WT/TPR/M/297/Add.1  
13 January 2015  
(15-0210)  Page: 1/64  
Trade Policy Review Body 
24 and 26 September 2014 Original: English  
anglais  
inglés  
 
  TRADE POLICY REVIEW 
MONGOLIA  
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mrs. Mariam MD Salleh (Malaysia) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by Mongolia.1 
 
 
Organe d'examen des politiques commerciales 
24 et 26 septembre 2014 
EXAMEN DES POLITIQUES COMMERCIALES 
MONGOLIE  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Présidente: S.E. Mme. Mariam MD Salleh (Malaisie) 
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 Mongolie.1 
 
 Órgano de Examen de las Políticas Comerciales 
24 y 26 de septiembre de 2014 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
M
ONGOLIA  
ACTA DE LA REUNIÓN 
Addendum 
Presidenta: Excma. Sra. Mariam MD Salleh (Malasia) 
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 Mongolia.
1 
 
                                               
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/297/Add.1 
 
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  TRADE POLICY REVIEW OF MONGOLIA 
24 AND 26 SEPTEMBER 2014 
Replies provided by Mongolia to their advance written questions 
CHINA ......................................................................................................................... ..... 3 
CANADA ........................................................................................................................ ... 6 
ADDITIONAL QUESTIONS FROM TH E GOVERNMENT OF  CANADA ................................... 10  
EUROPEAN UNION ......................................................................................................... 12  
AUSTRALIA .................................................................................................................... 25 
COLOMBIA ..................................................................................................................... 29 
UNITED STATES ............................................................................................................. 34  
ADDITIONAL FOLLOW-UP QUESTIONS FROM THE UNITED STATES ................................ 44  
TURKEY ........................................................................................................................ .. 45 
CHINESE TAIPEI ............................................................................................................ 47  
BRAZIL ........................................................................................................................... 52  
ADDITIONAL WRITTEN QUES TIONS FROM BRAZIL ........................................................ 54  
THAILAND ......................................................................................................................  55 
ADDITIONAL WRITTEN QUESTI ONS FROM TH AILAND ................................................... 60  
JAPAN ......................................................................................................................... ... 61 
REPUBLIC OF KOREA ...................................................................................................... 62  
THE RUSSIAN FE DERATION............................................................................................ 64  
 
 WT/TPR/M/297/Add.1 
 
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  CHINA 
WTO TRADE POLICY REVIEW OF MONGOLIA 
3-5 June 2014, Geneva 
Questions from China 
Questions based on Report by the Secretariat (WT/TPR/S/297) 
Trade Policies and Practices by Measure 
Page 23, para.3.3 
The Report states that the Customs Law and the Law on Customs Tariffs and Duties, and their 
implementing regulations, “were last revised in 2008 to apply a risk-management system, which 
enabled, inter alia, accepting electronic copies of documents, adopting ‘preliminary customs declaration’, allowing one customs declaration set for several shipments or numerous items 
shipped together”.  
China believes that it is a critical step to ap ply a risk-management system in order to promote 
trade security and facilitation through better tack ling with growing challenges posed by exploding 
business load and limited administrative capacity. 
Questions: 
Since the effective implementation of a new risk-management system demands reform and 
adjustments by the Mongolian Government to its customs organizational structure, the 
management regime and administra tive procedures, China wishes to learn more about the latest 
developments and achievements in this regard. 
ANSWER:  Mongolia has acceded to a number of major international conventions on the 
streamlining and harmonization of border procedur es and the improvement of transit systems with 
neighbouring countries including the Revised Kyoto Convention on the Simplification and 
Harmonization of Customs Procedures and the harmonized commodity description and coding 
system nomenclature for the classification of all products imported into and exported from the 
country. The Customs General Administration of Mongolia  has been engaged globally with the Customs 
community through the World Customs Organisation (WCO) and through a tripartite agreement 
with the Dutch Tax and Customs Administration and has committed to meeting international and 
regional standards. Mongolian Customs signed letter of intent committing to start the process of implementing the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade in 
June 2005. 
The Customs General Administration of Mongolia has demonstrated a strong commitment to reform and modernization, especially in relation  to implementing risk management. Evidence of 
this is the Risk management selectivity module of the Customs Administrative Information System 
(CAIS). Mongolian customs has made significant positive trade facilitation steps. It currently manages the 
flow of trade through electric input of Customs information by brokers together with a manual 
process for clearance at the various Customs checkpoints. It has non-intrustive inspection capabilities both in terms of mobile and container x-ray, with the latter located at principal border 
crossings and in the capital city. Non-intrusive inspection (NIII) technology, CCTV surveillance, 
targeted interventions and post-border actions operat es as part of an integrated risk management 
system. Moreover, Mongolian Customs continue to focus on completing a more integrated and layered risk 
management process that can better manage future  growth in trade and passenger volumes. In 
particular: 
 Expand the strategic plan to now include specific organizational performance indicators that 
can measure efforts toward strategic action plan objectives; 
 Refine organizational risk management ro les, responsibilities and communication; and 
 Continue attemps to bring other border control agencies toward coordinated and 
intelligence-driven/ shared information border control decisions.  
Mongolian Customs consider that, in terms of supporting elements that will facilitate the move 
towards a more integrated and layered risk mana gement system driven by intelligence, there are WT/TPR/M/297/Add.1 
 
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  three means – organizational management, a skilled workforce with appropriate equipment and 
environment, and coordinated border management. In terms of the skilled workforce, there is a very strong understanding by individual officers across the organization. Almost all officers have received training in the CAIS system and risk 
management. Under the tripartite agreement between the CGAM, Dutch Tax and Customs and the 
WCO, a number of officers received risk manage ment and risk assessment training. These officers 
were then deployed at Customs Houses and control posts to pass on information gained at these 
training workshops. 
Since 2005, a well-developed post-clearance audit (PCA) capability provides a good starting point for developing and maintaining a systematic and organization-wide understanding of industry and 
particularly the behaviour of individual clients. With Risk Management Division cooperation, PCA 
supports targeted intervention at the border based on systematic audit reporting of “poor” or 
unusual behaviour. This in turn, will support decisi ons related to establishing a preferred importer 
(‘trusted trader’) type scheme for those audits veri fying or identifying consistent “good” behaviour. 
A combination of factors has led to Mongolian Customs making significant progress over the past 
years. There are some internal and external el ements. The summary below may not be exhaustive 
nor in order of importance other than the first two dot points: 
 Political support and confidence; 
 Strong and visionary leadership; 
 Professional supporting management group; 
 Planning with clear objectives and roles; 
 Open and constructive dialogue with stakeholders; 
 Funding linked to specific outcomes; 
 Credible and experienced expert advice; 
 Multiple contracts by experts with key implementation personnel; and 
 Real change – structural, legislative, procedural, infrastructure and cultural. 
Within public sector, the controlling agencies, incl uding customs, play a vital part in the trade 
facilitation regime, especially with regard to the clearance of cargo and the lowering of business 
costs. The key bodies involved in trade facilitation consist of the following ministries and other government agencies: 
 Mongolian Customs General Administration 
 Ministry of Roads, Transport and Tourism 
 Ministry of Nature and green development 
 Ministry of Education, Science and Culture 
 Ministry of Food and Agriculture 
 Ministry of Health 
 Ministry of Finance 
 State Specialized Inspection Agency 
 Railway Authority 
 Civil Aviation Authority 
 Foreign Investment and Foreign Trade Agency 
Private sector organization involved in trade facilitation include the Mongolian National Chamber of 
Commerce and Industry, the Freight Forewarders A ssociation, transport and logistics companies, 
such as Tuushin Company, Mongol Trans Compan y, Mongol Express, Road-Transport 5 Company 
and Mon Logistic, and associations of importers and exporters. WT/TPR/M/297/Add.1 
 
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  Page 30, para.3.43 
The Report states that“[a]s in the case of imports, the customs automated information system (CAIS) offers electronic clearance and allows exchange of information domestically and with Mongolia's trading partners through the national single window…”. China has been benefiting from 
its great efforts to modernize and upgrade the customs information system and greatly raised the 
efficiency of its customs clearance. In the same vein, China welcomes the customs reform and trade facilitating efforts made by the Mongolian Government to improve its customs 
administration. 
Questions: 
Please provide more detailed information on the implementation of CAIS and the “national single 
window” in Mongolia ，particularly the improvement in  information exchange area. 
Does the Government plan to take any customs initiatives or concrete measures to facilitate 
border trade with neighboring countries? 
ANSWER: The CAIS /Customs automated data processing system /was introduced in the 
Mongolian Customs in 2009 and its software is being developed continuously through 2014. Since 2010, Mongolian Customs has greated possibility of connections of CAIS with other organizations 
and began exchanging foreign trade data and total turnover statistics between government 
agencies by XML form. We launched preliminary works of exchanging foreign trade related information with Russia starting from 2013, and working together on finding network and technology solutions to exchange information for 24/7. In the first quarter of 2014, Mongolian 
Customs has successfully implemented pilot-testing of transferring customs export manifest and 
customs export clearance into paperless format Gashuunsukhait and Shieekhuren customhouse. Furthermore, advancement of manifest and clearance into paperless form of all crossing points 
bordering with China is in progress and expected to be implemented within this year.  
The working group of establishing Single window system has been created in Cabinet office of 
Government of Mongolia. With the framework of this program, the sub-working group to 
identifying and defining the foreign trade business processes is led by Customs General 
Administration.  WT/TPR/M/297/Add.1 
 
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  CANADA 
World Trade Organization 
Trade Policy Review of Mongolia 
June 3 & 5, 2014 
QUESTIONS FROM THE GOVERNMENT OF CANADA 
Report by the Secretariat – WT-TPR-S-297 
Part II. Trade and Investment Regime, 2.1 General Framework; 2.5 Investment Regime: 
paragraph 2.20, page 21: 
We note that the Government of Mongolia altere d some terms in the new Investment Law of 2013 
by reducing the number and range of stabilised fees and taxes relative to its predecessor the 
Foreign Investment Law of 1993.  
1. Could Mongolia provide some background on this decision?  
ANSWER:  Since the adoption of the new Investment law of 2013, both foreign and domestic 
investors consider/agree that a positive step in streamlining the legal environment for foreign investment in and creating more favourable busine ss-friendly conditions in Mongolia. For instance: 
 Some types of permission and registration are abolished and market is more opened and 
liberalized 
 Replaced the investment certificate with the State registration process under GASR and 
shortened the period required to start business by up to 30 days 
 Without discrimination to equal legal protection and support is afforded to both foreign and 
national investors under the new law 
 The investment promotions for investors consist of tax and non-tax incentives as well as 
stabilization certificate and investment agreem ent are the main types of tax promotion.  
Part II. Trade and Investment Regime, 2.1 General Framework; 2.5 Investment Regime: 
paragraph 2.20, page 21: 
We note that under the new Investment Law of 2013, the Government of Mongolia differentiates 
between Mongolian and foreign-invested entities  in terms of minimum requirement for paid-in 
capital.  
2. Could Mongolia provide some background on this decision? 
ANSWER:  According to the previous Investment Law of 1993, the foreign invested company was 
considered as an entity established in accordance with the legislation of Mongolia, of amount of minimum investment of US$100 thousand or equivalent amount in Mongolian tugriks in Mongolia 
for each foreign invested company. The new Investment Law of 2013 is replaced it by new 
regulations which is each foreign investor to invest at least US$100,000. Thus it’s considered that investment could be more actual and having quality. This qualitive increase is also aimed to leave space for the SME’s to be more competitive.  
Part III. Trade Policies and Practices by Me asure, 3.1 Measures Directly Affecting 
Imports; 3.1.4 Tariffs, 3.1.4.2 Tariff structure: paragraph 3.19, page 25: 
According to the authorities, while the relevant clause was eliminated from the revised Customs 
Tariff Law in 2008, in practice, the Government may, at its discretion, reduce or increase an applied tariff rate by up to 50% of the rate  under Mongolia's tariff schedule, upon the 
recommendation of the Customs Tariff Council. 
3.  Could Mongolia elaborate under what conditions could the Government reduce or increase 
an applied tariff rate by up to 50% of the rate under Mongolia's tariff schedule. WT/TPR/M/297/Add.1 
 
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  ANSWER:  Minister of Finance chairs the Customs Tariff Council. Secretary of the Council is 
Ministry of Economic Development and members from all Ministries. Secretary and members shall represents their sectors and submit proposal to the council. For instance, some VAT exception on certain technologies and machineries for SMEs electricity installation etc. Government may reduce 
o r  i n c r e a s e  a n  a p p l i e d  t a r i f f  r a t e  b y  u p  t o  5 0 %  o f  t h e  r a t e  u n d e r  M o n g o l i a ' s  t a r i f f  s c h e d u l e .  
However, we have not such a case.  
Part III. Trade Policies and Practices by Me asure, 3.1 Measures Directly Affecting 
Imports, 3.1.4 Tariffs, 3.1.4.4 Applied MFN rates: paragraph 3.23, page 26: 
For 60 tariff lines, the applied MFN rate (5%) exceeds the corresponding bound rate (0%). 
4.  When does Mongolia anticipate the rectification of these tariffs to be complete, bringing 
them within its WTO commitments? 
ANSWER:  These 60 Tariff lines consisted of 18 tariff lines of HS29, 42 tariff lines of HS30. In 
order to eliminate MNF tariff on certain chemical and pharmaceutical products, Government of Mongolia submitted its proposal to the Parliament. Proposal on MFN tariff is expected to be 
discussed within the Year 2014.  
Part III. Trade Policies and Practices by Meas ure: 3.3 Measures Affecting Production and 
Trade, 3.3.1 Taxes and incentives, 3.3.1. 3 Excise tax: paragraph 3.65, page 33: 
In accordance with the Excise Tax Law 2006, excise taxes are levied on certain technical devices, 
items related to gambling, and individuals and legal entities that conduct certain activities (Table 
3.5). They apply to goods produced in Mongolia and to imports; different rates may apply to domestic goods and imports. 
5.  Could Mongolia explain the conditions under which the Government could apply different 
excise duty rates to domestically produced and imported goods? How are these policies consistent with Mongolia’s GATT Article III commitments?  
ANSWER:  Different excise tax only applied on only alcohol beverages and wines. Due to special 
Government policy on Alcohol consumption, we try to control production of alcohol beverages. It consistent of different stages. First stage was adopted in November 2012 as a tariff increase on 
imported alcohol beverages and same time we have  taken measures on licensing domestic service 
supplier with alcohol. Licenses for shop, restaurants, cafes are restricted and in terms of open times and residents of an area. It will continue to increase domestically produced alcohol 
beverages as well. Measures are expected to be implemented from beginning of next year.  
Part III. Trade Policies and Practices by Me asure: 3.3 Measures Directly Affecting 
Production and Trade; 3.3.3 State Trading, State Owned Enterprises, and Privatization: 
paragraph 3.72, page 36: 
It is our understanding that while the report in dicates that the private sector’s share of GDP 
increased to approximately 80% of GDP in 2013, stat e equity participation in industry in Mongolia 
has actually increased since the summer of 2012. According to some estimates, the state’s share has reached 33% of GDP with 14 new state-owned enterprises created since summer 2012 in 
major industries such as extractives, power generation and distribution, and railways. The power 
and rail sectors continue to be almost entirely state-owned and state-operated.  
6. Could Mongolia provide an update on the go vernment program to reduce its involvement in 
various sectors of the economy as outlined in s.3.72 of the Secretariat report? 
ANSWER: Power and railway sector is strategic sector for Mongolia. Therefore, major players in 
these sectors are wholly or partially state owned entities. State property Committee prioritizes its privatization guidelines every year and gets appr oval from Parliament. Government of Mongolia 
aims to reduce its involvements in various sectors. Privatization guidelines for next year are not 
yet passed by Parliament.  WT/TPR/M/297/Add.1 
 
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  Part III. Trade Policies and Practices by Me asure: 3.3 Measures Directly Affecting 
Production and Trade; 3.3.4 Government Procurement: paragraph 3.78, page 37: 
We note that Canadian companies have experien ced unorthodox treatment in the area of public 
tenders, particularly in the railway sector. 
7. Increased predictability, transparency and fairness in government procurement procedures 
helps ensure best value for government resources, increases the confidence of suppliers and 
underlines the importance of the rule of law. Does Mongolia intend to undertake any measures to 
modernize/improve its procurement practices to ensure greater transparency and procedural 
fairness? If so, can Mongolia indicate the specific measures or actions it plans to undertake? 
ANSWER:  The Public Procurement Law principles pr ovide transparency, equal opportunity to 
compete, economy and efficiency, and responsibility.  In accordance with article 4 of the PPLM, all 
procuring entities have to apply the law principles while organizing biddings.  
Part III. Trade Policies and Practices by Me asure, 3.3 Measures Directly Affecting 
Production and Trade; 3.3.4 Government Procurement: paragraph 3.77, page 37 
It is noted that Mongolia is not a signatory to the WTO Agreement on Government Procurement; it 
is an observer in the GPA Committee. 
8. Does Mongolia envisage becoming a Party to the WTO Plurilateral Agreement on 
Government Procurement? If so, when? 
ANSWER:  Government of Mongolia is planning to make survey to joining the GPA but currently it 
is impossible to express the exact time of the initial offer.  
Part III. Trade Policies and Practices by Me asure, 3.3 Measures Directly Affecting 
Production and Trade; 3.3.4 Government Procurement: paragraph 3.81, page 37 
The Secretariat reports that domestic suppliers receive a 10% margin of preference for goods and 
7.5% for works.  
9.  Could Mongolia provide additional informatio n on how such preferences are applied? Is there 
a list of specific eligible products? How is th e preference applied when  evaluating the bids? 
ANSWER:  Stated in article 10 of the PPLM, “The procuring entity may grant a margin of 
preference to the following bodies in evaluating tendering proposals: 
10.1.1.A tenderer tendering to supply goods of Mongolian origin; 
10.1.2. The following bodies tendering to execute at least 50% of works independently: 
10.1.2. a. a citizen or legal entity of Mongolia; 10.1.2. b. a foreign investment legal entity registered in Mongolia at least 50% of whose equity is 
owned by a Mongolian citizen and/or legal entity; 
10.1.3. an entity that makes the largest use of locally produced goods, materials and services; 10.1.4. an entity that employs the largest share of local labour. 10.1.5. Not less than 90% of the workforce of a legal entity consists of Mongolian citizens.  
Stated in provision 10.2 of the PPLM, In case of  granting a margin of preference to tenderers 
specified in provisions 10.1.1 and 10.1.3 of this law, the tendering price shall be discounted by 
10% for goods of Mongolian origin and by 7.5% for works executed by tenderers specified in 
provisions 10.1.2 and 10.1.4, respectively for th e purpose of comparing with tendering prices of 
other tenderers. 
10.  Could Mongolia explain whether this law applies to all Government of Mongolia ministries 
and agencies or does it only apply to procurements by specific bodies? 
ANSWER:  In accordance with article 4 of the PPLM, all procuring entities have to apply this law.  
4.1.1. a legal entity with state and local ownership; WT/TPR/M/297/Add.1 
 
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  4.1.2. a legal entity with partial stat e and local ownership of 50% or more; 
4.1.3. the project-implementing entity defined in  provision 3.1.5 of the Law on coordination of 
foreign loans and assistance. 
11.  In the future, does Mongolia envisage reduci ng or eliminating the preference regime enjoyed 
by domestic suppliers? If yes, when? 
ANSWER:  Currently Government of Mongolia does not have any envisage reducing or eliminating 
the preference in Public Procurement. 
Part IV. Trade Policies by Sector: 4.1 Agri culture; 4.1.1 Features: paragraph 4.5, 
page 42: 
We note that the current system does not encourage long term investments as land-use rights 
certificates are issued for relatively short peri ods of time – typically between 5-15 years with 
limited extensions. In addition, foreign legal or ph ysical persons are not allowed ownership of land 
as free-hold titles to land in traditional western sense do not exist in Mongolia. This creates difficulties in sourcing long term finance for major infrastructure projects. 
12. Does the Government of Mongolia have plans to alter the current land ownership/use rights 
system?  
ANSWER: According to Provision 44.5 of Law on Land, Parliament transferred its right to the 
Government to make decisions to give a land to use by lease and concession. In terms of Mineral ore, land leasing can be up to 30 years with the extensions of 20 years.  WT/TPR/M/297/Add.1 
 
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  ADDITIONAL QUESTIONS FROM THE GOVERNMENT OF CANADA 
World Trade Organization 
Trade Policy Review of Mongolia 
September 24 and 26, 2014 
 
