RESTRICTED  
  
WT/ACC/TLS/ 20 
 
28 February  2022 
(22-1941) Page: 1/33 
Working Party on the Accession of Timor -Leste  Original: English  
 
ACCESSION OF TIMOR -LESTE  
QUESTIONS AND REPLIES  
The following submission, dated 28 February 2022 , is being circulated at the request of the 
Delegation of the Democratic Republic of Timor -Leste.  
 
_______________  
 
  WT/ACC/TLS/ 20 
 
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  TABLE OF CONTENT S 
 
GENERAL  ................................ ................................ ................................ .........................  3 
II. ECONOMY, ECONOMIC POLICIES, AND FOREIGN TRADE  ................................ ........  4 
- Monetary and fiscal policy  ................................ ................................ ......................  6 
- Foreign exchange and payment system  ................................ ................................ . 8 
- State ownership and privatisation  ................................ ................................ ..........  9 
- Pricing policy  ................................ ................................ ................................ ........  10 
IV. POLICES AFFECTING TRADE IN GOODS  ................................ ................................  12 
- Trading rights, registration  requirements for engaging in importing and exporting
  ................................ ................................ ................................ .............................  12 
A. IMPORT REGULATIONS  ................................ ................................ ........................  13 
- Tariff quotas, tariff exemptions  ................................ ................................ ............  13 
- Import licensing procedures  ................................ ................................ ................  14 
- Customs valuation  ................................ ................................ ................................  17 
- Application of internal taxes on imports  ................................ ...............................  20 
- Anti-dumping regime  ................................ ................................ ...........................  21 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE I N GOODS SANITARY AND 
PHYTOSANITARY MEASURES  ................................ ................................ ................  21 
- Technical barriers to trade, standards and certifications  ................................ ...... 21 
- Sanitary and phytosanitary measures  ................................ ................................ .. 22 
- Government procurement  ................................ ................................ ....................  28 
- Agricultural policies  ................................ ................................ .............................  29 
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIME  ................................ ............  31 
VI. POLICIES AFFECTING TRADE IN SERVICES  ................................ ..........................  32 
VII.  TRANSPARENCY  ................................ ................................ ................................ ... 32 
- Notifications  ................................ ................................ ................................ .........  32 
VIII.  TRADE AGREEMENTS  ................................ ................................ ............................  32 
 
 
 
  WT/ACC/TLS/ 20 
 
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  GENERAL  
Question 1 
Could Timor -Leste please indicate if it has considered joining the WTO Joint Initiative 
negotiations on Services Domestic Regulation, E-commerce and Investment Facilitation? 
As well as the work on trade and women's economic empowerment and the work on trade 
and Micro, Small and Medium -sized Enterprises (MSMEs)?  
Answer : 
Yes, Timor -Leste is considering joining  the WTO Joint Initiative negotiations on Services Domest ic 
Regulation, E-commerce, and Investment Facilitation  for Development,  as well as the work on trade 
and women 's economic empowerment and the work on trade and Micro, Small and Medium -sized 
Enterprises  (MSMEs) . However, given Timor -Leste 's current stat us as an LDC, Timor -Leste kindly 
requests for Members ' consideration of Timor -Leste's development, financial and trade needs when 
joining such initiatives.  
Question 2 
Due to the fact that Timor -Leste is now under the accession process to the A SEAN and the 
WTO in parallel, please clarify the roadmap of Timor -Leste in the WTO accession process 
apart from ASEAN accession.  
Answer : 
An indicative roadmap for Timor -Leste 's accession process to the WTO was first developed in 
July 2020 in accordance with Timor -Leste 's accession momentum at that time, which indicated 
Timor -Leste 's possible membership towards the end of 2021. However, considering a few aspects 
that ha d influenc ed the delay in the accession process, including lockdowns that took place 
throughout 2020 and 2021 , coupled with  the national calamity that took place in April 202 1, this 
goal could not  be achieved. Thus, taking into consideration  these unprecedented even ts, the 
Government's current objective is to conclude its WTO accessions negotiations by end -2022.  
Therefore , the Government of Timor -Leste is currently working with Working Party Members  with an 
aim to speed -up its accession process and become a member to the WTO by the indicated timeline. 
At the same time, the Government  works to seek the necessary technical assistance from Members 
and other donor partners in a well -coordinated approach to accelerate  Timor -Leste 's integration into 
the multilateral trading system.  
Question 3 
In Timor -Leste perspective, which WTO's agreement or process is the most challenging 
to comply with? How long will it take for Timor -Leste to be able to comply with? And is 
there any necessary support needed from WTO Members?  
Answer : 
For the Government of Timor -Leste, WTO Agreements and rules that are most challenging to comply  
with are , inter alia : 
i. Trade Facilitation Agreement;  
ii. TBT Agreement ; 
iii. SPS Agreement ; 
iv. TRIPS Agreement;  
v. VAT implementation . 
In terms of the length of time needed to comply with these Agreements , kindly refer to the  Action 
Plans submitted  to the Working Party , which elaborated the number of years proposed to fully comply 
with these Agreements/provisions . WT/ACC/TLS/ 20 
 
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  Necessary support includes , inter alia : 
i. Training of key officials from the relevant Ministries/ Agencies in specialized areas, including: 
departments under the Ministry of Agriculture and Fisheries ; Ministry of Tourism, Commerce 
and Industry ; Ministry of Health ; Ministry of Finance ; Secretary of State for Envir onment ; 
Authority of Inspection and Supervision of Economic, Sanitary and Food Activity ; Quality 
Institute of Timor -Leste ; Customs Authority ; and the private sector;  
ii. Develop capacity building in key Ministries and engage them at the national level of WTO 
accession, and continue to provide advisory services to facilitate the internal reforms;  
iii. Support comparative studies programs in other countries that have effectively implemented 
these measures;  
iv. Support the establishment of national standards bodies, includ ing TBT enquiry point, and 
the upgrading of national legal and regulatory frameworks;  
v. Support to establish a functional Food Control System to be responsible for and coordinate 
food control activities in the country with capacity to undertake the following  to international 
best practice;  and, 
vi. Support to establish basic infrastructure in aligning with international standards to support 
the implementation of these relevant measures.  
II. ECONOMY, ECONOMIC POLICIES, AND FOREIGN TRADE  
Question 4 
Paragraph 10:1 In overcoming the COVID -19 pandemic situation, Timor -Leste states it 
had adopted the Economic Recovery Plan 2020 - 2023 for short, medium and long -term 
recovery.  
• Could Timor -Leste explain the current situation of economic development in 
Timor -Leste after adopting the Economic Recovery Plan 2020 – 2023? We realize 
the importance of transparency  of trade policies and trade -related policies in 
handling COVID -19. 
Answer : 
In August 2020, the Government adopted the Economic Recovery Plan (ERP) for 2020 -2023 with 
the aim to gradually recover from the impacts  of COVID -19. The Plan defined a set of measures to 
protect employment and guarantee income for families and companies in difficulty, minimize the 
stagnation of economic activities, contribute to economic transformation, create more decent jobs, 
consolidate social programs for public investment and chang e the structure of the economy with the 
objective to contribute to Timor -Leste's economic growth.  The ERP has been submitted to the 
Working Party (legislation notice WT/ACC/TLS/19 ). 
In 2020-2021, the Government has implemented four short -term ERP measures : (i) universal Basic 
Basket program, (ii) recovery subsidies for  the private sector, (iii) contributory subsidies for the 
private sector , and (iv) special support for informal workers . 
While Timor -Leste has only recently started to implement the above ERP measures , these ongoing 
initiatives continue to bring more opportunities to companies to operate during the pandemic, while 
also maintain ing the employment of workers . According to SERVE 's data, more companies were 
registered in 2020 compared to the previous year . Despite the lockdown amid the COVID -19 
pandemic, t he increase was around 26%,  as a result of  the Government 's economic recovery 
measures that began  in mid -2020. 
 
1 Here and below, unless otherwise specified, paragraph numbers are meant to refer to the Factual 
Summary of Points Raised  (JOB/ACC/TLS/ 4). WT/ACC/TLS/ 20 
 
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  Question 5 
Questions  and Replies (WT/ACC/TLS/16), f ollow up question to Question 11: Referring 
to the answer to this question, could Timor -Leste give a provisional time period regarding 
its plan to develop any policy measures in relation with measu res affecting state trading 
enterprises?  
Answer : 
The Government of Timor -Leste has established a Commission for Coordination and Monitoring the 
Institutional Reforms in August 2020 in accordance with the Government Resolution No. 29/2020  of 
19 August  2020. Its mandate is to strengthen and improve public sector management, while at the 
same time safegua rding the roles and functions of  the public sector in accordance with legal 
frameworks that are effective and efficient. This scope of reform will also be extended to public 
enterprises.  
The Commission is currently in the process of  developing  a roadmap fo r the implementation of this 
reform  to strengthen public enterprises along with its legal framework, which includes  the roles of 
state trading enterprises. The latest Commission meeting took place in November 2021 to discuss 
the state of play of the roadma p. It is in the Commission 's plan to approve the roadmap in the next 
Commission meeting in the first half of this year. 
Timor -Leste took note of Member 's request and will provide a copy of the roadmap once it has been 
approved by the Council of Ministers . 
Question 6 
Questions and responses (WT/ACC/TLS/16): w ith reference to the answer provided by 
Timor -Leste to Question 6 where Timor -Leste  responded that the Government has 
developed the Investment Reform Map (IRM) with the purpose to outline the promotion 
and attraction of private investments in priority sectors, stimulation of growth, and 
support of diversification of economy including enh anced opportunities for women, we 
would like to enquire further on :  
• Are there any work plan or roadmap to promote women's participation  and how 
would it be connected to the Investment Reform Map for the enhancement of 
opportunities for women?  
• Are there any specific sectors or industries targeted in such initiative?  
Answer : 
Gender responsive measures have been integrated into Timor -Leste 's National Strategic 
Development Plan (SDP) 2010 -2030. Key gender -related  measures  reflected  in the Plan  include 
equity for women employed in agriculture, industry and services, as part of the Government's  
poverty reduction efforts.  
The Investment Reform Ma p (IRM) highlights the importance placed by  the Government on further 
enabl ing women in Timor -Leste to participate effectively in the country 's economic development. 
At the operational level, TradeInvest 's Strategic Plan include s the promotion, facilitatio n and building 
of relationship s with women entrepreneurship in the country. Accordingly , TradeInvest has built an 
effective collaboration with  the Women Business Association , under the umbrella of the Chambers 
of Commerce and Industry of Timor -Leste.  
In ad dition, according to TradeInvest Timor -Leste 's Technical Assessment, some sectors are 
identified as particularly  important for women. For example, the garment industry, which has  
relatively high export potential, accounts for more than 50% of women employe es. Over 70% of 
households are dependent on the agricultural industry for their primary source of livelihood with 
high involvement of women  at the processing level. In  the tourism industry, most women have run 
and owned small businesses in arts and crafts products.  WT/ACC/TLS/ 20 
 
