RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/OMN/6 
8 March 1999 
 (99-0912) 
Working Party on the  
Accession of Oman  
 
 
 
ELEMENTS OF A DRAFT REPORT  
1. The Government of the Sultanate of Om an applied for accession to the World Trade 
Organization in April 1996.  At its meeting on 26 June 1996, the General Council established a 
Working Party to examine the application of the Go vernment of the Sultanate of Oman to accede to 
the World Trade Organization under Article XII of the Marrakesh Agreement Establishing the WTO.  
The terms of reference and the membership of the Working Party are reproduced in document 
WT/ACC/OMN/4/Rev.3. 
2. The Working Party met on 30 April and 28 November 1997;  2 October 1998;  
[25 March 1999] and ......  under the Chairmanship  of H.E. Mr. Munir Akram (Pakistan). 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Oman (WT/ACC/OMN/ 2), the questions submitted by Members on the 
foreign trade regime of Oman, together with the re plies thereto, and other information provided by the 
authorities of Oman (WT/ACC/OMN/5 and Addenda  1 and 2;  WT/ACC/OMN/6 and Addendum 1;  
WT/ACC/OMN/9;  WT/ACC/OMN/11;  WT/ACC/OMN/12;  WT/ACC/OMN/13;  WT/ACC/OMN/14;  ........), including the legislative texts and other documentation listed in Annex I. 
INTRODUCTORY STATEMENTS 
4. The representative of Oman recalled that Oman was an old trading nation, having been at the 
crossroads of international trade for centuries.  Aware of the importance of world trade and the 
importance of rules for the conduct of world trad e,  Oman was seeking Membership in the WTO 
convinced that the universal rule-based system ensh rined in the WTO provided the best recipe for a 
healthy and strong world economy.  His Government  was looking forward to joining the WTO and 
adding its voice to strengthening the multilateral tr ading system.  The Sultanate of Oman had 
embarked upon its economic developm ent in 1970 under the dynamic leadership and guidance of His 
Majesty Sultan Qaboos bin Said.  Remarkable progress had transformed Oman from a subsistence 
economy into a modern one with a sophisticated in frastructure.  Oman's road to development was WT/ACC/SPEC/OMN/6 
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backed by sound economic policies based on free-mark et principles.  However, despite the progress 
made, Oman  remained a developing country, depend ent on a single exhaustible resource.  The share 
of manufactures in total GDP was still very small and manufactures accounted for a tiny part of 
Oman's total exports. 
5. Oman was taking further steps to open the economy;  the privatization programme was 
proceeding smoothly, some laws and regulations we re under revision, and institutional changes were 
taking place.  His Government would be ready to offer meaningful commitments in goods and 
services and accept obligations under WTO rules, k eeping in view Oman's position as a developing 
country, and based on the principle of mutual ad vantage.  Oman was committed to pursuing its 
accession to the WTO, knowing that its trade regime for the most part conformed with the provisions of the WTO Agreements.  Customs valuation and intellectual property were two notable areas where 
existing laws and regulations were not in full conformity with the provisions of the 
WTO Agreements.  Oman would be prepared to  accept all obligations under WTO rules, but 
acknowledged that it would take some time to br ing laws into line with WTO requirements. 
6. In their opening remarks, members of the Wo rking Party welcomed and supported the request 
from Oman to accede to the WTO.  Adherence to the multilateral rule-based system would 
consolidate Oman's open and outward-looking econom y, enhance the universality of the WTO, and 
bring mutual benefits to Oman and Members of the WTO.  Members expected Oman's accession to proceed expeditiously. 
7. The Working Party reviewed the economic polic ies and foreign trade regime of Oman and the 
possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of the Working Party on the various aspects of Oman's fo reign trade regime and on the terms and conditions 
of Oman's accession to the WTO are summarized below in paragraphs 8 to ..... 
ECONOMIC POLICIES 
Monetary and Fiscal Policy 
8. The representative of Oman said that m onetary policy was implemented with two key 
objectives in mind:  to steer the financial system  towards medium- and long- term targets aimed at 
eliminating internal and external imbalances and to smooth fluctuations in bank liquidity.  The Central 
Bank of Oman did not target any specific moneta ry variables at present, but conducted monetary 
policy in consultation with the Government in orde r to contribute to the objectives envisaged in the 
Five-Year Plans.  The Central Bank had the legal au thority to use a broad range of monetary policy 
instruments, including reserve requirements, le nding ratios, rediscount policies, currency swaps,  WT/ACC/SPEC/OMN/6 
 Page 3 
 
 
treasury bills and development bond operations, and the issuance of certificates of deposit.  
Commercial bank interest rates had been deregulated, and all lending rates, except those for consumer 
loans not exceeding RO 9,000, were also freely determined by market forces.   
9. The Government's fiscal policy was very important to the national economy as government 
spending was a driving force for economic activity.  The main source of government revenue came 
from the petroleum sector, and the Government's  resource base was accordingly sensitive to 
fluctuations in oil prices.  Among the objectives of the Fifth Five-Year Plan (1996-2000), Oman 
aimed at achieving a balance between government re venue and expenditure.  Cuts were foreseen in 
current expenditure by civil ministries.  The Government would discontinue net borrowing from 
abroad while encouraging domestic savings by  issuing government development bonds.  The 
Government also sought to minimize dependence on withdrawal from State f unds, and would transfer 
all proceeds from oil sales above US$17 per barrel to  a State Emergency Fund.  The Government also 
intended to increase the share of non-oil income in total revenue. 
10. Income tax was the only tax levied in the Su ltanate of Oman and it applied only to businesses.  
The tax rate varied according to the level of fore ign ownership.  Wholly-owned Omani enterprises 
were taxed at a maximum rate of 7.5 per cent.  Publ ic joint-stock companies were subject to the same 
maximum rate provided that at least 51 per cent of the capital was owned by Omani enterprises or citizens, and at least 40 per cent of the company's shares had been offered for public subscription.  
Joint-stock companies not satisfying these criteria, a nd other enterprises, were taxed at rates ranging 
from 15 to 25 per cent, provided the level of Om ani participation was a minimum 10 per cent.  
Businesses with more than 90 per cent foreign owne rship were taxed according to a sliding scale with 
a maximum rate of 50 per cent.  Foreign enterpri ses without permanent estab lishment in Oman which 
received royalties or fees were subject to a 10 per ce nt tax on company turnover.  Oil exploration and  
production companies were generally taxed under sp ecial rules set out in the relevant concession 
agreements.  Income derived from the retail sale of petrol and petroleu m products was taxed at 
55 per cent.  Foreign investment projects were exem pt from income tax for a period of five years and 
the exemption could be renewed once for another five  years.  Companies in the petrochemical sector 
had no special tax exemption beyond the five- (or ten) year tax holiday.  The tax system in the 
Sultanate was currently under review. 
11. In response to a question raised, the represen tative of Oman stated that the preferential 
income tax rates for Omani businesses could not be  considered a subsidy within the meaning of 
paragraph (e) of the Illustrative List of Expor t Subsidies in the Agreement on Subsidies and 
Countervailing Measures as the treatment was not related to exports. WT/ACC/SPEC/OMN/6 
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Foreign Exchange and Payments
 
12. The representative of Oman said that exchange  control authority was vested in the Central 
Bank, but Oman had no exchange control legislation.   Foreign exchange for payments abroad could 
be obtained freely and no requirements were attached to receipts, or the disposal of foreign exchange 
earnings, from exports or re-exports.  Payments fo r proceeds from invisibles were not restricted.  
Travellers could bring in or take out any amount in domestic or foreign currencies.   Oman had 
formally accepted the obligations of Article VIII, sec tions 2, 3 and 4 of the Articles of Agreement of 
the IMF on 19 June 1974.  There were no restrictions on the movement of capital.  
13. The currency of Oman - the Omani Riyal - was pe gged to the United States' Dollar at a rate of  
US$2.6008 per Rial.  The Central Bank maintained  fixed buying and selling rates with a narrow 
margin around the peg.  Commercial bank rates for other currencies were based on market rates in 
London.  Oman maintained no taxes or subs idies on purchase or sale of foreign exchange. 
Investment Regime  
14. The representative of Oman said that his Government promoted private sector investment, 
foreign and domestic, with a view to achieving di versification by gradually reducing dependence on 
oil as the dominant source of income by promoting the development of manufacturing, services, 
agriculture, fisheries and tourism.  Other i nvestment objectives included job creation for the 
expanding, well-educated local workforce; the development of Omani management skills and 
technical expertise;  gaining access to foreign ma rkets through foreign private-sector marketing 
channels;  and foreign equity participation in la rge, capital-intensive projects.  Omani legislation 
stipulated that projects with foreign investment we re not to be expropriated or confiscated except in 
the case of public interest, e.g. State or national em ergency, and against compensation.  Repatriation 
of capital and profits was allowed freely. 
15. The Commercial Companies Law allowed incor poration in Oman in the form of general 
partnership, limited partnership, joint-venture, joint stock company, limited liability company, or 
holding company.  Each form was available to foreign investors subject to the Foreign Capital 
Investment Law.  According to the Foreign Ca pital Investment Law, non-Omanis could conduct 
business through companies licensed and registered in Om an, or by virtue of special contracts issued 
by Royal Decree. 
16. The representative of Oman said that Omani i nvestors should participate adequately in the 
development of the national economy.  All forei gn investment required approval under the Foreign 
Capital Investment Law.  The Law allowed forei gn investors to own up to 49 per cent of companies  WT/ACC/SPEC/OMN/6 
 Page 5 
 
 
with capital of minimum RO 150,000 (US$390,000) and the share could increase to 65 per cent if 
approved by the Minister of Commerce and Indus try upon recommendation of the Foreign Capital 
Investment Committee.  Foreign ownership of 100 per cent could be accepted in projects with total 
capital exceeding RO 500,000 (US$1.3 million), provi ded the project contributed to the national 
economy.  However, this level of  ownership had to be approved by the Cabinet of Ministers upon 
recommendation from the Minister of Commerce and Industry.  Projects were evaluated case-by-case.  
As a general rule, investment in a strategic i ndustry contributing to the economic development of 
Oman outside the Capital area, transfer of tec hnology and application of new technology improving 
existing infrastructure, would be considered a contribution to the national economy.  Foreign accounting and auditing companies were required to have a local Omani partner owning not less than 
35 per cent of the total capital.  Foreign compani es and individuals were ge nerally not permitted to 
own free hold land, except by Royal Decree, but la nd was available on 50-year extendable leases.  
Foreigners could also be grante d special permission to build temporary work camps.  Foreign 
investment in companies with capital of RO 150,000 or less was effectively banned. 
17. A member believed conditions for foreign in vestment were often decided on a case-by-case 
basis.  The representative of Oman di d not agree with this statement. 
State Ownership and Privatization
 
