WT/TPR/M/406/Add.1  
1 June 2021 
(21-4560) Page: 1/126 
Trade Policy Review Body  
17 and 19 March 2021  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  
TRADE POLICY REVIEW  
MONGOLIA  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Harald Aspelund (Iceland)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Mongolia .1 
 
 
Organe d'examen des politiques commerciales  
17 et 19 mars 2021  
EXAMEN DES POLITIQUES COMMERCIALES  
MONGOLIE  
COMPTE RENDU DE LA REUNION  
Addendum  
Président : S.E.  M. Harald Aspelund (Islande)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  la Mongolie .1 
 
 
Órgano de Examen de las Políticas Comerciales  
17 y 19 de marzo de 2021  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
MONGOLIA  
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Harald Aspelund (Islandia)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las pre guntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  
Mongolia .1 
  
 
1 In English and Spanish only ./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/406/Add.1  
 
- 2 - 
 
  Contents  
CANADA  ................................ ................................ ................................ ..........................  3 
CHILE  ................................ ................................ ................................ ............................  18 
CHINA  ................................ ................................ ................................ ...........................  19 
FOLLOW UP QUESTIONS FROM CHINA  ................................ ................................ ..........  33 
EUROPEAN UNION  ................................ ................................ ................................ ........  40 
ICELAND  ................................ ................................ ................................ .......................  73 
INDONESIA  ................................ ................................ ................................ ...................  75 
JAPA N ................................ ................................ ................................ ...........................  81 
KAZAKHSTAN  ................................ ................................ ................................ ................  82 
KOREA, REPUBIC OF  ................................ ................................ ................................ ..... 85 
MALAYSIA  ................................ ................................ ................................ .....................  86 
PERU  ................................ ................................ ................................ .............................  88 
RUSSIAN FEDERATION  ................................ ................................ ................................ .. 89 
THAILAND  ................................ ................................ ................................ ...................  100  
TURKEY  ................................ ................................ ................................ .......................  103  
UNITED KINGDOM  ................................ ................................ ................................ ....... 106  
FOLLOW UP QUESTIONS FROM THE UNITED KINGDOM  ................................ ...............  110  
UNITED STATES  ................................ ................................ ................................ ..........  111  
FOLLOW -UP QUESTION S FROM THE UNITED STATES  ................................ ..................  123  
 
  WT/TPR/M/406/Add.1  
 
- 3 - 
 
  CANADA  
1. QUESTIONS REGARDING THE SECRETARIAT REPORT  
Part I – Economic Environment  
Page 13 (Para 1.5)  
As reported in the secretariat, "in accordance with Article 7 of the Law on the Prevention, Fighting, 
and Social and Economic Development in relation to COVID -19 Infection, promulgated on 29 April 
2020, the Government adopted action plans. Under the plans, the Government imp lemented the 
following actions to sustain the economy: (i) it discussed with the Government of China and 
implemented the Green Gate temporary measure to increase mineral exports; (ii) it increased social 
welfare, including child allowance, from MNT 20,000 to MNT 100,000; and (iii) to support 
enterprises, it delayed social security insurance and personal income tax payments; and introduced 
a tax exemption for certain small - and medium -sized enterprises (SMEs)".  
Question:  
1. Could Mongolia provide examples of t he challenges Mongolian small and medium -sized 
enterprises (SMEs) have faced during the Covid -19 crisis?  
Answer: The COVID -19 pandemic has affected firms of all sizes, but SMEs have been 
particularly vulnerable for several reasons. For example, SMEs are fa cing common 
challenges including decreased sales, job losses, shortage of imported raw materials, loan 
repayment pressures, rent, wages, and current expenses . 
a. Does Mongolia collect data on SMEs disaggregated by sex (e.g. women -owned 
businesses)? If so, cou ld Mongolia provide that data, including the utilization of the 
SME tax exemption? Approximately what percentage of Mongolian SMEs utilized the 
Green Gate temporary measure?  
Answer: Mongolia has not yet begun to classify its SME data by gender.  Micro, small, and 
medium -sized enterprises (MSMEs) are one of the most dynamic sectors in Mongolia. 
However, this sector comprises 77% of total registered business entities and 2.3% of 
total exports.  
Women -owned SMEs in Mongolia (as of 2019)  
No. Ангилал  Тоо 
1 Total number of SMEs  62,263  
2  - Women -owned SMEs from the above /68%/  42,338  
3 Total project number  451 
4 Total investment amount  47,4 billion MNT  
 From the total invesment amount:   
5 Loans provided to the Women -owned SMEs  234 
6 Loan amount provided to the Women -owned SMEs /2019/  37,4 billion MNT  
Part II – Trade and Investment Regimes  
Page 33 (Para 2.45)  
According to the secretariat report, "In 2017, the Public -Private Consultative Committee was 
established under the purview of the Investor Protection Council to provide an avenue for discussing 
investment -related draft legislation and policy documents with  affected parties. A joint decision of 
the Committee is necessary before changes are made in policies or laws. During 2018 -19, the 
Committee met 10 times to discuss a number of issues and receive members' opinions. The main 
elements taken up during these t wo years were the tax agent service legislative package, the draft 
law on SMEs, the Investment Reform Map research report, the draft law on the Agricultural 
Commodity Exchange and related fees, the draft law on permits, and issues related to the draft 
concept of the law on supporting national production and wealth creators".  WT/TPR/M/406/Add.1  
 
- 4 - 
 
  Question:  
2. Could Mongolia provide more information on the draft law on SMEs and related discussions 
conducted by the Public -Private Consultative Committee?  
Answer:  The Law on Promotion of Small and Medium Enterprises was amended in 2019 
and regulates the classification of micro, small and medium enterprises that were not 
reflected in the previous law. The law reflects the rights of the State Administrative Body 
in charge of small and med ium enterprises, therefore the Government Implementing 
Agency, the Small and Medium Enterprises Agency, was created and has been operating 
since October 2020.  
During  the enlarged meeting of the Public -Private Consultative Committee held on March 
15, 2018, the following recommendations were made within the framework of the revised 
draft of the Law on Small and Medium Enterprises.  
• Encourage the interests and participati on of non -governmental organizations and 
professional associations or society .  
• Ensure full transparency and fairness  of government support, loans, concessions 
and tax exemptions  to be provided to SMEs if this is the case.  
• Provide more legal  and financing  support s for start -ups. 
• Rules for small and medium enterprise funds should be more simplified.  
Page 33 (Para 2.47)  
The Secretariat Report refers to tax and non -tax investment incentives offered by Mongolia's Law 
on Investment and other sector legislation.  It also refers to non -tax incentives via 'support for the 
financing of innovation projects.  
Question:  
3. Could Mongolia explain how it defines 'innovation projects'?  
Answer: Article 3.1.1 of the Law on Innovation of Mongolia states that "Innovation means 
products, services, marketing and organizational methods and solutions created as a 
result of the process of transforming new knowledge into wealth".  
Article 3.1.6 states that "Innovation project is a document that is planned to implement a 
set of activities  to introduce innovative products and services to the market in a certain 
period of time in accordance with the financing requirements and organizational 
conditions".  
Article 4.1.2 states that "Innovation projects must be in line with the priorities of 
innovation activities and use the latest scientific and technological advances".  
4. Furthermore, could Mongolia provide examples of the type of financing support that can be 
offered to such projects?  
Answer: In order to support innovation in Mongolia, the Natio nal Development Agency 
and the German Agency for International Cooperation (GIZ) jointly established 
"Innovation support fund for the Small and Medium -sized enterprises", "Innovation 
support fund for the Young Scientists and Start -ups" and "Innovation supp ort fund for the 
Creative Thinking, Media and Digital". As of today , there are about 40 companies that have 
received grants or financial  aid. 
5. Does Mongolia provide, or have plans to provide, similar tax and non -tax incentives for 
projects that improve environmental and social outcomes in the mining and energy sectors?  
Answer: In the energy sector, Mongolia provides tax incentives in renewable e nergy 
technologies. According to Article 38.1.18 of the Law on Customs tariff and custom tax of 
Mongolia and Article clause 13.1.28 of the Law on the Value added tax of Mongolia WT/TPR/M/406/Add.1  
 
- 5 - 
 
  renewable energy research and production equipment, its accessories and spare parts are 
exempted from the customs and value -added taxes, respectively. Government Resolution 
No.198 of 2016, approved the list of equipment, its accessories and spare parts, entitled 
to receive tax incentives.  
Under the Mongolian Investment Law adopted in 2013, tax incentives provided to 
investors, including tax exemptions, tax reliefs, and tax stabilization throughout the life 
of the investment project. In the case of projects of constructing power plants and 
railways in Mongolia, there is a for m of tax incentive that imported machinery and 
equipment are exempted from customs duties during the construction period and 
exemption from value -added tax at the rate of up to zero.  
Page 34 (Para 2.49)  
The Secretariat Report refers to tax incentives offe red by Mongolia that vary depending on the size, 
industry, and location of the investment.  
Question:  
6. Can Mongolia elaborate on its criteria for awarding tax incentives according to the size, 
industry and location of investments?  
Answer: A legal entity h olding a stabilization certificate shall be subject to changes if the 
following tax rates and payments are reduced during the duration of the project 
implemented by the investor in Mongolia. However, in the event of an increase of the 
following tax rates a nd payments, the legal entity holding a stabilization certificate shall 
not be subject to changes because the tax rate is stabilized. These include:  
• Corporate income tax;  
• Customs duties;  
• Value -added tax;  
• Royalties for the use of mineral resources.  
7. Do these  incentives vary for priority (e.g. mining, agriculture, etc. as set out in Page 34, 
Para 2.48) and non -priority sectors, or are they uniform in application?  
Answer: This tax stabilization is legalized for different periods depending on the sector, 
region and amount of investment in Mongolia. In the mining, heavy industry and 
infrastructure sectors:  Investment amount  
/billion MNT /  Stabilization certificate issuance period/in years /  
Investment Period/in 
years/  Region of Ulaanbaatar 
city 
Region of 
Tuv/Govisumber,Dornog
ovi, Dundgovi, Darkhan -
Uul, Umnugovi,Selenge, 
Tuv/  
Region of Khangai  
/Arkhangai, 
Bayankhongor, Bulgan, 
Orkhon, Uvurkhangai, 
Khuvsgul/  
Region of Zuun  
/Dornod,Sukhbaatar, 
Khentii/  
Region of Baruun 
/Bayan -Ulgii, Govi -Altai, 
Zavk han, Uvs, Khovd/  
30-100  5 6 6 7 8 2 
100-300  8 9 9 10 11 3 
300-500  10 11 11 12 13 4 
More than 500  15 16 16 17 18 5 
 WT/TPR/M/406/Add.1  
 
- 6 - 
 
  In other sectors:  
Investment amount /billion MNT /  
Stabilization certificate 
Issuance Period in 
years /  
Investment Period/in 
years/  Region of 
Ulaanbaatar city  
 
Region of 
Tuv/Govisumber,Dor
nogovi, Dundgovi, 
Darkhan -Uul, 
Umnugovi, 
Selenge,Tuv/  
Region of 
Khangai/Arkhangai,
Bayankhongor, 
Bulgan, Orkhon, 
Uvurkhangai, 
Khuvsgul/  
Region of 
Zuun/Dornod,Sukhb
aatar, Khentii/  
Region of 
Baruun/Bayan -Ulgii, 
Govi-Altai, Zavkhan, 
Uvs, Khovd/  
10-30 5-15 4-12 3-10 2-8 5 2 
30-100 15 -50 12-40 10-30 8-25 8 3 
100-200 50 -100 40-80 30-60 25-50 10 4 
More than 
200 More than 
100 More than 80  More than 60  More than 50  15 5 
Part III – Trade Policies and Practices by Measure  
Page 63 (Para 3.68)  
The secretariat report indicates that "The Government is currently implementing the provisions of 
the Mongolian Export Program, pursuant to the Action Plan approved by the Minister of Foreign 
Affairs in 2019. Another initiative is Mongolia's Export Development Project, developed in 
cooperation with the World Bank, that focuses particularly on SMEs. It aims to help non -mining 
sectors strengthen their export capabilities. The Project began in 2016 an d is expected to be finalized 
by 2021. Four main project development indicators that aim to achieve certain targets: (i) increase 
export volumes; (ii) increase the number of firms that obtain internationally recognized quality 
certification; (iii) increase  the number of firms that start exporting following participation in Project 
activities; and (iv) provide export credit insurance products. As at 2020, the first target of increasing 
exports had been met and even exceeded; the other three had not yet been achieved".  
Question:  
8. Could Mongolia provide the targets that were set for each of the four project development 
indicators and sectors that have succeeded the most in increasing their exports?  
Answer: The Export Development Project was restructured in Septe mber 2020 and is 
expected to be finalized by December 2023. Project result indicators are renewed from 
the previous four indicators into six indicators: i) Increase in export volume; ii) Number 
of firms that obtain internationally -recognized quality certif ication; iii) Number of firms 
that start exporting following participation in project activities iv) Number of export credit 
insurance products v) Number of new export destinations vi) Total unemployment 
insurance contribution payments made to non -mining S MEs.  
Yes. It is possible for the target six project development indicators by procuring the right 
employees, implementing effective methods and selecting the right beneficiaries. One out 
of six targets (Total unemployment insurance contribution) have been already 
implemented in 2020.   
Updated results framework shown on the table below.  
9. Does the Export Development Project include programs and/or initiatives focused on under -
represented groups such as women -owned SMEs and entrepreneurs?  
Answer: The project focuses on under -represented groups such as women -owned SMEs 
and the result is monitored under the indicators: ii) Number of firms that obtain WT/TPR/M/406/Add.1  
 
- 7 - 
 
  internationally -recognized quality certification; iii) Number of firms that start exporting 
following participati on in project activities.  
Updated results framework is attached.  
Mongolia - Export 
development project results framework_Attachment.pdf
 
Page 65 (Para 3.76)  
According to the secretariat report, "Special privileges and a development fund for small and 
medium -sized enterprises (SMEs) are in place. The Law on the Support of Small and Medium 
Enterprises and Services was revised in 2019, and outlines government pol icies and support for 
SMEs. In addition to the Small and Medium Enterprise Development Fund (SME Development Fund) 
noted below, the support includes soft loans, loan guarantees, interest subsidies, tax credits and 
exemptions, support through procurement, a nd support to access foreign and domestic markets. 
The SME Development Fund was established in 2009 to support SME expansion in general, and its 
main activities include providing long -term soft loans to SMEs, offering professional advice and 
training, prov iding interest rate subsidies to SMEs that export their products; and providing leased 
equipment bought with state funds to support SMEs. The Action Plan of the Government for 2016 -
20 includes special considerations for SMEs, and supports domestic producti on through tax and 
customs policies. These include discounts on regional taxation, and a 1% income tax and a 90% tax 
credit for SMEs in the food, garment and textile, construction materials, and agriculture and animal 
husbandry sectors. Furthermore, the Na tional Program to Support Small and Medium Enterprises is 
being implemented during 2019 -22, with an emphasis on increasing productivity, market 
competitiveness, and employment of SMEs. It contains a number of provisions for SMEs, such as 
creating access to  preferential financial conditions, improving the legal environment for guarantees 
and insurance, and creating new loan products".  
Question:  
10. Could Mongolia provide additional information on some of the achievements to date for the 
SME Development Fund and the Action Plan of the Government for 2016 -20? 
Answer: Access to finance remains a priority for SMEs. In order to facilitate this access, 
the Government of Mongolia has provided a soft loan of 70.5 billion MNT to the SME Agency 
in 2016 -2020 which has been disbursed to the business owners.  
11. Does Mongolia collect sex -disaggregated data on those companies that received support?  
Answer: Total of 17.3 billion MNT soft loan has been issued to 306 individuals in local area 
(outside of Ulaanbaatar)  
o By number - 25,16% or 77 women  
o By quantity – 23,7% or 4,1 billion MNT  
Total of 29.7 billion MNT soft loan has been issued to 145 individuals in Ulaanbaatar  
o By number - 19.3% or 28 women  
o By quantity – 15,5% or 4,6 billion MNT loan to women -owned businesses  
a. Do women h ave a good success rate in obtaining financing? If so, how does this 
affect their participation in trade?  
Answer: Men and women have equal access to finance in Mongolia, and the SME 
Development Fund in 2009 -2019 has issued approximately  22 percent of its t otal funding 
to women entrepeneurs through soft loan.  WT/TPR/M/406/Add.1  
 
- 8 - 
 
  12. Could Mongolia provide additional information on the type of support it provides to SMEs to 
access foreign markets?  
Answer: The SME Development Program was approved by Decree #156 of the Government 
on April 2019. T he key objectives of this program are to  expand the market of small and 
medium sized enterprises and to support their sales as follows:  
• Support research of domestic and international business opportunities, provide 
information, and develop e-commerce;  
• Provide information and knowledge on marketing of goods and services;  
• Support domestic and international exhibitions and fairs, support participation in 
international trade fairs and business meetings;  
• Organize human resource trainings for targ et SME groups;  
• Support SME clusters and initiatives to join and provide priority support to 
members of such clusters  
13. Could Mongolia describe the mechanism by which the revised Law on the Support of Small 
and Medium Enterprises and Services offers support to SMEs through procurement?  
Answer : Article 8.1.5 of Law on Promotion of Small and Medium Enterprises and Services , 
has been amended in 2019, states that the Government shall offer support to SMEs  
through  its procurement. After the revised Law on the Support of Small and Medium 
Enterprises and Services , the following amendments reflected in the Public Procurement 
Law of Mongolia (PPLM)  to ensure SMEs receive a fair share of participation in public 
procurement:  
i) SMEs receive 15% of domestic preferen ce over other participating bidders in a bid;  
ii) If a SME manufactured a good that is included in the list of domestically 
manufactured goods released by the cabinet, procuring entities are mandated to 
purchase the good directly from that SME without competit ive bidding procedures.  
The PPLM clauses  related to domestic preferences and direct contracting as follows:  
Domestic preferences:  
10.2. In the case of granting a preference to bidders specified in provisions 10.1.1, 10.1.3, 
and 10.1.6 of this law, the bid  price shall be artificially reduced by 10 percent for goods 
with Mongolian origin; if bidders specified in provision 10.1.1 of this law are small and 
medium enterprises specified in provision 5.1 of the Law on Support  of Small and Medium 
Enterprises and S ervices, the bid price shall be artificially reduced by 15 percent for goods 
with Mongolian origin ; and by 7.5 percent for works to be provided by bidders, specified 
in provisions 10.1.2, 10.1.4 and 10.1.7 respectively for comparison with other bidders' 
price, and evaluation.  
Direct contracting:  
34.1.11. if a good, which included in the list of goods shall only be purchased from 
domestic manufacturers specified in provision 101.2 of this law, was manufactured by 
small and medium enterprise specified in provision 5.1 of the Law on Support  of Small and 
Medium Enterprises and Services . 
Page 72 (Para 3.104 -3.106)   
The secretariat report notes the Action Plan of the Government for 20 16-20, National Food Security 
Program, and other programs put in place by Mongolia during the review period, which have resulted 
in new legal acts, policies, and SPS measures.  
Question:  
14. Does Mongolia have any other planned upcoming sanitary and phytosanit ary regulatory 
initiatives that will impact agriculture, forestry, or aquatic product imports?  WT/TPR/M/406/Add.1  
 
- 9 - 
 
  Answer: This kind of regulatory initiatives are not planned at the moment.   
Page 76 (Para 3.120)  
The secretariat report describes the Authority for Fair Competit ion and Consumer Protection (AFCCP) 
as performing market studies, including opinions or recommendations on anti -competitive matters. 
The Secretariat Report also describes on Page 75 (Para 3.119) the AFCCP noting that a number of 
Mongolia's natural monopoli es are state -owned enterprises, many of which operate in the energy 
and mining sectors (Table 3.23).  
Question:  
15. Has Mongolia undertaken market studies into the competitiveness of its energy and mining 
sectors, and the role of state -owned -enterprises in thes e sectors?  
Answer: In the mining sector, there are no natural monopoly enterprises as of today. The 
state -owned enterprises that are operating in the mining sectors have a dominant position 
in the respective markets. As the government regulatory agency in charge of supervising 
the implementation of the legislation on competition, applying the competition policy on 
a national level, the AFCCP is monitoring the changes in the market of both sectors. 
Although, the energy sector has its own sector regulatory ag ency which is the Energy 
Regulatory Commission, the AFCCP is also receiving and resolving complaints related to 
the electricity from the public and business entities. The AFCCP has conducted several 
market researches in the both energy and mining sectors i n relation to the assessment of 
the natural monopoly and dominant business entities.  
Page 79 (Paragraph 3.128)  
The secretariat report indicates that "Mongolia is not a signatory to the WTO plurilateral Agreement 
on Government Procurement (GPA). It has been an observer to the Committee on Government 
Procurement since 1999, and plans to conduct an internal survey reg arding whether to join the 
GPA."  
Question:  
16. Has Mongolia conducted this internal survey, and will its results be made publicly available?  
Answer: The subject matter is in the early stage of internal discussion of the Cabinet.  
Part IV – Trade Policies by S ector  
Page 89 (Para 4.10)  
As reported in the secretariat report, "Mongolia plans to increase budget and expenditures on 
agriculture to between 3% and 4% of the state budget; protect domestic production through state 
support and tariff and non -tariff regula tion; and improve exports of agricultural raw materials and 
products through a one -stop-shop policy"  
Question:  
17. Could Mongolia describe what measures supported by additional funds it will use to protect 
its domestic agricultural production?  
Answer: In Febr uary 2021, Mongolia's new government has confirmed the socio -economic 
10 trillion MNT package to strengthen national health and to recover the economy during 
and after COVID -19. The package includes a plan to support and protect its domestic 
agricultural p roduction as a main pillar of its economy. It has planned to budget (1) 100 
billion MNT to support the agricultural cultivation process during spring, (2) 200 billion 
MNT for cashmere preparation processes and (3) 200 billion MNT for discounted credit for 
agricultural production and herders. The loan interest rate for agricultural cultivation 
process, cashmere preparation and herders has estimated to be 3 percent per year. The WT/TPR/M/406/Add.1  
 
- 10 - 
 
  loan for agricultural cultivation proce ss and  cashmere preparation have planned to 
continue for one -year period and the loan for herders has planned to continue for 3 -year 
period.  
18. Could Mongolia elaborate on its use of tariff and non -tariff regulations to protect its 
agriculture sector?  
Answer:  Mongolia implements various programs and activities in the agriculture sector to 
improve competitiveness and value addition of the agriculture products. It supports the 
sector through conducting market access research and development for agricultural 
prod ucts, improving the marketing strategy of firms in the sector, and offering tax 
incentives and rebates etc. Non -tariff measures, including an import licensing regime, are 
in place to protect its agriculture sector. Recently, the Government of Mongolia appr oved 
the Safeguard Regulation on 27th of January 2021 in compliance with the WTO rules and 
procedures. Upon completion of the domestic administrative procedure, the Ministry of 
Foreign Affairs will take necessary actions to notify the members about the reg ulation. 
Mongolia is also planning to develop legislation concerning anti -dumping measures to 
protect its agriculture sector.  
Page 92 -93, (Para 4.15)  
As noted in the secretariat report, in 2020, the "Agriculture Support Fund and the Livestock 
Protection F und were the two main funds supporting the sector during the review period; in 2020, 
they were merged into one Agriculture Support Fund"  
Question:  
19. Could Mongolia elaborate on how it plans to ensure transparency in reporting individual 
agricultural activit ies eligible for funding under the new Agriculture Support Fund going 
forward?  
Answer: Agriculture Support Fund is one of the Government's twenty -three special funds 
and it is consistent with the Law of Government Special Fund. According to the Law of 
Gove rnment Special Fund, transparency and reporting procedures are stated on the 
Article 24 and auditing procedure of fund budget expenditure is stated on Article 25. In 
accordance with Article 69 of Budget Law, the expenditure of the special funds 
(Agricultur e Support Fund) shall be monitored and audited by the government. Source: 
Law of Government Special fund.  https://www.legalinfo.mn/law/details/ 14848 . 
Page 93, (Para 4.16)  
As reported in the secretariat report, "Mongolian subsidy measures take various forms, such as 
price-support mechanisms, soft loans, and output -based direct payments. A number of studies 
examined the various agricultural subsidies and suggested that more c ould be done to use less 
distorting subsidization methods that can be harmful to markets. Some concrete suggestions include 
rationalizing the agricultural subsidy programmes to help resolve inconsistencies and overlap; as an 
alternative to subsidization, i mprove research and development, education and training, 
infrastructure development, and inspection and health services; address problems of market 
structure; and adopt a smart subsidies strategy."  
Question:  
20. In light of the findings from the studies ment ioned, could Mongolia elaborate on plans going 
forward to reduce utilization of trade distorting subsidies?  
Answer: The Government is pursuing a policy to promote the country's sustainable 
economic growth through creating a favo urable and stable environme nt for the non -
mining sector, including agriculture, tourism, information technology and energy, and 
implement step -by-step measures to expand its exports. The main objectives of the 
Mongol Export Program, which was approved by the Government in 2018, are to support 
these sectors through conducting research to identify and address problems and develop WT/TPR/M/406/Add.1  
 
- 11 - 
 
  a policy document on State policy on trade, reflecting foreign trade strategies to regulate 
trade distorting measures.  
Page 93, (Para 4.17)  
As reported in th e secretariat report, "A price -support mechanism on wheat has been in place since 
2007, with generally increasing subsidy levels each year. Subsidies are paid when wheat is sold to 
the Crop Fund or domestic flour mills. Between 2005 and 2018, the Crop Prot ection Fund provided 
MNT 157.4 billion in wheat subsidies to 7,500 farmers.21 The price support amounted to 
approximately USD 50 to USD 70 per tonne (MNT 50,000 to MNT 100,000 per tonne) due to 
harvesting and financial capacity. A similar measure applies t o herders of sheep and camels, who 
receive a cash incentive of MNT 1,500 to MNT 2,000/kg (depending on quality) when they sell their 
wool to domestic enterprises. Between 2011 and 2017, MNT 158.5 billion was dispersed to herders 
through this programme. Her ders who delivered raw hides and skins to domestic enterprises for 
leather processing were likewise eligible for a cash incentive of between MNT 3,000 and MNT 15,000 
depending on animal size; this amounted to MNT 33 billion over the period 2013 -16."  
Question:  
21. Could Mongolia confirm whether these amounts have been included in the Mongolia's 
domestic support notifications for the period during which this program is or has been 
operating?  
Answer: Mongolia has submitted the notifications on the above dom estic subsidies for the 
period between 2016 -2017 in May 2018 and the approval by the WTO is pending. 
Additional information has been required by the WTO from the Ministry of Food, 
Agriculture and Light Industry.  
In addition, like many other developing countries, Mongolia faces problems with fulfilling 
its notification obligations of the WTO Agreements. Therefore, Mongolia requested the 
WTO Secretariat to provide technical assistance in developing the capacity of t he 
Government officials in preparing and submitting the required notifications in 2018. Upon 
Mongolia's request, in 2019, the first activity conducted by the WTO was the "National 
Seminar on the Agriculture Notifications" which is one of the priority areas  to be improved 
by Mongolia within the WTO framework. After the seminar, follow -up actions have been 
taken by the MFA to intensify the drafting of agriculture notifications, however, due to the 
spread of COVID -19, the activities are slowed down by the MOFA LI, focusing mostly on 
the urgent issues to reduce and mitigate negative impacts of the pandemic. Notifications 
in other areas are also on the agenda of Mongolia's near planning, although the exact 
timing of the submission of notifications depend on the su fficient number of resources 
and stable Government structure, which are other concerns in Mongolia.  
Page 95 (Para 4.24)  
The secretariat report that "The cashmere industrial sector is divided into four subsectors: integrated 
processing factories, simple pr ocessing factories, SME knitting factories, and household micro 
businesses (Box 4.2). The sector supported 10,000 employees in 2019, of which 90% were women, 
most under the age of 45. In line with promoting more downstream production, the cashmere 
industry  increased capacity in recent years in all areas of processing, i.e. washing, separating, 
spinning, producing textiles, and knitting. In 2019, sales reached MNT 1,300 billion".  
Question:  
22. Could Mongolia further explain what are the jobs performed by women a nd men in this 
sector?  
Answer: Cashmere is herded, processed, spun and made into clothing, the whole 
production process, from goat to coat, is done in Mongolia. Women are the backbone to 
Mongolia's cashmere industry. The Cashmere industry provides income t o over 10,000 
people, 90% of whom are women. Women mainly work in the areas of weaving, knitting, WT/TPR/M/406/Add.1  
 
- 12 - 
 
  spinning, sewing, and quality control, while men mainly work in the maintenance, loading, 
packing, transportation, and upstream processing area.  
23. Could Mongoli a indicate if a gender pay gap has been identified?  
Answer: Mongolia has acceded to the Convention on Equal Remuneration (1969) No 100, 
and the Mongolian Labor Law and the Law on Gender Equality stipulates equal pay for 
equal work for both men and women.  
Although the education level of women is higher than men, as of 2020, the share of women 
(53.4 percent) in the labo ur force participation rate is 16.1 points lower than men (69.4 
percent).  
According to the statistics, as of the first quarter of 2020, wome n are paid 1 143.1 
thousand MNT while men are paid 1 371.6 MNT as monthly average wages.  
The average monthly salary of employees of business entities operating in Mongolia was 
341.5 thousand MNT in 2010 and has been steadily increasing to 1.1 million MNT by 2019. 
Currently, one in four employed workers is paid low -wages. As of 2015, 22.8 percent of 
employed men and 25.2 percent of employed women were paid low wages, while in 2019, 
28.8 percent of men and 39.1 percent of women were paid low wages.  
In 2019, the average monthly salary for men was 19.7 percent (MNT 201.4 thousand) 
higher than the monthly salary for women.  
Source: https://www.1212.mn/tables.aspx?TBL_ID=DT_NSO_0400_025V1 . 
24. Could Mongolia indicate some of the challenges women face when participating in the 
cashmere industrial sector?  
Answer: The cashmere sector is an important sector of Mongolia's economy, supporting 
about a thousand nomadic herders and women employees.  
Mongolian cashmere is globally recognized for its high quality and softness. 
Unfortunately, the v ast majority of Mongolia's cashmere is exported as a raw product at 
a very low price, providing little return for the SMEs. Mongolia is facing a real chance to 
fully integrate its cashmere industry. The majority of production was first -stage 
processing, wi th final product manufacturing only accounting for 10%. The local 
infrastructure is not developed enough to process cashmere into high value. The cashmere 
sector ultimately helps our efforts toward women's economic empowerment.  
Page 116 -123 (Section 4.4.1  Financial Services)  
Based on the section on financial services in the secretariat report, Canada would like to ask the 
following questions:  
25. Are there any foreign equity caps or restrictions in the banking, insurance or securities 
sectors?  
Answer by the M ongolbank: According to the Amendments of the Banking law, the 
ownership concentration will be reduced. The amended law requires each shareholder and 
his/her associates to own no greater than 20 percent of total shares issued by a 
commercial bank. This res triction shall apply to all persons, except as provided by the law, 
to the bridge bank and to the state ownership of recapitalized bank.  
Answer by Financial Regulatory Commission: Insurance:  
The Financial Regulatory Commission shall exercise its right to regulate and supervise 
insurance activities.  WT/TPR/M/406/Add.1  
 
- 13 - 
 
  Article 18 and 22 of the Law on Insurance states that:  
18.1. The following persons are eligible to submit an application  for an insurer's license:  
18.1.1. a company established under the Company Law of Mongolia;  
18.1.2. a company formed under the laws of another jurisdiction;  
22.1. The capital of the insurance company shall consist of cash money contributed by 
shareholder s and its minimum amount shall be determined by the Financial Regulatory 
Commission, taking into account the classification of insurance and the specifics of 
reinsurance.  
It shall be prohibited to accumulate the capital through loans. However, there are n o limits 
on the foreign cash to be used in the capital.  
The insurance company shall develop and follow the internal monitoring program 
specified in Article 14.1 of the Law on Combating Money Laundering and Terrorist 
Financing, and shall prove that the cap ital of the fund consists of legal income. The 
Commission can request additional information, if it considers the company to be 
suspected of money laundering and/or the financing of terrorism.  
The Financial Regulatory Commission shall identify the appropri ate entity in compliance 
with the regulation For Identifying an Appropriate Entity to Perform a Licensed Financial 
and Non -Financial Business, and Professional Activities other than Banking. There are 
three legal entities that need to be identified, namely : 
1.  Applicants, holders of licenses to conduct insurance activities and their authorized 
officials.  
2.  An entity that owns 10 percent or more of the shares of a legal entity, or an entity 
that has  applied for possession, or a person who owns the bulk o f shares, or joint 
ventures.  
3.  If a shareholder is a legal entity, a shareholder who solely owns 10 percent or more 
of its total  shares, and an authorized official deemed necessary by the committee.  
Article 2.2 of the its procedures regulation, states  that if a legal entity belongs to the tax 
exemption zone - so-called offshore - the committee may require additional documents to 
determine the origin of the company's influential shareholders, shareholders, executive 
management and employees.  
Also, there  is a regulation approved by the Financial Regulatory Commission; namely 
Conditions and Requirements for the Activities of Foreign Insurance Intermediaries that 
open Branches of Representative Offices in Mongolia to Conduct Insurance Intermediation 
Activit ies. According to the regulation, an insurance guarantee must be deposited in the 
bank account of any Mongolian bank, and the minimum value of this asset is MNT 1.0 
billion for a foreign insurer and MNT 500.0 million for a foreign insurance intermediary; 
as set out in Article 2.2.3. The equity capital of a foreign insurer applying for the opening 
of a branch or representative office in Mongolia shall be not less than MNT 10.0 billion, 
and the equity capital of a foreign insurance intermediary shall not be l ess than MNT 1.0 
billion, as specified in Article 2.2.6.  
Securities : 
Section 3.1.5 of the Law on Investment of Mongolia states 'A business entity with foreign 
investment' shall mean a business entity incorporated according to the applicable 
legislation in Mongolia and with equity of US $ 100, 000 (or equivalent in MNT) or m ore. 
There are no restrictions on foreign investment under the Law on the Securities Market.  
In addition, Section 2.1.7 of the Regulation on Licensing for the conduct of regulated 
activities in the securities market (approved by the Financial Regulatory C ommission in 
Resolution No. 4 of 2018) states 'at least 70  percent of the employees of a regulated entity 
- with 100 percent foreign investment - shall be Mongolian citizens'. If a foreign citizen or 
business entity conducts regulated activities in the sec urities market of Mongolia, the WT/TPR/M/406/Add.1  
 
- 14 - 
 
  formation of the share capital established by regulation should be in the form of cash. The 
Financial Regulatory Commission shall examine the source of the funds in accordance with 
Law on Combating Money Laundering and Terro rism Financing on the basis of the relevant 
documents and, if necessary, obtain clarification from foreign regulators.  
Pursuant to the Law on Securities Market, and other legislation and regulations approved 
by the FRC, if the investment from a foreign in vestor shall consists of legitimate sources 
and legal entity (such as shareholders, board of directors and members) shall meet the 
requirements of the appropriate entity. There are no stringent regulations which are 
prohibiting in other forms.  
Paragraph 4 3.1 of the Law on Investment Funds stipulates that 'a foreign -registered 
investment fund and its subsidiary shall register with the Commission if it conducts 
investment activities in the territory of Mongolia'. Within this law, the Financial 
Regulatory Com mission shall register and regulate issues related to a foreign -registered 
investment fund to sale its shares and unit rights in the domestic securities market within 
the framework of closed -end and open -end investment fund, and shall ensure the 
transparen cy of information.  
A foreign investment fund has no regulatory restrictions on investing in securities traded 
in the domestic market through an  investment management company, and the origin of 
the assets is the responsibility of a commercial bank, a licens ed investment management 
company, and/or a custodian bank.  
26. If so, what are these caps or restrictions?  
Answer by the Mongolbank: The shares held by any person individually or jointly with a 
related party shall not exceed twenty percent of the total shares issued by a bank.  
Answer by Financial Regulatory Commission: no caps or restrictions.  
2. QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 8 (Para 2.37)  
The Government Report noted that "By its Resolution #278 of 2018, the Government of Mongolia 
launched a "Mongolian Export" Program. The purpose of the Program is to ensure Mongolia's lasting 
economic growth through establishing a favorable and sustainable environment for production and 
export and by step -by-step measures to expand export of non -mining products, to support the 
export of value -added products, to improve the competitiveness of export products, to facilitate 
trade, and to increase market access  to export products."  
Question:  
27. Under the "Mongolian Export Program," has Mongolia implemented any specific programs or 
policies aimed at ensuring growth or increased competitiveness for Mongolian SMEs?  
Answer: In accordance with the Law on Promotion of S mall and Medium Enterprises and 
Services, the National Program for Small and Medium Enterprise Development implements 
export promotion projects which increases awareness and use of other sources of 
financing, leasing and factoring, introducing guarantees a nd insurance for export -
oriented businesses, and aims at one try -one product campaign . 
• "Made in Mongolia" exhibition was organized from February 11th to 15th, 2020, 
and the opening ceremony of "Mongolian Gallery" was organized in New York. 
Representatives of more than 40 research and development organizations, wool 
and cashmere, leather, health and food industries participated in the exhibition 
and had a sale of approximately 44.0 million MNT.  
• Due to the pandemic, "EXPORT MONGOLIA 2020" exhibition was organ ized on a 
digital platform for the first time from December 15th to 16th, 2020. Out of 156 WT/TPR/M/406/Add.1  
 
- 15 - 
 
  companies and citizens who registered their products and services, more than 200 
types of products and services of 43 organizations and enterprises were posted on 
the digital platform in 43 pavilions. The e -pavilion allowed exhibitors to 
communicate and negotiate directly with customers online. 
https://www.expomongolia.org/ . 
a. If so, can Mongolia provide additional information on some of the achievements that 
have occur red since implementing the "Mongolian Export Program" for small and 
medium -sized enterprises (SMEs) including those owned by women and Indigenous 
peoples?  
Examples of achievements on women -owned SMEs.  
MARIS: In the vast lands of Mongolia, where the tradit ional nomadic way of life is still 
preserved, the livestock is pastured freely and peacefully, feasting on most nutritious and 
organic herbs. Due to harsh winter, Mongolian leather is known for its durability and 
strong structure.  
Maris brand was establish ed in 2016 by Mrs. T. Enkhnasan who formed her own company 
the Maris Trade LLC in 2019 in an effort to manufacture value added products from 
Mongolian leather. Currently, the company makes leather bags and leather accessories 
using yak, cow and goat leathe r processed in Mongolia, using environmentally friendly 
"vegetable tanning" technology. If you would like to find more about the company and its 
products, visit website https://www.maris.mn/ . 
Lhamour: The Lhamour, orga nic cosmetic company, started its operation in June 2014 
with four workers by Ms. D. Khulan. She developed the Lhamour brand in 2015 and opened 
the first flagship store in 2016. The company has now 13 workers mostly women. The skin 
care products range 35 p roducts – all organic made from natural ingredients as herbs, 
minerals and oils. For example, the yak milk is the main ingredient in the soap and is 
superior to other milks as it has higher fat content and is rich in protein, vitamin A and 
calcium. It work s as a natural emollient which helps to soothe, moisturize and nourish the 
skin.  
For nursing mothers, the Nipple Care Butter which has sheep tail fat oil is essential for 
dry and cracked nipples. Due to natural ingredients, there is no need to wipe off to  
breastfeed the baby as it is edible and harmless. If you would like to find more about the 
company and its products, visit website https://Lhamour.com  
Page 9 (Para 2.38)  
The Government Report indicates that "In line with the Program's implementation, the Mongolian 
Parliament enacted the Corporate Income Tax Law (new edition, 2019), Law on Support to SME 
Production and Services (new edition, 2019), and Law on Accession to t he Asia -Pacific Trade 
Agreement (2019). The Government of Mongolia declared 2019 as "the Year of Patriotic Purchase" 
and adopted policy documents such as "National Program of SME Support", "List of Priority SMEs", 
"State Policy on Construction for 2019 -2029", "National Program on Development of Manufacturing", 
and "3rd Nation -wide Program for Development of Cooperatives". These laws and policy documents 
set the policy for the growth of production and export of non -mining goods."  
Question:  
28. Could Mongolia in dicate what success it has had with these programs/policies?  
Answer: The legal environment to support small and medium enterprises and services has 
improved. The program aims to maintain and increase the number of jobs in small and 
medium enterprises, incr ease sales from domestic enterprises, improve competitiveness, 
and provide government services electronically, however implementation of the program 
has been insufficient due to the Covid -19 epidemic.  WT/TPR/M/406/Add.1  
 
- 16 - 
 
  29. Moving forward, does Mongolia plan to integrate gender perspectives into other economic 
and trade policies for SMEs, or domestic policies to support women's participation in the 
economy and trade? If so, how do they intend to do this?  
Answer: Gender -sensitive policies are planned for the devel opment of small and medium 
enterprises. Considering gender differences, SME Authority is working to assess the 
impacts of the policy implementation and to take necessary measures to create a 
favourable condition for women entrepreneurs.  
30. Are any women owned  companies on the list of priority SMEs?  
Answer: Total 249 companies received loans from the SME Development Fund. 104 out of 
the 249 were women -owned enterprises.  
31. Are any co -operatives focused on supporting women entrepreneurs or women workers?  
Answer: Currently, there are no specific provisions included to support women 
entrepreneurs in the national co -operative program. Male and female entrepreneurs are 
equally treated.  
32. Does Mongolia have the intention to review these programs to take into account Mongo lia's 
commitment to the Buenos Aires Declaration, to improve women's economic empowerment 
and reduce barriers to international trade for women owned businesses and entrepreneurs?  
Answer: Mongolia is supportive of the Buenos Aires Declaration, to improve wo men's 
economic empowerment and reduce barriers to international trade for women -owned 
businesses and entrepreneurs.  
In addition, the Government of Mongolia convened an International conference on 
"Sustainable Development Goals: Gender and Development" in June 2018 and expressed 
its readiness to take the lead in implementing the "Ulaanbaatar Declaration" to promote 
open and effective cooperation in the following areas:  
1. Promote decent employment opportunities, especially for female heads of 
households, pers ons with disabilities, migrant workers, and other marginalized 
people, through gender -responsive policy planning, budgeting, monitoring and 
evaluation processes; through inter -sectoral coordination at the national, regional 
and international levels; as wel l as by means of sharing experiences on effective 
methods to advance inclusive economic growth.  
2. Develop joint analysis and research to holistically identify and address gender 
inequalities in the economy and in all productive spheres.  
3. Promote flexible wo rk options that recognize the needs of female and male 
employees with family responsibilities and support gender equality in decent 
employment.  
4. Recognize the right to equal pay for women and men for work of equal value.  
5. Establish policies and put in plac e mechanisms to ensure safety and security in the 
workplace for female and male employees, with a focus on zero tolerance for 
gender discrimination and sexual harassment.  
6. Cooperate on addressing adverse gender impacts of national and international 
labour migration, while ensuring and respecting the human rights of migrant 
workers.  
7. Provide support to rural women in their efforts to combat economic 
disempowerment and generate equitable participation in global value chains. This WT/TPR/M/406/Add.1  
 
- 17 - 
 
  should be introduced by means  of promoting gender -sensitive international trade 
policies and by fostering cooperation through results -based monitoring.  
8. Recognize gender -inclusive financial opportunities as an imperative global 
sustainable financing principle and increase women's acce ss to financial resources.  
9. Expand opportunities for women's micro businesses and improve financial credit 
schemes that meet the specific needs of women.  
10. Promote corporate social responsibility initiatives and financing, especially among 
construction, inf rastructure and extractive industries, which respond to poverty 
and promote gender equality and women's empowerment.  
Since 2017, with the adoption of the National Program for Gender Equality 2017, gender -
responsive policy planning processes at the sectora l and local rural levels have been 
gaining momentum. The following nine sectors have been developed sector -specific 
gender -responsive policies in this period:  
- environment sector,  
- the organizations and agencies under the Minister of Finance,  
- law enforcing organizations as integrated,  
- education/science and culture/sport,  
- defense,  
- mining/geology,  
- construction,  
- foreign affairs/trade,  
- labor/population,  
- agriculture and light industry.  
The aimags, capital city and the districts have also deve loped and are implementing their 
gender -responsive local development sub -programmes.  
Sector specific gender policies concern not only human resources and employees of the 
sectors but also gender -responsive impacts of the sector's products and services. 
Therefore, these sector -specific gender -responsive policies are significant for creating an 
enabling mechanism and sustainable structure for coordinating gender -related issues at 
all levels by training capable human resources, improving the understanding and  
realization of gender - equality concept in the sector's policy planning processes as well 
as gender impacts of the sector's products and services.  
  WT/TPR/M/406/Add.1  
 
- 18 - 
 
  CHILE  
WT/TPR/S/406 – Mongolia (Informe de la Secretaría)  
4. TRADE POLICY BY SECTOR.  
4.2. Mining and Energ y 
4.2.1. Mining  
Paragraph 4.50. Page 102.  
"The principles of the legal regime of mining are defined by the 1992 Constitution. Under it, "the 
land and its subsoil shall be subject to the people's authority and under the protection of the State". 
The amendment to the Constitution, approved on 14 November 2019, modified that formulation to 
state that "the land other than in [a] citizen's private ownership, as well as the subsoil with its 
mineral wealth, forests, water resources, and wildlife are state p ublic property".  
Question: Chile requests more information on the effects of the constitutional reform, especially how 
the amendment may affect foreign direct investment projects related to the mining industry and the 
extraction of resources located in the subsoil.  
Answer: According to Article 6.2 of the Constitution of Mongolia, as amended in 2019, "In 
the exploitation of strategically important mineral deposits, in accordance with the 
principle that natural resources are in the hands of the people, the  legal basis for the 
majority of its benefits to the people shall be determined by the law."  
Article 6.3 of the Law on Land states that "Foreign countries, international organizations, 
foreign legal entities, foreign -invested business entities, foreign cit izens and stateless 
persons shall be land users in accordance with the law on the basis of specific purposes, 
terms, and agreements." Article 44.5 of the Law on Land states that "Business entities 
with foreign investment shall be granted land use rights fo r special purposes, terms and 
agreements in accordance with this law, and the agreement term shall be determined by 
the Government."  
Article 12.1.1 of the Investment Law states that "non -tax incentives may be provided to 
investors for possession and use of  land on the basis of agreement for up to 60 years and 
this agreement term shall be extended by up to 40 years at only one time." This indicates 
that Mongolia grants land use rights to foreign investors as part of non -tax incentives.  
Article 5.4 of the Min erals Law states that "If a strategically important mineral deposit is 
explored with state budget and exploited jointly with a privately held company, the state 
participation may be up to 50 percent, and this percentage shall be determined by the 
minerals deposit use agreement taking into account the amount of the state investment. 
The percentage of state ownership set out in the agreement may be replaced by royalties 
for strategically important mineral deposits. "  
Article 5.5 of the Minerals Law states tha t "the state may own up to 34% of the shares of 
the owner of a strategically important mineral deposit that has been explored and 
identified without the participation of the state budget, and this percentage shall be 
determined by the minerals deposit use agreement taking into account the amount of the 
state investment. The percentage of state ownership set out in the agreement may be 
replaced by royalties for strategically important mineral deposits.    
  WT/TPR/M/406/Add.1  
 
- 19 - 
 
  CHINA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 3 ，Para.15  
In 2018, the Government developed the Mongolian Export Program as a policy instrument to support 
research and marketing of priority export products, in particular those outside the mining se ctor. 
 
