RESTRICTED  
  
WT/ACC/COM/10  
7 October  2016 
(16-5436) Page: 1/13 
Working Party on the accession of  
the Union of the Comoros  Original:  French  
 
  ACCESSION OF THE UNION OF THE COMOROS  
QUESTIONNAIRE ON STATE TRADING  
 The following communication, dated 7 October  2016, is being circulated at the request of the 
delegation of the Union of the Comoros.  
 
_______________  
 
 
Pursuant to Article XVII:4(a) of t he GATT 1994 and paragraph 1 of the Understanding on the 
Interpretation of Article XVII, the Government of the Union of the Comoros wishes to notify that 
there are currently no state trading enterprises in the Comoros in accordance with the working 
definit ion contained in paragraph 1 of the above -mentioned Understanding.  WT/ACC/COM/10  
- 2 - 
  QUESTIONNAIRE ON STATE TRADING  
Definition of State trading1 
Governmental and non -governmental enterprises, including marketing boards, which have been 
granted exclusive or special rights o r privileges, including statutory or constitutional powers, in the 
exercise of which they influence through their purchases or sales the level or direction of imports 
or exports . 
I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. Identification of state tradin g enterprises.  
National Office for the Importation and Marketing of Ordinary Rice (ONICOR).  
B. Description of products affected (including tariff item number(s) encompassed in 
product description).  
Ordinary rice is rice that is more than 5 % broken . Accordi ng to the Harmonized Commodity 
Description and Coding System (HS), the tariff item number  of the aforementioned product is : 
10 06 40 10.  
 
 [Does your country maintain enterprises covered by the provisions of Article XVII ? If 
so, list the products or groups  of products for which State enterprise is maintained or 
for which an enterprise has exclusive or special privileges.]  
No. 
II. REASON AND PURPOSE  
A. Reason or purpose for establishing and/or maintaining State trading enterprise.  
 [State for each product th e reason and purpose for introducing and maintaining the 
enterprise (it should be indicated, for example, whether the purpose or the effect of the 
enterprise is to prevent prices to consumers from exceeding certain maximum limits, or to 
protect domestic pr oducers by the control of imports and/or the purchase of domestic 
supplies at above world price levels, or to facilitate export sales, or to make it possible to 
establish or administer a stabilization arrangement).]:  
 
The main purpose of ONICOR is to ensur e that the national market is supplied with ordinary rice 
at a price affordable to the entire Comorian population by holding the price at a more competitive 
level. It is therefore responsible for importing and marketing ordinary rice for popular 
consumptio n. It is responsible for import an d distribution to local wholesalers and not directly to 
retailers . It therefore holds the state monopoly in this field, pursuant to Article 3 of 
Law No. 82-17/AF of 1 3 August  1982. 
B. Summary of legal basis for granting th e relevant exclusive or special rights or 
privileges, including legal provisions and summary of statutory or constitutional 
powers.  
ONICOR's main purpose is that of importing and marketing ordinary rice on the domestic market . 
Accordingly,  it holds the sta te monopoly in this field, pursuant to Article 3 of Law No. 82-17/AF of 
13 August  1982: "The Office's mission shall be to exercise a State monopoly in respect of the 
import and marketing o f rice for popular consumption.  
                                                