18. The representative of Oman said that priva tization was part of a government programme 
aimed at achieving sustainable development.  Pr iority was given to privatization of production 
services operated on a commercial basis such as waste water, electricity, water, telecommunications, 
highways and postal services.  Private enterprises ma naged electricity and d esalination plants under 
operation and management contracts.  His Government  was considering to privatize 30 per cent of the 
General Telecommunications Organization (GTO), a nd postal services would be privatized after the 
year 2000.  Rather than a rapid transfer of gove rnment assets, privatization would proceed in a 
gradual manner.  Oman had no intention of priva tizing television or radio at present.  Foreign 
participation (up to 49 per cent) in privatization projects, in accordance with the 1994 Foreign Capital 
Investment Law, was encouraged.  Proceeds from the sale of government assets would accrue to the 
State General Reserve Fund.  Some privatization projects – the Muscat and Salalah Sewage Systems, 
GTO restructuring, electrictiy projects in Salalah,  Sharqiya, Manah and Ghubra, and water projects in 
Dhahira, Sharqiya and the Najd Area – were approaching their final stages. 
19. The Government had also taken steps to privatize public assets in agriculture.  Two 
government-owned date factories had been transfe rred to private ownership.  In the future, all 
agricultural inputs and services were to be provided by the private sector.   WT/ACC/SPEC/OMN/6 
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Pricing Policies
 
20. The representative of Oman said that the Government set (maximum) prices for petroleum, 
electricity, water and telecommunications, keeping in  view the needs and welfare of citizens.  The 
price controls applied regardless of whether a pr oject was operated by the Government or by the 
private sector.  The tariff could not be amended w ithout government approval.  Prices for petroleum 
and telecommunications services were uniform for all users.  Telecommunications charges were 
determined by the GTO under monopoly conditions , taking into account ITU recommendations 
incorporating cost trends.  Telecommunications ta riffs had been lowered four times since 1980.  
Electricity and water was subsidized, and tariffs we re lower for households than for industrial and 
commercial users.  Households pa id Baisa 2 per gallon of water,  while commercial and industrial 
users were charged Baisa 3 per gallon.  Househol ds paid Baisa 10 to 30 per kWh for electricity, 
depending on the level of monthly consumption.  The price of electricity for industrial and 
commercial users was fixed at Baisa 24 per kWh in the Summer months (May-August), and Baisa 12 per kWh in the Winter months (September-April). 
21. A member requested further clarifi cation as to why prices for petroleum and 
telecommunications charges were set above world ma rket levels, and why water and electricity were 
subsidized.  In reply, the representative of Oman sai d that his Government was evaluating an option to 
privatize 30 per cent of the GTO as part of a compre hensive plan to restructure the GTO.  Making the 
GTO a private entity in a free competitive market woul d lead to an overall review of the tariffs at a 
later stage.  Telecom prices in Oman were pre sently comparable to any developing and developed 
country.  The Government had increased local petr oleum prices for fiscal reasons and to encourage 
more rational use of petroleum products.  Electricity tariffs were differentiate d for social reasons and 
to encourage the development of infant industri es.  His authorities were studying a reform of 
electricity and water charges with a view to reviewing and harmonizing the rates, as well as 
privatization options. 
22. In response to a question raised, the representa tive of Oman stated that no goods or services 
other than those mentioned in [paragraphs 20 and 21 ] were subject to price controls.  There were no 
plans to liberalize price co ntrols at this stage.  WT/ACC/SPEC/OMN/6 
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Competition Policy  
23. The representative of Oman said that economic  policy was based on free-market principles, 
and that no specific competition law existed. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 24. The representative of Oman said that His Maje sty the Sultan of Oman was the Head of State 
and Head of Government and was the highest and fina l authority.  The Cabinet, deriving its authority 
from His Majesty the Sultan, was the highest executi ve authority.  The Cabinet considered matters 
related to administrative functions of the State, in ternal policies and relations with other countries, 
including the consideration of international treati es, conventions and charte rs.  The Cabinet submitted 
its recommendations to His Majesty the Sultan for approval.  The functions and jurisdiction of 
ministries were determined, or adjusted, by Royal D ecree.  Each Minister, assisted by one or more 
Under-Secretaries, was responsible for implementing matters within the jurisdiction of the ministry.  
His Majesty had established various specialized co uncils, such as the Financial Energy Resources 
Council, to assist in planning, study and formulation of proposals and plans in specific areas of development.  None of these councils addressed trade issues.  The Sultanate of Oman had no 
sub-central governments. 
25. The legal system was based on laws and Royal Decrees issued by His Majesty.  Oman had no 
legislative body empowered to make or review laws.  International treaties, conventions and charters 
were signed by His Majesty, or by a person designated by His Majesty, in which case such treaty, 
convention or charter was submitted to His Majesty fo r ratification.  After signature or ratification, 
treaties and conventions or charters became part of Oman's legal system as of the date of publication 
in the Official Gazette, unless His Majesty had decided on a different date.  Laws and Royal Decrees were also valid from the date of publication in the O fficial Gazette or from any other determined date.  
All laws, by-laws, implementing re gulations and important Minister ial Decisions were published in 
the Official Gazette.  Routine administrative decisions were not published.  
26. Oman's hierarchy of laws had been established in the following order:  (i)  the Basic Law of 
Oman (Constitution);  (ii)  Royal Decrees;  (iii)   By-laws and Implementing Regulations;  and 
(iv)  Ministerial and Administrative Decisions .  The documents constituting Oman's accession 
package to the WTO would be forwarded by the Minister of Commerce and Industry to the Cabinet, 
which would pass its recommendations together w ith the package to His Majesty the Sultan for 
ratification.  A Royal Decree would be issued followi ng ratification.  He confirmed that ratification of 
Oman's accession to the WTO Agreement would be accomplished by His Majesty, the Sultan's WT/ACC/SPEC/OMN/6 
Page 8  
 
signature or his ratification of the signature of a person designated by him.  The Majlis Ash-Shura and 
the Majlis ad-Dawla would have no rôle in the a pproval or ratification of Oman's accession package. 
27. The representative of Oman said that the juridical system of the Sultanate comprised of 
(i)  Sharia (religious) Courts;  (ii)  Criminal (Magistrate) Courts;  and (iii)  the Authority for Settlement of Commercial Disputes, a juridical -commercial body.  The latter Authority was 
empowered to settle all cases relating to commercial ma tters and other disputes referred to it by law 
and also had jurisdiction in cases involving disput es between trade and government departments and 
agencies.  The Authority was independent from the executive in discharging its juridical functions.  
The role of the Authority in relation to the WT O and the Multilateral Trade Agreements was being 
examined by the Ministry of Legal Affairs. 
28. A newly established Commercial Court had jurisdiction over commercial disputes between 
private sector parties, government departments or authorities and general establishments.  The Court 
consisted of a President and judges appointed by Ro yal Decree, and included primary circuits as well 
as an Appellate Circuit.  Taxation decisions and labour disputes could be  appealed to the Court, which 
provided a mechanism for independent review of administrative decisions.  All decisions of 
government departments or authorities affecting in ternational trade could be appealed to the 
Commercial Court. 
29. A member requested a definitive statement from Oman as to how importers and exporters 
could exercise the right to appeal governmental  decisions as provided for in WTO Agreements, 
including the provision for independent rulings contai ned in Article X:3 of the GATT 1994.  In reply, 
the representative of Oman said that the Basic La w (Constitution) of Oman provided for a right of 
appeal of all administrative rulings and decisions to  judicial bodies.  Oman had reviewed the functions 
of the Commercial Court in relation to the right  of appeal provided for in WTO Agreements, and 
concluded that the Commercial Court probably did not meet fully the requirements of appeal under 
the GATT and WTO.  Precise laws dealing with the right of appeal against governmental decisions 
provided for in WTO Agreements, including in pa rticular Article X of the GATT 1994, would be 
promulgated shortly. 
POLICIES AFFECTING TRADE IN GOODS 
Trading Rights
 
30. The representative of Oman said that no specific requirements existed for engaging in 
importation;  it could be undertaken by any company or individual registered with the Ministry of 
Commerce and Industry under the relevant laws, i. e. the Oman Commercial Law, the Commercial  WT/ACC/SPEC/OMN/6 
 Page 9 
 
 
Companies Law and the Foreign Capital Investment  Law.  An enterprise seeking registration to 
engage in commercial activities submitted an appli cation form together with its Memorandum and 
Articles of Association, and documents identifying th e partners or company directors, to the Ministry 
of Commerce and Industry.  Joint-stock companie s and enterprises subject to the Foreign Capital 
Investment Law should complete the necessary procedures under the Commercial Companies Law 
and the Foreign Capital Investment Law, respectiv ely, before applying for registration in the 
Commercial Register.  Once registered, an enterprise  could engage in importation or distribution of 
imports provided these activities were mentioned in its Memorandum and Articles of Association.  
Registered companies could amend their registration, and acquire the right to trade, by amending their Memorandum and Articles of Association prior to applying for an amendment in their commercial 
registration. 
31. The relationship between a principal/supp lier and his commercial agent in Oman was 
governed by provisions in the Law on Commercial Ag encies.  A commercial agent was defined as an 
individual or company selling, promoting the sale and distribution of goods, or providing services whether in the capacity of agent, representative or intermediary of the manufacturer or supplier of 
goods.  Only Omani nationals or companies with no less than 51 per cent Omani ownership could be 
appointed as commercial agents.  Foreign individuals  were not allowed to e ngage in importation or 
distribution of imports in Oman.  Omani nationals could obtain commercial registration provided they 
had a place of business in Oman, no criminal record or involvement in past bankruptcy proceedings, 
and were minimum 18 years of age.  Citizens of  other Gulf Cooperation Council countries were 
treated as Omani citizens in accordance with Articl e 8 of the Unified Economic Agreement.  This 
Article, which was implemented in a progressive ma nner, did not guarantee GCC nationals the right 
to act as commercial agents in Oman. 
32. A member stated that the Law on Commercial Ag encies would need to be amended to bring it 
into conformity with the national treatment provisions of GATT Article III prior to WTO accession.  
In his view, legal provisions analogous to Om an's Law on Commercial Agencies had been found 
inconsistent with Article III:4 in GATT Panel Re ports.  The representative of Oman saw no conflict 
between the Law on Commercial Agencies and the provisions of GATT Article III.  Foreign firms not 
based in Oman could export goods to Oman thr ough any importer/distributor registered in Oman 
without using a commercial agent.  Importers in  Oman were not required to import through a 
commercial agent.  Individuals a nd firms could import goods for thei r own use without restriction, 
subject to payment of customs duty, if any.  Om ani domestic goods could be distributed only through 
individuals or companies registered in the Commercial Register as distributors of goods. WT/ACC/SPEC/OMN/6 
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33. The representative of Oman confirmed that no special or unique registration requirements 
existed for persons or firms engaging in impor ting or exporting goods except as provided in WTO 
Agreements.  He confirmed that individuals and firm s were not restricted in their ability to import or 
export goods based on the scope of business or thei r registration and that they could easily change 
their registration to allow for trade.  He further confirmed that there were no restrictions, such as 
capital or nationality requirements, on firms wishing to  engage in foreign trad e, and that the criteria 
for registration were published in the official  journal and generally applicable to all. 
Market Access Negotiations
 
