RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/ALB/23/Rev.1
22 April 1998
(98-1615)
Working Party on the
 Accession of AlbaniaOriginal:  English
ACCESSION OF ALBANIA
Additional Questions and Replies
Revision
The following revised replies to the additional questions raised by members have been
received from the Ministry of Trade and Tourism of the Republic of Albania.  Laws and amendments
listed in the Annex are available for consultatio n (Accessions Division, Room 1126) by interested
members.
_______________
TABLE OF CONTENTS
Page
No.Question
No.
II. ECONOMY, ECONOMIC POLICES AND FOREIGN
TRADE
2. Economic Policies
(a) Main directions of ongoing economic policies 1 1
(b) Monetary and fiscal policies 3 2-5
(d) Foreign and domestic investment policies 4 6-8(e) Competition policies 5 9
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing 6 10-11(b) Characteristics of national tariff 7 12-14
(e) Quantitative import restrictions, including prohibitions, quotas
and licensing systems71 5
(f) Import licensing procedures 8 16-21
(h) Customs valuation 10 22-31
(j) Pre-shipment inspection 12 32
(k) Application of internal taxes on imports 13 33-37(m-o) Anti-dumping and countervailing duty measures 18 38
2. Export Regulation
(b) Customs tariff nomenclature, types of duties, etc. 18 39WT/ACC/ALB/23/Rev.1
Page ii
Page
No.Question
No.
(c) Quantitative export restrictions 18 40-42
(d) Export licensing procedures 19 43
(f) Export financing, subsidy and promotion policies 20 44
3. Internal Policies Affecting Foreign Trade in Goods
(b) Technical regulations and standards 20 45-54
(c) Sanitary and phytosanitary measures 23 55
(e) State-trading practices 23 56-64
(l) Government procurement practices 25 65-78
4. Policies Affecting Foreign Trade in Agricultural Products
(a) Imports 29 79
(b) Exports 30 80-82
(e) Internal policies 31 83-84
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy 33 85-86
2. Substantive Standards of Protection
(a) Copyright and related rights 33 87-91(b) Trademarks, including service marks 37 92-96
(d) Industrial designs 39 97
(e) Patents 40 98-103
(g) Layout designs of integrated circuits 42 104-105
(h) Requirements on undisclosed information, including trade
secrets and test data43 106-107
4. Enforcement 43 108-109
VI. TRADE-RELATED SERVICES REGIME
Professional services 44 110
Financial services
- Banking 45 111-119
- Investment 48 120
Telecommunications 49 121
Transport services 49 122
Tourism 49 123
ANNEX List of New Laws and Amendments to Existing Laws 51WT/ACC/ALB/23/Rev.1
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions of ongoing economic policies
Question 1.
Please provide an up-to-date account of progress in privatization.
Answer:
The following is a summary of the Privatization Law of March 1998.  A copy of the law in
English is not yet available.  A copy is forthcoming and is expected to be provided to the Secretariat
in late April 1998.
Parliament approved the strategy for privatization of strategic sectors as well as the relevant
laws needed to support the process of privatization.  Separate laws shall be approved for privatization
of each specific strategic sector.
The strategic sectors (i.e., telecommunications , energy, mining, transportation, and water
utility) are the only sectors left to be privatized.  Privatization in these sectors will follow at least one
of three methods:
- a partial or complete transfer of shares to the private sector;
- the transfer of use rights for natural resources;  and/or
- the use of management contracts.
The first phase of privatization will begin during the second quarter of 1998 in which the
remaining state-owned enterprises (SOE's) of economic importance shall be transformed into
joint-stockholding companies.  By the end of the first half of 1998 all necessary amendments and new
legal acts shall be completed to support this process.
The second phase is scheduled to begin during the second half of 1998, whereby the shares
will be offered for sale.  For larger companies, an international tender will be arranged.  The screening
criteria will include the bid price as well as a development plan offered by the prospective investor.
The privatization process for strategic sectors will be coupled with other measures such as
training of people to compensate for the decrease in the labour force during privatization.  The
detailed plan for privatization will depend on the specific sector of the economy.  These processes aredescribed in turn.
Telecommunications Sector
Of the strategic sectors, telecommunications is expected to be the first that is privatized.
There are two companies operating in the telecommunications sector: Telekom, which operates the
fixed cable system, and Albania Mobile Cellular company (AMC).  The time schedule foresees theprivatization of AMC, by the second half 1998 and privatization of Telekom during 1999. During the
first quarter Telekom will be transformed into a private company and an international tender is
expected.  It will be possible to merge Telekom and AMC to exploit existing or potential synergies.
The state may ask for the golden share (details still pending).  No more than 20 per cent of the shares
will be sold to the public in exchange for vouche rs.  Prices in the telecommunications sector are
international rates and cover economic costs.WT/ACC/ALB/23/Rev.1
Page 2
Oil and Gas Sectors
The State-owned oil and gas company, Albpetrol, is a vertically integrated company whose
activities include exploration, drilling, refining marketing and servicing.  To partly offset the negative
effect of its financial position, Albpetrol has entered into cooperation with foreign companies.
Privatization of gas and oil is expected to occur during 1999.
Laws will be amended to permit the sale of shares to investors, foreign or nationals.  Less
than 20 per cent of the shares shall be exchanged for vouchers through a public offering.  The State
will keep the golden share (to be specified at a later date) and use it only for issues of national
importance and not for those related to the commercia l activity of the company.  The golden share
will be limited in time, but the duration will depend on a number of internal and external factors (to be
specified later).
Electrical Energy Sector
The only supplier of electricity (of which 95 per cent is hydro-powered production) is the
Albanian Energetic Corporation (KESH), a vertically integrated company.  Privatization will aim at
improving service, quality and corporate efficiency.
The privatization of KESH will pass through two phases, the first being through the use of
management contracts.  During this first phase two projects will continue to be implemented: the
rehabilitation of existing hydropower plants, and transmission and distribution networks; and theimprovement of corporate financing.  The most probable approach for the privatization of KESH will
begin with a management contract and after a period of three to five years, in a second phase, it will
be sold to private investor(s).  The State intends to  keep the golden share, in particular, for the issues
concerning the transmission network (details are forthcoming).  No more than 20 per cent of the
shares will be sold to the public in exchange for vouchers.  Privatization will be coupled with price
liberalization in which electricity rates will approach  marginal cost pricing in a step-by-step approach
(i.e., first recovering full economic cost and then marginal cost pricing).  All other prices in the energy
sector are liberalized.
Mining Sector
Privatization in this sector, expected during 1999, will aim at improving the efficiency of
exploitation of mineral resources.
Chromium
Albkrom is the SOE operating the chromium industry which includes mines, enrichment
plants and ferrochromium facilities.  The sale of Albkrom to investors (foreign or national) is planned.
The state has no intention to maintain interests in  the privatized company.  The government is to
arrange an international tender to begin negotiations with potential investors.
Copper
Albbaker is the SOE operating in the copper industry.  The plan is to first transform the SOE
into a joint-stockholding company during the first phase and to offer the firm for sale.
Transportation Sector
In this sector only the airline companies, ports and railways will be qualified as strategic.WT/ACC/ALB/23/Rev.1
Page 3
Airlines
As a first step Albtransport and the National Agency of Airlines (ANTA) will be transformed
during the second quarter of 1998 into commercial companies.
Ports
The ports will be transformed into commercial companies and possible scenarios include the
transformation of ports into land and yard ports, wh ere the state will retain ownership of the portal
infrastructure.
Railways
The railway enterprise will be transformed in a commercial company during 1998.  Some
auxiliary sectors will be offered for sale.  Possible scenarios of privatization are still under
consideration.
Water Utility Sector
In the water utility sector, the first step, after transforming existing SOE's into commercial
companies, will be to arrange management contracts.  Privatization will be coupled with price
liberalization.
Other Economic Sectors
All the other economic units that are not qualified as strategic shall be privatized through
auctions either as going-concerns or by liquidation.  There are some 600 enterprises and the majorityof them will be sold during 1998.
The existing joint-venture companies where the State has participation have proved to be very
problematic.  The intention is to immediately offer for sale the State's interests respecting the right of
the first refusal.
(b) Monetary and fiscal policies
Question 2.
Please give an update on Albania's price controls, if any remain.
Please provide details on the scope and operation  of the regulatory control of the commodities
where control remains.
Does the Government of Albania plan to eliminate these controls in the future? If so, is there a
timetable for elimination?
Answer:
Price controls remain only on a few medicines and on services such as telecommunications,
energy and water supply services.  Price liberalization will be coupled with privatization of enterprises
in the strategic sectors (i.e., telecommunications, energy, etc.) as provided in the "Law onPrivatization".  See the previous answer for details by specific subsector.WT/ACC/ALB/23/Rev.1
Page 4
Question 3.
Has a specific timetable been set for the liberalization of energy prices?
Answer:
A specific timetable has not been set for the liberalization of energy prices; however, when
the electrical energy firm (KESH) is privatized, price liberalization will follow.  Privatization of
KESH will pass through two phases, the first where the enterprise enters management contracts andthe second whereby the firm is put up for sale to private investors (at which time marginal cost pricing
will be achieved through a step-by-step approach).  The management contracts are anticipated for a
period of three to five years.  All other prices in the energy sector are liberalized.
Law No. 7545 "On Profit Tax" (WT/ACC/ALB/10, page 10, paragraph 30)
Question 4.Are the tax exemptions and reductions provided for in the law generally available, or rather
targeted to certain sectors and/or geographical areas? Do they apply to both nationals and
foreigners?
Answer:
The exemptions from profit taxes are given for juridical persons that are engaged in
production activities.  Foreigners and nationals are given equal treatment in the case of profit taxesand exemptions from profit taxes (from the "Law On Personal Income Tax").
Law "On Personal Income Tax" (WT/ACC/ALB/10, page 11, paragraph 32)Question 5.Can Albania please state whether exemptions are applied with no discrimination on grounds of
nationality and whether they are generally available or targeted to sectors and/or geographicalareas?
Answer:
The taxable treatment of individuals and exemptions are applied equally, i.e.,
non-discrimination.
(d) Foreign and domestic investment policiesQuestion 6.In section II.37. of document WT/ACC/ALB/10 it is stated that "fair and equitable treatment"
is provided for foreign investors under Law No. 7764 "On Foreign Investment".  Does it meanthat national treatment and most-favoured nati on treatment are to be accorded for foreign
direct investment?
Answer:
As it has been mentioned in the documentation provided by the Albanian Government to the
Working Party, Law No. 7764 "On Foreign Investmen t" provides to foreign investors equitable and
fair treatment. This means that, except the right to  buy agricultural land which is provided only to
Albanian nationals, national treatment and most-favoured-nation treatment are to be accorded for
foreign direct investment.WT/ACC/ALB/23/Rev.1
Page 5
Question 7.
In section II.37 of document WT/ACC/ALB/10 it is stated that "the right to impartial dispute
settlement" is provided for foreign investors under Law No. 7764 "On Foreign Investment".
Does Albania have relevant appeal procedures domestically as well?
Answer:
Yes. Article 8, (points 1 and 2) of Law No. 7764 "On Foreign Investment" provides for the
right of impartial dispute settlement. According to this article, foreign investors have the right to
choose the domestic appeal procedures as well as international procedures.
Question 8.
In the law on buying agricultural land refere nce is made to "certain conditions".  Can
foreigners buy agricultural land?
Answer:
Foreigners can in certain conditions lease agricultural land up to 99 years, but they can not
buy agricultural land in Albania.
(e) Competition policies (WT/ACC/ALB/10)
Question 9.
Could Albania please state whether and in which form reorganisation plans provided for in
Chapter III of Law No. 8017 "For Bankruptcy Pr ocedures" involve, directly or indirectly, any
financial support from the State?