Question : 
1. Could Mongolia elaborate on the supportive policies provided by the above -mentioned 
Mongolian Export Program in the research and marketing of export products?  
Answer: The Government of Mongolia has successfully collaborated with development 
partners in supporting research and marketing of priority export products. The major 
achievements are drawn in the following:  
"Industry of the Future" a blended training and research center was established in 2020 
at the Food, Agriculture and Light Industry Research and Development Center (FALIRDC) 
under the Ministry of Food, Agriculture and  Light Industry. The training and research 
center serves as the central hub in providing learning environment for food and light 
industry actors, especially for young start -up companies and entrepreneurs.  
FALIRDC in cooperation with the Mongolian Associat ion of Leather Industry conducted 
assessments on improving quality of supply chain systems, especially in livestock raw 
materials such as meat, fibres, hides and skins and by -products.  
Textile Incubator Center was established in 2019 at the Research and D evelopment 
Institute of Light Industry (RDILI) under Mongolian University of Science and Technology. 
This incubator center serves for research and development specialists as well as private 
sector workers in not only practical demonstrations on product dev elopment, raw 
materials research but also provides international standard operating procedures for fibre 
(wool and cashmere) processing to meet export market requirements. See more on 
https://learning.rdili.ed u.mn/ . 
Under the UNCTAD project titled "Integrating Landlocked Commodity Dependent 
Countries into Regional and Global Value Chains 2018 -2020", a thorough study has been 
conducted in the meat value -chain of Mongolia. During the past three years, the 
Governm ent of Mongolia has received expertise of more than 10 international experts 
from UNIDO whom had carried out on site and remote technical assessments as well as 
situation analysis in the meat, dairy, fibres and leather value chains. The outcomes and 
result s of these studies and assessments has been shared with the relevant Government 
agencies, professional associations and entrepreneurs.  
With EU's assistance, Mongolia has established its first export clusters in four sectors 
namely, i. cosmetics, especiall y with livestock -based ingredients, ii. sea buckthorn oil, iii. 
textiles from yak and baby camel hair, iv. yak leather products. The clusters comprise of 
approximately 100 exporting enterprises, public agencies and scientific/research 
institutions. Each ex port cluster has developed its own cluster strategy and action plan. 
The cluster members were supported through technical training on design, product 
quality, market access and in many other areas.  
Page 5 ，Para.24  
Differential treatment between domestic and foreign entities exists in land rights and the 
requirement that foreign SOEs investing in an entity operating in the mining sector need prior 
approval if they acquire 33% or more of the shares.  
 
Question : 
 
2. Could Mongolia specify the different treatments on foreign entities in terms of land rights?  WT/TPR/M/406/Add.1  
 
- 20 - 
 
  Answer: Article 6.3 of the Law on Land states "Foreign countries, international 
organizations, foreign legal entities, foreign -invested business entities, foreign  citizens 
and stateless persons shall be land users in accordance with the law on the basis of 
specific purposes, terms, and agreements."  
Article 44.5 of the Law on Land states "Business entities with foreign investment shall be 
granted land use rights fo r special purposes, terms and agreements in accordance with 
this law, and the agreement term shall be determined by the Government."  
Article 12.1.1 of the Investment Law states "non -tax incentives may be provided to 
investors for possession and use of land  on the basis of agreement for up to 60 years and 
this agreement term shall be extended by up to 40 years at only one time." Above Articles 
all indicate Mongolia grants land use rights to foreign investors as part of non -tax 
incentives.  
Page 5 ，Para.26  
The Government's general policy is to increase competitiveness and promote the development of a 
"national production" programme that prioritizes export -oriented production and import -substituting 
manufacturing. To achieve these objectives, the Government suppo rts the manufacturing sector 
through several measures and incentives and a number of sector -specific programmes or policies, 
such as the cashmere programme.  
 
Question : 
 
3. Please specify what kind of supportive policies Mongolia provides to export -oriented  
production and import -substituting enterprises?  
Answer: The incentives which the Government provides for exporters include:  
- Mongol Export Program which promotes export production, particularly non -
mining export,  
- Accessibility of export markets through FTAs and EPAs (APTA, Mongolia -Japan 
EPA),  
- Marketing the export products at international expo and trade fairs (World Expo, 
Shanghai Expo, biennial Mongolia -China Expo, ITB),  
- Export development through development partnership (Development of export 
clusters with the assistance of the EU TRAM project, WB Export development 
project focuses on export financing and skill development) , 
- The Government attaches great importance to trade facilitation through effective 
TFA implementation and improved border and customs coordination,  
- Launching of Foreign trade information portal in December 2020,  
- Commitment to infrastructure projects and dry port development.  
Page 11 ，Para.23  
Tobacco products are the main agricultural import. Mongolia's measures in agriculture include: 
tariffs, averaging 7% with peaks as high as 40% (tobacco products).  
 
Question : 
 
4.What are the ratios of imported tobacco raw materials and products to the overall imported 
agricultural products (in terms of quantity and value respectively) from 2018 to 2020? Does the 
imported tobacco products contain new tobacco products such as e -cigarettes and heat -not-burn 
cigarettes? Could these  measure s effectively curb tobacco consumption when facing insufficient 
domestic production capacity? Please assess and explain the purpose of imposing 40% tariff on 
imported tobacco products and its effect.  
Answer: Total tobacco and manufactured tobacco products:  
• In 2018, 3.4 thousand tons, 59,647.4 thousand US dollars;  
• In 2019, 3.5 thousand tons, 65,159.4 thousand US dollars;  
• In 2020, 3.4 thousand tons were imported for 63,114.0 thousand US dollars.  WT/TPR/M/406/Add.1  
 
- 21 - 
 
  The shares of imported tobacco raw materials and products in 201 8 are 8.8% out of the 
total agricultural output while it is placed at 10.1% in 2019, and 9.4% in 2020 
respectively.  
The implementation of the 40% excise tariffs on tobacco is to achieve the two key 
objectives: (a) the public health objective of reducing t he demand for tobacco products 
(in particular, consumption among current smokers), and reducing the number of new 
smokers via higher prices induced by taxes; and (b) achieving higher overall tax revenues 
by efficient excise tax systems.  
Facing insufficien t domestic production capacity, Mongolia does not have any alternative 
measures that would be equally effective to protect and improve public health by reducing 
the usage of tobacco products.  
Tobacco excise taxes are a uniquely strong and cost -effective me ans to prevent and 
reduce tobacco usage, and so to prevent tobacco -attributable premature deaths and 
serious disease (NCI and WHO 2016; Warner et al 1995). Tobacco excises are crucial to 
achieving the SDG targets on reducing premature mortality from non -communicable 
diseases and on strengthening implementation of the WHO Framework Convention on 
Tobacco Control.  
Growing evidence base from a wide variety of countries shows that higher tobacco prices 
(of which tobacco taxes are a key driver) and taxes are eff ective and important means to 
reduce tobacco -attributable premature mortality and serious diseases through reduced 
tobacco consumption by existing users and prevention of taking up tobacco usage. In 
many fellow countries, higher tobacco prices and taxes re present a significant revenue 
stream for financing for development (IARC 2011; NCI and WHO 2016; WHO Framework 
Convention for Tobacco Control; World Bank 1999; World Bank 2017).  
Table 1. Import statistics of HS chapter 24: Cigars and manufactured tobacco p roducts 
(2020, '000 USD)  
HS Code 
of Goods  Description 
of Goods  Unit of 
quantity  Import  
2017 year  2018 year  2019 year  2020 year  
Numbers  Rate/  
Price  Numbers  Rate/  
Price  Numbers  Rate/  
Price  Numbers  Rate/  
Price  
2402 Cigars, 
tobacco  Thousands 
piece 2,918,038.4  56,981.7  2,550,589.7  53,744.3  2,905,102.0  61,085.0  3,080,984.0  60,641.4  
240220  Cigarretes 
containing 
tobacco  thousands 
piece 290,1703.8  56,717.4  2,550,312.6  53,712.2  2,905,094.8  61,042.2  3,079,980.5  60,563.9  
2403 Other tobacco  кg 944,291.4  6, 05.9  858,235.7  5,903.1  631,071.4  4,074.4  350,201.9  2,472.6  
24031100  Water pipe 
tobacco  кg 0.0 0.0 3.9 0.2 71.0 2.3 93.0 2.9 
24031910  Manufactured 
tobacco for use 
in pipes  кg 226,012.5  1,283.8  246,941.5  1,402.7  148,987.5  846.2  219,025.0  1,244.1  
2403192  Manufactured 
tobacco for 
making 
cigarattes  кg 677,896.0  4,823.9  573,708.0  4,304.4  465,404.0  3,145.3  110,536.0  1,148.1  
TOTAL     63,287.6   59,647.4   65,159.5   63,114.1  
Page 11 ，Para.23  
In 2013, the Mongolian Agricultural Commodity Exchange was established to improve the supply 
and trade of agricultural products, particularly cashmere.  
 
Question : 
 
5. How does the Mongolian Agricultural Commodity Exchange promote the supply and trade of 
cashmere?  
Answer: Cashmer e is the top product at the Agricultural Commodity Exchange. The 
existence of the Agricultural Commodity Exchange provides a positive message to all 
stakeholders in cashmere industry. Given the vast land and sparse inhabitance of herders 
raw cashmere colle ction is not easy work. With the Agricultural Commodity Exchange the 
whole collection and supply process become more organized and effective. Thus it helped 
to make supply cost down and predictable as well.  
 WT/TPR/M/406/Add.1  
 
- 22 - 
 
  Page 11 ，Para.26  
The Government supports the manu facturing sector through several measures and incentives and a 
number of sector -specific programmes or policies, such as the cashmere programme.  
 
Question : 
 
6. In what specific forms does the cashmere programme support manufacturing?  
Answer: In order to in crease the capacity of cashmere processing up to 60 percent, the 
following areas have been targeted:  
• Promote favorable and stable legal, investment and taxation environment to 
increase the production and export of high value -added products;  
• Improve goat breed and raw material preparation and cashmere quality;  
• Moderately increase the level of full cashmer e processing and increase its 
production and export of high value -added products;  
• Development of consumer -friendly competitive products with an advanced 
technology for the targeted export market;  
• Increase production productivity by training and specializi ng the industry's human 
resources based on demand and requirements.  
Page 54 ，Para.3.49  
Similar to other countries, many import (and also export) prohibitions and restrictions emanate from 
international treaties to which Mongolia is a party, such as the Bas el Convention on the Control of 
Transboundary Movements of Hazardous Waste, the Hague Convention for the Protection of Cultural 
Property, the Convention on International Trade in Endangered Species (CITES), the Rotterdam 
Convention on the Prior Informed Co nsent Procedure for Certain Hazardous Chemicals and Pesticides 
in International Trade, the Protocol to Eliminate Illicit Trade in Tobacco Products, the Montreal 
Protocol on Substances that Deplete the Ozone Layer, the Single Convention on Narcotic Drugs, t he 
Convention on Psychotropic Substances, the United Nations Convention against Illicit Traffic in 
Narcotic Drugs and Psychotropic Substances, the Stockholm Convention on Persistent Organic 
Pollutants, and the Minamata Convention on Mercury. Additionally, a number of domestic provisions 
are also in place, such as the requirement for an import licence for jet fuel.  
 
The complete lists of prohibited goods and those subject to restriction are outlined in Tables 3.13 
and 3.15.  
Table 3.13 List of prohibited goods, 2020  
Good  Legal reference  
Counterfeit medicine  Article 11.1.7 of the Law on Medicines and Medical 
Devices  
Unauthorized drugs, medical devices and biologically 
active products  Article 15.9.3 of the Law on Medicines and Medical 
Devices  
Question : 
7. Have Traditional Chinese Medicines been included into unauthorized drugs? If so, please 
indicate the name of these drugs.  
Answer: No. Traditional Chinese Medicines have not been included into unauthorized 
drugs. According to the Law on Medicines and Medical Devices, all medicines on the 
market, including traditional medicine and herbal medicines, should be registered before 
entering the market. In this regard, traditional Chinese medicines can be registered and 
marketed upon fulfi llment of the registration requirements. To date, 19 traditional 
Chinese medicines have been registered in the Mongolian Drug Registry.  
Page 29 ，Para.2.33  
Australia, Canada, the EAEU, the European Union, Japan, New Zealand, Norway, Switzerland, 
Turkey, and the United States provide preferential access to Mongolia under their Generalized 
System of Preferences (GSP) arrangements. Since 2006, Mongolia has been eligible for the GSP+ 
arrangement of the European Union.  WT/TPR/M/406/Add.1  
 
- 23 - 
 
  Question : 
 
8.  Mongolia benefits from the GSP  arrangements granted by many WTO members, especially 
the European Union. What is the effect?  
Answer: Mongolia, along with 14 other countries, joined the EU's "GSP+" Generalized 
Scheme of Preferences for countries with good governance on July 1st, 2005. Th e GSP+ 
scheme is extended every three years and the current scheme runs from 2014 -2023.  
 
The GSP+ scheme covers various types of textiles and garments, leather goods, furs, wool 
and cashmere, wood products, carpets and other important export products of our 
country.  
 
The GSP+ scheme provides certain benefits to our business sectors, but it does not take 
full advantage of the exemption from customs duties on 7,200 types of goods. Thus, we 
need to produce and diversify more export -oriented produ cts that are competitive in the 
target markets and meet international standards.  
 
Under the GSP+ scheme, Mongolia has exported total of $318 million worth of goods to 
the European Union in 2019, of which 50 companies enjoyed $49.4 million worth of 
exempti on, while $127 million worth of goods has been exported and 51 companies 
enjoyed $38.8 million worth of exemption in 2020.  
Page 33 ，Table.2.47  
A number of  investment incentives, both tax and non -tax, are provided for in Mongolia's Law on 
Investment and in sector legislation. Tax incentives include exemptions, credits, acceleration of 
depreciation and its deduction from taxable income, and deduction of emplo yee training expenses. 
Imported machinery and equipment is eligible for customs tariff relief, as well as zero -rated value 
added tax (VAT), if used in certain designated sectors/areas, e.g. nano -bio and innovative 
technologies, construction materials, oil,  agricultural processing, construction of power plants or 
railways, or for exported products.19 Non -tax incentives include land possession or lease periods; 
support for operations in industrial parks and free zones with preferential registration and inspec tion 
procedures; support for the implementation of infrastructure, including labour issues; support for 
the financing of innovation projects and issuance of guarantees for the financing of exported 
products; visas and permanent residency permits; and other  support.  
 
Question : 
 
9. Please specify the content of the non -tax incentive measures related to infrastructure and 
labour?  
Answer: Article 12.1.3 of the Investment Law establishes that non -tax support for 
investment includes extension of "…support in implementation of development projects 
in infrastructure, manufacturing, science and education sectors, in increasing the number 
of expatriate workers and specialists, exempting from foreign manpower fees, issuing 
relevant permits in simplifie d regime". Each year, the Government of Mongolia determines 
the number of foreign labor force and specialists to be recruited during the given year.  
10. Do all foreign investors enjoy the above -mentioned various investment incentive measures 
equally?  
Answe r: The provision 3.1.2 of the Investment law establishes that "investor" is identified 
as both international and national investors that have made investment in Mongolia, the 
provision 4.1 also says "This Law shall apply to investments by international and  national 
investors made on territory of Mongolia". Under this law, both international and national 
investors enjoy the same level of protection and guarantees that are offered in terms of 
intellectual property and transferring assets and income to abroad.  
Page 50 ，Table.3.42  
The VAT rate remains unchanged, at 10% on most goods and services. It is also applied on imports 
but is zero -rated on exports. The law specifies that the Government shall determine the VAT rate on WT/TPR/M/406/Add.1  
 
- 24 - 
 
  imported gasoline and diesel fuel, with in the range of zero to 10%. Certain other goods and services 
are exempt from VAT, e.g. passenger airplanes and their parts; certain domestically produced fruit, 
vegetables, meat, and dairy; stock and securities transactions; banking and insurance services ; 
small and medium -sized factory equipment, machinery, and their spare parts manufactured in 
Mongolia; equipment to be used for renewable energy surveying; certain imported logs, lumber, and 
wood products; health services; and gold.31 To determine the taxa ble value for VAT on imports, the 
value of customs duties, excise taxes, and other taxes is added to the customs value.  
 
Question : 
 
11. In the field of engineering contracting, does Mongolia government provide VAT exemption 
for the imported equipment for permanent projects? Does the imported mechanical equipment for 
engineering construction enjoy VAT exemption?  
Answer: Parliament discusses and passes law about VAT exemption for imported 
mechanical equipment in order to accelerate the time per iod of major infrastructure 
projects and engineering construction projects at each necessary time. Please also see 
the Article 13 of the Law on Value Added taxes in the following link:  
https://www. legalinfo.mn/law/details/1122 . 
Page 63 ，Para.3.67  
In 2019, an Export Promotion Council was established by the Government, pursuant to an order of 
the Prime Minister, with a mandate of overseeing progress on the Mongolian Export Program.  
 
Question : 
 
12. Please brief the work efficiency of the Export Promotion Council?  
13. What effect has this Council made in promoting export?  
Answer: In order to ensure cross -sectorial coordination of export promotion policies and 
its implementation the Export Promotion Co uncil headed by the Foreign Minister was 
established in 2019. The Council meeting is organized no less than two times per year in 
discussing the pertinent issues of the program implementation. The Council endorses 
Mongolia`s Trade and Investment Roadmap 20 19-2023 which complements the 
objectives set out in the "Mongol Export Program" in supporting the domestic producers 
to export to the international markets. The Roadmap outlines eight priority sectors not 
limited to traditional ones such as wool/cashmere, meat/diary but it also established 
emerging sectors of renewable energy and ICT, which has potential to attract investment 
and promote export in the non -mining sector.  
The Council partners with various development partners, such as the World Bank. The 
World Bank`s Export Promotion Project assists the Government of Mongolia in addressing 
challenges affecting firm's capacities in terms of access to finance, quality management 
and skills development.  
The Council regards the agriculture sector as one of the m ost priority sector for 
diversification considering Mongolia has significant potentials in this field given the large 
number of livestocks. Mongolia's extensive herding culture in a free -roaming livestock in 
cooperation with international demand for grass -fed beef and market opportunities 
offered by Russia and China provide significant opportunities for Mongolia to achieve more 
balanced and sustainable economic growth. The export volume of non -mining products 
has reached USD 823 million in 2019 and grew by 3.4%. In 2019, Mongolia has exported 
58,655 tons of meat and meat products, in which, USD 2441 million worth of sheep and 
goat meat (7,041 tons), USD 57.7 million worth of horse meat (30,835 tons), USD 50 
million worth of heat -processed meat (18,421 tons) and USD 2.5 million worth of meat 
by-products (2,358 tons) have been exported.  
The Council and its member organizations regularly host theme Expos and Forums to 
promote export and investment. The Council successfully hosted the first virtual forum 
"Export Mongolia 2020" in December 2020 with policy sessions, B2B meetings and virtual 
expo.  https://www.expomongolia.org/ .  WT/TPR/M/406/Add.1  
 
- 25 - 
 
  Page 63 ，Para.3.67  
Its main mandate is to increase the exports of non -mining products by creating a conducive 
environment and facilitating trade. Its initiatives to support exports include:  
• providing incentives for exporters;  
Question : 
 
14. Please specify the incentives provided for exporters.  
15.Does such incentive measures comply  with the WTO Agreement on Subsidies and Countervailing 
Measures ? 
Answer: There are no subsidies in Mongolia for export industries and exporters. The 
incentives which the Government provides for exporters include:  
- Mongol Export Program which promotes expo rt production, particularly non -
mining export,  
- Accessibility of export markets through FTAs and EPAs (APTA, Mongolia -Japan 
EPA),  
- Marketing the export products at international expo and trade fairs (World Expo, 
Shanghai Expo, biennial Mongolia -China Expo,  ITB),  
- Export development through development partnership (Development of export 
clusters with the assistance of the EU TRAM project, WB Export development 
project focuses on export financing and skill development),  
- The Government attaches great importanc e to trade facilitation through effective 
TFA implementation and improved border and customs coordination,  
- Launching of Foreign trade information portal in December 2020,  
- Commitment to infrastructure projects and dry port development.  
Page 65 ，Para.3.75  
As a result of the COVID -19 pandemic and the introduction of border restrictions, Mongolia issued a 
government resolution pursuant to the Law on Disaster Protection that puts in place measures to 
support the cashmere industry. In particular, it reduces inte rest rates on new loans, provides special 
loans of up to MNT 300 billion for cashmere production with a one -year term and a 3% rate of 
interest, and advises the Development Bank of Mongolia to take measures to increase funding 
sources.  
Question : 
 
16. What are the criteria and requirements for obtaining special loans?  
Answer: Soft loans are issued to businesses participating in cashmere production that 
meets the selected bank's criteria and requirements. The interest rate on concessional 
loans directly from the Fund is 3% per annum, the interest rate on commercial bank loans 
is 5-6% per annum with a rate of 5 years while the grace period is 1 year.  
Page 66 ，Table.3.82  
One of the policy developments during the review period was the adoption, in 2016, of th e National 
Quality Program, which set out to improve the legal environment for standardization, metrology, 
and the accreditation infrastructure to reach the level of international standards. The Program 
emphasizes the food sector and is being implemented d uring 2016 -20. In addition to its main goal 
of improving the legal framework, it also plans to build and develop a quality infrastructure system, 
develop the human resource capacity of the quality infrastructure, and increase the knowledge and 
understandin g of consumers and producers regarding quality. Specific goals related to trade include 
improving the quality of export -oriented products and services through standardization, 
implementing the WTO Technical Barriers to Trade (TBT) Agreement, increasing the  capacity of 
testing laboratories for export -oriented import -substituting products, establishing an electronic 
foreign trade control system, and introducing EU standards in the construction sector to promote 
trade, testing, and conformity assessment. As at  October 2020, not all of these objectives had been 
met; thus, some are also reflected in the new Government Action Plan for 2020 -24. 
 
 WT/TPR/M/406/Add.1  
 
- 26 - 
 
  Question : 
 
17. Do the above standards and technical requirements involve any content that may be 
regarded as technical b arriers to trade?  
Answer: Mongolia pursues a policy toward in reducing any technical barriers to trade to 
comply the WTO ТВТ Agreement. For example, the revised "Law on standardization, 
technical regulation and accreditation of conformity assessment" facil itates the creation 
of voluntary standards. Prior a revision of Standards law in 2017, all of national MNS 
standards were mandatory.  
18. What are the applicable requirements of the quality infrastructure system and EU standards? 
When was its start-up time? What achievements does this measure make in quality control?  
Answer: EU -funded Project on Support to the Modernization of Mongolian Standardization 
System (SMMSS) was implemented at the MASM during the period 2014 -2017. The main 
outcome of t he project has been to support and improve legal environment of standards, 
technical regulations and conformity assessment procedures to be complied with the WTO 
TBT Agreement and development of National Quality Program.  
Page 68 ，Para.3.88  
In 2016, an Order  of the Minister of Industry was issued that approves and enforces technical 
regulations on imported alcoholic beverages. It requires traders that import alcoholic beverages to 
fully meet the specifications that include Mongolian technical regulations for certain beverages, 
permissible levels of alcohol content, acidity/alkalinity measures, physiochemical characteristics, 
bacteriological indicators, alcohol safety levels of heavy metals, and packaging, transport, and 
labelling requirements. According to the  authorities, technical regulations are applicable to both 
imported and domestically produced beverages. This technical regulation has not been notified to 
the WTO.  
 
Question : 
 
19. Does the technical regulations adopt relevant international standards? What  are the specific 
standards?  
Answer: The article 5 and 6 of the revised law on "Standardization, technical regulation 
and accreditation of conformity assessment" facilitates that the proposed technical 
regulations shall use international and regional stand ards if required and relevant 
international standards exist. In addition, "ISO/IEC Guide 21 -1, Regional or national 
adoption of International Standards and other International Deliverables — Part 1: 
Adoption of International Standards" adopted as the natio nal MNS standard.  
20. If the relevant international standards have not been adopted, why does Mongolia choose 
not to make a notification of this technical regulation?  
Answer: Since the last TPR in 2015, Mongolia has submitted 5 notifications to WTO. More 
information is available on website of MASM: https://estandard.gov.mn/regular .   
MASM has been working to improve the si tuation and training the officers -in-charge of 
TBT matters and the function of TBT National Enquiry point.  
Page 70 ，Table.3.21  
Year Total 
approved 
standards  Of which are 
international 
standards  Percentage of standards 
harmonized to 
international standards  Standards 
withdrawn  Technical 
regulations  
2015 128 76 .. 124 0 
2016 115 65 .. 177 0 
2017 101 49. .. 53 1 
2018 60 20 41.2 23 0 
2019 118 81 41.5 83 4 
2020.1 -8 106 36 42.0 22 0 WT/TPR/M/406/Add.1  
 
- 27 - 
 
  Question : 
21. How does the new Standardization Law  regulate the adoption of international standards?  
Answer: The Article 9.2 of the revised law on "Standardization, technical regulation and 
accreditation of conformity assessment" states that "The specifications and requirements 
of natio nal standards shall use international and regional standards if required and 
relevant international standards exist. "  
22. Why does the rate of fully equivalent adoption of international standards start to fall after 
the implementation of the new Standardi zation Law ? 
Answer: MASM is currently pursuing the policy to increase the percentage of MNS 
standards in align with the relevant international standards. The missing statistics are 
included below in Table 3.21.  
Page 75 ，Para.3.119 -3.120  
3.119 The AFCCP is a lso responsible for the regulation of prices of natural monopolies (Article 6 of 
the Competition Law). According to Article 5.1 of the Competition Law of Mongolia, a business entity 
is considered to have a natural monopoly where the average social cost is the lowest when only one 
entity supplies a certain product to the market. As at February 2020, 151 natural monopoly entities 
were operating in various sectors, e.g. transport, services, finance, fuels and oil products, shopping 
centres, the coal market, an d communications. 117 It is noted that many of these are also state - 
owned enterprises (Table 3.23). The Competition Law specifies in Article 6.1 that the AFCCP 
administers activities of natural monopoly enterprises including the granting permissions for a ny 
changes in the sales prices depending on the actual costs.  
 
3.120. According to Article 15.1.7 of the Competition Law, the AFCCP can submit proposals to higher 
government bodies or the administrative court to set aside decisions of public administration, local 
self-government, and local administrative organizations  that are in violation of this Law.  
 
Question : 
 
23. Please introduce the investigation conducted by the AFCCP against the restrictions of 
competition among natural monopoly enterprises. Is there any specific case?  
Answer: Natural monopoly enterprises are operating in sectors such as transport, 
services, electricity, heat, communications, asphalted roads. There are no natural 
monopoly entities in the sector of finance, fuels and oil products, shopping centers and 
the coal market as of today. The titles of state -owned business entities that are mentioned 
in Table 3.23 are not natural monopoly business entities. The number of case investigation 
regarding the restriction of competition among natural monopoly enterprises is very low.  
24. Please introduce the implementation of AFCCP's "proposals to higher government bodies or 
the administrative court to set aside decisions of public administration, local self -government, and 
local administrative organizations that are in v iolation of this Law".  
Answer: According to Article 13 of the Competition Law /2010/, the state administrative 
institutions, local self -governance institutions and local administrative institutions are 
prohibited to restrict competition. Therefore, as an implementation measure of this 
particular provision, the AFCCP conducts investigations on the decisions and the licenses, 
permissions from the public administrations such as the other government agencies, 
sector regulators, ministries and local self -govern ment and local administrative 
organizations annually. In 2019, "Ezines Airways" LLC's Ulaanbaatar -Istanbul -
Ulaanbaatar route has been restricted due to the decision of the Minister of Roads and 
Transportation Development, ordering an operation on scheduled  flights without sharing 
travel numbers. The AFCCP considered the decision as a violation of Article 13.2.1 
"prohibiting or restricting a business entity to engage in a certain type of activity, 
manufacturing or selling products;" of the Competition Law.  
 WT/TPR/M/406/Add.1  
 
- 28 - 
 
  Page 80 ，Para.3.134  
Mongolia received legislative assistance in 2017 from WIPO in the area of  patent and industrial 
design rights. Subsequently, legislation was drafted to revise existing IP laws, namely the Patent 
Law, the Law on Copyright and Related Rights, and the Law on Trade Marks and Geographical 
Indications. The Patent Law of 25 June 1993 was amended in September 2016. Parliament adopted 
the Law on Intellectual Property on 23 January 2020, and it will enter into force on 1 December 
2020. According to the authorities, the Law aims to address overlaps, conflicts, and other issues 
within exist ing IP laws.  
 
Question : 
 
25. How to implement Mongolian IP Laws after it comes into effect? What about the legal effect 
of the Patent Law and other separate laws? Will they become expired as the Law on Intellectual 
Property comes into effect?  
Answer: The L aw on Intellectual Property, an umbrella law, was approved by the 
Parliament on 23 January 2020 and entered into force as of 1 December 2020. This Law 
regulates various works that are protected by intellectual property rights, system and 
functions of intel lectual property organization, and issues related to encouraging 
commercialization of intellectual property. However, Trademark and GI law, Patent law 
and Copyright and Related rights law, which we call IP package law, are expected to be 
discussed during s pring session of the Parliament in 2021. Thereby, Patent law and other 
separate laws will not be expired and will be effective. Please refer to following link to 
look for English version of the Law on Intellectual Property.  
https://www.legalinfo.mn/law/details/15971?lawid=15971 . 
Page 85 ，Para.4.3  
As at 2019, 73.4% of the territory was agricultural land, but most of it was pastures for grazing 
(Chart 4.1). Only 1.1 million hectares, or 1%, is arable land suitable for crop production; most arable 
land is used to produce wheat. According to the Land L aw, pastureland is to be used for a common 
purpose pursuant to government regulation. Foreigners, both persons and legal entities, may use 
land for a specific purpose subject to a specific timeframe. While abundant, Mongolia's pastureland 
is described as e cologically fragile and subject to environmental degradation. Due to Mongolia's 
climate, agricultural production (both crops and livestock) can vary significantly year to year as a 
result of droughts, floods, dzud (severe winter), cold, and the growing sea son. The sector faces a 
number of additional challenges, such as proximity to markets, the compatibility of sanitary and 
veterinary standards with international standards (Section 3.3.3), lack of access to financing, and 
relatively little use of irrigation . 
 
Question : 
 
26. What are the application procedures and conditions for foreign persons or legal entities to 
use the pasture? What is the current number of foreign persons or legal entities permitted to use 
Mongolian pastures?  
Answer: Article 6.3 of the C onstitution of Mongolia states, "Land other than pastureland, 
public tenure and special state needs may be allocated to Mongolian citizens for 
ownership only. This does not apply to subsoil ownership. Citizens are prohibited from 
selling, trading, gifting or mortgaging their private land to foreigners or stateless persons, 
as well as allowing others to possess or use it without the permission of the state 
authorities".  
Article 52.2 of the Land Law states, "Summer, autumn and encampment pastures shall be 
divided into baghs (administrative unit) and khot ails (community unit) and used for 
public use. Soum and district governors shall set the schedule for spring and winter 
pastures to be freed from livestock, and bagh and khoroo (administrative unit) governors  
and citizens shall follow and implement them, taking into account the annual pasture yield 
and citizens' opinions. In order to protect and rehabilitate certain areas of winter and 
spring pastures, the soum (administrative unit) governor may allow herders to use 
pastures in groups based on the proposal of the bagh Citizens' Public Khural, taking into 
account the specifics of the region, pasture use traditions, land capacity". Therefore, WT/TPR/M/406/Add.1  
 
- 29 - 
 
  foreign citizens and legal entities either residing in Mongolia or out the country, shall not 
be granted permission to use Mongolian pastureland.  
44.9. The land possession and use contract of a Mongolian citizen, business entity or 
organization that leased land to a foreign citizen, stateless person or legal entity without 
the permission of the competent authority shall be terminated and the damage caused 
during the use shall be compensated.  
6.3. Foreign countries, international organizations, foreign legal entities, business entities 
with foreign investment, foreign citizens and stateless persons may be land users in 
accordance with the legislation on the basis of specific purposes, terms, conditions and 
agreements.  
44.4. The issue of allowing foreign citizens and stateless persons permanently residing in 
Mongolia (for more th an 183 days) to use land only for their family's joint use shall be 
decided by the Governor of the respective level on the basis of auction.  
Page 86 ，Para.4.5  
In terms of crops, a small but steady increase occurred in the number of hectares sown each year, 
from 418,000 hectares to 526,000 hectares during the review period, an increase of 26%. As a 
result, crop output also generally increased, although some crops  fluctuated significantly (Table 4.1). 
However, the land sown is still lower than the peak of about 800,000 hectares in 1990. As at 2019, 
the main crops in terms of area sown were cereals 6 (71%), fodder (8%), and potatoes (3%). 
Significant growth was achi eved in the production of fodder, which is increasingly needed to support 
livestock, due to the degradation or overuse of pastureland. Crop harvest output and yields are 
largely determined by climate change, i.e. average temperatures and precipitation duri ng the 
growing season. By international standards, crop yields remain low, also due to poor seed quality, 
lack of mechanization, and plant diseases.  
 
Question : 
 
27. According to Chart 4.2, the total output value of Mongolian crops has grown slowly from 
2013 to 2019. In response to problems such as poor seed quality, lack of mechanization and plant 
diseases, what measures does the Mongolian government take?  
Answer: Local vegetable production of Mongolia is to meet 70% of domestic demand by 
2020 and its total ity by 2025 through on -farm mechanization, greater use of protection 
culture (greenhouses and plasticulture) and introduction of water -saving irrigation 
techniques etc. Therefore smallholder farming is to be one of the priorities of the 
Government. The Gov ernment appreciates development partners such as China, Russia 
and ADB, SDC and FAO for the assistances in the development of smallholder farming. 
ADB 's Community Vegetable Farming for Livelihood Improvement Project and SDC 's 
Mongolian Vegetable Project an d FAO 's VEGI and SECIM Component II focus on vegetable 
production through better varieties, seeds, improved technology and income generation 
through better marketing. The soft loan of the Government of the PRC and the credit line 
of the EXIM Bank of the Ru ssian Federation enabled the smallholder farmers have farming 
machineries and tractors.  
Page 90 ，Table.4.3  
Support food and agricultural production, regional development, and diversification of livestock 
production; stabilize food supply; reduce imports of  some livestock products; and promote exports. 
Increase herder income and create value added by introducing advanced technologies and 
developing export -oriented livestock production. Banks to supply loans to herders from bank or 
government funds.  
 
Question : 
 
28. What is the general interest rate of loans provided to herders under this project? How much 
lower is the rate comparing to the rate of ordinary commercial loans? What are the requirements for 
herders to obtain such loans under this project? In addition to providing loans, what other measures 
does Mongolia take to support export -oriented livestock production?  WT/TPR/M/406/Add.1  
 
- 30 - 
 
  Answer: The Government of Mongolia passed a decree No. 113 in 2020 which funds the 
concessional loans, selection process, transfer loans , and repayments from the Small and 
Medium Enterprise Development Fund. The interest rate on concessional loans directly 
from the SME Fund is 3% per annum, the interest rate on commercial bank loans is 5 -6% 
per annum with a rate of 5 years while the grace period is 1 year.  
 
Source: Government No.113 degree of 2020.  https://www.legalinfo.mn/annex/details/10929?lawid 
=15250 . 
The interest rate information is cited from Government No.138 degree of 2016, which is 
still valid up to date.  https://www.legalinfo.mn/annex/details/7481?lawid=12277 . 
In addition to providing loans, the Government of Mongolia a ttaches great importance to 
the livestock health. Ensuring livestock health increases the marketability of Mongolian 
meat in international markets. In this regard, the online "Animal Health Traceability 
System" which is designed to improve animal health su rveillance, identification of 
epidemics and outbreaks of disease can be considered a major step. The system traces 
the health of livestock from birth, enabling herders and veterinarians to provide accurate 
and verifiable information on animals to buyers an d consumers, including health history, 
veterinary treatments, and geographical movements. First tested in 2017 -2018 in 
selected soums (administrative units) of three aimags, the system will be up scaled 
nationwide by the General Authority for Veterinary Se rvices (GAVS) in cooperation with 
Swiss Development Agency.  
 
It is based on a database at the GAVS to monitor the quality and availability of veterinary 
services for herders, and enables to create disease -free zones. In the framework of the 
initiative, a m obile phone application has been developed that allows customers to view 
information on the origin and health of animals when buying meat.  
The Government puts forward a policy goal, in terms of livestock health, to decrease 
vaccination drastically in the w est and the central regions and pursues the strategy of 
herd surveillance.  
Page 93 ，Para.4.19  
Other forms of government support include VAT and duty exemptions on imports of farm machinery 
(Sections 3.1.3.2 and 3.1.4.1), subsidization of the construction and renovation of irrigation systems 
(30% subsidized), construction of dams and reservoirs (100% subsidized), and training 
programmes.  
 
Question:  
 
29. Does Mongolia provide a certain percentage of subsidies for other types of construction 
projects such as railways and highways?  
Answer: The Government of Mongolia provides tax breaks and exemptions for labor, 
machinery and equipment. For example, under the Mongolian Investment Law adopted in 
2013, tax incentives provided to inves tors include tax exemptions, tax reliefs, and tax 
stabilization throughout the life of investment project. Per the construction projects of 
power plants and railways, there are tax incentive such as exemption of customs duties 
for imported machinery and eq uipment during the construction period and value -added 
tax exemption at the rate of up to zero.  
Page 136 ，Table.4.204  
Since the early 2000s, the Government's roads policy has focused on the construction of five north -
south highways and one east -west highway , including the Mongolian sections of the Asian Highway 
Network and the Central Asia Regional Economic Cooperation (CAREC) corridors. Paved access roads 
from provincial urban centres to the main road network are also being constructed.  
 
 
 
 WT/TPR/M/406/Add.1  
 
- 31 - 
 
  Question:  
 
30. Does Mongolia have any plan to build new roads in recent years? If yes, please indicate the 
plan and its expected time.  
Answer: Mongolian Parliament has approved the "Vision -2050" long -term development 
policy of Mongolia by Resolution No. 52 and the Govern ment Action Plan for 2020 -2024 
by Resolution No. 24 in 2020, respectfully. These policies aim to construct a new economic 
corridor road over the next decade. In the next four years, Mongolia plans to build newly 
paved roads to connect border ports and prom ote tourism. In particular, paved roads will 
be built to Khavirga, Ulkhan, Artssuuri, Khangi, Tsagaandel Uul, and Gashuunsukhait 
border ports. The Government is planning to build vertical and horizontal paved roads 
from 2025 to promote new economic corrido rs. In addition, we are partially constructing 
the Zamyn -Uud-Altanbulag highway project, which is a part of the Asian Highway 
Network.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 6，Para 2.17 
To revive the investors' confidence and to attract more foreign investment, the Government 
established a Council on Protection of Investors' Interests (2016), a Public -Private Consultative 
Committee (2017) and a One -stop Service Center (2019).  
 
Question:  
 
31. In addition to setting up new instituti ons, is there any other measure through the formulation 
of laws, policies, or schemes to  enhance  the attractiveness for  foreign investment?  
Answer: Based on the assessment of the implementation of the Investment Law of 
Mongolia and the research on interna tional investment policy and legal acts, National 
Development Agency is working to create a more favorable legal environment for 
investors by amending the existing investment law. The Government of Mongolia has also 
announced to implement a comprehensive I nvestment Climate Reform and establish a 
Foreign Investment Promotion Council under the Prime Minister of Mongolia.  
Page 15，Para 3.47 
The trade in services include the cross -border, foreign currency payments for professional workers, 
proceeds from and payment for international and transit transport, tourism, art and cultural events, 
sport and health services, payments for franchising and securities, as well as engineering and 
business consultancy services. The output of our trade in services reached USD  4 billion in 2019 and 
accounted for 18% of the total turnover of goods and services. The sector's trade deficit amounted 
to USD 2 billion which is a considerable foreign reserve outflow.  
 
Question:  
 
32. Whether Traditional Chinese Medicine is included in the trade in services in Mongolia?  
Answer: According to the IMF's BPM6 manual, health -related travel that covers goods and 
services (e.g., medical services, other health care, food, accommodation, local transport, 
acquired by those traveling for medical reasons), and statistics are difficult to estimate in 
detail. Travel statistics in the Balance of Payment (specifically health -related services) 
are calculated based on the results of the sample survey (ex penditure survey of Mongolian 
citizens treated abroad). Therefore, it cannot certain that the import of traditional Chinese 
medicines is all inclusive. However, we hope that this survey estimation includes some of 
the traditional Chinese medicines. Detaile d statistics are not available at this moment.  
PART III. OTHER QUESTIONS  
33.Whether the application of Traditional Chinese Medicine  (TCM) is legal in Mongolia?  
Answer: Foreign medical professionals who meet the requirements of Articles 25.8 and 
25.9 of the Health Law of Mongolia are licensed to be engaged in medical activities in 
Mongolia.  WT/TPR/M/406/Add.1  
 
- 32 - 
 
  34. Mongolia imposes higher  consumption tax on cigarettes  whose harm and tar content could 
be reduce d through modern technology, and lower co nsumption tax on traditional pipe tobacco. 
What is the purpose of  formulat ing this policy and its implementation effect?  
Answer: Please refer the answer given to Question 4.  
35. Does Mongolia have any plan to  establish a more open and stable foreign inves tment 
environment?  
Answer: Based on the assessment of the implementation of the Investment Law and the 
research study on international investment policy and legal acts, Mongolia is working to 
create a more favorable legal environment for investors by amen ding its existing 
investment law. Furthermore, Mongolia aims to provide e -government services to foreign 
investors within the framework of the main goal of "providing public services quickly, 
without delays, and in an open and transparent manner." In addit ion, a working group 
chaired by the Deputy Chairperson of the Cabinet Secretariat has been established to 
implement a comprehensive Investment Climate Reform in Mongolia.  
36. Does Mongolia have any plan on lifting the restrictions on setting up subsidiarie s by a foreign 
bank?  
Answer: A foreign private bank that intends to operate in the banking and financial sector 
is not required to obtain a prior approval.  
 
Article 21.1 of the Investment Law states that Foreign state -owned enterprise that 
intends to hold 33 percent or more of total shares of an entity operating in the banking 
and financial sector of Mongolia is required to obtain a prior approval from the appropriate 
authority of Mongolia. At its plenary session held on January 28th, 2021, the State G reat 
Khural (Parliament of Mongolia) has approved amendments to the Banking Law of 
Mongolia. There are a total of 12 commercial banks operating within the country's banking 
sector and five of them are considered as systemically influential or significant. In 
accordance with the new amendments, the five influential banks will be transformed into 
a public company through an initial public offering on the stock market before June 30th, 
2022. Foreign investors will be able to take shares from these five commerc ial banks 
through the Mongolian Stock Exchange and invest in Mongolia's banking sector.  
  WT/TPR/M/406/Add.1  
 
- 33 - 
 
  FOLLOW UP QUESTIONS FROM CHINA  
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 9 , Para.7  
It offers tax and non -tax incentives to attract potential investors.   
 