1 This is the working definition for the purposes of notification and does not alter substantive disciplines 
of Article XVII, see Understanding on the Interpretation of Article XVII of the GATT 1994.  WT/ACC/COM/10  
- 3 - 
  To this end, it is tasked with:  
- Estimating actual needs in terms of annual consumption of ordinary rice nationwide;  
- Monitoring and verifying variations in stock and sales levels with merchants;  
- Monitoring the market price for rice;  
- Prospecting the most favourable rice markets;  
- Allocating quotas among approved beneficiaries;  
- Ensuring application of the approved standard prices throughout the distribution chain 
and prosecuting anyone infringing them for speculation."  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRIS E 
A. Summary statement providing overview of operations of the state trading enterprise.  
Import and marketing of ordinary rice . For each import operation, an international call for bids is 
issued to designate the supplier, in line with the procedures in th e Public  Procurement Code in 
force. For marketing at the local level, approved standard prices are set for wholesalers, 
semi-wholesalers and retailers.  
B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise.  
ONICOR enjoys exclusive rights to import and distribute ordinary rice domestically to wholesalers.  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation.  
No entity other than ONICOR is authorized to import and market ordinary rice . Where an importer 
contravenes this monopoly, the imported rice is seized by the Customs Authority and handed over 
to ONICOR after negotiations between the importer and the Ministry of Fina nce and ONICOR.  
D. How import/export levels are determined by the state trading enterprise.  
Import levels vary from year to year . The volume of imports is set after determining needs and on 
the basis of a statistical study of consumption in previous years and periods . Indeed, ONICOR 
draws up supply plans geared to the specific needs of consumers and to periods of activity, such 
as traditional celebrations, Ramadan, and the like . It seeks to optimize the efficiency of supply and 
endeavours to target its oper ational business effort towards periods of higher consumption.  
E. How export prices are determined  
ONICOR is exclusively an import company . Its product is intended for the domestic market . It 
exports nothing . Hence, there is no need to establish modalities  for determining export prices.  
F. How the resale prices of imported products are determined  
The resale price of rice imported by ONICOR is determined as follows:  
 Consumer price = Cost price out of Customs (cost price + single customs duty) + ONICOR margi n 
(4.74 %) + Wholesale margin (9.54 %) + Semi -wholesale margin (3.23 %) + Retail margin 
(5.88 %). 
G. Indicate whether long -term contracts are negotiated by the state trading enterprise ; 
whether the state trading enterprise is used to fulfil contractual obligat ions entered 
into by the government.  
ONICOR currently has no long term contracts . Projects along those lines are under study.  
H. Brief description of market structure. [Describe, item by item, the functioning of such 
enterprises and state in particular:  WT/ACC/COM/10  
- 4 - 
  - Whether the enterprise deals with exports or with imports, or both;  
ONICOR handles exclusively the importation of ordinary rice  
- Whether private traders are allowed to import or export and, if so, on what 
conditions ; whether there is free competition betw een private traders and the 
State -trading enterprise.  
ONICOR holds the monopoly on import and marketing of ordinary rice (> 5 % broken rice) . Any 
trader engaging in an import operation for ordinary rice is in breach of the law.  
- The criteria used for deter mining the quantities to be exported and imported;  
Import quantities are determined on the basis of statistics for previous years and periods as well 
as consumption patterns.  
- How export prices are determined and how the mark -up on imported products is 
determined ; how export prices and resale prices of imports compare with domestic 
prices;  
In order to maintain an affordable price for consumers, the State has put in place a mechanism 
that acts as a safety valve . It modulates the Single Customs Duty which it  levies on rice imports 
according to variations in the price of the product on the world market.  
- Whether long -term contracts are negotiated by the State -trading enterprise ; 
whether State -trading methods are used to fulfil contractual obligations entered 
into by the government?  
For some time now ONICOR  has not nego tiated any long -term contracts.  
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I -III)   
  WT/ACC/COM/10  
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TABLE I  
STATE TRADING: NATIONAL OFFICE FOR THE IMPORTATION AND MARKETING OF ORDINARY RICE (ONICOR)  
Statist ical information, imports (2012, 2013, 2014)  
Description of 
product(s) 
(including 
HS number(s))  Total quantity 
imported  Quantity imported by state 
trading enterprise  Average import price  Average 
representative 
domestic sales 
price  Mark -up National 
producti on 
1 2 3 4 5 6 7 
Ordinary rice:  
10 06 40 10  144,735.89 tonnes  138,654.75 tonnes  
(2012 : 50,244.75 tonnes  
2013: 40,310 tonnes  
2014: 190,232 tonnes)  200,573.33 KMF/tonne  283,000 KMF/tonne  0 0 
 
 
   