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  Having said that, TradeInvest Timor -Leste will ensure the enhancement of women 's opportunities 
by continuing to promote women 's participation in any economic activities in priorit y sectors such 
as agriculture, tourism and manufacturing.  
- Monetary and fiscal policy  
Question 7 
Paragraph 19: The representative of Timor -Leste described its ongoing economic reform 
and noted that  the Government expected to develop and implement an improved tax 
collection and administration system.  
• Does Timor -Leste have set timelines for the development and implementation of 
the improved tax collection and administration system?  
Answer : 
The Govern ment of Timor -Leste through its Tax Authority under the Ministry of Finance is working 
towards developing and implementing a tax administrative reform to improve the current tax 
collection system. As part of its effort, Timor -Leste has upgraded  its Standard Integrated 
Government Tax Administration System (SIGTAS) from Version 1  (introduced in 2010)  to Version 3 
(launched in November 2021) . Version 3  is an updated and more advanced system with some unique 
features such as:  
i) being web-based so that it  can be accessed by taxpayers and the TA at anytime from 
anywhere , whenever there is an internet connection;  
ii) having complete modules ranging from registration to collection, from audit to objection/  
appeals;  
iii) having easily -documented  audit trails ;  
iv) having a good security system;  
v) guarantee ing transparency through the employment of "letters and reminders " in which 
taxpayers would regularly be informed and updated on their tax payment due dates and 
any late payments involved;  
vi) having a module specificall y for the Value Added Tax (VAT) , which will be incorporated 
as planned when the Law on VAT is enacted and implemented.  
At the same time, in its effort to improve tax collection, the Government of Timor -Leste is in the 
process of drafting /revising  three main laws , which include : the Law on Value Added Tax, the Taxes 
and Duties Act (revision ), and the Tax Proceeding s Code.  
The timeline s for the development and implementation of the laws are as follows:  
i) VAT Law: 
Action to be taken  Target of completion  Status  
• Development of the draft Policy Paper for VAT Law  December 2015 Done 
• Seek opinions, comments and feedback from any third party 
on the revised law as well as public consultation and 
discussion with relevant private and public stakeholders  2021-2022 In progress  
• Discussion and approval by the Council of Ministers  2nd half of 2022  Pending  
• Discussion and approval by the National Parliament  1st half of 2023  Pending  
• Promulgation by the President  2nd half of 2023  Pending  
• Public awareness  1st half of 2024 Pending  
• Effective Implementation  2nd half of 2024  Pending  WT/ACC/TLS/ 20 
 
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  ii) Revised  Taxes and Duties Act :  
Action to be taken  Target of completion  Status  
• Revisit the revised draft law by the Ministry of Finance  1st half of 2022 In progress  
• Seek opinion s, comments and feedback from any third party 
on the revised law as well as public consultation and 
discussion with relevant private and public stakeholders  1st half of 2022 In progress  
• Discussion and approval by the Council of Ministers  2nd half of 2022  Pending  
• Discussion and approval by the National Parliament  1st half of 2023  Pending  
• Promulgation by the President  2nd half of 2023  Pending  
• Public awareness on the changes and introduction of new 
articles  2nd half of 2023  Pending  
• Effective Implementation  1st half of 2024  Pending  
iii) Tax Proceeding s Code:  
Actions to be taken  Target of completion  Status  
• Revisit the draft TPC by the internal Ministry of Finance 
team  2022 – 2023 Pending  
• Seek opinion s, comments and feedback from any third 
party on the revised law as well as public Consultation and 
discussion with relevant private and public stakeholders  2nd half of 2023  Pending  
• Discussion and approval by the Council of Ministers  1st half of 2024  Pending  
• Discussion and approval by the National Parliament  2nd half of 2024  Pending  
• Promulgation by the President  2nd half of 2024  Pending  
• Public awareness  1st half of 2025  Pending  
• Effective Implementation  2nd half of 202 5 Pending  
Question 8 
Paragraph 19: as stated in this paragraph , "the Government had modernized the 
legislation by revising the Customs Code in 2017 and was planning to revise the Taxes 
and Duties Act and to introduce the Value Added Tax (VAT), as the two main components 
of fiscal reform".  
• We hope  that Timor -Leste  may provide  the information  in relation  to the category  
or type of goods  and services  that will be subject  to VAT,  as well as the calculation  
of the VAT that will be imposed  on the imported  goods.  We hope  that the policies  
issued  by Timor -Leste  regarding  fiscal  reform  are in accordance  with GATT  Article  
III regarding  the national  treatment  principle . 
Answer:  
Under the ongoing discuss ion, Articles  4-7a and 15 of draft VAT Law articulate or foresee the goods 
and services subject to VAT . These Articles stipulate that  both supplies of goods and services within 
the national territory and imports of goods would be subject to the VAT. Exemptions would apply 
with respect to:  
a. supplies of goods and services and imports of goods carried out in the exclusive economic 
zone and the continental shelf, when the exclusive activity of the acquirer consists of 
exploration and extraction of petroleu m; 
b. supply of the following foods :  
• Meat and edible offal or bovine animals, swine, sheep, goats, or poultry, fresh or 
frozen;  
• Fresh or frozen fish;  
• Milk and cream, not concentrated or containing added sugar or other sweetening 
agents;  
• Eggs, in shell, fresh  or preserved;  
• Natural honey;  
• Vegetables, legumes, and horticultural products, fresh or frozen, including potatoes 
and cassavas;  
• Fresh, frozen, or dried fruit;  WT/ACC/TLS/ 20 
 
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  • Coffee beans and tea leaves;  
• Unprocessed grains, including wheat, corn, and rice;  
• Processed rice ; 
• Unprocessed sugar cane;  
• Unrefined fats and oil, such as olive oil, vegetable oil, or peanut oil.  
c. rendering of educational services, made by governmental or other public entities;  
d. rendering of medical  services, made by governmental and other public entities;  
e. supply of services exclusively for religious or social and charitable purposes, as well as the 
supply of goods connected with them, made by religious organizations, as well as by non -
profit entities duly recognized by the relevant government enti ty; 
f. supply of life insurance and reinsurance;  
g. financial intermediation transactions, as below, except for those in which a specific fee or 
consideration is charged for the service;  
• Granting of credit and management of credit guarantees;  
• Foreign currency e xchange and other transactions relating to foreign currency, except 
for the supply  of numismatic coins and banknotes;  
• Transactions relating to financial deposits and the management of accounts;  
• Transfer of debt instruments;  
• Management of investment funds.  
h. supply of gold for investment by duly registered financial and investment institutions;  
i. leasing of immovable property, specifically urban real estate, portions thereof, and land 
for construction;  
j. supply, other than the first supply, of a property right in immovable property, specifically 
urban real estate, portions thereof, and land for construction.  
While changes may be made in this Law which is still at the drafting stage, t he Government of 
Timor -Leste confirms its intention to share the  final draft  of the Law with the Working Party for 
review , so as to ensure its compliance  with Article III of the GATT 1994 and/or other WTO rules as 
applicable . 
- Foreign exchange and payment system  
Quest ion 9 
Paragraph 22: The representative of Timor -Leste states that the importation of cash into 
Timor -Leste and the exportation of cash out of Timor -Leste in an amount exceeding US$ 
20,000, or its equivalent in foreign currency, required the  CBTL's prior authorization.  
• Please describe the procedure to apply for the CBTL's authorization and timelines 
for the CBTL's  review and issuance of the authorization. Are these procedures 
publicly available?  
Answer : 
Application s for authorization to import and export cash equivalent to or in excess of US$ 20,000.00 
shall be made in writing to the Central Bank of Timor -Leste (C BTL) using the application form 
contained in Annex to CBTL Instruction No. 4/2017 of 28 March 2017 on "Importation and 
Exportation of Cash" (provided to the Working Party , legislation notice WT/ACC/TLS/9 ). Application 
forms can be obtained from the CBTL or  downloaded from http://www.bancocentral.tl/ . 
Application s must be signed by applicants  and indicate the amount of cash proposed for 
importation/exportation , description of the cash, the origin and intended use o f cash, the port and 
means of arrival/departure, the date of arrival/departure, plus any other information as may be 
required by the prescribed forms.  WT/ACC/TLS/ 20 
 
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  Each application to transport cash shall be accompanied by the following documentation:  
i. Applicant's identification documents ;  
ii. Signed declaration informing if  the applicant has ever been convicted or if there is  any 
proceedings are pending against them in connection with money laundering, terrorist 
financing or tax evasion or fraud , and whether the applicant is subject to any bankruptcy  or 
related proceedings as a debtor ; 
iii. Where applicable, a copy of a cash transport authorization issued by the competent 
authorities of the foreign country from which the cash is imported ;  
iv. A copy of the bank account or other document proving ownership of the cash ; 
v. A copy of the receipt of payments of the application processing fee.  
Applications for permits to transport curren cy shall be forwarded to:  
Central Bank of Timor -Leste  
Financial System Supervision Department  
Licensing and Regulation Division  
Avenida Xavier do Amaral, no. 9, Dili, Timor -Leste  
E-mail: dsflicensing@bancocentral.tl    
Application s must be submitted to the CBTL at least five working days before the proposed 
import/export date. Urgent a pplication s may be submitted  in less than five working days . Following 
fees must be paid to the CBTL when an application is submitted:  (i) for non -urgent applications : 
US$ 100; (ii) for urgent application s: US$ 300.  
The CBTL must take decision on authorization before the proposed da te. For urgent applications for 
authorizations for exportation of cash, decisions must be issued 48 hours prior to exportation, for 
import – 72 hours prior to importation. If CBTL decision is not issued, an application is deemed to 
be rejected.  
Authorizati ons granted by the CBTL  are valid for a single Cash Import or Export and have a maximum 
validity of 20 working days from the date of issuance.  
Pursuant to Article 3.3 of the Instruction, n o cash import or export to or from Timor -Leste in excess 
of US$ 150 ,000 is permitted except in the following cases  and subject to authorization by the CBTL :  
i. if import or export is carried out by a bank or financial institution duly licensed to operate in 
Timor -Leste;  
ii. in exceptional situations, where the restriction on t he import or export of cash in excess of 
US$ 150,000  is likely to cause serious injury, in particular: (i) situations of medical 
emergency; (ii) if duly justified cash imports or exports which, if carried out through banking 
or other institutions,  incur excessive or unreasonable costs and expenses for the 
importer/exporter  or cause significant damage .  
- State ownership and privatisation  
Question 10 
Paragraph 38: The repr esentative of Timor -Leste identified five state -owned enterprises 
that were in place in Timor -Leste.  
• Please explain to what extent private sector companies compete with the 
state -owned enterprises in the sectors provided in this paragraph.  
Answer : 
Currently , there are five SOEs established in Timor -Leste . These SOEs are required, through 
company law, to conduct business activities in their specific sectors,  namely : WT/ACC/TLS/ 20 
 
