Guinea WT/TPR/S/54
Page 25
III. TRADE POLICY - ANALYSIS BY MEASURE
(1) INTRODUCTION
1. Trade reforms have been carried out in Guinea under the structural adjustment programmes in
progress since 1985.  These reforms have enabled most quantitative trade restrictions to be abolished.
However, besides the restrictions maintained for health, security or moral reasons or under
international conventions to which Guinea is a signatory, imports of potatoes are prohibited fromFebruary to June each year in order to allow local production to be sold.
2. Import duties (fiscal import duty, customs import duty and clearance fee), which are heavily
concentrated around their simple arithmetic mean of 16.4 per cent (with a minimum rate of 2 per cent,
a maximum of 32 per cent and a modal rate of 17 per cent (Table AIII.1), show negative tariffescalation from unprocessed products to finished goods.  Subject to exemptions, unprocessed products
are therefore the most protected, followed by semi-finished goods (Table III.1):  this should be
reflected in nominal higher than the effective protection rates.  A 0.5 per cent community levy is
collected on behalf of ECOWAS on goods originatin g in countries other than those of ECOWAS and
an additional 0.25 per cent tax is levied for payment to the Chamber of Commerce.  The basis for allthese duties is the c.i.f. value.  However, flat-rate values are set for certain products such as rice and
beverages.  Domestic taxes, including a value-added tax of 18 per cent and a surtax (eight levels from
5 to 70 per cent on imports), are applied to locally produced goods and to imports;  the surtax is levied
at lower rates on local products.
Table III.1
Customs tariff (excluding Community Levy and Additional Tax) by stage of processing, 1998
Products Number of lines Average Minimum rate Maximum rate Standard
deviationCoefficient of
variation
Unprocessed products 673 16.8 2 24 1.6 0.09
Semi-processed products 1,723 16.6 10 32 2.0 0.12
Finished products 2,945 16.1 2 32 3.1 0.19
Total 5,341 16.4 2 32 2.6 0.16
Source:  Calculations by WTO Secretariat.
3. Pre-shipment inspection covering imports of goods worth at least US$5,000 was introduced
for tax purposes and increases the level of protection of similar goods or their locally produced
substitutes.  This is because the fees of the insp ection company, the Société générale de surveillance
(SGS), are borne directly by the importers, which can add up to nearly six additional points to the
protection level (in the absence of inspection).
4. For exports, restrictions have been abolished on all products apart from gold and diamonds.
Export duties of 2 per cent are levied on all products, with the exception of coffee and mineral
products and derivatives, including gold, diamonds and ferrous scrap.  These duties are:  GF 25,000
per ton of scrap; 2 or 3 per cent on gold and 3 per cent on diamonds (small-scale production); and
US$13 per ton of coffee.  A 2 per cent tax is levied on the re-exportation of all products.  However,
fiscal and customs advantages are granted to the exporting enterprises.  In addition to the privilegescommon to the various regimes under the Investment Code, further additional advantages are granted
to enterprises (whether exporters or not) which make use of Guinean products representing over
50 per cent of their intermediate consumption during a fiscal year.
5. Price controls have been progressively streamlined; they now apply only to petroleum
products.  Furthermore, the African Intellectual Pr operty Organization Treaty, of which Guinea is a
member, is being amended to align it on the provisions of the Agreement on Trade-Related Aspects ofWT/TPR/S/54 Trade Policy Review
Page 26
Intellectual Property Rights (TRIPS).  The counterfeiting of trade marks is the most common
infringement in Guinea in this area.
(2) MEASURES DIRECTLY AFFECTING IMPORTS
(i) Registration and documents
6. A Guinean or foreign operator wishing to import goods for commercial purposes must first be
included in the register of economic activities.1  A foreigner included in the register may therefore
pursue an economic activity in Guinea.  The formalities necessary for such inclusion are carried out at
the Office for the Promotion of Private Investment (OPIP), which comes under the Ministry for the
Promotion of the Private Sector, Industry and Trade.  In order to get a file opened, the party concerned
must state whether he wishes to be a retailer or a wholesaler.  The documentation required and thecost differ according to whether the would-be importer is a natural person or a company.  A written
application is required in the case of a natural person;  the application must be accompanied by a
certificate of ownership or a copy of the lease contract for the premises of establishment, a photocopy
of the identity card and a residence certificate for nationals or a photocopy of the passport and
residence permit (failing this, a three-month visa may be sufficient) for foreigners.  The registrationcost is GF 50,000.  In the case of a company, the application must be accompanied by the articles of
association, initialled by the National Tax Directorate
2 and a report attesting their juridical form and
legal duration.  The cost of registration is GF 100,000.
7. After inclusion in the register of economic activities, the importer's/exporter's card may be
collected at the single window of the National Trad e Directorate, which brings together at a single
location the Trade Directorate, the Labour Directorate, the Tax Directorate and the Social SecurityFund.  The cost of obtaining the card varies:  for a natural person, it is GF 50,000 (retailer) and
GF 100,000 (wholesaler).  The cost of the card for a company is GF 100,000.
8. Inclusion in the register of economic activities allows a trading account needed to carry out
import operations to be opened. For operations whose f.o.b. value is at least US$2,000, an import file(including the proforma invoice and order form) must be filed with the SGS, which is responsible for
the compulsory inspection of goods prior to shipment (Section (ii) below).  The importer's
identification number must be communicated for each operation.  After the documents have been
checked and validated, the SGS issues a Descriptiv e Import Application (DDI) to the importer, who
domiciles it with a commercial bank. The period of validity of the DDI is three months and can beextended.  A copy of this document is returned to the National Trade Directorate for statistical
purposes.
(ii) Inspection, customs valuation and payment of duties and taxes
9. For some years Guinea has been applying an import verification programme which was
initially entrusted to the BIVAC Company.  In June 1996 a Programme for the Security of Customs
Revenue (PSRD) was adopted by the Governmen t;  the SGS is responsible for implementing it.
Imports worth between US$2,000 and less than 5, 000 (f.o.b.) must be covered by a DDI but are not
liable to SGS inspection.  Apart from th e exceptions laid down in the contract
3 all import operations
                                                     
1 Code of Economic Activities, Book III, Chapter 1, October 1995.
2 Costs amount to 2 per cent of the capital.
3 These include precious stones and metals, works of art, explosives and ammunition, live animals,
newspapers, personal effects and used domestic articles including vehicles, films, postal packages and samplesand grants from foreign governments and international organizations.  Imports for the needs of diplomatic andconsular missions and of United Nations agencies are not liable to inspection.Guinea WT/TPR/S/54
Page 27
whose f.o.b. value is US$5,000 or more must be inspect ed by a branch of the SGS before shipment to
Guinea.  The SGS is responsible for determining the customs value and tariff heading, for calculating
and following up the collection of duties and taxes and for monitoring exemptions.  The cost of its
services is 1.05 per cent of the f.o.b. value of the goods, with a minimum amount equivalent in
Guinean francs to Sw F 430;4  this fee is chargeable to the importer and paid on the basis of the
proforma invoice when the DDI is filed at the SGS liaison office.  Since fees are borne directly by theimporters, preshipment inspection increases the level of protection of the goods concerned (Box III.1).
Box III.1 Preshipment inspection
Two aspects of the practice of pre-shipment inspection employed in Guinea should be stressed.  These are
the performance by the Société générale de surveillance (SGS) of all operations connected with customsformalities and the payment of import duties on imports liable to inspection, and the obligation imposed on
the importers to bear the inspection costs (the SGS fees) directly.  While, apart from the constraints on theimporter represented by the preshipment inspection obligation, the activities of the SGS may, to a certainextent, not constitute additional barrie rs to trade, the same remark does not  apply to the payment of the fees
by the importers.
The fact that importers directly be ar the SGS's fees increases the co st of imports and thus the level of
protection of similar goods or their lo cally produced substitutes.  The str ongest increase in this protection
results from applying a minimum sum set at Sw F 430 (about US$307 at the rate of US$1 equals Sw F 1.4).This minimum amount corresponds in re ality to the cost of inspecting abo ut US$29,252 worth of goods, i.e.
around six times the minimum threshold of US$5,000 beyond which inspection is required.
The practice of a minimum fee may add  up to nearly six additional points  to the level of  protection already
provided by import duties in the absence of inspection, and about five points where fees are levied at themaximum rate of 1.05 per cent .  As the additional level of protection is inversely proportional to the value of
importation for goods worth less than US$29,252, the more closely the value of the imports approaches thethreshold of US$5,000 required for inspection, the higher the level of additional protection.  It is highlyprobable that the minimum fee is generally applied in Guinea because of the low purchasing power of thepopulation and the small size of enterprises.
10. The current customs valuation procedure is based on the Brussels Definition of Value, that is,
the price which it is considered could be obtained at a sale taking place under conditions of fullcompetition between a buyer and an independent seller.
5  Customs officers have recently been given
training concerning the Brussels Definition of Value by the SGS.  Guinea has therefore not yet
adopted the definition of customs value in the WTO Agreement.  However, Guinea has not had
recourse to the delayed application allowed to developing countries by Article 20 (Special and
Differential Treatment) of the Agreement on Im plementation of Article VII of the GATT 1994.  In
addition, flat-rate values are used to calculate the duties and taxes for certain products, in particular
rice and certain beverages (Section (iv) below).
11. After preshipment inspection, a report is fo rwarded by the SGS branch in the exporting
country to the liaison office in Conakry within not more than 48 hours.  The importer or an authorized
customs agent6 must supply the liaison office with a copy of the business books and with supporting
documents concerning the customs regime requested.  The goods described in the final documentsmust conform to the preshipment inspection report; in the event of disagreement, the SGS may
                                                     
