WT/TPR/M/36 9/Add.1  
 
28 September  2018 
(18-6027) Page: 1/94 
Trade Policy Review Body  
11 and 13 April 2018  Original: English/anglais/inglés  
Spanish/espagnol/español  
 
  TRADE POLICY REVIEW  
MONTENEGRO  
MINUTES OF THE MEETI NG 
Addendum  
Chairperson: H.E. Mr. Eloi Laourou  (Benin ) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by  Montenegro .1 
 
 
Organe d 'examen des politiques commerciales  
11 et 13 avril 2018 
EXAMEN DES POLITIQUE S COMMERCIALES  
MONTÉNÉGRO  
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E. M. Eloi Laourou  (Bénin ) 
Le présent document contient les questions écrites communiquées à l 'avance par les 
Membres de l 'OMC, leurs questions additionnelles, et les réponses fournies par  Monténégro .1 
 
 
Órgano de Examen de las Políticas Comerciales  
11 y 13 de abril de 2018 
EXAMEN DE LAS POLÍTICAS COMERCIALE S 
MONTENEGRO  
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo. Sr. Eloi Laourou  (Benin) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por  
Montenegro .1 
 
 
_______________  
 
                                                
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/369/Add.1  
 
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  CONTENTS  
 
ARGENTINA  ................................ ................................ ................................ ......................  3 
AUSTRALIA  ................................ ................................ ................................ ......................  5 
BRAZIL  ................................ ................................ ................................ .............................  9 
CANADA  ................................ ................................ ................................ .........................  10 
CHINA  ................................ ................................ ................................ ............................  11 
CHINA – ADDITIONAL QUESTIO NS ................................ ................................ ................  14 
COSTA RICA  ................................ ................................ ................................ ...................  24 
EUROPEAN UNION  ................................ ................................ ................................ .........  27 
ICELAND  ................................ ................................ ................................ ........................  41 
JAPAN  ................................ ................................ ................................ ............................  42 
MEXICO  ................................ ................................ ................................ ..........................  50 
MOLDOVA, REPUBLIC OF  ................................ ................................ ................................  53 
SAUDI ARABIA, KINGDO M OF  ................................ ................................ ........................  57 
THAILAND  ................................ ................................ ................................ ......................  66 
TURKEY  ................................ ................................ ................................ ..........................  70 
UKRAINE  ................................ ................................ ................................ ........................  74 
UNITED STATES  ................................ ................................ ................................ .............  83 
UNITED STATES FOLLOW -UP QUESTIONS  ................................ ................................ ...... 94 
 WT/TPR/M/369/Add.1  
 
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  ARGENTINA  
Preguntas Informe WT/TPR/S/369  
 
POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
 
En el párrafo 3.21 se hace referencia a que Montenegro considera un producto ser originario de un 
país en el que haya sido sometido la última transformación sustancial económicamente justificable.  
 
1. ¿Podrían agregar información adicional respecto de qué porcentaje de transformación 
sustancial se refiere?  
 
Answer : 
 
Article 25 on non -preferential origin of goods of the Customs Law2 prescribes that goods whose 
production involve more than one country shall be deemed to originate in the country where they 
underwent their last substantial, economically justifiable processing (treatment, final treatmen t, 
further treatment) resulting in new products or representing a crucial stage of manufacture.  
 
The Regulation on implementation of the Customs Law3 and related Annexes 4 and 5 (for textiles 
and some other products) prescribe last substantial transformati on. For determination of last 
substantial transformation for products that are not included in those Annexes customs authority 
of Montenegro, interpret Article 25 on the case -by-case basis.  
 
En el párrafo 3.61 se mencionan que las empresas o empresarios qu e inicien actividades en 
municipios menos desarrollados obtienen una reducción sustancial en los impuestos directos.  
 
2. ¿Existe la posibilidad que empresas extranjeras participen en actividades económicas en 
los municipios menos desarrollados? En caso afi rmativo, deseamos conocer si el mismo 
régimen de exención tributaria se aplica para todas las empresas.  
 
3. ¿Podrían ampliar información respecto al tipo de actividades que pueden realizar las 
empresas para obtener el beneficio?  
 
Se detalla en el párrafo 3 .63 que Montenegro ha notificado únicamente en mayo de 2015 respecto 
de los programas de ayuda, en donde indicó que en 2013 y 2014 se habían aplicado 8 y 
10 programas de subvenciones, respectivamente.  
 
4. En consecuencia, se desea saber podrían brindar más  detalles sobre si Montenegro 
mantiene estos programas de ayuda a la producción.  
 
Answers 2. - 4. Under the conditions and manner prescribed by national legislation, foreign 
companies, the same as domestic, have the opportunity to participate in economic ac tivities in less 
developed municipalities.  
 
The provisions of Article 27 of the Law on Tax Administration4 prescribe the manner and procedure 
for general registration of taxpayer to the competent tax authority. Under that Law, the application 
for registration can be inter alia, submitted by a foreign legal entity or an organization that 
generates income in Mon tenegro, or by a foreign physical person who generates income or owns 
property in Montenegro. In order to identify taxpayers within 15 days from the day of submitting 
the application for registration, the tax authority shall issue a decision on the registr ation and 
assign to a taxpayer a Tax Identification Number.  
 
                                                
2 Official Journal of Republic of  Montenegro", No 07/02, 38/02, 72/02, 21/03, 31/03, 29/05  and 66/06 
and "Official Journal of Montenegro", No 21/08, 01/11, 39 /11, 40/11, 28/12, 62/13  and 71/17. 
http://www.mif.gov.me/en/library/zakoni   
3 Official Journal of Republic of Montenegro", No 15/03 and 81/06 and "Official Journal of Montenegro", 
No 38/08, 28/12, 11/16 and 40/17. http://www.mif.gov.me/en/library/uredbe?alphabet=lat   
4 Official Journal of Republic of Montenegro" , No 65/01, 80/04 and 29/05 and "Official Journal of 
Montenegro", No 73/10 , 20/11, 28/12, 08/15 and 80/17.  WT/TPR/M/369/Add.1  
 
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  By the provisions of Article 31 of the Law corporate profit tax5 a newly established legal entity that 
starts performing activities in economically underdeveloped municipalities, has the right t o CPT 
reduction by 100% for the first eight years. In addition, a taxpayer in the same areas employing a 
person based on contract for an indefinite period or for at least 5 years is released from the 
obligation of paying the calculated and withheld persona l income tax for a period of four years 
from the date of the establishment of the employment relationship.  
 
Tax exemptions do not apply to a taxpayer operating in the primary production of agricultural 
products, transport, shipyards, fisheries, steel, tra de and catering, with the exception of primary 
catering facilities.  
 
The first year in which the right to tax exemption is exercised begins on the day of entering 
registration of legal entity into the Central Registry of Economic Entities.  
 
As for the prog rams of support the notification covering support in 2015 and 2016 is under 
preparation and will be submitted as soon as possible.  
 
POLÍTICAS COMERCIALES, POR SECTORES  
 
En el párrafo 4.49 se hace referencia que Montenegro ha aplicado diversos programas para apoyar 
las empresas del sector manufacturero.  
 
5. ¿Podrían indicar si los programas de apoyo se aplican también a las empresas de capital 
extranjero? De ser afirmativa la respuesta ¿las condiciones son las mismas que deben 
cumplir las empresas locales ? 
 
Answer:  
 
Foreign companies are eligible to use all programmes mentioned in paragraph 4.49 under the 
same conditions applicable to domestic companies, if that mentioned foreign companies are 
registered in Montenegro.  
 
                                                
5 Official Journal of Republic of Montenegro", No  65/01, 12/02 and 80/04 and "Official Journal of 
Montenegro", No 40/08, 86/09, 40/11, 14/12, 61/13  and 55/16. WT/TPR/M/369/Add.1  
 
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  AUSTRALIA  
Report by Montenegro (WT/TPR/G/369)  
3 Trade in Services  
3.10 Trade in Services  
3.10.1 Tourism  
  
Page 25, Paragraph 3.78  
  
The report states that there has been growth in the tourism sector in the latest review period. To 
achieve further growth, Montenegro is placing importance  on air -accessibility and is currently 
considering the further improvement of airport capacity.  
 
Question 1  
As part of its initiative to improve airport capacity, is Montenegro considering opening up airport 
management and ownership to foreign investment?  
 
MNE answer: The Government of Montenegro has engaged the International Finance Corporation 
(IFC) as part of the World Bank Group with specific experience in finding private financing to be 
the lead advisor for modelling structures at Tivat, Podgorica and Berane airports. The preparation 
of tender documentation for the realization of investments at Tivat airport can be expected in 
2019. The planned financing model for the realization of this investment is through PPP (finding a 
strategic partner / private i nvestor investment) where the minimum obligation of the state 
(through capital budget or borrowing) will be to cover the costs of expropriation. Aerodrom 
Podgorica and Tivat are recognized as Government key infrastructure projects and have been 
included in to the Single Project Pipeline List.  
 
Report by Montenegro (WT/TPR/G/369)  
3 Trade in Services  
3.10 Trade in Services  
3.10.1 Tourism  
  
Page 25, Paragraph 3.79  
  
The report states that in December 2017 Montenegro enacted a new piece of legislation on 
Tourism  and Hospitality, which includes new provisions relating to support to investors.  
  
Question 2  
Could Montenegro provide more information on what new support is being provided to investors in 
the tourism and hospitality sectors, including whether this inclu des support to foreign investment?  
 
MNE answer:  The new Law on Tourism and Hospitality was adopted on December 29, 2017 by 
the Parliament of Montenegro, and entered into force on January 18, 2018 ("Official Gazette of 
Montenegro" No.002/18, 013/18).  
 
The law prescribes the promotion of tourism development and the introduction of tourist zones, 
and also stipulates the passing of the Incentive Program in these zones. The Program will be 
adopted by the Government at the proposal of the Ministry in charge of tourism or by the 
Municipal Assembly according to their priorities, and the implementation will be carried out under 
the competence of this Ministry, the NTO of Montenegro and the local government units, from the 
funds that will be determined by the bud get of the state of Montenegro and the local governments. 
Pursuant to the authorizations from the Law on Tourism and Hospitality, it is envisaged that the 
bylaws, which will provide more detailed incentives for tourism, will be aopted within one year 
from the day the Law enters into force. According to the program of work for 2018, the Ministry 
plans to adopt the Regulation on incentives in the field of tourism and the Regulation on Tourist 
Development Zones.  
 
Support to investors in Montenegro under the sa me conditions applies to domestic and foreign 
investors.  
 WT/TPR/M/369/Add.1  
 
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  Report by Montenegro (WT/TPR/G/369)  
3 Trade in Services  
3.10 Trade in Services  
3.10.3 Banking sector  
  
Page 28, Paragraph 3.97  
  
The report states that, of the fifteen banks operating in Montenegro,  ten are foreign -owned, with 
the foreign banks' subsidiaries holding more than three quarters of the assets in the banking 
sector.  
  
Question 3  
What restrictions, if any, are placed on foreign banks in Montenegro?  
 
MNE answer: The system promotes full equality of domestic and foreign investors. In terms of 
establishment and operation of a bank in Montenegro, the same regulations apply equally to 
domestic and foreign entities and there are no restrictions for foreign natural/lega l entities.  
 
Report by the Secretariat (WT/TPR/S/369)  
Summary  
  
Page 11, Paragraph 23  
  
The report states that overbanking is a potential risk to the profitability of the banking sector in 
Montenegro.  
  
Question 4  
What steps, if any, is Montenegro taking to address the risk of overbanking?  
 
MNE answer:  In the licensing procedure, the Central Bank of Montenegro (CBCG) considers the 
conditions for obtaining a bank license prescribed by the Banking Law. The legal fram ework does 
not provide the possibility for the CBCG to evaluate a bank's request from the perspective of 
presumable market size or needs, which is also in line with the EU Directive 2013/36. Only when in 
carrying out its responsibilities CBCG determines th at a bank violates the legal and other norms, or 
in some way jeopardizes its operations and/or its depositors, the CBCG can take all measures 
prescribed by law, including the measure of revoking a bank license.  
 
Report by the Secretariat (WT/TPR/S/369)  
1 Economic Environment  
1.2 Recent Economic Developments  
1.2.4 Structural Reforms  
1.2.4.3 Competition Policy  
  
Page 22, Paragraph 1.17  
  
The report states that, during the review period, Montenegro undertook several legislative and 
institutional changes to com petition policy to harmonise domestic regulations with those of the EU. 
However, enforcement remains relatively weak due to insufficient staffing and expertise as well as 
a lack of full independence in the decision -making process.  
 
Question 5  
What further legislative and institutional changes to competition pol icy are needed to fully 
harmoniz e the domestic regulations of Montenegro and the EU?  
 
MNE answer: The Law on protection of Competition which came into force on 8 October 2012 is 
mostly harmonised with  the EU acquis communautaire in the area of Competition protection. It 
introduces key acquis -based provisions like wider investigative powers (i.e. possibility to raid 
business premises without prior notice); leniency programme and sanction policy. After t he entry 
into force of this law, the Agency was established as an independent body having legal personality  
in February 2013, and the Agency's decisions are final.  
 WT/TPR/M/369/Add.1  
 
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  In March 2018 , Amendments to the Law on Protection of Competition came into force, which were 
approached with the aim of forming a single body that would perform tasks related to the 
protection of competition and state aid. Namely, in the amendments, inter alia,  it is e nvisaged that 
the powers and actions of the State Aid Control Commission come under the jurisdiction of the 
Agency for Protection of Competition.  
 
Amendments to the Law on Protection of Competition is not the subject of harmonization with 
specific sources of the European Union law and with ratified international conventions. However, 
such changes have essentially derived from the process of accession to the European Union, 
through the obligation to establish an operationally independent body responsible for  state aid, 
which must have the powers and resources necessary for full implementation of the rules on state 
aid. 
 
Question 6  
What steps, if any, does Montenegro propose to take during the next review period to improve 
enforcement in this area?  
 
MNE answer:  For the purpose of more efficient handling of competent courts, i.e. full 
commitment to this issue, permanent education of judges of the Administrative and especially of 
Misdemeanor Courts is necessary.  
 
Report by the Secretariat (WT/TPR/S/369)  
4 Trade Policies by Sector  
4.4 Services  
4.4.1 Financial Services  
4.4.1.1 Banking  
  
Page 137, Paragraph 4.96  
  
The report states that the State of Montenegro does not own, or have shares in, any bank directly. 
However, certain majority state -owned companies do  own shares in some banks operating in the 
Montenegrin market.  
 
Question 7  
Are any Montenegrin state -owned companies majority shareholders in banks operating in 
Montenegro?  
 
MNE answer:  There are no banks with Montenegrin state -owned companies as majority 
shareholders.  
 
Report by the Secretariat (WT/TPR/S/369)  
4 Trade Policies by Sector  
4.4 Services  
4.4.1 Financial Services  
4.4.1.1 Banking  
  
Page 138, Paragraph 4.100  
  
The report states that a law on financial leasing, factoring, purchase of claims, microcredit and 
credit -guarantee activities was adopted by the Parliament of Montenegro in October 2017 and will 
enter into force in April 2018. This law regulates other fina ncial services (leasing, factoring and 
purchase of receivables), as well as the establishment, operation and control of the business 
companies providing these financial services. This law draws upon existing provisions in the 
existing Law on Banks.  
  
Ques tion 8  
Are there any financial services regulators in Montenegro other than the Central Bank and, if there 
is more than one responsible agency, how do they differ in their responsibilities? Will the Central 
Bank of Montenegro maintain the supervisory respo nsibility for the regulations contained in this 
law, or does this law provide for an additional regulatory authority?  
 WT/TPR/M/369/Add.1  
 
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  MNE answer:  In accordance with the Law on financial leasing, factoring, purchase of claims, 
microcredit and credit -guarantee activities, the Central Bank of Montenegro is the only regulator of 
these financial services in Montenegro, including supervision relating to the protection of financial 
services users.  
  
The CBCG will maintain the supervisory responsibility for the regulations contained in the Law.  
 
Question 9  
How does this law deal with foreign financial service suppliers?  Are they treated the same as local 
financial services suppliers?  
 
MNE answer:  According to this Law, foreign financial service suppliers are treated the sam e as 
local financial service suppliers in terms of the right to establishment and there are no restrictions.  
 
Report by the Secretariat (WT/TPR/S/369)  
4 Trade Policies by Sector  
4.4 Services  
4.4.2 Telecommunications  
 
Page 143, Paragraph 4.119  
  
The report states that in recent years, there have been price reductions for call terminations on 
both fixed and mobile networks. While prices for call termination on mobile networks are largely in 
line with the European average (which was 1.04 euro cents/ minute in July 2016), call termination 
prices are significantly above the European average for fixed lines (where the average price was 
0.43 euro cents/minute at January 2016).  
  
Question 10  
Do telecommunication carriers in Montenegro apply differential in ternational mobile call 
termination charges based on country of origin?  
 
MNE answer:  Operators in Montenegro apply different international mobile call termination 
charges based on a country of origin.  
 WT/TPR/M/369/Add.1  
 
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  BRAZIL  
4.  TRADE POLICIES B Y SECTOR  
Telecoms (2.C)  
4.129  
 
Question(s)  
Could EKIP elaborate on the extension and the measures, if there are any, already adopted in the 
regulation of retail prices?  
Answer by Montenegro  
According market analysis of relevant retail markets, EKIP regulate retail prices of services for 
operators with significant market power on specific market. Currently, EKIP is regulating retail 
prices on retail markets for access on fixed location, fixed voice calls (national and international) 
and ADSL Internet access.  
4.  TRADE POLICIES  BY SECTOR  
Telecoms (2.C)  
4.117  
 
Question(s)  
Could Montenegro specify and elaborate on the measures taken to improve the investment level?  
Answer by Montenegro  
The legislative and regulatory environment is harmonized with the EU framework. The policy of 
development in this area is clearly regulated and predictable. Competition is present and the 
market is open. The Council of Foreign investors in so -called “white book 2017”, proclaimed 
telecom and ICT sector for the one with the simplest and the most effect ive for investments in the 
country.  
 
 WT/TPR/M/369/Add.1  
 
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  CANADA  
9.  GOVERNMENT REPOR T 
9.4.8  
 
Question(s)  
As noted in paragraph 4.8 of the Government Report, Montenegro submitted a notification of 
indicative dates for category  B and C commitments under the TFA in May 2017.   
Can Montenegro provide an update on the status of its notification for definitive dates?   
Answer by Montenegro  
The activities of the National Trade Facilitation Committee and competent authorities during the 
last year were mainly focused on ongoing project s and on developing a comprehensive joint 
reform plan - the TF Strategy. Since the Strategy sets the timeframe for the full implementation of 
category B and C commitments, the following activities will be focused on notification for definitive 
dates, as we ll as on all others TFA notification requirements.   
9.  GOVERNMENT REPOR T 
9.4.8  
 
Question(s)  
Can Montenegro provide an update on when it expects to notify its transparency obligations under 
Article 10.6.2 and 12.2 of the TFA, in accordance with its Categor y A commitments?  
Answer by Montenegro  
The activities of the National Trade Facilitation Committee and competent authorities during the 
last year were mainly focused on ongoing projects as well as on developing a comprehensive joint 
reform plan - the TF Str ategy. Since the Strategy is set and adopted the next activities will focus 
on all TFA notification requirements.   
 WT/TPR/M/369/Add.1  
 
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  CHINA  
Questions based on Report by the Secretariat  
 
Page 136, para 4.88  
"It also undertook additional commitments in the form of a reference paper on postal and courier 
services, relating to such aspects as the prevention of anti -competitive practices, universal service 
and the independence of the regulatory body."  
 
Question 1:  We notice that the commitments on postal and courier serv ices are included in the A 
to D items under Article 1, 2, 3 of the Schedule of Specific Commitments on Services of 
Montenegro: As the universal service obligation were mentioned, there might be licensing system. 
Licensing system might need investors to ful fill specific universal service obligation and/or pay 
universal service indemnity fund. Do Montenegro allow foreign investors provide postal and courier 
services independently?  
 
MNE answer:  Yes, Montenegro allows foreign investors to provide postal and co urier services, 
under the same conditions as for domestic investors.  
 
Postal services are performed in accordance Law on Postal Services ("Official Gazette of MNE" 
No. 57/11 and 55/16), general conditions of postal operators and the acts of the Universal P ostal 
Union .  
 
Does foreign capital need licensing approval for to invest in postal and courier service sector?  
 
MNE answer:  The rules are the same for domestic, as well as for foreign investors of postal 
sector. A person authorized to provide postal services must for providing commercial postal 
services, to be registered in the register by filing the application, and for provi ding universal postal 
services, to possess a license issued by the Agency.  
 
Do they need to fulfill specific universal service obligation and/or pay universal service indemnity 
fund?  
 
MNE answer:  For obtaining a special license and for obtaining the licen se, a one -time fee has to 
be pa id. In addition to these fee, the owner of special licenses and licenses, as well as commercial 
postal operators, pay an annual fee for performing postal services. The fee is paid proportionally to 
the achieved income, and ma ximally 1% of the achieved annual income.  
 
Funds from fees are the income of the Agency and they are paid to a special account 
(compensation fund), and they are used to regulate the postal services market and to cover the 
possible loss of performing univer sal postal service of the universal postal operator.  
 
The universal postal operator is Post of Montenegro.  
 
Question 2:  Does Montenegro have any plan on further opening of postal and courier service 
sector?  
 
MNE answer:  The Postal service development Strategy will be adopted this year and it will further 
define the directions of development of this area.  
 
Question 3:  Could Montenegro please further explain the specific content of prevention of anti -
competitive practices,  universal service, the independence of the regulatory body and other 
aspects mentioned in the "additional commitments"?  
 
MNE answer:  The market of postal services is competitive, and the Law on Amendments to the 
Law on Postal Services from 2016 stipulate s that after the expiration of the special licence for 
universal postal operator by 2027, the universal postal operator in the future will be selected on 
basis of a public tender.  
 
Universal postal service shall be specific postal service of a prescribed q uality and standard, 
provided in continuity, without discrimination, to which access shall be ensured under equal WT/TPR/M/369/Add.1  
 
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  conditions and at an affordable price for all users of postal services in domestic and international 
postal transport.  
 
Universal postal serv ice shall include clearance, sorting, transport and delivery of:  
1) letter -post items weighing up to 2 kg;  
2) postal parcels weighing up to 10 kg;  
3) cecogrammes weighing up to 7 kg without charge;  
4) recorded (registered and insured) postal items;  
5) court letters and letters in the administrative procedure.  
 
Universal postal service shall include postal services in domestic and international postal transport.  
 
Universal postal service shall also include delivery of parcels weighing up to 20 kg in international 
postal transport.  
 
Universal postal service shall be:  
- available to all users of postal services in the entire territory;  
- offered in identical form to  all users who fulfill the same or similar conditions;  
- available without discrimination (arising from political, religious and ideological 
reasons);  
- continuous, except in the event of force majeure;  
- developed in accordance with the technical, economi c and social environment and 
demands of the users of services.  
 
Universal postal operator shall provide universal postal service to all users, every business day, 
but not fewer than five days a week, with minimum:  
- one collection of postal items;  
- one de livery of postal items, except in special circumstances and geographic 
conditions, with the exception of up to 10% of the population in rural and scarcely 
populated geographic areas, where at least one delivery a week or placement of 
cluster mailboxes on c ommon locations shall be provided, according to the access 
point density model.  
 
Based on the criteria, the independent regulatory authority may lay down other method for the 
provision of universal postal service.  
 
The regulatory body (Agency for Electroni c Communications and Postal Services) is legally 
separate from, and not accountable to, any supplier of postal and courier services. The decisions of 
and the procedures used by the regulatory body will be impartial with respect to all market 
participants.  
 
In performing regulatory and other tasks, the Agency may not accept or ask the instructions from 
state and other bodies and organisations or other persons.  
 
Question 4:  Could Montenegro please provide a list of laws and regulations relating to postal and  
courier service?  
 
MNE answer:  Hereby, you can find the list of laws and regulations relating to postal and courier 
services:  
 
1. Law on Postal Services ("Official Gazette of MNE" No. 57/11 and 55/16)  
 
Bylaws  
 
1. Regulation on the provision of postal services and the use of postal network of universal 
postal operators in case of extraordinary circumstances ("Official Gazette of MNE" 
No. 43/15)  
2. Rulebook on the amount of one -time fee and annual fee for performing  postal services 
("Official Gazette of MNE" No. 57/12)  
3. Rulebook on the manner of issuing and usage of postal stamps ("Official Gazette of MNE " 
No. 60/13)  
4. Rulebook on performing Postal Services ("Official Gazette of MNE", No. 45/17)  WT/TPR/M/369/Add.1  
 
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  5. Rulebook on n omenclature of postal services ("Official Gazette of MNE " No. 81/17)  
6. Decision on the Adoption of General Conditions for performing the Universal Postal Service 
of the Post of Montenegro ("Official Gazette of MNE " No.36 / 17)  
7. Rulebook on the manner of keeping the accounting and net cost calculation of the Universal 
Postal Operator ("Official Gazette of MNE", No. 37/17)  
8. Rulebook on the type and manner of submitting of postal operators data ("Official Gazette of 
MNE" No. 19/12)  
9. Rulebook on criter ia for determining the prices of universal postal services ("Official Gazette 
of MNE" No. 19/12)  
10. Rulebook on professional supervision in the field of Postal Services ("Official Gazette of MNE" 
No. 34/12)  
11. Rulebook on procedure and criteria for selec tion of the Universal Postal Operator ("Official 
Gazette of MNE ", No. 17/17)  
12. Rulebook on more detailed requirements for performing Universal Postal Services ("Official 
Gazette of MNE", 29/17)  
 WT/TPR/M/369/Add.1  
 
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  CHINA  – ADDITIONAL QUESTI ONS 
Part I. Questions based on R eport by the Secretariat  
 
Summary, para 27  
Montenegro's growth is likely to accelerate in the near future, driven largely by highway 
construction spending and tourism and energy investments, as well as related higher consumption.  
 
Question 1:  What are the development plans in terms of energy investment in Montenegro?  
 
Answer:  The directions and priorities for the development of the energy sector in Montenegro are 
defined in the Energy Development Strategy for Montenegro by 2030 and Action plan for its 
implementation for 5 years period.  
Please find a links for downloading thes e 2 documents:  
http://www.oie -res.me/index.php?page=akcioni -plan-razvoja -energetike  and  
http://www.oie -res.me/index.php?page=strategija -razvoja -energetike   
 
Question 2:  What investment policies has Montenegro formulated to meet the EU's requirements 
on the proportion of renewable energy?  
 
Answer:  The state of Montenegro, as a member of the E nergy Community, has committed for 
achieving a 2020 share of 33% of energy from renewable sources in the total final energy 
consumption. According to the adopted Report on the Implementation of the National Action Plan 
for the use of renewable energy by 20 20 (hereinafter: Report), for 2014, the amount of 31.9% 
was determined, and for 2015 the amount of 31.7% in total final energy consumption. Pursuant to 
the provisions of the Law on Energy ("Official Gazette of Montenegro", No. 5/16 and 51/17), the 
Ministry  of Economy is obliged to submit to the Government of Montenegro the Report for the 
previous two calendar years. In this regard, during this year, the preparation of the Report for 
2016 and 2017, which will determine the new share of energy from renewable sources in the total 
final energy consumption, is planned.  
 
On the basis of six implemented tender procedures, the realization of 18 concession contracts is 
currently being implemented, which envisages the construction of 37 SHPPs, while 16 energy 
concessi ons have been concluded on the basis of the energy permit, which envisages the 
construction of 16 HPPs with installed power below 1 MW. In accordance with the aforementioned, 
and on the basis of concluded concession contracts, a total of 53 small hydropowe r plants 
(hereinafter: SHPPs) are planned, from which the construction of 12 SHPPs has been completed so 
far. The total installed power of all sHPPs, whose construction is envisaged by the concluded 
contracts, is 94 MW, and the total annual production is a bout 310 GWh.  
 
Page 7, para 3.12  
Reforms aimed at spurring productivity growth – to address Montenegro's persisting production 
diversification and international competitiveness challenges – are under way in several areas (e.g. 
public finance management, en ergy, transport and telecommunications, business environment, 
reduction of the informal economy, foreign trade and investment facilitation).  
 
Question 3:  What reforms are being undertaken in the energy sector in Montenegro?  
 
Answer:  Bearing in mind the fac t that energy presents a pillar of the overall, long -term and 
sustainable development of each country and that the energy sector is one of the strategic sectors 
of the Montenegrin economy, the Government of Montenegro has decided to dedicate its full 
attention to both, development of the energy sector reform activities within this sector and the 
inclusion in regional and European energy market. Montenegro in the past decade has been going 
through a transition process, and therefore there are significant cha nges in the energy sector.  
 
With the establishment of Energy Community, the EU has expanded its internal energy market to 
South -eastern Europe and opened the possibility of expanding to all those who express interest. 
Energy Community is based on implement ation of the relevant Acquis communautaire and 
liberalization of domestic electricity and natural gas markets of Energy Community Member States.  
 
With the new Law on Energy adopted on 22 April 2010 Montenegro has transposed into its 
legislation the provisi ons from the Second Energy package.  WT/TPR/M/369/Add.1  
 
- 15 - 
 
   
After the adoption of Energy Law in 2016 Montenegro has implemented the directives and 
regulations of the European Union's Third Energy Package, which guarantees the investors 
favourable conditions for their investments  in the field of energy, as it is the case in the EU 
Member States.  
 
In accordance with the commitments of Montenegro under the Treaty, ERA has passed the 
Decision, in accordance with its competency under the Energy Law, on electricity market opening 
on 01 .01.2009 for all electricity customers (eligible customers), except for households, for which 
the market was opened after 01.01.2015 (in accordance with Treaty establishing Energy 
Community).  
 
In 2009, the Government of Montenegro -Privatization Council and  Capital Projects launched 
tendering procedure for recapitalization of Elektroprivreda Crne Gore (EPCG). In September 2009, 
the contract was signed for sale of a minority package of shares and simultaneous recapitalization 
with the Italian partner A2A s.p. a. The Italian company bought shares of minority shareholders 
and by this became the owner of 41.7% of the share capital.  
 
In addition to this Agreement, a Management Contract has been signed.  
 
The complex relations of strategic partners are occasionally c orrected, by singing Memorandums of 
understanding and annexes, which is followed by signing a new Shareholders Agreement in July 
2016 between the State of Montenegro and A2A S.P.A. and after that the Annex 1 of that contract 
in March 2017.  
 
In July 2017, A2AS.p.A ("A2A") announced its decision to exercise the put option in EPCG, 
pursuant to the envisaged by a shareholder agreement between the Government and A2A. The 
Government will buy €250 million of A2A's shares in EPCG, to be paid in seven annual instal ments.  
 
In 2009, the first phase of restructuring of vertically integrated EPCG was completed with the 
unbundling of FU Transmission from the ownership of vertically integrated company and 
establishment of a new independent energy company (CGES AD). Govern ment of Montenegro is 
owner of 55% of shares, Italian company Terna Reta Elettrica owns 22%, and rest of shares is 
owned by financial fond and other parties.  
 
Market Operator is, according to the new Law on Energy, categorized as new, legal, energy entity,  
established by the Government of Montenegro. Establishment of Electricity Market Operator 
(COTEE ltd) was concluded in August 2011. Government of Montenegro is 100% owner of the 
COTEE.  
 
Montenegrin Electric Power Distribution System (CEDIS d.o.o.), an ele ctric power distribution 
system operator was unbundled from EPCG and established in 2016.  EPCG is owner of 100% of 
shares.  
 
In 2017, the Electricity Exchange Company d.o.o. was established by COTEE, CGES and EPCG and 
the trading should begin by the end o f this year.  
 
Also, more information can be found in Trade policy review report by Montenegro in part 3.4 for 
energy.  
 
Page 7, para 3.12  
Grants, tax concessions, guarantees, concessional loans, debt write off and rescheduling continued 
to support investme nt, production and trade by, inter alia, encouraging micro, small and 
medium -sized enterprises (MSMEs), R&D, competitiveness improvements, cluster development, 
regional development, entrepreneurship and job creation.  
 
Question 4:  What specific supports may  the energy sector get?  
 
