RESTRICTED  
  
WT/ACC/TLS/3  
 
23 June 2017  
(17-3380) Page: 1/120 
Working Party on the Accession of Timor -Leste  Original: English  
 
ACCESSION OF TIMOR -LESTE  
 
MEMORANDUM ON THE FO REIGN TRADE REGIME  
 In a communication circulated in document WT/ACC/ TSL/1 on 8 November 2016 , the 
Democratic Republic  of Timor -Leste  applied for accession under Article XII of the Agreement 
Establishing the World Trade Organization (WTO).  
 
 The General Council established a Working Party on 7 December 2016 (document 
WT/ACC/ TSL/2 refers ) with the following terms o f reference:  "To examin e the application of the 
Democratic Republic of Timor -Leste  to accede to the WTO Agreement under Article XII, and to 
submit to the General Council recommendations which may include a draft Protocol of Accession. " 
 
 In accordance with the established proced ures (document WT/ACC/ 22/Rev.1 ), the 
Secretariat is circulating the attached Memorandum on the Foreign Trade Regime received from 
the Democratic Republic of Timor -Leste.  WTO Members wishing to submit questions on the 
Memorandum are invited to do so by 28 July 2017  for transmission to the Timor -Leste  authorities.  
 
 
_______________  
 
 
 
 
 
 
 
 
  
 WT/ACC/TLS/3  
 
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  TABLE OF CONTENTS  
 
I.  INTRODUCTION  ................................ ................................ ................................ ....... 6 
II.  ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE  ................................ ..........  7 
1.  Economy  ................................ ................................ ................................ .................  7 
- Current economic situation  ................................ ................................ .....................  8 
2.  Economic policies  ................................ ................................ ................................ .... 9 
- Main directions of the ongoing economic policies  ................................ ....................  9 
- Monetary and fiscal policy  ................................ ................................ .....................  11 
- Foreign exchange and payment system  ................................ ................................  14 
- Investment regime  ................................ ................................ ................................  15 
- State ownership and privatisation  ................................ ................................ .........  16 
- Pricing policy  ................................ ................................ ................................ .........  17 
- Competition policy  ................................ ................................ ................................  17 
3.  Foreign trade in goods and services  ................................ ................................ ...... 18 
4.  Domestic trade in services including value and comp osition of foreign 
direct investment  ................................ ................................ ................................ .. 19 
5.  Information on financial movements relating to nationals working abroad, 
remittances, etc.  ................................ ................................ ................................ ... 19 
6.  Information on growth in trade in goods and services over recent years 
and forecasts for years to come  ................................ ................................ ............  20 
III.  FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES  ................................ ..........  20 
- Powers of executive, legislative and judicial branches of Government  ..................  20 
- Government entities responsible for making and implementing policies 
affect ing foreign trade  ................................ ................................ ..........................  21 
- Division of authority between central and sub -central Governments  ....................  22 
- Legislative programs or p lans to change the regulatory regime  ............................  23 
- Laws and legal acts  ................................ ................................ ...............................  23 
- Description of judicial, arbitral or administrative tribunal or procedures  ..............  23 
IV. POLICIES AFFECTING TRADE IN GOODS  ................................ ...............................  24 
- Trading rights, registration requirements for engaging in importing and 
exporting ................................ ................................ ................................ ...............  24 
- Trade facilitation  ................................ ................................ ................................ ... 24 
A. IMPORT REGULATIONS  ................................ ................................ .........................  26 
- Characteristics of national tariff  ................................ ................................ ............  26 
- Tariff quotas, tariff exemptions  ................................ ................................ .............  26 
- Other duties and charges  ................................ ................................ ......................  27 
- Fees and charges for services ren dered  ................................ ................................  27 
- Quantitative import restrictions, including prohibitions, quotas and 
licensing  systems  ................................ ................................ ................................ .. 28 
- Import licensing procedures  ................................ ................................ .................  28 WT/ACC/TLS/3  
 
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  - Customs valuation  ................................ ................................ ................................ . 28 
- Rules of origin  ................................ ................................ ................................ ....... 29 
- Other border measures  ................................ ................................ .........................  29 
- Other customs formalities  ................................ ................................ .....................  29 
- Pre-Shipment inspection  ................................ ................................ .......................  29 
- Application of internal taxes on imports  ................................ ................................  29 
- Anti-dumping regime  ................................ ................................ ............................  30 
- Countervailing duty regime  ................................ ................................ ...................  30 
- Safeguard regime  ................................ ................................ ................................ .. 30 
B. EXPORT REGULATION  ................................ ................................ ...........................  30 
- Customs tariff nomenclature, types of duties, duty rates, weighted 
average of rates  ................................ ................................ ................................ .... 30 
- Quantitative export restrictions, including prohibitions, quotas and 
licensing systems  ................................ ................................ ................................ .. 31 
- Export licensing procedures  ................................ ................................ ..................  31 
- Other measures  ................................ ................................ ................................ ..... 31 
- Export financing, subsidy and promotion policies  ................................ .................  31 
- Export performance requirements  ................................ ................................ .........  31 
- Import duty drawback schemes  ................................ ................................ ............  31 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS  ...............................  31 
- Industrial policy, including subsidy po licies  ................................ ..........................  31 
- Technical barriers to trade, standards and certifications  ................................ ....... 32 
- Sanitary and phytosanitary measures  ................................ ................................ ... 32 
- Trade -related investment measures  ................................ ................................ ...... 33 
- Free zones, special economic zones  ................................ ................................ ...... 34 
- Trade -related environmental policies  ................................ ................................ .... 34 
- Mixing regulations  ................................ ................................ ................................ . 34 
- Government -mandated counter -trade and barter  ................................ .................  34 
- Trade agreements leading to country -specific quotas allocation  ...........................  34 
- Government procurement  ................................ ................................ .....................  34 
- Regulation of trade in transit  ................................ ................................ ................  35 
- Agricultural policies  ................................ ................................ ..............................  35 
(a)  Imports  ................................ ................................ ................................ .................  35 
(b)  Exports  ................................ ................................ ................................ ..................  35 
(c) Export prohibitions and restrictions  ................................ ................................ ...... 36 
(d) Export credits, export credit guarantees or insur ance programmes  ......................  36 
(e)  Internal Policies  ................................ ................................ ................................ .... 36 
- Policies affecting foreign trade in other sectors  ................................ ....................  36 
V.  TRADE -RELATED INTELLECTUAL PROPERTY REG IME ................................ .............  36 
1. GENERAL  ................................ ................................ ................................ ...............  36 
- Intellectual property policy  ................................ ................................ ...................  37 WT/ACC/TLS/3  
 
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  - Responsible agencies for policy formulation and implementatio n .........................  37 
- Membership of international intellectual property conventions and of 
regional  or bilateral agreements  ................................ ................................ ..........  37 
- Application of national and most favoured nation treatment to foreign 
nationals  ................................ ................................ ................................ ...............  37 
- Fees and ta xes ................................ ................................ ................................ ...... 37 
2.  SUBSTANTIVE STANDARDS OF PROTECTION  ................................ .........................  37 
- Copyright and related rights  ................................ ................................ .................  37 
- Trademarks, including service marks  ................................ ................................ .... 38 
- Geographical Indications, including appellations of origin  ................................ .... 38 
- Industrial designs  ................................ ................................ ................................ . 38 
- Patents  ................................ ................................ ................................ ..................  38 
- Plant variety protection  ................................ ................................ .........................  38 
- Layout designs of integrated circuits  ................................ ................................ .... 38 
- Requirements on undisclosed information, including tr ade secrets and test 
data ................................ ................................ ................................ .......................  38 
- Other categories of intellectual property  ................................ ...............................  38 
3.  MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS  ................  38 
4.  ENFORCEMENT  ................................ ................................ ................................ ...... 39 
- Civil judicial procedures and remedies  ................................ ................................ .. 40 
- Provisional measures  ................................ ................................ ............................  40 
- Any administrative procedures and remedies ................................ ........................  40 
- Any special border measures  ................................ ................................ ................  40 
- Criminal procedures  ................................ ................................ ..............................  40 
5.  LAWS, DECREES, REGULATIONS AND OTHER LEGAL ACTS  ................................ ..... 40 
6.  STATISTICAL DATA ON APPLICATIONS FOR AND GRANTS OF 
INTELLECTUAL PROPERTY RIGHTS, AS  WELL AS ANY STATISTICAL DATA 
ON THEIR ENFORCEMENT  ................................ ................................ ......................  40 
VI.  TRADE -RELATED SERVICES REGIME  ................................ ................................ ...... 41 
1.  GENERAL  ................................ ................................ ................................ ...............  41 
2.  POLICIES AFFECTING TRADE IN SERVICES  ................................ ...........................  41 
- Government departments, agencies, professional associations or other 
bodies with authority or a role relevant to the conduct of service activities  ..........  42 
- Judicial, arbitral or administrative tribunals or procedures providing for 
the review of, or remedies in relation to, administrative decisions 
affecting trade in  services ................................ ................................ .....................  42 
- Provisions, including those in international agreements, concerning 
qualification requirements and procedures, technical standards and 
licensing and/or  registration requirements for the  supply of services  ..................  42 
- Provisions governing the existence and operation of monopolies or 
exclusive  service suppliers  ................................ ................................ ...................  42 
- Provisions relating to safeguard measures as they apply to trade in 
services  ................................ ................................ ................................ .................  42 
- Provisions relating to international transfers and payments for current  
transactions of services  ................................ ................................ ........................  42 WT/ACC/TLS/3  
 
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  - Provisions relating to capital transactions affecting the supply of services  ...........  42 
- Provisions governing the procurement by Governmental agencies of 
services  ................................ ................................ ................................ .................  43 
- Provisions concer ning any form of aid, grant, domestic subsidy, tax 
incentive or promotion scheme affecting trade in services  ................................ .... 43 
3.  MARKET ACCESS AND NATIONAL TREATMENT  ................................ .......................  43 
- Limitations on the number of Service Suppliers  ................................ ....................  43 
- Limitations on the total value of service transactions or assets  ............................  43 
- Limitations on the total number of service operations or on the total 
quantity of service output  ................................ ................................ .....................  43 
- Limitations on the total number of natural persons that may be employed 
in a particular service sector  ................................ ................................ .................  43 
- Restrictions on, or requirements on specific types of legal entity through 
which a service may be supplied  ................................ ................................ ...........  43 
- Limitations on the participation of foreign capital  ................................ .................  44 
- Measures providing for less than the treatment accorded to national 
services or  service suppliers  ................................ ................................ .................  44 
4.  MOST FAVOURED NATION TREATMENT  ................................ ................................ . 44 
VII.  TRANSPARENCY  ................................ ................................ ................................ .... 44 
- Publication of information on trade  ................................ ................................ ....... 44 
- Notifications  ................................ ................................ ................................ ..........  45 
VIII.  TRADE AGREEMENTS  ................................ ................................ .............................  45 
- Bilateral or plurilateral agreements relating to foreign trade in goods and 
trade in services  ................................ ................................ ................................ ... 45 
- Economic integration, customs union and free -trade area agreements  .................  45 
- Labour markets integration agreements  ................................ ...............................  46 
- Multilateral economic cooperation, membership in the multilateral 
economic organizations, trade -related programs of other multilateral 
organizations  ................................ ................................ ................................ ........  46 
ANNEXES  ................................ ................................ ................................ ........................  47 
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  I.  INTRODUCTION  
1. The Democratic Republic of Timor -Leste (hereinafter: Timor -Leste) applied for accession to 
the World Trade Organization (WTO) in April 2015. At the meet ing of the General Council on 
7 December 2016, Members considered the application for WTO accession of Timor -Leste , and 
established the Working Party on the accession of Timor -Leste (see document WT/ACC/TLS/2).  
2. Timor -Leste assigns priorit y 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 is committed to WTO membership and there is a 
strong po litical will , across all partisan lines,  in support of implementation of domestic structural, 
legislative and policy reforms needed to comply with its future WTO commitments, to be defined in 
accordance with Article XII of the Marrakesh Agreement Establish ing the World Trade Organization 
(hereinafter: the Marrakesh Agreement). This commitment is supported by the objectives of 
Timor -Leste's domestic economic and trade policy.  
3. Timor -Leste is a low income Least Developed Countr y (LDC), with a total GDP of US $3,033 
million (in 2015). Initially highly dependent on international development aid (from 2002 to 2006), 
the petroleum industry (offshore oil and gas) is nowadays a major contributor to the economy 
(61% in 2014) while non -oil GDP growth experienced an ave rage 8.6% per year in the 2007 to 
2014 period. Besides petroleum revenues, Timor -Leste 's economy has historically been centered  
on the agricultural sector, with a high prevalence of subsistence production and small exports of 
coffee and other cash crops. I n recent years the private sector has expanded rapidly, with high 
growth in private construction, wholesale and retail trade, hospitality services and transport and 
communications. Private sector investment increased by 17.3% in 2014.  
4. The main pillar of Ti mor-Leste 's economic policy has been the investment frontloading 
strategy, which was adopted in 2010, whereby the Government  finances investment in 
infrastructure and human capital development. Whereas the provision of electricity to all parts of 
Timor -Leste has been almost completed over the last couple of years, the Government 's priority is 
now to upgrade and improve the transportation infrastructure, particularly roads, ports and 
airports. Government  expenditure for Capital a nd Development, currently at US$349 million , is 
projected to peak at US$1,354 million in 2019. These investments aim at providing the necessary 
foundations for long -term private sector led economic growth. In fact, the Government  is 
encouraging focused investments in downstream oil an d gas, agriculture, fisheries, tourism, light 
manufacturing and mining . 
5. This Memorandum consists of the following eight chapters: ( i) Introduc tion; ( ii) Economy, 
Economic  Policies and Foreign Trade; ( iii) Framework for Making and Enforcing Policies  Affecting 
Foreign Trade in Goods and Trade in Services ; (iv) Poli ces Affecting Trade in Goo ds; 
(v) Trade -Related Intellectual Property Regime; ( vi) Trade -Related  Services  Regime ; 
(vii) Transparency ; and (viii) Trade Agreements .  
  WT/ACC/TLS/3  
 
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  II.  ECONOMY, ECONOMIC P OLICIES AND FOREIGN TRADE  
1.  Economy  
- General D escription   
 
6. Timor -Leste comprises the E astern half of the island of T imor, the nearby islands of Ataú ro 
and Jaco , and the enclave of Oe -Cusse Ambeno on the north -western  side of the island, 
surrounded by the Indonesian Province of West Timor. The  country's size is 14,919 km2. It is a 
Least -developed country (LDC). Despite the country's small size, it has more than 4 2 dialects and 
Tetum and Portuguese as official languages, and Indone sian and English as the 
working  languages.  
7. After 24 years of resistance , the Timorese people voted to be independent through a United 
Nations supervised  referendum. Timor -Leste became the  first new sovereign S tate of the 
21st century, on 20 May 2002, when independence was restored and the country was faced with 
the daunting task of rebuilding its institutions and basic infrastructure from the ground up. 
Following further unrest and displac ement in 2006, and a sustained state building and capacity 
development process, Timor -Leste has built a more inclusive political coalition and increased 
tangible services to its people. The resulting political stability – and increased confidence in the 
state – provides a strong foundation for growing the economy, creating jobs, and raising incomes.  
8. According to the 2015 National Census, the population of Timor -Leste was 1,167,242  
inhabitants .  Approximately 71.88% lived in rural areas and rely primarily on farming for survival. 
There are about 206,483 households with an average  of 5.7 inhabitants each. The population is 
young, fast -growing and highly poor. Timor -Leste has completed three living standards surveys (in 
2001, 2007 and 2014). These surveys have revealed that  poverty rates have decreased as 
measured by both  the national and the i nternational poverty rate. The National poverty rate was 
50% in 2007 , and it has decreased to 41.8% in 2015. Poverty rates measured by international 
standards also improve d from 47.2%  in 2007 to 30.3%  in 2014 . The fact that the international 
poverty rate shows a bigger improvement  means that Timor -Leste is doing better in reducing its 
extreme poverty rate. However, this does not mean that poverty has ended. Much more needs to 
WT/ACC/TLS/3  
 
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  be done to ensure that all Timorese live in prosperity and participate in the wealth of the nation. 
The Government  remains committed to working towards these important goals . Over 45% of the 
population is below 15 years of age. 70% of the population is under 30 years of age. The country 
has a high fertility rate (5.3  births per woman in 2012), which means that an estimated 470,000 
individuals are expected to enter the labo ur market by 2030.  
9. The country 's vision, set out in the Timor -Leste  Strategic Devel opment Plan 2011  – 2030 
(SDP), is transformation from a low -income country to an upper -middle -income country with a 
healthy, well -educated, and safe population by 2030 , whereby poverty will have been eradicated . 
The SDP recognizes that achieving strong rates of economic growth over the medium and long 
term will require diversification of the economy away from petroleum production and Government  
spending. Some sectors that the Government  has highlighted to drive economic d iversification are 
downstream petroleum sectors, agriculture, tourism, fisheries, light manufacturing  and mining . 
Timor-Leste has also identified private investment as a key to economic growth. While this will 
require major changes in the domestic economy,  the country recognizes that it will benefit from 
being open to the regional and global economy.  
10. Timor -Leste 's external policies are generally liberal, with low tariffs and few substantial 
non-tariff barriers to trade. The country was born free and fully e ngaged in building a democratic 
State ruled by the law, with a free market economy. The goal is to have a private sector -led 
market economy by the year 2030. However, non -oil exports are still quite small, largely due to 
the high costs of doing business wi thin Timor -Leste , low productivity  and the relatively high cost of 
transport and trade.  
- Current economic situation  
11. Since independence  in 2002, economic management and performance in Timor-Leste have 
improved substantially. Transformation has been driven by the discovery of offshore oil and 
gas, agreements to develop these resources, and prude nt management of the resulting revenues 
through estab lishing the Petroleum Fund – a sovereign wealth fund that is aligned to the 
Santiago Principles on Sovereign Wealth Fund Management1. Oil sector revenues grew from 
US$53 million in 2003 to US$2,360  million in 2006. Gross Domes tic Product (GDP) at constant 
prices increased by 131% in 2004, 53% in 2005, and 61% in 2006. The increased p etroleum 
receipts freed the Government  from dependence on development assistance, and in 2007 the 
Government  rapidly increased  the size of the budget, with extra spending on transfers, social 
protection and small-scale public works. The Government  also co ntinued to maintain independent 
management of oil revenues as mandated by the Law 9/2005, of 3 August, the Petroleum 
Fund Act. Gross n ational per capita income in the non-oil sector, which fluctuated  in the range of 
US$500 – 800 between 2000 and 2007, increased continuously after 2006; real non-oil GDP grew 
by 11.3% in 2007, 14.2% in 200 8, 12.9%  in 2009, 10.1%  in 2010 and 8.2% in 2011.2 
12. Timor -Leste depended on Donor Assistance for nine (9) years after its independence. 
From 2008 onwards, Timor -Leste graduated from being a development assistance -dependent 
country. H owever, there is some fragility as the economy remains highly dependent on oil 
revenues and vulnerable to fluctuations in world oil prices. The strong growth in non-oil GDP since 
2006 has been prec ipitated by increased  public sector  expenditure financed by p etroleum 
revenues. Within non-oil GDP, construction, trade and tourism, and public services are the 
dominant sectors. The Government  contributes over half of non-oil GDP, and the small size of the 
non-Government  non-oil sector  has led to the ratio of imports of goods and serv ices to non-oil 
GDP exceeding 100%. Growth of non-oil GDP increased to 9% around 2010 and 2011 as 
Government increased budget allocation to infrastructure projects. GDP later s lowed to 5.8%  
in 2012 and 2 .8% in 2013 as the fiscal s timulus eased, before increasing to 5.9% in 2014 
(see ANNEX 1 ). 
                                                
1 Santiago Principles: formally known as the Generally Accepted Principles and Practices (GAPP) for 
Sovereign Wealth Funds.  
2 Timor -Leste National Accounts 2000 -2014.  WT/ACC/TLS/3  
 
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  13. The majority of households in Timor -Leste are rural and agricultural. Most workers are in the 
agricultural sector, approximately  two-thirds of the labo ur force in 2010 (see ANNEX 2). Given the 
low level o f agricultural output , Timor -Leste has a large agricultural sector with low productivity, 
operating at close to subsistence level.3 The sole significant non-oil export crop is coffee, which is 
grown in smallholdings and provides income for households including approximately one  quarter of 
the population.4 
14. Timor -Leste 's domestic market continues to be poorly integrated. At independence the 
inherited infrastructure was poor, and much of the population was engaged in subsistence 
agriculture. Since independence, and especially since 2006, Timor -Leste has made major 
improvements to its infrastructure. Nevertheless, internal trade costs remain high, rural areas are 
often isolated, and economic activity (and registered unemployment) rema ins concentrated in Dili, 
the capital city.  
15. In the short term , public spending on social services can improve rural living standards, but 
the long -term development challenge for Timor -Leste  is to increase agricultural productivity, and 
to provide jobs for the people who will leave the agricultural sector. Increased trade will have little 
immediate  impact  on  subsistence  households,  but  it  will  help  to  secure  export  market  for 
agricultural product and create non -agricultural jobs.  
16. The Ministry of Finance has forecasted non -oil GDP growth in the range of 3.5 -6.5% per 
annum in the medium term with inflation below 4% per annum. Multilateral institutions , such as 
the Asian Development Bank (ADB), International Monetary Fund (IMF), and the World Bank , have 
made similar forecasts. Longer -term projections depend on the sustainability of oil and gas 
revenues . The country has significant oil and gas reserves and new fields are scheduled to start 
exploitation in the near future. Although income levels are low and poverty remains a serious 
issue, Timor -Leste 's economy has very little external debt and will likel y continue to have a strong 
external balance as long as petroleum revenues continue to accrue.  
17. From an international perspective, Timor -Leste is working to improve its perception 
indicators and global position. For overall ease of doing business, Timor -Leste ranked 175th out of 
190 countries covered by the World Bank 's Doing Business indicators for June 2016. By the 
"Trading Across  Borders " indicator, Timor -Leste ranked well at 94th position, 112th on acce ss to 
electricity, and 130th for ease of paying taxe s. On other Doing Business components, such as 
registering property, resolving insolvency, and contract enforcement, Timor -Leste was ranked 
187th, 169th, and 190th respectively. In the World Bank 's Logistics Performance Index in 2007, 
Timor -Leste ranked 14 9th out of 150 countri es5. On the Transparency Internat ional Corruption 
Index for 2016, Timor -Leste has made good progress for the past two years and it was ranked 
123rd out of 167 countries.  
2.  Economic policies  
- Main directions  of the ongoing economic policies  
18. The overall objective of Timor -Leste 's economic polic ies, as envisaged in the S trategic 
Development Plan 2011 – 2030 (SDP) , is to create a private s ector-led marke t-based  economy . 
The objectives of the Government  are to promote economic diversification, attract private 
investment, and support secure job creation  for a youth population. The economic vision of the 
SDP is that by 2030, Timor -Leste will be part of the group of upper -middle  income countries, 
extreme poverty will be eradicated and a non -oil sustainable and diversified economy will 
be established.  
                                                
3 The 2013 Labour Force Survey reports a working -age population of 696,200, of which only 189,800 
(27%) are employed, i.e. working for pay or profit; of these, 55,000 were salaried employees or employers 
divided roughly equally between the public and private sectors.  
4 The World Bank (Expanding Timor -Leste's Near -Term Non -Oil Exports, page 12) reported that in 
2010 coffee provided income for 67,000 households, representing about 30% of the population. Fishing 
also provides some income.  
5 Data from the World Bank's Logistics Performance Index on Timor -Leste are available only for 2007 
and based o n the reality in 2006, when the country went through a period of political and civil unrest.  WT/ACC/TLS/3  
 
