RESTRICTED  
  
WT/ACC/TLS/28  
 
14 February 2023  
(23-1096) Page: 1/23 
Working Party on the Accession of Timor -Leste  Original: English  
 
ACCESSION OF TIMOR -LESTE  
QUESTIONS AND REPLIES  
The following submission, dated 13 February 2023 , is being circulated at the request of the 
Delegation of the Democratic Republic of Timor -Leste.  
 
 
_______________  
 
  WT/ACC/TLS/28  
 
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  TABLE OF CONTENT  
GENERAL  ................................ ................................ ................................ ..........................  3 
II. ECONOMIC POLICIES  ................................ ................................ ..............................  3 
- Investment regime  ................................ ................................ ................................ ... 3 
- State ownership and privatization  ................................ ................................ ...............  5 
- Pricing policy  ................................ ................................ ................................ ...........  9 
III.    FRAM EWORK FOR MAKING AND ENFORCING POLICIES  ................................ ..........  9 
- Powers of executive, legislative and judicial branches of Government  ...............................  9 
IV. POLICIES AFFECTING TRADE IN GOODS  ................................ ...............................  11 
A. IMPORT REGULATIONS  ................................ ................................ .........................  11 
- Customs Valuation  ................................ ................................ ................................ .. 11 
- Rules of Origin  ................................ ................................ ................................ ........  12 
- Antidumping, countervailing duties, safeguard regimes  ................................ .................  13 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  ...............................  13 
- Industrial policy, including subsidies  ................................ ................................ ..........  13 
- Technical barriers to trade, standards and certification ................................ ..................  14 
- Sanitary and phytosanitary measures  ................................ ................................ .........  15 
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIME  ................................ .............  17 
VI. POLICIES AFFECTING TRADE IN SERVICES  ................................ ...........................  18 
VII.    TRANSPARENCY  ................................ ................................ ................................ ..... 22 
- Public ation of information on trade  ................................ ................................ ............  22 
- Notifications  ................................ ................................ ................................ ...........  23 
 
  WT/ACC/TLS/28  
 
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  GENERAL  
Question 1 
Thank you for submitting an updated Legislative Action Plan during the 4th Working Party 
meeting. Timor -Leste should incorporate dates (e.g., expected dates of adoption and 
enactment) of outstanding legislation into its LAP table. For example, Part I should be 
updated to reflect, among others, updates provided on the Law on Valu e Added Tax, Taxes 
and Duties Act and the Tax Proceedings Code as described in  response to Question 15 of  
the Question and Replies document (WT/ACC/TLS/24). Providing dates in the LAP shows 
Members that Timor -Leste has a plan to address outstanding pieces of legislation prior to 
and after accession.  
Answer:  
Timor -Leste recognizes the importance of timely and regular provision of updated and accurate 
information in its Legislative Action Plan ( LAP). This is  paramount for the process of accession. 
The last revision of the LAP (circulated  in document WT/ACC/TLS/6/Rev.6)  includes  the a dditional 
information on  the planned dates of development and adoption of the  outstanding pieces of 
legislation , as requested by Member s.  
II. ECONOMIC POLICIES  
- Investment regime  
Question 2  
Paragraphs 31 and 32:1 We note the reference to investment incentives, that may be 
conditioned on a determination that the investment in question "contribute s to the 
socio -economic development of Timor -Leste. " Can you confirm that this provision will be 
interpreted in a manner consistent with the Agreement on Trade -Related Investment 
Measures, i.e., that investment incentives will not be conditioned on the use of 
domestically produced products?  
Timor -Leste wou ld like to confirm that "contribute to the socio -economic development of 
Timor -Leste " means that the investment project eligible for investment incentives is expected to 
contribute to job creation and knowledge and technology transfer.  
This national polic y is reflected in the Private Investment Law  (Law No. 15/2017  of 23 August 2017 ) 
and is part of the Government 's "national objective " to diversify Timor -Leste 's economy  and to boost 
job opportunities as per the National Strategic Development Plan 2011 -2030 (SDP)  as well as  the 
National Employment Strategy 2017 -2030, approved by Government Resolution No. 44/2017.  
The National Employment Strategy states that "the development of Timor -Leste into a prosper ous 
middle -income country with a diversif ied and modern economy " implies a fundamental 
transformation and a consistent approach across all three pillars of the SDP: (i) social capital, 
(ii) infrastructure  development and (iii) economic development. The  role of investors is essential to 
increase the "value " of social capital by transferring knowledge and technology. The role of investors 
is also essential to boost the job market opportunities.  
These policies of the Government are consist ent with the Agreement on Trade -Related Investment 
Measures ( TRIMs Agreement ), including the provisions on the local content requirement s. 
Timor -Leste accordingly confirms that th e provision  referred to in paragraphs 31 and 32  will be 
interpreted in a mann er consistent with the TRIMs Agreement and all other related WTO A greements , 
and that investment incentives will not be conditioned on the use of domestically produced products . 
Question 3  
Paragraph 36: This paragraph states that sectors can be added or removed from the 
negative list at any time based on relevant legislation.  
 
1 Here and below, unless otherwise specified, paragraph and annex numbers are meant to refer to the 
draft Report of the Working Party ( document WT/ACC/SPEC/TLS/ 5). WT/ACC/TLS/28  
 
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  • If a sector is added to the list, is there advance notice?  
• What happens if a sector is added to the list where ther e is participation by foreign 
investors?  
Answer:  
According to Article 13(2)  of the Private Investment Law  (Law No. 15/2017  of 23 August 2017) , 
TradeInvest Timor -Leste is responsible for updating and posting on its official website  
(www.tradeinvest.tl)  the updated version s of all laws, regulations, procedures and forms used in the 
private investment legal regime.  Accordingly, in the rare cases in which the negative list (i.e., the 
list of sectors prohibited/restricted for all investors or conditional to fore ign investors) evolves due 
to legislative changes, such changes are to be notified and published by TradeInvest Timor -Leste 
through its official website.   
If a sector is added to the negative list  as prohibited/restricted for all investors , the participation by 
foreign investors in a sector should stop . Likewise, if a sector is added to the negative list as 
conditional to foreign investors, the participation by foreign investors in a sector should stop un til 
the foreign investor fulfills the requ isites established in the law for their participation.   
In any case, legislative changes take time to enter into force and, as a general principle, if a new 
sector in which foreign investors are already participating is to be included in the negative list, the 
Government may inform and engage in a dialogue  with the foreign investor (s) to find an 
understanding between all parties involved .Timor -Leste would like to highlight that , in the event of 
new sectors added or removed from the negative list, the rights of foreign investors are protected 
by law. Article 11 of  the Private Investment Law guarantees Fair and Equitable Treatment to 
investors by stating that "all investors are entitled to fair and equitable treatment and, to this end, 
have at their disposal all legal means of a judicial and administrative nature le gally in force to 
guarantee the full protection and security of their investments ". Article 12 of the same Law 
guarantees the "equal rights of access to the courts for the defence  of their legally protected rights 
and interests " and Article 15 regulates the guarantees for investors against expropriation (including 
if any new sector is added to the negative list).  
Finally, Timor -Leste would also like to inform that several sectors have been removed from the 
negative list recently.  These are: acti vities related to arms and ammunition production and 
distribution (which are no longer reserved for the State); publishing activities for books, periodicals, 
newspapers and other publishing activities and air carrier operator activities (which are no longe r 
conditional for foreign investors' participation).  
Question 4  
Paragraph 36, Table 2 "Summary of the sectoral classification in the Negative List ": We 
note the inclusion of "Activities related to environmental protection areas." Can 
Timo r-Leste confirm that this does not preclude private environmental services activities 
such as environmental consulting services, or monitoring environmental conditions for 
private customers?  
Answer:  
Timor -Leste would like to confirm that  the inclusion of  "activities related to environmental protection 
areas " does not preclude private environmental services activities such as environmental consulting 
services or  monitoring environmental conditions for private customers.  
Question 5 
Paragraph 36, Table 2 "Summary of the sectoral classification in the Negative List ": We 
note the inclusion of "Postal and Courier Services." Can Timor -Leste confirm that inclusion 
of this sector does not preclude provision of private delivery services such as expres s 
delivery that operate independently of Timor -Leste's national post?  WT/ACC/TLS/28  
 
