RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/AND/8
7 August 2000
(00-3230)
Working Party on the
Accession of AndorraOriginal:  French
ACCESSION OF THE PRINCIPALITY OF ANDORRA
Additional Questions and Replies concerning the Memorandum
on the Foreign Trade Regime1
The Permanent Mission of the Principality of Andorra has communicated its replies to the
questions raised by Members.  The questions and replies are reproduced below.
__________________
Table of Contents
Questions Page
II. ECONOMY , ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic policies
(a) Main directions of economic policies 1-3 1
(d) Foreign and domestic investment policies 4 2
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE
1. Powers of the executive, legislative and judicial branches of
government 5-6 2
3. Division of authority between central and sub-central forms of
government7-8 3
4. Any legislative programmes or plans to change the regulatory
regime 9 3
6. Description of tribunals 10 6
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import regulation
(a) Registration requirements for engaging in importing 11-19 7
(b) Characteristics of national tariff 20-25 11
(d) Other duties and charges 26 13
                                                     
1 WT/ACC/AND/3.WT/ACC/AND/8
Page ii
Questions Page
(e) Quantitative import restrictions, including prohibitions, quotas and
licensing systems 27-30 13
(f) Import licensing procedures 31-33 21
(h) Customs valuation 34 22
(k) Application of internal taxes to imports 35-40 22
(i) Rules of origin 41-43 32
(m) Anti-dumping regime
(n) Countervailing duty regime 44-49 34
(o) Safeguard regime
2. Export regulation
(h) Import duty drawback schemes 50 36
3. Internal policies affecting foreign trade in goods
(a) Industrial policy, including subsidy policies 51 36
(b) Technical regulations and standards, including measures taken at
the border with respect to imports 52-55 37
(c) Sanitary and phytosanitary measures, including measures taken
with respect to imports
(d) Trade-related investment measures 56-58 38
4. Policies affecting foreign trade in agricultural products 59-60 39
(a) Imports 61-63 39
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 64-70 42
VI. TRADE-RELATED SERVICES REGIME 72-75 44WT/ACC/AND/8
Page 1
II. ECONOMY,  ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic policies
(a) Main directions of economic policies
Pricing
Question 1.
We would like to see the information on price controls in the response to question 2 in
WT/ACC/AND/5 included in the draft WP report.
Reply:
A copy of the decrees establishing the latest prices of the products controlled will be
forwarded to the Secretariat.
Question 2.
In addition, we seek a standard commitment for the WP report that all other prices in
Andorra are determined by the market, and that in the application of these or other State price
or profit controls or price guidance, now or in the future, Andorra will apply such measures in a
WTO-consistent fashion, and take account of the interests of exporting WTO Members as
provided for in Article III:9 of the GATT 1994.
Reply:
All the prices of other goods and services not covered by the reply to question 2 of document
WT/ACC/AND/5 are determined by the market.  With respect to the goods and services whose prices
are or will be controlled, Andorra undertakes to fulfil the requirements of Article III:9 of the
GATT 1994.
Question 3.
We would appreciate inclusion in the comm itment of a statement that Andorra will
publish the current list of goods and services subject to State controls and any that are
introduced or re-introduced in the future in its Official Journal , as well as any changes in the
list provided of current requirements in place.
Reply:
Andorra undertakes to publish a list of the goods and services currently subject to State
control and those that may be introduced or reintroduced later in the Official Journal of the
Principality of Andorra (OJPA), together with any modification of the list submitted with respect to
the conditions currently in force.
(See the explanation of controlled prices in WT/ACC/AND/5, p.2)WT/ACC/AND/8
Page 2
(d) Foreign and domestic investment policies
Question 4.
Are foreign companies allowed to own compan ies in Andorra?  Under what conditions?
Reply:
The Government of Andorra is studying the possibilities of opening up the various economic
sectors.  This process will be reflected in the service market access schedule.
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE
1. Powers of the executive, legislative and judicial branches of government
Question 5.
Please describe in the WP report how Andorra will ratify the accession package
approved by the General Council Parliament at the conclusion of negotiations.
Reply:
Under Article 45.1 (h) of the Constitution of the Principality of Andorra and Article 14 of the
Basic Law Regulating the State’s Activity Relating to Treaties, dated 19 December 1996, the Consell
General  (Parliament) must approve by an absolute majority the conclusion of the WTO accession
negotiations.  The ratification procedure begins on the same day as the texts are approved byParliament.  The Sindic  (the President of Parliament) transmits the texts simultaneously to the two Co-
Princes, so that, within two weeks of this communi cation, they may express the consent of the State to
be bound by the texts adopted, order their publication in the OJPA and deliver and sign the
corresponding instrument.
Question 6.
Please indicate in the WP report whether, upon ratification, the provisions of the WTO
Agreement, as an international agreement, automatically supersede domestic law or if laws in
place conflicting with the WTO Agreement will have to be repealed or amended.
Reply:
The Constitution of the Principality of Andorr a (Article 3, paragraphs 2, 3 and 4) and the
Administrative Code (Articles 1, 6 and 7) recognize the principle of the hierarchy of norms, as a result
of which any national law or regulation that might conflict with an international agreement is
automatically void.
Consequently, any domestic norm that conflicts with the WTO Agreements will be brought
into conformity or abrogated.WT/ACC/AND/8
Page 3
3. Division of authority between central and sub-central forms of government
Question 7.
The response to question 12 of WT/ACC/AND/5 states that the Andorran legislature
adopts taxes and the comuns  have no competence in the field of foreign trade and only
administer transferred taxes.
We seek a clear description in the WP report of the extent of local authority with regard
to taxes, subsidies and other measures affecting traded goods and a commitment confirming
that sub-central administrative authorities, e.g., local administrative bodies, have no jurisdiction
or authority to establish regulations or taxes on goods and services in Andorra independent of
the central authorities and that application of these measures is exclusively the responsibility of
the executive and legislative branches of the central government.
We seek confirmation of the commitment that the central authorities will eliminate or
nullify measures taken by sub-central authorities in Andorra that are inconsistent with WTO
provisions from the date of accession.
Question 8.
Please specify whether, in administering taxe s, the sub-central authorities will be obliged
to comply with WTO rules, in particular the principle of non-discrimination.
Replies 7 and 8:
All regulations adopted by the local authorities ( comúns ) form part of the legislation of the
Principality of Andorra and therefore will have to  be consistent with the WTO Agreement.
4. Any legislative programmes or plans to change the regulatory regime
Question 9.
Please report on the status of legislative implementation of  WTO provisions in
Andorra, with particular emphasis on the establishment of WTO-consistent regimes in the
following areas:
(a) application of standards and certification requirements for imports
(b) application of sanitary and phytosanitary measures to imports(c) protection of  intellectual property
(d) application of indirect domestic taxes to imports in a manner no less favourable
than to similar domestic products
(e) application of indirect domestic taxes to imports from all sources on an MFN
basis
(f) elimination of WTO-inconsistent import bans and prohibitions.WT/ACC/AND/8
Page 4
Reply:
(a) Plan of action for the alignment of Andorra on the TBT Agreement:
Towards the end of the 70s, in view of the lack of decrees, orders or other provisions capable
of regularizing industrial activities, the Andorran Government, with the aim of protecting primarily
human but also animal life and health, preserving plant life and protecting the environment, adoptedthe first technical regulations on industrial safety and quality.  These provisions, modelled on the
European standards and, more particularly, those of our nearest neighbours, France and Spain, are
currently in force.  Subsequently, further such provisions were adopted in accordance with existing
international standards and the recommendations of European Community directives, for example, the
regulations concerning electrical, LPG and fire safety installations, pressure apparatus, lifts, cable
transport, the highway code, road transport, etc.
Recently, to meet the need for a general legal framework in the field of industrial safety and
quality, a draft law on safety and industrial quality was drawn up at ministerial level and is now
before Parliament.  The law on safety and industrial quality will provide the legal framework
necessary to deploy new technical regulations and standards, again in accordance with the principles
of progressive harmonization with the EN standard s, and to adapt the existing ones, under the same
conditions.
The act will also enable the government to dele gate powers of inspection to the private sector
under the various provisions concerning product standardization, approval and certification.  Since
products are so varied and complex, in all the industrialized countries these functions are performed
by bodies that collaborate with the government and by private laboratories duly approved by the
latter.
Moreover, within the context of the globalization of the economy, this bill specially addresses
the concept of quality, of services and processes as well as of products, in order to establish the
necessary legal basis for the introduction of quality standards, such as ISO 9000 and others, which
have proved to be indispensable for business purposes.
Finally, the law on safety and industrial quality will also permit the incorporation of the
legislative, regulatory and administrative provisions that are binding on our neighbours and the
member States of the European Union with which Andorra maintains agreements.  These provisions,
though already in force, will thus gain the benefit of the necessary legal cover which the legal
framework should confer.  Moreover, there is practically no industrial production in Andorra.  Almost
all goods are imported from various WTO Member countries which, in compliance with the technical
regulations and existing international standards, all receive the same treatment.
As regards the certification system, at present imports of products originating in member
States of the European Union must meet the regulatory requirements specific to each country.  For
imports from outside the Community, the products must satisfy the conditions and regulatory
requirements established by the EEC.  Only product certificates issued by laboratories approved by
the competent EU accreditation committees are accepted.  There are various private inspection and
quality control enterprises in Andorra, most of them  subsidiaries of French or Spanish inspection and
origin control agencies such as APAVE and ECA, which are approved by the government and
perform the control functions delegated to them under the legislation applicable in each case.
(b) Application of sanitary and phytosanitary measures to imports:
As far as possible, Andorra bases its domestic legislation on international standards and
directives and, in particular, on the WTO principles laid down in the SPS Agreement.  In thisconnection, Andorra is in the process of reducing border controls on imports and replacing them byWT/ACC/AND/8
Page 5
the measures stipulated in the Agreement, while providing the necessary guarantees for human,
animal and plant health.
As the legislation of the European Union is largely consistent with the SPS Agreement, the
current progressive alignment of the Andorran legisl ation on that of the EU guarantees that Andorra
will comply with that Agreement.
The Government publishes all the sanitary and phytosanitary regulations that it adopts in the
OJPA.