Answer:  Trough feed in tariffs, producers of electricity from renewable energy sources might 
grant privileged producer status. This status means that producers will receive incentive price for 
production and guaranteed purchase of electricity for the 12 year period.  
 WT/TPR/M/369/Add.1  
 
- 16 - 
 
  On the link below you can find secondary legislation on RES:  
http://www.oie -res.me/index.php?page=uredbe -i-pravilnici   
 
Question 5:  Are there rel evant preferential tax policies for renewable energy?  
 
Answer:  No, there are no preferential tax policies.  
 
Page 50, para 3.12  
"All ongoing trade facilitation projects are overseen by the NTFC. Under the NTFCs supervision, the 
first National Trade Facilit ation Strategy – intended to address systemic bottlenecks in 
cross-border trade and define a five -year framework for the implementation of concrete trade 
facilitation reforms – is under preparation and is expected to be adopted by the end of first quarter 
of 2018."  
 
Question 6:  Please brief on the main contents of the National Integrated Border Management 
Strategy.  
 
Answer:  Trade Facilitation Strategy is a horizontal public policy and the specific areas covered by 
this strategy are to a lesser extent covered by some existing strategic documents, such as 
Economic Reform Program 2018 -2020, Integrated Border Management Strategy 2014 -2018, the 
Business Strategy of the Customs Administration 2016 -2018. Using the mentioned documents as a 
common starting poin t, this Strategy brings added value as it represents a strategic approach to 
regulating this matter.  
 
The Trade Facilitation Strategy was adopted by the Government on the session held on 
29 March  2018. The Strategy represents a joint five -year reform plan for all competent authorities 
in the area of trade facilitation. The Strategy is also an answer to a n umber of obligations arising 
from the EU accession, WTO Trade Facilitation Agreement and regional CEFTA Additional 
Protocol  5. 
 
The Strategy envisages that by the end of December, 2022, Montenegro will eliminate 
cross-border administrative inefficiencies a ffecting its competitiveness, thus reducing the time for 
import, export and transit of goods by 50%, and the accompanying costs by 20%.  
 
To achieve this strategic goal, the Strategy defines five "operational goals" and, with respect to 
each, sets out a "se t of measures" to be implemented by the competent authorities. These goals 
are focused on improving transparency and access to information; harmonization and 
rationalization of formalities, documentation and fees; implementation of simplified and expedited  
procedures for clearance of goods; improving cooperation and increasing the effectiveness of 
border controls; and extension of automatic processing and electronic data exchange.  
 
The primary focus of the Integrated Border Management Strategy 2014 -2108 is security: "to 
ensure the efficient operation of border police and other departments that have jurisdiction over 
the state border in order to safeguard national security and the security of the European Union, 
particularly with regard to combating illegal m igration and cross -border crime".    
 
However, the IBM strategy also includes some trade facilitation -related objectives. In particular, 
within the framework of the strategic goal 4 -Interministerial cooperation, the Strategy defines the 
activities and meas ures for its improvement.  
 
Question 7:  Please brief on the integrated border management in Montenegro, including 
cooperation between domestic border agencies in Montenegro and cooperation with border 
agencies in other countries.  
 
Answer: The State Border C ommission, inter alia, deals with Integrated Border Management. This 
Commission is managed by the Ministry of interior, and members are representatives of all border 
services. An Integrated Border Management Strategy has been adopted with the Action Plan f or its 
implementation. The aim of the Strategy is to clearly define tasks, to provide guidance for 
development and planning within relevant bodies at the national, regional and local levels. All 
competent services quarterly inform the Commission of the act ivities carried out, and the 
Commission reports annually Government and proposes the Action Plan for the next year, which WT/TPR/M/369/Add.1  
 
- 17 - 
 
  the Government adopts. Integrated border management teams for the implementation of the 
Strategy and the Action Plan at the local leve l are educated at all border crossings.  
 
Page 104, para 3.150  
"Parallel imports are not forbidden; as long as the goods are original, they can enter the free 
market but sometimes are marketed in a way that the trademark owner might not consider 
favourable.  No data or other information on values of parallel imports is available from the 
authorities as the Customs Administration does not keep such records."  
 
Question 8:  Could you brief on specific laws and regulations on parallel imports in the fields of 
patent and trademark in Montenegro?  
 
Answer: Customs Administration  deals with goods under suspicion of IPR infringement in 
accordance with  Regulation  on the customs treatment of goods for which there is reasonable 
suspicion of infringing intellectual property  rights (Official Gazette of MNE no. 48/2016).  
 
Exception from the application of the Regulation is the original goods and parallel import which 
implies the trade  with original goods. Customs authority can only apply prescribed measures on 
goods for which exists the reasonable suspicion of being counterfeited.  
 
Specifically, Article 2 paragraph 1 point 3  of the Regulation stipulates that the Regulation shall not 
be applicable on the goods manufactured under the consent of the rights holder and for the goods , 
for which the rights holder authorized a person to manufacture a specific quantity of goods, which 
was manufactured in larger quantities from agreed by that person and the rights holder (parallel 
imports).  
 
In addition, the Patent Law and the Law on Trademarks don't have any specific provision on 
parallel imports.  
 
Page 105, para 3.153  
"The 2015 Law on Patents incorporates several novelties including the evidence of patentability 
which contributes to the leg al strength of the patent system in Montenegro. Patent owners must, 
not later than the expiration of the ninth year of the patent, submit the proof of patentability and a 
certified copy of the substantive examination performed by a contracting national or international 
IP Office (Article 32 of the Patent Cooperation Treaty) or an IP office that has signed a cooperation 
agreement with IPOM (Article 47). The revalidation of national Serbia and Montenegro State Union 
patents within six months of entry into for ce of the new Patent Law is allowed (Article 161). In 
addition, the 2015 Law allows the revalidation of European Patents extended to Serbia prior to 
1 March 2010 (when the agreement between Montenegro and the European Patent  Office (EPO) 
was signed) (Article 162), clarifies the procedure for obtaining a Supplementary Protection 
Certificate (SPC) (Article 87) and elaborates provisions with respect to court action."  
 
Question 9:  Are the evidence of patentability and evidence of  substantive examination referred 
hereto for extended protection of other countries' patents in Montenegro?  
 
Answer: The provisions of the Patent Law regarding the matter of patentability and substantial 
examination refers to all national patent applicatio ns, i.e. applications submitted in front IPO 
Montenegro regardless of whether it's been submitted by Montenegrin or foreign inventors. In 
other cases (on the basis of Patent Cooperation Treaty and Extension Agreement between the 
Government of Montenegro an d EPO) substantial examination is being done by EPO.  
 
Question 10:  What does the data on patentability mean?  
 
Answer: In accordance with the Law on Patents, a patent is legally protected invention in any field 
of technology. Patent enjoys legal protection if it is new, involves an inventive step and if it is 
susceptible of industrial application. The holder of the patent shall, not later than the expiration of 
the ninth year of the patent, submit the written evidence (evidence on patentability) that the 
invention protected by the patent meets the requirements of novelty, inventive step and industrial 
applicability. Written evidence shall be a certified translation into Montenegrin of a specification of 
a patent granted for a same invention in the course of s ubstantive examination of a patent 
application carried out by national and international offices in accordance with Article 32 of the 
Patent Cooperation Treaty, as well as other institutions, with which at the time of the submission WT/TPR/M/369/Add.1  
 
- 18 - 
 
  of the evidence of the patentability competent authority (IP Office of Montenegro) has signed a 
cooperation agreement.  
 
Question 11:  What are the contracting nations and IP Offices that has signed a cooperation 
agreement referred in this paragraph?  
 
Answer: So far,  IPO Montenegr o hasn't signed any Cooperation contract with any IPO which are 
in charge to perform substantial examination procedure, but the Office is undertaking first steps in 
this regard.  
 
Page 108, para 3.164  
"The application examination procedure can be accelerate d if: a procedure has been initiated 
before a court or an inspection authority, or a customs -related procedure has been initiated at the 
request of the court or the competent authority; and when the application for international 
registration of an industri al design has been filed. The holder of the industrial design rights may 
grant the rights to a registered industrial design based on a licence agreement."  
 
Question 12:  Can the application examination procedure be accelerated except for the industrial 
design? If yes, what are the specific provisions?  
 
Answer: The expedited (accelerated) procedure exists also in the Trademark Law. The trademark 
application may be examined in an expedited procedure: 1) in case of the procedure initiated 
before a court, inspec tion supervision procedure or customs related procedure at the request of 
the court, competent inspection authority or the customs authority; 2) if, at the request of the 
applicant, the registration must be done for the purpose of exercising the union or e xhibition 
priority right abroad; 3) if expedited registration needs to be done in accordance with other 
regulations. There are no provisions for expedited procedure in the Law on Designations of 
Geographical Origin and in the Patent Law.  
 
Page 131, para 4. 88 
"In July 2014, the Government approved a new Energy Strategy until 2030, with the focus on 
exporting electricity."  
 
Question 13:  What are Montenegro's energy and electricity development targets for 2030?  
 
Answer:  In order to  achieve the defined priorities, the Energy Policy and Energy Strategy have 
identified the following strategic commitments:  
 
• maintenance, revitalization and modernization of the existing and construction of new 
infrastructure for production, transmission  and distribution of energy;  
• reduction of dependence on electricity imports; (i) reducing the specific consumption of final 
energy, (ii) increasing energy production (primary and secondary) by using its own 
resources; and (iii) reducing energy losses fro m production to final consumption;  
• increasing energy efficiency;  
• increasing the share of the use of renewable energy sources;  
• Improvement of heating and/or cooling systems in buildings;  
• realization of strategic 90 -day reserves of petroleum products , in accordance with the 
dynamics and obligations of Montenegro towards the Energy Community or the 
European  Union;  
• exploration of oil and gas in the Montenegrin submarine and in the continental part, as well 
as coal in the Pljevlja and Berane basins;  
• the proactive role of the State policy in the efforts to ensure access to natural gas systems 
through international projects (Ionian -Adriatic gas pipeline, Trans -Adriatic gas pipeline, 
etc.); development of natural gas systems (including the construction o f regional gas 
pipelines and natural gas installations);  
• increasing the efficiency of energy companies' operations by reducing operational costs, 
technical and commercial energy losses, with justified return on investment;  
• Continuation of restructuring  of energy entities and timely adoption of further development 
plans;  
• Sustainable development of energy in relation to environmental protection and international 
cooperation in this field, in particular on reduction of greenhouse gas emissions in 
accorda nce with the Paris Agreement;  WT/TPR/M/369/Add.1  
 
- 19 - 
 
  • Encouraging the research, development, transfer and application of environmentally 
sustainable new technologies in the energy sector;  
• harmonization of the legislative and regulatory framework in line with EU requirements;  
• Creating an appropriate legislative, regulatory and institutional -financial framework to 
encourage private sector participation and investment in energy;  
• provision of social protection of vulnerable (vulnerable) customers of electricity;  
• reaching agr eements with neighboring countries on the optimal exploitation of common 
hydro -potential and water management, as well as the planning and construction of new 
electricity interconnection lines for liaison with these countries;  
• active international coope ration in the field of energy.  
 
Question 14:  Does Montenegro consider attracting foreign investments for energy infrastructure 
construction?  
 
Answer: One of the main priorities in energy sector is attracting foreign investors having in mind 
that Montenegro  is small country and small economy to finance big energy infrastructure.  
 
The Law on Foreign Investments stipulates that foreign investors enjoy national treatment, 
i.e. they can establish business organizations and invest into them on the territory of M ontenegro 
under conditions applicable to nationals establishing business organizations; the assets of foreign 
investors cannot be subject to expropriation, except when the law stipulates the existence of 
public interest to do so, which is done for a fee in  accordance with the law.  
 
Page 137, para 4.94  
"Under the Law on Taxes on Insurance Premiums (OG No. 27/04 as amended), a tax of 9% applies 
to all types of non -life insurance, except for: accident insurance, voluntary health insurance and 
agriculture insurance."  
 
Question 15:  Does the medical insurance of Montenegro cover traditional Chinese medicine 
therapy?  
 
Answer:  Mandatory health insurance, which is financed from the state budget, does not cover 
traditional Chinese medicine therapy. There are Law on Health Insurance and Law on Health 
Protection which prescribe health services and categories of health protections that are covered by 
the mandatory health insurance.  
 
Some of the insurance companies in Montenegro, selling private health insurance (not connected 
to the state compulsory health system),   recognize and cover costs of alternative medical 
treatments such as homeopathy and acupuncture, when applied by certified specialists in 
registered health institutions and when it is indicated as a treatme nt for an illness covered by the 
insurance contract.   
 
Page 141, para 4.47  
"The guiding strategy for the manufacturing sector is the "Industrial Policy of Montenegro Until 
2020", adopted in 2016. This integrates measures and activities for the manufacturin g sector 
which were incorporated into an earlier "Development Strategy of the Manufacturing Industry in 
Montenegro 2014 -2018"."  
 
Question 16:  Please specify the specific market measures for the manufacturing sector.  
 
Answer: In the process of implementatio n of the Industrial policy of Montenegro as well as 
previously adopted Development Strategy of the Manufacturing Industry it has been recognized 
the necessity for easier business access to the domestic and international markets.  
 
In line with this, severa l activities and measures have been planned and realized in accordance 
with annual Action plans for implementation of Industrial policy, aiming to improve the production 
and geographical diversification and specialization as well as to increase export comp etitiveness 
through the extension of the value chain, in order to generate higher value of export products and 
better integration into global value chains.  
 
In the previous period, specific measures were implemented especially in order to strengthen 
enterp rise export performance in priority sectors through increasing the competitiveness of WT/TPR/M/369/Add.1  
 
- 20 - 
 
  individual enterprises and improving the structure of exports. These activities mainly refers to 
improving of the concept of the enterprises organization into clusters an d strengthening of 
enterprise networks, realization of support programme for enterprises for implementation and 
certification based on standards, harmonization of technical regulations and standards, 
standardization of codification procedure and quality as surance of products for needs of defence 
purposes, support to internationalization of the enterprises and their business within foreign 
markets.  
 
The above mentioned activities are not only focused on manufacturing industry but also on other 
priority sect ors with potential for growth, and it is expected that through enhancement of 
competitiveness they will significantly contribute to reducing trade imbalance, by increasing 
exports and reducing imports in sectors in which Montenegro has comparative advantag e. 
 
Part II. Questions based on Report by the Montenegro  
 
Page 10, para 2.42  
Privatization process in Montenegro is being implemented in accordance with the Montenegrin 
Economic Policy, whose main objectives are reflected in the higher econo mic growth, ensuring new 
jobs and employment, increasing investments and export and creating the basis for higher income 
and growth of citizens' standard of living, together with the increase of competitiveness of the 
Montenegrin economy.  
 
Question 17:  Please brief on the progress of enterprise privatization in the energy sector in 
Montenegro.  
 
Answer:  Please see the answer on question 3.  
 
Page 11, para 2.45  
Therefore, the Government has opened all sectors to the PPP model (including healthcare and 
education, ports, energy, tourism and the valorizations of attractive locations in the costal and 
northern areas of Montenegro).  
 
Question 18:  Please brief on the progress and effectiveness of the application of the PPP model in 
Montenegro's energy sector and the plan for next steps.  
 
Answer:  Public -private partnership in Montenegro is regulated by the Law on Participation of 
Private Sector for the delivery of publi c services and the Law on Concessions.  
 
PPP represents a chance for the state / public authorities to revitalize infrastructure in line with 
planned action and private capital, especially having in mind insufficient budget funds. Also, PPP is 
an opportunit y for foreign companies to present themselves on the market and achieve a 
significant profit. Therefore, PPP has a special significance according to the Law on Foreign 
Investments, on the basis of which a foreign person can establish company in Montenegro or 
invest in it under the same conditions as domestic persons.  
 
An integral part of the PPP arrangement is definitely the field of awarding concessions, as well as 
the projects in energy sector and waste management.  
 
Energy Development Strategy of Monten egro by 2030 offers the following opportunities in the 
energy sector: Construction of the second unit of Thermo Power Plant "Pljevlja" (225 MW); Open 
pit mine "Maoce"; Construction of 4 hydro power plants on River Moraca with total power of 
238.4  MW; Const ruction of small hydro power plants; Renewable energy sources (wind, waste, 
biomass, solar energy); Projects aiming at improvement of energy efficiency.  
 
The Law on Public Private Partnership is under preparation. In accordance with the Work Program 
of the Government of Montenegro for 2018, adoption of this Law is planned for the second quarter 
of 2018. It is expected that this Law will regulate the conditions, method and procedure for 
approving projects as a public -private partnership, the rights and obli gations of public and private 
partners, the content and procedure for concluding a PPP contract, public -private partnership 
forms, selection procedures of the best bidder, and other issues of relevance to realization of the 
public -private partnership proje ct.  
 WT/TPR/M/369/Add.1  
 
- 21 - 
 
  As we stated before, the Government has opened all sectors to the PPP model, including energy, 
and after the adoption of the Law on Public Private Partnership we will have clear picture on 
conditions, method and procedure for approving projects as a public -private partnership.  
 
Also, Montenegro is open for all other models including DBOT arrangement, EPC -Engineering, 
Procurement and Construction, EPCM - Engineering, Procurement and Construction Management 
depending of the type of the project.  
 
Page 11 , para 2.46  
Recognizing investment policy as one of the key elements for development and improvement of 
the country's economy, Montenegro has defined increasing competitiveness through structural 
reforms and development of infrastructure, as the primary go al of economic policy, which will 
definitely contribute to creating conditions for higher inflows of domestic and foreign investments. 
Potential for economic growth has been recognized in the sectors of tourism, energy, transport, 
agriculture and manufactu ring Industry, which are identified as strategic priorities for development 
of Montenegro.  
 
Question 19:  What are the investment policies for the energy sector in Montenegro?  
 
Answer:  Please see the answer on question 13.  
 
Question 20:  Please brief on the  laying of undersea electricity transmission cable between 
Montenegro and Italy (the direction of electricity transmission, and the relationship with the 
planned circum -Mediterranean Sea electricity transmission cables).  
 
Answer:  Construction of an undersea direct current transmission cable with capacity of 1,000MW 
between Italy and Montenegro, which is an investment worth over 758 million euros, which is an 
obligation of Terna, and according to the information used by Terna - the value of the invest ment 
is higher, ie. about 1 billion EUR;  
 
Construction of 400 KV substation at the Montenegrin coast with connection transmission lines and 
transmission lines from Montenegrin coast to Pljevlja which is an investment worth around 
105 million euros and repr esents a commitment of CGES and construction of 400 KV transmission 
line with Serbia and / or Bosnia and Herzegovina.  
 
For the Montenegrin energy sector, the project of construction of an undersea cable for connection 
of electricity systems of Montenegro and Italy is particularly important. This project is important 
not only as an energy connection between Montenegro and I taly, but also as an energy connection 
between the countries of the Western Balkans and the European Union, as well as with regard to 
the security of energy supply and the development of the region as a whole.  
 
The cable is laid in the sea and currently C GES is working on the construction of land 
infrastructures. Completion of the SS Lastva, OHL Lastva -Pljevlja (section Lastva -Čevo and 
diversion of the existing 400 kV OHL Podgorica -Trebinje in SS Lastva) is envisaged in 2018, while 
completion of the constr uction of OHL Lastva -Pljevlja, (section Čevo -Pljevlja) is undergoing.  
 
Page 13, para 2.53 & 2.54 & 2.55  
"2.53. Within the Programme for supporting industry modernization, companies have the 
opportunity to reduce the cost of purchase of equipment, by subsid izing the costs up to 20%, 
more precisely up to €20,000, which will ultimately lead to the improvement of technological 
processes, products and services and increase in volume and value of turnover.  
 
2.54. In addition, under the Programme for enhancing inn ovation in SMEs, companies have 
support available in the form of co -financing the part of the costs for engaging external 
consultants for the implementation of innovative activities, more precisely for technical studies and 
solutions, the introduction of s pecial ICT solutions and softwares in the business, creation of new 
product design and similarly, which means that companies can obtain financial support amount to 
50% or up to €3,500 without VAT.  
 
2.55. The objective of the Cluster Development Program in Montenegro is to provide financial 
support for entrepreneurs, micro, small and medium sized enterprises within clusters, through WT/TPR/M/369/Add.1  
 
- 22 - 
 
  investments in tangible or intangible assets or operational costs, in order to strengthen the 
capacities of clusters and their positioning in the local and international market. ……"  
 
Question 21:  Please brief on the role of all kinds of subsidies and support measures in improving 
the enterprises' competitiveness.  
 
Answer: In accordance with the Industrial Policy of Montenegro to 2 020, Montenegro 
Development Directions 2018-2021, Regional Development Strategy until 2020 and other relevant 
strategic documents, the Government of Montenegro is continuously implementing various support 
programs, with the aim to ensure further enterprise s development and competitiveness of 
economy and create more diversified industrial production base.  
 
The Programme for supporting industry modernization  is being implemented continuously, 
since 2016. This form of support, which entails the adoption of new  technologies, primarily aims to 
ensure greater flexibility, productivity and profitability of Montenegrin enterprises, which boosts 
the competitiveness of enterprises and enables their integration into global value chains, while 
optimally using the availa ble resources. It is expected that investing in the technical equipment of 
enterprises will provide an increase in the quality, quantity and output of production and 
consequently to export growth and positive trends in the trading of goods.  
 
During the imp lementation of the Programme in 2016 and 2017, €71,136 of grants were awarded 
for purchase new machines and equipment in the amount of €531,366.  
 
Program for stimulating the development of clusters in Montenegro is being implemented 
in accordance to the implementation of national cluster development policy. The program has been 
continuously implemented since 2012. The goal of the program is to support the formation of new 
clusters, as well as strengthening the cap acity of existing clusters. In establishing a cluster, there 
is a chance for small producers and companies to overcome the limitations that they have in an 
independent business on the market.  
 
In the period 2012 -2017, 21 clusters are supported with total amount of €162,347. The effects of 
program realization are reflected in the following: enhanced cooperation between cluster 
members, improved cluster capacities, especially in the segment of marketing policy, increased 
visibility on the market, procurement  of equipment.  
 
Program for increasing regional and local competitiveness through harmonization of 
business with the requirements of international standards has been implemented in 
continuity since 2014. The goal of the program is to increase the competiti veness of entrepreneurs 
through an incentive to improve their business and gain a condition for the placement of products 
and services in the foreign market. In the period 2014 -2017 it was supported 83 companies in 
amount of €210,400 and they mainly introd uced the standards related to the Quality Management 
System (QMS), which points to the basic requirements in terms of identifying, systematizing and 
documenting the process in order to satisfy the user's requirements.  
 
Programme for enhancing innovation in SMEs has recognized the need for increasing linkages 
between businesses and the research sector for development, exchange and implementation of 
innovation within the industry. During the implementation of the Programme  in the period 
2016-2017, the total 4 companies have fulfilled conditions and procedure and have been granted 
with cca €13,000 of subsidy for realization innovative activities by introducing either innovation of 
products, process or innovation in organizat ion and marketing.  
 
The key effects of the previous realized innovative activities from the enterprises, will be more 
visible in coming period especially in increase of business profitability, productivity, expansion of 
product range, improved placements o f the products in foreign markets, increase in the number of 
employees.  
 
Considering the effects achieved so far, it is continued the implementation of all abovementioned 
programmes with the increase of the budget approved for the subsidies, the increase of the 
interested and supported companies/clusters that will in the medium term generate appropriate 
effects on competitiveness of enterprises and subsequently the entire economy.  
 WT/TPR/M/369/Add.1  
 
- 23 - 
 
  Page 31, para 2.61  
"Activities related to the draft of the Amendments to th e Law on Protection of Competition are in 
progress. Amendments to the Law on Protection of Competition have been initiated with the aim of 
forming a single body that would perform activities related to the protection of competition and 
state aid. Namely, i n the amendments, inter alia, it is envisaged that the powers and actions of the 
State Aid Control Commission come under the jurisdiction of the Agency for Protection of 
Competition. This will enable that operations of the state aid control are carried out  within the 
existing institutional arrangements, without expanding the network of regulatory bodies."  
 
Question 22:  Does the Law on Protection of Competition include any measures that over -limit the 
imported products?  
 
Answer: No, the Law on Protection of Competition does not include any measure for over limit the 
imported products.  
 
Part III. Other questions  
 
Question 23:  Does Montenegro have access restrictions on foreign investments in transport 
aviation, general aviation, airport, air traffic, aircraft maintenance, air -ground services, air fuel, 
computer reservation system and other civil aviation transportation services? What are the specific 
measures if there are access restrictions? Are there any plans and schedules for further opening 
up? 
 
Answer: Foreign investors have the opportunity to access all civil aviation services (general 
aviation, traffic, repair, fuel, etc.) except ground handling (according to the Rulebook on the 
provision of ground -handling services at the airport.)  
 
The Rulebook was pub lished in the "Official Gazette of Montenegro", No. 68/2015 from 12/8/2015. 
It came into force on December 16, 2015, and the provision of Article 15 paragraph 7 of this 
Rulebook shall apply from the date of accession of Montenegro to the European Union), w hich is in 
force, this possibility is given when Airports of Montenegro (Podgorica and Tivat) reach 
2 million  passengers, which has not yet happened.  
 
The Government of Montenegro is actively working to find the optimal solution for the valorization 
of Montenegrin airports (Podgorica and Tivat) together with the consultant and the mentioned 
activity should be completed by the end of the year, after which  an international tender will be 
announced.  
 
 WT/TPR/M/369/Add.1  
 
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  COSTA RICA  
Questions based on the Secretariat Report (WT/TPR/S/369)  
 
4. Trade Policies By Sector  
4.4 Services  
4.124.  
 
4.124. Adopted in 2016, the Strategy for the Information Society Development 2020 aims to 
encourage the growth of the ICT sector, through the realization of various strategic development 
priorities. These priorities include, inter alia : increasing broadban d access (fixed and mobile) 
availability to certain target levels by 2020 (Table 4.12); strengthening the capacities of the 
national Computer Incident Response Team (CIRT) to protect, prevent and combat against 
Internet incidents; helping to improve people 's basic and advanced digital skills; increasing the 
share of ICT in GDP such that the share of e -commerce in total commerce reaches 1.5%; and 
reaching targets in the areas of e -education, e -heath and e -government.121 With respect to 
meeting the aforementi oned broadband targets, there has been progress, but there remains some 
way to go (Table 4.12)  
 
- Can Montenegro please confirm whether the strategy includes actions regarding domestic 
regulations to facilitate and encourage trade in services?  
 
Answer:  
Developing and stimulating trade in services is recognized within the framework of strategic 
indicators for e -business, in order to increase the percentage of small and medium enterprises 
selling their services online.  
 
- Can Montenegro please confirm whet her the strategy to encourage growth in the ICT sector 
involves national treatment or market access limitations to foreign cross border services 
providers?  
 
Answer:  
The Strategy doesn't foresee any special treatment regarding market access limitations to f oreign 
cross border services providers.  
 
4.128. […] The Law contains new provisions on the regulation of retail service prices; these 
prescribe that the Agency may, without a prior market analysis procedure, determine the 
maximum roaming prices for an oper ator of public electronic communication services, in 
accordance with the agreement on the reduction of roaming prices in public mobile communication 
networks, concluded between Montenegro and other countries.  
 
- Can Montenegro please provide further inform ation on the provisions included in the 
agreements on the reduction of roaming prices in public mobile communication networks 
concluded with other countries? With which countries has Montenegro signed this kind of 
agreements?  
 
Answer:  
 
The Agreement on red ucing prices of roaming services on public mobile communications networks 
is signed among the Ministries responsible for the area of electronic communications from: Bosnia 
And Herzegovina, Republic Of Macedonia, Montenegro and Republic Of Serbia.  
 
The Agr eement established the glide path of lowering roaming costs in region in accordance with 
EU Regulation (EU) No 531/2012 of the European Parliament and of the Council of 13 June 2012 
on roaming on public mobile communications networks.  
 
4.139. The same rights and obligations apply to domestic and foreign legal and natural persons 
with respect to advertising, teleshopping and sponsorship, as stipulated in the 2011 Rulebook on 
Audio -visual Commercial Communications (OG No. 36/11).146 Monten egro does not impose any 
restrictions on foreign legal entities obtaining broadcasting licences, except for where the entities 
are registered in countries where it is not possible to determine the origin of the start -up capital.  
 WT/TPR/M/369/Add.1  
 
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  - Can Montenegro please pr ovide further details on the process applied to determine the 
origin of the start -up capital of a foreign entity that wishes to obtain a broadcasting license?  
 
Answer:  
 
(1) Pursuant to the Para 3 of Article 135 of the Electronic Media Law, "a domestic legal pe rson 
having as its founders also foreign legal persons incorporated in countries in which it is not 
possible to establish the origin of start -up capital shall not be eligible as a licence holder".  
 
(2) In line with Articles 10 and 19 of the Rulebook on the Con ditions and Procedure for 
Awarding Broadcasting Licences, the form of tender application for licence as well as the 
form of the request for licence, includes a statement confirming that the data provided by 
the applicant are true and correct, as well as th at "its founders do not include foreign legal 
entities registered in the countries where it is not possible to determine the origin of the 
start-up capital".  
 
Furthermore, Article 135 of the Electronic Media Law prescribes that "a broadcaster is obliged to 
notify AEM in writing of any changes in its ownership structure ". Also, it is prescribed that "a 
broadcaster shall procure a prior written approval of the Agency Council for any change in the 
ownership structure exceeding a 10% s take".  
 
Having that in mind, Article 31 of the Rulebook on the Conditions and Procedure for Awarding 
Broadcasting Licences prescribes that the " Agency Council may withhold the prior consent to 
change in the ownership structure greater than a 10% stake, if such a change implies that the 
broadcaster's founders would include foreign legal persons registered in the countries where it is 
not possible to determine the origin of start -up capital" .  
 
- Can Montenegro please confirm that the foreign legal entity req uires local presence and/or 
establishment to provide such services?  
 
Answer:  
Yes, foreign legal entity requires local presence and/or establishment to provide broadcast 
services.  
 
4.140. With respect to film production, the 2015 Law on Cinematography sets out the State's 
framework for the promotion and development of cinematography through the Film Centre of 
Montenegro. This Centre is a public institution which officially started operations in April 2017; it 
aims to create a stimulating environment for the Montenegrin film community and its promotion 
both regionally and globally. Its main activities are the management of the film fund (see below); 
support for new film productions; the promotion of Montenegrin cinema and its potential for 
international produc tions; training programmes for film professionals directed towards raising the 
level of their professional skills; and a series of activities around film festivals and film literacy. The 
Centre is funded from two sources: the state budget, and levies on co mpanies which exploit 
cinematographic works.148 It offers incentives for both foreign and domestic producers intending 
to film in Montenegro. After the wrap -up of a feature film, documentary, animation, television film 
or television series, the producer ha s the possibility to get a cash rebate of the investment funds 
for the film/television project. The refund can cover up to 20% of eligible expenditures spent in 
Montenegro for the making of the film, and the rebate is granted after meeting certain conditio ns. 
The procedure for reimbursement is initiated by a request for a refund, which the producer 
submits to the Centre no later than 30 days before the start of the recording of the 
cinematographic work in Montenegro. Funds are reimbursed by the Film Centre of Montenegro in 
accordance with provisions in the Law on Cinematography and the Decree on Incentives for 
Cinematographic Production in Montenegro. Funds for reimbursement are provided for in the 
budget of the state administration body responsible for fina nce. 
 
- Can Montenegro please provide further information on whether the incentives for foreign 
and domestic producers intending to film in Montenegro are the same or equivalent?  
 
Answer:  
 
Film Centre of Montenegro offers incentives for foreign producers t hat intend to film in 
Montenegro. Productions has the possibility to get a cash rebate of the invested funds for the WT/TPR/M/369/Add.1  
 
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  film/television project. The refund can cover up to 20% of eligible expenditures spent in 
Montenegro for the making of the film and is gran ted after meeting certain conditions. The right to 
a cash rebate may be granted to the producer of a cinematographic work, a co -producer or 
production company that performs a service provided that:  
 
1. - the funds spent for the realization of a cinematographic work in Montenegro are not 
provided from the budget of Montenegro or the Film Centre and are not less than EUR 
100,000;  
 
2. - all taxes, contributions and other fiscal obligations prescribed by law have been 
previously settled in Montenegro;  
 
3. - there are no bankruptcy or liquidation proceedings against the producer; and  
 
4. - a producer or co -producer has at least one feature film that was shown to the public.  
 
