RESTRICTED  
  
JOB/ACC/TLS/4  
 
15 June  2021 
(21-4967) Page: 1/141 
Working Party on the Accession of Timor -Leste  Original: English  
 
ACCESSION OF TIMOR -LESTE  
FACTUAL SUMMARY OF POINTS RAISED  
 The attached Factual Summary of Points Raised on the Accession of Timor -Leste  to the WTO 
has been prepared by the Secretariat, based on documentation being examined in the Working 
Party.  
 
_______________  
 
 
 
 
 
 
 
 
  
 JOB/ACC/TLS/4  
 
- 2 - 
 
  TABLE OF CONTENTS  
I. INTRODUCTION  ................................ ................................ ................................ ....... 5 
 DOCUMENTATION PROVIDED  ................................ ................................ ..................  5 
 INTRODUCTORY STATEMENTS  ................................ ................................ .................  5 
II.  ECONOMIC POLICIES  ................................ ................................ ..............................  5 
- Monetary and fiscal policy  ................................ ................................ .......................  7 
- Foreign exchange and payment system  ................................ ................................ .. 9 
- Investment regime  ................................ ................................ ................................  10 
- State ownership and privatisation  ................................ ................................ .........  15 
- Pricing policy  ................................ ................................ ................................ .........  15 
- Competition policy  ................................ ................................ ................................  19 
III.  FRAMEWORK FOR MAKING AND ENFORCING POLICIES  ................................ ........  20 
- Powers of executive, legislative and judicial branches of Government  ..................  20 
- Government entities resp onsible for making and implementing policies  
affecting foreign trade  ................................ ................................ ..........................  22 
- Division of authority between central and sub -central Governments  ....................  23 
- Description of judicial, arbitral or administrative tribunal or procedures  ..............  23 
IV. POLICIES AFFECTING TRADE IN GOODS  ................................ ...............................  24 
- Trading rights, registration requirements for engaging in importing and  
  exporting  ................................ ................................ ................................ ..............  24 
- Trade facilitation  ................................ ................................ ................................ ... 26 
A. IMPORT REGULATIONS  ................................ ................................ .........................  28 
- Ordinary customs duties  ................................ ................................ .......................  28 
- Other duties and charges  ................................ ................................ ......................  28 
- Tariff quotas, tariff exemptions  ................................ ................................ .............  29 
- Fees and charges for services rendered  ................................ ................................  30 
- Quantitative import restrictions, including prohibitions, quotas and 
licensing  systems  ................................ ................................ ................................ .. 30 
- Import licensing procedures  ................................ ................................ .................  30 
- Customs valuation  ................................ ................................ ................................ . 32 
- Rules of origin  ................................ ................................ ................................ ....... 34 
- Other customs formalities  ................................ ................................ .....................  35 
- Pre-Shipment inspection  ................................ ................................ .......................  35 
- Application of internal taxes on imports  ................................ ................................  35 
- Anti-dumping regime  ................................ ................................ ............................  37 
B. EXPORT REGULATION  ................................ ................................ ...........................  37 
- Customs tariff nomenclature, types of duties, duty rates, weighted average  
 of rates ................................ ................................ ................................ ..................  37 
- Quantitative export restrictions, including prohibitions, quotas and licensing 
systems  ................................ ................................ ................................ .................  38 
- Export  subsidies  ................................ ................................ ................................ .... 38 JOB/ACC/TLS/4  
 
- 3 - 
 
  C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  ...............................  38 
- Industrial policy, including subsidy policies  ................................ ..........................  38 
- Technical barriers to trade, standards and certi fications  ................................ ....... 39 
- Sanitary and phytosanitary measures  ................................ ................................ ... 41 
- Trade -related investment measures  ................................ ................................ ...... 50 
- Free zones, special economic zones  ................................ ................................ ...... 50 
- Government procurement  ................................ ................................ .....................  51 
- Transit  ................................ ................................ ................................ ...................  54 
- Agricultural policies  ................................ ................................ ..............................  54 
(a)  Imports  ................................ ................................ ................................ .................  54 
(b)  Exports  ................................ ................................ ................................ ..................  54 
(c)  Internal Policies  ................................ ................................ ................................ .... 55 
V.  TRADE -RELATED INTELLECTUAL PROPERTY REGIME  ................................ .............  56 
1. GENERAL  ................................ ................................ ................................ ...............  56 
- Application of national and most favoured nation treatment to foreign  
nationals  ................................ ................................ ................................ ...............  57 
- Fees and taxes  ................................ ................................ ................................ ...... 58 
2.  SUBSTANTIVE STANDARDS OF PROTECTION  ................................ .........................  58 
- Copyright and related rights  ................................ ................................ .................  58 
- Trademarks, including service marks  ................................ ................................ .... 58 
- Geographical Indications, including appellations of origin  ................................ .... 58 
- Industrial designs  ................................ ................................ ................................ . 59 
- Patents  ................................ ................................ ................................ ..................  59 
- Plant variety protection  ................................ ................................ .........................  59 
- Layout designs of integrated circuits  ................................ ................................ .... 59 
- Requirements on undisclosed information, including trade secrets and test  
data ................................ ................................ ................................ .......................  59 
3.  MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS  ................  59 
4.  ENFORCEMENT  ................................ ................................ ................................ ...... 60 
- Civil judicial procedures and remedies  ................................ ................................ .. 61 
- Any administrative procedures and remedies ................................ ........................  61 
- Provisional measures  ................................ ................................ ............................  61 
- Any special border measures  ................................ ................................ ................  61 
- Criminal procedures  ................................ ................................ ..............................  62 
VI. POLICIES AFFECTING TRADE IN SERVICES  ................................ ...........................  63 
VII.  TRANSPARENCY  ................................ ................................ ................................ .... 67 
- Publication of information on trade  ................................ ................................ ....... 67 
- Notifications  ................................ ................................ ................................ ..........  67 
VIII.  TRADE AGREEMENTS  ................................ ................................ .............................  67 
CONCLUSIONS  ................................ ................................ ................................ ...............  68 
ANNEX 1  ................................ ................................ ................................ ........................  69 JOB/ACC/TLS/4  
 
- 4 - 
 
  ANNEX 2( A) ................................ ................................ ................................ ...................  75 
ANNEX 2( B) ................................ ................................ ................................ ...................  76 
ANNEX 2(C)  ................................ ................................ ................................ ...................  77 
ANNEX 3  ................................ ................................ ................................ ........................  79 
ANNEX 4  ................................ ................................ ................................ ........................  80 
ANNEX 5  ................................ ................................ ................................ ........................  81 
ANNEX 6  ................................ ................................ ................................ ........................  82 
ANNEX 7(A)  ................................ ................................ ................................ ...................  83 
ANNEX 7(B)  ................................ ................................ ................................ ...................  87 
ANNEX 7(C)  ................................ ................................ ................................ ...................  91 
ANNEX 8  ................................ ................................ ................................ ........................  94 
ANNEX 9  ................................ ................................ ................................ ........................  95 
ANNEX 10 ................................ ................................ ................................ .......................  97 
ANNEX 11 ................................ ................................ ................................ .......................  99 
ANNEX 12 ................................ ................................ ................................ .....................  107  
ANNEX 13 ................................ ................................ ................................ .....................  108  
ANNEX 14 ................................ ................................ ................................ .....................  110  
ANNEX 15 ................................ ................................ ................................ .....................  111  
ANNEX 16 ................................ ................................ ................................ .....................  112  
ANNEX 17 ................................ ................................ ................................ .....................  116  
ANNEX 18 ................................ ................................ ................................ .....................  119  
ANNEX 19 ................................ ................................ ................................ .....................  123  
ANNEX 20 ................................ ................................ ................................ .....................  124  
ANNEX 21 ................................ ................................ ................................ .....................  139  
ANNEX 22 ................................ ................................ ................................ .....................  140  
ANNEX 23 ................................ ................................ ................................ .....................  141  
 
 
 
  JOB/ACC/TLS/4  
 
- 5 - 
 
  I. INTRODUCTION  
1. The Government of Timor -Leste  applied for accession to the World Trade Organization in 
November  2016 (document WT/ACC/ TLS/1). At its meeting on 7 December  2016, the General 
Council established a Working Party to examine the application of the Government of Timor -Leste  
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/ TLS/2/Rev. 3.  
2. The Working Party met on 1 October  2020 under the C hairmanship of H.E.  Mr Rui Macieira  
(Portugal ).  
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 Timor -Leste  (WT/ACC/ TLS/3 and WT/ACC/TLS/3/Corr.1 ), the questions 
submitted by Members on the foreign trade regime of Timor -Leste, together with the replies thereto, 
and other information provided by the authorities of Timor -Leste (WT/ACC/TLS/4 , WT/ACC/TLS/8 , 
WT/ACC/TLS/10, WT/ACC/TLS/11, WT/ACC/TLS/12, WT/ACC/TLS/13, WT/ACC/TLS/14, 
WT/ACC/TLS/16 ) including the legislative texts and other documentation listed in Annex  1.  
INTRODUCTORY STATEMENTS  
4. The representative of Timor -Leste  said that  Timor -Leste assigned priority to WTO 
membership, as it would help to leverage the on -going improvements in its infrastructure, human 
capital and administrative capacity, to accelerate growth and economic diversification. Timor -Leste 
was committed to WTO me mbership. There was a strong political will, across all partisan lines, in 
support of implementation of domestic structural, legislative and policy reforms needed to comply 
with its future WTO commitments. This commitment was supported by the objectives of  
Timor -Leste's domestic economic and trade policy .  
5. Members welcomed Timor -Leste 's application to accede to the WTO . Recalling the 
2002/2012 Guidelines on LDC Accessions, they pledged to work with Timor -Leste towards this goal. 
Members acknowledged Timor -Leste's efforts to achieve compliance with WTO rules and expressed 
their readiness to provide assistance.  
6. The Working Party reviewed the economic policies and foreign trade regime of Timor -Leste  
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 Timor -Leste 's foreign trade regime and on the terms 
and conditions of Timor -Leste 's accession to the WTO are summarized below in paragraphs  7 to [...].  
II.  ECONOMIC POLICIES  
7. The representative of Timor -Leste informed that Timor -Leste was a low income 
least-developed country (LDC), with a total GDP of US$ 2,017.9 million (in 2 019). From 2008 JOB/ACC/TLS/4  
 
- 6 - 
 
  onwards, it had not  been dependent on development assistance. However, the economy remained 
fragile and dependent on oil and gas revenues. In 2021, Timor -Leste's non -oil GDP was estimated 
to grow 3.4%, following a contraction of -7.9% in 20 20. While fiscal policy remained the key driver 
of economic activity, private investment remained low, at about 4% of GDP and Timor -Leste's 
domestic market remained poorly integrated. Since independence, the Government had made major 
improvements to its in frastructure, however, internal trade costs remained high and economic 
activity remained concentrated in the capital. Timor -Leste's main trade and economic indicators are 
provided in Annexes 2(A) to 2(C).  
8. The country's vision  was set out in the Strategic D evelopment Plan 2011 – 2030 (SDP), 
which envisioned transformation from a low -income to an upper  middle -income economy  with 
a healthy, well -educated and safe population by 2030 . The SDP recognize d that achieving economic 
growth w ould require diversification of the economy. The priority sectors to drive economic 
diversification were downstream petroleum sector, agriculture, tourism, fisheries, light 
manufacturing and mining. Attraction of p rivate in vestment  was key to economic growth. The goal 
was to have a private sector -led market economy by 2030.  The Government was working to improve 
its perception indicators and global position.  
9. The foundations  for the economic reform and growth strategy had bee n laid out in 
the Economic Reform and Growth Guides (GRFE)  that set forth guidelines for build ing a free and 
predictable market and achieving compliance with the ASEAN, WTO, World Bank  (WB) and Asian 
Development Bank (ADB) standards and guidelines. The reforms had focus ed, namely, on: 
(i) creation of an easy, secure and transparent regulatory framework for the operation of business ; 
(ii) elimination of excessive bureaucracies that raise d costs for doing business ; (iii) streamlin ing 
process es for imports and exports ; (iv) strengthen ing of the government  institutions and 
the establishment of effective service delivery systems to the business sectors; (v) development of 
the infrastructure to support the private sector, such as electrical power p roduction and distribution, 
roads, ports and airports, water, sanitation and hygiene networks; and, (v i) identification of specific 
measures to develop the priority economic sectors.  The reform s sought  to use Timor -Leste's oil and 
gas re venues  to finance e conomic diversification.  The Guides had been in force until 2018.   
10. The COVID -19 pandemic had worsened the economic and trade performance of Timor -Leste 
resulting in a decline in GDP, caused by the reduction in the performance of economic agents and 
the con traction of supply and demand, consequences of social distancing, border closing, closing 
companies and lack of investment. In August 2020, the Government had adopted the  Economic 
Recovery Plan  for 2020 -2023 with the aim to respond to the se negative impact s. The Plan  defined 
a set of short -, medium - and long -term recovery measures, includin g temporary support to families 
and companies, measures to protect employment and guarantee income for families and companies 
in difficulty, seeking to minimize the stagnation of economic activities , contribute to  economic 
transformation, creat e more decent  jobs, consolidat e social programs for public investment and to 
chang e economic  structure with the objective to contribute to Timor -Leste 's economic growth.  JOB/ACC/TLS/4  
 
- 7 - 
 
  11. A Member asked for examples on how the Gover nment had improved the business climate . 
In response, the representative of Timor -Leste informed that, f or ease of Doing Business, 
Timor -Leste ranked 181st out of 190 countries covered by the World Bank's Doing Business indicators 
for 2020. He referred to activities carried out in 2019 -2020 aiming at the impr ovement of 
the institutional business climate under Component No. 5 of the Public Administration Reform 
Program 2019 -2023 approved by the Government Resolution No. 38/2020 of 23 September 2020 
by (hereinafter referred to as PARP) on bettering Doing Busines s ranking and on improving 
the business climate in general. With the technical assistance of the International Financial 
Cooperation (IFC), the Government had put together a Working Group to consolidate the reform in 
that field  and developed an Action Plan  for reforms on economic activities licensing  aimed to simplify 
activity licensing procedures. Developments with respect to specific Doing Business indicators are 
contained in Annex 3.  
12. A Member further requested to provide information on the Government's efforts to combat 
corruption. The representative of Timor -Leste informed that, o n the Transparency International 
Corruption Index for 2020, Timor -Leste has made good progress overtime and had been  ranked  
86th out of 180 countries with an increase of seven  score points since  2012.  He outlined the 
legislative framework in this area that included: the Penal Code (Decree -Law No. 19/2009 of 
8 April 2009), Law No. 3/2004 of 14 April 2004 on "Political Parties ", Law No. 2/2009 of 6 May 2009 
on "Protection of Witnesses ", Resolution by the National Parliament No. 25/2008 of 
10 December  2008 on the  ratification of UNCAC, Resolution No. 12/2019 of 13 March 2009 on the 
"Code of Conduct of Members of the Government " and, most recently, Law No. 7/2020 of 26 August 
2020 on "Anti-Corruption (Measures to Prevent and Combat against Corruption) ". The provisio ns of 
these acts were detailed in Annex 4.  
- Monetary and fiscal polic y 
13. The representative of the Government of Timor -Leste informed that r elevant laws with 
respect to the monetary and fiscal policy and the free flow of capital in Timor -Leste were: 
(i) Decree -Law No. 20/2003 of 13 November 2003  on the Official Currency in Timor -Leste; (ii) Public 
Instruction No. 4/2009  of 2 September 2009 on Importation and Exportatio n of Cash; (iii) Law 
No. 5/2011 of 15 June 2011  on the Central Bank of Timor -Leste (CBTL) Framework; (iv) Law 
No. 10/2011 of 14 September 2011  which approved the Civil Code (CC); (v) Law No. 17/2011  of 
28 December 201 1, as amended by Law No. 4/2013  of 14  August  2013, on the Anti -Money 
Laundering and Counter Financing of Terrorism; and , (vi) CBTL Regulation No.  1/2013  of 
6 September 2013 on the Minting and Use of C oins. 
14. According to Decree -Law No. 20/2003  and Article 79.1 of Law No. 5/2011, the official 
currency of Timor -Leste was US Dollar. In addition to t he US dollar banknotes , the centavos metallic 
coins of 1, 5, 10, 25, 50, 100 and 200 centavos circulated  in Timor -Leste  as the substitute to the  US 
cents . As specified by Decree Law No. 20/2003, these  coins, which  were issued  by the Central Bank 
of Timor -Leste  (CBTL), could  become the legal tender and ha d the authenticity to be utilized in any JOB/ACC/TLS/4  
 
- 8 - 
 
  public or private transactions. However, Timor -Leste still mainta ined the US Dollar as its sole legal 
tender because the centavos coins  were only usable within the country.  
15. Consequently, Timor -Leste d id not have its own specific currency policy . It was  not yet 
entrusted with the main instruments aimed at controlling the  supply of money, inflation rate, or 
interest rate in order to ensure price stability. However, the existing regime was viewed as transitory. 
As per Articles 79.1 and 79.3 of Law No. 5/2011, US Dollar  had a mandatory legal tender status in 
Timor -Leste  until a specific currency regime was defined and implemented pursuant to 
the Constitution. As of 2021 , there was no indication of when Timor -Leste might adopt its own 
currency. The Government ha d entrusted the CBTL to undertake research to study such a possibility.  
16. Once a specific currency regime was developed in Timor -Leste, the powers and 
responsibilities with respect to the definition and implementation  of the monetary policy and 
the issuance of the country 's own currency w ould be exclusively entrusted to the CBTL  (Article 143 
of the Constitution) . The CBTL was an autonomous entity  independent from the Government  and 
the National Parliament. Such independence and autonom y in the performance of its duties were 
assured, inter alia , by the fact that the Governor, Vice -Governors an d non -executive members of 
the Board of Directors of the CBTL could not, as a rule, be removed from office, except under specific 
grounds as provided for in the relevant legislation  (Articles 49 and 50 of Law No. 5/2011) . 
17. The CBTL 's portfolio could  include the following foreign assets: (i) gold or other precious 
metals held under the Bank 's custody, including account balances representing gold and other 
precious metals; (ii) banknotes and coins denominated in freely convertible foreign currencies held 
or under the Bank 's custody; (iii) cash or short -term interbank balances and deposits deno minated 
in freely convertible foreign currencies, and held in the CBTL 's accounts, on the books of foreign 
central banks or international financial institutions; (iv) readily -negotiable debt securities issued or 
accredited by foreign Government s, central b anks, or international financial institutions; (v) bonds 
with international financial institutions resulting from repurchase, sale and purchase agreements, 
and securities lending agreements in the case of the debt securities mentioned in (iv);  (vi) special  
drawing rights held in Timor -Leste 's account with the International Monetary Fund (IMF); and , 
(vii) Timor -Leste 's reserve position with the IMF.  
18. Due to the limitations on monetary policy, aggregate macroeconomic balance primarily 
depended on fiscal policy. Government expenditure was mainly funded by offshore petroleum 
production. Consequently, Timor -Leste had minimal government debt.  Since independence, 
the Government had maintained macroeconomic stability with inflation briefly exceeding 10% in 
2011 and 2012, but generally kept to single digits. As of March 2021, the inflation in Timor -Leste 
was 2.9%, on average, with prices slightly up as compared to March 2020. Meanwhile, the 
Government’s estimated inflation range was 4% -6%, as set out in the Gover nment’s Strategic 
Development Plan.  
19. Timor -Leste's public finance was highly dependent on revenues from the oil and gas sector . 
It corresponded to around 74% of the 2021 State Budget (US$ 1.88 billion). In this light,  in addition  JOB/ACC/TLS/4  
 
- 9 - 
 
  to the  ongoing economic ref orm, the Government was implementing a  fiscal reform , consisting of 
two major and complementary interventions, aimed at : (i) generating more financial resources in 
the framework of a modern tax system, and (ii) having a more balanced budget. To that end, current 
sources of revenue were being reassessed, along with means to reform expenditure.  Specifically, to 
improve revenue collection , the Government had modernized the  legislation by  revising the Customs 
Code in 2017 and was planning to revise the Taxes and Duties Act and to introduce  the Value Added 
Tax (VAT) , as two main components of the fiscal reform  (as described in Sections "Trade Facilitation" 
and "Application of internal taxes to imports" ). The development  of the new policies  follow ed 
the standards and guidelines of the WTO and ASEAN, as if Timor -Leste was a member of th ese 
organizations.  All legislation went  through a public consultation process with the  involvement of 
the business community, civil society and other s takeholders.  As a result of this reform, 
the Government expect ed to develop and implement  an improved tax collection and administration 
system, supported by modern information technology (IT), improved  service delivery culture,  
stronger integrity of government officials, and an enhanced accountability system.  
- Foreign  exchange and payment system  
20. The representative of Timor -Leste informed that f oreign exchange and payment system  was 
controlled by t he Central Bank  of Timor -Leste (CBTL), which  had powers and the responsibilities to 
define, develop, and adopt applicable foreign exchange rules in the country. In performing its duties 
as the foreign exchange authority, the CBTL was entitled to carry out foreign exchange transactions 
and hold and manage official foreign currenc y reserves . 
21. Prices of all goods and services, and the monetary consideration in respect of all other 
transactions, could  be denominated in units of the official  currency of Timor -Leste, i.e., all payments 
arising from or in connection with any contract executed in Timor -Leste, including : (i) payments in 
connection with any debt or obligation, and (ii) payments owed to or by any public authority in 
Timor -Leste, had to be made in US Dollars. This d id not mean that the parties to a given contract 
were prevented from denominating the relevant transaction in a foreign currency. However, in such 
a scenario, the debtor could  always make such payments in local currency at  the exchange rate of 
the day on which it was due, except if an express waiver to that possibility was included in the 
contract . 
22. Currently  there were no foreign exchange restrictions in force in Timor -Leste, except on 
the transportation of physical currenc y to and from the country.  Under the cur rent regulations , Public 
Instruction No. 4/2017 of 28 March 2017 on "Importation and Exportation of Cash" , issued by  
the CBTL, both the importation of cash into Timor -Leste and the exportation of cash out of 
Timor -Leste in an amount exceeding US$  20,000, or its equivalent in foreign currency, require d 
the CBTL's prior authorization. Such Public Instruction further state d that if the relevant amount 
being imported and/or exported exceed ed US$ 5,000, or its equi valent in foreign currency, but d id 
not exceed US$  20,000, or its equivalent in foreign currency, it had to  be declared before 
the customs officer at the port of arrival and or departure. There were no similar restrictions in 
respect of wire transfer of funds (irrespective of the currency and amounts in question) into or from JOB/ACC/TLS/4  
 
- 10 - 
 
  bank accounts opened in Timor -Leste, with the exception  of Know Your Customer and 
anti-money -laundering rules.  
23. Law No. 17/20 11 of 28 December 2011 on Anti-Money Laundering and Counter -Terrorism 
Financing (AML -CTF), as amended by Law No. 5 /2013  of 14 August 2013,  was based on some of 
the fundamental principles and rules of the European model, notably those contemplated by 
EU Directives No. 2005/60/EC and No. 2006/70/EC.  Anti-money -laundering rules ha d an impact on 
flows of payments and transfer transactions. In fact , financial institutions were required to refrain 
from performing transactions (including payments and transfers), r egardless of the amount involved, 
that they suspect ed to be related to money laundering or financing of terrorism and were to  report 
their suspicions to the Financial Information Unit, which had been  created within the CBTL. When 
financial institutions (an d other entities subject to the AML -CTF) carr ied out one -off transactions in 
an amou nt equal to or greater than US$  10,000, in one or more apparently linked transactions, they 
were required to comply with specific identification duties with respect to their customers and 
beneficial owners of the underlying transaction. The CBTL had developed further guidance on 
Customer Identification, Record Keeping and Transaction Report as issu ed in Public Instruction             
No. 5/2017 of 25 August 2017 .  
- Investment regime  
24. Timor -Leste 's major objectives on investment were to promote and encourage both domestic 
and foreign investment and to increase the rol e of the private sector in the country 's economic 
development  and diversification , namely by creation of employment opportunities  stimulation of 
export growth . The system of investment attraction and facilitation was a key area for ongoing 
reform. Private Investment Law  No. 15/2017 of 23 August 2017  had superseded Private Investment 
Laws No. 14/2011 of 28 September as the main statute governing investment operations by both 
domestic and foreign investors  in the country. This Law had replaced an ex-ante screening process 
for FDIs with sectoral licensing and a limited negative  investment  list. Government Decree 
No. 2/2018 detailed the regulation and procedures for private investments in Timor -Leste.  
25. The Law was complemented by an Investment Reform Map (IRM)  developed by the World 
Bank in 2016 -2017,  which was a non -binding policy document outlining promotion and attraction of  
FDIs in specific sectors of the economy.  The IRM suggest ed the Government of Timor -Leste to target 
the following priority sectors  that could be profitable to investors and had a significant development 
impact : (i) sustainable tourism  (religious and pilgrimage tourism, cultural and historical tourism, eco 
and marine tourism, agri -tourism and community -based tourism, adventure and sport tourism ); 
(ii) strategic infrastructure  (roads, airport, seaport (connectivity); transport and communic ation 
(accessibility); energy such as renewable energy (growth) ); (iii) construction materials  (cement 
manufacturing, building ); (iv) agricultural -based industries  (industrial crops (e.g. coffee, coconut, 
candlenut, maize, rice, cocoa, vanilla); forestry ( e.g. sandalwood, teakwood, bamboo); livestock 
(cattle, goat, pig, chicken) ); and ( v) agricultural crops  (horticulture (e.g. vegetables (broccoli, 
cauliflower); fruits (banana, mango, avocado, tangerine); legumes (red beans, mungbeans, 
soybeans, peanuts; sp ices – peppers, cloves) ). Short-term reforms were needed to develop those JOB/ACC/TLS/4  
 
- 11 - 
 
  sectors. The IRM also suggest ed to target the sectors that could be beneficial for Timor -Leste but 
were not yet a ttractive for investors: ( i) fisheries ; (ii) livestock ; (iii) downstr eam petrochemicals ; 
and ( iv) garments. Medium and long -term reforms were needed  in these sectors . TradeInvest 
Timor -Leste, which was the country's Investment  and Export  Promotion Agency, ha d been 
re-focused to concentrate on the se sectors . The Government was committed to formalize the IRM 
with necessary revision to accommodate the current situation  and investment environment  in 
Timor -Leste.  The revision could  include provision of  information on subsectors under each targeted 
priority sector a nd investment and export trend s in Timor -Leste. It was expected that the revision 
would be made by 2022.  
26. Regarding TradeInvest  Timor -Leste , he clarified that it acted as  the Government 's 
one-stop-shop agency for private investors. Re-established by  Decree -Law No. 45/2015 of 
30 December 2015, the Agency 's main  role was to promote, facilitate, monitor and advocate for  
private investment s and exports , by centralizing all administrative procedures that must be followed 
by investors who wished to enjoy the tax and customs incentives set out in the Private Investment 
Law. TradeInvest Timor -Leste website ( http://www. tradeinvest.tl ) contained general information 
about Timor -Leste's investment framework and regulations, as well as the latest investment  and 
export  news and descriptions of investment and export opportunities by economic sector and 
geographical location.  
27. He further informed that among the  investors'  rights and guarantees  enshrined in the Private 
Investment Law were: (i) fair and equitable treatment; (ii) access to courts; (iii) access to 
information ; (iv) land ownership and land use; (v) guarantee against expropriation; (vi) right to 
import and export; (vii) right to access credit; (vi ii) overseas transfer of fund; (ix) intellectual 
property right; (x) secrecy (respect for professional, banking and commercial secrecy); 
(xi) confidentiality; and (xii) hiring of foreign workers and collaborators . In response to Member's 
question, the repr esentative of Timor -Leste added that the Law specified that all investors, 
regardless of nationality, had the same rights and obligations and enjoyed the same level of 
protection. An exception related to the right to ownership of the land, which was regula ted by 
the Constitution.  
28. Specifically, Article 10.3 of the Law provided that all investors enjoyed equal opportunities 
for accessing the  investment  incentives.  The fiscal (tax and customs) and non -fiscal benefits 
provided to investors under the Private Investment Law  (Articles 29 and 30)  include d: (i) 100% 
income tax exemption for a period of between 5  and 10 years, depending on the location of 
the investment; (ii) for the purpose of determining the tax base, up to 100% of expenses incurred 
with respect to the construction and repair of road infrastructure not associated with the exercise of 
taxable business activities, could  be considered as costs; (iii) 100% sales tax exemption for a period 
between 5 to 10 years, depending on the location of the  investment, in relation to all capital goods 
and equipment used in the construction or management of the investment or re -investment project; 
(iv) 100% services tax exemption, for a period between 5 to 10 years, depending on the location of 
the investment , in relation to developments geared towards the provisions of specific services; JOB/ACC/TLS/4  
 
- 12 - 
 
  (v) 100% customs dut y exemption on imports for a period between 5 to 10 years, depending on 
the location of the investment, in relation to all capital goods and equipment use d in the construction 
or management of the investment re -investment project; (vi) guarantee of a minimum five work 
visas for workers or collaborators qualified for supervisory, directing or technical functions as 
appropriate to the investment project; and (vii) opportunity to lease state/private land for 
a maximum period of 50 years, renewable for period of 25 up to 100 years . 
29. Further, he  clarified that, in line with  Article 34 of the Law and  Government  Decree 
No. 2/2018 , the incentives could be granted to investments with a minimum value of US $ 50,000 
(for national investors ); US$ 500,000 (for foreign investors ); and US$ 250,000 (for joint ventures 
or one of the legal forms of partnership between foreign and national investors in which the latter 
controlled  at least 75% of the share capital of the commercial societies involved). Main criteria for 
incentive eligibility were: (i) investments and re -investments had to be carried out in the territory 
of Timor -Leste by national and were likely to contribute to th e socio -economic development of 
Timor -Leste; and (ii) the incentives did not apply to investments made by the state and by public 
entities.  The benefits were provided based on zones (see Table 1). The incentives did not apply to 
investments  made by the State or by public corporations, including i nvestments made by legal 
persons where  more than 50% of their capital was held by the State or by a public corporation 
(Article 2.3 of the Law).  
Table 1. Special benefits based on zones  
Zone  Tax exemption period  
Zone A  5 years for the municipality of Dili, corresponding to the administrative posts of Cristo Rei, 
Dom Aleixo, Na'i Feto and Vera Cruz  
Zone B  8 years for areas corresponding to those located outside the boundaries of the urban area of  
the municipality of Dili  
Zone C  10 years for special zones Oe -Cusse Ambeno and Ataúro  
 
30. The regulatory framework included the provision of incentive certificates (Declarations of 
Benefits and Special Investment Agreement) and support to investors by granting authorizations, 
visas, permits and registration , as well as facilitation services provided by TradeInvest.  To enjoy 
the incentives, investors had to receive an incentive certificate from TradeInvest. The following 
procedure had to be followed: (i) an investor had to submit an application to TradeInve st with other 
legal document s and an investment plan; (ii) TradeInvest carrie d out technical analysis of document s 
and ensur ed that  all necessary documentation was provided ; (iii) the document ation was submitted 
to relevant ministries for appraisal; (iv) mini stries could provide technical comments within 
6 working days for reflection in TradeInvest 's report; (v) the report was submitted to Coordinating 
Minister for Economic Affairs as supervisory body of TradeInvest; and (vi) decision for granting of 
investmen t incentive certificate was made  by the Coordinating Minister for Economic Affairs.  
He informed that fees that had been set under  the previous Private Investment Law (US$ 500 for 
Timorese nationals and US$ 2,000 for foreign investors), had been abolished w ith the entry into 
force of Law No. 15/2017.  No fee was charged for the services of promotion and facilitation of 
investment rendered, as well as for processing the application for granting declaration of benefits 
and negotiation of a special investment ag reement.  JOB/ACC/TLS/4  
 
- 13 - 
 
  31. He added that, while Timor -Leste was committed to open its economy to foreign investors , 
it had to maintain a number of restrictions, limitations or prohibitions to FDI entry. The Government 
had adopted policies that aimed to steer FDI into sectors, municipalities and investment projects 
that were seen as particularly beneficial to Timor -Leste's economy development and diversification. 
Annex 5 provides a summary of FDI regulations in Timor -Leste.  
32. He further informed that projects of national importance, due to their economic, social, 
technological and environmental impact could be subject to a  special investment agreement regime 
to be negotiated with the investor and under the special conditions approved by the Government. 
Article 10.4 of the Private Investment Law provided exceptions from the regime described above for 
investments which, due t o their nature or size, were the subject of special agreements, 
the investments of nationals which may receive support or more favourable treatment from 
the State, and favour investments which contribute to national development priorities ( defined 
through the National Strategic Development Plan 2011 -2030 (NSDP)) , in particular in special 
economic zones and special industrial areas, as defined in the 2017 Timor -Leste Investment Guide 
(see Section "Free Zones, Special Economic Areas "). The 2017 Investment Gui de would be revised 
by TradeInvest to accommodate current situation, by 2022.  
33. He further clarified that t here were restrictions on investment  in several sectors  (e.g., postal 
services, public communications  (which included journalism activities (research, collection and 
treatment of information to public), and establishment of news agencies) , weapon productions and 
distribution, or in zones that could affect protected areas ) which were primarily reserved for 
the State. In response to a question f rom a Member, he added that the Private Investment Law 
allowed for  investments in any economic activity, provided  that they were  permitted by  sectoral  law, 
without requiring a  prior authorization in addition to the procedures established by law (Article 9. 1), 
with the exception of economic activities expressly reserved for the exclusive ownership or 
exploitation of the State (Article 9.2). In line with Article 9.3 of the Law and the relevant sectoral 
legislation, TradeInvest Timor -Leste had drawn up the lis t of prohibited or restricted activities and 
sectors ( "Negative List of Investments ") following discussions with the Chamber of Commerce and 
Industry of Timor -Leste (CCI -TL), investors and other economic operators and stakeholders. This list 
has been provided to the Working Party for consideration. The negative list distinguished between 
two types of sectors, namely: (i) prohibited/restricted sectors where investment activity was 
prohibited/restricted for both domestic and foreign investors; and (ii) conditional sectors where 
investment activity was conditional for foreign investors ' partic ipation. The summary of sectorial 
classification in the negative list can be seen in Table 2. The list was an evolving document, i.e., at  
any time sectors could be deleted from or added to the list based on relevant legislation.  JOB/ACC/TLS/4  
 
- 14 - 
 
  Table 2. Summary of the sec torial classification in the Negative List  
Prohibited/restricted for all investors  
(6 sectors)  Conditional for foreign investors ' participation  
(7 sectors)  
1. Criminal activities ; 
2. Activities related to environmental protection 
areas ; 
3. Activities related to offensive of traditional 
customs ; 
4. Activities related to arms and ammunition 
production and distribution ; 
5. Postal and courier services ; 
6. Funeral service activities . 1. Activities of public communication services and other 
media services ; 
2. Publishing activities for books, periodicals, 
newspapers and other publishing activities ; 
3. Urban and suburban passenger land transport 
activities and other passenger land transport activities ; 
4. Air transport activities ; 
5. Air carrier operator activities ; 
6. Gambling and other recreational activities ; 
7. Insurance activity . 
 
34. Prospection , exploration, and production of oi l and gas, mining activities,  and public private 
partnerships were also subject to specific legal regimes . Thus, p rospection, exploration and 
production of oil and gas were subject to the  rules provided for in Law No. 3/ 2005 on "Petroleum 
Activities ", which  set forth  the legal regime for all petroleum activities undertaken in the territory of 
Timor -Leste. The  Law established a regulatory regime to allow petroleum companies to develop 
petroleum resources in the national territory, with the objective to provide benefits to Timor -Leste 
and its people and to ensure stability and transparency in regulating t he development of petroleum 
resources. Petroleum contracts t ook the form of production -sharing contracts. Participation of 
the State in the oil operations was subject to the terms agreed upon with the selected companies in 
the respective production sharing  contracts.  
35. Investment in mining activities, including licensing of extractive minerals (mines and 
quarries) for medium and large mineral extractive activities were subject to a special legal framework 
defined in Ministerial Diploma No. 64/2016 of 16 Novem ber 2016 with its objective to regulate 
the use of Ornamental Stones, Construction Materials. The legal regime did not apply to small -scale 
activities undertaken manually by small family economic units, in which the amount of extraction 
did not exceed 30 t onnes per month .  
36. The Mining Code had been  approved by the National Parliament in May 2021 and sent to 
the President for promulgation . The Code was a comprehensive law that regulate d all mining 
activities including recognition, prospecting, evaluation, development, and exploitation, processing, 
refining and trading. It regulate d administrative procedures for gra nting licen ces and authorizations, 
as well as norms to define concession a reas, rights, obligations and rules of inspection and 
supervision. It cover ed all phases of mining activities and include d provisions on health and safety, 
environmental protection, inclusion of local content, the labour schemes applicable and penalties, 
mining registry as  well as transparency and good  practices. Under the Code , right or permit was 
awarded following a competitive tender procedure (general rule) or direct award (in exceptional 
cases). Government c ould proceed with the direct award in the fol lowing cases (Article 11.1 and 
11.2): (i) the area to be released was considered as a new area delimitation with insufficient 
information and data; (ii) the public tender has been deserted; (iii) health, safety and environmental 
risks are associated with the mining area; (iv) for strategic minerals; (v) in situations of di rect award 
to the national mining company; and, (vi) artisanal mining permits are always assigned by direct JOB/ACC/TLS/4  
 
- 15 - 
 
  contract.  The Code w ould promote and facilitate the discovery and exploitation of mineral resources 
in order to promote economic and social benefits  to the country . 
37. He added that i nvestment in Timor -Leste could  also be pursued through a Public Private 
Partnership ( PPP). The Legal Framework for PPPs had been  approved by Decree  Law No. 42/2012 of 
7 September 2012, as amended by Decree  Law No. 2/2014 of 15 January 2014. The Government 
ensure d participation of the private sector in building public infrastructure in the country on 
the grounds of public tender, transparency and fair competition.  PPP contracts were allowed for 
design,  construction , execution , operation and maintenance  of infrastructure. The Law regulat ed 
the implementation of PPPs, as well as the approval of PPP procurement procedures in accordance 
with the respective project cycle ( which  include d the following phases: Initial Phase , Viability Phase, 
Procurement and Negotiation Phase, and Implementation and Operation Phase).  
- State ownership and privatisation  
38. The representative of Timor -Leste informed about the following state -owned e nterprises that 
were in place in Timor -Leste: (i) Public Company for Administration of Airports and Air Navigation 
of Timor -Leste (ANATL, E.P); (ii)  Timor -Leste 's National Oil Company, TIMOR GAP; (iii)  Radio and 
Television of Timor -Leste, Public Enterprise (RTTL, E.P.); (iv)  Public Electricity Company of 
Timor -Leste (EDTL, E.P.); and (v) public enterprise for water supply and sanitation of Timor -Leste  – 
BEE of Timor -Leste (BTL, E.P).  
39. He further informed that the re were currently no Governmental or  non-Governmental 
enterprises, including  State Trading Enterprises (STE) , Private Enterprises (PE)  or marketing boards, 
with exclusive rights or privileges in export or import operations. In response to Member's question, 
he clarified that there were no  STEs or PEs with exclusive or special rights or privileges in terms of 
financing as compared to commercial enterprises, whether foreign or domestic. Public funds to STEs 
were made available by way of Public Transfers, in exceptional circumstances.  He added t hat the 
Government observe d general principles of non -discriminatory treatment for public policies affecting 
imports or exports by private traders. He confirmed that s uch principles w ould continue to be  
observed if STEs were created  in Timor -Leste in respo nse to market needs not met by the private 
sector.   
40. With respect to  Timor -Leste's future notification  obligations,  he informed that  
the Government planned  to conduct a thorough review of the public policy measures  affecting state 
trading, which were yet to be developed, aiming  at ensuring the maximum transparency possible in 
such notifications, so as to permit a clear appreciation of the manner of operation  of the notified 
enterprises and the effect of their operations on international trade.  
- Pricing  policy  
41. Timor -Leste adopt ed open economic policies aimed at facilitating business in the country. 
As a young country, Timor -Leste  applied pricing policies  as an interim measure, to safeguard normal 
supply of basic food stuffs at affordable and fair prices for the population. The country import ed JOB/ACC/TLS/4  
 
- 16 - 
 
  most of its basic consumption goods from overseas. It was, therefore, crucial for the ex isting policies 
to prevent price speculation, lack of supply of essential goods, inflationary price rise and abnormal 
increase in prices .  
42. There were a few legal statutes aimed at ensuring minimum standards or prices in specific 
sectors, namely: (i) Go vernment Resolution No. 20/2008  of 13 August 2008 on Public Supply of 
Essential Goods, as amended by Decree -Law No. 27/2019 of 27 August 2019 ; (ii) Gov ernment 
Decree No. 13/2008  of 13 August 2008, which set forth the Rules for Intervention in Public Supply 
and Prices; (iii) Decree -Law No . 29/2011  of 20 July 2011, approving the framework on Fair Prices 
(this statute establishe d the rules applicable to the  intervention of the Government in the pricing of 
certain goods and services deemed es sential to the community); (iv)  Decree -Law No. 28/ 2008 of 
13 August 2008 on "Public Supply of Essential Goods and Management of the Negative Effects of 
Inflation "; (v) Ministry of Tourism, Commerce and Indust ry Ministerial Order No. 6/2008  of 
24 December 2008, which sets forth measures to Stabilize Prices, Fight Inflation and Prevent 
Speculation; (v i) Ministry of Tourism, Commerce and Industry Minist erial Order No. 6/MTCI/III/2011  
of 23 March 2011, concerning the Sale Price and Distribution of Locally Produced Maize; 
(vii) Government Resolut ion No. 13/2012  of 9 May 2012, which set forth the maximum sales margins 
of certain essential goods and measures to fight inflat ion; and (vi ii) Ministry of Tourism, Commerce 
and Industry Mini sterial Order No. 1/2013  of 30 January 2013 concerning the Intervention over 
the Public Supply of Rice and Standardization of Prices. The main goal of these statutes was to 
increase social and economic justice with respect to basic products and to facilitate access to these 
products through fixing fair prices.  The intervention by the Government was done only in exceptional 
circumstances and was applicable only to certain goods and services that were deemed vital for 
the subsistence of the country 's most vulnerable  families.  
43. Pursuant  to Decree -Law No. 29/2011 , certain  products intended for local distribution and 
sale were currently subject to different types of price controls. The Government intervention was 
aimed at controlling speculation and mark-up of retail and sales prices in the domestic market at 
large for: (i) products subject to a maximum price regime – rice; c ooking oils; f ood intended fo r 
infants up to one year of age; cement; iron rod for building; g asoline for motor fuel,  both in wholesale 
and retail; d iesel for motor fuel,  both in wholesale and retail; f uel oils ; and, l iquefied petroleum 
gases; and, (ii)  products subject to a  monitored price regime – sugar (retail); rice (wholesale and 
retail); c orn (import  and marketing retail stages); c hicken, rooster, hen meat and other offal (import  
and marketing retail stages); c ement (marketing retail stages); t axis an d chauffeurs driven hired 
cars; u rban c ollective transports; i nterurban collective transports; c ookin g oils (wholesale and 
retail); e ggs in  their natural state (retail); pasta; s and and stones for the building  and construction 
sectors; and, m edication to b e specified by the Ministry of Health.  
44. Members asked for further clarification on the minimum price requirements contained in 
the statutes indicated in paragraph [42], the scope of goods covered by such statu te and 
the mechanisms used to maintain the prices above market prices . The representative of Timor -Leste 
responded that there were no polic ies fixing minimum prices (or price floors) in Timor -Leste. JOB/ACC/TLS/4  
 
- 17 - 
 
  The minimum price s were fixed by inherent market mechanisms.  The purpose of the statues  was to 
limit maximum prices, pursuant to  Decree -Law No. 28/2008 that guaranteed  the population 
the ability to obtain essential goods at sustained or subsidized prices.  Decree -Law No. 29/2011 of 
20 July 2011 on "Fair Price"  determined that t he prices of goods and services sold or supplied could  
be subject to the following regimes: (i) fixing the maximum prices  for retail sales by wholesalers  
and s ales to the final consumer, i.e. to the public; (ii) establishment of marketing margins; 
(iii) contracted prices; (iv) monitored prices; (v) free prices, whenever they were not subject to 
previous regimes .  
45. With respect to the exceptional circumstances in which the Government could intervene to 
fix fair prices, he referred to Article 1.3 of Decree -Law No. 29/2011  that determined the following 
exceptional circumstances:  (i) situations of illicit distortion of market prices through monopolies, 
cartels or collusion for artificial price setting ; (ii) substantial variation of prices with speculative and 
unjustified profit margins given the national and international climate ; (iii) signs of hoarding of basic 
goods ; or (iv) other anomalous situations of market prices which d id not justify or which were not 
within the scope of intervention under the legal regime of public supply. Such circumstances  could  
include, among others, a rise in international food prices, alimentary emergencies (natural disaster, 
calamity, etc.), market distortions (price specu lation etc.) , drops in agricultural crop, etc.  
46. Pursuant to Article 12 of Decree Law No.  29/2011 the setting of maximum prices was 
the responsibility of the Prime Minister, or whomever he delegates, based on a proposal from 
the Ministry of Tourism, Commerce  and Industry  that defined the scope of goods and services 
subject to price regimes . The establishment of price regimes had to be  announced and published by 
ministerial order, containing a summary of the grounds of intervention, the term of the same, 
the products covered, and the specifications referred to in the present diploma.  The price regimes 
were in force until they were expressly superseded and/or replaced by a new ministerial order . 
47. In response to Member's question, he elaborated that Decree Law No.  29/2011 listed goods 
and services that were subject to a fixed marketing margin and a monitored price. However, as per 
Article 5.2 of the Decree Law, these goods and services could be subjected to different price regimes, 
depending on the market condition s. Following products were subject to monitored prices: (i) sugar 
(retail);  (ii) rice (wholesale and retail);  (iii) corn (import and retail);  (iv) c hicken meat (import and 
retail);  (v) cement (retail);  (vi) c ooking oil (wholesale and retail);  (vii) e ggs (retail);  (viii) p asta; 
(ix) s and and stones for the building and construction sectors;  (x) m edication to be specified by 
the Ministry of Health; and  (xi) p ublic transportation services (taxis, rental cars, urban collective 
transport, inter -urban buses).  Table 3 contained the list of products subject to fixed marketing  
margins.   JOB/ACC/TLS/4  
 
- 18 - 
 
  Table 3. Products subject to f ixed marketing margins  
 Wholesale  Retail  
Rice with 5%, or more, broken rice  10% 15% 
Rice with 5% more breakage  8% 10% 
Food oils  8% 10% 
Foodstuffs, natural, powdered, preserved or in any form, intended for infants up 
to 1 year of age  8% 10% 
Cement  10% 15% 
Iron rod for civil operation  10% 15% 
Engine fuels, irrespective of the lead content, classified by the Timor -Leste 
Customs Tariff / Combined Nomenclature code 2710.11 at the wholesale and 
retail sale  - - 
Motor diesel, classified by the Timor -Leste Customs Tariff / Combined 
Nomenclature code 2710 19 at the wholesaler and  
retail sale  - - 
Fuel oils having a lead content  exceeding 1%, classified by the Timor -Leste 
Customs Tariff / Combined Nomenclature code 2710 19  - - 
Petroleum gas, classified by the Timor -Leste Customs Tariff / Combined 
Nomenclature code 2711 13, marketed in the form of bottled  - - 
 
48. With respect to his  Government's plans to reduce its interventions so that enterprises 
engaged in commercial activities set prices according to commercial considerations , he added that 
the intervention measures ha d a temporary character and would not alter the economic system and 
model from free market competition , as specified in Decree  Law No. 28/2008 of 13 August 2008 on 
"Public Supply of Essential Goods and Management of the Negative Effects of Inflation ". 
The intervention s were to be revoked at any moment once the exceptional  circumstances return ed 
to normal.  
49. The representative of Timor -Leste  added that  his Government, through the Ministry of 
Tourism, Commerce and Industry (MTCI), had run the "Povu Kuda, Governu Sosa" (People Cultivate, 
Government Purchases)  Program  to stimulate farmers to crop any agricultural products within 
the national territory . Through this Program,  which had been established in 2008  as a measure to 
respond to the political and economic cris is in Timor -Leste arising since 2006 , prices  were set for 
purchasing agricultural commodities from local farmers, applicable only to rice and maize, which 
were basic cereals for food security in the country. As such, the Government of Timor -Leste had 
establishe d the price for MTCI to purchase those cereals, as well as the sale price at municipal 
markets, calculated according to the distance for each municipality. The most recent legal texts on 
rice and maize were Ministerial Order No. 32/2017 of 17  May 2017 on "Regulation of Price for of 
Rice for Re -Sale" and Ministerial Order No.  6/MTCI/III/2011 of 23  March  2011 on "Sale Price and 
Distribution of Locally Produced Maize" . The policy had been  part of the Government 's strategy to 
encourage domestic produc tion and to address the future food security needs of the country.  
50. A Member requested to provide budgetary allocations for this Program as well as 
the estimated value of agricultural production for th e specified  crops . In response, the representative 
of Timor-Leste informed that the Program had been  implemented by the private sectors with 
a minimum capital of US$ 5,000 to purchase essential products such as rice and maize.  
The estimated value of agricultural production, in accordance with the FAO report on the positive 
impact of this support for the essential products (in thousands , US$), was provided in Table 4. 
The Program had been terminated in 2012.  JOB/ACC/TLS/4  
 
