RESTRICTED  
WT/ACC/SPEC/TLS/5/Rev.3  
11 December  2023 
(23-8451 ) Page: 1/186 
Working Party on the Accession of Timor -Leste  Original: English  
ACCESSION OF TIMOR -LESTE  
DRAFT REPORT OF THE WORKING PARTY  
Revision  
_______________  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  TABLE OF CONTENTS  
I. INTRODUCTION  ................................................................................................... 5 
DOCUM ENTATION PROVIDED  ....................................................................................... 5 
INTRODUCTORY STATEMENTS ..................................................................................... 5 
II. ECONOMIC POLICIES  .......................................................................................... 6 
- Monetary and fiscal policy  ................................................................................... 8 
- Foreign  exchange and payment system  ............................................................ 10 
- Investment regime ............................................................................................ 11 
- State ownership and privatisation  ..................................................................... 17 
- Pricing  policy  ..................................................................................................... 18 
- Competition  policy  ............................................................................................ 22 
III.  FRAMEWORK FOR MAKING AND ENFORCING POLICIES  ................................... 23 
- Powers of executive, legislative and judicial branches of Government  .............. 23 
- Government entities responsible for making and implementing policies affecting 
foreign trade  ..................................................................................................... 26 
- Division of authority between central and sub-central Governments  ................ 27 
- Description of judicial, arbitral or administrative tribunal or procedures  .......... 28 
IV. POLICIES AFFECTING TRADE IN GOODS ........................................................... 29 
- Trading rights, registration requirements for engaging in importing and 
exporting  .......................................................................................................... 29 
- Trade facilitation  ............................................................................................... 31 
A. IMPORT  REGULATIONS ..................................................................................... 34 
- Ordinary customs duties ................................................................................... 34 
- Other duties and charges .................................................................................. 35 
- Tariff quotas, tariff exemptions  ......................................................................... 35 
- Fees and charges for services rendered  ............................................................ 37 
- Quantitative import restrictions, including prohibitions, quotas and licensing 
systems  ............................................................................................................. 37 
- Import licensing procedures  ............................................................................. 38 
- Customs valuation  ............................................................................................. 39 
- Rules of origin  ................................................................................................... 44 
- Pre-Shipment inspection  ................................................................................... 45 
- Other customs formalities  ................................................................................. 45 
- Application of internal taxes on imports  ............................................................ 45 
- Anti-dumping, countervailing duties, safeguard regimes  .................................. 47 
B. EXPORT REGULATION  ....................................................................................... 48 
- Customs tariffs, fees and charges for ser vices rendered, application of internal 
taxes to exports  ................................................................................................ 48 
- Quantitative export restrictions, including prohibitions, quotas and licensing 
systems  ............................................................................................................. 48 
- Export subsidies ................................................................................................ 49 WT/ACC/SPEC/TLS/5/Rev.3  
 
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  C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  ........................... 49 
- Industrial policy, including subsidies ................................................................ 49 
- Technical barriers to trade, standards and certification  .................................... 51 
- Sanitary and phyt osanitary measures  ............................................................... 54 
- Trade -related investment measures  .................................................................. 65 
- Free zones, special economic zones  .................................................................. 66 
- Government procurement  ................................................................................. 67 
- Transit  ............................................................................................................... 71 
- Agricultural policies  .......................................................................................... 71 
(a) Imports  ............................................................................................................. 71 
(b) Exports  .............................................................................................................. 71 
(c) Internal policies  ................................................................................................ 71 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME ......................................... 73 
1. GENERAL  ........................................................................................................... 73 
- Application of national and most favoured nation treatment to  
foreign nationals ............................................................................................... 75 
- Fees and taxes  .................................................................................................. 75 
2. SUBSTANTIVE STANDARDS OF PROTECTION  ..................................................... 75 
- Copyright and related rights  ............................................................................. 75 
- Trademarks, including service marks  ................................................................ 76 
- Geographical Indications, including appellations of origin  ................................ 76 
- Industrial designs  ............................................................................................. 76 
- Patents  .............................................................................................................. 77 
- Plant variety protection  ..................................................................................... 77 
- Layout designs of  integrated circuits  ................................................................ 77 
- Requirements on undisclosed information, including trade secrets  
and test data  ..................................................................................................... 77 
3. MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS ............ 78 
4. ENFORCEMENT  .................................................................................................. 78 
- Civil jud icial procedures and remedies  .............................................................. 79 
- Administrative procedures and remedies .......................................................... 79 
- Provisional measures  ........................................................................................ 79 
- Special border measures ................................................................................... 80 
- Criminal procedures  .......................................................................................... 81 
- Transitional arrangements  ................................................................................ 81 
VI. POLICIES AFFECTING TRADE IN SERVICES ....................................................... 82 
VII.  TRANSPARENCY  ................................................................................................ 86 
- Publication of information on trade  ................................................................... 86 
- Notifications  ...................................................................................................... 87 
VIII.  TRADE AGREEMENTS  ......................................................................................... 88 
CONCLUSIONS  ........................................................................................................... 89 WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEXES .................................................................................................................... 91 
APPENDIX  ................................................................................................................ 183  
 
 
 
 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  I. INTRODUCTION  
1. The Government of Timor -Leste  applied for accession to the World Trade Organization in 
April 2015 (document WT/ACC/TLS/1 ). At its meeting on 7 December  2016, the General  Council 
established a Working Party to examine the application of the Government of Timor -Leste  to accede 
to the World Trade Organization, under Article  XII of the Marrakesh Agreement establishin g the 
WTO. The terms of reference and the membership of the Working Party are reproduced in document 
WT/ACC/TLS/2/Rev. 8.  
2. The Working Party met on 1 October  2020, 29 July 2021, 29 April 2022, 30 September 2022, 
20 April 2023, 11 October 2023 and […] under the Chairmanship of H.E.  Mr Rui Macieira  (Portugal ).  
DOCUMENTATION PROVIDED  
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Timor -Leste  (WT/ACC/TLS/3  and WT/ACC/TLS/3/Corr.1 ), the questions 
submitted by Members on the foreign trade regime of Timor -Leste, together with the replies thereto, 
and other information provided by the authorities of Timor -Leste ( WT/ACC/TLS/4 , WT/ACC/TLS/8 , 
WT/ACC/TLS/10 , WT/ACC/TLS/11 , WT/ACC/TLS/12 , WT/ACC/TLS/13/Rev. 2, WT/ACC/TLS/14 , 
WT/ACC/TLS/16 , WT/ACC/TLS/20 , WT/ACC/TLS/24 , WT/ACC/TLS/24/Corr.1 , WT/ACC/TLS/28 , 
WT/ACC/TLS/31  and WT/ACC/TLS/3 3), including the legislative texts and other documentation listed 
in Annex 1 .  
INTRODUCTORY STATEMENTS 
4. The representative of Timor -Leste  said that  his Government  assigned priority to 
WTO membership, as it would help to leverage the on -going improvements in its infrastructure, 
human capital and administrative capacity, to accelerate growth and economic diversification. Timor -
Leste was commi tted to WTO membership. There was a strong political will, across all partisan lines, 
in support of implementation of domestic structural, legislative and policy reforms needed to comply 
with its future WTO commitments. This commitment was supported by the  objectives of 
Timor -Leste's domestic economic and trade policy .  
5. Members welcomed Timor -Leste 's application to accede to the WTO . Recalling the 2002/2012 
Guidelines on LDC Accessions, they pledged to work with Timor -Leste towards this goal. Members 
acknow ledged Timor -Leste's efforts to achieve compliance with WTO rules and expressed their 
readiness to provide assistance.  
6. The Working Party reviewed the economic policies and foreign trade regime of Timor -Leste  
and the possible terms of a draft Protocol of Ac cession to the WTO. The views expressed by Members 
of the Working Party on the various aspects of Timor -Leste 's foreign trade regime and on the terms 
and conditions of Timor -Leste 's accession to the WTO are summarized below in  paragraph s 7 to 336.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  II. ECONOMIC POLICIES  
7. The representative of Timor -Leste informed that Timor -Leste was a low income 
least-developed country (LDC), with a total GDP of US$ 2,017.9 million (in 2019) , US$ 1, 237 million 
(in 2020)  and US$ 1,295 (in 2021) . From 2008 onwards, it had not been dependent on development 
assistance. However, the economy remained fragile and dependent on oil and gas revenues. 
In 2022, Timor -Leste's non -oil GDP was estimated to grow by 3%, following a contraction of - 7.9% 
in 2020, and thereafter an increase by 3.4% in 2021. Fiscal policy remained the key driver of 
economic activity, private investment remained low  (however, it increase d from 4% to 12.2% of 
GDP, in 2020- 2021) , and Timor -Leste's domestic market remained poorly integrated. Since 
independence, the Government had made major improvements to its infrastructure, however, 
internal trade costs remained high and economic activity remained concentrated in the capital. 
Timor -Leste's main trade and economic indicators are provided in Annexes 2(A)  to Annex 2(C) . 
8. The country's vision  was set out in the Strategic Development Plan 2011 – 2030 (SDP), which 
envisioned transformation from a low -income to an upper  middle -income economy  with a  healthy, 
well-educated and safe population by 2030. The SDP recognize d that achieving economic growth 
would require diversification of the economy. The  priority sectors to drive economic diversification 
were downstream petroleum sector, agriculture, tourism, fisheries, lig ht manufacturing and mining. 
Attraction of p rivate investment was key to economic growth. The goal was to have a private 
sector -led market economy by 2030.  The Government was working to improve its perception 
indicators and global position.  
9. The foundations  for the economic reform and growth strategy had been  laid out in 
the Economic Reform and Growth Guides (GRFE)  that set forth guidelines for build ing a free and 
predictable market and achieving compliance with the ASEAN, WTO, World Bank  (WB) and 
Asian  Development Bank (ADB) standards and guidelines. The reforms had focused, namely, on: 
(i) creation of an easy, secure and transparent regulatory framework for the operation of business ; 
(ii) elimination of excessive bureaucracies that raise d costs f or doing business ; (iii) streamlin ing 
processes  for imports and exports ; (iv) strengthen ing of the government  institutions and 
the establishment of effective service delivery systems to the business sectors; (v) development of 
the infrastructure to support  the private sector, such as electrical power production and distribution, 
roads, ports and airports, water, sanitation and hygiene networks; and, (v i) identification of specific 
measures to develop the priority economic sectors.  The reforms  sought  to use Timor -Leste's oil and 
gas re venues  to finance economic diversification.  The Guides had been in force until 2018.   
10. The COVID -19 pandemic had worsened the economic and trade performance of Timor -Leste 
resulting in a decline in GDP, caused by the reduction in the performance of economic agents and 
the contraction of supply and demand, consequences of social distancing, border closing, closing 
companies and lack of investment. I n August 2020, the Government had adopted the Economic 
Recovery Plan  for 2020- 2023 (ERP)  with the aim to respond to the se negative impacts . The Plan  had 
defined a set of short -, medium - and long -term recovery measures, includin g temporary support to 
families and companies, measures to protect employment and guarantee income for families and WT/ACC/SPEC/TLS/5/Rev.3  
 
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  companies in difficulty, seeking to minimize the stagnation of economic activities, contribute to  
economic transformation, create more decent jobs, consolidat e social pr ograms for public 
investment and to chang e economic  structure with the objective to contribute to Timor -Leste 's 
economic growth . In 2020- 2022, the Government had implemented four short-term ERP measures: 
(i) universal Basic Basket program, (ii) recovery su bsidies for the private sector, (iii) contributory 
subsidies for the private sector, and (iv) special support for informal workers.  The Plan had been 
discontinued in June 2023.  
11. A Member asked for  examples on how the Gover nment had improved the business climate. 
In response, the representative of Timor -Leste informed that, for ease of Doing Business, 
Timor -Leste ranked 181st out of 190 countries covered by the World Bank's Doing Business indicators 
for 2020.  He referred to activitie s carried out in 2019- 2020 aiming at the improvement of 
the institutional business climate under Component No. 5 of the Public Administration Reform 
Program 2019- 2023 approved by the Government Resolution No. 38/2020 of 23 September 2020 
(hereinafter referred to as PARP) on bettering the Doing Business ranking and on improving 
the business climate in general. With the technical assistance of the International Financ e 
Corporation (IFC), the Government had put together a Working Group to consolidate the refor m in 
that field  and developed an Action Plan for reforms aimed to simplify activity licensing procedures. 
Developments  with respect to specific D oing Business indicators are  contained in Annex 3 .  
12. He further informed about the adoption of  Government Resolution No.  34/2022 of 
16 November 2022 on "Private Sector Support". In this Resolution, the Government had  recognised 
the need to establish a strategy  needed to implement the legislative and policy requirements  
necessary for the development of  the private sector in Timor -Leste. The objective of this strategy 
was to contribute to the economic growth and prosperity by: (i) increasing  the number of businesses 
operating in Timor -Leste; (ii) increasing  private sector investment; (iii)  increasing  opportunities for 
employment in the private  sector, including for Timorese youth; and (iv) enhancing  the availability 
of credit provided by financial institutions. This strategy focus ed on pr ioritising reforms benefitting  
the private sector, addressing the barriers to private sector development and providing incentives 
and support for  the establishment and operation of  businesses.  
13. A Member further requested to provide information on the Govern ment's efforts to combat 
corruption. The representative of Timor -Leste informed that, o n the Transparency International 
Corruption Index for 2022, Timor -Leste has made good progress overtime and had been ranked 
77th out of 180 countries with an increase of nine score points since  2012.  He outlined the legislative 
framework in this area that included: the Penal Code (Decree- Law No. 19/2009 of 8 April 2009), 
Law No. 3/2004 of 14 April 2004 on " Political Parties ", Law No . 2/2009 of 6 May 2009 on " Protection 
of Witnesses ", Resolution by the National Parliament No. 25/2008 of 10 December  2008 on 
the ratification of UNCAC, Resolution No. 12/2019 of 13 March 2009 on the " Code of Conduct of 
Members of the Government " and, most  recently, Law No. 7/2020 of 26 August 2020 on 
"Anti-Corruption (Measures to Prevent and Combat against Corruption) ". The provisions of these 
acts were detailed in Annex 4. WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Monetary and fiscal polic y 
14. The representative of the Government of Timor -Leste informed that r elevant laws with respect 
to the monetary and fiscal policy and the free flow of capital in Timor -Leste were: (i) Decree -Law 
No. 20/2003 of 13 November 2003 on the Official Currency in Timor -Leste; (ii) Public Instruction 
No. 4/2009 of 2 September 2009 on Importation and Exportation of Cash; (iii) Law No.  5/2011 of 
15 June 2011 on the Central Bank of Timor -Leste (CBTL) Framework; (iv) Law No.  10/2011 of 
14 September 2011 which approved the Civil Code (CC); (v) Law No. 17/2011  of 28 December 2011, 
as amended  by Law No. 4/2013 of 14  August  2013, on the Anti -Money Laundering and Counter 
Financing of Terrorism; and , (vi) CBTL Regulation No.  1/2013 of 6 September 2013 on the Minting 
and Use of C oins. 
15. According to Decree- Law No. 20/2003 and Article 79.1 of Law No. 5/2011, the official currency 
of Timor -Leste was US Dollar. In addition to the US dollar banknotes , the centavos metallic coins  of 
1, 5, 10, 25, 50, 100 and 200 centavos circulated in Timor -Leste  as the substitute to the  US cen ts. 
As specified by Decree- Law No. 20/2003, these  coins, which  were issued  by the Central Bank of 
Timor -Leste  (CBTL), could  become the legal tender and ha d the authenticity to be utilized in any 
public or private transactions. However, Timor -Leste still ma intain ed the US Dollar as its sole legal 
tender because the centavos coins  were only usable within the country.  
16. Consequently, Timor -Leste did  not have its own specific currency policy . It was  not yet 
entrusted with the main instruments aimed at controlling the supply of money, inflation rate, or 
interest rate in order to ensure price stability. However, the existing regime was viewed as transitory. 
As per Articles 79.1 and 79.3 of Law No. 5/2011, US Dollar  had a mandatory legal tender status in 
Timor -Leste  until a specific currency regime was defined and implemented pursuant to 
the Constitution . As of 2023 , there wa s no indication of when Timor -Leste might adopt its own 
currency. The Gov ernment  had entrusted the CBTL to undertake research to study such a possibility.  
17. Once a specific currency regime wa s developed in Timor -Leste, the powers and responsibilities 
with respect to the definition and implementation  of the monetary policy and the  issuance of the 
country 's own currency w ould be exclusively entrusted to the CBTL  (Article 143 of the Constitution) . 
The CBTL wa s an autonomous entity  independent from the Government  and the National Parliament. 
Such independence and autonom y in the performance of its duties were assured, inter alia , by the 
fact that the Governor, Vice -Governors an d non -executive members of the B oard of D irectors of the 
CBTL could not, as a rule, be removed from office, except under specific grounds as provided for in 
the relevant legislation  (Articles 49 and 50 of Law No. 5/2011) . 
18. The CBTL 's portfolio could  include the following foreign assets: (i) gold or other precious 
metals held under the Bank 's custody, including account balances representing gold and other 
precious metals; (ii) banknotes and coins denominated in freely convertible foreign currencies held 
or under the Bank 's custody; (iii) cash or short -term interbank balances and deposits deno minated 
in freely convertible foreign currencies, and held in the CBTL 's accounts, on the books of foreign 
central banks or international financial institutions; (iv) readily -negotiable debt securities issued or WT/ACC/SPEC/TLS/5/Rev.3  
 
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  accredited by foreign Government s, central b anks, or international financial institutions; (v) bonds 
with international financial institutions resulting from repurchase, sale and purchase agreements, 
and securities lending agreements in the case of the debt securities mentioned in (iv);  (vi) special  
drawing rights held in Timor -Leste 's account with the International Monetary Fund (IMF); and , 
(vii) Timor -Leste 's reserve position with the IMF.  
19. Due to the limitations on monetary policy, aggregate macroeconomic balance primarily 
depended on fiscal polic y. Government expenditure was mainly funded by offshore petroleum 
production. Consequently, Timor -Leste had minimal government debt. Since independence, 
the Government had maintained macroeconomic stability with inflation briefly exceeding 10% in 
2011 and 2012, but generally kept to single digits. As of June 2022, the inflation in Timor -Leste was 
8.0%, on average. Meanwhile, the Government 's estimated inflation range was 4% -6%, as set out 
in the Government 's Strategic Development Plan.  
20. Timor -Leste's public finance wa s highly dependent on revenues from the oil and gas sector . 
It corresponded to around 74% of the 2021 State Budget (US$ 1.88 billion). In this  light, in addition  
to the  ongoing economic reform, the Government wa s implementing  a fiscal reform , consisting of  
two major and complementary interventions, aimed at:  (i) generating more financial resources in 
the framework of a modern tax system, and (ii) having a more balanced budget. To that end, current 
sources of revenue were being reassessed, along with means to reform expenditure.  Specifically, to 
improve revenue collection , the Government had modernized the legislation by  revising the Customs 
Code in 2017 and was planning to revise  the Taxes and Duties Act and to introduce  the Value Added 
Tax (VAT) , as two main components of the fiscal reform  (as described in s ections "Trade facilitation" 
and "Application of internal taxes to imports" ). The development  of the new policies  follow ed 
the standards and guidelines of the WTO and ASEAN, as if Timor -Leste was a member of th ese 
organizations.  All legislation went through a public consultation process with the  involvement of 
the business community, civil society and other s takeholders.  As a result of this  reform, 
the Government expect ed to develop and implement  an improved tax collection and administration 
system, supported by modern i nformation technology (IT), improved service delivery culture,  
stronger integrity of government officials, and an enhanced accountability system.  
21. He further informed that  in December 2022 his Government had endorsed  the Public 
Financial Management  (PFM)  Reform Strategy for 2022-2027, which  include d the roadmap for 
fiscal reform. The new PFM Reform Strategy focus ed on six areas: (i) strengthening fiscal policy; 
(ii) enhancing resource mobilization; (iii) enhancing policy -based planning and program -based 
budgeting; (iv) strengthening public spending; (v)  strengthening accounting and internal audit;  
and (vi) strengthening external scrutiny and audit . The Strategy  also reflect ed the sustained 
commitment  by the Government  to a modern state -building vision and institutional development 
aligned with interna tional standards . WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Foreign  exchange and payment system  
22. The representative of Timor -Leste informed that the foreign exchange and payment system 
was controlled by t he Central Bank  of Timor -Leste (CBTL), which  had powers and responsibilities to 
define, develop, and adopt applicable foreign exchange rules in the country. In performing its duties 
as the foreign exchange authority, the CBTL was entitled to carry out foreign exchange transactions 
and hold and manage of ficial foreign currenc y reserves . 
23. Prices of all goods and services, and the monetary consideration in respect of all other 
transactions, could  be denominated in units of the official currency of Timor -Leste, i.e., all payments 
arising from or in connection with any contract executed in Timor -Leste, including : (i) payments in 
connection with any debt or obligation, and (ii) payments owed to or by  any public authority in 
Timor -Leste, had to  be made in US Dollars. This d id not mean that the parties to a given contract 
were prevented from denominating the relevant transaction in a foreign currency. However, in such 
a scenario, the debtor could  always  make such payments in local currency at the exchange rate of 
the day on which it wa s due, except if an express waiver to that possibility wa s included in the 
contract . 
24. Currently  there were no foreign exchange restrictions in force in Timor -Leste, except o n 
the transportation of physical currency to and from the country.  Under the cur rent regulations , Public 
Instruction No. 4/2017 of 28 March 2017 on "Importation and Exportation of Cash" , issued by  
the CBTL, both the importation of cash into Timor -Leste and the exportation of cash out of 
Timor -Leste in an amount exceeding US$ 20,000, or its equivalent in foreign currency, required  
the CBTL's prior authorization. The Public Instruction further state d that if the relevant amount of 
cash being im ported and/or exported exceeded US$ 5,000, or its equivalent in other  currency, but 
did not exceed US$ 20,000, or its equivalent in other  currency, it had to  be declared before 
the customs officer at the port of arrival and /or departure.  Further, no cash importation  or 
export ation in excess of US$ 150,000, or its equivalent in other  currency,  was permitted except : 
(i) when  carried out by a bank or financial institution duly licensed to operate in Timor -Leste ; and 
(ii) in exceptional situa tions, where the restriction on the import or export of cash in excess of 
US$ 150,000 was likely to cause serious injury, e.g. in  situations of medical emergency , subject to 
authorization by the CBTL . There were no similar restrictions in respect of wire transfer of funds 
(irrespective of the currency and amounts in question) into or from bank accounts opened in 
Timor -Leste, with the exception  of Know Your Customer and anti- money -laundering rules.  
25. With respect to the procedure applicable for the CBTL's authorization s, the representative of 
Timor -Leste further specified that a pplications  and accompanying documents (applicant's ID, proof 
of ownership of cash, etc.) had to  be submitted to the CBTL at l east five working days before the 
proposed import/export date. Urgent applications could  be submitted in less than five working days. 
The f ollowing fees had to  be paid to the CBTL when an application wa s submitted: (i) for regular  
applications: US$ 100; (i i) for urgent applications: US$ 300.  Applications had to be forwarded to:  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Central Bank of Timor -Leste  
Financial System Supervision Department  
Licensing and Regulation Division  
Address:  avenida Xavier do Amaral 9, Dili, Timor -Leste  
E-mail:   dsflicensing@bancocentral.tl  
26. The CBTL took  decision on authorization before the proposed cash importation/exportation 
date. For urgent applications for authorizations for exportation of cash, decisions had to  be issued 
48 hours prior to exportation, for im port – 72 hours prior to importation. If the CBTL decision wa s 
not issued, an application was deemed to be rejected . The a uthorizations were valid for a single cash 
import or e xport and have a maximum validity of 20 working days from the date of issuance.  
27. Law No. 17/2011 of 28 December  2011 on Anti-Money Laundering and Counter -Terrorism 
Financing (AML -CTF), as amended by Law No. 5 /2013 of 14 August 2013,  was based on some of 
the fundamental principles and rules of the European model, notably those contemplated by 
EU Directives No. 2005/60/EC and No. 2006/70/EC.  Anti-money -laundering rules ha d an impact on 
flows of payments and transfer transactions. In fact , financial institutions were required to refrain 
from performing transactions (including pay ments and transfers), regardless of the amount involved, 
that they suspect ed to be related to money laundering or financing of terrorism and were to  report 
their suspicions to the Financial Information Unit, which had been  created within the CBTL. W hen 
financial institutions (and other entities subject to the AML -CTF) carr ied out one -off transactions in 
an amou nt equal to or greater than US$  10,000, in one or more apparently linked transactions, they  
were required to comply with specific identification duties with respect to their customers and 
beneficial owners of the underlying transaction. The CBTL had developed further guidance on 
Customer Identification, Record Keeping and Transaction Report as issu ed in Public Instruction  
No. 5/2017 of 25 August 2017.   
- Investment regime 
28. Timor -Leste 's major objectives on investment were to promote and encourage both domestic 
and foreign investment and to increase the role of the private sector in the country 's economic 
development  and diversification , namely by the creation of employment opportunities  and 
stimulation of export growth . The system of investment attraction and facilitation was a key area for 
ongoing reform. Private Investment Law  No. 15/2017 of 23 August 2017 had superseded Private 
Investment Law s No. 14/2011 of 28 September  2011 as the main statute governing investment 
operations by both domestic and foreign investors  in the country. This Law had replaced an ex-ante 
screening pro cess for FDIs with  sectoral licensing and a limited negative  investment  list. Government 
Decree No.  2/2018 detailed the regulation and procedures for private investments in Timor -Leste.  
29. The Law was complemented by an Investment Reform Map (IRM)  developed by the 
World  Bank in 2016 -2017,  which was a non -binding policy document outlining promotion and 
attraction of  FDIs in specific sectors of the economy.  The IRM suggest ed the Government of Timor -
Leste to target the following priority sectors  that could be profitable to investors and had a significant 
development impact : (i) sustainable tourism  (religious and pilgrimage tourism, cultural and historical 
tourism, eco and marine tourism, agri- tourism and community -based tourism, adventure and spo rts WT/ACC/SPEC/TLS/5/Rev.3  
 
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  tourism) ; (ii) strategic infrastructure  (roads, airport, seaport (connectivity); transport and 
communication (accessibility); energy such as renewable energy (growth)) ; (iii) construction 
materials  (cement manufacturing, building) ; (iv) agricultural -based industries  (industrial crops 
(e.g. coffee, coconut, candlenut, maize, rice, cocoa, vanilla); forestry (e.g. sandalwood, teakwood, 
bamboo); livestock (cattle, goat, pig, chicken)) ; and (v ) agricultural crops (horticulture 
(e.g. vegetables (broccoli, cau liflower); fruits (banana, mango, avocado, tangerine); legumes (red 
beans, mungbeans, soybeans, peanuts; spices –  peppers, cloves)) . Short-term reforms were needed 
to develop those sectors. T he IRM also suggest ed to target the sectors that could be benefic ial for 
Timor -Leste but we re not yet attractive for investors: ( i) fisheries;  (ii) livestock ; (iii) downstream 
petrochemicals ; and ( iv) garments. Medium and long -term reforms were needed in these sectors . 
TradeInvest Timor -Leste, which was the country's Investment  and Export  Promotion Agency, ha d 
been re- focused to concentrate on the se sectors and had developed a 5- year strategic plan for 2022-
2027 which outlined  this sector prioritization . The Government was committed to formalize the IRM 
with necessary revision to accommodate the current situation  and investment environment  in 
Timor -Leste.  The revised IRM, as approved in October 2023, included information on subsectors 
under each targeted priority sector and investment and export trends in Timor- Leste.   
30. Regarding TradeInvest  Timor -Leste , he clarified that it acted as the Government 's 
one-stop-shop agency for private investors. Re-established by  Decree -Law No. 45/2015 of 
30 December 2015,  as last amended by Decree- Law No. 58/2022 of 24 August 2022,  the Agency 's 
main role was to promote, facilitate, monitor and advocate for  private investment s and exports , by 
centralizing all administrative procedures that must be followed by investors who wished to enjoy 
the tax and customs incentives se t out in the Private Investment Law . TradeInvest Timor -Leste 
website ( http://www.tradeinvest.tl/ ) contained general information about Timor -Leste's investment 
framework and regulations, as well as the latest investment and export  news and descriptions of 
investment and export opportunities by economic sector and geographical location. Responding to 
a Member's question, he added that TradeInvest Timor -Leste put a high value on women’s 
participation in economic activities . In this respect, Decree- Law No. 45/2015 on the "Establishment 
of TradeInvest Timor -Leste" ha d been amended by Decree- Law No. 58/2022 of 24 August 2022  
which specifically mentioned g ender equality as a priority .  
31. He further informed that a mong the  investors'  rights and guarantees enshrined in the Private 
Investment Law were: (i) fair and equitable treatment; (ii) access to courts; (iii) access to 
information ; (iv) land ownership and land use; (v) guarantee against expropriation; (vi) right to 
import and export; (vii) right to access credit; (viii) overseas transfer of fund; (ix) i ntellectual 
property right s; (x) secrecy (respect for professional, banking and commercial secrecy); 
(xi) confidentiality; and (xii) hiring of foreign workers and collaborators . In response to a  Member's 
question, the representative of Timor -Leste added th at the Law specified that all investors, 
regardless of nationality, had the same rights and obligations and enjoyed the same level of 
protection. An exception related to the right to ownership of the land, which was regulated by 
the Constitution.  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 13 - 
 
  32. Specifically, Article 10.3 of the Law provided that all investors enjoyed equal opportunities for 
accessing investment  incentives.  The fiscal (tax and customs) and non -fiscal benefits provided to 
investors under the Private Investment Law  (Articles 29 and 30)  included: (i) 100% income tax 
exemption for a period of between 5 and 10 years, depending on the location of the investment; 
(ii) for the purpose of determining the tax base, up to 100% of expenses incurred with respect to 
the construction and repair of road infrastructure not associated with the exercise of taxable business 
activities, could  be considered as costs; (iii) 100% sales tax exemption for a period between 
5 to 10 years, depending on the location of the investment , in relation to all capital goods and 
equipment used in the construction or management of the investment or re -investment project; 
(iv) 100% services tax exemption, for a period between 5 to 10 years, depending on the location of 
the investment, in relation to developments geared towards the provisions of specific services; (v) 100% customs dut y exemption on imports for a period between 5 to 10 years, depending on 
the location of the investment, in relation to all capital goods and equipment used in the co nstruction 
or management of the investment re -investment project; (vi) guarantee of a minimum five work 
visas for workers or collaborators qualified for supervisory, directing or technical functions as appropriate to the investment project; and (vii) oppor tunity to lease state/private land for 
a maximum period of 50 years, renewable for a period of 25 up to 100 years . The benefits were 
provided based on zones  (see Table 1). 
Table 1. Special benefits based on zones 
Zone  Tax exemption period  
Zone A  5 years for the municipality of Dili, corresponding to the administrative posts of Cristo Rei, 
Dom Aleixo, Na'i Feto and Vera Cruz  
Zone B  8 years for areas corresponding to those located outside the boundaries of the urban area of 
the municipality of Dili  
Zone C  10 years for special zones Oe -Cusse Ambeno and Ataúro  
33. Further, he  clarified that, in line with  Article 34 of the Law and  Government  Decree 
No. 2/2018, the incentives could be granted to investments with a minimum value of US $ 50,000 
(for national investors ); US$  500,000 (for foreign investors ); and US$  250,000 (for joint ventures 
or one of the lega l forms of partnership between foreign and national investors in which the latter 
controlled at least 75% of the share capital of the commercial societies involved). Eligible  
investments and re -investments had to be carried out in the territory of Timor -Leste and to 
contribute  to the socio -economic development of Timor -Leste  (i.e., to contribute to job creation and 
knowledge and technology transfer ). The incentives did not app ly to investments  made by the State 
or by public corporations, including investments made by legal persons where  more than 50% of 
their capital was held by the State or by a public corporation (Article 2.3 of the Law).  Responding to 
a Member 's question, th e representative of Timor -Leste confirmed that these investment incentives 
were consistent with the WTO Agreement on Trade- Related Investment Measures  and were not 
conditioned on the use of domestically -produced products . WT/ACC/SPEC/TLS/5/Rev.3  
 
- 14 - 
 
  34. The regulatory framework included the provision of incentive certificates (Declarations of 
Benefits and Special Investment Agreement) and support to investors by  granting authorizations, 
visas, permits and registration , as well as facilitation services provided by TradeInvest.  To enjoy 
the incentives, investors had to receive an incentive certificate from TradeInvest. The following 
procedure had to be followed: (i) an investor had to submit an application to TradeInvest with other 
legal document s and an investment plan; (ii) TradeInvest carrie d out technical analysis of documents  
and ensur ed that  all necessary documentation was provided; (iii) the document ation was submitted 
to relevant ministries for appraisal; (iv) ministries could provide technical co mments within 
6 working days for reflection in TradeInvest 's report; (v) the report was submitted to Coordinating 
Minister for Economic Affairs as supervisory body of TradeInvest; and (vi) decision for granting of 
the investment incentive certificate was made by the Coordinating Minister for Economic Affairs.  
He informed that fees that had been set under  the previous Private Investment Law (US$  500 for 
Timorese nationals and US$ 2,000 for foreign investors), had been abolished with the entry into 
force of L aw No. 15/2017.  No fee was charged for the services of promotion and facilitation of 
investment rendered, as well as for processing the application for granting declaration of benefits 
and negotiation of a special investment agreement.  
35. He added that, while Timor -Leste was committed to open its economy to foreign investors , it 
had to maintain a number of restrictions, limitations or prohibitions to FDI entry. The Government 
had adopted policies that aimed to steer FDI into sectors, municipalities and investment projects 
that were seen as particularly beneficial to Timor -Leste's economy development and diversification. 
Annex 5 provides a summary of FDI regulations in Timor -Leste.  
36. He further informed that projects of national importance, due to their economic, social, 
technological and environmental impact could be subject to a special investment agreement regime 
to be negotiated with the investor and under the special conditions approved by the Government. Article 10.4 of the Private Investment Law provided exceptions f rom the regime described above for 
investments which, due to their nature or size, were the subject of special agreements, the investments of nationals which may receive support or more favourable treatment from 
the State, and favour investments which cont ribute to national development priorities ( defined 
through the National Strategic Development Plan 2011 -2030 (NSDP)), in particular in special 
economic zones and special industrial areas, as defined in the 2017 Timor -Leste Investment Guide 
(see Section " Free Zones, Special Economic Areas" ). The 2017 Investment Guide had been  revised 
to accommodate the  current situation, in October  2023.  
37. He further clarified that there were restrictions on investment in several sectors (e.g., postal 
services, public communications (which included journalism activities (research, collection and 
treatment of information to public), and establishment of news agencies) , weapon productions and 
distribution, or in zones that could affect protected a reas) which were primarily reserved for 
the State. In response to a Member's  question , he added that the Private Investment Law allowed 
for investments in any economic activity, provided  that they were  permitted by  sectoral  law, without 
requiring a  prior authorization in addition to the procedures established by law (Article 9.1), with WT/ACC/SPEC/TLS/5/Rev.3  
 
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  the exception of economic activities expressly reserved for the exclusive ownership or exploitation 
of the State (Article 9.2). In line with Article 9.3 of the Law an d the relevant sectoral legislation, 
TradeInvest Timor -Leste had drawn up the list of prohibited or restricted activities and sectors 
("Negative List of Investments ") following discussions with the Chamber of Commerce and Industry 
of Timor -Leste (CCI -TL), investors and other economic operators and stakeholders. This  list has 
been provided to the Working Party for consideration. The negative list distinguished between two 
types of sectors, namely: (i) prohibited/restricted sectors where investment activity w as 
prohibited/restricted for both domestic and foreign investors; and (ii) conditional sectors where 
investment activity was conditional for foreign investors ' participation.  The list was an evolving 
document, i.e., at any time sectors could be deleted from or added to the list based on relevant 
legislation.  He further informed that, as per the latest revision of the list, published on 
19 August  2022, several sectors had been removed from the list.  These were: activities related to 
arms and ammun ition production and distribution (which we re no longer reserved for the State); 
publishing activities for books, periodicals, newspapers and other publishing activities and air carrier operator activities (which we re no longer conditional for foreign inve stors' participation).  The latest 
summary of sectorial classification in the negative list can be seen in Table 2. 
Table 2. Summary of the sect orial classification in the Negative List  
Prohibited/restricted for all investors  
(5 sectors)  Conditional for foreign investors ' participation  
(5 sectors)  
1. Criminal activities;  
2. Activities related to offensive of traditional 
customs;  
3. Activities related to environmental protection 
areas;  
4. Postal and courier services; 
5. Funeral service activities.  1. Activities of public communication services and other 
media services;  
2. Urban and suburban passenger land transport 
activities and othe r passenger land transport activities;  
3. Air transport activities; 
4. Gambling and other recreational activities; 
5. Insurance activity.  
38. In response to a Member's  question, the representative of Timor -Leste elaborated that the 
inclusion of activities related to environmental protection areas and postal and courier services in 
the list did not preclude the provision of private environmental services activities, such  as 
environmental consulting services or monitoring environmental conditions for private customers, or 
the provision of delivery services, such as express delivery, that operated independently of 
Timor -Leste's national post.  
39. He further added that in the r are cases of addition of new sectors in the list, (i) the participation 
by foreign investors in a sector added as prohibited/restricted for all investors was to stop; or (ii)  the 
participation by foreign investors in a sector added as conditional to foreig n investors was to stop 
until the foreign investors fulfil the requisites established in the law for their participation.  Changes 
in the list were published by TradeInvest Timor -Leste at its official website. While there was no 
advance notice, as legislati ve changes took time to enter into force, the Government could engage 
in a dialogue with foreign investors to find an understanding between all parties involved.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  40. Prospection , exploration, and production of oil and gas, mining activities,  and public private 
partnerships were also subject to specific legal regimes . Thus, p rospection, exploration and 
production of oil and gas were subject to the  rules provided for in Law No. 3/ 2005 on "Petroleum 
Activities ", which  set forth  the legal regime for all petroleum activities undertaken in the territory of 
Timor -Leste. The Law established a regulatory regime to allow petroleum companies to develop 
petroleum resources in the national territory, with the objective to provide benefits  to Timor -Leste 
and its people and  to ensure stability and transparency in regulating the development of petroleum 
resources. Petroleum contracts t ook the form of production -sharing contracts. Participation of 
the State in the oil operations was subject to  the terms agreed upon with the selected companies in 
the respective production sharing contracts.  
41. Investment in mining activities, including licensing of extractive minerals (mines and quarries) 
for medium and large mineral extractive activities had been  subject to a special legal framework 
defined in Ministerial Order No. 64/2016 of 16 November 2016 on "Specific Rules for Licensing of 
Mineral Exploration Activities " with its objective to regulate the  use of Ornamental Stones, 
Construction Materials. The l egal regime had not applied to small -scale activities undertaken 
manually by small family economic units, in which the amount of extraction did not exceed 30 tonnes 
per month .  
42. The Mining Code (Law No. 12/2021  of 30 June 2021)  had entered into force in January  2022, 
abolishing Ministerial Order No. 64/2016. The  Code was a comprehensive law that regulate d all 
mining activities including recognition, prospecting, evaluation, development, and exploitation, processing, refining and trading. It regulated  administrative procedures for gra nting licen ces and 
authorizations, as well as norms to define concession areas, rights, obligations and rules of 
inspection and supervision. It cover ed all phases of mining activities and include d provisio ns on 
health and safety, environmental protection, inclusion of local content, the labour schemes applicable and penalties, mining registry as  well as transparency and good  practices. Under the 
Code, a right or permit was awarded following a competitive te nder procedure (general rule) or 
direct award (in exceptional cases). The Government c ould proceed with the direct award in the 
following cases (Article 11.1 and 11.2): (i) the area to be released was considered as a new area 
delimitation with insufficient information and data; (ii) the public tender has been deserted; (iii) 
health, safety and environmental risks are associated with the mining area; (iv) for strategic 
minerals; (v) in situations of direct award to the national mining company; and, (vi) artisanal mining 
permits are always assigned by direct contract.  The Code facilitate d the disc overy and exploitation 
of mineral resources in order to promote economic and social benefits to the country . 
43. He added that i nvestment in Timor -Leste could  also be pursued through a Public Private 
Partnership (PPP). The Legal Framework for PPPs had been  approved by Decree- Law No.  42/2012 
of 7 September 2012, as amended by Decree- Law No. 2/2014 of 15 January 2014. The  Government 
ensure d participation of the private sector in building public infrastructure in the country on 
the grounds of public tender, transparency and fair competition.  PPP contracts we re allowed for 
design,  construction , execution , operation and maintenance of infrastructure. The Law regulat ed WT/ACC/SPEC/TLS/5/Rev.3  
 
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  the implementation of PPPs, as well as the approval of PPP procurement procedures in accordanc e 
with the respective project cycle ( which  include d the following phases: Initial Phase, Viability Phase, 
Procurement and Negotiation Phase, and Implementation and Operation Phase).  
44. Responding to  a Member's  request, the representative of Timor -Leste confir med that his 
Government would be ready to join the WTO Investment Facilitation for Development Agreement 
when it has been concluded .  
45. In addition, in response to Member's request, the representative of Timor -Leste confirmed his 
Government's readiness to join the work on Trade and Women's Economic Empowerment and the 
Micro, Small and M edium -sized Enterprises (MSMEs) , once  it becomes a WTO Member .  
- State ownership and privatisation  
46. The representative of Timor -Leste informed about the following state -owned enterprises  
(SOEs)  that were in place in Timor -Leste: (i) Public Company for Administration of Airports and Air 
Navigation of Timor -Leste (ANATL, E.P .); (ii) Timor -Leste 's National Oil Company  (TIMOR GAP , E.P.) ; 
(iii) Radio and Television of Timor -Leste, Public Enterprise (RTTL, E.P.); (iv) Public Electricity 
Company of Timor -Leste (EDTL, E.P.); (v) public enterprise for water supply and sanitation of 
Timor -Leste  – BEE of Timor -Leste (BTL, E.P) ; (vi) Mining Company of Timor -Leste  (CMTL, S.A.); 
(vii) National Commercial Bank of Timor -Leste (BNCTL, S.A.); and (vii i) Company for the 
Management of Industrial Parks (GESPIN, S.A.).  Further infor mation on these SOEs is provided in 
Annex  6.  
47. The SOEs and private sector companies competed on an equal  level playing field. The State 
did not intervene or restrain competition in the sectors where SOEs operated.  Further, all SOEs and 
private companies were treated equally in terms of their business operation. SOEs acted in 
accordance with commercial consid erations with limited  exceptions  as provided in Decree- Law 
No. 14/2003 of 24 September 2003 on "Public Companies" . Such exceptions included the need to 
provide essential services below market price or below the cost of production aiming to provide 
social services not economically viable at a given moment. He added that SOEs were not regulated in a preferential manner to competing private sector firms. Further, in their purchases or sales involving either imports or exports, SOEs acted in a manner consistent with the general principles 
of non -discriminatory treatment, like normal commercial entities or private companies.  
48. In response to a Member's question, he also clarified that a ccording to Article 40 of Decree -
Law No.  14/2003 of 24 September 2003 on "Public Companies", SOEs could be transform ed into 
Private Limited Liability Companies and/or Joint Stock Compan ies/Corporations. The transformation 
was possible upon authorisation by the entity with the competence to create or establish the SOE 
(i.e., the Council of Ministers or the National Parliament). A ccording to Article 6 of the Decree- Law, 
SOEs could also underwrite shares and thus acquire participation of private sector companies for the 
purposes of establishing State  Invested Enterprises (SIEs), provided that authorization to do so wa s 
granted by the Government. SIEs, or "mixed companies", are private enterprises with the 
participation by the State . WT/ACC/SPEC/TLS/5/Rev.3  
 
- 18 - 
 
  49. He further informed that the re were currently no Governmental or non -Governmental 
enterprises, including State Trading Enterprises (STE) , Private Enterprises (PE) or marketing boards, 
with exclusive rights or privileges in export or import operations. In response to a Member's 
question, he clarified that there were no  STEs or PEs with exclusive or special rights or privileges in 
terms of financing as compared to commercial enterprises, whether foreign or domestic. He added 
that t he Government observed  general principles of non -discriminatory treatment for public policies 
affecting imports or exports by private traders. He confirmed that s uch principles w ould continue to 
be observed if STEs were created in Timor -Leste in response to market needs not met  by the private 
sector.   
50. He added that Timor -Leste was yet to develop any policy measures in relation to state trading 
enterprises. He informed that  the Government planned to conduct a thorough review of the public 
policy measures affecting state trading, which were yet to be developed, aiming at ensuring 
compliance with Article XVII of the GATT 1994 and the maximum transparency possible in 
notifications  obligations , so as to permit a clear appreciation of the manner of operation of the 
notified enterprises  and the effect of their operations on international trade . Referring to  paragraph  
21 of section "Monetary and Fiscal Policy", he informed that the Government had approved the Public 
Financial Management Reform Strategy for 2022- 2027, in December 2022.  The scope of this reform  
was extended to public enterprises.   
51. The representative of Timor -Leste confirmed that Timor -Leste would ensure that all 
State -owned, State -invested, and other enterprises with special or exclusive privileg es would make 
purchases of goods and services, whi ch were not intended for governmental use, and sales in 
international trade, based solely on commercial considerations, e.g. price, quality, marketability and availability, and that the enterprises of other WTO Members would have an adequate  opportunity in  
accordance with customary practice to compete for such purchases or sales. In addition, Timor -Leste 
would not influence, directly or indirectly, commercial decisions on the part of State -owned, State 
invested, and other enterprises with special or exclusi ve privileges, including on the quantity, value 
or country of origin of any goods purchased or sold, except in a manner consistent with the 
WTO Agreement. The representative of Timor -Leste confirmed that upon accession Timor -Leste 
would notify and provide information on the activities of all State -owned, State -invested, and other 
enterprises with special or exclusive privileges in accordance with Article XVII of the WTO General 
Agreement on Tariffs and Trade 1994 and the Understanding on that Article. He further confirmed 
that Timor -Leste would notify any enterprise falling within the scope of Article XVII. The Working 
Party took note of these comm itments.  
- Pricing  policy  
52. Timor -Leste adopt ed open economic policies aimed at facilitating business in the country. As a 
young country, Timor -Leste  applied pricing policies  as an interim measure, to safeguard normal 
supply of basic food stuffs at affordabl e and fair prices for the population. The country imported  
most of its basic consumption goods from overseas. It was, therefore, crucial for the existing policies WT/ACC/SPEC/TLS/5/Rev.3  
 
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  to prevent price speculation, lack of supply of essential goods, inflationary price rise and abnormal 
increase in prices .  
53. There were a few legal statutes aimed at ensuring minimum standards or prices in specific 
sectors, namely: (i) Go vernment Resolution No. 20/2008 of 13 August 2008 on P ublic Supply of 
Essential Goods, as amended by Decree- Law No. 27/2019 of 27 August 2019;  (ii) Government 
Decree No. 13/2008 of 13 August 2008, which set forth the Rules for Intervention in Public Supply 
and Prices; (iii) Decree -Law No . 29/2011 of 20 July 2011, approving the framework on Fair Prices 
(this statute establishe d the rules applicable to the intervention of the Government in the pricing of 
certain goods and services deemed es sential to the community); (iv)  Decree -Law No. 28/2008 of 
13 August 2008 on "Public Supply of Essential Goods and Management of the Negative Effects of 
Inflation "; (v) Ministry of Tourism, Commerce and Industry Ministerial Order No. 6/2008 of 
24 December 2008, which set forth measures to Stabilize Prices, Fight Inflation and Prevent 
Speculation; (v i) Ministry of Tourism, Commerce and Industry Minist erial Order No. 6/MTCI/III/2011  
of 23 March 2011, concerning the S ale Price and D istribution of L ocally Produced Maize; 
(vii) Government Resolution No. 13/2012 of 9 May 2012, which set forth the maximum sales margins 
of certain essential goods and measures to fight inflation; and (vii i) Ministry of Tourism, Commerce 
and Industry Ministerial Order No. 1/2013 of 30 January 2013 concerning the I ntervention over 
the Public Supply of R ice and Standardization of P rices. The main goal of these statutes wa s to 
increase social and economic justice with respect to basic products and to facilitate access to these products through fixing fair prices.  The intervention by the Government was done only in exceptional 
circumstances and wa s applicable only to certain goods and services that we re deemed vital for 
the subsistence of the country 's most vulnerable  families.  Price interventions were removed  
following the conclusion of the exceptional circumstances.  
54. Pursuant  to Decree -Law No. 29/2011, certain  products intended for local distribution and sale 
were currently subject to different types of price controls. The Government intervention wa s aimed 
at controlling speculation and mark -up of retail and sales prices in the domestic market at large  for: 
(i) products subject to a maximum price regime –  rice; c ooking oils; f ood intended fo r infants up to 
one year of age; cement; iron rod for building; gasoline for motor fuel,  both in wholesale and retail; 
diesel for motor fuel,  both in wholesale and retail; f uel oils ; and, l iquefied petroleum gases; and, 
(ii) products subject to a monitored price regime –  sugar (retail); rice (wholesale and retail); corn 
(import and marketing retail stages); chicken, rooster, hen meat and other offal (import and 
marketing retail stages); cem ent (marketing retail stages); t axis an d chauffeurs driven hired cars; 
urban collective transports; int erurban collective transports; c ookin g oils (wholesale and retail); 
eggs in  their natural state (retail); pasta; sand and stones for the building  and construction sectors; 
and, m edication to b e specified by the Ministry of Health.  
55. Members asked for further clarification on the minimum price requirements contained in 
the statutes indicated in paragraph 53, the scope of goods covered by such statu te and 
the mechanisms used to maintain the prices above market prices . The representative of Timor -Leste 
responded that there were no polic ies fixing minimum prices (or price floors) in Timor -Leste. WT/ACC/SPEC/TLS/5/Rev.3  
 
- 20 - 
 
  The minimum price s were fixed by inherent market mechanisms.  The purpose of the statues was to 
limit maximum prices, pursuant to  Decree- Law No. 28/2008 that guaranteed  the population 
the ability to obtain essential goods at sustained or subsidized prices.  Decree- Law No.  29/2011 of 
20 July 2011 on "Fair Price"  determined that t he prices of goods and services sold or supplied could  
be subject to the following regimes: (i ) fixing the maximum prices  for retail sales by wholesalers  
and sale s to the final consumer, i.e. to the public; (ii ) establishment of marketing margins; 
(iii) contracted prices; (iv) monitored prices; (v) free prices, whenever they were not subject to 
previous regimes .  
56. With respect to the exceptional circumstances in which the Government could intervene to fix 
fair prices, he referred to Article 1.3 of Decree- Law No. 29/2011 that determined the following 
exceptional circumstances: (i) situations of illicit distortion of market prices through monopolies, 
cartels or collusion for artificial price setting ; (ii) substantial variation of prices with speculative and 
unjustified profit margins given the national and international climate ; (iii) signs of hoarding of basic 
goods ; or (iv) other anomalous situations of market prices which d id not justify or which we re not 
within the scope of intervention under the legal regime of public supply. Such  circumstances could 
include, among others, a rise in international food prices, alimentary e mergencies (natural disaster, 
calamity, etc.), market distortions (price speculation etc.) , drops in agricultural crop, etc.  
57. Pursuant to Article 12 of Decree- Law No.  29/2011 the setting of price regimes  was 
the responsibility of the Prime Minister, or whom ever he delegates, based on a proposal from 
the Ministry of Commerce  and Industry  that defined the scope of goods and services subject to price 
regimes . The establishment of price regimes had to be  announced and published by ministerial order, 
containing a summary of the grounds of intervention, the term of the same, the  products covered, 
and the specifications referred to in the ministerial order . The price regimes we re in force until they 
were expressly superseded and/or replaced by a new ministerial order. 
58. In response to  a Member's question, he elaborated that Decree- Law No. 29/2011 listed goods 
and services that were subject to a fixed marketing margin and a monitored price. However, as per 
Article 5.2 of the Decree- Law, these goods and services could be subjected to different price regimes, 
depending on the market conditions.  The f ollowing products were subject to monitored prices: 
(i) sugar (retail); (ii) rice (wholesale and retail);  (iii) c orn (import and retail);  (iv) chicken meat 
(import and retail);  (v) cement (retail);  (vi) cooking oil (wholesale and retail);  (vii) e ggs (retail);  
(viii) p asta; (ix) sand and stones for the building and construction sectors; (x) m edication to be 
specified by the Ministry of Health ; and  (xi) p ublic transportation services (taxis, rental cars, urban 
collective transport, inter -urban buses).  Table 3 contained the list of products subject to fixed 
marketing  margins.   WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Table 3. Products subject to f ixed marketing margins  
 Wholesale  Retail  
Rice with 5% or less broken rice  10% 15% 
Rice with 5%  or more broken rice  8% 10% 
Cooking  oils 8% 10% 
Food, natural, in powder, preserved or in any form, intended for infants up to 1 
year of age  8% 10% 
Cement  10% 15% 
Iron rod for civil operation  10% 15% 
Engine fuels, irrespective of the lead content, classified by the Timor -Leste 
Customs Tariff / Combined Nomenclature code 2710.11 at the wholesale and 
retail sale  - - 
Motor diesel, classified by the Timor -Leste Customs Tariff / Combined 
Nomenclature code 2710 19 at the wholesaler and  
retail sale  - - 
Fuel oils having a lead content exceeding 1%, classified by the Timor -Leste 
Customs Tariff / Combined Nomenclature code 2710 19  - - 
Liquefied p etroleum gas, classified by the Timor -Leste Customs Tariff / 
Combined Nomenclature Code 2711 13, commercialized in the bottled form  - - 
59. With respect to his  Government's plans to reduce its interventions so that enterprises engaged 
in commercial activitie s set prices according to commercial considerations, he added that the 
intervention measures ha d a temporary character and would not alter the economic system and 
model  away from free market competition , as specified in Decree- Law No. 28/2008 of 
13 August  2008 on "Public Supply of Essential Goods and Management of the Negative Effects of 
Inflation ". The intervention s were to be revoked at any moment once the exceptional  circumstances 
return ed to normal.  
60. The representative of Timor -Leste  added that  his Government, through the Ministry of 
Tourism, Commerce and Industry (MTCI), had run the "Povu Kuda, Governu Sosa" (People Cultivate, 
Government Purchases)  Program to stimulate farmers to crop any agricultural products within 
the national territory . Through this Program,  which had been established in 2008 as a measure to 
respond to the political and economic crisis in Timor -Leste arising since 2006,  prices  were set for 
purchasing agricultural commodities from local farmers, applicable only to rice and maize, which 
were basic cereals for food security in the country. As such, the Government of Timor -Leste had 
establishe d the price for MTCI to purchase those cerea ls, as well as the sale price at municipal 
markets, calculated according to the distance for each municipality. The most recent legal texts on rice and maize we re Ministerial Order No. 32/2017 of 17 May 2017 on "Regulation of Price for of 
Rice for Re -Sale" and Ministerial Order No.  6/MTCI/III/2011 of 23 March  2011 on "Sale Price and 
Distribution of Locally Produced Maize" . The policy had been  part of the Government' s strategy to 
encourage domestic production and to address the future food security needs of the country.  
61. A Member requested the representative of Timor -Leste  to provide budgetary allocations for 
this Program as well as the  estimated value of agricultural production for th e specified crops . In 
response, the representative of Timor -Leste informed t hat the Program had been  implemented by 
the private sectors with a  minimum capital of US$ 5,000 to purchase essential products such as rice 
and maize.  The estimated value of agricultural production, in accordance with the FAO report on the 
positive impact of this support for the essential products (in thousands , US$), was provided in 
Table  4. The Program had been terminated in 2012.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Table 4. Estimated value of agricultural production in Timor -Leste, 2008 - 2012  
US$, thousand  
Description  2008  2009  2010  2011  2012  
Timor -Leste Yield 
Cereals, total 14,427  23,155  24,514  25,861  20,899  
Timor -Leste 
Production Cereals  180,430  255,490  261,816  148,080  182,005  
62. A Member also asked the representative of Timor -Leste  to describe how purchase prices we re 
set under this Program and what production was eligible for the prices.  The representative of 
Timor -Leste clarified that the purchase prices we re set according to the market price of the 
agricultural commodities, whereby the Government purchases rice, maize, beans and other 
agricultural commodities at a subsidized price, i.e. market price plus transportation costs, in 
accordance with Decree -Law No. 28/2008 of 13 August  2008 on "Public Supply of Essential Goods 
and Management of the Negative Effects of Inflation ". 
63. The representative of Timor -Leste  confirmed that from the date of accession, pricing policy in 
Timor -Leste  would be applied in compliance with the provisions of Article s III:4 and XI:1 of the 
General Agreement on Tariffs and Trade 1994 and Article 4 of the WTO Agreement on Agriculture. 
He further stated that in the application of price controls now or in the future, Timor -Leste  would 
apply such measures in a WTO -consistent fashion and take account of the interests of exporting 
WTO Members as provided for in  Article III:9 of the WTO General  Agreement on Tariffs and Trade  
1994. Timor -Leste  would publish the list of goods and services subject to monitoring regimes  and 
any changes to such lists in its Official Gazette. The  Working Party took note of these commitments.  
- Competition  policy 
64. As a result of Timor -Leste 's current level of economic development and private investments, 
the Government  had yet to elaborate its competition policies. Furthermore, as there we re limited 
major corporations or business groups (and no listed companies, as there wa s currently no securities 
exchange) that ha d the ability to control or monopolize sectors of the economy, the country ha d yet 
to establish a national competition authority, although certain public policies aimed at regulating 
specific sectors of the economy had  been approved in the past, and in certain economic sectors 
there were references to the possibility of regulating competition (notably in the telecommunications 
and petroleum downstream sectors).  
65. However, t he Government  recognized  the importance of competition for the strategic 
development of the economy , both domestically and internationally and to promote economic growth 
and development. For this reason, it ha d established a work ing g roup to discuss and prepare 
a Competition  Promotion  Policy, based on international standards. The Policy had been first drafted 
in 2015 and was undergoing a revision. The three expected outcomes of thi s Policy were: 
(i) development of a Competition Law; (ii ) development of a Consumer Protection Policy; and 
(iii) establishment of the National Quality Control Institute  of Timor -Leste ( IQTL) under the Ministry 
of Commerce and Industry  (MCI) . The authorities responsible for the implementation of WT/ACC/SPEC/TLS/5/Rev.3  
 
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  the Competition Promotion Policy were as follows:  (i) the Directorate of External Trade of the MCI;  
(ii) the IQTL; and  (iii) TradeInvest Timor -Leste.  
66. Moreover, the National Parliament ha d passed the Consumer Protection Law No.  8/2016  
of 8 July 2016, which establishe d the legal regime for consumer protecti on and legal assistance , 
defining the functions of the State, the rights of consumers and the role of consumer associations. 
The law appl ied to goods and services supplied, rendered and transmitted by any natural, and legal, 
national and international, public and private persons, who develop, on a professional basis, 
activities of production, manufacturing, exporting, importing, constructio n, distribution, 
transportation or sale of goods and services, with a view to obtaining benefits. Further discussions 
were underway  to define the main areas to be regulated and the required i nstitutional framework to 
ensure law enforcement.  
III.  FRAMEWORK  FOR MAKING AND ENFORCING POLICIES  
- Powers of executive, legislative and judicial branches of Government  
67. The representative of Timor -Leste informed that the Constitution of the Democratic Republic 
of Timor -Leste (hereinafter: Constitution) had been  approved and decreed on 22 March  2002, at 
a plenary session of the members of the Constituent Assembly, elected on the 30 August 2001 and 
acting as the legitimat e representati ves of the Timor ese People.  
68. As provided for in the Constitution, Timor -Leste was a rule of law S tate based on the principle 
of separation of powers and checks and balances, with three separate coordinated branches: 
the Legislative, the Executive and the Judiciary  (Article s 1 and 69 of the Constitution) . In accordance 
with these principles, four organs of sovereignty existed: (i) the President of the Republic; 
(ii) the National Parliament; (iii) the Government ; and , (iv) the Courts  (Article  67 of 
the Constitution) .  
69. The President  of the Republic  was the Head of State  and the Supreme Commander of 
the Defen se Force. Articles 74 to 89 of the  Constitution define d the role a nd powers of the President. 
The President was elected by universal, free, direct, secret and perso nal suffrage, for a five -year 
term (Articles 65.1, 75 and 76). He  was invested and t ook oath before the National Assembly and 
could be re- elected only once (Articles 77.1 and 75.3 of the Constitution) . The President  had 
the power to appoint the members of the Government, upon proposal from the Prime Minister 
(Article 106.2).  Among the President 's powers wa s the power to promulgate or veto L aws passed by 
the National Parliament and Decree -Laws approved by the Government (Article 88), and the power  
to dismiss the Government , if the National Parliament rejected the Government program me for two 
consecutive times  (Article 86(g)) .  
70. The Government of Timor -Leste was headed by a Prime Minister, who wa s nominated by 
the President of the Republic after consultation with the sitting parliamentary parties, considering 
the electoral results and the existence, or not, of political majority party or partisan coalition or 
colligation possible  (Article 106 of the Constitution) . The Government wa s the supreme organ of WT/ACC/SPEC/TLS/5/Rev.3  
 
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  public administratio n responsible for conducting and executing the general policy of the country  
(Article 103 of the Constitution), including the power  to negotiate  and prepare for  accession to 
intern ational treaties  (Article  115.1(f) of the Constitution). It was also vested with legislative powers  
(Article 115.3 of the Constitution) .  
71. The National Parliament was the legislature of Timor -Leste . It had a  unicameral structure and  
consist ed of a minimum 5 2 and a maximum of  65 representatives  elected in secret ballot  elections 
for a five -year mandate  (Article 92 and 93 of the Constitution) . The Constitution did not limit the 
number  of terms that could be served by an elected member of the National Parliament. Under the 
Constitution, the National Parliament ha d the power to  approve legislation  (Articles 95 and 96 of the 
Constitution) , as well as to  approve, denounce or ratify  international conventions, treaties  and other 
international agreements  (Article 95.3(f) of the Constitution) . Accordingly, for Timor -Leste to 
become a WTO Member , the National Parliament would need to ratify the Protocol of Accession  in 
accordance with the Constitut ion. 
72. The representative of Timor -Leste clarified that the Constitution set forth the division  between 
the legislative powers of the National Parliament and the Government . There were: (i) areas where  
the National Parliament h eld exclusive competence  to pass laws, e.g., the State Plan and the  State 
Budget , territorial division of the country, the electoral law and the referendum system, tax policy, 
defence and security policy, declaration of state of emergency  (Article 95.2 of the Constitution) ; 
(ii) areas where  the National Parliament had the primary responsibility to  legislate or could authorize 
the Government  to legislate , e.g., monetary system, banking and financial system, definition of 
crimes, sentences, security measures and their resp ective prerequisites; definition of civil and 
criminal procedure s; organisation of the judiciary and status of magistrates  (Article  96.1 of the 
Constitution ); (iii) overlapping areas where  both the National Parliament and the  Government  could 
legislate  which were not identified in the Constitution, such as public procurement rules ; and,  
(iv) areas of exclusive reserve of legislative powers of the Government , e.g., matters concerning the 
organization and functioning of the Government, including the  organization of public administration 
and creation of autonomous agencies (Article 115.3 of the Constitution) . The Parliament adopted its 
legislative acts in the form of  Laws, while the Government  enacted Decree-L aws. Both Law s and 
Decree- Laws were legislative acts where  distinction was one of form  and not substance. There wa s 
no hierarchy between them . All laws, including those approving, denouncing or ratifying a n 
international convention, treaty or an  international agreement,  and Decree- Laws had to be 
submitted to the President of the Republic for promulgat ion (Articles 73, 85(a) and 88.1 of the 
Constitution)  before publish ing in the official gazette  ("Jornal  da República ", available at: 
http://www.mj.gov.tl/jornal/ ). The continuing effect of laws from before independence is explained 
in Annex 7 .  
73. He added that Timor -Leste legal system adopted the general or customary principles of 
international law (Article 9 of the Constitution). Rules provided for in international conventions, 
treaties and agreements  approved or ratified by Timor -Leste  applied  directly  in its internal legal 
system. All  provisions  that were contrary to such rules  were invalid . WT/ACC/SPEC/TLS/5/Rev.3  
 