  WT/ACC/COM/10  
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TABLE II  
STATE TRADING: NATIONAL OFFICE FOR THE IMPORTATI ON AND MARKETING OF ORDINARY RICE (ONICOR)  
Statistical information, exports  
Description of 
product(s) 
(including HS 
number(s))  Total quantity 
exported  Quantity exported 
by state trading 
enterprise  Average 
procurement price  Average 
representative 
domestic sales 
price  Average export 
price  National 
production  
1 2 3 4 5 6 7 
- No exports  
  WT/ACC/COM/10  
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TABLE III  
STATE TRADING: NATIONAL OFFICE FOR THE IMPORTATION AND MARKETING OF ORDINARY RICE (ONICOR)  
Statistical i nformation, domestic activities  
Description of product(s) 
(including HS number(s))  Domestic purchases by 
state trading enterprise  National production  Domestic sales by state 
trading enterprise  National consumption  
Ordinary rice : 10 06 40 10  0 0 138,654.75 (2012, 2013 , 2014)  138,654.75  WT/ACC/COM/10  
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  QUESTIONNAIRE ON STATE TRA DING  
I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. Identification of state trading enterprises:  
NATIONAL HYDROCARBON CORPORATION (SCH)  
B. Description of products affected (including tariff item number(s) encompassed in product 
description).  
Gasoline : 27 10 12 20;  
Gas oil : 27 10 19 20 ; and 
Petroleum : 27 10 19 10.  
[Does your country maintain enterprises covered by the provisions of Article XVII?  If so, list the 
products or groups of products for which State enterprise is maintained or for which an enterprise  
has exclusive or special privileges.]  
No. 
II. REASON AND PURPOSE  
A. Reason or purpose for establishing and/or maintaining State trading enterprise.  
 [State for each product the reason and purpose for introducing and maintaining the 
enterprise (it should b e indicated, for example, whether the purpose or the effect of the 
enterprise is to prevent prices to consumers from exceeding certain maximum limits, or to 
protect domestic producers by the control of imports and/or the purchase of domestic 
supplies at ab ove world price levels, or to facilitate export sales, or to make it possible to 
establish or administer a stabilization arrangement).]:  
The primary purpose of the National Hydrocarbon Corporation (SCH) is to ensure a supply of 
petroleum products on the do mestic market at an affordable price for the whole population of 
Comoros, by controlling the price to keep it at a more competitive level . It is accordingly tasked 
with importing and distributing/marketing petroleum products . It is responsible for importat ion and 
for local distribution to retailers through filling stations . It thus holds a State monopoly in this 
regard, pursuant to the provisions of Article 3 of Law No. 80-27/AF of 3 0 December  1980. 
B. Summary of legal basis for granting the relevant exclus ive or special rights or 
privileges, including legal provisions and summary of statutory or constitutional 
powers.  
SCH's primary purpose is to handle the import and distribution/marketing of petroleum products 
on the domestic market . It therefore  holds a S tate monopoly in this field, pursuant to the 
provisions of Article 3 of Law No. 80-27/AF of 3 0 December  1980, which reads as follows:  
"SCH's mission shall be to exercise a State monopoly in respect of the import and 
distribution/marketing of petroleum prod ucts."  
It fulfils the following purposes:  
- monopoly on the import, manufacture and packaging of petroleum products and their 
derivatives;  
- transport and delivery of said petroleum products;  
- monopoly on the operation of all facilities or filling station s for the storage and direct or 
indirect marketing of those products;  
- sale of those products and the provision of all services related to such sale;  WT/ACC/COM/10  
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  - acquisition of equity in firms operating in a similar or related business area as its own, or 
which mig ht help develop its business.  
- and, generally, all commercial, financial, industrial, securities or real -estate transactions 
directly or indirectly related to its corporate mission or any similar or related purpose.  
[A description of the legal provisions should be included in so far as this has not been 
submitted in  earlier notifications .] 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
A. Summary statement providing overview of operations of the state trading enterprise.  
Import and mar keting of petroleum products . For each import operation, an international call for 
bids is issued to designate the supplier, in line with the procedures in the Public Procurement Code 
in force . For marketing at the local level, approved standard prices are  set for filling stations.  
 