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  19. The SDP resulted from a nationwide consultation and consensus building process. The SDP  
has bee n the main reference document for Timor -Leste 's development efforts and enjoying strong 
political support across all partisan lines. As a result, there is a resilient  political will in the country, 
supporting an economic reform and growth strategy . The Government  is now laying down the 
inherent foundations , by way of Economic Reform and Growth Guides (GRFE) . 
20. The GRFE sets forth guidelines for the ongoing  legal and policy  reforms being implemented 
to build a strong, stable and transparency -enabling  environment to encou rage a competitive 
private sector in order to reduce costs of doing -business. Besides international best practices 
inherent to a free and predictable market ruled by the law, legal economic reforms under way in 
Timor -Leste are inspired  by and aimed at compliance with ASEAN, WTO, the World Bank, and 
Asian Development Bank standards and guidelines. C urrent legal reforms being implemented 
focus, namely,  on: (i) the  creation of an easy, secure and transparent legal regime and regulatory 
framework for business to operate . This encompasses the replacement of obsolete frameworks 
with more modern and simplified laws  and regulations, such as the Law on Commercial 
Companie s, Commercial Regist ration,  Commercial Licensing,  and Private Investment Law,  as well 
as the approval of key commercial laws  that meet international standards , such as arbitration and 
mediation, insolvency , and laws covering secured transactions, and intellectual property ; (ii) the 
elimination of unnecessary and exce ssive bureaucracies that raise costs for doing business , and 
provide the private sector inputs at a reasonable co st, including access to land and financial 
services , streamline process for imports and exports,  and improvements in Government  service 
delivery; (iii) s trengthen institutions to implement current reforms , including the establishment of 
effective service de livery systems to the business sectors;  (iv) the develop ment of  private sec tor 
supporting infrastruc tures, such as electrical power production and distribution, roads , ports and 
airports , water, sanitation and hygiene networks, which are essential t o competitive economic 
activit ies and the welfare of the people ; and, (v) the identification of specific measures to develop 
priority economic sectors , such as downstream oil and gas; agriculture; fisheries; tourism; light 
manufacturing ; and mining . 
21. A key area of reform is the system of investment attraction and facilitation. The Government  
is developing an Investment Refo rm Map  (IRM) , in support  of a forward -looking Investment Policy, 
with focus on attract ing FDI in sub -sectors of the economy that are promising to investors , and 
have a significant development impact. The I RM complem ents the revision of the Private 
Investment Law , which eliminates the ex -ante screening process for FDI, replaced by se ctoral 
licensing and a limited N egative List of restricted sectors. TradeInvest  Timor -Leste , the country 's 
Investment Promotion Agency, has been re-focused to concentrate on the sub -sectors identified in 
the IRM.  
22. In the medium -term, non -oil exports will focus on agricultural cash crops including coffee, 
spices and other niche products. Improving farm -level productivity  and domestic transp ort 
infrastructure , and reducing shipping costs will be important factors in the growth of agricultural 
cash crops. In the long -term, Timor -Leste has considerable potential to develop a profitable 
commercial forestry industry. High value species such as sa ndalwood, teak , rosewood  and 
mahogany are each well suited to Timor -Leste 's climatic and soil conditions. Forestry has the 
potential to also supply wood processing and furniture industries for the domestic market. The 
Fisheries sector also has significant potential to be expanded. Timor -Leste has recently licensed 
foreign investors in the maritime fishing sector. In the medium term, the Government  is planning 
to develop port and fish processing facilities in Laut ém District to capture increased economic 
value from this natural resource.  
23. Tourism is nominated by the S DP as a priority sector. The Government  of Timor -Leste has 
adopted a Tourism Policy and is undertaking intensive planning in the public sector to support 
growth in tourism. The major market s for tourists currently are Australia, Indonesia, Singapore 
and Portugal. It is expected that , besides the traditional sun, sand and sea tourism,  Timor -Leste 
has great potentials for niche tourism markets for scuba diving, cultural tourism and historical 
touris m, which  will drive growth in visitor numbers in the medium term. The minimum target is to 
increase visitors from the current 55,000/year to 200,000/year by the year 2030, requiring further 
infrastructure development.  WT/ACC/TLS/3  
 
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  24. The use of the US$, relatively high minimum wages and a high cost structure provide 
obstacles to manufacturing development in the medium -term. The Government  is focusing on 
developing industrial capacity by adding value to agricultural products and attracting investment in 
food processing and beverage manufacturing aimed at the domestic market.  
25. Oil and gas resources finance  about 80% of the Government Budget  and, as such , are the 
backbone of Timor -Leste 's economy. The Government  has embarked on plans to add value to 
future oil and gas extraction by building an oil and gas supply base on the Southern Coast of 
Timor -Leste. The Government  is also developing a Special Economic Zone (SEZ) in the special 
administrative region of Oe -cusse. SEZ focus es on attracting investors in agriculture, 
manufacturing and tourism.  
26. Taken together , the ongoing economic policies seek to use Timor -Leste 's finite oil and gas 
resources to finance economic diversification. Oil and gas will continue to provi de the bulk of State 
revenues. The Government  is planning to drive investment in the economy, both through SEZ and 
through a more focused approach to investment attracti on and facilitation. Agricultural cash crops, 
forestry, maritime fisheries and the tour ism sector all hold significant potential for expansion in 
economic o utput and growth in employment.  
- Monetary and fiscal polic y 
27. Relevant laws with respect to the monetary and fiscal policy and the free flow of capital in 
Timor -Leste are: (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 
Exportatio n 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 201 1, as amended  by Law No. 4/2013  of 
14 August  2013, on the Anti -Money Laundering and Counter Financing of Terrorism Law; and , 
(vi) Regulation No. 1/2013  of 6 September 2013 on the Minting and Use of C oins. 
28. According to Decree -Law No. 20/2003  of 13 November 2003, on the Official Currency in 
Timor -Leste, and Article 79.1 of Law No. 5/2011, of 15 June 201 1, on the Central Bank of 
Timor -Leste (CBTL) framework, the sole official currency of Timor -Leste is the US Dollar. 
Consequently, Timor -Leste does not have its own specific  currency policy and, thus, it is 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, as per the current legislation, this scenario 
is viewed by  Timor -Leste 's authorities as a transitory regime. In fact, as per Articles 79.1 and 79.3 
of Law No. 5/2011 of 15 June 2011, on the Central Bank of Timor -Leste (CBTL) Framework, the 
US$ is Timor -Leste 's currency and has mandatory legal tender status therei n until a specific 
currency regime is defined and implemented pursuant to the Constitution of the Democratic 
Republic of Timor -Leste. However, there is no indication of whether or when Timor -Leste might 
adopt its own currency. Currently, the Government has  entrusted the CBTL to undertake research 
to study such a possibility.  WT/ACC/TLS/3  
 
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  Coins of Timor -Leste (Central Bank)  
 
 
One cent, corresponding to US $0.01  
     
Twenty five  cents, corresponding to US $0.25  
    
Five cents, corresponding to US $0.05  
  Fifty cents, corresponding to US $0.5 
       
Ten cents, corresponding to US $0.10  
  One hun dred cents, corresponding to US $1.00  
        
 
29. In Timor -Leste, only US Dollar banknotes as well as coins issued by the CBTL can circulate. 
In respect of coins issued locally, there are six different coins as follows:  One cent, corresponding 
to US$0.01; Five cents, corresponding to US$0.05; Ten cents, corresponding to US$0.10; 
Twenty  five ce nts, corresponding to US$0.25;  Fifty cents, corresponding to US$0.5; and 
One hundred cents, corresponding to US$1.00. 
30. Once a specific currency regime is developed in Timor -Leste, the powers and responsibilities 
with respect to the definition and execution of the monetary policy and the issuance of the 
country 's own currency will be  exclusively entrusted to the CBTL. The CBTL is an independent and 
autonomous entity from both the Government  and the National Parliament. Such independence 
and autonomy in the performance of its duties and obligations are assured, inter alia , by the fact 
that the Governor, Vice -Governors an d non -executive members of the B oard of Directors of the 
CBTL cannot, as a rule, be removed from office, except under very specific grounds as provided for 
in the relevant laws.    
31. The CBTL 's portfolio may include the fo llowing 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 denominated 
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 
accredited by foreign Government s, central banks, 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.  
32. Due to lim itations on monetary  policy,  aggregate macroeconomic balance primarily  depends 
on fiscal policy . Government  expenditure is mainly funded by offshore petroleum production . 
Consequently, Timor -Leste has minimal government  debt. 
WT/ACC/TLS/3  
 
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  33. The Government  has maintained macroeconomic stability since independence, with inflation 
briefly exceeding ten per cent in 2011 and 2012 , but generally kept to single digits.6 The high 
inflation from 2010  – 2012 was due to expansionary fiscal policies that stimulated do mestic 
demand , and to poor infrastructure that kept trade costs high.7 Scaling back fiscal expansion in 
2013 moderated inflationary pressures. The consumer price index increased by 1.0% in 2014 and 
0.6% in 2015 , but is expected to decrease in 2016  statisti cs when made available . This low 
inflationary period in Timor -Leste can mainly be attributed to international factors such as the 
appreciation of the US dollar against the majority of Timor -Leste 's trading partners ' currencies 
and the decrease in the inter nationa l price of oil and food prices.  
34. As Timor -Leste's public finance is highly dependent on revenues from the oil and gas sector, 
which respond to 78% of the 2017 State Budget (US$1.4 billion),8 in addition to the ongoing 
economic reform, the Government of Timor -Leste is implementing a five -year 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) a more balanced budget between 
revenues and expenses. To that end, current sources of revenue are being assessed, along with 
ways and means to reform expenditures.  
35. There is a strong political will to take any required compliance measure s, with technical 
assistance, namely from the Japan International Cooperation Agency (JICA) and the Asian 
Development Bank (ADB). As such, the Government of Timor -Leste intends to introduce modern 
taxation legislatio n to improve revenue collection, i.e., t o adopt a Value Added Tax (VAT) Law, 
to revise the Taxes and Duties Act, and to modernize the Customs Procedures Code and the 
Tax Procedure Code, as the main components of the ongoing Fiscal Reform  (as described in 
Sections "Trade Facilitation" and "Applic ation of internal taxes to imports" ). The drafting of 
new policies, tax and customs laws follows the standards and guidelines of the WTO and ASEAN, 
as if Timor -Leste was already a member of those two organizations.  
36. The VAT Law will be considered for approv al in the near future, aiming at the following main 
objectives: (i) modernize the tax system and improve collection, by generating information on the 
key elements of value added (wages and profits) and improving record keeping; (ii) raise revenues 
more eff iciently, by reducing the number of tax instruments the administration has to manage in 
order to collect a given level of revenue. In so doing, Timor -Leste will be in a position to consider 
replacing import duties, while both the sales tax and the service tax could become redundant; 
(iii) create a level -playing field and reduce the cost of doing business, through its incidence on 
consumption and creating incentives for compliance that are even across all firms and sectors in 
the economy, since it works thro ugh invoice -backed refunds at different stages in the value chain; 
(iv) improve the business environment and attract investment, by inducing increased 
documentation of transactions, thus increasing transparency and confidence in the economy. In so 
doing, z ero-rating exports turn the whole country into a de -facto tax -free zone for exports, which 
is already the case, thus making the country more attractive for investment; and, (v) reduce 
informality in the economy, by granting crediting/refund mechanisms to t he informal sector. Such 
mechanisms will serve as incentives for the informal sector to come into the VAT net. Efficient 
coverage of the value chain will be ensured and the threshold will be set at the adequate level.  
37. In order to meet the above objectives,  the Government of Timor -Leste is considering a 
relatively simple VAT system, comprising the following main characteristics: 
(i) a consumption -based VAT, with the tax falling on final consumers, including 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, with full information to be 
able to make refunds or credits on exports; (iii) single rate for VAT, to avoid "che ating" and ease 
complexity of administration; (iv) zero -rating limited to exports, thus working as a tool to attract 
FDI and turning the whole of Timor -Leste into a duty -free zone; and, (v) exemption limited to 
non-processed foods, which do not enter the v alue chain and can therefore be safely exempted, 
thus benefiting more than 60% of most vulnerable families' consumption in Timor -Leste. The VAT 
                                                
6 The end -of-year consumer price index, base December 2012, was 56.7 (2003), 57.0 (2004), 58.7 
(2005), 62.6 (2006), 67.4 (2007), 72.5 (2008), 72.3 (2009), 78.1 (20 10), 90.2 (2011), 100 (2012), and 
104.0 (2013).  
7  IMF, Staff Report for the 2013 Article IV Consultation, page 21.  
8 State Budget 2017.  WT/ACC/TLS/3  
 
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  will replace the sales tax and compensate for the tax revenue that will be lost from the phasing out 
of import d uties.  
38. As a result of the overall Fiscal Reform, the Government expects to develop and adopt an 
improved tax collection and administration system, supported by modern Information Technology 
(IT), a more developed service delivery culture, a stronger integr ity of government officials, and 
an enhanced accountability system.  
39. The Fiscal Reform Commission (FRC) provides significant training for tax and customs staff. 
Any reform legislation goes through an intense public consultation process with the business 
community, the civil society and other stakeholders, before being discussed within the 
Government for approval.  
- Foreign  exchange and payment system  
40. Foreign exchange and payment system is controlled by t he Central Bank  of Timor -Leste 
(CBTL), which  has powers and the responsibilities to define, develop, and adopt applicable foreign 
exchange rules in the country. In performing its duties as the foreign exchange authority, the 
CBTL is entitled to carry out foreign exchange transactions and hold and manage official foreign 
currenc y reserves .  
41. Prices of all goods and services, and the monetary consideration in respect of all other 
transactions, shall 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, must be made in US Dollars. This does not mean that the parties to a 
given contract are prevented from denominating the relevant transaction in a foreign currency. 
However, in such a scenario, the debtor may always make such payments in local currenc y at the 
exchange rate of the day on which it is due, except if an express waiver to that possibility is 
included in the contract . 
42. Currently there are no foreign exchange restrictions in force in Timor -Leste, except on the 
transportation of physical curren cy to and from the country.  Under the cur rent regulations , Public 
Instruction No. 4/2009  of 2 September 2009 on Importation and Exportation of Cash, issued by 
the C BTL, both the importation of cash into Timor -Leste and the exportation of cash out of Timor -
Leste in an amount exceeding US$10,000, or its equivalent in foreign currency, requires the 
CBTL's prior authorization. Such Public Instruction further states that if the relevant amount being 
imported and/or exported exceeds US$5,000, or its equival ent in foreign currency, but does not 
exceed US$10,000, or its equivalent in foreign currency, it must be declared before the Customs 
officer at the port of arrival and or departure, as the case may be. There are no similar restrictions 
in respect of wire transfer of funds (irrespective of the currency and amounts in question) into or 
from bank accounts opened in Timor -Leste, with the exception  of Know Your Customer and 
anti-money -laundering rules.  
43. Timor -Leste  Anti-Money Laundering and Counter -Terrorism Fin ancing Law (AML -CTF), Law 
No. 17/2011 , of 28 December 2011 as amended by Law No. 5 /2013 , of 14 August 2013,  is based 
on some of the fundamental principles and rules of the European model, notably those 
contemplated by EU Directives No. 2005/60/EC and No. 2 006/70/EC.  Anti-money -laundering rules 
have an impact on flows of payments and transfer transactions. In fact financial institutions are 
required to refrain from performing transactions (including payments and transfers), regardless of 
the amount involved,  that they suspect to be  related  to  money  laundering  or  financing  of  
terrorism,  and  shall  report  their suspicions to the Financial Information Unit, which was created 
within the CBTL. As well, when financial institutions (and other entities sub ject to the AML -CTF) 
carry out one -off transactions in an amou nt equal to or greater than US$ 10,000, in one or more 
apparently linked transactions, financial institutions are required to comply with specific 
identification duties with respect to their cust omers and beneficial owners of the underlying 
transaction. Regarding financial institutions, such identification duties are further developed by 
instructions of the CBTL, by means of Public Instructions.   WT/ACC/TLS/3  
 
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  - Investment regime  
44. Timor -Leste 's major objectives on investment are to promote and encourage both domestic 
and foreign investment and to increase the role of the private sector in the country 's economic 
development, namely by creation of employment opportunities.  
45. The Private Investment Law (Law No. 44/III (3a)  of 25 April  2016) is the main statute 
providing for the rules governing investment operations in the country by both domestic and 
foreign investors, and its regime does not limit  or affects the frameworks set  forth in international 
treaties ratified by Timor -Leste.  
46. Among the rights and guarantees  enshrined in the law are: (i) e qual treatment; (ii) r ight to 
access to courts; (iii) right to access land; (iv) right to import and export; (v) right to access 
credit ; (vi) right to freely transfer funds out of the country; (vii) right to recruit foreign workers 
and their right to freely transfer net -salary out of the country; (viii) p rotection of inte llectual 
property rights; (ix) e qual treatment between national and foreign investors, except with respect 
to the minimum investment amounts and restrictions applicable to land ownership pursuant to the 
Constitution; and, (x) p rotection against arbitrary nationalization  and expropriation without 
fair compensation.    
47. The Private Investment Law also grants tax and customs benefits and incentives to 
invest ment with a minimum value of US $50,000 for resident Timorese investors, US $1,500,000 for 
foreign investors and non -resident Timor -Leste investors, a nd US $750,000 for partne rship 
agreements between foreign investors and resident Timorese investors, if the latter controls at 
least 75% equity with voting rights in the relevant companies. However, this will change in the 
revised Private Investment Law. The minimum value will be regulated by a Government Decree. 
The tax and customs incentives include; (i) 100% income tax exem ption for a period of between 
5 and 10 years, depending on the lo cation of the investment; (ii) f or the purpose of determining 
the tax base, shall be consider ed as costs, up to 100% of all expenses incurred with the 
construction and repair of road access infrastructures not associated with the exercise of taxable 
business activities, which benefit workers and populations in the corresponding areas; (ii i) 100% 
sales tax exemption for a period of between 5 and 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 investmen t or re -investment project; (iv ) 100% services tax  exemption, for a period of 
between 5 and 10 years, depending on the location of the investment, in relation to developments 
geared towards the pro visions of specific services; (v) t ax deduction of up to 100% of training 
expenses incurred for Timor -Leste n ationals; (v i) 100% customs duties exemption on imports for a 
period of between 5 and 10 years, depending on the location of the investment, in relation to all 
capital goods and equipment  used in the construction or man agement of the investment or 
re-investment project; and, (vii) opportunity to lease state -owne d real estate property for 
a 50-year term, renewable once for an equal term.  
48. Projects of national importance, due to their economic, social, technology, and 
environmental impact may be subject to a s pecial investment agreement regime to be negotiated 
with the invest or and under the special conditions approved by the Government .  
49. There are few restrictions on investment  other than postal services, public communications, 
weapon productions and distribution, and in zones that may affect protected areas, which are 
primarily reserved for the State. Prospection , exploration, and production of oi l and gas, mining 
activities,  and public private partnerships are also subject to specific legal regimes . More 
information on the regulation under the Law on Private Investment and measures affecting foreign 
investment  is contained in ANNEX 3  and ANNEX 4. 
50. Prospection, exploration and production of oil and gas, is subject to the  rules provided for in 
Law No. 3/ 2005, the Petroleum Activities Law , which  sets forth the legal regime for all petroleum 
activities undertaken in the territory of Timor -Leste. The objective of the Law is to provide as 
many benefits to Timor -Leste and its people as possible , by establishing a regulatory regime that 
will allow petroleum companies to develop petroleum resources in  the national territory. Another 
objective of the law is to ensure stability and transparency in regulating the development of 
petroleum resources. The Petroleum Activities Law does not apply to the exploration and 
exploitation activities in the JDPA, sinc e this is an area established between Timor -Leste and WT/ACC/TLS/3  
 
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  Australia, as a provisional arrangement under the Article 83.3 of the United Nations Convention on 
the Law of the Sea. Petroleum contracts take the form of production -sharing contracts. 
Participation of  the State in the oil operations is subject to the terms agreed upon with the 
selected companies in the respective production sharing contracts.  
51. Mining activities, including licensing of extractive minerals (mines and quarries) for medium 
and large mineral  extractive activities are subject to a special legal framework , Ministerial Diploma 
2/2014 of 18 February  2014. The legal regime doe s not apply to small-scale activities undertaken 
manually by small family economic units, in which the amount o f extraction  does not exceed 
30 tonnes per month . Licensing of extractive minerals  
52. A new  modern  draft M ining Code was approved by the Council of Ministers on 
9 August  2016, and sent to the National Parliament for consideration and ultimate approval. The 
draft code is a comprehensive law that regulates all mining activities including recognition, 
prospecting, evaluation, development, and exploitation, processing, refining and trading. With its 
20 sections, 148 articles and 3 annexes , it regulates administrative procedur es for gra nting 
licenses and authorizations, as well as norms to define concession areas, rights, obligations and 
rules of inspection and supervision. The draft code also covers all phases of mining activities and 
includes provisions 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.  
53. Under this new mining  law, right or permit is awarded following a competitive tender 
procedure ( general rule) or direct award (in exceptional cases). Government can proceed with the 
direct award in the following cases (Article 11.1 and 11.2): (i) the area to be released is 
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 ar e always assigned by direct contract.  The Government expects 
that the draft code will promote and facilitate the discovery and exploitation of mineral resources 
in order to promote economic and social benefits to the country  
54. Investment in Timor -Leste may a lso be pursued through a Public Private Partnership ( PPP). 
The Legal Framework for PPPs was approved by Decree -Law No. 42/2012 , of 7 September 2012, 
and further amended by Decree -Law No. 2/2014 , of 15 January 2014. PPP contracts are allowed 
not only for construction and execution of public infrastructure, but also for their design, operation, 
and maintenance. Additionally, regulations are also in for the structures required to implement 
PPPs, as well as the statutory basis for the approval of PPP procurement procedures in accordance 
with the respective project cycle  (this cycle includes the following  phases: Initial Phase, Viability 
Phase, Procurement and Negotiation Phase, and Implementation an d Operation Phase).  
55. TradeInvest Timor -Leste i s the Government 's one-stop shop agency for investors. Based on 
its by-laws, Decree -Law No. 45/2015  of 30 December  2015, its role is to promote, facilitate, 
coordinate, and supervise private investment , by centralizing all administrative procedures that 
must be followed by investors who wish to enjoy the tax and customs incentives set forth in the 
Private Investment Law.  
56. TradeInvest Timor -Leste website (http://www. investtimor -leste.com ) contains general 
information about Timor -Leste 's investment framework and regulations, as well as the latest 
investment news and brief descriptions of certain investment opportunities by economic sector and 
geographical location. It also provides social and economic data on the country.  
- State owners hip and privatisation  
57. There are currently no Governmental or non -Governmental enterprises, including marketing 
boards, with exclusive rights or privileges in export or import operations.  WT/ACC/TLS/3  
 
