RESTRICTED  
  
WT/ACC/TLS/4  
 
 3 June 2020 
(20-4021) Page: 1/49 
Working Party on the Accession of Timor -Leste  Original: English  
 
 
ACCESSION OF TIMOR -LESTE  
QUESTIONS AND REPLIE S TO THE MEMORANDUM  
ON THE FOREIGN TRADE  REGIME  
 In a communication dated 8 November  2016, circulated as WT/ACC/ TLS/1, the Government 
of the Democratic Republic of Timor -Leste  applied for accession to the World Trade 
Organization  (WTO) under the provisions of Article  XII of the WTO Agreement. The terms of 
reference of the Working Party are reproduced in document WT/ACC/ TLS/2/Rev. 2. In document 
WT/ACC/ TLS/3, Members had been inv ited to submit questions in writing concerning the foreign 
trade regime of Timor -Leste . The questions submitted by Members and the replies thereto provided 
by the Government of Timor -Leste are reproduced hereunder.  
 
 Delegations wishing to raise additional  questions concerning the foreign trade regime of the 
Timor -Leste  might inform the delegation of Timor -Leste  (with a copy to the Secretariat) of such 
questions in advance of the meeting of the Working Party, so that considered replies can be made 
available  by the Government of Timor -Leste to Members a t the time of the Working Party  meeting.  
 
 
_______________  
 
  WT/ACC/TLS/ 4 
 
- 2 - 
 
  TABLE OF CONTENTS  
II. ECONOMY, ECONOMIC PO LICIES AND FOREIGN T RADE  ................................ ..........  4 
2. Economic policies  ................................ ................................ ................................ .... 4 
- Main directi ons of the ongoing economic policies  ................................ ....................  4 
- Monetary and fiscal policy  ................................ ................................ .......................  5 
- Investment regime  ................................ ................................ ................................ .. 6 
- State ownership and privatisation  ................................ ................................ .........  10 
- Pricing policy  ................................ ................................ ................................ .........  11 
- Competition policy  ................................ ................................ ................................  13 
4. Domestic trade in services including value and composition of foreign 
direct  investment  ................................ ................................ ................................ .. 13 
III. FRAMEWORK FOR MAKING  AND ENFORCING POLIC IES AFFECTING FOREIG N 
TRADE  IN GOODS AND TRADE IN SERVICES  ................................ ..........................  14 
- Powers of executive, legislative and judicial branches of Government  ..................  14 
- Legislative programs or plans to change the regulatory regime  ............................  14 
IV. POLICES AFFECTING TR ADE IN GOODS  ................................ ................................ . 17 
- Trade facilitation  ................................ ................................ ................................ ... 17 
A. IMPORT REGULATIONS  ................................ ................................ .........................  19 
- Characteristics of national tariff  ................................ ................................ ............  19 
- Import licensing procedures  ................................ ................................ .................  20 
- Customs valuation  ................................ ................................ ................................ . 23 
- Safeguard regime  ................................ ................................ ................................ .. 24 
C. INTERNAL POLICIES AF FECTING FOREIGN TRAD E IN GOODS  ...............................  24 
- Industrial policy, including subsidy policies  ................................ ..........................  24 
- Technical barriers to trade, standards and certifi cations  ................................ ....... 25 
- Sanitary and phytosanitary measures  ................................ ................................ ... 26 
- Trade -related environmental policies  ................................ ................................ .... 29 
- Government procurement  ................................ ................................ .....................  30 
V. TRADE -RELATED INTELL ECTUAL PROPERTY REGI ME ................................ .............  34 
1. GENERAL  ................................ ................................ ................................ ...............  34 
- Responsible agencies for policy formulation and implementation  .........................  36 
- Membership of international intellectual property conventions an d of regional 
or bilateral agreements  ................................ ................................ .........................  36 
- Application of national and most -favoured -nation treatment to foreign 
 nationals  ................................ ................................ ................................ ...............  37 
2.  SUBSTANTIVE STANDARD S OF PROTECTION  ................................ .........................  38 
- Copyright and related rights  ................................ ................................ .................  38 
- Trademarks, including service marks  ................................ ................................ .... 39 
- Industrial designs  ................................ ................................ ................................ . 39 
- Patents  ................................ ................................ ................................ ..................  40 
- Plant variety protection  ................................ ................................ .........................  40 WT/ACC/TLS/ 4 
 
- 3 - 
 
  - Layout designs of integrated circuits  ................................ ................................ .... 40 
- Requirements on undisclosed information, including trade secrets and  
test data  ................................ ................................ ................................ ................  40 
3. MEASURES TO CONTROL ABUSE OF INTELLECTUA L PROPERTY RIGHTS  ................  41 
4. ENFORCEMENT  ................................ ................................ ................................ ...... 42 
- Civil judicial procedures and remedies  ................................ ................................ .. 43 
- Provisional measures  ................................ ................................ ............................  44 
- Any administrative procedures and remedies ................................ ........................  45 
- Criminal procedures  ................................ ................................ ..............................  45 
VI. TRADE -RELATED SERVIC ES REGIME  ................................ ................................ ...... 45 
3. MARKET ACCESS AND NA TIONAL TREATMENT  ................................ .......................  45 
- Limitations on the participation of foreign capital  ................................ .................  45 
- Measures providing for less than the treatment accorded to national services  
or service suppliers  ................................ ................................ ...............................  45 
VIII.  TRADE AGREEMENTS  ................................ ................................ .............................  46 
- Bilateral or plurilateral agreements relating to foreign trade in goods and  
trade in  services  ................................ ................................ ................................ .... 46 
- Economic integration, customs union and free -trade area agreements  .................  46 
ANNEX 3   ................................ ................................ ................................ ........................  46 
ANNEX 4   ................................ ................................ ................................ ........................  48 
ANNEX 27(F)   ................................ ................................ ................................ .................  49 
 WT/ACC/TLS/ 4 
 
- 4 - 
 
  II. ECONOMY, ECONOMIC PO LICIES AND FOREIGN T RADE  
2. Economic policies  
- Main directions of the ongoing economic policies  
Question 1 
Paragraph 21 : Please explain in more detail the Investment Reform Map (IRM). Does the 
IRM outline speci fic policies to be implemented? Does it include targets?   
 
Answer : 
The Investment Reform Map (IRM) is a standard Investment Policy and Promotion methodology of 
the World Bank Group (WB), which provides a framework to organize reform priorities and empower 
reform champions. Timor -Leste 's IRM was conducted by a WB team of professionals, through the 
International Finance Corporation (IFC), between September 2016 and March 2017, aiming at 
providing the Government with a logical framework to help (a) foc us discussion on relevant 
investment policy and promotion issues; (b) set priorities for reforms that reflect the country's 
needs; and (c) translate the country's investment vision into an agenda for concrete actions in the 
short (quick wins), medium and l ong terms.  
Timor -Leste 's draft IRM suggests the Government to target the following priority sectors for being 
both beneficial for the country and profitable for investors: (a) sustainable tourism, (b) strategic 
infrastructure, (c) construction materials, ( d) agricultural -based industries, and (e) agricultural 
crops. Therefore, short -term reforms are needed to develop those sectors and attract private 
investment. At the same time, the IRM suggests the Government to also target the following 
aspirational sect ors that could currently be beneficial for Timor -Leste but are not yet feasible or 
attractive for investors: (a) fisheries, (b) livestock, (c) downstream petrochemicals, and (d) 
garments. As such, medium and long -term reforms are needed.  
The IRM is not a legally binding document. It is a policy design and reform planning reference 
document whose content is supporting the Government of Timor -Leste in the design of the following 
key policy and strategy documents: (a) II Guide for Economic Reform and Growth 2 020 – 2023 
(GRFE  II); (b) Investment Policy; (c) Industrial Policy; and  (d) Trade Policy.  
Question 2 
In paragraph 25 , the Memorandum  notes that the "Government is also developing a 
Special Economic Zone (SEZ) in the special region of Oe -cusse."   
 
Please provide an update on the development of this SEZ.  What types of incentives will 
be/are provided to companies in the economic zone?  
Answer : 
The Constitution of the Democratic Republic of Timor -Leste establishes that the territories of "Oe-
Cussi Ambeno and Ataúro shall enjoy special administrative and economic treatment " (Article 5.3), 
whose characteristics and administrative competencies shall  be determined by the Law (Article 5.2). 
The Constitution also establishes that "Oecussi Ambeno shall be governed by a special administrative 
policy and economic regime " (Article 71.2) and "Ataúro shall enjoy an appropriate economic status " 
(Article 71.3).   
Based on the above constitutional statutes, Law No. 3/2014, of 18 June  2014, was enacted to 
formally establish the Oe -Cusse Special Administrative Region (SAR) and the Special Economic Zone 
for Social Market Economy (ZEESM), whose territory includes the enclave of Oé -Cusse and the island 
of Ataúro, as an expression of the Government of Timor -Leste's political willingness and commitment 
to use a new policy instrument — the Special Economic Zone (SEZ) — for poverty reduction and 
economic and social well -being in the country. The territory is governed by the Authority of the SAR 
and ZEESM, but the central government is duly represented, according to Article 71.1 of the 
Constitution. According to Article 2.2 of Law No. 3/2014, the Region is a territorial colle ctive entity WT/ACC/TLS/ 4 
 
- 5 - 
 
  governed by public law, endowed with administrative, financial and patrimonial autonomy adequate 
to the pursuit of the its objectives.  
ZEESM has made considerable progress since 2014, particularly on establishing an effective 
administrative an d regulatory framework as a SEZ, which has fostered rapid and quality 
infrastructure development that nurtures the enabling environment for regional economic 
development and diversification. Some initiatives have directly improved people 's lives, 
considera bly. Basic infrastructure is now in place (e.g. telecommunications, roads, bridges, airport, 
port, water and sanitation systems, schools, health clinics, electrical power grid, etc.).  
As far as incentives are concerned, the Authority of SEZ is empowered t o enact public policy 
measures, to be enforced within its own territorial limits, to exempt from payment of customs duties 
and respect for the principle of social market economy as a paradigm of economic growth by 
attracting investment, technology and esta blishment of companies, both domestic and foreign. 
Meanwhile, this is only applicable to goods imported to implement SAR 's projects and programs, in 
accordance with Article  38.3 of the Law No. 3/2014  which establishes : "the importation of goods 
intended to  implement economic and social development projects and programs in the territory of 
the Special Zone shall be exempt from payment of any customs duties. " 
As such, any public measures and rules to exempt from payment of customs duties must be 
regulated and  established according to the Customs Code (Decree -Law No. 14/2017 of 5 April  2017) .  
To date, only two public projects have benefited from customs exemption, namely : (i) the 
construction of a Clinic and acquisition of two Mobile Clinics; and (ii) a Hotel, both funded by the 
Special Administrative Region Development Fund. More detailed package of incentives is yet to be 
determined by the Authority, but it will certainl y comply with WTO rules, procedures and standards.   
- Monetary and fiscal policy  
Question 3 
In paragraph 28 , there is an explicit mention of the possibility of Timor -Leste developing 
its own curren cy in the future, although it is also stated that this is under review.   
 
Can the Government of Timor -Leste please provide additional information on these plans?  
Answer : 
There are no specific plans for Timor -Leste to develop its own currency in the foresee able future. As 
background information, the Central Bank of Timor -Leste (CBTL) originated from the Central 
Payment Office and became the Banking and Payment Authority in 2001. Both institutions were 
created by the United Nation Transitional Administration of East Timor (UNTAET), which 
administrated the country from October 1999 to May 2002. As stated in UNTAET Regulation 
No. 2001/14 of 20 July  2001, on the Official Currency and Legal Tender of East Timor, under Section s 
3.1 and 3.2, during the transition period:  "the official currency of East Timor is the US dollar and the 
Banknotes and coins of the US  dollar are the sole legal tender for all public  and private transactions 
in East Timor ".  
After restoration of independence in 2002, Decree -Law No. 20/2003, of 13 November  2003, was 
passed to reiterate the banknotes of the US Dollar and the centavos metallic coins as the sole legal 
tender for all publi c and private transactions in Timor -Leste. This Law is still in force.  
Meanwhile, on 13 September 2011, the Central Bank was formally established under Law 
No. 5/2011, of 15 June  2011, in accordance with Article 143 of the Constitution, to carry out its 
function, as most of other central banks, by strengthening its role in regards to monetary policy and 
play oversight role of the banking and financial system. Furthermore, as stated in Article s 20 and 
21.1 of this Law : "The monetary unit of Timor -Leste shall  be determined in accordance with the 
Constitution of the Democratic Republic of Timor -Leste and the central bank shall have the exclusive 
right to issue banknotes and coins ".  
BCTL considers that Timor -Leste 's exchange rate regime of official dollarizatio n has contributed to a WT/ACC/TLS/ 4 
 
- 6 - 
 
  stable macroeconomic context, especially in terms of stabilizing inflation expectations and price 
pressures in the country. This is supported by Article 79.1 of Law No. 5/2011  which establishes:  
"Until the definition of a proper monetary regime, according to the Constitution of the Republic, the 
US dollar is the currency unit of Timor -Leste. " 
As the monetary authority of Timor -Leste, endowed with legal, operational, administrative, and 
financial autonomy, CBTL bears the res ponsibility to undertake research to study the possibility of 
having Timor -Leste 's own currency, while strengthening domestic resource base and capacity 
needed to affectively undertake this mandate. This is also stated in Strategic Development 
Plan 2011 – 2030 (SDP):  "the human resources of the Central Bank will need to be developed to 
allow it to effectively undertake its mandate. This will include research and study into the merits of 
adopting our own currency " (page 187).  
Considering this mandate, since then BCTL has undertaken studies on the technical, physical and 
economical aspects for Timor -Leste to have its own currency. However, as already mentioned, there 
are no specific plans for Timor -Leste to develop its own currency in the foreseeable future.  
Note: After the Memorandum was submitted to the WTO, the CBTL introduced a bi -metallic coin 
worth "200 Centavos " (200-cent coin) in the market, corresponding to the United States two -dollar 
bill, besides the already existing bi -metallic coin worth "100 Ce ntavos " (100-cent coin), whose image 
is as follows:  
 
 
 
 
 
 
Question 4 
Paragraph 36  states that the VAT Law will be considered for approval in the near future . 
To that extent, when exactly will the law be approved and when will the law enter into 
force?  
Answer : 
The legislative process for approval of a VAT Law was started by the Government in the first semester 
2017, with submission of the legal package to the Council of Ministers, in the context of a Fiscal 
Reform. Considering the count ry's agenda for legislative elections at the time, held on 20 July 2017, 
the Council of Ministers found it more prudent to revisit the package after the elections. However, it 
is only now, under the current Government, that a joint fiscal and public financ ial management 
reform package is to be revisited, for subsequent submission to the National Parliament for approval 
of the respective legislative package. By respect of the sovereign decision of the National Parliament 
(approval) and the President of the R epublic (promulgation/enactment), it would not be appropriate 
for the Government to say when exactly the law will be approved and enter into force . 
- Investment regime  
Question 5 
In paragraph  47, the Memorandum  notes that "the Private Investment Law also grants 
tax and customs benefits and incentives to investment with the minimum value of 
US$50,000 for resident Timorese investors, US$1,500,000 for foreign investors, and 
WT/ACC/TLS/ 4 
 
- 7 - 
 
  US$750,000 for partnership agre ements between foreign investors and resident Timorese 
investors. "  
 
Please explain the rat ionale for the different levels.  
Answer : 
Paragraph 47 refers to the Private Investment Law No. 14/2011, of 28 September  2011, which 
entered into force in Timor -Leste  on 29 September 2011 (and was in force when the Memorandum 
was approved and submitted to the WTO). The rationale contained in its Article 10 was then a 
positive discrimination for local investors in a relatively young country that restored independence 
after 24 years of resistance, with an embryonic private sector that required much promotion and 
stimulus. Such incentives were superseded, by the new Private Investment Law No. 15/2017, of 
23 August  2017, which entered into force on the 1 January 2018.  
The n ew Private Investment Law determines fair treatment, in its:  
Article 10.1 : "all investors, regardless of nationality, enjoy the same rights and are subject to the 
same duties and obligations, in accordance with the law, " even though reiterating restrictions, such 
as in Article 10.2: except "the right to ownership of the land, under the terms of the Constitution 
and the law. " 
Furthermore, according to Article 10.3: "All investors have equal opportunities for access to the 
special benefits provided for in accordance with the criteria set out therein, in particular in 
Article  2.3" which determines:  "Excluded from the scope of tax and customs benefits provided for in 
this law are investments made by legal persons in which more  than 50% of their capital is held by 
the State or by another public corporation " (Article  2.3). 
In addition, as per Article 10.4: "Exceptions to the preceding paragraphs are cases of investments 
which, by their nature or size, are the subject of special a greements, the investments of national 
citizens who may receive most favorable support and treatment from the State, and favor 
investments which contribute to national development priorities, in particular in special economic 
zones and special industrial a reas."  
This latter exception is mentioned in paragraph 48 of the Memorandum . 
Question 6 
Paragraph 47 : The Private Investment Law grants tax and customs benefits and 
incentives to investment with a minimum of USD 50,000 for resident Timorese investors 
and USD 1,500,000 for foreign investors. Also, under Annex 3, before submitting a request 
to Trade Invest fo r receiving an investor certificate, investors must pay a fee of US D 500 
for nationals and US D 2,000 for foreign investors.   
Therefore, does the Government of Timor -Leste plan to change these different 
requirements in the future so nationals and foreign in vestors can have equal access to the 
investment benefit scheme?  
Answer : 
As mentioned above, in response to Question 5, the Private Investment Law referred to in 
paragraph  47 is Law No. 14/2011, of 28 September  2011, that was  in force in Timor -Leste until 
31 December 2017. The rationale contained in its Article 10 was then a positive discrimination for 
local investors in a relatively young country that restored its independence in 2002.  
Meanwhile, the new Private Investment Law No. 15/2017, of 23 August  2017 determines:  
Article 44 (Exemption of Fees ): "no fee is charged for the services of promotion and facilitation of 
the investment rendered, as well as for processing the application for granting declaration of be nefits 
and negotiation of special investment agreement. "  WT/ACC/TLS/ 4 
 