[to be completed -  initial offer on goods ci rculated in document WT/ACC/SPEC/OMN/3 of 
24 October 1997.  Foreign Trade Statistics for 1997 (hardcopy) submitted to the Secretariat in 
July 1998.] 
A. IMPORT REGULATION 
Customs code  
34. The representative of Oman said that Oman  followed the 1988 version of the Harmonized 
System for statistical purposes.  Oman expected to implement the Harmonized System (1996) at the 
six-digit level for the classification of goods for customs purposes by June 1999. 
Ordinary customs duties  
35. The representative of Oman said that existing a pplied rates had been in force, with no revision 
taking place, since 1986.  The weighted average MFN tariff amounted to 2.7 per cent in 1994.  Zero 
tariff was applied on seeds, fertilizer and live plants  (including flower plants);  fresh fruit and 
vegetables;  rice, wheat, wheat flour, barley, co rn and sugar;  milk, condensed and sweetened, 
evaporated, powdered or sterilized, but not flavoured ;  cooking oils and fats other than butter or 
margarine;  meat, fresh or frozen;  tea;  cement;  printed books;  agricultural equipment;  insecticides 
(for agricultural use); gold and silver bullion;  a nd currency, including gold sovereign.  These zero 
tariffs were applied on an MFN basis.  Other produc ts were subject to import duty of 5 per cent, with 
the exception of dates (20 per cent), bananas (25 per cent), tobacco and tobacco products 
(50 per cent), and alcoholic beverages, pork meat  and pork products (100 per cent).  All customs 
duties were ad valorem  rates.  There were no seasonal duties. 
36. In response to a specific question, he confirmed that the rate of duty applicable to cement was 
zero and that the tariff on polyurethane products, pain ts and pipes was 5 per cent.  Interested parties  WT/ACC/SPEC/OMN/6 
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seeking a review of tariff rates could approach the Ministry of Finance, which would make a 
recommendation to the Cabinet, which had the final say.  
Other duties and charges levied on imports but not on domestic production  
37. The representative of Oman said that other th an ordinary customs duties, Oman imposed no 
duties and charges of any kind within the meaning of Article II.1(b) of the GATT 1994 on or in connection with importation. 
38. The representative of Oman stated that Om an levied no duties and charges on imports other 
than ordinary customs duties and ch arges for services rendered.  Any such charges applied to imports 
after accession would be in accordance with WTO provisions.  He further confirmed that Oman would not list any other charges in its Goods Market Access Schedule under Article II:1(b) of 
GATT 1994, binding such charges at "zero". 
Tariff rate quotas, tariff exemptions
 
39. The representative of Oman said that there we re no tariff quotas in force in Oman.  All goods 
imported for government use, i.e. not for commerc ial resale, were exempt from import duties.  
Investment projects were exempt from customs du ties on imports of machinery, equipment and raw 
materials required for production.  Also exempt were goods imported by diplomatic missions.  Goods 
imported as humanitarian aid were exempted case-by -case, depending upon the need for aid and the 
credentials of the aid organization.  All im ports from Gulf Cooperation Council countries were 
exempt from duty within the framewo rk of the GCC free trade area.  
Fees and charges for services rendered  
40. The representative of Oman said that the Po rt Services Corporation, a commercial company 
with 35 per cent government owne rship and part of the Ministry of Communications, provided quay 
handling, storage and demurrage services for all im ported products under a contract concluded with 
the Port Authority.  The Port Services Corporati on was the only supplier of these services, but other 
enterprises would also be eligible to enter into a cont ract with the Port Authority.  At present, the Port 
Authority did not encourage other companies to enter the market due to the small size of the port.  
The Port Services Corporation levied certain fees and charges for the services rendered.  These fees 
and charges are enumerated in Table 1 (see Annex). 
41. The representative of Oman confirmed that ch arges levied by the Port Services Corporation 
would be in accordance with Article VIII of the GATT 1994. WT/ACC/SPEC/OMN/6 
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Application of internal taxes to imports
 
42. The representative of Oman said that Oman levi ed no internal taxes such as value-added tax, 
sales tax or excise duty on imported or domestically-produced goods.   
Quantitative import restrictions, includin g prohibitions, quotas and licensing systems  
43. The representative of Oman provided a list of  prohibited imports, reproduced in Table 2 (see 
Annex).  None of the prohibited items were produ ced domestically.  Petroleum products which could 
be supplied by the Oman Oil Refinery in quantiti es sufficient to satisfy domestic requirements were 
prohibited to import.  Import quotas were establishe d for fresh and long-validity milk (annual) and 
eggs (June-September) by the Ministry of Agricultu re and Fisheries.  In recent years, the Summer 
quota for eggs had amounted to 840 tons, and the milk quota to 204,250 tons per month.  The Public Authority for Marketing Agricultural Produce determined annual import quotas for fruit and 
vegetables.  Quota levels were based on forecasts of domestic production and demand.  Daisy plants 
were considered a narcotic plant and prohibited to import for health reasons. 
44. Imports of radio sets and wireless telegraphs  required authorization from the Ministry of 
Posts, Telegraphs and Telephones (PTT).  Type approval pending, the PTT would issue a provisional 
import licence.  The PTT cleared the frequency used by such radio equipment.  PTT authorization was 
granted on the basis of internationally recognized standards such as those est ablished by the ITU and 
CEPT.  Telecommunications equipment interfacing w ith the GTO network required type approval and 
authorization by the GTO, and clearance by PTT fo r equipment involving radio frequency.  In cases 
where GTO and PTT rulings might conflict, the PTT decision would prevail.  Type approval for 
telecommunications equipment was based on standa rds relating to frequency, radiation, signalling 
(where applicable), and interface conditi ons (for equipment to be interconnected). 
45. The representative of Oman provided detaile d information on the import licensing system in 
document WT/ACC/OMN/5/Add.2.  The system was u sed to administer the quantitative restrictions 
on imports of fresh milk and eggs.  The quantit y permitted to import unde r these global quotas  was 
published in the local press, but individual quota allocations were not published.  Quotas were 
allocated to importers on the basis of their share of actual imports in the preceding year, with no 
arrangements for new entrants.  Unused quota en titlements were not adde d to a succeeding period, 
and licences were not transferable.  Licences were issu ed within one or two days at a fee of RO 2,000 
per licence.  The period of validity for each  licence ranged from one to four months. 
46. The representative of Oman stated that, upon accession, the prohibition on importation of 
petroleum products would be elimin ated and quantitative restrictions  would no longer apply to fruit  WT/ACC/SPEC/OMN/6 
 Page 13 
 
 
and vegetables, fresh and long validity milk, and eg gs.  Oman would not restrict the import of fruit 
and vegetables except in conformity with the prov isions of the WTO Agreements.  Oman would not 
introduce any other import quotas in the future. 
Customs valuation  
47. The representative of Oman said that the existi ng system of valuation in Oman was in simple 
form with no written laws or regulations, or detaile d rules.  The customs valuation system was based 
on transaction value, including cost, insurance and fre ight (c.i.f.).  If the transaction value was not 
accepted, the value of imported goods was determined on the basis of the invoice price of identical or 
similar goods imported earlier.  Minimum prices were  not used in the calculation of import value.  
Oman had no written rules or regulations concerni ng the appeal of decisions relating to customs 
classification, valuation or assessment of duty.  An  aggrieved party would first approach the customs 
officer in charge of the port, airport or land border st ation in question and, if he remained dissatisfied, 
he could appeal to the Director General of Customs. 
48. The representative of Oman said that Oman woul d need to draft new laws and regulations on 
customs valuation in accordance with the Agreement on Implementation of Article VII of the General 
Agreement on Tariffs and Trade 1994 (the Customs Valuation Agreement).  Oman would approach 
international organizations and WTO Members for technical assistance and having studied the design 
and construction of such legisl ation, the drafting exercise woul d be initiated.  In addition, 
administrative instructions, guidelines and manuals fo r the application of the rules would need to be 
prepared and Oman would be seek ing technical assistance for this purpose.  All those involved in 
customs operations would need to undergo thorough training in the law, procedures and techniques.  
He therefore proposed to initiate and execute a comprehensive training programme for customs 
officials, importers and customs brokers with assistance from the WTO Secretariat, the World 
Customs Organization and WTO Members. 
49. A member was concerned by indications that Oman did not expect to implement the WTO 
Customs Valuation Agreement as of the date of acc ession as it considered full implementation of the 
Customs Valuation Agreement an integral  part of the WTO accession package. 
50. In reply, the representative of Oman subm itted an action plan for implementation of the 
Agreement on Customs Valuation, circulated in document WT/ACC/OMN/13.  Oman had taken steps 
to join the World Customs Organization [by the e nd of 1998].  Oman had approached the WTO and 
WCO to provide Oman with a model law on custom s valuation, and was also studying customs 
valuation legislation of WTO Members.  The Custom s Department had set up a Task Force in early 
1998 to carry out an in-depth study of the Agreement on Customs Valuation.  The members of the WT/ACC/SPEC/OMN/6 
Page 14  
 
Task Force met monthly to study the provisions of the Agreement and to discuss implementation, 
including a programme to train customs officials.  Oman's Action Plan set the following deadlines for 
completion of specific steps which would allow Oman to implement the Agreement on Customs 
Valuation in full as from 1 January 2002: 
December 1998: Initiate preparation of a draft la w on customs valuation based on a model law on 
customs valuation and legislation of some WTO Members; 
Early 1999: Initiation of a training programme for customs officials; 
June 1999: Completion of the draft law; July 1999: Draft law submitted to the WTO and the WCO for comment; September 1999: Preparation of revised draft law, taking into account the comments of WTO and 
WCO; 
Fourth quarter 1999: Initiation of the legislative process; 
September 2000: Completion of the legislative process; December 2000: Enactment of the new cu stoms valuation law by Royal Decree; 
End 2000: Completion of the training programme for customs officials;  and 
September 2001: Preparation of im plementing regulations, administ rative guidelines and manuals. 
51. Having reviewed Oman's action plan, some members stated that Oman's timetable for 
implementation of the Customs Valuation Agreement could be accelerated.  A member suggested that initiation of work on implementing regulations, ad ministrative guidelines and manuals at an earlier 
stage, concurrently with the le gislative phase, would allow Oman to implement a WTO-consistent 
customs valuation system by end 2000.  In reply, th e representative of Oman said that Oman's action 
plan was reasonable and could not be abridged as Oman was starting from scratch in this area. 
Other customs formalities
 
