugal 9,266.3 89.4 10,068.2 88.4 8,552.0 78.6 7,710.4 79.1WT/ACC/CPV/3
Page 9
1998 1999 2000 2001
Economic Zones Value  % Value  % Value  % Value  %
Spain 847.0 8.2 779.0 6.8 379.7 3.5 24.35 0.2
Germany - - - - 241.6 2.2 64.93 0.7
Others 173.5 1.7 428.4 3.8 103.6 1.0 32.46 0.3
America 51.0 0.5 87.6 0.8 1,346.2 12.4 1,728.8 17.7
U.S.A. 51.0 0.5 87.6 0.8 1,329.0 12.2 1,728.8 17.7
Others - - - - 17.26 0.2 - -
Africa 189.9 1.7 162.3 1.7
South Africa 60.41 0.6 - -
Senegal - - 81.16 0.8
Others 129.4 1.2 81.16 0.8
Rest of the World 30,615 0.3 29.2 0.3 69.04 0.6 24.35 0.2
Total 10,368.4 100 11,392.4 100 10,881.9 100.0 9,747.6 100.0
Source:  INE/BTCE
Table 3
Imports of Goods and Services by Economic Zones (in thousands of dollars)
1998 1999 2000 2001
Economic Zones Value  per cent Value  per cent Value  per cent Value  per cent
Europe 181,610.4 78.8 199,639.7 76.2 185,856.1 78.3 191,364.3 77.3
France 11,317.5 4.9 6,368.1 2.4 11,114.9 4.7 8,286.7 3.3
Holland 15,950.6 7.0 22,366.1 8.5 14,247.5 6.0 19,252.7 7.3
Portugal 107,245.6 46.5 119,961 45.8 114,118.1 48.1 113,408.0 45.8
Spain 5,561.8 2.4 7,468.4 2.8 6,437.7 2.7 10,356.3 4.2
Germany 10,633.7 4.6 8,899.7 3.4 6,662.1 2.8 7,807.8 3.2
Others 30,901.1 13.4 34,576.4 13. 2 33,275.8 14.0 33,398.3 13.5
America 21,747.1 9.4 21,937.7 8.4 17,975.5 7.6 17,165.8 6.9
Brazil 5,551.6 2.4 6,816.0 2.6 6,049.4 2.5 5,616.4 2.3
U.S.A. 13,195.2 5.7 13,748.8 5.2 10,657.6 4.5 7,994.5 3.2
Others 3,000.3 1.3 1,372.9 0.5 1,268.6 0.5 3,563.0 1.4
Africa 6,572.1 2.8 9,376.8 3.6 4,746.3 2.0 5,470.3 2.2
South Africa - - 914.7 0.4 1,728.8 0.7
Ivory Coast 1,602.2 0.7 2,142.2 0.8 1,398.0 0.6 2,012.8 0.8
Senegal 1,765.5 0.8 1,460.6 0.6 1,268.6 0.5 933.4 0.4
Others 3,204.4 1.4 5,774.1 2.2 1,314.5 0.5 795.4 0.3
Asia 17,287.5 7.5 27,887.0 10.6 25,630.0 10.8 29,218.4 11.8
Japan 8,582.5 3.7 13,680.6 5.2 12,659.6 5.3 14,528.0 5.9
Others 8,705.0 3.8 14,206.4 5.4 12,970.3 5.5 14,690.4 5.9
Rest of the World 3,388.1 1.5 3,232.7 1.2 3,270.6 1.4 4,480.2 1.8
Total 230,605.2 100 262,074.0 100.0 237,478.4 100.0 247,699.1 100.0
Value in 1,000
US$Fonte: Boletim de Estatisticas (Banco de Cabo Verde)
Taxa de cambio (Valores
medios)
1998 = 97,991999 = 102,72000 = 115,882001 = 123,21
Source:  INE/BTCEWT/ACC/CPV/3
Page 10
4. Domestic trade in services
The services sector is of critical significance to the Cape Verdean economy, with particular
emphasis on tourism and related services.  In view of the importance of attracting foreign capital for
development, Cape Verde has established an investment regime that is fair, open, and transparent.
The laws regulating foreign direct investment are the Foreign Investment Law, the Tourism UtilityLaw, and the Industrial Law (for further discussion on investment and services, see sections II.2 (d)
and VI.1).
In recent years, Cape Verde's efforts have met with some success, as the level and quality of
investments continue to improve.  In 2002, investments in both the industrial and tourism sectors
increased dramatically.  Cape Verde's largest investors by country are Portugal, Italy, and Germany.
Data on foreign investment for approved projects in 2001 and 2002 are as follows:
Sector Year Amount - (US$)
Industrial 2001 3,687,000
2002 8,198,000
Total 11,885,000
Tourism 2001 5,586,000
2002 27,762,000
Total 33,348,000
Other 2001 8,181,000
2002 687,000
Total 8,868,000
Source:  PROMEX
Table 4
Foreign Direct Investment in Cape Verde 2001-2002 (in dollars)
Source:  PROMEX05,000,00010,000,00015,000,00020,000,00025,000,00030,000,00035,000,000
Industrial Tourism Other2001
2002
2-year TotalWT/ACC/CPV/3
Page 11
Table 5
Foreign Direct Investment by Country 2001
Source:  PROMEX (note that Cape Verde accounts for 0.31 per cent of investments).
5. Information on financial movements relating  to nationals working abroad, remittances,
etc.
Throughout Cape Verde's history emigration has been a significant economic phenomenon.
The migration flows serve as an "escape valve" for the country's fragile economy, which suffers from
periodic droughts and the consequent hunger, mortality, and unemployment they produce.  Estimates
are that Cape Verde's emigrant population is larger than the resident population.  Many emigrants
settle in the United States, but there are also large groups in Portugal, France, Holland, and Italy, and
Angola and Senegal.
Remittances from emigrants1, many of whom increasingly are highly educated young
professionals, play a crucial role in Cape Verde's economy, representing about 14 per cent of GDP.
Given the deterioration in the global economic environment after 11 September 2001, remittances –
largely originating from the United States and Portugal – are expected to fall by some 3½  per cent,
reflecting the considerable deceleration of growth rates, and the rise in unemployment rates, in thosecountries.
                                                     
1 Cape Verde law defines "emigrant" as any person born in Cape Verde – regardless of whether s/he
maintains Cape Verdean citizenship – who can prove that s/he has permanent residence in a foreign country
(Decree Law 53/95 of 26 September).Mozambique
0.49%German y
1.99%Cape Verde
0.31%
Norway
5.72%Canar y Island
40.36%
Italy
23.48%Portugal
27.64%WT/ACC/CPV/3
Page 12
Table 6
Emigrant Remittances by Country of Origin (in millions of CVE)
1997 1998 1999 2000 2001 2002
United States 1,399.62 1,625.06 1,948.94 2,321.10 2,515.57 2,193.50
Netherlands 839.17 1,137.79 1,386.49 1,136.00 1,352.04 881.40
France 672.98 824.06 877.72 1,034.00 1,532.93 1,791.92
Italy 484.77 552.10 637.94 608.50 720.13 386.97
Germany 241.92 235.11 245.42 273.40 237.58 80.62
Portugal 1,057.00 1,878.71 1,490.09 1,578.10 1,726.24 2,023.87
United Kingdom 176.57 235.88 258.23 142.00 122.38 105.18
Switzerland 219.81 187.76 195.49 160.90 164.90 132.21
Angola 10.41 9.68 17.73 16.10 14.16 3.91
Luxembourg - - - 160.50 108.08 90.35
Others 517.99 474.84 395.57 302.93 357.74 320.10
Total 5,620.24 7,160.99 7,453.62 7,733.53 8,851.75 8,010.03
Source: BCV
In an effort to facilitate financial ties with its emigrant population, Cape Verde law authorizes
emigrants to open special banking accounts in-country – emigrant savings accounts or emigrant
accounts in CVE or foreign currencies – upon verification of their emigrant status2.  Prior
authorization from BCV is not required to open any of the special accounts.  Credit movements in
those accounts similarly do not require prior approval (as long as instructions contained in BCVnotices are observed), however debits may be made only by individuals residing in Cape Verde or by
express authorization from the owner of the account.  Debit movements in the other special accounts
may be done freely only for the acquisition and construction of real property or to carry out
benevolent actions, for expenses in country, as well as for transfers to the outside, in whole or in part,
of the balances in foreign currency accounts.
6. Information on growth in trade in goods and services over recent years and forecasts for
years to come
Information on growth in trade and services by economic zone can be found in paragraph 3
above.  The growth in trade depends to a large extent on product diversification, stimulation of export
activity, and the adoption of an appropriate trade policy.  Cape Verde recently became eligible forduty-free access to the U.S. market under the African Growth and Opportunity Act, which should
provide additional export stimulation and opportunities for Cape Verdean exports.  It became also
eligible for quota-free and duty-free access to Canadian markets under the Memorandum of
Understanding on Least Developed Countries Initiative signed in Praia on 25 April 2003.
Further, the trend line between 1998 (CVE1,016 million) and 2001 (CVE1,201 million) for
exports was slowly but steadily upwards in nominal terms because in reality during the same period
the trend of increasing dollar exchange rate entangled a value downfall from US$10,368.4 thousands
in 1998 to US$9,747.6 thousands of in 2001.  The Gove rnment of Cape Verde believes that accession
to the World Trade Organization will stimulate and accelerate the growth of exports in the future.
May be the fixed exchange rate between CVE and EURO ought to minimize this negative effect.
                                                     
2 Emigrants may provide verification of their status either by showing the bank a work authorization
and a valid certificate of residence, or other documents that, by their nature, may be considered by the Bank of
Cape Verde as equivalents (Ministerial Decree No. 61/95 of 4 December).WT/ACC/CPV/3
Page 13
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
1. Powers of executive, legislative and judicial branches of government
The Cape Verde Constitution was first promulgated on 7 March 1980, and has undergone two
major revisions, the most recent of which dates back to November 1999.  The supreme bodies are:the President of the Republic, the National Assembly, and the Government, and the Courts.
The Constitution provides for a separation of po litical powers.  The President of the Republic
is the Head of State; he is elected by popular vote for a five-year term, is invested and takes oath
before the National Assembly and can be re-elected only once.
The Government in Cape Verde's Parliamentary Regime is handled by a Prime Minister who
is nominated by the President of the Republic after consultation with the sitting parliamentary parties,
considering the electoral results and the existence or not of political majority party or partisancoalition or colligation possibilities.  He is normally the leader of the most voted party.
Legislative power resides in the unicameral National Assembly made up of 72 members
elected to a five-year term.  The laws approved by the National Assembly are forwarded to the
President of the Republic who may either promulgate them or send them back for a second reading.
Matters referred back by the President of the Republic must pass the National Assembly by two-thirdsvote (constitutional matters) or simple majority (other matters) before it becomes law.
The Cape Verde judicial system is comprised of:
- Constitutional Courts;
- Supreme Court of Justice;
- Judicial Courts of the First Instance;
- Court of Accounts;
- Military Courts; and
- Fiscal and Customs Courts.
Other Courts may be created by law, such as Judicial Courts of Second Instance,
Administrative Courts, Arbitration Courts and Conf lict Resolution Institutions with jurisdiction upon
smaller territorial areas than those assigned to Judicial Courts of the First Instance.
The President of the Supreme Court of Justice is nominated by the President of the Republic
after being selected from among the Justices of the Supreme Court, having heard the Judicial
Magistracy Superior Board [Article 214 of the Constitution of Cape Verde].
The Supreme Court of Justice has its Headquarters in Praia, and its jurisdiction extends all
over the national territory.
The system is divided into first, second and third class judicial districts, with the Supreme
Court of Justice being the court of last instance.  First Class Judicial District Courts are located in
Praia and Mindelo.  The remaining municipalities are Second Class Judicial District Courts, except
for the municipalities of Sao Domingo and Paul, which are Third Class Judicial District Courts.
The jurisdiction of the Third Class Judicial District Courts is limited to cases valued at up to
CVE200,000 and maximum criminal penalties of no more than two years imprisonment.  Mattersdecided in Third Class courts may be appealed either to First or second Class courts provided the
claim is valued at CVE200,000.WT/ACC/CPV/3
Page 14
The jurisdiction of First and Second Class Judicial District Courts are practically the same
(except for minor differences in criminal cases); they are empowered to hear all cases within their
region regardless of the value of the claim.  Cases decided in the First and Second Class courts may
be appealed to the Supreme Court provided the claim is valued at or above CVE500,000 (for a
discussion of administrative procedures in customs cases, please see Annex 4).
There is currently no arbitration or mediation law in Cape Verde, although a draft law is being
prepared.
Figure 1
Cape Verde's Judicial System
First Class Judicial District Courts
Appeals from 3rd class courts for 200,000 CVE and higher
Appeals to S.Crt. for 500,00 CVE and higher
Third Class Judicial DistrictCourts
Civil disputes up to 200,000 CVE
Appeals either to 1st or 2nd Class courtsSecond Class Judicial District Courts
Appeals from 3rd class courts for 200,000 CVE only
Appeals to S.Crt. for 500,000 CVE and higherFiscal and Customs Courts
Appeals of administrative decisionsSupreme Court of Justice
Original jurisdiction in Constitutional questions
Appeals of administrative and lower court decisions
2. Government entities responsible for making and implementing policies affecting foreign
trade
Trade policy matters are the responsibility of the Ministry of Economy, Growth and
Competitiveness who coordinates with the other ministries that have jurisdiction over trade-related
matters.  Those ministries include:
- Ministry of Finance, Planning and Regional Development;
- Ministry of State, Infrastructure and Transport;
- Ministry of State and Health;
- Ministry of Justice and Internal Administration;
- Ministry of Environment, Agriculture and Fisheries;
- Ministry of Education and Human Resource Capacity-Building; and
- Ministry of Foreign Affairs, Cooperation and Communities.
In formulating trade policy, the Government convenes an inter-ministerial group composed of
all ministries with an interest in the subject matter under discussion.  The Government also solicits the
views, as the case may be, of industry associations, the Chambers of Commerce, and the private
sector, and the municipalities.  The matter is then referred to the Council of Ministers, which has final
authority to formulate trade policy.
As part of a United States-funded technical assistance program, a task order has been
approved to study and issue recommendations on Cape Verde's current trade policy creation and
coordination procedures.  The study will take place from May 1 to 15 May 2003.
It is envisaged that the study recommendations will result in the creation of a WTO Unit
within the Government of Cape Verde that wi ll (1) develop trade policy initiatives and makeWT/ACC/CPV/3
Page 15
recommendations to the Council of Ministers; (2) coordinate the implementation of trade policy
decisions made by the Council of Ministers; (3) coordinate WTO related  matters within the
Government, such as procuring timely responses to questions from the Working Party on Cape Verde
accession; (4) prepare notifications to the WTO; and (5) carry out WTO related functions as deemed
necessary by the Government or the Council of Ministers.
3. Division of authority between central and sub-central governments
The State of Cape Verde is based on a unitary system, but the law does provide for local
municipalities.  The central government has authority over political, legislative, and administrative
issues of national scope.  There are 17 local municipalities in Cape Verde; they are empowered solely
to promulgate regulations concerning local matters ( e.g., water distribution or sanitation matters),
provided those regulations do not conflict with the Constitution or laws and regulations promulgated
by higher authorities.
The Ministry of Finance, Planning, and Regi onal Development oversee the municipalities.
4. Any legislative programs or plans to change the regulatory regime
The Government's economic liberalization reform program and the WTO accession process
have necessitated the drafting and/or modification of existing laws and regulations.
The following new laws are currently under consideration:
- Customs Law;
- Intellectual Property Law (patents and trademarks); and
- Law on Foreign Trade.
The following laws have been published but are currently under review for possible revision
and regulation:
- Decree-Law No. 5/99, of 1 February, Law on Domestic Trade;
- Decree-Law No. 1/99, of 1 February, Law on Pricing Regime;
- Decree-Law No. 2/99, of 1 February, Law on Competition; and
- Decree-Law No. 4/99, of 1 February, Law on Economic Activity.
Further details on proposed legislative or regulatory changes have been provided in the
appropriate sections of this Memorandum ( e.g., proposed changes to the Customs law can be found in
Section IV.1 (b)).
5. Laws and legal acts
Information on specific laws and legal acts is provided in Annex 2. All laws and legal acts are
published in Cape Verde's Official Bulletin.
6. Description of judicial, arbitral or administrative tribunals or procedures
The resolution of conflicts in Cape Verde takes place in the courts and the Public Ministry
represents the State, exercises penal action, and defends democratic legality, rights of the citizens,
public interest and any other interest conferred upon him by the Constitution or the law.  He is
entrusted with power to participate according to the law, and autonomously, in the execution of the
criminal policy defined by the political powers [A rticle 222 of the Constitution of Cape Verde].WT/ACC/CPV/3
Page 16
Although there is currently no arbitration or mediation law in Cape Verde and a draft law are
being prepared, as regarding external investments, Article 17 of Law No. 89/IV/93 of 13 December
(External Investments Code) establishes a framework for conflict resolution between foreign investors
and the Government of Cape Verde.
The Attorney General is nominated by the President, under proposal of the Government, for a
renewable five-year term.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing
Cape Verde law requires all businesses engaging in import operations to register with the
Conservatory of Commercial Registry of the ministry responsible for Justice and with the ministerial
department responsible for commerce. (Decree-Law No. 1/75 of 5 July (implemented by Ministerial
Ordinance  No. 13 of 1978)).  In recent years, the government has sought to decentralize and
streamline many state functions, and has thus delegated the registration authority of the ministerial
department responsible for commerce to the Chambers of Commerce.  Currently, businesses seeking
to import goods must register with the Chambers of Commerce.  Individuals seeking to import goods
for personal use (in limited quantities and not for resale) are not subject to the registrationrequirement.
The following activities are not considered "import operations" and are thus exempt from the
registration requirement:
- importation of goods destined for the diplomatic and consular representatives accredited
in Cape Verde;
- importation of consumption goods for social, cultural, recreation, sports, and non-profit
institutions destined for the exercise of their activities;
- importation of religious articles for churches;
- importation of live animals, seeds, plants, pesticide fertilizers, reagents and other
laboratory materials of interest to the development of agriculture, forestry and livestock;and
- importation of materials for government use.
(b) Characteristics of national tariff
- Characteristics of national tariff
Cape Verde's import regime has undergone significant liberalization, beginning in 1991, and
it continues to evolve.  Before 1991, imports were subject to prior registration requirements,
quantitative restrictions, as well as multiple taxes and rates of duties, which for the most part werevery high.  By 1999, Cape Verde had lifted all of its quantitative restrictions on imports (Decree-Law
No. 3/99 of 30 December).  [See subparagraph II.2. (a) and subparagraph IV.- (f) Special requisites
for importers of staple products].
Customs duties are generally applied on an ad-valorem basis (calculated as a percentage of
the value of the merchandise).  The base rates on duties in effect are 0 per cent, 5 per cent,10 per cent, 15 per cent, 20 per cent, 25 per cent, 30 per cent, 35 per cent, 40 per cent and 50 per cent.
The weighted average rates applied on imports for the years 1995 to June 2002, are as follows:WT/ACC/CPV/3
Page 17
Table 7
Weighted Average Rates on Imports 1995-2002
Year % Year %
1995 24.10 1999 29.13
1996 27.54 2000 30.21
1997 26.56 2001 30.29
1998 27.40 2002 30.98*
* (June 2002)
Unfortunately, Cape Verde does not have a calculation of the average tariff rate.
Consequently, figures are not available for either the overall tariff rate or for agricultural imports.
Table 8
Customs Revenues Collected between 1998 and 2001
Revenue Designation 1998 1999 2000 2001 2002*
Import Duties 2,306,958,395 2,837,620,224 3,255,398,453 3,706,055,437
Customs General
Emoluments1,145,362,105 1,296,788,929 1,440,027,928 1,623,678,689
Consumption Tax on Imports 1,061,303,083 1,330,861,056 1,527,426,575 1,684,080,697
Stamp Tax 10,888,354 9,683,145 10,595,546 10,661,791
Consumption Tax o/National
Production245,599,854 227,140,656 163,844,389 89,171,873
Imp. Exp. On/Cons.Alcohol
& Tobacco (IEC)105,724,564 105,267,948 109,928,694 110,498,250
Total 4,875,838,353 5,807,363,957 6,507,223,585 7,224,146,737* Data for
2002 and 2003
are In the
Table
Following
Graph below
Customs Revenues - 1995 to 1st Sem 2002
01,000,000,0002,000,000,0003,000,000,0004,000,000,0005,000,000,0006,000,000,0007,000,000,0008,000,000,000
12345
Years Revenues Collected
Import Duties
Customs General
Emoluments
Consumption Tax onImports
Stamp Tax
Consumption Taxo/National Production
Imp. Exp. On/Cons.Alcohol&Tobacco(IEC)
TOTALWT/ACC/CPV/3
Page 18
Table 9
Customs Revenues Collected in 2002 and 2003 (January to April)
Cod. Clas. Econ. Assignment 2002 April 2003
01 1.1.72.05.01 Import Duties 4,042,098,345 1,315,363,341
02 1.1.72.05.02 Tonnage Tax 12,849,742 4,180,070
03 1.1.72.04.06 Special Storage Tax 1,247,728 473,168
04 1.2.73.04.06 Storage 100,352 102,198
05 Surcharge ("ISDC") 52,362 100
06 1.2.78.01.00 Interests ("Rights and Credits") 383,606 128,250
07 1.1.77.01.00 Late Payment Penalty 582,095 19,944
08 1.1.72.05.03 General Customs Fees 2,071,679,564 702,757,650
09/10 1.1.77.90.00 Tax Penalties 19,587,368 6,376,847
1.1.72.04.01 Consumption Tax 1,798,058,669 557,274,221
1.1.72.06.90 Stamp Duty 11,365,377 3,451,274
1.2.70.02.01 Publications and Printed Matters 26,981,182 9,428,387
15/16 1.2.73.03.06 Personal Fees 107,884,057 33,950,487
1.1.72.04.07 Free-shop Tax 4,289,178 1,204,398
18/19 1.2.73.01.90 Miscellaneous Tax 17,817,777 6,357,517
1.1.72.04.02 Consumption Tax on Local Production 107,969,599 31,767,845
1.1.72.04.04 Special Tax on Consumption (Alcohol and
Tobacco)124,500,268 37,451,535
1.1.72.04.08 Environmental Tax 113,081,798 25,988,127
1.1.72.04.09 Community Tax 107,511,738 38,162,016
Total 8,568,040,805 2,774,437,375
Source: Customs General Directorate
- Customs Tariff Nomenclature
Cape Verde adopted the Economic Community of West African States (ECOWAS) customs
nomenclature, which is based on the Harmonized System of Commodity Classification (HS, 1996
version) (Law No. 85/V/98 of 31 December).  The ECOWAS nomenclature utilises ten digits, which
can be explained as follows:
- first and second digits indicate the number of the HS chapter;
- third and fourth digits indicate the heading in the HS chapter;
- fifth and sixth digits indicate the subheading of the HS chapter;
- seventh and eighth digits are for ECOWAS statistical classification; and
- ninth and the tenth digits correspond to the statistical classification at the national level.
Cape Verde, as well as the ECOWAS countries, uses the 1996 version of the Harmonized
System.
