RESTRICTED  
  
WT/ACC/COM/22  
 
11 September 2017  
(17-4872) Page: 1/6 
Working Party on the Accession of the  
Union of the Comoros  Original: English /French  
 
 ACCESSION OF THE UNI ON OF THE COMOROS  
ADDITIONAL QUESTIONS  AND REPLIES  
 The following submission, dated 1 September 2017 , is being circulated at the request of the 
Delegation of the Union of the Comoros.  
 
 
 
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  WT/ACC/COM/22  
 
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  Question 1 
With reference to F actual Summary, paragraph 25, tourism had been identified as 
strategic gro wth sector where government aimed at attracting foreign direct 
investment.  
 
So will investment incentives scheme be adopted for tourism sector with a view to 
attra cting more investors? If so, please provide more details or outlines of the scheme.  
 
Answer : 
 
Under the Accelerated Growth and Sustainable Development Strategy (SCADD 2015 –2019) the 
Comorian authorities have adopted four (04) strategic lines of action that  are complementary and 
interact to form the "Emerging Comoros" vision based on accelerated, diversified, inclusive and 
job-creating growth. It is action line 1 of the Accelerated Growth and Sustainable Development 
Strategy (SCADD 2015 –2019), entitled "Acce leration, diversification and sustainability of growth", 
which establishes the tourism priority.  
 
In order to accelerate and diversify growth, the Government pursues the following strategic 
objectives:  
 
 Promotion of growth poles;  
 Development of sectors wit h high sustainable growth potential.  
 
For the sector -based approach, the growth poles in which the country enjoys (existing or potential) 
comparative advantages, according to the information available, are the following:  
 
1. agriculture to ensure food and nutritional security, and export of agricultural products, with 
particular attention to agri -food processing and building the productive capacity of 
small -scale farmers;  
2. fisheries, for the better exploitation and processin g of fishery resources;  
3. development of the logistical and transport chain centred on Mutsamudu Port (at Anjouan) 
in order to make it a hub;  
4. tourism in order to upgrade the natural, cultural and historical heritage of the Union.  
 
OVERALL OBJECTIVE OF THE SCADD: TO ACHIEVE ACCELERATED, DIVERSIFIED, INCLUSIVE, 
JOB-CREATING GROWTH IN LINE WITH THE PRINCIPLES OF SUSTAINABLE DEVELOPMENT  
 
Extract from the schematic framework of the SCADD  and the P1 programme on acceleration and 
diversification of growth under action line 1  
 
PROGRAMMES  SUB-PROGRAMMES  EXPECTED RESULTS  MAIN ACTIONS  
ACTION LINE 1 : ACCELERATION, DIVERSIFICATION AND SUSTAINABILITY OF GROWTH  
P1: Acceleration and 
diversification of 
growth  SP1: Promotion of growth 
poles Increase in domestic 
production and exports  Establish the programme 
framework for growth poles  
Establish the regulatory 
and institutional framework 
for growth poles  
Identify growth poles  
 
Indicators  to make tourism a lever of economic growth and sustainable development  
 
Indicators  Baseline 2012  Minimum targets 2019  
Tourist arrivals  22,800 49,000 
Tourist expenditure in the country  US$13.7 million  US$35.6 million  
Number of direct jobs  550 1,800 
 
  WT/ACC/COM/22  
 
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  Table 5: Projected financing scheme for SCADD (2015 -2019) in KMF billion  
 2015  2016  2017  2018  2019  Average  2015 -2019  
Cost of SCADD 85.87  95.16  104.98  116.19  130.44  106.52  
Operating expenses  44.95  48.22  52.27  56.86  61.37  52.737  
Investment expenditure  40.92  46.93  52.71  59.32  69.07  53.790  
 from own resources  7.68 9.16 10.56  11.96  13.61  10.592  
 
In terms of incentives for investment in the tourism sector, the revised new draft investment code, 
with World Bank support, establishes tourism among the priority sectors. The existing code 
provides that the procedure for conclusion of an establishment ag reement between the 
Government and the potential strategic investor may be applied to afford benefits that may go 
beyond the normal regime.  
 
Question 2 
Under Article 4.1 of [the] TBT Agreement, there is a provision for "Members shall ensu re 
that their central government standardizing bodies accept and comply with the Code of 
Good Practice for the Preparation, Adoption and Application of Standards in Annex 3 to 
this Agreement" which clause F of the Code prescribes that "Where international 
standards exist or their completion is imminent, the standardizing body shall use them, 
or the relevant parts of them, as a basis for the standards it develops".  
 