52. The representative of Oman said that Oman ha d no rules of origin for non-preferential trade.  
Proof of origin was required only for imports fro m GCC countries, under which origin was conferred 
on goods containing at least 40 per cent value added in  GCC countries.  A certificate of origin was 
considered proof of origin. 
53. A member sought implementation of WTO provision s on rules of origin in the trade regime of 
Oman.  The representative of Oman replied that Oman would abide by its obligations under the 
Agreement on Rules of Origin upon accession. 
54. Regarding customs clearance, the representativ e of Oman said that goods could be cleared for 
home consumption upon completion of documentation, examination and payment of import duty, if  WT/ACC/SPEC/OMN/6 
 Page 15 
 
 
applicable.  Goods could also be warehoused, in  which case duty would be collected when goods 
were released from the warehouse for home consumpti on.  An importer could have goods cleared by 
customs even without the necessary documents, prov ided the importer paid the estimated duty and a 
provisional deposit to be adjusted when docum entation was presented to customs.  Customs 
formalities could be completed prior to the arrival of  goods at the port or airport.  Disputes relating to 
decisions by customs could be appealed or taken to court. 
Preshipment inspection  
55. The representative of Oman said that Oman had no pre-shipment inspection requirements for 
valuation or certification purposes.  He confirme d that the operation of any future preshipment 
inspection system would be consistent with the prov isions and requirements of the WTO, in particular 
the Agreements on Preshipment Inspection and Customs Valuation. 
Anti-dumping, countervailing duties, safeguard regimes  
56. The representative of Oman said that at present Oman had no legislation on anti-dumping, 
countervailing duties or safeguard measures.  Th e Law on the Organization and Encouragement of 
Industry contained a provision authorizing the Govern ment to increase customs tariffs, or prohibit or 
restrict importation of goods similar to domestica lly produced goods, but this provision was dormant 
and would not be used as a safeguard measure. 
57. He confirmed that Oman had no official or  ministerial discretion to impose anti-dumping, 
countervailing duties or safeguard measures.  Om an would not introduce laws in these areas prior 
accession to the WTO.  At the appropriate time and prior to enactment, Oman would submit the 
proposed legislation, to be drafted in strict c onformity with the provisions of the relevant WTO 
Agreements, to the WTO.  The Law on the Orga nization and Encouragement of Industry would be 
amended to bring it into conformity with WTO rules prior to Oman's accession to the WTO.  According to a preliminary determination, Clause 4 of Article 19 of the Law would be deleted, and 
other aspects of the Law were being examined. 
58. A member sought a commitment from Oman not to apply anti-dumping, countervailing duties 
and safeguard measures until existing legislation had been amended to the extent necessary to bring it 
into conformity with WTO requirements, new legislation in full conformity with these requirements 
had been introduced, and, with such legislation in place, Oman should apply these measures in full 
conformity with WTO requirements. WT/ACC/SPEC/OMN/6 
Page 16  
 
59. The representative of Oman said that  Oman would not apply any anti-dumping, 
countervailing or safeguard measure until it had implemented appropriate laws in conformity with the 
provisions of the WTO Agreements on the Impl ementation of Article VI, on Subsidies and 
Countervailing Measures and on Safeguards.  In th e elaboration of any legislation concerning anti-
dumping duties, countervailing duties and safeguards, Oman would ensure their full conformity with 
the relevant WTO provisions, including Article VI  and XIX of the GATT 1994 and the Agreement on 
the Implementation of Article VI, the Agreemen t on Subsidies and Countervailing Measures and the 
Agreement on Safeguards.  After such legislati on was implemented, Oman would only apply any 
antidumping duties, countervailing duties and safeguard measures in full conformity with the relevant 
WTO provisions.  [The Working Party took note of these commitments.] 
B. EXPORT REGULATIONS 
Customs tariffs, fees and charges for services rende red, application of internal taxes to exports
 
60. The representative of Oman said that Oman a pplied no export duties, including on petroleum.  
The quay handling and other charges levied by the Port Services Corporation for services rendered are 
enumerated in Table 1 (see Annex). 
Export restrictions  
61. The representative of Oman said that exports  of antiques, ancient manuscripts, Marie Teresa 
Riyals, and date seedlings were pr ohibited.  Export restrictions applied to three species of fish - 
lobster, abalone and shark - during the breeding and reproduction season, at which time no fishing 
was allowed.  Scientific studies and research had in dicated a considerable decline in the stocks of 
lobster and abalone in recent years. Lobster, abal one and shark were thus rare species in danger of 
over-exploitation in Omani waters, and the fishing se ason was accordingly restricted.  Permission to 
export these species during the restricted period coul d be obtained from the Ministry of Agriculture 
and Fisheries provided the exporter was a registered  Omani company performing fish trade and export 
activity, holding a licence from the competent authority ;  exportable fish had been caught before the 
end of the stipulated fishing season;  and the expo rted fish would comply with specifications and 
conditions determined by the Ministry.  The same rule applied to domestic sales of lobster and 
abalone.  No limit was set on the exported quantity.  The prohibition on exports of date seedlings had 
been established to preserve rare local species and varieties. 
62. He added that certain textile and clothing ite ms were subject to voluntary export restraints 
under bilateral agreements with the United Stat es and Canada.  There were no export licensing 
requirements and procedures.  WT/ACC/SPEC/OMN/6 
 Page 17 
 
 
63. A member sought elimination of Oman's current  export restrictions on date seedlings and fish 
species.  Any measures necessary to regulate trade in these items should be consistent with WTO 
provisions.  The representative of Oman replied that  Oman would not use any export prohibitions or 
export quotas inconsistent with WTO rules. 
Export subsidies  
64. The representative of Oman said that the Export Guarantee and Financing Unit (EGFU) of the 
Oman Development Bank insured exporters agains t commercial and political risks.  EGFU also 
provided export finance and assisted manufacturers th rough an interest subsidy scheme in accordance 
with a Memorandum of Understanding with comme rcial banks.  At the end of each month the 
financing bank made a claim for the appropriate subsidy which w as credited to the customer's 
account.  Major Omani commercial banks granted all credit-insured exporters post-shipment advance 
at a concessional rate of 7 per cent per annum by discounting their export bills (for a period not 
exceeding 180 days).  The main criterion for obtai ning export financing support from EGFU was a 
25 per cent value-added requirement by way of labour  costs, interest, depreciation, taxes and net 
profit in relation to the total sale value.  In additi on, the credit would need to be insured with EGFU.  
Credit insurance was provided at market rates. 
65. A member said that the advances to expor ters at concessional rates by commercial banks 
would seem to be an export subsidy within the m eaning of Article 3.1(a) of the Agreement on 
Subsidies and Countervailing Measures.  The represent ative of Oman did not share this view, nor did 
he consider the operation of EGFU to constitute an y export subsidy within the meaning of points (j) 
and (k) of the Illustrative List of Export Subsidies in Annex I of the Agreement.  He confirmed that 
Oman did not maintain subsidies which met the defi nition of a prohibited subsidy within the meaning 
of Article 3 of the Agreement on Subsidies and Countervailing Measures.  Oman maintained no 
subsidies or incentives relating to export performance. 
66. The representative of Oman said that paid import duties were refunded in full on imported 
goods re-exported in the same form.  Duty dr awback was not available for imported goods 
incorporated in other goods or transformed in some other way.  Regarding the pricing of feedstock for 
export projects, he said that de liveries were based on the principl e that feedstock should not be 
subsidized.  Thus, the full development and delivery co sts were recovered, with a margin to reflect the 
cost of capital, etc. 
67. The representative of Oman stated that from the date of accession Oman would not maintain 
any export subsidies which met a definition of a prohi bited subsidy within the meaning of Article 3 of WT/ACC/SPEC/OMN/6 
Page 18  
 
the Agreement on Subsidies and Countervailing Measu res, and would not introduce such prohibited 
subsidies from the day of accession.  [The Wo rking Party took note of this commitment.] 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
Industrial policy, including subsidies
 
68. The representative of Oman said that Oman 's industrial policy envisaged the share of 
manufacturing in GDP to rise from approximately 5 per cent at present to 15 per cent of GDP by the 
year 2020.  The Fifth Five Year Development Pl an (1996-2000) represented the first in a series of 
plans formulated and launched with a view to achieving the objectives of the Vision for Oman's 
Economy 2020.  The plan emphasized the developmen t of human resources, economic diversification 
and an expanded role for the private sector.  Th e economic policy package comprised general macro-
economic policy measures as well as sector-specific po licies at the micro-economic level.  Focus was 
directed towards capital, technology and know ledge intensive industries with emphasis on 
internationally competitive export-oriented industr ies.  Investment incentives provided by the 
Government included free industrial investment surv eys and soft loans and grants for pre-feasibility 
studies;  soft loans;  and duty exemptions on im ported machinery, equipment, spare parts and raw 
materials.  Plots in fully-serviced industrial estat es could be rented at nominal rates, and reliable 
supplies of power, water, natural gas and sewage treatment were available at reduced rates.   
69. Ministerial Decision No. 49/91, under whic h support had been provided to industry and 
tourism, had been replaced by Royal Decree No . 17/97.  The Government provided soft loans to 
projects in industry, tourism, agriculture, fisher ies, health, education and handicrafts.  Loans 
exceeding RO 250,000 were granted on the condition that the workforce be minimum 25 per cent Omani, and the share of foreign ownership could not exceed 49 per cent in projects with investment costs exceeding RO 250,000.  Loans could equal up to 150 per cent of the equity for projects located 
in the Muscat Governatorate, and 250 per cent elsewhere;  the maximum loan amounted to 
RO 500,000, or RO 5 million for public joint-stock companies having offered at least 40 per cent of 
their equity to the public.  Interest-free government loans were no longer available.  In response to a 
specific question, the representative of Oman said  that his Government was not providing any support 
to proposed large projects, including the Sohar Al uminium Smelter, a petrochemical joint venture, a 
fertilizer plant, and a possible new sugar factory. 
70. The Oman Development Bank (51 per cent government-owned) provided soft loans to 
agricultural, industrial and services projects in acco rdance with Royal Decree No.17/97.  The soft 
loans were made available to all industries and en terprises on the basis of objective, published criteria, 
and were not sector- or enterprise-specific.  WT/ACC/SPEC/OMN/6 
 Page 19 
 