- 8 - 
 
  This new provision was adopted to better comply with the principles of equal treatment and non -
discrimination. This way, the new regime (which entered into force on 1 January 2018) grants equal 
treatment between any investors independently their origin (national or foreign), and promotes an 
initial perspective for the foreign investors that since the beginning of the administrative process 
they will treat as equals in comparison with national investo rs. 
Question 7 
Paragraph  49: Regarding the Negative Investment Law, are there any other sectors than 
"postal services, public communications, weapon production and distribution, and in 
zones that may affect protected areas " where investment is prohibited or res tricted?  If 
so, which sectors? How did the G overnment determine which sectors to prohibit or restrict 
investment?  
Answer : 
The determination of the negative list of investments is done by appropriate sectorial legislati on, 
after wide consultation and consensus building process, including discussions with the Chamber of 
Commerce and Industry of Timor -Leste (CCI -TL), investors and other economic operators and 
stakeholders.  
While there is not yet any single Negative Investm ent Law as such, the legal provisions restricting 
investments are contained in several laws.  
In addition to the statement in paragraph  49 of the Memorandum , which mentions economic 
activities subject to specific legal regimes, the Government of Timor -Leste  informs the Working Party 
that, based on the  new Private Investment Law No. 15/2017, of 23 August  2017, provisions related 
to the negative list are as follows:  
Article 9.1: "Investments or reinvestments in Timor -Leste in any economic activity, provided it  is 
permitted by law, is free and does not require prior authorization in addition to the procedures 
established in the legislation in force. " 
Article 9.2: "Exceptions to the preceding paragraph are economic activities expressly reserved for 
the exclusive ownership or exploitation of the State. "  
Article 9.3: "It is the obligation of the government agency responsible for the promotion, facilitation 
and monitoring of private investment and exports to draw up, in accordance with the legislation in 
force, the list of activities and sectors prohibited or restricted for national investors, for foreign 
investors, and that cannot be object of incentives provided for in this law. " 
On the basis of Article 9.3 of the above -mentioned Private Investment Law, TradeInvest , the 
Investment and Export Promotion Public Agency, is compiling information on the sectors prohibited, 
reserved/restricted and screened in the legislation in Timor -Leste, to propose a document on the  
Negative List of Investments to be adopted by the Gove rnment and made available to all investors.  
Question 8 
Paragraph 54 : The Government of Timor -Leste promotes its investment through a Public 
Private Partnership  (PPP). 
Please elaborate how will Timor -Leste improve its legal framework and enabling 
environment to attract the increasing investment through PPP while there are some 
challenges in doing business in the country, according to its international rankings?  
Answer : 
As stated in paragraph  7 of the Memorandum , Timor -Leste i s a relatively young country, which 
restored independence in 2002. It is, therefore, understandable that the country is ranked so low 
(No. 181 among 190 countries) in the 2020 Doing Business Report. However, the Government is not 
at all happy with such a r anking, and is fully committed to enhancing human capital development, WT/ACC/TLS/ 4 
 
- 9 - 
 
  enforcing the rule of law, and establishing effective public management institutions, both at the 
central and local government levels.  
To that end, modern legislation is being enacted to streamline effectiveness of public institutions and 
enhance business enabling environment. For example, as stated in paragraph  54 of the 
Memorandum , there is a legal framework for Public Private Partnerships, since the Government 
ensures participation o f the private sector in building infrastructures in the country on the grounds 
of public tender, transparency and fair competition. Decree -Law No. 42/2012, of 7 September  2012, 
amended by Decree -Law No.  2/2014, of 15 January  2014, establishes the Legal Regime for Public 
Private Partnerships. More specifically, Decree -Law No. 42/2012  establishes, in its:  
Article 1: "This Decree -Law defines the principles and instruments for the establishment of 
partnerships between the Government and private entities involved in public infrastructures, as well 
as the expertise and procedures for identification, evaluation, procurement and construction of such 
infrastructures. " 
There have been important expressions of interest from private companies  to enter into PPP 
contracts with the Government, despite the existing challenges in Doing Business. For example, a 
PPP contract has already been signed with the Bolloré Group and construction is under way to build 
and operate the Tibar Port, close to Dili , the capital city, expected to be the country 's main seaport.  
Furthermore, the Government is also promoting several avenues of economic reform, through which 
modern legislation is being enacted and concrete actions are being taken to significantly improve  all 
doing business indicators. Ongoing reform actions to improve the business environment in Timor -
Leste may be summarized as follows:  
Timor -Leste acknowledges the need to develop a comprehensive business enabling environment 
program to be formulated and implemented without delay. This requires:  
• a broad and systemic approach, designed from the perspective of the private sector;  
• effective stake -holder coordination (including with the donor community) and planning 
with relevant national actors, as well as c lear targeted priorities; and  
• the involvement of wide range of public sector agencies (Ministries of Agriculture, 
Commerce, Tourism and Industry, Public Works, Education, Science and Technology, 
SERVE, SEFOPE, IADE, and many others).  
In policy design, the Government is identifying several areas to support. Hence, a government wide 
private sector approach is taken to include strengthening the institutional landscape, creating key 
public infrastructure (for example, industrial park, airp ort expansion), taxation, improving the legal 
and regulatory environment, creating access to credit, investment promotion, strengthening the 
labor market, and small and medium enterprise development, training and education of the skilled 
and unskilled work ers. In this process, the Government recently initiated a transparent public -private 
dialogue process which facilitates participation, diagnosis, and coherent approach to solving 
problems confronting private sector development.  
However, a sectoral approac h is also needed in the country, to strengthen (labor) productivity and 
competitiveness in specific modern economic activities with capacity to generate substantial 
employment, where relative comparative advantages can be exploited. The Government has not yet 
adopted such a program but is aware it needs to create one. The challenges involve coordination, 
prioritization and therefore allocation of scare resources through the budget.  
In terms of the regulatory environment, in the short -term three business re gulation areas are 
emphasized in the ongoing Public Administration Reform Program for improvement: (i) enforcing 
contracts and (ii) access to credit were two of the lowest scoring areas in the doing business survey. 
So, it  is logical to start where you are  worse. Starting a business / licensing is the third area . The 
most administrative areas - there is the closest fit to public administration. These areas are 
administrative in nature and most likely to have an immediate impact in the economy.  
Business lic ensing is an important regulatory function of the G overnment, that when improved can WT/ACC/TLS/ 4 
 
- 10 - 
 
  save costs to businesses and it can remove barriers to entry and competition. The Government is 
committed to reducing the number of days required from 13 (on average) to 7  and reducing the 
number of procedures. With the technical assistance of the International Finance Corporation (IFC) 
and MRLAP, SERVE concluded a licensing inventory which listed sixty -one (61) licen ces and other 
procedures that are currently required to t he business sector. Once the inventory is concluded, the 
Government will engage in due consultation with private sector and the civil society representatives 
and take deemed action to ease and streamline the licensing system and eliminate the unnecessary 
burden on business.  
Contract enforcement is essential to facilitate exchange and to promote investment, trade, economic 
development. The program is committed to reducing the time and costs of enforcing contracts. To 
act in the indicator "enforcing contract s", the Government has an ongoing legislative process leading 
to a Law on Arbitration together with a Resolution on accession of Timor -Leste to the 1958 New York 
Convention on the Recognition and Enforcement of Foreign Arbitral Award s. Also, given the more  
challenging process of having collaterals based on lands and properties, the Government intends to 
launch legislative processes of a Secured Transaction Law based on the UNCITRAL model and 
strengthening the system of collaterals based on movable assets. T he Government also intends to 
launch a similar process leading to a Law on Mediation.   
Finally, the other business regulation area will be addressed since access to credit is instrumental 
for business and enterprise formation, increased investment and employment.  The Government 
intends to capitalize the National Commercial Bank of Timor -Leste (BNCTL) , as per  Decree -Law 
No. 16/2019, of 10 July  2019, in order to provide more credit. Moreover, the credit guarantee system 
was launched in June  2019 by Central Bank (CBTL) to allow small to medium enterprises to have 
access to credit system, which is limited to Timorese citizens operating in the areas such as 
agriculture, tourism, manufacture industry and transportation. BNCTL has also declared t o 
participate in the Credit Guarantee System.   
- State ownership and privatisation  
Question 9 
In paragraph  57, the Government of Timor -Leste states that t here are no governmental 
or non -governmental enterprises with exclusive rights or privileges in export or import 
operations.  However, Article XVII  of the GATT 1994  defines STEs as having "exclusive or 
special rights or privileges ".  
 
Please clarify whether there are any state enterprises  with any exclusive rights and 
privileges as well.  Also, are there any state enterprise that ha s any exclusive or special 
rights or privileges in terms of financing as compared to commercial enterprises, whether 
foreign or domestic?  
Answer : 
As stated in paragraph  57 of the Memorandum , Timor -Leste does not currently have State Trading  
Enterprises (STE) or Private Enterprises (PE), with exclusive rights or privileges in export or import 
operations. There is no STE or PE with "exclusive or special rights or pr ivileges in terms of financing 
as compared to commercial enterprises, whether foreign or domestic. " Public funds to STEs are 
made available by way of Public Transfers, in exceptional circumstances.  
The Government observes general principles of non -discrimi natory treatment for public policies 
affecting imports or exports by private traders. Such principles will always be observed when 
eventually creating STEs in Timor -Leste in response to market needs not met by the private sector.  
Aware of "exclusive or special rights or privileges " granted to STE and Timor -Leste 's future WTO 
obligations, and in respect of those governmental measures affecting state trading enterprises, the 
Government expects to conduct a thorough review of the existing publi c policy measures with regard 
to the submission of notifications on STE to the WTO Council for Trade in Goods, on the basis of the 
existing understanding on the issue, and aiming at ensuring the maximum transparency possible in 
such notifications, so as to  permit a clear appreciation of the manner of operation of the enterprises 
notified and the effect of their operations on international trade.   WT/ACC/TLS/ 4 
 
- 11 - 
 
  - Pricing policy  
Question 10 
Paragraph 58 : Timor -Leste has at leas t seven  legal statu tes concerning pricing policy.  
We understand  that some legal statu tes are intended to stipulate maximum prices (price 
ceilings), while some statues are intended to set minimum prices (price floors). We 
therefore request  for further clar ification on which statues have minimum price 
requirements, and what scope of goods covered by such statues. What mechanisms are 
used to maintain the prices above market prices?  
Answer :  
As a young country, the pricing policy in force in Timor -Leste is just an interim measure, to safeguard 
normal supply of basic food stuffs at affordable and fair prices for the population. The country imports 
most of its basic consumption goods from overse as. It is, therefore, crucial for the existing policies 
to prevent price speculation, lack of supply of essential goods, inflationary price rise and abnormal 
increase in prices.  
There is no policy fixing minimum prices (or price floors) in Timor -Leste. Th e minimum price is fixed 
by inherent market mechanisms.  
The purpose of the set of legal texts applicable to the issue is to limit maximum prices, following the 
logic determined by Decree -Law No. 28/2008, of 13 August  2008, on "Public Supply of Essential 
Goods and Management of the Negative Effects of Inflation ":  
Article 1 (Object and Scope ): "1. Without prejudice to the principle of free market and the resulting 
supply and demand -based pricing mechanism, as well as to the freedom of initiative and corporat e 
governance, it is an essential Government objective to guarantee the population the ability to obtain 
essential goods at sustained or subsidized prices. " 
The main complementary legal text on the issue is Decree -Law No. 29/2011, of 20 July  2011, on 
"Fair Price ", which determines:  
Article 5 (Price Schemes): "1. The prices of goods and services sold or supplied may be subject to 
the following regimes: a) Fixing the maximum prices: i. - Retail sales by wholesalers; or ii. - Sale to 
the final consumer, i.e.  to the public; b) The establishment of marketing margins; c) Contracted 
prices; d) Monitored prices; e) Free prices, whenever they are not subject to previous schemes. " 
In addition, the Government of Timor -Leste, through the current Ministry of Tourism, C ommerce 
and Industry (MTCI), runs the "Povu Kuda, Governu Sosa " (People Cultivate, Government 
Purchases) Program, through which prices are set for purchasing agricultural commodities from local 
farmers, applicable only to rice and maize, which are basic ce reals for food security in the country. 
As such, the Government of Timor -Leste establishes the price for MTCI to purchase those cereals, 
as well as the sale price at municipal markets, calculated according to the distance for each 
municipality. The most re cent legal text s on rice  and maize  are Ministerial Order  No. 32/2017, of 
17 May 2017, on "Regulation of Price for of Rice for Re -Sale" and Ministerial Order  
No. 6/MTCI/III/2011, of 23  March  2011, on "Sale Price and Distribution of Locally Produced Maize. "  
Once again, as stated in Decree -Law No. 29/2011 , Article 1 (Principles), Government intervention 
to ensure fair price in the country is of a transitional nature and shall be aimed at correcting market 
prices and the risks induced in the access of the population to basic goods.  
Question 11 
Paragraphs 58  – 59 state that the Government of Timor -Leste uses price control policies 
"to increase social and economic justice with respect to basic products and to facilitate 
access to these products through fixing fair prices." Furthermore , the Memorandum  state s 
that "the intervention by the Government is done only in exceptional circumstances and 
is applicable only to certain goods and services that are deemed vital for the subsistence  WT/ACC/TLS/ 4 
 
- 12 - 
 
  of the country's most vulnerable families." Also, the Memorandum  states that for a list of 
products and services, "the Government intervention is aimed at controlling speculation 
and mark -up of retail and sales prices in the domestic market at large".  
Could the Government of Timor -Leste provide information on how fair prices are 
determined?  
What "exceptional circumstances" would warrant a price intervention?  
Answer : 
In addition to the reply to Question 10 above, the Government of Timor -Leste reiterates tha t the 
existing fair price policy is a temporary measure,  as per Decree -Law No. 29/2011, of 20 July  2011, 
on "Fair Price ": 
Article 1 (Principles): "2. The regimes and intervention measures established and set out in the 
present diploma shall be of a transit ional nature and shall be aimed at correcting market prices and 
the risks induced in the access of the population to basic goods, by reintroducing the fair price of 
these goods and services. " 
The legitimacy of such fair price policy is derived from the Con stitution, whose Section 115 
(Competence of the Government) determines : "1. It is incumbent upon the Government: (…) e) To 
regulate economic and social sector activities " as well as to ensure consumer protection (Section 
53.1). " 
Decree -Law No. 29/201 1 determines the following exceptional circumstances for a price 
intervention, as per its:  
Article 1.3:  
3. Discretionary criteria regarding intervention in the price of basic goods shall be 
measured through the observation of one or more of the following s ituations:  
a) Situations of illicit distortion of market prices through monopolies, cartels or collusion 
for artificial price setting.  
b) Substantial variation of prices with speculative and unjustified profit margins given 
the national and international  climate.  
c) Signs of hoarding of basic goods.  
d) Other anomalous situations of market prices which do not justify or which are not 
within the scope of intervention under the legal regime of public supply. 4. In the price 
references in the import stage, the CIF (Cost, Insurance and Freight) value prevails or 
in case of doubt, the customs value.  
The modalities and enforcement of the price regimes are established in Article 12 of Decree -Law 
No. 29/2011, as follows:  
1. The setting of maximum prices is the re sponsibility of the Prime Minister, or 
whomever he delegates, on a proposal from the Ministry of Tourism, Trade and Industry.  
2. The subject of goods or services to other price regimes is the responsibility of the 
Minister of Tourism, Commerce and Industry , by ministerial diploma, safeguarding the 
powers of other entities with regard to medicines and fuels.  
3. The establishment of price regimes must be previously announced and published by 
ministerial order, containing the summary of the grounds of interven tion, the term of 
the same, the products covered, and the specifications referred to in the present 
diploma.  WT/ACC/TLS/ 4 
 