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  Answer:  
Timor -Leste would like to confirm that the inclusion of "postal and courier services " does not preclude 
provision of delivery services such as express delivery that operate independently of Timor -Leste 's 
national post. Currently, there are several courier  delivery/supply services operating in Timor -Leste 
such as DHL International.  
- State ownership and privatization  
Question 6  
Paragraph 42: This paragraph indicates that Timor -Leste established a new mining SOE 
since the 3rd Working Party meeting.  
• What is the purpose and mandate of this SOE (the Mining Company of 
Timor -Leste)?  
• What is its capitalization and ownership structure?  
• Are there other SOEs that Timor -Leste is in the process of or planning to create?  
Answer:  
Timor -Leste would like to inform that the Mining Company of Timor -Leste (CMTL , S.A.) was created 
by Decree -Law No. 43/2022 of 8 June 2022 on "Mining Company of Timor -Leste"  in the form of a 
Joint-Stock  Company . The purpose and mandate of the Company, according to Article 3(1)(2)  of the 
Decree -Law, "shall be to conduct mining activi ties as defined by law, including reconnaissance, 
prospecting and exploration, evaluation, development, exploitation, processing, transportation and 
marketing of minerals, as well as mine closure activities ". Also, "in pursuing its object ive, CMTL, S.A. 
may also undertake complementary or accessory activities to mining activities and the provision of 
services related to mining activities, including, in particular, technical, commercial and management 
consultancy services in the mining sector. "  
Regarding th e capitalization and ownership structure, Article 4(1)(2) of the above -mentioned 
Decree -Law establishes that "the initial capital stock of the company, fully subscribed and paid up 
by the State, is US$600,000 ". Being fully owned by the State at the moment of its creation, "any 
transfer of shares of CMTL, S.A. to an entity that is not, directly or indirectly, controlled by the State, 
must be authorized by the Council of Ministers, upon reasoned proposal by the General 
Assembly /Shareh olders Meeting of the CMT L, S.A."  
Timor -Leste would also like to inform that th e Company for the Management of Industrial Parks 
(GESPIN, S.A .) has recently been established through Decree -Law No. 70/2022 of 28 September 
2022 on the establishment of "GESPIN -Management of Industrial Parks, S.A. " As per Articles 2 and 
5(1)(4) of the Decree -Law, GESPIN , S.A.  is established in the form of Joint -Stock Company  and has 
an initial capital stock, fully subscribed and paid up by the State, of US$600,000. The transfer of 
shares of GE SPIN, S.A. must be authorized by the Council of Ministers upon reasoned proposal of 
the member of the Government responsible for the area of industry.  
The purpose and object of GESPIN, S.A., as per Article 4(1)  of the Decree -Law, is to manage the 
industrial parks and to ensure the exercise of its competences, namely of an economic, financial and 
asset management nature, necessary for the smooth operation of the assigned industrial parks. is 
As an entity manag ing industrial parks, ac cording to Decree -Law N o. 44/2022 of 8 June 2022 on 
"Legal Regime of Industrial Parks ", GESPIN SA, in particular : (i) carries out all operations necessary 
for the installation of an industrial park;  (ii) ensure s provision of common services to support 
industrial park users ; (iii) develop s actions to promote and advertise an industrial park;  (iv) e nsure s 
the necessary works for the construction  of the industrial park ; and (v) ensure s the regular operation 
of the industrial park.  
Timor -Leste would  like to inform that there are no other SOEs currently in the process of creation. 
Nevertheless, Timor -Leste may establish more SOEs in the future to meet its economic development 
targets and objectives.  WT/ACC/TLS/28  
 
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  Question 7  
Paragraph 42: The last sentence of this paragraph states that all SOEs and private 
companies acted in accordance with commercial considerations. We have concerns with 
this conclusory statement without further inform ation.  
• In particular, can Timor -Leste provide us additional information demonstrating 
that the listed SOEs are acting in accordance with commercial considerations?  
• Further, we are also concerned with the general statement that private companies 
acted in accordance with commercial considerations as that is the general 
understanding of the concept (although there may be exceptions).  
• We request, at minimum, for the sentence to be amended to indicate that, "In view 
of the representative of Timor -Leste…" .  
Answer:  
Timor -Leste would like to inform that  SOEs and other types of businesses and enterprises are treated 
equally . SOEs  in Timor -Leste, considering their nature and main activities, are profit -oriented entities 
and thus they act in accordance with commercial considerations.  Pending further regulation, SOEs 
in Timor -Leste are regulated by Decree -Law No. 14/2003 of 24 Septem ber 2003 on "Public 
Companies ". Apart from the peculiarities for their constitution, according to Articles 7 and 8(1) of 
this Decree -Law, SOEs are to be registered and licensed as any other private company following the 
procedures established in Decree -Law 16/2017 of 17 May 2017 on "Business Registration ", and 
Decree -Law No. 34/2017 of 27 September  2017 on "Licensing of Economic Activities" , as amended 
by Decree -Law No. 83/2022  of 23 November 2022 . Program and financial management principles 
of SOEs are reg ulated in Articles 20 and 21 of the above -mentioned Decree -Law No. 14/2003. 
According to these Articles, SOEs act in accordance  with commercial considerations with limited 
exceptions. Exceptions include the need of providing essential services below market price or below 
the cost of production aiming to provide social services not economically viable at a given moment. 
As a rule , SOEs seek the economic development of the country and fol low commercial considerations 
in order to ensure its financial equilibrium and long -term viability. As requested by the Member,  we 
take note and propose to revise the last sentence  of paragraph 42  as follows:  
42. (…) "Further, all SOEs and private companie s were treated equally, in terms of their 
business operation, and acted in accordance with commercial considerations.  Further, all SOEs 
and private companies were treated equally in terms of their business operation. SOEs act ed 
in accordance with commercia l considerations with the limited exceptions provided 
in Articles 20 and 21 of Decree -Law No. 14/2003 of 24 September 2003 on "Public 
Companies" . Such exceptions included the need to provide essential services below 
market price or below the cost of produc tion aiming to provide social services not 
economically viable at a given moment. " 
Question 8  
Paragraph 45:  
• Can you clarify what the clause "and sales in international trade" is meant to 
modify?  
• Is it meant to be part of the "government use" carve out or meant to be additional 
to "purchases of goods and services?" In either case the requirement that state -
owned  or invested enterprises act in accordance with commercial considerations 
should apply to both purchases and sales and not just "sales in international 
trade". Sales by such firms domestically, even when not traded internationally, can 
distort trade in dow nstream industries.   
• We also continue to have concerns with "adequate opportunity" as this is 
subjective.  WT/ACC/TLS/28  
 
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  Answer:   
Timor -Leste would like to  inform that the language  of the commitment which it is ready to undertake  
has been widely accepted in many WTO accessions . It follows the language of Article XVII :1(a) of 
the GATT 1994  which  talks about "purchases or sales involving imports or exports ". Thus, 
Timor -Leste  confirm s its understanding  that the clause "and sales in international trade " is meant to 
be additional to "purchases of goods and services ". Nevertheless , and despite this language being 
widely accepted , Timor -Leste is ready to consider  an alternat ive wording for this part , if proposed 
by the Member .  
Timor -Leste would  also like to inform that the term "adequate opportunity " is in line with the 
terminology used in Article XVII :1(b) of the GATT 1994. Also, Timor -Leste would like to inform that, 
as a Lea st-developed country (LDC) , it is in no position to commit beyond the GATT 1994, while  
using the term "equal " instead of "adequate " might  imply obligations WTO+. In this regard, 
Timor -Leste would like to kindly request the Member  to consider the recommendations of the LDC 
Accessions Guideline s. Please also refer to  response to  Question 12 below for further  explanation .  
Question 9  
Questions and Replies (document WT/ACC/TLS/24), response to Question 4: Timor -Leste 
notes that SOEs are "often granted favourable  treatment such as subsidies, debt waivers, 
favourable  loans, and protection against bankruptcy." Which, if any, apply to the SOEs of 
Timor -Leste?  
Answer:  
The consideration that SOEs are  "often grant ed favourable treatment such as subsidies (…) " came 
out of the policy findings laid out by the Asian Development Bank analysis in 2017 which  was mainly 
focused on  State Agencies. In the recent years, many State Agencies have been transformed into 
SOEs.  
Timor-Leste as an LDC needs to guarantee to its people  "essential services " such as (but not only ) 
water, electricity or sanitation. According to Article 20(3) of Decree -Law No. 14/2003 of 
24 September  2003 on "Public Companies ", whenever an SOE is required to provid e essential 
services below market price or below the cost of production, aiming to provide social services or 
services essential to national economic development not economically viable at a given moment  
(please also see response to Quest ion 7), the State should provide subsidies (or other necessary 
measures) to finance the expenses that the SOE cannot assume . The decisions on the amount of 
such subsidies are made  on a case -by-case basis by the Council of Ministers and/or the National 
Parliament, which evaluate the situation and the essential needs to be covered and decide the 
financial measures to be approved .  
Question 10  
Questions and Replies (document WT/ACC/TLS/24), response to Question 4: Timor -Leste 
notes that "the existing legal framework for the SOE in Timor -Leste allows for a 
transformation of an SOE."  
• What transformation is permissible under the legal framework? What would the 
SOE be transformed into?  
• Can private sector companies be "transformed" into SOEs?  
Answer:  
According to Article 40 of Decree -Law No. 14/2003 of 24 September  2003 on "Public Companies ", 
SOEs are permitted to transform into  Private Limited Liability Companies and/or Joint Stock 
Company/Corporations. The transformat ion is possible when authorized by the entity with 
competences to create or establish the SOE. Transformation of an SOE into a Joint Stock Company 
or into a Limited Liability Company therefore is allowed if there is an authorization from the 
competent enti ty that created or established the SOE. The competent authority to create and /or 
transform SOEs in Timor -Leste is the Council of Ministers which can do so through Decree -Law 
and/or the National Parliament which can do so through Law , as established in Article 10 of WT/ACC/TLS/28  
 