Answer:
The reorganization plans provided for in Chapter III of the Law does not involve any direct or
indirect financial support from the State.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing
Question 10.
Law No. 7638, "On Commercial Companies" (WT/ACC/ALB/10, page 3, paragraph 6) dated
19 November 1992.  Limited liability companies must meet certain requirements. Do theserequirements apply equally to foreign-owned companies and nationally-owned companies. Can
all companies engage in internatio nal trade?  Under what conditions?
Answer:
These requirements are equally applied to foreign-owned companies and nationally-owned
companies. Based on Albanian legislation all co mpanies can engage in international trade. The
conditions are stipulated in the respective law.WT/ACC/ALB/23/Rev.1
Page 6
Question 11.
Law on Chamber of Commerce (point 11, WT/ACC/ALB/10). Reference is made to "registered
traders" and "registered foreign trade representa tives". Please give the requirements that must
be met.
Answer:
The requirements that must be met are as follows.
The request directed to the Court of the first instance for registration of Commercial
Companies has to be done by all the partners of a General Partnerships Company, by all partners of a
Limited Partnerships Company, by all administrators of an Limited Liability Company or by all
members of the board of directors of the Public Company.
The law defines some general requirements such as  the obligation to declare and register the
type and terms of company's activity (if it is defined), the official trade name, the headquarters, the
object of the company, the amount of basic assets, the signed date of statute.
Different types of companies, have some additional requirements, such as follows:
(a) for General Partnership Companies; the information on the partners, including their names
and surnames, their dates and places of birth, as well as the provisions of the statute, which
defines the representative duties of administrators;
(b) for Limited Partnerships Company; all the information required on point (a) and the quality as
"limited" partner, but the amounts of contributions of "limited" partners also have to be given;
(c) for Limited Liability Companies the names, surnames, birthdays and places of birth of
administrators and the provisions of the statute which defines the representative duties of
administrators must be given;
(d) for Public Companies the names, surnames, dates and places of birth of the members of the
board of directors, and also the statute provisions which defines the representative duties of
board of directors' members must be given.
The following must also be included in this request:  the statute, firms, and the nomination act
of administrators or board of directors members, a list which include names, surnames, places and
dates of birth of the supervision council members, and in the case of natural assets contributions thereport for these contributions, or, if necessary, the decision of the partners for not asking the expert's
help for these contributions.
The requests for such registration have to be accompanied, in the case of Limited Liability
Companies and Public Companies, with the certificate of the funds depositor, which results from the
reimbursement of the basic part of the assets, or from signing shares for cash contribution.
In cases when running an activity (included in the subject of the company) an official
authorization is required, a notified copy of this authorization will be necessary for registration.
The company will be registered when its statute is in accordance with the law and when all
documents required by the law are fulfilled.WT/ACC/ALB/23/Rev.1
Page 7
The law also defines that these provisions are equally applied for Albanian and foreign
persons establishing a branch or representative office in Albania.
(b) Characteristics of national tariff
Question 12.
Section II.39. (WT/ACC/ALB/10) - Law No. 7609 "On Customs Tariffs":  On which products
does Albania apply composites rights (duties)?
Answer:
There are no products on which Albania applies composites rights (duties).
Question 13.
Has Albania completed work on the draft regulatio ns for the law on customs tariffs? Will the
regulations be implemented prior to accession?
Answer:
The draft regulations for the law on customs tariffs are still under preparation. We are
working to realize their implementation within the time permitted by the respective agreement.
Question 14.
Additionally, this delegation is interested in re viewing Law No. 7609. Please provide this law to
the Secretariat for review by Working Party members.
Answer:
Law No. 7609 has been amended.  A copy of Law 7609 and all of the amendments affecting
the details of this law is being provided to the Secretariat (see Annex).
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 15.
Law No. 7609 "On Customs Tariffs". This law appears to provide information on special
customs duties, anti-dumping duties, and countervailing duties. In the response to question 2 in
WT/ACC/ALB/8/Add.1, Albania notes that the circumstances in which special customs duties
can be imposed have not been defined and will be addressed when Albania develops laws and
implementing regulations for the law on customs tariffs.
It is important that criteria for imposing spec ial duties be implemented in a transparent, nor
arbitrary, manner which is consistent with WTO rules. In order to fully understand the current
system in Albania, it would be helpful to provide member countries with these draft regulations
as soon as possible.
In reply to a question on the Customs Code (Question 4, WT/ACC/ALB/3) Albania states that
special customs duties will be applied to prevent unjust competition. What constitutes unjustcompetition under Albanian law?WT/ACC/ALB/23/Rev.1
Page 8
Answer:
Albania is still in the phase of preparation of the legislation dealing with anti-dumping and
countervailing duties. Once the draft regulations are ready they will be provided for comments.
(f) Import licensing procedures (WT/ACC/ALB/18 and WT/ACC/ALB/19)
Question 16.
Albania does not maintain, as general rule, li censing procedures for the importation of goods.
For more details please refer to document WT/ACC/ALB/19 and its comments.
Please list products subject to import licensing by HS line and give the WTO justifications for
each.
Answer:
See Question  18.
Question 17.
Please confirm that there are no quotas on imports of live animals, seeds and medicines/drugs.Answer:
There are no quotas on imports of live animals, seeds and medicines/drugs.
Question 18.
Can a licence be obtained at short notice, for example, in the case of goods arriving at a port
without a licence?
Answers 16 and 18:
There are no import licensing requirements or restrictions.  Any private firm (juridical person)
can import any product without a license, provided that the importer meets the technical regulations.
If the importers do not meet the technical regulations the goods are not allowed to enter the
Albanian border.
Question 19.
What conditions are attached to the issuin g of a licence to trade in pharmaceuticals?
Answer:
There are State institutions and private-owned firms (physical persons) that are dealing with
the importation of pharmaceutical products to  Albania. No import licence is needed for importingpharmaceutical products. These subjects are obliged to fulfil the following technical regulations to
start their activity:WT/ACC/ALB/23/Rev.1
Page 9
(i) they must have a warehouse with a minimum surface of 90  square meters;
(ii) the technical manager must be a university graduated pharmacist having at least four
years work experience;
Question 20.
Could Albania provide more information on the li censing system for seeds and seedlings, and
confirm that the system is non-discriminatory?
Answer:
Please refer to the answer to question 16.
Question 21.
I. Outline of systems concerning the requireme nt that imported medicines and drugs must
have an import licence:
Are these automatic or non-automatic licences? If  automatic, please indicate the time frame
within which they must be granted. If non-automatic, please describe in detail the criteria thatthe imported medicines and drugs must meet to qualify for the licence. Is "verification" the only
criterion? What is "verified"?
Does Albania have a similar registration and licen sing system in place for the sales of domestic
production of similar articles? To what extent are the requirements listed in WT/ACC/ALB/18
applied to domestic production of similar goods and how is this done?
Why has Albania not included material on its registration requirements for pesticides in
WT/ACC/ALB/19?
Please answer for pesticides the same questions as asked above on medicines and drugs.
Ministry of Agriculture and Food - live animals
Albania states that the Ministry of Agriculture and Food is in charge of organizing the licensing
procedures for import and export of live animals and for imports of seeds and seedlings.
Is the licensing on live animals statistical or restrictive licensing?
Albania states that "by decision of the Centra l Commission of Improvement of Race (CIOR) the
applicants are given the requested "permission" on the base of which the Albanian Veterinary
Service issues the licence for import/export of the requested materials"
What criteria must be met to obtain "permission"? If "permission" is denied how may
applicants appeal the decision?
Seeds and seedlings
Albania states that if the requested varieties for import are not included in the respective
Albanian catalogue, but from a country of the European Communities, the importation may beallowed, only after the approval of the ministry of Agriculture and Food on the request of the
State Entity of Seeds and Seedlings (SESS).WT/ACC/ALB/23/Rev.1
Page 10
The statement that "importation may be allowe d" implies that importation may also not be
allowed.
The conditions need to be met in order for s eeds to be imported? When and on what basis
would importation not be allowed?  Why are the European Communities singled out for this
special treatment? What would the status be for varieties originating in Asia or North America?
Why would new varieties of seeds and seedlings not be allowed to be imported?Answer:
As we have mentioned above, no licences are needed for the importation of medicines and
drugs. Refer to the answer to question 16.
(h) Customs valuation (WT/ACC/ALB/8/Add.1 and WT/ACC/ALB/16)
Question 22.
Will Albania modify Article 5(3) of its Law on Customs Valuation to bring it into line with the
corresponding Article 1(2)(b) of the WTO Ag reement and to incorporate its respective
Interpretative Note?
Answer:
See Answer 31.
Question 23.
Will Albania modify Article 13, item 2 of this la w, which refers to "building, fitting" instead of
"erection, assembly" in the correspo nding provision in the Agreement?
Answer:
Yes. Albania will modify the english version with the appropriate words "erection, assembly".
Question 24.
In the response to question 1 of WT/ACC/ALB/8/Add.1 Albania states that minimum prices are
a measure against "false invoices", i.e. against fraudulent customs valuation declarations.
Does Albania intend to enter a reservation under paragraph 2 of Annex III of the Customs
Valuation Agreement to enable them to retain  minimum values on a limited and transitional
basis?
Is Albania prepared to take account of the Decision of the WTO Valuation Committee which
envisages the use of secondary valuation methods (i.e. other than the "price" paid for the goods)
to combat the practice of suspect of fraudulent valuation declarations?
Answer:
Albania is working to eliminate the minimum custom values and will not make a reservation
according to paragraph 2 of Annex II of the Customs Valuation Agreement.  Albania's customsvaluation methods will be in accordance with Article 7 of the GATT.WT/ACC/ALB/23/Rev.1
Page 11
Question 25.
The response to question 1 of the WT/ACC/ALB/8/Add.1 concerning the use of minimum
import prices for customs valuation states that minimum import prices for import valuation are
used primarily to counter false invoices.
The use of minimum import prices is not consistent with the WTO Customs Valuation
Agreement, which lists approved alternative fo rms of valuation when confronted with, e.g,
under invoicing.
Has Albania corrected this aspect of its customs valuation regime and brought it into
conformity with WTO provisions?
If not, how does Albania intend to proceed to correct the practice prior to accession?
Answer:
Some minimum prices still exist as a measure against fraudulent practice; however, when the
Customs Code passes into Law the practice of using minimum prices will cease.
Question 26.
With reference to the statement under question 13 in WT/ACC/ALB/16, please give a status
report on Albania's efforts to incorporate th e Interpretative Notes of the WTO Customs
Valuation Agreement in its customs valuation laws.
Answer:
See Answer 31.
Question 27.
In the response to question 34 of WT/ACC/ALB/8/Add.6, Albania notes that it has prepared a
draft Customs Valuation Law that addresses the is sue of valuation on the basis of transaction
value.
What is the relationship of this draft law to Albania's Customs Code of 1992, Law No. 7609 "On
Customs Tariffs" as amended in 1995.
Answer:
The Law "On Customs Valuation" intends to complete Article 17 of Law No. 7609, dated
22 September 1992 "On Customs Tariffs". According to Article 17 of the above-mentioned Law, thecustoms value is based on the transaction value, as the Law on Customs Valuation defines the
respective methods in defining the transaction value.
Question 28.
Is the draft Law on the Customs Valuation approved by the Parliament ?WT/ACC/ALB/23/Rev.1
Page 12
Answer:
Yes. Law No. 8187 "On the Customs Valuation" was approved by the Albanian Parliament on
23 January 1997.
Question 29.
Are Articles 1.2(b), 5.2 and 6.2 of the Agreement of entering into operation of Article VII of
GATT 1994 in force?