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  i. Radio and Television of Timor -Leste S oE ("RTTL, EP") is an SOE for radio and televisi on; 
ii. Timor Gas and Petroleum ("Timor Gap , EP") is an SOE for Oil and Gas Sector . In accordance 
with the petroleum laws and regulations, private and public compan ies can  compete to 
acquire a petroleum contract. In case a petroleum contract is granted to a private company, 
the State has the right to participate in the contact through its ' SOE (normally in  the form 
of a joint venture) with a participating interest of up to 20% . 
iii. National Aviation Agency of Timor -Leste ( "ANATL, EP") is Timor -Leste 's national aviation 
agency  in charge of exploring and developing airports and air navigation infra -structure , 
bestowed with financial administrative autonomy and its own patrimony .  
iv. Electricity of Timor -Leste ( "EDTL, EP") is a state-owned enterprise  in Electricity and Energy 
Sector.  The objective of the EDTL, E.P. is to create a set of restructuring measures in 
reforming the electricity sector aimed at expanding the supply of electricity and modernizing 
the National Electricity System.  This also includes implementing a management system with 
the goal of improving the public service provided by the EDTL, raising standard s and quality 
of power supply and its reliability at affordable prices, considering the feasibility and 
sustainability of its operation . 
v. Water of Timor -Leste ( "BTL, EP") is a state -owned  enterprise  recently created by the 
Government of Timor -Leste to promote greater efficiency and sustainability for the 
implementation of the Government's strategy in prov iding water and sanitation services to 
the public.  The company 's mission is to assist the Government in the implementation of 
national policies for water and sanitation trough the integrated and sustainable management 
of water and sanitation related servic es. 
The SOEs and  private sector companies  compete on a n equal level playing field . The State does not 
intervene or restrain competition in the above -listed sectors.  
Question 11 
Paragraph 39:  The representative of Timor -Leste informed that there were no 
Governmental or non -Governmental enterprises with exclusive rights or privileges in 
export or import operations.  
• Does the Government of Timor -Leste regulate the business activity of its SOEs 
impartially vis-à-vis any private se ctor competitors?  
• Are the public transfers provided to SOEs conditioned on local content or on the 
export of goods?  
Answer : 
The Government would like to confirm that Timor -Leste regulates SOEs and private companies  
equally in the context of doing business.  Taking into account Timor -Leste 's economi es of scale, at 
the present time  SOEs still heavily depend on public transfers through T imor-Leste 's annual state 
budget.  
Currently, the only SOE that specifies conditions on local content or on the export of goods under 
the State Budget is  Timor Gap EP as an Oil and Gas Company , which at the operational level is 
require d to fulfil its local content obligation and commitment provided under the petroleum 
regulations and agreements. Those obligations and commitme nts are related to the employment 
and training of Timorese Nationals,  the procure ment of Timor -Leste goods and services, and other 
Corporate Social Responsibility (CSR) programs to be carried out during petroleum operation s, and 
during the terms of the agr eements.  
- Pricing policy  
Question 12 
Paragraph 42: In respect of implementing price controls in specific sectors, the 
representative of Timor -Leste states that "the intervention by the Government was done WT/ACC/TLS/ 20 
 
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  only in exceptional circumstances and was applicable only to certain goods and services 
that were deemed vital for the subsistence of the country's most vulnerable families". 
Timor -Leste provides a list of exceptional circumstances in paragraph 45.  
• Please provide examples of Timor -Leste's interventions and explain if those 
interventions achieved set goals.  
• Please confirm that the price interventions were removed following the conclusion 
of the exceptional circumstances.  
Answer : 
Timor -Leste's price i nterventions were made when political, social and economic cris es arose , such 
as in 2006 -2007 when t here was price speculation in the market for basic goods such as rice, oil, 
salt, sugar, etc. During the 2007 crisis, the price of rice rose from US$ 0.34 to US$0.54 per Kg to a 
peak of US$0.85. After the Government intervention, the price returned to US$0.34 per Kg. 
Meanwhile, the price of 1Kg of sugar went up to US$1.50 per Kg during that period . Through the 
Government intervention, it returned to its normal price  of US$1.00 per Kg . Another instance of 
price intervention took place in 2008 -2009 during the global food price increase on essential 
commodities, when the price for  rice rose from US$0.40  to about US$1.30 per Kg. The Government 's 
intervention helped keep the price at around US$0.50 -0.60 per Kg. 
Two methods of market intervention appl ied:  
i. The Government enter into contracts with selected companies, groups of companies, or 
entrepreneurial as sociations to import rice and sell it to the consumers at an agreed price ;  
ii. The Government purchase d rice directly from overseas in a time of economic crisis and 
supply shortage. The rice was then sold to consumer s at a lower/subsidized price than those 
on the market. Consequently, sellers who previously sold at a higher price lowered the ir 
prices to compete with the rice sold by the Government.  
As explained above, th ese intervention s achieved their set goals as they brought back the prices of 
basic goods to their normal prices.  
All price interventions were altered/revoked at any moment once the exceptional circumstances 
were back to normal.  
Question 13 
Decree -Law No. 29/2011 appl ies to goods and services under the two -price regime in 
which sugar is covered (retail). In this regard, we would like to ask Timor -Leste about the 
procedure and implementation of monitored prices regime.  
Answer:  
The Ministry of Tourism, Commerce and Industry (MTCI) monitored the prices of goods and services 
listed Annex IV of the Decree -Law No. 29/2011 on "Fair Price" (provided to the Working Party, 
legislation notice WT/ACC/TLS/5): (i) sugar (retail); (ii) rice (wholesale and retail); (iii) corn (imp ort 
and marketing retail stages); (iv) chicken, rooster, hen meat and other offal (import and marketing 
retail stages); (v) cement (marketing retail stages); (vi) taxis and chauffeur driven hired cars; 
(vii) urban collective transports; (viii) interurban c ollective transports; (ix) cooking oils (wholesale 
and retail); (x) eggs in their natural state (retail); (xi) pasta; (xii) sand and stones for the building 
and constructions sector; (xiii) medication to be specified by the Ministry of Health.   
According t o Article 12.5 of Decree -Law No. 29/2011,  the procedure for the implementation of 
monitored prices regime is as follows : 
i. The subjection of goods or services to the monitored price regime is the responsibility of the 
Minister of Tourism, Commerce and Industry  (MTCI) , safeguarding the powers of other WT/ACC/TLS/ 20 
 
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  entities such as Ministry of Health ( Autonomous Service for Medicines and Health Equipment, 
EP) with regard to medicines.  
ii. Before implementation, the establishment of the price regime must be announced and 
published by MTCI order, which is to contain a summary of the foundations for the regime , 
its term, and the goods/services covered.  
iii. Monitored p rice regimes are in force until they are expressly revoked and/or replaced by a 
ministerial order . 
iv. The lists of  goods and services subject to the monitored price regime  may be updated, 
suspended or revoked by MTCI order.  
The monitored prices regime has not been implemented until today.  
IV. POLICES AFFECTING TRADE IN GOODS  
- Trading rights, registration requirements for engaging in importing and exporting  
Question 14 
Paragraph 77: It is stated that "for the importation of goods classified under the medium 
or higher risks, importers were required to obtain sectoral licenses based on business 
activities."  
• Please explain what kind of differences in import procedures, if any, there are for 
agricultural goods classified under medium risk compared to higher risk.  
Answer : 
The main differences  in importation procedures for agricultural goods  classified under medium risk 
and high risk are as follows:  
i) Agricultural p roducts classified under medium risk are products that c an pose a threat to 
human and animal health,  but the Government has developed measures to provide 
treatment to the disease.  Such products  are subject to procedures required by the competent 
Authorit y (National Directorate for Quarantine and Biosecurity)  elaborated in Decree -Law 
No. 21/2003 of 31 December 2003 on "Quarantine and Sanitary Control on Goods Imported 
and Exported" , Government De cree No. 1/2006 of 20 September 2006 on "Rules and 
Procedures to Implement Decree -Law No. 21/2003 on the Exportation and Importation of 
Goods subjects to Quarantine Control (inspection, isolation, observation, treatment, 
detention, prohibit from entering t he country, destroy and release) " and the draft Quarantine 
Requirements of Timor -Leste . 
ii) Agricultural  products classified under high risk are products that can  pose a threat to human 
and animal health, with no treatment or measures to address such diseases.  If an 
agricultural product is identified as high-risk, the competent Authority  (National Directorate 
for Quarantine and Biosecurity ) would automatically reject its importation . Exception s may 
apply in emergency cases, where decisions could be taken by the Prime Minister to allow for 
importation of such product s, in the best interest of the country's development.   
Question 15 
Paragraph 78: The representative of Timor -Leste e xplains that for medium and high -risk 
business activities, the authorization procedure for a sectoral licen ce could take up to one 
month.  
• Please explain if the sectoral licen ce has an expiration date.  
• Please explain if the procedure for a renewal of the se ctoral licen ce is the same as 
the procedure for the first -time application.  WT/ACC/TLS/ 20 
 