(c) Plan of action for the alignment of Andorra on the TRIPS Agreement:
Measures already taken:
The Principality of Andorra has already taken the following intellectual property measures:
- Law on trademarks, entered into force in 1996
- Law on patents, entered into force in 1998
- Law on copyright, entered into force in 1998
- Modernization of information systems and establishment of the Trademark Office of
the Principality of Andorra
- Exchange of information and consultations with WIPO
Work in progress:
Preparation of missing bills which, as agreed during the Working Party, will be completed by
December 2002 at the latest:
- Industrial designs
- Geographical indications
- Law on plant varieties
- Lay-out designs of integrated circuits
- Law on unfair competition concerning, in particular, the protection of undisclosed
information
Creation of the future Intellectual Propert y Office of the Principality of Andorra
A technical committee on intellectual property has been set up to examine the intellectual
property legislation and carry out the necessary preparatory work and to draw up plans for the
implementation of the TRIPS Agreement.  This co mmittee has already noted the provisions of the
legislation that are consistent with the provisions of the TRIPS Agreement and we can affirm that all
the intellectual property legislation in force is WTO-compatible.WT/ACC/AND/8
Page 6
(d) Application of indirect internal taxes to imports in a manner no less favourable than that in
which they are applied to like domestic products
Andorra is in the process of developing its tax system to extend the indirect tax to all the
productive sectors of the economy.  The tax concerned is the General Indirect Tax consisting of the
IMI, which includes the indirect tax on production, and the ISI (Indirect Tax on Services).  The laws
that will make it possible to collect ISI are before Parliament and will be voted on in March.
(e) Application of indirect internal taxes to imports from all sources on a MFN basis
We confirm that the IMI is applicable to all imports whatever their provenance or origin.
(f) Elimination of import prohibitions that are not WTO-consistent
In principle, there are no import prohibitions.  With regard to the few exceptions, such as
cranes and second-hand cars, the Government of Andorra undertakes to amend, before accession,
those parts of the domestic legislation that are not WTO-consistent.
6. Description of tribunals
Question 10.
The description of Andorra’s court system in WT/ACC/AND/3 does not make clear how
importers and exporters that wish to challenge ad ministrative rulings on issues covered by the
GATT 1994 and other WTO Agreements would be addressed.
Please describe for the WP report the administrative and judicial appeals that could be
undertaken by traders, e.g. in the areas of cust oms valuation, licensing, customs classification,
application of standards and sanitary regulations, in conformity with the provisions of the
WTO, e.g.,  Article X of the GATT, and the WTO Agreements on Customs Valuation, TRIPS
and Import Licensing Procedures.
Reply:
The legislation in force in the Principality of Andorra, in particular the provisions of the
Administrative Code, the Law on administrative and fiscal jurisdiction, and the Andorran Customs
Code, establishes that any importer or exporter may challenge an administrative ruling, in particular in
the areas mentioned in the question, before the administrative division of the  Batllia  of Andorra, after
first having exhausted the administrative dispute settlement procedure:
Procedure for challenging administrative rulings:
1. The operator submits a request to the Ministry responsible for the adoption of the ruling
challenged, in which he sets out his complaints.
2. The competent Ministry must give its reply within two months in the form of a decision.
Failure to reply is deemed to constitute rejection of the request.
3. If the Ministry in question rejects the request, the operator has 13 working days in which to
appeal to the Government.
4. The Government must give its reply within two months in the form of a  DECREE.  Failure to
reply is deemed to constitute rejection of the request.WT/ACC/AND/8
Page 7
5. Within 13 days of notification of rejection, the operator may bring a suit before the
administrative division of the Batllia ;  the judgement may be appealed to the High Court of Justice.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import regulation
(a) Registration requirements for engaging in importing
Question 11.
The sentence “Goods imported into the Principality of Andorra are not subject to any
form of regulation” is not in the right place and is incorrect.  The true reply can be found in the
chapter on import licensing procedures (page 14, WT/ACC/AND/5).
Reply:
This sentence should have been qualified to read:
“Under the implementing provisions of the Decree of 10 October 1981, goods imported into
Andorra are not subject to any form of regulation.”
In fact, under the provisions of this Decree, once the registration conditions have been
fulfilled, with respect to these specific regulations there is no restriction on goods imported.
Question 12.
What are the criteria for obtaining th e approval of the local authorities ( comúns )?
Reply:
See III-3 "Division of authority between central and sub-central forms of government"
(question 7).
Question 13.
Andorra states that, under the provisions of the Decree of 10 October 1981, natural or
legal persons wishing to conduct commercial or industrial activity on the territory of Andorra
must request authorization from the Government  and be listed on the Register of Commerce.
Andorra states that importing, exporting, represe ntation, agencies and distribution are forms of
commercial activity that must be registered and that actual import operations carried out must
correspond to activities declared in the Register of Commerce or be complementary to them.  InWT/ACC/AND/3, Andorra states that "Customs pro cedures on entry may consequently also be
directed towards enforcement of this obligation.  The nature of the goods imported by a natural
or legal person must therefore correspond to th e activities authorized with reference to the
commercial register".
Please provide a copy of the Decree of  10 October 1981 for WP review.
Reply:
See document WT/ACC/AND/8/Add.1.WT/ACC/AND/8
Page 8
Question 14.
Please outline the steps required to register  with the national Register of Commerce or
to amend a previous registration.
Are the criteria for registration to import ac tivity different from or more onerous than
those for other forms of commercial activity?  Wh at criteria does Andorra apply, in general, to
evaluate requests for registration that include the right to import and export?
Given the reference to how imported goods must "correspond to the activities
authorized with reference to the commercial regist er", would a firm not previously registered to
import be denied the right to do so if it wanted to?  If so, how long does it take to amend
Commercial Registration terms?  Is a firm limited by its Commercial Registration in the types
of goods that it may import?  Are there any other limitations on the types of goods that a firm
may import?
Is approval of an amended Commercial Registration, to allow for the right to import or
export, discretionary or automatic?  How would this requirement be imposed upon a domestic
firm that wanted to expand its scope of business?
Are such requirements extended to domestic producers or distributors, or are they
unique to importers and exporters and distributors of imported goods in Andorra?
Have any requests for the right to import b een rejected?  If so, please describe the
circumstances.
Reply:
With regard to the right to import, no application has been refused.
Question 15.
Are there any requirements or restrictions applied to any individuals or enterprises
engaging in importation that are not also app lied to individuals or enterprises engaging in
domestic manufacturing or services?
Concerning the limitations outlined  in the response to question  15 on the right of foreign
individuals to be registered, e.g. the need to  have resided at least 20 years in Andorra:
Do these include the right to import goods?
Does this apply to foreign-owned enterprises as well?  Can firms import for their own
use and for distribution without regard to nationality?
Reply:
(a) Right to engage in trade in Andorra
All commercial activities without  distinction are subject to the Decree of 10 October 1981
and to the Law on Trading Companies of 19 May 1983.
The following may be registered in the RCI (Register of Commerce and Industry):
- Andorran adult natural persons;WT/ACC/AND/8
Page 9
- legal persons governed by Andorran law;
- foreign natural persons, whatever their na tionality, who have resided in Andorra for
at least 20 years.
(b) Registration in the RCI
The person concerned, whether natural or legal, must apply for administrative authorization to
the local authority ( común ) within whose jurisdiction the commercial establishment will be situated.
Before giving its approval, the local authority must verify that the activity applied for is
compatible with the existing general legislation;  thus there will be no prohibition on engaging in the
requested activity if it poses no threat to public order, safety, morality or health.
Once this authorization has been obtained, the person concerned must lodge an application
with the government (Ministry of the Economy).  Depending on the activity applied for, the premises
may have to undergo technical or health inspections, in particular so as to ensure safety and hygiene,in accordance with the regulations published in the OJPA.
Once the premises have met the technical requirements and the administration has carried out
the usual administrative checks (for example, by verifying that the person concerned is in fact entitled
to engage in trade in Andorra and that the business name is not already being used by another
establishment), the person concerned will be authorized to open and operate his establishment.
He will then be automatically registered in the RCI for the activity or activities authorized.
The government will issue a certificate of registration in the RCI ( Tarja de Registre de Comerç i
Indústria ) showing the registration number, the date of registration, the name of the holder, his
business name, his address and the activity or activities authorized.  It generally takes not more than
two months to obtain a registration certificate.
The same procedure must be followed in order to make an amending entry in the RCI.
We note that, in December 1999, a new classification of economic activities that follows
Community recommendations was introduced.
(c) Treatment of import and export activities
The procedure to be followed and the criteria for registering an import or export activity are
the same as for any other activity.  Obviously, the technical and health criteria vary with the nature of
the goods imported: for example, a foodstuff importing and retailing business must satisfy hygiene
criteria that will not be demanded of another business engaged in, say, importing and selling
electronic goods.
As for the costs of registration and amending entries in the RCI, it should be pointed out that,
every year, the Government publishes the prices of administrative services in the OJPA.
In 1999, registration in the RCI, whatever the activity or activities, cost 25,000 PTA (or
150.25 EURO) and an amending entry, which may comprise one or several amendments in a single
administrative process, cost 10,000 PTA (or 60.10 EURO).WT/ACC/AND/8
Page 10
(d) Administrative checks carried out by the customs services
When goods are declared for import or export, the customs verifies that the consignee or
consignor is registered in the RCI (that is to say, is authorized to engage in the commercial activity)
and that the goods imported or exported correspond to the activities declared.
There is no general limitation on the kind of goods that a business may import or export.
Some products are subject to specific regulations in accordance with the existing legislation published
in the OJPA (administrative import permits for certain medicinal products, explosives or other
sensitive substances).
(e) Right to import and right to export
The right to import and the right to export are acquired as soon as the natural or legal person
is registered in the RCI.
Question 16.
We seek confirmation from Andorra of the following:
- That no restrictions exist on the right of foreign and domestic individuals and
enterprises to import and export goods and services in Andorra’s customs
territory, except as provided for in WTO Agreements;  and
- that individuals and firms are not restricted in their ability to import or export
based on their registered scope of busines s and the criteria for registration are
generally applicable and published in the Official Journal.
Reply:
Any foreign natural or legal person may import or export goods and services on Andorran
customs territory as soon as he is registered in the RCI.  The registration criteria mentioned in reply tothe previous question apply to all natural and legal persons without distinction and are published in
the OJPA.
Question 17.
If Andorra cannot confirm this, we need a clear description in the WP report of the
limitations applied to the right to trade or any registration requirements that restrict it, withparticular emphasis on how these differ from requirements applied to trade in domestic goods.
Reply:
Not applicable.
Question 18.
We seek a commitment that from the date of  accession Andorra will ensure that its laws
and regulations relating to the right to import and export goods and all fees, charges or taxes
levied on such rights would be in full co nformity with its WTO obligations, including
Articles VIII:1(a), XI:1, and III:2 and 4 of the GATT 1994 and that it would also implement
such laws and regulations in a full conformity with these obligations.WT/ACC/AND/8
Page 11
Reply:
From the date of accession, Andorra will ensure that the internal provisions are consistent
with its WTO obligations, in particular with Articles VIII, XI and III of the GATT 1994.
Question 19.
To the extent that Andorra cannot make such a commitment due to current measures in
place, we seek the elimination or amendment of those measures to meet the requirements
outlined above.
Reply:
Not applicable.
(b) Characteristics of national tariff
Question 20.
(Q.16-19 WT/ACC/AND/5)  We have some concerns regarding Andorra’s replies
relating to the EC-Andorra Customs Union.  While  we agree that this customs union is being
examined in the regional committee, it is also a valid issue for the Accession Working Party.  At
a minimum we will expect a commitment from Andorra that its regional trade agreements will
be fully consistent with GATT Article XXIV and GATS Article V.