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  Decree -Law No. 16/2021 of 15 September  2021 on "General Structure of the Public Administration ".  
Timor -Leste would also like to inform that the applicable laws and legislation do not regulate the 
transformation of private sector companies in to SOEs. Nevertheless, according to Article 6 of 
Decree -Law No. 14/2003 of 24 September 2003 on "Public Companies" , SOEs can underwrite shares 
and thus acquire participation of private sector companies for the purposes of establishing a  State 
Invested Enterprises (SIEs) , provided that authori zation to do so is granted by the Government . 
SIEs, or "mixed companies",  are private enterprises with the participat ion by the State .  
Question 11  
Questions and Replies (document WT/ACC/TLS/24), response to Question 4: Timor -Leste 
notes that "There should be an adequate opportunity to impose additional 
requirement[s]" on SOEs. Is it correct to therefore conclude that SOEs are not regulated 
in a prefe rential manner to competing private sector firms?  
Answer:  
Timor -Leste would like to clarify that SOEs are not regulated in a preferential manner to competing 
private sector firms in public projects/bids or public tenders. SOEs should comply with the rules and 
regulations of the Procurement Regime just like any other private sector firm. Article s 4, 8 and 10  
of Decree -Law No. 22/2022 of 11 May 2022 on "Legal Regime for Public Contracts, Procurement  and 
its Infractions " sets out the principles of legality, impartiality , and equal  concurrency by which the 
access and participation conditions are equal to all interested parties and those criteria shall be well 
expressed in all procedures for procurement processes . At the same  time, SOEs should comply with 
the additional  requisites imposed by the public services or line ministries launching the tender.  
Therefore , there is no preferential treatment for SOEs if compare d with private companies or the 
private sector. Both SOEs and private com panies are equally treated in public tenders.  
Question 12  
Questions and Replies (document WT/ACC/TLS/24), response to Question 5: Timor -Leste 
indicates its preference for "adequate opportunity" when describing competing for 
purchases and sales from SOEs. What does an "adequate opportunity" look like in 
practice? In what circumstances is "adequate opportunity" distinct from or less th an an 
"equal opportunity"?  
Answer:  
As mentioned in the answer to Question 5 of document WT/ACC/TLS/24,  and in its response to  
Question 8 above,  we believe that keeping "adequate opportunity" would be in line with the 
terminology used in Article XVII  of the  GATT 1994 .  
According to the Oxford Dictionary of the English Language, "adequate " means "enough in quantity, 
or good enough in quality, for a particular purpose or need ", whereas "equal " means "the same in 
size, quality, value, etc. " as something else. Thus, Timor -Leste would like to propose maintaining 
the wording "adequate opportunity" due to the special treatment that may be given to SOEs under 
the legislation applied in specific/restricted sectors. Also, even though SOEs are treat ed, as a general 
rule, equally to private sector companies, limited exceptions can be found when dealing with 
essential/social services of the State.   
Question 13  
Questions and Replies (document WT/ACC/TLS/24), response to Question 5: Timo r-Leste 
notes that "in their purchases or sales involving either imports or exports, the [SOEs] act 
in a manner consistent with the general principles of non -discriminatory treatment, like 
normal commercial entities or private companies." Do SOEs adhere to  this general 
principle for purchases or sales involving domestic goods or services?  WT/ACC/TLS/28  
 
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  Answer:  
As a rule , SOEs act in a manner consistent with the general principles of non -discriminatory 
treatment for purchases or sales involving domestic goods or services with some particularities and 
exceptions. For the purchases of imports or exports and domestic goods and services, SOEs are 
consistent with the principles of non -discriminatory treatment, provided that the Public Procurement 
Regime applies. Regarding sales  involving domestic goods or services, SOEs act in a manner 
consistent with general principles of non -discriminatory treatment, like normal commercial entities 
or private companies, with the  limited  exceptions included in Decree -Law No. 14/2003 of 
24 September 2003 on "Public Companies" (see response s to Question s 7 and 8).  
Question 14 
Will the Government of Timor -Leste complete the STE questionnaire?  
Answer:  
Timor -Leste  would like to re-confirm  that currently there are no Timorese ent ities qualifying as an 
STE within the  meaning of  Article XVII of the GATT  1994 and the Understanding on the Interpretation 
of Article XVII of the GATT  1994. Thus, Timor -Leste believes that there is no information to report 
in the STE questionnaire.  If in future any STE is established, Timor -Leste will be ready to complete 
the questionnaire.  
- Pricing policy  
Question 15  
Paragraph 55:  We thank  Timor -Leste for providing Table 4, Estimated value of agricultural 
production in Timor -Leste, 2008 – 2012. Can you provide figures for the value of 
agricultural production in Timor -Leste in 2019, 2020, and 2021? Such information would 
help Members put int o context the information provided in Supporting Table DS:1 on 
pages 2 and 3 of document WT/ACC/SPEC/TLS/1/Rev.2.  
Answer:  
Timor -Leste would like to re-confirm  that the program POVO KUDA  GOVERNU SOSA  terminated  in 
2012. Please refer to document WT/ACC/TLS/16 of 31 May 2021 ( response to Q uestion 12), for 
further details.  
As requested by the Member, Timor -Leste would like to  provide  the available info rmation  on the  
total national production of cereals (namely, corn and rice) between  2019-2021 (in tons) :  
Year  Corn  Rice 
2019 75,690.00  79,703.06  
2020 77,606.00  82,352.00  
2021 85,625.60  120,135.00  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
- Powers of executive, legislative and judicial branches of Government  
Question 16  
Paragraph 66: The representative of Timor -Leste clarified that the Constitution set forth 
the division between the legislative powers of the National Parliament and the 
Government. There were: (i) areas w here the National Parliament held exclusive 
competence to pass laws, e.g., the State Plan and the State Budget, territorial division of 
the country, the electoral law and the referendum system, tax policy, defence and security 
policy, declaration of state of emergency (Article 95.2 of the Constitution); (ii) areas 
where the National Parliament had the primary responsibility to legislate or could 
authorize the Government to legislate, e.g., monetary system, banking and financial WT/ACC/TLS/28  
 