Answer:
The Customs Code was prepared with the assistance of the European Union (Customs
Assistance Mission to Albania) to ensure its compliance with the WTO.  At present the Customs Code
is under review by the European Union.
Question 30.
When and where will the exchange rates be published as requested by Article 9.1 of the WTO
Agreement on Customs Valuation?
Answer:
As required by Article 9.1 of the WTO Agreement on Customs Valuation the exchange rates
will be published on daily basis by the Bank of Albania.
Question 31.
In what manner are the Interp retation Notes of the Agreement included in the respective
Albanian legislation?
Answers 22,26 and 31:
The following statement applies to each of the three questions.  The Law on Customs
Valuation has been modified and a draft of the new Customs Code has been prepared.  A copy of the
new draft on the Customs Code is provided (see Annex) to the Secretariat.  The draft was preparedwith assistance from the European Union to ensure its compliance with the WTO.
(j) Pre-shipment inspection
Question 32.
With regard to pre-shipment inspection in Albania, who conducts the inspection, Albanian
customs officials or an agent of the government?
Will importers be able to easily access all applicable laws and regulations related to
pre-shipment inspection activities?WT/ACC/ALB/23/Rev.1
Page 13
Answer:
In the draft of the Customs Code, Chapter 2, Section 2, Article 11(3) specifies the role of the
customs authorities.  It is the customs authorities (and not an agent of the government) which will
conduct pre-shipment inspections.
(k) Application of internal taxes on imports
Law No. 7678 dated 3 March 1993 "On Excise Taxes in the Republic of Albania", changed
by Law no.  8247 dated 2 October 1997 "On some changes to Law No. 7678" dated 30 March 1993,
"For the Excise Taxes in the Republic of Albania".
We would like to emphasize that all the questions and answers concerning the excise taxes
will be referred to the above mentioned laws. All other provisions concerning the excise taxes, some
of which are mentioned in this questionnaire are abolished. Therefore some of the questions and
answers become unnecessary.
Question 33.
Concerning Law No. 8083 "For Some Changes to Law No. 7547 and its Amendments "On
Excise Taxes in the Republic of Albania" (page 5, paragraph 29), could Albania please list the
alcoholic drinks which are subject to the increased rates of excise duties?
Answer:
The list of the domestic and foreign products that are subject to excise taxes and the rate of
the tax is provided in the table below.  The "Law on Excise Taxes" is being submitted to the
Secretariat (see Annex).
Items That are Subject to the Excise Tax and Their Rate of Taxation
Items that are subject to the excise tax Percent or fixed rate
of taxation
A. Tobacco and tobacco products
tobacco for consumption
domestic 70 per cent
imported 105 per cent
cigarettes
Category I – imported 45 lek per packet
Category II – imported 25 lek per packet
Category III – imported 18 lek per packet
Category III – domestic 9 lek per packet
cigars – imported 2,240 lek per
kilogram
B. Alcoholic beverages
beer
domestic 40 per cent
imported 65 per cent
wineWT/ACC/ALB/23/Rev.1
Page 14
Items that are subject to the excise tax Percent or fixed rate
of taxation
domestic 40 lek per litre
imported 50 lek per litre
raki
domestic 90 lek per litre
imported 115 lek per litre
cognac, whisky, rum, and similar beverages
domestic 90 lek per litre
imported 150 lek per litre
C. Soft drinks, fresh beverages
domestic 5 per cent
imported 30 per cent
D. Mineral and carbonated water
domestic 0 per cent
imported 20 per cent
E. Coffee 30 per cent
F. Petroleum by –products
gasoline
domestic gasoline with octane rating 75 15 per cent
domestic gasoline with octane rating 75.1-89.9 47 per cent
imported gasoline with octane rating 89.9 60 per cent
imported gasoline with octane rating 90+ 50 per cent
gas oil
domestic 20 per cent
imported 40 per cent
valvoline 80 per cent
lubricating oils of all kinds and greases
domestic 40 per cent
imported 80 per cent
other heavy oils (mazut, solar), oil coke; bitumen;
liquid gas; sulphur; psylon (ksylol); solvent 25 per cent
More details and justifications related to the measures are to be taken in the future to narrow
the excise tax differentials between foreign and domestic products.  These changes are forthcoming.
Question 34.
In the response to question 1 in WT/ACC/ALB/8/Add.3, Albania acknowledges that it is taking
steps to address the differential excise tax on imports and domestic products. The informationin response to question 2 and the description of Law No. 8083 of 7 March 1996 in
WT/ACC/ALB/10, however, indicates that in a recent revision of Albania's excise taxes,
discriminatory taxes were not eliminated, and in  some cases it appears that new discrimination
taxes were applied or the margin of discrimination increased.
Please explain precisely the steps Albania is taki ng to equalize the excise tax of imported and
domestic products prior to accession, and the timetable Albania has for taking such measures.WT/ACC/ALB/23/Rev.1
Page 15
Albania should make a comprehensive report to th e Working Party on:  (a) the scope, level and
the status of its current excise taxes, listing th e products subject to these taxes by product and
HS number;  (b) specific steps Albania is taking to eliminate discrimination against imported
items in terms of the level of tax applied;  and (c) Albania's plans to eliminate the tax level
differences among various distilled alcoholic beverages in conformity with recent dispute
settlement decisions.
Answer:
See Answer 42.
Question 35.
The further implementation of discriminatory taxes during Albania's accession is worrisome
development and only complicates the negotiations. Albania should commit not to implement
any further measures inconsistent with the WTO Agreement during the accession negotiations.
Answer:
Decree No. 1511 "For Some Changes to the Law on Excise Duties in the Republic of
Albania", No. 7678 dated 3 March 1993, (changed by Law No. 8083, dated 7 March 1996 and
approved on 29 June 1996)  defines the applicable excise tax to certain commodities as follows:
Percentage excise (%)
Soft drinks:
- domestic 5
- imported 30
Mineral and carbonated water:
- domestic 0
- imported 20
Petroleum  by-products:
- gasoline with octane rating 45-89.9:
- domestic 53
- imported 60
- Gasoline with octane rating above 90 50
Diesel:
- domestic 49
- imported 40
- domestic kerosene with liberalized price 16
For all types of petroleum by-products not listed under "Petroleum by-products" an excise
duty of 100 per cent will be imposed.WT/ACC/ALB/23/Rev.1
Page 16
Question 36.
In the response to question 2 of WT/ACC/ALB/8/ Add.3, Albania states th at commodities needed
for investment in tourism activities are exempt from import duties and excise duties when such
commodities are not found in the required quality, quantity and price in the domestic market.
Tourism could encompass a broad range of activities. Does this exemption also apply to food
products imported by the hotel/restaurant industry?
How are these exemptions administered?
Referring to Law No. 8163 dated 7 November 1996 which approves the amendment to the
Decree No. 1609 dated 19 September 1996 "On the chan ge to law No. 7665 dated  21 January 1993,
"On Priority Development Tourism Zones", it is explained as follows:
Goods and merchandises imported for the sole purpose of investments are exempted from
custom duties. This exemption is not implemented for the physical and/or juridical persons
granted the title "promoted persons", and to projects and investments approved before the date7 November 1996.
(Please find attached the Decree and the new Law -  see Annex.)
Question 37.
Tax rate differentials exist for domestic and imported liquors, ethyl alcohol and kerosene.
Please list any other products for which tax rate differentials exist and give details. How doesAlbania view these differentials in terms of WTO provisions, particularly GATT Article III?
Furthermore, is the same rate applied to all imported products?
Answer:
Knowing the non-conformity of the excise tax with WTO provisions, particularly of GATT
Article III, Albania is working to amend it. The amendment will include the same applied rate to allimported products, the same as the local products.
Commodities Excise Rate %
1. Tobacco and tobacco production
Cigarettes
- domestic 50
- imported 100
Cigar
- domestic
- imported 105
Tobacco for consumption 70
Cigarettes paper for sale 50
2. Soft drinks
- domestic 5WT/ACC/ALB/23/Rev.1
Page 17
Commodities Excise Rate %
- imported 30
3. Mineral and carbonated water
- domestic 0
- imported 20
4. Petroleum by-products
RON up to 75
- domestic 15
- imported 0
RON over 75.1 until 89.9
- domestic 47
- imported 0
RON up to 89.9
- domestic 0
- imported 60
RON over 90
- domestic 0
- imported 50
Gasoil
- domestic 20
- imported  40
Valvoline
- domestic 80
- imported 0
Lubricating oils of all kinds and greases
- domestic 80
- imported   0
Others; heavy oils (mazut,solar); oil coke;  bitumen; liquid gas;
toluene; sulphur; psylol (ksylol); solvent
- domestic 25
- imported 0
Except kerosene, the importation of any other petroleum by-products not included in section 4
will be taxed with 300 per cent excise tax.
The imported liquid gas and domestic production of heavy oils (mazut;  solar) used by the
population for heating is exempted by excise tax.
The importation of cigarette papers for the production of cigarettes is exempted by the
excise tax.WT/ACC/ALB/23/Rev.1
Page 18
(m-o) Anti-dumping and countervailing duty measures
Question 38.
Could Albania please outline its anti-dumping and countervailing duty legislation?
Could it also please state how it views it in terms of WTO requirements?
Answer:
The Albanian Government in cooperation with the European Commission, through its
Customs Assistance Mission to Albania, is in the pr ocess of drafting legislation on anti-dumping and
countervailing duties.  It should be prepared and distributed to the Council of Ministers for their
approval by June/July of 1998.  The document is expected to be prepared in accordance with WTO
requirements.  A copy of the draft will be provided to the Secretariat when it is available.
2. Export Regulation
(b) Customs tariff nomenclature, types of duties, etc. (WT/ACC/ALB/10)
Question 39.Section I(B).28. (WT/ACC/ALB/10) Law No. 8083 "On Excise Taxes":  This Law includes
modifications on the excise tariffs on many alco holic drinks and on kerosene, but it does not
mention the abolition of discriminatory tariffs on imported products.  This practice presents in
fact a clear violation of Article III of GATT 1994.  Does Albania foresee to modify this Law?
Does this case has a fixed date?
Answer:
See Answer 42.
(c) Quantitative export restrictions (WT/ACC/ALB/8/Add.3 and Add.9)
Question 40.
What is the WTO justifications for maintaining export prohibitions on wood and wood
products and on metal waste and scrap ?
Answer:
Export prohibitions on wood and wood products are temporary and related to the
implementation of the law on forestry and the esta blishment of the responsible institutions for the
forestry's administration, control and services. Meantime, the export prohibitions on all kinds of metalwaste and scrap aim to prevent the exportation of these commodities before the privatization of all the
industrial enterprises is concluded.
Question 41.
Is Albania prepared to consider converting thes e prohibitions to export duties, which would
then be reduced and eventually phased out over a negotiated period?WT/ACC/ALB/23/Rev.1
Page 19
Answer:
Albania has taken considerable steps to eliminate export licensing requirements and
prohibitions. The export prohibitions on wood, wood  products, metal waste and scrap are temporary
measures. Currently, Albania does not intend to convert these prohibitions into export duties.
Question 42.
Concerning document WT/ACC/ALB/8/Add.3 - When Albania will definitely take necessary
measures to cut the discrimination in the excise rights?
When Albania will definitely cut off the discrimination tariffs on the mineralized imported
beverages?
Answers 34, 39 and 42:
Albania has kept a differential in the level of excise taxes for domestic versus imported goods
for the following reasons: (1) excise taxes are one of the most important sources of revenue for the
State budget and the taxes collected from imports comprise a large share of those revenues; and(2) collection of the excise taxes from imported goods is more complicated because of the high rates
of evasion (associated with imported goods) whic h put domestic producers at a disadvantage.