We note it totally excludes agriculture, and therefore in our view does not eliminate
barriers on substantially all trade.
Reply:
If this argument is not accepted, there can be no justification for the preference provided for
EC tobacco, which is inconsistent with Article I of the GATT, and not justified by Article XXIV.
See reply to Question 41.We would merely point out that the trade regime has been extensively liberalized and that the
inclusion of the agricultural sector in the customs union would injure third countries exporting to
Andorra.
Question 21.
Please clarify the response to questions 16 and 17 (WT/ACC/AND/5):
Please confirm in the WP report that Ando rra applies MFN tariff rates to imports from
the EU in Chapters 1-24 of the Andorran tariff schedule with the exception of certain products,
which shall be listed by HS number.
Reply:
The only exception to the MFN rule concerns manufactured products of HS headings 24.02
and 24.03, or more precisely subheadings 24.02.10, 24.02.20, 24.02.90, 24.03.10, 24.03.91 and
24.03.99.WT/ACC/AND/8
Page 12
This reduction is applicable to all tobaccos of HS headings 24.02 and 24.03 manufactured in
the EU from raw tobacco previously released into free circulation (Article 12.2 of the EEC-Andorra
Agreement).
Question 22.
Please confirm in the WP report whether the 60 per cent tariff reduction on tobacco
import duties is for France and Spain only or from all EU sources.
Reply:
The tariff reduction is 40 per cent and is applicable to tobacco products from all the countries
of the EU under the conditions described in the reply to the previous question.
Question 23.
Please indicate if Andorra justifies tariff p references on tobacco products as part of its
customs union arrangement.
Reply:
This preference is attributable to the existence of acquired rights in favour Seita (France) and
Tabacalera (Spain) at the time the EEC-Andorra Agreement was signed.  The preference has been
extended to all EEC countries.
Question 24.
Please discuss in the WP report any ame ndments planned to the current preferential
system with the EU that would alter the curr ent, largely MFN, trade regime in agriculture.
Reply:
At the moment, there is no intention of making any changes in the existing system of
preferences.
Question 25.
Please confirm in the WP report whether A ndorra grants any other tariff preferences to
imports.  Andorra states:
“Consequently, the tariff preferences gran ted by the European Community in the
context of preferential relations in respect of or igin have also been ad opted by the Principality
of Andorra.  These apply to imports from the following:
- Countries associated with the EC in th e European Economic Area, Switzerland;
- Eastern and Central European countries (Hungary, Poland, Czech Republic,
Slovakia, Bulgaria and Romania);
- developing countries in Africa, the Caribbean and the Pacific (signatories to the
Lomé cooperation conventions) and associated overseas countries and
territories;
- Maghreb countries (Algeria, Morocco, Tunisia);WT/ACC/AND/8
Page 13
- Mashreq countries (Egypt, Jordan, Lebanon, Syria);
- Baltic States (Estonia, Latvia and Lithuania);
- Faeroe Islands, Cyprus, Malta, Turkey, Israel, Territories on the West Bank of
the Jordan and the Gaza strip, Republi cs of the former Yugoslav Federation:
Bosnia and Herzegovina, Croatia, the Former Yugoslav Republic of  Macedonia,and Slovenia;
- developing countries to which generalized tariff preferences are applied.”
Does this mean that Andorra grants tariff pr eferences to the trade of countries that have
preferential agreements with the EU, for example, those listed above?
Reply:
Yes, the Customs Union Agreement provides that for the products covered by the Customs
Union (25-97) Andorra shall apply all th e measures of common commercial policy  mutatis mutandis .
In particular, for the products of HS Chapters 25 to 97 Andorra applies the tariff preferences granted
at importation by the EC.
(d) Other duties and charges
Question 26.
Andorra has stated that it does not apply an y charges to imports other than tariffs and
domestic taxes, e.g., the IMI.
We would appreciate a statement to that effect in the WP report and a commitment
from Andorra that it will not list any other charges in its Goods Market Accession Schedule
under Article II:1(b) of the GATT 1994, thus binding such charges at zero.
Reply:
Andorra confirms that it does not apply any import charge other than customs duties and
domestic taxes.
Andorra undertakes not to introduce any other charge in its market access schedule.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 27.
(Q.23 and Q.26, WT/ACC/AND/5) We note that Andorra recognizes that its ban on the
import of second-hand vehicles is not consistent with Article XI of the GATT.  We await the
proposal that Andorra undertook to provide which will presumably rectify this.
Reply:
Andorra undertakes to apply a less restrictive regime to imports of second-hand vehicles.  It
envisages a more liberal regime permitting the importation and registration of vehicles up to
five years old.WT/ACC/AND/8
Page 14
Question 28.
For each of the five products identified in response to question 24, where imports are
restricted or prohibited, please list by HS numb er, the type of restriction, the reason for the
restriction, what information importers would have to supply to import the good, and the steps
an importer must take to be allowed to import.
Reply:
Narcotic substances:
The Pharmacy Service has an import monopoly.
Under Article 8 of the Regulation on medicinal products of 4 October 1977, the cultivation,
extraction, production, processing, preparation, possession, offering, distribution, buying brokerage,
purchase, import for sale, exportation or transfer of plants, parts of plants and substances listed in
Table B is prohibited in the Principality of Andorra for any non-medical or non-pharmaceutical use.
The importation of these substances is controlled for health and public order reasons.
For this reason only the Pharmacy Service of the Ministry of Health may import these
substances on behalf of pharmacies and hospitals.  The Pharmacy Service receives import applications
from pharmacies and hospitals and delivers the imported substances to them.  These establishments
must maintain a register of all their purchases and sales under government supervision.  Thepharmacies and hospitals issue these substances only against medical prescriptions.
Article 1 of the same Regulation specifies that Table B shall consist of the substances listed in
the international schedule of the Vienna Convention on Psychotropic Substances, namely:
Name HS subheading
Acetorphine 2939.10
Acetylmethadol 2922.19
Acetyl-alpha-methylfentanyl 2933.39
Alfentanyl 2933.39
Allylprodine 2933.39
Alpha-acetylmethadol 2922.19
Alpha-meprodine 2933.39
Alpha-methadol 2922.19
Alpha-prodine 2933.39
Anileridine 2933.39
Benzethidine 2933.39
Benzylmorphine 2939.10
Beta-acetylmethadol 2922.19
Beta-meprodine 2933.39
Beta-methadol 2922.19
Beta-prodine 2933.39
Bezitramide 2933.39
Cannabis 1211.90
Cannabis resin 1301.90
Clonitazene 2933.90WT/ACC/AND/8
Page 15
Name HS subheading
Coca (leaf)
All preparations based on coca leaf with a coca content of more
than 0.1% will be treated as coca leaf preparations1211.90
Coca (paste) 1302.19
Cocaine 2939.90
Codoxime 2939.10
Concentrate of  poppy straw 1302.11
Desomorphine 2939.10
Dextromoramide 2934.90
Dextropropoxyphene 2922.19
Diampromide 2924.29
Diethylthiambutene 2934.90
Difenoxin 2933.39
Dihydrocodeine 2939.10
Dimenoxadol 2922.19
Dimepheptanol 2922.19
Dimethylthiambutene 2934.90
Dioxaphetyl butyrate 2934.90
Diphenoxylate 2933.39
Dipipanone 2933.39
Drotebanol 2933.40
Ecgonine benzoylethyl ester 2939.90
Ecgonine benzoylpropyl ester 2939.90
Ecgonine cinnamoylmethyl ester 2939.90
Ecgonine 2,6-dimethyl-benzoyl methyl ester 2939.90
Ecgonine methyl ester 2939.90
Ecgonine methyl ester hydrochloride 2939.90
Ecgonine phenylacetyl-methyl ester 2939.90
Ethylmethylthiambutene 2934.90
Ethylmorphine 2939.10
Etonitazene 2933.90
Etorphine 2939.10
Etoxeridine 2933.39
Fentanyl 2933.39
p-Fluorofentanyl 2933.39
Furethidine 2934.90
Heroin 2939.10
Hydrocodone 2939.10
Hydromorphinol 2939.10
Hydromorphone 2939.10
Beta-hydroxyfentanyl 2933.39
Beta-hydroxy-3-methylfentanyl 2933.39
Hydroxypethidine 2933.39
Isomethadone 2922.30
Ketobemidone 2933.39
Levomethorphan 2933.40
Levomoramide 2934.90WT/ACC/AND/8
Page 16
Name HS subheading
Levophenacylmorphan 2933.40
Levorphanol 2933.40
Metazocine 2933.39
Methadone 2922.30
Methyldesorphine 2939.10
Methyldihydromorphine 2939.10
Methyl-3-fentanyl 2933.39
Alpha-methylfentanyl 2933.39
Alpha-methylthiofentanyl 2934.90
Methyl-3-thiofentanyl 2934.90
Metopon 2939.10
Moramide, intermediate 2934.90
Morphine, and derivatives 2939.10
MPPP 2933.39
Myrophine 2939.10
Nicodine 2939.10
Nicodicodine 2939.10
Nicomorphine 2939.10
Noracymethadol 2922.19
Norcodeine 2939.10
Norlevorphanol 2933.40
Normethadone 2922.30
Normorphine 2939.10
Norpipanone 2933.39
Opium 1302.11
Oxycodone 2939.10
Oxymorphone 2939.10
PEPAP 2933.39
Pethidine 2933.39
Pethidine, intermediate A 2933.39
Pethidine, intermediate B 2933.39
Pethidine, intermediate C 2933.39
Phenadoxone 2934.90
Phenampromide 2933.39
Phenazocine 2933.39
Phenomorphan 2933.40
Phenoperidine 2933.39
Pholcodine 2939.10
Piminodine 2933.39
Piritramide 2933.39
Proheptazine 2933.90
Properidine 2933.39
Propiram 2933.39
Racemethorphan 2933.40
Racemoramide 2934.90
Racemorphan 2933.40
Sufentanil 2934.90
Thebacon 2939.10
Thebaine 2939.10WT/ACC/AND/8
Page 17
Name HS subheading
Thiofentanyl 2934.90
Tilidine 2922.49
Trimeperidine 2933.39
Amphetamine 2921.49
Brolamphetamine 2922.29
Cathinone 2939.90
DET 2939.90
Dexamphetamine 2921.49
DMA 2922.29
DMHP 2932.99
DMT 2939.90
DOET 2922.29
N-ethyl MDA 2932.99
Eticyclidine (PCE) 2921.49
Fenetylline 2939.50
N-hydroxy MDA 2932.99
Levamphetamine 2921.49
Levomethamphetamine 2939.90
Lysergide, LSD, LSD-25 2939.69
MDMA 2932.99
Mecloqualone 2933.59
Mescaline 2939.90
Methamphetamine 2939.90
Methamphetamine racemate 2939.90
Methaqualone 2933.59
Methylaminorex 2934.90
Methylphenidate 2933.39
MMDA 2932.99
Parahexyl 2932.99
Pentazocine 2933.39
Phencyclidine (PCP) 2933.39
Phenmetrazine 2934.90
PMA 2922.29
Psilocine, psilotsin 2939.90
Psilocybine 2939.90
Rolicyclidine (PHP, PCPY) 2933.90
Secobarbital 2933.51
STP, DOM 2922.29
Tenamphetamine 2932.99
Tenocyclidine 2934.90
Tetrahydrocannabinols, all the isomers 2932.99
d-9-Tetrahydrocannabinol and all its stereochemical variants 2932.99
TMA 2922.29
Zipeprol 2933.59
N.B.:  Unless explicitly excluded, the isomers are also included in this schedule.  The same applies to the
esters and ethers of the drugs listed in this schedule  whose existence can be determined.  The salts of the
substances listed in the schedule are also subject to these regulations whenever the existence of such salts is
possible.WT/ACC/AND/8
Page 18
Parts of HS 95.04
Only concerns machines for leisure activities that involve direct or indirect pecuniary reward.