Formats eligible: feature films, documentaries, TV films and series while qualifying test means 
minimum 15 points: cultural content, use of film crew and talents, use of production capacities. 
Incentives for foreign and domestic producers are the same.    
 WT/TPR/M/369/Add.1  
 
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  EUROPEAN UNION  
WT/TPR/S/369  
 
Page 42, para. 2.40. on FDI  
 
EU Question  N1: the EU would like to know whether the six companies mentioned as benefiting 
from direct investment incentives as set under 2015 Decree on Direct Investment Incentives were 
only loc al, or also foreign ones.  
 
Answer:  
 
The Decree on Direct Investment Incentives ("Official Gazette of Montenegro", No. 08/15, and No. 
80/15) is being applied continuously since 2015. The Secretariat for Development Projects 
published three public notices fo r participation in the procedure of award of financial incentives for 
encouraging investments, as follows: 1 July 2015, 11 March 2016 and 3 March 2017.  Total of 35 
applications were submitted to the mentioned Public notices, including applications of fore ign 
companies.  
 
According to the Decree on Direct Investment Incentives, Investors who realize investment 
projects in Montenegro can receive financial incentive awarded by the Government of Montenegro. 
Both Montenegrin and foreign legal entities can apply for investment incentives but only legal 
entities with registered office in Montenegro can be recipients of investment incentives.  
 
All six companies that have concluded Direct Investment Incentive Agreement are domestic 
companies, but one of them, Securit as Montenegro is majority owned by Securitas AB from 
Sweden.  
 
Page 44, Section 2.4.2 on business environment.  
 
EU Question N°2: With regards to improvement of business environment, what is the timeline for 
ensuring full electronic registration of businesses?  
 
Answer:  
 
The new Company Law which has gone through the public consultations process is to be adopted 
by the Government by the end of the September 2018. This Law envisages full electronic business 
registration.  In order to enable full electronic business registration, after the entry into force of 
the Law, Ministry of Finance and Tax Administration, as responsible institutio n for business 
registration, will prepare necessary bylaw. Therefore, we expect to have full electronic business 
registration operational by September 2019.  
 
Page 50 para 3.12 Trade Facilitation ." Under the NTFCs supervision, the first National Trade 
Facilitation Strategy – intended to address systemic bottlenecks in cross -border trade and define a 
five-year framework for the implementation of concrete trade facilitation reforms – is under 
preparation and is expected to be adopted by the end of first quarte r of 2018. The Strategy is to 
also support Montenegro's economic development goals and meet its WTO TFA commitments as 
well as undertakings in the context of the process of accession to the European Union and other 
relevant international and regional agree ments in this area."  
 
EU Question N°3:  Could Montenegro give information on the state of play of the TF strategy and 
its main elements as well as on the timeline for the adoption of measures to facilitate and simplify 
trade?  
 
Answer:  
 
The Government adopt ed the Trade Facilitation Strategy on the session held on 29 March 2018. 
The Strategy represents a joint five -year reform plan for all competent authorities in the area of 
trade facilitation. The Strategy is also an answer to a number of obligations arisin g from the EU 
accession, WTO Trade Facilitation Agreement and regional CEFTA Additional Protocol 5.  
 WT/TPR/M/369/Add.1  
 
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  The Strategy envisages that by the end of December 2022, Montenegro will eliminate cross -border 
administrative inefficiencies affecting its competitiveness , thus reducing the time for import, export 
and transit of goods by 50%, and the accompanying costs by 20%.  
 
To achieve this strategic goal, the Strategy defines five "operational goals" and, with respect to 
each, sets out a "set of measures" to be impleme nted by the competent authorities. These goals 
are focused on improving transparency and access to information; harmonization and 
rationalization of formalities, documentation and fees; implementation of simplified and expedited 
procedures for clearance of  goods; improving cooperation and increasing the effectiveness of 
border controls; and extension of automatic processing and electronic data exchange.  
 
•  Could Montenegro indicate its intentions regarding potential notification to the WTO of 
information in line with Article 1.1, Article 10.6.2 and 12?  
 
Answer:  
 
The activities of the National Trade Facilitation Committee and competent authorities during the 
last year were mainly focused on on -going projects as well as on developing a comprehensive joint 
reform plan - the TF Strategy. Since the Strategy is set and adopted the next activities will focus 
on TFA notification requirements.   
 
•  Could Montenegro indicate how implementation of Article 1.1 a) to j) as well as Article 1.4 
a) and b) and Article 6.1.2 p rovisions cannot be considered as belonging to category A 
commitments?  
 
Answer:  
 
The entire Article 1.1 – "Publication" was notified as category A commitment. As stated above the 
next activities will focus on specific TFA notification requirements, including those arising from 
Article 1.4 a) and b) and Article  6.1.2. In addition, the notification of category commitments with 
the definitive dates for category B and C implementation will be adjusted to the improved situation 
and notified to the WTO Committee on Trade Facilitation.  
 
Page 58, para 3.14. on fees . The EU notes that Customs inland terminals are located in 
privately owned facilities which charge a fee to every lorry required to enter the terminal to 
discharge customs obligations.  
 
EU Question N°4:  Does Montenegro intend to review this practice?  
 
Answer:  
 
Regarding this practise, Montenegro is planning to consult EU member states practise in this area, 
and accordingly to make recommendations and propose possible solutions - especially regarding 
the potential investments needed. Once the reassessment is done , the conditions will be created 
for the review of this practise.   
 
Page 64, Export credit, para 3.53  states that "No measures seem to be in place in this area. 
Regarding the regulatory framework on export credits, the Ministry of Finance in cooperation w ith 
the Investment and Development Fund of Montenegro (IDF) prepared a draft Law on Amendments 
to the IDF Act, which defines IDF responsibilities related to export credits. Both institutions are to 
adopt a regulation on the modalities for issuing export cr edits, no later than one year after the day 
of entry into force of the new Law, which would be harmonized with the relevant EU regulations. 
Public debate on the draft legislation concluded in August 2017 and, by end -November of the same 
year, it was under parliamentary procedure. At the same time, the setting of export guarantees 
was under consideration."  
 
EU Question N °5: Could Montenegro explain the main elements of this Law which has now been 
adopted and if there are any further legislative intentions?  
 WT/TPR/M/369/Add.1  
 
- 29 - 
 
  Answer:  
 
At its session on November 23, 2017, the Parliament of Montenegro adopted the Law on 
Amendments to the Law on Investment and Development Fund of Montenegro, which entered into 
force on December 9, 2017. By this Law, IDF MNE JSC has been authorized  to perform insurance 
activities for exports of goods and services from Montenegro from non -market risks.  
 
The Law on Amendments to the Law on Investment and Development Fund of Montenegro 
stipulates that the Government of Montenegro, within 12 months from  the date of entry into force 
of this Law, shall issue bylaws, which will regulate the conditions and manner of carrying out 
export insurance business, which act will be harmonized with the relevant European Union 
regulations.  
 
Page 84, para 3.93 on SPS is sues. Para 3.96 reports that " Importers (and exporters) of 
consignments must be registered and imports must be accompanied by a phytosanitary certificate 
issued by a competent authority in the exporting country.151 The implementation of a Plant 
Passport S ystem began in 2015; as of 1 September 2017, 616 subjects were registered. Imports 
(and exports) of plants and plants products are subject to documentary, identity and plant health 
checks by 13 phytosanitary inspectors at Montenegro's 13 official entry poi nts." According to the 
information available, the Permit to Import Plants and Plant Products has to be required for every 
import. This practice generates an additional cost and (in addition to other importing costs) 
consequently increases the final price o f the imported products.   
 
EU Question N°6.  Are there any plans to simplify the import phytosanitary requirements?   
 
Answer:  
 
Montenegro does not require permit for import of plants and plant products. Montenegro abolished 
these requirements after adopti on of phytosanitary import regulations of Montenegro based on the 
Law on Plant Health Protection (OG MN 28/06, 28/11) and the Rulebook on phytosanitary 
measures against introduction, prevention from spreading and suppression of organisms harmful 
to plants,  plant products and objects under supervision, with lists of harmful organisms, plants, 
plant products and objects under supervision (OG MN 39/11) which entered into force on 4 
February 2012. These regulations are harmonized with the EU Commission Directiv e 2000/29/EC 
with annexes.  
http://www.ubh.gov.me/vijesti/111319/National -Plant-Protection -Organization.html  
 
Page 86, paragraph 3.99  states that "Animal and animal products are subject to inspection and 
quarantine wherever applicable.158 Veterinary inspectors supervise the safety of products of 
animal origin in production, international trade, wholesale and retail trade. They are also in charge 
of checking wild and aquaculture fish and their products including snails. Veterinary health checks 
are performed at the place of dispatch. Importation of consignments of live animals and animal 
products must be accompanied by international certi ficates of animal and public health. If an 
animal or an animal product does not comply with the domestic requirements, an official 
veterinarian can order its quarantine or temporary storage.161 Under the Veterinary Law and the 
Food Safety Act, Montenegro c an introduce protective measures restricting or banning imports, 
exports or transit of animals, products of animal origin, food for animals and animal by -products in 
cases of risk of introduction of infectious diseases (Article 55 of the Veterinary Law)." As happens 
on the import of plants, the Import Approval for Animal Products impacts the cost of the imported 
product for the final consumers.  
 
EU question N°7:  Are there any plans to revise this requirement or decrease the processing fee?  
 
Answer:  
 
Monten egro, in line with the Programme of Accession to the EU, planned transposition of 
legislation in the period between 2014 until the end of 2018, while finalization of the measures 
necessary for its implementation is planned for the period from 2019 until th e end of 2020. 
According to this document, the year 2020 will be appropriate date for implementation of EU 
import requirements for animal products. Montenegro will undertake all the measures necessary in 
order to comply with the EU regulations. This means that preparatory work is on -going: veterinary WT/TPR/M/369/Add.1  
 
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  inspectors attended the trainings, full informatization and networking is planned from 2018, in 
order to achieve more efficient implementation of controls.  
 
Pages 89 -93 on subsidies.  
 
EU Question N °8: Could Mo ntenegro provide an overview of how its State aid (in EU 
terms)/subsidies control system works, and an overview of cases and decisions of the national 
body responsible for Subsidies/State aid control?   
 
Answer:  
 
As the EU law leaves to Member States (or, in this case, acceding country) a large degree of 
flexibility for the design of their enforcement regimes, and only requires that the states designate 
the authority responsible for the application of the EU compet ition rules (i.e. State aid rules) to 
effectively comply with the rules, Montenegro has established State aid Control Commission 
(SACC), authority that is responsible for the compliance of the notified and granted state aid 
(including subsidies as one of t he state aid measures that are defined in Law on State Aid Control) 
with Law on State Aid Control (hereinafter referred to as:  Law).  
 
SACC in short:  
SACC is an administrative model, where there are two parts of single authority, two functionally 
separate  parts:  
• First one, as a part of Ministry of Finance, State Aid Control Unit (SACU) is the one that is 
more investigative and every -day working part; the one that, according to the State aid Law 
and Rules on procedures of SACC, is in charge of preparing e xperts ground for decision 
making  of SACC. The experts ground is based on full/complete notification and all 
information gathered from the grantors. In practice, it happened that SACU decision was 
overruled by SACC, which is additional element in favour o f SACC's independent decision -
making process.  
• The second part, decision -making one, is SACC per se, an authority that meets on ad hoc 
basis in order to decide whether submitted materials and prepared experts ground is in 
accordance with the State aid Law  and rules in place.  
 
The SACC, by the Law, is designed as an independent authority and formally established as 
administrative authority, with its own resources as a separate unit in State budget since its 
establishment, it has a legal personality, as wel l as its VAT identification number and stamp.  
There are clear procedures regarding the appointment and terminating terms of office of the SACC 
members, established by the Law and only possible according to the provisions of the Law.  
 
Also, SACC is not ob liged to report neither to the Government nor to the Parliament of 
Montenegro, but only submits its annual reports to the Government and the Parliament for the 
sake of the information on granted state aid for the reporting period.  
 
It is very important to  stress out that SACC is not a subject of any supervision by any state body, 
except, as a part of national system; its decisions may be challenged before the Court. However, it 
is important to have in mind that, as all state authorities, SACC may be the su bject of audit of 
State Audit authority, in accordance with the annual plan of State Audit Institution, if its Senate 
decides so.  
 
SACC members are elected by the Government of Montenegro and for its works as member of 
SACU, according to the Law on State a id Control Commission, and are not obliged to inform any 
member of the Government. They are only bind with the rules and procedures prescribed by the 
legal acts in this matter and Law on Prevention of Conflict of interests.  
 
Hence, it is important to emph asize that new Law on State aid Control came into force in the 
beginning of March in 2018. As SACU became the part of The Agency for Protection of Competition 
– APC by the Law (it is not anymore the part of Ministry of Finance), all SACC's competences are 
taken over by the APC. According to the Law and new Law for Protection of Competition ex ante 
and ex post state aid control will be conducted by new authority (body), in this case Council of the 
Agency. All information on ex ante, ex post and other mechani sms of state aid control are defined 
by the Law.  
 WT/TPR/M/369/Add.1  
 
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  The overview of cases and decisions made by SACC you can find on the portal of SACC: 
www.kkdp.gov.me .  
 
Pages 91 -93 on competition legislation. The paras 3.117, 3.118  and 3.120 on fines 
indicate that fines may only be imposed by the Court for Misdemeanours, upon request of the 
Agency for Protection of Competition. The limitation period for initiating such misdemeanour 
proceedings is two years from the day on which the misdemeanour was committed.  
 
This leads to the following  EU Questions:  
 
N°9: Could Montenegro please explain if and how a cartel or abusive practice, which has been 
initiated more than two years ago, may be sanctioned under the competition law?   
 
Answer:  
 
When cartel or abusive practice has been initiated more than two years ago, under the current 
legislation no sanctions may be imposed against the undertakings that infringed competition law. 
If the proceedings have not been initiated within two years fro m the time when the misdemeanor 
was committed, there will not be misdemeanor sanctions (fine will not be imposed), while the 
absolute limitation is foreseen within four years, i.e., the proceedings before the court must be 
completed by then. In the specifi c case, the Court will suspend such proceedings due to the 
statute of limitations. The conditions for statute of limitation for conducting misdemeanor 
proceedings are determined according to the time when the infringement was committed.  
 
N°10: What about a  continuous violation that started more than two years ago – could it be 
sanctioned under the competition law?   
 
Answer:  
 
A continuous violation that started more than two years ago in particular cannot be sanctioned, 
because it is related to the first day  of the execution of the violation - it is a misdemeanour of the 
state, regardless of the fact that the unlawful state lasts longer.  
 
N°11: Para 3.118 last sentence mentions a possible change in the limitation period. Could 
Montenegro please explain whethe r such change took place and indicate the relevant legal basis?  
 
Answer:  
 
There were no changes in this respect, i.e. the statute of limitation was not expanded from 
existing two to three years . 
 
Page 97. Section 3.3.5 on government procurement. Montenegro's public procurement law 
allows for procurements done under international agreements to be exempted.   
 
EU Question N°12: Could Montenegro provide more detailed information on how this provision is 
used in practice and how does Montenegro ensure that this does not unduly restrict competition?  
 
Answer:  
 
International agreements are the most important method of establishing mutual rights and 
obligations of states and other subjects of international law in their particular (special) 
relationship.  Relations between sovereign and equal entities are essentially based on the balance 
and the reciprocity.  
 
Ratification is an international unilateral act by which a state gives its consent on the international 
level to be bound by an international treaty. I t is a unilateral recognition of a contracting party to 
the other party, by which the signed international treaty is accepted as obligatory, and which 
means an earlier act of the highest competent authority of the country (usually Parliament) 
adopted on a national basis and in accordance with its constitutional provisions, and authorizing 
the ratification as an international act (i.e. internal ratification, validation).  
 WT/TPR/M/369/Add.1  
 
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  The Public Procurement Administration indicates that, apart from the general obligation  of 
contracting authorities to apply the public procurement procedures stipulated by the Law, the 
legislator also envisaged some exemptions which were stated in Article 3 of the Public 
Procurement Law of Montenegro (Official Gazette of Montenegro  042/11 o f 15 August 2011, 
057/14 of 26 December 2014, 028/15 of 03 June 2015, 042/17 of 30 June 2017) and these are as 
follows:  
 
Provisions of this Law shall not apply to:  
 
1) procurement procedures conducted in accordance with special international organization's 
procedure, on basis of an international agreement or treaty concluded with that 
international organization;  
2) procurement procedures conducted in accordance with special rules on basis of an 
international agreement or treaty concluded between Montenegro and on e or more 
countries for a project that shall be conducted or used jointly by contractual parties;  
3) procurement aimed at protection and recovery from catastrophes and major disasters – 
state of emergency;  
4) confidential procurement, in accordance with the Law ; 
5) procurement aimed at the acquisition, development, production or co -production of 
program material, intended for radio or television broadcasting;  
6) procurement of arbitration, amicable dispute resolution and notary services;  
7) procurement of financial servi ces in connection with the issue, sale, purchase or transfer of 
securities or other financial instruments, in particular transactions by the contracting 
authorities to raise funds, capital and services of the Central Bank of Montenegro;  
8) procurement relati ng to the labor relations;  
9) procurement of services related to employment;  
10) services of advertising notifications on public procurement procedures in the media;  
10a) procurement of election material;  
10b) procurement of goods and services related to the operation of aircrafts of the 
Government;  
13) special public procurement prescribed by this Law.  
 
This Law shall not apply to the process of granting concessions, and rendering services or hiring 
experts (financial, legal and/or technical) in the process of pr ivatisation of the economy, sale and 
renting of land, buildings and other movable or immovable assets or rights.  
 
Public procurement contracts which are subject to different rules are implemented on basis of an 
agreement concluded between one or more coun tries for a project which the contracting parties 
will jointly implement or use, whereupon the agreement clearly specifies the public procurement 
procedure, that is, the procedure that will be used in implementation of the said agreement.  
 
Thus, the basic requirement for the application of the exemption is that the international 
agreement/contract, or credit or donor agreement /contract clearly and unequivocally defines the 
public procurement procedures with the elements incorporated into the legal form of the 
international agreement, in particular:  
- a clearly defined common project,  
- a clear public procurement procedure and  
- ratification by the highest competent authority of the country.   
 
Page 104. Industrial property. Para 3.150 " Parallel imports are not forbidden; as long as the 
goods are original, they can enter the free market but sometimes are marketed in a way that the 
trademark owner might not consider favourable.6 No data or other information on values of 
parallel imports is available from the autho rities as the Customs Administration does not keep such 
records." The EU encourages Montenegro to apply the national exhaustion regime to avoid parallel 
imports.  
 
EU Question N°13:  Could Montenegro clarify which exhaustion regime it applies? National or 
international exhaustion?  
 
                                                
6 Petosevic  online article, "Montenegro IP Report: A Decade After", 20 October 2016. Viewed at: 
https://www.petosevic.com/resources/articles/2017/02/3521 . WT/TPR/M/369/Add.1  
 
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  Answer:  
 
Regulation on the customs treatment of goods for which there is reasonable suspicion of infringing 
intellectual property rights (Official Gazette of MNE no. 48/2016) prescribes conduct of customs 
authority with goods for which there is a reasonable suspicion that its import, export or transit 
infringes intellectual property rights. Excepti on from  the application of the Regulation on the 
customs treatment of goods for which there is reasonable suspicion of infringing intel lectual 
property rights (Official Gazette of MNE no. 48/2016) relates to the original goods and parallel 
import which implies the trade  with original goods. Specifically, Article 2 of the Regulation 
stipulates that the Regulation shall not be applicable o n the goods manufactured under the 
consent of the rights holder and for the goods, for which the rights holder authorized a person to 
manufacture a specific quantity of goods, which was manufactured in larger quantities from agreed 
by that person and the r ights holder (parallel import).  Customs authority can only apply 
prescribed measures on goods for which exists the reasonable suspicion of being counterfeited.  
 
In general, Montenegrin IP legislation prescribes national exhaustion of rights and Community 
exhaustion of rights from the date of accession of Montenegro to European Union.  
 
Section 3.3.6.1.1 on patents  
 
EU Question N°14: Could Montenegro explain the specificities of its supplementary protection 
certificate regime for pharmaceuticals, plant prote ction products and paediatric medicines, because 
it is not mentioned in the report.   
 
Answer:  
 
In accordance with the Patent Law, if a basic patent has been granted for a product which is a 
component part of a medicinal product intended for humans or animals, or for a plant protection 
product, for which the placing on the market requires prior autho risation in accordance with special 
law, the competent authority may grant the Supplementary Protection Certificate (Certificate), 
under the conditions provided by the Patent Law.  
 
Within the limits of the protection conferred by the basic patent, the pro tection conferred by the 
Certificate shall extend only to the product covered by the authorization for placing on market 
medicine for human or animal use or plant protection product, and for any use of the product as a 
medicine for human or animal use or p lant protection product, for which license has been issued 
before the expiry of the Certificate.  The Certificate shall confer to the holder the rights identical to 
those conferred by the basic patent and these rights shall be subject to the same limitatio ns and 
obligations.  
 
A Certificate shall be granted to the holder of the basic patent covering the product or to his 
successor in right. Upon the application of the patent holder, a Certificate shall be granted if the 
following conditions are fulfilled on the filing date of its application:  
1) that the product is protected by a basic patent in force;  
2) that an authorisation to place the product on the market has been granted in accordance 
with special regulations,  
3) that the mentioned authorisation is the first license for placing the product on the market, 
and  
4) that the product as:  
- a medicinal product for human or animal use has not already been the subject of the 
Certificate;  
 - plant protection product has not already been the subject of the C ertificate.  
 
The Certificate shall take effect immediately at the end of the lawful term of the basic patent and 
lasts for a period equal to the period which elapsed between the date on which the application for 
a basic patent was filed and the date of the  first authorization to place the product on the market, 
reduced by a period of five years. The duration of the Certificate may not extend beyond five years 
of the date on which it takes effect. The duration of the Certificate shall be extended only once b y 
six months if an authorized medicinal product which is protected by a Certificate or a patent that 
qualifies for the granting of a Certificate has completed all the studies required in compliance with 
an agreed paediatric investigation plan, provided tha t the authorization was issued in all member 
states of the European Union.   WT/TPR/M/369/Add.1  
 
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Page 107. Section 3.3.6.1.3 on GIs.  The Secretariat report refers to 'Protected Designation of 
Origin' (PDO) or 'Protected Geographical Indication' but also to ' controlled appel lation of origin' 
(page 107).  
 
EU Question N°15:  Could Montenegro provide some information on what are criteria for the use 
of a 'controlled appellation of origin' and if they are different than the once for a PDO and PGI?  
 
Answer:  
 
In Montenegro, Geograp hical indications are regulated by four laws7. MARD is responsible for 
geographical indications for food and foodstuff products, wine and alcohol beverages. Intellectual 
Property Office of Montenegro (IPOM) is responsible for geographical indications for o ther products 
and services.  
 
In accordance with the regulation under the responsibility of MARD8, a producer of agricultural 
products may use PDO and PGI, provided that the product complies with the conditions of the 
relevant specification. Following the r egistration of the designation or indication and following the 
procedure of verification of compliance of the product with the specification, a producer of the 
agricultural product shall submit an application for entry in the Records on users of registered  
designations of origin or Records on users of registered geographical indications, as appropriate. 
The entry in the Records shall be done by a decision of the Ministry (MARD). The producer of 
agricultural products shall be deleted from the Records where i t no longer complies with the 
conditions from the product specification.  
 
In accordance with the Law on Indications of Geographical Origin ("Official Gazette of Montenegro" 
48/08), which is under the responsibility of IPOM, Indications of geographical origin shall be 
appellation of origin and geographical indication. An appellat ion of origin shall be the geographical 
name of a country, region or a locality, used to designate a product originating therein, the quality 
and characteristics of which are due exclusively or essentially to the geographical environment, 
including natural  and human factors, and which is produced, processed or prepared within a 
specific limited geographical area. Geographical indication shall be the indication that identifies 
certain goods as goods originating from the territory of specific country, region or a locality within 
such territory, where specific quality, reputation or other characteristics of the goods can be 
essentially attributed to their geographical origin. The procedure for granting the status of an 
authorized user of the appellation of orig in or geographical indication shall be initiated with the 
application for recognition of the status of an authorized user of the appellation of origin or 
geographical indication. The application for recognition of the status of an authorized user of the 
appellation of origin or geographical indication may be submitted by natural persons or legal 
entities producing in the particular geographical area the products designated by the name of that 
geographical area as well as the associations of those natural pe rsons or legal entities. For filing an 
application for recognition of the status of authorized user of the appellation of origin or 
geographical indication, the prescribed fee shall be paid. The essential parts of the application for 
recognition of the sta tus of an authorized user of the appellation of origin or geographical 
indication are:  
 
•  request for recognition of the status of an authorized user of the appellation of origin or 
geographical indication;  
•  proof of the performance of a particular activity  in a particular geographical area.  
 
An important part of the application for granting the status of an authorized user of the appellation 
of origin is also a proof of the performed quality control of products conducted by an authorized 
organization listed  in the application of the appellation of origin.  
 
EU Question N°16:  Could Montenegro provide some information on how the official controls of 
geographical indications are organised?  
 
                                                
7 It mainly consists of the Law on Indications of Geographical Origin (OG  No. 48/08 and 40/11), the Act 
on Spirit Drinks (OG No. 83/09), The Law on Quality Schemes (OG No. 22/2017)  and the Act on Wine (OG No. 
41/16) . 
8 The Law on Spirit Drinks (OG No. 53/16), The Law on Quality Schemes (OG No. 22/2017)  and  the Act 
on Wine (OG No. 41/16).  WT/TPR/M/369/Add.1  
 
- 35 - 
 
  Answer:  
 
Verification of compliance of agricultural or food products wit h the specification shall be done 
following the adoption of the decision on registration of designations of origin and geographical 
indications. The verification of compliance with the specification shall be done by a control body 
authorised by the Ministr y (MARD) . The authorization shall be issued to a control body that:  
 - is based in Montenegro;  
 - is accredited in accordance with the standard MEST EN ISO/IEC 17065;  
 - meets the conditions as regards technical equipment and qualified staff.  
 
The list of authorised control bodies shall be published in the Official Gazette of Montenegro. 
Currently Montenegro has only one Authorised Control Body – "Monteorganika".  
 
The procedure of verification of compliance of agricultural products with the specificatio n shall start 
with submission of the application to the control body. Where the procedure of verification of 
compliance verifies that the agricultural products comply with the specification, the control body 
shall issue a document on compliance of the agri cultural products, which is presented to the 
applicant and the Ministry (MARD) . Where the control body establishes major non -compliance with 
the specification of agricultural, it shall notify the Ministry (MARD)  thereof, also shall include the 
extent of no n-compliance and measures that need to be undertaken in order to eliminate the non -
compliance.  
 
The control body shall present the Ministry (MARD) annually with a report on assessments of 
compliance of agricultural or food products with the specification n o later than by January 31 of 
the current year for the previous year. The assessment of compliance of agricultural and/or food 
products with the specification shall be done on the basis of the control plan of the control body.  
 
In accordance with the Law o n Indications of Geographical Origin ("Official Gazette of Montenegro" 
48/08), which is under the responsibility of IPOM, any document (attestation, certificate, credential 
or report) confirming that the quality control of the product has been performed, i ssued by the 
authorized organization named as the organization responsible to perform quality control in the 
request for the registration of the appellation of origin and the request for the recognition of the 
status of an authorized user of the appellatio n of origin, which verifies that the product subject to 
control has all the specific characteristics listed in the report on the manner of production of the 
product and specific characteristics and quality, shall be deemed to be the proof that the quality 
control of the product has been performed. This document shall be valid for six months.  
 
Inspection control over the use of the GO and the OP is carried out by the Ministry (MARD) , 
through the agricultural inspector and food inspector, and the market inspe ctor. 
 
The Law on the Application of Regulations which  regulate the Protection of Intellectual Property 
Rights ("Official Gazette of the Republic of Montenegro ", No. 45/05) stipulates, inter alia, that the 
market inspector performs inspection control ove r the production and trade of goods that violate 
industrial property rights, including geographical indication of origin.  
 
The procedure of inspection controls in the area of the geographical indication of the origin for the 
industrial products and domestic work, which is conducted by Market inspection shall be initiated:  
 - Ex officio and  
 - at the initiative -request of the right holder.  
 
The request for the initiation of proceedure shall be submitted to the Market inspection in writing 
and may be i ndividual, if it relates to a particular type and quantity of goods, and generall, when it 
relates to all quantities of certain goods for a certain period of time. In the case of a general 
request, the request shall include the time period for which the pr otection is requested.  
 
The content of the request contains: a description of the goods with the data on  the basis of 
which  the goods that infringe rights can be identified and  the proof that the applicant is the right 
holder on the goods to which the r equest relates.  
 
The issues of inspection supervision that are not regulated by this Law are subject to the 
provisions of the law regulating inspection supervision (Law on Inspection Supervision "Official WT/TPR/M/369/Add.1  
 
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  Gazette of the Republic of Montenegro" No. 39/03 a nd "Official Gazette of Montenegro" No. 76 / 
09, 57 / 11,18 / 14 and 11/15).  
 
Page 112. Para 3.183 on domestic enforcement  
 
EU Question N°17: Could Montenegro elaborate on the actions that the customs authorities can 
take against goods in transit suspected  to be infringing an IP right?   
 
Answer:  
 
Regulation on the customs treatment of goods for which there is reasonable suspicion of infringing 
intellectual property rights (Official Gazette of MNE no. 48/2016) prescribes the procedure of 
customs authority wi th the goods for which exists the reasonable suspicion that by its import, 
export and transit and infringed intellectual property rights.  
 
Customs authority even in the transit procedures, in case of reasonable suspicion that the goods 
are infringing inte llectual property rights, can suspend the requested customs procedures and 
temporarily detain the goods, of which is informed the rights holder who has registered rights for 
the territory of Montenegro. Further procedure of the customs authority is prescri bed by the 
Regulation and depends from the rights holder alone, since the rights holder is entitled to notify 
customs administration within prescribed deadline, that it has initiated procedure with the 
competent court in order to establish infringements of  intellectual property rights or to submit 
application for the simplified procedure of destruction of goods, pursuant to the provisions of the 
Article 19 of the Regulation.  
 
Page 141. Paragraphs 4.112 and 4.113 on insurance  Para "4.112.   "Insurance and 
reinsurance providers must be established either as a joint -stock company with a head office in 
Montenegro or as a branch of a foreign insurance company. Minimum capital requirements are 
either €2 million or €3 million for companies engage d in non -life insurance activities ; and 
€3 million for companies engaged in life insurance activities and companies engaged in reinsurance 
business.  Para 4.113.  Foreign insurance companies may pursue insurance activities via a branch; 
half of the aforem entioned minimum share capital must be deposited with a bank with a registered 
office in Montenegro, and half of the guaranteed capital must be available at its disposal in the 
territory of Montenegro (one quarter of the guaranteed capital must be deposite d in a bank).  
Applications by foreign insurance companies from non -WTO member states may be accepted or 
rejected on the basis of reciprocal access for Montenegrin insurance companies.  A foreign -owned 
insurance company may also be established as a joint s tock company within Montenegro; this has 
been the option chosen by a number of large insurance groups.  There are no citizenship 
requirements attached to employment within insurance companies. However, the Executive 
Director and Board Members must have the  level of competence in the Montenegrin language 
needed in order to carry out their activities".  
 
EU Question N°18:  The EU welcomes that foreign insurance companies may pursue insurance 
activities via a branch. However, foreign banks do not seem to benefit  from branching. Could 
Montenegro explain its reasoning for this difference?  
 
Answer:  
 
The system promotes full equality among domestic and foreign investors in terms of bank 
establishment as well as operations of a bank established by that foreign legal/n atural entity. 
There are no restrictive measures applied to foreign natural/legal entities, the same regulations 
are applied equally.  
 
According to the Banking Law, branch is a part of a bank which does not have the status of a legal 
person and performs all or just some of the activities of that bank. A bank that is registered and 
licensed in Montenegro may establish (with a prior approval of the Central Bank) branches, 
representative offices and other organizational parts in Montenegro and in foreign cou ntries, which 
do not have the status of a legal person, and dependent legal persons, under the provisions of this 
Law. A foreign bank may operate in Montenegro through its branch with prior issuance of the 
approval of the Central Bank for branch operations . This approval must specify operations which a 
branch of the foreign bank may perform in Montenegro.  
 WT/TPR/M/369/Add.1  
 
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  Also, the Law prescribes conditions for denial of requests for approval for branch operation, among 
which the ground for denial of the request/approval f or branch operation is lower long -term credit 
rating of a foreign bank (lower than A), or if deposit protection system in a country where head 
office of a foreign bank is located does not provide deposit protection of at least an equivalent 
level of deposi t protection in Montenegro.  
 