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  - Pricing  policy  
58. Timor -Leste adopts open economic policies aimed at facilitating business in the country. 
There are 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 public supply of essential 
goods; (ii ) Government Decree No. 13/2008  of 13 August 2008, which sets forth the rules for 
intervention in public supply and prices; (iii) Decree -Law No . 29/2011  of 20 July 2011, approving 
the framewor k on Fair Prices (this statute establishes 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 the supply of basic commodities to the public 
and management of negative effects arising from inflation; Ministry of Tourism, Commerce and 
Indust ry Ministerial Order No. 6/2008  of 24 December 2008, which sets forth measures to 
Stabil ize Prices, Fight Inflation and Prevent Speculation; (v) Ministry of Tourism, Commerce and 
Industry Minist erial Order No. 6/MTCI/III/2011  of 23 March 2011, concerning the sale price and 
distribution of locally produced maize; (vi) Government Resolut ion No.  13/2012  of 9 May 2012, 
which sets forth the maximum sales margins of certain essential goods and measures to fight 
inflation; and (vii) Ministry of Tourism, Commerce and Industry Mini sterial Order No. 1/2013  
of 30 January 2013, concerning the intervention  over the public supply of rice and standardization 
of prices. The main goal of these statutes is 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 is done only in exceptional circumstances and is applicable only to certain 
goods and services that are deemed vital for the subsistence of the country 's most 
vulnerable  families.  
59. Pursuant  to Decree -Law No. 29/2011  of 20 July 2011, the f ollowing products, for local 
distribution and sale, are currently subject to different types of price controls. The Government 
intervention is aimed at controlling speculation and mark-up of retail and sales prices in the 
domestic market at large: (i) products subject to a maximum price regime – rice; cooking oils; 
food intended fo r infants up to 1 year of age; cement; iron rod for building; g asoline for motor fuel 
classified by customs tariff no. 2710 11,  both in wholesale and retail; d iesel for motor fuel  
classified by custom tariff no. 2710 19,  both in wholesale and retail; f uel oils classified by custom 
tariff  no. 2710 19; and, l iquefied petroleum gases, classified by custom tariff no. 2711 13; and, 
(ii) products subject to a monitored price regime – sugar (retail); rice (wholesale and retail); c orn 
(import  and marketing retail stages); c hicken, rooster, hen meat and other offal (import  and 
marketing retail stages); c ement (marketing retail stages); t axis and  chauffeurs driven hired cars; 
urban c ollectiv e transports; i nterurban collective transports; c ookin g oils (wholesale and retail); 
eggs in  their natural state (retail); pasta; s and and stones for the building  and construction 
sectors; and, m edication to be specified by the Ministry of Health.  
- Competition  policy 
60. As a result of Timor -Leste 's current level of economic development and private investments, 
the country has yet to elaborate competition policies. Furthermore, as there are limited major 
corporations or business groups (and no listed companies, as there is currently no securities 
exchange) that have the ability to control or monopolize sectors of the economy,  the country has 
yet to establish a national competition authority, although certain public polici es aimed at 
regulating specific sectors of the economy have been approved in the past, and in certain 
economic sectors there are references to the possibility of regulating competition (notably in the 
telecommunications and petroleum downstream sectors).  
61. However, t he Government  recognizes the importance of competition for the strategic 
development of the economy , both domestically and internationally and promote economic growth 
and development. For this reason, it has recently established a workgroup to dis cuss and prepare 
a competition policy , based on international standards .  
62. Moreover, the National Parliament has passed the Consumer Protection Law No.  8/2016  
of 8 July 2016, which establishes 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 applies to goods and services supplied, rendered and transmitted by any natural, and 
legal, national and international, public and private persons, w ho develop, on a professional basis, 
activities of production, manufacturing, exporting, importing, construction, distribution, 
transportation or sale of goods and services, with a view to obtaining benefits. The Government  WT/ACC/TLS/3  
 
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  intends  to regulate , in the near future , the Consumer Protection Law. Further discussions will 
continue to define the main areas to be regulated and the required i nstitutional to ensure law 
enforcement.  
3. Foreign  trade in goods and services  
63. Timor -Leste 's balance of payments is dominated by revenues from the Joint Petroleum 
Development Area (JPDA) in the Timor Sea. Under the 2002 Timor Sea Treaty between the 
Government s of Timor -Leste and Australia, the two countries jointly control, manage, and facilitate 
the exploration and exploitation of the petroleum resources in the JPDA for the benefit of the 
people of Timor -Leste and Australia. Timor -Leste 's JPDA revenues rose rapidly until 2008, but then 
fell as world oil prices decre ased. The revenues picked up again, more than doubling between 
2009 and 2012, before dropping in 2013 and 2014 (see ANNEX 5). In sum, the Timor Sea 
petroleum revenues constitute a substantial windfall, but one characterized by volatility and a 
finite time horizon , as they are non -renewable resources . 
64. External trade has grown rapidly since 2006 (see ANNEX 6  and ANNEX  7). In 2014, total 
goods exports amounted to US$3,809  million, of which minerals, primarily oil and gas, accounted 
for US$3,792  million, and ser vices exports amounted to US$62 million. Imports of goods and 
services in 2014 were US$2,396  million, with imports of construction services, Government  goods 
and services, and maintena nce and repair services accounting for US$1,356 million. An essential 
feature  of the ec onomy since 2006 is that the oil revenues have permitted large surpluses in the 
current account of the balance of payments, although the surpluses decreased  in 2013  and, 
especially, in 201 4. 
65. The compos ition of both exports and imports is heavily concentrated in a small number of  
goods and services (see ANNEX 8, ANNEX 9 and ANNEX 10). Apart from the dominant oil and gas 
exports, almost all of the remaining goods exports are agricultural products, mainly coffee. Travel 
(US$30 million) and Government  goods and services (US$6 million) accounted for 58% of the 
US$62 million service exports in 2014. Construction services (US$522 million), Government  
goods and services (US$326 million), and maintena nce and repair services (US$508 million) 
accounted for over half of the US$2,396  million imports of goods and services in 2 014. 
66. Timor -Leste 's balance of payments is driven by petroleum income. These revenues allow the 
country to run a large deficit on non -oil trade, as well as building up the Petroleum Fund. Imports 
are primarily associated with the rapid upgrading of the country 's infrastructure, as well as 
providing  most of the country 's non -food consumer goods. Exports of non -oil goods and services 
are small, less than US$100 per capita. With rising incomes, private sector import demand will 
increase and, given the unpredictability of energy markets and longer -term revenue flows, it is 
essential to increase non -oil export earnings.  
67. At independence, imports came primarily from Indone sia (US$43 million out of 
US$48  million total in 2003). Since then, Indonesia, Singapore, Malaysia, Thailand and Vietnam 
have consistentl y been among Timor -Leste 's top ten import suppliers, while imports from other 
ASEAN countries have been small, apart from a one -off peak of US$69 million in imports from 
Philippines in 2008 (in recent years the Philippines figure has been under one million  dollars). 
There is, however, considerable year -on-year change in trade partner rankings, primarily due to 
the small values involved  and once -off imports of capital goods . In 2010 Indonesia (US$96 million) 
was the numbe r one source, with Singapore (US $45 m illion) second and Australia (US$25 million) 
third. In 2011 , the top three import sources were Indonesia (US$98 million), Finland 
(US$69  million), and China (US$60 million). In 2012 , the main import sources were Finland, 
Indonesia, and Malaysia (see ANNEX 11(a)). In 2013 Indonesia, Malaysia and Singapore we re the 
main import sources  and in 2014, Indonesia, Singapore and China were the main import sources 
(ANNEX  11(B)). Apart from the one -off surge in imports from Finland9, the main suppliers outside 
ASEAN are China, Australia, Japan, Portugal and Hong Kong.  
68. Singapore, Malaysia, and Indonesia are the ma in destinations within ASEAN for non -oil 
exports (see ANNEX 12).  Merchandise exports outside ASEAN are dominated by coffee exports, 
with Germany and the USA together accounting for over four -fifths of the total value of coffee 
exported in 2012 (US$7.9 and US$7.8 million respectively (see ANNEX 13 and ANNEX  14). When 
                                                
9 Finland: import of electrical power production and distribution equipment .  WT/ACC/TLS/3  
 
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  interpreting the direction of trade data with respect to exports, one should bear in mind that apart 
from oil and gas , and coffee , the total amounts are small.  
4. Domestic trade in services including value and composition of foreign direct 
investment  
69. The service sector is of critical importance for Timor -Leste econom ic growth , with particul ar 
emphasis on tourism and related services. To ensure that the industry is developed in a 
sustainable, effective and efficient manner, t he Government  approved a National Tourism P olicy, 
on 7 March  2017, in order to create a national tourism identity and launch Timor -Leste as an 
international emerging tourism destination.  
70. In order to increase the level and quality of investments in the country, the Government  has 
been designing  a new  streamlined investment regime, based on international best practices and  
aligned with ASEAN standards . As mentioned earlier, a new Private Investment Law has already 
been approved by the National Parliament.  
71. The list of approved investments in Timor -Leste provides the insight into the dynamics of 
the non -oil non -Government  sector. Some projects may not seek Government  approval in order to 
avoid the associated bureaucratic hurdles . However , failure to obtain such approval (which is not 
mandatory) precludes access to investment incentives. As with investment approval data 
anywher e, the list may include projects that are not implemented, and actual investment and 
employment may differ from projected numbers.10 Thus, the data in ANNEX 15 must be treated 
with caution.  Between 2006 and early 2014, 162 investment projects were approved, of which 
110 were by foreign investors, 51 were domestic investors, a nd one was a joint venture. 
The revised figures, which remove redundant projects, present a more realistic picture. The total 
value of the 100 approved projects that have either been implemented or have a reasonable 
prospect of being implemented is US $309 million. ANNEX 16 lists the projects expected to have 
over a hundred employees. The ten largest projects by capital investment have a total projected 
investment of US$116 million, and account for over half o f the total value of the 100 ap proved 
projects . There are some large projects, measured by employment or capital, but most projects 
are small or medium -sized. The approved investments include hotels and tourism facilities, 
construction, fuel distribution s ervices, industrial projects to produce cement, beer, and other 
construction materials, and telecommunications. Some well -known multinationals are present, 
including Heineken, which is invest ed US$45 million in a new brewery and is now fully operational.  
5. Information on financial movements relating to nationals working abroad, 
remittances, etc.  
72. Timor -Leste experienced large and poorly monitored migration flows in the years just before 
independence. Since then , there has been smaller net out-migration, mainly to neighbouring  
countries in Southeast Asia or Australasia, but also to Europe. Temporary migration schemes have 
been coordinated with the Government s of South Korea and Australia, but the numbers involved 
have been small.11 Permanent emigration from Timor -Leste in 2013 is estimated to have been 
26,200 to Asian destinations, 11,343 to Australasia, 1,823 to Europe, and 72 to the rest of the 
world, a total of 39,438, or three per cent of the population.12  
73. All people born in Timor -Leste before 2002 are eligible for Portuguese passports, and an 
unknown number have migrated to the European Union, many of whom work in the United 
Kingdom.13 Reported rem ittance inflows increased rapidly after 2008 and reached US$137 million 
                                                
10 The 2009 approvals were dominated by a US$300 million hotel services project, and the 2007 figure 
by a US$162 million engineering project; these two projects accounted for over half of the projected 
investment in Timor -Leste over the eight -year period, but neither has been implemented.  
11 The South Korean program, set up in 2008, allows for work on one to three year contracts; by early 
2015, 1,637 workers had taken advantage of the scheme, working in fisheries, agriculture and manufacturing. 
Timor -Leste citizens have qualified for the Australia n Seasonal Worker Program since 2012, and 135 workers 
participated in 2014 in the agriculture and hospitality sectors.  
12 There  were 5,436 immigrants in 2013 ( Asian Development Bank, Pacific Opportunities (ADB, Manila, 
2015), pages 142 -4). 
13 The Internation al Organization for Migration estimates that 17,000 Timorese on Portuguese passports 
are in the UK. The cost of migrating to the UK is high (US$3,000), but these emigrants probably account for a 
majority of remittance inflows into Timor -Leste.  WT/ACC/TLS/3  
 
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  in 2010, which was substantially more than revenues from export of  non-oil goods and services. 
In 2012, however, remittances began to decline, before dropping sharply to US$34 million in 2013 
(ANNEX 17). Emigration and remittances help to alleviate rural poverty, and the diaspora could be 
useful in promoting international trade.  Household survey data, although  not up -to-date, suggests 
that remittances mostly help to cover routine expenses and home improvements, although about a 
third of remittance -receiving households use the funds to invest in children 's education or in 
business ventures.  
 
6. Information on gr owth in trade in goods and services over recent years and 
forecasts  for years to come  
74. The compos ition of both exports and imports is heavily concentrated in a few goods and 
services. Apart from the dominant oil and gas exports, almost all of the remaining goods exports 
are agricultural products, mainly cof fee. Travel (US$30 million) and Government  goods and 
services (US$6 million) accounted for 58% of the US$62 million service exports in 2014. 
Construction services (US$522 million), Government  goods and services (US$326 million), and 
maintena nce and repair services (US$508 million) accounted for over half of the US$2,396  
million imports of goods and services in 2 014. 
III. FRAMEWORK FOR MAKING  AND ENFORCING POLICI ES AFFECTING FOREIG N TRADE 
IN GO ODS AND TRADE IN SERV ICES  
- Powers of executive, legislative and judicial branches of Government  
75. The Constitution of the Democratic Republic of Timor -Leste (hereinafter: Constitution) was 
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 legitimate representati ves of the 
Timor ese People.  
76. As provided for in the Constitution, Timor -Leste is 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 Judiciary . In accordance with these principles, four organs of 
sovereignty exist: (i) the Preside nt of the Republic; (ii) the National Parliament; (iii) the 
Government ; and , (iv) the Courts.  
77. The President  of the Republic  is the Head of State  and the Supreme Commander of the 
Defense Force. The President of the Republic  is elected by universal, free, d irect, secret, and 
personal suffrage , for a five -year term, is invested and takes oath before the National Assembly 
and can be re -elected only once.  
78. The Government  in Timor -Leste 's Parliamentary regime is headed by a Prime -Minister , who 
is nominated by the President  of the Republic after consultation with the sitting parliamentary 
parties, c onsidering the electoral results and the existence , or not , of political majority party or 
partisan coalition or colligation possible. The Governm ent is the supreme  organ of public 
administration,  and is the organ of sovereignty responsible for conducting and executing the 
general policy of the country and is vested with legislative powers .  
79. Articles 74 to 89 of the Constitution define the role a nd powers of the President. 
The President is elected by universal, free, direct, secret, and perso nal suffrage (Articles 65.1, 
75 and 76). The President has the power to appoint the members of the Government, upon 
proposal from the Prime Minister (Article 106 .2). Among the President 's powers is the power to 
either promulgate or to veto laws passed by the National Parliament and Decree -Laws approved by 
the Government (Article 88), and also the power, in limited circumstances, to dismiss the 
Government (Article 86(g)) , i.e. only if the National Parliament reject s the Government program 
for two consecutive times.   
80. Timor -Leste has a unicameral legislature consisting of a  minimum 52 and a maximum 
of 65 representatives elected in secret ballot  elections for a five -year mandate. Under the 
Constitution, the National Parliament has the power to approve international treaties, conventions 
and other international agreements, approve legislation i n several areas, including the S tate Plan 
and the State Budget , as well as International Agreements, Convention and Treaties, subject to WT/ACC/TLS/3  
 
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  approval, denunciation or ratification by the Parliament (Article 95.3(f) of the Constitution). Once 
the treaty is approved, denounced or ratified, the Resolution and the te xt of the diploma will be 
sent to the President of the Republic for promulgation (Article 85(a) of the Constitution).  
81. Timor -Leste legal system  adopts the general or customary principles of international laws 
(Article 9 of Constitution). Rules provided for  in international conventions, treaties and agreements 
shall apply in Timor -Leste internal legal system. All rules that are contrary to the provision of 
international conventions, treaties and agreements applied in the Timor -Leste  internal legal 
system sha ll be invalid  (see Section " Trade Agreements " for the list of international conventions, 
treaties and agreements signed by the Government of Timor -Leste ). 
82. The Constitution sets forth some divisions between the legislative powers of the National 
Parliament and the Government : (i) there are certain areas, that the National Parliament holds 
exclusive responsibility to pass laws, (ii) other areas that the National Parliament may legislate or 
authorize the Government  to legislate, (iii) overlapping areas of legi slative powers, in which both 
bodies may take, (iv) and areas of exclusive reserve of legislative powers of the Government . 
The legislative acts enacte d by the Parliament are called L aws, and the legislative acts enacted by 
the Government  are called Decree -Laws. Both Laws and Decree -Laws have to be submitted to the 
President of the Republic for promulgat ion before being published in the official gazette  
("Jornal  da República ").  The continuing effect of laws from before independence is exp lained in 
ANNEX  18. 
83. In accordance with the Constitution, Timor -Leste judicial system is comprised of: (i) the 
Supreme Court of Justice, which is the highest court of appeal, and in some cases  a Court of First 
Instance; (ii) t he High Administrative, Tax and Audit Court, which acts as the appeal court f or 
decisions taken by tax and administrative courts of first instance; and , (iii) Military Courts.  
84. Maritime and Arbitration Courts m ay be created . However, the Constitution prohibits the 
creation of Special Courts to judge certain categories of criminal offences. Courts are so vereign 
bodies, independents and subject only to the Constitution and the law.  
85. The court system of Timor -Leste  is still in transition from the pre -independence court system 
to the court system envisaged under the Constitution. Thus not all of the judicial institutions 
described in the Constitution have been created. The Government  is yet to create the Supreme 
Court of Justice or the High Administrative Tax and Audit Court. As such, the court syste m 
continues to consist of four D istrict Courts (in Díli, Baucau, Suai, and Oecussi ), and one Court of 
Appeal in Dili . These courts address all matters, i.e. civil, crimina l, tax, and administrative matters, 
and funct ion as Courts of first instance  to supervise public finance and to ensure transparency in 
public accounts.  
- Government  entities responsible for making and implementing policies affecting 
foreign trade  
86. Trade Polic y matters are the responsibility of the current Ministry of Comm erce, Industry 
and Environment (MCIE), which coordinates the work with other li ne ministries that have 
jurisdiction over trade -related matters, such as  the Ministry of Finance, and the Minist ry of 
Agriculture and Fisheries.  
87. MCIE is responsible for developing trade pol icies on an industry -wide basis, and policies 
related to consumer protection, as well as administering the laws affecting supply of goods and 
services. Policy regarding developing an intellectual property law , and commercial licensing  is also 
vested upon MCIE .  
88. The Ministry of Finance has the responsibility for drafting,  executing, coordinating and 
assessing the policies for the  areas of annual budget and finance planning and monitoring. This 
includes general economic advice for the Government  and on the Government  tax policies. Laws 
affecting the levying of customs dutie s are administered by the Directorate General of Customs, 
which is a division of the Ministry of Finance, and has the responsibility to oversee Government  
policies relating to improving the administration of both imports and exports.  WT/ACC/TLS/3  
 
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  89. Policies regarding qu arantine are within the responsibility of the Ministry of Agriculture and 
Fisheries, which also has the responsibility for drafting, executing, coordinating and assessing the 
policies for the areas of agriculture, forestry, fisheries and livestock. This in cludes the 
responsibility for promoting and inspecting food production, including seeds, and to promote the 
development of fisheries and livestock industry.  The Ministry of Agriculture and Fisheries is also 
responsible for phytosanitary measures.  
90. The Minister of State, Coordinating Minister for Economic Affairs (MECAE), is the Senior 
Minister that supports the Prime -Minister in the supervision of the economic policy areas of the 
country and direct ly coordinate s the following line ministries and sectors : (i) Ministry of Agriculture 
and Fisheries, (ii) Ministry of Commerce, Industry and Environment, (iii) Ministry of Tourism, Art s 
and Culture, (iv) Ministry of Public Works, Transports and Communication, (v) Secretary of State 
for Vocational T raining and E mployment Policy, (vi) L ivestock and Fishing Industry and , 
(vii) Cooperative S ectors. MECAE is the Minister responsible for implementing the Guide to 
Economic Reform and Growth  (GRFE) , a program aimed at promoting economic diversification and 
improving bus iness environment in Timor -Leste. The first GRFE was derived from the Strategic 
Development Plan (SDP) and covers the mandate of the VI C onstitutional Government 
2015 - 2017.  
91. Laws affecting foreign investment are administered by TradeInvest, an agency that is under 
MECAE 's oversight and is charged with administering the relations of the State with private sector 
investors. This agency is responsible for proposing policy with respect to foreign investment, to 
support and facilitate implementation of investme nt projects and to promote investment 
opportunities in the country.  
92. Laws pertaining to establishing legal entities are implemented by the Commercial 
Registration and Verification Service (SERVE). This agency, established under Decree -Law 
No. 35/2012 , of 18  July 2012, is comprised of representatives from the Ministry of Finance, the 
Ministry of Commerce, Industry, and Environment, and the Ministry of Justice. Legal statutes 
affecting the licensing of businesses are jointly enforced by SERVE and the Ministry of Commerce, 
Industry and Environment, with the exception of certain business services sectors, such as the 
financial services sector.  
93. Policies regarding the regulation of specific services sectors sub -sectors fall under the 
responsibility of a number of M inistries as outlined in ANNEX 19. 
- Division of authority between central and sub -central Government s 
94. The State of Timor -Leste is a unitary state wit h one central Government , but  divided 
into 12 Municipalities and 1 Special Administrative R egion. Municipalities were created by Law 
No. 11/2009 , of 7 October 2009 , and further amended by Law No.  4/2016 of 25 May 2016, 
although they are yet to become effec tively operational. Municipalities are divided into 67 
Administrative Posts whi ch may be further divided into Sucos (i.e. , villages ). The C entral 
Government operates administratively in each of the 12 municipalities.  The legal framework that 
regulates Government services at the local level is provided by Decree -Law No. 3/2016 of 16 
March 2016 . Laws of the C entral Government also define the  competence and functioning of L ocal 
Governments (Article 72.2 of the Constitutio n). Municipalities are considered Autonomous 
Administration of the State/Local Government , even though t hey do not yet have local legislatures. 
The Ministry of State Administration oversees the Municipal Authorities and the Municipal 
Administrations, which  implement the Government activities at the loc al level, with some degree 
of autonomy.   
95. The Constitution also provides for Local Government s to be established. In the near future, 
it is anticipated that Local Governments will be directly elected by the res pective constituencies, 
and become real Local Powers, thus not depending hierarchically on the Central Government. The 
authorizing Law is now being drafted. L ocal Government s will be established gradually . It is 
expected that the first elections will be held in the next 5 years.  
96. More recently, the National Parliament created the Oe -Cusse Ambeno Special Administrative 
Region, and established the Oecusse Ambeno and Ataúro Special Social Market Economy Zone 
aimed at  creating the conditions to increase bo th foreign and local investment in those regions. WT/ACC/TLS/3  
 
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  The Administra tive Region 's executive bodies have been granted the following powers in order to 
pursue their objectives: regulatory, administrative, economic and financial powers, concession of 
public servi ces, supervision of certain sectors, and expropriation in the public interest.  
- Legislative programs  or plans to change the regulatory regime  
97. Over the last two years, the Governm ent has been engaged in the process of updating and 
transforming the legal and regulatory system  in structural sectors and areas  in order to reinforce 
rule of law . The ongoing reforms include  revision of  commercial and fiscal laws, including 
procedures for business licensing , and are intended to meet international standards , consistent 
with the WTO requirements  (see ANNEX 20).   
98. The following laws have recently been enacted by the President of the Republic: (i) Private 
Investment Law; (ii) C ommer cial C ompanies  Law; and, (iii) Commercial R egistration Procedures . 
The Tax Law has been drafted but is awaiting formal approval process .  
99. The following new laws are now being d rafted to be consistent with WTO standards or are in 
the formal approval process : (i) Insolvency L aw; (ii) Arbitration and Mediation L aw (already 
approved by the Council of Ministers on 20 December 2016) ; (iii) Comm ercial L aw; and, 
(v) VAT Law. 
100.  The Land and Property has just been enacted, on 1 June 2017, by the President of the 
Republic and is awaiting publication in the Official Gazette.  
- Laws and legal acts  
101.  All laws and legal acts to be valid and in force shall be published in the Timor -Leste's Official 
Gazette ( http://www.mj.gov.tl/jornal/ ). The list of laws and legal acts, and other normative legal 
decrees regulating customs, impor ts, exports, transit, rules on foreign investment, and economic 
questions influencing trade in goods and services is presented in  ANNEX 21. 
102.  The general or customary principles of  international law are automatically part o f the 
Timor -Leste legal system, as per the Constitution. However, the rules provided for in international 
conventions, treaties and agreements shall only apply in the internal system following their 
approval, rati fication or accession by the respective competent organs and after publication in the  
official gazette .   
103.  While t he Government s holds the responsibility  to negotiate and prepare accession to 
international treaties, the National Parliament has the main responsibility to approve and /or 
denounce agreements, as well as ratify international treaties and conventions,  and the President is 
responsible f or orderin g the publication of R esolution by the National Parliament approving 
agreements and ratifying international treaties and conventions .  
104.  For Timor -Leste to become a member of the W TO it has to ratify the Marrakes h Agreement 
in accordance with the Constitutio n. The initiative to negotiate the accession belongs to the 
Government , but the internal ratification of the Agreement needs to be done by the National 
Parliament.  
- Description of judicial, arbitral or administrative tribunal or procedures  
105.  There are no judicial, arbitral or administrative courts or procedures to specifically deal with 
trade matters. Therefore , conflicts arising are settled by the judicial courts. The Public Prosecutor 
represents the State, exercises the penal action, and defends democratic legality, rights of the 
citizens  and other public interests in accordance with the Constitution and the Laws.  
106.  On the 20 December 2016, Council of Ministers approved a draft law on Arbitration, 
Mediation and Conciliation . The L aw creates alternative means of resolving trade disputes and is 
set to increase legal certainty and spe ed in resolving conflicts. The Law was designed based on the 
adopted model of International Arbitration Law (2006) recommended by the United Nations 
Commission on International Trade Law ( UNCIT RAL). This Law extends its scope beyond 
international arbitration to include mediation and conciliat ion. The draft law provides a WT/ACC/TLS/3  
 