Reason:  public order and safety:  at the moment, money games are prohibited in Andorra.
Nature of the restriction:  absolute import ban (Government Decree of 12 April 1990).
Parts of HS 36.04
Only concerns anti-hail rockets, “globus” and other similar devices containing explosives -
HS subheading 36.04.90.
Reason:  public order and safety (prevention of fire hazards and protection of the public).
Nature of the restriction:  absolute impor t ban (Governmental Decree of 14 August 1996).
Headings or parts of headings HS 36.03, 87.10, 90.13, 93.01 to 93.07 and 95.06 (firearms and the
like)
Reason:  public safety, public order and to combat the illegal trade in arms and explosives.Nature of the restriction:  either an absolute import ban or importation subject to
authorization.
The following are subject to an absolute import ban (Article 2 of the Decree of 3 July 1989):
- Military weapons;
The following are deemed to be military weapons:  arms, vehicles, equipment and  matériel
of all types and their basic components, together with their ammunition, designed or
intended for making war or exclusively for military use.  Arms capable of firing in bursts
will always be deemed to be military weapons.  Rifles and their ammunition will also be
deemed to be military weapons when the neighbouring countries consider theircharacteristics or their calibre to identify them as such.
- arms exclusively for police use;
The following are deemed to be arms exclusively for police use: arms, vehicles, equipment
and matériel of all types and their basic components, together with their ammunition,
designed or intended specifically for police tasks, the maintenance of law and order or the
protection of persons and property.
- sawn-off shotguns, manipulated firearms and firearms combined with armes
blanches ;
- firearms resulting from a substantial modification of the original or manufacturing
characteristics;
- firearms of categories 1a, 2a, 3a and 4a above without their mark and serial number
engraved on the barrel or the frame;
- fake arms, detonators and warning pistols that do not satisfy the conditions that must
be met for them to be treated as arms of category 6a;WT/ACC/AND/8
Page 19
- cross-bows and slings improved to make them especially dangerous;
- knuckle-dusters, metal stars and any other device which in view of its characteristics
is of a kind such as to pose a threat to persons or public safety;
- silencers adaptable to firearms;
- night vision equipment, laser beams or beams with similar characteristics;
- hard-core armour-piercing ammunition, explosive, incendiary and expanding
ammunition, “dum-dum” bullets, bullets containing shot, and projectiles for this type
of ammunition.
The following are subject to prior import authorization (Article 12 of the Decree of 3 July 1989):
- “Short” defensive firearms and their ammunition - category 1;
- (Pistols and revolvers are deemed to be “short” firearms.  Guns with a barrel less than
45 cm long or with a total length of less than 80 cm with the butt folded, if possible,or without the butt, if not fixed, are treated in the same way as “short” firearms.
Ammunition for “short” firearms, except for those of 22 - 5.5 mm - calibre with rim
percussion).
- “short” firearms intended for sporting use - category 2;
- (Arms of category 1 will be deemed to be for sporting use when their calibre and
characteristics comply with the competition rules of the International Shooting Sport
Federation, except for those of 22 - 5.5 mm - calibre with rim percussion.  The
ammunition for these arms will also be deemed to be subject to the system when its
calibre and characteristics comply with th e competition rules of the International
Shooting Sport Federation, except for that of 22 - 5.5 mm - calibre with rimpercussion).
Procedures for issuing prior import authorizations (Articles 12 to 16)
In principle, import authorizations will only be granted to gunsmiths declared as such and
established in the Principality of Andorra.
Import applications must be lodged with the police by the importer.There are different import applications for outright and temporary importation.
Applications for outright importation must specify the arms to be imported and in each case
indicate the mark, model, calibre and intended use, together with that of the ammunition.
Applications for temporary importation must specify the arms to be temporarily imported and
in each case indicate the mark, model, calibre  and identification number, together with the
ammunition necessary for training and competition (quantity and calibre).  They will also indicate the
place where the arms will be presented and/or used, together with the place where they will be storedwith their ammunition during, before and after presentation, training and competitions.  In the case of
arms presentations, a copy of the authorization for the manufacture and/or sale of the arm(s) in the
country of residence of the applicant must also be produced, together with an authentic document
certified by an executive of the importing company confirming the temporary use in the PrincipalityWT/ACC/AND/8
Page 20
of Andorra.  In connection with sporting events, it will be necessary to produce a document from the
Fédération andorrane de Tir  or the company or association organizing the competition confirming
that the applicant is registered as a participant, together with a copy of the gun licence issued by the
country of residence of the applicant.
Note: The corresponding basic components, such as barrels, frames, magazines, drums, bolts and
their parts, are treated like firearms and are subject to the same regulations.  Firing caps and pistons
are treated in the same way as ammunition for firearms and are subject to the same regulations.
Headings or parts of headings HS 36.01 and 36.02 (explosives)
Reason:  public safety and public order.Nature of the restriction: imports subject to prior authorization (Regulation on explosives
approved by Parliament 4 May 1976 and most recently amended by the Government Decree of
5 October 1995).
The following, in particular, are subject to prior import authorization:
- All nitroglycerine or nitroglycol-based explosives (classification in category 1a);
- plasticized perchlorate explosives (category 2a);
- black powder based on sodium or potassium nitrate (category 3a);
- chlorate or perchlorate explosives (category 4a);
- black powder compressed into cartridges of less than 250 g and of a density of less
than 1.5 (category 5a);
- nitrate explosives - ammonium nitrate (category 6a);
- nitrate-fuel explosives (category 7a);
- penthrite and RDX detonating fuses (category 8a);
- lead-bound TNT detonating fuses (category 9a);
- electric detonators (category 10a);
- fuse detonators (category 11a);
- safety fuses (category 12a);
- CCR, LSB or the like (category 13a).
Procedure for issuing prior import authorizations
Only enterprises holding an administrative use and storage permit may import the above-
mentioned products.
To obtain a permit the importer must:WT/ACC/AND/8
Page 21
- Submit to the Department of Industry of the Ministry of the Economy a certificate
drawn up by the services of the local authorities where the works requiring the use of
explosives are to be carried out, indicating the nature of the substances to be used;
- submit to the same administrative services the official register for recording the
inward and outward movements of explosives, in connection with the above-
mentioned storage permit, whose modalities are defined in Article 29 of the
Regulation, together with details of the explosives to be imported.
The practical procedures for the importation of explosives must also satisfy precise
packaging, transport and registration requirements.
Question 29.
Could Andorra provide us with an update on the prospects for establishing a less
restrictive regime for second-hand vehicles?
Reply:
Andorra undertakes to apply a less restrictive second-hand vehicle import regime at the time
of accession.  It envisages a more liberal regime permitting the importation and registration of
vehicles up to five years old.
Question 30.
If tower cranes are to be subjected to an autonomous (non-EU) import authorization, it
will have to be done in a manner consistent with the WTO Agreement on Import Licensing
Procedures.
Reply:
Andorra promises that, at the time of accession, it will remove the ban on the importation of
demountable cranes in service for more than thre e years once the “Law on Industrial Safety” has been
approved by Parliament.  A copy of the law will be forwarded to the WTO Secretariat.
(f) Export licensing procedures
Question 31.
Andorra states in WT/ACC/AND/3 and in the reply to question 28 of WT/ACC/AND/5
that it does not have a licensing system.
As Andorra has addressed how importers could import restricted goods, we believe that
a form of licensing is at work, and seek comp letion of the Import Licensing Questionnaire in
WT/ACC/1 for these products.
Reply:
See document WT/ACC/AND/9.WT/ACC/AND/8
Page 22
Question 32.
Does Andorra operate its restrictions on imports for health, safety and sanitary
purposes according to the requirements of the WTO Agreement on Import Licensing?  If so,
please outline these provisions in a respon se corresponding to the Annex on Licensing
Procedures contained in WT/ACC/1.
Reply:
Yes, but always in compliance with the MFN and national treatment clauses.
Question 33.
If not, why not?  (Note: the Agreement on Import Licensing Procedures covers
administrative procedures requiring the submissi on of an application or other documentation
other than normal customs documents as a prior condition of importation.  End note).
Reply:
Not applicable.
(h) Customs valuation
Question 34.
The laws and regulations requested in qu estion 33 of WT/ACC/AND/5 do not exactly
correspond to the titles of legislation provided by Andorra as listed in WT/ACC/AND/6.
We would appreciate clarification as to whether the laws and regulations listed in
question 33 have been provided for WP review.
Reply:
In August 1999, the Government of Andorra sent the WTO all the legislation mentioned in
question 33.  The Andorran Customs Code is being tr anslated into English and will be communicated
to the WP as soon as possible.
(k) Application of internal taxes on imports
Question 35.
We welcome the undertaking that the law on the IMI will soon be applied in conformity
with Article III of the GATT.  Please provide a list of the goods to which it is currently beingapplied in a discriminatory manner.
Reply:
All imported products are subject to IMI;  there is discrimination against them only in the rare
cases in which like or competitive Andorran products also exist.
Question 36.
WT/ACC/AND/3 and 5 state that, at present, Andorra does not apply the IMI tax to
domestic goods.  This is a violation of Article III of the GATT.WT/ACC/AND/8
Page 23
Reply:
Andorra is in the process of developing its tax sy stem in order to extend the indirect tax to all
the productive sectors of the economy.  The tax concerned is the General Indirect Tax consisting of
the IMI, which includes the indirect tax on production, and the ISI (Indirect Tax on Services).  The
laws that will make it possible to collect ISI are before Parliament and will be voted on in March.
Question 37.
Please confirm that it is applied on an MFN basis to all imports from all sources, e.g.,
including to preferential trade from the EU.