- Types of Duties
Of the three types of customs duties, ad valorem , specific, and combined (an ad valorem and
a specific component), Cape Verde predominately uses ad valorem  rates of duty.WT/ACC/CPV/3
Page 19
As is normal in all countries, customs duties provide revenue for Cape Verde's General
Budget.  Duties are applied on imported goods in accordance with the rates mentioned on the Cape
Verde Customs Tariff, Chapters 1 to 97, Sections 1 to 21.
In addition to customs duties, imported merchandise may also be subject to certain internal
taxes that must be paid before the goods are released from Customs. This group of taxes (listed anddiscussed in paragraph 1(d) below) will be eliminated upon implementation of the Value Added Tax
(VAT). The VAT Law and its Regulation has been adopted and shall enter into force in January 2004.
-M F N  R a t e s
Cape Verde has been applying minimum tariff rates of duties to goods regardless of country
of origin.
- Preferences
Cape Verde is a member of the Economic Community of West African States (ECOWAS)
[Resolution No. 115/IV/95, of 3 November] and has free trade agreements with a group of African
Portuguese speaking countries (Angola, Guinea-Bissau, Mozambique and Sao Tome and Principe)
and trade arrangements with Mauritania.
(c) Tariff quotas, tariff exemptions
Cape Verde does not apply any tariff quotas on imports.
Cape Verde encourages national economic activities such as agriculture, fishing, industry,
tourism, transport, communication, and facilitates the creation of port and airport infrastructures.
(d) Other duties and charges
Aside from duties and other charges, imports may also be subject to a 1.04 per cent fee on the
cost, insurance and freight (CIF) value, and charge s for the payment of services rendered. (Ministerial
Ordinance No. 71/78 of 14 October, amended by  Ministerial Ordinance No. 27/79 of 28 April)
- Value Added Tax
The Value Added Tax ( VAT ) is a general tax on consumption that is applied to the
transmission of goods and services provided or performed in the national territory.  The VAT is a
multiphase, non-cumulative tax on the different phases of production; its liquidation mechanism is bythe indirect subtractive method, so as to distribute the payments through the various entities
intervening in the production and distributions of goods.
In Cape Verde, as in most other countries, the destination principle in international commerce
is adopted, totally exempting exports and similar operations, and taxing imports of goods for
consumption on the same basis as identical goods nationally produced.
All enterprises and other single and collective (companies, corporations and partnerships) are
subject to the VAT provided that:
- they are residents of Cape Verde or have an establishment or representation in the
national territory, exercise independently, for profit or not, activities of production,
commerce or services, including extractive, agricultural, forestry, livestock and fishing
activities;WT/ACC/CPV/3
Page 20
- perform any taxable operation, as long as they fulfil the assumptions of real application of
the Taxation on Income (IUR); or
- perform imports of goods, according to the custom legislation.
In the services area, the general rule is, the services whose provider maintains an office in
Cape Verde are taxed in the country.  Nevertheless, some services are taxed whenever they areexecuted in Cape Verde, by nationals or by foreign citizens.
The State does not pay VAT when they carry out operations in the exercise of their power of
authority.
Operations subject to VAT:
- Transmission of physical goods (including electricity, gas, water, heat and similar things);
- Import of goods; and
- Rendering of services.
Domestic operations exempt from VAT: the exem ption is not automatic. The interested party
must solicit it, otherwise the activity is taxable. The law enumerates 25 exempt operations justified by
technical reasons and by reason of economic and social polices. Some examples are:
- agricultural, forestry, livestock or fishing activities;
- educational activities;
- activities performed by show-business professionals in theatrical activities, music, circus,
sports and other, film production, etc.;
- sale of newspapers, magazines and books, considered a cultural, educational, technical or
recreative nature;
- sale of staple products;
- sale of medications, exclusively for therapeutic or prophylactic purposes;
- sale of real properties subject to Single Tax on Patrimony; real property rental, for other
than commercial, industrial and services activities;
- public garbage removal services;
- funeral and cremation enterprises;
- non-commercial public radio and television enterprises;
- public enterprises or non-profit agencies engaged in sports, recreation, conferences,
seminars, etc.; and
- public postal services, except for telecommunication.
- Taxable base
In internal operations: the tax applies to the values paid or payable.In imports: the taxable base is the value paid or payable by the importer, under the terms of
the customs regulations.
Rate: 15 per cent
The VAT rate is applicable to goods and services in internal operations and imports. The
export rate is zero.
With the implementation the law and regulation on TVA a special tax on consumption shall
be applied to specific types of merchandise, and the rate to be applied is 10 per cent on the customs
value, with the exception of automobiles for personnel transport from headings 87.02, 87.03 andWT/ACC/CPV/3
Page 21
87.04 of the Harmonized System in which case the rates to be applied depend on the vehicle's age at
the time of import:
- Up to four years old - 0 per cent;
- Up to six years old - 40 per cent;
- Up to ten years old - 100 per cent; and
- More than ten years - 150 per cent.
(e) Quantitative import restrictions
There are no quantitative import restrictions, or quotas currently in effect in Cape Verde
(Decree-Law No. 3/99). [See subparagraph II.2. (a) a nd paragraph IV.(f), under Special Requisites for
Importers of Staple Products].   Licensing procedures are discussed in paragraph (f) below.
(f) Import licensing procedures
To engage in external commerce activity, it is necessary to obtain prior authorization. The
General Directorate of Commerce and Competition has the competence to issue the prior authority,
but that competence has been delegated to the Chambers of Commerce as of 23 January 2000,
according to Dispatch 16/99, of 3 January 2002 O.B. No. 1, second Series of 3/1/00).  To obtain
authorization to engage in external commerce operato r activity, the enterprise or operator must fulfill
the following requirements:
General Requisites:
- have commercial capacity;
- not previously declaring bankruptcy or insolvency;
- not been convicted, in the last five years, for fraudulent crime against property, public
health or national economy;
- have mandatory minimum academic qualifications;
- in the case of a collective person(e.g., corporation or partnership), be registered with the
appropriate agency/ministries; and
- be in compliance with fiscal obligations.
Special requisites for importers:
- have a minimum operating capital of CVE5,000,000;
- own an adequate warehouse for the type of business and anticipated volume; and
- have an accounting system organized according to the national accounting plan under the
responsibility of an accredited accountant.
Special requisites for the exporter:
- The export and re-export operations are free and require no prior authorization.  However,
an export licence is required.  There are no special requisites beyond the generalrequisites required for external commerce.  Decree-Law No. 5/99 of 1 February – General
basis of the commerce sector juridical regime, and the Law 92/IV/93 of 15 February,
grant advantages to export and re-export of goods and services.  Exporters under AGOA
have to register with the Government department responsible for commerce when they
start exporting to the USA and deregister when they stop their activities.
Special requisites for importers of staple products:WT/ACC/CPV/3
Page 22
- According to Decree-Law 58/98 and Ministerial Ordinance 65/98 both of 28 December,
the staple foods products import activity that was exclusively done by the Public Stock
Provisioning Enterprise were excluded from the public domain.  The import of such
products is now open to private enterprises. [See subparagraph II.2 (a)].
Decree-Law No. 29/2002 of 9 December (Official Bulletin no. 35, first Series of 9 December)
alters the staple food products import regime and requires that the commercial operator:
- have prior registration to exercise the import activity;
- show proof that they have appropriate installations to store products;
- show proof that they have the capacity to distribute 30 per cent of the annual import
volume outside the Islands of Santiago and São Vicente.
Cape Verde applies three distinct licensing regimes for sectors, depending on whether the
enterprises are engaged in commerce, tourism or industrial activities. Depending on the sector ofactivity, licenses are issued by the following Government Departments:
   Commercial                          Industrial Tourism
       Government Department   Go vernment Department Government Department
   Responsible for             Responsible for                  Responsible for
      Commerce & Competition         Industry & Energy       Tourism Development
Once the above mentioned licenses are issued, their holders can operate in their specific areas.
When a licence is issued to a commercial enterprise, it can be an importer. However, a licence
issued to industrial and tourism operators is only a licence to operate.  Industrial operators may import
materials and equipment for use in their operations or projects.  Likewise, tourism operators mayimport equipment and materials for their projects. Operators in the industrial or tourism sectors are
not entitled, as such, to be general importers.
- Licensing Procedures for Commercial Enterprises
Authority for licensing has been delegated from the Government department responsible for
commerce to the Chambers of Commerce. An enterprise applies to the Chamber of Commerce andthere are no restrictions.
The main requirements are:
- To have a physical enterprise;
- To have financial capacity (CVE5 million);
- To have an adequate warehouse; and
- To have an accounting procedure in accordance with the national accounting plan.
Licensing of import activities is based on sections of the Cape Verde Customs nomenclature
(Harmonized System) in use.  Its Sections I to XXI, and the products described in them are free of
quotas. Notwithstanding, some goods listed below are subject to international trade restrictions
relating to:  the application of Security Laws and Regulations; the control of arms, ammunition and
other war equipments and military items; the protection of human, animal or plant health or life; theEnterprises Operators OperatorsWT/ACC/CPV/3
Page 23
protection of public morality; the transfer of gol d, silver and precious and semi-precious stones; the
protection of national artistic and cultural property; the control of narcotics, hazardous and toxic
waste, nuclear materials, radio-active products or any other materials used in the development or
exploitation of nuclear energy.  However, Cape Verde is not a member of some Conventions on
endangered animal and vegetable species but based on recommendations from the World CustomsOrganization; Cape Verde is entitled to apply these conventions nonetheless.
An import licence is valid for one year, and can be renewed by payment of a renewal fee.
The fee depends on the nature of the sections contained in the respective licence.  The fees collected
revert to the Chamber of Commerce.
- Licensing Procedures for Industrial Enterprises
Licensing procedures for industrial enterprises is covered in the Industrial Statues, Decree-
Law No. 108/89 of 30 December, Of ficial Bulletin No. 52 of 30 December 1989.  All industrial
enterprises must be registered at the office of the Industry Registrar's Office, located at the Ministry
responsible for Industry. Registration is made on appropriate form, properly completed by the
interested company.
Officially recorded during registration are:
- articles of Incorporation or charter of the enterprise;
- approval of the industrial facility by an inspection; and
- all updated information concerning the project.
- Licensing Procedures for Tourism Enterprises
These procedures are covered in the Tourism Utility Law, No. 42/IV/92 of 6 April.  All
persons, national or foreign, who propose to exercise tourism activity in Cape Verde, must requestauthorization to do so from the General Directorate of Tourism Development.
An automatic licensing scheme is applied to Tourism Utility enterprises for imports
(machinery, equipment, building materials, etc.) in their functional area of operation.
(g) Other border measures
None.
(h) Customs valuation
Cape Verde is not a signatory to the Customs Valuation Agreement, contained in Article VII
of the General Agreement on Tariffs and Trade (GATT).  Also, Cape Verde is neither a Member of
nor an observer to the Customs Valuation Committee of the World Customs Organization.  The
Brussels Definition of Value (BDV) serves as the basis for calculation of the customs duties and other
customs charges. For imports, Cape Verde uses the CIF value, and on exports it uses the FOB value.
In its customs valuation procedures, applying the BDV, Cape Verde Customs focuses on a
number of key elements: (1) the sale; (2) the price; (3) the time; (4) the place; (5) the quantity; and (6)
the commercial level. According to the BDV, th e customs value of imported merchandise is its
"normal value." That is, the price of those goods when a sale is made under competitive conditions
between a buyer and an independent seller. Cape Verde Customs determines the value of imported
goods as of the date of presentation of the declaration. In determining the customs value, the CustomsAuthorities take into consideration that:WT/ACC/CPV/3
Page 24
- the merchandise is delivered to the buyer at its point of entry into the country;
- the seller includes in the price all of the expenses related with the sale of the merchandise
and its delivery to the entry point; and
- the buyer is responsible for the payment of in-country duty expenses, and any other
impositions that are payable. Duties and other taxes or charges must be excluded from the"normal value."
Disputes arising from customs valuation decisions are reviewed and decided by the Customs
Technical Council, an administrative body that includes representatives of the Department for Public
Administration and the private sector.  Judicial appeals of customs valuation disputes, if made, are
made to the Fiscal and Customs Court. Further ap peal would be to the Supreme Court of Justice.
A new Code of Customs Law is being drafted. It is envisaged that the draft Code will include
the provisions on the WTO Customs Valuation.  However, for the reasons specified in Annex 4, CapeVerde will require a negotiated transition period (preferably five years) during which it will prepare
the applicable laws and regulations on the GATT valuation system. Technical assistance from
developed countries and international organizations is needed.  Also, training of customs officials
dealing with valuation would be needed as well as  assistance in drafting the implementing regulations
and the Interpretative Notes.
Cape Verde has not yet adhered to the Kyoto Convention or the Istanbul Convention, but its
customs legislation is based on them.
Cape Verde applies also a reference price and minimum taxable price to some imported goods
[Decree-Law No. 32/95 of 5 June, Official Bulletin No. 18, first Series, of 5 June 1995, and
Regulamentary Decree No. 2/2002 of 12 August, Offici al Bulletin No. 24, first Series of 12 August].
(i) Other customs formalities
Except for limited cases, namely objects for personal use belonging to passengers and returns
to family members not of a commercial character and of a value smaller than CVE50,000 that are the
object of a simplified declaration, all the imported or exported merchandise must be submitted to a
detailed declaration.
This declaration must detail certain essential elements, namely: the merchandise designation;
tariff type; country of origin; country of exportat ion; freight; destination; characteristics (weight,
length, surface, number, etc.); and, value.
With respect to imports, the declaration must be accompanied by the following documents:
- Single Administrative Document (SAD);
- Certificate of origin;
- Declaration of Import (approved by the Gene ral Directorate of Commerce when the value
of the merchandise is greater than CVE100,000 or the equivalent to 1,000 EURO);
- Commercial invoice;
- Air freight letter (when the merchandise is transported by air);
- Ocean bill of lading (when merchandise is transported by ship);
- Phytosanitary certificate (for vegetable products);
- Sanitary certificate (for animal products);
- Industrial tax note;
- Insurance certificate; and
- Certificate of payment for services rendered.WT/ACC/CPV/3
Page 25
After delivery of the declaration, a number of administrative actions are initiated, to confirm
that nothing should block acceptance of the declaration.  Such operations depend specifically on the
competences of the customs installations, the capacity of the declarer to dispatch, the form requisites
pertaining to the declaration, the declared elements.  It also depends on the presentation or additions
to the declaration and the documents whose delivery or presentation is mandatory.
Next there is a set of registration operations (dating and numbering) and the declaration's
checking for validation, which constitutes one of the first phases of the process for products customs
clearance.  Afterwards, the declaration amended or not is submitted to the verification and re-
verification of its conformity, in which case the results will serve to ascertain the correctness of the
customs formalities followed, and the assessment and payment of duties and taxes due.  From this
point, the merchandise is authorized to exit customs.
All the custom's regimes instituted by the Customs Cooperation Council, and subsequently by
the World Customs Organization, are applied in Cape Verde, namely the following:
Through legal provisions, the exemptions are directed at encouraging economic activities in
specific productive sectors (industry, fisheries, agriculture, tourism, transportation and
communications), national infrastructures (ports, air ports and roads), and certain agencies and persons
that are predominantly importers (the State, the Diplomatic Corps, International Organizations,Benevolent Institutions, Gifts, Aides, Travellers, Emigrants returning definitively, etc.).
- Customs bonded Warehouses
The customs bonded warehouses regime allows merchandise to be stored in a specific
location under Customs control with the customs duties and taxes pending from payment's moment
and imported goods entitled to special measures of economic policy.
There are two warehouses categories: the storage warehouses for commercial needs and the
industrial warehouses for industrial needs.
In the storage warehouses there are:
- The public warehouses to respond to general needs;
- The private warehouses granted to a physical or moral person, for specific needs;
- The public warehouse is granted, by order of priority, to the port or airport authorities, to
the transport enterprises, to the public entities, the chambers of commerce and industry,
and to the commercial associations; and
- The industrial warehouse is private.
- Franc enterprises
The franc enterprises are enterprises created to produce and trade in goods and services
exclusively for export.
There are two categories of franc enterprises:
- To render services; and
- To produce goods.
The production franc enterprise operates as an industrial warehouse.  The Minister
responsible for Finance may authorize a franc enterprise to sell in the local market 15 per cent of itsprevious year production.WT/ACC/CPV/3
Page 26
- Temporary admission
There are two categories:
- Temporary admission of goods for re-export, unchanged; and
- Temporary admission of goods for active improvement.
- Temporary export
There are two categories:
- Temporary export of goods for re-import, unchanged; and
- Temporary export for passive improvement.
(j) Pre-shipment inspection
Cape Verde does not utilise pre-shipment inspection. But Cape Verdean Customs usually
checks the origin of exported goods that may be elig ible for preferential treatment at their destination
(k) Application of internal taxes on imports
As discussed in paragraph 1(b) above, there are eight basic internal taxes applicable to
imports into Cape Verde. As stated previously, this group of taxes will be eliminated upon
implementation of the Value Added Tax (VAT) scheduled for January 2004.
Consumption Tax – an internal tax applied to certain imported products, at the point of
importation, as well as certain domestically produced products as they exit the factory.  The basis ofthe consumption tax is the (CIF) value plus the customs duties and general emolument tax.   The
applicable rates are 10 per cent, 20 per cent, 30 per cent and 60 per cent.  Some products are exempt
from the ad valorem  rate, and a specific rate is applied to the physical unit of the merchandise
charged:
- special oils (White Spirit and others) CVE1 per kilogram;
- gasoline CVE13 per kilogram;
- beer CVE30 per litre; and
- cigarettes CVE20 per pack of 20.
Note: CVE110.265 = 1 Euro.
General Emolument Tax  – a tax applied to the CIF value of imported merchandise to cover
administrative  charges.  The amount of this tax is 9 per cent.
Special Tax on Consumption – a tax is levied on alcoholic beverages and tobacco to support
health care and sports projects.  Specific rates are applied on the physical unit of the merchandise, as
follows:
- beer CVE5 per litre;
- wine CVE10 per litre;
- spirits beverage CVE50 per litre;
- cigarettes CVE5 per pack of 20;
- cigarillos and cigars CVE40 per each 20 units or fraction; and
- tobacco for pipe CVE200 per Kg.WT/ACC/CPV/3
Page 27
Community Levy – a 0.5 per cent ad-valorem  tax applied to non-ECOWAS imports to raise
revenue for ECOWAS Institutions (the Community Levy was created by ECOWAS Protocol
A/P.1/7/96, ratified by Resolution No. 67/V/97).
Environmental Tax – a 1 per cent tax ad-valorem  tax is applied to goods imported in non-
biodegradable packages and interior wrappings.  A 10 per cent tax ad valorem  is applied to non-
biodegradable packages and interior wrappings imported for packaging purposes of goods for
domestic consumption.  The basis for this tax is the CIF value of the imported product.  The revenue
generated supports environmental projects in th e various municipalities (Decree-Law No. 128/IV/95
of 27 June).
Stamp Tax – a revenue-generating tax levied on all imports.  The rate is CVE100 for each
declaration accepted by customs or 0.4 per cent (or 0.04) of the amount of the consumption tax,
whichever is higher.
Tax for Customs Services Rendered to Customers – is 1.04 per cent ad valorem. [Ministerial
Ordinance No. 27/79]. The tax is applied on the CIF value of merchandise transported by sea.
Tax on Operation of Duty-Free Shops – a 4 per cent ad valorem  tax applied on the gross
value of the merchandise transacted in duty-free s hops.  [Ministerial Ordinance No. 14/81 of 14 May]
Special Tax on Fuel - a CVE9.5 per ton or any fraction thereof on fuel supplied to fishing
boats.
(l) Rules of origin
According to Cape Verdean Customs Law there is a general rule of origin which is applied to
countries not benefiting from preferential treatment spelled out in the Preliminary Instructions on
Customs Tariff Annexed to Decree No. 45790 of 3 July 1964. (See Annex 2)
Cape Verde is a Member of the Economic Community of West African States (ECOWAS).
All 15 ECOWAS Member states have agreed by treaty to adopt the ECOWAS common external
tariff, which is for the moment under study.  So, Cape Verde can not yet apply the ECOWAS
common external tariff.
Cape Verde does, however, follow the ECOWAS  "rules of origin".  Under the ECOWAS
Protocol on rules of origin, goods shall be accept ed as originating in Member State for purpose of
trade liberalization if:
- They have been wholly produced in accordance with the provisions of Article 5 of the
Protocol;
- They have been wholly produced in a Member State other then by any operations and
processes listed in Article IV of this Protocol or with the material from a foreign or
undetermined origin used in the process of production of goods whose CIF value does notexceed 60 per cent of the total cost of the material employed in the production or with
material of Community origin whose value must not, in any case, be less than 40 per cent
of the total cost of the material used in the process of production with the raw material of
Community origin representing in quantity at least 60 per cent of whole raw material used
in the production; or
- The goods have been produced from material of a foreign or undetermined origin and
having received in the process of production a value added of at least 35 per cent of the
ex- factory price before tax of the finished product.WT/ACC/CPV/3
Page 28
When two or more countries intervene in the production of a merchandise, the origin of this
merchandise is determined by the substantial transformation criteria.  In this case, the country of
origin is considered to be the country in which the last transformation or substantial fabrication
complement deemed to be sufficient to attribute the merchandise its essential character was
performed.
The sufficient transformation criterion is expressed by different methods of application:
- Change in nomenclature position;
- Transformation or fabrication complement, or
- Rule of ad valorem  percentage.
Cape Verde does, in fact, follow the principles set forth in the WTO Agreement on Rules of
Origin as the ECOWAS Protocol on rules of origin is in conformity with the WTO standards.
It is envisaged that the new Customs Law will contain provisions that are fully compliant with
the WTO Agreement on Rules of Origin.
(m) Anti-dumping regime
Cape Verde's anti-dumping regime is regulated by Decree-Law No. 46828 and Decree-Law
No. 46829 both of 5 January 1966 (O.B. No. 9 of 1966), modified by Decree-Law No. 578/70 of
24 November 1970 (O.B. no. 49 of 1970).
These laws must be urgently revised to comply with WTO.
(n) Countervailing duty regime
Cape Verde's countervailing regime is regulated by the same laws cited in subparagraph (l),
above.
(o) Safeguard regime
In the trade liberalization law, Decree Law No. 3/99 of 1 February 1999, a safeguard like
provision is contained in Article 3.  No cases in Cape Verde have been brought or investigated under
this provision.
It is envisaged that Cape Verde will develop a WTO compliant law for a safeguard measures
regime.
2. Export Regulation
(a) Registration requirements for engaging in exporting
Registration requirements for engaging in exports are identical to those for imports (see
Section IV.1(a) above).  Exported goods must co mply with the formalities designed to control
exchange operations, and must also comply with al l quality requirements, rules of origin or other
norms required by law or by international accord subscribed to by Cape Verde.
(b) Customs tariff nomenclature, types of duties, duty rates, weighted average of rates
The customs nomenclature for exports is the same as that adopted for imports (see section IV.
1. (b) above).WT/ACC/CPV/3
Page 29
No export duties are charged on products exported from Cape Verde.  A stamp tax in the
amount of CVE100 (110.265 = 1 Euro) is charged for each export shipment declaration.
(c) Quantitative export restrictions
As part of an export liberalization measure passed in 1987, Cape Verde no longer applies any
quantitative restrictions on exports.  (Decree-Law 151/87 of 26 December, O.B. No. 52/87 , third
Supplement).  Although not a signatory to the Washington Convention (International Convention on
Endangered Species of Flora and Fauna), Cape Verd e prohibits the exportation of endangered flora or
fauna.