- 13 - 
 
  Answer : 
Each sectorial licen ce has its expiration date , depending on the legislative requirements with respect 
to specific economic activities performed by business es. For instance, a licence for travel and tourism 
agencies is valid for five years (Article 12 .2 of Decree -Law No. 19/2016  of 22 June  2016 on "Legal 
Regime for Licensing and Operation of Travel and Tourism Agencies "); for pharmac eutical  activities 
– for three  years (Article 4. 1 of Decree -Law No. 12/2004  of 17 May  2004 on "Pharmac eutical  
Activities ").  
The procedure for renewal of the sectoral licence is the same as for the first -time application :  
• If there are no changes in a registered company 's statute  (including its administrator, address, 
shares, company name, etc. ), an applicant only needs to fill out the application form, pay the 
registration fee and receive the renewed business licen ce certificate  from the Commercial 
Registration and Verification Ser vice (SERVE) . 
• In the case of any changes, an applicant is also  required to elaborat e on these changes  in the 
application form . In this case, along with the renewed business licence certificate, SERVE 
would also issue an "endorsement " mentioning changes mad e, and a renewed business 
registration certificate.  
Question 16 
Paragraph 80: The representative of Timor -Leste explains  that "at the time of importation, 
the Directorate of Customs Authority required all commercial importers/exporters to 
prove they had a Timor -Leste Taxpayer Identification Number (TIN)".  
• Please confirm that all commercial importers/exporters are required to have a 
Timor -Leste TIN at the time of exportation.  
Answer : 
Yes, TIN is a mandatory requirement of the ASYCUDA World System for every importer/exporter to 
register their documents. Without TIN, the system would automatically decline the trading process.  
Question 17 
Paragraph 82: The representative o f Timor -Leste explains  that "his Government was 
revising the Law on "Licensing of Economic Activities" to simplify the licensing procedure, 
to make it less burdensome and bureaucratic, for implementation by the end of 2021".  
• Please provide an update on Tim or-Leste's plan to simplify the licensing procedure.  
Answer:  
The process of revision and simplif ication of the licensing procedures , from a paper based to an 
electronic/ digital  process , is now at the final stage, after public consultations that involved both  
public  and private sectors. The draft Decree Law is in process of approval by the Council of Ministers , 
whereby it  will enter into force immediately following its approval , in the course of  2022. 
A. IMPORT REGULATIONS  
- Tariff quotas, tariff exemptions  
Question 18 
Paragraph 95: The representative of Timor -Leste states that "Timor -Leste did not apply 
any tariff quotas and did not intend to apply a ny quantitative limits on the volumes of 
imports". However, according to page 64 of the August 2020 Timor -Leste Economic WT/ACC/TLS/ 20 
 
- 14 - 
 
  Recovery Plan, Timor -Leste is considering "…a policy of import control (limits on 
quantities imported and increases in import tariffs) … in the medium -term of about 
5 years…"  
• Please provide an update on whether Timor -Leste intends to raise duties on 
agricultural imports or to implement quantitative restrictions for agricultural 
imports in the medium term.  
Answer : 
Timor -Leste plans to increase its applied  duties for agricultural  products in the medium term. 
The proposed bound duties for the importation of  these commodities have been listed in 
Timor -Leste 's Initial Market Access Offer on Goods  (document WT/ACC/SPEC/T LS/2). 
The implementation of this plan will be subject to the revision of the Taxes and Duties Act,  as per 
the Action Plan provided in the response to Question 7,  which will accommodate the Government 's 
effort to increase the applied duties for the importa tion of both agricultural and non -agricultural 
products, which would be in compliance  with the tariff concessions and commitments negotiated 
with Members .  
On the other hand, Timor -Leste confirms that it has no plans to  introduce any limits on quantities of 
import in the future.  
- Import licensing procedures  
Question 19 
Paragraph 106: This paragraph states that "the Directorate of Quarantine Services and 
Biosecurity under the Ministry of Agriculture and Fisheries dealt with the issues related 
to the monitoring of the implementation and compliance with laws and regulations , 
applicable to phyto - and zoo -sanitary control and quarantine, including issuance of import 
permits."  
• Please confirm the above -mentioned Directorate is the sole issuer of import 
permits for agricultural products.  
Answer : 
Yes, the National Directorate of Quarantine Services and Biosecurity under the Ministry of Agriculture 
and Fisheries is the sole issuer of import permits for agricultural products.  
Question 20 
Questionnaire on Import Licensing Procedures (WT/ACC/TLS/10): Timor -Leste states 
import licensing decisions for pharmaceutical products will occur within 90 days from the 
date of submission.  
• Will Timor -Leste work to make this non -automatic procedure consis tent with 
Article 3.5(f) of the Agreement on Import Licensing Procedures, which states in 
relevant part: "the period for processing applications shall, except when not 
possible for reasons outside the control of the Member, not be longer than 30 days 
if ap plications are considered as and when received, i.e. on a first -come 
first-served basis, and no longer than 60 days if all applications are considered 
simultaneously"?  
• In the latter case, is the period for processing applications to begin on the day 
following the closing date of the announced application period?  WT/ACC/TLS/ 20 
 
- 15 - 
 
  Answer : 
Yes, Timor -Leste w ill work to make this non -automatic procedure consistent with Article 3.5(f) of 
the Agreement on Import Licensing Procedures . The Government is yet to develop a timeline f or the 
implementation of this change.  
Timor -Leste also confirms that the period for processing applications  is to begin on the day following 
the closing date of the announced application period . 
Question 21 
Questionnaire on Import Licensing Procedures (WT/ACC/TLS/10): Timor -Leste says a 
business must register at SERVE in addition to applying for li censes.  
• What is the process for a business to register on SERVE?  
• Are there limitations for what businesses are eligible to register on SERVE?  
Answer : 
Business es are required to  apply for registration  at the Registry and Business Verification Service 
(SERVE) . There is no fee for such registration. Applicants need to fill out the form (can be 
downloaded from SERVE's official portal: www.serve.gov.tl ); provide a copy of ID Card or passport 
(for foreigners) , accompanied by a copy of the marriage certificate (for foreigners, if their marital 
status is not reflected in their passport) ; a business address  (main office and branches, if any) ; and, 
depending on their legal form, a company act (for companies) , inclu ding one from the origin country 
for foreign branches); as well as certified copies of prior authorizations to conduct business, where  
applicable. All these documents need to be translated to the official languages, Portuguese or Tetum, 
certified by notary  public in the country of origin and the Timor -Leste Embassy or Consulate, where 
applicable.  
All the registrations are done over the counter at SERVE, as one -stop-shop entity. The Government 
of Timor -Leste is now reviewing the process to allow businesses t o apply online, electronically. 
Business registration s are conducted by SERVE in one to five business days.  
Furthermore, Timor -Leste confirm s that there are no limitations for what businesses are eligible to 
register at SERVE.  
Question 22 
Questionnaire on Import Licensing Procedures (WT/ACC/TLS/10): For the importation of 
refrigerators and motor vehicles, can Timor -Leste provide more information about the 
period of licence validity? Like pharmaceuticals, do these licenses allow importation for a 
period of time or like SPS products, is it on a per shipment basis?  
Answer : 
Licenses for the importation of refrigerators and motor vehicles are obtained on a per shipment 
basis. They are valid for one year since issuance, for a specific shipment.   
Question 23 
Questionnaire on Import Licensing Procedures (WT/ACC/TLS/10):   
• Due to Timor -Leste's import licensing requirement, please identify which plant and 
plant products require an import permit.  
• With regard to the import permit applicat ion process, is the online application 
system available? Please elaborate the procedures, costs and processing times.  WT/ACC/TLS/ 20 
 
- 16 - 
 
  • Furthermore, please provide information on the validity period of an import permit. 
Is it required to apply per shipment? and are there an y quantitative import 
restrictions?  
• Please provide the name and contact information of the agency responsible for 
issuing the import permit for plant and plant products.  
Answer : 
All plants and plant products from all importing countries are required to obtain an import permit. 
This requirement is applied according to the IPPC and the domestic re gulations .  
Timor -Leste has not applied an online application system to facilitate import permit application process. 
However, Timor -Leste remains com mitted to establish and implement an online system once the draft 
Decree Laws on Plant and Plant Products, and Animal and Animal Products have been approved by the 
Council of Ministers. Subsequently, an online system could be fully operat ional within 4 to 5 years from 
the date of the enactment of the Laws.  
The validity period of an import permit is on a per shipment basis with a duration of one year.  
The name and contact information of the Authority responsible for issuing import permit for plant and 
plant products is as follows:  
Competent Authority:  National Directorate for Quarantine and Biosecurity –  
     Ministry of Agriculture and Fisheries  
Name:    Mr Venacio Oliveira  
Position:    National Director of Quarantine and Biosecurity  
Contact phone :   +670 77088163 / +670 77546391  
E-mail:    velicy2001@yahoo.com.au /  venaciooliveira60@gmail.com   
Question 24 
Questionnaire on Import Licensing Procedures (WT/ACC/TLS/10), Question 4: "Is the 
licensing intended to restrict the quantity or value of imports, and if not, what are its 
purposes? Have alternative methods of accomplishing the purposes been considered and  
if so which? Why have they not been adopted?" . Timor -Leste replied that the import 
prohibition of pharmaceutical products is intended to ensure the quality of products based 
on the WHO and FAO standards.  
• We understand that import licen ce is important for pharmaceutical products to 
ensure quality, safety, and efficacy. However, the quantity or value of imports shall 
not be restricted. Therefore, we would like to seek further clarification on import 
prohibitio ns or restrictions under pharmaceutical products that are intended to 
ensure the quality of products based on the WHO and FAO standards. Which  types 
of pharmaceutical products are prohibited or restricted and in what quantity? What 
are the reasons for such  prohibitions or restrictions of import?  
Answer : 
According to the Decree -Law No. 14/2004 of 26 May 2004 "On Pharmaceutical Activities ", all types 
of pharmaceutical products are allowed to be imported.  
However, due to the absence of specific law s regulat ing products/medicines that contain narcotics 
or psychotropic substances, only the Autonomous Service for Medicines and Health Equipment , EP, 
of the Ministry of Health is allowed to import  them. In certain circumstances, due to  the demand for 
medical purpose, the Ministry of Health has also authorised private clinics to import medicines that 
contain narcotics or psychotropic substances ( Ministerial Circular No. 3/2017  on "Import of Narcotics 
or Psychotropic Substances ", provided to the Working Party, legislation notice WT/ACC/TLS/17 ). WT/ACC/TLS/ 20 
 