Reply:
The IMI applies to all imports whatever their provenance or origin.  See the table below.WT/ACC/AND/8
Page 24Customs duty Tax
HS Chapter Description of Product Duty rate Minimum Tax rate Minimum
01.01 Live horses, asses, mules and hinnies. 550 Pta/unit 1%
01.02 Live bovine animals. 550 Pta/unit 1%
01.03.10.00 Live swine, pure-bred breeding animals. 165 Pta/unit 1%
01.03.91.10 Live swine, weighing less than 50 kg.  Domestic species 55 Pta/unit 1%
01.03.91.90 Other 55 Pta/unit 1%
01.03.92.11 Sows having farrowed at least once, of a weight of not less than 160 kg. 165 Pta/unit 1%
01.03.92.19 Other 165 Pta/unit 1%
01.03.92.90 Other 165 Pta/unit 1%
01.04 Live sheep and goats. 110 Pta/unit 1%
01.05 Live poultry, that is to say, fowls of the species Gallus domesticus, ducks,
geese, turkeys and guinea fowls.2% 1%
01.06 Other live animals. 2% 1%
02 Meat and edible meat offal. 1% 1%
03 Fish and crustaceans, molluscs and other aquatic invertebrates. 1% 1%
04 Dairy produce;  birds' eggs;  natural honey;  edible products of animal origin,
not elsewhere specified or included.2% 1%
05 Products of animal origin, not elsewhere specified or included. 1% 1%
06 Live trees and other plants;  bulbs, roots and the like;  cut flowers and
ornamental foliage.1% 1%
07 Edible vegetables and certain roots and tubers. 1% 1%
08 Edible fruit and nuts;  peel of citrus fruits or melons. 1% 1%
09 Coffee, tea, maté and spices. 2% 1%
09.01.11.00 Coffee, not roasted:  not decaffeinated. 00
09.01.12.00 Coffee, not roasted:  decaffeinated. 00
10 Cereals. 1% 1%
11 Products of the milling industry;  malt;  starches;  inulin;  wheat gluten. 1% 1%
12 Oil seeds and oleaginous fruits;  miscellaneous grains, seeds and fruit;
industrial or medicinal plants;  straw and fodder.1% 1%
13 Lac;  gums, resins and other vegetable saps and extracts. 1% 1%
14 Vegetable plaiting materials;  vegetable products not elsewhere specified or
included.1% 1%WT/ACC/AND/8
Page 25Customs duty Tax
HS Chapter Description of Product Duty rate Minimum Tax rate Minimum
15 Animal or vegetable fats and oils and their cleavage products;  prepared edible
fats;  animal or vegetable waxes.2% 1%
16 Preparations of meat, of fish or of crustaceans, molluscs or other aquatic
invertebrates.2% 1%
17 Sugars and sugar confectionery. 2% 1%
18 Cocoa and cocoa preparations. 2% 1%
19 Preparations of cereals, flour, starch or milk;  pastrycooks' products. 2%
20 Preparations of vegetables, fruit, nuts or other parts of plants. 2% 1%
21 Miscellaneous edible preparations. 2% 1%
22 Beverages, spirits and vinegar.
22.01 Waters, including natural or artificial mineral waters and aerated waters, not
containing added sugar or other sweetening matter nor flavoured;  ice and snow.3% 1%
22.02 Waters, including mineral waters and aerated waters, containing added sugar or
other sweetening matter or flavoured, and other non-alcoholic beverages, notincluding fruit or vegetable juices of heading No. 2009.3% 1%
22.03 Beer made from malt. 5% 1%
22.04 Wine of fresh grapes, including fortified wines;  grape must other than that of
heading No. 2009.5%
22.05 Vermouth and other wine of fresh grapes flavoured with plants or aromatic
substances.15% 1%
22.06 Other fermented beverages (for example, cider, perry, mead);  mixtures of
fermented beverages and mixtures of fermented beverages and non-alcoholicbeverages, not elsewhere specified or included.5% 1%
22.07.10.00 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or
higher.38 Pta/litre 1%
22.07.20.00 Ethyl alcohol and other spirits, denatured, of any strength. 1 Pta/litre 1%
22.08 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80%
vol;  spirits, liqueurs and other spirituous beverages.19% 1%
22.09 Vinegar and substitutes for vinegar obtained from acetic acid. 3% 1%
23 Residues and waste from the food industries;  prepared animal fodder. 2% 1%
24.01.10.10.1 Tobacco, not stemmed/stripped, light. 497 Pta/kg 1%WT/ACC/AND/8
Page 26Customs duty Tax
HS Chapter Description of Product Duty rate Minimum Tax rate Minimum
24.01.10.10.2 Tobacco, not stemmed/stripped, dark. 96 Pta/kg 1%
24.01.20.10.1 Tobacco, partly or wholly stemmed/stripped, light. 1700 Pta/kg 1%
24.01.20.10.2 Tobacco, partly or wholly stemmed/stripped, dark. 124 Pta/kg 1%
24.01.20.10.3 Trunk. 220 Pta/kg 1%
24.01.30.00 Tobacco refuse. 385 Pta/kg 1%
24.02.10.00.1 Cigars, cheroots and cigari llos, containing tobacco,  Community. 18% 563 Pta/kg 1%
24.02.10.00.2 Cigars, cheroots and cigari llos, containing tobacco, non-Community. 30% 938 Pta/kg 1%
24.02.20.00.1 Cigarettes, containing tobacco, Community, light;  packets of 20 cigarettes. 114 Pta/packet of 20 1%
24.02.20.00.2 Cigarettes, containing tobacco, Community, dark;  packets of 20 cigarettes. 12 Pta/packet of 20 1%
24.02.20.00.3 Cigarettes, containing tobacco, non-Community, light;  packets of 20 cigarettes. 190 Pta/packet of 20 1%
24.02.20.00.4 Cigarettes, containing tobacco, non-Community, dark;  packets of 20 cigarettes. 20 Pta/packet of 20 1%
24.03.10.10.1 Smoking tobacco, in immediate packings of a net content not exceeding 500 g;
Community tobacco.36% 270 Pta/kg 1%
24.03.10.10.2 Smoking tobacco, in immediate packings of a net content not exceeding 500 g;
non-Community tobacco.60% 450 Pta/kg 1%
24.03.10.90.1 Smoking tob acco, other;  Community. 36% 270 Pta/kg 1%
24.03.10.90.2 Smoking tobacco , other;  non-Community. 60% 450 Pta/kg 1%
24.03.91.00.1 "Homogenized" tobacco;  Community. 3% 1%
24.03.91.00.2 "Homogenized" tobacco;  non-Community. 5% 1%
24.03.99.10.1 Chewing tobacco and snuff;  Community. 3% 1%
24.03.99.10.2 Chewing tobacco and snuff;  non-Community. 5% 1%
24.03.99.90.1 Other tobacco;  Community. 3% 1%
24.03.99.90.2 Other tobacco;  non-Community. 5% 1%
25 Salt;  sulphur;  earths and stone;  plastering materials, lime and cement. 4%
26 Ores, slag and ash 4%
27 Mineral fuels, mineral oils and products of their distillation;  bituminous
substances;  mineral waxes.4%
27.10.00.27 Unleaded spirit with an octane number of less than 95. 37 Pta/litre
27.10.00.29 Unleaded spirit with an octane number of 95 or more but less than 98. 37 Pta/litreWT/ACC/AND/8
Page 27Customs duty Tax
HS Chapter Description of Product Duty rate Minimum Tax rate Minimum
27.10.00.32 Unleaded spirit with an octane number of 98 or more. 37 Pta/litre
27.10.00.34 Super with an octane number of less than 98. 37 Pta/litre
27.10.00.36 Super with an octane number of 98 or more. 37 Pta/litre
27.10.00.37 Spirit type jet fuel. 20 Pta/litre
27.10.00.66.1 Gas oil for vehicles. 10 Pta/litre
27.10.00.66.2 Gas oil for heating. 4.20 Pta/litre
28 Inorganic chemicals;  organic or inorganic compounds of precious metals, of
rare-earth metals, of radioactive elements or of isotopes.4%
29 Organic chemicals. 4%
30 Pharmaceutical products. 4%
31 Fertilisers. 4%
32 Tanning or dyeing extracts;  tannins and their derivatives;  dyes, pigments and
other colouring matter;  paints and varnishes;  putty and other mastics;  inks.4%
33 Essential oils and resinoids;  perfumery, cosmetic or toilet preparations. 7%
34 Soap, organic surface-active agents, washing preparations, lubricating
preparations, artificial waxes, prepared waxes, polishing or scouringpreparations, candles and similar articles, modelling pastes, 'dental waxes' anddental preparations with a basis of plaster.Application of customs