Question : 
 
1.Please specify Mongolia’s tax policies for encouraging investment.  
Answer:  The Investment Law sets out tax stabilization incentives and other non -tax 
incentives to promote investment in Mongolia.  
Article 4 of the General Taxation Law of Mongolia states to stabilize tax rates to be paid 
by legal entities, implementing investment projects in accordance with the Law on 
Investment. The objective of this incentive is to strengthen and encourage major 
investment projects.  
Chapter IV of the Investment Law clearly defines and regulates implementation of tax 
incentives aimed at stabilizi ng investment environment. More information on tax 
stabilization incentives can be found in the following link 
www.legalinfo.mn/law/details/15974?lawid=15974 . 
Non-tax incentives may be r endered to investors in the following forms:  
▪ to grant land use rights for up to 60 years on the basis of a contract and to extend 
the contract duration once for up to 40 years under the contract`s primary 
condition;  
▪ to render support to the investors invested in activities in the free zones, 
production and technological park and to serve with alleviated regime of 
registration and checkpoint, to treat foreign investors without discrimination;  
▪ to support the implementa tion of the prospective projects on infrastructure, 
production, science and education, and to grant required permits for increasing the 
number of foreign workforces and specialists and exempting them from 
employment fees the with its alleviated regime.  
▪ to render support for financing the innovation projects and to guarantee the 
financing of manufacturing of export -oriented innovation products;  
▪ to provide permission to the foreign investors, who have made investment to 
Mongolia, on multi -entry and permanen t residential visas according to the related 
laws  
▪ other incentives are specified in the applicable laws.  
Page 9 , Para.8  
They underwent revision during the review period to align with other legislation that implements the 
single window system, electronic data exchange, and advance rulings.  
 
Question : 
 
2.Please specify the main functions of the single window system and the main content of electronic 
data exchange.  
Answer:  The current Law on Customs of Mongolia allows for an electronic data exchange 
and an a dvance ruling of tariff classification.  But t he single window system  is not yet 
operational. These three issues are more clearly defined and reflected in the revised draft 
Law on Customs, which is still under development.  
Page 9 , Para.12  
and while some rates were harmonized between imported and domestic goods, differing ra tes remain 
on gasoline, diesel fuel, and passenger vehicles.  
 WT/TPR/M/406/Add.1  
 
- 34 - 
 
  Question : 
 
3.Please provide more information on the implementation of differentiated consumption tax rates.  
Answer: Gasoline, diesel customs duties, VAT are set at the same level at all border 
crossings. However, the excise tax on gasoline and diesel are set differe ntly, depending 
on the country’s territory, population settlement, infrastructure, location of the border 
crossings in order to reduce the difference in the selling price of petroleum.  
 
Page 10 , Para.16; Page 11 ，Para.23  
The COVID -19 pandemic prompted gove rnment support for the cashmere sector, and a number of 
development funds exist. Mongolia also offers a number of tax rebates, incentives, and duty/VAT 
exemptions to certain sectors or to companies operating in free zones.  
 
Mongolia's measures in agriculture include: tariffs, averaging 7% with peaks as high as 40% 
(tobacco products); quantitative restrictions on a list of 33 strategic food items; domestic support 
and subsidies; and tax incentives and rebates.  
 
Question : 
 
4.Please specify the value -added tax support measures that Mongolia has introduced in response 
to the COVID -19 pandemic, and their effectiveness.  
 
Answer: According to the Law on Customs Duty Exemption and the Law on Value Added 
Tax Exemption, approved by th e Parliament on 9 April 2020 and amended on 28 August 
2020, the imported diagnostic kits, medicines, medical devices, equipment, disinfectants 
and masks for the use in diagnostics and treatment of the epidemic COVID -19 will be 
exempted from customs and val ue added taxes until January 1, 2022. Pursuant to Article 
2 of this Law, a list of goods entitled to tax exemption has been approved by the 
Resolution No. 132 of the Government on April 15, 2020.  
 
5.Please specify the support measures for tax rebates, ince ntives and tariff/VAT exemptions provided 
by Mongolia to certain industries or companies operating in free trade zones.  
 
Answer: Article 16.1 of the Law on Free Zones states that post -tax discounts and 
exemptions shall apply to free zones.   
 
Articles 19.10, 22.5.7 and 22.5.8 of the Law on the Income taxes of the Business Entities 
provides tax reductions on income taxes of business entities that have invested in 
infrastructure  of the free zone.  
 
6.Please introduce the preferential tax policies on value -added tax and tax rebates introduced by 
Mongolia for the purpose of protecting and supporting domestic agricultural development.  
Answer: Imported new agricultural tractors, combines, machinery, flour mills and 
irrigation equipment, forestry machin ery, equipment, fertilizers and pesticides are 
exempted  from VAT until 31 December 2020 under the Resolution No.197, approved by 
the Government on 4 April 2016. Currently, the draft Resolution on VAT exemption on 
these products has been submitted to the Ca binet for the approval by the Government.  
Page 11 , Para.27  
Mongolia adopted or amended numerous regulations regarding banking services, including a new 
regulation on licensing. The banking sector is open to foreign investment; currently, there are no 
foreign banks established as a subsidiary, a branch, or a repres entative office.  
 
Question : 
 
7.Please specify measures on opening up  Mongolia’s banking industry to foreign investment, and 
explain why no foreign banks have established subsidiaries, branches or representative offices in 
Mongolia.  WT/TPR/M/406/Add.1  
 
- 35 - 
 
  Answer -2: On January 28, 2021, The Parliament of Mongolia, approved amendments to 
the Bankin g Law of Mongolia. Effective implementation of the latest amendments to the 
Banking Law will result in reduction in the bank ownership concentration and ensure 
balance between ownership -management -control across bank structure.  Risks associated 
with concen tration on shareholders and executive management are expected to reduce 
thanks to the amendments and enhance additional control by the public and independence 
of banking supervision, bring more transparency and accountability with the help of public 
owners hip in the banks.  Amendments to the Banking Law did not change the regulations 
related to foreign investment. Foreign persons may and expected to participate in the 
shareholding in a bank, current shareholders with excess holdings above the maximum 
cap are  expected to divest or sell them off and as banks are obliged to go public within 
the set deadline.   
 
Currently there are four representative offices from foreign financial institutions 
incorporated in Japan (MUFG and Sumitomo Mitsui Banking corporation) and China (Bank 
of China and Industrial and Commercial Bank of China) are operating in Mongolia.  
 
Currently 4 representative offices from foreign financial institutions incorporated in Japan 
(MUFG and Sumitomo Mitsui Banking corporation), and China (Bank o f China and 
Industrial and Commercial Bank of China) are operating in Mongolia.  
 
According to the Investment Law, there are no restrictions stated, except that any foreign 
state -owned legal entity plans to hold of 33 percent or more of the total shares iss ued by 
a commercial bank in Mongolia, the restrictions shall be applied.  
 
Page 12 , Para.33  
During the review period, the Government promoted several tax exemptions designed to boost 
foreign investment.  
 
Question : 
 
8.Please provide more information on the above -mentioned tax exemption measures.  
Answer: The tour operation companies are exempted from the VAT according to the Law, 
and it is still valid during the COVID19.  
Page 26 , Para.2.22  
The Mongolian National Chamber of Commerce and Ind ustry (MNCCI) provides a number of trade 
support services, including issuing certificates of origin.  
 
Question : 
 
9.Has the Mongolian arbitration institution ever arbitrated international investment cases? Please 
provide more information on the arbitrator pool of Mongolia.  
Answer: According to the Article 6.4 of the Law on Chamber of Commerce and Industry, 
the Mongolian Chamber of Commerce and Industry is authorized to establish and operate 
a foreign trade arbitration. There is a separate Law on Arbitration with the purpose of 
regulating relations in regard to the settlement of legal disputes through arbitration in 
accordance with international standards. Article 7.3 states that permanent arbitration in 
Mongolia may be established under the Chamber of Commerce and Industry, n on-
governmental organizations and professional associations. The Law can be found in 
English on the following link:  
https://www.legalinfo.mn/law/details/15775?lawid=15775  
Page 102 , Para.4.54  
The Law stipulates that the level of state ownership may vary, depending on the financing of the 
exploration, its nature, and whether the mineral deposit qualifies as a "strategically important 
mineral deposit". Article 4.1.12 of the Mineral Law sta tes that a "strategically important mineral 
deposit" means a deposit that affects national security, or national economic and social development, WT/TPR/M/406/Add.1  
 
- 36 - 
 
  or produces or can produce more than 5% of annual GDP. Compulsory state ownership clauses can 
be replaced by a dditional royalties.  
 
Question : 
 
10.Please provide more information on policies and plans related to uranium resource development.  
 
Answer: The Nuclear Energy Law and the Minerals Law regulates the issue of using the 
uranium deposits are considered  to be the strategically important deposits regardless of 
their contribution to the Gross Domestic Products. An investment agreement is 
established to develop the uranium deposit and determine the state’s share. The law 
regulates that if the expl oration work was conducted with the private fund, the state owns 
34 percent of the legal entity. Currently, there isn’t any uranium deposit in operation. 
However, Badrakh Energy LLC, French company is working to launch a pilot plant.  
 
11.Please provide mo re information on relevant laws, regulations and policies concerning foreign 
companies participating in the development of uranium mines in Mongolia.  
Answer:  
Laws and regulations of the mining sector  
1. The Minerals Law (The Revision  of the Law)  
2. Law on Nucl ear Energy  
3. Regulations on Compliance with the Law on Nuclear Energy  
4. Investment Law  
 
Policy  
5. State Policy on the Use of Radioactive Minerals and Nuclear Energy  
 
Related Rules and Regulations  
6. Radiation Safety Rules for Exploration of Radioactive Minerals  
7. Management Rules for Radioactive Waste from Ore Mining and Processing  
8. Basic Rules for Radiation Protection and Safety   
9. Radiation Safety Rules to be followed in Radioactive Minerals Exploration and 
Processing Activities  
Page 106 , Para.4.72  
The Petroleum Law distinguishes between two main categories of petroleum products, conventional 
"oil" (i.e. crude oil, natural gas, and refined petroleum) and "unconventional oil" (i.e. oil sands and 
shale). Conventional and unconventional oil ex ploration activities are carried out on the basis of a 
PSA. The MRPAM negotiates and enters into a PSA with investors, upon approval from the 
Government, to conduct oil exploration in the specified exploration field.  
 
Question : 
 
12.Apart from signing Produ ct Sharing Agreements, are there any other cooperation methods 
available for foreign investors in the oil and gas industry?  
Answer: The Parliament of Mongolia has approved the Law of Supporting Oil refineries on 
29th January 2021 in connection with the imp lementation of the oil refinery project. The 
law stipulates that the oil refinery may conduct oil exploration and exploitation activities 
to maintain the stability of crude oil reserves, and that these activities may be carried out 
in cooperation with fore ign and domestic companies. Within the framework of this law, 
foreign investors can cooperate with oil refineries in the form of Product sharing 
agreements and other form in the field of oil exploration.   
 
Page 12 , Para.4.171  
Airports services are governed by the Civil Aviation Law, 1999. The Law allows for public private 
partnerships (PPPs), build -operate -transfer (BOT) schemes, and concessions, as exemplified by the 
NUBIA project.  
 
 
 WT/TPR/M/406/Add.1  
 
- 37 - 
 
  Question : 
 
13.Please provide information on the airport management system, the regulations on the ownership 
and control of civil airports, and other laws and regulations related to airports in Mongolia.  
Answer:  
The Mongolian Civil Aviation Authority (MCAA) is an Implementing agency of Mongolia. 
The main roles of the MCAA:  
 
1. Aviation Safety and Economic Regulator.  
2. Provider of all Airport Services in Mongolia.  
3. Provider of all Air Navigation Services in Mongolia.  
MCAA has established within its organization, National civil aviation center . The 
Department of Airport Services of National civil aviation center is the charge of the 
project, exercises functional control all over Airport’s staffing and operations at the 
airports. National civil aviation center  is dedicate d to provid ing safe and se cure airport 
operation services to all international/domestic airport and airline companies . 
 
As of today, 2021, there are 23 airports /public use -domestic 19, private use 3, 
international 1/in Mongolia, all public airports are 100 % state owned and managed  by 
the MCAA . 
New Ulaanbaatar International Airport Construction in Hushigiin Hondii, Sergelen soum 
of Tov aimag, is funded by a loan from Japan Bank for International Cooperation. New 
Ulaanbaatar International Airport is scheduled to open its operation on  the 1st of July 
2021. NUBIA owns and operates by the New Ulaanbaatar  International Airport LLC under 
the "Concession Agreement"  
PART III. OTHER QUESTIONS  
14.How does Mongolia define public air transport and general aviation? Are there any different 
economic and safety management policies and relevant laws and regulations on public air transport 
and general aviation?  
There are no separate safety management policies and relevant law. Same safety 
management policies and law are appli ed on the public air transport and general aviation. 
The activities of general aviation are applied with no restriction under the MCAR 
(Mongolian civil aviation rules). There is no economic policy on the general aviation.  
15.Please introduce Mongolia’s tariff and charging management policies and modes on both public 
air transport and general aviation.  
The MCAA reviews and approves the tariffs of air navigation services and airport security 
services charges according to the Procedure of Regulated service charge, аpproved by the 
Minister of Road and Transport Development in 2019. As for the ground handling service, 
the service provider sets  its own tariffs.  
16.What support policies does the Mongolia government have for civil air ports, regional aviation, 
international routes, general aviation, cargo transport and remote areas? Please briefly introduce 
the source of funds, and the standards as well as methods of subsidies.  
Improvement and expansion of airports’ capacity is funded f rom the state budget with 
phases. According to the long -term national development policy, approved by the 
Parliament of Mongolia, the state will promote category upgrade of domestic airports 
through 2021 -2030 with state budget. Domestic air transport subsi dies are provided for 
the purpose of reviving some domestic routes within the framework of the "Essential Air 
Services Program". This program is funded from the state budget.  
17.Are there any policies that regulate domestic air transport subsidies? Are th ere any policies that 
restrict other countries’ air transport subsidies?  WT/TPR/M/406/Add.1  
 
- 38 - 
 
  Domestic air transport subsidies are provided for the purpose of reviving some domestic 
routes within the framework of the "Essential Air Services Program", approved by the 
Government Resolution No. 283 in 2019. There is no policy to limit air travel subsi dies in 
other countries, but cabotage is prohibited by the Civil Aviation Law of Mongolia.  
18.Please introduce Mongolia’s policy on slot management, and the ways and procedures for 
obtaining flight slots.  
The international, domestic flight schedules are r evised twice a year for summer and 
winter seasons.  Air carriers shall submit their flight requests to the MCAA along with the 
relevant flight schedule information. These requests are discussed at the “Slot council” 
meeting of MCAA and approves the final sc hedule of summer and winter season flight.   
19.Please introduce Mongolia’s airspace management system and the operation mode of air traffic 
control.  
Currently, Mongolian air space management is developed and planned at the MCAA and is 
approved at the Mini stry of Road and Transport Development of Mongolia. Mongolian air 
space management’s main purpose and aim is to provide safe, secure and efficient air 
navigation services while meeting international standards. We are persistent in 
developing air space for ICAO’s policy. MCAA installed 12 ADS -B and 7 SSR stations 
throughout Mongolia covering 95 percent of the territory. In addition, MCAA implemented 
10 PBN routes in Mongolia, and in the process of implementing GNSS flight procedures at 
international and loca l airports.  
20.Does Mongolia have access restrictions on foreign investments in civil aviation transport services , 
including general aviation, civil airports, air traffic control, aircraft repair and maintenance services , 
ground handling services, passenge r and freight forwarding agency services, fuel distribution 
services  etc.? Please specify the legal basis of sector management and foreign investment access 
management in the above fields. Are there any access restrictions on civil aviation other than the 
above fields? If yes, please provide the legal basis.  
There is no regulation that restricts foreign investments in civil aviation transport 
services, including general aviation, civil airports, air traffic control, aircraft repair and 
maintenance services , ground handling services, passenger and freight forwarding 
agency services, fuel distribution services.  
21.Please explain the scopes, management responsibilities and legal basis of Mongolia’s civil aviation 
authorities and other relevant authorities in anti-monopoly reviews in civil aviation.  
Answer: According to the Article 15.1.6 of the Competition Law, the Authority for Fair 
Competition and Consumer Protection determines the natural monopoly and dominant 
business entities and monitors its activities. As of today, total of three aviation companies 
have been determined as a dominant business entity in the market of international and 
local scheduled flight in their respective routes.  Therefore, these dominant business 
entities are prohibited to be engage d in the activities as stipulated in the Article 7 of the 
Competition Law.  
In accordance with the paragraph 1 of Article 8 of Civil Aviation Law of Mongolia, the 
MCCA conducts professional oversight and regulation towards the civil aviation.  
 
The MCCA op erates under the following legal regulations : 
 
- Chicago convention (S tandards  and Recommended  Practices ) 
- Civil Aviation Law of Mongolia  
- Mongolian Civil Aviation Rules (MCAR)  
- ICAO Circulars  
- Other relevant order, rules, manuals, standards  
22.At present, foreign companies still need special permits to carry out domestic refined oil trade 
in Mongolia, and the wholesale and retail of gasoline and diesel oil are monopolized by Mongolian 
state-owned enterprises. Does Mongolia have any plans to open these sectors to foreign capital?  WT/TPR/M/406/Add.1  
 
- 39 - 
 
  Answer: Currently, Mongolia is importing petroleum products /gasoline, diesel/. Activities 
related to the domestic sale of petroleum products are regulated by the Law on Petroleum 
Products /gasoline, diesel/. Article 7.2 of the Law on Petroleum states that a foreign legal 
entity that supplies more than 30 percent of petroleum products to Mongolia shall be 
prohibited from selling its products in the domestic market throu gh a legal entity with its 
investment and a unit under its jurisdiction. This provision applies to only foreign legal 
entities that alone supply more than 30 percent of Mongolia’s total gasoline and diesel 
consumption and does not apply to other entities w hich are able to carry out these kinds 
of activities.  
 
  WT/TPR/M/406/Add.1  
 
- 40 - 
 
  EUROPEAN UNION  
WT/TPR/S/406 – WTO Secretariat  Report  
SUMMARY  
Paragraph 21, Page 10.  
"The Public Procurement Law of Mongolia, adopted in 2011 and subsequently amended, regulates 
all stages of the procurement process. The most recent amendments entered into force in 2019, and 
introduced significant changes to the public procurement process by: (i) implementing a 
preconditioned procurement procedure and a "green procurement" concept; (ii) clarifying the roles 
and responsibilities of procurement inspectors; and (iii) providing for an additional condition for 
forfeiting bid securities. No data are available regarding foreign suppliers' participation in the public 
procurement market."  
EU Question N°1  
Could Mongolia explain why no data are available regarding foreign suppliers' participation in the 
public procurement market? Could Mongolia specify whether and how new Public Procurement Law 
improves transparency of the procedures?  
Answer: The Government o f Mongolia introduced the e-procurement system in 2017.  The 
system can generate data regarding the participation of foreign suppliers in public 
procurement but as for the traditional/paper -based procurement, the subject matter data 
is not collected. The government is aiming to achieve a 100% electronic procure ment goal 
in the coming decade.  
 
Following amendments were made in the PPLM in 2019 in order to improve transparency 
of the procedures :  
i) Expanded the scope of the PPLM by revoking the PPLM exempt entities;  
ii) Procuring entities are mandated to publish fulfilment of contractual obligations 
and quality of performance by the contractors bi -annually in the e -procurement 
system ;  
iii) The procedure for disclosing the bid evaluation documents to the participating 
bidders became effective following the PPLM amendment enabling participating 
bidders to review and challenge the successful bidder's bid and the bid evaluation 
report.  
Related clauses  of the PPLM .  
46.1.6. monitor the performance and quality of contractual obliga tions and publish results 
in the e-procurement system bi-annually.  
52.1.3. draft the policies and procedures, guidelines, instructions, manuals, and standard 
documents of procurement, and approve the procedure for e -procurement, the procedure 
for disclosi ng bid evaluation reports to the participating bidders , the procedure for e -
procurement planning, publishing of bid announcement and results, and procedure for 
using information technology in public procurement;  
2 TRADE AND INVESTMENT REGIMES  
2.1 General Framework  
Paragraphs 2.10 - 2.13, Page 25  
"The 2019 constitutional amendments also include three important changes related to the 
judiciary. First, the amendments fix the membership of the Judiciary General Council at 
10, with a non -renewable four-year term. The Council selects Supreme Court judicial 
candidates and presents them to Parliament. These candidates are then appointed by the 
President. The Council also proposes judges of other courts to the President for 
appointment. Five of the 10 m embers are directly elected from judges, and the other five 
are appointed through open nomination. In addition, the chairperson of the Council is 
elected by its members, instead of appointed by the President. Reports on the Council's 
activities related to judicial independence are submitted to the Supreme Court. Second, WT/TPR/M/406/Add.1  
 
- 41 - 
 
  the amendments establish a new constitutional body, the Judicial Disciplinary Committee, 
which decides on the suspension or removal of judges and the imposition of other 
disciplinary sanctio ns. The composition and the term of the Committee are regulated by a 
future law soon to be discussed by Parliament Third, the amendments also allow 
Parliament to establish courts with jurisdictions over several aimags and soums, which 
allows the even distr ibution of caseloads, the easy creation of specialized courts, and 
improved access to courts."  
EU Question N°2  
Could Mongolia inform about implementation of constitutional amendments as regards ensuring the 
independence of the judiciary affecting the bus iness environment?  
Answer: On January 15, 2021 the Parliament of Mongolia adopted the revised Law on 
Courts at its plenary session. It was a major step towards a fair and independent judicial 
system of Mongolia which is free from any influences and interests. The revised law  
strengthens the legal environment for the judiciary and affirms the entitlement of 
everyone to a fair trial by independent and impartial courts. Moreover, the revised law 
enables digitalization of the court system in order to make it accessible and improv e 
efficiency in trial procedures. Further, the relevant amendments will be made to 
procedural laws accordingly.  
2.2 Trade Policy Formulation and Objectives  
Paragraph 2.19, Page 25  
"The General Agency for Specialized Inspection (GASI) is responsible for,  inter alia, the 
inspection of imported and exported foods and products of plant or animal origin, and for 
ensuring their compliance with standards; enforcement of laws and regulations related to 
trade, industry, services, geology, and mining; and supervis ing compliance with 
standards."  
EU Question N°3  
Could Mongolia inform about its efforts to pursue ratification of ILO Labour Inspection Convention 
No 81 and ILO Labour Inspection Convention (Agriculture) No 129?  
Answer: Mongolia is still working to pursue ratification of the ILO's Labour Inspection 
Convention No 81, ILO Labour Inspection Convention (Agriculture) No 129. A working 
group was established to facilitate the implementation of international labor standards at 
the national level in 2006 and 2016, respectively. Within this working group these 
Conventions have been officially translated and certified by the Ministry of Justice. The 
concept of the draft law to ratify the conventions has been developed and submitted to 
the Cabinet three times. Th e issue was also included in the 2019 -2020 work agenda of the 
National Tripartite Committee on Labour and Social Consensus under the Ministry of Labor 
and Social Protection and furthermore it has been discussed four times at the meeting 
consisted from the representatives of the Government organization, Mongolian 
Employers' Federation and the Confederation of the Mongolian Trade Unions, respectively.  
Table 2.2 Main trade -related laws, Page 26  
"Law on the Legal Status of the "Altanbulag" Free Trade Zone"  
EU Question N°4  
Could Mongolia give an update on the Free Trade Zones? Are these zones operational?  
Answer: "Mongolia's free zone (FZ) regime of 2002 was established with a view of 
developing export -oriented business and supporting exports in general, and in addition  
attracting new trade and investment opportunities. The main law governing F ree zones  
was revised in 2015. The amendments to the new law  aimed to  encourage  public and 
private partnership  in the development of the free zone, provide more tax and non -tax 
incentives to investors, and create a legal basis for the establishment of cross -border free 
zones with neighboring countries.  
 WT/TPR/M/406/Add.1  
 
- 42 - 
 
  Mongolia's long -term development policy  Vision-2050  and the Government's action plan 
for 2020 -2024 put forward policy strategies to expand economic cooperation zones and 
permanent cross -border trade network s along with border areas in selected regions  which 
are physically  close to potential markets , natural resources  and at the same time have 
labor supply  and industrial development  potential.  
Zamiin -Uud Free Economic zone : 
The Parliament of Mongolia decided to establish the Zamiin -Uud Free Economic zone by 
its resolution No.17 of 2004 . The zone occup ies 900 hectares in the territory of Zamiin -
Uud soum of Dornogovi aimag. The Zamiin -Uud Free Zone sits at the international road  
and trade network which connect s Europe and A sia. Mongolia trades 63.4 percent of its 
foreign trade with China, and about 90 pe rcent of imports and 80 percent of exports go 
through Zamiin -Uud.  
 
At Zamiin -Uud zone, Detailed Environmental Impact Assessment, Design and Budget for 
the Constructions of Administrative Offices and  Design and Budget for Road Construction 
connecting  the free zone territory with Zamiin -Uud soum , Soil Engineering Geological 
Survey, Urban Planning Study, as well as  water exploration and supply survey s had been 
respectively done. Based on the se surveys, the construction of heating, electricity,  water 
supply  systems , and wastewater treatment plant, roads and communication 
infrastructure has been completed on 300 hectares of territory of the zone . 
 
Up unt il today, 58 companies have been licensed to operate in Zamiin -Uud Free Zone in 
sectors such a s transportation, logistics, trade and services, manufacturing  and tourism . 
The launch of Zamiin -Uud Free Zone in the fall of 2021 is expected to accelerate the zone 
development  to full extent.  
"Altanbulag" Free Zone  
The "Altanbulag" Free Zone (FZ) became  operational on June 22, 2014 in accordance with 
the Government Resolution No. 153 of 2014. It is located in Selenge province, with size 
of 500 hectares, to the north it borders with the Republic of Buryatia of Russian Federation 
and the East Siberian econ omic regions. The "Altanbulag" FZ is located at the junction of 
the international road network AH -3 adjacent to the Altanbulag port, making it the 
shortest roadway connecting Asia and Europe. Infrastructure of "Altanbulag" FZ:  
- Temporary power supply line;   
- Pure and sewage water trunk line, water storage reservoir;  
- Improved dirt (unpaved) road;  
- Flood protection dam.  
Currently, 126 entities are registered at the FZ, 19 of which are continuously operating in 
trade and services sector. In 2020, out of 5.45 million USD worth of imported goods, 5.23 
million USD in goods were sold. In the same year, the total number of the passengers 
entering the FZ was 90,340 and the number of vehicles was 27,425. In accordance with 
the Action Program for the Government of Mongolia for 2020 -2024, there are plans to 
renew and approve the general plan for development of the "Altanbulag" FZ, e xpand 
electricity supply in the region, province and soum, connect the "Altanbulag" FZ to the 
customs tele -control integrated system. Furthermore, in line with Mongolia's five -year 
development guidelines for 2021 -2025, there are plans of construction of ro ads and 
logistics center inside the FZ.  
Tsagaannuur free zone : 
Tsagaannuur free zone has 708.4 ha area in total and is located at Tsagaannuur soum  of 
Bayan -Ulgii aimag.  Tsagaannuur free trade zone is at the 60 km north of the aimag center, 
28 km south of t he border with Russia . The d istan ce from the capital city is 1700 km, from 
the border of China is 212 km  and from the border of Kazakhstan /through Russia/ is 190 
km. Currently Tsagannuur free zone functions under the authority of the Deputy Prime 
Minister  of Mongolia.  It has advantageous location with its proximity to Russia, China and WT/TPR/M/406/Add.1  
 
- 43 - 
 
  Kazakhstan. It has great potential in cross border trade, investment and becoming a 
logistic harbor. Given natural beauty of Bayan Ulgii aimag, its  unique tradition and cult ure as 
well as potential of developing cross border travel, tourism is another attractive feature 
of Tsagaannuur free zone.  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
Paragraph 2.25, Page 28  
Mongolia has been a WTO Member since 1997, and participated in negotiations and the 
regular work of the WTO committees during the review period. It ratified the WTO Trade 
Facilitation Agreement (TFA) on 28 November 2016, and took steps to join the WTO 
Agre ement on Trade in Civil Aircraft. In October 2018, it passed domestic legislation in 
this respect.  Mongolia obtained Observer status in the WTO Committee on the Agreement 
on Government Procurement (GPA) on 23 February 1999 with a view to initiating 
negotia tions for membership as per its Protocol of Accession to the WTO; there have been 
no further initiatives since then, and Mongolia has not yet applied for accession to the 
GPA.  
EU Question N°6  
Does the Mongolian administration have a plan for an approxima te timeframe for joining the GPA in 
mind?  
Answer: The subject matter is in the early stage of internal discussion of the cabinet.  
2.3.2 Regional and preferential agreements  
Paragraph 2.30, Page 29  
"Mongolia concluded a joint feasibility study on a poss ible EPA with the Republic of Korea, 
and it is in the process of conducting a joint feasibility study for a potential FTA with China. 
Mongolia also proposed to launch a feasibility study for an FTA with the Eurasian Economic 
Union (EAEU)."  
EU Question N°7   
Could Mongolia provide details and timeline for the next stages of its negotiations on a possible EPA 
with the Republic of Korea, ongoing joint feasibility study for a potential FTA with China and on the 
launch of a feasibility study for an FTA with the Eurasian Economic Union (EAEU)?  
Answer: Mongolia is currently working with the Korean side to further a joint feasibility 
study on a potential free trade agreement between the two countries. To this end, the 
sides are planning to initiate internal legal p rocedures on both sides. Once the internal 
legal procedures are completed, the parties will be able to discuss the timeline for the 
negotiations.  
Mongolia and the Eurasian Economic Union established a joint feasibility study working 
group on possible FTA on September 2020 and held an online consultative meeting on 
October 2020. Currently, both parties agreed to complete the joint plan of the feasibility 
study at the end of 2021, unless otherwise unforeseen circumstances should arise. 
Negotiati ons will depend on the outcome of the study from both parts.  
Mongolia and China established a joint feasibility study working group on a potential FTA 
between the two countries on September 2020 and held two meetings in Beijing and 
Ulaanbaatar in 2018 and 2019 respectively. Parties exchanged a draft text of the report 
of joint feasibility study on a potential FTA between China and Mongolia at the end of the 
2020.  
Paragraph 2.31, Page 29  
According to the Secretariat report, since the entry into force of Mo ngolia's Economic 
Partnership Agreement (EPA) with Japan, imports into Mongolia from Japan have 
increased steadily.  
 
 WT/TPR/M/406/Add.1  
 
- 44 - 
 
  EU Question N°8  
Could Mongolia provide detailed statistics on the impact of its Economic Partnership Agreement (EPA) 
with Japan on Mongo lian imports?  
Answer: Since the EPA between Mongolia and Japan entered into force in 2016, the total 
trade turnover between the two countries doubled and reached USD600.9 million in 2019. 
Accordingly, Mongolia's imported goods originating from Japan consis ted of motor cars 
and other motor vehicles, machinery and spare parts, which was accounted for 97.5 
percent of the bilateral trade in 2019.  
HS 
code  Product imported from Japan (as of 2019)  Amount 
(thousand US$)  
2402 Cigars and cigarettes.  4,636.5  
3304 Beauty or make -up preparations and preparations for the care of the skin.  3,224.4  
4011 New tyres.  28,681.7  
4012 Retreaded or used pneumatic tyres of rubber, tyre treads and tyre flaps.  8,186.0  
8413  Pumps for liquids, whether or not  fitted with a measuring device; liquid 
elevators.  3,008.2  
8429 Self-propelled bulldozers, angledozers, graders, levellers, scrapers, 
mechanical shovels, excavators,tamping machines and road rollers.  48,852.1  
8431 Parts suitable for use solely or princip ally with the machinery.  6,351.0  
8703 Motor cars and other motor vehicles principally designed for the transport of 
persons .  356,638.0  
8704 Motor vehicles for the transport of goods.  46,199.6  
8708 Parts and accessories of the motor vehicles.  7,029.5  
9018 Instruments and appliances used in medical, surgical, dental or veterinary 
science.  5,088.0  
z - Other  67,583.5   
Total amount  585,478.4  
Source:  http://customs.gov.mn/statistics . 
2.4 Investment Regime  
Paragraph 2.35, Page 30  
The Secretariat report mentions the goals of the Mongolian Government Action Program 
2016 -20, many directly related to foreign investment.  
EU Question N°9  
Could Mongolia inform what measures it took to achieve the goals of the Government Action Program 
2016-20, and about status of their implementation? Could Mongolia also explain what are the foreign 
investment -related goals of the Government Action Program 2020-24 and what measures Mongolia 
envisages to take to achieve them?  
Answer: Detailed information on the criteria and evaluation of the implementation of the 
Action Plan of the Government of Mongolia for 2016 -2020 is available at : 
http://unelgee.gov.mn/open/ . 
In the "Action Plan of the Government of Mongolia for 2020 -2024", there are the following 
three objectives and measures related to foreign investment.  
▪ Article 3.1.17. Carry out infrastructure construction work in free zones, create 
favourable conditions for the development of trade, services and light industry, 
and support foreign and domestic investors.  
▪ Article 4.4.6 Improve the protection of private property, investment and 
intellectual property rights, create a favo urable environment for doing business, 
improve the legal environment for e -contracts and agreements, consider e -
contracts and agreements as an evidence, digitalize some court activities and 
improve the legal environm ent to support the private sector and wealth creators.  
▪ Article 4.5.3 Protect the interests of foreign investors, attract foreign investment 
in priority sectors such as infrastructure, mining, energy, food, agriculture and 
tourism, and provide soft loans an d grants for mega projects.  
Paragraph 2.36, Page 30  
"As FDI remains highly concentrated in the mining sector, the Mongolian Government is 
currently working on a draft Investment Policy Statement of the Government of Mongolia, WT/TPR/M/406/Add.1  
 
- 45 - 
 
  with the collaboration of gov ernment and private sector stakeholders, which plans to 
identify and define new  non-mining sectors that have potential for attracting FDI, 
eliminate investment barriers, and promote efficient long -term FDI."  
EU Question N°10  
Could Mongolia clarify what is the timeline for the drafting, adoption and implementation of the draft 
Investment Policy Statement? Is it possible, and if so, through which channels, for foreign private 
sector stakeholders provide relevant input to the gov ernment during the drafting process?  
Answer: Based on the assessment of the implementation of the Investment Law and the 
research of International Investment Policy, National Development Agency is working to 
create a more favorable legal environment by ame nding the law. After the draft law is 
approved by the State Great Khural, the " Investment Policy Statement " will be  discussed  
at the Cabinet meeting.  
 
The draft of Investment Policy Statement  was discussed and relevant recommendations 
were reflected at the  meeting of the Public -Private Consultative Committee on January 
28, 2020. It will soon be posted on the National Development Agency's official website in 
order to  receiv e feedbacks from investors and the public.  
Paragraph 2.38, Page 31  
"In line with Sect ion 2.1.7 of the Mongolia Sustainable Development Vision 2030, which 
was adopted in 2016, the Government plans to create a favourable business environment 
through improving services, developing transportation and logistics networks, simplifying 
the issuanc e of special licences, and digitalizing and improving tax payments. All of these 
aim to improve the business climate and attract investors."  
EU Question N°11  
Could Mongolia inform which measures has it taken and plans to take, implementing Mongolia 
Sustainable Development Vision 2030, to improve the business climate and attract investors?  
Answer: Mongolia implemented 22 goals of 7 sectors in the field of susta inable economic 
development of the "Mongolian Sustainable Development Concept -2030" development 
concept paper. More information on the criteria and evaluation of implementation is 
available at : http://unelgee.gov .mn/open/ . 
 
The criteria and evaluation of the implementation of "Sustainable Development Vision of 
Mongolia -2030" and the goals of Mongolia's Sustainable Development are reflected in the 
appendix to the resolution of the State Great Khural of Mongolia on "Approval of the 
Sustainable Development Vision of Mongolia -2050". Therefore, the Resolution No. 19 of 
the State Great Hural of Mongolia dated February 5, 2016 on "Sustainable Development 
Vision of Mongolia -2030" has been annulled.  
Paragraph 2.40, Page 31   
"Mongolia's main law on investment remains the Investment Law, 2013, which did not 
undergo significant revision. This Law has provisions for more equal treatment between 
domestic and foreign investors, a point that improved on the previous law, although a 
minimum threshold remains for foreign investors retaining more than a 25% share."  
EU Question N°12  
Could Mongolia inform if it plans to review the minimum threshold? Does Mongolia have information 
on its impact limiting investment into Mongolia?  
Answer: Based on the assessment of the implementation of the Investment Law and the 
research of International Investment Policy, National Development Agency is working to 
create a more favorable legal environment by amending the  existing investment law. In  
the framework of this work, research is now underway and it will  change the investment 
threshold and size.  
 
 WT/TPR/M/406/Add.1  
 
- 46 - 
 
  Paragraph 2.42, Page 32  
"As part of its investment framework, Mongolia had 44 BITs in place as at the end of July 
2020, most of which have been in place for many years (Table 2.4). During the review 
period, one new  BIT with Canada entered into force in 2017. The Agreement between 
Mongolia and Canada on the Promotion and Reciprocal Protection of Investment is 
described as having more detailed provisions on dispute settlement and preconditions for 
filing a case for arbitration compared to earlier BITs signed by Mongolia. As part of its 
investment policy, Mongolia plans to establish new BITs and update existing ones in 
accordance with the goals a nd principles set forth in the model Agreement on Investment 
Promotion and Mutual Protection, which was approved by the Government in 2019."  
EU Question N°13  
Could Mongolia specify which new BITs it plans to conclude and which existing ones it plans to 
update? Could Mongolia also specify what are the respective timelines for these changes? Please 
also provide the hyperlink at which the model Agreement on Investment Promotion and Mutual 
Protection can be found.  
Answer: With its resolution on March 6, 2019 the Government of Mongolia approved the 
Model agreement of bilateral investment treaty. According to this resolution the Minister 
for Foreign Affairs of Mongolia and the Chairman of National Development Agency would 
draw up an action plan for updating and modernizing existing bilateral investment treaties 
in light of the Model agreement and report to the Government on its implementation.  
 
Accordingly, the Ministry of Foreign Affairs is developing the action plan in cooperation 
with the National Development Agency. The main purpose of the action plan is to set out 
concrete Steps for updating existing BITs prioritising existing agreements which one 
should be primarily updated or remain in force as it is. The action plan has not been 
finalized. Therefore, at th is moment, respective timelines for the changes are not definite.  
 
Negotiations are currently ongoing with the Republic of Korea, the Republic of Vietnam  
and the Republic of India on updating and concluding the investment agreements.  
 
There is no hyperlink at which the model Agreement on Investment Promotion and Mutual 
Protection can be found. However, for the reference of the EU delegation, the Model 
Agre ement text is attached hereby.  
THE QUARANTINE 
LAW OF  MONGOLIA.pdf
 
Paragraph 2.45, Page 33  
"In 2017, the Public -Private Consultative Committee was established under the purview 
of the Investor Protection Council to provide an avenue for discussing investmen t-related 
draft legislation and policy documents with affected parties."  
EU Question N°14  
Could Mongolia confirm whether foreign investors may participate in the Public -Private Consultative 
Committee?  
Answer: The 50 percent of the members of the Public -Private Consultative Committee 
consist of the relevant ministries and agencies, and the remaining 50 percent of members 
consist of the heads of the private sector and non -governmental organizations. 
Representatives of the private sector represent th e interests of foreign and domestic 
investors.  
Paragraph 2.46, Page 33  
"In terms of policy developments, the Invest in Mongolia One -Stop Service Centre (OSSC), 
under the NDA, for foreign investors was established in February 2019 to facilitate the 
delivery of public services to investors, and to provide quick and easy access to foreign 
investors to satisfy their needs and increase confidence levels. The OSSC provides 62 
types of public and private services, and has provided more than 40,000 services since its WT/TPR/M/406/Add.1  
 
- 47 - 
 
  inception. Ensuring transparency of information on a  wide range of g overnment services 
and providing these services from a single location make it easier for investors, save time 
and money, and improve their satisfaction. In the future, within the framework of the 
World Bank Group's Smart Government project, the OSSC will be digitalized and an 
Electronic One -Stop Shop Service will be introduced. The system is expected to be 
commissioned in 2021."  
EU Question N°15  
Could Mongolia specify what types of services the Invest in Mongolia One -Stop Service Centre 
(OSSC) provides to  foreign investors?  
Answer: The main goal of the One -Stop Service Center is to provide comprehensive and 
efficient services from the government agencies such as General Authority of State 
Registration, Mongolian Immigration Office, General Department of T axation, Social 
Insurance Agency and National Development Agency for foreign invested entities in 
Mongolia through a single window system. These services included as shown below:  
▪ Provide information and advisory services on investment legal framework  
▪ Inves tment tax and non -tax incentives  
▪ SIRM /Systematic Investor Response mechanism/ - Maintain an e -system for 
Investor's grievance related to the public services  
▪ Provide all advisory and procedural services of registration, verification of legal 
entity, amendm ents, reference, description, investor's card, and other services to 
the legal entity with foreign investment  
▪ Provide tax information and advice, registration of taxpayer, digital signature, 
reference, description, tax statement, tax collection of motor vehicles of foreign 
invested companies and investors  
▪ Provide information and advice related to visa, visa issuance, residence 
permission, temporary visitor's registration, and visa extension, etc.  
▪ Provide information and advice related to social insu rance registration, reference, 
and receipts of statements from foreign invested companies.  
These services  would be available through the national e -service portal E -Mongolia later 
on. 
Paragraph 2.48, Page 34  
"Since 2008, the Government has identified mini ng, information and technology, 
agricultural production, and tourism as priority sectors. More recently, the NDA, in 
cooperation with other ministries, has been working to develop a draft document 
identifying plans and strategies to increase the benefit of  FDI and to attract it in particular 
sectors, including mining, processing, food, agriculture, light industry, energy, roads, 
transportation, logistics, tourism, and information technology."  
EU Question N°16  
Could Mongolia provide more information on the  current stage of development of the draft document 
and the envisaged timeline for its adoption and implementation? Is it possible, and if so, through 
which channels, for foreign investors to provide relevant input to the government during the drafting 
process?  
Answer: In the framework of the objective of the Government of Mongolia in attracting 
and promoting foreign investment in the agricultural sector in 2021, the National 
Development Agency is working on the draft of the "Action Plan for attracting and  
promoting foreign investment in the agricultural sector", which is planned to be approved 
by the Chairman of the National Development Agency in the first quarter of 2021. Under 
the draft of the Action plan, there are activities to organize events to promo te investment 
seeking projects in the agricultural sector, create a project database, and organize 
training and events to build the capacity of local businesses interested in attracting 
foreign investment in the agricultural sector. The draft of the Action  plan will be discussed 
by the Public -Private Consultative Committee and will reflect relevant recommendations 
from foreign investors.  WT/TPR/M/406/Add.1  
 
- 48 - 
 
  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Paragraph 3.1, Page 35  
In 2017, a new draft Customs Law was proposed, but as of October 2020, it had not yet 
been approved.  
EU Question N°17  
Could Mongolia provide update on the timeline for the approval of the new Customs Law? The EU 
would like to raise the attention of Mongo lia that it is of the utmost importance to have in place a 
transparent and efficient regulatory framework governing its imports from third countries.  
Answer: A  new draft of Customs Law of Mongolia is expected to be approved in 2022. The 
Customs General Administration of Mongolia has established a working group, which is 
currently in the process of drafting a law in line with the international conventions, 
treaties and other agreements which Mongolia has acceded. A new draft Customs La w will 
mainly focus on transparent and efficient regulatory framework for international trade 
movement. However, there is lack of knowledge and expertise in developing regulatory 
framework governing its imports from third countries.   
3.1.1.2 Customs valuat ion  
Paragraph 3.13, Page 38  
"The rules for customs valuation are contained in Chapter 4 of the Law on Customs Tariffs 
and Customs Taxes, 2008, and did not undergo any significant modification during the 
review period. Mongolia has never notified its cust oms valuation rules to the Committee 
on Customs Valuation."  
EU Question N°18  
Could Mongolia please indicate if it will notify its customs valuation legislation to the Committee on 
Customs Valuation?  
Answer: The Customs tariff and Customs tax Law has not been revised since 2008. The 
chapter 4 of this Customs tariff and Customs tax Law determines the rules of customs 
valuation. Therefore, the latest version of the Customs tariff and Customs tax Law and 
Customs law will  be notified to the WTO Committee o n Customs Valuation within March 
2021.  
3.1.3.1 Bound and applied rates  
Paragraph 3.34, Page 44  
"The applied tariffs range from zero to 40%, with spirits accounting for the peak tariffs 
at 40% (Table 3.5). The sectors with the highest averages are beverage s, spirits and 
tobacco, and dairy, with nearly all other sectors averaging around 5%. Most 
prohibited/restricted lines are in the chemicals sector. The lowest duty rates, i.e. 0%, are 
found in the live animals and products, mineral products, machinery, and  precision 
equipment sectors. Relatively few tariffs are duty -free (0.9%), while 94% are applied at 
5% (Chart 3.4). The next largest category is prohibited/restricted goods; the category 
accounts for 1.8% of all tariff lines."  
EU Question N°19  
What justification does Mongolia provide for the very high tariffs on imported spirits (40%), well 
above average, which, added to discriminatory taxation, incentivizes illicit sales over legitimate 
imports?  
Answer: Mongolia applies customs tariffs on impo rted spirits within the bound rate of its 
accession commitments.  
EU Question N°20  
How does Mongolia justify the foreseen imposition of a 3% levy on net income of legal entities 
involved in manufacturing and importing alcoholic beverages, which comes on t op of customs duties, 
the excise tax & VAT?  WT/TPR/M/406/Add.1  
 
- 49 - 
 
  Answer: The tax amount varies depending on profit value and not on specific business 
sector. According to the Law on Income tax of a business entity, it is stated that 1 -25% 
income tax is imposed to the legal en tities depending on their production profit value. 
Detailed information can be found on the following link 
www.legalinfo.mn/law/details/14407 /Mongolian/ .  
EU Question N°21  
Bearing in min d Article 2.2 of the TBT Agreement, how does Mongolia justify the proposed prohibition 
for license holders with a right to serve alcoholic beverages from selling or serving alcoholic 
beverages containing more than 35% ethyl alcohol in whole bottles or in o riginal packaging, which 
may create a disproportionate and unnecessary obstacle to international trade?  
Answer: The draft law on controlling the circulation of alcohol and combating alcoholism 
is on the agenda of the 2021 session of the Parliament. Accord ing to the internal process 
rules and regulations there are several procedural stages, including receiving comments 
from public and relevant ministries once the draft law could be submitted to the Cabinet 
decision making, which then the Parliament process starts with several discussions at the 
Standing committee level.  
The initial draft of the law, submitted on September 10, 2020, stated several provisions 
which the MFA and relevant business associations expressed the concerns due to WTO 
compatibility. Sub sequently the working group responsible for drafting the law, received 
the comments and deleted the section, so it does not conflict with the WTO agreement.  
EU Question N°22  
When will Mongolia notify the relevant WTO Committees on the draft law on alcohol?  
Answer: The draft law on controlling the circulation of alcohol and combating alcoholism 
is on the agenda of the 2021 session of the Parliament. According to the internal p rocess 
rules and regulations there are several procedural stages, including receiving comments 
from public and relevant ministries once the draft law could be submitted to the Cabinet 
decision making, which then the Parliament process starts with several d iscussions at the 
Standing committee level. Considering these procedural stages, Mongolia will notify the 
relevant WTO committee in timely manner.  
3.1.4.2 Excise  
Paragraph 3.45, Page 52 (See also Paragraph 3.46 on Page 52 and Table 3.12 on page 53)  
"Mongo lia's excise duties have not undergone significant change since the last Review, 
although there were some modifications. Excise duties continue to be applied on alcoholic 
beverages, tobacco, gasoline, diesel fuel, passenger vehicles, and various types of g aming 
and gambling products and activities (Table 3.12). They apply to goods and services 
produced/supplied in Mongolia and to imports38, but exports of goods and services are 
exempt. Other exemptions include vodka distilled from milk and dairy products fo r home 
use, snuff tobacco, and alcohol and tobacco allowed by Mongolian Customs for duty -free 
entry for personal use of passengers. Mongolian Customs collects the duties for imported 
goods and transfers the revenues to the treasury account39; most domestic  excise duties 
are paid by the taxpayer on a monthly basis, except for on distilled spirits, which must be 
paid within two working days."  
EU Question N°23  
What justification can Mongolia provide for the significant difference between the excise tax rates 
for imported alcoholic beverages (particularly spirits) and for Mongolian milk alcohol, which seems 
to amount to tax discrimination, in contradiction with A rticle III.2 of the GATT agreement?  
Answer: According to the Law on Combating Alcoholism, an excise tax is imposed 
depending on the content of ethyl in the alcohol. The ethyl alcohol content of dairy distilled 
alcohol is several times lower than that of i mported alcohol.  
 
