RESTRICTED  
  
WT/ACC/SPEC/TLS/3  
 
1 June 2021  
(21-4552) Page: 1/10 
Working Party on the Accession of Timor -Leste  Original: English  
 
 
ACCESSION OF TIMOR -LESTE  
OFFER ON SPECIFIC COMMITMENTS IN SERVICES  
The following submission, dated 21 May 2021, is being circulated at the request of the 
Delegation of the Democratic Republic of Timor -Leste.  
 
_______________  
  
  WT/ACC/SPEC/TLS/3  
 
- 2 - Modes of supply: (1) Cross -border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or sub -sector  Limitations on Market Access  Limitations on National Treatment  Additional 
commitments  
I. HORIZONTAL COMMITMENTS  
All sectors included in the schedule  
Land ownership   3)  Land ownership is limited to the citizens of Timor -
Leste as established under the Constitution.  
Foreigners have the right to lease state or private 
land between 5 and 50 years and renewable up to 
maximum 150 years.   
Commercial presence   3)  Foreign commercial companies incorporated in 
Timor -Leste shall appoint a legal representative 
with permanent residence in Timor -Leste.   
Movement of natural persons  4) Unbound , except as indicated below 
concerning measures for the temporary 
entry and stay of natural persons:  
 
(i) Business visitors:  
 
– Persons engaged in establishment :  
 
representatives of a foreign -based 
service supplier seeking entry and 
temporary stay for the purpose of 
setting up a commercial presence.  
 
The period of s tay is limited to a 
maximum of 6 months with a 
possibility of extension to up to 2 
years.  
 
– Services salespersons:   
 
    Representatives of a foreign -
based service supplier seeking 
entry and temporary stay for the 
purpose of negotiating the sale of 
a service or attending business 
meetings.  
 
    Such representatives shall not 
be engaged in direct  sales to the 
public or in supplying services 
themselves and shall not receive 
remuneration from a source 4)  Unbound , except for the measures affecting the 
entry and temporary stay of natural persons 
referred to in the market access column.    
  WT/ACC/SPEC/TLS/3  
 
- 3 - Modes of supply: (1) Cross -border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or sub -sector  Limitations on Market Access  Limitations on National Treatment  Additional 
commitments  
within Timor -Leste. The period of 
stay is limited to 30 consecutive 
days per entry.  
 
(ii) Employees of a foreign 
commercial presence : 
 
Supervisors, Directors and technical 
specialists .  
 
Subject to a labor market test, which will 
take into account the development of the 
national market, foreign service suppliers 
established in Timor -Leste may hire 
foreign employees qualified for 
superviso ry, directing or technical 
functions . 
 
The period of stay is limited to 6 months, 
with the possibility of extension for a 
period of 2 years.  
 
(iii) Contract Service Supplier s and 
Independent Professionals : 
 
Subject to a labor  market test, foreign 
natural persons who have obtained a 
contract to supply a service in Timor -Leste 
or are employed by a foreign -based 
service supplier that has obtained a 
contract to supply a service in Timor -
Leste, shall be granted entry for the 
maximu m period of 60 days per year with 
no extension.  
Fiscal measures   1), 3), 4)   Tax for monthly income or wage up to 
US$ 500 is 0% for residents, and 10% for 
amounts above US $ 500, while for non -
residents the tax rate is 10% flat.    
  WT/ACC/SPEC/TLS/3  
 