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  comprehensive set of procedural rules upon which parties may agree for the conduct of arbitral 
proceedings arising out of their commercial disputes. The Law is now with the National Parliament 
for approval.  
107.  Timor -Leste is also  a member State of the International Centre for Settlement of Investment 
Disputes  (ICSID)  and part to the Convention on the Settlement of Investment Disputes between 
States and Nationals of Other States  (ICSID Convention) .  
IV. POLICIES AFFECTING  TRADE IN GOODS  
- Trading rights, registration requirements for engaging in importing  and exporting  
108.  Timor -Leste does not have any specific applicable regulations requiring persons to register in 
order to engage in import/export activities. However, natural and legal persons 
importing/exporting on a commercial basis are required to obtain an authorization issued by the 
Ministry of Commerce, Industry and Environment ( Article 2 (1)  of Law No. 24/2011  of 8 June  2011 
on Licensing of Commercial Activities).  
- Trade facilitation  
109.  Timor -Leste is engaged on promoting trade facilitation policies aimed at making 
international trade easier and more efficient. Timor -Leste 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 coordinate efforts and improve trade 
facilitation . 
110.   For Timor -Leste, trade facilitation is the way forward for a relatively small country, both in 
territory and population. Access to outside markets is essential to propel growth. Through trade 
facilitation , customs reform is under way. A modern Customs Code was recently approved by the 
Government (Decree -Law No.14/2017 of 5 April 2017), which requires the recruitment and 
training of an appropriate team of professionals to implement the code, supported by th e customs 
IT platform now being upgraded. Timor -Leste is developing a national single window, and 
ultimately be positioned as the link between an eventual single window of the Community of 
Portuguese Speaking Countries (CPLP) and the ASEAN single window, b ecoming a hub and 
platform that links a market of over 2.4 billion people.  
111.  Towards that end, among the Trade Facilitation Committee responsibilities are:  (i) to 
promote the analysis of procedures for import and export and to suggest the adoption 
harmonizat ion and simplified measures; (ii) to coordinate public consultations and put together 
recommendations aimed at facilitating the import or export; (iii) to support the Government to 
implement legislative, procedures and procedural reforms to facilitate impo rt and export;  and, (iv) 
to coordinate the work undertaken by all Government entities relate d to facilitation of import 
and export.  
112.  The Government of Timor -Leste intends to significantly modernize the country's customs 
framework, in the context of the ong oing efforts to modernize the economy and meet the WTO 
and ASEAN standards.   With the assistance of the International Finance Corporation (IFC), the 
Directorate General of Customs is working on a customs reform in order to improve  import/export 
process in Timor -Leste. The major goals of this reform are to reduce bureaucracy, increase 
transparency, and streamline the processes for import and export procedures.  In order to achieve 
these goals, the Government is considering implementing three main steps: (i) a  review of the 
customs legislative framework; (ii) the integration of the quarantine and customs services systems 
(including their computer systems); and, (iii) a public discussion in order to allow stakeholder 
engagement during the implementation phase (M inistries, customs brokers, major importers, 
etc.). Through the "Integrated Customs and Quarantine Services" system, in addition to the 
Database of Importers  which already exists in Timor -Leste, the Directorate General of Customs 
and the IFC aim to create an integrated system that reduces the bureaucratic burden and 
increases the exchange of information between all the relevant Government services. In other WT/ACC/TLS/3  
 
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  words, in the future, an importer/exporter will only need to interact with a single administrative 
authority throughout the entire import/export process.  
113.  The customs reform process started with the approval of the new Customs Code (Decree -
Law No. 14/2017 of 5  April 2017). The new ly approved Customs Code  reflects the political will of 
the Government of Timor -Leste in support of trade facilitation and is based on the Kyoto 
Convention of the World Customs Organization (WCO). It defines customs procedures, adopts 
customs risk management and promotes integrity and transparency as agreed upon by the Arusha 
Declaration. It covers, namely, the following issues: (i) customs control and supervision; (ii) areas 
subject to customs control; (iii) customs powers; (iv) custom s duties; and, (v) customs offenses.  
114.  To further detail the reform , the Government of Timor -Leste adopted the ASYCUDA WORLD 
software as the technological platform for all customs procedures and documentation, which allows 
the country to develop a National S ingle Window.  Customs procedures are moving from being 
lodged on paper forms to online systems as follows: (i) Direct Online Lodgement  by Traders: in the 
past, traders lodged applications for customs assessment on paper forms at the Office of the 
Directora te General of Customs. With the new ASYCUDA -World system, currently 100% of 
Customs Single Administrative Documents are lodged remotely by customs brokers acting on 
behalf of importers; With ASYCUDA -World they can lodge Single Administrative Document (SAD)  
and attach copies of supporting documents; (ii) Direct Online Lodgement  by shipping companies: 
in the past, shipping companies lodged a Manifest (list of cargo accompanied by carriage 
documents) in hard copy. In 2014, the Office of Customs moved to shippi ng companies that use 
electronic lodgement , and currently approximately 80% of manifests are lodged electronically. As 
such, major shipping companies voluntarily submit manifest electronically in ASYCUDA++. With 
ASYCUDA -World, it will be mandatory for all shipping agents to lodge manifest electronically, as 
required by the new Customs Code (Decree -Law No.  14/2017 of 5 April 2017) . 
115.  The Office of the Director General of Customs at the Ministry of Finance is working on 
improving the computer facilities and Int ernet 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 includes work at the following posts: (i) Dili Sea Port, Dili Airport, Baucau Sea Port, Sa lele 
– Suai Sea Port, Oecusse Sea Port; and (ii) Land customs posts: Suai -Salele, Oecusse, Maliana.  
116.  The Office of the Director General of Customs, with the assistance of the IFC, is seeking to 
improve the system for giving advance clearance of cargo. As pa rt of this project, IFC is also 
attempting to improve the capacity of the Office of Quarantine to operate a system for advance 
clearance of cargo. This project includes efforts to establish internal procedures for monitoring 
instances in which there is som e interruption to clearance subsequent to advance clearance having 
been granted.  
117.  Under the customs reform underway, Customs Services and Quarantine Services will be 
provided with information exchange mechanisms. Through the ASYCUDA -World, the Customs 
authorities will interface with Quarantine Services and other Government authorities. It is also 
expected that, once ASYCUDA -World is implemented and, all information regarding goods that 
require a license will be stored in the respective database. In the long run, it is anticipated that a 
single window will be implemented to expedite customs procedures and clearance.  
118.  The Office of the Director General for Customs has taken significant steps to prepare for a 
National Single Window in the new Customs Code (Decree -Law No.14/2017 of 5 April 2017)  and is 
working with the IFC on the necessary changes. The new Customs Code contains Title V, Chapter 
I, dealing with Electronic Records and Payments, based on United Nations Commission on 
International Trade Law (UNCIT RAL) model laws. Chapter IV contains the following provisions:  
(i) Article 79 allows the Customs Director General to require that specific documents or payments 
be transmitted in electronic form; (ii) Article 79 and 80 allows the National Director to autho rize 
certain persons to lodge documents in electronic form or to make payments electronically, and it 
provides the National Director the flexibility to modify the authorization in order to adapt to 
changes in technology; (iii) Article 82 allows for electro nic signatures, accompanied by a definition 
of  an electronic signature, which is based on the definition in UNCITRAL model laws; (iv) Article 
83 provides for the legal effect and enforceability of electronic documents and electronic 
signatures; (v) Articl e 84 provides for the legal effect of decisions made by the Office of Customs 
through an automated system; (vi) Article 85 prohibits unauthorized access to the Customs 
computer systems; (vii) Article 86 allows for the Director General to prescribe technica l WT/ACC/TLS/3  
 
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  requirements relating to electronic records, electronic signatures, and related control processes 
and procedures.  
119.  The new Customs Code (Decree -Law No.  14/2017 of 5 April 2017) would replace existing 
Laws, namely: (i) the existing 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) Decree Law No. 10/2004 of 19 May 2004 
on Tax and Customs Offences, (iv) Decree Law No. 15/2005 on Statute of Licensed Customs 
Broker s, and (v) Decree -Law No. 5/2007 of 13 August 2007, which approved the Regime of 
Customs and Customs Fund Emoluments . This new package of laws is now undergoing formal 
approval process, and is ex pected to be implemented in 2018.  
A. IMPORT  REGULATIONS  
- Characteristics of national tariff 
120.  Timor-Leste 's Laws provides for a flat import duty rate of 2.5% ad valorem  on all imported 
goods, regardless of the ir classification ( under the Taxes and Duties Act, Decree -Law 8/2008  of 30 
June 2008).  
121.  In accordance with the Customs Code of Timor -Leste  (Decree -Law No.14/2017, of 5 April) , 
the Customs Tariff of Timor -Leste compr ises the Nomenclature of Goods in accordance with the 
International Convention on the Harmonized Commodity Description and Coding System (HS) , of 
the World Customs Organization.  As such, since a flat import duty rate of 2.5% is applied, there 
are no other taxes, fees and charges set in relation to each tariff line. In addition, as  the flat rate 
applies to all goods, at present, Timor -Leste does not use customs classification for determining 
the applicable customs duty rate.  
122.  Currently, Timor -Leste 's Director ate General of Customs uses the Tariff Nomenclature in HS 
2002.  In 2014, the Office of Customs started working to change over to HS 2012. However, the 
Government of Timor -Leste has already drafted the 2017 HS, which will be approved immediately 
after the approval of the revised Customs Code.  
123.  As mentioned in Section  "Monetary and Fiscal Policy" of this Memorandum , it is the 
Government  of Timor -Leste 's intention that the ongoing Fiscal Reform will phase out import duties 
and rely exclusively on excise tax an d a value added tax , which will apply equally to imports and 
domestic production. The new Customs Code will only set forth rules and procedures for collecting 
the taxes upon importation.  
- Tariff quotas, tariff exemptions  
124.  Timor -Leste does not apply any tariff quotas and does not intend to apply any quantitative 
limits on the volumes of imports .  
125.  The Taxes and Duties Act provides for a list of goods that are exempted from import duty. 
This list includes exempt ions 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 22. 
126.  The Customs Code of Timor -Leste also provides for relief from import duties for goods, not 
being of a commercial character, and falling within one of the 11 categories as follow :  
1. Goods that const itute personal items and household effects imported by individuals 
transferring their residence, on a definitive basis, to the customs territory of Timor -Leste, 
provided that such goods have been in the custody of such individuals and that, where 
they are durable goods, have been utilised by the same individuals in their previous 
habitual residence for at least six months before the date on which they abandoned such 
residence in the third country of departure and that such goods are intended for use for 
the same purposes in their new habitual residence;  WT/ACC/TLS/3  
 
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  2. Movable goods, layettes and gifts imported on the occasion of a wedding, provided that 
they belong to one or to the two members of the couple that, as a consequence of the 
wedding, transfer their habitual re sidence to Timor -Leste;  
3. Personal goods acquired by succession;  
4. Shipments sent from private individuals to private individuals, of insignificant value, 
which are sent directly from a foreign country to an addressee in Timor -Leste;  
5. Goods contained in the personal luggage of travellers, provided that they are occasional 
importations and are devoid of commercial character, the limits of which are laid down in 
the Decree -Law No. 10/2003 of 22 July  2003.  
6. 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 are legally recognised as such and the importations are 
authorised by the Minister of Planning and Fi nance or his or her representative;  
7. Gifts received in the framework of international relations, provided that such gifts have 
been imported by people who have made an official visit to a foreign 63 country or by 
people who visit Timor -Leste and bring gift s for the authorities hosting them, or that such 
gifts are sent as a sign of friendship to a public authority, to a community, to a body, or 
to groups undertaking activities of public interest.  
8. Goods constituting gifts offered to Heads of State or to peop le 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 
established by the customs authorities.  
9. Machines and appara tuses imported solely for exhibitions and fairs, as well as materials 
intended to assembly or decorate provisional pavilions in fairs or exhibitions;  
10. Prospects, brochures, books, magazines, guides, maps or photographs intended to 
promote tourism;  
11. Publications from foreign Government s and international organisations intended for free 
distribution as well as documents sent free of charge to public services;  
127.  At present, there are no import duties imposed under the Customs Code, accordingly, these 
provisions are not operable.  
- Other duties and charges  
128.  Timor -Leste does not apply  any other duties and charges within the meaning of Article of 
Article II:1(b) of the GATT 1994.  
- Fees and charges for services rendere d 
129.  The Directorate General of Customs collects fees and charges for services rendered in 
accordance with (Decree -Law No.14/2017, of 5 April  2017), which establishes the regime of 
customs and customs fund emoluments, as provided in ANNEX 23.   
130.  The Government of Timor -Leste notes the rule in Article VIII:1 of the GATT 1994 that all 
fees and charges imposed on or in connection with importation or exportation shall be limited in 
amount to the approximate cost of services rendered and shall not represent an indirect protection 
to domestic goods or a taxation on imports or expor ts for fiscal purposes.  The Government of 
Timor -Leste acknowledges that the fee under Article 63 of the Customs Code for late clearance of 
goods may be inconsistent with Article VIII:1 of the GATT 1994, as it is calculated on an 
ad valorem basis, which may  not bear any rational relationship with the approximate cost of 
rendering the service. Therefore, the new Customs Code do es not include charges for 
late clearance.  
131.  Article 66 of Decree -Law No. 21/2003  of 31 December 2003 "On Quarantine and Sanitary 
Contro ls on Goods Imported and Exported " authorizes the Ministry of Agriculture and Fisheries and 
the Minister of Finance to issue a joint Ministerial Statute defining the service fees connected to 
the granting of import licenses, the issuance of certificates, o r any other fees for services.  WT/ACC/TLS/3  
 
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  - Quantitative import restrictions , including prohibitions, quotas and 
licensing  systems  
132.  Timor -Leste does not operate any q uantitative import restrictions.  
- Import licensing procedures  
133.  Timor-Leste does not operate a ny general system requiring importation licenses in order to 
import goods. However, legal and natural persons importing goods on a commercial basis are 
required to obtain an authorization issued by the Ministry of Commerce, Industry and 
Environment, under the Licensing of Commercial Activities Law. This legal framework applies to 
natural and legal persons , domestic of foreign , aimed at obtaining the licensing  for commercial 
activities regarding wholesale, retail, cumulative commerce, general commerce, imports, exports, 
services and other commercial activities not reg ulated by specific legi slation.  
134.  In practice, applications for business authorization are lodged with the Commercial 
Registration and Verification Service (SERVE) , which is authorized to issue an Authorization to 
Exercise Activity (AEA) for businesses engaging in the list of low -risk activities, and to link with the 
Ministry of Commerce, Industry and Environment, for medium -high risk activities and other line 
ministries to streamlined operational licenses.  C lassification of activities follows international 
standards adopted by th e United Nations Statistic Division  (ISIC). For many importing businesses 
obtaining a business authorization for low -risk activities is a fairly simple and quick process 
administered by SERVE, which takes from one to three weeks. If an importing business f alls 
outside the low -risk activities, SERVE will pass on the application for business authorization to the 
MCIA for further assessment. MECAE and the MCIE are currently working with IFC to develop rules 
and procedures to simplify the process for issuing co mmercial licenses for medium and high -risk 
activities.  
135.  The Office of the Directorate -General of Customs requires that: (i) natural and legal persons 
(i.e. individuals and companies) presenting goods in a commercial cargo for duty assessment must 
prove that  they have a Timor -Leste Taxpayer Identification Number (TIN); and, (ii) legal persons 
presenting goods for duty assessment should also prove that the entity is validly incorporated.  
This requirement applies to all individuals or companies that engages in import/export activities on 
commercial basis.   
136.  TINs are assigned to taxpayers by the National Directorate for Domestic Revenues (NDDR), 
a division of the Directorate General for Revenue within the Ministry of Finance. In the past, 
importers were required, when lodging a request for clearance of imported goods, to show the 
Directorate General of Customs a certified copy of the notification of their TIN. In practice, this 
required the importer to take the original notification of TIN and a copy thereof to the  Ministry for 
Commerce, Industry and Environment (MCIE), which, for a fee, certified that the copy was a true 
copy of the original. The Office of the Director General of Customs is working to streamline this 
process with the assistance of the IFC. It is en visaged that the Office of the Director General of 
Customs will have online access to the NDDR database of TINs, so that in the future the importer 
would only need to notify the Office of the Director General of Customs of the TIN and this Office 
would sea rch the online database and confirm the importer 's TIN. This is part of Timor -Leste's efforts 
to improve trade facilitation and establish a single window .  
- Customs valuation  
137.  The Customs Code  of Timor -Leste of 2017 provide s for customs valuation in Title VII, 
Chapter IV, comprising Articles 97 to 101 . The approach of the Customs Code  is to use the 
transaction value where ver possible , while making allowance for situations in which the invoiced 
price appears to be inauthentic. Where the value of an imported good as indicated in the invoice is 
lower than the fair market value of the same good, customs authorities may 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 for adjustments to 
the transaction value in line with Article 8 of the WTO Agreeme nt on Implementation of Article VII 
of the GATT 1994 (the WTO Agreement on Customs Valuation).  WT/ACC/TLS/3  
 
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  138.  Timor -Leste is taking steps so that its customs law and practice operate in a manner fully 
consistent with the WTO Agreement on Customs Valuation. Chapter IV of the new Customs Code 
contains rules on the "Value of Goods fo r Customs Purposes. " Article 98 of the  Customs Code 
provides that the customs value of imported goods shall be determined based on the principles set 
out in Schedule 1, which closely follows the rules in the WTO Agreement on Customs Valuation , 
including its interpretative notes.  The Directorate General of Customs is also taking some other 
steps to prepare its office to align its customs valuation with the WTO Agreement on Customs 
Valuation . With a ssistance of the IFC, it has designed a system for collecting information on the 
instances in which it queries the declared valuation. Customs is working on introducing an advance 
ruling system through which traders can 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.  
- Rules of origin  
139.  Timor -Leste does not apply rules of origin because its measures a ffecting imports do not 
discriminate between imported goods depending on their origin. The application of import duties 
under the Taxes and Duties Act involves the same rate of customs duty being applied to all 
products regardless of source, so the Directo rate General of Customs is able to determine the duty 
payable by determining the valuation of the goods and does not need to determine the 
classification of the goods nor determine the country of origin of the goods. Accordingly, the Taxes 
and Duties Act  does not contain any rules for determining the origin of goods.  
140.  The new Custo ms Code (Decree -Law No. 14/2017  of 5 April  2017, A rticles 94 to 96) 
describes general rules of classification of goods by country of origin and requirements for 
certification of or igin. Timor -Leste Government is keen to comply with the provisions of the WTO 
agreement on rules of origin, and is going to work, with support of technical assistance, to further 
develop domestic legal framework on that.  
- Other border measures  
141.  There are no other border measures in place.  
- Other customs f ormalities  
142.  Timor -Leste is a member of the World Customs Organization , since 19 September 2003. It  is 
not yet a party to th e International Convention on the Simplification and Harm onization of 
Customs Procedures , as  amended  on 3  February  2006  (Kyoto  Convention),  but  bases  its  
practice  on international standards  such as established by this Convention.  
- Pre-Shipment inspection  
143.  Timor -Leste does not operate a system for conducting pre -shipment inspections, and has no 
plans to do so, since it is putting in place a trade facilitation system in a ccordance with ASEAN 
standards, WTO and  WCO requirements, which are against pre -shipment inspection.   
- Application of i nternal taxes on imports  
144.  The existing  Tax Law (Taxes and Duties Act N o. 8/2008 of 30 June 2008) outlines the 
followi ng taxes for the country: (i) income tax, (ii) services tax, (iii) petroleum tax, (iv) import 
duty and sales tax, (v) excise t ax, and (vi) withholding tax . The following taxes that can be 
collected at the time of importation: (i) excise tax; (ii) sales tax; and, (iii) withholding tax.  
145.  Under the Taxes and Duties Act, excise tax is charged on a short list of products listed in 
Schedule II at a tax rate that may vary between  12% and 200%. The list include s: (i) alcoholic 
beverages, including beer  (1,90SUD/per liter), wine  (1,90SUD/per liter) and other similar 
beverages  (1,90SUD/per liter); (ii) ethylic alcohol (8,90SUD/per lit er); (iii) t obacco and tobacco 
related products  (19,90SUD/per kilogram ); (iv) g asoline, petroleum and other related petroleum 
products, (0,60SUD/per lit er); (v) l uxury cars  (35% of its value) ; (vi) a rms and munitions  (200% 
of its value) ; (vii) l ighters for smokers  (12% of its value) ; (viii) s moking pipes  (12% of its value) ; 
and (ix) r ecreational b oats and private aircrafts  (20% of its value) . WT/ACC/TLS/3  
 
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  146.  According to Section 10 (10.1 and 10.2) of the Taxes and Duties Act, excise tax is equally 
charged on both locally made products and imported products. For locally manufactured products, 
the excise tax is payable at the point at which the goods are removed from a registered 
manufacturer 's warehouse and, for imported goods, the excise tax is payable at the point at which 
the goods are entered for assessment of customs duties.  As per the Taxes and Duties Act, excise 
tax must be paid by th e importer on or before the fifteenth day of the month following the month 
of the relevant import. According to the Taxes and Duties Act, goods exported from Timor -Leste 
within 28 days after their production or import are not subject to excise tax due at i mport or 
production, as long as the taxpayer is liable to excise tax submits to the Central Bank of Timor -
Leste (CBTL) proof documen tation of the export of said goods. It is anticipated that the excise tax 
will be maintained in the ongoing Fiscal Reform.  
147.  Under the Taxes and Duties Act, sales tax is charged at the rates set out in Schedule III on 
sales of goods and services "by persons whose monthly turnover exceeds the threshold specified in 
Schedule III " (which is zero as the Schedule does not specify a th reshold). The Schedule specifies 
that the rate of sales tax is 2.5% in respect of imported taxable goods and 0% in respect of the 
sale of taxable goods or taxable services in Timor -Leste. Section 15 p rovides that it applies to: 
(i) taxable goods imported i nto Timor -Leste; (ii) taxable goods sold in Timor -Leste on or after the 
date to be specified by the National Parliament; or (iii) taxable services provided in Timor -Leste on 
or after the date to be specified by the National Parliament. As per the Taxes and  Duties Act, Sales 
Tax must be paid on or before the fifteenth day of the month following the month of the relevant 
import. Goods exempted from import duties under the Taxes and Duties Act, or subject to total or 
partial exemption under the Customs Code, a s specified in paragraphs 125 and 126, are exempt 
from sales tax under Section 16 of the Taxes and Duties Act.  
148.  The Government  of Timor -Leste is aware that the provisions on the sales tax imposed on 
imported products , but not on locally produced goods , is inconsistent with the national treatment 
requirement in Article III of the GATT 1994. It is anticipated that the ongoing Fiscal Reform will 
replace the sales tax with a value -added tax  (VAT)  which would be levied equally on both imported 
and locally produced goods. The Government expects a period of 5 years to effect the transition to 
the VAT regime . 
149.  Payments made by resident entities for goods acquired from non -resident suppliers are 
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 discrimination is also being revised under the new VAT 
regime, since it violates Article III of the GATT 1994 on non -discriminatory application of taxes.   
- Anti-dumping regime  
150.  Timor -Leste does not have any anti -dumping regime . However, the re is political will for the  
Government  of Timor -Leste to engage and comply with the provisions of the WTO agreements on 
anti-dumping  measures.  Legislation on trade remedy measures will be adopted following technical 
assistance support.  
- Countervailing duty regime  
151.  Timor -Leste does not have any countervailing duty regime. As mentioned above, the 
Government of Timor -Leste is willing to engage and comply with the provisions of the WTO 
agreements on countervailing duty measures.  
- Safeguard regime  
152.  Timor -Leste does not have any safeguard regime. Again, the Governme nt of Timor -Leste is 
ready to comply with the provisions of the WTO agreements on safeguard measures.  
B. EXPORT REGULATION  
- Customs tariff nomenclature, types of duties, duty rates, weighted average of rates  
153.  There are no laws imposing export duties and taxes. The Government  of Timor -Leste intends 
to maintain no duties and taxes on exports in the Fiscal Reform.  WT/ACC/TLS/3  
 