(d) Export licensing procedures
For commercial enterprises, Cape Verde applie s the same licensing scheme as for imports.
An enterprise applies to the Chamber of Commerce fo r a licence to be an operator.  The requirements
are the same as specified in section IV.1 (f).
(e) Other measures
Cape Verde does not use a system of minimum export prices, nor does it participate in any
voluntary export restraints or orderly marketing arrangements.
(f) Export financing, subsidy and promotion policies
Cape Verde provides a limited number of incentives programs (not subsidies) for the
exportation or re-exportation of goods and services (see Law No. 92/IV/93 of 15 December).
There are no export financing programs nor does the country have a system of subsidies.
Cape Verde promotes its exports and re-exports through the Center for the Promotion of Tourism,
Investment and Exports (PROMEX), a government agency bounded to the Ministry responsible for
Commerce.  PROMEX's statutory competency includes: identifying national products or enterpriseswith export potential, organizing seminars and conferences on technical training, participating in trade
fairs, researching potential export markets, and supplies market data to interested entities.
(g) Export performance requirements
Cape Verde does not have export performance requirements.
(h) Import duty drawback schemes
The import duty drawback system in Cape Verde was created and is regulated by Decree Law
No. 32115 of 7 July 1942, (Official Bulletin 39/42) and applied to the total or partial reimbursement
of import duties on merchandise used in the fabrication of products that were subsequently exported.
In Cape Verde, drawback means any arrangement, including temporary duty free admission,
for the refund of all parts of the duties applicable to imported raw materials, provided that the
arrangement, expressly or in effect allows such refund of remission if goods are exported but not if
they are retained for home use.
Benefiting from this regime were olive oil, vegetable oil for human consumption, metal
sheets, and cardboard destined for the fish conservation industry.WT/ACC/CPV/3
Page 30
Although a general duty drawback scheme exists in the Cape Verde Customs Law it is no
longer in use because more favorable regimes (temporary import, Franc (Free) Zones and others) were
created and came into use.
3. Internal policies affecting foreign trade in goods
(a) Industrial policy
The Government's industrial development policy focuses on an export-led growth. One of the
objectives of the policy is to stimulate the development of a strong industrial and entrepreneurial
sector that is capable of spurring growth and creating the conditions necessary for modernization and
business competitiveness.
Enterprises properly registered in Cape Verde benefit from a number of incentive schemes.
Registered enterprises and their approved projects are entitled to exemptions of duties,
consumption taxes and general customs emoluments in the import of construction materials,machinery, equipment, instruments and utensils, cargo material and transportation, when destined for
authorized industrial projects.
Industrial enterprises benefit from a tax exemption on revenue for the first three years of their
existence.  (Decree Law No. 108/89 of 30 December, O.B. No. 52, first Series of 30 December 1989).
(b) Technical regulations and standards
Cape Verde does not have a standards or technical regulations office or capability within the
Government.  For this reasons, there are no laws or regulations in Cape Verde dealing with this
subject. Consequently, Cape Verde does not apply any technical regulations for either domestic or
imported goods (other than sanitary and phytosanitary measures discussed in Section IV. 3 (c) below).
Cape Verde would recognize products certified in other countries provided the certification
was valid and from an authorized certifying body.
Form WT/ACC/8 has been forwarded to th e Ministry of Economy, Growth and
Competitiveness. It is envisaged that ACC/8 data will be complied and available for examination at
the first Working Party meeting on Cape Verde accession.
Currently there are no plans to implement technical regulations and standards in the
foreseeable future. However, since Cape Verde has no government office or capability to handle this
subject area, technical assistance would be of significant importance and help.
(c) Sanitary and phytosanitary measures
Food products imported into Cape Verde are subject to inspection by the sanitary authorities
(Article 7 of Decree-Law No. 89/92 of 16 July).  Vegetable and vegetable products require the
presentation of a phytosanitary report to the sanitary inspector.  The certificate issued by the official
services of the country of origin must certify that the merchandise was examined in detail, in whole orfrom representative samples, and that it is considered free from plagues and diseases to agricultural
products.  It must also certify that the product was shipped in accordance with the sanitary and
phytosanitary rules in effect in the importing country.
A certificate must also accompany the phytosanitary product from the manufacturer
discriminating that the living matter and other cons tituents of the commercial preparation correspond,WT/ACC/CPV/3
Page 31
with regard to its identity, quality, purity and compos ition, to the solicited product.  It also certifies
that it is in conformity with the directives of FAO's 1986 international code of conduct for the
distribution and use of phytosanitary products.
Likewise, the import of animals, foods or products of animal origin must always be
accompanied by a phytosanitary certificate issued by the sanitary veterinary services of the country oforigin.  This certificate should characterize the sanitary state of the merchandise and the epizootologic
state of the exporting country.  It must also attest that the referred merchandise fulfils the established
technical norms for the import of these products
According to the Legislative-Decree No. 9/97 the export and import of vegetables and
vegetable products such as seeds, fruits, plants, flowers are subject to sanitary control at the sea or air
port of entry open to international traffic.  These products are subject to inspection in order to look for
the presence of vegetable or animal organisms or pathogenic agents harmful or potentially harmful tovegetables and/or vegetable products in the national territory.  The sanitary inspector may decide to
lift samples out for laboratory examination, and, if necessary, quarantine the product.  If an inadequate
sanitary state is confirmed, the product may be submitted to decontamination or disinfecting, or it may
be returned to the country of origin.  Ministerial Decree No. 55/97 indicates the ports and airports
through which the import and export of vegetables, parts of vegetables and vegetable products maytake place.  The control points are in the depend ence of the Vegetable Protection Services of the
Agriculture Directorate.
Also in harmony with Decree-Law No. 26/97, wh ich regulates the import, commercialization
and use of sanitary and phytosanitary products, the imported products must be included in Cape
Verde's list of approved products.  They must also be transported in their original packages and thepackages must be inviolate.  On arrival, the sanitary and phytosanitary inspector must first verify that
these products conform to the import authorization.  When the products do not conform to the import
authorization, the inspector of sanitary and phyto sanitary products may order their return to the
country of origin, within the deadline established by the Directorate of Agriculture, Forestry and
Livestock.
The Decree-Law No. 62/89 authorizes the government to take all the measures necessary to
prevent the propagation, appearance, and eradication of the most dangerous zoonosis to human
beings, as well as diseases considered grave for livestock.  To facilitate the control, the import of
animals, food and products of animal origin can be affected only through the entry points established
by the Central Veterinary authority.  Immediately upon arrival in the national territory, the Official
Veterinary Doctor will perform sanitary control on them.  A pre-proposal project of diplomas relative
to livestock is in pre-approval discussion.  This diploma will replace the decree-law No. 62/89.
(d) Trade-related investment measures
Cape Verde has no trade-related investment measures dealing with currency or trade
balancing requirements. Further, there are no local content requirements on production as a condition
of investment or trade. Thus, Cape Verde does not have any trade-related investment measures.
(e) State trading practices
Shortly after independence Cape Verde relied on State control to meet its economic
objectives, and the Government created a number of State enterprises.  Since 1990, the emphasis has
shifted to private-sector led growth, and the Government has privatized approximately 21 State
enterprises.  The sole remaining State enterprise in Cape Verde (within the meaning of Article XVII)
is EMPROFAC, an entity created to import and distribute pharmaceuticals to ensure universal accessto basic medicines (for further details see Annex 6).WT/ACC/CPV/3
Page 32
(f) Free zones
In 1998, Cape Verde approved a law authorizing the establishment of commercial free zones,
defined as a duty free import and export area (Law No. 83/V/98 of 21 December).  Cape Verde
recently opened a Commercial Franc (Free) Zone in São Vicente (approved by Decree-Law
No. 3/2001), which is managed by the Comm ercial Free Zone of Cape Verde, SA.3
In addition to commercial free zones, Cape Verde also has "free enterprises."  Any legally
established national or foreign enterprise is eligible for the status of free enterprise provided that it
produces and commercialises goods, or provides services, for export or for sale to other free
enterprises in Cape Verde.  With authorization from the Ministry of Planning, free enterprises may
sell in the local market provided the total volume of such sales does not exceed 15 per cent of the
enterprise's production in the preceding year.  Once in the local market, the products are subject to
normal taxes and other charges.
Free enterprises benefit from special incentives under Law No. 99/IV/93 of 31 December,
which include fiscal and customs incentives.
Fiscal incentives:
- total exemption for ten years from payment of all taxes, including taxes on profits and
dividends distributed to shareholders; after ten years, those taxes shall not exceed15 per cent of profits;
- total exemption from indirect taxes such as, for example, the stamp tax;
- exemptions from notary and registration fees;
- exemptions from declarations of realization of stock capital; and
- possibility of contracting foreign workers under applicable law.
Customs incentives:
- exemption from duties, general emoluments, and consumption taxes for certain products
imported for the free enterprise's own use.  Those products include:
- construction materials, including metal structures for the expansion and/ or
renovation of their installations;
- machines, equipment, instruments, furniture and utensils, accessories and separate
pieces;
- cargo and merchandise transportation material for the exclusive use of the
concessionaire or the operator for the development of its activities;
- fuel and lubricants (with the exception of gasoline);
- suspension of customs regime for the import of raw materials and subsidiaries and
finished and semi-finished products for the enterprise's production; and
- exemption of customs duties in the export of products fabricated or re-exported by the
enterprise.
In order to be designated as a free enterprise, the entity must apply to the Ministry of Planning
through PROMEX.  The following elements  must be included in the application:
- letter of request addressed to the ministry responsible for Planning;
- descriptive summary of the investment project;
                                                     
3 Commercial Free Zone of Cape Verde, SA (FIC) is an enterprise established under Decree-Law
No. 18/2000 that manages São Vicente's commercial free zone.WT/ACC/CPV/3
Page 33
- the form in attachment 1 to the law of franc enterprises duly filled out;
- proposed location;
- identification and curriculum vitae of the promoters;
- financial capacity of the promoters;
- environmental impact study, should the proposed activity require it; and
- the enterprise's statute and/or registration, with express reference in its object that its
production and or commercialization of goods and services will be destined exclusively
for export.
In the event of a favorable decision, PROMEX issues a certificate of franc (free) enterprise in
accordance with the provisions of Annex 2 of Law No. 99/IV/93.
(g) Free economic zones
There are no free economic zones in Cape Verde.
(h) Trade-related environmental policies
Cape Verde applies an Environmental Tax on all imports that are not packaged in
biodegradable material. The purpose of the tax is to protect Cape Verde's environment.  The tax is
applied on an ad valorem  basis at a rate of 1 per cent to goods imported in non-biodegradable
packages and interior wrappings.  A 10 per cent tax ad-valorem is applied to non-biodegradablepackages and interior wrappings imported for packing purposes of goods for domestic consumption.
The basis for this tax is the CIF value of the imported merchandise.  (Law No. 128/IV/95 of 27 June).
At present, there is no domestic production of non-biodegradable materials in Cape Verde.  If
domestic production of non-biodegradable materials should start, the issue of Article III (national
treatment) will be taken into consideration.
(i) Mixing regulations
None.
(j) Government-mandated counter-trade and barter
Cape Verde does not have government mandated counter-trade or barter.
(k) Trade agreements leading to country-specific quotas allocation
Cape Verde is not a signatory to any trade agreements requiring country-specific quota
allocations.
(l) Government procurement practices
Cape Verde's government procurement practices, including its general legal regime, are
embodied in Decree-Law No. 2/97 of 21 January.  Purs uant to that law, the Directorate General for
State Property oversees the purchase of goods and services for all government departments (see
section VI.2 (h) for further details).
Tendering procedures for public works projects are regulated by Decree-Law No. 31/94 of
2 May (published in O.B. No. 17, first Series).  Generally, construction contracts are awarded only
after a public bidding process has taken place (except in extraordinary cases where the law allows the
competent authority to directly select a supplier without bid).  The project owner (implicated ministryWT/ACC/CPV/3
Page 34
or municipality) prepares a bid program and a "ter ms of responsibilities document," which must be
made available to interested parties from the date a request for bid is published.  The "terms of
responsibilities" document details the legal clauses, technical, general, and special requirements
applicable to the project.  The project owner convenes a commission of three members to review
proposals and grant the award.  The award is granted to the most advantageous proposal, taking intoaccount several factors, including price, timetable, utilisation costs, profitability, technical value,
guarantees of good and punctual execution of the project, and other factors of special interest to the
general public.
(m) Regulation of trade in transit
The Preliminary Instructions to Cape Verde Customs Tariff regulates the trade in-transit.
Apart from the trade in transit within Cape Verde Cu stoms territory, transit involving more than one
Customs territory coming and going by sea or air is insignificant or null.  However it is envisaged thatthe Cape Verde Customs Law currently being drafted will include new basic WTO rules concerning
regulation of trade in transit.
4. Policies affecting foreign trade in agricultural products
Given the adverse climate conditions, Cape Verde's agricultural production is limited.  The
first arrivals to Cape Verde left written testimony attesting to the abundant vegetation available on theislands, but since that time the effects of human activity on the islands' natural habitat has meant that
the indigenous vegetation suffered a dramatic alteration over the course of the last five hundred years.
Over this period of time, fields of crops were cultivated and the natural watercourses diverted to
irrigate them, and new plants brought from the most  diverse parts of the world were introduced, along
with livestock.  Because of the cutting down of trees and shrubs for use as wood, and grazing –
especially by goats – deforestation took place at such a rate that the natural vegetation could not
recover.
Since independence, however, considerable efforts have been made to retain soil, particularly
by building dikes and by repopulating many slopes with trees.  A public campaign is also being
carried out to make the inhabitants of the archipelago more aware of the need to protect and nurturenative plant species, some of which are now quite rare in Cape Verde.
Despite these  efforts, Cape Verde's internal agricultural production remains insufficient to
meet the needs of the population.  The country continues to depend on agricultural imports,
principally grains (wheat, corn and rice), to make up the shortfall.  A large part of cereals import
comes in the form of food assistance.  According to estimates from the government department
responsible for Food Security, from 1998 to 2000, the assistance in grains covered about 50 per cent
to 66 per cent of the population's consumption needs.
The agricultural sector does play an importa nt role in the country's economy, contributing
11 per cent or approximately CVE1,643 million to the GNP and employing nearly 20 per cent of the
labour force –about 28,100 people (source:  National Institute of Statistics and Census 2000).  The
State's intervention in the agricultural sector is minimal, consisting essentially in public services of a
general character, namely interventions that seek to  preserve natural resources, promote conditions to
favor the sector's modernization, favor the development of private initiative.  It also promotes the
creation of institutional conditions that facilitate the economic activities in the sector.  As a way of
supporting internal production, the State facilitates the import of agricultural production factors,
namely by the exemption of customs duties and taxes in the import of such merchandise.WT/ACC/CPV/3
Page 35
(a) Imports
As mentioned in 3 (c) above, Cape Verde maintains a system of sanitary and phytosanitary
controls.
Periodically, the government department responsible for Agricultural, Forestry and Livestock
may establish a list of prohibitions and restrictions in the import of vegetables, vegetable products andproducts that are harmful to life, as well as products that are or may be carriers of things harmful to
health.
Alternatively, a list of authorized product is included in the Commercial Protocol with the
Republic of Guinea-Bissau and the Sanitary and Phytosanitary Accord with the Republic of Senegal
(Decree No. 4/96 of 17 June 1996, O.B. No. 18/96) and Decree No. 7/98 of 5 October, O.B. No.
37/98).  Likewise, the Government may, by absolute or relative prohibition, interdict or limit the
import of animals, foods or products of animal origin for sanitary, phytosanitary and public healthreasons.
Form WT/ACC/4 has been forwarded to the mini stry responsible for agriculture and fisheries.
It is envisaged that ACC/4 data will be complied and available for examination at the first Working
Party meeting on Cape Verde accession.
(b) Exports
Agricultural exports, mainly animal skins, are insignificant and represent less that 2 per cent
of the country's total exports (approximately US$240,000).
There are no export subsidy measures in place in Cape Verde.
(c) Export prohibitions and restrictions
There are measures to protect human, animal or plant health or life, and the environment and
endangered species of animals and plants.
(d) Export credits, export credit gu arantees or insurance programmes
The Government of Cape Verde does not provide any export credits, credit guarantees or
insurance programs.
(e) Internal policies
The Government of Cape Verde has invested on average CVE800 million annually in the
development of its agricultural sector. The funds are used for research, information dissemination,
preservation of natural resources, and similar activities.WT/ACC/CPV/3
Page 36
Table 10
Public Investment in the Agricultural Sector (millions of CVE)
Year Amount
1997 804,607
1998 837,398
1999 849,884
2000 n/a*
2001 748,464
*Note:  Data on year 2000 investments are not available
Source:  GEP/MAP
5. Policies affecting foreign trade in other sectors
Cape Verde was recently certified as eligible for the apparel benefits under the African
Growth and Opportunity Act, which allow preferential access for textile exports to the United States(Decree-Law No. 17/2002). Likewise, it became eligible for quota-free and duty-free access to
Canadian market under the memorandum of understanding on Least Developed Countries New
Initiative signed on 25 April 2003.  Within the framework of ACP-EC Cotonou's Partnership
Agreement of 2000 products of Cape Verde origin can accede to preferential treatment in the
European Union market. At national level, there are also fiscal facilities.
(a) Textiles regime
Trade in textiles is of growing importance to Cape Verde.  In 2001, it represented
approximately 50 per cent of the total valu e of national exports (source: INE 2001).
(b) Policies affecting foreign trade in other major sectors
The products below benefit among others from fiscal incentives.
- Footwear
Trade in footwear represents the second major export product.  The European Union and the
United States are the principal export markets, representing about US$5 million or 42 per cent of the
total value of exports in 2001 (source: INE 2001).
- Fish products
Fish products represent 3 per cent by weight or about 234 tons of national exports in 2001,
having as its principal destination the European Union.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
The Government has defined the creation of a national system of industrial property
protection as one of the most important measures necessary to the promotion of profitable enterprises.
The function of this system is not only to guarantee to national and foreign enterprises their rights
regarding the issuance of certificates, registration of trademarks, patents, and industrial designs, butWT/ACC/CPV/3
Page 37
also to prepare Cape Verde for the process of accession to the Paris Convention and other treaties.
The accession of Cape Verde to international organizations, notably the World Intellectual Property
Organization and the African Industrial Property Or ganization (AIPO), among others, merits special
attention.  The Government's policy regarding copyright and related rights aims to stimulate and
promote the creation and production of intellectual work in the domains of literature, arts, andscience.
It is important to note that Cape Verde is in the initial stages of promulgating its own law on
industrial property; a draft text is being prepared, and Cape Verde intends to solicit technical
assistance from relevant sources, including the World Intellectual Property Organization.  The
controlling legal provision in this domain remains the 1959 Industrial Property Code (published in the
supplement to the Official Bulletin No. 19 of 14 May 1959), which has not been applied in Cape
Verde since independence.
Cape Verde adhered to the WIPO Convention by Resolution No. 11/V/96 of 11 June 1996;
the Paris Act on Berne Convention for the Protection of Literary and Artistic Works by Resolution
No. 12/V/96 of 11 June 1996; and to the International Convention for the Protection of Artists,
Interpreters, Performers and, of Phonograms Producers and Radio Broadcasters by Resolution No.
13/V/96, of 11 June 1996.
(b) Responsible agencies for policy formulation and implementation
- Industrial Property
The government department responsible for energy and industry's proposes and implements
government policy on industrial property matters as established in articles 15 (e) and 17 (1) of
Decree-Law No. 31/2001 of 26 November  (O.B. No. 39, I Series).  According to that law,
government department responsible for energy and industry competencies include:
- supporting the Government in negotiations before international organizations related to
industrial property matters, principally the World Intellectual Property Organization  and
WTO;
- guaranteeing the registration, attribution, and protection of industrial property rights, and
ensuring compliance with applicable legislation.
It is important to point out that because of the non-application of the Industrial Property Code
post-independence, there have been no registrations of trademarks, geographic indications, industrial
designs or patents.  The service that will assure the registration, attribution, and protection of
industrial property rights is now being created.  There have been some requests for registration of
industrial property, particularly requests for registration of trademarks.  In the absence of such a
service, the owners of these marks have published notices in the national newspapers.
- Copyright and related rights
In 2001, Cape Verde created the National Institute for Research, Promotion and Cultural
Heritage (INIPC), a government agency bounded to the Ministry responsible for Culture, and
transferred to it responsibilities formerly managed by several different government departments.4
INIPC currently is responsible for, among other things, ensuring Cape Verde's compliance with
legislation pertaining to copyright and related rights.
                                                     
4 Article 6 of Decree-Law No. 25/2001 of 5 November (reconfiguration of the institutes) dissolved the
Institute of Cultural Promotion and the Institute of Cultural Research, and the functions of those agencies were
transferred to the newly created National Institut e of Research, Cultural Promotion and Patrimony.WT/ACC/CPV/3
Page 38
Decree-Law No. 10/2002 of 25 Ma rch, and Decree-Law No. 8/2002 of 2 April, creates the
Ministry of Culture and grants to it the following functions:
- propose, coordinate, and execute policies pertaining to culture;
- coordinate policy on matters of archeological sub-aquatic patrimony and archeological
oceanographic research, as well as conservation and restoration of public property (inconjunction with Ministry of Infrastructures); and
- manage assistance programs with the United Nations Organization for Education,
Science, and Culture, and other international organizations specialized in culture (in
coordination with Ministry of Foreign Affairs, Cooperation, and Communities).
The ministry responsible for culture oversees several institutions, including:  the National
Institute for Research, Promotion and Cultural Heritage, the National Historical Archive, the National
Library, and the National Council on Culture.
(c) Membership of international intellectual property conventions and of regional or
bilateral agreements
Cape Verde has been a member of WIPO since 1 July 1997, and has actively participated in
WIPO activities, particularly regional seminars  organized for the Community of Countries with
Portuguese as the Official Language.
While Cape Verde is not a party to any regional or bilateral agreement on industrial property,
it has developed a cooperation relationship with Portugal's National Institute of Industrial Property in
both training and technical assistance activities.
With respect to copyright and related rights, Cape Verde became a member of the Rome
Convention and the Berne Convention in July 1997.
(d) Application of national and m.f.n. treatment to foreign nationals
Article 3 of the Industrial Property Code authorizes equal treatment to all persons,
independent of domicile or residence, except for special disposition of competence and process.
Relative to any other foreign national, according to the referred Article : the provisions of the
conventions between Cape Verde and the respective countries shall be observed.  In the absence ofsuch conventions, the reciprocity regime applies.
The new legislation on Industrial Property currently being drafted foresees equal rights for all
beneficiaries, being national born citizens or foreigners. This principle will be reconfirmed on Cape
Verde's accession to the Paris Convention, which process is on course at the ministry responsible for
foreign affairs.
With respect to copyright and related rights, Cape Verde law does not permit discriminatory
treatment on the basis of the copyright holder's nationality, nor does it permit special treatment to thecitizens of any particular country.
(e) Fees and taxes
Fees and taxes on industrial property are quite low because the charges set in the Annex to the
1959 Industrial Property Code (Official Bulletin No. 19 of 14 May 1959) remain in effect.  The
Government is aware of the need to update applicable fees and taxes in this domain (there arecurrently no fees or taxes applied with respect to copyright and related rights), and it intends to
implement a new law.  The new decree law has been approved by the Council of Ministers, and willWT/ACC/CPV/3
Page 39
be soon published in the Official Bulletin of Cape Verde.  Its effect implies the application of the
taxes and fees stated below.