- 19 - 
 
  Table 4: Estimated value of agricultural production in Timor -Leste, 2008 - 2012  
US$, thousand  
Description  2008  2009  2010  2011  2012  
Timor -Leste Yield 
Cereals, total  14,427  23,155  24,514  25,861  20,899  
Timor -Leste 
Production Cereals  180,430  255,490  261,816  148,080  182,005  
 
51. A Member also asked to describe how purchase prices were set  under this Program  and what 
production was eligible for the prices.  The representative of Timor -Leste clarified that the purchase 
prices were set according to market price of the agricultural commodities, whereby the Government 
purchases rice, maize, beans and other agricultural commodities at a subsidized price, i.e. market 
price plus transportation costs, in accordance with Decree -Law No. 2 8/2008  of 13 August 2008 on 
"Public Supply of Essential Goods and Management of the Negative Effects of Inflation ". 
- Competition  policy 
52. As a result of Timor -Leste 's current level of economic development and private invest ments, 
the Government  had yet to elaborate its competition policies. Furthermore, as there were limited 
major corporations or business groups (and no listed companies, as there was currently no securities 
exchange) that ha d the ability to control or monopolize sectors of the economy, the country ha d yet 
to establish a national competition authorit y, although certain public policies aimed at regulating 
specific sectors of the economy ha d been approved in the past, and in certain economic sectors 
there were references to the possibility of regulating competition (notably in the telecommunications 
and petroleum downstream sectors).  
53. However, t he Government  recognize d the importance of competition for the strategic 
development of the economy , both domestically and internationally and promote economic growth 
and development. For this reason, it ha d establ ished a work ing g roup to discuss and prepare 
a Competition  Promotion  Policy, based on international standards . The Policy had been first drafted 
in 2015 and was undergoing a revision. The three expected outcomes of thi s Policy were: 
(i) development of a Competition Law; (ii) development of a Consumer Protection Policy; and 
(iii) establishment of the National Quality Control Institute  of Timor -Leste ( NQCI) under the Ministry 
of Tourism, Commerce and Industry  (MTCI) . The authorities respons ible for the implementation of 
the Competition Promotion Policy were as follows:  (i) the Directorate of External Trade of the MTCI;  
(ii) the QITL; and  (iii) TradeInvest Timor -Leste.  
54. Moreover, the National Parliament ha d passed the Consumer Protection Law N o. 8/2016  
of 8 July 2016, which establishe d the legal regime for consumer protecti on and legal assistance , 
defining the functions of the State, the rights of consumers and the role of consumer associations. 
The law applie d to goods and services supplied, rendered and transmitted by any natural, and legal, 
national and international, public and private persons, who develop, on a professional basis, 
activities of production, manufacturing, exporting, importing, construction, distribution, 
transportation or sale of goods and services, with a view to obtaining benefits. Further discussions JOB/ACC/TLS/4  
 
- 20 - 
 
  were underway  to define the main areas to be regulated and the required i nstitutional framework to 
ensure law enforcement.  
III.  FRAMEWORK FO R MAKING AND ENFORCING POLICIES  
- Powers of executive, legislative and judicial branches of Government  
55. The representative of Timor -Leste informed that t he Constitution of the Democratic Republic 
of Timor -Leste (hereinafter: Constitution) had been  approved and decreed on 22 March 2002, at 
a plenary session of the members of the Constituent Assembly, elected on the 30 August 2001 and 
acting as the legitimate representati ves of the Timor ese People.  
56. As provided for in the Constitution, Timor -Leste was a rule of law S tate based on the principle 
of separation of powers and checks and balances, with three separate coordinated branches: 
the Legislative, the Executive and the Judiciary  (Article s 1 and 69 of the Constitution) . In accordance 
with these principles, four organs of sovereignty exist ed: (i) the President of the Republic; 
(ii) the National Parliamen t; (iii) the Government ; and , (iv) the Courts  (Article 67 of 
the Constitution) .  
57. The President  of the Republic  was the Head of State  and the Supreme Commander of 
the Defen se Force. Articles 74 to 89 of the  Constitution define d the role a nd powers of the President. 
The President was elected by universal, free, direct, secret and perso nal suffrage, for a five -year 
term (Articles 65.1, 75  and 76). He was invested and t ook oath before the National Assembly and 
could be re -elected only once  (Articles 77.1 and 75.3 of the Constitution) . The President ha d 
the power to appoint the members of the Government, upon proposal from the Prime Minister 
(Article 106.2).  Among the President 's powers was the power to promulgate or veto Laws passed by 
the National Parliament and Decree  Laws approved by the Government (Article 88), and the power  
to dismiss the Government , if the National Parliament reject ed the Government program me for two 
consecutive times  (Article 86(g)) .  
58. The Government of Timor -Leste was  headed b y a Prime  Minister, who was nominated by 
the President of the Republic after consultation with the sitting parliamentary parties, considering 
the electoral results and the existence, or not, of political majority party or partisan coalition or 
colligation possible  (Article 106 of the Constitution) . The Government was the supreme organ of 
public administratio n responsible for conducting and executing the general policy of the country  
(Article 103 of the Constitution) , including the power  to negotiate  and prepare for  accession to 
international treaties  (Article  115.1(f) of the Constitution) . It was also vested with legislative powers  
(Article 115.3 of the Constitution) .  
59. The National Parliament was the legislature of Timor -Leste . It had a  unicameral structure 
and consist ed of a minimum 52 and a maximum of  65 representatives  elected in secret ballot  
elections for a five -year mandate  (Article 92 and 93 of the Constitution) . The Constitution did not 
limit the number terms that could be served by an elected member of the National Parliament. Under 
the Constitution, the National Parliament ha d the power to  approve legislation  (Articles 95 and 96 JOB/ACC/TLS/4  
 
- 21 - 
 
  of the Constitution) , as well as to  approve , denounce or ratify  international conventions , treaties  and 
other international agreements  (Article 95.3(f) of the Constitution) . Accordingly, f or Timor -Leste to 
become a WTO Member , the National Parliament would need to ratify the Protocol of Accession  in 
accordance with th e Constitution.  
60. The representative of Timor -Leste clarified that  the Constitution set forth the division  
between the legislative powers of the National Parliament and the Government . There were : (i) areas  
where  the National Parliament h eld exclusive compet ence to pass laws , e.g., the State Plan and 
the State Budget , territorial division of the country, the electoral law and the referendum system, 
tax policy, defence and security policy, declaration of state of emergency  (Article 95.2 of 
the Constitution) ; (ii) areas where  the National Parliament  had the primary responsibility to  legislate 
or could authorize the Government  to legislate , e.g.,  monetary system, banking and financial 
system, definition of crimes, sentences, security measures and their respective prerequisites; 
definition of civil and criminal procedure; organisation of the judiciary and status of magistrates  
(Article 96.1 of the Constitution ); (iii) overlapping areas where  both the National Parliament and 
the Government  could legislate  which were not identified in the Constitution, such as public 
procurement rules ; and,  (iv) areas of exclusive reserve of legislative powers of the Government , 
e.g., matters concerning the organization and functioning of the Gove rnment, including 
the organization of public administration and creation of autonomous agencies  (Article 115.3 of 
the Constitution) . The Parliament adopted its legislative acts in the form of  Laws, while 
the Government  enacted Decree  Laws. Both Law s and Decree Law s were legislative acts where  
distinction was one of form  and not substance. There was no hierarchy between them . All laws, 
including those approving, denouncing or ratifying  an international  convention, treaty or 
an international agreement,  and Decree  Laws had to be submitted to the President of the Republic 
for promulgat ion (Articles 73, 85(a) and 88.1 of the Constitution)  before publish ing in the official 
gazette  ("Jornal  da República ", available at: http://www.mj.gov.tl/jornal/ ). The continuing effect of 
laws from before independence is explained in Annex 6. 
61. He added that Timor -Leste legal system adopted the general or customary principles of 
international law (Article 9 of Constitution). Rules provided for in international conve ntions, treaties 
and agreements  approved or ratified by Timor -Leste  applied  directly  in its internal legal system. 
All provisions  that were contrary to such rules  were invalid . 
62. In accordance with Article 123 of the Constitution, Timor -Leste judicial system was 
comprised of: (i) courts of general jurisdiction with the Supreme Court of Justice as the highest court 
of appeal ; (ii) tax and administrative courts  with the High Administrative, Tax and Audit Court  as 
the highest court of appeal ; and , (iii) military courts.  In addition, m aritime and arbitration courts 
could  be created . However, the Constitution prohibit ed the creation of special courts to judge certain 
categories of criminal offences. Courts were so vereign bodies, independent and subject only to 
the Constitution and the law  (Articles 118 and 119 of the Constitution) .  
63. The court system of Timor -Leste was still in transition from the  pre-independence court 
system to the court system envisaged under the Constitution. Thus , not all of the judicial institutions JOB/ACC/TLS/4  
 
- 22 - 
 
  described in the Constitution ha d been created. As such, the court syste m continue d to consist of 
four D istrict Courts (in Díli,  Baucau, Suai, and Oecussi ), and one Court of Appeal in Dili . These courts 
address ed all matters, i.e. civil, criminal, tax and administrative, and funct ioned as courts of first 
instance . The Audit Court  had been established in 2011 by Law No. 9/2011 of 17 August 2011 to 
supervise public finance and to ensure transparency in public accounts .  
-  Government  entities responsible for making and implementing policies affecting 
foreign trade  
64. As per the organigram of the VIII Constitutional Government, approved by the Decree Law 
No. 14/2018 of 17 August 2018, as amended by the Decree Law No. 27/2019 of 19 June 2019, trade 
and other trade -related issues fell under the responsibility of  Ministry of Tourism, Commerce, and 
Industry (MTCI) and Ministry of Agriculture and Fisheries which were both under the coordination 
by the Coordinating Minister for Economic A ffairs (MCAE).  
65. The Coordinating Minister for Economic Affairs (MCAE) supported the Prime Minister in 
the supervision of the economic policy and it was responsible for coordinating the execution of public 
policies related to economic development. MCAE dire ctly coordinated the following line ministries 
and sectors: (i) Ministry of Agriculture and Fisheries; (ii) Ministry of Tourism, Commerce and 
Industry; (iii) Secretary of State for Vocational Training and Employment; (iv) Secretary of State for 
Cooperative s; and (v)  Secretary of State for the Environment.   
66. Trade policy matters were the responsibility of the Ministry of Tourism, Commerce, and 
Industry (MTCI), which  was responsible for developing trade policies on an industry -wide basis, and 
policies related to tourism and commercial economic activities. It also had competence to develop 
legal frameworks  affecting supply of goods and services .  
67. The Ministry of Financ e (MF) had the responsibility  for drafting, executing, coordinating and 
assessing the policies for the  areas of annual budget and finance planning and monitoring. 
This include d general economic advice for the Government  and on the Government  tax policies. Laws 
affecting the levying of customs duties were administered by the Directorate General of Customs, 
which was a division of the Ministry of Finance, and ha d the responsibility to oversee Government  
policies relating to improving the administration of bot h imports and exports.  
68. The Ministry of Agriculture and Fisheries  (MAF)  had the responsibility for drafting, executing, 
coordinating and assessing the policies for the areas of agriculture, forestry, fisheries , livestock  and 
quarantine . This include d the responsibility for promoting and inspecting food production, including 
seeds , and to promote the development of fisheries and livestock industry. The Ministry of 
Agriculture and Fisheries was also responsible for phytosanitary measures.  
69. Laws governing  private  investment s (both foreign and national)  were administered by 
the Investm ent and Export Promotion Agency (TradeInvest Timor -Leste/TITL) , an agency that was 
under MCAE 's oversight . This agency , which was re -established through a Decree -Law No. 45/2015 
of 30 December 2015, was responsible for promot ing, facilitat ing, monitor ing and advocat ing for JOB/ACC/TLS/4  
 
- 23 - 
 
  private investments and exports  and serve d as a "one-stop-shop" service for private investments 
and exports in Timor -Leste.  
70. Laws pertaining to establishing legal entities were implemented by the Commercial 
Registration and Verification Service (SERVE), an agenc y that was  also under MCAE 's oversight . 
This agency was fully established under Decree -Law No. 7/2017, as a public institute  with the 
mission of execute and promote pol icies related to commercial registration and licensing procedures 
in order to facilitate business environment . 
- Division of authority between central and sub -central Government s 
71. Timor -Leste was a unitary state with one central Government  (Article 1 of the Constitution) . 
It was  divided into  12 Municipalities and one Special Administrative R egion.  Municipalities had been  
created by Law No.  11/2009 of 7 October 2009 , as amended by Law No.  4/2016 of 25 May 2016, 
although they were yet to become fully operational.  They were considered Autonomous 
Administration of the local Government, even though they did not yet have local legislatures , and 
were further divided into 67 Administrative Posts whi ch could  be sub-divided into Sucos 
(i.e., villages ). The central Government operate d administratively in all municipalities , according to  
Decree  Law No. 3/2016 of 16 March 2016 . It also define d the competence and functioning of  the local 
Governments (Article 72.2 of the Constitution). As local Governments, t he Municipal Authorities and 
Administrations implement ed the decisions of the central Governmen t at the loc al level, with some 
degree of  autonom y and overseen by the Ministry  of State Administration . While they  were yet  to 
be fully established , gradually,  it was anticipated that they would be directly elected by 
the respective constituencies, and become real local powers not depending hierarchically on 
the central Government. The respective  Law was being developed .  
72. In 2014, the National Parliament created the Oe -Cusse Ambeno Special Administrative 
Region and establis hed the Oecusse Ambeno and Ataúro Special Social Market Economy Zone aimed 
at creating the conditions to increase both foreign and local investment in those regions. 
The Administra tive Region 's executive bodies had been granted the regulatory, administrati ve, 
economic and financial powers, including concession of public services, supervision of certain sectors 
and expropriation in the public interes t, to pursue their objectives  (Law No. 3/2014 of 18 June 2014, 
as amended by the Law No. 3/2019 of 15 August 2019) . 
- Description of judicial, arbitral or administrative tribunal or procedures  
73. Since 2008,  Timor -Leste had in place administrative procedures that could  be used within 
the Administration before referring a dispute to a court (Decree Law No. 32/2008 of 
27 August  2008). Natural and legal persons were entitled to present a claim both befo re the public 
entity directly involved in the case and before the supervising authority. Administrative procedures 
regarding customs decisions were regulated by Articles 67 to 77 of the Customs Code  (Decree -Law 
No. 14/2017 of 5 April  2017).  JOB/ACC/TLS/4  
 
- 24 - 
 
  74. There were no judicial, arbitral or administrative courts or procedures to specifically deal 
with trade matters. Therefore , conflicts arising  with respect to such matters  were settled by 
the judicial courts.  
75. On 22 February 2021, the National Parliament had approved the Arbitration Law that had 
been designed based on the 2006 model of the International Arbitration Law recommended by 
the UN Commission on International Trade Law (UNCITRAL). This Law had created alternative means 
of resolving trade  disputes and was set to increase legal certainty and speed in resolving conflicts. 
It provided  a comprehensive set of procedural rules upon which parties could  agree for the conduct 
of arbitral proceedings arising out of their commercial disputes. He added that Timor -Leste was also 
a member State of the International Centre for Settlement of Investment Disputes (ICSID) and part y 
to the Convention on the Settlement of Investment Disputes between States and Nationals of Other 
States (ICSID Convention)  as provided for in t he National Parliament 's Resolution No. 14/2016 of 
31 August 2016 .  
IV. POLICIES AFFECTING  TRADE IN GOODS   
- Trading rights, registration requirements for engaging in importing  and exporting  
76. The representative of Timor -Leste  informed that Timor -Leste  did not have any specific 
applicable regulations requiring persons to register in order to engage in import/export activities. 
However, natural and legal persons importing/exporting on a commercial basis were required to 
obtain an authorization  (licence)  issued by the Registry and Business Verification Service (SERVE), 
in accordance with Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic 
Activities ". This legal framework applie d to natural and legal persons, domestic of foreign, aimed at 
obtaining the licensing for commercial activities regarding wholesale, retail, cumulative commerce, 
general commerce, imports, exports, services and other commercial activities not regulated by 
specific legislation.  
77. Annex es I to III of this Decree -Law set out  the types of business activities based on 
the lower, medium and higher risk criteria , as reflected in Annexes 7(A) to 7(C). Classification of 
activities followed international standards adopted by the United Nations Statistics Division 
(International Standard for Industrial Classification ). Importation of goods classified  under the lower 
risk w ould automatically be granted an authorization. For importation of goods classified under 
the medium or higher risks, importers were required to obt ain sectoral licen ces based on business 
activities. Article 10 of Decree -Law No. 16/2017 of 17 May 2017 on "Commercial Registr ation" set 
out the criteria and information requirements for obtaining a commercial licen ce.  
78. SERVE act ed as a single window by receiving applications from businesses. For medium - and 
high-risk business activities, there were specific licensing procedures set out by various Ministries 
and Agencies. In line with Decree -Law No. 34/2017, o nce applications  were received, SERVE sen t 
the documents to the relevant Ministries and Agencies to obtain an  authorization / licence  subject 
to the sectoral requirements.  Thus, while automatic import licensing system was controlled by a 
single entity, the  non-automatic import l icensing  system was controlled by sectorial Ministries or JOB/ACC/TLS/4  
 
- 25 - 
 
  Agencies.  Depending on the specific requirements by the line Ministries and specific steps that had 
to be implemented in the authorization process, this procedure could take up to one month.  Once 
business licences were issued , importation of goods could be made imm ediately.  
79. He added that for businesses considered to be medium or high -risk, additional applications 
for licences could apply, such as sectoral licensing (e.g. mining, infrastructures, aviation, tourism 
and recreational facilities, telecommunications, etc .), for being activities that require due diligence, 
environmental impact assessment, and other concerns, to safeguard health and safety issues and 
the environment . Thus,  Decree -Law No. 12/2004 of 26 May 2004 on "Pharmaceutical Activities" 
subjected import s of pharmaceutical products to health regulations, under the authority of 
the Ministry of Health. Article 3 of this Decree -Law determined that activities of import  (as well as  
storage, sales in bulk, sales in retail, and export of medicines for human use ) could only be exercised 
by entities duly registered in accordance with the applicable law for registration of businesses and 
duly licen ced by the Regulating Commission of Pharmaceutical Activities pursuant to this Decree -
Law, after consultation with the B oard of Management pursuant to sub -paragraph (d), item 1, of 
Article 22 of the Organic Statute of the Minist ry of Health .  
80. He also informed that a t the time of importation, the Directorate of Customs Authorit y 
require d all commercial importers /exporters  to prove they ha d a Timor -Leste Taxpayer Identification 
Number (TIN) . In addition, c ompanies had to  prove they were validly  incorporated. This requirement 
applie d to all individuals or companies that engage d in import/ex port activities on a commercial 
basis.  
81. Individual and Agency Entrepreneurs could apply for company registration at SERVE. There 
was no cost for businesses or sole traders and companies' registration. In line with Decree -Law 
No. 16/2017, t he following docu ments had to  be submitted: ( i) Act of Association (AoA); 
(ii) shareholders' IDs and, if married, proof of their marriage certificate and/or matrimonial property 
regime; ( iii) shareholders' taxpayer number (if any, otherwise it could  be attributed by SERVE at 
the time of registration); ( iv) identification of the corporate bodies; ( v) letters of acceptance for each 
member of the corporate bodies; ( vi) documents certifying that the company's capital has been 
deposited if it was mentioned in the AoA; ( vii) map depicting the location of registered offices; and 
(viii) certified copies of prior authorizations to conduct business, if applicable.  The business 
registration  was conducted  by SERVE in one to five business  days.  At the end of the process, 
the registration documents c ould be collected at SERVE: registration certificate, which indicates 
the business or sole trader's and company's registration number, t he tax identification number 
(TIN), the incorporation certificate and the business authorizations / licences.  
82. The representative of Timor -Leste added that his Government was revising the Law on  
"Licensing of Economic Activities " to simplify the licensing procedure, to make it less burdensome 
and bureaucratic , for implementation by the end of 2021 . JOB/ACC/TLS/4  
 
- 26 - 
 
  - Trade facilitation  
83. For Timor -Leste, trade facilitation was the tool for a ccess ing outside markets which wa s 
essential to propel growth . It was hence engaged on promoting trade facilitation policies aimed at 
making international trade easier and more efficient. It had  embarked on trade facilitation policies 
in 2016, with the establishment of the National Trade Fa cilitation Committee (Government 
Resolution No. 6/2016 of 17 February 2016), as a forum for consultative dialogue between 
the Government, the private sector and other stakeholders, such as development partners, to 
provide recommendation for reforms, with the ultimate goal to coordinate efforts and improve trade 
facilitation.  Among the  Committee 's responsibilities were: (i) to promote the analysis of procedures 
for import and export and to suggest the adoption harmonization and simplified meas ures; 
(ii) to coordinate public consultations and put together recommendations aimed at facilitating import 
or export; (iii) to support the Government in the implementation of the  legislative and procedural 
reforms to facilitate import and export;  and, (iv) to coordinate the work undertaken by all 
Government entities relate d to facilitation of import and  export. The list of members of 
the Committee is contained in Annex 8.  
84. The Government of Timor -Leste intend ed to modernize the country's customs framework  in 
order to improve import/export process in Timor -Leste , in the context of the ongoing efforts to 
modernize the economy and meet the WTO and ASEAN standards. With the assistance of 
the International Finance Corporation (IFC), the Customs  Authority  was working on a customs 
reform. The major goals of this reform were to reduce bureaucracy, increase transparency, and 
streamline the processes for import and export procedures.  In order to ach ieve these goals, 
the Government was implementing three main steps: (i) review of the customs legislative 
framework; (ii) integration of the quarantine and customs services systems (including their 
computer systems); and, (iii) public discussion in order t o allow stakeholder engagement during 
the implementation phase (Ministries, customs brokers, major importers, etc.).  
85. The customs reform process had started with the approval of the  2017 Customs Code 
(Decree -Law No. 14/2017 of 5 April 2017). The Code refle cted the political will of the Government 
of Timor -Leste in support of trade facilitation and was based on the Kyoto Convention of the World 
Customs Organization (WCO).  The Government therefore expected the Code to be in compliance 
with the WTO Trade Facil itation Agreement (TFA).  It define d customs procedures, adopt ed customs 
risk management and promote d integrity and transparency as agreed upon by the Arusha 
Declaration. It cover ed, namely: (i) customs control and supervision; (ii) areas subject to customs  
control; (iii) customs powers; (iv) customs duties; and (v) customs offenses.  The Code required for 
recruitment and training of professionals to implement it.  The Code had replaced the following laws: 
(i) previous Customs Code (Decree -Law No. 11/2004  of 19 May 2004); (ii) Decree -Law No. 9/2004 
of 19 May 2004 on "General Rules on the Import, Storage and Movement of Goods Subject to 
Selective Excise Tax"; (iii) Decree -Law No. 10/2004 of 19 May 2004 on "Tax and Customs Offences"; 
(iv) Decree -Law N o. 15/2005 on "Statute of Licen ced Customs Brokers"; and (v) Decree -Law 
No. 5/2007 of 13 August 2007 on "Regime of Customs and Customs Fund Emoluments".  The Code  
guided all subsidiary customs legislation that needed to be produced (see Annex 9).  JOB/ACC/TLS/4  
 
- 27 - 
 
  86. To furthe r detail the reform , Timor -Leste was developing a National Single Window, to be  
ultimately positioned as the link between an eventual single window of the Community of Portuguese 
Speaking Countries (CPLP) and the ASEAN single window, becoming a hub and pla tform that linked 
a market of over 2.4 billion people.  To this end , The Customs Code contain ed: 
i. Title V, Chapter I, dealing with Electronic Records and Payments based on United 
Nations Commission on International Trade Law (UNCITRAL) model laws ;  
ii. Article 79 that allowed the Customs Director General to request  specific documents or 
payments be transmitted in electronic form;  
iii. Article s 79 and 80 that allowed the National Director to authorize certain persons to 
lodge documents in electronic form or t o make payments electronically . It provide d the 
National Director the flexibility to modify the authorization in order to adapt to changes 
in technology;  
iv. Article 82 allow ed for electronic signatures, accompanied by a definition of an  electronic 
signature,  which was based on the definition in UNCITRAL model laws;  
v. Article 83 that provide d for the legal effect and enforceability of electronic documents 
and electronic signatures;  
vi. Article 84 that provide d for the legal effect of decisions made by the Office o f Customs 
through an automated system;  
vii. Article 85 that prohibit ed unauthorized access to the Customs computer systems;  
viii. Article 86 that allowed for the Director General to prescribe technical requirements 
relating to electronic records, electronic signatu res, and related control processes and 
procedures.   
The Government had adopted the Automated System Customs Data Administration software  as 
the technological platform for all customs procedures and documentation  (ASYCUDA -World , as 
determined by Government Resolution No. 24/2017 of 17 May 2017 , same as ASEAN) . Customs 
procedures were moving from being lodged on paper forms to online systems . The implementation 
of the National Single Window project had started in January 2020.  Full implementation was 
projected for end -2024.  The timeline for the implementation of the project is contained in Annex 10. 
87. The Office of the Director General of Customs at the Ministry of Finance was working on 
improving the computer facilities and Internet connections at all ports and the airport in order to 
allow for staff at those ports  to be able to make entries directly into the ASYCUDA system. Thus far, 
this include d work at the following posts: (i) Dili Sea Port, Dili Airport, Baucau Sea Port, Salele – 
Suai Sea Port, Oecusse Sea Port; and (ii) Land customs posts: Suai -Salele, Oecusse, Maliana.  
88. Under th e customs reform, through the "Integrated Customs and Quarantine Services" 
system, in addition to th e Database of Importers  which already existed in Timor -Leste, 
the Directorate General of Customs and the IFC also aimed to create an  integrated system that 
reduced the bureaucratic burden and increased the exchange of information between the Customs 
Author ity, Quarantine Services and other relevant Government services , to enable importer/exporter 
to interact with a single administrative authority throughout the entire import/export process.  It was 
expected that, once ASYCUDA -World was implemented, all infor mation regarding goods that 
require d licences would be stored in the respective database.  JOB/ACC/TLS/4  
 
- 28 - 
 
  89. The Office of the Director General of Customs, with the assistance of the IFC, was seeking 
to improve the system for giving advance clearance of cargo. As part of this project, IFC was also 
attempting to improve the capacity of the Office of Quarantine to operate a system for advance 
clearance of cargo. This project include d efforts to  establish internal procedures for monitoring 
instances in which there was some interruption to clearance subsequent to advance clearance having 
been granted.  
90. In response to a question from a Member on the Government's intention to use Time Release 
Studies  (TRS) to identify bottlenecks in import and export procedures , the representative of 
Timor -Leste agreed that t he WCO Time Release Study was an internationall y-recognized tool to 
measure the actual time required for the release and/or clearance of goods, w ith a view to finding 
bottlenecks in the trade flow process and taking necessary measures to improve the effectiveness 
and efficiency of border procedures. The Government of Timor -Leste, through the Customs 
Authority, w ould publicize the information and pu blish the corresponding policy and operational 
measures to further improve trade facilitation at the border.  
91. In response to a question about Timor -Leste's  intention to implement the TFA and  to 
categorise its future commitments under the A, B and C categori es, the representative of Timor -Leste 
confirmed that his Government had committed to adhere to the TFA by implementing the ASYCUDA 
World System since April 2017 to expedite the movement, release and clearance of goods.  
Nevertheless, recognizing Timor -Leste 's status as an LDC , full compliance with the TFA w ould require 
strengthening the necessary legal/policy provisions, procedures, infrastructure and human capital.  
Timor -Leste's proposed categorization of its TFA commitments is provided in Annex 11. 
A. IMPORT  REGULATIONS  
- Ordinary customs duties  
Timor -Leste submitted an initial offer on goods  in May 2021 (see document WT/ACC/SPEC/TLS/ 2). 
92. The representative of Timor-Leste  informed that, according to Decree -Law No. 8/2008 of 30 
June 2008  "Taxes and Duties Act ", his Government  provide d for a flat import duty rate of 2.5% ad 
valorem  on all imported goods, regardless of the ir classification.  
93. In accordance with the Customs Code of Timor -Leste  (Decree -Law No.  14/2017 of 5 April  
2017), the Customs Tariff of Timor -Leste comprise d the Nomenclature of Goods in accordance with 
the International Convention on the Harmonized Commodity Description and Coding System (HS)  
of the World Customs Organization  (WCO) . As such, since a flat import duty rate of 2.5% was 
applied, there were no other taxes, fees and charges set in relation to each tariff line. Currently, 
Timor -Leste 's Directorate General of Customs use d the Tariff Nomenclature in HS 20 17.  
- Other duties and charges  
94. The representative of Timor -Leste informed  that Timor -Leste d id not apply any other duties 
and charges within the meaning of Article of Article II:1(b)  of the GATT 1994.  JOB/ACC/TLS/4  
 
- 29 - 
 
  - Tariff quotas, tariff exemptions  
95. The representative of Timor -Leste informed  that Timor -Leste d id not apply any tariff quotas 
and d id not intend to apply any quantitative limits on the volumes of imports . 
96. The Taxes and Duties Act provide d for a list of goods that were exempted from import duty. 
This list include d exemptions for goods: (i) of a non -commercial nature below a threshold val ue 
imported by travellers ; (ii) imported under diplomatic and United Nations (UN) exemptions; 
(iii) imported by charitable organizations; (iv)  temporary imports; and (v) a few others, as detailed 
in Annex 12 .  
97. Additionally, t he Customs Code also provide d for relief from import duties for goods, not 
being of a commercial character, and falling within one of the 11  following  categories :  
i. Goods that constitute d personal items and household effects imported by individuals 
transferring their residence, on a de finitive basis, to the customs territory of 
Timor -Leste, provided that such goods ha d been in the custody of such individuals and 
that, where they were durable goods, ha d been utilised by the same individuals in their 
previous habitual residence for at lea st six months before the date on which they 
abandoned such residence in the third country of departure and that such goods were 
intended for use for the same purposes in their new habitual residence;  
ii. Movable goods, layettes and gifts imported on the occas ion of a wedding, provided that 
they belong ed to one or to the two members of the couple that, as a consequence of 
the wedding, transfer red their habitual residence to Timor -Leste;  
iii. Personal goods acquired by succession;  
iv. Shipments sent from private indivi duals to private individuals, of insignificant value, 
which were sent directly from a foreign country to an addressee in Timor -Leste;  
v. Goods contained in the personal luggage of travellers, provided that they  were 
occasional importations and were devoid of  commercial character, the limits of which 
were laid down in the Decree -Law No . 10/2003 of 22 July  2003;  
vi. Instruments, objects, scientific apparatuses and other instruments of educational, 
cultural or pedagogical character intended for public establishments or bodies, or public 
utilities, as long as these entities were legally recognised as such and the import ations 
were authorised by the Minister of Planning and Finance or his or her representative;  
vii. Gifts received in the framework of international relations, provided that such gifts ha d 
been imported by people who ha d made an official visit to a foreign country or by people 
who visit ed Timor -Leste and br ought  gifts for the authorities hosting them, or that such 
gifts were sent as a sign of friendship to a public authority, to a community, to a body, 
or to groups undert aking activities of public interest ;  
viii. Goods constituting gifts offered to Heads of State or to people enjoying similar 
prerogatives in the international arena, or goods intended for use or for consumption 
during the official stay of foreign Heads of State,  within the limits and conditions to be 
established by the  Customs Authorit y; 
ix. Machines and apparatuses imported solely for exhibitions and fairs, as well as materials 
intended to assembly or decorate provisional pavilions in fairs or exhibitions;  
x. Prospect s, brochures, books, magazines, guides, maps or photographs intended to 
promote tourism; or 
xi. Publications from foreign Government s and international organisations intended for free 
distribution as well as documents sent free of charge to public services .  JOB/ACC/TLS/4  
 
- 30 - 
 
  98. In response to Member's question in relation to category (iv) that refer red to shipments of 
insignificant value , he clarified that Article 278(2) of the Customs Code refer red to goods without 
commercial value , i.e.,  whose value d id not exceed the statistical threshold, as defined in the Tax 
Law. The Government, through the VAT Commission, ha d revised the VAT Law with a possibility to 
set the threshold value of US$ 50 0. This draft law was in the pipeline for the Government 's approval  
towards the end of 2021.  
- Fees and charges for services rendered  
99. The Directorate General of Customs collect ed fees and charges for services rendered in 
accordance with the Customs Code , which establishe d the regime of customs and customs fund 
emoluments, as provided in Annex 13 .  
100.  Article 66 of Decree -Law No. 21/2003  of 31 December 2003  "On Quarantine and Sanitary 
Controls on Goods Imported and Exported" authorize d the Ministry of Agriculture an d Fisheries and 
the Minist ry of Finance to issue a joint Ministerial Statute defining the service fees for granting import 
licences, issuance of certificates or any other fees for services.  To date, no action had been taken 
on introducing such fees.  
-  Quantitative import restrictions , including prohibitions, quotas and 
licensing  systems  
101.  The representative of  Timor -Leste informed that,  as elaborated in section "Sanitary and 
phytosanitary measures",  for public health reasons, the importation of the following products was 
prohibited: (i) any proteins for animal feeding containing meat powder, bone powder, blood powder, 
or fat from mammal tissues; (ii)  poultry powder for ruminant feeding; (iii) any products from cows, 
sheep, or goats showing clinical signs of spongiform encephalopathy; (iv) any animals or any 
products of any animals showing clinical symptoms of certain diseases including, f or example, foot -
and-mouth disease and bird flu; and (v) non -transformed fat.  Importations of: (i) items listed in the 
Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES, Article 
72); (ii) items originating from a countr y or areas where there was an ongoing occurrence of 
quarantine -related plagues or diseases (Article 72); and (i ii) exotic seeds included in a list to be 
approved by a Ministerial Diploma (Article 82)  were also prohibited. There were no other quantitative 
import restrictions, including prohibitions and quotas.  
102.  In response to Member's question, the representative of Timor -Leste confirmed that there 
were no quantitative restrictions on the import of alcohol ic beverages, including spirits, wine and 
beer. At the  same time, the Annual Budget Law for 2021 (Law No. 14/2020 of 29 December 2020, 
as amended by Law No. 8/2021 of 3 May 2021)  specified excise taxes on alcoholic beverages, as 
described in section "Application of Internal Taxed to Imports".  
- Import licensi ng procedures  
103.  The re presentative of Timor-Leste  informed that his Government  did not operate a ny general 
system requiring licen ces in order to import goods. At the same time , legal and natural persons JOB/ACC/TLS/4  
 
- 31 - 
 
  importing goods on a  commercial basis were required to obtain a  business  authorization  (licence)  
under Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities" , as 
described in section on " Trading rights, registration requirements for engaging in importing and 
exporting" . He added that the information on the existing licensing regime was detailed  in document 
WT/ACC/TLS10.  
104.  A Member asked to provide  information on the roles of the ministries and agencies involved 
in the licensing process, as well as  the procedures for how Timor -Leste handled import and 
export -related emergencies (i.e., a denial of imported goods into the country). The representative 
of Timor -Leste said that i n any situation of import and export -related issues, including emergencies, 
there were several Ministries with authority to deny imports of goods into the country, or exports  
from the country , whose legal procedures were detailed in relevant  Decree -Laws according to 
the structure established by Decree -Law No. 14/2018 of 17 August 2018, "Organic Law of the 
VIII Constitutional Government of Timor -Leste" . These were: (i) Ministry of Agriculture and Fisheries 
(animal and plant products ), (ii) Ministry of Health (pharmaceutical products), (iii) Ministry of 
Defence (explosive products for civil construction, oil and mineral activities), (iv) State Secretary for 
Environment (refrigerators), and (v) Ministry of Transport and Telecommunicati ons (motor vehicles) .  
105.  He added  that the Customs Authority operate d under the Ministry of Finance and was 
regulated by Decree -Law No. 2/2020 of 8 January 2020  on "Organic Law of the Customs Authority 
(CA)" . Article 3 of the Decree -Law determine d that the Customs Authority  had the general mission 
of exercising control over the entire national customs territory for tax, economic and social protection 
purposes, namely in the field of public safety, environment, culture and health, as well as 
administering  tax collection and customs and other fees that are legally committed.  The Customs 
Authority enforced the Customs Code which establishe d the general rules and procedures for the 
import and export of goods  (including denial of imported goods in the country) , their movement and 
use in the customs territory, the control of passengers and the Customs' administrative and 
enforcement powers. (Article  1.1 of the Code ). Customs powers were detailed in Title III of the Code. 
106.  As described in section on "Sanitary and phytosanitary measures", by force of Article 1 of 
Decree -Law No. 21/2003 of 31 December 2003 on "Quarantine and Sanitary Control on Imported 
and Exported Goods", the imports of plant and animal products were subject to the quarantine 
regulations. The Direc torate of Quarantine Services  and Biosecurity  under the Ministry of Agriculture 
and Fisheries dealt with the issues related to the monitoring of the implementation and compliance 
with laws and regulations , applicable to phyto - and zoo -sanitary control and quarantine , including 
issuance of import permits . Per Article 14  of the Decree -Law, t he following items were be subject to 
import permits : (i) live animals; (ii) live plants; (iii) animal or vegetal products as specified by law; 
(iv) any other good, or merchandise, animal or vegetal organism as specified by law.  
107.  Licensed i mports (as well as manufacture, import, export, trade, transport and use) of a rms 
and explosives  were subject to licence and prior inspections which were carried out with suppo rt 
from the National Police of Timor -Leste (PNTL), according to Article 20(c) of Decree -Law No. 9/2009 
of 18  February  2009 and Decree -Law No. 7/2020 of 19 February 2020 on Import, Transport, JOB/ACC/TLS/4  
 
- 32 - 
 
  Storage, and Use of Explosive Products for Civil Construction, Pe troleum and Mineral Activities . 
The PNTL operate d under the Ministry of the Interior.  
- Customs valuation  
108.  The repre sentative of Timor -Leste informed that the  Customs Code (Decree -Law 
No. 14/2017 of 5 April 2017)  provide d for customs valuation in Title VII, Chapter IV  on the "Value 
of Goods for Customs Purposes" , comprising Articles 97 to 101  and Schedule I, which closely followed 
the rules in the WTO Agreement on Customs Valuation, including its interpretative notes . 
The requirement  of the Customs Code was to use transaction value where ver possible , while making 
allowance for situations in which the invoiced price appear ed to be inauthentic. Where the value of 
an imported good as indicated in the invoice was lower than the fair market value of the same good, 
the C ustoms Authorit y could  calculate the fair market value of the transaction by referring to the 
value of similar transactions among parties operating on a commercial basis (Article 97.1 ). Articles 
92.2 and 92.3 provide d for adjustments to the transaction value in line with Article 8 of t he WTO 
Agreement on Implementation of Article VII of the GATT 1994 (WTO Agreement on Customs 
Valuation).  The Government of Timor -Leste was taking steps so that its customs valuation l aw and 
practice operate d in a manner fully consistent with the WTO Agreement on Customs Valuation. 
The Directorate General of Customs had impleme nted an advance ruling system through which 
traders c ould request a ruling with regard to the application of customs valuation criteria for 
a particular case in accordance with the provisions of the WTO Agreement on Customs Valuation. 
Detailed  information on the implementation and administration of the WTO Agreement on Customs 
Valuation is contained in document WT/ACC/TLS/8.   
109.  A Member asked to  clarify the meaning of "fair market value" and "value of similar 
transactions among parties operating on a commercial basis" . With respect to situations in which 
the invoiced price appear ed to be inauthentic and the Customs Authorit y could  calculate the f air 
market value of the transaction by referring to the value of similar transactions among parties 
operating on a commercial basis , a Member enquired if this c ould be the cause to deny 
the transaction value method or not.  The representative of Timor -Leste clarified that  Article 97 
provided that the customs value of the goods was the transaction value, i.e. the price actually paid 
or payable for the goods when they were sold for export to the country of importation . When 
the Customs Authorit y had a reason to doubt the truth or accuracy of the declared customs value 
and, after having attempted to obtain a further explanation or evidence that the declared customs 
value represented the total amount paid or payable for the impor ted goods, Clause 2(5), Schedule 
I required the Customs Authorit y to determine the customs value of the goods through 
the sequential use of the following methods of valuation: (i) transaction value of identical goods 
(Clause 4); (ii) transaction value of s imilar goods (Clause 5); (iii) deductive value (Clause 6); 
(iv) computed value (Clause 7); (v) residual research basis (fallback, Clause 8). Pursuant to Clause 
2(6) of Schedule I, at the written request of the importer addressed to the Customs Authorit y, 
the order of application of Clause 6 (deductive value) and Clause 7 (computed value) may be 
reversed. He  added his Government welcome d indications for improvement of the Customs Code, 
to ensure  full compliance with the WTO Customs Valuation Agreement.  JOB/ACC/TLS/4  
 
- 33 - 
 
  110.  A Mem ber further asked if the Government of Timor -Leste intend ed to adopt additional 
legislation concerning the valuation of lost or damaged goods . The representative of Timor -Leste 
confirmed that Schedule I of the Customs Code d id not define any special provisions or practical 
arrangements on the valuation of lost or damaged goods. However, there were general principles 
defined in Article 201(2) of the Code that the authorized warehouse keeper was be responsible for 
the payment of the duties and other charges relating to missing goods, namely by theft or robbery, 
without prejudice to the possible procedure for tax violation, under the law.  He confirmed that his 
Government intended to develop legislation concerning the valuation of l ost or damaged goods.  
111.  A Member underlined that Article 10 of the WTO Agreement  on Customs Valuation provided 
that all information which was provided on a confidential basis for the purposes of customs valuation 
could  not be disclosed by the Customs Authori ty without the specific permission of the person except 
to the extent it was required to be disclosed in the context of judicial proceedings. Accordingly, a 
Member asked to  clarify which laws  of Timor -Leste  provide d an exception to the  confidentiality 
requirement per Article 17.3 of the Customs Code. The representative of Timor -Leste responded 
that, a ccording to Article 17 of the Code, customs officers were bound to professional confidentiality 
regarding confidential facts, information and documents that be came known to them while 
performing their duties. The confidentiality obligation cease d when the  disclosure of facts, 
information or confidential documents ha d been expressly authorized by the  person or entity that 
provided them , or when ordered by court i n judicial proceedings or required by another authority 
duly mandated by law (Decree -Law No. 19/2009 of 8 April 2009 "Penal Code"; Law No. 17/2011 of 
28 December 2011 on "Anti -Money Laundering and Counter Financing of Terrorism").  
112.  A Member enquired if Article 69  of the Customs Code provided for  the right of appeal without 
penalty in accordance with Article 11.1 of the WTO Agreement on Customs Valuation . 
The representative of Timor -Leste confirmed that this was the case. An appeal  could  first be made 
to a higher level in the customs administration, but the importer had the right in the final instance 
to appeal to the judiciary.  
113.  With reference to Article 172.2( b) of the Customs Code, a Member asked what other charges 
may be payable on the goods.  The representative of Timor -Leste responded that a ll charges that 
were payable on the goods include d: customs duties, sales tax and excise duties (only applicable to 
the goods listed in Annex II of Taxes and Duties Act No. 8/2008) , as described in relevant sections 
of this Factual Summary . There were no other cha rges. 
114.  A Member asked to clarify whether  Decision 3.1 on the Treatment of Interest Charges in 
the Customs Value of Imported Goods applie d regardless of whether the finance was provided by 
the seller, a bank or another natural or legal person , and whether it applie d where goods were valued 
under a method other than the transaction value.  The representative of Timor -Leste informed that 
according to Clause 1(5) of Schedule I of the Customs Code, interest on a financial agreement 
concluded by the buyer relating to the purchase of imported goods could  not be considered as part 
of the customs value in any case where:  (i) the interest rates were different from the price actually 
paid or payable for the goods;  (ii) such goods were actually sold at the price stated as the price JOB/ACC/TLS/4  
 
- 34 - 
 
  actually paid or payable;  and (iii)  the buyer, if required, c ould demonstrate that the financial 
agreement was concluded in writing . The declared interest rate d id not exceed the value practiced 
at that time for such transactions in the country where the financing was granted.  
115.  A Member asked to identify provisions imple menting Articles 1.2(a) and 1.2(c) of the  WTO 
Agreement on Customs Valuation  concerning related parties. The representative of Timor -Leste 
responded that according to Clause 2(3) of Schedule I of the Customs Code, w hen the Customs 
Authority was  of the opin ion that the relationship between the buyer and seller of any goods 
influence d the price paid or payable for the goods, the Customs Authority notified the importer in 
writing requesting for the reasons that made it form such an opinion, giving the importer  
a reasonable chance to present documentation to Customs that prove the relationship did not 
influence such price.  
116.  A Member further asked to identify provisions which implemented Article 6.2 of  the WTO 
Agreement on Customs Valuation concerning computed value of appraisement. The representative 
of Timor -Leste responded that Schedule I of t he Customs Code  did not define provision for requiring 
or compelling any person not resident in its own territory to produce for examination, or to a llow 
access to, any account or other record for the purposes of determining a computed value. Clause 
7(4) of Schedule I provide d that the amount of profit and general expenses required to determine 
the computed value of goods had to  be calculated on a perc entage basis and determined on the  basis 
of the information prepared in a manner consistent with the generally accepted accounting principles 
of the country of production of the goods, which was provided by or on behalf of the importer of 
the goods subject  to assessment. When the information provided was not sufficient, the Customs 
Authorit y could  obtain sufficient information by verifying the sales for export to Timor -Leste of 
the more specific group or variety of goods of the same class or type of goods t o obtain more 
information.  
117.  A Member noted that Article 14 of the WTO Agreement on Customs Valuation stated that 
the Interpretative Notes at Annex I and the notes in Annexes II and III form ed an integral part of 
the Agreement , and that articles of the Agree ment we re to be read and applied in conjunction with 
their respective interpretative notes. However,  it did not appear that all of the Interpretative Notes 
had been implemented in the Customs Code  of Timor -Leste . A Member enquired h ow and when the 
Governme nt of Timor -Leste intend ed to incorporate all Interpretative Notes into its legislation . 
In response, the representative of Timor -Leste said that, in his view, t he Interpretative Notes were 
fully reflected in Schedule I of the Code, to ensure their common understanding and proper 
implementation.  
- Rules of origin  
118.  The representative of Timor -Leste informed that his Government did not apply rules of origin 
as its measu res affecting imports d id not discriminate between imported goods based  on their origin. 
Same  import  customs  duty rates  applied to all products regardless of their source . The Directorate 
General of Customs determine d the payable duty by valuat ing the good s and d id not need to JOB/ACC/TLS/4  
 
- 35 - 
 
  determine the country of origin of the goods. Accordingly, the Taxes and Duties Act  did not contain 
any rules for determining the origin of goods.  
119.  Articles 94 to 96 of the  Custo ms Code (Decree -Law No. 14/2017  of 5 April  2017) contained  
general rules of classification of goods by country of origin and requirements for certification of 
origin. Government of Timor -Leste was keen to comply with the provisions of the WTO Agreement 
on Rules of Origin, and was planning to develop , with technical assistance  support , the domestic 
legal framework for that.  
120.  He added that certificates of origin were requested for the importation of goods subject to 
SPS requirements, as described in section on "Sanitary and phytosanitary measures".  
- Other customs f ormalities  
121.  The representative of Timor -Leste added that Timor -Leste was a member of the World 
Customs Organization  (WCO) , since 19 September 2003. It  was not yet a party to the  International 
Convention on the Simplification and Harm onization of Customs Procedures , as amended on 
3 February 2006 ( Revised Kyoto Convention) but base d its customs practice s on international 
standards  such as  ones established by this Convention.  
- Pre-Shipment inspection  
122.  Timor -Leste d id not operate a system for conducting pre -shipment inspection and ha d no 
plans to do so, as it was putting in place a trade facilitation system in a ccordance with ASEAN 
standards, WTO and WCO requirements .  
- Application of i nternal taxes on imports  
123.  The followi ng taxes were applied in Timor -Leste : (i) income tax, (ii) services tax, (i ii) excise  
tax, ( iv) sales tax, and (v) withholding tax . The latter three taxes were applied to imports and 
collected at the time of importation.  
124.  Excise tax was charged on products listed in Schedule II  of the Taxes and Duties Act . The list 
include d: (i) alcoholic beverages, including stout beer with an alcohol content of less than 4.5% 
(US$ 2.50/liter), malt beer with other alcohol content  (US$ 3.50/liter ), wine, vermouth and other 
fermented beverages (US$ 3.50/liter ); (ii) ethylic alcohol (US$ 8.90/lit er); (iii) t obacco and tobacco 
related products  (US$ 19.90/kilogram ); (iv) g asoline, petroleum and other related petroleum 
products (US$ 0.60/lit er); (v) l uxury cars  (35%) ; (vi) a rms and munitions  (200%) ; (vii) l ighters for 
smokers  (12%) ; (viii) s moking pipes  (12%) ; and (ix)  recreational b oats and private aircrafts  (20%) . 
Tax rates  for (i) and (vi)  were set in Annual Budget Laws.   
125.  According to Articles  10.1 and 10.2 of the Taxes and Duties Act, excise tax was equally 
charged on both locally  manufactured  and imported products. For locally manufactured products, 
the excise tax was payable when  the goods were removed from a registered manufacturer 's 
warehouse . For imported goods, the excise tax was payable at the time of release of the imported JOB/ACC/TLS/4  
 