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  - Quantitativ e export restrictions , including prohibitions, quotas and licensing 
systems  
154.  There are no laws imposing quantitative export restrictions, prohibitions or quotas. This 
policy is expected to be maintained in the future, as the Government of Timor -Leste is working on 
a draft legislation aimed at promoting exports as part of the country 's investment policy.  
- Export licensing procedures  
155.  As mentioned above, Timor -Leste does not have any specific regulations in place requiring 
persons to register in order to engage in import/export activities. However, natural and legal 
persons importing/exporting on a commercial basis a re required to obtain an authorization issued 
by the Ministry of Commerce, Industry and Environment, according to the provisions of the 
Licensing of Commercial Activities Law (Decree -Law No.24/2011 of 8 June 2011) . 
- Other measures  
156.  There are no laws imposing minimum export prices, voluntary export restrictions, or orderly 
marketing arrangements.  
- Export financing, subsidy and promotion policies  
157.  There are currently  no export financing, subsidies, or promotion measures in force. These 
types of measures may be introduced in the future economic policy and statut es aimed at 
stimulating exports, based on WTO standards . If introduced, such measures would comply with the 
WTO Agreement on Subsidies and Countervailing Measures (the SCM Agreement).  
- Export performance requirements  
158.  The Government of Timor -Leste is working on an export promotion law and respective 
regulations to c omply with WTO standards.  
- Import duty drawback schemes  
159.  The new Customs Code of Timor -Leste (Decree -Law No.14/2017 of 5 April 2017  sets forth a 
customs duty drawback regime ( Section II, Articles 242 to 243 ) under which the customs charges 
paid when import ing raw materials, semi -finished products, components, and other separate parts 
and pieces intended for industrial transformation or incorporation into manufacturing, are refunded 
when the final product is exported .  
160.  Only duly authorized operators, as determined by the Director General of Customs, are 
allowed to import goods under this customs regime, based on the following criteria ((Decree -Law 
No.14/2017 of 5 April 2017, Article 32.1, Article 34.1(a - e)) on Customs Brokers, among others: 
(i) have valid customs broker license issued by the Director General of Customs; (ii) have a TIN 
number; (iii) prove that they have no outstanding debt, and; (iv) have not been convicted in any 
criminal proceeding or for t ax offences . Article 38 requires that licensed Customs Broker must 
submit bond with a minimum of US $10,000 and a maximum of US$150,000.  
C. INTERNAL  POLICIES AFFECTING  FOREIGN TRADE IN GOOD S 
- Industrial policy , including subsidy policies  
161.  The Government  of Timor -Leste aims to promote manufacturing as one of the five priority 
sectors of the economy. In the medium -term, manufacturing development will focus on the 
processing of agricultural products such as coffee, candlenut and forestry products. The 
Gover nment  is also encouraging investment in food processing and beverage manufacturing. The 
Government  of Timor -Leste is currently developing an Industrial Policy and action plan to promote 
manufacturing. The Industrial Policy will not include any subsidy or t ax incentives to promote 
manufacturing in particular sub -sectors .  WT/ACC/TLS/3  
 
- 32 - 
 
  - Technical barriers to t rade, standards and certifications  
162.  Currently there are no technical regulations and standar ds for Conformity Assessment 
Procedures (CAP) in place, such as testing, inspection or certification, either for domestic or 
imported goods.  However, the Government of Timor -Leste is interested in developing and 
approving such standards to ensure conformit y with WTO and ASEAN agreement on TBT.  
- Sanitary and phytosanitary measures  
163.  Timor -Leste 's sanitary and phytosanitary measures are regulated and applied on the basis of 
Decree -Law No. 21/2003 of 31 December "Quarantine and Sanitary Control on Goods Imported 
and Exported ". Timor -Leste is currently reviewing the law to develop an Action Plan for  the 
Implementation of WTO Agreement on the application of Sanitary and Phytosanitary Measures (the 
SPS Agreement). The IFC is currently providing technical assistance to the Government  of 
Timor -Leste to implement a project, which aims to refresh and updat e quarantine and customs 
law. The Government  of Timor -Leste is also in a n early stage of drafting a n action plan for 
implementation of obligations under the International Plant Protection Convention.  
164.  The Directorate of Quarantine Services, which is part o f the Ministry of Agriculture and 
Fisheries, administers the law, and the staff are empowered to supervise and at any time visit any 
area and buildings that are not a person 's residence, ship or aircraft to conduct phytosanitary and 
zoo health control.  
165.  The Ministry of Health is the Food Safety Authority of Timor -Leste, in charge of food safety 
measures.  
166.  Timor -Leste became a member of the International Office for Epizootics (IOE) , the World 
Organization for Animal Health (OIE)  on 16 November 2010. It is not  a member of the Codex 
Alimentarius Commission  but is eligible to become a member by virtue of being a member of the 
WHO and the FAO. It is not a party to the International Plant Protection Convention (IPPC) . 
167.  Timor -Leste claims freedom from foot and mouth disease, Bovine Spongiform 
Encephalopathy, rabies and Highly Pathogenic Avian Influenza (bird flu) and imposes restrictions 
against the import of animals or products that may introduce these diseases. Accordingly, for 
public health reasons the importation of the following is prohibited: (i) any proteins for animal 
feeding containing any meat powder, bone powder, blood powder, or fat from mammal tissues ; 
(ii) poultry powder for ruminant feeding;  (iii) a ny products from cows, sheep, or goats showing 
clinical signs of Spongiform Encephalopathy ; (iv) a ny 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) n on-transformed fat;  
168.  Prior to importing: (i) live animals; (ii) live plants; (iii) animal or vegetal products as 
specified by law; and (iv) any other good, or merchandise, animal, or vegetal organism as 
specified by law, importers must obtain an import lice nse from the Directorate of Quarantine 
Services.  Applications for import license are accompanied by a certificate of origin. The import 
license is subject to compliance with conditions and requirements including specification of origin, 
inspections, treatm ents, points of  entry and exit, proofs, analyses and tests, or isolation in the 
country of export in a quarantine facility . The import license shall also contain the import 
conditions specific to the case and the international standards and recommendations . 
169.  Import permits relating to live plants cannot be issued to private persons or organizations 
(i.e., persons other than Government  services, public institutions, and non -Government al 
organizations involved in projects to improve agriculture and forests app roved by the 
Government ).  Import permits also cannot be issued in respect of: (i) any items listed in CITES – 
Convention on International Trade in Endangered Species of Wild Fauna and Flora (Article 72); (ii) 
any item from or originating from a country or  areas where there is an ongoing occurrence of 
quarantine -related plagues or diseases (Article 72); (iii) exotic seeds included in a list to be 
approved by Ministerial Diploma (Article 82).  
170.  Import of the following species of seeds is subject to import aut horization: (a) rice; (b) corn; 
(c) coffee; (d) manioc; (e) bananas; (f) citrus fruits; (g) mango; (h) coconut; (i) phaseolus WT/ACC/TLS/3  
 
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  vulgaris (the common bean); (j) vigna spp.; (k) garlic; (l ) onion; (m) common potato; 
(n) pineapple; (o) avocado pear .  
171.  Timor -Leste currently imports more than 250 commodities from many different countries. 
Each import requires an import risk analysis to assess the risk posed by the import and to 
establish the need for import conditions to man age the risk. The conditions vary depending on 
both the commodity and the country of origin. Until these analyses are conducted, the conditions 
required for importation cannot be clarified. Currently, all plant imports are required to be 
accompanied by a phytosanitary certificate from the country of origin of the product which states 
that the products are free from, amongst other things, pests and diseases.  
172.  When an import license is obtained, the importer needs to present the following documents 
(and pay the relevant fees and any fines) before the Directorate of Quarantine Services will release 
the cargo:  (i) 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;  (ii) for live 
plants:  for plants and derivative products, the required documents are zoo or phytosanitary 
certification as specified by Article 26;  shipments must be accompanied by a phytosanitary 
certificate issued by the competent authority of the exporting countr y (Article 42(1)) and signed 
by a competent official conducting the respective inspection. For any live plants, it is also 
necessary to comply with a pre -export quarantine regime in the exporting country (Article 43(1)) 
and a post import quarantine regime.  
173.  Decree -Law No. 21/2003 of 31 December , prescribes further rules for applications for 
particular imports:  (i) for live animals: imported animals must be subject to a quarantine period of 
at least 14 days (Article 30) and a veterinary inspection (Article 31 ); (ii) for incubation eggs: the 
imports must be sourced from a country that has been approved by the Directorate of Quarantine 
Services (Article 33);  (iii) h en eggs for consumption: must be free of diseases or contaminations 
such as feather and feces (Art icle 34);  (iv) fresh fish for human consumption: shall not be subject 
to an import license (Article 35.1);  (v) d ried fish: upon arrival imports must be inspected for 
detection of insect infestation (Article 35.3);  (vi) c anned meat or hermetically sealed pa cks of 
meat not requiring refrigeration may be imported without restrictions (Article 36.1); (vii) but for 
any other import of fresh meat, requirements and conditions may be imposed if it weighs  less than 
5% of it meets  weight and does require refrigeratio n (Article 36.2) ; (viii) m ilk and milk products: 
must be derived from pasteurized milk (Article 37);  (ix) a nimal vaccines: prior authorization from 
the Directorate of Quarantine  (Article 38) for some vaccines, impo rt requires an import license; 
(x) animal skins and skin -made products: imported finished products are subject to veterinary 
inspection (Article 39);  (xi) s hipments of live plants and vegetal products: must be accompanied 
by a phytosanitary certificate issued by the competent authority of the expo rting country (Article 
42.1);  (xii) i mports of machinery, equipment, and used vehicles: are subject to sanita ry inspection 
(Article 44); and , (xiii) i mport of soil samples: subject to an import license (Article 45).  
174.  The Ministry of Agriculture and Fisherie s and the Minist ry of Finance may issue a joint 
ministerial statute defining service fees connected to the granting of import licenses, the issuance 
of certificates, or any other fees for services;  
175.  Decree -Law No. 1/2006 of 20 September 2006, establishes r ules and procedures to 
implement Decree -Law No.21/2003 of 31 December, on the exportation and importation of goods 
that subjects to quarantine control (inspection, isolation, observation, treatment, detention, 
prohibit to enter the country, destroy and rel ease). The decree -law also define the role and 
responsibility of the Quarantine Services and its staff as well as the procedure for the issuance of 
zoo and phytosanitary certification  
- Trade-related investment measures  
176.  Timor -Leste does not have trade -related investment measures in place.  In future, should 
such measures be introduced, they would be in compliance with the WTO Agreement on 
Trade -Related Investment Measures (the TRIMS Agreement) , as the Governm ent is willing to fully 
comply with WTO standards . WT/ACC/TLS/3  
 
- 34 - 
 
  - Free zones, special economic zones  
177.  The Customs Code of Timor -Leste provides for the possibility of the Gover nment of 
Timor -Leste to approve free zones be nefiting from customs exemption regimes. However, there 
are currently no free zones within  the territory of Timor -Leste.   
178.  Through Law No. 3/2014 of 18 June 2014 , the National Parliament approved the creation of 
the Oecusse -Ambeno  Special Administrative Region  and the Oecusse -Ambeno and Ataúro Social 
Market Economic Special Zone . Amongst other aspects, it is foreseen that a Free Trade Zone will 
be created within the Region (Article 5.1 (c)), and that the region shall benefit from i ts own special 
customs regime approved by Decree -Law (Article 32). The Statute of the Oecusse -Ambeno Special 
Administrative Region (approved by Decree -Law No. 5/2015, of 22 January 2015) mandates that a 
Free Trade Zone and an Industrial Customs Free Zone b e created within the Region. 
Notwithstanding the foregoing, the specific rules on the Free Trade Zone and Industrial Customs 
Free Zone are yet to be enacted.  
- Trade-related environmental policies  
179.  Timor -Leste has an environmental law (Decree -Law No.  26/2012 of 3 July 2012, Basic Law 
of the Environment), establishing the framework and guiding principles for conservation and 
protection of the environment and for the preservation and sustai nable use of natur al 
resources.  In 2016, a comprehensive legal framework was appro ved (Decree -Law No.5/2016 of 
16 March 2016, National System of Protected Areas), regarding the establishment of protected 
areas and 48 protected areas were declared in the whole country.  
- Mixing regulations  
180.  There are no mixing regulations in force in Timor -Leste.  
- Government -mandated counter -trade and barter  
181.  There are no government -mandated countertr ade or barter requirements or practices.  
- Trade agreements leading to country -specific quotas allocation  
182.  Timor -Leste does not have any such trade agreements in force.  
- Governme nt procurement  
183.  There are no major restrictions or limitations on foreign entities ' (natural or legal persons) 
participation in Timor -Leste procurement procedures. Government  procurement is governed by the 
Timor -Leste Public Procurement Framework, approved b y Decree -Law No. 10/2005, of 
21 November as amended by the Decree Law No. 24/2008 , of 23 July, the Decree -Law No.1/2010, 
of 18 February and by the Decree Law no. 15/2011 , of 30 March.  
184.  With respect to the type of Procurement Procedure that may be adopted , it is  as a general 
rule that, irrespective of the acquisition ( i.e. goods, services or works) an Open Tender Procedure 
must be followed if the expense to be incurred is in an amou nt in excess of US$100,000.  
An international open tender must 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) the acquisition of services or consultancy contracts in excess of 
US$200,000.  
185.  In terms of restrictions to the abovementioned general rules, the law  determines that a 
National Open Tender Procedure shall compulsorily be adopted in the event the procur ement 
concerns goods, works or services of an amount up to US$100,000. In this type of procedure, the 
participation of bidders is limited to Timor -Leste individuals a nd/or companies set up in 
Timor -Leste whose share capital is majority held by Timor -Leste citizens (at least 51%) or in which 
the said Timor -Leste individuals and/or companies may be regarded as preferential bidders. In 
addition, by Decree -Law No. 2/2010 , of 18 February 2010, the Government  approved a special 
procurement procedure for the award  of Public Works in an amount of up to US$250,000, in which WT/ACC/TLS/3  
 
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  only local companies based in the municipality  may apply.  This decree -law aimed supporting 
private sector development at the sub -district and encourage community participation in 
infrastructure de velopment in their area. Another limitation to the general principle of open and 
transparent competition may result from the adoption of direct award procedures. However, in 
these cases both national and foreign entities may benefit from this type of procu rement. 
Timor -Leste Public Procurement Framework  lists the rules and procedures that allow for this type 
of procedure to be adopted , however, this is an exceptional situation and to be adopted requires 
clear and detailed justification. These situation are,  among others: (i) emergency case following an 
unforeseen event which endangers public health and safety; (ii) where there are no tenders or no 
tenders which meet the criteria laid down in invitation to tender, or the candidates do not meet the 
requirement s for participation; (iii) when goods and services can only be supplied by a specific 
entity and do not exist on the market a reasonable or substitute  alternative;(iv) for the protection 
of patents, copyrights or other exclusive rights or intellectual prop erty rights.  The adoption of a 
direct award procedure can also be made on the basis of material criteria, in which case the choice 
is independent of the value of the respective contract. The adoption of a direct award procedure 
that is not duly grounded an d justified according to the law may be viewed as an administrative 
offence, pursuant to Article 3  of Decree -Law No. 11/2005 , of 21 November 2005, which sets forth 
the Legal Framework on Administrative Offences to the Public Procurement Legal Framework, an d 
states that any action or omission which is contrary to the rules established in the Timor -Leste 
Public Procurement Framework, in the special legal regimes covering that matter, and in the Legal 
Regime of Public Contracts  and in their additional standard s, shall constitute an 
administrative  offence.  
186.  Another  situation that is regarded as a limitation to the general principle of open and 
transparent competition results from the existence of an internal instruction from the Cabinet of 
the Prime -Minister ( Circular Note No. 003/GPM /III/2009 ), where it is stated that the Government  
should preferentially purchase Mitsubishi or Toyota vehicles, except when there is a specific reason 
that justifies the purchase of state vehicles of other brands . The logic of this transitory measure 
was the availability of spare -parts and maintenance services. Government -Decree No.1/2015 , on 
the Public Finance Procedure and Rules for Execution of State Budget 2015, Article 16.3 on Minor 
Capital, the purchase of motor vehicles , the s ame measure was reinforced, i.e.  such vehicle must 
follow the type and brand as specified on Circular Note No.003 / GPM / III / 2009.  The 
Government of Timor -Leste is aware of the limitation inherent to such measure and reiterates its 
willingness to have it revoked during accession negotiation process.   
187.  Apart from the exceptions in paragraphs  185-186, the Government  of Timor -Leste does not 
limit or restrict the participation of foreign nationals or entitie s in public tender procedures.   
- Regulation of trade in transit  
188.  Under the Timor -Leste 's Customs Code, goods in transit shall undergo control and customs 
inspection; their transportation shall take place under  a transit declaration, issued in triplicate. 
Originals of transit declarations shall be filed at the customs office of transhipment  and the 
respective duplicates and triplicates shall be handed over by the c arrier to the customs office 
of destination.  
- Agricultural policies  
(a) Imports  
189.  There are no specific policies affecting imports of agricultural products. Imported agricultural 
goods are only subject to the rules contained in the Quarantine  Law requiring sanitary import 
permits , as already mentioned .  
(b) Exports  
190.  There are also no export subsidy measures in place.  There are no laws, regulations, policies, 
or programs providing for export credit, export credit guarant ees, or insurance programs  WT/ACC/TLS/3  
 
- 36 - 
 
  (c) Export prohibitions and restrictions  
191.  Currently there are no export prohibition s or restriction s for agriculture products. This is 
expected to be maintained in the future a s part of Timor -Leste investment policy.  
(d) Export credits, export credit guarantees or insurance programmes  
192.  Timor -Leste does not have any export credits, export cre dit guarantees or 
insurance  programmes.   
(e) Internal policies  
193.  Timor -Leste does not have any policies on this matter.  
- Policies affecting foreign trade in other sectors  
194.  Timor -Leste does not have any policies affecting foreign trade in any other major sectors 
apart from oil and gas.  
V. TRADE -RELATED INTELLECTUAL  PROPERTY REGIME  
1. GENERAL  
195.  In acc ordance with the provisions of A rticle 165 of the CRDTL, the laws and regulations in 
force in Timor -Leste shall apply, insofar as they are not contrary to the Constitution and to the 
principles contained therein. This means that all Indones ian legislation on intellectual property 
prior to the restauration of the independence remains formally in force. But in practice it has not 
been effective since there is no adequate and indispensable institutional framework for its 
implementation (such as  an Intellectual Property Registration  Agency ). 
196.  Timor -Leste recognizes, though, the urgent need for protecting IP owners while doing 
business in country and is currently developing qualified personnel in IP matters in view of 
enacting IP laws in the near f uture. It is also committed to approving an Intellectual Property Law.  
Timor -Leste 's accession to the World Intellectual Property Organization (WIPO) is at its final stage 
now.  
197.  However, d espite the absence of legislation regulating protection and registra tion of IPRs in 
Timor -Leste, several statutes adopted by Timor -Leste address IP -related matters, as described in 
this section.  
198.  Thus, the Constitution provides that the State shall guarantee and protect the creation, 
production, and commercialization of lit erary, scientific and artistic work, including the legal 
protection of copyrights. The civil code sets forth that copyright is regulated by the law of the 
jurisdiction where the work is first published or, if it is not published by the author 's personal la w, 
without prejudice to special legislation, regulated by the law of the country of its creation.  
199.  Within t he Private Investment Law , an investment is defined as any direct or indirect 
investment in the country undertaken on behalf of and at the risk of th e 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 esta blishments, as well as any other form of intellectual property. 
Moreover, the  Law states that all investors shall be guaranteed the right to freely transfer funds 
abroad, which result from any investment in Timor -Leste, notably, income obtained from the 
transfer of intellectual property rights which constitute the investment.  The Law also grants that 
all investors shall be entitled to protect patents or utility models which they have registered as 
being the respective authors, as well as trademarks, logos,  names or insignias of establishments 
and other information, object of protection in terms of intellectual property, according to the 
applicable legislation of the Country. This provision indicates that legislation will be drafted in the 
future that provid es for more robust protections of IPRs in Timor -Leste.  WT/ACC/TLS/3  
 
- 37 - 
 
  - Intellectual property policy  
200.  Timor -Leste 's Government  is committed to develop a policy to support the creation of a 
comprehensive legal framework to ensure  effective legal protection f or intellectual property rights 
including the establishment of a n agency for administration and management o f 
IP-related  matters.  
- Responsible agencies for policy formulation and implementation  
201.  Timor -Leste does not have an IP office for administrati on and management of 
IP-related  legislation.  
- Membership of international intellectual prope rty conventions and of regional  or 
bilateral agreements  
202.  Timor -Leste is not a member of the World Intellectual Property Organization (WIPO), nor is 
it a party to the principal treaties in the field of  intellectual property.  As a non -party to the WIPO, 
Timor -Leste is not a party to the Madrid Agreement Concerning the International Registration of 
Marks, or to the Protocol Relating to the Madrid Agreement Concerning the International 
Registration of Mar ks. However, Timor -Leste 's Government  has already initiated its internal 
procedures to become a member of the WIPO , which is keen to prove technical s upport to the 
development of  a comprehensive legal framework to ensure effective legal protection for 
intellectual property rights, including trademarks, industrial design, copyrights, patents, and 
geographic indications . Asa consequence, the ratification of the following instruments will soon be 
considered: the Paris Convention for the Protection of Industria l Property; the Berne Convention 
for the Protection of Literary and Artistic Works; the Madrid Agreement Concerning the 
International Registration of Marks; and, the Protocol Relating to the Madrid Agreement 
Concerning the International Registration of Mar ks. Due to the existing strong political will to 
comply with WTO standards and guidelines, o n 10 January 2016, Timor -Leste Council of Ministers 
approved the required legal instruments of accession to the international convention establishing 
the WIPO. The proposal has also been approved by the National Parliament and is awaiting 
ratification by the President of the Republic.  
- Application of national and most favoured nation treatment to foreign nationals  
203.  The new Private Investment Law (already approved by the National Parliament ) sets for the 
general principle of equal treatment between national investors and foreign investors determining 
that all investors shall enjoy non -discriminatory treatment in relation to nationality in terms of 
rights and guarantees, except as regards to land ownership and to the minimum investment or re -
investment values. The new regime is aimed at promoting the attraction of FDI in the co untry by 
simplifying the rules for investment entry, strengthen the Investment promotion agency 
(TradeInvest Timor -Leste), and reinforce investment protection. The new bill also ensures  the 
equal treatment between nationals and foreign nationals.  
- Fees an d taxes  
204.  The revised  Private Investment Law grants the opportunity to investors with a  declaration of 
benefits to be awarded certain tax benefits and customs incentives. A declaration of benefits  can 
be granted to national and foreign investors. The new regime abolishes the fee both for nationals 
and foreign nationals.  
2. SUBSTANTIVE STANDARD S OF PROTECTION  
- Copyright and r elated rights  
205.  There are presently no laws and related substantive measures to ensure protection of copy 
rights and related rights.  WT/ACC/TLS/3  
 