 
ADDITIONAL QUESTIONS FROM THE GOVERNMENT OF CANADA 
Part III. Trade Policies and Practices by Me asure: 3.3 Measures Directly Affecting 
Production and Trade; 3.3.3 State Trading, State Owned Enterprises, and Privatization: 
paragraph 3.72, page 36: 
Canada’s Original Question: 
It is our understanding that while the report in dicates that the private sector’s share of GDP 
increased to approximately 80% of GDP in 2013, stat e equity participation in industry in Mongolia 
has actually increased since the summer of 2012. According to some estimates, the state’s share has reached 33% of GDP with 14 new state-owned enterprises created since summer 2012 in 
major industries such as extractives, power generation and distribution, and railways. The power 
and rail sectors continue to be almost entirely state-owned and state-operated.  
6. Could Mongolia provide an update on the go vernment program to reduce its involvement in 
various sectors of the economy as outlined in s.3.72 of the Secretariat report? 
ANSWER: Power and railway sector is strategic sector for Mongolia. Therefore, major players in 
these sectors are wholly or partially state owned entities. State property Committee prioritizes its 
privatization guidelines every year and gets appr oval from Parliament. Government of Mongolia 
aims to reduce its involvements in various sectors. Privatization guidelines for next year are not yet passed by Parliament.  
ADDITIONAL QUESTION: Canada follows with interest Mongolia’s program to reduce 
Government involvement in various sectors of the economy, and looks forward to the 
establishment of the State Property Committee’s privatisation guidelines. Could Mongolia provide a timeline on when the committee might establish these guidelines and make them publicly 
available? 
ANSWER:
 The private sector shares around 80% in GDP today. This is a significant share in the 
economy. However, the Government of Mongolia co ntinues to undertake privatization measures of 
state-owned enterprises. It has planned to priv atize 22 state-owned large enterprises between 
2013 and 2016; 13 of them should be privatized fully, and state ownership should be reduced in 
nine.  
List of the entities should be fully pr ivatized within 2013-2016 are as follows: 
1. Erdenet-Bulgan energy distribution network SoE 
2. “Tsagaan shonhor" State owned printing company 
3. “Orgil spring sanatorium" in condition of not changing its original purpose 
4. “University of Movie and Art" LLC; 
5. ”Auto impex” SoE; 
6. “Khutul cement” SoE; 
7. “Monsam” (Medicine and vitamin) SoE; 
8. “ Road equipments rental” SoE; 
9. Traditional medical science, technology, manufacturing corporation- in condition of not 
changing its original purposes 
10. Erchim corporation (Science and technological study center of energy sector) in condition of 
not changing its original purposes WT/TPR/M/297/Add.1 
 
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  11. Armono corporation (Leather, hide technological and scientific study center) in condition of 
not changing its original purposes 
12. Agricultural technical  science, technology, manufacturing affiliation in condition of not 
changing its original purposes 
List of the entities, that state ownership should be reduced within 2013-2016 are as follows: 
1. The Mongolian Stock Exchange;  
2. Telecom Mongolia;  
3. The Mongolian Airlines;  
4. Information and Communication Network;  
5. Crop Promotion Fund;  
6. The Mongolian Agricultural Commodity Exchange; 
7. The Mongol Post; 
8. Shivee-Ovoo coal mines; 
9.  Baganuur coal mines; 
Part III. Trade Policies and Practices by Me asure: 3.3 Measures Directly Affecting 
Production and Trade; 3.3.4 Government Procurement: paragraph 3.78, page 37: 
Canada’s Original Question : 
We note that Canadian companies have experien ced unorthodox treatment in the area of public 
tenders, particularly in the railway sector. 
7. Increased predictability, transparency and fairness in government procurement procedures 
helps ensure best value for government resources, increases the confidence of suppliers and 
underlines the importance of the rule of law. Does Mongolia intend to undertake any measures to modernize/improve its procurement practices to ensure greater transparency and procedural 
fairness? If so, can Mongolia indicate the specific measures or actions it plans to undertake? 
ANSWER:  The Public Procurement Law principles pr ovide transparency, equal opportunity to 
compete, economy and efficiency, and responsibility.  In accordance with article 4 of the PPLM, all 
procuring entities have to apply the law principles while organizing biddings.  
ADDITIONAL QUESTION : Does Mongolia have a formal recourse or complaint resolution 
mechanism available to both domestic and international bidders on public tenders? 
ANSWER:  According to the sub-clause 54, 55, 56 of PPLM, there are 4 government bodies have a 
right to review complaints from bidders in each occasion.  
 The procuring entities have to review bidder’s complaint before making a decision which is 
authorization to enter into a contract in 10 working days. 
 Next government body is Authority for Fair Competition and Consumer Protection, it 
mandatory reviews complaint which related to Fair Competition Law of Mongolia before ends 
bid submission time in 14 calendar days.  
 Moreover, the Ministry of Finance reviews bidder’s complaint in following occasions; if 
procuring entity either doesn’t review the complaint and reply or bidders don’t agree with 
decision; when procuring entity already had made a decision which is authorization to enter into a contract. But bidders must submit their complaints within working days since as 
mentioned occasions.  
 Finally, the Court reviews all complaints from bidders .  WT/TPR/M/297/Add.1 
 
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  EUROPEAN UNION 
Mongolia TPR 
EU Questions WT/TPR/S/297 – WTO Secretariat's Report 
2.4.2 Other regional and bilateral agreements 
Page 20, Table 2.4 Bilateral trade-relate d agreements since accession to the WTO 
According to the table, in September 2013 Mongolia has signed with the US an agreement on 
regulatory transparency whereby draft laws affecting bilateral investment and trade will be 
provided in English 60 days before public comments are due. EU question 1: Could Mongolia confirm that English version of draft laws and public comments will be available to foreign stakeholders of all nationalities? 
ANSWER: Parliament of Mongolia not yet have ratified Agreement on Transparency in matters 
related to International trade and investment between Mongolia and U. S of America. Therefore the above mentioned agreement is not official according to the Law on International agreement.  
2.5 Investment Regime 
Page 21, paragraph 2.20 
Reference is done to the new Investment Law of 2013 entered into force on 1 November 2013. It 
is EU understanding that Article 3.1.5 of this law foresees the obligation for individual foreign 
investors to invest at least USD 100 000. It would mean for a same company that several time USD 100 000 would need to be invested. 
EU questions 2 to 4:  
Could Mongolia clarify whether our understanding is correct? Could Mongolian authorities clarify 
which is the rationale for this provision?  
ANSWER:  In Article 3.1.5 of new Investment Law of 2013, “A business entity with foreign 
investment” means an entity that is established under the laws of Mongolia, and it's 25% or more 
of the shares are owned by foreign investor and the amount of the investment of each foreign 
investor is more than US$100,000, or the equivalent amount of tugriks.” 25% or more of the 
shares are owned each foreign investor invests minimum US$100,000 in their foreign invested 
company.  
Do they not fear that it could limit investment from SMEs into Mongolia, and limit cooperation 
opportunities for Mongolian SMEs? Are there measures being developed to limit this risk? 
ANSWER:  New investment law aims to promote investment that has tangible outcome towards 
the creation of prosperity in each sector of the country and covers the substantial concern to boost 
small and medium sized business to be flourished  through the investment. Government is taking 
major actions to foster the SME through various programmes including tax facilitation and other 
needed to support for its continues contribution to the economy.  
Page 21, paragraph 2.22 
Reference is done to the 'Invest Mongolia Agency'. The EU companies have raised a number of 
questions with the new Agency; in particular, all attempts to seek for consultancy have given no results. 
EU questions 5 to 10: Has the strategy and the objectives of this Agency been defined more 
precisely in a document other than the 2013 Mongolia Law on Investment? 
ANSWER:  The Strategy and objectives of the Invest  Mongolia Agency were adopted by the 
resolution of the Minister of Economic Developmen t of Mongolia. Hence, the function of the Agency 
is clearly defined in the Law on Investment and Agency itself is accountable for the proliferation of 
its work scope which currently produc ing several documents respectively.  WT/TPR/M/297/Add.1 
 
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  Is export promotion also included in the mandate of this agency?  
ANSWER: Export promotion is not included in the mandate of the Agency. However, the Agency 
operates to promote export indirectly.   
Could Mongolia clarify the actual role of the Agency vis-à-vis foreign companies seeking for advice 
and assistance?  
ANSWER:  It would be challenging to foreign investors to make a decision where and how to 
invest, or access foreign market due to lack of sufficient information regarding market, legal 
framework and policy directions as well as the culture. In order to help investors to facilitate 
decision and simplify investment process, Invest Mo ngolia Agency’s role is to being a government 
arm to provide necessary information and advisory services via one stop-shop as depositary of all key economic and social information, and help and connect, arrange meetings with relevant 
Authorities or potential business partners upon the request. In addition, IMA is implementing a 
pilot project on Investor Grievances Management system. The objective of the project is probe a 
launch of a service to receive investor’s grieva nces and feedbacks on investment hardship, and 
take measures to make sure those issues to be introduced at the decision making level for further 
arrangement. Another service is to issue tax stabilization certificate to investors after the assessment.  
In particular, how does the Agency deal with the promotion and the regulation of marketing 
investment in Mongolia, including issuing tax stabilization certificates?  
ANSWER: Besides having the philosophy to break the conventional understanding on the 
Government bureaucratic way of handling matters, IM A is dedicated to render services to investors 
to make sure their investment facilitated with the most connected and efficient manner as well as 
promoting. The basic attitude of IMA’s promotion is aggressive approach when it comes to promotion either in domestic or international field through off and online methods. The cost 
effective but post effective method is currently the major principle as to probe opportunities to 
advertise Mongolia in abroad through on sight attendance to the substantial events and b2b 
meetings. Posting cover stories, playing investment advertisement on major media is in the 
process as well as direct interviews and deliverin g speeches and presentation in frequent manner.  
Does Mongolia provide incentives to attract fore ign investment? If so, what kind of incentives? 
ANSWER : In New Investment Law of 2013, without discrimination to equal legal protection and 
support is afforded to both foreign and national investors. The investment promotions for investors 
consist of tax and non-tax incentives as well as stabilization certificate and investment agreement 
are the main types of tax promotion. Project implementing legal entity who meets the criteria specified in the Investment Law has a 
right to request to take a stabilization certificate from the state administrative body in charge of 
investment affairs.  The rates of the following taxes, fees and duties shall be stabilized under the stabilization 
certificates during their validity period:  
 corporate income tax;  
 customs duty;  
 value-added tax;  
 mineral resource royalty . 
Investors who is to invest more than MNT500 billion has a right to make a request with the 
purpose of stabilizing the tax and business activities environment to the Government of Mongolia. 
And tax incentive for investment:  
Tax incentives shall be rendered to investors in the following types:  
 to exempt from taxes;  
 to render tax incentive;  WT/TPR/M/297/Add.1 
 
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   to calculate under the accelerated method the depreciation expense to be deducted from the 
taxable revenue  
 to calculate the loss to be deducted from the taxable revenue by transferring to the future 
revenue;  
 to deduct the employee training expense from the taxable revenue. 
 Imported machineries and technical equipment may be exempted from the customs duty 
and VAT rate may be zero-rated during the construction works in the following cases:  
 to build construction materials, oil and agricultural processing and export product plants;  
 to build plants to use nano, bio and innovation technologies;  
 to build power plant and railway .  
These tax incentives for investors specified in the Investment Law shall be regulated by 
legislations on taxation. 
Non-tax promotion for investment:  
 to put land lease and use for up to 60 years on the basis of a contract and to extend the 
contract duration once for up to 40 years under the contract`s primary condition;  
 to render support to the investors who are to make investments to the activities of free 
zones, production and technological park and to serve with alleviated regime of registration 
and checkpoint;  
 to render support to implement creation projects in the infrastructure, sciences and 
educational sectors, to increase the number of foreign workforces and specialists, to exempt them from employment fees and to grant the required permits at eased regime;  
 to render support to carry out innovation projects and to guarantee the financing for 
production of export oriented innovation products;  
 to provide the foreign investors, who have made investment to Mongolia, and their family 
members with multiple visas and residential permissions under the applicable laws of 
Mongolia.  
 Non-tax investment incentives shall be regulated in accordance withrelevant sector’s 
legislations in force.   
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures Directly Affecting Imports 3.1.1 Customs procedures and requirements 
Page 23, paragraph 3.1 
Under this paragraph, there is no mention of the role and practice followed by the General Agency 
of Specialised Inspections (GASI). 
EU question 11: Could Mongolia elaborate more on the role and the practice followed by the 
General Agency of Specialised Inspections (GASI)? 
ANSWER : Action Strategy 1 and 2, the policy objectives  the state control over the implementation 
of legislation and implementation in accordance  with international standards, and to provide 
technical guidance and direction control and inspection staff professional capacity building, Inspection and industry laws and regulations, na tional standards and regulations and procedures 
for all activities to assist in the development and implementation of the basic functions have .  
Finance, Labor and Social Welfare Inspection Agency 
Finance, labor and social security inspectorate of the budget and government loans and grants, 
state and local use, consumption, storage, protection, employment, occupational safety, and 
community and social insured assuring the creation of a favourable environment for any adverse 
impacts, and to prevent the risk of inspection in accordance with international standards and provide policy guidance and control policies, strategies, programs, plans and projects the 
professional system of control, strategic planni ng and to comply with the principles-oriented 
functions.  WT/TPR/M/297/Add.1 
 
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  Health, education, cultural, and scientific monitoring 
Health, education, culture and science control the nature of the adverse effects on human health 
and environment and detect food security-related factors and their consequences due to disease, disease prevention, and guaranteed quality drugs and medical care to citizens services, education, 
culture, science, accessible and high quality servic es, public education, and cultural needs, to 
create a favourable environment for any adverse impacts, and to prevent the risk of inspection in accordance with international standards and provide policy guidance and control sector policy, 
strategies, programs, plans, projects and professional development of the system of control, 
strategic planning and to comply with the principles-oriented functions. 
Infrastructure Inspection 
Control of the building of infrastructure, roads,  transport, energy, information, communication, 
and the lift mechanism and measurement industry to create a favourable environment, public 
health, and a safe working environment and to ensu re the right to live, and any negative impacts 
and risk controls to prevent inspection in accord ance with international standards, implementation, 
and provide policy guidance and control policies, strategies, programs, plans and projects the 
professional system of control, strategic planni ng and to comply with the principles-oriented 
functions. 
Environment and Tourism, Geology and Mining Inspection Agency 
Environment and Tourism, Geology and Mining Inspec torate of ecological imbalance and to prevent 
adverse effects on the environment, geology, mi ning, industrial safety and public health, and 
create a safe environment, to ensure a favour able environment, and any negative impacts and 
risks aimed at monitoring the implementation of international standards and policy guidance and 
control policies, strategies, programs, plans and projects for the professional system of control, strategic planning and to comply with the principles-oriented functions. 
Food, Agriculture, Industry Service Of Control Area 
Food, agriculture, industry and services, control,  veterinary and plant protection and quarantine, 
livestock breeding and crop varieties, quality cont rol, manufacturing, services and trade to create 
a favorable environment for any adverse impacts, and risk controls to prevent inspection in 
accordance with international standards, implem entation, and provide policy guidance and control 
policies, strategies, programs, plans and projects the professional system of control, strategic 
planning and to comply with the principles-oriented functions. 
Border inspection office 
Border Inspection of the Mongolian national legislation and international conventions and agreements, and implementation of international standards on human quarantine diseases and 
animal "A" list of infectious and communicable diseases, and plant quarantine diseases, insects 
and rodents animals and weeds international borders and through his country and foreign countries to prevent the spread of products, product quality and safety characteristics, satisfaction, 
and any negative impacts and risks in accordance with international standards, border inspections 
to prevent and control groundwater site implemen tation and provide policy guidance and control 
policies, strategies, programs, plans and projects the professional system of control, strategic 
planning and to comply with the principles-oriented functions. 
National food security LABORATORI 
May adversely affect human health and the environment, chemical, physical and biological factors in food, cosmetics, consumer products, drugs, and drinking water, crops, etc. is a modern way to 
accurately and quickly analyse high quality. 
SSIA food safety a national reference laboratory in accordance with the international laboratory accreditation system general requirements for the competence of testing and calibration 
laboratories MNS ISO-17025: 2007, ISO / IEC 17025:2007 international standard accredited 
laboratory in then. 
International test proficiency FAPAS-2007 Salmonella involved in microbiological screening test in 
a satisfactory rating from internationally recognized certificate is authorized laboratory. 
Food security, the national reference laboratory for the domestic industry and the import and 
export of all kinds of food, cosmetics, chemicals,  drugs, medical devices, and biologically active 
food additives, crop and seed materials, their ra w materials and products, etc., bacteriological and 
Chemical Toxicology, pharmacopeias, parazitologi bio test, phytosanitary and quality of seeds and WT/TPR/M/297/Add.1 
 
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  planting technology, mycotoxin and pesticide and nitrate residue analysis officer who provides 
accurate information. The capital city, Zamyn-UudAltanbulag border at and 13 provincial vocational laboratories under 
the control of technical assistance necessary reag ents, and is responsible for training the staff. 
3.1.5 Import prohibitions, restrictions, and licensing 
Page 26, paragraph 3.28 The report limits to mention that there has been no change in the list of prohibited goods since 
2005 and that according to the Customs Law, prohib ition or restriction of imports requires the 
authorization of Parliament. The EU would like raise the attention of Mongolia that is of the utmost importance to have in place a transparent and efficient regulatory framework governing their 
imports from third countries. 
Mongolia submitted its annual questionnaire in compliance with Art. 7.3 of the Import Licensing 
Agreement only in 2003. To present, the EU find s extremely difficult to understand and to know 
which are the import licensing procedures currently in place in Mongolia. Therefore: 
EU question 12: Could Mongolia clarify the overall legal framework governing the import licensing 
procedures; making specific reference to the lega l basis and clarifying whether they are automatic 
or non-automatic procedures? 
ANSWER: Depending on the type of goods to be imported, the licensing procedures are appointed 
to the related ministries. (Example: 1. Import license for Alcoholic beverage is issued at the Ministry of economic development, 2. For medicine, the license is issued at the Ministry of Health, 
etc.). 
Non-automatic. However, Single Electronic Wi ndow is planned to be implemented with the 
assistance of ADB in the near future. 
EU question 13: Could Mongolia clarify the overal l legal framework governing the imports of food 
and clarifying the rules set, in terms of import licensing, by the following piece of legislations: 
2002 Law on border prohibition and inspection of  animal and plant products; 2012 Food law; 2012 
Food Safety Law? 
ANSWER: Correct. Above mentioned legislations are all in force.  
EU question 14: Could Mongolia clarify, for each single measure in place, where (which source of 
information) governments and traders can find all the information related to the application of these licensing measure: the procedures for the su bmission of applications, the eligibility of the 
applicants, the administrative body to be approach ed, the basis for granting the license, the period 
for processing applications etc.? 
ANSWER: Government and traders can get access to the information through internet of the 
legislations, the authorized administrative body, the requirement for granting the license, and the 
period for processing applications. /www.legalin fo.mn/ However, the eligibility of information 
related to domestic procedures such as the review of application of importation license for Food 
products, the procedures for the issuance of license are not automized. 
EU question 15: Could Mongolia clarify, for the im ports of food products where (which source of 
information) governments and traders can find all the information related to the application of these licensing measure: the procedures for the submission of applications, the eligibility of 
applicants, the administrative body to be approach ed, the basis for granting the license, the period 
for processing applications etc.? 
ANSWER: Government and traders can get access to the information through internet of the 
legislations, the authorized administrative body, the requirement for granting the license, and the 
period for processing applications. /www.legalin fo.mn/ However, the eligibility of information 
related to domestic procedures such as the review of application of importation license for Food 
products, the procedures for the issuance of license are not automized. WT/TPR/M/297/Add.1 
 
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  Page 27, Table 3.2: Goods prohibit ed from exportation/importation 
EU questions 16 to 18: Could Mongolia confirm that table 3.2 is comprehensive and includes all the 
goods subject to an import and/or export prohibition? With reference to ferrous and non-ferrous metal (cast iron, iron, steel, copper, brass, aluminium or other alloys) scraps, which are not 
reported in the table, could Mongolia clarify whet her they are subject to any export prohibition? 
Should it be the case, could Mongolia submit the reasons justifying such prohibition under WTO rules? 
ANSWER: Referring to Resolution 46 of the Parliament which is the amendment of the Resolution 
5 of the Parliament of Mongolia states that the following goods and products are subject to 
prohibition of export: Ferrous and non-ferrous metal (cast iron, iron, steel, copper, brass, aluminium or their alloys) 
scraps, expect recyclable cans of beer or other drinks (beverages), ferrous and non-ferrous metals 
(casted) in ingots or other primary forms, spare parts made of ferrous or non-ferrous metals and 
lost their feasibility (not feasible for their intended use). 
3.1.8 Sanitary and phytosanitary requirements 
Page 30, paragraph 3.40 According to the report, Mongolia has not submitted any SPS notification to WTO. 
EU questions 19 to 21: Could Mongolia clarify how trading partners can be informed on all import 
conditions from Mongolia related to SPS measures? Could Mongolia indicate on whether SPS related import conditions are made publically available, and if existing, to provide the web links where this regularly updated information can be found? Could Mongolia clarify whether Mongolia 
follows the WTO SPS Agreement, in particular, with  regard to transparency requirements (which 
include notifications to WTO)? 
ANSWER: Ministry of Industry and Agriculture is in charge of submitting SPS notification to WTO. 
However due to lack of capacity, we were unable to  submit notification. We are working to improve 
the situations and train the officers in charge of SPS matters. Some information available on website of Veterinary and Breeding Agency: http://dvab.gov.mn/ ; and Ministry of Industry and 
Agriculture: http://www.mofa.gov.mn/new/ . 
3.2 Measures Directly Affecting Exports 
3.2.1 Export procedures and requirements Page 30, para 3.44 
The WTO secretariat report states that “Against the background of an increase in exports of 
mineral stock, in 2007 the Customs Central Laboratory started to analyse minerals, iron ores, and concentrates to determine an accurate custom s value of the mining exports, and to assess 
relevant taxes”. 
EU question 22: The EU would kindly request Mongolia to specify the taxes that are referred in this 
statement. In particular, according to information submitted in section 3.2.2 of report, minerals, 
iron ores and concentrates are not subject to expo rt taxes (see table 3.4 of the report). Therefore, 
could Mongolia confirm this information and reconcile this with the above mentioned statement on “relevant taxes”? 
ANSWER:  Relevant tax in above statement refers VAT, Income tax of entities. Until April 2014, 
VAT and Income tax is levied on reference pric e of minerals not on the contract price.  
3.2.2 Export taxes, charges, and levies 
Page 31, Table 3.4 Export taxes for ce rtain commodities, as of January 2014 
EU questions 23 to 25: Could Mongolia confirms that the table 3.4 is comprehensive and includes 
all the goods subject to an export tax?  
ANSWER: Mongolia confirms, that table 3.4 is comprehensive and includes all the goods subject 
to an export tax. WT/TPR/M/297/Add.1 
 