4 For certain products, the costs are lower: 0.92 per cent for petroleum products, 0.72 per cent for
certain foodstuffs (sugar, flour, milk) and 0.70 per cent for rice.
5 The definition is given in Article 24 of the Customs Code.
6 The authorization conditions are defined in Articles 83, 84 and 85 of the Customs Code.WT/TPR/S/54 Trade Policy Review
Page 28
perform inspections at destination.  Most of the corrections made by the SGS relate to values.  Where
goods liable to inspection arrive in Guinea without having undergone preshipment inspection, the
PSRD implementing decree provides for inspection at destination and penalties for a subsequent
offence; for the second inspection on arrival, the duties and taxes are increased by 50 per cent, and
after the third offence the goods are seized.  The SGS has only begun to apply these penalties since
the beginning of 1998;  however, as at  November 1998 no seizure had taken place.
12. Duties and taxes are calculated by the SGS by means of a Tax Statement (BDT) on the basis
of the data in the inspection report (quality, quantity, tariff heading) and of the final documents
delivered to the liaison office.  The importer or agent uses that document when the goods arrive to pay
the duties and taxes at a commercial bank specially authorized for this purpose.  The duties and taxesare then transferred to a customs account at the Central Bank and from there to the Treasury.  The
BDT is the document which serves as the basis for payment of the duties and taxes, the customs
declaration and removal of the goods.
13. The Customs Code (Article 22) provides that a Special Tariff Commission based at the
Ministry of the Economy and Finance should be set up to provide legal remedies for the settlement of
disputes concerning the type, origin or value of declared goods.  As of the end of November 1998, the
implementing texts determining the composition of this commission and its operating procedures had
not been issued.  Disputes brought before the SGS by declarers must give rise to a review within
48 hours by the SGS branches in the exporting countries concerned.  The customs authorities take no
part in the final decision, which therefore depends wholly on the assessment made by the SGS branch;
no provision is made for legal appeal by the importer.
(iii) Customs clearance
14. The detailed declaration is drawn up and lodged by the importer or his agent on the basis of
the BDT, together with the business documents re quired and the receipted BDT proving that the
duties and taxes have been paid.
7  The Taxpayer Identification Number (TIN) appearing on the BDT
must be included on the customs declaration, together with the VAT number, which is needed in order
to qualify for deductibility on certain imported goods and in order not to pay the 3 per cent flat-rate
levy imposed as an advance payment on various taxes (Section (iv)(b) below).
15. The clearance of goods not subject to the PSRD follows the normal customs procedures
(lodging of the declaration, acceptance, registration, documentary and physical verification,
calculation and payment of duties and taxes, and removal) but is nevertheless subject to the following
obligations:  routine inspection in every case of all goods declared, signing of the removal order
within 48 hours, payment of the duties and taxes directly into the account of the special customs
collector at the Central Bank.  Removal of goods not subject to the PSRD is conditional on the priorfixing of the SGS stamp on the bill of lading or on the original of the air waybill.
16. Customs procedures have been computerized since 1993 for Conakry Port on the basis of the
SYDONIA automated customs system, version 2.0.  However, the other customs offices are not yet
computerized. Customs formalities (acceptance, registration of the declaration, documentary and
physical verification in cooperation with the SGS, and removal of the goods) are currently carried out
within 48 hours (if all the required documents are supplied), as compared with the period of five daysneeded to clear goods before computerization.
8
                                                     
7 For goods not subject to the PSRD, the calculation and payment of duties and taxes are carried out
after the detailed declaration has been l odged, accepted, registered and verified.
8 An emergency removal procedure is provided for perishable goods.Guinea WT/TPR/S/54
Page 29
17. Provision is made in the contract between the SGS and the Guinean State for the documentary
and physical monitoring of suspensive arrangements .  At the moment, that company only carries out
documentary monitoring of the warehousing procedure;  the customs service carries out physical
monitoring of the warehousing procedure and documentary and physical monitoring of the other
regimes.  Guinea has 17 warehouses, of which 8 are for vehicles, 3 for lubricants, 1 for explosives, 1
for used clothing, 1 for sheet coils, 2 for electro-generating sets and 1 for petroleum products.
18. The main customs infringements concern over-invoicing, change of destination, false
declarations of value and heading, and smuggling.  The usual products smuggled are the most heavily
taxed goods, mainly petroleum products and cigarettes.  The customs service does not possess
sufficient suitable equipment for controlling smuggling, which takes place both by sea and by land.
(iv) Import duties
19. The system of taxing imports has changed little since 1996 (Table III.2).  The trend has
generally followed the direction taken by reforms in the other countries of the West African
subregion.9 MFN import duties consist of: the import customs duty (DDE), the fiscal import duty
(DFE) and the clearance fee (RTL), as well as of the community levy (PC) collected for the benefit of
ECOWAS and the additional centime (CA) paid to the Chamber of Commerce.  Domestic taxes (VAT
and consumption surcharges) are also levied on imports at the "customs cordon".  Other taxes may be
levied depending on the product or customs regime:  the special tax on petroleum products (TSPP)
which is a domestic tax, the registration tax (TE) on imports under the Investment Code, the storage
tax (TEN) where goods are placed in storage and the transit duty (DT) on goods imported under this
regime.  The trend of these duties and taxes since 1990 is given in Table III.2.  Guinea has used theHarmonized System Nomenclature since 1986, although it only became a party to the Convention in
1997.
Table III.2
Customs taxation of imports, 1990-98(In per cent, unless otherwise indicated)
Duties and taxes 1990 1991 1992 1993 1994 1995 1996 1997 1998
DDE 2-7 2-7 2-7 2-7 2-7 2-7 2-7 2-7 2-7
DFE 6; 8 6; 8 6; 8 6; 8 6; 8 6; 8 6; 8; 22; 23 6; 8; 22; 23 6; 8; 22; 23
RTL - - 0.25-2 2 2 2 2 2 2
PC .. .. .. .. .. .. .. .. 0.5
CA .. .. .. .. .. .. .. .. 0.25
SC .. .. .. .. .. .. .. .. 5, 9, 10, 20,
25, 30, 50, 70
TSPP
(francs/litre)20; 30;
6020; 30;
6020; 30;
6020; 30;
6020; 30; 40;
70; 145;
415; 42520; 30; 40;
70; 145;
415; 42520; 30; 40; 70;
100; 135; 325;
33520; 30; 40; 70;
135; 160; 245;
3555; 10; 20; 30;
40; 50; 60; 70;
135; 160; 245;
355
T C A / V A T 1 01 01 01 3 1 3 1 3 1 8 1 8 1 8
D T 2222 2 2 2 3 3
TE - - - - - 0.5 0.5 0.5 0.5
T E N 1 1 111 1 1 1
.. Not available.
DDE = droit de douane d'entrée (import customs duty);  TVA – VAT;  TE =  taxe d'enregistrement (registration tax);  TSPP =  tax e
spécifique sur les produits pétroliers (special tax on petroleum products);  DFE =  droit fiscal d'entrée (fiscal import duty);   SC =  surtaxe de
consommation (consumption surchage);  TEN =  taxe d'entreposage (s torage tax);  TCA =  taxe sur le chiffre d'affaires (turnover  tax);
DT = droit de transit (transit duty);  RTL =  redevance sur traitement de liquidation (clearance fee);  CA =  centime additionn el (additional
centime);   and PC =   prélèvement communautaire (community levy).
Source: Guinean authorities (National Customs Directorate).
                                                     