- 17 - 
 
  - Customs valuation  
Question 25 
We would lik e to seek clarification on appeal, whether  it is available under related law 
and regulation, allowing imports or exports to challenge customs valuation determination 
issued by Timor -Leste's Customs Administration.  
Answer : 
As per Article 69 of the Customs Code, t here are two types of appeal on Customs decisions:  
(i) administrative appeal addressed to the Minister, which falls on customs decisions or on the final 
decision of the Director -General regarding a complaint;  (ii) in the course of a customs litigation 
process, the judicial appeal is made to the competent  court and falls on the final decision of the 
Director -General and that of the Minister.  
Pursuant to Article 70 .1(a) of the Customs Code , decisions or acts of customs on the customs value 
of the goods may be subject to appeal , in particular, decisions on customs duties and other charges 
on goods,  including all conclusions or determinations underlying tariff classification, country of  origin 
and customs value thereof . Any person who has requeste d a decision from the customs authorities 
and has not got a reply within 30 days may lodge an appeal.  
In accordance with Article 73 of the Customs Code, t he time limit for filing an administrative appeal 
is 30 days after notification of Customs decisions . Upon receipt of the administrative appeal, the 
competent authority shall review  and confirm, amend or annul  the contested decision (Article 74.3). 
If the contested decision is amended or modified, customs shall immediately reimburse or refund 
any customs duties, other charges or administrative penalties which have been levied in excess  
(Article 77.2) . 
Question 26 
Paragraph 109 and as a follow -up to Question 27, WT/ACC/TLS/16: Please further specify 
how Timor -Leste Customs proceeds w hen there is reason to doubt the truth or accuracy 
of the customs value of the imported merchandise.   
• What types of documents or evidence does Timor -Leste Customs request from the 
importer to support the declared value of the imported merchandise?  We note that 
the mere fact that a price is lower than prevailing market prices for identical goods 
should not be the sole basis for rejection for the purposes of Article 1.  
Answer : 
The Customs Authority complies with Article 1, but also exercises its right to quer y some import 
declarations when either  in doubt about the authenticity of  the invoice or when , based o n risk 
assessment , the declared value seems to be inaccurate. To resolve these matters , an importer is 
given the chance to demonstrate that the declared v alue is authentic and correct. The type of 
documents that Customs normally asks to be produced as Evidence of Money Price Paid or to be 
paid (EMPP) include, but are not limited to:  
- Contract of Sale between importer and exporter, or other documents that pro ve that there 
was an import transaction;  
- Correspondence between the importer and the exporter about the transaction in question;  
- International Bank transfer vouchers in Timor -Leste from the importer or receipts from the 
exporter for the amount said to be t he declared value (may or may not include Insurance 
and freight);  
- Other commercial documents related to the transaction where the value of the goods may 
be quoted . WT/ACC/TLS/ 20 
 
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  Question 27 
Paragraph 110 and as a follow -up to Question 28, WT/ACC/TLS/16: Does Timor -Leste 
apply the methods of customs valuation in hierarchical order to damaged goods in 
accordance with the CVA?  
Answer : 
Yes. While the Customs Code does contain  any special provisions on the valuation of lost or damaged 
goods , the customs valuation methods are applied in hierarchical order in accordance with Article 
98 of the Code which  applies to all imported goods, including damaged goods .  
Timor -Leste is ready to amend its legislation to fully reflect the requirements of the Cus toms 
Valuation Agreement.   
Question 28 
Paragraph 114 and as a follow -up to Question 30 (paragraph 1), WT/ACC/TLS/16: 
The answer provided was not responsive to this question.   
• Please clarify whether Decision 3.1 on the Treatment of Interest Charges in the 
Customs Value of Imported Goods applies regardless of whether the finance is 
provided by the seller, a bank or another natural or legal person.  
• Also, please clarify whether Decision 3.1 applies where the goods are valued under 
a method other than the transaction value.  
Answer : 
In accordance with Clause 1 of Schedule  5 of the Customs Code,  the Customs Authority abides by 
Decision 3.1 on the Treatment of Interest Charges in the Customs Value of Imported Goods , 
regardless of whether the finance is provided by the seller, a bank or another natural or legal person . 
The Decision applies where the goods are valued under a method other than the transaction value .  
Timor -Leste is ready to amend its legislation to fully reflect the requireme nts of the Decision.   
Question 29 
Paragraph 115 and as a follow -up to Question 30 (paragraph 2), WT/ACC/TLS/16 : 
The answer provided was not responsive to this question.   
• Please identify which provision(s) implements Articles 1.2(a) and 1.2(c) of the CVA 
concerning related parties.  
• If there is no provision currently in force, how and when does Timor -Leste intend 
to implement these Articles?  
Answer : 
Clause 1(2)  of Schedule I  of the Customs Code  defines that persons are deemed to be related if:  
a. They are employees and business managers of each other;  
b. They are legally recognized partners in a business;  
c. They are an employer and employee;  
d. He/she is a person who owns, controls or holds 5% or more of the voting rights or 
shares of both;  
e. One of them directly or indirectly controls the other;  
f. Both are directly or indirectly controlled by a third person;  
g. Together they directly or indirectly control a third person;  
h. They are members of t he same family (up to the fourth degree).  WT/ACC/TLS/ 20 
 
- 19 - 
 
  Persons are considered from the same family when:  
a. They have kinship relationship up to the fourth degree;  
b. They are married or maintain a civil union or de facto union with one another or if one 
is married, maintain s a civil union or de facto union with a person having a kinship 
relationship up to the fourth degree with the other;  
c. A person has been adopted as the child of another person or of a person with whom 
that person maintains a relationship of kinship up to th e third degree.  
Clauses 1 -3 of Schedule I of the Customs Code  contain  provisions that implement to Articles 1.2 (a) 
and 1.2 (c) of the C ustoms Valuation Agreement .  
Specifically, Clause 2(1)(d) defines that the customs value of the imported goods shall be their 
transaction value, if the buyer and seller of the goods are not related at the time the goods are sold 
for export or, if the buyer and seller are related at that time , but their relationship does not influence 
the price paid or payable for the goods;  and, the importer shows that the value of the transaction 
of the goods complies with the following requirements set forth in Clause 2(2)  regarding the sales 
between related persons : 
The importer must provide evidence that the transaction value of the goods subject to evaluation, 
taking into account any relevant factors including those factors and the differences that may be 
stipulated, significantly approximate the customs value of other goods exported at the same time, 
or in close proximity, to the value of the goods under evaluation, being:  
a. The transaction value of the identical or similar goods with respect to the sale of such  
goods for export to Timor -Leste between a seller and a buyer  which are not related at 
the time of sale;  
b. The deductible value of the identical or similar goods;  
c. The calculated value of identical or similar goods.  
As per Clause 2(3), i n any case, where Customs is of the opinion that the relationship between buyer 
and seller of any goods influences the price paid or payable for the goods, Customs shall inform the 
importer in writing if so requested, of the reasons that made Customs form such an opinion, giving 
the importer a reasonable chance to convince Customs that t he relationship did not influence the 
price.  
Question 30 
Paragraph 117 and as follow -up to Question 30 (paragraph 4), WT/ACC/TLS/16: 
The representative of Timor -Leste indicates that the Interpretative Notes of the Customs 
Valuation Agreemen t are all reflected in Schedule I of the Code.  However, as previously 
indicated, the Interpretative Notes do not appear to be implemented in their entirety. 
For example, Interpretative Note to Article 1, paragraph 2 concerning related party 
transactions is  not included in the legislation provided.  Article 14 of the CVA states that 
the Interpretative Notes at Annex I and the notes in Annexes II and III form an integral 
part of the CVA, and that the articles of the CVA are to be read and applied in conjunctio n 
with their respective notes.  
• Please explain how and when Timor -Leste intends to incorporate the 
Interpretative Notes into its legislation in their entirety.  
Answer : 
While the Interpretative Notes m ay not be fully reflected in the Customs Code,  Timor -Leste is ready 
to amend its legislation to reflect them.  The Customs Authority intends to propose a  draft Decree -
Law adopting the Interpretative Notes in full . WT/ACC/TLS/ 20 
 
- 20 - 
 
  - Application of internal taxes on imports  
Question 31 
Paragraph 128 : this paragraph  states that the 10% withholding tax for goods acquired by 
resident entities from non -resident suppliers was a discrimination that was being revised 
under the new Value Added Tax regime, si nce it violated the GATT's national treatment 
principle on non -discriminatory application of taxes. Paragraph 129 further states that 
the new VAT law aimed to create a level -playing field and reducing the cost of doing 
business.  
• We would like  to ask first, what is the exact nature of the discrimination. Second, 
whether there is also discrimination in the acquisition of services by resident 
entities or permanent establishments of foreign construction companies, and if 
discrimination does exist,  whether it too would be revised under the new VAT 
regime. Lastly, whether the revision would apply retroactively to companies that 
have already been levied.  
Answer:  
With regard s to the withholding tax , Timor -Leste would like to clarify that the  2% withholding tax is 
imposed on resident entities and non -resident entities with P.E. carrying out construction or building 
activities , as opposed to non -resident/foreign entities without  P.E. which are subject  to the 10% 
withholding tax:  
i. The 10% withholding tax is applied in accordance with Section s 49 and  57 of the Tax and 
Duties Act No. 08/2008,  as amended by Law No. 05/2019, which stipulate that  "every person 
making a payment of Timor -Leste source income to a non -resident person, other than a 
payment to which Section 52 or 53 applies, shall withhold tax, at the rate of 10%, from the 
gross amount of the payment ". The tax is only applicable to non -resident entities that derive 
their income from Timor -Leste source.  
ii. Both resident entities and non -resident entities with P.E. are subject to 2% withholding tax 
based on Section 53.1(a) and Schedule VIII for those carrying o ut constructi on or building 
activities . The same tax rate applicable for other activities outline d in Section 53 , including 
(i) construction consulting service, (ii) air and sea transport services, and (iii) mining or 
mining support services . However, a non -resident/fo reign entity must be subject to rigorous 
testing of the P.E. legal criteria in order to be determined and/or qualified as P.E. and 
consequently be treated equal  to a resident company.    
This discrimination matter will be addressed in the Tax es and Duties Act  which is being revised . 
The withholding tax will be replaced with the VAT which will be applied non -discriminatorily.  
Question 32 
Paragraphs 129 -131: The representative of Timor -Leste explains that "Timor -Leste would 
consid er replacing the sales tax, the withholding tax and the service tax with the VAT". 
The representative of Timor -Leste also describes a VAT system that is under the 
consideration and notes its plans to seek opinions from the public.  
• Please provide an update on the consultations with the public on the draft VAT 
Law.  
• Please provide a timeline for the submission of the draft VAT Law to the Council of 
Ministers and the National Parliament. Please also share the draft law for the 
review by the Working Party prior to accession to the WTO.  
Answer : 
The draft VAT Law is currently under its finalization . The Government plans to hold the consultation 
process once the initial draft is ready in the first half of 2022. Following this consultation process, WT/ACC/TLS/ 20 
 