To ensure compliance with TBT Agreement obligations, we would like to ask why the 
Union of the Comoros adopted COMESA standards rather than standards of ISO in which 
COMESA has already been a member.  
 
We also would like to know whether the preparation of COMESA standards is in 
accordance with the G/TBT/1/Rev.13 Decisions and Recommendations adopted by the 
WTO Committee on Technical Barriers to Trade on principles and procedures to be 
observed for the development of international standards, guides and recom mendations 
including transparency, openness, impartiality and consensus, effectiveness and 
relevance, coherence, and to address the concerns of developing countries.  
 
Answer : 
 
The Union of the Comoros undertakes in the context of its WTO accession to conf orm to all the 
rules of the Organization, through its basic agreements, and an action plan for their 
implementation has been submitted, subject to appropriate transition periods.  
 
In fact, the COMESA standards referred to are ISO standards, and COMESA is a member of the 
ISO. These are standards to which COMESA has adhered and which are referred to the least 
developed country Members for domestication. There are no COMESA standards as such.  
 
The Union of the Comoros implements the standards recognized by t he WTO to ensure respect for 
the obligations under the TBT Agreement. It has an action plan for implementation of the 
WTO agreements, including the TBT Agreement.  
 
COMESA, like all regional economic communities, provides for a range of principles and rule s 
totally consistent with those of the WTO. The corpus of COMESA provisions is notified to the WTO 
in the context of notifications concerning regional arrangements.  
 
Thus, the establishment of standards and their implementation must be consistent with the  
decisions and recommendations of the WTO Committee on Technical Barriers to Trade (document 
G/TBT/1/Rev.13) concerning the principles and procedures to be observed for the development of 
international standards, guides and recommendations, including trans parency, openness, 
impartiality and consensus, effectiveness and relevance, coherence, and to address the concerns 
of developing countries.  
 WT/ACC/COM/22  
 
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  Question 3 
Document Job ACC/COM/5, paragraph 117:  
"117. ONICOR had a monopoly on the import of or dinary rice, i.e., rice consisting of 
more than 5%  broken rice (Law No.  82-17/AF of 13  August  1982). The purpose of this 
monopoly was to keep prices affordable. Imported rice was sold to wholesale traders 
and marketing was entirely in the hands of the priv ate sector. He added that in special 
cases, such as a shortage of rice on the market, the government could issue import 
authorizations for ordinary rice to private operators. In response to a specific question, 
he said that there were no quotas allocated a mong approved beneficiaries."  
Since ONICOR had a monopoly on the import of ordinary rice which consisting of more 
than 5% broken rice in order to keep prices affordable,  could the Comoros clarify more 
on this issue?  
Answer : 
This monopoly not only helps the  population by maintaining price stability for what is a staple 
product, but also contributes to securing the supply, particularly in terms of regularity, by 
protecting the country from any disruptions that could have political and social repercussions 
owning to the economic impact that could result from spiralling prices and speculation. However, 
the approach has been to combine this role of the state with a partnership involving the domestic 
private sector by associating the main actors of the distributio n chain – firstly as wholesale and 
semi-wholesale contractors/distributors financed by their bank, and then at the retail sales level 
through the retail traders. Supply operations are conducted through an international call for bids. 
Although a private ten dering procedure has been applied depending on the circumstances, it is 
always within the framework of the Government Procurement Code and monitored by the 
government procurement regulation authority.  
Question 4 
Paragraphs 287 and 288 of S ection IV.I(a) – Registration requirements for engaging in 
importing read as follows:  
"287. Prerequisites for the importation of superior quality rice are for importers to pay 
an annual duty of KMF 2  million to the General Tax and Property Administration ( AGID).  
288. The AGID levies a special activity licence fee on the importation of alcoholic 
beverages on an annual basis of KMF 1  million, KMF 750,000 for distributors and 
KMF 500,000 for bars and restaurants.  
While paragraph 326 of Section IV.I(f) – Impor t Licensing Procedures provides that:  
"326. It is not currently necessary to obtain prior authorization to engage in external 
trade. It should be noted that an import licence for superior quality rice was introduced 
in 2012 under the finance law. There is one exception to that rule." Since 2005 the 
finance law in force has provided for the issuance by AGID of an import licence for 
alcoholic beverages. The import and sales licence is issued annually subject to payment 
of a duty of:  
i. KMF 4  million for impor ters;  
ii. KMF 500,000 for distributors; and  
iii. KMF 250,000 for bars and restaurants."  
Could the Comoros clarify if the KMF 2  million "duty" referred to in paragraph 287 is a 
fee charged for an import licence? Is the "duty" mentioned in paragraph 287 char ged for 
obtaining the import licence mentioned in paragraph 326, the first sentence? Should the 
"duty" mentioned in paragraph 287 not be a fee charged for an import licence, what is 
the nature and rationale of that duty?  WT/ACC/COM/22  
 