- 13 - 
 
  4. The price regimes are in force until they are expressly superseded and/or replaced 
by ministerial diploma.  
5. The goods and services subject to the respective price regimes, attached to this 
diploma, may be updated, suspended or superseded by ministerial diploma, under the 
terms of paragraphs 1 and 2.  
In a nutshell, even though there is a price policy in place, it is used exceptionally,  to the point that 
it was only enforced once (in 2017, under exceptional circumstances). For further clarification on 
this issue, the Government of Timor -Leste kindly requests the Working Party to refer to the 
applicable legal texts whose copies are includ ed in the Legal Action Plan (LAP).  
- Competition policy  
Question 12 
In paragraph  62, the Government of  Timor -Leste references a newly -passed Consumer 
Protection Law (No.  8/2016).   
Please provide a copy of this law for review.  
Answer :  
A copy of the Consumer Protection Law No. 8/2016, of 8 July  2016, has been provided to the Working 
Party. As per Article 1 (Object) , this Law : "establishes the legal regime of consumer protection, by 
defining the role of the State, consumer rights and involvement of consumer associations. " 
To recall , the Constitution of the Democratic Republic of Timor -Leste guarantees  that: 
Section 53 (Consumer Rights) :  
1. Consumers have the right to goods and services of good quality, t o truthful 
information and protection of their health, safety and economic interests, and to 
reparation for damages.  
2. Advertising shall be regulated by law, and all forms of concealed, indirect or 
misleading advertising are prohibited.  
4. Domestic trade  in services including value an d composition of foreign 
direct  investment  
Question 13 
Paragraph  70: please reflect in the Memorandum  that the Private Investment Law has not 
only been approved by the National Parliament, but also been promulgated. In addition, 
please provide the Private Investment Law to the Working Party for review.  
Answer : 
As already men tioned, the new Private Investment Law No. 15/2017, of 23 August  2017, entered 
into force on 1 January 2018. The formal approval process is an internal affair of the Democratic 
Republic of Timor -Leste, which is inherent to separation of powers and checks a nd balances in the 
political system. A copy of the Private Investment Law has been submitted to the kind attention of 
the Working Party.  WT/ACC/TLS/ 4 
 
- 14 - 
 
  III. FRAMEWORK FOR MAKING  AND ENFORCING POLIC IES AFFECTING FOREIG N TRADE 
IN GOODS AND TRADE I N SERVICES  
- Powers of executive, legislative and judicial branches of Government  
Question 14 
Paragraph  79: how many terms can a member of the Timor -Leste Parliament serve?  
Answer : 
The Constitution of the Democratic Republic of Timor -Leste grants the right to political participation 
in Section 46: "1. Every citizen has the right to participate in the political life and in the public affairs 
of the country, either directly or through democratically elected representatives. "  
The Constitution also grants the principal the following principle:  
Section 64: "No on e shall hold any political office for life, or for indefinite periods of time. "  
However, the Parliament being a collegial organ of sovereignty, the Constitution does not expressly 
limit the terms of an elected Member of the National Parliament.  
Elections  to the National Parliament (Legislative Elections) are based on a single nationwide 
constituency by Political Party -list, whereby a proportional representation voting system applies, in 
which multiple candidates are elected through allocations to an elect oral list. Political Parties submit 
lists of candidates to the Court of Appeals, acting as the Supreme Court, to be elected from a closed 
list system.  
In addition, the Constitution determines, in:  
Section 93 (Election and Composition): "1. The National Par liament shall be elected by universal, 
free, direct, equal, secret and personal suffrage. […] 4. Members of the National Parliament shall 
have a term of office of five years. " 
In summary, the term in office of a Member of the National Parliament ends when (i) the member 
is not made part of a Political Party list; (ii) if included, the list does not get enough votes to ensure 
mandate renewal; and (iii) if the Parliament is dissol ved, as per Section 85 (f) of the Constitution, 
and conditions (i) and (ii) are met.  
For additional information about Members of the National Parliament, kindly consult Law No. 5/2004, 
of 28 April  2004 (Status of Members of the Parliament) . 
- Legislative pr ograms or plans to change the regulatory regime  
Question 15 
Paragraph s 98 – 99: with regard to the Private Investment Law, the Commercial 
Companies Law, and the Commercial Registration Procedures, has the Government of 
Timor -Leste adopted any implementing regulations, or are any planned?  
If so, are drafts made available to the public for comment, and how can an individual find 
information about the drafts?  
Answer : 
Procedures inherent to the Private Investment Law No. 15/2017, of 23 August  2017, have been duly 
regulated by Government Decree No. 2/2018, of 21 February  2018, as first amen ded by Government 
Decree No. 4/2019, of 29 May  2019, which:  
• Approves the minimum investment and reinvestment values for the national investor and WT/ACC/TLS/ 4 
 
- 15 - 
 
  for the foreign investor, under the terms provided for in Article 34 of the Law;1  
• Defines the procedure for requesting and issuing the declaration of benefits, pursuant to 
Article 36 of the Law ; 
• Provides for the creation of the governmental entity responsible for promoting, facilitating 
and monitoring private investment and exports and for issuing the declaration of benefits 
and negotiating special investment agreements, in accordance with the pro visions of 
Article 42 of the Law ;  
• Defines terms for registration of investments made in the country, under the terms 
provided for in Article 45 of the Law ; 
• Defines rules for termination of Investor Certificates initially issued under Law 
No. 14/2011, of 2 8 September  2011;  Law No. 4/2005, of 7 June  2005, or Law No. 5/2005, 
of 7 June  2005; 
• Defines the procedure for all investor certificate issuing processes initiated before the Law 
came into force and which are still pending ; and  
• Approves other complementary  regulations necessary for the implementation of the Law, 
under the terms provided for in the respective Article 50 and the support to be provided 
to investors.  
With respect to the Negative Investment List, mentioned in Article 9.3 (list of activities and sectors 
that cannot be exercised by national investors, by foreign investors and that cannot be object of 
incentives – Negative List, TradeInvest Timor -Leste), this issue has been addressed in great detail 
in the reply to Question 7. In addition, it is wor th mentioning that TradeInvest is in the process of 
compiling and summarizing the Negative Investment List in just one document, before publication 
and dissemination to potential investors.  
Concerning public hearings, several sessions were held with repres entatives of the private sector 
(the Chamber of Commerce and Industry of Timor -Leste – CCI-TL, business owners and 
entrepreneurs, Labor Unions, Universities, etc.) to share drafts of the following legal initiatives now 
duly enacted and published in the Off icial Gazette: (i) Private Investment Law No. 15/2017; (ii) 
Commercial Companies Law No. 10/2017, of 17 May  2017; and (iii) Commercial Registration 
Procedures Decree -Law No.  16/2017, of 17 May  2017.  
The respective implementing regulations have all been ap proved, published and are in force, 
addressing the following issues:  
• Commercial Companies Law No. 10/2017, of 17 May  2017: (i) Article 7.8 (templates for 
constitutive acts of companies): Government Decree No. 28/2017, of 12 July  2017; (ii) 
Article 71.5 (cr iteria for designation of external auditor): Government Decree No. 27/2017, 
of 12 July  2017; (iii) Article 87.11 (official forms for mandatory books); and (iv) 
Article  224.6 (official forms for share titles).  
• Commercial Registration Procedures Decree -Law N o. 16/2017, of 17 May  2017: (i) 
Article  20.2 (company registration forms); and (ii) Article 37.3 (template for Commercial 
Registration Certificate).  
With respect to public consultations during legislative processes, in general, the Rules of Procedure 
of the National Parliament No. 1/2016, of 11 May  2016, determine, in Article 80 (Public Hearings)  
that:  
 
1 Special benefits provided for in articles 24 and 25 of the Law, are only granted to investments or 
reinvestments whose amount is equal to or greater than: a) US D 50,000.00 (Fifty thousand US Dollar) in the 
case of a national investor; b) US D 500,000.00 (five hundred thousand US Dollar) in the case of a foreign 
investor; c) US D 250,000.00 (two hundred and fifty thousand US Dollar) in the case of joint venture 
association contracts or legally permissible partnerships between foreign and national resident investors, in 
which they control at least 75% of the shareholdings of the companies invo lved. WT/ACC/TLS/ 4 
 
- 16 - 
 
  1. Committees may hold public hearings with public entities and civil society to discuss 
legislative matters under consideration, as well as to address mat ters of relevant public 
interest, pertaining to their area of activity.  
2. The decision to hold public hearings is the exclusive competence of the committee, 
which shall decide by an absolute majority of the Members present by ordinary vote.   
In addition, the same Rules of Procedure make a special reference to legislative initiatives on labour 
issues, in:  
Article 102 (Labor legislation ): "In the case of labor legislation, the committee shall promote the 
assessment of the draft or the draft law by trade union or employers' organizations and the 
Government, stipulating a deadline for the purposes of Article 80. " 
As for the Council of Ministers, its Rules of Procedure , approved by Government Resolution 
No. 51/2017, of 13 December  2017, determine:  
Article 15 (Confidentiality ): "1. Except for the purposes of negotiation or hearing to be carried out 
in accordance with the law, it is forbidden to disclose any projects presented or to be submitted for 
consideration at a meeting of the Council of Ministers. […] 3. The offices of the members of the 
Government shall take the necessary measures to prevent any violation of such confidentiality. "  
Consequently, holding public hearings or disclosing draft legislation is just a possibility left opened 
to the Council  of Ministers or to Committees of the National Parliament in the legislative process.  
Notwithstanding, it has been a standard practice of the Government to hold public consultations with 
relevant stakeholders, whenever considered as being desirable, as a methodology to socialize 
information, gather contributions and make legal and policy documents more widely understood and 
accepted. In so doing, transparency, national unity and social cohesion are enhanced, with valuable 
contribution to the ongoing sustai nable development process.  
Question 16 
With regard to the new laws being drafted – the Insolvency Law, the Arbitration and 
Mediation Law, the Commercial Law, and the VAT Law – please provide drafts for the 
Working Party  to review.  
Answer : 
A short summary of each requested legal texts is as follows:  
• Insolvency Law: provides for the legal regime for the recovery of companies and 
proceedings for the declaration of insolvency as part of the strategy to create a legal 
framework conducive to growth of businesses operating in a socially and economically 
responsible market. When it is approved the Law will complete, in a structured and 
coherent manner, a relevant part of the legal framework applicable to companies, 
continuing to del iver on the Program of the Government, which refers to the need to invest 
in the development and growth of the economy and the need to develop a dynamic market 
economy. This should be based on a solid, modern and diversified private sector, 
supported by a legislative reform that will attract and stimulate private investment.  
• Arbitration Law and Mediation Law: will establish alternative resolution of trade disputes 
mechanisms, in addition to the Courts. They will also regulate the mediation and 
conciliation of trade conflicts aimed at encouraging private sector investment. The 
Government is also supporting the enactment of a Resolution (by the National Parliament) 
on accession of Timor -Leste to the New York Convention on International Arbitration.  
• Value -Added  Tax (VAT) Law: the VAT is a tax on consumption that is collected in each 
stage of the production process. The VAT can help Timor -Leste achieve a number of 
objectives, such as: modernize the tax system and improve collections; raise revenues 
more efficient ly; create a level -playing field and reduce the cost of doing business; improve WT/ACC/TLS/ 4 
 
- 17 - 
 
  the business environment and attract investment; and reduce informality in the economy. 
The VAT should be part of a "package" of tax policy reforms linked to an enhanced social  
and investment spending system as well as a modern tax administration. The main idea 
is to both improve the sources of financing for social spending, and to improve the 
investment climate, while reducing the costs of doing business in Timor -Leste. The 
domestic resource mobilization agenda is also closely linked to the need to restrict 
withdrawals from the Petroleum Fund beyond the Estimated Sustainable Income to 
productive investments.  
• Commercial Companies Law: has already been enacted, as Law No. 10/2017,  of 17 May, 
whose copy has been sent to the Working Party. It is a legal regime that simplifies and 
facilitates the creation of small and medium -sized commercial companies and creates a 
complete and secure legal framework that offers the proper support to the complex 
organization of the modern multinational commercial company. This Law revokes 
Law No. 4/2004, of 21 April.  
With respect to the Insolvency Law and the VAT Law, the Government has a legislative process 
under way, which starts with a draft legisl ative policy, that will guide the drafting of the Law. It is a 
general document; therefore, it is premature to share its content with the Working Party since the 
Government has not yet discussed the issue and therefore does not have a final position on the  way 
forward. The legislative process for the VAT Law has been delayed. The Working Party will be duly 
notified when final drafts become available.  
IV. POLICES AFFECTING TR ADE IN GOODS  
- Trade facilitation  
Question 17 
In paragraph  110, the Memorandum  lays out a goal of Timor -Leste becoming the "single 
customs window " for trade between ASEAN and CPLP nations.  
Please provide additional information about this goal.  
Answer : 
Timor -Leste General Directorate of Customs has been implementing the Automated System Customs 
Data Administration (ASYCUDA) software since 2003. The Customs Director sought UNCTAD 's 
assistance to upgrade the system to ASYCUDA World. To t hat end, a project was signed and 
commissioned in 2014 to take advantage of the latest technology to facilitate customs business 
processes. Timor -Leste has just adopted the ASYCUDA World System as the IT platform for the 
National Single Window facility to improve trade facilitation, as determined by Government 
Resolution No. 24/2017, of 17 May 2017 .  
The ASYCUDA system allows the trader or transporter to, at once, submit to the authorities involved 
in border controls all data needed to determine admissibili ty of goods in a standardized format, and 
at a single portal, by using ICT and dataset standards commonly accepted by the relevant public 
and private stakeholders. In particular, the use of internationally accepted standards, such as the 
Harmonized System of Commodity Description and Coding, the World Customs Organization Data 
Model and the Unique Consignment Reference are important.  
Timor -Leste is a member of CPLP and an observer to ASEAN. Timor -Leste is currently planning to 
promote a Single Window for tr ade across CPLP and ASEAN countries.  
Question 18 
Paragraph  113: we take note that the Government of Timor -Leste has adopted a new 
Customs Code.  
Please identify any implementing regulations that are requi red as a result of the new 
Code.  WT/ACC/TLS/ 4 
 
- 18 - 
 
  Answer : 
The new Customs Code, Decree -Law No. 14/2017, of 5 April  2017, entered into force on 4 June  2017. 
A copy of the Customs Code has been submitted to the kind attention of the Working Party.  
In a nutshell, the new Customs Code is the result of a major effort of the Government to update 
legal texts applicable to customs issues, integrate scattered legislation in just one Code, support and 
implement trade facilitation and, as much as possible, as stated in paragraph  113 of the 
Memorandum , ensure f ull compliance with the Kyoto Convention of the World Customs Organization 
(WCO). In so doing, the Government expects the Customs Code to also be in full compliance with 
the WTO Trade Facilitation Agreement (TFA).  
Based on the above, the Customs Code now f rames and guides all subsidiary customs legislation 
that needs to be produced. The Code devotes Title XXI (Final Provisions) to the timetable, 
implementing regulations, implementing measures and complementary legislation. Examples of 
implementing regulatio ns, implementing measures and complementary legislation inherent to the 
Customs Code are as follows:  
• Article 2 (Good Administrative Practices): "1. Within one year from the date of entry into 
force of this Decree -Law, the Government approves, by Resolution  of the Council of 
Ministers, a 'Guide to good administrative practices'. 2. The guide mentioned in the 
preceding paragraph is a standard reference document for conducts by the Public 
Administration. " 
• Article 15 (Publication):  
1. Without prejudice to the p rovisions of the following paragraph and upon 
proposal from the Director General [of Customs], the Minister approves the 
forms relating to customs declarations, to the collection of customs tax 
revenue, to the application of the customs valuation system of  goods or to 
the fulfilment of the duties established in this Code and other customs 
legislation in force. 2. Forms for the customs control of persons, goods and 
means of transport shall be approved by the Director -General. 3. The 
updated list of all forms  in force as well as the places where they can be 
purchased should, wherever possible, be published on the official website 
of the Ministry of Finance or Customs.  
• Section III (Representative Professional Public Association of Official Dispatchers), 
Article  43 (Representativeness ): 
1. The representative association of official brokers is the professional and 
representative association of the respective professional card holders. 
2. Membership in the association is mandatory as an indispe nsable 
condition for the official broker to be able to exercise his profession. 3. The 
Statutes of the association, as well as the respective amendments, are 
approved by a proper diploma and published in the Official Gazette.  
• Article 79 (Records and Paymen ts): 
1. It is the responsibility of the Director General, by way of notice published 
in the Official Gazette, to approve: (a) documents required or established 
by customs legislation which may be transmitted through a stipulated 
electronic record; b) Payme nt required or established by Customs 
legislation which may be made through a stipulated electronic format; 
c) Customs information system for which such documents may be 
transmitted, or by means of which such payments may be effected. 2. The 
electronic tra nsmission of documents or the payments indicated in the 
previous paragraph are subject to authorization by the Director General 
according to article 80, or other conditions that may be stipulated. 3. The 
Director General may determine that, the documents o r payments referred 
to in paragraph 1 of this article be transmitted in electronic form, without WT/ACC/TLS/ 4 
 
- 19 - 
 
  prejudice to any exceptions that may be stipulated.  
• Article 179 (Prohibited Import Goods): "Without prejudice to the provisions of special 
legislation and acts  of international law subscribed by the Government of Timor -Leste, it 
is prohibited to import certain goods to be defined in a list approved by the Minister. " 
• Article 180 (Conditional Import Goods): "Without prejudice to the provisions of special 
legislati on and acts of international law subscribed by the Government of Timor -Leste, 
only the goods in a list to be approved by the Minister may be subject to conditional 
imports, as long as they comply with the conditions established in the respective legal 
instrument. " 
• According to Chapter V (Customs Warehouse), Article 197 (Concept):  
1. Customs warehousing procedure shall permit the storage of imported 
goods in a customs warehouse, irrespective of the quantity, country or 
place of origin and destination, with suspension of duties and other import 
charges or subject to commercial policy measures. " In such circumstances, 
Article 204 (Authorized Operations) provides: "2. Usual handlings [of such 
goods] must be detailed in a list to be approved by  the Minister, upon 
proposal by the Director General, and their realization must be authorized 
by the Director of Customs Control, who will determine the conditions under 
which they can be carried out.  
• Section V (Circulation of goods subject to Selective C onsumption Tax – ISC - and control 
of exit from port facilities), Article 226 (Documents accompanying goods subject to ISC): 
"1. The circulation of goods subject to ISC that are in suspension regime is made with a 
document of accompaniment whose model will  be approved by order of the Minister. " 
• Chapter IV (Guarantee for Customs Debt), Article 323 (Requirement of Guarantee):  
1. Always, when enforcing customs legislation, if the Customs require a 
guarantee to ensure payment of a customs debt, such guarantee s hall be 
provided by the debtor. 2. When the debtor is a service of Public 
Administration, the bank guarantee may be replaced by a commitment 
voucher of payment (CVP). 3. The list of Public Administration services 
authorized to use the commitment voucher of  payment shall be approved 
by the Minister.  
The Government of Timor -Leste remains committed to approve all required implementing 
regulations.  
A. IMPORT REGULATIONS  
- Characteristics of national tariff  
Question 19 
Paragraphs 120  – 123: i n accordance with the Customs Code of Timor -Leste, the Customs 
Tariff of Timor -Leste comprises the Nomenclature of Goods in accordance with the 
International Convention on the Harmonized Commodity Description and Coding System 
(HS), of the World Customs Or ganization. At present, Timor -Leste does not use customs 
classification for determining the applicable customs duty rate, as it applies a flat import 
duty rate of 2.5% that applies to all goods. The Memorandum states that Timor -Leste will 
phase -out the 2.5 % flat import duty rate and rely exclusively on an excise tax and value 
added tax which will apply equally to imports and domestic  production.  
 