duties and the EU externalcommercial policy.  These
measures are not
applicable to Community
goods and goods released
into free circulation
(Andorra/EU Customs
Union Agreement of
28 June 1990).
4%
35 Albuminoidal substances;  modified starches;  glues;  enzymes. 4%
36 Explosives;  pyrotechnic products;  matches;  pyrophoric alloys;  certain
combustible preparations.4%
37 Photographic or cinematographic goods. 4%
38 Miscellaneous chemical products. 4%
39 Plastics and articles thereof. 4%
40 Rubber and articles thereof. 4%
41 Raw hides and skins (other than furskins) and leather. 4%
42 Articles of leather;  saddlery and harness;  travel goods, handbags and similar
containers;  articles of animal gut (other than silkworm gut).4%
43 Furskins and artificial fur;  manufactures thereof. 4%
44 Wood and articles of wood;  wood charcoal. 4%WT/ACC/AND/8
Page 28Customs duty Tax
HS Chapter Description of Product Duty rate Minimum Tax rate Minimum
45 Cork and articles of cork. 4%
46 Manufactures of straw, of esparto or of other plaiting materials;  basketware and
wickerwork.4%
47 Pulp of wood or of other fibrous cellulosic material;  recovered (waste and
scrap) paper or paperboard.4%
48 Paper and paperboard;  articles of pa per pulp, of paper or of paperboard. 4%
49 Printed books, newspapers, pictures and other products of the printing industry;
manuscripts, typescripts and plans.4%
49.01 Printed books, brochures, leaflets and similar printed matter. 0%
49.02 Newspapers, journals and periodicals. 0%
50 Silk. 4%
51 Wool, fine or coarse animal hair;  horsehair yarn and woven fabric. 4%
52 Cotton. 4%
53 Other vegetable textile fibres;  paper yarn and woven fabrics of paper yarn. 4%
54 Man-made filaments. 4%
55 Man-made staple fibres. 4%
56 Wadding, felt and nonwovens;  special yarns;  twine, cordage, ropes and cables
and articles thereof.4%
57 Carpets and other textile floor coverings. 4%
58 Special woven fabrics;  tufted textile fabrics;  lace;  tapestries;  trimmings;
embroidery.4%
59 Impregnated, coated, covered or laminated textile fabrics;  textile articles of a
kind suitable for industrial use.4%
60 Knitted or crocheted fabrics. 4%
61 Articles of apparel and clothing accessories, knitted or crocheted.Application of customs
duties and the EU external
commercial policy.  These
measures are not
applicable to Community
goods and goods released
into free circulation
(Andorra/EU Customs
Union Agreement of
28 June 1990).
4%
62 Articles of apparel and clothing accessories, not knitted or crocheted. 4%
63 Other made-up textile articles;  sets;  worn clothing and worn textile articles;
rags.4%
64 Footwear, gaiters and the like;  parts of such articles. 4%
65 Headgear and parts thereof. 4%WT/ACC/AND/8
Page 29Customs duty Tax
HS Chapter Description of Product Duty rate Minimum Tax rate Minimum
66 Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding crops and
parts thereof.4%
67 Prepared feathers and down and articles made of feathers or of down;  artificial
flowers;  articles of human hair.4%
68 Articles of stone, plaster, cement, asbestos, mica or similar materials. 4%
69 Ceramic products. 4%
70 Glass and glassware. 4%
71 Natural or cultured pearls, precious or semi-precious stones, precious metals,
metals clad with precious metal, and articles thereof;  imitation jewellery;coins.7%
71.06.10.00 Silver powder.
71.06.91.10 Silver, unwrought, of a fineness of not less than 999 parts per 1,000. 4%
71.06.91.90 Silver, unwrought, of a fineness of less than 999 parts per 1,000. 4%
71.08.11.00 Gold powder. 4%
71.13.19.00 Jewellery, goldsmiths' and silversmiths' wares and other articles, in precious
metals.0%
72 Iron and steel. 12%
73 Articles of iron or steel. 4%
74 Copper and articles thereof. 4%
75 Nickel and articles thereof. 4%
76 Aluminium and articles thereof. 4%
78 Lead and articles thereof. 4%
79 Zinc and articles thereof. 4%
80 Tin and articles thereof. 4%
81 Other base metals;  cermets;  articles thereof. 4%
82 Tools, implements, cutlery, spoons and forks, of base metal;  parts thereof of
base metal.4%
83 Miscellaneous articles of base metal. 4%
84 Nuclear reactors, boilers, machinery and mechanical appliances;  parts thereof. 4%WT/ACC/AND/8
Page 30Customs duty Tax
HS Chapter Description of Product Duty rate Minimum Tax rate Minimum
85 Electrical machinery and equipment and parts thereof;  sound recorders and
reproducers, television image and sound recorders and reproducers, and parts
and accessories of such articles.4%
86 Railway or tramway locomotives, rolling-stock and parts thereof;  railway or
tramway track fixtures and fittings and parts thereof;  mechanical (includingelectromechanical) traffic signalling equipment of all kinds.4%
87 Vehicles other than railway or tramway rolling-stock, and parts and accessories
thereof.4%
87.03 Motor cars and other motor vehicles principally designed for the transport of
persons.7%
87.11 Motor-cycles and cycles fitted with an auxiliary motor. 7%
87.13.10.00 Invalid carriages, not mechanically propelled. 0%
87.13.90.00 Other invalid carriages. 0%
87.14.20.00 Parts and accessories of invalid carriages. 0%
88 Aircraft, spacecraft and parts thereof. 4%
89 Ships, boats and floating structures. 7%
90 Optical, photographic, cinematographic, measuring, checking, precision,
medical or surgical instruments and a pparatus;  parts and accessories thereof.
90.01 Optical fibres and optical fibre bundles.
90.03 Frames and mountings for spectacles, goggles or the like. 7%
90.04 Spectacles, goggles and the like, corrective, protective or other. 7%
91 Clocks and watches and parts thereof. 7%
92 Musical instruments;  parts and accessories of such articles. 4%
93 Arms and ammunition;  parts and accessories thereof. 7%
94 Furniture;  bedding, mattresses, mattress supports, cushions and similar stuffed
furnishings;  lamps and lighting fittings, not elsewhere specified or included;illuminated signs, illuminated name-plates and the like;  prefabricated buildings.Application of customs
duties and the EU externalcommercial policy.  These
measures are not
applicable to Community
goods and goods released
into free circulation
(Andorra/EU Customs
Union Agreement of
28 June 1990).4%
94.99.99.99 Removals (personal effects). 0%
95 Toys, games and sports requisites;  parts and accessories thereof. 4%
95.04.30 Other games, coin- or disc-operated:  games with screen, flippers, parts and
accessories.12%WT/ACC/AND/8
Page 31Customs duty Tax
HS Chapter Description of Product Duty rate Minimum Tax rate Minimum
95.04.40.00 Playing cards. 7%
96 Miscellaneous manufactured articles. 4%
96.01 Worked ivory, bone, tortoise-shell, horn, antlers, coral… 7%
97 Works of art, collectors' pieces and antiques. 7%
97.01 Paintings, drawings and pastels, executed entirely by hand. 0%
97.02 Original engravings, prints and lithographs. 0%
97.03 Original sculptures and statuary. 0%WT/ACC/AND/8
Page 32
Question 38.
What is Andorra’s timetable for addressing th is problem, i.e., please confirm when the
IMI tax rates will be abolished or extended to sim ilar internal goods on a basis that brings the
application of this tax into conformity with Article III of the GATT.
Reply:
IMI, which is collected at importation, corresponds to a value added tax.  Andorra does not
intend to abolish this tax;  in fact, the Government proposes to extend it to all the productive sectors
of the Andorran economy.  This will take effect from the year 2000 with the approval in March 2000
of the law on the ISI (see previous question).  The tax on domestic production will be introduced in
2001 or at the latest before Andorra enters the WTO.
Question 39.
Please indicate at what point of sale the IMI will be applied when it is extended to both
imports and domestic products, for example, will the point of application be at the retail level or
at some other point?
Reply:
Initially, for domestic products IMI on production will be collected at the production stage, it
being understood that a system of deductibility up to the end consumption stage will subsequently beintroduced.
Where imports are concerned, IMI is collected at importation.
Question 40.
We seek a commitment from Andorra, in addition to information as to precisely when
these taxes will be made WTO-consistent, that from the date of accession Andorra will apply itsdomestic taxes, including the IMI, in strict  compliance with Article III of the GATT 1994, in a
non-discriminatory manner to imports, regardless of country of origin, and to domestically
produced goods.
Reply:
Andorra confirms that, at the time of accession, it will apply domestic taxes, including IMI, in
a manner strictly consistent with Articles I and III of the GATT 1994.
(i) Rules of origin
Question 41.
The EC-Andorra Customs Union currently excludes trade in agriculture products.
Japan is concerned that such exclusion might be contrary to the requirements of
Article XXIV:8(a) of the GATT 1994, which sti pulates that duties and other restrictive
regulations of commerce should be eliminated with  respect to substantially all trade between the
parties concerned.  We would thus like to draw the attention of Members to paragraph 4 of the
Preamble to the Understandin g on the Interpretation of Article XXIV of the GATT 1994,
whereby Member countries recognize that the cont ribution to the expansion of world trade is
diminished if any major sector of trade is excluded.WT/ACC/AND/8
Page 33
Please provide a detailed explanation as to why the above Customs Union excluded
trade in agriculture products.  Please also expl ain the alleged consistency of excluding trade in
agriculture with Article XXIV:8(a) of the GATT 1994. (Q.35, WT/ACC/AND/5).
Reply:
The fourth paragraph of the Preamble to the Understanding on the Interpretation of
Article XXIV of the GATT 1994 rightly states that  the contribution to the expansion of world trade
that can be made by eliminating tariff and non-tariff barriers between constituent territories will be
increased if it extends to all tr ade.  According to Article XXIV:8(a) of the GATT 1994, a customs
union is lawful if duties and other restrictive regulations of commerce are eliminated “with respect to
substantially all the trade between the constituent territories”.
The EC-Andorra Customs Union covers 80 per cent of EC-Andorra trade.  As far as
agricultural products are concerned, products originating in Andorra can enter the EC free of CCTduties.  If reciprocity had been provided for, i.e.   exemption of products originating in the EC from
Andorran import duties, the agreement would cover al l of EC-Andorra trade.  Note that for products
of HS Chapters 1 to 24, with the exception of tobacco and beverages, Andorran import duties are very
low.
It is not correct to say that the EC-Andorra Agreement excludes trade in agricultural products:
it actually establishes asymmetrical preferential access to the EC in favour of agricultural products of
Andorran origin.  The explanation for the differential treatment of agricultural and industrial products
is as follows:  most Andorran outlets consist of purchases by tourists (commercial tourism).  These
tourists are for the most part Community residents: it is hard to imagine their being able freely to
purchase third-country industrial products in Andorra free of CCT duties, whereas almost all the
agricultural products they buy are of Community origin.  It is therefore only normal that the
EC-Andorra Agreement should subject imports of third-country industrial products into Andorra to
the CCT, whereas the same requirement would not make sense where agricultural products are
concerned.
Thus, the customs union only covers industrial products.  As for agricultural products, the
1867 exchanges of letters between France and Spain, on the one hand, and Andorra, on the other,
established two genuine free-trade areas.  The pref erential access of products of Andorran origin to
France and Spain was therefore extended to all the countries of the Community, whereas the low level
of Andorran import duties on agricultural products (except for tobacco and beverages) made apreferential access clause in favour of agricultural products originating in the EC unnecessary.
It should be added that, although excluded from the customs union, the agricultural sector has
been extensively liberalized.  Agricultural products of Andorran origin exported to the EU are free of
duty and agricultural imports receive MFN treatment.  If Andorra had included the agricultural sector
in the Customs Union, the resulting regime would ha ve been much more restrictive than the present
one, since it would have to apply the Common External Tariff to imports of agricultural products, thus
penalizing the third countries that trade with Andorra.  Evoking Article XXIV to penalize agricultural
trade does not seem fair.
Question 42.
What rules of origin are used by Andorra to identify preferential trade from non-EU
countries to whom Andorra grants duty-free tari ff treatment, e.g., as described in the response
to question 35 (WT/ACC/AND/5)?WT/ACC/AND/8
Page 34
Reply:
As described in the reply to question 35, the rules of preferential origin used by Andorra are
the same as those applied by the member States of the EU.
Question 43.
Please cite the specific legislation that pr ovides for the implementation of Article 2(h)
and paragraph 3(d) of Annex II of the WTO Agreement on Rules of Origin.  If these provisions
are not explicitly included in Andorran law or reg ulation, we seek enactment of such provisions
prior to accession.
Reply:
Specific legislation providing for the application of Article 2(h) and paragraph 3(d) of
Annex II of the WTO Agreement on Rules of Orig in will be promulgated prior to accession.
(m) Anti-dumping regime (AD)(n) Countervailing duty regime
(o) Safeguards regime
Question 44.
Does Andorra have any intention to introduce domestic laws and regulations regarding
anti-dumping?  Is Andorra currently imposing an y anti-dumping measures?  If so, have the
authorities in Andorra initiated and/or conducted investigations to determine the existence of
any injury to the domestic industry?