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  system, definition of crimes,  sentences, security measures and their respective 
prerequisites; definition of civil and criminal procedure; organisation of the judiciary and 
status of magistrates (Article 96.1 of the Constitution); (iii) overlapping areas where both 
the National Parlia ment and the Government could legislate which were not identified in 
the Constitution, such as public procurement rules; and, (iv) areas of exclusive reserve of 
legislative powers of the Government, e.g., matters concerning the organization and 
functioning  of the Government, including the organization of public administration and 
creation of autonomous agencies (Article 115.3 of the Constitution). The Parliament 
adopted its legislative acts in the form of Laws, while the Government enacted Decree 
Laws. Both  Laws and Decree Laws were legislative acts where distinction was one of form 
and not substance. There was no hierarchy between them. All laws, including those 
approving, denouncing or ratifying an international convention, treaty or an international 
agree ment, and Decree Laws had to be submitted to the President of the Republic for 
promulgation (Articles 73, 85(a) and 88.1 of the Constitution) before publishing in the 
official gazette ("Jornal da República", available at: http://www.mj.gov.tl/jornal/). 
The continuing effect of laws from before independence is explained in Annex 7.  
• Is there any process in place to reevaluate existing laws because of changed 
circumstances, scientific or technological developments, or other new 
information, or to conform to i nternational standards?  
Answer:  
Timor -Leste would like to inform that a ll of its regulatory frameworks are continuously developing 
and evolving to adapt to the requisites of accession s to the ASEAN and the WTO, as well as to 
maintain a legal system updated to the modern  international standards.  
To this end, the Commission for Legislative Reform and for the renovation of the Justice Sector was 
created  in 2015  through the Government Resolution No. 30/2015 of 28 A ugust 2015. The creation 
of this Commission, tasked with the drafting a comprehensive report on the status of the national 
legal framework, including recommendations to the Government to improve them, was included in  
the National Strategic Development Plan  2011-2030. The Commission ended its mandate in 2017. 
At the beginning of VIII Constitutional Government,  in 2018, the Ministry for the Legislative Reform 
and Parliamentarian Affairs was created to, among others, continue  with the analysis and 
development of the Timorese legal frameworks.  In 2020,  before being dissolved, the Ministry 
prepared and formally submitted to the Prime Minister the comprehensive report of its mandate.  
Currently, the continuous analysis and development of the Timorese legal framewo rks are carried 
out by the different line ministries within the areas of their competence.  
Question 17  
Paragraph 85: Timor -Leste notes that "from the date of accession, Timor -Leste's laws and 
regulations would provide individuals or enterprises affected by any administrative action 
subject to WTO provisions, the right to appeal such action, without penalty, both to a 
higher administrative authority and to the courts or other independent tribunal in 
conformity with WTO o bligations…"  
• Do any of the laws or decrees included in the legislative document or the 
Legislative Action Plan document cover this matter?  
• Are there specific requirements that must be satisfied for an interested person 
to appeal a regulation?  WT/ACC/TLS/28  
 
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  Answer:  
The a ppeal of administrative actions to Higher Administrative Authorities is regulated by Decree -Law 
No. 32/2008 of 27 August  2008 on "Administrative Procedure ". This Decree -Law has been provided 
to the Working Party , in legislation notice WT/ACC/TLS/5.  The Decree-Law consecrates the right of 
individuals or enterprises affected by any administrative action (including those subject  to the WTO 
provisions) to appeal such actions, as well as to ask for their modification, nullity or overturning 
(Article 68). The app eal is to be presented to the higher administrative authority that produced the 
action ( Article 75) or to the entity with guardianship competencies over the entity that produced the 
action ( Article 84). The Decree -Law also consecrates the principle of access to Justice against actions 
produced by Public Entities ( Article 9).   
The access to courts as a fundamental right is primarily consecrated in Article 26 of the Constitution, 
which establishes that access to courts is guaranteed to all fo r the defence of their legally protected 
rights and interests. Justice shall not be denied for insufficient economic means  and thus there is a 
specific public body which  ensures legal assistance to those lacking financial resources.  Also, Article 
12 of Law  No. 15/2017 of 23 of August  2017 "Private Investment Law " indicates the access to the 
courts of justice as a primary right of the investors.  The procedures to be followed for Civil and 
Administrative Procedures in front of the Courts of Justice are contai ned in the  Decree -Law 1/2006 
of 21 February  2006 "Civil Procedure Cod e". All mentioned legislation has also been provided to the 
Working Party.   
Thus, considering that the right of appeal administrative actions to higher administrative authorities 
and the access to the courts and/or independent tribunals in conformity with WTO obligations is 
guaranteed by the Timorese legal system currently in force, Timor -Leste believes that there is no 
need for additional pieces of legislation in this area.  
Moreover, Timor -Leste would also like to inform that t here are no specific requirements that must 
be satisfied for an interested person to appeal a regulation  or an administrative action .  
IV. POLICIES AFFECTING TRADE IN GOODS  
A. IMPORT REGULATIONS  
- Custo ms Valuation  
Question 18  
Timor -Leste provided a copy of the first amendment to the Customs Code, approved by 
Decree -Law No. 14/2017 of 5 April  2017  during the 4th Working Party meeting. We are 
reviewing the draft and will revert with quest ions if any at a later date.  
Answer:  
Timor -Leste  would like to inform that the Decree -Law No. 14/2017 of 5 April 2017 "Customs Code " 
has been amended by the Decree -Law No. 87/2022 of 14 December 2022. The amended piece of 
legislation has entered into force and has been provided to the Working Party (legislation notice 
WT/ACC/TLS/27) .  
Timor -Leste would also like  to inform that, following this new amendment,  the Timorese Customs 
Code incorporates into the Timorese legislation all dispositions related to  the Customs Valuation 
Agreement (CVA ). As requested by the Member , the provisions  of the amended Customs Code 
include the interpretative notes of the CVA as part of the national legislation.  WT/ACC/TLS/28  
 
- 12 - 
 
  Question 19  
Page 3 of the Legislative Action Plan (WT/ACC/TLS/6/Rev.5): Both the Regulation o n the 
Customs Code and the Decree -Law on Customs Valuation are listed but have no 
deadlines.  Following up on Question 12 (WT/ACC/TLS/24), Timor -Leste 's reply indicates 
drafts will be put fo rward in September 2022 and approved before the end of 2022.  Please 
provide an update on timing of both drafts, including sharing drafts with the Working 
Party, and submitting the drafts to the Council of Ministers and Parliament for approval 
and enactment . 
Answer:  
Timor -Leste would like to inform that, according to the latest Legislative Action Plan ( LAP) circulated 
in document WT/ACC/TLS/6/Rev.6 , the development of the regulation of the customs code is to be 
finalized by the 1st quarter of 202 4. Timor -Leste would also like to inform that this regulation would 
involve measures regarding, among others, trade facilitation . Specifically, t his regulation will target : 
(i) Good Administrative Practices, ( ii) Publication, ( iii) Representative Professional Public A ssociation 
of Official Dispatch, ( iv) Records  and Payments, ( v) Prohibited Import Goods, ( vi) Conditional import 
goods, ( vii) Customs Warehouse, ( viii) Circulation of Goods subject to Selective Consumption tax – 
ISC – and control of exit from port facilities, Documents accompanying goods subject to ISC, and 
(ix) Guarantee for customs debt and requirement of guarantee.   
Regarding the Decree -Law on Custom s Valuation, which  has already been approved and published 
as Decree -Law No. 87/2022 of 14 December 2022  and incorporates the CVA into the Timorese 
legislation, please refer to response to Q uestion 18  above.  
- Rules of Origin  
Question 20  
Paragraph 138 states that Timor -Leste is developing the domestic legal framework 
needed to comply with the WTO Agreement on Rules of Origin. In what areas is 
Timor -Leste currently working to come into compliance with the Agreement on Rules of 
Origin?  
Answer:  
Decree -Law No. 95/2022 of 28 December 2022  on "Rules of Origin" has been published and entered 
into force . This piece of legislation  complies with the WTO Agreement on R ules of Origin  as it adopts 
the principles of impartiality , and transparency, predictability, consistency and neutrality  of the rules 
of origin , as well as with  the definitions  established in Part I of the Agreement  and the origin criteria 
defined in  Part II of  the Agreement on "Disciplines to Govern the Application of Rules of Origi n". 
It covers both preferential and non -preferential rules of origin . Furthermore , the legislation  was 
review ed and commented on by WIPO  and WTO Secretariat experts  prior to its approval . 
The Government is working on subsidiary legislation regulating origin certification processes and 
procedures , aiming for it to  also be in compliance with  the WTO Agreement on Rules of Origin.  
The drafting of subsidiary legislations  regulating origin certification processes and procedures is 
ongoing and it i s expected to  be finalized  within 90 days from the entry into force of the Decree -Law. 
The draft legislation will also be in compliance with the WTO Agreement on Rules of Origin.  
Question 21  
Paragraph 138 also states that certificates of origin are required for SPS purposes. Are 
such certificates only required for SPS purposes?  
Answer:  
Timor -Leste would like to inform that, according to  the Customs Code and the newly approved 
Decree -Law on Rules of Origin  (see response to Q uestion 20 above ), the certificate  of origin  is not 
required for SPS purposes  only. WT/ACC/TLS/28  
 