 
71. A special fund (Venture Capital Fund) would be established to provide capital and soft loans 
to small and medium sized enterprises.  There were no export performance or domestic content 
conditions attached to this financing.  The Govern ment also intended to establish a Business Centre 
providing services to small and medium sized enterprises.   
72. The representative of Oman stated that Oman maintained no subsidies within the meaning of 
Article 1 of the Agreement on Subsidies and C ountervailing Measures for natural gas projects, 
petroleum and petrochemical sectors, or for the development of sectors dependent on gas as a major 
input.  Similarly, there were no subsidies for export- oriented or import substitution industries.  He did 
not consider the preferential rates of income tax for certain businesses a speci fic subsidy within the 
meaning of Article 2.1(a) of the Agreement. 
73. The representative of Oman confirmed that Oman would not implement the Fifth Five Year 
Development Plan (1996-2000) using export subsidi es prohibited by the Agreement on Subsidies and 
Countervailing Measures.  He further confirmed that  prohibited export subsidies would not be granted 
under the long-term finance plan or the venture capital fund. 
Technical barriers to trade, sanitary and phytosanitary measures  
Standards and certification  
74. A member noted that Oman’s present regulat ory system was not consistent with WTO TBT 
requirements.  In particular, Oman’s legal and ad ministrative provisions did not adequately address 
fundamental obligations such as transparency, n on-discrimination and national treatment, and the 
prohibition against unnecessary barriers to trade.  In th e area of transparency, Oman did not formally 
publish a public notice that draft standards, technical  regulations or conform ity assessment procedures 
were being considered, Oman did not appear to pr ovide proper opportunity for all parties to comment 
on draft procedures, and final standards were not published promptly.  Omani administrative decrees 
did not appear to address explicitly the fundamental  obligations of non-discrimination and national 
treatment for imported products, and it was not clea r how Oman ensured that its standards-related 
measures were no more trade-restrictive than nece ssary.  This member looked forward to working 
with Oman in developing the necessary impl ementation procedures for the Agreement. 
75. The representative of Oman said that GCC c ountries developed joint standards which as such 
were considered Omani standards.  In areas w ith no GCC standards, Oman would adopt national 
standards based on international standards, except where these were found unsuitable due to climatic 
or cultural conditions.  The Directorate General fo r Specifications and Measurements (DGSM) within 
the Ministry of Commerce and Industry was responsib le for the formulation, adoption, publication WT/ACC/SPEC/OMN/6 
Page 20  
 
and dissemination of standards in Oman.  DGSM w as the only National Standards Body in Oman.  
DGSM, which was a correspondent member of the ISO, was also responsible for testing and 
certification of conformity with existing standards.  More than 1,000 standards had been issued by 
September 1998.  Omani standards c overed foodstuffs, chemical products , building materials, textiles, 
electrical and electronic products, mechanical a nd metallic products, motor vehicles and industrial 
safety and health regulations.  Draft standards were  circulated to all concerned parties for comment 
prior to finalization.  Normally, no less than one year elapsed between the publication of a draft 
standard and the issuance of a final standard a nd the corresponding Ministerial Decree.  However, 
with regard to the Code of Good Practice, exis ting procedures for the preparation, adoption and 
application of standards were wholly or partly different from the procedures laid down in Annex 3, 
paragraphs J, K, L, M and O of the Agreement on Technical Barriers to Trade.  Omani standards were 
not published promptly, the DGSM did not publish a work programme once every six months, and a 
notice inviting comments on draft standards was not pub lished.  However, these deficiencies would be 
removed with Oman's implementation of the Agreement on Technical Barriers to Trade. 
76. The representative of Oman submitted an ac tion plan for implementing the TBT Agreement 
to the Working Party, circulated in documen t WT/ACC/OMN/12.  According to the plan, a 
Ministerial Decree implementing the provisions of the TBT Agreement is to be issued by the end of September 1999.  An Enquiry Point had been  established within DGSM [by March 1999]. 
77. Accepting test results and conformity assessments managed by accredited laboratories, Oman 
followed ISO/IEC Guides 23, 28 and 38.  The DGSM accepted third-party certification systems for 
products according to the principles and rules of  ISO/IEC Guides Nos. 16-1978(E) and 28-1982(E), 
and manufactures' declaration of conformity according to ISO/IEC Guide 22-1982(E).  The DGSM planned to introduce Omani Quality Marks, as an  indication of product quality and safety and 
compliance with Omani standards.  Regulations fo r Omani Quality Marks had not yet been issued.  
Omani Quality Marks could be awarded to manufact urers in foreign countries on the same terms and 
conditions as those applied to local producers, in cluding payment for testing and inspection.  In 
selecting the "competent body" in the manufacturer's country of origin, the DGSM would follow ISO/IEC Guide 39 – General requirements for the accep tance of inspection bodies.  The activities of 
the competent body would be overseen by DGSM, and it would have to abide by the same standards 
and testing procedures as those followed by DGSM in Oman. 
78. The representative of Oman confirmed that  Oman would follow the requirements and 
procedures of Article 5 of the Agreement on Techni cal Barriers to Trade in authorizing imports of 
telecommunications equipment.  Medicines and medical  equipment were regulated by the Ministry of 
Health.  A certificate from the Ministry was require d to sell such products in the Sultanate of Oman.  WT/ACC/SPEC/OMN/6 
 Page 21 
 
 
79. The representative of Oman confirmed that Om an would apply all oblig ations under the WTO 
Agreement on Technical Barriers to Trade from the date of accession without recourse to any 
transition period. 
Sanitary and phytosanitary measures  
80. The representative of Oman said that the Sulta nate was an active member of the FAO, the 
WHO and Office International des Epizooties (OIE ).  Oman applied sanitary and phytosanitary 
measures based on scientific principles to plan ts, foodstuff, animals and animal products.  All 
consignments of livestock, animal products, fish, ve terinary drugs and animal feed were subject to 
veterinary inspection and quarantine.  Imports we re subject to examination by inspectors from the 
Ministry of Agriculture (crop protection department or quarantine section), while municipal officials were responsible for the inspection of domestic products.  Where no specific standards existed, 
imported food products would be subject to safety t ests with respect to veterinary drugs and pesticide 
residues, food additives, levels of radio-nuclide, micro-biological testing, and labelling.  Labelling 
requirements for pre-packaged foods had been established in accordance with Omani Standard 
No. 58/1984.  All prepared, pre-packaged foodstu ffs were subject to labelling requirements according 
to GCC Standard for Labelling of Pre-packaged Foods. 
81. Some members were concerne d about the implementation of GCC Standards for Labelling of 
Pre-Packaged Foods (GS-150/1993), in particular with  regard to shelf-life requirements which did not 
appear to be based on scientific evidence.  In  their view, these requirements imposed unreasonable 
import barriers for table eggs, stained baby food, c ookies, canned soup, peanut butter and certain fruit 
juices.  The representative of Oman replied that the shelf-life standards were scientifically based, 
taking into account the conditions in Oman regard ing climate, transportation, storage and handling 
methods.  A detailed explanation of the basis for the shelf-life requirements was provided in document WT/ACC/OMN/14, pp.23-24.  Inspections to verify compliance with the requirements 
were expeditious and at no cost. 
82. The representative of Oman said that Oman w ould apply the Agreement on the Application of 
Sanitary and Phytosanitary Measures from the da te of accession without recourse to any transition 
period.  Oman would submit an action plan for im plementation of the SPS Agreement to the Working 
Party.  In reviewing its legislation, Oman w ould address specific aspects of the SPS Agreement, 
notably with respect to its discip lines in the areas of transparency, MFN treatment, national treatment 
and the appropriate use of international standards. WT/ACC/SPEC/OMN/6 
Page 22  
 
Trade-related investment measures
 
83. The representative of Oman said that Oman applied no trade-related investment measures. 
84. The representative of Oman said that Oman would not maintain any measures inconsistent 
with the TRIMs Agreement and would apply th e TRIMs Agreement from the date of accession 
without recourse to any transition period.  [The  Working Party took note of this commitment.] 
State-trading entities  
85. The representative of Oman provided detailed in formation on the Public Authority for Stores 
and Food Reserves in document WT/ACC/OMN/5/A dd.2 and on Petroleum Development Oman and 
the Oman Refinery Company in document WT/A CC/OMN/6/Add.1, Annex 6, without prejudice to 
Oman's position regarding the status of these enterpri ses.  He stated that the Public Authority for 
Marketing Agricultural Produce (PAMAP) and the P ublic Authority for Stores and Food Reserves 
were State-owned enterprises engaging in impor tation and exportation.  However, these two 
enterprises had not been granted any exclusive or special rights or privileges and therefore did not 
meet the definition of State-trading enterprises of GATT Article XVII and the Understanding on the 
Interpretation of Article XVII of the GATT 1994. The companies competed on equal terms with 
private importers and exporters and conducted their business in accord ance with commercial 
considerations. 
86. He added that his Government intended to privatize PAMAP in 1999, and as such it would no 
longer be a Public Authority with rights and privileges, but a normal commercial company.  The 
Public Authority for Stores and Food Reserves conducted purchases and sales in connection with the 
stocking of strategic food reserves of rice, sugar, tea, milk powder and edible oils.  The Authority 
imported only rice, on the basis of open tender and in competition with private importers.  The 
Authority was self-financed, but received a modest  grant from the Government for storage space, 
costs and establishment expenses.  
87. Crude oil and its derivatives were wholly-o wned by the Government.  As operator in the 
production of crude oil and natural gas, Petroleu m Development Oman (PDO) exported crude oil on 
behalf of the Government.  Processing into re fined products was undertaken by Oman Refinery 
Company (ORC).  The only product exported by ORC was long residue (fuel oil).  ORC was a 
Government Commercial Limited Liability Company and the Government held a 60 per cent stake in 
PDO.  WT/ACC/SPEC/OMN/6 
 Page 23 
 
 
88. A member sought a statement from Oman regarding the status of PAMAP, and Oman's 
agreement that PAMAP be notified as a State-trading enterprise if PAMAP continued to operate at the 
time of conclusion of Oman's accession negotiations.  In reply, the representative of Oman confirmed 
that, in the highly unlikely event that PAMAP remain  in operation when Oman joins the WTO, Oman 
will notify it as a State trading enterprise.  He al so confirmed that Oman will eliminate any trade 
restrictions or other measures inconsis tent with the WTO managed by PAMAP. 
Free zones, special economic areas  
89. The representative of Oman said that the Sulta nate had no free zones or free economic zones, 
and had no intention to establish any such zones. 
Government procurement  
90. The representative of Oman said that the main legal instruments relating to government 
procurement were the Governme nt Tender Regulations issued by Royal Decree No. 86/84 of 
28 October 1984, and the Unified Rules Granting Preferences in Government Purchases to the 
National Products and the Products of GCC Origin  (Ministerial Decision No. 18/87).  Public 
tendering was required for all purchases exceeding RO 10,000 by Ministries, Government 
Departments and Agencies, Public Corporations, an d companies in which the Government held not 
less than 51 per cent of the shares (except by Minist ry of Defence and Defence Forces).  Government 
procurement was supervised by a high-level Tender Board, an independent authority not attached to 
any Ministry or Department.  The Board announ ced, processed and awarded all contracts worth 
RO 250,000 or more.  The Tender Board was assisted by various tender committees.  Contracts for 
government purchases of less than RO 250,000 were announced, examined and awarded by internal 
tender committees within Ministries.  Local government  agencies fell within the jurisdiction of the 
Tender Board, while State enterprises and utilities - except for electricity, water and transportation 
enterprises - had their own procedures and tender co mmittees.  Oman did not collect statistics on 
government procurement.   
91. He recalled that four categories of tender pr ocedures had been established;  limited tenders, 
local tenders, international tenders  and general tenders.  Limited te nders were applied for goods or 
works of highly specialized nature, and were open to participation by companies pre-qualified by the 
concerned Ministry or Department.  Important pre-selection criteria were past performance and 
experience, competent staff, and the financial sta nding of the company.  Local tenders were open to 
bidders and companies enrolled in the Commercia l Register and listed by the Tender Board.  
International tenders were subject to world-wide bidding.  Successful bidders were required to enrol 
in the Commercial Register within one month of th e award of the contract.  General tenders were WT/ACC/SPEC/OMN/6 
Page 24  
 