In Japan’s view, the automatic imposition of  anti-dumping measures by any new party
of an existing customs union without prior investigation is inconsistent with Article XXIV:5 of
the GATT 1994, whereby duties and other regulations of commerce shall not on the whole behigher or more restrictive than those prior to the formation of such union.  As we are concerned
by such practice, we request Andorra to introduce as soon as possible its own domestic laws and
regulations on anti-dumping measures.  (Q.36, WT/ACC/AND/5).
Reply:
Being in a customs union with the EC for industrial products, Andorra applies the
Community’s anti-dumping regulations to those products.  These regulations are consistent with the
rules of the GATT 1994.  Andorra does not have any independent anti-dumping regulations and
therefore applies, solely for industrial products, the Community’s anti-dumping measures.  So far,
Andorra has never envisaged asking the Joint Committee to impose anti-dumping measures on thegrounds of injury caused to Andorran industry which, it should be recalled, is very embryonic.
Andorra does not contemplate providing itself with national anti-dumping regulations for agricultural
products.WT/ACC/AND/8
Page 35
Question 45.
Please clarify the meaning of the responses to questions 36-38 of WT/ACC/AND/5.
Is it to be understood that Andorra (a) does not have its own AD/CVD or safeguard
laws, and (b) does not conduct its own AD/CVD or safeguard investigations?
Reply:
As a party to the Customs Union, Andorra appl ies the anti-dumping and countervailing duties
and the safeguard clauses established by the EC.  It is true to say that, because of the EC-Andorra
Agreement, Andorra does not have its own laws.
Question 46.
Could Andorran firms petition the EC Commission to conduct the investigation and
apply the measures for industrial goods covered by the Customs Union, i.e. Chapters 25-97 of
the tariff schedule?
Reply:
In the context of the EC-Andorra Customs Union, the Community institutions have exclusive
responsibility for the adoption of anti-dumping m easures;  conceivably, Andorra could make such a
request to the Joint Committee set up under the EC-Andorra Agreement.
During nearly ten years of existence of the EC-Andorra Agreement, this clause has never
been applied.
Question 47.
Regarding the safeguard provisions in Article 10 of the Customs Union Agreement,
what is the relationship of these measures to the provisions of the WTO Agreement on
Safeguards?
Reply:
The presence of a safeguard clause in Article 10 of the Agreement was made necessary by the
possibility that implementation of the common commercial policy might seriously damage Andorra’s
economic interests.  Under the terms of this article, exceptionally, Andorra could be authorized by the
Joint Committee to adopt surveillance or protection measures with respect to both member States ofthe Community and third countries.
Question 48.
Does Andorra have WTO-consistent regulations and institutions to apply AD/CVD
measures on its own, for example, for agricultural imports not covered by the Customs Union?
Reply:
Andorra has no regulations and hence no institutions for applying anti-dumping measures or
countervailing duties for agricultural imports.  If in the future it were to adopt any regulations it woulddo so in accordance with WTO provisions.WT/ACC/AND/8
Page 36
Question 49.
We would appreciate receiving a detailed explanation from Andorra as to why its
safeguard measures are relevant only for trade in  industrial products in HS Chapters 25-97.
Reply:
The safeguard clause, which applies only to EC-Andorra trade, in Article 10 of the
EC-Andorra Agreement relates exclusively to industrial products because only these products are
covered by the Customs Union.  Consequently, only these products fall within the Custom Union’s
common commercial policy, which in certain circumstances might threaten to "deflect trade" or cause
"economic difficulties".  In such circumstances, the Joint Committee could authorize  derogations
from the common commercial policy, justified by these deflections or difficulties, in favour of the
contracting party affected.
2. Export regulation
(h) Import duty drawback schemes
Question 50.
Please confirm that the rebate of customs du ties is not related to the use of imported
inputs in the manufacture of exported goods.
Reply:
At present, there is no possibility of obtaining the rebate of customs duties in connection with
manufacturing or production operations.
3. Internal policies affecting foreign trade in goods
(a) Industrial policy, including subsidy policies
Question 51.
Please describe precisely how Articles 99-157 of the National Customs Code are
designed to facilitate the development of regulations essential to the effective promotion of the
industrial sector.
Reply:
The regulatory development of the provisions of Articles 99 to 157 of the Customs Code is
intended to facilitate the expansion of the industrial sector by allowing operators to engage in
production or processing activities with relief from the payment of customs duties if the products of
these activities are re-exported.  These articles of the Code are intended to encourage the development
of not just one but all industrial sectors.WT/ACC/AND/8
Page 37
(b) Technical regulations and standards, including measures taken at the border with respect to
imports
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
Question 52.
(Q.41, WT/ACC/AND/5) Andorra has not responded to the question concerning
conformity with the requirements of the TBT Agr eement.  We seek further advice on Andorra’s
intentions.  Andorra will need to give a commitment to conformity and provide details of the
step by step process, including a timetable for implementation.
Reply:
See reply to question 9, p.4
Mixing regulations
Question 53.
We previously submitted a question on mixing regulations which does not appear in
WT/ACC/AND/5.  Does Andorra have in place any measures which require enterprises to use
domestic products rather than imported products, or to use certain proportions of domestic
products as a condition of receiving some form of benefit?
Reply:
There is no measure of this type in Andorra.
Question 54.
We are concerned that Andorra’s documentation to date does not discuss how
Andorra’s current domestic procedures for stan dards and sanitary/phytosanitary requirements
applied to imports are compatible with WTO provisions, nor does it discuss how Andorraintends to meet its obligations.
Finally, Andorra is somewhat vague about its ability to provide the institutional
framework for transparency and due process required by the WTO’s TBT and SPS
Agreements, for example, there is no response at all concerning the TBT Agreement and that it
"will try its best" to implement the SPS Agreement.
We request that prior to the next WP, Andorra provide the information sought in
Annex 5 of WT/ACC/1 and the checklists on TBT and SPS provided by the WTO Secretariat.
We urge Andorra to reflect on how it intends to meet its responsibilities under these
agreements, and to report in detail, prior to the next WP, on how that will be accomplished
prior to accession.
Reply:
Andorra undertakes to adopt internal regulations consistent with the TBT and SPS
Agreements before accession.WT/ACC/AND/8
Page 38
Question 55.
In its Memorandum on the Foreign Trade Regime and in response to question 24 of
WT/ACC/AND/5, Andorra states that it applies quantitative measures to protect domestic
health and safety.  Andorra has not, however, described how these restrictions are administered
or how they are consistent with WTO provisions.
Does Andorra recognize international sanitary  and phytosanitary standards?  Is it a
member of the Codex Alimentarius Commission (CODEX) or the International Plant Protection
Convention (IPPC)?
Reply:
Andorra is a member of the WHO but not of th e FAO.  Andorra does not participate in the
Codex Alimentarius Commission but accepts its rules as international standards of reference, together
with the recommendations made by the WHO.
Andorra is not a member of the IPPC.  It is a member of the International Office of
Epizootics.
(d) Trade-related investment measures
Question 56.
Andorra should confirm in the WP report that  it does not maintain measures that are
not in conformity with the Agreement on Trade-Related Investment  Measures.
Reply:
Andorra does not maintain trade-related investme nt measures that are not in conformity with
the TRIMS Agreement.
Question 57.
Government procurement procedures, including the general legal regime and tendering
and contract award procedures.
We urge Andorra to become an observer in the Committee on Government
Procurement immediately, and commit in its accession protocol to initiate negotiations for
membership upon accession with th e submission of an entity list, with a reasonable time frame
for completion of the negotiations.
Reply:
Andorra is in favour of acceding to the Plurilateral Agreement on Government Procurement.
Andorra will take a decision once the detailed assessment of the implications of accession to that
Agreement has been completed.
Question 58.
For accession.  Has Andorra completed its assessment of the impact on the domestic
market?WT/ACC/AND/8
Page 39
Reply:
Andorra takes a positive view of accession to the Agreement on Government Procurement.
As the application threshold established in the Agreement is high, especially for a small country, only
large infrastructure projects (tunnels, roads, hospitals, etc.) would be affected.
4. Policies affecting foreign trade in agricultural products
Background
Question 59.
We would appreciate as soon as possible receiving a copy of the draft Law on
Agriculture.
Question 60.
(Q.50, WT/ACC/AND/5) We are interested in examining the Law on Agriculture.  Is a
copy available?
Replies 59 and 60:
See document WT/ACC/AND/8/Add.1.
(a) Imports
Question 61.
Question 46 regarding restriction of meat from animals treated with growth hormones:
we would note that Andorra did not completely answer this question with respect to specific
HS codes and WTO rationale for restricting impo rts of meat treated with hormones.  In its
response, Andorra implies that beef treated wi th hormones imported from the United States
would be banned since Andorra would prescribe to the same health standards as the EC.
The EU ban on imports of beef treated with hormones has been declared inconsistent
with WTO provisions.
We would encourage Andorra to ensure that any import restrictions or bans are
consistent with WTO rules.
How does Andorra plan to ensure that the ban is not implemented on imports of meat
into Andorra?
Reply:
Andorra undertakes to enter into conformity with WTO regulations at the time of accession.WT/ACC/AND/8
Page 40
Question 62.
Andorra’s draft schedules on domestic support and export subsidies
(WT/ACC/SPEC/AND/2) indicate that it maintains only green box domestic support measures,
that it will undertake not to exceed the de minimis  support level for amber box measures, and
that it maintained a small level of export subsidies for cattle in the base period but this will beeliminated in September 2000.  While these prospective commitments appear good, we have
serious reservations about whether a number of the domestic support measures classified by
Andorra as green box do, in fact, meet Annex 2 criteria.
We are particularly concerned about the inclusion of a subsidy for nursing stock under
environmental programmes.  This appears to be an attempt to include a payment for a
"multifunctional" purpose in the green box which does not meet the fundamental requirement
that green box measures should have no, or at most, minimal trade-distorting effects or effects
on production.  Nor does it meet the policy sp ecific criteria for environmental programmes set
out in Annex 2.
Reply:
The agricultural law abolishes certain measur es previously adopted and introduces new ones.
The domestic support measures contained in the law are as follows:
Support for training:
"Direct payments to producers":  Aid to improve the level of training of human operatives.
This constitutes a total or partial subsidization of the training programmes and courses.
Support for research and development
"Direct payments to producers":  Aid intended to support research and development projects
that represent an improvement for Andorran agriculture.
Support for the production of controlled-quality products
"Amber box":  Aid to compensate for the increased costs resulting from the quality
requirements to which agricultural products are subject.
Support for traditional mountain breeding practices
"Amber box":  Payment per head of cattle as a function of the country’s fodder consumption.
As Andorra has no land register that would enable payment to be made on an area basis, the method
of subsidization is based on the area of grass consumed.  However, there is a limit on the number of
head of cattle.