WT/TPR/G/359  
 
Page 12 para 2.50 mentions that nine local governments have identified business zones of local 
importance so far in view of establishing a special regime and aid.   
 
EU Question N°19: Could Montenegro explain whic h criteria were used to identify these business 
zones? Has the national body responsible for State aid control given its comments prior to the 
establishment of the business zones? If so, what were the comments of the national body 
responsible for State aid  control, and were they taken into account?  
 
Answer:  
 
Decree on business zones On 17 November 2016, the Government of Montenegro adopted the 
updated version of the Decree on Business Zones (OG MNE No. 20/11 and 20/15).  
According to the Decree on business z ones (OG MNE No. 20/11 and 20/15) business zones are 
divided into:  
1) Business zones of strategic importance and  
2) Business zones of local importance.  
 
Business zones of strategic importance could be founded at the locations that fulfil the following 
requirements:  
1) the municipality, where the business zone is located, must have more than 
20,000  inhabitants;  
2) the location area cannot be less than 10ha;  
3) the location must be in accordance with the spatial planning documents;  
4) for the location property issues re lated to the site must be resolved.  
 
Business zones of the local interest could be founded at the locations that fulfil the following 
requirements:  
1) the location must be in accordance with the spatial planning documents;  
2) for the location property issues rel ated to the site must be resolved.  
 
Yes, the Commission for the State Aid Control is responsible for providing comments on draft 
Decisions on the establishment of a business zone.  
 
Page 12 para 2.51  mentions that "beneficiaries are exempted from various contributions and 
taxes, and get other incentives such as land at a favourable price".  
 
EU Question N°20:  Could Montenegro please indicate the national legal basis for such incentives?  
 
Answer:  
 
The Decree on fostering new direct incentives (OG MNE No. 80/15) and the Decree on business 
zones (OG MNE No. 20/11 and 20/15) provide for the national legal basis for mentioned 
incentives.  
 
Page 24 para 3.70  on standards  states that "The Institute for St andardization Montenegro 
(ISME) is competent for adopting of Montenegrin standards. The number of Montenegrin standards 
and related documents that are identical with European and international standards is 17,102 by 
the end of 2017." The WTO Secretariat re ports page 78 para 3.76 "As of December 2017, about 
7,000 (40.7% of all standards) Montenegrin standards (MESTs) were contained in technical 
regulations issued by the six competent ministries.   At the same time, a total of 17,191 MESTs 
were adopted (6,970 in 2012) and 16999 were aligned to the E U or to international standards ". 
 WT/TPR/M/369/Add.1  
 
- 38 - 
 
  The EU notes  that the number of Montenegrin standards adopted by the end of 2017 varies 
depending on the source (WTO Secretariat, Montenegro and EU own sources. EU own sources 
consider that the total is 16118 aligned to EU/ international standards.)  
 
EU Question N°21°:  The EU would welcome clarification as to the number of standards adopted 
that are identical with EU and international standards. In addition the EU would welcome furth er 
information regarding the situation of the ATCG (Accreditation Body of Montenegro) resources to 
address the current lack of sufficient capacities.  
 
Answer:  
 
As stated in paragraph 3.76 from the WTO Secretariat Report as of December 2017, about 
7,000  (40.7% of all standards) Montenegrin standards (MESTs) were contained in technical 
regulations issued by the six competent ministries. At the same time, a total of 17,191  MESTs 
were adopted (6,970 in 2012).  
 
Clarification:  There were only two national standa rds, and these were maintained due to the lack 
of equivalent international and/or European standards.  
 
All other ISME standards are based on international or European standards; 16,999 MESTs are 
identical to European standards (CEN, CENELEC, ETSI (see bel ow)) and the rest identical to 
international standards (192).  
 
Out of 16,999 MESTs that are identical to European standards (ENs), the structure is:  
• 12,251 MESTs are identical to ENs published by CEN;  
• 4,455 MESTs are identical to ENs published by CENELEC;  
• 293 MESTs are identical to ENs published by ETSI.  
 
Out of 16,999 MESTs that are identical to European standards, 7,355 ENs are identical to relevant 
international standards (4177 ENs identical to ISO and 3178 ENs identical to IEC standards).  
 
Also, adopting of new, as well as re -examining and withdrawing previously adopted standards is a 
dynamic process, and the number, structure, etc., is constantly changing. This, among other 
things, depends on the activities of European and International sta ndardization organizations 
whose work is continuously followed by ISME.  
 
As for the ATCG (Accreditation Body of Montenegro) resources the ATCG has 7 permanent 
employees in total (including director) that are involved in accreditation process. All of them are 
with adequate qualifications, experience and competence. Accounting, legal services, IT equipment 
and web portal maintenance are outsourced. ATCG has also several bodies and committees (e.g. 
Management Board, Accreditation Committee, Appeals Committee)  involved and contributing to its 
work.  
 
Having in mind that there are 35 Conformity Assessment Bodies (CABs) accredited by ATCG, 
current number of permanent staff is sufficient for handling the type, range and volume of work 
performed. So far there have n ot been any delays in accreditation procedure. But in the case that 
number of accredited CABs increase in the future (as expected), ATCG will have to employee some 
additional staff on permanent basis.  
 
ATCG has 8 Lead Assessors, 33 Technical Assessors and 35 Experts registered in the Pool of 
Assessors. Three assessors (lead assessors) are from internal staff, while others are externally 
engaged. Most of external assessors are registered assessors of national accreditation bodies from 
neighbouring countries.  In order to maintain and raise the competence of existing assessors, and 
also to increase the number of assessors coming from Montenegro, ATCG has a permanent need 
for training. Training is also needed for ATCG permanent staff and for members of ATCG bodi es. 
Presence of ATCG delegates to official EA and ILAC/IAF meetings is also very important.   
 
ATCG needs to develop and establish a comprehensive IT system that will support its daily work 
and contribute to effectiveness of its operation. The assistance i n development of such IT system 
will be sought through EU funded projects, and its final implementation is foreseen for 2020.  
 WT/TPR/M/369/Add.1  
 
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  Page 24. Para 3.75 on tourism. "Looking at the structure of revenues from services in the 
period 2010 -2016, revenues from touris m were 67 .3% out of total revenues and they represent 
the main generators of revenue growth from services. The following revenues in the transport 
sector with a share of 17.4%, followed by a significantly smaller share revenues amounted in the 
area of othe r services (7.2%) and revenues amounted in the construction services and other 
business services (by 3.6% and 4.5%). The significant investments, especially foreign direct 
investments in the area of tourism and infrastructure, have resulted in an increase in tourism 
revenues from €125 million in 2002, to €821.5  million, in 2016." and Page 159. Paragraph 
4.178 of the WTO Secretariat report which mentions the preparation of a law on tourism and 
hospitality focussing  on sustainable development, harmonization w ith environmental protection 
and its resources, and the reduction of the impact of climate change and adherence to the 
principle of a low -carbon economy. It incorporates penalties for advertisers who permit the 
advertising of service providers who do not h ave the requisite work permit. It will also transpose 
the provisions of the EC Directive on services in the internal market. […]"  
 
EU Question N°22 : When does Montenegro plan to adopt and put in force the new Law on 
Tourism and Hospitality?  
 
Answer:  
 
The new Law on Tourism and Hospitality was adopted on December 29, 2017 by the Parliament of 
Montenegro, and entered into force on January 18, 2018 ("Official Gazette of Montenegro" 
No.002/18, 013/18). In order to prepare the prerequisites for the successf ul implementation of the 
Law, very intensive activities on drafting a set of secondary legislation are underway, in 
accordance with the authorizations of the Law.  
 
EU Question N°23  :The EU would like to get detailed information on the policies in preparati on or 
adopted related to tourism - development of infrastructure, subsidies, licenses and the involvement 
of the state in this activity given the Secretariat report paragraphs 3.128 and 3.130 on this aspect 
as well as on linkages between agricultural develo pment and tourism potential linkages.  
 
Answer:  
 
Depending on the area, each institution, through the work plan for the current year, but also 
through the long -term work plan, depending on the type of project and through the annual capital 
budget, defines i ts priorities. With regard to the tourism infrastructure, the capital budget for 2018 
amounts to 13.980.000,00 EUR for the implementation of projects in all regions of Montenegro. 
Implementation activities are under the responsibility of the Ministry of Su stainable Development 
and Tourism, the Directorate of Public Works and other related institutions.  
 
With reference to the tourism related incentives, we may speak about the competencies of some 
other institutions, apart from the Ministry of Sustainable Dev elopment and Tourism. For a few 
years, the Ministry of Sustainable Development and Tourism, in cooperation with the NTO of 
Montenegro, has been adopting the Program of Incentive Measures, in line with the authorization 
given by the Law on Tourism and Hospi tality. The goal of the Program is to support projects and 
activities aimed at enriching and improving the quality of tourist offer in order to generate higher 
income in tourism, increase accommodation capacities occupancy rates, average consumption and 
employment.  
 
Pursuant to the Decree on Direct Investment Incentives ("Official Gazette of Montenegro", 
No. 08/15, and No. 80/15), The Secretariat for Development Projects provides the support with 
the purpose to attract direct investments in the production sector or service sector, for 
investments in tangible and intangible assets of newly -established commercial entities, for 
expanding the capacity of existing commercial entities or for diversifying the production of a 
commercial entity to new products and p roduction processes.  
 
The Investment and Development Fund of Montenegro, on the other hand, has created a special 
tourism support programs for the construction of new and improvement of the existing hotel 
capacities, improvement of tourist infrastructure a nd self -catering vacation offers, as well as the 
support to hospitality. Within these lines, the fund approves loans under favourable conditions.  
 WT/TPR/M/369/Add.1  
 
- 40 - 
 
  With regard to licenses or work permits, pursuant to the provisions of the Law on Tourism and 
Hospitality ("O fficial Gazette of Montenegro" No.002/18, 013/18), approvals for work in tourism 
and hospitality activities are issued by the Ministry of Sustainable Development and Tourism and 
by competent local government authorities. Procedures for obtaining work appro vals are 
prescribed by the referred law.  
 
Concerning the activities referred to in paragraphs 3.128 and 3.130, we can confirm that the role 
of the state is that the Council for Privatisation and Capital Projects, as a body of the Government 
of Montenegro, proposes a Decision on the privatisation plan with the proposal of the company, 
the location for valorisation and the models of privatization and it submits the proposal to the 
Government for adoption. The privatization plan for 2018 was passed at the sess ion of the 
Government of Montenegro held on 1 March 2018, envisaging the valorisation of 12 tourist sites, 
as well as the privatisation of a tourist company that is currently owned in majority by the state.  
 
As far as the linkage between the agricultural d evelopment and tourism is concerned, we can say 
that Montenegro, among the branches of economy of the highest importance for economic growth, 
in addition to tourism, includes agriculture as well. Given that the gastronomy is inseparable from 
tourism, it is  then obvious that the destination tends to include its agricultural products in its 
authentic tourist offer. Montenegrin hoteliers and other tourism service providers use the 
resources available in Montenegro, but we are of the opinion that this segment m ust be at an even 
higher level. A project with the aim to better integrate food producers with hospitality service 
providers and to advertise authentic gastronomic offer is being developed in cooperation with UN 
FAO and EBRD and the Ministry in charge of t he area of agriculture, in order to use this segment 
for even better promotion of tourism product of Montenegro.  
 
Page 31, para 3.10.6 on postal services . The Law on Postal Services (OG MNE No. 57/11 and 
55/16) regulates the conditions and procedures for t he provision of universal postal service and 
other postal services, as well as other issues of importance for the provision of postal services. In 
accordance with this law, a reserved postal service (a reserved postal service is part of universal 
postal se rvice performed by a universal postal operator, limited by weight and price - 50 gr/mail) 
ceased to exist as of 1 January 2013. Regarding the improvements in postal sector in 2018, the 
Law will be amended, and it is also planned to prepare a new Strategy f or the development of 
postal sector for the period 2019 -2023. All Postal Operators delivered a total of 23,290,341 postal 
services in 2016, which is 6.6% more than in 2015.  
 
EU Question N°24 : Could Montenegro provide an update on more recent 
developments/ intentions in the area of Postal Services?  
 
Answer:  
 
The Proposal of the Law amending the Law on Postal services is under preparation. The Proposal of 
the Law is expected to be sent to the Government for adoption by the end of June 2018. Changes 
will assu re sustainability of universal services financing and alignment with EC DIRECTIVE 
2002/20/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 7 March 2002 on the 
authorisation of electronic communications networks and services (Authorisation Directive).  
 
The Strategy for the development of postal sector for the period 2019 -2023 is planned to be 
adopted until the end of 2018.  
 
 
 WT/TPR/M/369/Add.1  
 
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  ICELAND  
10.  GENERAL / UNSPE CIFIED / OTHER QUEST IONS  
 
Question(s)  
Montenegro has played a central role in putting women’s economic empowerment at the heart of 
the trade agenda as a member of the Trade Impact Working Group, established under the auspices 
of the International Gender Champions -Geneva. On the occasion of the  11th WTO Ministerial 
Conference in Buenos Aires more than 120 WTO members and observers launched a joint 
declaration on women and economic empowerment that aims inter alia at sharing best practices 
and working together in the WTO to remove barriers for wo men’s economic empowerment and 
increase their participation in trade.  
Could Montenegro share information on the participation of women in the Montenegrin economy? 
Have particular barriers that limit women’s participation in trade been identified? Has Monte negro 
implemented any particular measures to address such barriers or to encourage women’s 
participation in trade and promote women’s entrepreneurship, or are  such measures being 
developed?  
Answer by Montenegro  
In 2017, according to the latest data from th e Tax Administration, the share of active business 
entities owned by women account for around 24% of the total number of entities, and women 
account 45,5% of total employment in Montenegro.  
Regarding the barriers for business development, apart from tradit ional attitudes and stereotypes, 
the significant barrier is also the women ownership over estates. Women are the owners of only 
4% of houses, 8% of land, and 14% of holiday homes (cottages) in Montenegro, which limits their 
ability to provide guarantees fo r loan repayment in the form of a mortgage.  
In order to create a more favourable business environment for the development of women 
entrepreneurship and its promotion in public, in June 2015, Montenegro adopted the Women's 
Entrepreneurship Development Strat egy for 2015 -2020. Within the Strategy Action plan, measures 
have being implemented continuously for the promotion and improvement of women's 
entrepreneurship. In line with the objectives of the Strategy, the following effects have been 
achieved: progress has been made in creating a more favourable business environment, the 
financing of women businesses, the availability of knowledge and skills, and the promotion of 
successful women in the media.  
 WT/TPR/M/369/Add.1  
 
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  JAPAN  
Questions based on the Secretariat Report (WT/TPR/S/3 69) 
 
4. Trade Policies By Sector  
Telecoms (2.C)  
4.117  
 
Telecommunications market  
 
1. How is the number of subscriptions of the fixed line market changing?  
 
Answer:  For the first time in last 4 years the number of subscriptions of the fixed line was 
increased for 2.8% in 2017 compared to previous year.  
 
2. What is the penetration rate of IP phones?  
 
Answer:  All operators provide fixed telephony over IP platforms. Penetr ation rate (% of 
population) at the end of 2017 was 24.5%.  
 
3. What is the percentage of metal line and optical fiber line?  
 
Answer:  Optical fiber lines - 25%, and copper twisted pairs and coaxial cables - 75%.  
 
4. How is the number of mobile phone  subscriptions  changing?  
 
Answer: Number of mobile phone subscriptions is stable over past few years, and is above 
1,000,000. In 2017, we have increased number of subscribers by 0.38%.   
 
5. What are the regulations on MVNOs? Also, how are they different from regulations o n 
MNOs?  
 
Answer: There is no specific regulation  on MVNO. According to the Law on Electronic 
Communications, there is no different treatment of MVNOs and MNOs.  
 
6. Could you explain of your regulations on SIM lock?  
 
Answer: The operator may limit the terminal  equipment to the operation within its own network 
only if the subscriber takes the equipment from the operator upon the conclusion of subscriber 
agreement for the minimum term.  
 
In the event of expiry or early termination of subscriber agreement, at the request of the 
subscriber, the operator shall promptly and free of charge, enable further use of terminal 
equipment in other networks.  
 
7. What is the share of mobile devices which are produced domestically? Do you have any 
local content requirement for produ cing mobile devices?  
 
Answer: There is no mobile device production in Montenegro.  
 
8. Do you have specific regulations for private network service?  
 
Answer: No, we don't have.  
 
4. Trade Policies By Sector  
Telecoms (2.C)  
4.129  
 
Operators with Significant Market Power, Major Supplier  
 
1. Do you have regulations which focus on operators with Significant Market Power?  
 WT/TPR/M/369/Add.1  
 
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  Answer:  Yes, the Law on Electronic Communications.  
 
2. What are the criteria for the designation of operators with Significant Market Power?  
 
Answe r: The criteria for designing the SMP operator(s) are:  
- the market share of the operator in the relevant market and changes in the structure 
over a longer period of time;  
- barriers to entry into the relevant market and the impact of potential competition on 
that market;  
- the influence of large users on the operator's power (compensatory purchasing 
power);  
- absence of potential competition;  
- economies of scale and economies of scope;  
- technological advantage and superiority;  
- the level of development of the sales a nd distribution network;  
- degree of vertical integration;  
- degree of diversification of services;  
- privileged access to capital markets or financial resources;  
- limitation of capacity increase;  
- the connection of the services it provides.  
 
3. What are the differen ce of laws and regulations between operators with Significant Market 
Power and the other telecommunications operators.  
 
Answer:  
The Agency for electronic communications and postal services has the right to impose regulatory 
obligations to SMP operators. These regulatory obligations are:  
1) Obligation to publish data (RIO – Reference interconnection offers)  
2) Obligation to ensure non -discrimination  
3) Separate accounting records  
4) Access to and use of network elements  
5) Price control and cost accounting  
6) Regulation of retail prices.  
 
4. Which companies are operators with Significant Market Power?  
 
Answer:  
Market 1: Wholesale call termination on individual public telephone networks provided at a fixed 
location – SMP operators are: Crnogorski Telekom AD Podgorica, Telenor d. o.o. Podgorica, MTEL 
d.o.o. Podgorica, Telemach d.o.o. Podgorica  
 
Market 2: Wholesale voice call termination on individual mobile networks – SMP operators are: 
Crnogorski Telekom AD Podgorica, Telenor d.o.o. Podgorica, MTEL d.o.o. Podgorica  
 
Market 3: (a) Wholesale local access provided at a fixed location – SMP operator is Crnogorski 
Telekom AD Podgorica  
 
Market 3: (b) Wholesale central access provided at a fixed location for mass -market products – 
SMP operator is Crnogorski Telekom AD Podgorica  
 
Market 4:  Wholesale high -quality access provided at a fixed location – SMP operator is Crnogorski 
Telekom AD Podgorica  
 
5. Do you have a concept of "Major Supplier" based on WTO rules or FTAs? If yes, how do 
you regard major suppliers in your domestic laws and regulat ions? (e.g. Possession of 
essential facilities, presence of market power)  
 
Answer:   
No. Term "Major Supplier" is not recognized /used in our legislation. We do consider this term (as 
explained in WTO rules) as equivalent with SMP operator.  
 WT/TPR/M/369/Add.1  
 
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  6. How many telecommunications operators do you have? What is the percentage of each 
service which your telecommunications operators provide?   
 
Answer:  
Montenegro has had 35 registered operators at the end of 2017.  
4 – Fixed operators  
3 – Mobile operators  
16 – ISP 
5 – AVM (TV programs distribution) operators  
Other registered operators do not provide services to the end users.  
 
4. Trade Policies By Sector  
4.4 Services  
 
ICT service  
 
1. How large is the ICT sector in your whole domestic industry?  
 
Answer:  
Share of ICT  secto r in GDP is approximately 4%.  
 
2. What amount of R&D expense is spent for the ICT industry?  
 
Answer:  
Currently we don't have any data on R&D expense is spent for the ICT industry.  
 
3. Could you provide us transition of the number of public telephones?  
 
Answer:  
In 2017 the number of public phones (which it provided VoIP services) was 76.  
In 2016 the number of public phones (which it provided VoIP services) was 79.  
In 2015 the number of public phones (which it provided VoIP services) was 78.  
 
4. How has th e cloud computing service developed so far? Do you have any regulations on 
this sector?  
 
Answer:  
The cloud computing service has not been regulated so far. The relevant laws regulate that data 
and information systems have to be at the territory of Monteneg ro. 
 
5. How has sharing of transmission towers by network operators developed? Does 
competition in the market of sharing service in transmission towers happen?  
 
Answer:   
Sharing of transmission towers by network operators is very developed, and there is joint  use of 
towers on 51% of total number of location.  
 
6. How has "new services" such as OTT/VOD developed in your country? Do you have 
regulations on those services?  
 
Answer:   
OTT/VOD is very popular. There is no specific regulation.  
 
7. Do you have any consumer p rotection measures for users of the Internet services?  
 
Answer:   
Yes, contracts concluded between operators and consumers contain consumer protection 
measures, as prescribed by the Law of the Electronic Communications (Official Gazette no 40/13; 
056/13, 00 2/17), and in the General conditions for providing operator services. On the both of 
these (typical contract and General conditions for providing operator services) The Agency for 
Electronic Communications and Postal Services gives consent to the operators  according to the 
mentioned Law.  WT/TPR/M/369/Add.1  
 
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Also, the Agency adopted the Rulebook on the quality of public electronic communication services 
(Official Gazette no 002/18). The Rulebook prescribes parameters for quality of public electronic 
communication services, man ner for their measurement and disclosure and deadlines for their 
submission  
 
Moreover, the Agency has been publishing flyers on the web site www.ekip.me in order to  inform 
consumers about their rights as much as possible. The flyers contain the information about the 
rights of users of electronic communications services, protection of children in using Internet, 
usage of smart phones, broadband internet access, measur ing the quality of broadband Internet 
connection and calculator.  
 
8. Do you have any disciplines regarding liability of the internet service providers?  
 
Answer:   
Disciplines regarding liability are contained in Article 167 of the Law on electronic communicati ons 
noting:  
''(1) The operator shall determine the amount and manner of compensation payable to the 
subscriber if its services deviate from the terms stipulated in the Subscriber Agreement with 
regard to their quality and availability.  
(2) The subscriber shall be entitled to request from the operator the compensation of direct or 
indirect loss occurring as a consequence of poor service quality or restriction of access to the 
network or service.  
(3) The operator shall not be obliged to compensate the subsc riber if a poor service quality or 
restricted access to network occurred due to the circumstances beyond the operator's control. ''  
 
9. What is the scheme of dispute resolution between ICT service providers?  
 
Answer:  
At the request of operators, the Agency ca n mediate in resolution of disputes between the 
operators.  The Agency shall end the procedure for mediation within 90 days from the date of 
application for mediation. The decisions of the Agency shall be final, what means that only lawsuit 
can be lodged t o the court.  
 
4. Trade Policies By Sector  
Audiovisual (2.D) / Broadcasting and film production  
 
Broadcasting  
 
1. What type of domestic broadcasting exists? (e.g. terrestrial broadcast / multimedia 
broadcast / satellite broadcast / cable TV)  
 
Answer:  
There are terrestrial (DVB -T2), cable, IPTV, satellite TV broadcasters.  
 
2. How do you define "broadcasting" in your domestic laws and regulations?  
 
Answer :  
Pursuant to the Point 3 of Article 8 of the Electronic Media Law, " electronic media  (a linear 
audiovisual media service) means a radio or television broadcast which presents a set of 
information in the form of images and/or sound or combination thereof (audiovisual content) 
constituting an individual item, under the same name, intended t o inform and meet the cultural, 
educational, social and other needs of the public, which enables simultaneous listening to and/or 
viewing of programmes on the basis of a programme schedule".  Furthermore, according to the 
Point 4 of the same Article, "the broadcaster  means an AVM service provider registered for radio 
and television broadcasting who, in terms with this Law, was granted a licence for television 
and/or radio broadcasts".  
 
3. What type of broadcasting is most frequently viewed or listened?  
 WT/TPR/M/369/Add.1  
 
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  Answer :  
There are no official surveys offering reliable data about content preferences . However it is 
estimated that entertainment (TV series, talent shows, reality programs) and sport programs 
attract significant audience.  
 
As for platform preferences , according to the Agency for Electronic Report (No. 02 -186 from 6 
February 2018), at the end of 2017, approximately 11% of Montenegrin households used only 
free-to-air (DVB -T2) reception of radio and TV programmes. On the other hand, the remaining 
89% of households opted for one of the conditional access platforms for distribution of radio and 
TV programmes.  
 
In terms of the share of conditional access platforms, the cable platform is in the leading position 
in the market of distribution of radio and TV p rogrammes to the end users, with the market share 
of 37,81%. It is followed by DTH with 30,24%, IPTV with 28,04% and DVBT2 with 3,91%.  
 
4. Does pay -broadcasting exist? If they exist, what kind of content are broadcasted?  
 
Answer :  
There are cable/IPTV/DTH/DVB -T2 operators who offer conditional access services including 
packages of domestic and foreign TV programs. These services are available as pay -TV services.  
 
Apart from generalist TV channels, they offer a similar structure of specialist programs including  
sports, children, entertainment, movie/TV series, music, travel and leisure channels.   
 
Only one of these operators offer „video on demand" service.  
 
5. Do state -owned broadcasting / public broadcasting  enterprises exist? If so, how is the 
government involv ed with those broadcasters?  
 
Answer :  
Yes, there are public broadcasting  enterprises. Please see Point 4.134 of the Report by the 
Secretariat.  
The establishment and operation of public service broadcasters on local, regional and national 
levels are regulat ed by the Electronic Media Law.  
 
The Law on National Public Broadcaster Radio and Television regulates the work of the national 
public service broadcaster, Radio Television of Montenegro (RTCG), in terms of programme  
content, as well as management methods. It defines the RTCG's activities, responsibilities and 
accountability, funding, management bodies, as well as the RTCG statute.  
 
According to the Law, the Government's involvement is limited to ensuring the that the  public 
broadcasters' funding is ensured in a timely and stable manner in line with the agreement 
regulating mutual rights and obligations as regards the use of funds from the Budget of 
Montenegro dedicated to RTCG.  
 
6. Do you have any regulations on foreign video -casting service? (e.g. Hulu and Netflix)  
 
Answer : No. 
 
7. Do you have any reservations for broadcasting service in your FTAs? If yes, what kind of 
reservations do you have?  
 
Answer : No, there are no reservations for these services.  
 
4. Trade Policies By  Sector  
Telecoms (2.C)  
 
Market Entry  
 
1. When new competitors enter the telecommunications market, based on what laws and 
regulations, what kind of requirements exist?  
 WT/TPR/M/369/Add.1  
 
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  Answer:  
Requirements for new competitors entering the telecommunications market are provided for in the 
Law on Electronic Communications.  
 
Any legal or natural person, prior to the inception of use, and/or the operator, prior to the 
termination or change in the regime of use of public communications networks or prior to the 
provision of p ublicly available electronic communications services, has to submit a written 
application to the Agency on Electronic Communications and Postal Services.  
 
The application includes:  
1) for natural person – name and surname, unique personal identification n umber and address or 
for a foreign natural person - the name and surname, date and place of birth, passport issuing 
country or identity card and number of such document;  
 
2) for legal entity – name of company, seat, statistical and registration number, account number 
and name and surname of the representative;  
 
3) brief description of public electronic communications networks and/or publicly available 
electronic communications services, which shows network and/or service characteristics;  
 
4) anticipated  date of inception, change or termination of regime of usage of public electronic 
communications networks or provision of publicly available communications services. Of course, 
the provisions of the general Company Law are applicable as well.  
 
What are the  types of entry procedures for telecommunications operators? Also, what is the 
difference between each type?  
 
Answer:  
Following the submission of application mentioned in the previous question the Agency within 
seven days from the date of receipt of a duly  submitted application referred to in Article 46 
paragraph 1 of this Law, has to register the operator in the Registry of Operators or make the 
change or deletion from the Registry and issue the confirmation of such registration, change or 
deletion from th e Registry.  
 
If the application does not include the data mentioned above (previous question) the Agency shall 
inform the applicant, within seven days from the date of application receipt, to supplement the 
application within the period which may not be sh orter than seven days.  
 
2. What sort of classification for telecommunications operators do you have? (e.g. possession 
of facilities, types of services)  
Answer:  
Telecommunications operators are classified according to services they provide. According to the 
Law on Classification of Activities, telecommunications are divided into cable, wireless, satellite and 
other telecommunication activities.  
 
3. Do you have any restrictions on foreign direct investment on telecommunications market?  
 
Answer: No. 
 
4. Are there requi rements for foreign investors such as preliminary examination?  
 
Answer: No. 
 
5. Do you have restrictions on the participation of foreigners in management?  
 
Answer: No. 
 
6. Is there a restriction on share ownership by foreign governments?  
 
Answer: No. 
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  4. Trade Policies By Sector  
Telecoms (2.C)  
4.123  
 
Radio frequency, universal service, international roaming, number portability, submarine cable  
 
1. How is radio frequency allocation done? (Comparative examination method / auction / 
others)  
 
Answer:  
According  to the Law on Electronic Communications:  
• Natural and legal persons may use radio frequencies based on the approval for use 
of radio frequencies issued by the Agency for Electronic Communications and 
Postal Services.  
• The state administration body in charge  of defence activities may use radio -
frequencies which are allocated for military use under the Radio -Frequency 
Spectrum Allocation Plan, without the approval for the use thereof.  
• Some radio -frequencies which may be used without the approval, and the terms  of 
their use, as well as radio -frequencies the use of which is mandatory to be 
reported to the Agency, are defined by the regulation of the Ministry.  
• The approval for the use of radio -frequencies shall be issued by the Agency based 
on the application for the approval of use thereof.  
• The approval for the use of radio -frequencies from the bands which are assigned 
on the territory of Montenegro on an exclusive basis shall be issued based on the 
procedure of public tendering (sealed bid tender or auction) if under the 
appropriate radio -frequency assignment plan for the use of public electronic 
communications network and/or in accordance with Article 105 of this Law it is 
established that the expressed interest surpasses the availability of radio -
frequency reso urce. 
 
2. Regarding radio frequency allocation, what restrictions are imposed on foreign business 
operators?  
 
Answer:  
There are no specific restrictions for using radio -frequencies by foreign operators. The procedure 
and preconditions are explained in the previous answer.  
 
3. How do you allocate a mobile phone number? Do you face shortage of mobile phone 
number?  
 
Answer:  
Mobile phone numbers are allocated to mobile operator on request. We do not face shortage of 
mobile phone numbers.  
 
4. Do you have a toll -free n umber? If yes, could you explain how does the telecom regulator 
deal with it?  
 
Answer:  
Yes, we have toll -free numbers. Agency on Electronic Communications and Postal Services assigns 
toll-free numbers to the operators which implement the number and to the company which uses 
the number pay for phone calls.  
 
5. Do you have any universal service system in your telecommunications laws and 
regulations? If yes, what services are included in the universal service?  
 
Answer:  
We have universal service in our low and reg ulation. The services of the Universal Service include:  
1) meeting any reasonable user's request for the access to public electronic communications 
network and publicly available electronic communications services on a fixed location, which 
enables the us e of voice communication and data transfer rate which enables functional Internet 
access;  WT/TPR/M/369/Add.1  
 
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  2) providing the service of universal telephone directory (hereinafter: "Universal Directory") and 
universal enquiry service for subscriber numbers (hereinafter: „Un iversal Enquiry Service");  
3) special measures and benefits for the persons with reduced mobility and persons with 
disabilities, including the access to emergency services, enquiry service for subscriber numbers 
and directory of subscribers, which enables  them to have the same possibilities of access to the 
publicly available telephone services as the other end users as well as the appropriate selection of 
operators available to the majority of end users.  
 
6. How do you finance providing universal service?  
 
Answer:   
Compensation for net costs of the Universal Service is provided from contributions paid by 
operators whose share in the total annual revenue in the area of electronic communications 
exceeds 2%.  
 