9 During an experiment in the total liberalization of imports into Liberia, which lasted six months,
Guinea's official imports decreased strongly through deflection of traffic.WT/TPR/S/54 Trade Policy Review
Page 30
20. Except for VAT, the basis of all  ad valorem  duties and taxes is the c.i.f. value, or the flat-rate
value for certain products.  The 1997 Finance Law thus fixed the flat-rate values for rice at US$240
per metric tonne, for beer at GF 400 per 33-centilitre tin or bottle and for alcoholic beverages at
GF 3,000 per litre.  The VAT basis is composed of the c.i.f. value (or possibly the flat-rate value)
increased by the amount of duties and taxes paid on inputs.10
(a) Nature and level of MFN duties
21. Guinea grants at least MFN status to all countries.  Import duties comprise the DDE at the
rates of 2 per cent and 7 per cent;  the DFE at the rates of 6 per cent, 8 per cent, 22 per cent and 23 per
cent; the RTL at the single rate of 2 per cent;  the PC of 0.5 per cent levied on imports from countriesother than those of ECOWAS; and the CA of 0.25 per cent levied on behalf of the Chamber of
Commerce.  Three categories are employed for dividing the products among the different DDE and
DFE rates:  essential goods such as certain food products and medicines, major consumer items like
cement, clothing and building materials and "luxury products" ( inter alia , alcohol, high-powered
vehicles).
11  The highest DFE rates, namely 22 per cent and 23 per cent, which have been in force
since 1996 (Table III.2), apply to imports of rice, flour and vegetable oil respectively.  Products
exempted from the DDE and DFE are agricultural machinery and equipment, fertilizers, medicines,
fishing nets and outboard motors.  Import duties are  ad valorem ;  however, a minimum duty of
GF 400 per litre is laid down for wine imports.12
22. Special taxes are levied on imports effected under certain special customs regimes:  the TE is
levied at the rate of 0.5 per cent on imports by enterprises authorized under the Investment Code;  the1 per cent TEN is levied on goods placed in a warehouse;  and all goods in transit are subject to the
DT of 3 per cent.  Imports subject to the TE, TEN or  DT are not liable to any other duties or taxes.
23. The simple arithmetical average of import duties (excluding PC and CA), calculated on the
5341 lines (HS, 6 digits) in the existing tariff, is 16.4 per cent, with a 2 per cent minimum and a32 per cent maximum.  The 0.16 variation coefficient indicates that average duties vary little between
the various groups of products (Chart III.1); the most protected is that relating to food products,
particularly edible oils and flour.  The most lightly taxed products are non-electric machines and
transport equipment.  The collection rate for import duties (i.e. revenue collected only in respect of
duties as a percentage of the total value of imports) rose from 7.9 per cent in 1996 to 9 per cent in1997.
                                                     
10 The fees of the SGS are not included either in the import-duty basis or in the domestic-tax basis.
11 This division of products into categories is being amended so as to align it on the four-category
division adopted, for example, by the West African Economic and Monetary Union (WAEMU).
12 Ministerial Order No. A/97-3704 of 14 July 1997.Guinea WT/TPR/S/54
Page 31
24. Import duties show a generally negative escalation from unprocessed products to finished
goods, including semi-finished products (Chart III.2):  subject to exemptions, unprocessed products
enjoy the highest nominal tariff protection, followed by semi-finished and then finished goods.  This
should be reflected in higher nominal than effective rates of protection.  This is not the case, however,
for activities authorized under the Investment Code, the raw materials for which are subject to import
duties at the single rate of 6 per cent (Chapter II(4)(ii), Table II.1).
(b) Other duties and taxes25. A consumption surcharge has been levied on "luxury products" since 1986.  On imports, the
surcharge is  ad valorem  and comprises eight rates:  5 per cent on paints and varnishes, tubes and pipes
of polyvinyl chloride (PVC) and aluminium sheet and strip;  9 per cent on cigarettes;  10 per cent on
used vehicles, turntables, video recording equipment and mineral water; 20 per cent on sweetened
beverages;  25 per cent on wines; 30 per cent on fruit juices;  50 per cent on liqueurs;  and 70 per cent
on beers (Table III.3).  The surcharge is also levied on locally manufactured products, for example
beer and cigarettes.  However, the method of taxing local products differs from that for imports ofidentical products:  for example, beer produced locally by the Guinea Brewing Company
(SOBRAGUI) is subject to a specific tax of GF 20 per bottle with a content of 50 centilitres or less,
while imported beers are taxed under this surcharge at the rate of 70 per cent.  Imports are more
heavily taxed than locally produced goods.  This difference in taxation provides additional protection
for local products.WT/TPR/S/54 Trade Policy Review
Page 32
02468101214161820
ISICa
111
121-122
130
210-290311-312
313
314
321
322-324331-332
341
342351-352ISIC
a
353-354
355
356
361-369
371
372
381
382383
384
385390
400Description 
Agricultural and livestock production
Foresty and forestry operations
Fishing
MiningFoodstuffs
Beverages
Tobacco
Textiles
Clothing, leather articles and footwearWood and wood products
Paper products
PrintingChemicals, including pharmaceuticalsDescription 
Petroleum products
Rubber products
Plastic products
Pottery and china, glass and other non-metalic mineral products
Iron and steel
Non-ferrous metals
Metal products
Non-electrical machineryElectrical machinery
Transport equipment
Professional and scientific instrumentsOther manufactures
Electrical energyChart III.1
Average import duties (excluding community levy and additional centime) by sector, 1998
Percentage
a
Source : International Standard Industrial Classification.
WTO Secretariat on the basis of customs duty of the Republic of Guinea.Guinea WT/TPR/S/54
Page 33
15.615.816.016.216.416.616.817.0Chart III.2
Average tariff according to stage of processing by sector (ISIC Revision 2), 1998
Source : WTO Secretariat on the basis of information supplied by the Guinean authorites.Percentage
Unprocessed productsSemi-finished productsFinished productsAll products
Total Manufacturing 
industriesMining 
industriesAgriculture
26. The TSPP is a special tax applied to imports of petroleum products, in addition to the DDE of
7 per cent, the DFE of 8 per cent and the RTL of 2 per cent.  It amounts to GF 355 per litre for petrol,
GF 245 per litre for diesel, GF 160 per litre for petroleum spirit and GF 135 per litre for kerosene.
27. VAT replaced the turnover tax (TCA)13 on 1 June 1996.  It is currently applied at the rate of
18 per cent; exports are zero-rated.  Exemption from VAT is granted for newspapers and magazines,
rice, flour, wheat, bread, edible oils and, on certain conditions, pharmaceuticals, fertilizers and
phytosanitary products, and school books and supplies.14  The law provides for the net reimbursement
of VAT credit for exports. For the other cases, the VAT credit can simply be carried forward.15  A
progressive charging process is provided for in ca ses like the petroleum products used in the fixed
equipment of industrial enterprises.  On the other hand, the charging of VAT credit is not permitted in
cases like fuels for motor vehicles.
                                                     