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  Could Mongolia clarify whether coal is subject to an export duty, tax or other charge?  
ANSWER: No, coal is not a subject to export tax and any other duties. 
Could Mongolia declare if other goods are subject to export duties, taxes or other charges but not 
reported in the table, clarifying in this case wh ich are the products concerned, their HS codes and 
the value of the tax applied? 
ANSWER: Yes, There are no other goods, which subject to export tax and not included in 
Table 3.4. 
3.2.4 Export support and promotion 
3.2.4.2 Free zones Page 32, paragraphs 3.52 – 3.54 See also Government report page 17, para graph 5.4 Free Trade and Economic Zones 
Reference is done to the “Free Zones” and to the announcement that the Government is working 
towards establishing free trade and economic zones, as well as industrial and technological parks. 
EU questions 26 to 28: Please provide more information on the way Free Zones operate. In 
particular, could Mongolia clarify which are the measures taken for attracting more investments 
and promote export-oriented industries?  
ANSWER: As provided in the Redrafting of Law on Free Zone, the following incentives would be 
granted to the entities conducting business in the free zone: 
 0% rate for VAT on the goods are produced in the free zone; 
 0% rate for export tax; 
 0% rate for income tax to the entities which are investing to the export-oriented industry for 
the first 5 years of the operation and for the following 3 years the income tax would be 
facilitated with 50% rate; 
 0% rate for income tax to the entities which are enterprising innovation and high 
technology-based industry for the first 5 years of the operation; 
 0% rate for property tax on the facilitations constructed for the purpose of the 
industrialization .  
Could Mongolia list the relevant legislative acts, high lightening the criteria to be met for setting up 
activities in these areas?  
ANSWER:  Law on Free Zone is the main legislative act to regulate matters related to the free 
zones in Mongolia. 
In particular, could Mongolia clarify whether foreign companies are eligible for setting up activities 
in these areas? 
ANSWER:  First, the foreign companies which are interested to conduct business in the free zone 
shall submit their business plan to the Governor’s  Administration Office of the free zone and then 
evaluation would be held by the Office. The co mpany selected as a result of the competitive 
bidding process is eligible for setting up activities in the free zone. 
3.2.4.3 Export financing, promot ion, and marketing assistance 
Page 32, paragraph 3.56 
EU question 29: Could Mongolia provide the criteria  used by the Development Bank of Mongolia in 
order to approve export financing? WT/TPR/M/297/Add.1 
 
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  ANSWER: Development Bank of Mongolia approves export  financing if the projects is to support 
economic development, production of value adde d export goods, which meet international or 
European standards etc. However, DBM hasn 't provided any export financing yet.  
3.3.2 Competition policy and price controls 
Page 35, paragraph 3.66 and subsequent 
Reference is done to the activities of the Authority for Fair Competition. 
EU questions 30 to 32: Could Mongolia explain how the decision making procedure is designed in 
deciding in individual cases under investigation; in particular, please clarify who decides to open an 
investigation, who undertakes the actual investigation, who makes the substantive decision, is appeal possible and who is the appeal body?  
ANSWER: According to the Competition law and State Inspection law, AFCCP shall initiate the 
investigation based on complaints from citizen, and business entity, public media, by its initiatives 
and other basis which are specified in other laws and regulations.  AFCCP has state inspectors. There are provisions related to the rights and obligations of state 
inspectors in the Competition law /Article 20, Competition law/.  
State inspectors have rights to make a decision independently. If the entity does not agree with the decision of state inspector, it can appeal to  the higher-level organizations, specially to the 
Senior state inspector, general inspector, and administrative court. In Mongolia, there are 3 level 
administrative courts. If the entity doesn’t agree with the decision of lower level court, it can 
appeal to the higher-level. 
Could Mongolia clarify how many investigations does the Authority initiate every year. Please 
provide statistics for the decisions taken by the competition authority for the past 5 years 
(including information about the fines which are imposed, the types of cases etc)? 
ANSWER:  As seen from the statistics, the number of investigations has been increasing sharply 
since 2010. The number of investigations are as follows: 
2009-35 
2010-211 
2011-300 
2012-388 2013-761 
Since 2008, AFCCP has been responsible to implement Consumer Protection law, Advertisement 
law, and some provisions of public procurement.  Therefore, it influenced to the growth of 
investigation number. 
According to the Law on prohibiting unfair competition, the maximum amount of penalty was 
250 000 Tugrug /it equals around US$150.  
Under the Competition law, the penalty depends on violation. If legal entities conduct a cartel, the amount of penalty is up to 10% of turnover. If  any dominant companies abused their dominant 
position, the penalty is up to 6% of previous ye ar’s turnover. Currently, in practice, the maximum 
amount of penalty which was imposed on 8 companies for making cartel are 17 billion Tugrugs /around US$10 million. 
Could Mongolia clarify how does the Authority communicate its activities to the public (does the 
Authority inform about investigations; are decisions published)? 
ANSWER: In some laws, such as Competition law, State inspection law, and information 
transparency law, there are provisions related to  the transparency. According to those laws, the 
terms of reference should be in troduced to the companies.  
After completing investigations, AFCCP make a pu blic release. Every year AFCCP published its 
annual report as well.  
Page 35-36, paragraph 3.67 
The report states that “if a dominant entity sells a particular good at the "lowest minimum social 
cost", it is not deemed to be abusing its dominant position”. WT/TPR/M/297/Add.1 
 
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  EU question 33: Could Mongolia clarify what is  meant by this? Please provide examples and 
statistics for its use. 
ANSWER: According to the Article 5.1, Competition law,  a business entity shall be considered as 
having a natural monopoly where it operates on the market in which an average social cost may 
be the lowest when only one entity supplies a certain product to the market. So when we are 
identifying natural monopoly entity, we should consider its market share and social cost. In practice, we used initial cost to create a company /network, pipeline, / and its marginal cost. Since 
2005, AFCCP has been identifying around 60 entiti es which are mostly in energy distribution, 
railway, water supply sectors etc. 
3.3.3 State trading, state-owned enterprises and privatization 
Page 36 paragraphs 3.72 and 3.73 
According to the report, Mongolia plans to reduce the number of SoEs by one third. 
EU questions 34 and 35: Could Mongolia provide more information on this plan, particularly with 
regard to the mining sector?  
ANSWER: Privatization guidelines for next 4 years has not been passed by Parliament yet. There 
is Government initiative to reduce State involvement in all sectors. 
In particular, could Mongolia clarify whether SoEs operating in the mining sector are granted any 
special or exclusive right or privileges? 
ANSWER: There is no special or exclusive right or privileges for SoEs operating in the mining 
sector. 
EU question 36: Could Mongolia clarify whether the competition law does apply to SoEs? 
ANSWER: Yes, competition law applies to SoEs. 
3.3.4 Government procurement 
Page 37, paragraph 3.77 and subsequent 
With reference to the Government procurement, the EU is aware of the Legal Diagnostic report 
prepared by EBRD-UNCITRAL and issued in November 2012. 
EU question 37: Could Mongolia submit details of  the implementation of the suggestions deriving 
from the November 2012 EBRD-UNCITRAL Legal Diagnostic report? 
ANSWER: We are very appreciated for EBRD made survey on current public procurement system 
evaluation and legal diagnostic report. The Legal diagnostic report suggests 7 group 16 legislative activities. There are 12 activities will be able implement after amendment of Public Procurement 
Law. Government of Mongolia does not allow making amendments on Public Procurement Law.  
Other 4 activities can implement without any law amendment so Minister of Finance enacted Electronic Procurement Guideline and Framewor k Agreement Procedure in September, 2013. 
Currently Procurement Agency is implementing Electronic Procurement Guideline and Framework 
Agreement Procedure.  
Page 37, paragraph 3.77 and subsequent toge ther with page 5, paragraph 3.2 of the 
Government report 
Reference is made to the Law on the Developmen t Bank of Mongolia (DBM). We understand that 
procurement of goods and services by the DBM is  not subject to the Public Procurement Law. 
EU questions 38 and 39: Could Mongolia explain th e rationale of this exclusion? Could Mongolia 
provide indications as to whether this exclusion has led to economic efficiency in terms of quality 
and cost? 
ANSWER: State in provision 3.6 PPLM, and Government order declares Mongolian Development 
Banks activities do not apply Public Procurement Law. Therefore, Ministry of Finance does not have 
any obligation to review biddings are organized by Mongolian Development Bank.  WT/TPR/M/297/Add.1 
 
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  4 TRADE POLICIES BY SECTOR 
4.1 Agriculture 4.1.3.1 National Programme for Food Security Page 45, paragraph 4.18 
With reference to the “National Programme for Food Security”: 
EU question 40: Could Mongolia clarify whethe r this programme include any measure for the 
development of organic agriculture? If so, wo uld it be possible to receive some details? 
ANSWER:  National Programme for Food Security has an overall goal to provide the entire nation 
with secure supplies of accessible, nutritious and safe food to enable healthy livelihoods and high 
labour productivity, founded on the participation of people, government, the public and private sectors. 
1. Food Production and Supply: Although our country supplies to the requirement of its population 
with domestically produced meat, milk and potatoes, there are still big disparities in food consumption of its rural and urban populations al ong with existing seasonal dependencies. For 
instance, an urban resident consumes 1.5 times lesser meat, 3.9 times lesser milk than a rural 
resident, while a rural resident consumes 2 times lesser potatoes and vegetables, 9.5 times lesser eggs than an urban resident.  
2. Food safety: As per the statistics 2007, only 6.4% of the consumed meat and 2.2% of milk 
were industrially processed, whereas other food products were processed without due veterinary and hygiene control. Food raw materials and produc ts sold in the markets were in of uncertain 
origins and had no certificates of quality and hygiene. The State Special Inspection Agency 
indicated in its report, that toxic chemical residues were found in cases of imported food products 
and raw materials at concentrations higher than the permissible standard level; and not in few cases, virulent germs, pests and micro-organism s were also found. It became a common practice 
to violate the technological, hygienic and sanitary procedures and regulations at packaging, 
preserving, transporting and selling meat, milk, potatoes and vegetables for human consumption.  
3. Nutrition: The food intake of a Mongolian pers on constitutes mostly of meat and flour products, 
which remain dominating over the low rate of consumption of fruits and vegetables, rich in 
vitamins and minerals. At the national level, a pe rson of the vulnerable group consumes reportedly 
33% lesser calories than the daily food intake norm set in the Recommended Dietary Intake of the Population. 
4. At the national level, 96.3% of the total annua l requirement in salt is iodized and over 30% of 
the domestically produced flour is fortified with iron and vitamins. However, the key indicators of nutrition and food consumption such as low weig ht births, stunting, underweight, rachitis and 
anemia among the under-five-year-old children are not decreasing at substantial rates. Also the 
rate of food-borne non-communicable diseases is  not decreasing because of lack of adequate 
knowledge and consumer education among the population on proper food consumption and 
nutrient intake. According to the findings of a st udy conducted in 2006 among adults on factors of 
nutritional risks, it was shown that 4.9% of the adults, involved in the study, were underweight, 
21.8% overweight and 9.8% in obesity. In addi tion, food access and nutrition of pregnant and 
breast-feeding women were inadequate, and food deficit prevailed among the vulnerable 
population such as low income and poor households, the elderly and disabled people, people who 
require but lack care.  
4.2.1.2 Policy 
4.2.1.2.2 Other minerals 
Page 50, para 4.38 The WTO secretariat report mentions the draft new Mineral Law that was submitted to the 
Parliament in December 2012 but had yet to be passed. 
EU questions 41 and 42: Could Mongolia provide an update on the adoption and implementation of 
the new Mineral Law?  
ANSWER:  New Mineral Law is submitted to the Parliament, not yet passed.  WT/TPR/M/297/Add.1 
 
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  Moreover the EU would be interested to learn from Mongolia if the new Mineral Law includes trade 
related measures or targets trade in raw materials. 
Other questions not linked to spec ific paragraphs of the report: 
Water Law (revised and endorsed by the Parliament on 17 May 2012) 
According to certain provisions of the Water Law (revised and endorsed by the Parliament on 17 
May 2012), foreign entities are not allowed to carry out water and water environment related explorations without the permission from the State Authority and, for some services, licenses can 
be granted only to domestic companies. We understand that foreign service-providers are no 
longer allowed to receive the special license needed for water exploration and research solely on the ground that they are foreign invested entities, making it no longer possible for them to perform their activity in this area. Mongolia didn't undertake any specific commitments under the 
General Agreement on Trade in Services (GATS) concerning water and environmental services; 
however, if it is impossible for foreign invested companies to conduct water related exploration, it might be in tension with the following subclasses where Mongolia has GATS commitments: 
 86751 - Geological, geophysical and other scientific prospecting services 
 86761 - Composition and purity testing and analysis services 
The scope of the provision appears to be too vague and requires further clarification of which 
activities fall under "water and water environment works" as indicated in Article 5.5 of the Water 
Law. 
Could Mongolia clarify: EU question 43: The exact scope of application of  the Water Law in terms of services covered.  
EU question 44: The exact interpretation of th e activities covered by Article 5.5, for which 
permission from the State Authority is required. 
EU question 45: The exact criteria on the basis of  which the State Authority is granting permission 
for activities covered by Article 5.5. 
EU question 46: The exact procedure to be followe d and requirements to be met in order to be 
granted permission according to Article 5.5. 
EU question 47: The exact interpretation of the activities covered by Article 21.2, for which a 
license can only be granted to domestic invested entities. 
ANSWER:  Foreign investment companies have expressed their concerns regarding Article 21.2 of Law on 
Water of Mongolia which states that "Licensing fo r specialized enterprises conducting water resource 
exploration and research works are to be granted to do mestic enterprise only". Main justification of the 
amendment to the Law is based on Article 6.1 of the Co nstitution of Mongolia which states that "The land, 
its subsoil, forests, water, fauna and flora and other natural resources shall be subject to national 
sovereignty and state protection".  
 Through the amendment of the law, Mongolia opens up a wide range of possibilities to 
cooperate and mutually understand foreign inve stors, especially investors in the mining 
sector. It is important to note that, before the amendment to the law, foreign mining 
investment companies tended to conclude serv ice contracts with mostly foreign specialized 
companies for ground water exploration works and there have been discrepancies in quantity and methodology of water resource determination .  
EU question 48: Other Laws and Regulations clearly forbidding or restricting foreign invested 
companies from obtaining the Special Licence for conducting water related explorations. 
ANSWER: No such regulations.  
WT/TPR/G/297 – WTO Government's Report 
3.2 External trade, foreign direct investment Page 7, paragraph 3.21 
Registration of Mongolian traditional export goods as geographical indications is mentioned under 
this paragraph as an objective of Mongolia's trade relations with the EU. WT/TPR/M/297/Add.1 
 
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  EU questions 49 and 50: Could Mongolia be more specific and clarify what products do their 
authorities have in mind, and what timeline? What steps does Mongolia intend to take in this direction? 
ANSWER : Camel wool, yak wool are possible GI export products. We cannot specify the time 
frame .  
Page 8 paragraph 3.31 
The report states that the Government aims to impose differentiated import duties in order to 
promote domestic production, encourage the transfer of advanced technology, as well as for the 
concerns related to food security and better quality foodstuffs. EU question 51: Could Mongolia provide more info rmation about the imposition of differentiated 
import duties for the promotion of domestic products?  
ANSWER: Current measures are intended to ensure food  security and better quality of foodstuff. 
However, it is indirectly linked to promotion of domestic production. Differentiated import duties are applies only on few perishable food items such  as eggs, onions, carrots, turnips and cabbage.  
5 MULTILATERAL TRADE CO-OPERATION 
Page 14 paragraph 5.1 Reference is made to the fact that "additional technical assistance is required to ensure the full 
implementation of the agreements". The EU is  concerned by the fact that the existing 
organizational structure of the Ministry of Economic Development makes it very difficult to 'absorb' additional technical assistance programs. 
EU question 52: Could Mongolia indicate whether it intends to 'strengthen' the operational 
resources allocated to trade in the Ministry of  Economic Development in order to improve the 
“absorption” of additional technical assistance programs? 
ANSWER: Additional technical assistance is required to ensure the full implementation of the 
agreements in regards of capacity building for Mi nistry of Economic Development. Ministry of 
Economic Development is in charge of trade relate d issue. Therefore, coordination of Government 
agencies has to be made by MED. For instance , Mongolia is lacking the WTO notifications.  
5.1.4 Services 
Page 15, paragraph 5.9 Mongolia has no GATS commitments for most of the business services. Then, according to his 
paragraph the market of trade services in Mongolia is totally open without any restriction as of 
today, 
EU question 53: Could Mongolia inform about the existing national regime and requirements to 
provide business services (including professional services)? 
ANSWER: There is no specific requirements for foreigners to provide professional service in 
Mongolia. All international accredited qualifications are acceptable in Mongolia.  
Modes of supply: (1) Cross-border (2) Consumption 
abroad (3)Commercial 
presence (4) Presence of 
natural persons 
Sector or Sub-
sector Limitations on Market Access Limitations on 
National Treatment Additional 
Commitments 
I. HORIZONTAL COMMITMENTS 
ALL SECTORS INCLUDED IN THIS SCHEDULE (4) Unbound except 
for measures affecting the entry and temporary stay of natural persons with managerial and technical skills which are in short 
supply in Mongolia, 
and fall within the (4) Unbound except 
for measures referred to under market access   WT/TPR/M/297/Add.1 
 
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  Modes of supply: (1) Cross-border (2) Consumption 
abroad (3)Commercial 
presence (4) Presence of 
natural persons 
following 
categories: business visitors, intra corporate transferees and professionals under 
a service contract. 
II. SECTOR-SPECIFIC COMMITMENTS 
1. BUSINESS SERVICES 
A. Professional Services 
(b) Accounting, 
auditing and bookkeeping (CPC 862) (1) None 
(2) None (3) None (4) Unbound except as indicated in the horizontal section (1) None 
(2) None (3) None (4) Unbound except as indicated under market access   
F. Other Business Services 
(c) Management 
consulting (CPC 865) (1) None 
(2) None (3) None (4) Unbound except as indicated in the horizontal section (1) None 
(2) None (3) None (4) Unbound except as indicated under market access   
(e) Technical 
testing and 
analysis services 
(CPC 8676) (1) None 
(2) None 
(3) None 
(4) Unbound 
except as indicated 
in the horizontal 
section (1) None 
(2) None 
(3) None 
(4) Unbound 
except as indicated 
under market 
access   
(h) Services 
incidental to mining (CPC 883, 5115) (1) None 
(2) None (3) None (4) Unbound except as indicated in the horizontal section (1) None 
(2) None (3) None (4) Unbound except as indicated under market access   
(m) Related 
scientific and 
technical 
consulting services 
(CPC 8675) (1) None 
(2) None 
(3) None 
(4) Unbound 
except as indicated 
in the horizontal 
section (1) None 
(2) None 
(3) None 
(4) Unbound 
except as indicated 
under market 
access   
 WT/TPR/M/297/Add.1 
 
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  AUSTRALIA 
Trade Policy Review of Mongolia 3 and 5 June 2014 
Report by the Secretariat - WT/TPR/S/297 
SUMMARY 
Page 8, Paragraph 9 
Is Mongolia taking further steps to privatize state-owned enterprises? In particular, when will the process of privatizing the national airline (MIAT) and various power plants re-commence? 
ANSWER: The “State Policy on the Civil Aviation Sect or up to 2020” has been adopted by the 
Mongolian Parliament in 2013. The provisions such  as, “The air transportation would enter into 
open market stage by stage commencing from 2016”,  “Civil aviation services, provided by private 
parties in collaboration with the State shall be supported, policy, conducted to encourage the 
multi-type ownership, free competitiveness, shall be  maintained up to 2020” have been stated to 
the mentioned above document and the related works to the policies have been planned in order to ensure the air market release preparation.  
4 TRADE POLICIES BY SECTOR 
4.2.1.2.2 Mining and energy / Minerals / Policy / Other minerals  Page 50, Paragraph 4.37 and 4.38 
Australia welcomes Mongolia’s openness to the provision of mining expertise, technology, 
equipment and services. Could Mongolia please provide an update on the passage of the new 
Mineral Law, including clarification as to whether the licenses referred to above will be available to foreigners under the new law? 
ANSWER:  The term of prohibiting issuing new special license on mineral resources exploration 
approved in 2010. After the law any exploration license not granted. Before granted majority of the licenses expire. Basically, four years later, in Mongolian exploration license, there are no 
conditions to exist. 
Exploration license issuance for approved area se t by the state. The current law in granting an 
exploration license for first comer, according to th e application or allow the principle of selection. 
This principle still remained. However, some changes are allowed. Before termination new area not 
granted it’s ended, cancelled and given back as mineral concentration conditions selection was announced. By changing the law terminated for non-payment of bills, partially and whole returned fields moving previous principle of the application procedure and who came first. Issuing a license 
since 2006, primarily cancelled fields only allowed the selection procedure; however have 
opportunity to provide application procedure.  Thus, about 20% of the total territory has 
opportunity to get new exploration license.  
4.2.1.1 Mining and Energy / Minerals / Features 
Page 47, Paragraph 4.25 The report notes the OyuTolgoi copper and gold mine  ‘could account for one third of GDP by 2020’, 
but is currently stalled. What steps are being taken to ensure this project proceeds? 
ANSWER: The 100,000 tonne-per-day concentrator began processing ore at the beginning of 
2013, from Oyu Tolgoi's open pit. The underground section of the mine, which is expected to be developed in the next phase of the project, co ntains up to 80 per cent of the value of the 
project. The feasibility study to develop the next phase is under way and is expected to be 
completed in the first half of 2014. 
4.3.2 Services / Telecommunications 
Page 64, Paragraph 4.86 
Australia notes Mongolia’s existing levels of openness in the communications sector. Could Mongolia please provide further detail on the nature of the National e-Governance Program, 
National broadband network and Radio and television  broadcasting to digital transfer [ref. Report 
by Mongolia, page 12] and outline the extent to which they are open to foreign investment and 
service suppliers?  WT/TPR/M/297/Add.1 
 