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  74. In response to Member's question, he further  added that all regulatory frameworks in 
Timor -Leste were continuously evolving to adapt to the requisites of the accessions to the ASEAN 
and the WTO an d to maintain a legal system conforming  to the international standards.  This included 
the re -evaluation of the existing laws due to  changed circumstances, scientific or technological 
developments, or other new information.  
75. The representative of Timor -Leste confirmed that international treaties and agreements 
ratified by the National Parliament, including the WTO Agreement, had precedence over domestic 
laws. If  laws and other measures of  Timor -Leste  were found to contradict international treaties or 
agreements, the provisions of the international treaty or agreement, such as the WTO  Agreement, 
would apply. All legislative or regulatory instruments necessary for the application of the WTO 
provisions would be adopted and enacted upon accession, with the exception of those in the areas where Timor -Leste  would be granted transition periods in accordance with its Protocol of Accession. 
The Wo rking Party took note of these commitments.  
76. In accordance with Article 123 of the Constitution, Timor -Leste judicial system was comprised 
of: (i) courts of general jurisdiction with the Supreme Court of Justice as the highest court of appeal ; 
(ii) tax and administrative courts  with the High Administrative, Tax and Audit Court as the highest 
court of appeal ; and , (iii) military courts.  In addition, m aritime and arbitration courts could  be 
created . However, the Constitution prohibited the creation of s pecial courts to judge certain 
categories of criminal offences. Courts were so vereign bodies, independent and subject only to 
the Constitution and the law  (Articles 118 and 119 of the Constitution) .  
77. The court system of Timor -Leste was st ill in transition from the pre -independence time. Thus, 
not all of the judicial institutions envisaged under the Constitution had been created . As of December  
2023, the court system continued to consist of four District Courts (in Dili, Ba ucau, Suai, and 
Oecussi) which addressed civil, criminal, as well as tax and administrative matters, as courts of first 
instance, and one  ad hoc temporary Court of Appeal in Dili which handled appeals  and accumulated 
competencies of the Supreme Court of Justice  and th e permanent Court of Appeal (both to be 
established) . Under Law No. 25/2021 of 2 December 2021 on "System of Courts",  as amended by 
Law No. 12/2022 of 21 December 2022,  the Supreme Court of Justice and the permanent Court of 
Appeal were to be established by 21 June 2025, as the highest judicial bod ies and guarantor s of the 
uniform application of the law, with jurisdiction throughout the territory of Timor -Leste , including on 
constitutional and electoral matters . The permanent Court of Appeal, when established, would 
succeed the current temporary Court. In addition, thirteen Courts of first in stance would be 
established in municipalities or a special administrative region, to handle civil, criminal and family 
matte rs. Four of these Courts would succeed the four existing District Courts. The remaining nine 
Courts of first instance would be established once the necessary human and financial conditions were in place. Until then, the established courts of first instance  could decide to extend their 
territorial jurisdiction to more than one municipality.  
78. Separately, the Audit Court had been established in 2011 by Law No.  9/2011 of 
17 August  2011 to supervise public finance and to ensure transparency in public accounts.  Under WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Law No.  25/2021, it would be succeeded by the High Administrative, Fiscal and Audit Court 
responsible for adjudicating disputes arising out of administrative and fiscal legal relations. Within 
it, the Audit Chamber would  be established. Under this  Court, administrative and fiscal courts of first 
instance would  be established. Until the n, their competencies were exercised by judicial courts.  
- Government  entities responsible for making and implementing policies affecting 
foreign trade  
79. As per the organigram of the VIIIth  Constitutional Government, approved by Decree- Law 
No. 14/2018 of 17 August 2018, as amended by Decree- Law No. 27/2019 of 19 June 2019, trade 
and other trade- related issues had fallen  under the responsibility of  the Ministry of Tourism, 
Commerce, and Industry (MTCI) and the Ministry of Agriculture and Fisheries which had both been 
under the coordination by the Coordinating Minister for Economic Affairs (MCAE). As per the 
organigram of the IX th Constitutional Governmen t, approved by Decree- Law No.  46/2023 of 
28 July 2023, these  issues fell under the responsibility of the Ministry of Tourism and Environment 
(MTA), Ministry of Commerce and Industry (MCI) and the Ministry of Agriculture, Livestock, Fisheries and Forestry (MALFF). All these Ministries remained coordinated by the Coordinating Minister for 
Economic Affairs (MCAE).  
80. The Coordinating Minister for Economic Affairs (MCAE) supported the Prime Minister in 
the supervision of the economic policy and was responsible for  coordinating the execution of public 
policies related to economic development. MCAE directly coordinated the following line ministries 
and bodies : (i) Ministry of Agriculture , Livestock, Fisheries and Forestry  (MALFF); (ii) Ministry of 
Tourism  and Environment (MTE) ; (iii) Ministry of Commerce and Industry (MCI); (iv) Ministry of 
Transport and Communications  (MTC) ; (v) Secretary of State for Vocational Training and 
Employment; (v i) Secretary of State for Cooperatives; and (v ii) Secretary of Stat e for the 
Environment.   
81. Trade policy matters were the responsibility of the Ministry of Commerce and Industry (MCI), 
which  was responsible for developing trade policies on an industry -wide basis, and policies related 
to commercial economic activities. It a lso had the competence to develop legal frameworks  affecting 
the supply of goods and services .  
82. The Ministry of Finance  (MF) had the responsibility  for drafting, executing, coordinating and 
assessing the policies for the  areas of annual budget and finance planning and monitoring. 
This include d general economic advice for the Government  and on the Government  tax policies. Laws 
affecting the levying of  customs duties were administered by the Customs  Authority , which was 
subordinated to the Ministry of Finan ce and had  the responsibility to oversee Government  policies 
related to the administration of both imports and exports.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  83. The Ministry of Agriculture , Livestock, Fisheries and Forestry (MALFF) had the responsibility 
for drafting, executing, coordinating and assessing the policies for the areas of agriculture, forestry, 
fisheries , livestock  and quarantine . This include d the responsibility for promoting a nd inspecting food 
production, including seeds, and to promote the development of the fisheries and livestock 
industr ies. The Ministry was  also responsible for phytosanitary measures.   
84. Laws governing private  investment s (both foreign and national)  were administered by 
the Investment and Export Promotion Agency (TradeInvest Timor -Leste) , an agency that  was under 
MCAE' s oversight . This agency , which was re -established through Decree- Law No.  45/2015 of 
30 December 2015, was responsible for promot ing, facilitating , monitor ing and advocat ing for 
private investments and exports  and serve d as a " one-stop-shop" service for private investments 
and exports in Timor -Leste.  
85. Laws pertaining to commercial registration  were implemented by the Commercial Registration 
and Verification Service  (SERVE), an agenc y that was  also under MCAE 's oversight . This agency was 
fully established under Decree- Law No. 7/2017, as a public institute with the mission to  execute and 
promote policies related to commercial registration and licensing procedures in order to facilitate the 
business environment . The SERVE also operated as a "one-stop-shop" service  facilitating the 
issuance of licenses by the incumbent line ministr ies and bodies.  
86. The representative of Timor -Leste also informed that his Government had  establish ed the 
National  Secretariat on the Accession to the WTO  which focus ed on WTO matters. The  respective 
Government Decree No. 3/2023 of 17 May 2023 defining th e structure and competence of the 
Secretariat had been shared with the Working Party .  
87. A Member also asked about an Inter -ministerial Commission for Coordination of the Value 
Chain and Stimulation of Local Production . In response, the representative of Timor -Leste explained 
that this Commission had been  established by Government Resolution No. 20/2022 of 18 May 2022. 
The Commission was an advisory entity and not an implementing agency . It did not conduct activities 
related to agricultural or industrial goods  and was  not involved in marketing or promotion services. 
The Commission made  recommendations to the Council of Ministers aiming to improve public 
policies, systems and administrate procedures and  to advise regardin g the legal framework related 
to the coordination of the value chain and to the stimulation of the growth of national production. The Commission wa s composed of the Prime Minister, the C oordinating Minister of Economic Affairs, 
the Minister of  Commerce  and Industry, the Minister of Agriculture , Livestock, Fisheries and Forestry , 
the Minister of Finance and the Minister of Public Works.  
- Division of authority between central and sub-central Government s 
88. Timor -Leste was a unitary state with one central Government  (Article 1 of the Constitution) . 
It was  divided into 12 Municipalities  and one Special Administrative R egion.  Municipalities had been  
created by Law No.  11/2009 of 7 October 2009,  as amended by Law No.  4/2016 o f 25 May 2016, 
although they were yet to become fully operational.  They were considered Autonomous 
Administration s of the local Government, even though they did not yet have local legislatures , and WT/ACC/SPEC/TLS/5/Rev.3  
 
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  were further divided into 67 Administrative Posts which could  be sub-divided into Sucos 
(i.e., villages ). The central Government operated  administratively in all  municipalities , according to  
Decree- Law No. 3/2016 of 16 March 2016. It also define d the competence and functioning of  
the local Governments (Article 72.2 of the Constitution). As local Governments, t he Municipal 
Authorities and Administrations implemented the decisions of the central Governmen t at the loc al 
level, with some degree of  autonomy  and overseen by the Ministry  of State Administration . While 
they were yet  to be fully established , gradually,  it was anticipated that they would be directly elected 
by the  respective constituencies and become real local powers not depending hierar chically on 
the central Government.  
89. In 2014, the National Parliament had created the Oe- Cusse Ambeno Special Administrative 
Region and established the Oe- Cusse Ambeno and Ata uro Special Social Market Economy Zone 
aimed at  creating the conditions to increase both foreign and local investment in those regions. 
The Administra tive Region 's executive bodies had been granted the regulatory, administrative, 
economic and financial powers, including concession of public services, supervision of certain sectors 
and expropriation in the public interes t, to pursue their objectives  (Law No. 3/2014 of 18 June 2014, 
as amended by Law No. 3/2019 of 15 August 2019) . 
- Description of judicial, arbitral or administrative tribunal or procedure s 
90. Since 2008,  Timor -Leste had in place administrative procedures that could  be used within the 
Administration before referring a dispute to a court (Decree- Law No. 32/2008 of 27 August  2008). 
Natural and legal persons were entitled to present a claim both before the public entity directly 
involved in the case and before the supervising authority. Administrative procedures regarding 
customs decisions were regulated by A rticles 67 to 77 of the  Customs Code  (Decree- Law 
No. 14/2017 of 5 April  2017) . In response to a Member's  question, he added that appeals of 
administrative actions to higher administrative authorities were regulated by Decree- Law 
No. 32/2008 of 27 August 2008 on "Administrative P rocedure". The Decree- Law consecrated the 
right of individuals or enterprises affected by an administrative action (including th at subject to the 
WTO provisions) to appeal such an action (Article 68). Appeals were to be lodged with the higher 
administrativ e authorities that produced the action (Article 75) or to the higher administrative 
authorities with competencies over the entity that produced the action (Article 84). The Decree- Law 
also consecrated the principle of access to court  to appeal  actions by p ublic entities (Article  9). 
91. There were no judicial, arbitral or administrative courts or procedures to specifically deal with 
trade matters. Therefore, conflicts arising  with respect to such matters  were settled by the judicial 
courts. Access to courts was a fundamental right consecrated in Article 26 of the Constitution, which 
established that access to courts was guaranteed to all for the defence of their legally protected rights  and interests. Justice could  not be denied for insufficient eco nomic means and thus there was  
a specific public body which ensured  legal assistance to those lacking financial resources. Also, Article 
12 of Law No. 15/2017 of 23 August 2017 "Private Investment Law" indicate d access to the courts 
as a primary right of t he investors. The procedures to be followed for Civil and Administrative WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Procedures in front of the c ourts were contained in Decree- Law No. 1/2006 of 21 February  2006 
"Civil Procedure Code".  
92. Arbitration Law  No. 6/2021 of 29 March 2021 had been designed based on the 2006 model of 
the International Arbitration Law recommended by the  UN Commission on International Trade Law 
(UNCITRAL). This Law had created alternative means of resolving trade  disputes and was set to 
increase legal certainty and speed in resolving conflicts. It  provided a comprehensive set of 
procedural rules upon which parties could  agree for the conduct of arbitral proceedings arising out 
of their commercial disputes. He added that Timor -Leste was also a member State of the 
International Centre for Settlement of Investment Disputes (ICSID) and party  to the Convention on 
the Settlement of Investment Disputes between States and Nationals of Other States (ICSID 
Convention)  as provided for in the Na tional Parliament' s Resolution No. 14/2016 of 31 August 2016.  
93. The representative of Timor -Leste  confirmed that the current constitution, laws and 
regulations provided the necessary institutional base for the prompt administrative and judicial review of th e administrative actions. The representative of Timor -Leste  further confirmed that, from 
the date of accession, Timor -Leste 's laws and regulations would provide individuals or enterprises 
affected by any administrative action subject to WTO provisions, the  right to appeal such action, 
without penalty, both to a higher administrative authority and to the courts or other independent tribunal in conformity with WTO obligations, including those set out in Article  X of the 
WTO General  Agreement on Tariffs and Trade 1994, Article 23 of the WTO Agreement on Subsidies 
and Countervailing Measures, Article 11 of the WTO Agreement on Implementation of Article  VII of 
the GATT 1994, Article 62 of the WTO Agreement on Trade- Related Aspects of Intellectual Property 
Rights and Article VI of the WTO General Agreement on Trade in Services. Recourse to administrative 
and judicial review would also include actions relating to the implementation of national treatment, 
conformity assessment, the regulation, control, supply or pr omotion of a service, including the grant 
or denial of a licence to provide a service and other matters. The tribunals or administrative 
authorities responsible  for such reviews would be impartial and independent of the agency entrusted 
with administrative  enforcement and would not have any substantial interest in the outcome of the 
matter. The review procedure would include the opportunity for appeal, without penalty, by individuals or enterprises affected by any administrative action subject to review. Notice of the 
decision on appeal would be given to the appellant and the reasons for such a decision would be 
provided in writing. The Working Party took note of these commitments.  
IV. POLICIES AFFECTING  TRADE IN GOODS  
- Trading rights, registration  require ments for engaging in importing and exporting  
94. The representative of Timor -Leste  informed that Timor -Leste  did not have any specific 
regulations requiring persons to register in order to engage in import/export activities. However, 
natural and legal persons  importing/exporting on a commercial basis had been  required to obtain a  
licence  issued by the competent authority, through the  Commercial Registration and Verification 
Service  (SERVE), in accordance with Decree -Law No. 34/2017 of 27 September 2017 on "Licensing 
of Economic Activities" . This legal framework , which  had applied to natural and legal persons, WT/ACC/SPEC/TLS/5/Rev.3  
 
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  domestic o r foreign, and aimed at licensing of various commercial activiti es, including  wholesale, 
retail, cumulative commerce, general commerce, imports, exports, services and other commercial 
activities not regulated by specific legislation , had been abolished with the adoption of Decree -Law 
No. 83/2022 of 23 November 2022.  This Decree -Law had been adopted with the aim to simplify the  
activity  licensing procedure, to make it less burdensome and bureaucratic.  
95. The representative of Timor -Leste explained that, before the adoption of Decree- Law 
No. 83/2022 of 23 November 2022, Annexes I to III of Decree- Law No. 34/2017 had set out the 
types of business activities based on the  lower, medium and higher risk criteria , as reflected in 
Annexes 8(A)  to 8(C) . Classification of activities had followed international standards adopted by the 
United Nations Statistics Division (International Standard for I ndustrial Classification ). Importation 
of goods classified under the lower risk had been subject to automatic activity licensing . For 
importation of goods classified under the  medium or higher risks, importers had been required to 
obtain non-automatic activity licen ces based on the business activit y. With the adoption of 
Decree- Law No. 83/2022 this categorization had been eliminated.  The new legal framework 
introduced by Decree- Law No.  83/2022 had simplified the licensing procedures and narrowed the 
scope of activities that required licensing. The nee d for licensing for specific economic activities now 
depended on the existence of a specific sectoral legal framework  (e.g., for mining, infrastructure, 
aviation, tourism and recreational facilities, telecommunications, etc.) . The list of  economic activities 
that required licensing based on the existence of such sectoral framework, which no longer included 
commercial importation or exportation,  was reproduced in Annex 8(D) . 
96. Regarding the activity licensing procedure, he added that SERVE acted as a single window by 
receiving applications for activity licences . Once applications were received, SERVE sent the 
documents to the relevant Ministries and Agencies to obtain a  licence subject to the sectoral 
requirements.  Depending on the specific requirements by the line Ministries and specific steps that 
had to be implemented in the authorization process, this procedure could take up to one month.  
Once licences were issued , the licensed activities  could be started immediately.  
97. He added that licensing requirements continued to apply with respect to specific  types of  
imports . Thus, Decree -Law No.  12/2004 of 26 May 2004 on "Pharmaceutical Activities" subjected 
imports of pharmaceutical products to health regulations, under the authority of the  Ministry of 
Health. Article 3 of this Decree -Law determined that ac tivities of import (as well as storage, sales in 
bulk, sales in retail, and export of medicines for human use) could only be exercised by entities duly registered in accordance with the applicable law for registration of businesses and duly licen ced by 
the Regulating Commission of Pharmaceutical Activities pursuant to this Decree -Law, after 
consultation with the Board of Management pursuant to sub -paragraph (d), item 1, of Article  22 of 
the Organic Statute of the Ministry of Health. Such requirements were elaborated in sub -section 
"Import licensing procedures ".  
98. He also informed that a t the time of importation /exportation , the Customs Authority  require d 
all commercial importers /exporters  to demonstrate that they ha d a Timor -Leste Taxpayer 
Identification Number (TIN) . In addition, c ompanies had to  prove they were validly  incorporated. WT/ACC/SPEC/TLS/5/Rev.3  
 
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  This requirement applied  to all individuals or companies that engage d in import/export activities on 
a commercial basis.  
99. In addition to activity licensing, business registration requirements also applied, in line with 
Decree- Law No. 16/2017 of 17 May 2017 on "Commercial Registration" . Individual and Agency 
Entrepreneurs could apply for company registration at SERVE. There was no cost for  businesses or 
sole traders and companies' registration. In line with Decree -Law No.  16/2017, t he following 
documents had to  be submitted: ( i) Act of Association (AoA); (ii)  shareholders' IDs and, if married, 
proof of their marriage certificate and/or matrimonial property regime; ( iii) shareholders' taxpayer 
number (if any, otherwise it could  be attributed by SERVE at the  time of registration); 
(iv) identification of the corporate bodies; ( v) letters of acceptance for each member of the corporate  
bodies; ( vi) documents certifying that the company's capital ha d been deposited if it wa s mentioned 
in the AoA; ( vii) map depicting the location of registered offices; and ( viii) certified copies of prior 
authorizations to conduct business, if applicable.  The business registration  was conducted  by SERVE 
in one to five business  days.  At the end of the process, the registration documents c ould be collected 
at SERVE: registration certificate, which indicates the  business or sole trader's and company's 
registr ation number, the tax identification number (TIN), the incorporation certificate and the 
business authorizations/licences.  
100.  The representative of Timor -Leste confirmed that from the date of accession, Timor -Leste 
would grant any natural or legal person, regardless of physical presence or investment in 
Timor -Leste, the right to be the importer of record of any product allowed to be imported into 
Timor -Leste, at any level of distribution, and that its laws and regulations relating to the right to 
trade in goods and all fees, charges or taxes levied on such rights would conform fully with its WTO 
obligations, including Articles VIII:1(a), XI:1, and III:2 and 4 of the WTO General Agreement on 
Tariffs and Trade 1994, Article III of the WTO General Agreement on Trade in Services, and Article 
63 of the WTO Agreement on Trade- Related Aspects of Intellectual Property Rights. He also 
confirmed that full rights to import and to export would be granted in a non -discriminatory and non -
discretionary manner from t he date of accession, and any requirements for commercial registration 
or application for trading rights would be for customs and fiscal purposes only, would not require investment in Timor -Leste nor confer the right to distribute there, and would not cons titute a barrier 
to trade. The  Working Party took note of these commitments.  
- Trade facilitation  
101.  For Timor -Leste, trade facilitation was the tool for a ccessing  outside markets which wa s 
essential to propel growth . It was hence engaged on promoting trade f acilitation policies aimed at 
making international trade easier and more efficient. It had  embarked on trade facilitation policies 
in 2016, with the establishment of the National Trade Facilitation Committee (Government 
Resolution No. 6/2016 of 17 February 2016), as a forum for consultative dialogue between 
the Government, the private sector and other stakeholders, such as development partners, to 
provide recommendation for reforms, with the ultimate goal to c oordinate efforts and improve trade 
facilitation.  Among the  Committee 's responsibilities were: (i) to promote the analysis of procedures WT/ACC/SPEC/TLS/5/Rev.3  
 
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  for import and export and to suggest the adoption of  harmoniz ed and simplified measures;  
(ii) to coordinate public consultations and put together recommendations aimed at facilitating import 
or export; (iii) to support the Government in the implementation of legislative and procedural 
reforms to facilitate import and export;  and, (iv) to coordinate the work undertaken by a ll 
Government entities relate d to facilitation of import and  export. The list of members of 
the Committee , as amended by Government Resolution No. 24/2023 of 24 May 2023,  is contained 
in Annex 9.  
102.  The Government of Timor -Leste intended  to modernize the country's customs framework  in 
order to improve import/export process es in Timor -Leste , in the context of the ongoing efforts to 
modernize t he economy and meet the WTO and ASEAN standards. With the assistance of 
the International Finance Corporation (IFC), the C ustoms  Authority  was working on a customs 
reform. The major goals of this reform were to reduce bureaucracy, increase transparency, and 
streamline the processes for import and export procedures.  In order to achieve these goals, 
the Government was implementing three main steps: (i) review of the customs legislative 
framework; (ii) integration of the quarantine and customs services systems (including their 
computer systems); and, (iii) public discussion in order to allow stakeholder engagement during 
the implementation phase (Ministries, customs brokers, major importers, etc.).  
103.  The customs reform process had started with th e approval of the  2017 Customs Code 
(Decree -Law No. 14/2017 of 5 April 2017). The Code reflect ed the political will of the Government 
of Timor -Leste in support of trade facilitation and was based on the Kyoto Convention of the World 
Customs Organization (W CO). The Government therefore expected the Code to be in compliance 
with the WTO Trade Facilitation Agreement (TFA).  It define d customs procedures, adopt ed customs 
risk management and promote d integrity and transparency as agreed upon by the 
Arusha  Declaration. It cover ed, namely: (i) customs control and supervision; (ii) areas subject to 
customs control; (iii) customs powers; (iv) customs duties; and (v) customs offenses.  The Code 
required the recruitment and training of professionals to implement it.  The Code had replaced the 
following laws: (i) previous Customs Code (Decree -Law No. 11/2004 of 19 May 2004); (ii) Decree-
Law No. 9/2004 of 19 May 2004 on "General Rules on the Import, Storage and Movement of Goods 
Subject to Selective Excise Tax"; (iii) De cree-Law No. 10/2004 of 19 May 2004 on "Tax and Customs 
Offences"; (iv) Decree -Law No. 15/2005 on "Statute of Licen ced Customs Brokers"; and (v) Decree -
Law No.  5/2007 of 13 August 2007 on "Regime of Customs and Customs Fund Emoluments".  The 
Code guided all  subsidiary customs legislation that needed to be produced (see Annex 10). The 
custo ms reform w ould continue until end -2025.  
104.  To further detail the reform , Timor -Leste was developing a National Single Window, to be  
ultimately positioned as the link between an eventual single window of the Community of Portuguese Language  Countries (CPLP) and the ASEAN single window, becoming a hub and platform that linked 
a market of over 2.4 billion people.  To this end , the Customs Code contain ed: WT/ACC/SPEC/TLS/5/Rev.3  
 
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  • Title V, Chapter I, dealing with Electronic Records and Payments based on United  Nations 
Commission on International Trade Law (UNCITRAL) model laws ;  
• Article 79 that allowed the Commissioner  of the Customs Authority to request  specific 
documents or payments be transmitted in electronic form;  
• Article s 79 and 80 that allowed the National Director to authorize certain persons to lodge 
documents in electronic form or to make payments electronically . It provide d the National 
Director the flexibility to modify the authorization in order to adapt to changes in technology;  
• Article  82 allow ed for electronic signatures, accompanied by a definition of an  electronic 
signature, which wa s based on the definition in UNCITRAL model laws;  
• Article 83 that provided  for the legal effect and enforceability of electronic documents and 
electronic signatures;  
• Article 84 that provide d for the legal effect of decisions made by the Customs  Authority  
through an automated system;  
• Article 85 that prohibited  unauthorized access to the Customs computer systems;  
• Article 86 that allowed for the Commissio ner to prescribe technical requirements relating to 
electronic records, electronic signatures, and related control processes and procedures.   
The Government had adopted the Automated System Customs Data Administration software  as 
the technological platform  for all customs procedures and documentation  (ASYCUDA- World , as 
determined by Government Resolution No. 24/2017 of 17 May 2017, same as ASEAN). C ustoms 
procedures were moving from being lodged on paper forms to online systems . The implementation 
of the National Single Window project had started in January 2020.  Full implementation wa s 
projected for end- 2024.  The timeline for the implementation of the project is contained in Annex 11. 
105.  The Office of the Commissioner  of the Customs  Authority  was working on improving the 
computer facilities and Internet connections at all ports and the airport in order to allow for staff at 
those ports  to be able to make entries directly into the ASYCUDA system. Thus  far, this include d 
work at the following posts: (i) Dili Sea Port, Dili Airport, Baucau Sea Port, Salele –  Suai Sea Port, 
Oe-Cusse Sea Port; and (ii) Land customs posts: Suai -Salele, Oe -Cusse, Maliana.  
106.  Under t he customs reform, t hrough the "Integrated Customs and Quarantine Services" 
system, in addition to the Database of Importers  which already existed in Timor -Leste, the Customs  
Authority  and the IFC also aimed to create an  integrated system  that reduced the bureaucratic 
burden and increased the exchange of information between the Customs A uthorit y, Quarantine 
Services and other relevant Government services , to enable the  importer/exporter to interact with 
a single administrative authority th roughout the entire import/export process.  It was expected that, 
once ASYCUDA- World was implemented, all information regarding goods that require d licences 
would be stored in the respective database.  
107.  The Office of the Commissioner of the Customs Authority , with the assistance of the IFC, was 
seeking to improve the system for giving advance clearance of cargo. As part of this project, the  IFC 
was also attempting to improve the capacity of the Office of Quarantine to operate a system for 
advance clearance of cargo. This project include d efforts to establish internal procedures for WT/ACC/SPEC/TLS/5/Rev.3  
 
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  monitoring instances in which there wa s some interruption to clearance subsequent to advance 
clearance having been granted.  
108.  In response to a Member's  question on  the Government's intention to use Time Release 
Studies (TRS) to identify bottlenecks in import and export procedures , the representative of 
Timor -Leste agreed that the WCO Time Release Study wa s an internationall y-recognized tool to 
measure the actual tim e required for the release and/or clearance of goods, with a view to finding 
bottlenecks in the trade flow process and taking necessary measures to improve the effectiveness 
and efficiency of border procedures. The Government of Timor -Leste, through the Customs 
Authority, w ould publicize the information and publish the corresponding policy and operational 
measures to further improve trade facilitation at the border.  
109.  In response to a question about Timor -Leste's  intention  to implement the TFA and  to 
categori se its future commitments under the A, B and C categories , the representative of Timor -Leste 
confirmed that his Government had committed to adhere to the TFA by implementing the ASYCUDA 
World System since April 2017 to expedite the movement, release and clearance of goods.  
Nevertheless, recognizing Timor -Leste 's status as an LDC , full compliance with the TFA w ould require 
strengthening the necessary legal/policy provisions, procedures, infrastructure and human capital.  
Timor -Leste's proposed categorization of its TFA commitments is provided in A nnex 12. 
110.  The representative of Timor -Leste  took note of the Protocol Amending the Marrakesh 
Agreement Establishing the World Trade Organization done at Geneva on 27 November 2014 (WT/L/940
) (TFA Protocol) . This Protocol,  which had entered into force on 22 February 2017, had 
inserted the WTO Agreement on Trade Facilitation into Annex 1A of the WTO Agreement. 
The representative of Timor -Leste confirmed that  his Government would accept the TFA Protocol by 
virtue of accepting the Protocol of Accession. He further confirmed that Timor -Leste  would apply the 
WTO Agreement on Trade Facilitation from the date of accession, using the categories of commitments as proposed in 
Annex 12, as a least -developed country . The Working Party took note 
of these commitments.  
A. IMPORT  REGULATIONS 
- Ordinary customs duties 
111.  The representative of T imor-Leste  informed that  previously , according to Decree- Law 
No. 8/2008 of 30 June 2008 " Taxes and Duties Act ", his Government  had provided for a flat import 
duty rate of 2.5% ad  valorem  on all imported goods, regardless of the ir classification. In accordance 
with Article 3 of Law No. 15/2022 of 21 December 2022 on "State Budget for 2023", from 1 January  2023, the flat import rate ha d been increased to 5% ad valorem  on all imported goods , 
with the objective to increase budget revenue.  
112.  In accordance with the Customs Code of Timor -Leste  (Decree -Law No . 14/2017 of 
5 April 2017) , the Customs Tariff of Timor -Leste comprise d the Nomenclature of Goods in 
accordance with the International Convention on the Harmonized Commodity Description and Coding WT/ACC/SPEC/TLS/5/Rev.3  
 
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  System (HS)  of the World Customs Organization  (WCO) . As such, since a flat import duty rate of 
5% was applied, there were no other taxes, fees and charges set in relation to each tariff line. 
Currently, Timor -Leste 's Customs Authority used the Tariff Nomenclature in HS 20 17. The 
Government  had ratified the H S Convention and was aligning the national tariff nomenclature with 
the ASEAN Harmonized Tariff Nomenclature (AHTN) which was based on HS 2022. It planned to start 
implementing the Tariff Nomenclature in HS 2022 before the end of 2023.  
113.  He added that his Government planned to increase the applied duties for agricultural and 
non-agricultural products in the medium term. The  implementation of this plan w ould be subject to 
the revision of the Taxes and Duties Act, as per the Action Plan provided in Annex 15, and would be 
in compliance with the tariff concessions and commitments negotiated with Members.  
114.  In response to a request from a Member, the representative of Timor -Leste confirmed that 
Timor -Leste had submit ted its draft Information  Technology Agreement (ITA) and ITA Expansion 
schedules to the WTO ITA Committee and the 2015 ITA Expansion Group for verification and 
approval, in accordance with the ITA and the IT A Expansion procedures, in order to enable Timor -
Leste to join the ITA and the ITA Expansion when it became a WTO Member. The Working Party took note of these commitments.  
115.  The ITA and ITA Expansion Schedule s of Timor -Leste  had been approved by the WTO ITA 
Committee and the 2015 ITA Expansion Group on 19 October  2023. The Schedule s had been 
incorporated in the Schedule of Concessions and Commitments on Goods of Timor -Leste  (CLXXVIII).  
- Other duties and c harges 
116.  The representative of Timor -Leste informed that Timor -Leste did  not apply any other duties 
and charges within the meaning of Article II:1(b) of the WTO General Agreement on Tariffs and Trade  1994.  He confirmed that Timor -Leste would  bind at zero other duties and charges in its 
Schedule of Concessio ns and Commitments. The Working Party took note of this commitment.  
- Tariff quotas, tariff exemptions  
117.  The representative of Timor -Leste informed that Timor -Leste did  not apply any tariff quotas 
and d id not intend to apply any quantitative limits on the volumes of imports . 
118.  The Taxes and Duties Act provide d for a list of goods that were exempted from import duty. 
This list include d exemptions for goods: (i) of a non -commercial nature below a threshold value 
imported by travellers ; (ii) imported under diplomatic and United Nations (UN) exemptions; 
(iii) imported by charitable organizations; (iv) temporary imports; and (v) a few others, as detailed 
in Annex 13.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  119.  Further, according to  Article 3 of Law No. 15/2022 of 21 December 2022 on "State Budget for 
2023", from 1 January 2023, (i) the imports  by the State or other public legal persons, of arms and 
ammunition for the National Police of Timor -Leste (PNTL), t he Scientific Police for Criminal 
Investigation (PCIC) and the FALINTIL -  Defense Forces of Timor -Leste ; and (ii) t he imports  of goods 
that were donated, or used in the production or construction of goods that were donated, to the 
State by foreign States, by public collective persons of foreign States or by international 
organizations , were also exempt from import duty . 
120.  Additionally, the Customs  Code also provide d for relief from import duties for goods not of a 
commercial character, and falling within one of the 11  following  categories :  
• Goods that constitute d personal items and household effects imported by individuals 
transferring their reside nce, on a definitive basis, to the customs territory of Timor -Leste, 
provided that such goods ha d been in the custody of such individuals and that, where they 
were durable goods, ha d been utilised by the same individuals in their previous habitual 
residenc e for at least six months before the date on which they abandoned such residence in 
the third country of departure and that such goods we re intended for use for the same 
purposes in their new habitual residence;  
• Movable goods, layettes and gifts imported on the occasion of a wedding, provided that they 
belong ed to one or to the two members of the couple that, as a consequence of the wedding, 
transfer red their habitual residence to Timor -Leste;  
• Personal goods acquired by succession;  
• Shipments sent from private individuals to private individuals, of insignificant value, which 
were sent directly from a foreign country to an addressee in Timor -Leste;  
• Goods contained in the personal luggage of travellers, provided that they  were occasion al 
importations and were devoid of commercial character, the limits of which were laid down in 
Decree- Law No . 10/2003 of 22 July  2003;   
• Instruments, objects, scientific apparatuses and other instruments of educational, cultural or 
pedagogical character intended for public establishments or bodies, or public utilities, as long 
as these entities we re legally recognised as such , and the impor tations were authorised by 
the Minister of Planning and Finance or his or her representative;  
• Gifts received in the framework of international relations, provided that such gifts ha d been 
imported by people who ha d made an official visit to a foreign coun try or by people who visited  
Timor -Leste and br ought  gifts for the authorities hosting them, or that such gifts we re sent as 
a sign of friendship to a public authority, to a community, to a body, or to groups undertaking activities of public interest ;  
• Goods constituting gifts offered to Heads of State or to people enjoying similar prerogatives 
in the international arena, or goods intended for use or for consumption during the official 
stay of foreign Heads of State, within the limits and conditions to be e stablished by 
the Customs Authority ; 
• Machines and apparatuses imported solely for exhibitions and fairs, as well as materials intended to assembly or decorate provisional pavilions in fairs or exhibitions;  
• Prospects, brochures, books, magazines, guides, m aps or photographs intended to promote 
tourism; or 
• Publications from foreign Government s and international organisations intended for free 
distribution as well as documents sent free of charge to public services .  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  121.  In response to a Member's question in rela tion to category (iv) that refer red to shipments of 
insignificant value, he clarified that Article 278(2) of the Customs Code refer red to goods without 
commercial value , i.e., whose value d id not exceed the statistical threshold, as defined in the Tax 
Law. The Government, through the VAT Commission, was revising  the VAT Law with a possibility to 
set the threshold value of US$ 500 . This draft law was in the pipeline for the Government 's approva l 
in line with the Action Plan in A nnex 15. 
122.  The representative of Timor -Leste confirmed that any tariff rate quotas, if introduced in the 
future, would be applied and administered in conformity with WTO rules , including MFN and national 
treatment provisions. He also confirmed that upon accession to the WTO, any tariff exemptions 
would only be implemented in conformity with the relevant WTO provisions including Article I of the 
WTO General Agreement on Tariffs and Trade 1994 and the WTO Agreement on Trade- Related 
Investment Measures. The Working Party took note of these commitments . 
- Fees and charges for services rendered  
123.  The Customs  Authority  collect ed fees and charges for services rendered in accordance with 
the Customs Code , which establishe d the regime of customs and customs fund emoluments, as 
provided in A nnex 14.  
124.  In addition, Artic le 66 of Decree- Law No. 21/2003 of 31 December 2003 "On Quarantine and 
Sanitary Controls on Goods Imported and Exported"  had authorize d the Ministry of Agriculture and 
Fisheries and the Minist ry of Finance to issue a joint Ministerial Order defining the service fees for  
granting import licen ces, issuance of certificates or any other fees for services.  Decree- Law 
No. 36/2023 of 31 May 2023 on "Plant Health and Quarantine" and Decree- Law No. 41/2023 of 
31 May 2023 on "Animal Health and Quarantine", which had repealed Decree- Law No. 21/2003 of 
31 December 2003, also contained a provision on the  possibility of  introduction of such fees by a 
Ministerial Order. To date, no action had been taken on introducing such fees.  Responding to a 
Member's question , the representative of Timor -Leste added that  his Government had no plan to 
introduce such fees. Should the Government introduce them  in future, it would make sure that such 
fees were consistent with the provisions of the WTO Agreement , in par ticular Articles VIII and X of 
the GATT 1994.  
125.  The representative of Timor -Leste  confirmed that, from the date of accession, all fees and 
charges for services rendered, applied on or in connection with importation or exportation, would 
conform with the prov isions of the WTO Agreement, in particular Articles VIII and X of the WTO 
General Agreement on Tariffs and Trade 1994. The Working Party took note of this commitment.  
- Quantitative import restrictions , including prohibitions, quotas and licensing  
systems  
126.  The representative of  Timor -Leste informed that,  as elaborated in section "Sanitary and 
phytosanitary measures",  for public health reasons, the importation of the following products was 
prohibited: (i) any proteins for animal feeding containing mea t powder, bone powder, blood powder, WT/ACC/SPEC/TLS/5/Rev.3  
 
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  or fat from mammal tissues; (ii) poultry powder for ruminant feeding; (iii) any products from cows, 
sheep, or goats showing clinical signs of spongiform encephalopathy; (iv) any animals or any 
products of any animals showing clinical symptoms of certain diseases including, for example, foot-and -mouth disease and bird flu; and (v) non -transformed fat.  Importations of: (i) items listed 
in the Convention on International Trade in Endangered Species of Wild Fauna and Flora ( CITES, 
Article 72);  (ii) items originating from a country or areas where there was an ongoing occurrence of 
quarantine -related plagues or diseases (Article 72); and (i ii) exotic seeds included in a list to be 
approved by a Ministerial Order (Article 82)  were also  prohibited. There were no other quantitative 
import restrictions, including prohibitions and quotas.  
127.  In response to a Member's question, the representative of Timor -Leste confirmed that there 
were no quantitative restrictions on the import of alcohol ic beverages, including spirits, wine and 
beer. At the same time, the Annual Budget Law for 2023 specified excise taxes on alcoholic 
beverages, as described in  the section on "Application of Internal Taxe s to Imports".  
- Import licensing procedures  
128.  The re presentative of Timor-Leste  informed that his Government d id not operate a ny general 
system requiring licen ces in order to import goods. Legal and natural persons importing goods on 
a commercial basis had been  required to obtain a  business authorization  (activity licence) under 
Decree- Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities" . This 
requirement had been abolished with the adoption of Decree- Law No.  83/2022 of 
23 November  2022,  as described in the section on "Trading rights, registration requirements for 
engaging in importing and exporting" . He added that the information on the import licensing regime 
was detailed in document  WT/ACC/TLS/ 10
.  
129.  A Member asked the representative of Timor -Leste to provide  information on the roles of the 
ministries and agencies involved in the licensing process, as well as  the procedures for how 
Timor -Leste handled import and export- related emergencies (i.e., a denial of imported goods into 
the country). The representative of Timor -Leste said that i n any situation of import and export-
related issues, including emergencies, there were several Ministries with authority to deny imports 
of goods into the country, or exports  from the country, whose le gal procedures we re detailed in 
relevant  Decree- Laws according to the  structure most recently established by Decree- Law 
No. 46/2023 of 28 July 2023 on "Organic Law of the IXth  Constitutional Government of Timor -Leste" . 
These were: (i) Ministry of Agriculture , Livestock, Fisheries and Forestry  (animal and plant products), 
(ii) Ministry of Health (pharmaceutical products), (iii) Ministry of Defence (explosive products for 
civil construction, oil and mineral activities), (iv) State Secretary for Environment (r efrigerators), 
and (v) Ministry of Transport and Communications (motor vehicles) .  
130.  He added that the Customs Authority operate d under the Ministry of Finance and wa s 
regulated by Decree- Law No. 2/2020 of 8 January 2020 on "Organic Law of the Customs Authority 
(CA)" . Article 3 of the Decree-Law  determined that the Customs Authority  had the general mission 
of exercising control over the entire national customs territory for tax, economic and social protection WT/ACC/SPEC/TLS/5/Rev.3  
 
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  purposes, namel y in the field of public safety, environment, culture and health, as well as 
administering tax collection and customs and other fees that are legally committed.  The Customs 
Authority enforced the Customs Code which establishe d the general rules and procedu res for the 
import and export of goods  (including denial of imported goods in the country), their movement and 
use in the customs territory, the control of passengers and the Customs' administrative and 
enforcement powers. (Article 1.1 of the Code).  Custom s powers we re detailed in Title III of the Code . 
131.  As described in the section on "Sanitary and phytosanitary measures", by force of Article s 33 
and 35  of Decree- Law No. 36/2023 of 31 May 2023 on "Plant Health and Quarantine" and Decree-
Law No.  41/2023 of 31 May 2023 on "Animal Health and Quarantine", respectively , the imports of 
plant and animal products we re subject to quarantine regulations. The Directorate  General  of 
Quarantine and Biosecurity  under the Ministry of Agriculture , Livestock, Fisheries and Forestry deal t 
with the issues related to the monitoring of the implementation and compliance with laws and regulations , applicable to phyto - and zoo -sanitary control and quarantine , including issuance of 
import permits . The following items were  subject to import permits : (i) live animals; (ii) live plants; 
(iii) animal or vegetal products as specified by law; (iv) any other good, or merchandise, animal or 
vegetal organism as specified by law.
 
132.  Imports (as well as manufacture, export, trade, transport and use) of arms and e xplosives  
were subject to licence and prior inspections which we re carried out with support from the National 
Police of Timor -Leste (PNTL), according to Article 20(c) of Decree -Law No. 9/2009 of 
18 February  2009 and Decree-L aw No. 7/2020 of 19 February 2020 on " Import, Transport, Storage, 
and Use of Explosive Products for Civil Construction, Petroleum and Mineral Activities ". The PNTL 
operated under the Ministry of the Interior.  
133.  The representative of Timor -Leste confirmed th at, from the date of accession, Timor -Leste 
would not introduce, reintroduce or apply quantitative restrictions on imports or other non -tariff 
measures such as quotas, bans, permits, prior authorization requirements, licensing requirements 
or other require ments or restrictions having equivalent effect that could not be justified under the 
provisions of the WTO Agreement. The import licensing regime would be fully in accordance with all 
relevant provisions of the WTO Agreement, including the WTO Agreement on  Import Licensing 
Procedures. He further confirmed that the legal authority of his Government to suspend imports or 
to apply licensing requirements that could be used to suspend, ban or otherwise restrict the quantity 
of trade would be applied in conformity with the provisions of WTO Agreement, including the  WTO 
General Agreement on Tariffs and Trade 1994, the WTO Agreement on Import Licensing Procedures , 
the WTO Agreement on Safeguards, and the Understanding on Balance- of-Payments Provisions of 
the GATT 1994. The Working Party took note of these commitments.  
- Customs valuation  
134.  The representative of Timor -Leste informed that the  Customs Code (Decree -Law No.  14/2017 
of 5 April 2017)  provided for customs valuation in Title VII, Chapter IV  on the "Value  of Goods for 
Customs Purposes" , comprising Articles 97 to 101 and Schedule I, which closely followed the rules WT/ACC/SPEC/TLS/5/Rev.3  
 
- 40 - 
 
  in the WTO Agreement on Customs Valuation, including its interpretative notes . The requirement  of 
the Customs Code was  to use transaction value where ver possible , while making allowance for 
situations in which the invoiced price appear ed to be inauthentic. Where the value of an imported 
good as indicated in the invoice wa s lower than the fair market value of the same good , the Customs 
Authority could  calculate the fair market value of the transaction by referring to the value of similar 
transactions among parties operating on a commercial basis (Article 97.1). Articles  92.2 and 92.3 
provide d for adjustments to the transact ion value in line with Article 8 of the WTO Agreement on 
Implementation of Article VII of the GATT 1994 (WTO Agreement on Customs Valuation).  
The Government of Timor -Leste was taking steps so that its customs valuation law and practice 
operated in a manner  fully consistent with the WTO Agreement on Customs Valuation. The  Customs  
Authority  had also impleme nted an advance ruling system through which traders c ould request a 
ruling with regard to the application of customs valuation criteria for a  particular case in accordance 
with the provisions of the WTO Agreement on Customs Valuation. Detailed  information on the 
implementation and administration of the WTO Agreement on Customs Valuation i s contained in 
document WT/ACC/TLS/8 .  
135.  A Member asked the representative of Timor -Leste to clarify the meaning of "fair market 
value" and "value of similar transactions among parties operating on a commercial basis" . With 
respect to situations in which the invoiced price appear ed to be inauthentic and the C ustoms 
Authority could  calculate the f air market value of the transaction by referring to the value of similar 
transactions among parties operating on a commercial basis, a Member enquired if this c ould be the 
cause to deny the  transaction value method or not.  The representative of Timor -Leste  clarified that  
Article 97 provided that the customs value of the goods was the transaction value, i.e. the price 
actually paid or payable for the goods when they were sold for export to the country of importation . 
When the Customs Authority had reason to doubt the truth or accuracy of the declared customs 
value and, after having attempted to obtain further explanation or evidence that the declared customs value represented the total amount paid or payable for the imported goods, Clause 2(5), Schedule I required the C ustoms Authority to determine the customs value of the goods through 
the sequential use of the following methods of valuation: (i) transaction value of identical goods 
(Clause 4); (ii) transaction value of similar goods (Clause 5); (iii) deductive value (Clause 6); (iv) computed value (Clause 7); (v) residual research basis (fallback, Clause 8). Pursuant to Clause 
2(6) of Schedule I, at the written request of the importer addressed to the C ustoms Authority , 
the order of application of Clause 6 (d eductive value) and Clause 7 (computed value) may be 
reversed. He added that his Government welcome d indications for improvement of the Customs 
Code, to ensure  full compliance with the WTO Customs Valuation Agreement.  
136.  A Member further asked if the Government of Timor -Leste intend ed to adopt additional 
legislation concerning the valuation of lost or damaged goods . The representative of Timor -Leste 
confirmed that Schedule I of the Customs Code d id not define any special provisions or practical 
arrangements on the valuation of lost or damaged goods. However, there were general principles 
defined in Article 201(2) of the Code which provided that the authorized warehouse keeper was  to 
be responsible for the payment of the duties and other charges relating to missing goods, namely WT/ACC/SPEC/TLS/5/Rev.3  
 
- 41 - 
 
  by theft or robbery, without prejudice to the possible procedure for tax violation, under the law.  He 
further confirmed that the customs valu ation methods are applied in hierarchical order in accordance 
with Article 98 of the Code which applies to all imported goods, including damaged goods . His 
Government intended to develop legislation concerning the valuation of lost or damaged goods.  
137.  A Memb er underlined that Article 10 of the WTO Agreement  on Customs Valuation provided 
that all information which was provided on a confidential basis for the purposes of customs valuation 
could  not be disclosed by the C ustoms Authority  without the specific permission of the person or 
government providing such information except to the extent it wa s required to be disclosed in the 
context of judicial proceedings. Accordingly, a Member asked the representative of Timor -Leste  to 
clarify wh ich laws of Timor -Leste  provided  an exception to the  confidentiality requirement per Article 
17.3 of the Customs Code. The representative of Timor -Leste responded that, a ccording to Article 
17 of the Code, customs officers we re bound to professional confid entiality regarding confidential 
facts, information and documents that became known to them while performing their duties. 
The confidentiality obligation cease d when the  disclosure of facts, information or confidential 
documents had  been expressly authoriz ed by the person or entity that provided them , or when 
ordered by court in judicial proceedings or required by another authority duly mandated by law 
(Decree -Law No. 19/2009 of 8 April 2009 "Penal Code"; Law No. 17/2011 of 28 December 2011 on 
"Anti-Money L aundering and Counter Financing of Terrorism").  
138.  A Member enquired if Article 69  of the Customs Code provided for  the right of appeal without 
penalty in accordance with Article 11.1 of the WTO Agreement on Customs Valuation . 
The representative of Timor -Leste confirmed that this was the case. An appeal  could  first be made 
to a higher level in the customs administration, but the importer had the right in the final instance 
to appeal to the judiciary.  He further clarified that Article 69 provided for  two types of appeal on 
Customs decisions: (i) administrative appeal addressed to the Minister, which f ell on customs 
decisions or on the final decision of the Director -General regarding a complaint;  and (ii) in the course 
of a customs lit igation process,  where  a judicial appeal could be made to the competent court and 
fell on the final decision of the Director -General and that of the Minister.  Pursuant to Article 70.1(a) 
of the Customs Code, decisions or acts of customs on the customs valu e of the goods were  subject 
to appeal, in particular : decisions on customs duties and other charges on goods, including all 
conclusions or determinations underlying tariff classification, country of origin and customs value 
thereof. Any person who requested a decision from the customs authorities and did not get a reply 
within 30 days could  lodge an appeal.  In accordance with Article 73 of the Customs Code, the time 
limit for filing an administrative appeal was 30 days after notification of the Customs deci sions. Upon 
receipt of the administrative appeal, the competent authority had to  review and confirm, amend or 
annul the contested decision (Article 74.3). If the contested decision was amended or modified, 
customs had to  immediately reimburse or refund any  customs duties, other charges or 
administrative penalties which ha d been levied in excess (Article 77.2).  
139.  With reference to Article 172.2(b)  of the Customs Code, a Member asked what other charges 
may be payable on the goods.  The representative of Timor -Leste responded that a ll charges that WT/ACC/SPEC/TLS/5/Rev.3  
 
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  were payable on the goods included : customs duties, sales tax and excise duties (only applicable to 
the goods listed in Annex II of Taxes and Duties Act No. 8/2008) , as described in relevant sections 
of this Report . There were no other cha rges. 
140.  A Member asked the representative of Timor -Leste to clarify whether  Decision 3.1 on the 
Treatment of Interest Charges in the  Customs Value of Imported Goods applie d regardless of 
whether the finance was provided by the seller, a bank or another natural or legal person , and 
whether it applie d where goods we re valued under a method other than the transaction value.  
The representative of Timor -Leste informed that a ccording to Clause 1(5) of Schedule I of the 
Customs Code, interest on a financial agreement concluded by the buyer relating to the purchase of 
imported goods could  not be considered as part of the customs value in any case where: (i) the 
interest rates we re different from the price actually paid or payable for the goods;  (ii) such goods 
were actually sold at the price stated as the price actually paid or payable;  and (iii)  the buyer, if 
required, c ould demonstrate that the financial agreement was concluded in writing . The declared 
interest rate did  not exceed the value practiced at that time for such transactions in the country 
where the financing was granted.  He confirmed that his Government was ready to amend its 
legislation to fully reflect the requirements of the Decision.  
141.  A Member asked the representative of Timor -Leste to identify provisions implementing  Articles 
1.2(a) and 1.2(c) of the  WTO Agreement on Customs Valuation  concerning related parties. 
The representative of Timor -Leste responded that  Clauses 1 -3 of Schedule I of the Customs Code 
contain ed such  provisions . Pursuant to Clause 1(2) of Schedule I of the Customs Code,  persons were 
deemed to be related if:  (i) they were employees and business managers of each other;  (ii) they 
were legally recognized partners in a business;  (iii) they are an employer and employee; (iv) h e/she 
was a person who owns, controls or holds 5% or more of the voting rights or shares of both;  (v) one 
of them directly or indirectly control led the other;  (vi) b oth were directly or indirectly controlled by 
a third person;  (vii) t ogether they directly or indirectly control led a third person;  (viii) they were 
members of the same family (up to the fourth degree).  Persons were considered from the same 
family when:  (a) they ha d kinship relationship up to the f ourth degree;  (b) they were married or 
maintain a civil union or de facto  union with one another or if one wa s married, maintains a civil 
union or de facto  union with a person having a kinship relationship up to the fourth degree with the 
other;  (c) a person has been adopted as the child of another person or of a person with whom that 
person maintains a relationship of kinship up to the third degree.  
142.  He referred to Clause 2(1)(d) of the Customs Code which specified that the customs value of 
the imported goo ds sh ould be their transaction value , if the buyer and seller of the goods we re not 
related at the time the goods were sold for export or, if the buyer and seller were related at that 
time, but their relationship d id not influence the price paid or payable for the goods; and, the 
importer show ed that the value of the transaction of the goods complies with the requirements set 
forth in Clause 2(2) regarding the sales between related persons . The importer had to provide  
evidence that the transaction value of the goods subject to evaluation, taking into account any relevant factors , significantly approximate d the customs value of other goods exported at the same WT/ACC/SPEC/TLS/5/Rev.3  
 
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  time, or in close proximity, to the value of the goods under  evaluation, being:  (a) the transaction 
value of the identical or similar goods with respect to the sale of such goods for export to Timor -Leste 
between a seller and a buyer which we re not related at the time of sale;  (b) the deductible value of 
the identi cal or similar goods;  (c) the calculated value of identical or similar goods.  
143.  He further explained that  in line with  Clause 2(3) of Schedule I of the Customs Code, when 
the Customs Authority was of the opinion that the relationship between the buyer and se ller of any 
goods influenced the price paid or payable for the goods, the C ustoms Authority notified the importer 
in writing requesting for the reasons that made it form such an opinion, giving the importer 
a reasonable chance to present documentation to C ustoms that prove the relationship did not 
influence such price.  
144.  A Member further asked the representative of Timor -Leste to identify provisions which 
implemented Article 6.2 of  the WTO Agreement on Customs Valuation concerning computed value 
of appraiseme nt. The representative of Timor -Leste responded that Schedule I of t he Customs Code  
did not define provision for requiring or compelling any person not resident in its own territory to 
produce for examination, or to allow access to, any account or other re cord for the purposes of 
determining a computed value. Clause 7(4) of Schedule I provide d that the amount of profit and 
general expenses required to determine the computed value of goods had to  be calculated on a 
percentage basis and determined on the basis of the information prepared in a manner consistent 
with the generally accepted accounting principles of the country of production of the goods, which was provided by or on behalf of the importer of the  goods subject to assessment. When the 
information provided wa s not sufficient, the C ustoms Authority  could  obtain sufficient information 
by verifying the sales for export to Timor -Leste of the  more specific group or variety of goods of the 
same class or ty pe of goods to obtain more information.  
145.  A Member noted that Article 14 of the WTO Agreement on Customs Valuation state d that the 
Interpretative Notes at Annex I and the notes in Annexes II and III form ed an integral part of the 
Agreement , and that articles  of the Agreement were to be read and applied in conjunction with their 
respective interpretative notes. However,  it did not appear that all of the Interpretative Notes ha d 
been implemented in the Customs Code of Timor -Leste . A Member enquired h ow and when  the 
Government of Timor -Leste intend ed to incorporate all Interpretative Notes into its legislation . 
In response, the representative of Timor -Leste informed that his Government had adopted 
Decree- Law No. 87/2022 of 14 December 2022 on "First amendment to Decree -Law No. 14/2017 of 
5 April 2017 "Customs Code" aligning its legislation with the provisions of the Customs Valuation 
Agreement, including its Interpretative Notes.  
146.  The representative of Timor -Leste stated that legislation on the valuation of imports for 
customs and taxation purposes conforming to the requirements of the WTO Agreement on 
Implementation of Article VII of the GATT 1994 would be enacted prior to Timor -Leste's accession 
to the WTO. Timor -Leste would implement the WTO Agreement on Implementation of Article VII of 
the GATT 1994 and Annex I to it (Interpretative Notes) from the date of accession, and if using a 
database as a reference for validating the decla red price of a good, Timor -Leste would not use any WT/ACC/SPEC/TLS/5/Rev.3  
 
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  form of minimum value or fixed valuation schedule for the customs  valuation of goods. If the 
transaction value offered was disputed, Timor -Leste would release the goods subject to the posting 
of sufficient  guarantee for the maximum amount of the customs payments that could be owed. 
Timor -Leste would also apply Decision 3.1 of the Committee on Customs Valuation (Treatment of 
Interest Charges in the Customs Value of Imported Goods) and paragraph 2 of the Deci sion on 
Valuation of Carrier Media Bearing Software for Data Processing Equipment (Decision 4.1). 
The Working Party took note of these commitments.  
- Rules of origin  
147.  The representative of Timor -Leste informed that , until recently,  his Government had not 
applied rules of origin as its measures affecting imports d id not discriminate between imported goods 
based  on their origin . Same  import customs  duty rates  applied to all products regardless of their 
source . The Customs  Authority  determined  the payable duty by valuat ing the goods and did  not 
need to determine the country of origin of the goods. Accordingly, the Taxes and Duties Act did not 
contain any rules for determining the origin of goods.  
148.  Articles 94 to 96 of the  Custo ms Code (Decree -Law No.  14/2017 of 5 April  2017) contained  
general rules of classification of goods by country of origin and requirements for certification of origin. Decree -Law No. 95/2022 of 28 December 2022 contained the newly  established legal 
framework on rules of origin. T he Decree- Law was in compliance with the WTO Agreement on Rules 
of Origin , including the definitions and the origin criteria established in Parts I and II of the 
Agreement  as it adopted the principles of impartiality, and transparency, predictability, cons istency 
and neutrality of the rules of origin, as well as the definitions and the origin criteria established in 
Parts I and II  of the Agreement. It covered both preferential and non -preferential rules of origin. 
The Government was developing subsidiary legislation regulating origin certification processes and 
procedures, aiming to finalise this legislation in the first half of 20 24.  
149.  The representative of Timor -Leste clarified  that certificates of origin could also be  requested  
in case of suspicion of fraud (Article 95 of the Customs Code) , including for the importation of goods 
subject to SPS requirements . The Decree- Law on Rules of Origin also aimed to determine MFN or 
preferential treatment of products. This new legal framework would be used for trade statistics 
purposes, to implement measures and instruments of commercial policy such as trade remedies , 
and for the application of labelling and marking requirements.  
150.  The representative of Timor -Leste  stated that, from the date of accession, Timor -Leste's  laws 
and regulations for preferential and non -preferential rules of origin would comply fully with the WTO 
Agreement on Rules of Origin. He further confirmed that Timor -Leste 's rules of origin would be 
notified to the WTO Committee on Rules of Origin. The  Working Party took note of these 
commitments.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Pre-Shipment inspection  
151.  Timor -Leste did  not operate a system for conducting pre -shipment inspection and ha d no 
plans to do so, as it was putting in place a trade facilitation system in accordance with  the ASEAN, 
WTO and WCO requirements.  
152.  The representative of Timor -Leste  stated that if pre -shipment inspection requirements were 
introduced, they would be temporary and in conformity with the requirements of the Agreement on 
Pre-shipment Inspection. Timor -Leste  would take responsibility to ensure that the operations of any 
pre-shipment inspection companies it retained would meet the requirements of the relevant 
WTO Agreements. The Working Party took note of these commitments.  
- Other customs f ormalities  
153.  The representative of Timor -Leste added that Timor -Leste was a member of the 
World  Customs Organization  (WCO)  since 19 September 2003. It  was not yet a party to the  
International Convention on the Simplification and Harm onization of Customs Procedures , as 
amended on 3 February 2006 ( Revised Kyoto Convention) , but it based its customs practice s on 
international standards such as ones established by this Convention.  
- Application of i nternal taxes on imports  
154.  The followi ng taxes were applied in Timor -Leste : (i) income t ax, (ii) services tax, (i ii) excise  
tax, ( iv) sales tax, and (v) withholding tax . The latter three taxes were applied to imports and 
collected at the time of importation.  
155.  Excise tax wa s charged on products listed in Schedule II  of the Taxes and Duties Act  and the 
Annual Budget Laws . The  list contained in Schedule II of the Taxes and Duties Act  include d: 
(i) alcoholic beverages, including stout beer with an alcohol content of less than 4.5%, malt beer 
with other alcohol content , wine, vermouth and other fermented beverages ; (ii) ethylic alcohol; 
(iii) tobacco and tobacco related products ; (iv) g asoline, petroleum and other related petroleum 
products ; (v) l uxury cars ; (vi) arms and munitions ; (vii) l ighters for smokers ; (viii) smoking pipes ; 
and (ix) r ecreational b oats and private aircrafts.  The exact scope of products  and the applicable 
excise du ty rates were set on a yearly basis.   
156.  Thus, according to Article 3 of the State Budget Law for 2023 (Law No. 15/2022 of 
21 December 2022), in 2023, the excise tax was applicable to: (i) sugars and confectionery products, 
tariff headings 1701, 1702, 1703 and 1704 (US$ 1.00 per kg); (ii) water, including mineral water 
and aerated water, containing added sugar or other sweetening matter or flavored, and other 
non-alcoholic beverages, except fruit or vegetable juices of heading 20.09, tariff item 2202 
(US$ 3.00 per liter ); (iii) malt beer with an alcohol content of less than 4.5%, tariff heading 
2203.00.10 (US$ 2.70 per liter ); (iv) malt beer with other alcohol content, tariff item 2203.00.20  
(US$ 4.50 per liter ); (v) to wine, vermouth and other fermented beverages, tariff headings 2204, 
2205 and 2206 (US$ 4.50 per liter ); (vi) tobacco, tariff lines 2401, 2402 and 2403 (US$ 100.00 per 
kg); (vii) passenger cars, tariff heading 8703  (10% of the value exceeding US$ 10,000, 20% of the WT/ACC/SPEC/TLS/5/Rev.3  
 