13 Law 95009 of 28 December 1995.
14 Article 17 of the 1996 Finance Law.
15 The carry-forward is designed to facilitate the campaign against fraud, which reportedly consists in
applying for the reimbursement of false VAT credits, but has the disadvantage of penalizing certain enterprises,among them those which provide their own equipment or accumulate stocks.  A provision of this nature mayalso encourage exemption applications which are difficult to check.WT/TPR/S/54 Trade Policy Review
Page 34
Table III.3
Distribution of tariff headings according to the rates of consumption surcharge, 1998
Rates (percentage) Total number
of lines
HS Chapter Description5 9 10 20 25 30 50 70
20 Fruit and vegetable preparations 13 13
2 2 B e v e r a g e s 2116 2 9 2 1
24 Tobacco 3 3
32 Tanning or dyeing extracts 9 9
33 Essential oils 17 17
34 Soaps 1 1
39 Plastics and plastic articles 2 2
42 Leather articles 3 3
43 Pelts and furs 18 18
58 Special fabrics 1 1
67 Feathers and down 8 8
71 Pearls, gemstones, precious
metals, jewels and currency12 12
76 Aluminium and aluminium
articles88
85 Electrical machinery and
equipment15 15
87 Motor vehicles 22 22
88 Air or space navigation 7 7
89 Sea or river navigation 3 3
95 Toys and sporting articles 19 19
96 Miscellaneous articles 8 8
Total 20 5 55 64 6 29 2 9 190
a Six-digit tariff headings of the Harmonized System (HS).
Source: WTO Secretariat.
28. A 3 per cent flat-rate levy is due on all imports by natural or legal persons not registered for
VAT.  The levy can be charged against the tax on industrial and commercial profits and corporation
tax due for the financial year in which the operations take place.  This advance payment is levied on
behalf of the National Tax Directorate. The purpose of the levy is to persuade the informal taxpayer to
make himself known in order not to lose the sums  deposited as down-payments at the time of his
import operations.
(c) Tariff bindings29. Under the Uruguay Round, Guinea has bound its ta riffs applicable to agricultural products
(like the other WTO Member countries).  For this purpose it adopted rates of:  40 per cent for the
import customs duty (DDE), 8 per cent for the fiscal import duty (DFE) and 2 per cent for the
clearance fee (RTL).
16  However, DFE rates of 22 per cent and 23 per cent are applied to products
such as rice, flour and vegetable oil.
30. Tariffs on the other products have not been bound, apart from Chapters 45 (cork and articles
of cork), 47 (pulp and other cellulosic materials), 66 (umbrellas and sun umbrellas, walking-sticks,
etc.) and 86 (railway/tramway locomotives, rolling- stock, etc.).  The DDE rates have been bound at
40, 20, 30 and 25 per cent respectively for the products in these chapters.  The DFE, RTL and TCA
have been bound at the rate of 8, 2 and 13 per cent respectively for those products.
                                                     
16 The turnover tax (TCA) had been bound at the rate of 13 per cent.  It is no longer in force.Guinea WT/TPR/S/54
Page 35
31. Tariff bindings do not concern products previously included in Schedule CXXXVI of Guinea,
i.e. those for which the rates were bound when Guinea was a colony.
(d) Tariff preferences32. Under the ECOWAS agreements, local and ha ndicraft products included on the list of
products adopted by the Community should have been circulating free of all import duties
17since
1 January 1990 when they are accompanied by a certificate of ECOWAS origin issued by the
competent body appointed by the exporting country.  Finished industrial products originating in the
Community should be the subject of tariff reductions fixed according to different criteria, including
the level of industrial development of each member country and its island or landlocked nature.Products must be approved in accordance with the scheme adopted by the ECOWAS Council of
Ministers.
18
33. In practice, numerous barriers to trade be tween Guinea and the other ECOWAS countries
remain owing to the failure of most of the members to  apply all or part of the rules of the agreements.
On the basis of reciprocity, Guinea does not comp ly with ECOWAS rules in the case of countries
which do not themselves comply with them.
34. Guinea has signed bilateral trade agreements with certain countries (Chapter II(5)(iii)).  Some
of these agreements specify reciprocal trade preferences and rules of origin.  For example, the
agreement with Morocco provides for customs-duty exemption for a list of Guinean products
(particularly fishery products, fruits, spices, oilseeds, ores, skins, wood and wood products, gold,diamonds and scrap) and a list of Moroccan products (particularly food preparations, cheese, fruit and
vegetables, oilseeds, fatty oils and bodies, ores, chemicals, pharmaceuticals and cosmetics,
agricultural inputs, textiles and clothing, wood and wood products, metals and metal products,
machinery and equipment, and vehicle parts).
(e) Tariff and fiscal exemptions
35. Reduced rates of duty are granted for certain imports.  These reduced rates result from
conventions between the Government and certain importers.  Vehicles imported by companies such as
the Guinea Bauxite Company pay duty at the agreed rate of 5.6 per cent compared with a normal rateof 17 per cent.  Agreed rates for the specific tax on petroleum products are likewise applied to imports
intended for fisheries, air navigation or recognized mining companies.  Imports effected by diplomatic
missions or international organizations, as well as official foreign grants and assistance, are exempted
from duty.  Exceptional exemptions are granted by the Minister for the Economy and Finance at the
request of importers.  Applications for such exemptions are examined by the Legal Service of thePrivate Office of the Minister for the Economy a nd Finance and the SGS; the Customs Directorate
ensures that the Minister's decision in this connection is followed up.  In addition, imports with partial
or total exemption from duties and taxes are allowed by the Customs Code, the Investment Code and
the Mining Code.  Monitoring of the conditions to be fulfilled by approved enterprises is carried out
by the Legal Service of the Private Office of the Minister for the Economy and Finance, the SGS and
the Customs Directorate.
                                                     
17 Decision C/DEC.8/11/79.
18 Decisions C/DEC.3/6/88 and C/DEC.4/7/94.WT/TPR/S/54 Trade Policy Review
Page 36
36. Around 45 per cent of imports released for consumption were exempted from import duties in
1996.19  Imports under the heading of foreign aid constituted the largest share of exemptions (over 40
per cent).  The category of partial miscellaneous exemptions is also relatively large (Table III.4).
Since 1995 imports of capital goods under the Investment Code have been subject to import duties of
2.5 per cent, to RTL at 2 per cent and TE at 0.5 per cent.  Raw-materials imports by approved
enterprises are subject to a single import duty of 6 per cent.  Exemptions granted in this framework
represented 12.5 per cent of all imports exempted in 1996 (Table III.4).
Table III.4
Exempted imports by major categories, 1996
Categories Value (GF million) Share (%)
Diplomatic privileges 6,385 2.0 %
Investment Code 39,211 12.5 %
Vehicle imports 711 0.2 %
Grants and aid 129,943 41.4 %
Miscellaneous partial exemptions 117,202 37.3 %
Petroleum product exemptions 20,597 6.6 %
Total 314,049a100 %
a i.e. 44.6% of total imports released for consumption.
Source: Guinean authorities (National Customs Directorate).
(v) Rules of origin
37. Article 17 of the Customs Code states that the country of origin of a product is the one where
it was harvested, mined or manufactured.  The orders of the Minister for the Economy and Finance
which should define the rules for determining the origin of goods not falling within the category of
these products have not yet been issued.  The conditions under which proof of origin must beproduced are laid down by regulation.
38. Rules of origin exist for preferential treatment purposes in trade agreements to which Guinea
is a signatory. Under the Lomé Convention, complete processing (goods produced entirely locally) or
sufficient processing (change of tariff heading) of a product gives it as its origin the ACP countrywhere processing took place.  Rules of origin as regards ECOWAS (Chapter II(5)(ii)(b)), the Mano
River Union and the majority of bilateral trade agreements, particularly that signed with Morocco, are
based on percentages of local inputs used or on the percentage of national added value in the finished
product.
(vi) Anti-dumping, countervailing and safeguard measures
39. Guinea has no national legislation on anti-dumping, countervailing or safeguard measures,
20
nor has it applied any of these measures.
(vii) Prohibitions, quantitative restrictions and licensing
40. Guinea has dismantled quantitative import restrictions on a large number of products.  Some
of the current restrictions are being maintained for reasons of health, safety and morality or in
                                                     