announced with the objective of soliciting the best offer, and could be advertised nationally or 
internationally.  Rules required tender notices to be published in local newspapers and in the Official 
Gazette, and they were also announced on radio a nd television.  Tender opp ortunities were published 
in Arabic and English.  Contract award notices were not published.  Procedures for appeal were 
specified in the Tender Law and regulations. 
92. The representative of Oman said that various methods were used in the evaluation of bids, 
and price was not the only criterion.  Royal Decree No. 64/84 and the Unified Rules required 
preference to be given to products of Omani orig in.  The preference margin amounted to 10 per cent 
compared to the price of similar foreign products.  If products of Omani origin were unavailable, or 
did not conform to technical specifications, products  of GCC origin would be preferred to foreign 
products.  In this case, the preference margin amounted to 5 per cent. 
93. Referring to on-going work in the WTO to identify elements of discipline to ensure 
transparency in government procurement, some members asked Oman to explain how it ensured the 
transparency of procedures and government proc urement practices such as the publication of 
opportunities and procedures for participation in proc urement, qualification of suppliers, conditions to 
gain contracts and the procedures enabling suppliers  to challenge the Government's decision.  A 
member sought Oman's accession to the Agreement on Government Procurement and encouraged Oman to present an initial offer for an entity list w ithin three months of accession to the WTO.  In 
reply, the representative of Oman said that Oman  saw no advantage in joining the Agreement.  
However, Oman would participate in the working group on transparency in government procurement 
procedures, and would join any multilateral arrangement agreed to by WTO Members. 
Transit
 
94. The representative of Oman said that transit of  goods through the territory of the Sultanate of 
Oman was allowed without any discrimination as to the origin of the goods.  However, customs had 
the right to inspect goods to ensure that arms, ammunition and narcotics would not be transported 
through Oman.  Goods in transit were not subject to any duty. 
Agricultural policies  
[Information on domestic support and export subs idies in agriculture circulated in document 
WT/ACC/SPEC/OMN/2 of 25 September 1997.]  
[95. The representative of Oman said that his G overnment encouraged the agricultural sector by 
providing infrastructure facilities such as irrigation and agricultural extension services.  Extension  WT/ACC/SPEC/OMN/6 
 Page 25 
 
 
services were only for experimental and demonstration purposes, and commodities produced under 
such programmes were not marketed commerciall y.  The Government undertook pest and disease 
control measures, including aerial spraying and plant quarantine.  The Ministry of Agriculture offered 
guidance and consultancy services to the private sect or, and aimed at enhanc ing product quality and 
modernizing agricultural research and extension ser vices.  The Government provided technical and 
economic feasibility studies for agro-industry, poultr y, date processing and other projects.  No 
subsidies were granted to farmers, but the Govern ment supported the introduction of innovations in all 
aspects of agricultural work.  Select ed farms, receiving inputs such as new seed varieties, fertilizers 
and chemicals free of charge, served as examples fo r other farmers to improve crop production.  
Oman did not provide specific export subsidies on agricultural products.  As with other sectors, 
agriculture was eligible for expor t insurance and export financing through the Export Guarantee and 
Financing Unit (EGFU). 
96. The representative of Oman confirmed that Oman did not use "amber box" policies in support 
of agriculture and that domestic agri cultural support would be bound at a de minimis  level. 
97. The representative of Oman confirmed that  Oman will eliminate all import bans and 
quantitative restrictions on agricultural products (such as on eggs, milk, fruit and vegetables) upon 
accession, in accordance with the provisions of th e Agricultural Agreement, and replace them, as 
necessary, only with WTO-consistent requirements.] 
[to be completed] 
Trade in civil aircraft  
98. Asked by a member whether Oman would a dhere to the WTO Agreement on Trade in Civil 
Aircraft from the date of accession, the representativ e of Oman said that the Sultanate of Oman had 
no such intentions. 
TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
99. The representative of Oman said that his Government was determined to protect intellectual 
property rights within its jurisdiction and meet its in ternational obligations.  Oman became member of 
the World Intellectual Property Organization in Febr uary 1997.  Oman had ratified its accession to the 
Paris and Berne Conventions in September 1998 (by Royal Decree No. 63/98).  The Ministry of 
Commerce and Industry was responsible for policy formulation and implementation in respect of 
trademarks, patents and copyrights and related rights.  The Ministry  cooperated with other relevant 
Ministries such as the Ministry of the National Heritage and Culture and the Ministry of Information WT/ACC/SPEC/OMN/6 
Page 26  
 
in the implementation of copyright legislati on.  Oman extended national treatment and MFN 
treatment to foreign nationals in these areas.  The Copyright Law would be suitably amended to 
provide national treatment to foreign works.  Oman did not grant preferential treatment to any country 
in the area of intellectual property.  F ees were charged equally for equal work. 
100. The representative of Oman said that copyri ght and related rights we re protected under the 
Law for the Protection of Copyrights, issued by Royal Decree No. 47/96.  The Copyright Law 
provided the rights for financial utilisation of the material up to 50 years after the death of the author.  
The period was also applicable to joint author ship material.  For films, applied art works, 
photographs, publication under pseudonym and compila tions by juristic persons the copyright 
protection period ended 25 years after the first date  of publication.  Article 8 of the Law would be 
revised to extend the term of protection for copyri ghted works owned by legal entities to 50 years.  
Article 2 of the Law covered protection of the rights of performers, producers of phonograms and 
broadcasting organizations, but the Law would be  suitably amended for this purpose.  Sound 
recordings, data base compilations and computer programs were protected as literary works.  The Law contained no provision on compulsory licensing.  In th e public interest and against fair compensation, 
the Government could decide or publish a compilation not published by the heirs or successors of the 
author within six months following an official request.  The Law contained a general provision on 
rental rights, but no detailed provision on rental rights for computer programs and cinematographic 
works.  A Copyright Office was under establishmen t in the Ministry of Commerce and Industry. 
101. The representative of Oman said that work to  amend the Copyright Law would be completed 
by June 1999.  Revisions included inter alia  providing a period of protection of 50 years for films, 
and radio and television broadcasts. 
102. The Trademarks Law of 1987 governed the re gistration and protection of trademarks.  The 
owner of a trademark applied to the Ministry of Commerce and Industry for registration.  The period 
of protection was ten years, and a registration co uld be renewed indefinitely.  Registration was 
sufficient to notify potential infringers of the owner's exclusive right.  The Law contained no 
provision protecting well-known marks, but its Ar ticle 2 would be amended to provide such 
protection.  In the interim, a well-known mark was refused registration if another party wanted to 
register the same mark in its name, and the owne r of a well-known mark could stop the use of such a 
mark by an infringing person pursuant to Articles 31 to 34 of the Trademarks Law.  The owner of a well-known mark could prevent the entry into Om an of infringing goods provided the mark was 
registered in Oman.  The Trademarks Law would be  amended to provide for civil remedies against 
infringement and counterfeit use to owners of unr egistered well-known marks.   A registration could 
be cancelled for trademarks not used for five c onsecutive years, unless the trademark owner submitted  WT/ACC/SPEC/OMN/6 
 Page 27 
 
 
a justification, such as reasons beyond his control, for not using it.  The application for registration of 
a trademark cost RO 25.  The owner of a registered trademark had the sole right to produce, import or 
distribute the trade-marked goods and the right to prevent any other person from using the trade mark 
without permission.  The holder had the right to assign or licence a trademark;  such assignment would need to be recorded.  Amendments to the Trademarks Law to bring the Law into full 
conformity with the TRIPS Agreement would be promulgated by June 1999. 
103. The representative of Oman said that Oman par ticipated in the Unified Patent System of the 
Gulf Cooperation Council.  The GCC Secretariat w as examining the conformity of the GCC patent 
regulations with the provisions of the TRIPS Agreem ent in consultation with WIPO and WTO.  Oman 
intended to adopt the GCC Unified Patent System as th e patent law of Oman by Ministerial Decree, to 
be issued by (end) June 1999.  A joint Patent Offi ce of the GCC countries would be located in Riyadh 
(Saudi Arabia).  [Oman would consider the establishm ent of a patent confirmation system to assist the 
development of TRIPS-consistent patent protection in Oman.]  Pa tentability would be extended to 
new inventions and innovative ideas that could be manufactured and were not contradictory to the 
provisions of Islamic Law or the rules of conduct.   Excluded from patent ability were discoveries, 
scientific theories, mathematical methods, and com puter programs;  schemes, rules and methods for 
doing business, performing purely mental acts, or pl aying games;  varieties of plants, species of 
animals, or biological processes used to pr oduce plants or animals with the exception of 
microbiological processes and the products thereof;  a nd methods of surgical or therapeutic treatment 
or diagnosis applied to human or animal body with the exception of products used in any of these 
methods.  Patent protection to pharmaceutical produc ts, agricultural chemicals and other inventions 
would be provided in accordance with Ar ticle 2 of the GCC Patent Regulations. 
104. The terms of a patent would be valid for 15 y ears from the date of grant.  The validity could 
be extended for an additional five years upon request w ithin the last 90 days of the original term.  The 
decision of the Patent Office could be appealed to the GCC Committee on Unified Patent System.  
Normally, a patent would need to be exploited on a sufficient industrial scale in the GCC States 
within two years from the date of grant.  Importation could meet the working requirement for an interim period.  After the lapse of two years, the Board of the GCC Bureau of Patents could grant a 
compulsory licence for an unworked patented invent ion provided the applicant could prove his ability 
to use the invention industrially, and against fair  compensation to be paid for the patent.  The 
Government could also authorize one of its agencies, in the public interest and against payment of fair 
compensation, to exploit a patent without the consen t of the patent owner, subject to approval by the 
Board of the GCC Bureau of Patents.  Such a d ecision could be appealed.  The patent owner could 
only assign or transfer a patent right to a third pa rty in conjunction with all the elements of the 
business.  A licence to perform all or some of the act s of exploitation of a patent should be made in WT/ACC/SPEC/OMN/6 
Page 28  
 