- 13 - 
 
  Certificates  of origin  are require d (in case of doubt) : (i) to determine MFN and preferential treatment, 
(ii) for government procurement,  (iii) for trade statistics purposes, (iv) to implement measures and 
instruments of commercial policy such as anti -dumping duties and safeguards measures, and (v) for 
application of labelling and marking requirements.  Article 20 of t he new Decree -Law have introduced 
a joint Commission on assessing the emission of certificates of origin involving relevant entities 
under the chair manship  of the Director General of Commerce.  All the above requirements are to be 
implemented by this Commission.   
In addi tion, the certificate of origin is required , for example,  in case of suspicion of fraud ( Article 95 
of the Customs Code ).  
- Antidumping, countervailing duties, safeguard regimes  
Question 22  
Paragraph 153 states that "the development of po licy and legislation on trade remedies 
would be finalized in 2022."  Please confirm that the government of Timor -Leste expects 
to finalize this policy and legislation by the end of 2022. If that is not the case, please 
advise when trade remedies legislation  and policies are expected to be finalized. Please 
provide the Working Party with the draft legislation when it is available, and please update 
the Legislative Action Plan to include trade remedies legislation.  
Answer:  
The draft policy for the trade remedies regime has been finalized and submitted for presentation  to 
the Council of Ministers . It has been provided to the Working Party (legislation notice 
WT/ACC/TLS/27).   
Based in the policy , the drafting of the Trade Reme dy Law and the ministerial decree to establish a 
Trade Remedies desk is undergoing with the support of  the ADB, to be finalized by the 3rd quarter 
of 2023 .  
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  
- Industrial policy, including subsidies  
Question 23  
The revised Legislative Action Plan states that an Action Plan to promote manufacturing 
will be drafted by the Ministry of Tourism, Commerce and Industry. Could Timor -Leste 
please update the latest development and ela borate on the said Action Plan?  
Answer:  
For the past twenty years, Timor -Leste economy is heavily dependent  on oil revenues (the Petroleum 
Fund). The Government is conscious of the  need to diversify the economy , focusing mainly on the 
development of  the pr oductive sectors through value -added manufacturing processes. However, 
Timor -Leste 's manufacturing industry stands still due to a number of constraints, such as limited 
domestic production capacity, poor access to finance, lack of competitiveness and skill s.  
Under these circumstances and to provide a clear path and systematic guidance, the Government of 
Timor -Leste  is drafting an  action plan to promote manufacturing that will foresee necessary 
measures for furthering industrialization that could contribute to job creation, transfer of technology 
and management skills.  
The plan will emphasize the development of light manufacturing through efficient utilization of 
resources, based on pr ocessing of materials, manufacturing of merchandises, distributi on of goods 
as well as provi sion of services or any other activities that are specified by the Government  as 
potential contribution s to development and diversification of the national economy , with the aim of 
encouraging both local private sector and promoting and attracting foreign direct investments (FDI) 
in the country to create job opportunit ies and absorb the currently underutilized youth dividend.   WT/ACC/TLS/28  
 
- 14 - 
 
  Diversification and transition to a non -oil dependent economy is also reflected in the National 
Strategic Development Plan 2011-2030 and the National Employment Strategy 2017 -2030. In terms 
of timeline, as per the Legislative Action Plan circulated in the document WT/ACC/TLS/6/Rev. 6, it is 
highlighted that the draft of the action plan to promote manufacturing is to be presented  to the 
Council of Ministers in the 4th quarter of 2023.  Currently, we are developing a Terms of Reference 
to mobilize resources to develop t he action plan for manufacturing promotion.  
- Technical barriers to trade, standards and certification  
Question 24  
Paragraphs 166 and 167 describe the work to be undertaken to develop technical 
regulations and procedures related to implementation of the TBT Agreement. Has 
Timor -Leste conducted an inventory to determine what specific aspects the new 
legislation must cover?  
Answer:  
The inventory is being conducted in line with the timeline envisaged by Anne x 16 of the draft Working 
Party Report . Among others , the new legislation  shall cover :  
• Establishment of  the National Quality Council ; 
• Metrology, standards and conformity assessment systems and procedures ; 
• Metrology verification Services ; 
• Internal SOP on Guide lines for inspection  and certification schemes ; 
• National Quality Systems ; 
• Accreditation Criteria ; 
• National Standards ; and  
• Technical Regulations . 
Apart from legislative developments, in order to ensure compliance with the TBT Agreement, 
Timor -Leste needs to tackle the following issues:  
• Conformity Assessment Infrastructure, which shall also include accreditation of Testing, 
Calibration and Inspection Conformity Assessment Bodies (CAB) ; 
• Establishing a Notification Authority ; and  
• Participation in  International Standards Setting Bodies  activitie s. 
Question 25  
Annex 16 indicates that an enquiry point will be established in 2023. One of the tasks of 
the enquiry point is to notify the WTO of changes to or new technical regulations. Is there 
an entity within Timor -Leste that serves as a coordinator for all technica l regulations?  
Answer:  
The Institute of Quality of Timor-Leste (IQTL) is a regulatory institution that regulates all matters 
regarding Standardization, Certification and Metrology . According to  Decree -Law No. 15/2021 on 
"First Amendment to Decree -Law No. 10/2018 of 9 April 2018 "On the Statute of the Institute for 
the Qualit y of Timor -Leste, I.P.", IQTL has full competence to  develop technical regulations and  set 
standards related to all products circulating in the Timor -Leste market.   
IQTL serves as  the TBT enquiry point. It also acts as a notifying authority for technical r egulations 
and serves as a coordinator for all technical regulations.  The structure of IQTL has already been 
developed and a specific department has been established for the tasks of the IQTL as the TBT 
enquiry point. For the time being, the contact person /focal point remains the director of the IQTL.  WT/ACC/TLS/28  
 
- 15 - 
 
  Also, Timor -Leste would like to inform that , after joining  the Codex in 2018,  the National Codex 
Committee (NCC) has been established in 2022 . The Codex Committee, led by the Ministry of 
Agriculture and Fisheries and the Ministry for Tourism, Trade and Industry, includes  representatives  
from all key ministries  and provides recommendations and instructions regarding animal and plant 
health -related issues. T he NCC will also provide a coordinating mechanism among national 
stakeholders in the establishment of food control legislations, including all technical regulations 
relevant to food.  
Regarding WTO notification obligations  of Timor -Leste, please also see answer to Question 41 below.  
- Sanitary and phytosanitary measures  
Question 26  
Timor -Leste  stated that it has provided draft Decree -Laws on "Animal Health and 
Quarantine" and on "Plant Health and Quarantine" to the Working Party.  
• Please describe the circumstances under which Timor -Leste's veterinary 
authority would  "prohibit or restrict non -therapeutic uses of antimicrobials" 
(as stated in the draft Decree -Law on "Animal Health and Quarantine," page 31).  
• Does Timor -Leste have an approach or a timeline for developing a list of 
Maximum  Residue Limits (MRLs) for pesticides and a list of veterinary drugs?  
Answer : 
• Timor -Leste confirms that the draft Decree -Laws on Animal and  Plant Health and Quarantine 
determines  the establishment of a veterinary authorit y and plans to prohibit non-therapeutic 
uses of antimicrobials . The draft Decree -Laws are being considered  by the Council of Ministers . 
• In addition, Timor -Leste would like to bring to Members ' attention that the re was an error in 
the unofficial English translation of the distribu ted draft. Thus,  the actual translation should 
state "prohibit non -therapeutic uses of antimicrobials " and not  "prohibit or restrict 
non-therapeutic uses of antimicrobials ".  
• Timor-Leste also would like to inform that this  criterion was based on CODEX, which 
recommends that – "medically important antimicrobials should only not be used for growth 
promotion unless potential risks to human health have been evaluated ". Thus, the 
Government has decided  to prohibit non -therapeutic uses of antimicrobials  under all 
circumstances due to the current lack of national capacities to "evaluate potential risks to 
human health ".  
• Regarding the approach/timeline for developing a list of maximum residue limits (MRLs) and 
a list of veterinary drugs, we would like to inform that  Timor -Leste will establish a list of  MRLs 
for veterinary drugs by 2024. The MRLs  will be developed based on recommendations from 
the Codex Alimentarius Commission and will be regularly reviewed and updated to ensure 
consumer health. A veterinary drug s list will also be developed  by 2024 . 
Question 27  
We note that Timor -Leste  provided information on sanitary and phytosanitary (SPS) 
products subject to import permits (including copies of application forms) in its 
Questionnaire on Import Licensing Procedures ( document WT/ACC/TLS/10).  
• How did Timor -Leste develop its list of sanitary and phytosanitary (SPS) products 
subject to import licensing?  
• How will the specific data elements requested in Timor -Leste's import permit 
application forms for animal, plant, biologic, and other SPS products help 
Timor -Leste determine tha t its SPS regulations have been met ?  WT/ACC/TLS/28  
 