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  value exceeding US $ 25,000 and 30% of the value exceeding US $ 50,000) ; (viii) captive bolt guns 
for slaughtering animals, tariff heading 9303.90.00, is 10% of the value.  Acquisition by the State or 
other public legal persons, of arms and  ammunition for the National Police of Timor -Leste (PNTL), 
the Scientific Police for Criminal Investigation (PCIC) and the FALINTIL – Defence Forces of 
Timor -Leste, was exempt from the payment of the excise tax, as well as other taxes, fees and levies.  
157.  According to Articles  10.1 and 10.2 of the Taxes and Duties Act, excise tax was equally charged 
on both locally  manufactured  and imported products. For locally manufactured products, the excise 
tax was payable when  the goods we re removed from a registered man ufacturer 's warehouse . For 
imported goods, the excise tax was payable at the time of release of the imported products into 
circulation. G oods exported from Timor -Leste within 28 days after their production or import we re 
not subject to excise tax . To be exempted from the tax , a taxpayer had to  submit documentation 
proving the export of the said goods to the Central Bank of Timor -Leste (CBTL). I t was anticipated 
that the excise tax w ould be maintained as part  of the ongoing Fiscal Reform.  
158.  Sales tax was charged  on sales of goods and services as per  Schedule III  of the Taxes and 
Duties Act . Article  15 and Schedule III of the Act  provided  that the tax applie d to: (i)  taxable goods 
imported into Timor -Leste (2.5%); (ii ) taxable goods sold in Timor -Leste on or after the date to be 
specified by the National Parliament (0%); or (iii) taxable services provided in Timor -Leste on or 
after the date to be specified by the National Parliament  (0%). For imported goods, the sales tax 
was payable at the time of release of the imported products into circulation . Goods exempted from 
import duties under the Taxes and Duties Act, or subject to total or partial exem ption under the 
Customs Code, as specified in paragraphs 118  - 120, were exempt from sales tax under Article  16 
of the Taxes and Duties Act.   
159.  The representative of Timor -Leste added that his  Government  was aware th at the provisions 
on the sales tax imposed on imported products , but not on locally produced goods , were inconsistent 
with the national treatment requirement in Article III of the GATT 1994. It wa s anticipated that 
the ongoing Fiscal Reform w ould replace the sales tax with a value -added tax  (VAT)  which would be 
levied equally on both imported and locally produced goods.  
160.  Payments made by resident entities for goods acquired from non -resident suppliers were 
subject to a 10% withholding tax ( "WHT") from the gross amount of the payment, as provided in 
Article 57 of the Taxes and Duties Act.  This regulation was being revised under the fiscal reform , 
since it violate d Article III of the GATT 1994 on non -discriminatory application of taxes.   
161.  With respect  to the VAT, the representative of Timor -Leste clarified that  it was 
the Government 's intention to introduce this tax as part of the ongoing Fiscal Reform by revising 
Law No. 8/2008 of 30 June 2008 on "Taxes and Duties Act" and approving a new  VAT Law, aiming 
at achieving  the following objectives: (i) moderniz ing the tax system and improv ing tax  collection, 
by generating information on the key elements of value added (wages and profits) and improving 
record keeping;  and (ii) raising  revenue more efficiently, by reducing the number of tax instruments 
that the Government  has to manage in orde r to collect a given level of revenue , and i n doing so, WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Timor -Leste would consider replacing the sales tax, the withholding tax and the service tax with the 
VAT; (iii) creating a level -playing field and reduc ing the cost of doing business, through its incidence 
on consumption and by creating incentives for compliance that wer e even across all sectors of the 
economy; (iv) improv ing the business environment and attract ing investment, by inducing increased 
transparency in  transactions and turning the country into a de- facto tax-free zone for exports;  and 
(v) reducing  informality in the economy, by granting credit/refund mechanisms to the  informal 
sector . Such mechanisms would serve as incentives for the informal sector to come into the VAT  net. 
Efficient coverage of the value chain w ould be ensured,  and the threshold w ould be set at the 
adequate level.  
162.  To meet the se objectives, the Government of Timor -Leste was considering a relatively simple 
VAT system, comprising the followin g characteristics: (i) a consumption -based VAT, with the  tax 
falling on final consumers, including the issuance of credits to businesses for taxes paid on 
the purchase of capital goods; (ii) covering all goods and services that enter into the value chain, 
thus realizing the full incentive effect and providing full information to be able to make refunds or 
credits on exports; (iii)  single rate for VAT, to avoid "cheating" and ease complexity of 
administration; (iv) zero-rating limited to exports, working as a tool to attract FDI and turning 
Timor -Leste into a  duty-free zone; and, (v) exemption limited to non -processed foods, which do not 
enter the value chain and can therefore be exempted, benefiting more than 60% of the most 
vulnerable families' c onsumption in Timor -Leste.  
163.  In response to a  Member's question, he added that t he legislative process for approval of 
the VAT Law had started back in 2017 . Since December 2020, a joint fiscal and public financial 
management reform package was being revisit ed by the Ministry of Finance through the Tax 
Authority. It was seeking opinions, comments and feedback from the public, including from legal 
firms, on the draft VAT L aw prior to its submission to the Council of Ministers and the National 
Parliament , by the end of  2023. The draft VAT Law had been  submitted to the Working Party . 
The action  plan for revision of the Taxes and Duties Act  and approv al of the VAT Law  is contained in 
Annex 15.  
164.  The representative of Timor -Leste  confirmed that by 1 July 2025, Timor -Leste 's laws, 
regulations and other measures relating to internal taxes and charges levied on imports would be in 
full conformity with its WTO obligations, including Article III of the WTO General Agreement on 
Tariffs and Trade  1994, and that it would implement  such laws, regulations and other measures in 
full conformity with those obligations. The Working Party took note of these commitments.  
- Anti-dumping, countervailing duties, safeguard regimes  
165.  The representative of Timor -Leste informed that Timor -Leste did  not have any anti -dumping  
or countervailing duties or  a safeguard  regime in place . There was political will of  the Government  
to engage and comply with the provisions of the WTO Agreement on Implementation of Article VI of 
the GATT 1994 (Anti-dumping Agreement) , the WTO Agreement on Subsidies and Countervailing 
Measures (SCM  Agreement)  and the WTO Agreement on Safeguards . The development of policy and WT/ACC/SPEC/TLS/5/Rev.3  
 
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  legislation on trade remedies had been  finalized in end-2023. The Policy and Decree -Law on Trade 
Remedies , which were yet to be promulgated and enacted,  had been shared with the Working Party.  
166.  A Member requested the Government of Timor -Leste to commit not to impose any 
antidumping, countervailing or safeguard measures, includi ng the initiation of any investigations, 
until its authorities and legislation we re notified to the appropriate WTO Committees.  
The representative of Timor -Leste responded that , as Timor -Leste d id not yet have any enacted anti-
dumping, countervailing or safeguard frameworks  in place, any policy decision s on such actions 
could be taken  once the appropriate, WTO -consistent legislation was enacted  and notified to the 
relevant WTO Committees .  
167.  The representative of Timor -Leste confirmed that his Government would not apply any 
anti-dumping, countervailing or safeguard measures until it had implemented and notified to the 
WTO appropriate laws consistent with the provisions of the WTO Agreement on Safeguards, the 
WTO Agreement on the Implementation of Article VI of the GATT 1994, and the WTO Agreement on 
Subsidies and Countervailing Measures. Timor -Leste would ensure the full conformity of any such 
legislation with the relevant WTO provisions, including Article s VI and XIX of the WTO General 
Agreement  on Tariffs and Trade  1994, the WTO Agreement on Safeguards, the WTO Agreement on 
the Implementation of Article VI of the GATT 1994, and the WTO Agreement on Subsidies and 
Countervailing Measures. After such legislation was implemented, Timor -Leste would o nly apply any 
anti-dumping duties, countervailing duties and safeguard measures in full conformity with the 
relevant WTO provisions. The Working Party took note of these commitments.  
B. EXPORT REGULATION  
- Customs tariffs, fees and charges for services ren dered , application of internal taxes 
to exports   
168.  The representative of Timor -Leste informed that t here were no laws imposing export duties 
and taxes. T he Government  of Timor -Leste  did not  intend  to introduce  duties and taxes on exports 
as part of  the Fiscal Reform. The was an administrative fee of US$ 1.00 per export transaction.   
- Quantitative export restrictions , including prohibitions, quotas and licensing 
systems  
169.  There were no laws imposing quantitative export restrictions, prohibitions or quotas. 
This policy was expected to be maintained in the future, as the Government of Timor -Leste was 
working on a draft  Export Promotion Law  as part of the country 's investment policy.  
170.  Natural and legal pe rsons exporting on a commercial basis were required to  register according 
to Decree- Law No. 16/2017 of 17 May 2017 on "Commercial Registration ", as described in section 
"Trading rights, registration requirements for engaging in importing and exporting" . WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Export subsidies 
171.  The representative of Timor -Leste informed that t here were no export financing, subsidy or 
export promotion measures in force. However, t hese types of measures could  be introduced in future 
economic policy and statutes aimed at stimulating exports . The Government was working on 
an Export Promotion Law and respective regulations, based on WTO standards. If introduced, such 
measures would comply with the WTO Agreement o n Subsidies and Countervailing Measures (SCM 
Agreement). He further informed that there were no laws imposing minimum export prices, 
voluntary export restrictions, or orderly marketing arrangements.  
172.  He further informed that Section II, Articles 242 to 243 of the Customs Code (Decree -Law 
No. 14/2017 of 5 April 2017) set forth a customs duty drawback regime . Under this regime,  
the customs charges paid when importing  raw materials, semi -finished products, components, and 
other separate parts and pieces intended for industrial transformation or incorporation into 
manufacturing, were refunded when the final product was exported. Only duly authorized operators  
(customs b rokers) , as determined by the Commissioner  of the Customs  Authority , were allowed to 
import goods under this regime. According to Article 32.1, Article 34.1(a -e) of the Code, they were 
required to : (i) have valid a customs broker licen ce issued by the Comm issioner of the Customs  
Authority ; (ii) have a TIN number; (iii) prove that they had no outstanding debt, and (iv) prove that 
they had not been convicted in any criminal proceeding or for tax offences. Article 38 require d 
customs b rokers to submit a bond of a minimum of US $ 10,000 and a maximum of US$ 150,000.  
173.  The representative of Timor -Leste  confirmed that any subsidy programmes provided by his 
Government after accession would be administered in conformity with the WTO Agreement on 
Subsidies and Countervailing Measures, including Article 27, and that all necessary information on 
Timor -Leste' s export subsidies and other notifiable programmes would be notified to the WTO 
Committee on Subsidies and Countervailing Measures according to Article 25  of the Agreement . 
The Working Party took note of these commitments.  
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  
- I ndustrial policy, including subsidies  
174.  The representative of Timor -Leste informed that his Government aimed to promote light 
manufacturing as one of the five priority sectors of the economy. However, t he use of the US$, 
relatively high minimum wages and the  high cost  of infra structure provided obstacles to 
manufacturing development in Timor -Leste . In the medium -term, manufacturi ng development 
would focus on developing industrial capacity by adding value to agricultural products and attracting investment in food processing and beverage manufacturing aimed at the domestic market, such as 
coffee, candlenut and forestry products. For this, the Government  had been develop ing an Industrial 
Policy and an Action Plan to P romote Manufacturing  since 2017. This Policy  had been approved, while 
the Action Plan w as to be considered by the Council of Ministers  by the end of  2023. 
The representative of Timor -Leste confirmed that t he Policy and the Action Plan w ould not include 
any subsidy or tax incentives to promote  manufacturing in particular sub -sectors .  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  175.  A Member asked a question on the Action Plan referred to in paragraph  174. 
The representative of Timor -Leste further explained that Timor -Leste's manufacturing industry was 
facing a number of constraints, such as limited domestic production capacity, poor access to finance, 
and lack of competitiveness and skills. The action plan to promote manufacturing would foresee 
necessary measures for furthering industrialization that could contribute to job creation, the transfer 
of technology , and management skills. Specifically, the plan would focus on the development of light 
manufacturing through efficient utilization of resources, based on the processing of materials, 
manufacturing of merchandises,  and distribution of goods , as well as the provision of services or any 
other activities that are specified by the Government as potential contributions to development and 
diversification of the national economy, with the dual aim of encouraging  the local private sector and 
promoting and attracting foreign direct investments (FDI) in the countr y, to create job opportunities 
and absorb the currently underutilized youth dividend.  
176.  A Member asked how the Government of Timor -Leste envisaged developing the processing of 
agricultural products  and how it planned to encourage investment in food processing and beverage 
manufacturing . In response, the representative of Timor -Leste referred to Chapters III, V and VI of 
the Private Investment Law (Law No. 15/2017 of 23 August 2017) which addresse d the rights and 
guarantees, as well as the  special and  fiscal benefits provided  to investors , as described in section 
"Investment regime ". These benefits  were provided to investors in both agriculture and 
manufacturing (including food processing).  By Decree -Law No. 45/2015 of 30 December 2015, the 
Government had also re -established the Investment and Export Promotion Public Agency 
(TradeInvest Timor -Leste) as a one -stop-shop for private investments.  
177.  For beverage manufacturing, he also referred to the signing of a Special Investment 
Agreement between the Government and Heineken Asia Pacific  in 2015. The agreement, that was 
worth US $ 40 million, include d benefits and long- term leasing arrangements, open ing the way for 
Heineken to build a beverage production plant manufacturing  a range of soft drinks, beer, and 
mineral water, with 200 direct and 800 indirect jobs. Timor -Leste  remain ed attractive to more 
investments in the beverage industry.  
178.  The represent ative of Timor -Leste confirmed that Timor -Leste would administer its subsidy 
programmes in full conformity with the WTO  Agreement on Subsidies and Countervailing Measures, 
including Article 3.1(b) and Article  27.2. All necessary information on these subsidy programmes 
would be notified to the WTO Committee on Subsidies and Countervailing Measures in accordance 
with Article  25 of the WTO Agreement on Subsidies and Countervailing Measures. The Working Party 
took note of these commitments.  
179.  A Member noted that the WTO Agreement on Fisheries Subsidies had been adopted at the 
12th WTO Ministerial Conference (MC12) on 17 June 2022. For the Agreement to become 
operational, two thirds of Members ha d to deposit their "instruments of acceptance" with the WTO  
Secretariat . The Member  invite d Timor -Leste to ratify the  Agreement at the time of ratification of its  
Accession Protocol.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  180.  In response, the representative of Timor -Leste confirmed that, unless the 2022 Agreement on 
Fisheries Subsidies or any subsequent comprehensive fisheries disciplines have already entered into 
force by the time of acceptance of its Accession Protocol, Timor -Leste shall accept Protocol Amending 
the Marrakesh Agreement Establishing the World Trade Organization: Agreement on Fisheries Subsidies (WT/L/1144
) and any subsequent protocols establishing comprehensive fisheries 
disciplines at the same time as it accepts its WTO Accession Protocol. The Working Party took note of this commitment. 
- Technical barriers to t rade, standards and certification  
181.  The representative of Timor -Leste informe d that there were no technical regulations , 
standards and c onformity assessment procedures in place, such as testing, inspection or 
certification, either for domestic or imported goods.  However, the Government wa s interested in 
developing and approving suc h standards to ensure conformity with the WTO Agreement on 
Technical Barriers to Trade (TBT Agreement) and the respective ASEAN agreement.  
182.  In response to a question from a Member on the Government's plans for the development of 
the necessary legislation and regulations to comply with the TBT Agreement, he informed that the 
Government was in the process of building the  legal and institutional framework, which would  include 
appropriate legislation, technical regulations, standards and conformity assessment procedures , in 
conformity with the TBT Agreement , as well as the establishment of an Enquiry Point and a 
Notification Authority as transparen cy mechanisms required by  the TBT Agreement . The Action Plan 
for the Implementation of the TBT Agreement is provided in Annex 16. Responding to a question, 
he elaborated that his Government had been conduc ting an inventory to determine what specific 
aspects the new legislation must cover . It included, among others: (i) the establishment of the 
National Quality Council;  (ii) metrology, standards and conformity assessment systems and 
procedures;  (iii) metrology verification services; (iv) g uidelines for inspection and certification 
schemes; (v) national quality systems; (vi) accreditation criteria; (vii) n ational standards; and  (viii) 
technical regulations .  
183.  He added that, a s part of these efforts , the Institute of Quality of Timor -Leste (IQTL) had been 
created by Decree- Law No. 10/2018 of 9 April 2018 as the national regulatory entity for qualification, 
standardization and metrology. Its mission was to implement and manage the national quality 
system and other regulatory qualification systems that were conferred upon it by law, to promote 
and coordinate activities that aim to demonstrate the credibility of the action of economic agents, 
as well as to develop actions necessary for its  function as a national metrology laboratory . The 
Institute was in the process of implementation.  In response to a question from a Member, he 
elaborated that the duties of the IQTL  were to:  
• Implement, manage and coordinate a national quality system, with a view to integrating all 
the relevant compon ents for improving the quality of products and services, contributing to 
increasing productivity, competitiveness and innovation in the public and private sectors;  
• Propose to the Government measures leading to the definition of national policies related to 
the national quality system, within the scope of standardization, qualification and metrology;  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  • Implement and manage the national metrology laboratory in the scientific and applied 
components, ensuring the realization, maintenance and development  of national standards of 
measurement units and their traceability to the International System (IS) , promoting its 
dissemination throughout the national territory;  
• Ensure and manage the legal metrological control system for measuring instruments  and 
recogn ize competent entities for the delegated exercise of that control, whenever this proves 
necessary to guarantee national coverage and coordinate the network constituted by those 
entities;  
• Establish the quality identification marks of the national quality sy stem and ensure 
the respective management;  
• Promote and develop training actions in the field of quality, namely qualification, 
standardization and metrology;  
• Guarantee and develop quality through the establishment of protocols and strategic 
partnerships with public and private entities, as well as scientific and technological entities that voluntarily , or through inherent functions , join efforts to define principles and means that 
aim at quality standards;  
• Coordinate, qualify and recognize public sector and private entities as sectorial standardization 
bodies in which the IQTL delegate d technical standardization functions in sectors of specific 
activity;  
• Develop cooperation and service provision activities to national and foreign entities interested 
in the field of quality;  
• Ensure and promote the participation of Timor -Leste as a member of organizations, working 
groups and other international bodies within the scope of its powers and competences;  and 
• Ensure the participation of Timor -Leste as a member of international metrology organizations 
and the obligations arising therefrom, namely participation in the  respective works.  
184.  Responding regarding the plan to become a member of the International Standards 
Organization (ISO), the representative of Timor -Leste added that the IQTL  had the competence to 
adhere to the International Standards Organization (ISO), but the Institution was not yet fully 
functional. The IQTL had been working in collaboration with the Authority of Inspection and 
Supervision of  Economic, Sanitary and Food Activity  (AIFAESA) to facilitate meetings with the ISO 
to ensure that Timor -Leste was complying with the ISO standards. Such efforts reflect ed Timor -
Leste 's commitment to becom e a member of the ISO in the near future.  The Government, through 
the NQCI , would  put the necessary efforts to promote coordination with the relevant bodies  
(including the  Ministry of Commerce and Industry, Ministry of Health, Ministry of Agriculture, 
Livestock, Fisheries and Forestry , Ministry of Public Works, AIFAESA, National Authority for 
Petroleum and Minerals, and private sector)  to ensure  alignment with the ISO standards. At the 
same time, to achieve compl iance with the ISO standards , the IQTL required further assistance in 
developing the necessary facilities, including developing a standardized laboratory to facilitate 
commercial activities , and in strengthen ing the capacity of human resources in the specific areas.  
185.  Regarding the establishment of the TBT enquiry point he added that his Government had 
established the TBT enquiry point within the structure of  the IQTL:  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Name:  Rosito de Sousa Monteiro  
Position:   President of Quality Institute of Timor -Leste  
Address:   Comoro, Av. Pre s. Nicolau Lobato, Díli, Timor Plaza, 3rd Floor, IQTL Office  
Phone:   +670 33 10 158 (landline); +670 7756 0067 (mobile)  
E-mail address:  iqtl2022@gmail.com; sousarosito82@gmail.com  
186.  In addition, he informed that,  in order to ensure compliance with the TBT Agreement, 
Timor -Leste would need to  establish  a conformity assessment infrastructure, which should  also 
include  the accreditation of Testing, Calibration and Inspection Conformity Assessment Bodies 
(CABs ); estab lish a Notification Authority; and  tackle participation in  the activities of the  
international standards setting bodies.   
187.  A Member further asked to confirm if  the Government of  Timor -Leste  planned to set up one 
single accreditation body, independent of conformity assessment bodies (CABs) and testing 
institutes . In response, the representative of Timor -Leste confirm ed that a single National 
Accreditation Body (NAB) independent of CABs would be established by 2025.  
188.  In addition, responding t o a M ember's request to set up procedures for transparent public 
consultations with stakeholders , which would include the notification of draft legislative proposals  in 
line with the transparency obligations under the TBT Agreement, the representative of Timor -Leste 
confirmed that the Government was committed to do so . His Government was also in process of 
setting up a mechanism  for transparent public consultations for all draft legislative proposals with 
respect to technical regula tions, standards and conformity assessment procedures by May 2024.  
189.  Responding to a Member's question on whether his Government would  seek technical 
assistance to participate in international standards -setting bodies ' activities such as those under 
Codex  Alimentarius , he informed that since Timor -Leste ha d become a member of Codex in February 
2018, it was  open to seek ing such technical assistance , namely o n: (i) Food Safety, Quality and 
Standards; and  (ii) the TBT Training of Trainers (ToT) programme.  
190.  The representative of Timor -Leste  confirmed that Timor -Leste  would progressively implement 
the WTO Agreement on Technical Barriers to Trade in accordance with the action plan set out in 
Annex 16. He further  confirmed that during the trans ition period, existing measures would  be applied 
on a non-discriminatory basis, i.e., providing for national treatment and MFN treatment for all 
imports. Measures in place at the time of accession and already consistent with the provisions of the WTO Agree ment on Technical Barriers to Trade would not be subject to transition. Timor -Leste  would 
ensure that any changes made in its laws, regulations and practice during the transition period would not result in a lesser degree of consistency with the provisions  of the WTO Agreement on Technical 
Barriers to Trade than existed at the date of accession. Full  implementation of the WTO Agreement 
on Technical Barriers to Trade would start from 1 January 2026  withou t recourse to any further 
transition period. The Working Party took note of this commitment.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - S anitary and phytosanitary measures  
191.  Timor -Leste 's sanitary and phytosanitary measures had been  regulated by  Decree- Law 
No. 21/2003 of 31 December  2003 on  "Quarantine and Sanitary Control on Goods Imported and 
Exported" . Government Decree No. 1/2006 of 20 September 2006 had established the Rules and 
Procedures to Implement Decree- Law No.  21/2003 on the Exportation and Importation of Goods 
subjects to Quarantine Control (inspection, isolation, observation, treatment, detention, prohibit 
from enter ing the country, destroy and release). This legislation had been superseded by Decree- Law 
No. 36/2023 of 31 May 2023 on "Plant Health and Quarantine" and Decree- Law No. 41/2023 of 
31 May 2023 on "Animal Health and Quarantine" (which entered into force on 1 September 2023) , 
and continued to apply only partially, until necessary SPS regulations were adopted to implement 
the new Decree- Laws. 
192.  The Directorate  General  of Quarantine and Biose curity  (DGQB) , which wa s part of the  Ministry 
of Agriculture, Livestock, Fisheries and Forestry , administer ed the SPS l aws and regulations. 
The functions and competences of the Directorate were defined in  Articles 7 and  10 of Decree- Law 
No. 41/2023, and Articles 6 and 9 of Decree- Law No. 36/2023. The Chief Veterinary Officer for 
Animal Health and Quarantine  (CVO) and the National Plant Protection Officer (NPPO) within  
the Ministry of Agriculture, Livestock, and Fisheries and Forestry w ere responsibl e for coordinating 
the implementation of the animal health and quarantine , and of the phytosanitary regulations, 
respectively . 
193.  T he Ministry of Health wa s the food safety authority of Timor -Leste, in charge of food safety 
measures.  The Authority of Inspection and Supervision of Economic, Sanitary and Food Activity 
(AIFAESA), established by Decree- Law No. 26/2016 of 29 June 2016, was responsible for 
the enforcement of Decree -Law No. 28/2011 of 20 July 2011 on "Food Industry and Marketing 
Regulation" t hat subjected imports of processed food products to sanitary regulation, guided by 
the Ministry of Health and the Ministry of Commerce and Industry (MCI).  
194.  Th e representative of Timor -Leste informed that T imor-Leste had become a member of the 
World Organization for Animal Health ( WOAH) in November  2010 and a member of the Codex 
Alimentarius  Commission  (CAC)  in February 2018. It had since been actively participating and 
working on ensuring its compliance with the relevant standards. 
195.  T imor -Leste  was not  yet a party to the International Plant Protection Convention (IPPC) . 
Responding to a Member 's question , he added that the Government has put forth significant effort 
to comply with the IPPC by participating as an observer. However, the Government recognized a 
few challenges before being in full compliance with the IPPC requirements  (which included the 
provision of basic infrastructure to establish a national laboratory ). These included the: lack of basic 
facilities, including a laboratory and quarantine installation facilities at the entry point (for treatment, 
isolation during the incubation period, etc) ; lack of qualified human resources in the specific areas, 
in particular to conduct tests on imported products ; as well as lack  of permanent funds necessary 
to operate the quarantine facilities.  Having said that, Timor -Leste ha d shown its full commitment to WT/ACC/SPEC/TLS/5/Rev.3  
 
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  IPPC through its membership to the Asia and Pacific Plant Protection Commission (APPPC) since 
November 2012 with a hope to become a member of the IPPC, once the necessary infrastructure  
was in place  and human resource capacity  was strengthened. Timor -Leste was open to Members'  
assistance to accelerate its IPPC  membership.  Timor -Leste's IPPC contact point had been registered 
on the IPPC website since 2008.1  
196.  He informed that Timor -Leste claim ed freedom from foot and mouth disease, b ovine 
spongiform encephalopathy, rabies and h ighly pathogenic avian influenza (bird flu ) and impose d 
restrictions against the import of animals or products that may introduce these diseases. 
Accordingly, for public health reasons , the importation of the following products was prohibited: 
(i) any proteins for animal feeding containing meat powder, bone powder, blood powder, or fat from 
mammal tissues; (ii) poultry powder for ruminant feeding;  (iii) any products from cows, sheep, or 
goats showing clinical signs of s pongiform encephalopathy ; (iv) any animals or any products of any 
animals showing clin ical symptoms of certain diseases including, for example, foot- and-mouth 
disease and bird flu; and (v) n on-transformed fat . In addition, i mport permits could also  not be 
issued in respect of: (i) any items listed in the Convention on International Trade in  Endangered 
Species of Wild Fauna and Flora (CITES, Article 72); (ii) any items originating from a country or 
areas where there was an ongoing occurrence of quarantine -related plagues or diseases (Article 72); 
and (iii) exotic seeds included in a list to b e approved by a Ministerial Order (Article 82) .  
197.  Apart from the prohibited imports indicated in paragraph 196 , any importation of agricultural 
product s (i.e., animals, plants, animal or plant products or other related articles ) to Timor -Leste was 
allowed subject to  an import permit from the DGQB  (Articles 33 and 35 of Decree-L aws Nos. 36/2023 
and 41/2023, respectively ). This requirement was  based on the lists approved by the WOAH and 
IPPC.  Applications for import permits had to be accompanied by a certificate of origin.  Import permits  
were subject to compliance with conditions and requirements including specification of origin, 
inspections, treatments, points of  entry and exit, proofs, analyses and tests, or isolation in the 
country of export in a quarantine facility . They also had to comply with  the import requirements  
specific to the case and the international standards and recommendations.  
198.  R esponding to a Member's request for additional information on this procedure, he  elaborated 
that the application form require d the provision of  the address and contact details of the exporter 
and importer and the country of origin. For each  imported  item, the applicant was required to list 
the country of origin, the common product name s, the scientific names, a description of the items, 
and the quantity or volume to be imported.  In all cases, the importer had to provide detai ls on 
the routing, transport mode, and expected date of arrival. I mporters w ere also required to specify 
if they had access to a registered Quarantine Approved Premise (QAP). When the importer (or the 
clearing agent) submitted the completed application for m, the DGQB  contacted their counterpart in 
the exporting country to request verification. Each import required a  separate permit and had to 
 
1 https://www.ippc.int/en/countries/timor -leste/.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  undergo a full verification process.  The decision to grant an import permit took place within 3 working 
days.  
199.  He further explained that i mportation could be made immediately upon receipt of an import 
permit. The permit  was valid until the  arrival of  the imported goods. At the actual importation, the 
import permit was to be presented to the C ustoms Authorit y for clearance procedures according to 
the ASYCUDA- World System. The  Customs Authority had the right to detain any product , should 
there be no permit  for the  specific product under these criteria.  At the same time, the Government 
was committed to comply with the SPS Agreement, in particular with Annex C(1)(b). Responding to 
an invitation from a  Member to reconsider this import procedure and replace it with a system of 
approved countries and establishments which wa s less cumbersome, more transparent and could  
provide appropriate guarantees , the representative of Timor -Leste confirmed that the existing 
procedure would be revised as soon as appropriate facilities were  in place , in conformity with the 
international standards.  
200.  Responding to a question on the requirement for applications for import permits to be  
accompanied by a certificate of origin, the representative of Timor -Leste reflected on Timor -Leste 's 
minimum infrastructure conditions to prevent disease outbreak in the country. In this situation, 
the Government assessed  that requiring such a certificate would be the most effective measure fo r 
preventing the importation of diseases. He believed this requirement was in compliance with 
the rules set under the WOAH and IPPC standards.  
201.  To obtain an import permit , an importer had to  pay the relevant fees and charges and present 
the following documents to the DGQB  to release the cargo:   
• For live animals : a zoo-sanitary  certificate issued by the competent authority of the  exporting 
country and signed by the veterinary office who carried out the inspection;   
• For plants and d erivative products : a phytosanitary certificate issued by the competent 
authority of the exporting country and signed by a competent official conducting the respective 
inspection. For any live plants, it wa s also necessary to comply with a pre -export quara ntine 
regime in the exporting country and a post import quarantine regime.  
202.  Decree- Law No. 21/2003 had further  prescribe d specific rules for the following  imports:   
• Live animals: imported animals had to  be subject to a quarantine period of at least 14 days 
(Article 30) and a veterinary inspection (Article 31);  
• Incubation eggs: the imports had to  be sourced from a country that has been approved by 
the Directorate of Quarantine Services  and Biosecurity  (Article 33);   
• Hen eggs for consumption: had to  be free of diseases or contaminations such as feather and 
feces (Article 34);  
• Fresh fish for human consumption: s hould  not be subject to an import licenc e (Article  35.1);   
• Dried fish: upon arrival , imports had to be inspected for detection of insect infestation 
(Article  35.3);   
• Canned meat or hermetically sealed packs of meat not requiring refrigeration : could  be 
imported without restrictions (Article 36.1);  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  • Any other import of fresh meat: without restrictions  as long as (a) it was packed in 
hermetically sealed packages or containers, weigh ing less than 5% of its meat weight and 
required refrigeration in order to maintain quality , or (b) it was canned meat that  did not 
require refrigeration (Article 36.2) ;  
• Milk and milk products: had to  be derived from pasteurized milk (Article 37);   
• Animal vaccines: required prior authorization from the Directorate of Quarantine and 
Biosecurity  for some vaccines (Article 38) , impo rt require d an import licen ce;  
• Animal skins and skin -made products: imported finished products were subject to veterinary 
inspection (Article 39);   
• Live plants and vegetal products: had to  be accompanied by a phytosanitary certificate issued 
by the compet ent authority of the exporting country (Article 42.1);   
• Imports of machinery, equipment and used vehicles: we re subject to sanita ry inspection 
(Article 44); and , 
• Import of soil samples: subject to an import licen ce (Article 45).  
203.  Responding to a Member's question on these rules, the representative of Timor -Leste informed 
that the Government was revisiting  the existing  framework in light of the SPS Agreement.  With 
regard to item (vii),  he clarified that the weight requirements for imports of fresh meat were merely 
for statistical purposes to measure the annual consumption capacity of meat in the country.  This 
measure would be revised as soon as appropriate facilities were  in place , in conformity with the 
international standards.  
204.  He added that t he Ministry of Agriculture, Livestock, and Fisheries and Forestry  and the 
Ministry of Finance could issue a joint ministerial order defining service fees connected to the 
granting of import permits , issuance of certificates, or any other fees for services . To date , no action 
had been taken on introducing such fees . Should any fees be charged in the future, the fees would 
be based on the recovery of the actual costs,  in line with Article VIII and X of the GATT 1994, while 
the Government would ensure that the methodology to calculate these costs was publicly available 
or provided upon request. Such methodology would be applied in a transparent manner.  
205.  The representative of Timor -Leste added that Timor -Leste currently import ed over 
250 commodities from many countries. Each import require d an import risk analysis to assess the 
risk posed and to establish the need for import conditions to manage the risk . The risk analysis 
process was applied in accordance with the rules established by Codex,  the WOAH and the IPPC. At 
the same time, due to t he existing lack of infrastructure and adequate human resource capacity, the 
procedures were adjusted to the national conditions, whereby the scientific procedures, including 
pre-inspection measures of products, we re defined together with an exporting coun try. Prior to 
developing an import risk analysis, both countries were required to sign an agreement to safeguard 
both parties' concerns in conducting a diagnostic risk assessment measure. He re -confirmed his 
Government's commitment to take into considerati on exporting Members' equivalent sanitary or 
phytosanitary measures, in accordance with the international measures set by the WOAH and the 
IPPC.  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 58 - 
 
  206.  He added that his  Government was aware that sanitary and phytosanitary requirements was 
an area of expertise that required duly -trained capacity in order to fully enforce the Decree- Laws. It 
hoped that the WTO accession process would result in such enhanced capacity to handle SPS issues.  
The Government was  committed to continue  the necessary reforms to be in conformity with the 
standards of Codex, WOAH, and IPPC as it develop ed its implementing SPS regulations . He further 
recalled that Decree- Law No. 21/2003 had been repealed with the adoption of Decree- Laws 
Nos. 36/2023 and 41/2023, which had been drafted with assistance by the International Finance 
Corporation (IFC, member of the World Bank Group)  and provided to the Working Party for prior 
review. The Government was also drafting an Action plan for implementation of obligations under 
the IPPC.  He fur ther informed that his Government had developed an Action Plan for the 
Implementation  of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures 
(the SPS Agreement). This Plan wa s provided to the Working Party in document WT/ACC/TLS/12  
and is reproduced in Annex 18. In line with Strategy 3 of this Action Plan, his Government was 
committed to have a WTO-consistent risk assessment methodology , which would be based on  the 
principles  established by Codex, WOAH and IPPC,  in place by 2025.  
207.  He added that previously import permits relating to live plants could not be issued to 
individuals  or private companies  (i.e., persons other than Government services, public institutions, 
and non- Governmental organizations involved in projects to improve agriculture and forests 
approved by the Government). Import of the following species of seeds was subject to import 
authorisations : (i) rice; (ii)  corn; (iii) coffee; (iv) manioc; (v) bananas; (vi) citrus fruits; (vii) mango; 
(viii) coconut; (ix) phaseolus vulgaris (the common bean); (x) vigna; (xi) garlic; (xii) onion; 
(xiii) common potato; (xiv) pineapple; and, (xv) avocado pear.  In response to a Member's question, 
he clarified that these commodities had been selected according to the rules set by the IPPC, as they 
were identified to pose higher risks to human, animal or plant health. Other products that were not 
part of this list had been id entified to pose lower health risks, and thus did not require pre- clearance 
inspections prior to importation. These risks had been selected in accordance with the lists identified by the IPPC.  He added that this ban had been eliminated with the adoption of  Decree- Law 
No. 36/2023. According to Article 28 of the Decree- Law, the individuals and private companies c ould 
import live plants and plant products to Timor -Leste provided that they we re in possession of (a) an 
import permit ( licence ), when required by t he law, (b) a phytosanitary certificate issued by the 
country of export, when required by the law, and (c) any other documents that may be prescribed by the law, its regulations or any other commercial or customs legislation.  
208.  Referring to Decree- Law No. 26 /2016, a Member asked if AIFAESA was also envisaged as the 
national standards setting body. The representative of Timor -Leste responded that  AIFAESA had 
been established by Decree -Law No. 26/2016 of 29 June 2016 with the mandate to ensure quality 
control activities of foodstuffs, conditions of transport, health , and places where they we re produced 
and sold.  At the same time, a s described in section "Technical barriers to trade", the Institute  for 
Quality of Timor -Leste (IQTL) was the body responsible for defining the national standards. AIFAESA 
had the competence to execute the national standards defined by the IQTL through inspection and 
supervision.  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 59 - 
 
  209.  Responding to a question on implementing regulations relating to non -compliance , 
the representative of Timor -Leste informed that the CVO and the NPPO had t he authority to notify 
non-compliance. While the DGQB  worked in coordination  with the relevant Directorates  to conduct 
inspections on the quality of produ cts, their results w ould be submitted  to the  CVO and the  NPPO 
for further action . This process w ould be applied gradually with the assistance of related experts to 
ensure its full compliance  with the SPS Agreement . 
210.  A Member  also requested the representative of Timor -Leste to describe the coordination 
among the AIFAESA, the CVO and the NPPO, including  on the SPS enquiry point , and to  identify any 
proposed additional areas of coordination between the C VO and the NPPO , apart from those 
described for coordination through AIFAESA in Article s 18 and 19 of Decree- Laws Nos. 36/2023 and 
41/2023, respectively . The representative of Timor -Leste clarified that the  CVO and the NPPO  
coordinate d directly within the Ministry of Agriculture, Livestock, Fisheries and Forestry . They worked 
in coordination with AIFAESA to conduct inspections for products exceeding their date of expiry for 
the purpose of protecting human, animal, and plant health. Meanwhile, the DGQB exercise d its role 
of controlling  every product entering at the border under the incubation process depending on the 
sample result at the  laboratory.  Outside of the areas of coordination through AIFAESA, additional 
areas of coordination were  defined as follows : 
• Ministry of Health: all medicine for animals should have prior authorization from the Ministry 
of Health ; 
• Ministry of Tourism, Commerce and Industry (MCI): MCI w ould provide the rules of origin 
certificate for products to be exported in relation to animal and plant products ; 
• Registry Service and Business Verification (SERVE): all commercial activities, including importing and exporting, should obtain business licensing authorization from SERVE, where the licen ce should already list out export/import activities . This document w ould be required 
for inspection by the Customs Authority ; 
• Agency for Export Promotion and Investment (TradeInvest): responsible authorities w ould 
also coordinate with TradeInvest on matters related to investment certificates ; 
• Chamber of Commerce of Timor -Leste (CCI -TL): would be  obliged to follow the rules set by 
the CVO and NPPO on the procedures for export and import of animal and animal products , 
and plant and plant products.  
211.  With regards to the SPS enquiry point , his Government had established a single Contact Point 
for Information ("enquiry point") that was currently based in the Ministry of Agriculture, Livestock, 
Fisheries and Forestry , with the below  contact points :  
a) Chief Veterinary Officer (CVO):  
Name:  Dr Joanita Bendita da Costa Jong 
Position:  National Director of Veterinary/ OIE Permanent Delegate , Ministry of 
Agriculture and Fisheries  
Address:   
Phone:  Presidente Nicolao Lobato, No 5 Comoro – Dili, Timor -Leste  
+670  7754 6394 
E-mail address:  katitadog_2001@yahoo.com, lihirika@gmail.com   WT/ACC/SPEC/TLS/5/Rev.3  
 
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  b) National Plant Protection Officer (NPPO) :  
 
Name:  Mr Americo Alves Brito  
Position:  Chief of Department for Plant Protection, Department of Plant Protection for 
Agriculture  and Horticulture, National Directorate of Agriculture and 
Horticulture, Ministry of Agriculture and Fisheries  
Address:  
Phone:  Presidente Nicolao Lobato, No 5 Comoro – Dili, Timor -Leste  
+670 7766 5056  
E-mail: bamerico@hotmail.com, americoalvesbrito@yahoo.com  
The CVO maintain ed a separate WOAH contact point, while the NPPO would maintain an IPPC contact 
point once Timor -Leste becomes a contracting party to the IPPC . For other SPS measures, such as 
on food safety, the designated enquiry points coordinate d with the Ministry of Health, the AIFAESA 
and the Institute  of Quality  of Timor -Leste (IQTL) to facilitate their input on the subject matter . 
212.  He added that the authorities responsible for making notification s to the WTO and ensuring 
transparency obligations would be in the DGQB . According to Article 10(1)(x) of Decree -Law 
No. 41/2023 and to Article 9(u) of Decree -Law No. 36/2023, the DGCB , in coordination with the 
relevant national directorates and entities of the Ministry of Agriculture, Livestock, Fisheries and 
Forestry, was responsible for the submission  of all international compulsory notifications to WOAH 
and other international partners related to Animal Health and Quarantine, as well as all notifications related to Plant Health and Quarantine , including the notifications in the context of the WTO.  
213.  A Member further enquired about the transparency requirements in place in Timor -Leste, 
including with respect to publishing draft regulations  related to SPS , solicit ing comments from 
interested parties, and tak ing those comments into account before publishin g the final regulation s. 
The representative of Timor -Leste responded that the Government was yet to develop any draft 
regulations on such transparency requirements . However, considering Timor -Leste 's commitment to 
harmonize its framework with the international standards under Codex, the WOAH  and the IPPC, it 
would ensure that , regarding any draft regulations,  the relevant partners would be consulted with 
at an early stage for comments before publishing and adopting such regulations.  Further, he 
informed that while the  Government still applied a manual system in publishing the lists of goods 
subject to veterinary  and phytosanitary control, including those that required import permits, 
veterinary  and phytosanitary certificates or any other documents, it was committed to adopting an 
online platform to publish the above lists in the future.  
214.  A Member also requested the representative of Timor -Leste to explain where the conditions 
to import animals and animal products and  plant and plant p roducts would  be laid down. 
The representative of Timor -Leste informed that t hese import requirements  would be laid down in a 
Ministerial Order. Such  an Order would also elaborate on the  derivative products. He  confirmed that 
these requirements  would be consistent with the WOAH and IPPC standards.  The draft Order has 
been provided to the Working Party.  
215.  Further, a Member underlined that, i n accordance with the IPPC, it was the responsibility of 
the NPPO of the exporting party to ensure that the products compl ied with the requirements of 
the importing party.  Similarly, veterinary inspection of goods should be the responsibility of 
the veterinary authorities of the exporting country.  A Member asked the representative of  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Timor -Leste to clarify if and where pre -clearance inspections w ould be requested. The representative 
of Timor -Leste recognized the matter raised by a Member. He informed that,  to be precautious of 
risks that could  be imposed from a  disease  outbreak from any imported country, Timor -Leste 
recognize d the importance of preventive measures. In practice, Timor -Leste , through the  CVO or 
NPPO , required pre- clearance inspections to be c onducted  upon request or only when there wa s a 
disease outbreak in an importing country, where pre- inspection w ould be conducted by the 
competent authority.  At the same time, the Government was committed to replace the current 
system with Members' assistan ce in providing basic facilities to prevent disease outbreak in the 
country , to be in accordance with the procedures set under the WOAH and the  IPPC.  Further, the 
representative of Timor -Leste confirmed that in the event a n exporting country had a localize d 
outbreak of a  disease or pest , the Government of  Timor -Leste would allow for regionalization of 
imports from areas shown to be free from the disease/pest, provided that the imported goods were 
properly certified according to the standards set under the W OAH and the IPPC. If an exporting 
country had regional isolation methods in place to ensure that these types of outbreaks were 
centralized, controlled and mitigated, the Government of Timor -Leste would allow imports of 
products from such exporting country, including seeds, with appropriate sanitary/phytosanitary 
documentation.  
216.  Referring to Timor -Leste's import prohibitions listed in paragraph 196 , a Member a sked if 
Timor -Leste would take a Member's level of prevalence of specific diseases or pests into 
consideration and, if so, asked to describe the process for determining how Timor -Leste will evaluate 
exporting Members' pest or disease- free areas and areas o f low pest or disease prevalence. In 
response, the representative of Timor -Leste further clarified that his Government intended to  
consider an exporting Member 's plant pest status and plant pest prevalence in assessing the 
phytosanitary risks of imported products in accordance with international plant health standards for 
pest risk analysis (ISPM 2 – Framework for Pest Risk analysis, ISPM 11 – Pest Risk Analysis for 
Quarantine Pests, ISPM 21 – Pest risk Analysis for Regulated non -quarantine pests). It also intended 
to adopt and follow international standards to assess exporting Members’ animal disease- free areas 
and areas of low animal disease prevalence. Among others, Timor -Leste planned to adopt the 
relevant dispositions of the  WOAH Terrestrial Code , and to comply with the international plant health 
standards to assess exporting Members’ plant pest free areas (ISPM 4 – Requirements for the 
establishment of pest free areas), areas of low pest prevalence (ISPM 22 – Requirements for the 
establishment of areas of low pest prevalence), and plant pest status (ISPM 8 – Determination of 
pest status in an area, particularly section 5, exchange of pest status information between NPPO’s).  
Timor -Leste was yet to elaborate on measures to make regionalization determinations  within the 
requested transition period for the implementation of the SPS Agreement . 
217.  Responding to a request from a Member to elaborate on the pre- clearance inspection process, 
the representative of Timor -Leste added that, in all cases, an importer had to obtain an  import 
permit prior to the pre- clearance inspection. The process included c onducting a thorough review of 
the imported goods based on  the importer 's authorizations.  The Government ha d built a standard 
laboratory to conduct basic tests in the country . However, should a test require a complex procedure, 
a sample w ould be sent to th e designated laboratory abroad or any location that has been accredited WT/ACC/SPEC/TLS/5/Rev.3  
 
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  by WOAH/IPPC  standard s to ensure that no risks w ould be posed by the products . The prescribed 
testing procedures, including the process for sampling and the appeals process for disputi ng a claim, 
included: (i) quarantine measures for inspections and detainment; (ii) treatment, installation and 
isolation processes (between 14 to 21 days);  (iii) requisition process es (measures to be taken at the 
port); and (iv) should any products be identified to have contained any diseases that pose risks to 
human, animal or plant health, tak ing the necessary measures to reship or burn the identified 
products.  The prescribed samplin g procedures and methodologies, including the process for 
sampling and the appeals process for disputing claim s, follow ed the guidelines set under the 
WOAH/ IPPC.  He added that, w hile Timor -Leste was yet to join the ISO, the Government would put 
the necessa ry efforts to promote coordination and collaboration with the relevant bodies to be 
aligned and compliant with the ISO standards, including standards detailed in ISO 17025: "Testing 
and Calibration Laboratories ". Nevertheless, to be ISO -compliant, the Gove rnment still required 
further assistance in developing the necessary facilities, including an  internationally accredited 
laboratory.  
218.  He added that, in the implementation of  Articles 46 and 48 of  Decree -Laws Nos. 36/2023 and 
41/2023, respectively,  the following quarantine measures could be taken: (i) inspection; 
(ii) isolation; (iii) observation; (iv) treatment; (v) investigation ; (vi) testing ; (vii) sei zure; or, 
(viii) disposal . Any incident that affected or had repercussions on health control had to be 
immediately reported to the  relevant  Director ates who would  decide on the measures to be taken.  
219.  A Member asked to confirm if post -entry treatment for horticultural imports was  an option 
included in "phytosanitary treatment in order to remove the risk"  under Decree -Law No.  36/2023. 
The representative of Timor -Leste confirmed that this was  the case . 
220.  A Member stressed that while, according to Decree- Law No. 41/2023,  the DGQB regulated  
the use of coccidiostats, antibiotics, growth promoting  hormones and other medication and 
therapeutical substance in feed, the use of antibiotic s in animal production (including in particular 
the use as growth promoters ), was an important factor in  the development of anti- microbial 
resistance. This Member  invite d the Government of Timor -Leste to ban the use of antibiotic s for 
growth promotion or develop a plan for phasing out such use.  The representative of Timor -Leste 
took note of the Member 's proposal and clarified that, in practice, the Government of Timor -Leste , 
through the DGQB , had been exercising its competence to ban the importation of antibiotic and 
growth promotion substances in accordance with the WOAH  standard.  He also clarified that the 
Decree- Law envisaged a prohibition of non-therapeutic uses of antimicrobials . This criterion was 
based on C odex, which recommend ed that "medically important antimicrobials should only not be 
used for growth promotion unless potential ris ks to human health have been evaluated". Thus, his  
Government ha d decided to prohibit non -therapeutic uses of antimicrobials under all circumstances 
due to the current lack of national capacities to evaluate the potential risks . Regarding the scope of 
import products subjected to this prohibition and the scientific justification for this  measure , he 
further explained that , in line with  Decree- Laws Nos. 36/2023 and  41/2023, the list/scope of import WT/ACC/SPEC/TLS/5/Rev.3  
 
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  products that would be prohibited, including antibiotic and growth promotion substances, was to be 
developed and approved by a Ministerial Order after a scientific study which was yet to be conducted.  
221.  A Member enquired about the maximum residue level (MRL) regime applied in Timor -Leste , 
as well as its intention to adopt Codex MRLs and the deferral pathway for imports if there was no 
Codex MRL. The representative of Timor -Leste confirmed that, as a member of Codex Alimentarius 
since March 2017, Timor -Leste was obliged to follow the guide lines set under Codex Alimentarius 
MRLs. Having said that, the Government  was yet to develop specific rules regarding MRLs . 
It remain ed committed to adopt the Codex Alimentarius MRLs in the future , once Decree- Law No. 
41/2023 was effectively implemented. In this light, Timor -Leste still adopted imported tolerance and 
the deferral pathway for import procedures in accordance with the rules set under the IPPC and the 
general rules for import procedures in the country, while recognizing  the inspection and certi fication 
systems as fundamentally important and widely used means of food control systems . He added that 
his Government was planning to establish a list of MRLs for veterinary drugs by 2024. More 
specifically, his Government was in the process of finalising a Decree -Law on Pesticides which would 
be in line with the recommendations from the Codex Alimentarius  Commission, for consideration by 
the Council of Ministers by the end of  2023. This draft  Decree- Law had been submitted for review 
by the Working Party. Following the approval and entry into force of this Decree -Law, the list of 
MRLs would be developed.  
222.  Responding to a question on the Official Program for the Control of Pesticide Residues in 
Products of Plant Origin , as provided in Article 16(m) of Decree- Law No. 26/2016, the representative 
of Timor -Leste informed that his Government had drafted the Law on Pesticides with the  technical 
assistance of the FAO. This draft Law would list out guidelines for authorities that have 
the competence over the application of pesticides. Once this Law was approved, the authorities 
under the Ministry of Agriculture , Livest ock, Fisheries and Forestry w ould work in coordination with 
the AIFAESA to regulate the guidelines established by the L aw.  
223.  A Member also asked  when the Government of Timor -Leste would publish its lists  of regulated 
pests  and notifiable diseases . The representative of Timor -Leste responded that such list s would be 
published as soon as appropriate facilities were in place. The Government was open to the  necessary 
assistance from Members to accelerate Timor -Leste 's compliance to adopt th ese system s. 
224.  A Member also noted that "living modified organisms" were included within the regulatory 
scope of the NPPO and asked if the Government of Timor -Leste would accept the validity of 
regulatory authorities' risk assessments and Codex guidelines as sufficient for  the import of 
agricultural biotechnology products. The representative of Timor -Leste confirmed that the 
Government was committed to push for the necessary reforms to accept the validity of regulatory 
authorities ' risk assessmen ts and Codex guidelines as sufficient for the import of agricultural 
biotechnology products.  
225.  A Member also noted Article 27(2) of the Framework Law on Environment (Decree- Law 
No. 26/2012 of 4 July 2012) stating measures would be taken to prevent and minimi ze risks to WT/ACC/SPEC/TLS/5/Rev.3  
 
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  biological diversity and human health from genetically modified living organisms  (GMOs). 
The Member asked to clarify how such risks would be determined and what would be the basis for 
measuring the "threat to the  environment, national economy, or public health" as outlined in Article 
10 of Decree- Law No.  21/2003. This Member requested th at Timor -Leste ensure that any sanitary 
or phytosanitary measures to protect biological diversity and human health were based on scientific 
principles a nd were least trade restrictive as outlined in Articles 2 and 5 of the SPS Agreement.  
226.  The representative of Timor -Leste responded that t he Government had approved Decree- Law 
No. 6/2020 of 6 February 2020 on the " Legal Regime for the Protection  and Conserv ation 
of Biodiversity " applicable to the conservation of biodiversity , the sustainable use of its components 
and the fair and equitable sharing of the benefits generated from genetic resources, as fundamental 
bases for family subsistence, food security and the well -being and health of current and future 
generation s. Article 34 of this Decree -Law state d that the preservation and conservation of habitats 
and critical habitats necessary to ensure that an organism or population of a species could  survive 
and thr ive was carried out within the national system of protected areas, without prejudice to the 
possibility of adopting specific ex situ measures.  Article 37 identified  the measures of risks for the 
importation of exotic species as follows:  
• Exotic species that pose d a threat to ecosystems, habitats or species we re identified in 
a national list that contain ed: 
• Invasive alien species whose import or circulation in the country wa s prohibited;  
• Non-invasive exotic species whose import or circulation had to be regulated.  
• The national list was prepared by the G overnment member responsible for nature conservation 
and biodiversity, after consultation with the G overnmental entity responsible for the 
environment, the Biodiversity Advisory Committee, quarantine services and relevant research 
institutions, taking into account the available information ; 
• The national list of exotic species wa s approved by a Government Resolution ; 
• Any person, whether natural or legal, could  submit a request for inclusion or removal of a 
species from the national list of exotic species to the Government entity responsible for nature 
and biodiversity conservation.  
The information  on the invasive species in Timor -Leste is contained in Annex 17. The  representative 
of Timor -Leste confirmed that his Government would ensure that its sanitary or phytosanitary 
measures to protect biological diversity and human health were based on scientific principles and 
were least trade restrictive as outlined in Articles 2 and 5 of the SPS Agreement.  
227.  A Member further asked about the provisions related to GMOs in Article 41 of Law No. 6/2020, 
and how Timor -Leste intended to ensure that i ts laws and policies we re consistent with relevant 
WTO rules with regard to the science - and risk -based regulation of products of agricultural 
biotechnology . The representative of Timor -Leste said that his Government was  committed to ensure 
that its laws a nd policies were consistent with relevant WTO Agreements in this area, namely the 
SPS and the TRIPS Agreements. According to Article 41 of Decree- Law No. 6/2020, the regulation  
of GMOs , including products of agricultural biotechnology, w as subject to speci fic legislation  which 
was yet to be developed, within the requested transition period for the implementation of the WTO WT/ACC/SPEC/TLS/5/Rev.3  
 
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  SPS Agreement . Timor -Leste w ould ensure that the respective legislation, when developed, w ould 
be consistent with its  WTO commitments.  
228.  A Member also requested the Government of Timor -Leste to notify the WTO, in accordance 
with its obligations under Annex B of the SPS Agreement and Article 2.9 of the TBT  Agreement, 
when the regulatory changes may have a significant effect  on trade with other Members or be of 
particular interest to parties in other Member countries. The representative of Timor -Leste confirmed 
that his Government would notify the WTO accordingly.   
229.  The representative of Timor -Leste requested that the Working Party grant a transition period 
from the date of Timor -Leste 's accession until 1 January  2028 for the  implementation  of the WTO 
SPS Agreement, as outlined in the Action Plan for the Implementation of the WTO SPS Agreement 
reproduced in  Annex 18 of this Report. This transition period would allow Timor -Leste  to fully 
implement the obligations under the Agreement. He stressed the necessity for his Government to 
receive adequate technical and financial assistance to ensure the proper implementation of the WTO 
SPS Agreement.  
230.  Members highlighted the efforts made by Timor -Leste  in reviewing its SPS legislation and 
invited Timor -Leste  to continue with its efforts to bring regulations and legislation progressively in 
compliance with WTO rules. They took note of Timor -Leste 's request for a transition period until 
1 January  2028 for full implementation of the WTO SPS Agreement and encouraged Timor -Leste  to 
take advantage of the technical  assistance available in the SPS area.  
231.  The representative of Timor -Leste  confirmed that Timor -Leste  would progressively implement 
the W TO Agreement on the Application of Sanitary and Phytosanitary Measures in accordance with 
the Action Plan provided in  Annex 18. He  further confirmed that during the transition pe riod, existing 
measures would be applied on a non -discriminatory basis, i.e., providing national treatment and 
MFN treatment to all imports. Measures in place at the time of accession and already consistent with the provisions of the WTO Agreement on the A pplication of Sanitary and Phytosanitary Measures, 
would not be subject to transition. Timor -Leste  would ensure that any changes made in its laws, 
regulations and practice during the transition period would not result in a lesser degree of 
consistency with the provisions of the WTO Agreement on the Application of Sanitary and 
Phytosanitary Measures, th an existed at the date of accession. Full implementation of the 
WTO Agreement on the Application of Sanitary and Phytosanitary Measures would start from 
1 January  2028 without recourse to any further transition period. The representative of Timor -Leste 
further confirmed that his Government  would consult with Members upon request if any Member 
deemed that any measures applied during the transition  period affected their trade negatively. 
The Working Party took note of these commitments.  
- Trade-related invest ment measures  
232.  The representative of Timor -Leste informed that his Government did  not have  any 
trade -related investment measures in place.  In the future, should such measures be introduced, WT/ACC/SPEC/TLS/5/Rev.3  
 
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  they would be in compliance with the WTO Agreement on Trade- Related  Investment Measures 
(TRIMs  Agreement) , as the Government wa s willing to fully comply with WTO rules .  
233.  The representative of Timor -Leste  said that his Government  would not maintain any measures 
inconsistent with the WTO Agreement  on Trade -Related Investment Measures  and would apply the 
WTO Agreement  on Trade -Related Investment Measures  from the date of accession without recourse 
to any transition period. The Working Party took note of this commitment.  
- Free zones, special economic zones  
234.  The representative of Timor -Leste informed that the Customs Code authorized  
the Gover nment of Timor -Leste to approve free zones benefiting from customs exemption regimes. 
However, there we re currently no free zones within  the territory of Timor -Leste.   
235.   Through Law No. 3/2014 of 18 June 2014,  the National Parliament had approved the creation 
of the Oe -Cusse Ambeno Special Administrative Region (SAR) and the Special Economic Zone for 
Social Market Economy (ZEESM)  whose territory include d the enclave of O e-Cusse and the  island of 
Ataúro . ZEESM ha d made considerable progress since 2014, establishing an effective administrative 
and regulatory framework as a SEZ, which had  fostered infrastructure development 
(e.g. telecommunications, roads, bridges, airport, port, water and sanitation systems, schools , 
health clinics, electrical power grid, etc. ) that nurture d the enabling environment for regional 
economic development and diversification.  The Statute of the Oe -Cusse Ambeno Special 
Administrative Region , approved by Decree- Law No. 5/2015 of 22 January 2015 , had mandate d that 
a Free Trade Zone and an Industrial Customs Free Zone be created within the Region. The specific 
rules on the Free Trade Zone and Industrial Customs Free Zone we re yet to be enacted.   
236.  In addition, Article 10 of the draft Export Promo tion Law provided for  the right of establishment 
in a special economic zone. An exporting company could  establish itself in special economic zones, 
namely in export processing zones or warehouses and in free zones .  
237.  Responding to  a Member's question on the process of development of this special economic 
zone and the types of incentives provided, the representative of Timor -Leste further informed that 
the Authority of SEZ was empowered to enact public policy measures, to be enforced within its own 
territorial limits, to provide exempt ion from the payment of customs duties and respect for the 
principle of the social market economy as a paradigm of economic growth by attracting investment, 
technology and the establishment of companies, both domestic and foreign. To date , this was only  
applicable to goods imported to implement SAR's projects and programs, in acco rdance with 
Article  38.3 of Law  No. 3/2014. T wo public projects , both funded by the Special Administrative 
Region Development Fund , had benefited from customs exemption, namely: (i)  the construction of 
a Clinic and acquisition of two mobile clinics and (ii) a Hotel. Tax exemptions were granted to 
investors in the special economic zone Oe -Cusse Ambeno and Ataúro for a period up to 10 years 
(see Table 1 of section " Investment Regime").  A more detailed package of incentives wa s yet to be 
determined by the Authority, in compliance with  WTO rules.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  238.  The representative of Timor -Leste further updated that his Government had adopted 
Decree- Law No. 44/2022 of 8 June 2022 on "Legal Framework for Industrial Parks"  with the objective 
to regulate the establishment, management and functions of the industrial park s. This Decree- Law 
had been provided to the Working Party.  The new regime determined the  administrative procedures 
of the industrial park s, including the infrastructure required for  establish ment in an industrial park , 
and the management of the industrial park s, whereby each industrial park had to  be managed by a 
commercial entity. The commercial entity had to  have a capital greater than US $ 500,000 to manage 
the industrial park . The Decree -Law, however, d id not cover the ZEESM/the Special Administrative 
Region of Oe- Cusse, as it was  governed by Decree-Law No. 5/2015.  
239.  The representative of Timor -Leste  confirmed that, from the date of accession, free zones and 
special economic zones would be established, maintained and administered in full conformity with 
the provisions of the WTO Agreement, includi ng the WTO Agreement on Subsidies and Countervailing 
Measures and the WTO Agreement on Trade- Related Investment Measures, and that Timor -Leste 
would ensure enforcement of its WTO obligations in those zones. He further confirmed that the right 
of firms to r egister and operate in these zones would not be subject to export performance, trade 
balancing, or local content requirements. In addition, the representative of Timor -Leste  confirmed 
that from the date of accession , goods imported into the free trade zones  and goods produced in 
any free trade zones or areas under tax and tariff provisions that exempt imports and imported inputs from tariffs and certain taxes , would be subject to normal customs formalities when entering 
the rest of the territory of Timor -Leste, including the application of tariffs and taxes. The  Working 
Party took note of these commitments.  
- Government  procurement   
240.  There were no major restrictions or limitations on foreign entities ' (natural or legal persons) 
participation in Timor -Leste 's procurement procedures. Government  procurement was governed by 
the Timor -Leste Public Procurement Framework, approved by Decree- Law No. 10/2005 of 
21 November  2005,  as last amended by Decree- Law No . 5/2021 of 23 April 2021.  
241.  With respect to the type of Procurement Procedure , he informed that  there were no major 
restrictions or limitations on foreign entities ' (natural or legal persons) participation in this 
procedure. A s a general rule, irrespective of the acquisition ( i.e. goods, services or works),  a national  
open tender procedure had to  be followed if the expense to be incurred was in an amou nt in excess 
of US$ 100,000.  An international open tender  procedure  had to  be followed in situations that pertain 
to: (i) public works in excess of US$  1,000,000; (ii) the purchase of goods and acquisition of 
non-consulting services in excess of US$  250,000; or, (iii) th e acquisition of services or consultancy 
contracts in excess of US$  200,000.  
242.  In the national open tender procedure, the participation of bidders wa s limited to Timor ese 
nationals and/or  companies set up in Timor -Leste whose majority share of capital was held by 
Timor -Leste citizens (at least 51%) or in which said Timor ese individuals and/or companies could be 
regarded as preferential bidders.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  243.  In addition, by Decree- Law No. 2/2010 of 18 February 2010 on "Special Procurement for 
Construction W ork Up to US$ 250,000" , the Government  had approved a special procurement 
procedure for the award of p ublic works in the  amount of up to US$  250,000, in which only local 
companies based in the municipality  could  apply.  This Decree- Law aimed at supporting private sector 
development at the sub- district level and encourage community participation in infrastructure 
development in their area. Another limitation to the general principle of open and transparent 
competition could  result from the adoptio n of direct award procedures. However, in these cases , 
both national and foreign entities could  benefit from this type of procurement. The  Public 
Procurement Framework  listed the rules and procedures that allow ed for this type of procedure to 
be adopted, h owever, this wa s an exception al situation that require d a clear and detailed 
justification. Such situation s were, among others: (i) emergency case s following an unforeseen event 
which endanger ed public health and safety; (ii) the absence of  tenders or the absence of  tenders 
which met the criteria laid down in the  invitation to tender, or if the candidates d id not meet the 
requirements for participation; (iii) when goods and services c ould only be  supplied by a specific 
entity and a reasonable or substitute  alternative  did not exist on the market ; (iv) for the protection 
of patents, copyrights or other exclusive rights or intellectual property rights.  The adoption of a 
direct award procedure c ould also be made on the basis of material criteria, in which case the choice 
was independent of the value of the respective contract. The adoption of a direct award procedure 
that had not been  duly grounded and justified according to the Decree- Law could  be viewed as an 
administrative offence, pursuant to Article 3  of Decree- Law No. 11/2005 of 8 November 2005 on 
"Legal Regime for Public Contract" , which set forth the Legal Framework on Administrative Offences 
to the  Public Procurement Legal Framework and stated that any action or omission which was 
contrary to the rules established in the Timor -Leste Public Procurement Framework  constitut ed an 
administrative  offence.  
244.  Another  situation that had been  regarded as a limitation to the general principle of open  and 
transparent competition result ed from the existence of an internal instruction from the Cabinet of 
the Prime -Minister ( Circular Note No. 003/GPM /III/2009)  that had authorized the Government to  
preferentially purchase Mitsubishi or Toyota vehicles, exc ept when there was a specific reason that 
justifie d the purchase of state vehicles of other brands . This had been  a transitory measure justified 
by the availability of spare -parts and maintenance services, which had been revoked. Responding 
to a Member's question on the existence of any other specific goods/services/sectors for which the 
Government was expected to buy specific brands, the representative of Timor -Leste confirmed that 
there were none.  
245.  He added that, a part from the se exceptions, the Government  of Timor -Leste did  not limit or 
restrict the  participation of foreign nationals or entities in public tender procedures.  
246.  Responding to a question from a Member on the procedure for procurements above the 
US$ 100,000 threshold b ut below the international open tender thresholds, he informed that this 
threshold had been introduced by Decree- Law No. 24/2008 of 23 July 2008. Public tenders were 
mandatory in procurements equal to or over US$ 100,000 and not reserved for local companies. WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Whenever purchasing goods and services and executing public works, all public institutions had to 
follow principles such as public interest, competition, equal treatment, legality, transparency, and 
impartiality, which are set by Decree -Law No. 10/2005.   
247.  Requested to provide information on the number and value of tenders above the US $ 100,000 
threshold or other thresholds , the representative of Timor -Leste responded with an  invitation to 
consult the eProcurement Portal at: https://www.mof.gov.tl/government-
procurement/eprocurement -portal/?lang=en  wh ereby the data and any other relevant information 
on Tim or-Leste Public Procurement we re made available . In addition, since 2015, the Public 
Procurement Commission also maintained  a procurement portal ( www.cna.gov.tl www.cna.gov.tl ) 
which present ed information on current tenders and intent to award, whereby it announce d 
invitation s for bids, winning bidder s and the results of the evaluations undertaken. This website also 
kept records of past public tenders.  
248.  A Member also requested to confirm that foreign -based bidders were treated on a fair a nd 
equal basis with domestic bidders in bidding processes above US $ 100,000. In response, the 
representative of Timor -Leste referred to Article 4 (Legal and Equality Principles)  of Decree- Law 
No. 10/2005 which provided that access and participation conditions were equal to all interested 
parties. Any discrimination of the bidders was  prohibited. Accordingly, he confirmed that 
foreign -based bidders we re treated on a fair and equal basis.  
249.  A Member asked for a clarification regarding the award procedure, including any requirements 
and limitations surrounding the use of the direct award procedure for foreign- based bidders  and any 
available guidelines to help provide foreign- based bidders with advice on the use of the direct award 
procedure. The representative of Timor -Leste informed that this procedure was exceptional. Articles 
92 to 94 of Decree- Law No. 10/2005 provided the requirements and limitations surrounding the use 
of the direct award procedure for all bidders, as described in paragraph 243. Those were the 
applicable guidelines foreign -based bidders c ould refer to with respect to th e direct award procedure .  
250.  In response to a Member's question, the representative of Timor -Leste also elaborated on 
the amendment introduced by Decree- Law No. 30/2019 which included a requirement for all 
international public tenders to be publicized on at least two electronic platforms internationally used for th is purpose, as well as in a newspaper with national circulation, so that the announcement for 
the opening of the tender would reach  the broadest number of potential competitors  (amendment 
to Article 61) . He added that the latest, seventh amendment effected by Decree -Law No. 5/2021 of 
23 April 2021 introduced an exceptional regime to facilitate government procurement in response to the  emergency situation and humanitarian concerns that the country faced as a result of the 
tropical flood which had occurred in April 2021.  
251.  The representative of Timor -Leste added that, Timor -Leste , as an LDC, remain ed committed 
to alignment and compliance with the WTO rules, commensurate to Timor -Leste's development 
needs, according to Article V of the WTO Agreement on Government Procurement and aiming for a modern Public Procurement Framework . In this exercise, technical assistance was  provided WT/ACC/SPEC/TLS/5/Rev.3  
 