For an individual operator, the amount of contribut ion and method of payment is determined by 
the Agency in proportion to the share of its revenue generated from the provision of public 
electronic communications services and/or giving for use the electronic communications network, 
electronic communications  infrastructure and associated facilities in the total annual revenue 
generated in the electronic communications sector.  
 
7. What international agreements regarding international roaming do you have?  
 
Answer:   
Agreement on reducing prices of roaming services on public mobile communications networks is 
signed among Ministries responsible for the area of electronic communications from Bosnia And 
Herzegovina, Republic Of Macedonia, Montenegro and Republic of Serbia .  
 
Agreement established the glide path of lowering roaming costs in region in accordance with EU 
Regulation (EU) No 531/2012 of the European Parliament and of the Council of 13 June 2012 on 
roaming on public mobile communications networks.  
 
8. Is number por tability between fixed and mobile phones possible?  
 
Answer:  No. 
 
9. Is number portability possible between major operators and other operators?  
 
Answer:  Yes. 
 
10. Do you have any regulations on submarine cables?  
 
Answer:  No. 
 WT/TPR/M/369/Add.1  
 
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  MEXICO  
1. ECONOMIC ENVIROME NT 
1.2 Re cent Economic Developments  
1.12 
 
Question(s)  
Respecto a la esfera del entorno empresarial y la reducción de la economía informal, ¿se tienen 
contempladas medidas que contribuyan a la internacionalización de las pymes?  
 
Answer by Montenegro  
The Government of Montenegro is focused on improvement of the business environment where the 
development of small and medium -sized enterprises is one of the priority reform measures. 
Several measures and activities have been conducted in order to contribut e to SMEs 
internationalization, such as improving the organizational concept of clusters and strengthening 
the connection between enterprises through financial support for the implementation of a program 
encouraging the development of clusters and grants f or capacity building for cluster management 
and the promotion of the development of new clusters. Additionally to the business entities it is 
available grant financial support for improvement the implementation of international business 
requirement standar ds of doing business.  
Also, in the area of support for the internationalization of enterprises and their business in foreign 
markets, through the activities of the Enterprise Europe Network with national financial support 
within COSME program it is enabled  strengthening the export performance of enterprises and their 
greater inclusion within the region and the EU. Montenegro is part of COSME  Enterprise Europe 
Network -EEN, supporting SMEs to internationalization and better use the opportunities offered by 
the single EU market. It is enabling SMEs to obtain the required information and services of 
importance for the development of their operations on the EU market, for finding business 
partners, for innovations, technology transfer and participation in EU prog rammes. More 
specifically, internationalization of SMEs is supported through providing advisory services on the 
international markets, organization of business meetings, organization of training for the 
improvement of the export performance of enterprises with the aim of enhancing the 
competitiveness and participation of SMEs in international value chains, etc.  
1. ECONOMIC ENVIROME NT 
1.2 Recent Economic Developments  
1.12 
 
Question(s)  
El Párrafo 1.12 señala que  para la facilitación del comercio exterior y las inversiones, se contempla 
por ejemplo el desarrollo de zonas empresariales.   Que otras medidas, en particular para la 
facilitación del comercio están considerando.   
Answer by Montenegro  
When it comes to tra de facilitation measures the Government adopted the Trade Facilitation 
Strategy on the session held on 29 March 2018. The Strategy represents a joint five -year reform 
plan for all competent authorities in the area of trade facilitation and answers to a num ber of 
obligations arising from the EU accession, WTO Trade Facilitation Agreement and regional CEFTA 
Additional Protocol 5.  
The Strategy envisages that by the end of December 2022, Montenegro will eliminate cross -border 
administrative inefficiencies affec ting its competitiveness, thus reducing the time for import, export 
and transit of goods by 50%, and the accompanying costs by 20%.  
Investment facilitation measures are explained in details in the relevant parts of the Report by 
Montenegro (points 2.6 and 2.6.1) and the Report by the Secretariat (points 2.4 and 3.3.1).  WT/TPR/M/369/Add.1  
 
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  2.  TRADE AND INVEST MENT REGIME  
2.3  Trade Agreements and Arrangements  
2.3.1  WTO  
2.21 
 
Question(s)  
¿Cuál es el estado de las notificaciones pendientes y las acciones que se tienen previstas para 
ponerse al día?  
Answer by Montenegro  
Pending notifications are under preparation and will be submitted as soon as possible.   
2.  TRADE AND INVEST MENT REGIME  
2.4  Investment Regime  
2.52 
 
Question(s)  
¿Cuales  son las principales acciones que se incluyen en la Estrategia de Desarrollo de la Sociedad 
de la Información 2020 y cuales son sus avances a dos años de su implementación?  
 
Answer by Montenegro  
The main activities included in the Strategy are: Information  security, e -Government, e -Business, 
e-Education, e -Health, e -Inclusion etc. The Action plans for implementation have been adopted 
and the line ministries conduct continuous monitoring of the implementation of all measures and 
degree of achievement of the defined objectives. The results indicate the commitment of all actors 
and overall percentage of implementation of the information society services planned activities is 
47 %, and 38 % are continuous activities. The Strategy is focused on the further improv ement of 
legal framework, strengthening of administrative capacities as well as on more intensive 
cooperation between the relevant institutions.  
4.  TRADE POLICIES B Y SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
 
Question(s)  
Esta pregunta se refiera al  Informe de Montenegro (WT/TPR/G/369).  3 POLÍTICA COMERCIAL; 
3.6 Agricultura, pesca y silvicultura; 3.6.2 Pesca:  
¿Cómo define Montenegro en su marco jurídico la pesca ilegal, no declarada y no reglamentada?  
Answer by Montenegro  
According to the Law on mari ne fisheries and mariculture (OG of Montenegro, No. 56/09, 47/15) 
measures of protection of biodiversity and environmental conditions strictly prohibit fishing, 
collection and marketing of protected species of fish and other marine organisms, sea turtles a nd 
sea lions, as well as shark finning and selling shark fins.  
Through the Order on closed season for all age classes of fish and other marine organisms (OG of 
Montenegro, No. 26/15) it is forbidden to catch certain species of corrals, cartilaginous and bo ny 
fishes, sea turtles, birds and sea mammals, and in case of accidental catch of these species, they 
have to be released to sea, alive and unharmed.  
Order on prohibition of fishing and trading juveniles, undersized fish and other marine organisms 
(OG of M ontenegro, No. 65/15) defines minimal lengths for fish species and other marine 
organisms, closed season for anchovy and limit for use of fishing gears for pelagic fish.  
Also, FAO Agreement on Port State Measures to prevent, deter and eliminate illegal, un reported 
and unregulated fishing (PSMA) has been ratified by Montenegrin Government in 2017. This 
Agreement seeks to prevent, deter and eliminate IUU fishing through the adoption and 
implementation of effective port State measures as a means of ensuring th e long -term 
conservation and sustainable use of living marine resources. Its intention is to be applied widely by 
Parties for vessels not entitled to fly their flags, and it encompasses vessels who are trying to 
enter to their ports, as well as those alrea dy present in the port.  WT/TPR/M/369/Add.1  
 
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  As the first step towards the effective fight against IUU fishing and a precondition for ratification of 
PSMA, Rulebook on the manner and conditions for issuing the catch certificate of fish and other 
marine organisms has been adopt ed in 2016, as the bylaw of the abovementioned Law. It defines 
total weight of fish per species which was caught by a certain fishing vessel, as well as the 
information of fish export, based on the invoice.  
All these documents in national legislation repre sent complete harmonization with EU regulations 
and recommendations of General Fisheries Commission for the Mediterranean (GFCM).  
4.  TRADE POLICIES B Y SECTOR  
Tourism (9)  
4.171  
 
Question(s)  
¿Cuál es la estrategia de Montenegro encaminada a diversificar los  productos turísticos?  
Answer by Montenegro  
The Strategy for the Development of Tourism in Montenegro until 2020 is the key strategic 
document of Montenegrin tourism, which was adopted in 2008. The strategic goal of Montenegrin 
tourism is: "By applying the  principles and goals of sustainable development, Montenegro will 
create a strong position of a global high -quality tourist destination; tourism will provide sufficient 
number of jobs and the growth of the standard of living for the population of Montenegr o, and the 
state will achieve income in a stable and reliable way."  
One of the key principles underlying this document is the need to diversify the tourist offer in the 
context of the valorisation of the comparative advantages that Montenegro owns and thus the 
development of specific forms of tourism. The need for diversif ication in order to balance the 
economic development between the northern and southern regions of Montenegro, and the 
transformation of Montenegro in the all -year tourist destination from the now predominantly 
seasonal destination is particularly expressed . 
Activities on the development of a strategy of cultural tourism have been launched, and by the end 
of 2018, the development of nautical, rural and health tourism strategies is envisaged.  WT/TPR/M/369/Add.1  
 
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  MOLDOVA, REPUBLIC OF  
(WT/TPR/S/369 from 7 March 2018)  
 
Para 6. (p 8) with reference to "... While Montenegro has submitted notifications to the WTO in 
most areas, some remain outstanding; the pending notifications (e.g. on import licensing, SPS, 
TBT, and production support) are expected to be addressed in the course of 2 018..."  
 
And Para 11. (p 8)  "...Import licensing requirements, which cover approximately 356 ten -digit 
HS tariff items or 3.6% of all tariff lines (240 in 2011 or 2.6% of all tariff lines (HS07)), are 
maintained for various reasons including protection of national security, human, animal or plant 
life or health, and to meet international commitments. The fees for import licences for medicines 
and medical devices are based on the total import value and those relating to the 
import/export/transit of drugs and  psychotropic substances amount to 1% of the total 
import/export/transit value, in line with the international conventions..."  
 
Question 1:  Republic of Moldova encourages Montenegro to present its pending notifications in 
the nearest time, specially Moldov a would like to be informed when Montenegro will submit its 
notifications on import licensing procedures, namely import licensing procedures or changes in 
these procedures under Article 5, 5.1, 5.2, annual questionnaire under Article 7.3, and 
notifications  of publications containing relevant information under Articles 1.4a and 8.2b of the 
Agreement on Import Licensing Procedures  
 
Answer:  
Pending notifications, including the notifications on import licensing procedures, are under 
preparation and will be sub mitted as soon as possible.   
 
Para 10. (p 8)  with regards to "...During the review period, trade facilitation developments 
included the ratification of the WTO Trade Facilitation Agreement (TFA) in 2016, steps to 
implement an authorized economic operator scheme, the establishment of a National Trade 
Facilitation Committee to address bottlenecks in this area, and participation in trade facilitating 
initiatives at the CEFTA level. Regarding customs valuation, the transaction value was the most 
used method an d no reference or minimum prices or fixed valuation schedules were used..."  
 
Question 2:  Since Montenegro (MNE) established the National Committee (Committee)  for Trade 
Facilitation already in May 2015, and the first National Strategy for Trade Facilitati on (Strategy) is 
currently under preparation, Moldova would like to better understand functioning and results of the 
Committee so far, as well as objectives and scope of the up -coming Strategy.  
 
Answer:  
The National trade Facilitation Committee was establi shed as a permanent multi -agency body 
composed of representatives of all relevant state bodies and the private sector, with the task to 
monitor trade facilitation reform process in Montenegro.  
 
In addition to this, the Committee is ensuring coordination a nd cooperation between above -
mentioned stakeholders; tracking implementation of the TFA and other TF related agreements; 
giving recommendations for development or amendment of strategic and legal documents; making 
contacts and ensuring cooperation with int ernational donors for the technical support; improving 
and strengthening partnership and trust between public and private sector; and increasing 
transparency in the process of trade facilitation reform.  
  
The NTFC oversees all on -going projects in the area  of trade facilitation, and regularly (once a 
year) reports to the Government about the progress. The project and the results are elaborated in 
the National report, pages 22 -23 (par. 3.60 -65).  
 
Moreover, under the NTFC's supervision, the first Trade Facil itation Strategy was drafted.  
(adopted by the Government on the session held on 29 March 2018). The Strategy represents a 
joint five -year reform plan for all competent authorities in the area of trade facilitation. The 
Strategy is also an answer to a numb er of obligations arising from the EU accession, WTO Trade 
Facilitation Agreement and regional CEFTA Additional Protocol 5.  
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  The Strategy envisages that by the end of December 2022, Montenegro will eliminate cross -border 
administrative inefficiencies affecting its competitiveness, thus reducing the time for import, export 
and transit of goods by 50%, and the accompanying costs by 20%.  
 
To achieve this strategic goal, the Strategy defines five "operational goals" and, with respect to 
each, sets out a "s et of measures" to be implemented by the competent authorities. These goals 
are focused on improving transparency and access to information; harmonization and 
rationalization of formalities, documentation and fees; implementation of simplified and expedite d 
procedures for clearance of goods; improving cooperation and increasing the effectiveness of 
border controls; and extension of automatic processing and electronic data exchange.  
 
•  In the same context, Moldova would like to hear when the ratification of t he CEFTA 
Additional Protocol 5 by MNE can be expected.  
 
Answer:  
The Parliament of Montenegro adopted the CEFTA Additional Protocol 5 in December 2017. The 
Law confirming the AP 5 is published in the Official Gazette of Montenegro – International 
Agreements  No. 1/ 2018.  
 
Moldova noticed that MNE involves important foreign assistance projects in the implementation of 
trade facilitation (TF). Moldova, recently embarked in an ambitious TF action plan, would 
appreciate MNE sharing experience on respective initia tives.  
 
Para 2.15. (p 33)  "...Another avenue for stakeholders' input into economic policymaking is the 
Competitiveness Council created in June 2017 (which replaces the Council for the Improvement of 
Business Environment, Regulatory and Structural Reforms).  The Council is chaired by the Prime 
Minister and its members include ministers responsible for the business environment as well as 
representatives from business associations, employer associations, the American Chamber of 
Commerce, the Foreign Investors C ouncil and the academic community..."  
 
Question 3:  Montenegro adopted the Industrial Policy and established the Competitiveness 
Council. Moldova would like to better understand expected impact of both on international 
competitiveness of MNE economy.  
 
Answ er: 
Industrial policy of Montenegro as comprehensive strategic document for development of industry 
and economy is focused on raising efficiency and productivity, more efficient sustainable use of the 
available natural resources, moving towards higher valu e-added production processes and 
identification of sectoral priorities with potential for growth, as well as on needs of enterprises that 
will have the greatest impact on international competitiveness of Montenegro's economy.  
 
Achievement of main strategi c objectives set out by the industrial policy and successful 
implementation of the policy implies growth of the following economic indicators:  
 
• increase in the share of industry in GDP,  
• increase in the number of employees in the industrial sector,  
• increase in the share of industry in total exports,  
• better ranking in the WEF (World Economic Forum) Global Competitiveness Report,  
• better ranking in the World Bank Doing Business Report,  
• better ranking in the Global Entrepreneurship & Development Index.  
 
By continual activities on implementation of Industrial policy, based on realization of annual action 
plans, various institutions from public and private sector involved in the process of policy 
implementation are implementing different programmes focused on realization set -up policy 
indicators towards enhancement of industrial base as important element of competitiveness of 
Montenegrin economy.  
 
Seeking to boost investment competitiveness, the Government of Montenegro has placed strong 
emphasis on improving the efficiency of the state administration, cutting the costs of 
administrative procedures and shortening their duration. Therefore, these asp ects of creating a 
favourable climate were at the centre of the measures which were implemented to enhance the 
business environment. In that regard, at its session held on 1 June 2017, the Government of WT/TPR/M/369/Add.1  
 
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  Montenegro passed the Decision on setting up the Comp etitiveness Council tasked with 
coordinating activities related to implementation of the priority reform measures set out in 
strategic documents, which aim to eliminate key obstacles to Montenegro's greater 
competitiveness and faster economic growth. There fore, the role of the Council is to:  
 
•  coordinate activities in the plan for the  implementation  of the priority  reform  measures 
defined in strategic development documents, which have the aim to remove the key 
obstacles for a greater competitiveness and fas ter economic growth of Montenegro;  
 
•  analyse the relevant regulations from the aspect of their influence on the business 
environment and competitiveness;  
 
•  initiate proposals  concerning  amendments  to regulations  in order to simplify or delete 
procedures th at represent a barrier to greater competitiveness or the termination of their 
validity;  
 
•  propose to the Government of Montenegro a plan for structural reforms to improve the 
competitiveness of the economy. It is prepared on annual basis, which is also an integral 
part of the Economic Reform Program and other key economic policy documents;  
 
•  monitor, coordinate and evaluate the key activities of public administration bodies and 
other competent authorities and institutions for further implementation of struc tural 
reforms, prepare the semi -annual reports on the implementation of structural reforms 
which along with the opinion, namely with the proposal measures, are submitted to the 
Government for consideration;  
 
•  participate in the process of drafting action  plan to combat the grey economy , 
employment plan, as well as in all development plans relevant to increasing 
competitiveness and strengthening macroeconomic stability and monitoring their 
implementation;  
 
•   publicly promote  the importance of raising the com petitiveness of the Montenegrin 
economy, for its overall economic development and improvement of the quality of life of 
citizens.  
 
Question 4:  Foreign Direct Investment (FDI) being in the centre of the MNE economic 
development agenda, what is MNE opinion on potential "race to the bottom" with the competing 
economies?  
 
Answer:  
 
Aligning investment policies with the  EU standard holds significant potential for the economies of 
the WB6 in boosting economic growth. Transparent and fair competition among the eco nomies will 
not hinder the interests of WB6 economies. The ultimate goal is to improve the attractiveness of 
the region for foreign and intra -regional business, and hence facilitate higher inflow of investments 
and generate higher entrepreneurial activity,  trade and ultimately jobs.  
 
Para 2.3.2.1  (p 37) Regional trade agreements (RTAs) 2.22.  As at end -November 2017, 
Montenegro had five RTAs in force with a total of 41 economies (Section 3.1.2 and 
Section  3.1.3.6). All RTAs have been notified to the WTO Committee on Regional Trade 
Agreements, with the exception of the RTA with the Russian Federation which dates back to 2000. 
The scope and depth of each of the agreements differs.  
 
Question 5:  Addressing the  issue of further liberalization of trade with Russia and EEU, e.g.: 
Moldova would like to understand whether negotiations with the Russian Federation, Kazakhstan 
and Belarus which have stalled are to re -opened in the foreseeable future? What is the curren t 
state of play?  
 
Answer:  
 
The subject of the negotiations with the Russian Federation was not the Free Trade Agreement, 
but only the Protocol with accompanying annexes. Technical part of negotiations with the Russian WT/TPR/M/369/Add.1  
 
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  Federation was concluded in 2012. Negotiations with Belarus and Kazakhstan were directly linked 
to negotiations with the Russian Federation and they were conducted in context of EEU. As regards 
further steps, Montenegro is waiting for the reaction from the  Russian Federation.  
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  SAUDI ARABIA, KINGDO M OF  
Questions Regarding the Government Report WT/TPR/G/369  
 
3. Trade Policies  
3.10 Trade in Services  
3.10.3 Banking Sector  
 
In Para 3.99 Page 28:  
 
Such developments were mainly due to the following two factors: the implementation of the EU 
regulation by the foreign parent banks of the Montenegrin subsidiaries, some of which accounted 
for the main share in NPLs in Montenegro, and the implementation of  the three -year strategies and 
annual action plans for NPL reduction starting as of 2014.  
 
Question:  Could you please elaborate more on the three -year strategies and annual action plans 
for NPL that helped to reduce it?  
 
Answer:  
 
A comprehensive strategy for dealing with NPLs in Montenegro is implemented within the project 
"The Podgorica Approach". This strategy is based on two regulatory documents – the Law on the 
Voluntary Financial Restructuring of Debts to Financial Institutions (adopted in 2015 as one  of the 
results of the Project conducted together with the WB FinSAC, and amended in 2017) and the 
Decision on the amendments to the Decision on the minimum standards for managing credit risks 
in the banks (adopted in 2013, with an implementation period fr om January 2014).  
 
First significant results in NPL reduction have been the result of the efforts of the Central Bank of 
Montenegro (CBCG) to raise the awareness of the need to solve the NPL problem together with 
other measures implemented. Those measures  were aimed at achieving the control over and 
decrease in the aggregate level of NPLs, and as a result the CBCG adopted amendments to the 
Decision on minimum standards for credit risk management in banks ("Official Gazette of 
Montenegro" No. 57/13) committ ing the banks to apply a special treatment to NPLs.  
 
This includes the obligation to develop comprehensive three -year strategies for handling NPLs and 
define annual operational objectives for the reduction of the NPL level, as well as quarterly 
reporting to the Central Bank on the implementation of those objectives. In case of significant 
differences between the actually implemented activities and defined operational objectives, the 
Central Bank requires banks to take additional organizational or other mea sures, which are 
required for the purpose of improving credit risk management.  
 
Apart from the other factors that contributed to the decrease in NPLs, strict application of this 
decision and the Central Bank's permanent supervision over the implementation of the banks' 
defined strategies resulted in a substantial decline in NPLs compared to the period prior to the 
beginning of implementation of the decision.  
 
Questions Regarding the Secretariat  Report WT/TPR/ S/369  
 
Section 1.2.1  
 
In Sec tion 1.2.1, you mentioned that during the review period, Montenegro's annual GDP growth 
ranged from -2.7% (2012) to 3.5% (in 2013), its annual average growth rate for the period 
2012-16 stood at 1.8%, a slowdown compared to the average of 3.4% over the 2001 -11 period.  
 
Question:  How is the Government planning to prevent such a large fluctuation in the GDP growth 
that may occur in future? As mentioned, a big part of this fluctuation is from the external shocks. 
In this matter, is there any plan to entice more foreign direct  investment? If yes, in which sectors 
and why?  
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  Answer:  
 
The fall in economic activity in 2009 is a consequence of the global financial crisis and the decline 
in economic activity in a significant number of countries. Montenegro, as a small and undiversifi ed 
economy, could not avoid the overflow of these movements.  
 
In 2012, the fall was a consequence of the crisis in the Eurozone and the overflow of effects on 
Montenegro. Since the EU is the biggest trading partner of the countries of the region, which ar e 
also the most important trading partners of Montenegro, we have been inevitably affected by 
these events.  
 
Montenegro is constantly improving the business environment in order to maintain and increase 
foreign investments. The ongoing investment cycle has  been strongly influencing the economic 
trends in Montenegro. Major investments relate to investments in infrastructure (highway), 
tourism, energy and agriculture. In 2017 FDI amounted to 11.2% of GDP. Further activities will 
focus on creating more favorab le business environment through elimination of business barriers 
and attracting foreign investments.  
 
Section 1.2.3.2  
 
In Section 1.2.3.2, it is mentioned that during the review period, Montenegro ran persistant annual 
fiscal deficits forcing a policy sh ift in 2017. Following a steady decline to 0.7% of GDP in 2014, 
subsequent fiscal loosening lead to Montenegro's fiscal deficit progressively rising to reach 6% of 
GDP in 2016.  
 
Question 2:  How are you planning to balance between fiscal policy tightening, economic growth 
target and the government debt?  
 
Answer:  
 
One of the priorities of the Government of Montenegro is to establish sustainability of the public 
finances, precisely to reduce de ficit and to set the public debt on a downward trend over the 
medium term. In order to stop adverse fiscal risks, which were a feature of the previous period, 
and to make public finances sustainable, two packages of fiscal consolidation measures have been 
adopted. The Budget Deficit and Public Debt Recovery Plan 2017 –2021, which was adopted along 
with the 2017 Budget, defines the measures for the revenue and expenditure sides of the budget, 
amounting to a total value of 126.9 million euro, or 3.2 % of GDP. I n order for the consolidation 
measures to be significant and achievable in a short period, an additional package of measures 
was designed, which was further worked out in the Fiscal Strategy 2017 –2020 adopted by the 
Parliament of Montenegro in July 2017. T he measures envisaged in the Fiscal Strategy ensure 
additional fiscal adjustment of an amount of 117.0 million euro or 2.8 percent of GDP.  
 
Measures on the revenue and expenditure side of the budget are directly affecting the public 
finances consolidation.  When measures were designed, a balanced distribution of tax burden was 
considered, as well as fairer distribution of social welfare benefits and protection of the most 
vulnerable layers of the society. At the same time, the need for Montenegro to remain c ompetitive 
destination for foreign investments, in terms of level of tax burden, was also taken into account. In 
2017 public finance deficit were in line with Fiscal Strategy 2017 -2020 and in 2018 public finance 
deficit will decrease, with a balance in 201 9 and over 4% of GDP surplus in 2020. Also, in 2020 
public debt will be below 60%.  At the same time, according to preliminary data real GDP growth 
in 2017 were 4,4%, and in period 2018 -2020 we expect average real growth rate around 2,8%.  
 
Section 1.27  
 
You mentioned in Section 1.27 that during the period, Montenegro remained a major importer of 
capital. Inward FDI is not only an additional source of capital, but is also brings with it 
entrepreneurship, management skills, and especially new technology, wh ich contribute to 
improved total factor productivity.  
 
Question 3: Is there any monitoring mechanism for impacts of FDIs on different sectors of 
economy and the local content and knowhow? If yes, can you provide us a short description for it?  
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  In the same section with regard to the source of inward FDI, you mentioned that Norway was the 
biggest investor, accounting for 27% of total approved FDI in 2016, followed by the 
Russian  Federation (7.7%), and Italy (7.4%).  
 
Is there any specific agreement or privileg e for Norway to invest in Montenegro?  
 
How much of FDI is in tourism?  
 
Answer:  
 
The Central Bank of Montenegro, authority responsible for FDI statistics, produces data only in 
respect to countries (not in respect to sectors).  
 
There is no specific agreement or privilege for Norway to invest in Montenegro.  
 
Section 3.1 .3.4 
 
In Section 3.1.3.4, the report mentioned that the value of contracts awarded to foreign suppliers 
covering procurement has increased significantly from €14 million in 2013 to abov e €60 million or 
around 14% of the total contracted value in 2016 (equivalent to roughly 6% of the total number of 
contracts).  
 
Question: How does the increase in contracts for foreign suppliers affect local suppliers and 
efficiency of procurement system?  
 
What are the Government doing to attract foreign suppliers?  
 
Answer:  
 
The presence of foreign bidders contributes to strengthening of market competition as well as to 
the professional and technical development of local bidders, which eventually contributes to the 
development and efficiency, i.e. the quality  of the public procurement system.   
 
By further harmonization of the Public Procurement Law with the EU directives, the state 
additionally promotes transparency and openness of public procureme nt procedures, thus allowing 
foreign bidders access to participation in public procurement procedures.   
 
Section 4.171  
 
In Section 4.1.7.1, the report mentioned that tourism remains one of Montenegro's main economic 
activities and sources of government re venue, as well as serving as a stimulus to other sectors, 
such as agriculture, fisheries and construction.  
 
Question: Are there privileges for foreign investors that government has in this sector? If yes, 
what criteria you apply for these privileges? Do FD Is in these industries get any different 
treatment?  
 
Answer:  
 
Tourism is one of the priorities of the Montenegrin economy, especially taking into account the 
comparative advantages for the development of tourism and the present benefits of tourism and 
related activities for the Montenegrin economy.  
 
According to the Tourism Development Strategy until 2020, the list of priorities in tourism includes 
the need for the expansion of hotel capacities in the context of increasing the quality of existing 
hotels, a nd the construction of new four -and five -star category hotels, as well as the diversification 
of the tourism product through the creation of an additional offer.  
 
Our strategic goal is to attract renowned investors and leading hotel operators that will gua rantee 
the development of a high -quality product. Therefore, the Government of Montenegro supports 
investments in tourism, regardless of being domestic or foreign investors. They are ensured an WT/TPR/M/369/Add.1  
 
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  equal treatment, which means that all existing incentives for investors are equally accessible for 
both. 
 
As the new Law on Tourism and Catering provides for the introduction of a tourism development 
zone and the definition of additional incentives therein, the emphasis will be placed on creating the 
conditions for n ew investments and investors that are essential to Montenegro for its further 
growth in the tourism sector, again regardless of whether domestic or foreign investors are 
involved.  
 
Section 4.8  
 
In section 4.8, Montenegro' s energy production comes from hydro -electricity, coal and fuelwoods. 
To meet domestic demand, it imports around 10% -15% of its energy needs. All petroleum is 
currently imported; all but one of the oil and gas companies operating in Montenegro are privately 
owned. Offshore exploration f or hydrocarbons is in a research phase. The electricity market was 
unbundled and fully opened to competition in 2015.  
 
Question: Can you provide us with nature of ongoing energy projects and how are you planning 
to finance them? How much FDIs in this indus try? 
 
Answer:  
 
Hereby, you can find the procedures for projects in the field of renewable energy sources  
 
Solar Power Plants:  
The construction of solar power plants is possible based on the energy permit. The energy permit 
is issued for the construction of solar power plants with an installed capacity of up to 1 MW, 
located on the surfaces of residential, commercial and / or infr astructure facilities. The issuance of 
energy permits is done on the basis of the annual plan adopted by the Government of Montenegro. 
In addition, the construction of solar power plants is possible on the basis of a contract concluded 
on the basis of the conducted tender procedure.  
 
Photovoltaic technology is used today in Montenegro primarily for production of electrical power in 
areas in which there is no need for developed electric power system. Furthermore, nowadays there 
are more and more users of ele ctric power system who exchange power with electric power 
system, where the photovoltaic panels represent prevailing technology for production of electric 
power. It can be expected that there will be solar power plants on roofs and constructions soon, 
because a favourable environment for investments is created based on redemption price of electric 
power produced by those plants.  
 
There is also a growing interest for construction of solar power plants on the ground, and if 
investors appear, who are intereste d to invest in unallocated land in accordance with sustainable 
economic and energetic development of Montenegro, a public auction may be organized for 
selection of investor who would rent state property under the condition to construct solar power 
plant.   
 
Wind Power Plants:  
On the basis of the conducted tender procedure, two projects for the construction of wind farms 
are currently being implemented. Pursuant to the Law on State Property, land tenure agreements 
have been concluded, and the investor is obl iged to pay rent for the land that is in state 
ownership.  
 
The construction of two wind power plants was planned with installed power of 46 MW and 72 MW 
and annual production of around  260 GWh. Wind power plants are  located at  Možura and Krnovo. 
Total inve stments for realization of these projects  are around  229 million €.  
 
Incentive rates for electricity produced by wind power is calculated according to the tariff system, 
amounting to 9.60 c€/kWh.  
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  WF Krnovo  
 
Montenegro concluded the Lease of a Ground and C onstruction of the Wind Farm at the site 
Krnovo (hereinafter referred to as Lease) with the consortium "MHI -IVICOM Consulting GmbH" 
whose members are "Mitsubishi Heavy Industries" from Japan and "Ivicom Consulting" GmbH from 
Austria on 5th August 2010. Ori ginally, the construction of wind farm with installed capacity up to 
50 MW was planned, but bearing in mind that the Lease gave the opportunity to increase the 
installed capacity for 22 MW, the consortium "MHI -IVICOM Consulting GmbH", after additional 
analysis, got the consent for the connection of wind farm Krnovo (hereinafter referred to as WF 
Krnovo) of the  total installed capacity of 72 MW. The said Lease states that land is leased for a 
period of 20 years, extendable to a maximum of 5 years.  
 
According to Annex 1 of the Lease of a Ground and Construction of the Wind Farm at the site 
Krnovo, which was signed by the parties on 26th October 2012, the date of the adoption of spatial 
planning documentation includes the date of the issue of innovated  urban -technical conditions. 
Innovated urban -technical conditions for building WF Krnovo were issued on 10 May 2013. 
Annex  1 the Lease of a Ground and Construction of the Wind Farm change member of the 
Consortium, so instead of "MHI", the consortium was jo ined by "Akuo Energy SAS" from France.  
 
The investor prepared project documentation required for issuance of a building permit and got the 
permit on 7  May 2014.  
 
For the purpose of resolving property relations conducted the procedure of expropriation in th e 
territory of municipalities of Nikšić,  Šavnik and Plužine on the basis of which the Annex on 
Expropriation was signed on 23  April 2014. Annex 2 concluded on 17 November 2014 and Annex  3 
on 31  July 2015. Also, the Direct Contract was signed on 6 July 2015 . In order to overcome the 
problem of providing additional financial resources, which is a triple contract between the Security 
Agent, as a representative of the bank, investors and the State of Montenegro and the usual 
practice in project financing. Also,  conclude Annex 4 on 7 May 2017 and Annex 5 on 6 June 2017 
which provide  possibility  for the construction period to be extended by an additional six months on 
7 November 2017 until the investor was obliged to complete the trial work of VE "Krnovo" and 
accompanying facilities and infrastructure.  
 