We note  that Timor -Leste 's current 2.5% flat tariff rate on all imported goods will be 
phased out. Can Timor -Leste clarify whether it intends to apply tariffs to specific goods?  
 
Can the Government of Timor -Leste clarify what will be the rate of the VAT?  WT/ACC/TLS/ 4 
 
- 20 - 
 
  Answer : 
Discussions on the Fiscal Reform package are still ongoing since the legislative process was delayed. 
Phasing out the 2.5% flat import duty rate and rely exclusively on VAT and excise tax is just an 
option. So far, the 2.5% flat import duty rate has been a source of revenue for the State.  
At the moment, the Government of Timor -Leste reserves the right to (a) review the Harmonized 
System of Commodity Description and Coding to simulate tariffs for each coding line; (b) make an 
Offer on Goods; and (c) make an Offer on Services to the Working Party, in the context of the 
ongoing WTO accession process, whereby specific commitments will be sustained in the respective 
schedules.  
To that end, the Government has already requested WTO Technical Assistance, which will facilitate 
streamlining commitments with WTO standards and procedures. Timor -Leste would also welcome  
technical assistance from any WTO Member country.  
- Import licensing procedures  
Question 20 
In paragraph s 133 and 135 , the Government of Timor -Leste  mentions several government 
ministries that are responsible for import licensing and customs -related issues.  
Please provide the procedures for how Timor -Leste handles import and export -related 
emergencies (i.e. a denial of imported goods into the country ) along with the names and 
roles of the ministries involved in this process.   
Answer : 
In any situation of import and export -related issues, including emergencies, there are five Ministries 
with authority to deny imports of goods into the country, or export s, as follows, whose legal 
procedures are detailed in the Decree -Laws mentioned below, according to the structure established 
by Decree -Law No. 14/2018, of 17 August  2018, "Organic Law of the VIII Constitutional Government 
of Timor -Leste ": 
• Customs Authorit y operates under the Ministry of Finance (MF)  and is regulated by Decree -
Law No. 9/2017, of 29 March  2017, "Organic Law of the Customs Authority  (CA)", which 
determines, in its:  
Article 3 (Mission and Duties): "The CA has the general mission of exercising control over the  
entire national customs territory for tax, economic and social protection purposes, namely in 
the field of public safety, environment, culture and health, as well as administering tax 
collection and customs and other fees that a re legally committed. " 
To recall , the Customs Authority enforces the Customs Code, Decree -Law No. 14/2017, of 
5 April 2017, which "establishes the general rules and procedures for the import and export 
of goods pursuant to Article 3 (qq) of this Code, their movement and use in the customs 
territory, the control of passengers and the Customs' administrative and enforcement powers. " 
(Article  1.1). 
The Code is uniformly applicable to the entire customs territory of Timor -Leste , as well as, per 
Article 1.2 (b), to "trade between Timor -Leste and other countries, except as otherwise 
provided, in international agreements to which Timor -Leste is a contracting party. "  
Article 3 (qq) defines "Goods: includes means of transportation, animals, documents, currency, 
luggage, electricity, piped goods, and goods whose import or export is prohibited or 
conditioned by law. " 
Prohibitions or restrictions are "dictated by reasons of morality and public safety, protection 
of health and life of humans and animals, preservation o f plants and environment, protection 
of artistic, historical or archaeological heritage protection of industrial and commercial WT/ACC/TLS/ 4 
 
- 21 - 
 
  property " (namely , as per Articles 138.3 and 175.2 of the Customs Code ). Customs powers 
are detailed in Title III of the same De cree-Law. 
Quarantine and Sanitary Control Authority:  by force of Article 1 (Definitions) of Decree -
Law No. 21/2003, of 31 December  2003, on "Quarantine and Sanitary Control on Imported 
and Exported Goods ", the imports of plant and animal products are subject to the quarantine 
regulations under the Ministry of Agriculture and Fisheries  (MAF) . The above -mentioned article 
determines:  "w) 'Directorate of Quarantine Services ' means the service of the Ministry o f 
Agriculture, Forestry and Fisheries that deals 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. " 
The mentioned Government Department is now the Ministry of Agriculture and Fisheries. Per 
Article 8, emergency situations are dealt with as follows:  
1. Following a proposal made by this Service, the Minister may declare a 
given area of the country subject to sanitary control.  
2. Where there i s an outbreak of animal diseases or plant plagues, the 
Minister shall immediately take the necessary measures, including the 
resort to technical and scientific international and regional cooperation, in 
order to contain and fight the introduction, establis hment and propagation 
of such diseases, and shall also conduct an extensive dissemination 
campaign among the population with regard to the means to be used and 
the attitude the population should adopt in this effort and fight.  
Per its Article 14 (Import l icence): "The following items shall be subject to the previous import 
license to be issued by the Directorate of Quarantine Services: a) Live animals; b) Live plants; 
c) Animal or vegetal products as specified by law; d) Any other good, or merchandise, ani mal 
or vegetal organism as specified by law. " 
In addition to the Ministry of Finance (General Directorate of Customs) and the Ministry of 
Agriculture and Fisheries (Directorate of Quarantine Services), the following Ministries also 
have responsibility for import licensing and customs related issues, but their intervention only 
happens when goods are already in the country, i.e. after customs clearance (i.e. in stores, 
warehouses, etc.):  
• Pharmaceuticals:  Decree -Law No. 12/2004, of 26 May  2004, on "Pharmaceut ical Activities ", 
subjects import of pharmaceutical products to health regulations, under the authority of the 
Ministry of Health . This Decree -Law determines, in its:  
Article 3 (Licensing):  
1. Activities of import, storage, sales in bulk, sales in retail, and export of 
medicines for human use may only be exercised by entities duly registered 
in accordance with the applicable law for registration of businesses and duly 
licensed by the Regulating Commission of Pharmaceutical Activities 
pursuant to the  present statute, after consultation with the Board of 
Management pursuant to sub -paragraph (d), item 1, of Article 22 of the 
Organic Statute of the Minister of Health.  
• Food Industry and Marketing:  Imports of processed food products are subject to sanitary  
regulation, under the Ministry of Health and the Ministry of Commerce , according to Decree -
Law No. 28/2011, of 20 July  2011, on "Food Industry and Marketing Regulation ", whose 
Article  4 (Supervision) determines:  
The direction and supervision of the actio n to be developed for the 
implementation of this diploma shall be of the responsibility of the Food 
and Economic Inspection Department of the Ministry of Tourism, Trade and 
Industry, hereinafter referred to as MTTI, as the national authority 
responsible fo r the official control of hygiene of food, without prejudice to WT/ACC/TLS/ 4 
 
- 22 - 
 
  the specific powers of Health authorities.  
According to Decree -Law No. 14/2018, of 17 August  2018, "Organic Law of the VIII 
Constitutional Government of Timor -Leste ", MTTI is now the Ministry of Tourism, Commerce 
and Industry (MTCI).  
Furthermore, Decree -Law No. 26/2016, of 29 June  2016, established the  Authority for 
Inspection and Supervision of Economic, Sanitary and Food Activities  (AIFAESA)  with the 
mandate to ensure quality control activities of foodstuffs, conditions of transport, health  and 
places where they are produced and sold. As such, while the unit within the Ministry (MTCI) 
is charged with defining policies and procedures, AIFAESA is the enforcement agency.  
• Arms and Explosi ves: the manufacture, import, export, trade, transport and use of arms 
and explosives are subject to prior inspections which are carried out with support from the 
National Police of Timor -Leste (PNTL), according to Article 20 (c) of Decree -Law No. 9/2009, 
of 18 February  2009. PNTL operates under the Ministry of the Interior .  
Question 21 
In paragraph  134, the Government of Timor -Leste  states that it takes one to three weeks 
for many importing businesses to obtain a business authorization for low-risk activities 
established by standards adopted by the United Nations Statistic Division.  
Please state how long it takes most importing businesses to obtain authorization for 
medium -risk and high -risk activities and where more information about the authorization 
process can be found.  
Answer : 
More specifically, Decree -Law No . 34/2017, of 27 Sep tember  2017, on "Licensing of Economic 
Activities " determines the following reference timeframes in:  
Article 14: (Request):  
1. The request for authorization to exercise or conduct economic activity with medium 
and high -risk is always made to SERVE, which u nofficially sends it immediately to the 
government entity responsible for the sectorial licensing that takes place.  
2. After receiving the communication referred to in the previous number, the entity 
responsible for issuing the sectorial license informs S ERVE the date for sending the 
respective sectorial license.    
3. The authorization for the exercise of or conduct the economic activity with medium 
and high -risk level or category is issued by SERVE in 5 working days and after: a) The 
prior inspection pro vided for in the following article; b) The respective sectorial license 
has been issued by the competent entity and sent to SERVE, under the terms of the 
law. 
To register a company and apply for a registration certificate (CRC), tax identification number ( TIN) 
and business licen ce (AEA), the process is as follows:  
(a) Individual and Agency Entrepreneurs can apply for company registration at the One -Stop Shop 
(SERVE ). There is no cost for businesses or sole traders and companies ' registration. The following  
documents must be submitted: (1) Act of Association (AoA); (2) Shareholders ' IDs and, if married, 
proof of their marriage certificate and/or matrimonial property regime; (3) Shareholders ' taxpayer 
number (if any, otherwise it will be attributed by SERVE a t the time of registration); (4) Identification 
of the corporate bodies; (5) Letters of acceptance for each member of the corporate bodies; (6) 
Documents certifying that the company's capital has been deposited if it is mentioned in the AoA; 
(7) Map depict ing the location of registered offices; and (8) Certified copies of prior authorizations 
to conduct business, if applicable. At the end of the process, the registration documents can be 
collected at SERVE: registration certificate, which indicates the busi ness or sole trader 's and WT/ACC/TLS/ 4 
 
- 23 - 
 
  company's registration number, the tax identification number (TIN), the incorporation certificate and 
the business authorizations / licen ces.  
(b) For businesses considered to be medium or high -risk, additional applications for licen ces would 
apply, such as sectoral licensing (e.g. mining, infrastructures, aviation, tourism and recreational 
facilities, telecommunications, etc.), for being activities that require due diligence, environmental 
impact assessment, and  other concerns, to safeguard health and safety issues and the environment.  
The Government of Timor -Leste is working to update the legislation on Licensing of Economic 
Activities to simplify the licensing procedure, make it less burdensome and bureaucratic , channelling  
to a single agency, operating as a One -Stop-Shop (SERVE), to carry out all the necessary due 
diligence to set up a business and/or company in the country.  
- Customs valuation  
Question 22 
Paragraph 137  indicates that where the value of an imported good as indicated in the 
invoice is lower than the fair market value of the same good, customs authorities may 
calculate the fair market value of the transaction by referring to the value of simila r 
transactions among parties operating on a comm ercial basis (Article 97.1  of the Customs 
Code ).  
Please provide us with a copy of the Customs Code of Timor -Leste of 2017, including the 
legal provision cited  (Article 97.1 of the Customs Code)  and the Checklist on 
Implementation of the Customs Valuation Agreement .  
Answer : 
A copy of the Customs Code (Decree -Law No. 14/2017, of 5 April  2017) , has been submitted to the 
kind attention of the Working Party. For ea se of reference ", the requested provision is as follows:  
Article 97 (Transactional Value):  
1. The customs value of the goods is the transaction value, i.e. the price actually paid 
or payable for the goods when they are sold for export to the country of im portation, 
eventually after adjustment in accordance with the following article.  
2. Where the value of an imported good as indicated in the invoice is lower than the fair 
market value of the same good, customs authorities may calculate the fair market val ue 
of the transaction by referring to the value of similar transactions among parties 
operating on a commercial basis.  
3. For the purposes of determining the customs value of Goods imported into Timor -
Leste are included in the FOB value, freight, insuranc e and other expenses.  
Article 98 (Customs value of imported goods) provides that "the customs value of the imported 
goods is determined on the basis of the principles set out in Table 1 annexed to this Code. " The 
requested checklist is the Table 1 mentione d in Article 98 of the Customs Code.  
Question 23 
Paragraph 137  states that " the approach of the Customs Code is to use the transaction 
value wherever possible, while making allowance for situations in which the invoiced price 
appears to be inauthentic. Where the value of an imported good as indicated in the invoice 
is lower than the fair market value of the same good, customs authorities may calculate 
the fair market value of the transaction by referring to the value of similar transactions 
among parties operating on a commercial basis ." 
Would you please clarify the meaning of "the fair market value" and "the value of similar 
transactions among parties operating on a commercial basis"?  WT/ACC/TLS/ 4 
 
- 24 - 
 
   
With reference to the phase "for situations in which the invoiced price appears to be 
inauthentic" and the customs authorities may calculate the fair market value of the 
transaction by referring to the value of similar transactions among parties operating on a 
commercial basis. In such case, we would l ike to know this can be the cause to deny the 
transaction value method or not . 
Answer : 
In addition to the reply to Question 22 above, the Customs Code (Decree -Law No. 14/2017, of 
5 April 2017) , establishes Custom s Value as:  "the transaction value of the go ods, including costs, 
insurance and freight in accordance with the provisions of Article VII of the General Agreement on 
Tariffs and Trade (GATT), " (Article 3.ppp) " even though Timor -Leste is not yet a party to this 
Agreement. Articles 97 and 98 of the Cus toms Code provide more details to transactional value and 
customs value of imported goods.   
The procedures in support to the statement in paragraph 137 of the Memorandum  are detailed in 
Table I (Customs Value of Imported Goods) attached to the Customs Code . They address the use of 
the transaction value wherever possible, such as when the value of an imported good as indicated 
in the invoice is lower than the fair market value of the same good. They also include procedures for 
determining the fair market val ue. Please refer to Annex 1 of the Customs Code for more details on 
procedures.  
The value of similar transactions among parties operating on a commercial basis means the use of 
previous transaction value for similar imported goods as a basis for customs va luation. The Customs 
Authority can ask importers to show evidence and then apply the rules under the above -mentioned 
Table I, which are according to the World Customs Organization.  
The Government of Timor -Leste welcomes indications for improvement of the C ustoms Code, if found 
applicable to enhance full compliance with the WTO Customs Valuation Agreement.  
- Safeguard regime  
Question 24 
Paragraphs 150  – 152: we will ask the Government of Timor -Leste to commit not to 
impose any antidumping, countervailing, or safeguard measures, including the initiation 
of any investigations, until its authority (ties) and legislation are notified to the 
appropriate WTO committees.  
Answer : 
As stated in paragraphs 150 – 152 of the Memorandum , Timor -Leste does not have any anti -
dumping, countervailing or safeguard measures in place. Any policy decision for such actions would 
exist once the appropriate legislation is enacted, according to WTO Agreements.  
C. INTERNAL POLICIES AF FECTING FOREIGN TRAD E IN GOODS  
- Industrial policy, including subsidy policies  
Question 25 
Paragraph 161 states that "the Government of Timor -Leste aims to promote 
manufacturing as one of the five priority sectors of the economy. In the medium -term, 
manufacturing development will focus on the processing of agricultural products such  as 
coffee, candlenut and forestry products. The Government is also encouraging investment 
in food processing and beverage manufacturing. The Government of Timor -Leste is 
currently developing an Industrial Policy and action plan to promote manufacturing. T he 
Industrial Policy will not include any subsidy or tax incentives to promote manufacturing 
in particular sub -sectors."  WT/ACC/TLS/ 4 
 