- 16 - 
 
  Answer:  
Timor -Leste developed its list of sanitary and phytosanitary measures with the support of CODEX, 
IPPC and OIE and based on international standards and regulations. The list is reviewed every 5 
years with the support of the same International Organizations (CODEX, IPPC and OIE). 
Timor -Leste's sanitary and phytosanitary measures are applied according to Decree -Law 
No. 21/2003 of 31 December  2013 on "Quarantine and Sanitary Control on Goods Imported and 
Exported  and international navigation ", and implementing Government Decree No. 1/2006 of 
20 September 2006, on the "General Quarantine Regulations ".  
According to Article 13 of Decree -Law No. 21/2003 of 31 December 2013 on "Quarantine and 
Sanitary Control on Goods Imported and Exported", i mport permits  (licences  / authorisations)  are 
required for importation of any agricultural product. Import permits  cannot be issued in respect of:  
i. any items listed in CITES – Convention on International Trade in Endangered Species of Wild 
Fauna and Flora (Article 72 of Decree -Law No. 21/2003);  
ii. any item from or originating from a country or areas where there is an ongoing occurrence 
of quarantine -related plagues or diseases (Article 72 of Decree -Law No. 21/2003);  
iii. exotic seeds included in a list to be approved by Ministerial Dip loma (Article 82 of Decree -Law 
No. 21/2003).  
The specific requested data in  Timor -Leste 's import permit application forms demand critical 
information in terms of SPS measures such as on the procedures taken in the country of origin on 
virus and pest identification and treatment, certification schemes on the SPS testing and treatment, 
products origin, etc. These product details are assessed against the national quarantine 
requirements . 
However, Timor -Leste acknowledges the absence  of basic infrast ructure s and specialized human 
resources to fully comply with SPS regulations. The Government is putting all necessary effort s to 
approve new draft legislations  on Animal and Plant health  to update and moderni ze the 
above -mentioned  Decree -Law No. 21/2003. Under this  new legal framework , Timor -Leste would 
have better tools and procedures to achieve full compl iance with the SPS Agreement . 
Question 28  
Timor -Leste  has previously stated in Questions and Replies  document WT/ACC/TLS/4 of 
3 June 2020  that an import license is required for the following items to meet its risk 
analysis requirement: live animals; plants; animal or vegetal products as specified by law; 
any other good, or merchandise, animal or vegetal organism as specified by l aw. 
• Can Timor -Leste identify and explain procedures in place for the review and 
re-assessment of products requiring an import license according to Timor -Leste's 
risk analysis requirement?  
• Can Timor -Leste identify and explain areas of coordination between the 
ministries responsible for assessing whether the aforementioned items meet its 
risk analysis requirement?  
Answer:  
• Timor -Leste 's risk analysis process is applied in accordance with the rules applied by the OIE 
and the IPPC. Due to the existing lack of infrastructure and adequate human resources, the 
procedures are adjusted to the national conditions, whereby the scientific procedures, 
including pre -inspection measures of products, will be defined together with the exporting 
country. In this regard, the Ministry of Agriculture and Fisheries will check through different 
means the existence of pests and diseases in neighbouring countries exporting to Timor -Leste. 
The analysis is done on a 1 -1 basis.  Prior to the official conclusion of  an import risk analysi s, 
Timor -Leste  signs with the exporting country an  agreement to safeguard both parties ' 
concerns regarding pre-inspection risk assessment measure s. 
• Review and re -assessment only appl ies to nations free of pest and disease, and from which 
Timor -Leste import s agriculture goods and related products. It is carried out to secure that all 
imported agriculture goods related products are safe.  WT/ACC/TLS/28  
 
- 17 - 
 
  • However, in the event of any outbr eak of pest and diseases in those respective countries, we 
automatically stop the importa tion of the referred agriculture goods, until further information 
is provided by WOAH and IPPC that the respective countries have taken active control 
measures, including declaration of zones and areas free of pest and diseases. The referred 
countries will  then inform Timor -Leste, requesting Risk Assessment to be carried out.  
• The Ministries of Agriculture and Fisheries, Tourism, Trade and Fisheries, and Foreign Affairs 
do have periodic coordination meetings. The process with a specific bilateral trade partn er 
(exporter) will initiate from the Ministry of Agriculture and Fisheries, which normally leads and 
communicates with the Ministry of Foreign Affairs to draft an MoU between TL and the 
exporting country on the agreed terms regarding risk assessment measures. The Ministry of 
Tourism, Trade and Industry will be informed and follow up the process at all moments. 
This MoU will be brought to the Council of Ministers for approval prior to be signed by Timor -
Leste.  
V. TRADE -RELATED INTELLECTUAL P ROPERTY REGIME  
Question 29  
Articles 4 and 5 of the draft Copyright Code provide copyright protection to the titles of 
works and to titles of newspapers and other periodicals. Why has Timor -Leste chosen to 
extend protection to such names an d short phrases under copyright law rather than under 
trademark law?  
Answer:  
The TRIPS Agreement provide s flexibility for all WTO M embers to provide necessary protection of 
titles left entirely to the countries policy option. Timor -Leste has chosen to adopt the Civil  Lusophone 
legal system, specifically the Portuguese Copyright Code,  which  decided to protect the titles of works 
and titles of newspapers and other periodicals under Copyright law where it recognizes that titles 
are protected in the same way as  the work itself , provided it is original as highlighted in Articles 12 
and 13  of the Copyright Law No. 14/2022  of 21 December 2022 .  
A copy of the Copyright Law has been  shared with the Working Party (legislation notice 
WT/ACC/TLS/ 27).  
Question 30  
Article 179  of the draft Copyright Code , titled "Free use" provides (among other things) 
that "protection granted under this title does not include … (a) Private use." Could 
Timor -Leste explain what "private use" means or entails in thi s context?  
Answer:  
In short,  the expression "private use " is generally understood to mean uses other than public use or 
use for profit. This understanding is, for example , mentioned in relation to Article 15 of the  Rome 
Convention , which allows an exception for private use .  
As a rule, use of works and objects of re lated rights (such as reproduction, translation, adaptation, 
arrangement or other transformation) for private, personal and non -commercial purposes, such as 
research, learning or entertainment,  is regarded as free use. In certain cases of private use, 
howe ver, the exclusive right involved (such as the right of reproduction in computer programs) must 
not be limited since it would conflict with a normal exploitation  of the work. In other cases of private 
use, the exclusive right involved may be limited to a r ight to remuneration (as in the case of private 
copying of phonograms and audiovisual works). From this viewpoint, it must be taken into account 
that private reproduction is also under the control of the "three-step test " provided for in Article 9(2) 
of the Berne Convention, Article 13 of the TRIPS Agreement, Article 10 of the WIPO Copyright Treaty  
and Article 16 of the WIPO Performances and Phonograms Treaty . This means that, also in the case 
of such reproduction, any exception and limitation may only be g ranted in special cases, and they 
must not be in conflict with a normal exploitation of the works and objects of related rights concerned 
and must not unreasonably prejudice the legitimate interests of owners of rights.  WT/ACC/TLS/28  
 