In May 2017, WF Krnovo launched trial electricity production and for the same issued occupancy 
permit 30  August 2017. The Energy Regulatory Agency was given to the investor on 
2 November  2017 issued a Decision on ac quiring the status of a privileged producer and a license 
for the production of electricity.  
 
WF Možura  
 
Montenegro signed the Lease of a Ground and Construction of the Wind Farm at the site Mozura on 
5 July 2010 with a consortium of "Fersa & Celebic" (hereinafter referred to as the Investor) 
consisted of "Fersa Energias Renovables" SA Spain and "Celebic" LTD Podgorica. The Lease 
provides for the construction of wind farm with installed capacity up to 46 MW, and the lease 
period of 20 years.  
 
In accorda nce with the changes due to change in the transmission line route and the location of TS 
required for the connection of WF Mozura, the Annex 1 of the Lease of a Ground and Construction 
of the Wind Farm at the site Mozura was prepared, which the government accepted at the meeting 
held on 4  October 2012, and signed on 29  January 2013. Annex 1 of the Lease provided that the 
date of the adoption of spatial planning documents includes the date of the issuance of innovated 
urban -technical conditions. Innovated ur ban-technical conditions for the construction of wind 
turbines at the site Mozura were issued on 7  June 2013.  
 
The investor prepared project documentation required for issuance of a building permit and got the 
permit on 15 December 2014.  
 
After the express ed interest in 2015 for the transfer of the Lease  of a Ground and Construction of 
the Wind Farm  to another company and the fulfillment of all the necessary conditions, the text of 
the Transfer Agreement has been harmonized. The aforementioned Agreement whi ch concluded on 
27 October 2015 "Enemalta plc" became the new leaseholder of the Lease Agreement. Pursuant to 
the provisions of the Agreement, the deadline for completing the construction is 33 months, WT/TPR/M/369/Add.1  
 
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  starting from 15  February 2015, i.e. the deadline for completing the construction of the wind farm 
is 15 November 2017.  
 
As the construction is not completed within the stipulated deadline, the investor shall contact with 
the request for extension of the deadline. The Ministry of Economy has taken activities around 
drafting the Annex, which will extend the construction period until the end of this year.  
 
Small Hydro Power Plants:  
 
The construction of small hydropower plants is possible on the basis of a tender procedure that can 
be implemented in accordance wi th the Law on Concessions on the initiative of the Ministry or at 
the initiative of the interested person. Before starting the tender procedure, the watercourses that 
will be the subject of the tender must be covered by the annual plan adopted by the Gover nment 
of Montenegro. Construction of small hydropower plants is possible on the basis of an energy 
permit issued for the construction of facilities for the production of electricity up to 1 MW, without 
the implementation of a tender procedure. The energy p ermit is issued in accordance with the 
Energy Law and the Rulebook on the contents of the request for issuing an energy permit and the 
content of the energy permit register, based on the annual plan adopted by the Government of 
Montenegro.  
 
Awarding of con cession contracts for small hydropower plants   
 
There are three ways of achieving concession rights over small streams rivers:  
 
• By tender;   
• Through initiatives that the investor starts (through tender procedure);   
• Through the issuance of authorizatio ns (Exclusively mini hydro power plants).   
 
For hydropower installed capacity up to 1 MW is necessary to obtain energy permit. If energy 
permits are issued for the construction of power plants with installed capacity up to 1 MW, using 
state resources or la nd, based on the Decision of the Government, with the holder of energy 
permit is signed standard Contract of the concession.  
 
In accordance with decision to optimally valorize available hydro potential in Montenegro, three 
tender procedures and one initiat ive have been conducted for awarding concession contracts for 
usage of hydropower potential for production of electricity in small hydropower plants (hereinafter: 
SHPP).   
 
According to the concluded concession contracts, based on the first and second tender, the 
construction of 41 SHOPs, with completely installed power of around 73,022 MW, with planned 
annual production  of around 246,908 GWh. According to conceptual designs and feasibility studies 
drafted by concessionaires, value of total investments for realization of these projects amounts 
around 101 million €.  
 
Stimulating prices for electricity produced in small hydropower plants shall be calculated according 
to tariff points, in accordance with formulas given in the Tariff system, expressed in u c €/kWh and 
they amount:  
  
• for produced electricity up to 3,0 GWh  /10,44  c€ 
• TS2 for produced electricity from 3,0 GWh to 15,0 GWh  / 7,44 c€ 
• TS3 for produced electricity above 15,0  GWh / 5,04 c€.  
 
Hydro Power Plants on River Morača:   
 
Construction of 4  hydro -power plants with total installed power of 238 MW and an 
average annual generated electric power of 694 GWh   
 
HPP Morača  
 
Regarding the preparation of the project HPP on  river Morača, Government of Montenegro has 
adopted on 18.02.2010 Draft Detailed  Spatial Plan for area of multipurpose accumulations on river 
Morača  and Draft Strategic Environmental Assessment, whose developer was Norwegian WT/TPR/M/369/Add.1  
 
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  consortium COWI,  Oslo. These two documents were prepared based on Basic technical solution 
which envisages cons truction of four hydropower plants with installed power of 238,4  MW and 
average annual production of electricity of 721 GWh, with maximum accumulation level of HPP 
Andrijevo of 285 mnm and  accumulation volume of 250 hm³.  
 
Main Amendments and supplements to  the Draft Detailed Spatial Plan and Draft Strategic 
Environmental Assessment, which were results of public debate are following:  
 
• It has been decided to amend these two documents with Basic technical solution II, which 
envisages construction of four hydropower plants with total installed power of  238.4  MW and 
average annual production of electricity of 616 GWh, with maximum accumulat ion level of 
HPP Andrijevo of 250 mnm and accumulation volume of 100 hm³. This solution has less 
impact on environment and cultural heritage but smaller economic and energetic effects.  
• Drafting of Study of Biodiversity Conservation for the project area h as started. First phase of 
the Study – preparation of the data base has been finalized.  Drafting of the Study is of 
extreme importance from the point of view of protection, conservation and repositioning of 
flora and fauna which could be endangered by the Project.   
• Study of protection and valorisation of cultural heritage in the basin of Morača was prepared, 
including Monastery Morača as the most valuable cultural good in the project area.   
 
Tender for construction of HPP Morača has pronounced as unsucce ssful because the interested 
companies which had purchased tender documents did not submit final offers.   
 
Potential of river Morača  is a natural  wealth of Montenegro, especially in  the situation when we 
have a significant deficit of electricity, but also from the point of safety of power supplying.   
 
In October 2015, Government of Montenegro signed Memorandum of Understanding with Chinese 
company NORINCO International Coorporation Ltd and in December 2015 the MoU was signed with 
Turkish company Bereket En erji. Both of companies have prepared technical proposals for the 
development of HPPs on Moraca river while Chinese company Norinco prepared and submitted to 
the Government of Montenegro Commercial proposal as well, which will be analysed in due time.  
  
Hydro Power Plant on  River  Komarnica:   
  
Investment in two power generators of 168 MW, with annual production of 232 GWh   
  
HPP Komarnica  
  
According to the existing documentation, HPP Komarnica would be frontal HPP and accumulation in 
the basin of river P iva. Location of dam is at the end of backwater of existing accumulation of HPP 
Piva. The construction of concrete arch dam 176 m high. Hydropower plant would be dam toe 
powerhouse with two power generator units with installed power of 168 MW and annual pr oduction 
of 232 GWh. Level of backwater accumulation is limited with the position of town Šavnik 
(816 mnm). Estimated value of the project is around 183 million €.  
 
Construction of HPP Komarnica is undisputable both in spatial and Water Management Plans of  
Montenegro and there are no obstacles for its realisation. There are no industrial capacities, roads, 
business facilities or households which would be endangered, but the accumulation would flood the 
canyon, area which is not inhabited and arid land.   
 
EPCG has conducted a number of survey works in the period from 1990 to 2011, for needs of 
drafting the project documentation. The survey works are being realized in cooperation with 
Electric Power Industry of Serbia (51 : 49% - investment ratio) and by now i t was spent around 
4 million €. Survey works have been finalized, and Elaborate on survey works is currently under 
preparation. According to the existing project documentation, the planned period for construction 
of this facility is 7 years.  
 
In the period  from 2008 – March 2009, Pre -Feasibility Study was prepared and its results indicate 
that the project is technically and economically justified.   
 
In February 2018, Elektroprivreda Crne Gore signed, with a group of contractors - Institut za 
vodoprivredu J aroslav Černi A.D. and Energoprojekt Hidroinženjering A.D – a Contract on WT/TPR/M/369/Add.1  
 
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  development of the Preliminary Design with a Feasibility Study and the Environmental Impact 
Assessment Study for hydro -power plant Komarnica. Contract value exceeds €1.6M while the 
deadline for development of the Preliminary Design and supporting documentation would be 
15 months.  
 
Submarine Cable:   
 
Construction of submarine cable with energy of 1.000 MW capacity between Italy and 
Montenegro   
  
Construction of an undersea direct curre nt transmission cable with capacity of 1,000MW between 
Italy and Montenegro, which is an investment worth over 758 million euros, which is an obligation 
of Terna, and according to the information used by Terna - the value of the investment is higher, 
i.e. about 1 billion EUR;  
 
Construction of 400 KV substation at the Montenegrin coast with connection transmission lines and 
transmission lines from Montenegrin coast to Pljevlja which is an investment worth around 
105 million euros and represents a commitment of CGES and construction of 400 KV transmission 
line with Serbia and/or Bosnia and Herzegovina. Expected dates for the project implementation 
and beginning of the work of infrastructure is 2016.  
 
For the Montenegrin energy sector, the project of constructi on of an undersea cable for connection 
of electricity systems of Montenegro and Italy is particularly important. This project is important 
not only as an energy connection between Montenegro and Italy, but also as an energy connection 
between the countries  of the Western Balkans and the European Union, as well as with regard to 
the security of energy supply and the development of the region as a whole.   
 
The Government of Montenegro and the Government of the Republic of Italy, in February 2010, 
concluded th e Agreement between Montenegro and the Republic of Italy on the construction of 
undersea power interconnection between the transmission networks of Montenegro and Italy with 
the implementation of the strategic partnership of the transmission system.   
 
Through the aforementioned procedure of the emission of shares, Italian company Terna became 
the owner of 22% of the share capital of Montenegro Transmission Company (CGES), while the 
State of Montenegro remains the owner of 55% of the share capital. In th is way CGES was 
recapitalized by Terna and Terna has become a strategic partner of the Government and CGES in 
the realization project of undersea cable and infrastructure in Montenegro.  
 
Expected project benefits:  
 
• Obtaining, without investment in unders ea cable, 20% of capacity and revenue from the 
exploitation of the cable  which can be estimated at least $10 million annually;  
 
• Getting significantly better, stronger transmission network and forming a ring of 400kV 
network;  
 
• Increased security of elec tricity supply to major tourist centers in the Montenegrin coast, 
such as Herceg Novi, Tivat, Kotor andBudva;  
 
• Creating conditions for effective and reliable connection to the transmission network of new 
generating units northern from Niksic;  
 
• Creating  infrastructure for reliable and quality supply of Zabljak and Niksic municipality as a 
precondition for  their development;  
 
• Creating infrastructure for reliable evacuation of electricity from the future production 
facilities in the municipality of Pljev lja, PP Maoce, PPPljevlja 2;  
 
• Montenegro is positioned as an important energy hub in the region.  
 
The project of connecting Montenegro and Italy by submarine DC cable predicts:  
 WT/TPR/M/369/Add.1  
 
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  ➢ construction of an  submarine DC (direct current) cable with capacity of 1.000MW between 
Italy and Montenegro with its converter stations (investment worth over 758 million euros and it's 
an obligation of Terna);  
 
➢ construction of the substation 400/110/35 kV Lastva (TS Las tva), 400kV transmission line 
Lastva - Čevo - Pljevlja and the introduction of the existing 400 kV transmission line Podgorica - 
Trebinje in TS Lastva (investment worth   over 100 million euros and it's an obligation of CGES);  
 
➢ construction  of 400 KV tran smission lines to Serbia and/or Bosnia and Herzegovina (for the 
realization of this investment the Government of Montenegro has received a grant from 
the European Union in the amount of 25 million euros, because it represents a part of 
Trans -Balkan corrido r, section Montenegro).   
 
The cable is laid in the sea and currently CGES is working on the construction of land 
infrastructures. Completion of the SS Lastva, OHL Lastva -Pljevlja (section Lastva -Čevo and 
diversion of the existing 400 kV OHL Podgorica -Trebinje in SS Lastva) is envisaged in 2018, while 
completion of the construction of  OHL Lastva -Pljevlja, (section Čevo -Pljevlja) is undergoing.  
 
And finally, the offshore exploration for hydrocarbons  is in a research phase. This project will 
be financed f rom foreign investment, i.e. invested by the concessionaire in 100% amount.  
 
Section 4.1.5.3  
 
In Section 4.1.5.3, the report mentioned that State ownership of companies operating in the 
transport sector remains significant in the maritime, rail and air sec tors, although the Port of 
Adria, the main commercial port, was privatized in 2013.  
 
Question: How do you evaluate the privatization experience in the transportation sector? Do you 
have any impact analysis for the Andria Port? Are you planning to privatize  more projects in this 
sector?  
 WT/TPR/M/369/Add.1  
 
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  THAILAND  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
Para 3.112  
 
Question  
It states in this paragraph that "they also exempt agreements relating to research and 
development, some vertical agreements, distribution of spare parts and servicing of motor 
vehicles, insurance, technology transfer, and road, rail and inland waterways and maritime traffic 
(Block Exemption Regulations)"  
 
Please provide more information on exempt agreements relating to research and developme nt, 
some vertical agreements, distribution of spare parts and servicing of motor vehicles, insurance, 
technology transfer, and road, rail and inland waterways and maritime traffic.  
 
Answer:  
 
There is a general Block Exemption Regulation providing for safe -harbor for all vertical agreements 
and sector specific Block Exemption Regulations ( BER) as noted above. Outside of the scope of 
BER might be vertical agreements whereby any of the parties has more than 30% market share 
(MS), i.e. in specific sectors (e.g.  insurance) more than 20%, which cannot be exempted under 
the BER. Still, the Law provides for individual exemption procedure (" comfort letter ", as known 
before EU Reg. 1/2003) under which specific conditions need to be fulfilled in order to secure legal 
enforcement of an agreement. In this respect, the Law provides for the self -assessment 
opportunity and further on the ex -post control upon request for individual exemption of restrictive 
vertical agreement. RPM practice (retail price  maintenance ), including other hard core restrictions 
(non-compete , passive sales restrictions etc.) may only be exempted subject to individual 
exemption agreement and on the basis of meeting four cumulative criteria (as referred to under 
TFEU Art. 101(3)).  
 
Para 3.1 14  
 
Question  
It states in this paragraph that "Mergers and acquisitions as well as joint ventures are subject to 
ex-ante control,…"  
 
Does MAPC apply any threshold, criteria, or other factors as an instrument to consider Mergers and 
Acquisition filing?  
 
Answer:  
 
In order for MAPC to assess fulfilment of threshold, all market participants ( undertakings) have to 
satisfy one of the following preconditions as prescribed by Article 52 of the Law on Protection of 
Competition:  
 
1) conclusion of the agreement or co ntract;  
2) announcement of the public call, or bid or closing of the public bid, or  
3) the acquisition of control.  
 
If one of the actions from Article 52 occurs the MAPC assesses the following thresholds (Article 50 
of the Law):  
 
1)  the combined aggregate annual turnover of at least two parties to the concentration 
achieved in the market of Montenegro exceeds 5 million euros in the preceding financial 
year; or  
 
2)  the combined aggregate annual worldwide turnover of the parties to the concentration 
achieved in the preceding financial year exceeds 20 million euros, if at least one party to 
the concentration achieved one million euros in the territory of Montenegro in the same 
period.  
 WT/TPR/M/369/Add.1  
 
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  Consequently, if the conditions from Article 50 are fulfilled, undertakings are obli ged to submit to 
the MAPC a Request for issuing approval for the implementation of the concentration (merger 
notification).  
 
Para 3.128 -3.132  
 
Question  
Please provide more details on the legislation or regulation about privatization of State -owned 
enterpri ses; specifically the objective and strategic direction related to how State -owned 
enterprises are chosen for privatization or kept as state enterprises in order to conduct social and 
welfare - related mission.  
 
Answer:  
 
Privatization process in Montenegro is implemented in accordance with the Montenegrin Economic 
Policy, whose main objectives are reflected in the higher economic growth, ensuring new jobs and 
employment, increasing investments and export and creating the b asis for higher income and 
growth of citizens' standard of living, together with the increase of competitiveness of the 
Montenegrin economy. Privatization process is in its final stage. Since the beginning of 1999, more 
than 90% of the state -owned companie s or companies with the majority of the state -owned capital 
have been privatized, including the 100% of privatization in the banking sector, 
telecommunications and oil distribution. Most of the companies that have not been privatized for 
the time being are  of the strategic relevance for the Montenegrin economy in the energy, transport 
and tourism sectors.   
 
The Government of Montenegro is the main institution in charge of privatization. The Law on 
Privatization of the Economy defines the models for privati zation, the institutional framework for 
privatization process and the role of the state in formulating the privatization policy, as well as the 
conditions and procedures of the process, etc.  
 
The aforementioned Law has established an institution responsib le for privatization i.e. the 
Privatization Council (now Privatization and Capital Investment Council), which manages, controls 
and implements the privatization process, as well as supervises if privatization is carried out in 
accordance with the Privatiza tion Plans. Each year, the Council announces and publishes in the 
Official Gazette the Privatization Plan that lays out the companies to be privatized, the methods of 
their privatization, certain deadlines and how foreign investors can participate in the p rocess. The 
Privatization Plan is prepared on the basis of proposals of ministries, State funds, as well as tender 
committees of the Council. Each ministry or State fund submits to the Council a list of companies 
with a proposal of the privatization method . The Council examines the proposals and makes a 
decision which companies will be included for the privatization. Priority is given to companies for 
which the investors have already expressed interest for their privatization, and to companies 
assessed to b e privatized through the tender procedure in the current year.  
 
In addition, the Government's regulation defines the manner and the procedure of sale of 
companies through public auction (in accordance with the Decree on Sale of Shares and Assets 
through Pu blic Auction), public tender (in accordance with the Decree on Sale of Shares and 
Company Assets by Public Tender) and public offer on the stock exchange.  
 
Having in mind the success of public -private partnership (PPP) projects in EU member states and 
the lack of the budgetary funds for infrastructure development, the Government of Montenegro 
has decided to use the PPP model more intensively through the privatizations process. Therefore, 
the Government has opened all sectors to the PPP model (including heal thcare and education, 
ports, energy, tourism and the valorizations of attractive locations in the costal and northern areas 
of Montenegro).  
 
Considering that public enterprises (Water Supply Company, Health Care, public enterprises for 
construction and ma intenance of road infrastructure, Utility Enterprise, primary and secondary 
education and the University of Montenegro) ensure social welfare, they are still not subject to 
privatization.  
 WT/TPR/M/369/Add.1  
 
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  PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
2.6 Investment Policy  
 
Para 2.50   
 
Question  
 
Do those nine local business zones exist or they will be established in the future? Please also 
provide more details of targeted industries and incentives.  
 
Answer:  
 
1) Business zones exist in 9 municipalities, whereby each muni cipality has defined several 
locations for their establishment. The Decree on Business Zones defines that local 
self-governments have to harmonize their respective local legislation for business zones 
of local importance with the provisions of this Decree.  Consequently, by 21 June 2018 all 
local governments that have business zones in their territories must act on this basis, so 
that the business zones remain functional and usable.  
 
2) After the above date we will have exact data on the number of business zone s and their 
equipment and functionality. Monitoring process is in progress.  
 
3) Business zones are targeted for manufacturing industry and some form of services. 
Beneficiaries are exempted from paying contributions to salaries and personal income 
tax for a period of 5 years from the date of employment of persons in the business zone. 
Also, additional facilities at the local level are provided.  
  
3.6.1 Agriculture  
 
Para 3.37  
 
Question  
Regarding the project of supporting investments in agriculture farms, the  so-call MIDAS Project, 
are both local investors and foreign investors (whether in the form of joint -venture or other forms 
of corporations) eligible to the government's supports?  
 
Answer :  
 
Through public calls for support under the MIDAS, recipients of g rant support can be natural 
persons (citizens of Montenegro with place of residence in Montenegro) and/or companies 
registered in Montenegro (registered in the Central Registry of the Commercial Subjects).  
 
3.6.3 Forestry  
 
Para 3.49 -3.50  
 
Question  
Please  kindly provide details of new concept of the Action Plan for forestry with the reform 
organization and system of forest management. Would this reform include private entities and 
enhance international corporations?  
 
Answer : 
 
Given that the objectives of t he reform are better valorization of forest resources and increased 
forest management efficiency, the essence of the new concept is that instead of selling the wood in 
the standing volume, the current practice goes to the system of selling timber assortmen ts in 
forest stores (lagers), with the introduction of the private sector in cutting trees and extraction of 
wood assortments on the lagers.  
 
Reforms will lead to higher engagement of the private sector in the service sector through 
performing forest -related activities. This will increase the interest of international forest WT/TPR/M/369/Add.1  
 
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  management corporations, as well as further development of the wood processing industry in 
Montenegro.  
 
3.10.5 Electronic communications  
 
Para. 3.107  
 
Question  
As this paragraph states  that The Law created conditions for further development of electronic 
communication networks and services, does the government have an intention to liberalize the 
regime under electronic communications for foreign services providers to have equal right as  local 
services providers in near future?  
 
Answer:  
 
Foreign services providers have equal right as local services providers in the market electronic 
communications.  
 
Requirements for competitors entering the telecommunications market are provided for in t he Law 
on Electronic Communication.  
 
Any legal or natural person, prior to the inception of use, and/or the operator, prior to the 
termination or change in the regime of use of public communications networks or prior to the 
provision of publicly available electronic communications services, has to submit a written 
application to the Agency on Electronic Communications and Postal Services.  
 
The application includes:  
1) for natural person – name and surname, unique personal identification number and address 
or for a foreign natural person - the name and surname, date and place of birth, passport 
issuing country or identity card and number of such document;  
2) for legal entity – name of company, seat, statistical and registration number, account 
number and na me and surname of the representative;  
3) brief description of public electronic communications networks and/or publicly available 
electronic communications services, which shows network and/or service characteristics;  
4) anticipated date of inception, cha nge or termination of regime of usage of public electronic 
communications networks or provision of publicly available communications services.  
 
With the application, the evidence has to be submitted that the applicant is registered for carrying 
out the act ivity of electronic communications, and of course in line with the Company Law in the 
Central Registry of Business Entity.  
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  TURKEY  
THE SECRETARIAT REPORT  
 
2.3 Trade Agreements and Arrangements, pg. 37, 2.23   
 
It is stated in the Secretariat Report that "Montenegro is one of the founding members of CEFTA. 
The Agreement was signed in December 2006 and entered into force in May 2007. As at 
end-August 2017, parties of the Agreement were: Albania, Bosnia and Herzegovina, the Republic 
of Moldova, Montenegro, S erbia, The former Yugoslav Republic of Macedonia, and Kosovo. In 
2016, according to UNCOMTRADE data, Montenegro's merchandise trade with CEFTA members 
constituted 29.2% of total imports and 38.4% of total exports. These figures do not take into 
account tra de between Montenegro and Kosovo, which the authorities estimate to account for 
0.2% of imports and 5.9% of exports. The Agreement covers goods only and, inter alia, contains 
provisions relating to competition as well as broadening cooperation in services,  investment, 
government procurement, and protection of intellectual property rights. The Agreement has not 
yet been subject to consideration in the WTO's Committee on Regional Trade Agreements (CRTA)."  
 
Question:  Could Montenegro elaborate on its approach towards a full and total economic 
integration model in the Balkans? Is it possible to go beyond CEFTA regarding economic 
integration efforts in the Balkans?  
 
Answer:  
 
As far as Montenegro is concerned CEFTA remai ns as the main legal framework with respect to 
economic integration model in the Balkans.  
 
3. Trade Policies And Practices By Measure, Table 3.7 Main domestic support measures, 
footnote "a" 2012 -18, p.7 -75 
 
It is stated in the Secretariat Report that "Inve stors implementing investment projects ensuring 
job creation and contributing to economic and regional development of Montenegro may be 
beneficiaries of financial incentives awarded by a Decision of the Government of Montenegro on 
the allocation of funds f or direct investment promotion."  
 
Question:  Could Montenegro provide detailed information about how contribution to the economic 
and regional development is assessed? (i.e. whether there is any specific criteria and condition)  
 
Answer:  
 
According to the D ecree on Dırect Investment Incentıves (OG MNE No 80/ 2015) the criteria for 
the award of investment incentives are the following:  
 
• References of the business entity  
• Extent of participation of other business entities from Montenegro during and after the  
completion of the investment project  
• Value of the investment project  
• Investment project impacts related to research and development  
• Investment project impacts on human resources  
• Investment project impacts on the environment  
• Volume of internation al turnover  
• Economic effects of the investment project  
• Investment project impacts on the regional development  
• Letter of intent from the local self -government unit  
 
Criteria Economic effects of Investment Project is defined in the article  19 of the Decree  
 
Economic effects of the Investment Project shall be scored according to the data contained in the 
business plan and projected balance sheet and income statement, as follows:  
 WT/TPR/M/369/Add.1  
 
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  1) for the indicator of cost -effectiveness which represents the total revenues to total expenses 
ratio for the period of six years from the beginning of the investment project 
implementation, amounting to:  
a) over 1.5 – 10 points,  
b) over 1 up to 1.5 – 5 points,  
c) up to 1 – no points;  
2) for net profit ratio which represent s the ratio of average net income in an investment cycle 
for the period of six years from the beginning of the investment project implementation to 
total investment, amounting to:  
a) over 20% – 10 points,  
b) over 5% up to 20% – 5 points,  
c) up to 5% – no points; and  
3) for the investment payback period, which represents the ratio of total investment to average 
net profit in the period of an investment cycle, amounting to:  
a) up to five years – 10 points,  
b) from five to ten years – 5 points,  
c) over ten yea rs – no points.  
 
On the basis of the criteria from paragraph 1, items 1, 2 and 3 above, the Business Entity may be 
allocated up to maximum 30 points.  
 
If investments are implemented in the underdeveloped regions of Montenegro such project will be 
awarded w ith additional points as follows:  
 
Criteria Investment Project impact on regional development is defined in the Article 20 
of the Decree  
 
Investment Project impacts on regional development shall be scored according to the region in 
which the Investment Project will be implemented, as follows:  
1) for the northern region and central region, excluding the Capital City of Podgorica – 
10 points; and  
2) for the coastal region and the Capital City of Podgorica – 5 points. English version of the 
Decree is availa ble at:  
 http://www.mek.gov.me/en/WTO/LIBRARY/ep_actual_legislation/Investment_regime?alpha
bet=lat   
 
3.3 Measures Affecting Production and Trade, pg. 37, 3.101   
 
It is stated in the Secretariat Report that "During the same period, Montenegro introduced more 
stringent veterinary control and check measures to prevent the introduction and spread of blue 
tongue disease, foot and mouth disease, classical swine fever, and other animal contagious 
diseases. The 2017 annual budget for obligatory measures for the protection of animal health 
stood at €1.38 million"  
 
Question:  Could Montenegro provide detailed information about measures taken to prevent the 
introduction and spread of blue tongue disease, foot and mouth disease, classical swine fever, and 
other animal contagious diseases?  
 
Answer:  
 
The Veterinary Law (OG MN 30/12, 48/15, 52/16) prescribes the Special preventive measures for 
protection against infec tious animal diseases (Article 55) and also measures to combat infectious 
of animal diseases (Article 59).  
 
Moreover, in accordance with the Veterinary Law, the Program on required measures for health 
protection of animals from infectious diseases is adopt ed every year.  
 
The Program of mandatory animal health protection measures lays down specific programs, 
including the programs on surveillance, monitoring, vaccination against certain diseases by age 
groups, including the costs necessary for its implement ation.  
 WT/TPR/M/369/Add.1  
 
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  In line with this program, the obligatory vaccinations of cattle and sheep against Blue tongue 
disease is being implemented since 2017, in accordance with the Regulation on measures for 
prevent introduction, detection, suppression and eradication o f infectious diseases Blue tongue 
(OG MN 3/2015), which prescribes measures in case of doubt or appearance of this disease.  
 
Since 2006, Montenegro has had the OIE status of a country free from foot -and-mouth disease 
without vaccination. This disease is re gulated by the Regulation on measures for preventing 
introduction, detection, suppression and eradication of infectious foot -and-mouth diseases (OG MN 
38/2015) and the Crisis management plan in case of presence of foot -and-mouth disease (OG MN 
38/2015) - Contingency Plan.  
 
In order to maintain the free status from foot -and-mouth disease, the annual program of 
mandatory animal health protection measures lays down the implementation of monitoring for this 
disease on the territory of Montenegro. Under the prog ram, by random sampling, 150 samples of 
cattle and 150 samples of sheep are tested. All tests performed so far were negative, which, along 
with the absence of any clinical suspicion confirms that the country is still free from this disease.  
 
The last case of classical swine fever in Montenegro was recorded in 2007. Vaccination against this 
disease in Montenegro is carried out, as well as   control of the immune status of the domestic pigs 
and pigs from imports. The plan is to start with the policy of non -vaccination of pigs in2020. The 
Rulebook on the measures for the prevention, detection, suppression and eradication of classical 
pig fever (OG MN 18/2014, 84/2017) and Crisis management plan in case of presence of classical 
swine fever (OG MN 44/2015) are in  force (Contingency Plan).  
 
Moreover, other regulations governing measures for prevention of their occurrence, detection, 
control and eradication, the method of sampling and diagnostic examination and the scope of the 
infected and endangered area, depending on the disease (Lumpy skin  disease, Avian influenza, 
African swine fever, Swine vesicular disease,...) are also in force.  
 
Control and eradication of highly dangerous infectious diseases, depending on the risk assessment, 
is organized and implemented based on the plans for manageme nt of crises concerning specific 
infectious diseases (the contingency plan) adopted by the Government, while the Administration 
competent for the veterinary prepares technical bases for management of crises (contingency 
plans).  
 
The contingency plans inclu de in particular the organization and manner of implementation of 
measures for control of the infectious disease concerned, the funds, equipment and human 
resources necessary, as well as the procedure for control of implementation of the plan.  
 
THE GOVERNM ENT REPORT  
 
2.5 Privatization, pg. 11, 2.45   
 
It is stated in the Government Report that "Having in mind the success of public -private 
partnership (PPP) projects in EU member states and the lack of the budgetary funds for 
infrastructure development, the G overnment of Montenegro has decided to use the PPP model 
more intensively through the privatizations process. Therefore, the Government has opened all 
sectors to the PPP model (including healthcare and education, ports, energy, tourism and the 
valorization s of attractive locations in the costal and northern areas of Montenegro)."  
 
Question:  Could Montenegro provide detailed information about PPP projects on which 
cooperation can be developed and opportunities presented especially in health sector during 
privatization process?  
 
Answer:  
 
Public -private partnership in Montenegro is currently regulated by the Law on Participation of 
Private Sector for the delivery of public services and the Law on Concessions.  
 
PPP has a special significance according to the Law on Foreign Investments, on the basis of which 
a foreign person can establish company or invest in Montenegro under the same conditions as a 
domestic person.  WT/TPR/M/369/Add.1  
 
- 73 - 
 
   
The Law on Public Private Partnership is unde r preparationand its adoption is planned by the end 
of June 2018. It is expected that this Law will regulate the conditions, method and procedure for 
approving projects as a public -private partnership, the rights and obligations of public and private 
partn ers, the content and procedure for concluding a PPP contract, public -private partnership 
forms, selection procedures of the best bidder, and other issues of relevance to realization of the 
public -private partnership project.   
 
In the last few years, the nu mber of concluded PPP contracts which will be realized according to 
this model, has significantly increased.  
 
The final decision for starting a project is exclusively under the jurisdiction of the Government 
based on the  assessments and opinions of indepe ndent experts within the sustainability study.  
 
In recent years, the Government of Montenegro has opened all sectors for the PPP model, 
including health and education, ports and railways, energy, tourism and valorization of attractive 
places on the Montene grin coastline and north region of the country .  
 