- 25 - 
 
  How does the Government of Timor -Leste envisage developing  the processing of 
agricultural  products?  
How does the Government of Timor -Leste plan to encourage investment in food 
processing and beverage manufacturing?  
Answer : 
The main legal instrument to attract private investments in all sectors of the economy, including 
processing of agricultural products, food processing and beverage manufacturing is the Private 
Investment Law No. 15/2017, of 23 August  2017, which addresses Rights and Guarantees to 
Investors (Chapter III) as well as Special Benefits, in Chapter V (i.e. contracting foreign workers 
and employees, leasing property – up to 100 years, investing in rural areas and in special economic 
zones), and Fiscal Benefits, in  Chapter VI. The fiscal benefits provided by this law are open to 
investors in both agriculture and manufacturing (including food processing).  
Besides a set of special and fiscal benefits, the Government of Timor -Leste now has in place a one -
stop-shop for private investments, TradeInvest, the Investment and Export Promotion Public 
Agency, repositioned by way of Decree -Law No. 45/2015, of 30 December  2015. As an example , for 
beverage manufacturing, on 8 January 2015, Heineken Asia Pacific signed a Special In vestment 
Agreement with the Government of Timor -Leste, worth US D 40 million, that includes benefits and 
long-term leasing arrangements, opening the way for Heineken to build a beverage production plant 
that manufactures a range of soft drinks, beer, and mi neral water, with 200 direct jobs and 800 
indirect jobs. Notwithstanding, the country remains attractive to more investments in the beverage 
industry.  
Agriculture is a critical sector for Timor -Leste 's development. The country is endowed with great 
potent ials in this sector. An Industrial Policy, considered for approval by the Council of Ministers, will 
lay down the measures appropriate to develop the industrial capacity of the country, including 
processing of agricultural products. A draft of the Industri al Policy will be shared with the Working 
Party as soon as it is finalized.  
- Technical barriers to trade, standards and certification s 
Question 26 
Paragraph  162 states that Timor -Leste does not have technical regulations, standards, or 
conformity assessment procedures in place, but is "interested in developing and 
approving such standards to ensure conformity with WTO and ASEAN agreement on TBT. "  
Can you share wi th us your plans for the development of the necessary legislation and 
regulations to comply with the TBT Agreement?  
Answer : 
The Government of Timor -Leste is in the process of building its legal and institutional framework, 
which will include appropriate le gislation, technical regulations, standards and conformity 
assessment procedures. The Government expects this framework to be in conformity with the TBT 
Agreement. For instance, a National Quality Control Institute (IQTL) has been formally created by 
Decre e-Law No. 10/2018, of 9 April  2018, and is in the process of implementation.  
IQTL's mandate is:  
Article 3 (Mission and Duties):  
1. IQTL  is the national regulatory entity for Qualification, Standardization and Metrology 
and its mission is to implement and manage the national quality system and other 
regulatory qualification systems that are conferred on it by law, to promote and 
coordinate activities that aim to contribute to demonstrate the credibility of the action 
of economic agents, as well as to develop actions necessary for their function as a WT/ACC/TLS/ 4 
 
- 26 - 
 
  national metrology laboratory.  
In the development of these plans, the Government will rely on  technical assistance, namely from 
United Nations Industrial Development Organization (UNIDO) and can also welcome WTO assistance 
as appropriate.  
To recall , Section 53 (Consumer Rights) of the Constitution provides:  
1. Consumers have the right to goods an d services of good quality, to truthful 
information and protection of their health, safety and economic interests, and to 
reparation for damages. " In addition, Section 61 (Environment) provides: "1. Everyone 
has the right to a humane, healthy, and ecologic ally balanced environment and the duty 
to protect it and improve it for the benefit of future generations.  
- Sanitary and phyto sanitary measures   
Question 27 
In paragraph 163 , are there any channels/online channels to allow access to the updated  
draft Action Plan  for the implementation of the SPS Agreement  to interested persons?  
Answer : 
The requested draft Action Plan is not yet available, since it will result from the revis ion of  Decree -
Law No. 21/2003, of 31 December 2003, on "Quarantine and Sanitary Control on Imported and 
Exported Goods " which  is under preparation , with technical assistance from the International Finance 
Corporation (IFC) of the World Bank.  
A rough draft  of the work done so far, but not yet discussed at the Council of Ministers, is being 
made available to the Working Party. A major change could be the split of the legal text into two 
Decree -Laws:  
a. Animal Health and Quarantine, to establish an animal health and we lfare framework; to 
prevent the introduction and spread of animal diseases in Timor -Leste; to control the 
spread and eradication of animal diseases; to control the movement of animals, animal 
products and animal -related items into, out of and within Timor -Leste; to facilitate trade; 
to enable animal welfare; to protect veterinary public health; to regulate veterinary 
products; and to create a system for animal identification; and  
b. Plant Health and Quarantine, to establish a phytosanitary framework in Timor -Leste to 
prevent the introduction and to control the spread of plant pests, to protect plant 
resources, and to facilitate trade in plants and plant products.  
The Government of Timor -Leste welcomes comments and suggestions for improvements of both 
texts, in the context of the WTO accession process. Afterwards, the respective Action Plans will be 
considered for approval by the Government.  
Furthermore, to recall that besides WTO compliance, the Government of Timor -Leste is willing to 
align in -country technical  regulations, standards and conformity assessment procedures with 
International Standards, as expressed in the  Decree -Law No. 21/2003, Article 6 (International 
Standards): "In the implementation of its sanitary policy, the Ministry shall govern itself by 
international and regional standards, directives and recommendations. " 
Question 28 
In paragraph 171, the Government of Timor -Leste  states that each import requires an 
import risk analysis to assess the risk posed by the import.   
Please provide information on how the risk analysis requirement can be met.  WT/ACC/TLS/ 4 
 
- 27 - 
 
  Answer : 
As the Working Party is aware, quarantine and sanitary requirements are in place to protect the 
country and the population from several risks. For example, Decree -Law No.  21/2003, of 
31 December  2003, on "Quarantine and Sanitary Control on Imported and Exported Goods " provides 
for import sanitary requirements in Chapter III and requires, in:  
Article 13 (General Regime for Imports):  
1. No person shall be allowed to import any animal, animal product, plant, vegetal 
products, organisms, seeds, genetically modified organisms or seeds, microorganisms, 
soil, animal ration, machines and used vehicles and any other good or merchandise 
except  where the terms and conditions provided for by law have been observed.  
2. Without prejudice to other conditions and requirements provided for by law, the 
import conditions and requirements may specify the origin of the animal or plant or 
products derived thereof, organisms or any good or merchandise, as well as inspections, 
treatments, points of entry and exit, proofs, analyses and tests, or isolation in the 
country of export in a quarantine facility.  
3. In conformity with the law and directives and taking into account the risks posed by 
the introduction of diseases, plagues and other exotic organisms, the import license 
shall contain the import conditions specific to the case and the international standards 
and recommendations.  
To meet the risk analysis requirement imposed by the Law, an import licen ce is required, per:  
Article 14: "The following items shall be subject to the previous import license to be issued by the 
Directorate of Quarantine Services: (a) Live animals; (b) Live plants; (c) Animal or vegetal products 
as specified by law; (d) Any other good, or merchandise, a nimal or vegetal organism as specified by 
law."  
The Decree -Law further details procedures to have an ex-ante licence for the import of animals, 
plants and any product and establishes the basis for decision, by requiring, in its:  
Article 16:  
Where an impor t license is to be granted, the decision falling onto the respective request 
must assess the probability risk for the introduction, establishment and propagation of 
diseases or plagues, as well as the risk that such introduction, establishment or 
propagati on may result in damages caused to persons, animals, plants, environment 
and economic activities and it must be governed by the necessity to reduce such risk to 
a level that is low and acceptable.  
Additional applicable provisions are further determined in the above -mentioned Decree -Law, namely 
in its Article 22 (Restrictions) and Article 28 (Import Ban).  
The Government of Timor -Leste is aware that quarantine and sanitary requirements is an area of 
expertise that requires duly-trained capacity to be in plac e in order to meet the risk analysis 
requirement and fully enforce the Law. The Government believes that the WTO accession process 
will also result in an enhanced capacity in Timor -Leste to handle quarantine and sanitary related 
issues.  
Question 29 
In paragraph 173, the Government of Timor -Leste  states that Decree -Law No. 21/2003 
prescribes further rules for applications for particular imports.   
Please provide a copy of Decree Law No. 21/2003.  WT/ACC/TLS/ 4 
 
- 28 - 
 
  Answer : 
A copy of Decree -Law No.  21/20 03, of 31  December  2003, on "Quarantine and Sanitary Control on 
Imported and Exported Goods " has been submitted to the kind attention of the Working Party, as 
well as a copy of Government Decree No. 1/2006, of 20 September  2006, on "General Quarantine 
Regulations. " 
Question 30 
Paragraph  173: please explain the weight requirement, the justification for this 
requirement, and what specific requirements and conditions must be met by fresh meat 
that exceeds the weight requirement.  
Answer : 
Decree -Law No. 21/2003, of 31 December  2003, on "Quarantine and Sanitary Control on Imported 
and Exported Goods " includes requirements for the import of Live Animals and Animal Products 
(Section II), including provisions for Animal Products for Human Consumption (in Sub -Section II).  
The same Decree -Law establishes provisions for weight requirement as follow:  
Article 36 (Import of fresh meat):  
1. The import of fresh meat may take place without restrictions so long as it is packed 
in hermetically s ealed packages or containers, weighs less than 5% of its meat weight 
and does require refrigeration in order to maintain quality or so long as it is canned 
meat and does not require refrigeration. 2. Shipments of fresh meat that do not meet 
the requirement s established in paragraph 1 above may only be imported once the 
conditions and requirements provided for by law have been met.  
Meanwhile, since the whole quarantine and sanitary control framework is being revised, as already 
mentioned in replies to Questi on 26 (TBT) and particularly  Question  27 (Quarantine and Sanitary 
Control), the Government of Timor -Leste is willing to revisit the whole framework, in light of the SPS 
Agreement.  
Question 31 
Paragraph  174: please provide information on current service fees.  
Answer : 
The statement made in paragraph 174 is that the Ministry of Agriculture and Fisheries and the 
Ministry of Finance may issue a joint ministerial statute on fees.  
Decree -Law No. 21/2003, of 31 December  2003, on "Quarantine and Sanitary Control on Imported 
and Exported Goods"  determines, in Chapter VI (Fees, Costs):  
Article 66 (Fees):  
1. The granting of import licenses, the issuance of phyto - or zoo -sanitary certificates, 
the carrying out of inspections, treatments, proofs, analyses and tests, and the 
mainten ance of items in quarantine facilities as well as the rendering of any other 
services in the commercial or private import of animals, plants, or of any other item 
subject to inspection, veterinary and phytosanitary control and quarantine, shall call for 
the payment of a service fee, the amount of which shall be defined in a joint ministerial 
statute by the Minister of Agriculture, Forestry and Fisheries and the Minister of Planning 
and Finance. 2. The release of ships and aircraft from quarantine shall call  for the 
payment of a fee the amount of which shall be determined in a joint ministerial statute 
by the Minister of Agriculture, Forestry and Fisheries, the Minister of Transports, 
Communications and Public Works, and the Minister of Planning and Finance.  WT/ACC/TLS/ 4 
 
- 29 - 
 
  Even though the authority is granted to define service fees, to date no action has been taken to that 
end. Besides, since the whole quarantine and sanitary control framework is under review, the 
Government of Timor -Leste is revisiting the issue of service fees and costs in the context of such 
review. Meanwhile, the Customs Code  (Decree -Law No. 14/2017, of 5 April  2017) , already 
establishes some fees.  
Question 32 
In paragraph  175, the Government  of Timor -Leste  states that Decree -Law No. 1/200 6 
establishes rules and procedures to implement Decree -Law No.  21/2003.   
Please provide a copy of Decree Law No. 1/2006.  
Answer : 
As mentioned in the reply to Question 29, a copy of the Government Decree No. 1/2006, of 
20 September  2006, on "General Quarantine Regulations"  has been submitted to the kind attention 
of the Working Party.  
In paragraph 175 of the Memorandum , this legal text refers to a "Decree -Law", while it is, in fact, a 
"Government Decree ." Per its:  
Article 2 (Objective):  
The objective of these present General Regulations is to establish procedures, practical 
rules and general requirements necessary to implement the rules of Decree Law 
No. 21/2003, of 31 December, on the sanitary control of the import and expor t, as well 
as the movement within the national territory, of any item subject to quarantine, so as 
to avoid the introduction or spread of pests and diseases in the national territory or 
their introduction and spread in other countries coming from the natio nal territory or 
even their introduction into a district of the Country, originating from another sanitary 
district.  
- Trade -related environmental policies  
Question 33 
Paragrap h 179:  please provide more information on the domestic rules and regulations or 
requirements of Timor -Leste for the import and export of plants under CITES convention.  
Answer : 
Government Decree No. 1/2006, of 20 September  2006, on "General Quarantine Regulations " 
provides  the regulatory implementation framework for Decree -Law No. 21/2003, of 
31 December  2003, on "Quarantine and Sanitary Control on Imported and Exported Goods",  in: 
 
Article 73 (Prohibitions):  
1. The Directorate of Quarantine Services must not auth orize the import of any item 
proceeding or originating from a Country of areas undergoing an occurrence of pests or 
diseases subject to quarantine, or which are listed in CITES – Convention on 
International Trade in Endangered Species (of wild fauna & flor a). 2. Without obstructing 
the disposition of the previous number, the import of an item carrying pests or diseases 
destined for scientific research in a governmental laboratory may however be allowed, 
if all the necessary measures for its sanitary safety have been taken.  WT/ACC/TLS/ 4 
 
- 30 - 
 
  - Government procurement  
Question 34 
In paragraph 183 , the Memorandum  states that "Government procurement is governed 
by the Timor -Leste Public Procurement Framework, approved by Decree -Law No.  10/2005  
of 21 November  2005 , as amende d by Decree -Law No. 24/2008  of 23 July  2008 , Decree -
Law No. 1/2010  of 18 February  2010  and by  Decree -Law No. 15/2011 of 30  March 2011 ." 
 
Does the Government of Timor -Leste have any plans to review its  current procurement 
policy and  procedures?  
 
If yes, would the Government of Timor -Leste align them to those of the WTO  Agreement 
on Government Procurement ? 
Answer : 
By authority of Government Resolution No. 39/2017, of 27 July 2017 , i.e. after submission of the 
Memorandum  to the WTO Secretariat, the Government of Timor -Leste approved a  "document that 
summarizes the main po licy lines for the revision of the legal regime of public procurement, public 
contracts and the respective regime of infractions. " The Government set up an inter -ministerial 
Technical Working Group, provided clear guidance and a timetable (initially about three months) for 
the way forward, including the holding of several rounds of authorized public hearings with relevant 
stakeholders. The immediate result is the enactment of Decree -Law No. 30/2019, of 
10 December  2019. 
In a nutshell, Timor -Leste Public Pro curement Framework, approved by Decree -Law No. 10/2005, 
of 21 November  2005, was amended by Decree -Law No. 24/2008, of 23 July  2008, Decree -
Law No. 1/2010, of 18 February  2010, Decree -Law No. 15/2011, of 30 March  2011, Decree -
Law No. 38/2011, of 17 August  2011, and Decree -Law No. 30/2019, of 10 December  2019.  
Timor -Leste as a least-developed country  (LDC)  remains committed to an alignment and compliance 
with the WTO rules, commensurate to Timor -Leste 's development needs, according to Article V of 
the WTO Agreement on Government Procurement and aiming a modern Public Procurement 
Framework.   
Question 35 
Paragraph 184 : Please describe the procedure used for procurements above the 
USD 100,000 threshold but below the international open ten der thresholds. Are such 
procurements reserved for local companies?  
Answer : 
The Government of Timor -Leste has been enforcing Public Procurement Framework contained in 
Decree -Law No. 10/2005, of 21 November  2005, more recently amended by Decree -Law 
No. 30/2019, of 10 December  2019. The US D 100,000 threshold  was introduced by Decree -Law 
No. 24/2008, of 23  July 2008, which determines:  
Article 37 (Public Tender) determines:  
Within the terms and conditions of the present diploma, procurement procedures may 
include the following types: a) Public tender, required for procedures equal or o ver 
US$100,000 (one hundred thousand American dollars), where any interested party may 
submit a bid, provided it complies with the requirements set in the tender documents; 
b) Tender limited by pre -qualification, admitting only tenders by the parties selec ted in 
the pre -qualification procedure; c) Restricted tender, where only the parties invited may 
submit bids; d) Negotiation or proposals in two stages; e) By estimate request; f) By 
direct adjustment; g) By simplified procedure.  
Therefore, public tenders are mandatory in procurements equal or over US D 100,000 and not WT/ACC/TLS/ 4 
 