19 Under the 1996-99 structural adjustment programme, measures have been taken to reduce the
magnitude of exemptions (e.g. abolition of exemptions for rice imports and of certain exemptions forgovernment procurement and limitation of exemptions for petroleum products consumed by foreign orinternational institutions).
20 WTO documents G/ADP/N/1/GIN/1, G/SCM/N/1/GIN/ and G/SG/N/GIN/1 of 17 January 1996.Guinea WT/TPR/S/54
Page 37
accordance with international conventions to which Guinea is a signatory. Thus, imports of red meat
of United Kingdom or Irish origin are banned at present.  Implementation of this measure is the
responsibility of the SGS.
41. In order to allow sales of domestic production of potatoes estimated at 3,000 tonnes per
annum, imports of this product are prohibited from February to June.  This temporary prohibition isnegotiated between operators (producers and importers) and the Chamber of Commerce, under the
auspices of the Ministry of Trade.  It is implemented by means of a letter from the Minister for the
Economy and Finance to the National Director of Customs.  The latter then drafts a circular addressed
to his services and to all importers.  Guinea also used to apply import quotas or seasonal prohibitions
to certain "sensitive" products.  In order to permit the disposal of local production, an import quotawas therefore applied to imports of flour:  over 1,500 tonnes per annum, imports of this product were
banned.  The quota was managed by the importers' association which apportioned among its members
the descriptive import applications (DDI) which it obtained from the SGS.  The flour import quota
was lifted during the year after importers had undertaken to market the whole of local production by
the Grands Moulins de Guinée company.
42. Under the Programme for the Security of Customs Revenue (PSRD), the implementation of
which was entrusted in June 1996 to the SGS, all imports whose f.o.b. value is at least US$2,000 must
be covered by a DDI.  This document, which is valid for six months and can be extended, is delivered
to a local commercial bank for domiciliation.  Imports worth at least US$5,000 (f.o.b.) must be
inspected by the SGS before shipment (Section (i i) above).  The maximum period for obtaining the
DDI is 12 hours.
(viii) Standards and ecological and other technical requirements
(a) Standards, testing and certification
43. Since 1989 Guinea has adopted national legislation on product standardization and
certification.
21  The National Institute of Standardization and Metrology (INM) is responsible for
implementing Government policy on standardization and related activities (quality, certification and
metrology).  Since 1993 it has had the status of a public scientific and technical establishment under
the supervision of the Ministry of Industry.  The INM received assistance from UNIDO between 1995
and 1996.  This assistance consisted in the financing of a consultation mission on standardization and
quality control in certain branches (e.g. fisheries, wood, agri-food industry, construction materials)and in support in drawing up a proposal for technical assistance to the INM for submission to donors.
44. There are two types of standards in Guinea:  approved standards and registered standards.
Registered standards are of a voluntary or optional nature while approved standards are of mandatory
application throughout the country.  Standards may become mandatory in Guinea mainly for reasonsof safety, hygiene and public health and protection of individuals, living organisms, the environment
and national treasures.  The definitive approval of a standard is preceded by a preliminary enquiry
among the parties mainly concerned.  However, a standard may be approved without enquiry by
decision of the Minister for Industry (on the basis of reasons submitted by the INM).
45. INM has defined priority sectors for standardization.  These are:  the agri-food sector,
electricity, fisheries, wood, the environment and civil engineering, including buildings and publicworks (BTP).  Standards are adopted by technical commissions made up of all the parties concerned
                                                     
21 Ordinance 036/PRG/SGG/89 of 20 May 1989, Decree 105/PRG/SGG/89 of 20 May 1989,
Decree 93/PRG/SGG of 20 July 1993, Law 93/040/CTRN of 15 October 1993 and Decree D/93/209/PRG/SGGof 21 October 1993.WT/TPR/S/54 Trade Policy Review
Page 38
(inter alia , representatives of the INM, consumers' association, producers, importers and control
bodies).  These commissions are sovereign and independent.
46. Fifteen draft general standards were adopted in 1997 and are currently being approved in
respect of magnitudes, units and symbols.  Three draft standards on coffee were adopted in the agri-
food sector and are in the process of preliminary enquiry.  In the civil engineering/BTP sector, threedraft standards on cement were adopted and are being approved.  In the electrotechnical field, a draft
standard on wooden posts was adopted.  A draft standard on water was prepared as regards the
environment.
47. Guinean enterprises currently employ foreign standards for the disposal of their products on
foreign markets; the standards concerned are mainly those laid down by the International
Standardization Organization (ISO ), the WHO/FAO Codex Alimentari us and those drawn up by other
internationally recognized bodies (e.g. the French Standardization Association).  National standards
drawn up on the basis of these foreign or intern ational standards apply to products for the local
market.  Imported products must comply with approved national standards.
48. The approved Guinean standards currently in force are:  NG04-01-001 on hydraulic binders
for the specific control of special characteristic s of cements;  NG04-01-002 on hydraulic binders for
the verification of delivery quality (packagings and marking);  and NG04-01-003 on hydraulic binders
for common cements (composition, specification and conformity criteria of cements for tropical use).
Standards NG02-01-002 on coffees and their derivatives (vocabulary) NG02-01-002 on green coffee
(specification) and NG02-01-003 on green coffee in bags (packagings and markings) are in theprocess of approval.  Standard NG06-01-001 on wooden posts (specifications) has been registered.
49. General rules have been drawn up on certification.  The logo of the national quality
promotion mark has been registered with the Worl d Intellectual Property Organization (WIPO) via the
Industrial Property Service (SPI) of Guinea.  However, the national certification system has not yetbeen set up.  Certification is currently carried out mainly by the SGS during the preshipment
inspection of import products.  Acceptance or rejection of the tests performed by foreign laboratories
is left to the sole judgement of the SGS.
50. The authorities state that no requirement is in force in Guinea regarding marking, labelling
and packaging.
(b) Sanitary and phytosanitary regulations and environmental protection measures
51. In the sanitary, phytosanitary and environmental protection field, the authorities state that
Guinea applies the measures laid down in the international conventions to which it is a signatory.  Thecontrols stipulated by the 1997 Public Health Code for health purposes are not generally performed.
(ix) Government procurement
52. Guinea is not a signatory to the Plurilateral Agreement on Government Procurement
negotiated during the Uruguay Round.  Government procurement procedures are defined in the
Government Procurement Code issued on 3 June 1997.
22  The Code applies to all expenditure on
works, supplies and industrial or service provision contracts, whether these concern orders from the
State, public authorities, State companies, national public establishments or mixed companies with a
majority public financial holding.  For expenditures under GF 40 million for works, GF 20 million for
                                                     
22 Law L/97/016/AN and Decree D/97/250/PRG/SGG of 3 November 1997.Guinea WT/TPR/S/54
Page 39
provision of services and GF 30 million for intellectual services, written consultation of at least three
entrepreneurs or service providers is required.  Other methods of concluding contracts, namely open
or restricted tendering, and private agreement, with or without prior informal consultation, are laid
down for other purchases.
53. Restricted tendering is stipulated for services which are highly specialized or require a special
technique which few enterprises can supply.  Private agreement is used in the absence of a reply to an
invitation to tender, if the tenders are unacceptable, in an emergency, where public safety is involved,
in the event of recognized knowhow or on  the instructions of the donor concerned.23  Informal prior
consultation is necessary when the service requires a patent, an exclusive right, an item of knowhow
or a large preliminary investment.  A number of the Code's provisions are designed to promote the use
of Guinean enterprises and labour.  The Code states that for subcontracts priority must be given to
Guinean enterprises if they possess the conditions of competitiveness required on the technical and
financial levels.  Similarly, a preferential margin and lots reserved24 for craftsmen, trade associations
and enterprises coming under Guinean law may be included in the tender.  The preferential margin
granted on the adjusted price is 15 per cent.  In the case of reserved lots, the beneficiary must apply atmaximum the average price resulting from the award of comparable non-reserved lots.  Finally, under
a government contract, any supplier who hires personnel in Guinea is required to give preference to
the employment of Guineans whenever the required skills are available on the local market.
54. Invitations to tender are published in the Government Procurement Journal (JMP) which
appears on the first and third Thursdays of every month. The interministerial commission for the
opening of envelopes and assessing of bids is empowered to deal with invitations to tender of anamount less than GF 1 billion.  It is composed of a representative of the Ministry of Finance, a
representative of the Ministry of Planning, a representative of the developer and a representative of
the user service.  In the case of external financial assistance, representatives of the bodies concerned
may attend the envelope-opening sessions in an advisory capacity.
55. The National Commission for Major Government Contracts is competent for invitations to
tender involving an amount of GF 1 billion or more.  It is composed of the Minister of Finance, the
Public Employer, the Minister of Planning, the de veloper and the developer's supervisory minister.
Each member may be represented.  These two commissions may enlist the aid of experts.  Opening of
the envelopes containing the tenders takes place in public.  On the other hand, the commissions meetbehind closed doors to choose the contract holder.  Finally, an advisory Government Procurement
Committee under the supervision of the Minister of Finance may be consulted by the latter,
particularly in connection with exceptional procedures and the conclusion of private agreement
contracts.  The conclusion of a private agreement contract, following the opinion of the advisory
committee, is subject to prior authorization by the Mi nister for Finance in the case of contracts for less
than GF 1 billion and to authorization by the President of the Republic (or his authorized
representative) for contracts for GF 1 billion or more.
56. Over the period 1992-96, 1472 Government contracts amounting to a total of GF 1,124 billion
were signed.  On the basis of the amounts, 66.5 per cent of the contracts were awarded by open
tender, 17.7 per cent following restricted consultations and 15.8 per cent by private agreement.
Guinean enterprises obtained 26.8 per cent of Government contracts.  48.7 per cent of contractsrelated to public works.  58.9 per cent of contracts were financed from external resources.
                                                     