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  ANSWER: 
1. The communications market of Mongolia is “open” for foreign direct investment and the 
Investment law of Mongolia is the only measure that applies to this market. 
2. To improve transparency and openness of govern ment organizations, public contribution in 
setting the policy, and accessibility and quality of  government services, government of Mongolia 
approved national programme of “e-Government” in 2012. Within the scope of this programme, 
we are implementing the system to offer government services online, the platform for government 
data exchange, and the cloud systems.  
3. The purpose of national program, “National broadband network”, is to contribute to the 
economic growth and the living standards of pe ople through expanding the broadband network 
throughout Mongolia and thus offering low-cost, va riety of bundled services to the households and 
businesses. Currently, there are 293 soums (rural towns) connected to the fiber optic cable 
backbone network of Mongolia and we are working to implement IP/MPLS and DWDM technologies to these areas. 
4. Mongolia have enacted the “Digitization of broadcasting network” program in 2011 and since 
then, we have started to convert the broadcasting transmission stations from analog to digital at 220 rural towns. Under this initiative, there were 10, 38 and 38 soums where the digital 
broadcasting transmission station were installed in 2011, 2012 and 2013 respectively. In 2014, 
we’re working to implement digital broadcasting capability at 141 soums.  
5. The above-mentioned programs and projects are currently funded by the state budget. 
However, we are open to contributions from foreign loans, grants and investments through Public 
Private Partnership to implement these programs.  
4.3.3.1 Services / Transport / Air transport 
Page 66, Paragraph 4.95 
Australia welcomes Mongolia’s planned liberalisation of its air transport services sector. Australia 
understands that all airports are currently owned and operated by the Civil Aviation Authority of 
Mongolia. Will the planned liberalisation extend to the provision of ground-based services related 
to air transport (airport operation, maintenance and repair of aircraft, airport operations etc.), 
including at the new international airport near Ulaanbaatar? 
ANSWER: The provisions such as, “In the framework of the State-private partnership certain 
public services shall be transferred to private se ctor”, “Improvement of the operations and service 
managements of the domestic airports shall be organized through the public-private sectors 
partnerships”, “Privately-held airport operations would be supported” have been stated to the policy document of the “State Policy on the Civil Aviation Sector up to 2020”.  
With the reference to the new international airport,  certain type of services at the Ulaanbaatar new 
airport will be transferred to the private sector in accordance with the Concession Contract, and participation of the private sector in the services  at the cargo terminal and cargo transportation 
logistics center of the new Ulaanbaatar airport would be encouraged.  
In present, the local airports such as, Tavantolgoi, Ovoot and Khanbumbat are operated by the private sector and 9 companies in aircraft technical services are operating in the field successfully.  
Furthermore, the “Action Plan for 2012-2016” of Mo ngolian Government, includes the provisions as 
follows, “the operational improvement of Altai and Donoi airports and the operational restoration 
of Khujirt, Erdenet, Baruun-Urt, Arvaikheer, Ondo rkhaan and Mandalgobi airports, as well as the 
operation management of ChinggisKhaan international airport and some other local airports will be 
executed under the public-private partnerships activities”. 
4.3.3.3 Services / Transport / Rail Transport 
Page 71, Paragraph 4.110 
Could Mongolia please provide some further detail concerning the extent of current private sector 
participation in these railway construction projects, and explain whether there is a role for increased private sector participation, and whether the project is on track for completion in 2016? 
ANSWER: The “New Railway” project initiated by the G o v e r n m e n t  o f  M o n g o l i a  i s  o p e n  t o  t h e  
involvement of national and international investors and private sector in various ways. For 
instance, the current construction of Tavantolgoi – GashuunSukhait line involves 11 domestic and 1 foreign subcontractors. The construction works of the project can be completed within the 
project completion date of 2016 as long as th e financing is be resolved without delay and 
negotiation on investment proceeds successfully.  WT/TPR/M/297/Add.1 
 
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  Report by Mongolia - WT/TPR/G/297 
3 ECONOMIC AND TRADE DEVELOPMENTS (2005-2013) 
3.1 Current Macro economic situation Page 5, Paragraph 3.9 
Mongolia’s 2013 inflation rate is quoted at 12.5 per cent. While this is down from 2012, high levels 
of inflation can erode investment returns. What are the Mongolian Government and the Bank of Mongolia doing in order to bring inflation down further, including by way of microeconomic reform? 
ANSWER: Price stability is a concept concerning the general price level in the economy. Achieving 
price stability should be understood as not only avoi ding inflation, but also avoiding deflation. Price 
stability affects GDP and employment growth through the following ways: 
 When the price level is stable, it becomes easier for the public to distinguish changes in 
relative prices and thus facilitates an environment to make more accurate consumption and 
investment decisions; 
 By sustaining a stable price level, inflation risk premium could be reduced. This leads to a 
decrease in interest rate and an increase in investment; 
 It helps to avoid inefficient activities to be implemented with the purpose of lessening the 
negative impacts of inflation /deflation/; 
 It could lower the negative effects of taxation and social welfare framework that might 
distort economic activities; 
 It could prevent inappropriate allocation of resources and revenue; 
 It contributes towards financial stability . 
The targeted inflation rate is set and included in the Monetary Policy Guidelines every year. 
However the issues of what does the concept of “price stability” being understood as in the case of Mongolia and what the standards for its measurement are remain yet to be clear. 
As an example, it is stated that consumer price inflation shall be kept within one-digit in the 
Monetary Policy Guidelines for 2012. If price leve l rises by less than 10% in 2012, would it be 
understood that the price stability is being atta ined? On the other hand when inflation exceeds 
10%, should we consider that price stability is not being achieved? It is impossible to address 
these issues directly. 
3.2 External trade, foreign direct investment 
Page 10, Paragraph 3.38 
Australia is pleased to note the Mongolian Government considers FDI as an important thrust in the 
economic development of the country. In light of difficulties created for investors by uncertainty 
surrounding the Law of the Regulation of Foreign Investment in Business Entities Operating in 
Sectors of Strategic Importance, we would appreciate details on the steps the Mongolian 
Government has now taken to achieve “an environment that protects foreign direct investment” and mitigate regulatory risk for foreign investors. 
4 MAJOR ECONOMIC SECTORS OF MONGOLIA 
4.1 Mining Page 11, Paragraph, 4.2  Coal exports are mentioned twice as a share of total exports; does this represent a 
coking/steaming coal split? 
ANSWER: "Since 2005, there was a substantial changes in the structure of minerals exports and 
in 2009, 26.64% of exports were copper concentrate, 17.7% - gold, 16% - coal, 6%- crude oil and 
in 2013 22.2% were copper concentrate,7.3% - gold, 26.1%- coal and 12.1%- crude oil, 15.3%-
iron ore etc." As you may notice, Export amo unts of certain minerals in 2009 compared with 
year 2013.  
Page 11, Paragraph 4.3 
Australia recognizes the importance of investment in the development of the mining sector to Mongolia. Please provide further details on the impact of Parliament Resolution No. 18, 2014 on WT/TPR/M/297/Add.1 
 
- 28 - 
 
  foreign investors and investment (current and prospective) in Mongolia’s mining sector, as well as 
an update on any further planned regulation of the sector.  
ANSWER: Revised draft law of amending law on Minerals, on Subsoil, Oil law once it approved 
more attractive to foreign investors and hence contribute to economic growth in Mongolian Mining 
sector.  
Page 11, Paragraph 4.6 
Could Mongolia please advise whether there will be opportunities for foreign environmental service 
suppliers to participate in rehabilitation activities? 
ANSWER: According exploration policy only allow in selected field. The Land Law classified 6 types 
of funds: land tenure, special needs, border areas, infrastructure construction, farming, 
agricultural land, reservoir sites etc. These 6 f unds sites have defining the boundaries. On the 
basis geological features, mineral prospects picture this area has got forecast mineral prospects so 
that generally diagnosed the fields that issuing new exploration licenses. In other words, the potential area has chosen basic on scientifically research. Law was drafted by the Ministry of 
Mining; Submit to the Government and government decree will be secured. Defined coordinate 
area mining license shall be issued. Other areas mining industry avoided. Other means belonging 
“long name law” areas, special needs, agricultural should not be compromised mining industry 
therefore, special area remained.  
General Questions 
Australian businesses report difficulties in complying with Mongolian permit and licensing rules in the minerals sector. Is the Mongolian Govern ment taking steps to simplify these rules? 
We are concerned about incidents of travel restrictions being placed on foreign nationals, including 
Australian business people, for extended periods of  time owing to judicial investigations. What 
steps can the Mongolian Government take to ensure rapid resolution of these cases so as to avoid 
unnecessarily hampering Australian business interest s through extended periods of restrictions on 
individuals’ freedom of movement? 
Australian businesses report concerns about the use of the criminal justice system to resolve 
commercial disputes. What steps will the Mongolian Government take to ensure commercial 
matters are dealt with in the civil rather than criminal jurisdiction? 
ANSWER: Preventive measures shall have to be take n for local and foreign business people who 
were recognized as a suspect, charging and sentenci ng person to a criminal liability by an inquirer, 
investigator, prosecutor or a judge according to the current Criminal Law in force. A person who is 
recognized as a suspect, charging and sentencing to a criminal liability shall not be permitted to cross the border without the permission of an inquirer, investigator, prosecutor or a judge. As 
stated in Mongolian legislation, there is a possibilit y for civil law settlement of this issue in case of 
non-recognition as a suspect, charging and sentencing person to a criminal liability.  WT/TPR/M/297/Add.1 
 
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  COLOMBIA 
 
QUESTIONS FROM THE GOVERNMENT OF COLOMBIA 
TO THE GOVERNMENT OF MONGOLIA 
REPORT BY THE GOVERNMENT OF MONGOLIA 
(WT/TPR/G/297) 
ECONOMIC AND TRADE DEVELOPMENTS (2005-2013) 
3.1 Current macroeconomic situation 
Paragraph 3.11 of the Government report states the following: "Promoting development 
of the private sector has been one of the key objectives of the Government of Mongolia. In order to improve the legal environment, to dire ct Public- and Private partnerships for economic 
development, the Concession Law was adopted in 2010. The Government implemented actions 
such as promote private investment in infrastructure projects, transfer some of the Government functions to the non-governmental organizations, professional association". 
1. Could the Government of Mongolia please explain which functions it has transferred 
to non-governmental organizations and professional associations? 
ANSWER: Government of Mongolia is initiated to transfer some of the functions to the NGOs and 
professional associations. It is early stage of development of NGOs and professional associations, 
except Mongolian Chamber of Commerce. However, Ministry of Justice transferred some functions 
to the Lawyers Association such as conducting training and seminars, accreditation of law schools and programs, advertising new laws to build public awareness.  
2. Why did the Government of Mongolia tran sfer these functions to non-governmental 
organizations and professional associations? 
ANSWER: Government of Mongolia initiated to transfer some functions to non-governmental 
organizations and professional associations to involve NGOs in Governmental policy, support them, 
collaborate with them.  
3. Has this transfer of functions fulfilled th e objective of furthering Mongolia's economic 
development? If so, how? 
ANSWER: It requires long period of time.  
3.3 Legal and structural changes in external trade 
According to paragraph 3.44 of the Government report, "On the purpose of establishing 
an institutional framework in order to increase Mongolia's export revenues, ensuring proper 
structure for foreign trade, supporting exports and providing efficient funding for export activities, 
Export Promotion Program is adopted in 2013 and started its implementation". 
4. Could the Government of Mongolia please explain what the Export Promotion Program 
consists of? 
ANSWER: The program objectives are as follows: 
1. To establish an institutional system for the exporters to enable them enter new markets and 
provide them with "technical" supports such as market research and marketing consultations. 2. To establish an optimal system and institutional climate to provide financing for the 
exporters. 
3. To create an institutional climate to reduce financial and other expenditures of the 
exporters. 4. To set up an institutional framework to implement “Single window” policy to support exports 
and export-supporting imports. 
5. To reduce the risks of export and import processes and improve financing framework. WT/TPR/M/297/Add.1 
 
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  This program will be implemented within 2013-2018. 
5. What sectors of the economy is it aimed at? ANSWER: The Export Promotion Program of Mongolia is focusing on the exporting of non-mineral 
goods for export diversification. Export structure will be changed through influence of increased 
non-mining goods export. By end of the program export of non-mining goods expected to reach 
21% of total export. 
4.2 Agriculture 
Paragraph 4.9 of the Government report states the following: "The Government proclaimed 
Year 2008 as "Year of Food supply and security" and aimed to ensure a self sufficiency of major stable food products such as meat, milk, whea t flour, potatoes and vegetables. Within the 
framework of the food security goals, "A third National Crop rehabilitation" campaign was 
launched. As a result of this campaign, in 2013, 80% of domestic demand of wheat, 100% 
of potatoes, 54.9% of vegetables supplied by domestic harvest". 
6. Could the Government of Mongolia please explain what the national crop rehabilitation 
campaign consists of? 
ANSWER: The Third Crop Campaign seeks to increase production of crops in order to reduce 
import dependence while ensuring food safety  through bringing abandoned land back into 
production and improving yields.  
7. How much money does the Government of Mongolia invest in each campaign? ANSWER: The national food security program has been adopted by the Mongolian Government in 
2008. 69.7 billion tugrigs has been allocated for the implementation of the program from the state 
budget.  
8. How regularly does the Government of Mongolia conduct a national crop rehabilitation 
campaign? 
ANSWER: National crop rehabilitation campaign was conducted from 2008 to 2010. We don't 
conduct such campaign regularly. Report by the Secretariat (WT/TPR/S/297).  
SUMMARY 
According to paragraph 3, "The authorities are aware of the problems that can arise from dependence on a narrow economic base. The Millennium Development Goals-based Comprehensive National Development Strategy of 2008 states that, while mineral deposits are to 
be exploited, Mongolia is also pursuing a policy of diversification; the Strategy sets out a number 
of priority areas, including export-orientate d, private sector-led, high technology-driven 
manufacturing and services such as information and communication, bio- and nano-technology, 
transit transportation, logistics, financial mediation services, and deeper processing of agricultural 
products. Particular attention is paid in the Strategy, inter alia , to promote SMEs to produce import 
substitution products while supporting imports of advanced technologies". 
9. Could the Government of Mongolia please describe the mechanisms it uses to support 
imports of advanced technologies? 
ANSWER : Under preparation .  
10. How does the Government of Mongolia qualify or measure goods to be imported in order 
to consider them advanced technologies? 
ANSWER: Law on technology transfer has a provision to have technology level assessment. 
However, this provision said it is not mandatory to have such assessment. Therefore, there is no 
proper mechanism to define whether it is or not advanced technology. Biotechnology, 
nanotechnology, information technology and electronic are defined as High-technology .  WT/TPR/M/297/Add.1 
 
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  11. Do all Mongolian SMEs benefit from suppo rt for imports of advanced technologies? 
ANSWER: All business entities registered as SMEs may apply for VAT exemption on importing 
advanced technologies. According to the Innovation  law, Ministry of Economic Development shall 
register implementer of innovation projects and start-ups based on professional assessment and 
right to apply for preferential treatment and exemption will be automatically enabled.   
According to paragraph 8 of the Secretariat report, "Mongolia has continued to develop and apply new standards many of which are mandatory techni cal requirements and, out of a total of over 
six thousand, less than half are aligned with international standards". 
12. Does the Government of Mongolia have any plans to align its as yet unaligned mandatory 
technical standards with international standards? 
ANSWER: Government of Mongolia  is working on aligning mandatory technical standards with 
international standards. British standardization body assist Mongolian Agency for Standardization 
and Metrology on transferring some National standards into the International standards.  
1 ECONOMIC ENVIRONMENT 
1.1 Recent economic developments 
Paragraph 1.2 of the Secretariat report states th e following: "Mongolia's main export destination 
is China and its main export products are minerals (section 1.2). As described in the Millennium 
Development Goals-based Comprehensive National Development Strategy (Parliament Resolution 
on 12 February 2008), the authorities intend to ex ploit mineral deposits of strategic importance. 
At the same time, they wish to diversify Mongolia's export products, so that it will be less dependent on mineral resource exports. Priority areas including export-oriented, 
private-sector-led, high technology-driven manuf acturing and services, such as information 
and communication, bio- and nano-technology, transit transportation, logistics, financial mediation services, and deeper processing of agricultural products". 
13. What results have been achieved in expo rt product diversification with the envisaged 
increase in investment in the mineral sector and the Comprehensive National Development Strategy? 
ANSWER: During the preparation of the MDG based Comprehensive National Development 
Strategy, Mongolia was fully dependent on Mining sector. To avoid Dutch disease and reduce the dependency on mining, Government of Mongolia se t the long term goal on diversification of the 
economy. Priority areas including export-oriente d, private-sector-led, high technology-driven 
manufacturing and services, such as information and communication, bio- and nano-technology, 
transit transportation, logistics, financial mediation services, and deeper processing of agricultural products". However, long period of time n eed to accomplish these above mentioned goals.  
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures directly affecting imports 3.1.1 Customs procedures and requirements 
According to paragraph 3.3 of the Secretariat report, "The main legislation governing importation 
into Mongolia is the Customs Law and the Law on Customs Tariffs and Duties (Customs Tariff Law). The Customs Law defines the organizational structure and legal basis of Customs, under the Customs Central Body, as well as the procedures of customs clearance and enforcement 
of the customs legislation. The Customs Tariff Law regulates matters regarding determination 
of the customs tariff, customs valuation, classification, and rules of origin, as well as levying, collection, and payment of customs duties. The tw o laws and their implementing regulations were 
last revised in 2008 to apply a risk-management system, which enabled, inter alia , accepting 
electronic copies of documents, adopting "preliminary customs declaration", allowing one customs declaration set for several shipments or numerous items shipped together. The revision also aimed 
to facilitate cooperation with customs authorities in Mongolia's trading partners through mutual 
recognition of documents and joint customs controls". 
14. With which countries does Mongolia have Customs Cooperation and Mutual Recognition 
Agreements? Could it please share its experiences in this area. WT/TPR/M/297/Add.1 
 
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  ANSWER: Mongolian Government has concluded Agreement on Cooperation and Mutual 
Assistance in Customs matters with the below mentioned 16 countries. 
1. Government of Russian Federation and the Government of Mongolia. /Moscow, January 20th 
1993/; 
2. Government of Republic of China and the Gove rnment of Mongolia. /Ulaanbaatar, September 
7th 1993/; 
3. Government of Republic of Korea and the Government of Mongolia. /Ulaanbaatar, July 28th 
1993/; 
4. Government of Hungary and the Government of Mongolia. /Budapest, September 22th 
1995/; 
5. Government of United States of America and the Government of Mongolia. /Hong Kong, 
June 19th 1995/; 
6. Government of Republic of Poland and the Government of Mongolia. /Ulaanbaatar, May 13th 
1995/; 
7. Government of Great Britain and the Government of Mongolia. /London, January 20th 1998/; 
8. Government of Republic of Kazakhstan and the Government of Mongolia. /Alma-Ata, March 
12th 1998/; 
9. Government of Czech Republic and the Gove rnment of Mongolia. /Praga, November 13th 
1998/; 
10. Government of Republic of Bulgaria and the Government of Mongolia. /Sofia, May 20th 
1999/; 
11. Government of Republic of Turkey and th e Government of Mongolia. /Ulaanbaatar, 
September 20th 1999/; 
12. Government of Socialist Republic of Vietnam and the Government of Mongolia. /Hanoi, 
October 3rd 1999/; 
13. Government of Ukraine and the Government of Mongolia. /Ulaanbaatar, October 10th 2002/; 
14. Government of Kyrgyz Republic and the Government of Mongolia. /Bishkek, March 1st 
2004/; 
15. Government of Republic of Belarus and the Government of Mongolia. /Ulaanbaatar, 
September 4th 2013/; 
16. Government of Republic of India and the Government of Mongolia. /Ulaanbaatar, April 13th 
2012/. 
Paragraph 3.4 of the Secretariat report states the following: "Under the Customs Law, 
the Customs General Administration is authoriz ed to set up regulations related to customs 
clearance procedures in compliance with the law. Order No. 638 (2010) of the Head of the 
Customs General Administration contains the main implementing regulations regarding customs clearance. According to the authorities, Customs has eliminated around 60 regulations with a view 
to reducing unnecessary documents and red tape". 
15. Does Mongolia have, or has it considered adopting, regulations to facilitate and simplify 
procedures for reliable users, such as Authorized Economic Operators? 
ANSWER: In the framework of Revision of Customs Law, the Mongolia Customs is making 
amendment to the provision on Authorized Econom ic Operator and drafted documents, regulation 
and criteria of Authorized Economic Operator.  
Paragraph 3.11 of the Secretariat report states the following: "With a view to combatting 
smuggling, Customs uses dogs trained to detect prohibited and restricted goods as well as 
narcotics. Of the 310 smuggling cases recently de tected by dogs, 79.3% related to fur skins and 
20.7% to cashmere". 
16. Have the Mongolian customs authorities taken any special measures with a view 
to conducting customs border controls to combat piracy and counterfeiting? WT/TPR/M/297/Add.1 
 