Valorisation of tourist sites : The privatization plan for 2018 envisages  the valorisation of 
several tourist sites through a public -private partnership,  such as : Ada Bojana, Ulcinj Municipality - 
tourism va lorisation of the location through development, construction, financing and management 
of exclusive tourism complex and long -term lease of the Ada Island; Masline Valley - "Utjeha" for 
Odrač Bay, Bušat, Bar Municipality; the location between Njivice and Su torina mouth, Herceg Novi 
Municipality; Location  "Donja Arza", Herceg Novi Municipality;  Location "Kabala for", Herceg Novi 
Municipality; The Project of tourism valorisation of the location „Mrkovi – Bijela Stijena", Luštica,  
Herceg Novi Municipality;The  Project of tourist complex Ecolodge Lovćen, National Park Lovćen, 
Cetinje Municipality;  Ski Resort "Savin kuk", Žabljak Municipality; Tourism valorisation of the 
locations included in the Special Purpose Spatial Plan "Bjelasica and Komovi" – Cmiljača and 
Žarski, Mojkovac Municipality and Bijelo Polje Municipality.               . 
 
The most important projects implemented in the previous period through the model of public -
private partnership are the provision of long -term lease of locations on the Lustica Peninsula 
belonging to the municipalities of Herceg Novi and Tivat, the long -term lease of the Orijen 
battalion barracks in Kumbor and the long -term lease of Lastavica Island with fortress "Mamula".  
 
An integral part of the PPP arrangement is awarding conc essions, particularly in energy sector and 
waste management, such as:  Construction of Small Hydro Power Plants (MHE), 
Construction of hydroelectric power plants on Morača, Wind farms, solar power plants, 
Waste management projects…etc…  
 
Travel infrastruct ure: Regarding the road infrastructure, Montenegro would like to ensure 
integration of the Montenegrin transport network into the roads of neighboring countries. 
Therefore, the construction of the Bar -Boljare highway and the Adriatic Highway through 
Montene gro is an investment of the strategic importance.  
 
Health services:  The Government of Montenegro has recognized the need for initiation of 
investors and large hospital chains through the projects of joint investments in further 
development of the health sy stem in Montenegro, which will contribute to development and 
improvement of providing medical services within the country, especially through professional 
reputation, knowledge, experience and resources. The main goal of these projects will be to build 
new medical facilities, where the state's role is to ensure the land in certain locations with the 
accompanying communal infrastructure.  
 
Local level: The number of PPPs at the local level in Montenegro depends mainly on the size and 
the budget of the municipa lity. All Montenegrin municipalities have a strong interest in projects 
under the PPP model. However, there is a large number of municipalities where PPP projects have 
not been realized so far.  
 WT/TPR/M/369/Add.1  
 
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  UKRAINE  
PART I: QUESTIONS REGARDING THE Secretariat Report ( WT/TPR/S/369)  
 
3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.5  Import prohibitions, restrictions, and licensing  
3.1.5.2  Import approval and restrictions  
 
Page 60 (Para 3.38)  
 
The Report notes that "The decision fees for import licences for medicines and medical devices are 
based on the total import value, and those relating to the import/export/transit of drugs and 
psychotropic substances in line with the international conventi ons amount to 1% of the total 
import/export/transit value rather than the service cost. According to the authorities, these fees 
are based on the merchandise value because the cost of the evaluation and inspection service 
depends on the import value, i.e. a higher value usually means that there are more medicines to 
control."  
 
Questions:  
 
1. Would Montenegro, please, explain the rationale behind the policy to base the fees for import 
licences for medicines, medical devices, drugs and psychotropic substanc es on the total import 
value?  
 
Answer:  
Fees are based on the merchandise value because the service also depends on the value of import 
i.e. when the value of import is higher it means usually that there are more medicines, medical 
devices on the import licences that need to be evaluated and checked.  
 
2. Could Montenegro kindly give some more information concerning the evaluation and inspection 
services, which are actually rendered depending on the merchandise value?  
 
Answer:  
For every medicine and/or med ical device in the process of issuing import authorization all of the 
documentation including for example GMP certificates, Certificates of Analysis, Labelling, Justified 
request of the health institution, i.e. opinion of medical specialist on the need for  import of the 
particular medicine… must be checked. So, the more products there are on an application 
(medicines or medical devices) the more resources (time and issuing personnel) are necessary. 
Also worth of consideration is the fact that at the time th is tariff system was introduced, 
Montenegro had few registered medicines and almost the entirety of the market relied on import 
authorizations. At the time of Agency's inception in 2008, the import fee was fixed, regardless of 
merchandise value and number of different medicines. Importers planned their imports irrationally, 
often vastly overestimating the amounts of medicines being imported as well as listing medicines 
they are unlikely to import on the applications. This was a direct consequence of the fac t that 
importation fee wasn't dependent on the number and amount of medicines listed on the 
application. This was very taxing on the Agency's resources and also complicated analyses of 
Montenegrin market from the aspect of issued import authorization becau se the data wasn't 
relevant. After a tariff system with import authorization fees based on the total import value was 
introduced, the importers' applications for import authorizations started reflecting realistic needs 
(in regard to types and amounts of me dicines and medical devices).  
 
Montenegro is fully aware of the undertaken commitment to ensure that all fees and charges for 
services applied in connection with importation and exportation would be applied in conformity 
with the WTO Agreement, including A rticles VIII and X of the GATT 1994 and confirms that there 
are no other services rendered depending on the merchandise value.  
 
3. What authorities are responsible for application of such fees and for provision of the evaluation 
and inspection services?  
 
Answer:  
Agency for Medicines and Medical Devices.  WT/TPR/M/369/Add.1  
 
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4. Ukraine would also appreciate if Montenegro could clarify the international conventions, in line 
with which the decision concerning mentioned fees was made.  
 
Answer:  
There are no international conventions regarding medicines and medical devices. Similar practice 
exists in one neighbouring country (Bosnia and Herzegovina). For drugs and precursors there are 
three  international conventions:  
- Single Convention on Narcoti c Drugs, 1961,  
- Convention on Psychotropic Substances of 1971  
- United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic 
Substances, 1988.  
 
5. Does Montenegro have any plans to change such policy, ensuring that all fees for ser vices 
connected with importation are applied in conformity with provisions of Article VIII of the GATT 
1994?  
 
Answer:  
Yes. After the new Law on medicines is adopted (which is planned during 2018), the price list will 
be changed. This change will include a new fixed import tariff system, i.e. the import fee will be 
fixed, regardless of merchandise value and number of different medicines.  
 
3.2  Measures Directly Affecting Exports   
3.2.4  Export support and promotion  
3.2.4.2  Duty and tax concessions  
 
Page 6 3 (Para 3.51)  
 
Under the Report "Montenegro allows for the reimbursement of customs duties and VAT on inputs 
used in the manufacture of export goods. The Customs Law provides for the 
repayment/reimbursement to the exporter of the amount of customs duties paid on inputs used for 
exported goods, or their write -off (repayment system). Exports are VAT -free. Based on input 
invoices, the amount of VAT paid on inputs used for export items is refunded to taxpayers who 
mainly export goods (income from abroad more t han 51% of total revenues) and indicate a 
surplus of input VAT in more than three successive VAT returns, within 30 days from the date of 
filing of the VAT return (Sections 3.3.1.1.2 and 3.3.1.2). No data from 2012 onwards on the 
amounts disbursed and the export value by main product category involved were available from 
the authorities."  
 
Question:  
 
6. Ukraine would appreciate if Montenegro could elaborate on its abovementioned measures 
regarding, if any, the top imported agricultural products incorporat ed in products that were 
exported, the export value of such products, the export destinations for those products and the 
amount of the refund of duties, taxes or other fees gathered at importation under the regime of 
duty and tax concessions during the las t three years?  
 
Answer:  
We have no available data.  
 
4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1  Agriculture  
4.1.1.3  Support mechanisms  
 
Page 122 (Para 4.25)  
 
According to the Report "Credit to farmers is available through commercial banks, microfinance 
institutions and the Investment Development Fund (IDF) (Section 3.3.1). The IDF provides both 
direct credit and loans through the commercial banks. Loans are for  up to €1,000,000; grace 
periods are for 4  years; and repayment periods thereafter are for up to 8 years. Interest rates WT/TPR/M/369/Add.1  
 
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  range from 3.5% to 5% annually. Apparently, commercial banks typically have high interest rates 
and unfavourable conditions."  
 
Question :  
 
7. Would Montenegro kindly explain how such support as direct credit and loans provided for 
farmers at lower interest rates will be presented by Montenegro in its Table DS:1 notifications for 
the calendar years starting from 2015?  
 
Answer:  
In order to  stimulate the development of small and medium -sized enterprises the Government of 
Montenegro provides development loans, which are given under more favourable terms than 
commercial loans, with an average interest rate of 3%. Loans are financed by the Euro pean 
Investment Bank (EIB) funds. IRF is the institution responsible for granting loans in accordance 
with the defined conditions. These kinds of credits are available to all branches of the economy, 
not only for agricultural activity. Therefore, agricultu ral producers do not have the exclusive right 
to use these loans, but they have the right to compete and to get loans under the same conditions 
as users from other economic sectors, within the defined credit line. Credit beneficiaries can be 
companies and entrepreneurs and all forms of organization provided for by the Law. The right to 
credit does not exist, but IDF MNE, on the basis of each individual request, makes a special 
decision. Agricultural production is not particularly supported, nor has exclusiv ely privileged loans, 
but is an integral part of the lending program.  
 
Activities on the allocation of more favourable loans, for all users, will be notified in accordance 
with the obligations provided for in Article 25 of the Agreement on Subsidies and Co untervailing 
Measures.  
 
4.1.2  Forestry  
 
Page 123 (Para 4.31)  
 
The Report states that "In mid -2017, Montenegro imposed a ban on exports of certain wood items 
from state forests (26 tariff lines in HS 44011100 and HS 44011200 (fuel wood) and HS 4403 
(wood in the rough)) and imposed temporary export licensing on these items when exported from 
private forests (OG No. 23/2017, 7 April 2017). The rationale for this measure was to control 
exports in order to ensure adequate supply for the domestic market, since a prohibition on logging 
in Albania in 2016 had resulted in a surge of exports to that country. The export licensing regime 
is in place until 1 May 2019, with licences being granted by the MARD upon request. They are valid 
for 30 days."  
 
Questions:   
 
8. Co uld Montenegro kindly elaborate more on the policy objectives to prohibit exports of some 
kinds of wood and wood products and to impose export licensing  temporarily?  
 
Answer:  
Montenegro has introduced export licenses on raw materials or wood of a lower lev el of 
processing, in order to:  
-  preserve the stability of the supply of raw materials to the processing sector;  
-  ensure the stability of the population of the northern part of Montenegro who use wood for 
heating;  
-  preserve the stability of the prices of fuel; as well as  
-  control the preservation of the forest fund, combat illegal harvesting, control the 
implementation of the cutting in line with the cutting plan.  
 
Namely, the Government of neighbouring Albania imposed the total ban of exploitation of fore stry 
in this country in 2014 (measure is in place for 10 years). This measure has influenced the huge 
outflow of wood from Montenegro to this country, and led to a shortfall, price increase and illegal 
cutting of state forests on the border area. Data rela ted to export of wood and wood products from 
Montenegro to Albania are the best indicators showing the impact that the measure of this country 
has caused in terms of rapid increase of export to Albania, which started in 2013. Value of export 
of heating woo d to Albania in 2012 -accounted only 150 Euro, while in 2014 it was 340,000 Euro, WT/TPR/M/369/Add.1  
 
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  and in 2016 was 621,000 Euro. Value of export to Albania, of products from tariff heading 4403 in 
2012 amounted 308,000 Euro, in 2014. 706,000 Euro, and in 2016 1,810,000 Eur.  
 
Furthermore, data show that in the period of two years (from 2014 to 2016) export to Albania 
increased by 83% in the case of wood used for heating, while exports of untreated wood (logs) 
were 156% higher.  
 
At the same time, the prices of these products in Albania were significantly higher, which also 
affected not only the rise in prices on the domestic market, but also the higher outflow, as there 
was a growing interest in exports to that country, rather than sales in the domestic market.  
 
9. What proble m does this measure address to?  
 
Answer:  
As noted in the previous answer the measure was imposed in order to preserve the stability of the 
supply of raw materials to the processing sector, to ensure the stability of the population of the 
northern part of Montenegro who use wood for heating, preserve the stability of the prices of fuel, 
as well as, to control the preservation of the forest fund, combat illegal harvesting, control the 
implementation of the cutting in line with the cutting plan. Montenegro ha s also introduced export 
licenses, with the aim to have better control and to monitor the traceability.  
 
10. How did imposition of a ban on exports of certain wood items (from state forests) and 
imposition of temporary export licensing on these items (when  exported from private forests) 
influence Montenegro's production and exports of wood and products of wood in 2017  compared to 
previous years?  
 
Answer:  
We would like to emphasize that sudden outflow of wood and products of wood, which has started 
in 2013, was a signal for imposing the measure.  
 
In comparison to 2012, value of total export of heating wood in 2013 increased by 147%, in 2014 
by 309%, in 2015 by 503%, and in 2016 by 529%. Additionally, value of total export of logs in 
comparison to 2012 increa sed by 29% in 2013, by 73% in 2014, by 112% in 2015 and by 54%. 
Having in mind these negative trends the Decision on temporary restriction of export of some 
wood products was adopted by the Government in 2017.  
 
Level of export of these products in 2017 ha s been fairly stabilized, and it is nearly to the level of 
2012.  At the same time, market of raw material for processing sector has started to normalize. 
However, considering that the measure has been in force for only one year, it is early to have final 
impact assessment as we believe that market disturbance would be likely to continue or recur if 
the measure was removed or amended.  
 
11. What are other social and economic consequences of making and implementation of such 
decision?  
 
Answer:  
Measure does no t have any social dimension. The economic impact refers to the preservation of 
resources and market stabilization.  
 
Page 124 (Para 4.33)  
 
The Report stipulates that "An administrative fee is applied to exports to cover the costs of 
marking the trees and issuing origin certificates."  
 
Questions:   
 
12. Would Montenegro kindly clarify whether an administrative fee is applied only to exports of 
wood and wood products and what the fee amount is?  
 
Answer:  
According to the Law on Administrative Fees, for the issuance of a license for export and import, a 
single fee of 5 EUR is charged (it is not only for export licenses).  WT/TPR/M/369/Add.1  
 
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In order to monitor the traceability and origin of wood assortments, or forests from which products 
originate, and in accordance with the F orest Law, it is obligatory to possess the document about 
origin of wood issued by the Forest Administration. This document is important because of 
determination whether cut of wood has been carried out in accordance with the Yearly Forest 
Management Plan.  For products intended for export, the Inspection for Forestry, Hunting and 
Unprotected Plant Spices re -enters the site in order to determine the actual origin of product, and 
the fee is charged in order to cover the real costs of subsequent control. The l evel of fees is not 
higher than the cost incurred for these purposes.  
 
13. What authority is responsible for collection of such administrative fee?  
 
Answer:  
The revenues collected from the payment of all administrative costs, including such costs, are 
revenues for the Budget of Montenegro. Collection of these revenues is done by the Forestry 
Administration.  
 
4.3  Mining and Energy  
4.3.2  Energy  
4.3.2.5  Renewable energy  
 
Page 134 (Para 4.80)  
 
It is said in the footnote 70 to Para 4.80 of the Report that "there is no complete data available on 
how much solar energy (photovoltaic PV) is used on the territory of Montenegro but it is clear that 
it plays only a very minor role in the Montenegrin electricity production sector. The strategic 
objective and future  strategy of Montenegro is more supportive to the development of solar 
thermal heating and cooling than utilization of solar energy for electricity production. PV is also not 
exploited in Montenegro because of high investment costs."  
 
Questions:   
 
14. Could Montenegro kindly elaborate on any market access restrictions for foreign investors in 
solar power industry, adopted by Montenegro?  
 
Answer:  
The Law on Foreign Investments stipulates that foreign investors enjoy national treatment, i.e. 
they can  establish business organizations and invest into them on the territory of Montenegro 
under conditions applicable to nationals establishing business organizations; the assets of foreign 
investors cannot be subject to expropriation, except when the law stip ulates the existence of 
public interest to do so, which is done for a fee in accordance with the law.  
 
15. What is the market share between local and foreign enterprises in solar industries?  
 
Answer:  
There is no production of electricity from solar power.  Solar producers are about to enter the 
electricity generation market.  
 
16. Are there any regulations regarding the local content requirements in solar sector 
development?  
 
Answer:  
There is no local content requirements in solar sector.  
 
PART II: QUESTIO NS REGARDING THE Report BY MONTENEGRO (WT/TPR/G/369)  
 
Page 11 (Para 2.48)  
 
It is mentioned in the Report that amendments to the Law on Foreign Investment clarified the 
term of foreign investor and improved investment environment by abolishing restrictions  on 
investments in a company engaged in the production and trade of weapons and military 
equipment. Foreign investors are provided with a national treatment, which means they have the WT/TPR/M/369/Add.1  
 
- 79 - 
 
  same status as domestic investors and are allowed to invest in any secto r of the industry and 
freely transfer financial and other assets, including profits and dividends.  
 
Question:   
 
17. Could Montenegro  kindly confirm that currently there are no any industry sectors where its 
Government imposes restrictions or limitations for foreign investments?  
 
Answer:  
There is no any industry sector where the Government imposes restrictions or limitations for 
foreign  investments. Until 2014, there was a limitation in the sector of military industry (foreign 
investor couldn't be a majority owner of a factory which are dealing with the production and trade 
of weapons and military equipment), but due to the amendments to  the Foreign Investment Law 
of Montenegro adopted in the Parliament of Montenegro in 2014, such a limitation has no longer 
exist.   
 
Page 22 (Para 3.57)  
 
According to the Report "The Government of Montenegro has demonstrated its commitment to the 
realizati on of the concept of trade facilitation, which has been stymied by the Agreement on Trade 
Facilitation of the WTO (TFA), by establishing the National Committee for Trade Facilitation 
(Committee). Namely, the Committee was established by the decision of the  Minister of Finance in 
May 2015 and functions according to the principle of co -chairs between the Ministry of Finance and 
the Ministry of Economy. The composition of the Committee is currently composed of 
representatives of 17 different bodies, of which 6  representatives of various private sector 
associations. Its role is to monitor, coordinate and report to the Government of Montenegro on the 
dynamics of implementation of reforms related to trade facilitation at the national level."  
 
Question:   
 
18. Could  Montenegro kindly provide some more details about the National Committee for Trade 
Facilitation (including general procedure of its operation, main functions, periodicity of meetings) 
and inform on mechanism that serves to ensure coordination and cooperat ion between 
stakeholders in the process of trade facilitation reform through this Committee?  
 
Answer:  
The National Trade Facilitation Committee was established as a permanent multi -agency body 
composed of representatives of all relevant state bodies and the private sector, with the task to 
monitor trade facilitation reform process in Montenegro.  
 
In addit ion to this, the Committee is ensuring coordination and cooperation between above -
mentioned stakeholders; tracking implementation of the TFA and other TF related agreements; 
giving recommendations for development or amendment of strategic and legal documen ts; making 
contacts and ensuring cooperation with international donors for the technical support; improving 
and strengthening partnership and trust between public and private sector; and increasing 
transparency in the process of trade facilitation reform.  
  
The NTFC oversees all on -going projects in the area of trade facilitation, and regularly (once a 
year) reports to the Government about the progress. The project and the results are elaborated in 
the National report, pages 22 -23 (par. 3.60 -65).  
 
Page 22 (Para 3.58)  
 
The Report states that "Bearing in mind the set of listed obligations, under the supervision of the 
National Committee for Trade Facilitation, the first National Strategy for Trade Facilitation is under 
preparation. The aim of the Strategy is  to enable the process of reforms related to trade facilitation 
systemically to be rounded up for the forthcoming period, thus defining a common agenda for all 
border authorities on this issue. Expert support for the implementation of this document has bee n 
provided under the Trade Facilitation Support Program (TFSP) of the World Bank Group."  
 WT/TPR/M/369/Add.1  
 
- 80 - 
 
  Questions:   
 
19. Could Montenegro, please, clarify the state of play of the first National Strategy for Trade 
Facilitation development?  
 
20. What systemic bottleneck s in cross -border trade does it intend to address?  
 
21. Would Montenegro kindly describe key measures, expected to be defined in this Strategy for 
the implementation of concrete trade facilitation reforms?  
 
Answer:  
The first National Strategy for Trade Facilitation development was developed under the NTFC's 
supervision (adopted by the Government on the session held on 29 March 2018). The Strategy 
represents a joint five -year reform plan for all competent authorities in the area of trade 
facilitation. The Strategy is also an answer to a number of obligations arising from the EU 
accession, WTO Trade Facilitation Agreement and regional CEFTA Additional Protocol 5.  
 
The Strategy envisages that by the end of December 2022,  Montenegro will eliminate cross -border 
administrative inefficiencies affecting its competitiveness, thus reducing the time for import, export 
and transit of goods by 50% and the accompanying costs by 20%.  
 
To achieve this strategic goal, the Strategy defi nes five "operational goals" and, with respect to 
each, sets out a "set of measures" to be implemented by the competent authorities. These goals 
are focused on improving transparency and access to information; harmonization and 
rationalization of formaliti es, documentation and fees; implementation of simplified and expedited 
procedures for clearance of goods; improving cooperation and increasing the effectiveness of 
border controls; and extension of automatic processing and electronic data exchange.  
 
Page 2 3 (Para 3.63)  
 
The Report mentions the Project "Pre -Processing of Data for Accelerated Consignments", which is 
being implemented by the Customs Administration, in cooperation with the German Organization 
for International Cooperation - GIZ, within the Global Alliance for Trade Facilitation.  
 
Question:   
 
22. Could Montenegro kindly provide more information regarding the Project "Pre -Processing of 
Data for Accelerated Consignments" and describe timeframe of its implementation, main activities 
and possible  preliminary results of its performance?  
 
Answer:   
The objective of the Project is to facilitate trade through the efficient movement of goods in 
accordance with the Agreement on Trade Facilitation (Article 7.1 "Processing before arrival of 
goods"), the Revised Kyoto Convention and the relevant European Un ion regulations. The 
implementation of the project is expected to contribute to an increase from 25% to 65% of the 
number of shipments that were released within 1 hour of their arrival in the customs territory.  
 
The activity plan for this project envisage d amendments to the Customs Law Implementing 
Regulation, harmonization of IT solutions and its basic specification with the Customs 
Administration IT team, the development of IT solutions that support risk analysis and which will 
be integrated in existing Customs Information System (CIS), piloting paper based solutions during 
the development of IT solutions, with the possibility of a feedback mechanism, and finally a 
complete integration of the IT solution into the CIS.  
 
The amendments to the Customs Law I mplementing Regulation entered into force in July 2017, 
and all other activities regarding implementation of IT solutions are on -going. Full implementation 
of the project is expected by the end of June 2018.  
 
Page 25 (Para 3.79 )  
 
The Report declared that  "The enhancement of legislation has been a continuing activity. Thus, the 
new Law on Tourism and Hospitality was adopted in December 2017. The key novelties of this Law WT/TPR/M/369/Add.1  
 
- 81 - 
 
  relate to the introduction of new types of hotels and models of operations in hotels, aligning 
provision of tourist and hospitality services with modern trends in underdeveloped areas, support 
to investors, as well as the implementation of the EU standards."  
 
Questions:   
 
23. Could Montenegro kindly share its view concerning options for exc hange of experience in the 
fields of marketing activities and statistical data collection and analysis in tourism sector?  
 
Answer:  
The promotion of the tourism product of Montenegro is continuously implemented by the National 
Tourism Organization of Monten egro in cooperation with tourism companies and the Ministry of 
Sustainable Development and Tourism, and in the generating markets of Western and Northern 
Europe, in the region of EX -YU countries, and recently more intensive in certain remote markets, 
in the framework of regional cooperation with the countries in the region, in order to establish and 
adequately brand the regional tourism product. The strategic marketing plan with the guidelines 
for marketing in tourism for the forthcoming five -year period is  underway. When it comes to the 
exchange of experiences in concrete terms, there is a preparedness to exchange experiences 
between the authorities in Montenegro and other stakeholders, in the manner that would be 
mutually agreed.     
 
When it comes to the collection of statistical data and their analysis, including the area of tourism, 
the statistical data are collected, processed and published by MONSTAT (Statistics Office) at the 
national level.  
 
PART IIІ: OTHER QUESTIONS  
 
24. Could Montenegro elaborate on its vision with regard to further activities under Work 
Programme on Electronic Commerce within the WTO and the role of the WTO in promoting 
regulatory environment in facilitating electronic commerce?  
 
Answer:  
The e -commerce analysis in Montenegro identifies measures for improving the state of electronic 
commerce through the screening of legislation and practices. The realization of the 
recommendations should lead to a significant increase in this business form in Montenegro. The 
Work Program on Electronic Commerce within WTO presents an important opportunity for 
Montenegro to improve the administrative regulations and  procedures regarding the process of e -
payment, to encourage the  private companies to operate an d do business  online and to promote 
online trading of the SMEs.  
 
Montenegro is a co -signer of the Joint statement on electronic commerce adopted at the 
XI Ministerial Conference by the large group of member states. In addition Montenegro is an 
active  membe r and supporter of the FEDs (friends of electronic commerce in the WTO).  We 
acknowledge  the relevance of E -Commerce as a tool to narrow the digital divide and agreed on the 
roadmap to initiate exploratory work together toward future WTO negotiations  on tra de-related 
aspects of electronic commerce. In the future effort to engage into concrete discussion Montenegro 
believes  that WTO members need to focus attention on a few issues that can gain consensus, 
including for example: principles  on Consumer protectio n, Unsolicited Messages, Authentication 
and Trust Services and Electronic Contracts. Advancing on these issues would be an 
important  step in contributing to a better integration especially  of SMEs in  the world economy.   
 
Montenegro achieved a lot in this a rea. The Strategy for Development of Information Society of 
Montenegro by 2020, having the strategy for development of electronic communications as an 
integral part, defines the strategic directions of development in this field with the aim of meeting 
the EU standards set by the Digital Agenda 2020 and the Strategy for Single Digital Market.  
 
Digital technologies help the development of economy and strengthening of national 
competitiveness. Fast adoption of digital technologies in economy guarantees rapid d iffusion of the 
benefits they bring. Like the energy or traffic, the Internet has become an integral part of state 
infrastructure and therefore an important factor of the development of modern economy.  
 WT/TPR/M/369/Add.1  
 
- 82 - 
 
  Electronic communication networks and infrastructure in Montenegro make possible the 
implementation of state -of-the-art technologies and services. Through such networks and 
infrastructure, almost all electronic communication services that are provided globally, are offered 
to the citizens of MNE satisfying t hus their current needs.  
 
The legislative framework for electronic communications in Montenegro has been harmonized with 
the EU acquis . Therefore, a stabile business environment has been created for the investors, while 
the citizens have the possibility to  select operators and quality electronic communications services, 
at affordable prices.  
 
Operators' investments in recent years are significant and they are oriented toward the extension 
of network coverage and development of the services. Montenegro, thro ugh policies in this area, 
through adopted regulations of the market, has created transparent and stabile investment 
environment. Telecommunication development has positive impact on the improvement of overall 
business environment and makes Montenegro even  more attractive for interested investors in 
other areas.  
 
Broadband infrastructure is essential for providing e -health, e -education, e -government, e -
commerce and many other e -services. Our goal is to provide available broadband internet, which 
will be us ed in business, as well as in everyday life of citizens. Particular attention in this area is 
dedicated to improving the coverage of suburban and rural areas, given that the equal regional 
development of Montenegro is indispensable, in order to overcome th e so-called "Digital gap".  
 
The number of users of electronic communications services in Montenegro is in constant growth in 
all segments of the market. The annual growth of mobile telephony users is 11%, and the number 
of fixed broadband users has increas ed by 17% compared to 2016, with high access speeds 
(above 30Mb / s) being used by about 25% of users.  
 
The World Economic Forum in the latest Global Competitiveness Report 2016 -2017, in the Network 
Readiness Index, positions Montenegro at 51st place amon g 139 countries, with the index 4.3. The 
Council of Foreign investor in so -called "white book 2017", proclaimed telecom and ICT sector for 
the one with the simplest and the most effective for investments in the country.  
 
25. When does Montenegro plan to ac cept the Marrakesh Treaty to Facilitate Access to Published 
Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled, which was 
adopted on June 28, 2013 and entered into force on September 30, 2016?  
 
Answer:  
Montenegro is considering the possibility but hasn't decided yet about  joining the Marrakesh Treaty 
to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise 
Print Disabled.  
 
26. With respect to the Beijing Treaty on Audiovisual Performances, adopted on June 26, 2012, 
and signed by Montenegro on May 27, 2013, what are the intentions to join this instrument?  
 
Answer:  
Montenegro is considering the possibility but hasn't decided yet about  joining the Beijing Treaty on 
Audiovisual Performances.  
 
 WT/TPR/M/369/Add.1  
 
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  UNITED STATES  
Questions based on the Secretariat Report (WT/TPR/S/369)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
Page 48, Paragraph 3.2:   The Secretariat Report notes that in 2017 Monte negro aligned its tariff 
with that of the EU.  
 
• Are the EU procedures contemplated to go immediately into effect on accession or will they 
be phased in?  
• Can Montenegro provide information on how the status of trade with the US might need to 
change once the procedures go into effect?  
• What is the expected impact on procedures such as the entry of goods upon EU accession?  
 
MNE answer:  In the process of EU accession Montenegro is harmonizing its legislation with the 
EU acquis in all areas, including trade. This process requires alignment of all national trade 
procedures with those of the EU.  
 
Upon becoming the EU Member state, Montenegro will implement Union Customs Code that 
represents set of rules covering customs matters, including customs procedures, in trad e with non -
EU countries. In addition, Montenegro will also integrate into the EU Customs Union and 
implement its basic principles, like no customs duties at internal borders between the EU Member 
States and common customs duties on imports from outside the  EU. 
 
3.3.2.2.1 Food standards -setting framework  
 
Page 81, Paragraph 3.85 :  The Secretariat Report states that "Montenegro's legislative system 
adopts and updates the relevant SPS laws and regulations to ensure compliance with the EU 
acquis."  
 
• As Monteneg ro's regulatory and institutional frameworks are updated with respect to SPS 
measures in order to comply with the EU acquis, how are public comments being taken into 
account before adoption?   
 
MNE answer:  Considering that Montenegro is a very small and di stinctive country, one of the 
fundamental aspects of regulatory transparency refers to openness of the regulation -making 
process for all concerned stakeholders through formal and informal consultations prior to and after 
adoption.  
 
Montenegro finds that such consultation mechanisms have positive impacts on the efficiency of 
activities and improve the quality and enforceability of regulations and measures.  
 
Formal instruments for consultation with the private sector and civil society are in place and 
usual ly involve the most important stakeholders (i.e. producers, companies, business associations, 
consumer groups, etc.).  
 
There is also formal and informal dialogue with private sector and civil society. Namely, working 
groups are formed with representatives  of state institutions, private sector and NGOs in reference 
to all important issues,. Moreover, when concrete problems appear, formal and informal 
consultations are held, depending on the topic.  
 
General formal framework for consultation process in the pr eparation of policies and regulations 
exists in Montenegro (Decree on the procedure and manner of conducting public debate in 
preparation of laws, Official Gazette of Montenegro, 12/2012, from 04 February2012). Duration of 
public debate is 40 days. Accordi ng to the Article 12 of the Decree on the procedure and manner of 
conducting public debate in preparation of laws, there is an obligation for each Ministry to prepare 
a report on public debate. This report has to be published on the website of the relevant  ministry, 
as well as on the government portal 10 days after public debate is finished.  
 
http://www.minpolj.gov.me/rubrike/Javne_rasprave/  
 WT/TPR/M/369/Add.1  
 
- 84 - 
 
  Public notice and comment procedures are in place,  allowing all citizen concerned or potentially 
affected by the regulation to provide comments before a measure is adopted.  
 
Private sector is usually presented by the Chamber of Economy of Montenegro and interested 
NGOs may participate as well.  
 