- 38 - 
 
  - Trademarks , including service marks  
206.  There are presently no laws and related substantive measures to ensure protection of 
trademarks.  
- Geographical I ndications , including appellations of origin  
207.  There are presently no laws and related substantive measures to ensure protection of 
geographical indications.  
- Industrial d esigns  
208.  There are presently no laws and related substantive measures to ensure protecti on of 
industrial designs .  
- Patents  
209.  There are pres ently no laws and related substantive measures  to ensure protection 
of patents.  
- Plant variety protection  
210.  There are presently no laws and related substantive measures to ensure protection of plan 
variety protection . 
- Layout designs of integrated circuits  
211.  There are presently no laws and related substantive measures to ensure protection o f layout 
designs of integrated circuits.  
- Requirements on undisclosed information , including trade secrets and test data  
212.  No protection is currently provided. It is anticipated that legislation will be drafted in the 
future.  
- Other categories of intellectual property  
213.  There are presently no laws and related substantive measures regarding any other category 
of intellectual property.  
3. MEASURES  TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS  
214.  IPRs and copyright are not specifically protected in Timor -Leste due to the absence of 
specific statutes covering t hese matters. However, t o control the use of intell ectual property rights 
one can use judicial courts and the general civil proceedings  apply thereto.   
215.  With regard to IP, the common practice is to run advertisements in local newspapers 
(commonly called "Cautionary Notices ") in order to publicize the fact that a given IPR is exclusively 
owned by a certain company and that its unlawful use is forbidden. Despite the fact that there are 
no legal grounds for this practice, it remains the only procedure that interested parties can adopt 
in an attempt to overcome  the absence of IPR registration and protection in Timor -Leste.  
216.  The Cautionary Notice is a very simple advertisement that states the name and address of 
the IPR owner along with a description of the goods and services the IPR aims to protect. In case 
of a patent, an abstract is also included. In case of a design, it is common to include the relevant 
representation. Trademarks are generally displayed exactly as they are being used (word and/or 
device) with the corresponding list of goods or services. Accordi ng to local practice, Cautionary 
Notices are written in Tetum (one of Timor -Leste 's official languages) and in English.  WT/ACC/TLS/3  
 
- 39 - 
 
  217.  Businesses generally republish Cautionary Notices every two years so that, in case of 
infringement, IPR owners have a recent publication  to buttress their claim. Licenses, changes of 
name or address, and assignments may also be mentioned on republication so that IPR owners 
have the most up -to- date proof of ownership or license.  
218.  It may be said that publication of Cautionary Notices has bee n an effective and efficient way 
of preventing trademark, patent, and design infringements to date. Companies indicate that, in the 
event of IPR infringement, sending a "cease and desist letter " along with a copy of a local 
newspaper containing the Caution ary Notice advertisement may contribute to limiting 
counterfeited goods from entering or circulating in Timor -Leste, despite the non -existence of an IP 
law. Though counterfeiting occurs, the Government  is committed to seizing and destroying 
counterfeited g oods when they are reported.  
219.  There are already a number of examples of domestic statutes and multilateral treaties, to 
which Timor -Leste is a party, which address IP infringement. The Customs Code sets forth the 
application of prohibitions or restrictions with regard to goods presented to customs on grounds of 
morality and public security, health protection, protection of the lives of people and animals, 
preservation   of   vegetables, the   environment,  protection   of   national   artistic,   historic,   or 
archaeological property, or protection of industrial and commercial property.  
4. ENFORCEMENT  
220.  IPRs and copyright are not specifically protected in Timor -Leste due to the absence of 
specific statutes covering these matters. Al so, Timor -Leste does not participate in international 
IP agreements, foreign works may not qualify for copyright protection under Timor -Leste 's law.  
221.  With regard to IP, the common practice is to run advertisements in local newspapers 
(commonly called "Cautionary Notices ") in order to publicize the fact that a given IPR is exclusively 
owned by a certain company and that its unlawful use is forbidden. Despite the fact that there are 
no legal grounds for this practice, it remains the only procedure that interes ted parties can adopt 
in an attempt to overcome the absence of IPR registration and protection in Timor -Leste.  
222.  The Cautionary Notice is a very simple advertisement that states the name and address of 
the IPR owner along with a description of the goods and services the IPR aims to protect. In case 
of a patent, an abstract is also included. In case of a design, it is common to include the relevant 
representation. Trademarks are generally displayed exactly as they are being used (word and/or 
device) with the c orresponding list of goods or services. According to local practice, Cautionary 
Notices are written in Tetum (one of Timor -Leste 's official languages) and in English.  
223.  Businesses generally republish Cautionary Notices every two years so that, in case of 
infringement, IPR owners have a recent publication to buttress their claim. Licenses, changes of 
name or address, and assignments may also be mentioned on republication so that IPR owners 
have the most up -to- date proof of ownership or license.  
224.  It may be said  that publication of Cautionary Notices has been an effective and efficient way 
of preventing trademark, patent, and design infringements to date. Companies indicate that, in the 
event of IPR infringement, sending a "cease and desist letter " along with a c opy of a local 
newspaper containing the Cautionary Notice advertisement may contribute to limiting 
counterfeited goods from entering or circulating in Timor -Leste, des pite the non -existence of an 
IP law. Though counterfeiting occurs, the Government is comm itted to seizing and destroying 
counterfeited goods when they are reported.  
225.  There are already a number of examples of domestic statutes and multilateral treaties, to 
which Timor -Leste is a party, which address IP infringement. Article 59 of the Customs Cod e sets 
forth the application of prohibitions or restrictions with regard to goods presented to customs on 
grounds of morality and public security, health protection, protection of the lives of people and 
animals, preservation   of   vegetables, the   envir onment, protection   of   national   artistic, 
historic, or archaeological property, or protection of industrial and commercial property.  WT/ACC/TLS/3  
 
- 40 - 
 
  - Civil judicial procedures and remedies  
226.  Law No. 14/2011 of 12 September 2011 (Private Investment Law) includes IP in its scope. 
Reference is made in the preamble of this statute to the fact that all investors have the right to 
access courts in order to defend their legally protected rights and interests to protect in tellectual 
property, and to the respect for professional, banking, and commercial secrecy.  
227.  There is no civil judicial procedures and remedies spec ifically prepared to address IP -related 
rights.  
- Provisional measures  
228.  There are no provisional measures in place.  
- Any administrative procedures and remedies  
229.  Administrative procedures and remedies are not in place.  
- Any special border measures  
230.  Under Article 11 of Decree -Law No. 9/2004 of 19 May 2004, on Import, Storage and 
Circulation of Products Subject to Selective Excise Tax, companies shall issue a supporting 
document for every good cleared from a Customs Bonded Warehous e (Loading Receipt) that shall, 
among other information, include information on the trade name of the product. Executive Order 
No. 2002/12, on the trade of goods bearing the national symbols of Timor -Leste, also includes 
provisions on enforcement. Pursuant  to Article 3.1, failure to fully and immediately comply with 
this Order shall constitute an offense and shall result in its prompt enforcement by all lawful 
means available to the Timor -Leste Public Administration, including its law enforcement and border  
services.  
231.  Article 27 of the Convention on International Civil Aviation provides for exemption from 
seizure on patent claims. Under this Article, 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 shall not entail any 
seizure or detention of the aircraft or any claim against the owner or operator thereof or any other 
interfere nce therewith 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 is an infringement of any 
patent, design, or model duly granted or registered in the State wh ose territory is 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 shall in any case be requir ed in the State entered by 
such aircraft.  
- Criminal p rocedures  
232.  There are no criminal procedures in place.  
5. LAWS, DECREES, REGUL ATIONS AND OTHER LEG AL ACTS  
233.  There is no legal framework regulating the IP relate d rights in Timor -Leste.  
6. STATISTICAL D ATA ON APPLICATIONS FOR AND GRANTS OF IN TELLECTUAL 
PROPERTY RIGHTS, AS  WELL AS ANY STATISTI CAL DATA ON THEIR ENFORC EMENT  
234.  There are no statistic s available due to non -application of industrial property code.  WT/ACC/TLS/3  
 
- 41 - 
 
  VI. TRADE -RELATED SERVICES REG IME 
1. GENERAL  
235.  The Government of Timor -Leste recognize s the WTO General Agreement on Trade in 
Services (GATS) and has taken into account  the WTO Guide lines on Procedures for WTO Accession 
(WT/ACC/ 22/Rev.1 ) that addresses trade in services as well as the Technical Note by the WTO 
Secretariat in WT/ACC/5 on "Information to be provided on Policy Measures Affecting Trade in 
Services ". 
2. POLICIES AFFECTING T RADE IN SERVICES  
236.  Depending on the nature and the length of the activities to be carried out in Timor -Leste, 
foreigners and foreign entities  are able to perform activities  and provide services in the country 
provided that they establish a legal presence in Timor -Leste, either through the registration of 
permanent representation of a foreign entity as a branch or as a local affiliate  (see ANNEX 24). A 
non-resident entit y conduct s a business activity in Timor -Leste as a Permanent Establishment (PE) 
in the country if, inter alia : (i) it has a branch in Timor -Leste; (ii) it has any fixed place of business 
in Timor -Leste; (iii) it hires personnel to perform work in Timor -Leste for any  period exceeding 
sixty (60) days in aggregate within any given 12 -month period; or/and, (iv) it maintains an entity 
that could be deemed as a "dependent agent " in Timor -Leste.   
237.  A foreigner or foreign entity wishing to supply services  on a commercial basis  in Timor -Leste 
for more than sixty days in a given 12 -month period will be deemed as a PE in Timor -Leste: as 
such, it will have to incorporate a local company or register a local permanent representation 
(branch). Therefore, it would need to comply to thr ee types of requirements which apply also to 
local operating businesses: (i) obtaining a Taxpayer Identification Number (TIN); (ii) obtaining a 
business license or, when the activity requires a license or an authorization to exercise activi ty; 
and, (iii) r egistering the business entity with  the  Commercial  Registration  and  Verification  
Service (SERVE) and comply with continuing obligations to register particular facts or events that 
apply to each type of business entity.  
238.  Decree -Law No. 24/2011 of 8 Ju ly 2011, prohibits commercial activities including wholesale, 
retail, general commerce, importing and exporting of goods, and supply of services as principal or 
commercial agent without authorization. In addition, some more specialized legislation prohibit s 
carrying on of certain businesses without a special license issued by regulatory agencies, including, 
for example, the carrying on of a business supplying financial services that is required to be 
licensed by the Central Bank of Timor -Leste (CBTL). Other  important areas where regulatory 
licensing is required include, amongst others, oil & gas upstream and downstream activities 
(subject to licensing/authorization by the National Petroleum Authority), and mining.  
239.  Carrying on a commercial activity without th e appropriate authorization is a n offence a 
penalty between US$ 1,000 an d US$ 10,000  can be imposed to those who does not have it . Persons 
who are not citizens of Timor -Leste are prohibited from carrying on some commercial activities and 
so cannot obtain a l icense to carry on business in the reserved categori es. Decree -Law 
No. 24/2011 of 8 July  2011, specifically reserves commercial activities in traditional markets or 
street vending  for citizens.  
240.  Timor -Leste's measures affecting movement of natural persons are contained in ANNEX 25.  
241.  Foreign suppliers of services can lease premises but cannot own land in Timor -Leste. The 
Constitution of the Democratic Republic of Timor -Leste provides in Article 54.4 that only national 
citizens have the right to ownership of land. As such, currently, only national citizens have the 
right to private ownership of land in Timor -Leste (urban or  farm land). Also, under Article 2 of the 
Legal Framework on Real Estate Property (Law No. 1/2003 of 10 March 2003), landowners can be 
either national citizens or the State. With respect to national legal persons, it has been understood 
by the local author ities that they are entities incorporated under the laws of Timor -Leste and fully 
owned by national citizens. This means that only Timor -Leste companies 100% owned by Timor -
Leste nationals would be entitled to purchase and own land in Timor -Leste.  For oth er relevant 
sources of laws regarding interests in real estate, see ANNEX 26. WT/ACC/TLS/3  
 
- 42 - 
 
  242.  For information on regulation in specific services sectors / sub -sectors, please see  from 
ANNEX 27(A)  to ANNEX 27(M) . Timor -Leste has its own list of Economic Activities Classifications 
(EAC) publi shed as an annex to Decree -Law No. 35/2012 of 18 July 2012, creating SERVE. For 
purposes of this Memorandum, the United Nations (UN) Central Product Classification as recorded 
in document MTN.GNS/W/120 of 10 July 1991 is employed.  
243.  Timor -Leste has no legislation on distribution services.  
- Government  departments, agencies, professional associations or other bodies  with 
authority or a role relevant to the conduct of service activities  
244.  There a number of Government  ministries, agencies and  professional associations that play 
a role in the conduct of services activities. The principal Government al bodies are:  
 The Ministry of Commerce, Industry and Environment;  
 Ministry of Finance;  
 Ministry of Public Works, Transports, and Communication ; 
 Ministry of Agriculture and Fisheries;  
 SERVE, IP ; 
 Ministry of Health;  
- Judicial, arbitral or administrative tribunals or procedures providing for the  review 
of, or remedies in relation to, administrative decisions affecting trade in  services  
245.  Such procedures are the sam e as those already described in Section "Description of judicial, 
arbitral or administrative tribunal or procedures" . 
- Provisions, including those in internationa l agreements, concerning qualification 
requirements and procedures, technical standards and licensing and/or  
registration requirements for the supply of services  
246.  There is no technical standard regime, national standard organization, national testing 
organization or conformity assessment body  that issue product certificate s. Should Timo r-Leste 
implement such measures in the future, it will comply  with the WTO requirement s. 
- Provisions governing the existence and operation of monopolies or exclusive  
service suppliers  
247.  The general policy is to promote open competition in all sectors, including for services. 
However, monopoly  in electricity distribution and water supply still exist. Moreove r, for social 
reasons, there is also a public funeral transportation services provided by the State given the lack 
of cover age and price of private services.  
- Provisions relating to safeguard measures as they apply to trade in services  
248.  Timor -Leste does not have any safeguard measures relating to trade in services .  
- Provisions relating to international transfers and payments for current  
transactions of services  
249.  Such provision is described in paragraph 42. 
- Provisions relating to capital transactions affecting the supply of services  
250.  There is no provision related to the capital transaction. The  capital market is not 
existing  yet.  WT/ACC/TLS/3  
 
- 43 - 
 
  - Provisions governing the procurement by Government al agencies of services  
251.  The provisions governing the procurement by Government al agencies of services are the 
same as those governing the procurement of good s.  
- Provisions concerning any form of aid, grant, domestic subsidy, tax incentive or 
promotion scheme affecting trade in services  
252.  Timor -Leste only grants tax concessions, in the private inv estment law, as described in  
Section II.2.(d) paragraph s 47 and 157.  
3. MARKET ACCESS AND NA TIONAL TREATMENT  
- Limitations on the number of Service S uppliers  
253.  There are no such limitations.  
- Limitations on the total value of service transactions or assets  
254.  There are no such limitations.  
- Limitations on the total number of service operations or on the total quantity of 
service output  
255.  There are no such l imitations.  
- Limitations on the total number of natural persons that may be employed in 
a particular service sector  
256.  Investors or companies may employ foreign personnel or experts. The Government  policy 
requires that all major business ensure that a minimum percentage of the value of labour in all 
major projects in Timor -Leste is d edicated to the employment or accredited training citizens of 
Timor -Leste. There is a list of occupations that cannot be performed by foreign nationals, 
as follow:  
 Servant in a bar, restaurant, hotel and shops;  
 Private and public drivers;  
 Receptionist  
 Housekeeper, except individuals qualified to work with vulnerable people  or child  
 Hairdresser, except foreign na tionals with specific training  
 Security Guard  
 Clerk 
 Warehouse supervisor  
 Assistant in any job  
 Photocopier  work  
 Gardener  
 Street vendor  
- Restrictions on, or requirements on  specific types of legal entity through which a  
service may be supplied  
257.  In the telecommunication secto r specific regulations apply, that require 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.  
258.  In the a ir transport service can only be provided by legal persons incorporated under the 
laws of Timor -Leste.  WT/ACC/TLS/3  
 
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  259.  In the construction sector, the certification and registration of civil construction and technical 
consulting companies are mandatory for them to be abl e to bid for public procurement tenders.   
260.  Legal persons in the business of social games, slot machines, and traditional games shall be 
obtain a prior authorization to operate and shall be legally incor porated under the laws of 
Timor -Leste and i) shall pro ve to have good reputation and demonstrated technical, economic and 
financial capacity to develop this activity; ii) shall apply for a concession to develop this activity, 
and may be awarded up to a limit of 2 in the national territory; iii) shall have a m inimum paid -up 
capital of US$400,000 as well as a banking account balance no less than US$250,000.  
261.  Companies working in the private security services shall have a CEO with Timor -Leste 
nationality;  
262.  Commercial banks operating in Timor -Leste shall obtain a license  from the central bank have 
a minimum paid -up capital of US$ 2,000.00. Insurance companies are also subject to license , shall 
be a limited liability enterprise /joint stock company  and shall have paid -up capital of more than 
US$500,000. 00.  
- Limita tions on the participation of foreign capital  
263.  The existing limitation on the participation of foreign capital are the following:  
 In the press services sector /media,  foreign capital is limi ted up to 30% of the share capital;  
 Access to road public carrier business is only available to Timor -Leste citizens or to a legal 
persons with over 50% of share capital is controlled by Timor -Leste citizens;  
 Artisanal/traditional fishing  permits are only granted to Timor -Leste citizens or national 
legal persons;  
 Commercial activities in traditional markets or street vending is reserved for citizens of 
Timor -Leste . 
- Measures providing for less than the treatment accorded to national serv ices or  
service suppliers  
264.  Land ownership is limited to the citizens of Timor -Leste as established under the 
Constitution. Foreign persons condu cting legal activities in Timor -Leste may lease land up to 
50 years. Private investors, under the private investment law are entitled to lease land 50 years, 
which may be extended up to 100 years.  
265.  There are some activities that are reserved to nationals o nly, such as:  
- Providing universal postal service an d public communication services;   
- Development and exploration of national parks, marine or land reserves or other areas 
protected;  
4. MOST  FAVO URED NATION TREATMENT  
266.  There are no existing measures inconsistent  with the MFN treatment.  
VII. TRANSPARENCY  
- Public ation  of information on trade  
267.  Publication for legal instruments and a  legal statute is only effective upon publication. Legal 
instruments are also publ ished online on the website of " Jornal da República ", which is part of the 
website of the Ministry of Justice at  www.mj.gov.tl .  Most  of the legal instruments are made 
available by provision of a link to the relevant issue of "Jornal da República".  
268.  On the website of "Jornal da República" , there is also a link to the website of the Office of 
Legal Affairs of the United Nations Integrated Mission in Timor -Leste (UNMIT). Timor -Leste Legal 
Reference Material is available at http://www.jornal.gov.tl/lawsTL/ index -e.htm . This website WT/ACC/TLS/3  
 
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  includes t he UNTAET Regulations enacted between October 1999 and May 2002. This website also 
includes DRTL Legislation from independence in May 2002 until the UN ceased to update the 
website in mid -2012. The RDTL Legislation website is available at 
(http://www.jornal.gov.tl/lawsTL/ -RDTL -Law/index -e.htm ). This includes indices in both 
Portuguese and English to each type of legal instrument. It also includes links to a copy of the 
official instrument  in Portuguese and, in some cases, links to unofficial English translations.  
269.  The Ministry of Justice has established a translation office to translate laws from Portuguese 
into Tetum. In addition, the website of the Government of Timor -Leste  
(http://timor -leste.gov.tl/?lang=en ) contains a selection of legislation in 6 categories. Some of the 
websites of the individual Ministries, and the CBTL website,  also contain links to 
relevant  legislation.  
270.  The Governm ent website (http://timor -leste.gov.tl/?lang=en ) is regularly updated and 
provides information on the main policy decision taken weekly in the Council of Ministers, in three 
languages, Portuguese, Tetum an d English.   
- Notifications  
271.  The Government of Timor -Leste recognizes the importance of notification requirements 
under all WTO Agreements.  Thus, it aspires to submit all initial notifications required by all the 
WTO Agreement s within six months from the membership date.  Any laws, regulations, or other 
measures subsequently enacted by Timor -Leste, and which are required to be notified pursuant to 
the WTO Agreement, would also be notified in a time and manner consistent with WT O 
requirements.  
VIII.  TRADE AGREEMENTS  
- Bilateral or pluri lateral agreements relating to foreign trade in goods and trade  
in services  
272.  Timor -Leste does not have a bilateral or multilateral trade agreement in goods or services 
with other country or countries . Timor -Leste is not a party to any customs union or free trade 
agreement or to any other bilateral or mult ilateral agreements relating to trade, investment or 
intellect ual property.  
- Economic integration, customs union and free -trade area agreements  
273.  Timor -Leste is not a party to  a regional trade agreement. However, it recognizes the 
importance of regional cooperation . It is underta king the necessary  institutional and legal reforms 
to support its accession to ASEAN. In 2011, Timor -Leste has officially applied to become a member 
of ASEAN, and is currently implementing reform s to comply with the ASEAN trade in goods and 
services agreement , towards full compliance with the ASEAN Economic Community.  
274.  Timor -Leste is a party to the following bilateral and mul tilateral trade agr eements: 
(i) Agreement between the Democratic Republic of Timor -Leste and the Republic of Indonesia on 
Traditional Border Crossings and Regulated Markets, signed in Jakarta, Indonesia, on 11 June 
2003 (this Agreement allows trans -border movement of some go ods and natural persons through 
the border areas); 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.    
275.  Timor -Leste benefits from the following unilaterally granted preferential trade arrangements 
in a number of countries for its exports:  
- US Scheme of General System of Preferences;  
- EU Generalized System of Preferences;  
- Australia 's Gene ral System of Preferences; and  
- New Zealand 's General System of Preferences.   
 WT/ACC/TLS/3  
 
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  276.  Benefits under these schemes depend on unilateral decisions of the countries as to whether 
Timor -Leste is eligible for the preference, which products are eligible, and the rules of origin that 
apply to determine w hether a product is treated as originating from Timor -Leste.  
- Labour  markets integration agreements  
277.  Timor -Leste does not belong to any labour market integration agreement.  
- Multilateral economic cooperation, membership in the multilateral economic 
organizations, trade -related programs of other multilateral organizations  
278.  Timor -Leste is a member of the following multilateral organizations and participates in the 
following trade -related programs:  
- Asian Development Bank (ADB);  
- Community of Portuguese Speaking 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);  
- International 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  Organization  for  Animal  Health (OIE); and, 
- World Tourism Organization . 
 