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  whereby the public procurement system wa s subject to an evaluation conducted with the support of 
the World Bank  (WB) and the Asian Development Bank  (ADB) , according to the Methodology for 
Assessing  Procurement Systems (MAPS). The report resulting from this assessment would be 
submitted to the Government, with the pertinent recommendations , in the course of 2023.  
252.  He further informed about the enactment of t he new Legal Regime for Procurement, P ublic 
Contracts and the Respective Infractions (Decree -Law No. 4/2022 of 23 March 2022) . The Decree-
Law, which had enter ed into force on 1 January 2023, intended to create a simpler  and more 
transparent  procurement regime. The changes we re as follow s: (i) the integration of the legal 
regimes of supply, of public contracts and of t heir infractions in a single Decree- Law; (ii) the 
simplification of procedures, with the categories of procedures going from seven to three ; (iii) better  
systematization and description of each supply phase; (iv)  the strengthening of planning processes; 
(v) greater transparency  and the strengthening of the procurement portal; and (vi)  the 
strengthening  of the powers of the National Procurement Commission. The Decree- Law has been 
provided to the Working Party for review.  
253.  Apart from the special regime contained in Decree -Law No. 2/2010 of 18 February 2010 on 
"Special Procurement for Construction Work Up to US$250,00 0", which remains in force, the three 
categories of procedure established in Decree- Law No. 4/2022 are:  (i) pu blic tender (with no 
distinction between national and international public tender); (ii) procedure soliciting tenders on 
quotations (a minimum of three quotations); and (iii) direct award procedure. Under the Decree- Law, 
public tenders we re mandatory in pr ocurements equal to or over US$  100,000 (with very few 
exceptions as in the previous regime,  where soliciting tenders on quotations and direct award 
procedures were allowed). In procurements under US$ 100,000,  public tenders or soliciting tenders 
on quotations were allowed (the direct award procedure was possible  in very few cases , as in the 
previous regime). In procurements of less than US$ 10,000,  all three categories were allowed.  
254.  For procurements under US$ 100,000 wh ich contributed  to the promotion and development 
of the national economy, the contracting authority c ould limit the participation of bidders to Timor ese 
individuals and/or companies set up in Timor -Leste and whose majority of capital was held by 
Timorese citizens (more than 50%). This limitation could also be included in procurements equal to or over US$ 100,000 if the object of the procurement was related to sectors, goods or administrative areas qualified by Government Resolution as strategic and/or of special protectio n. In procurements 
over US$ 1,000,000, the contracting authority could include,  as a condition , that the proposal 
contributed to economic and social development by transferring technology or know -how to workers 
and local companies, by including a minimum a mount of goods and services to be acquired in the 
local or national market, or by including a minimum number of national workers to be hired.   
255.  The representative of Timor -Leste confirmed Timor -Leste's willingness to accede to the 
WTO Agreement on Governmen t Procurement. Timor -Leste would become an observer to the 
Agreement upon accession, and submit an application for membership with a coverage offer within 
one year following  accession to the WTO. The Working Party took note of these commitments.   WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - T ransit  
256.  Under Timor -Leste 's Customs Code, goods in transit had to  undergo control and customs 
inspection . Their transportation took place under a transit declaration, issued in triplicate. Originals 
of transit declarations had to  be filed at the customs office of transhipment  and the respective 
duplicates and triplicates had to  be handed over by the c arrier to the customs office of  destination.  
There were no  fees applicable to goods in transit.  
- Agricultural policies  
257.  The representative of Timor -Leste informed that agriculture was a critical sector for 
Timor -Leste's development. The majority of households in Timor -Leste were rural and  agricultural. 
Most workers we re engaged in the agricultural sector. Given the low level of agricultural output, 
Timor -Leste ha d a large  agricultural sector with low productivity, operating at close to subsistence 
level. The sole significant export crop was coffee, which was grown in smallholdings and provided 
income for households accounting for approximately one quarter of the population . In the medium -
term, the Government envisaged that  exports w ould focus on agricultural cash crops including 
coffee, spices and other cash products  for niche  markets . Improving farm -level productivity and 
domestic transport infrastructure and reducing ship ping costs w ould be important factors in the 
growth of agricultural cash crops. In addition, in  the long -term, Timor -Leste ha d considerable 
potential to develop profitable commercial forestry and fishing industr ies. 
(a) Imports  
258.  The representative of Timor -Leste informed that t here were no specific policies affecting 
imports of agricultural products. Imported agricultural goods we re only subject to the rules contained 
in Decree -Law No. 36/2023 of 31 May 2023 on "Plant Health and Quarantine" and Decree- Law No . 
41/2023 of 31 May 2023 on "Animal Health and Quarantine"  requiring sanitary and phytosanitary 
import permits , as mentioned  in the section on "Sanitary and phytosanitary measures" .  
(b) Exports  
259.  There were no export prohibitions or restrictions for agriculture products. This policy was 
expected to be maintained in the future as part of Timor -Leste's investment policy.  
260.  There were no export subsidy measures in place. There we re no laws, regulations , policies or 
programs providing for export credit, export credit guarantees, or insurance programs .  
261.  The representative of Timor -Leste  confirmed that Timor -Leste  would bind agricultural export 
subsidies at zero from the date of accession.  The Working Party took note of this commitment.  
(c) I nternal policies  
262.  The representative of Timor -Leste provided information on domestic support and export 
subsidies in agriculture for the 2019- 2021 period in document WT/ACC/SPEC/TLS/1 /Rev.2 . Asked 
by a Member, he clarified that the development of a livestock programme wa s part of the activities WT/ACC/SPEC/TLS/5/Rev.3  
 
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  listed in Supporting Table DS:1 (2(a) –  "Building foundation for smart agriculture development, 
inclusive natural resource management monitoring and surveillance scheme; evidence- based policy 
formulation and establishment of regulatory framework for natural resources management").  In 
addition, responding to a nother  request from a Member, he provided the information on  the total 
value of agricultural production in Timor -Leste, for the period 2013- 2021, in Table 5.  
Table 5. Total value of agricultural production in Timor -Leste, 2013-2021.  
In US$  
Year Value  
2013 408,430,000  
2014 444,318,000  
2015 496,159,000  
2016 443,338,000  
2017 411,966,000  
2018 455,260,000  
2019 522,675,000  
2020 547,868,000  
2021 710,227,000  
Source:  FAOSTAT.  
263.  A Member noted that the Ministry of Agriculture and Fisheries had been  responsible for the 
design, implementation, coordination, and evaluation of policy approved by the Council of Ministers 
in the  area of agriculture, forestry, fisheries, and livestock. The Ministry could  propose policy and 
draft legislation/regulations to establish technical support centers for farme rs; manage technical and 
agricultural education; promote agricultural research and optimization of agricultural land; control 
land use for agricultural production purposes; promote and monitor animal health; promote 
the agricultural and fishing industry; p romote and control food production, including seed 
production; manage the q uarantine services; promote, in coordination with the Coordinating Minister 
for Economic Affairs, rural development by implementing a cooperative system for the production and comme rcialization of agricultural production; and carry out feasibility studies for the installation 
of irrigation systems, water storage, as well as the construction of the respective facilities. A Member 
asked if such measures to support the agricultural sector ha d been established to date, and to 
provide budgetary allocations . A Member further asked if the Government of Timor -Leste planned 
to develop a new strategic plan  of the Ministry.   
264.  The representative of Ti mor-Leste responded that t he Ministry of Agriculture and Fisheries had 
operated based on the strategic plan for 2014- 2020 and its short - and medium -term strategic plans, 
which were developed in accordance with the National Strategic Development Plan of 2011 -2030.  
Referring to the impact of  the COVID -19 pandemic on the overall economic growth of the country,  
he added that the Ministry of Agriculture , Livestock, Fisheries and Forestry  would maintain the 
current strategic plan. The plan could be reviewed in fu ture, in line with the vision set under the 
National Strategic Development Plan of 2011 -2030. 
 
265.  He added that a gricultural policies had been developed according to the Agriculture Policy in 
2004, w hich had been revised in 2017, to reflect the five main priorities : (i) a sustainable increase 
in production and productivity; (ii) improving market access and value addition; (iii) improving 
the enabling environment for the agricultural sector; (iv) organizational development; and, WT/ACC/SPEC/TLS/5/Rev.3  
 
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  (v) sustainable resource use. Between 2013 and 2017, the Ministry had invested a total of over 
US$ 119 million in these priority sectors, and a  total of over US$ 60.9 million between 2018 and 
2021.  A number of outcomes ha d been achieved as a result of these budgetary allocations,  including:  
• Rehabilitation of nine main irrigation canals across the country to improve its irrigation system 
as part of its infrastructure development programme;  
• Increased rice productivity from 3.5 to 6 tons/hectare;  
• Increased seed production , particularly for rice, maize and beans;  
• Increased vaccinations and animal feeding programmes as part of the development of 
livestock programme; and  
• Development of the aquaculture industry on the South Coast of the country.  
These measures had been notifi ed to the Working Party as part of the information on domestic 
support and export subsidies in agriculture, in Table DS:1  (with Annex) . 
266.  A Member further requested detailed information about the Contingency Fund for Purchase of 
Rice. In response, the repres entative of Timor -Leste informed that his  Government  had set its food 
security objective by securing food stock of rice of around 140,000 metric tonnes per annum in 
accordance with annual domestic rice consumption. Rice wa s purchased in the national territ ory and 
from abroad , through government -to-government cooperation. In accordance with Decree -Law 
No. 26/2014 of 10 September 2014, the Coordinating Minister for Economic Affairs (MCAE), the 
Minister overseeing the National Logistic Center agency (NLC), the  Ministry of Agriculture and 
Fisheries (MAF), the Ministry of Tourism, Commerce and Industry (MTCI), and the Ministry of Finance 
issued a joint Order, based on the diagnostic study undertaken by the technical working group composed of these Ministries, with recommendations on the specific conditions and prices in 
accordance with the market trend and the yield of rice production in the country. The Government's 
market interventions are made through the National Logistic Center (NLC).  
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
1. GENERAL  
267.  The representative of Timor -Leste informed that, i n accordance with the provisions of A rticle 
165 of the Constitution , the laws and regulations in Timor -Leste appl ied insofar as they we re not 
contrary to the Constitu tion and to the principles contained therein. Accordingly,  all Indonesian 
legislation on intellectual property existing prior to the rest oration of the independence  (Title XX of 
the Indonesian Civil Code on "Intellectual Property")  remain ed formally in for ce. However , in practice 
it had not been effective, as there was no adequate institutional framework for its implementation 
(such as an Intellectual Property Registration  Agency ). He confirmed that the Government of 
Timor -Leste recognized the urgent need f or protecting intellectual property ( IP) owners while doing 
business in the country.   
268.  He added that , despite the absence of legislation regulating protection and registration of IP  
rights  in Timor -Leste, several statutes adopted by Timor -Leste address ed IP-related matters , as 
described in this section. Thus, the Constitution provide d that the State sh ould guarantee and protect WT/ACC/SPEC/TLS/5/Rev.3  
 
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  the creation, production and commercialization of literary, scientific and artistic work, including 
the legal protection of copyrights.  Section 60 of the Constitution  (Intellectual Property ) constitutes 
the legislator's obligation to produce specific legal instruments to protect th ese rights.  
269.  He added that, to date, Timor -Leste did not have an IP office for the administration and 
management of IP -related legislation.  
270.  He further informed that Timor -Leste had acceded to the World Intellectual Property 
Organization (WIPO) on 12 September 2017, following the deposit with  the Director General of 
WIPO, in Geneva, of the Instrument of Accession to the Convention Establishing the World 
Intellectual Property Organization (WIPO), signed at Stockholm on 14 July 1967, and amended on 28 September 1979. Resolution of the National P arliament of Timor -Leste No. 16/2017 of 
25 July 2017 ratified the Convention. The accession to the WIPO had opened avenues of institutional 
collaboration and partnership that would help Timor -Leste achieve compliance with the substantive 
obligations of the WIPO Convention and the international treaties and conventions on Intellectual 
Property, such as the Paris Convention for the Protection of Industrial Property (Paris Convention) 
and the Berne Convention for the Protection of Literary an d Artistic Works (Berne Convention). 
The Government of Timor -Leste and WIPO ha d signed  sign a Memorandum of Understanding (MOU)  
in November 2021, aware of the importance of having a well- functioning and balanced IP regime in 
order to promote innovation and  creativity, which are the main drivers of economic development of 
knowledge -based economies . The MOU allow ed the Government of  Timor -Leste to have access to 
specialized technical assistance in order to appropriately integrate IP related issues into the  national 
development framework and cater for the interface of broad national IP policies and strategies with relevant national policy issues. T he MoU ensure d that WIPO 's assistance would target the necessary 
legislation and policy reforms to comply with the WTO Agreement on Trade -Related Aspects of 
Intellectual Property Rights (TRIPS Agreement), aiming to: (i) develop a National IP Strategy /Policy  
and its Action  Plan; (ii) integrate IPR -related agreements into the national policy and regulatory 
framewor k; and , (iii) set up a National IP Office and  provide capacity building. To achieve these 
objectives, the Government of Timor -Leste committed to using the existing methodo logy and tools 
of the WIPO, while still recognizing the specific national circumstances and requirements.  
271.  Responding to a Member's question on Timor -Leste's  membership in other IP -related 
conventions, including  the principal treaties in the field of IP as well as other international copyright 
treaties, such as the WIPO Internet Treaties , the representative of Timor -Leste responded that 
the Government of Timor -Leste committed to sign and ratify all conventions and treaties deemed 
necessary for having a modern IP regime, as well as the ones required in the context of accession 
to the WTO. The timeframe for joining such conventions and treaties would result from the national 
assessment of IP -related issues in Timor -Leste.  
272.  Responding to a Member's question, he added that  the Copyright Law No.  14/2022 of 
21 December 2022 had been appro ved and had entered into force on 22 June 2023.  The Government 
of Timor -Leste , assisted by USAID and WIPO,  was finalising the development  of the Industrial 
Property Code,  which include d provisions on trademarks, patents, utility models, industrial designs, WT/ACC/SPEC/TLS/5/Rev.3  
 
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  geographical indications and trade secrets. This draft Code had been  submitted to the Working Party 
for Members' comments and review , together with the Decree- Law on the Establishment of the IP 
Office  adopted in December 2023.  Provisions on treatment of plant varieties  were yet to be 
developed separately.  
273.  As an LDC, the Government of Timor -Leste expect ed to be granted an adequate period to 
adopt TRIPS -inherent obligations in the nation al system. Since IP -related issues we re knowledge 
intensive and specialized in nature, they required  the country to have the appropriate institutions 
and human capital in place, which t ook time. In response to a  Member's question on the timeline for  
the adoption of IP laws, he referred to the Action Plan on the Implementation of the TRIPS Agreement 
provided in Annex 19. 
- Application of national and most favoured nation treatment to foreign nationals  
274.  The Private Investment Law  set for th the general principle of equal treatment between national 
and foreign investors , determining that all investors enjoy ed non-discriminatory treatment in terms 
of rights and guarantees, exce pt with regards to land ownership and to the minimum investment or 
re-investment values. Within the Law, an investment was defined as any direct or indirect 
investment in the country undertaken on behalf of and at the risk of the private investor with cash  
or other goods, quantifiable in monetary terms, such as patented technology, technical processes, 
industrial secrets and utility models, franchising and transfer of know -how, brands, logos, names or 
insignias of registered establishments, as well as any o ther form of intellectual property.  Article 19 
of the Law (Intellectual Property) established that all investors had the right to the protection of 
industrial secrets, copyright, industrial property rights, trademarks, or any other intellectual property 
rights recognized by law.  The Law contained general provisions applicable to foreign investors' 
intellectual property rights and referred the respective regime to specific specialized IP legislation 
which was yet to be developed to further regulate standards , enforcement and dispute settlement 
mechanisms inherent to investors' rights and guarantees.  Thus, i nvestors were guaranteed the right 
to freely transfer funds abroad, which included income obtained from the transfer of intellectual 
property rights which constituted the investment. The Law also established that investors were 
entitled to protect patents or utility models which they had registered as the respective authors, as 
well as trademarks, logos, names or insignias of establishments and other informa tion, and object s 
of protection in terms of IP, according to the applicable legislation .  
- Fees and taxes  
275.  The representative of Timor -Leste informed that the Private Investment Law grant ed 
the opportunity to national and foreign investors to be awarded certain tax benefits and customs 
incentives  (see the section on "Investment regime ").  
2. SUBSTANTIVE STANDARDS OF PROTECTION  
- Copyright  and r elated rights  
276.  The representative of Timor -Leste informed that the Copyrights Law No.  14/2022 of WT/ACC/SPEC/TLS/5/Rev.3  
 
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  21 December 2022 had been adopted. The Law provided for a 180- day period for public 
dissemination prior to entering into force, in June 2023. The Law aimed to protect literary, artistic 
and scientific works as well as the rights of their authors, artists, producers of phonograms and 
videograms, and broadcasters. The Law was expected to stimulate the creation and production of 
artistic and intellectual works in literature, arts, and science. A copy of the Law was shared with the 
Working Party.  
277.  A Member asked a question about the term "private use" contained in  Article  129 of the 
Copyright Law. The representative of Timor -Leste explained that the expression "private use" wa s 
understood to mean use other than public use or use for profit.  
278.  In response to a Member's question, he confirmed that his Government intended to comply 
with all provisions of the TRIPS Agreement applicable to LDCs, and its inherent standards, 
enforcement and dispute mechanisms , including by joining the Berne Convention for the Protection 
of Literary and Artistic Works ( Berne Convention ) and by establishing t he relevant protections for 
copyrights and related rights consistent with Part II, Section 1 of the TRIPS Agreement and Articles 
1-21 of the Berne Convention .  
- Trademarks , including service marks  
279.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure the protection of trademarks , including service marks.  
The Government was finalizing the draft Industrial Property Code, which would contain provisions 
on trademarks, for promulgation in early 2 024. In response to Member's question, he confirmed that 
his Government intended to join the Paris Convention for the  Protection of Industrial Property  (Paris 
Convention ) and to establis h the relevant protections for trademarks, including service marks  
consistent with Part II, Section 2  of the TRIPS Agreement and Articles 6 -10 of the Paris  Convention.  
- Geographical I ndications , including appellations of origin  
280.  The representative of Timor -Leste informed that t here were presently no laws and related  
substantive measures to ensure the protection of geographical indications , including appellation of 
origin . The Government was finalizing the draft Industrial Property Code, which would contain 
provisions on geographical indications, for promulgation in e arly 2024.  In response to a  Member's 
question, he confirmed that his Government intended to establish the  relevant protections for 
geographical indications, including appellation of origin consistent with Part II, Section 3 of the TRIPS 
Agreement.  
- Industrial designs  
281.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure the protection of industrial designs. The Government was finalizing 
the draft Industrial Property Code, which would contain provisions on industrial designs, for 
promulgation in early 2024 . In response  to a Member's question, he confirmed that his Government 
intended to comply with all provisions of the TRIPS Agreement applicable to LDCs, and its inherent WT/ACC/SPEC/TLS/5/Rev.3  
 
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  standards, enforcement and dispute mechanisms, including by establishing the relevant protections 
for industrial designs  consistent with Part II, Section 4  of the  TRIPS Agreement.  
- Patents  
282.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure the protection of  patents.  The Government was finalizing the 
draft Indus trial Property Code, which would contain provisions on patents, for promulgation in early 
2024.  In response to a Member's question , he confirmed that his Government intended to establish 
patent laws  consistent with Part II, Section  5 of the TRIPS Agreement.  
- Plant variety protection  
283.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure plan t variety protection.  In response to a Member's question, 
he confirmed that his Government intended to establish plant variety protection laws consistent with 
Part II, Section 5, Article 27(3)(b)  of the TRIPS Agreement.  
284.  Responding to a request from a Member for Timor -Leste to ensure, before its accession to the 
WTO, that its relevant laws allow natural or legal persons of all WTO Members to apply for plant 
variety rights , the representative of Timor -Leste further confirmed  that his Government recognized 
the importance of aligni ng its intellectual property legislation with international standards and was 
dedicated to fulfilling its obligations under the TRIPS Agreement. I t also recognized the importance 
of protecting plant varieties and fostering innovation in agriculture. Theref ore, the Government , in 
collaboration with the World Intellectual Property Organization (WIPO) , had taken proactive steps to 
initiate the drafting of legislation related to p lant variety protection. Timor -Leste was fully committed 
to developing and implementing this law by 2026, in accordance with the  proposed Action Plan for 
the Implementation of the TRIPS Agreement in Annex 19.  
- Layout designs of integrated circuits  
285.  The representative of Timor -Leste informed that there were presently no laws and related 
substantive measures to ensure the protection of layout designs of  integrated circuits.  In response 
to a Member's question, he confirmed that his Government intended to join the Treaty on IP in 
Respect of Integrated Circuits (IPIC) and to establish layout designs of integrated circuit laws consistent with the TRIPS Agree ment Part II, Section 6  of the TRIPS Agreement and the IPIC.  
- Requirements on undisclosed information , including trade secrets and test data  
286.  The representative of Timor -Leste informed that n o protection wa s currently provided to 
undisclosed information, i ncluding trade secrets and test data. The Government was finalizing the 
draft Industrial Property Code, which would contain provisions on trade secrets, for promulgation in 
early 2024. In response to a  Member's question, he confirmed that his Government intended to join 
the Paris Convention and to establish  laws on trade secrets and test data consistent with Part II, 
Section 7 of the TRIPS Agreement and Article  10bis of the Paris Convention . WT/ACC/SPEC/TLS/5/Rev.3  
 
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  3. MEASURES TO CONTROL AB USE OF INTELLECTUAL PROPERTY RIGHTS  
287.  The representative of Timor -Leste informed that  IPRs were not specifically protected in 
Timor -Leste due to the absence of specific statutes covering t hese matters. However, t o control 
the use of IPRs , one c ould use judicial courts and the general civil proceedings  apply ing thereto.   
288.  As a temporary mechanism , companies run advertisements in local newspapers (commonly 
called "Cautionary Notices" ) in order to publicize the fact that a given IPR was exclusively owned by 
a certain company and that its unlawful use was forbidden. A Cautionary Notice was a simple 
advertisement that stated the name and address of the IPR owner along with a description of 
the goods and services the IPR aims to protect. In the case of a patent, an abstract was also included. 
In the case of a design, it was common to include the relevant representation. Trademarks were 
generally displayed exactly as they are being used (wo rd and/or device) with the corresponding list 
of goods or services. According to local practice, Cautionary Notices were written in Tetum and in English. Businesses generally republish ed Cautionary Notices every two years so that, in case of 
infringement, IPR owners ha d a recent publication to buttress their claim. Licen ces, changes of name 
or address, and assignments could  also be mentioned on republication , so that IPR owners ha d 
the most up -to-date proof of ownership or licen ce. Although there were no le gal grounds for this 
practice, the publication of Cautionary Notices remained the only procedure that interested parties 
could adopt in an attempt to overcome the absence of IPR registration and protection in Timor -Leste.  
4. ENFORCEMENT  
289.  Referring to paragraph 288, the representative of Timor -Leste said that the Cautionary Notices 
mechanism had proven to be an effective and efficient way of preventing trademark, patent and 
design infringements to date.  Cautionary Notices granted a cause for action against infringement.  
Companies indicated that, in the event of IPR infringement, sending a "cease and desist letter" along 
with a copy of a local newspaper containing the Cautionary Notice advertisement contr ibuted to 
limiting counterfeited goods from entering or circulating in Timor -Leste, despite the absence of an 
IP law. If counterfeiting occurred, the Government was committed to seizing and destroying 
counterfeited goods when they were reported.  
290.  A Member f urther asked to clarify how the Government of Timor -Leste determined the valid 
IP right holder of intellectual property, in spite of no IP registration, and how the Government 
determined the goods  in question w ere counterfeit. In response, the representati ve of Timor -Leste 
referred to Article 305 of the Code of Civil Procedure (Decree- Law No. 1/2006 of 21 February 2006) 
that provided that, whenever a person showed sustained concern that somebody else was causing 
serious injury to their  right that was diffic ult to repair , they could request specifically adequate 
conservatory or preventive measures  to ensure the effectiveness of the right being threatened.  
Decree- Law No. 23/2009 of 5 August 2009 on "Food Safety and Business Administrative Offences" 
established  in Article 21 (Fraud on Goods) that anyone who imported or sold, as a  wholesaler or 
retailer, with the intention of deceiving consumers in commercial relations, was punished with a fine 
of US$ 3,000.00 to US  $20,000.00 for goods and merchandise that were : (i) counterfeit, forged or 
depreciated, making them appear authentic, unaltered or intact; or (ii) of a different nature or of a WT/ACC/SPEC/TLS/5/Rev.3  
 
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  lower quality and quantity than th at which they appeared or claim ed to possess. Public authorities 
determined a counterfeit, f orged or depreciated product by way of an administrative offence 
procedure based on Article 38.1. of Decree- Law No. 23/2009 . The appeal c ould be submitted to the 
court. Such provision allowed for  the reporting of counterfeited goods to law enforcement institutions 
(e.g. National Police of Timor -Leste, Customs Police), whereby informal Cautionary Notices could be 
used to sustain complaints and legal causes against occurrences of IPR infringements. He informed 
that his Government was aware that this system was weak and carried inefficiencies. It was 
committed to setting up a modern IP legal framework, as well as capable human capital and 
enforcement institutions.  
291.  He added that there were a number of domestic statutes and multilateral treaties, to which 
Timor -Leste was a party, which addressed IP enforcement, as descri bed in this section . Specifically, 
the Cust oms Code (Decree -Law No. 14/2017 of 5 April 2017) set forth the application of prohibitions 
or restrictions with regard to goods presented to customs on the grounds of morality and public 
security, health protection, protection of the lives of people and animals, preservation of vegetables, preservation of the  environment, protection of national a rtistic, historic, or archaeological property, 
or protection of industrial and commercial property.  Responding to a  Member's question on Article 
59 that  stated that industrial and commercial property could  be prohibited or restricted, he informed 
that the  Government intended to grant IPR  holders in Timor -Leste the right  to lodge an application 
for the suspension of goods suspected of being counterfeit or pirated .  
- Civil judicial procedures and remedies  
292.  The representative of Timor -Leste informed that t here were no civil judicial procedures and 
remedies spec ifically prepared to address IP -related rights. In response to a Member's question, 
he added that in a dispute regarding IPRs , the parties concerned cou ld have recourse to the general 
civil procedure to safeguard their rights, including by means of "unspecified precautionary measures" to prevent infringement of IPRs. He confirmed that his Government intend ed to develop and ensure 
the enforcement of the pr ovisions of the TRIPS Agreement applicable to LDCs,  including 
the establishment and enforcement of Civil judicial procedures and remedies consistent with Part III, 
Section 2  of the TRIPS Agreement . 
- Administrative procedures and remedies 
293.  The representative of Timor -Leste informed that there were no administrative procedures and 
remedies in place. In response to a Member's question, he confirmed that his Government intend ed 
to develop and ensure the enforcement of the provisions of the TRIPS  Agreement applicable to LDCs,  
including the establishment and enforcement of administrative procedures consistent with Part III, 
Section 2  of the TRIPS Agreement . 
- Provisional measures  
294.  The representative of Timor -Leste informed that there were no provisional measures in place. 
In response to a Member's question, he confirmed that his Government intend ed to develop and WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ensure the enforcement of the provisions of the TRIPS Agreement applicable to LDCs,  including the 
establishment and enforcement of provisional measures  consistent with Part III, Section 3  of 
the TRIPS Agreement.  
- Special border measures 
295.  The representative of Timor -Leste informed that u nder Article 11 of Decree- Law No. 9/2004 
of 19 May 2004 on "Import, Storage and Circulation of Pr oducts Subject to Selective Excise Tax ", 
companies could  issue a supporting document for every good cleared from a Customs Bonded 
Warehouse (Loading Receipt) that should  include , among other information, information on the trade 
name of the product.  
296.  Furthermore, UNTAET Executive Order No. 2002/12 of 18 May 2002 on "Trade of goods 
bearing the national symbols of Timor -Leste", also included provisions on enforcement  at the border . 
Article 3.1 of the Order established that failure to fully and immediately comply with this Order 
constituted an offense and resulted in its prompt enforcement by all lawful means available to 
the Timor -Leste Public Administration . Under Article 3.4, these provisions were in addition to, and 
in no way limited, substituted, or intervened with , prosecuting any criminal proceeding or the 
imposition of any criminal sanctions pertaining to the unauthorized use of trademarks, trade names, and similar items of intellectual and industrial property rights with respect to the national sym bols. 
297.  Additionally, Article 27 of the Convention on International Civil Aviation provided for 
exemption from seizure on patent claims . While engaged in international air navigation, any 
authorized entry of aircraft of a contracting State into the territory  of another contracting State or 
authorized transit across the territory of such State with or without landings sh ould not entail any 
seizure or detention of the aircraft or any claim against the owner or operator thereof or any other 
interference therewit h by or on behalf of such State or any person therein, on the ground that 
the construction, mechanism, parts, accessories or operation of the aircraft wa s an infringement of 
any patent, design, or model duly granted or registered in the State whose territo ry was entered by 
the aircraft, it being agreed that no deposit of security in connection with the foregoing exemption 
from seizure or detention of the aircraft sh ould in any case be required in the State entered by such 
aircraft. Pursuant to Article 15 of  the World Health Organization (WHO) Framework Convention on 
Tobacco, addressing illicit trade in tobacco products, the parties recognized that the elimination of 
all forms of illicit trade in tobacco products, including smuggling, illicit manufacturing an d 
counterfeiting, and the development and implementation of related national law, in addition to 
sub-regional, regional and global agreements, were essential components of tobacco control. With 
Timor -Leste being party to both Conventions, these provisions applied as reflected in its domestic 
legal framework.
  
298.  He confirmed that his Government intended to develop and ensure the enforcement of 
the provisions of the TRIPS Agreement applicable to LDCs, including the establishment and 
enforcement of special border measures procedures consistent with Part III, Section 4 of the 
TRIPS  Agreement.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - C riminal p rocedures  
299.  The representative of Timor -Leste informed that  there are no criminal procedures in place. In 
response to a Member's question , he confirmed  that his Government intended to develop and ensure 
the enforcement of the provisions of the TRIPS Agreement applicable to LDCs, including 
the establishment and enforcement of criminal  procedures consistent with Part III, Section 5 of 
the TRIPS Agreement.  
- Transitional arrangements  
300.  The representative of Timor -Leste  indicated that as a least -developed country, Timor -Leste  
would need a transitional period to implement all commitments under the TRIPS Agreement. Significant technical assistance and capacity building would be required from WTO Members to carry 
out this work.  Referring to paragraph 272 he informed that Timor -Leste had adopted the Copyright 
Law No. 14/2022 of 21 December 2022. The Law provided protection for the artistic and intellectual 
creations of author s. A national registry was being created to provide due recognition and 
organization to this sector . He further confirmed that the Decree -Law on the Establishment of the 
Industrial Property (IP) Institute had been adopted in November 2023. The  remaining  intellectual 
property -related laws  – the Industrial Property Code and the Law on Protection of Plan t Varieties – 
would be adopted by 2026. For other measures necessary to ensure adequate and proper 
enforcement, the representative of Timor -Leste had presented the Action Plan with details of the  
specific steps that had to be taken in order to achieve compliance with the TRIPS Agreement ( Annex 
19). 
301.  The representative of Timor -Leste  requested that, in addition to the benefits of special and 
differential treatment for least- developed countries under the TRIPS Agreement and the various 
Ministerial Conference Declarations , including under the Doha Declaration on the 
WTO TRIPS  Agreement and Public Health (document WT/MIN(01)/DEC/2
), the Hong Kong Ministerial 
Declaration (document WT/MIN(05)/DEC , paragraph 47), and the TRIPS Council Decision of 
29 June 2021 "Extension of the Transition Period under Article 66.1 for Least Developed Country 
Members" (document IP/C/ 88), the Working Party grants Timor -Leste  a transitional period unti l 
1 January 2027  to undertake the relevant legislative reform and equip the Government to fully 
implement the obligations under  the TRIPS Agreement.   
302.  The representative of Timor -Leste  confirmed that, should a transition period be granted,  
Articles  3, 4 and 5 of the WTO Agreement on Trade- Related Aspects of Intellectual Property Rights, 
providing for, inter alia , national treatment and MFN treatment, would apply from the date of 
accession, and Timor -Leste  would ensure that any changes made in its laws, regulations and practice 
in the transitional period would not result in a lesser degree of consistency with the provisions of the 
WTO Agreement on Trade -Related Aspects of Intellectual Property Rights that e xisted on the date 
of accession.  He added that existing rates of infringement would not, in his view, increase 
significantly over this transition period, and that any infringement of intellectual property rights would be addressed immediately in cooperatio n with and with assistance from the affected right  
holders.  He confirmed that the Government of Timor -Leste  would seek all available technical WT/ACC/SPEC/TLS/5/Rev.3  
 
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  assistance to ensure that its capacity to fully enforce its TRIPS -consistent legal regime, upon the 
expiration of  the transition period, was assured, and that Timor -Leste  would make available 
TRIPS  legislation in draft and promulgated form to the WTO TRIPS Council for circulation to 
interested Members.  The Working Party took note of these commitments.  
303.  The representat ive of Timor -Leste  confirmed that Timor -Leste  would fully apply the WTO 
Agreement on Trade- Related Aspects of Intellectual Property Rights  no later than 1  January  2027, 
in accordance with the Action Plan in Annex 19, with the understanding that during this period , 
protection for intellectual property rights listed in  paragraph 300 would be applied in Timor -Leste . 
The Working Party took note of this commitment.  
VI. POLICIES AFFECTING TRADE IN SERVICES  
304.  The representative of Timor -Leste informed that, d epending on the nature and the length of 
the activities to be carried out in Timor -Leste, foreigners and foreign entities  were able to perform 
activities  and provide services in the country provided that they establish ed a legal presence in 
Timor -Leste, through the registration of permanent representation of a foreign entity as a branch or 
as a local affiliate  (see Annex 20).  
305.  In this regard, h e explained that, for a non -resident entity to be permanently established in 
Timor -Leste, it had to, inter alia : (i) incorporate a local company or register a local permanent 
representation (branch) in Timor -Leste; (ii) have a fixed place of business in Timor -Leste; (iii) hire 
personnel to perform work in Timor -Leste for a period exceeding 60 days in aggregate within any 
given 12- month period; and/or , (iv) maintain an entity that could be deemed as a "dependent agent" 
in Timor -Leste. Foreign service providers  had to comply to four types of requirements which also 
applied to local operating businesses: (i) obtaining a Taxpayer Identification Number (TIN); 
(ii) obtaining a business licen ce, when a licen ce or an authorization was required to exercise activi ty; 
(iii) registering the business entity with the Commercial  Registration  and Verification Service 
(SERVE) ; and (iv) comply ing with continuing obligations to register particular facts or events that 
apply to each type of business entity.  
306.  A Member enquired about the estimated timeframe that foreign service providers would 
normally face in complying with these requirements, and whether such requirements and 
the timeframe differed for domestic service providers. The representative of Timor -Leste said that 
documents required for submission by foreign entities included the: (i) Act of Deliberation: for  
foreign comp anies who were interested in establishing and registering their firm and creat ing a 
Permanent Establishment (PE) for the  company; (ii) original passport, company 's bylaw, and 
marriage certificate (if applicable), which had  to be certified by a notary in  the country of origin, 
prior to being submitted to Timor -Leste 's mission for final certification attesting its legitimacy ; and 
(iii) identified location for business activity.  Once these documents were submitted, should they 
satisfy the above requirements, S ERVE processed them in five  business days.  He added that 
domestic and foreign nationals and legal entities had to comply with the same requirements as WT/ACC/SPEC/TLS/5/Rev.3  
 
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  foreigners or foreign entities, with the exception of the Act of Deliberation, which wa s only required 
for foreign entities.   
307.  Timor -Leste's measures affecting movement of natural persons are contained in A nnex 21.  
308.  The representative of Timor -Leste informed that, Article 54.4 of the Constitution  and 
Article  7.1 of Law No. 13/2017 of 5 June 2017 on "Special Regime for Determination of Ownership 
of Immovable Property"  limited land ownership to national citizens of Timor -Leste. Article 2 of 
the Legal Framework on Real Estate Property (Law No.  1/2003 of 10 March 2003) elaborated that 
landowners could be either national citizens or the State . Furthermore, Law No. 13/2017 of 
5 June 2017 on "Special Regime that Defines the Ownership of Real Estate" (Land Law) provided 
that only legal entities 100% owned by Timor -Leste nationals were entitled  to purchase and own 
land in Timor -Leste.  Foreign persons conducting legal activities in Timor -Leste could only  lease land 
for up to 50  years : (i) up to 10 years for small compan ies or industries, (ii) up to 30 years for 
medium -size compan ies or industr ies, or (iii) up to 50 years for  big compan ies or industr ies. Under 
Article 25.1 of the Private Investment Law, private investors were entitled to lease land for 50 years , 
renewable for peri ods of 25 years to a total of 100 years . In the case of an investment that wa s an 
object of a Special Investment Agreement, more favo urable conditions could be negotiated to 
maximize the investment . For other relevant sources of laws regarding interests in real estate, see  
Annex 22.  
309.  There were a number of Government ministries, agencies and professional associations that 
played a role in the regulation of services acti vities. The principal Governmental bodies were the: 
(i) Ministry of Commerce and Industry ; (ii) Ministry of Finance; (iii) Ministry of Public Works, 
Transports, and Communication; (iv) Ministry of Agriculture, Livestock, Fisheries and Forestry ; (v) 
SERVE; and, (vi) Ministry of Health.  The full list of Ministries is  contained in  Annex 23.  He added 
that Timor -Leste had its own list of Economic Activities Classification (EAC) published as an annex 
to Decree -Law No.  34/2017 of 27 September 2017 on the "Licensing of Economic Activities ". For 
purposes of the  WTO accession process, the United Nations (UN) Central Product Classification, as 
recorded in document MTN.GN S/W/120 of 10 July 1991, was employed.  
310.  Decree- Law No. 34/2017 had prohibit ed commercial activities including wholesale, retail, 
general commerce, importing and exporting of goods and supply of services as a principal or 
commercial agent without authorization.  This general prohibition had been abolished with the 
adoption of Decree- Law No. 83/2022 of 23 November 2022.  Specialized legislation prohibited the 
carrying o ut of certain activities without a special licen ce issued by regulatory agencies . The list of 
such activities was re -produced in Annex 8(D ). 
311.  For example, commercial banks operating in Timor -Leste had to obtain a licen ce from 
the Central Bank of Timor -Leste  (CBTL)  and have a minimum paid -up capital of US$ 2,000.00. 
Insurance companies were also subject to licensing, should be established in the form of a limited 
liability enterprise / joint stock company , and have paid -up capital of more than US$  500,000.00. WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Compan ies working in private security services were required to have a CEO with Timor -Leste 
nationality.   
312.  Legal persons in the business of social games, slot machines, and traditional games had to 
obtain a prior activity licence  to operate and had to be legally incorporated under the laws of 
Timor -Leste. They had to: (i) prove their  good reputation and demonstrated technical, economic 
and financial capacity to develop this activity; (ii) apply for a concession to develop this activity, and 
(iii) have a minimum pa id-up capital of US$ 400,000,  as well as a banking account balance no less 
than US$ 250,000.  
313.  Referring to the  section on "Investment regime", he added that  other important areas where 
regulatory licensing was required included , amongst others, oil and gas upstream and downstream 
activities (subject to licensing/authorization by the National Petroleum Authority  under Law 
No. 3/2005 on Petroleum Activities ) and mining.  Carrying o ut a commercial activity without 
the appropriate authorization wa s an offence with a penalty between US$ 1,000 an d US$  10,000,  to 
be imposed on  those who d id not have an authorization .  
314.  The representative of Timor -Leste noted that the general policy was to promote open 
competition in all services sectors. Investors or companies could  employ foreign personnel or 
experts. The Government policy required  that all major business es ensure d that a minimum 
percentage of the value of labour in all major projects in Timor -Leste was dedicated to the 
employment or accredited training  of citizens of Timor -Leste.  He further informed that there were 
no measures in place inconsistent with the most- favoured -nation (MFN) treatment. In response to 
a question from a Members, he clarified that it was the p olicy of the Government, as reflected in the 
National Employment Strategy 2017 -2030 and the Private Investment Law, to promote the 
employment and trainin g of Timorese citizens. As per Article 23(2)(c) of the Private Investment Law, 
investors could  have access to greater benefits as negotiated in Special Investment Agreements with 
the State when employing and training Timorese citizens. T he Government negot iated with investor s 
to define special benefits of different nature. Such  bilateral negotiations could  include percentages 
of labou r. He clarified that any investment project of a value of over one million dollars 
(US$ 1,000, 000) was considered a major pro ject. 
315.  At the same time , monopoly in electricity distribution and water supply still exist ed. The Public 
Electricity Company of Timor -Leste (EDTL-EP) operated  in this area. For social reasons, there wa s 
also a public funeral transportation service provided by the State,  given the lack of coverage and 
price of private services.  Foreign nationals were also prohibited from carrying o ut some commercial 
activities and therefore could not obtain a licence to carry out  business in the  reserved categories, 
as described in the section on "Investment regime" . The list of occupations that could not be 
performed by foreign nationals was as follows: (i) serv er in a bar, restaurant, hotel and shops; 
(ii) public drivers; (iii) receptionist; (iv) housekeeper, except individuals qualified to work with 
vulnerable people or children ; (v) hairdresser, except foreign nationals with specific training; 
(vi) security guard; (vii) clerk; (viii) warehouse supervisor; (ix) assistant in any job; (xi) photocopi er 
work; (xii) gardener; (xiii) traditional market and street vendor. Artisanal/traditional fishing permits WT/ACC/SPEC/TLS/5/Rev.3  
 
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  were also granted only to Timor -Leste nationals  (citizens and legal entities) . Activities that were 
reserved to nationals also included providing un iversal postal service , public communication services,  
and the development and exploration of national parks, marine or land reserves or other protected 
areas.  
316.  Further, h e informed  that t he existing limitation s on the participation of foreign capital we re 
the following: (i) press services sector/media, where  foreign capital was limited to up to 30% of the 
share capital; and (ii) access to road public carrier , where the business was only available to 
Timor -Leste citizens or to legal persons with over 50% of the share capital controlled by Timor -Leste 
citizens .  
317.  With respect to requirements on the specific type of legal entity through which a service may 
be supplied, he noted that, in the telecommunications sector , specific regulations applied that 
required for the service provider to be registered as a corporate body in Timor -Leste and to be 
registered as such within the National Regulatory Authority. In the air transport sector , services 
could only be provided by legal persons incorporated under the laws o f Timor -Leste. In the 
construction sector, the certification and registration of civil construction and technical consulting 
companies were mandatory for them to be able to bid for public procurement tenders.  With respect 
to the certification and registrat ion requirements applied to such companies, the representative of 
Timor -Leste clarified that they were su bject to the requirements established in Decree- Law 
No. 16/2017 of 17 May 2017 on "Business Registration"  and Decree- Law No.  34/2017 of 
27 September 2017 on "Licensing for Economic Activities"  (as amended by Decree- Law No. 83/2022 
of 23 November 2022).   
318.  Detailed i nformation on regulation in specific services sectors is contained in A nnex 24. 
319.  Referring to Annex 24, a Member asked for clarification on the requirements  applied to  foreign 
lawyers who had  to be registered with the Centre for Legal Training (CLT) , including the requirement 
to have knowledge of Ti mor-Leste 's legal framework , and how this knowledge was assessed by the 
CLT. The representative of Timor -Leste explained that , initial training for careers in the judiciary, 
including public prosecution and public defence, was held at the Legal and Judicia l Training Centre 
(CFJJ/CLT) of the Ministry of Justice. Exceptionally, and until the establishment of the Timor -Leste 
Bar Association, the CLT maintain ed all competencies for the training of lawyers.  The examination 
was held at the CLT, where the test was conducted by a panel nominated directly by the Minister of 
Justice.  The examination was composed of three tests: (i) a written test, which  aimed to assess the 
knowledge and understanding of the resolution of civil , commercial and criminal  law cases, as well 
as civil and criminal procedural law); (ii ) an interview test,  which aim ed to evaluate the candidate 's 
legal knowledge, critical thinking abil ity and argumentation; and (iii) a p sychological  test. 
320.  A Member also asked to provide information on  the regulatory  framework for  environmental 
services relating to wastewater treatment, disposal and sanitation . The representative of 
Timor -Leste responded that this services sector was undergoing reforms with an aim to develop a 
modern legal framework. He referred to Articles 41- 42 of Decree- Law No. 26/2012 of 4 July 2012  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  on "Basic Law of the Environment" which determined the State's competence to establish the 
mechanisms necessary to ensure the appropriate treatment of domestic, commercial and industrial 
wastewater and sewage effluents. The Law required that a ny establishment or plant which evacuate d 
wastewater had to  ensure that it wa s cleaned in accordance  with the environmental standards.  
The import of hazardous waste wa s prohibited, while the identification, control, production, 
transportation, storage, export, and use of hazardous waste wa s subject to special legislation . 
Furthermore, considering the environmental impact of urban solid waste on fresh water, the 
representative of Timor -Leste also referred to the solid waste management principles established by 
Article 10 of Decree -Law No.  2/2017 of 22 March 2017 on "Urban So lid Waste Management System"  
which provided that the provision of the urban waste management service obey ed the principles of 
public health and the environment; promotion of universality and equal access; quality and continuity of service and protection of  users' interests; economic and financial sustainability of 
services; user -payer principle; responsibility of the citizens adopting preventive behaviours  in the 
matter of waste production, as well as practices that facilitate their reuse, recycling or othe r forms 
of valorisation ; transparency in the provision of services; ensuring efficiency and continuous 
improvement in the use of the associated resources, responding to the evolution of the technical 
requirements and the best environmental techniques avail able; and promoting economic and social 
solidarity, correct territorial planning and regional development.  
321.  Referring to Annex 24, a  Member also enquired on which services sectors/sub -sectors were 
considered sensitive and highly sensitive. The representative of Timor -Leste responded that Timor -
Leste ha d a straightforward economic structure, while it was  still in the early stages of developing 
policies  and legislation on the services sectors. At the same time,  as described in the section on 
"Investment regime ", according to Timor -Leste 's Negative Investment List, the following activ ities 
were prohibited for  both national and foreign investment:  (i) highly sensitive: criminal activities,  
activities related to environmental protection areas, arms and ammunition production and 
distribution; and  (ii) sensitive: activities related to the offense of traditional customs,  postal and 
courier services, activities related to funeral services.  Other than these , Timor -Leste adopt ed a 
liberalized approach to the  services sector, with certain limitations on market access and national 
treatment applicable to foreign investments and foreign nationals.  
322.  In response to a request from a Member, the representative of Timor -Leste inform ed that, on 
13 June 2022, his Government had joined the WTO Initiative  on Services Domestic Regulation , as 
the first acceding government and an LDC. Timor -Leste would become a participant of the 
Declaration on Services Domestic Regulation upon accession. The Working Party took note of this 
commitment.  
VII. TRANSPARENCY 
- Public ation  of information on trade  
323.  The representative of Timor -Leste informed that legal instruments were only effective upon 
publication  in "Jornal da República" . Legal instruments were also publ ished online on the website of 
"Jornal da República" , which was part of the website of the Ministry of Justice at  www.mj.gov.tl
. WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Most of the legal instruments we re made available through the  provision of a link to the relevant 
issue of "Jornal da República".  
324.  The website of "Jorna l da República"  also contained  a webpage of the Office of Legal Affairs of 
the United Nations Integrated Mission in Timor -Leste (UNMIT): 
http://www.jornal.gov.tl/lawsTL/index -e.htm , which  include d the UNTAET Regulations enacted 
between October 1999 and May 2002, and a  webpage with  legislation from independence from  
May 2002 until the UN ceased to update the website in mid- 2012: http://www.jornal.gov.tl/lawsTL/-
RDTL -Law/index -e.htm . It include d links to the official legal instrument s in Portuguese and, in some 
cases, links to unof ficial English translations.  
325.  In addition, the website of the Government of Timor -Leste (http://timor -
leste.gov.tl/?lang=en ) co ntain ed a selection of legislation under  six categories. The website was 
regularly updated and provided information on the main policy decision taken weekly by the Council 
of Ministers, in three languages : Portuguese, Tetum and English. Some of the  websites of the 
individual Ministries, and the website of the Central Bank of Timor -Leste (CBTL) , also contain ed links 
to relevant  legislation.  
326.  A Member asked if Timor -Leste had in place already  or intended to put in place procedures to 
allow for comment on legal instruments before they were finalized,  and if there were any public 
consultations on draft or interim laws and decree -laws before they were finalized and published. 
The representative of Timor -Leste responded that during the drafting process of the different 
legislations, the Government could conduct public consultations with relevant stakeholders. The conduct of such consultations was at the discretion of the Government.  Referring to paragraph 
188, he further informed that his Government was setting up a mechanism for transparent public 
consultations for all draft legislative proposals with respect to technical regulations, standards and 
conformity assessment procedures by May 2024.  
327.  The representative of Timor -Leste confirmed that, upon accession, Timor -Leste  would fully 
and promptly implement Article  X of the WTO General Agreement on Tariffs and Trade 1994, 
Article  III of the WTO General Agreement on Trade in  Services, Article  63 of the WTO Agreement on 
Trade -Related Aspects of Intellectual Property Rights, and other transparency provisions in the 
WTO Agreements requiring notification and/or publication. He further confirmed that no law, 
regulation, judicial decision, administrative r uling, or other measure of general application pertaining 
to or affecting trade in goods, services and TRIPS would become effective prior to its publication in 
"Jornal da República" , along with the official websites of the relevant ministries . The publicat ion of 
such laws, regulations and other measures would include the effective date of these measures and list the products and/or services affected by the particular measure. The  Working Party took note of 
these  commitments.  
- Notifications  
328.  The representati ve of Timor -Leste informed that his Government recognize d the importance 
of notification requirements under the  WTO Agreements. Thus, it aspired to submit all initial WT/ACC/SPEC/TLS/5/Rev.3  
 
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  notifications required by the WTO Agreements within six months from the membership date.  Any 
laws, regulations, or other measures subsequently enacted by Timor -Leste, and which were required 
to be notified pursuant to the WTO Agreement s, would be notified in a time and manner consistent 
with WTO requirements.  
329.  Responding to a question from a M ember on how the Government intended to manage its 
notification obligations, the representative of Timor -Leste explained that, once Timor -Leste became  
a WTO Member, it would adhere to its initial notification obligations and would immediately notify 
any further changes to Members in regard to each amendment in its laws, legislations or other 
measures subsequently enacted in accordance with the WTO  rules. 
330.  A Member asked to clarify if the Permanent Secretariat on the Accession to the WTO, 
referenced in para graph 86, would be responsible for notifications . In response, the representative 
of Timor -Leste informed that  the Secretariat w ould be in charge of coordinating an d implementing 
the notification obligations.  
331.  The representative of Timor -Leste confirmed that, at the latest , within six months of the entry 
into force of the Protocol of Accession, Timor -Leste  would submit all initial notifications required by 
the WTO  Agreement. Any laws, regulations, or other measures subsequently enacted by  
Timor -Leste , and which were required to be notified pursuant to the WTO Agreement, would also be 
notified in a time and manner consistent with WTO requirements. The Working Party took  note of 
these  commitments.  
VIII.  TRADE AGREEMENTS  
332.  The representative of Timor -Leste informed that Timor -Leste was not a party to any customs 
union or free trade agreement or to any other bilateral or multilateral agreements relating to trade  
in goods and services, investment or intellect ual property.  It did  not belong to any  regional trade or  
labour market integration agreement.  The country  was a party to the following agreements: 
(i) Agreement between Timor -Leste and Indonesia on Traditional Border Crossings and Regulated 
Markets, signed in Jakarta, Indonesia, on 11 June 2003; and, (ii) Cooperation Agreement between 
Member States of the Community of Portuguese Language Countries (CPLP) on Cinema and Audio -
visuals, signed in Luanda, Angola, on 14 May 2005 , as well as a number of bilateral agreements  
(including BITs), listed in Annex 25 . Responding to a Member's question, he clarified that t here were 
no benefits/privileges associated with trade in services in these  bilateral agreements.  Timor -Leste 
also benefit ed from the following unilaterally granted preferential trade arrangements for its exports:  
• US Scheme of General System of Preferences;  
• EU Generalized System of Preferences;  
• Australia 's General System of Preferences; and  
• New Zealand 's General System of Preferences.   
333.  At the same time, the Government recognized the importance of regional cooperation. Since 
2011, when Timor -Leste had officially applied to become a member of ASEAN, it had been WT/ACC/SPEC/TLS/5/Rev.3  
 
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  undertaking the necessary institutional and legal reforms towards  full compliance with  the rules of  
the ASEAN Economic Community.  
334.  In response to a Member's question on his Government's plans to initiate trade negotiations 
to conclude  trade agreement s, the representative of Timor -Leste said that the Government was 
willing to consider entering into such negotiations and eventually sign trade agreements, to 
safeguard mutual interests and enhance mutual benefits, while honouring  commitments inherent to 
WTO accession. He elaborated that the Government put forth the necessary technical preparations  
to establish one negotiating team for Timor -Leste to join  multilateral and bilateral trade agreements . 
Such effort w as reflected in a number of  trade-related tra inings completed by g overnment officials . 
In parallel, considering Timor -Leste 's commitment to accede to the WTO and ASEAN, the 
Government continue d to work on strengthen ing its institutional and legal framework to be in 
conformity with the se agreements.  The s tate of play regarding Timor -Leste's ASEAN accession  is 
provided in Annex 26. 
335.  The list of multilateral organizations  and trade -related programs of other multilateral 
organizations  to which T imor-Leste was a member /participant  is provided in Annex 27 .  
336.  The representative of Timor -Leste confirmed that his Government would observe the relevant 
provisions of the WTO Agreement, including Article XXIV of the WTO General Agreement on Tariffs 
and Trad e 1994, the 1979 GATT Decision on Differential and More Favourable Treatment, Reciprocity 
and Fuller Participation of Developing Countries (Enabling Clause) and Article V of the WTO General 
Agreement on Trade and Services in its trade agreements and would ensure that the applicable 
provisions of the WTO Agreement for notification, consultation, and other requirements concerning 
free trade areas, customs unions and other preferential trade arrangements, of which Timor -Leste  
was, or may become, a member, were met from the date of accession. The Working Party took note 
of these commitments.  
CONCLUSIONS  
337.  The Working Party took note of the explanations and statements by  Timor -Leste  concerning 
its foreign trade regime, as reflected in this Report. The Working Party  took note of the commitments 
by Timor -Leste  in relation to certain specific matters which are reproduced in paragraphs 51, 63, 
75, 93, 100, 110, 114, 116, 122, 125, 133, 146, 150, 152, 164, 167, 173, 178, 180, 190, 231, 233, 
239, 255, 261, 302, 303, 322, 327, 331 and 336 of this Report. The Working Party took note that 
these commitments had been incorporated in paragraph 2 of the Protocol of Accession of Timor -Leste  
to the WTO.  
338.  Having carried out the examination of the foreign trade regime of Timor -Leste  and in light of 
the explanations, commitments and concessions made by the representative of Timor -Leste , the 
Working Party reached the conclusion that Timor -Leste  be inv ited to accede to the Marrakesh 
Agreement Establishing the WTO under the provisions of Article  XII. For this purpose, the Working 
Party has prepared the draft Decision and Protocol of Accession reproduced in the Appendix to this 
Report and takes note of Ti mor-Leste 's Schedule of Concessions and Commitments on Goods WT/ACC/SPEC/TLS/5/Rev.3  
 