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  ANSWER:  Mongolia Customs has conducted “propertargeting, optimum control” campaign in 2013 
A brief overview of the 2013 customs offences and trends: Mongolian Customs has detected 117 criminal offences and the amount was increased by 68 cases compared to 2012. 
 Offences related to drugs and narcotics has scaled up. 
 Commercial fraud and tax and customs duty avoidance have grown by 5.85% compared to 
2012. 
 Attempt to smuggling prohibited and restricted goods to crossing Mongolian border has 
increased as well .  
3.2 Measures directly affecting exports 
3.2.4 Export support and promotion 
3.2.4.2 Free zones 
According to paragraph 3.53 of the Secretariat report, "To date, the Government has designated four free zones (two free economic zones (Zamyn-Uud, Choir) and two free trade zones 
(Altanbulag, Tsagaannuur)) (footnote: "In accordance with Article 3 of the Law of Mongolia on 
Free Zone, free zones include: free trade zones, free industrial zones, free agricultural zones, free tourism zones, and free economic zones"). Choir economic zone has not started operations". 
17. Could the Government of Mongolia please  elaborate on the legal and administrative 
provisions established in the law for the operation of free agricultural zones and free tourism zones? 
ANSWER: Few clauses related to the free industrial zones and free tourism zones provided in Law 
on Free Zone of Mongolia are the followings: 
Article 3. Free zone and its forms  3.2. Free zone is classified into trade, industrial, agricultural, tourism and economic forms.  
3.4. The free industrial zone shall conduct activities which are aimed at developing export-oriented 
production and manufacturing with premium and advanced technologies, creating competitive 
goods and products, and selling them on the market.  
3.6. The free tourism zone shall conduct various activities as a leisure complex whose facilities and 
infrastructure fit internationally accepted standards and requirements. As provided in the Redrafting of Law on Free Zone, there is no classification of free zones such as 
industrial, tourism, economic. It is eligible to conduct all kind of operations that are not prohibited 
according to the legislations of Mongolia in the free zones.  
18. What fiscal and other incentives are granted in free agricultural zones and free tourism 
zones? 
ANSWER: There are no specific provisions related to incentives on free industrial zones and free 
tourism zones. In generally, the following incent ives would be granted in the free zones according 
to the Redrafting of Law on Free Zone: 
 0% rate for VAT on the goods are produced in the free zone; 
 0% rate for export tax; 
 0% rate for income tax to the entities which are investing to the export-oriented industry for 
the first 5 years of the operation and for the following 3 years the income tax would be 
facilitated with 50% rate; 
 0% rate for income tax to the entities which are enterprising innovation and high 
technology-based industry for the first 5 years of the operation; 
 0% rate for property tax on the facilitations constructed for the purpose of the 
industrialization .  WT/TPR/M/297/Add.1 
 
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  UNITED STATES 
WTO TRADE POLICY REVIEW OF MONGOLIA 
QUESTIONS FROM THE UNITED STATES 
 
June 3 and 5, 2014 
Part I: Questions on the Secr etariat’s Report (WT/TPR/S/297) 
Page 7, paragraph 5: The Secretariat’s Report states: “ In addition to the new Law on Investment, 
several other laws were introduced in 2013 which,  amongst other things, are intended to improve 
the investment climate and promote fiscal stabilization including, the Fiscal Stability Law, the Integrated Budget Law, and the Social Welfare Law. These legislative changes, along with the steps taken by the Bank of Mongolia (the central bank) to stabilize the national currency, control 
inflation, and improve regulation of the commerc ial banks, should help to improve foreign and 
domestic investment .” However, based on the results to date, it appears that the steps taken by 
Mongolia’s central bank to stabilize the currency, control inflation and improve the regulation of 
commercial banks have actually made the situation worse.  
 How does Mongolia assess the steps taken by its central bank to date? 
ANSWER: Within its main objective of monetary policy, Bank of Mongolia shall promote balanced 
and sustained development of the national economy through maintaining the stability of national 
currency, the togrog, and keeping inflation at sustained low level. 
The objective of ensuring sustained low levels of inflation (regarded as the concept of price 
stability) will lead to a wide range of objectives that are aimed at bringing the country to its 
sustainable economic growth path. 
In truth, the main contribution of the Central bank for the country’s growth and development is to 
facilitate the formation of public trust in their fu ture by creating expectations of sustained price 
level. Such price stability provides an incentive to  gain from savings, investment and productivity 
which are essential to economic growth. In addition, sustained low levels of inflation positively influence allocation of income. This is because employment level rises and real income earned by 
vulnerable part of society is maintained due to sustained low inflation. 
 How long does Mongolia plan to keep in place the Price Stabilization Program and other price 
control-type measures? 
ANSWER: As mentioned above, price stability is the only way that monetary policy can influence 
the long-term economic growth. Central bank is not able to sustain long-term economic growth by 
expanding money supply or lowering short term rate excessively compared to inflation rate. 
Central bank is able to affect only the general price level. 
All in all, inflation is a monetary phenomenon. High inflation level is mostly connected with 
oversupply of money in the economy. Although factors such as aggregate demand, technology 
changes, and decline in goods’ prices can influenc e inflation, such influence can be neutralized by 
monetary policy after certain periods. 
2 TRADE AND INVESTMENT REGIME 
2.2 Legal system Page 16, paragraph 2.6: The Secretariat’s Report states: “Under the Law on the Legal Status of 
Lawyers, also implemented in 2013, anyone wishing to be called a lawyer and provide legal advice 
must form a limited liability partnership and be a member of the Bar Association, which requires passing the bar exam. To represent clients in court,  a lawyer must also register with the Supreme 
Court. Foreign lawyers must register with the Ministry of Justice, which requires proof of 
membership of a law society or bar association before they may practice, and their practice is limited to aspects of foreign law.” To date, the United States understands that the Mongolian 
Government’s implementation of this law has been slow and incomplete.  WT/TPR/M/297/Add.1 
 
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   Can Mongolia explain how and when it intends to implement the requirement that all lawyers 
must pass the bar exam?  
ANSWER: The State Great Khural /Parlament/ of Mongo lia has adopted the “Law on Legal status 
of the lawyers” on March 7, 2012. Issues rela ted on who and how shall organize the lawyer’s 
professional selection exams, it’s legal status , reputation, responsibility and self-governing 
competence were regulated by this law.  Every citizen who wishes to become a lawyer shall take professional examination once per year 
according to the “Law on Legal status of the lawyer s”. Official certificate shall be given to a person 
who had passed the examination and he/she shall have an official status of a lawyer.  
2.4 Trade Agreements and Arrangements 
Page 19, paragraph 2.14: The Secretariat’s Report states: “ Since 1 January 2005, Mongolia has 
made some notifications to the WTO but in many cases notifications are lacking . . .  .”  
 Does Mongolia agree with this assessment? If so , in what area(s) does Mongolia believe that 
it needs to improve its adherence to WTO notification requirements? How does Mongolia 
intend to make those improvements? 
ANSWER: Mongolia agree with this statement. We have inquiry points and notification point at the 
related Ministries, however due to lack of capacity we made only 8 notifications since 2005. We are 
working to improve the capacity building of our Institutions to make notifications on time.  
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures Directly Affecting Imports 3.1.7 Standards and other technical requirements 
Page 30, paragraph 3.37: The Secretariat’s Report states: “ One of the main objectives of 
Mongolia's standardization policy is to increase the number of national standards that are identical 
to international standards. Currently, 42% of Mongolia's 6,067 standards are identical to 
international standards .”  
 What steps is Mongolia taking to address this lack of harmonization and align its standards 
and technical regulations with international standards?  
ANSWER : With an assistance of British Standardization Body, Mongolian Agency for 
Standardization and Metrology working on aligning na tional standards with international standards.  
3.1.8 Sanitary and phytosanitary requirements 
Page 30, paragraph 3.40: The Secretariat’s Report states: “ The main laws on Mongolia's SPS 
requirements include the Law on Quarantine and In spection for Transferring of Animals, Plants, 
Raw Materials and Products of their Origin through the State Border. Mongolia has not submitted any SPS notifications to the WTO.”  However, our understanding is that since becoming a Member 
in 1997, Mongolia has submitted two SPS notifications to the WTO. One was submitted shortly 
after Mongolia joined, and the other was a notification on a temporary measure submitted in 2004.  
 Can the Government of Mongolia please clarify this discrepancy? Further, can the 
Government of Mongolia please confirm that th ere have been no additional changes in their 
SPS measures since they acceded in 1997, aside from these two notifications? 
ANSWER:  Law on quarantine inspection for animals and plants, and their raw materials and 
products at the border point , since its adoption in 2002, its has been amended in 2007, 2010 and 
2011 respectively. There is no ban or trade distorting provisions in the above mentioned 
amendments. 
Page 30, paragraph 3.1.8: In 2013, Mongolia’s General Agency for Specialized Inspection (GASI), 
which oversees food imports, changed the validity period for poultry import licenses from six 
months to three months without advance notification or consultation, leading to sever market disruption. Eventually, after extensive discussions wi th affected stakeholders, GASI re-instated the 
six-month validity period.  WT/TPR/M/297/Add.1 
 
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   What steps does Mongolia intend to take to ensure that this type of unnecessary trade 
disruption does not occur in the future? 
ANSWER: Policy objectives the state control over the implementation of legislation and 
implementation in accordance with international standards, and to provide technical guidance and 
direction control and inspection staff professional capacity building, Inspection and industry laws 
and regulations, national standards and regulations and procedures for all activities to assist in the 
development and implementation of the basic functions have. 
Finance, Labor and Social Welfare Inspection Agency  
Finance, labor and social security inspectorate of the budget and government loans and grants, 
state and local use, consumption, storage, protection, employment, occupational safety, and community and social insured assuring the creation of a favourable environment for any adverse 
impacts, and to prevent the risk of inspection in accordance with international standards and 
provide policy guidance and control policies, strategies, programs, plans and projects the professional system of control, strategic planni ng and to comply with the principles-oriented 
functions. 
Health, education, cultural, and scientific monitoring 
Health, education, culture and science control the nature of the adverse effects on human health 
and environment and detect food security-related factors and their consequences due to disease, 
disease prevention, and guaranteed quality drugs and medical care to citizens services, education, culture, science, accessible and high quality servic es, public education, and cultural needs, to 
create a favourable environment for any adverse impacts, and to prevent the risk of inspection in 
accordance with international standards and provide policy guidance and control sector policy, 
strategies, programs, plans, projects and professional development of the system of control, strategic planning and to comply with the principles-oriented functions. 
Infrastructure Inspection 
Control of the building of infrastructure, roads,  transport, energy, information, communication, 
and the lift mechanism and measurement industry to create a favourable environment, public 
health, and a safe working environment and to ensu re the right to live, and any negative impacts 
and risk controls to prevent inspection in accord ance with international standards, implementation, 
and provide policy guidance and control policies, strategies, programs, plans and projects the professional system of control, strategic planni ng and to comply with the principles-oriented 
functions. 
Environment and Tourism, Geology and Mining Inspection Agency 
Environment and Tourism, Geology and Mining Inspec torate of ecological imbalance and to prevent 
adverse effects on the environment, geology, mi ning, industrial safety and public health, and 
create a safe environment, to ensure a favour able environment, and any negative impacts and 
risks aimed at monitoring the implementation of international standards and policy guidance and 
control policies, strategies, programs, plans and projects for the professional system of control, 
strategic planning and to comply with the principles-oriented functions. 
FOOD, AGRICULTURE, INDUSTRY SERVICE OF CONTROL AREA 
Food, agriculture, industry and services, control,  veterinary and plant protection and quarantine, 
livestock breeding and crop varieties, quality cont rol, manufacturing, services and trade to create 
a favourable environment for any adverse impacts, and risk controls to prevent inspection in accordance with international standards, implem entation, and provide policy guidance and control 
policies, strategies, programs, plans and projects the professional system of control, strategic 
planning and to comply with the principles-oriented functions. 
Border inspection office 
Border Inspection of the Mongolian national legislation and international conventions and 
agreements, and implementation of international standards on human quarantine diseases and animal "A" list of infectious and communicable diseases, and plant quarantine diseases, insects and rodents animals and weeds international borders and through his country and foreign 
countries to prevent the spread of products, product quality and safety characteristics, satisfaction, 
and any negative impacts and risks in accordance with international standards, border inspections 
to prevent and control groundwater site implemen tation and provide policy guidance and control WT/TPR/M/297/Add.1 
 
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  policies, strategies, programs, plans and projects the professional system of control, strategic 
planning and to comply with the principles-oriented functions. 
National food security LAVLAGAALABORATORI May adversely affect human health and the environment, chemical, physical and biological factors 
in food, cosmetics, consumer products, drugs, and drinking water, crops, etc. is a modern way to 
accurately and quickly analyse high quality. SSIA food safety a national reference laboratory in accordance with the international laboratory 
accreditation system general requirements for the competence of testing and calibration 
laboratories MNS ISO-17025: 2007, ISO / IEC 17025:2007 international standard accredited laboratory in then. International test proficiency FAPAS-2007 Salmonella involved in microbiological screening test in 
a satisfactory rating from internationally recognized certificate is authorized laboratory. 
Food security, the national reference laboratory for the domestic industry and the import and export of all kinds of food, cosmetics, chemicals,  drugs, medical devices, and biologically active 
food additives, crop and seed materials, their ra w materials and products, etc., bacteriological and 
Chemical Toxicology, pharmacopeias, parazitologi bio test, phytosanitary and quality of seeds and planting technology, mycotoxin and pesticide and nitrate residue analysis officer who provides 
accurate information. 
The capital city, Zamyn-Uud Altanbulag border at and 13 provincial vocational laboratories under the control of technical assistance necessary reag ents, and is responsible for training the staff. 
Office of 
3 of the strategic objectives the public ad ministration and human resources management, 
leadership, cooperation, and legal services, financing and implementation of economic activities; General government operations management be st practices, methodology and general land 
management, organizational structure, management , legal and internal support staff and services; 
Management of information technology, manage ment, culture, capacity building, training, 
development of staff, and their activities and to evaluate the professional level, working 
conditions, social security and strengthen the material base; 
Provide the supervisory authority at the local, international and Mongolian under the laws of foreign countries and international organizations, governmental and non-governmental organizations, businesses, and public relations, information sharing, and contracts to provide all 
the support functions will . 
3.3 Measures Affecting Production and Trade 
3.3.5 Intellectual property rights 
Page 38, paragraph 3.87: The Secretariat’s Report discusses patent application procedures. How 
many patent applications were filed with the Government of Mongolia in the most recent calendar 
or fiscal year? How many of these applications were opposed? What was the average time for the 
determination of whether or not to grant an application? 
ANSWER: Please see the patent application information in above table: 
PATENT APPLICATION INFORMATION 
Top of Form  
YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL 
2010 1 10 7 15 9 24 12 15 12 16 21 19 161 
2011 14 11 21 23 29 8 10 11 31 17 9 25 209 
2012 17 17 11 19 27 27 15 28 22 18 17 11 229 
2013 19 15 18 33 25 28 14 16 22 12 31 34 267 
2014 12 13 26 24 13 0 0 0 0 0 0 0 88 
There are 8 opposition for the patent and 11 opposition for utility model in 2014. 
The average time for the determination of the examination is 12 months. 
Page 38, paragraph 3.88: The Secretariat’s Repo rt discusses the Dispute Resolution Board (DRB) 
of the Intellectual Property Office. How many disp utes came before the DRB in the most recent 
calendar or fiscal year? How many decisions of the DRB in the most recent calendar or fiscal year 
were appealed to the courts? WT/TPR/M/297/Add.1 
 
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  ANSWER: 
Statistic of disputes came before the DRB 
N° Cases 2012 
Year 2013 
Year 2014 
Year Total 
1 International trademark 
registration  3 2 - 5 
2 Utility model  2 1 - 3 
3 Patent  - - - - 
4 Industrial design  2 - - 2 
5 Trademark  2 2 3 7 
6 Appealed to the Court  1 1 1 3 
Page 38, paragraph 3.89: The Secretariat’s Report indicates that Mongolia introduced new 
provisions related to the protection of well-kno wn marks in the 2010 amendments to “The Law on 
Trademarks and Geographical Indications.” Coul d the Government of Mongolia please describe 
these new provisions? 
 The report further indicates that the 2010 revision to “The Law on Trademarks and 
Geographical Indications” elaborates on th e rights of trademark owners and users of 
geographical indications. Could the Government of Mongolia please describe these new rights? 
ANSWER:  The following new provisions related to protection of well-known marks are amended in 
"The Law on Trademarks and Geographical Indications" amendments of 2010. According to the Article 3 and 5 of the Law on Tr ademark and Geographical indication of Mongolia 
"well-known mark" means a trademark that has beco me well known in the territory of Mongolia in 
the relevant sector regardless whether trademark is not registered. The Government Agency shall 
approve the list of Well-known trademark provided in Article 3.1.13 and shall publish in Official 
periodical gazette provided in Article 3.1.14 
The Intellectual Property Office has approved new regulation on recognition as well known 
trademark in 2014 regarding to implementation new amendments.  
 The report further indicates that the 2010 revision to "The Law on Trademarks and 
Geographical Indications" elaborates on th e rights of trademark owners and users of 
geographical indications. Could the Government of Mongolia please describe these new rights? 
ANSWER:  According to the Article 12 of the The Law on Trademarks and Geographical 
Indications" The trademark owner shall have the following exclusive rights in respect of the 
trademark: 
 to own registered trademark 
 to permit others the use of registered trademark 
 to transfer registered trademark to others 
 where the registered trademark is used by others without permission, to request to 
discontinue the use of a mark  
 to request to discontinue the use of a mark by ot hers which is identical with or similar to the 
registered trademark where its use would result in a likelihood of confusion on the part of consumers  
 to claim compensation from guilty person for damages caused by actions/act referred in 
Articles 12.3.4, 12.3.5 of this law. 
 The user of a geographical indication shall have the following rights in respect of the 
geographical indication 
 to use geographical indication for the goods 
 to request to discontinue that act where the registered geographical indication is used by 
others in respect to goods not manufactured in the locality indicated,  WT/TPR/M/297/Add.1 
 
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   to request to discontinue that act where the registered geographical indication is used by 
others in respect to similar goods and therefore takes unfair advantage of, or is detrimental to, the repute of the geographical indication,  
 to request to discontinue that act where using geographical indication in a translated form, 
or accompanied term such as “typical”, “stylish” “structural” and “similar” although origin of 
goods is correctly designated when the registered geographical indication is used by others: 
 to claim compensation for damages caused by actions referred in Articles 26.3.1-26.3.4 of 
this law . 
Page 39, paragraph 3.91: The Secretariat’s Report discusses Mongolia’s protection of geographical 
indications (GIs).  
How many GIs are currently registered in Mongolia? 
ANSWER: Currently 17 GI registered in Mongolia . 
 How many Gl applications are currently pending? 
ANSWER: 5 GI applications are currently pending.  
 With regard to GIs, does Mongolian law respect first-in-time, first-in-right principles?  
ANSWER: Mongolian law respects first- in - right principles to GI. 
 If there is a prior existing trademark, will Mongolian officials reject an application to register 
a Gl that is the same as or confusingly similar to the prior trademark?  
ANSWER: No special provision. 
 Does Mongolian law provide members of the public notice of pending applications to register 
GIs?  
ANSWER: Mongolia has publication system to the public registered trade mark and GI.  
 Are interested members of the public permitted to file a submission opposing a pending Gl 
application orto cancel an existing Gl registration? 
ANSWER: Mongolian law provides opposition system after registration for GI. 
Page 39, paragraph 3.93: The Secretariat’s Report indicates that plant variety protection extends 
only to crops. Are there plans to extend this protection to plants other than crops? 
ANSWER:  Mongolia has plans to extend protection to other plants. Mongolia is planning to join 
with Budapest Agreement and to adopt new law plant protection. 
Page 40, paragraph 3.95: The Secretariat’s Report states: “ Article 12.1.5 of the Competition Law 
prohibits business entities from selling, publishing and distributing to others, scientific, 
technological, industrial or commercial information and secrets without the permission of a patent owner or author .” Does Mongolian law prohibit these same actions when taken by non-business 
entities, such as individuals? Does Mongolian law contemplate that trade secrets are held by 
patent owners or authors? Does Mongolian law prohibit the misappropriation of trade secrets? 
Does Mongolian law provide civil remedies for parties to pursue remedies against trade secret 
misappropriation? 
ANSWER IPOM: No special provisions in laws. 
ANSWER AFCCP:  
1. Mongolian law prohibits these same actions when taken by non-business entities, such as 
individuals. In the Article 29 of the Patent law ( liability for Violation of Patent Legislation and for WT/TPR/M/297/Add.1 
 