Table 11
Taxes and Fees Applicable to Industrial Property
Proposal No. 3 – Revised by the Coun cil of Ministers on 30 December 2002
(Annex to Decree – No. 30.679 of  24 August 1940)
DescriptionActual Fees
(1940)
(CVE)Proposed Fees
(CVE)
PATENTS
Form of Application 30 12,000
Annuities 50*2,5000
Surcharge: payment due for 60 days 25*4,000
Sum 50 2,400
Registration of Assignment or Exploitation of Licence 100 6,000
Revalidation 150*7,000
DEPOSIT OF UTILITY MODELS
Form of Application 20 10,000
First 15 year period 40 2,500
Second 15 year period 80 3,000
Third 15 year period 160 4,000
Fourth 15 year period 320 4,000
Fifth 15 year period (following) 640 4,000
REGISTRATION OF ASSIGNMENT OR LICENCE OF UTILITY MODELS
Form of Application 75 6,500
First 15 year period 150 6,500
Second 15 year period 300 6,500
Third 15 year period 600 6,500
Fourth 15 year period 1,200 6,500
Fifth 15 year period  90 6,500
Surcharge for renewal within 60 days –50% tax due for 15 years Revalidation – triple tax due for 15 years
DEPOSIT OF INDUSTRIAL DESIGNS
Form of Application** 20 8,000
First 15 years (per type) 30 2,000
Renewals 50 2,500
Registration of Assignment or Licence 50 6,500
Surcharge for renewal for 60 days 15 3,000
Revalidation's 90 6,000
NATIONAL TRADEMARK REGISTRATION
Form of Application** 50 6,500
Registration per type of 5 products 100 7,000
Renewals 200 4,200
Registration of Assignment or Alteration of the title holder identification 200 6,500
Surcharge for renewal within 60 days 50 5,000
Revalidation's 300 8,000
TYPES OF TRADEMARKS
Form of Application 50 2,000
Registration 150 6,000
Renewals 300 8,000
Registration of Assignment 350 8,500
Surcharge 75 3,000WT/ACC/CPV/3
Page 40
DescriptionActual Fees
(1940)
(CVE)Proposed Fees
(CVE)
Revalidation's 450 9,500
CRAFTSMAN TRADEMARKS
Form of Application (per class ) 10 4,500
Registration and its renewals 20 5,000
Revalidation's 60 6,500
INTERNATIONAL TRADEMARKS REGISTRATION
Registration 250 8,000
Registration of Assignment 200 7,000
REGISTRATION OF AWARDS
Form of Application 50 5,000
Registration 50 6,000
Registration of Assignment 40 4,000
REGISTRATION OF NAMES AND INSIGNIAS
Form of Application 100 4,000
Registration 200 17,500
Registration of Assignment 200 8,000
Surcharge: payment due for 60 days 100 20,000
Revalidation's 6,200 25,000
REGISTRATION OF DENOMINATIONS OF ORIGIN
Form of Application 50 4,500
Registration 100 7,500
OTHER FEES
Certificates of Patents, deposit or registration 50 3,000
Titles 10 2,500
Searches:
per yearcomputerized data unavailable
computerized data available
minimum4
10 8,000
1,500
2,500
Certificates or authentic copies:  per page 6 1,500
Submission of applications:  per application submitted 5 500
Registration of Assignment of alterations of the company name, corporatestyles or other elements of identity of the title holder:name or insignia of the establishmentother categories200
1008,000
1,500
Notice of public disclosure:per applicationobjections (per word)
drawings (per line)5
  0.10
13,000
50
500
*20 per cent increase per year (following)
**Includes submission of application, the application itself and the examination fee
2. Substantive standards of protection
(a) Copyright and related rights
Title III, articles  87-94 of Law No. 101/III/90 of 29 December, defines and regulates
copyright matters.  The law encompasses all aspects and parameters defined by international
conventions regarding copyright and related rights issues.  In general, copyright holders, in the areas
of literature, arts or science, are guaranteed legal protection against any type of unauthorised use.
Property rights are inalienable, and Cape Verde law provides that "the protection of an artist'sWT/ACC/CPV/3
Page 41
interpretation or execution continues for a period of forty years, counting from the first day of the year
in which the event that generates the protection occurred".
(b) Trademarks
The registration process and protection mechanisms for marks are covered in the Industrial
Property Code (Chapter III, section II, articles 86 and 103 (national registration and international
registration respectively)).  According to the C ode, whoever adopts a certain mark to distinguish
his/her business product shall be entitled to the exclusive use of the mark for as long as s/he complies
with all legal requirements, particularly with respect to registration.
A person seeking to register a mark must apply to the government department responsible for
industry.  The application consists of a required form (to be completed in Portuguese), and it must be
accompanied by the elements indicated in Article 87 of the Code.  After the application is presented, a
notice shall be published in the Industrial Property Bulletin to allow for complaints from whoevermight be injured if the application were granted.  The deadline to present any complaints is ninety
days from the date the notice is published in the Industrial Property Bulletin.
Once the deadline for complaints has lapsed, the department of industry shall proceed to
examine the application, which consists principally in comparing the mark submitted for registration
against already-registered marks.  Upon completion of the examination process, the results aredocumented and the application is processed.
(c) Geographical indications
Geographical indications are not included in the Industrial Property Code; however
denominations of origin are covered in Chapter VI, Article 165.  The protection of origin
denominations is guaranteed to registered titleholders under the terms of the Industrial Property Code.
(d) Industrial designs
The process of registration and protection of industrial designs is covered in Chapter II,
sections I to IV of the Industrial Property Code.  The request to deposit industrial designs must be
made in an application, and it must be accompanied by the elements indicated in Article 54 of the
Code. After the application is legally presented, a notice shall be published in the Industrial Property
Bulletin indicating the objective, utility and novelty of the industrial design for which deposit is
requested.  This will allow for complaints from those who potentially could be injured from the
granting of a deposit.  The deadline to present any complaints is ninety days from the date of
publication in the Industrial Property Bulletin.  Once the deadline has expired, if there are no
complaints, the request shall be properly studied, documented, and processed.
(e) Patents
The procedures to register and protect patents are covered in Chapter I, sections II to IV of the
Industrial Property Code.  The request for a patent must be made in an application, which must be
accompanied by the elements indicated in Article 15 of the Code.  At the request of the inventor or
his/her legal representative, a certificate of presentation of patent request is issued.  After the patent
request is delivered, a notice is published in the Industrial Property Bulletin with the transcript of the
claims in order to allow for complaints from those who potentially could be injured by the eventualconcession of the patent.  The deadline for the presentation of complaints is ninety days from the date
of publication in the Industrial Property Bulletin that contains the notice.  After the deadline has
lapsed without any complaints being received, the government department responsible for industry
shall proceed to examine and process the request.WT/ACC/CPV/3
Page 42
(f) Plant variety protection
The Industrial Property Code makes no reference to this subject.
(g) Layout designs of integrated circuits
The Industrial Property Code makes no reference to this subject.
(h) Requirements on undisclosed information
The Industrial Property Code does not include aspects relating to trade secrets or test data;
such protection is assured through the general rules of the Penal Code.
(i) Any other categories of intellectual property.
The Industrial Property Code additionally covers the following categories of industrial property:
- utility models – Chapter II, Article 37;
- rewards – Chapter IV, section I, Article 127; and
- name and insignias of establishments – Chapter V, section I.
3. Measures to control use of intellectual property rights
- Industrial property
These measures are addressed in Title III of the Industrial Property Code, entitled "Offences
against Industrial Property".  For example, Article 211 of the Code states: "industrial property rights
are guaranteed by law for property in general, and shall be especially protected under the terms of thepresent diploma and additional laws and conventions in effect".  Article 213 of the Code states
categorically that:  "any act of unfair compet ition shall be penalized by a fine of CVE100 to
CVE10,000 under current legislation, which may be aggravated by a prison term of 15 days to six
months."
- Copyright and related rights
These measures are regulated in Article 4 (violation and defense of rights), and Articles 95 to
103 of Law No. 101/III/90 of 29 December 1990.  The law protects both cultural patrimony and moral
rights.  In the case of violations of cultural patrimony, the law protects against wrongful seizure and
counterfeit by foreseeing penalties of up to a one-year prison term and a doubling of fines in the case
of recurrence.  Simple negligence is punishable by a fine of up to CVE100,000.  On the other hand,the copyright holder may request that a court seize the samples of the work usurped or counterfeited,
whatever the form of the work.
As related to violations of moral rights, the law foresees that the above-referred fines will be
levied against any person who:
- fraudulently makes use of someone else's works in the domains of literature, arts or
science; and
- makes an attempt against the authenticity and the integrity of a work of literature, arts or
science.WT/ACC/CPV/3
Page 43
4. Enforcement
(a) Civil judicial procedures and remedies
The copyright law states that the civil responsibility emerging from the violation of the rights
foreseen in the law is not dependent on the criminal procedures of its cause, so the proceedings in
such cases are applicable through separate civil and penal actions.  In cases of violations ofpatrimonial and moral rights, the copyright laws authorize the apprehension of the usurped or
counterfeited work and apply fines and imprisonment to the usurper or counterfeiter for up to one
year.
(b) Provisional measures
The present law of industrial property includes all the warranties established to all properties
in general and to industrial property in particular.  The present law foresees repression measures
against unfair competition and other acts that can generate conflicts with the establishment, products,services, or the reputation of the competitors.  The illicit appropriation of, usage or diffusion of
industrial secrets, trade secrets from others constitute an offence against the industrial property and
are punishable under the terms of the law in effect.
However, the punitive measures foreseen in the present Code, due to its insignificant nature
(low amount of fines) are found not to further the ob jective of preventing crimes against the industrial
property.  Thus, its application at present is not effective and does not discourage illicit practices of
industrial property rights.  The proposal of the new Code currently under approval foresees repressive
measures against crimes of industrial property duly adapted to the country context.
(c) Any administrative procedures and remedies
In view of the non-functioning of industrial property service sector in Cape Verde,
administrative procedures and remedies have not been applied. However, this principle is assured
through the central services of protection of private property through the application of the Penal
Code by the Courts.  The new law on Industrial Property will foresee all relating aspects.
(d) Any special border measures
The Industrial Property Code does not foresee any special border measures to prevent entry
into the local market of any counterfeit products or products that violate the principles of industrial
property protection.  Training or counselling work with  the customs service will be necessary in order
to identify any legal dispositions that might arise in this area.
The copyright law allows for the imposition of the penalties against anyone who imports, sells
(or puts up for sale by any means) or distributes to the public any copied or counterfeited work,
whether the product was produced in the country or abroad (see section 3 above for applicable
penalties).
(e) Criminal procedures
- Industrial property
See section 4(b) above.WT/ACC/CPV/3
Page 44
- Copyright and related rights
The counterfeiting or copying of protected works are punishable crimes, thus the courts may
act with or without a formal complaint.  In the case of violations, the copyright law foresees the
seizure of any models or works that have been copied or counterfeited, as well as the imposition of
fines of more than CVE100,000.00 and a prison term of up to one year.
5. Laws, decrees, regulations and other legal acts relating to the above
- Industrial property
Decree No. 30679 of 24 August 1940, which approved the Industrial Property Code and was
implemented by Ministerial Ordinance No. 17.043 of 5 May 1959, published in the Supplement to the
O. B. No. 19 of 15 May 1959.
- Copyright and related rights
Law No. 101/III/90 of 29 Dece mber defines the rights of copyright holders.
6. Statistical data on applications for and grants of intellectual property rights, as well as
any statistical data on their enforcement
There are no statistics available due to non-application of industrial property code.
VI. TRADE-RELATED SERVICES REGIME
1. General
General description of the overall market and regulatory structures of the most prominent
services sectors (e.g., financial services, telecommunications, professional services, construction,
tourism, transportation).  A complete list of services sectors is found in document MTN.GNS/W/120,
the "Services Sectoral Classification List" (Annex 7 refers).
The services sector is one of the most important in the Cape Verde economy, and in the last
five years it constituted 65 per cent of gross domestic product (1998-2002).  The Government's
strategy for growth in this sector has been to priv atize many of the service providers and to open the
market to free and fair competition.  Foreign investment in Cape Verde's services market is an integral
part of that strategy.  Pursuant to the Fore ign Investment law (No. 89/IV/93 of 13 December),
foreigners may invest and work in nearly every service sector.
The five most significant services sectors are telecommunications, construction and
engineering, tourism and related services, transportation, and financial services.   A description of
these sectors is provided here, while Annex 7 details the range of services outlined in the "Services
Sectoral Classification List."
- Telecommunication services
The telecommunications services sector is growin g, particularly with respect to fixed network
services.  In 1996, there were 40,000 Cape Verdean subscribers to fixed telephone services, and by2002 the number had grown to 70,187.  Mobile telephone services are also experiencing a surge in
demand, and by 2002 there were 42,950 subscribers and 3,935 internet subscribers.  Cape Verde's
teledensity level is 14.2 per cent, one of the highest among countries with similar GNP.WT/ACC/CPV/3
Page 45
There is one telecommunications services supplier in the local market providing a diversity of
services, including fixed telephone, cellular, telegraph and calling card services, as well as electronic
and internet services.  Cabo Verde Telecom, S.A. (CVT) is a privately controlled enterprise owned by
Portugal Telecom International and a number of Cape Verde public and private investors.  Under a
25-year Concession Agreement with the State of  Cape Verde, CVT holds monopoly rights to the
provision of fixed network services, and the Govern ment sets the prices for those services (Decree-
Law No. 13/96 of 18 March).  Value-added services (e.g., mobile phones and internet services) are
open to all providers, and those prices are set by market forces.
Table 12
Ownership of Cabo Verde Telecom, S.A.
Portugal 
Telecom
40%
CV Airport 
Security 
Agency 
(ASA)
5%CVT and 
Post Office Employees 
(CCV)
5%
Social 
Security 
(INPS)
32.9%State of 
Cape 
Verde
3.4%Local 
Private 
Investors
13.7%
Ministry responsible for communications currently regulates all telecommunications activities
in Cape Verde.  The Government is expected to create the Institute of Communications and
Information Technologies in the near future, where upon the Institute will assume regulatory functions
in this sector.  Meanwhile the government department responsible for communications continues to be
entrusted with this task.
- Construction and related engineering services
The construction and related engineering sector prior to the 1990s was directly supported
primarily by the State.  In 1988, as part of its commitment to liberalize the economy, the Government
began to remove itself from direct intervention in the sector, and by 2000, the State's function was
limited to regulating construction activities.  A surge of construction took place throughout the
country as dozens of private civil construction enterprises entered the market.  The enterprises are
generally small – of the 66 firms in operation, only six are medium sized – but the sector employs the
most workers in Cape Verde.  Firms are dedicated almost exclusively to building construction; only
about three or four enterprises perform road construction, sanitation and airport rehabilitation projects.
There is a dearth of recent and reliable information on the construction sector, but the
Ministry of Infrastructures and Transportation is working in conjunction with the industry association
to collect information and create a database.  The Government conducted an industry census in 1997,out of which much of the information provided below was obtained.WT/ACC/CPV/3
Page 46
Table 13
Overview of Cape Verde's Construction Sector
Employment Approximately 18,000 (11% of total employment)
Investment Approximately CVE5 billion (8% of GNP)
Contribution to GNP 12%
Number of enterprises 37
Authorized operators Approximately 60
Total number of workers 1916
Business volume CVE3.602 billion
Cement consumption About 160 tons (3,200,000 sacs, 350 kg/inhabitant)
Construction licenses/year Approximately 1,700 in São Vicente and 3,000 in  Praia  
The Public and Private Works Enterprise Licensing Commission (CAEOPP), a government
agency within the Ministry of Infrastructures and Transportation, is the umbrella organization thatregulates construction activity in Cape Verde.  CAEOPP issues required licenses and coordinates
policy.  Within the CAEOPP umbrella are a number of diverse government departments:  the General
Directorate of Infrastructures and Transport, the Public and Private Works General Inspector
(IGOPP), and the Civil Engineering Lab of Cape Verde.  The construction firms have their own
association, the Cape Verdean Public and Private Works Contractors Association, which representstheir interests to the Government.
The most significant law in this sector is Decree-Law No. 31/94 of 2 May, which regulates
construction activities.  Pursuant to that decree, foreign enterprises that establish an office in-country
are permitted full access to the construction market subject to the same laws and regulations as local
enterprises.
- Tourism and travel related services
Tourism is one of the most important service sectors in Cape Verde, contributing 7.3 per cent
and 9.5  per cent of GNP in 2000 and 2001 respectively.  Revenues in this sector in 2001 increased
39.5 per cent and contributed 41.1 per cent to Cape Verde's services exports.  The services offered are
diverse, including hotel and restaurant, travel agency, tour guide, transportation, andsports/sightseeing.  There are approximately 30 travel and tourism agencies, 89 hotels and guest
residences, and 63 tour guides.
In recent years the Government has encouraged the development of Cape Verde's tourism industry,
but there are a number of constraints on growth.  One of the most significant impediments is the
limited availability and high cost of energy, fuel, and potable water.  Tourism enterprises must alsoconfront a limited market, an underdeveloped inter-island transportation network, and a labour force
in need of extensive professional training.
Table 14
Evolution of Cape Verde's Touris m Sector – Principle Indicators
1999 2000 2001
Revenue from Tourism, in millions of CVE 2,900.9 4,686.4 6,539.1
Contribution to GNP 4.8% 7.3% 9.5%
Contribution to Services Sector 26.6% 37.3% 41.1%
Source:  Bank of Cape Verde. Exchange rate: CVE110,265 = 1 EuroWT/ACC/CPV/3
Page 47
In an effort to alleviate some of the built-in constraints to growing a limited market, the
Government provides a few incentives to investors.  The government department responsible for
tourism's development of the Ministry of Economy,  Growth and Competitiveness administers these
programs, and it is the primary regulatory body in this sector.  Foreigners seeking to invest in or
operate tourism projects must first obtain Foreign Investor Status (issued by PROMEX), after whichthe investor may apply for "Tourism Utility Status" (TUS). According to TUS Foreign Investment
Law the investor is entitled to certain benefits, including:
- customs exemptions from duties and taxes on materials and equipment destined for hotel
and tourist projects;
- tax exemptions on, among other things, profits and dividend, property, inheritance and
real estate; the exemption applies for five years for projects based in Santiago, São
Vicente and Sal, and seven years for all the other Islands; and
- right to transfer to the outside up to 100 per cent of profits procured; the right applies for
five years for enterprises based in Praia, Sal, and São Vicente, and seven years in the
other municipalities; during the next ten years the investor is entitled to transfer up to
50 per cent of profits regardless of the project's location.
Foreign workers recruited to work in a project declared to be TUS have the following benefits
and guarantees:
- Free transfer to the outside of 70 per cent of the salaries they receive in national currency;
and
- Free transfer to the outside of salaries corresponding to vacation they spend in a foreign
country.
- Transportation services
Transportation services are of particular importance to Cape Verde given its mountainous
geography, dispersed population and reliance on food imports.  The country has a strong tradition of
sea transportation, and with the advent of independence the Government focused on building the
infrastructure to connect the Islands by air and sea.  Cape Verde currently has at least one short haulnavigation port on each island and two seaports for long haul navigation – Port of Praia and Mindelo's
Porto Grande.  It also has one international airport on Sal Island and is building another near the
capital; Praia (in Santiago Island) for the moment and Mindelo (in S. Vicente Island) have smaller
airports; except in Brava where it is not operational now, each of the remaining Islands has a small
aerodromes.  The former state-owned road transportation services for passenger (mainly urban -
TRANSCOR) and some motor-lorries for official use have been winded up and the sector is
nowadays fully accessible throughout the Islands with new and former operators.
The Ministry of Infrastructures and Transport regulates all of the services in this sector.
- Maritime transport services
Cape Verde's commercial fleet has 40 registered ships averaging 34 years and totalling 17,238
Gross Tonnage.  There are 23 short haul navigation ships, six coastal ships and five tugboats.  Short
haul (inter-island) services – both passenger and freight – may only be performed by domesticenterprises.  A small group of private enterprises and Arc Verde, a government-owned enterprise
currently in liquidation, provide such services.
The long haul fleet consists of four ships totalling 2,898.38 Gross Tonnage and averaging
30 years; 12 long haul vessels are registered in Cape Verde, but they do not operate with any
regularity.  There are currently two Cape Verde-based joint ventures engaged in this sector – MARÉWT/ACC/CPV/3
Page 48
VERDE and CSLINE.  Both enterprises travel between Northern Europe and Cape Verde at least
once a week.   There are no restrictions on foreign participation in long haul transportation.
Table 15
Structure of Cape Verde Fleet
No. of ShipsGross Tonnage
(TAB)Average Age (years)
1992 2000 1992 2000 1992 2000
Long Haul 12 5 36,252 7,104 17.6 25
Short Haul 23 23 14,821 11,025 31 32
Coastal 6 6 2,000 2,000 38 43
Port Operations 4 5 1,789 1,000 29.7 29
Total 45 39 54,862 21,129 29.075 32.25
CABNAVE, a joint government/private sector enterprise, provides ship maintenance and
repair services in the São Vicente dry docks.  CABNAVE's primary market is fishing vessels, the
majority of which operate under foreign flag and other small and medium-size ships that transit fromthe North to the South Atlantic.  The National Port Administration, a government enterprise, provides
towing services.  There are no impediments to foreign participation in either the maintenance and
repair or towing sector.
Table 16
Port Traffic in Cape Verde
Evolution of Port Traffic 1998 1999 2000 2001
Ship Movement 4,491 4,906 4,723 5,021
Short Haul Ships 3,600 4,011 3,818 3,963
Long Haul Ships 891 891 905 1,058
Merchandise Movement 698,437 843,343 852,453 910,819
Short Haul Merchandise
(ton)289,763 355,918 368,170 420,100
Long Haul Merchandise
(ton)408,674 487,425 484,283 490,719
Passenger Movement 311,991 385,846 452,391 450,742
Container Movement 13,942 17,147 19,148 18,219
- Air transport services
Cape Verde Airlines (TACV) provides domestic and international air transportation.  A
government enterprise currently in the privatization process, TACV is expected to emerge as a private
entity by 2003.  Domestically, TACV services all of the Islands except Brava (which no longer has an
airport).  Cape Verde Express, a privately owned ch arter operation, also services the Islands.  TACV's
international routes traditionally have been to Lisbon and Dakar, but the airline has signed several
accords with air transporters in West Africa with a view to expanding its presence in the sub-region.WT/ACC/CPV/3
Page 49
Table 17
Evolution of Airport Traffic
Aircraft Movement Domestic & international flights landing in Cape Verde
Airports 1998 1999 2000 2001
AIAC 10,431 11,536 14,692 16,103
AFM 8,689 8,736 9,889 11,011
ASP 3,879 3,604 4,396 4,660
ASANT 540 458 128 278
ANIC 1,130 904 1,114 986
AFGO 1,224 1,062 1,246 1,452
ABRV 42 0 0 0
ABVT 1,414 1,735 2,733 3,044
AMAI 691 596 582 816
Total 28,040 28,631 34,780 38,350
Passenger Movement - Domestic & international
Airports 1998 1999 2000 2001
AIAC 443,999 492,804 635,563 708,711
AFM 198,739 222,522 243,186 264,823
ASP 98,158 104,928 122,400 132,693
ASANT 6,387 4,735 1,216 3,212
ANIC 20,850 22,740 27,321 24,997
AFGO 31,837 33,917 56,250 67,840
ABRV 481 0 0 0
ABVT 18,262 24,960 40,170 47,351
AMAI 10,254 10,954 12,666 16,652
Total 828,967 917,560 1,138,772 1,266,279
Cargo Movement - Domestic & international
Airports 1998 1999 2000 2001
AIAC 2,688,282 3,058,585 3,472,736 3,956, 694
AFM 1,098,802 1,067,212 1,262,254 1,413,152
ASP 603,570 637,965 740,838 697,262
ASANT 12,550 8,085 3,012 5,454
ANIC 25,858 25,534 38,091 39,946
AFGO 28,393 54,016 50,079 54,874
ABRV 274 0 0 0
ABVT 23,310 22,660 23,319 43,836
AMAI 8,253 11,897 15,353 37,442
Total 4,495,019 4,885,963 5,605,682 6,248,660
- Road transportation
Road transportation services have been fully privatized.  The principal urban cities are
connected to villages by a network of private vehicles that transport both passengers and merchandise.