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  (document  WT/ACC/TLS/[…] /Add.1 ) and its Schedule of Specific Commitments on Services 
(document  WT/ACC/TLS/[…] /Add.2 ) that are annexed to the dra ft Protocol. It is proposed that these 
texts be adopted by the Ministerial Conference when it adopts the Report. When the Decision is 
adopted, the Protocol of Accession would be open for acceptance by Timor -Leste  which would 
become a Member thirty days aft er it accepts the said Protocol.  The Working Party agreed, therefore, 
that it had completed its work concerning the negotiations for the accession of Timor -Leste  to the 
Marrakesh Agreement Establishing the WTO.  
_______________   WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEXES 
ANNEX 1  
Laws, Regulations and Other Information Provided to the Working Party  by Timor -Leste 
Legislation/Regulation  Legislation Notice  
ECONOMIC POLICIES  
UNTAET Regulation No. 2001/14, On the Official Currency and Legal Tender of 
East Timor  WT/ACC/TLS/5  
Law No. 1/2003, Legal Framework on Real Estate Property (Land Law)  WT/ACC/TLS/5  
Decree -Law No. 14/2003, Legal Regime for Public Companies  WT/ACC/TLS/5  
Decree -Law No. 20/2003, Legal Tender in Timor -Leste  WT/ACC/TLS/5  
Decree -Law No. 19/2004, Legal Regime of Property -Official Allocation and Leasing 
of Private Property of the State  WT/ACC/TLS/5  
Law No. 4/2005, Domestic Investment Law  WT/ACC/TLS/5  
Law No. 5/2005, Foreign Investment Law  WT/ACC/TLS/5  
Government Decree No. 5/2005, Rules of Procedure for Domestic Investment  WT/ACC/TLS/9  
Government Decree No. 6/2005,  Rules of Procedure for Foreign Investment  WT/ACC/TLS/5  
Law No. 8/2005, Petroleum Tax  WT/ACC/TLS/5  
Law No. 13/2005, Petroleum Activities Law  WT/ACC/TLS/5  
Decree -Law No. 7/2005, Public Tender of Petroleum Contract  Awards  WT/ACC/TLS/5  
Decree -Law No. 28/2008, Regulate Public Supply of Essential Goods  WT/ACC/TLS/5  
Government Resolution  No. 20/2008, on Public Supply of Essential Goods  WT/ACC/TLS/7  
Decree -Law No. 20/2008, National Petroleum Authority  WT/ACC/TLS/5  
Government Decree No. 13/2008, Regulation of Government Intervention in Public 
Supply and Prices of Essential Goods  WT/ACC/TLS/5  
Ministerial Diploma No. 6/2008, Price Stabilization Measures, to Combat Inflation 
and Speculative Prevention; Regulation on Government Intervention in the Market  WT/ACC/TLS/5  
Public Instruction No. 4/2009, Importation and Exportation of Cash  WT/ACC/TLS/5  
National Strategic Development Plan 2011 -2030 WT/ACC/TLS/27  
Government Resolution No. 13/2012, Reg ime for Setting  Maximum Sales Margin of 
Certain Essential G oods WT/ACC/TLS/7  
Ministerial Diploma No. 6/MTCI/III/2011, Regulation on Sales Price of Local Maize  WT/ACC/TLS/7  
Law No. 4/2011, Crimes of Monopolization and Speculation  WT/ACC/TLS/5  
Ministerial Diploma No. 11/MTCI/VI/2011, Regulate Public Supply of Rice and 
Other Essential Goods  WT/ACC/TLS/7  
Law No. 5/2011, Organic Law of th e Central Bank of Timor -Leste of Timor -Leste 
(CBTL)  WT/ACC/TLS/5  
Decree -Law No. 29/2011, Fair Price  WT/ACC/TLS/5  
Decree -Law No. 31/2011, Timor Gap – Timor Gas and Petroleum, Public Enterprise  WT/ACC/TLS/9  
Law No. 14/2011, Private Investment Law  WT/ACC/TLS/5  
Law No. 17/2011, Anti -Money Laundering an d Counter Financing of Terrorism Law  WT/ACC/TLS/5  
Law No. 4/2012, Labour Code  WT/ACC/TLS/5  
Decree -Law No. 1/2012, Downstream Sector  WT/ACC/TLS/5  
Law No. 5/2012, Strike Law  WT/ACC/TLS/5  
Ministerial Diploma No. 14/2012, Public Supply of Rice  WT/ACC/TLS/7  
Decree -Law No. 42/2012, Legal Framework for Public Private Partnerships  WT/ACC/TLS/5  
Ministerial Diploma No. 1/2013, Regulation on Public Supply of Rice and 
Standardisation of Price  WT/ACC/TLS/7  
Ministerial Diploma No. 2/2013, Public Supp ly of Rice in Oe -Cusse Ambeno  WT/A CC/TLS/7  
Law No. 5/2013, Anti -Money Laundering and Counter Financing of Terrorism Law 
(1st Amendment)  WT/ACC/TLS/5  
BCTL Regulation No. 1/2013, Licensing and Supervision of Money Transfer 
Operators  WT/ACC/TLS/9  
Decree -Law No. 2/2014, 1st Amendment to Decree -Law No. 42/2012 of 7 
September 2012 on the Approval of the Legal Framework for Public Private 
Partnerships  WT/ACC/TLS/7  
Decree -Law No. 8/2014, Legal Regime for Public -Private Partnerships  WT/ACC/TLS/5  
Decree -Law No. 16/2014, Financial Intelligence Unit  WT/ACC/TLS/5  
Decree -Law No. 24/2014, Legal Regime to Establish Tourism Policy for Timor -
Leste  WT/ACC/TLS/7  
Decree -Law No. 26/2014, Establishment of the National Logistics  Center  WT/ACC/TLS/21  
Decree -Law No. 17/2015, National Payment System  WT/ACC/TLS/7  
Government Resolution No. 43/2015, Government Participation in the Investment 
of the Extraction of Cement and Limestone  WT/ACC/TLS/5  
Government Resolution No. 44/2015, Participation of Timor Gap, Public Enterprise, WT/ACC/TLS/7  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Legislation/Regulation  Legislation Notice  
in Oil Exploration  
Decree -Law No. 45/2015, Establishment of Investment and Export Promotion 
Agency, Public Institute (TradeInvest)  WT/ACC/TLS/7  
Decree -Law No. 1/2016, National Petroleum Authority  WT/ACC/TLS/5  
Government Decree No. 7/2016, National Labour Council  WT/ACC/TLS/7  
Law No. 8/2016, Consumer Protection Law  WT/ACC/TLS/5  
Decree -Law No. 32/2016, Legal Regime for Offshore Oil Operations in Timor -Leste  WT/ACC/TLS/5  
Government Decree No. 13/2016, Regulation on Bank Account for PPP of T íbar 
Port WT/ACC/TLS/7  
ANPM Regulation No. 2/2016, Downstream Commercialization Activities (regulates 
on registration and licensing for selling of fuels, biofuels and lubricants)  WT/ACC/TLS/9  
Government Resolution No. 36/2016, Exploration of Construction Material 
Reserved for Local Companies  WT/ACC/TLS/7  
Ministerial Diploma No. 64/2016, Specific Rules for  Licensing of Mineral Exploration 
Activities  WT/ACC/TLS/9  
Decree -Law No. 39/2016, Sub -division of Onshore Exploration Block  WT/ACC/TLS/7  
Government Resolution No. 9/2017, National Policy on ICT in 2017 -2019 WT/ACC/TLS/9  
Government Resolution No. 1 6/2017, National Tourism Policy 2030  WT/ACC/TLS/5  
Public Instruction No. 4/2017, Importation and Exportation of Cash  WT/ACC/TLS/9  
Law No. 8/2017, Expropriation for Public Purposes  WT/ACC/TLS/9  
Law No. 10/2017, Commercial Companies Law  WT/ACC/TLS/5  
Joint Ministerial Diploma No. 32/2017, Regulation of Price for the Re -Sale of Rice  WT/ACC/TLS/7  
Law No. 11/2017, Migration and Asylum  WT/ACC/TLS/9  
Law No. 13/2017, Special Regime f or Determination of Ownership of Immovable 
Property (Land Law)  WT/ACC/TLS/5  
Government Decree No. 28/2017, Model Constitutive Acts of Commercial 
Companies  WT/ACC/TLS/5  
Government Decree No. 27/2017, Establishment of the Criteria for the Obligation 
of Supervisory Body or External Auditor in Commercial Companies  WT/ACC/TLS/5  
Government Resolution No. 44/2017, National Employment Strategy (2017 – 
2030)  WT/ACC/TLS/5  
Law No. 15/2017, Private Investment Law  WT/ACC/TLS/5  
Regulation No. 3/2017, Minting and Use of Coins  WT/ACC/TLS/7  
2017 Timor -Leste Investment Guide  WT/ACC/TLS/21  
Government Decree No. 4/2019, 1st Amendment to Government Decree 
No. 2/2018 on Procedure Regulation for Private Investment  WT/ACC/TLS/7  
WT/ACC/TLS/27  
Decree -Law No. 16/2019, 1st Amendment to Decree -Law No. 3/2011 of 26 January 
2011, Statutes of the National Commercial Bank of Timor -Leste, S.A.  WT/ACC/TLS/7  
Law No. 4/2019, on Special Labor and Migration Regime Applicable to the Bayu -
Undan Project; additional applicable provisions in Law No. 11/2017, Migration and 
Asylum  WT/ACC/TLS/5  
Law No. 1/2019, 1st Amendment to the Petroleum Activities Law No.  13/2005, of 
2 September 2005  WT/ACC/TLS/7  
Law No. 6/2019, 2nd Amendment to the Petroleum Activities Law No. 13/2005, of 
2 September 2005  WT/ACC/TLS/9  
Resolution No. 9/2020, Integrated Project on Unique Ide ntifier of Timorese citizens 
and residents  WT/ACC/TLS/15  
Government Resolution No. 29/2020, Establishment of the Commission for 
Coordination and Monitoring of Institutional Reforms  WT/ACC/TLS/21  
Government Resolution No. 38/2020, Public Administrat ion Reform Program 2019 -
2023 WT/ACC/TLS/17  
Decree -Law No. 8/2021, Legal Regime for Classification and Qualification of Soil  WT/ACC/TLS/27  
Law No. 10/2021, 1st Amendment to Law No. 11/2017 on Migration and Asylum  WT/ACC/TLS/21  
Economic Recovery Plan of Timor -Leste 2020 -2023 WT/ACC/TLS/19  
CBTL Instruction No. 8/2009, Approval of Public Instruction No. 4/2009 o n Importation 
and Exportation of Cash  WT/ACC/TLS/19  
CBTL Instruction No. 5/2017, Customer Identification, Record Keeping and Transaction 
Report  WT/ACC/TLS/19  
Decree -Law No. 9/2022, Legal Framework for Building and Urbanization  WT/ACC/TLS/23  
Decree -Law No. 14/2022, Land Registry Cod e WT/ACC/TLS/23  
Government Resolution No. 34/2022, Private Sector Support  WT/ACC/TLS/27  
Public Financial Management Reform Strategy  WT/ACC/TLS/27  
Insolvency Law No. 1/2023  WT/ACC/TLS/27  
Timor -Leste Investment Reform Map  (revision)  WT/ACC/TLS/32  
Timor -Leste Investment Guide – 2023 Edition  WT/ACC/TLS/32  
Draft Insolvency Law  WT/ACC/TLS/23  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Legislation/Regulation  Legislation Notice  
Draft Insolvency Code  WT/ACC/TLS/26  
Draft Competition Law  WT/ACC/TLS/32  
Draft Decree -Law to Regulate Functional Structure of SERVE  WT/ACC/TLS/26  
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
Constitution of The Democratic Republic of Timor -Leste  WT/ACC/TLS/5  
Law No. 1/2002, Publication of Acts  WT/ACC/TLS/5  
Law No. 2/2002, Interpretation of Applicable Law  WT/ACC/TLS/5  
Law No. 10/2003, Interpretation of Section 1 of Law No. 2/2002 of 7  August 2002, 
and Sources of Law  WT/ACC/TLS/5  
Law No. 5/2004, Status of Members of Parliament  WT/ACC/TLS/5  
Criminal Procedure Code - Decree -Law No.  13/2005  WT/ACC/TLS/5  
Civil Procedure Code - Decree -Law No.  1/2006  WT/ACC/TLS/7  
Resolution by the National Parliament No. 25/2008, Ratification of UNCAC  WT/ACC/TLS/17  
Decree -Law No. 32/2008, Administrative Procedures  WT/ACC/TLS/5  
Law No. 2/2009 of 6 May 2 009 on Protection of Witnesses  WT/ACC/TLS/17  
Decree -Law No. 9/2009, PNTL - National Police of Timor -Leste  WT/ACC/TLS/5  
Penal Code - Decree -Law No.  19/2009  WT/ACC/TLS/5  
Law No. 11/2009, Territorial Administrative Division (Local Government)  WT/ACC/TLS/5  
Law No. 6/2009 on 1st Amendment, by Parliamentary Consideration, to the Penal 
Code  WT/ACC/TLS/5  
Civil Code - Law No. 10/2011  WT/ACC/TLS/5  
Law No. 3/2004  Political Parties  WT/ACC/TLS/17  
Government Decree No. 1/2015, Public Finance Procedures and Rules for 
Execution of State Budget 2015  WT/ACC/TLS/9  
Rules of Procedure of the Nat ional Parliament No. 1/2016  WT/AC C/TLS/9  
Law No. 4/2016, Territorial Administrative Division (Local Government)  WT/ACC/TLS/7  
Law No. 6/2017, Bas es for Territorial Planning  WT/ACC/TLS/7  
Joint Ministerial Diploma No. 42/2017, Regulation on Municipality Administration 
and Authority in Public Works Domain  WT/ACC/TLS/7  
Joint Ministerial Diploma No. 43/2017, Regulation on Municipality Administration 
and Authority in Water and S anitation  WT/ACC/TLS/7  
Government Resolution No. 51/2017, Rules of Procedure for the Council of 
Ministers  WT/ACC/TLS/7  
Decree -Law No. 14/2018, Organic Structure of the VIII Constitutional Government  WT/ACC/TLS/9  
Resolution No. 12/2019, Code of Con duct of Members of the Government  WT/ACC/TLS/17  
Decree -Law No. 27/2020, 2nd Amendment to Decree -Law No. 14/2018, Organic 
Structure of the VIII Constitutional Government  WT/ACC/TLS/9  
Law No. 7/2020, Preventing and Combatting Corruption  WT/ACC/TLS/15  
Annual Budget Law for 2021 (Law No. 14/2020, as amended by Law No. 8/2021)  WT/ACC/TLS/15  
Law No. 3/2021, Authorizing the Government to change the Civil Procedure Code  WT/ACC/TLS/15  
Law No. 6/2021, Legal Regime of Voluntary Arbitra tion and 1st Amendment to the 
Civil Procedure Code  WT/ACC/TLS/15  
Resolution No. 8/2021, Timor -Leste's Accession to the 1958 New York Convention 
on the Recognition and Enforcement of Foreign Arbitral Awards  WT/ACC/TLS/15  
Decree -Law No. 16/2021, Gen eral Structure of the Public Administration  WT/ACC/TLS/27  
Law No. 23/2021, Local Governments and Administrative Decentralization  WT/ACC/TLS/21  
Law No. 25/2021, System of Courts  WT/ACC/TLS/21  
Law No. 12/2022, 1st Amendment to the Law No. 25/2021, System of Courts  WT/ACC/TLS/27  
Law No. 15/2022, State Budget for 2023  (Article 3)  WT/ACC/TLS/27  
Decree -Law No. 70/2022, Management of Industrial Parks  WT/ACC/TLS/27  
Decree -Law No. 83/2022, 1st Amendment to Decree -Law No. 34/2017  on Licensing 
of Economic Activities  WT/ACC/TLS/27  
Decree -Law No. 87/2022, 1st Amendment to Decree -Law No. 14/2017  on Customs 
Code WT/ACC/TLS/27  
Decree -Law No. 95/2022, Rules of Origin  WT/ACC/TLS/27  
Draft Government Decree on Establishment of the Permanent Secretariat on the 
Accession to the WTO  WT/ACC/TLS/23  
Draft Decree -Law on Legal Regime for Administrative Offences  WT/ACC/TLS/26  
POLICIES AFFECTING TRADE IN GOODS  
Executive Order No. 2002/12, on Trade in Goods Bearing National Symbols 
(UNTAET)  WT/ACC/TLS/5  
Decree -Law No. 19/2003, Regulation on Port Tariff  WT/ACC/TLS/5  
Decree -Law No. 21/2003, Quarantine and Sanitary Controls of Imported and 
Exported Goods  WT/ACC/TLS/5  
Decree -Law No. 6/2004, General Bases of the Legal Regime for Fisheries and 
Aquaculture Management and Regulation  WT/ACC/TLS/5  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Legislation/Regulation  Legislation Notice  
Government Decree No. 5/2004, General Regulation on Fishing  WT/ACC/TLS/5  
Decree -Law No. 12/2004, Regulation of Pharmaceutical Activities  WT/ACC/TLS/5  
Ministerial Diploma No. 4/2004, Percentage of Insurance of Imported Goods  WT/ACC/TLS/17   
Minister ial Diploma No. 10/2004, Licensing fees for pharmaceutical activities  WT/ACC/TLS/17  
Ministerial Diploma No. 12/2004, Classification of Medicines  WT/ACC/TLS/17  
Decree -Law No. 4/2005, General Bases of the Legal Regime for Fisheries and 
Aquaculture Management and Regulation   WT/ACC/TLS/5  
Decree -Law No. 10/2005, Legal Regime for Procurement  WT/ACC/TLS/5  
Decree -Law No. 11/2005, Administrative Infractions of the Legal Regime for 
Procurement and the Legal Regime for Public Contracts  WT/ACC/TLS/5  
Decree -Law No. 12/2005, Legal Regime for Public Contracts  WT/ACC/TLS/5  
Decree -Law No. 8/2006, Regulation on Customs Duties  WT/ACC/TLS/5  
Government Decree No. 1/2006, Rules and Procedures to Implement Quarantine 
and Sanitary Controls of Imported and Exported Goods  WT/ACC/TLS/5  
Decree -Law No. 14/2006, 1st Amendment to the Legal Regime for Procurement  WT/ACC/TLS/5  
Law No. 8/2008, Taxes and Duties Act  WT/ACC/TLS/5  
Decree -Law No. 24/2008, 2nd Amendment to the Procurement Legal Regime  WT/ACC/TLS/5  
Decree -Law No. 5/2009, Licensing for Sale of Drinking Water  WT/ACC/TLS/5  
Decree -Law No. 2/2009, Special Procurement Legal Regime for Autonomous 
Service for Drugs and Health Equipment (SAMES)  WT/ACC/TLS/5  
Decree -Law No. 23/2009, Food Safety and Business Administrative Offences  WT/ACC/TLS/5  
Ministerial Diploma No. 1/2009, Procedure s for Issuance of Certificate of Origin for 
Coffee  WT/ACC/TLS/7  
Government Decree No. 8/2009, Regulation on Special Procurement for Priority 
Projects  WT/ACC/TLS/7  
Decree -Law No. 29/2009, Special Procurement for Priority Projects  WT/ACC/TLS/5  
Decree -Law No. 1/2010, 3rd Amendment to the Procurement Legal Regime  WT/ACC/TLS/5  
Decree -Law No. 2/2010, Special Procurement for Construction Work Up to US$ 
250,000  WT/ACC/TLS/5  
Decree -Law No. 3/2010, Organic of the Procurement Monitoring and Technical 
Commission  WT/ACC/TLS/5  
Decree -Law No. 14/2010, Temporary Procurement Measures  WT/ACC/TLS/5  
Decree -Law No. 11/2011, National Development Agency  WT/ACC/TLS/5  
Decree -Law No. 14/2011, National Procurement Commission  WT/ACC/TLS/5  
Decree -Law No. 15/2011, 4th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/5  
Decree -Law No . 30/2011, Conditions and Procedures to be Observed in relation to 
the Import of Motor Vehicles  WT/ACC/TLS/17  
Decree -Law No. 38/2011, 5th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/5  
Government Resolution No. 9/2012, Settlement Agreement Between the State and 
Timor Telecom  WT/ACC/TLS/7  
Decree -Law No. 18/2011, Decentralized Development Programmes I and II  WT/ACC/TLS/5  
Decree -Law No. 24/2011, Licensing of Economic Activities  WT/ACC/TLS/5  
Decree -Law No. 28/2011, F ood Industry and Marketing Regulation  WT/ACC/TLS/5  
Decree -Law No. 35/2012, Business Verification and Registration Services (SERVE)  WT/ACC/TLS/9  
Decree -Law No. 26/2012, Basic Law of the Environment  WT/ACC/TLS/5  
Decree -Law No. 36/2012, Control of Impo rts and Exports of Substances that 
Deplete the Ozone Layer  WT/ACC/TLS/17  
Decree -Law No. 11/2013, Procurement Legal Regime for the Integrated District 
Development Plan (PDID)  WT/ACC/TLS/5  
Decree -Law No. 5/2015, Creation of Free Trade Zone and Industrial Customs Free 
Zone in the Oe -Cusse Ambeno Region (ZEESM)  WT/ACC/TLS/9  
Decree -Law No. 10/2014, Regulation on Slaughterhouse Licensing  WT/ACC/TLS/9  
Decree-Law No. 13/2014, Regulation on Hygiene Requirement for Selling of Meat 
and Meat Products  WT/ACC/TLS/9  
Law No. 3/2014, Creation of the Oe -Cusse-Ambeno Special Administrative Region, 
and the Oe Cusse Ambeno and Atauro (RAEOA) Social Market Economic Spe cial 
Zone (ZEESM)  WT/ACC/TLS/5  
Decree -Law No. 28/2014, Procurement Special Regime for Special Administrative 
Region of Oe -Cusse Ambeno (ZEESM)  WT/ACC/TLS/5  
Government Resolution No. 37/2014, Special Investment Agreement with 
Heineken  WT/ACC/TLS/7  
Decree -Law No. 28/2015, Regulation on Port s Tariff (1st Amendment to Decree -
Law No. 19/2003)  WT/ACC/TLS/7  
Decree -Law No. 1/2016, 1st Amendment to Decree -Law No. 20/2008  WT/ACC/TLS/5  
Government Resolution No. 6/2016, National Trade Facilitation Commi ssion  WT/ACC/TLS/7  
Decree -Law No. 5/2016, National System of Protected Areas  WT/ACC/TLS/7  WT/ACC/SPEC/TLS/5/Rev.3  
 
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Decree -Law No. 12/2016, Special Procurement Legal Regime for Autonomous 
Service  for Drugs and Health Equipment (SAMES)  WT/ACC/TLS/9  
Decree -Law No. 15/2016, Procurement Legal Regime for the Integrated District 
Development Plan (PDID)  WT/ACC/TLS/5  
Decree -Law No. 26/2016, Establishment of the Authority for Inspection and 
Supervision of Economic, Food and Sanitary Activities  WT/ACC/TLS/5  
Decree -Law No. 35/2016, Creation of Installation Commission of the Authority for 
Inspection, Superv ision of Economic, Food and Sanitary Activity  WT/ACC/TLS/9  
Government Resolution No. 42/2016, Adoption of the Rules of the Revised Arusha 
Declaration of the World Customs Organization  WT/ACC/TLS/7  
Government Resolution No. 41/2016, Approval of State Capital Contribution and 
Participation in TL Cement  WT/ACC/TLS/7  
Decree -Law No. 2/2017, Urban Solid Waste Management System  WT/ACC/TLS/7  
Decree -Law No. 7/2017, Business Registration an d Verification Service (SERVE)  WT/ACC/TLS/5  
Decree -Law No. 9/2017, Organic Structure of the Customs Authority  WT/ACC/TLS/5  
Government Resolution No. 12/2017, National Policy for Nutrition and Food 
Security  WT/ACC/TLS/7  
Decree -Law No. 13/2017, Organic Structure of the Tax Authority  WT/ACC/TLS/5  
Decree -Law No. 14/2017, Customs Code of Timor -Leste  WT/ACC/TLS/5  
Law No. 14/2017, Legal Regime for Forestry  WT/ACC/TLS/9  
Decree -Law No. 16/2017, Business Registration (or Commercial Registration) 
Procedures  WT/ACC/TLS/5  
Government Resolution No. 43/2017, Review of Technical Documentation in the 
Procu rement Process for Public Works  WT/ACC/TLS/9  
Decree -Law No. 23/2017, Credit Guarantee Scheme for Small and Medium -Size 
Enterprises  WT/ACC/TLS/5  
Government Resolution No. 24/2017, on Adoption of ASYCUDA World Computer 
System  as a Platform for the Natio nal Single Window  WT/ACC/TLS/7  
Decree -Law No. 28/2017, Vehicle Movement Control Regime at the Entry and Exit 
from the National Territory  WT/ACC/TLS/9  
Decree -Law No. 34/2017, Licensing of Economic Activities  WT/ACC/TLS/5  
Ministerial Diploma  No. 3/2017, Import of Narcotics or Psychotropic Substances  WT/ACC/TLS/17  
Ministerial Diploma  No. 11/2017, Natural Medicines  WT/ACC/TLS/17  
Decree -Law No. 10/2018, Legal Statute of Quality Institute of Timor -Leste  WT/ACC/TLS/7  
Ministerial Diploma No. 34/2018, Tables of Fees for SERVE  WT/ACC/TLS/17  
Law No. 3/2019, 1st Amendment to Law No.  3/2014, Creation of the Oe -Cusse-
Ambeno Special Administrative Region, and the Oe -Cusse Ambeno and Atauro 
(RAEOA) Social Market Economic Special Zone (ZEESM)  WT/ACC/TLS/7  
Law No. 5/2019, 1st Amendment to Decree -Law No. 8/2008, Taxes and Duties Act  WT/ACC/TLS/7  
Decree -Law No. 27/2019, 2nd Amendment to Decree -Law No. 20/2008 , Creation of 
the National Petroleum and Minerals Authority  WT/ACC/TLS/7  
Decree -Law No. 6/2020, Legal Framework for the Protection and Conservation of 
Biodiversity  WT/ACC/TLS/18  
Decree -Law No. 30/2019, 6th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/7  
Decree -Law No. 2/2020, Establishment of the Structure o f the Customs Authority  WT/ACC/T LS/21  
Decree -Law No. 7/2020, Import, Transport, Storage and Explosive Products for Civil 
Construction, Oil and Mineral Activities  WT/ACC/TLS/17  
Government Resolution No. 31/2020, Establishment of Inter-ministerial Commission 
for Tax Reform and Public Finance Management and the Inter -ministerial Sub -
committee for Reform of State Heritage Management  WT/ACC/TLS/15   
Decree -Law No. 5/2021, 7th Amendment to the Legal Regime for Procurement  WT/ACC/TLS/19  
Decree -Law No. 15/2021, 1st Amendment to Decree -Law No. 10/2018 on the Statute 
of the Institute for the Quality of Timor -Leste, I.P.  WT/ACC/TLS/23  
Decree -Law No. 10/2022 , Approval of Measures to Strengthen the Distribution of Basic 
Food Baskets to the Timorese Families in Most Need and to Support Local Economic 
Operators and Creation of a Special Procurement Regime for this Purpose, under the 
Economic Recovery Plan  WT/ACC/TLS/30  
Government Resolution No. 20/2022 , Establishment of the Inter -Ministerial 
Commission for Coordination of the Value Chain and Stimulation of Local Production  WT/ACC/TLS/30  
Decree -Law No. 22/2022, Legal Regime for Procurement, Public Co ntracts and 
Respective Infractions  WT/ACC/TLS/23  
Decree -Law No. 39/2022, 1st Amendment to Decree -Law No. 5/2011 on Environmental 
Licensing  WT/ACC/TLS/23  
Decree -Law No. 41/2022, Establishment of the National Environmental Licensing 
Authority, I.P., and Approval of its Statutes  WT/ACC/TLS/23  
Decree -Law No. 42/2022, Establishment of the Designated National, Authority for 
Combating Climate Change, I.P., and Approv al of its statutes  WT/ACC/TLS/23  WT/ACC/SPEC/TLS/5/Rev.3  
 
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Decree -Law No. 43/2022, Mining Company of Timor -Leste WT/ACC/TLS/23  
Decree -Law No . 44/2022, Legal Framework for Industrial Parks  WT/ACC/TLS/23  
Law No. 11/2023 , Safety, Health and Hygiene at Work  WT/ACC/TLS/30  
Government Decree No. 3/2023 , Establishment of the National Secretariat for 
Accession to the World Trade Organization  WT/ACC/TLS/30  
Government Resolution No. 24/2023 , 1st Amendment to the Government Resolution 
No. 6/2016 on  Establishment of the National Commission for Trade Facilitation 
(CONFAC)  WT/ACC/TLS/30  
Decree -Law No. 36/2023 , Phytosanitary and Quarantine  WT/ACC/TLS/30  
Decree -Law No. 37/2023 , 1st Amendment t o Decree -Law No. 16/2017 on  Business 
Registration; 1st Amendment to Decree -Law No. 7/2017 on Business Registration and 
Verification Service, I.P. (SERVE) ; 2nd Amendment to Decree -Law No. 16/2004 on Law 
on Cooperatives  WT/ACC/TLS/30  
Decree -Law No. 40/2023 , on Metrology  WT/ACC/TLS/32  
Decree -Law No. 41/2023 , Animal Health and Quarantine  WT/ACC/TLS/30  
Resolution on Ratification of the International Convention on the Harmonized 
Commodity Description and Coding System (HS), approved by the National Parliament 
on 15 November 2023  WT/ACC/TLS/32  
Decree -Law on Commercial Licensing , adopted by the Council of Ministers on 18 
November 2023  WT/ACC/TLS/32  
Decree -Law on Industrial Licensin g, adopted by the Council of Ministers on 18 
November 2023  WT/ACC/TLS/32  
Decree -Law on Regulation for the Organization of Ship Inspection Services,  adopted by 
the Council of Ministers on 18 November 2023  WT/ACC/TLS/32  
Industrial Policy,  adopted by the Council o f Ministers on 18 November  2023 WT/ACC/TLS/32  
Decree -Law on Trade Remedies, adopted by the Council of Ministers on 6 December 
2023 WT/ACC/TLS/32  
Draft Law on Pesticides  WT/ACC/TLS/15  
Draft Decree -Law on Quarantine (Animal Health)  WT/ACC/TLS/5  
WT/ACC/TLS/9  
Draft Decree -Law on Quarantine (Plant Health)  WT/ACC/TLS/5  
WT/ACC/TLS/9  
Draft Import Requirements for Animals and Animal Products, and Plants and Plant 
Products (Quarantine Requirements)  WT/ACC/TLS/15  
Draft Decree -Law on Economic Activities Licensing (revision)  WT/ACC/TLS/23  
Draft Industrial Policy  WT/ACC/TLS/23  
Draft Government Resolution on the establishment of the National Trade Facilitation 
Committee (revision)  WT/ACC/TLS/23  
Draft Decree -Law on Rules of Origin  WT/ACC/TLS/23  
Draft Decree -Law on Import Licensing  WT/ACC/TLS/26  
Draft Law on Health, Safety and Hygiene at Work  WT/ACC/TLS/26  
Draft Export Promotion Law  WT/ACC/TLS/15  
WT/ACC/TLS/26  
Draft Decree -Law on Regulation on Business Registration Procedure (Amendment to 
Decree -Law No. 16/2017)  WT/ACC/TLS/27  
Draft Decree -Law on Industrial Licensing  WT/ACC/TLS/23  
WT/ACC/TLS/27  
Draft Decree -Law on Commercial  Licensing  WT/ACC/TLS/30  
Draft Decree -Law on Regulation for Organisation of Ship Inspection Services  WT/ACC/TLS/27  
Draft Parliament Resolution on Ratification of the International Convention on the 
Harmonized Commodity Description and Coding System  WT/ACC/TLS/30  
Draft Policy on Trade Remedies  WT/ACC/TLS/27  
Draft Investment Reform Map  WT/ACC/TLS/30  
Draft VAT Law  WT/ACC/TLS/32  
TRADE -RELATED INTELLECTUAL PROPERTY REGIME  
Indonesian Civil Code (Title XX Intellectual Property)  WT/ACC/TLS/5  
Parliament Resolution No. 16/2017, Ratification of the International Convention 
Establishing the WIPO  WT/ACC/TLS/5  
Copyright Law No. 14/2022  WT/ACC/TLS/27  
Decree -Law on the Establishment of the Industrial Property (IP) Institute,  adopted 
on 6 December 2023  WT/A CC/TLS/32  
Draft Industrial Property Code  WT/ACC/TLS/23  
WT/ACC/TLS/27  
Draft Copyright Law  WT/ACC/TLS/23  
Draft Decree -Law on the Establishment of the Industrial Property (IP) Institute  WT/ACC/TLS/23  
POLICIES AFFECTING TRADE IN SERVICES  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 97 - 
 
  Legislation/Regulation  Legislation Notice  
UNTAET Regulation No. 8/2000, Bank Licensing and Supervision  WT/ACC/TLS/5  
Decree -Law No. 2/2003, Basic Law on the Road Transport System  WT/ACC/TLS/5  
Decree -Law No. 11/2003, Regulation of the Telecommunication Sector  WT/ACC/TLS/5  
Decree -Law No. 13/2003, Bases for the National Electricity System  WT/ACC/TLS/9  
Decree -Law No. 18/2003, Road Transport Contract  WT/ACC/TLS/5  
Decree -Law No. 4/2004, Water Supply for Public Consumption  WT/ACC/TLS/9  
Decree -Law No. 17/2004, Postal Services  WT/ACC/TLS/5  
Decree -Law No. 18/2004, Regulation on Private Health Services  WT/ACC/TLS/5  
Decree -Law No. 5/2006, Certificatio n of Air Transport Operators  WT/AC C/TLS/5  
Law No. 6/2005, Regime for the Licensing, Oversight and Regulation of Insurance 
Companies and Insurance Intermediaries  WT/ACC/TLS/5  
Public Instruction No. 1/2007, Licensing of General Insurance Companies  WT/ACC/TLS/5  
Public Instruction No. 2/2007, Licensing of Insurance Intermediaries  WT/ACC/TLS/5  
Government Decree No. 9/2008, Regulation of Mobile Telecommunication Network 
Services  WT/ACC/TLS/7  
Decree -Law No. 6/2009, Regulation on Recreational and Social Gambling  WT/ACC/TLS/5  
Decree -Law No. 7/2009, Regulati on on Restaurants and Similar Establishments  WT/ACC/TLS/5  
Ministerial Diploma No. 1/2009, Regulation on Lottery Franchise  WT/ACC/TLS/5  
Decree -Law No. 21/2009, Funeral Transport Service  WT/ACC/TLS/5  
Public Instruction No. 6/2010, Licensing and Supervision of Other Deposit Taking 
Institutions  WT/ACC/TLS/5  
Decree -Law No. 26/2010, Registration of Sole Entrepreneurs in the Construction 
Sector  WT/ACC/TLS/5  
Decree -Law No. 27/2010, Rules for the Certification and Registration of 
Construction Consultancy Companies  WT/ACC/TLS/5  
Decree -Law No. 5/2011, Environmental Licensing  WT/ACC/TLS/5  
Decree -Law No. 3/2011, Transformation of Micro -Finance Institute into Public 
Company (National Commercial Bank of Timor -Leste (BNCTL))  WT/ACC/TLS/5  
Decree -Law No. 51/2011, Legal Regime for Advertising Activities  WT/ACC/TLS/9  
Decree -Law No. 12/2012, Agency Agreement  WT/ACC/TLS/5  
Decree -Law No. 15/2012, Regulation on Telecommunication Sector  WT/ACC/TLS/5  
Public Instruction No. 1/2013, Licensing and Supervision of Money Transfer 
Operators  WT/ACC/TLS/5  
Ministerial Diploma No. 2/2014, Regulation on Mines and Quarries Activities  WT/ACC/TLS/7  
Law No. 5/2014, Media Law  WT/ACC/TLS/9  
Decree -Law No. 32/2014, Legal Regime for Private Security  WT/ACC/TLS/9  
Decree -Law No. 6/2016, Legal Regime for Licensing, Operation and Control of the 
Activity of Games and Entertainment, Gaming Machines and Traditio nal Games  WT/ACC/TLS/9  
Government Resolution No. 33/2015, Lease of Land for Hotel Construction (Pelican 
Paradise)  WT/ACC/TLS/7  
Decree -Law No. 33/2016, Regulation on Licensing of Electricity Service Provider 
and Tariffs  WT/ACC/TLS/7  
Decree -Law No. 19/2016, Legal Regime for the Licensing and Operation of Travel 
and Tourism Agencies  WT/ACC/TLS/5  
Government Resolution No. 3 6/2017, Amendment to Government Resolution No. 
33/2015, Lease of Land for Hotel Construction (Pelica n Paradise)  WT/ACC/TLS/7  
Decree -Law No. 29/2017, National Information and Communication Technologies 
Agency  WT/ACC/TLS/9  
Decree -Law No. 29/2020, Creation of Timor -Leste Electricity (EDTL, E.P.)  WT/ACC/TLS/15  
Decree -Law No. 40/2020, Creation of the National Authority for the Energy Sector 
(ANE, I.P.)  WT/ACC/TLS/15  
Law No. 12/2021, Mining Code  WT/ACC/TLS/23  
Decree -Law No. 35/2021, Territorial Planning  WT/ACC/TLS/27  
Law No. 4/2022, Legal Regime of Public Professional Associations  WT/ACC/TLS/23  
Decree -Law on E -commerce,  adopted on 18 November 2023  WT/ACC/TLS/32  
Decree -Law on the National Registry of Ships and Vessels , adopted on 18 
November 2023  WT/ACC/TLS/32  
Draft Decree -Law on E -Commerce  WT/ACC/TLS/23  
Draft Decree -Law on National Registry of Ships and Vessels  WT/ACC/TLS/27  
Draft Bar Association Law  WT/ACC/TLS/27  
TRADE AGREEMENTS  
Government Resolution No. 2/2004, Investment Protection Agreement Between 
Timor -Leste and Portugal  WT/ACC/TLS/7  
Government Resolution No. 8/2011, Investment Protection Agreement Between 
Timor -Leste and Germany  WT/ACC/TLS/7  
Government Resolution No. 1 8/2014, Economic Cooperation Between Timor -Leste WT/ACC/TLS/7  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 98 - 
 
  Legislation/Regulation  Legislation Notice  
and China  
Government Resolution No. 45/2016, Approval of Trade Cooperation Between 
Timor -Leste and Kuwait  WT/ACC/TLS/7  
Parliament Resolution No. 1 4/2016, on Ratification of Convention on the 
Settlement of Investment Disputes Between States and Nationals of Other States  WT/ACC/TLS/7  
 
    
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 99 - ANNEX 2(A) 
Gross Domestic Product , 2013-20 20 
(In millions, US Dollars) 
  2013  2014  2015  2016  2017  2018  2019  2020  
Agriculture, forestry and fishing  300.2  296.5  283.4  279.6  271.3  279.2  286.1  293.6  
Mining and quarrying  1.6 1.6 1.6 1.6 1.7 1.5 342.6  282.0  
Extraction of crude petroleum and natural gas  0.0 0.0 0.0 0.0 0.0 0.0 341.3  281.5  
Other mining and quarrying  1.6 1.6 1.6 1.6 1.7 1.5 1.3 0.5 
Manufacturing and other industry*  11.2 12.1 16.4 19.1 25.9 26.3 37.9 33.4 
Of which: manufacturing  10.3 11.3 15.5 18.1 24.8 25.5 37.2 33.0 
Construction  255.4  225.2  274.0  293.7  203.5  215.4  237.1  167.8  
Wholesale and retail trade, transportation and storage, accommodation and food services  276.1  283.9  290.9  309.8  288.5  260.7  287.8  247.0  
Information and communication  41.0 21.7 36.5 41.4 40.0 41.5 55.1 60.9 
Financial and insurance activities  11.4 12.5 11.9 14.5 23.6 21.6 31.8 25.5 
Real estate activities  155.1  177.7  180.7  187.0  195.7  189.6  193.0  191.3  
Professional, scientific, technical, administration and support services  42.2 49.8 50.2 48.6 51.3 41.2 38.3 17.5 
Public admin., defence, education, human health and social work activities  310.0  364.0  385.6  405.0  442.4  471.3  470.5  472.5  
Other service activities  63.0 59.6 57.6 64.4 63.2 50.6 49.8 35.2 
Equals: Value Added , Gross, at factor cost  1467.1  1504.6  1588.8  1664.7  1607.1  1599.0  2030.0  1826.8  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 341.3  281.5  
Non-oil sector  1467.1  1504.6  1588.8  1664.7  1607.1  1599.0  1688.7  1545.3  
Plus: Taxes less Subsidies on products  35.2 35.6 9.6 7.5 4.1 -3.6 14.7 45.3 
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 2.4 25.2 
Non-oil sector  35.2 35.6 9.6 7.5 4.1 -3.6 12.2 20.1 
Equals: G ross Domestic  Product  (Production)  1502.3  1540.2  1598.4  1672.1  1611.3  1595.4  2044.7  1872.1  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 343.7  306.7  
Non-oil sector  1502.3  1540.2  1598.4  1672.1  1611.3  1595.4  1701.0  1565.4  
Statistical Discrepancy  -19.0 9.2 -4.0 -24.1 -30.8 -31.6 3.3 30.1 
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Non-oil sector  -19.0 9.2 -4.0 -24.1 -30.8 -31.6 3.3 30.1 
GDP 1483.3  1549.3  1594.4  1648.1  1580.4  1563.8  2047.9  1902.2  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 343.7  306.7  
Non Oil Sector  1483.3  1549.3  1594.4  1648.1  1580.4  1563.8  1704.2  1595.5  
* Electricity and gas ; plus water supply; sewerage, waste management and remediation activities  
Source:  National Account, General Directorate of Statistics, Ministry of Finance . 
 
    
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 100 - ANNEX 2( B) 
Balance of Payments, 2013 -2020 
 (In thousands, US Dollars ) 
  2013  2014  2015  2016  2017  2018  2019  2020  
Current Account Exclude other primary 
income  658,458  723,125  781,145  768,356  705,226  701,274  623,306  - 
I. Current Account  2,391,665  1,093,840  203,619  544,484  283,529  191,193  132,949  84.918  
A. Goods and Services  1,050,674  1,196,707  1,217,997  1,114,985  958,108  937,898  923,029  316.731  
1. Goods, fob  619,722  602,962  635,394  546,462  614,819  588,568  566,498  135.987  
2. Services  430,952  593,745  582,603  568,523  343,288  349,330  356,530  452.717  
B. Primary Income   3,328,249  2,134,183  1,296,807  544,079  735,327  842,632  1,126,451  296.627  
1. Compensation of employees  3,946  1,316  927  477  1,821  2,685  2,144  4.265  
2. Investment income  274,180  315,901  311,116  319,730  311,809  329,866  372,340  292.363  
3. Other primary income (income from 
JPDA), credit  3,050,123  1,816,965  984,764  223,872  421,697  510,081  756,255  - 
C. Secondary Income  114,090  156,364  124,809  26,422  60,748  95,927  70,474  64.814  
II. Capital account, Exclude Reserves  20,130  13,745  29,006  47,400  34,030  51,554  25,825  12.433  
III. Financial account  2,564,102  1,378,097  32,214  485,480  498,426  249,367  20,982  271.944  
IV. Grand Total (I+II+III)  152,308  270,513  264,839  11,604  248,927  109,728  137,791  199.459  
V. Errors and omissions  44,245  105,764  45,064  145,194)  14,556  19,747  155,406  199.216  
VI. BOP Position (IV+V)  196,553  376,277  219,775  156,797  263,483  129,474  17,615  243 
VII. Change in Reserve Assets  196,553  376,277  219,775  156,797  263,483  129,474  17,615  243 
a) Reserve Assets Position  686,994  311,467  437,867  280,952  544,435  673,909  656,295  656.537  
b) Change in Reserve Assets+Net Portfolio 
Investment Assets Transaction from 
Sovereign wealth Fund (Petroleum Fund)  2,586,911  1,384,373  68,985  860,858  76,905  66,118  -251,625  489.469  
c) Sovereign Wealth Fund (Petroleum 
Fund) Assets Position Value as of end -
period  14,952,099  16,538,618  16,217,573  15,844,327  16,799,313  15,822,994  17,691,816  19.990  
VIII. Errors and omissions  6.8 16.7 6.7 24.8 2.25  3.10  25.1 13.9 
Source:  Central Bank of Timor -Leste.  
 WT/ACC/SPEC/TLS/5/Rev.3  
 
- 101 - 
 
   
ANNEX 2( C) 
Trade in Goods and Services , 2013-2020  
In millions,  US Dollars  
  2013  2014  2015  2016  2017  2018  2019  2020  
Total exports of 
goods and services  77.9 66.2 48.5 51.8 38.2 45.6 39.6 22.4 
Total imports of 
goods and services  1033.5  1131.5  906.9  937.6  871.2  943 872.10 742.7  
 Total Trade  1,111.40  1,197.70  955.40  989.40  909.40  988.60  911.70  765.10  
Source:  SNA, General Directorate of Statistics, Ministry of Finance . 
Exports and Imports of Goods and Services, 2013 -2020 
In millions, US Dollars  
  2013  2014  2015  2016  2017  2018  2019  2020  
Exports                 
 Goods  27.0 15.8 12.0 25.4 11.0 15.6 16.0 9.4 
 Services  60.3 51.8 36.5 27.2 21 21.8 14.9 5.8 
Imports                 
 Goods  395.5  432.3  484.7  534.0  542.2  473.3  504.0  495.6  
 Services  482.7  546.9  422.2  446.6  352.3  447.2  356.9  292.4  
Source:  SNA, General Directorate of Statistics, Ministry of Finance.  
Composition of Exports and Imports of Goods and Services, 2013 -2020 
In millions, US Dollars  
  2013  2014  2015  2016  2017  2018  2019  2020  
Exports          
Goods  27.0 15.8 12.0 25.4 11.0 15.6 489.1  1633.8  
01 Animal & Animal Products  0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
02 Crops & Vegetables  26.4 15.2 10.7 24.0 9.7 14.0 14.1 8.3 
03 Edible fats & oils  0.1 0.1 0.3 0.1 0.1 0.2 0.1 0.1 
04 Foodstuffs  0.0 0.0 0.0 0.0 0.0 0.5 0.3 0.0 
05 Mineral products (Petroleum 
Oil and Gases)  0.4 0.5 0.9 1.0 0.9 0.7 473.8  1624.9  
06 Chemicals & Allied  0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 
07 Plastics / Rubbers  0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 
08 Wood & Wood Products  0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.1 
09 Base metals  0.0 0.0 0.0 0.0 0.3 0.1 0.2 0.3 
10 Vehicles & transport eqpt.  0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 
Services  60.3 51.8 36.5 27.2 21.0 21.8 14.9 5.8 
a. Transport  0.6 0.8 1.5 1.8 1.8 2.2 3.4 0.7 
b. Travel  36.7 25.2 28.1 20.7 15.4 14.1 8.6 3.8 
c. Insurance and pension 
services  1.0 0.5 0.0 0.0 0.1 0.6 0.5 -0.2 
d. Telecommunications, 
computer and information 
services  18.2 24.4 5.1 2.3 1.9 1.2 0.9 1.0 
e. Government goods and 
services  3.7 0.9 1.8 2.4 1.9 3.6 1.5 0.4 
Imports          
Goods  395.5  432.3  484.7  534.0 542.2 473.3 553.4  
Oil sector  0.0 0.0 0.0 0.0 0.0 0.0 49.3 228.0  
Non-oil sector  395.5 432.3 484.7  534.0 542.2 473.3 504.0 495.6  
Merchandise imports, f.o.b.  394.0 430.4 482.8  531.4 539.3 470.3 501.7 493.8  
Merchandise imports, adjusted, 
c.i.f. 438.1 475.6 536.8  591.1 599.7 522.9 558.0 549.1  
Merchandise imports in trade 
statistics, c.i.f.  398.3 432.4 488.0  537.4 545.1 475.4 507.3 508.4  
01 Animal & Animal Products  12.2 15.8 16.7 21.8 36.9 33.8 31.0 28.0 
02 Crops & Vegetables  21.8 34.1 33.1 44.8 47.4 48.6 49.7 42.0 WT/ACC/SPEC/TLS/5/Rev.3  
 
- 102 - 
 
    2013  2014  2015  2016  2017  2018  2019  2020  
03 Edible fats & oils  3.0 3.3 4.5 4.5 9.8 10.8 11.8 10.6 
04 Foodstuffs  43.8 43.0 50.1 69.9 66.7 63.1 60.7 66.2 
05 Mineral products   82.2 93.8 134.9  133.3  137.9  120.1  139.7  148.5  
06 Chemicals & Allied  10.3 14.0 11.1 16.1 17.2 19.0 19.7 16.1 
07 Plastics / Rubbers  5.2 7.4 10.6 12.3 11.7 10.9 11.3 12.4 
08 Raw Hides & Skins, Leather  0.1 0.2 0.3 0.4 0.4 0.5 1.7 3.3 
09 Wood & Wood Products  1.8 2.1 3.7 3.3 2.8 2.6 3.1 3.2 
10 Paper and paperboard  4.4 6.4 4.4 5.5 5.4 5.3 6.9 4.6 
11 Textiles  28.4 21.6 16.2 10.3 12.8 9.3 8.7 11.7 
12 Footwear / Headgear  2.1 2.0 3.6 4.2 4.1 4.3 7.4 8.4 
13 Stone / Glass  3.9 4.2 4.2 6.3 5.6 4.0 5.2 4.9 
14 Precious stones & metals  0.3 15.7 0.4 0.4 0.0 0.0 0.0 0.1 
15 Base metals  23.5 21.5 28.6 37.6 28.2 20.5 22.7 23.7 
16 Machinery / Electrical  78.7 57.7 77.3 79.2 71.4 48.6 49.9 54.7 
17 Vehicles & transport eqpt.  62.0 72.7 72.1 71.7 74.0 60.7 64.3 52.7 
18 Apparatus & instruments  3.0 3.0 3.0 4.6 3.7 3.7 3.3 5.0 
19 Arms and ammunition  0.9 0.7 0.5 0.4 0.0 0.2 0.2 0.3 
20 Miscellaneous  11.4 14.1 12.7 10.9 9.8 9.2 8.9 12.1 
Adjustment for unrecorded and 
underreported imports  39.9 43.3 48.8 53.8 54.6 47.5 50.6 40.7 
Rate of adjustment  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Services  482.7 546.9 422.2  446.6 352.3 447.2 563.4 1142.8  
a. Maintenance and repair 
services n.i.e.  0.0 0.0 0.0 0.0 0.0 0.0 110.1 509.5  
b. Transport  41.6 43.4 57.4 63.8 61.1 51.2 62.5 75.2 
c. Travel  41.6 47.7 60.6 67.2 55.6 42.3 45.8 15.1 
d. Construction  73.0 200.3 90.2 92.3 24.9 190.7 174.5 393.7  
e. Insurance and pension 
services  11.6 11.8 13.9 15.4 15.5 13.6 14.8 15.5 
f. Financial services  -4.0 -10.3 -1.8 8.1 7.5 8.0 8.4 7.5 
g. Charges for the use of 
intellectual property n.i.e. 0.0 0.1 0.1 1.2 0.4 0.0 0.6 0.0 
h. Telecommunications, 
computer and information 
services  23.2 13.0 10.1 7.4 6.2 3.8 5.7 3.0 
i. Other business services  108.1  101.5  70.1 75.9 68.4 31.2 43.5 28.1 
j. Government goods and 
services n.i.e.  187.6  139.5  121.5  115.3  112.7  106.3  97.4 98.2 
Source:  National Account, General Directorate of Statistics, Ministry of Finance . 
   WT/ACC/SPEC/TLS/5/Rev.3  
 
- 103 - 
 
  ANNEX 3 
Doing Business Indicators  
For ease of Doing Business, Timor -Leste ranked 181st out of 190 countries covered by the World 
Bank's Doing Business indicators for 2020 :  
 
Indicator  Rank in 2020  
Starting a business  68 
Trading Across Borders  107 
Access to electricity  126 
Ease of paying taxes  136 
Registering property  187 
Resolving insolvency  168 
Contract enforcement  190 
The following developments have been registered with respect to specific Doing Business indicators:  
• E nforcing Contracts : Aiming at improving this indicator, the Government sent the National 
Parliament a package of three legislative initiatives in 2019. In 2021, the National Parliament 
approved this package of three legislative initiatives, which have the potential to improve contract enforcement:  
• Resolution authorizing the adoption by Timor -Leste of the 1958 New York Convention on 
the Recognition and Enforcement of Foreign Arbitral Awards (approved by Resolution No. 8/2021 of 17 March 2021);  
• Law on National and International Arbitration (enacted b y Law No. 6/2021 o f 
31 March  2021 on the Legal Regime of Voluntary Arbitration and the First Amendment t o 
the Civil Procedure Code); and  
• Law that simplifies the  procedures of civil and commercial cases to speed up their 
management (approved by Law No. 3/2 021 of 2 March 2021 that authorizes 
the Government to change the Civil Procedure Code);  
• Getting Electricity : Real progress from 2015 to 2019 was made with regard to this indicator, 
as shown by World Bank documents. This indicator has the potential to furt her improve as the 
institutional reform projects for the sector were approved. Among others, a new regulating body for the energy sector is currently being installed (please refer to Decree- Laws Nos. 
29/2020 of 22 July 2020 and 40/2020 of  25 September  2020);  
• G
etting Credit : The Government, as sole shareholder to the National Commercial Bank of 
Timor -Leste (hereinafter referred to as BNCTL), has recently approved the state general 
budget for 2021 to further capitalize the bank with a total amount of US$ 40 million , with an 
aim to improve mechanisms and access to credit with lower interest rates. Such credit aims to improve access for the private sector, especially from micro, small and medium -sized 
enterprises.  
In addition, to facilitate the private sector 's access to credit, the BNCTL signed an  agreement with 
the Public Institute for Business Development Support (hereinafter referred to as IADE) to assist 
young entrepreneurs to quickly obtain credit to start their business.  
Law No. 7/2020 of 28 August 2020 on Preventing and Combatting Corruption, aligned with the UN 
Convention against Corruption (UNCAC), was approved by the Parliament, creating the expectation 
of a more effective fight against corruption.  
An integrated Project on Unique Identifier of Timorese citizens and residents was launched 
by Government Resolution No. 9/2020 of 19 March 2020, aiming at bettering the overall provision 
of services and creating the basis for an electronic government. This has the potential to improve 
transparency and  reduce red tape for businesses.   WT/ACC/SPEC/TLS/5/Rev.3  
 
- 104 - 
 
  ANNEX 4 
Legislative Framework for C ombatting Corruption  
Title VI of the Penal Code on the Crimes Practiced in the Performance of Public Functions, in 
Article  292 on Passive Corruption for Illicit Action, provides that, an employee who, by themself, or 
through a  personal intermediary, with their consent or ratification, requests or accepts, for themself 
or for a  third party, without being due, a patrimonial or non -patrimonial advantage, or promises, to 
any person, an act or omission contrary to the duties of the position, even prior to that request or 
acceptance, is punishable with a prison sentence of 3 to 15 years. An agent who, before the practice of the fact, voluntarily repudiates the offer or promise that they accepted,  or restores the advantage, 
or, in the  case of a fungible thing, its value, is exempt from penalty. The penalty is especially 
mitigated if the agent concretely assists in the collection of the decisive evidence for the identification 
or the  capture of othe r responsible persons .  
 
Articles 5 and 19 of National Parliament Resolution No. 12/2019 of 13 March 2009 on the Code of 
Conduct of Members of the Government on Preventing and C ombating Corruption provide that 
Government members should make a commitment to prevent and combat corruption, especially 
private corruption, extortion or bribery, and are prohibited from: (a) offer ing, accept ing or facilitating  
the payment of a bribe; (b) offer ing or authoriz ing, directly or indirectly, an undue advanta ge for 
any person or public agent that involves direct personal gain or that of intermediary third parties. 
Members of the Government must communicate to the Public Prosecutor the acts that may constitute 
attempts at corruption. They may not receive any of fers in cash and may only receive offers of 
symbolic value that do not exceed the value of US$ 250. The value of the offers is recorded in 
a specific heading of all offers from the same person, whether natural or legal, during the course of 
a calendar year . At the same time, members of the Government may receive offers made between 
States, the refusal of which can be interpreted as a breach of interinstitutional respect.  
 
On the institutional level, several independent supervisory bodies have been created,  particularly:  
• The Anti -Corruption Commission (hereinafter referred to as CAC) , which  has played an active 
role in monitoring and holding public officials accountable and obtaining important results in 
terms of investigations. In addition to the  CAC, ther e is the Ombudsman for Human Rights 
and Justice (PDHJ), with a mandate in the areas of human rights and good governance. Its 
functions include receiving and investigating complaints from citizens and the public against 
the public administration. The  PDHJ i s also required to refer complaints that potentially involve 
criminal charges to the CAC or to the Office of the General Prosecutor. The PDHJ and the CAC 
also play a broader role, which includes raising awareness on corruption issues and providing 
recommen dations to the Government on good governance practices.  
• The General Inspection of State (IGE as the control and inspection body of the Public Administration ), whose mission is to control the financial management and resource use in 
the Public Administration services.  
• An independent Chamber of Accounts of the Administrative, Fiscal and Accounting High Court, 
which was established in 2012 with a mandate to monitor the lawfulness of public expenditure 
and to audit state accounts.  
• The Prosecutor General/Public Prosecutor's office , which  is mandated to investigate and 
prosecute  criminal offences, including corruption -related crimes, assisted by the body of 
criminal police, working in the  field of criminal investigation (such as the Criminal Investigation 
Police Unit and the Scientific, Investigation and Criminal Police Unit (PCIC)).  
Thus, Timor -Leste has built a system to prevent and combat corruption efficiently, at all levels. A t 
the same time,  civil society contributes to and exercise s a sharpen ed scrutiny over eventual 
corruption cases in general . 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 105 - 
 
  ANNEX 5 
Summary of FDI Regulations in Timor -Leste  
Laws and 
Regulations  Sector 
Restrictions Restriction on Land 
Ownership  Performance 
Requirements  Investment Incentives  
Private 
Investment 
Law (PIL) 
No. 15/2017  
Government Decree No. 
2/2018, 
Regulation 
and 
procedure for 
private investment 
Other 
relevant laws 
– e.g., 
Company 
Act, Mining 
Code, etc . Restricted 
sector s: 
Criminal 
activities; 
activities 
related to 
environmental 
protection 
areas; activities 
related to offensive of 
traditional 
customs; arms 
and 
ammunition distribution; 
postal & 
courier 
services; 
funeral service 
activities  
Other 
sectors :  
Refer to 
Negative List State or private 
land: 
Lease right betwee n 5 
and 50 years. 
Renewable up to  a 
maximum of 150 
years (Government 
Decree- Law No.  
19/2004 "Legal 
Regime for Leasing of State Properties and 
Assets ") 
State or private 
land: 
Lease up to maximum 
of 50 years, 
renewable for period 
of 25 up to 100 years 
(PIL, Article 25 ) – 
applicable to private investments issued 
with Declaration of Benefit (DoB) or 
Special Investment 
Agreement (SIA)  Job creation to 
local; knowledge transfer (training) 
to local; technology 
transfer ; 
Local content requirements  (only 
for min ing 
activities);  
No export 
performance requirements.  Productive sectors :  
Agriculture, fisheries, 
tourism, processing industry  
Declarations of Benefits (DoB) and Special 
Investment Agreement 
(SIA)  
Tax and non- tax 
incentives : 
Minimum values for investment or 
reinvestment: 
- US $50,000 for a 
national investor  
- US $500,000 for a 
foreign investor  
- US $250,000 for a joint 
venture  
Support to investors : 
- Granting 
authorizations, visas, 
permits & registrations  
- Facilitation services  
 
   
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 106 - ANNEX  6 
State -owned enterprises 
No. Name  Sector  Establishing l egislation  Capital ization and ownership 
structure , amount of public 
transfers  Purpose and mandate   
1. Radio and 
Television of 
Timor -Leste 
(RTTL, E .P.) Radio and 
Television  Decree -Law No. 42/2008 of 
26 November 2008 Article 6 of the Decree -Law 
established its statutory capital of 
US$ 8,335,031.  Radio and Television of Timor -Leste , E.P. (RTTL, Tetum) is a 
national radio and television broadcaster in Timor -Leste.  
2. Timor Gas and 
Petroleum (Timor Gap, 
E.P.) Oil and Gas  Decree -Law No. 31/2011  on 
"Timor Gap – Timor Gas 
and Petroleum, Public Enterprise " Article 6 of the Decree -Law 
identifies that the initial capital of 
the company (paid from the state 
budget) is US$ 2,500,000. The yearly amount public transfers var y 
depending on the work program and budget alloc ated to a specific year. 
Further, Timor Gap EP also has 
other source of project financing 
through public and private loans. Private and public companies can compete to acquire petroleum 
contracts. In case a petroleum contract is granted to a private 
compan y, the State has the right to participate in the contact 
through its SOE (normally in the form of a joint venture) with a 
participating interest of up to 20%.  
 
The operational portfolio of Timor Gap E.P. covers upstream, 
downstream and petroleum support se rvices sector, which 
makes this investment complex and attractive. In the upstream sector, all projects are now at the exploration stage, not yet 
producing any profit. However, from in other sectors 
(downstream and services), Timor Gap EP now has the 
oppor tunities to create profits. The general policy of the 
Government is to invest in the exploration and exploitation of petroleum resources, while at the same time creating a strong 
service through downstream and other support services, which 
will lead to cos ts effectiveness and increased profitability . 
3. National 
Airport Administration 
and Air 
Navigation of 
Timor -Leste 
(ANATL, E .P.) Aviation  Government Decree No. 
8/2005 of 16 November 2005.  Article 7 of the Government Decree 
provides that its statutory capital is to be defined through joint 
Ministerial Order  by the Minister of 
Planning and Finance and the Minister of Transport and Communications. The legal 
competence to be contributed by  
the respective Minister  is up to a 
maximum of US$ 20 million and any 
other amount beyond this defined 
amount is to be appro ved by the 
Council of Ministers and or the 
Parliament.  National aviation agency in charge of exploring and developing 
airports and air navigation infra -structure. It is bestowed with 
financial administrative autonomy and its own patrimony.  
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 107 - No. Name  Sector  Establishing l egislation  Capital ization and ownership 
structure , amount of public 
transfers  Purpose and mandate   
4. Electricity of 
Timor -Leste 
(EDTL, E .P.) Electricity 
and Energy  Decree -Law No. 29/2020  on 
" Creation of Timor -Leste 
Electricity (EDTL, E.P.)"  Article 10 of the Decree -Law 
established that the statutory 
capital of this  enterprise is US$ 
94,424,461.  The objec tive of the EDTL, E.P. is to create a set of restructuring 
measures in reforming the electricity sector, aimed at expanding the supply of electricity and modernizing the National Electricity 
System. This includes implementing a management system with 
the goal of improving the public service provided by the EDTL 
and raising standards and quality of power supply and its reliability at affordable prices, considering the feasibility and 
sustainability of its operation. The EDTL, E.P. is authorized to 
propose, m onitor and ensure the execution of the national 
energy sector policy, ensuring the sustainable and integrated 
management of the production, transmission, distribution and 
sale of electricity, namely through the establishment and provision of public electri cal energy supply services. It carries 
out its business activities by implementing the social and economic policy of the Government, including (i) providing 
support to the Government in the establishment of the energy 
resources policy; (ii) proposing a National Electrification Plan to 
the Government; (iii) proposing the creation and maintenance of 
the registration of electricity distribution, easement zones and 
the National Electricity System; (iv) promoting the efficient use 
of electric energy; (v) ensurin g the public service supply of 
electricity for consumption, through the operation and management of the National Electricity System throughout the country; (vi) promoting a continuous quality improvement of 
electricity supply, through plans and programmes; (vi) 
implementing an integrated system between the various 
electricity supply infrastructures; etc .   
5. Water of 
Timor -Leste 
(BTL, E .P.) Water and 
Sanitation  Decree -Law No. 41/2020 of 
25 September 2020 . Article 10 of the Decree -Law sets its 
statutory capital as US$ 
12,880,000.  Created to promote greater efficiency and sustainability in the 
implementation of the Government's strategy in providing water and sanitation services to the public. The company 's mission is 
to assist the Government in the implementation of national 
policies for water and sanitation trough the integrated and 
sustainable management of water and sanitation related services; to increase a universal and equitable access to safe 
drinking water and sanitation ser vices to all populations in all 
territories; to maintain regular, continuous and efficient water 
supply and sanitation services; to promote affordable water and 
sanitation services that contribute to economic development and 
social, environmental and technological advancement; to 
improve public health; and to promote industrial, commercial 
and research development.   
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 108 - No. Name  Sector  Establishing l egislation  Capital ization and ownership 
structure , amount of public 
transfers  Purpose and mandate   
6.  Mining 
Company of 
Timor -Leste 
(Companhia Mineira de 
Timor -Leste, 
S.A.) Mining  Decree -Law No. 43/2022 of 
8 June 2022 on "Mining 
Company of T imor-Leste"  
 Article 4(1)(2) of the Decree -Law 
establishes that the initial capital stock of the company, which 
established this company in the 
form of a JSC, fully subscribed and 
paid up by the State, is 
US$600,000. The amount of public 
transfers vary dep ending on the 
work program and budget allocated to a specific year. This company also has other sources of project 
financing, through public and private loans . 
 