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  infringement of Rights of Creators and Patent Ow ners) and the Article 31 of the law on Copyright 
and related Rights (Liabilities for breach of the law on copyright and related rights), they specify 
liabilities for infringements of intellectual property right related laws which are violated by entities, 
including individuals. In addition, according to the related articles of Civil Code, person whose 
copyright is violated, have a right to claim damages. 
2. There are no provisions to define “trade secret s” in patent law, copyright law, competition 
law and other laws. 
Page 40, paragraph 3.95: The Secretariat’s Report  addresses trade secrets. Recalling Article 39.3 
of the TRIPS Agreement, does Mongolian law requir e, as a condition of approving the marketing of 
pharmaceuticals or agricultural chemical products that utilize new chemical entities, the submission of undisclosed test or other data? If so, to what extent does Mongolian law protect 
such data against unfair commercial use and disclosure? 
ANSWER: There are no provisions to define “trade secrets” in patent law, copyright law, 
competition law and other laws.  
3.3 Measures Affecting Production and Trade 
Page 40, paragraph 3.99: The data in Table 3.7 of  the Secretariat’s Report seem to show that 
intellectual property rights enforcement actions, in terms of inspections and other indicators, have 
declined significantly since 2010. Does Mongolia ag ree with this assessment? Does this decline in 
enforcement actions represent better compliance with intellectual property rights laws in Mongolia 
or simply reduced enforcement effort s by the Government of Mongolia? 
ANSWER:  Main reason of the decline of inspections and other indicators is new Amendment to the 
Advertisement law. According to the new Amendment of Advertisement law of Mongolia cancelled 
IP inspection for Advertisement law.  
4.2 Mining and Energy 
Page 50, paragraph 4.38: Please explain the status  of the draft Mineral Law that was submitted to 
Parliament in December 2012. What key changes would be made to existing law based on the new 
State Mineral Policy that was adopted by the Mongolian Parliament in January 2014? 
ANSWER: The State Minerals Policy, which outlines general guidelines and principles of the mining 
sector development until 2025, was adopted in January 2014. The Law to prohibit issuing of new exploratio n licenses was put in force in 2010, and no 
exploration license has been issued since then. Most  of the existing licenses are close to expiring. 
Thus, it seems that virtually there will be no valid exploration licenses in Mongolia in four years. 
Investment in geological exploration sector has almost stopped accordingly. The activities of contractors or companies engaged in drilling, expl oration, geophysical research and geological 
laboratory are also in stagnation.  
All these suggested that the existing Minerals Law should be amended inevitably.  The main amendment the Draft law provides is that  new exploration licenses will be issued but in 
regard to territories determined and permitted by  the State. Under the current law, exploration 
license is issued by way of tender bidding and through direct application or “first come – first served” system. Basically, this provision will re main the same save for certain changes.  
Previously, the tender was organized to issue license for a new area, or if the license was expired, 
revoked, or surrendered, or for the area with mineral concentration. The Draft law suggests that 
licenses for the areas revoked due to failure of licen se holder to pay service fee, or areas partially 
of fully surrendered shall be granted to the firs t applicant who files an application. Since 2006 
exploration license for revoked area has been gran ted by way of tender, however, according to the 
proposed draft law, it can be issued though application procedure.  Thus, is will be possible to issue exploration licenses for about 20% of total area, whereas under 
the existing Minerals Law, there is no area to grant exploration license. 
Another major change was made to the definition of Strategic Mining Projects. In the Minerals Law, a Strategic Mining Project is defined as "a vital mine that greatly affects both national and regional economic and social development as well as affecting national security, or produces/has the 
potential to produce more than 5% of the nati on's GDP. "From the above definition, the part 
concerning "...greatly affects both national and regional economic and social development ..." was WT/TPR/M/297/Add.1 
 
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  removed. Mongolian national GDP and economic pote ntial is growing. In this regard, we should 
c o n s i d e r  l a r g e r  p r o j e c t s  a s  " s t r a t e g i c . "  W e  m a d e  t h i s  c h a n g e  b e c a u s e  o f  o u r  s t r a t e g y  t o  s t o p  considering regional effects as strategically important. But this issue is for the Parliament to decide.  
Another major change will be to switch to ut ilizing only certified specialists on producing 
exploration reports, reserve estimations and fe asibility studies. The certified specialists will 
transfer their work to a nongovernmental organization. So in line with this, we have commenced 
our work on a policy paper designed to transfer some of the government's functions to 
nongovernmental organizations. Furthermore, this  move will be vital in improving the Minerals 
Council of Mongolia, advancing its operations to international standards.  The regulations for mineral processing plants have always lagged behind. New regulations 
concerning these have been added. Requirements for mineral processing plants and related 
regulations have been added for the Parliament and the Ministry of Mining to approve. These regulations will assist domestic processing plants by ensuring stable employment and providing an 
easier mechanism for value-added products. Changes concerning accountability have also been 
made. In the changes made to improve accountability, th e irresponsible attitude of licensees and their 
tendency to deal with any violations th rough monetary penalties are taken into 
These changes are directly linked with the minimum wage. New clauses place the penalties at about 30 - 50 times the minimum wage (on average).  We have added internationally recognized reserve classification and calculation systems to the new 
law. Therefore, studies and resear ch results by Mongolian geologists and specialists in the mining 
industry will be recognized internationally. In ot her words, we are switching to a standardized 
method for feasibility studies as well as adop ting a standardized system for calculating and 
classifying reserves.  
4.3 Services 
Page 75, paragraph 4.125: Does Mongolia have any plans to revise its Land Law or its Land 
Possession Law to allow foreign enterprises and individuals to own land in Mongolia? Please 
explain. 
ANSWER: There are some initiations to revise the Law on Land. However, it is too early to expect 
the result. 
Part II: Questions on the Government Report (WT/TPR/G/297) 
3 ECONOMIC AND TRADE DEVELOPMENTS (2005-2013) 
Page 5, paragraph 3.2: The Government Report states that the Development Bank of Mongolia 
(DBM) was established to finance development projects. Does the DBM, or any other body, publish 
a comprehensive list of planned or in-progress proj ects in Mongolia? If not, does Mongolia intend 
to begin publishing such a list?  
ANSWER: List of 888 projects to promote export g oods and export supporting imports. It has 
been announced publicly. More information can be found on website:  http://www.dbm.mn/ .  
3.1 Current Macro economic situation 
Page 6, paragraph 3.11: The Government Report states that the Government of Mongolia seeks to 
promote private investment in infrastructure projects. However, it is the United States’ 
understanding that several recent tenders involvin g infrastructure projects have been delayed for 
lengthy periods of time, re-tendered, or ca ncelled for reasons that remain unclear.  
 What steps is Mongolia taking to promote transparency in this area? 
ANSWER: All Government procurements are going to be web based. E-procurement system is 
introduced into Public procurement procedure in order to reduce human mistakes.  
3.2 External trade, foreign direct investment 
Page 7, paragraph 3.23: The Government Report states: “ High costs for transportation through 
the territories of the Russian Federation, as well as of the PR of China and other obstacles in 
transportation make the transit transportation costly, thus difficult to access the markets in the 
EU, the U.S., Japan and the Republic of Korea… Addressing these problems also requires additional WT/TPR/M/297/Add.1 
 
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  technical assistance. ” What specific forms of technical assistance does Mongolia believe are needed 
to address these problems?  
ANSWER: Consulting services and strengthen institutional system of related Government agencies 
may address the above mentioned problems.  
Page 8, paragraph 3.29: The Government Report states: “ The Government aims to pursue the 
trade policy that would facilitate the one-sided structure of exports .” Please explain what is meant 
by “one-sided structure of exports.”  
ANSWER: By One sided structure meant most of the exports goes to the one market. Export 
items are very few, mostly raw materials. The Go vernment aims to pursue the trade policy that 
would facilitate the one-sided structure of exports.  Within this framework, the objectives are to 
diversify exports, promote new products, improve their competitiveness, reduce trade barriers, 
develop business relations with the South and North Eastern Asia and Europe, as well as actively 
work towards including more Mongolian products in the GSP schemes of developed countries. 
Page 8, paragraph 3.34: The Government Report discusses the 2013 Investment Law and the 
Mongolian Government’s intent to make it easier for foreign investors to invest in Mongolia. It is 
our understanding that this law includes a US$100,000 capital requirement per foreign investor. Please explain how this requirement works. What is the reason for maintaining this requirement?  
ANSWER: According to the previous Investment Law of 1993, the foreign invested company was 
considered as an entity established in accordance with the legislation of Mongolia, of amount of minimum investment of US$100 thousand or equivalent amount in Mongolian tugriks in Mongolia for each foreign invested company. The new Investment Law of 2013 is replaced it by new 
regulations which is each foreign investor to invest at least US$100,000. Thus it’s considered that 
investment could be more actual and having quality. This qualitive increase is also aimed to leave space for the SME’s to be more competitive.  
Page 10, paragraph 3.44: The Government Report notes that the Export Promotion Program was 
established in order to increase Mongolia’s expo rt revenues, ensure proper structure in foreign 
trade, support exports, and provide efficient fund ing for export activities. Please describe this 
program in more detail. What support, funding and other incentives are being or will be used? 
ANSWER: The program objectives are as follows: 
 To establish an institutional system for the exporters to enable them enter new markets and 
provide them with "technical" supports such as market research and marketing 
consultations. 
 To establish an optimal system and institutional climate to provide financing for the 
exporters. 
 To create an institutional climate to reduce financial and other expenditures of the 
exporters. 
 To set up an institutional framework to implement “Single window” policy to support exports 
and export-supporting imports. 
 To reduce the risks of export and import  processes and improve financing framework.  
This program will be implemented within 2013-2018. The Export promotion program will be funded from sources as follows: 
 State budget; 
 Short term loan provided by Mongol /central/ bank;  
 Loan and grant provided by foreign countries, international bank and organizations; 
 Foreign investment and domestic private investment;  
 Other.  WT/TPR/M/297/Add.1 
 
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  5 MULTILATERAL TRADE COOPERATION 
5.1 Mongolia and the World Trade Organization 5.1.4 Services Page 15, paragraph 5.10: The Government Report notes a need for technical assistance in the 
area of services. Can Mongolia describe with more specificity the technical assistance that it 
believes is needed? 
ANSWER: The technical assistance in the area of services is needed to as follows: 
 To improve statistics of trade in services; 
 To improve capacity building to governmental organizations with trade in service related; 
 To strengthen NGOs for the trade in services; 
 To develop PPP in area of trade in services . 
5.1.6 Rules and Regulations 
Page 16, paragraph 5.16: The Government Report notes a need for technical assistance in the 
area of trade remedies. Can Mongolia describe with more specificity the technical assistance that it 
believes is needed?  
ANSWER: The technical assistance is requested more in area of trade facilitation. In order to 
facilitate trade and to coordinate the activities of states organizations related trade will be 
considered ''Single-window'' which is for fore ign trade facilitation in governmental level. 
5.1.7 Trade Related Aspects of Intellectual Property Rights 
Page 16, paragraph 5.17: The Government Report notes a need for technical assistance with 
regard to Mongolia’s implementation of the TRIPS Agreement. Can Mongolia describe with more 
specificity the technical assistance that it believes is needed? 
ANSWER: Mongolia need training IP officials, inspectors and enforcement officials such as customs 
officers, police officials prosecutors and judges for define counterfeited goods or to decide 
penalties or remedies on infringement IPR and for development IP laws specially on compulsory 
license for pharmaceutical products to implementation of the TRIPS Agreement and monitoring equipment or system for controlling on implementation IP Laws.  
 WT/TPR/M/297/Add.1 
 
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  ADDITIONAL FOLLOW-UP QUESTIONS FROM THE UNITED STATES 
Questions based on Report by the Secretariat (WT/TPR/S/297) 
3.3.4 Government Procurement: paragraph 3.77, page 37 
In an answer to a question from Canada (Page 8 of RD/TPR/348) and Chinese Taipei (Page 46 of 
RD/TPR/348), Mongolia noted that it is “planning to make survey to joining the GPA but currently 
it is impossible to express the exact time of the initial offer.”   Does Mongolia have a timeframe for when it will begin this survey? 
ANSWER: Government of Mongolia is planning to start the survey 3rd Quarter of 2015 . 
 WT/TPR/M/297/Add.1 
 
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  TURKEY 
THE SECRETARIAT REPORT 4.2.1.1 Features, pp. 48, para. 2.28 
It is mentioned in the report that “Nearly all production of minerals and oil is exported, except for 
coal where a significant amount is consumed domestically for heating and electricity generation. 
Therefore, the trends in the volume of exports ar e similar to the trends for quantities produced. 
However, the total value of exports also depends o n  p r i c e s  a n d ,  i n  t h e  c a s e  o f  c o p p e r ,  e x p o r t  
volumes have been fairly steady over the past few years while export values have fluctuated 
considerably (Table 4.8). Most minerals are exported to China except for fluorspar, and gold; fluorspar goes to the Russian Federation and Ukraine and gold, in most years, to Canada.” 
1.1.  Given that China’s recent diversification into green products and services significantly 
reduced the demand for Mongolia’s main minerals  in 2013, how does Mongolia plan to overcome 
the struggles to access new markets for its minerals? 
ANSWER: Mongolia will export its mining products mostly to our southern neighbour China, but 
will seek for the third market in the long run. 
4.3.3.3 Rail Transport, pp.71, para. 4.110 
It is mentioned in the report that “The Mongolian Railway Authority is the railways regulator. It has 
the authority to issue licences for the construction of new railways. State Policy on Railway 
Transportation in Resolution No. 32 by the Parliament on 24 June 2010, sets out an ambitious project for railway construction of 1,100 km in the first phase, 900 km in the second phase, and 3,600 km in the third phase. The first phase would link OyuTolgoi copper/gold mine and 
TavanTolgoi coal mines to the existing line crossing the country and link this existing line to the 
spur of the Trans-Siberian line in the east of Mongolia. Construction under phases 1 and 2 started in 2013, with a projected cost of US$5.2 billion and completion date in 2016.” 
There is a lot of speculation about the so-called "Samurai Bonds” issued by the Japanese Bank for 
International Cooperation. Can Mongolia kindly comment whether these bonds would be used as the monetary source of the long-term, income generating assets such as Tavan Tolgoi? 
ANSWER: Development Bank of Mongolia has issued 30 billion yen or US$290 million worth of 
10-year samurai bonds to invest in much needed infrastructure for the country. The bonds are 90% guaranteed by JBIC, and are aimed at financin g Mongolian portion of the joint projects to be 
implemented by Mongolia and Japan. Mongolia and Japan have signed a medium-term cooperation 
document outlining the areas of cooperation in industry and public infrastructure projects.  
THE GOVERNMENT REPORT 3 ECONOMIC AND TRADE DEVELOPMENTS (2005-2013) 
3.3 Legal and Structural Changes in External Trade, pg. 10, para. 3.44 
It is stated in the Government Report that, “On the purpose of establishing an institutional 
framework in order to increase Mongolia’s export revenues, ensuring proper structure for foreign 
trade, supporting exports and providing efficient funding for export activities, Export Promotion 
Program is adopted in 2013 and started its implementation.” 
Could Mongolia kindly provide further information about the above mentioned program?  
ANSWER: The program objectives are as follows: 
 To establish an institutional system for the exporters to enable them enter new markets and 
provide them with "technical" supports such as market research and marketing consultations. 
 To establish an optimal system and institutional climate to provide financing for the 
exporters. WT/TPR/M/297/Add.1 
 
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   To create an institutional climate to reduce financial and other expenditures of the 
exporters. 
 To set up an institutional framework to implement “Single window” policy to support exports 
and export-supporting imports. 
 To reduce the risks of export and import processes and improve financing framework. 
This program will be implemented within 2013-2018. The Export promotion program will be funded from sources as follows: 
 State budget; 
 Short term loan provided by Mongol /central/ bank; 
 Loan and grant provided by foreign countries, international bank and organizations; 
 Foreign investment and domestic private investment; 
 Other. 
Are there any sectorial differences in terms of incentives under the program? ANSWER: There is no big sectorial differences under the program. Export promotion program is 
focusing on the exporting of non-mineral goods for export diversification. Export structure will be 
changed through influence of increased non-mining goods export. /21% of total export will be from non-mining goods export in next 5 Years/. 
4 MAJOR ECONOMIC SECTORS OF MONGOLIA 
4.1 Mining, pg. 11, para. 4.3 
As stated in the Government Report, “To develop private sector driven, transparent, responsible 
mining sector and in order to create balanced diversified economy in short and medium term, 
Mining sector policy until 2025 adopted by Parlia ment resolution No. 18, 2014. The Government 
set out the policy and directions in mining sector and have been organizing Annual Investment forum such as Coal-Mongolia and Metals-Mongolia since 2009, in order to attract and increase 
investment in geological and mining sector. As  a result of a number of specific measures, 
investment in the sector in the last four years has increased by about 3.4 times.” 
1.2.  Could Mongolia kindly provide details about implemented policies and directions in mining 
sector within the scope of Government Policy? What are the shares of foreign/domestic 
investments among the total investment in the sector? 
ANSWER: 77% of total Investment made in mining sector. 
 WT/TPR/M/297/Add.1 
 
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  CHINESE TAIPEI 
Trade Policy Review of Member MONGOLIA: 
Written Questions from the Separate Custom s Territory of Taiwan, Penghu, Kinmen and 
Matsu 
PART I: RE. REPORT BY THE SECRETARIAT (WT/TPR/S/297) 
SUMMARY 
1. ECONOMIC ENVIRONMENT 
1.1 Recent Economic Developments  
1.2 Trade Performance 1.2.1 Composition of trade 
Pages 10 and 11 (Paras 1.2 and 1.8) 
Mongolia's main export destination is China and its main export products are minerals (section 
1.2). As described in the Millennium Development Goals-based Comprehensive National Development Strategy (Parliament Resolution on  12 February 2008), the authorities intend to 
exploit mineral deposits of strategic importance. At the same time, they wish to diversify 
Mongolia's export products, so that it will be less dependent on mineral resource exports. 
In 2012, however, products relating to the mining industry accounted for some 84% of all 
Mongolia’s exports, compared to 70% in 2007. 
Question(s): 
1. How does Mongolia view the success of its diversification strategy? ANSWER: The economic diversification policy of Mongolia is based on the non-mining sector 
development as follows:  
 Light industry; 
 Food processing; 
 Tourism sector; 
 Agriculture . 
As comparable advantages of Mong olia is considerable as follows: 
 Organic agriculture; 
 Nomadic culture; 
 Wild nature environment .  
2. What plans does Mongolia have to mitigate the continuing problem of over-concentration on 
mining and minerals exports in the future? 
ANSWER:  The Export Promotion Program of Mongolia is focusing on the exporting of non-mineral 
goods for export diversification. Export structure will be changed through influence of increased 
non-mining goods export. By end of the program export of non-mining goods expected to reach 
21% of total export. 
1.2.2 Direction of trade 
Page 11 (Para 1.9) 
China's share in Mongolia's exports increased to more than 90% in 2012 (Chart 1.2).  
Question(s): 
3. In view of the fact that the over-concentrati on of Mongolia's exports on one market makes it 
extremely susceptible to the economic fluctuations of that market, what strategy does 
Mongolia plan to deploy in the future in order to mitigate this situation? WT/TPR/M/297/Add.1 
 
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  ANSWER:  In order to expand export market, Mongolia is negotiating with Japan to sign Economic 
partnership agreement. It will open more possibil ities for Mongolian traders to export and import 
goods and services. 
1.3 Foreign Direct Investment 
Pages 13 and 14 (Para 1.10 and Chart 1.3) 
According to the balance of payments statistics, net foreign direct investment (FDI) increased continuously between 2009 and 2011 from US$496 million (10.8% of GDP) to US$4,620 million 
(53.0% of GDP); they decreased slightly to  US$4,408 million (43.0% of GDP) in 2012 and a 
further decline is expected in 2013 (to about 20% of GDP). Mongolia's FDI stock amounted to US$13,151 million in 2012, compared with US$182 million in 2000 FDI data, based on registration, indicate that FDI is mainly in geological prospecting, oil exploration, mining; and trade and 
catering services FDI was mainly from the EU and China. 
Chart 1.3 (Foreign direct investment inflows,  2007 and 2012) shows that FDI from the 27 member 
states of the EU expressed as a share of Mongo lia's total FDI increased from 5.4% (about US$27 
million) in 2007 to 64.6% (about US$1,961 billion) in 2012. According to the same Chart, FDI 
from China decreased from a share of 67.9% (abo ut US$34 million) to 7.6% (about US$23 million) 
over the same period. 
Question(s): 
4. Could Mongolia please explain the reasons behind the dramatic increase in FDI from the EU in 
the last 5 years, and indicate which of its industrial sectors are attracting the most EU investment?  
ANSWER:  Reason for the dramatic increase in FDI from the EU after 2011 was investment from 
Netherlands that was done in the project OT. In  the last 5 years, FDI from the EU was made 
generally in mining exploration, trade and cate ring services and banking sectors. Also many 
European offshore companies are investing In Mongolia. 
5. At the same time, what are the main reasons behind the significant decrease in the level of 
investment from China, and which of Mongolia's industrial sectors are the most affected? 
ANSWER: FDI from China decreased from a share of 67.9% in 2008 to 7.6% in 2012. It was 
associated with a rapid growth of EU investment, especially investment from Netherlands. China 
remains one of the largest investors in Mongolia in terms of volume and the number of companies. 
2. TRADE AND INVESTMENT REGIME 
2.4 Trade Agreements and Arrangements 2.4.2 Other regional and bilateral agreements 
Page 20 (Para 2.18) 
Mongolia does not have any regional trade agreements with other countries. It is not a member of 
the Asia Pacific Economic Cooperation. However, as of end 2013, Mongolia was in the process of 
acceding to the Asia-Pacific Trade Agreement (APTA) and had several trade-related agreements 
with other countries.  
Question(s): 
6. Could Mongolia please provide us with an update  on the progress of its negotiations with APTA 
member states to join APTA, and wh en it expects to formally join? 
ANSWER: Mongolia has successfully completed negotiations with member States. Our internal 
approval procedure is still in ongoing process. AP TA is an international agreement, which needs to 
be ratified by Parliament of Mongolia. Hopefully, it  will be adopted by Parliament of Mongolia within 
Year 2014. 
Mongolia submitted its official request for membership in APEC in 1993and for the first time 
Mongolia is invited to an APEC high-level meeting in October 2013.  WT/TPR/M/297/Add.1 
 