- 21 - 
 
  the document will be submitted to the Council of Ministers within the second half of 2022 for 
discussion, a s well as to the National Parliament within the first half of 2023 , for approval.  
Timor -Leste would like to confirm that the draft Law will be circulated to the Working Party prior to 
Timor -Leste 's accession to the WTO.  
- Anti-dumping regime  
Question 33 
Paragraphs 132 – 133: According to paragraph 132, Timor -Leste does not have an 
anti-dumping, countervailing duty, or safeguard regime.  In paragraph 133, the 
representative of Timor -Leste added that "any policy decisions" on trade remedy 
proceedings could be taken once the relevant legislation was enacted.   
• Since the last Working Party Meeting on Timor -Leste 's accession to the WTO, has 
there been progress made in the development of legislation establishing  and 
implementing a trade remedies regime?   
• Please provide a timeline for the anticipated development of trade remedy 
legislation.  
Answer : 
The Ministry of Tourism, Commerce and Industry  (MTCI)  with technical assistance from the ADB has 
engaged  a legal expert  to develop and provide policy options for legal and institutional arrangement s 
and the capacity required and to propose a regulatory framework for the trade remedies regime.   
The consultati on and drafting process should be finalized in the 4th quarter of 2022.  
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS SANITARY AND 
PHYTOSANITARY MEASURES  
- Technical barriers to trade, standards and certifications  
Question 34  
TBT Action Plan (WT/ACC/TLS/11), u nder capacity building point 3, we suggest adding 
IEC (International Electrotechnical Commission).  
Answer : 
Taking into account the necessity to adopt international rules and regulations in relation with 
electrotechnical matters, Timor -Leste took note of Member 's recommendation and confirm t he 
inclusion of  IEC under the Capacity Building point 3.  
Question 35 
TBT Action Plan (WT/ACC/TLS/11), u nder capacity building, Timor -Leste may wish to 
consider #6 to approach specialist regional bodies associated with Standardisation and 
Accreditation. For example:  
• APAC – Asia Pacific Accreditation Cooperation  
• APMP – Asia Pacific Metrology Programme  
• APLMF – Asia Pacific Legal Metrology Forum  
• PASC – Pacific Area Standards Congress  WT/ACC/TLS/ 20 
 
- 22 - 
 
  Answer : 
Timor -Leste took note of the Member 's recommendation to approach specialist regional bodies 
associated with Standardisation and Accreditation. At the early stage of our development, through 
the recent establishment of the Quality Institute of Timor -Leste (QITL), Timor -Leste puts a high 
priori ty on obtaining highly qualified technical expertise in the area to leverage their support to 
streamline the role of the Institute to facilitate trade.  
Question 36 
TBT Action Plan (WT/ACC/TLS/11): what does Timor -Leste mean by the establish ment of 
TBT inquiry points? Is it intended that there will be more than one enquiry point? It would 
be helpful to understand what that might look like and why more than one is necessary 
(if that is the intention)?  
Answer : 
Regarding  the establishment of the TBT enquiry point, Timor -Leste is still in the early stage s of 
develop ing a clear structure and policies of the Quality Institute of Timor -Leste (QITL) in accordance 
with its by -law. At this point, the Government plans to only establish one main enquiry point working 
under the QITL. The Government plans to appoint a Technical Focal Point who will act as the TBT 
enquiry point , responsible for matters related to, inter alia : standardizat ion, accreditation and 
metrology , by the 2nd half of 2022 , and to  establish a TBT Enquiry Point in 2023.  
Taking this opportunity, Timor -Leste would be open to further recommendations and necessary 
assistance from Members  in providing technical expertise t o accelerate this establishment in 
accordance with WTO rules and principles.  
- Sanitary and phytosanitary measures  
Question 37 
Paragraph 151, Timor -Leste states that challenges including the provision of basic 
infrastructure to establish a national laboratory prevent the Government from fully 
complying with IPPC requirements.  
• Please identify and provide greater details on the cha llenges and/or resource 
constraints preventing Timor -Leste from achieving full compliance with IPPC 
requirements.  
• Please provide a possible timeline on when it expects to achieve full compliance 
with IPPC requirements.  
Answer : 
Timor -Leste is committed to become a member of the IPPC to better facilitate the import and export 
procedures. However, challenges still exist to accelerate Timor -Leste 's full compliance with the IPPC 
requirements. These include:  
- Lack of basic facilities, including a laboratory  and q uarantine installation facilities at the entry 
point (for treatment, isolation during the incubation period, etc). At the moment, the 
approval of imported products is based on the import permit certificates without any analysis 
conducted on imported products.  
- Lack of qualified human resources in the specific areas, in particular to conduct tests on 
imported products.  
- Permanent Funds to operate the work of the quarantine facilities.  WT/ACC/TLS/ 20 
 
- 23 - 
 
  The timeline for achiev ing full compliance  is as follows : 
As elaborated in Timor -Leste 's SPS Action Plan, Timor -Leste remains committed to establish basic 
infrastructures to be in full compliance with the IPPC requirements. In accordance with the Action 
Plan, Timor -Leste is committ ed to establish a national laboratory for animal and plants diagnostic 
and inspection in  four to five years  starting from the enactment of the Decree -Laws on Animal and 
Plant Health (expected in the course of 2022) . While Timor -Leste is yet to become a mem ber of the 
IPPC, Timor -Leste maintains its commitment to continue implement its rules and regulations in line 
with the ISPM requirements as elaborated in the  draft Quarantine Requirements of Timor -Leste 
(provided to the Working Party, legislation notice WT/ACC/TLS/15 ), while also taking into account 
of Timor -Leste 's current  status as an LDC . At the same time, Timor -Leste would like to seek tailored 
support and  assistance from Members to be in full compli ance with the ISPM requirements and 
become a member of the IPPC . 
Question 38 
Paragraphs 161 -162: Timor -Leste states the weight requirements for imports of fresh  
meat were "merely for statistical purposes to measure the annual consumption capacity 
of meat in the country. This measure would be revised as soon as appropriate facilities 
had been in place in conformity with the international standards." In paragraph 1 62, 
Timor -Leste qualified this statement by asserting that "such measure will be revised as 
soon as appropriate facilities have been in place to be in conformity with the international 
standards."  
• Please provide an update and/or provide a possible timeline  addressing the length 
of time it intends to use weight requirements for imports of fresh meat. When does 
Timor -Leste anticipate revising the current measure?  
Answer : 
The length of time Timor -Leste intends to use weight requirements will be subject to the  
implementation of the SPS Decree -Laws that are currently in the pipeline for approval at the Council 
of Ministers. As elaborated in the SPS Action Plan (document WT/ACC/TLS/12) , once appropriate 
facilities are in place to replace such requirement, Timor -Leste will be  committed to remove such 
weight requirements for imports of fresh meat.  At this point, the Government of Timor -Leste is yet 
to anticipate revising the current measure. Having said that, Timor -Leste remains committed to 
remove such a requirement once appropriate infrastructure and facilities are in place to replace such 
measure.  
Question 39 
Paragraph 163: Timor -Leste states that the Ministry of Agriculture and Fisheries and the 
Ministry of Finance could issue a joint mi nisterial statute defining service fees connected 
to the granting of import permits, issuance of certificates, or any other fees for services. 
Should any fees be charged in the future, the fees would be based on a recovery of the 
actual costs, while the Go vernment would ensure that the methodology to calculate these 
costs was publicly available or provided upon request. Such methodology would be 
applied in a transparent manner. Besides, since the whole quarantine and sanitary control 
framework was under rev iew, the Government of Timor -Leste was revisiting the issue of 
service fees and costs in the context of such review.  
• Could Timor Leste explain the methodology used to calculate the costing of the 
service fees?  
Answer : 
Timor -Leste would like to confirm that  currently there are no fees associated  with the granting of 
import permits, issuance of certificates, or any other fees for services. Hence, Timor -Leste is yet to 
develop any related methodology to calculate the costing of the service fees. Should any fees be 
charged in the future, Timor -Leste would be committed to develop such methodology in a WT/ACC/TLS/ 20 
 
- 24 - 
 
  transparent manner , such that this methodol ogy would be in line with Article VIII of the GATT  1994 
which regulates fees and charges for services connected with importation and exportation . 
Question 40 
Paragraph 164: The representative of Timor -Leste states that "each import required  an 
import risk analysis to assess the risk posed and to establish the need for import 
conditions to manage the risk."  
• Please describe Timor -Leste's import risk analysis process, level of information 
evaluated, and when such an analysis is required to tak e place. Please explain the 
scientific basis for requiring a risk analysis on each import.  
• Will Timor -Leste take into consideration exporting Members' equivalent sanitary 
or phytosanitary measures? If so, how will equivalent measures be taken into 
consideration when making a determination ? 
Answer : 
Timor -Leste 's risk analysis process is applied i n accordance with the  rules applied by the OIE  and 
the IPPC. At the same time, due to the existing lack of infrastructure and adequate human resource 
capacity, the procedures are also adjusted to the national  conditions , whereby, the scientific 
procedure s, includ ing pre-inspection measures of products , are defined together with an exporting 
country . Prior to develop ing an import risk analysis, both countries are required to sign an agreement 
to safeguard both parties ' concerns in conducting a diagnostic  risk assessment measure.   
Timor -Leste  confirms its commitment to take into consideration exporting Members ' equivalent 
sanitary or phytosanitary measures , in accordance with the international measures set by the OIE 
and the IPPC. Having said that , Timor -Leste requests for Members ' understanding of Timor -Leste 's 
current  lack of existing  infrastructure and adequate human resource s in the related field to be in full 
compliance with t he SPS measures, taking into account of Timor -Leste 's status  as an LDC.  
Question 41 
Paragraph 179: The representative of Timor -Leste stated that it would publish its lists of 
regulated pests and notifiable diseases as soon as appropriate facilities are in place.  
• Please clarify the state of its appropriate facilities and identify the nece ssary 
assistance it seeks to establish these facilities.  
• Please provide a possible timeline on when Timor -Leste expects to publish its lists 
of regulated pests and notifiable diseases.  
Answer : 
The facilities that are already in place include:  
1. Main Quarantine office ; 
2. Basic quarantine installations (without a laboratory) ; and 
3. Two v eterinary Doctors with the support of animal husbandry and technical livestock 
profession als. 
The Government of Timor -Leste recognizes that gaps still exist in terms of its lack of other basic 
infrastructure and adequate human resources . To improve public service delivery  in the se specific 
areas, the following is required : 
1. the e stablishment of a quarantine laboratory  at the entry point across the national 
borders ; 
2. more veterinary doctors to be allocated in the main laboratory and in different quarantine 
entry point s in the country ; WT/ACC/TLS/ 20 
 