Taxis service all of the Islands, and two private entities provide mass transportation within Praia and
Mindelo.  There are no impediments to foreign participation in this sector.
- Financial services
The financial services sector plays an important role in Cape Verde's development,
contributing 5 per cent of gross domestic product in the last five years (1998-2002).  The Bank ofWT/ACC/CPV/3
Page 50
Cape Verde regulates and supervises all insurance and banking activities to ensure the efficient
operation of the country's financial system.
- All insurance and insurance-related services
There are currently two private insurance enterprises servicing the domestic market, both of
which have local and foreign investors.  With CVE200 million of capital stock, the GARANTIAInsurance Company controls 60 per cent of the market while IMPAR  controls 40 per cent and
CVE400 million of capital stock.  In addition to insurance companies, the insurance sector also
contains "insurance mediators" whose function is to provide advice and negotiate insurance contracts
between consumers (individuals or businesses) and the insurance companies.  There are two
categories of Insurance Mediators – agents and brokers.  At present, there are up to 113 insurance
mediators in Cape Verde, of which two are insu rance brokers.  The two brokers are Assistência
Global em Seguros, Lda (AGS) and Corretora de Seguros, Lda (BECIM), both of which are privatelyowned with local and foreign investors.
The Bank of Cape Verde regulates and supervises insurance entities according to Decree-Law
No. 52-F/90 of 4 July.  Insurance enterprises are limited to providing insurance and related services
(e.g., life and non-life insurance and re-insurance services).  In addition, they must satisfy the
following requirements:
- adopt the form of a limited liability corporation;
- endow the corporation with a capital stock of not less than CVE200 million to engage in
life and non-life insurance activities, and not le ss than CVE50 million to engage solely in
life insurance activities.  The capital stock must be entirely subscribed and obtained;
- establish a board of directors constituted by a minimum of three members retaining
sufficient powers to effectively determine the orientation of the entire insurance activity;
- provide information on the enterprise's promoters, proposed administrators, directors and
managers;
- provide the corporation's statutes (i.e. Articles of Incorporation); and
- before an insurance enterprise can receive authorization to operate in Cape Verde, the
Bank of Cape Verde must first determine that the above requirements have been met.
Once BCV issues its recommendation, the Prime Minister and the Minister of Finance
may provide the requisite authorization.
BCV also regulates and supervises insurance brokers and agents pursuant to Decree-Law
No. 101-P/90 of 23 November.  Insurance agents must be of legal age (at least 18 years old); they
must be legally competent to conduct business affairs; and they must satisfy minimum academic
qualifications, which are set by the Ministry of Finance.  Individuals convicted of any major crimes(e.g., robbery, abuse of trust, fraud, and fraudulent bankruptcy) are ineligible.  Foreign nationals may
become agents provided they meet all of the qualification requirements and have resided in Cape
Verde for more than two years.  Qualified foreign nationals will be allowed to work as agents under
the same terms that apply to Cape Verde citizens working in the foreign national's country of origin.
Insurance brokers must be registered as agents for at least three years, and additionally must:
- operate a self-owned enterprise;
- employ a minimum of 1 full-time staff person;
- employ at least one risk analyst (even on a part-time or service contract basis);
- be free of any financial infractions in the preceding two years; and
- be financially solvent and hold a diversified insurance portfolio (in terms of number of
insured and level of risk).WT/ACC/CPV/3
Page 51
 There are no additional constraints on foreign nationals seeking to become brokers.
- Banking and other financial services (excluding insurance)
-B a n k i n gCape Verde's banking system is organized on a three tier structure:  commercial credit
banking, parabanking, and international or offshore banking.  There are four commercial banks with atotal of 35 branches servicing all of the Islands.  Parabanking institutions – defined as those
institutions that exercise some credit functions or activities that may affect operation of monetary,
financial or exchange markets – are key players in the financial services market.  There are a few
parabanking institutions in Praia, Cape Verde's capital.  International or offshore banking also plays a
significant role in this sector, and there are currently three banks authorized to conduct such
operations.
The Bank of Cape Verde regulates and supervises all banking and parabanking activities, and
Law No. 03/V/96 of 1 July provides the regulatory framework for this sector.  Before a commercial or
parabanking institution can be constituted, it must obtain a favorable recommendation from the Bank
of Cape Verde.
5  BCV determines whether the institution would contribute to the efficiency of the
national financial system and to meet the objectives of the country's economic, financial, monetary
and exchange policies.  Commercial banking and parabanking institutions must also satisfy thefollowing requirements:
- adopt the form of a limited liability corporation, with shares representative of its
mandatory nominal capital or issued to the registered bearer;
- control a minimum of CVE300 million in capital stock that is totally subscribed and
obtained;
- employ promoters, proposed administrators, managers and directors qualified to
guarantee a sound and prudent management of the institution or branch; and
- provide a copy of the statutes of the so ciety (i.e., Articles of Incorporation).
Once BCV issues a favorable recommendation, the commercial or parabanking institution
must receive authorization via ministerial decree from the Ministry of Finance.  Foreign commercialand parabanking institutions authorized to operate in Cape Verde are subject to the same laws, and
receive the same benefits, as domestic institutions.
International or offshore banks are subject to a special regime.  The establishment of an
international or offshore bank requires prior authorization from the Government.  The authorization is
to be issued in a ministerial decree from the Minister of Finance, upon recommendation from the
Bank of Cape Verde.  The authorization is granted only to national and foreign entities of recognized
prestige and financial capability.  Decree-La w No. 66/97 of 3 November, Law No. 43/III/88 of
27 December (rewritten in Law No. 32/V/97 of 30 June) and Decree-Law No. 109/89 of 30 December
are the controlling legal provisions.
                                                     
5 Foreign banks seeking to open representation offices also must receive prior authorization from the
Bank of Cape Verde.  These offices are limited in the kinds of activities they can conduct, and they are not
authorized to perform banking and parabanking operations (representation offices are usually established to
explore the feasibility of opening a bank branch in-country).WT/ACC/CPV/3
Page 52
Figure 1
Constitution of Cape Verde's Commercial Banks
Banco Commercial
do Atlântico
Owned by:
Consortium of Caixa Geral de Depósitos
& Banco Interatlântico (52.5 per cent)Guarantia Insurance Company(12.5 per cent)
The State of Cape Verde (10 per cent)
Bank Employees (4.4 per cent)Other shareholders (20.6 per cent)Caixa Economica de Cabo Verde
Owned by:
National Institute of Social Providence
(29.6 per cent)Montepio General Mutual Association(17.55 per cent)
Montepio General Credit Union (9.77 per cent)
Postal Service (14.99 per cent)Impar Insurance Company (11.03 per cent)Local private investors (7.6 per cent)Employees (2.78 per cent)
Other investors (7.02 per cent)
•348 million CVE o f
capital stock
•10 branches and
12 postal outlets•1 billion CVE of capital stock
•18 branches
Banco Interatlântico
•Principal shareholders: Caixa Geral de
Depósitos (70 per cent) & Local private
investors (30 per cent)
•600 million CVE of capital stockBanco Tota e Açores
•Portuguese-owned bank
•300 million CVE o f
capital stock
•3 branchesWT/ACC/CPV/3
Page 53
Figure 2
International/Off-Shore Banking
Banco Insular
CVE780 million of capital stock
Insular Holding sole shareholderBanco Internacional Trading
CVE150 million of capital stock
Entirely private
Banco Fiduciário Internacional
CVE150 million of capital stock
Essentially private
55 per cent subscribedWT/ACC/CPV/3
Page 54
Table 18
Parabanking Institutions
Entity Activity
Investment Firms Limited to issuing loans (e.g., cannot accept deposits or
transfer funds); must control capital stock of at leastCVE100 million.
Risk ("Venture") Capital Firms May purchase temporary investment shares in an enterprise to
promote high-tech and innovative projects; must control capitalstock of at least CVE60 million.
Financial Leasing (i.e. loans) Firms Limited to issuing loans for both real and non-real property;
must control capital stock of at least CVE20 million (for firms
engaged in real property loans) and CVE30 million (for firms
engaged in both types of loans).
Regional Development Firms Limited to investing in local communities; must control capital
stock of at least CVE60 million.
Exchange Agencies Limited to purchasing and selling foreign currency; Agency
operators must first obtain authorization from BCV and satisfycertain requirements:  (1) adopt the form of a capital stockenterprise or partnership; (2) control capital stock of at least
CVE5 million; and (3) display term "Exchange Agency" in
enterprise's title.
Credit Card Firms Limited to providing credit card and related services.
- Other financial services
Cape Verde has completed the legal framework to establish a stock market, but the Bolsa de
Valores is not currently operational.  It is unclear when the Bolsa can be expected to commenceoperations.
2. Policies affecting trade in services
General reference to main laws, regulations, rules, procedures, decisions, administrative
action and other legal instruments and a description of specific measures affecting trade in services.
Distinctions based on modes of supply and/or sectors could be made whenever relevant:
(a) Government departments, agencies, professional associations or other bodies with
authority or a role relevant to the conduct of service activities
There are a number of government ministries, agencies and professional associations that play
a role in the conduct of service activities.  The principal governmental bodies are:
- Ministry of Economy, Competition and Growth;
- Secretary of State for Tourism;
- PROMEX;
- National Food Security Agency (ANSA);
- Institute to Assist Small and Medium Enterprises (IAD);
- General Department of Tourism;
- Ministry of Infrastructures and Transport;
- Ministry of Finance, Planning and Regional Development;
- Ministry of Health;
- Ministry of Education and Human Resource Capacity-Building;WT/ACC/CPV/3
Page 55
- Ministry of Culture;
- Ministry of Agriculture and Fisheries;
- The Bank of Cape Verde;
- The Chamber of Commerce; and
- Many professional associations also play a role in this sector, including the Bar
Association, Association of Women Lawyers, the Doctor's Association, and the
Association of Masons and Carpenters, etc.
(b) Judicial, arbitral or administrative tribunals or procedures providing for the review of,
or remedies in relation to, administrative decisions affecting trade in services
The Foreign Investment Law (Law No. 89/IV/93 of 13 December) requires all disputes
between foreign service providers and the State to be submitted to mediation and arbitration, unless an
agreement or international treaty to which Cape Verde is a signatory provides otherwise.
(c) Provisions, including those in intern ational agreements, concerning qualification
requirements and procedures, technical standards and licensing and/or registration
requirements for the supply of services
There are a number of provisions regarding qualification requirements for the supply of
services; they have been fully detailed in the relevant sections of this Memorandum.
(d) Provisions governing the existence and opera tion of monopolies or exclusive service
suppliers
While much of the services market has undergone significant liberalization, a few monopolies
do exist in the provision of certain basic services, notably in telecommunications, electricity and
water.  These monopolies function under terms set by concession contracts signed with the State.
(e) Provisions relating to safeguard measures as they apply to trade in services
There are no provisions for safeguards measures in the services sector.
(f) Provisions relating to international tran sfers and payments for current transactions of
services
According to Decree Law 26/98 of 29 June, transfers and payments for current transactions
may be done freely , except in the following cases, which require prior authorization from the Bank of
Cape Verde:
- transfers pertaining to invisible currents operations in amounts greater than
CVE1,000,000 included in the line item "private unilateral transfers";
- transfers in amounts greater than CVE5,000,000 in payment for services rendered
(interest payments or previously-approved credit are exempt); and
- Under the Foreign Investment Law, when an enterprise is sold, liquidated or dissolved the
Bank of Cape Verde may require the transfer of capital to be effectuated in quarterly
instalments if transferring the sum in full is likely to cause serious disturbance to the
Balance of Payments.WT/ACC/CPV/3
Page 56
(g) Provisions relating to capital transactions affecting the supply of services
According to Decree Law No. 26/98 of 29 J une and Bank of Cape Verde Notice No. 4/98,
capital operations require the Bank's prior authorization (stock market transactions will be exempt
from this provision).
(h) Provisions governing the procurement by governmental agencies of services
The provisions regarding government procurement of services are set out in Decree-Law
No. 2/97 of 21 January (see also, regulations implementing the Government's yearly budget, which
provides specific requirements).  All acquisitions must be explicitly budgeted and authorized by the
Ministry of Finance, Planning, and Regional Development.  The Directorate General for State
Property (DGPE) oversees the purchase of services , solicits bids, and signs and renews contracts.
DGPE has sole authority to purchase certain services, notably electricity, water, telecommunication,
insurance, rent, security and janitorial services.  The individual ministries may purchase certain otherservices, provided the cost does not exceed a maximum amount set by the Directorate General of the
Treasury.
(i) Provisions concerning any form of aid, grant, domestic subsidy, tax incentive or
promotion scheme affecting trade in services
To the extent that such aid, grants, subsidies, incentives or promotion schemes exist, they are
identified in detail in the appropriate sections.  Generally, the Foreign Investment Law provides for
certain tax and other fiscal incentives to investors (Article 13), and the Industrial Statute entitles
eligible enterprises to customs and other benefits (Article 28).  Additionally, the Government may
provide assistance to public enterprises (e.g., for purposes of restructuring), and such actions are
promulgated in ministerial dispatches.
3. Market Access and National Treatment
(a) Limitations on the number of service suppliers
There are no such limitations.
(b) Limitations on the total value of service transactions or assets
There are no such limitations.
(c) Limitations on the total number of service op erations or on the total quantity of service
output
There are no such limitations.
(d) Limitations on the total number of natural persons that may be employed in a
particular service sector
There are no such limitations.WT/ACC/CPV/3
Page 57
(e) Restrictions on, or requirements of specific types of legal entity through which a service
may be supplied
Insurance enterprises and commercial banks must be limited liability enterprises, and
exchange agencies must be a capital stock enterprise or partnership (see section VI.1(e)).  In the
construction sector, foreign enterprises must establish an office in-country (see section VI.1(b)).
(f) Limitations on the participation of foreign capital
There are no such limitations.
(g) Measures providing for less than the treatmen t accorded to national services or service
suppliers
Foreign Service suppliers in general benefit from the same treatment accorded to domestic
suppliers.  The Foreign Investment Law establishes certain procedural requirements for foreign
suppliers that are not applicable to domestic enterprises (e.g., foreign investors must apply for"Foreign Investor Status").  Once an enterprise is duly registered under Cape Verde law, however,
there are only a few instances in limited sectors where a foreign supplier receives dissimilar treatment:
the maritime transportation sector reserves short-haul services for national enterprises; and practicing
attorneys must be Cape Verde citizens (but foreign nationals may conduct legal consulting activities);
in the insurance sector, insurance mediators must fulfill a two year residency requirement (seeapplicable sections above).
4. Most-Favored-Nation Treatment
There are no existing measures inconsistent with MFN treatment.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade in
services
Please see list of agreements in Annex 8 A.
2. Economic integration, customs union and free-trade area agreements
As mentioned in Sections IV.1 (b) and IV.1 (l), Cape Verde is a member of ECOWAS
(Economic Community of West African States).  In the ECOWAS legal text of the charter or treaty,
the 15 ECOWAS countries agreed to implement a Common External Tariff (CET) and to form the
ECOWAS Customs Union.  In fact and in practi ce, neither a Customs Union nor a Common External
Tariff has been implemented, and decisions taken on tariff consolidation, liberalization of
unprocessed goods and, handcrafts or free trade in industrial goods and services are not implemented.
Also, there is an agreement on economic cooperation between Angola, Cape Verde, Angola,
Guinea-Bissau, Mozambique and Sao Tome e Principe, instituting among others free trade. TheAgreement was signed on 30 March and became effective on 21 June 1980.  Free trade is not yet
implemented.WT/ACC/CPV/3
Page 58
3. Labour markets integration agreements
Free movement of persons, right of residence and establishment for citizens of the ECOWAS
Member States are in effect, according to Article 59 of the ECOWAS Treaty and its Protocols. (Law
No. 18/II/82, O.B. No. 18/82, 4º Supl; Law No. 60/II /85 de 21/6, O.B. 25/85;  Law No. 31/IV/91, O.B.
No. 52/91, 4º Supl; Lei No. 34/IV/91, BO 53/91, 2ª  Supl; Law No. 35/IV/91, O.B. No. 52/91, 5.º
supl.; Resolution No. 115/IV/95, O.B. No. 37/95, 1.ª série, 5.º supl)
4. Multilateral economic cooperation, membership in the multilateral economic
organizations, trade-related programs of other multilateral organizations
- International Air Transport Association (IATA)
- International Civil Aviation Organization (ICAO)
- World Customs Organization
- World Intellectual Property Organization (WIPO)
- World Tourism Organization
- World Maritime Organization (WMO).
VIII. OTHER PROCEDURAL REQUIREMENTS
There are no procedural requirements in Cape Verde, other than those described in Sections I
through VII of the Memorandum on the Foreign Trade Regime.