We are in the process of strengthening the both the customs authorities and the tax
administration office, and we are going to reduce the overall rate of tax evasion.  Moreover, we will
equalize the level of excise tax on foreign and domestic goods.  New legislation is currently beingdrafted under the General Directorate of Taxation whereby the differential treatment on excises taxes
on foreign versus domestic products is to be narrowed.
The law does not specify when discriminating tariffs will be eliminated.
(d) Export licensing procedures
Question 43.We appreciate Albania's efforts to eliminate export licensing requirements and prohibitions.
Please explain the rationale behind export licen sing requirements for firewood and unprocessed
wood. When will this list of certain wood products and scrap metals be liberalized, particularly
firewood and unprocessed wood?
Answer:
The export prohibitions for firewood and unpr ocessed wood are temporary measures, aiming
to establish the legal framework for forestry's exploitation and protection, as well as the appropriate
institutions. The export prohibitions for scrap metals are linked with the privatization process of the
industrial enterprises.WT/ACC/ALB/23/Rev.1
Page 20
(f) Export financing, subsidy and promotion policies
Question 44.
At the moment Albania does not apply any export subsidy.  Does Albania intend to apply export
subsidies in the medium term?
Answer:
Albania does not exclude the possibility of the application of export subsidies in the future.
3. Internal Policies Affecting Foreign Trade in Goods
(b) Technical regulations and standards (WT/ACC/ALB/15)
Question 45.
The introduction states that technical rules will be mandatory" but also that "standards will be
voluntary except when they have been declared obligatory through law". Will Albania make a
clear cut distinction between technical regulati ons, with which compliance is mandatory, and
standards, with which compliance is not mandatory?
Answer:
According to our draft law all Albanian standards will be voluntary. In the cases when
Albanian standards will be used, references in other laws or for technical rules or part of them will
become mandatory. The decision will be taken by re spective authorities, not by the DSC (Department
of Standards and Certification).
Question 46.
Albania centralises the functions of standardization, accreditation and certification through the
activity of one body. We believe that accreditation should be a separate activity performed by
public or close-to-public bodies. Standards-making and certification should also be separate
functions. In practice, providing they can prove that they operate independently and that thestandards process is open, transparent and free from commercial influence, the standards body
could possibly operate a certification function. However, the market sh ould also be open to
other third party certification bodies. The standards body should be independent from
Government. This is often done by a Memorandum of Understanding and does not preclude
Government grants or representation in it.
Does Albania share these views?
Will it organise standardisation, accreditation and certification accordingly?
Answer:
The new draft on the "Law of Standardisation" has been submitted to the various ministries
for their comments, after which the document proceeds to the Council of Ministers for approval.Until such a document is prepared and approved, a decree on the "Code of Good Practice for
Preparation, Adoption and Application of Standard s" cannot be provided.  A draft of the "Law on
Standardisation" will be forthcoming.WT/ACC/ALB/23/Rev.1
Page 21
Question 47.
In general information on standards provided under this section Albania states that Albanian
standards - called STASH standards - are compiled by "all interested parties and approved by
the Standardization Council attached to the DSC".
Are foreigners eligible to participate in the st andards setting process as "interested parties"?
Answer:
Foreigners are eligible as well as Albanians to  participate in the standards setting process as
"interested parties" in the Technical Committee or work-groups. We have already started the
implementation of this process, in which some foreign companies are participating as well.
Question 48.
In WT/ACC/ALB/15 and in the response to question 3 of WT/ACC/ALB/8/Add.2 Albania
indicates that a draft "Law on Standardization and Related Activities" provides for the
development and application of "technical rules" and "standards".  It also allows third partycertification to be carried out by either public and private bodies such as the Department of
Standardization and Quality (DSC) or accredited laboratories (Article 8, points 1 and 5), and
that mandatory certification shall be carried out when requested by ministries and only for
products dealing with health and safety.
Please discuss how Albania intends to submit the draft law on standardization and related
activities to the Secretariat. When will this law be submitted?
We seek prompt submission of this legislation to the WTO in order to review the proposed
procedures in light of WTO TBT requirements.
Answer:
A draft of Albanian Law "On Standardization and Related Activities" was provided to the
Working Party on 29 October 1996 during the scheduled meeting of Albanian delegation with
Working Party (WT/ACC/ALB/20).  Regarding the Certification Department, it operates as a third
independent party.
Question 49.
In part 2(F) Albania states that regulations will accompany the Law on Standardization and
Related Activities. Albania notes that internat ional standards will be adopted as "Albanian
standards" provided they serve the interests of  the country towards the lifting of technical
barriers in trade and introduction.
Please explain the intent of this statement. Spe cifically, when would international standards not
be used as basis for Albanian standards?WT/ACC/ALB/23/Rev.1
Page 22
Answer:
Our main attention for the time being is focused on the adoption of regional and international
standards (ISO, IEC, EN) as Albanian standards. In this regard, the international standards will not be
used only for some local products, which are not part of international trade.
Question 50.
What is the expected length of time allowed for public comment on draft standards under the
draft law?
Answer:
The expected length of time allowed for public comment on draft standards is not provided
under the draft law. There is decree No. 529 adopted on 12 December 1992 of the Albanian
Government, which provides the time allowed for public comments. According to this decree, the
period is from three to six months before approval of legislation and the same period of time after
approval of the draft law.
Question 51.
The questionnaire states that Albania foresees that "technical rules and standards will apply to
both Albanian and foreign products on a non-discriminatory basis.
We commend Albania for understanding the importance of applying standards equally between
domestic and foreign products, and we encourage  Albania to follow through this policy. We
remind Albania that the TBT Agreement and GATT Article III require that imports be treated
the same as domestic products.
Answer:
The clause of national treatment is provided in the draft law on standardization and related
activities.  Article 3 of the Albanian law defines the same treatment for imported and domesticproducts.
Question 52.
Please clarify the meaning of "sub-national au thorities" in section 2(f) of the document
WT/ACC/ALB/15. If this means local governments, it should be replaced by "local
governments".
Answer:
The "sub-national authorities" in section 2(f) of document WT/ACC/ALB/15 means the local
governments.
Question 53.
What the legal framework treating the respectiv e questions on technical barriers to trade
(WT/ACC/ALB/15) will be applied?WT/ACC/ALB/23/Rev.1
Page 23
Answer:
The legal framework treating the respective questions on technical barriers to trade will be
provided with the approval of the draft on the "Law  On Standardisation".  This proposed law was not
approved by the previous Parliament.  Hence, the process was reinitiated by requesting comments
from the ministries.  The current status of the proposed draft law is pending approval from the
Council of Ministers.  Once the Council approves this, it will go to the Parliament for its approval.  Acopy of the draft in English is forthcoming.
According to proposed draft law all Albanian standards will be voluntary and will conform to
international standards provided that the standard s serve to reduce the technical barriers to trade
and/or introduce new technologies.  The technical regulations will be mandatory and are in full
compliance with EU Directives 83/189 and 88/182.  Article 3.7 (which may have been the source of
confusion in the distinction between a standard and a technical regulation) has been withdrawn from
the previous draft of the "Law on Standardisation and Related Activities".  The current draft lawprovides very clear distinctions between a standard and a technical regulation.
Question 54.
In what stage are the measures and the dispos itions for making possible the national and
international authorities to rapidly communi cate the information on their projects?
Answer:
The draft law on standardization includes pr ovisions on the ways of rapid communications
with national and international authorities, for making their participation in the projects possible .
(c) Sanitary and phytosanitary measures
Question 55.
In section III.4. of document WT/ACC/ALB/18 it is  stated that "The registration of a drug is
valid for five years". Does it means that the re gistration of a drug must be made (renewed)
every five years? If so, what is the reason or rationale for this system?
Answer:
Yes. The registration of a drug must be made (renewed) every five years. The reason or
rationale for this system is that local importers should anyhow consult with the respective authoritiesfor the continuation of imports of the materials of this field.
(e) State-trading practices (WT/ACC/ALB/8/Add.7 and WT/ACC/ALB/13 and Add.1)
Question 56.
Does Albania consider that any of the enterprises listed in WT/ACC/ALB/13 should be notified
under Article XVII of the GATT 1994?WT/ACC/ALB/23/Rev.1
Page 24
Answer:
Albania does not consider that any of the enterprises listed in WT/ACC/ALB/13 should be
notified under Article XVII of the GATT 1994.
Question 57.
Are any of the enterprises listed subject to any form of Government control, including directives
in relation to their operation?
Answer:
None of the enterprises listed are subject to  any form of Government control, including
directives in relation to their operation.
Question 58.
Are all the enterprises listed free to purchase a nd sell goods on the international markets and to
acquire imports from any origin?
Answer:
Yes, all the enterprises listed are free to purchase and sell goods on the international markets
and to acquire imports from any origin.
Question 59.
Are the persons working for the enterprises listed to be Government employees?
Answer:
The persons working for the enterprises listed are to be considered Government employees
only because the enterprises are State-owned
Question 60.
Does Albania consider that there are any enterpri ses which fall within the scope of Article VIII
of the GATS?
Answer:
Albania does not consider that there are enterprises which fall within the scope of Article VIII
of the GATS.
Question 61.
In WT/ACC/ALB/8/Add.7 and WT/ACC/ALB/13, Albania reported that 78 per cent of its
imports are generated by privately owned firms and that most of the remainder is imported by
State enterprise for their own consumption.WT/ACC/ALB/23/Rev.1
Page 25
Answer:
Please, consider the answers of the above questions on State-trading enterprises.
Question 62.
Please describe the nature of this consumption. Are any of these firms manufacturing
enterprises? What sort of State firms account fo r this trade? Are State firms importing for their
own use subject to taxes and tariffs on that trade?
Answer:
State enterprises may produce, manufacture, sell and buy without any limitation (please, refer
to the Law on State Enterprises, document WT/ACC/ALB/22).
In our case, a State enterprise may import for their own use different materials, which will
serve as raw material for the production of this enterprise. For example, one State enterprise which
produces different mechanical parts imports metal sheet and other materials, which after processing in
the enterprise are ready made products. In this case no exemption from any customs duties or otherfacilities are applied for the State enterprise.
Question 63.
Please describe the products exported by State-owned enterprises, i.e. the 21 per cent of exports
that are not accounted for by the private sector.
Answer:
For the answer to this question we would like to mention only some of the main extracting
State enterprises in the field of minerals such as chromium ore, copper, etc. These products are part of
21 per cent of exports that are not accounted for by the private sector.
Question 64.
Please describe in more detail the role of agroexport in the trade and internal distribution of
agricultural products in Albania.
Answer:
We would like to clarify that agroexport in th e trade and internal distribution of agricultural
products does not have any advantage or privileges over the other State-trading enterprises (for more
details please refer to the Law on State Enterprises, WT/ACC/ALB/22).
(l) Government procurement practices (WT/ACC/ALB/8)
Question 65.
Does Albania intend to join the Government Procurement Agreement? If not, why?WT/ACC/ALB/23/Rev.1
Page 26
Answer:
Yes. Albania will consider joining in the Go vernment Procurement Agreement in due time.
Question 66.
Does the Albanian Government collect statistics on procurement?
Answer:
The preparation of an amendment to the Public Procurement Law to provide the collection of
procurement statistics is under consideration.
Question 67.
What is the overall value of public sector purchasing in Albania?
Answer:
The overall value of public sector purchasing in Albania for 1996 is about US$365,8 million.
This amount counts about 13 per cent of the GDP.
Question 68.
Could the government provide a breakdown of the public procurement market both by
contracting entity and product type?
Answer:
Currently the Government of Albania could not provide a breakdown of the public
procurement market. This would be possible only when the law would provide the collection ofstatistics on procurement.
Question 69.