 
_______________  
 
 
 
 
 
  WT/ACC/TLS/3  
 
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  ANNEXES  
ANNEX 1  
Gross Domestic Product by Sector, 2006  - 2014, US$ million at constant 2010 prices  
 2006  2007  2008  2009  2010  2011  2012  2013  2014  
Oil 3,562  3,477  3,882  3,476  3,333  3,708  3,740  3,092  1,859  
Other mining 2  2  2  1  0  1  1  1  1 
Ag, forest & fish 187 181 181 196 191 158 200 200 195 
Manufacturing  14 13 13 12 11 10 9 9 10 
Construction 21  40  97  145  155  237  228  205  238 
Trade & 
accommodation 132 143 162 179 187 204 209 197 203 
Information and 
Communications 
Technology (ICT) 13 17 21 32 45 60 72 57 38 
Finance 6  5  4  4  3  7  7  8  9 
Real esta te 70  78  74  77  84  87  100  91  92 
Professional services 5 6 7 7 25 27 30 30 38 
Public services 92  104  110  146  164  186  212  244  279 
Education, human 
health and social 
works  7 7 7 8 10 2 5 5 6 
Other services  51  55  66  73  66  63  64  60  55 
GDP 4,156  4,139  4,639  4,331  4,274  4,727  4,818  4,201  3,034  
Non-oil GDP 594 662 756 854 941 1,019  1,078  1,109  1,175  
Source:  Ministry of Finance Timor -Leste National Accounts 2000 -2014, 19 -23. 
Note: Manufacturing includes production of electricity, gas, water, and sewerage.  
 
  WT/ACC/TLS/3  
 
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  ANNEX 2 
Share of Workforce by Sector, 2001, 2007, 2010 and 2013 ( %) 
 2001  2007  2010  2013  
Agriculture  81.6 84.3 65.3 40.5 
Industry  3.9 0.9 2.8 12.7 
Services  11.2 9.9 31.7 45.1 
Other  3.2 5.0 0.3 1.7 
Number    311,316   
Source : 2001 and 2007 LSMS household surveys; 2010 population and housing census; 2013 Timor -Leste 
Labor Force Survey.  
Note:  The methodologies behind the last two columns differ; in particular, subsistence food producers 
(estimated number 178,900) were  excluded from the 2013 survey.  
  WT/ACC/TLS/3  
 
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  ANNEX 3  
Investor Activity Regulation under the Private Investment Law  
The Issue of Investor 's Certificates and Area Exclusions from the Law  
The Private Investment Law is the main statute providing for a set of rules governing both internal 
(resident Timorese investors) and external (foreign investors or non -resident Timorese investors) 
investment and reinvestment o perations. However, note that to date the Private Investment  
regime has been optional, i.e., the applicability of its rules is not mandatory.  
The Private Investment Law does not apply to:  
1.  Prospecting, exploration and production of oil and gas and min ing a ctivities 
 (Article 2.2(a));  
2.  Selling of goods and equipment to  end consumers (Article 2.2(b));  and 
3.  Marketing of real estate (Article 2.2(c)).  
The Private Investment Law provides at Article 30 that a Decree -Law shall establish a specialized  
investment age ncy. This agency is currently called "TradeInvest Timor -Leste, " and was established 
by Decree -Law No. 41/2015 of 30 December 2015. Trade Invest Timor -Leste is currently the entity 
responsible for issuing Investor Certificates (Article 28.1 ), which set out the terms subject to which 
the investors are awarded certain tax benefits and customs incentives, and are also subject to 
certain obligations. Investor Certificates can be granted to national and foreign investors. 
Investors must pay a fee to the Ministry of Finance prior to submitting a request to TradeIvnvest 
for an Investor Certificate, which amounts to US$ 500 for nationals and US$ 2,000 for foreign 
investors (Article 32). Article 31 requires the government to grant an Investor Certificate to all 
invest ment projects "authorized under the terms of this Law. " As mentioned above, this provision 
and the entire Law do not apply to investments in the oil, gas or mineral resources sector, retail 
sale of goods, or real estate marketing sector. Outside the above sectors, investment projects may 
be "authorized in any sector of economic activity in the Country " with the exception of:  
1.  "All activities which are considered a crime or breach of order under the scope 
  of applicable law in Timor -Leste " (Article 8.2(a));  
2.  "[A]ll activities which, given their location, may adversely interfere in the aim or 
  objectives defined for protected areas, as set out in the applicable   
  environmental legislation " (Article 8.2(b));  
3.  "[A]ll activities related to the distribution or  sale of arms or ammunition "  
  (Article  8.2(c)); and , 
4.  "[A]ll activities, the development or management of which are reserved for the 
  State or for certain types of investors " (Article 8.2(d)).  
- Tax Treatment of Holders of Investment Certificates  
Any ta x benefits or customs incentives awarded under the terms of a declaration of benefits must 
be within the limits on tax benefits set out in Article 21 and the limits on customs incentives set 
out in Article 22.  
- The tax benefits and customs incentives that may be allowed under an Investor 's 
Certificate are the following:  
1.  Exemptions from income tax - an exemption may be given for up to 100% of 
  income tax that the investor might otherwise be liable for (Article 21.1).  
2.  Exemption from  sales  tax -  an exemption from up to 100% of the sales tax 
  that  would otherwise be payable on the purchase of all capital goods and  
  equipment used in the course of the investment project (Article 21.3);  WT/ACC/TLS/3  
 
- 50 - 
 
  3.  Exemption from service tax – an exemption from up to 100% of the service tax 
  that would otherwise be payable by an investor in respect of the provision of 
  services (Article 21.5);  and, 
4.  Exemption from up to 100% of customs import duty on all capital goods and 
  equipment used in t he course of the investment project (Article 22.1).  
These exemptions may be given under the Investor Certificate for a period of 5 years. However, 
the exemptions may run for 8 years if the investment is to be totally or partially made  in a Rural 
Area, or for 10 years if the investment is to be totally or partially in a Peripheral Area (see Articles 
21.1(b) & (c), 21.3 (b) & (c), 21.5(b) & (c), 22.1(b) & (c), and definitions in Article 9).  
In addition to those exemptions, the Law provid es that deductions will be allowed in the calculation 
of taxable income for two types of expenditures:  
1. Article 21.2 provides for investors to count as deductions in calculating their 
  taxable income any expenses incurred for construction and repair of roa d access 
  not associated with the business activities that benefit workers and populations 
  in those areas;  
2. Article 25 provides for investors to count as deductions in calculating their  
  taxable income any expenses incurred in "vocational training of p ermanent 
  Timorese workers undertaken under the terms set out in the empowerment plan 
  specified in the Investor Certificate. " 
- Obligations on Investors  
Investors are obliged to comply with any applicable legislation in Timor -Leste (for example 
legislat ion regarding environmental protection or health and safety at the workplace, two examples 
specifically mentioned in Article 27.2(c)). Article 28.2(a) sets out a non -exhaustive list of the type 
of obligations that might be incorporated into an Investor Cer tificate.  
- Obligations Owed to Investors  
Chapter III of the Law sets out some rights and guarantees of the investors. Article 10 establishes 
non-discriminatory treatment of the investors, notably in relation to nationality, except with regard 
to land own ership (as defined by the constitution) and eligibility to access the benefits and 
incentives (to be defined under regulations). Regarding land ownership, the Timorese state 
undertakes in the law not to carry out nationalizations or policies that deliberat ely harm the 
property of foreign investors (Article 15) and to provide fair compensation in the event of 
expropriation (Article 15).  
Article 10 provides that all investors shall enjoy non -discriminatory treatment in relation to 
nationality in terms of righ ts and guarantees, except as regards land ownership.  
These provisions would oblige TradeInvest Timor -Leste not to discriminate arbitrarily against 
foreign investors compared to local investors or against foreign investors compared to certain 
favored foreig n investors. They are in effect national treatment and most favored nation 
constraints. Therefore, the existing provisions of the Private Investment Law enable Timor -Leste to 
comply with the most favored nation rule and national treatment rule contained in  the GATS, and 
applicable rules under the AFAS.   WT/ACC/TLS/3  
 
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  ANNEX 4 
Measures Affecting Foreign Investment  
The relevant  laws regulating inward foreign investment are:  
1.  Law No. 44/III (3a), of 25 April  2017 (hereinafter, the "Private Investment 
  Law"); and  
2.  Decree -Law No. 41/2015 of 30 December 2015, which established an entity 
  called "Trade Invest Timor -Leste " as an Investment Agency with the aim of 
  promoting, facilitating , coordinating and supervising private investment and 
  reinvestment, as well as Ti mor-Leste 's exports.  
The Private Investment Law sets forth the rights, guarantees, benefits, and incentives granted to 
investors pursuant to this law. These rights, however, do not limit the regimes set out in 
international agreements and treaties ratified  by Timor -Leste. Also, Article 51 establishes that any 
such international agreements prevail over the rules of the Private Investment Law if the rules of 
the latter are not in line with such international agreements.  
In order to ensure that the private inv estment regime is aligned with international best practices 
as well as with the government reforms in the fiscal area, the new Private I nvestment Law was 
prepared in order to promote liberalization, facilitation, promotion and protection of investments 
and investors, and is aimed at opening the country to increase both foreign direct investment and 
national investment. The new bill is guided by the following ideas:  
 Investment liberalization – it abolishes the need for investments to be pre authorized 
 by the government and lower the entry and post -entry barriers. The new private 
 investment law mandates the government to publish a "negative list of investment". 
 The negative list is informational in nature and provides a concise summary for 
 investors of th e investment restrictions in the country. In general, Timor -Leste has 
 few restricted activities or sectors that are reserve d for domestic investors or 
 the state.  
 Investment protection – the law establishes a series of guarantees for investors and 
 investments and provides for the investors to be treated in a non -discriminatory and 
 fair manner. The proposal provides the following protections: non -discrimination, fair 
 and equitable treatment, prohibition against expropriations without compensation,
  protection and security and free transfer of funds, ensures dispute settlement 
 mechanism both by using domestic courts and international arbitration, including 
 International Centre for Settlement and Investment Disputes, as well as conciliation, 
 mediat ion and mediation.  
Facilitation and Promotion of investment:  The Government restructured the Investment Promotion 
Agency in 2015. Following on from the restructuring, TradeInvest and MECAE together developed 
an Investment Reform Map in order to define th e pathway to increase levels of investment by 
exploring the main sectors that can potentially play a key role in att racting FDI into the country 
and to promote the expansion of domestic investment.   
  WT/ACC/TLS/3  
 
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  ANNEX 5 
Balance of Payments, 2007  - 2015, US$ millions  
 2007  2008  2009  2010  2011  2012  2013  2014  2015  
1. Current account 
balance 1,167  2,042  1,284  1,678  2,352  2,736  2,390  1,093  239 
Non-oil exports, 
fob 7 14 15 27 29 33 18 16 18 
Imports, fob -176 -333 -338 -307 -402 -672 -637 -618 -653 
Services trade, 
net -228 -599 -774 -961 -1,415  -920 -431 -594 580 
Income account 
balance 1,331  2,491  1,930  2,435  3,577  3,862  3,327  2,134  1,290  
Petroleum 
revenue 1,258  2,284  1,660  2,110  3,241  3,559  3,050  1,817  979 
Current 
transfers, net 233 469 451 484 533 432 114 156 164 
2. Capital & 
financial acc ount 32 17 27 31 26 23 20 14 29 
FDI, net 9 40 50 3 80 26 37 37 30 
3. Errors & 
omissions 1 -28 1 17 -48 -94 -43 -105 -77 
BOP (1+2+3) 147 -20 39 156 55 422 -197 -376 220 
Reserve asse ts (at 
year-end) 230 210 250 406 462 884 687 311 438 
Source:  Government  of Timor -Leste; last line from IMF.  
Note:  change  in foreign reserves = BOP; *public foreign assets (at year -end) include Petroleum Fund 
assets plus Central Bank of Timor -Leste (CBTL) foreign reserves.  
  
  WT/ACC/TLS/3  
 
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Timor -Leste Trade in Goods and Services (2010 - 2015); US $ thousands  
 2010  2011  2012  2013  2014  2015  2016 * 2017 * 2018 * 2019 * 2020 * 
Total Export 
of goods and 
services  2,717.63  2,913.87  3,233.33  2,805.07  2,066.63  2,345.95  2,277.95  2,211.92  2,147.81  2,085.55  2,025.10  
Total Import 
of goods and 
services  1,837.00  1,882.70  1,921.90  1,664.40  1,991.40  1,717.40  1,694.43  1,671.77  1,649.41  1,627.35  1,605.59  
Total Trade  4,554.63  4,796.57  5,5155.23  4,469.47  4,058 .03 4,063.35  3,972.38  3,883.69 3,797.22  3,712.90  3,630.69  
Source:  Statistics of National Accounts, Ministry of Finance . 
*  Projections  
 
 
 
 
 WT/ACC/TLS/3  
 
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  ANNEX  7 
Revenues from Import Duties, Sales Tax and Excise Taxes, 2008  - 2015; US$ thousands  
 2008  2009  2010  2011  2012  2013  2014  2015  Total  
Import 
Duties 4,347  6,277  5,482  15,243  13,441  14,935  13,364  12,086  85,175  
Sales  
Tax 3,916  7,267  6,085  9,478  16,325  17,235  14,545  13,113  87,964  
Excise  
Tax 7,307  13,826  16,883  22,022  27,136  41,011  39,584  37,920  205,689  
Source : Ministry of Finance . 
  WT/ACC/TLS/3  
 
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  ANNEX 8 
Exports and Imports of Goods and Services, 2006  - 2014,  
US$ millions at current prices  
 2006  2007  2008  2009  2010  2011  2012  2013  2014  
Exports   
 Goods 2701 2826 4263 3103 3949 5457 6469 5241 3809 
 Services 34 47 49 61 63 63 55 77 62 
Imports   
 Goods 162 232 329 358 384 449 838 718 774 
 Services 576 879 932 1320 1388 1671 1721 1539 1623 
Source:  Ministry of Finance, Timor -Leste national accounts, 2000 -2014, 19 -23. 
  WT/ACC/TLS/3  
 
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  ANNEX 9 
Coffee Exports by Quantity and Value (2011 – 2015)  
  2011  2012  2013  2014  2015  
Total Value ( US$ '000)*  11,923  18,813  15,781  13,773  23,800  
Quantity (kg '000)  16,557  33,979  17,610  10,164  23,800  
Source : External Trade Statistics, Ministry of Finance . 
* Including export of green beans, roasted beans and ground coffee . 
  WT/ACC/TLS/3  
 
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ANNEX 10 
Composition of Exports and Imports of Goods and Services,  
2010 -14, US $ millions at current prices  
 2010  2011  2012  2013  2014  
Exports      
Minerals, incl. oil & gas 3,920  5,421  6,401  5,217  3,792  
Crops & vegetables 29 35 56 24 17 
Wood & wood products 0 1 12 0 0 
All other goods 0 0 0 0 0 
Travel 30 30 20 45 30 
Government goods & services 27 26 26 12 6 
All other  services 7 7 9 20 26 
Imports      
Oil sect or 131 133 198 199 227 
Machinery/electrical 37 117 270 82 60 
Mineral products  40 51 111 162 172 
Vehicles & transport equipment  53 33 52 64 74 
Ag products & food 53 37 79 91 106 
All other goods 69 77 129 121 134 
Unrepor ted import of goods 
(estimated) 25 32 64 52 55 
Maintena nce & repair services 294 298 441 444 508 
Construction 534 655 520 599 522 
Government goods & services  505 490 454 191 326 
Transport 54 59 95 84 89 
Travel 44 38 56 57 63 
Other Services 86 131 135 135 114 
Source:  Ministry of Finance, Timor -Leste National A ccounts, 2000 -2014, 19 -23. 
  WT/ACC/TLS/3  
 
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  ANNEX 11(A) 
Table 8 (a): Top Ten Trading Partners in 2012, US $ millions  
Imports  Exports  Re-exports  
Indonesia  159 Germany  8.4 Indonesia  10.7 
Singapore  125 USA 1.4 Australia  8.0 
China  41 Portugal  1.3 Malaysia  1.9 
Hong Kong  36 Japan  0.9 France  1.9 
Malaysia  36 Korea  0.5 Singapore  1.2 
Vietnam  34 Australia  0.4  Hong Kong  0.3 
Portugal  31 Belgium  0.3 Japan  0.3 
Thailand  21 France  0.2 USA 0.1 
Australia  19 Spain  0.1 China  0.08 
Japan  12 Taiwan  0.1 Spain  0.06 
Total  550 Total  13.9 Total  25.2 
Source : Direcção Nacional de Estatística, Dili: External Trade Statistics, Annual Report 2014, 19 -23.  
Note: exports = merchandise goods with at least 50% Timor -Leste content.  
 
 
  WT/ACC/TLS/3  
 
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  ANNEX  11(B) 
Top Ten Trading Partners in 2013, US$ millions  
Imports  Exports  Re-exports  
Indonesia  181.4  Germany  7.7 Singapore  11.1 
Malaysia  79.5 USA 5.8 Indonesia  8.7 
Singapore  62.5 Japan  1.0 Australia  4.8 
Vietnam  40.6 Australia  0.5 Sudan  2.2 
China  39.8 Singapore  0.3 Timor Leste  1.8 
Taiwan  30.3 Korea  0.4 Cyprus  1.7 
Australia  15.9 New Zealand  0.1 USA 1.5 
Portugal  12.2 Taiwan  0.1 Libya 1.0 
Japan  11.6 Netherlands  0.1 Lebanon  0.8 
Hong Kong  10.0 Belgium  0.0 UK 0.7 
Total  528.8  Total  16.1 Total  37.2 
Source:  Direcção Nacional de Estatística, Dili: External Trade Statistics, Annual Report 2013, 15, 26 and 27. 
Note: exports = merchandise goods with at least 50% Timor -Leste content.  
  WT/ACC/TLS/3  
 
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ANNEX 12 
Coffee Exports by Country of Destination, 2014  
Country of Destination Quantity (Kg) Value (US$) 
Germany     6,146,086  8,463,477  
Portugal        556,800  1,264,320  
USA  1,559,820  1,193,891  
Japan  422,745  848,919  
Australia  452,151  511,607  
Korea Republic of  258,300  473,400  
Belgium  222,105  300,000  
France  230,400  207,360  
Spain  115,200  120,960  
Taiwan  76,800  115,200  
Korea, Democratic People 's Republic  38,400  76,800  
Vietnam  38,006  75,000  
New Zealand  18,000  63,861  
United Kingdom  9,090  45,450  
Singapore  18,000  9,000  
Hong Kong  2,490  4,950  
Source : Direcção  Nacional de Estatística, Dili: External Trade Statistics, Annual Report 2014.  
Note: aggregate values for exports of coffee in various forms – green beans, roasted beans and 
ground  coffee.   WT/ACC/TLS/3  
 
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ANNEX 13 
Domestic Exports by Commodity and Destination, 2014; US$ thousands  
 2013  2014  
Value (000 's) Value (000 's) 
Coffee  15,181  13,773  
Teak 17 0 
Candlenut  143 84 
Aluminium  33 11 
Source : General Directorate of Statistics/ Direcção Nacional de Estatística, Dili: External Trade Statistics, 
Annual Report 2014, Ministry of Finance.  
  WT/ACC/TLS/3  
 
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  ANNEX  14 
Domestic Agricultural and Fisheries Exports by Commodity  
and Destination, 2012; US$ thousands  
HS code  Description  Value  Destinations  
0901 Coffee  18,858  Mainly Germany  
4413 Timber (mainly teak)  11,021  Mainly Singapore  
4403 1000 Sandalwood  523 Malaysia  
1211 9000  Sandalwood  168 China  
14019000  Rattan  144 China  
1515 4000  Candlenut oil  125 USA 
0302 3900  Tuna 97 Japan  
1212 2000  Seaweed (Rumput Laut)  24 Indonesia  
1702 9000  Honey  20 Malaysia  
2001 1000  Dry cucumber  1 Australia  
Source : Ministry of Finance.   WT/ACC/TLS/3  
 
- 63 - 
 
  ANNEX 15 
Approved Investmen ts 2006  - 2013 with Expected Employment over 100,  Expected 
investment in thousand US dollars  
Name  Date 
approved  Ownership  Expected 
employ -
ment  Expected 
investment  
(in US$)  Sector  
Anteater  18/08/2006  Timor -Leste  100 308,811   Civil Engineering  
Timor Global/TG Coffee  02/06/2006  Singapore  100 2,000,000   
3,154,461  Coffee processing  
Caixa Geral de 
Depositos (BNU)  01/09/2007  Portugal  100 3,154,461   
 Banking Services  
Esperanca Timor Oan, 
Lda 20/04/2012  Timor -Leste  100 9,060,000   
7,285,000   Petrol Stations  
East Development Corp  11/08/2010  South Korea  101 7,285,000   
9,000,000   Hotel Services  
Harbour City Hotel & 
Marine  05/08/2007  Australia  104 9,000,000   Hotel Services  
Fast Food Timor Lda  11/05/2014  Australia  104 1,584,002   
390,000   Fast Food restaurant  
Thai Pavilion  04/04/2006  Thailand  105 390,000   Spa, guesthouse & 
Restaurant  
Fortuna Lorosa 'e, Lda  20/04/2012  Timor -Leste  105 1,159,856   
1,584,002   Apartment for Rent & 
Supermarket  
Golden Star 
Restaurante Unipessoal 
Lda 12/09/2014  Timor -Leste  105 1,584,002   
12,079,056  Restaurant with 
Special in Chinese 
Cuisine  
Timor Cement Trading  08/10/2011  Timor -Leste  107 12,079,056   
 Cement Factory  
Bematan Agro Lda  28/06/2007  Timor -Leste  109 450,000   
450,000   
 Agriculture  
East Timor Trading  20/03/2007  Timor -Leste  110 987,000   
 Import & Distribution 
of Goods  
Carya Timor Leste Pty 
Lda 19/04/2007  Indonesia  120 1,010,000   Civil Construction  
Uriba Sgps  05/07/2008  Portugal  120 1,000,000   Construction and 
Development of Real 
State  
Agra Group Industries 
Lda 08/10/2009  Timor -Leste  124 235,000   Industry  
Multivision Pluz - 
MUPTL  14/09/2012  Indonesia  132 1,500,000   
17,627,156   Cinematographic 
Activities  
Timor Alimentar e 
Logistica Lda  19/11/2010  Indonesia  135 17,627,156   Rice, Fishery and 
Livestick Estate 
Development  
Holiwono Store  21/05/2007  Indonesia  143 800,000   
15,700,000   
 Construction Material  
Palm Spring Hotel Lda  N/A Timor -Leste  156 15,700,000   
528,078   Hotel & Restaurant  
Hemu International Lda  27/07/2008  United 
Kingdom  159 528,078   Manufacture of Soft 
Drinks & Mineral 
Waters  
Ellipse Energy 
International Ltd  17/12/2006  Singapore  162 26,750,000   
600,000   Refinery & Power 
Station project  
Grasia Farm Lda  29/07/2010  Timor -Leste  165 600,000   Chickens Aviary for 
Egg productions  
Infinite Techpark 
Priveted Limited  30/06/2011  India 171 357,120   
3,500,000   Salt Factory  
Monte Viando, Lda  09/10/2010  Timor -Leste  180 3,500,000   
3,000,000   Apartment 
Construction  
Dili Development 
Company Lda  10/04/2012  Timor -Leste  230 3,000,000   Property development 
specialized in Tourism 
Area 
Timor Telecom SA  21/04/2006  Portugal  291 7,796,000   Telecommunication  WT/ACC/TLS/3  
 
- 64 - 
 
  Name  Date 
approved  Ownership  Expected 
employ -
ment  Expected 
investment  
(in US$)  Sector  
Vittel Timor Leste, 
Unipessoal, Lda  19/09/2012  Vietnam  303 19,500,000   Telecommunication  
Beton timor 
International, S.A.  15/06/2011  Spain  304 2,510,153   
343,000   Material Construction 
Factory  
Asia Pacific Assurance 
Company (APAC)  19/10/2009  United States  320 343,000   Administration and 
Support Services  
Cement Timor Trading, 
S.A. 07/02/2012  Timor -Leste  321 12,079,056   Cement Factory  
Timor Global Pte. Lda  09/11/2006  Singapore  330 6,350,000   Cassava processing 
planting, and planting 
of peanuts crops  
Linated Unip. Lda  25/05/2007  Timor -Leste  476 1,625,000   Civil Construction  
Perissos Development 
and Investment, Lda  14/09/2012  Timor -Leste  535 10,500,000   
15,000,000   Property Development  
Tak Kong Electronica  18/05/2009  Timor -Leste  1,000  15,000,000   Factory of Electronical 
Products  
Heineken  08/01/2015  Singapore  1,000  45,000,000   Brewery Industry  
Maubere Security Lda  21/04/2006  Australia  2,000  500,000   
500,000   Security Services  
Pelican Paradise  N/A Singapore  2,000   Resort & Conference 
Center  
Timor Agri Corporation 
Ltda 22/10/2007  New Zealand  2,400  8,000,000   Agriculture & Forestry  
Source:  Specialized Investment Agency / Investment Promotion Agency of Timor -Leste, TradeInvest.  
 WT/ACC/TLS/3  
 
- 65 - 
 
  ANNEX 16 
 Investments Approved 2006  - 2014 
 Original Approvals  Revised Numbers  
Year Number  FDI Domestic  Estimated value  Number  FDI Domestic  
2006 41 37 4 68.8 20 18 2 
2007 30 21 + 8 188.3  13 7+1 5 
2008 10 7 3 22.8 3 1 2 
2009 19 14 5 318.7  6 4 2 
2010 7 4 3 28.4 6 3 3 
2011 12 6 6 33.8 10 6 4 
2012 32 17 15 152.4  29 15 14 
2013 11 4 7 71.8 10 2 8 
Total  162 111 51 885.0  100*  59+1  40 
Source : Specialized Investment Agency/Investment Promotion Agency of Timor -Leste.  
* Including three approved in 2014.  
 