 
 WT/TPR/M/406/Add.1  
 
- 50 - 
 
  3.1.5 Import prohibitions, restrictions, and licensing  
Paragraph 3.49, Page 54 (See also Paragraph 3.46 on Page 52 and Table 3.12 on page 53)  
"Similar to other countries, many import (and also export) prohibitions and restrictions 
eman ate from international treaties to which Mongolia is a party, such as the Basel 
Convention on the Control of Transboundary Movements of Hazardous Waste, the Hague 
Convention for the Protection of Cultural Property, the Convention on International Trade 
in Endangered Species (CITES), the Rotterdam Convention on the Prior Informed Consent 
Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, the 
Protocol to Eliminate Illicit Trade in Tobacco Products, the Montreal Protocol on 
Substa nces that Deplete the Ozone Layer, the Single Convention on Narcotic Drugs, the 
Convention on Psychotropic Substances, the United Nations Convention against Illicit 
Traffic in Narcotic Drugs and Psychotropic Substances, the Stockholm Convention on 
Persiste nt Organic Pollutants, and the Minamata Convention on Mercury…"  
EU Question N°24  
What steps has Mongolia taken to ratify the Kigali Amendment to the Montreal Protocol on 
Substances that Deplete the Ozone Layer, and when does it intend this ratification to be completed?  
Answer: The draft law to ratify the Kigali Amendment to the Montre al protocol passed the 
last round of domestic procedure at the Government with full support to ratify it, on 
December 30, 2020. The draft law is expected to be submitted to the Office of the State 
Great Khural (Parliament) of Mongolia within March 2021 for  discussion by the standing 
committees and parliament sessions.  
EU Question N°25  
How does Mongolia intend to simplify overlapping competences and burdensome procedures of 
controls and inspections?  
Answer: Mongolian Customs has implemented a number of tra de facilitation measures, 
including risk -based customs control, post clearance audit, coordinated border 
management and Authorized Economic Operator scheme .  
EU Question N°26  
Can Mongolia clarify the overall legal framework governing import licensing proc edures? Are these 
automatic or non -automatic procedures?  
Answer: The main legal framework governing the import licensing procedures is the Law 
on Licensing of Business Activities of 2001. According to Article 6.3 of this law, a license 
shall be extended w ithin three days upon the license holder's application unless otherwise 
stated by law and the circumstances described in Paragraph 13.1 of this law have arisen. 
Article 6.4 of this law states that a license shall not be extended if its terms and conditions  
have been violated. There are also other sectoral laws regulating import licensing 
procedures. For example, entities that obtained a special license to import medical 
products to Mongolia in accordance with Article 15.12.2 of the Law on Licensing of 
Busin ess activities, are allowed to import medicines and medical devices with a single -
use import license for each import as stipulated in Article 15.1 of the Law on Medicine and 
Medical devices. In addition to the above -mentioned laws, the Law on Controlling t he 
Circulation of Narcotic Drugs and Psychotropic Substances  (Article 6.1) is also regulating 
imports of Narcotic and Psychotropic medicines.  
Paragraph 3.50, Page 55  
"Since the last Review, more products have been added to the lists of prohibited and 
restricted goods. The main change to the import licensing regime was the addition of 
firearms and ammunition in 2015."  
EU Question N°27  
Does Mongolia intend to notify the  current legal framework in compliance with Art.7.3 of the Import 
Licensing Agreement (questionnaire)?  
Answer: Like many other developing countries, Mongolia faces problems with fulfilling its 
notification obligations of the WTO Agreements. Therefore, Mon golia requested the WTO WT/TPR/M/406/Add.1  
 
- 51 - 
 
  Secretariat to provide technical assistance in developing the capacity of the Government 
officials in preparing and submitting the required notifications in 2018. Upon Mongolia's 
request, in 2019, the first activity conducted by the  WTO was the "National Seminar on 
the Agriculture Notifications" which is one of the priority areas to be improved by 
Mongolia. After the seminar, follow up actions have been taken by the MFA to intensify 
the drafting of agriculture notifications. However,  due to the spread of COVID -19, the 
activities are slowed down by the MOFALI, focusing mostly on the urgent issues to reduce 
and mitigate negative impacts of the pandemic.  
Mongolia intends to notify the current legal framework in compliance with the Impor t 
Licensing Agreement and other notifications in near future, but the time framework of 
notifications are not definite due to insufficient number of resources and unstable 
Government structure, and other concerns in Mongolia.  
Paragraph 3.54, Page 57 (See also Paragraph 3.55)  
"A number of categories of products are also subject to restriction or licensing 
requirements (Table 3.15). Licensing requirements emanate from Article 8 of the Customs 
Law, and are further expanded upon in Government Resolution No. 219 of 25 October 
2002,  as amended. As stated in the Resolution, the issuance of licences is under the 
authority of the respective state administrative body, and licences are issued for a period 
of up to one year, which may be extended for an additional year. The Resolution also  
specifies standard forms for the application and the issuance of licences, and for reporting 
to the Ministry of Industry and Trade."  
EU Question N°28  
Could Mongolia specify when it plans to notify the above -mentioned changes to the WTO?  
Answer: Mongolia  will notify the relevant WTO committee in timely manner. Please see 
the above Reply to the Question No.27.  
Table 3.15, Page 58  
The secretariat report indicates the establishment of quotas for the importation of certain 
goods. Breeding animals are particularly controlled in order to control the size of the 
Mongolian herd (in 2019: nearly 70 million heads) and to face the environmen tal 
challenges of breeding (overgrazing). However, France continues its exports of cattle to 
Mongolia to so -called "intensive" and sedentary farms, as opposed to nomadic herding.  
EU Question N°29  
How and according to what criteria are the import quotas fo r cattle set?  
Answer:  Import quotas for live cattle shall be determined based on Article 9.1 of the Law 
on Livestock Genetic Resources and Article 15.11.7 of the Law on Licensing of Business 
Activities. It takes into account the volume of food production,  demand, supply, food 
supply of other countries, regions and neighboring countries, their impact on the domestic 
market, and future forecasts.  
EU Question N°30  
What provisions were finally retained in Mongolian law? What will be the specific effects?  
Answer: The draft law on controlling the circulation of alcohol and combating alcoholism 
is on the agenda of the 2021 session of the Parliament. According to the internal process 
rules and regulations there are several procedural stages, including receiving c omments 
from public and relevant ministries once the draft law could be submitted to the Cabinet 
decision making, which then the Parliament process starts with several discussions at the 
Standing committee level.  
The initial draft of the law, submitted on September 10, 2020, stated several provisions 
which the MFA and relevant business associations expressed the concerns due to WTO 
compatibility. Subsequently the working group responsible for drafting the law, received 
the comments and deleted the section, so it does not conflict with the WTO agreement.  WT/TPR/M/406/Add.1  
 
- 52 - 
 
  3.1.6 Anti -dumping, countervailing, and safeguard measures  
Paragraph 3.57, Page 59  
"However, Mongolia established a working group, consisting of representatives from 
relevant ministries and the  Mongolian National Chamber of Commerce and Industry 
(MNCCI), that has been directed by the Minister of Foreign Affairs to develop a regulation 
on safeguard measures in compliance with the WTO Agreement on Safeguards. According 
to the authorities, the draf t regulation aims to distribute functions among departments, 
to allow it to also apply bilateral safeguard measures in line with FTAs to which Mongolia 
is a party."  
EU Question N°31  
Could Mongolia explain the current status of the working group? Could Mo ngolia clarify the timeline 
for the development, adoption, and implementation of the envisaged regulation on safeguard 
measures? Was this draft regulation notified to the WTO Safeguard Committee?  
Answer: The working group has developed a draft for safegua rd regulation which resulted 
in its adoption by the Government on January 27, 2021. Currently, the Cabinet Secretariat 
is about to issue a Letter of Officialization of the regulation. Upon receiving the Letter, the 
Ministry of Foreign Affairs, will transla te the regulation and notify members in accordance 
with the obligations under Article 12.6 of the Agreement on Safeguards to notify laws, 
regulations and administrative procedures to the Committee on Safeguards. The Ministry 
of Foreign Affairs extends its gratitude to the EU for its strong support for drafting the 
regulation through EU funded "Trade Related assistance for Mongolia" project.  
3.2 Measures Directly Affecting Exports  
3.2.2 Taxes, charges, and levies  
Table 3.16, Page 61 (Export duty for certain commodities)  
EU Question N°33  
Could Mongolia confirm that the table 3.16 is comprehensive and includes all the goods subject to 
an export tax? Could Mongolia clarify whether coal is subject to an export duty, tax or other charge?  
Answer: The table 3.16 is comprehensive. Coal is not subject to export duty. However, 
there is a charge of 1000 MNT for each 1 ton of coal exported according to the Law on Air 
Pollution.  
3.2.4 Export support and promotion  
Paragraph 3 .67, Page 63  
According to the Secretariat report, the Mongolian Export Program of 2018, aimed at 
supporting the research and marketing of priority products to be exported to foreign 
markets includes initiatives to support exports such as providing incentiv es to exporters.  
EU Question N°34  
Could Mongolia provide details on the type of incentives to exporters that are offered under the 
Mongolian Export Program? Could Mongolia provide statistics on the type and number of incentives 
that exporters benefitted under this program?  
Answer: In order to ensure cross -sectorial coordination of export promotion policies and 
its implementation, the Export Promotion Council headed by the Foreign Minister was 
established in 2019. The Council meeting is organized no less than two times per year to 
discuss the pertinent issues of the program implementation. The Council endorses 
Mongolia's Trade and Investment Roadmap 2019 -2023 which complements the objectives 
set out in the "Mongol Export Program" in supporting the domestic  producers to export 
to the international markets. The Roadmap outlines eight priority sectors that are not 
limited to traditional ones such as wool/cashmere, meat/diary but it also established 
emerging sectors of renewable energy and ICT, which has potent ial to attract investment 
and promote export in the non -mining sector.  
The Council partners with various development partners, such as the World Bank. The 
World Bank`s Export Promotion Project assists the Government of Mongolia in addressing WT/TPR/M/406/Add.1  
 
- 53 - 
 
  challenges affecting firm's capacities in terms of access to finance, quality managem ent 
and skills development.  
The Council regards the agriculture sector as one of its most priority sectors for 
diversification, considering the fact that Mongolia has significant potential in this field due 
to the large number of livestock. Mongolia's ext ensive herding culture in a free -roaming 
livestock and international demand for grass -fed beef and market opportunities offered 
by Russia and China, provide significant opportunities for Mongolia to achieve more 
balanced and sustainable economic growth. Th e export volume of non -mining products 
has reached USD 823 million in 2019 and grew by 3.4%. In 2019, Mongolia exported 
58,655 tons of meat and meat products, in which, USD 2441 million worth of sheep and 
goat meat (7,041 tons), USD 57.7 million worth of h orse meat (30,835 tons), USD 50 
million worth of heat -processed meat (18,421 tons) and USD 2.5 million worth of meat 
by-products (2,358 tons) have been exported.  
The Council and its member organizations regularly host theme Expos and Forums to 
promote exp ort and investment. The Council successfully hosted the first virtual forum 
"Export Mongolia 2020" in December 2020 with policy sessions, B2B meetings and virtual 
expo.  https://www.expomongolia.org/ . 
The incent ives which the Government provide for exporters include:  
- Mongol Export Program which promotes export production, particularly non -
mining export,  
- Accessibility of export markets through FTAs and EPAs (APTA, Mongolia -Japan 
EPA),  
- Marketing export products at international expo and trade fairs (World Expo, 
Shanghai Expo, biennial Mongolia -China Expo, ITB),  
- Export development through development partnership (Development of export 
clusters with the assistance of the EU TRAM project, WB Export development 
project focuses on export financing and skill development),  
- The Government attaches great importance to trade facilitation through effective 
TFA implementation and improved border and customs coordination,  
- Launching of Foreign trade information portal in Decem ber 2020,  
- Commitment to infrastructure projects and dry port development.  
Paragraph 3.69, Page 64  
"Mongolia's free zone (FZ) regime of 2002 was established with a view to developing 
export -oriented business and supporting exports in general, in addition to attracting new 
trade and investment opportunities. According to the report, the main law governin g FZs 
was revised in 2015, replacing the previous law from 2002. The changes introduced in the 
revised law were designed to improve the cooperation between public and private entities 
in developing FZs."  
EU Question N°35  
Could Mongolia provide more information about operation of the Free Zones? In particular, could 
Mongolia clarify which are the measures taken for attracting investments and promoting export -
oriented industries? Could Mongolia list the relevant legislative acts and inform about the criteria for 
setting up activities in the free zones, and clarify whether foreign companies are eligible for setting 
up activities in these areas?  
Answer: The investment of foreign and domestic companies in the free zone of Mongo lia 
is regulated by the Law on Free Zones. Foreign investors are registered in accordance with 
the Law on State Registration of Legal Entities and the Law on Investment and are eligible  
to tax and non -tax incentives.  The Law on Free Zones and the Law on Co rporate Income 
Tax provide s tax breaks and exemptions . The Law on Free Zones provides for the 
allocation of land in free zones in two forms: project selection and auction. The selection 
of land use and possession projects and the organization of auctions a re conducted in 
accordance with government rules and regulations.  Incentives for the free zones apply 
equally to all foreign investors.  WT/TPR/M/406/Add.1  
 
- 54 - 
 
  3.2.5 Export finance, insurance, and guarantees  
Paragraph 3.71, Page 64  
"Mongolia is developing its export financing, insurance, and guarantees areas; see Section 
3.2.4 on its new and proposed initiatives. At present, Mongolia does not have any officially 
government -backed export finance, insurance, or guarantee products, but there are two 
areas in which such products are  planned."  
EU Question N°36  
Could Mongolia specify which are the two areas in which above -mentioned initiatives are planned? 
Could Mongolia also provide timeline for the introduction of the planned export finance, insurance, 
or guarantee products?  
Answer: The two areas are post -shipment financing and post -shipment guarantee.  
Answer: Mongolia has received credit from the International Development Association 
(IDA) to finance the implementation of an Export Development Project. The main 
objective of the project is to support Mongolian SMEs in the non -mining sectors to 
strengthen their export capabilities and expand their access to export markets. The 
project implementation has been transferred from MOF (Ministry of Finance) to MOFALI 
(Ministry of Food, Agriculture and Light Industry) st arting from September 2020. The 
development of the export financing products is implemented by the Mongolian National 
Reinsurance Joint Stock Company (Mongolian Re). Mongolian Reinsurance is currently 
working on the development of pre -shipment and post -shipment products. In 2021, 
Mongolian Reinsurance is working to develop a post -shipment product (producer credit 
insurance) and planning to introduce it to the Mongolian market.  
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
Paragraph 3.75, P age 64  
"As a result of the COVID -19 pandemic and the introduction of border restrictions, 
Mongolia issued a government resolution pursuant to the Law on Disaster Protection that 
puts in place measures to support the cashmere industry, reducing interest ra tes on new 
loans, providing special loans of up to MNT 300 billion for cashmere production with a 
one-year term and a 3% rate of interest, and advising the Development Bank of Mongolia 
to take measures to increase funding sources."  
EU Question N°37  
Could Mongolia specify the duration of the measures put in place to support the cashmere industry? 
Could Mongolia inform if any further support measured are envisaged?  
Answer: In February 2021, Mongolian new government has confirmed the socio -economic 
10 trilli on MNT package to strengthen national health and to recover the economy during 
and after Covid -19. The package includes a plan to support and protect its domestic 
agricultural production as main pillar of its economy. It is planned to create a budget (1) 
100 billion MNT to support agricultural cultivation process during spring,  (2) 200 billion 
MNT for cashmere preparation processes and  (3) 200 billion MNT for discounted credit for 
agricultural production and herders. The loan interest rate for agricultural cultivation 
process, cashmere preparation and herders has estimated to be 3 percent in a year. The 
loan for agricultural cultivation proc ess and  cashmere preparation is planned to continue 
for one -year period and the loan for herders for 3 -year period.  
3.3.2 Standards and other technical requirements  
Paragraph 3.80, Page 66  
"In accordance with its development strategy, Mongolia plans to further promote 
standardization, metrology, conformity assessment, and sampling control policies to 
ensure national, social, and economic security; increase exports; and support the 
development of national industries. The Sustainable Development Vision 203 0 has several 
goals for standards, in particular regarding the adoption of international standards in the 
animal health, fuel, and food sectors.82 For example, during the period 2016 -20, Mongolia 
planned to develop veterinary services in line with animal h ealth standards for the export 
of livestock and to strictly enforce standards for food products."  WT/TPR/M/406/Add.1  
 
- 55 - 
 
  EU Question N°38  
Could Mongolia specify the goals in the area of adopting international standards included in the 
Vision of Sustainable Development by 2030? H as Mongolia already taken any steps in this regard 
and what steps plans to take to achieve it?  
Answer: The long -term policy document "Vision -2050" has been approved by the Parliament of 
Mongolia in 2020. The document reflects same indicators of "SDG Mongolia 2030" and aims to 
implement international and regional standards and quality system in Mongolia.  
Paragraph 3.83, Page 66  
"The standards -making policy is also guided by Mongolian Agency for Standardization and 
Metrology's (MASM) bi -yearly Standardization Work Plans, which prioritize and focus the work of the 
standards agency. The two most recent Work Plans cover the periods 2018 -19 and 2020 -21. The 
most recent Plan focuses on the adoption of International Organization for Standardization (ISO), 
International Electrotechnical Commission (IEC), and other international standards. According to the 
authorit ies, one of the main objectives of the standardization policy is to increase the number of 
national standards that are aligned with international standards."  
EU Question N°39  
The TBT Agreement states that "Where technical regulations are required and rel evant international 
standards exist or their completion is imminent, Members shall use them, or the relevant parts of 
them, as a basis for their technical regulations…" – could Mongolia clarify if it adopts the relevant 
international standards or only use them partially, and where national standards are "aligned" with 
international standards, is the level of alignment 100%?  
Answer: The article 9.2 of the revised law on "Standardization, technical regulation and 
accreditation of conformity assessment " states that "The specifications and requirements 
of national standards shall use international and regional standards  if required and 
relevant international standards exist ." Therefore, t he statistics provided in the 
Secretariat report / Page 70 ，Table.3.21 / refers to  the percentage of MNS standards 
aligned with the relevant international standards such as ISO, IEC, EN and etc.  
Mongolia is currently implementing an animal identification and traceability system. This 
system should promote the deve lopment of meat exports. Two projects are making it 
possible to move forward on this site: the "Green Gold" project of the Swiss cooperation 
and the "Animal Identification and Registration System" project of the FAO, in which 
France is participating (via t he livestock institute, (IDELE ), whose participation in the 
phase of large -scale generalization is expected). The absence of an identification system 
would hamper the development of meat exports.  
EU Question N°40  
Could Mongolia confirm whether the compatibility between the two projects been ensured and has 
the financing of the operation of such a system been accounted for?  
Answer: A technical committee has been established at the Ministry of Food, Agriculture 
and Light Industry to coordinate these projects, and information is being exchanged at 
the committee's meetings. Currently, the AIRS system is tested only in 4 pilot soums, 
while the Animal Health Traceability System is used in veterinary organizations in all 
soums. Therefore, the systems are currently operating separately, and when the AIRS 
system was introduced nationwide, a technical solution was developed to connect the two 
systems. The Green Gold and Animal Health project will end in September this year, s o 
until then, some funding will be provided by the project, and the General Authority for 
Veterinary Services will be responsible for this function in the future.  
3.3.2.1 Framework  
Paragraph 3.84, Page 67  
"There were several developments in the standards framework during the review period. 
The main law on standards, technical regulations, accreditation, and conformity 
assessment was revised and replaced, a new list of products and services subject to 
mandat ory conformity assessment was issued along with the procedures for entering the 
market, and a new Law on Metrology was adopted (Table 3.20). Other developments WT/TPR/M/406/Add.1  
 
- 56 - 
 
  included the establishment of the National Accreditation Center and two  regional assay 
testing l aboratories in 2018. A new Order was put in place in 2016 for technical 
regulations that apply to imported alcoholic beverages."  
EU Question N°41  
Could Mongolia explain how a technical regulation that applies to imported alcoholic beverages 
complies with  Article 2.1 of the TBT Agreement: "Members shall ensure that in respect of technical 
regulations, products imported from the territory of any Member shall be accorded treatment no less 
favourable than that accorded to like products of national origin…"  
Answer: Indeed, the technical regulations are applicable to both imported and 
domestically produced beverages. The Ministry of Food Agriculture and Light Industry will 
revise the existing technical regulation on imported alcohol beverages in order to meet 
the WTO TBT Agreement principles. The draft regulation will be notified to WTO 
accordingly.  
Paragraph 3.87, Page 67  
"In December 2017, the Law on Standardization, Technical Regulation and Accreditation 
of Conformity Assessment (Law on Standardization) was adopted as the new main law on 
standardization, technical regulation, and conformity assessment; it entered into for ce on 
1 July 2018. It contains provisions on technical regulations, standards, conformity 
assessment, accreditation of conformity, violations, and government organization, 
control, and financing. According to the authorities, the main reasons for adopting the 
Law were to specify that standards were "voluntary", to regulate all types of conformity 
assessment activities, to improve product safety and quality in line with international 
practices, and to improve Mongolia's alignment with international standards  (e.g. ISO and 
IEC) to which it is a member. One of the most important changes in the Law is the 
establishment of a legal environment for an independent National Accreditation System. 
Since August 2020, the Mongolian National Accreditation System (MNAS) op erates as an 
independent body under the Deputy Prime Minister of Mongolia."  
EU Question N°42  
Regarding "independence", could Mongolia confirm that MNAS applies the international standards 
for accreditation and has a statute that guarantees its proper fun ctioning?  
Paragraph 3.88, Page 67  
"In 2016, an Order of the Minister of Industry was issued that approves and enforces technical 
regulations on imported alcoholic beverages. It requires traders that import alcoholic beverages to 
fully meet the specifications that include Mongolian technical  regulations for certain beverages, 
permissible levels of alcohol content, acidity/alkalinity measures, physiochemical characteristics, 
bacteriological indicators, alcohol safety levels of heavy metals, and packaging, transport, and 
labelling requirements.  According to the authorities, technical regulations are applicable to both 
imported and domestically produced beverages. This technical regulation has not been notified to 
the WTO."  
Answer: EU -funded Project on Support to the Modernization of Mongolian S tandardization 
System (SMMSS) was implemented at the MASM during the period 2014 -2017. The main 
outcome of the project was to support and improve legal environment of standards, 
technical regulations and conformity assessment procedures to be complied with  the WTO 
TBT Agreement and development of National Quality Program.  
 
As a result of successful implementation of the EU project on SMMSS, the revised "Law on 
standardization, technical regulation and accreditation of conformity assessment" was 
approved by the Parliament in 2017. In addition, as part of legal reforms, National 
Accreditation Authority has been functioning separately. In this regard, MASM's special 
thanks goes to the EU for its assistance by implementing the SMMSS project successfully 
in Mongo lia. 
 
In addition, MNAS meets the requirements of "ISO/IEC 17011:2017, Conformity 
assessment — Requirements for accreditation bodies accrediting conformity assessment 
bodies" and joined to IAF, ILAC and APACl.  WT/TPR/M/406/Add.1  
 
- 57 - 
 
  EU Question N°43  
Could Mongolia explain why these regulations have not been notified to the WTO to allow comments  
from members, in line with Article 2.9 of the TBT Agreement?  
Paragraph 3.89, Page 67  
"The List of Products and Services Subject to Mandatory Conformity Assessment was approved by 
a gov ernment resolution in 2018 in compliance with Clause 13.4 of the Law on Standardization (see 
para. 3.100 for product coverage). The same resolution also includes the Procedures to Supply Goods 
and Services with Conformity Attestation in the Domestic Market  and International Market. This 
resolution gives the responsibility for enforcement of the measures to the MASM, and to Mongolian 
Customs for imported products; they have the responsibility to allow the supply of products that 
meet the requirements and to not allow products to cross the border without a valid certificate of 
conformity. Special provisions apply to alcoholic beverages and tobacco products, in that they must 
have an approved conformity assessment before entering the country. In November 2019, Mongolia 
notified the TBT Committee of this draft Government Resolution."  
Answer: MASM is in charge of submitting TBT notification to WTO. Since the last TPR in 
2015, Mongolia has submitted 5 notifications to WTO. Some information available on 
website of MASM: https://estandard.gov.mn/regular .  
Please take a note that however, due to lack of capacity and english language barrier, 
some notifications were not submitted to the WTO accordingly. MASM is working t o 
improve the function of TBT National Enquiry point and train the officers in charge of TBT 
matters. MASM is seeking technical assistance and support for capacity building on the 
compliance with WTO TBT Agreement and its notification obligations.  
EU Quest ion N°44  
Could Mongolia specify whether the "special provisions" apply to domestic alcoholic beverages and 
tobacco products too?  
Answer: It is regulated by the Law on Combating Alcoholism and the Law on Tobacco 
Control.  
Paragraph 3.91, Page 68  
"The Law on Fortified Food, 2018, entered into force on 31 December 2019 and specifies 
that the MASM shall approve the national product standard for each type of fortified food. 
As at October 2020, two such fortified food standards  had been issued on wheat flour and 
food-grade iodized salt […]. Furthermore, the Law provides for state supports and 
incentives; however, according to the authorities, the State does not provide them to 
entrepreneurs ."  
Answer: In accordance with Article 2.1 of the TBT Agreement, the technical regulations 
on alcoholic beverages and tobacco products are applicable to both imported and 
domestically produced products.  
EU Question N°45  
Could Mongolia provide information on MASM's calendar for the approval of national product 
standards for the remaining types of fortified food? Could Mongolia also clarify what state support 
and incentives are provided according to the Law on Fortified Food and to whom?  
Paragraph 3.94, Page 69  
"The regulations on th e Rate Charge for Certification Services, the Procedure for Product and Service 
Certification according to the Scheme in Mongolia, the Code of Certification Board at MASM, and the 
Code of Certification Expert were revised and approved by Order No. 22, issu ed by the Deputy Prime 
Minister in 2019."  
Answer: Draft standards related to fortified food have not been submitted and included to 
the MASM work program for 2021 -2022.  WT/TPR/M/406/Add.1  
 
- 58 - 
 
  EU Question N°46  
Could Mongolia explain how this list was created. Is mandatory conf ormity assessment based on the 
level of risk of a product and if there are any other factors?  
Answer: The list has been created in compliance with the Article 13.2 of "Law on 
standardization, technical regulation and accreditation of conformity assessment"  which 
states that "Product which may cause the damage to human and animal health, 
environment, national security, and public interest shall be subjected to mandatory 
conformity assessment."  
Mongolia pursues the policy towards any technical barriers to trade to comply with the 
WTO ТВТ Agreement. For example, the revised "Law on standardization, technical 
regulation and accreditation of conformity assessment" facilitates the creation of 
volunta ry standards. Prior a revision of Standards law in 2017, all of national MNS 
standards were mandatory.  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.1 Policy  
Paragraphs 3.104 - 3.113, Page 71  
The report describes several projects aimed at improving the infrastructure for Sanitary 
and Phytosanitary measures.  
"Several programmes were adopted during the review period that seek to improve the 
health of humans, plants, or animals, often emanating from the Action Plan of the 
Government. They incl ude the Mongolian Export Program of 2018, the Healthy Food -
Healthy Mongolia Program of 2019, the National Animal Health Program of 2018, and the 
National Vegetable Program of 2017.103 The National Animal Health Program 2018 is 
particularly concerned with t he increase of highly contagious animal diseases, and aims 
to prevent and reduce the risks by implementing long -term mitigation strategies and 
improving compliance of the veterinary system with international standards.104 It had 
also planned to improve the  legal environment of the veterinary sector, which was 
achieved with the approval of the Law on Animal Health and the Law on Animal Genetic 
Resources in 2017. The MOFALI is the main administrative organization responsible for 
developing and implementing go vernment strategies and policies on SPS measures."  
EU Question N°47  
Could Mongolia explain what the specific achievements of the policy are in actual implementation 
regarding:  
a. the registration of food producing establishments;  
Answer: The Ministry of Food, Agriculture and Light Industry (MoFALI) currently has 
overall responsibility for food safety throughout the supply chain. General Agency for 
Specialized Inspection (GASI) is the Competent Authority for the registration and 
inspection of m ost establishments processing foods of animal origin, while sharing 
responsibilities with GAVS at slaughterhouses.  
b. The registration of livestock;  
Answer: Livestock registration is carried out within the framework of Article 5.1.1 of the 
Law on Livestock G enetic Resources. Livestock registration is carried out by a private 
livestock service unit.  
c. The monitoring and eradication of contagious and zoonotic diseases;  
Answer: An obligation for herders and veterinarians to report disease suspicion is 
established  under the new "Animal health" law and is set out in booklets maintained by 
each herder. Disease reports are generated monthly and transmitted in a timely manner 
through established communication channels. Improvements are needed to extend the 
App-based da ta collection to other aimags, strengthen data analysis for risk assessment, 
gather surveillance data from meat inspection into the animal health database, and ensure 
that the private veterinary units are economically sustainable.  WT/TPR/M/406/Add.1  
 
- 59 - 
 
  Active surveillance is a vailable for FMD, PPR, brucellosis and sheep and goat pox. Effective 
planning is in place at national and aimag levels with a calendar for all vaccination, 
surveillance, disinfection and parasite control activities available at aimag and soum 
levels. Field  veterinary staff have received training for regular surveillance and disease 
detection, thus increasing capacity for disease recognition. Guidelines and standard 
operating procedures (SOPs) on inspection tasks and responsibilities exist for priority 
anima l diseases.  
The consolidated laboratory network supports this surveillance system. Aimag 
laboratories have sufficient capacity to screen the surveillance samples and forward 
positive samples for confirmation to State Central Veterinary Laboratory (SCVL). Post 
outbreak surveillance was rapidly instituted after initial PPR and ASF outbreaks.  
A well -established emergency management system operates at national, aimag and soum 
levels as demonstrated during recent PPR and ASF outbreaks. Procedures, roles and 
responsibilities during an emergency are clearly set out in the new LAH. Financial support 
is available including compensation for animals destroyed by the state.  
d. Implementation and verification of HACCP based practices in food producing 
establishments;  
Answer: Within the implementation of the National Quality Program in 2016 -2020, the 
stakeholder's awareness on HACCP has increased even more so than prior  to the start of 
this program. Currently, 9 companies have received Hazard Analysis Critical Control P oint 
(HACCP) certification by Product and System Certification Department of MASM.  
Recent reports commissioned by FAO at the request of Mongolia call for revisions to make 
the laws governing food safety more risk -based and consistent with international 
standards. They include a call for creation of a new Mongolian Food Safety Authority. In 
April 2019 a FAO -WHO -Mongolia cooperation project was launched to develop efficient 
and effective food control management systems.  
There is a growing export -oriented mea t production system with slaughterhouses and 
meat processing establishments that apply HACPP principles and comply with 
international standards. Progress has been made in the development of a "gate to plate" 
traceability system, but data from post -mortem f indings are lost to the passive 
surveillance system. Most local abattoirs are reported to operate below capacity and are 
not fully covered by veterinary inspection. Much remains to be done to strengthen food 
safety systems for domestic markets and to train  veterinarians in food safety.  
e. The range of analyses of biological, chemical or environmental contaminants the 
National Reference Laboratory can conduct in various matrices, including honey, 
using validated methods.  
Answer: The National Reference Laborato ry conducts physiochemical, bacteriological 
tests at 800 indicators (calories, fats, carbohydrates etc) on food, household chemicals, 
and cosmetic products in conformity with national and international standards. The 
National Reference Laboratory conducts 14 inspections (diastasis number, moisture, 
sucrose ...) and monitors in accordance with high bee methodologies.  
The State Central Veterinary Laboratory (SCVL) is the National Reference Laboratory 
responsible for monitoring residues and environmental cont aminants in the food chain 
particularly, animal originated  raw materials and food products. A national residue testing 
programme includes all exported animal products such as honey and casings. The SCVL 
and the provincial laboratories are well equipped to carry out residue testing. However, 
this is not uniformly applied to animal products for domestic consumption and there is no 
or limited action on breaches of approved limits.  
EU Question N°48  
There are several technical regulations adopted since last TPR . Did Mongolia notify them to the WTO 
TBT Committee?  WT/TPR/M/406/Add.1  
 
- 60 - 
 
  Answer: Since the last TPR in 2015, Mongolia has submitted 5 notifications to WTO. Some 
information available on website of MASM: https://estandard.gov.mn/regular .  
EU Question N°49  
Does Mongolia export livestock products to other countries than China?  
Answer: Yes. We do export the livestock products to other countries. The share of 
Mongolia's total exports in 2019: China 98%, Grea t Britain 4.0, Germany 0.2%, Russia 
0.9%, Switzerland 1.0%.  
In 2016 -2019, frozen beef was exported to China, North Korea, Vietnam, Kazakhstan, 
Russia, mutton and goat meat to the United Arab Emirates, China, Iran, Kazakhstan, 
Qatar, Kyrgyzstan, Malaysia, a nd horse meat to China, Kazakhstan and Russia.  
In 2019, 280 tons of horse meet exported to the Russian Federation, and 203.5 tons 
exported to Kazakhstan. In 2019, 5.5 thou ton of lamb exported to Iran and 934 ton to 
North Korea. In 2019, 419.5 ton of lives tock intestine exported to Germany, Italy, 
Switzerland and Japan. In 2019, 556.9 thou metric cube of horse and cow hide exported 
to China, 53.4 thou metric cube hide to Thailand and 36.7 thou metric cube hide to India.  
3.3.3.2 Framework  
Table 3.22, Page 7 3  
EU Question N°50  
Could Mongolia provide the complete list of laws or resolutions on SPS measures? Could Mongolia 
specify whether SPS related laws and resolutions are made publically available and if translated into 
English or other languages?  
Answer:  
1. Regulation for supply to the Mongolian market and crossing the state boarder of 
products and services with certificate of conformity  
https://www.legalinfo.mn/law/details/16037?lawid=16037  
2. Law on stand ardization, technical regulation and accreditation of conformity 
assessment  https://www.legalinfo.mn/law/details/15929?lawid=15929   
3. Law of Food - http://extwprlegs1.fao.org/docs/pdf/mon42182.pdf  
4. For the reference of the EU delegation Law of Mongolia on border quarantine 
control for entrance of animal, plant or their raw materials and products is 
attached.  
 
THE QUARANTINE 
LAW OF  MONGOLIA.pdf
 
Paragraph 3.113, Page 74  
"The National Reference Laboratory for Food Safety was established in 2013, and achieved 
international accreditation pursuant to ISO standard 17025:2007; it has specialized 
reference expertise to as sess biological risks, toxic chemicals, products derived from 
GMOs, food additives, veterinary drugs, and pesticide residues.111 Its responsibilities 
include assessing risks related to food safety, coordinating with relevant national and 
regional bodies, p roviding support for the accreditation of food laboratories, and providing 
a final validation of results of other accredited laboratories. The Central State Veterinary 
and Sanitary Laboratory was established for animal health; it is responsible for detecti ng, 
diagnosing, and confirming highly contagious, infectious, parasitic, non -infectious, and 
toxic animal diseases in the territory of Mongolia. By 2020, 66 laboratories were 
accredited for food testing."  
 
 
 WT/TPR/M/406/Add.1  
 
- 61 - 
 
  EU Question N°52  
Could Mongolia specify the range of analyses of biological, chemical or environmental contaminants 
that the National Reference Laboratory can conduct in various matrices using validated methods? 
More specifically, could Mongolia explain how the National Re ference Laboratory will manage the 
national residue monitoring programmes that are necessary for honey and casings intended for 
export to the EU?  
Answer: The National Reference Laboratory conducts physiochemical, bacteriological 
tests at 800 indicators (c alories, fats, carbohydrates etc) on food, household chemicals, 
and cosmetic products in conformity with national and international standards. The 
National Reference Laboratory conducts 14 inspections (diastasis number, moisture, 
sucrose ...) and monitors in accordance with high bee methodologies.  
 
The State Central Veterinary Laboratory (SCVL) is the National Reference Laboratory 
responsible for monitoring residues and environmental contaminants in the food chain 
particularly, animal originated  raw materia ls and food products. A national residue testing 
programme includes all exported animal products such as honey and casings. The SCVL 
and the provincial laboratories are well equipped to carry out residue testing. However, 
this is not uniformly applied to a nimal products for domestic consumption and there is no 
or limited action on breaches of approved limits.  
3.3.4 Competition policy and price controls  
Paragraph 3.120, Page 76  
"The AFCCP has a strategic plan for 2018 -20 that guides its work, and it has developed a 
national programme on promoting and maintaining market competition."  
EU Question N°53  
Could Mongolia confirm whether the AFCCP has a strategic plan for beyond 2020, and if so, could 
Mongolia provide more details?  
Answer: According to The Competition Law of Mongolia, a draft Strategic plan for the years 
2020 -2024 has been developed by the AFCCP.  
3.3.5 State trading, state -owned enterprises (SOEs), and privatizat ion  
Paragraph 3.122, Page 76  
"According to the report, in 2018, the Mongolian Parliament was set to consider the Draft 
Guidelines for Privatization and Reorganization of State Property in 2018 -20, which 
specified the privatisation or reorganisation of 27 SOEs; however, it was not approved."  
EU Question N°54  
Could Mongolia provide more information on whether it intends to put forward new Draft Guidelines 
for Privatisation and Reorganisation of State Property for the consideration of the Parliament, and if 
so, what is the timeline for its release and Parliament  approval?  
Answer: The Draft Guidelines for Privatization and Reorganization of State Property in 
2018 -2020 was not approved by the Parliament. However, the revision of the State and 
Local Property law is proposed and expected to be submitted to the Parli ament. Pursuant 
to the proposed draft law, the privatization or reorganization which previously required 
ahead planning and approvals now will be discussed and approved at the Parliament on 
"case by case" basis.  
3.3.6 Government procurement  
Paragraph 3.1 28, Page 79  
"Mongolia is not a signatory to the WTO plurilateral Agreement on Government 
Procurement (GPA). It has been an observer to the Committee on Government 
Procurement since 1999, and plans to conduct an internal survey regarding whether to 
join th e GPA."  
EU Question N°55 (see also EU Question N°6)  
Could Mongolia confirm that it intends to join the GPA and provide the envisaged timeline for it?  WT/TPR/M/406/Add.1  
 
- 62 - 
 
  Answer: The subject matter is in the early stage of internal discussion of the cabinet.  
Paragraph 3.132 , Page 80  
"No data are available regarding foreign suppliers' participation in the public procurement 
market. The 2019 amendment of the PPLM introduced additional preferences for domestic 
manufacturers. A list of goods to be supplied only by domestic manufacturers, as proposed 
by the relevant ministry, was issued in the Government Decree No. 336, 2015. 
Furthermore, the PPLM provides for value thresholds for participation of foreign suppliers 
in public procurement. In 2019, 27 foreign suppliers participated in 67 bidd ing processes, 
and in 2020, 42 foreign suppliers participated in 169 bidding processes. According to the 
PPLM, a foreign entity is allowed to submit a tender in bidding processes for works with 
cost estimates of above MNT 10,000,000,001, and for goods and services with cost 
estimates of above MNT 100,000,001."  
EU Question N°56  
According to the 2019 amendment of the PPLM, discrimination against foreign entities seems to take 
place. How does the Mongolian government plan to improve the conditions for foreign  entities 
bidding for public procurement?  
Answer: The threshold stated in the PPLM for the participation of foreign entities in 
national bidding processes hasn't been changed since 2007. The issue is not about the 
discrimination but the willingness of for eign entities to participate in biddings. On 
contrary, we believe that foreign entities are still strongly dominant in securing contracts 
associated with the mega projects implemented by the government.  
3.3.7 Intellectual property rights  
3.3.7.1 Overview  
Paragraph 3.134, Page 80  
"Parliament adopted the Law on Intellectual Property on 23 January 2020, and it will 
enter into force on 1 December 2020. According to the authorities, the Law aims to 
address overlaps, conflicts, and other issues within existing IP laws."  
EU Question N°57  
Could Mongolia clarify what IP rights are covered under the Law on Intellectual Property Rights? 
Does it mean that all revised IP laws (copyright, trademarks, patents and geographical indications) 
have been impacted by the revision and all modifications of the mentioned IP laws (i.e Law on Trade 
Marks and Geographical Indications) entered into force on 1 December 2020? Could Mongolia 
indicate when the consolidated text of these IP laws will be available?  
Answer: The Law on Intellectual Property was approved by the Parliament on 23 Jan uary 
2020 and entered into force as of 1 Dec ember  2020. Newly adopted IP law is also so -
called as an umbrella law. This Law regulates works to be protected by intellectual 
property rights, syste m and functions of intellectual property institutions, and issues 
related to encouraging commercialization of intellectual property.  
 
However, Trademark and GI law, Patent law and Copyright and Related rights law of which 
we called IP package law are expec ted to be discussed during spring session of the 
Parliament in 2021.  
 