23 Article 27 of the Government Procurement Code.
24 Tendering on the basis of lots is used in order to  adapt the size of contracts to that of Guinean SMEs
and SMIs.WT/TPR/S/54 Trade Policy Review
Page 40
(x) Local content requirements
57. Enterprises utilizing local natural resources and raw materials enjoy fiscal and customs
advantages (Chapter II(4)(ii), Table II.1)) if over 50 per cent of their intermediate consumption during
a fiscal year is of Guinean origin.25
(xi) Other measures
58. According to the authorities, no official counter-trade agreement or agreement designed to
influence the quantity or value of goods and services exported to Guinea is in force at present.
Likewise, the authorities have no knowledge of such agreements between Guinean and foreign
enterprises.  The WTO Secretariat has no knowledge of any measure taken by Guinea for balance-of-
payments purposes.
59. Guinea takes part in international trade sanctions decided on by the UN Security Council or
by regional institutions of which it is a member.
(3) MEASURES DIRECTLY AFFECTING EXPORTS
(i) Regulations
60. In order to carry out export operations, it is necessary to hold an importer's/exporter's card
(Section (2)(i)).  The exporter must obtain a Descriptive Export Application (DDE) form which can
be obtained from the commercial banks.  After filling it in, the exporter lodges the DDE with his
commercial bank.  In addition, export receipts for goods worth at least US$500 must be repatriated to
Guinea within 90 days of the date of export.
61. Certificates of origin required by importing countries which grant preferential treatment to
Guinean goods26 are issued to exporters by the National Directorate for Trade and Competition and
then stamped by the customs administration;  the form costs GF 2,000. A Support Centre for Export
Formalities (CAFEX) has been set up by decree to deal with these formalities but is not yet in full
operation (Section (vi) below).
62. Foreign private companies (Veritas and SGS)  commissioned by foreign importers sometimes
take action locally to verify the quality, quantity and packaging of products before shipment.  This
happens with coffee exports.
(ii) Export duties and taxes
63. A fiscal export duty of 2 per cent of the f.o.b. value is levied on the export of all products,
apart from mineral products and derivatives (e.g. gold, diamonds and scrap) and coffee.  Scrap exports
are subject to a specific fiscal export duty of GF 25,000 per tonne.  Exports of handicraft gold and
diamonds are subject to a fiscal export duty of 3 per cent of the f.o.b. price;  the duty is 2 per cent onexports by the Central Bank for Non-Industrial Gold.
64. The coffee export tax is set at US$13 per tonne and is designed to finance coffee-promotion
activities and the payment of Guinea's contributions to the Inter-African Coffee Organization (IACO).
                                                     
25 An intermediate consumption item obtained after processing of imported goods is considered to be
Guinean if the cost of the imported goods is less than 50 per cent of the total cost of the intermediateconsumption item obtained.
26 Owing to lack of information, some exporters do not ask for a certificate of origin.Guinea WT/TPR/S/54
Page 41
A tax of 2 per cent of the f.o.b. value is likewise levied on the re-export of all products (on leaving
Guinea).
65. Taxes are also collected by the Central Bank on exports of bauxite and alumina and paid into
a special account as an advance payment on the various taxes payable by the Guinea Bauxite and
Alumina Company (CBG) and FRIGUIA (which produces alumina).27  These advance payments are
from US$8 to 9 per tonne of bauxite (they vary according to the world price for this product) and
amount to US$1.75 per tonne of alumina.  The tax (advance payment) on alumina is actually collected
at the rate of US$0.5 per tonne of bauxite consumed in producing it.
(iii) Export licensing, prohibitions and other measures restricting exports
66. Under its structural adjustment programmes, Guinea abolished export licences in 1986;  these
were replaced by descriptive export applications (DDE) to which all products are subject.  Customs
verifications are carried out on exit from the country, on the basis of the information in the DDEs.
The formalities for obtaining a DDE take not more than three working days:  DDEs examined by the
Central Bank of the Republic of Guinea (BCRG)28 are returned to the commercial banks, which
collect the appropriate costs and charges, namely a banking commission of GF 2,500 per dossier and
13 per cent taxes levied on that same commission.
67. Gold exports are subject to prior authoriza tion by the BCRG (Annex I.1).  Exports of gold
and diamonds produced on a small scale are carried out by the BCRG, which charges a commission
for that purpose.  Diamonds inspected and appraised by the National Office for the Inspection of
Diamonds and other Gems (BNE), a government ad ministrative and technical establishment, are
packed and sealed by a tripartite commission (BNE, BCRG and the customs administration) in the
presence of the owner or his representative.  The diamonds are then kept by the BCRG until they are
exported.  Besides the 3 per cent duty (Section (ii) above), retention and shipment costs amounting to
GF 500,000 are payable to the BCRG by the owner of  the diamonds, who is also required to pay
administrative costs for customs clearance, c onsignment and transit amounting to GF 250,000.29  Gold
exporters pay laboratory costs amounting to GF 50 per gramme in addition to these charges.
(iv) Export subsidies
68. Under the Investment Code, exporting enterprises30 qualify, in addition to the common
advantages granted to all approved enterprises (Cha pter II(4)(ii) and Table II.1)), for total exemption
from the tax on industrial and commercial profits for five years in proportion to the export turnover.
(v) Duty and tax concessions
69. Exports are zero-rated for VAT:  this gives the right to the reimbursement of VAT credits on
inputs and factors of production used to manufacture the exported goods.
                                                     
27 Advance payments (taxes) are collected under conventions which are periodically renegotiated
between the various parties concerned.
28 At the same time the BCRG validates the operations covered by the DDEs.
29 Law 025/CTRN of 10 June 1993 and various Orders.
30 Exporting enterprises are consider ed to be all production and service enterprises carrying out non-
traditional exports whose turnover in foreign exchange represents more than 22 per cent of the total turnover ofthe enterprise during a fiscal year.  Non-traditional exports  are considered to be exports of goods and services of
Guinean origin, excluding exports of bauxite and its derivatives, gold, diamonds and iron ore.WT/TPR/S/54 Trade Policy Review
Page 42
70. The Customs Code provides for two economic regimes for the encouragement of exports:  in
bond and temporary admission.31  A bonded warehouse is an establishment which is supervised by
customs in order to permit the use of goods (of foreign origin) for which the duties and taxes to which
they are liable are suspended;  this regime is granted by decree.
71. Temporary admission is granted by the National Director of Customs on conditions defined
by order of the Ministry of the Economy and Finance, for example for products which are to be
handled or to undergo finishing or processing on the customs territory.  However, the temporary
admission regime is applied only to provisional imports of public-works equipment and imports of
packaged coffee re-exported as such.  There is no free-zone regime in respect of exports in Guinea.
(vi) Export promotion, financing and assistance
72. The Support Centre for Export Formalities (CAFEX)32 was created in October 1997 in order
to simplify the procedures for exporting agricultural, livestock and fishery products, to assist exporters
with approaches to and documentation on foreign markets and with quality promotion and to train and
alert exporters regarding international trade techniques and the collection and processing of exportstatistics.  The offices of the Fandié and Benty wharfs were opened in 1988.  Once CAFEX is
completely operational, formalities will take place at its single window, which will be located at
Conakry airport.  CAFEX is financed by State subsidies, loans, grants and miscellaneous receipts.
73. A Framework Project for the Promotion of Ag ricultural Exports (PCPEA) was established in
August 1992 with the support of the World Bank (Chapter IV.2(i)).  Following the PCPEA mid-term
review (January 1995 to November 1996), the concept of agricultural export was extended tolivestock and fishery products and coffee and cocoa, in addition to fruit and vegetables which were
formally covered by the project.  The closure date for the project has been postponed from
30 June 1999 to 30 June 2001.  Its total cost of US$24.6 million is being borne at the rate of around
85 per cent by the International Development Association/World Bank.  Under this project, seasonal
credit, export pre-financing and loans for expanding, modernizing and equipping export-orientedagricultural enterprises are granted.
74. The effects of export promotion actions will be limited by inadequate infrastructure and credit
structures for foreign trade, the lack of trade information and the taxation of certain export products.
Guinea has no export credit insurance structures.
(vii) Other provisions
75. Guinea applies no voluntary restraint on exports.  Likewise, no Guinean legislation prohibits
the establishment of export cartels.
(4) 
OTHER MEASURES AFFECTING PRODUCTION AND TRADE
(i) State trading, State enterprises and privatization
76. Guinea has undertaken reforms of its State enterprises as part of its structural adjustment
programmes. Execution of the reforms has slowed over  the past five years.  This slowdown is partly
attributable to the completion of the first phase of the reforms and to the lack of buyers for certain
companies:  five enterprises were taken over by the State because the buyers did not honour their
                                                     