According to Article 9 of the "Public Procuremen t Law" no discrimination is allowed on the
basis of nationality.  Does this mean that all foreign suppliers get the same treatment as national
suppliers when participating in tenders ?
Answer:
Albanian Public Procurement Law states that no supplier shall be excluded from participation
in public procurement on the basis of nationality, including the country of origin of their products.
Thereby, procurement proceedings are open for all tenderers on equal terms, regardless of nationality,
type of ownership and juridical form. National treatment means that a foreign supplier, foreignproducts or services must be treated no less favourably than domestic suppliers and products.
Question 70.
Is there an offset policy and, if so, how often a re offset arrangements negotiated on a case-by-
case basis?WT/ACC/ALB/23/Rev.1
Page 27
Answer:
There is no an offset policy or any other offset arrangements negotiated on a case-by-case
basis.
Question 71.
Does Albania's procurement law make provision for a system of domestic and price
preferences?
Are these mandatory or optional?
How, precisely, do they operate?
How are they managed?
Answer:
Albania's procurement law does not make provision for a system of domestic and price
preferences, therefore there are no mandatory or optional price preferences.
Question 72.
Does a policy to support local industry exist in Albania?
Answer:
Albania does not maintain policies to support local industries related to government
procurement.
Question 73.
Is the procurement of certain products reserved for local industry?
If so, is a list of these products available?
Answer:
The procurement does not provide the reservation of certain products of local industry,
consequently there are no lists of certain products reserved for local industry.
Question 74.
Does Albania have any trade agreements with other countries which cover public procurement?
If so, which countries?
Answer:
Albania does not have any trade agreements with other countries which cover public
procurement.WT/ACC/ALB/23/Rev.1
Page 28
Question 75.
Albania's Law on public procurement does not appear to address the issue of adequate
challenge procedures. According to the info rmation provided, decisions of the Public
Procurement Agency are final and not subject to control through the national courts. This
situation causes difficulty because, even if fo reign firms are allowed to participate in the
tendering process, they can not enforce their rights.
- Is Albania prepared to modify its law to provide for such control?
Answer:
Article 43 of the Albanian Public Procurement Law defines that in a case when a tenderer is
not satisfied with the decision by the procuring entity, or the decision is not made within the time
limit, the candidate is entitled to challenge the decision and file the complaint with the Public
Procurement Agency.
Among the important remedies, the Public Procurement Agency may decide on, the following
should, in summary, be observed:
- prohibit the procuring entity to act or de cide unlawfully, or from following an unlawful
procedure (article 45);
- annul, in whole or in part, an unlawful decision of the procuring entity except for an award of
contract decision already made by a procuring entity (article 45);
- the decision of the Agency is final and not subject to control through the courts (article 45).
The Albanian Government is working to amend the existing law on public procurement in
providing the right for further appeal. When the draft amendment is ready, it will be provided for
comments.
Question 76.
In the answer to question 5 of document WT/ACC/ALB/8 it is stated that "open tendering is the
type of procedures mainly addressed to local companies, but it allows the participation of other
companies as well, despite their nationality" und er the new procurement law. Does it mean that
procedures and requirements which are different from those for national firms are applied to
foreign firms, i.e. national treatment is not ac corded to foreign firms? If so, what are the
procedures and requirements for foreign firms?
It appears that foreign firms participating in such open tendering are not discriminated against
on the basis of nationality, i.e. non-discriminato ry treatment is accorded to them. Is this the
case?
Answer:
According to Law No. 7971 "On Public Procurem ent" adopted on 26 July 1995, participation
requirements and procedures of the companies in open tendering are equal either for national
companies, or for foreign companies. In Article 9 of the said law it is stated that "physical or juridical
persons shall not be excluded from participation in public procurement procedures prescribed in the
Albanian Procurement Law.WT/ACC/ALB/23/Rev.1
Page 29
Question 77.
If procurement methods other than open tend ering are to be used, is the above-mentioned
principle of national treatment and non-discri minatory treatment applied to foreign firms?
Answer:
The above-mentioned article does not refer to any special procurement procedures, it is
applied for open tendering procedures, as well as for all types of procurement procedures prescribedin the Albanian Procurement Law.
Question 78.
We commend Albania for its progress in improving the transparency and access of its
government procurement rules. We look forwar d to Albania's application for membership in
the Agreement on Government Procurement. Has Albania decided to apply?
Answer:
The Government of Albania is working in line with the procurement policies of the
international organizations for improving the transparency of the public procurement rules. In the
future Albania will apply to become a member of the Agreement on Government Procurement.
4. Policies Affecting Foreign Trade in Agricultural Products (WT/ACC/ALB/8/Add.1,
WT/ACC/ALB/9, WT/ACC/ALB/17 and WT/ACC/SPEC/ALB/1)
Regarding the answers to the following questions, please refer to the explanatory note on the
Albanian Agriculture Schedule, which has been provided to the Secretariat
(WT/ACC/SPEC/ALB/1/Add.1).   This explanatory note includes the detailed information on foodstuff
aid as well as on the method of the AMS calculation.
(a) Imports
Question 79.Are there many modifications in the customs du ties applied on the agricultural products?  If
yes, for which sub-products?  Shall the maximum tariff in the category 2403 be substituted in
the short term?
Answer:
There is no specific modification for agricultural products. The maximum tariff for
category 2403 is 30 per cent and no substitution is planned in the short term. For more detailed
information, please consult the applied rates of tariffs in Albania sent with the offer on binding tariffs
in May 1997 to the WTO Secretariat (WT/ACC/SPEC/ALB/3).WT/ACC/ALB/23/Rev.1
Page 30
(b) Exports
Question 80.
Can Albania confirm that all discriminatory excise taxes on spirits will be eliminated before
accession?
Answer:
Albania confirms that "all discriminatory excise taxes on spirits will be eliminated before
accession"
Question 81.
Can Albania confirm that there is no limitation  for obtaining tobacco or liquor tax stamps (as
long as the applicant has no debts towards the State and shows every three months that excise
taxes have been paid on the products sold)?
Answer:
Albania confirms that "there is no limitation for obtaining tobacco or liquor tax stamps, as
long as the applicant has no debts towards the State".
Question 82.
We appreciate the hard work invo lved in compiling such a comprehensive agricultural schedule
in WT/ACC/ALB/9 at this stage of the negotiations.
Document WT/ACC/ALB/9 indicates that Albania will bind its export subsidies and domestic
support commitments at zero. We strongly recommend this and congratulate Albania on its
decision not to provide export subsidies for agricultural products.
Would Albania comment, however, on the statement in WT/ACC/ALB/8/Add.1 that Albania
would like to negotiate its level of export subsidies?
Export subsidies are the most trade distorting forms of agricultural support. Since Albania has
never implemented export subsidies, we do not believe Albania has the right to now establish
them. We strongly encourage Albania to maintain  its export subsidy-free regime and bind its
export subsidy commitment at zero.
Answer:
We understand that the export subsidies are the most distorting forms of support and we also
are aware of the importance of the commitment on this issue. But, actually Albania is not in the
position to bind its export subsidy commitment at zero.WT/ACC/ALB/23/Rev.1
Page 31
(e) Internal policies
Local foodstuff aid
Question 83.According to the Albanian delegation,no measur e from the budget for foodstuff aid was applied,
because foreign aid was used for this purpose. Could we have an explanation?  For what is
foreign aid meant?
Answer:
In fact basic foodstuff (wheat, flour, sugar, oil)  have been provided to law income people to
help them cope with shortages and disruptions in food supplies due to transition factors (lek 5 billion
for four years/1992-1995). This was, however, provided under external assistance programmes as
emergency aid or other types of assistance. In the recent years, the programme was targeted to remote
areas and is now complete.
Question 84.
In what statistical bases could Albania provide for the comparison of local subsidy in
agriculture during last three years?
Which is the method of the calculation used for the calculation of total AMS per product ?
Answer:
Through a Government Decision (Decision No. 273, dated 16 June 1993) a ceiling price for
sales of flour (75 per cent) which is used to produce one type of bread, called "the massive bread" was
established at 29.6 Lek/kg. On paper the price became effective on 1 July 1993. It was calculated
based on a reference international price for wheat and the cost of domestically producing flour and
bread, as well as a minimum profit margin. De facto, however, up until the second half of 1995 the
market price never reached the ceiling providing for the administered price not to be effective. Theactual price fluctuated around values 30-10 per cent lower than the fixed ceiling because of large
amounts of wheat available from Food Aids and becaus e of low (lower than foreseen) world prices for
wheat and flour which were then imported into the country.
During the years 1993-1995, several increases in the prices of secondary
materials,fuel,steam,etc and in local salaries, took place. Although this resulted in higher productioncosts for flour and bread, because of the low price for the raw material (wheat), the reflection of such
costs in prices of the finished product (flour, bread) was not substantial, still allowing for a market
price below the administering ceiling.
Since in the second half of 1995, the above picture has changed, mainly due to external
shocks (wheat price increased sharply in international markets), it became difficult for local flour andbread producers to sustain the ceiling price.
To mitigate such effects, the government implemented a number of measures including:WT/ACC/ALB/23/Rev.1
Page 32
(a) the reduction in the price of power and water provisions when used for the production of flour
and bread. This had a net effect of 164.7 Lek/Kv in reducing the unit costs of bread. The
annual revenues foregone to the government amount to lek 330 million
(1647 Lek/ton x 200,000 ton annual bread production);
(b) bread other than the "massive bread" was exempt from the turnover tax ("massive bread" was
never taxed). Such a measure makes up an annual cost of lek 180 million to the State budget(revenue foregone) given that the amount of "non-massive bread" produced annually is
estimated at 40,000 tons (40,000 x 30,000 Lek/ton x 15%);
(c) wheat and flour imports have been exempt from customs duties. Only for flour, such measure
costs the budget some US$1.3 million annually (US$170 x 100,000 tons annual imports);
(d) wheat and flour supplies from aid or government purchases have been sold at prices well
below the market rates. The price gap for wheat (import price and domestic price) sustained
by the government is US$40/ton (US$200-US$160). Within the first half of 1996, 40,000 tonsof wheat are to be purchased by the government and some additional 30,000 tons of wheat
and flour will reach the country in the form of food aid from the United States, France and the
Czech Republic. These were sold in the domestic market at US$160/ton.
Of course, it is possible to quantify the effect of such subsidisation in the cost of flour
production. This measures is considered as a temporary measure to ensure that all citizens haveadequate access to bread (food security reasons) which, even though it involves purchasing of
government stocks and sales at subsidised rates to influence the domestic price, is allowed for
developing countries. Based on that it has not been included in the calculations of the AMS.
The above mechanisms are, however, not sufficient to maintain the domestic price for flour
within limits which allow for the pre-set ceiling to be sustained. On the other hand, local producersare weak and subsistence oriented and, moreover, the required marketing arrangements which could
make possible the exporting of cereals do not exist. As a result local producers cannot benefit from
higher world prices.
The calculation of AMS has taken into consideration the set administered ceiling price for
flour as from the Government Decision (29.6 Lek/kg.) and an external reference price converted intoour local currency (US$ 340/kg. equal to 34.00 Lek/kg.) which is only relevant for the period from
July 1995 onwards. The AMS has been calculated on the amount of flour which was actually sold at
the administered rates (10,000,000 kg.). As expected the AMS is negative which indicates that this
policy is protecting consumers and indirectly taxing producers.
The statistical data used for the above answers is from the National Institute of Statistics and
the Statistics Department in the Ministry of Agriculture and Food.WT/ACC/ALB/23/Rev.1
Page 33
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME (WT/ACC/ALB/2,
WT/ACC/ALB/4, WT/ACC/ALB/8/Add.8 and WT/ACC/ALB/8/Add.9)
1. General
(a) Intellectual property policy
Question 85.