The investment portfolio will be 
expanded as the investment grow s. 
 
Being fully owned by the State at 
the moment of its creation, "any transfer of shares of CMTL, S.A. to 
an entity that is not, directly or 
indirectly, controlled by the State, 
must be authorized by the Council 
of Ministers, upon reasoned 
proposal by the General 
Assembly/Shareholder s Meeting of 
the CMTL, S.A." .  According to Article 3(1)(2) of the Decree -Law, the purpose and 
mandate of the company "shall be to conduct mining activities as 
defined by law, including reconnaissance, prospecting and 
exploration, evaluation, development, exploitation, processing, 
transportation and marketing of minerals, as well as mine 
closure activities". In pur suing its objective, CMTL, S.A. may 
undertake complementary or accessory activities to mining activities and the provision of services related to mining 
activities, including, in particular, technical, commercial and 
management consultancy services in the mining sector. The 
operational portfolio of this company covers upstream, 
downstream, and mineral support services.  
 The general policy of the Government is to invest in the 
exploration and exploitation of the mineral  resources  as an 
alternative revenue re source to the State, while at the same 
time creating a strong service through other mineral support 
services which will lead to cost effectiveness and increas ed 
profitability of the company. 
7. National 
Commercial Bank of Timor -
Leste (BNCTL, S.A.) Commercial 
Banking  Decree -Law No. 3/2011 of 
26 of January 2011 on 
"Transformation of Micro -
Finance Institute into Public Company (National 
Commercial Bank of Timor Leste (BNCTL)) " The Decree -Law transformed the 
Micro -Finance Institute, created by 
the UNTAET Executive Order No. 
2001/8, into a JSC/Corporation fully 
owned by the State. Article 5(1)(2) 
of Decree- Law No. 3/2011 
establishes that the initial capital 
stock of the company, fully 
subscribed  and paid up by the State 
is of US$5,000,000.00. The General 
Assembly is competent to decide 
about eventual increases of the 
capital . According to Article 5( 1)(2) of Decree -Law No. 3/2011 , the 
BNCTL, S.A. aims at providing bank and financial services in order to help reduce poverty and favour the development of 
economic activities throughout Timor -Leste. In complying with 
this goal, BNCTL, S.A. may carry out such bank activities on 
terms defined in the law and its business license.   
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 109 - No. Name  Sector  Establishing l egislation  Capital ization and ownership 
structure , amount of public 
transfers  Purpose and mandate   
8.  The Company 
for the 
Management of 
Industrial 
Parks (GESPIN, 
S.A.) Industrial 
Parks Decree -Law No. 70/2022 of 
28 September 2022 on  
"GESPIN -Management of 
Industrial Parks, S.A."  The c ompany , esta blished as a JSC,  
has an initial capital stock, fully 
subscribed and paid up by the 
State, of US$  600,000. The transfer 
of shares of GESPIN, S.A. must be authorized by the Council of 
Ministers upon reasoned proposal of 
the member of the Government 
responsible for the area of industry.  GESPIN, S.A. ensures the exercise of competences, namely of an 
economic, financial, patrimonial and staff management nature, necessary for the regular functioning of the industrial parks 
assigned to it, as well as all activities that are compl ementary, 
subsidiary or accessory to the continuation of its activity. As per 
Article 4(1) of the Decree -Law, as an entity managing industrial 
parks, GESPIN S .A., in particular: (i) carries out all operations 
necessary for the installation of an industrial  park; (ii) ensures 
provision of common services to support industrial park users; (iii) develops actions to promote and advertise an industrial park; (iv) ensures the necessary works for the construction of 
the industrial park; and (v) ensures the regular  operation of the 
industrial park.  
 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 110 - 
 
  ANNEX  7 
Continuing E ffect of Laws that had been in f orce before Independence  
Article  165 of t he Constitution of Timor -Leste (in force since 20 May 2002) provides that laws and 
regulations  which  had been in force in Timor -Leste before its independence from Indonesia shall 
continue to be applicable to all matters except to the extent that they are inconsistent with 
the Constitution or the principles contained therein.  
Article  1 of Law No. 2/2002 "On Interpretation of Applicable Law" of 19 May 2002 provides that 
legislation applicable in Timor -Leste on 19 May 2002 shall remain in force mutatis mutandis  for 
everything that is not contrary to the Constitution and principles enshrined therein.  
It is possible that laws (Regulations, Directives, Executive Orders, and Notifications) enacted by the United Nations Transitional Administration in East Tim or (UNTAET) between  October 1999 and 
May 2002 may still be in force. In most cases, UNTAET Regulations have been repealed by 
subsequent  Parliamentary Laws or Decree -Laws. Where a UNTAET Regulation has not been expressly 
repealed, but it is inconsistent with a subsequent Parliamentary Law or Decree -Law, 
the Parliamentary Law or Decree -Law prevails over the UNTAET Regulation. This rule would also 
apply to UNTAET legislation that contravenes the Constitution.  
The first UNTAET Regulation, Regulation No. 1999/1 of 27 November 1999 on the Authority  of 
the Transitional Administration in East Timor provides in Article 3.1 that, until replaced by UNTAET 
regulations or subsequent legislation enacted by democratically established institutions of East Timor, the laws ap plicable in Timor -Leste prior to 25 October 1999 shall apply as long as they do 
not conflict with the rules set forth in Article 2 nor with the fulfillment of the mandate conferred to 
UNTAET under Resolution No. 1272 (1999) of the Security Council of the U N or with this or other 
regulations and directives enacted by the Transitional Administrator.  
This means that it is possible that an Indonesian Law in force in Timor -Leste on 25 October 1999 
still applies, if it has not been replaced by an UNTAET Regulation between 25 October 1999 and 
19 May 2002, or by Timor -Leste 's legal statutes. Where an Indonesian Law has not been repealed 
but it is inconsistent with a subsequent Parliamentary Law or Decree -Law, then the Parliamentary 
Law or Decree -Law prevails to the extent of any inconsistency with an Indonesian Law.  
The continuing application of Indonesian or UNTAET laws was confirmed by Law No. 10/2003 of 
20 November 2003 "On the Interpretation of Article 1 of Law No. 2/2002 of 7 August 2002, and 
Sources of Law",  which provides in Article 2 that: (I) Legislation is the only immediate source of law  
in Timor -Leste; (ii) the Laws are generic provisions enacted by the competent organs of the State;  
and, (iii) the sources of law in Timor -Leste are: (a) the Constitution; (b) Laws emanating from 
the National Parliament and from the Government; and , (c) subsidiarity, regulations and other legal 
instruments from UNTAET as long as these are not repealed, as well as Indonesian legislation under 
the terms of Article 1 of the pres ent law.  
With the approval  of the new Civil Code of Timor -Leste (Law No.  10/2011 of 14 September 2011, 
which replaced the prior Indonesian Civil Code that had been widely applied), it is not common to find Indonesian legislation applied.  
   WT/ACC/SPEC/TLS/5/Rev.3  
 
- 111 - 
 
  ANNEX 8(A) 
Classification of Economic Activities  in Timor -Leste – Low Risk  (revoked  by Decree-Law 
No. 83/2022 of 23 November 2022)  
Code (Timor -Leste 
classification)  Activity  
C MANUFACTURING INDUSTRIES  
13  Manufacture of textiles  
131  1310  Preparation, spinning, weaving and finishing of textiles  
139  Manufacture of other textiles  
 1391 Manufacture of made -up textile articles, except apparel  
 1392 Manufacture of carpets and rugs  
 1393 Manufacture of rope and nets  
 1394 Wool processing for mattresses  
 1399 Manufacture of other textiles, not specified (n.s.)  
14  Clothing industry  
141  Manufacture of apparel, except fur articles  
 1411 Manufacture of apparel in series  
 1412 Tailor made clothing  
142  1420  Manufacture of fur articles  
143  1430  Manufacture of knitted articles  
16  Wood and cork industries and articles thereof, except furniture; 
Manufacture of basketwork and wickerwork  
161  1610  Sawmilling, plan ning and impregnation of wood  
162  Manufacture of articles of wood, cork, straw and plaiting materials, except furniture  
 1624 Manufacture of basketwork and wickerwork  
18  Printing and reproduction of recorded media  
181  Printing and service activities related to printing  
 1811 Printing of newspapers  
 1812 Other printing  
 1813 Service activities related to printing  
182  1820  Reproduction of recorded media  
32  Other manufacturing industries  
321  Manufacture of jewellery , goldsmiths' jewellery , imitation jewellery  and similar 
articles; coinage  
 3212 Manufacture of imitation jewellery   
322  3220  Manufacture of musical instruments  
323  3230  Manufacture of sports goods  
329  3290  Manufacturing industries, n.s.  
33  Repair, maintenance of metal products, machinery and equipment  
331  Repair and maintenance of metal products, machinery and equipment  
 3311 Repair and maintenance of metal products (except machinery and equipment)  
 3312 Repair and maintenance of machinery and equipment  
 3313 Repair and maintenance of electronic and optical equipment  
 3314 Repair and maintenance of electrical equipment  
 3315 Repair and maintenance of transport equipment, except vehicles  
 3316 Repair and maintenance of other equipment  
332  3320  Installation of industrial machinery and equipment  
F  CONSTRUCTION  
41  Real estate development (development of building projects); building 
construction  
411  Real estate development (development of building projects)  
G  WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND 
MOTORCYCLES  
45  Trade, maintenance and repai r of motor vehicles and motorcycles  
451  4510  Motor Vehicle Trade  
453  4530  Motorcycle Parts & Accessories Trade  
454  Trade in motorcycles, parts and accessories  
 4541 Wholesale and retail trade in motorcycles, parts and accessories  
46  Wholesale trade (including agents) other than motor vehicles and 
motorcycles  
461  4610  Wholesale trade agents  
464  Wholesale of consumer goods, except food, beverages and tobacco  
 4641 Wholesale of textiles, clothing and footwear  
 4642 Wholesale of electrical household appliances and radio and television goods  
 4649 Wholesale of other consumer goods  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 112 - 
 
  Code (Timor -Leste 
classification)  Activity  
465  Wholesale trade of information and communication technology (ICT) equipment  
 4651 Wholesale of computers, computer peripheral equipment and software  
 4652 Wholesale of electronic and telecommunications equipment and their parts  
 4653 Wholesale of agricultural machinery and equipment  
 4659 Wholesale of other machinery and equipment  
466  Other specialized wholesale trade  
 4663 Wholesale of rough wood and derived products  
 4664 Wholesale of construction materials, hardware, tools and equipment and 
accessories for plumbing  
 4669 Wholesale of waste and scrap and other products n.s.  
469  4690  Non-specialized wholesale  
47  Retail sale, except motor vehicles and motorcycles  
471  Retail sale in non -specialized stores  
 4719 Retail sale in non -specialized stores without food, beverages or tobacco 
predominating  
474  Retail sale of information and communication technology (ICT) equipment, in 
specialized stores  
 4741 Retail sale of computers, peripheral units, software and te lecommunications 
equipment, in specialized stores  
 4742 Retail sale of audiovisual equipment, in specialized stores  
 4762 Retail sale of discs, CDs, DVDs, cassettes and similar items, sports goods, games 
and toys, in specialized stores  
477  Retail sale of other goods, in specialized stores  
 4771 Retail sale of clothing, footwear, leather and travel articles, in specialized stores  
 4773 Retail sale of other new goods, in specialized stores  
 4774 Retail sale of second -hand goods, in specialized stores  
478  Retail sale in stalls, fairs and mobile sales units  
 4781 Retail sale in stalls, fairs and mobile sales units, of agricultural food products  
 4782 Retail sale in stalls, fairs and mobile sales units, of processed food, beverages and 
tobacco  
 4783 Retail sale in stalls, fairs and mobile sales units, of textiles, clothing, footwear, 
luggage and the like  
 4784 Retail sale in stalls, fairs and mobile  sales units, of articles and equipment for 
domestic use  
 4786 Retail sale in stalls, fairs and mobile sales units, of stationery, newspapers and 
sports articles  
 4787 Retail sale in stalls, fairs and mobile sales units, of handicrafts, toys and paints   
 4789 Retail sale in stalls, fairs and mobile sales units, of other products  
479  Retail sale not in stores, fairs or markets  
 4791 Retail sale via mail order or via the Internet  
 4792 Retail sale by other means, not in stores, stalls, fairs or mobile sales units  
H  TRANSPORTATION AND STORAGE  
52  Warehousing and auxiliary transport activities (including handling)  
521  5210  Storage  
53  Postal and courier activities  
531  5310  Postal activities subject to universal service obligations  
532  5320  Other postal and courier activities  
J  INFORMATION AND COMMUNICATION ACTIVITIES  
58  Editing activities  
581  Publishing of books, newspapers and other publications  
 5811 Book publishing  
 5812 Editing lists for consultation  
 5813 Publishing of newspapers, magazines and other periodicals  
 5819 Other editing activities  
582  5820  Software publishing  
59  Cinematographic, video, television program production, sound recording 
and music publishing activities  
591  Cinematographic, video and television program activities  
 5911 Motion picture, video and television production activities and post -production 
techniques for films, videos and television programs  
 5912 Distribution of films, videos and television programs  
 5913 Film and video projection  
592  5920  Sound recording and music publishing activities  
62  Computer consulting and programming and related activities  
620  Computer consulting and programming and related activities  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 113 - 
 
  Code (Timor -Leste 
classification)  Activity  
 6201 Computer programming activities  
 6202 Computer consultancy and management activities and use of computer equipment  
 6209 Other activities related to information technology and computing  
63  Information services activities  
631  Data processing activities, domiciliation of information and related activities; web 
portals  
 6311 Data processing activities, domiciliation of information and related activities  
 6312 Web Portals  
639  Other information service activities  
 6391 Activities of news agencies  
 6392 Other information service activities, n.s.  
L  REAL ESTATE ACTIVITIES  
68  Real estate activities  
681  6810  Buying and selling of real estate  
682  6820  Property Leasing  
M  CONSULTING, SCIENTIFIC, TECHNICAL AND SIMILAR ACTIVITIES  
69  Legal and accounting activities  
691  6910  Legal activities  
692  6920  Accounting and auditing activities; tax consultancy  
70  Activities of social headquarters and management consultancy  
701  7010  Activities of social headquarters  
702  7020  Business and management consultancy activities  
74  Other consulting, scientific, technical and similar activities  
741  7410  Design Activities  
742  7420  Photographic activities  
743  7430  Translation and interpretation activities  
749  7490  Other consulting, scientific, technical and similar activities, n.s.  
N  ADMINISTRATIVE AND SUPPORT SERVICES ACTIVITIES  
77  Rental activities  
771  7710  Vehicle rental  
772  7720  Rental of personal and household goods  
773  Rental of other machinery and equipment  
 7731 Rental of means of transport by sea and river  
 7732 Rental of machinery and equipment for building and civil engineering  
 7733 Rental of office machinery and equipment (includes computers)  
 7734 Rental of other machinery and equipment, n.s.  
774  7740  Lease of intellectual property and similar products, except copyrights  
78  Employment activities  
781  7810  Activities of recruitment and placement companies  
782  7820  Temporary employment agency activities  
783  7830  Other human resources provision  
79  Travel agencies, tour operators, other booking services and related 
activities  
799  7990  Other booking services and related activities  
81  Activities related to buildings, planting and maintenance of gardens  
811  8110  Combined support activities for buildings  
812  8120  Cleaning activities  
813  8130  Planting and garden maintenance activities  
82  Business administrative and support service activities  
821  8210  Administrative and support service activities  
822  8220  Call Center activities  
823  8230  Organization of fairs, congresses and other similar events  
829  Business support service activities, n.s.  
 8291 Packing activities  
 8299 Other business support service activities, n.s.  
R  ARTISTIC, PERFORMING, SPORTS AND RECREATIONAL ACTIVITIES  
90  900  Theater, music, dance and other artistic and literary activities  
 9001 Theater, music, dance and other performing arts activities  
 9002 Artistic and literary creation  
91  910  Activities of libraries, archives, museums and other cultural activities  
 9101 Activities of libraries and archives  
 9102 Activities of museums and historical sites and monuments  
 9103 Activities of zoos, botanists and aquariums and parks and nature reserves  
93  Sports, entertainment and recreational activities  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 114 - 
 
  Code (Timor -Leste 
classification)  Activity  
931  Sports activities  
 9311 Activities of sports clubs  
 9319 Other sports activities  
932  9320  Fun and recreational activities  
S  OTHER SERVICE ACTIVITIES  
94  Activities of associative organizations  
941  Activities of economic, employers and professional organizations  
 9411 Activities of economic and employers' organizations  
 9412 Activities of professional organizations  
942  9420  Activities of trade unions  
949  Other activities of associative organizations  
 9491 Activities of religious organizations  
 9493 Activities of youth and student associations  
 9499 Other activities of associative organizations, n.s.  
95  Repair of computers and personal and household goods  
951  Repair of computers and communication equipment  
 9511 Repair of computers and peripheral equipment  
 9512 Repair of communications equipment  
952  Repair of personal and household goods  
 9521 Repair of televisions and other similar consumer goods  
 9522 Repair of household and other household and garden equipment  
 9523 Repair of furniture and the like for domestic use  
 9529 Repair of watches, jewelry and other personal and household goods  
96  960  Other personal service activities  
 9601 Washing and dry cleaning of textiles and fur  
 9602 Hairdressing and other beauty treatment activities  
 9603 Funeral and related activities  
 9609 Other personal service activities, n.s.  
T  ACTIVITIES OF HOUSEHOLDS EMPLOYING DOMESTIC STAFF AND FAMILY 
PRODUCTION ACTIVITIES FOR OWN USE  
97 - 970 9700  Activities of households employing domestic staff  
98  Activities of production of goods and services by households for own use  
981  9810  Activities of production of goods by households for own use  
982  9820  Activities of production of services by households for own use  
U  ACTIVITIES OF INTERNATIONAL ORGANIZATIONS AND OTHER EXTRA -
TERRITORIAL INSTITUTIONS  
99 - 990 9900  Activities of international organizations and other extra -territorial 
institutions  
Source:  Decree- Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities".  
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 8(B) 
Classification of Economic Activities –  Medium Risk  (revoked  by Decree-Law 
No. 83/2022 of 23 November 2022)  
Code (Timor -Leste 
classification)  Activity  
A AGRICULTURE, LIVESTOCK PRODUCTION, HUNTING, FOREST, FISHING 
AND AQUACULTURE  
01  Agricultural, livestock production, hunting and related services 
activities  
011  Temporary crops  
 0111 Cereals (except rice), dried leguminous plants and oil seeds  
 0112 Rice culture  
 0113 Culture of vegetables, roots and tubers  
 0119 Other temporary crops  
012  Permanent crops  
 0121 Culture of tropical and subtropical fruits  
 0122 Citrus Culture  
 0123 Culture of oleaginous fruits  
 0124 Coffee culture  
 0129 Other permanent crops  
013  0130  Culture of vegetative propagating material  
014  Livestock production  
 0141 Breeding cattle and buffaloes  
 0142 Breeding of equines, asinines and mules  
 0143 Breeding of sheep and goat  
 0144 Pig breeding  
 0145 Poultry farming  
 0149 Other livestock production  
015  0150  Combined agriculture and livestock production  
016  0160  Services activities related to agriculture and livestock production  
017  0170  Hunting and related services  
02  Forestry and forest exploration  
021  Forestry and other forestry activities  
 0211 Planted forests  
 0212 Natural forests  
022  0220  Forest exploration  
023  0230  Harvesting of forest products other than wood  
024  0240  Services activities related to forestry and forest exploration  
03  Fishing and aquaculture  
031  Fishing  
 0311 Sea fishing  
 0312 Inland fishing  
032  0320  Aquaculture  
034  0340  Service activities related to fishing and aquaculture  
C  MANUFACTURING INDUSTRIES  
10  Food industry  
103  1030  Processing and preserving of fruit and vegetables  
104  1040  Production of animal and vegetable oils and fats  
105  1050  Dairy industry  
106  Processing of cereals and legumes; Manufacture of starches, starch products 
and related products  
 1061 Processing of cereals and legumes  
 1062 Manufacture of starches, starch products and related products  
107  Manufacture of bakery and other flour products  
 1071 Bakery  
 1072 Manufacture of pastry, biscuits, cookies and toasts  
1  1073 Manufacture of cocoa, chocolate and sugar confectionery  
 1074 Coffee industry  
 1079 Manufacture of other food products, n.s.  
108  1080  Manufacture of animal feed  
11  Beverage industry  
110  Beverage industry  
 1101 Manufacture of distilled alcoholic beverages  
 1102 Wine industry (includes palm wine)  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Code (Timor -Leste 
classification)  Activity  
 1103 Brewing and malting  
 1104 Manufacture of soft drinks; production of natural mineral waters and other 
bottled waters  
12  Tobacco industry  
120  1200  Tobacco industry  
15  Industry of leather and leather products  
151  1510  Tanning and finishing of non -fur and fur; manufacture of travel goods and 
personal use products, of fine leather goods, saddlery and harness  
152  1520  Footwear industry  
16  Wood and cork industries and articles thereof, except furniture; 
Manufacture of basketwork and wickerwork  
162  Manufacture of articles of wood, cork, wickerwork and basketwork, except 
furniture  
 1621 Manufacture of veneer and wood -based panels  
 1622 Manufacture of other carpentry work for construction  
 1623 Manufacture of wooden containers  
 1629 Manufacture of other products of wood and cork  
17  Manufacture of pulp, paper, paperboard and other paper products  
171  Manufacture of pulp, paper and paperboard (except corrugated board)  
172  Manufacture of paper and corrugated paperboard, paper and paperboard 
products  
22  Manufacture of rubber and plastic products  
221  2210  Manufacture of rubber articles  
222  2220  Manufacture of articles of plastics  
23  Manufacture of other non -metallic mineral products  
231  2310  Manufacture of glass and glass products  
232  Manufacture of refractory ceramic products  
233  Manufacture of ceramic products for constructio n  
234  Manufacture of other non -refractory porcelain and ceramic products  
237  Sawing, cutting and finishing of ornamental stones and other building stones  
239  Manufacture of non -metallic mineral products, n.s.  
 2391 Manufacture of ceramic products for domestic and ornamental purposes and 
other products, except for building  
 2392 Manufacture of ceramic products for construction  
 2393 Manufacture of concrete products for construction  
 2394 Manufacture of ready concrete  
 2395 Sawing, cutting and finishing of building stones  
 2399 Manufacture of other non -metallic mineral prod ucts, n.s.  
24  Basic metallurgical industries  
241  2410  Steel industry and the manufacture of ferroalloys  
242  2420  Manufacture of tubes, pipes, hollow profiles and associated steel accessories  
25  Manufacture of metal products, except machinery and equipment  
251  Manufacture of reservoirs, containers, boilers and metal radiators, for central 
heating  
 2511 Manufacture of door structures, windows and similar metal elements  
 2512 Manufacture of reservoirs, containers, boilers and steam generators  
259  Manufacture of other metal products, metal treatment and coating and general 
mechanical activities  
 2591 Manufacture of forged, stamped and laminated products  
 2592 Treatment and coating of metals and general mechanic activities  
 2593 Manufacture of cutlery, hand tools and hardware  
 2599 Manufacture of other metal products, n.s.  
26  Manufacture of computer equipment, communication equipment and 
electronic and optical products  
261  2610  Manufacture of components and plates, electronic  
262  2620  Manufacture of computers and peripheral equipment  
263  2630  Manufacture of communication equipment and devices  
264  2640  Manufacture of radio and television receivers and similar consumer goods  
265  2650  Manufacture of instruments and appliances for measuring, checking and 
navigating; watches and watchmaking equipment  
27  Manufacture of electrical equipment  
271  2710  Manufacture of electric motors, generators and transformers and manufacture 
of distri bution and control equipment for electrical installations, accumulators, 
batteries and insulated cables and their accessories  
272  2720  Manufacture of electric lamps and other lighting equipment  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Code (Timor -Leste 
classification)  Activity  
273  2730  Manufacture of household appliances and other household appliances  
279  Manufacture of other electrical equipment  
28  Manufacture of machinery and equipment, n.s.  
281  2810  Manu facture of machinery and equipment for general use  
282  2820  Manufacture of other machinery and equipment for specific use  
29  Manufacture of motor vehicles, trailers, semi -trailers and components 
for motor vehicles  
291  2910  Manufacture of motor vehicles  
292  2920  Manufacture of coachworks, trailers and semi -trailers  
293  2930  Manufacture of parts and accessories for motor vehicles  
30  Manufacture of other transport equipment  
301  3010  Shipbuilding  
302  3020  Manufacture of rolling stock for railways  
303  3030  Manufacture of aircraft, spacecraft and related equipment  
304  3040  Manufacture of military combat vehicles  
309  Manufacture of other transport equipment, n.s.  
31  Manufacture of furniture and mattresses  
310  Manufacture of furniture and mattresses  
 3101 Manufacture of wooden furniture  
 3102 Manufacture of bamboo furniture  
 3109 Manufacture of mattresses and other furniture  
32  Other manufacturing  
321  Manufacture of jewelry, goldsmiths' jewelry, imitation jewelry and similar 
articles; coinage  
 3211 Manufacture of jewelry, goldsmiths' jewelry and similar articles; coinage  
324  3240  Manufacture of games and toys  
325  3250  Manufacture of medical -surgical instruments and materials  
D  ELECTRICITY, GAS, STEAM, HOT AND COLD WATER AND COLD AIR  
35  Electricity, gas, steam, hot and cold water and cold air  
353  Production and distribution of steam, hot and cold water and cold air by 
pipeline; ice production  
 3531 Production and distribution of steam, hot and cold water and cold air by pipeline  
 3532 Ice production  
F  CONSTRUCTION  
43  Specialized construction activities  
433  4330  Finishing activities in buildings  
439  Other specialized construction activities  
 4391 Rental of construction and demolition equipment with operator  
 4399 Other specialized construction activities, n.s.  
G  WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND 
MOTORCYCLES  
45  Trade, maintenance and repair of motor vehicles and motorcycles  
452  4520  Maintenance and repair of motor vehicles  
454  Trade, maintenance and repair of motorcycles, their part s and accessories  
 4542 Maintenance and repair of motorcycles, their parts and accessories  
46  Wholesale trade (including agents) other than motor vehicles and 
motorcycles  
462  4620  Wholesale of agricultural raw materials and live animals  
463  4630  Wholesale of food, beverages and tobacco  
47  Retail trade, except of motor vehicles and motorcycles  
471  Retail sale in non -specialized stores  
 4711 Retail sale in non -specialized stores with food, beverages or tobacco 
predominating  
472  Retail sale of food, beverages and tobacco  
 4721 Retail sale of fruit and vegetables in specialized stores  
 4722 Retail sale of bread, bakery and confectionery p roducts in specialized stores  
 4729 Retail sale of other food, beverages and tobacco in specialized stores  
477  Retail sale of other goods in specialized stores  
 4772 Retail sale of pharmaceutical, medical, cosmetic and toilet articles in specialized 
stores  
478  Retail sale in stalls, fairs and mobile sales units  
 4785 Retail sale in stalls, fairs and mobile sales units, of fuels and lubricants  
H  TRANSPORTATION AND STORAGE  
52  Warehousing and activities auxiliary to transport  
522  Activities auxiliary to transport  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Code (Timor -Leste 
classification)  Activity  
 5221 Activities auxiliary to land transport  
 5222 Activities auxiliary to water transport  
 5223 Activities auxiliary to air transport  
 5224 Load Handling  
 5225 Activities of freight forwarders and customs agents of maritime transport  
 5226 Activities of freight forwarders and customs agents of air  transport  
 5229 Other transport support activities  
I  ACCOMMODATION, RESTAURANT SERVICES AND SIMILAR  
56  Restaurant services and similar  
562  Catering for events and other catering services  
 5621 Event catering  
 5629 Other catering services  
J  INFORMATION AND COMMUNICATION ACTIVITIES  
60  Radio and television activities  
601  6010  Radio activities  
602  6020  Television activities  
61  Telecommunications  
611  6110  Wired telecommunications activities  
612  6120  Wireless telecommunications activities  
613  6130  Satellite telecommunication activities  
619  6190  Other telecommunications activities  
M  ACTIVITIES OF CONSULTING, SCIENTIFIC,  
TECHNIQUES AND SIMILAR  
71  Architectural, engineering and related technical activities;  
Testing and technical analysis activities  
711  7110  Architectural, engineering and related technical activities  
712  7120  Testing and technical analysis activities  
72  Scientific and development research activities  
721  Research and development of the physical and natural sciences  
 7211 Research and development of the natural sciences  
 7212 Research and development of the physical sciences and engineering  
722  Research and development of social and human sciences  
 7221 Research and development of social sciences  
 7222 Research and development of the humanities  
73  Advertising, market research and opinion polls  
731  Advertising  
732  Market research and opinion polls  
75  Veterinary activities  
750  7500  Veterinary activities  
N  ADMINISTRATIVE ACTIVITIES AND SUPPORT SERVICES  
79  Travel agencies, tour operators, other booking services and related 
activities  
791  7910  Travel agencies and tour operators  
80  Research and safety activities  
801  8010  Private security activities  
802  8020  Activities related to security systems  
P  EDUCATION  
85  Education  
855  8550  Services and support to education activities  
Q  HUMAN HEALTH AND SOCIAL SUPPORT ACTIVITIES  
88  Social support without accommodation activities  
881  8810  Social support without accommodation activities for the elderly and disabled  
889  Other social support activities without accommodation  
 8891 Care activities for children, without accommodation  
 8899 Other social work activities without accommodation, n.s.  
R  ARTISTIC, PERFORMING, SPORTS AND RECREATIONAL ACTIVITIES  
92 - 920 9200  Lotteries and other sports betting  
S  OTHER SERVICE ACTIVITIES  
94  Activities of associative organizations  
949  Other activities of associative organizations  
 9492  Activities of political organizations  
Source:  Decree- Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities" . 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 8(C) 
Classification of Economic Activities –  High Risk  (revoked  by Decree-Law No. 83/2022 of 
23 November 2022)  
Code (Timor -Leste 
classification)  Activity  
B EXTRACTIVE INDUSTRIES  
05  Extraction of hard coal and lignite  
051  0510  Extraction of hard coal (includes anthracite)  
052  0520  Extraction of lignite  
06  Extraction of oil and natural gas  
061  0610  Extraction of crude oil  
062  0620  Extraction of natural gas  
07  Extraction and preparation of metallic minerals  
071  0710  Extraction and preparation of iron ores  
072  0720  Extraction and preparation of non -ferrous minerals  
08  Other extractive industries  
081  Extraction of stone, sand and clay  
 0811 Extraction of stone for construction  
 0812 Extraction of sand  
 0813 Extraction of crushed stone  
 0814 Extraction of clay and kaolin  
089  Extractive industries, n.s.  
 0891 Extraction of minerals for the chemical industry and the manufacture of 
fertilizers  
 0892 Extraction of salt  
 0893 Other extractive industries, n.s.  
09  Service activities related to extractive industries  
091  0910  Service activities related to oil and gas extraction, except prospecting  
099  0990  Other service activities related to extractive industries  
C  MANUFACTURING INDUSTRIES  
10  Food industry  
101  1010  Preparation and preservation of meat and meat products  
102  1020  Processing and preserving of fish, crustaceans and molluscs  
19  Manufacture of coke, refined petroleum products and agglomerates of 
fuels  
191  1910  Manufacture of coking products  
192  1920  Manufacture of refined petroleum products and agglomerates of fuels  
20  Manufacture of chemicals and synthetic or artificial fibers, except 
pharmaceuticals  
201  Manufacture of basic chemicals, fertilizers and nitrogen compounds, plastics 
and synthetic rubber, in primary forms  
202  Manufacture of pesticides and other agrochemical products  
 2021 Manufacture of soap and detergents, cleaning and polishing preparat ions, 
perfumes and hygiene products  
 2029 Manufacture of other chemical products, n.s.  
203  2030  Manufacture of paints, varnishes and similar products; mastics; printing inks  
204  Manufacture of soap and detergents, cleaning and polishing preparations, 
perfumes and toilet preparations  
205  Manufacture of other chemical products  
206  Manufacture of synthetic or artificial fibers  
21  Manufacture of basic pharmaceutical products and pharmaceutical 
preparations  
211  Manufacture of basic pharmaceutical products  
212  Manufacture of pharmaceutical preparations  
23  Manufacture of othe r non -metallic mineral products  
235  Manufacture of cement, lime and plaster  
236  Manufacture of concrete, plaster and cement products  
239  Manufacture of abrasive and other non -metallic mineral products  
25  Manufacture of metal products, except machinery and equipment  
252  2520  Manufacture of weapons and ammunition  
26  Manufacture of computer equipment, communication equipment and 
electronic and optical products  
266  Manufacture of radiation, electromedical and electrotherapeutic equipment  
D  ELECTRICITY, GAS, STEAM, HOT AND COLD WATER AND COLD AIR  
35  Electricity, gas, steam, hot and cold water and cold air  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 120 - 
 
  Code (Timor -Leste 
classification)  Activity  
351  3510  Electricity generation, transportation, distribution and trade  
352  3520  Gas production; distribution of gaseous fuels through pipelines; gas trade  
E  DECONTAMINATION  
36 - 360 3600  Water collection, treatment and distribution  
37 - 370 3700  Collection, drainage and treatment of waste water  
38  Collection, treatment and disposal of waste; valuation of materials  
381  Collection of waste  
 3811 Collection of non -hazardous waste  
 3812 Collection of hazardous waste  
382  Treatment and disposal of waste  
 3821 Treatment and disposal of non -hazardous waste  
 3822 Treatment and disposal of hazardous waste  
383  3830  Valorization of materials  
39 - 390 3900 Decontamination and similar activities  
F  CONSTRUCTION  
41 - 410 4100  Building construction (residential and non -residential)  
42  Civil Engineering  
421  4210  Construction of roads, bridges, tunnels, runways of airports and railways  
422  4220  Construction of water transport networks, sewage, power distribution, 
teleco mmunications and other networks  
429  4290  Construction of other civil engineering works  
43  Specialized construction activities  
431  4310  Demolition and construction preparation  
432  Electrical installation, plumbing, air conditioning and other installations  
 4321 Electric installation  
 4322 Plumbing and air conditioning installation  
 4329 Other installations under construction  
G  WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND 
MOTORCYCLES  
46  Wholesale trade (including agents) other than motor vehicles and 
motorcycles  
466  Wholesale of other machinery, equipment and their parts  
 4661 Wholesale of solid, liquid, gaseous fuels and derived products  
 4662 Wholesale of metals and metal ores  
47  Retail trade, except of motor vehicles and motorcycles  
473  4730  Retail sale of fuels in specialized stores  
H  TRANSPORTATION AND STORAGE  
49  Land transport and transport by oil pipeline or gas pipeline  
491  4910  Transport by rail  
492  Other land transport (land passenger transport)  
 4921 Inland, urban and suburban passenger transport  
 4922 Other land passenger transport  
 4923 Road transport of merchandise  
493  4930  Transport by oil and gas pipelines  
50  Water transport  
501  Passenger sea transportation  
 5011 Passenger sea transportation  
 5012 Freight sea transport  
502  5020  Freight sea transport  
51  Air transport  
511  5110  Airline passenger transport  
512  5120  Air freight transport  
I  ACCOMMODATION, RESTAURANT SERVICES AND SIMILAR  
55  Accommodation  
551  Hotel establishments  
 5511 Hotel establishments  
 5512 Holiday Homes  
552  Camping and caravan parks  
 5521 Camping Parks  
 5522 Caravan Parks  
559  5590  Other places of accommodation  
56   
561   
 5611  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 121 - 
 
  Code (Timor -Leste 
classification)  Activity  
 5612  
563  5630  Food & Beverage establishments  
K  FINANCIAL AND INSURANCE ACTIVITIES  
64  Financial services activities, except insurance and pension funds  
641  Monetary intermediation  
 6411 Central bank  
 6412 Public bank  
 6419 Other monetary intermediation  
642  6420  Activities of holding companies  
643  6430  Trusts, funds and similar financial entities  
649  Other financial service activities, except insurance and pension funds  
 6491 Leasing activities  
 6492 Pawnshops  
 6493 Credit unions  
 6494 Other credit activities  
 6495 Venture capital companies  
 6499 Other financial services activities, n.s. except insurance and pension funds  
66  Activities auxiliary to financial services and insurance  
661  Activities auxiliary to financial services, except insurance and pension funds  
 6611 Financial Markets Management  
 6612 Trading activities on behalf of third parties in transferable securities and other 
financial instruments  
 6619 Other activities auxiliary to financial services, except insurance and pension 
funds  
662  6620  Activities auxiliary to insurance and pension funds  
663  6630  Fund management activities  
O  PUBLIC ADMINISTRATION AND DEFENSE; MANDATORY SOCIAL 
SECURITY  
84  Public administration and defense; mandatory social security  
841  Public administration in general, economic and social  
 8411 Central Public Administration  
 8412 Regional and Local Administration  
 8413 Public Administration - health, education, cultural and social activities, except 
mandatory social security  
 8414 Public Administration - economic activities  
 8415 Activities in support of Public Administration as a whole  
842  Foreign affairs, defens e, justice, security, public order and civil protection  
 8421 Foreign affairs  
 8422 Defense activities  
 8423 Justice activities  
 8424 Activities of Security, Public Order and Civil Protection  
843  8430  Mandatory social security activities  
P  EDUCATION  
85  Education  
851  Pre-school education and basic education 1st and 2nd cycles  
 8511 Pre-school education  
 8512 Basic education 1st and 2nd cycles  
852  Basic education 3rd cycle and secondary  
 8521 Basic education 3rd cycle  
 8522  General Secondary Education  
 8523 Technical and vocational education  
853  8530  Higher education  
854  Other educational activities  
 8541 Professional qualification  
 8549 Other educational activities, n.s.  
Q  HUMAN HEALTH ACTIVITIES AND SOCIAL SUPPORT  
86  Human health activities  
861  8610  Activities of inpatient health facilities  
862  8620  Activities of outpatient clinics, dental and dentistry  
869  Other human health activities  
 8691 Clinical analysis laboratories  
 8692 Collection centers and organ banks  
 8699 Other human health activities, n.s.  
87  Social support activities with accommodation  
871  8710  Activities of continuous integrated outpatient care facilities with accommodation  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 122 - 
 
  Code (Timor -Leste 
classification)  Activity  
872  8720  Activities of establishments for persons with mental illness and drug abuse, 
with accommodation  
873  8730  Social support activities for the elderly and disabl ed, with accommodation  
879  8790  Other social support activities with accommodation  
Source:  Decree- Law No. 34/2017 of 27 September 2017 on "Licensing of Economic Activities".  
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 123 - 
 
  ANNEX 8(D)  
Classification of Economic Activities  in accordance with Decree-Law No. 34/2017 "On 
Licensing of E conomic Activities ", as amended by Decree-Law No. 83/2022 of 
23 November 2022 – Activities subject to licensing  
 
Code (Timor -Leste classification)  Activity  
A    AGRICULTURAL, ANIMAL PRODUCTION, HUNTING, 
FORESTRY AND FISHING  
 01   Agriculture, animal production, hunting and related service 
activities  
  012  Permanent Crops  
   0124 Culture of growing coffee  
  014  Animal production  
   0149 Other animal production  
 03   Fishing and aquaculture  
  031  Fishing  
   0311 Sea fishing  
   0312 Inland fishing  
  032 0320 Aquaculture  
B    EXTRACTIVE INDUSTRY  
 05   Extraction of hard coal and lignite  
  051 0510 Hard coal mining includes an tracite  
  052 0520 Lignite extraction  
 06   Extraction of crude oil and natural gas  
  061 0610 Crude oil extraction  
  062 0620 Natural gas extraction  
 07   Extraction and preparation of metal ores  
  071 0710 Extraction and preparation of ore and iron  
  072 0720 Extraction and preparation of non -ferrous ores  
 08   Other Extractive Industries  
  081  Area stone quarrying and clay  
   0811 Stone extraction for construction  
   0812 Area extraction  
   0813 Crushed stone extraction  
   0814 Extraction of clay and kaolin  
 09   Service activities related to the extractive industries  
  091 0910 Service activities incidental to oil and gas extraction excluding 
surveying  
  090 0990 Other service activities incidental to mining and quarrying  
C    MANUFACTURING INDUSTRIES  
 10   Food industries  
  101 1010 Preparation and preserving of meat and meat products  
  102 1020 preparation and preservation of fish, crustaceans and mollusk  
  103 1030 preparation and preservation of fruit and vegetables  
  104 1040 Production of animal and vegetable fats and oils  
  105 1050 Dairy Industries  
  106  Processing Of Vegetable And Vegetable Products, 
Manufacture Of Starches, Starch Products And Similar 
Products  
   1061 Cereal and legume processing  
   1062 Manufacture of starches, starch products and similar products  
  107  Manufacture of food products and other foodstuffs  
   1071 Bakery  
   1072 Manufacture of pastry, cakes, biscuits and toasts  
   1073 Cocoa, chocolate and sugar confectionery industry  
   1074 Coffee industry  
   1079 Manufacture of other food products   
  108 1080 Manufacture of animal feeding stuffs   
 11 110  Beverages Industry  
   1101 Production of distilled alcoholic beverages  
   1102 Wine industry including palm wine  
   1103 Production of beer and malt  
   1104 Manufacture of soft drinks production of natural mineral waters 
and other bottled waters  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 124 - 
 
  Code (Timor -Leste classification)  Activity  
 19   Manufacture of coke, petroleum products and refined 
petroleum products  
  191 1910 Manufacture of coke oven products  
  192 1920 Manufacture of refined petroleum products and fuel pellets  
 25   Manufacture of metal products except machinery and 
equipment  
  252 2520 Manufacture of arms and ammunition  
  259  Manufacture of other metal products treatment and coating 
of metals for general mechanical activities  
   2593 Manufacture of cutlery, hand tools and hardware  
D    ELECTRICITY, GAS, STEAM, HOT COLD WATER AND COLD 
AIR 
 35   Electricity, Gas, Steam, Hot Cold Water And Cold Air  
  351 3510 Production, transport, distribution and trade of electricity  
  353 3530 production and distribution of steam, hot and cold water, air duct 
cooling, ice production  
E    WATER COLLECTION, DISTRIBUTION AND TREATMENT  
SANITATION WASTE MANAGEMENT AND DE -POLLUTION  
 36 360 3600 Water collection and treatment, distribution of water  
F    CONSTRUCTION  
 41 410 4100 Construction of residential and non -residential  
 42   Civil engineering  
  421 4210 Construction of highways, bridges, tunnels, port speckles and 
ferries  
  422 4220 Construction of water, sewage, energy distribution, 
telecommunication and other networks  
  423 4290 Construction of other civil engineering works  
 43   SPECIALIZED CONSTRUCTION ACTIVITIES  
  434  Other construction -specific activities  
   4399 Other specialized construction activities  
G    WHOLESALE AND RETAIL TRADE AND REPAIR OF MOTOR 
VEHICLES AND MOTORCYCLES  
 45   Maintenance and repair of motor vehicles and motorcycles  
  451 4510 Automotive trade  
 46   Wholesale trade (including agents) except of motor vehicles 
and motorcycles  
  466  Other Specialty Wholesale Trade  
   4661 Wholesale of fuels, solids, liquids, gases and derivatives  
 47   Retail and trade of automotive vehicles and vehicles  
  473 4730 Retail sale of automotive and motor fuel in specialized stores  
  477  Retail Sale Of Other Products In Specialized Stores  
   4772 Retail sale of pharmaceutical, medical, cosmetic and toiletries 
products in specialized stores  
H    TRANSPORTATION AND WAREHOUSING  
 49   Land transport and transport via pipelines  
  492  other terrestrial transport  
   4921 Urban and suburban passenger transportation  
   4922 other land transport and passenger transport  
   4923 road transport of goods  
 51   Storage And Auxiliary Transport Activities  
  511 5110 air transport and cargo  
  512 5120 Air and cargo transportation  
 53   Postal and courier activities  
  531 5310 Postal activities subject to universal service obligation  
  532 5320 Other postal and courier activities  
I    ACCOMMODATION AND CATERING (RESTAURANTS AND 
SIMILAR)  
 55   Accommodation  
  552  Camping and caravan sites  
   5521 Camping sites  
   5522 Caravan Parks  
  559 5590 other places of accommodation  
 56   (Restaurants and Similar)  
  561  Restaurant includes restoring activities and furniture  
   5611 Traditional restaurant  
   5612 Restaurant in mobile media  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Code (Timor -Leste classification)  Activity  
  562  Catering for events and other catering activities  
   5621 Event catering  
   5629 Other food service activities  
  563 5630 Eat and drink  
J    COMMUNICATION AND INFORMATION ACTIVITIES  
 58   Publishing Activities  
  581  Book, newspaper and other information publishing  
   5813 Publishing of newspapers, magazines and other periodicals  
 60   Radio and Television activities  
  601 6010 Radio Activities  
  602 6020 Television activities  
 61   Telecommunications  
  611 6110 Wired Telecommu nication  Activities  
  612 6120 Wireless Telecommunication Activities  
  613 6130 Satellite Telecommunication Activities  
K    FINANCIAL ACTIVITY AND SECURITIES  
 64   financial, insurance and pension fund activities  
  641  Monetary intermediation  
   6411 Central bank  
   6412 Public bank  
   6419 Other monetary intermediation  
  642 6420 Activities of holding companies  
  643 6430 Trust and similar financial entities  
  649  Other financial, excl. insurance and pension funding activities  
   6491 Financial leasing activities  
   6492 Pawn shop  
   6493 Credit cooperative  
   6494 Other lending activities  
   6495 Capital adequacy risks  
   6499 Other financial service activities except insurance and pension 
funding  
 65   Insurance, Reinsurance and Pension Funds, Except 
Compulsory Social Security  
  651 6510 insurance  
  652 6520 Reinsurance  
  653 6530 Pension funds  
 66   Auxiliary activities and financial and insurance services   
  661  Auxiliary activities and financial services for securities and pension 
funds  
   6611 Financial market management  
   6612 Securities and other financial instruments trading activity on behalf 
of third parties  
   6619 Other financial service activities, except insurance and pension 
funding  
  662 6620 activities auxiliary to financial services, except insurance and 
pension funding  
  663 6630 fund management activities  
M    SIMILAR SCIENTIFIC AND TECHNICAL CONSULTING 
ACTIVITIES   
 69   Legal and accounting activities  
  691 6910 Legal activities  
  692 6920 Accounting and auditing activities tax consultancy  
 73   Advertising market research and opinion polls  
  731 7310 Advertising  
  732 7320 Market approach and openness fees  
N    ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES  
 79   Travel agencies and tour operators other reservation 
services and related activities  
  791 7910 Travel agencies and tour operators  
  799 7990 Other reservation services and related activities  
 80   investigation and security activities  
  801 8010 Private security activities  
  802 8020 security system related activities  
  803 8030 Research Activities  
P    EDUCATION  
 85   education  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 126 - 
 
  Code (Timor -Leste classification)  Activity  
   8511 pre-school education  
   8512 basic education 1,2, cycle  
  852  elementary education 3 cycle high school  
   8521 elementary school 3 cycle  
   8522 general secondary education  
   8523 technical professional education  
   8530 higher education  
Q    Human Health And Support Activities  
 86   human health activities  
  861 8610 activities health care establishment with inpatient care  
  862 8620 Activity of clinical and ambulatory practice in dentistry and dental 
medicine  
  869  Other human health activities  
   8691 Laboratory analysis of clinics  
   8692 organ collection and banking center  
   8699 Other human health activities  
R    ARTISTIC ACTIVITIES OF SPORTS AND RECREATIONAL 
SHOWS  
 92 920 9200 Other Lotteries and Betting Games  
 93   Sports, Amusement and Recreational Activities  
  931  Sports activities  
   9311 Sports club activities  
   9319 Other Sports Activities  
  932 9320 Amusement and recreational activities  
S    OTHER SERVICE ACTIVITIES  
 94   Activities of associative organizations  
  941  Activities of the economic employers' and professional 
organizations  
   9412 Activities of organizations and professionals  
- activities marked with "*" are subject to licensing in accordance with the sectoral regulation.  
- activities with potential environmental risk are subject to licensing in accordance with 
Decree- Law No. 5/2011 of 9 February 2011 on "Environmental Licensing", as amended by Decree-
Law No. 39/2022 of 8 June 2022.  
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 127 - 
 
  ANNEX 9 
National Committee on Trade Facilitation  
Government Resolution No. 6/2016 of 17 February 2016 on the " National Committee  for Trade 
Facilitation ", as amended by Government Resolution No. 24/2023 of 24 May  2023, lists in Article 3 
of the Annex the Ministries and Agencies that make up the Committee, as follows:  
1. The Committee is composed of Executive Members, a Technical Working Group, a Secretariat 
and Observer Members.  
2. Executive Members:  
a) Coordinating Minister for Economic Affairs (MCAE);  
b) Minister of Finance;  
c) Minister of Public Works,  
d) Minister of Transport and C ommunications;  
e) Minister of the Interior;  
f) Minister  of Tourism, Commerce and Industry ; 
g) Minister of Foreign Affairs and Cooperation;  
h) Minister of Agriculture and Fisheries.  
3. Members of the Technical Working Group:  
a) Commissioner of the Customs Authority ; 
b) Coordinator of the Tax Reform Program;  
c) MCAE representative;  
d) Representative of the Ministry of Foreign Affairs and Cooperation for ASEAN Affairs; 
e) General Inspector of the Inspection and Supervision Authority of Economy, Health and Food 
Activity (AIFAESA);  
f) Director of the Administration of the Timor -Leste Port Authority (APORTIL);  
g) Director of the Civil Aviation Authority of Timor -Leste (AACTL); 
h) National Director for Immigration;  
i) National Director of Quarantine and Bios ecurity ; 
j) Director for Exports  Promotion of Trade Invest ; 
k) Executive -Director of SERVE;  
l) President of the Institute of Quality of Timor -Leste;  
m) Executive Director of the Agency of Technologies for Information and Communication, TIC Timor -Leste;  
n) Director -General of Transport and Communicat ions;  
o) National Director for Foreign Trade of the Ministry of Commerce and Industry;  
p) Licensing and Regulatory Manager of the Central Bank of Timor -Leste.  
4. Non-Executive Members:  
a) President of the Chamber of Commerce and Industry, or their  representative;  
b) President of the Association of Customs Brokers, or his representative ; 
c) President of the Businesswomen Association of Timor -Leste, or his representative;  
d) A representative of the Ti mor Port;  
e) A representative of the Maritime Officers;  
f)  A representative of the passengers and cargo air companies;  
g) A representative of the commercial banking sector;  
h) A representative of the insurance companies.  
 
5. Observer Members :  
a) World Bank Group;  
b) the Asian Development Bank ; 
c) UNCTAD;  
d) USAID . 
 
6. The Director General for Trade of the Ministry of Commerce  and Industry and the Commissioner 
of the Customs Authority shall jointly coordinate the Technical Working Group . 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 128 - 
 
  ANNEX 10  
Legislative Provisions related to Trade Facilitation  
The Customs Code frames and guides all subsidiary customs legislation that needs to be produced. 
The Code devotes Title XXI (Final Provisions) to the timetable, implementing regulations, 
implementing measures and complementary legislation. Examples of implementing regulations, implementing measures and complement ary legislation inherent to the  Customs Code are as follows:  
Article 2 (Good Administrative Practices):  
1. Within one year from the date of entry into force of this Decree -Law, the Government approves, 
by Resolution of the Council of Ministers, a 'Guide to good administrative practices'. 2. The guide 
mentioned in the preceding paragraph is a standard reference document for conducts by the Public 
Administration.   
Article 15 (Publication):  
1. Without prejudice to the provisions of the following paragraph and  upon proposal from the Director 
General of Customs, the Minister approves the forms relating to customs declarations, to 
the collection of customs tax revenue, to the application of the customs valuation system of goods 
or to the fulfilment of the duties established in this Code and other customs legislation in force.  
2. Forms for the customs control of persons, goods and means of transport shall be approved by 
the Director -General. 3. The updated list of all forms in force as well as the places where they  can 
be purchased should, wherever possible, be published on the official website of the Ministry of 
Finance or Customs.  
Section III (Representative Professional Public Association of Official Dispatchers), Article 43 
(Representativeness): 
1. The represent ative association of official brokers is the professional and representative association 
of the respective professional card holders. 2. Membership in the association is mandatory as 
an indispensable condition for the official broker to be able to exercise  his profession. 3. The Statutes 
of the association, as well as the respective amendments, are approved by a proper diploma and 
published in the Official Gazette.  
Article 79 (Records and Payments):   
1. It is the responsibility of the Director General, by w ay of notice published in the Official Gazette, 
to approve: (a) documents required or established by customs legislation which may be transmitted 
through a stipulated electronic record; ( b) Payment required or established by Customs legislation 
which may b e made through a stipulated electronic format; (c) Customs information system for 
which such documents may be transmitted, or by means of which such payments may be effected. 
2. The electronic transmission of documents or the payments indicated in the prev ious paragraph 
are subject to authorization by the Director General according to article 80, or other conditions that 
may be stipulated. 3. The Director General may determine that the documents or payments referred 
to in paragraph 1 of this article be tran smitted in electronic form, without prejudice to any exceptions 
that may be stipulated.  
Article 179 (Prohibited Import Goods):  
Without prejudice to the provisions of special legislation and acts of international law subscribed by 
the Government of Timor -Leste, it is prohibited to import certain goods to be defined in a list 
approved by the Minister.  
Article 180 (Conditional Import Goods):  
Without prejudice to the provisions of special legislation and acts of international law subscribed by the Government of Timor -Leste, only the goods in a list to be approved by the Minister may be 
subject to conditional imports, as long as they comply with the conditions established in the 
respective legal instrument.  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 129 - 
 
  According to Chapter V (Customs Warehouse), Article 197 (Concept):  
1. Customs warehousing procedure shall permit the storage of imported goods in a customs 
warehouse, irrespective of the quantity, country or place of origin and destination, with suspension 
of duties and other import charges or subject to commercial policy measures.  
In such circumstances, Article 204 (Authorized Operations) provides:  
2. Usual handlings of such goods must be detailed in a list to be approved by the Minister, upon 
proposal by the Director General, and their realizatio n must be authorized by the Director of Customs 
Control, who will determine the  conditions under which they can be carried out.  
Section V (Circulation of goods subject to Selective Consumption Tax – ISC - and control of exit from 
port facilities), Article 226 (Documents accompanying goods subject to ISC):  
1. The circulation of goods subject to ISC that are in suspension regime is made with a document of 
accompaniment whose model will be approved by order of the Minister.  
Chapter IV (Guarantee for Customs D ebt), Article 323 (Requirement of Guarantee):  
1. Always, when enforcing customs legislation, if the Customs require a guarantee to ensure 
payment of a customs debt, such guarantee shall be provided by the debtor. 2. When the debtor is 
a service of Public A dministration, the bank guarantee may be replaced by a commitment voucher 
of payment (CVP). 3. The list of Public Administration services authorized to use the commitment 
voucher of payment shall be approved by the Minister.  
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 130 - 
 
  ANNEX 11 
National Single Window Project : Activities and Timeline  
Agency  Type Timeline  Agreement (MOU)  Status  
First Phase  
TradeInvest Timor -
Leste I.P.  Government  February 2021  Signed  Live 
Ministry of Tourism, 
Commerce and 
Industry (Commercial Vehicle 
Importation – pre-
approval)  Government  October  2021 
 
 January  2022 
 
 Protocol  of 
cooperation  signed  
  
 
 Live 
 
  
 
Secretary State for 
Environment – 
Department of Ozone Depleting 
Substance  Government  September 2021  
   Protocol of 
Cooperation Signed  Live 
APORTIL (Port 
Authority of Timor -
Leste I.P.)  
(Issuance of Exit 
Notes)  Government  October 2021  
 
 August 2021 Protocol  of 
Cooperation  Signed   
  Live 
Ministry of Health - 
The Autonomous Service for Medicines 
and Health 
Equipment (SAMES), 
 
  
The Pharmacy & 
Medicines National Directorate,  
  
 
 
 
 
 
The Licensing and 
the Registration of Health Activities 
National Directorate  Government  October  2021 
 
 
January 2022 
  
 
August 2022 
 
 
 
 
 
  
 
 
September 2022 Protocol of 
Cooperation Signed  
 
 
 
 
 
Protocol of 
Cooperation is under 
negotiation with 
both Directorates   
 
 
Live 
  
 
Module is  developed 
– Basic Training on 
AW for staff has  
been completed. 
Awaiting for 
confirmation  of MoH 
for further training 
to staff and  plan for 
rollout  
 
Module development  
is ongoing  
National Directorate 
for Quarantine and Biosecurity, Ministry of Agriculture and 
Fisheries  Government  October  2021 
  July 2022  Protocol  of 
Cooperation  Signed   
  Live  
National Directorate 
for Land Transport, 
Ministry Transport 
and Communication 
– Commercial 
Vehicle Importation Approval and the 
Issuance of Plate 
numbers  Government  June 2022 
 
 
March 2022  Protocol  of 
Cooperation  Signed  
  
 
 
Live 
Tax Authority / 
SERVE  
 Government  September  2022 In progress  Ongoing  technical 
work with system 
consultants  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 131 - 
 
  Agency  Type Timeline  Agreement (MOU)  Status  
Ministry of Tourism, 
commerce and 
Industry 
(Automating the 
existing process of 
the issuance of 
Certificates of 
Origins)  Government  August  2022 In progress   Module is developed 
– Awaiting for 
agreement from 
MTCI for User 
Acceptance Test  
Immigration 
Services of Timor -
Leste Government  December  2022 In progress  System to system 
interface is subject 
to the  completion  of 
Immigration  
Department 's owned  
system, the BMIS  
New Timor Port 
(Bollore)  PPP August  2022 In progress  Final discussion with 
Timor Port on 
system Connectivity 
and data 
storage/Exchange  
Commercial Banks 
(BNU and BNCTL)  Private  December  2022 In progress  Subject to ongoing  
discussion  with BCTL  
Trade Community  
- Traders  
- Customs Brokers  
- Shipping Agents  
- Transporter  Private  Ongoing and case to 
case   Launching for 
traders, customs 
brokers, shipping agentes, and  
transporters are 
done simultaneously  
with the respective  
OGAs when they are 
launched  
Interface with 
Indonesia  Government  December 2022  In progress  First meeting with 
DGCE -RI was held 
in December 2021  
Currently the two parties are planned 
for the second 
meeting in August or 
September  
Second phase  
Interface with a 
CPLP Country 
(Brazil)  Government  2023 Pending  Pending  
Interface with CPLP 
SW Government  2023 Pending  Pending  
Gateway between 
CPLP and ASEAN 
Countries  Government  2023 Pending  Pending  
 
The Timor -Leste National Single Window project is divided into two  phases.  
The first phase  involves nine  Government agencies, one private company (Bollore –  New Timor Port), 
and Indonesia:  
• Trade Invest Timor -Leste ; 
• Ministry of Tourism, Commerce and Industr y; 
• National Directorate for Land Transport;  
• Ozone Depleting Substance Directorate under the Secretary State for Environment;  
• Ministry of Health ; 
• Quarantine Authority, Ministry of Agriculture and Fisheries ; 
• Port Authority of Timor -Leste ; 
• New Timor Port (Bollore company) ; 
• Tax Authority, and the Public Institute on Registry Service and Business Verification (SERVE ); 
• Immigration Services ; 
• Indonesia.  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 132 - 
 
  In addition, this phase will include engagement with the private sector (traders, brokers, shipping 
agents and transporters) who are the intended users of the single window platform.  
This process includes: (i) capacity building for government staff; (ii) reviewing and optimizing 
internal processes of each institution; and (iii) providing electronic infrastructur e to each government 
agency under the ASYCUDA World Platform.  
Accordingly, the Government, through the Customs Authority, has provided familiarization sessions 
to the nine government agencies and is reviewing each government agency internal process. 
In addition, during this phase, the Customs Authority is planning to engage with some private 
institutions, including commercial banks, with a hope to reach an agreement soon.  
Linkage between Timor -Leste's National Single Window and Indonesia's Pilot data excha nge system 
under the MoU on Cross Border Trade between Indonesia and Timor -Leste is in the Government's 
agenda. This will ultimately facilitate linkage with the ASEAN Single Window.  
The second phase will involve implementation of data exchange with CPLP co untries, CPLP Single 
window and ASEAN Single Window. The plan is to link Timor -Leste's National Single Window and 
Brazil as a selected CPLP member state, and to further finalize the linkage between the ASEAN and 
CPLP regional Single Window via the National TL-TSWS gateway.  
    