Support for meadow mowing
“Payments under environmental programmes”:  This type of support establishes a number of
hectares to be mown as a function of the recorded number and type of cattle on the farm.  The amountof aid will depend on the altitude and the difficulty of mowing the field.
Support for maintenance grazing of underbrush and fallow land
"Payments under environmental programmes":  Aid to encourage underbrush grazing.WT/ACC/AND/8
Page 41
Support for agreements to lease small areas of adjacent agricultural land
"Direct payments to producers"
Support for improvement programmes
"Structural adjustment assistance provided through investment aids":  Support granted with a
view to encourage investments intended to improve economic efficiency, product quality and sanitaryconditions on farms.
Support for specific agricultural practices suitable for maintaining the environment
"Payments under environmental programmes":  Support intended to encourage the return to
use of wild meadows and agricultural activities, with a view to maintaining the environment and the
countryside.
Description of the Andorran agricultural sector:
The Principality of Andorra is a European country in the Pyrenees, between France and
Spain, countries with which it shares a 121 km long border.  Of its total area of 464 km2, only 4 per
cent is suitable for cultivation.  Some 350 hectares are used for growing tobacco and the rest consists
of natural and man-made meadows.
Andorra has a stable bovine herd, an increasing number of sheep and a declining bull herd.
The stock farming system is extensive and based on grazing and fodder production.  The sectorgenerates employment equivalent to 0.6 per cent of the total wage-earning population.
1995/96 1996/97 1997/98 1998/99
Bulls 68 55 47
Cows 1,122 1,183 1,152
Working animals 31 27 29
Stallions 158 139 154
Mares 620 727 813
Pigs 63 81 63
Sheep 2,124 2,021 2,452
He-goats 26 26 31
She-goats 578 536 737
Total 4,790 4,795 5,478
Question 63.
Specific comments on Andorra’s draft schedules
1. Andorra will need to provide data on the value of domestic support and export subsidies
provided in each year of the base period - no t just an average figure for the three years.
2. Andorra has stated that it will undertake not to exceed the de minimis  domestic support
level.  We presume that this is the developed country de minimis  level of 5 per cent.WT/ACC/AND/8
Page 42
3. Andorra will need to provide further details of its agricultural support programmes if it
is to justify its claim that all measures are green box.  From the information available, a number
of the listed programmes do not appear to meet Annex 2 criteria.  For example:
- The provision of free veterinary services to farmers appears to go well beyond
the scope of government services normally provided for pest and disease control
purposes (paragraph 2(b) of Annex 2).  We are concerned that the payments are
being used to reduce the cost of inputs and are not minimally distorting to
production as required under Annex 2;
- the agricultural machinery subsidy li sted under direct payments to producers
appears to be an amber box input subsidy;
- the payment of insurance premiums on behalf of producers does not meet the
criteria of government financial participation in income insurance and income
safety-net programmes (paragraph 7).  Permitted programmes under this
category involve government payments to  compensate for actual income losses
not payment of insurance premiums;
- subsidies for nursing stock do not meet criteria for payments under
environmental programmes nor the fundamental requirement for Annex 2
measures that they involve no or mini mal distortions to production and trade.
Permitted payments under paragraph 12 are to compensate producers for the
extra costs of complying with a clearly-defined government environment or
conservation programme (e.g.  soil conservation).  They are not intended for the
purpose of maintaining a level of stock breeding because this form of
agricultural activity is perceived as  important for maintaining a pleasant
environment for the benefit of tourists (as implied by Andorra’s explanation of
this policy in its memorandum (WT/ACC/AND/3).  This measure involves a
support programme coupled to production and will need to be included in the
calculation of Andorra’s AMS.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
Question 64.
We welcome the undertaking to do it on accession (reply to question 57, p. 38).  Please
submit a detailed action plan.
Question 65.
(Q.53-57, WT/ACC/AND/5) Andorra’s replies to questions on TRIPS are not clear in
terms of the specific course of action Andorra will take to introduce WTO-consistent legislation.
Replies 64 and 65:
See replies 66-71.
Question 66.
We understand that the Government of Andorra is preparing draft legislation on
geographical indications, industrial designs and unfair competition.WT/ACC/AND/8
Page 43
Please indicate when each of these drafts is  expected to be presented to Parliament for
passage and the expected date for enactment.  We  would also be interested to know the status of
your efforts to promulgate and enact legislation on plant varieties, layout designs of integrated
circuits, trade secrets and test data.
Reply:
An action plan for TRIPS legislation will be submitted to the Working Party, together with a
synoptic table of the laws already in force provided by the United States Department of Commerce
(USTR).
Question 67.
Please provide a calendar of legislation implementation indicating the status and
timetable for enactment and implementation of the legislative instruments necessary to
implement the TRIPS Agreement.
Reply:
As we informed the members of the Working Party, a TRIPS calendar has been approved by
the Government and provides for the implementation of the TRIPS Agreement by summer 2001.
Andorra already has a trademark law and the corresponding regulations, a law on copyright and a
patent law.
It remains to implement:
- The copyright regulations;
- the patent regulations;
- the law on geographical indications and appellations of origin;
- the law on industrial designs;
- the law on the protection of plant varieties;
- the law on layout designs of integrated circuits;
- the law on the protection of data and industrial secrets.
Question 68.
Can Andorra confirm that it will have all neces sary legislation in place to implement the
WTO Agreement on TRIPS pr ior to its WTO accession?
Reply:
Andorra undertakes to have all the legislation required by the TRIPS Agreement in place at
the time of accession to the WTO.WT/ACC/AND/8
Page 44
The primary enforcement features of a TRIPS-consistent regime include civil, criminal and
administrative procedures and remedies against any act of infringement of intellectual property rights.
According to WT/ACC/AND/3, enforcement remedies against infringements other than trademark are
not addressed in Andorran law or regulation, and it is unclear whether provisional relief is provided.
Question 69.
Please describe in detail whether the above enforcement features are applicable to other
types of infringements covered by the TRIPS Agreement.
Reply:
The Trademark Law, the Law on Copyright and the Patent Law are consistent with the TRIPS
Agreement as regards civil, criminal and administrative procedures and remedies against any act of
infringement.  The new laws will be consistent  with the provisions of the TRIPS Agreement.
Question 70.
Description of judicial, arbitral or administrative tribunals or procedures
Reply:
See reply to question 10, p.6.
Question 71.
Please clarify whether the Government of Andorra provides injunctive relief to ensure
that infringing activity is stopped immediately, and whether ex parte  search orders are provided
so that relevant evidence is preserved for rightholders to pursue civil remedies.
Reply:
With respect to trademark rights, copyright and patents, the present legislation provides for an
injunction to ensure the immediate cessation of an infringing activity within the context of the TRIPSrequirements.
VI. TRADE-RELATED SERVICES REGIME
Question 72.
(Q.62, WT/ACC/AND/5).  Please provide further clarifications on those exceptional
cases where foreign equity capital can rise to 10 0 per cent.  Please also explain in detail what
kinds of services could be categorized under those declared of public or social interest.  What
are the criteria for providing concessions for a case where more than 33 per cent of foreign
participation is permitted?
Reply:
The Government of Andorra is studying the possibilities of opening up the various economic
sectors.  This process will be reflected in the service market access schedule.WT/ACC/AND/8
Page 45
Question 73.
(Q.63, WT/ACC/AND/5).  Is our understanding correct that commercial and non-
governmental companies managing State monopoly companies are allowed to provide
wire-based services?
Reply:
The telecommunications sector has not yet been liberalized.  Access to the infrastructure is
closed.  A telecommunications law is being prepared.
Question 74.
(Q.67, WT/ACC/AND/5).  What are the exact functions of a lawyer ( avocat )?  Are the
requirements to become a solicitor ( notaire ) or lawyer ( avocat ) exactly the same?  If not, please
also indicate the requirements necessary for becoming a solicitor ( notaire ).
Reply:
As in Andorra’s two neighbouring countries, France and Spain, the organization of the legal
profession in Andorra differs from the Anglo-Saxon system.  Thus, a distinction is made between
lawyers ( avocats ) and notaries ( notaires ).
Functions of a lawyer
The main functions of a lawyer are:
- To advise his clients on the legal procedures to be followed in the event of a dispute;
- represent his clients in their dealings with third parties;
- plead before the Andorran courts.
Requirements to become a lawyer
To become a lawyer it is necessary to satisfy the following conditions:
- obtain government authorization to practise  a liberal profession.  Authorization will
be granted to Andorran natural persons and to foreign natural persons with at least
20 years residence in Andorra who, in the case of lawyers, are holders of a law
degree;
- be enrolled in the Collège Officiel d’Avocats d’Andorra .
Functions of a notary ( notaire )
A notary is a law professional with civil service status empowered to confer authenticity on
legal instruments, keep them in his official archives and forward copies to interested parties.
The notary is a public official who, for legal purposes, guarantees the authenticity and
evidential value of public instruments.WT/ACC/AND/8
Page 46
The functions of a notary are:
- To authenticate documents and contracts which he authorizes in the form of a public
instrument;
- to advise on the appropriate legal means of achieving the ends in view;- to draw up legal instruments in accordance with the wishes of the parties and inform
them of their content and meaning;
- to collect the taxes legally payable on the documents and contracts he authorizes.
Requirements to become a notary
To become a notary it is necessary to satisfy the following conditions:
- Possess Andorran nationality;
- be at least 25 years of age;
- have no criminal record for wilful wrongs;
- have a law degree;
- have passed the examinations.
The profession of notary is incompatible with any other public office and any business or
professional (as a lawyer) activity.
Notaries are recruited on the basis of public competitive examinations from among those who
satisfy the specified conditions.
The Government appoints notaries who must take an oath before the head of government.
The list of notaries appointed is published in the OJPA.
Question 75.
(Q.74, WT/ACC/AND/5).  With regard to this question, we would like to request further
clarifications to the first paragraph, page 34, of document WT/ACC/AND/3.  Indeed, we would
like to know whether the word "branch", indicated in the second sentence, refers to a branch of
a foreign bank or an insurance company.  Please  could Andorra explain this sentence in further
detail.
Reply:
Foreign banks cannot have a presence in Andorra through a branch.  This possibility cannot
be envisaged as long as there is no reciprocity in favour of Andorran banks.
Banks in Andorra must take the form of a public limited company governed by Andorran law.
Therefore a foreign bank (foreign legal person) cannot have a presence in Andorra through a branch.
Only companies governed by Andorran law that have satisfied the approval criteria defined
by law are authorized to engage in banking activ ities.  The company governed by Andorran law may
be a subsidiary of a foreign banking institution, provided the 51 per cent limit on equity capitalparticipation is respected.WT/ACC/AND/8
Page 47
With regard to insurance the situation is different.  Foreign insurance companies can be
authorized to carry on insurance activities in Andorra through an agency ( délégué ).  The  délégué
must be a legal person governed by Andorran law or a natural person of Andorran nationality or a
natural person of foreign nationality with more than 20 years of residence in Andorra.
__________