- 36 - 
 
  products into circulation. G oods exported from Timor -Leste within 28 days after their production or 
import were not subject to excise tax . To be exempted from the tax , a taxpayer had to  submit to 
documentation proving th e export of the said goods to the Central Bank of Timor -Leste (CBTL). 
It was anticipated that the excise tax w ould be maintained as part  the ongoing Fiscal Reform.  
126.  Sales tax was charged  on sales of goods and services by persons whose monthly turnover 
excee ded the threshold specified in Schedule III  of the Taxes and Duties Act  - which was zero as 
the Schedule d id not specify a threshold. Article  15 and Schedule III of the Act  provide d that the tax  
applie d to: (i)  taxable goods imported into Timor -Leste (2.5% ); (ii ) taxable goods sold in 
Timor -Leste on or after the date to be specified by the National Parliament  (0%); or (iii) taxable 
services provided in Timor -Leste on or after the date to be specified by the National Parliament  (0%). 
For imported goods, the sales tax was payable at the time of release of the imported products into 
circulation . Goods exempted from import duties under the Taxes and Duties Act, or subject to total 
or partial exemption  under the Customs Code, as specified in paragraphs [96] and [9 7], were exempt 
from sales tax under Article  16 of the Taxes and Duties Act.  
127.  The representative of Timor -Leste added that his  Government  was aware that the provisions 
on the sales tax imposed on imported products , but not on locally produced goods , were inconsistent 
with the national treatment requirement in Article III of the GATT 1994. It was anticipated that 
the ongoing Fiscal Reform w ould replace the sales tax with a value -added tax  (VAT)  which would be 
levied equally on both imported and locally produced goods.  
128.  Payments made by resident entities for goods acquired from non -resident suppliers were 
subject to a 10% withholding tax ( "WHT") from the gross amount of the payment, as provided in 
Article 57 of the Taxes and Duties Act.  This discrimination was also being revised under the new VAT 
regime, since it violate d Article III of the GATT 1994 on non -discriminatory application of taxes.   
129.  With respect to the VAT, the representative of Timor -Leste clarified that  it was 
the Government 's intention to introduce this tax as part of the ongoing Fiscal Reform by revising 
Law No. 8/2008 of 30 June 2008 on "Taxes and Duties Act" and approving a new  VAT Law, aiming 
at achieving  the following objectives: (i) moderniz ing the tax system and improv ing tax  collection, 
by generating information on the key elements of value added (wages and profits) and  improving 
record keeping;  and (ii) rais ing revenue more  efficiently, by reducing the number of tax instruments 
that the Government  has to manage in order to collect a given level of revenue. In so doing, 
Timor -Leste would consider replacing  the sales tax, the withholding tax and the service tax with the 
VAT; (iii) creating a level -playing field and reduc ing the cost of doing business, through its incidence 
on consumption and creating incentives for compliance that were even across all sectors of the 
economy; (iv) improv ing the business environment and attract ing investment, by inducing increased 
transparency in  transactions  and turning the country into a de-facto tax-free zone for exports;  and 
(v) reduc ing informality in the economy, by granting credit/refund mechanisms to the  informal 
sector . Such mechanisms would serve as incentives for the informal sector to come into the VAT  net. 
Efficient coverage of the value chain w ould be ensured , and the threshold would be set at the 
adequate level.  JOB/ACC/TLS/4  
 
- 37 - 
 
  130.   To meet the se objectives, the Government of Timor -Leste was considering a relatively 
simple VAT system, comprising the followin g characteristics: (i)  a consumption -based VAT, with 
the tax falling on final consumers, inc luding issuance of credits to businesses for taxes paid on 
the purchase of capital goods; (ii) covering all goods and services  that enter into the value chain, 
thus realizing the full incentive effect, with full information to be able to make refunds or cr edits on 
exports; (iii) single rate for VAT, to avoid "cheating" and ease complexity of administration; 
(iv) zero-rating limited to exports, working as a tool to attract FDI and turning Timor -Leste into 
a duty-free zone; and, (v) exemption limited to non -processed foods, which do not enter the value 
chain and can therefore be exempted, benefiting more than 60% of most vulnerable families' 
consumption in Timor -Leste.  
131.  In response to Member's question, he added that t he legislative process for approval of 
the VAT Law had started back in 201 7. Since December 2020 , that a joint fiscal and public financial 
management reform package was being  revisited  by the Ministry of Finance through the Tax 
Authority. It planned to seek opinions, comments and feedback from the public, including from legal 
firms, on the draft law prior to its submission to the Council of Ministers and the National Parliament 
later in  2021. The action plan for revision of the Taxes and Duties Act and approval of the VAT Law 
is contained in Annex 14.  
- Anti-dumping, countervailing duties, safeguard regimes  
132.  The representative of Timor -Leste informed that Timor -Leste d id not have any anti -dumping , 
countervailing duties or safeguard  regime . There was political will of the Government  to engage and 
comply with the provisions of the WTO Agreement on Implementation of Article VI of the GATT  1994 
(Anti-dumping Agreement) , the WTO Agreement on Subsidies and Countervailing Measures  (SCM 
Agreement)  and the WTO Agreement on Safeguards . Legislatio n on trade remedy  measures w ould 
be adopted following technical assistance support.  
133.   A Member requested the Government of Timor -Leste to commit not to impose any 
antidumping, countervailing or safeguard measures, including the initiation of any investigati ons, 
until its authorities and legislation were notified to the appropriate WTO Committees.  
The representative of Timor -Leste responded that as Timor -Leste d id not have any anti -dumping, 
countervailing or safeguard framework  in place, any policy decision s on such actions could be taken  
once the appropriate , WTO -consistent  legislation was enacted.  
B. EXPORT REGULATION  
- Customs tariffs, fees and charges for services rendered , application of internal 
taxes to export s  
134.  The representative of Timor -Leste informed that t here were no laws imposing export duties 
and taxes. The Government  of Timor -Leste  did not  intend  to introduce  duties and taxes on exports 
as part of  the Fiscal Reform. The was an administrative fee of US$ 1.00 per export transaction.   JOB/ACC/TLS/4  
 
- 38 - 
 
  -  Quantitative export restrictions , including prohibitions, quotas and licensing 
systems  
135.  There were no laws imposing quantitative export restrictions, prohibitions or quotas. 
This policy was expected to be maintained in future, as the Government of Timor -Leste was working 
on a draft  Export Promotion Law  as part of the country 's investment policy.  
136.  Natural and legal persons exporting on a commercial basis were required to  register 
according to  Decree -Law No. 16/2017 of 17 May 2017 on "Commercial Registration " and to  obtain 
an authorization according to Decree -Law No. 34/201 7 of 27 September 2017  on "Licensing of 
Economic  Activities ", as described in section on "Trading rights, registration requirements for 
engaging in importing and exporting" . 
- Export subsidies  
137.  The representative of Timor -Leste informed that t here were no export financing, subsid y or 
export promotion measures in force. However, t hese types of measures could  be introduced in future 
economic policy and statutes aimed at stimulating exports . The Government was working on 
an Export Promotion Law and respective regulations , based on WTO standards. If introduced, such 
measures would comply with the WTO Agreement on Subsidies and Countervailing Measures (SCM 
Agreement). He further informed that t here were no laws imposing minimum export prices, 
voluntary export restrictions, or orderly marketing arrangements.  
138.  He further informed that Section II, Articles 242 to 243  of the Customs Code (Decree -Law 
No. 14/2017 of 5 April 2017 ) set forth a customs duty drawback regime . Under this regime,  
the customs charges paid when import ing raw materials, semi -finished products, components, and 
other separate parts and pieces intended for industrial transformation or incorporation into 
manufacturing, were refunded when the final product was exported . Only duly authorized operators  
(customs brokers) , as determined by the Director General of Customs,  were allowed to import goods 
under this regime . According to Article 32.1, Article 34.1(a -e) of the Code, they were required to : 
(i) have valid customs broker licen ce issued by the Director General of Customs; (ii) have a TIN 
number; (iii) prove that they ha d no outstanding debt, and (iv) prove that they had not been 
convicted in any criminal proceeding or for tax offences . Article 38 require d customs  broker s to 
submit a bond of a minimum of US $ 10,000 and a maximum of US$  150,000.  
C. INTERNAL  POLICIES  AFFECTING  FOREIGN TRADE IN GOODS  
- Industrial policy , including subsid ies 
139.  The representative of Timor -Leste informed that his Government aimed to promote 
manufacturing as one of the five priority sectors of the economy. However, the use of the US$, 
relatively high minimum wages and the high cost  of infra structure provide d obstacles to 
manufacturing development in Timor -Leste . In the medium -term, manufacturing development 
would focus on developing industrial capacity by adding value to agricultural products and attracting 
investment in food processing and beverage manufacturing aimed at the domestic market, such as JOB/ACC/TLS/4  
 
- 39 - 
 
  coffee, cand lenut and forestry products. For this, since 2017 t he Government  had been develop ing 
an Industrial Policy and Action Plan to promote manufacturing.  This Policy , considered for approval 
by the Council of Ministers, w ould be shared with the Working Party as soon as it was finalized.  
The representative of Timor -Leste confirmed that t he Policy would not include any subsidy or tax 
incentives to promote manufacturing in particular sub -sectors .  
140.  A Member asked how the Government of Timor -Leste envisage d developing the processing 
of agricultural  products  and how it planned to encourage investment in food processing and beverage 
manufacturing . In response, the representative of Timor -Leste referred to Chapters III, V and VI of 
the Private Investment Law (Law No. 15/2017 of 23 August 2017 ) which addresse d the rights and 
guarantees, and special and fiscal benefits provided  to investors , as described in section "Investment 
regime" . These benefits  were provided to investors in both agriculture and manufacturing (including 
food processing).  By Decree -Law No. 45/2015 of 30 December 2015, the Government had also 
re-established the Investment and Export Promotion Public Agency (TradeInvest Timor -Leste, TITL ) 
as a one -stop-shop for private investments.  
141.  For beverage manufacturing, he also referred signing of signing in 2015 of a Special 
Investment Agreement between the Government and Heineken Asia Pacific . The agreement, that 
was worth US $ 40 million, include d benefits and long -term leasing arrangements, opening the way 
for Heineken to build a beverage production plant that manufactures a range of soft drinks, beer, 
and mineral water, with 200 direct and 800 indirect jobs. Timor -Leste  remain ed attractive to mo re 
investments in the beverage industry.  
- Technical barriers to t rade, standards and certifications  
142.  The representative of Timor -Lest informed that there were no technical regulations , 
standards and c onformity assessment procedures in place, such as testing, inspection or 
certification, either for domestic or imported goods.  However, the Government was interested in 
developing and approving such standards to ensure conformity with the WTO Agreement on 
Technical Barriers to Trade (TBT Agreement)  and the respective ASEAN agreement.  
143.  In response to a question from a Member on the Government's plans for the dev elopment 
of the necessary legislation and regulations to comply with the TBT Agreement , he informed that 
the Government was in the process of building the legal and institutional framework, which w ould 
include appropriate legislation, technical regulations, standards and conformity assessment 
procedures , in conformity with the TBT Agreement , as well as  the establishment of an Inquiry Point 
and a Notification Authorit y as transparency mechanisms required  by the TBT Agreement . The Action 
Plan for the Implementation of the TBT Agreement is provided in document WT/ACC/TBT/11.  
144.  He added that, a s part of these efforts , the National Quality Control Institute ( NQCI ) had 
been created by Decree -Law No. 10/2018 of 9  April 2018 as the national regulatory entity for 
qualification, standardization and metrology. Its mission was to implement and manage the national 
quality system and other regulatory qualification systems that were conferred on it by law, to 
promote and coordinate activities that aim to demonstrate credibility of the action of economic JOB/ACC/TLS/4  
 
- 40 - 
 
  agents, as well as to develop actions necessary for its function as a national metrology laboratory . 
The Institute was in the process of implementation.  In response to a question from a Member, he 
elaborated that the duties of the NQCI  were to:  
i. implement, manage and coordinate a national quality system, with a view to integrating 
all the relevant components for improving the quality of products and services, 
contributing to increasing productivity, competitiveness and innovation in the public and 
private sectors;  
ii. propose to the Government measures leading to the definition of national policies 
related to the national quality system, within the scope of standardization, qualification 
and metrology;  
iii. implement and manage the national metrology laboratory in the scientific and applied 
components, ensuring the realization, maintenance and development of national 
standards of measurement units and their tra ceability to the International System (IS) 
promoting its dissemination throughout the national territory;  
iv. ensure and manage the legal metrological control system for measuring instruments, 
recognize competent entities for the delegated exercise of that con trol, whenever this 
proves necessary to guarantee national coverage and coordinate the network 
constituted by those entities;  
v. establish the quality identification marks of the national quality system and ensure 
the respective management;  
vi. promote and develo p training actions in the field of quality, namely qualification, 
standardization and metrology;  
vii. guarantee and develop quality through the establishment of protocols and strategic 
partnerships with public and private entities, as well as scientific and tec hnological 
entities that voluntarily or through inherent functions join efforts to define principles 
and means that aim at quality standards;  
viii. coordinate, qualify and recognize public sector and private entities as sectorial 
standardization bodies in which NQCI  delegate d technical standardization functions in 
sectors of specific activity;  
ix. develop cooperation and service provision activities to national and foreign entities 
interested in the field of quality;  
x. ensure and promote the participation of Timor -Leste as a member of organizations, 
working groups and other international bodies within the scope of its powers and 
competences;  and 
xi. ensure the participation of Timor -Leste as a member of international metrology 
organizations and the obligations ari sing therefrom, namely participation in 
the respective works.  
 
145.  Responding regarding the plan to become a member of the International Standards 
Organization (ISO), the representative of Timor -Leste added that the NQCI  had the competence to 
adhere to the Int ernational Standards Organization (ISO), but as the Institution was not yet fully 
functional. The NQCI  had been working in collaboration with the Authority of Inspection and 
Supervision of Economic, Sanitary and Food Activity  (AIFAESA) to facilitate meetin gs with the ISO 
to ensure that Timor -Leste was complying to the  ISO standards. Such efforts reflect ed Timor -Leste 's 
commitment to becom e a member of the ISO in the near future.  The Government, through the 
NQCI , would put the necessary efforts to promote co ordination with the relevant bodies  (including 
the Ministry of Tourism, Commerce and Industry, Ministry of Health, Ministry of Agriculture and 
Fisheries, Ministry of Public Works, AIFAESA, National Authority for Petroleum and Minerals, and JOB/ACC/TLS/4  
 
- 41 - 
 
  including the private sector)  to ensure  alignment with the ISO stan dards. At the same time, to 
achieve compl iance with the ISO standards , the NQCI require d further assistance in developing 
the necessary facilities, including developing a standardized laboratory to facilitate commercial 
activities , and in strengthen ing human resources capacity in the specific areas.  
146.  Responding to Member's question if his Government would  seek technical assistance to 
participate in international standards setting bodies activities such as those under Codex , 
he informed that since Timor -Leste had become a member of Codex Alimentarius in March 2017, it 
was open to seek  such technical assistance , namely, on training in the areas of: (i) Food Safety, 
Quality and Standards; and  (ii) TBT Training of Trainers (ToT) programme.  
- Sanitary and phytosanitary measures  
147.  Timor -Leste 's sanitary and phytosanitary measures were regulated by Decree -Law 
No. 21/2003 of 31 December  2003 on  "Quarantine and Sanitary Control on Goods Imported and 
Exported ". Government Decree No. 1/2006 of 20 September 2006 established the Rules and 
Procedures to Implement Decree -Law No.  21/2003 on the Exportation and Importation of Goods 
subjects to Quarantine Control (inspection, isolation, observation, treatment, detention, prohibit 
from enter ing the country, destroy and release).  
148.  The National Directorate of Quarantine Services  and Bio security , which was part of 
the Ministry of Agriculture and Fisheries, administer ed the Law. Its staff was empowered to supervise 
and inspect  any area and buildings that were not a person 's residence, ship or aircraft , to conduct 
sanitary and phytosanitary control. The role and responsibility of the Directorate , as well as 
the procedure for the issuance of sanitary  and phytosanitary certificates, were defined in Decree -Law 
No. 1/200 6. 
149.  The Ministry of Health was the Food Safety Authority of Timor -Leste, in charge of food safety 
measures.  The Authority of Inspection and Supervision of Economic, Sanitary and Food Activity 
(AIFAESA) , established by Decree -Law No. 26/2016 of 29 June 2016 , was responsible for 
the enforcement of Decree -Law No. 28/2011 of 20 July 2011 on "Food Industry and Marketing 
Regulation" that subjected imports of processed food products to sanitary regulation, guided by 
the Ministry of Health and the Ministry of Tourism, Commerce and Industry (MTCI ). 
150.  The representative of Timor -Leste informed that T imor-Leste had become a member of 
the International Office for Epizootics, the World Organization for Animal Health (OIE)  in 
November  2010 and a member of Codex Alimentarius  Commission in March 2017 . It had since been 
actively participating and working on ensuring its compliance with the relevant standards . 
151.  Timor -Leste  was not  yet a party to the International Plant Protection Convention (IPPC) . 
Responding to a Member 's question , he added that the Government has put significant effort to 
comply with the IPPC by participating as an observer. However, the Government recognized a few 
challenges before being in full compliance with the IPPC requirements  (which included provision of 
the basic infrastructure to establish a national laboratory ). Having said that, Timor -Leste ha d shown JOB/ACC/TLS/4  
 
- 42 - 
 
  its full commitment to IPPC through its membership to the Asia and Pacific Plant Protection 
Commission (APPPC) since November 2012 with a hope to become a member of the IPPC, once 
the necessary infrastructure  was in place  and human resources capacity  was strengthened . 
Timor -Leste was open to the Members'  assistance to accelerate its IPPC  membership.  Timor -Leste's 
IPPC contact point had been registered on the  IPPC website since 2008.1  
152.  He informed that Timor -Leste claim ed freedom from foot and mouth disease, bovine 
spongiform encephalopathy, rabies and highly pathogenic avian influenza (bird flu) and impose d 
restrictions against the import of animals or products that may introduce these diseases. 
Accordingly, for public health reasons , the importation of the following was prohibited: (i) any 
proteins for animal feeding containing meat powder, bone powder, blo od powder, or fat from 
mammal tissues ; (ii) poultry powder for ruminant feeding;  (iii) a ny products from cows, sheep, or 
goats showing clinical signs of spongiform encephalopathy ; (iv) a ny animals or any products of any 
animals showing clinical symptoms of certain diseases including, for example, foot -and-mouth 
disease and bird flu; and (v) n on-transformed fat . Import permits could not be also issued in respect 
of: (i) any items listed in  the Convention on International Trade in Endangered Species of Wild Fauna 
and Flora (CITES, Article 72); (ii) any items originating from a country or areas where there was an 
ongoing occurrence of quarantine -related plagues or diseases (Article 72); and ( iii) exotic seeds 
included in a list to be approved by a Ministerial Diploma (Article 82) .  
153.  Prior to importing (i ) live animals; (ii) live plants; (iii) animal or vegetal products as specified 
by law; and (iv) any other good, or merchandise, animal, or vegetal organism as specified in Article 
14 of Decree -Law No. 21/2003 , importers had to  obtain an import permit  from the Directorate of 
Quarantine Services  and Biosecurity . Applications for import permits had to be  accompanied by 
a certificate of origin. Import permits  were subject to compliance with conditions and requirements 
including specification of origin, inspections, treatments, points of  entry and exit, proofs, analyses 
and tests, or isolation in the country of export in a quarantine facility . They also had to contain 
the import conditions specific to the case and the international standards and recommend ations.  
154.  Responding to a Member's request for additional information on this procedure, 
he elaborated that the application form require d the address and contact details of the exporter and 
importer and the country of origin. For each  imported  item, the appl icant was required to list 
the country of origin, the common product name, the scientific names, a description of the items, 
and the quantity or volume to be imported.  In all cases the importer had to provide details on 
the routing, transport mode, and expected date of arrival. The importers w ere also required to 
specify if they had access to a registered Quarantine Approved Premise (QAP). When the importer 
(or the clearing agent) submitted the completed application form, the Department of Quarantine 
contacted their counterpart in the exporting country to request verification. Each import required 
a separate permit and had to undergo a full verification process.  The decision to grant an import 
 
1 https://www.ippc.int/en/countries/timor -leste/.  JOB/ACC/TLS/4  
 
- 43 - 
 
  permit took place within 3 working days. Import permit s were s igned by the Directorate of 
Quarantine  and Biosecurity . 
155.  He further explained that importation could be made immediately upon receipt of an import 
permit. According to Article 56 of Government Decree  No. 1/2006 , the permit  was valid until 
the arrival of  the imported goods. At the actual importation, the import permit was to be presented 
to the C ustoms Authorit y for clearance procedures according to the ASYCUDA -World System. 
The Customs Authorit y had the right to detain any products should there be no permit for the  specific 
products under these criteria.  At the same time, the Government was committed to comply with the 
SPS Agreement, in particular with Annex C(1)(b).  Responding to an invitation from a  Member to 
reconsider this import procedure and replace  it by a system of approved countries and 
establishments which was less cumbersome, more transparent and c ould provide appropriate 
guarantees , the representative of Timor -Leste confirmed that the existing procedure would be 
revised as soon as appropriate f acilities were in place in conformity with the international standards.  
156.  Responding to a question on the requirement for applications for import permits to be  
accompanied by a certificate of origin , the representative of Timor -Leste reflected on Timor -Leste 's 
minimum infrastructure conditions to prevent disease outbreak in the country . In this situation, 
the Government assessed  that requiring such a certificate would be  the most effective measure for 
preventing the importation of diseases. He believed this requirement was in compliance with 
the rules set under the OIE and IPPC standards.  
157.  He added that i mport permits relating to live plants could not  be issued to private persons 
or organizations (i.e. , persons other than Government  services, public institutions, and 
non-Government al organizations involved in projects to improve agriculture and forests approved 
by the Government ).  
158.  Import of the following species of seeds was subject to import authoriza tion: ( i) rice; 
(ii) corn; ( iii) coffee; ( iv) manioc; ( v) bananas; ( vi) citrus fruits; ( vii) mango; ( viii) coconut; 
(ix) phaseolus vulgaris (the common bean); ( x) vigna; ( xi) garlic; ( xii) onion; ( xiii) common potato; 
(xiv) pineapple;  and, (xv) avocado pear . In response to Member's question, he clarified that t hese 
commodities had been  selected according to the rules set by the IPPC, as they were identified to 
pose higher risks to human, animal or plant health. Other products that were not part o f this list had 
been identified to pose lower health risks, and thus d id not require pre -clearance inspections prior 
to import ation. These risks had been  selected in accordance with to the lists identified by the IPPC.  
159.  To obtain an import permit , an importer had to  pay the relevant fees and charges  and to 
present the following documents to the Directorate of Quarantine Services  and Biosecurity  to release 
the cargo:   
(i) for live animals : a zoo-sanitary  certificate issued by the competent authority of  
the exporting country and signed by the veterinary office  who carried out the inspection;   
(ii)  for plants and derivative products : a phytosanitary certificat e issued by the competent 
authority of the exporting country and signed by a competent official conducting 
the respective inspection. For any live plants, it was also necessary to comply with a JOB/ACC/TLS/4  
 
- 44 - 
 
  pre-export quarantine regime in the exporting country and a post import quarantine 
regime.  
160.  Decree -Law No. 21/2003 further  prescribe d specific rules f or the following  imports:   
(i) live animals: imported animals had to  be subject to a quarantine period of at least 
14 days (Article 30) and a veterinary inspection (Article 31);   
(ii)  incubation eggs: the imports had to  be sourced from a country that has been approved 
by the Directorate of Quarantine Services  and Biosecurity  (Article 33);   
(iii)  hen eggs for consumption: had to  be free of diseases or contaminations such as feather 
and feces (Article 34);   
(iv)  fresh fish for human consumption: s hould  not be subject to an import licen ce 
(Article  35.1);   
(v)  dried fish: upon arrival imports had to  be inspected for detection of insect infestation 
(Article 35.3);   
(vi)  canned meat or hermetically sealed packs of meat not requiring ref rigeration : could  be 
imported without restrictions (Article 36.1);  
(vii)  any other import of fresh meat : without restrictions as long as (a) it was packed in 
hermetically sealed packages or containers, weigh ing less than 5% of its meat weight 
and require d refrigeration in order to maintain quality , or (b) it was canned meat that 
did not require refrigeration (Article 36.2) ;  
(viii)  milk and milk products: had to  be derived from pasteurized milk (Article 37);   
(ix)  animal vaccines: required prior authorization from the Directorate of Quarantine  and 
Biosecurity  for some vaccines  (Article 38) , impo rt require d an import licen ce;  
(x)  animal skins and skin -made products: imported finished products were subject to 
veterinary inspection (Article 39);   
(xi)  live plants and vegetal products: had to  be accompanied by a phytosanitary certificate 
issued by the competent authority of the exporting country (Article 42.1);   
(xii)  imports of machinery, equipment and used vehicles: were subject to sanita ry inspection 
(Article 44); and , 
(xiii)  import of so il samples: subject to an import licen ce (Article 45).  
161.  Responding to Member's question on these rules, he informed that  the Government was 
willing to revisit the  existing  framework in light of the SPS Agreement.  With regard to item 
(vii), he clarified that  the weight requirements for imports of fresh meat were merely for statistical 
purposes to measure the annual consumption capacity of meat in the country.  This measure w ould 
be revised as soon as appropriate facilities ha d been in place in conformity with the international 
standards.  
162.  Having said that, Timor -Leste took note of Members' concern, thus, such measure will be 
revised as soon as appropriate facilities have been in p lace to be in conformity with the international 
standards.  
163.  He added that t he Ministry of Agriculture and Fisheries and the Minist ry of Finance could 
issue a joint ministerial statute defining service fees connected to the granting of import permits , 
issuan ce of certificates, or any other fees for services . To date , no action ha d been taken on 
introducing such fees . Should any fees be charged in the future, the fees would be based on 
a recovery of the actual costs, while the Government would ensure that the methodology to calculate JOB/ACC/TLS/4  
 
- 45 - 
 
  these costs was publicly available or provided upon request. Such methodology would be applied in 
a transparent manner.  Besides , since the whole quarantine and sanitary control framework was 
under review, the Government of Timor -Leste was revisiting the issue of service fees and costs in 
the context of such review.  
164.  The representative of Timor -Leste added that Timor -Leste currently  import ed over 
250 commodities from many countries. Each import require d an import risk analysis to assess the 
risk posed and to establish the need for import conditions to manage the risk . The Government was 
aware that sanitary and phytosanitary requirements was an area of expertise that required 
duly-trained capacity in orde r to fully enforce the Law. It hoped that the WTO accession process 
would result in such enhanced capacity to handle SPS issues.  The Government was  committed to 
push for the necessary reforms to be in conformity with standards of Codex, OIE, and IPPC as it  
develop ed its SPS regulations . He further informed that the Government  was reviewing Decree -Law 
No. 21/2003 and had developed an Action Plan for the Implementation of the WTO Agreement on 
the Application of Sanitary and Phytosanitary Measures (the SPS Agr eement). This Plan is provided 
to the Working Party in document WT/ACC/TLS/12. The International  Finance Corporation (IFC, 
member of the World Bank Group) was providing technical assistance to the Government to 
implement a project aiming to draft the Decree -Laws on Quarantine  (on Animal Health and Plant 
Health) . These draft Decree -Laws that, inter alia , defined competences of the Veterinary  Authority 
(VA) and the National Plant Protection Office (NPPO),  have been provided to the Working Party for 
review.  The Government was also drafting an Action plan for implementation of obligations under 
the IPPC.  
165.  Referring to Decree -Law No. 26/2016 , a Member asked if AIFAESA was also envisaged  as 
the national standards se tting body. The representative of Timor -Leste responded that  AIFAESA had 
been established by Decree -Law No. 26/2016 of 29 June 2016  with the mandate to ensure quality 
control activities of foodstuffs, conditions of transport, health and places where they were produced 
and sold.  At the same time, a s described in section "Technical barriers to trade", Timor -Leste 's 
National Quality Control Institute ( NQCI ) was the body responsible for defining the national 
standards. AIFAESA had the competence to execute the national standards defined by the NQCI  
through inspection and supervision.  
166.  Responding to a question on implementing regulations relating to non -compl iance , 
the representative of Timor -Leste informed that the VA and the NPPO had t he authority to notify 
non-compliance. While the National  Directorate of Quarantine and Biosecurity and the National 
Directorate of Animal Health work ed in coordination to cond uct inspections on the quality of 
products , their results w ould be submitted  to the  VA and the  NPPO for further action . This process 
would be applied gradually once the new Decree -Laws had been approved with the assistance of 
related experts to ensure its full compliance.  
167.  A Member  also requested to  describe the coordination among the AIFAESA , the VA and 
the NPPO, including  on the SPS enquiry point , and to  identify any proposed additional ar eas of 
coordination between the VA and the NPPO , apart from those described for coordination through JOB/ACC/TLS/4  
 
- 46 - 
 
  AIFAESA  in Articles 16 of the draft Laws . The representative of Timor -Leste clarified that 
the Directorate for Quarantine under the Ministry of Agriculture and Fisheries acted  as the entry 
point for import and export of plant and animal products. The VA and the NPPO  would  coordinate  
directly within the same Ministry. They would work in  coordination with AIFAESA to conduct 
inspections for products exceeding their date of expiry for the purpose of protecting human, animal, 
and plant health. Meanwhile, the Department of Quarantine w ould exercise its role to control every 
product entering at the border u nder the incubation process depending on the sample result at 
the laboratory.  Outside of the areas of coordination through AIFAESA, additional areas of 
coordination would be defined as follows : 
i. Ministry of Health: all medicine for animals should have prior  authorization from the Ministry 
of Health ; 
ii. Ministry of Tourism, Commerce and Industry (MTCI): MTCI w ould provide the rules of origin 
certificate for products to be exported in relation to animal and plant products ; 
iii. Registry Service and Business Verificati on (SERVE): all commercial activities, including 
importing and exporting, should obtain business licensing authorization from SERVE, where 
the licen ce should already list out export/import activities . This document w ould be required 
for inspection by the Customs Authority ; 
iv. Agency for Export Promotion and Investment (TradeInvest): responsible  authorities w ould 
also coordinate with TradeInvest on matters related to investment certificates ; 
v. Chamber of Commerce of Timor -Leste  (CCI-TL): would be  obliged to follow the rules set by 
the VA and NPPO on the procedures for export and import of animal and animal products, 
and plant and plant products.  
168.  With regards to the SPS enquiry point , his Government had established a single Contact 
Point for Information ("enquiry point") that was currently based in the Ministry of Agriculture and 
Fisheries, with the below  contact points :  
a) Chief Veterinary Officer (CVO):  
Name:  Dr Joanita Bendita da Costa  Jong 
Position:  National Director of Veterinary/ OIE Permanent Delegate  
Address:   
 
Phone:  Ministry of Agriculture and Fisheries of Timor Leste, Presidente Nicolao 
Lobato, No 5 Comoro – Dili, Timor -Leste  
+670  7754 6394 
E-mail address:  katitadog_2001@yahoo.com, lihirika@gmail.com  
 
b) Plants:  
 
Name:  Mr Americo Alves Brito  
Position:  Chief of Department for Plant Protection, Department of Plant Protection for 
Agriculture  and Horticulture, National Directorate of Agriculture and 
Horticulture, Ministry of Agriculture and Fisheries of Timor Leste  
Address:  
 
Phone:  Ministry of Agriculture and Fisheries of Timor Leste, Presidente Nicolao  
Lobato, No 5 Comoro – Dili, Timor -Leste  
+670 7766 5056  
E-mail: bamerico@hotmail.com, americoalvesbrito@yahoo.com  
 
 
The VA would maintain a separate OIE contact point, while NPPO would maintain an IPPC contact 
point once Timor -Leste becomes a contracting party to the IPPC . JOB/ACC/TLS/4  
 
- 47 - 
 
  169.  He added that the authorities responsible for making notifications to the WTO and ensuring 
transparency obligations would be in the Ministry of Agriculture and Fisheries, such as the Directorate 
for Quarantine and the Directo rate for Veterinary.   
170.  A Member further enquired about the transparency requirements in place in Timor -Leste, 
including with respect to publishing draft regulations  related to SPS , solicit ing comments from 
interested parties, and tak ing those comments into account before publishing the final regulation s. 
The representative of Timor -Leste responded that the Government was yet to develop any draft 
regulations on such transparency requirements . However, considering Timor -Leste 's commitment to 
harmonize its fram ework with the international standards under the OIE and the IPPC, it would 
ensure that any draft regulations  would be consulted with the relevant partners at an early stage for 
comments before publishing and adopting such regulations.  Further, he informed that while 
the Government of Timor -Leste still applied a manual system in publishing the lists of goods subject 
to veterinary  and phytosanitary control, including those that required import permits, veterinary  and 
phytosanitary certificates or any other documents, it was committed to adopting an online platform 
to publish the above lists in future.  
171.  A Member also requested to explain where the conditions to import  animals and animal 
products and  plant and plant products would  be laid down. The representative of Timor -Leste  
informed that these import requirements  would be laid down in a Ministerial Dip loma, once the draft 
Decree -Laws were in place . Such a Diploma w ould also elaborate on the derivative products. 
He confirmed that these requirements  would be consistent with the OIE and IPPC standards.  
The draft Diploma has been provided to the Working Party.  
172.  Further, a Member underlined that, i n accordance with the IPPC, it was the responsibility of 
the NPPO of the exporting party to ensure that the products compl ied with the requirements of 
the importing party . Similarly, veterinary inspection of goods should be the responsibility of 
the veterinary authorities of the exporting country.  A Member asked the representative of  
Timor -Leste to clarify if and where pre -clearance inspections w ould be requested . The repr esentative 
of Timor -Leste recognized the matter raised by a Member. He informed that,  to be precautious of 
risks that could  be imposed from a  disease  outbreak from any imported country, Timor -Leste 
recognize d the importance of preventive measures. In practice, Timor -Leste through the  VA or  NPPO 
oblige d to conduct pre -clearance inspections upon request or only when there was a disease 
outbreak in an importing country, where pre -inspection w ould be conducted by the competent 
Authority.  At the same time, the Government was committed to replace the current system with 
Members' assistance in providing basic facilities to prevent disease outbreak in the country , to be in 
accordance with the procedures set under the  OIE and the  IPPC.  Further, the representativ e of 
Timor -Leste confirmed that in the event a exporting country had a localized outbreak of an a disease 
or pest, the Government of  Timor -Leste would allow for regionalization of imports from areas shown 
to be free from the disease/pest, provided that the  imported goods were properly certified according 
to the standards set under the OIE and the IPPC. If an exporting country had regional isolation 
methods in place to ensure that these types of outbreaks were centralized, controlled and mitigated, JOB/ACC/TLS/4  
 
- 48 - 
 
  the Gover nment of Timor -Leste would allow imports of products from such exporting country, 
including seeds, with appropriate sanitary/phytosanitary documentation.  
173.  Responding to a request from a Member to elaborate on the pre -clearance inspection 
process, the repres entative of Timor -Leste added that, in all cases, an importer had to obtain 
an import permit prior to the pre -clearance inspection. The process included conducting a thorough 
review of the imported goods based on importers' import authorizations.  The Gover nment ha d built 
a standard laboratory to conduct basic tests in the country . However, should a test require a complex 
procedure, a sample w ould be sent to the designated laboratory abroad or any location that has 
been accredited by OIE /IPPC  standard to ens ure that no risks w ould be posed by the products . 
The prescribed testing procedures, including the process for sampling and the appeals process for 
disputing a claim, included: (i)  quarantine measures for inspections and detainment; (ii) treatment, 
installation and isolation processes (between 14 to 21 days);  (iii) requisition process (measures to 
be taken at the port); and (iv) should any products be identified to have contained any diseases that 
pose risks to human, animal or plant healt h, tak ing the necessary measures to reship or burn 
the identified products.  The prescribed sampling procedures and methodologies, including 
the process for sampling and the appeals process for disputing claim, follow ed the guidelines set 
under the OIE /IPPC. He added that, w hile Timor -Leste was yet to join the ISO, the Government 
would put the necessary efforts to promote coordination and collaboration with the relevant bodies 
to be aligned and compliant with the ISO standards, including standards detailed i n ISO 17025: 
"Testing and Calibration Laboratories ". Nevertheless, to be ISO -compliant, the Government still 
required further assistance in developing the necessary facilities, including to develop 
an internationally accredited laboratory.  
174.  He added that, i n the implementation of the Government Decree No. 1/2006 and other 
applicable legislation, the following quarantine measures could be taken: (i) inspection; (ii) isolation; 
(iii) observation; (iv) treatment; (v) detention; (vi) refusal to enter the country ; (vii) destruction; 
or, (viii) release. Any incident that affected or had repercussions on health control had to be 
immediately reported to the Director who would decide on the measures to be taken.  
175.  A Member asked if to confirm if post-entry treatment for  horticultural imports w ould be 
an option included in "phytosanitary treatment in order to remove the risk"  under the draft 
Decree -Law. The representative of Timor -Leste confirmed that this would be the case . 
176.  A Member stressed that while, according the draft Decree -Law, the VA could regulate the  use 
of coccidiostats, antibiotics, growth promoters hormones and other medication and therapeutical 
substance in feed , the use of antibiotic in animal production (including in particular the use as growth 
promote rs), was an important factor of the development of anti -microbial resistance. This Member  
invite d the Government of Timor -Leste to ban the use of antibiotic for growth promotion or develop 
a plan for phasing out such use.  The representative of Timor -Leste took note of the Member 's 
proposal and clarified that, i n practice, the Government of Timor -Leste through the VA has been 
exercising its competence to ban the importation of antibiotic and growth promotion substances in 
accordance with the OIE standard.  JOB/ACC/TLS/4  
 
- 49 - 
 
  177.  A Member enquired about the maximum residue level (MRL) regime applied in Timor -Leste , 
as well as its intention to adopt Codex MRLs and the deferral pathway for imports if there was no 
Codex MRL. The representative of Timor -Leste confirmed that, as a member of Codex Alimentarius 
since March 2017, Timor -Leste was obliged to follow the guidelines set under Codex Alimentarius 
MRLs. Having said that, the Government  was yet to develop specific rules regarding MRLs . 
It remain ed committed to adopt the Codex Alimenta rius MRLs in future , once the draft Decree -Law 
on Quarantine  (Animal Health) was approved and effectively implemented . In this light, Timor -Leste 
still adopt ed imported tolerance and the deferral pathway for import procedures in accordance with 
the rules set under the IPPC and the general rules for import procedures in the country, while 
recognizing  the inspection and certification systems as fundamentally impor tant and widely used 
means of food control systems . 
178.  Responding to a question on the Official Program for the Control of Pesticide Residues in 
Products of Plant Origin, as provided in Article 16(m) of Decree -Law No. 26/2016, the representative 
of Timor -Leste informed his Government of Timor -Leste had drafted the Law on Pesticides with 
the technical assistance of FAO. This draft Law would list out guidelines for authorities that have 
the competence over the application of pesticides. Once this Law was approve d, the authorities 
under the Ministry of Agriculture and Fisheries w ould work in coordination with the AIFAESA to 
regulate the guidelines established by the Law.  
179.  A Member also asked  when the Government of Timor -Leste would publish its list s of 
regulated pests  and notifiable diseases . The representative of Timor -Leste responded that such list s 
would be published as soon as appropriate facilities were in place. The Government was open to 
the necessary assistance from Members to accelerate Timo r-Leste 's compliance to adopt these 
system s. 
180.  A Member also noted that "living modified organisms" were included within the regulatory 
scope of the NPPO and asked if the Government of Timor -Leste would accept the validity of 
regulatory authorities' risk ass essments and Codex guidelines as sufficient for import of agricultural 
biotechnology products. The representative of Timor -Leste confirmed that the Government was 
committed to push for the necessary reforms to accept the validity of regulatory authorities ' risk 
assessments and Codex guidelines as sufficient for import of agricultural biotechnology products.  
181.  A Member also noted Article 27(2) of the Framework Law on Environment (Decree -Law 
No. 26/2012 of 4 July 2012) stating measures would be taken to prevent  and minimize risks to 
biological diversity and human health from genetically modified living organisms. The Member asked 
to clarify how such risks would be determined  and what would be the basis for measuring the "threat 
to the  environment, national econo my, or public health" as outlined in Article 10  of Decree -Law 
No. 21/2003 . This Member requested the Timor -Leste to ensure that any sanitary or phytosanitary 
measures to protect biological diversity and human health were based on scientific principles and 
were least trade restrictive as outlined in Articles 2 and 5 of the SPS Agreement.  
182.  The representative of Timor -Leste responded that t he Government had approved 
Decree -Law No. 6/2020 of 6 February 2020 on the "Legal Regime to Protect and Conserve 
the Biodiversity " applicable to the conservation of biodiversity and the sustainable use of its JOB/ACC/TLS/4  
 
- 50 - 
 
  components and the fair and equitable sharing of the benefits generated from genetic resources, as 
fundamental bases for family subsistence, food security and the w ell-being and health of current 
and future generation.  Article 34 of this Decree -Law state d that the preservation and conservation 
of habitats and critical habitats necessary to ensure that an organism or population of a species 
could survive and thrive was carried out within the national system of protected areas, without 
prejudice to the possibility of adopting specific ex situ measures.  Article 37 identifie d the measures 
of risks for the importation of exotic species as follows:  
i. Exotic species that pose d a threat to ecosystems, habitats or species were identified in 
a national list that contain ed in a discriminated way:  
a. Identification of invasive alien species whose import or circulation in the country was 
prohibited;  
b. Identification of non -invasive exotic  species whose import or circulation had to  be 
regulated.  
ii. The national list was prepared by the Government member responsible for nature 
conservation and biodiversity, after consultation with the Governmental entity 
responsible for the environment, the Bio diversity Advisory Committee, quarantine 
services and relevant research institutions, taking into account the available 
information ; 
iii. The national list of exotic species was approved by a Government Resolution.  
iv. Any person, whether natural or legal, could  submit a request for inclusion or removal 
of species from the national list of exotic species to the Government entity responsible 
for nature and biodiversity conservation.  
 