_______________WT/ACC/CPV/3
Page 59ANNEX 1
STATISTICS AND PUBLICATIONS
1. Foreign trade statistics for goods and services:  responsible agencies
Table 19
Balance of Payments
1994 1995 1996 1997 1998 1999 2000 2001
Current Account -3,766.3 -4,755.4 -2,890. 6 -2,769.4 -5,689.1 -7,680.1 -7,758.3 -7,150.8
Goods -14,830.5 -16,681.0 -15,167.0 -16,014. 0 -18,190.6 -22,096.4 -22,437.8 -23,957.7
- General Merchandise -15,577.0 -17,302.6 -15, 947.6 -18,378.9 -20,012.0 -22,576.7 -24,914.8 -26,332.5
- Exports F.O.B. 397.8 646.5 1,038.6 1,293.7 396.1 326.7 296.7 242.3
- Imports F.O.B -15,974.8 -17,949.1 -16,986. 1 -19,672.6 -20,408.1 -22,903.4 -25,211.5 -26,574.8
- Goods for Transformation 51.0 -36.2 70.7 354.5
- Repair of Goods 154.2 160.0 262.7 145.8 201.5 -90.7 -93.3 -537.2
- Goods Acquired in Ports by Transposition 592.3 461.7 517.9 2,219.0 1,568.9 607.2 2,499.6 2,557.4
- Non-monetary Gold 0.0 0.0 0.0 0.0
Services (Net) 1,022.7 477.4 613.9 1,808.1 -400.2 -1,081.9 579.4 934.4
- Transportation 841.6 674.5 606.7 1,514.9 514.0 -152.1 -82.8 64.6
- Travel -234.9 -500.6 -542.2 -208. 5 -340.5 -1,241.4 381.4 418.5
- Other Services 413.1 303.5 553.6 501.6 -573.7 311.5 280.8 451.3
Revenues -49.4 -202.6 -355.6 -334.2 -542.9 -867.3 -1,436.6 -508.7
- Work Revenues 158.6 85.4 82.5 48.8 136.7 71.3 106.0 111.6
- Investment Revenues -208.0 -288.0 -438.1 -383.0 -679.6 -938.6 1,542.6 -620.4
Current Transfers 10,091.0 11,650.8 12,018.0 11,770.7 13,444.5 16,36 5.5 15,536.7 16,381.2
- Government General63,476.6 3,997.5 4,099.9 5,187.2 5,361.1 5,028.4 2,613.6 2,600.7
Other Services 6,614.4 7,653.3 7,918.1 6,583.5 8,083.5 11,337.1 12,932.2 13,780.5
- Returns from Emigrants 6,614.4 7,653.3 7,918.1 6,583.5 7,049.8 8,070.8 7,733.5 8,851.3
                                                     
6 includes the part of transfers of capital that it was possible to break-downWT/ACC/CPV/3
Page 601994 1995 1996 1997 1998 1999 2000 2001
Balance of Capital and Financial Operations 4,309.9 12,142.6 3,711.7 6,696.1
- Capital Account 1,643.3 1,604.8 1,059.8 587.0 1,838.9 1,376.0 1,341.6 3,004.0
- Capital Transfers 1,643.3 1,604.8 1,059.8 587.0 1,838.9 1,376.0 1,341.6 3,004.0
- Government General 1,643.3 1,604.8 1,059.8 587.0 1,838.9 1,376.0 561.6 0.0
- Other sectors 0.0 0.0 0.0 0.0 0.0 0.0 780.0 3,004.0
Financial Accounts Operations 2,628.3 2,840 .7 3,276.7 5,011.7 2,471.0 10,766.6 2,370.0 3,692.1
Direct Investment 140.3 1,968.0 2,334.4 1,074.1 859.9 5,432.2 2,436.9 80.9
Outside the Country -34.0 -44.1 -21.8 -4.6 0.0 -40.8 -2.6 0.0
In the Declaring Economy 174.3 2,012.1 2,356.2 1,078.7 859.9 5,472.9 2,439.5 80.9
Portfolio Investment 0.0 292.9 13.4 -167.1
Other Investments 2,488.0 872.7 942.3 3,937.6 1,611.1 5,041.6 -80.2 3,778.2
- Assets 131.6 -128.0 -185.5 -167.2 - 2,203.9 -1,457.2 -2,442.0 -6.4
- of which Trust fund -2,794.5 -1,940.3 -2,384.2 0.0
- Liabilities 2,356.4 1,000.7 1,127.8 4,104.8 3,814.9 6,498.8 2,361.8 3,784.7
- Errors and Omissions -948.9 2,394.2 113.0 1,900.5 1,120.5 -759.3 -1,046.1 2,011.4
- Global Balance 1,454.2 -2,704.1 1, 332.9 928.8 -258.7 3,364.9 -3,000.6 -2,466.2
Financing -1,454.2 2,704.1 -1,332. 9 -928.8 258.7 -3,364.9 -3,000.6 -2,466.2
- Reserve Assets -1,701.8 2,377.7 -1,632.8 916.7 -816.4 -4,401.6 1,069.7 -2,857.9
- of which currency -1,698.9 2,373.7 -1, 628.6 914.0 -813.7 -4,403.4 1,052.9 -2,869.0
Exceptional Financing 247.6 326.4 299.9 -1,845.5 1,075.2 1,306.7 1,930.9 391.7
- Government 247.6 326.4 299.9 -1,845.5 919.0 767.8 2,127.2 426.7
- Long Term Loans 25.5 -160.8 0.0
- Short Term Loans 853.6 1,181.8 1,650.0 704.6
- Variation of Delays 247.6 326.4 299.9 -1,845.5 40.0 -253.2 477.2 -277.9
- Other Sectors 156.2 268.8 -196.3 -35.0
Source: BCV
Note:  Adaptation to methodology of the V MBP Manual of the Balance of Payments (1994 to 1999)
Table 20
Consumer Price Index And Inflation Rate
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Consumer Price Index 109.0 116.0 122.0 129. 2 133.5 144.7 153.4 166.8 173.9 181.4 177.1 183.5
Inflation rate 6.4 5.2 5.9 3.3 8.4 6.0 8.7 4.3 4.3 -2.4 3.7WT/ACC/CPV/3
Page 61Source: National Institute of Statistics
Table 21
Imports by 2 Digit Heading of the Harmonized System
1998 1999 2000 2001
Heading DesignationValue
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)
01 Live animals 15,331 10 17,737 10 16,241 9 11652 9
02 Meats and edible meat offals 65,093 346 105,195 691 235,212 1,875 323,217 2,520
03 Fish and crustaceans, mollusks and other
aquatic invertebrates20,614 57 23,468 65 28,265 75 35473 82
04 Dairy produce, birds eggs; natural honey,
edible products..923,872 4,594 1,078,837 5,688 1,001,453 5,585 1,630,701 7,733
05 Products of animal origin, non elsewhere
specified or included2 70 2 20 - - - -
06 Live trees and other
Plants; bulbs, roots and the like; cut flowersand..555 1 1,094 1 1,832 2 2,799 5
07 Edible vegetables and certain roots and
tubers630,328 12,622 667,657 13,158 541,099 11,325 521,970 11,195
08 Edible fruits and nuts; peels of citrus fruits
and melons180,498 1,557 219,848 2,071 262,283 2,670 244,168 2,085
09 Coffee, tea, maté and spices 159,719 519 169,604 622 166,324 660 132,573 625
10 Cereals 1,446,823 69,239 1,836,098 81,703 1,342,762 61,421 1,699,596 63,546
11 Products of the milling industry, malt,
starches, inulin, wheat gluten37,027 814 60,868 1,425 125,420 3,522 46,145 868
12 Oil seeds and eleaginous fruits; misc grains
seeds and fruits; industrial..16,883 274 24,321 1,012 18,511 853 9120 33
13 Lac, gums, resins and other vegetable saps
and extracts306 0 519 5 870 0 511 4
14 Vegetable plaiting materials; vegetable
products not elsewhere specified or included -  - 41 0 165 1 10 0
15 Animals or vegetable fats and oils and their
clevage products..1,078,948 9,928 892,116 8,650 856,961 8,927 865,757 8,965WT/ACC/CPV/3
Page 621998 1999 2000 2001
Heading DesignationValue
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)
16 Preparations of meat, of fish or of
crustaceous, mollusks or other...205,097 1,117 181,369 903 193,215 952 290680 1394
17 Sugars and sugar confectionery 747,648 17,383 603,445 15,542 584,541 13,917 951,055 20,351
18 Cocoa and cocoa ... 40,737 117 46,436 182 39,411 130 55,498 177
19 Preparations of cereals, flour, starch or milk;
bakers' wares181,944 1,337 234,924 1,815 269,847 2,088 305,264 2,233
20 Preparations of vegetables, fruits, nuts or
other parts of plants362,855 3,707 383,353 3,929 292,044 2,959 351,807 3,263
21 Miscellaneous edible preparations 595, 608 2,026 592,671 2,017 730,140 2,401 781,756 2,687
22 Beverages, spirits and vinegar 849,191 13,23 5 1,131,174 18,183 1,497,206 24,573 1,717,142 28,167
23 Residues and waste from food industries;
prepared animal feed165,914 2,887 168,936 3,529 162,156 3,318 140,042 2,657
24 Tobacco and manufactured tobacco
substitutes73,080 44 141,783 96 178,643 96 215,544 108
25 Salt, sulphur, earths and stones; plastering
materials, lime and cement834,151 132,367 964,884 159,100 1,068,195 166,567 1,077,075 160,239
26 Ores, slag and ash  -  -  -  - 421 2 16 0
27 Mineral fuels, mineral oils and products of
their distillation; bituminous..1,115,275 54,106 1,486,174 80,792 1,679,552 60,346 1745809 57912
28 Inorganic chemical, org/inorg. Compounds
of precious metals74,041 888 57,831 727 52,062 625 56,554 701
29 Organic chemicals 48,583 311 45,878 300 66,852 275 70,813 203
30 Pharmaceutical products 449,842 216 317,143 173 437,549 265 439,515 231
31 Fertilizers 16,179 302 8,513 195 4,903 125 15,392 279
32 Tanning or dyeing extracts, tannins and their
derivatives; dyes, pigments..136,775 968 225,116 2,425 203,195 2,418 229,810 3,156
33 Essential oils and resinoids; perfumery,
cosmetic or toilet preparations135,940 686 134,690 563 165,535 621 151,724 638
34 Soap, organic surface agents, washing
preparations..257,148 2,915 265,847 3,108 294,474 3,355 291,470 3,458
35 Albuminoidal substances; modified starches;
glues; enzymes28,708 105 26,809 116 25,331 117 25794 83
36 Explosives; pyrotechnic articles, matches,
pyrophoric alloys..21,768 105 19,713 104 31,777 140 19,017 90WT/ACC/CPV/3
Page 631998 1999 2000 2001
Heading DesignationValue
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)
37 Photographic or cinematography goods 31,857 39 35,047 46 36,332 38 32,266 32
38 Miscellaneous chemical products 174,507 719 208,376 817 196,515 869 194,072 916
39 Plastics and articles thereof 569,742 2,636 683,109 2,924 668,320 2,766 852,471 3,217
40 Rubber and articles thereof 226,967 688 240,626 703 226,728 654 269,322 726
41 Rawhides and skins (other than fur skins)
and leather766 1 392 1 193 0 1074 1
42 Articles of leather; saddlery and harness;
travel goods, handbags..24,353 71 38,165 93 33,194 93 32421 103
43 Fur skins and artificial fur; manufactures
thereof1 0 37 0 111 0 10 0
44 Wood and articles of wood; wood charcoal 516,926 11,366 690,340 13,386 638,056 13,894 706,714 14,006
45 Cork and articles of cork 1,273 4 1,930 10 1,826 2 2,797 9
46 Manufactures of straw, of esparto or other
plainting materials..1,164 10 840 2 1,450 3 1446 2
48 Paper and paper board; articles of paper pulp,
of paper or of paperboard384,129 1,769 450,399 2,017 532,034 2,494 585,447 2,400
49 Printed books, newspapers, pictures and
other products of the printing..173,960 223 158,764 201 152,242 147 121,317 228
50 Silk 197 1 406 0 994 2 125 0
51 Wool, fine or coarse hairs; horsehair yarn
and woven fabric518 1 717 1 361 0 240 0
52 Cotton 51,785 85 45,350 87 56,602 102 52870 105
53 Other vegetable textile 2,583 7 1,651 4 2,651 6 1,385 4
Fabrics, paper yarn and fabrics of paper yarn
54 Man-made filaments 14,279 16 8,120 11 6,490 8 4649 7
55 Man-made staple fibers 20,826 30 30,613 64 34,927 61 32396 45
56 Wadding, felts and non-wovens; special
yarns, twine, cordage, ropes..22,033 58 30,999 92 15,321 46 30,125 106
57 Carpets and other textile floor coverings 5,185 14 4,733 11 5,558 13 9,188 24
58 Special woven fabrics; tufted textile fabrics;
lace, tapestries; trimmings..2,587 2 2,759 4 3,035 21 3,504 15
59 Impregnated, coated, covered or laminated
textile fabrics; textile articles.3,248 4 7,642 11 4,810 13 4193 8
60 Knitted or crocheted fabrics 1,394 2 541 1 575 1 4436 5WT/ACC/CPV/3
Page 641998 1999 2000 2001
Heading DesignationValue
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)
61 Articles of apparel and clothing accessories,
knitted or crocheted104,003 138 128,998 221 142,726 261 105328 208
62 Articles of apparel and clothing accessories,
not knitted or crocheted80,765 135 109,933 161 97,642 153 122,781 193
63 Other made-up textiles; sets; worn clothing
and work textile articles; rags250,420 1,372 256,265 1,373 253,331 1,314
64 Footwear, gaiters and the like; parts of such
articles160,914 501 151,160 451 165,379 561 160,777 520
65 Headgear and parts thereof 6,858 9 7,556 5 8,509 8 10594 15
66 Umbrellas, sun umbrellas, walking sticks,
seatsticks, whips, riding-crops..2,066 4 1,523 4 2,088 6 1,887 9
67 Prepared feathers and down articles made of
feather or down; artificial..4,999 21 6,237 20 7,028 19 4,494 18
68 Articles of stone, plaster, cement, asbestos,
mica or similar materials..68,487 805 82,319 1,083 99,872 1,479 85,968 1,037
69 Ceramic products 481,651 10,279 533,954 11,157 461,276 10,297 543464 11914
70 Glass and glassware 171,331 2, 036 189,702 2,231 191,769 1,754 145684 1391
71 Natural or cultured pearls, precious or semi-
precious stones, ..10,200 53 12,294 38 256 0 37,410 41
72 Iron and steel 515,942 12,028 387,492 9,865 626,715 16,860 472,956 11,365
73 Articles of iron or steel 672,847 4,460 813,587 5,580 795,291 5,010 839297 5268
74 Copper and articles thereof 22,141 36 27,516 52 21,813 42
75 Nickel and articles thereof 76 0 256 1 138 0
76 Aluminum and articles thereof 148,106 310 227,772 455 217,300 474 209,412 388
78 Lead and articles thereof 169 1 127 0 31 0 543 0
79 Zinc and articles thereof 4,026 19 4,724 23 5,990 19 9747 65
80 Tin and articles thereof 907 2 700 0 648 0 267 0
81 Other base metals; cermets; articles thereof 24 0 1036 12
82 Tools, implements, cutlery, spoons and forks,
of base metal; parts...83,174 199 125,027 215 90,882 226 103,344 181
83 Miscellaneous articles of base metal 184,312 404 190,155 372 197,476 402 193,872 365
84 Nuclear reactors, boilers, machinery and
electrical appliances; parts..2,065,951 2,236 2,898,676 2,305 2,460,940 2,307 3159097 2718WT/ACC/CPV/3
Page 651998 1999 2000 2001
Heading DesignationValue
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)
85 Electrical machinery and equipment and
parts thereof; sound recorders..1,820,623 1,863 1,951,489 2,577 2,571,242 2,303 2,212,694 2,592
86 Railway and tramway locomotives, rolling
stock and parts thereof;..8,121 163 11,440 226 15,046 337 19,706 467
87 Vehicles and other railway or tramway
rolling stock, and parts and..1,404,391 2,817 2,075,907 4,289 2,314,417 4,610 3,036,788 5,463
88 Aircraft, spacecraft, and parts thereof 59,143 3 46,732 2 438,178 24 140,987 31
89 Ships, boats and floating structures 42,648 55 632,864 1,346 24,539 97 30,148 49
90 Optical, photographic, cinematographic,
measuring, checking, precision..414,834 115 428,755 108 300,857 111 332,632 112
91 Clocks, watches and parts thereof 9,137 15 11,558 15 6,924 13 6176 8
92 Instruments; parts and accessories of such
articles3,728 4 4,283 2 6,414 5 1537 0
93 Arms and ammunition; parts and accessories
thereof8,832 1 505 0 858 0 6130 0
94 Furniture; bedding, mattress, mattress
supports, cushions and similar..507,611 1,327 670,806 1,523 651,708 1,745 614477 1563
95 Toy, games and sports requisites; parts and
accessories thereof55,188 154 61,934 171 64,678 164 72,011 176
96 Miscellaneous manufactured articles 71,515 186 87,195 227 82,468 186 94201 247
97 Works of art, collector's pieces and antiques 5,574 2 663 0 2,125 2 229 0
Total 22,601,474 394282 26,919,772 475484 27,523,350 454237 30523311 455895WT/ACC/CPV/3
Page 66Table 22
Exports by 2 Digit Heading of the Harmonized System
1998 1999 2000 2001
Headings DesignationValue
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)
03 Fish and crustaceans, mollusks and other
aquatic invertebrates191,037 2,146 189,501 1,236 86,459 283 15,000 67
04 Dairy produce, birds eggs; natural honey,
edible products..481 0  -  -  -  - 2,128 0
08 Edible fruits and nuts; peels of citrus fruits
and melons125 16 3,279 33  -  -  -  -
09 Coffee, tea, maté and spices  -  -  -  - 8,700 20 11,146 18
16 Preparations of meat, of fish or of
crustaceous, molluscs or other...3,841 17 113 0 13,675 61 22,660 167
17 Sugars and sugar confectionery  -  - 44 0  -  -  -  -
19 Preparations of cereals, flour, starch or milk;
bakers' wares406 5 718 7 629 6 1145 10
21 Miscellaneous edible preparations 64 0 48 0 34 0 125 0
22 Beverages, spirits and vinegar 6, 967 5,760 10,654 3,752 20,914 9,830 8,780 3,335
29 Organic chemicals  -  -  -  - 1,301 0  -  -
30 Pharmaceutical products  -  -  -  - 2,160 2 1,480 4
32 Tanning or dyeing extracts, tannins and their
derivatives; dyes, pigments.. -  -  -  - 1,605 1 1,910 2
39 Plastics and articles thereof 72 1  -  - 86 1
41 Rawhides and skins (other than fur skins)
and leather2,010 35 3,733 38 2,067 30 2,913 25
61 Articles of apparel and clothing accessories,
knitted or crocheted194 0  -  -  -  - 150,520 73
62 Articles of apparel and clothing accessories,
not knitted or crocheted187,808 64 232,553 83 428,512 241 448,696 240
64 Footwear, gaiters and the like; parts of such
articles605,170 164 666,598 190 667,163 167 505,945 83
68 Articles of stone, plaster, cement, asbestos,
mica or similar materials.. - - - - - - 4 00WT/ACC/CPV/3
Page 671998 1999 2000 2001
Headings DesignationValue
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)Value
(million
CVE)Weight
(ton.)
85 Electrical machinery and equipment and
parts thereof; sound recorders..18,233 7 62,881 10 28,113 9 26,439 9
94 Furniture; bedding, mattress, mattress
supports, cushions and similar..14 0 49 0  -  - 1,193 5
95 Toy, games and sports requisites; parts and
accessories thereof1,681 0
Total 1,016,350 8,214 1,170,243 5,350 1,261,332 10,650 1,201,887 4,039
Table 23
Gross National Product (in millions of CVE)
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Current GDP at market price721,573.4 22,930.0 24,380.6 29,078. 2 33,497.1 37,705.1 41,697.5 45,96 8.3 51,306.54 59,819.12 63,634.9
Net Revenue from outside8132.3 29.8 73.1 -299.7 -49.4 -202.6 - 355.6 -334.2 -542.9 -867.7 -1,436.6
Gross National Product (GNP)
= RNP921,705.7 22,959.8 24,453.7 28,778. 5 33,447.7 37,502.5 41,341.9 45,63 4.1 50,763.6 58,951.4 62,198.3
                                                     
7 Source: 1990 – 1997 Definitive Accounts INE, 1998 - 2000 Projections by INE Staff – IMF
8 Source: Service Factors (Net) BCV
9 Source: INE Calculations, Population 1990 – 34 1,491; 1995 – 386,185; 2000 – 434,625.  GNP  at current prices in Millions of CVE :  1990 – 21,705.7; 1995 – 37,502.5;
2000 – 62,198.3.  Median Exchange Rate CVE/US$ - 1990 – 69.92; 1995 – 76.12; 2000 – 117.48.  GNP per capita in US$:  1990 – 909 .1; 1995 – 1,275.8; 2000 – 1,218.1.WT/ACC/CPV/3
Page 68Table 24
Foreign Trade Data 1994-2000
1994 1995 1996 1997 1998 1999 2000 2001
National Export 408 687 1,046 1,295 1,016 1,170 1,261 1,201
Re-export 1,644 1,707 1,997 4,107 1,456 2,418 1,544 1,626
Import 17,113 19,394 19,355 21,76 3 22,597 26,915 27,519 30,519
Commercial Balance10-16,705 -18,707 -18,309 -20,468 -21,581 -25,745 -26,258 -29,318
Coverage Index112.4 3.5 5.4 6 4.5 4.3 4.6 4.0
Table 25
Consumer Price Index and Inflation Rate
Islands/Zones/National 1994 1995 1996 1997 1998 1999 2000 2001
Praia
Index 141.4 153 162 174.5 180.8 194.9 193.1 199.4
Inflation Rate 2.3 8.2 5.9 7.7 3.6 7.8 -0.9 3.2
São Vicente
Index 131.8 141.3 151.1 157.3 163.1 169.2 168.2 175.9
Inflation Rate 5.4 7.2 6.9 4.1 3.7 3.7 -0.6 4.5
Rural Zones
Index 131.3 142.8 151.2 166.7 174.3 180.1 174.1 180.3
Inflation Rate 3.2 8.8 5.8 10.3 4.5 3.3 -3.3 3.6
National Total
Index 133.5 144.7 153.4 166.8 173.9 181.4 177.1 183.5
Inflation Rate 3.3 8.4 6 8.7 4.3 4.3 -2.4 3.7
                                                     
10 Refers only to National Export
11 Refers only to National ExportWT/ACC/CPV/3
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2. Publications related to statistics
Table 26
Statistical Publications
INECV – May to June.  31 May 2002 Most recent data
Official Statistical Publication PeriodicityReference
PeriodDate of
PublicationDuration
Index of Price of Consumption Monthly April 2002 May 2002 1
Index of  Price of Consumption Annually 2000 February 2001 2
External Trade Monthly November 2001 May 2002 6
External Trade Annually 1999 April 2000 4
List of Publication Annually 1998 August 1998 8
National Accounts Annually 1985-95 April 1999 40
Civil State Statistics Annually 1995 November 1996 11
Annual Statistical Bulletin Annually 1989 November 1990 11
RGHP –2000: results (11 vol.) Decade 2000 June 2002 24
RGHP –2000: analysis (10 vol.) Decade 2000 June 2002 24
National accounts Annually 1996-97 June 2002 54
External Trade Annually 2000 June 2002 18
External Trade Annually 2001 July 2002 7
External Trade (FIR) Monthly December 2001 July 2002 7
Index of  Price of Consumption Annually 2001 July 2002 7
Index of  Price of Consumption (FIR) Monthly June 2002 July 1
Annual Inquiry holt at Enterprises Annually 2000 August 2002 20
Further publication
Tourism Statistics Annually 2000 August 2002 20
Turnover of Tourism structure
inventorySemester First Semester 2001 August 2002 14
External Trade Annually 2001 September 2002 9
Central balance Sheet Annually 10996-99 September 2002 33
3. Statistical data
(a) main economic indicators
(i) GNP
CVE62,198.3 million (See Section II.1.b.)
(ii) GNP per capita
US$1,218 (See Section II.1.b.)
(iii) budget
Data not available from National Institute of Statistics.
(iv) production and consumption of the basic goods
Data not available from National Institute of Statistics.WT/ACC/CPV/3
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(v) annual changes in prices
See tables 20 and 25 above.
(vi) employment in different sectors
Data not available from National Institute of Statistics
(vii) levels of employment
Data not available from National Institute of Statistics
(viii) balance of payments
See table 19 above.
(ix) foreign exchange
The Cape Verde Escudo rate of exchange is fixed to the Euro at the rate of 1 Euro to
CVE110.265.
(b) foreign trade statistics
(i) foreign trade (aggregates at the two digit HS levels)
(ii) export statistics
See Table in Section II.3.
(iii) import statistics
See Table in Section II.3.
(iv) imports from main suppliers, preferably at a tariff line level
See Table in Section II.3.
(v) trade by geographic areas (main trade partners)
See Table in Section II.3.
(c) government procurement statistics
(i) volume of government procurement broken down by:
- central government, sub-central government and other  entities, and within each of these
headings;
- supplies, construction and services.
Statistical data on government procurement not available.WT/ACC/CPV/3
Page 71
ANNEX 2
LIST OF LAWS AND LEGAL ACTS
1. Laws and legal acts regulating activity of the customs authorities; responsible agencies
Laws and Legal Instruments:
- Law No. 125/85 of 9 October, "Approves the tariff on import rights";
- Decree-Law No. 5/95 of 27 June , "Approves the customs fiscal infringement law," O.B.
No. 20 of 27 June; and
- Law No. 85/V/98 of 31 December, "Approves the Common Nomenclature of West
African States based on the Harmonized System for Designation and Codification of
Goods, O.B. of 31 December.
Boards Responsible:
- Chiefs of Customs offices;
- Chiefs of Customs office branches;
- Directors of Customs;
- Directors of Customs Circumscriptions;
- Directors of Central Services at the General Directorate of the Customs;
- Council Technical Board;
- General Customs Director; and
- Minister of Finance, Planning and Regional Development.
2. Laws and legal acts relating to non-tariff regulation of imports, exports and trade in
transit, rules of origin:  responsible agencies.
- Law No. 93/IV/93 of 15 December, "Private initiative operation is not forbidden to any
sector," O.B. No. 47 of 15 December;
- Law No. 92/IV/93 of 15 December, "States the benefit regime applicable to export and
import operations for goods and services," O.B. No. 47;
- Ministerial-decree No. 65/98 of 28 December, "Separate basic foodstuffs from the public
reserves for commercial activities," O.B. No. 47;
- Law No. 99/IV/93 of 31 December, "Approves the legal regime of free zone enterprises"
O.B. No. 49;
- Law No. 83/V/98 of 21 December, "Creates free trade zones" O.B. No. 47;
- Decree-law No. 57/99, "A pproves the Legal Trade regime" O.B. No. 1;
- Decree-law No. 4/99, "States the norms for economic operations," O.B. No. 1;
- Decree-law No. 3/99 of 1 February, "Total  liberalization of imports," O.B. No. 1;
- Decree-law No. 2/99 of 1 Febr uary, "Regulates the protection of competition practices,"
O.B. No. 1;
- Decree-law No. 1/99 of 1 February, "Establish es the price policy for goods and services,"
O.B. No. 1;
- Decree-law No. 59/99 of 27 Sept ember, "Regulates registration procedures for firms,"
O.B. No. 35;
- Legislative law No. 3/99 of 29 March, "App roves the Code of Trade Enterprises," O.B.
No. 9;
- Decree-Law No. 29/2002, of 9 December, "Liber alizes Staple food import, except wheat
flour", O.B. No. 35, first Series, of 9 December 2002;
- Decree-Law No. 14/2002, of 15 April, "Libera lizes the import wheat flour", O.B. No. 10,
first Series, of 15 April 2002; andWT/ACC/CPV/3
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- Decree No. 45790, of 3 July 1964, on rules of or igin (Articles 17 to 25), Preliminary
Instructions for Customs Tariff Annex to the Decree.
Responsible Agencies:
- Regional Directorate of Trade, Industry and Services of the Windward islands;
- General Directorate of Trade and Competition; and
- Ministry of Economy, Growth and Competitiveness.
3. Laws and regulations relating to foreign investment: responsible agencies.
Laws and Legal Instruments Regarding External Investment:
- Law No. 89/IV/93 of 13 December, "States the General rules governing External
Investments in Cape Verde, and rights and warranties and barriers in the ambit of external
investments," O.B. No. 47; and
- Regulatory law No. 1/94 of 3 January, "Con trols the authorization procedures regarding
external investment."
Responsible Agencies:
- PROMEX;
- Bank of Cape Verde;
- Ministry of Economy, Growth and Competitiveness; and
- Ministry of Finance, Planning and Regional Development.