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  Answer : 
It is a duty to be paid for  the licence under the General Tax Code, designed by the tax legislation 
as an excise tax. It is an automatic duty which is not intended to be restrictive in any way.  
Question 5 
Could the Comoros clarify which of the fees mentioned in para graphs 288 and 326 are 
fees charged for the issuance of licences to import alcohol, and which are fees charged 
for licen ses to market/sell alcohol? In addition, could the Comoros explain why the 
numbers mentioned in paragraph 288 do not match those mention ed in paragraph 326?  
Answer : 
This is a mistake. The figures provided in paragraph 326 concern the issuance of licences for 
alcoholic beverages under the General Tax Code as provided in the following Articles:  
Article 194 – Import licences for alcoholic bev erages are subject to prior authorization from the 
competent authority.  
Article 195 – The licence is annual.  
Article 196 – The rate payable for the licence is:  
1. KMF 4  million for importers;  
2. KMF 500,000 for traders;  
3. KMF 250,000 for bars and restaurants.  
It is worth noting that the answer to Question 12 in document WT/ACC/COM/5 – Questionnaire on 
Import Licensing Procedures refers to an import licence fee for alcohol of KMF 4,000,000.  
This is true for the reference concerning an import licence fee of KMF 4  million for alcohol.  
Question 6 
Since Comoros reply the answer on Q uestion 41  of WT/ACC/COM/17  to clarify the tax 
for importing luxury rice, could Comoros inform the progress of the correction on rice 
luxury application?  
Answer : 
This duty is  an excise duty and not an import tax, nor is it a measure that could in any way 
constitute an import restriction. The licence is an automatic one involving the payment of a duty 
provided for under the General Tax Code in force and the annual finance laws adopted by 
parliament.  
Question 7 
According to paragraph 77 of document JOB/ACC/COM/5, Comoros used the Brussels 
Definition of Value as a basis for calculating customs duties and other customs charges. 
We would like to seek clarification f rom Comoros whether this method applied the 
reservation as stated in Article 20.1 and 20.2 of the Customs Valuation Agreement.  
 
Answer : 
 
What is stated in paragraph 77 of document JOB/ACC/COM/5 on the foreign trade regime, with 
regard to the application of  the Brussels Definition of Value, relates to past practice at the time the 
memorandum was drafted. However, the transaction value has been applied for two (2) years 
(Finance Law, and subsequently the new Customs Code adopted in 2015, promulgated and appli ed 
since 2016).  WT/ACC/COM/22  
 
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The new Customs Code, which prefigures the implementation of the COMESA CET, explicitly 
recognizes the transaction value under the WTO Customs Valuation Agreement on the 
implementation of customs valuation. However, some practices inconsistent with transac tion value 
in certain cases had persisted, but will be totally eliminated in accordance with the action plan for 
implementation of the WTO basic agreements, in particular the specific commitment to a 
transitional period of three years under the Customs Val uation Agreement.  
 
Thus, the reservation provided for in Article 20:1 of the Customs Valuation Agreement, which 
affords developing countries a delay of five years for application from the date of entry into force 
for such Members of the WTO Customs Valuat ion Agreement done on 12 April 1979, is no longer 
relevant to the Union of the Comoros.  
 
It is the reservation provided for in Article 20:2 of the Customs Valuation Agreement, which 
affords developing countries a delay of three years for application, that  is most relevant to the 
case of the Union of the Comoros.  
 
Indeed, this reservation provides that in addition to paragraph 1, developing country Members not 
party to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and 
Trade done on 12 April 1979 may delay application of paragraph 2(b)(iii) of Article 1 and Article  6 
for a period not exceeding three years following their application of all other provisions of this 
Agreement.  
 
This option has to be notified to the Director -General of the WTO in accordance with Article 20:2 of 
the Agreement. See the action plan for implementation of the WTO Agreements following 
accession for the transitional period not exceeding three years.  
 
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