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  3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.3 Measures Affecting Production and Trade 3.3.4 Government procurement Page 37 (Para 3.78) 
With reference to Table 3.6: Government procurement, based on contracts, 2008-12. 
Question(s): 
7. The value of procurement contracts shown in Tabl e 3.6 is indicated as being in billions of tog. 
Should this not be millions of tog? 
ANSWER: Yes, It should be millions of tug. 
8. Mongolia committed to joining the GPA at the time of its accession to the WTO. When will 
Mongolia be submitting its initial offer? 
ANSWER: Government of Mongolia is planning to make survey to joining the GPA but currently it 
is impossible to express the exact time of the initial offer.  
4.TRADE POLICIES BY SECTOR 
4.33 Transport 
4.3.3.3 Rail Transport Page 71 (Para 4.109) 
The Ministry of Roads and Transport is responsi ble for developing policy and legislation on 
railways. Under Resolution No. 82 of the Governme nt and the 189th Decree of the State Property 
Committee of March 2008, the Ulaanbaatar Railway Mongolian-Russian Joint Stock Venture (UBTZ) became the national operator of railways. UBTZ was 50% owned by RZD of the Russian 
Federation, 25% by the state-owned Erdenes MG L mining company, and 25% by the Mongolian 
Railway State Owned Shareholding Company (MTZ). UBTZ is the sole operator of the railway.  
Question(s): 
9. Does the Ministry of Roads and Transport allocate any subsidies or budgets to railway operators 
or railway constructors to maintain their services? If so, please provide details of the subsidy scheme. 
10.In addition to railway operations, do railwa y operators manage other subsidiary businesses? 
ANSWER: “Ulaanbaatar Railways” Joint Stock Venture for railway infrastructure and transportation 
was founded in 1949 with the ownership of 50:50 of Russia and Mongolia.  
The total length of Ulaanbaatar Railway, includin g the branch lines, is 1815 km, of which 1110 km 
is the main line connecting the Zamiin-Uud – Ir een border-crossing point of Mongolia and the 
People’s Republic of China (PRC) to Sukhbaatar-N aushki border-crossing point of Mongolia and the 
Russian Federation (RF).  
Since its establishment during the socialist system, “Ulaanbaatar Railways” Joint Stock Venture 
has served with supporting operation necessary for the railway transportation (institute for railway 
human resource, hospital for personnel, kinder garden, press publishing, stations, public utility 
service, i.g.,). In the present free market society, the splitting process of these social care activities from the joint venture structure is ongoing in certain stages. 
Page 71 (Para 4.110) 
The Mongolian Railway authority is the railways regulator. It has the authority to issue licences for the construction of new railways. State Policy on Railway Transportation in Resolution No. 32 by the Parliament on 24 June 2010, sets out an am bitious project for railway construction of 1,100 
km in the first phase, 900 km in the second phase, and 3,600 km in the third phase.  WT/TPR/M/297/Add.1 
 
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  Question(s): 
11.Which entity is responsible for the work and the payment for railway maintenance and 
reconstruction? 
12.What are the mechanisms and key factors in constructing new lines? Please also provide details 
of the source of funding and the entities responsible for new construction projects (e.g. central 
government, local government, railway constructors, or railway operators). 
ANSWER: As a result of election held in 2012, the Ministry of Roads and Transportation was 
established by the decision of new Government  based on the Authority of the Railway, the 
Authority of Road and the Authority of Auto transportation under the former Ministry of Road, 
transportation, construction and urban development. The government of Mongolia has granted the 
license with right to “construct-utilize-transfer” to the “Mongolian Railway” State-Owned Shareholding Company for implementing the “New Railway” Project which aims to construct approximately 1800 km of new infrastructure in the first phase stipulated in the State policy on the 
railway transportation and civil works commenced in 2013. The government of Mongolia will invest 
part of the project that has been estimated at US$5.2 billion according to the preliminary feasibility study and national and international investors are invited to finance the rest of the 
project. The government of Mongolia made decisi on to allocate US$400 million from Chinggis bond 
into the “New railway” project and initial inve stment amounting to US$200 million has been made. 
Negotiation about project financing is ongoing with the national and international investors.  
PART II: RE. REPORT BY TH E GOVERNMENT (WT/TPR/G/297) 
3 ECONOMIC AND TRADE DEVELOPMENTS (2005-2013) 3.2 External trade, foreign direct investment Pages8-10 (Paras 3.24-3.38) 
According to Table 3.3 (Mongolian exports) and Ta ble 3.4 (Mongolian imports), the EU was the 2nd 
largest exporting economy to Mongolia and the 3rd largest importing economy from Mongolia. So, the trade relationship between Mongolia and the EU seems quite close, but Table 3.5 does not 
show the share of the EU’s FDI. 
Question(s): 
13.What is the EU’s share of Mongolia's total FDI? 
ANSWER: If the share of FDI from the EU in 2008 was only 2%,then it was increased to 8.7% in 
2009, 26.3% in 2010, 59.2% in 2011, and 68.6% in 2012. If exclude Netherlands’ investment from the total EU investment, other EU countries made 22.8% of the total investment in Mongolia 
in 2011 and 29.4% in 2012. This shows that investment from EU was generally increased.  
Why is this data not given in Table 3.5? ANSWER: Table could be provided upon request. 
e. Foreign Direct investment (FDI) 
Page 9 (Paras. 3.34 - 3.35) 
Law on the Regulation of Foreign Investment in Business Entities Operating in Sectors of Strategic 
Importance enacted in 2012, caused significant decrease of investment. New Investment Law, 
which is approved in 2013, has replaced the controversial Law of Mongolia on the Regulation of Foreign Investment in Business Entities Operating in Sectors of Strategic Importance and has made it easier for foreign inve stors to invest in Mongolia.  
In 2012, foreign direct investment has reached US$3.2 billion and it declined by 33.6% to 
US$1 billion in 2013. 
Question(s): 
14.Considering the very important role of FDI in economic development, could Mongolia please 
describe how it plans to improve its investment environment in order to attract more FDI in the future? WT/TPR/M/297/Add.1 
 
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  ANSWER: A new Investment law was passed in 3 October 2013. In order to improve the 
investment climate, the new law reduced the number of steps required for approval and created a more stable environment for investors. Also by the Law, both foreign and national investors are provided with equal legal protection  and tax and non-tax supports without discrimination . The 
Parliament adopted the State Policy  on Mineral Resources and now the new Mineral Resources Law 
in the way of its adoption. In addition, we are working to create more favourable condition for business, for example by facilitating the visa application procedure for investors. We started a 
project to create an Investor’s grievance management mechanism. Otherwise, we focused on 
reducing investor’s risks. In the coming years, Mongolia will support economic diversification of investments, and we strive to promote and attr act investment in projects that will support 
production and services based on innovation and value addition. We support projects that may 
affect the real sectors of economy directly. 
15.Could Mongolia please also explain the factors behind the decrease in FDI levels since 2011? ANSWER: The decline in FDI was not caused only by the Law on Foreign Investment in Entities 
Operating in Strategic Sectors, which is passed in  2012. There are specific external and internal 
factors that contributed towards the slowdown of  FDI inflows in 2012 and 2013. To some extent, 
the internal regulations including SEFIL have had negative impacts and contributed towards this 
decline. However, and most importantly, global circumstances in investment and also investment 
schedules for certain big projects, such as OT, ha ve had a significant role. While investment is 
reduced, it now has higher quality .We strive to increase the number of large investors.  
5 MULTILATERAL TRADE COOPERATION 
5.3 Free Trade Agreements (FTAs) 
Page 17 (Para 5.20) 
I t  i s  n o t e d  h e r e i n  t h a t  t h e  s u p p o r t  f r o m  t h e  bigger trading partners of the country plays an 
important role in the development of trade relations of such countries like Mongolia, land-locked 
with small and vulnerable economy and dependent on  external trade. As such, the Government is 
making efforts to resolving trade issues that ar e hindered within multilateral trading system 
through bilateral mechanisms. For instance, the negotiations of Economic partnership agreement 
with Japan has launched and studies for possibilities to launch of free trade agreements with other major trading partners. 
Question(s): 
16.Could Mongolia please elaborate further on which countries, besides Japan, are currently its 
priorities with regard to negotiating and signing free trade agreements? 
ANSWER: Mongolia is considering to have more FTAs in near future on purpose of promoting 
trade between partners. Currently, Mongolia is conduc ting studies for possibilities to launch of free 
trade agreements with major trading partners. It is very early stage to determine, with which 
countries to launch FTA negotiations.  
17.What are the main points that Mongolia takes into account when considering which countries 
should be prioritized for FTAs? 
ANSWER: Current trade volume and future expansion will be main consideration to prioritize for 
FTA. 
18.Does Mongolia have any set or proposed specific policies with respect to free trade 
agreements?  
ANSWER: Mongolia is considering to have more FTAs in near future on purpose of promoting 
trade between partners. Currently, Mongolia is conduc ting studies for possibilities to launch of free 
trade agreements with major trading partners. It is very early stage to determine, with which 
countries to launch FTA negotiations.  
 
 WT/TPR/M/297/Add.1 
 
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  BRAZIL 
Page 7 (Para 4) 
Foreign investment is important to the economy for both the exploitation of minerals and for development of other sectors. However, foreign direct investment declined from 53% of GDP in 
2011 to 20% in 2013. To some extent, this was due to the requirements under, and uncertainty 
about the 2012 Law on the Regulation of Foreign Investment in Business Entities Operating in Sectors of Strategic Importance. To address these concerns and to improve the investment 
climate, the 2012 Law and the Foreign Investment Law of 1993 were replaced by the Investment 
Law of 2013 (which applies to both foreign and domestic investment), which simplified investment and registration requirements, and provided greater legal precision to several terms, including the definition of a foreign-invested entity and a foreign government-owned legal entity. 
Questions 
1. In paragraph 4, the Secretariat suggests that the restrictions imposed by the 2012 
Investment Law were partially responsible for the reduction on the share occupied by investment 
in Mongolia’s GDP from the year 2011 to 2013.  
In the view of the Mongolian government, what was the extent of the contribution of the 2012 Law 
to such reduction and in which sense are the changes introduced by the 2013 Law expected to 
address investor’s concerns? 
Please provide information on cases under the previous law in which government has denied 
authorization for investment.  
ANSWER: The internal regulations including Law on Foreign Investment in Entities Operating in 
Strategic Sectors /SEFIL/ have had negative impacts and contributed towards this decline. But the 
decline in 2012-2013 FDI was not caused only by the SEFIL. However, and most importantly, global circumstances in investment and also investment schedules for certain big projects such as 
OT, have had a significant role. 
The law of 2013 replaced the 1993 and 2012 law which used the approval system, changing it to 
the registration system. Current law requires permission only in case foreign state-owned legal 
entity holds 33% and more percentage of the total shares issued by the legal entities of Mongolia 
which deal with business in the mining, banking and finance, media and communication sectors. In that case they shall obtain approval from the Mi nistry of Economic Development. In other cases, 
the investor can start their activities immediately after registration. 
By the 2012 law, the government has issued permission for 10 companies and none has denied . 
Page 21 (Para 2.21) 
Under the new law, no approval is required for private investment, and registration has been 
simplified to a single registration with the Legal Entities Registration Office. Where a foreign-
government-owned legal entity holds 33% or more of the shares in the Mongolian company doing the investing, permission is required from the Ministry of Economic Development in order to invest 
in mining, banking and finance, or media and communications. A foreign-government-owned legal 
entity is defined as a legal entity with at least 50% of its shares owned directly or indirectly by the government of a foreign country. 
Questions 
2. The 2013 law on investment draws a clear line between investments made by a private 
company and those by a foreign government -owned enterprise. The letter may require 
governmental approval, whereas the former only requires registration. What is the reason for the 
different treatment? 
Please provide information on operations that have been submitted for governmental approval 
under the current law.  
ANSWER: According to the 2013 law, permission requires only in case foreign state-owned legal 
entity does investment in the mining, banking and finance, media and communication sectors. Also WT/TPR/M/297/Add.1 
 
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  in case, if foreign state owned legal entity purchases less than 33% of the total share or state 
participation of the investor is less than 50%, there is no need to get permission .  
Page 8 (Para 12) 
Compared to the size of the Mongolian economy, the potential of the minerals sector is very large 
and the total investment in minerals over the past few years and the next few equivalent to 
several times annual GDP. Unfortunately, data for 2013 were not available at the time of writing. Nevertheless, in 2012 compared to 2004, the quantity  of coal, and iron ore that was produced and 
exported increased considerably while the value of exports increased by even more as prices 
increased. As production of copper in OyuTolgoi increases and a the expansion of the TovanTolgoi 
coal deposit leads to greater production, the value and volume of exports will increase further. However, concerns about unused mining licenses le d to a moratorium on new exploration licenses 
in 2010 and the moratorium is to remain in effect  until a new law on minerals has been adopted. 
Page 50 (Para 4.38) 
A draft new Mineral Law was submitted to the Parlia ment in December 2012 but it has yet to be 
passed. Under the current Mineral Law, mineral resources are the property of the State, which 
may grant exploration and extraction rights. Licenc es may only be granted to legal persons, and 
tax payers in Mongolia, formed and operating under the laws of Mongolia; this requirement must 
be met for the full duration of the license. 
Questions 
1. The report from the Secretariat notes that ‘concerns about unused mining licenses led to a 
moratorium on new exploration licenses in 2010 and that the moratorium is to remain in effect 
until a new law on minerals has been adopted’. Could the Mongolian authorities provide additional 
information regarding the concrete steps taken or envisaged to the adoption of the new law on minerals since the draft was submitted to the Parliament? 
Please provide information on the number of the mining licenses that have been provided since 
2010. 
ANSWER:  There are no licenses provided since 2010. However, some licenses may transfer from 
exploration to operational licenses . 
Page 30 (Para 3.37) 
Mongolian standards are developed by the decision  of the National Council of Standardization, 
whose members include representatives of industries, consumers, government bodies, and testing 
establishments. One of the main objectives of Mongolia's standardization policy is to increase the 
number of national standards that are identical to international standards. Currently, 42% of Mongolia's 6,067 standards are identical to intern ational standards. About 40% of the Mongolian 
standards are quoted as mandatory technical regula tions. There are also 662 food standards, of 
which 41.2% are identical to international standards, and 350 agricultural standards, of which 14.6% are identical to international standards. 
Questions 
2. Could the Mongolian authorities provide additional information regarding the concrete steps 
taken to increase the adoption of national agricultural standards that are identical to international standards? 
ANSWER: Mongolian Agency for Standardization and Metrology is working on aligns national 
standards with international standards with assistance of British Standardization Body .  WT/TPR/M/297/Add.1 
 
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  ADDITIONAL WRITTEN QUESTIONS FROM BRAZIL 
Page 8 (Para 12) 
Compared to the size of the Mongolian economy, the potential of the minerals sector is very large 
and the total investment in minerals over the past few years and the next few equivalent to 
several times annual GDP. Unfortunately, data for 2013 were not available at the time of writing. 
Nevertheless, in 2012 compared to 2004, the quantity  of coal, and iron ore that was produced and 
exported increased considerably while the value of exports increased by even more as prices 
increased. As production of copper in OyuTolgoi increases and a the expansion of the TovanTolgoi 
coal deposit leads to greater production, the value and volume of exports will increase further. However, concerns about unused mining licenses le d to a moratorium on new exploration licenses 
in 2010 and the moratorium is to remain in effect  until a new law on minerals has been adopted. 
Page 50 (Para 4.38) 
A draft new Mineral Law was submitted to the Parlia ment in December 2012 but it has yet to be 
passed. Under the current Mineral Law, mineral resources are the property of the State, which 
may grant exploration and extraction rights. Licenc es may only be granted to legal persons, and 
tax payers in Mongolia, formed and operating under the laws of Mongolia; this requirement must be met for the full duration of the license. 
Questions 
1. The report from the Secretariat notes that ‘concerns about unused mining licenses led to a 
moratorium on new exploration licenses in 2010 and that the moratorium is to remain in effect until a new law on minerals has been adopted’. Could the Mongolian authorities provide additional 
information regarding the concrete steps taken or envisaged to the adoption of the new law on 
minerals since the draft was submitted to the Parliament? 
Please provide information on the number of the mining licenses that have been provided since 
2010. 
ANSWER : There are no licenses provided since 2010. However, some licenses may transfer from 
exploration to operational licenses . 
Page 30 (Para 3.37) 
Mongolian standards are developed by the decision  of the National Council of Standardization, 
whose members include representatives of industries, consumers, government bodies, and testing establishments. One of the main objectives of Mongolia's standardization policy is to increase the 
number of national standards that are identical to international standards. Currently, 42% of 
Mongolia's 6,067 standards are identical to intern ational standards. About 40% of the Mongolian 
standards are quoted as mandatory technical regula tions. There are also 662 food standards, of 
which 41.2% are identical to international standards, and 350 agricultural standards, of which 
14.6% are identical to international standards. 
Questions 
2. Could the Mongolian authorities provide additional information regarding the concrete steps 
taken to increase the adoption of national agricultural standards that are identical to international standards? 
ANSWER : Mongolian Agency for Standardization and Metrology is working on aligns national 
standards with international standards with assistance of British Standardization Body . 
 WT/TPR/M/297/Add.1 
 
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  THAILAND 
Page 7 (paragraph 7) Question 1: Mongolia imposes import ban on ethyl alcohol on the grounds of health and national 
security. Could Mongolia elaborate on how the import of ethyl alcohol could affect health and 
national security? 
ANSWER: Mongolia is taking measures on alcohol and tobacco consumption, in regards of health 
and national security reasons. Low quality imported ethyl alcohol caused number of death cases. 
Therefore, Law on anti-Alcoholism and Law on An ti-tobacco newly adopted and more regulations 
are ongoing process .  
2. TRADE AND INVESTMENT REGIME 
Pages 21 (paragraphs 2.20 and 2.25 and Table 2.6) 
Question 2: Mongolia’s Investment Law of 2013 is currently in effect, and Mongolia has concluded 
43 bilateral investment treaties. Thailand would like to learn more about how Mongolia implements 
the Law of 2013 along with these bilateral investment treaties. Are there any key differences 
between the Investment Law of 2013 and the substance under Mongolia’s investment treaties, for 
instance, on investors’ rights, investment facilitation, and conditions for investment? 
ANSWER: Investment Law of 2013 clearly states the legal guarantees of investment, investor’s 
rights, and duties. The new law has a similar content and ideology with BITs. The law says “Should provisions of the international treaties to which Mongolia is a party provide otherwise, the provisions of such international treaties shall prev ail”. In other words, in a conflicting case, one of 
the provisions of bilateral investment agreemen ts concluded with any country with the law, 
bilateral investment agreements are followed . 
Page 21 (paragraph 2.20) 
Question 3: Under the Investment Law of 2013, a foreign-invested entity is clearly defined with a 
minimum equity requirement of foreign investor s’ holding and minimum capital contribution. 
Please explain how this new requirement has affected or will affect the investment made prior to 
the implementation of the Law of 2013.  
ANSWER: This is a minimum investment requiremen t, not equity. This minimum investment 
requirement does not apply to companies that was established before the new law came into force 
on or before November 1st, 2013. However, companies established before the new law came into 
force wants to add an investor, as the new law stat es that given investor wo uld have to invest the 
equivalent of US$100,000 or more. The law is not retroactive . 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
Pages 25-26 (paragraphs 3.20-3.21) 
Question 4: Although Mongolia bounds most of its tariff lines at 20%, its current average applied 
MFN tariff rate is much lower at 5%. In the near future, does Mongolia plan to reduce its bound rates in order to reduce the difference between bound and applied rates? 
ANSWER:  In order to eliminate MNF tariff on certain chemical and pharmaceutical products and 
reduce the difference between bound and applied rates, Government of Mongolia prepared the 
proposal to make amendment to the Parliament  resolution and submitted to the Parliament.   
Page 26 (paragraph 3.23 and footnote 12) Question 5: For 60 tariff lines under HS29 and HS30, Mongolia’s applied MFN rate (5%) exceeds 
the corresponding bound rate (0%). Will Mongolia ad just the applied MFN rate for these tariff lines 
in order to be line with the 0% bound rate? WT/TPR/M/297/Add.1 
 