- 18 - 
 
  Private copying through the global computer network (the Internet) leads to a specific situation. Due 
to the enormously great number of people connected to the network who may make "private " 
reproduction – for example, through file  swapping systems (the fi rst famous variant of which was 
Napster) – allowing this to continue freely would seriously conflict with the normal exploitation of 
the rights in the works and objects of related rights concerned. A solution may be the application of 
technological protect ion measures with efficient protection and effective legal remedies against their 
circumvention not authorized by the owners of rights or permitted by law (along with an appropriate 
restriction of any permissions by the law to truly justified specific case s, such as distant education 
and scientific research, and with appropriate guarantees).  
In this sense, Timor -Leste, as many other countries, has further developed the concept of private 
use, in particular with regard to the private or personal use of the r ight of reproduction as the use 
"in respect of reproductions on any medium made by a natural person for  private use  and for ends 
that are neither directly nor indirectly commercial, … ". 
VI. POLICIES AFFECTING TRADE IN SERVICES  
Question 31  
Paragraph 283 states that depending on the nature of length of activity, foreigners and 
foreign entities may be required to establish a local presence in Timor -Leste. In Annex  20, 
Timor -Leste outlines the business vehicle of a "Sole Trader."  
• Please clarify what services would require foreigners and foreign entities to 
establish a local presence.  
• Please clarify what length of time would trigger a requirement for foreigners and 
foreign entities to establish a local presence.  
• Please explain whether fore igners and foreign entities obtaining "Sole Trader" 
status enables them to conduct cross -border services trade without establishing 
a local presence.  
• If so, please explain any restrictions that would require foreigners and foreign 
entities to establish a l ocal presence despite having "Sole Trader" status.  
Answer:   
For Mode 3, any foreigner or foreign entity  conducting a permanent activity in Timor -Leste  as per 
the Article 3(1) of the Law No. 10/2017 of 17 May 2017, New Law on Commercial Companies,  in 
any service s sector/sub -sector , is required to establish a local presence in Timor -Leste . There is no  
specific  length of time that triggers a requirement for foreigners and foreign entities to establish a 
local presence  in order , apart from the criteri on of permanence of the  conduct ed activity . 
For Mode 1, please refer to the services offer  of Timor -Leste (WT/ACC/SPEC/TLS/3/Rev.1) . All 
sectors /services with no limitations on market access on mode 1 (none) would not require foreigners 
and foreign entities to establish a local presence.  Where sectors are unbound for market access 
mode 1 (or there are other relevant limitations), foreigners and foreign entities may be required to 
establish a local presence in Timor -Leste (for example, in relation to construction or maritime 
services).   
Question 32  
Paragraph 289 states that certain businesses cannot be carried out without a special 
license issued by regulatory agencies.  
• What services sectors fall under the category of "certain business es?" 
• The document provides examples in the areas of commercial banking, gaming, 
and oil and gas. What other services sectors require special licenses? Does this 
list align with the information provided in Annex 24?  WT/ACC/TLS/28  
 
- 19 - 
 
  Answer:  
Timor -Leste would like to inform that the legal framework for licensing of economic activities has 
been modified with the approval of  the Decree -Law No. 83/2022 of 23 November  2022, which 
amended Decree -Law No. 34/2017  of 27 December  2017 on "Licensing of  Economic Activities ". 
Timor -Leste would like also to inform that previously the activities were classified according to their 
risk in low/medium/high risk. According to Decree -Law No. 34/2017  all activities of  medium and 
high risk needed licensing. The new legal framework has s implified the procedure and now only 
some activities need licensing. The need for licensing for each economic activity will depend on the 
existence of a specific sectorial legal  framework.  There are many economic sectors yet to be 
regulated in Timor -Leste and thus  the scope  of economic activities for licensing w ill be evolving 
together  with the new regulations.   
Question 33  
Paragraph 293 notes that government policy requires all major businesses ensure a 
minimum percentage of the value of labor in all major products is dedicated to the 
employment or accredited training of citizens of Timor -Leste.  
• What is the minimum percentage of the value of labor?  
• What constitutes a "major project?"  
Answer:  
The Policy of the Gov ernment, as reflected in the National Employment Strategy 2017 -2030 and the 
Private Investment Law, is to promote the employment and training of Timorese citizens. As per 
Article 23(2)(c) of the Private Investment Law, investors can have access to greater benefits as 
negotiated in Special Investment Agreements with the State  when employing and training Timorese  
citizens . Timor -Leste would like to inform that when an investor is willing to implement a major 
project in the country, the Government will negotiate bilaterally with the investor, as established in 
the Private Investment Law, to define special benefits of differe nt nature. These bilateral negotiations 
will include percentages of labor and specific benefits in exchange.   
Timor -Leste would like to inform that a  major project is any project with a value of over one millio n 
dollars (US$1,000,000).  
Question 34  
Paragraph 296 states that the certification and registration of civil construction and 
technical consulting companies are mandatory for them to be able to bid for public 
procurement tenders.  
• How does one obtain certification and registration for  these companies?  
• Do these practices align with national treatment principles?  
Answer:  
To be able to bid for public procurement tenders, according to Article 31 of Decree -Law No. 22/2022 
of 11 May 2022 on the "Legal Regime for Procurement and Public Contracts ", companies (national 
or foreign) willing to apply to public tenders must fulfill the requirements on  legal, technical 
commercial and financial capacity to do so. All companies  must register  at the Service for Business 
Regis tration and Verification, Public Institute ( SERVE, I.P ). and comply with all the basic 
requirements as stated in the legislation , including providing the bylaws and/or statute s, map of 
locality/localization, personal identification card of the shareholders  and members of the 
administration council (ref. National Identity Card for Timorese and Passport for foreigners), filled 
up the registration form, and lodging the documents officially to SERVE, I.P. All these requirements 
are stated or required under:  WT/ACC/TLS/28  
 
- 20 - 
 
  a. Law No.10/2017 of 17 May  2017 "New Law on Commercial Companies "; 
b. Decree -Law No. 16/2017 of 17 May  2017 on "Business Registration ";  
c. Decree -Law No. 34/2017  of 27 September  2017, as amended by Decree -Law No. 83/2022 
of 23 November  2022 on "Licensing  for Economic Activities ". 
After receiving the complete set of documents by the compan y, SERVE, I.P. will immediately verify 
and analyze  the documents . Once verified that  everything is in line  with the requirement s and 
regulations , SERVE, I.P. will start to process and issue the commercial documents including the 
Certificate and Certification of Business Registration . Depending o n the economic activity  and the 
need of special licen ce, SERVE  will send the documentation  to the competent public services  and/or 
regulatory authority or line ministries for the licensing process . Once everything is finalized by the 
competent public services and/or regulatory authority or line ministries , they will instruct to SERVE, 
I.P. to deliver the necessary documents in cluding the Certificate and Certification of Business 
Registration and the Sectoral Licensing or Authorization to Conduct or Exercise Economic Activities 
to the proponent /company  so they can start perform ing the economic  activit y. The same applies  if 
the application for the Sectoral Licensing is rejected or some additional documents or information 
are requested within  the licensing process.   
Timor -Leste would  also like to confirm that the requirements  for registering businesses and 
companies as wel l as issuing the commercial documents  are the same for nationals and foreigners 
and thus these practices align with national treatment principles.  
The certification p rocedure for construction and construction consultancy companies is elaborated in 
the res ponse to Question 36.  
Question 35  
Paragraph 298: Thank you for the additional information regarding the Centre for Legal 
Training (CLT).  
• Please provide a prospective timeline for when the Timor -Leste Bar Association 
will be established and operational.  
• How often is this examination offered in a given year?  
• Are the written and interview tests offered in any languages besides Portuguese 
and Tetúm?  
• What is evaluated in the psychological test?  
• Explain whether the exam will only b e given in person or will there be a 
virtual/online option.  
Answer:  
• The Bar Association Law is currently in the pipeline for approval at the National Parliament, 
where the expectation is that the Bar Association Law will be discussed and approved by the 
National Parliament in the first quarter of this year.  
• Based on the 2023 -2028 Plan  of the Legal Training Center for Judges, Lawyers and 
Prosecutors , the course for lawyers will be implement ed in 2023, 2025 and 2027.  
• Timor -Leste kindly confirms that the writt en and interview tests are only offered in our official 
languages, namely Portuguese and Tetúm.  
• The psychological tests consist of a generic reasoning test and is used to verify that the 
individual is fit, from a psychological perspective, to act as a lawy er once passing the course.  
• The exam is only available in person.  WT/ACC/TLS/28  
 