The information on the invasive specie s in Timor -Leste is contained in Annex 15. The representative 
of Timor -Leste confirmed that his Government would  ensure that its sanitary or phytosanitary 
measures to protect biological diversity and human health were based on scientific principles and 
were least trade restrictive as outlined in Articles 2 and 5 of the SPS Agreement.   
183.  A Member also requested the Government of Timor -Leste to notify the WTO, in accordance 
with its obligations under Annex B of the SPS Agreement and Article 2.9 of the TBT Agree ment, 
when the regulatory changes may have significant effect on trade with other Members or be of 
particular interest to parties in other Member countries. The representative of Timor -Leste confirmed 
that his Government would notify the WTO accordingly.   
- Trade-related investment measures  
184.  The representative of Timor -Leste informed that his Government did  not have  any trade -
related investment measures in place.  In future, should such measures be introduced, they would 
be in compliance with the WTO Agreement on Trade -Related Investment Measures (the TRIM s 
Agreement) , as the Government was willing to fully comply with WTO rules.  
- Free zones, special economic zones  
185.  The representative of Timor -Leste informed that the  Customs Code authorized  
the Gover nment of Timor -Leste to approve free zones benefiting from customs exemption regimes. 
However, there were currently no free zones within  the territory of Timor -Leste.   JOB/ACC/TLS/4  
 
- 51 - 
 
  186.   Through Law No. 3/2014 of 18 June 2014 , the National Parliament had approved 
the creation of the Oecus se-Ambeno Special Administrative Region (SAR) and the Special Economic 
Zone for Social Market Economy (ZEESM)  whose territory include d the enclave of Oé -Cusse and 
the island of Ataúro . ZEESM ha d made considerable progress since 2014, establishing an effective 
administrative and regulatory framework as a SEZ, which ha d fostered infrastructure development 
(e.g. telecommunications, roads, bridges, airport, port, water and sanitation systems, schools , 
health clinics, electrical power grid, etc. ) that nurture d the enabling environment for regional 
economic development and diversification.  The Statute of the Oecusse -Ambeno Special 
Administrative Region , approved by Decree -Law No. 5/2015 of 22 January 20 15, had mandate d that 
a Free Trade Zone and an Industrial Customs Free Zone be created within the Region. The specific 
rules on the Free Trade Zone and Industrial Customs Free Zone were yet to be enacted .  
187.  In addition, Article 10 of the draft Export Promot ion Law provided for  the right of 
establishment in a special economic zone. An exporting company could  establish itself in special 
economic zones, namely in export processing zones or warehouses and in free zones .  
188.  Responding to Member's question on the process of development of this special economic 
zone and the types of incentives provided, the representative of Timor -Leste further informed that 
the Authority of SEZ was empowered to enact public policy measures, to  be enforced within its own 
territorial limits, to exempt from payment of customs duties and respect for the principle of social 
market economy as a paradigm of economic growth by attracting investment, technology and 
establishment of companies, both domes tic and foreign. To date , this was only  applicable to goods 
imported to implement SAR's projects and programs, in accordance with Article  38.3 of Law 
No. 3/2014 . Two public projects ha d benefited  from customs exemption, namely: (i) the construction 
of a Cl inic and acquisition of two mobile clinics and (ii) a Hotel, both funded by the Special 
Administrative Region Development Fund. Tax exemptions were granted to investors in the special 
economic zone Oe -Cusse Ambeno and Ataúro for a period up to 10 years (se e Table 1 of section 
"Investment Regime").  More detailed package of incentives was yet to be determined by 
the Authority, in compliance with  WTO rules.  
- Government  procurement   
189.  There are no major restrictions or limitations on foreign entities ' (natural or legal persons) 
participation in Timor -Leste procurement procedures. Government  procurement was governed by 
the Timor -Leste Public Procurement Framework, approved b y Decree -Law No. 10/2005, of 
21 November  2005, as last amended by the Decree -Law No. 5/2021 of 23 April 2021.  
190.  With respect to the type of Procurement Procedure , he informed that  there were no major 
restrictions or limitations on foreign’ entities (natural or legal persons) participation in this 
procedure. A s a general rule, irrespective of the acquisition ( i.e. goods, services or works) , a national  
open tender procedure had to  be followed if the expense to be incurred was in an amou nt in excess 
of US$  100,000.  An international open tender  procedure  had to  be followed in situations that pertain 
to: (i) public works in excess of US$  1,000,000; (ii) the purchase of goods and acquisition of non -
consulting services in excess of US$  250,000; or, (iii) the acquisition of services or consultancy 
contracts in excess of US$  200,000.  JOB/ACC/TLS/4  
 
- 52 - 
 
  191.  In the national open tender procedure, the  participation of bidders was limited to 
Timor -Leste individuals a nd/or companies set up in Timor -Leste the majority of whose share capital 
was held by Ti mor-Leste citizens (at least 51%) or in which the said Timor -Leste individuals and/or 
companies could be  regarded as preferential bidders.  
192.  In addition, by Decree -Law No. 2/2010 of 18 February 2010  on Special Procurement for 
Construction Work Up to US$ 250 ,000" , the Government  had approved a special procurement 
procedure for the award of public works in an amount of up to US$  250,000, in which only local 
companies based in the municipality  could  apply.  This Decree -Law aimed at supporting private sector 
development at the sub -district and encourage community participation in infrastructure 
development in their area. Another limitation to the general principle of open and transparent 
competition could  result from the adoption of d irect award procedures. However, in these cases both 
national and foreign entities could  benefit from this type of procurement. The Public Procurement 
Framework  listed the rules and procedures that allow ed for this type of procedure to be adopted , 
however,  this was an exception situation that require d a clear and detailed justification. Such 
situation s were, among others: (i) emergency case following an unforeseen event which endanger ed 
public health and safety; (ii) absence of  tenders or absence of  tenders  which met the criteria laid 
down in invitation to tender, or if the candidates d id not meet the requirements for participation; 
(iii) when goods and services c ould only be supplied by a specific entity and d id not exist on the 
market a reasonable or substitute  alternative;  (iv) for the protection of patents, copyrights or other 
exclusive rights or intellectual property rights.  The adoption of a direct award procedure c ould also 
be made on the basis of material criteria, in which case the choice was independent of the value of 
the respective contract. The adoption of a direct award procedure that had not been  duly grounded 
and justified according to the Decree -Law could  be viewed as an administrative offence, pur suant to 
Article 3  of Decree -Law No. 11/2005  of 8 November 2005 on "Legal Regime for Public Contract" , 
which set forth the Legal Framework on Administrative Offences to the  Public Procurement Legal 
Framework and state d that any action or omission which was contrary to the rules established in the 
Timor -Leste Public Procurement Framework  constitut ed an administrative  offence.  
193.  Another  situation that had been  regarded as a limitation to the general principle of open and 
transparent competition result ed from the existence of an internal instruction from the Cabinet of 
the Prime -Minister ( Circular Note No. 003/GPM /III/2009 ) that had authorized the Government to  
preferentially purchase Mitsubishi or Toyota vehicles, except when there was a specific reason that 
justifie d the purchase of state vehicles of other brands . This had been  a transitory measure justified 
by the availability of spare -parts and maintenance se rvices , which had been revoked . Responding 
to Member's question on the existence of any other specific goods/services/sectors for which the 
Government was expected to buy specific brands, the representative of Timor -Leste confirmed that 
there were none.  
194.  He added that, a part from the se exceptions, the Government  of Timor -Leste d id not limit or 
restrict the  participation of foreign nationals or entities in public tender procedures.  
195.  Responding to a question from a Member on the procedure for procurements above the 
US$ 100,000 threshold but below the international open tender thresholds, he informed that this JOB/ACC/TLS/4  
 
- 53 - 
 
  threshold had been introduced by Decree -Law No. 24/2008 of 23 July 2008. Publ ic tenders were 
mandatory in procurements equal or over US$ 100,000 and not reserved for local companies. 
Whenever purchasing goods and services and executing public works, all public institutions had to 
follow principles such as public interest, competiti on, equal treatment, legality, transparency, and 
impartiality, which are set by Decree -Law No. 10/2005.   
196.  Requested to provide information on the number and value of tenders above the 
US$ 100,000 threshold or other thresholds , the representative of Timor -Leste invited to consult the 
eProcurement Portal at: https://www.mof.gov.tl/government -procurement/eprocurement -
portal/?lang=en  whereby the data and any other relevant  information on Timor -Leste Public 
Procurement were made available . In addition, since 2015, the Public Procurement Commission also 
maintained  a procurement portal (www.cna.gov.tl) which present ed information on current tenders 
and intent to award, whereby  it announce d invitation s for bids, winning bidder s and the results of 
evaluations undertaken. This website also ke pt records of past public tenders.  
197.  A Member also requested to confirm that foreign -based bidders were treated on a fair and 
equal basis with domestic bidders in bidding processes above US $ 100,000 . In response, the 
representative of Timor -Leste referred to Article 4 (Legal and Equality Principles)  of Decree -Law 
No. 10/2005 which provided that access and participation conditions we re equal to all interested 
parties. Any discrimination of the bidders was prohibited. Accordingly, he confirmed that foreign -
based bidders were treated on a fair and equal basis .  
198.  A Member asked for a clarification regarding the award procedure, including any 
requirements and limitations surrounding the use of direct award procedure for foreign -based 
bidders  and any available guidelines to help provide foreign -based bidders with adv ice on the use of 
direct award procedure . The representative of Timor -Leste informed that this procedure was 
exceptional. Articles 92 to 94 of Decree -Law No. 10/2005 provided  the requirements and limitations 
surrounding the use of direct award procedure fo r all bidders, as described in paragraph [192]. 
Those were the applicable guidelines foreign -based bidders c ould refer with respect to direct award 
procedure .  
199.  In response to Member's question, the representative of Timor -Leste also elaborated on 
the amendment introduced by Decree -Law No. 30/2019  which included a requirement for all 
international public tenders to be publicized on at least two electronic platforms internationally used 
for the purpose, as well as in a newspaper with national circulation , so that the announcement for 
the opening of the tender would get to the broadest number of potential competitors  (amendment 
to Article 61) . He added that the latest, seventh amendment effected by Decree -Law No. 5/2021 of 
23 April 2021 introduced an excep tional regime to facilitate government procurement in response 
to the emergency situation and humanitarian concerns that the country faced as a result of the 
tropical flood which had occurred in April 2021.  
200.  The representative of Timor -Leste added that, Timor-Leste as a n LDC remain ed committed 
to an alignment and compliance with the WTO rules, commensurate to Timor -Leste's development 
needs, according to Article V of the WTO Agreement on Government Procurement and aiming 
a modern Public Procurement Framework . In this exercise, t echnical assistance was provided JOB/ACC/TLS/4  
 
- 54 - 
 
  whereby the public procurement system was subject to an evaluation conducted with the support of 
the World Bank  (WB) and the Asian Development Bank  (ADB) , according to the Methodology for 
Assessment to Procurement Systems (MAPS). The report resulting from this assessment w ould be 
submitted to the Government, with the pertinent recommendations.  Therefore, the legal procedure 
would start soon in 2021 , in order to establish  a new regime for public procureme nt. 
- Transit  
201.  Under the Timor -Leste 's Customs Code, goods in transit had to  undergo control and customs 
inspection . Their transportation took place under a transit declaration, issued in triplicate. Originals 
of transit declarations had to  be filed at the customs office of transhipment  and the respective 
duplicates and triplicates had to  be handed over by the c arrier to the customs office of  destination.  
There were no  fees applicable to goods in transit.  
- Agricultural policies  
202.  The representative of Timor -Leste informed that agriculture was a critical sector for 
Timor -Leste's development. The majority of households in Timor -Leste were rural and agricultural. 
Most workers were engaged in the agricultural sector . Given the low level of agricultural output, 
Timor -Leste ha d a large  agricultural sector with low productivity,  operating at close to subsistence 
level. The sole significant export crop was coffee, which was grown in smallholdings and provide d 
income for households including approximately one quarter of the population. In the medium -term, 
the Government envisaged t hat exports w ould focus on agricultural cash crops including coffee, 
spices and other niche products. Improving farm -level productivity and domestic transport 
infrastructure and reducing shipping costs w ould be important factors in the growth of agricultur al 
cash crops. In  addition, in  the long -term, Timor -Leste ha d considerable potential to develop a 
profitable commercial forestry and fishing industr ies. 
(a) Imports  
203.  The representative of Timor -Leste informed that t here were no spec ific policies affecting 
imports of agricultural products. Imported agricultural goods were only subject to the rules contained 
in Decree -Law No. 21/2003 of 31 December  2003 on  "Quarantine and Sanitary Control on Goods 
Imported and Exported"  requiring sanitary import permits , as mentioned  in section "Sanitary and 
phytosanitary measures" .  
(b) Exports  
204.  There were no export prohibitions or restrictions for agriculture products. This policy was 
expected to be maintained i n future as part of Timor -Leste's investment policy.  
205.  There were no export subsidy measures in place. There were no laws, regulations, policies 
or programs providing for export credit, export credit guarantees, or insurance programs .  JOB/ACC/TLS/4  
 
- 55 - 
 
  (c) Internal policies  
206.  The representative of Timor -Leste provided information on domestic support and export 
subsidies in agriculture for the period  2017-2019 in document WT/ACC/SPEC/ TLS/1. 
207.  A Member noted that the Ministry of Agriculture and F isheries was responsible for the design, 
implementation, coordination, and evaluation of policy approved by the Council of Ministers in 
the area of agriculture, forestry, fisheries, and livestock. The Ministry could  propose policy and draft 
legislation/regulations to  establish technical support centers for farmers; manage technical and 
agricultural education; promote agricultural research and optimization of agricultural land; control 
land use for agricultural produc tion purposes; promote and monitor animal health; promote 
the agricultural and fishing industry; promote and control food production, including seed 
production; manage the quarantine services; promote, in coordination with the Coordinating Minister 
for Eco nomic Affairs, rural development by implementing a cooperative system for the production 
and commercialization of agricultural production; to carry out feasibility studies for the installation 
of irrigation systems, water storage, as well as the constructi on of the respective facilities. A Member 
asked if such measures to support the agricultural sector ha d been established to date , and to 
provide budgetary allocations . A Member further asked if the Government of Timor -Leste planned 
to develop a new strateg ic of the Ministry of Agriculture and Fisheries.   
208.  The representative of Timor -Leste responded that t he Ministry of Agriculture and Fisheries 
was operating  based on the strategic plan for 2014 -2020 and its short - and medium -term strategic 
plans, which were developed in accordance with the National Strategic Development Plan of 
2011-2030. Referring to the impact of  the COVID -19 pandemic on the overall economic growth of 
the country,  he added that the Ministry  would maintain the current strategic plan . The pla n could be 
reviewed in future, in line with the vision set under the National Strategic Development Plan of 
2011-2030.  
209.  He added that a gricultural policies had been developed according the Agriculture Policy in 
2004, with had been revised in 2017, to refle ct the five main priorities : (i) sustainable increase in 
production and productivity; (ii) improving market access and value addition; (iii) improving 
the enabling environment for the agricultural sector; (iv) organizational development; and, 
(v) sustainable resource use. Between 2013 and 2017, the Ministry ha d invested a total of over US$ 
119 million in the se priority sectors , and a total of over US$ 60.9 million  between 2018 and 2021 . 
A number of outcomes ha d been achieved as a result of these budgetary allocations including:  
i. rehabilitation of nine main irrigation canals across the country to improve its irrigation 
system as part of its infrastructure development programme;  
ii. increased rice productivity from 3.5 to 6 tons/hectare;  
iii. increased seed production, particularly for rice, maize and beans;  
iv. increased vaccinations and animal feeding programmes as part of the development of 
livestock programme; and  
v. development of the aquaculture industry on the South Coast of the country.  JOB/ACC/TLS/4  
 
- 56 - 
 
  These measures had been notified to the Working Party as part of the information on domestic 
support and export subsidies in agriculture , in Table DS:1.  
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIME  
1. GENERAL  
210.  The representative of Timor -Leste informed that, i n accordance with the provisions of A rticle 
165 of the Constitution , the laws and regulations in Timor -Leste appl ied insofar as they were not 
contrary to the Constitution a nd to the principles contained therein. Accordingly,  all Indonesian 
legislation on intellectual property existing prior to the restauration of the independence  (Title XX of 
the Indonesian Civil Code on "Intellectual Property")  remain ed formally in force. However , in practice 
it had not been effective , as there was no adequate institutional framework for its implementation 
(such as an Intellectual Property Registration  Agency ). He confirmed that the Government of 
Timor -Leste recognize d the urgent need for protecting intellectual property ( IP) owners while doing 
business in the country.   
211.  He added that , despite the absence of legislation regulating protection and registration of IP  
rights  in Timor -Leste, several statutes adopted by Timor -Leste address ed IP-related matters , as 
described in this section. Thus, the Constitution provide d that the State sh ould guarantee and protect 
the creation, production and commercialization of literary, scientific and artistic work, including 
the legal protection of copyrights.  Section 60 of the Constitution  (Intellectual Property ) constitutes 
the legislator's obligation to produce specific legal instruments to protect th ese rights.  
212.  He added that, to date, Timor -Leste did not have an IP office for admin istration and 
management of IP -related legislation.  
213.  He further informed that Timor -Leste had acceded to the World Intellectual Property 
Organization (WIPO) on 12 September 2017, following the deposit with the Director General of 
WIPO, at Geneva, of the In strument of Accession to the Convention Establishing the World 
Intellectual Property Organization (WIPO), signed at Stockholm on 14 July 1967, and amended on 
28 September 1979. Resolution of the National Parliament of Timor -Leste No. 16/2017 of 
25 July 2017 ratified the Convention. The accession to the WIPO had opened avenues of institutional  
collaboration and partnership that would help Timor -Leste achieve compliance with the substantive 
obligations of the WIPO Convention and the international treaties and  conventions on Intellectual 
Property, such as the Paris Convention for the Protection of Industrial Property (Paris Convention) 
and the Berne Convention for the Protection of Literary and Artistic Works (Berne Convention). 
The Government of Timor -Leste an d WIPO planned to sign a Memorandum of Understanding (MOU), 
aware of the importance of having a well -functioning and balanced IP regime in order to promote 
innovation and creativity, which are the main drivers of economic development of knowledge -based 
economies , in the end of 2021. The MOU would allow the Government of  Timor -Leste to have access 
to specialized technical assistance in order to appropriately integrate IP related issues into 
the national development framework and cater for the interface of br oad national IP policies and 
strategies with relevant national policy issues. As of June 2021, the MoU was under technical JOB/ACC/TLS/4  
 
- 57 - 
 
  discussion to maximize  the benefits and ensure that WIPO 's assistance would target the necessary 
legislation and policy reforms to co mply with the WTO Agreement on Trade -Related Aspects of 
Intellectual Property Rights  (TRIPS Agreement), aiming to: (i) develop a National IP Strategy /Policy  
and its Action Plan; (ii) integrate IPR -related agreements into  the national policy and regulatory 
framewor k; and, (i ii) set up a National IP Office and capacity building. To achieve these objectives, 
the Government of Timor -Leste committed to using the existing methodology and tools of the WIPO, 
while still recognizing the specific national circumstanc es and requirements . 
214.  Responding to Member's question on Timor -Leste's  membership  in other IP -related 
conventions, including  the principal treaties in the field of IP as well as other international copyright 
treaties, such as the WIPO Internet Treaties , the representative of Timor -Leste responded that 
the Government of Timor -Leste committed to sign and ratify all conventions and treaties deemed 
necessary for having a modern IP regime, as well as the ones required in the context of accession 
to WTO. The timeframe for joining such conventions and treaties would result from the national 
assessment of IP -related issues in Timor -Leste.  
215.  As an LDC, the Government of Timor -Leste expect ed to be granted an adequate period to 
adopt TRIPS -inherent obligation s in the national system. Since IP -related issues were knowledge 
intensive and specialized in nature, they require d the country to have the appropriate institutions 
and human capital in place, which t ook time. In response to Member's question on the timeli ne for 
adoption of IP laws, he referred to the Action Plan on the Implementation of the TRIPS Agreement 
provided to the Working Party in document WT/ACC/TLS/14 . 
- Application of national and most favoured nation treatment to foreign nationals  
216.  The Private Investment Law  set for the general principle of equal treatment between national 
and foreign investors determining that all investors enjoy ed non-discriminatory t reatment in terms 
of rights and guarantees, except as regards to land ownership and to the minimum investment or 
re-investment values. Within the Law, an investment was defined as any direct or indirect 
investment in the country undertaken on behalf of and  at the risk of the private investor with cash 
or other goods, quantifiable in monetary terms, such as patented technology, technical processes, 
industrial secrets and utility models, franchising and transfer of know -how, brands, logos, names or 
insignias of registered establishments, as well as any other form of intellectual property.  Article 19 
of the Law (Intellectual Property) established that all investors had the right to the protection of 
industrial secrets, copyright, industrial property rights, trademarks, or any other intellectual property 
rights recognized by law.  The Law contained general provisions applicable to foreign investors' 
intellectual property rights and referred the respective regime to specific specialized IP legislation 
which was yet to be developed further regulate standards, enforcement and dispute settlement 
mechanisms inherent to investors' rights and guarantees.  Thus, i nvestors were guaranteed the right 
to freely transfer funds abroad, which included income obtained fr om the transfer of intellectual 
property rights which constituted the investment. The Law also established that investors were 
entitled to protect patents or utility models which they had registered as being the respective JOB/ACC/TLS/4  
 
- 58 - 
 
  authors, as well as trademarks, l ogos, names or insignias of establishments and other information, 
object of protection in terms of IP, according to the applicable legislation .  
- Fees and taxes  
217.  The representative of Timor -Leste informed that the  Private Inve stment Law grant ed 
the opportunity to national and foreign investors to be awarded certain tax benefits and customs 
incentives  (see section "Investment regime") . The regime had abolishe d the fee both for nationals 
and foreign nationals.  
2. SUBSTANTIVE STA NDARDS OF PROTECTION  
- Copyright and r elated rights  
218.  The representative of Timor -Leste informed that the re were presently no laws and related 
substantive measures to ensure protection of copyrights and related rights. The Civil Code (Law 
No. 10/2011 of 14 September 2011) set forth that copyright wa s regulated by the law of 
the jurisdiction where the work was firs t published or, if it was not published by the author's personal 
law, without prejudice to special legislation, regulated by the law of the country of its creation.  
219.  In response to Member's question, he confirmed that his Government intended to comply 
with all provisions of the TRIPS Agreement applicable to LDCs, and its inherent standards, 
enforcement and dispute mechanisms , including by joining the Berne Convention for the Protection 
of Literary and Artistic Works ( Berne Convention ) and by establishing the  relevant protections for 
copyrights and related rights consistent with Part II, Section 1 of the TRIPS Agreement and Articles 
1-21 of the Berne Convention .  
- Trademarks , including service marks  
220.  The repre sentative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure protection of trademarks , including service marks . In response to 
Member's question, he confirmed that his Government intended to join the Paris Convention for 
the Protection of Industrial Property  (Paris Convention ) and to establis h the relevant protections for 
trademarks, including service marks  consistent with Part II, Section 2 of the TRIPS Agreement and 
Articles 6-10 of the Paris Convention.  
- Geographical I ndications , including appellations of origin  
221.  The representative of Timor -Leste informed that t here were presently no laws and related 
substantive measures to ensure protection of geographical indications , including appellation of 
origin . In response to Member's question, he confirmed that his Government intended to establish 
the relevant protection s for geographical indications, including appellation of origin consistent with 
Part II, Section 3 of the TRIPS Agreement.  JOB/ACC/TLS/4  
 
- 59 - 
 
  - Industrial d esigns  
222.  The representative of Timor -Leste informed that there were presently no laws a nd related 
substantive measures to ensure protection of industrial designs. In response to Member's question, 
he confirmed that his Government intended to comply with all provisions of the TRIPS Agreement 
applicable to LDCs, and its inherent standards, enforcement and dispute mechanisms , including by 
establishing the relevant protections for industrial designs  consistent with Part II, Section 4 of 
the TRIPS Agreement.  
- Patents  
223.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures  to ensure protection of  patents. In response to Member's question, 
he confirmed that his Government intended to establish patent laws  consistent with Part II, Section  5 
of the TRIPS Agreeme nt. 
- Plant variety protection  
224.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure plan variety protection.  In response to Member's question, 
he confirmed that his Government intended to establish plant variety protection laws consistent with 
Part II, Section 5, Article 27(3)(b)  of the TRIPS Agreement.  
- Layout designs of integrated circuits  
225.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure protection o f layout designs of integrated circuits.  In response to 
Member's question, he confirmed that his Government intended to join the Treaty on IP in Respect 
of Integrated Circuits (IPIC) and to establish layout designs of integrated circuit laws consistent with 
the TRIPS Agreement Part II, Section 6  of the TRIPS Agreement and the IPIC.  
- Requirements on undisclosed information , incl uding trade secrets and test data  
226.  The representative of Timor -Leste informed that no protection was currently provided  to 
undisclosed information, including trade  secrets and test data . In response to Member's question, 
he confirmed that his Government intended to join the Paris Convention  and to establish laws on 
trade secrets and test data consistent with Part II, Section 7 of the TRIPS Agreement and 
Article  10bis of the Paris Convention . 
3. MEASURES  TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS  
227.  The representative of Timor -Leste informed that  IPRs were not specifically protected in 
Timor -Leste due to the absence of specific statutes covering t hese matters. However, t o control 
the use of IPRs one c ould use judicial courts and the general civil proceedings  apply thereto.   
228.  As a temporary mechanism , companies run advertisements in local newspapers (commonly 
called "Cautionary Notices ") in order to publicize the fact that a given IPR was exclusively owned by JOB/ACC/TLS/4  
 
- 60 - 
 
  a certain company and that its unlawful use was forbidden. A Cautionary Notice was a simple 
advertisement that stated the name and ad dress of the IPR owner along with a description of 
the goods and services the IPR aims to protect. In case of a patent, an abstract was also included. 
In case of a design, it was common to include the relevant representation. Trademarks were 
generally displayed exactly as they are being used (word and/or devic e) with the corresponding list 
of goods or services. According to local practice, Cautionary Notices were written in Tetum and in 
English. Businesses generally republish ed Cautionary Notices every two years so that, in case of 
infringement, IPR owners ha d a recent publication to buttress their claim. Licen ces, changes of name 
or address, and assignments could  also be mentioned on republication , so that IPR owners ha d 
the most up -to-date proof of ownership or licen ce. Although there were no legal grounds for  this 
practice, the publication of Cautionary Notices remained the only procedure that interested parties 
could adopt in an attempt to overcome the absence of IPR registration and protection in Timor -Leste.  
4. ENFORCEMENT  
229.  Refer ring to paragraph [228], the representative of Timor -Leste said that the Cautionary 
Notices mechanism had proven to be an effective and efficient way of preventing trademark, patent 
and design infringements to date. Cautionary Notices granted a cause for a ction against 
infringement.  Companies indicated that, in the event of IPR infringement, sending a "cease and 
desist letter" along with a copy of a local newspaper containing the Cautionary Notice advertisement 
contributed to limiting counterfeited goods fr om entering or circulating in Timor -Leste, despite 
the absence of an IP law. If counterfeiting occurred, the Government was committed to seizing and 
destroying counterfeited goods when they were reported.  
230.  A Member further asked to clarify how the Governmen t of Timor -Leste determined the valid 
IP right holder of intellectual property, in spite of no IP registration, and how the Government 
determined the good in question was counterfeit goods. In response, the representative of 
Timor -Leste referred to Article 305 of the Code of Civil Procedure (Decree -Law No. 1/2006 of 
21 February 2006) that provided that, whenever a person showed sustained concern that somebody 
else was causing serious injury of difficult repair to his right, he/she c ould request specifically 
adequate conservatory or preventive measure to ensure the effectiveness of the right being 
threatened.  Decree -Law No. 23/2009 of 5 August 2009 on "Food Safety and Business Administrative 
Offences" established, in Article 21 (Fraud  on Goods) that anyone who imported or sold, as 
a wholesaler or retailer, with the intention of deceiving consumers in commercial relations, was 
punished with a fine of US$ 3,000.00 to US  $20,000.00 for goods and merchandise: (i) counterfeit, 
forged or dep reciated, making them appear authentic, unaltered or intact; or (ii) of a different nature 
or of a lower quality and quantity than those which they claim to possess or appear. Public authorities 
determined a counterfeit, forged or depreciated product by wa y of an administrative offence 
procedure based on Article 38.1. of Decree -Law No. 23/2009 , i.e., by way of an administrative 
offence procedure . The appeal c ould be submitted to the court. Such provision allowed the reporting 
of counterfeited goods to law e nforcement institutions (e.g. National Police of Timor -Leste, Customs 
Police), whereby informal Cautionary Notices could be used to sustain complaints and legal causes 
against occurrences of IPR infringements. He informed that his Government was aware that  this JOB/ACC/TLS/4  
 
- 61 - 
 
  system was weak and carried inefficiencies. It was committed to setting up a modern IP legal 
framework, as well as capable human capital and enforcement institutions.  
231.  He added that there  were a number of domestic statutes and multilateral treaties, t o which 
Timor -Leste was a party, which addressed IP enforcement, as descri bed in this section . Specifically, 
the Cust oms Code (Decree -Law No. 14/2017 of 5 April 2017 ) set forth the application of prohibitions 
or restrictions with regard to goods presented to customs on grounds of morality and public security, 
health protection, protection of the lives of people and animals, preservation of vegetables, 
the environment, protection of national artistic, historic, or archaeological property, or protection of 
industrial and commercial property.  Responding to Member's question on Article 59 that  stated that 
industrial and commercial property could  be prohibited or restricted , he informed that 
the Government intended to grant IPR  holders in Timor -Leste the right to lodge an application for 
the suspension of goods suspected of being counterfeit or pirated .  
- Civil judicial procedures and remedies  
232.  The representative of Timor -Leste informed that t here were no civil judicial procedures and 
remedies spec ifically prepared to address IP -related rights. In response to Member's question, 
he added that in a dispute regarding IPRs , the parties concerned could have recourse to the general 
civil procedure to safeguar d their rights, including by means of "unspecified precautionary measures" 
to prevent infringement of IPRs. He confirmed that his Government intend ed to develop and ensure 
the enforcement of the provisions of the TRIPS Agreement applicable to LDCs,  includi ng 
the establishment and enforcement of Civil judicial procedures and remedies consistent with Part  III, 
Section 2  of the TRIPS Agreement . 
- Administrative procedures and remedies  
233.  The representative of Timor -Leste informed that t here were no administrative procedures 
and remedies in place. In response to Member's question, he confirmed that his Government 
intend ed to develop and ensure the enforcement of the provisions of the TRIPS A greement applicable 
to LDCs,  including the establishment and enforcement of administrative procedures consistent with 
Part III, Section 2  of the TRIPS Agreement . 
- Provisional measures  
234.  The representative of Timor -Leste informed that t here were no provisional measures in 
place. In response to Member's question, he confirmed that his Government intend ed to develop 
and ensure the enforcement of the provisions of the TRIPS Agreement applicabl e to LDCs,  including 
the establishment and enforcement of provisional measures  consistent with Part III, Section 3  of 
the TRIPS Agreement.  
- Special border measures  
235.  The representative of Timor -Leste informed that under Article 11 of Decree -Law No. 9/2004 
of 19 May 2004  on "Import, Storage and Circulation of Products Subject to Selective Excise Tax ", JOB/ACC/TLS/4  
 
- 62 - 
 
  companies could  issue a supporting document for every good cleared from a Customs Bonded 
Warehouse (Loading Receipt) that s hould , among other information, include information on the trade 
name of the product.  
236.  Furthermore, UNTAET Executive Order No. 2002/12 of 18 May 200 2 on "Trade of goods 
bearing the national symbols of Timor -Leste", also included provisions on enforcement  at the border . 
Article 3.1 of the Order established that failure to fully and immediately comply with this Order 
constituted an offense and resulted in its prompt enforcement by all lawful means available to 
the Timor -Leste Public Administration . Under Article 3.4, these provisions were in addition to, and 
in no way limited, substituted, or intervened with prosecuting any criminal proceeding or the 
imposition of any criminal sanctions pertaining to the unauthorized use of trademarks, trade names, 
and similar items of intellectual and industrial property rights with respect to the national symbols.  
237.  Additionally, Article 27 of the Convention on Internatio nal Civil Aviation provided for 
exemption from seizure on patent claims . While engaged in international air navigation, any 
authorized entry of aircraft of a contracting State into the territory of another contracting State or 
authorized transit across the  territory of such State with or without landings sh ould not entail any 
seizure or detention of the aircraft or any claim against the owner or operator thereof or any other 
interference therewith by or on behalf of such State or any person therein, on the ground that 
the construction, mechanism, parts, accessories or operation of the aircraft was an infringement of 
any patent, design, or model duly granted or registered in the State whose territory was entered by 
the aircraft, it being agreed that no deposi t of security in connection with the foregoing exemption 
from seizure or detention of the aircraft sh ould in any case be required in the State entered by such 
aircraft. Pursuant to Article 15 of the World Health Organization (WHO) Framework Convention on 
Tobacco, addressing illicit trade in tobacco products, the parties recognized that the elimination of 
all forms of illicit trade in tobacco products, including smuggling, illicit manufacturing and 
counterfeiting, and the development and implementation of re lated national law, in addition to 
sub-regional, regional and global agreements, were essential components of tobacco control. With 
Timor -Leste being party to both Conventions, these provisions applied as  reflected  in its domestic 
legal framework.   
238.  He conf irmed that his Government intended to develop and ensure the enforcement of 
the provisions of the TRIPS Agreement applicable to LDCs, including the establishment and 
enforcement of special border measures procedures consistent with Part III, Section 4 of the TRIPS 
Agreement.  
- Criminal p rocedures  
239.  The representative of Timor -Leste informed that  there are no criminal procedures in place. 
In response to Member's question , he confirmed that his Government intended to develop and 
ensure the enforcement of the provisions of the TRIPS Agreement applicable to LDCs, including 
the establishment and enforcement of criminal  procedures consistent with Part III, Section 5 of 
the TRIPS Agreement.  JOB/ACC/TLS/4  
 
- 63 - 
 
  VI. POLICIES AFFECTING TRADE IN SERVICES   
Timor -Leste submitted an initial offer on services in June 2021 (see document WT/ACC/SPEC/TLS/3).  
240.  The representative of Timor -Leste informed that, d epending on the nature and the length of 
the activities to be carried out in Timor -Leste, foreigners and foreign entities  were able to perform 
activities  and provide services in the country provided that they establish ed a legal presence in 
Timor -Leste, through the registration of permanent represent ation of a foreign entity as a branch or 
as a local affiliate  (see Annex 16 ).  
241.  In this regard, h e explained that, for a non -resident entity to be permanently established  in 
Timor -Leste, it had to, inter alia : (i) incorporate a local company or register a local permanent 
representation (branch) in Timor -Leste; (ii) have a fixed place of business in Timor -Leste; (iii) hire 
personnel to perform work in Timor -Leste for a period exceeding 60 days in aggregate within a ny 
given 12 -month period; or/and, (iv) maintain an entity that could be deemed as a "dependent agent" 
in Timor -Leste. Foreign service providers  had to comply to four types of requirements which also 
applied to local operating businesses: (i) obtaining a Ta xpayer Identification Number (TIN); 
(ii) obtaining a business licen ce, when a licen ce or an authorization was required to exercise activi ty; 
and, (iii) registering the business entity with the Commercial  Registration  and Verification Service 
(SERVE) ; and (iv) comply ing with continuing obligations to register particular facts or events that 
apply to each type of business entity.  
242.  A Member enquired about the estimated timeframe that foreign service providers would 
normally face in complying with these requirements, and whether such requirements and 
the timeframe differed for domestic service providers. The representative of Timor -Leste said that 
documents required for submission by foreign entities included: (i) Act of Deliberation: where foreign 
compan ies were interested in establishing and registering their firm and to create a Permanent 
Establishment (PE) of such company; (ii) original passport, company 's bylaw, marriage certificate 
(if applicable), which had to be certified by a notary at the country  of origin, prior to being submitted 
to Timor -Leste 's mission for final certification attesting its legitimacy ; (iii) i dentified location for 
business activity.  Once these documents were submitted, should they satisfy the above 
requirements, SERVE processe d them in five business days.  He added that domestic and foreign 
nationals and legal entities had to comply with the same requirements as foreigners or foreign 
entities, with the exception of the Act of Deliberation, which was only required for  foreign ent ities.   
243.  Timor -Leste's measures affecting movement of natural persons are contained in Annex 17 .  
244.  The representative of Timor -Leste informed that, Article 54.4 of the Constitution  and 
Article  7.1 of Law No. 13/2017 of 5 June 2017 on "Special Regime for Determination of Ownership 
of Immovable Property"  limited land ownership to national citizens of Timor -Leste. Article 2 of 
the Legal Framework on Real Estate Property (Law No.  1/2003 of 10 March 2003) elaborated that 
landowners could be either national cit izens or the State . Furthermore, Law No. 13/2017 of 
5 June 2017 on "Special Regime that Defines the Ownership of Real Estate" (Land Law) provided 
that only legal entities 100% owned by Timor -Leste nationals were entitled  to purchase and own JOB/ACC/TLS/4  
 
- 64 - 
 
  land in Timor -Leste. Foreign persons conducting legal activities in Timor -Leste could only  lease land 
for up to 50  years. Under Article 25.1 of the Private Investment Law, private investors were entitled 
to lease land for 50 years , renewable for periods of 25 years to a total of 100 years . For other 
relevant sources of laws regarding interests in real estate, see  Annex 18 . 
245.  There were a number of Government ministries, agencies and professional associations that 
played a role in the regulation  of services ac tivities. The principal Governmental bodies were: 
(i) Ministry of Tourism, Commerce and Industry ; (ii) Ministry of Finance; (iii) Ministry of Public 
Works, Transports, and Communication; (iv) Ministry of Agriculture and Fisheries; (v) SERVE; and, 
(vi) Mini stry of Health.  The full list of Ministries in contained in Annex 19.  He added that Timor -Leste 
had its own list of Economic Activities Classification (EAC) published as an annex to  Decree -Law   
No. 34/2017 of 27 September 2017 on the "Licensing of Economic Activities ". For purposes of WTO 
accession process, the  United Nations (UN) Central Product Classification, as recorded in document 
MTN.GNS/W/120 of 10 July 1991, was employed.  
246.  Decree -Law No. 34/2017 also prohibit ed commercial activities including  wholesale, retail, 
general commerce, importing and exporting of goods and supply of services as principal or 
commercial agent without authorization. In addition, specialized legislation prohibit ed carrying on of 
certain businesses without a special licen ce issued by regulatory agencies .  
247.  For example, commercial banks operating in Timor -Leste had to obtain a licen ce from 
the Central Bank of Timor -Leste  (CBTL)  and have a minimum paid -up capital of US$ 2,000.00. 
Insurance companies were also subject to licens ing, should be established in a form of a limited 
liability enterprise / joint stock company and have paid -up capital of more than US$ 500,000.00. 
Companies working in the private security services were required to have a CEO with Timor -Leste 
nationality.   
248.  Legal persons in the business of social games, slot machines, and traditional games had to 
obtain a prior authorization to operate and had to be legally incorporated under the laws of 
Timor -Leste. They had to: (i) prove to have good reputation and demonst rated technical, economic 
and financial capacity to develop this activity; (ii) apply for a concession to develop this activity, and 
(iii) have a minimum paid -up capital of US$ 400,000 as well as a banking account balance no less 
than US$ 250,000.  
249.  Referri ng to section on "Investment regime", he added that  other important areas where 
regulatory licensing was required include d, amongst others, oil and gas upstream and downstream 
activities (subject to licensing/authorization by the National Petroleum Authority  under Law 
No. 3/2005 on Petroleum Activities ), and mining.  Carrying on a commercial activity without 
the appropriate authorization was an offenc e with a penalty between US$  1,000 an d US$  10,000  to 
be imposed to those who d id not have an authorization .  
250.  The representative of Timor -Leste noted that the  general policy was to promote open 
competition in all  services  sectors. Investors or companies could  employ foreign personnel or JOB/ACC/TLS/4  
 
- 65 - 
 
  experts. The Government policy require d that all major business es ensure d that a minimum 
percentage of the value of labour in all major projects in Timor -Leste was dedicated to the 
employme nt or accredited training  of citizens of Timor -Leste.  He further informed that there were 
no measures in place inconsistent with the most -favoured -nation (MFN) treatment.  
251.  At the same time , monopoly in electricity distribution and water supply still existed. Public 
Electricity Company of Timor -Leste (EDTL-EP) operate d in this area . For social reasons, there was 
also a public funeral transportation service provided by the State , given the lack of coverage and 
price of private services.  Foreign national s were also prohibited from carrying on some commercial 
activities and so could not obtain a licence to carry on business in the  reserved categories, as 
described in section "Investment regime" . There was a list of occupations that could not be 
performed by foreign nationals, as follows: (i) servant in a bar, restaurant, hotel and shops; 
(ii) public drivers; (iii) receptionist; (iv) housekeeper, except individuals qualified to work with 
vulnerable people or child; (v) hairdresser, except foreign nationals with specific training; 
(vi) security guard; (vii) clerk; (viii) warehouse supervisor; (ix)  assistant in any job; (xi) photocopier 
work; (xii) gardener; (xiii) traditional market  and street vendor.  Artisanal/traditional fishing permits 
were also granted only to Timor -Leste nationals  (citizens and legal entities) . Activities that were 
reserved to nationals also included providing universal postal service and public communication 
services and developm ent and exploration of national parks, marine or land reserves or other 
protected areas.  
252.  Further, h e informed  that t he existing limitation s on the participation of foreign capital were 
the following: (i) press services sector/media : foreign capital was limited up to 30% of the share 
capital; and (ii) a ccess to road public carrier : business was only available to Timor -Leste citizens or 
to a legal persons with over 50% of share capital controlled by Timor -Leste citizens .  
253.  With respect to requirements on specific types of legal entity through which a service may 
be supplied, he noted that, in the telecommunications sector specific regulations applied that 
required for the service provider to be registered as a corporate body in Timor -Leste and to be 
registered as such within the National Regulatory Authority. In the air transport, services could only 
be provided by legal persons incorporated under the laws of Timor -Leste. In the construction sector, 
the certification and registration of c ivil construction and technical consulting companies were 
mandatory for them to be able to bid for public procurement tenders.   
254.  Detailed i nformation on regulation in specific services sectors is contained in Annex 2 0. 
255.  Referring to Annex 2 0, a Member asked for a clarification on the requirements  applied to  
foreign lawyers who had  to be registered with the Centre for Legal Training (CLT) , including the 
requirement to h ave knowledge of the Timor -Leste legal framework , and how this knowledge was 
assessed by the CLT . The representative of Timor -Leste explained that , initial training for careers in 
the judiciary, including public prosecution and public defence , was held at the  Legal and Judicial 
Training Centre (CFJJ/CLT) of the Ministry of Justice. Exceptionally, and until the establishment of 
the Timor -Leste Bar Association, the CLT maintain ed all competencies for the training of lawyers.  JOB/ACC/TLS/4  
 
- 66 - 
 
  The examination w as held at the CLT, where the test was conducted by a panel nominated directly 
by the Minister of Justice.  The examination was composed of three tests: (i) a written test aim ed to 
assess the knowledge and understanding of the resolution of civil , commercial and criminal  law 
cases, as well as civil and criminal procedural law); (ii) an interview test which aim ed to evaluate 
the candidate 's legal knowledge, critical thinking ability  and argumentation; and (iii) a psychological 
test. 
256.  A Member also asked to provide information on  the regulatory  framework for  environmental 
services relating to wastewater treatment, disposal and sanitation . The representative of 
Timor -Leste responded that this services sector was undergoing reforms with an aim to  develop a 
modern legal framework. He referred to Articles 41 -42 of Decree -Law No. 26/2012 of 4 July 2012  
on "Basic Law of the Environment" which determined the State's competence to establish the 
mechanisms necessary to ensure the appropriate treatment of  domestic, commercial and industrial 
wastewater and sewage effluents. The Law required that a ny establishment or plant which evacuate d 
wastewater had to  ensure that it was cleaned in accordance with the environmental standards.  
The import of hazardous wast e was prohibited , while t he identification, control, production, 
transportation, storage, export and use of hazardous waste was subject to special legislation . 
Furthermore, considering the environmental impact of urban solid waste on fresh water, also 
referred to the solid waste management principles established by Article 10 of Decree -Law 
No. 2/2017 of 22 March 2017 on "Urban Solid Waste Management System"  which provided that the 
provision of the urban waste management service obey ed the principles of publ ic health and the 
environment; promotion of universality and equal access; quality and continuity of service and 
protection of users' interests; economic and financial sustainability of services; user -payer principle; 
responsibility of the citizen s adoptin g preventive behaviours  in the matter of waste production, as 
well as practices that facilitate their reuse, recycling or other forms of valorisation ; transparency in 
the provision of services; ensuring efficiency and continuous improvement in the use of t he 
associated resources, responding to the evolution of the technical requirements and the best 
environmental techniques available; and promoting economic and social solidarity, correct territorial 
planning and regional development.  
257.  Referring to Annex 2 0, a Member also enquired which services sectors/sub -sectors were 
considered as sensitive and highly sensitive . The representative of Timor -Leste responded that 
Timor -Leste ha d a straightforward economic structure, while it was still in the early stages of 
developing policies  and legislation on the services sectors. At the same time,  as described in section 
"Investment regime", according to Timor -Leste 's Negative Investment List  the following activities  
were prohibited for both national and foreign investment:  (i) highly sensitive: criminal activities,  
activities related to environmental protection areas, arms and ammunition production and 
distribution; and  (ii) sensitive: activi ties related to the offense of traditional customs,  postal and 
courier services, activities related to funeral services.  Other than these , Timor -Leste adopt ed a 
liberalized approach to the  services sector, with certain limitations on market access and nati onal 
treatment applicable to foreign investments and foreign nationals.  JOB/ACC/TLS/4  
 
- 67 - 
 
  VII. TRANSPARENCY  
- Public ation  of information on trade  
258.  The representative of Timor -Leste informed that legal instruments were only effective upon 
publication  in "Jornal da República" . Legal instruments were also publ ished online on the website of 
"Jornal da República ", which was part of the website of the Mini stry of Justice at  www.mj.gov.tl . 
Most of the legal instruments were made available by provision of a link to the relevant issue of 
"Jornal da República".  
259.  The website of "Jornal da República"  also contained  a webpag e of the Office of Legal Affairs 
of the United Nations Integrated Mission in Timor -Leste (UNMIT) : 
http://www.jornal.gov.tl/lawsTL/index -e.htm , which  include d the UNTAET Regulations enacted 
between October 1999 and May 2002 , and a  webpage with  legislation from independence in 
May 2002 until the UN ceased to update the website in mid -2012: http://www.jornal.gov.tl/lawsTL/ -
RDTL -Law/index -e.htm . It include d links to the official  legal instrument s in Portuguese and, in some 
cases, links to unofficial English translations.  
260.  In addition, the website of the Government of Timor -Leste (http://timor -
leste.gov.tl/?lang=en ) contain ed a selec tion of legislation in six categories. The website was 
regularly updated and provided information on the main policy decision taken weekly by the Council 
of Ministers, in three languages, Portuguese, Tetum and English. Some of the  websites of the 
individua l Ministries, and the website  of the Central Bank of Timor -Leste (CBTL) , also contain ed links 
to relevant  legislation.  
- Notifications  
261.  The representative of Timor -Leste informed that his Government recognize d the importance 
of notification requirements under the WTO Agreements. Thus, it aspire d to submit all initial 
notifications required by the WTO Agreements within six months from the membership date.  Any 
laws, regulations, or other measures subsequently ena cted by Timor -Leste, and which were required 
to be notified pursuant to the WTO Agreement s, would be notified in a time and manner consistent 
with WTO requirements.  
262.  Responding to a question from a Member on how the Government intended to manage its 
notification obligations, the representative of Timor -Leste explained that, once Timor -Leste became  
a WTO Member, it would adhere to its initial notification obligations and would immediately notify 
any further changes to Members in regard to each amendment in i ts laws, legislations or other 
measures subsequently enacted in accordance with the WTO  rules. 
VIII.  TRADE AGREEMENTS  
263.  The representative of Timor -Leste informed that Timor -Leste was not a party to any customs 
union or fr ee trade agreement or to any other bilateral or multilateral agreements relating to trade  
in goods and services , investment or intellect ual property.  It did  not belong to any  regional trade or  JOB/ACC/TLS/4  
 
- 68 - 
 
  labour market integration agreement.  The country  was a party to the following agreements: 
(i) Agreement between the Timor -Leste and Indonesia on Traditional Border Crossings and 
Regulated Markets, signed in Jakarta, Indonesia, on 11 June 2003; and, (ii) Cooperation Agreement 
between Member States of the  Community of Portuguese Language Countries (CPLP) on Cinema and 
Audio -visuals, signed in Luanda, Angola, on 14 May 2005 , as well as a number of bilateral 
agreements  (including BITs) , listed in Annex  21. Responding  to Member's question, he clarified that 
there were no benefits/privileges associated with trade in services in the se bilateral agreements.  
Timor -Leste  also benefit ed from the following unilaterally granted preferential trade arrangements 
for its exports:  
i. US Scheme of General System of Preferences;  
ii. EU Generalized System of Preferences;  
iii. Australia 's General System of Preferences; and  
iv. New Zealand 's General System of Preferences.   
264.  At the same time, the Government recognized the importance of regional cooperation. Since 
2011, when Timor -Leste had officially applied to become a member of ASEAN, it had been 
undertaking the necessary institutional and legal reforms towards full compliance with  rules of  
the ASEAN Economic Community.  
265.  In response to Member's question on his Government's plans to initiate trade negotiations 
to conclude  trade agreement s, the representative of Timor -Leste said that the Government was 
willing to consider entering into  such negotiations and eventually sign trade agreements, to 
safeguard mutual interests and enhance mutual benefits, while honouring  commitments inherent to 
WTO accession. He elaborated that the Government put forth necessary technical preparations  to 
establish one negotiating t eam to adhere Timor -Leste into multilateral and bilateral trade 
agreements . Such effort was reflected in a number of  trade -related trainings completed by 
the government officials . In parallel, considering Timor -Leste 's commitment to accede to the WTO 
and ASEAN, the Government continue d to work on strengthen ing its institutional and legal 
framework  to be in conformity with the se agreements.  State of play regarding Timor -Leste's ASEAN 
accession  is provided in Annex 22. 
266.  The list of multilateral organizations , trade -related programs of other  multilateral 
organizations  to which T imor-Leste was a member /participant  is provided in Annex 23.  
CONCLUSIONS  
[to be completed]  
_______________   JOB/ACC/TLS/4  
 
- 69 - 
 
  ANNEX  1  
Laws, Regulations and Other Information Provided to the Working Party  by Timor -Leste  
Legislation/Regulation  Legislation Notice  
ECONOMIC POLICIES  
UNTAET Regulation No. 2001/14, On the Official Currency and Legal Tender of 
East Timor  WT/ACC/TLS/5  
Law No. 1/2003, Legal Framework on Real Estate Property (Land Law)  WT/ACC/TLS/5  
Decree -Law No. 14/2003, Legal Regime for Public Companies  WT/ACC/TLS/5  
Decree -Law No. 20/2003, Legal Tender in Timor -Leste  WT/ACC/TLS/5  
Decree -Law No. 19/2004, Legal Regime of Property -Official Allocation and Leasing 
of Private Property of the State  WT/ACC/TLS/5  
Law No. 4/2005, Domestic Investment Law  WT/ACC/TLS/5  
Law No. 5/2005, Foreign Investment Law  WT/ACC/TLS/5  
Government Decree No. 5/2005, Rules of Procedure for Domestic Investment  WT/ACC /TLS/9  
Government Decree No. 6/2005, Rules of Procedure for Foreign Investment  WT/ACC/TLS/5  
Law No. 8/2005, Petroleum Tax  WT/ACC/TLS/5  
Law No. 13/2005, Petroleum Activities Law  WT/ACC/TLS/5  
Decree -Law No. 7/2005, Public Tender of Petroleum Contract  WT/ACC/TLS/5  
Decree -Law No. 28/2008, Regulate Public Supply of Essential Goods  WT/ACC/TLS/5  
Government Resolution No. 20/2008, on Public Supply of Essential Goods  WT/ACC/TLS/7  
Decree -Law No. 20/2008, National Petroleum Authority  WT/ACC/TLS/5  
Government Decree No. 13/2008, Regulation of Government Intervention in Public 
Supply and Prices of Essential Goods  WT/ACC/TLS/5  
Ministerial Diploma No. 6/2008, Price Stabilization Measures, to Combat Inflation 
and Speculative Prevention; Regulation on Gov ernment Intervention in the Market  WT/ACC/TLS/5  
Public Instruction No. 4/2009, Importation and Exportation of Cash  WT/ACC/TLS/5  
Government Resolution No. 13/2012, Regulate Maximum Sales Margin of Certain 
Essential Goods  WT/ACC/TLS/7  
Ministerial Diploma No. 6/MTCI/III/2011, Regulation on Sales Price of Local Maize  WT/ACC/TLS/7  
Law No. 4/2011, Crimes of Monopolization and Speculation  WT/ACC/TLS/5  
Ministerial Diploma No. 11/MTCI/VI/2011, Regulate Public Supply of Rice and 
Other Essenti al Goods  WT/ACC/TLS/7  
Law No. 5/2011, Organic Law of the Central Bank of Timor -Leste of Timor -Leste 
(CBTL)  WT/ACC/TLS/5  
Decree -Law No. 29/2011, Fair Price  WT/ACC/TLS/5  
Decree -Law No. 31/2011, Timor Gap – Timor Gas and Petroleum, Public Enterprise  WT/ACC/TLS/9  
Law No. 14/2011, Private Investment Law  WT/ACC/TLS/5  
Law No. 17/2011, Anti -Money Laundering and Counter Financing of Terrorism Law  WT/ACC/TLS/5  
Law No. 4/2012, Labour Code  WT/ACC/TLS/5  
Decree -Law No. 1/2012, Downstream Sector  WT/ACC/TLS/5  
Law No. 5/2012, Strike Law  WT/ACC/TLS/5  
Ministerial Diploma No. 14/2012, Public Supply of Rice  WT/ACC/TLS/7  
Decree -Law No. 42/2012, Legal Framework for Public Private Partnerships  WT/ACC/TLS/5  
Ministerial Diploma No. 1/2013, Regulation on Public Supply of Rice and 
Standardisation of Price  WT/ACC/TLS/7  
Ministerial Diploma No. 2/2013, Public Supply of Rice in Oecusse Ambeno  WT/ACC/TLS/7  
Law No. 5/2013, Anti -Money Laundering and Counter Financing of Terrorism Law 
(1st Amendment ) WT/ACC/TLS/5  
BCTL Regulation No. 1/2013, Licensing and Supervision of Money Transfer 
Operators  WT/ACC/TLS/9  
Decree -Law No. 2/2014, 1st Amendment to Decree -Law No. 42/2012 of 7 
September 2012 on the Approval of the Legal Framework for Public Private 
Partnerships  WT/ACC/TLS/7  
Decree -Law No. 8/2014, Legal Regime for Public Private Partnerships  WT/ACC/TLS/5  
Decree -Law No. 16/2014, Financial Intelligence Unit  WT/ACC/TLS/5  
Decree -Law No. 24/2014, Legal Regime to Establish Tourism Policy for Timor -
Leste  WT/ACC/TLS/7  
Decree -Law No. 17/2015, National Payment System  WT/ACC/TLS/7  
Government Resolution No. 43/2015, Government Participation in the Investment 
of the Extraction of Cement and Limestone  WT/ACC/TLS/5  
Government Resolution No. 44/2015 , Participation of Timor Gap, Public Enterprise, 
in Oil Exploration  WT/ACC/TLS/7  
Decree -Law No. 45/2015, Establishment of Investment and Export Promotion 
Agency, Public Institute (TradeInvest)  WT/ACC/TLS/7  
Decree -Law No. 1/2016, National Petroleum Autho rity WT/ACC/TLS/5  JOB/ACC/TLS/4  
 