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  ANSWER:  These 60 Tariff lines consisted of 18 tariff lines of HS29, 42 tariff lines of HS30. In 
order to eliminate MNF tariff on certain chemical and pharmaceutical products, Government of Mongolia prepared the proposal to make amendment to the Parliament resolution and submitted to the Parliament .  
Pages 26-27 (paragraph 3.28 and Table 3.2) 
Question 6: Mongolia applies export and import prohibition on certain goods. What are the reasons 
behind imposing export and import prohibition on products under HS01.01, HS01.02, HS01.04, 
HS01.06 and HS12.11? Does Mongolia have any plan to lift the export and import ban on these 
products in the near future? 
ANSWER: Different excise tax only applied on only alcohol beverages and wines. Due to special 
Government policy on Alcohol consumption, we try to control production of alcohol beverages. It 
consistent of different stages. First stage was adopted in November 2012 as a tariff increase on 
imported alcohol beverages and same time we have  taken measures on licensing domestic service 
supplier with alcohol. Licenses for shop, restaurants, cafes, which serving with alcohol drinks, are 
restricted and in terms of open times and residents of an area. It will continue to increase 
domestically produced alcohol beverages as well. Measures are expected to be implemented from beginning of next year .  
Page 31 (paragraph 3.46 and Table 3.4) 
Question 7: Mongolia applies export taxes on certain products. What are the justifications for the 
imposition of export taxes, especially on unprocessed camel wool (HS5102.19.41, HS5102.19.42, 
HS5102.19.43 and HS5102.19.44)? Does Mongolia have any plan to eliminate export taxes on 
these products in the near future? 
ANSWER: Government of Mongolia does not have plan to eliminate export taxes on those 
products in near future .  
Page 31 (Table 3.4) 
Question 8: Mongolia applies relatively high export taxes on woods and timber (HS4401, 4403, 
4406, 4407, 4409), at the rate of Tog 150,000/m3. Does Mongolia have any plan to eliminate or 
reduce export taxes on these products in the near future?  
ANSWER: Government of Mongolia does not have a plan to eliminate export taxes on those 
products in near future.   
Pages 34-35 (Table 3.5) 
Question 9: Mongolia applies higher excise tax rates on certain imported goods than similar 
domestic products, particularly on alcoholic beverages, wine, gasoline, diesel fuel and passenger 
vehicles. What are the justifications for different excise tax rates on these products, provided that 
Article III:2 of the GATT prohibits WTO Members from  imposing internal taxes or internal charges 
on imported products in excess of those applied to like domestic products? 
ANSWER:  Different excise tax only applied on only alcohol beverages and wines. Due to special 
Government policy on Alcohol consumption, we try to control production of alcohol beverages. It 
consistent of different stages. First stage was adopted in November 2012 as a tariff increase on imported alcohol beverages and same time we have  taken measures on licensing domestic service 
supplier with alcohol. Licenses for shop, restaurants, cafes are restricted and in terms of open 
times and residents of an area. It will continue to increase domestically produced alcohol 
beverages as well. Measures are expected to be implemented from beginning of next year. 
Mongolia does not produce vehicle and gasoline and fuel .  WT/TPR/M/297/Add.1 
 
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  QUESTIONS REGARDING THE GOVERNMENT REPORT 
Pages 11-12 (paragraph 4.10) 
Question 10: Mongolia states that the Government adopted “Food and Agricultural Policy” until 
2015. Thailand is interested in learning more de tail of the work plan. Could Mongolia elaborate 
more on the rationale behind, the progress made thus far, the obstacles and challenges faced? Is 
there a publicly available source for this information? Does the work plan included public-stockholding programme?  
ANSWER: Government of Mongolia aims to promote production of food and deep processing 
industry of agricultural goods. Therefore, “Food and Agricultural Policy” until 2015 has been implementing .  
Page 15 (paragraph 5.3) 
Question 11: On the liberalization of trade in agriculture mentioned in the paragraph, Mongolia 
indicates that there are certain strategic goods on which seasonal tariffs are followed. Thailand is 
interested in learning about these seasonal tariffs. How does Mongolia apply them? What are 
“certain strategic goods” and how are they defi ned? Please elaborate more on the relevant 
information on the measure. 
ANSWER: Meat, milk, wheat, wheat flour and drinking water  are defined as strategic food and it’s 
based on preferences of majority of population. Seasonal tariff shall apply on wheat, wheat flour 
and some vegetables due to shortage of supply of certain food products.  
OTHER QUESTIONS Question 12: Under the current investment regime, does Mongolia provide non-tax investment 
incentives, such as benefits in relation to land ownership, immigration, or foreign labor quotas, 
etc. If so, please provide the details.  
ANSWER: New Law on Investment provides tax an d non-tax promotions for investors.  
Under provision of the Law 12.1 non-tax promotions may be rendered to investors in the following 
forms:  
 to put land lease and use for up to 60 years on the basis of a contract and to extend the 
contract duration once for up to 40 years under the contract`s primary condition;  
 to render support to the investors who are to make investments to the activities of free 
zones, production and technological park and to serve with alleviated regime of registration and checkpoint;  
 to render support to implement creation projects in the infrastructure, sciences and 
educational sectors, to increase the number of foreign workforces and specialists, to exempt them from employment fees and to grant the required permits at eased regime;  
 to render support to carry out innovation projects and to guarantee the financing for 
production of export oriented innovation products;  
 to provide the foreign investors, who have made investment to Mongolia, and their family 
members with multiple visas and residential permissions under the applicable laws of 
Mongolia; 
 other promotions specified in the applicable laws.  
Currently, investors are able to get the following promotions: 
 lease and use land on terms 60+40 years 
 get service with alleviated regime of registration and checkpoint in free trade zones 
 exempt up to 3 investors from employment fees through investor’s cards.  WT/TPR/M/297/Add.1 
 
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  Question 13: Thailand is interested in learning about the requirement of qualifications of 
investment under Mongolia’s current investment regime, including the Investment Law of 2013. 
Specifically, does Mongolia have any requirements on foreign-to-domestic-labor employment ratio or conditions regarding technology transfers? Please provide the details on these or other related 
requirements. 
ANSWER: Investors who operate in Mongolia shall have the following common obligations:  
 to ensure that the products produced, work s conducted and services provided by them 
comply with the national and international standards; 
 to maintain independent accounts and records in respect of the given business entity in 
accordance with the international accounting standards; 
 to provide the tax authorities and other government authorities with the required 
information upon their request within the specified time in order to enable them to 
implement their functions;  
 to conduct environmentally friendly investment activities that respect consumer interests 
and support human development; 
 to pay the social and health insurance premiums of their staff in accordance with the 
relevant legislations; 
 to improve knowledge, experience, qualificatio n and skills of their employees, to focus on 
improvement of the management methodology and to introduce the good governance principles;  
 to respect the national heritage, customs and traditions of the Mongolian people;  
 to make an investment as specified in the Article16.2 of this Law as the legal entity holding 
the stabilization certificate; 
 other obligations specified in the applicable laws. 
In addition, there is a quota of domestic and foreign workers in Mongolia, and depending on the 
specific industry for 1 foreign worker 3-5 Mongolian workers are required to be provided jobs. We 
also have a limit of 2%, and the Government sets quotas annually.  
2. TRADE AND INVESTMENT REGIME 
Page 21 (paragraph 2.20-2.21) 
Question 14: In 2013, Mongolia approved the new investment law. Does the new investment law 
provide additional rights and privileges for fo reign investors in comparison with the 1993 Law? 
Please provide detail on those rights and privileges. 
ANSWER: Under provision of the Law 12.1 non-tax promotions may be rendered to investors in 
the following forms:  
 to put land lease and use for up to 60 years on the basis of a contract and to extend the 
contract duration once for up to 40 years under the contract`s primary condition;  
 to render support to the investors who are to make investments to the activities of free 
zones, production and technological park and to serve with alleviated regime of registration 
and checkpoint;  
 to render support to implement creation projects in the infrastructure, sciences and 
educational sectors, to increase the number of foreign workforces and specialists, to exempt 
them from employment fees and to grant the required permits at eased regime;  
 to render support to carry out innovation projects and to guarantee the financing for 
production of export oriented innovation products;  
 to provide the foreign investors, who have made investment to Mongolia, and their family 
members with multiple visas and residential permissions under the applicable laws of Mongolia; 
 other promotions specified in the applicable laws.  WT/TPR/M/297/Add.1 
 
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  Currently, investors are able to get the following promotions: 
 lease and use land on terms 60+40 years 
 get service with alleviated regime of registration and checkpoint in free trade zones 
 exempt up to 3 investors from employment fees through investor’s cards.  
Page 22 (paragraph 2.25) 
Question 15: Thailand would like to draw Mongolia’s attention to the Agreement between the 
Government of Kingdom of Thailand and the Government of Mongolia for the Promotion and 
Protection of Investments, which was concluded in 2010 but has not yet been signed due to an 
investment policy reform in Mongolia. 
ANSWER: Thailand is of the view that the entry into  force of the Agreement will not only help 
strengthen the foundation of our bilateral relations and cooperation, but also send a positive signal 
to investors that the two countries are keen to further enhance the economic ties and investment 
opportunities. 
Therefore, Thailand would like to seek Mongolia’s clarification on its current policy on bilateral 
investment treaties (BITs) and would appreciate it if Mongolia could kindly inform Thailand, should 
there be any update on Mongolia’s side regarding the said Agreement. 
ANSWER: Mongolia concluded bilateral investment promotion agreements with 43 countries. As of 
today we consider existing agreements and define policies for future action. As for Thailand, we 
have the ability to resolve issues positively. WT/TPR/M/297/Add.1 
 
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  ADDITIONAL WRITTEN QUESTIONS FROM THAILAND 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
2. TRADE AND INVESTMENT REGIME Page 21 (paragraph 2.20-2.21) 
Question 14: In 2013, Mongolia approved the new investment law. Does the new investment law 
provide additional rights and privileges for fo reign investors in comparison with the 1993 Law? 
Please provide detail on those rights and privileges. 
ANSWER : Under provision of the Law 12.1 non-tax promotions may be rendered to investors in 
the following forms:  
 to put land lease and use for up to 60 years on the basis of a contract and to extend the 
contract duration once for up to 40 years under the contract`s primary condition;  
 to render support to the investors who are to make investments to the activities of free 
zones, production and technological park and to serve with alleviated regime of registration and checkpoint;  
 to render support to implement creation projects in the infrastructure, sciences and 
educational sectors, to increase the number of foreign workforces and specialists, to exempt them from employment fees and to grant the required permits at eased regime;  
 to render support to carry out innovation projects and to guarantee the financing for 
production of export oriented innovation products;  
 to provide the foreign investors, who have made investment to Mongolia, and their family 
members with multiple visas and residential permissions under the applicable laws of 
Mongolia; 
 other promotions specified in the applicable laws.  
Currently, investors are able to get the following promotions: 
 lease and use land on terms 60+40 years 
 get service with alleviated regime of registration and checkpoint in free trade zones 
 exempt up to 3 investors from employment fees through investor’s cards.   
Page 22 (paragraph 2.25) 
Question 15: Thailand would like to draw Mongolia’s attention to the Agreement between the 
Government of Kingdom of Thailand and the Government of Mongolia for the Promotion and 
Protection of Investments, which was concluded in 2010 but has not yet been signed due to an 
investment policy reform in Mongolia. 
ANSWER : Thailand is of the view that the entry into force of the Agreement will not only help 
strengthen the foundation of our bilateral relations and cooperation, but also send a positive signal 
to investors that the two countries are keen to further enhance the economic ties and investment 
opportunities. Therefore, Thailand would like to seek Mongolia’s clarification on its current policy on bilateral 
investment treaties (BITs) and would appreciate it if Mongolia could kindly inform Thailand, should 
there be any update on Mongolia’s side regarding the said Agreement. Answer: Mongolia concluded bilateral investment promotion agreements with 43 countries. As of today we consider existing agreements and define policies for future action. As for Thailand, we 
have the ability to resolve issues positively.  WT/TPR/M/297/Add.1 
 
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  JAPAN 
Trade Policy Review of MONGOLIA 
September 24th and 26th, 2014 
Written Questions from Japan 
Report by the Secretariat (WT/TPR/S/293) 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.3 Measures Affecting Production and Trade 3.3.1 Taxes and incentives 3.3.1.3 Excise tax 
(Question1: Page 33, Paragraph 3.65) 
With regard to Excise Tax, Japan believes that  application of different rates between goods 
produced in Mongolia and imported goods is a measure inconsistent with the WTO Agreement. 
Table 3.5 “Excise tax in Mongolia” clearly shows that  for all types of alcoholic beverages up to 25°, 
25-40°, 40°and above, wine, gasoline, diesel fuel, and passenger vehicles, a higher rate is applied 
than for those of domestically produced products . According to the “Report of the Working Party 
on the Accession of Mongolia” issued on 28 June 1996, Mongolia stated that it would apply national treatment with regard to the rate of excise tax to both imports and domestically produced products (paragraph 13, Page 7).  
Japan noted that the United States raised this issue by asking Mongolia when it planned to extend 
national treatment to imports of spirits, beer, and other alcoholic beverages, which were treated differently for excise tax purposes than like domestic products, at the meeting of the Trade Policy 
Review of Mongolia held in 2005. Likewise, the Republic of Korea clearly pointed out different rates 
of excise taxes applied between certain goods pr oduced in Mongolia and imports. Furthermore, 
Korea urged Mongolia to correct this discrimination and stated that it was not consistent with the 
national treatment provision of the GATT. 
Japan, therefore, would like to ask Mongolia when it will correct or eliminate these WTO inconsistent measures.  
ANSWER: Different excise tax only applied on only alcohol beverages and wines. Due to special 
Government policy on Alcohol consumption, we try to control production of alcohol beverages. It 
consistent of different stages. First stage was adopted in November 2012 as a tariff increase on imported alcohol beverages and same time we have  taken measures on licensing domestic service 
supplier with alcohol. Licenses for shop, restaurants, cafes are restricted and in terms of open 
times and residents of an area. It will continue to increase domestically produced alcohol beverages as well. Measures are expected to be implemented from beginning of next year .  
Mongolia does not produce gasoline, diesel fuel, and passenger vehicles. There is no intention to 
differentiate domestic and imported goods.  WT/TPR/M/297/Add.1 
 
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  REPUBLIC OF KOREA 
The 2nd Trade Policy Review of Mongolia 
(Advance Written Questions fr om the Republic of Korea) 
PART I: Questions Regarding the Secretariat Report 
Page7 (Summary Para 4) 
Foreign investment is important to the economy for both the exploitation of minerals and for 
development of other sectors. However, foreign direct investment declined from 53% of GDP in 
2011 to 20% in 2013. To some extent, this was due to the requirements under, and uncertainty 
about the 2012 Law on the Regulation of Foreign Investment in Business Entities Operating in Sectors of Strategic Importance. To address these concerns and to improve the investment climate, the 2012 Law and the Foreign Investment Law of 1993 were replaced by the Investment 
Law of 2013 which applies to both foreign and domestic investment, which simplified investment 
and registration requirements, and provided greater legal precision to several terms, including the definition of a foreign-invested entity and a foreign government-owned legal entity. 
Question 1 
It seems that the Mongolian Authority shares the view of the WTO secretariat that the 2012 Law 
on the Regulation of Foreign Investment in Busi ness Entities Operating in Sectors of Strategic 
Importance has been a factor in the decrease in FDI performance. Could Mongolia please elaborate 
on what particular elements of the 2012 Law had a chilling effect and how they were addressed in the new law of 2013? 
ANSWER: The new law introduces a more liberal business environment. Previously there were 
many approval systems in place for companies willing to enter Mongolia’s market, a lot of 
bureaucracy. The new law now eliminates entry barriers. Obviously some registration system should still be in place, but investors don’t have  to apply for permission any more, they just go 
straight to the registration body with the required documents. In addition, the new law lifts any 
foreign investment limitation for key sectors su ch as mining, telecommunications, banking and 
finance and introduces equal treatment for foreign and domestic investors. It also includes 
international standardized protection clauses such as no expropriation and free repatriation of 
profits. And it establishes the IMA in order to better serve investors . 
Page 21 (Para 2.22) 
The Invest Mongolia Agency, under the Ministry of Economic Development, is responsible for 
promoting and regulating investment in Mongolia, including issuing tax stabilization certificates. 
These certificates fix the maximum corporation tax,  VAT, mining duties, an d import duties at the 
level applicable at the time the certificate was granted. Investments over thresholds set out in the 
law are eligible for stabilization certificates, except for those relating to the production, import or 
sale of tobacco products or alcoholic beverages. The qualifying thresholds for a certificate depend on the sector, the value of the investment and th e region of the country. A qualifying investment 
must also create employment and introduce new technology, and must have completed an 
environmental impact assessment if required by law.  
Question 2 
Has the tax stabilization certificate program been newly introduced as a part of the new 
Investment Law of 2013? What are the core qualifying requirements for the certificates other than 
the investment volume, employment and tec hnology commitments mentioned in the above 
paragraph and table 2.5? Are there going to be an y additional requirements for the renewal of the 
certificates?  
ANSWER: Since the adoption of the new Investment law of 2013, both foreign and domestic 
investors consider/agree that a positive step in streamlining the legal environment  for foreign 
investment  in and creating more favourable business-friendly conditions in Mongolia. For instance: 
 Some types of permission and registration are abolished and market is more opened and 
liberalized 
 Replaced the investment certificate with the State registration process under GASR and 
shortened the period required to start business by up to 30 days WT/TPR/M/297/Add.1 
 
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   Without discrimination to equal legal protection and support is afforded to both foreign and 
national investors under the new law 
 The investment promotions for investors consist of tax and non-tax incentives as well as 
stabilization certificate and investment agreem ent are the main types of tax promotion. 
Page 26 (Para3.23) 
For 60 tariff lines, the applied MFN rate (5%) exceeds the corresponding bound rate (0%) 
Question 3 
What plans does the Mongolian Authority have to modify the applied MFN rate of the tariff lines at 
issue? 
ANSWER:  These 60 Tariff lines consisted of 18 tariff lines of HS29, 42 tariff lines of HS30. In 
order to eliminate MNF tariff on certain chemical and pharmaceutical products, Government of 
Mongolia submitted its proposal to the Parliament. Proposal on MFN tariff is expected to be 
discussed within the Year 2014 .  
Page 36 (Para 3.75) 
Mongolia’s laws and regulations on state-owned enterprises and privatization include the 1996 
Central and Local Government Property Law, Privatization Guidelines (Parliament Resolution No.48 for 2005-08, and Parliament Resolution No.11 for 2010-12). These serve as an official statement 
of the Government’s privatization policies and define enterprise- and sector-specific objectives and 
priorities. Privatization guidelines for 2013-16 are currently being discussed in the Cabinet. 
Question 4 
Could the Mongolian government please elaborate on the privatization program for 2013-16? Is it 
going to be focused on any specific sectors? If so, which sectors? 
ANSWER : Government of Mongolia recently submitte d Privatization Guidelines for 2013-2016 to 
the Parliament of Mongolia. 22 State owned enterpri ses listed to privatize within 3 years of time 
and 13 of them is to fully privatize and 9 of th em is to partially privatize or reduce the State 
ownership. Privatization Guidelines for 2013-2016 is expected to be discussed in 2014-2015 .  WT/TPR/M/297/Add.1 
 
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  THE RUSSIAN FEDERATION 
Advanced Written Questions of the Russian Fe deration to Mongolia at the Second Trade 
Policy Review of Mongolia  (24-26 September, 2014) 
3 Trade policies and practices by measure 
3.3.4 Government procurement  
Page 37, paragraph 3.78 
The report describes that The Public Procurement Law, as amended in 2011 and entered into force 
in 2012, regulates matters concerning the preparation of bidding documents, advertisement, 
opening of tenders, evaluation of tenders, awar d of contracts for public procurement of goods, 
works and services, composition and organization of the Tender Committee, and control over its activities. The law stipulates four kinds of proc urement method (open tendering, price quotations, 
direct contracting, and limited tendering). 
Question No 1: We would appreciate if our Mongolian partners indicated where we could find 
additional information on the official procedure for participation of foreign companies in open 
tendering?  
ANSWER:  In accordance on the domestic legislation, foreign bidders are not completely restricted 
to submit their bids. However, in accordance wi th sub-clause 9.2 of PPLM, The procuring entity 
may not exclude foreign tenderers in tenders for works with cost estimates of more than MNT 
1,000,000,001 (around 6 million USD) and goods and/or  services with cost estimates of more than 
MNT 100,000,001(around 6 thousand USD). In additi on, the procuring entity shall decide whether 
to accept foreign tenderers in other tendering s ex cept those specified in pr ovision 9.2 of PPLM. In 
case of excluding foreign tenderers, the matter shall be indicated in the tender documents and 
invitations for tendering. 
4 Trade policies by sector 
4.1.3 Domestic policy 
Page 44, paragraph 4.14 
The report notes that the main legislation affecting agriculture is set out in the Food Law, Food 
Safety Law, Land Law, Water Law, Law on Protection of Animal Genetics and Health, Law on 
Border Inspection and Quarantine for animal and Plant Products, Law on Cropping, and the Law on Hygiene and Sanitation. 
Question No 2: The Russian Federation is generally concerned about the Food Safety Law entered 
into force on 1 March 2013, new standard ISO and HACCP import certificates were claimed. To 
meet the new requirements, the certification procedure should be undertaken. The procedure takes about 12 months, including the whole manufacturing cycle inspection. According to the TBT 
agreement the law mentioned above is a technical re gulation and in our view it was a subject for 
notification. However, it has not been notified to  the Secretariat. The members of the WTO did not 
have the opportunity to take part in public discu ssion of the draft law and could not prepare for its 
entry into force as the most part of international stakeholders. In this regard, we would appreciate 
if Mongolian partners could delay the submission of these certificates of conformity until 2015.  
ANSWER:  New Food Safety Law entered into force on 1 March 2013. Therefore, only way to delay 
of submission of the new standard ISO and HACCP import certificates is to make amendments to 
the Law. Special Inspection Agency is the implementing body of the Law.  
However, newly established Ministry of Industry ai ms to solve all trade related issues. Action taken 
to solve above mentioned issues will be informed shortly.  
 
__________