31 Customs Code, Title V, Chapters V, VI and VII.
32 CAFEX is a Government administrative establishment placed under the supervision of the Ministry
for Promotion of the Private Sector, Industry and Trade.Guinea WT/TPR/S/54
Page 43
commitments.33  A new stage of the reforms was to be prepared during 1998. The State enterprises
currently operating in the agricultural and mining sectors would be the main targets of this stage.  In
this connection it is planned to restructure certain companies such as the Bauxite Company of Guinea
for the purposes of privatization.
77. Law L/93/037 of 20 August 1993 lays down the rules for privatizing State enterprises.  A
Privatization Committee is responsible for assisting the Minister in charge of the State portfolio in the
preparation and execution of the privatization programme.  The Committee is composed of a
representative of the Minister in charge of the State portfolio (Chairman of the Commission), two
representatives of the Minister responsible for the technical oversight of the enterprise concerned, a
representative of the Professional Banking Association and two representatives of the Chamber ofCommerce, Agriculture and Industry of Guinea.
78. Enterprises may be privatized by total or partial transfer (for a consideration) of the securities
representing the State share of the equity capital or of the assets of the State enterprise concerned.
Transfer is subject to an invitation-to-tender procedure whose detailed conditions are fixed by decreeissued on proposal by the Minister in charge of the State portfolio in accordance with the
recommendations of the Privatization Committee.  A State enterprise may exceptionally be privatized
by restricted consultation or by transfer of the State's shares to the personnel of the enterprise.
Exceptions to invitation-to-tender procedures are allowed only if special legal or technical
requirements inherent in the articles of associati on or in the activity of the public enterprise require
them, or if it is proposed to transfer securities or parts of the assets to the personnel of the enterprise.
A decree issued on proposal by the Minister in charge of the State portfolio and on recommendationby the Privatization Committee fixes the detailed conditions and the limits of each exception.
79. Table III.5 gives a non-exhaustive list of the public enterprises which are still active.  The
annual receipts resulting from privatizations and paid into the "Portfolio Management" account with
the BCRG (financing of restructuring and privatization activities) are contained in Table III.6.
                                                     
33 Three of the enterprises taken over by the State have already been passed on, negotiations are in
progress on one of them and the last one is being promoted with a view to takeover.WT/TPR/S/54 Trade Policy Review
Page 44
Table III.5
Situation of public enterprises
Main activity Share held by the State (%)
INDUSTRIES
SOBRAGUI S.A.SIPAG S.A.ENTAG S.A.
Usine Jus de fruits de Kankan
Huilerie de Dabola S.A.Complexe Boissons de Foulaya-Kindia
SEQUINA S.A. (Usine de Quinine)
SECTHEMA S.A. (Usine de thé)SAIG-Mamou S.A. (ex-conserverie)
SOPAG-Labé S.A.
SALGUIDIA
SOPROCHIM S.A. (Sopec)
Horizon-Vulcan S.A. (Soguirep)
SOPRAG S.A. (Entra-allumettes)
Usine d'Oxygène et d'AcétylèneSOGIP S.A. (Eniphargui)
SOGUIPLAST
SIPECO (Usine Peintures)
SOGUILUBE, S.A.Beer, fruit juices
PlanningTobacco
Mango, organe, banana juice
Groundnut oilMilk – juice
Quinine hydrochlorate
Green or black teaPurée of tomato, passion fruit, guyava,
papaya, etc.
Essential oils, perfumesFruits
Explosive hunting cartridges
Tyre retreading
Matchboxes
Industrial gasesPharmaceuticals
Plastics
Various paints
Lubricants..
24
..
  4
..
....
..
..
..
..
25
..
..
..
....
..
..
50
Ciments de Guinée S.A.
Ardoisière de Labé
SOMIAG S.A.
SOGUIFAB S.A.EGUIMAT (Usine de carreaux)
Sanoyah Textile
Usines modernes de Conakry
Usine des Meubles de Sonfonia
MINES
Compagnie des bauxites de Guinée
Société des bauxites de Kindia
Friguia
SERVICES
OPG
SOTELGUI
Le Port autonome de ConakryLe Port de Kamsar
Société navale guinéenne
GUINOMARSOGUICOM
GETMA
SOGEACSOMCAG
Air Guinée
SOGETRAGBICIGUI
BPMG
UGAR
SGHI
SGPCement
Slate
Granite
Corrugated ironWindows
Cotton to finished fabric
Preparation and tanning of skins and footwear
Miscellaneous furniture
Bauxite
Bauxite
Alumina
Postal services
Telecommunications
Port servicesPort services
Maritime transport
Maritime transportMaritime services
Maritime services
Airport managementAircraft stores
Air transport
Surface transportBanking services
Banking services
insurance services
Hotel services
Energy (oil production)44
..
..
....
..
..
..
100
100
100
100
  40
100100
100
....
..
  51  49
100
100  51
  30
  60
100
   7
.. Not available.
Source: Guinean authorities.Guinea WT/TPR/S/54
Page 45
Table III.6
Receipts resulting from privatizations, 1990-97
Year Actual receipts Expected receipts
1990 629,000,000 170,000,000
1991 8,000,000,000 1,000,000,000
1992 1,400,000,000 90,000,000
1993 1,200,000,000 200,000,000
1994 2,700,000,000 1,000,000,000
1995 727,000,000 40,000,000
1996 831,000,000 1,550,000,000
1997 631,000,000    ..
.. Not available.
Source: Guinean authorities.
(ii) Subsidies and other forms of production assistance
80. The Investment Code and Mining Code provide for fiscal and customs advantages designed to
promote production by enterprises fulfilling certain conditions and assuming certain commitments
(Chapter II(4)(ii), Table II.1 and II.2)).  Fertilizers are supplied free of charge to coffee planters
during the first three years of using improved seedlings (Chapter IV(2)(ii)(c)).
81. An industrial zone development programme supported by a transitional mechanism for
granting credit to enterprises has been adopted.  Two projects have been initiated in this framework,
one at Conakry and the other in the interior of the country.  Six industrial zones have been defined
around Conakry:  those at Kagbelen (116 ha.), Bentourayah (60 ha.), Sanoyah (70 ha.) occupied
mainly by a textile complex which has been inactive for some years, Soprociment (150 ha.) where acement works is operating, Sonfonia (70 ha.) and Simbayah (136 ha.).
82. In order to promote regional development, industrial zones have been targeted in the
11 prefectures in the interior of Guinea possessing a development and town-planning scheme:  Kindia,
Manou, Faranah, Kissidougou, Macenta, N'zérékoré, Ka nkan, Labé, Boké, Fria and Dubréka.  These
industrial zones do not yet have the necessary facilities; they therefore cannot be used immediately by
entrepreneurs unless the latter carry out the necessary construction work.
(iii) Price regulation and competition policy
83. Price control has become progressively more flexible since 1986.  The law of
December 1994
34 regulating competition and price freedom provides for total price freedom
throughout the national territory.  Nevertheless, when owing to exceptional circumstances and/or the
action of one or more persons the selling price of a strategic or basic good is obviously unrelated to its
cost price, temporary measures may be taken by order of the Minister for Trade.  These measures,
which will be taken, as appropriate, in consultation with economic operators in the sector concerned,would consist in setting an acceptable price level and freezing the prices concerned by Ministerial
order.
84. On a proposal by the Standing National Consultative Committee on Competition and Prices
35
the Ministry of Trade is responsible for drawing up the list of "strategic" or basic products and for
fixing the margins applicable, as regards price dete rmination, to the different selling stages of these
                                                     