- 70 - 
 
  Legislation/Regulation  Legislation Notice  
Government Decree No. 7/2016, National Labour Council  WT/ACC/TLS/7  
Law No. 8/2016, Consumer Protection Law  WT/ACC/TLS/5  
Decree -Law No. 32/2016, Legal Regime for Offshore Oil Operations in Timor -Leste  WT/ACC/TLS/5  
Government Decree No. 13/2016, Regulation on Bank Account for PPP of Tibar 
Port WT/ACC/TLS/7  
ANPM Regulation No. 2/2016, Downstream Commercialization Activities (regulates 
on registration and licensing for selling of fuels, biofuels and lubricants)  WT/ACC /TLS/9  
Government Resolution No. 36/2016, Exploration of Construction Material 
Reserved for Local Companies  WT/ACC/TLS/7  
Ministerial Diploma No. 64/2016, Specific Rules for Licensing of Mineral Exploration 
Activities  WT/ACC/TLS/9  
Decree -Law No. 39/2016, Sub -division of Onshore Exploration Block  WT/ACC/TLS/7  
Government Resolution No. 9/2017, National Policy on ICT in 2017 -2019 WT/ACC/TLS/9  
Government Resolution No. 16/2017, National Tourism Policy 2030  WT/ACC/TLS/5  
Public Instruction No. 4/2017 , Importation and Exportation of Cash  WT/ACC/TLS/9  
Law No. 8/2017, Expropriation for Public Purposes  WT/ACC/TLS/9  
Law No. 10/2017, Commercial Companies Law  WT/ACC/TLS/5  
Joint Ministerial Diploma No. 32/2017, Regulation of Price for the Re -Sale of Rice  WT/ACC/TLS/7  
Law No. 11/2017, Migration and Asylum  WT/ACC/TLS/9  
Law No. 13/2017, Special Regime for Determination of Ownership of Immovable 
Property (Land Law)  WT/ACC/TLS/5  
Government Decree No. 28/2017, Mandatory Establishment of Supervision body or 
Auditor External in Commercial Company  WT/ACC/TLS/5  
Government Decree No. 27/2017, Model of Constituent Act of Commercial 
Company  WT/ACC/TLS/5  
Government Resolution No. 44/2017, National Employment Strategy (2017 – 
2030)  WT/ACC/TLS/5  
Law No. 15/2017, P rivate Investment Law  WT/ACC/TLS/5  
Regulation No. 3/2017, Minting and Use of Coins  WT/ACC/TLS/7  
Government Decree No. 4/2019, First Amendment to Government Decree 
No. 2/2018, on Procedure Regulation for Private Investment  WT/ACC/TLS/7  
Decree -Law No. 16/2019, 1st Amendment to Decree -Law No. 3/2011 of 26 
January 2011, Statutes of the National Commercial Bank of Timor -Leste, S.A.  WT/ACC/TLS/7  
Law No. 4/2019, on Special Labor and Migration Regime Applicable to the Bayu -
Undan Project; addit ional applicable provisions in Law No. 11/2017, Migration and 
Asylum  WT/ACC/TLS/5  
Law No. 1/2019, 1st Amendment to the Petroleum Activities Law No.  13/2005, of 
2 September 2005  WT/ACC/TLS/7  
Law No. 6/2019, 2nd Amendment to the Petroleum Activities Law No . 13/2005, of 
2 September 2005  WT/ACC/TLS/9  
Resolution No. 9/2020, Integrated Project on Unique Identifier of Timorese citizens 
and residents  WT/ACC/TLS/15  
Government Resolution No. 38/2020, Public Administration Reform Program 2019 -
2023 WT/ACC/TLS/17  
Economic Recovery Plan of Timor -Leste 2020 -2023 WT/ACC/TLS/19  
CBTL Instruction No. 8/2009 , Approval of Public Instruction No. 4/2009 om 
"Importation and Exportation of Cash  WT/ACC/TLS/19  
CBTL Instruction No. 5/2017 , Customer Identification , Record Keeping and Transaction 
Report  WT/ACC/TLS/19  
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
Constitution of Timor -Leste  WT/ACC/TLS/5  
Law No. 1/2002, Publication of Acts  WT/ACC/TLS/5  
Law No. 2/2002, Interpretation of Applicable Law  WT/ACC/TLS/5  
Law No. 10/2003, Interpretation of Section 1 of Law No. 2/2002 of 7  August 2002, 
and Sources of Law  WT/ACC/TLS/5  
Law No. 5/2004, Statutes of Members of Parliament  WT/ACC/TLS/5  
Criminal Procedure Code - Decree -Law No.  13/2005  WT/ACC/TLS/5  
Civil Procedure Code - Decree -Law No.  1/2006  WT/ACC/TLS/7  
Resolution by the National Parliament No. 25/2008, Ratification of UNCAC  WT/ACC/TLS/17  
Decree -Law No. 32/2008, Administrative Proced ures WT/ACC/TLS/5  
Law No. 2/2009 of 6 May 2009 on Protection of Witnesses  WT/ACC/TLS/17  
Decree -Law No. 9/2009, PNTL - National Police of Timor -Leste  WT/ACC/TLS/5  
Penal Code - Decree -Law No.  19/2009  WT/ACC/TLS/5  
Law No. 11/2009, Territorial Administrative Division (Local Government)  WT/ACC/TLS/5  
Law No. 6/2009 on 1st Amendment, by Parliamentary Consideration, to the Penal 
Code  WT/ACC/TLS/5  JOB/ACC/TLS/4  
 
- 71 - 
 
  Legislation/Regulation  Legislation Notice  
Civil Code - Law No. 10/2011 of 14  September 2011  WT/ACC/TLS/5  
Law No. 3/2004 of 14 April 2004, Firs t amended by Law No. 2/2016 of 3 February 
2016 on Political Parties  WT/ACC/TLS/17  
Government Decree No. 1/2015, Public Finance Procedures and Rules for 
Execution of State Budget 2015  WT/ACC/TLS/9  
Rules of Procedure of the National Parliament No. 1/2016   WT/ACC/TLS/9  
Law No. 4/2016, Territorial Administrative Division (Local Government)  WT/ACC/TLS/7  
Law No. 6/2017, Basis for Territorial Planning  WT/ACC/TLS/7  
Joint Ministerial Diploma No. 42/2017, Regulation on Municipality Administration 
and Authority in Public Works Domain  WT/ACC/TLS/7  
Joint Ministerial Diploma No. 43/2017, Regulation on Municipality Administration 
and Authority in Water and Sanitation  WT/ACC/TLS/7  
Government Resolution No. 51/2017, Rules of Procedure for the Council of 
Ministers  WT/ACC/TLS/7  
Decree -Law No. 14/2018, Organic Structure of the VIII Constitutional Government  WT/ACC/TLS/9  
Resolution No. 12/2019, Code of Conduct of Members of the Government  WT/ACC/TLS/17  
Decree -Law No. 27/2020  
of 19 June 2020, 2nd  Amendment to Decree -Law No. 14/2018, Organic Structure 
of the VIII Constitutional Government  WT/ACC/TLS/9  
Law No. 7/2020, Preventing and Combatting Corruption  WT/ACC/TLS/15  
Annual Budget Law for 2021 (Law No. 14/2020 of 29 December 2020, as amended 
by Law No. 8/2021 of 3 May 2021)  WT/ACC/TLS/15  
Law No. 3/2021, Authorizing the Government to change the Civil Procedure Code  WT/ACC/TLS/15  
Law No. 6/2021, Legal Regime of Voluntary Arbitration and 1st Amendment to the 
Civil Procedure Code  WT/ACC/ TLS/15  
Resolution No. 8/2021, Timor -Leste's Accession to the 1958 New York Convention 
on the Recognition and Enforcement of Foreign Arbitral Awards  WT/ACC/TLS/15  
POLICIES AFFECTING TRADE IN GOODS  
Executive Order No. 2002/12, on Trade in Goods Bearing National Symbols 
(UNTAET)  WT/ACC/TLS/5  
Decree -Law No. 19/2003, Regulation on Port Tariff  WT/ACC/TLS/5  
Decree -Law No. 21/2003, Quarantine and Sanitary Controls of Imported and 
Exported Goods  WT/ACC/TLS/5  
Decree -Law No. 6/2004, General Bases of the Legal Regime for Fisheries and 
Aquaculture Management and Regulation  WT/ACC/TLS/5  
Government Decree No. 5/2004, General Regulation on Fishing  WT/ACC/TLS/5  
Decree -Law No. 12/2004, Regulation of Pharmaceutical A ctivities  WT/ACC/TLS/5  
Ministerial Diploma No. 4/2004, Percentage of Insurance of Imported Goods  WT/ACC/TLS/17  
Ministerial Diploma No. 10/2004, Licensing fees for pharmaceutical activities  WT/ACC/TLS/17  
Ministerial Diploma No. 12/2004, Classification o f Medicines  WT/ACC/TLS/17  
Decree -Law No. 4/2005, General Bases of the Legal Regime for Fisheries and 
Aquaculture Management and Regulation   WT/ACC/TLS/5  
Decree -Law No. 10/2005, Legal Regime for Procurement  WT/ACC/TLS/5  
Decree -Law No. 11/2005, Legal Regime for Public Contract  WT/ACC/TLS/5  
Decree -Law No. 12/2005, Legal Framework on Administrative Offences in Public 
Procurement  WT/ACC/TLS/5  
Decree -Law No. 8/2006, Regulation on Customs Duties  WT/ACC/TLS/5  
Government Decree No. 1/2006, Rules and Procedures to Implement Quarantine 
and Sanitary Controls of Imported and Exported Goods  WT/ACC/TLS/5  
Decree -Law No. 14/2006, 1st Amendment to the Legal Regime for Procurement  WT/ACC/TLS/5  
Law No. 8/2008, Taxes and Duties Act  WT/ACC/TLS/5  
Decree -Law No. 24/2008, 2nd Amendment to the Procurement Legal Regime  WT/ACC/TLS/5  
Decree -Law No. 5/2009, Licensing for Sale of Drinking Water  WT/ACC/TLS/5  
Decree -Law No. 2/2009, Special Procurement Legal Regime for Autonomous 
Service for Drugs and Heal th Equipment (SAMES)  WT/ACC/TLS/5  
Decree -Law No. 23/2009, Food Safety and Business Administrative Offences  WT/ACC/TLS/5  
Ministerial Diploma No. 1/2009, Procedure for Issuance of Certificate of Origin for 
Coffee  WT/ACC/TLS/7  
Government Decree No. 8/2009, Regulation on Special Procurement for Priority 
Sector  WT/ACC/TLS/7  
Decree -Law No. 29/2009, Special Procurement for Priority Sector  WT/ACC/TLS/5  
Decree -Law No. 1/2010, 3rd Amendment to the Procurement Legal Regime  WT/ACC/TLS/5  
Decree -Law No. 2/2 010, Special Procurement for Construction Work Up to US$ 
250,000  WT/ACC/TLS/5  
Decree -Law No. 3/2010, Organic of the Procurement Monitoring and Technical 
Commission  WT/ACC/TLS/5  JOB/ACC/TLS/4  
 
- 72 - 
 
  Legislation/Regulation  Legislation Notice  
Decree -Law No. 14/2010, Temporary Procurement Measures  WT/ACC/TLS/5  
Decree -Law No. 11/2011, National Development Agency  WT/ACC/TLS/5  
Decree -Law No. 14/2011, National Procurement Commission  WT/ACC/TLS/5  
Decree -Law No. 15/2011, 4th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/5  
Decree -Law No. 30 /2011, Conditions and Procedures to be Observed in relation to 
the Import of Motor Vehicles  WT/ACC/TLS/17  
Decree -Law No. 38/2011, 5th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/5  
Government Resolution No. 9/2012, Settlement Agreement Betw een the State and 
Timor Telecom  WT/ACC/TLS/7  
Decree -Law No. 18/2011, Decentralized Development Programmes I and II  WT/ACC/TLS/5  
Decree -Law No. 24/2011, Licensing of Economic Activities  WT/ACC/TLS/5  
Decree -Law No. 28/2011, Food Industry and Marketing Regulation  WT/ACC/TLS/5  
Decree -Law No. 35/2012, Business Verification and Registration Services (SERVE)  WT/ACC/TLS/9  
Decree -Law No. 26/2012, Basic Law of the Environment  WT/ACC/TLS/5  
Decree -Law No. 36/2012, Control of Imports and Exports of Su bstances that 
Deplete the Ozone Layer  WT/ACC/TLS/17  
Decree -Law No. 11/2013, Procurement Legal Regime for the Integrated District 
Development Plan (PDID)  WT/ACC/TLS/5  
Decree -Law No. 5/2015, Creation of Free Trade Zone and Industrial Customs Free 
Zone in the Oecusse -Ambeno Region (ZEESM)  WT/ACC/TLS/9  
Decree -Law No. 10/2014, Regulation on Slaughterhouse Licensing  WT/ACC/TLS/9  
Decree -Law No. 13/2014, Regulation on Hygien e Requirement for Selling of Meat 
and Meat Products  WT/ACC/TLS/9  
Law No. 3/2014, Creation of the Oe -cusse -Ambeno Special Administrative Region, 
and the Oe -cusse Ambeno and Atauro (RAEOA) Social Market Economic Special 
Zone (ZEESM)  WT/ACC/TLS/5  
Decree -Law No. 28/2014, Procurement Special Regime for Special Administrative 
Region of Oecusse -Ambeno (ZEESM)  WT/ACC/TLS/5  
Government Resolution No. 37/2014, Special Investment Agreement with 
Heineken  WT/ACC/TLS/7  
Decree -Law No. 28/2015, Regulation on Port Tari ff (1st Amendment to Decree -
Law No. 19/2003)  WT/ACC/TLS/7  
Decree -Law No. 1/2016, 1st Amendment to Decree -Law No. 20/2008 of 19 June 
2008 WT/ACC/TLS/5  
Government Resolution No. 6/2016, National Trade Facilitation Committee  WT/ACC/TLS/7  
Decree -Law No. 5/2016, National System of Protected Areas  WT/ACC/TLS/7  
Decree -Law No. 12/2016, Special Procurement Legal Regime for Autonomous 
Service for Drugs and Hea lth Equipment (SAMES)  WT/ACC/TLS/9  
Decree -Law No. 15/2016, Procurement Legal Regime for the Integrated District 
Development Plan (PDID)  WT/ACC/TLS/5  
Decree -Law No. 26/2016, Establishment of the Authority for Inspection and 
Supervision of Economic, Food a nd Sanitary Activities  WT/ACC/TLS/5  
Decree -Law No. 35/2016, Creation of Installation Commission of the Authority for 
Inspection, Supervision of Economic, Food and Sanitary Activity  WT/ACC/TLS/9  
Government Resolution No. 42/2016, Adoption of Arusha Declaration of the World 
Customs Organization  WT/ACC/TLS/7  
Government Resolution No. 41/2016, Approval of State Capital Contribution and 
Participation in TL Cement  WT/ACC/TLS/7  
Decree -Law No. 2/2017 , Urban Solid Waste Management System  WT/ACC/TLS/7  
Decree -Law No. 7/2017, Business Registration and Verification Service (SERVE)  WT/ACC/TLS/5  
Decree -Law No. 9/2017, Organic Structure of the Customs Authority  WT/ACC/TLS/5  
Government Resolution No. 12/20 17, National Policy for Nutrition and Food 
Security  WT/ACC/TLS/7  
Decree -Law No. 13/2017, Organic Structure of the Tax Authority  WT/ACC/TLS/5  
Decree -Law No. 14/2017, Customs Code of Timor -Leste  WT/ACC/TLS/5  
Law No. 14/2017, on Legal Regime for Forestry  WT/ACC/TLS/9  
Decree -Law No. 16/2017, Business Registration (or Commercial Registration) 
Procedures  WT/ACC/TLS/5  
Government Resolution No. 43/2017, Review of Technical Documentation in the 
Procurement Process  for Public Works  WT/ACC/TLS/9  
Decree -Law No. 23/2017, Credit Guarantee Scheme for Small and Medium -Size 
Enterprises  WT/ACC/TLS/5  
Government Resolution No. 24/2017, on Adoption of ASYCUDA World as Platform 
for the National Single Window  WT/ACC/TLS/7  
Decree-Law No. 28/2017, Vehicle Movement Control Regime at the Entry and Exit 
from the National Territory  WT/ACC/TLS/9  JOB/ACC/TLS/4  
 
- 73 - 
 
  Legislation/Regulation  Legislation Notice  
Decree -Law No. 34/2017, Licensing of Economic Activities  WT/ACC/TLS/5  
Ministerial Circular No. 3/2017, Import of Narcotics or Psychotropic Substances  WT/ACC/TLS/17  
Ministerial Circular No. 11/2017, Natural Medicines  WT/ACC/TLS/17  
Decree -Law No. 10/2018, Legal Statute of Quality Institute of Timor -Leste  WT/ACC/TLS/7  
Ministerial Diploma No. 34/2018, Tables of Fees for SERVE  WT/ACC/TLS/17  
Law No. 3/2019, 1st Amendment to Law No.  3/2014, Creation of the Oe -cusse -
Ambeno Special Administrative Region, and the Oe -cusse Ambeno and Atauro 
(RAEOA) Social Market Economic Special Zone (ZEESM)  WT/ACC/TLS/7  
Law No. 5/2019, 1st Amendmen t to Decree -Law No. 8/2008, Taxes and Duties Act  WT/ACC/TLS/7  
Decree -Law No. 27/2019, 2nd Amendment to Decree -Law No. 20/2008 of 19 June 
2008 WT/ACC/TLS/7  
Decree -Law No. 6/2020, Legal Framework for the Protection and Conservation of  
Biodiversity   WT/ACC/TLS/18  
Decree -Law No. 30/2019, 6th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/7  
Decree -Law No. 7/2020, Import, Transport, Storage and Explosive Products for Civil 
Construction, Oil and Mineral Activities  WT/ACC/TLS/1 7 
Government Resolution No. 31/2020, Establishment of Inter -ministerial Commission 
for Tax Reform and Public Finance Management and the Inter -ministerial Sub -
committee for Reform of State Heritage Management  WT/ACC/TLS/15  
Decree -Law No. 5/2021, 7th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/19  
Draft Law on Pesticides  WT/ACC/TLS/15  
Draft Decree -Law on Quarantine (Animal Health)  WT/ACC/TLS/5  
WT/ACC/TLS/9  
Draft Decree -Law on Quarantine (Plant Health)  WT/ACC/TLS/5  
WT/ACC/TLS/9  
Draft Import Requirements for Animals and Animal Products, and Plants and Plant 
Products (Quarantine Requirements)  WT/ACC/TLS/15  
Draft Export Promotion Law  WT/ACC/TLS/15  
TRADE -RELATED INTELLECTUAL PROPERTY REGIME  
Indonesian Civil Code (Title XX Intellectual Property)  WT/ACC/TLS/5  
Parliament Resolution No. 16/2017, Ratification of the International Convention 
Establishing the WIPO  WT/ACC/TLS/5  
POLICIES AFFECTING TRADE IN SERVICES  
UNTAET Regulation No. 8/2000, Bank Licensing and Superv ision WT/ACC/TLS/5  
Decree -Law No. 2/2003, Basic Law on the Road Transport System  WT/ACC/TLS/5  
Decree -Law No. 11/2003, Regulation of the Telecommunication Sector  WT/ACC/TLS/5  
Decree -Law No. 13/2003, Bases for the National Electricity System  WT/ACC/TLS/9  
Decree -Law No. 18/2003, Road Transport Contract  WT/ACC/TLS/5  
Decree -Law No. 4/2004, Water Supply for Public Consumption  WT/ACC/TLS/9  
Decree -Law No. 17/2004, Postal Services  WT/ACC/TLS/5  
Decree -Law No. 18/2004, Regulation on Private Health Services  WT/ACC/TLS/5  
Decree -Law No. 5/2006, Certification of Air Transport Operators  WT/ACC/TLS/5  
Law No. 6/2005, Regime for the Licensing, Oversight and Regulation of Insurance 
Companies and Insurance Intermediaries  WT/ACC/TLS/5  
Public Instruction No. 1/2007, Licensing of General Insurance Companies  WT/ACC/TLS/5  
Public Instruction No. 2/2007, Licensing of Insurance Intermediaries  WT/ACC/TLS/5  
Government Decree No. 9/2008, Regulation of Mobile Telecommunication Network 
Services  WT/ACC/TLS/7  
Decree -Law No. 6/2009, Regulation on Recreational and Social Gambling  WT/ACC/TLS/5  
Decree -Law No. 7/2009, Regulation on Restaurants and Similar Establishments  WT/ACC/TLS/5  
Ministerial Diploma No. 1/2009, Regulation on Lottery Franchise  WT/ACC/TLS/5  
Decree -Law No. 21/2009, Funeral Transport Service  WT/ACC/TLS/5  
Public Instruction No. 6/2010, Licensing and Supervision of Other Deposit Taking 
Institutions  WT/ACC/TLS/5  
Decree -Law No. 26/2010, Registration of Sole Entrepreneurs in the Construction 
Sector  WT/ACC/TLS/5  
Decree -Law No. 27/2010, Rules for the Certific ation and Registration of 
Construction Consultancy Companies  WT/ACC/TLS/5  
Decree -Law No. 5/2011, Environmental Licensing  WT/ACC/TLS/5  
Decree -Law No. 3/2011, Transformation of Micro -Finance Institute into Public 
Company (National Commercial Bank of Timor -Leste (BNCTL))  WT/ACC/TLS/5  
Decree -Law No. 51/2011, Legal Regime for Advertising Activities  WT/ACC/TLS/9  
Decree -Law No. 12/2012, Agency Agreement  WT/ACC/TLS/5  
Decree -Law No. 15/2012, Regulation on Telecommunication Sector  WT/ACC/TLS/5  
Public Instruction No. 1/2013, Licensing and Supervision of Money Transfer 
Operators  WT/ACC/TLS/5  JOB/ACC/TLS/4  
 
- 74 - 
 
  Legislation/Regulation  Legislation Notice  
Ministerial Diploma No. 2/2014, Regulation on Mines and Quarries Activities  WT/ACC/TLS/7  
Law No. 5/2014, Media Law  WT/ACC/TLS/9  
Decree -Law No. 32/2014, Legal Regi me for Private Security  WT/ACC/TLS/9  
Decree -Law No. 6/2016, Legal Regime for Licensing, Operation and Control of the 
Activity of Games and Entertainment, Gaming Machines and Traditional Games  WT/ACC/TLS/9  
Government Resolution No. 33/2015, Lease of Land for Hotel Construction (Pelican 
Paradise)  WT/ACC/TLS/7  
Decree -Law No. 33/2016, Regulation on Licensing of Electricity Service Provider 
and Tariffs  WT/ACC/TLS/7  
Decree -Law No. 19/2016, Legal Regime for the Licensing and Operation of Travel 
and Tourism Agencies  WT/ACC/TLS/5  
Government Resolution No. 37/2017, Lease of Land for Hotel Construction (Pelican 
Paradise)  WT/ACC/TLS/7  
Decree -Law No. 29/2017, National Information and Communication Technologies 
Agency  WT/ACC/TLS/9  
Decree -Law No. 29/2020,  Creation of Timor -Leste Electricity (EDTL, E.P.)  WT/ACC/TLS/15  
Decree Law No. 40/2020, Creation of the National Authority for the Energy Sector 
(ANE, I.P.)  WT/ACC/TLS/15  
TRADE AGREEMENTS  
Government Resolution No. 2/2004, Investment Protection Agreement Between 
Timor -Leste and Portugal  WT/ACC/TLS/7  
Government Resolution No. 8/2011, Investment Protection Agreement Between 
Timor -Leste and Germany  WT/ACC/TLS/7  
Government Resolution No. 18/2 014, Economic Cooperation Between Timor -Leste 
and China  WT/ACC/TLS/7  
Government Resolution No. 45/2016, Approval of Trade Cooperation Between 
Timor -Leste and Kuwait  WT/ACC/TLS/7  
Parliament Resolution No. 13/2016, on Ratification of International Conventi on on 
the Settlement of Investment Disputes Between States and Nationals of Other 
States  WT/ACC/TLS/7  
 
 
   
  JOB/ACC/TLS/4  
 
- 75 - ANNEX 2(A) 
Gross Domestic Product , 2013 -2019  
(In millions, US Dollars)  
  2013  2014  2015  2016  2017  2018  2019  
Agriculture, forestry and fishing  300.2  296.5  283.4  279.6  271.3  279.2  286.1  
Mining and quarrying  1.6 1.6 1.6 1.6 1.7 1.5 263.8  
Extraction of crude petroleum and natural gas  0.0 0.0 0.0 0.0 0.0 0.0 262.2  
Other mining and quarrying  1.6 1.6 1.6 1.6 1.7 1.5 1.6 
Manufacturing and other industry*  11.2 12.1 16.4 19.1 25.9 26.3 29.2 
Of which: manufacturing  10.3 11.3 15.5 18.1 24.8 25.5 28.3 
Construction  255.4  225.2  274.0  293.7  203.5  215.4  201.0  
Wholesale and retail trade, transportation and storage, accommodation and food services  276.1  283.9  290.9  309.8  288.5  260.7  296.9  
Information and communication  41.0 21.7 36.5 41.4 40.0 41.5 55.3 
Financial and insurance activities  11.4 12.5 11.9 14.5 23.6 21.6 25.3 
Real estate activities  155.1  177.7  180.7  187.0  195.7  189.6  192.7  
Professional, scientific, technical, administration and support services  42.2 49.8 50.2 48.6 51.3 41.2 41.7 
Public admin., defence, education, human health and social work activities  310.0  364.0  385.6  405.0  442.4  471.3  443.2  
Other service activities  63.0 59.6 57.6 64.4 63.2 50.6 54.3 
Equals: VALUE ADDED, GROSS, at factor cost  1467.1  1504.6  1588.8  1664.7  1607.1  1599.0  1889.6  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 262.2  
Non-oil sector  1467.1  1504.6  1588.8  1664.7  1607.1  1599.0  1627.3  
Plus: Taxes less Subsidies on products  35.2 35.6 9.6 7.5 4.1 -3.6 -5.8 
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 2.4 
Non-oil sector  35.2 35.6 9.6 7.5 4.1 -3.6 -8.2 
Equals: GROSS DOMESTIC PRODUCT (Production)  1502.3  1540.2  1598.4  1672.1  1611.3  1595.4  1883.7  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 264.6  
Non-oil sector  1502.3  1540.2  1598.4  1672.1  1611.3  1595.4  1619.1  
Statistical Discrepancy  -19.0 9.2 -4.0 -24.1 -30.8 -31.6 -27.2 
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Non-oil sector  -19.0 9.2 -4.0 -24.1 -30.8 -31.6 -27.2 
GDP 1483.3  1549.3  1594.4  1648.1  1580.4  1563.8  1856.6  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 264.6  
Non Oil Sector  1483.3  1549.3  1594.4  1648.1  1580.4  1563.8  1591.9  
* Electricity and gas ; plus water supply; sewerage, waste management and remediation activities  
Source:  National Account, General Directorate of Statistics, Ministry of Finance  
 
   
  JOB/ACC/TLS/4  
 
- 76 - ANNEX 2(B) 
Balance of Payments, 2013 -2019  
 In thousands, US Dollars  
  2013  2014  2015  2016  2017  2018  2019  
Current Account Exclude other primary income  658,458  723,125  781,145  768,356  705,226  701,274  623,306  
I. Current Account  2,391,665  1,093,840  203,619  544,484  283,529  191,193  132,949  
A. Goods and Services  1,050,674  1,196,707  1,217,997  1,114,985  958,108  937,898  923,029  
1. Goods, fob  619,722  602,962  635,394  546,462  614,819  588,568  566,498  
2. Services  430,952  593,745  582,603  568,523  343,288  349,330  356,530  
B. Primary Income  3,328,249  2,134,183  1,296,807  544,079  735,327  842,632  1,126,451  
1. Compensation of employees  3,946  1,316  927  477  1,821  2,685  2,144  
2. Investment income  274,180  315,901  311,116  319,730  311,809  329,866  372,340  
3. Other primary income (income from JPDA), 
credit  3,050,123  1,816,965  984,764  223,872  421,697  510,081  756,255  
C. Secondary Income  114,090  156,364  124,809  26,422  60,748  95,927  70,474  
II. Capital account, Exclude Reserves  20,130  13,745  29,006  47,400  34,030  51,554  25,825  
III. Financial account  2,564,102  1,378,097  32,214  485,480  498,426  249,367  20,982  
IV. Grand Total (I+II+III)  152,308  270,513  264,839  11,604  248,927  109,728  137,791  
V. Errors and omissions  44,245  105,764  45,064  145,194)  14,556  19,747  155,406  
VI. BOP Position (IV+V)  196,553  376,277  219,775  156,797  263,483  129,474  17,615  
VII. Change in Reserve Assets  196,553  376,277  219,775  156,797  263,483  129,474  17,615  
a) Reserve Assets Position  686,994  311,467  437,867  280,952  544,435  673,909  656,295  
b) Change in Reserve Assets+Net  Portfolio 
Investment Assets Transaction from Sovereign 
wealth Fund (Petroleum Fund)  2,586,911  1,384,373  68,985  860,858  76,905  66,118  -251,625  
c) Sovereign Wealth Fund (Petroleum Fund) 
Assets Position Value as of end -period  14,952,099  16,538,618  16,217,573  15,844,327  16,799,313  15,822,994  17,691,816  
VIII. Errors and omissions  6.8 16.7 6.7 24.8 2.25  3.10  25.1 
Source:  Central Bank of Timor -Leste.  
 JOB/ACC/TLS/4  
 
- 77 - 
 
   
ANNEX 2(C) 
Trade in Goods and Services , 2013 -2019  
In million s, US Dollars  
  2013  2014  2015  2016  2017  2018  2019  
Total exports of 
Goods and services  120.52  67.63  48.51  52.62  32.07  37.41  504.06  
Total Imports of 
Goods and services  879.52  981.43  906.92  980.89  895.42  920.59  1,130.01  
 Total Trade  1,000.05  1,049.06  955.43  1,033.50  927.49  958.00  1,634.08  
Source:  SNA, General Directorate of Statistics, Ministry of Finance . 
 
Exports and Imports of Goods and Services, 2013 -2019  
In millions, US Dollars  
  2013  2014  2015  2016  2017  2018  2019  
Exports                
 Goods  60.26  15.8  12.0  25.4  11.0  15.6  489.1  
 Services  60.26  51.8  36.5  27.2  21.0  21.8  14.9  
Imports                
 Goods  396.3  433.2  484.7  534.2  543.0  473.1  555.2  
 Services  483.2  548.3  422.2  446.7  352.4  447.5  574.8  
Source:  SNA, General Directorate of Statistics, Ministry of Finance.  
 
Composition of Exports and Imports of Goods and Services, 2013 -2019  
In millions, US Dollars  
  2013  2014  2015  2016  2017  2018  2019  
Export  
Goods  27.0 15.8 12.0 25.4 11.0 15.6 489.1  
01 Animal & Animal Products  0.1 0.0 0.0 0.0 0.0 0.0 0.0 
02 Crops & Vegetables  26.4 15.2 10.7 24.0 9.7 14.0 14.1 
03 Edible fats & oils  0.1 0.1 0.3 0.1 0.1 0.2 0.1 
04 Foodstuffs  0.0 0.0 0.0 0.0 0.0 0.5 0.3 
05 Mineral products (Petroleum Oil and Gases)  0.4 0.5 0.9 1.0 0.9 0.7 473.8  
06 Chemicals & Allied  0.0 0.0 0.0 0.0 0.0 0.1 0.0 
07 Plastics / Rubbers  0.0 0.0 0.0 0.0 0.0 0.0 0.1 
08 Wood & Wood Products  0.0 0.0 0.0 0.1 0.0 0.0 0.1 
09 Base metals  0.0 0.0 0.0 0.0 0.3 0.1 0.2 
10 Vehicles & transport eqpt.  0.0 0.0 0.0 0.0 0.0 0.0 0.2 
Services  60.3 51.8 36.5 27.2 21.0 21.8 14.9 
a. Transport  0.6 0.8 1.5 1.8 1.8 2.2 3.4 
b. Travel  36.7 25.2 28.1 20.7 15.4 14.1 8.6 
c. Insurance and pension services  1.0 0.5 0.0 0.0 0.1 0.6 0.5 
d. Telecommunications, computer and 
information services  18.2 24.4 5.1 2.3 1.9 1.2 0.9 
e. Government goods and services  3.7 0.9 1.8 2.4 1.9 3.6 1.5 
Import  
Goods  396.3  433.2  484.7  534.2  543.0  473.1  555.2  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 52.1 
Non-oil sector  396.3  433.2  484.7  534.2  543.0  473.1  503.1  
Merchandise imports, f.o.b.  394.7  431.2  482.8  531.6  540.0  470.1  500.9  
Merchandise imports, adjusted, c.i.f.  439.0  476.6  536.8  591.3  600.5  522.7  557.1  
Merchandise imports in trade statistics, c.i.f.  399.0  433.2  488.0  537.5  545.9  475.2  506.4  
01 Animal & Animal Products  12.2 15.8 16.7 21.8 36.9 33.8 31.0 
02 Crops & Vegetables  21.8 34.1 33.1 44.8 47.4 48.6 49.7 
03 Edible fats & oils  3.0 3.3 4.5 4.5 9.8 10.8 11.8 
04 Foodstuffs  43.8 43.0 50.1 69.9 66.7 63.1 60.7 
05 Mineral products   82.2 93.8 134.9  133.3  137.9  120.1  139.7  
06 Chemicals & Allied  10.3 14.0 11.1 16.1 17.2 19.0 19.7 
07 Plastics / Rubbers  5.2 7.4 10.6 12.3 11.7 10.9 11.3 JOB/ACC/TLS/4  
 
- 78 - 
 
    2013  2014  2015  2016  2017  2018  2019  
08 Raw Hides & Skins, Leather  0.1 0.2 0.3 0.4 0.4 0.5 1.7 
09 Wood & Wood Products  1.8 2.1 3.7 3.3 2.8 2.6 3.1 
10 Paper and paperboard  4.4 6.4 4.4 5.5 5.4 5.3 6.9 
11 Textiles  28.4 21.6 16.2 10.3 12.8 9.3 8.7 
12 Footwear / Headgear  2.1 2.0 3.6 4.2 4.1 4.3 7.4 
13 Stone / Glass  3.9 4.2 4.2 6.3 5.6 4.0 5.2 
14 Precious stones & metals  0.3 15.7 0.4 0.4 0.0 0.0 0.0 
15 Base metals  23.5 21.5 28.6 37.6 28.2 20.5 22.7 
16 Machinery / Electrical  78.7 57.7 77.3 79.2 71.4 48.6 49.9 
17 Vehicles & transport eqpt.  62.0 72.7 72.1 71.7 74.0 60.7 64.3 
18 Apparatus & instruments  3.0 3.0 3.0 4.6 3.7 3.7 3.3 
19 Arms and ammunition  0.9 0.7 0.5 0.4 0.0 0.2 0.2 
20 Miscellaneous  11.4 14.1 12.7 10.9 9.8 9.2 8.9 
Adjustment for unrecorded and underreported 
imports  39.9 43.3 48.8 53.8 54.6 47.5 50.6 
Rate of adjustment  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Services  483.2  548.3  422.2  446.7  352.4  447.5  574.8  
a. Maintenance and repair services n.i.e.  0.0 0.0 0.0 0.0 0.0 0.0 116.4  
b. Transport  41.7 43.5 57.4 63.8 61.1 51.2 62.8 
c. Travel  41.6 47.7 60.6 67.2 55.6 42.3 45.8 
d. Construction  73.4 201.6  90.2 92.4 25.1 190.4  177.7  
e. Insurance and pension services  11.6 11.8 13.9 15.4 15.6 13.6 14.8 
f. Financial services  -4.0 -10.3 -1.8 8.1 7.5 7.9 8.4 
g. Charges for the use of intellectual property 
n.i.e. 0.0 0.1 0.1 1.2 0.4 0.0 0.6 
h. Telecommunications, computer and 
information services  23.2 13.0 10.1 7.4 6.2 3.8 5.7 
i. Other business services  108.1  101.5  70.1 75.9 68.4 31.8 45.3 
j. Government goods and services n.i.e.  187.6  139.5  121.5  115.3  112.7  106.3  97.4 
Source:  National Account, General Directorate of Statistics, Ministry of Finance . 
 
   JOB/ACC/TLS/4  
 
- 79 - 
 
  ANNEX 3 
Doing Business Indicators  
For ease of Doing Business, Timor -Leste ranked 181st out of 190 countries covered by the World 
Bank's Doing Business indicators for 2020 :  
Indicator  Rank in 2020  
Starting a business  68 
Trading Across Borders  107 
Access to electricity  126 
Ease of paying taxes  136 
Registering property  187 
Resolving insolvency  168 
Contract enforcement  190 
 
Following developments have been registered with respect to specific Doing Business indicators:  
i. Enforcing Contracts : Aiming at improving this indicator, in 2019, the Government sent 
to the National Parliament and in 2021, the National Parliament approved a package of 
three legislative initiatives which have the potential for improving contract enforcement:  
a. Resolution authorizing the adoption by Timor -Leste of the 1958 New York 
Convention on the Recognition and Enforcement of Foreign Arbitral Awards 
(approved by Resolution No.  8/2021 of 17 March 2021);  
b. Law on National and International Arbitration (enacted by Law No. 6 /2021 o f 
31 March 2021 on the Legal Regime of Voluntary Arbitration and the  First 
Amendment do the Civil Procedure Code); and  
c. Law that simplifies the  procedures of civil and commercial cases to speed up their 
management (approved by Law No. 3/2021 of 2 Ma rch 2021 that authorizes 
the Government to change the Civil Procedure Code);  
ii. Getting Electricity : Real progress from 2015 to 2019 was made with regard to this 
indicator, as shown by World Bank documents. This indicator has the potential to further 
improve  as the institutional reform projects for the sector were approved. Among 
others, a new regulating body for the energy sector is currently being installed (please 
refer to Decree -Laws Nos. 29/2020 of 22 July 2020 and 40/2020 of  
25 September  2020);  
iii. Getting Credit : The Government, as sole shareholder to the National Commercial Bank 
of Timor -Leste (hereinafter referred to as BNCTL), has recently approved the state 
general budget for 2021 to further capitalize the bank with a total amount of 
US$ 40 million with  an aim to improve mechanisms and access to credit with lower 
interest rates. Such credit aims to improve access for the private sector, especially from 
micro, small and medium -sized enterprises.  
In addition, to facilitate the private sector 's access to credit, the BNCTL signed an  agreement with 
the Public Institute For Business Development Support (hereinafter referred to as IADE) to assist 
young entrepreneurs to quickly obtain credit to start their business.  
Law No. 7/2020 of 28 August 2020 on Preventing and Combatting Corruption, aligned with the UN 
Convention against Corruption (UNCAC), was approved by the Parliament, creating the expectation 
of a more effective fight against corruption.  
An integrated Project on Unique Identifier of Timorese c itizens and residents was launched 
by Government Resolution No. 9/2020 of 19 March 2020, aiming at bettering the overall provision 
of services and creating the basis for electronic government. This has the potential to improve 
transparency and reduce red t ape for businesses.  JOB/ACC/TLS/4  
 
- 80 - 
 
  ANNEX 4 
Legislative F ramework for Combatting Corruption  
Title VI of the Penal Code on the Crimes Practiced in the Performance of Public Functions, in Article 
292 on Passive Corruption for Illicit Action provided tha t an employee who, by himself, or through 
a personal intermediary, with his consent or ratification, requests or accepts, for himself or for a  third 
party, without being due, a patrimonial or non -patrimonial advantage, or his promise, to any person 
an act or omission contrary to the duties of the position, even if prior to that request or acceptance, 
is punishable with a prison sentence of 3 to 15 years. If an agent, before the practice of the fact, 
voluntarily repudiates the offer or promise that he accepted, or restores the advantage, or, in 
the case of a fungible thing, its value is exempt from penalty.  The penalty is especially mitigated if 
the agent concretely assists in the collection of the decisive evidence for the identification or 
the capture  of other responsible persons.  
Articles 5 and 19 of National Parliament Resolution No. 12/2019 of 13 March 2009 on the Code of 
Conduct of Members of the Government on Preventing and combating corruption  provide that 
Government members should make a commit ment to prevent and combat corruption, especially 
private corruption, extortion or bribery, and are prohibited from:  (a) offer, accept or facilitate 
the payment of a bribe;  (b) offer or authorize, directly or indirectly, an undue advantage for any 
person o r public agent that involves direct personal gain or that of intermediary third parties.  
Members of the Government must communicate to the Public Prosecutor the acts that may constitute 
attempts at corruption. They may not receive any offers in cash and ma y only receive offers of 
symbolic value that do not exceed the value of US$ 250. The value of the offers is recorded in 
a specific heading of all offers from the same person, whether natural or legal, during the course of 
a calendar year. At the same time,  members of the Government may receive offers made between 
States, the refusal of which can be interpreted as a breach of interinstitutional respect.  
On the institutional level, several independent supervisory bodies have been created, particularly:  
The Anti-Corruption Commission (hereinafter referred to as CAC) has played an active role in 
monitoring and holding public officials accountable and obtaining important results in terms of 
investigations. In addition to CAC, there is the Ombudsman for Human Ri ghts and Justice (PDHJ), 
with a mandate in the areas of human rights and good governance. Its functions include receiving 
and investigating complaints from the citizens and the public against the public administration. 
The PDHJ is also required to refer co mplaints that potentially involve criminal charges to the CAC or 
to the Office of the General Prosecutor. The PDHJ and the CAC also play a broader role, which 
includes raising awareness on corruption issues and providing recommendations to the Government 
on good governance practices.  
There is also a General Inspection of State (IGE as the control and inspection body of the Public 
Administration, whose mission is to control the financial management and resource use in the Public 
Administration services.  
An independent Chamber of Accounts of the Administrative, Fiscal and Accounting High Court was 
established in 2012 with a mandate to monitor the lawfulness of public expenditure and to audit 
state accounts.  
The Prosecutor General/Public Prosecutor's office is  mandated to investigate and prosecute  criminal 
offences, including corruption -related crimes, assisted by the body of criminal police, working in 
the field of criminal investigation (such as the Criminal Investigation Police Unit and the Scientific, 
Inves tigation and Criminal Police Unit (PCIC)).  
Thus, Timor -Leste has built a system to prevent and combat corruption efficiently, at all levels. A t 
the same time,  civil societ y contributes and exercise s a sharpen ed scrutiny over eventual corruption 
cases in general . 
  JOB/ACC/TLS/4  
 
- 81 - 
 
  ANNEX 5  
Summary of FDI Regulations in Timor -Leste  
Laws and 
Regulations  Sector 
Restrictions  Restriction on Land 
Ownership  Performance 
Requirements  Investment Incentives  
Private 
Investment 
Law (PIL) No. 
15/2017  
 
Government 
Decree No. 
2/2018, 
Regulation 
and 
procedure for 
private 
investment  
 
Other 
relevant laws 
– e.g. 
Company 
Act, Mining 
Code, etc . Restricted 
sector s: 
criminal 
activities; 
activities 
related to 
environmental 
protection 
areas; 
activities 
related to 
offensive of 
traditional 
customs; arms 
and 
ammunition 
distribution; 
postal & 
courier 
services; 
funeral service 
activities  
 
Other 
sectors :  
 
refer to 
Negative List  State or private 
land: 
 
Lease right between 5 
and 50 years. 
Renewable up to 
maximum 150 years 
(Government Decree 
Law No.19/2004 
"Legal Regime for 
Leasing of State 
Properties and 
Assets ") 
 
State or private 
land: 
 
Lease up to maximum 
of 50 years, 
renewable for period 
of 25 up to 10 0 years 
(PIL, Article 25 ) – 
applicable to private 
investments issued 
with Declaration of 
Benefit (DoB) or 
Special Investment 
Agreement (SIA)  Job creation to 
local; knowledge 
transfer (training) 
to local; technology 
transfer ; 
  
Local content 
requirement s (only 
for mining 
activities) ; 
 
No export 
performance 
requirement s. Productive sectors :  
 
agriculture, fisheries, 
tourism, processing 
industry  
 
Declarations of Benefits 
(DoB) and Special 
Investment Agreement 
(SIA)  
 
Tax and non -tax 
incentives : 
 
Minimum values for 
investment or 
reinvestment:  
- US $50,000 for a 
national investor  
- US $500,000 for a 
foreign investor  
- US $250,000 for a joint 
venture  
 
Support to investors : 
 
- Granting 
authorizations, visas, 
permits & registrations  
- Facilitation serv ices 
 
 
  JOB/ACC/TLS/4  
 
- 82 - 
 
  ANNEX  6 
Continuing E ffect of Laws that had been in f orce before Independence  
Article  165 of t he Constitution of Timor -Leste (in force since 20 May 2002) provides that laws and 
regulations  which  had been in force in Timor -Leste before its independence from Indonesia shall 
continue to be applicable to all matters except to the extent that they are i nconsistent with 
the Constitution or the principles contained therein.  
Article  1 of Law No. 2/2002 "On Interpretation of Applicable Law" of 19 May 2002  provides that 
legislation applicable in Timor -Leste on 19 May 2002 shall remain in force mutatis mutandi s for 
everything that is not contrary to the Constitution and principles enshrined therein.  
It is possible that laws (Regulations, Directives, Executive Orders, and Notifications) enacted by 
the United Nations Transitional Administration in East Timor (UNTAET) between  October 1999 and 
May 2002 may still be in force. In most cases, UNTAET Regulations have been repealed by 
subsequent  Parliamentary Laws or Decree -Laws. Where a UNTAET Regulation has not been expressly 
repealed, but it is inconsistent with a  subsequent Parliamentary Law or Decree -Law, 
the Parliamentary Law or Decree -Law prevails over the UNTAET Regulation. This rule would also 
apply to UNTAET legislation that contravenes the Constitution.  
The first UNTAET Regulation, Regulation No. 1999/1 of 27 November 1999 on the Authority  of 
the Transitional  Administration in East Timor provides in Article 3.1 that, until replaced by UNTAET 
regulations or subsequent legislation enacted by democratically established institutions of East 
Timor, the laws appli cable in Timor -Leste prior to 25 October 1999 shall apply as long as they do 
not conflict with the rules set forth in Article 2 nor with the fulfillment of the mandate conferred to 
UNTAET under Resolution No. 1272 (1999) of the Security Council of the UN o r with this or other 
regulations and directives enacted by the Transitional Administrator.  
This means that it is possible that an Indonesian Law in force in Timor -Leste on 25 October 1999 
still applies, if it has not been replaced by an UNTAET Regulation b etween 25 October 1999 and 
19 May 2002, or by Timor -Leste 's legal statutes. Where an Indonesian Law has not been repealed 
but it is inconsistent with a subsequent Parliamentary Law or Decree -Law, then the Parliamentary 
Law or Decree -Law prevails to the ext ent of any inconsistency with an Indonesian Law.  
The continuing application of Indonesian or UNTAET laws was confirmed by Law No. 10/2003 of 20 
November 2003 "On the Interpretation of Article 1 of Law No. 2/2002 of 7 August 2002, and Sources 
of Law",  which  provides in Article 2 that: (I) Legislation is the only immediate source of law in 
Timor -Leste; (ii) the Laws are generic provisions enacted by the competent organs of the State;  
and, (iii) the sources of law in Timor -Leste are: (a) the Constitution; (b) Laws emanating from 
the National Parliament and from the Government; and , (c) subsidiarity, regulations and other legal 
instruments from UNTAET as long as these are not repealed, as well as Indonesian legislation under 
the terms of Article 1 of the present  law. 
With the approval  of the new Civil Code of Timor -Leste (Law No.10/2011 of 14 September 2011 , 
which replaced the prior Indonesian Civil Code that had been widely applied), it is not common to 
find Indonesian legislation applied (except in the case of petroleum tax matters).  
 