At the last Working Party meeting, this delegati on tabled a number of questions on Albania's
ability to implement the WTO TRIPS Agreement, based on the information provided in
WT/ACC/ALB/4. We have not found the responses to these questions in the documentation we
have received. We would appreciate the guidance  of the Albanian delegation on where these
responses can be found. We list the questions, for information purposes, and in case responses
to them were not included in Albania's current documentation.
Answer:
In document WT/ACC/ALB/4 all the answers to the questions imposed by member countries
during the first meeting with Working Party are provided.
Question 86.
In its answer to question No 4 (WT/ACC/ALB/8/Add.8) Albania explains that some provisions
of the TRIPS Agreement are not included in Albanian Law, but their preparation is under
consideration by the Albanian Government. Co uld the Albanian Government please explain
what provisions are concerned and what th e time-frame for possible amendments is.
Answer:
The Government of Albania is working on the comparison of the Industrial Property Law and
TRIPS Agreement of the WTO, in order to make the required amendments to the existing law.
2. Substantive Standards of Protection
(a) Copyright and related rights
Question 87.
It appears that compilations of data (databases ) are not specifically given as a subject matter of
copyright protection in section II. - Copyright - of document WT/ACC/ALB/2. Please explain
how this issue is treated in Albanian copyright law and/or interpreted.
Answer:
Computer programs are included in the Alba nian Copyright Law. Section 13 of this law
defines the right of the lawful owner of a copy  of a computer program, without the author's
authorization to make a copy or an adoption of such a program, in cases where this adoption is
indispensable for the utilization of the computer program for the purposes of which the program hasbeen lawfully obtained; and for archival purposes  and if necessary for the replacement of the copy
lawfully obtained.
Section 14 defines the conditions in which su ch authorization of the author will not be
required.WT/ACC/ALB/23/Rev.1
Page 34
Question 88.
If Albanian copyright law provides the same protection to computer programs and compilations
o f  d a t a ,  d o e s  i t  c o m p l y  w i t h  " w h e t h e r  i n  machine readable or other form" provided for by
Article 10.(2) of the TRIPS Agreement?
Answer:
Albanian Copyright Law provides the same protection to computer programs and data
compilations required by Article 10(2) of the TRIPS Agreement and it fully complies with "whether
in machine readable or other form". Computer programs under Albanian law are protected as literary
works under the Berne Convention.
Question 89.
Could the Albanian Government explain in detail  the exceptions and limitations of a copyright
as well as related rights?
Answer:
Chapter III of the Albanian Copyright Law defines the exceptions and limitations of a
copyright as well as related rights.
In section 6 of the law is given that free reproduction for private purposes shall be permitted,
without the author's authorization and without payment or remuneration, to reproduce a lawfully
published work exclusively for the users' own private use (including use for scientific and researchpurposes).
Paragraph (1) shall not be applied in respect of:
(a) the reproduction of works of architecture in the form of buildings or similar constructions;
(b) the reprographic reproduction of works of fine arts of restricted edition, of graphic
presentation of musical works (sheet music) and of exercise books or other one-usepublications;
(c) the reproduction of computer programs except for cases mentioned in section 13 of the
Albanian Law;
(e) any other reproduction that would conflict with  the normal exploitation of the work or would
unreasonably prejudice the legitimate interests of the author.
According to section 8 of the Albanian Copy right Law, the free use of teaching shall be
permitted without the author's authorization and wi thout payment of remuneration, but subject to the
obligation to indicate the source and the name of the author  if it appears therein:
(a) to use a lawfully published work by way of illustration in publications, broadcasts or sound or
visual recordings for teaching; and
(b) to reproduce, by geographic means, for teaching or examinations in educational institutions
whose activities do not serve for direct or indirect commercial gain, to the extent justified by
the purpose, single articles legally published in a newspaper or periodical, short extracts from
a legally published work or a legally published short work, provided that such utilization is
compatible with fair practice.WT/ACC/ALB/23/Rev.1
Page 35
Section 9 defines the rights and exceptions of the free reproduction by Libraries and Archives.
According to the above mentioned section, such re production shall be permitted, without the author's
authorization and without payment of remuneration, to reproduce single copies of a work by a library
or archive whose activities do not serve for direct or  indirect commercial gain, the copy of which is in
the permanent collection of the library or archive concerned, in order to:
(a) preserve and, if necessary (in the event that it is lost, destroyed or rendered unusable), replace
such a copy;
(b) replace, in the permanent collection of another library or archive, a copy which has been lost,
destroyed or rendered unusable;
(c) provided that it is impossible to purchase such a copy within a reasonable time and under
reasonable conditions.
Section 10 of the Albanian Copyright Law deals with the rights and exceptions of the free
reproduction for legal and administrative purposes. It defines that such reproduction is permittedwithout the author's authorization and without remuneration to reproduce a work for court or
administrative proceedings to the extent justified by the purpose.
Section 11 of this law also defines the rights and exceptions of the free use for information
purposes. According to this section such use will be permitted without the author's authorization and
without payment of remuneration, but subject to the obligation to indicate the source and the name ofthe author, if it appears therein, to:
(a) reproduce and distribute by the press or broadcast or communicate to the public by cable, an
article published in a newspaper or periodical on current economic, political or religious
topics or a broadcast work of the same character in cases where the right of reproduction,
broadcasting or such communication to the public is not expressly reserved;
(b) reproduce and make available to the public, for the purpose of reporting current events, by
means of photography, cinematography, broadcasting or communication to the public by
cable, a work seen or heard in the course of such event, to the extent justified by the
informatory purpose;
(c) reproduce in the press, broadcast or communicate to the public, political speeches as well as
lectures, addresses, sermons and other works of similar nature delivered during legal
proceedings, for purpose of current information, to the extent justified by the purpose, the
authors retaining their rights to publish collections of such works.
Section 12 of the law defines the limitations of the free use of pictures of works permanently
located in public places. According to this section it shall be permitted, without the author'sauthorization and without payment of remuneration, to reproduce broadcast or communicate to the
public by cable a picture of a work of architecture, a work of fine art, a photographic work or a work
of applied art that is permanently in a public place (square, street, park, etc) except if the picture of the
work is the main subject of such reproduction, broadcasting or communication and if it is used for
commercial purposes.
A copy of the law No.7564, dated 19 May 1992 "On Copyright" and its amendments have
been provided to the Secretariat during the second meeting of Working Party in October 1996(WT/ACC/ALB/20).WT/ACC/ALB/23/Rev.1
Page 36
Question 90.
Does Albanian law protect performers and producers of phonograms "retroactively" (see
Article 14.6 of TRIPS Agreement in conjunction with Article 18 Berne Convention)?
Answer:
Yes. Albanian Law protects performers a nd producers of phonograms "retroactively" as
required by the Article 14.6 of TRIPS Agreement in conjunction with Article 18 Berne Convention.
Question 91.
Could the Government of Albania explain in more detail (than in the answer to question No. 22
in document WT/ACC/ALB/8/Add.9) how computer programs are protected, in particular
under what circumstances is it possible that a th ird person can be "the lawful owner of a copy
of a computer program"?
Answer:
Sections 13 and 14 of the law define the limitations and exceptions for the free reproduction
and adaptation as well as free decompilation of computer programs. According to section 13 the free
reproduction and adaptation of computer programs shall be permitted for the lawful owner of a copy
of a computer program, without the author's authorization and without the payment of separate
remuneration, to make a copy or an adaptation of such program, provided that such a copy or such an
adaptation is:
(a) indispensable for the utilization of the com puter program for the purposes for which the
program has been lawfully obtained; and
(b) for archival purposes and, if necessary (in the event that those copies are lost, destroyed or
rendered unusable), for the replacement of the copy lawfully obtained.
The copy or adaptation mentioned above in paragraph (1) shall be destroyed in the event that
continued possession of copied of the computer program ceases to be lawful.
Regarding the free compilation of computer programs the author's authorization shall not be
required where reproduction of the code and adaptation (translation) of its form are indispensable to
obtain the information necessary to achieve the interoperability of an independently created computer
program with other programs, provided that the following conditions are met:
(a) these acts are performed by the licensee or by another person having a right to use a copy of a
program, or on their behalf by a person authorized to do so;
(b) the information necessary to achieve interopera bility has not previously been available to the
persons referred to in sub-paragraph (a); and
(c) these acts are confined to the parts of the original program which are necessary to achieve
interoperatibility.
The provisions of paragraph (1) shall not permit the information obtained through its
application:WT/ACC/ALB/23/Rev.1
Page 37
(a) for goals other than to achieve the interoperatibility of the independently created computer
program;
(b) to be given to others, except when necessary for the interoperability of the independently
created computer program; or
(c) to be used for the development, production or marketing of a computer program substantially
similar in its expression, or for any other act which infringes copyright.
The provisions of this section may not be interpreted in such a way as to allow its application
to be used in a manner which conflicts with a normal exploitation of the computer program or that
unreasonably prejudices the legitimate interests of its author.
Section 15 of the Albanian Law defines the free ephemeral recording by a broadcasting
organization, without the author's authorization and without payment of separate remuneration, to
make an ephemeral recording by its own facilities an d for use in its own broadcasts of a work which it
has the right to broadcast. The broadcasting organization shall be obliged to destroy such a recordingwithin six months from its making, unless a longer term has been agreed on with the author of the
work recorded. Such a recording, however, may be preserved in official archives, also without such an
agreement, on the grounds of its exceptional documentary and historic character.
Meanwhile section 16 of the same law defines the limitations on the free public performance.
According to the above mentioned section it shall be  permitted, without the author's authorization and
without payment of remuneration, to perform a work  publicly in the course of the activities of an
educational institution, by the staff and students of such an institution, if the audience is composed
exclusively of the staff and students of the institution or parents and guardians of the students or other
persons directly connected with the activities of the institution.
(b) Trademarks, including service marks
Question 92.
In response to question 116 (WT/ACC/ALB/4) Albania uses the term "well-known" mark.
Please define this term in the context of the Government of Albania's Trademark Law. Please
include under what procedure a mark is considered well-known.
The answer to the previously noted question 116 indicates that well-known marks will not be
registered but the explanation in question 118 does not seem to authorize such a refusal. Also no
mention is made or refusal to register a mark that is merely the name of the thing with which
the mark is associated. Please clarify how th e Government of Albania treats these types of
trademarks.
Answer:
A sign shall not be protected as a mark, if its use as a mark would be in conflict with earlier
rights.
The following, in particular shall be considered as an earlier right:
- an identical or similar mark of a third party, in respect of identical or similar goods or
services;  in respect of goods or services which are neither identical nor similar which have an
earlier filing date or priority date, and which have been registered or subsequently will be
registered;WT/ACC/ALB/23/Rev.1
Page 38
- a well-known mark within the meaning of Article 6 bis of the Paris Convention for the
Protection of Industrial Property, of a third party.
For the definition of a well-known mark, the information of the consumers about the mark will be
taken into consideration.
Question 93.
Five years is too long before allowing a mark to be cancelled for non-use.What are Albania's plans to amend the law to shorten the time allowed before a mark can be
cancelled for non-use?
TRIPS Article 15(3) provides that a trademark application shall not be refused solely on the
ground that intended use has not taken place before the expiry of a period of three years from
the date of application. This Member's domestic law was changed in the Uruguay Round
Agreements Act from two years to three years of non-use before cancellation of a mark to
comply with TRIPS.
Answer:
The amendment is as follows: When use is re quired to maintain a registration, then the
registration may be cancelled only after there is an uninterrupted period of non-use for at least three
years, unless there exists is a valid reason to explain the inactivity, such as the existence of some
obstacle in production or marketing encountered by the owner of a registered item.  The legal use of atrademark by a third party shall be recognized as use of the trademark for the purpose of maintaining
the registration.  The amendment is ready to be put forward to the Albanian Parliament and the
process of approval will take three to six months.   The amendment is in conformity with the TRIPS.