- 4 - Modes of supply: (1) Cross -border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or sub -sector  Limitations on Market Access  Limitations on National Treatment  Additional 
commitments  
II. SECTOR -SPECIFIC COMMITMENTS  
1. BUSINESS SERVICES  
A. Professional Services  
a. Legal Services (CPC 861**)  
Advisory services on foreign and 
public international law  1)  None 
2)  None 
3)  Foreign legal practitioners are required to 
have a local partner (joint venture) with 
Timorese co -lawyers.  
4) Unbound , except as indicated in the 
horizontal commitments.  1)  None 
2)  None 
3)  Foreign legal practitioners must have practiced as 
qualified lawyers in their home jurisdiction for at 
least 5 years.  
4)  Unbound , except as indicated in the horizontal 
commitments.   
e. Engineering services (CPC 8672**)  
CPC 86721 -86726, 86729  1)  None 
2)  None 
3)  None 
4) Unbound , except as indicated in the 
horizontal commitments.  1)  State projects or works in their area of professional 
qualification up to the value of US $ 25,000.00 are 
reserved for national citizens . 
2)  None 
3)  State projects or works in their area of professional 
qualification up to the value of US $ 25,000.00 are 
reserved for national citizens . 
4)  Unbound , except as indicated in the horizontal 
commitme nts.  
h. Medical and dental services (CPC 9312)  
j. Services provided by midwives, nurses, 
physiotherapists and para -medical 
personnel (CPC 93191)  1)  None 
2)  None 
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  None 
2)  None 
3)  None 
4)  Unbound  – Validity of practice licen ces/health 
professional registration for foreigners are shorter 
than for nationals.   
F. Other Business Services  
l. Investigation and Security Services 
(CPC 873**)  
– Guard Services (CPC 87305)  1)  None 
2)  None 
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  None 
2)  None 
3)  None 
4)  Unbound , except security staff and the Security 
Director must be a Timorese.   
2. COMMUNICATION SERVICES   
C. TELECOMMUNICATION SERVICES  
Commitments are taken consistent with "Notes for Scheduling Basic Telecom Services Commitments" (S/GBT/W/2/Rev.1) and "Market  Access Limitations on Spectrum 
Availability" (S/GBT/W/3)  
a) Voice Telephone Services (7521)  1)  Unbound  
2)  Unbound  
3)  None 
4) Unbound , except as indicated in the 
horizontal commitments.  1) Unbound  
2) Unbound  
3) Unbound  
4) Unbound , except as indicated in the horizontal 
commitments.  Please refer to the 
attached Reference 
Paper  
 
b) Packet -switched data transmission 
services (7523**)  1)  Unbound  
2)  Unbound  1) Unbound  
2) Unbound   
  WT/ACC/SPEC/TLS/3  
 
- 5 - Modes of supply: (1) Cross -border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or sub -sector  Limitations on Market Access  Limitations on National Treatment  Additional 
commitments  
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  3) Unbound  
4) Unbound , except as indicated in the horizontal 
commitments.  
c) Circuit -switched data transmission 
services (7523**)  1)  Unbound  
2)  Unbound  
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  1) Unbound  
2) Unbound  
3) Unbound  
4) Unbound , except as indicated in the horizontal 
commitments.  
f) Facsimile services (7521**+7529**)  1)  Unbound  
2)  Unbound  
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  1) Unbound  
2) Unbound  
3) Unbound  
4) Unbound , except as indicated in the horizontal 
commitments.  
D. AUDIOVISUAL SERVICES  
c. Radio  and Television Services 
(CPC 9613)  1)  None 
2)  None 
3)  Participation of foreign individuals or 
legal persons in the share capital of a 
media corporation may not exceed 30%.  
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  None 
2)  None 
3)  None 
4)  Unbound , except as indicated in the horizontal 
commitments.  
  
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES   
A. General construction work for buildings 
(CPC 512, except 51260)  
B. General construction work for civil 
engineering (CPC 513)  
C. Installation and assembly work 
(CPC 514+516)  
D. Building completion and finishing work 
(CPC 517)  1)  Unbound  
2)  None 
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  Unbound  
2)  None 
3)  None 
4)  Unbound , except as indicated in the horizontal 
commitments.   
- Construction work for hotels, 
restaurants  and similar buildings for 
Tourism purpose (CPC 51260)  1)  None 
2)  None 
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments. Notwithstanding 
the horizontal commitments, five work 
visas for supervisors are guaranteed.  1)  None 
2)  None 
3)  If construction suppliers wishing to apply for 
investment incentives and benefits offered by the 
Government of Timor -Leste and to be eligible for 
granting incentive certificate, minimum values for 
investment or re -investment should be:  
• US$ 50,000  if it's a national;  
• US$ 500,000 if it's a foreign;  
• US$ 250,000, if it's a joint venture.  
 Construction suppliers 
holding incentive 
certificates are 
guaranteed tax benefits 
and customs incentives  
 
Construction suppliers 
holding incentive 
certificate may lease land 
for 50 years, renewable 
for period of 25 up to 
100 years.   
  WT/ACC/SPEC/TLS/3  
 
- 6 - Modes of supply: (1) Cross -border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or sub -sector  Limitations on Market Access  Limitations on National Treatment  Additional 
commitments  
Foreign suppliers are required to bring innovative 
technology and transfer skills and knowledge to 
local employees.  
 