  JOB/ACC/TLS/4  
 
- 83 - 
 
  ANNEX 7(A) 
Classification of Economic Activities  in Timor -Leste  – Low Risk  
Code (Timor -
Leste 
classification)  Activity  
C MANUFACTURING INDUSTRIES  
13  Manufacture of textiles  
131  1310  Preparation, spinning, weaving and finishing of textiles  
139  Manufacture of other textiles  
 1391 Manufacture of made -up textile articles, except apparel  
 1392 Manufacture of carpets and rugs  
 1393 Manufacture of rope and nets  
 1394 Wool processing for mattresses  
 1399 Manufacture of other textiles, not specified (n.s.)  
14  Clothing industry  
141  Manufacture of apparel, except fur articles  
 1411 Manufacture of apparel in series  
 1412 Tailor made clothing  
142  1420  Manufacture of fur articles  
143  1430  Manufacture of knitted articles  
16  Wood and cork industries and articles thereof, except furniture; Manufacture 
of basketwork and wickerwork  
161  1610  Sawmilling, plan ning and impregnation of wood  
162  Manufacture of articles of wood, cork, straw and plaiting materials, except furniture  
 1624 Manufacture of basketwork and wickerwork  
18  Printing and reproduction of recorded media  
181  Printing and service activities related to printing  
 1811 Printing of newspapers  
 1812 Other printing  
 1813 Service activities related to printing  
182  1820  Reproduction of recorded media  
32  Other manufacturing industries  
321  Manufacture of jewellery , goldsmiths' jewellery , imitation jewellery  and similar 
articles; coinage  
 3212 Manufacture of imitation jewellery   
322  3220  Manufacture of musical instruments  
323  3230  Manufacture of sports goods  
329  3290  Manufacturing industries, n.s.  
33  Repair, maintenance of metal products, machinery and equipment  
331  Repair and maintenance of metal products, machinery and equipment  
 3311 Repair and maintenance of metal products (except machinery and equipment)  
 3312 Repair and maintenance of machinery and equipment  
 3313 Repair and maintenance of electronic and optical equipment  
 3314 Repair and maintenance of electrical equipment  
 3315 Repair and maintenance of transport equipment, except vehicles  
 3316 Repair and maintenance of other equipment  
332  3320  Installation of industrial machinery and equipment  
F  CONSTRUCTION  
41  Real estate development (development of building projects); building 
construction  
411  Real estate development (development of building projects)  
G  WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND 
MOTORCYCLES  
45  Trade, maintenance and repai r of motor vehicles and motorcycles  
451  4510  Motor Vehicle Trade  
453  4530  Motorcycle Parts & Accessories Trade  
454  Trade in motorcycles, parts and accessories  
 4541 Wholesale and retail trade in motorcycles, parts and accessories  
46  Wholesale trade (including agents) other than motor vehicles and 
motorcycles  
461  4610  Wholesale trade agents  
464  Wholesale of consumer goods, except food, beverages and tobacco  
 4641 Wholesale of textiles, clothing and footwear  
 4642 Wholesale of electrical household appliances and radio and television goods  
 4649 Wholesale of other consumer goods  JOB/ACC/TLS/4  
 
- 84 - 
 
  Code (Timor -
Leste 
classification)  Activity  
465  Wholesale trade of information and communication technology (ICT) equipment  
 4651 Wholesale of computers, computer peripheral equ ipment and software  
 4652 Wholesale of electronic and telecommunications equipment and their parts  
 4653 Wholesale of agricultural machinery and equipment  
 4659 Wholesale of other machinery and equipment  
466  Other specialized wholesale trade  
 4663 Wholesale of rough wood and derived products  
 4664 Wholesale of construction materials, hardware, tools and equipment and accessories 
for plumbing  
 4669 Wholesale of waste and scrap and other products n.s.  
469  4690  Non-specialized wholesale  
47  Retail sale, except motor vehicles and motorcycles  
471  Retail sale in non -specialized stores  
 4719 Retail sale in non -specialized stores without food, beverages or tobacco 
predominating  
474  Retail sale of information and communication technology (ICT) equipment, in 
specialized stores  
 4741 Retail sale of computers, peripheral units, software and telecommunications 
equipment, in specialized stores  
 4742 Retail sale of audiovisual equipment, in specialized stores  
 4762 Retail sale of discs, CDs, DVDs, cassettes and similar items, sports goods, games and 
toys, in specialized stores  
477  Retail sale of other goods, in specialized stores  
 4771 Retail sale of clothing,  footwear, leather and travel articles, in specialized stores  
 4773 Retail sale of other new goods, in specialized stores  
 4774 Retail sale of second -hand goods, in specialized stores  
478  Retail sale in stalls, fairs and mobile sales units  
 4781 Retail sale in stalls, fairs and mobile sales units, of agricultural food products  
 4782 Retail sale in stalls, fairs and mobile sales units, of processed food, beverages and 
tobacco  
 4783 Retail sale in stalls, fairs and mobile sales units, of textiles, clothing, footwear, 
luggage and the like  
 4784 Retail sale in stalls, fairs and mobile  sales units, of articles and equipment for 
domestic use  
 4786 Retail sale in stalls, fairs and mobile sales units, of stationery, newspapers and sports 
articles  
 4787 Retail sale in stalls, fairs and mobile sales units, of handicrafts, toys and paints   
 4789 Retail sale in stalls, fairs and mobile sales units, of other products  
479  Retail sale not in stores, fairs or markets  
 4791 Retail sale via mail order or via the Internet  
 4792 Retail sale by other means, not in stores, stalls, fairs or mobile sales units  
H  TRANSPORTATION AND STORAGE  
52  Warehousing and auxiliary transport activities (including handling)  
521  5210  Storage  
53  Postal and courier activities  
531  5310  Postal activities subject to universal service obligations  
532  5320  Other postal and courier activities  
J  INFORMATION AND COMMUNICATION ACTIVITIES  
58  Editing activities  
581  Publishing of books, newspapers and other publications  
 5811 Book publishing  
 5812 Editing lists for consultation  
 5813 Publishing of newspapers, magazines and other periodicals  
 5819 Other editing activities  
582  5820  Software publishing  
59  Cinematographic, video, television program production, sound recording and 
music publishing activities  
591  Cinematographic, video and television program activities  
 5911 Motion picture, video and television production activities and post -production 
techniques for films, videos and television programs  
 5912 Distribution of films, videos and television programs  
 5913 Film and video projection  
592  5920  Sound recording and music publishing activities  
62  Computer consulting and programming and related activities  JOB/ACC/TLS/4  
 
- 85 - 
 
  Code (Timor -
Leste 
classification)  Activity  
620  Computer consulting and programming and related activities  
 6201 Computer programming activities  
 6202 Computer consultancy and management activities and use of computer equipment  
 6209 Other activities related to information technology and computing  
63  Information services activities  
631  Data processing activities, domiciliation of information and related activities; web 
portals  
 6311 Data processing activities, domiciliation of information and related activities  
 6312 Web Portals  
639  Other information service activities  
 6391 Activities of news agencies  
 6392 Other information service activities, n.s.  
L  REAL ESTATE ACTIVITIES  
68  Real estate activities  
681  6810  Buying and selling of real estate  
682  6820  Property Leasing  
M  CONSULTING, SCIENTIFIC, TECHNICAL AND SIMILAR ACTIVITIES  
69  Legal and accounting activities  
691  6910  Legal activities  
692  6920  Accounting and auditing activities; tax consultancy  
70  Activities of social headquarters and management consultancy  
701  7010  Activities of social headquarters  
702  7020  Business and management consultancy activities  
74  Other consulting, scientific, technical and similar activities  
741  7410  Design Activities  
742  7420  Photographic activities  
743  7430  Translation and interpretation activities  
749  7490  Other consulting, scientific, technical and similar activities, n.s.  
N  ADMINISTRATIVE AND SUPPORT SERVICES ACTIVITIES  
77  Rental activities  
771  7710  Vehicle rental  
772  7720  Rental of personal and household goods  
773  Rental of other machinery and equipment  
 7731 Rental of means of transport by sea and river  
 7732 Rental of machinery and equipment for building and civil engineering  
 7733 Rental of office machinery and equipment (includes computers)  
 7734 Rental of other machinery and equipment, n.s.  
774  7740  Lease of intellectual property and similar products, except copyrights  
78  Employment activities  
781  7810  Activities of recruitment and placement companies  
782  7820  Temporary employment a gency activities  
783  7830  Other human resources provision  
79  Travel agencies, tour operators, other booking services and related activities  
799  7990  Other booking services and related activities  
81  Activities related to buildings, planting and maintenance of gardens  
811  8110  Combined support activities for buildings  
812  8120  Cleaning activities  
813  8130  Planting and garden maintenance activities  
82  Business administrative and support service activities  
821  8210  Administrative and support service activities  
822  8220  Call Center activities  
823  8230  Organization of fairs, congresses and other similar events  
829  Business support service activities, n.s.  
 8291 Packing activities  
 8299 Other business support service activities, n.s.  
R  ARTISTIC, PERFORMING, SPORTS AND RECREATIONAL ACTIVITIES  
90  900  Theater, music, dance and other artistic and literary activities  
 9001 Theater, music, dance and other performing arts activities  
 9002 Artistic and literary creation  
91  910  Activities of libraries, archives, museums and other cultural activities  
 9101 Activities of libraries and archives  
 9102 Activities of museums and historical sites and monuments  
 9103 Activities of zoos, bot anists and aquariums and parks and nature reserves  JOB/ACC/TLS/4  
 
- 86 - 
 
  Code (Timor -
Leste 
classification)  Activity  
93  Sports, entertainment and recreational activities  
931  Sports activities  
 9311 Activities of sports clubs  
 9319 Other sports activities  
932  9320  Fun and recreational activities  
S  OTHER SERVICE ACTIVITIES  
94  Activities of associative organizations  
941  Activities of economic, employers and professional organizations  
 9411 Activities of economic and employers' organizations  
 9412 Activities of professional organizations  
942  9420  Activities of trade unions  
949  Other activities of associative organizations  
 9491 Activities of religious organizations  
 9493 Activities of youth and student associations  
 9499 Other activities of associative organizations, n.s.  
95  Repair of computers and personal and household goods  
951  Repair of computers and communication equipment  
 9511 Repair of computers and peripheral equipment  
 9512 Repair of communications equipment  
952  Repair of personal and household goods  
 9521 Repair of televisions and other similar consumer goods  
 9522 Repair of household and other household and garden equipment  
 9523 Repair of furniture and the like for domestic use  
 9529 Repair of watches, jewelry and other personal and household goods  
96  960  Other personal service activities  
 9601 Washing and dry cleaning of textiles and fur  
 9602 Hairdressing and other bea uty treatment activities  
 9603 Funeral and related activities  
 9609 Other personal service activities, n.s.  
T  ACTIVITIES OF HOUSEHOLDS EMPLOYING DOMESTIC STAFF AND FAMILY 
PRODUCTION ACTIVITIES FOR OWN USE  
97 - 970 9700  Activities of households employing domestic staff  
98  Activities of production of goods and services by households for own use  
981  9810  Activities of production of goods by households for own use  
982  9820  Activities of production of services by households for own use  
U  ACTIVITIES OF INTERNATIONAL ORGANIZATIONS AND OTHER EXTRA -
TERRITORIAL INSTITUTIONS  
99 - 990 9900  Activities of international organizations and other extra -territorial 
institutions  
Source:  Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities".  
  JOB/ACC/TLS/4  
 
- 87 - 
 
  ANNEX 7(B) 
Classification of Economic Activities – Medium Risk  
Code (Timor -Leste 
classification)  Activity  
A AGRICULTURE, LIVESTOCK PRODUCTION, HUNTING, FOREST, FISHING 
AND AQUACULTURE  
01  Agricultural, livestock production, hunting and related services 
activities  
011  Temporary crops  
 0111 Cereals (except rice), dried leguminous plants and oil seeds  
 0112 Rice culture  
 0113 Culture of vegetables, roots and tubers  
 0119 Other temporary crops  
012  Permanent crops  
 0121 Culture of tropical and subtropical fruits  
 0122 Citrus Culture  
 0123 Culture of oleaginous fruits  
 0124 Coffee culture  
 0129 Other permanent crops  
013  0130  Culture of vegetative propagating material  
014  Livestock production  
 0141 Breeding cattle and buffaloes  
 0142 Breeding of equines, asinines and mules  
 0143 Breeding of sheep and goat  
 0144 Pig breeding  
 0145 Poultry farming  
 0149 Other livestock production  
015  0150  Combined agriculture and livestock production  
016  0160  Services activities related to agriculture and livestock production  
017  0170  Hunting and related services  
02  Forestry and forest exploration  
021  Forestry and other forestry activities  
 0211 Planted forests  
 0212 Natural forests  
022  0220  Forest exploration  
023  0230  Harvesting of forest products other than wood  
024  0240  Services activities related to forestry and forest exploration  
03  Fishing and aquaculture  
031  Fishing  
 0311 Sea fishing  
 0312 Inland fishing  
032  0320  Aquaculture  
034  0340  Service activities related to fishing and aquaculture  
C  MANUFACTURING INDUSTRIES  
10  Food industry  
103  1030  Processing and preserving of fruit and vegetables  
104  1040  Production of animal and vegetable oils and fats  
105  1050  Dairy industry  
106  Processing of cereals and legumes; Manufacture of starches, starch products 
and related products  
 1061 Processing of cereals and legumes  
 1062 Manufacture of starches, starch products and related products  
107  Manufacture of bakery and other flour products  
 1071 Bakery  
 1072 Manufacture of pastry, biscuits, cookies and toasts  
1  1073 Manufacture of cocoa, chocolate and sugar confectionery  
 1074 Coffee industry  
 1079 Manufacture of other food products, n.s.  
108  1080  Manufacture of animal feed  
11  Beverage industry  
110  Beverage industry  
 1101 Manufacture of distilled alcoholic beverages  
 1102 Wine industry (includes palm wine)  
 1103 Brewing and malting  JOB/ACC/TLS/4  
 
- 88 - 
 
  Code (Timor -Leste 
classification)  Activity  
 1104 Manufacture of soft drinks; production of natural mineral waters and other 
bottled waters  
12  Tobacco industry  
120  1200  Tobacco industry  
15  Industry of leather and leather products  
151  1510  Tanning and finishing of non -fur and fur; manufacture of travel goods and 
personal use products, of fine leather goods, saddlery and harness  
152  1520  Footwear industry  
16  Wood and cork industries and articles thereof, except furniture; 
Manufacture of basketwork and wickerwork  
162  Manufacture of articles of wood, cork, wickerwork and basketwork, except 
furniture  
 1621 Manufacture of veneer and wood -based panels  
 1622 Manufacture of other carpentry work for construction  
 1623 Manufacture of wooden containers  
 1629 Manufacture of other products of wood and cork  
17  Manufacture of pulp, paper, paperboard and other paper products  
171  Manufacture of pulp, paper and paperboard (except corrugated board)  
172  Manufacture of paper and corrugated paperboard, paper and paperboard 
products  
22  Manufacture of rubber and plastic products  
221  2210  Manufacture of rubber articles  
222  2220  Manufacture of articles of plastics  
23  Manufacture of other non -metallic mineral products  
231  2310  Manufacture of glass and glass products  
232  Manufacture of refractory ceramic products  
233  Manufacture of ceramic products for construction  
234  Manufacture of other non -refractory porcelain and ceramic products  
237  Sawing, cutting and finishing of ornamental stones and other building stones  
239  Manufacture of non -metallic mineral products, n.s.  
 2391 Manufacture of ceramic products for dom estic and ornamental purposes and 
other products, except for building  
 2392 Manufacture of ceramic products for construction  
 2393 Manufacture of concrete products for construction  
 2394 Manufacture of ready concrete  
 2395 Sawing, cutting and finishing of building stones  
 2399 Manufacture of other non -metallic mineral products, n.s.  
24  Basic metallurgical industries  
241  2410  Steel industry and the manufacture of ferroalloys  
242  2420  Manufacture of tubes, pipes, hollow profiles and associated steel accessories  
25  Manufacture of metal products, except machinery and equipment  
251  Manufacture of reservoirs, containers, b oilers and metal radiators, for central 
heating  
 2511 Manufacture of door structures, windows and similar metal elements  
 2512 Manufacture of reservoirs, containers, boilers and steam generators  
259  Manufacture of other metal products, metal treatment and coating and general 
mechanical activities  
 2591 Manufacture of forged, stamped and laminated products  
 2592 Treatment and coating of metals and general mechanic activities  
 2593 Manufacture of cutlery, hand tools and hardware  
 2599 Manufacture of other metal products, n.s.  
26  Manufacture of computer equipment, communication equipment and 
electronic and op tical products  
261  2610  Manufacture of components and plates, electronic  
262  2620  Manufacture of computers and peripheral equipment  
263  2630  Manufacture of communication equipment and devices  
264  2640  Manufacture of radio and television receivers and similar consumer goods  
265  2650  Manufacture of instruments and appliances for measuring, checking and 
navigating; watches and watchmaking equipment  
27  Manufacture of electrical equipment  
271  2710  Manufacture of electric motors, generators and transformers and manufacture 
of distribution and control equipment for electrical installations, accumulators, 
batteries and insulated cables and their accessories  
272  2720  Manufacture of electric la mps and other lighting equipment  
273  2730  Manufacture of household appliances and other household appliances  JOB/ACC/TLS/4  
 
- 89 - 
 
  Code (Timor -Leste 
classification)  Activity  
279  Manufacture of other electrical equipment  
28  Manufacture of machinery and equipment, n.s.  
281  2810  Manufacture of machinery and equipment for general use  
282  2820  Manufacture of other machinery and equipment for specific use  
29  Manufacture of motor vehicles, trailers, semi -trailers and components 
for motor vehicles  
291  2910  Manufacture of motor vehicles  
292  2920  Manufacture of coachworks, trailers and semi -trailers  
293  2930  Manufacture of parts and accessories for motor vehicles  
30  Manufacture of other transport equipment  
301  3010  Shipbuilding  
302  3020  Manufacture of rolling stock for railways  
303  3030  Manufacture of aircraft, spacecraft and related equipment  
304  3040  Manufacture of military combat vehicles  
309  Manufacture of other transport equipment, n.s.  
31  Manufacture of furniture and mattresses  
310  Manufacture of furniture and mattresses  
 3101 Manufacture of wooden furniture  
 3102 Manufacture of bamboo furniture  
 3109 Manufacture of mattresses and other furniture  
32  Other manufacturing  
321  Manufacture of jewelry, goldsmiths' jewelry, imitation jewelry and similar 
articles; coinage  
 3211 Manufacture of jewelry, goldsmiths' jewelry and similar articles; coinage  
324  3240  Manufacture of games and toys  
325  3250  Manufacture of medical -surgical instruments and materials  
D  ELECTRICITY, GAS, STEAM, HOT AND COLD WATER AND COLD AIR  
35  Electricity, gas, steam, hot and cold water and cold air  
353  Production a nd distribution of steam, hot and cold water and cold air by 
pipeline; ice production  
 3531 Production and distribution of steam, hot and cold water and cold air by pipeline  
 3532 Ice production  
F  CONSTRUCTION  
43  Specialized construction activities  
433  4330  Finishing activities in buildings  
439  Other specialized construction activities  
 4391 Rental of construction and demolition equipment with operator  
 4399 Other specialized construction activities, n.s.  
G  WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND 
MOTORCYCLES  
45  Trade, maintenance and repair of motor vehicles and motorcycles  
452  4520  Maintenance and repair of motor vehicles  
454  Trade, maintenance and repair of motorcycles, their parts and accessories  
 4542 Maintenance and repair of motorcycles, their parts and accessories  
46  Wholesale trade (including agents) other than motor vehicles and 
motorcycles  
462  4620  Wholesale of agricultural raw materials and live animals  
463  4630  Wholesale of food, beverages and tobacco  
47  Retail trade, except of motor vehicles and motorcycles  
471  Retail sale in non -specialized stores  
 4711 Retail sale in non -specialized stores with food, beverages or tobacco 
predominating  
472  Retail sale of food, beverages and tobacco  
 4721 Retail sale of fruit and vegetables in specialized stores  
 4722 Retail sale of bread, bakery and confectionery products in specialized stores  
 4729 Retail sale of other food, beverages and tobacco in s pecialized stores  
477  Retail sale of other goods in specialized stores  
 4772 Retail sale of pharmaceutical, medical, cosmetic and toilet articles in specialized 
stores  
478  Retail sale in stalls, fairs and mobile sales units  
 4785 Retail sale in stalls, fairs and mobile sales units, of fuels and lubricants  
H  TRANSPORTATION A ND STORAGE  
52  Warehousing and activities auxiliary to transport  
522  Activities auxiliary to transport  
 5221 Activities auxiliary to land transport  JOB/ACC/TLS/4  
 
- 90 - 
 
  Code (Timor -Leste 
classification)  Activity  
 5222 Activities auxiliary to water transport  
 5223 Activities auxiliary to air transport  
 5224 Load Handling  
 5225 Activities of freight forwarders and customs agents of maritime transport  
 5226 Activities of freight forwarders and customs agents of air transport  
 5229 Other transport support activ ities  
I  ACCOMMODATION, RESTAURANT SERVICES AND SIMILAR  
56  Restaurant services and similar  
562  Catering for events and other catering services  
 5621 Event catering  
 5629 Other catering services  
J  INFORMATION AND COMMUNICATION ACTIVITIES  
60  Radio and television activities  
601  6010  Radio activities  
602  6020  Television activities  
61  Telecommunications  
611  6110  Wired telecommunications activities  
612  6120  Wireless telecommunications activities  
613  6130  Satellite telecommunication activities  
619  6190  Other telecommunications activities  
M  ACTIVITIES OF CONSULTING, SCIENTIFIC,  
TECHNIQUES AND SIMILAR  
71  Architectural, engineering and related technical activities;  
Testing and technical analysis activities  
711  7110  Architectural, engineering and related technical activities  
712  7120  Testing and technical analysis activities  
72  Scientific and development research activities  
721  Research and development of the physical and natural sciences  
 7211 Research and development of the natural sciences  
 7212 Research and development of the physical sciences and engineering  
722  Research and development of social and human sciences  
 7221 Research and development of social sciences  
 7222 Research and development of the humanities  
73  Advertising, market research and opinion polls  
731  Advertising  
732  Market research and opinion polls  
75  Veterinary activities  
750  7500  Veterinary activities  
N  ADMINISTRATIVE ACTIVITIES AND SUPPORT SERVICES  
79  Travel agencies, tour operators, other booking services and related 
activities  
791  7910  Travel agencies and tour operators  
80  Research and safety activities  
801  8010  Private security activities  
802  8020  Activities related to security systems  
P  EDUCATION  
85  Education  
855  8550  Services and support to education activities  
Q  HUMAN HEALTH AND SOCIAL SUPPORT ACTIVITIES  
88  Social support without accommodation activities  
881  8810  Social support without accommodation activities for the elderly and disabled  
889  Other social support activities without accommodation  
 8891 Care activities for children, without accommodation  
 8899 Other social work activities without accommodation, n.s.  
R  ARTISTIC, PERFORMING, SPORTS AND RECREATIONAL ACTIVITIES  
92 - 920 9200  Lotteries and other sports betting  
S  OTHER SERVICE ACTIVITIES  
94  Activities of associative organizations  
949  Other activities of associative organizations  
 9492   Activities of political organizations  
Source:  Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities"  
  JOB/ACC/TLS/4  
 
- 91 - 
 
  ANNEX 7(C) 
Classification of Economic Activities – High Risk  
Code (Timor -Leste 
classification)  Activity  
B EXTRACTIVE INDUSTRIES  
05  Extraction of hard coal and lignite  
051  0510  Extraction of hard coal (includes anthracite)  
052  0520  Extraction of lignite  
06  Extraction of oil and natural gas  
061  0610  Extraction of crude oil  
062  0620  Extraction of natural gas  
07  Extraction and preparation of metallic minerals  
071  0710  Extraction and preparation of iron ores  
072  0720  Extraction and preparation of non -ferrous minerals  
08  Other extractive industries  
081  Extraction of stone, sand and clay  
 0811 Extraction of stone for construction  
 0812 Extraction of sand  
 0813 Extraction of crushed stone  
 0814 Extraction of clay and kaolin  
089  Extractive industries, n.s.  
 0891 Extraction of minerals for the chemical industry and the manufacture of 
fertilizers  
 0892 Extraction of salt  
 0893 Other extractive industries, n.s.  
09  Service activities related to extractive industries  
091  0910  Service activities related to oil and gas extraction, except prospecting  
099  0990  Other service activities related to extractive industries  
C  MANUFACTURING INDUSTRIES  
10  Food industry  
101  1010  Preparation and preservation of meat and meat products  
102  1020  Processing and preserving of fish, crustaceans and molluscs  
19  Manufacture of coke, refined petroleum products and agglomerates of 
fuels  
191  1910  Manufacture of coking products  
192  1920  Manufacture of refined petroleum products and agglomerates of fuels  
20  Manufacture of chemicals and synthetic or artificial fibers, except 
pharmaceuticals  
201  Manufacture of basic chemicals, fertilizers and nitrogen compounds, plastics 
and synthetic rubber, in primary forms  
202  Manufacture of pesticides and other agrochemical products  
 2021 Manufacture of soap and detergents, cleaning and polishing preparat ions, 
perfumes and hygiene products  
 2029 Manufacture of other chemical products, n.s.  
203  2030  Manufacture of paints, varnishes and similar products; mastics; printing inks  
204  Manufacture of soap and detergents, cleaning and polishing preparations, 
perfumes and toilet preparations  
205  Manufacture of other chemical products  
206  Manufacture of synthetic or artificial fibers  
21  Manufacture of basic pharmaceutical products and pharmaceutical 
preparations  
211  Manufacture of basic pharmaceutical products  
212  Manufacture of pharmaceutical preparations  
23  Manufacture of other non -metallic mineral products  
235  Manufacture of cement, lime and plaster  
236  Manufacture of concrete, plaster and cement products  
239  Manufacture of abrasive and other non -metallic mineral products  
25  Manufacture of metal products, except machinery and equipment  
252  2520  Manufacture of weapons and ammunition  
26  Manufacture of computer equipment, communication equipment and 
electronic and optical products  
266  Manufacture of radiation, electromedical and electrotherapeutic equipment  
D  ELECTRICITY, GAS, STEAM, HOT AND COLD WATER AND COLD AIR  
35  Electricity, gas, steam, hot and cold water and cold air  
351  3510  Electricity generation, transportation, distribution and trade  JOB/ACC/TLS/4  
 
- 92 - 
 
  Code (Timor -Leste 
classification)  Activity  
352  3520  Gas production; distribution of gaseous fuels through pipelines; gas trade  
E  DECONTAMINATION  
36 - 360 3600  Water collection, treatment and distribution  
37 - 370 3700  Collection, drainage and treatment of waste water  
38  Collection, treatment and disposal of waste; valuation of materials  
381  Collection of waste  
 3811 Collection of non -hazardous waste  
 3812 Collection of hazardous waste  
382  Treatment and disposal of waste  
 3821 Treatment and disposal of non -hazardous waste  
 3822 Treatment and disposal of hazardous waste  
383  3830  Valorization of materials  
39 - 390 3900 Decontamination and similar activities  
F  CONSTRUCTION  
41 - 410 4100  Building construction (residential and non -residential)  
42  Civil Engineering  
421  4210  Construction of roads, bridges, tunnels, runways of airports and railways  
422  4220  Construction of water transport networks, sewage, power distribution, 
teleco mmunications and other networks  
429  4290  Construction of other civil engineering works  
43  Specialized construction activities  
431  4310  Demolition and construction preparation  
432  Electrical installation, plumbing, air conditioning and other installations  
 4321 Electric installation  
 4322 Plumbing and air conditioning installation  
 4329 Other installations under construction  
G  WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND 
MOTORCYCLES  
46  Wholesale trade (including agents) other than motor vehicles and 
motorcycles  
466  Wholesale of other machinery, equipment and their parts  
 4661 Wholesale of solid, liquid, gaseous fuels and derived products  
 4662 Wholesale of metals and metal ores  
47  Retail trade, except of motor vehicles and motorcycles  
473  4730  Retail sale of fuels in specialized stores  
H  TRANSPORTATION AND STORAGE  
49  Land transport and transport by oil pipeline or gas pipeline  
491  4910  Transport by rail  
492  Other land transport (land passenger transport)  
 4921 Inland, urban and suburban passenger transport  
 4922 Other land passenger transport  
 4923 Road transport of merchandise  
493  4930  Transport by oil and gas pipelines  
50  Water transport  
501  Passenger sea transportation  
 5011 Passenger sea transportation  
 5012 Freight sea transport  
502  5020  Freight sea transport  
51  Air transport  
511  5110  Airline passenger transport  
512  5120  Air freight transport  
I  ACCOMMODATION, RESTAURANT SERVICES AND SIMILAR  
55  Accommodation  
551  Hotel establishments  
 5511 Hotel establishments  
 5512 Holiday Homes  
552  Camping and caravan parks  
 5521 Camping Parks  
 5522 Caravan Parks  
559  5590  Other places of accommodation  
56   
561   
 5611  
 5612  JOB/ACC/TLS/4  
 
- 93 - 
 
  Code (Timor -Leste 
classification)  Activity  
563  5630  Food & Beverage establishments  
K  FINANCIAL AND INSURANCE ACTIVITIES  
64  Financial services activities, except insurance and pension funds  
641  Monetary intermediation  
 6411 Central bank  
 6412 Public bank  
 6419 Other monetary intermediation  
642  6420  Activities of holding companies  
643  6430  Trusts, funds and similar financial entities  
649  Other financial service activities, except insurance and pension funds  
 6491 Leasing activities  
 6492 Pawnshops  
 6493 Credit unions  
 6494 Other credit activities  
 6495 Venture capital companies  
 6499 Other financial services activities, n.s. except insurance and pension funds  
66  Activities auxiliary to financial services and insurance  
661  Activities auxiliary to financial services, except insurance and pension funds  
 6611 Financial Markets Management  
 6612 Trading activities on behalf of third parties in transferable securities and other 
financial instruments  
 6619 Other activities auxiliary to financial services, except insurance and pension 
funds  
662  6620  Activities auxiliary to insurance and pension funds  
663  6630  Fund management activities  
O  PUBLIC ADMINISTRATION AND DEFENSE; MANDATORY SOCIAL 
SECURITY  
84  Public administration and defense; mandatory social security  
841  Public administration in general, economic and social  
 8411 Central Public Administration  
 8412 Regional and Local Administration  
 8413 Public Administration - health, education, cultural and social activities, except 
mandatory social security  
 8414 Public Administration - economic activities  
 8415 Activities in support of Public Administration as a whole  
842  Foreign affairs, defense, justice, security, public order and civil protection  
 8421 Foreign affairs  
 8422 Defense activities  
 8423 Justice activities  
 8424 Activities of Security, Public Order and Civil Protection  
843  8430  Mandatory social security activities  
P  EDUCATION  
85  Education  
851  Pre-school education and basic education 1st and 2nd cycles  
 8511 Pre-school education  
 8512 Basic education 1st and 2nd cycles  
852  Basic education 3rd cycle and secondary  
 8521 Basic education 3rd cycle  
 8522  General Secondary Education  
 8523 Technical and vocational education  
853  8530  Higher education  
854  Other educational activities  
 8541 Professional qualification  
 8549 Other educational activities, n.s.  
Q  HUMAN HEALTH ACTIVITIES AND SOCIAL SUPPORT  
86  Human health activities  
861  8610  Activities of inpatient health facilities  
862  8620  Activities of outpatient clinics, dental and dentistry  
869  Other human health activities  
 8691 Clinical analysis laboratories  
 8692 Collection centers and organ banks  
 8699 Other human health activities, n.s.  
87  Social support activities with accommodation  
871  8710  Activities of continuous integrated outpatient care facilities with accommodation  JOB/ACC/TLS/4  
 
- 94 - 
 
  Code (Timor -Leste 
classification)  Activity  
872  8720  Activities of establishments for persons with mental illness and drug abuse, 
with accommodation  
873  8730  Social support activities for the elderly and disabl ed, with accommodation  
879  8790  Other social support activities with accommodation  
Source: Decree -Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities".  
 
ANNEX 8 
National Committee on Trade Facilitation  
Government Resolution No. 6/2016 of 17 February 2016 on the "National Commi ttee for Trade 
Facilitation " lists in Article 3 of the Annex the Ministries and Agencies that make up the Committee, 
as follows:  
1. The Committee is composed of Executive Members, a Technical Working Group, a Secretariat 
and Observer Members.  
2. Executive Members:  
a) Coordinating Minister for  Economic Affairs (MCAE);  
b) Minister of Finance;  
c) Minister of Public Works, Transport and Communications;  
d) Minister of the Interior;  
e) Minist er of Tourism, Commerce and Industry ; 
f) Minister of Foreign Affairs and Cooperation;  
g) Minister of Agriculture and Fisheries.  
3. Members of the Technical Working Group:  
a) Director General of Customs;  
b) Coordinator of the Tax Reform Program;  
c) MCAE representative;  
d) Representative of the Ministry of Foreign Affairs and Cooperation for ASEAN affairs;  
e) Inspector General of Food Security;  
f) Director of the Timor -Leste Port Authority (APORTIL: Portuguese abbreviation);  
g) Director of the Civil Aviation Authority of Timor -Leste (AACTL: Portuguese abbreviation);  
h) Director -General for Immigration;  
i) National Director of Quarantine and Bio security. 
4. Non-Executive Members:  
a) President of the Chamber of Commerce and Industry, or his /her representative;  
b) President of the Association of Customs Brokers, or his representative.  
5. Observer Members :  
a) World Bank Group;  
b) the Asian Development Bank.  
 
6. The Director -General of Customs coordinates the Technical Working Group.  
Non-government representatives from the private sector also participate as non -executive members 
of the NTFC, as stated in Article 3.4 of the Annex of the Government Resolution No. 6/2016 . 
 
  JOB/ACC/TLS/4  
 
- 95 - 
 
  ANNEX 9  
Legislative Provisions related to Trade Facilitation  
the Customs Code frames and guides all subsidiary customs legislation that needs to be produced. 
The Code devotes Title XXI (Final Provisions) to the timetable, impleme nting regulations, 
implementing measures and complementary legislation. Examples of implementing regulations, 
implementing measures and complementary legislation inherent to the  Customs Code are as follows:  
Article 2 (Good Administrative Practices): "1. Wi thin one year from the date of entry into force of 
this Decree -Law, the Government approves, by Resolution of the Council of Ministers, a 'Guide to 
good administrative practices'. 2. The guide mentioned in the preceding paragraph is a standard 
reference do cument for conducts by the Public Administration."  
Article 15 (Publication):  
1. Without prejudice to the provisions of the following paragraph and upon proposal from the Director 
General [of Customs], the Minister approves the forms relating to customs dec larations, to 
the collection of customs tax revenue, to the application of the customs valuation system of goods 
or to the fulfilment of the duties established in this Code and other customs legislation in force.  
2. Forms for the customs control of persons , goods and means of transport shall be approved by 
the Director -General. 3. The updated list of all forms in force as well as the places where they can 
be purchased should, wherever possible, be published on the official website of the Ministry of 
Finance  or Customs.  
Section III (Representative Professional Public Association of Official Dispatchers), Article 43 
(Representativeness):  
1. The representative association of official brokers is the professional and representative association 
of the respective p rofessional card holders. 2. Membership in the association is mandatory as 
an indispensable condition for the official broker to be able to exercise his profession. 3. The Statutes 
of the association, as well as the respective amendments, are approved by a  proper diploma and 
published in the Official Gazette.  
Article 79 (Records and Payments):  
1. It is the responsibility of the Director General, by way of notice published in the Official Gazette, 
to approve: (a) documents required or established by customs legislation which may be transmitted 
through a stipulated electronic record; b) Payment required or established by Customs legislation 
which may be made through a stipulated electronic format; c) Customs information system for which 
such documents may be t ransmitted, or by means of which such payments may be effected. 
2. The electronic transmission of documents or the payments indicated in the previous paragraph 
are subject to authorization by the Director General according to article 80, or other conditions that 
may be stipulated. 3. The Director General may determine that, the documents or payments referred 
to in paragraph 1 of this article be transmitted in electronic form, without prejudice to any exceptions 
that may be stipulated.  
Article 179 ( Prohibited Import Goods): "Without prejudice to the provisions of special legislation and 
acts of international law subscribed by the Government of Timor -Leste, it is prohibited to import 
certain goods to be defined in a list approved by the Minister."  
Article 180 (Conditional Import Goods): "Without prejudice to the provisions of special legislation 
and acts of international law subscribed by the Government of Timor -Leste, only the goods in a list 
to be approved by the Minister may be subject to conditiona l imports, as long as they comply with 
the conditions established in the respective legal instrument."  
According to Chapter V (Customs Warehouse), Article 197 (Concept):  
1. Customs warehousing procedure shall permit the storage of imported goods in a custo ms 
warehouse, irrespective of the quantity, country or place of origin and destination, with suspension 
of duties and other import charges or subject to commercial policy measures." In such JOB/ACC/TLS/4  
 
- 96 - 
 
  circumstances, Article 204 (Authorized Operations) provides: "2. U sual handlings [of such goods] 
must be detailed in a list to be approved by the Minister, upon proposal by the Director General, and 
their realization must be authorized by the Director of Customs Control, who will determine 
the conditions under which they  can be carried out.  
Section V (Circulation of goods subject to Selective Consumption Tax – ISC - and control of exit from 
port facilities), Article 226 (Documents accompanying goods subject to ISC): "1. The circulation of 
goods subject to ISC that are in suspension regime is made with a document of accompaniment 
whose model will be approved by order of the Minister."  
Chapter IV (Guarantee for Customs Debt), Article 323 (Requirement of Guarantee):  
1. Always, when enforcing customs legislation, if the Custom s require a guarantee to ensure 
payment of a customs debt, such guarantee shall be provided by the debtor. 2. When the debtor is 
a service of Public Administration, the bank guarantee may be replaced by a commitment voucher 
of payment (CVP). 3. The list of  Public Administration services authorized to use the commitment 
voucher of payment shall be approved by the Minister.  
  JOB/ACC/TLS/4  
 
- 97 - 
 
  ANNEX 10 
National Single Window Project : Activities and Timeline  
Agency  Type Timeline  Agreement (MOU)  Status  
First Phase  
TradeInvest Timor -
Leste I.P.  Government  February 2021  Signed  Launched  
Ministry of Tourism, 
commerce and Industry 
(Commercial Vehicle 
Importation)  Government  March 2021  In progress  Developed  
Training & launching 
postponed due to lockdown  
Secretary State for 
Environment – 
Department of Ozone 
Depleting Substance  Government  June 2021  In progress  Developing,  
Presented initial Prototype 
to Ozone Depleting 
Substance Department  
APORTIL (Port 
Authority of Timor -
Leste I.P.)  Government  July 2021  In progress  Pending training of Staff  
Ministry of Health - The 
Autonomous Service for 
Medicines and Health 
Equipment (SAMES), 
and the General 
Directorate for Health 
Services  Government  July 2021  In progress  Developing  
National Directorate for 
Quarantine and 
Biosecurity, Ministry of 
Agriculture and 
Fisheries  Government  August 2021  In progress  Met Staff for requirement 
gathering, pending 
development  
National Directorate for 
Land Transport, 
Ministry Transport and 
Communic ation Government  September 2021  In progress  AW development completed  
Pending development of the 
data exchange between two 
systems  
Tax Authority / SERVE  
 Government  October 2021  In progress  Met with team, pending 
technical work with system 
consultants  
Ministry of Tourism, 
commerce and Industry 
(Certificate of Origin)  Government  November 2021  In progress  Met and initiated discussion 
with the team  
Immigration Services of 
Timor -Leste Government  February 2022  In progress  Pending meeting  
New Timor Port 
(Bollore)  Private  January 2022  In progress  2 meetings a month since 
Aug 2020  
Commercial Banks 
(BNU and BNCTL)  Private  February 2022  Signed  Pending  
Trade Community  
- Traders  
- Customs 
Brokers  
- Shipping 
Agents  
- Transporter  Private  February 2021   On-Going  
Part of the discussion, 
training for Trade Invest  
Interface with 
Indonesia  Government  2022 In progress  To initiate discussion in July 
2021 
Second phase  
Interface with a CPLP 
Country (Brazil)  Government  2022 Pending  Pending  
Interface with CPLP SW  Government  2022 Pending  Pending  
Gateway between CPLP 
and ASEAN Countries  Government  2023 Pending  Pending  
 
 JOB/ACC/TLS/4  
 
- 98 - 
 
  The Timor -Leste National Single Window project is divided into two phases.  
The first phase  involves nine  Government agencies, one private company (Bollore – New Timor Port), 
and Indonesia:  
i. Trade Invest Timor -Leste ; 
ii. Ministry of Tourism, Commerce and Industry ; 
iii. National Directorate for Land Transport ; 
iv. Ozone Depleting Substance Directorate under the Secretary State for Environment;  
v. Ministry of Health ; 
vi. Quarantine Authority, Ministry of Agriculture and Fisheries ; 
vii. Port Authority of Timor -Leste ; 
viii. New Timor Port (Bollore company) ; 
ix. Tax Authority, and the Public Institute on Registry Service and Business Verification 
(SERVE ); 
x. Immigration Services ; 
xi. Indonesia.  
In addition, this phase will include engagement with the private sector (traders, brokers, shippi ng 
agents and transporters) who are the intended users of the single window platform.  
This process includes: (i) capacity building for government staff; (ii) reviewing and optimizing 
internal processes of each institution; and (iii) providing electronic in frastructure to each government 
agency under the ASYCUDA World Platform.  
Accordingly, the Government, through the Customs Authority, has provided familiarization sessions 
to the nine government agencies and is reviewing each government agency internal process. 
In addition, during this phase, the Customs Authority is planning to engage with some private 
institutions, including commercial banks, with a hope to reach an agreement soon.  
Linkage between Timor -Leste's National Single Window and Indo nesia's Pilot data exchange system 
under the MoU on Cross Border Trade between Indonesia and Timor -Leste is in the Government's 
agenda. This will ultimately facilitate linkage with the ASEAN Single Window.  
The second phase will involve implementation of da ta exchange with CPLP countries, CPLP Single 
window and ASEAN Single Window. The plan is to link Timor -Leste's National Single Window and 
Brazil as a selected CPLP member state, and to further finalize the linkage between the ASEAN and 
CPLP regional Single  Window via the National TL -TSWS gateway.  
   
  JOB/ACC/TLS/4  
 
- 99 - ANNEX 11 
Categories of commitments under the WTO Trade Facilitation Agreement  
Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 1     Publication and Availability of Information  
Article 1.1  Publication  B 2023 2025 - 
Article 1.2  Information 
Available 
through Internet  C 2023 2025 Legal/Policy:  
• Undertake a study to take stock of all trade information available online; identify 
gaps and assess Timor -Leste's readiness to have a trade information portal/ 
website; cost and benefit analysis. Develop policy and legislate as necessary the 
mandate and process of publishing information; and having this information 
available in online procedures  
• Review of outdated Standard Operating Procedures  
 
Human Resources/Training:  
 
• Training of IT Staff to design, develop and maintain websites  
• Training of Customs officials on the implementation of Standard Operating 
Procedures  
• Relevant training of officials a nd private sector  
 
Information and Communication Technology:  
• Develop and maintain a Trade Information Portal system (TIP) Infrastructure  
• Appropriate equipment and software programs for border agencies 
Consultations/Public Awareness  
• Stakeholder consultations on the potential TIP  
Article 1.3  Enquiry Points  B 2022 2024 - 
Article 1.4  Notification  B 2022 2024 - 
Article 2     Opportunity to Comment, Information before Entry into Force and Consultations  
Article 2.1  Opportunity to 
Comment and 
Information 
Before Entry into 
Force  A - - - 
Article 2.2  Consultations  B 2022 2024 - 
Article 3     Advance Rulings  
    A - - -  
  JOB/ACC/TLS/4  
 
- 100 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 4     Procedures for Appeal or Review  
    C 2023 2026 Operation:  
• Financial (and technical support where relevant) assistance required for the initial 
set-up and operation of the Customs Appeal Authority for the first five years  
Human resources/Training:  
• Capacity building and training for Customs officials on the implementation and 
application of this provisi on 
Article 5     Other Measures to Enhance Impartiality, non - Discrimination and Transparency  
Article 5.1  Notification for 
Enhanced 
Controls or 
Inspections  B 2022 2024 - 
Article 5.2  Detention  B 2022 2024 - 
Article 5.3  Test Procedures  A - - - 
Article 6     Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation and Penalties  
Article 6.1  General 
Disciplines on 
Fees and 
Charges 
Imposed on or in 
Connection with 
Importation and 
Exportation  A - - - 
Article 6.2  Specific 
Disciplines on 
Fees and 
Charges for 
Customs 
Processing 
Imposed on or in 
Connection with 
Importation and 
Exportation  A - - - 
Article 6.3  Penalty 
Disciplines  C 2023 2026 Human resources/Training:  
• Capacity building and training for Customs officials on the implementation and 
application of this provision   
  JOB/ACC/TLS/4  
 
- 101 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 7     Release and Clearance of Goods  
Article 7.1  Pre-arrival 
Processing  C 2022 2025 Human Resources/Training:  
• Capacity building and training for Customs, Quarantine Biosecurity and Border 
agencies officials on the implementation and application of this provision  
 
Information and Communication Technology:  
• Enhance the technological capacity of Customs officials in implementing this 
provision  
Infrastructure:  
• Upgrade existing Customs and Border agencies systems and infrastructure to 
facilitate Pre -arrival processing  
• Upgrade and improve existing Quarantine Biosecurity infrastructure to facilitate 
pre-arrival processing  
Article 7.2  Electronic 
Payment  C 2022 2024 Legal/Policy:  
• Review existing systems and policies. And determine feasibility and resources 
required to set -up and operate an electronic payment system  
 
Human Resources/Training:  
• Capacity building and training for Customs, Quarantine Biosecurity and Border 
agencies officials on electronic payment  
 
Information and Communication Technology:  
• Enhance technological capacity of border agencies and government agencies 
necessary to implement an electronic payment system  
 
Infrastructure:  
•  Devel opment, set -up and installation of appropriate technology and equipment to 
put in place an electronic payment system  
Article 7.3  Separation of 
Release from 
Final 
Determination of 
Customs Duties, 
Taxes, Fees and 
Charges  B 2022 2025 -  
  JOB/ACC/TLS/4  
 
- 102 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 7.4  Risk 
Management  C 2023 2026 Legal  
• Review/develop legal basis to enhance coordination and collaboration between 
border agencies on risk identification and application of risk management  
 
Policy  
•  Develop a risk management policy with target percentages of low/high risk cargo  
• Develop a training plan for Customs, Quarantine Biosecurity and Border 
agencies officials on risk management, targeting the application of risk 
management  
 
Procedures  
• Review  and develop necessary procedures  
 
Human Resources/Training  
• Capacity building and training for Customs and Quarantine Biosecurity officials on 
risk management using transaction data from ASYCUDA system  
• Training and Development for border agencies staff on risk identification and 
profiling  
 
Information and Communication Technology  
•  Enhance technological capacity of Border agencies necessary to implement a 
proper risk management process/system  
 
Infrastructure  
• Provision of Non -Intrusive Inspection equipment  
•  Provision of appropriate technology and equipment to support the 
implementation of a proper risk management system  
Article 7.5  Post-Clearance 
Audit C 2023 2026 Legal  
• Develop/review relevant legislations and policies for Post Clearance Audit (PCA)   
 
Policy  
• Develop a compliance assessment policy and procedure incorporating the 
connectivity with risk management  
• Develop a training plan/module to train Customs officials and agents on the 
concept of 'informed compliance' and train the target groups  
• Develop  a methodology/approach to conduct a national compliance assessment 
on an annual basis  
 
Procedures  
• Develop and update processes and procedures that incorporate these aspects of 
PCA:  
  JOB/ACC/TLS/4  
 
- 103 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
• Draft a compliance assessment policy and procedure incorporating the 
conne ctivity with risk management  
• Draft a training module to train Customs and the Agents on the concept of 
'informed compliance' and train the target groups  
• Draft a methodology/approach to conduct a compliance assessment on an annual 
basis for the whole of Tim or-Leste  
• Conduct annual compliance assessments  
• Train Customs staff to conduct PCA as a compliance assessment tool  
 
Human Resources/Training  
• Capacity building and training for Customs officials to conduct Post Clearance 
Audit as a compliance assessment tool  
• Develop data analysis skills and knowledge for Customs and border agencies 
officials  
• Capacity building and training for Customs PCA officials on auditing techniques 
and methodology  
 
Information and Communication Technology  
•  Enhance technolo gical capacity of Border agencies necessary to implement  
 
Infrastructure  
• Provision of appropriate technology and equipment to help implement PCA  
Article 7.6  Establishment 
and Publication 
of Average 
Release Times  B 2022 2024 - 
Article 7.7  Trade Facilitation 
Measures for 
Authorized 
Operations  C 2022 2025 Legal  
• Develop relevant legislation and policies to allow the setup of an Authorised 
Operators (AO) program  
 
Policy  
•  Develop an Authorised Operators policy  
 
Procedures  
•  Develop proper procedures and criteria for the assessment of authorised 
operators that meet specified criteria in the AO program  
 
Human Resources/Training  
• Capacity building and training for Customs and Quarantine officials on the 
implementation of the AO program   
  JOB/ACC/TLS/4  
 
- 104 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 7.8  Expedited 
Shipments  C 2023 2025 Legal/Policy  
• Develop relevant legislation and policies  
 
Procedures  
• Review of outdated Standard Operating Procedures  
 
Human Resources/Training  
• Training of Customs and Border agencies officials on clearance of commercial 
cargos at the airports  
• Training of Customs officials on the implementation of Standard Operating 
Procedures  
 
Infrastructure  
• Appropriate equipment required such as x -rays, scanners and computers for 
border agenc ies 
Article 7.9  Perishable Goods  B 2022 2025 - 
Article 8     Border Agency Cooperation  
    C 2022 2024 Legal/Policy  
• Review and identify gaps in the existing system of coordination and policies  
• Review/develop legal basis to enhance coordination and collaboration between 
border agencies  
 
Procedures  
• Develop Procedures and Memorandum of Understanding (MOU) to help enhance 
the cooperation of border agencies  
 
Human Resources/Training  
• Capacity building and training for Border agencies offi cials on a new coordinated 
approach  
Article 9     Movement of Goods Intended for Import under Customs Control  
    B 2022 2024 - 
Article 10     Formalities Connected with Importation, Exportation and Transit  
Article 10.1  Formalities and 
Documentation 
Requirements  C 2022 2024 Policy  
• Support to customs to expedite publication and activation of the new draft 
procedures under the modernization program  
 
 
Information and Communication Technology  
• Enhance the technological capacity of Customs and border agencies officials to 
ensure full utilisation of the ASYCUDA World system   
  JOB/ACC/TLS/4  
 