B. Specification of exclusive or special rights or privileges enjoyed by the state trading 
enterprise.  
SCH enjoys exclusive rights to import and distribute petroleum products dom estically to filling 
stations.  
C.  Type of entitie s other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation.  
No entity other than SCH is allowed to import and distribute/market petroleum products.  
D. How import/export levels are determ ined by the state trading enterprise.  
Import levels vary from year to year . The volume of imports is set after determining needs and on 
the basis of statistical studies of consumption in previous years and periods . Indeed, the SCH 
draws up supply plans gea red to the specific needs of consumers and to periods of activity, such 
as traditional celebrations, Ramadan, and the like . It seeks to optimize the efficiency of supply and 
endeavours to target its operational business effort towards periods of higher con sumption.  
E. How export prices are determined  
The SCH is exclusively an import company . Its product is intended for the domestic market . It 
exports nothing . There is therefore no need to establish procedures for determining export prices.  
F. How the resale  prices of imported products are determined  
SCH resale prices are determined as follows:  
Consumer price = Cost price out of Customs (unit cost price + single customs duty) + SCH margin 
(75 KMF/litre) + service station margin (100 KMF/litre).  
G. Indicate wh ether long -term contracts are negotiated by the state trading enterprise ; 
whether the state trading enterprise is used to fulfil contractual obligations entered 
into by the government.  
SCH c urrently has no long term contract s. Studies  along those lines are  being considered . 
H. Brief description of market structure. [Describe, item by item, the functioning of such 
enterprises , and state in particular:  
- Whether the enterprise deals with exports or with imports, or both;  
The SCH engages exclusively in the imp ortation of petroleum products.  WT/ACC/COM/10  
- 10 - 
  - Whether private traders are allowed to import or export and, if so, on what 
conditions ; whether  there is free competition between private traders and the 
state trading enterprise.  
SCH holds the monopoly on import, distribu tion and/or marketing of petroleum products . Any 
trader engaging in an import operation for petroleum products is in breach of the law.  
- The criteria used for determining the quantities to be exported and imported;  
Import quantities are determined on the basis of statistics for previous years and periods as well 
as consumption patterns, according to storage capacities.  
- How export prices are determined and how the mark -up on imported products is 
determined ; how export prices and resale prices of imports c ompare with domestic 
prices;  
In order to maintain an affordable price for consumers, the State has put in place a mechanism 
that acts as a safety valve . It modulates the Single Customs Duty which it levies on imports of 
petroleum products according to vari ations in the price of the product on the world market.  
- Whether long -term contracts are negotiated by the state trading enterprise ; 
whether State -trading methods are used to fulfil contractual obligations entered 
into by the government.  
For some time now  the SCH has not negotiated any long -term contracts.  
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLES I -III)   
  WT/ACC/COM/10  
- 11 - 
 
TABLE I  
STATE TRADING: NATIONAL HYDROCARBON CORPORATION (SCH)  
Statistical information, imports (2012, 2013, 2014)  
Description of 
product(s) 
(inclu ding HS 
number(s))  Total quantity imported  Quantity imported by state 
trading enterprise  Average 
import 
price  Average 
representative 
domestic sales 
price  Mark -up National 
production  
Tonnes  Litres  Tonnes  Litres  
- gasoline  
 2012:  
 2013:  
 2014:  31 079,60 
 9 846, 447 
10 852, 943 
10 380, 212  41 984 615 
 12 963 593 
 14 791 615 
 14 229 407 31 079,60  
 9 846, 447 
10 852, 943 
10 380, 212  41 984 615 
 12 963 593 
 14 791 615 
 14 229 407  650 KMF/litre  0 0 
- gas oil  
 2012:  
 2013:  
 2014:  88 724,44  
27 131,783  
33 511,01 3 
28 081,640  108 917 452 
 34 160 141 
 40 664 063 
 34 093 248 88 724,44  
27 131,783  
33 511,013  
28 081,640  108 917 452 
 34 160 141 
 40 664 063 
 34 093 248  550 KMF/litre  0 0 
- petroleum  
 2012:  
 2013:  
 2014:  44 840,111  
13 253,346  
16 115,616  
15 471,149   57 372 873 
 16 945 065 
 20 536 019 
 19 891 789 44 840,111  
13 253,346  
16 115,616  
15 471,149   57 372 873 
 16 945 065 
 20 536 019 
 19 891 789  345 KMF/litre  0 0   
  WT/ACC/COM/10  
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TABLE II  
STATE TRADING: NATIONAL HYDROCARBON CORPORATION (SCH)  
Statistical information, exports  
Descri ption of 
product(s) 
(including HS 
number(s))  Total quantity 
exported  Quantity exported 
by state trading 
enterprise  Average 
procurement price  Average 
representative 
domestic sales 
price  Average export 
price  National 
production  
Gasoline:  
Gas oil:  
Petroleum:  0 0  650 KMF/litre  
550 KMF/litre  
345 KMF/litre  0 0 
   
  WT/ACC/COM/10  
- 13 - 
 
TABLE III  
STATE TRADING: NATIONAL HYDROCARBON CORPORATION (SCH)  
Statistical information, domestic activities  (2012, 2013, 2014 ) 
Description of product(s)  
 (including HS number(s))  Domestic purchases by  
state trading enterprise  National 
production  Domestic sales by state 
trading enterprise  National consumption  
Gasoline : 27 10 12 20  
Gas oil : 27 10 19 20  
Petroleum : 27 10 19 10  0 0 Gasoline :  41 984 615  
Gas oil : 108 917 452  
Petroleum : 57 372 873  Gasoline : 41 984 615  
Gas oil : 108 917 452  
Petroleum : 57 372 873  
 
__________