Texts of the draft laws are available at the website of the Parliament and once it is 
approved, it will be placed at the www.legalinfo.mn . 
EU Que stion N°58  
Does Mongolia benefit from specific technical assistance with regard to IPR enforcement for customs 
officers, police officials , prosecutors or judges in order to improve the fight against counterfeiting 
and piracy?  
Answer: We organize trainings and meetings with officials involved in this activity using both our 
internal resource and support from foreign country. For instance, officials from IPOM, General Police 
Authority and Customs Office attend abroad trainings or ganized by USPTO and US Department of WT/TPR/M/406/Add.1  
 
- 63 - 
 
  Justice and annual roundtable meeting in Ulaanbaatar with a support of US Embassy in Mongolia. 
Other than that, there is no specific technical assistance from other parties.  
Paragraph 3.139, Page 81  
The RTA between J apan and Mongolia entered into force on 7 June 2016. It contains a chapter with 
detailed provisions on IP protection and enforcement.130 For example, Article 12.7 of the RTA 
requires, inter alia , parties to ensure that patent applications are not rejected solely on the grounds 
that the subject matter is related to a computer programme.  
EU Question N°59  
Could Mongolia indicate whether any other international agreements/trade agreements have been 
concluded or entered into force, which contain an IP chapter?   
Answer: There are no other international agreements/trade agreements that contain an 
IP chapter besides EPA between Japan and Mongolia. EPA between Japan and Mongolia 
entered into force on 7 June 2016.  
Table 3.27 (Membership in WIPO -administered treaties), Page 81  
EU Question N°60  
Does Mongolia intend to access to other WIPO treaties, such as the Geneva Act of the Lisbon 
Agreement on Appellations of Origin and Geographical Indications?  
Answer: It is st ill at discussion level and nothing has been decided yet. The IPOM will 
conduct necessary study on this matter.  
Table 3.28 (Payable fees), Page 81  
EU Question N°61  
Could Mongolia indicate the fees related to geographical indications?  
Answer: An applicant shall pay MNT20,000 (approximately USD7) for GI application.  
3.3.7.2 Copyright and related rights  
Paragraph 3.141, Page 82  
"The Law on Copyright and Related Rights, revised in 2006, regulates matters related to 
the protection of copyright and issues arising in connection with the use of works that are 
subject to copyright. Under the Law on Copyright and Related Rights and the Law on 
Infringement, pirat ed websites will be taken down by the Communications Regulatory 
Commission of Mongolia at the request of the IPOM."  
EU Question N°62  
What kind of amendments were made and in which domains affecting copyright?  
Answer: Article 25 of the Copyright and Related Rights Law specifies about Protection of 
copyright in the Internet. In accordance with this provision, an internet service provider 
shall be obligated to prevent any copyright violation in websites hosted on its own server 
and provide authors and right holders with the possibility to enforce their rights. An 
internet service provider shall be obligated to close the website in question as soon as 
such violation is reported. A judge or a state inspector shall im pose liabilities specified in 
the legislation on an internet service provider, which failed to perform its duties. The court 
shall resolve disputes related to closing down of websites.  
3.3.7.3.2 Trademarks and geographical indications  
"As at 11 August 201 6, the WIPO Global Brand Database of trademarks included 
Mongolian trademarks. Mongolia's methods of protecting trademark and geographical 
indications, including the examination process, maintenance, and term of protection, 
remained largely unchanged since  the previous Review."  
 
 WT/TPR/M/406/Add.1  
 
- 64 - 
 
  EU Question N°63  
Could the Government of Mongolia please provide data and explanations on new provisions related 
to the protection of well -known marks in the 2010 amendments to "The Law on Trademarks and 
Geographical Indications"?   
Answer: As indicated in Article 5.5 of the Trademark and GI law, government agency in 
charge for intellectual property shall approve the list of well -known marks. In this regard, 
Regulation on Registering Well -known Marks was approved by the Director Gen eral of the 
IPOM in April 2014. At present, there is no registered well -known marks in Mongolia.  
EU Question N°64  
Could the Government of Mongolia please indicate whether the law provides a procedure of invalidity 
of trademark registration where the application for registration of the trademark was made in bad 
faith by the applicant?  
Answer: Chapter 7 of the Trademar k and GI law (2010) regulates procedures related to 
the complaints and requests by right holder, applicant and third party. Moreover, Article 
25 of the Law on Intellectual Property again elaborated activities related to the dispute 
resolution for Industria l Property. Article 5.2.11 of the draft Trademark and GI law states 
that the trademark shall not be registered if the application was submitted in bad faith.  
3.3.7.3.2 Trademarks and geographical indications  
Paragraph 3.147, Page 83  
"The EU -Mongolia Partnership and Cooperation Agreement entered into force on 1 
November 2017, and it states, inter alia , that the parties will conclude an agreement on 
geographical indications. According to a roadmap published by the European Commission, 
the Agreement would cover EU products in Mongolia and Mongolian products 
commercialized in the European Union that bear geographical indications. As at June 
2019, 20 geographical indications were registered. Regarding the protection of goods with 
a specific  geographical origin, Mongolia, as the world's second largest cashmere producer 
and accounting for approximately 25% of global production, protects its cashmere's 
reputation through two certification marks of the Mongolian Fiber Mark Society: Pure 
Mongolia n Cashmere and Made With Mongolian Cashmere."  
EU Question N°65  
Could Mongolia confirm that cashmere is also protected as a geographical indication in Mongolia?  
Answer: Yes. Presently, there are 5 registered GIs on different types of cashmere. Scales 
of cashmere fibre is different to region by region mainly due to its climate and 
geographical characteristics.  
Mongolia has shown great interest in geographical indications (GIs) as a tool to support 
export development. The country is expected to enter into a mutual recognition 
agreement for GIs with the European Union.  
Several other initiatives and reflections are underway:  
-The Mongolian Intellectual Property Institute (IPOM) is studying the advisability of 
joining the Geneva Act of the Lisbon Agreement on Appellations of Origin and 
Geographical Indications.  
-A new law on GIs (Law of Mongolia on trade marks  and geographical indications) was 
due to be adopted in February 2021. Changes in the health (local contamination) and 
political context (resignation of the government in mid -January) could delay its adoption.  
-A procedure for the recognition of a first Mo ngolian GI by the European Union, Uvs sea 
buckthorn, is underway. In 2017, the EU made a comment (very reserved, given the work 
that remained to be done) on a first set of specifications. There have been no sequels so 
far on this GI.  
EU Question N°66  
Have the Mongolian authorities planned to take additional steps on this matter?  
Answer: The IPOM received finalised application documents from the Mongolian National 
Chamber of Commerce and Industry, IP agent of an applicant, at the end of Jan 2021. WT/TPR/M/406/Add.1  
 
- 65 - 
 
  Document s sent to Directorate of Agriculture and Regional Development of the EU for 
review. We will have an online meeting to discuss the application in mid -Feb.  
4.2 Mining and Energy  
4.2.1 Mining  
Paragraph 4.54, Page 102  
"The Law stipulates that the level of state ownership may vary, depending on the 
financing of the exploration, its nature, and whether the mineral deposit qualifies as a 
"strategically important mineral deposit". Article 4.1.12 of the Mineral Law states th at a 
"strategically important mineral deposit" means a deposit that affects national security, 
or national economic and social development, or produces or can produce more than 5% 
of annual GDP. Compulsory state ownership clauses can be replaced by additio nal 
royalties. The Law also stipulates that…"  
EU Question N°67  
Article 6.2 of Mongolia's Constitution (amended 2019) requires the state to take a majority share of 
the benefits of strategic mining projects. Could Mongolia define the meaning of "benefits" derived 
from mining activities?  
Answer: In connection with the amendments made to the Constitution of Mongolia in 
2019, the Minerals Law and other relevant laws have not been amended yet on the 
benefits of strategically important deposit projects.  
Paragraph 4.55, Page 103  
"Procedures a pplied for the granting of mining exploitation licences differ regarding land 
rights, depending on the degree of foreign ownership of the applying entity. For an entity 
whose capital comprises between 25% and 100% foreign investment, the licence holder 
can obtain only a land -use right. Entities with less than 25% foreign investment are 
considered domestic entities, and are eligible to obtain a land possession right. Another 
difference in treatment between domestic and foreign entities is the requirement tha t 
foreign SOEs investing in an entity operating in the mining sector need prior approval 
from the authorities if they acquire 33% or more of the shares. This requirement stems 
from the generic investment law applicable to all economic sectors."  
EU Questio n N°68  
Could Mongolia clarify the requirement of USD 100 000 from foreign investors?  
Answer: Article 3.1.5 of the Investment Law states that "a business entity with foreign 
investment must be established in accordance with the laws of Mongolia; a foreign  
investor should own 25 percent or more of the total shares issued by the legal entity and 
the amount of each foreign investor's investment should be more than USD 100,000 or 
equivalent."  
EU Question N°69 (See also Paragraphs 4.52 and 4.55)  
Could Mongolia confirm if the Minerals Law complies with the national treatment principle?  
Answer: There is no discrimination between foreign and domestic investors in the 
Minerals law, and their activ ities are regulated on an equal basis.  
EU Question N°70  
What measures do the authorities plan to implement to improve the business climate, including 
respect for contract law, in order to facilitate investments (especially outside the mining sector), 
including foreign investments?  
Answer: Relevant laws will be developed or revised in order to improve the business 
environment and protect the interests of foreign investors following the Guidelines for 
improving the legislations of Mongolia until 2024 which w as approved by the Parliament.  
 
 
 WT/TPR/M/406/Add.1  
 
- 66 - 
 
  4.3 Manufacturing  
Paragraph 4.110, Page 116  
"In 2015, Mongolia passed a law on Production Support that is aimed at supporting 
export -oriented and import -substituting industries, which establishes an Industrial 
Development Fund for the purpose of financing the various measures. According to the 
repor t, no support has been provided by the Fund to date."  
EU Question N°71  
Could Mongolia explain the criteria that producers need to fulfil in order to benefit from support 
offered by the Fund? Could Mongolia clarify whether foreign investors can also apply for such 
support? Could Mongolia also confirm that the Fund has not provided any support until now and 
explain the reasons for this?  
Answer: The Production Support Law is annulled as of January 1, 2020. Under this law no 
producers benefitted from the Indus trial Development Fund. The main reason was that 
project requests did not meet the requirements of the Fund. Moreover, it was established 
by the law that the required fund would only be allocated from the budget if there is a 
project that meets the require ments. The Ministry of Food. Agriculture and Light Industry 
is drafting a Law on Light Industry which is expected to be submitted to the Parliament 
in 2021.  
4.4.1.2 Banking services  
Paragraph 4.121, Page 118  
"During the review period, Mongolia adopted or amended numerous technical regulations 
regarding banking services, the most prominent of which in terms of market access being 
a new regulation on licensing (Decree No. A -82 of the Governor of the Bank of Mong olia, 
adopted on 22 March 2019). Further regulations are being drafted, notably on asset 
classification and provisioning, loan origination, approval and monitoring, collateral 
valuation, the stabilization fund62, and the appointment of independent members to the 
Board of Banks."  
EU Question N°72  
Could Mongolia explain how the new banking law will impact foreign investors?  
Answer: On January 28, 2021, The Parliament of Mongolia, approved amendments to the 
Banking Law of Mongolia. Effective implementation o f the latest amendments to the 
Banking Law will result in reduction in bank ownership concentration and ensure balance 
between ownership -management -control across bank structure.  The amendments are 
expected to reduce risks associated with concentration on shareholders and executive 
management, enhance additional control by the public and independence of banking 
supervision, and bring more transparency and accountability with the help of public 
ownership in the banks.  Amendments to the Banking Law did not ch ange the regulations 
related to foreign investment. Foreign persons may and expected to participate in the 
shareholding in a bank, current shareholders with excess holdings above the maximum 
cap are expected to divest or sell them off and as banks are obli ged to go public within 
the set deadline.  
Paragraph 4.123, Page 119  
"The new licensing regulation sets additional criteria for foreign established banks"  
EU Question N°73  
The EU notes Mongolia's openness in the area of  financial services through its GATS commitments, 
as reflected in paragraph 4.125. According to paragraph 4.123, the new licensing regulation sets 
additional criteria for foreign established banks, such as having been listed in the top 100 places of 
the Ba nkers' Almanac, in terms of total assets during the last three years, and having been rated no 
lower than A per S&P or Fitch, or 2 per Moody's. How does the Government of Mongolia tally these 
additional requirements for foreign established banks with its G ATS commitments?  
Answer: The above requirements delineated in the new licensing regulation were aimed 
at fulfilling one of the mandates of the Bank of Mongolia (Central bank) i.e., to ensure the 
financial stability and guard against the undue risks that w ould have an adverse impact WT/TPR/M/406/Add.1  
 
- 67 - 
 
  on the country's economic security,  the well -functioning of financial system and its 
participants. In line with the Banking law (Article 23.1) the Bank of Mongolia may refuse 
to grant permission to establish a bank on the ground s that doing so would give rise to 
these risks.  
Deciding whether the banking license need to be granted to a foreign entity requires the 
considerable scope of work and due diligence by the supervisory authority, a current 
resources and capacity of which a re relatively limited. Thus, the Bank of Mongolia 
envisages that these difficulties currently encountered in licensing foreign banks would 
be facilitated by applying the eligibility criteria that are already tried and tested 
internationally such as Investm ent grade ratings and international prestige ranking. Once 
the BOM is equipped with better resources and expertise, we plan to ease these 
requirements gradually.  
Paragraph 4.132, Page 120  
"To tackle these challenges, the Bank of Mongolia submitted a draf t Banking Sector 
Reform Program, 2020 -23, for parliamentary discussion.66 This medium -term 
programme includes 5 core objectives and 49 reform actions, including recapitalization. 
The draft programme will address: (i) bank ownership concentration and govern ance; (ii) 
modernization of bank supervision; (iii) the IMF recommendations (iv) improvement of 
the AML -CTF system; and (v) modern banking operations and FinTech."  
EU Question N°74  
Could Mongolia explain the changes introduced to improve the AML/CFT syste m? 
Answer: In response to the Financial Action Task Force (FATF) identifying Mongolia as a 
jurisdiction having strategic anti -money laundering  and combating financing of terrorism 
(AML/CFT) deficiencies in October 2019, Mongolia has made a high-level political 
commitment to work with the FATF to strengthen its AML/CFT framework. In this regard, 
Mongolian government authorities together with private sector institutions and 
professional associations have worked hard to accomplish the targets s et in the action 
plan developed with the FATF in the shortest possible time despite the COVID -19 global 
pandemic. As a result, FATF has decided to remove Mongolia from its list of jurisdictions 
with strategic AML/CFT deficiencies during its Plenary meeting  held on October 23, 2020. 
Based on the Mongolia's removal from the FATF's increased monitoring in only 1 -year 
period and significant progress in improving its AML/CFT regime, European Commission 
has excluded Mongolia from its list of high -risk third juris dictions with strategic AML/CFT 
deficiencies on January 18, 2021.  
Effective coordination and collaboration of responsible authorities were crucial to 
demonstrate this significant progress in recent years. In this regard, Mongolia has 
established National C ommittee for making AML/CFT policy decisions, and Cooperation 
Council for implementing AML/CFT laws and regulations. With its increased workforce and 
resources, Financial Information Unit (FIU) of Mongolia has been the key focal point of 
over 15 members or ganizations of the National Committee and Cooperation Council and 
working towards strengthening the public -public as well as public -private partnerships.  
Based on our successful partnerships through the FIU -Mongolia, we have improved our 
AML/CFT system by implementing the FATF's 40 Recommendations. Currently, 37 out of 
40 Recommendations have been rated as Largely Complaint or Compliant. In this regard, 
Mongolia has amended its legal and regulatory framework. For instance, the law on 
countering the proliferation of weapons of mass destruction and terrorism was revised in 
October 2019. AML/CFT law and other relevant laws such as Legal status of Financial 
Regu latory Commission, Infringement law and Criminal code were amended on 17 
January 2020. In order to promote the implementation of the legal amendments, Mongolia 
has made substantial progress in improving the understanding of ML/TF/PF risks at the 
institutio nal and sectoral level. Also, all Designated Non -Financial Business and 
Professions (DNFBPs) have become subject to full AML/CFT obligations and we have 
established AML/CFT supervisory framework for DNFBPs in addition to financial 
institutions.  WT/TPR/M/406/Add.1  
 
- 68 - 
 
  To further  strengthen the AML/CFT system, FIU -Mongolia has started conducting National 
Risk Assessment of Money Laundering and Terrorism Financing in accordance with the 
World Bank guidance throughout 2020. The National Risk Assessment has covered ML/TF 
threat and v ulnerability at national level as well as risk assessments of financial and 
DNFBP sectors. In accordance with the AML/CFT Law, Mongolia will develop and 
implement the Medium -term AML/CFT National Strategy based on the results  of the 
National Risk Assessmen t. The FATF will conduct its 5th year follow -up assessment in 
2023 in Mongolia to evaluate the implementation of FATF's 40 Recommendations and 11 
Immediate Outcomes. To better prepare for this assessment, FIU -Mongolia will lead the 
implementation of the Na tional Strategy and its detailed action plan by sustaining 
effective collaboration and cooperation of responsible authorities. Thus, Mongolia will 
continue its commitment and dedication in strengthening effectiveness of its AML/CFT 
regime and sustaining it s institutional capacity to maintain the progress in the long run.  
Investment funds, investment management companies and licensed securities market 
entities are all regarded as reporting entities under Article 4.1 of the Law on Combating 
Money Laundering and Terrorism Financing. Reporting entities are subject to various 
requirements of the law; such as: assessing their own ML/TF risks, establishing internal 
control programs, identifying beneficial ownerships, reporting and monitoring of 
suspicious transact ions, implementation of sanctions issued by the UNSCR (and other 
relevant authorities), record keeping, etc. In addition to the law, reporting entities are 
also obliged to comply with Preventive measures regulation on anti -money laundering 
and combating the financing of terrorism .  
Regulation on fitness and propriety for non -bank financial institutions and non -financial 
businesses and professions was adopted by the FRC in April 2020, to reduce the risk that 
responsible persons of the regulated institutions were unfit and/or unsuitable for their 
roles. The fit and proper tests are implemented in all FRC -regulated sectors, prior to 
granting market entry, and the fit and proper test reflect FATF standards.  
The FRC puts great importance on the risk -based approach for supervision within its six 
regulated sectors. Supervision is conducted in accordance with Regulation on off -site and 
on-site supervision of the non -bank financial reporting entit y on anti -money laundering 
and combating financing of terrorism and proliferation. FRC has ensured sufficient 
resources, and expertise, for conducting both on -site and off -site risk -based supervision; 
including the use of proportionate and dissuasive sanct ions for AML/CFT breaches.  
The supervision framework was updated by the FRC, to define fundamental supervision 
principles and strategies that the FRC will implement. The supervision framework reflects 
the effective implementation of the risk -based approach  within the sectors regulated by 
the FRC. Measures to assess individual risk levels of the reporting entities are conducted 
bi-annually, through questionnaires. The FRC updated risk assessment questionnaires in 
2021, to provide for continuous improvement i n the quality of risk assessments in 
accordance with the FATF standards (AML/CFT laws, and regulations). Risk profiles of 
regulated reporting entities are updated accordingly by supervisors.  
Sectoral risk assessment has been conducted twice within the span  of two years. In 2019, 
the FRC conducted a sectoral risk assessment in all regulated sectors, and shared the 
findings with industry associations and participants. In 2020, a working group was 
established - by the Minister of Finance's decree number 90 - to conduct the National Risk 
Assessment (NRA). Under the World Bank's guidance, the NRA was conducted in 
Mongolia; where the FRC took charge in assessing its own six regulated sectors. As a 
result of the NRA, an action plan was devised for each sector (incl uding securities) to 
further strengthen the AML/CFT system.  
A revised version of the Law on Securities Market is currently being drafted; with research 
being conducted by the FRC, on whether additional requirements (related to AML/CFT) 
can be included wit hin the sectoral legal framework.  WT/TPR/M/406/Add.1  
 
- 69 - 
 
  4.4.1.4 Securities and stock market services  
"The report states that the FRC developed a list of amendments to current laws and new 
draft laws called the Main Direction of Improvement in Legislation of Mongolia by 2020, 
and sent it to the Government and Parliament, which includes the Law on Investment."  
EU Question N°75  
Could Mongolia explain the changes that the amendments to the Law on Investment foresee? Could 
Mongolia also inform about the timeline for adoption of these amendments?  
Answer: Based on the assessment of the implementation of the Investment Law of 
Mongoli a and the research on international investment policy and legal acts, National 
Development Agency is working to create a more favo urable legal environment for 
investors by amending the existing investment law. The Government of Mongolia has also 
announced to implement a comprehensive Investment Climate Reform and establish a 
Foreign Investment Promotion Council under the Prime Minister of Mongolia.  
4.4.2 Legal services  
Paragraph 4.146, Page 123  
"The market access regime of legal services differs for domes tic and foreign providers. 
Under the Law on the Legal Status of Lawyers, implemented in 2013, one must form a 
limited liability partnership and be a member of the Bar Association, which requires 
passing the bar exam, to obtain the title of lawyer and provi de legal advice. To represent 
clients in court, a lawyer must also register with the Supreme Court."  
EU Question N°76  
May foreign lawyers, who are registered in Mongolia, practice (apart from the law of foreign 
countries) also public international law?  
Answer: Yes, foreign lawyers, who are registered in Mongolia, can practice pubic 
international law.  
WT/TPR/G/406 – Report by  Mongolia  
2 MAJOR DEVELOPMENTS IN MONGOLIA'S TRADE AND ECONOMIC SECTORS (2014 -2020)  
2.4 World Trade Organization  
Paragraph 2.32, Page 8  
"The National Committee, established by the Government Resolution #137 of 10 May 2017 
in charge of overseeing and intersectoral coordination for the implementation of the 
Agreement on Trade Facilitation , developed policy documents such as its Strategic Plan 
for 2018 -2022 and National Road Map on Trade Facilitation for 2018 -2022."  
EU Question N°77  
Could Mongolia provide more details on the contents of the Strategic Plan for 2018 -2022 and the 
National Road Map on Trade Facilitation for 2018 -2022, together with the hyperlinks where they can 
be found online?  
Answer: Тhe Strategic Plan for 2018 -2022 an d the National Road Map on Trade Facilitation 
for 2018 -2022 of National Trade Facilitation Committee of Mongolia are designed to 
support the implementation of the relevant provisions of the WTO's Trade Facilitation 
Agreement.  
The National Trade Facilitati on Committee chaired by the Minister for Foreign Affairs, was 
established on May 10, 2017. It is a practice in many other countries that the first step of 
action for the National Committee is to create a country specific National Trade Facilitation 
Roadmap  and use it as a guide for further actions. The roadmap is developed in order to 
monitor just -in-time implementation of provisions of the WTO TFA falling under categories 
B and C and harmonize all related projects and programs and is regarded as a basic po licy 
document of the National Committee.  
The National Trade Facilitation Committee developed a Strategic Action Plan 2018 -2022, 
in order to lay out strategic goals, objectives to implement Trade Facilitation Agreement WT/TPR/M/406/Add.1  
 
- 70 - 
 
  with specific timelines, expected outc omes and responsible agencies. The strategic goals 
sat in the plan are:  
1. Strategic goal 1 – In harmony with the WTO Trade facilitation agreement and other 
related international conventions on trade facilitation, to appropriate legal 
provisions in the nation al legislation;  
2. Strategic goal 2 – Promoting and strengthening cooperation between the both 
domestic and foreign (international) trade stakeholders;  
3. Strategic goal 3 – To enhance capacity building development both public and 
private sector stakeholders of the international supply chain;  
4. Strategic goal 4 – To develop infrastructure of the information technology and to 
expand non -intrusive equipment and  simplify trade facilitation measures.  
Both the National Roadmap and the Strategic Action Plan guide and measure the works of 
the National Committee and all other stakeholders who engage in the trade facilitation 
efforts. The introduction and summaries of  the two documents published in the website 
of Mongolian Customs and the Trade Information Portal. For the reference of the EU 
delegation the National Trade Facilitation Roadmap and the Strategic Action Plan 2018 -
2022 are attached hereby.  
2 attachments  
Rmap English   208 
11 28-converted.pdf
Strategic Plan eng 
2018 11 28-converted (2).pdf
 
2.5 Changes in Legislation  
Paragraph 2.33, Page 8  
"The most significant development in the legal environment of Mongolia was the 
amendments and revisions made in the Constitution of Mongolia in 2019. The amended 
and revised Constitution has entered into force as of 25 May 2020. The main thrust of the 
amen dments and revisions was to solidify the parliamentary democracy, ensure the 
stability and accountability of the executive power, improve the responsibility and 
independence of the judiciary and strengthen the local governance."  
EU Question N°78  
What is Mongolia doing to ensure the independence of the judiciary, in particular, the fight against 
corruption, and what is the present situation after the changes in legislation in 2019?  
Answer: According to the revised Law on Courts, if any decisions or actions  by the 
President, the Parliament, and the Government is found to threaten the independence of 
the judiciary, the Judicial General Council will convene immediately to forward, through 
the Supreme Court, its proposal to the Constitutional Court. Moreover, t he law lists more 
than 40 types of prohibition which apply to judges in the exercise of their functions, 
disciplinary measures and statute of limitations for the proceedings.   
 
Paragraph 2.35, Page 8  
"Over 40 statute laws shall be revised to meet the language of provisions of the 2019 
amendments and revisions of the Constitution which will be carried out in 2020 -2021."  
EU Question N°79  
Could Mongolia specify whether any statute laws touching upon tra de and investment aspect will be 
revised?  
Answer: The Government has revised Law on the Information Transparency and Right to 
Information under the new title of Public Information Law. The draft law is currently open 
for public comments. The revised law affirms the citizens ' constitutional right to 
information and stipulates the principles of accessibility and transparency of public 
services. The law will enable citizens and legal entities to access the required information WT/TPR/M/406/Add.1  
 
- 71 - 
 
  in paper or digital  forms and it also establishes the principles of sharing information  
available with exception of those which are classified.  
 
The revision of Law on state -owned and local state -owned enterprises has been initiated 
by the Government of Mongolia in order to modernize governance of these enterprises 
and to promote transparent and responsible business conducts. By the revised law the 
Government attempts to promote fair competition and equal opportunities for both state -
owned and private enterprises with reduced  state interference in this context.  
 
The Government is also revising Company Law to establish differentiated regulations for 
business structures, to meet challenges of shareholders in decision -making and protect 
the rights of minority shareholders through  creating favorable legal environment for 
entrepreneurs.  
4 CURRENT GOALS OF MONGOLIA'S TRADE AND ECONOMIC COOPERATION  
Goals of the Government:  
Paragraph 4.1, Page 15  
The government report states that the Government of Mongolia has put forward the goals 
in foreign trade and external economic cooperation of establishing economic cooperation 
zones along with the border areas in selected regions that are close to markets and 
natural resources and have the potential for enough labour force and for indus trial 
development.  
EU Question N°80  
Could Mongolia clarify what measures it envisages to support the establishment of economic 
cooperation zones? Could Mongolia specify whether it plans to adopt specific incentives to attract 
foreign investors in these ec onomic cooperation zones, as well as provide more information 
regarding what these incentives will consist of, and on whether they are limited to foreign investors 
originating in countries that share borders with Mongolia?  
Answer: The Action Plan of the G overnment of Mongolia for 2020 -2024 includes the 
following provisions for the establishment of an economic cooperation zone.  
3.1.17 Carry out infrastructure construction work in free zones in stages, create 
conditions for the development of trade, services  and light industry for export and 
domestic markets, and support foreign and domestic investors.  
3.1.18 Increase the capacity of border crossings and bring them up to the standards of 
neighbo uring border crossings. Renovate and improve the quality of borde r checkpoint 
buildings and facilities.  
The Investment Law sets out tax stabilization incentives and other non -tax incentives to 
promote investment in Mongolia. A number of investment incentives, both tax and non -
tax, are provided in accordance with the Inv estment Law of Mongolia. Tax incentives 
include exemptions, credits, acceleration of depreciation, deduction from taxable income, 
and deduction of employee training expenses. Imported vehicles and equipment are 
eligible for customs tariff preference, as we ll as zero -rated value added tax (VAT), if used 
in certain sectors and regions. For instance, innovative nano -bio technologies, 
construction materials, petroleum, processing of agricultural goods, construction of 
power plants and railways or for export of goods.  
Non-tax incentives include, but not limited to:  
▪ to grant land use rights for up to 60 years on the basis of a contract and to extend 
the contract duration once for up to 40 years under the contract 's primary 
condition;  
▪ to render support to the investors invested in activities in the free zones, 
production and technological park and to serve with alleviated regime of 
registration and checkpoint, to treat foreign investors without discrimination;  
▪ to support the implementa tion of the prospective projects on infrastructure, 
production, science and education, and to grant required permits for increasing the WT/TPR/M/406/Add.1  
 
- 72 - 
 
  number of foreign workforces and specialists and exempting them from 
employment fees the with its alleviated regime.  
▪ to render support for financing the innovation projects and to guarantee the 
financing of manufacturing of export oriented innovation products;  
▪ to provide permission to the foreign investors, who have made investment to 
Mongolia, on multi -entry and permanen t residential visas according to the related 
laws  
▪ other incentives are specified in the applicable laws.  
Special regulation of employment in the Free Zones  
- If a legal entity or a citizen is employing a foreign national in the FZ provides, who 
derives income from such employment or service, it shall be exempt from 
employment fee.  
- If a legal entity operating in the FZ implements a project or a program for the 
purpose of capacity building, the cost shall be deducted from the taxable income 
of the given year.  
Special regulation of taxation in the Free Zones  
- Goods imported from overseas to the FZ shall be exempt from import tax, customs 
duties, VAT, and excise du ty. 
- VAT shall be charged at zero -rate when Mongolian goods are brought into the FZ 
from the customs territory.  
- Goods purchased by a visitor, worth up to 3 million MNT, shall be exempt from the 
customs duties and VAT upon entering the customs territory from  the FZ.  
- The facilities constructed and registered in the FZ shall be fully exempt from real 
estate tax.  
Relief and Exemption from Land Fees  
- Businesses in the trade, tourism and hospitality industries are fully (100%) 
exempt from land fees for the first 5  years and 50 per cent during the subsequent 
3 years.  
- An economic entity engaged in infrastructure and manufacturing business in the 
FZ shall be fully exempt from land fees during the first 10 years, in terms of land 
used or possessed in such FZ. For insta nce, energy supply, heat source, 
engineering network, pure water supply, sanitary system, auto road, railway, 
airport, communications network etc.  
- A Mongolian or foriegn nationals, legal person having a land use or land possession 
agreement in a FZ may al so be subject to relief for a specific period of time in 
consideration of such person's status of performance of obligations borne in 
respect of effective land use, possession, or protection. The Government shall 
determine the duration and percentage of su ch relief referred.  
Special regulation of visa in the Free Zones  
- Nationals of a neighbouring country adjacent to a FZ and located in a border port 
may visit the FZ without a visa for a period of 30 days. Visit by a national of a third 
country shall be su bject to the international agreement, provided in the terms and 
conditions of mutual visit, to which Mongolia is a party.  
- A foreign national bearing a residence permit in Mongolia or an "entry -exit" visa 
may visit any FZ without a visa, provided that the r esidence permit or visa is valid.  
The above -mentioned investment incentive measures are enjoyed equally by national and 
international investors.   WT/TPR/M/406/Add.1  
 
- 73 - 
 
  ICELAND  
- What is the participation of women in the economy of Mongolia?  
- Have specific barriers that limit women's participation in trade been identified?  
- Has Mongolia implemented any specific measures to encourage women's 
participation in trade and promote women' s entrepreneurship, or are such 
measures being developed?  
- Are the effects of trade policy on women and men measured and monitored, and if 
so how?  
Answer: According to the National Statistics Office, 94,675 out of the 187,126 companies 
registered in Mongoli a in 2019, of which 62,263 are in the small and medium size 
enterprises (SMEs) sector, employ more than 800,000 people, or 57 percent of the total 
workforce.  
Women -owned SMEs in Mongolia (as of 2019)  
№ Ангилал  Тоо 
1 Total number of SMEs  62,263  
2  - Women -owned SMEs from the above /68%/  42,338  
3 Total project number  451 
4 Total investment amount  47,4 billion MNT  
 From the total inves tment amount:   
5 Loans provided to the Women -owned SMEs  234 
6 Loan amount provided to the Women -owned SMEs /2019/  37,4 billion MNT  
Gender -sensitive policies are planned for the development of small and medium 
enterprises`. Considering gender differences, SME Authority is working to assess the 
impacts of the policy implementation and to take necessary measures to create a 
favourable condition for women entrepreneurs.  
Mongolia is supportive of the Buenos Aires Declaration to improve women's economic 
empowerment and reduce barriers to international trade for women -owned businesses 
and entre preneurs.  
In addition, the Government of Mongolia convened an International conference on 
"Sustainable Development Goals: Gender and Development" in June 2018 and expressed 
its readiness to take the lead in implementing the "Ulaanbaatar Declaration" to pr omote 
open and effective cooperation in the following areas:  
1. Promote decent employment opportunities, especially for female heads of 
households, persons with disabilities, migrant workers, and other marginalized 
people, through gender -responsive policy pl anning, budgeting, monitoring and 
evaluation processes; through inter -sectoral coordination at the national, regional 
and international levels; as well as by means of sharing experiences on effective 
methods to advance inclusive economic growth.  
2. Develop j oint analysis and research to holistically identify and address gender 
inequalities in the economy and in all productive spheres.  
3. Promote flexible work options that recognize the needs of female and male 
employees with family responsibilities and support gender equality in decent 
employment.  
4. Recognize the right to equal pay for women and men for work of equal value.  WT/TPR/M/406/Add.1  
 
- 74 - 
 
  5. Establish policies and put in place mechanisms to ensure safety and security in the 
workplace for female and male employees, with a focus on  zero tolerance for 
gender discrimination and sexual harassment.  
6. Cooperate on addressing adverse gender impacts of national and international 
labour migration, while ensuring and respecting the human rights of migrant 
workers.  
7. Provide support to rural wo men in their efforts to combat economic 
disempowerment and generate equitable participation in global value chains. This 
should be introduced by means of promoting gender -sensitive international trade 
policies and by fostering cooperation through results -based monitoring.  
8. Recognize gender -inclusive financial opportunities as an imperative global 
sustainable financing principle and increase women's access to financial resources.  
9. Expand opportunities for women's micro businesses and improve financial credit 
schemes that meet the specific needs of women.  
10. Promote corporate social responsibility initiatives and financing, especially among 
construction, infrastructure and extractive i ndustries, which respond to poverty 
and promote gender equality and women's empowerment.  
Since 2017, with the adoption of the National Program for Gender Equality 2017, gender -
responsive policy planning processes at the sectoral and local rural levels hav e been 
gaining momentum. The following nine sectors have been developed sector -specific 
gender -responsive policies in this period:  
- environment sector,  
- the organizations and agencies under the Minister of Finance,  
- law enforcing organizations as integrated,   
- education/science and culture/sport,  
- defense,  
- mining/geology,  
- construction,  
- foreign affairs/trade,  
- labour/population,  
- agriculture and light industry.  
 
The aimags , capital city and the districts have also developed and are implementing their 
gender -responsive local development sub -programmes.  
Sector specific gender policies concern not only human resources and employees of the 
sectors but also gender -responsive im pacts of the sector's products and services. 
Therefore, these sector -specific gender -responsive policies are significant for creating an 
enabling mechanism and sustainable structure for coordinating gender -related issues at 
all levels by training capable h uman resources, improving the understanding and 
realization of gender - equality concept in the sector's policy planning processes as well 
as gender impacts of the sector's products and services.  
Another example is the Export Development Project implemente d under the World Bank's 
support. Project result indicators are: i) Increase in export volume; ii) Number of firms 
that obtain internationally -recognized quality certification; iii) Number of firms that start 
exporting following participation in project ac tivities iv) Number of export credit 
insurance products v) Number of new export destinations vi) Total unemployment 
insurance contribution payments made to non -mining SMEs. The project focuses on 
women -owned SMEs and the result is monitored under the indic ators: ii) Number of firms 
that obtain internationally -recognized quality certification; iii) Number of firms that start 
exporting following participation in project activities.   
  WT/TPR/M/406/Add.1  
 
- 75 - 
 
  INDONESIA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
SUMMARY  
Page 10 (Para 18)  
Mongolia's SPS regime faced challenges but continued with several improvements. For example, SPS 
requirements and practices are not fully harmonized with international SPS standards. There is a 
lack of risk -based inspection, and regulator y and testing systems are noted as needing investment 
and improvement. Many of the laws on SPS have been in place for many years with few 
amendments, although new Laws on Animal Health, Fortified Food, and Organic Food were recently 
enacted.  
Question:  
1. Could the Government of Mongolia provide rationale of making stringent SPS regime, instead of 
improving the infrastructure for inspection/testing and harmonizing with international SPS 
standards before making stringent SPS regime?  
Answer:  Mongolia follows standards of the International Plant Protection Convention (IPPC), the 
World Organization for Animal Health (OIE), and Codex Alimentarius  as a reference to protect the 
health and welfare status of humans, plants, or animals and to facilit ate safe trade.  
Having in mind that the vast territory of Mongolia and the nomadic lifestyle, it is very difficult to 
build an appropriate infrastructure for inspection/testing of SPS measures at each Aimag level in a 
short period of time. With the suppor t of various international donors, Mongolia has started to work 
on infrastructure but the process is taking longer time than expected. For example, t he capacity of 
many SPS laboratories has been upgraded with the assistance of the World Bank, the Internati onal 
Fund for Agricultural Development, the European Union, and the United States Agency for 
International Development.  
Under the support of the International Finance Corporation, the Government of Mongolia has 
developed a framework for risk -based SPS con trol over imports. More than 5,500 products have 
been classified as with low, medium, or high risks. Low -risk goods require only a check of 
documentation; medium -risk products require a documentation check and inspection; and high -risk 
goods a documentatio n check, inspection, and laboratory testing.  
The Asian Development Bank's project /2016/ addresses the lack of inspection and testing systems 
as noted by the Secretariat through upgrading of laboratories and inspections facilities, 
strengthening of the in spection management system (IMS), and aligning SPS controls and 
inspections with international standards. An additional loan Agreement with the Asian Development 
Bank in 2019 has been concluded to finance the Regional Improvement of Border Services Project .  
Page 10 (Para 20)  
Despite a number of privatization initiatives in recent years, state ownership of companies continues 
to be prevalent, and some companies have been nationalized.  
Question:  
2. Could the Government of Mongolia give an opinion on why the pol icy outcome is different from 
the privatization initiatives?  
Answer:  A special regime was established to bring the sale of shares sold without a decision by the 
relevant authorities in accordance with the law, and a working group has been established to re solve 
the issue of shares in accordance with the relevant law.  
2.4 Investment Regime  
Page 30 -31 (Para 2.36)  
One recent observation from the Bank of Mongolia states the importance of FDI to the economy and 
to macroeconomic stability. FDI has had a positive effect on GDP, and has a spill -over effect into 
many sectors of the economy. However, FDI remains highly con centrated in one sector: mining. It 
is also highly concentrated in terms of source, as it is very dependent on a few countries. The 
Government is cognizant of this issue, and is currently working on a draft Investment Policy WT/TPR/M/406/Add.1  
 
- 76 - 
 
  Statement of the Government of Mongolia, with the collaboration of government and private sector 
stakeholders. The draft plans to identify and define new non -mining sectors that have potential for 
attracting FDI, eliminate investment barriers, and promote efficient long -term FDI.  
Questi ons: 
3. Could the Government of Mongolia  update the progress of a draft Investment Policy Statement?  
4. Could the Government of Mongolia  provide further detail on its plans to issue the policy and 
timelines?  
Answer:  Based on the assessment of the implementation of the Investment Law and the research 
study on international investment policy and legal acts, National Development Agency (NDA) is 
working to create a more favorable legal environment for investors by amending the existing 
investment law. After an approv al of the draft law by the State Great Khural (the Parliament), the 
"Investment Policy Statement" will be discussed at the Cabinet meeting.  
The draft Investment Policy Statement was discussed at the meeting of the Public -Private 
Consultative Committee on January 28, 2020 and relevant recommendations were reflected in the 
draft document. In addition, NDA is working on a draft Action Plan for attracting and promoting 
foreign investment in agricultural sector to be approved by the Chairman of the NDA in the f irst 
quarter of 2021. The draft Action plan includes events to promote investment seeking projects in 
the agricultural sector, create a project database, and to organize training and events to build the 
capacity of local businesses interested in attracting  foreign investment in the agricultural sector.  
3.1.3.2 Duty exemptions  
Page 47 (Para 3.38)  
Pursuant to the Law on Value Added Tax Exemption and the Law on Customs Duty Exemption, 
Mongolia exempts certain wood products from these duties. A government resol ution from 2019 lists 
certain categories of products for exemption until 31 December 2022 (Table 3.8). Another significant 
area of tariff exemption during the review period was for SMEs in certain economic sectors (Table 
3.9). In order to implement the pro visions for promoting SME development in the Action Plan of the 
Government for 2016 -20 and the Industrialization 21: 100 Program, certain products were exempted 
from customs duties based on a study of the needs of industry and feedback received from 
entrep reneurs and other stakeholders. This was a one -time exemption that applied only during 2017 -
18, and has expired.  
Question:  
5. Could the Government of Mongolia provide in details  regarding the validity period and the details 
of vegetable oil (4 digits of HS Code) which are subject to exemption?  
Answer: The following resolution is valid until July 1st, 2021, exempting vegetable oil from the 
customs and VAT taxes.  
Products  HS code  
Vegetable oil and related oil products  15.07, 15.08, 15.09, 15.10, 15.11, 15.12, 15.13, 
15.14, 1516.20.00, 1517.90.00  
Source:  Legal info, Appendices 1 to Government Resolution No. 214, 16 December 2020. Viewed at: 
https://www.legalinfo.mn/annex/details/11414?lawid=15791 . 
3.1.5 Import prohibitions, restrictio ns, and licensing  
Page 55 (Para 3.53)  
Mongolia had a regulation on the Temporary Procedures for Issuing Permits for the Export and 
Import of Strategic Food items since 2013 pursuant to the Articles 3 and 6 of the Food Law. This 
Resolution implemented the p rocedures for issuing import and export licences for a specific list of 
strategic food items that is otherwise controlled or restricted by annual quota.  
Questions:  
6. We would like to seek more explanation about:  
a. The basis for determining a product into the c ategory of strategic food items;  WT/TPR/M/406/Add.1  
 
- 77 - 
 
  Answer:  According to the Article 3.1.6 of the Law on Food of Mongolia "Strategic food" means meat, 
milk, grain seeds, wheat, flour and drinking water necessary for physiological needs of Mongolians. 
The purpose of this law is to ensure sustainable and accessible quality, nutritiou s and safe food  for 
the population.  
b. The mechanism for determining the amount of quota per year for each product in the 
strategic food item category . 
Answer:  According to the Article 6.7 of the Law on Food of Mongolia "The member of the 
Government in charge  of food matters shall determine the types and quantities of strategic food to 
be exported and imported in a given year based on the demand and supply of food, and the 
recommendation provided by the National Food Safety Council as specified in Article 18.1  of this 
law. Article 6.8 of this law states that the Ministry of Food, Agriculture and Light Industry shall issue 
permits for export and import of strategic food in accordance with the procedures approved by the 
Government within the limit set in accordan ce with abovementioned Article.  
c. Mongolia's understanding about the provisions of the quota mechanism in accordance with 
the provisions of Article XI: I GATT regarding Quantitative Restrictions.  
Answer:  Mongolia is aware about the obligations under Article  XI:I GATT regarding Quantitative 
restrictions therefore, the Law on Food has been included in the guidelines for improving the 
Mongolian legislation until 2024 and shall be amended in accordance with the WTO rules and 
principles by 2021. In addition, Mong olia has just adopted a safeguard regulation and is currently 
working on adopting an antidumping and countervailing regulations.  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
Page 59 (Para 3.56)  
Mongolia does not have any legislation on anti -dumping, countervailing, or safeguard measures, nor 
has it established any authority to initiate or conduct investigations related to these measures. Thus, 
it has not imposed any anti -dumping, countervailing, or safeguard measures at this time.  
Questions:  
7. Could  Mongolia provide a timeline for the implementation of the safeguard law?  
8. Could Mongolia explain the contents of the safeguard law , whether it includes other trade 
remedies provisions such as anti -dumping provisions and countervailing measu res? If it does 
not include anti -dumping provisions and countervailing measures, when will Mongolia plan to 
draft these legislation s? 
Answer:  In January 2021 Mongolia has just adopted a safeguard regulation that will be shortly 
notified to the WTO Committee on Safeguard. The regulation is fully in line with the provisions of 
the WTO Agreement on Safeguard. Currently, a Working Group consisted o f members of different 
trade related public agencies and private sector (through Mongolian National Chamber of Commerce 
and Industry) is working on drafting an Antidumping and Countervailing regulation. It is expected 
that the regulation will be adopted by  the end of June 2021. The draft regulations shall be notified 
to the related WTO Committees.  
9. What actions has Mongolia taken to protect its domestic industry against unfair trade practices 
so far?  
Answer:  Mongolia did not adopt any trade remedy measures.  
3.3.2.3 WTO and international conventions or cooperation  
Page 71 (Para 3.100)  
During the review period, one specific trade concern (STC) was raised with respect to Mongolia in 
the TBT Committee; and no STCs were raised by Mongolia against other Members. The STC was 
raised in February 2020 by the Russian Federation regarding the mandatory enrichment of certain 
agricultural products with vitamins. According to the Russian Federation, this emanated from the 
Law on the Enrichment of Food Products that entered  into force in December 2019 and, in particular, 
to the enrichment of wheat flour. The Russian Federation questioned the rationale for the Law, why 
the standard was mandatory, and its consistency with international standards. The time between 
the publicati on and the entry into force of the measure was also questioned, and was noted as being 
insufficient for producers and exporters to adapt to it. Mongolia clarified a number of points, in WT/TPR/M/406/Add.1  
 