- 31 - 
 
  reserved for local companies. Whenever purchasing goods and services and executing public works, 
all public institutions are obliged to follow principles such as public interest, competition, equal 
treatment, legality, transparency, and impartiality, which are set by Decree -Law No. 10/2005, of 
21 November  2005. Any interested party may submit a bid, provided it complies with the 
requirements set in the tender documents. Legal provisions on proc urement may be revisited and 
eventually clarified or superseded in the context of the ongoing work towards an updated Public 
Procurement Framework of Timor -Leste, as mentioned in the reply to Question 34 above.   
Question 36 
Paragraph 184 : does Timor -Leste collect or make available data on the number and value 
of tenders above the USD 100,000 threshold or other thresholds provided for in this 
paragraph?  
Answer : 
The Government of Timor -Leste kindly invites the Working Party to consult, namely, the 
eProcurement Portal at : https://www.mof.gov.tl/government -procurement/eprocurement -
portal/?lang=en  whereby data and any other relevant informati on on Timor -Leste Public 
Procurement are made available.  
The same portal is also used by the Government to announce tenders and all requests for quotes 
for public goods, services and works, to ensure transparency in government procurement. Public 
access to  tenders allows all citizens and vendors to download tenders, providing equal opportunity. 
Tender search can be done by : (a) Tender category (Computing, Construction, etc.); (b) Tender 
type (RFP, RFQ, etc.); (c) Region (Districts); (d) Tender status (Available, Awarded, Cancelled, etc.); 
(e) Tender ID; and ( f) Institution buyer type (Ministry).  
In addition to the above -mentioned website, since 2015, the Public Procurement Commission (CNA, 
in Portuguese) also has a procurement portal (www.cna.gov.tl ) which presents information on 
current tenders and intent to award, whereby it announces i nvitation for bids, the winning bidder 
and the results of the evaluations undertaken. This website also keeps records of past public tenders.  
Question 37 
In paragraph 185 , the Memorandum states that "i n terms of restrictions to the above -
mentioned general rules, the law determines that a National Open Tender Procedure shall 
compulsorily be adopted in the event the procurement concerns goods, works or services 
of an amount up to US$100,000. In this type of procedure, the participation of bidd ers is 
limited to Timor -Leste individuals and/or companies set up in Timor -Leste whose share 
capital is majority held by Timor -Leste citizens (at least 51%) or in which the said Timor -
Leste individuals and/or companies may be regarded as preferential bidde rs. In addition, 
by Decree -Law No. 2/2010, of 18 February 2010, the Government approved a special 
procurement procedure for the award of Public Works in an amount of up to US$250,000, 
in which only local companies based in the municipality may apply. " 
Can the Government of Timor -Leste confirm that foreign -based bidders are treated on a 
fair and equal basis with domestic bidders in bidding processes above US D 100,000?  
Answer : 
As stated in paragraph  183 of the Memorandum : "Government procurement is governed by the 
Timor -Leste Public Procurement Framework, approved by Decree -Law No. 10/2005, of 21 November 
as amended by Decree Law No.  24/2008, of 23 July, Decree -Law No. 1/2010, of 18 February, by 
Decree Law No. 15/2011, of 30 March. " 
The Government Procurement Framework was more recently amended by Decree -Law No. 30/2019, 
of 10 December  2019.  
All amendments so far have made changes to some articles, but the main public procurement legal WT/ACC/TLS/ 4 
 
- 32 - 
 
  text is still Decree -Law No. 10/2005, of 21 November  2005, which determines in:  
Section II (Principles), Article 4 (Legal and Equality Principles):  
1. In designing and executing the procurement procedures, the Public Service observes 
the rules typified in the present decree, admitting only the exceptions foreseen in the  
law. 2. The access and participation conditions are equal to all interested parties and 
those criteria shall be well expressed in all procedures for procurement processes, any 
discrimination of the bidders being prohibited. 3. In each procedure shall be g uaranteed 
the consultation of the biggest possible number of interested parties and, always, the 
minimum number required by the law.  
Based on the above -mentioned legal statutes, the Government of Timor -Leste confirms that 
"foreign -based bidders are treated  on a fair and equal basis with domestic bidders in bidding 
processes above US$100,000. " In other words, there is no requirement for Timorese ownership of 
companies in the procurement of goods and services above US D 100,000.  
Concerning procurement of public works in municipalities up to US D 250,000, as determined by 
Decree -Law No. 2/2010, of 18 February 2010 , there is no preferential treatment to Timorese 
nationals, since both nationals and foreigners need to apply according to the same procedures 
established in the above -mentioned Decree -Law.  
In addition, as stated in paragraph  186 of the Memorandum,  Decree -Law No. 11/2005, of 
21 November  2005, consolidates an effective system on matter of procurement and public contracts, 
based on the principles of legality and transparency, under legal norms capable of promoting the 
participants ' discipline.  
Article 1 (Objectives) states: "The objective of the current law is to define the conducts that 
constitute infractions under the Legal Regime of P rocurement and Public Contracts, and to establish 
applicable proceedings and the means of impugnation. " 
Question 38 
In paragraph 186 , the Memorandum states that " the adoption of a direct award procedure 
that is not duly grounded and justifi ed according to the law may be viewed as an 
administrative offence, pursuant to Article 3 of Decree -Law No. 11/2005, of 
21 November  2005, which sets forth the Legal Framework on Administrative Offences to 
the Public Procurement Legal Framework, and states that any action or omission which is 
contrary to the rules established in the Timor -Leste Public Procurement Framework, in 
the special legal regimes covering that matter, and in the Legal Regime of Public Contracts 
and in their additional standards, shall constitute an administrative offence. […] Another 
situation that is regarded as a limitation to the general principle of open and transparent 
competition results from the existence of an internal instruction from the Cabinet of the 
Prime -Minister (Circular  Note No. 003/GPM/III/2009), where it is stated that the 
Government should preferentially purchase Mitsubishi or Toyota vehicles, except when 
there is a specific reason that justifies the purchase of state vehicles of other brands. The 
logic of this transi tory measure was the availability of spare -parts and maintenance 
services."   
What are the requirements and limitations surrounding the use of direct award procedure 
for foreign -based bidders?  
 
Are there available guidelines or criteria to help provide foreign -based bidders with advice 
on the use of direct award proced ure? If yes, where can one find  them?  
Beside state vehicles, are there other specific goods/services/sectors for which the 
Government is expected to buy specific brands?  
Answer : 
Decree -Law No. 10/2005, of 21 November  2005, provides, in Article 44 (Procurement by Direct WT/ACC/TLS/ 4 
 
- 33 - 
 
  Award) , that : "1. The procurement procedure by Direct Award is an exceptional procedure, by which 
the Public Service can award to one or to determined suppliers to meet specific procurement needs 
and pre -existence of special circumstances in the terms determined in Articles 92 to 94. " 
As such, Articles 92 to 94 of the above -mentioned Decree -Law provide the requirements and 
limitations surrounding the use of direct aw ard procedure for all bidders, as follows:  
• Article 92 (Process for Procurement by Direct Appointment):  
1. The Public Service may choose direct award, in the following cases: (a) 
whenever there is a single goods supplier, work or services to be delivered, 
without another alternative or reasonable substitute; (b) when there is a 
supplier that has specific rights in relation to goods, construction work or 
services (and) no alternative or reasonable substitute exists; (c) when the 
contract has, as object, an e xpert regime, investigation, experimentation, 
study or development, or the acquisition, or restoration of historical art 
works, and it is not possible to tender, because the supplier is the only one 
capable and immediately available to achieve the objectiv e; (d) when 
accordingly, to another contract initially signed by a determined supplier, 
the adjudicatory responsible for the project design requires the purchase 
of vital items from a specific supplier as a condition of execution guarantee 
or of quality in  the contract; (e) in the cases of emergency purchases; (f) 
in the cases of the supply of additional parts or parts substitution of a bidder 
whose offer has already been accepted in other contract signed; 2. For all 
operations, as well as circumstances tha t justify the use of this procedure, 
the correspondence shall be documented, in the terms established in the 
present decree and complementary rules.  
• Article 93 (Limitations in the use of Direct Award Procedure):  
1. In the procedure by direct award, the Pub lic Service contacts directly 
with the future contract awardee in order to arrange a contract with 
him/her, based on special reasons. 2. This procedure cannot be used in the 
cases foreseen the paragraph c) of no. 1 in the last article, when the same 
contra ct includes the production of goods in quantities that establish its 
business viability or the cost recovery with research and development; 
3. In the case of paragraph d) of no. 1 in the last article, a new contract 
shall be made by direct award procedure within the authorized limits in the 
Article 9 of the present Decree -Law, when concurrently there are at least 
one of the following circumstances: a) by reasons for the standardization 
of goods, construction work or services; b) the need for compatibility w ith 
goods, construction work and technical services already received.  
• Article 94 (Direct Award for Emergency Purchases):  
1. The Public Service can use the procedure for emergency purchases, 
when: a) there is an urgent need, unforeseen and not caused by the  
procurement beneficiary in relation to construction works, goods or 
services, not being practical to initiate tender procedures or any other 
procurement methods; b) In the case of official declaration of catastrophe 
or emergency situation, which imposes t he need to do construction work, 
supply goods or deliver services to avoid the loss of lives, loss of 
Government properties or other demands that require an urgent action in 
the public interest. 2. In this case, the Public Service can contract by direct 
award only the goods, construction work or services strictly necessary to 
remedy the emergency and provide an answer to the immediate shortages.  
Those are the applicable legal provisions and guidelines/criteria foreign -based bidders can refer with 
respect to direct award procedure.  
In other words, where there is no specific legal regime in place for the procurement in the WT/ACC/TLS/ 4 
 
- 34 - 
 
  above -mentioned areas, the State follows the general principles of the Government Procurement 
Framework.   
With respect to the Pri me-Minister 's Circular Note No. 003/GPM/III/2009, which was enforced under 
particular circumstances, this internal instruction is no longer in force. The Government reiterates 
its commitment to review the whole public procurement framework in the context o f the WTO 
accession process, should it be deemed necessary.  
V. TRADE -RELATED INTELL ECTUAL PROPERTY REGI ME 
1. GENERAL  
Question 39 
In paragraphs 195 – 197, the Memorandum  explains  that there is no effective intellectual 
property legislation in Timor -Leste.  
We would like to know the current status (such as drafting, under public comment, diet 
deliberation or other status) of, and the schedule for, the legislation  of (i) registration 
procedure of patents, ind ustrial design and trademark, (ii ) protection of copyright and 
related rights, (iii ) protection of new varieties of plant, ( iv) prevention of unfair 
competitions, and (v) protection of undisclosed in formation including trade secret.  
Answer : 
The Government of Timor -Leste is pleased to inform the Working Party that Timor -Leste acceded to 
the World Intellectual Property Organization (WIPO) on 12 September 2017, following the deposit 
with the Director Gen eral of WIPO, at Geneva, of the Instrument of Accession to the Convention 
Establishing the World Intellectual Property Organization (WIPO), signed at Stockholm on 
14 July 1967, and amended on  28 September  1979. Resolution No. 16/2017, of 25 July 2017, of t he 
National Parliament of Timor -Leste ratifies the Convention.  
The accession to WIPO opens avenues of institutional collaboration and partnership that will help 
Timor -Leste achieve compliance with the substantive obligations of the WIPO Convention and the 
international treaties and conventions on Intellectual Property, such as the Paris Convention for the 
Protection of Industrial Property (Paris Convention) and the Berne Convention for the Protection of 
Literary and Artistic Works (Berne Convention).  
In add ition, following the above -mentioned accession, the Government of Timor -Leste and WIPO will 
sign a Memorandum of Understanding (MOU), aware of the importance of having a well -functioning 
and balanced intellectual property (IP) regime in order to promote in novation and creativity, which 
are the main drivers of economic development of knowledge -based economies. The MOU allows 
Timor -Leste to have access to specialized technical assistance in order to appropriately integrate IP 
related issues into the national development framework and cater for the interface of broad national 
IP policies and strategies with relevant national policy issues.  
Under the MOU, WIPO proposes to provide technical assistance to Timor -Leste in the following 
phases: (a) Conducting the fi rst assessment mission; (b) Establishment of a Project Team (starting 
with the designation of an IP Focal Point in Timor -Leste to help build a National IP Office); (c) 
Undertaking document research; (d) Data and information gathering; (e) Holding of nation al 
consultation meetings; (f) Strategy development; (g) Strategy validation; and (h) Implementation 
of the adopted strategy.  
Consequently, the Government of Timor -Leste looks forward to the effective signing and 
implementation of the MOU with WIPO and will work towards the implementation of the international 
conventions and treaties to be ratified, as well as the implementation strategy to be adopted.  
On another note, the Government of Timor -Leste further informs the Working Party of the following 
IP-related Constitutional Statutes:  
a. Section 165 (Previous Law): "Laws and regulations in force in Timor -Leste  shall continue WT/ACC/TLS/ 4 
 
- 35 - 
 
  to be applicable to all matters except to the extent that they are inconsistent with the 
Constitution or the principles contained therein. " 
Pursuant to that provision, Intellectual Property Legislation prior to the independence of Timor -Leste 
is still formally in force. Meanwhile, enforcement has been limited. In addition:  
b. Section 60 (Intellectual Property ): "The State shall guarantee and protect the creation, 
production and commercialization of literary, scientific and artistic work, includ ing the legal 
protection of copyrights. " 
Based on that constitutional statute, the Civil Code  (Law No. 10/2011, of 14 September 2011 ) 
provides, in its:  
Article 1223 (Intellectual Property): "1. Copyright and industrial property are subject to special 
legislation. 2. However, the provisions of this Code shall apply in a subsidiary manner to copyright 
and to industrial property where they are consistent with the nature of those rights and do not 
conflict with the special scheme established for th em."  
However, Intellectual Property issues in Timor -Leste are yet to be developed with special legislation, 
and the way forward has already been identified, as mentioned above.  
Moreover, Section 60 of the Constitution, on Intellectual Property, constitute s the legislator 's 
obligation to produce specific legal instruments to protect this right. The national penal sanctioning 
system includes, in general, not only the application of the main penalties (imprisonment and / or 
fine) but also other legal conseque nces such as the seizure and loss of objects and instruments of 
crime, as well as the dispossession of any advantages of crime ( Articles 102 and 103) as is also 
presupposed in Section 5 of Part III of the TRIPS  Agreement . 
In addition, as an umbrella reply to IP-related issues, the Government suggests the Working Party 
to also refer to Decree -Law No. 23/2009, of 5 August  2009, on "Regime for Administrative Offenses 
Against the Economy and Food Security ", which establishes, in its:  
Article 21 (Fraud on Goods) : 
Anyone who imports or sells, as a wholesaler or retailer, with the intention of deceiving 
consumers in commercial relations, is punished with a fine of US $3,000.00 to 
US $20,000.00 dollars for goods and merchandise:  
a) Counterfeit, forged or depreciated , making them appear authentic, unaltered or 
intact; or  
b) Of a different nature or of a lower quality and quantity than those which they claim 
to possess or appear.  
Public authorities determine a counterfeit, forged or depreciated product by way of an adm inistrative 
offence procedure namely based on the above -mentioned legal provisions, particularly Article 38.1. 
of Decree -Law No. 23/2009. The appeal can be submitted to the court system.  
As an LDC, Timor -Leste expects to be granted an adequate period to adopt TRIPS -inherent 
obligations in the national system. Since IP -related issues are knowledge intensive and specialized 
in nature, they require the country to have the appropriate institutions and human capital in place, 
which takes time.  
The above statements describe the current status of IP -related issues in Timor -Leste. The 
Government of Timor -Leste kindly requests the Working Party to take the above statements into 
account in all replies to  Questions 40 – 64. 
Question 40 
Paragraphs 196 – 202: what is the timeframe for adopting comprehensive IP laws, 
including but not limited to a TRIPS/Berne compliant copyright law?  WT/ACC/TLS/ 4 
 
- 36 - 
 
  Answer : 
The Government of Timor -Leste expects the required timeframe to result from the thorough national 
assessment of IP -related issues, to be carried out with specialized technical assistance particularly 
from WIPO, soon after the signing of the MOU, leading to a National IP Strategy and inherent Actio n 
Plans. To that end, the required resources will be mobilized and made available to establish a 
National IP Office and Technical Team to take up the work. " 
 
- Responsible agencies for policy formulation and implementation  
Question 41 
Paragraph 201  states that "Timor -Leste does not have an IP office for administration and 
management of IP related legislation. "  
To that end, where are patents/registrations issued?  
Answer : 
After restoration of independence in 2002, there has so far been no IP -related institution or legal 
framework in place in Timor -Leste. As such, as mentioned in response to Question 39, IP -related 
issues (standards, enforcement and dispute settlement mechanisms) will now be addressed with 
technical assistance particularly from WIPO.  
As a rather temporary mechanism (see paragraph 215 of the Memorandum ), companies have been 
running advertisements in local ne wspapers (commonly called "Cautionary Notices") , as a common 
practice to publicize the fact that a given IPR is exclusively owned by a certain company and that its 
unlawful use is forbidden. For the time being, it remains the only procedure that interested  parties 
can adopt to overcome the absence of specific IPR statutes, registration and protection in Timor -
Leste. The Government of Timor -Leste expects to overcome this situation very soon, with technical 
assistance namely from WIPO.  
Question 42 
Paragraph 201 : what is the timeframe for setting up an IP office?  
Answer : 
As mentioned in response to Question 40 above, the required timeframe for setting  up the IP office 
will result from the thorough national assessment of IP -related issues, to be  carried out soon after 
the signing of an MOU with WIPO, and with specialized technical assistance, leading to a National IP 
Strategy and inherent Action Plan.  
 
The Government of Timor -Leste has a strong commitment to build the appropriate institutions to 
ensure compliance with all aspects of the TRIPS Agreement at the earliest timeframe deemed 
possible by the assessment to be conducted.  
 