A copy of the amendment is not yet available in English.  It will be provided to the Secretariat later in
the month of April 1998.
Question 94.
This delegation would like to know if the Alba nian legislation allows the Member Governments
of the WTO to renew the registration of their trade and production marks in conformity with
international obligations within the frame of WIPO and in the spirit of the TRIPS Agreement.
If yes, under what conditions?
At the beginning of this year, one marks agent  informed our authorities that the Office of
Marks of the Chamber of Commerce of Albania in Tirana, the only competent authority for
receiving the mandates for foreign companies, did not accept the mandates of renewing some
foreign registered marks.  In the concrete case it was for the following marks: Omega
Constellation No. 406, Longines No. 8/700/3, Rolex with crown No. 17/1603/4, RolexNo. 15/1384/4, Certina symbol No. 18/2027.  Our Emba ssy in Tirana, has received word that the
Mark Office will do all necessary.  Anyhow this intervention until now could not resolve the
problem.  The Albanian Mark Office has no t given further instruction to the Albanian
correspondent of our marks agent.
We would like to have a quick answer on this question.WT/ACC/ALB/23/Rev.1
Page 39
Answer:
According to the Albanian legislation this matter is the responsibility of the Chamber of
Industry and Commerce. The Chamber of Industry and Commerce is working on this issue, in order to
take necessary measures to satisfy the request of the above-mentioned Swiss companies as well as for
other foreign companies.
Question 95.
Is the context of the protection of well-known marks, could the Government of Albania be more
specific about when "the use of a trademark conflicts with the rights of a well-known mark"?
Answer:
A sign shall not be protected as a mark, if its use as a mark would be in conflict with earlier
rights.
The following, in particular shall be considered as an earlier right:
- an identical or similar mark of a third party, in respect of identical or similar goods or
services;  in respect of goods or services which are neither identical nor similar which have an
earlier filing date or priority date, and which have been registered or subsequently will be
registered;
- a well-known mark within the meaning of Article 6 bis of the Paris Convention for the
Protection of Industrial Property, of a third party.
For the definition of a well-known mark, the information of the consumers about the mark will be
taken into consideration.
Question 96.
In the answer to question No. 15 (WT/ACC/ALB/8/ Add.8) the Government of Albania describes
the duties of the Patent Office. Does the tradem ark registrar have the same responsibilities or
does he have more than those described?  Please explain.
Answer:
The trademark registrar has the same responsibilities as described in the duties of the Patent
Office.
(d) Industrial designs
Question 97.
How are textile designs protected?
Answer:
The Albanian Law "On Industrial Property Rights" provides for the protection of textile
designs. Part II of the respective law, Article 59 gives the definition and conditions of protection forindustrial designs, explaining that textile designs are included in this protection. Articles 60-69
provide the right of protection, the procedures for registration, the temporary protection of industrial
designs exhibited at international exhibitions, etc.WT/ACC/ALB/23/Rev.1
Page 40
(e) Patents
Question 98.
Concerning the response to question 109, does importation satisfy the working requirement for
patents?
Answer:
Albanian law does not provide details for the cases in which the patent invention has not been
worked or has been insufficiently worked in the Republic of Albania, but it is mentioned that the
Patent Office does not grant the non-voluntary licence, or if certain circumstances exist such as the
importation of the product incorporating the patented invention whether it satisfies the local working.
Question 99.
If not, failure to allow imports to satisfy the working requirement would be inconsistent with
the prohibition against discrimination in the enjoyment of patent rights based on whether
something is imported or domestically produced.
Are parties required to seek voluntary licences fr om the patentee before they may apply for a
compulsory licence?
Answer:
Albanian legislation on TRIPS does not include  the provisions dealing with that problem.
Question 100.
In the last sentence of the response to question 128, the Government of Albania notes that if the
owner of the patent proves imminent infringement, the court shall grant an injunction to
prevent infringement and any other remedy provided in the general law. Is the preliminary
relief mentioned here available to owners of other forms of intellectual property, i.e., those other
than patent owners?
Answer:
Yes, it is.
Question 101.
Could Albania explain under what conditions co mpulsory licences/government use is granted?
Answer:
On the request of any person who proves his ability to work the patented invention in the
Republic of Albania, made after the expiration of a period of four years from the filing date of the
application for the patent or three years from the grant of the patent, whichever is later, the Patent
Office may grant a non-exclusive, non-voluntary licence  if the patented invention is not worked or is
insufficiently worked in the Republic of Albania. The grant of a non-voluntary licence shall be subjectto the payment of equitable remuneration to the owner of the patent.WT/ACC/ALB/23/Rev.1
Page 41
A non-voluntary licence shall not be granted if the Patent Office is convinced that
circumstances exist to justify the non-working or insu fficient working of the patented invention in the
Republic of Albania.
In deciding whether to grant a non-voluntary licence, the Patent Office shall give both the
owner of the patent and the person requesting the non-voluntary licence an adequate opportunity to
present arguments.
Any non-voluntary licence shall be revoked when the circumstances which led to its granting
cease to exist, taking into account the legitimate interests of the patent owner and of the licensee. The
continued existence of these circumstances shall be reviewed upon request of the patent owner.
Question 102.
Could the Government of Albania explain under what circumstances the non or insufficient
working of a patent is justified?
Answer:
Albanian law does not provide details of cases in which the patent invention has not been
working or insufficiently worked in the Republic of Albania, but it is mentioned that the Patent Office
does not grant the non-voluntary licence if certain circumstances exist which justify the non working
or the insufficient working of the patent invention in Albania. It will depend on the circumstances of
the importation of the product incorporating the patented invention whether it satisfies the localworking.
Question 103.
Could the Government of Albania be more specific in its answer to question No. 8
(WT/ACC/ALB/8/Add.8) with regard to exceptions from patentability?
Answer:
In order to be patentable, an invention shall be  novel, shall involve an inventive step and shall
be industrially applicable.
The following, in particular, shall not be re garded as inventions within the meaning of
paragraph (1):
(a) discoveries, scientific theories and mathematical methods;
(b) aesthetic creations;
(c) schemes, rules and methods for performing mental acts, playing games or doing business, and
programs for computers;
(d) presentations of information.
The provisions of the above-mentioned paragraph shall exclude patentability of the subject
matter or activities referred to in that provision only to the extent to which a patent application or
patent relates to such subject matter or activities as such.
A patent shall not be granted in respect of an invention  of which the publication or
exploitation  would be contrary to public order or morality.WT/ACC/ALB/23/Rev.1
Page 42
No patents shall be granted for substances obtained through internal nuclear transformations
for military purposes.
No patents shall be granted for inventions of surgical, diagnostic or therapeutical methods
practised on the human or animal body, as they shall be regarded as inventions which are not
suspectable to,industrial application. This provision shall not apply to inventions relating to
substances and devices for use in any of these methods.
No patents shall be granted in respect of plant or animal varieties or essentially biological
processes for the production of plants or animals;  this provision does not apply to microbiological
processes or the products thereof.
(g) Layout designs of integrated circuits
Question 104.
The response to question 113 (WT/ACC/ALB/14) indicates that the Government of Albania will
prepare an act on the protection of layout designs of integrated circuits.
When will the drafting of legislation be undert aken and when is enactment of legislation
expected?
Please submit a copy of the draft legislation to the Secretariat for review by the Working Party.
Answer:
The Albanian Government has under considerat ion the preparation of a law on layout-designs
of integrated circuits. There is still no outline, but the preparation will be based on Articles 35-38 of
the TRIPS Agreement. The Patent Office will be the responsible body for these matters.
Question 105.
It appears that Albania has not yet adopted la ws to protect layout-designs (topographies) of
integrated circuits as well as undisclosed informat ion (trade secrets). If this is the case, please
explain how these issues are being treated now and indicate the timetable for the adoption of
such laws.
Answer:
Albania has under consideration the preparati on of a law on protection of layout designs
(topographies) of integrated circuits. There is not yet any timetable for the adoption of such laws.Regarding trade secrets, Article 49 of Law No. 8044, dated 7 December 1995, provides protection for
business secrets. According to this article the providing of business or operative secrets on the activity
of the competitors in illegal way or encouraging their employees in order to use or to sell them is
prohibited. It is also forbidden, to give to others or to use business or operative secrets, knowledge
which are provided during the relations of employment or other confidential relations, during the termof these relations in order to gain some advantages  in the competition for oneself or for another third
party or to damage the owner of any commercial co mpany. This obligation is valid for a period of two
years after the termination of the employment or the confidential relation if the owner of this business
activity has a justified interest for the same thing and if it does not lead to any unreasonable restriction
of the business or the professional activity of others.  Competitions provides for protection of trade
secrets.WT/ACC/ALB/23/Rev.1
Page 43
(h) Requirements on undisclosed information, including trade secrets and test data
Question 106.
According to the response to question 126, Alba nia does not currently provide trade secret
protection.
When will Albania prepare its law to provide trade secret protection? How will this law be
developed? How will the Government of Albania enforce this protection?
Question 107.
The Government of Albania explains that trade secrets are protected by the Law on
Competition. Could the Government be more specific and explain?
Answer:
A copy of the law and modifications to the law will be provided to the Secretariat (see
Annex).
4. Enforcement
Question 108.
Please provide a more complete description of Albania's enforcement system regarding
intellectual property rights, including any bord er enforcement that is available. In addition,
please provide copies of the laws in question to the Secretariat for review by Working Party
members.
Answer:
There are no one system of enforcement at borders in Albania, but the preparation of this
system is under consideration.
Question 109.
Could the Government of Albania explain, in more detail than in its submitted documentation,
its judicial system to enforce intellectual property rights?
Answer:
There are some general provisions in Albanian legislation dealing with the enforcement of
intellectual property rights. The preparation of the specific provisions to provide enforcement for the
intellectual property rights system required by the TRIPS Agreement and other internationalorganizations is under consideration. The two government institutions responsible for drafting such
legislation, respectively the Ministry of Culture, Youth and Women for copyright and the Albanian
Patent Office for the patents, marks, industrial designs, etc., are working on this issue.WT/ACC/ALB/23/Rev.1
Page 44
VI. TRADE-RELATED SERVICES REGIME
Professional services
Question 110.
It is often useful for service providers establishing in a foreign country to bring, at least initially,
their own experts on internationa l law, on the law in their own countries, or in the accounting
practices of the company. Is this permitted under Albanian law? Is it permitted forinternational law and accountancy firms to establish in Albania, and if so, what services are
they permitted to provide?
Answer:
There is not yet legal framework to establish the relationship of foreigners in Albania.
The Council of Ministers has approved an Order No. 1 of 2 March 1995 "For organizing the
Profession of Certified Public Accountant".
The order provides rules on procedures and conditions of registration. To be registered, a
candidate must;
- be an Albanian national for more than 5 years;
- enjoy civil rights;
- have not received a penal condemnation;
- be at least 25 years old;- have a degree in economic science;
- have no less than three years professional experience;
- have participated in and passed a test of professional skills;
- provide proof of honesty.
According to the order the registration of a foreign physical person is possible under the
following conditions:
The candidate must:
- fulfil all the conditions described in the previous paragraph;
- be resident in Albania for more than 5 years;
- speak the Albanian language (a language test must be taken);- have the agreement of their home State to take Albanian nationality, which is
required to exercise the profession of Certified Public Accountant in Albania.
The evaluation of professional skills must include an exam of Albanian language, and an
exam on the Albanian legal system.
This order provides rules and criteria for compiling the list of certified accountants by the
Institute, rules and conditions that must be fulfilled for the examination of professional abilities and
ethics, and sanctions in cases of violation of rules.The order also define the working programme and
compensation of certified public accountant.