- 78 - 
 
  particular the applicable government resolution from 2018 and the subs equent standards issued in 
2019.  
Questions:  
10. Could the Government of Mongolia give some updates about the STC?  
Answer:  Mongolia responded to the questions raised by the Russian Federation through the 
Mongolian Permanent Mission of Mongolia in Geneva and had some bilateral meetings.  
11. What are the scientific reasons for this mandatory enrichment of certain agricultural prod ucts 
with vitamins?  
Answer:  The last ten years' health reports of Mongolian citizens draw the attention on the 
insufficient vitamins in the human bodies and low immunity. The lack of vitamins is being a major 
health problem of Mongolian population. Accordi ng to the Law on the Enrichment of Food Products, 
wheat flour shall be fortified by vitamins B1, B2, B6, B9, D and zinc and iron. Mandatory enrichment 
of wheat flour has been developed and approved by relevant authority based on the 
recommendations of the World Health Organization.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
2.3 Regional Cooperation and Free Trade Agreements  
Page 7 (Para 2.25)  
In order to  examine the potential of establishing a bilateral free trade agreement, Mongolia and the 
Republic of Korea conducted a joint study in 2017 and its findings were presented to the 
Government. However, bilateral negotiations were not launched yet due to the other ongoing free 
trade negotiations of the Republic of Korea with its several partners. As of October 2020, two sides 
started working on updates of statistical data and information of the above joint study.  
Question:  
12. From the Secretariat Report, Indonesia also recognise that Mongolia proposed to launch a 
feasibility study for an FTA with the Eurasian Economic Union (EAEU). Could the Government 
of Mongolia provide the update regarding the development of the plan to form a free trade 
agreement with South Korea and the Eurasian Economic Union (EAEU)?  
Answer:  Having in mind the current global trade challenges, including the ones due to COVID 19 
pandemic, the Government of Mongolia is strongly looking forward to deep the bilateral trade 
relations with t he main trading partners. As it was already mentioned in the Secretariat Report we 
are currently updating the statistical data and information of the feasibility study for the FTA with 
the Republic of Korea with the aim of starting the bilateral talks.  
Mongolia and the EAEU have established a joint feasibility study working group on a possible FTA on 
September, 2020, and held an online consultative meeting on October, 2020. Currently, both parties 
agreed to complete the joint plan of the feasibility study at the end of 2021, unless otherwise 
unforeseen circumstances. Negotiations shall depend on the outcome of the study from both parts.  
2.5 Changes in Legislation  
Page 8 (Para 2.34)  
Of economic significance are the provisions of Article 6 which states that " the land except that in 
citizen's private ownership, as well as the subsoil with its mineral wealth, forests, water resources, 
and fauna is the public property of the State. The State policy to utilize the natural wealth is based 
on long -term development p olicy and aims at guaranteeing the right of every citizen of current and 
future generations to live in a healthy and safe environment and accumulating the proceeds from 
the utilization of the mineral resources in the National Wealth Fund which will be dist ributed fairly 
and equitably.  
Question:  
13. Indonesia notes that Mongolia has just revised article 6 of the Constitution of Mongolia and 
other related provisions contained therein, to ensure all -natural resources will be distributed 
fairly and equitably to all  Mongolians. As such, according to the amended law, all -natural 
resources will be controlled by National Wealth Fund. Indonesia would like to know the practice WT/TPR/M/406/Add.1  
 
- 79 - 
 
  of the prevailing regulations in more details, including whether the regulations in place will 
likely affect Mongolian export of natural resources. Since Mongolian mineral exports reached 
USD 6.9 billion in 2019 and the contribution of mineral sector was accounted of 24.5% of 
Mongolian revenue, the clarity of the practice of the current Law becomes p aramount.  
Answer: The provision of the Constitution of Mongolia is valid onset May 25, 2020. The main concept 
of revised Article 6 of the Constitution of Mongolia is the government's policy to use the natural 
resources based on a long -term development policy, ensure security and right of every citizen to 
live in a healthy and safe environment now and in the future  through mobilizing and distributing the 
benefits of land -based resources on the National Wealth Fund.  
This includes the principl e of accumulating the state's share of wealth in the largest National Wealth 
Fund which Mongolia has been discussed many years but not implemented and distributing it equally 
to current and future citizens. The Constitution also stipulates that the use of natural resources must 
not endanger ecosystems. It was a great step to protect the country's native nature and wildlife. 
The mineral export will continue as usual and the concept of natural rehabilitation and environment -
friendly mining would develop furth er.  
2.5 Changes in Legislation  
Page 8 -9 (Para 2.37)  
By its Resolution #278 of 2018, the Government of Mongolia launched a "Mongolian Export" 
Program. The purpose of the Program is to ensure Mongolia's lasting economic growth through 
establishing a favoura ble and sustainable environment for production and export and by step -by 
step measures to expand export of non -mining products, to support the export of value -added 
products, to improve the competitiveness of export products, to facilitate trade, and to in crease 
market access to export products. The Program is being implemented in the following two stages:  
• creation of a favourable environment for the production of export goods, investment in trade 
for export, financing, taxation, and legislation; and divers ification of non -mining export 
(2018 -2020);  
4 CURRENT GOALS OF MONGOLIA'S TRADE AND ECONOMIC COOPERATION  
Page 15 (Para 4.1)  
The current Government of Mongolia has put forward the following goals in foreign trade and external 
economic cooperation:  
• establish an "Export Guarantee Fund" to provide specific support to entities exporting their 
products  
Questions for para 2.37 and 4.1:  
14. Could Mongolia explain the alignment of Resolution #278 especially for financing and Export 
Guarantee Fund with Mongolia' s commitment in SCM Agreement?  
Answer:  Mongolia continues to have a yet unrealized strong potential for fast economic growth, 
driven by higher value -added products export in both mining and the non -mining sector. Export 
financing solutions are close to non -existent and unused as of now, with very few exceptions. 
Exporters see opportunities to increase their export volumes on average by approx. 80%, if 
affordable and suitable export financing solutions would become available. The institutional 
framework of export promotion needs to be establish ed and fostered as soon as possible. The 
establishment of an Export Credit Guarantee Agency (ECA) is a critical cornerstone to the 
development of an export -oriented industry, as experience from more than 100 countries with an 
ECA shows. An Export Credit Ag ency as defined by the International Union of Credit & Investment 
Insurers (known as Berne Union) is a usually government owned (or otherwise sponsored) institution 
aimed at insuring political, commercial and credit risks arising from export contracts (and  related 
pre-export financing). In some countries the ECA also provides financing of such insured exports. 
An ECA is a typical and strong tool of national export promotion and economic policy that is in line 
with the rules of SCM Agreement.  
15. Please explain in detail about financing program as mentioned in the first stage of "Mongolian 
Export" Program. Which sectors are facilitated by the Government?  
Answer:  The Mongol Export Program is mainly meant to support the development and export of 
non-mining sector. But this does not necessarily mean that a measure such as the establishment of WT/TPR/M/406/Add.1  
 
- 80 - 
 
  ECA will not be applied to mining sector too. The incentives which the Government provides for 
exporters include:  
- Accessibility of export markets through FTAs and EPAs (APTA, M ongolia -Japan EPA),  
- Marketing the export products at international expo and trade fairs (World Expo, Shanghai 
Expo, biennial Mongolia -China Expo, ITB),  
- Export development through development partnership (Development of export clusters with 
the assistance  of the EU Trade Related Assistance to Mongolia project, World Bank Export 
development project focuses on study on export financing and skill development),  
- The Government attaches great importance to trade facilitation through effective TFA 
implementation and improved border and customs coordination,  
- Launching of Foreign trade information portal in December 2020,  
- Commitment to infrastructure projects and dry port development.  
- Provide research and capacity building support to the exporters.  
16. The Secretariat  mentioned that the first stage implemented until 2020. We Would like to know 
how was the result? Please give us figures on each program.  
Answer: The following activities have been implemented under the program:  
- Accessibility of export markets through FTA s and EPAs: adoption of the APTA in 2020, 
establishment and conclusion of the Joint feasibility study with South Korea, Eurasia and 
China between 2018 -2020.  
- Marketing the export products at international expo and trade fairs: Organized Expos with 
neighbou ring countries such as Russia and China, Mongol Export Forum, biennial Mongolia -
China Expo, ITB between 2018 -2020.  
- Establishment of the Information and Trade Promotion Centre in December 2020 in Berlin, 
Germany. The main goal of the centre is to provide u p to date information to interested 
traders and investors in Mongolian products.  
- Export development through development partnership: Development of export clusters with 
the assistance of the EU Trade Related Assistance to Mongolia project, World Bank Export 
development project focuses on study on export financing and skill development between.  
- The implementation of the WTO TFA and improved border and customs coordination.  
- Launching of Foreign trade information portal in December 2020.  
- Commitment to in frastructure projects and dry port development.  
- Developing and revising trade related laws and regulations in accordance with the WTO rules 
and principles.  
- Several trainings and capacity building activities to exporters have been conducted by 
relevant ins titutions.  
17. Regarding the implementation of Export Guarantee Fund, is there any direct financial 
contribution from the Government for specific industry or company? What are the criteria for 
the industry or company that are entitled to receive such funding?  
Answer:  As mentioned above the discussion about establishing an Export Credit Agency is still 
ongoing and it is based on the principle of provisions of Berne Union that does not discriminate 
between any specific industry or company. The criteria for enabli ng all beneficiaries would be non -
discriminatory and transparent. The Export Guarantee Fund has not yet been established and direct 
financial contribution has not been provided by the Government.  
Please also see the answer for question no.14.  
  WT/TPR/M/406/Add.1  
 
- 81 - 
 
  JAPAN  
Report by the Government (WT/TPR/G/406)  
 
2 MAJOR DEVELOPMENTS IN MONGOLIA'S TRADE AND ECONOMIC SECTORS (2014 -2020)  
2.3 Regional Cooperation and Free Trade Agreements  
(Question 1: Paragraph 2.22, page 7)  
Japan would like to request Mongolia to allow us to d raw your attention to the following sentence; 
"The Economic Partnership Agreement between Mongolia and Japan was ratified by the State Great 
Hural (SGH) of Mongolia on 17 February 2015 and entered into force as of 7 June 2017." Japan -
Mongolia EPA entered i nto force on 7 June 2016.  
Answer: Mongolia accepts Japan's request as proposed: "The Economic Partnership Agreement 
between Mongolia and Japan was ratified by the State Great Hural (SGH) of Mongolia on 17 February 
2015 and entered into force on 7 June 2016."  
Report by the Secretariat (WT/T PR/S/406)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
(Question 2: Paragraph 3.154, page 84)  
Aside from enforcement by Inspectors of Enforcement Department, IPOM, we Japan unders tand that 
Mongolia adopts border measures under which its customs authorities may act upon their own 
initiative to suspend the release of goods suspected of infringing rights to trademarks and/or 
copyrights and related rights. Japan would like to confirm t hat our understanding is correct.  
Answer:  Correct. In accordance with the Regulation on Importing goods related with intellectual 
property rights, customs office can suspend goods suspected of infringing intellectual property rights 
(Article 4.1.3).  
4 TRADE POLICIES BY SECTOR  
4.4.4. Transport  
4.4.4.2 Air transport  
(Question 3: Paragraph 4.170, page 129)  
Japan would like to draw the Secretariat's attention to the fact that construction and operation of 
the New Ulaanbaatar International Airport (NUBIA) ar e undertaken by different operators. Secondly, 
the details of the contract should not be seen by any third parties. Japan would like to request the 
Secretariat to revise the paragraph based on those facts as follows;  
4.170. The construction works for New U laanbaatar International Airport (NUBIA), with 
a two -way take -off and landing runway, were conducted by the Joint Venture of 
Mitsubishi Corporation and Chiyoda Corporation and is partially financed by Japanese 
development aid through Japan International Co operation Agency loan of JPY 65.7 
billion. NUBIA is to be operated by New Ulaanbaatar International Airport LLC, the 
Japan -Mongolia Joint Company established by the Japan Airport Management LLC 
(Mitsubishi Corporation, Narita International Airport Corporat ion, Japan Airport Terminal 
Co., Ltd. and JALUX Inc.) and Khushigiin Khundii Airport, State Owned LLC of Mongolia, 
based on the 15 -year concession agreement NUBIA is expected to open in 2021.  
Answer:  Mongolia would like to correct the above highlighted sen tence as follows:  
NUBIA is being operated by New Ulaanbaatar International Airport LLC, the Japan -
Mongolia Joint Company established by the Japan Airport Management LLC  (Mitsubishi 
Corporation, Narita International Airport Corporation, Japan Airport Termin al Co., Ltd. 
and JALUX Inc.) and Khushigiin Khundii Airport, State Owned LLC of Mongolia, based 
on the 15 -year concession agreement NUBIA is expected to open in 2021.  
  WT/TPR/M/406/Add.1  
 
- 82 - 
 
  KAZAKHSTAN  
Report by the Secretariat (WT/TPR/S/406)  
3.1.3. Tariffs  
 
1. Why is the total number of tariff lines applied by Mongolia based on MFN ( in 2020)  within the 
WTO tariff database (http://tariffdata.wto.org/ ) consists of 6,034 tariff lines, whereas in the Report, 
there are 6,020 tariff lin es? (table 3.4)  Besides, why in these data the numbers of ad valorem tariff 
lines are different?  
 
 Answer:  According to the information provided by the Customs General Administration of 
Mongolia, total number of tariff lines applied by Mongolia based on MFN consists of 6,020 tariff lines 
as of 2020. Table 3.5 of the Secretariat report is also shows that there are total of 6020 lines.  
 
The WTO Tariff Download Facility ( tao.wto.org/report/TariffAndTradeProfiles.aspx ) shows 
that the total number of tariff lines applied by Mongolia (MFN) con sists of 6,019 tariff lines, including 
dutiable (5855), duty free (52) and NA (112) items.  
 
2. Why the data on simple average applied MFN tariffs and bound tariffs of Mongolia in the WTO 
Tariff database are different from the Report's data? (chart 3.3)  
 
Answer:  The WTO Tariff Download Facility ( tao.wto.org/report/TariffAndTradeProfiles.aspx ) 
shows that data on simple average applied MFN tariff is 5.35 percent, whereas in the Secretar iat 
Report is 5.3 percent  as of 2020.  
 
3. Does Mongolia apply import tariff quotas?  
Answer:  Mongolia does not apply import tariff quotas.  
3.1.5. Import prohibitions, restrictions, and licensing  
 
1. What restrictive measures does Mongolia apply to protect the domestic market of agricultural 
products, including flour? What are similar measures planned to be introduced in the nearest future?  
 
Answer:  The existing restrictive measures are generally emanating from the international 
treaties to which Mon golia is a party. However, a few laws and regulations need to be aligned with 
the WTO principles and those are listed in the current “Guidance on developing legislation until 
2024”, including the Law on Food which regulates the import of agricultural products, including flour .  
 
According to the Article 6.7 of the Law on Food of Mongolia “The member of the Government 
in charge of food matters shall determine the types and quantities of strategic food to be exported 
and imported in a given year based on the demand and supply of food, and the recommendation 
provided by the National Food Safety Council as specified in Article 18.1 of this law. Article 6.8 of 
this law states that the Ministry of Food, Agriculture and Light Industry shall issue permits for export 
and import of strategic food in accordance with the procedures approved by the Government within 
the limit set in accordance with Article  18.1. The purpose of this law is to ensure high quality, 
nutritious and safe food  for the populatio n and protect domestic market .  
 
2. According to the website of the Customs service of Mongolia, the state has defined a list of goods 
subject to quantitative restrictions when imported into Mongolia. How these measures in line with 
Mongolia's obligations under the WTO agreements?  
 
Answer:  As mentioned above, there are few laws and regulations need to be aligned with 
the WTO principles and rules. T hese regulations are  listed in the current “Guidance on developing 
legislation until 2024”, including the Law on Food which regulates the measures in relation to a list 
of goods subject to quantitative restrictions.  
 
3. According to the Report, the Government of Mongolia annually determines the list of strategic 
food products for which the volume of import/export quotas is distributed by the authorized body – 
the Ministry of Agriculture and Light Industry of Mongolia. Co uld you provide information about the 
distribution of quota volumes, the requirements for importers and exporters? Is this information 
available in open sources?  WT/TPR/M/406/Add.1  
 
- 83 - 
 
  Answer:  Article 6.7 of the Law on Food states that “ The member of the Government in 
charge of food issues shall determine the types and quantities of strategic food to be exported and 
imported in a given year based on the demand and supply of food, based on the recommendation 
by the National Food Safety Council as specified in Article 18.1 of this Law.” "Strategic food" means 
meat, milk, grain, wheat, flour and drinking water which is necessary for the physiological needs of 
Mongolians; The Law on Food is available online only in Mongolian in the following link: 
www.legalinfo.mn/law/details/8912 . 
Article 6.8 of the Law on Food states that “ The State Central Administrative Body Responsible 
for Food Issues shall issue permits for the export and import of strategic food in accordance with 
the procedures approved by the Government within the limits set forth in Article 6.7 of this Law.” 
Distribu tion of quota volumes, requirements for importers and exporters are carried out in 
accordance with the regulation approved by the Government Regulation No. 329 of 2019. The 
information is available online only in Mongolian in the following link: 
www.legalinfo.mn/annex/details/10058?lawid=14606 . 
3.3.2 Standards and other technical requirements  
 
In paragraph 3.82 of the Report, the National Quality Program's specific goals include establi shing 
of an electronic foreign trade control system. In this regard, could Mongolia provide the answer to 
whether this electronic system has been developed and what is its main goal in detail?  
 
Answer:  Trade portal has been recently launched https://mongoliatradeportal.gov.mn/.  The 
main goal of this electronic trade control system is to provide information transparently to the 
exporters and importers. Relevant authorities shall be linked to this portal.  
 
In addition, paragraph 3.91 of the Report stated that two fortified food standards were issued on 
wheat flour and food -grade iodized salt under the Law on Fortified Food. Could Mongolia prov ide the 
answer to what other products are subject to develop such standards?  
Answer:  The provision 6.4.1 of the Law on Fortified Food states that public authorities 
responsible for health and food issues shall develop a list of food to be fortified. Curren tly, two 
products, including salt and wheat flour are subject to be fortified. Other products are not yet 
identified.  
3.3.3 Sanitary and phytosanitary requirements  
 
In paragraph 3.107 of the Report, it is stated that while there were some improvements, a number 
of areas with shortfalls regarding the alignment of laws with the WTO SPS Agreement or related 
international agreements/standards still remain.  
 
In this regard , could Mongolia provide the answer, whether Mongolia will apply the provisions of 
international standards, guidelines, and recommendations in case of discrepancy between the 
national legislation of Mongolia and international standards, guidelines, and rec ommendations?  
Answer:  In case of discrepancy between the national legislation of Mongolia and 
international standards, Mongolia shall follow standards of the International Plant Protection 
Convention (IPPC), the World Organization for Animal Health (OIE), and Codex Alimentarius  as a 
reference to protect the health and welfare status of humans, plants, or animals and to facilitate 
safe trade.  
4.4.3. Telecommunications  
 
1. What are the conditions for foreign legal entities to enter the telecommunication sector?  
 
Answer:  Mongolia's main law on investment remains the Law on Investment. Please find a 
detailed information in the Report by the Secretariat (WT/TPR/S/406) Paragraph 2.40 and 
Table 2.5.  
 
In addition to the information on the Sec retariat report, the Law on Broadcasting prohibits 
an issuance of a special license for radio and television network and broadcasting services for foreign 
entities.  WT/TPR/M/406/Add.1  
 
- 84 - 
 
  2. Is information about licensing in the telecommunication sector available online? If yes,  could you 
please, share the link?  
Information regarding the licensing procedure, conditions and requirements, and its 
application is available online through the CRC website: https://crc.gov.mn/en/k/1c/1m . 
  WT/TPR/M/406/Add.1  
 
- 85 - 
 
  KOREA, REPUBIC OF  
PART III: Other Questions  
Question : Corporate difficulties due to the customs clearance service lacking transparency  
Sample inspection is conducted on imported items in accordance with the order of the Mongolian 
General Agency for Specialized Inspection, but the quantity of samples is inconsistent and the 
quantity of samples required varies depending on the customs offic ials. Therefore, can the necessary 
steps be taken to ensure that sample quantities are consistently and transparently enforced?  
Answer:  The export and import of raw materials, products, substances and preparations other than 
of animal origin, which may adv ersely affect human health, shall be subject to a hygienic conclusion 
by the relevant inspection authority. Based on a formal request from the business entity, the 
inspection agency shall issue a hygienic conclusion based on the results of the laboratory i n 
accordance with the methodology and instruction approved by the Head of the General Authority on 
Specialized Inspection in 2016 and 2018 respectively. /No. А/167 and A/103/ Depending on the type 
and classification of the goods, the sample quantity shall be taken by the state inspector of hygiene 
and infection control as specified in the Attachment 3 of the regulation of 2016.  
  WT/TPR/M/406/Add.1  
 
- 86 - 
 
  MALAYSIA  
SECRETARIAT REPORT  
Page 30 -32 
2.4 Investment Regime  
2.42. As part of its investment framework, Mongolia had 44 BITs in place as at the end of July 2020, 
most of which have been in place for many years (Table 2.4). During the review period, one new 
BIT with Canada entered into force in 2017. The Agreement be tween Mongolia and Canada on the 
Promotion and Reciprocal Protection of Investment is described as having more detailed provisions 
on dispute settlement and preconditions for filing a case for arbitration compared to earlier BITs 
signed by Mongolia. As par t of its investment policy, Mongolia plans to establish new BITs and update 
existing ones in accordance with the goals and principles set forth in the model Agreement on 
Investment Promotion and Mutual Protection, which was approved by the Government in 20 19.  
Question: In reference with updating existing BITs in accordance with the 2019 revised model 
Agreement on Investment Promotion and Mutual Protection, appreciate if Mongolia could indicate 
proposed plans vis-à-vis the BIT signed with Malaysia in 1995?  
Answer:  In connection with the approval by the Government of Mongolia of the Model Agreement 
on Investment Promotion and Mutual Protection in 2019, the Ministry of Foreign Affairs and the 
National Development Agency have jointly approved and are implementi ng an "Action Plan". In the 
first phase, we have started working on establishing new BITs, and updating BITs that have expired 
and need to be renewed in the near future. We have included renew ing the Investment Promotion 
and Reciprocal  Protection Agreement  (BIT) with Malaysia in the second phase of the Action Plan.  
SECRETARIAT REPORT  
Page  79 
3.3.6 Government Procurement  
3.130. Since 2008, the Government has been working to introduce international best practices in 
public procurement by improving its relevant laws and regulations. The Public Procurement Law of 
Mongolia (PPLM), adopted in 2011 and subsequently amended, regulates all stages of the 
procurement process. The most recent amendments entered into force in 2019, and introduced 
significant chang es to the public procurement process by: (i) implementing a preconditioned 
procurement procedure127 and a "green procurement" concept128; (ii) clarifying the roles and 
responsibilities of procurement inspectors; and (iii) providing for an additional condit ion for forfeiting 
bid securities. The PPLM stipulates four procurement methods: open bidding, price quotations, direct 
contracting, and limited bidding.  
Question: Appreciate if Mongolia could explain further the elements of community participation in 
public procurement and the green procurement  concept contained within the Public Procurement 
Law of Mongolia (PPLM) with regards to how its implemented and further how it is reflected in the 
electronic procurement (e -procurement) system?  
Answer: Community part icipation in public procurement is first introduced in 2011. Following 
documents govern the matters related to community participation in public procurement:  
• The PPLM;  
• The procedure for procurement with community participation;  
• The standard bidding documen t for procurement with community participation.  
Community participation is allowed for the procurement of goods, works, and services with cost 
under MNT 20 million and at the smallest level of administrative division. In the Mongolian case, 
those are 365 " soums" for the state and 9 "districts" for the capital city.  
To participate in a bidding, local citizens establish community groups, local governor offices register 
groups in their record, and disclose information of registered groups to the local communi ty. Only 
community groups are allowed to participate in the bidding, they compete amongst themselves, 
other members of the community are allowed to be involved in the selection process and the WT/TPR/M/406/Add.1  
 
- 87 - 
 
  shopping method is used to determine a winner. No restrictions are imposed on the type of goods, 
works, and services of the procurement except ones that require official state permits and 
professional licenses.  
The procurement with community participation can easily be carried out through the e-procurement 
system ( www.tender.gov.mn ). One may know that Mongolia is a sparsely populated and remotely 
dispersed country. Due to this nature, technological knowledge procuring entities and inadequacy of 
IT infrastructure and equipment at the community level create complications  in conducting t he 
procurement with community participation  electronically. In most cases, we use traditional/ paper -
based  bidding for procurement .  
The green procurement concept is fairly new to the public procurement of Mongolia and it was first 
recognize d in the PPLM in  2019. The definition of green procurement and mandated directions for 
procuring entities to use the "green" approach when preparing technical specifications for bidding 
were amended in the PPLM. There is room for improvement in accommodati ng the green 
procurement in the public procurement of Mongolia in terms of standardizing green products, 
certifying green manufacturers, etc.  
Related clauses  of the PPLM .  
Community participation:  
71.2. Within the soum  and district budget framework, procurement of goods, works, and services 
with a cost of up to MNT 20 million, shall be undertaken with community participation.  
71.3. Procedure, instructions, and standard documents in procurement with community participati on 
shall be approved and enforced by the state central administrative body in charge of finance and 
budget.  
71.4. A representative of local citizens shall be involved in the selection process of procurement with 
community participation and the principle fo r wider local community participation in the 
implementation and performance of the project shall be followed.  
Green procurement:  
5.1.28."green procurement" means procurement of goods, works, and services that are energy and 
natural resource -efficient, to p rovide sustainability of economically viable consumption, with no 
adverse effect on the environment and human health, do not release greenhouse emission and 
waste, and to create a green environment which adapts climate change;  
11.1. The procuring entity mu st fulfil the following requirements in preparation of technical 
specifications:  
11.1.1. define the goods, works, and services in terms of their purpose, energy and natural resource 
efficiency, economically viable consumption, usage, quality, technical characteristics, no adverse 
effect on the environment and human health, the release of greenhouse emission and waste, and 
creation of the green environment, but not in terms of their design or descriptive characteristics.  
  WT/TPR/M/406/Add.1  
 
- 88 - 
 
  PERU  
Pregunta  
Informe de la Secretaría de la OMC (WT/TPR/S/406)  
WT/TPR/S/406  
"4.24. El sector de producción de la cachemira se divide en cuatro subsectores que 
comprenden: fábricas de elaboración integrada, fábricas de elaboración simple, pymes 
que fabrican artículos de punto y  microempresas familiares (recuadro 4.2). En 2019 el 
sector daba empleo a 10.000 personas, el 90% de las cuales eran mujeres, en su mayoría 
menores de 45 años. En consonancia con el principio de fomentar las actividades de 
producción ulteriores, en los últ imos años se ha reforzado la capacidad del sector de 
producción de la cachemira en todos los ámbitos del proceso de elaboración, que abarcan 
el lavado, la separación, el hilado y la fabricación de textiles y de artículos de punto. En 
2019, las ventas alcan zaron un valor de MNT 1.300 millones."  
La Misión del Perú ante la OMC reconoce los esfuerzos del Gobierno de Mongolia por lograr el 
desarrollo del sector de la cachemira y su internacionalización, y subraya con satisfacción la amplia 
participación de la mu jer en la industria de la cachemira. Sobre el particular, ¿existen cifras de 
cuántas empresas de la industria de la cachemira son propiedad o lideradas por mujeres? De otro 
lado, ¿existen en Mongolia otras industrias proyectadas al comercio internacional e n las que la 
participación laboral de la mujer sea elevada?  
 
The Mission of Peru to the WTO recognizes the efforts of the Government of Mongolia to achieve the 
development of the cashmere sector and its internationalization, and underlines with satisfaction the 
broad participation of women in the cashmere industry. In this regard, are there figures for how 
many companies in the cashmere industry are owned or led by women? On the other hand, are 
there other industries in Mongolia projected into international trade in which the labor participation 
of women is high?  
Answer:  The cashmere sector is an important sector of Mongolia's economy, supporting about a 
thousand nomadic herders and women employees. Mongolian cashmere is globally recognized for 
its high quality and softness. Unfortunately, the vast majority of Mongol ia's cashmere is exported as 
a raw product at a very low price, providing little return for the SMEs. Mongolia is facing a real 
chance to fully integrate its cashmere industry. The majority of production was first -stage 
processing, with final product manuf acturing only accounting for 10%. The local infrastructure is not 
developed enough to process cashmere into high value. The cashmere sector ultimately helps our 
efforts toward women's economic empowerment. Women are the backbone to Mongolia's cashmere 
industry. 
Total of 70% or 110 about plants out of the more than 160 wool and cashmere processing plants 
are run by women, and women make up 90% of the sector's 10,000 employees. There are more 
than 30 beauty companies, all of which are women. Women also make u p the majority of the 
garment industry.  
According to the National Statistics Office, 94,675 out of the 187,126 companies registered in 
Mongolia in 2019, of which 62,263 are in the small and medium size enterprises sector, which 
includes the cashmere sector , and employ more than 800,000 people, or 57 percent of the total 
workforce.  
Women -owned SMEs in Mongolia (as of 2019)  
№ Ангилал  Тоо 
1 Total number of SMEs  62,263  
2  - Women -owned SMEs from the above /68%/  42,338  
3 Total project number  451 
4 Total investment amount  47,4 billion MNT  
 From the total inves tment amount:   
5 Loans provided to the Women -owned SMEs  234 
6 Loan amount provided to the Women -owned SMEs /2019/  37,4 billion MNT  
 WT/TPR/M/406/Add.1  
 
- 89 - 
 
  RUSSIAN FEDERATION  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
Page 28  
Question № 1:  
Could Mongolia please describe which measures have been undertaken, or are planned to be 
undertaken to initiate negotiations for membership in  the WTO Agreement on Trade in Civil Aircraft 
and Agreement on Government Procurement?  
WTO Agreement on Government Procurement :  
Answer:  Mongolia is currently in the initial stage of conducting a comprehensive study on the 
provisions of the WT O Government Procurement Agreement, its compliance with the domestic law, 
potential risks and impacts of acceding to the GPA towards the domestic economy and identifing 
potential measures to mitigate negative impacts in the case of acceding to the GPA etc.  The subject 
matter is in the early stage of internal discussion of the cabinet.  
WTO Agreement on Trade in Civil Aircraft:  
Answer:  The State Great Khural (Parliament) of Mongolia ratified the WTO's Agreement on Trade 
in Civil Aircraft along with the 2015 Annex to the Agreement on October 12th of 2018. Mongolia is 
working to amend its Law on Customs Tariff and Duties and the Law on Value -added Tax to exempt 
custom duties and charges on products covered by the Agreement.  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
Page 29  
Question № 2:  
Could Mongolia please clarify what are the reasons for the absence of notifications in such areas as 
agriculture, customs valuation, quantitative restrictions, and import licensing?  
Answer : Similarly, to other developing countries, Mongolia faces capacity and institutional 
challenges in fulfilling its notification obligations under the WTO Agreements. Mongolia requested 
the WTO Secretariat in 2018 of technical assistance in developing the c apacity of the Government 
officials in preparing and submitting the required notifications. Upon Mongolia's request, in 2020, 
the first activity conducted by the WTO was the National Seminar on the Agriculture Notifications 
which Mongolia sees as one of th e priority areas where local capacity needs improvement. Capacity 
building measures in other areas are currently in the planning.  
Question № 3:  
When does Mongolia plan to fulfill its notification obligations?  
Answer:  Mongolia intends to fulfill its notifi cation obligations under the WTO Agreements. Please 
also, see the Reply to the Question N.2.  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
Page 29  
Question № 4:  
According to the WTO Secretariat's report Mongolia has the Foreign Economic Relations Program 
Implementation Action Plan, 2015 -20, that contains number of ambitions in terms of pursuing 
bilateral and regional FTAs, including conducting studies or investiga ting the possibility of concluding 
FTAs with several countries. Could Mongolia please provide the link on such Foreign Economic 
Relations Program Implementation Action Plan in English?  
Answer:  English version of the above mentioned Programme is not available.  WT/TPR/M/406/Add.1  
 
- 90 - 
 
  Question № 5:  
Has the new Foreign Economic Relations Program Implementation Action Plan been elaborated for 
the next period of time (starting 2021)? Could Mongolia please provide informati on on any FTA 
feasibility already conducted or/and already conducted? With what countries is Mongolia under FTA 
negotiations now?  
Answer:  Mongolia is currently working with the Korean side to further the joint feasibility study on 
a potential free trade ag reement between the two countries. Both sides have planned to initiate 
internal legal procedures and once the internal legal procedures are completed, the parties will be 
able to discuss the timeline for the negotiations.  
Mongolia and the EurAsian  Economic Union have established a joint feasibility study working group 
on possible FTA on September 2020, and held an online consultative meeting on October 2020. 
Currently, both parties agreed to complete the joint plan of the feasibility study at the e nd of 2021, 
unless otherwise unforeseen circumstances. Negotiations shall depend on the outcome of the study 
from both parts.  
Mongolia and China have established a joint feasibility study working group on a potential FTA 
between the two countries on Septem ber 2020 and held two meetings in Beijing and Ulaanbaatar in 
2018 and 2019 respectively. Parties have exchanged a draft text of the report of joint feasibility 
study on a potential FTA between China and Mongolia at the end of the 2020.  
3 TRADE POLICIES AN D PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 35  
Question № 6:  
Could Mongolia please provide the texts or the link to the Customs Law, 2008, and the Law on 
Customs Tariffs and Cu stoms Taxes, 2008, in English?  
Answer:  The latest version of the Law on Customs tariffs and Customs duties and the Law of 
Mongolia on Customs shall be notified to the WTO Committee on Customs Valuation within March 
2021. The  legislation can be found both in English and Mongolian on the following link 
https://www.legalinfo.mn/law/d etails/15927?lawid=15927 . 
Question № 7:  
Could Mongolia please elaborate on the approval of a new draft Customs Law?   
Answer:  A new draft Customs Law of Mongolia is expected to be approved in 2022 where the 
Customs General Administration of Mongolia has established a working group, which is currently in 
the process of drafting a law in line with the international conventions, tre aties and other agreements 
that Mongolia has acceded. The new draft Customs Law shall mainly focus on transparent and 
efficient regulatory framework for international trade movement.  
Question № 8:  
Could Mongolia please provide the list of bilateral agreem ents on cooperation and mutual assistance 
in customs matters that have been concluded by Mongolian Customs since 1993? With what 16 
trading partners have such agreements been concluded?  
Answer:  As of today, the Customs General Administration of Mongolia ha s signed intergovernmental 
agreements and Memorandum of Understanding on "Cooperation on Customs Matters and Mutual 
Assistance" with the Russian Federation, People's Republic of China, Hungary, Republic of Korea, 
USA, UK, Kazakhstan, Bulgaria, Czech, Turke y, Ukraine, Kyrgyz, India, Vietnam, Nepal and Belarus. 
The Customs General Administration is continuously working on strengthening the bilateral 
cooperation with the customs organizations of other countries, learn from their best practice, build 
human capa city and jointly organize trainings and seminars for border control officers.  WT/TPR/M/406/Add.1  
 
- 91 - 
 
  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 35, para 3.3  
The main procedures for importation are preparing and providing customs documents for the 
declaration of goods, customs inspection of customs documents, inspection of the goods and means 
of transport, levying customs duties and other taxes and payments thereto, and  granting permission 
and release of goods to cross the border.4 In 2008, Mongolia established a risk management system 
on imports with three categories: (i) simplified examination (category "Green"); (ii) document 
examination (category "Orange"); and (iii)  physical inspection (category "Red").5 During the first 
seven months of 2020, 87% of imports and 24% of exports were physically inspected, and 
approximately 1% were subject to post -clearance audit. Mongolia has provisions for the use of 
customs brokers an d customs warehouses.  
Question № 9:  
Could Mongolia please elaborate further and provide a more detailed information concerning 
provisions for the use of customs brokers and customs warehouses  in Mongolia mentioned in para 
3.3 above? Could Mongolia please p rovide a resource link or legal act containing this information in 
English?  
Answer:  Information concerning provision for the use of custom warehouses can be found in Article 
141-148, for the use of custom brokers in Article 66 to 70 of the Law of Mongolia on Customs . The 
legislation can be found both in English and Mongolian on the following link  and the website on the 
Mongolia Trade Portal.  
https://www.legalinfo.mn/law/details/15931?lawid=15931  
https://www.mongoliatradeportal.gov.mn/index.php?r=site/display&id=56  
https://www.mongoliatradeportal.gov.mn/  
3 TRADE PO LICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 36  
Question № 10:  
Could Mongolia please provide information concerning the plans and ongoing work towards 
implementing a single window mechanism.  
Answer:  The preparatory work for the establishment of "Single Window System" has begun within 
the framework of Asian Development Bank's Regional Improvement of Border Services /RIBS/ 
project. The PwC Mongolia is curr ently conducting business process analysis in order to redesign 
processes and procedures to incorporate and coordinate border management approach to operations 
including cargo examinations and information sharing. The current documentary requirements for 
all agencies shall also be examined to streamline into an agreed set of documents needed to clear 
cargo.  
Preparation for the single window shall also include an agreement from all border agencies to work 
together to share information and link the current I T system where the lead agencies shall manage 
single window and financial implications of maintaining and upgrading the system. The development 
of a national single window in Mongolia shall be based on a functional requirement established in 
these preparat ory works. The "Single Window System" is planned to be fully implemented in 2025.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Table 3.1 Customs fees  
Page 36  
Question № 11:  
Could Mongolia please provide information concerning cases of affixing customs seals for goods and 
means of transport crossing the customs border.  WT/TPR/M/406/Add.1  
 
- 92 - 
 
  Answer:  According to Article 261 of the Law of Mongolia on Customs and the "Procedur e for Customs 
Marking of Goods and Vehicles" approved by Order No. 756 of the Director General of the Mongolian 
General Customs Administration in 2008,  the Customs shall mark goods entering the country for 
customs control purposes. Customs markings are cla ssified as seals and markings depending on the 
types of goods.  
 
Also, in accordance with the Article 261.6 of the Customs Law of Mongolia and Article 22.2 of the 
Customs Convention on the International Transport of Goods under the Cover of TIR Carnets, the 
goods with markings and seals affixed by foreign customs shall be sent directly for customs control.  
Question № 12:  
Is this measure obligatory for traders? If yes, could Mongolia please elaborate on the cases, goods 
and means of transport to w hich this measure can be applied?  
Answer:  Yes, the case is related to the transshipment (for instance, between border customs house 
to inland customs house; and from inland customs house to border customs house). The additional 
information can be found in Articles 78.1.4, 88.2, 96.2, 103.1 -2, 122.1 -2, 129.2, 181.1, 181.2, 
181.2.2, 181.2.3, 184, 189.1.3, 261.1 of the Customs Law of Mongolia. The legislation can be found 
both in English and Mongolian on the following link  and website of Mongolia Trade Portal.  
https://www.legalinfo.mn/law/details/15931?lawid=15931  
https://www.mongoliatradeportal.gov.mn/index.php?r=site/display&id=56  
https://www.mongoliatradeportal.gov.mn/  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 37  
Question № 13:  
According to the TFA WTO members shall provide an advance ruling with regard to the goods' tariff 
classification and the origin of the goods. Currently Mongolia has provisions for advance rulings only 
for classification.  
Could Mongolia pleas e elaborate on its plans and deadlines (if any) for implementation of advance 
rulings on the origin of the goods?  
Answer:  A request for a postponement from 2021 to 2024 shall be submitted to the WTO since 
technical assistance is required to ensure the impl ementation of Article 3 – Advance Rulings  of the 
WTO Trade Facilitation Agreement.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
Page 41  
Question № 14:  
Could Mongolia please clarify the differences betwe en MFN and normal types of customs tariffs on 
imported goods that are provided for in the Law on Customs Tariffs and Customs Taxes?  
Answer:  Law on Customs Tariffs and Customs Duties Article 4.2. states that "The Customs tariffs 
on imported goods consist of  basic tariffs, the most -favoured nation (MFN) tariffs and preferential 
tariffs. The basic tariffs (basic rates) twofold the MFN tariffs. The preferential tariffs are agreed by 
international treaties" (This provision is revised by the Law of 3 December 201 5).  
Under the Law, MFN rates apply to goods from Mongolia's trading partners that offer MFN status to 
Mongolia (WTO Members and Belarus) and goods originating from other countries are dutiable 
according to the general rates, which are double the MFN applied ra tes.  
Question № 15:  
What is the reasoning for differences in the rates of seasonal duty depending on the border post 
where importation takes place?  WT/TPR/M/406/Add.1  
 
- 93 - 
 
  Answer:  According to the Law of Mongolia on Customs Tariffs and Customs Duties allowed to adopt 
temporary b ase tariff. (Article 4.8. The Customs tariffs may be adopted on a temporary base, the 
temporary tariffs are applied for a period not exceeding 6 months per year. Article 4.9. The Customs 
tariffs may be adopted by reference to a specific border point in a r emote area or territory of the 
country.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
Page 47  
Question № 16:  
Could Mongolia please clarify the reasons for exemption  until 31 December 2022 of certain woo d 
products from customs duties? What is the reason for determination of such deadline?  
Answer:  It is five years per term and extendable decision. Since its first endorsement, the 
Government of Mongolia has extended two times, prior to the deadline, Ministry of Environment and 
Tourism shall submit the draft law to the Parliament of Mongolia.  
3 TRADE  POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Other charges affecting imports  
3.1.4.2 Excise  
Page 52  
Question № 17:  
According to the TPR excise duties rates can also vary depending on the port of entry. Could Mongolia 
please provide the list of such rates and goods to which such rates are applied, as well as reasoning 
for linkage between the ports of entry and rates applied.  
Answer:  Currently, Mongolia imports more than 80 percent of its oil products through tw o main 
railway border crossings. Mongolia's policy in increasing the import of petroleum products through 
the regional road border crossings while reducing transportation and logistics costs highlights 
difference on the excise duties linked. According to t he Law on Excise duties can vary depending on 
the port of entry.  
  Port border  TPR excise duties - MNT 
Petroleum /Octave rating/  Diesel  
Until 90  90 and up  
1 Tsagaannuur, Yarant, Borshoo, Artssuuri, Tes, Burgastai, 
Gashuunsukhait, Shiweekhuren, Bayankhoshuu, Bichigt, 
Khavirga  0-215,000  0-217,000  0-221,000  
2 Khankhi, Ulimaikhan  0-223,000  0-229,000  0-226,000  
3 Sukhbaatar, Zamiin -Uud, Altanbulag  0-750,000  0-750,000  0-850,000  
4 Ereentsav  0-750,000  0-750,000  0-850,000  
Source:  Order No.  6. https://www.legalinfo.mn/law/details/434 . 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.2.1 Framework  
Page 68, para 3.91  
The Law on Fortified Food, 2018, entered into force on 31 December 2019. It requires the 
compulsory enrichment of certain foods to protect the health of the population. It specifies that the 
MASM shall approve the national product stand ard for each type of fortified food. As at October 
2020, two such fortified food standards had been issued on wheat flour and food -grade iodized salt. 
Both importers and producers are obliged to meet the food fortification standards. The Law also 
contains several provisions to support its implementation. There are requirements for the Parliament 
to determine the customs duty, tax, and credit policies for the import of equipment and concentrates 
for food enrichment. Furthermore, the Law provides for state su pports and incentives; however, 
according to the authorities, the State does not provide them to entrepreneurs.  WT/TPR/M/406/Add.1  
 
- 94 - 
 
  Question №18:  
Could Mongolia please provide the following information on the procedure of wheat flour importation:  
 
− detailed information on th e procedure of applying and receiving the certificate for 
fortified food;  
Answer:  According to Article 16.2 of Law on Food of Mongolia, a member of the Government in 
charge of food matters (MOFALI) shall approve the procedure for registration and release for public 
utilization of fortified food and fortification concentrates .  
Article 1.2 of the "Regulation on procedures for registration and release for public utilization of 
fortified food and  fortification concentrates  … ", approved by the Minister of Food, Agriculture and 
Light Industry in 2019 (Order No. A -515) states that the MOFALI  shall exercise management and 
organizational rights on registering and assigning a number to fortified food and fortification 
concentrates .  
Detailed information on the above procedure can be found in the following link: 
www.legalinfo.mn/law/details/14928  /Mongolian/ . 
Article 11.1 of the Law on Fortified Food states that "The specialized inspection body shall approve 
the procedure for mandatory control over food fortification activities." "Regulatio n on Supervision of 
Mandatory Food Processing" has been approved by the GASI in 17 June 2020. /Order No. A/79/.  
Article 11.3 of the Law on Fortified Food states that "The state inspector for food quality and 
standards at the border checkpoints and inland customs houses shall allow the import of fortification 
concentrates into the territory of Mongolia based on its registration by the state central 
administrative body in charge of food matters and issue export certificates and import declarations."  
The Min istry of Food, Agriculture and Light Industry (MOFALI) shall exercise registration and control 
over fortified food.  
Detailed information on the above procedure can be found in the following link: 
www.legalinfo.mn/law/details/13353   
− the list of required documentations, inspections and examinations of the wheat flour that 
should be followed in order to enter Mongolia.  
1. Import statement for animal and plant origin products shall be issued by the GASI p rior to the 
importation.  
2. Based on the import statement for animal and plant origin products issued by the GASI, the 
entity will have the right to begin importation.  
3. When imported goods are going through the port of entry, the inspection will be carried out 
by the inspector conducting inspection at the border crossing point.  
Inspection for documentation  
a) Inspection of documentation (whether it matches with import statement issued by the 
GASI),  
b) License to export and import strategic food,  
c) Certificate of origin provided by the exporting country  
d) Phytosanitary certificate  
e) Certificate of conformity  
f) ISO, HACCP certificate copies  
Physical inspection : Goods that passed inspection for documentation shall go thorough physical 
inspection.  
Laboratory analysis : A sample of the goods shall be taken for laboratory analysis and subjected to 
analysis in accordance with relevant laws and regulations.  
Exemption from inspection : Goods that meet the standards required by Mongolia, shall be exempt 
from further i nspection.  WT/TPR/M/406/Add.1  
 
- 95 - 
 
  Question №19:  
Could Mongolia please provide the list of accredited laboratories for the control of the flour 
fortification?  
Answer:  The National Reference Laboratory for Food Safety under the General Agency for 
Specialized Inspection (GASI) is working to develop methodology for the determination of vitamins 
B1, B2, B6, B9, D and zinc and iron in fortification concentrates and wheat flour, and getting 
approved by the standard by 2021. Mongolia shall provide information to the Russian Federation 
once the methodology is approved by the National Accreditation Center (NIC).  
Question №20:  
As of February 2021, what is the share of fortified wheat flour on the wheat flour market of Mongolia?  
Answer:  At this moment the statistics on the share of fortified flour on the wheat flour market is 
not available.  
Question №21:  
According to the Law, all fortified food products shall be marked with a particular sign indicating the 
fortification of food products. Could Mongolia please clarify which authorized body gives the permit 
for the labeling? What specific characteristics should the fortified prod uct possess? What documents 
are necessary to obtain in order to receive the permission from the competent authorities to use the 
legal sign of fortification on the product?  
Answer:  According to the Article 6.3.3 of the Law on Fortified Food, the Minister for Food, Agriculture 
and Light Industry approves the "Regulations of usage of signs and stamps indicating fortified food" 
in 2020 (No. A -27, 2020)  
The following are the requirements for the usage of signs and stamps, indicating the product is 
fortified:  
- The signs and stamps indicating that the product is fortified food shall be registered in 
accordance with the grounds and procedures provided by law;  
- The signs and stamps for fortified food can be downloaded from the website 
www.mofa.gov.mn  and used. www.mofa.gov.mn/exp/blog/10/2039/Mongolian/   
- Manufacturers of compulsorily fortified food shall use the label indicating that the food is 
fortified only for a product which is fortified;  
- Mandatory fortified food producers shall use the symbol in Figure 1 of the Regulation.  
Detailed information in the  above procedure can be found in the following link: 
www.legalinfo.mn/law/details/15078?lawid=15078  /Mongolian/ . 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Producti on and Trade  
3.3.2.3 WTO and international conventions or cooperation  
Page 71, para 3.100  
The STC was raised in February 2020 by the Russian Federation regarding the mandatory enrichment 
of certain agricultural products with vitamins. According to the Russian Federation, this emanated 
from the Law on the Enrichment of Food Products that entered into force in December 2019 and, in 
particular, to the enrichment of wheat flour. The Russian Federation questioned the rationale for the 
Law, why the standard w as mandatory, and its consistency with international standards. The time 
between the publication and the entry into force of the measure was also questioned, and was noted 
as being insufficient for producers and exporters to adapt to it. Mongolia clarified  a number of points, 
in particular the applicable government resolution from 2018 and the subsequent standards issued 
in 2019. The matter remained ongoing in the Committee as at May 2020.  
Question №22:  
Could Mongolia please clarify d oes the Mongolia's te chnical regulation on food fortification conform 
to the international standard? If yes, to which standard?  
Answer:  Mongolia's technical regulation on fortified flour and wheat flour fortifier have been 
developed and approved by relevant authority based on  the recommendations of the World Health 
Organization.  WT/TPR/M/406/Add.1  
 
- 96 - 
 
  ➢ Technical general requirements for fortified flour. MNS 6812 -2019 
➢ Technical general requirements for wheat flour fortifier. MNS 6811 -2019  
Question №23:  
How does the dosage of vitamins and mineral substances correlate to the dosage used in the 
international standard?  
Answer:  According to the relevant laws and regulation s wheat flour shall be fortified by vitamins 
B1, B2, B6, B9, D and zinc and iron as stated in the abovementioned question 22.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
Pages 75 -76 
Question №24:  
Could Mongolia please clarify what type of anti -competitive practices, despite agreements and 
concerted actions are contained in the anti -monopoly legislation of Mongolia?  
AFCCP answer:  The core competition legislation o f Mongolia is the Competition Law which was 
amended in 2010. The main objective of the Competition law consist of assessments of natural 
monopoly and dominant business entities, prohibition of major types of violations including cartels, 
bid-riggings, abus e of dominant position, unfair trade practices, restriction of competition by the 
administrative body and the merger review.  
Question №25:  
Does the Mongolia's Authority for Fair Competition and Consumer Protection (AFCCP) have the 
empowerment to review e conomic concentration transactions? Which are the thresholds for 
obligatory approval of the transaction by antimonopoly authority?  
AFCCP answer:  The Article 8.1 of the Competition Law highlights, dominant business entities shall 
submit an application to the Authority for Fair Competition and Consumer Protection where they 
intend to restructure through merger, purchase of more than twenty percent o f common shares or 
more than fifteen percent of preferred shares of the competitor company, which sells the same 
products in the market or merge and amalgamate with related business entities.  
 