- Membership of international intellectual property conventions and of regional or 
bilateral agreements  
Question 43 
Paragraph 202 : what is the timeframe for joining the Berne Convention?  
Answer : 
By way of accession to WIPO, ef fective as of 12th September 2017, the Government of Timor -Leste 
will sign and ratify all conventions and treaties deemed necessary under a modern IP regime, as 
well as the ones required in the context of accession to WTO, including the Berne Convention fo r the 
Protection of Literary and Artistic Works (Berne Convention).  WT/ACC/TLS/ 4 
 
- 37 - 
 
  Once again, the timeframe for joining such conventions and treaties will result from the national 
assessment of IP related issues in Timor -Leste.  
Question 44 
Paragraph 202 : does the Government of  Timor -Leste have any intention of joining other 
international copyright treaties, such as the WIPO Internet Treaties?  
Answer : 
As mentioned in reply to Question 43 above, the Government of Timor -Leste will be party to th e 
conventions deemed necessary in the context of accession to the WTO and as a result of accession 
to the WIPO.  
Question 45 
In paragraph 202, the Memorandum  explains that Timor -Leste is not a party to the 
principal treaties in the field of intellectual property.  
We would like to know (i) the current status of domestic law reforms necessary to join 
such treaties, (ii) treaties which you are planning to join, and (iii) the target schedule of 
joining such treaties respectively.  
Answer : 
The Government of Timor -Leste kindly invites the Working Party to refer to the above replies to 
Question 43 and 44 and reiterates the strong commitment to join the conventions and treaties 
deemed necessary in the context of accession to the WTO. As already men tioned, the timeframe for 
joining such conventions will result from the national assessment and implementation strategy of 
IP-related issues in Timor -Leste.  
 
- Application of national and most -favoured -nation treatment to foreign nationals  
Question 46 
Paragraph 203 : is the Investment Law codified? Does this include IP rights, stemming 
from Cautionary Notices (see paragraph 215)?  
Answer : 
"Cautionary Notices " are not regulated in any Timorese Law, nor is the jurisprudence of the Timorese 
Courts known in the matter. However, local practice in Timor -Leste has been a means of protection 
for intellectual property rights that is being respected b y economic agents.  
Timor -Leste 's new Private Investment Law No. 15/2017, of 23 August  2017, is not a Private 
Investment Code. However, this law is the main legal diploma regarding the investment sector in 
the country. The Law provides, under:  
Chapter III ( Investors ' Rights and Guarantees), Article 19 (Intellectual Property): "All investors have 
the right to the protection of industrial secrets, copyright, industrial property rights, trademarks, or 
any other intellectual property rights that are recognized b y law. "  
It is a general law with a provision applicable to foreign investors ' intellectual property rights but 
refers the respective regime to specific legislation. Specialized IP legislation will further regulate 
standards, enforcement and dispute settle ment mechanisms inherent to such investors ' right and 
guarantee.  
Not being a Code, the Private Investment Law has several provisions that refer to specific applicable 
legislation. Besides the Civil Code (Law No. 10/2011, of 14 September  2011), the followi ng Table WT/ACC/TLS/ 4 
 
- 38 - 
 
  summarizes some references of/to other complementary legislation contained in the Private 
Investment Law No. 15/2017, of 23 August  2017: 
No. Articles Related to 
Private Investment  Source  
1. Article 2  Investments: Section 140 of the Constitution  
2. Article 9.1  Private Initiative: Section 138 of the Constitution  
3. Article 9.2  Natural Resources: Section 139 of the Constitution  
4. Article 10.2  Right to Private Property: Section 54.2 of the Constitution; Law No. 13/2017, 
of 5 June 2017,  on "Land and Property " 
5. Article 12  Access to Courts: Section 26 of the Constitution  
6. Article 14.2  Law No. 13/2017, of 5 May  2017, on "Land and Property " ("Special Regime 
for the Definition of Ownership of Real Estate ") 
7. Article 15  Article 54.3, Constitution; Law No. 8/2017,  of 26 April 2017, on  
"Expropriation by Public Utility " 
8. Article 16  Import Export: Decree -Law No. 21/2003, of 31 December  2003, on 
"Quarantine and Sanitary Control on Imported and Exported Goods  "; 
Decree -Law No. 1/2006, of 20 September  2006, on "General Quarantine 
Regulations "; Decree -Law No.  24/2011, of 31 May  2011, on  "Licensing of 
Commercial Activities " 
9. Article 17  Access to Credit: Law No. 10/2011, of 14 September  2011, "Civil Code "; 
Decree -Law No. 23/2017, of 12 July  2017, on "Credit Guarantee Scheme for 
Small and Medium -Sized  Enterprises " 
10. Article 18  Decree -Law No. 17/2015, of 24 June  2015, on "National System of Payment " 
and Law No. 17/2011, of 28 December 2011, on "Prevention and Combating 
Money Laundering and the Financing of Terrorism ," as amended by Law 
No. 5/2013, of 14 August 2013  
11. Article 22.1  Law No. 11/2017, of 24 May  2017, on "Migration and Asylum " 
12. Article 25.3  Decree -Law No. 19/2004, of 17 December  2004, on "Legal Regime of Real 
Estate " (Official Allocation and Lease)  
13. Article 30.2  Decree -Law No. 14/2017, of 5 April  2017, "Customs Code " 
14. Article 37  Section 26 of the Constitution; Decree -Law No. 32/2008, of 27 August  2008, 
on "Administrative Procedures "; Decree -Law No. 1/2006, of 
21 February  2006, " Code of Civil Procedure " 
15. Article 39  Article 22 and 25 of the Private Investment Law  
16. Article 42  Decree -Law No. 45/2015, of 30 December  2015, "Creates Timor -Leste 
Investment and Export Promotion Agency, I.P ." (TradeInvest Timor -Leste, 
Public Institute)  
So far, as already mentioned, Cautionary Notices in local newspapers have been a practice accepted 
as a mechanism to enforce ownership of a given IPR. However, the Government of Timor -Leste 
expects to overcome this situation with technical assistance namely from WIPO.  
2.  SUBSTANTIVE STANDARD S OF PROTECTION  
- Copyright and related rights  
Question 47 
Paragraph 205 states that "There are presently no laws and related substantive measures 
to ensure protection of copy rights and related rights. "  
Does the Government of Timor -Leste intend to establish protections for copyrights and 
related rights consistent with Part II, Section 1 of the TRIPS  Agreement  and Art icles 1 - 
21 of the Berne Con vention?  If so, when?  If not, why?   
Answer : 
The answer is yes , the Government of Timor -Leste intends to comply with all provisions of the TRIPS 
Agreement applicable to LDCs, and its inherent standards, enforcement and dispute mechanisms.  
As mentioned above, particularly in replies to Questions No. 39, 44 and 45, the Government of 
Timor -Leste will consider joining and enforcing the provisions of the conventions and treaties in the 
context of the accession process to the WTO.  WT/ACC/TLS/ 4 
 
- 39 - 
 
  Question 48 
Paragraph 205 : regarding Copyright, we understand that, currently, there are no 
copyright laws.  But we also have heard that there have been plans, reported within the 
last few years, to present a draft Copyright Law to the Secretariat of State for Art and 
Culture.   
What is the status of this draft?  If this info rmation is erroneous, what are the plans for 
drafting laws to protect copyrighted works?  What is the proposed timeline?  At this time, 
is there any protection in place for copyrighted works, other than the possible use of the 
informal Cautionary Notice?  
Answer: 
As already mentioned, Timor -Leste has just acceded to the WIPO (effective as of 
12 September  2017) and intends to soon sign an MOU to open the way for specialized technical 
assistance to be made available, to help develop the appropriate IP regime.  
The Government of Timor -Leste understands that IP issues ought to be addressed as a whole 
package, thus avoiding dealing with partial and isolated components, like the eventual draft law to 
protect copyright works. Any existing work already done will be ide ntified in the course of the planned 
assessment and integrated into a National IP Strategy and inherent Action Plans.  
Again, as already mentioned, currently there is no system in place to protect copyright works other 
than the use of informal Cautionary Notices. This is, however, a temporary situation that the 
Government of Timor -Leste is willing to overcome very soon.  
- Trademarks, including service marks  
Question 49 
Paragraph 206 : does the Government of Timor -Leste intend to establish trademark laws 
consistent with  the TRIPS  Agreement  Part II, Section 2;  Paris Convention Art icles 6 - 10? 
If so, when?  If not, why?  
Answer : 
In view of the statement made in paragraph 206 of the Memorandum , the Government of Timor -
Leste intends to establish trademark laws consistent with the provisions of the TRIPS Agreement 
applicable to LDC s. The timeframe will result from the assessment to be soon conducted with 
technical assistance namely from WIPO. The  National IP Strategy will lead to Action Plans for 
immediate action by the Government of Timor -Leste.  
 
- Industrial designs  
Question 50 
Paragraph 208 : does the Government of  Timor -Leste intend to establish Industrial design 
laws consistent with the TRIPS  Agreement  Part II, Section 4? If so, when?  If not, why?  
Answer : 
The answer is yes. The Government of Timor -Leste intends to establish industrial design laws 
consistent with t he provisions of the TRIPS Agreement applicable to LDC s. The timeframe will result 
from the assessment to be soon conducted with technical assistance namely from WIPO.  
 WT/ACC/TLS/ 4 
 
- 40 - 
 
  - Patents  
Question 51 
Paragraph 209 : does the Government of Timor -Leste intend to establish patent laws 
consistent with the TRIPS  Agreement  Part II, Section 5? If so, when?  If not, why?  
Answer : 
The answer is yes. The Government of Timor -Leste intends to establish patent laws consistent with 
the pr ovisions of TRIPS Agreement applicable to LDC s. The timeframe will result from the 
assessment to be soon conducted with technical assistance namely from WIPO.  
- Plant variety protection  
Question 52 
Paragraph 210 : does the Government of Timor -Leste intend to establish Plant variety 
protection laws consistent with the TRIPS  Agreement  Part II, Section 5, Art icle 27(3)(b)? 
If so, when?  If not, why?  
Answer : 
The answer is yes. The Govern ment of Timor -Leste intends to establish plant variety protection laws 
consistent with the provisions of TRIPS Agreement applicable to LDC s. The timeframe will result 
from the assessment to be soon conducted with technical assistance namely from WIPO.  
- Layout designs of integrated circuits  
Question 53 
Paragraph 211 : does the Government of Timor -Leste intend to establish layout designs of 
integrated circuit laws consistent with the TRIPS  Agreement  Part II, Section 6; Treaty on 
IP in Respect of Integrated Circuits (IPIC)?  If so, when?  If not, why?  
Answer : 
Layout designs of integrated circuit laws consistent with the provisions of TRIPS Agreement 
applicable to LDC s will be established in Timor -Leste very soon, after the assessment to be conducted 
with technical assistance namely from WIPO.  
- Requirements on undisclosed information, including trade secrets and test data  
Question 54 
Paragraph 212 : does the Government of Timor -Leste intend to establish laws on trade 
secrets and test data consistent with the TRIPS  Agreement  Part II, Section 7; Paris 
Convention Article  10bis? If so, when?  If not, why?  
Answer : 
Timor -Leste does not yet have any legal regime on unfair competition, business secrets or other 
mechanisms to protect competition 's loyalty. However, the Government will address this issue in the 
context of the development of an appropriate legal protection of trade secrets, namely under 
technical assistance from WIPO. Besides, Timor -Leste 's competition law, yet to be designed, would 
also address the issue of protection against unfair competition in respect of tr ade secrets.  WT/ACC/TLS/ 4 
 
- 41 - 
 
  3. MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROP ERTY RIGHTS  
Question 55 
Paragraph 215 : do Cautionary Notices confer IPRs? Are they self -declared, enforc eable 
rights? Do they give a cause of action against infringement either?  
Answer : 
So far, Cautionary Notices, with all their inherent inefficiencies and weaknesses, are the only 
common practice to self -declare a given IPR. They grant cause for action against infringement. 
Meanwhile, the Government of Timor -Leste suggests to the Working Party to consider the situation 
as being transitory.  
Notwithstanding the replies to Questions 40, 46 and 56, the parties concerned may always use the 
general civil procedure to safeguard their rights, including by means of "unspecified precautionary 
measures " to prevent infringement of intellectual property rights.  
The legal assurance granted by Timor -Leste 's new Private Investment Law No. 15/2017, of 
23 August  2017, namely in Chapter III (Investors ' Rights and Guarantees), Article 19 (Intellectual 
Property) as quoted in response to Question 46 above, and wit h technical assistance namely from 
WIPO, the Government of Timor -Leste expects to overcome the situation and soon have a modern 
IP framework law, regulations and enforcement institutions in place for the benefit of the economy.  
Question 56 
According to paragraph 218  of the Memorandum, the Government of Timor -Leste is 
committed to seizing and destroying the counterfeit goods, when they are reported.  
Please explain (i) how the Government determines the valid right -holder of intellectual 
prope rty, in spite of no registration of intellectual properties, and (ii) how the Government 
determines the good in question is counterfeit goods.  
Answer : 
The Government of Timor -Leste refers the Working Party to the provision of the Code of Civil 
Procedure  (Decree -Law No. 1/2006 of 21 February 2006) , as follows:  
Article 305 (Scope of unspecified precautionary measures): "1. Whenever a person shows sustained  
concern that somebody else is causing serious injury of difficult repair to his right, he may request 
specifically adequate conservatory or preventive measure to ensure the effectiveness of the right 
being threatened. "  
In addition, as already mentioned, Decree -Law No. 23/2009, of 5 August  2009, establishes 
provisions on the Regime for Administrative Offenses Against the Economy and Food Security , such 
as: 
Article 21 (Fraud on Goods):  
Anyone who imports or sells, as a wholesaler or retailer, with the inten tion of deceiving 
consumers in commercial relations, is punished with a fine of US  $3,000.00 to 
US $20,000.00 dollars for goods and merchandise:  
a) Counterfeit, forged or depreciated, making them appear authentic, unaltered or 
intact; or  
b) Of a different nature or of a lower quality and quantity than those which they claim 
to possess or appear.  
Public authorities determine a counterfeit, forged or depreciated product by way of an administrative WT/ACC/TLS/ 4 
 
- 42 - 
 
  offence procedure namely based on the above -mentioned legal pr ovisions, particularly Article 38.1. 
of Decree -Law No. 23/2009. The appeal can be submitted to the court system.  
Article 38.1. of this legal text allows public authorities to determine a counterfeit, forged or 
depreciated product by way of an administrativ e offence procedure. The appeal can be submitted to 
the court system. Such provision allows the reporting of counterfeited goods to law enforcement 
institutions (e.g. National Police of Timor -Leste, Customs Police), whereby informal Cautionary 
Notices can be used to sustain complaints and legal causes against occurrences of IPR infringements.  
The Government of Timor -Leste is aware  that the system is weak and carries inefficiencies and is 
committed to setting up a modern IP legal framework, as well as capable human capital and 
enforcement institutions.  
Question 57 
Paragraph 219 : we not e that Customs Code Article  59 states  that industrial and 
commercial property may be prohibited or restricted.  
Do rights holders in Timor -Leste have the ability to lodge an application for the suspension 
of goods suspected of being counterfeit or pirated?  If not, does the Government of Timor -
Leste intend to establish such procedures?  
Answer : 
The answer is yes. The Government of Timor -Leste intends to establish a modern and comprehensive 
IP legal regime, supported by capable human capital and enforcement institutions that will certainly 
grant rights holders in Timor -Leste the ability to lodge applications for the suspension of goods 
suspected of being counterfeit or pirated. This will also be an outcome of the upcoming technical 
assistance namely from WIPO.  
4. ENFORCEMENT  
Question 58 
We note that p aragraph s 221  – 225 are a duplication of p aragraphs 215  – 219.  
 