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 133 - ANNEX 12 
Categories of commitments under the WTO Trade Facilitation Agreement  
Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C) 
Article 1  Publication and Availability of Information  
Article 1.1  Publication  B 2023 2025 - 
Article 1.2  Information 
Available through 
Internet  B 2023 2025 - 
Article 1.3  Enquiry Points  B 2022 2024 - 
Article 1.4  Notification  B 2022 2024 - 
Article 2  Opportunity to Comment, Information before Entry into Force , and Consultations  
Article 2.1  Opportunity to 
Comment and 
Information 
Before Entry into 
Force  A - - - 
Article 2.2  Consultations  B 2022 2024 - 
Article 3  Advance Rulings  
    A - - - 
Article 4  Procedures for Appeal or Review  
    B 2023 2026 - 
Article 5  Other Measures to Enhance Impartiality, non - Discrimination and Transparency  
Article 5.1  Notification s for 
Enhanced Controls 
or Inspections  B 2022 2024 - 
Article 5.2  Detention  B 2022 2024 - 
Article 5.3  Test Procedures  A - - - 
Article 6  Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation and Penalties  
Article 6.1  General 
Disciplines on 
Fees and Charges 
Imposed on or in 
Connection with 
Importation and 
Exportation and 
Penalties  A - - -   
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 134 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C) 
Article 6.2  Specific 
Disciplines on 
Fees and Charges 
for Customs 
Processing 
Imposed on or in 
Connection with 
Importation and 
Exportation  A - - - 
Article 6.3  Penalty Disciplines  C 2023 2026 Human resources/Training:  
• Capacity building and training for Customs officials on the implementation and 
application of this provision  
Article 7  Release and Clearance of Goods  
Article 7.1  Pre-arrival 
Processing  B 2022 2025 - 
Article 7.2  Electronic 
Payment  B 2022 2024 - 
Article 7.3  Separation of 
Release from Final 
Determination of 
Customs Duties, Taxes, Fees and 
Charges  B 2022 2025 - 
Article 7.4  Risk Management  B 2023 2026 - 
Article 7.5  Post-Clearance 
Audit B 2023 2026 - 
Article 7.6  Establishment and 
Publication of 
Average Release 
Times  B 2022 2024 - 
Article 7.7  Trade Facilitation 
Measures for Authorized 
Operat ors B 2022 2025 - 
Article 7.8  Expedited 
Shipments  B 2023 2025 - 
Article 7.9  Perishable Goods  B 2022 2025 - 
Article 8  Border Agency Cooperation  
    B 2022 2024 -   
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 135 - Provision  Heading/ 
Description  Category  Indicative date 
for 
implementation 
(for categories B 
and C)  Definitive date 
for 
implementation 
(for categories B 
and C)  Assistance and support for Capacity Building Required for Implementation 
(for category C) 
Article 9  Movement of Goods Intended for Import under Customs Control  
    B 2022 2024 - 
Article 10  Formalities Connected with Importation, Exportation and Transit  
Article 10.1  Formalities and 
Documentation 
Requirements  B 2022 2024 - 
Article 10.2  Acceptance of 
Copies  A - - - 
Article 10.3  Use of 
International 
Standards  A - - - 
Article 10.4  Single Window  B 2022 2024 - 
Article 10.5  Pre-shipment 
Inspection  A - - - 
Article 10.6  Use of Customs 
Brokers  A - - - 
Article 10.7  Common Border 
Procedures and 
Uniform 
Documentation 
Requirements  A - - - 
Article 10.8  Rejected Goods  A - - - 
Article 10.9  Temporary 
Admission of 
Goods and Inward 
and Outward 
Processing  B 2022 2024 - 
Article 11  Freedom of Transit  
    B 2023 2024 - 
Article 12  Customs Cooperation  
    A - - - 
 
 WT/ACC/SPEC/TLS/5/Rev.3  
 
- 136 - 
 
  ANNEX 13 
List of goods that are exempted from import duty  
(a) If the goods accompany a person arriving in Timor -Leste from another territory:  
(i) Two hundred (200) cigarettes and two and one hal f (2.5) liters of excisable beverages 
per person;  
(ii) Goods up to a value of US US$300 of a non -commercial nature that are exclusively for 
the personal use or enjoyment of travelers or goods intended as gifts, when the nature 
and quantity of the goods ind icate that they are not imported for, or intended to be 
imported for, commercial purposes;  
(iii) Goods of a non -commercial nature, other than jewelry, that are exclusively for 
the personal use  or enjoyment  of travelers  and that are brought  into Timor -Leste  by 
travelers  in accompanying luggage or carried on or about the travelers ' bodies;  
(iv) Household effects accompanying former residents of Timor -Leste returning to reside in 
Timor -Leste on a permanent basis.  
(b) Imports of the type:  
(i) Exempted under the Vienna Conventions on Diplomatic Relations of 1961 and Consular 
Relations of 1963;  
(ii) Exempted under the Convention on the Privileges and Immunities of the United Nations;  
(iii) Exempted under the Convention on  the Privileges  and Immun ities of the Specialized 
Agencies.  
(c) Goods re -imported in the same condition in which they were exported.  
(d) Goods, other than alcohol or tobacco, imported by registered charitable organizations, being 
charitable organizations that have registered under  any law of Timor -Leste that has been 
promulgated for that purpose, if the goods are to be used for charitable purposes of humanitarian assistance and relief, education or health care.  
(e) Goods for temporary admission, if the importer has provided security for import duty in 
the prescribed manner.  
(f) Goods for consumption by international staff of UNMIT or members of the Peace Keeping Force 
from contingent countries, if the goods are sold in conformity with prescribed rules of sale.  
(g) Baby formulas that are specially designed for babies under one (1) year of age so that after 
preparation they are consumed in a liquid form and provide the health benefits of human milk  
that would normally be provided to a baby that suckles from its mother.  
(h) Tampons and sanitary napkins.  
(i) Goods not described in previous paragraphs if:  
(i) Goods imported into Timor -Leste other than as personal goods accompanying 
a traveler;  
(ii)  Import duty that would be imposed on the import if not for this paragraph would be 
US$10 or less ; 
(j) Importation, by the State or other public legal persons, of arms and ammunition for the National 
Police of Timor -Leste, the Scientific Police for Criminal Investigation and the Defense Forces of 
Timor -Leste.  
(k) Importation  of goods that are donated, or used, in the production or construction of goods that 
are donated, to the State by foreign States, by public collective persons of foreign States, or by international organizations.    
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 137 - 
 
  ANNEX 14 
Fees and charges for services rendered  
provided in Customs Code (De cree-Law No. 14/2017 of 5 April  2017)  
Article of 
Decree- Law 
No. 14/2017  Name of the Charge  Amount ( US$) 
Article 101  Administrative Penalty for incorrect customs 
declaration resulting in underpayment  Not specified in the Decree -
Law 
Article 136.2  Administrative fine for failing to submit goods  to 
customs  Not specified in the Decree -
Law 
Article 136.3  Administrative fine on the person responsible  for the 
means of transport who does not comp ly with the 
obligation to present the goods to customs in 
situations of missing goods  Not specified in the Decree -
Law 
Article 136.4  Administrative fine on the person responsible for the 
means of transport, where the number of unloaded 
volumes exceeds the number notified to customs  Not specified in the Decree -
Law 
Article 139.4  Administrative fine on any person removing goods 
from the areas under customs control before their 
release for free circulation  Not specified in the 
Decree- Law 
Article 1 45.5 Administrative fine on any person for failing to inform 
Customs on goods of commercial character  Not specified in the  
Decree -Law 
Article 187.1  Fee for temporary importation  For each month or  part 
month, 3% of the full duty  
Article 188.5  Administrative fine for failing to re -export goods 
temporarily imported within required time limit  Not specified in the Decree -
Law 
Article 201.5  Administrative fine for taking goods from warehouse 
before Customs authorization  Not specified in the Decree -
Law 
Article 201.6  Administrative fine for failing to notify Customs of 
exact quantity of goods in warehouse   Not specified in the Decree -
Law 
Article 202.3  Provision of financial guarantee for customs duties 
suspended during warehousing  50% of the duties  Due 20 -
30% of any excise due  
Article 273.2  Fee for clearance of goods where customs formalities 
have not been complied with within required time 
limits, and goods have been stored beyond legal time 
limits  The amount of customs duties  
and other duties ow ed plus a 
fee of 5% of the value  of the 
goods  
Article 315.7  Compensatory interest where the incurrence of the 
debt or liquidation is delayed for reasons attributable 
to the declarant  4% 
Article 320.5  Interest on late payment of duties and charges  For each month or part month 
of arrears, 3% of the total 
debt 
Article 377.1  For the arrival, control and departure of each ship 
performing commercial operations of merchandise or 
passengers.  US$ 100/ per ship  or US$  
200*/ ship plane (*Sunday, 
holiday, night)  
Article 377.2  For visits aboard, sealing, verifications,  US$ 50 or US$  100* for  
processing of each 
administrative document  
Article 378.1  For arrival, control, and departure of each plane 
performing commercial operations of merchandise or 
passengers.  US$ 100 / plane  or US$  200*  
Article 378.2  For visits aboard, sealing, verification  US$ 50 / or US$  100* / 
procession of each 
administrative document  
Article 379.1  For entry and fiscal clearance of merchandise in each 
land transport vehicle of commercial transport  US$ 25 or US$  50* / vehicle 
at a customs post  
US$ 50 or US$  100*/ vehicle 
at other locations  
Article 380.1  Entering and clearance of unaccompanied baggage  US$ 10 or  US$ 20* 
Article 380.2  Entering and fiscal clearance of automobiles  US$ 25 or  US$ 50* 
Article 380.3  Entering and fiscal clearance of bicycles and 
motorcycles  US$ 15 or  US$ 30* 
Article 381.1  For each operation or assistance of denaturation, 
coloration, fiscal marking, or destruction of 
merchandise  US$ 10 or  US$ 20* WT/ACC/SPEC/TLS/5/Rev.3  
 
- 138 - 
 
  Article of 
Decree- Law 
No. 14/2017  Name of the Charge  Amount ( US$) 
Article 382.1  For any services at the request of taxpayers, 
involving the displacement of employees outside of 
the Customs facilities  Up to 40 km travelled: US$  
25 
Up to 100 km travelled: US$  
50 
More than 100 km travelled: 
US$ 75 
If overnight stay:  US$ 30 
Article 383  Fee for underpaying if final verification is a duty of 
more than US$50  US$ 10/ declaration  
Note: Administrative fines or penalties describ es in Article 101, 136, 139, 145, and 188  are not specified in 
the law . Amount to be defined through other regulation. 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 139 - 
 
  ANNEX 15 
Action P lan on drafting the Law on Value Added Tax  and the Taxes and Duties Act 
(revision)  
In its effort to improve tax collection, the Government of Timor -Leste is in the process of 
drafting/revising three laws, which include: the Taxes and Duties Act (revision), the Tax Proceedings 
Code and the L aw on Value  Added Tax . 
The timelines for the development and implementation of the laws are as follows:  
i. Revised Taxes and Duties Act :  
Action to be taken  Target f or completion  Status  
• Revisit the revised draft law by the Ministry of Finance  1st half of 2022  In progress  
• Seek opinions, comments and feedback from any 
third party on the revised law as well as public 
consultation and discussion with relevant private 
and public stakeholders  1st half of 2022  In progress  
• Discussion and approval by the Council of Ministers  1st half of 202 3 Pending  
• Discussion and approval by the National Parliament  2nd half of 2023  Pending  
• Promulgation by the President  2nd half of 2023  Pending  
• Public awareness on the changes and introduction of 
new articles  2nd half of 2023  Pending  
• Effective Implementation  1st half of 2024  Pending  
ii. VAT Law:  
Action to be taken  Target for completion  Status  
• Development of the draft Policy Paper for VAT Law  December 2015  Done 
• Seek opinions, comments and feedback from any 
third party on the revised law as well as public 
consultation and discussion with relevant private 
and public stakeholders  2nd half of 2023  In progress  
• Discussion and approval by the Council of Ministers  2nd half of 2023  Pending  
• Discussion and approval by the National Parliament  1st half of 2024  Pending  
• Promulgation by the President  2nd half of 2024  Pending  
• Public awareness  2nd half of 2024  Pending  
• Effective Implementation  1st half of 2025  Pending  
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  ANNEX 16 
Action P lan on the Implementation of the WTO Agreement on Technical Barriers to Trade  
Activity/Description  Action to be taken  Timeframe for 
implementation  
Development of national 
standards bodies, including a 
TBT Enquiry Point, and the 
upgrading of national legal 
and regulatory framework s 1. Establishment of a national standard body (IQTL, IP);  
2. Technical assistance to be obtained from the UNIDO and other development partners;  
3. Establis hment of a TBT Enquiry Point;  
4. Develop ment of  national policies, strategies, legal and 
regulatory frameworks on TBT -related measures , 
including with respect to procedures for public 
consultations  2023 
Capacity building  1. Technical assistance to be obtained from UNIDO and 
other development partners;  
2. Training of key officials from the relevant Ministries/ 
Agencies, including: departments under the Ministry of 
Agriculture, Livestock, Fisheries and Forestry (MALFF), 
Ministry of Commerce and Industry (MCI) , Ministry of 
Health, Ministry of Finance, Secretary of State for 
Environment, AIFAESA, IQTL, Customs Authority, and 
the private sector;  
3. Assistance to NSBs for participation in international standardization work and to consumers to take part in 
standardization activities, including Timor-Leste's 
participation at the IEC, ISO, WOAH , Codex 
Alimentarius, IPPC, APPC, OIML;  
4. Development of product testing capacities (micro -
biological, chemical, textile, leather, electrical laboratories) towards inte rnational recognition of their 
services for proof of conformity with foreign buyer requirements;  
5. Development of metrology (calibration), standardization, and accreditation capacities towards 
international recognition of their services for the calibration o f national product testing equipment.  
6. Possible inclusion of NZL recommendations  on 
approaching specialist regional bodies associated with Standardization and Accreditation (APAC, APMP, 
APLMF, PASC).  2025 
Regional harmonization of 
standards and conformity 
assessment systems  1. Develop ment of draft laws on metrology, standards 
and conformity assessment systems and procedures;  
2. Technical review on the draft laws;  
3. Public consultations;  
4. Approval by the Council of Ministers;  
5. Approval by the National Parliament;  
6. Promulgation by t he President of the Republic;  
7. Public awareness consultations; and  
8. Effective implementation.  2023 
Establishment and upgrading 
of inspection and certification 
schemes and services for the 
assessment of conformity 
against product and system 
standards (including ISO 9001, ISO 14001, ISO 
22000) with increased 
emphasis on public -private 
partnerships  1. Develop ment of  specific internal SOP on guidelines for 
inspection and certification schemes;  
2. Develop ment of  a standardized laboratory for 
inspection;  
3. Public awareness consultations, with an emphasis on 
the private sector; and  
4. Effective implementation.  2023 
Development of national 
and/or regional accreditation schemes for the accreditation 
of national laboratories, inspection bodies, 
certification bodies, etc.
 1. Develop ment of a  Law on National Quality System;  
2. Develop ment of  accreditation criteria;  
3. Develop ment of quality assurance and quality control 
standard and regulation on goods;  
4. Public awareness consultation on National Quality 
system Law ; 
5. Establishment of a single Accreditation body;  
6. Effective Implementation.  2024-2025 WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Activity/Description  Action to be taken  Timeframe for 
implementation  
Outreach to  specialist 
regional bodies associated 
with Standardisation and 
Accreditation  1. International Laboratory Accreditation Cooperation 
(ILAC);  
2. Asia Pacific Accreditation Cooperation Incorporated (APAC);  
3. International Accreditation Forum (IAF);  
4. Asia Pacific Metrology Program me (APMP);  
5. Asia Pacific Legal Metrology Forum (APLMF);  
6. Pacific Area Standards Congress (PASC).  2025 
Full implementation of the WTO Agreement on Technical Barriers to Trade   1 January 202 6 
 
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  ANNEX 17 
Invasive Species in Timor -Leste  
Invasion of Chromolaena odorata (Siam weed) in agricultural lands, grasslands, land clearing and 
degraded forests is evident in Timor -Leste and is harmful to both crops and animals. Its ability to 
spread rapidly increases the risk of  bush fire s. Other iden tified and potential invasive species are 
Lantana gorse, Catharanthus roseus, Jatropha gossypifolia, Ziziphus mauritiana and Calotropis 
gigantea.  
The Global Invasive Database lists the following invasive species found in Timor Leste :1 
Chromolaena odorata, Leucaena leucocephala, Thevetia peruviana, Mimosa diplotricha, Cyprinus 
carpio, Lutjanus kasmira, Gallus gallus, Porphyrio porphyrio, Cervus timorensis russa, and Varanus 
indicus. Studies also provide the habitat, geographical range and degree of invasiveness of these 
species.  
Meanwhile, please see table below on the Annex II of the Decree- Law, which has listed the 
Provisional List of Prohibited Invasive Species identified according to the list of plants and animals in the National Biodiversity Strategy and Action Plan, coupled with the invasive species identified in the Global Invasive Species Database (GISD) portal document, as follows: 
Provisional List of Prohibited Invasive Species  
Taxonomic Name  English Common Name(s)  
Bufo marinus  Cane Toad  
Duttaphrynus melanostictus  Common Asian Toad  
Cyprinus carpio  Common carp  
Aedes aegypti  Yellow fever mosquito  
Paratrechina longicornis  Crazy ant  
Varanus indicus  Mangrove monitor  
Jatropha gossypifolia  - 
Sida acuta  Common Wireweed  
Lantana camara  - 
Tithonia diversifolia  - 
Parkinsonia sp.  Palo Verde  
Prosopis pallida  Mesquite  
Ziziphus mauritiana  Rhamnaceae  
Chromolaena odorata  Siam Weed  
Mimosa diplotricha  Giant sensitive plant  
Leucaena leucocephala  - 
Thevetia peruviana  Yellow oleander  
  
 
1 Invasive Species in Timor -Leste. The Global Invasive Species Database:  
http://issg.org/database/species/search.asp?st=sss&sn=&rn=Timor -
Leste%20(East%20Timor)&ri=18888&hci= -1&ei= -1&fr=1&sts=&lang=EN   
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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Action Plan for the Implementation of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures 
Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
Strategy 1  
 
Establish a centralised food control system and regulatory framework:  
 1. Establish new or strengthen 
existing ministries with food related responsibilities ; 
 2. Combine and/or centralize food control responsibilities between MAF, MoH, MTCI and AIFAESA;  
 3. Clarify responsibilities for food control across the Government; and  
 4. Establish new or strengthen 
existing infrastructure  
                    
Establish a National Mechanism for 
management of all facets of food 1.1. Institutionalization of food control  
- Establish a functional Food Control System to be 
responsible for and coordinate food control activities in the country , with capacity to undertake the following to 
international best practice:  
 Risk assessment – sanitary and phytosanitary  (SPS) ; 
Quarantine and biosecurity inspection and certification;  
Sample collection and analysis by an accredited, newly established modern national food laboratory; Develop SPS control measures; Develop SPS policy and legislation; Establish relevant and appropriate enforcement, monitoring and evaluation activities; Develop scientific and technical expertise and training capabilities as a critical priority.  
 - Two options depending on political appetite: 
 1. Establish a new single Food Control Agency Model 
within one ministry; OR  
 2. Establish an Integrated Multi Agency Food Control Model using existing ministries – MoH, MA LFF, MCI, 
AIFAESA.  
 - Clarify each ministry 's responsibility under the Multi-
Agency Model (e.g. MoH, MA LFF, MCI, AIFAESA) and 
remove food control responsibilities and activities from other current ministries (MoF, MoE, etc) to avoid confusion and foster collaboration.  - Promote collaboration and cooperation between critical 
Directorates e.g. Quarantine/Biosecurity and Veterinary. Appoint Directors with technical background and expertise. Mandate collaboration and share resources, training activities and ups killing. 
 
- Establish a National Food Control Management Board or 
Committee under an appointed experienced Chair, - New nationally coordinated Food 
Control System established and operational based on single or multi- agency m odels supported by 
appropriate legislation 
             Single or Integrated Multi -Agency 
Food Control Model established and operational with clear responsibilities institutionalized by legislation               
- National Food Control 
Management Board/Committee 2023 – 2025  
   
 
             2023 – 2024  
      2023 – 2024  
           2023 – 2024  
  
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control and dissemination of 
information  
 
 
 
 
 
 
 
 
 
  
  
 
 
-Technical Committees  
  
 
 
 
 
  
 
 
 
- Food Safety Laboratory  
  
 
 
 
 
 
 
  
 
 
  
 
 assisted by a small Secretariat  to coordinate and oversee 
the implementation of all food control activities across the Government.  
 The Natio nal Management Board or Committee should be 
the national mechanism to publicise and notify all relevant organisations, trade partners and foreign 
governments of all relevant information on adopted or 
proposed SPS measures, quarantine and inspection 
procedu res, pesticide tolerances and food safety 
standards.  
 This mechanism should include a National Enquiry Point 
for WTO SPS Measures, Codex Office, ASEAN, OIE and IPPC management. 
 
- Establish National Technical Committees responsible to 
the National Food Control Management Board to coordinate and oversee the development and 
implementation of activities for SPS measures,  including 
the development of relevant legislation e.g.:  
 
• Food Safety Committee (animal health and disease, human health) 
• Plant Pest and Disease Committee 
• Enforcement, Monitoring and Evaluation 
Committee.  
 
- Establish a National Food Safety Laboratory:  
 In the short term, combine existing food safety (MoH), 
quarantine and biosecurity (MA LFF), and plant safety 
(MALFF) laboratories in a new f acility as start of a new 
National Food Laboratory;  
 
In the short term, ensure existing laboratory capacity is 
maintained whilst building new capacity for analysis of plant, animal and human health;  
 
Conduct training workshops for laboratory staff using 
external providers – foreign governments (e.g.,  EU, US, 
Australia), NGOs, World Bank, WHO/FAO, ASEAN, APEC;  
In medium term, establish new National Food Reference 
Laboratory in new dedicated facility;  established. Chair, Secretariat and 
membership in place and regular 
meetings operational and 
documented;  
-Reports of the meetings prepared 
and distributed;  
 
-Regular reports on the 
achievement of established programme targets.  
  
 
 
 
 
- National Technical Committees 
established and operational;  
- Supporting legislation approved 
and in place;  
- Food, plant and animal safety 
measures developed and in place.  
 
- National plan for financial 
feasibility  
 
  
 
 
 
 
 
- Skilled staff with education in 
applied sciences chemistry, microbiology and biology;  
 - Records and reports of training on 
laboratory quality assurance and on 
analytical methods;  
 
- Quality assurance documentation 
complete.   
 
 
 
 
 
 
 
 
 
 
 
 
 
  
2023 – 2024  
  
 2024 – 2025  
  
  
 
2023 
  
 
 
2023 
  
 
 
2023 – 2024  
 
 
 
2023 – 2025  
  
 2024 – 2025  
  
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 - Quarantine and Inspection facilities  
  
 
 
 - Staff training centres  
 
 
 
 
 
 
Develop standards and codes of good 
practice (or adopt appropriate 
international  standards ) across the 
agri-food chain  
 
 
 Food Control Law   
Acquire sufficient infrastructure, equipment and traine d 
staff to allow the new laboratory to facilitate all country 
requirements for human food, plant and animal health and safety, and work towards international best practice s 
and accreditation – internal (Government) and external 
funding (Foreign governments , NGOs, World Bank);  
 Provide specialized, hands -on training on microbiological 
and chemical parameters according to the specific needs of the laboratory; 
 
Achieve ISO 17025 accreditation for microbiology and 
chemical parameters;  
 
Provide services to private sector.  
 
- Establish dedicated Quarantine and Inspection and 
Veterinary Services facilities;  
- Co-locate Quarantine and Inspection Directorate with 
the Veterinary Services Directorate;  
 
- Establish new facilities or adequately provide assistance 
and support for existing staff training facilities using a 
combination of the Government and external providers 
funding and resources;   
Specialised training provided on 
microbiological  and chemical 
analysis  
 
- ISO 17025 accreditation for 
selected chemical and microbiological parameters;  
 - Participation in inter -laboratory 
comparisons;  
 
- Laboratory reports;  
 - Feedback from "users"  of 
laboratory services.  
 
Adequately staffed and a ppropriate 
dedicated space and facilities allocated and operational for 
Quarantine and Inspection and 
Veterinary Services.  
 
Appropriate facilities established 
and given ongoing support.   
2023 – 2024  
  
 
2023 – 2026  
  
 
 
 
 
 
 
2023 – 2024  
 
 2023 – 2024 
  
 
 
 2023 – 2024  
1.2. Develop new or strengthen existing appropriate, enforceable legislation to support SPS measures, including a Food Standards Code 
– cover ing food safety, plant pests and disease, and animal health, quarantine, inspection and certification, enforcement, monitoring 
and evaluation . 
-Review current legal framework and formulate an 
overarching food control framework under direction of the National Food Control Board and Technical 
Committees to discuss, adopt and make recommendations to approve, plant, animal health and 
food safety stand ards; 
 
-Develop an overarching general Food Control Law; 
  
- Develop a Food Standards Code (similar to ANZFSC) 
containing all regulations on priority areas for the 
Government : food additives, contaminants and natural 
toxicants, Maximum Residue Limits ( MRLs) for - Food Control Framework 
developed to support nationally coordinated Food Control System . 
  
 
 
- Overarching Food Control Law 
adopted.  
 
- New Food Standards Code with 
regulations on priority areas: food 
additives, contaminants and natural 
toxicants, MRLs for agricultural and 2023 – 2024  
 
 
 
 
 
 
2023 – 2024  
  
2023 – 2025  
  
  
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agricultural and veterinary chemicals (agro -food inputs 
such as pesticides), food labelling, special standards (e.g. 
infant formula, GM foods, etc.);  
   - Use established Technical Committees (see above) to 
discuss, develop and obtain Government's approval of 
plant, animal health and food safety standards.  
 - Develop (or preferably adopt existing internationally 
available) manuals on:  
- Good Hygiene Practices;  
- Good Agriculture Practices;  
- Good Animal Husbandry Practices; 
- Good Aquaculture Practices;  
- Good Manufacturing Practices;  
- HACCP.  
 
-Provide training workshops to manual users.  veterinary chemicals (agro -food 
inputs such as pesticides), food labelling, special food standards 
(e.g. infant formula, GM foods, etc.). 
 Technical committees established and operational covering plant, animal health and food safety . 
 Manuals adopted and distributed to users.  
       
Training conducted.   
     2023 – 2024  
   2023 – 2024  
        
2023 – 2024  
Strategy 2  
 Develop scientific and technical capacity for risk analysis (risk assessment, risk management, risk communication) and standards development  
  2.1. Establish a mechanism to provide scientific and technical training for staff  of the Government of Timor -Leste  to cover all aspects of 
SPS measures work  
- Establish a new authority or appoint an existing  
ministry or authority responsible for ensuring that 
appropriate Government personnel are properly trained in all aspects of food control along the whole agri- food 
chain (risk assessment, quarantine, inspection and certification, monitoring and surveillance, laboratory analysis, etc.). 
 -Establ ish staff training centers (see above under 
Establish new or strengthen existing infrastructure);  
 
-Identify and utilise appropriate external training 
providers e.g. foreign governments and NGOs (UNDP, 
WBIFC, FAO, WHO).  Ministry or authority appointed with 
responsibility for food control system training of Government staff;  
    Staff training centers established and operational;  Resources identified and external providers engaged.  2023 – 2024  
       2023 – 2025  
  2023 – 2024  
2.2. Participation of Timor Leste in international fora supported by adequate resources  
- Accession of Timor -Leste to Codex Alimentarius 
Commission. Ensure attendance and establish National Codex Contact Point reporting to National Board (Note: 
Codex, WTO, SP S EP, OIE, IPPC and ASEAN contact 
points co -located);  - Member of Codex2  
   
 2023  
   
 
 
2 Timor -Leste became the 188th member of the Codex Alimentarius Commission on 21 February 2018.  
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-Accession of Timor -Leste to IPPC and active 
participation; 
 -Become member of ASEAN and the World Trade 
Organisation and ensure appropriate resources for active participation;  -Promote the participation of Timor -Leste in international 
committees (CAC, IPPC, OIE, and INFOSAN).  
  
- Member of IPPC3  
  - Member of ASEAN, WTO
4  
   
- Documentation of Timor -Leste 's 
participation in international 
committees   
2023  
  2023  
   2024 – 2025 
Develop scientific and technical 
capacity for risk analysis (risk assessment, risk management, risk communication) and standards development  2.3. Development of a Co -located National SPS , Enquiry Point, Codex, ASEAN, OIE and IPPC  Contact Points  
- Operationalization of a co -located SPS, Codex, OIE, 
IPPC enquiry point to meet the obligations under the WTO SPS Agreement;  
      - Train personnel on Codex Risk Analysis principles, 
WOAH  and IPPC procedures and the SPS/TBT 
agreements;  
    -Develop SoPs f or handling national and international 
enquiries on technical regulations, standards and certification schemes;  
 
-Disseminate information to value chain participants on 
WTO SPS notifications, Codex standards, WOAH  and IPPC 
matters.  - SPS Enquiry Point dev eloped;  
- Codex, OIE, IPPC and ASEAN 
Enquiry Points developed;  
 - Co-locate all enquiry points, if 
possible, with a single Secretariat and responsible to the National Management Board;   - Personnel trained in risk analysis, 
SPS/TBT, Codex procedures and standards;  
 - Training records of skilled 
personnel.  - SPS/TBT SOP 's for handling 
national/international enquiries developed  
 
- Factsheets, brochures, and guides 
developed and disseminated to 
value chain actors  2023 – 2024  
        2023 – 2024  
      2023 – 2024  
   2023 – 2024  
Strategy 3  
 Conduct SPS  data collection and 
undertake risk assessments  and 
make regionalization determinations 3.1. Mechanisms to prevent risks across the entire food chain – SPS issues  
- Collect relevant data on SPS risks across the entire food 
chain, e.g.: 
Plant pests and diseases  
Animal health 
Food Safety   - Data collection operational for 
both S PS areas for plant pests and 
diseases, and animal diseases  
 
 2023 – 2025  
   
 
 
3 Already an observer.  
4 Accession process already begun.   
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to prevent risks across the entire 
food chain 
 
Utilise data already collected on Phytosanitary issues, and collaborate with proposed initiatives and action plans already planned by various foreign governments and NGOs e.g. Australian DAFF and WB IFC  
     Phytosanitary Risks  
           
 
                 
  
- Using collected and verified  data, establish a WTO -
consistent risk assessment methodology, based on the principles established by Codex, WOAH and IPPC , and 
conduct risk assessments to protect plant, animal and 
human health;  
 
- In the case of plant pests and diseases, identify the 
pests or d iseases that may enter  into the country, their 
mode of establishment or spread, and the potential biological and economic consequences.  Evaluate the 
likelihood of entry, and of establishment or spread of such pests or diseases.   
 - For phytosanitary measures, immediate priority actions 
should be:  
1. For imports, to access and collaborate with any existing plans for plant safety being considered by the Government. The short- to-medium term priorities should 
be to undertake the more than 500 IRAs that are need ed 
to assess the risk posed by imports into Timor -Leste, and 
this work will require:  
• Compar ing lists of pests and diseases in 
exporting countries with those present in Timor -
Leste;  
• Determining  which pests are associated with the 
imported product;  
• Determining  which pests pose an unacceptable 
risk; 
• Manag ing the risks by imposing conditions, 
treatments, certification, and inspection of imported products to ensur e compliance, 
refusing trade and post- entry quarantine risk 
mitigation measures;  
• Strengthening  inspection processes and creat ing 
a central database for the categorization of businesses and foods based on risk.   
• Making regionalization determinations  based on 
assessment of  the phytosanitary characteristics 
of a region, tak ing into account, inter alia, the 
level of prevalence of specific diseases or pests, the existence of eradication or control programmes, and appropriate criteria or guidelines developed by the relevant 
international organizations.   
- Data verified and used to conduct 
risk assessments; risk assessment methodology established  
   - Plant pests and diseases identified 
and catalogued  
 - Consequences evaluated  
   - Collaborations  negotiated  
 - IRAS started  
         
 
                 
  
2023 – 2025 
     2023 – 2025 
  2023 – 2025 
   2023 – 2025 
 2024 
     2023 – 2025 
  2023 – 2025 
 2023 – 2025 
 2023 – 2025 
    2023 – 2025 
  2024- 2025 
      
  
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Sanitary Risks  
  
 
  
 
 
 
 
  
 2. For exports, to undertake work to facilitate exports of 
plant products by:  
• Participating in the IRA of importing countries by 
providing lists of pests present in Timor -Leste,  
• Negotiating  import conditions with importing 
countr ies,  
• Ensur ing that the conditions for export to the 
importing countries are met, and develop ing 
appropriate certification for the 11 plant product exports (Arabica and Robusta coffee, Candle 
Nut, Coconut, Tamarind, Mung Bean, Peanut, 
Corn, Cloves, Vanilla  and Sandal Wood) to the 
23 countries where Timor -Leste exports these 
commodities.  
 
• Increasing  technical capacity needed to assess 
the risks associated with export trade including : 
 
1) Producing a list of pests and diseases present in Timor -Leste and deciding which risks need to be 
managed,  
2) Developing appropriate measures to manage 
these risks,  
3) Confirming that risk management measures are effectively preventing the entry of viable 
organisms (e.g. inspect imports and identify 
organisms intercepted), and  
4) Participating  in the negotiation of the conditions 
imposed on exported products by importing trade partners.  
  
- For the sanitary measures to work, the action plan is to 
access and colla borate with any existing plans for food 
safety being considered by the Government, for example 
between AIFAESA and MoH, and the SoW prepared by USAID/TAMU/Avansa, together with a comparison with 
food safety systems already established internationally in 
other countries (Indonesia, China, Australia), FAO/WHO 
and Codex.  
 
- The short- to-medium term priorities for food safety 
should be:  
• Begin ning the comprehensive collection of 
databases on food composition and food  
- Exported food risks work 
operationalised;  
 
- Lists of pests in Timor -Leste 
provided to trading partners to expedite importing country IRAS;  
 - Negotiations taking place;  
 - Export conditions of trading 
partners met and appropriate certifications operational.  
   
  
Technical capacity building 
initiatives established and ongoing; 
 
List of plant pests and disease 
developed and utilised;  
 
Measures developed;  
 
Risk measures working and 
effective;  
 Participation in export trade 
negotiations ongoing;  
  
 
 
 
  
 
 
 
 
  
2023 – 2025 
  
2023 
  
 
2023 
 2023 
  
 
 2023 – 2025 
 
 
2023 
  
2023- 2024 
 
 
2023 – 2025 
 
2023 - 2024 
 
 
2023 – 2025 
  
2023 – 2025 
  
 
  
 
 
 
 
 2023 
  
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 consumption using the data already collected on 
foods grown in the country, imported into and 
exported from Timor -Leste by Quarantine and 
Biosecurity and Veterinary Directorates and any other relevant information.  
• Assessing  the suitability for Timor -Leste of 
Indonesian (or Chinese , or both given these 
countries are the biggest trading partners) and 
Codex standards for Maximum Levels (MLs) for 
food additives, chemical contaminants, alle rgens 
and biotoxins, MRLs for pesticides and veterinary drugs, and guidance values for common food -borne pathogens.  
• Undertak ing a risk assessment of each 
food/chemical/biotoxin combination by using 
MLs and MRLs from trading partners (Indonesia, China, Aus tralia or us ing Codex levels), ADIs 
and PTDIs or PTWIs from JECFA, together with estimates of exposure (for an average adult of 
60-70kg and for a child of 20kg) so that the risk 
can be characterized. For example, there are 349 imported food products and hundreds of 
contaminants, food additives and pesticides that 
will each need a separate risk assessment 
calculation.  
• Assist ing with the development of relevant and 
appropriate food safety legislation, including the 
development of a Food Standards Code (Food 
Laws) for Timor -Leste along similar lines as the 
Australian New Zealand Food Standards Code.  
• Assessing  the adequacy of food labelling  for 
food imported into and exported from Timor -
Leste. Compar ing and contrast ing with labelling 
standards from Codex and ex porting countries. 
 
• Assessing  capacity within G overnment  and UNTL 
for food safety risk assessment, including chemistry, biology and risk assessment 
(toxicology, microbiology) and exposure 
assessment.  
• Making recommendations to the Government 
based on capacity assessment . 
• Develop ing or recommend ing appropriate 
guidance documents , training manuals and 
materials for risk analysis capacity building.  Data collection on food composition 
and consumption started and 
ongoing;  
  
Food safety standards of exporting 
countries assessed and compared 
with Codex standards; 
 
 
 
  
Risk assessments underway and 
ongoing;  
  
 
 
 
 
 
 
 
 Food legislation is developed and 
operationalised. Food Standards 
Code established;  
 
 
Adequacy of food labelling assessed 
and compared with Codex and 
exporting countries. Remedial 
enforcement action taken where 
necessary;  
Capacity within Government and other sources assessed;   
   
Recommendations developed and 
submitted to the Government; 
Guidance documents and training manuals developed and in use; 
 2023 – 2024  
 
 
 
 
2023 – 2026 
  
 
 
 
 
 
2023 – 2024 
 
 
  
 
 
 
 
  
 
2023 – 2024  
  
 
 
2023 – 2026  
  
 
 
2023 – 2025 
 
 
 
 
2023 – 2025 
 2023 – 2025 
 
  
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                  Identify SPS measures commensurate with risk assessments  
    
 
Establish appropriate ALOPs  
        Develop Monitoring and Surveillance Systems  
  Enforce SPS Measures  • Develop ing "train the trainers " SPS modules to 
target food chain personnel in food safety, GHP, GAqP, GAhP, GMP and HACCP ; 
         
• Making regionalization determinations based on 
assessment of the sanitary characteristics of a region, taking into account, inter alia, the level of 
prevalence of specific diseases or pests, the 
existence of eradication or control programmes, and appropriate criteria or guidelines developed by the relevant international organizations. 
 
- Based on the above risk assessments work, identify ing 
SPS measures for each risk that will mitigate it according to scientific evidence, either obtained from scientific literature or developed in- country , and developing a 
WTO-consistent risk assessment methodology based on 
principles of Codex, WOAH and IPPC.  
 - For each SPS measure, establish ing an Appropriate 
Level of Sanitary or Phytosanitary Protection, or ALOP, based on the risk and available measures to mitigate it, ensuring that such ALOPs are justifiable by the risk assessment and are consistently applied so as to avoid arbitrary or unjustifiable distinctions in the level of protection, if such distinctions would result in a disguised restriction to international trade.  - Establishing  monitoring and evaluation systems for the 
assessment of introduced food control measures across the entire  food chain;  
 
- Enforc ing SPS measures based on risk assessments in 
line with international best practices.  Training materials developed and 
delivered to target groups using "train the trainers " modules on SPS  
topics;  
Records on training; Baseline and endline surveys before and after trainings and enforcement;  
Records from food safety, GHP, GAqP, GAhP, GMP and H ACCP 
activities; Chemical free food products;  
        SPS measures developed , 
operationalised and enforced;  
    
 
ALOPs established;  
Adoption and enforcement of integrated plant pest and diseases, animal disease and food safety management strategies;  
    SPS measures monitored and evaluated;  
  SPS measures enforced . 2023 – 2026 
           2024- 2025 
       2023 – 2026  
     
 
2023 – 2027 
        2023 – 2027 
   2023 – 2027 
Strategy 4  4.1. Develop food -borne illness surveillance and response systems   
  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 152 - Strategies  Objectives and Outcomes  Performance Indicators  Timeframe for implementation  
Food-borne illness surveillance and 
food safety response systems  
 - Strengthen ing food-borne illness surveillance and 
emergency response activities; 
 
 - Develop ing procedures to evaluate and track food -
borne illnesses outbreaks;  
- Training Health Officers for data collection, information 
and reporting on food -borne illnesses  
 - Develop ing a national network for collecting, collating, 
reporting, and disseminating data to the public  
 
- Estimating  the burden of food -borne illnesses in Timor -
Leste.  - Food-borne disease surveillance 
documentation and surveys  
developed ;  
 - SOPs adopted;  
 - Training records; 
- Collected data; 
 - Evaluation reports/audits; 
- Monitoring reports;  
 - Disease surveillance reports.  2023 – 2025 
   2023 – 2024 
 2023 – 2024 
  2023 – 2025 
  2023 – 2025 
Strategy 5  
Transparency: notification and access to documentation (a) identification of authority responsible for making 
notifications to the WTO and ensuring transparency 
obligations are met on an ongoing basis  
 
(b) establish guidance or law requiring publication of 
proposed measures at an early stage for comment  
 
(c) provision in law or administrative procedure to 
provide copies of proposed measures to WTO Members; 
and,  
(d) require in law or administrative procedure, a 
reasonable period of time for comment from Members and the public, and establishment of a process to take 
comments into account without discrimination.   2023 
   
2024 
 
 2024 
   2024 
Full implementation of the SPS Agreement  1 January 2028  
 WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 19 
Action Plan for the Implementation of the WTO TRIPS Agreement   
Activities  Actions to be taken  Timeframe  
Signing of the MoU between the 
Government of Timor -Leste and the 
World Intellectual Property 
Organization (WIPO) to undertake 
their assistance in developing an IP 
regime and to prepare the ground for 
the national IP strategy development 
process  1. Technical validation of the MoU;  
2. Signing of the MoU. November 
2021 
Formulation and implementation of 
National IP Strategy  1. With the Assistance of WIPO, Timor -Leste will 
conduct its groundwork for the national IP strategy development process; and  
2. Conduct stakeholders ' meetings and identify 
the necessary IP regime to ensure its 
compliance with the WTO TRIPS Agreement.  2022 
Development of Law on Copyright and 
Related Rights  1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings; 
3. Develop the draft laws; 
4. Public consultations; 
5. Approval at the Council of Min isters;  
6. Approval at the National Parliament; 
7. The President of the Republic's promulgation; 
8. Public awareness consultations; and  
9. Effective implementation  2022 
Establishment of a National IP Office  1. Designation of an IP Focal Point in Timor -
Leste; and  
2. Provision of  the necessary arrangement s to 
build a National IP Office.  
3. Preparation of related IP laws with the technical assistance from WIPO and other 
Development Partners.  2023 
Development of the Industrial Property  
Code (Marks; Trade Name and Act of 
Unfair Competition; Patents; Utility models; Geographical Indications; 
Industrial designs; Layout Design of 
Integrated Circuits; Protection of Undisclosed Information; and Trade 
Secrets)  1. Creation of a taskforce team compose o f the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings; 
3. Develop the draft laws; 
4. Public consultations; 
5. Approval at the Council of Ministers;  
6. Approval at the National Parliament; 
7. The President of the Republic 's promulgati on; 
8. Public awareness consultations; and  
9. Effective implementation.  2022 - 2024 
Capacity Building  1. Training of personnel, including customs 
officials, police officers, and other officials 
responsible for area s related to Intellectual 
Property;  
2. Dissemination and training on laws related to 
Intellectual Property;  
3. Training of personnel, including customs 
officials, police officers, and other officials 
responsible for protecting registered 
trademark database;  
4. Creat ion of a registered trademark database.  2023 – 2024 
Ratification of WIPO Agreements  1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings; 
3. Public consultations; 
4. Approval at the Council of Ministers;  
5. Ratification of WIPO Agreements; 
6. Public awareness consultations; and  
7. Effective implementation.  2024 WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Activities  Actions to be taken  Timeframe  
Development of Law on Plant Variety 
Protection  1. Creation of a taskforce team compose d of the 
relevant Ministries/Agencies to facilitate the 
process;  
2. Conduct stakeholders meetings; 
3. Develop the draft laws; 
4. Public consultations; 
5. Approval at the Council of Ministers;  
6. Approval at the National Parliament; 
7. The President of the Republic 's promulgation; 
8. Public awareness consultations; and  
9. Effective implementation.  2026 
Full implementation of the TRIPS Agreement  1 January 
2027 
 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 20 
Business vehicles available under new Law No. 10/2017 of 17 May  2017 on 
Commercial  Companies  
(a) Permanent Representation (Branch) of a Foreign Company  
According to Article 3 of Law No. 10/2017,  a company incorporated in another country carrying on 
business in Timor -Leste is subject to the provisions of the law on business registration and must 
register as a permanent representation (branch) of the foreign company ( Article 14 of Decree- Law 
16/2017 of 17 May  2017 on "Business Registration "). It must appoint a legal representative with 
habitual residence in Timor -Leste, allocate capital to carry on busi nesses in the country, and register 
the respective resolutions. The filing for registration must include the documents set out in Decree -
Law No. 35/2012 of 18 July  2012 on "SERVE, I.P. ", including proof of incorporation of the foreign 
parent company in the  country of origin (e.g. certificate of registration), company by -laws, resolution 
by the relevant corporate body of the foreign company on the registration of a permanent 
representation in Timor -Leste, appointment of the local representative(s), allocatio n of capital, a 
power of attorney granting management powers to the representative(s) of the permanent 
representation, and a map depicting the location of the registered offices in Timor -Leste. All 
documents issued abroad should be translated into one of t he official languages of Timor -Leste 
(Portuguese or Tetum) and certified by the Timor -Leste diplomatic representation accredited to the 
country of origin.  
(b) Sole Trader  
A foreign natural person may also carry o ut business in Timor -Leste without need ing to incorporat e 
a company or register a branch of a foreign company by registering himself as a Sole Trader. Article 
33 of Decree- Law No. 7/2006 and Article 24 of Decree -Law No. 35/2012 set out the documents that 
must accompany the filing of registration. A  Sole Trader must trade using his own name, whether 
in full or abbreviated, followed by the abbreviation "ENIN. " A Sole Trader is not permitted to adopt 
any other trading name (Article 42 of Decree- Law No. 35/2012). As previously mentioned, a business 
licence or an Authorization to Exercise Activity must be obtained by the Sole Trader depending on 
whether the activity he wishes to carry out is deemed a low risk or high -risk activity under Decree Law 
No. 35/2012. Also, the Sole Trader must obtain a visa to l egally enter into and stay in Timor -Leste 
(please refer to Measures Affecting Movement of Natural Persons).  
(c) Private Limited Liability Company  
Limited Liability Companies have their capital represented by " quotas, " which are an immaterial form 
of holding equity representing a given percentage of the capital. A foreign natural person or a foreign 
legal person may incorporate a Private Limited Liab ility Company. It may own all (in which case they 
are called Single Quota  holder Private Limited Liability Company), or a portion of the capital in the 
company. Certain laws relating to specific business activities may prescribe a minimum or maximum foreig n (or Timorese) shareholding. For instance, Ar ticle 9.1 (g) of Decree -Law No.  1/2012 of 
1 February  2012 (on Downstream Petroleum Activities) requires that companies wishing to obtain 
a Downstream Activities Licen ce must have at least 5% Timorese shareholding.  
Chapter I I of Law No. 10/20 17, sets out the rules relating to Limited Liability Companies. 
The principal features of a Private Limited Liability Company are the following:  
1. The capital of a private limited company is divided into quotas and the equity holders shall 
be jointly and severally liable for the payment of all quotas pursuant to Article  173. 
2. Quotas shall not be incorporated in negotiable certificates and cannot be called shares.  
3. The articles of association of the company shall specify, in addition to provision of Article  7(4), the capital ratio of each equity holder.  
4. The name of these companies shall be formed, with or without an acronym, by the name or 
business name of all, one or some of the equity holders, or by a specific name, or by  the 
combination of both, but in any case, shall end with the word “Limited” or the abbreviation “Lda.”  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  5. Except as provided for in paragraph 1 above and in the following article, only the company ’s 
assets shall bear the debts of the company to creditors.  
6. The articles of association of the company may stipulate that one or more specific equity 
holders, in addition to being liable to the company pursuant to Article 167(1), shall also be 
liable to corporate creditors up to a certain sum.  
7. A private limited company shall not have more than thirty equity holders.  
8. The capital shall be freely set by the equity holders.  
(d) Joint Stock Company  
A foreign natural person or a foreign legal person could incorporate a Joint Stock Company to carry 
out business in Timor -Leste but there must be at least 3 shareholders and a minimum capital of US$  
50,000.  
Chapter III of Law No. 10/ 2017 sets out the rules relating to Joint Stock Companies . The principal 
features of a Joint Stock Company are the following:  
1. Joint stock c ompanies may only be formed by a minimum of three shareholders, without 
prejudice to the provisions on affiliated companies.  
2. The provisions of paragraph 1 above shall not apply to the companies in which the State holds all or the majority of capital, whic h may be formed by only one or two shareholders.  
3. The equity capital of joint stock companies may not be less than 50,000 US dollars.  
4. The equity capital shall be divided into shares, all of an equal par value of 1 US dollar or multiples one, represented by share certificates.  
5. The liability of the shareholder shall be limited to the value of subscribed shares.  
6. The business name of these companies shall be formed, with or without an acronym, by the 
name orelements, but in any case, shall end with the wording “ sociedade an ónima” or the 
abbreviation “ S.A.”. 
7. The joint stock company may not be formed if the equity capital is not fully subscribed and 
at least 25% is fully paid up.  
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 21 
Measures Affecting Movement of Natural Persons  
The relevant  legislation affecting  the temporary entry or temporary stay of natural persons is:  
• Law No. 11/2017 of 24 May 2017 - Immigration and Asylum Law (hereinafter referred to as 
the Immigration law);  
• Decision No. 232/SEPFOPE -GSE/D/X/2013 of 1 October 2013, issued by the Secretary of State 
for Professional Training and Employment Policy (SEPFOPE) – On granting of the authorization 
needed for foreign employees to work in Timor -Leste and as well granting the relevant visas 
(for work purposes).  
The competency to grant visas correspond to:  
• The granting of a courtesy visa shall be the responsibility of the member of the Government who 
oversees for eign affairs.  
• The granting of work visas, business visas, temporary residence visas and residence visas shall 
be granted by the member of the Government responsible for migration.  
• The issuing of a transit visa, a tourist visa and an airport transit visa shall be grante d to the 
head of the public service responsible for migration.  
• The decision to grant a work visa requires a reasoned opinion from the government body that 
oversees employment.  
• The decision to grant Class II business visas and residence visas for the purp ose of pursuing a 
professional activity also requires a reasoned opinion from the governmental bodies that 
supervise private investment and employment.  
The Immigration Law (Law 11/2017, of 24 May) provides for nine categories of visas:  
• Courtesy visa:  The courtesy visa is granted by the Ministry that oversees foreign affairs to the 
foreigner who travels to the national territory in service visit or of official character. It is valid for 
one year, and allows periods of stay up to thirty days and multiple entries.  
• Transit visa: The Transit visa is intended for a foreigner who intends to enter national territory in 
a trip to another country. It is valid for a maximum period of seventy -two hours, it allows for two 
entries and it cannot be extended.  
• Tourist visa: The tourist visa is intended for the foreigner who travels to national territory for a 
tourism visit. It is valid for thirty days and maybe extended once for an equal period, allowing a 
single entry, unless the foreigner travels to or from Oe -cusse Ambeno, in which case multiple 
entries are allowed. A foreigner holding a tourist visa is not authorized to carry on any 
professional activity in the national territory.  
• Airport stopover visa: The airport stopover visa shall be issued to a foreigner who intends to have 
access to the international zone of the airport and who is travelling on the same or another aircraft in accordance with the transport document and cannot be extended.  
•  Work Visa: The work visa is intended to allow the holder to enter national territory in order to 
pursue a professional activity for hire or reward, in the form of an employment contract or in the provision of services. It is valid for a maximum period of one year, can be extended for equal 
periods and allow multiple entries. A work visa allows the holder to carry out the professional 
activity upon which its grant was based.  
• Business Visa class I and II: The business visa is divided into class I and class II and is granted to the foreigner who intends to develop business activities in the national territory. For the purpose of immigration, “business activity” is the production, distribution and sale of goods or services, regardless of their nature, carried out in the country’s economy, in accordance with the Private Investment Law. WT/ACC/SPEC/TLS/5/Rev.3  
 
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  o The class I business visa is intended for a foreigner who intends to enter national territory for 
the purpose of developing business or investment prospecting activities. It  is valid for a maximum period of sixty days, allows multiple entries and it cannot be extended.  
o The class II business visa is intended for foreigners who intend to establish themselves in national territory in order to pursue business activities by virtue of being a member or administrator of a commercial company registered or to be registered in the RDTL, and who 
holds a relevant position in it, provided that he or she remains or intends to remain in the 
national territory for a period of more than one hundred and eighty - three days per year. It is 
valid for the initial period of six months, may be extended for periods of two years and allows multiple entries. The extension of the Class II business visa depends in particular on the effective registration of the commercial company with the competent entity and on the continuous fulf illment of the legal obligations to which the commercial companies are subject 
in accordance with the applicable legislation and of the holder's stay in the national territory for no less than one hundred and eighty -three days per year.  
• Temporary Stay visa: The temporary stay visa is granted to students who wish to start or continue their studies in the national territory, to foreigners who wish to enter to develop specialized activities, to those who wish to volunteer, and to relatives d ependent on foreigners holding a 
temporary stay visa, a special stay permit, a work visa or a Class II business visa. The temporary stay visa for study is valid for the study period and may be extended for six months, allowing 
multiple entries. A temporary  stay visa to develop specialized cultural, sporting, scientific 
research, journalistic or highly qualified activities as an artist, sportsman, researcher, foreign 
media correspondent, or highly qualified technician, is valid for the contract or mission period up to a maximum of one year, can be extended for equal periods and allows multiple entries. Temporary stay visa to develop short- term volunteer activities has a maximum validity of 120 
days, allowing multiple entries. Temporary stay visas for dependents of foreigners shall be equal to the validity of the family member's family support visa and shall be extended in identical terms, 
allowing multiple entries.  
• Visa to establish residence: The visa to establish residence is intended to enable the holder to  
enter national territory in order to apply for a temporary residence permit for exercise of 
professional activity or family reunion. The visa to establish residence is granted only to a person who demonstrates an intention to stay permanently in the national territory, has the necessary means of subsistence, has provided accommodation and has no criminal record. It is valid for 
ninety days and allows multiple entries. If the foreigner who requests a visa under this article 
intends to pursue a professional activity, the criteria for granting the visa will be taken into account the objective of providing skilled labor for the various sectors of the economy, with a view to increasing productivity and assimilating technology, and the objective of creating jobs for nationals, investing in their training. The number of foreigners to be admitted under the terms of the previous number, as well as the sectors of the economy in which they can not carry on their activity, shall be fixed periodically by a Government res olution.  
The Immigration Law (Law No. 11/2017 of 24 May  2017), also provides for two types of residence 
permit:  
• Temporary Residence Permit: A temporary residence permit is valid for two years, renewable for equal periods and is issued (1) for the exercise of professional activity, (2) to a foreigner 
who has been married for two to five years to a national citizen and intends to reside in Timor -
Leste, (3) for the purpose of family reunification, (4) to victims of trafficking in persons or victims 
of networks to assist in the immigration of persons, and (5) for exceptional reasons. The temporary residence permit may be granted to foreigners who c umulatively:  
o Are in national territory;  
o Show a justified intention of permanent stay in national territory;  
o Present valid travel documents;  
o Provide adequate means of accommodation and subsistence for the required period;  
o Have remained legally in national  territory as holders of a visa to establish residence or are 
covered by one of the waiver lines of the same visa  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  o During the period of stay in national territory, they have not been convicted of a crime in 
punishment or penalties that, alone or cumulative ly, exceed one year in prison.  
• Permanent Residence Permit: It has no limit of validity and it is granted to foreigners who, 
cumulatively:  
o have been legal residents in the national territory for at least ten consecutive years or are minor children or depen dent on national citizens, or have been foreign nationals married to a 
national citizen for more than five years, or have held a temporary residence permit for at least six years; 
o during the period of residence provided for in the preceding paragraph, they  have not been 
condemned for felonies to punishment or punishments that, alone or cumulatively, exceed 
one year in prison;  
o they have maintained adequate means of accommodation and subsistence th roughout their 
period of residence in the national territory a nd provided they are expected to continue to be 
maintained;  
o the purpose of obtaining permanent residence declared in the application is not contradictory 
with the documents presented, or with the declarations given;  
o during their stay in Timor -Leste, they h ave made a positive contribution to the country's 
economy or social welfare.  
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 22 
Relevant sources of laws regarding interests in real estate  
1. Law No. 1/2003 of 10 March 2003, on the Legal Framework on Real Estate Property;  
2. Decree- Law No. 19/2004 of 29 December 2004, on the Legal Framework on the Official 
Allocation and Leasing of Real Estate Property belonging to the Private Domain of the State;  
3. Law 12/2005 of 16 June 2005 on "Legal Regime of Real Estate" (Part II/Leasing between 
individua ls);  
4. Law No. 8/2017 of 26 April 2017 "Expropriation for Public Utility";  
5. Decree- Law No. 14/2022 of 6 April 2022 on "Land Registry";  
6. Decree- Law No. 65/2022 of 31 August 2022 on "A ccess, Execution and M anagement of the 
Information about Property Registration "; 
7. Ministerial Order No. 48/2022 of 9 November 2022 " Official Form for the C ertification of 
Property Rights "; 
8. Ministerial Order No. 49/2022 of 9 November 2022 on "U nique Identification Number of the 
Property "; 
9. Ministerial Order No. 50/2022 of 9 November 2022 on "Official Form for Property Registration 
Certificates "; 
10. Ministerial Order No. 51/2022 of 9 November 2022 on "D ifferent Official Forms for the Property 
Registry "; 
11. Ministry of Justice Order No. 19/GM/MJ/III/2009 of 20 March 2009, on the definition of small, 
medium, and large commerce and industries;  
12. Decree- Law No. 6/2011 of 9 February 2011 –  Rules for Relocation of Unlawful Occupants of 
State Property;  
13. Decree- Law No. 27/2011 of 6 July 2011 on the Settlement of Ownership of Immovable Asset s 
in Undisputed Cases (the " Ita Nia Rai " project);  
14. Law No. 14/2011 of 28 September 2011, Private Investment Law;  
15. Law No. 10/2011 of 14 September 2011, Approves the Civil Code (CC);  
16. Ministry of Justice Ministerial Order No. 16/2011 of 27 July 2011, about th e Cadastral Survey 
and Data Collection Procedures; and, 
17. Ministry of Justice Ministerial Order No. 23/2011 of 23 November 2011, on Conversion of 
Ownership Statements into Ownership Titles in Undisputed Cases ; 
18. Law No. 13/2017 of 5 June 2017 on " Special Regime to Define Real Estate Ownership " (Land 
Law).  
The situation existing under the above laws may change as a result of the approval of the Land Law 
by the National Parliament on 26 April 2017, further enacted by the President of the Republic of 
5 June 2017, aiming to resolve disagreements and uncertainties that have arisen as a consequence 
of the post- colonial, post -occupation, and post -conflict situation of the country. The Land Law 
package consists of the foll owing main Laws: WT/ACC/SPEC/TLS/5/Rev.3  
 
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  I. Law on Special Regime for the Definition of Ownership of Immovable Property 
("Land  Law"), which establishes the criteria for the recognition of property rights; 
establishes criteria and mechanisms for resolution of land disputes; recognize s 
communal land and creates Community Protection Zones.  
II. Expropriation Law, which sets forth the procedures and constraints on expropriation by the State as well as the rules on the definition of the compensation to be paid as a result 
of expropriation proc edures.  
III. Law on the creation of an Immovable Property Fund Law, which creates a financial fund 
for the payment of financial compensation due as a result of the applicability of 
the above -mentioned draft laws.  
- Where the State is the Owner of the Land and t he State Grants the Lease  
The Legal Framework on Real Estate Property, approved by Law No. 1/2003 of 10 March 2003, 
provides that the State owns certain land (Article 4.1). Specifically, the State 's Real Estate property 
is categorized as that belonging either to (i) the Private Domain of the State, or (ii) as belonging to 
the Public Domain of the State, which is defined as those areas set forth in the law which cannot be 
subject to private appropriation unless otherwise expressly foreseen under  any law allowing for its 
lease, concession or temporary use. Law No. 1/2003 also provides for the power of the State to evict 
others from the State 's land (Article 7), but the exercise of the power to evict illegal occupiers does 
not prejudice the rights acquired by b ona fide third parties (Article  9). The law also provides for the 
State to take temporary administrative control of abandoned land (Article 15) and specifically authorizes the State to lease abandoned land to locals or foreigners and to natura l persons or 
corporate bodies (Article 15.3).  
The lease of properties belonging to the State is mainly governed by Decree- Law No. 19/2004 of 
29 December 2004, on the Legal Framework on the Official Allocation and Leasing of Real Estate 
Property belonging t o the Private Domain of the State. This legal framework specifically allows for 
the State to lease State -owned property to nationals or foreigners and to natural persons or 
corporate bodies (Article 9). The law provides that the State has an obligation to ensure the use and enjoyment of the property by the lessee (Article 7.(b)). Article 11 provides for the rental amount to 
be determined according to a general framework that may " establish a special framework for national 
citizens. " 
For leases of " medium or  large-scale commerce or industry belonging to citizens and to national 
and/or foreign companies " (Article 10.1(d)), the Decree- Law sets out a process of publicly calling 
for proposals and for the award of the lease by a Rent Committee (Article 12). The pr ocedure does 
not apply to persons occupying State property at the date Law No. 19/2004 came into force, because in this situation the State may negotiate directly with said persons without being obliged to launch 
a tender procedure (Article 26). Irrespecti ve of the tender requirement, it is fairly common for 
the State to enter into direct negotiations with parties interested in leasing State land.  
Where the State leases abandoned land, the term of the lease may only be of 3 years, renewable 
for equal terms,  unless the land owner subsequently claims possession of the land (Article  22.2 of 
Decree- Law No. 19/2004).  
Pursuant to Article 14.2 of Decree -Law No. 19/2004, a lease agreement is subject to the following 
maximum terms, depending on the type of lessee or use given to the land:  
(a) 5 years  – land used for private accommodation;  
(b) 10 years  – land used for small private commerce and industries;  
(c) 20 years –  land used by Humanitarian Agencies and NGOs; 
(d) 30 years –  land used for medium commerce and industries;  
(e) 50 years  – land used for large commerce and industries, and for agriculture; and,  
(f) 50 years –  land used by International Organizations and Diplomatic Representations  WT/ACC/SPEC/TLS/5/Rev.3  
 
- 162 - 
 
  The definition of small, medium and large commerce and industries is se t forth in Ministry of Justice 
Order No. 19/GM/MJ/III/2009 of 20 March 2009, and is as follows: 
(a) Large commerce and industries: investments in an amount equal to or higher than US$20 million 
or that encompass the lease of State property with a total area equal to or higher than 5  hectares 
(for tourism purposes) or higher than 100 hectares (for any other purpose);  
(b) Medium commerce and industries: investments in an amount higher than US$  1 million; and  
(c) Small commerce and industries: investments in an amount up to US$  1 million.  
The provisions in Decree- Law No. 19/2004 relating to the term of a lease of State- owned land may 
not apply if the lease is to be entered into under the Private Investment Law,  as approved by 
Decree- Law No. 14/2011. Pursuant to the Private Investment Law, certain benefits and exemptions 
may be granted to investors that meet all the criteria required to receive an Investor Certificate 
(the document issued by the authorities that sets forth, inter alia, the duties of the investor, 
the incentives and benefits to be granted by the State, the terms of its cancellation, and the dates 
of commencement, implementation and termination of the investment or reinvestment project). Article 24 of the Private Investment Law provides that the State can enter into a lease agreement 
with the holder of an Investor's Certificate for a maximum time period of 50 years, renewable once 
for an equal period of time.  
Leases Where the Lessor is the Registered Proprietor of Land under the Registration System 
Established under Decree- Law No. 27/2011 of 6 July 2011  
A Ministerial Order of the Ministry of Justice in 2008 approved the commencement of a cadastral 
survey. The survey was carried out as a project of the  United States Agency for International 
Development (USAID) called the Ita Nia Rai project (meaning "our land" in Tetum) from 2008 until 
2012 when USAID handed the project over to the Ministry of Justice. The cadastral survey collected records of land claims in certain local areas, whether by individuals, legal entities, communities, 
groups or the State and published maps showing individual parcels of land and the claimants claiming 
an interest in that land. During that period, claimants who had claimed own ership over a given plot 
of land (and provided that no third parties challenged such claim within a given period of time) were granted a "definitive" land registration title, and the validity of this title can only be challenged before the courts. This dat abase of maps of parcels of land and the relevant claimants were to become 
the basis of the property register created by Law No. 27/2011, and further regulated by Ministerial 
No. 16/2011 of 27 July 2011, on Data Collection Procedures, and Ministerial Order  No. 23/2011 of 
23 November 2011, on Conversion of Ownership Statements into Ownership Titles in Undisputed 
Cases.  
Decree- Law No. 27/2011 established the National Property Cadaster, which is the database that 
contains the information collected through the cadastral survey process (Article 3) and provides that 
the National Property Cadaster is composed of the cadastral database and the property register 
database (Article 3.2). Pursuant to the Ministry of Justice Ministerial Order No. 23/2011, the results of the cadastral survey process were organized into two lists: a list of  parcels of land where 
the ownership was undisputed, and a list of parcels of disputed land. Under Article 8 of Decree- Law 
No. 27/2011, and implementing regulations in Ministerial order 2 3/2011, the claimants of 
the undisputed parcels of land were entered into the register as the registered owner of the parcel 
of land. Even though the process permitted claims by juridical entities, it was only undisputed claims 
by Timorese natural persons that resulted in the claimants becoming registered holders. 
(Article  1.2(a) and (b) of Decree -Law No. 27/2011 and Article 2.1(a) of Ministerial Order 
No. 23/2011).  
Registration creates a presumption that the registered holder is the owner of the registered parcel 
of land (Article 4.2) but it remains possible at any time for others to challenge the recognition of 
ownership that has been registered (Article 8.3). The person challenging the claim would bear 
the burden of proving that the registered holder is n ot the owner of the land.  
Registration of recognition of ownership in the register also affects the duration of the period of uncontested occupation that must pass in order to justify a claim of title through prescription (adverse possession). Generally, t he law in Timor -Leste regarding the acquisition of title in land WT/ACC/SPEC/TLS/5/Rev.3  
 