Therefore, the AFCCP issues a conclusion of refusal or approva l depending on the research whether 
the merging of the business entities restrict competition and market share or market power shall 
increase before the merger of companies in the related market.  
 
In addition, according to Article 10.1 of the Competition L aw, the court shall upon a claim of the 
Authority for Fair Competition and Consumer Protection decide on the decision to reorganize the 
dominant legal entity by division or separation where it is determined that it has engaged in a 
monopolizing activity tw ice or more in a single year and has repeated the activity despite being 
subject to legal sanctions.  
Question №26:  
Does the Law on Competition (2019) have a provision on possibility of its extraterritorial application?  
AFCCP answer:  The provision regardin g to the Article 3. Scope of law in the Competition Law/2010/ 
has not amended in the draft of the Competition law /2019/, which states that the scope of this law 
shall apply where it is proven by evidence that a business entity engages outside of the borde r of 
Mongolia in activities prohibited by this law and that such activities affects the markets of Mongolia.  
Question №27:  
Could Mongolia please clarify what sanctions could be imposed for violation of articles of the Law on 
the Competition (2019)?  
AFCCP  answer:  The sanctions for violation of the Аrticles of the Competition Law are stated in the 
Law on Infringement /2017/. Sanctions for the violation of competition include, fines ranging from 
3 to 6 percent of the previous year's sales revenue, 2 million to 40 million MNT and the violators 
shall be compensated for the damage caused and shall confiscate illegally obtained income. The 
main sanctions are described in more detail below:  WT/TPR/M/406/Add.1  
 
- 97 - 
 
  According to the Article 10.7.9 of the Law on Infringement, а business entity shall be fined 3 percent 
of the previous year's sales revenue for damages caused by the natural monopoly and dominant 
business entity's illegal monopoly and illegal use of its dominant position and the conduct of 
dominant activities prohibi ted by law.  
According to the Article 10.7.8 of the Law on Infringement, If a legal entity has entered into an 
agreement or transaction aimed at restricting competition, which is contrary to the public interest, 
or if the business entity has supported or pa rticipated in these agreements or activities prohibited 
by law, the legal entity shall be compensated for the damage caused, shall be fined equal to 6 
percent of the previous year's sales revenue.  
According to the article 10.7.4.7 of the Law on Infringemen t, If the business entity committed 
violations that diverting the competitor from actual circumstances and administering pressure on 
them when participating in the activity of procuring products, works and services by a tender, auction 
and state or locally  owned property, a person shall be fined two million MNT and a legal entity shall 
be fined twenty million MNT, and shall confiscate illegally obtained income.  
According to the article 10.7.7 of the Law on Infringement, If the dominant business entity did n ot 
submit an application to the Authority for Fair Competition and Consumer Protection, a person shall 
be fined MNT 4 million, a business entity shall be fined MNT 40 million.  
According to the article 10.7.4 of the Law on Infringement, business entities wh ich did activities 
aimed at restriction of competition, a person shall be fined MNT 2 million and a legal entity shall be 
fined MNT 20 million and shall confiscate illegally obtained income.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.1 Overview  
Page 80, para 3.134  
In 2015, Mongolia adopted the National Strategy for the Development of Intellectual Property. The 
strategy was implemented between 2015 and 2018. Mongoli a received legislative assistance in 2017 
from WIPO in the area of patent and industrial design rights. Subsequently, legislation was drafted 
to revise existing IP laws, namely the Patent Law, the Law on Copyright and Related Rights, and the 
Law on Trade M arks and Geographical Indications. The Patent Law of 25 June 1993 was amended in 
September 2016. Parliament adopted the Law on Intellectual Property on 23 January 2020, and it 
will enter into force on 1 December 2020. According to the authorities, the Law aims to address 
overlaps, conflicts, and other issues within existing IP laws.  
Question №28:  
The WTO Secretariat's report indicates that in 2015 Mongolia adopted the National Strategy for the 
Development of Intellectual Property, which was implemented in  2015-2018. Could Mongolia please 
confirm that this strategy is still in place? Could Mongolia please clarify whether the goals of the 
strategy have been fully achieved?  
Answer:  The previous implementation of the National Strategy for the Development of Intellectual 
Property took place between the year 2015 to 2018. During the implementation period, goals and 
objectives set forth in the Strategy had not been fully achieved within  the framework of the Strategy.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.3 Industrial property  
3.3.7.3.2 Trademarks and geographical indications  
Page 83, para 3.147  
The EU-Mongolia Partnership and Cooperation Agreement entered into force on 1 November 2017, 
and it states, inter alia, that the parties will conclude an agreement on geographical indications. 
According to a roadmap published by the European Commission, the Ag reement would cover EU 
products in Mongolia and Mongolian products commercialized in the European Union that bear 
geographical indications. As at June 2019, 20 geographical indications were registered. Regarding 
the protection of goods with a specific geog raphical origin, Mongolia, as the world's second largest 
cashmere producer and accounting for approximately 25% of global production, protects its WT/TPR/M/406/Add.1  
 
- 98 - 
 
  cashmere's reputation through two certification marks of the Mongolian Fiber Mark Society: Pure 
Mongolian Cas hmere and Made with Mongolian Cashmere.  
Question №29:  
Could Mongolia please provide an updated information on the progress made in preparation of the 
EU-Mongolia Agreement on geographical indications (in particular, the stage the Agreement 
negotiations are at)? What scope of protection will the Agreement provide?  
Answer:  We cannot provide the exact timeline and is currently working to conclude it at the earliest 
possible time period as mentioned in the agreement.  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1 Agriculture  
Page 89, para 4.9  
Mongolia does not have any import or export tariff -rate quotas on agricultural goods, nor does it 
have any such provisions in its WTO schedule. However, it does control a list of 33 "strategic food 
items", mainly meat, milk, and grains, through quotas and allows imports/exports only through 
licenses issued by the Ministry of Food, Agriculture and Light Industry (MOFALI).  
Question №30:  
During the Committee on Agriculture meetings Mongolia in its answer to the question ID 93072 
stated that wheat flour would  not be subject to quota regime from the time when the Law on Fortified 
Food, 2018 enters into force. As far as the Law was effective since 31 December 2019, could 
Mongolia please clarify when it is going to exclude wheat flour from the list of "strategic food items"?  
Answer:  Wheat flour and liquid milk are one of the main stable food items for Mongolians, therefore 
the foods will not be excluded from the list of strategic food. Mongolia intends not to impose 
restriction on wheat flour in 2021 and no furth er restrictions are planned.  
Question №31:  
During the Committee on Agriculture and Committee on Market Access meetings Mongolia stated 
that no quotas were imposed on wheat flour and liquid milk in 2020. However, as long as wheat 
flour and liquid milk are  presented in the list of «strategic food items» as long quota regime will be 
legislatively imposed. Could Mongolia please provide comprehensive information on this particular 
issue? Will Mongolia impose quota regime on these products in 2021 and further?  
Answer:  Mongolia intends not to impose restrictions on wheat flour and liquid milk in 2021 and no 
further restrictions are planned. Law on Food has been included in the guidelines for improving the 
Mongolian legislation until 2024 and shall be amended in accordance with the WTO rules and 
principles by 2021.  
Question №32:  
What is the rationale for issuing the license on import of wheat flour and liquid milk to the territory 
of Mongolia? What is the duration of these licenses? Were they notified to the WTO?  
Answer:  Mongolia shall not issue a license on import of wheat flour and liquid milk to the territory 
of Mongolia in 2020 and no further issuance of licenses shall be planned. Notifications shall be 
submitted to the WTO accordingly.  
4 TRADE POLICIES BY SE CTOR  
4.4 Services  
4.4.4 Transport  
4.4.4.3 Rail transport  
Pages 133 -135 
Question №33:  
Section 4.4.4.3 on rail transport lacks information on tariff policies applied by Mongolian authorities 
on railway transport. In this regard, could Mongolia please provide the following information:  
− description of applied tariff policies on railway transport and legislation on railway tariffs;  WT/TPR/M/406/Add.1  
 
- 99 - 
 
  Answer:  Since Mongolia is an active member of the Organization for Cooperation between Railways, 
it is in coordination with t he Uniform Transit Tariff for international rail transport. The tariffs are used 
by the contracting parties for the calculation of carriage charges for goods transportation in transit 
traffic with SMGS and CIM/SMGS consignment note. Terms are set out in th e domestic rail transport 
tariff policy, the steering committee of business, which sets out their carriage charges for goods 
transportation obtaining concurrence from the MRTD and Mongolian Authority for Fair Competition 
and Customer.  
− precise description of tariff policies applied to exports of coal and transit of mineral resources 
and containers;  
Answer:  As mentioned above, Mongolia is an active member of the Organization for Cooperation 
between Railways; it uses the Uniform Transit Ta riff for international rail transport.  
− outline of differences between regulation of legal and economic status of UBZD and other 
railway companies in Mongolia;  
Answer:  In Mongolia, there are three railway companies, namely UBZD Mongolian -Russian joint -
stock venture shared by 50:50, "MTZ" 100% state -owned company and "BTEG" 100% private owned 
company, operating as both infrastructure owner and rail manager. All three companies operate 
railway transport under the Railway Transport Law and related regulations applied to the railway 
transport industry.  
− description of economic effects of applied tariff policy on railway transport.  
Answer:  The TH UBTZ is affected by the current tariff policy applied in the Mongolian railway 
industry. The Mongolian Government rule s the UBTZ rail passenger service (which does not cover 
its cost and is subsidized by freight income) and domestic coal transport; because they meet a social 
need. Overall, UBTZ JVC's freight barely covers its allocated costs  
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.4 Transport  
4.4.4.3 Rail transport  
Page 135, para 4.194  
The main carrier, UBTZ, which operates the Trans -Mongolian Railway, is 50% owned by RZD of the 
Russian Federation, 25% by the state -owned Erdenet MGL mining company, and 25% by the 
Mongolian Railway State Owned Shareholding Company (MTZ). The 50/50 split o f ownership 
between the Russian Federation and the Mongolian authorities dates back from the construction of 
the Trans -Mongolian Railway, from 1949 to 1956.  
Question №34:  
Para 4.194 states that 50% of the UBZD stock is owned by RZD of the Russian Federat ion, 25% by 
the state -owned Erdenet MGL mining company, and 25% by the Mongolian Railway State Owned 
Shareholding Company (MTZ). However, the Russian Federation considers this information as 
incorrect. In accordance with the Soviet -Mongolian Agreement on t he UBZD, the ownership splits 
into two equivalent parts between the Governments of the Soviet Union (now Russia) and Mongolia. 
RZD exercises management functions on behalf of the Russian Government in accordance with a 
respective Presidential decree, and i s not remunerated for these functions. The dividends from UBZD 
come to the Federal Budget of the Russian Federation and are managed by the Federal Agency of 
the Railway Transport of Russia. Thus, could Mongolia please check the information on actual 
owners hip and structure of stock and dividends?  
Answer:  The information stated above in the first sentence is not correct. UBTZ, which owns the 
main railway line in Mongolia, is a joint -stock company owned 50% by the Mongolian Government 
and 50% by the Russian Railways joint -stock company (RZD). Senior managem ent positions are 
also divided between two shareholders.   WT/TPR/M/406/Add.1  
 
- 100 - 
 
  THAILAND  
WT/TPR/S/406 Para 4.82 -4.86 Page 109  
1. What are Mongolia's policies to promote energy access for remote or rural area in Mongolia?  
Answer:  The Mongolian energy system divided into four ener gy systems and all customers, besides 
the 8 soum centers, are connected to the internal energy systems which are importing from 
neighboring countries. The state policy on energy has been approved by the parliament in 2015 and 
indicates that Elevating a rel iable, uninterruptable operation of electricity and heat transmission as 
well as distribution networks, improving the quality of energy supply to consumers. The Herder 
households are using mobile solar panels to supply the self -electricity of 100% in nomad ic life.  
2. What are measures on "Cross -border Electricity Trade" with neighbo uring countries?  
Answer:  Mongolia imports energy from the neighbo uring countries based on the power purchase 
agreement which is 15% from China and 5% from the Russian Federation of the total energy 
demand.  
3. What could be the most effective policy to enhance the development of power 
interconnection infrastructure and energy trading?  
Answer:  The Parliament has approved the State policy on energy in 2015 and it includes the 
objective to collaborate with regional countries to implement the Gobitek -Asia Integrated Network 
Initiative to export electricity generated from renewable energy to Northe ast Asian countries based 
on Mongolia's abundant solar and wind resources in the Gobi region.  
WT/TPR/S/406 Para 4.81 Page 108  
What are Mongolia's policies to attract Foreign Direct Investment?  
Answer:  Based on the assessment of the implementation of the I nvestment Law and the research 
study on international investment policy and legal acts, National Development Agency is working to 
create a more favorable legal environment for investors by amending the existing investment law.  
The Government of Mongolia h as also announced to reform the investment climate and establish a 
Foreign Investment Promotion Council under the Prime Minister of Mongolia. In addition, a working 
group chaired by the Deputy Chairperson of the Cabinet Secretariat has been established to 
implement a comprehensive Investment Climate Reform in Mongolia. In the framework of the 
objective of the Government of Mongolia in attracting and promoting foreign investment in the 
agricultural sector in 2021, the National Development Agency is working o n the draft of the Action 
Plan for attracting and promoting foreign investment in the agricultural sector, which is planned to 
be approved by the Chairman of the National Development Agency in the first quarter of 2021. Under 
the draft of the Action plan, there are activities to organize events to promote investment seeking 
projects in the agricultural sector, to create a project database, and to organize training and events 
to build the capacity of local businesses interested in attracting foreign investme nt in the agricultural 
sector.  
WT/TPR/S/406 Para 4.63 -4.64 Page 106  
What is Mongolia's renewable energy policy to achieve 30% by 2030?  
Answer:  According to the State policy on energy , which was approved in 2015, renewable energy 
will set to reach up to 30%  in 2030. The law of renewable energy had an amendment to implement 
the auction based on the technology and low price for the flexible energy system from the solar and 
wind resources. The Renewable Energy Law has been amended to introduce low -cost solar an d 
advanced wind technologies.  
WT/TPR/S/406 Para 4.16,4.17 Page 93 -95 
1. Could Mongolia provide more information on agricultural subsidies and price support programmes 
such as a condition for farmers to be eligible to participate in the support programmes, criteria and 
limitations of loans or subsidy funding provided in the programmes?  WT/TPR/M/406/Add.1  
 
- 101 - 
 
  2. Do these programmes comply with article 6 of the WTO Agreement on Agriculture?  
Answer:  The Government is pursuing a policy to promote the country's sustainable economic gr owth 
through creating a favo urable and stable environment for the non -mining sector, including 
agriculture and going forward to reduce utilization of subsidies and support. In this regard, the 
Government of Mongolia approved the Safeguard Regulation on 27th of January 2021 in compliance 
with the WTO rules and procedures. Mongolia is also planning to develop legislation concerning anti -
dumping measures to protect its agriculture sector.  
WT/TPR/S/406 Para 33 Page 12  
Are foreign workers and/or Mongolian worki ngs for foreign companies in the country eligible for 
these support measures provided by the government during the COVID -19 pandemic?  
Answer:  Support measures, such as creating exemptions from social insurance contributions and 
income tax and distributing relief funds to employees of affected businesses cover those workers 
registered in the Mongolian social insurance system.  
WT/TPR/S/406 Para 3.76 Page 65  
Are foreign Small and Medium Enterprises (SMEs) eligible for the support and special privileges 
under the National Program to Support Small and Medium Enterprises? If it is the case, what are 
the benefits and support available and what are the criteria and conditions for applying to the 
program?  
Answer:  The criteria for the participation in the program highlights micro, small and medium 
enterprises and service providers in accordance with The Law on Promotion of Small, Medium 
Enterprises and Services. The Government of Mongolia has passed decree No. 113 i n 2020 which 
funds the concessional loans, selection process, transfer loans, and repayments from the Small and 
Medium Enterprise Development Fund.  
WT/TPR/S/406 Para 3.18 Page 38  
As mentioned in paragraph 3.18 page 38 that Mongolia's Customs used Transact ion Valued Method 
approximately 84 percentage of the total number of import declarations, while use of other 
methodologies about 16 percentage. Could Mongolia explain Computed Value Method as of following:  
1. How much of percentage in using Computed Value Me thod?  
Answer:  Mongolian Customs did not use the computed value method in customs valuation.  
2. How does Mongolia Customs apply the Computed Value Method, and please provide 
example?  
Answer:  N/A. Mongolia does have any specific cases.  
WT/TPR/G/406 Para 3.47 Page 15  
1. Does Mongolia ha ve any limitations on healthcare insurance provided by foreign company?  
Answer:  A company with foreign investment has the right to engage in voluntary and additional 
health insurance activities on the basis of  a license.  The Law on Insurance, the Law on Business 
Licensing, and the rules and regulations approved by the Financial Regulatory Commission do not 
contain specific prohibitions and restrictions on foreign -invested companies engaged in voluntary 
health i nsurance.  
Does the healthcare insurance in Mongolia cover the overseas medical expenses?  
Answer : Mongolian health insurance does  not cover the overseas medical expenses.  
 
 WT/TPR/M/406/Add.1  
 
- 102 - 
 
  WT/TPR/G/406 Para 2.36 Page 9 Para 2.41 Page 10  
As Mongolia stated that she amended  the Law on Investment in 2016 along with the development 
of a "Roadmap for Trade and Investment in Mongolia", could Mongolia provide further information 
on such law especially on the parts that were amended/revised and the implications for foreign 
investo rs? Moreover, what are the incentives given to the investors investing in the priority sectors 
according to the Roadmap?  
Answer:  In 2016, four technical provisions were amended in the Investment Law. Based on the 
assessment of the implementation of the Inv estment Law and the research study on international 
investment policy and legal acts, National Development Agency is working to create a more favorable 
legal environment by amending the existing investment law.  
WT/TPR/S/406 Para 20 Page 10  
The Mongolian g overnment considers foreign direct investment (FDI) an important contributor to 
the economic development of the country and has adopted several measures with an aim to create 
favourable legal environmental and legal stability that would attribute to restor ing investors' 
confidence. However, some companies have still been nationalized in recent years. Thus, apart from 
the commitments in bilateral investment treaties, could Mongolia provide the rationale and relevant 
legal framework or mechanism for nationali zation of companies, if any, to ensure that the right of 
an investor is protected and the possibility to minimize the number of nationalization in the future?  
Answer:  Investors in Mongolia are protected by national legislation in terms of the external lega l 
environment for foreign investment and guaranteed by international treaties, agreements and 
conventions as well.  
Mongolia has acceded to the Washington Convention on the Settlement of Investment Disputes and 
the Seoul Convention on the Establishment of a  Multilateral Investment Insurance Agency.  
Mongolia has also signed Investment Promotion and Reciprocal Protection Agreements with 43 
countries and Double Taxation Agreements with 25 countries.  
The Government of Mongolia are supportive of investors who hav e made real investments and 
operate within the framework of Mongolian laws and international agreements. However, companies 
that violate the law and engage in illegal activities are being prosecuted in accordance with the law.  
In addition, the National Development Agency and the World Bank Group's International Finance 
Corporation have jointly launched the SIRM, which is the Systematic Investor Response Mechanism.  
The system will resolve investors' grievances in an open and transparent manner wi th the 
multilateral participation of government agencies, and will provide a unified database of issues facing 
investors. This database will provide an opportunity to analyze the current statement of the business 
and investment environment of Mongolia and its regulation, and will be the basis for further policy 
changes.  
WT/TPR/S/406 Para 3.88 Page 68  
Thailand encourages Mongolia to allow at least 60 days for other Members to make comments on 
proposed or amended technical regulations and conformity assessmen t procedures which may have 
a significant effect on trade of other Members to be in conformity with TBT Agreement under WTO.  
  WT/TPR/M/406/Add.1  
 
- 103 - 
 
  TURKEY  
THE SECRETARIAT REPORT  
Summary, pg. 8, 2.  
It is stated in the Secretariat Report that " The COVID -19 pandemic gave rise to urgent budget and 
balance -of-payments needs. In response, Mongolia adopted a relief package on 9 April 2020 to 
provide support for those affected by the economic downturn. The fiscal measures taken by the 
Government are e stimated to be around 8.9% of GDP. On the monetary policy front, the Bank of 
Mongolia (central bank) purchased bonds to help finance a debt -relief scheme for the elderly, 
resumed the purchase of mortgage -backed securities, and provided zero -interest -rate s hort-term 
loans to banks."  
Question:  Could Mongolia explain the impact of government measures on macroeconomic 
parameters such as fiscal deficit and central government debt?  
Answer:  According to the preliminary results of consolidated budget for the fiscal year 2020,  
Mongolia 's total budget  balance is in deficit of 3.6 trillion MNT and an equilibrated balance was in 
deficit of 4.5 trillion MNT. In 2020, total budget revenue decreased by 13.6 percent (1.6 trillion MNT) 
from the previous year and reached 10.4 trillion MNT. This was mainly due to the slowdown in 
economic activity caused by the COVID -19 epidemic and the implementation of measures taken by 
the government to support citizens and businesses, such as taxes, social security and exemptions 
from fines and penalties imposed on them. Gove rnment debt at current values was 55.6 percent of 
GDP at the end of 2019, and reached to 64.3 percent, increasing by 8.6 percentage points in 2020. 
This was mainly due to an increase of about 4.4 trillion MNT in government external debt from the 
previous y ear. 
2. Trade and Investment Regimes, 2.3. Trade Agreements and Arrangements, 2.3.2. 
Regional and preferential agreements, pg. 29, 2.31.  
it is stated in the Secretariat Report that " The EPA between Japan and Mongolia entered into force 
on 7 June 2016, and was the first FTA entered into by Mongolia. The Agreement is comprehensive, 
and includes major sections on trade in goods, services, and investment. It also has provisions on 
e-commerce, competition, government procurement, improving the business climate, and dispute 
settlement. It is gradually being implemented, with the final implementation (last tariff reduction) 
to take place on 1 April 2036. It was notified to the WTO in 2016, pursuant to Article XXIV:7(a) of 
GATT 1994 and Article V:7(a) of GATS. Since  the agreement's entry into force, imports into Mongolia 
from Japan have increased steadily, while exports from Mongolia to Japan have fluctuated and have 
not demonstrated any particular trend. "  
Question: Could Mongolia elaborate on its investment relations with Japan following the entry into 
force of the EPA between Mongolia and Japan?  
Answer:  Since the Mongolia -Japan Economic Partnership Agreement has entered into force in 7 
June 2016, the foreign direc t investment from Japan to Mongolia increased by 596.4 million USD. 
However, in 2020, due to COVID -19 pandemic, the foreign direct investment from Japan to Mongolia 
fell by 63% from 2019. See table below.  
 7.121.434.213.3132.3
61.394.2 91.8243.7
121.7
45
050100150200250300
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020/IIWT/TPR/M/406/Add.1  
 
- 104 - 
 
  THE GOVERNMENT REPORT  
3. Developments in Mongolia' s Main Economic Sectors, 3.7. Construction and Urban 
Development, pg. 13, 3.37.  
It is stated in the Government Report that "The Government adopted in 2019 a document "State 
Policy on Construction Sector for 2019 -2029" with an aim of creating more favorable environment 
for the population to live in healthy and safe conditions through intensified development of the 
construction sector in line with the trends of regional and urban development and the needs and 
requirements of large development projects and programs."  
Question:  Could Mongolia share further information about these projects and programs?  
Answer:  the following are th e projects and programs with information.  
1 "Solongo -1, 2" apartment district project to be implemented by the Export -Import Bank with a soft 
loan of USD 264.9 million and 122.4 from the Government of the Republic of Korea; / 2020 -2025 /  
2 "Darkhan Wastewater Management Improvement Project" implemented by ADB with a soft loan of 
USD 20.8 million  
3 "Southeast Gobi Urban Development and Border Settlement Development Project" -1 (MON: L3388) / 
Arkhangai, Uvurkhangai, Umnugovi, Dornogovi /2017 -2020 / implemented with ADB loan of 21.2 
million USD  
4  "Southeast Gobi Urban Development and Border Settlements  
Development Project " -2 (MON: 3713, G: 9206) /Khuvsgul, Khentii, Bulgan, Dundgovi, Sukhbaatar/ 
ADB's 20.0 million USD loan  
5 Dry Waste Recycl ing Project / Darkhan -Uul, Gobi -Altai / to be implemented with ADB grant 2.0 
million USD  
6 Green Building Planning Project implemented with ADB technical assistance of 540.0 thousand USD  
7 "1008 Apartment District Project around Green Lake" to be impleme nted with a grant of 350.0 million 
yuan from the Government of the People's Republic of China 2020 -2022 
8 "Ulaanbaatar Central Wastewater Treatment Plant Construction Project" / 2019 -2022 / implemented 
with a loan of USD 262.7 million from Exim Bank of China  
9 "Taishir -Altai water supply project" implemented by the Government of the Republic of Austria with a 
loan of 14.0 million euros / 2018 -2020 /  
10 "Infrastructure Development -Bayanzurkh, Darkhan and Selenge  Project" implemented by the 
Government of the Republic of AS with a loan of 7.0 million Euros / 2019 -2020 /  
11 "Infrastructure Development -Songinokhairkhan Project" / 2019 -2020 / implemented with a loan of 
5.0 million Euros from the Government of the Rep ublic of Austria  
12 "Development and approval of the General Project for Population and Settlement Development of 
Mongolia" project implemented by the Government of Japan with technical assistance assistance of 
1.5 million USD / 2019 -2021 /  
13 "Occupatio nal Safety Capacity Building Project in the Construction Sector" implemented by the 
Technical Assistance of the Government of Japan (JICA) / Cost Technical Assistance /  
14 "Erdenet city waste water treatment plant expansion project" has been implemented u nder the loan 
of 9.5 mln euros from the Government of France. /2015 -2020/  
3. Developments in Mongolia's Main Economic Sectors, 3.5. Communications, pg. 12, 3.21.  
It is stated in the Government Report that " Within the goal of establishing favourable conditions for 
the ICT sector through optimization of its legal environment and organization, the SGH enacted 
amendments and revisions to the Laws on Communications, Postal Services and Radio Spectrum. 
Also, a new  Broadcasting Law was adopted by the Parliament on 12 December 2019. A draft Law on 
Data Protection has been developed and tabled before the Government for approval. A National 
Program on Digital Governance was approved. A National Program on Digital Conte nt is being worked 
out." 
Question:  Could Mongolia further explain the context of "National Program on Digital Governance" 
and "National Program on Digital Content"? Do these programs contain provisions on e -commerce 
and digital taxation?  
Answer:  These prog rams do not contain provisions on e -commerce and digital taxation. The 
National Program on Digital Governance aims to improve the efficiency and effectiveness of public 
organizations and to support innovation in public administration. The objectives of the  "National 
Program on Digital Governance"  are following:  WT/TPR/M/406/Add.1  
 
- 105 - 
 
  4.1.1. enhance public awareness of digital literacy;  
4.1.2. create legal environment of e -governance;  
4.1.3. foster e -governance development structure and develop hard and soft infrastructure and e -
services with integrated policy planning;  
4.1.4. to ensure safety, integrity and security of government database and plan single source 
information and open dat a policy;  
4.1.5. to promote engagement and operations of national producers and service providers to deliver 
government e -services to citizens;  
4.1.6. to develop e -participation, increase public participation in decision making process of the 
government an d ensure its transparency;  
4.1.7. to establish information technology auditing system;  
4.1.8. to ensure appropriate and ethical use of ICT by public organizations and officials at all levels;  
4.1.9. to increase productivity and efficiency through adopting information technology 
advancements and innovation into socio -economic sectors;  
Source: https://www.legalinfo.mn/annex/details/9503?lawid=14177 . 
  WT/TPR/M/406/Add.1  
 
- 106 - 
 
  UNITED KINGDOM  
WT/TPR/S/406 – Secretariat's Report  
2. TRADE AND INVESTMENT REGIMES  
2.4. Investment regime  
UK Questions : 
The Secretariat's Report mentions that the Government of Mongolia considers foreign direct 
investment ("FDI") to be an important contributor to the eco nomic development and macroeconomic 
stability of the country. However, as the Report notes, FDI remains highly concentrated in one sector, 
that is mining. Based on the Report, the Investment Law has provisions for more equal treatment 
between domestic and foreign investors, a point that improved on the previous law, although a 
minimum threshold of USD 100,000, or the tugrik equivalent, remains for foreign investors retaining 
more than a 25% share (Table 2.5).  
• Could Mongolia provide details of the draft Inv estment Policy Statement of the Government, 
indicate whether the Government consulted with the private sector and specify what current 
or planned actions it is taking to eliminate investment barriers?  
• Is Mongolia considering eliminating the minimum thresho ld of USD 100,000 requirement for 
investors in non -mining sectors?  
• What process is in place to simplify the issuing of special licenses to attract investors, 
especially in non -mining sectors?  
Answer:  Based on the assessment of the implementation of the Inv estment Law and the research 
of international investment policy, the National Development Agency (NDA) is working to create a 
more favorable legal environment by amending the Investment law. In the framework of this work, 
research is now under  way and it w ill change the investment threshold and size.  
After having draft law approved by the by the State Great Khural (Parliament), the draft "Investment 
Policy Statement" will be discussed at the Cabinet meeting. The draft of Investment Policy Statement 
was disc ussed during the meeting of the Public -Private Consultative Committee held on January 28, 
2020 and relevant recommendations were reflected in the draft. The draft Investment Policy 
Statement will soon be posted on the NDA's official website in order to rec eive feedback from 
investors and public.  
With the approval of the draft law, a number of state licenses, steps and procedures for obtaining 
licenses will be reduced through establishing a business -friendly legal environment.  
In addition, Mongolia aims to provide e -government services to foreign investors within the 
framework of the main goal of "providing public services promptly, without delays, and in an open 
and transparent manner."  
WT/TPR/S/406 – Secretariat's Report  
3 TRADE POLICIES AND PRACTICES BY M EASURE  
3.3 Measures Affecting Production and Trade  
3.3.2. Standards and other technical requirements  
UK Question :  
The Secretariat Report at paragraph 3.83 states that Mongolia plans to further promote 
standardization, metrology, conformity assessment, and sampling control policies to ensure national, 
social, and economic security; increase exports; and support the dev elopment of national industries, 
including increasing the number of national standards that are aligned with international standards 
as part of its standardisation policy. The UK welcomes Mongolia's positive approach of using 
international standards over n ational standards. This will align requirements which will benefit UK 
trade. However, we note the reference in the Report to mandatory, third -party verification for WT/TPR/M/406/Add.1  
 
- 107 - 
 
  regulatory compliance, whi ch could impose significant costs upon SME importers, especially 
importers of premium brand beverages.  
• Is Mongolia considering the use of self -declaration for any products?  
Answer:  The article 4.1.8 of the revised law on "Standardization, technical regulation and 
accreditation of conformity assessment " states that  "Supplier's Declaration of Conformity is the 
assurance by a first party or supplier that the product of conformity fulfils specified requirements". 
Registration of supplier's declaration of conformity applies to both domestic and imported products. 
The notification about this procedure has been notified to the WTO (G/TBT/N/MNG/11.).  
WT/TPR/S/406 – Secretariat's Report  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.2. Standards and other technical requirements  
UK Questions : 
The Secretariat's Report at paragraph 3.88 states that an Order of the Minister of Industry approved 
and enforced technical regulations on imported alcohol beverages and requires " traders that import 
alcoholic beverages to fully meet the spec ifications that include Mongolian technical regulations for 
certain beverages, permissible levels of alcohol content, acidity/alkalinity measures, physiochemical 
characteristics, bacteriological indicators, alcohol safety levels of heavy metals, and packag ing, 
transport, and labelling requirements ".  
• Could Mongolia inform WTO Members of when it plans to notify the WTO's relevant 
Committee of this Order?  
• Could you elaborate on the content of those technical regulations?  
Answer:  The technical regulation is applicable to both imported and domestically produced 
beverages. The Ministry of Food, Agriculture and Light Industry is working to revise the existing 
technical regulation on imported alcohol beverages in order to meet the WTO  TBT Agreement 
principles. The draft regulation will be notified to WTO accordingly.  
Paragraph 3.89 states that alcoholic beverages must have undergone an approved conformity 
assessment before they can be imported into Mongolia.  
• What assessment has been ma de by Mongolia to ensure that the measures stated under 
paragraphs 3.88 and 3.89 of the Secretariat's Report align with international standards, and 
what current or planned actions are in place to ensure that these measures would not cause 
an unnecessary b arrier to international trade?  
Answer:  The draft Law on combating alcohol abuse and controlling the circulation of alcoholic 
beverages contains provisions related to license of production alcoholic beverages, requirements for 
alcoholic beverages productio n plants, packaging and labelling requirements, export and import of 
alcoholic beverages, licenses for selling and serving alcoholic beverages, consumption of alcoholic 
beverages, combatting alcohol abuse, public campaigns against alcohol abuse, controllin g 
production, import, export, domestic trade, services and consumption, taxes, fees, excise stamps. 
There were many comments from producers and importers of alcoholic beverages thus currently the 
Ministry of Justice is working on amending the draft law to bring it in line with the internal rules.  
• Furthermore, could we obtain further clarification about what the requisite conformity 
assessment for alcoholic beverage entails?  
Answer:  
- Official letter of the business entity - application / according to the fo rm 2 /  
- A copy of the state registration certificate of the business entity  
- Purchase and sale agreement  WT/TPR/M/406/Add.1  
 
- 108 - 
 
  - Declaration of product quantity and price  
- Accredited laboratory test results of the product  
- License issued by a professional organization /required only if necessary/  
- Certificate issued by the competent authority of the exporting country  
- Receipt of payment for service  
WT/TPR/S/406 – Secretariat's Report  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3. Sanitary and phytosanitary requirements  
3.3.3.2. Framework  
UK Question : 
The Secretariat's Report mentions that the Food Law requires that at least two thirds of the shelf life 
of imported food remains valid. The UK understands that there are no internation al standards or 
guidelines around shelf life though some countries do set criteria based around practical issues such 
as clearance process and the length of the distribution chain. There are no specific requirements 
regarding minimum shelf life for foods p laced on the UK market, where: if the food is safe, the food 
can be imported and if the food is unsafe, then appropriate enforcement action can be taken at the 
port or at the retail level (a specific requirement applies to eggs). The UK is concerned that t his law 
could discourage international food suppliers from exporting to the Mongolian market, as it limits 
the varieties of food that can be exported to Mongolia.  
• Do the Mongolian authorities believe that this requirement provides an appropriate level of 
consumer protection? If so, what is the scientific basis for such belief?  
Answer: Mongolia imports more than 70 percent of its total food products. Imports of perishable, 
expiring and cheaper food products have been increased. Some foodstuffs take 2 -3 month s to 
transport into Mongolia, and the Generalized Agency for Specialized Inspections have determined 
that 28 percent of total foodstuffs sold in the domestic market have been run out the expiry dates. 
Therefore, Article 11.2.3 of the Food Law is being legi slated and implemented.  
WT/TPR/S/406 – Secretariat's Report  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6 Government procurement  
UK Question : 
The Secretariat's Report states that Mongolia is not a signatory to the WTO Plurilateral Agreement 
on Government Procurement ("GPA") and that it plans to conduct an internal survey on whether to 
join the GPA. The UK recognises that Mongolia has been an obs erver at the WTO Committee on 
Government Procurement for several years. The UK encourages WTO Members not yet parties to 
the GPA to consider accession to the Agreement in order to support best practices in the field of 
public procurement.  
• When does Mongoli a plan to conduct its internal survey on whether to join the GPA and could 
Mongolia set out its plans?  
Answer:  The initial step is to conduct a comprehensive study on provisions of the GPA, its 
compliance with the domestic law and policy of the GPA, poten tial risks and effects after acceding 
to the GPA towards the domestic economy, suitable measures to mitigate negative impacts, etc. The 
subject matter is in the early stage of internal discussion of the cabinet. Accordingly, the date for 
the internal surve y on whether to join the GPA has not been determined yet.  WT/TPR/M/406/Add.1  
 
- 109 - 
 
  WT/TPR/G/406 – Government of Mongolia's Report  
4 CURRENT GOALS OF MONGOLIA'S TRADE AND ECONOMIC COOPERATION  
Goals of the Government: 4.1 Bullet point 2: "…to prevent and protect citizens from illegal 
and counterfeit products".  
UK Question : 
The Government of Mongolia's Report states that its goal is to prevent and protect citizens from 
illegal and counterfeit pr oducts. The UK has heard from businesses that counterfeit products (e.g. 
alcoholic beverages, spare parts for automotive engines, washing powder) are being increasingly 
imported into Mongolia. This pattern raises public health and safety risks and can caus e reputational 
damage to producers and importers of genuine products. The UK commends Mongolia's goal to 
prevent and protect citizens from illegal and counterfeit products.  
• What measures does Mongolia have in place to prevent and protect illegal and count erfeit 
products and encourage collaboration with different government agencies and ministries and 
as well as with the private sector to tackle this issue?  
Answer:  According to the article 12.1.10 of the Competition Law, business entities shall be 
prohibite d from using commercial methods that are illegal and unlawfully harm the consumers. For 
example, the Authority for Fair Competition and Consumer Protection has taken into account the 
issue of imported repaired automobile spare parts which were sold as new parts in the domestic 
market. As a result of the cooperation with the other government agencies, consumers are now 
allowed to monitor the importing process of the automobiles transparently through online 
(www.autobox.mn ). 
  WT/TPR/M/406/Add.1  
 
- 110 - 
 
  FOLLOW UP QUESTIONS FROM THE UNITED KINGDOM  
WT/TPR/S/406 – Secretariat’s Report  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
Paragraph 3.75 of the Secretariat’s Report states tha t the Government of Mongolia, because of the 
pandemic and of border restrictions, adopted a regulation under the Law on Disaster Protection that 
enables the granting of supporting measures towards the cashmere industry, including  the reduction 
of interest rates on new loans and the provision of special loans for cashmere production.  
UK Questions:  
 
• How long are these support measures to the cashmere industry meant to last?  
Answer:  Government approved a Resolution No.101 on 19 March 2020 to support “Some measures 
to be implemented in the cashmere sector” and the measures lasted until the end of 2020.  
 
• Are these support measures available to all cashmere producers without distinction ?  
Answer:  These measures were available to all cashmere producers without distinction.  
 