There is no legal framework to allow or prohibit foreign private companies to offer such
services as intra-industry services.WT/ACC/ALB/23/Rev.1
Page 45
Financial Services
Banking
Actually Albania has been working on a new Banking System Law.  As of yet, there are no
differences between the existing Law on the Banking System in Albania and the draft of the new one
on this issue.  As soon as the new Law on the Banking System will be approved by the Parliament,
you have our comments on these issues.
Question 111.
In response to question 56 of WT/ACC/ALB/3 on the two respects in which foreign banks do not
receive national treatment, minimum capital requirements and the prohibition on foreign banks
accepting deposits from natural or juridical Al banian persons, Albania stated that there was a
proposed foreign bank branches engaging in acceptance of deposits from natural and juridical
Albanian persons.
What is the status of that amendment?We appreciate the information and draft schedule of commitments provided by Albania. We
seek further information and hope that it will assist Albania in considering possible
improvements in its schedule.
Answer:
Under the new Law of 1996 "On the Banking System" and the regulation for granting of a
licence to operate as a bank in the Republic of Albania, there is no discrimination for the foreign
banks on the minimum capital requirements. According to these regulations foreign banks receive
exactly the same treatment as national banks on the minimum capital requirements.
In line with Article 26 of the above law it is not prohibited for the foreign bank's branches to
accept deposits from natural and juridical Albanian persons. There is no amendment on this article(Article 26).
Question 112.
Are there any financial services as defined in paragraph 5(A)(V) through (XVI) of the annex on
financial services which are not listed in your schedule, but currently provided by the private
sector in Albania? Are any such services provided by State-owned institutions alone or incompetition with privately-owned financial institutions in Albania?
Answer:
Recently Albania has been working on the new schedule of financial services which is almost
complete and will be presented in the coming negotiations. This draft includes all financial services as
defined in paragraph 5(A)(V) through (XVI) of the annex on financial services with the exception ofservices listed under items (X), (F) and (XIV) of the said annex. The activities listed in the new draft
schedule on banking and financial services can be provided freely by both private- and State-owned
financial institutions.WT/ACC/ALB/23/Rev.1
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Question 113.
Are there any monopoly suppliers of financial services?
What are the banking activities that can be provided by banks in Albania? Can banks in
Albania involve themselves in securities or  other non-traditional banking activities?
Answer:
There are no monopoly suppliers of financial services.
In  line with Article 26 of the Banking System Law, banks in Albania can provide all
financial services as defined in paragraph (A) (V ) through (XVI) of the Annex on financial services
with the exception of services listed under  items (X), (F) and (XIV) of said Annex.
Question 114.
Are there any measures that limit in any way th e ability of a non-resident financial service
provider to provide cross-border into the territory  of Albania: (a) advisory and other auxiliary
financial services; and (b) the provision and transfer of financial information and financial dataprocessing (as defined in paragraph 5(A)(XV) a nd (XVI) of the annex on financial services)? If
so, please describe the measures that apply.
With reference to financial services as defined in paragraph 5(A)(V) through (XVI) of the annex
on financial services, are there any financial services that would limit in any way the ability of
residents to purchase financial services in the territory of another party, including licences
required for foreign currency transactions?
According the Banking System Law there are no restrictions that would limit in any way the
ability of non-resident financial service provider to submit cross-border in the territory of Albania
including: (a) advisory of other auxiliary financial services; and (b) the provision and transfer of
financial information and financial data processing  (as defined in paragraph 5 (A) (V) and (XVI) ofthe annex on financial services).
According the new draft Law on the Banking System (Article 60) there are no financial
services that would limit in any way the ability of residents to purchase financial services in the
territory of another party.  But for a short period of time the ability of residents to purchase financial
services in the territory of another party will be limited by Article 5 of the existing Foreign ExchangeMarket Regulation.  According to this Article residents and nonresidents shall obtain the prior written
approval by the Bank of Albania for capital transfers,  with the exception of following capital transfers
which may be made by freely:
(i) inward capital transfers by residents and nonresidents;
(ii) outward capital transfers representing previously recorded capital inflows;(iii) transfers of proceeds of the withdrawal of nonresidents deposits;
(iv) transfers undertaken in accordance with Law for Foreign Investments (Law No. 7764
dated 2 November 1993); andWT/ACC/ALB/23/Rev.1
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(v) transfers of proceeds of liquidation of Albanian assets by an emigrant on departure
from  Albania.
Also Albania has been working on a new Foreign Exchange Market Regulation.  As soon as
the new regulation will be approved by the supervisory council of the Bank of Albania, you will have
our comments on these issues.
Question 115.
Are there any measures that would apply to financial services as defined in paragraph 5(A)(V)
through (XVI) of the annex on financial services, that would  limit the ability of a non-resident
financial service provider to establish a commercial presence in Albania as a directly owned
branch, an agency, a representative office, a wh olly owned subsidiary, either through de novo
investment or through acquisition of existing en terprises to engage in any of the services that
are not listed in Albania's schedule?
Answer:
There are no restrictions that would limit the ability of non-resident financial services
provider to establish a commercial presence in Albania as a directly owned branch, agency,
representative office or wholly owned subsidiary, either through de novo investment or through the
acquisition of existing enterprises, to engage in any of the services that are listed in the
paragraph 5(A)(V) through (XVI) of the annex on financial services except for the services listedunder items (X), (F) and (XIV) of the annex.
Question 116.
Would you confirm that foreign-owned financial service providers that are established in
Albania will be able to expand operations thro ugh additional locations or branch operations on
the same terms and conditions as domestic financial institutions in like circumstances?
Answer:
We can confirm that foreign-owned financial services provider that are established in Albania
will be able to expand operations through additional locations or branch operations on the same terms
and conditions as domestic financial institutions in like circumstances. In line with Article 5 of the
Law on Banking System of the Republic of Albani a, banks licensed by the Bank of Albania can
extend and decrease their network (subsidiary, br anches, agency or other banking offices) in the
Republic of Albania, without the preliminary authorization of the Bank of Albania.
Question 117.
Albania's schedule contains limitations for different capital requirements for foreign-owned
banks and domestic-owned banks. Would Albania explain the reasons for differentrequirements?
Are there any measures that would prevent a foreign-owned financial service provider from
becoming a member of any self-regulatory bod y, securities or futures exchange or market,
clearing agency or other organization or association, now or in the future, on the same terms
and conditions as a domestic institutions in like circumstances?WT/ACC/ALB/23/Rev.1
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Answer:
For the moment there are no restrictions that would prevent a foreign-owned financial
services provider to become a member of a self regulatory body on the same terms and conditions as a
domestic institution in like circumstances.
Question 118.
Please describe the status of development of private and government securities market in
Albania. Are there any restrictions that would limit participation in the government or private
securities markets by foreign-owned financial institutions in Albania?
Are there any limitations, incl uding on foreign currency, that apply to a foreign resident's
participation in private or government securities markets?
Are there any provisions under consideration for laws, which would regulate those financial
services, that are not currently listed in Albania's schedule and would be inconsistent with
market access and national treatment provisions of the GATS?
Answer:
Actually, the security market in Albania is trading only government securities in different
length of maturity. For the moment the private securities market is not developed. There are no
restrictions that would limit the participation in th e government securities markets, both primary and
secondary, of foreign-owned financial institutions in Albania.
Government securities can be traded only in Albanian Lek (domestic currency) and not in
foreign currencies in both the primary and secondary markets.
Question 119.
We understand that there are no restrictions on the temporary entry of managers, executives or
specialists of a financial services provider that is establishing or has established a commercialpresence in Albania. Please confirm this understanding and describe the length of stay for such
temporary entry.
Answer:
We can confirm that there are no restrictions at all on the temporary entry and terms of stay of
foreign managers, executives or specialists of a financial services provider that is establishing or hasestablished a commercial presence in Albania.
Investment
Question 120.
In response to question 44 in WT/ACC/ALB/3, on whether or not there are any ceilings for
foreign investment in any sectors, Albania stat es in its answer that there are no ceilings on
foreign investment. Later, however, in service specific documents, Albania states that
investment in the telecom sector is limited to 40 per cent while the limit in the insurance sector
is still being debated.
Please confirm what, if any, limits there are on investment in these two sectors.WT/ACC/ALB/23/Rev.1
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Answer:
Insurance Sector
According to the Albanian Law "On Insurance and Reinsurance Activities" foreign
companies may open branches or sub-branches with 100 per cent their own capital within the territory
of Albania. But according to the above-mentioned law the foreign companies are limited to
40 per cent participation in the insurance shareholdi ng companies. Taking into consideration that the
Albanian insurance market is quite a new one, for prudential reasons it is necessary to limit the
foreign participation in such services only for shareholding companies.
Telecom Sector
It is foreseen that the Albanian telecommunications agency will continue to be the monopoly
provider of basic telecom services for about eight years, in which time Albanian Telecom will be
gradually privatized with the participation of a strategic partner. But there is still no one precise
percentage of the strategic partner's shares.
Telecommunications
Question 121.
Please clarify the meaning of "a strategic partner" in section II. - Telecommunications - of
document WT/ACC/ALB/14.
Answer:
The definition of "strategic partners" provided for in the telecommunications legislation is
based on the technical and financial abilities of the potential investors in the respective field.
Transport
Question 122.
In the section on Maritime Transport (document WT/ACC/ALB/14) it is stated that "the legal
framework for maritime transport services is still being developed". Does it mean that Albania
is going to adopt laws and regulations in this fiel d for the future? If so, please give an outline of
laws and regulations which are likely to be adopted.
Answer:
The draft of the Maritime Code was completed and was accepted by the International
Maritime Organization.  It is in the process of a pproval by Parliament.  A copy of the Maritime Code
is not available in English.  It is expected that a copy of this Code will be sent to the Secretariat as
soon as it is passed by the Parliament.
Tourism
Question 123.If a permit to develop an area is rejected by the Tourism Development Committee, is there a
mechanism for appeal? Does the Committee make public its reasons for rejecting proposals?WT/ACC/ALB/23/Rev.1
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Answer:
Article 4 of Law No. 7665 of 21 January 1 993, "On Tourism Promoted Development Zones"
(WT/ACC/ALB/6) defines the procedures of approval or rejection of a licence. The first decision of
the Tourism Development Committee is provided offici ally to the interested parties. The interested
parties under the law are provided with a period of 90 days to make present their comments and their
proposals on the decision. After reviewing within 60 days all the comments on the first rejection, theTourism Development Committee officially makes known its final decision.
If the Minister of the Ministry of Tourism finds the decision of the Tourism Development
Committee not based on the law, he/she has the right to reject it.WT/ACC/ALB/23/Rev.1
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ANNEX
List of New Laws  and Amendments to Existing Laws
Title and status Date If copy not
provided
expected
submission
Law on Customs Tariffs October 1992 Provided
(Law No. 7609) and amendments Law on Priority Tourism
Development Zones (Law No. 7665) and amendmentsJanuary 1993 Provided
Law for Telecommunications and amendments (Law No.
8038)November 1995 Provided
Law on Competition December 1995 -Provided
Law No. 8044 Law on Insurance and Re-insurance
Companies (Law  No. 8081)March 1996 Provided
Law on Customs Valuation (Law No. 8187) 1997 -Provided
Customs Code – draft March 1998 Provided
Law on Excise Taxes (Law No. 7678) and amendments - Provided
Law "On the Bank of Albania" (Law No. 8269) December 1997 Provided
Strategy on Privatization March 1998 Provided
Law on Privatization March 1998 Provided
Maritime Code – draft - May 1998
Law on Standardization – draft - June 1998
Decree on the Code of Good Practice for Preparation,
Adoption and Application of Standards- July 1998
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