34 Law L/94/40/CTRN and Implementing Decree D/94/119/PRG/S GG of 28 December 1994.
35 Decree D/95/033/PRG/SGG.WT/TPR/S/54 Trade Policy Review
Page 46
products.36  The Committee is composed of the Minister of Trade (or his representative), the Minister
for Finance (or his representative) and a representative of certain technical ministries, the Central
Bank, the various chambers of commerce, the Consumer Protection Association and the trade
associations.  It has to be consulted on all price and competition matters and prepares the relevant
national policy.
85. In practice, only the prices of petroleum products are regulated;  these prices are approved for
one year.  The scale of charges taken into account in forecourt prices is revised monthly.  Petroleum
product prices are identical throughout the country as the result of an equalization system.  An
interministerial technical council is responsible for setting prices and for the charges composing them.
It consists of representatives of the Ministry of Trade, the Ministry of Finance, other technicalministries, the Central Bank and the oil companies.  The National Standing Advisory Committee is
the technical adviser to the Interministeri al Technical Council as regards prices.
86. The Law of December 1994 also defines anti-competition practices and the associated
penalties.  However, such practices are not currently monitored as the department responsible is beingorganised. In any case, it will be difficult to apply it as 80 per cent of traders are illiterate.
(iv) Measures for the protection of intellectual property rights
87. Guinea became a party to the African Intellectual Property Organization (AIPO) on
13 January 1990.  The other member States are Benin, Burkina Faso, Cameroon, Central African
Republic, Chad, Congo, Côte d'Ivoire, Gabon, Guinea- Bissau, Mauritania, Niger, Senegal and Togo.
This agreement, known as the Bangui Agreement (Box III.2), establishes a uniform system for theprotection of intellectual property and, in particular, a system for the single deposit of applications for
patents, registration of utility models, trade marks, service marks and other intellectual property rights
recognized by all the countries signatory to the Agreement.  Guinea had no specific national
intellectual property legislation prior to the ratifi cation of the Bangui Agreement.  The Agreement is
now an integral part of Guinea's code of economic activities.
88. The Industrial Property Service (SPI), which comes under the supervision of the Ministry for
the Promotion of the Private Sector, Industry and Handicrafts, is the national structure for liaison with
the AIPO with regard to application of the Bangui Agreement and the contact point for
implementation of the TRIPS Agreement.  It wo rks to promote industrial property protection vis-à-vis
potential users and also helps to settle disputes.  The Bangui Agreement is being reviewed so as to
adapt its provisions to those of the WTO TRIPS Agreement.  The Guinean Association for the
Promotion of Invention and Innov ation (AGUIPI) was set up on 4 August 1997.  Its object is to
contribute to the economic,  scientific and technical development of Guinea through the promotion of
technical inventions and innovations and the protec tion of the interests of inventors and innovators.
This association is still too recent to have carried out any significant action in these fields.
89. The Guinean Copyright Office (BGDA), which is under the supervision of the Ministry of
Communication, is responsible for defending the interests of the creators of literary and artistic works.
Copyright is protected by Law 043/APNICP/80 of  9 August 1980 and its implementing decree.
37  This
protection lasts for the whole lifetime of the author  and for 80 calendar years following the end of the
year of his death.  This legislation also covers neighbouring rights.  Non-payment of rights by public
                                                     
36 Order 95/20/MCIPIE/CAB/95 defines as strategic products petroleum products, fertilizers, seeds,
phytosanitary products, cement, iron, concrete-reinforci ng bars, sheeting, water an d electricity and as basic
products, rice, flour, dairy products, vegetable oils, toma toes, onions, fish, meat, soap, salt, pharmaceuticals and
textiles.
37 Decree 442/PRG/80 of 15 September 1980.Guinea WT/TPR/S/54
Page 47
distributors and private establishments and the unorganized distribution of protected works by shops
and shopping centres constitute the main pr oblems with which the BGDA has to cope.
90. 167 trade marks, 38 trade mark transfer contracts, 41 designs, 18 trade names and 38 patent
applications have been lodged with the SPI since 1992.  The SPI carries out actions (e.g. seminars)
and holds information and awareness sessions as part of its activities.  It encourages the amicablesettlement of disputes concerning intellectual property rights.  Thus, only two disputes were brought
before the courts in 1997.  The most common infringements concern the counterfeiting of trade
marks.  Only one dispute related to a patent.  Penalties consisted of seizure of the products concerned,
the fate of which is decided by the plaintiffs (right holders).
38
91. Guinea became a member of the World Intellectual Property Organization (WIPO) on13 November 1980 and has acceded to a number of international agreements in that area, including
the Berne Convention for the Protection of Literary and Artistic Works on 20 November 1980, the
Paris Convention for the Protection of Industrial Property on 5 February 1982, the Patent Cooperation
Treaty on 27 May 1991, the Treaty on Trade Mark Law on 1 August 1996, the Nice AgreementConcerning the International Classification of Goods and Services for the Purposes of the Registration
of Marks on 5 November 1996, the Locarno Agreement Establishing an International Classification
for Industrial Designs on 5 November 1996, the Vienna Agreement for the Establishment of an
International Classification of the Figurative Elements of Marks on 5 November 1996 and the
Strasbourg Agreement Concerning the International Patent Classification on 5 August 1997.
Box III.2:  The Bangui Agreement on Intellectual Property
Patent legislation  - Patents may relate to any new invention involving an inventive step and industrially
applicable;  plant varieties, animal species and essentially biological processes for the breeding of plants oranimals, other than micro-biological processes, cannot be  patented.  The protection of plant varieties is laid
down in the TRIPS Agreement (Article 27.3(b)).
Layout designs of integrated circuits  are not currently protected.  Patents are protected for a period of ten
years which may be renewed twice for periods of five years.  As renewal is not automatic, the period must be
brought into conformity with the provisions of the TRIPS Agreement, which provides for a 20-year period forthe protection of patents counted from the filing date.  Th ere are also divergences with respect to the granting of
compulsory licences, which may be issued where th e working of the patented invention is prevented by
importation of the protected product.  According to Article 27.1 of the TRIPS Agreement, patent rights may be
enjoyed without discrimination as to the place of invention of the product.  Article 58.2 of Annex I of the Bangui
Agreement concerning counterfeiting when there is no loca l working is not consistent with the provision of
Article 27.1.  The provisions regulating the granting of compulsory licences on public interest grounds mustalso be brought into conformity with Article 31 of the Agreement.  Moreover, the Agreement stipulates that thejudicial authorities shall have the authority to order the defendant to prove that the process to obtain anidentical product is different from the patented process (Article 34).  Faili ng such proof, the process is assumed
to be counterfeited.  This provision does not appear in the Bangui Agreement.
Box III.2 (cont'd)
                                                     
38 The penalties laid down by current legislation in Guinea concerning intellectual property consist of
confiscation of the articles concerned and payment of a fine.  The Bangui Agreement also permits imprisonmentof up to three years.WT/TPR/S/54 Trade Policy Review
Page 48
Legislation with respect to trade marks  – Trade marks and service marks are protected for a period of ten
years from the date of application for registration, renewable indefinitely.  The TRIPS Agreement (Article
16.1) provides for protection against identical or similar signs for goods or services which are identical or
similar to those in respect of which the trade mark is registered where such use would result in a likelihood o f
confusion.  In the case of the use of an identical sign, a likelihood of confusion is presumed.  The Agreementalso provides for increased protection of well-known trade marks (Article 16.2) as well as protection against
the use of identical or similar signs for products that  are not similar.  These protections are not explicitly
provided for by the Bangui Agreement.  According to Article 19.1 of the TRIPS Agreement, the registration o f
a trade mark may be cancelled only after an uninterrupted period of at least three years of non-use.  This
period is five years under the Bangui Agreement (Article 22).
Copyright  - Any original intellectual, artistic or scie ntific work and a title thereof enjoy an exclusive
incorporeal property right enforceable against all persons.  The protection applies in particular to books and
other writings, lectures, addresses and other works of such nature, works created for the stage, musical works,pictorial works, architectural works, maps and graphic reproductions, cinematographic, broadcasting andaudiovisual works, photographic works and translations and arrangements of the above-mentioned works aswell as folklore products.
The TRIPS Agreement also provides protection for computer programs and compilations of data which by
reason of the selection or arrangement  of their contents constitute intell ectual creations (Article 10).  The
Bangui Agreement contains no corresponding provision.  The related rights stipulated in Article 14 of theTRIPS Agreement, such as the protection of performers, producers of phonograms (sound recordings) andbroadcasting organizations, do not appear in the Bangui Agreement either.
Industrial designs and other forms of intellectual property  - The creator of any industrial design has the
exclusive right to its exploitation and sale under the Bangui Agreement.  The duration of the protection
conferred by a certificate of registration for an industrial design expires five years after the deposit of theapplication for registration, but the registration may be renewed twice.  The TRIPS Agreement (Article 26.1)
grants broader rights, in particular with respect to imports. The Bangui Agreement provides for the
registration of trade names for a renewable period of ten years from the date of filing.  Only registered namescan be the subject of criminal penalties.  Appellations of origin are protected if they are registered by theAIPO or if a registration effect results from an international convention to which Guinea is a party.
Source:   WTO (1997).