- 25 - 
 
  3. more plant protection specialists to be allocated in the main laboratory and in different 
quarantine entry points in the country;  
4. the establishment of a fully regulated online portal  to facilitate the quarantine facilities; 
and 
5. more highly technical trainings to the quarantine staff, in particular to the quarantine 
inspectors at the quarantine entry points.  
Regarding  the publication of list s of regulated pests and notifiable diseases, Timor -Leste would like 
to confirm that such timeline will be established as soon as  appropriate facilities are in place to 
establish an online platform  to streamline the Quarant ine Authorities work , couple d with well-trained 
human resource s to operate such online platform.  
Question 42 
Follow -up question to Questions 33 and 50 , WT/ACC/TLS/16 : Please describe how the 
identified SPS enquiry points that are associated with Veterinary Authority (VA) and the 
National Plant Protection Officer (NPPO) will coordinate on SPS measures which may not 
be associated with animal and plant products, such as food safety measures.  
Answer : 
As for the SPS measures that may no t be associated with animal and plant products, such as food 
safety measures, the designated inquiry points, the Veterinary Authority (VA) and the National Plant 
Protection Officer (NPPO) , will coordinate with the Ministry of Health , the Authority for Insp ection 
and Supervision of Economic Activity  and Food Safety (AIFAESA) and the Quality Institute of Timor -
Leste  (QITL)  to facilitate their input on the subject matter . 
Question 43 
SPS Action Plan ( WT/ACC/TLS/12 ) and SPS Checklist (WT/ACC/TLS/13)  identify that the  
Government of Timor -Leste will publish measures to meet SPS transparency obligations  
under Annex B.5. Please describe the timeframe for establishing these measures.  
Answer : 
The Government of Timor -Leste has established its SPS measures with respect to  animal s and animal 
products in line with the OIE requirements , while the timeframe for measures in relation to plant 
and plant products  is yet to be established following its membership to the IP PC. The Government 
confirms that these measures will be in conformity with the SPS  Agreement, including  transparency 
obligations  under Annex B.5 to it, as identified in the SPS Action Plan and SPS Checklist.  
As for  the transparency obligation of food sanit ation measures (not including animal health and 
phytosanitary measures), the Quality Institute of Timor -Leste (QITL)  is currently working on 
establishing technical standards for composite foods and beverages,  a conformity assessment 
system as well as metrology together with UNIDO. The project is scheduled to launch in early 2022 
for a duration of three to four years  (by the end of 202 5 or early 2026). These measures will also 
be in compliance with the SPS Agreem ent. 
Question 44 
Please describe Timor -Leste's process in reaching a scientific justification when it 
determines a need to enforce a higher level of sanitary or phytosanitary protection or 
when an international standard, guideline or recomm endation does not exist.  
Answer : 
Timor -Leste confirms on the application of its sanitary and phytosanitary measures to be based on 
science and should be applied only to the extent necessary to protect human, animal or plant life or WT/ACC/TLS/ 20 
 
- 26 - 
 
  health, such that they should not arbitrarily discriminate between countries in alignment with Article s 
3.3, 5.2 and Note 2 of the SPS Agreement .  
Question 45 
SPS Checklist (WT/ACC/TLS/13) , point 1, we note that the IPPC is the only relevant IO in 
this space and is the "sister" organization to Codex and the OIE. Thus, we suggest the 
following edits:  
"The Government of Timor -Leste is committed to the introduction of new standards, 
animal he alth regulations and food safety regulations in conformity with the SPS 
Agreement principles, as well as to the adoption of SPS -related laws in conformity 
with the Agreement and based on the international standards, guidelines and 
recommendations developed  by the Codex Alimentarius Commission,  the 
International Office of Epizootics World Animal Health Organization (OIE) , and the 
relevant international and regional organizations operating within the framework of  
the International Plant Protection Convention (IPPC).   
Answer : 
Timor -Leste confirms the abovementioned edits . 
Question 46 
SPS Checklist (WT/ACC/TLS/13) , point 2, Timor -Leste provided contact for CVO as its 
"enquiry point". We note that usually such high -ranking individuals are not used for 
enquiry points, taking into account that this person is expected to field routine questions.  
Also, please identify the designated contact for food safety enquiries.  
Answer : 
Within Timor -Leste 's regulation , the provided contact for CVO as its "enquiry point " shall be a high-
ranking  position, i .e. Director level . The CVO is also the designated contact  to coordinate with the 
relevant line Ministries on food safety enquiries . 
Question 47 
SPS Checklist ( WT/ACC/TLS/13 ), point 8, we suggest the following edits:  
"The Government of Timor -Leste will be committed to using and, as needed , 
developing scientific evidence, as well as  conducting risk assessments to ensure that 
measures are based on scien ce and applied only to the extent necessary to protect 
human, animal or plant life or  health" to avoid the development of all evidence if not 
necessary.  
Answer : 
Timor -Leste confirms on the abovementioned edits proposed by a Member , as underlined.  
Question 48 
Under Decree -Law No. 26/2012 of 4 July 2014 "Framework Law on Environment" 
specifies the objectives concerning environmental protection and sustainable 
development of the economy. In this regard, we would like to  ask Timor -Leste that what 
is the policy implementation that Timor -Leste is using in order to achieve environmental 
protection and sustainable development of the economy. Apart from that, does 
Timor -Leste take or apply Bio -Circular -Green Economy policy to achieve the 
above -mentioned objectives? If yes, how?  WT/ACC/TLS/ 20 
 
- 27 - 
 
  Answer : 
Timor -Leste, through its National Constitution, has established and committed to a set of 
fundamental rights for Timorese citizens that must, and will, continue to be assured and protected. 
Prote cting Timorese rights to 'a humane, healthy, and ecologically balanced environment ' is a central 
and foundational objective of the National Constitution as well as the cornerstone  of Timor -Leste 's 
response to the impacts and implications of anthropogenic climate change.  
The strateg y that Timor -Leste is using in order to achieve environmental protection and sustainable 
development related to Bio -circular Green Economy  policy  are: 
• Waste management;  
• Preserving b iodiversity;  
• Climate change and ad aptation (inundation, erosion, floods, landslides, and drought)  
• Air pollution control;  
• Wastewater treatment;  
• Noise pollution control;  
• Environmental impact assessment;  
• Renewable energy programs;  
• Energy efficient products;  
• Marine Protected Areas;  
• Marine and  coastal resources management;  
• Ozone depletion layer;  
• Education and public awareness.  
The introduction of a 'Nature -Positive ' integrated approach to Timor -Leste 's adaptation, mitigation, 
and socio -economic development objectives is focused on enhancing the  integrity, carbon 
sequestration potential, holistic landscape management and  resilience of the nation 's environment 
and natural capital. This pillar and vision support the diversification and growth of Timor -Leste 's 
non-oil economy – noting opportunities and commitment to engage and benefit from carbon 
markets, nature -based solutions, the expansion of green tourism, and the growth and diversification 
of sustainable agriculture practices. This contribution is inclusive of commitments to improve and 
expand e xisting terrestrial and marine protected areas and the management of conservation zones.  
The blue economy offers potential for Timor -Leste, in terms of food security, nutritional status, job 
opportunity, income generation/diversification and poverty reduction. This can be achieved through 
prioritizing ecosystem integrity over economic use, and  the systemic approach of engaging all 
components and players in a coherent manner. For example, salt distillation, brackish aquaculture, 
fish post -harvesting, mangrove rehabilitation and seaweed farming are all activities that are 
pertinent and supplement  each other as source s of income and food security on coastal areas.  
Question 49 
Please clarify the definition of a genetically modified organism in Article 1, paragraph (l) 
of the Legal Framework for the Protection and Conservation of Biodiversity. Specifically, 
how does a non -living organism have the ability to replicate its genetic material? Likewise, 
please clarify "novel". We note there are several procedures that can provide a "novel" 
combination "that does not occu r through natural recombination" that would not fall 
under these regulations.  
Answer : 
Article  1, paragraph (l) of Decree Law No. 6/2020 of 6 February 2020 on  "Legal Framework for the 
Protection and Conservation of Biodiversity " states that a non-living org anism has the ability to 
replicate its genetic material s. The event during  which a non-living organism replicates its genetic 
material may occur during radioactive chemical processes between a non-living organism and a 
biological element, which may replicate novel genetic material, which often does not occur through 
natural recombination . WT/ACC/TLS/ 20 
 
- 28 - 
 
  Question 50 
Please provide a copy of the special regulations governing the import and use of 
genetically modified organisms. If this regulation is not yet available, is there a timeline 
for when it will be finalized, or a description of w hat agencies will be involved in its 
formulation?  
Answer : 
Timor -Leste would like to confirm that currently the Government has no plan  to develop a special 
regulation governing the import and use of genetically modified organisms . 
- Government procurement  
Question 51 
Paragraph 200: The representative of Timor -Leste explains that "the public procurement 
system was subject to an evaluation conducted with the support of the World Bank (WB) 
and the Asian De velopment Bank (ADB)" and that "The report resulting from this 
assessment would be submitted to the Government, with the pertinent 
recommendations".  
• Please provide an update regarding the assessment of Timor -Leste's public 
procurement system.   
• Please provi de an update on the legal procedure started to establish a new regime 
for public procurement.  
Answer : 
The objective of this evaluation  using the 2018 Methodology for Assessment to Procurement Systems 
(MAPS)  is to support the Government of Timor -Leste in impro ving the performance of the public 
procurement system and yield ing optimal results in the use of public funds and delivery of servi ces 
to the citizens while maintaining high standards of integrity.  There are two main deliverables which 
are yet to be  completed:  
i. Final MAPS Assessment Report , which will be prepared upon  completing the planned 
assessment activities . Its findings and recommendations will be submitted to the 
Government of Timor -Leste ; and  
ii. Draft MAPS strategic Action Plan for Pillar I , which  will be developed based on the assessment 
findings and recommendations and the priority reform actions to support the efforts  of the 
Government of Timor -Leste  to improve the quality and performance of the country's public 
procurement system . 
The activity , which  commenced in March 2021, is now expected to be completed by the end of 2022.  
The Ministry of Finance is developing  a new regime on the Public Procurement System. 
The respective draft Decree -Law is currently presented for  inputs and suggestions from line 
ministries , to be forwarded for consideration  at the meeting of Council of Ministries , later this year . 
The draft Decree -Law will regulate public procurement procedures, establish the legal regime for 
public contract and the administrative offences for public contract.  It aims to guarantee the 
protection of public interest, the economy, efficiency and effectiven ess of public expenditure and 
equality and competition between interested persons  (individual s or legal person s) in contracting 
with the State or with the services and entities of the administrative public sector.  WT/ACC/TLS/ 20 
 