4)  Unbound , except as indicated in the horizontal 
commitments.  
4. EDUCATIONAL SERVICES  
C. Higher education services (CPC 923)  
E. Other education services (CPC 929)  1)  None 
2)  None 
3)  The institutions may assume the form of 
a foundation, association, cooperative or 
limited liability company by quotas or 
joint-stock company.  
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  None 
2)  None 
3)  None 
4)  Unbound , except as indicated in the horizontal 
commitments.   
5. FINANCIAL SERVICES  
A. ALL INSURANCE AND INSURANCE RELATED SERVICES  
a. Life, accident and health insurance 
services (CPC 8121)  
b. Non -life insurance services (CPC 8129)  
c. Reinsurance and retrocession 
(CPC 81299*)  
d. Services auxiliary to insurance 
(including broking and agency services) 
(CPC 8140)  1)  Unbound  
2)  Unbound  
3)  None 
4)  None 1)  Unbound  
2)  Unbound  
3)  None, except the board of directors must be 
composed of a minimum of three members, all of 
which must be residents of Timor -Leste  
4)  Unbound,  except as indicated in the horizontal 
commitments.   
B. BANKING AND OTHER FINANCIAL SERVICES (EXCLUDING INSURANCE)  
a. Acceptance of deposits and other 
repayable funds from the public 
(CPC 81115 -81119)  
c. Financial leasing (CPC 8112)  1)  Unbound  
2)  Unbound  
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  Unbound  
2)  Unbound  
3)  If banking service suppliers wishing to apply for 
investment incentives and benefits offered by the 
Government of Timor -Leste and to be eligible for 
granting incentive certificate, minimum values for 
investment or re -investment should be:  
• US$ 50,000 if it's a national;  
• US$ 500,000 if it's a foreign;  
• US$ 250,000, if it's a joint venture  
 
Foreign suppliers are required to bring innovative 
technology and transfer skills and knowledge to 
local employees.  Although banking 
services are not 
classified as productive 
sectors, the supplier is 
still eligible to apply for 
incentive certificate with 
limited benefits.  
 
Banking service suppliers 
holding incentive 
certificate are not  
guaranteed tax benefits 
and customs incentives.  
  
  WT/ACC/SPEC/TLS/3  
 
- 7 - Modes of supply: (1) Cross -border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or sub -sector  Limitations on Market Access  Limitations on National Treatment  Additional 
commitments  
 
4)  Unbound , except as indicated in the horizontal 
commitments.  Banking service suppliers 
holding incentive 
certificate may lease land 
for 50 years, renewable 
for period of 25 up to 
100 years.  
b. Lending of  all types, incl., inter alia, 
consumer credit, mortgage credit, 
factoring and financing of commercial 
transaction (CPC 8113)  
(Other Deposit Taking Institution/ 
Microfinance)  1)  Unbound  
2)  Unbound  
3)  None 
4) Unbound , except as indicated in the 
horizontal commitments.  1)  Unbound  
2)  Unbound  
3)  None 
4)  Unbound , except as indicated in the horizontal 
commitments.   
d. All payment and money transmission 
services (CPC 81339)  
(Money Transfer Operations)  1)  Unbound  
2)  Unbound  
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  Unbound  
2)  Unbound  
3)  None 
4)  Unbound , except as indicated in the horizontal 
commitments.   
6. TOURISM AND TRAVEL RELATED SERVICES  
A. Hotels and restaurants (including 
catering) (CPC 641-643) 1)  None 
2)  None 
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  None 
2)  None 
3)  None 
4)  Unbound , except the tasks of receptionist, a 
servant in a bar, restaurant, or a hotel cannot be 
performed by foreign nationals.   
7. TRANSPORT SERVICES  
C. Air Transport Services  
- Maintenance and repair of aircraft 
(CPC 8868**).  
- Selling and marketing of air transport 
services.  
- Computer reservation system (CRS) 
services.  1)  None 
2)  None 
3)  None 
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  None 
2)  None 
3)  None 
4)  Unbound , except as indicated in the horizontal 
commitments.   
F. Road Transport Services  
(CPC 7121 -7124)  1)  None 
2)  None 
3)  Licence s to supply passenger transport 
services are subject to an economic needs 
test, to ensure adequate supply of the 
services to the Timorese public.  
4)  Unbound , except as indicated in the 
horizontal commitments.  1)  None 
2)  None 
3)  Public passenger transport services between Dili 
and Municipalities are exclusively reserved for 
Timorese operators.  
4)  Unbound , except as indicated in the horizontal 
commitment s.   
  WT/ACC/SPEC/TLS/3  
 