Please provide more information on enforcement.  
Answer : 
Repetition of paragraphs 215  – 219 in paragraphs was unintentional. In addition to information 
already made available in replies to IP -related questions in this document, the Working Party should 
consider the following:  
It may be said that publication of Cautionary Notices has been an effective and efficient  way of 
preventing trademark, patent, and design infringements to date. Companies indicate that, in the 
event of IPR infringement, sending a "cease and desist letter " along with a copy of a local newspaper 
containing the Cautionary Notice advertisement may  contribute to limiting counterfeited goods from 
entering or circulating in Timor -Leste, despite the non -existence of an IP law. Though counterfeiting 
occurs, the Government is committed to seizing and destroying counterfeited goods when they are 
reported.  
There are already several examples of domestic statutes and multilateral treaties, to which Timor -
Leste is a party, which address IP infringement. Article 175 (Allocation of a customs -approved 
treatment) of the Customs Code  (Decree -Law No. 14/2017, of 5 A pril 2017) , sets forth the 
application of prohibitions or restrictions justified on grounds of public morality, order and public 
safety, protection of health and life of humans, animals or plant protection, protection of the national 
heritage of artistic, historical or archaeological value or protection of industrial and commercial 
property. The Customs Code also contains statutes for import, storage and circulation of products 
subject to selective excise tax, under which companies shall issue a supporting document for every 
good cleared from a Customs Bonded Warehouse (Loading Receipt) that shall, among other WT/ACC/TLS/ 4 
 
- 43 - 
 
  information, include information on the trade name of the product.  
UNTAET Executive Order No. 2002/12, on the trade of goods bearing the national sym bols of Timor -
Leste, also includes provisions on enforcement. Pursuant to Article 3.1:  "Failure to fully and 
immediately comply with this Order shall constitute an offense and shall result in its prompt 
enforcement by all lawful means available to the Timo r-Leste Public Administration, including its law 
enforcement and border services ." 
Under Article 3.4 of this statute, these provisions shall be in addition to, and shall in no way limit, 
substitute, or intervene with prosecuting any criminal proceeding or the imposition of any criminal 
sanctions pertaining to the unauthorized use of trademarks, trade names, and similar items of 
intellectual and industrial property rights with respect to the national symbols.  
In addition, as already mentioned under reply to Question 39, Decree -Law No. 23/2009, of 
5 August  2009, on the Regime for Administrative Offenses Against the Economy and Food Security, 
also provides law enforcement authorities with legal provisions to take action against anyone who 
imports or sells goods  and merchandise, as a wholesaler or retailer, with the intention of deceiving 
consumers in commercial relations, whenever such goods and merchandise are counterfeit, forged 
or depreciated, making them appear authentic, unaltered or intact; or of a differe nt nature or of a 
lower quality and quantity than those which they claim to possess or appear. Public authorities 
determine a counterfeit, forged or depreciated product by way of an administrative offence 
procedure. The appeal can be submitted to the court  system.  
Furthermore, Article 27 of the Convention on International Civil Aviation provides for exemption 
from seizure on patent claims. Under this Article:  
While engaged in international air navigation, any authorized entry of aircraft of a 
contracting St ate into the territory of another contracting State or authorized transit 
across the territory of such State with or without landings shall not entail any seizure 
or detention of the aircraft or any claim against the owner or operator thereof or any 
other interference therewith by or on behalf of such State or any person therein, on the 
ground that the construction, mechanism, parts, accessories or operation of the aircraft 
is an infringement of any patent, design, or model duly granted or registered in the  
State whose territory is entered by the aircraft, it being agreed that no deposit of 
security in connection with the foregoing exemption from seizure or detention of the 
aircraft shall in any case be required in the State entered by such aircraft.  
Pursuan t to Article 15 of the World Health Organization (WHO) Framework Convention on Tobacco, 
addressing illicit trade in tobacco products, the Parties recognize that the elimination of all forms of 
illicit trade in tobacco products, including smuggling, illicit  manufacturing and counterfeiting, and 
the development and implementation of related national law, in addition to sub -regional, regional 
and global agreements, are essential components of tobacco control.  
- Civil judicial procedures and remedies  
Question 59 
Paragraph 226 : we note that Article  19 of the Private Investment Law states that 
investors are entitled to protection of their IP, according to the applicable legislation of 
Timor -Leste. There is currently no IP legislation in Timor -Leste. Individuals or companies 
who publish Cautionary Notices are able to bring a lawsuit against alleged infringers, but 
it is unclear what procedures are used, and if the remedies comply with TRIPS Pa rt III, 
Section 2, Art icles 44 - 46.  
Please clarify.  
Answer : 
In addition to replies already provided on IP -related questions, particularly to Questions 39, 40, 46 
and 55, the Government is aware of the need to establish a modern IP regime in the country. 
Procedures concerning enforcement of IP regime will be modernized according to the conventions WT/ACC/TLS/ 4 
 
- 44 - 
 
  and treaties deemed necessary as a result of the specialized technical assistance namely from the 
WIPO. As such, the Working Party is kindly urged to consider th e strong commitment to put in place 
a modern IP regime in the country that will overcome existing shortfalls and upgrade Timor -Leste in 
this particular area.  
Question 60 
Paragraph 226:  please elaborate on how exactly an IP right holder could seek civil 
remedies against any infringer under the Private Investment Law. In particular, please 
answer to the following questions:  
 
How IP owner could prove its IP right before the court (without  registration number etc.)?  
 
What is the scope of intellectual property to be covered by civil procedures based on 
Private Investment Law?  
 
What are causes of action (expropriation, discriminatory treatment etc.) IP right holder 
can rely on asserting IP infringement under the Private Investment Law in civil 
procedures?  
 
Is permanent injunction available as a civil remedy?  
 
How damage of IP right holder would be calculated in the civil procedures?  
Answer : 
The Government of Timor -Leste suggests  to the Working Party to kindly refer to the replies provided 
to Questions 39, 40, 46, 55 and 59 above. In addition, the provision of the Code of Civil Procedure, 
Article 305 (Scope of unspecified precautionary measures) already quoted (in response to 
Question 56) also allows legal actions based on the existing legal remedies.  
Question 61 
Paragraph 227 : does the Government of Timor -Leste intend to establish civil judic ial 
procedures consistent with the TRIPS  Agreement  Part III, Section 2?  If so, when?  If not, 
why?  
Answer : 
Yes. The Government of Timor -Leste intends to develop and ensure the enforcement of the 
provisions of the TRIPS Agreement applicable to LDCs, in the relevant civil judicial procedures, with 
the expect ed technical assistance namely from WIPO.  
- Provisional measures  
Question 62 
Paragraph 228 : does the Government of Timor -Leste intend to establish provisional 
measures consistent with the TRIPS Agreement Part III, Section 3?  If so, when?  If not, 
why?  
Answer : 
Yes, the Government intends to make sure all provisions of  the TRIPS Agreement applicable to LDC s, 
including the  establishment and enforcement of provisional measures, are adopted by the relevant 
authority, where appropriate. The Government kindly suggests the Working Party to refer to replies 
to Questions 39, 40, 46 and 55 above.  WT/ACC/TLS/ 4 
 
- 45 - 
 
  - Any administrative procedures and  remedies  
Question 63 
Paragraph 229 : does the Government of Timor -Leste intend to establish administrative 
procedures consistent with the TRIPS  Agreement  Part III, Section 2? If so, when?  If not, 
why?  
Answer : 
Yes. In line with all replies on IP related issues in this document, the Government of Timor -Leste 
intends to develop, establish and enforce all provisions of the TRIPS Agreement applicable to LDC s, 
including the establishment of appropriate administrative procedures.  
- Criminal procedures  
Question 64 
Paragraph 232 : does the Government of Timor -Leste intend to establish criminal 
procedures consistent with the TRIPS Agreement Part III, Section 5?  If so, when?  If not, 
why?  
Answer : 
Yes. The Government of Timor -Leste intends to develop, a dopt and enforce all provisions of TRIPS 
Agreement applicable to LDC s, including the establishment of appropriate criminal procedures in the 
relevant legislation.  
VI. TRADE -RELATED SERVIC ES REGIME  
3. MARKET ACCESS AND NA TIONAL TREATMENT  
- Limitations on the participation of foreign capital  
Question 65 
Paragraph 263 : we recommend that this section inc lude the new Private Investment  Law.  
Answer : 
The Government takes note of this recommendation from the Working Party and kindly states that 
the new Private Investment Law No.  15 /2017, of 23 August 2017, does not establish a ny other 
restrictions on the participation of foreign capital besides those already determined in the legal 
framework.  
- Measures providing for less than the treatment accorded to national services or 
service suppliers  
Question 66 
Paragraph 264 , we recommend that this section include the Land Law.  
Answer : 
The Government takes note of this recommendation from the Working Party and recalls that Law 
No. 13/2017, of 5 June  2017, on "Special Regime for Determination of Ownership of Immovable 
Property, " determines:  
Article 7.1 : "Foreign natural or legal persons are not entitled to the ownership of the property right 
over immovable pr operty. " This statute derives from the Constitution, Section 54 (Right to private WT/ACC/TLS/ 4 
 
- 46 - 
 
  property): "4. Only national citizens have the right to ownership of land. " 
However, the new Private Investment Law No. 15/2017, of 23 August  2017, determines:  
Article 25 .1: "the State may enter into a contract with any holder of declaration of benefits or special 
investment agreement, to lease state property for implementation of investment project for a 
maximum period of 50 years, renewable for periods from 25 years to a  total of 100 years. " 
VIII.  TRADE AGREEMENTS  
- Bilateral or plurilateral agreements relating to foreign trade in goods and trade  
in services  
Question 67 
In paragraph 272, does the Government of Timor -Leste ha ve any intention to initiate trade 
negotiation s to establish any trade agreement in the future?  
Answer : 
The Government of Timor -Leste is willing to consider entering into negotiations with other countries 
and eventually sign trade agreements, to safeguard mutual interests and enhance mutual benefits, 
while honoring commitments inherent to WTO accession. For example, Timor -Leste aspires to ASEAN 
accession, which would entail accession to ASEAN Free Trade Agreements, such as ASEAN Trade in 
Goods Agreement (ATIGA), ASEAN Trade in Services Agreement (ATISA), ASEAN Comprehensive 
Investment Agreement (ACIA) and to ASEAN +1 Free Trad e Agreements with its ASEAN Dialog 
partners.  
- Economic integration, customs union and free -trade area agreements  
Question 68 
Paragraph 273 states that the Go vernment of Timor -Leste is currently implementing the 
reform to comply with the ASEAN trade in goods and trade in services agreements to 
become an ASEAN member state, the AEC blueprint has already addressed the need to 
comply with three main trade agreemen ts on goods, services and investment.  
To this extent, we would like to seek clarification why Timor -Leste is preparing for ASEAN 
accession only in the area of trade in goods and trade in services.  
Answer : 
Timor -Leste is ready to join ASEAN whenever the As sociation is ready to welcome Timor -Leste. Until 
then, the Government of Timor -Leste continues to prepare the country to be better positioned for 
full ASEAN accession, and towards full compliance with the ASEAN Economic Community Blueprint, 
namely in the a rea of trade in goods, trade in services and investments. This is the understanding 
of paragraph 273. Furthermore, Timor -Leste is intensifying its efforts towards compliance of all 
ASEAN pillars or requirements.  
ANNEX 3 : INVESTOR ACTIV ITY REGULATION UNDER  THE PRIVATE INVESTM ENT LAW  
Question 69 
Please explain what is meant by "note that to date the Private Investment regime has 
been optional, i.e. the applicability of the rules is not mandatory. " Is this still the case 
under the Private Investment Law passed in 2015?  
Answer : 
Under the general terms of the Constitution and the Timorese Civil Law, Private Investors are free WT/ACC/TLS/ 4 
 
- 47 - 
 
  to invest and carry on economic activities in Timor -Leste, except the activities required by la w to be 
reserved to the State or to Nationals. As such, until now, Private Investors do not necessarily need 
to implement their investments in the context of the Private Investment Law, unless they want to 
benefit from the incentives provided by this law. However, the general guarantees provided by the 
new Private Investment Law No. 15/2017, of 23 August  2017, are applicable to all Private Investors 
(nationals or foreigners). If they wish to receive special benefits, such as those relating to work 
visas, ac cess to state owned land and/or tax benefits, they must observe the procedures provided 
in the new Law. 
Question 70 
Please explain the purpose of the Investor Certificate.  
Answer : 
The Government of Timor -Leste informs the Working Party that  the need for the "Investor 
Certificate " has been superseded by the new Private Investment Law No. 15/2017, of 
23 August  2017. 
The issuance of the Investor Certificate was provided for in Article 28 of the Private Investment Law 
No. 14/2011, of 28 September  2011, as a procedure to verify if the investor fulfilled the requirements 
for obtaining special benefits.  
However, the new Private Investment Law No. 15/2017, of 23 August  2017, eliminates the "Investor 
Certificate " and introduces a simple "Declaration of Benefits " in its Article 36. This statement is to 
be issued by TradeInvest, by way of a simplified process. It is intended only for the investor to prove 
before public authorities that they qualify for the benefits provided in the Private Invest ment Law.  
The Declaration of Benefits is a document signed by a representative member of the Government 
that produces only a "declarative effect " in the legal system. This way, the Declaration of Benefits 
cannot provide to the investor more rights/benefits /incentives than the Law permits. The Declaration 
of Benefits only declares which are and in what amount the rights/benefits/incentives attributed to 
the private sector.  
Question 71 
Please explain the rational for the different fees charged  for the Investor Certificate to 
investors depending on whether they are national (US D 500) or foreign (US D 2,000).  
Answer : 
As mentioned in the above replies, particularly to Questions 5 and 6, the new Private Investment 
Law No. 15/2017, of 23 August  2017, determines:  
Article 44 (Exemption of Fees): "no fee is charged for the services of promotion and facilitation of 
the investment rendered, as well as for processing the application for granting declaration of benefits 
and negotiation of special investment agreement. "  
This new provision was adopted to better comply with the principles of equal treatment and non -
discrimination.  
Those administrative fees were introduced by the Private Investment Law No. 14/2011, of 
28 September  2011, with a view to  positively discriminate national investors. However, as 
mentioned above, the new Law eliminates all processing fees in its Article 44. Therefore, this kind 
of positive discrimination no longer exists for national investors.  
Question 72 
In the sub -section on the obligations owed to investors, w hat are "certain favoured  
foreign investors "? WT/ACC/TLS/ 4 
 
- 48 - 
 
  Answer : 
The expression "certain favored foreign investors " is not a discriminatory statement, but rather 
applies to any investor whose investment requires a Special Investment Agreement with the 
Government of Timor -Leste, whereby additional benefits may be granted, as determined by the new 
Private Investment Law No. 15/2017, of 23 August  2017:  
Article 38 (Special Investment Agreement):  
1. The State may exceptionally enter into an investment agreement with an investor by 
defining special conditions for investment projects which, by their size or nature, or 
their e conomic, social and environmental impact or technological development, may be 
of great national interest within the framework of the Strategic Development Plan, which 
justifies the adoption of the special benefits provided for in Articles 24 and 25 and oth er 
specific non -fiscal benefits to be negotiated with the investor. 2. The special investment 
agreement is authorized by resolution of the Government, with explicit indication of the 
reasons justifying the agreement and the special regime governing it.  
This positive and justified measure is recognized by the Law and does not arise from any 
circumstantial decision from the Government. The legislator understood that considering the 
investment needs and conditions of Timor -Leste, it was necessary to create a s pecial regime inside 
the Private Investment Law  to protect these special and rare situations when a special investment 
agreement is deemed necessary.  
ANNEX 4 : MEASURES AFFECTING FOREIGN INVESTMENT  
Question 73 
If the Pri vate Investment Law " abolishes the need for investments to be pre -authorized 
by the Government, " what is the role of the Investor Certificate?  
Answer : 
As mentioned above (reply to Question 70), the need for the Investor Certificate has been eliminated 
by the new Private Investment Law No. 15/2017, of 23 August  2017, along with the entire procedure 
for obtaining it, which is replaced by a simple "Declaration of Benefits " to be issued by Trade Invest, 
for the investor to prove the benefits he/s he enjoys. The procedures of obtaining Declaration of 
Benefits were regulated under the Government Decree No. 2/2018 of the 21 February  2018, from 
February 2018 until March 2019 . The Government has altered such regulation and adopted a new 
Government Decre e No. 04/2019, of 29 May  2019. 
Question 74 
If the Negative Investment List is "informational, " is the legal basis for the restrictions 
contained in other laws?  If that is the case, will the Negative Investment List be updated 
each time there is a change to an ex isting law regarding investment  restrictions?  
Answer : 
Yes. The Government of Timor -Leste suggests the Working Party to kindly refer to the replies related 
to the Negative List, namely as provided in the reply to Question 7. Consi dering that restrictions on 
access to certain economic activities by private investors (national and/or foreign) result either from 
the Constitution or from various pieces of legislation, TradeInvest is under a legal obligation to keep 
the "Negative Invest ment List" updated, under the terms of Article 9.3 of the new Private Investment 
Law No. 15/2017, of 23 August  2017. As such, whenever there is a change to the laws with an 
impact on the informational Negative List, this list will necessarily be updated an d made available to 
investors in general.  WT/ACC/TLS/ 4 
 
- 49 - 
 
  ANNEX 27 (F): ENVIRONMENTAL SERVIC ES 
Question 75 
Please provide more information on the regulatory environmental services relating to 
wastewater treatment, disposal and sanitation, and what are the principles of 
these  regulations?  
Answer : 
The Government of Timor -Leste informs the Working Party that the Water and Sanitation Sector in 
the country is still undergoing reforms and development of a modern and special applicable  legal 
framework.  
Concerning wastewater, Decree -Law No. 26/2012, of 4 July  2012, "Basic Law of the Environment " 
determines:  
Article 41 (Wastewater):  
1. The State shall establish the mechanisms and means necessary to ensure the 
appropriate treatment of dom estic, commercial and industrial wastewater and sewage 
effluents for the purpose of preserving the quality of fresh, surface, and underground 
water, and sea water. 2. Any establishment or plant which evacuates wastewater shall 
ensure that it is cleaned in accordance with the environmental standards set for that 
purpose.  
Article 42 (Hazardous Waste): "1. The import of hazardous waste is prohibited. 2. The identification, 
control, production, transportation, storage, export and use of hazardous waste is subject to special 
legislation. " 
Furthermore, considering the environmental impact of urban solid waste on fresh water, the 
Government of Timor -Leste finds it appropriate to also refer to the following solid waste management 
principles, as established by Decree -Law No. 2/2017, of 22 March  2017, which approves the "Urban 
Solid Waste Management System ", whose Article 10 (Management Principles), determines that the 
provision of the urban waste management service obeys the principles of public health and the 
environment; promotion of universality and equal access; quality and continuity of service and 
protection of users' interests; economic and financial sustainability of services; user -payer principle; 
responsibility of the citizen, adopting preventive behavio rs in the matter of waste production, as well 
as practices that facilitate their reuse, recycling or other forms of valorization; transparency in the 
provision of services; ensuring efficiency and continuous improvement in the use of the associated 
resourc es, responding to the evolution of the technical requirements and the best environmental 
techniques available; and  promoting economic and social solidarity, correct territorial planning and 
regional development.  
The above -mentioned principles will also be considered when developing special legislation 
applicable to Wastewater Management.  
 
__________