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  requires a  period of 25 years or, if the possession is in good faith, of 20 years (Article 1216 of the 
CC of Timor -Leste, as approved by Law No. 10/2011). However, where there is "a title of purchase, 
that has been registered, " an acquisition of ownership through pre scription occurs after 15 years, or 
if the possession is in good faith , after only 10 years (Article 1214 of the CC).  
A Registered Holder may transfer their ownership. In line with Article 53.4 of the Constitution, 
Article  10.5 of Decree- Law No. 27/2011 pr ovides that only a transfer of ownership to a person who 
is a national of Timor -Leste can be recorded in the register.  
The law protects the title of a person who purchases land from the Registered Holder for valuable consideration in good faith and who the n registers their ownership. A third party purchasing rights 
with respect to a property for valuable consideration in good faith from the Registered Owner, shall, after the expiration of 3 years after the date of registration of the transfer , have rights t hat cannot 
be affected by any subsequent claim (Articles 10.8 and 10.9). In view of the foregoing, lessees 
should always confirm if the alleged owner has registered his "ownership rights" under the Ita Nia 
Rai project and obtained the above mentioned defin itive land registration title. Should the alleged 
owners have such titles, this would give the lessee confidence in the legal status of the property, given that in principle the Registered Holder has good title and capacity to ensure use and enjoyment of the leased land.  
After a lapse, the Government is continuing with a cadastral survey  program. This ongoing survey 
and registration program will gradually increase the area of land that is subject to the  registration 
system under Decree- Law No. 27/2011.  
- Leases of Other Land and Alternative Legal Arrangements  
Where land has not been subject to the cadastral survey or has been subject to the cadastral survey 
but is disputed, it is more difficult to verify the ownership of land. However, as mentioned above, the Government of Timor -Leste is working to improve the certainty of land tenure in other situations 
through enacting the proposed new laws described above.  
In addition to lease agreements, Articles 1414 et sequitur  of the CC detail the terms and conditions 
for the constitution of surface rights, an alternative legal mechanism to obtain access to land in Timor -Leste. The surface right is a right in rem that consists of the ability to construct or maintain, 
temporarily or perpetually, a building on third party land (or have or maintain a plantation on such 
land). Based on this pro vision, a person may build and maintain, temporarily or perpetually, 
buildings or structures on State -owned property or private property. Contrary to what happens, for 
example, in a concession agreement, the surface rights solution has the advantage of the  holder 
becoming the owner of the building/facility once completed, whilst the State/private owner remains 
owner of the land underneath. The surface rights holder can sell, lease or otherwise encumber its right with an authorization from the grantor. The s urface rights require  the payment of a fee, which 
may be an annual fee or a one -time payment made at the time of constitution of the surface rights. 
Upon expiration of the surface rights, the constructions automatically revert to the owner of the 
land, how ever, unless otherwise agreed between the parties, the surface right holder would have 
the right to compensation. Similar to the lease solution, surface rights may be granted to private 
land or in certain areas of Private Domain of the State.  
 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 23 
Ministries and State Bodies Responsible f or the Regulation  in Specific Services 
Sectors/Sub -Sectors  
Services sector/sub -sector  Responsible Ministry/state body  
Financial services  (including insurance and 
related services)  Ministry of Finance  
Central Bank of Timor -Leste (CBTL)  
Telecommunications and Audiovisual Services  National Communications Authority  
Educational services  Ministry of Higher Education, Science and Culture  
Ministry of Education, Youth and Sport  
Oil & gas and mining  Ministry of Petro leum and Mineral Resources and National 
Authority for Petroleum and Minerals  
Legal services  Ministry of Justice  
Services by health professionals (hospital 
services, medical and dental services, and other 
human health services)  Ministry of Health  
Construction services  Ministry of Public Works  
Transport services (road transport including 
passenger transportation)  Ministry of Transport and Communications   
Air transport services  Timor -Leste Airports and Air Navigation Administration  
Tourism servic es National Authority for Tourism  
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 24 
Regulations on trade in services 
Business Services  
Professional services  
- Legal Services   
 Law No. 11/2008 of 30 June 2008 (as amended by Decree- Law No. 39/2012 of  1 August  2012,  
Law No. 1/2013 of 13 February 2013 and Law No. 4/2015 of  30 December  2015) sets forth that 
the legal profession is reserved for those who, until a Timor -Leste Bar Association is created 
and begins operating, are registered as lawyers with the Centre for Legal Training  (CLT).  
Article 2.3 enumerates the requirements that foreign lawyers must comply with in  order to be 
registered with CLT. These include, (i) having a law degree, (ii) being licen sed to  practice in 
another country; (iii) having knowledge of Timor -Leste 's legal framework, (iv) having w ritten 
and spoken command  of at least one of the official languages of Timor -Leste and , (v) having 
practiced for a minimum of 5 years. Also, in accordance with the most recent amendments to  
the applicable legi slation, foreign lawyers must (i) practice in association with a Timorese lawyer 
and (ii) agree with the latter on the applicable fees.  
 Decree- Law No. 3/2004 of 4 February 2003 sets forth the Legal Framework of Notaries, one of 
the requirements being that  the notary must be a national of Timor -Leste. Decree- Law 
No. 2/2012 of 15 February 2012 provides for the Framework of Registrars and Notaries.  
- Medical , pharmaceutical  and dental services  
Decree- Law No. 14/2004 of 1 September 2004 (as amended by Decree- Law No. 40/2011 of 
21 September 2011) sets forth that all medical staff (i.e. doctors, midwives, nurses, therapists, 
and diagnostic technicians) must be registered with the Ministry of Health , which is responsible 
for assessing the respective qualifications. Foreign doctors may apply for registration with 
the Ministry of Health and are required to obtain a work or residence visa under the general 
provisions of the law and the rules set forth in Decree- Law No. 14/2004, as amended by 
Decree- Law No. 40/2011.  
Decree- Law No. 18/2004 of 1 December 2004 sets forth the requirements for private health 
services, including a licensing procedure that must be followed prior to the opening to the public 
of such health units.  
Decree- Law No. 13/2012 of 7 March  2012 provides  for the rules on the Careers  of Health 
Professionals employed by the State.  
Decree- Law No. 12/2004 of 26 May 2004, on Pharmaceutical Activities, provides for the licensing 
requirements for the importation, storage, wholesale, retail sale, and exportation of medicines for human use.  
Other business services  
- Advertising services   
Decree- Law No. 51/2011 of 21 December 2011 approved the Legal Framework on Advertising 
Activitie s, which sets forth the rules and principles that advertising messages must comply with, 
notably for consumer protection. This statute contains a list of services and products that cannot be advertised (e.g. weapons and munitions) as well as a list of prod ucts where advertising is 
subject to specific rules, such as tobacco, alcoholic drinks, medicines, cars, and immovable 
properties. Notwithstanding the above " content rules, " the provision of advertising services 
(notably the rules and requirements for lice nsing advert ising professionals) is not yet regulated.  
- Services incidental to agr iculture, hunting and forestry   
The United Nations Transitional Administration in East Timor (UNTAET) Regulation No. 2000/17 
of 10 May 2000 prohibits the exploration and exportation of wood. No other regulations on 
the performance of agricultural, hunting, or forestry activities and ancillary services are currently 
in place.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Services incidental to fishing   
Decree- Law No. 6/2004 of 21 April 2004 approved the Legal Framework of Fishing Management 
and Regulation that sets forth the licensing procedure for those wishing to carry out fishing 
activities. Foreign natural persons and legal entities cannot obtain licen ces for artisanal fishing 
or deep- sea fishing, as these are reserved for nationals. Government Decree No. 5/2004 of 
28 July 2004 –  Fishing General Regulation –  further details the licensing procedures as well as 
the rules on the acquisition and transfer of property over fishing vessels.  
- Services incidental to min ing  
Law No. 12/2021 of 30 June 2021 on "Mining Code " aims to regulate comprehensively all mining 
activities, including the reconnaissance, prospecting and exploration, evaluation, development, 
processing, refining and commercialization of minerals in Timor- Leste. The Code regulates the 
performance of mining activities and other forms of exploitation involving the use of industrial 
facilities, as well as the regulation of the sale of Minerals in the domestic and international 
markets. It establishes a moder n legal regime through an integrated framework for the effective 
regulation of the issuance of permits for Mining Activities in the country, including the respective Administrative procedures for the granting of licenses and authorizations to natural and legal 
persons interested in carrying out such operations, defining the Concession Areas, the rights 
and obligations of the parties involved, as well as the rules regarding the inspection and supervision of Mining Activities, the sanctions and penalties appl icable in case of non -compliance 
with the obligations set forth in the Mining Code, and the specific rules for environmental 
protection and payment of the respective fees. It is the objective of the Law to promote and 
facilitate the discovery and developme nt of Mineral Resources in Timor -Leste, taking into account 
the need to encourage ecologically sustainable development and, in particular, to recognize and foster significant economic and social benefits to the country that may result from the efficient 
exploitation of Mineral Resources and ensure adequate revenue for the State stemming from it.  
Communication Services 
Decree- Law No. 15/2012 of 28 May 2012 created the National Communications Authority (NCA), 
the supervisory authority and regulator for this s ector. The NCA manages registration of 
telecommunications  services providers and of entities that operate telecommunications networks, 
and grants radiofrequency spectrum licen ces. 
- Postal services  
Postal Services are governed by Decree- Law No. 17/2004 of 3 November 2004 (Articles 11 and 12). 
Under this statute, Universal Postal Services are subject to an exclusivity regime, while other 
services (such as courier services) are open for competition.  
- Courier services  
Article 12 of Decree- Law No. 1 7/2004 allows courier services to be carried out on a competition 
basis, provided certain thresholds are met. The country is currently served by several courier 
services licen sed to conduct their business under the general business regulations and Decree- Law 
No. 17/2004.  
- Telecommunication services  
Decree- Law No. 15/2012 regulates the provision of telecommunication services in Timor -Leste, 
which are defined as, " Any retail or wholesale service commonly rendered upon payment by the user, 
that consists primarily or wholly of telecommunications. " In tur n, telecommunications are defined  
as the "transmission, reception or emission of signals representing  symbols, writings, images, 
sounds or information of any nature, by means of wires, optical systems, radio electric means, and other electromagnetic system s." 
Whoever wishes to use the radiofrequency spectrum, operate radio equipment,  or provide 
telecommunications or  telecomm unication network services in Timor -Leste, must be granted 
a licence by the NCA. Chapter V of Decree- Law No. 15/2012 (Articles 30 through 33) establishes 
the rules on mandatory registration of telecommunication services providers and providers of 
telecommunications networks. Established in Article 32 are  the NCA 's powers to exempt an operator 
from registration.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Audiovisual services   
Under the Media Law (Law No. 5/2014 of 19 November 2014) radio and television media services 
require a radiofrequency spectrum licen ce granted by the NCA. Article 24 of the same statute 
determines that the "participation of foreign individuals or legal p ersons in the share capital of 
a media corporation may not exceed 30%. " 
Construction and Related Engineering Services  
Decree- Law No. 27/2010 of 22 December 2010 establishes the rules for the certification and 
registration of construction and construction consultancy companies. Decree- Law No. 26/2010 of 
22 December 2010 sets forth the rules for the registration of sole ent repreneurs of the  construction 
sector. Pursuant to Article 6, only national citizens are able to apply for registration as sole entrepreneurs. Decree- Law No.  2/2010 of 18 February 2010 provides for special procedures for 
awardi ng construction works up to U S$250,000 to local companies with registered offices in the sub-
districts.  
Educational Services 
- Primary education services  
Decree- Law No. 7/2010 provides for the Legal Framework for the Administration and Management 
of the Basic Education System, contai ning the rules applicable to public primary education.  
Decree- Law No. 23/2010 of 9 December 2010 approved the Rules on Careers for Child Educators 
and Basic and Secondary Education Teachers employed by the State.  
- Secondary education services  
Decree- Law No. 33/2011 of 3 August 2011 approved the Legal Framework for the Administration 
and Management of the public Secondary Education System.  
- Higher education services  
Decre e-Law No. 8/2009 of 19 May 2009 sets forth the Legal Framework of the Higher Educat ion 
Institutions according to which such institutions may assume the form of a foundation, association, 
cooperative, or limited liability company by quotas or joint stock company. This statute includes a 
set of requirements to be met by each type of instit ution.  
- Environmental services  
Decree- Law No. 5/2011 of 9 September 2011 on " Environmental Licensing " regulates public and 
private  projects capable of giving rise to environmental and social impacts and prescribes that they 
must undergo an environmental l icensing procedure depending on the characteristic and sector of 
the project.  
Financial Services  
All insurance and insurance -related services  
- Relevant laws and regulations 
The relevant laws and regulations relating to insurance and insurance -related services are:  
• Law No. 6/2005 of 6 July 2005, on the Legal Framework on the Licensing, Supervision and  
Regulation of Insurance Companies and Insurance Intermediaries;  
• Banking and Payments Authority (BPA) Instruction No. 1/2007 on the Licensing of General  
Insurance Companies;  
• BPA Instruction No. 2/2007 on the Licensing of Insurance Intermediaries;  
• Governing Board Resolution No. 8/2007 on the Administrative Fees Schedule applicable to  
Insurance Companies and Insurance Intermediaries; and  
• Public Instruction No. 7/2010 on Compulsory Third Party Liability for Motor Vehicle Insurance.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Supervisory a uthority  
The CBTL (created by means of Law No. 5/2011 of 15 July 2011, and which succeeded the Central 
Payments Office "CPO" and the Banking and Payments Authority "BPA") is the  supervisory 
authority for the insurance sector. The CBTL is responsible for, inter alia : 
• Licensing, supervising an d regulating insurance companie s and insurance intermediaries;  
• Ensuring the protection of the legitimate interests of policyholders and insurers;  
• Defining the standards of conduct for insurance companies and insurance intermediaries by 
means of regulations in the form of instructions; and  
Issuing directives in the form of orders.  
- Permitted e ntities 
Insurance activities can only be carried out by: 
• Joint stock companies  incorporated  in Timor -Leste  (no foreign ownership restrictions are 
imposed); and  
• Branches of foreign insurance companies registered in Timor -Leste.  
- Licensing procedure  
The application for a licen ce to establish an insurance company shall be accompanied by 
the following documents and information:  
• The company Founders Agreement;  
• Copy of Articles of Association;  
• Copy of Shareholders Agreement, where applicable;  
• Organic structur e and breakdown of  capital and persons concerned;  
• Identification of the members of the corporate bodies; and  
• Such other documents and information to be defined by CBTL 's instruction deemed necessary to  
perform supervisory functions.  
When granted, a preliminary approval shall expire within one year of the date of granting of such 
approval. The definitive approval of an insurance company is contingent on the fulfillment of 
the following requirements:  
• Incorporation  of the company  in accordance  with the Companies  Law of Timor -Leste  or 
registration of the branch of a company incorporated in a foreign  jurisdiction;  
• Subscription and paying -up of the mandatory minimum share capital;  
• Preparation of the company 's business plan on the basis of a sound analysis g rounded on  
reasonable assumptions;  
• Written commitment to abide by the provisions of Law No. 6/2005;  
• Adequacy  of the qualifications,  experience,  and integrity  of the members  of the board  of directors, 
of the auditing board, and of the company 's key shareholders, as well as the persons who have 
or wish to have relevant interests therein, in view of the business plan and the financial activities 
of the insurance company;  
• Minimum registered capital of US$  500,000;  
• The board of directors must be composed of a minimum of three members, all of which must be 
residents of Timor -Leste;  
• Compliance with all the other conditions with respect to governance requirements referred to in  
Chapter VIII of Law No. 6/2005; and  
• Other requirements as may be determined by the CBTL by way of an instruction aimed at 
guaranteeing compliance with the provisions of Law No. 6/2005.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  The CBTL may refuse to grant a licen ce where it deems that such a licen ce would undermine 
legitimate interests of future policyholders or insurers. A licen ce is valid for an indefinite period of 
time and may not be transferred. Decisions on the licensing of insurance companies are made by the 
CBTL in an independent and impartial manner.  
- Mandatory i nsurances  
Currently, Third Party Motor Vehicle Liability (Public Instruction No. 7/2010) is the only mandatory 
insurance in Timor -Leste.  
- Life, accident and health insurance services 
Life Insurance –  Law No. 6/2005 defines life insurance as insurance for one or more persons 
represented by an insurance policy or policies, where insurance compensation is contingent upon the 
life or death of a certain individual or involves the payment of an annuity. The delivery of savings 
and pension products in connection with the life, death, or disability of an individual is deemed to be 
life insurance.  
As per Law No. 6/2005 the CBTL shall, by means of an instruction, define the insurance categories 
authorized in the areas of life insurance. However, no such instruction has been published to date. 
Furthe rmore, and contrary to regulations on non -life insurance companies, no specific instruction on 
the licensing of Life Insurance Companies has been published. According to this law, the same 
insurance company cannot provide classes of insurance business in g eneral insurance (which includes 
all types of insurance, including health insurance, except life insurance, and all other categories  of 
activities  as may be determined by means of the CBTL's Instruction)  and life insurance 
simultaneously.  
There are no other relevant legal provisions specifically addressing the performance of life insurance 
services.  
- Non-life insurance services  
In Timor -Leste,  non-life insurance  is known  as "General  Insurance " (as opposed to "Life Insurance "). 
Law No. 6/2005 defines general insurance as all types of insurance, including health insurance, 
except for life insurance and all other categories of activities as may be determined by CBTL 's 
instruction. As per Law No. 6/2005 the CBTL shall, by means of an instruction, define t he insurance 
categories authorized in the areas of general insurance. However, no such instruction has been published to date. The specific legal requirements and procedures aimed at licensing General 
Insurance Companies a re laid down in Instruction No.  1/2007.  
Accident Insurance –  Law No. 6/2005 defines accident insurance as insurance against the risk of 
damage arising out of a fortuitous event. There are no other relevant legal provisions specifically 
addressing the performance of accident insurance servi ces. 
Health Insurance –  Law No. 6/2005 defines health insurance as insurance that provides protection 
against financial loss risks arising out of harm caused to a person 's health. There are no other 
relevant legal provisions specifically addressing the per formance of health insurance services.  
Besides the foregoing, there are no other relevant legal provisions specifically addressing 
the performance of general insurance services.  
- Reinsurance and r etrocession  
Law No. 6/2005 defines Reinsurance as the finan cial protection provided by an insurance company 
to another insurance company. There are no provisions in respect of retrocession or other relevant legal provisions specifically addressing  the performance of reinsurance  services.  
Services Auxiliary to Insu rance (Including Broker and Agency Services)  
- Permitted e ntities  
Insurance intermediaries must be licensed by, and registered with, the CBTL. The activity of 
insurance intermediation in Timor -Leste is reserved to:  
• Agents;  
• Sub-agents; and , 
• Brokers.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Agents – As per Article 20 of Law No. 6/2005, the role of an agent is to sell insurance products and 
services adequate for the needs of policyholders and insured, in representation of an insurance 
company, against the payment of a commission, a fixed salar y, or a combination of both, by 
the latter. The relationship between the agent and the insurance company shall be governed by 
a written contract, which shall establish the specific powers of the agent and expressly define 
the acts to be  performed by the agent for whom the insurance company assumes responsibility. As 
per the applicable law, agents are prohibited from acting on behalf of more than one insurance company. As per the combined provisions of Article 11.2 of Law No. 6/2005 and Article 4.1 of Instru ction No. 2/2007, agents may be natural or legal persons with minimum registered capital of 
US$ 5,000.  
Sub-agents – Subagents act on behalf insurance agents and are prohibited from acting on behalf of 
more than one insurance agent. Subagents shall, on a ye arly basis, submit to the CBTL a written 
confirmation of the insurance agent on whose behalf they are authorized to act. Subagents are remunerated in the form of a commission or fixed salary, or both, by the insurance agents they 
represent. As per the combined provisions of Article 11.2 of Law No. 6/2005 and Article 4.1 of 
Instruction No. 2/2007, sub -agents may be natural or legal persons with minimum registered capital 
of US$ 5,000.  
Brokers – In accordance with Article 21 of Law No. 6/2005, insurance brokers are required to obtain 
the most adequate insurance policy for the needs of the policyholders or insured. Brokers are 
remunerated in the form of a commission by the insurance company whose insurance policy they 
have sold. Brokers are obliged to keep an u p-to-date list of the insurance companies on whose behalf 
they are authorized to act, and that list may, at all times, be examined by the CBTL. As per 
Article  11.3 of Law No. 6/2005, insurance brokers shall take on the form of a company with a share 
capital above of US$ 25,000. The existing legislation, notably Law No. 6/2005 and Instruction 
No. 2/2007, only sets forth the licensing and registration requirements of each type of insurance 
intermediaries.  
Banking and Other Financial Services (Excluding Insuran ce) 
With exception of a few statutes, mostly regulations issued by the CBTL, the applicable legal framework is still governed by the legislation and regulatory rules and regulations created by the UNTAET, which held the legislative and executive powers in the territory of Timor -Leste during 
the transition period to the independence from the Republic of Indon esia (25 October 1999 – 
19 May 2002).  
Timor -Leste 's legal framework is based on the universal banking model, under which there is no 
mandatory  segregation b etween banking (such as deposit -taking and lending) and securities 
transactions, i.e. between commercial and investment banking.  
- Regulator  
The banking and financial sector is supervised by the CBTL. As a corollary of the aforesaid supervision  duties,  CBTL is responsible for regulating,  licensing,  and registering banking  and 
financial institutions in the country (including local branches of foreign banking  and financial 
institutions), as well as for monitoring compliance with the applicable legal framework and enforcing 
any fines and penalties in case of any breach thereof. CBTL is empowered to issue regulations and instructions on prudential and supervisory ma tters.  
- Permission to operate  
One of the main principles of the regulatory framework is that only financial institutions duly licen ced 
by, and registered with, the CBTL are allowed to engage directly in any financial activ ity in 
Timor -Leste. In order to b e granted the required licen ce, banking and  financial institutions must be  
organized under the laws of Timor -Leste, i.e. , through a locally incorporated company or a branch 
of a foreign financial institution registered in the country.  
In Timor -Leste, there are three classifications of banking licen ces that the law designates : A, B, and 
C. Such classifications of licen ces are directly related to the scope of activities that the holder of 
the given licen ce is allowed to perform in Timor -Leste, as per Section 24 of the Regulation.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Capital requirements  
As per Section  4.1 of the Regulation,  the CBTL is responsible for establishing  the minimum regulatory 
capital for licen sed banks, which shall not be less than the equivalent of US$ 2,000,000. T he CBTL 
may increase the minimum capital requirements from time to time by instruction.  
In accordance with Instruction CPO/B -2000/1, on Applications for Bank Licen ces, the minimum 
regulatory capital depends on the classification of the banking licen ce. Currently, the minimum 
amount required for level A is US$  6,000,000, for level B US$  4,000,000 and for level C 
US$ 2,000,000.  As per Instruction CPO/B -2000/2 on Regulatory Capital, the minimum capital 
adequacy ratio of banks organized in Timor -Leste is 12 percent, irrespective of the type of licen ce. 
- Key issues  
Regulation on bank licensing and supervision  
UNTAET Regulation No. 2000/8 on Bank Licensing and Supervision (the " Regulation ") is the main 
statute of the banking and financial sector of Timor -Leste. The Regulation sets forth the main rules 
and principles (which, in certain cases, are further developed by specific instructions  issued by 
the regulator) of the whole banking and financial system. The Regulation deals with a variety of 
aspects relevan t for banking institutions, including, amongst others (i) application, issuance, and 
cancelation of banking licen ces; (ii) corporate governance; (iii) professional secrecy; (iv) permitted 
financial activities; (v) recordkeeping rules; (vi) auditing; (vii) reports and inspection; 
(viii) infractions, penalties, and remedial measures; and , (ix) insolvency. The Regulation also 
provides for provisions applicable to shareholders, directors, agents and employees of 
banking  institutions.  
CBTL's instruction on the credit registry information system  
In 2009, the CBTL created the Credit Registry Information System (as per Instruction No. 3/2009) 
in Timor -Leste to provide banking and financial institutions operating in the country with information 
relating to existing and prospective borrowers' credit at other banking and financial institu tions. This 
system has been seen by the local market players as a vital instrument for risk assessment purposes. 
The participating entities are required to submit detailed data to the Credit Registry Information 
System related to each credit granted, such as (i) the borrower's details; (ii)  amount of credit 
granted; and , (iii) type of collateral (if any).  
Regulator's instructions, rules and guidelines 
Although many aspects relevant for the performance of banking and financial activities are still 
unregulate d in Timor -Leste (especially when compared to more developed jurisdictions), there are 
several regulations that have already been approved by the regulator through the issuance of instructions, rules, and guidelines.  
The main instructions approved so far cover a range of issues typically addressed by financial 
regulators of other countries, including, (i) capital and liquidity requirements, (ii) qualifications of 
directors, (iii) credit exposures, (iv) transactions with related person, banks, and affiliates , (v) loans 
to employees; (vi) reporting and public disclosure duties; (vii); auditing; (viii) equity investment; 
(ix) asset classification; (x) internal control system; (xi) investment in real estate; and , 
(xii) recordkeeping.  
In February 2013, the CBTL i ssued Guidelines for the Licensing and Operations of Money Transfer 
Operators to encourage the sound and efficient growth of remittance services in the economy and to reduce the risk of Money Transfer Operators (MTOs) in Timor -Leste becoming vehicles for/o r 
victims of financial crime and suffering the consequential damages. Furthermore, in February 2015, the CBTL issued Guidelines on the Use of Agents in Branchless Banking. These Guidelines apply to 
(i) all Banks l icensed under the Regulation  (ii) Other Dep osit Taking Institutions (ODTIs); and , 
(iii) individuals and other entities providing Agent Banking services.  
Product specific legislation  
With the exception of a few specific rules applicable to credit lending and the opening and 
maintenance of bank accou nts/deposits, there is no banking/financial product- specific legislation yet 
in Timor -Leste. This means that, as a rule, products offered by banking and financial institutions are 
only bound by the rules on contracts provided for in the general law, notabl y the CC of Timor -Leste.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Enforcement and i nvestigation  
The Regulation  empowers  the CBTL to take actions  and impose  penalties  (as described in the 
applicable law) against a financial institution, its directors, and principal shareholders in breach of 
(i) a regulatory provision; (ii) restriction or provision of an authorization issued by CBTL; and , 
(iii) any provision of an enforcement agreement entered into between the financial institution in 
question and the CBTL.  
Whenever a financial institution (or any of its directors or main shareholders) is deemed to have 
breached any of the regulatory rules, the CBTL may, inter alia , (i) issue written warnings; (ii) execute 
an enforcement agreement with the board of directors providing for a program of remedial actio n(s); 
(iii) issue written orders to cease infractions and to u ndertake remedial actions; (iv)  impose fines; 
(v) suspend temporarily or dismiss directors; and , (vi) revoke the banking  licence. 
Complaints and r edress  
There are no specific rules on complaints and redress in Timor -Leste. In practical terms, however, 
consumers may address their complaints against banking institutions to the CBTL, which then 
notifies the bank to provide information and share its views on the case. Upon completion of the investigation procedures, the CBTL may simply close the file (if it finds that the financial institution 
complied with the  applicable law and, therefore, the consumer had no legal grounds for complaint) 
or, if the complaint is upheld by the CBTL, issue a written order to the financial institution to undertake remedial action(s), which may include redress or compensation.  
- Creditor h ierarchy  
Insolvency  
Pursuant to the Regulation, upon liquidation of a bank's assets, the secur ed claims shall be paid to 
the extent of the realization of the security or, alternatively, the security shall be delivered to the secured creditor.  
The proceeds of other claims shall be paid in priority to all other debts, in the following order:  
(a) Necessar y and reasonable  expenses  incurred  by the receiver  and the CBTL,  including 
professional fees;  
(b) Deposits up to an amount not exceeding 10 tim es the average monthly wage 
per depositor;  
(c) The amount not paid to deposits under (b) above;  
(d) Other claims of creditors against the bank.  
If the amount available for payment for any class of claims listed above is insufficient to provide 
payment in full, such claims shall be paid in equal proportions. After payment of all claims filed, any 
remaining accepted claim s that were not filed within the time specified by instruction of the CBTL 
for the filing shall be paid. Any proceeds remaining after all claims of depositors and other creditors 
have been paid shall be distributed among the shareholders of the bank in acc ordance with their 
rights and interests.  
Banking r esolution  
If the CBTL determines that a bank is insolvent or must reasonably be expected to become insolvent 
within the next 90 days, the CBTL must take possession and control of that bank through a receive r. 
Under the law, the receiver may, inter alia , (a) continu e any operations other than (i)  deposit taking 
and (ii) credit lending to new customers; (b) discontinue  any operations; (c) borrow money on an 
unsecured basis and; if not possible, on the security  of assets of the bank; (d) cease or limit 
the payment of any obligation; (e) employ or dismiss any director, employee or professional advisor; 
(f) execute any instrument in the name of the bank, and , (g) initiate or defend and conduct in its 
name in any a ction or legal proceeding.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Bank secrecy  
Pursuant to the Regulation , the former and present directors, employees, and agents of banking and 
financial institutions shall keep secret all issues regarding the financial institution's activity and 
clients. The  information subject to bank secrecy includes, but is not limited to, customers' account 
balances, amounts, conditions, and use of proceeds of banks loans, customers' business 
relationships, and recipients and amounts of payments made by the bank. The secr et information 
may only be disclosed to (i) the CBTL (including its inspectors and the auditors appointed by it), (ii) external auditors of the banking institution, ( iii) judicial authorities,  and, (iv) foreign bank 
supervisory authorities, and , (v) when the disclosure is required for protecting the bank's interest 
in legal proceedings.  
- Financial promotion  
The laws and regulations  of Timor -Leste  do not regulate financial  marketing  and promotional 
activities or provide for a definition thereof.  
- Market a buse  
The Regulation sets forth the principle pursuant to which banks shall refrain from entering into transactions or engaging in practices of any kind that would provide them, alone or together with others, a position of dominance on the money, capital, or foreign exchange markets. In accordance 
with said Regulation, banks shall also refrain from engaging in manipulative devises or practices that could result in an unfair advantage for themselves or for third parties. In addition, banks shall 
not require any person to contract to receive any financial service or products from an affiliate as 
a condition of being permitted to contract with the bank itself.  
- Corporate g overnance  
Pursuant to the Regulation, banks shall be managed by a governing boar d and shall have an audit 
committee. Banks are required to have a risk management committee or separate credit and asset 
and liability management committees. The governing board of a bank shall have an uneven number 
of members with a minimum of three and a  maximum of seven.  
- Remuneration and bonuses  
Pursuant to Instruction CPO/B -2001/9 on Remuneration of Members of the Governing Board and of 
Senior Management of Newly Licen ced Banks, the remuneration of the governing board and senior 
management of a newly incorporated banking institution is subject to prior approval of the CBTL for 
the first three years of the bank's operations.  In general terms, the CBTL shall not approve the 
proposed remuneration of the members of the governing board and the senior management if it 
includes, inter alia , (i) the ability to acquire a different class of shares of the bank with greater voting 
rights in comparison with the voting rights attached to other classes of shares; (ii) the ability to 
acquire shares of the bank at  an original issue price lower than the price paid by other investors; 
or, (iii) the proposed remuneration raises any other supervisory concerns.  
Also, the proposed remuneration shall not be approved by the CBTL if it (i) is expected to adversely affect th e bank's future earnings prospects or financial condition; or , (ii) is not in line with 
the person's experience and competence. In the specific case of the members of the governing 
board, the CBTL shall also not approve the proposed remuneration i f it: (i) is not based on meetings 
attended; (ii) exceeds the salary of the senior management of the bank; or , (iii) includes bonuses.  
Regarding senior management, the remuneration (i) shall be in line with remuneration paid to 
individuals in similar positions with  similar qualifications at banks engaging in similar financial 
activities; and (ii) shall not include incentive compensations which are not linked to the bank's long-term business strategy and the  overall financial condition of the bank. Remuneration linke d to 
volume, short- term performance or profitability, or excessive risk -taking, shall not be approved by 
the CBTL.  
- Acceptance of deposits and other repayable funds from the public  
In accordance with the applicable Regulation and auxiliary legislation, currently there are two types of institutions entitled to accept deposits and other repayable funds from the public, as follows:  
• Banks; and , 
• Other deposit -taking Institutions (ODTIs) as licen sed in accordance with Instruction No.  6/2010.  
The opening and maintenance of bank accounts/deposits are no t yet highly regulated in Timor -Leste. WT/ACC/SPEC/TLS/5/Rev.3  
 
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  The relevant agreements are mainly subject to the few rules provided for in:  
• Instruction No. 03/2003, on the Opening and Maintenance of Deposit Accounts – which refers to 
the mandatory documents and information to be provided under a Bank Account Agreement; and  
• Instruction No. CPO/B -2001/3, on the Notification of Terms and Conditions of Deposits and  
Credits – which addresses the mandatory information Banks must provide to its customers in 
respect of the terms and conditions applicable to services rendered under a bank deposit  
agreement.  
The CBTL had updated the regulatory framework on t he opening and maintenance of bank accounts 
aimed at reinforcing customers ' rights. Th is framework enter ed into force on 1 January 2016.  
- Lending of all types,  including,  inter alia,  consumer  credit,  mortgage  credit, factoring, 
and financing of commercial transactions  
There is no legislation that specifically addresses different types of lending, therefore,  the comments 
below  apply  to any type of lending,  i.e., regardless  of whether  the underlying transaction is consumer 
credit, mortgage credit, factoring, or financing of commercial transaction.  
- Loan agreement format  
There is no standard loan agreement format in Timor -Leste. The CC of Timor -Leste, as approved by 
Law No. 10/2011 of 14 September 2011, sets forth the general principle of " contractual freedom, " 
according to which parties may, subject to any applicable stat utory limits, freely establish 
the contents of contracts, and also enter into contracts different from the types expressly provided 
for in law (Article 340 of the CC). Thus, the main principle is that the terms and conditions of a loan 
agreement can be freely agreed by the parties provided, however, the purpose of the financing must not be contrary to public order or ethical principles (Article 271 of the CC).  
- Mandatory clauses 
Under Instruction on Credit Documentation (Instruction No. CPO CPO/B -2001/8), credit agreements 
shall contain, at least, the following elements: (i) the date and principal amount of the credit; (ii) the purpose of the credit; (iii) the interest rate; (iv) repayment schedule, including the maturity 
date; (v) other terms and condition s of the credit; (vi) description of any collateral and the legal 
right to the collateral in the event of the borrower 's default; (vii) any insurance required to be 
contracted by the borrower; and , (viii) date(s) on which the credit amounts will be made av ailable 
to the borrower.  
- Form of loan agreements  
As per Decree- Law No. 45/2012 of 21 November 2012, on the Form of Loan Agreements, loan 
agreements entered into by banking institutions organized in Timor -Leste may be executed by 
a private written documen t. 
- Governing l aw 
The CC contains a number of rules on choice of law and conflict of law issues that must be taken into account when reviewing a loan. Article 40 of the CC determines that the parties may freely choose the law governing their agreements pr ovided that such choice of law corresponds to a serious 
interest of the parties or has a connection with an element of the contract that is relevant for 
purposes of international private law ( e.g., law of the residence, head offices, or place of business 
of one of the parties; law of the place where the contract will be performed; law of the place where 
the contract will be executed; law of the location of any immovable property).  
Based on the foregoing, and as a matter of principle, loan agreements to be e ntered into between 
banks and its customers in Timor -Leste should be governed by Timor -Leste 's law, unless the nature 
of the elements of the specific transaction justifies the choice of a foreign law. Under Timor -Leste 's 
law, local courts will not accept a foreign law chosen by the parties if it involves a breach of a fundamental principle of public order, or mandatory provisions of the applicable local laws. Articles 
20 and 21 of the CC state that (i) the choice of law is deemed irrelevant if such choice arises from 
a fraudulent intention to avoid the application of the law, which, in other circumstances would apply; 
and (ii) provisions of foreign law are not applicable if they breach the fundamental principles of 
public order of Timor -Leste. Howeve r, there is no statutory definition of domestic or international 
public  order. This means that the contents of such a concept will be determined by the judge on 
a case-by- case basis. Some examples of public policy principles and mandatory rules include fo rmal WT/ACC/SPEC/TLS/5/Rev.3  
 
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  loan agreement requirements, rules on collateral, interest- related rules, and minimum requirements 
of loan agreements.  
- Interest r ate 
The CC sets forth limits for charging interest on a loan. Pursuant to Article 1066 of the CC, an agreed 
interest rat e cannot exceed the statutory interest rate plus 3% if the loan is secured in rem, or 5% 
if the loan is unsecured in rem. The default interest rate cannot exceed the statutory interest rate 
plus 7% if the agreement is secured in rem, or 9% if the agreement  is unsecured in rem. Any interest 
rate in excess of the above limits is deemed usurious and null and void. In effect, the provision of 
Article  1066 of the CC is not applicable, as the government has not yet approved a statutory interest 
rate. Notwithstand ing, the agreed interest rate should not breach the principle of good faith by 
creating an  excessive and unjustified advantage to the lender, considering the specific circumstances 
of the market and the loan (Articles 273 to 275 of the CC).  
- Financial leasing 
In accordance with Section 24.3 (d) of the Regulation, Class A and B Banks are entitled to provide 
financial leasing services. There are no other relevant legal provisions specifically addressing 
the performance of financial leasing services.  
- All payment and money transmission services 
In accordance with Decree -Law No. 17/2015 of 24 June 2015, on the National Payments System, 
"Payment Services" include: 
• Services providing for the deposit and withdrawal of cash;  
• Execution of payments;  
• Issuance or purcha se of payment instruments;  
• Provision of funds transfer services, and  
• Any other money transfer ancillary services that also involve the issuing of electronic money and 
electronic money instruments (but excluding the provision of internet or communications  services 
or network access).  
In accordance with Article 7 of Decree -Law No. 17/2015, no individual or corporate body may provide 
payment services or operate one of the Systems (which include Payment, Clearing, or Settlement System) without being duly authorized by the CBTL.  
As per Section 24.2 of the Regulation, a banking licen ce entails:  
• Payment and collection services; and  
• Issuance and management of means of payment (including payment cards, travelers' checks and 
bankers' drafts).  
- Guara ntees and c ommitments  
There  are no other  relevant  legal provisions  specifically  addressing  the provision  of bank 
guarantees or similar commitments.  
- Trading for own account or for account of customers 
Trading for own account or for account of customers, whether on an exchange, in an over-the-
counter market, or otherwise, the following:  
a. Money market instruments (checks, bills, certificate of deposits, etc.)  81339**  
b. Foreign exchange  81333  
c. Derivati ve products including, but not limited to, futures and options  81339**  
d. Exchange  rate and interest rate instruments, including products such as 
swaps and forward rate agreements  81339**  
e. Transferable securities  81321*  
f. Other negotiable instruments and financial assets, including bullion  81339**  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  In accordance with Section 24 of the Regulation, banks are entitled to:  
• Buy and sell foreign exchange for cash for the account of a customer;  
• Borrow funds and buy and sell for a bank's own account or for the account of customers (excluding  
underwriting)  of: (i) money  market  instruments  (including,  checks,  bills of exchange and 
certificates of deposit); (ii) debt securities; (iii) futures and options relating to debt securities or 
interest rates; or (iv) interest rate instruments (only Class  A and B Banks).  
There are no other relevant  legal provisions specifically addressing the services related with trading 
for own account or for account of customers.  
- Participation issues of all kinds of securities, including underwriting and placement as 
agent (whether publicly or privately) and provision of service related to such issues 
As per Section 24.4 of the Regulation, only Class A Banks are entitled to provide services in 
connection with underwriting and distribution of debt and equity securities and dealing with equity 
securities. There are no other relevant legal provisions specifically addressing the services related 
with trading for one 's own account or for the account of customers.  
Instruction CPO/B -2001/2 on Equi ty Investments of Banks sets forth that no bank shall hold (directly 
or indirectly) an equity interest in an entity engaged in activities other than financial activities that: 
(i) represents a significant interest; or (ii) exceeds its net current value, th e equivalent of 15% of 
the regulatory capital of the bank; or (iii) when the aggregate net current value of all of its equity interests in such entity exceeds the equivalent of 100% of the regulatory capital of the bank, without 
obtaining prior written aut horization from CBTL. Furthermore, banks are not allowed to hold (directly 
or indirectly) equity securities of a bank organized in Timor -Leste.  
Finally, the above mentioned limitations and restrictions do not apply to (i) equity interests that 
have been acquired by a bank in lieu of repayment of credit granted by such bank (which can cannot 
exceed one year from the date they are acquired or within such longer time period as the CBTL may 
approve in response to a written request by the bank) and (ii) equity interests held by the bank as 
an agent in securities undertaking or brokerage or investment portfolio management.  
- Money b roking  
In accordance with Section 24.3 (c) of the Regulation, Class A and B Banks are entitled to provide 
money broking services.  There are no other relevant legal provisions specifically addressing 
the performance of money broking services.  
- Asset management such as cash or portfolio management, all forms of collective 
investment management, pension fund management, custodial de pository and trust 
services  
In accordance with Section 24.4 (a) and (b) of the Regulation, only Class A Banks are entitled to provide (i) trust services, including the investment and administration of funds received in trust and 
administration of securitie s; and (b) provide services as an investment portfolio manager or 
investment adviser.  There are no other relevant legal provisions specifically addressing 
the performance of such services.  
- Settlement and clearing services for financial assets, including securities, derivative 
products, and other negotiable instruments  
According to Law  No. 5/2011,  the CBTL is responsible  for the licensing,  registration,  and supervision 
of clearing, payment and securities settlement systems. The same rule flows from Decree- Law 
No. 17/2015 of 24 June 2015, on the National Payments System, pursuant to which banks are 
required to obtain authorization from the CBTL to operate Payment, Clearing, and Settlement 
Systems.  
As per Article 9.1 of Decree- Law No. 17/2015, all syst em operators shall lay down written rules 
covering the administration, management, and operation of the systems they operate. Such rules shall cover, at least, (i) liquidity management, (ii) credit risk and settlement, (iii) when a  payment 
instruction and settlement are final, (iv) governance and access, (v) emergencies and operational 
risk, (vi) rights and duties of system participants and operators. However, no legal provisions have yet been approved specifically addressing the performance of services suc h as settlement and 
clearing services for financial assets, including securities, derivative products, and other negotiable 
instruments.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  - Advisory and other auxiliary financial services on all the activities listed in article 1b of 
MTN/TNC/W/50, including credit reference and analysis, investment and portfolio 
research and advice, advice on acquisitions and corporate restructuring and strategy  
As per Section 24.3 of the Regulation, Class A and B Banks are entitled to provide services as 
a financial agent o r consultant, except with respect to investment advisory services, which can only 
be performed by Class A Banks. There are no other relevant legal provisions specifically addressing 
the performance of advisory and other auxiliary financial services.  
Health  Related a nd Social Services  
- Hospital services  
Decree- Law No. 18/2004 of 1 December 2004, on Private Health Services establishes the rules 
on the licensing of private hospitals. This statute does not contain any requirements as to 
nationality of the inve stors or responsible persons. Notwithstanding, the rules on 
licensing/accreditation of health professionals must also be followed.  
- Other Human Health Services (other than 93191)   
Decree- Law No. 18/2004 of 1 December 2004, on Private Health Services establishes the rules 
on the licensing of private health services, including clinics, dental clinics, etc. This statute does 
not contain any requirements as to nationality of the investors or responsible persons. 
Notwithstanding, the rules on licensing/accreditation of health professionals must also be 
followed.  
Tourism and Travel Related Services  
Timor -Leste has not passed any laws specifically regulating tourism and travel -related services. 
Notwithstanding , Decree- Law No. 24/2014 of 3 September 2014 sets forth the general 
framework for a tourism policy in Timor -Leste, which includes the general pr inciples to be applied 
to the sector.  
- Hotels and restaurants (including catering)  
Regarding restaurants, Decree- Law No. 7/2009 of 15 January 2009, regulates the licensing 
procedure and the activity of restaurants and similar establishments serving food and  beverages , 
such as bars, nightclubs and traditional food and beverages establishments. The statute also 
establishes the specific requirements in order to obtain a licen ce. Prior to the attribution of 
a licence, the establishment is subject to inspection . 
- Recreational, Cultural and Sporting Services  
Decree- Law No. 10/2011 of 16 March 2011 sets forth the Legal Framework of Public Utility of 
Sports Federations . Decree- Law No. 18/2014 of 24 July 2014 regulates Sport Clubs and 
Companies. Decree- Law No. 6/20 09 provides for the Regulation of Recreational and Social 
Gambling  and includes the applicable licensing requirements.  
Transport services  
- Maritime transport services  
Timor -Leste has not passed any specific laws regulating maritime transport services. However, 
the Ministry of Public Works, Transports and Communications is drafting regulations  for these 
services with the assistance of the German Institute  for International Cooperation,  GIZ. 
- Air transport services  
This sector is under the sup ervision of Timor -Leste Airports and Air Navigation Administration 
(TLAANA). Timor -Leste has enacted Decree -Law No. 1/2003, of 10 March 2003, which sets forth 
the general legal framework applicable to air transport services. Decree -Law No. 5/2006 of 
1 March 2006, establishes the conditions, requirements, and legal procedure for the attribution of 
certification for commercial air transport companies to carry out their activities. This certificate  is 
granted by TLAANA.  
- Road transport services  
Decree- Law No . 2/2003 of 10 March 2003 sets forth the general legal fr amework applicable to 
the road transport system, defining its main  purposes and general pri nciples. The statute  also 
establishes some rules on private and public transport to be further regulated (no te that no other 
laws or regulations have been enacted in respect to this sector).  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  Pursuant to Article 15 of Decree- Law No. 2/2003, access to the profession of public road transporter 
is only available to (i) Timor -Leste nationals; (ii) companies in which Timorese nationals hold at 
least a 50% participating interest; or (iii) foreigners enjoying the same rights and treatment as 
Timor -Leste nationals. This provision also indicates that an interested person fulfilling one of 
the abovementioned conditions has to be registered with the Road Transporters National Registry, 
which is yet to be established.  
- Passenger transportation  
Article 16 of Decree- Law No. 2/2003 provides that regular urban and local transportation is a  public 
service and may be carried out through the granting of a licen ce or concession by the  Ministry of 
Public Works, Transport and Communications.  Inter-urban passenger transportation may be carried 
out privately, in which case the risk and cost thereof shall be fully borne by the transport companies. 
An authorization from the Ministry of Public Works, Transport and Communications for each route 
operated is also required, as per Article 17 of Decree -Law No. 2/2003.  
- Freight transportation  
Article 20 of Decree- Law No. 2/2003 determines that the legal framework to be regulated shall 
provide for competition and transport safety.  
- Pipeline transport  
Decree- Law No. 20/2008 of 19 June 2008, which created the National Petroleum Authority (NPA), 
and Decree- Law No. 1/2012 of 1 Febru ary 2012, on the downstream sector, establish that pipeline 
transportation of fuels and other petroleum products is subject to licensing by the NPA. Decree- Law 
No. 1/2012 further foresees the approval of more detailed regulations on pipeline transport of 
petroleum products; however, the NPA has yet to approve any such regulations.  
- Transportation of fuel s 
Decree- Law No. 20/2008 of 19 June 2008, which created the NPA and Decree -Law No. 1/2012, of 
1 February 2012, on the downstream sector, establish that tra nsportation of fuels is subject to 
licensing by the NPA. Decree- Law No. 1/2012 further foresees the approval of more detailed 
regulations on the transport of petroleum products; however, to date the NPA has yet to approve 
any such transport regulations.  
There are no regulations with respect to services sectors/sub -sectors not mentioned in this Annex.   
 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 25 
Bilateral Agreement s 
AGREEMENT  DATE OF RATIFICATION  
United States  – Cooperation agreement  Parliament Resolution No. 2, 3 January 2003 
Australia – Timor Sea Treaty  Parliament Resolution No. 2, 1 April  2003 
Brazil – Cooperation agreement  Parliament Resolution No. 9 , 11 November  2004 
Portugal – Agreement on avoid ance of  double taxation 
and fight against fiscal evasion  Government Resolution No. 2, 28 January 2004  
 
China – trade agreement  Government Resolution No. 18, 24 July 2014  
United States - Agreement on economic and technical 
cooperation  Parliament Resolution No. 19 , 24 December 2004  
Australia – Treaty on Certain Maritime Arrangements  Parliament Resolution No. 4 , 8 March  2007 
Australia – Unitization Agreement  Parliament Resolution No. 5, 8 March  2007 
Australia – Timor Sea  Parliament Resolution N o. 5, 8 March  2007 
Germany – Cooperation agreement  Parliament Resolution No. 5 , 7 May  2008 
Indonesia - Traditional border crossing and regulated 
markets  Parliament Resolution No. 21, 2 May  2009 
Angola – Agreement on economic, commercial, 
technical, scientific and cultural cooperation  Government Resolution No. 12 , 5 August  2009 
Spain – Cooperation agreement  Parlia ment Resolution No. 19, 14 July 2010 
Japan – Cooperation agreement on training and 
formation  Parliament Resolution No. 5 , 26 Ma rch 2014 
Indonesia – Visa exemption for diplomatic passports  Parliament Resolution No. 6, 18 June  2014 
Portugal – Agreement  to create the Portuguese Scho ol  Parliament Resolution No. 9, 5 August  2015 
European Union – Agreement on visa exemption for all 
passports  Parliament Resolution No. 10, 5 August 2015 
Holy Se e – Agreement  Parliament Resolution No. 18 , 11 November  2015 
New Zealand - Status of Forces Agreement (SOFA ) Parliament Resolution No. 4, 8 March 2017  
Cambodia – MoU on economic, commercial and 
technical cooperation  Parliament Resolution No. 17, 23 August 2017  
Australia – Agreement on Maritime Boundaries 
Delimitation  Parliament Resolution No. 15, 27 August 2019  
 
Australia - Air Services Agreement ( ASA) Parliament Re solution No. 6, 16 February 2021  
Thailand – Agreement on  visa exemption on 
diplomatic and service passports  Parliament Resolution No. 21, 13 July 2022  
 
Cambodia – Agreement on  visa exemption on 
diplomatic and service passports  Parliament Resolution No. 22, 13 July 2022  
 
United Arab Emirates - Air Services Agreement (ASA) Parliament Resolution No. 23, 13 July 2022  
United States – Agreement on Millen nium Challenge  Parliament Resolution No. 42, 19 October 2022  
Bilateral Investment Treaties  
COUNTRY  TREATY  
Portugal  Agreement Concerning the Encouragement and Reciprocal Protection of Investments, approved 
by Government Resolution No. 2/ 2004 of  28 January  2004, entered into force on 7 April 2004  
Qatar  Agreement between the Government of the Democratic Republic of Timor -Leste and the 
Government of the State of Qatar for Reciprocal Promotion and Protection of Investments, 
signed on 21 January 2012. 
Kuwait  Agreement Between the Government of the Democratic Republic of Timor -Leste and the 
Government of State of Kuwait for the Promotion and Reciprocal Protection of Investments, 
signed on 1  June 2007 
Kuwait  Trade Co -operation Agreement between the Government of the Democratic Republic of Timor -
Leste and the Government of the State of Kuwait, signed on 1  June 2007 
Germany  Treaty between the Federal Republic of Germany and the Democratic Republic of Timo r-Leste 
Concerning the Encouragement and Reciprocal Protection of Investments, Gover nment 
Resolution No. 8/ 2011 of  16 March  2011, signed on 21 January 2012 (not ratified)  
Vietnam  Trade Agreement between the Government of the Democratic Republic of Timor -Leste and the 
Government of the Socialist Republic of Vietnam, signed on 4  September 2013 
 
 
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 26 
State of Play in Timor -Leste's ASEAN Accession  
Internal consolidation  
• Progressive legislative reforms intended to align with ASEAN requirements have been enacted 
since 2015. The VIII C onstitutional Government' s work program (2018- 2023) – debated and 
approved by the National Parliament – states the intention to (page 131) 'reinforce relations 
with ASEAN member states and continue to promote national reforms that align with ASEAN 
policies and rules'.  
• Government Resolution No. 14/2019 states that legislative reforms overseen by the Ministry of Legal Reform and Parliamentary Affairs must facilitate ASEAN accession by considering alignment with ASEAN requirements.  
• The Timor -Leste ASE AN Mobilisation Program (TLAMP) and the Critical Elements for Accession 
(CEA) were launched in 2019. TLAMP is an ongoing process with long -term objectives towards 
meeting ASEAN requirements, while the CEA consists of key ASEAN agreements which can be 
imple mented within a reasonable timeframe (short - and medium -term objective).  
• The establishment of an inter -ministerial working group for the three ASEAN community 
pillars, and the ASEAN Economic Core Team. Several in -country and overseas training s have 
been provided and will continue to be provided to the member s of the working groups.  
Bilateral Engagement  
• "Diplomacy Tours " were carried out by the Minister of Foreign Affairs to ASEAN Members 
States (AMS) in 2019 , continu ing until now through virtua l meetings and includ ing regular 
meetings with AMS resident ambassadors/representatives in Dili.   
• Appointment of Timor -Leste Permanent Representative to the ASEAN Secretariat in Jakarta to 
facilitate bilateral engagement with AMS both at the political and technical level.   
ASEAN Fact-Finding Mission (FFM):  
• In September 2019, ASEAN sent a Fact -Finding Mission to Dili on the Political- Security 
community pillar to assess Timor -Leste's commitment, capacity, and technical readiness to 
implement ASEAN agreements as well as participate in ASEAN meetings and other relevant activities.  
• Due to the COVID -19 pandemic, ASEAN Senior Officials held virtual meetings with relevant 
line-ministries and agencies on the Socio- Cultural pillar in October 2020. Likewise, a virtual 
meeting on the Economic pillar took place between 7 -9 December 2020 which assessed in -
depth the implication of Timor -Leste's accession to ASEAN' s economic agreements, national 
strategic plans, and policy implementation.  
• The ASEAN Socio -Cultural and Economic Community Pillar have concluded the FFM on Timor -
Leste accession from 5 to 9 July and 18 to 21 July 2022, respectively.  
• The ASEAN FFM on Political- Security Community Pillar was conclu ded in 2019.  
• The ASEAN FFM delegations and the ASEAN Secretariat will prepare the FFM  report and submit 
it to the Senior Economic Official Meeting (SEOM) meeting in August 2022. The SEOM review ed 
and provided  a comprehensive assessment r eport for consideration  to the ASEAN Economic 
Ministers (AEM) meeting in September 2022.  
• The ASEAN Coordinating Council Working Group (ACCWG) on Timor -Leste 's ASEAN 
Membership Application, which consist s of Senior Officials from Economic, Socio -Cultural, and 
Political- Security community pillar met in October 2022 to consolidat e the three FFM 
assessment reports and the respective ASEAN Ministerial meeting 's outcome for the ASEAN 
Summit in November 2022.  
• ASEAN admits new members based on consensus within the ASEAN Summit upon the ASEAN 
Coordinating Council 's (ACC) recommendation (ASEAN Charter, Article 6.3).  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  • At the ASEAN Summit on 11 November 2022, ASEAN leaders, based on the Fact Finding 
Missions on all pillars,  issued a statement on the Application of Timor -Leste for ASEAN 
membership, agreeing, in principle, to admit Timor -Leste to be the 11th member of ASEAN, to 
grant Timor -Leste an observer status and to allow its participation in all ASEAN meetings 
including the Summit plenaries  and to formalize an objective criteria -based Roadmap for 
Timor -Leste's full membership including based on the milestones identified in the reports of 
the Fact -Finding Missions conducted by the three ASEAN Community pillars.  
• The 42nd ASEAN Summit in May  2023 during Indonesia 's Chairmanship adopted the roadmap 
for Timor -Leste’s full membership to ASEAN . 
Next steps:  
ASEAN member states, ASEAN external partners and ASEAN Secretariat would further work with Timor -Leste for the implementation of the roadmap until obtaining its full Membership. Based on the 
recommendations of the Fact -Finding Missions, capacity building on ASEAN Economic Community 
related issues have started.  
  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX 27 
Timor -Leste's m embership in the multilateral economic organizations and trade -related 
programs of o ther multilateral organizations 
• Asian Development Bank (ADB);  
• Community of Portuguese Language Countries (CPLP);  
• Food and Agricultural Organization (FAO);  
• International Bank for Reconstruction and Development (IBRD);  
• International Centre for Settlement of Investment Disputes (ICSID);  
• International Development Association (IDA);  
• International Labour Organization (ILO);  
• International Finance Corporation (IFC);  
• International Monetary Fund (IMF); 
• International Telecommunication Union (ITU);  
• Intern ational Court of Justice (ICJ);  
• International Maritime Organization (IMO);  
• Multilateral Investment Guarantee Agency (MIGA); 
• United Nations (UN);  
• United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP);  
• World Customs Organization (WCO); 
• World Health Organization (WHO);  
• World Intellectual Property Organization (WIPO);  
• World Organization for Animal Health (OIE); and, 
• World Tourism Organization.  
 
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  APPENDIX  
[Draft Decision ] 
ACCESSION OF THE DEMOCRATIC REPUBLIC OF TIMOR -LESTE  
Decision of […]  
 The Ministerial Conference,  
 Having regard to  paragraph 2 of Article XII and paragraph 1 of Article IX of the 
Marrakesh  Agreement Establishing the World Trade Organization (the "WTO  Agreement"), and the 
Decision -Making Procedures under Articles IX and XII of the WTO  Agreement agreed by the General 
Council ( WT/L/93 ), 
 Taking note  of the application of the Democratic Republic of Timor -Leste for accession to the 
WTO Agreement dated 7 April 2015, 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of the Democratic R epublic of Timor -Leste to the WTO  Agreement and having prepared a 
Protocol on the Accession of the Democratic Republic of Timor -Leste, 
 Decides  as follows:  
 The Democratic Republic of Timor- Leste may accede to the WTO  Agreement on the terms and 
conditions set out in the Protocol annexed to this Decision.  
 
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  DRAFT PROTOCOL  ON THE ACCESSION OF THE DEMOCRATIC REPUBLIC OF TIMOR -LESTE  
Preamble  
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval 
of the Ministerial Conference of the WTO accorded under Article  XII of the Marrakesh  Agreement 
Establishing the World Trade Organization (hereinafter referred to as the "WTO  Agreement"),  and the 
Democratic Republic of Timor- Leste (hereinafter referred to as " Timor -Leste"), 
 Taking note  of the Report of the Working Party on the Accession of Timor -Leste to the 
WTO Agreement reproduced in document WT/ACC/TLS/[ ..], dated […] (hereinafter referred to as the 
"Working Party Report"),  
 Having regard  to the results of the negotiations on the accession of Timor -Leste to the 
WTO Agreement,  
 Agree as follows:  
PART I - GENERAL  
1. Upon entry into force of this Protocol pursuant to paragraph 8, Timor -Leste accedes to the 
WTO Agreement pursuant to Article  XII of that Agreement and thereby becomes a Member of 
the WTO.  
2. The WTO  Agreement to which Timor -Leste accedes shall be the WTO Agreement, including the 
Explanatory Notes to that Agreement, as rectified, amended or otherwise modified by such legal 
instrume nts as may have entered into force before the date of entry into force of this Protocol.  This 
Protocol, which shall include the commitments referred to in paragraph  337 of the Working Party 
Report, shall be an integral part of the WTO  Agreement.  
3. Except as otherwise provided for in paragraph  337 of the Working Party Report, those 
obligations in the Multilateral Trade  Agreements annexed to the WTO  Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by Timor -Leste as if it had accepted that  Agreeme nt on the date of its entry into force. 
4. Timor -Leste may maintain a measure inconsistent with paragraph  1 of Article  II of the GATS 
provided that such a measure was recorded in the list of Article  II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to the GATS on Article  II Exemptio ns. 
PART II - SCHEDULES  
5. The Schedules reproduced in the Annex to this Protocol shall become the Schedule of 
Concessions and Commitments annexed to the General  Agreement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT  1994") and the Schedule of Specific Commitments annexed to 
the General  Agreement on Trade in Services (hereinafter referred to as "GATS") relating to  
Timor -Leste . The staging of the concessions and commitments listed in the Schedules shall be 
implemented as specified in the relevant parts of the respective Schedules.  
6. For the purpose of the reference in paragraph 6(a) of Article  II of the GATT  1994 to the date 
of that Agreement, the applicable date in respect of the Schedule of Concessions and Commitments 
annexed to this Protocol shall be the date of entry into force of this Protocol.  
PART III - FINAL PROVISIONS  
7. This Protocol shall be open for acceptance, by signature or otherwise, by Timor- Leste until […]  
or such later date as may be decided by the General Council.  
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by Timor -Leste.  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  9. This Protocol shall be deposited with the Director -General of the WTO.  The Director -General 
of the WTO shall promptly furnis h a certified copy of this Protocol and a notification of acceptance by 
Timor -Leste thereto pursuant to paragraph 7 to each Member of the WTO and to Timor -Leste.  
10. This Protocol shall be registered in accordance with the provisions of Article  102 of the Charter 
of the United Nations.   
 Done at […] this […] day of […] in a single copy in the English, French and Spanish languages, 
each text being authentic, except that a Schedule annexed hereto may specify that it is authentic in 
only one of these language s, and the Working Party Report is authentic in English only.  
 
_______________  WT/ACC/SPEC/TLS/5/Rev.3  
 
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  ANNEX  
SCHEDULE CLXXVIII  – TIMOR -LESTE  
Authentic only in the English language.  
(Circulated in document WT/ACC/TLS/ ../Add.1)  
_______________  
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES  
LIST OF ARTICLE  II EXEMPTIONS 
Authentic only in the English language.  
(Circulated in document WT/ACC/TLS/ ../Add.2)  ] 
 
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