4. Other laws and legal acts dealing with econom ic issues that affect trade:  responsible
agencies
Laws and legal instruments that have a bearing on trade have already been referred to in
sections 1 (customs), 3 (external investment), and 5 (services, namely agriculture, fisheries, financialand infrastructure).  Laws and relevant legal instruments in the sectors of industry and industrial
property are:
Industry:
- Decree-law No. 157/90 of 22 December, "Def ines the industrial activity and its
applicability to the Industrial Statute," O.B. No. 51;
- Decree-law No. 108/89 of 22 Decem ber,  "Approves the Industrial statutes," O.B. No. 52;
- Decree-law No. 110/89 of 3 December, "Fiscal exemptions regime for external investors
of industrial sector," O.B. No. 52; and
- Law No. 50/III/89 of 13 July, "Basic objectives policies, means and basic instruments and
policies regarding industrial development," O.B. No. 27.
Intellectual Property:
- Law No. 101/III/90 of 20 December, "Stipulates the Copyright law," O.B. No. 52; and
- Law No. 102/III/90 of 29 December, "Establishes the basis of Cultural Property," O.B.
No. 52.WT/ACC/CPV/3
Page 73
Boards Responsible:
- Boards that have already been referred to in sections 1, 2 and 3, namely:
- delegations of the Ministry of Agriculture and their offices in the islands;
- INDP (National Fisheries Development Institute);
- general services of the Ministry of Agriculture and Fisheries and Ministry of Culture;
- General Directors;
- IPC (Institute of Cultural Promotion); and
- Ministries of Infrastructure and Transportation, and Ministry of Agriculture and
Fisheries and Culture.
5. (a) Existing laws, regulations or administra tive guidelines which significantly affect
trade in services
- Laws and Legal Instruments
Agriculture and Fisheries:
- Decree-law No. 62/89 of 14 September, "Leg islative laws regarding animals and cattle
raising," O.B. No. 7;
- Decree-law No. 89/92 of 16 July , "Determines the general basis for quality control over
foodstuffs produced locally, imported or exported," O.B. No. 2;
- Decree-law No. 26/97 of 20 Ma y, "Regulates the imports, trading and utilisation of
phytosanitary products," O.B. No. 19;
- Ministerial -Decree No. 55/97 of 3 November, "Places the imports of certain plants and
plant by-products, subject to previous authorization from the General Directorate of
Agriculture," O.B. No. 34;
- Ministerial -Decree No. 6/2001 of 1 February, "States the applicable sanitation norms
over production and placement of fisheries products onto the market which are designed
for human consumption," O.B. No. 11; and
- Decree-law No. 9/2002 of 11 March, "States th e competences of the Inspection Board of
sanitation control and certification of fisheries products," O.B. No. 7.
Public Post Offices:
- Decree-law No. 93/97 of 31 December,  "App roves the regulatory norms regarding the
services of the Public Posts."
Infrastructures:
- Decree-law No. 31/94 of 2 May,  "Alters the legal task work regime of public services
execution," O.B. No. 17.
Property:  Services Acquisition:
- Decree-law No. 2/97 of 21 June , "Approves the legal regime of property Goods," O.B.
No. 2; and
- All legal regulatory diplomas (Law-decrees) regarding the execution of State Budget.WT/ACC/CPV/3
Page 74
Insurance and Financial Services:
- Law No. 43/III/88 of 27 December, "States the general rules of constitution and
functioning of International Financial Institutions in Cape Verde," O.B. No. 52;
- Law No. 52-E/90 of 4 July, "Regulates the performance services of the banks and credit
activities," O.B. No. 26;
- Decree-law No. 52-F/90 of 4 July, "Regulates  the access to insurance services throughout
the country," O.B. No. 26;
- Decree-Law No. 101-P/90 of 23 November, "Reg ulates the legal statutes of insurance
mediators," O.B. No. 46;
- Decree-law No. 44/94 of 25 July, "Institutionalizes the exchange currency agencies,"
O.B. No. 27;
- Decree-law No. 72/94 of 12 December, "Creates  the venture (risks) capital," O.B. No. 41;
- Decree-law No. 45/95 of 11 September, "State s the legal functioning of the financial
leasing associations," O.B. No. 30;
- Law No. 3/V/96 of 1 July, "States the general rules of constitution and functioning of
banks and financial institutions," O.B. No. 20;
- Law No. 32/V/97 of 30 June, "Alters some law-articles No. 43/III/88 of 27 December
regarding the International Financial Institutions," O.B. No. 25;
- Decree-law No. 66/97 of 3 November, "R egulates the specific conditions of
Authorization, for the constitution or establishment and functioning of International
Financial Institutions in Cape Verde," O.B. No. 42, first Series;
- Decree-law No. 25/98 of 29 Ju ly, "Approves the new Exchange Operation regime," O.B.
No. 23;
- Decree-law No. 26/98 of 29 June, "Approves  the new current and capital operation
regime," O.B. No. 23;
- Notice No. 3/98 of 18 August, "Clarifications regarding the movements of foreign
accounts in escudos, foreign accounts in foreign currency, national accounts in foreigncurrency," O.B. No. 30;
- Notice No. 4/98 of 21 December, "Regulates current and capital operations," O.B. No. 47;
- Decree-law No. 30/2000 of 10 July, "Re-analyzes  the legal exchange agencies regimes,"
O.B. No. 21; and
- Decree-law No. 10/VI/2002 of 15 July, "Approves the organic law of the Bank of Cape
Verde," O.B. No. 21.
Air and Marine Transportation:
- Decree-law No. 26/93 of 1 May,  "Defines and regulates access to the industry of marine
transportation services," O.B. No. 16;
- Decree-law No. 24/93 of 10 May, "Regulates access of marine charter activity," O.B.
No. 16;
- Decree-law No. 51/96 of 26 December, "Regulat es the international shipping registration
services," O.B. No. 44.  Note:  The National Assembly has approved a new law on
International Ship Registration.  It awaits publication in the Official Bulletin and
regulation.  The new law will revoke Decree-Law No. 51/96;
- Decree-law No. 46/98 of 7 Sept ember, "Determines the pre-conditions to be observed by
the entities performing as marine agents," O.B. No. 33; and
- Decree-law No. 126/VI/2001 of 22 January, "Granting of fiscal benefits to the holders of
air transportation," O.B. No. 2.WT/ACC/CPV/3
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Telecommunications:
- Decree-law No. 70/95 of 20 November, "Defines access and service performance of
telecommunications on the value added regime," O.B. No. 40;
- Decree-law No. 72/95 of 20 November, "Def ines the management regime for the
establishment and exploration of the infrastructure and services performance ofcomplementary telecommunications," O.B. No. 40; and
- Decree-law No. 13/96 of 18 Marc h, "Defines the tariffs regime and prices of services
performed exclusively by the operators of public services of post-offices and
telecommunications," O.B. No. 6.
Tourism:
- Decree-law No. 1/92 of 21 Janua ry, "Approves the statutes of hotel related industry,"
O.B. No. 3; and
- Law No. 42/IV/92 of 6 April, "T ourism Utility," O.B. No. 14.
(b) Publications or sources of information concerning measures of general application, of
relevance to the GATS
All laws and legal instruments regarding the services sector have been published in the
Official Bulletins of the Republic of Cape Verde and in notices of the Bank of Cape Verde.
(c) Enquiry points, if any, as foreseen in Article III of GATS
Not available.WT/ACC/CPV/3
Page 76
ANNEX 3
INFORMATION ON IMPORT LICENSING PROCEDURES
The commerce sector in Cape Verde is ruled by the following fundamental principles:
- Free exercise of the economic activities, under the terms of the law;
- Sound competition by the commercial operators;
- Prevention and repression of speculation and restrictive commercial practices;
- Coexistence of public and private commercial operators;
- Promotion of consumers' defense;
- Safeguard and protection of the environment;
- Quality control and protection of public health; and
- Respect for the international accords.
Commercial activity in Cape Verde is exercised by merchants under individual names, and by
commercial enterprises under the terms of and within the limits allowed by law.
The Ministry of the Economy, Growth and Competitiveness is the government department
responsible for defining and executing the great guidelines of the country's economic policy.  More
precisely, the Chamber of Commerce, Industry and Services of Sotavento and Chamber of
Commerce, Industry, Agriculture and Services of Barlavento participate in the licensing ofcommercial wholesale operators.
The municipalities are the licensing agencies for retail commercial activities in their area of
jurisdiction.
The commercial banks assure commercial transactions payments, the Customs service,
through which merchandise enters and leaves the country, and the Economic Activities of GeneralInspection Service, may also be considered interven ing entities in the control of external commerce
operations.
To exercise external commerce activity, it is necessary to obtain prior authorization.  The
government department responsible for commerce has the competence to issue the prior authorization,
but that competence has also been delegated to the Chambers of Commerce, as of January 2000,according to Dispatch 16/99, of 3 January 2000, O.B. No. 1, II Series of 3 January 2000.  To grant the
authorization to exercise the external commerce operator activity, the following requisites must be
fulfilled:
General requisites:
- have commercial capacity;
- not being inhibited from exercising commerce for having declared bankruptcy or
insolvency;
- not having been convicted, in the last five years, for fraudulent crime against property,
public health or the national economy;
- have mandatory minimum academic qualification required;
- in the case of a collective person (e.g., corporation or partnership), have a definitive
registration; and
- compliance with the fiscal obligations.WT/ACC/CPV/3
Page 77
Special requisites for the importer:
- have a minimum capital of CVE5,000,000 committed to the commercial activity;
- own an adequate warehouse for the type of business and volumes pretended; and
- have an accounting system organized according to the national accounting plan, under the
responsibility of an accountant.
Special requisites for the exporter:
The export and re-export operations are free and require no prior authorization.  However, an
export licence is required.  There are no special requisites beyond the general requisites required for
external commerce.  Decree-Law No. 5/99 of 1 February - General basis of the commerce sector
juridical regime, and the Law 92/IV/93 of 15 February, grant special advantages to export and re-
export of goods and services.
Special requisites for importers of staple products:According to Decree-Law 58/98 and Ministeria l Decree 65/98 of 28 December, the staple
foods products import activity that was exclusively done by the Public Stock Provisioning Enterprise
were excluded from the public domain.  The import of such products is now open to private
enterprises.
Decree-Law No. 29/2002 alters the staple food products import regime and requires that the
commercial operator:
- have prior registration to exercise the import activity;
- show proof that they have appropriate installations to store products; and
- show proof that they have the capacity to distribute 30 per cent of the annual import
volume outside the Islands of Santiago and São Vicente.
The commerce sector's new juridical regime, whether for commercial activity or pertaining to
the role of public entities, is defined in Decree-Law No. 5/99 of 1 February.  Article 16 of the same
diploma (law) requires that the import and export operations regime be regulated by Regulamentary
Decree.  The Regulamentary Decree has not yet been prepared.  In the meantime, the licensing
process for commercial activity continues to be regulated through Decree Law No. 58/86 and DecreeNo. 60/86, both of 23 August.
Licensing of import activities is done by Customs Nomenclature sections (SH).  The customs
service uses the Harmonized system nomenclature.  The sections go from  I to XXI and import of the
products described in them is free of quota.  There some exceptions as stated under section IV (e).
An import licence is valid for one year and can be renewed by payment of a renewal fee.  The
fee depends on the nature of the sections contained in the respective licence.
The annual taxes contained in Ministerial Ordinance No. 31/86 of 6 September are due and
payable before a licence to exercise economic activity is granted or renewed.
Merchandise import process in Cape Verde begins with an accord between the buyer/importer
and the seller/supplier.WT/ACC/CPV/3
Page 78
The essential conditions of this agreement must be  in an invoice, generally an estimate.  With
this in hand, the importer fills out the external commerce title12 through his official dispatcher13 and
brings the invoice to the government department responsible for commerce, where the invoice is filled
out promptly.
One copy of the title stays with the government department responsible for commerce and
serves as support documentation to pay the supplier, through a commercial bank.  Another copy goes
to the customs import entity and is needed for the customs clearance process.
For certain agricultural products such as fruits, legumes and for animal products, phyto or
zoosanitary certificates are required, depending on the case, emitted by the responsible official in the
merchandise's country of origin.
List of the import documents required:
- BL or AWB (bill of lading or air way bill) CP, depending on whether the merchandise
was shipped by sea or air or postal parcel – proof that the merchandise was shipped;
- certificate of origin, when required;
- Zoo or phytosanitary certificates, for agricultural products or products of animal origin;
- estimate (not mandatory) – required to obtain the external commerce title, should it be
necessary to pay the supplier or for customs clearance;
- applies when the importer has not yet received the definitive invoice;
- definitive commercial invoice – fundamentally, for the purpose of customs clearance and,
eventually, to obtain the external commerce title and consequently, to pay the supplier
through the bank, in cases when the title was not issued with the estimate; and
- Other documents as may be required (See Section IV.(f), Licensing Procedures for
Commercial Enterprises).
There are special formalities to  comply with in the import of food products.  The food and
pharmaceutical products exported to Cape Verde must abide by certain international norms of
salubrity.  It is also mandatory that imported products contain the date of manufacture and the validity
period, as well as their composition, trademark and fabricant's name, when such information isjustified.  The information must be presented in the Portuguese, French or English languages.
The agricultural products or products of animal origin must be accompanied by a certificate
of origin.  Based on this certificate, the competent national authorities will issue a declaration to
indicate that the products do not constitute risks to introduce plagues or epidemics in Cape Verde that
may cause damages to agriculture and livestock development.
                                                     
12 The external commerce title emitted for the import of merchandise is referred to as the ID – Import
Declaration.  This is the support document for both the payment to the supplier through the Bank and forcustoms clearance.
13 The official dispatcher is a customs technician with  a special status, legally authorized to mediate the
process to clear merchandise from the customs.  The dispatcher receives a percentage of the value of the
dispatch to be processed.WT/ACC/CPV/3
Page 79
ANNEX 4
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION
OF THE CUSTOMS VALUATION AGREEMENT
Cape Verde is not a signatory of the Accord on Application of Article VII of the General
Accord on Tariff Tables.
Cape Verde's Customs apply the Brussels Value Definition (BVD), by force of the provisions
of articles 4 through 8 of the Preliminary Instructions of the Import Tables approved by Decree
No. 45.790, of 3/7/60.
Nevertheless, they explain in a clear and object ive fashion the questions and/or issues referred
in Annex 4, according to the BVD.  In relation to sp ecific questions they state that they do not apply
the Accord on Application of Article VII on the General Accord about the Trade Tables.
1. Questions concerning Article 1:
(a) Sales between related persons
(i) Are sales between related persons subject to special provisions?
No, as long as the calculations made obey the conditions required for the determination of
normal price and do not create doubts regarding the exactness of the elements supplied.
(ii) Is the fact of intercompany prices prima facie considered as grounds for
regarding the respective prices as being influenced?
No restriction on ceding or utilisation of merchandise by the buyer is allowed if either
influences the conditions of full competition.
(iii) What is the provision for giving the communication of the afore-mentioned
grounds in writing if the importer so requests?  (Article 1.2(a)).
Under the terms of Article 6 of the Import Tables Preliminary Instructions, the importer is
always notified in writing of the customs administration's position on questions of valuation surfacing
during the verification and/or reverification of the merchandise dispatch declarations.
(iv) How has Article 1.2(b) been implemented?
The provisions of Article 1.2(b) of the GATT Accord on customs valuation are not in effect in Cape
Verde.  However, the fact that a buyer and a seller are connected does not constitute sufficient reason
to consider the transactional value as unaccepta ble. The value must be examined and, unless the
customs have information that such is not the case, this transactional value is used to determine the
customs value.
(b)  Price of lost or damaged goods:
Are there any special provisions or practi cal arrangements concerning the valuation of
lost or damaged goods?
The provisions of Article 1 of the GATT Accord on customs valuation are not applicable.  In
relation to the deteriorated merchandise the customs services may authorize the separation of theWT/ACC/CPV/3
Page 80
merchandise that, in the same shipment, has suffered damage that reduces the value it would have in
good condition and that may have occurred from the time the trip was initiated to the moment of the
detailed declaration.
The deteriorated merchandise is granted abatements in duties, proportional to the difference
between the value of the same merchandise in the act of dispatch and its value in good condition.However, to grant the abatement, it is indi spensable that the damage exceeds 25 per cent.
In the case of abandonment, when dealing with drugs or medicinal substances, the
merchandise must be immediately destroyed, with a certificate prepared for the witnesses and the
formalities established for similar cases.
In the remaining cases, the merchandise must be immediately destroyed or re-exported.
2. How has the provision of Article 4 to allow the importer an option to reverse the order
of the application of Articles 5 and 6 been implemented?
The Brussels Definition of Value does not foresee the order of application of articles 5 and 6
contained in Article 4 of the Accord on the application of Article VII of the General Accord on Trade
Tables – GATT.
3. How has Article 5.2 been implemented?
The Brussels Value Definition – BDV does not foresee the provisions contained in Article 5
of the Accord on the Application of Article VII of the General Accord of Trade Tables – GATT.
4. How has Article 6.2 been implemented?
The Brussels Value Definition – BVD does not foresee the provisions contained in Article 6.2
of the Accord on the application of Article VII of the General Accord on Trade Tables – GATT.
5. Questions concerning Article 7
(a) What provisions have been made for making value determinations pursuant to
Article 7?
The Brussels Value Definition - BVD does not fo resee the provisions contained in Article 7
of the Accord on the application of Article VII of the General Accord on Trade Tables.
(b) What are the provisions for informing the importer of the customs value determined
under Article 7?
There are no provisions of this nature in effect in Capeverdean legislation.  However, the
referred provisions shall be introduced when the valuation regime is revised in conformity with the
provisions of the GATT Accord on customs valuation.
(c) Are the prohibitions found in Article 7.2 delineated?
The provisions of Article 7.2 are not covered by existing legislation.  However, they will be
introduced in the revision of the Cape Verde's Customs Valuation regime.
6. How have the options found in Article 8.2 been handled?  In the case of f.o.b.
application, are ex-factory prices also accepted?WT/ACC/CPV/3
Page 81
The provisions of Article 8.2 are not applicable.
7. Where is the rate of exchange published, as required by Article 9.1?
The provisions are not contained in Article 848 of the new writing of the Customs
Organizational Statutes, given by Decree No. 155/87.
The provisions of Article 9.1 of the GATT Accord on Valuation are not applicable in Cape
Verde.
The exchange rate is published by the Bank of Cape Verde (Central Bank) and can be
obtained in person or solicited by telephone or fax.
When the elements retained to determine the no rmal price are expressed in foreign currency,
the conversion is set for the period running from one Thursday to the following Thursday, based on
the exchange rate in effect on Thursday that preceded the week under consideration.
If during the week in which the official quotes are valid there are significant exchange
variations, the Customs General Director may authorize the use of the most up to date quotes of the
affected currency or currencies.
In case of a holiday or equivalent at the lo cation where the Central Bank of Cape Verde's
main office is located, the official quotes of the immediately preceding Wednesday are taken in
consideration.
8. What steps have been taken to ensure confidentiality, as required by Article 10?
The provisions of Article 10 of the Customs Valuation Accord are not applicable in Cape
Verde.
In the relationships that Capeverdean Customs establish with the users of customs' services
the provisions of the personnel regulations and of the official secrets cover all the documents andservices of this type.  In the framework of the customs personnel regulation, customs personnel are
prohibited from revealing confidential information except in the case of a judicial or criminal
investigation
9. Questions concerning Article 11:
(a) What are the rights of appeal open to the importer or any other person?
The provisions of Article 11 of the Customs Valuation Accord are not applicable in Cape
Verde.
In the event of litigation, complaints relative to customs investigation, origin, value, in
general, any taxes or duties whose collection is the Customs' responsibility, that arise between the
importers and the customs' functionaries are resolved by the Customs' Technical Board (an
administrative body that integrates representatives of the public administration and of the private
sector) with the right of recourse to the Supreme Court of Justice.
(b) How is he to be informed of his right of further appeal?
The provisions of Article 11 of the Customs Valuation Accord are not applicable.WT/ACC/CPV/3
Page 82
The repeat offender is informed through a juridical process and by means of his/her legal
representative.
10. Provide information on the publication, as required in Article 12 of:
i) the relevant national laws
The provisions of Article 12 of the GATT Accord on Valuation are not applicable.
Capeverdean Laws are published by the Government and made available to the public.  The
same only go into effect after they are published in the Official Bulletin.
 ii) the regulations concerning th e application of the Agreement
Because of the fact that the GATT Accord on Valuation is not in effect in Cape Verde, there
are no regulations pertaining to their application.
iii) the judicial decisions and administrative rulings of general applications relating
to the Agreement
They do not exist for the same reason that the GATT Accord on Valuation is not in effect in
Cape Verde.
iv) general or specific laws being referred  to in the rules of implementation or
application.
They do not exist
(b) Is the publication of further rules anticipated?
Only after the Brussels Value Definition – BVD is replaced by the GATT Accord on Customs
Valuation will it be known which rules and issues must be legislated and published.
11. Questions concerning Article 13.
(a) How is the obligation of Article 13  (las t sentence) being dealt with in the respective
legislation?
The provisions of Article 13 of the GATT Accord on Valuation are not applicable in Cape
Verde.
As long as the Customs dispose of all the elements necessary to the evaluation of a customs'
technical litigation, the importer (contestant) may remove the contested merchandise that are notprohibited, as long as they have guarantee of the major duties and other impositions.
(b) Have additional explanations been laid down?
No.
12. Questions concerning Article 16.
(a) Does the respective national legislatio n contain a provision requiring the customs
authorities to give an explanation in writing as to how the customs value was
determined?WT/ACC/CPV/3
Page 83
The customs functionaries are obligated to justify the positions they assume in the protests
over values contained in the merchandise dispatch declarations and of informing the official
dispatchers of the fact, immediately, and in writing.
(b) Are there any further regulations concerning the above-mentioned request?
There are none.
13. How have the Interpretative Note s of the Agreement been included?
The GATT Accord on Customs Valuation, as well as the interpretation notes are not in effect
in Cape Verde.  However, they shall be included in the national legislation when the Accord on
Customs Valuation is adopted in conformity with the WTO recommendations.
14. How are the provisions of the Decision of 26 April 1984 on Treatment of Interest
Charges in Customs Value of Imported Goods (Val/6/Rev.1) been implemented?
The provisions of the April 26 Decision, relative to the treatment of interests on the
determination of the customs' value of imported merchandise, are not applicable in Cape Verde.
The amount of the interests is excluded from the list of elements to be taken into account in
determining the customs value.
The interests for deferred payments must not be taken into consideration because their
inclusion in the value would lead to taking a higher price than the prompt payment price as basis fordetermining the customs' value.
15. For those countries applying paragraph 2 of the Decision of 24 September 1984 on the
Valuation of Carrier Media Bearing Softwa re for Data Processing Equipment (Val/8),
how have the provisions of this paragraph been implemented?
The provisions of the 24 September Decision on the valuation of the Carrier Media Bearing
Software is not applicable in Cape Verde.
Note:  Cape Verde is a small insular country without raw materials and week natural
resources, with an incipient industry, totally dependent on the outside.
Thus, the customs duties assume a particular importance for the State because they are its
most important source of revenue; more than 50 per cent of the ordinary revenues for the State'sGeneral Budget come from collecting customs' duties and other impositions and taxes collected by the
Customs and more than 90 per cent of the indirect taxes.
In calculating the customs' duties and other customs' impositions Capeverdean Customs
utilise the Brussels Value Definition, which is to say, in the imports it use the CIF value and in the
exports the FOB value.
However, some fiscal evasion has been verified, namely, the deviation of duties caused by
undervaluing imported merchandise.