writing, signed by both parties, approved by the official authority in a GCC country and registered in 
the Patent Office against payment of the prescribed fee. 
105. The representative of Oman noted that Oman had no laws or regulati ons on the protection of 
geographical indications or appe llations of origin, industrial d esigns, plant varieties and layout-
designs of integrated circuits.  Geographical indi cations would be protected through an amendment to 
the Trademarks Law, which Oman would ensure by  June 1999.  A law on industrial designs in 
conformity with the provisions of the TRIPS Agreem ent would also be promul gated by June 1999.  A 
draft law on layout-designs (topographies) of integrat ed circuits was in preparation in consultation 
with WIPO, and would be promulga ted by December 1999.  Undisclosed information, including trade 
secrets and test data, would be protected in acco rdance with a new law to be promulgated by 
September 1999.  A new law would also be promul gated by September 1999 to control the abuse of 
anti-competitive practices. 
106. Regarding enforcement, the representative of  Oman said that copyright violations were 
punishable by imprisonment up to two years and/or a fine not exceeding RO 2,000, but the Copyright Law and other Omani legislation contained no de tailed provisions on enforcement.  Intellectual 
property owners could initiate complaints of infringe ment directly with judicial authorities according 
to Articles 18 and 32 of the Trademarks Law and Article 15 of the Copyright Law.  The courts could order confiscation of pirated copies and materials as well as closure of the premises of the offenders.  
Violation of a trademark was punishable by imprisonment up to three years or a fine not exceeding 
RO 500.  The Registrar had no role in infringement actions.  Goods in violation of a trade mark could 
be confiscated and destroyed, and preventive measures against importation and distribution of such goods were laid down in the Tradem arks Law (Articles 32-34).  Civil judicial procedures were not 
elaborated in detail in the intellectual property la ws of Oman.  Aggrieved parties in intellectual 
property right disputes had recourse to the Commercial Court.  At present, judicial authorities did not 
have the authority to impose provisional measures .  He confirmed that Customs had the legal 
authority to detain and/or seize suspect goods at ports of entry, suspend the release of imported 
counterfeit and pirated goods and c onfiscate and destroy infringing goods. 
107. The representative of Oman said that amendmen ts to the Customs Law and to the Civil and 
Criminal Codes in line with Articles 41 to 61 of the TRIPS Agreement would be promulgated by end 
2001.  The training of staff responsible for admini stration and enforcement of intellectual property 
legislation would take place in 1999 and 2000.  Full implementa tion of Part III of the TRIPS 
Agreement would be ensured by end 2002.  WT/ACC/SPEC/OMN/6 
 Page 29 
 
 
108. An overview of Oman's intellectual property legislation, ongoing work and planned activities 
was provided to the Working Party in document WT /ACC/OMN/11, and is reproduced in Table 3.  
Having reviewed this document, some members expr essed reservations against the timetable proposed 
by Oman for implementation of the TRIPS Agreem ent.  In their view, compliance with TRIPS 
obligations from the date of accession, without a tr ansition period, was both possible and desirable. 
POLICIES AFFECTING TRADE IN SERVICES 
[Initial commitments on trade in services circulated in document WT/ACC/SPEC/OMN/4 of 
24 October 1997;  additional information c oncerning the offer circulated in document 
WT/ACC/SPEC/OMN/4/Add.1 on 25 March 1998.  Oman provided information on policy measures 
affecting trade in services in March 1998 (document WT/ACC/OMN/8)] 
109. The representative of Oman said that the Ministry of Commerce was responsible for matters 
related to most business services and professional services, insurance, tourism and travel and 
engineering and had jurisdiction over matters rela ting to commercial presence and foreign investment 
in services enterprises.  Other institutions with r esponsibilities related to services included the Central 
Bank of Oman and the Ministry of Finance (financia l services), the Ministry of Posts, Telegraphs and 
Telephones (telecommunication services), the Ministry of Communications (civil aviation and land 
and sea transportation), the Ministry of Health (medical services), the Ministry of Education (educational services) and the Ministry of Social Af fairs and Labour (movement of natural persons).  
Major legislation in the services area included th e Banking Law, the Insurance Law, the Law on 
Organization of Engineering Consultancy Offices and the Commercial Agency Law.  
110. Oman maintained no restrictions on interna tional transfers and payments for current services-
related transactions, or capital receipts or paymen ts by residents and non-residents, and had not 
established any special aids, grants, subsidies, tax incentives or promotion schemes directly affecting trade in services.  No specific safeguard measures applied to trade in services.  There were no 
limitations on the number of foreign service supplie rs, on the total value of service transactions or 
assets, or on the total number of service operations  or total quantity of service output, except for 
services sectors reserved for the State.  The Governme nt was the exclusive supplier of air transport, 
television and radio, postal services, basic telecomm unications and public util ities such as water and 
electricity. 
111. Oman maintained no restrictions on cross- border supply and consumption abroad, but all 
business services were subject to limitations on commercial presence (maximum 65 per cent foreign ownership) and movement of natu ral persons.  MFN treatment applied to services providers from all 
countries, except for GCC companies, which were treated on par with Omani companies.  Foreign WT/ACC/SPEC/OMN/6 
Page 30  
 
workers obtained work permits from the Ministry of Social Affairs, Labour and Vocational Training.  
The Labour Law of 1973 stipulated that priority be given to Omani labour in employment.  The 
Ministry  had set targets for Omanization to be ach ieved in certain services sectors by the end of 1997, 
notably in banking (85 per cent);  transportation, storage and communication (60 per cent);  finance, 
insurance and real estate (45 per cent);  hotels and restaurants (30 per cent);  wholesale and retail trade (20 per cent);  and construction services (15 per cent).  Work permits for foreign nationals were issued 
to companies making satisfactory pr ogress in achieving the required targets.  A foreign worker also 
needed to obtain a residence permit from the Royal Oman Police.  
112. The Central Bank of Oman had imposed c onditions on the opening of bank branches in its 
Circular BM/748 of 8 January 1995.  A bank could op en up to four branches in  the Governatorate of 
Muscat without restriction.  Further branches would be allowed on the condition that the bank also 
open a branch in a town with no bank or only on e bank branch.  The same conditions applied to 
Omani banks.  New insurance companies should be est ablished in the form of a joint-stock company 
with at least 51 per cent Omani ownership.  Foreig n firms could broker, deal and underwrite securities 
and manage assets provided they were licensed by  the Muscat Securities Market.  Licences were 
issued within two months upon receipt of a comple ted application.  Applications would only be 
accepted from commercial companies confining their activity to securities business.  In addition, 
conditions had been stipulated in relation to the ca pital of the company, competence and experience of 
the company's management, and its founders and th e board of directors (criminal record/bankruptcy 
proceedings).  No foreign securities firm had obtaine d a licence thus far.  Foreign firms could obtain 
seats on the stock exchange in joint-venture with Omani partners. 
113. Foreign lawyers could provide legal servi ces in Oman only by establishing a joint-venture 
company with an Omani partner.  Foreign particip ation in the venture could not exceed 49 per cent.  
A foreign lawyer could provide all types of legal services relating to practice of home country law and 
international law, but he could not appear in an Omani court. 
114. Asked whether the GCC could be considered a full-fledged free trade area in services, the 
representative of Oman said that GCC countries we re adopting and implementing some of the main 
characteristics of a Common Market.  Oman was implementing Article 8 of the Unified Economic 
Agreement of GCC countries in a progressive manner .  Steps taken thus far included allowing GCC 
citizens freedom of movement and employment in Oman (Ministerial Resolution No. 33/97 of 
5 July 1997 of the Ministry of National Economy)  and freedom of undertaking economic activity in 
the provision of health services (Ministerial Resolu tion No. 18/95 of 5 May 1995 of the Ministry of 
Health), education (Ministerial Resolution No. 24-96 of 11 February 1996 of the Ministry of 
Education), the establishment of private vocational training institutes and centres (Authority  WT/ACC/SPEC/OMN/6 
 Page 31 
 
 
Resolution No. 313/96 of 21 July 1996 of the Authority for Vocational Training), and the 
establishment of private nurseries for childre n (Ministerial Resolution No. 99/96 of 
29 September 1996 of the Ministry of Social Affa irs and Labour and Vocational Training).  Services 
sectors not yet opened included insurance, trans portation (road, maritime and air), and agency 
activities. 
[to be completed] 
Transparency  
[to be completed] TRADE AGREEMENTS 115. The representative of Oman said that Oman  maintained bilateral trade and economic 
agreements with many Arab and non-Arab countri es.  These agreements were of general goodwill 
nature, based on MFN treatment.  Oman did not participate in the Convention for Facilitating and 
Developing Trade Exchanges Among Arab States, but  Oman had joined the decision of the Arab 
League of 19 February 1997 to establish an Arab Free Trade Area within ten years starting from 1 January 1998.  Oman was reducing its tariff vis-à-vis  other members of the Arab Free Trade Area in 
accordance with the Decision. 
116. Together with Saudi-Arabia, Bahrain, Ku wait, Qatar and the United Arab Emirates, the 
Sultanate of Oman had formed the Gulf Coope ration Council.  The GCC countries had signed a 
Unified Economic Agreement in November 1981 a nd established a free-trade area among themselves 
in 1983.  The GCC Free Trade Area Agreement had been notified to the GATT by Kuwait in 1982. 
117. Goods of GCC origin circulated free of tari ffs and other restrictions among GCC members.  
The Unified Economic Agreement encouraged join t-venture projects, and aimed at harmonized 
development plans, a common investment policy, coordinated financial and monetary policies and 
labour market integration.  Negotiations on the est ablishment of a common external tariff among GCC 
countries were well advanced, but he could not give  an indication when the negotiations would be 
completed at this stage.  Article 8 of the Agreemen t, which stipulated that member countries agree on 
rules ensuring national treatment for GCC nationa ls regarding freedom of movement, work and 
residence, right of ownership and freedom to exercise economic activity, also concerned services 
activities, but did not, in his view, constitu te a full-fledged free trade area in services. 
118. Referring to the Unified Economic Agreement between GCC countries, a member noted that 
GATT Article XXIV provided that customs unions or a free trade should be used to facilitate trade WT/ACC/SPEC/OMN/6 
Page 32  
 
between constituent territories and not to raise barrier s to the trade of the other contracting parties 
with such territories and that Article XXIV require d customs unions and free trade areas to eliminate 
duties and other restrictive regulations of  commerce on substantially all trade. 
119. The representative of Oman stated that hi s Government would observe the provisions of 
Article XXIV of the GATT 1994 and Article V of the GATS in its trade agreements, and would 
ensure that the provisions of these WTO Agreem ents for notification, consultation and other 
requirements concerning free trade areas and customs unions of which Oman was a member were met 
from the date of accession.  [The Working Party took note of these commitments.] 
[TO BE COMPLETED]  WT/ACC/SPEC/OMN/6 
 Page 33 
 