- 105 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
 
Infrastructure  
• Upgrade existing Customs system and infrastructure to implement this provision  
Article 10.2  Acceptance of 
Copies  B 2022 2023 - 
Article 10.3  Use of 
International 
Standards  A - - - 
Article 10.4  Single Window  C 2022 2024 Legal  
• Review/develop relevant laws to facilitate the development of a comprehensive 
national single window  
• Compliance review  
• Develop Memorandum of Understanding (MOUs) with other agencies to enhance 
cooperation  
 
Policy  
• Conduct a feasibility study to explore the viability of a national single window 
system  
• Develop a strategy for the implementation of single window  
 
Procedures  
• Develop appropriate procedures and processes to facilitate the implementation of 
single window  
 
Human Resources/Training  
• Capacity building and training for Customs officials and border agencies on the 
implementation of single window system  
• Capacity building for other government agencies and private sector on the 
implementation of single window system  
 
Information and Communication Technology  
• Review of national ICT policies to faci litate the implementation of single window  
• Enhance and upgrade technological capabilities of border agencies and 
government agencies necessary to implement the single window  
 
Infrastructure  
• Provision of appropriate technology and equipment to help implement single 
window   
  JOB/ACC/TLS/4  
 
- 106 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C)  
Article 10.5  Pre-shipment 
Inspection  A - - - 
Article 10.6  Use of Customs 
Brokers  A - - - 
Article 10.7  Common Border 
Procedures and 
Uniform 
Documentation 
Requirements  A - - - 
Article 10.8  Rejected Goods  A - - - 
Article 10.9  Temporary 
Admission of 
Goods and 
Inward and 
Outward 
Processing  B 2022 2024 - 
Article 11     Freedom of Transit  
    B 2023 2024 - 
Article 12     Customs Cooperation  
    A - - - 
 
 
 
 JOB/ACC/TLS/4  
 
- 107 - 
 
   
ANNEX 12 
List of goods that are exempted from import duty  
(a) If the goods accompany a person arriving in Timor -Leste from another territory:  
(i) Two hundred (200) cigarettes and two and one half (2.5) liters of excisable beverages 
per person;  
(ii) Goods up to a value of US US$300 of a non -commercial nature that are exclusively for 
the personal use or enjoyment of travelers or goods intended as gifts, when the nature 
and quantity of the goods indicate that they ar e not imported for, or intended to be 
imported for, commercial purposes;  
(iii) Goods of a non -commercial nature, other than jewelry, that are exclusively for 
the personal use  or enjoyment  of travelers  and that are brought  into Timor -Leste  by 
travelers  in accompanying luggage or carried on or about the travelers ' bodies;  
(iv) Household effects accompanying former residents of Timor -Leste returning to reside in 
Timor -Leste on a permanent basis.  
(b) Imports of the type:  
(i) Exempted under the Vienna Conventions on Diplomatic Relations of 1961 and Consular 
Relations of 1963;  
(ii) Exempted under the Convention on the Privileges and Immunities of the United Nations;  
(iii) Exempted under the Convention on  the Privileges  and Immunities  of the Specialized 
Agencies.  
(c) Goods re -imported in the same condition in which they were exported.  
(d) Goods, other than alcohol or tobacco, imported by registered charitable organizations, being 
charitable organizations that have registered under any law of T imor-Leste that has been 
promulgated for that purpose, if the goods are to be used for charitable purposes of 
humanitarian assistance and relief, education or health care.  
(e) Goods for temporary admission, if the importer has provided security for import duty in 
the prescribed manner.  
(f) Goods for consumption by international staff of UNMIT or members of the Peace Keeping Force 
from contingent countries, if the goods are sold in conformity with prescribed rules of sale.  
(g) Baby formulas that are speciall y designed for babies under one (1) year of age so that after 
preparation they are consumed in a liquid form and provide the health benefits of human milk  
that would normally be provided to a baby that suckles from its mother.  
(h) Tampons and sanitary nap kins. 
(i) Goods not described in previous paragraphs if:  
(i) Goods imported into Timor -Leste other than as personal goods accompanying 
a traveler; and  
(ii)  Import duty that would be imposed on the import if not for this paragraph would be 
US$10 or less.  
  JOB/ACC/TLS/4  
 
- 108 - 
 
  ANNEX 13 
Fees and charges for services rendered  
provided in Customs Code (De cree-Law No. 14/2017 of 5  April  2017 ) 
Article of 
Decree -Law 
No. 14/2017  Name of the Charge  Amount ( US$) 
Article 101  Administrative Penalty for incorrect customs 
declaration resulting in underpayment  Not specified in the Decree -
Law 
Article 136.2  Administrative fine for failing to submit goods  
to customs  Not specified in the Decree -
Law 
Article 136.3  Administrative fine on the person responsible  
for the means of transport who does not comply with 
the obligation to present the goods to customs in 
situations of missing goods  Not specified in the Decree -
Law 
Article 136.4  Administrative fine on the person responsible for the 
means of transport, where the number of unloaded 
volumes exceeds the number notified to customs  Not specified in the Decree -
Law 
Article 139.4  Administrative fine on any person removing goods 
from the areas under customs control before their 
release for free circul ation Not specified in the 
Decree -Law 
Article 145.5  Administrative fine on any person for failing to inform 
Customs on goods of commercial character  Not specified in the 
Decree -Law 
Article 187.1  Fee for temporary importation  For each month or  
part month, 3% of the full 
duty 
Article 188.5  Administrative fine for failing to re -export goods 
temporarily imported within required time limit  Not specified in the Decree -
Law 
Article 201.5  Administrative fine for taking goods from warehouse 
before Customs authorization  Not specified in the Decree -
Law 
Article 201.6  Administrative fine for failing to notify Customs of 
exact quantity of goods in warehouse   Not specified in the Decree -
Law 
Article 202.3  Provision of financial guarantee for customs duties 
suspended during warehousing  50% of the duties  
Due 20 -30% of any excise 
due 
Article 273.2  Fee for clearance of goods where customs formalities 
have not been complied with within required ti me 
limits, and goods have been stored beyond legal time 
limits  The amount of customs duties  
and other duties owing plus a 
fee of 5% of the value  
of the goods  
Article 315.7  Compensatory interest where the incurrence of the 
debt or liquidation is delayed for reasons attributable 
to the declarant  4% 
Article 320.5  Interest on late payment of duties and charges  For each month or part month 
of arrears, 3% of the total 
debt. 
Article 377.1  For the arrival, control and departure of each ship 
performing commercial operations of merchandise or 
passengers.  US$100/ per ship  
Or US$200*/ ship plane 
(*Sunday, holiday, night)  
Article 377.2  For visits aboard, sealing, verifications,  US$50 or US$100* for  
processing of each 
administrative document  
Article 378.1  For arrival, control, and departure of each plane 
performing commercial operations of merchandise or 
passengers.  US$100 / plane  
Or US$200*  
Article 378.2  For visits aboard, sealing, verification  US$50 /  
Or US$100*/ procession of 
each administrative document   
Article 379.1  For entry and fiscal clearance of merchandise in each 
land transport vehicle of commercial transport  US$25 or US$50* / vehicle at 
a customs post  
US$50  or US$100*/ vehicle at 
other locations  
Article 380.1  Entering and clearance of unaccompanied baggage  US$10 or  
US$20*  
Article 380.2  Entering and fiscal clearance of automobiles  US$25 or  
US$50*  
Article 380.3  Entering and fiscal clearance of bicycles and 
motorcycles  US$15 or  
US$30*  JOB/ACC/TLS/4  
 
- 109 - 
 
  Article of 
Decree -Law 
No. 14/2017  Name of the Charge  Amount ( US$) 
Article 381.1  For each operation or assistance of denaturation, 
coloration, fiscal marking, or destruction of 
merchandise  US$10 or  
US$20*  
Article 382.1  For any services at the request of taxpayers, 
involving the displacement of employees outside of 
the Customs facilities  Up to 40 km travelled: US$25  
Up to 100 km travelled: 
US$50  
More than 100 km travelled: 
US$75  
If overnight stay:  
US$30  
Article 383  Fee for underpaying if final verification is a duty of 
more than US$50  US$10/ declaration  
Note: Administrative fines or penalties describ es in Article 101, 136, 139, 145, and 188  are not specified in 
the law . The amount to be defined through other regulation.  
 
 
 
  JOB/ACC/TLS/4  
 
- 110 - 
 
  ANNEX 14 
Action P lan on Revision of  Law No. 8/2008 on the "Taxes and Duties Act "  
Actions to be taken  Target of completion  Responsible Ministry  
- Development of the draft Policy 
Paper for VAT Law  
- Public consultations regarding 
"Fundamentals of VAT Policy and 
Law" to the Government 
Authorities  
- Prepare, elaborate, and 
complete the new VAT law;  
- Revisit the draft VAT law, seek 
for the opinion, comments and 
feedback from any third party on 
the draft law prior to 
submission;  
- Discussion and approval by the 
Council of Ministers within 2021;  
- Discussion and approval by the 
National Parliament in the first 
half of 2022  and 
- Effective Implementation.  2023 for the effective 
implementation, as the 
enactment process of such a law 
will require up to one year after 
its publication at the official 
Government gazette. During this 
period, the key agencies will be 
required to conduct workshops 
and trainings to the regulators to 
ensure its effective 
implementation.  According to the Government 
Resolution No. 31/2020 of 2 
September 2020, the Commission 
is composed of the Minister of 
Finance who chairs, and the 
members of the Government 
responsible for the followin g areas 
of governance:  
 
a) Coordinating Minister of 
Economic Affairs;  
b) Minister of Justice;  
c) Minister of the State 
Administration;  
d) Minister of Territory Planning;  
e) Minister of Petroleum and 
Minerals.  
 
  JOB/ACC/TLS/4  
 
- 111 - 
 
  ANNEX 15 
Invasive Species in Timor -Leste  
Invasion of Chromolaena odorata (Siam weed) in agricultural lands, grasslands, land clearing and 
degraded forests is evident in Timor -Leste and is harmful to both crops and animals. Its ability to 
spread rapidly increases the risk for bush fire. Other identified and potential invasive sp ecies are 
Lantana gorse, Catharanthus roseus, Jatropha gossypifolia, Ziziphus mauritiana and Calotropis 
gigantea.  
 
The Global Invasive Database lists the following invasive species found in Timor Leste :1 
 
Chromolaena odorata, Leucaena leucocephala, Thevet ia peruviana, Mimosa diplotricha, Cyprinus 
carpio, Lutjanus kasmira, Gallus gallus, Porphyrio porphyrio, Cervus timorensis russa, and Varanus 
indicus. Studies also provide the habitat, geographical range and degree of invasiveness of these 
species.  
 
Meanwhile, please see table below on the Annex II of the abovementioned Decree -Law, which has 
listed the Provisional List of Prohibited Invasive Species identified according to the list of plants and 
animals in the National Biodiversity Strategy and Action  Plan, coupled with the invasive species 
identified in the Global Invasive Species Database (GISD) portal document, as follows:  
Provisional  List of Prohibited  Invasive  Species  
Taxonomic Name  English Common Name(s)  
Bufo marinus  Cane Toad  
Duttaphrynus melanostictus  Common Asian Toad  
Cyprinus carpio  Common carp  
Aedes aegypti  Yellow fever mosquito  
Paratrechina longicornis  Crazy ant  
Varanus indicus  Mangrove monitor  
Jatropha gossypifolia  - 
Sida acuta  Common Wireweed  
Lantana camara  - 
Tithonia diversifolia  - 
Parkinsonia sp.  Palo Verde  
Prosopis pallida  Mesquite  
Ziziphus mauritiana  Rhamnaceae  
Chromolaena odorata  Siam Weed  
Mimosa diplotricha  Giant sensitive plant  
Leucaena leucocephala  - 
Thevetia peruviana  Yellow oleander  
 
  
 
1 Invasive Species in Timor -Leste. The Global Invasive Species Database:  
http://issg.org/database/species/search.asp?st=sss&sn=&rn=Timor -
Leste%20(East%20Timor)&ri=18888&hci= -1&ei=-1&fr=1&sts=&lang=EN  JOB/ACC/TLS/4  
 
- 112 - 
 
  ANNEX 16 
Business vehicles available under Law No. 4/2004 of  21 April 2004 on 
Commercial  Companies  
(a) Permanent Representation (Branch) of a Foreign Company  
A company incorporated in another country carrying on business in Timor -Leste must register as 
a permanent representation (branch) of the foreign company (Article 3(1) of Law No. 4/2004). 
It must appoint one or more representatives, one of them being a Timorese national or a foreigner 
holding a valid residence permit in Timor -Leste. The permanent representation is managed by 
the representative(s)  empowered  by means  of a power  of attorney  issued  by the foreign  parent 
company. The permanent representation does not have a statutory share capital, but the foreign 
parent compa ny must allocate working capital to the local branch (Article 3(2) of Law No. 2004/04 
and Article 26 of Decree -Law No. 35/2012). The filing for registration must include the documents 
set out in Decree -Law No. 35/2012, including proof of incorporation of t he foreign parent company 
in the country of origin (e.g.  certificate of registration),  company  by-laws, resolution  by the relevant 
corporate body of the foreign company on the registration of a per manent representation in 
Timor -Leste, appointment of the lo cal representative(s), allocation of capital, a power of attorney 
granting management powers to the representative(s) of the permanent representation, and a map 
depicting the location of the registered offices in Timor -Leste. All documents issued abroad sh ould 
be translated into one of the official languages of Timor -Leste (Portuguese or Tetum) and certified 
by the Timor -Leste diplomatic representation accredited to the country of origin. Timor -Leste law 
provides for several types of companies, but the most  common are Limited Liability Companies by 
Quotas and the Joint Stock Companies.  
(b) Sole Trader  
A foreign natural person may also carry on business in Timor -Leste without the need of incorporating 
a company or registering a branch of a foreign company by registering himself as a Sole Trader. 
Article 33 of Decree -Law No. 7/2006 and Article 24 of Decree -Law No. 35/2012 set out 
the documents that must accompany the filing of registration. A Sole Trader must trade using his 
own name, whether in full  or abbreviated, followed by the abbreviation "ENIN. " A Sole Trader is not 
permitted to adopt any other trading name (Article 42 of Decree -Law No. 35/2012). As previously 
mentioned, a business licen ce or an Authorization to Exercise Activity must be obtain ed by the Sole 
Trader depending on whether the activity he wishes to carry out is deemed a low risk or high -risk 
activity under Decree -Law No. 35/2012. Also, the Sole Trader must obtain a visa to legally enter 
into and stay in Timor -Leste (please refer to Measures Affecting Movement of Natural Persons).  
(c) General Partn ership  
A foreign natural person or a foreign legal person may enter into a General Partnership with one or 
more partners to carry on business to supply services in Timor -Leste.  Chapter II, Articles 160 to 176 
of Law No. 4/2004 (Law on Commercial Companies), sets out the rules on General Partnerships.  
The principal consequence of doing business as a General Partnership is that each partner is fully 
liable, jointly and severally, for the oblig ations of the partnership. General Partnerships can be 
established by two or more partners who may be natural persons or legal persons. The partners 
may contribute with capital or work (Article 161.1), but the latter is not counted towards the share 
capita l amount (Article 163.1). The contributions of capital may be paid within 5 years 
(Article  161.2). Unless otherwise specified in the Articles of Association, working partners do not 
share in losses (Article 163.2), but the Articles of Association should sp ecify the value assigned to 
their contribution in the form of work for the purpose of profit distribution (Article 162.1.(b).  
A partnership must trade either under a corporate name comprising all of the names of the partners 
or under the name of one of th em followed by the words "e Companhia " (Article 160.5 of Law 
No. 4/2004). All partners of a General Partnership are Directors of the partnership (Article 168.1 of 
Law No. 4/2004). At least one Director must reside in Timor -Leste (Article 61 of Law No. 4/20 04), 
meaning that he or she must be a Timorese national or a foreigner holding a valid residence permit.  JOB/ACC/TLS/4  
 
- 113 - 
 
  (d) Limited Partnership  
A foreign natural person or a foreign legal person could form a Limited Partnership with one or more 
partners to supply servic es in Timor -Leste. Chapter III,  Articles 177 to 184 of Law No.  4/2004 (Law 
on Commercial Companies), sets out the rules on Limited Partnerships. The principal feature of 
a Limited Partnership is that the partnership may include "limited or silent partners " whose liability 
is limited to the extent of their capital contribution, and "general partners ", whose liability is the 
same as under a General Partnership (Article  178.2).  
Limited Partnerships can be established by two or more partners who may be natural persons or 
legal persons (Article 178.3 allows companies to be partners). The Articles of Association must set 
out the names of the general partners and of the limited/silen t partners (Article 179(1)), and as well 
specify if the partnership is a "Simple Limited Partnership " or a "Limited Partnership by Shares " 
(Article 179.2). The rules applicable to General Partnerships apply to Simple Limited Partnerships 
(Article 180.1). T he rules applicable to Joint Stock Companies apply to Limited Partnership by Shares 
(Article 180.2). A Limited Partnership must trade under a corporate name composed of one or more 
of the general partners ' names followed by the words "em Comandita, & Compa nhia, em Comandita 
por Acções or "& Comandita por Acções " (Article 177.2).  
(e) Limited Liability Company  
Limited Liability Companies have their capital represented by "quotas, " which are an immaterial form 
of holding equity representing a given percentage  of the capital. A foreign natural person or a foreign 
legal person may incorporate a Limited Liability Company. It may own all (in which case they are 
called Single Quota  holder Limited Liability Company), or a portion of the capital in the company. 
Certa in laws relating to specific business activities may prescribe a minimum or maximum foreign 
(or Timorese) shareholding. For instance, Ar ticle 9.1 (g) of Decree -Law No.  1/2012 of 
1 February  2012 (on Downstream Petroleum Activities) requires that companies w ishing to obtain 
a Downstream Activities Licen ce must have at least 5% Timorese shareholding.  
Chapter IV of Law No. 4/2004, comprising Articles 185 to 218, sets out the rules relating to Limited 
Liability Companies. The principal features of a Limited Liability Company are the following:  
1. The company cannot have more than 30 quota  holders or less than 2 quota  holders (in 
case of a company with only 1 quota  holder, it is called a Single Quota  holder Limited 
Liability Company); in order to increase  the number of  quota  holders above 30 would 
require that the company be converted into a Joint Stock  Company (Article  187).  
2. The capital cannot be less than US$ 5,000 or more than US$ 500,000. The capital can 
only be increased above US$ 500,000 by transforming the company into a Joint Stock 
Company (Article 188). The company 's capital is not divided by shares (as is the case 
of joint stock companies); instead, the quota  holders hold an  immaterial percentage of 
the capital in the company (in Portuguese, "quota "). 
3. Payment of up to 50% of the nominal value of the capital contributions to be made in 
cash may be deferred for a maximum  period of 3 years from the date of the  company 's 
incorpor ation, provided, however, the minimum capital required by law ( US$5,000) is 
fully paid upon incorporation (Article 190).  
4. Quota holders are jointly and severally liable to the company for the payment of 
the entire company 's capital. In the event that any qu ota holder fails to contribute its 
participating interest the other quota holders are liable to contribute that amount to the 
company in proportion to their quotas (Article 191).  
5. After the capital has been paid the liability of quota holders is limited to the amount of 
their quota (Article 191).  
6. The mandatory corporate bodies are (i) the General Assembly of Quota holders and 
(ii) the Board of Directors. At the company 's General Assembly Meetings each quota 
holder holds a vote corresponding to the percentage  of the interest held in the 
company 's capital. The Board of Directors is comprised of one or more directors, who 
may or may not be quota holders, appointed for an unlimited term, or for a three -year 
limited term. If the company has a capital equal to or higher than US$ 200,000, the 
managemen t must be comprised of a Board of Directors with an odd number of 
members (minimum of 3 directors). A Limited Liability Company is required to appoint JOB/ACC/TLS/4  
 
- 114 - 
 
  a company secretary and an auditor or an auditing board if there are more than 
10 quota holders, the comp any issued debentures, or if prescribed thresholds for capital 
or volume of income are exceeded (Article 41 of Law No. 4/2004).  
7. One Director must be a resident of Timor -Leste (Article 61 of Law No. 4/2004), 
 meaning a Timor -Leste national or a foreigner ho lding a valid residence permit.  
8. The name  of a Limited  Liability  Company  must end with the word "Limitada " or the 
abbreviation "Lda." 
(f) Single Quotaholder Limited Liability Company  
A foreign  natural person or foreign legal person may establish a Single Quotaholder Limited Liability 
Company in Timor -Leste.  
Chapter IV, Part IV of Law  No. 4/2004, comprising Articles 219 to 221, addresses Single Quotaholder 
Limited Liability Companies. The provisions applicable to Limited Liability Companies (above) apply 
with the necessary adjustments (Article 219.1). The rule requiring one Director  to be a resident in 
Timor -Leste also applies to Single Quotaholder Limited Liability Companies (Article 61). The liability 
of the sole quotaholder is limited to the value of the capital subscribed (Article  191).  
The name of a single quotaholder company must end with "sociedade unipessoal " or "unipessoal " 
followed by the word "Limitada " or "Lda" (Article 219.3).  
Single  Quotaholder  Limited  Liability  Companies  are subject  to certain  strict rules concerning business 
transactions with the sole quotaholder, as follows: under penalty of being deemed  null and void, any 
such transaction must be (i) made in writing (unless a more formal procedure is legally required) 
and (ii) necessary, usef ul and convenient to fulfill the company 's object. Any transaction must 
additionally be subject to a prior report drawn up by an independent accounting auditor, who shall 
declare that the company 's interest is duly safeguarded and that the transaction is e xecuted on 
an arms-length basis.  
(g) Joint Stock Company  
A foreign natural person or a foreign legal person could incorporate a Joint Stock Company to carry 
out business in Timor -Leste but there must be at least 3 shareholde rs and a minimum capital of 
US$50,000.  
Chapter V of Law No. 4/2004 comprising Articles 222 to 301 sets out the rules relating to Joint Stock 
Companies . The principal features of a Joint Stock Company are the following:  
1. The company must have a minimum of 3 shareholders (Article 222.1) ; 
2. The share capital must be at least US$ 50,000 and all shares shall have the same value, 
with a minimum of US$ 10 (Article 222). Each shareholder attending the general 
assembly has the number of votes equivalent to their number of ordinary shares in 
the share capital of the company. The share capital may be paid up in cash or in kind 
(assets capable of being seized, credit rights over third parties);  
3. The company may have ordinary shares (granting voting rights and rights to dividends 
from distributable pro fits), which can be divided into different categories, and 
preferential shares (which do not grant voting rights, but grant a right to priority 
dividends and to priority reimbursement in case of distribution of the company 's assets 
due to liquidation). Sha re certificates may be nominative or bearer (and can be 
converted from one to another) and have coupons for collecting dividends. Under certain 
circumstances an S.A. company may also issue bonds;  
4. The incorporation of the company requires the full subscription of the share capital. 
A maximum of 75% of the share capital in cash may be paid up within a maximum 
period of five 5 years, provided that the minimum statutory share capital ( US$50,000) 
is paid prior to the incorporation of the company. The en tire share capital in kind must 
be paid up prior to the incorp oration of the company (Article  223 and 238);  
5. The liability of each shareholder is limited to the payment of their respective shares 
(Article 239);  
6. One director must be a resident of Timor -Leste  (Article 61 of Law No. 4/2004);  JOB/ACC/TLS/4  
 
- 115 - 
 
  7. The company must have the following mandatory corporate bodies: (i) a General 
Assembly of Shareholders, (ii) a Board of Directors, (ii i) a company secretary and, 
(iv) a single auditor or an auditing board (Article 41 of Law  No. 4/2004). Additionally, 
the Board of Directors may delegate the day -to-day management of the company to 
one of the Directors or in an executive commission comprising several directors. 
The Board of Directors must be comprised by an odd number of Direct ors equal to or 
higher than 3, appointed for a maximum of 3 years. The audit body is composed of 
3 members (one of which must be a certified auditor), who are elected for a 1 -year 
term with the possibility of re -election.  
8. The name of a Joint Stock Company must end with the words "Sociedade Anónima " or 
with the abbreviation "S.A." 
(h) Additional Branches  
A foreigner that has already incorporated and registered a compa ny in Timor -Leste (under 
Decree - Law No. 7/2006 as amended  by Decree -Law No. 35/2012) and obtained a commercial 
licence (under Decree -Law No. 34/201 7) or an Authorization to Exercise Activity (under Decree -Law 
No. 35/2012) may establish additional branches of the business in new locations. However, if 
the commerc ial licen ce limits the approved business to particular premises, then a new application 
for a licen ce must be made. In addition, Decree -Law No. 7/2006 provides that a company must 
register all branches of its company (Article 3(b)). Article 23.2 of Decree -Law N o. 35/2012 sets out 
the documents that are required to be lodg ed in order to register the new  branches.  
In order to simplify the aforementioned system, the Government has presented to the National 
Parliament a bill proposing the revision of the Law on  Commercial Companies. The proposal is 
currently being discussed in the National Parliament and it is expected to be approved in 
the upcoming months.  
The main simplification measures are as follows:  
1. Elimination of the General Partnerships as well as the Limited partnerships companies, 
which were never used in practice, and are being abolished in other legal frameworks;  
2. Elimination of the bearer shares in the Joint Stock Companies;  
3. Introduction of rules to release accurate informatio n on the beneficia l ownerships;  
4. Elimination of the capital share in the Limited Liability Company;  and, 
5. Introduction of rules regarding affiliated companies.  
  JOB/ACC/TLS/4  
 
- 116 - 
 
  ANNEX 17 
Measures Affecting Movement of Natural Persons  
The relevant  legislation affecting  the temporary entry or temporary stay of natural persons is:  
1. Law No. 9/2003 of 15 October 2003 - Immigration and Asylum Law  (hereinafter referred 
to as the Immigration law);  
2. Decree -Law No. 5/2010 of 16 March 2010 - On Granting of Visit Visas and Transit Visas 
On Arrival; and,  
3. Decision No. 232/SEPFOPE -GSE/D/X/2013 of 1 October 2013, issued by the Secretary 
of State for Professional Training and Employment Policy (SEPFOPE) – On granting of 
the authorization needed for foreign employees to work in Timor -Leste and as well 
granting the relevant visas (for work purposes).  
The relevant  agencies of the government responsible for granting authorization for entry and/or stay 
of natural persons are:  
1. The Department of Immigration within the Ministry of Interior;  
2. The Directorate -General for Consular Affairs within the Ministry for Foreign Affairs and 
Cooperation;  
3. The General Labor Inspectorate under SEPFOPE.  
Depending on the type of visa re quested, applications are made to the Department of Immigration 
or to Directorate -General for Consular Affairs. The Directorate -General for Consular Affairs  acts on 
the advice of the Department of Immigration. Regarding the granting of visas for work purpo ses, 
prior to the submission of the visa application to the Directorate -General for Consular Affairs, 
the General Labor Inspectorate must authorize the performance of the  professional activity in 
Timor -Leste and verify the qualifications needed for such pe rformance.  
- Visas  
The Immigration Law (Law No. 9/2003) provides for three categories of visas:  
1. Ordinary visas of which there are 4 different classes, none of which qualify the person 
to work in the country (Article 35);  
2. Work visas which do authorize the b earer to carry ou t a professional activity as 
an employee or independent worker (Article 36); and  
3. A visa to allow the bearer to apply for temporary residency, which can be accompanied 
by an authorization to carry out a professional activity as an employee or independent 
worker (Article 37).  
The law also provides for those residing on a longer -term basis to apply for permanent  residence.  
- Ordinary Visas  
There are 4 classes of Ordinary Visas:  
Ordinary Visa Class I applies to persons entering for either tourism or business. The visa can be for 
a period of up to 90 days, is valid for one year, and can be granted for a single entry or for multiple 
entries (Article 35.2 of Law No. 9/2003). An ordinary Class I Visa can be extended for up to 90 days 
(Article 4 2.1(a) Law No. 9/2003), allowing a total stay of up to 180 days.  
According to Decree -Law No. 5/2010, persons arriving at an airport or port who are nationals of 
a country on a list of authorized countries may apply for an Ordinary Class I Visa at the port of entry  
(Article 3.1 of Decree -Law No. 5/2010), and the Department of Immigration can grant the visa at 
the port of entry (Articles 38.4 and 39.4 of Law No. 9/2003). Persons arriving at an airport or port, 
who are not nationals of a country on the list of  authorized countries need to apply for an Ordinary 
Class I Visa at a Timor -Leste consulate abroad (Article 4.2 of Decree -Law No. 5/2010) and the visa 
is issued by those Consulates (Article 38.4 and 39.4 of Law No. 9/2003). The abovementioned list 
of autho rized countries has not yet been published and Timor -Leste Embassies and Consulates are 
not issuing visas, thus, in practice, the Ordinary Class I Visa must be obtained on arrival at the port 
of entry.  JOB/ACC/TLS/4  
 
- 117 - 
 
  Under Decree -Law No. 5/2010 persons arriving at a land  border who are nationals of Indonesia, or 
of a country with which Timor -Leste has an agreement, may apply for an Ordinary Class I Visa at 
the land border control post. Persons arriving at a land border who are nationals of any other country 
must apply for  an Ordinary Class I Visa at a Timor -Leste consulate abroad (Article 2.2 of 
Decree -Law). Currently, Timor -Leste 's Embassies and Consulates are not issuing visas, thus, in 
practice, the abovementioned visa must be obtained at the ports of entry at the borde r. 
According to the terms of a bilateral agreement between Timor -Leste and Portugal, entered into on 
20 May 2002, Portuguese nationals who present a Portuguese passport on arrival and who seek to 
enter for tourism, business, cultural, or journalism purpose s are exempted from having to obtain 
an Ordinary Class I Visa. They may stay up to 90 days from the date of arrival. The stay period may 
be extended up to a further 90 days after arrival on application to the Department of Immigration, 
where that further s tay is justified on exceptional grounds.  
Parliamentary Resolution No. 10/2015 of 5 August 2015, approving the Agreement between 
Timor -Leste and the European Union, establishes a visa exemption regime for European Union 
citizens  and Timor -Leste citizens arr iving in the respective territory of the counterpart for a maximum 
period of 90 days in each period of 180 days. This exemption is not applicable to persons traveling 
for purposes of performing a professional activity. This agreement enters into force on t he first day 
of the second month following the date on which the last notification of conclusion of the respective 
internal approval procedures occurs.  
Ordinary Class II Visas are designed for short transit through Timor -Leste for a maximum of 72  hours  
(Article 35.3).  
Ordinary Class III Visas are student visas issued for up to one year at a time but renewable 
(Article  35.4)  
Parliamentary Resolution No. 11/2009 of 6 May 2009, approved the agreement on the granting of 
visas for students who are nationals of t he Member States of the Community of Portuguese Speaking 
Countries, which sets forth common rules concerning the granting of said visa.  
Ordinary Class IV Visas allow for a duration of up to 180 days for persons visiting "on a cultural  trip, 
for scientific research, as an artist or athlete, or as a foreign media correspondent. " 
- Work Visa  
Under Law No. 9/2003 applications for work visas must be made to a Timor -Leste consular office 
abroad or, in cases where the applicant resides in countries or territories where there are no such 
entities, to the Directorate -General for Consular Affairs of the Ministry of Foreign Affairs and 
Cooperation (Article 39). However, for the time being, Timor -Leste 's Embassies and Consulates are 
not issuing visas, thus, at present, the application must be submitted in Timor -Leste to 
the Directorate -General for Consular Affairs. Pursuant to Law No. 9/2003 the Directorate -General 
for Consular Affairs of the Ministry of Foreign Affairs and Cooperation must consult with 
the Immigration D epartment of the Ministry of the Interior and with the General Labor Inspectorate 
(Articles 38.2 and 38.3). The applicant must, among other requirements, supply evidence of 
employment and professional competence (Article 40). If the Directorate -General for  Consular 
Affairs in the Ministry of Foreign Affairs and Cooperation approves the visa, then it issues 
an authorization to the applicant and to the border control point, which issues the visa (Article 39.3).  
The Work Visa allows the bearer to carry out the employment or the professional activity that was 
claimed in the visa application (Article 36). The Work Visa allows a stay of up to one year and is 
valid for one or multiple entries (Article 36.3). The beare r may obtain three extensions for additional 
periods of 1 year with each extension, up to a total of 4 years (Article 42.1(b)).  
A person granted a Work Visa to be employed with a particular employer is not permitted to work 
for a different  employer unless the person obtains approval from the General Labor Inspectorate 
(Article 8.3). 
- Visa to Establish Temporary Residency  
There is an additional  category of visa for persons to enter the country for the purpose of applying 
for temporary residence (Article 37 of Law No. 9/2003). This visa allows the bearer to remain in 
the country for 6 months. It is possible that the terms of the visa may allow activity as an employee JOB/ACC/TLS/4  
 
- 118 - 
 
  or independent worker. Law No. 9/2003 states that the number of such visas allowing work is l imited 
according to an annual resolution of the Council of Ministers (Article 37.5). However, taking into 
consideration that this resolution has not yet been published, the granting of such visa is not 
currently subject to a maximum quota.  
- Application fo r Temporary Residence or for Permanent Residence  
A person who has been a legal resident for 12 years may receive permanent residency status 
(Article  53). However, persons who are a resident for a lesser period may apply for a temporary 
residence authorizat ion, which is valid for 2 years but can be ren ewed for equal periods (Article  51). 
  JOB/ACC/TLS/4  
 
- 119 - 
 
  ANNEX 18 
Relevant sources of laws regarding interests in real estate  
1. Law No. 1/2003 of 10 March 2003, on the Legal Framework on Real Estate Property;  
2. Decree -Law No. 19/2004 of 29 December 2004, on the Legal Framework on the Official 
Allocation and Leasing of Real Estate Property belonging to the Private Domain of the State;  
3. Ministry of Justice Order No. 19/GM/MJ/III/2009 of 20 March 2009, on the definition of small, 
medium, and large commerce and industries;  
4. Decree -Law No. 6/2011 of 9 February 2011 – Rules for Relocation of Unlawful Occupants of 
State Property;  
5. Decree -Law No. 27/2011 of 6 July 2011 on the Settlement of Ownership of Immovable Asset s 
in Undisputed Cases (the "Ita Nia Rai " project);  
6. Law No. 14/2011 of 28 September 2011, Private Investment Law;  
7. Law No. 10/2011 of 14 September 2011, Approves the Civil Code (CC);  
8. Ministry of Justice Ministerial Order No. 16/2011 of 27 July 2011, about th e Cadastral Survey 
and Data Collection Procedures;  and, 
9. Ministry of Justice Ministerial Order No. 23/2011 of 23 November 2011, on Conversion of 
Ownership Statements into Ownership Titles in Undisputed Cases ; 
10. Law No. 13/2017 of 5 June 2017 on "Special Regim e to Define Real Estate Ownership " (Land 
Law).  
The situation existing under the above laws may change as a result of the approval of the Land Law 
by the National Parliament  on 26 April 2017, further enacted by the President of the Republic of 5 
June 2017, aiming to resolve disagreements and uncertainties that have arisen as a consequence of 
the post -colonial, post -occupation, and post -conflict situation of the country. The Land Law package 
consists of the following main Laws:  
I. Law on Special Regime fo r the Definition of Ownership of Immovable Property 
("Land  Law"), which establishes the criteria for the recognition of property rights; 
establishes criteria and mechanisms for resolution of land disputes; recognizes 
communal land and creates Community Pro tection Zones.  
II. Expropriation Law, which sets forth the procedures and constraints on expropriation by 
the State as well as the rules on the definition of the compensation to be paid as a result 
of expropriation procedures.  
III. Law on the creation of an Immovab le Property Fund Law, which creates a financial fund 
for the payment of financial compensation due as a result of the applicability of 
the above -mentioned draft laws.  
- Where the State is the Owner of the Land and the State Grants the Lease  
The Legal Frame work on Real Estate Property, approved by Law No. 1/2003 of 10 March 2003, 
provides that the State owns certain land (Article 4.1). Specifically, the State 's Real Estate property 
is categorized as that belonging either to (i) the Private Domain of the Stat e, or (ii) as belonging to 
the Public Domain of the State, which is defined as those areas set forth in the law which cannot be 
subject to private appropriation unless otherwise expressly foreseen under any law allowing for its 
lease, concession or tempora ry use.116 Law No. 1/2003 also provides for the power of the State to 
evict others from the State 's land (Article 7), but the exercise of the power to evict illegal occupiers 
does not prejudice the rights acquired by b ona fide third parties (Article  9). Th e law also provides JOB/ACC/TLS/4  
 
- 120 - 
 
  for the State to take temporary administrative control of abandoned land (Article 15) and specifically 
authorizes the State to lease abandoned land to locals or foreigners and to natural persons or 
corporate bodies (Article 15.3).  
The lease of properties belonging to the State is mainly governed by Decree -Law No. 19/2004 of 
29 December 2004, on the Legal Framework on the Official Allocation and Leasing of Real Estate 
Property belonging to the Private Domain of the State. This legal frame work specifically allows for 
the State to lease State -owned property to nationals or foreigners and to natural persons or 
corporate bodies (Article 9). The law provides that the State has an obligation to ensure the use and 
enjoyment of the property by the  lessee (Article 7.(b)). Article 11 provides for the rental amount to 
be determined according to a general framework that may "establish a special framework for national 
citizens. " 
For leases of "medium or large -scale commerce or industry belonging to citi zens and to national 
and/or foreign companies " (Article 10.1(d)), the Decree -Law sets out a process of publicly calling 
for proposals and for the award of the lease by a Rent Committee (Article 12). The procedure does 
not apply to persons occupying State p roperty at the date Law No. 19/2004 came into force, because 
in this situation the State may negotiate directly with said persons without being obliged to launch 
a tender procedure (Article 26). Irrespective of the tender requirement, it is fairly common f or 
the State to enter into direct negotiations with parties interested in leasing State land.  
Where the State leases abandoned land, the term of the lease may only be of 3 years, renewable  
for equal terms, unless the land owner has subsequently claims possession of the land (Article  22.2 
of Decree -Law No. 19/2004).  
Pursuant to Article 14.2 of Decree -Law No. 19/2004, a lease agreement is subject to the following 
maximum terms, depending on t he type of lessee or use given to the land:  
(a) 5 years  – land used for private accommodation;  
(b) 10 years  – land used for small private commerce and industries;  
(c) 20 years  – land used by Humanitarian Agencies and NGOs;  
(d) 30 years  – land used for medium commerce and industries;  
(e) 50 years  – land used for large commerce and industries, and for agriculture; and,  
(f) 50 years  – land used by International Organizations and Diplomatic Representations  
The definition of small, medium and large comm erce and industries is set forth in Ministry of Justice 
Order No. 19/GM/MJ/III/2009 of 20 March 2009, and is as follows:  
(a) Large commerce and industries: investments in an amount equal to or higher than US$20  million 
or that encompass the lease of State property with a total  area equal to or higher than 5  hectares 
(for tourism purposes) or higher than 100 hectares (for any other purpose);  
(b) Medium commerce and industries: investments in an amount higher than US$ 1 million; and  
(c) Small commerce and ind ustries: investments in an amount up to US$ 1 million.  
The provisions in Decree -Law No. 19/2004 relating to the term of a lease of State owned land may 
not apply if the lease is to be entered into under the Private Investment Law, as approved by 
Decree -Law No. 14/2011. Pursuant to the Private Investment Law, certain benefits and exemptions 
may be granted to investors that meet all the criteria required to receive an Investor Certificate 
(the document issued by the authorities that sets forth, inter alia, th e duties of the investor, 
the incentives and benefits to be granted by the State, the terms of its cancellation, and the dates 
of commencement, implementation and termination of the investment or reinvestment project). 
Article 24 of the Private Investment Law provides that the State can enter into a lease agreement 
with the holder of an Investor's Certificate for a maximum time period of 50 years, renewable once 
for an equal period of time.  
Leases Where the Lessor is the Registered Proprietor of Land under the Registration System 
Established under Decree -Law No. 27/2011 of 6 July 2011  JOB/ACC/TLS/4  
 
- 121 - 
 
  A Ministerial Order of the Ministry of Justice in 2008 approved the commencement of a cadastral 
survey. The survey was carried out as a project of United States Agen cy for International 
Development (USAID) called the Ita Nia Rai project (meaning "our land" in Tetum) from 2008 until 
2012 when USAID handed the project over to the Ministry of Justice. The cadastral survey collected 
records of land claims in certain local  areas, whether by individuals, legal entities, communities, 
groups or the State and published maps showing individual parcels of land and the claimants claiming 
an interest in that land. During that period, claimants who had claimed ownership over a given  plot 
of land (and provided that no third parties challenged such claim within a given period of time) were 
granted a "definitive" land registration title, and the validity of this title can only be challenged before 
the courts. This database of maps of pa rcels of land and the relevant claimants were to become 
the basis of the property register created by Law No. 27/2011, and further regulated by Ministerial 
Order No. 16/2011 of 27 July 2011, on Data Collection Procedures, and Ministerial Order No. 23/2011 
of 23 November 2011, on Conversion of Ownership Statements into Ownership Titles in Undisputed 
Cases.  
Decree -Law No. 27/2011 established the National Property Cadaster, which is the database that 
contains the information collected through the cadastral sur vey process (Article 3) and provides that 
the National Property Cadaster is composed of the cadastral database and the property register 
database (Article 3.2). Pursuant to the Ministry of Justice Ministerial Order No. 23/2011, the results 
of the cadastral  survey process were organized into two lists: a list of  parcels of land where 
the ownership was undisputed, and a list of parcels of disputed land. Under Article 8 of Decree -Law 
No. 27/2011, and implementing regulations in Ministerial order 23/2011, the c laimants of 
the undisputed parcels of land were entered into the register as the registered owner of the parcel 
of land. Even though the process permitted claims by juridical entities, it was only undisputed claims 
by Timorese natural persons that resulted  in the claimants becoming registered holders. 
(Article  1.2(a) and (b) of Decree -Law No. 27/2011 and Article 2.1(a) of Ministerial Order 
No. 23/2011).  
Registration creates a presumption that the registered holder is the owner of the registered parcel 
of land (Article 4.2) but it remains possible at any time for others to challenge the recognition of 
ownership that has been registered (Article 8.3). The person challenging the claim would bear 
the burden of proving that the registered holder is not the owner of the land.  
Registration of recognition of ownership in the register also affects the duration of the period of 
uncontested occupation that must pass in order to justify a claim of title through prescription 
(adverse possession). Generally, the law in Tim or-Leste as to acquisition of title in land requires 
a period of 25 years or, if the possession is in good faith, of 20 years (Article 1216 of the CC of 
Timor -Leste, as approved by Law No. 10/2011). However, where there is "a title of purchase, that 
has be en registered, " an acquisition of ownership through prescription occurs after 15 years, or if 
the possession is in good faith after only 10 years (Article 1214 of the CC).  
A Registered Holder may transfer their ownership. In line with Article 53.4 of the C onstitution, Article 
10.5 of Decree -Law No. 27/2011 provides that only a transfer of ownership to a person who is 
a national of Timor -Leste can be recorded in the register.  
The law protects the title of a person who purchases land from the Registered Holde r for valuable 
consideration in good faith and who then registers their ownership. A third party purchasing rights 
with respect to a property for valuable consideration in good faith from the Registered Owner, shall, 
after the expiration of 3 years after t he date of registration of the transfer have rights that cannot 
be affected by any subsequent claim (Articles 10.8 and 10.9). In view of the foregoing, lessees 
should always confirm if the alleged owner has registered his "ownership rights" under the Ita N ia 
Rai project and obtained the above mentioned definitive land registration title. Should the alleged 
owners have such titles, this would give the lessee confidence in the legal status of the property, 
given that in principle the Registered Holder has goo d title and capacity to ensure use and enjoyment 
of the leased land.  
After a lapse, the Government is continuing with a program of cadastral survey. This ongoing 
program of survey and registration will gradually increase the area of land that is subject to  
the registration system under Decree -Law No. 27/2011.  JOB/ACC/TLS/4  
 
- 122 - 
 
  - Leases of Other Land  and Alternative Legal Arrangements  
Where land has not been subject to the cadastral survey or has been subject to the cadastral survey 
but is disputed, it is more difficult to verify the ownership of land. However, as mentioned above, 
the Government of Timor -Leste is working to improve the certainty of land tenure in other situations 
through enacting the proposed new laws described above.  
In addition to lease agreements, Articles 1414 et sequitur  of the CC detail the terms and conditions 
for the constitution of surface rights, an alternative legal mechanism t o obtain access to land in 
Timor -Leste. The surface right is a right in rem that consists of the ability to construct or maintain, 
temporarily or perpetually, a building on third party land (or have or maintain a plantation on such 
land). Based on this pro vision, a person may build and maintain, temporarily or perpetually, 
buildings or structures on State -owned property or private property. Contrary to what happens, for 
example, in a concession agreement, the surface rights solution has the advantage of the  holder 
becoming the owner of the building/facility once completed, whilst the State/private owner remains 
owner of the land underneath. The surface rights holder can sell, lease or otherwise encumber its 
right with an authorization from the grantor. The s urface rights require payment of a fee, which may 
be an annual fee or a one -time payment made at the time of constitution of the surface rights. Upon 
expiration of the surface rights, the constructions automatically revert to the owner of the land, 
however , unless otherwise agreed between the parties, the surface right holder would have the right 
to compensation. Similar to the lease solution, surface rights may be granted to private land or in 
certain areas of Private Domain of the State.  
 