Other forms of fraud begin to surface, and it is difficult to fight them in the face of the
fragility of the customs services in knowledge and information structure, making it necessary to seek
technical and institutional reinforcement.WT/ACC/CPV/3
Page 84
The change from the Brussels Value System to  the GATT shall have notable implications in
fighting fraud and fiscal evasion and may negatively influence the collection of revenue if measures
are not taken to reduce these risks, namely the technical assistance on the part of the developed
countries, the reinforcement of the information stru cture and the structures of combat to fraud and
fiscal evasion and the deferment for a period of 5 (five) years of the provisions of the Agreementconcerning the application of Article VII of the GATT after Cape Verde's accession to the World
Trade Organization – WTO, in the ambit of special and differentiated treatment granted to the LDC of
which Cape Verde is one.
The industrial and commercial enterprises established in Cape Verde are, for the most part,
branches of parent organizations with main offices outside of Cape Verde.
The under billing practiced by these enterprises begins to have repercussions on revenue
collection reason why it becomes necessary to grant technical assistance to Cape Verde and to trainCustoms functionaries assigned to the Anti Fraud Department, and in the preparation of legislation
and regulations necessary to implement Article VII of the Accord on Trade Tables.WT/ACC/CPV/3
Page 85
ANNEX 5
INFORMATION ON TECHNICAL BARRIERS TO TRADE
1. Description of relevant laws, regulations, administrative orders, etc. relating to
implementation and administration of technical barriers to trade. All necessary
references should be provided.
Cape Verde has no laws, regulations, administrative orders, etc. relating to technical barriers
to trade.
2. Information regarding:
(a) names of publications, if any on work relating to draft technical regulations or
standards and procedures;
None.
(b) the name and address of the enquiry point(s) foreseen in Articles 10.1 and 10.3 of the
WTO Agreement on Technical Barriers to Tr ade (the Agreement) with an indication as
to whether it is/they are fully operational
Abraao Andrade Lopes
Director General of Industry and Energy
Cidade da PraiaC.P. No. 164/A
Republica de Cabo Verde
Telephone (238) 60 76 31/32
Cell phone (238) 92 41 64
Fax:           (238) 61 36 59E-mail:       Abraol@gov1.gov.cv
As this time, the enquiry point office is not fully operational.
(c) the name and address of agencies dealing with consultations as foreseen in Article 14 in
the Agreement
Director General of Industry and Energy, same coordinates as above.
(d) the name and address of agencies that are dealing with other specific functions foreseen
in the Agreement
At this time there are none.
(e) the scope of responsibility of the cen tral government authorities in the area of
notification requirements foreseen in Articl e 10.11 of the Agreement and of individual
government authorities, if the responsibility is divided among two or more such
authorities
Director General of Industry and Energy, same coordinates as above.WT/ACC/CPV/3
Page 86
(f) measures and arrangements to ensure that national and sub-national authorities
preparing new technical regulations or substa ntial amendments to existing ones provide
early information on their proposal.
The Minister of Economy, Growth and Competitiveness was designated by the Government
of Cape Verde as the person in charge of WTO accession and WTO matters.  A WTO Working Party
was formed under the direction of the Minister's office.  Until a formalized WTO structure or
organization is created, the Director General of Commerce would be the person responsible for
providing notifications and early information on proposals.WT/ACC/CPV/3
Page 87
ANNEX 6
INFORMATION ON STATE-TRADING
- Definition of State-Trading
Governmental and nongovernmental enterprises, including marketing boards, which have
been granted exclusive or special rights or privile ges, including statutory or constitutional powers, in
the exercise of which they influence through their purchases or sales the level or direction of imports
or exports.
Questionnaire on State-Trading
I. ENUMERATION OF STATE-TRADING ENTERPRISES1. Does your country maintain enterprises cov ered by the provisions of Article XVII?  If
so, list the products or groups of products for which State enterprise is maintained or
for which an enterprise has exclusive or special privileges.
As noted in section IV.3(e), Cape Verde has privatized almost all of its State-trading
enterprises.  The sole remaining State enterprise in Cape Verde (within the meaning of Article XVII)
is EMPROFAC, an entity created to import and distribute pharmaceuticals.
II. REASON AND PURPOSE FOR INTRODUCING AND MAINTAINING STATE-
TRADING ENTERPRISES
1. State for each product the reason and purpose for introducing and maintaining the
enterprise (it should be indicated, for exampl e, whether the purpose or the effect of the
enterprise is to prevent prices to consum ers from exceeding certain maximum limits, or
to protect domestic producers by the control of imports and/or the purchase of domestic
supplies at above world price levels, or to facilitate export sales, or to make it possible toestablish or administer a stabilization arrangement).  A description of the legal
provisions should be included in so far as this has not been submitted in earlier
notifications.
Cape Verde is a least developed country with a limited market and a population with limited
resources to purchase medicines.  The Government created EMPROFAC to ensure Cape Verdeancitizens have access to basic medicines.
III. DESCRIPTION OF THE FUNCTIONING OF STATE-TRADING ENTERPRISES
1. Describe, item by item, the functioning of  such enterprises and state in particular;
- Whether the enterprise deals with exports or with imports, or both;
- Whether private traders are allowed to import or export and, if so, on what
conditions;
- Whether there is free competition between private traders and the State-trading
enterprise;
- The criteria used for determining the quan tities to be exported and imported;
- How export prices are determined; How the mark-up on imported products is
determined; How export prices and the re-sale prices of imports compare with
domestic prices;WT/ACC/CPV/3
Page 88
- Whether long-term contracts are negotiated by the State-trading enterprise;
Whether State-trading methods are used to  fulfill contractual obligations entered
into by the government.
EMPROFAC has exclusive authority to import pharmaceuticals, which it sells through an
intermediary to hospitals and the Directorate-General of Pharmacy, an agency within the Ministry ofHealth.  EMPROFAC determines the quantity of produc ts to be purchased and applicable prices on a
yearly basis according to past history and in consultation with the Directorate-General of Pharmacy
and other purchasers.  While EMPROFAC does not have any long-term contracts, it generally uses
the same suppliers each year.
IV. STATISTICAL INFORMATION
1. Furnish statistics (where possible by quantity and value) of imports, exports and
national production on the products notified, on the following lines:
(a) figures should cover th e last three available years;
(b) figures for the three groups (imports, expo rts and national production) should be given,
whether possible, in a comparable form;
(c) figures should be broken down so as to show:
(i) trade by the enterprise;
(ii) other trade.
EMPROFAC Imports
Years Value of imports (CVE)
1999 505,120,500
2000 602,285,000
2001 588,614,520
V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (IF THIS IS THE
CASE) IN PRODUCTS AFFECTED
1. In cases where no foreign trade has taken place in the products affected, state the
reasons.
Not applicable.
VI. ADDITIONAL INFORMATION
1. Provide any additional information that may be appropriate.
None.WT/ACC/CPV/3
Page 89
ANNEX 7
SERVICES SECTORAL CLASSIFICATION LIST
I. BUSINESS SERVICES1. Professional Services
(a) Legal Services
Lawyers practicing in Cape Verde must have completed a legal degree ("diploma") and have
registered with the Order (a Lawyer's Association).  Membership in the Order is reserved to citizens,
thus foreign nationals may not practice as lawyers in Cape Verde.  The only exception is for nationals
of The Community of Countries with Portuguese as  the Official Language (Comunidade de Países de
Língua Oficial Portuguesa or CPLP).  CPLP na tionals who are Cape Verde residents may practice
here.  Foreign nationals may, however, provide legal consulting services in both the private and public
sectors through project-based or term contracts.  There are no restrictions on foreign investment inenterprises in this sector.
 (b) Accounting, auditing and bookkeeping services
Accountants must be registered with the General Directorate of Contributions and Taxation in
the Ministry of Finance and Planning.  They must be academically qualified in accounting or
management and have permanent residence status in Cape Verde (Decree-law No. 37/92 of 16 April).
There are no restrictions on foreign investment in this area, and a number of foreign accounting
services have offices in Cape Verde.
(c) Veterinary Services
There are no restrictions on practicing veterinary medicine, but the sale of vaccines, chemical
products and other substances utilised in providing veterinary care is regulated.  Drugs are importedexclusively by EMPROFAC, a public enterprise, a ccording to an approved list published by the
Government (permission may be granted to import non-listed drugs in exceptional cases of medical
need).  There are no veterinary clinics in Cape Verde, and neither hospitals nor laboratories provide
veterinary care.  The Ministry of Agriculture provides veterinary services for the public sector, and
technicians (typically government employees who freelance) provide this service to the private sector.
2. Computer and Related Services
There are no restrictions on foreign investment or participation in this sector, and there are
currently a small number of private enterprises in the market.
4. Real Estate Services
There are no restrictions on foreign investment or participation in this sector.  The
Government recently divested the Homebuilding Foment Institute, a public construction and leasing
enterprise, of its monopoly rights to provide real estate services.  There are currently many privatereal estate enterprises in Cape Verde.WT/ACC/CPV/3
Page 90
5. Rental/Leasing Services Without Operators
There are no restrictions on foreign investment or participation, but services in this sector are
practically non-existent.  There are two foreign enterp rises providing aircraft leasing services in Sal
(Cabovim and Air Lux).
6. Other Business Services
(a) Advertising services
There are no restrictions on foreign investment or participation, but the sector is not yet very
important.  There are currently two publicity enterprises in Cape Verde's capital.  Publicity services
are regulated by Decree-Law No. 32/94 of 9 May, which established the Publicity Code.
(b) Market research and public opinion polling services
There are no restrictions on foreign investment or participation in this sector.  Private
consultancy offices, consisting mostly of freelance public employees, provide this service.  There area number of non-resident foreign suppliers in the market, principally from Portugal.
(c) Services related to management consultancy
There are no restrictions on foreign investment or participation in this sector.
(l) Investigation and security
There are no restrictions on foreign investment or participation in this sector, and there are
already a number of private security enterprises in Cape Verde.   Decree-Law No. 74/94 of 27
December defines and regulates conditions for the exercise of this service.
(o) Building-cleaning services
There are no restrictions on foreign investment or participation in this sector, and the sector is
almost completely privatized.  Janitorial service, even largely to public enterprises and ministries, areprovided by the private sector.
(p) Photographic services
There are no restrictions on foreign investment or participation in this sector, but there are
few professionals offering such services.
(r) Printing, publishing
The National Printing Office (Imprensa Nacional) – a state enterprise – provides printing and
publishing services, as do a number of private enterprises.  Although there are no restrictions on
foreign investment or participation in this sector, there are currently no foreign services providers in
the market.  Cape Verde consumers sometimes refer their projects internationally, principally to
service providers in Brazil.
(s) Convention services
Restaurants and other private entities provide convention service, and the sector is largely
unregulated.  There are no restrictions on foreign investment or participation.WT/ACC/CPV/3
Page 91
II. COMMUNICATION SERVICES
1. Postal services
Correios de Cabo Verde provides postal service to Cape Verde's Islands.  CCV has 56 postal
stations that perform all types of postal operations.  In addition to mail service, CCV also provides
parcel and express service, as well as third party services (i.e. bill collection, pension payments andCredit Union services).   CCV remains a public enterprise, but the Government has outsourced its
day-to-day management to a private enterprise.
There is at least one private enterprise in the postal service market; EMS provides similar services to
CCV.  DHL Worldwide Express has established international express mail operations in Cape Verde.
III. CONSTRUCTION AND RELATED ENGINEERING SERVICES
See Section VI.1(b).
IV. DISTRIBUTION SERVICES
Distribution services in Cape Verde are divided into three categories: sales in agricultural
products, consumer products (mostly imports), and manufactured products and footwear.  Agricultural
products are sold directly by farmers to retailers, who in turn sell them to itinerant merchants.  A
minority of imported consumer goods is distributed through wholesalers, but for the most part
individual establishments import and sell their goods, acting as both wholesaler and retailer.  CapeVerde lacks large retail stores, and most sales are conducted through small grocery stores, mini-
markets or itinerant merchants.   Manufactured products and footwear are usually destined for export
or are sold directly to duty-free enterprises within Cape Verde.
Legislative Decree No. 3/99 of 29 March regulates distribution services, and there are no
restrictions on foreign investment or participation in this sector.
VII. FINANCIAL SERVICES
See Section VI.1(e).
VIII. HEALTH AND SOCIAL SERVICES
1. Hospital services
Since independence in 1975, Cape Verde has made significant progress in providing basic
health care to its population.  The national health budget is one of the largest in Africa, and the
Government's efforts are meeting with some success.   In the 1990s the country presented satisfactory
health indicators (children's vaccination coverage of 90 per cent), but the subsequent appearance of
certain illnesses demonstrates the sector's fragility.
Health care in Cape Verde is generally free, although patients pay a moderate fee on
admission.
There are two central hospitals that are independently managed with 68 national doctors,
38 foreign doctors and 123 nurses; both hospitals were recently renovated and enlarged.  There are 3
regional hospitals, 19 sanitary centers, 22 health and 105 sanitary base units.  In total, there are 152
health units, 163 national and foreign doctors and 263 nurses.WT/ACC/CPV/3
Page 92
With a growing population, and in view of th e Government's economic liberalization policy,
Cape Verde has encouraged private enterprises to increase their participation in this sector.  Private
sector service providers benefit from a few fiscal and customs incentives that are renewed annually in
the State Budget.
The Ministry of Health responsible for health regulates health care providers, and Law
No. 95/III/90 of 27 October, regulates health-related activities (except for the importation of generic
drugs and pharmaceuticals specialty).  Health care providers and establishments must register their
technical personnel and obtain a licence to operate from the government department responsible for
health.  Ministerial Decree No. 8/92 of 21 January establishes licensing procedures for health care
establishments.  The General Directorate may refuse to grant a licence for failure to meet applicable
requirements, in which case the applicant may appeal to the Ministry of Health, and subsequently to a
court of law.
The Cape Verdean Medical Order was created recently, and it is reserved to national doctors.
Foreign doctors may nevertheless practice in Cape Verde under certain terms.  For example, nationals
of countries with which Cape Verde has a cooperation agreement may practice in-country, as may
doctors who have worked for three years in Cape Verde's public health service.  The Ministry of
Health may also determine that Cape Verde needs a specific medical specialty, in which case doctorspracticing in that area may be admitted.  In all instances, foreign medical providers must be well-
educated and have good proficiency in Portuguese.
IX. TOURISM AND TRAVEL RELATED SERVICES
See Section VI.1(c).WT/ACC/CPV/3
Page 93
ANNEX 8
LIST OF FOREIGN TRADE AGREEMENTS
A. List of Foreign Trade Agreements
Annex 8 A is a listing of Cape Verde Foreign Trade Agreements.
B. List of Trade Agreements or parts of them, which contain preferential trade provisions,
indicating by HS (2 digit) the tariff lines  involved, the margin of preference granted,
reciprocity provisions and details of any other preferential treatment.
Cape Verde does not have any preferential trade agreements.WT/ACC/CPV/3
Page 94ANNEX 8A
LIST OF CAPE VERDE'S FOREIGN TRADE AGREEMENTS
Cape Verde's Foreign Trade Agreements
Country/Organization Type Domain Title Signed Approval
Angola Bilateral Commercial Commercial and Paymen ts Accord 15 December 1976 DFL No. 4/77 OB No. 6 of
5 February 1977
Angola Bilateral Commercial Additional Protocol to the Commercial and
Payments Accord27 October 1978
Angola Bilateral Commercial Commercial Accord 15 October 1980
Angola Bilateral Commercial Commercial Accord 11 September 1997 Dec No. 22/97 OB No. 41 of
27 October 1997
Brazil Bilateral Commercial Commercial Accord
Brazil Bilateral Commercial Accord by exchange of notes relative to the
provisionary application of the Article
Bulgaria Bilateral Commercial Commercial Accord 11 June 1985
Cuba Bilateral Commercial Commercial Accord 18 December 1985 Dec No. 79/86, OB No. 44 of
1 November 1986
Cuba Bilateral Commercial Protocol 30 March 1987 Dec No. 105/87, OB No. 42 of
17 October 1987
Cuba Bilateral Commercial Commercial Accord 1987
Cuba Bilateral Commercial Cooperation Protocol between the Chambers
of Commerce of Cuba and Cape Verde9 September 1996
Cuba Bilateral Commercial Accord on the liquidation of the balance
resulting from the Protocol9 September 1996
Guinea-Bissau Bilateral Commercial and
CustomsCommercial and Customs Cooperation
Accord26 June 1976 DFL No. 21/76, 27-11-76, OB No. 48
Guinea-Bissau Bilateral Commercial Commercial Accord Protocol 26 November 1995 Dec No. 4/96,  OB No. 18 of
17 June 1996
Guinea-Conakry Bilateral Commercial Commercial Accord 12 April 1980
Guinea-Conakry Bilateral Commercial Protocol on Exchange Possibilities in 1980 19 July 1980
Morocco Bilateral Commercial Commercial Accord 16 December 1996
Mauritania Bilateral Commercial Commercial Accord 28 February 1978
Mozambique Bilateral Commercial Commercial Accord 28 October 1980 Dec No. 82/84, OB No. 33 of
18 August 1994
Portugal Bilateral Commercial Commercial Accord 20 April 1980WT/ACC/CPV/3
Page 95Country/Organization Type Domain Title Signed Approval
Portugal Bilateral Commercial Addendum to Protocol on Commercial
Accord of 8-6-78?21 January 1977
Russia Bilateral Commercial Commercial Accord 9 December 1977
Sao Tome and Principe Bilateral Commercial Commerc ial Accord 19 December 1976 DFL No. 5/77, OB No. 6 of
5 February 1977
Senegal Bilateral Commercial Commercial Accord 12 March 1998 Dec No. 1/98 of 21 September 1998,
OB No. 18
China Bilateral Commercial Commercial and Economic Cooperation
AccordMay 1998
ECOWAS Multilateral Commitment Constitutive Declaration of West Africa
Compensation Chamber (Adhesion)0-0-0 ??? Law No. 55/IV/92 (OB No. 19) o f
5 October 1992
ECOWAS Multilateral Commitment Protocol A/P 1/7/93 relative to the Creation of
the West Africa Monetary Agency24 July 1993 Resolution No. 36/V/96 (OB No. 44-
sup) of 30 December 1996
ECOWAS Multilateral Commitment Economic Community of the West African
States Treaty28 May 1975 D.F.L. No. 2/81 (OB No. 6-5ºsup) o f
11 February 1981
ECOWAS Multilateral Commitment Constitution of the West and Central African
Port Management Association26 February 1977
ECOWAS Multilateral Commitment Additional Protocol with amendments to the
Protocol on the definition of the notion of
Products originating in ECOWAS MemberStates AS A/SP 1/5/7929 May 1979 Dec. No. 71/85 (OB No. 26) o
f
29 June 1985
ECOWAS Multilateral Commitment Additional Protocol with   modification to
Article 8 of the Protocol relative to thedefinition of the notion of Products originatingin ECOWAS Member States (regime
applicable to the mixtures)28 May 1980 Dec. No. 70/85 (OB No. 26) o
f
29 June 1985
ECOWAS Multilateral Commitment Additional Protocol A/SPI/5/81 modifying
art.2º of the Protocol on definition of thenotion of Products originating in MemberStates of the ECOWAS29 May 1981 Dec. No. 73/85 (OB No. 28) o
f
13 July 1985
ECOWAS Multilateral Transportation Convention relative to the Road Transit of
merchandise inter –Member States of theECOWAS29 May 1982 Dec. No. 72/85 (OB No. 26) o
f
29 June 1985
ECOWAS Multilateral Customs Convention on Mutual Administrative
Assistance on Customs Matters - A/P5/5/8229 May 1982 Dec. No. 74/85 (OB No. 28) o f
13 July 1985WT/ACC/CPV/3
Page 96Country/Organization Type Domain Title Signed Approval
ECOWAS Multilateral Insurance Protocol A/P1/5/82 on the creation of the
ECOWAS Brown Letter on automobile CivilResponsibility Insurance vis-à-vis third parties29 May 1982
ECOWAS Multilateral Communiqué ECOWAS evaluation mission in Member
States – Member State: Cape Verde/workgroup report, Transportation, Tele-
communications, Energy and other projects21 March 1983
ECOWAS Multilateral Economic Protocol A/P1/11/84 relative to Community
Enterprises in the ambit of the ECOWAS23 November 1984
ECOWAS Multilateral Fiscal Convention A/P1/7/85 relative to Temporary
Import of personnel transport vehicles inECOWAS Member States.6 July 1985 Law No. 32/IV/91 (OB No. 52-4ºsup.)
of 30 December 1991
ECOWAS Multilateral Transportation Additional Convention A/SP.1/5/90 that
institutes in the Community a Mechanism ofGuarantee of inter-States Road Transit ofMerchandise30 May 1990
ECOWAS Multilateral Commitment Treaty instituting the African Economic
Community3 June 1991 Law No. 56/IV/92 (OB No. 16) o f
23 October 1992
ECOWAS Multilateral Commitment Protocol A/P.1/7/93 relative to West African
Monetary Agency in the ambit of ECOWAS.24 July 1993
ECOWAS Multilateral Commitment Revised ECOWAS Treaty 24 July 1993 Resolution No. 115/V/95 (OB No. 37-
5ºsup) of 3 November 1995
ECOWAS Multilateral Fiscal Protocol A/P.1/7/96 relative to the Application
of the ECOWAS Community Tax27 July 1996 Resolution No. 67/V/97 (OB No. 50-
2ºsup.) of 31 December 1997
ACP-EU Multilateral Commitment Partnership Accord between the African
States, the Caribbean and Pacific States andEuropean Community Member States.23 June 2000 Resolution No. 17/VI/2001 B.O No. 18
- I Series of 18 July 2001
OAS Multilateral Commitment Treaty to Create the African Economic
Community3 June 1991 Law No. 56/IV/92 (OB No. 16-sup.) o f
23 October
Germany Bilateral Investment Investment Promotion and Reciprocal
Protection Accord15 January 1990 29 December 1990, Dec. No. 171/90
OB.º52 –sup
Germany Bilateral Investment Protocol to the Investment Promotion and
Reciprocal Protection Accord18 January 1990
Angola Bilateral Investment Investment Promotion and Reciprocal
Protection Accord11 September 1997 Dec. No. 27/97 OB No. 41 of
27 October 1997
Austria Bilateral Investment Accord relative to the Foment and the
Protection of Investments3 September 1991 Dec. No. 13/92, OB No. 4 of
25 January 1992WT/ACC/CPV/3
Page 97Country/Organization Type Domain Title Signed Approval
China Bilateral Investment Investment Promotion and Reciprocal
Protection Accord27 April 1998
China Bilateral Investment Accord relative to Encouragement of and
Investment Reciprocal Protection27 April 1998
Cuba Bilateral Investment Investment Promotion and Reciprocal
Protection Accord22 May 1997 Dec. No. 6/98 OB No. 36 of
28 September 1998
Italy Bilateral Investment Investment Promotion and Reciprocal
Protection Accord12 June 1997
The Netherlands Bilateral Investment Investment Promotion and Reciprocal
Protection Accord11 November 1991 Dec. No. 62/92, OB No. 22
Portugal Bilateral Investment Investment Promotion and Reciprocal
Protection Accord26 October 1990 Dec. No. 107/91 OB No. 36 o f
7 September 1991
Russia Bilateral Investment Investment Promotion and Reciprocal
Protection Accord1994
Switzerland Bilateral Investment Accord relative to Investment Promotion and
Reciprocal Protection28 October 1991 OB No. 3 of 18 January 1992
__________