However, t he Government has also set up a Council for Improvement of Business Environment, 
Regulatory and Structural Reforms in Montenegro and according to the official handbook for RIAs, 
with obligation of evaluating the impact of proposed measures and alternatives  if such measures 
could have effects, including macroeconomic, financial, sectorial, environmental, social and 
administrative effects.  
 
The assessment of the trade -related impacts is a compulsory element.  
 
Some examples:  
•  http://www.ubh.gov.me/vijesti/180108/OBAVJEsTENJE -Izmjene -lista-stetnih -organizama -
bilja-biljnih -proizvoda -i-objekata -pod-nadzorom.html  
 
•  http://www.ubh.gov.me/vijesti/178296/Izvjestaj -Procedure -registracije -sredstava -za-
zastitu -bilja.html  
 
•  http://www.ubh.gov.me/vijesti/174162/Vodic -za-dobru -higijensku -praksu -u-poslovanju -
sa-hranom.html  
 
•  http://www.ubh.gov.me/vijesti/161539/U -Podgorici -predstavljen -Nacrt -nacionalnog -plana -
za-odrzivu -upotrebu -pesticida.html  
 
• How does Montenegro ensure that the appropriate risk assessments have taken into account 
Montenegro's particular risks to human, animal, or plant health, as well as assessments by 
relevant international organizations?   
 
MNE answer:  Montenegro has set up a specific national system with the existing structures for 
the risk an alysis (risk assessment and risk management) of hazards associated with food/animal 
health and plant health, again having in mind limited human resources in Montenegro.  
 
Montenegro is familiar with the fact that implementation of a SPS system based on risk  analysis is 
strongly dependent on capacities of relevant institutions in terms of: regulatory basis, 
organizational structure, written policies, developed tools for risk assessment, human capacities, 
finances and quality management system.  
 
Montenegro ha s set up a simple system which provides functional national institutions in charge of 
SPS issues: Ministry of Agriculture and Rural Development and the Directorate for Food Safety, 
Veterinary and Phytosanitary Affairs (together with inspections) and with t his organization 
Montenegro ensures efficacy and quality of necessary services (we still have some human capacity 
needs).  
 
Montenegro, based on strategic planning, financing, regulatory and enforcement strategies, 
respectively on the fact that Montenegro i s in the phase of closing benchmarks in negotiation 
process with EU in negotiating Chapter 12 "Food safety, veterinary and phytosanitary policy", is 
implementing the EU approach to the risk assessment (relying on the risk assessments carried out 
by the EU)  and risk management, but Montenegro also considers internationally recommended 
practice, and in parallel  participates in the work of relevant international organizations (IPPC, OIE, 
Codex).  
 
•  https://www.ippc.int/en/countries/montenegro/  
•  https://www.ippc.int/en/news/2017 -ippc-regional -workshop -for-central -and-eastern -
europe -and-central -asia-successfully -held-in-georgia/  
 
• When adopting EU legislation, please explain Montenegro's process in conducting the 
appropriate risk assessments relevant to their own consumer's consumption and exposure 
levels, in order to determine the appropriate level of protection.  
 WT/TPR/M/369/Add.1  
 
- 85 - 
 
  MNE answer:  When adopting EU legislation, Montenegro does not conduct the risk assessments 
relevant to the own consumers' consumption and exposure levels, but in order to determine the 
appropriate  level of protection, Montenegro relies on the risk assessments carried out by the EU.  
 
According to Article 5.1 of the SPS Agreement, Montenegro uses the opportunity: "members are 
not required, to conduct their own risk assessment, and may base their meas ures on a risk 
assessment carried out by another Member or by relevant international organizations".  
 
Montenegro is familiar with the fact that Members are nonetheless responsible for the 
appropriateness and comprehensiveness of the risk assessment on whi ch they base a measure, 
which should address the risk situation actually faced by the Member imposing the measure.  
 
• Regarding products that are banned for SPS purposes, does Montenegro have an 
independent risk assessment body to carry out risk assessments to justify its SPS measures, 
or is Montenegro relying on risk assessments carried out by the EU for these purposes?  
 
MNE answer:  Montenegro relies on risk assessments carried out by the EU.  
 
• As new laws and regulations are promulgated in the EU, will Montenegro adopt the new 
laws? If so will Montenegro notify new measures to the WTO SPS Committee at a time when 
trading partners' comments can be taken into consideration before measures become final?  
 
MNE answer: As new laws and regulations are promulgated in the EU, Montenegro will adopt 
these new laws according to the Programme of Accession to the EU.  
 
Montenegro will notify new laws and regulations to the WTO SPS Committee according to the SPS 
Agreement. Member s are aware that they have a chance (trading partners) to give  comments 
even when EU submits notification, therefore all comments of Members are incorporated in the EU 
text and taken into consideration before measures become final in the EU and after that  they 
become part of the legislation of Montenegro.  
 
• The EU has shifted to a hazard based approach for pesticide regulation. Will Montenegro 
conduct risk assessments prior to establishing its national pesticide standards, including 
basing its maximum resid ue levels on risk assessments, as obligated under the WTO SPS 
Agreement?  
 
MNE answer:  Montenegro reminds that even before accession to the WTO, it had legislation 
based on the EU approach for many SPS areas, and "EU has shifted to a hazard based approach 
for pesticide regulation" is not new approach. Once again, since Montenegro is a very small and 
distinctive country, this also means that human resources (lacking the people of specific 
professions) are limited and we are not able to develop full risk asses sments in many areas, not 
only for pesticide regulation.   
 
Page 82, Paragraph 3.85:   The Secretariat Report states, "The 2015 amendments to the 2007 
Law were mainly aimed at establishing a more efficient system with clearly defined competences 
and respons ibilities, simplifying the chain of command, achieving better coordination and 
communication, and facilitating the training of employees."   The United States notes that since the 
2011 accession of Montenegro to the WTO, the country has not notified any SPS  measures under 
Article 7 of the SPS Agreement.   
 
• Will Montenegro notify its traceability system for genetically modified organisms to the WTO 
prior to introducing the new system in 2018?  
 
MNE answer:  Law on GMO (OG No. 22/2008) is in force in Montenegro and that is the same Law 
adopted during the WTO negotiation process.  
 
Montenegro will notify new laws and regulations to the WTO SPS Committee according to the SPS 
Agreement.  
 
• Will Montenegro notify  the international trading community  of already establish ed and 
pending SPS measures?  
 WT/TPR/M/369/Add.1  
 
- 86 - 
 
  MNE answer:  Montenegro has sent 50 notifications in 2018, according to the Programme of 
Accession to the EU. As new laws and regulations are promulgated in the EU, Montenegro will 
adopt these new laws and notify new laws and regulations to the WTO SPS Committee according 
to the SPS Agreement. Once again: Members are aware that they have a chance (trading 
partners) to give  comments even when EU submits notification, therefore all comments of 
Members are incorporated in the EU text and taken into consideration before measures become 
final in the EU and after that they become part of the legislation of Montenegro.  
 
Page 82 -83, Paragraph 3.88:   The Secretariat notes: "Since 2015, MARD remains responsible 
for regulating pesticide r esidues in foodstuffs, in accordance with the maximum residue levels 
(MRLs) set out in the Law on Food Safety, the Law on Plant Protection Products… and the 2015 
Regulation on maximum residue levels (MRLs) of pesticides in or on plants, plant products, foo d or 
feed. 
 
• Based on para 3.85, Montenegro is aligning its SPS standards with the EU, which has shifted 
to a hazard based approach for pesticide regulation. Will MARD conduct risk assessments 
prior to establishing pesticide standards, including basing pest icide maximum residue levels 
and import tolerances on risk assessments, as obligated under the WTO SPS Agreement?  
 
MNE answer:  Montenegro reminds that even before the WTO accession it had legislation based 
on the EU approach for many SPS areas, and "EU has  shifted to a hazard based approach for 
pesticide regulation" is not a new approach. Once again, since Montenegro is a very small and 
distinctive country, this also means that human resources (lack offing the people of specific 
professions) are limited and  we are not able to develop full risk assessments in many areas not 
only for pesticide regulation.    
 
Page 83, Paragraph 3.89:   The Secretariat Report states, "Since 2009, Montenegro has 
conducted annual monitoring of pesticides in line with EU recommendations." Montenegro has 
stated they adopt and update laws and regulations with the EU acquis.   
 
• Does Montenegro plan to adopt EU legislation identifying criteria for endocrine disruptors ?  If 
so, has Montenegro considered less trade restrictive then reasonable available, taking into 
account technical and economic feasibility, in order to achieve the appropriate level of SPS 
protecti on for this criteria?    
 
MNE answer:  Montenegro reminds that even before the WTO accession it had legislation based 
on the EU approach for many SPS areas. Once again, since Montenegro is a very small and 
distinctive country, this also means that human res ources (lacking people of specific professions) 
are limited and Montenegro is not able to develop its own approach system, Montenegro will rely 
on the EU approach.    
 
• When adopting EU legislation, will Montenegro please explain their process in conducting the 
appropriate risk assessments relevant to their own consumers'  consumption and exposure 
levels, in order to determine their appropriate level of protection?  
 
MNE answer:  When adopting EU legislation, Montenegro does not conduct the risk assessments 
relevant to the own consumers' consumption and exposure levels, but in order to determine the 
appropriate level of protection, Montenegro relies on the risk assessments carried  out by the EU.  
 
According to Article 5.1 of the SPS Agreement, Montenegro uses the opportunity: "members are 
not required, to conduct their own risk assessment, and may base their measures on a risk 
assessment carried out by another Member or by relevant international organizations".  
 
Montenegro is familiar with the fact that Members are nonetheless responsible for the 
appropriateness and comprehensiveness of the risk assessment on which they base a measure, 
which should address the risk situation actuall y faced by the Member imposing the measure.  
 
3.3.2.2.3 Transparency  
 
Page 88, paragraph 3.104:   The Secretariat Report states Montenegro plans to "address the 
issue of notification in this area [SPS] in the course of 2018."   
 WT/TPR/M/369/Add.1  
 
- 87 - 
 
  • Please explain the process b y which Montenegro will notify SPS measures to the WTO.  
 
MNE answer:  Process by which Montenegro will notify SPS measures will be in accordance with 
the WTOSPS Agreement.  
 
• Will Montenegro notify all updated measures to the WTO (for example all legislation  and 
regulations that have been updated in order to align with the EU acquis)?  
 
MNE answer:  Montenegro has sent 50 notifications in 2018, according to the Programme of 
Accession to the EU.  
 
Montenegro can notify all updated measures if is necessary and al l legislation and regulations that 
have been updated in order to align with the EU acquis before 2018.  
 
All members are aware that they have a chance (trading partners) to give  comments  even when 
EU submits notification, therefore all comments of Members are incorporated in the EU text and 
taken into consideration before measures become final in the EU and after that they become part 
of the legislation of Montenegro.  
 
• Has Montenegro  established a fully functioning enquiry point and national notification 
authority?   
 
MNE answer:  Montenegro has established a fully functioning enquiry point and national 
notification authority.  
 
• Have workshops  or trainings been planned to develop the capacity building needed for the 
WTO SPS enquiry point?  
 
MNE answer:  Montenegro had workshop in 2017 for capacity building and in 2018 representative 
of Montenegro will participate in the workshops organized by WTO . 
 
3.3.6 Intellectual property rights  
 
Page 103, Paragraph 3.145:  The Secretariat Report indicates that Montenegro has taken number 
steps to "align its laws and regulations with the WTO TRIPS Agreement and European Union 
standards  . . . ."  Footnote 266 cites a 2012 European Commission Screening Report of 
Montenegro.   
 
• As noted in our similar question in the Government Report, please provide a brief summary 
of the copyright law provisions  that were amended.   
 
MNE answer:  The most important novelties in the Law on Amendments to the Law on Copyright 
and Related Rights are regulating issues related to the use of orphan works, increasing terms of 
protection of the rights of phonogram producers from 50 to 70 years, more detailed regulating sui 
generis right o f makers of databases and introducing Community exhaustion of rights from the 
date of accession of Montenegro to the European Union. This law determines who, when, how and 
for what purposes may use orphan works, the end of orphan works status and the issue  of fair 
compensation for their use. Law also prescribes collective management of rights on voluntary basis 
with extended effect, as well as granting multi -territorial licenses for online rights in musical 
works. Law prescribes possibility for right holder  whose copyright or related rights has been 
infringed to file a claim requesting an injunction against an intermediary whose service was used 
by a third party to infringe his right.  
 
• In addition , does Montenegro intend to further amends to its copyright la w in the next year 
or two?   
 
MNE answer:  Yes, Montenegro plans to further amend Copyright Law, during next year, 
regarding collective management of copyright.  
 
Page 104, Paragraph 3.147:   The Secretariat Report identifies of number of international IP 
conventions that Montenegro has joined since 2012.  Does Montenegro plan to join the WIPO WT/TPR/M/369/Add.1  
 
- 88 - 
 
  Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually 
Impaired or Otherwise Print Disabled (2013)?  
 
MNE answer:  Montenegro is considering possibility but hasn't decided yet about joining the WIPO 
Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually 
Impaired or Otherwise Print Disabled.  
 
Page 104, Paragraph 3.149:   The Secretariat Report mentions there is "[n]o separate 
agency  . . . in charge of copyright."  The Intellectual Property Office of Montenegro (IPOM) handles 
registration of "professional segments on copyright and related rights."  Please confirm that thi s 
phrase relates to the oversight and administration of the collective management system.   
 
MNE answer:  Yes, we confirm. In this paragraph it is stated that "The Intellectual Property Office 
of Montenegro (IPOM), an independent administrative body establi shed in 2008 and supervised by 
the MEK, is responsible for registration of industrial property rights, namely trademarks, patents, 
industrial designs, geographical indications and designations of origin, and topographies of 
semiconductor products, includin g professional segments on copyright and related rights (licenses 
for collective management organizations and supervision)." This means that IPOM is in charge for 
issuing licenses to collective management organizations, supervision over the work of collect ive 
management organizations and administration of the collective management system.  
 
3.3.6.1 Industrial property  
 
Page 104, Paragraph 3.149:  The Secretariat Report indicates that Montenegro's law contains 
penal provisions, such as fines and imprisonment  for patent infringement. Have there been any 
criminal cases in Montenegro for patent infringement?   
 
MNE answer:  There have been no criminal cases for patent infringement in Montenegro during 
period 2014 -2017. We have no statistics for the period before 2014.  
 
3.3.6.1.1 Patents  
 
Page 105, paragraph 3.152:  The Secretariat Report indicates that compulsory licenses may be 
granted "on the grounds of lack or insufficiency of exploitation of a patent, to any person filing a 
request, if the patent owner has not  exploited the invention on the territory of Montenegro on 
reasonable terms, or has not made effective and serious preparations for its exploitation." Could 
you please explain whether Montenegro's laws provide for safeguards against prejudicing 
legitimate interests of the patent owners, as set forth in Article 31(a) -(l) of the TRIPS Agreement. 
Please explain how these provisions are implemented.  
 
MNE answer:  Article 31(a) -(l) of the TRIPS Agreement has been implemented is several articles 
of Patent law. Thi s law prescribes that compulsory license may be granted after considering the 
merits of each individual case, upon a request of the interested person. The interested person shall 
be required to prove that he has made reasonable efforts, before filing the r equest, to obtain 
authorization from the right -holder to use the protected invention on reasonable commercial terms 
and conditions and that he has not received such authorization within a reasonable period of time, 
except in the event of public interest in  which the right -holder shall be notified of the compulsory 
license grant proceedings as soon as possible. The compulsory license may also be granted if the 
exploitation of the protected invention is necessary for the fulfilment of public interest (the 
protection of public health and providing food, and the protection of public interests in the fields of 
vital significance for socio -economic and technological development) or if the protected invention is 
used in a manner considered to be contrary to the pri nciples of free competition. The scope and 
duration of a compulsory license shall be limited to the purpose for which it has been granted. A 
compulsory license shall not be exclusive. A compulsory license may be assigned only with the 
company or a part the reof, where it is used. A compulsory license shall predominantly be granted 
for the supply of the domestic market. A compulsory license may be terminated, subject to 
adequate protection of the legitimate interest of the persons so authorized, if and when 
circumstances that have led to its grant cease to exist and are unlikely to recur. Upon 
substantiated request, competent authority shall re -examine the further existence of these 
circumstances. The holder of a compulsory license shall be required to pay the  patent holder a 
mutually agreed remuneration.  In the absence of an agreement on the amount and method of WT/TPR/M/369/Add.1  
 
- 89 - 
 
  payment of such remuneration, the competent court shall decide, taking into account the merits of 
each individual case and the economic value of the compulsory license.  
 
Compulsory licenses granted by competent authorities shall be final and an administrative dispute 
against such licenses may be instituted before the competent court.  
 
Against judgments on the amount of remuneration, an appeal may be f iled in accordance with the 
Law on Courts.  
 
If a compulsory license in public interest has been granted in order to rectify anti -competitive 
practice, when determining the total amount of remuneration, the need to remedy such practice 
shall be taken into a ccount.  
 
If it is likely that the circumstances that led to distortion of the competition in the market re -occur, 
the competent authority may reject the termination of a compulsory license in the public interest.  
 
If compulsory license has been granted wh en the commercial use of an invention that has been 
subsequently protected in the name of another person is not possible, without the use of the 
protected invention in whole or in part, an interested person may only be the holder of the patent 
for subseque ntly protected invention, provided that: 1) the subsequently protected invention 
involves a technical advancement of special economic significance in relation to the invention 
protected by the first patent; and that 2) the holder of the first patent is ent itled, on reasonable 
terms, to a cross -license to use the subsequent invention. Authorization for the use of the 
invention protected by the first patent shall be non -transferable except in the case of simultaneous 
transfer of the subsequent patent.  
 
Page 1 05, Paragraph 3.152:   The Secretariat Report indicates that a compulsive license may be 
issued for "a patent necessary for the manufacture and sale of pharmaceutical products which are 
intended for export to countries in need of such products to address pu blic health issues." Please 
explain how Montenegro meets the obligations of the "exporting Member" under paragraph 6 of 
Doha Declaration and Decision of the General Council of 30 Augu st 2003 (WT/L/540 and Corr.1, 
1 September 2003).  
 
MNE answer:  The Patent  law prescribes that when deciding on the issuance of a compulsory 
license (for a patent and/or supplementary protection certificate necessary for the manufacture 
and sale of pharmaceutical products, when such products are intended for export to eligible 
importing countries in need of such products in order to address public health problems) what shall 
specifically be taken into consideration is the need to implement the Decision of the General 
Council of WTO of 30 June 2003 on the implementation of paragra ph 6 of the Doha Declaration on 
the TRIPS Agreement and Public Health of 14 November 2001.  
 
The Patent law prescribes that the importing country must make a notification to the Council for 
TRIPS of its intention to use the system as an importing country, whether it will use it as a whole 
or in a limited way.  
 
An application for the issuance of a compulsory license contains, among others, name of the 
pharmaceutical product which the applicant intends to manufacture and sell under the compulsory 
license, the quantity of the pharmaceutical product which the applicant intends to manufacture 
under a co mpulsory license, the importing country or countries and evidence of prior negotiations 
with the right -holder. In deciding on the application for the issuance of a compulsory license the 
Government is obliged to verify in particular whether each of the imp orting countries cited in the 
request, which is a member of the WTO, has made a notification to the WTO in accordance with 
the Decision.  
 
The quantity of product that, based on the compulsory license, may be manufactured shall not 
exceed the quantity neces sary to satisfy the needs of the importing country or importing countries 
cited in the application.  
 
The compulsory license shall order that products manufactured under a compulsory license shall 
be clearly identified through special labels and markings as  products manufactured under a 
compulsory license. These products shall be distinguished from products produced by the right -WT/TPR/M/369/Add.1  
 
- 90 - 
 
  holder through special packaging and/or special colors or shapes, if possible, and if there is no 
significant impact on price.  
 
The compulsory license shall order the licensee, that prior to shipment to the importing country, 
post on its website, which shall be communicated to the Government, the following information:  
1) the quantities of the product and the importing countries to which the products are delivered 
under the compulsory license;  
2) the distinguishing features in product labelling.  
 
The Government shall notify the Council for TRIPS of its final decisions on i ssuing compulsory 
licenses for export to countries with public health problems, the conditions under which they were 
issued, as well as of their termination and modification within 30 days of the final decision on 
issuing a compulsory license, or its termi nation and modification. This notice shall include:  
 
1) the name and address or the name and registered office of the licensee;  
2) the product concerned;  
3) the quantity to be supplied;  
4) the importing country;  
5) the duration of the license;  
6) the website address of the licensee on which prescribed information have been posted.  
 
Page 105, Paragraph 3.152:   The Secretariat Report indicates that compulsory licenses may be 
granted "on the grounds of lack or insufficiency of exploitation of a patent, t o any person filing a 
request, if the patent owner has not exploited the invention on the territory of Montenegro on 
reasonable terms, or has not made effective and serious preparations for its exploitation." Please 
explain whether Montenegro's laws provid e for safeguards against prejudicing legitimate interests 
of the patent owners, as set forth in Article 31(a) -(l) of the TRIPS Agreement. Please explain how 
these provisions are implemented.  
 
MNE answer: The same question like the second previous. Please see the answer.  
 
3.3.6.2 Copyright and related rights  
 
Page 110, Paragraph 3.174:  The Secretariat Report describes orphan works as "books, journals, 
newspaper, magazines and films produced by right holders who are not identified or cannot be 
located or contained to obtain copyright permissions."  Please provide information on what, if any, 
outreach must be made to determine whether a copyright owner can be located or contacted 
before a work may be considered an orphan work.  Further, please provide information on whether 
there is a process by which a work must be officially declared an orphan work before it may be 
used as outlined in the 2016 amendments.  
 
MNE answer:  In accordance with the Copyright Law, as amended in 2016, an orphan work shall 
be the work or a phonogram in which the right holder is not identified or, if one or more of right 
holders are identified, none is located in the diligent search, carried out and recorded in 
accordance with the provisions of this Law.  
 
An orphan works may be used by publicly accessible libraries, educational establishments and 
museums, archives, f ilm and audio heritage institutions and public -service broadcasting 
organizations established in Montenegro in order to carry out the work of public interests.  
 
The above mentioned institutions and organizations shall, in order to establish whether a work or 
phonogram is an orphan work, prior to their use, ensure that a diligent search is carried out in 
respect of each work or other protected subject -matter, by consulting the appropriate sources of 
data for the specific category of works and other protected  subject matters.  
 
The diligent search shall be carried out:  
 
1) by consulting the sources which are available in Montenegro;  
2) by consulting the publicly accessible online database, established and managed by EUIPO;  
3) where it is not possible to iden tify or locate the right holders by consulting above mentioned 
sources, and when there is evidence to suggest that relevant information on right holders WT/TPR/M/369/Add.1  
 
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  may be found in other countries, by consulting the sources of information available in those 
countries.  
 
The above mentioned institutions and organizations shall maintain records on diligent searches 
carried out and provide the competent authority (IP Office) with the following information:  
 
1) the results of the diligent searches that it carried out and w hich have led to the conclusion 
that a work or a phonogram is considered an orphan work;  
2) the use of the orphan work;  
3) any changes of the orphan work status of works or phonograms that these institutions and 
organizations use;  
4) the contact informat ion of the institution and organization concerned (name, address, 
telephone number, fax number, e -mail address).  
 
These information, except the information available in the EUIPO, shall be recorded in the publicly 
accessible online database. The database shall be established, managed and published on its web 
page by IP Office.  
 
Page 111, Paragraph 3.178:   The Secretariat Report indicates that IPOM's Department for 
Copyright and Related Rights handled copyright registration, supervision of the collective 
management organizations, and international cooperation.  We have several questions:   
 
• Please provide more details on the copyright registration function (such as what legal 
benefits accrue for presumably voluntary registration, how many registration claims are 
received and issued each year).    
 
MNE answer:  Copyright law prescribes that in order to secure evidence of their copyright and 
related rights right holders may deposit copies of their protected matter with the competent 
authority (IP Office). The competent authority shall keep the register of deposited copies by 
categories of copyrig ht works and by subject of related rights. The rights with respect to deposited 
protected matter shall belong to the persons who are entered in the register as their holders until 
proven otherwise. A conscientious person who has infringed somebody's copyri ght or related right 
relying on the accuracy of register data shall not be liable for any damages. In 2014 there were 
30, in 2015 and 2016 22, and in 2017 27 claim s for the deposit and entering into the Register . The 
number of issued certificates was 29 in  2014, 22 in 2015, 19 in 2016 and 27 in 2017.  
 
• Can documents  (such as transfers and assignments of copyrights) be recorded with IPOM?  
If so, what legal benefits accrue?  
 
MNE answer:  No, these documents cannot be recorded with IPOM.  
 
• The report  notes the " administrative capacity in the area of copyright could be further 
strengthened," and efforts to assist with the issue of understaffing were "taken in 2014 
under the Rule on Internal Organization and Systematic Job Plan."  Please describe what 
efforts were undertaken in and since 2014.  Are there any plans to increase staffing (from 
two people as of November 2017) and provide any other financial reports to improve the 
operation of this small office?    
 
MNE answer:   In 2014, 2015, 2016 and 2017 – According t o the Rule book on internal 
organization and systematization there were foreseen 2 work posts (senior advisor I and senior 
advisor II), which are covered.  
 
In 2018 - According to the new Rule book on internal organization and systematization, 
Department fo r copyright and related rights is administratively strengthened and therefore three 
officials are being foreseen to deal with copyright issues, namely: senior advisor I, senior advisor 
II and senior advisor III.  
 
Human Resources planning for 2018 identifie s covering next work posts: Deputy Director for the 
Department for copyright and related rights, international cooperation and IT services as well as 
the Head for the  Department for copyright and related rights and international cooperation.  
 WT/TPR/M/369/Add.1  
 
- 92 - 
 
  By the EU Acc ession Program for Montenegro (2018 -2020) as regard administrative capacities it is 
planned to fill the following work posts: Head for the  Department for copyright and related rights 
and international cooperation, senior advisor II and senior advisor III.  
 
Based on the above -mentioned, it could be concluded that the field of copyright and related rights 
is much more reinforced in comparison with the previous period. Namely, in the previous period 
there were foreseen only 2 work posts, but now three position s are defined, for which necessary 
budget means are provided and which covering is planned by relevant documents, respectively by 
the Human Resources planning for 2018 and EU Accession Program for Montenegro (2018 -2020).  
 
Questions based on the Government  Report (WT/TPR/G/369)  
 
2 ECONOMIC POLICIES  
2.6 Investment policy  
 
Page 11, Paragraphs 2.51 -2.52:   The Government Report mentions free zones with cost 
reductions and other benefits.  Are U.S. firms and others that are subject to non -preferential rules 
and tariffs eligible to use such zones?  
 
MNE answer:  In the free zones, all the companies, regardless of their seat, can operate in 
accordance with the Law on Free Zones and other laws relevant for companies operating in the 
free zone.  
 
3 TRADE POLICY  
3.7 Customs system  
 
Pages 21 -22, Paragraphs 3.54 -3.55:   The Government Report mentions that duties are 
calculated and charged at a percentage rate in relation to the value of goods (ad valorem) and in a 
certain amount per unit of measure for the mass of goods (specific customs duty).   
 
• Can Montenegro supply an y supporting data of this process?   
 
MNE answer:  Article 4 of the Customs Tariff Law (Official Gazette of Montenegro, No. 28/12) 
prescribes that the customs duty shall be calculated and collected on the goods imported into the 
customs territory of Montene gro applying the customs rate specified in the Customs Tariff 
(column  4 - Rate) on the customs value of goods (ad valorem customs duty).  
 
Exceptionally, for the goods for which the Customs Tariff specifies the amount of customs duty per 
unit of measure (sp ecific customs duty), the amount of customs duty per unit of measure 
calculated for the quantity of goods being imported shall be added to the amount of customs duty, 
referred to in paragraph  1 (above).  
 
• In addition, would a potential EU accession affect t he treatment of non -preferential trade?  
 
MNE answer: Accession of Montenegro to the EU will affect the treatment of non -preferential 
trade. Namely, on the date of accession to the European Union, Montenegro will take over all 
Union trade policies, and the  Customs Administration will be in obligation to determine non -
preferential origin for those products that are subject to trade policy measures.  
 
In addition to aligning legislation with the EU acquis in the area of non -preferential origin, the 
Customs Adm inistration will ensure proper application of the legal framework through further 
overall strengthening of administrative capacities and further training of customs officials in the 
area of non -preferential origin of goods.  
 
Page 31, Paragraph 3.114:   The Government Report references 2016 amendments to the Law 
on Copyright and Related Rights that have raised "the status of authors and holders of related 
rights  . . . to a higher level."  Can Montenegro provide a brief summary of the amended copyright 
law pro visions?  
 
MNE answer:  The most important novelties in the Law on Amendments to the Law on Copyright 
and Related Rights are regulating issues related to the use of orphan works, increasing terms of 
protection of the rights of phonogram producers from 50 to 70 years, more detailed regulating sui WT/TPR/M/369/Add.1  
 
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  generis right of makers of databases and introducing Community exhaustion of rights from the 
date of accession of Montenegro to the European Union. This law determines who, when, how and 
for what purposes may use orph an works, the end of orphan works status and the issue of fair 
compensation for their use. Law also prescribes collective management of rights on voluntary basis 
with extended effect, as well as granting multi -territorial licenses for online rights in musi cal 
works. Law prescribes possibility for right holder whose copyright or related rights has been 
infringed to file a claim requesting an injunction against  WT/TPR/M/369/Add.1  
 
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  UNITED STATES FOLLOW -UP QUESTIONS  
Follow -up questions based on the Secretariat Report (WT/TPR/S/369)  
 
3.3.2.2.1 Food standards -setting framework  
• Will Montenegro notify  the international trading community  of already established and 
pending SPS measures?  
 
MNE answer:  Montenegro has sent 50 notifications in 2018, according to the Programme  of 
Accession to the EU. As new laws and regulations are promulgated in the EU, Montenegro will 
adopt these new laws and notify new laws and regulations to the WTO SPS Committee according 
to the SPS Agreement. Once again: Members are aware that they have a  chance (trading 
partners) to give  comments even when EU submits notification, therefore all comments of 
Members are incorporated in the EU text and taken into consideration before measures become 
final in the EU and after that they become part of the leg islation of Montenegro.  
 
Follow Up: In reply to U.S. question “Will Montenegro notify the international trading community 
of already established and pending SPS measures?”, Montenegro replied that it has notified 50 SPS 
measures to the WTO in 2018. In revi ewing the WTO SPS Information Management System (IMS) 
database, no notifications from Montenegro are documented in the WTO IMS. We would encourage 
Montenegro to contact the WTO Secretariat to ensure that its SPS notifications are entered into the 
system so  that WTO Members are able to review and comment on notifications submitted.  
 
MNE answer: Yes, it is correct that Montenegro has submitted  SPS notifications to the WTO 
Secretariat. However, in the meanwhile there were some adjustments with the WTO Secretariat 
and therefore they haven’t been documented in the WTO IMS yet.  Once they are finalized, it will 
be available in the system so that WTO Members are able to review and comment.  
 
3.3.6.2 Copyright and related rights  
• Please provide more details on  the copyright registration function (such as what legal 
benefits accrue for presumably voluntary registration, how many registration claims are 
received and issued each year).    
 
MNE answer:  Copyright law prescribes that in order to secure evidence of th eir copyright and 
related rights right holders may deposit copies of their protected matter with the competent 
authority (IP Office). The competent authority shall keep the register of deposited copies by 
categories of copyright works and by subject of rel ated rights. The rights with respect to deposited 
protected matter shall belong to the persons who are entered in the register as their holders until 
proven otherwise. A conscientious person who has infringed somebody's copyright or related right 
relying o n the accuracy of register data shall not be liable for any damages. In 2014 there were 
30, in 2015 and 2016 22, and in 2017 27 claim s for the deposit and entering into the Register . The 
number of issued certificates was 29 in 2014, 22 in 2015, 19 in 2016 and 27 in 2017.  
 
Follow up:  Could more detail be provided about under what circumstances a “conscientious 
person” who infringed shall not be liable for damages?   Has there been any litigation involving 
cases where an infringer relied on copyright registra tion data?  
 
MNE answer:  Montenegrin Copyright law only prescribes that conscientious person who has 
infringed somebody's copyright or related right relying on the accuracy of register data shall not be 
liable for any damages. This law doesn't contain more detailed provisions on this issue. There were 
no litigation involving cases where an infringer relied on copyright registration data.  
 
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