- 8 - Modes of supply: (1) Cross -border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or sub -sector  Limitations on Market Access  Limitations on National Treatment  Additional 
commitments  
11. RECREATIONAL, CULTURE AND SPORTING SERVICES  
Other recreational services  
(CPC 96499**)  
- Leasing or rental services of seagoing 
pleasure boats  1)  None 
2)  None 
3)  Licence s for foreign operators are subject 
to Economic Needs Tests to ensure 
equitable participation in the market by 
local enterprises.  
4) Unbound , except as indicated in the 
horizontal commitments.  1)  None 
2)  None 
3)  None 
4)  Unbound , except as indicated in the horizontal 
commitments.   
 WT/ACC/SPEC/TLS/3  
 
- 9 - 
 
  REFERENCE PAPER  
Scope  
The following are definitions and principles on the regulatory framework for the basic 
telecommunications services.  
Definitions  
Users  mean service consumers and service suppliers.  
Essential facilities  mean faciliti es of a public telecommunications transport network or service that  
(a) are exclusively or predominantly provided by a single or limited number of suppliers; 
and 
(b) cannot feasibly be economically or technically substituted in order to provide 
a service.  
A major supplier  is a supplier which has the ability to  materially affect the terms of participation 
(having regard to price and supply) in the relevant market for basic telecommunications services as 
a result of:  
(a) control over essential facilities; or  
(b) use of its position in the market.  
1. Competitive s afeguards  
1.1 Prevention of anti -competitive practices in telecommunications  
 Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone 
or together, are a major supplier from engaging in or continuing anti -competitive prac tices.  
1.2 Safeguards  
 The anti -competitive practices referred to above shall include in particular:  
(a) engaging in anti -competitive cross -subsidization;  
(b) using information obtained from competitors with anti -competitive results; and  
(c) not making av ailable to other services suppliers on a timely basis technical  
information about essential facilities and commercially relevant information which 
are necessary for them to provide services.  
2. Interconnection  
2.1 This section applies to linking with supp liers providing public telecommunications transport 
networks or services in order to allow the users of one supplier to communicate with users of 
another supplier and to access services provided by another supplier, where specific 
commitments are undertake n. 
2.2 Interconnection to be ensured  
 Interconnection with a major supplier will be ensured at any technically feasible point in 
the network. Such interconnection is provided.  
(a) under non -discriminatory terms, conditions (including technical standards and 
specifications) and rates and of a quality no less favourable than that provided for 
its own like services or for like services of non -affiliated service suppliers or for its 
subsidiaries or other affiliates;  
(b) in a timely fashion, on terms, conditions (including technical standards and 
specifications) and cost -oriented rates that are transparent, reasonable, having WT/ACC/SPEC/TLS/3  
 
- 10 - 
 
  regard to economic feasibility, and sufficiently unbundled so t hat the supplier need 
not pay for network components or facilities that it does not require for the service 
to be provided; and  
(c) upon request, at points in addition to the network termination points offered to 
the majority of users, subject to charges t hat reflect the cost of construction of 
necessary additional facilities.  
2.3 Public availability of the procedures for interconnection negotiations  
 The procedures applicable for interconnection to a major supplier will be made publicly 
available.  
2.4 Transparency of interconnection arrangements  
 It is ensured that a major supplier will make publicly available either its interconnection 
agreements or a reference interconnection offer.  
2.5 Interconnection: dispute settlement  
 A service supplier requesting in terconnection with a major supplier will have recourse, either:  
 (a) at any time or  
(b)  after a reasonable period of time which has been made publicly known to 
an independent domestic body, which may be a regulatory body as referred to in 
paragraph 5 belo w, to resolve disputes regarding appropriate terms, conditions and 
rates for interconnection within a reasonable period of time, to the extent that these 
have not been established previously.  
3. Universal service  
Any Member has the right to define the kind of universal service obligation it wishes to 
maintain. Such obligations will not be regarded as anti -competitive per se , provided they are 
administered in a transparent, non -discriminatory and competitively neutr al manner and are 
not more burdensome than necessary for the kind of universal service defined by the Member.  
4. Public availability of licensing criteria  
 Where a licence is required, the following will be made publicly available:  
(a) all the licensing cr iteria and the period of time normally required to reach a decision 
concerning an application for a licence and  
(b) the terms and conditions of individual licences.  
 The reasons for the denial of a licence will be made known to the applicant upon request.  
5. Independent regulators  
 The regulatory body is separate from, and not accountable to, any supplier of basic 
telecommunications services. The decisions of and the procedures used by regulators shall be 
impartial with respect to all market participants.  
6. Allocation and use of scarce resources  
 Any procedures for the allocation and use of scarce resources, including frequencies, numbers 
and rights of way, will be carried out in an objective, timely, transparent and  
non-discriminatory manner. The current state of allocated frequency bands will be made 
publicly available, but detailed identification of frequencies allocated for specific government 
uses is not required.  
__________