  JOB/ACC/TLS/4  
 
- 123 - 
 
  ANNEX 19 
Ministries and State Bodies Responsible for the Regulation  in Specific Services 
Sectors/Sub -Sectors  
Services sector / sub -sector  Responsible Ministry / state body  
Financial services    Central Bank of Timor -Leste (CBTL)  
Telecommunications  National Communications Authority  
Educational services  Ministry of Higher Education, Science and Culture  
Ministry of Education, Youth and Sport  
Oil & gas and mining  Ministry of Petroleum and Mineral Resources and National 
Authority fo r Petroleum and Minerals  
Legal services  Ministry of Justice  
Services by health professionals (hospital 
services, medical and dental services, and other 
human health services)  Ministry of Health  
Construction services  Ministry of Public Works, Transports and Communications  
Transport services  Ministry of Public Works, Transports and Communications  
  JOB/ACC/TLS/4  
 
- 124 - 
 
  ANNEX 20  
Regulations on trade in services  
Business Services  
Professional services  
- Legal Services   
 Law No. 11/2008 of 30 June 2008 (as amended by Decree -Law No. 39/2012 of  1 August  2012,  
Law No. 1/2013 of 13 February 2013  and Law No. 4/2015 of  30 December  2015) sets forth that 
the legal profession is reserved for those who, until a Timor -Leste Bar Assoc iation is  created 
and begins operating, are registered as lawyers with the Centre for Legal Training(CLT).  
Article 2.3 enumerates the requirements that foreign lawyers must comply with in  order to be 
registered with CLT. These include, (i) having a law de gree, (ii) being licen sed to  practice in 
another country; (iii) having knowledge of the Timor -Leste legal framework, (iv) having w ritten 
and spoken command  of at least one of the official languages of Timor -Leste and , (v) having 
practiced for a minimum of 5 years. Also, in accordance with the most recent amendments to  
the applicable legislation, foreign lawyers must (i) practice in association with a Timorese lawyer 
and (ii) agree with the latter on the applicable fees.  
 Decree -Law No. 3/2004 of 4 February 2003 sets forth the Legal Framework of Notaries, one of 
the requirements being that the notary must be a national of Timor -Leste. Decree -Law 
No. 2/2012 of 15 February 2012 provides for the Framework of Registrars and Notaries.  
- Medical and dental services   
Decree -Law No. 14/2004 of 1 September 2004 (as amended by Decree -Law No. 40/2011 of 
21 September 2011) sets forth that all medical staff (i.e. doctors, midwives, nurses, therapists, 
and diagnostic technicians) must be registered with the Ministry  of Health, which is responsible 
for assessing the respective qualifications. Foreign doctors may apply for registration with 
the Ministry of Health and are required to obtain a work or residence visa under the general 
provisions of the law and the rules s et forth in Decree -Law No. 14/2004, as amended by 
Decree -Law No. 40/2011.  
Decree -Law No. 18/2004 of 1 December 2004 sets forth the requirements for private health 
services, including a licensing procedure that must be followed prior to opening to the publi c of 
such health units.  
Decree -Law No. 13/2012  of 7 March  2012 provides  for the rules on the Careers  of Health 
Professionals employed by the State.  
Decree -Law No. 12/2004 of 26 May 2004, on Pharmaceutical Activities, provides for the licensing 
requirements for the importation, storage, wholesale, retail sale, and exportation of medicines 
for human use.  
Other business services  
- Advertising services   
Decree -Law No. 51/2011 of 21 December 2011 approved the Legal Framework on Advertising 
Activitie s, which sets forth the rules and principles that advertising messages must comply with, 
notably for consumer protection. This statute contains a list of services and products that cannot 
be advertised (e.g. weapons and munitions) as well as a list of prod ucts where advertising is 
subject to specific rules, such as tobacco, alcoholic drinks, medicines, cars, and immovable 
properties. Notwithstanding the above "content rules, " the provision of advertising services 
(notably the rules and requirements for licensing advert ising professionals) is not yet  regulated.  
- Services incidental to agr iculture, hunting and forestry   JOB/ACC/TLS/4  
 
- 125 - 
 
  The United Nations Transitional Administration in East Tim or (UNTAET) Regulation No. 2000/17 
of 10 May 2000 prohibits the explorations and exportation of wood. No other regulations on 
the performance of agricultural, hunting, or forestry activities and ancillary services are currently 
in place.  
- Services inciden tal to fishing   
Decree -Law No. 6/2004 of 21 April 2004 approved the Legal Framework of Fishing Management 
and Regulation that sets forth the licensing procedure for those wishing to carry out fishing 
activities. Foreign natural persons and legal entities c annot obtain licen ces for artisanal fishing 
or deep -sea fishing, as these are reserved for nationals. Government Decree No. 5/2004 of 
28 July 2004 – Fishing General Regulation – further details the licensing procedures as well as 
the rules on the acquisiti on and transfer of property over fishing vessels.  
- Services incidental to mining   
Ministerial Diploma No. 1/2008 of 30 July 2008 (as amended  by Ministerial Diploma No.  1/2009, 
of 12 August 2009)  details the procedure to be foll owed for the acquisition of (i)  Survey Licen ces 
which are granted for the development of geological studies of some specific minerals, 
(ii) Preliminary Licen ces which are granted in cases of large -scale mining for the devel opment 
of studies and works to be carried out prior to the exploration phase, and , (iii) Permanent 
Licences, which are granted for the beginning of the operation of an exploration unit.  
This statute also sets forth the applicable fees, such as (i) the extr action rate, i.e. the amount 
of the levy, which is based on the type of mineral and on the quantity of extracted mineral and 
(ii) licensing rate, a one -time payment due upon the issuing of the licen ce. 
The Mining Code is expected to be approved in the near future.  
Law No. 13/2005 of 2 September  2005 on "Petroleum Activities " sets forth the  rules applicable 
to the authorization of petroleum activities. However, it does not include provisions on licensing 
of activities incidental to petroleum exploration and production ( "oilfield  services. ") 
Communication Services  
Decree -Law No. 15/2012 of 28 May 2012 created the National Communications Authority (NCA), 
the supervisory authority and regulator for this sector. The NCA manages registration of 
telecommunicati ons services providers and of entities that operate telecommunications networks, 
and grants radiofrequency spectrum licen ces. 
Postal services  
 
Postal Services are governed by Decree -Law No. 17/2004 of 3 November 2004 (Articles 11 and 12). 
Under this statute, Universal Pos tal Services are subject to an exclusivity regime, while other 
services (such as courier services) are open for competition.  
Courier services  
 
Article 12 of Decree -Law No. 17/2004 allows courier services to be carried out on a competi tion 
basis, provided certain thresholds are met. The country is currently served by several courier 
services licen sed to conduct their business under the general business regulations and Decree -Law 
No. 17/2004.  
Telecommunication services  
 
Decree -Law No. 1 5/2012 regulates the provision of telecommunication services in Timor -Leste, 
which are defined as, "Any retail or wholesale service commonly rendered upon payment by the  user, 
that consists  primarily or wholly of telecommunications. " In turn, telecommunications are defined  
as the "transmission, reception or emission of signals representing  symbols, writings, images, 
sounds or information of any nature, by means of wires, optical systems, radio electric means, and 
other electromagnetic systems ." JOB/ACC/TLS/4  
 
- 126 - 
 
  Whoever wishes to use the radiofrequency spectrum, operate radio equipment,  or provide 
telecommunications or  telecomm unication network services in Timor -Leste, must be granted 
a licence by the NCA. Chapter V of Decree -Law No. 15/2012 (Articles 30 through 33) establishes 
the rules on mandatory registration of telecommunication services providers and providers of 
telecommunications networks. Established in Article 32 is the NCA 's powers to exempt an operator 
from registration.  
Audiovisual services  
 
Under th e Media Law (Law No. 5/2014 of 19 November 2014) radio and television media services 
require a radiofrequency spectrum licen ce granted by the NCA. Article 24 of the same statute 
determines that the "participation of foreign individuals or legal persons in the share capital of 
a media corporation may not exceed 30%. " 
Construction and Related Engineering Services  
Decree -Law No. 27/ 2010 of 22 December 2010 establishes the rules for the certification and 
registration of construction and construction consultancy companies. However, to date, Decree -Law 
No. 27/2010 is not currently being enforce d. Decree -Law No. 26/2010 of 22  December 20 10 sets 
forth the rules for the registration of sole entrepreneurs of the  construction sector. Pursuant to Article 
6, only national citizens are able to apply for registration as sole entrepreneurs. Decree -Law No. 
2/2010 of 18 February 2010 provides for sp ecial procedures for awardi ng construction works up to 
US$250,000 to local companies with registered offices in the sub -districts.  
 
Educational Services  
Primary education services  
Decree -Law No. 7/2010 provides for the Legal Framework for the Administration and Management 
of the Basic Education System, containing the rules applicable to public primary education.  
Decree -Law No. 23/2010 of 9 December 2010 approved the Rules on Careers for Child Educators 
and Basic and Secondary Education Teachers  employed by the State.  
Secondary education services  
Decree -Law No. 33/2011 of 3 August 2011  approved the Legal Framework for the Administration 
and Management of the public Secondary Education System.  
Higher education services  
Decre e-Law No. 8/2009 of 1 9 May 2009  sets forth the Legal Framework of the Higher Education 
Institutions according to which such institutions may assume the form of a foundation, association, 
cooperative, or limited liability company by quotas or joint stock company. This statute i ncludes a 
set of requirements to be met by each type of institution.  
Environmental services  
Decree -Law No. 5/2011 of 9 September 2011 on "Environmental Licensing " regulates public and 
private  projects capable of giving rise to environmental and social impacts and prescribes that they 
must undergo an environmental licensing procedure depending on the characteristic and sector of 
the project.  
 
Financial Services  
All insurance and insurance -related services  
- Relevant laws and regulations  
 
The relevant laws and regulations relating to insurance and insurance -related services are:  
 JOB/ACC/TLS/4  
 
- 127 - 
 
  • Law No. 6/2005 of 6 July 2005, on the Legal Framework on the Licensing, Supervision 
and Regulation of Insurance Companies and Insurance Intermediaries;  
• Banking and Payments Authority (BPA) Instruction No. 1/2007 on the Licensing of 
General  
• Insurance Companies;  
• BPA Instruction No. 2/2007 on the Licensing of Insurance Intermediaries;  
• Governing Board Resolution No. 8/2007 on the Administrative Fees Schedule applicable 
to Insurance Companies and Insurance Intermediaries; and  
• Public Instruction No. 7/2010 on Compulsory Third Party Liability for Motor Vehicle 
Insurance.  
 
- Supervisory  authority  
 
The CBTL (created by means of Law No. 5/2011 of 15 July 2011, and which succeeded the  Central 
Payments Office "CPO" and the Banking and Payments Authority "BPA") is the  supervisory 
authority for the insurance sector. The CBTL is responsible for, inter alia : 
 
(a) Licensing, supervising and regulating insurance companie s and insurance 
intermediaries;  
(b) Ensuring the protection of the legitimate interests of policyholders and insur ers; 
(c) Defining the standards of conduct for insurance companies and insurance intermediaries 
by means of regulations in the form of instructions; and  
(d) Issuing directives in the form of orders.  
- Permitted e ntities  
 
Insurance activities can only be carried ou t by: 
 
(a) Joint stock  companies  incorporated  in Timor -Leste  (no foreign ownership restrictions 
are imposed); and  
(b) Branches of foreign insurance companies registered in Timor -Leste.  
 
- Licensing procedure  
 
The application for a licen ce to establish an insurance company shall be accompanied by 
the following documents and information:  
(a) The company Founders Agreement;  
(b) Copy of Articles of Association;  
(c) Copy of Shareholders Agreement, where applicable;  
(d) Organic structure and breakdown of  capital and persons concerned;  
(e) Identification of the members of the corporate bodies; and  
(f) Such other documents and information to be defined by CBTL 's instruction deemed 
necessary to  perform supervisory functions.  
When granted, a preliminary approval shal l expire within one year of the date of granting of such 
approval. The definitive approval of an insurance company is contingent on the fulfillment of 
the following requirements:  
(a) Incorporation  of the company  in accordance  with the Companies  Law of Timor -Leste or 
registration of the branch of a co mpany incorporated in a foreign  jurisdiction;  
(b) Subscription and paying -up of the mandatory minimum share capital;  
(c) Preparation of the company 's business plan on the basis of a sound analysis grounded 
on reasonable assumptions;  
(d) Written commitment to abide by the provisions of Law No. 6/2005;  
(e) Adequacy  of the qualifications,  experience,  and integrity  of the members  of the board  
of directors, of the auditing board, and of the company 's key shareholders, as well as 
the persons who have or wish to have relevant interests therein, in view of the business 
plan and the financial activities of the insurance company;  
(f) Minimum registered capital of US$ 500,000;  JOB/ACC/TLS/4  
 
- 128 - 
 
  (g) The board of directors must be composed of a minimum of three me mbers, all of which 
must be residents of Timor -Leste;  
(h) Compliance with all the other conditions with respect governance requirements referred 
to in Chapter VIII of Law No. 6/2005; and  
(i) Other requirements as may be determined by the CBTL by way of an instruct ion aimed 
at guaranteeing compliance with the provisions of Law No. 6/2005.  
The CBTL may refuse to grant a licen ce where it deems that such a licen ce would undermine 
legitimate interests of future policyholders or insurers. A licen ce is valid for an indefi nite period of 
time and may not be transferred. Decisions on the licensing of insurance companies are made by the 
CBTL in an independent and impartial manner.  
- Mandatory i nsurances  
 
Currently, Third Party Motor Vehicle Liability (Public Instruction No. 7/2010) is the only mandatory 
insurance in Timor -Leste.  
- Life, accident and health insurance services  
Life Insurance – Law No. 6/2005 defines life insurance as insurance for one or more persons 
represented by an insurance policy or policie s, where insurance compensation is contingent upon the 
life or death of a certain individual or involves the payment of an annuity. The delivery of savings 
and pension products in connection with the life, death, or disability of an individual is deemed to  be 
life insurance.  
As per Law No. 6/2005 the CBTL shall, by means of an instruction, define the insurance categories 
authorized in the areas of life insurance. However, no such instruction has been published to date. 
Furthermore, and contrary to regulatio ns on non -life insurance companies, no specific instruction on 
the licensing of Life Insurance Companies has been published. According to this law, the same 
insurance company cannot provide classes of insurance business in general insurance (which includes  
all types of insurance, including health insurance, except life insurance, and all other categories  of 
activities  as may be determined  by means  of the CBTL's Instruction)  and life insurance 
simultaneously.  
There are no other relevant legal provisions spec ifically addressing the performance of life insurance 
services.  
- Non-life insurance services  
In Timor -Leste,  non-life insurance  is known  as "General  Insurance " (as opposed  to "Life Insurance "). 
Law No. 6/2005 defines general insurance as all types of insurance, including health insurance, 
except for life insurance and all other categories of activities as may be determined by CBTL´s 
instruction. As per Law No. 6/2005 the CBTL shall, by means of an instruction, define the insurance 
categories authorized  in the areas of general insurance. However, no such instruction has been 
published to date. The specific legal requirements and procedures aimed at licensing General 
Insurance Companies a re laid down in Instruction No.  1/2007.  
Accident Insurance – Law No.  6/2005 defines accident insurance as insurance against the risk of 
damage arising out of a fortuitous event. There are no other relevant legal provisions specifically 
addressing the performance of accident insurance services.  
Health Insurance – Law No. 6/ 2005 defines health insurance as insurance that provides protection 
against financial loss risks arising out of harm caused to a person 's health. There are no other 
relevant legal provisions specifically addressing the performance of health insurance servi ces. 
Besides the foregoing, there are no other relevant legal provisions specifically addressing 
the performance of general insurance services.  
- Reinsurance and r etrocession  
Law No. 6/2005 defines Reinsurance as the financial protection provided by an ins urance company 
to another insurance company. There are no provisions in respect of retrocession or other relevant 
legal provisions specifically addressing  the performance of reinsurance  services.  JOB/ACC/TLS/4  
 
- 129 - 
 
  Services Auxiliary to Insurance (Including Broker and Agency  Services)  
- Permitted e ntities  
 
Insurance intermediaries must be licensed by, and registered with, the CBTL. The activity of 
insurance intermediation in Timor -Leste is reserved to:  
(a) Agents;  
(b) Sub-agents; and , 
(c) Brokers.  
 
Agents – As per Article 20 of Law No. 6/2005, the role of an agent is to sell insurance products and 
services adequate for the needs of policyholders and insured, in representation of an insurance 
company, against the payment of a commission, a fixed salary, or a combination of both, by 
the latter. The relationship between the agent and the insurance company shall be governed by 
a written contract, which shall establish the specific powers of the agent and expressly define 
the acts to be  performed by the agent for whom the insurance company  assumes responsibility. As 
per the applicable law, agents are prohibited from acting on behalf of more than one insurance 
company. As per the combined provisions of Article 11.2 of Law No. 6/2005 and Article 4.1 of 
Instruction No. 2/2007, agents may be na tural or legal persons with minimum registered capital of 
US$ 5,000.  
Sub-agents – Subagents act on behalf insurance agents and are prohibited from acting on behalf of 
more than one insurance agent. Subagents shall, on a yearly basis, submit to the CBTL a w ritten 
confirmation of the insurance agent on whose behalf they are authorized to act. Subagents are 
remunerated in the form of a commission or fixed salary, or both, by the insurance agents they 
represent. As per the combined provisions of Article 11.2 of  Law No. 6/2005 and Article 4.1 of 
Instruction No. 2/2007, sub -agents may be natural or legal persons with minimum registered capital 
of US$ 5,000.  
Brokers – In accordance with Article 21 of Law No. 6/2005, insurance brokers are required to obtain 
the most  adequate insurance policy for the needs of the policyholders or insured. Brokers are 
remunerated in the form of a commission by the insurance company whose insurance policy they 
have sold. Brokers are obliged to keep an up -to-date list of the insurance co mpanies on whose behalf 
they are authorized to act, and that list may, at all times, be examined by the CBTL. As per 
Article  11.3 of Law No. 6/2005, insurance brokers shall take on the form of a company with a share 
capital above of US$25,000. The existing  legislation, notably Law No. 6/2005 and Instruction 
No. 2/2007, only sets forth the licensing and registration requirements of each type of insurance 
intermediaries.  
Banking and Other Financial Services (Excluding Insurance)  
With exception of a few statut es, mostly regulations issued by the CBTL, the applicable legal 
framework is still governed by the legislation and regulatory rules and regulations created by 
the UNTAET, which held the legislative and executive powers in the territory of Timor -Leste during 
the transition period to the independence from the Republic of Indon esia (25 October, 1999 – 
19 May 2002).  
Timor -Leste 's legal framework is based on the universal banking model, under which there is no 
mandatory  segregation between banki ng (such as deposit -taking and lending) and securities 
transactions, i.e. between commercial and investment banking.  
- Regulator  
 
The banking and financial sector is supervised by the CBTL. As a corollary of the aforesaid 
supervision  duties,  CBTL is respon sible for regulating,  licensing,  and registering  banking  and 
financial institutions in the country (including local branches of foreign banking  and financial 
institutions), as well as for monitoring compliance with the applicable legal framework  and enforcing 
any fines and penalties in case of any breach thereof. CBTL is empowered to issue regulations and 
instructions on prudential and supervisory ma tters.  
 JOB/ACC/TLS/4  
 
- 130 - 
 
  - Permission to operate  
One of the main principles of the regulatory framework is that only financial institutions duly licen ced 
by, and registered with, the CBTL are allowed to engage  directly in any financial activity in 
Timor -Leste. In order to be granted  the required licen ce, banking and  financial institutions must be  
organized under the laws of Timor -Leste, i.e. , through a locally incorporated company or a branch 
of a foreign financial institution registered in the country.  
In Timor -Leste, there are three classifications of banking licen ces that the law designates : A, B, and 
C. Such classifications of licen ces are  directly related to the scope of activities that the holder of 
the given licen ce is allowed to perform in Timor -Leste, as per Section 24 of the Regulation.  
- Capital requirements  
As per Section  4.1 of the Regulation,  the CBTL is responsible  for establishi ng the minimum regulatory 
capital for licen sed banks, which shall not be less than the equivalent of US$ 2,000,000. The CBTL 
may increase the minimum capital requirements from time to time by instruction.  
In accordance with Instruction CPO/B -2000/1, on Applications for Bank Licen ces, the minimum 
regulatory capital depends on the classification of the banking licen ce. Currently, the minimum 
amount required for level A is US$ 6,000,000, for level B US$ 4,000, 000 and for level C 
US$ 2,000,000.  As per Instruction CPO/B -2000/2 on Regulatory Capital, the minimum capital 
adequacy ratio of banks organized in Timor -Leste is 12 percent, irrespective of the type of licen ce. 
- Key issues  
 
Regulation on bank licensing and supervision  
 
UNTAET Regulation No. 2000/8 on Bank Licensing and Supervision (the "Regulation ") is the main 
statute of the banking and financial sector of Timor -Leste. The Regulation sets forth the main rules 
and principles (which, in certain cases, are further developed by specific instructions  issued by 
the regulator) of the whole banking and fin ancial system. The Regulation deals with a variety of 
aspects relevant for banking institutions, including, amongst others (i) application, issuance, and 
cancelation of banking licen ces; (ii) corporate governance; (iii) professional secrecy; (iv) permitted  
financial activities; (v) recordkeeping rules; (vi) auditing; (vii) reports and inspection; 
(viii) infractions, penalties, and remedial measures; and , (ix) insolvency. The Regulation also 
provides for provisions applicable to shareholders, directors, agents and employees of 
banking  institutions.  
CBTL's instruction on the credit registry information system  
 
In 2009, the CBTL created the Credit Registry Information System (as per Instruction No. 3/2009) 
in Timor -Leste with the purpose to provide banking and financial institutions operating in the country 
with information relating to existing and prospective borrowers' credit at other banking and financial 
institutions. This system has been seen by the local market players as a vital instrument for risk 
assess ment purposes. The participating entities are required to submit detailed data to the Credit 
Registry Information System related to each credit granted, such as (i) the borrower's details; 
(ii) amount of credit granted; and , (iii) type of collateral (if an y). 
Regulator's instructions, rules and guidelines  
 
Although many aspects relevant for the performance of banking and financial activities are still 
unregulated in Timor -Leste (especially when compared with more developed jurisdictions), there are 
several regulations that have already been approved by the regulator through the issuance of 
instructions, rules, and guidelines.  
The main instructions so far approved cover a range of issues typically addressed by financial 
regulators of other countries, includin g, (i) capital and liquidity requirements, (ii) qualifications of 
directors, (iii) credit exposures, (iv) transactions with related person, banks, and affiliates, (v) loans 
to employees; (vi) reporting and public disclosure duties; (vii); auditing; (viii) equity investment; 
(ix) asset classification; (x) internal control system; (xi) investment in real estate; and , 
(xii) recordkeeping.  JOB/ACC/TLS/4  
 
- 131 - 
 
  In February 2013, the CBTL issued Guidelines for the Licensing and Operations of Money Transfer 
Operators to encourage the sound and efficient growth of remittance services in the economy and 
to reduce the risk of Money Transfer Operators (MTOs) in Timor -Leste becoming vehicles for/or 
victims of financial crime and suffering the consequential damages. Furthermore, in February 2015, 
the CBTL issued Guidelines on the Use of Agents in Branchless Banking. These Guidelines apply to 
(i) all Banks l icensed under the Regulation  (ii) Other Deposit Taking Institutions (ODTIs); and , 
(iii) individuals and other entities providing Agent Banking services.  
Product specific legislation  
 
With the exception of a few specific rules applicable to credit lending and the opening and 
maintenance of bank accounts/deposits, there is no banking/financial product -specific legislation yet 
in Timor -Leste. This means that, as a rule, products offered by banking and financial institutions are 
only bound by the rules on contracts provided for in the general law, notably the CC of Timor -Leste.  
Enforcement and i nvestigation  
 
The Regulation  empowers  CBTL to take actions  and impose  penalties  (as described  in the applicable 
law) against a financial institution, its directors, and principal shareholders in breach of 
(i) a regulatory provision; (ii) restriction or provision of an authorization issued by CBTL; and, 
(iii) any provision of an enforcement agreement entered into between the financial institution in 
question and the CBTL.  
Whenever a financial institution (or any of its directors or main shareholders) is deemed to have 
breached any of the regulatory rules, CBTL may, inter alia, (i) issue written warnings; (ii) execute 
an enforcement agreement with the board of directors providing for a program of remedial action(s); 
(iii) issue written orders to cease infractions and to u ndertake remedial a ctions; (iv)  impose fines; 
(v) suspend temporarily or dismiss directors; and , (vi) revoke the banking  licence. 
Complaints and r edress  
 
There are no specific rules on complaints and redress in Timor -Leste. In practical terms, however, 
consumers may address their complaints against banking institutions to CBTL, which then notifies 
the bank to provide information and share its views on the case. Upon completion of the investigation 
procedures, CBTL may simply close the file (if it finds that the financial inst itution complied with 
the applicable law and, therefore, the consumer had no legal grounds for complaint) or, if the 
complaint is upheld by the CBTL, issue a written order to the financial institution to undertake 
remedial action(s), which may include redr ess or compensation.  
- Creditor h ierarchy  
 
Insolvency  
 
Pursuant to the Regulation, upon liquidation of a bank's assets, the secured claims shall be paid to 
the extent of the realization of the security or, alternatively, the security shall be delivered to 
the secured creditor.  
The proceeds of other claims shall be paid in priority to all other debts, in the following order:  
(a) Necessary  and reasonable  expenses  incurred  by the receiver  and the CBTL,  including 
professional fees;  
(b) Deposits up to an amount not exceeding 10 tim es the average monthly wage 
per depositor;  
(c) The amount not paid to deposits under (b) above;  
(d) Other claims of creditors against the bank.  
If the amount available for payment for any class of claims listed above is insufficient to provide 
payment in full, such claims shall be paid in equal proportions. After payment of all claims filed, any 
remaining accepted claims that were not filed within the time specified by instruction of the CBTL 
for the filing shall be paid. Any proceeds remaining aft er all claims of depositors and other creditors 
have been paid shall be distributed among the shareholders of the bank in accordance with their 
rights and interests.  JOB/ACC/TLS/4  
 
- 132 - 
 
  Banking r esolution  
 
If CBTL determines that a bank is insolvent or must reasonably be expe cted to become insolvent 
within the next 90 days, the CBTL must take possession and control of that bank through a receiver. 
Under the law, the receiver may, inter alia , (a) continu e any operations other than (i)  deposit taking 
and (ii) credit lending to n ew customers; (b) discontinue  any operations; (c)  borrow money on an 
unsecured basis and; if not possible, on the security of assets of the bank; (d) cease or limit 
the payment of any obligation; (e) employ or dismiss any director, employee or professional advisor; 
(f) execute any instrument in the name of the bank, and , (g) initiate or defend and conduct in its 
name in any action or legal proceeding.  
- Bank secrecy  
 
Pursuant to the Regulation the former and present directors, employees, and age nts of banking and 
financial institutions shall keep secret all issues regarding the financial institution's activity and 
clients. The information subject to bank secrecy includes, but is not limited to, customers' account 
balances, amounts, conditions, an d use of proceeds of banks loans, customers' business 
relationships, and recipients and amounts of payments made by the bank. The secret information 
may only be disclosed to (i) the CBTL (including its inspectors and the auditors appointed by it), 
(ii) external auditors of the banking institution, ( iii) judicial authorities,  and, (iv) foreign bank 
supervisory authorities, and , (v) when the disclosure is required for protecting the bank's interest 
in legal proceedings.  
- Financial promotion  
 
The laws and regulations  of Timor -Leste  do not regulate  financial  marketing  and promotional 
activities or provide for a definition thereof.  
- Market a buse 
 
The Regulation sets forth the principle pursuant to which banks shall refrain from entering into 
transactions or engaging in practices of any kind that would provide them, alone or together with 
others, a position of dominance on the money, capital, or foreign exchange markets. In accordance 
with said Regulation, banks shall also refrain from engaging  in manipulative devises or practices 
that could result in an unfair advantage for themselves or for third parties. In addition, banks shall 
not require any person to contract to receive any financial service or products from an affiliate as 
a condition of  being permitted to contract with the bank itself.  
- Corporate g overnance  
 
Pursuant to the Regulation, banks shall be managed by a governing board and shall have an audit 
committee. Banks are required to have a risk management committee or separate credit and asset 
and liability management committees. The governing board of a bank shall have an uneven number 
of members with a minimum of three and a maximum of seven.  
- Remuneration and b onuses  
 
Pursuant to Instruction CPO/B -2001/9 on Remuneration of Members of the Governing Board and of 
Senior Management of Newly Licen ced Banks, the remuneration of the governing board and senior 
management of a newly incorporated banking institution is subject to prior approval of the CBTL for 
the first three years of the ban k's operations.  In general terms, CBTL shall not approve the proposed 
remuneration of the members of the governing board and the senior management if it includes, 
inter alia, (i) the ability to acquire a different class of shares of the bank with greater v oting rights 
in comparison with the voting rights attached to other classes of shares; (ii) the ability to acquire 
shares of the bank at an original issue price lower than the price paid by other investors; or , (iii) the 
proposed remuneration raises any ot her supervisory concerns.  
Also, the proposed remuneration shall not be approved by the CBTL if it (i) is expected to adversely 
affect the bank's future earnings prospects or financial condition; or , (ii) is not in line with 
the person's experience and competence. In the specific case of the members of the governing 
board, the CBTL shall also not approve the proposed remuneration of it (i) is not based on meetings 
attended; (ii) exceeds the salary of the senior management of the bank; or , (iii) includes bonuses.  JOB/ACC/TLS/4  
 
- 133 - 
 
  Regarding senior management, the remuneration (i) shall be in line with remuneration paid to 
individuals in similar positions with similar qualifications at banks engaging in similar financial 
activities; and (ii) shall not include incentive compensations which are not linked to the bank's 
long-term business strategy and its overall financial condition of the bank. Remuneration linked to 
volume, short -term performance or profitability, or excessive risk -taking, shall not be approved by 
the CBTL.  
- Acceptance of deposits and other repayable funds from the public  
In accordance with the applicable Regulation and auxiliary legislation, currently there are two types 
of institutions entitled to accept deposits and other repayable funds from  the public, as follows:  
(a) Banks; and , 
(b) Other deposit -taking Institutions (ODTIs) as licen sed in accordance with Instruction 
No. 6/2010.  
The opening and maintenance of bank accounts/deposits are no t yet highly regulated in Timor -Leste. 
The relevant agreements  are mainly subject to the few rules provided for in:  
(a) Instruction No. 03/2003, on the Opening and Maintenance of Deposit Accounts – which 
refers to the mandatory documents and information to be provided under a Bank 
Account Agreement; and  
(b) Instruction No. C PO/B-2001/3, on the Notification of Terms and Conditions of Deposits 
and Credits – which addresses the mandatory information Banks must provide to its 
customers in respect of the terms and conditions applicable to services rendered under 
a bank deposit  agreement.  
The CBTL is working on a new regulatory framework on the opening and maintenance of bank 
accounts aimed at reinforcing customers ' rights. The new framework is expected to enter into force 
on 1 January 2016.  
- Lending of all types,  including,  inter alia,  consumer  credit,  mortgage  credit, factoring, and financing 
of commercial transactions  
 
There is no legislation that specifically ad dresses different types of lending, therefore,  the below  
comments  apply  to any type of lending,  i.e., regardless  of whether  the underlying transaction is 
consumer credit, mortgage credit, factoring, or financing of commercial transaction.  
- Loan agreement format  
There is no standard loan agreement format in Timor -Leste. The CC of Timor -Leste, as approved by 
Law No. 10/2011 of 14 September 2011, sets forth the general principle of "contractual freedom, " 
according to which parties may, subject to an y applicable statutory limits, freely establish 
the contents of contracts, and also enter into contracts different from the types expressly provided 
for in law (Article 340 of the CC). Thus, the main principle is that the terms and conditions of a loan 
agreement can be freely agreed by the parties provided, however, the purpose of the financing must 
not be contrary to public order or ethical principles (Article 271 of the CC).  
- Mandatory c lauses  
 
Under Instruction on Credit Documentation (Instruction No. CPO CPO/B -2001/8), credit agreements 
shall contain, at least, the following elements: (i) the date and principal amount of the credit; 
(ii) the purpose of the credit; (iii) the interest rate; (iv) repayment schedule, including the maturity  
date; (v) other terms and conditions of the credit; (vi) description of any collateral and the legal 
right to the collateral in the event of the borrower 's default; (vii) any insurance required to be 
contracted by the borrower; and , (viii) date(s) on whic h the credit amounts will be made available 
to the borrower.  
- Form of loan agreements  
 
As per Decree -Law No. 45/2012 of 21 November 2012, on the Form of Loan Agreements, loan 
agreements entered into by banking institutions organized in Timor -Leste may be executed by 
a private written document.  JOB/ACC/TLS/4  
 
- 134 - 
 
  - Governing l aw 
 
The CC contains a number of rules on choice of law and conflict of law issues that must be taken 
into account when reviewing a loan. Article 40 of the CC determines that the parties may freely 
choose  the law governing their agreements provided that such choice of law corresponds to a serious 
interest of the parties or has a connection with an element of the contract that is relevant for 
purposes of international private law ( e.g., law of the residence , head offices, or place of business 
of one of the parties; law of the place where the contract will be performed; law of the place where 
the contract will be executed; law of the location of any immovable property).  
Based on the foregoing, and as a matter  of principle, loan agreements to be entered into between 
banks and its customers in Timor -Leste should be governed by Timor -Leste 's law, unless the nature 
of the elements of the specific transaction justifies the choice of a foreign law. Under Timor -Leste 's 
law, local courts will not accept a foreign law chosen by the parties if it involves a breach of 
a fundamental principle of public order, or mandatory provisions of the applicable local laws. Articles 
20 and 21 of the CC state that (i) the choice of law  is deemed irrelevant if such choice arises from 
a fraudulent intention to avoid the application of the law, which, in other circumstances would apply; 
and (ii) provisions of foreign law are not applicable if they breach the fundamental principles of 
public order of Timor -Leste. However, there is no statutory definition of domestic or international 
public  order. This means that the contents of such a concept will be determined by the judge on 
a case-by- case basis. Some examples of public policy principles and mandatory rules include formal 
loan agreement requirements, rules on collateral, interest -related rules, and minimum requirements 
of loan agreements.  
- Interest r ate 
 
The CC sets forth limits for charging interest on a loan. Pursuant to Article 1066 of the CC, an agreed 
interest rate cannot exceed the statutory interest rate plus 3% if the loan is secured in rem, or 5% 
if the loan is unsecured in rem. The default interest rate cannot exceed the statutory interest rate 
plus 7% if the agreement is secured in rem, or 9% if the agreement is unsecured in rem. Any interest 
rate in excess of the above limits is deemed usurious and null and void. In effect, the provision of 
Article  1066 of the CC is not applicable, as the government has not yet approved a  statutory interest 
rate. Notwithstanding, the agreed interest rate should not breach the principle of good faith by 
creating an  excessive and unjustified advantage to the lender, considering the specific circumstances 
of the market and the loan (Articles 273 to 275 of the CC).  
- Financial leasing  
 
In accordance with Section 24.3 (d) of the Regulation, Class A and B Banks are entitled to provide 
financial leasing services. There are no other relevant legal provisions specifically addressing 
the performance of financial leasing services.  
- All payment and money transmission services  
In accordance with Decree -Law No. 17/2015 of 24 June 2015, on the National Payments System, 
"Payment Services" include:  
(a) Services providing for the deposit and withdrawal of cash;  
(b) Execution of payments;  
(c) Issuance or purcha se of payment instruments;  
(d) Provision of funds transfer services, and  
(e) Any other money transfer ancillary services that also involve the issuing of electronic money 
and electronic money instruments (but excludin g the provision of internet or communications  
services or network access).  
In accordance with Article 7 of Decree -Law No. 17/2015, no individual or corporate body may provide 
payment services or operate one of the Systems (which include Payment, Clearing, or Settlement 
System) without being duly authorized by the CBTL.  
As per Section 24.2 of the Regulation, a banking licen ce entails:  
(a) Payment and collection services; and  JOB/ACC/TLS/4  
 
- 135 - 
 
  (b) Issuance and management of means of payment (including payment cards, travelers' checks  
and bankers' drafts).  
- Guarantees and c ommitments  
 
There  are no other  relevant  legal provisions  specifically  addressing  the provision  of bank 
guarantees or similar commitments.  
- Trading for own account or for account of customers  
Trading for own account or for account of customers, whether on an exchange, in 
an over- the- counter market, or otherwise, the following:  
a. Money  market instruments (checks, bills,   81339**    
 certificate of deposits, etc.)   
b. Foreign exchange   81333     
c. Derivati ve products including, but not limited to,   81339**    
 futures and options  
d. Exchange  rate and interest rate instruments,   81339**  
  
 including products such as swaps and forward rate agreements  
e. Transferable securities   81321*    
f. Other negotiable instruments and financial   81339**    
 assets, including bullion  
 
In accordance with Section 24 of the Regulation, banks are entitled to:  
(a) Buy and sell foreign exchange for cash for the account of a customer;  
(b) Borrow funds and buy and sell for a bank's own account or for the account of customers 
(excluding  underwriting)  of: (i) money  market  instruments  (including,  checks,  bills of 
exchange and certificates of deposit); (ii) debt securities; (iii) futures and options 
relating to debt  securities or interest rates; or (iv) interest rate instruments (only Class 
A and B Banks).  
There are no other relevant  legal provisions specifically addressing the services related with trading 
for own account or for account of customers.  
- Participation issues of all kinds of securities, including underwriting and placement as agent 
(whether publicly or privately) and provision of service related to such issues  
As per Section 24.4 of the Regulation, only Class A Banks are entitled to provide  services in 
connection with underwriting and distribution of debt and equity securities and dealing with equity 
securities. There are no other relevant legal provisions specifically addressing the services related 
with trading for one 's own account or for  the account of customers.  
Instruction CPO/B -2001/2 on Equity Investments of Banks, sets forth that no bank shall hold 
(directly or indirectly) an equity interest in an entity engaged in activities other than financial 
activities that: (i) represents a sig nificant interest; (ii) or exceeds its net current value, 
the equivalent of 15% of the regulatory capital of the bank; or (iii) when the aggregate net current 
value of all of its equity interests in such entity exceeds the equivalent of 100% of the regulat ory 
capital of the bank, without obtaining prior written authorization from CBTL. Furthermore, banks are 
not allowed to hold (directly or indirectly) equity securities of a bank organized in Timor -Leste.  
Finally, the above mentioned limitations and restric tions do not apply to (i) equity interests that 
have been acquired by a bank in lieu of repayment of credit granted by such bank (which can cannot 
exceed one year from the date they are acquired or within such longer time period as the CBTL may 
approve in response to a written request by the bank) and (ii) equity interests held by the bank as 
an agent in securities undertaking or brokerage or investment portfolio management.  JOB/ACC/TLS/4  
 
- 136 - 
 
  - Money b roking  
 
In accordance with Section 24.3 (c) of the Regulation, Class A and B Banks are entitled to provide 
money broking services.  There are no other relevant legal provisions specifically addressing 
the performance of money broking services.  
- Asset management such as cash or portfolio management, all forms of collective inv estment 
management, pension fund management, custodial depository and trust services  
In accordance with Section 24.4 (a) and (b) of the Regulation, only Class A Banks are entitled to 
provide (i) trust services, including the investment and administration o f funds received in trust and 
administration of securities; and (b) provide services as an investment portfolio manager or 
investment adviser.  There are no other relevant legal provisions specifically addressing 
the performance of such services.  
- Settleme nt and clearing services for financial assets, including securities, derivative products, and 
other negotiable instruments  
According to Law  No. 5/2011,  the CBTL is responsible  for the licensing,  registration,  and supervision 
of clearing, payment and securities settlement systems. The same rule flows from Decree -Law 
No. 17/2015 of 24 June 2015, on the National Payments System, pursuant to which banks are 
required to obtain authorization from the CBTL to operate Payment, Clearing, and Settlement 
Systems . 
As per Article 9.1 of Decree -Law No. 17/2015, all system operators shall lay down written rules 
covering the administration, management, and operation of the systems they operate. Such rules 
shall cover, at least, (i) liquidity management, (ii) credit ri sk and settlement, (iii) rules on when 
a payment instruction and settlement are final, (iv) governance and access, (v) emergencies and 
operational risk, (vi) rights and duties of system participants and operators. However, no legal 
provisions have yet been  approved specifically addressing the performance of services such as 
settlement and clearing services for financial assets, including securities, derivative products, and 
other negotiable instruments.  
- Advisory and other auxiliary financial services on a ll the activities listed in article 1b of 
MTN/TNC/W/50, including credit reference and analysis, investment and portfolio research and 
advice, advice on acquisitions and corporate restructuring and  strategy  
As per Section 24.3 of the Regulation, Class A an d B Banks are entitled to provide services as 
a financial agent or consultant, except with respect to investment advisory services, which can only 
be performed by Class A Banks. There are no other relevant legal provisions specifically addressing 
the perfo rmance of advisory and other auxiliary financial services.  
Health Related a nd Social Services  
Hospital  services  
Decree -Law No. 18/2004 of 1 December 2004, on Private Health Services establishes the rules 
on licensing of private hospitals. This statute does not contain any requirements as to nationality 
of the investors or responsible persons. Notwithstanding, the rules on licensing/accreditation of 
health professionals must also be followed.  
Other Human Health Services (other than 93191)   
Decree -Law No. 18/2004 of 1 December 2004, on Private Health Services establishes the rules 
on licensing of private health services, including clinics, dental clinics, etc. This statute does not 
contain any requirements as to nationality of the investors o r responsible persons. 
Notwithstanding, the rules on licensing/accreditation of health professionals must also be 
followed.  
 
 JOB/ACC/TLS/4  
 
- 137 - 
 
  Tourism and Travel Related Services  
Timor -Leste has not passed any laws specifically regulating tourism and travel -related service s. 
Notwithstanding , Decree -Law No. 24/2014 of 3 September 2014 sets forth the general 
framework  for a tourism policy in Timor -Leste, which includes the general principles to be applied 
to the sector.  
Hotels and restaurants (including catering)  
Regarding re staurants, Decree -Law No. 7/2009 of 15 January 2009, regulates the licensing 
procedure and the activity of restaurants and similar establishments serving food and  beverages , 
such as bars, nightclubs and traditional food and beverages establishments. The st atute also 
establishes the specific requirements in order to obtain a licen ce. Prior to the attribution of 
a licence the establishment is subject to inspection.  
Recreational, Cultural and Sporting Services  
 
Decree -Law No. 10/2011 of 16 March 2011 sets forth the Legal Framework of Public Utility of 
Sports Federations . Decree -Law No. 18/2014 of 24 July 2014 regulates Sport Clubs and 
Companies. Decree -Law No. 6/2009 provides for the Regulation of Recreational an d Social 
Gambling  and includes the applicable licensing requirements.  
Transport services  
Maritime transport services  
 
Timor -Leste has not passed any specific laws regulating maritime transport services. However, 
the Ministry of Public Works, Transports an d Communications is drafting regulations  for these 
services with the assistance of the German Institute  for International Cooperation,  GIZ. 
Air transport services  
 
This sector is under the supervision of Timor -Leste Airports and Air Navigation Administration 
(TLAANA). Timor -Leste has enacted Decree -Law No. 1/2003, of 10 March 2003, which sets forth 
the general legal framework applicable to air transport servi ces. Decree -Law No. 5/2006 of 
1 March  2006, establishes the conditions, requirements, an d legal procedure for attribution of 
certification for commercial air transport companies to carry out their activities. This certificate  is 
granted by TLAANA.  
Road transport services  
 
Decree -Law No. 2/2003 of 10 March 2003 sets forth the general legal fr amework applicable to 
the road transport system, defining its main purposes and general principles. The statute  also 
establishes some rules on private and public transport to be further regulated (note that no other 
laws or regulations have been en acted in respect to this sector).  
Pursuant to Article 15 of Decree -Law No. 2/2003, access to the profession of public road transporter 
is only available to (i) Timor -Leste nationals; (ii) companies in which Timorese nationals hold at 
least a 50% participat ing interest; or (iii) foreigners enjoying the same rights and treatment as 
Timor -Leste nationals. This provision also indicates that an interested person fulfilling one of 
the abovementioned conditions has to be registered with the Road Transporters National Registry, 
which is yet to be established.  
- Passenger transportation  
Article 16 of Decree -Law No. 2/2003 provides that regular urban and local transportation is a  public 
service and may be carried out through the granting of a licen ce or concession by the  Ministry of 
Public Works, Transport and Communications.  Inter-urban passenger transportation may be carried 
out privately, in which case the risk and cost thereof shall be fully borne by the transport companies. 
An authorization from the Ministry of Public Works, Transport and Communications for each route 
operated is also required, as per Article 17 of Decree -Law No. 2/2003.  JOB/ACC/TLS/4  
 
- 138 - 
 
  - Freight transportation  
Article 20 of Decree -Law No. 2/2003 determines that the legal framework to be regulate d shall 
provide for competition and transport safety.  
 
Pipeline transport  
 
Decree -Law No. 20/2008 of 19 June 2008, which created the National Petroleum Authority (NPA), 
and Decree -Law No. 1/2012 of 1 February 2012, on the downstream sector, establish that  pipeline 
transportation of fuels and other petroleum products is subject to licensing by the NPA. Decree -Law 
No. 1/2012 further foresees the approval of more detailed regulations on pipeline transport of 
petroleum products; however, the NPA has yet to approve any such regulations.  
 
- Transportation of fuel s 
 
Decree -Law No. 20/2008 of 19 June 2008, which created the NPA and Decree -Law No. 1/2012, of 1 
February 2012, on the downstream sector, establish that transportation of fuels is subject to 
licensing by the NPA. Decree -Law No. 1/2012 further foresees the approval of more detailed 
regulations on transport of petroleum products; however, to date the NPA has yet to approve any 
such transport regulations.  
 
There are no regulations with respect to services sectors/sub -sectors not mentioned in this Annex.   
 
  JOB/ACC/TLS/4  
 
- 139 - 
 
  ANNEX 21 
Bilateral Agreement s 
AGREEMENTS  DATE OF RATIFICATION  
Agreement with Holy Sea  Parliament Resolution No. 18/11 November  2015 
Portugal – to create the Portuguese Scholl  Parliament Resolution No. 09/ 5 August  2015 
Germany – cooperation agreement  Parliament Resolution No. 5/7 May  2008 
Indonesia – visa exemption for diplomatic 
passports  Parliament Resolution No. 6/ 18 June  2014 
Indonesia  - Traditional border crossing and 
regulated markets  Parliament Resolution No. 21/ 2 May  2009 
Japan – Cooperation agreement on training and 
formation  Parliament Resolution No. 5/26 March  2014 
Spain – Cooperation agreement  Parlia ment Resolution No. 19/14 July 2010 
Australia – Timor Sea Treaty between the 
Government of East Timor and the Government of 
Australia.                        Parliament Resolution No. 2/ 1 April  2003 
Australia – Treaty on Certain Maritime 
Arrangements  Parliament Resolution No. 4/8 March  2007 
Australia – Unitization Agreement  Parliament Resolution No. 5/ 8 March  2007 
Australia – Timor Sea  Parliament Resolution No. 5/08 March  2007 
Brazil – cooperatio n agreement  Parliament Resolution No. 9/11 November  2004 
USA – cooperation agreement  Parliament Resolution No. 2/ 3 January 2003 
Angola – General Agreement on Economic, 
Commercial, Technical, Scientific and Cultural 
Cooperation between the Democratic Republic of 
Timor -Leste and the Republic of Angola  Government Resolution No. 12/05 August  2009 
 
Bilateral Investment Treaties  
COUNTRY  TREATY  
Portugal  Entered into force on 7 April 2004  
Portugal  Agreement Concerning the Encouragement and Reciprocal Protection of Investments, 
approved by Government Resolution No. 2/ 28 January  2004 
Qatar  Signed on 10/08/2005, (not ratified)  
Qatar  Agreement between the Government of the Democratic Republic of Timor -Leste and the 
Governme nt of the State of Qatar for Reciprocal Promotion and Protection of Investments, 
signed on 21 January 2012.  
Kuwait  Agreement Between the Government of the Democratic Republic of Timor -Leste and the 
Government of State of Kuwait for the Promotion and Reciprocal Protection of Investments, 
signed on 1  June 2007 
Kuwait  Trade Co -operation Agreement between the Government of the Democratic Republic of 
Timor -Leste and the Government of the State of Kuwait, signed on 1  June 2007 
Germany  Signed on 21  January  2012, (not ratified)  
Germany  Treaty between the Federal Republic of Germany and the Democratic Republic of Timo r-Leste 
Concerning the Encouragement and Reciprocal Protection of Investments, Gover nment 
Resolution No. 8/  16 March  2011 
Vietnam  Trade Agreem ent between the Government of the Democratic Republic of Timor -Leste and 
the Government of the Socialist Republic of Vietnam, signed on 4  September 2013 
Cambod ia MoU on Economic, Commercial and Technical Cooperation between the Government of the 
Democratic Republic of Timor -Leste and the Government of the Kingdom of Cambodia, signed 
on 5 September 2013 
USA Agreement for Economic and Technical Cooperation between the Government of the United 
States of America and the Government of the Democratic R epublic of Timor -Leste, approved 
by Pa rliament Resolution No. 19/  24 December  2004 
 
 
  JOB/ACC/TLS/4  
 
- 140 - 
 
  ANNEX 22 
State of Play in Timor -Leste's ASEAN Accession  
Internal consolidation  
• Progressive legislative reforms intended to align with ASEAN requirements have been enacted 
since 2015. The VIII Constitutional Government 's work program (2018 -2023) – debated and 
approved by the National Parliament – states the intention to (page 131) 'reinforce relations with 
ASEAN member states and continue to pr omote national reforms that align to ASEAN policies and 
rules'.  
 
• Government Resolution No. 14/2019 states that legislative reforms overseen by the Ministry of 
Legal Reform and Parliamentary Affairs must facilitate ASEAN accession by considering alignment 
with ASEAN requirements.  
 
• The launching of the Timor -Leste ASEAN Mobilisation Program (TLAMP) and the Critical Elements 
for Accession (CEA) in 2019. TLAMP is an ongoing process with long -term objectives towards 
meeting ASEAN requirements, while the CEA con sists of key ASEAN agreements which can be 
implemented within a reasonable timeframe (short - and medium -term objective).  
 
• The establishment of an inter -ministerial working group for the three ASEAN community pillars, 
and the ASEAN Economic Core Team. Sever al in-country and overseas training have been 
provided and will continue to be provided to the member of the working groups.  
 
Bilateral Engagement  
• "Diplomacy Tours " were carried out by the Minister of Foreign Affairs to ASEAN Members States 
(AMS) in 2019 c ontinue until now through virtual meetings and include regular meetings with 
AMS resident ambassadors/representatives in Dili.   
• Appointment of Timor -Leste Permanent Representative to the ASEAN Secretariat in Jakarta to 
facilitate bilateral engagement with AMS both at the political and technical level.   
 
ASEAN Fact -Finding Mission (FFM):  
• In September 2019, ASEAN sent a Fact -Finding Mission to Dili on the Political -Security community 
pillar to assess Timor -Leste's commitment, capacity, and technical readiness  to implement ASEAN 
agreements as well as participate in ASEAN meetings and other relevant activities.  
 
• Due to the COVID -19 pandemic, ASEAN Senior Officials held virtual meetings with relevant line -
ministries and agencies on the Socio -Cultural pillar in October 2020. Likewise, a virtual meeting 
on the Economic pillar took place between 7 -9 December 2020 which assessed in -depth 
the implication of Timor -Leste's accession to ASEAN 's economic agreements, national strategic 
plans, and policy implementation.  
 
Next steps:  
Timor -Leste expects that once these assessments are completed, ASEAN member states and 
the ASEAN Secretariat could help Timor -Leste to accelerate its policy reform and institutional 
development processes by pr oviding a clear roadmap towards membership. AMS and the ASEAN 
Secretariat could further work with Timor -Leste to develop a joint work plan for ASEAN accession.  
 
  JOB/ACC/TLS/4  
 
- 141 - 
 
  ANNEX 23 
Timor -Leste's m embership in the multilateral economic organiza tions, trade -related 
programs of other multilateral organizations  
- Asian Development Bank (ADB);  
- Community of Portuguese Speaking Language Countries (CPLP);  
- Food and Agricultural Organization (FAO);  
- International Bank for Reconstruction and Development (IBRD);  
- International Centre for Settlement of Investment Disputes (ICSID);  
- International Development Association (IDA);  
- International Labour Organization (ILO);  
- International Finance Corporation (IFC);  
- International Monetary Fund (IMF);  
- International Telecommunication Union (ITU);  
- International Court of Justice (ICJ);  
- International Maritime Organization (IMO);  
- Multilateral Investment Guarantee Agency (MIGA);  
- United Nations (UN);  
- United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP);  
- World Customs Organization (WCO);  
- World Health Organization (WHO);  
- World Intellectual Property Organization (WIPO);  
- World Organization for Animal Health (OIE); and, 
- World Tourism Organization.  
 
__________