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  Question 36  
Annex 24: As referenced under Construction and Related Engineering Services, the rules 
for certification and regulation of construction and construction consultancy companies 
are established under Decree -Law No. 27/2010. However, it also states that to date, 
Decree -Law No. 27/2010 is not currently being enforced.  
• Why is this decree -law not enforced, and does Timor -Leste expect it will start 
being enforced in the future?  
Answer:  
Decree -Law No. 27/2010 is being enforced by Article 13(2)(e) of Decree -Law No. 50/2020 "Organic 
Law of the Ministry of Public Works " which established that the Directorate General of Public Works 
is the competent authori ty to that certify and supervise the activities of companies and individual 
professionals in all aspects of the construction sector based on applicable laws.  
The Ministry of Public Works ha s also introduced policy and laws to complement  the framework for  
the construction and related engineering services through ministerial interim orders whereby, the 
construction companies must first register in Timor -Leste in order to conduct any service activities 
for the sector.  
An interim regime was issued in regards t o mobility and accessibility for disabled people at Public & 
Commercial building regulation as enacted by Ministerial Dispatch No. 07/MOP /VIII/2020 to enhance 
the inclusivity policy in all construction design in the country.  
The Ministry of Public Works h as also introduced the Decree -Law No. 8/2021 of 30 June 2021 
establishing the "Legal Regime for Classification and Qualification of Soil" in coordinati on with the 
Territorial Planning division in approving projects related to civil construction.  
Before any infrastructure project is approved in the country, c ivil construction projects involve 
verification of compliance with the Base Law on Territorial Planning (Law No. 6/2017 ), with the 
implementing instruments for territorial planning under Decree -Law No. 35/2021 of 29 December  
2021 and Decree -Law No. 8/202 1 of 30 June 2021.  
All planning for any civil construction in the country is also verified by the Directorate General of 
Urban Planning under the Ministry of Public Works .  
Following the approval of the project by the Ministry of Public Works, any development design and 
construction  company  still continues to operate under supervision, considering that the new civil 
construction code in Timor -Leste is still under development . To date, most of the construction design  
is still using the past colonial construction codes from Portugal and from Indonesia. Yet, with the 
adoption of many international conventions and practices, the International Construction Code is 
gradually adapted into the construction realm in Timor -Leste by adopting the safety and security 
requirements imposed by the international norms. This practice is now adopted in the future new 
redevelopment plan for Presidente Nicolau Lobato International Airport expansion and the future 
terminal construction which is currently in the infrastructure project pipeline supported by the Asian 
Development Bank and the Ja panese International Cooperation Agency (JICA) in Timor -Leste , as 
well as many other major projects in the country.  
Question 37  
Annex 24 states that the Ministry of Public Works, Transports and Communications is 
drafting regulations for ma ritime services.  
• Can Timor -Leste expand on the draft maritime regulations currently under 
development by the Ministry of Public Works, Transports, and Communications?  
Answer:  
Timor -Leste would like to inform that the Government is currently in the process of modernizing the 
Maritime sector, which is of paramount importance for the economic growth of the country. To this 
end, the modernization of the legal framework governing the Maritime sector, includes:  WT/ACC/TLS/28  
 
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  Timor -Leste has already ratified four International Maritime Organization (IMO) key Conventions, 
namely the International Convention for Standards of Trainings, Certification and Watchkeeping for 
Seafarers (STCW) 1978, the International Convention for the Safety of Life at Sea (SOLAS) 1974, 
the International Convention for the Prevention of Pollution from Ships (MARPOL) 1973,  1978 with  
its related protocols and the International Regulations for Preventing Collision at Sea, 1972 
(COLREG) ; 
The new Decree -Law on Maritime Transport Ship Registry, w hich has been recently introduced  to 
the Council of Ministers  and is pending revision prior to resubmission . The decree law on ship registry 
is to establish a new open registry system in Timor -Leste . With this legislation the Government also 
intends to mod ernize the sector and diversify its economy by opening a new ship registry in Timor -
Leste to be implemented by APORTIL & DNTM /National Directorate of Maritime Transport under the 
Ministry of Transport and Communications . This draft Decree -Law has been prov ided to the Working 
Party (legislation notice WT/ACC/TLS/27) . 
Also, the Council of Ministers has considered  but not yet approved the new Decree -Law on Ship 
Inspection Services . This piece of legislation is ready to be  resubmitted to the Council of Minister s. 
The intention of the new ship inspection regulation is to provide accreditation to international 
organizations  to conduct their ship inspection in Timor -Leste.  This draft Decree -Law has also been 
provided to the Working Party (legislation notice WT/ACC/TLS/27).  
Question 38  
Annex 24 states that those working in the profession of public road transporters will be 
required to register on a yet to be established Road Transporters National Registry.  
• Please explain when the Road Transporters National Registry will be established.  
Answer:  
As stated in Article 14(1)(d) of the Decree -Law No. 6/2019 of 3 April  2019 Organic Law of the 
Ministry of Transport and Communications, The National Directorate of Land and Transportation, 
under t he Ministry of Transport and Communications, is currently acting as the Road Transporters 
National Registry and thus its functions are fully  covered.  The Directorate oversees,  develop s and 
maintain s the national database  regarding registry of all vehicles including attribution of vehicle 
number plates, vehicle inspection, types of driver licenses attributed and administrative fines for 
different mode s of public transport as well as  other data as per  the law. 
Timor -Leste w ould also like to inform that new legislations are being drafted in order to create the 
Road Transporters National Registry as a specific entity . 
VII. TRANSPARENCY  
- Publication of information on trade  
Question 39  
Paragraph 302: The repres entative of Timor -Leste informed that legal instruments were 
only effective upon publication in "Jornal da República." Legal instruments were also 
published online on the website of "Jornal da República," which was part of the website 
of the Ministry of Ju stice at www.mj.gov.tl. Most of the legal instruments were made 
available by provision of a link to the relevant issue of "Jornal da República."  
• Does Timor -Leste have in place now or intend to put in place procedures to allow 
for comment on legal instrume nts before they are finalized? The information in 
this paragraph seems to describe transparency actions when legal instruments 
are finalized. Are there public consultations on draft or interim laws and decree 
laws before they are finalized and published?  WT/ACC/TLS/28  
 
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  Answer:  
Timor -Leste would like to inform that during the process of drafting the different legislations, the 
Government realizes activities of "public consultation " with all relevant sectors depending on the 
legislation.  As in most countries,  the public co nsultations are not compulsory and are done at the 
discretion of the Government.  
Question 40  
Paragraph 304: In addition, the website of the Government of Timor -Leste 
(http://timor -leste.gov.tl/?lang=en) contained a selection of legislation  in six categories. 
The website was regularly updated and provided information on the main policy decision 
taken weekly by the Council of Ministers, in three languages, Portuguese, Tetum and 
English. Some of the websites of the individual Ministries, and t he website of the Central 
Bank of Timor -Leste (CBTL), also contained links to relevant legislation.  
• Are there plans for all ministries to provide links to relevant legislation?  
Answer:  
There are no plans for all ministries to provide links to relevant legislation. All pieces of legislation 
approved by Timor -Leste are published in the Jornal da República (Official Gazzete). Some line 
ministries and other public institutions can publish pi eces of legislation for information purposes. In 
addition, the Jornal da Republica is the only official source: https://www.mj.gov.tl/jornal/ . 
- Notifications  
Question 41  
Paragraph 307:  Respond ing to a question from a Member on how the Government 
intended to manage its notification obligations, the representative of Timor -Leste 
explained that, once Timor -Leste became a WTO Member, it would adhere to its initial 
notification obligations and would  immediately notify any further changes to Members in 
regard to each amendment in its laws, legislations or other measures subsequently 
enacted in accordance with the WTO rules.   
• Would the Permanent Secretariat on the Accession to the WTO, referenced in 
paragraph 79, be responsible for notifications?  
Answer:  
Timor -Leste would like to confirm that it is fully committed to fulfil its notification obligations once it 
becomes a WTO Member. Timor -Leste would like to inform that it is currently in internal discussions 
to define the competence of the Permanent Secretariat as a national institution that will be in charge 
of coordinating and implementing the notification obligation s.  
 
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