• What are the criteria for cashmere producers to benefit from these support measures?  
Answer:  All individuals and enterprises in cashmere sector, meeting the criteria set by the 
commercials banks, were entitled to benefit from the s upporting measures towards the cashmere 
industry, including the reduction of interest rates on new loans and the prov ision of special loans for 
cashmere production . 
  WT/TPR/M/406/Add.1  
 
- 111 - 
 
  UNITED STATES  
Questions based on the Secretariat Report (WT/TPR/S/406)  
1 ECONOMIC ENVIRONMENT  
1.1 Recent Economic Developments  
Page 13, paragraph 1.5:  According to the Secretariat Report, Mongolia implemented the following 
actions to sustain the economy in relation to COVID -19: (i) it discussed with the Government of 
China and implemented the Green Gate temporary measure to increase mineral exports; (ii ) it 
increased social welfare, including child allowance, from MNT 20,000 to MNT 100,000; and (iii) to 
support enterprises, it delayed social security insurance and personal income tax payment. Were 
government tax exemptions, as part of COVID -19-related ec onomic relief, extended to foreign  
companies in equal measure as to domestic ones? If not, please explain the differences.  
2 TRADE AND INVESTMENT REGIMES  
2.2.1 Trade -related law  
Page 26, Table 2.2: In Table 2.2 the Law on Trade Marks and Geographical Indic ations is listed as 
having been last amended in 2015.  
1. Where can a public copy of these amendments be found?  
Answer:  The legislation can be found both in English and Mongolian on the Mongolian legal portal 
https://www.legalinfo.mn/law/details/15971?lawid=15971 . 
2.4 Investment Regime  
Page 30, paragraph 2.36:  The Secretariat Report states that Mongolia is working on a draft 
investment policy statement that, among other things, aims to reduc e investment barriers.  
2. When does Mongolia plan to finalize and issue the Investment Policy Statement?  
Answer:  Based on the assessment of the implementation of the Investment Law and the research 
study on international investment policy and legal acts, National Development Agency is working to 
create a more favorable legal environment for investors by amending the  existing investment law.  
After an approval of the draft law by the State Great Khural (the Parliament), the "Investment Policy 
Statement" will be discussed at the Cabinet meeting.  
National Development Agency is working on a draft of Investment Policy Statement and the draft 
was d iscussed and relevant recommendations were reflected at the meeting of the Public -Private 
Consultative Committee on January 28, 2020.  
In addition, a working group chaired by the Deputy Chairperson of the Cabinet Secretariat has been 
established to impleme nt a comprehensive Investment Climate Reform in Mongolia.  
3. Which investment barriers does Mongolia plan to address in the Investment Policy 
Statement? Please explain.  
Answer:  As of now, it is not possible to provide detailed information on the "Investment P olicy 
Statement" since the project is now underway. The Government of Mongolia will approve it by openly 
discussing the views and recommendations with foreign investors. The Government of Mongolia will 
hold public hearings with foreign investors to discuss  and approve the "proposed amendments to 
the Investment Law" and "Investment Policy Statement" accordingly.  WT/TPR/M/406/Add.1  
 
- 112 - 
 
  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
Page 35, par agraphs 3.1 and 3.3:  The Secretariat Report states, "[c]ustoms import procedures 
are governed by two main laws: the Customs Law, 2008, which provides the overall framework; and 
the Law on Customs Tariffs and Customs Taxes, 2008, which covers the customs ta riff, customs 
valuation, rules of origin, and the payment and collection of customs duties. Both of these Laws 
underwent many amendments during the review period. In 2017, a new draft Customs Law was 
proposed, but as at October 2020, it had not yet been ap proved. The main reason for replacing the 
existing Law is to align it with other newly revised laws." The report also describes the risk 
management system adopted by Mongolia in 2008, stating that "Mongolia established a risk 
management system on imports w ith three categories: (i) simplified examination (category 
"Green"); (ii) document examination (category "Orange"); and (iii) physical inspection (category 
"Red")."  
4. What is the tentative timeline for passing the draft Customs Law?  
Answer:  A new draft Cust oms Law of Mongolia is expected to be approved in 2022. The Customs 
General Administration of Mongolia has established a working group, which is currently in the process 
of drafting a law in line with the international conventions, treaties and other agree ments which 
Mongolia has acceded. A new draft Customs Law will mainly focus on the transparent and efficient 
regulatory framework for the international trade movement. However, there is a lack of knowledge 
and expertise in developing a regulatory framework  governing its imports from third countries.  
5. Will the new customs law change the importation process, especially the risk 
management system that currently exists to help prevent intellectual property 
infringement? If so, please explain how it will change t he importation process.  
Answer:  The Article 269.1.9. of the Customs Law of Mongolia states "The Mongolian Customs shall 
protect intellectual property rights as specified in this Law". Although, preventing intellectual 
property infringement measures are inc luded in the "Risk based customs control" part, this issue 
still needs to be further studied and developed. There is no specific importation process tailored to 
intellectual property right protection, but overall export, import and transit procedures are f ocused 
on simplifying, harmonizing and standardizing customs clearance, in line with the Revised Kyoto 
Convention and other related international documents.  
6. Please explain how imports are assigned to a certain risk management category.  
Answer:  Based on the  Risk management regulation and related provisions of law, high risk goods 
are targeted with the previously developed risk profile, which is uploaded to the Customs Automated 
Information System (Customs clearance system: Risk module).  
Page 36, paragraph 3.6: The Secretariat Report states, "Chapter 5 of the Customs Law provides 
for appeal of a customs decision. A complaint by an importer is first filed with the Head of the 
Customs within 30 days of receiving the decision. Thereafter, it may be raised to a higher level in 
Mongolian Customs and, lastly, with the courts – either the civil or administrative court depending 
on the case. In 2019, there were 43 appeals to Mongolian Customs, and 19 to courts."  
7. Does the head of the Customs Authori ty automatically grant appeals?  
Answer:  The head of the Customs Authority does not automatically grant appeals. According to the 
current Customs Law of Mongolia, the appeal mechanism is regulated as follows:  
"The Article 17. Rules on Making Complaints an d Timeframe  
17.1. A declarant shall make a complaint as follows:  
17.1.1. An appeal against a decision of a state customs inspector shall be submitted to 
the head or manager of the respective customs authority;  WT/TPR/M/406/Add.1  
 
- 113 - 
 
  17.1.2. Аn appeal against a decision of the director or chief of the Customs shall be 
submitted to the relevant  higher level organization or official;  
17.1.3. An appeal against the decision of the higher -level organization or official who 
reviewed and resolved the complaint, shall be submitted to the court;"  
8. If appeals can be denied, what circumstances allow denia l?  
Answer:  If appeals are denied, then the relevant national legislation on the appeal mechanism 
related to the public service decision shall apply.  
Article 17.1.3 of the Customs Law of Mongolia states that "an appeal against the decision of the 
higher -level organization or official who reviewed and resolved the complaint, shall be submitted to 
the court".  
9. If a party has previously been cited for IP infringement, is the violation considered during 
the appeals process?  
Answer:  Once a complaint filed by an importer to the Customs, Customs Office will transfer the 
complaint or the case to the IPOM for further inspection. Inspectors shall inspect the case and make 
a decision. Appealing to court will remain open to an importer. In accordance with Article 6.6 of the 
Criminal Code of Mongolia, if a party has been committed to the crime intentionally more than one 
time, it shall be a ground for aggravation condition.  
3.1.1.2 Customs valuation  
Page 38, paragraph 3.13: According to t he Secretariat Report, "rules for customs valuation are 
contained in Chapter 4 of the Law on Customs Tariffs and Customs Taxes, 2008, and the rules did 
not undergo any significant modification during the review period."  
10. Will Mongolia notify its customs val uation legislation and replies to the Checklist of Issues 
to the WTO Committee on Customs Valuation before the Spring 2021 meeting?  
Answer:  The Customs tariff and Customs Tax Law has not been revised since 2008. The chapter 4 
of this Customs tariff and Cus toms Tax Law determines the rules of customs valuation. T he latest 
version of the Customs tariff and Customs Tax Law and Customs law will  be notified to the WTO 
Committee on Customs Valuation within March 2021.  
3.1.4 Other charges affecting imports  
Page 50 , paragraph 3.41: For the purposes of calculating the corporate income tax, domestic 
firms are taxed on their net income while foreign firms are taxed on their gross income.  
11. Please explain the reason for this discrepancy.  
Answer:  While domestic companies  file tax return which enables the Tax authority to confirm the 
tax deductibles for net income, the foreign companies do not have means to file for a tax return. 
Therefore, the withholding tax applies for foreign companies which are resident of other juris dictions 
for tax purposes. On the other hand, business incomes of companies that are residents of countries 
that Mongolia has concluded a Double tax treaty are exempt from taxation in Mongolia according to 
Article 7 of tax treaties. This is a common tax pr actice for many countries.  However, it is possible to 
carry out business operations through establishing Permanent Establishments (PE or Branch). PEs 
can file for tax returns and can be taxed on net income.  
3.1.6 Anti -dumping, countervailing, and safeguard  measures  
Page 59, paragraph 3.57: The Secretariat Report notes that Mongolia has established a working 
group to develop safeguard regulations in compliance with the WTO Agreement on Safeguards.  
12. Please provide any projected timeline for the development, notification, and 
implementation of such safeguard regulations.  WT/TPR/M/406/Add.1  
 
- 114 - 
 
  Answer:  The working group has developed a draft safeguard regulation which resulted in its 
adoption by the Government on January 27, 2021. Currently, the Cabinet Secretariat is about to 
issue a Letter of Officialization of the regulation. Upon receiving the Letter , the Ministry of Foreign 
Affairs, will translate the regulation and notify members in accordance with the obligations under 
Article 12.6 of the Agreement on Safeguards to notify laws, regulations and administrative 
procedures to the Committee on Safeguard s. 
3.3.2 Standards and other technical requirements  
Page 66, paragraph 3.82: The Secretariat Report briefly discusses the goals of Mongolia's National 
Quality Program.  
13. Please clarify which goals of the National Quality Program were implemented and which 
were not completed.  
Answer: Mongolia's National Quality Program was designed to support and improve legal 
environment of standards, technical regulations and conformity assessment procedures related to 
the non -mining sector to be complied with the WTO TBT Ag reement. As a result, the revised " Law 
on standardization, technical regulation and accreditation of conformity assessment " was approved 
by the Parliament in 2017. In addition, as part of legal reform, National Accreditation Authority has 
been functioning separately.  
14. Which goals were added to the Government Action Plan 2020 -2024?  
Answer: Within National Quality Program implementation, the appropriate measures are included 
into Government Action Plan 2020 -2024 as follows:  
• To support consumer food products in particular to increase meat exports;  
• To increase the productivity of meat, wool, cashmere and leather processing industry by 
supporting the processing industry of livestock products;  
• To establish an environmentally fri endly complex for processing livestock and livestock raw 
materials and increase exports of agricultural products.  
3.3.2.1 Framework  
Page 69, paragraph 3.93:  According to the Secretariat Report, the Mongolian Agency for 
Standardization and Metrology (MASM)  specifies the procedures for issuing and registering a 
supplier's declarations of conformity, which is one way to comply if a product is subject to mandatory 
conformity assessment, and how to request registration of a supplier's declaration. It also requi res 
that, among other criteria, a supplier's declaration be issued by a legal entity registered in Mongolia, 
and that registration is performed by an accredited certification body. Other provisions specify 
maximum time limits, grounds for refusing to regis ter, and procedures for monitoring products with 
a supplier's declaration.  
15. Please confirm that the procedures for issuing and registering a supplier's declaration 
of conformity applies to both imports and domestic products.  
Answer: Registration of supplie r's declaration of conformity applies to both domestic and imported 
products. The notification about this procedure has been notified to the WTO under 
G/TBT/N/MNG/11 . 
16. The meaning of "issued by a legal entity registered in Mongolia" is unclear. Please 
expla in what this means.  
Answer: The article 4.1.8 of the revised law on "Standardization, technical regulation and 
accreditation of conformity assessment " states that  "Supplier's Declaration of Conformity is the 
assurance by a first party or supplier that the product of conformity fulfills specified requirements".  WT/TPR/M/406/Add.1  
 
- 115 - 
 
  3.3.2.2 Standards, technical regulations, and conformity assessment  
Page 70, paragraph 3.96:  Since 2014, about one -third to one -half of the new standards have 
been aligned with international standards (Table 3.21).  
17. Please explain this divergence in standards.  
Answer: MASM is still pursuing the policy to increase the percentage of MNS standards aligned with 
the relevant international standards. The missing statistics are shown below in Table 3.21.  
Table.3.21  
Year Total 
approved 
standards  Of which are 
international 
standards  Percentage of 
standards 
harmonized to 
international 
standards  Standards 
withdrawn  Technical 
regulations  
2015 128 76 40.0 124 0 
2016 115 65 40.5 177 0 
2017 101 49. 41.0 53 1 
2018 60 20 41.2 23 0 
2019 118 81 41.5 83 4 
2020.1 -8 106 36 42.0 22 0 
18. Does Mongolia intend to align future standards with international standards? If not, 
why? 
Answer: The Article 9.2 of the revised law on "Standardization, technical regulation and 
accreditation of conformity assessment " states that "The specifications and requirements of national 
standards shall use internat ional and regional standards  if required and relevant international 
standards exist ." Therefore, t he statistics provided in the Secretariat report / Page 70 , Table.3.21 / 
refers to  the percentage of MNS standards aligned with the relevant international standards such as 
ISO, IEC, EN, ASTM, AASHTO and etc.  
Page 70, paragraph 3.98: The Secretariat Report states, "A list of technical regulations to be 
developed or revised was approved by Government Resolution No. 235 in 2019. Its Appendix lists 
18 new or revised technical regulations in the areas of environmental pollutants, 
construction/building works, measuring instruments, fire safety, alcohol, tobacco, leather 
production, meat and d airy products, personal protective equipment, explosives, vehicles, schools, 
solid fuels, and uranium leaching. As at the end of October 2020, the drafts of these technical 
regulations were under development by the respective ministries, and the deadline f or issuing them 
was extended and incorporated in the Action Plan of the Government for 2020 -24."  
19. Does Mongolia intend to notify all of these draft technical regulations to the WTO TBT 
Committee? The United States notes that Mongolia has only made 11 notif ications to the 
TBT Committee since 1997.  
Answer: MASM is in charge of submitting TBT notification to WTO. Since the last TPR in 2015, 
Mongolia has submitted 5 notifications  to WTO. Indeed, the proposed technical regulation does not 
have a significant effe ct on trade of other Members. More information is available on website of 
MASM: https://estandard.gov.mn/regular . 
Please take a note that however, due to lack of capacity and English language barrier, some 
notifications were not submitted to the WTO accordingly. MASM is working to improve the function 
of TBT National Enquiry point and train officers -in-charge of TBT m atters . MASM is seeking technical 
assistance and support for capacity building  on the compliance with WTO TBT Agreement and its 
notification obligations.  WT/TPR/M/406/Add.1  
 
- 116 - 
 
  3.3.2.3 WTO and international conventions or cooperation  
Page 71, paragraph 3.103:  
20. Please explain if M ongolia's import requirements for agricultural products are aligned 
with World Organization for Animal Health (OIE) guidelines.  
Answer: The World Trade Organization (WTO) Agreement on the Application of Sanitary and 
Phytosanitary Measures (SPS Agreement) recognizes the OIE as the international standard setting 
organization for animal health and zoonotic diseases.  
For the importing of the live animal and animal products, General Authority for Veterinary Services 
(GAVS), Mongolia follows the OIE "Terrestrial  Animal Health Code" particularly, its Section 5: "Trade 
measures, import/export procedures and veterinary certification".  
21.  If not, please explain why not. When would Mongolia's import requirements will be 
aligned with OIE guidelines?  
Page 71, paragraph 3. 103: According to the Secretariat Report, "SPS requirements and practices 
are not fully harmonized with international SPS standards" and there is "a lack of risk -based 
inspection, and regulatory and testing systems are noted as needing investment and impro vement."  
22. Please provide  an update and/or timeline as to the status of Mongolia's progress towards 
harmonizing its SPS requirements and practices with international SPS standards.  
Answer:  Mongolia has been implementing its law on border quarantine control in the time of 
entrance animal, plant or their raw materials and products since 2013.  
In addition, recommendations and international standards prescribed by the International Plant 
Protection Convention (IPPC), the World Organization for Animal Health (OI E), and Codex 
Alimentarius, and recognized by the Agreement on the Application of Sanitary and Phytosanitary 
Measures (SPS Agreement) under the World Trade Organization. For example, 87 out of Codex 
Alimentarius have been adopted as National MNS standards.  
Page 72, paragraph 3.105:  According to the Secretariat Report, Mongolia adopted several 
programs during the review period to improve the health of humans, plants, or animals. Such 
programs include: the Mongolian Export Program of 2018, the Healthy Food -Healthy Mongolia 
Program of 2019, the National Animal Health Program of 2018, and the National Vegetable Program 
of 2017.  
23. Do the cited programs follow international standards, and the use of science -based risk 
assessments?  
Answer: The capacity of many SPS laboratories has been upgraded with the assistance of bilateral 
and multilateral development partners, such as the World Bank, the International Fund for 
Agricultural Development, the European Union, and the United States Agency for International 
Development. Special thinks go to the USAID.  
With the assistance of the International Finance Corporation, the Government of Mongo lia has 
developed a framework for risk -based SPS control over imports. More than 5,500 products have 
been classified as low, medium, or high risk. Low -risk goods require only a check of documentation; 
medium -risk products require a documentation check and inspection; and high -risk goods a 
documentation check, inspection, and laboratory testing.  
Despite these improvements, Mongolia's SPS system has the following weaknesses: (i) Many 
laboratories lack the facilities, equipment, and/or human resources needed t o perform their functions 
properly. The overall capacity of the laboratory network is insufficient to establish an appropriate 
level of protection against internal and external risks to public, animal, and plant health.  
24. In the absence of science -based risk  assessments, do existing legislation or the Ministry 
of Food, Agriculture and Light Industry's (MOFALI) SPS policies allow for the use of third -
country science -based risk assessments?  WT/TPR/M/406/Add.1  
 
- 117 - 
 
  Answer:  The article 9.1.1. of Mongolian "law on border quarantine contr ol in the time of entrance 
animal, plant or their raw materials and products " states that "to follow or recognize the standards, 
guidelines and recommendations of the international agreement or convention joined Mongolia and 
bilateral agreement with foreig n countries on animal, plant quarantine".  
25. How will Mongolia address the lack of inspection and testing systems as noted by the 
Secretariat?  
Answer:  Improvement of sanitary and phytosanitary (SPS) measures in Mongolia in compliance 
with the World Trade Org anization (WTO) agreement on the application of SPS measures is an 
essential prerequisite for Mongolia to increase agriculture and food trade and diversify its economy. 
The Government of Mongolia signed the loan Agreement with the Asian Development Bank in  2016 
to finance the Regional upgrade of the SPS measures for trade project. The project addresses the 
lack of inspection and testing systems as noted by the Secretariat through upgrading of laboratories 
and inspections facilities, strengthening of the ins pection management system (IMS), and aligning 
SPS controls and inspections with international standards. The Government of Mongolia signed the 
additional loan Agreement with the Asian Development Bank in 2019 to finance the Regional 
Improvement of Border S ervices Project. The additional financing will scale up the Regional 
Improvement of Border Services Project (the ongoing project) by (i) upgrading facilities and 
equipment at two border -crossing points (BCPs) and (ii) providing capacity development support  for 
Mongolia border agencies.  
3.3.3.2 Framework  
Pages 72 -3, paragraph 3.107 : According to the Secretariat Report, a number of  areas continue 
to fall short in terms of alignment with the WTO SPS Agreement and related international agreements 
or standards. For example, "Mongolia's laws have not incorporated any of the International Plant 
Protection Convention's (IPPC) 1997 Interna tional Standards for Phytosanitary Measures (ISPMs)."  
26. Please confirm the information in the report and describe Mongolia's current efforts to 
incorporating IPPC ISPMs.  
Answer: 28 standards out of International Standards for Phytosanitary Measures (ISPMs) o f the 
International Plant Protection Convention (IPPC) were translated into Mongolian within the 
framework of technical cooperation project "Capacity Building of Plant Protection sector in Mongolia" 
implemented by Food and Agriculture Organization  (FAO) of  the UN in 2015 Mongolia. However, the 
proposed ISPM standards are in the process of development and not yet approved by MASM.  
Indeed, border controls and inspections of plant -based products have been regulated by relevant 
national laws and standards, inc luding the provisions and recommendations of the WTO SPS 
Measures. In addition, Mongolia has list of quarantine and non -quarantine pests approved by the 
order of the Minister of Food, Agriculture and Light Industry (MOFALI).  
The MOFALI and the General Agen cy for Specialized Inspection GASI) have identified the priority list 
of ISPMs of the IPPC be adopted as the national MNS standards and implemented accordingly.  
ISPM 5; ISPM 6; ISPM 15; ISPM 31; ISPM 4; ISPM 34; ISPM 36 are included in the list of p riority 
standards for Mongolia.  
27. Please also provide further information regarding any obstacles and/or barriers 
preventing the incorporation of IPPC ISPMs.  
Answer: As a result of the above project, the following recommendations and conclusions were 
made: (i) A doption of recommendations and international standards prescribed by the International 
Plant Protection Convention (IPPC), the World Organization for Animal Health (OIE), and Codex 
Alimentarius, and recognized by the Agreement on the Application of Sanitar y and Phytosanitary 
Measures (SPS Agreement) ,  (ii) to establish the Plant Biosafety Department or the National Plant 
Protection Organization at the MOFALI ( which consists of several divisions such as Import, Export, 
phytosanitary measures within the coun try and phytosanitary inspection at border points, 
international cooperation and administration), (iii) trainings to strengthen SPS capacity in the area 
of alien pest risk analysis, border points inspection and certification activities, alien pest surveill ance WT/TPR/M/406/Add.1  
 
- 118 - 
 
  according to the ISPM 6, plant quarantine certification system, alien pest reporting and 
determination of pest free areas, (iii) in order to prevent introduction of the quarantine and alien 
pests in the territory of the country with plant origin mater ials and products, some phytosanitary 
measures specific for some products which have ricks should be included in the import certificate, 
(iv) vote on the development of the IPPC and express the country's position and fulfilment of 
obligations under the Con vention.  
Barriers to the implementation of the above recommendations are:  
- No independent national plant protection organization;  
- Lack of human resources in government organizations, only 1 -2 specialists responsible for plant 
protection issues /their o bligation not fully focused on the SPS, they main duties are developing 
policy on plant protection sector, registration of pesticides, issuing special certificate for pesticide 
import and selling, issuing quantity of imported pesticides to the entities, de velopment of plant 
protection measures for crop production and pastural areas, organization of seminars and trainings 
etc.;  
- Organizations related with plant protection and phytosanitary issues belong to different authorities 
and have lack of coordinatio n; 
- Managers and decision -makers have not enough knowledge o n SPS, thus it is given  a little 
importance  due to lack of professionalism;  
- Insufficient budget and resources to implement SPS standards;  
- Language barriers for SPS inspectors working at border points, insufficient ability to translate these 
standards directly from six UN languages, limited access to training and seminars, and insufficient 
access to equipment as well.  
Pages 72 -3, paragraph  3.107:  The Secretariat Report  also states that there are discrepancies in 
definitions between its food laws and the Codex as well as a lack of risk -based assessment.  
28. Please describe the discrepancies in definitions between Mongolia's food safety laws and 
those in the Codex Alimentarius? How does Mongolia plan to address these 
discrepancies?  
Answer: Food safety issues have been always one of the priority areas of the Government of 
Mongolia. The Government of Mongolia in partnership with FAO and WHO of the United Nations has 
been developing efficient food control management systems since December 2019.  This is the first 
tripartite technical cooperation project in support of developing efficient food control management 
systems in Mongolia. The Office of the National Security Council (NSC)/national food security council 
are the key national counterpart in tegrating inputs from relevant national agencies.  
This project aims to improve capacities of key stakeholders for food safety control and management 
and strengthen national food system to ensure affordable, safe and nutritious food supply for 
Mongolian po pulation. The project will make an assessment on the implementation of Food Law to 
identify areas and develop baseline for legal and policy interventions to promote safe and healthy 
diets strengthen systems for food safety surveillance, risk assessment, ri sk-based food inspection 
and risk communication; and raise consumer awareness on food safety including good practices for 
food handling.  
3.3.5 State trading, state -owned enterprises (SOEs), and privatization  
Page 76, paragraph 3.122 and 3.123: The United States notes that the Draft Guidelines for 
Privatization and Reorganization of State Property in 2018 -20 have not been approved by the 
Mongolian Parliament. Some industry contacts have expressed concern about SOEs crowding out 
private -sector investment.  
29. How does Mongolia intend to address this concern, and will Mongolia continue pursuing 
its privatization plan?  WT/TPR/M/406/Add.1  
 
- 119 - 
 
  Answer:  The Draft Guidelines for Privatization and Reorganization of State Property in 2018 -20 was 
not approved by the Parliament. However, t he re vision of the State and Local Property law is 
proposed and expected to be submitted to the Parliament. Pursuant to the proposed draft law, the  
Government now seeks to change its s tate property  privatization efforts  that previously required 
approvals to be done yearly, to the "case by case" method that allows cases to be discussed at the 
Parliament accordingly.  
Page 77, paragraph 3.127: The Secretariat Report indicates that Mongolia has stated that it does 
not maintain any state trading enterprises. However , according to the most recent data compiled by 
the Secretariat for the Working Party on State Trading Enterprises, Mongolia has not provided a 
notification regarding its state trading enterprises since 2001, despite having a biennial requirement 
to do so.   
30. When will Mongolia submit the required notifications to the Secretariat, and will they 
cover the period from 2001 – present?  
Answer:  Mongolia is in the process of preparing and submitting the above -mentioned notification 
to the WTO TBT Committee.  
3.3.6 Government procurement  
Page 79, paragraph 3.128: Although Mongolia is not currently a signatory to the WTO plurilateral 
Agreement on Go vernment Procurement (GPA), it is an observer to the Committee and plans to 
conduct an internal survey regarding whether to join the GPA.  
31. Please share whether there has been any progress in regard to conducting an internal 
survey on acceding to the GPA.  
Answer: The subject matter is in the early stage of internal discussion of the Cabinet.  
3.3.7 Intellectual property rights  
3.3.7.1 Overview  
Page 80, paragraph 3.134: In paragraph 3.134, reference is made to legislation to revise the Law 
on Intellectual Property that was implemented as of 1 December 2020.  
32. Where can a public copy of this law be found?  
Answer:  The legislation can be found both in English and Mongolian on the Mongolian legal portal 
https://www.legalinfo.mn/law/details/15971?lawid=15971 . 
Page 80, paragraph 3.134 : The Secretari at Report notes that "[i]n 2015, Mongolia adopted the 
National Strategy for the Development of Intellectual Property. The strategy was implemented 
between 2015 and 2018. Legislation was drafted to revise existing IP laws, namely the Patent Law, 
the Law on Copyright and Related Rights, and the Law on Trade Marks and Geographical Indications. 
The Patent Law of 25 June 1993 was amended in September 2016. Parliament adopted the Law on 
Intellectual Property on 23 January 2020, and it will enter into force on 1 D ecember 2020. According 
to the authorities, the Law aims to address overlaps, conflicts, and other issues within existing IP 
laws."  
33. Was the Law on Copyright and Related Rights revised as a result of the implementation 
of the National Strategy for the Devel opment of Intellectual Property? If so, please 
explain the principal amendments to the Law on Copyright and Related Rights.  
Answer:  Revision of the Copyright and Related Rights Law covers comprehensive areas considering 
ever-changing environment of this d ynamic industry. Followings are key changes on the draft law.  
• Add and/or alter definitions of certain terminology on the law;  
• Provision on the computer programme and defined the right holder;  
• Provision on audiovisual works;  
• Photography and applied art wil l be protected for 25 years since its creation;  WT/TPR/M/406/Add.1  
 
- 120 - 
 
  • Provision to determine rights of computer programme and database creator;  
• Provision on limitation and exception and fair use of copyright;  
• Elaborated regulation related with CMOs;  
• Provision on use of works p reserved at museum, library, and archive;  
• Provision related with the accession of Marrakesh Treaty;  
There were several reasons to revise the law including implementation of National Strategy for the 
Development of Intellectual Property, Government Plan to  Optimize Legislations within 2016 -2020, 
and Mongolia's accession to Marrakesh Treaty etc.  
Pages 80 -81, paragraph 3.135 : The Secretariat Report states that the Law on Copyright and 
Related Rights was last amended in January 2006. Table 2.2 on page 26, how ever, states that the 
Copyright Law was last amended in 2017.  
34. When was the last amendment to the Law on Copyright and Related Rights?  
Answer:  The Law on Copyright and Related Rights was approved in January 2006. The law has been 
amended respectively in 2016 and 2017 following the merging of IP Office to the State Registration 
Authority and ratification of the Infringement Law.  
35. Will the latest version of the Law on Copyright and Related Rights be available from 
WIPO's Lex service?  
Answer:  Earlier version (2006) of the Copyright and Related Rights Law is available both at the 
WIPO Lex service and Mongolian legal portal http://www.legalinfo.mn/ . 
3.3.7.2 Copyright and related rights  
Page 82, paragraph 3.142 : The Secretariat Report states the "Marrakesh Treaty to Facilitate 
Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled 
entered into force in 2017."  
36. Has the government of Mongolia since enacted legislation to  implement the Marrakesh 
Treaty? If so, please detail the legislation, and where it can be found online.  
Answer:  Relevant regulation in accordance with the implementation of the Marrakesh Treaty has 
been made in the draft Copyright and Related Rights Law.   
Page 82, paragraph 3.141:  According to the Secretariat Report, the Law on Copyright and Related 
Rights, revised in 2006, regulates matters related to the protection of copyright and issues arising 
in connection with the use of works that are subject to c opyright; however, software piracy within 
the Mongolian government remains widespread. According to industry and local contacts, there have 
been several public events during which a government official presented on a government computer 
using an unregister ed copy of a Microsoft product.  
37. What is the government's plan and timeline for ensuring that government agencies do 
not use unlicensed software?   
Answer: The Government of Mongolia attaches great importance to the protection of intellectual 
property, as w ell as the use of licensed software, and in this regard, the 2019 amendment to the 
Communications Law  obliges users to use certified software. In addition, the Mongolian government 
is developing a draft cybersecurity law for approval by the parliament, whi ch provides for the annual 
budgeting of government agencies for security measures. This law is expected to enter into force in 
2023.  
38. Moreover, the local collective -management organization (CMO) has reported that 
several high -profile companies have refused to strike licensing arrangements for playing 
unlicensed music in a commercial setting. Does the government intend to encourage 
companies to seek licensing arrangements with CMOs?  WT/TPR/M/406/Add.1  
 
- 121 - 
 
  Answers to Q37 and Q38:  The IPOM provides continuous recommendations and guid elines to right 
holders and companies on respecting copyright and abiding relevant legislations. In addition to that, 
the IPOM published a toolkit on CMO in Mongolian for right holders to build their knowledge on CMOs.  
Page 82, paragraph 3.141:  The Secret ariat Report notes that "[u]nder the Law on Copyright and 
Related Rights and the Law on Infringement, pirated websites will be taken down by the 
Communications Regulatory Commission of Mongolia at the request of the Intellectual Property 
Office of Mongolia  (IPOM)." Please provide  additional information about the process for taking down 
pirated websites. Specifically:  
39. What evidence and/or documentation must a copyright owner show to the IPOM for it 
to request a takedown by the Communications Regulatory Commi ssion of Mongolia 
("CRCM")?  
Answer:  Following a complaint from right holders, IPOM, firstly, shall conduct an inspection in 
accordance with the Infringement Law. If the case is confirmed through inspection that violation of 
law and infringe rights of righ t holders exists, IPOM shall send official letter requesting closure of 
the pirated websites together with the inspection statement. Upon receipt of the documents, CRCM 
shall take down those pirated websites.  
40. Are IPOM's requests automatically granted, or can they be denied?  
Answer:  Yes. Denial is rare. CRCM doesn't deny any requests made by competent authority, IPOM, 
once the procedure is complied.  
41. If they are denied, under what reasons may CRCM deny a request?  
Answer:  CRCM shall deny if inspectors' statement is not submitted together with official request.  
42. Is there a process for appeals through which an alleged infringer can challenge IPOM's 
request?  
Answer:  In accordance with relevant legislation, website shall be t aken down and infringer shall be 
fined. If an infringer wants to challenge IPOM's decision, he shall forward his request to the court.  
43. Does the Law on Intellectual Property of 23 January 2020, which entered into force in 
December 2020, alter this whole pr ocess? If so, how?  
Answer:  No. 
3.3.7.3 Industrial property  
Page 83, paragraph 3.146: According to the Secretariat Report, Mongolia's methods for protecting 
trademarks and geographical indications (GIs) have remained largely unchanged since the previous 
Review. Under the Law on Trade Marks and Geographical Indications (as amended in June 2010):  
44. It appears that a third party may seek to cancel a registered GI under Article 33.1.1. On 
what grounds  may cancellation be granted beyond genericness as set forth in  Article 
20.2.1?  
Answer: Third party may appeal to the Dispute Resolution Council to request cancellation of a 
registration of a GI and it shall be considered on the basis of Article 20.2.1. In addition, registered 
GI can be cancelled on the grounds as men tioned in the Article 28.1 of the Trademark and GI law.  
45. Does the State Administration consider prior registered trademarks when judging 
applications  for geographical indications in accordance with Article 24?  Or is assessment 
based solely on whether the GI meets the requirements specified in Article 20?  
Answer:  Examination shall be conducted on the basis of Article 20 of the Law on Trademark and 
GI.  WT/TPR/M/406/Add.1  
 
- 122 - 
 
  46. Can a registered trademark be canceled under Article 18.1.4, which provides for 
termination on "other grounds specified in the law," on the basis of a later -protected 
geographical indication? If so, what grounds must be specified?   
Answer:  Third party can appeal to cancel the registered trademark by submitting a request to the 
Dispute Resolution Council as specified in the Article 33.2 of the Trademark and GI law.  
Page 83, paragraph 3.147:  According to the Secretariat Report, the EU and Mongolia will concl ude 
an agreement on GIs.  
47. What is the timeline for completion of this agreement?  
Answer:  As we are contemplating it, we cannot provide exact timeline at the moment. We will try 
to conclude it the earliest possible time as mentioned in the agreement.  
In ad dition, GIs has been one of the discussion points of bilateral Sub -committee on Trade and 
Investment in the past few years. Mongolia and the EU agreed to exploratory talks with the view of 
launching the negotiations in the future. Mongolia is working with the EU and the WIPO in building 
national capacity in GIs.  
48. As of June 2019, 20 GIs had been registered in Mongolia.  How many have been 
registered to date?  
Answer:  As of the end of 2020, there are total of 39 GIs, 33 local and 6 foreign GIs, registered at 
the IPOM.  
Pages 83 -84, paragraph 3.150 : The Secretariat Report states that "Article 29 of the Patent Law 
on the enforcement of patent legislation and copyright an d patent rights was amended in December 
2015. The revised Patent Law entered into force on 1 September 2016." (emphasis added)  
49. Does Mongolia's Patent Law provide remedies for copyright infringement?  
Answer:  Patent law does not address remedies for copyrig ht infringement. However, according to 
the Article 18.1 of Patent law, patent owner has the right to prohibit manufacturing a product using 
an invention, industrial design or utility model, selling, using as well as storing or importing such 
products for s uch purposes.  
Questions based on the Government Report (WT/TPR/G/406)  
2.3 Regional Cooperation and Free Trade Agreements  
Page 7, paragraph 2.23 : The Government Report discussed Mongolia's efforts to translate the 
laws of Mongolia and publish unofficial Eng lish translations.  
50. What are Mongolia's plans for publishing English summaries of the purpose and rationale 
of proposed laws and regulations when they are first published in Mongolian?  
Answer:  The Government of Mongolia is fully committed to implementing the U.S -Mongolia 
Transparency Agreement. Within this context, the National Legal Institute has begun to publish the 
English translations of the laws of Mongolia. It is planned for publishing English summaries of the 
proposed laws and regulations, but there may be a delay due to resource and capacity constraints.  
51. Will Mongolia also publish English translations of draft measures that are used for public 
comment?  
Answer:  According to the U.S -Mongo lia Transparency Agreement, the obligation under the Article 
2.5 is to publish an English language version of a summary or an explanation but it is not obligated 
to publish an English language version of the entire text of the draft measures. When the reso urce 
and capacity issues are sorted out, translations of draft measures for public comment are possible.  
  WT/TPR/M/406/Add.1  
 
- 123 - 
 
  FOLLOW -UP QUESTIONS FRO M THE UNITED STATES  
Questions based on the Secretariat Report (WT/TPR/S/406)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3.2 Standards and other technical requirements  
3.3.2.2 Standards, technical regulations, and conformity assessment  
Page 70, paragraph 3.98: The Secretariat Report states, "A list of technical regulations to be 
developed or revised was approved by Government Resolution No. 235 in 2019. Its Appendix lists 
18 new or revised technical regulations in the areas of environmental pollutants, 
construct ion/building works, measuring instruments, fire safety, alcohol, tobacco, leather 
production, meat and dairy products, personal protective equipment, explosives, vehicles, schools, 
solid fuels, and uranium leaching. As at the end of October 2020, the draft s of these technical 
regulations were under development by the respective ministries, and the deadline for issuing them 
was extended and incorporated in the Action Plan of the Government for 2020 -24."  
52. Does Mongolia intend to notify all of these draft tech nical regulations to the WTO TBT 
Committee? The United States notes that Mongolia has only made 11 notifications to the 
TBT Committee since 1997.  
Answer: MASM is in charge of submitting TBT notification to WTO. Since the last TPR in 2015, 
Mongolia has subm itted 5 notifications  to WTO. Indeed, the proposed technical regulation does not 
have a significant effect on trade of other Members. More information is available on website of 
MASM: https://estandard.gov.m n/regular .  
Please take a note that however, due to lack of capacity and English language barrier, some 
notifications were not submitted to the WTO accordingly. MASM is working to improve the function 
of TBT National Enquiry point and train officers -in-charge of TBT matters . MASM is seeking technical 
assistance and support for capacity building  on the compliance with WTO TBT Agreement and its 
notification obligations.  
U.S. Follow -up Question:  The United States takes note of Mongolia’s response and MASM’s in terest 
in receiving technical assistance.  Is Mongolia currently working with the WTO, other countries, or 
organizations on capacity building efforts for compliance with the TBT Agreement and notification 
obligations?  
Answer:  Currently, Mongolia is not working with other countries or organizations on the compliance 
with WTO TBT Agreement and notification obligations. MASM is still seeking technical assistance and 
support for capacity building on this issue.  
3.3.2.3 WTO and international conventions or co operation  
Page 71, paragraph 3.103:   
53. Please explain if Mongolia's import requirements for agricultural products are aligned 
with World Organization for Animal Health (OIE) guidelines.  
Answer: The World Trade Organization (WTO) Agreement on the Application  of Sanitary and 
Phytosanitary Measures (SPS Agreement) recognizes the OIE as the international standard setting 
organization for animal health and zoonotic diseases.  
For the importing of the live animal and animal products, General Authority for Veterinar y Services 
(GAVS), Mongolia follows the OIE "Terrestrial Animal Health Code" particularly, its Section 5: "Trade 
measures, import/export procedures and veterinary certification".  
U.S. Follow -up Question:  The United States notes Mongolia’s stated commitment  to aligning its  
import requirements with international standards for meat/poultry and other agricultural products. 
We look forward to the resolution of outstanding market access requests consistent with these 
commitments.   WT/TPR/M/406/Add.1  
 
- 124 - 
 
  Answer:  General Authority for Veterinary Services (GAVS), Mongolia issues an international 
veterinary certificate for meat/poultry and other agricultural products according to OIE "Terrestrial 
Animal Health Code" particularly, its Section 5: "Trade measures, import/export  procedures and 
veterinary certification". Based on the GAVS certificate the import/export permit is issued by the 
GASI.  
 
3.3.7 Intellectual property rights  
3.3.7.1 Overview  
Page 80, paragraph 3.134 : The Secretariat Report notes that "[i]n 2015, Mongolia a dopted the 
National Strategy for the Development of Intellectual Property. The strategy was implemented 
between 2015 and 2018. Legislation was drafted to revise existing IP laws, namely the Patent Law, 
the Law on Copyright and Related Rights, and the Law o n Trade Marks and Geographical Indications. 
The Patent Law of 25 June 1993 was amended in September 2016. Parliament adopted the Law on 
Intellectual Property on 23 January 2020, and it will enter into force on 1 December 2020. According 
to the authorities,  the Law aims to address overlaps, conflicts, and other issues within existing IP 
laws."  
33. Was the Law on Copyright and Related Rights revised as a result of the implementation 
of the National Strategy for the Development of Intellectual Property? If so, ple ase 
explain the principal amendments to the Law on Copyright and Related Rights.  
Answer:  Revision of the Copyright and Related Rights Law covers comprehensive areas considering 
ever-changing environment of this dynamic industry. Followings are key changes  on the draft law.  
• Add and/or alter definitions of certain terminology on the law;  
• Provision on the computer programme and defined the right holder;  
• Provision on audiovisual works;  
• Photography and applied art will be protected for 25 years since its creat ion; 
• Provision to determine rights of computer programme and database creator;  
• Provision on limitation and exception and fair use of copyright;  
• Elaborated regulation related with CMOs;  
• Provision on use of works preserved at museum, library, and archive;  
• Provision related with the accession of Marrakesh Treaty;  
There were several reasons to revise the law including implementation of National Strategy for the 
Development of Intellectual Property, Government Plan to Optimize Legislations within 2016 -2020, 
and Mongolia's accession to Marrakesh Treaty etc.  
U.S. Follow -up Questions:   
• What is the expected timeline for formal approval and enactment of the draft 
amendments to the Law on Copyright and Related Rights?  
Answer:  The expected time for the approved of the abovementioned law is a spring session of the 
Parliament, which will meet from mid -March until mid -July 2021.  
• Is a public copy of the draft amendments available for review?  
Answer:  The draft amendment is available at the following link: http://forum.parliament.mn/ 
projects/10983 . 
Relevant public discussion has been held throughout 2019.  
• What is the scope of the change regarding the “provision on audiovisual works”?  
Answer:  Provisio ns related with audiovisual works are new provisions and define terms. Article 28 
of the draft law, specifically illustrates rights and duties of performers in line with international 
copyright treaties.  
• Does the key change regarding the “provision on limi tation and exception and fair 
use of copyright” ensure that uses do not conflict with the normal exploitation of the WT/TPR/M/406/Add.1  
 
- 125 - 
 
  work and do not unreasonably prejudice the legitimate interests of the author? If so, 
please explain.  
Answer:  Article 38 to Article 46 of the draft law specifies different uses in regard to the limitations 
and exceptions.  
3.3.7.2 Copyright and related rights  
Page 82, paragraph 3.142 : The Secretariat Report states the "Marrakesh Treaty to Facilitate 
Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled 
entered into force in 2017."  
36. Has the government of Mongolia since enacted legislation to  implement the Marrakesh 
Treaty? If so, please detail the legislation, and where it can be found online.  
Answer:  Relevant regulation in accordance with the implementation of the Marrakesh Treaty has 
been made in the draft Copyright and Related Rights Law.  
U.S. Follow -up Questions:   What specifically does the relevant regulation implement with regards 
to the Marrakesh Treaty?  
• What recordkeeping or other obligations does the regulation place on authorized 
entities?  
Answer:  Article 41 of the draft law thorou ghly explained the use of copyrighted works in line with 
Marrakesh Treaty.  
3.3.7.3 Industrial property  
Page 83, paragraph 3.146: According to the Secretariat Report, Mongolia's methods for protecting 
trademarks and geographical indications (GIs) have remained largely unchanged since the previous 
Review.  Under the Law on Trade Marks and Geographical Indications (as amended in June 20 10):  
37. It appears that a third party may seek to cancel a registered GI under Article 33.1.1. On 
what grounds may cancellation be granted beyond genericness as set forth in Article 
20.2.1?  
Answer: Third party may appeal to the Dispute Resolution Council to request cancellation of a 
registration of a GI and it shall be considered on the basis of Article 20.2.1. In addition, registered 
GI can be cancelled on the grounds as mentioned in the Article 28.1 of the Trademark and GI law.  
U.S. Follow -up Question:  Article 28.1.4 indicates rights of a user of a GI may be terminated on 
the basis of “other grounds laid down in law.”  
• Beyond Article 20.2.1 and Articles 28.1.1, 28.1.2, and 28.1.3, are there any other 
grounds in the law of Trademarks and GIs, or any other la w, on which a third party 
may seek to cancel a GI?  If so, please explain.  
Answer:  Presently, articles mentioned above are the grounds for cancellation of the GI.   
38. Does the State Administration consider prior registered trademarks when judging 
application s for geographical indications in accordance with Article 24?  Or is assessment 
based solely on whether the GI meets the requirements specified in Article 20?  
Answer:  Examination shall be conducted on the basis of Article 20 of the Law on Trademark and 
GI.  
U.S. Follow -up Questions:   
• Will the State Administration refuse protection of a GI on the basis of a previously 
registered trademark?  WT/TPR/M/406/Add.1  
 
- 126 - 
 
  Answer:  No. 
• If not, will the Dispute Resolution Council grant a request for cancellation of a 
registration of a GI on the  basis of a third -party request due to a previously 
registered trademark?  
Answer:  Registration process of GI and trademark are different. When examiner conduct 
assessment to register GI, she/he will check if this GI becomes generic or not and will not furt her 
check with trademark database. However, when they examine trademark application, they will check 
against GI database and applied trademark is already registered as a GI, it is a ground for refusal.  
39. Can a registered trademark be cancelled under Article  18.1.4, which provides for 
termination on "other grounds specified in the law," on the basis of a later -protected 
geographical indication? If so, what grounds must be specified?  
Answer:  Third party can appeal to cancel the registered trademark by submitting a request to the 
Dispute Resolution Council as specified in the Article 33.2 of the Trademark and GI law.  
U.S. Follow -up Question:  On what ground must a third party claim under Artic le 5 of the Law on 
Trademark and GI  to cancel a registered trademark on the basis of a protected GI?  
Answer:  A third party may cite grounds specified in the Article 5.2 of the law.  
Page 83, paragraph 3.147:  According to the Secretariat Report, the EU and Mongolia will conclude 
an agreement on GIs.  
40. What is the timeline for completion of this agreement?  
Answer:  As we are contemplating it, we cannot provide exact timeline at the moment . We will try 
to conclude it the earliest possible time as mentioned in the agreement.  
In addition, GIs has been one of the discussion points of bilateral Sub -committee on Trade and 
Investment in the past few years. Mongolia and the EU agreed to explorato ry talks with the view of 
launching the negotiations in the future. Mongolia is working with the EU and the WIPO in building 
national capacity in GIs.  
U.S. Follow -up Questions:   
• How is Mongolia seeking to build national capacity in GIs?  
• What are the measur es for assessing progress?  
Answer:  At this stage, we are drafting capacity building plan. It will consist of various outreach 
programmes, training for stakeholders and government officials.  
41. As of June 2019, 20 GIs had been registered in Mongolia.  How many have been 
registered to date?  
Answer:  As of the end of 2020, there are total of 39 GIs, 33 local and 6 foreign GIs, registered at 
the IPOM.  
U.S. Follow -up Question:  Is there a publicly -accessible database or webpage listing available to 
locate inform ation about these GIs? If so, please explain how th is information may be accessed.  
Answer:  Please see the link below.  
 https://publish.ipom.mn/wopublish -search/public/trademarks?1&query=*:*   
__________