 
ANNEXES 
[to be completed] 
ANNEX 1 
Laws, Regulations and Other Inform ation Provided  to the Working Party by the Sultanate of Oman  
- Basic Components and Main Indicators of the Fifth Five-Year Plan (1996-2000);  
- Commercial Business Laws of Oman (Ministry of Commerce and Industry); - Royal Decree No. 55/90 of 18 Dhu al-Hijja 1410 A.H. (11 July 1990) Commercial Law; - Royal Decree No. 102/94 of 11 Jumada 1, 14 15 A.H. (16 October 1994) Foreign Capital 
 Investment Law; 
- Customs Management Decree of 1978 (Directorat e General of Customs, Royal Oman Police); 
- A guide to the Financial Support for the Private Sector in the Fields of Industry and Tourism  by the Directorate General of Industry, Ministry of Commerce and Industry;  - Royal Decree No. 1/79 of 4 January 1979 La w for the Organization and Encouragement of 
 Industry; 
- Royal Decree No. 39/96 of 20 October 1976 incorporating the Directorate General for  Specifications and Measurements (DGSM); - Royal Decree No. 1/78 of 3 January 1978 On the Jurisdiction of the Directorate General for  Specifications and Measurements (DGSM); - Code of Good Practice for the Preparation, Adoption and Application of Standards; 
- Royal Decree No. 74/90 of 29 September 1990 On the Calibration of Measuring Instruments; 
- List of prohibited pesticides; - Directory of Preferential Treatment to Na tional Industries - Products in Government 
 Purchases; - Royal Decree No. 47/96 of 21 Moharram, 1417 A.H. (8 June 1996) promulgating the 
 Copyright Law; 
- Royal Decree No. 86/87 of 12 Safar 1408 H. (5  October 1987) Law of Trademarks and Data; 
- Patent Regulation of the Cooperation C ouncil States (1993), Cooperation Council for the 
 Arab States of the Gulf, Secretariat General; - The Banking Law of 1974; - Royal Decree No. 12/79 of 22 Rabi al-T hani 1399 A.H. (21 March 1979) Insurance 
 Companies Law; 
- Royal Decree No. 53/88 of 6 Zu Qaida 1408 H. (21 June 1988) Law of Muscat Securities 
 Market;  and - Royal Decree No. 120/94 of 7 Rajab 1415 (1994) Law on Organization of Engineering  Consultancy Offices. WT/ACC/SPEC/OMN/6 
Page 34  
 
Table 1:  Fees and Charges for Services Rendered by the Port Services Corporation
 
(a) Quay handling and storage charges: 
(i) General cargo including bagged cargo other 
than foodstuff, medicines and animal feed. RO 1.500 per Freight Ton (Freight Ton 
will be determined by weight or 
measurement which ever is higher). 
(ii) Foodstuff, medicines and animal feed RO 1.000 per Freight Ton  
(iii) Iron and steel bars, pipes, tubes, channels, 
mesh, girders, sheets and angles RO 2.000 per Freight Ton 
(iv) Plywood, hardboard, chipboard, blockboard, 
laminated board and ot her similar laminated 
wood products in crates RO 2.000 per Freight Ton  
(v)  Loose plywood RO 3.000 per Freight Ton 
(vi)  Packed timber  RO 2.000 per Freight Ton 
(vii) Loose timber  RO 3.000 per Freight Ton  
(viii) Unpacked vehicles, mechanical equipment, 
trailers and caravans  
 - under 2.5 tons, per unit RO 10.000 
 - 2.5 tons to under 5.0 tons, per unit  RO 20.000 
 - 5 tons and over, per unit RO 25.000 
(ix)  Heavy lifts (5 tons and over, excluding 
vehicles and mechanical equipment) RO 2.000 per Freight Ton  
(x)  Bagged cement and hydrated lime RO 1.200 per Freight Ton 
(b) Demurrage (for import and export cargo); 
(i) For the first 10 days after final discharge or 
before loading - for general cargo, foodstuff, medicines, iron and steel, timber and plywood. Free 
(ii) For the first 7 days after final discharge or 
before loading - for cargo other than that in (i) above. Free 
(iii)   For 21 days after the free period:  
 - General cargo, foodstuff, medicines, 
 iron and steel, timber and plywood RO 0.300 per Freight Ton  
 - Unpacked vehicles, mechanical 
 equipment, trailers and caravans:  
  - under 5 tons, per unit RO 4.900 
  - 5 tons and over, per unit RO 9.900 
 - Bagged cement and hydrated lime RO 0.200 per Freight Ton 
(iv) After 21 days of the free period:  
 - General cargo, foodstuff, medicines 
iron  and steel, timber and plywood RO 1.200 per Freight Ton 
 - Unpacked vehicles, mechanical 
 equipment, trailers and caravans:  
   - under 5 tons, per unit  RO 15.000 
  - 5 tons and over, per unit RO 30.000 
  - Bagged cement and hydrated lime RO 1.000 per Freight Ton  
  WT/ACC/SPEC/OMN/6 
 Page 35 
 
 
Table 2:  List of Prohibited and Restricted Impor ts According to Schedule (1) of the Customs Law  
HS 
Code Description  WTO Justification 
9301 Arms and Ammunitions:  importation of arms and ammunitions shall be 
restricted to the Ministry of Defen ce and Royal Oman Police (ROP).  No 
other party shall import the said items except after obtaining the prior 
permission of the ROP. Article XX(b) of the 
GATT 1994 and XXI 
9501 Toy arms and other devices which the Inspector General of Customs 
deems easily transformable into fatal arms shall not be imported without a prior licence from the ROP and provided that they shall not be turned 
into fatal arms. Article XX(b) of the 
GATT 1994 
3601 Fireworks and Explosives containing quantities of explosive substances 
deemed dangerous by the Inspector General of Customs shall be imported only subject to the consent of the ROP. Article XX(b) and 
XXI(b)(i) of the GATT 1994 
2208 2203 Alcohol and Beer:  may be imported by the registered importers pursuant 
to the permit of the ROP Article XX(a) of the 
GATT 1994 
8526 Radio transmitting and receiving sets and wireless telegraph devices:  
may be imported after obtaining the approval of the General 
Telecommunications Organization Article XX(b) of the 
GATT 1994 and 
XXI 
4911 Pornography:  import is prohibited Article XX(a) of the 
GATT 1994 
4902 Any newspaper, pamphlet, notice, book or photography containing 
materials meant to arouse violence against the Government:  import is 
prohibited Article XXI of the 
GATT 1994 
4911 Receipts, counterfoils or any sim ilar blank or incomplete documents:  
import is prohibited Article XX(d) of the 
GATT 1994 
7118 Paper money or forged currencies:  import is prohibited Article XX(d) of the 
GATT 1994 
5907 Colour or silk fabrics or any othe r fabrics printed with imitations of paper 
money or promissory notes or securities of the Government of the 
Sultanate of Oman or any other country:  import is prohibited Article XX(d) of the 
GATT 1994 
9307 Weapons (cold steel) or other tools designed or made in a way that 
conceals their reality and the possibility  of using them or transforming 
them into knives, swords or other injurious tools:  their importation  is 
prohibited Article XXI of the 
GATT 1994 
6602 Sticks, guns (rifles) and any tool  designed in a way that conceals its 
reality:  their importation is prohibited Article XX(b), 
XX(d) and XXI of 
the GATT 1994 
1302 Any drugs or substances or articles or preparations declared harmful by 
the International Conference on Opium and Drugs:  their importation is 
prohibited Article XX(b) of the 
GATT 1994 
1302 Hemp, its leaves, flowers, seeds,  stems and any part thereof:  their 
importation is prohibited Article XX(b) of the 
GATT 1994 
1302 Raw or processed opium:  its impor tation is prohibited Article XX(b) of the 
GATT 1994 
1302 Daisy plant, its leaves , flowers, stems, seeds or any part thereof:  its 
importation is prohibited Article XX(b) of the 
GATT 1994 
Note : 
There are no overtime charges - for cargo  deliveries or receipt of export car go after the normal working hours, 
provided an advanced notice of 24 hours is given for this purpose.  
If an advance notice of 24 hours is not given then overtime is charged at the rate of RO 0.500 for the services 
of one person per hour (or part thereof) subject to a minimum of 2 hours. WT/ACC/SPEC/OMN/6 
Page 36  
 
Table 3:  Status of Legislation on In tellectual Property in Oman (September 1998)
 
 Area of TRIPS Present Position and On-going 
Programme Future Programme 
1 Trademarks Trademark Law is in place since 
1987 and is being implemented. 
Points of conformity and non-conformity of the existing law with the provisions of the TRIPS Agreement have been identified. 
Draft amended law has been 
prepared in consultation with WIPO.  It is under examination. Amendments to be Trade Marks 
Law will be promulgated by June 
1999, to bring the Law into full conformity with the provisions of the TRIPS Agreement. 
2 Copyright and related 
rights Copyright Law of Oman is in 
force since 1996 and is being implemented. Points of conformity and non-conformity of the existing law with the provisions of the TRIPS 
Agreement have been identified. 
Draft amended law has been prepared in consultation with WIPO and is under examination. Amendments to the Copyright 
Law will be promulgated by June 1999, to bring the Law into full conformity with the provisions of the TRIPS Agreement. 
3 Patents GCC Unified Patent System is 
already in place.  Oman subscribes to it. WIPO has made a study on the 
conformity of the Unified Patent 
System with the provisions of the TRIPS Agreement. Amended Unified Patent System of the GCC has been prepared, 
and has been sent to WIPO for 
comments. A meeting of GCC officials will be held in the end of September 1998 to finalize the revised 
Unified Patent System. A Ministerial Decree will be 
issued by the end of June 1999 to adopt the GCC Unified Patent System as the patent law of Oman. 
4 Geographical 
Indications There is no law at present on 
geographical indications of 
origin. 
A draft addition to the Trade Mark Law has been prepared in consultation with WIPO The revised Trademarks Law will 
include a provision on 
geographical indications.  It will be 
promulgated by June 1999. 
5 Industrial Designs. There is no law at present on 
industrial designs. A draft law prepared by WIPO is under consideration. A law on industrial designs in 
conformity with the provisions of the TRIPS Agreement will be promulgated by June 1999. 
 6 Plant Varieties There is no law at present.  A 
draft law will be prepared in consultation with the WIPO A new law on protection of plant 
varieties will be promulgated by September 1999.  WT/ACC/SPEC/OMN/6 
 Page 37 
 
 
 Area of TRIPS Present Position and On-going 
Programme Future Programme 
7 Layout Design of 
Integrated Circuits  There is no law at present. 
WIPO is being requested to suggest a draft law. Draft law to be received from 
WIPO will be examined. A new law will be promulgated by (December 1999). 
8 Trade Secrets No law at present. 
The issue is under study. A draft law will be prepared in 
consultation with WIPO. After consideration and examination of the draft law, a 
new law will be promulgated by 
September 1999. 
9 Abuse of Anti-
Competitive Practices. No law at present 
The issue is under study, in 
consultation with WIPO. A new law will be promulgated by 
September 1999. 
10 Enforcement The existing Trade Mark Law 
and the Copyright Law contain provisions on penalties for violation of the two Laws. Imprisonment up to three years and a fine not exceeding RO 500 
for violations of Trade Marks  
Law.  Also provisions to restrain the import and circulation of counterfeit goods, and for their confiscation and destruction. 
Imprisonment for two years and 
fine not exceeding RO 2000 for Copyright piracy. Enforcement action against video piracy stepped up by conducting 
raids and closing establishments. Amendments to the Civil and 
Criminal codes and to the Customs Law, in line with Articles 41 to 61 of the TRIPS Agreement will be promulgated by the end of year 2001. 
Training of staff responsible for 
administration and enforcement of IP laws will be undertaken in 1999 and 2000. Fuller implementation of Part III 
of the TRIPS Agreement will be 
ensured by the end of year 2002. 
__________