- 29 - 
 
  - Agricultural policies  
Question 52 
We thank Timor -Leste for providing information on its domestic support and export 
subsidies in document WT/ACC/SPEC/TLS/1.  
• Please provide an explanation as to why "Export promotion and advisory services: 
Basel ine study on the identification of local products that have potential for export 
market and to attract private investments in agriculture sector" is listed under 
Research 2(a) in Table DS:1 and is not listed under 2(f) "Marketing and 
promotional services".   
• Please confirm that this activity refers to research that does not involve export 
promotion and marketing activities.  
Answer : 
The baseline study carried out by TradeInvest Timor -Leste  in 2017  was part of the research activity 
to promote export potential focusing on the agriculture sector in Timor -Leste.  
We would like to c onfirm  that the activity should be listed under "marketing and promotional 
services" as the output of this activity is the development of digital mapping for marketing and 
export promotion that can be accessed through TradeInvest 's official main page 
(www.tradeinvest.tl).  
Question 53 
On the Supporting table DS:1 , could Timor -Leste please provide detailed information on 
their "Contingency Fund for Purchase of Rice"  notified under paragraph 3 (public 
stockholding program for food security purposes) as presented in its recent DS:1 
notification (WT/ACC/SPEC/TLS/1)? In  particular, what are the predetermined targets to 
fulfil Timor -Leste's food security objective?  
Answer : 
The National Logistic Cent re (NLC) , which  is an autonomous government agency established in 
accordance with , is responsible for safeguard ing national food stock for food security  purposes .  
The b udget allocation for rice purchase in 2017-2020 was as follows:  
 
2016  2017  2018  2019  2020  
Rice Import  
- Amount , tonnes  
1,900  - - 30,000  
- Budget , US$   
979,051.00  - - 15,000,000.00  
Purchase from Local Producers  
- Amount , tonnes 909,547.13  522,548  - 863,085  1,200 
- Budget, US$  363,818.85  209,019.20  - 345,234.00  480,000.00  
The allocated funds are important to safeguard the continuity of national reserve s during an  
emergency period  and to prevent,  inter alia : 
1. the minimum yield of production of local rice  annually resulting from famine and unproductive 
land; 
2. a lack of rice supply emerging from a national and a global calamity ; and  
3. low supply of rice resulting from climate change, particularly in remote areas.  WT/ACC/TLS/ 20 
 
- 30 - 
 
  The Government of Timor -Leste, through the NLC, has set its food security objective by securing 
food stock of rice of around 140,000  metric ton nes per annum in accordance with annual domestic 
rice consumption . Rice  is purchased at two main levels, in the national territory and from abroad  
through government -to-government  cooperation . 
Question 54 
We note the purchases are  made at market prices. Could Timor -Leste please describe how 
purchases are carried out and what are the specific conditions enabling such purchases? 
Could  Timor -Leste also please describe how stocks are later disposed of, in particular 
under which market  conditions?  
Answer : 
In accordance with the Decree -Law No. 26/2014 of 10 September  2014, the Coordinating  Minister 
for Economic Affairs  (MCAE) , the Minister overseeing the National Logistic Center  agency  (NLC) , the 
Ministry of Agriculture  and Fisheries  (MAF) , the Ministry of Tourism, Commerce and Industry  (MTCI) , 
and the Ministry of Finance develop a joint Order to be  signed by these Ministers , based on the  
diagnostic study undertaken by the technical working group composed of these Minist ries, w ith 
recommend ations on  the specific conditions and prices in accordance with the market trend and the 
yield of rice production in the  country.  
The Government 's market intervention s are made  through the National Logistic Center (NLC) .  
The NLC ensures that the rice stock is available throughout the year and is well preserved at the 
available Government warehouse to secure food stock  during any national emergency  caused by 
flooding, landslide,  famine and other natural and human -cause d emergencies. The NLC also works 
in collaboration with private rice suppliers to find out the availability of rice supply in the country 
during an emergency period.  
Rice is purchased both in the national territory  and from abroad . The Government 's priority is to 
purchase the available rice produced in the national territory . At the same time, recognizing the high 
demand of local rice purchased at the market, the Government  also purchases imported  rice. 
Locally produced rice is purchased in husks directly at the farm gate with the following procedures:  
1. The NLC works in collaboration with the Ministry of Agriculture and Fisheries to identify the 
existing rice paddy for purchase;  
2. The responsible Government authorities conduct consultations with  local leaders and farmers 
on the purchasing process and the identified price;  
3. Rice purchased should have a water content of around 14%  as a general standard requirement 
for rice qualit y; 
4. Payment s are made in accordanc e with the government procurement process.  
Recognizing the lack of available local rice production against the existing local demand, the 
Government also imports rice from abroad according to the following procedures:  
1. The NLC is required to allocate  budget  for rice purchase annually and at the same time, the 
agency is required to comply with the government procurement process;  
2. The Government , represented by the MCAE , signs an MoU with an identified exporting country 
to agree on the amount and price for imported rice. Viet Nam has been Timor -Leste 's main rice 
export ing partner;  
3. The requirement s for rice to be purchased from abroad  are as follows : WT/ACC/TLS/ 20 
 
- 31 - 
 
   Parameter  White Rice 15%  
1.  Broken (% Max)  0 
2.  Foreign Matters (% Max)  0.20 
3.  Damaged Kernels (% Max)  0.25 
4.  Yellow Kernels (% Max)  0.20 
5.  Chalky Kernels (% Max)  3.00 
6.  Red and Red Streaked Kernels (% Max)  1.25 
7.  Glutinous Kernels (% Max)  1.50 
8.  Paddy Per Kg (Grain)  15.00  
9.  Moisture (% Max)  14.00  
10.  Newest Crop  actual year  
11.  Mil Degree  well-milled 
Rice distribution procedures:  
1. Once the rice stock is ready to be distribute d with an identified amount, the NLC develop s an 
Action Plan o n distribution by identifying rice distribution by humanitarian support, working 
alongside the Ministry of Social Solidarity and Inclusion, the Ministry of State Administration, the 
Secretary of State for Civil Protection,  and other line governments to identify vulnerable groups 
and provide such support;  
2. At the same time, the NLC has the mandate to safeguard and maintain a fair price of rice at the 
market value . This intervention takes place periodically, on a quarterly basi s, where the 
maximum of 1,500 ton nes of rice are distributed through two main processes, including directly 
selling rice to consumers or to rice suppliers to prevent price fluctuations of rice at the market. 
The price of rice is sold at the market price wh ich need s a prior authorization of the MCAE as  the 
Minister overseeing the NLC.  
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIME  
Question 55 
We look forward, in due course, to opportu nities to review and comment on Timor -Leste's 
National IP Strategy and legislative proposals to establish laws and other measures that 
aim to provide effective protection and enforcement for intellectual property rights, which 
will help foster innovation a nd creativity.  
Answer : 
Timor -Leste confirms that it will provide its National IP Strategy and draft IP legislation for review 
by the Working Party once they are developed in line with the TRIPS Action Plan .  
Specifically, t he Ministry of Tourism, Commerce and Industry  (MTCI)  in collaboration the Agency for  
Technology , Information and Communication,  the State Secretary of Arts and Culture and the 
Ministry of Justice , with the technical assistance from USAID , are currently drafting the Industrial 
Property Code which  will include  provisions on  trademarks, patents, utility models, industrial 
designs, and trade secrets . This draft Code will be submitted to the Working Party  for Members'  
comments and review once the final version i s available  in the first half of 2022.   
Provisions  on copyrights and other related rights, geographical indications and treatment  of plant 
varieties are yet to be developed separately.  
As for the establishment of the National IP Office, the MTCI is currently developing its regulation and 
searching an expert  to recruit, in the second quarter 2022, to be the focal point for its establishment.  
As the development of the IP -related instituti ons and framework  is still at the earliest stag e, Timor -
Leste still requires  continuous  assistance from donor partners , as emphasize d in Article 67 of the 
TRIPS . Since the implementation of th e IP is very knowledge intensive and technically complex, the 
MTCI is also discussing with donor partners (such as WIPO  and several WTO Members)  the technical 
assistance , under the MCAE  coordination.  WT/ACC/TLS/ 20 
 
- 32 - 
 
  VI. POLICIES AFFECTING TRADE IN SERVICES  
Question 56 
Paragraph 246: The representative of Timor -Leste explains that commercial activities 
including wholesaling and retailing as well as all import and export activities are 
prohibited to foreign ers without special authorization.  
• Please explain what is the process of seeking authorization to carry out those 
activities.  
Answer : 
Decree -Law No. 34/2017  of 27 September  2017 on " Licensing of Economic Activities " contains no 
Article that prohibit foreigners from perform ing the economic activities of wholesaling and retailing. 
At the same time, f oreigners can engage in wholesaling and retailing  activities classified as medium 
and high risk  as long as they obtain  a business  licence, in line with Article 14  of Decree -Law 
No. 34/2017 . 
The process for seeking the authorization  (licence)  to carry out th ese activities is : 
i. to register the business and enterprise and obtain the commercial documents from the 
Commercial Registration and Verification Service (SERVE) ; 
ii. apply for the respective activity  licence  through SERVE  who would co ordinate  with the 
competent line ministries on the issuance of a business licence to carry out these activities . 
VII. TRANSPARENCY  
- Notifications  
Question 57 
Questions and Replies (WT/ACC/TLS/16), f ollow up question to Question 69: Referring 
to the answer to this question, does Timor -Leste plan to seek any technical assistance to 
as it continues to develop its notification obligations?  
Answer : 
Yes, as Timor -Leste continues to develop its notification obligations, we inte nd to seek technical 
assistance in the related area to ensure our compliance with the WTO transparency principles once 
we become a member of the WTO.  
VIII.  TRADE  AGREEMENTS  
Question 58 
Questions and Repli es (WT/ACC/TLS/16), f ollow up question to Question 71: Referring 
to the answer to this question, could Timor -Leste give a provisional time period regarding 
its accession to the Association of South East Asian Nations (ASEAN)?  
Answer : 
Timor -Leste is fully aware of the synergy that both WTO and ASEAN initiatives posit. The two 
processes are complementary to each other. ASEAN accession requirements are similar to those of 
the WTO, and in some areas WTO commitments represent the current ba seline for ASEAN rules , as 
all ASEAN countries are WTO Members.  
In ensuring close coordination between both processes, Timor -Leste is currently working on the 
legal basis to unite the technical efforts and resources towards both accessions. Such arrangemen ts WT/ACC/TLS/ 20 
 
- 33 - 
 
  will strengthen Timor -Leste 's effort in the closing of gaps in key policy, legal and regulatory 
frameworks for trade and investment and the assist ing of economic line agencies and the private 
sector in areas such as human capital development and improve ment of the quality -of-service  
delivery before and after accession.  
In terms of the provisional time period regarding Timor -Leste 's accession to the ASEAN, an ASEAN 
Fact-Finding Mission on Economic and Socio -Cultural  Community Pillar is expected to take pl ace in 
Timor-Leste  in the 2nd quarter of 2022 , after which a comprehensive assessment, a timeline, and 
roadmap will be developed to guide ASEAN in furthering T imor-Leste 's accession.  
 
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