  WT/ACC/TLS/3  
 
- 66 - 
 
  ANNEX 17 
 Migrant Remittance Inflows, 2006  - 2014, US$ millions  
Year 2006  2007  2008  2009  2010  2011  2012  2013  2014  
Remittances  4 10 18 113 137 137 120 34 45 
Source : World Bank, Annual Remittance Data (April 2015).  
 
  WT/ACC/TLS/3  
 
- 67 - 
 
  ANNEX  18 
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 i nconsistent 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 wit h 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 Regulatio n 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 (except in the case of petroleum tax matters).  
  WT/ACC/TLS/3  
 
- 68 - 
 
  ANNEX 19 
Ministries and State Bodies Responsible for the Regulation  
in Specific Services Sectors/Sub -Sectors  
Services sector / sub -sector  Responsible Ministry / state body  
Financial services   Central Bank of Timor -Leste (CBTL)  
Telecommunications  National Communications Authority  
Educational services  Ministry of Education  
Oil & gas and mining  Ministry of Petroleum 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, Transports and 
Communications  
Transport services  Ministry of Public Works, Transports and 
Communications   
  WT/ACC/TLS/3  
 
- 69 - 
 
  ANNEX 20 
List of Decree -Laws enacted to date ( as of May 2017 )  
by the 6th Constitutional  Government  
1. Decree -Law No. 14/2015,  
of 24 June 2015  Framework  Law of the Ministry of Agriculture and Fisheries  
2. Decree -Law No. 12/2015,  
of 3 July 2015  Framework Law of the Ministry of State Administration  
3. Decree -Law No. 20/2015,  
of 8 July 2015  Framework Law of the Ministry of Defense  
4. Decree -Law No. 21/2015,  
of 8 July 2015  Framework Law of the Ministry of Health  
5. Decree -Law No. 26/2015,  
of 12 August 2015  Framework Law of the Ministry of Justice  
6. Decree -Law No. 27/2015,  
of 19 August 2015  Framework Law of the Secretariat of State for Vocational Training 
and Employment Policy  
7. Decree -Law No. 29/2015,  
of 26 August 2015  Framework Law of the Presidency of the Council of Ministers  
8. Decree -Law No.  31/2015,   
of  26  August  2015  Framework Law of the Ministry of Planning and Strategic Investment  
9. Decree -Law No. 32/2015,  
of 26 August 2015  Framework Law of the Ministry of Tourism, Arts, and Culture  
10. Decree -Law No. 33/2015,  
of 26 August 2015  Framework Law of the Ministry of Social Solidarity  
11. Decree -Law No. 34/2015,  
of 2 September 2015  Framework Law of the Ministry of Foreign Affairs and Cooperation  
12. Decree -Law No. 35/2015,  
of 16 September 2015  Framework Law of the Ministry of Interior  
13. Decree -Law No. 36/2015,  
of 16 September 2015  Amendment to Decree - Law 4/2012 of 15 February 2012 on the 
Municipal Integrated Development Planning  
14. Decree -Law No. 37/2015,  
of 30 September 2015  Establishes the Regime for Nomination and Placement of Liaison 
Officers for the Interior Ministry and the Regime for Participation of 
Security Services and Civil Protection Agents in I nternational 
Missions  
15. Decree -Law No. 38/2015,  
of 7 October 2015  Organic Law of the Ministry of Finance  
16. Decree -Law No.1/2016,  
of 9 February 2016  First Amendment of Decree -Law No.20/ 2008 of 19 June 2008 
(National Petroleum Authority)  
17. Decree -Law No.2/2016 ,  
of 16 March 2016  Statutes of President of Municipal Authority and Municipal 
Administrator  
18. Decree -Law No.3/2016 ,  
of 16 March 2016  Statutes of Municipal Administrator , Municipal Authority and 
Inter-ministerial Technical Group on Administrative  Decentralization  
19. Decree -Law No.4/2016 ,  
of 16 March 2016  Council for Definitive Delimitation of Maritime Borders  
20. Decree -Law No.5/2016 ,  
of 16 March 2016  National System of Protected Areas  
21. Decree -Law No.6/2016 ,  
of 20 April 2016 Legal Regime of Licensing, Exploration, and Control of Social Activity 
of Gambling, Gambling Machine, and Traditional Gambling  
22. Decree -Law No.7/2016 ,  
of 20 April 2016  First Amendment to Decree -Law No.17/2009 of 8 April 2009 
(Regulation of the Mil itary Service Law)  
23. Decree -Law No. 8/2016 ,  
of 4 May 2016  Organic of the Secretariat of State for the Support and 
Socio -Economic Promotion of Women  
24. Decree -Law No.9/2016 ,  
of 4 May 2016  The Material Resources and Financial Incentives of Community 
Leadership  
25. Decree -Law No.10/2016 ,  
of 4 May 2016  General Rules of the Territorial Planning Plan of the Island of Atauro  
26. Decree -Law No.11/2016 ,  
of 11 May 2016  Organic of Court Support Services  
27. Decree -Law No.12/2016 , 
of 11 May 2016  Special Procurement Regime of SAMES  
28. Decree -Law No.13/2016 ,  
of 18 May 2016  Regulate Infrastructure Fund  
29. Decree -Law No.14/2016 ,  
of 8 June 2016  Tobacco Control Regime  
30. Decree -Law No.15/2016 ,  
of 8 June 2016  First Amendment of Decree -Law No.11/2013 of  7 August 2013 
(Procurement Regime of PDID)  WT/ACC/TLS/3  
 
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  31. Decree -Law No.16/2016 ,  
of 22 July 2016  Organic Law of the Ministry of Petroleum and Mineral Resources  
32. Decree -Law No.17/2016 ,  
of 22 July 2016  Licensing, Installation, Classification and Functioning  of Camping 
Parks  
33. Decree -Law No.18/2016 ,  
of 22 July 2016  Regime of the Training Activities of the Centre  for Legal and Judicial 
Training  
33. Decree -Law No.19/2006 ,  
of 22 July 2017  Legal Regime for the Licensing and Operation of Travel and Tourism 
Agencies  
34. Decree -Law No.20/2016 , 
of 22 July 2017  Organic of Ministry of Public Works, Transport and Communication  
35. Decree -Law No.21/2016 ,  
of 22 July 2017  Organic of National Library of Timor -Leste  
36. Decree -Law No.22/2016 ,  
of 22 July 2017  Legal  Regime for Publication of Legal Deposit in Timor -Leste  
37. Decree -Law No.23/2016 ,  
of 29 June 2016  Statute of the Diplomatic Career  
38. Decree -Law No.24/2016 ,  
of 29 June 2016  Second Amendment of Decree -Law No.27/2008 of 8 August 2008 
(General Regime of  Public Administration Career  
39. Decree -Law No.25/2016 ,  
of 29 June 2016  Regime for Chief and Head of Department Position in the Public 
Administration  
40. Decree -Law No.26/2016 ,  
of 29 June 2016  Create the Authority for Inspection and Supervision of Eco nomic, 
Food and Sanitary Activities, Public Institution  
41. Decree -Law No.27/2016 ,  
of 29 June 2016  Legal Regime for Office of the Ministries  
42. Decree -Law No.28/2016 ,  
of 13 July 2016  First Amendment of Decree -Law No.7/2014 of 12 March 2014 
(Statute of  F-FDTL Military)  
43. Decree -Law No.30/2016 ,  
of 13 July 2016  Legal Regime for Toponomy and Numbering of Police  
44. Decree Law No.31/2016 , 
of 13 July 2016  Amendment of the Organic Law of the Ombudsman for Human Rights 
and Justice  
45. Decree -Law No.32/20 16, 
of 17 August 2016  Offshore Oil Operations in Timor -Leste  
46. Decree -Law No.33/2016 , 
of 17 August 2016  Regulate Licensing of Electricity Energy and Tariffs  
47. Decree -Law No.34/2016 ,  
of 17 August 2016  Second Amendment of Decree -Law No. 19/2010 of 1 December 2016 
(the Statute of the General Labo ur Inspection)  
48. Decree -Law No.35/2016 , 
of 7 September 2016  Create Installation Commission of the Authority for Inspection, 
Supervision of Economic, Food and Sanitary Activity (Public Institute)  
49. Decree -Law No.36/2016 , 
of 7 September 2016  Organic Structure of the Secretariat of State for Youth and Sports  
50. Decree -Law No.37/2016 , 
of 7 September 2016  Transitional Regime for the Filling of Management and Leadership 
Positions of Municipal Authorities and A dministration during the 
Administrative Deconcentrating Phase  
51. Decree -Law No.38/2016 , 
of 14 September 2016  Amendment of Decree -Law No. 11/2012, of 29 February 2016 
(Hospitals of the National Health Service)  
52. Decree -Law No.39/2016 , 
of 14 September 2016 Statutes of Guido Valadares National Hospital  
53. Decree -Law No.40/2016 , 
of 5 October 2016  First Amendment of Decree -Law No.39/2008 of 29 October 2008 
(Organic Statute of the National Laboratory  
54. Decree -Law No.41/2016 , 
of 5 October 2016  Repeals Decree -Law no. 40/2012, of 5 5 September 2012 (National 
Electricity Program)  
55. Decree -Law 42/2016 , 
of 5 October 2016  First Amendment of Decree -Law No. 8/2005, of 16 November 2005, 
(Creates Civil Aviation Authority and Approves the Respective 
Statutes)  
56. Decree -Law No.43/2016 , 
of 14 October 2016  Rules Relating to Access to Official Documents  
57. Decree -Law No. 44/2016 ,£ 
of 26 October 2016  First Amendment of Decree -Law No. 1/2007, of 18 January 2016 
(Organic Statute of the Technical Secretariat of the Electoral 
Administration)  
58. Decree -Law No. 1/2017 , 
of 15 March 2017  National Press of Timor -Leste, Public Institution  
59. Decree -Law No. 2/2017 , 
of 22 March 2017  Solid Waste Management System  
60. Decree -Law No.3/2017 , 
of 22 March 2017  Scheme for Limit ed Duration Parking Zones  
61. Decree -Law No.4/2017 , 
of 22 March 2017  Organic Statute of the National Archives of Timor -Leste  WT/ACC/TLS/3  
 
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  62. Decree -Law No.5/2016 , 
of 22 March 2016  Extraordinary allowance for members of the Electoral Administration 
Organs in Timor -Leste  
63. Decree -Law No.6/2017 , 
of 22 March 2017  Second Amendment of Decree -Law No.8/2008 of 5 March 2008 
(creates the National Institute for the Development of Manpower  
64. Decree -Law No.7/2017 , 
of 22 March 2017  Business Registry and Verification Service, Public Institution  
65. Decree -Law No.8/2017 , 
of 29 March 2017  Statute of the Eduardo Ximenes Regional Hospital  
66. Decree -Law No.9/2017 , 
of 29 March 2017  Organic Statute of the Customs Authority  
67. Decree -Law No.10/2017 , 
of 29 March 2017  New Statute of the Public Defender  
68. Decree -Law No.11/2017 , 
of 29 March 2017  Regime for Use of Official Languages in the Justice Sector  
69. Decree -Law No.12/2017 , 
of 29 March 2017  First Amendment of Decree -Law No. 52/2016 of 28 December 2016  
70. Decree -Law No.13/2017 , 
of 5 April 2017  Organic Structure of the Tax Authority  
71. Decree -Law No.14/2017 , 
of 29 March 2017  Procedure for the Submission of Proposal for the Classification of 
Protected Area  
72. Decree -Law No.15/2017,  
of 17 May  Organic Structure of National Institut e of Public Administration  
73. Decree -Law No.16/2017,  
of 17 May  New Commercial Registry Regime   
  WT/ACC/TLS/3  
 
- 72 - ANNEX 21 
List of laws and legal acts, and other normative legal decrees regulating customs, imports, exports, transit, rules on foreign 
investment, and economic questions influencing trade in goods and services  
 Legal Act  Title 
1. Decree -Law No.6/2016 of 20 April 2016  Legal Regime of Licensing, Exploration, and Control of Social Activity of Gambling, Gambling 
Machine, and Traditional Gambling  
2. Decree -Law No.19/ 2017 of 22 July 2017  Legal Regime for the Licensing and Operation of Travel and Tourism Agencies  
3. Decree -Law No.26/2016 of 29 June 2 016 Create the Authority for Inspection and Supervision of Economic, Food and Sanitary Activities,  
Public Institution  
4. Decree -Law No.32/2016 of 17 August 2016  Offshore Oil Operations in Timor -Leste  
5. Decree -Law No.33/2016 of 17 August 2016  Regulate Licensing of Electricity Energy and Tariffs  
6. Decree -Law No.35/2016 of 7 September 2016  Create Installation Commission of the Authority for Inspection, Supervision of Economic, Food and 
Sanitary Activity (Public Institute)  
7. Decree -Law No.3/2017 of 22 March 2017  Scheme for Limited Duration Parking Zones  
8. Decree -Law No.7/2017 of 22 March 2017  Business Registration and Verification Service, Public Institution  
9. Decree -Law No.9/2017 of 29 March 2017  Organic Statute of the Customs Authority  
10. Decree -Law No.13/2017 of 5 April 2017  Organic Structure of the Tax Authority  
11. Decree -Law No.16/2017 of 17 May 2017  Business Registration  
12. Decree -Law No.14/2017 of 5 April 2017  Customs Code  
13. Law No. 13/2017 of 5 June 2017  Land and Property Law  
14. Decree -Law No. 19/2003 of 8 October 2003 and its 
amendment No. 28/2015 of 19 August 2015  Regulation on Tariffs for Ports  
15. Decree -Law No. 42/2012 of 7 September 2012 and its 
amendment No. 2/2014 of 15 January 2014  Legal Regime of Public -Private Part nerships  
16. Decree -Law No. 8/2014 of 19 March 2014  Regulation on the Legal Regime of Public -Private Partnerships  
17. Decree -Law No. 16/2014 of 18 June 2014  Financial Information Unit (Central Bank)  
18. Decree -Law No. 15/2012 of 28 March 2012  Regulation  of the Telecommunications Sector  
19. Decree -Law No. 29/2011 of 20 July 2011  Price Control  
20. Decree -Law No. 28/2011 of 20 July 2011  Regulation for Industry and Sale of Food  
21. Decree -Law No. 2/2010 of 18 February 2010  Special procedures for awardi ng construction works up to US$ 250,000 to local companies with 
registered offices in the sub -districts  
22. Decree -Law No. 26/2010 of 22 December 2010  Registration of sole entrepreneurs of the construction sector  
23. Decree -Law No. 27/2010 of 22 December 2010 Rules for the certification and registration of construction and construction consultancy companies  
24. Law No.08/2017 of 26 April 2017  Expropriation by Public Utility  
25. Law No.10/2017 of 17 May 2017  New Business Law  
26. Law No.08/2016 of 7 Augus t 2016  Consumer Protection Law  
 WT/ACC/TLS/3  
 
- 73 - 
 
   
ANNEX 22 
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 half (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 indicate 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  Immunities  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; and  
(ii)  Import duty that would be imposed on the import if not for this paragraph would be 
US$10 or less.  
  WT/ACC/TLS/3  
 
- 74 - 
 
  ANNEX 23 
Fees and charges for services rendered  
Fees and charges p rovided 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 comply 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 145.5  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 ti me 
limits, and goods have been stored beyond legal time 
limits  The amount of customs duties  
and other duties owing 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 docume nt 
 
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 US$15 or  WT/ACC/TLS/3  
 
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  Article of 
Decree -Law 
No. 14/2017  Name of the Charge  Amount ( US$) 
motorcycles  US$30*  
Article 381.1  For each operation or assistance of denaturation, 
coloration, fiscal marking, or destruction of 
merchandise  US$10 or  
US$20*  
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 . The amount to be defined through other regulation.  
  WT/ACC/TLS/3  
 
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  ANNEX 24 
Business vehicles available under Law No. 4/2004  
of 21 April 2004 on Commercial  Companies  
(a) Permanent Representation (Branch) of a Foreign Company - Representação 
Permanente (R.P.)  
 
A company incorporated in another country carrying on business in Timor -Leste must register as a 
permanent representation (branch) of the foreign company (Article  3(1) of Law No. 4/2004). It 
must appoint one or more representatives, one of them being a Timorese national or a foreigner 
holding a valid residence permit in Timor -Leste. The permanent representation is managed by the 
representative(s)  empowered  by  me ans  of  a  power  of  attorney  issued  by  the  foreign  
parent company. The permanent representation does not have a statutory share capital, but the 
foreign parent company must allocate working capital to the local branch (Article 3(2) of Law No. 
2004/ 04 and Article 26 of Decree -Law No. 35/2012). The filing for registration must include the 
documents set out in Decree -Law No. 35/2012, including proof of incorporation of the foreign 
parent company in the country of origin (e.g.  certificate of registrati on),  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), allocation of 
capital, a power of attorney granting m anagement 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 the official languages of 
Timor -Leste (Portug uese or Tetum) and certified by the Timor -Leste diplomatic representation 
accredited to the country of origin. Timor -Leste law provides for several types of companies, but 
the most common are Limited Liability Companies by Quotas ( "Sociedade por Quotas ") and the 
Joint Stock Companies ( "Sociedade Anónima "). 
(b) Sole Trader – Empresário Em Nome Individual (ENIN)  
A foreign natural person may also carry on business in Timor -Leste without the need of 
incorporating a company or registering 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 Decre e-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 trad ing name (Article 42 of Decree -Law No. 35/2012). As 
previously mentioned, a business license 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 
legally enter into and stay in Timor -Leste (please refer to the section below on Measures Affecting 
Movement of Natural Persons).  
(c) General Partn ership – Sociedade em  Nome Cole tivo 
A foreign natural person or a foreign legal person may enter into a General Partnership with one or 
more partners to carry on business to supply services in Timor -Leste.  Chapter II, Articles 160 to 
176 of Law No. 4/2004 (Law on Commercial C ompanies), sets out the rules on General 
Partnerships.  The principal consequence of doing business as a General Partnership is that each 
partner is fully liable, jointly and severally, for the obligations of the partnership. General 
Partnerships can be est ablished by two or more partners who may be natural persons or legal 
persons. The partners may contribute with capital or work (Article 161.1), but the latter is not 
counted towards the share capital amount (Article 163.1). The contributions of capital may  be paid 
within 5 years (Article 161.2). Unless otherwise specified in the Articles of Association, working 
partners do not share in losses (Article 163.2), but the Articles of Association should specify the 
value assigned to their contribution in the form  of work for the purpose of profit distribution 
(Article 162.1.(b).  
A partnership must trade either under a corporate name comprising all of the names of the 
partners or under the name of one of them followed by the words "e Companhia " (Article 160.5 of 
Law No. 4/2004). All partners of a General Partnership are Directors of the partnership (Article 
168.1 of Law No. 4/2004). At least one Director must reside in Timor -Leste (Article 61 of Law No. 
4/2004), meaning that he or she must be a Timorese national or a foreigner holding a valid 
residence permit.  WT/ACC/TLS/3  
 
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  (d) Limited Partnership - Sociedade em Comandita  
 
A foreign natural person or a foreign legal person could form a Limited Partnership with one or 
more partners to supply services in Timor -Leste. Chapter III,  Articles 177 to 184 of Law 
No. 4/2004 (Law on Commercial Companies), sets out the rules on Limited Partnerships. The 
principal feature of a Limited Partnership is that the partnership may include "limited or silent 
partners " ("sócios com anditários ") whose liability is limited to the extent of their capital 
contribution, and "general partners " ("sócios comanditados "), whose liability is the same as under 
a General Partnership (Article 178.2).  
Limited Partnerships can be established by two or more partners who may be natural persons or 
legal persons (Article 178.3 allows companies to be partners). The Articles of Association must set 
out the names of the general partners and of the limited/silent partners (Article 179(1)), and as 
well specif y if the partnership is a "Simple Limited Partnership " or a "Limited Partnership by 
Shares " (Article 179.2). The rules applicable to General Partnerships apply to Simple Limited 
Partnerships (Article 180.1). The rules applicable to Joint Stock Companies ap ply to Limited 
Partnership by Shares (Article 180.2). A Limited Partnership must trade under a corporate name 
composed of one or more of the general partners ' names followed by the words "em Comandita, & 
Companhia, em Comandita por Acções or "& Comandita p or Acções " (Article 177.2).  
(e) Limited Liability Company - Sociedade Por Quotas (LDA.)  
 
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 Limited Liability Company. It may own all (in which case 
they are called Single Quotaholder Limited Liability Company), or a portion of the capital in the 
company. Certain laws relating t o specific business activities may prescribe a minimum or 
maximum foreign (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 License must have at least 5% Timorese shareholding.  
Chapter IV of Law No. 4/2004, comprising Articles 185 to 218, sets out the rules relating to 
Limited Liability Companies. The principal features of a Limited Liability Company are the 
following:  
1. The company cannot have more than 30 quotaholders or less than 2 quotaholders 
(in case of a company with only 1 quotaholder, it is called a Single Quotaholder 
Limited Liability Company); in order to increase the number of  quotaholders above 
30 would require that the company be converted into a Joint Stock  Company 
(Article 187).  
2. The capital cannot be less than US$ 5,000 or more than US$ 500,000. The capital 
can only be increased above US$ 500,000 by transforming the company into a 
Joint Stock Company (Article 188). The company 's capital is not divided by shares 
(as is the case of joint stock companies); instead, the quotaholders hold an 
immaterial percentage of the capital in the company (in Portuguese, "quota "). 
3. Payment of up to 50% of the nom inal value of the capital contributions to be made 
in cash may be deferred for a maximum  period of 3 years from the date of the 
company 's incorporation, provided, however, the minimum capital required by law 
(US$5,000) is fully paid upon incorporation (Ar ticle 190).  
4. Quota holders are jointly and severally liable to the company for the payment of 
the entire company 's capital. In the event that any quota holder fails to contribute 
its participating interest the other quota holders are liable to contribute th at 
amount to the company in proportion to their quotas (Article 191).  
5. After the capital has been paid the liability of quota holders is limited to the 
amount of their quota (Article 191).  
6. The mandatory corporate bodies are (i) the General Assembly of Quota  holders and 
(ii) the Board of Directors. At the company 's General Assembly Meetings each 
quota holder holds a vote corresponding to the percentage of the interest held in 
the company 's capital. The Board of Directors is comprised of one or more WT/ACC/TLS/3  
 
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  directors,  who may or may not be quota holders, appointed for an unlimited term, 
or for a three -year limited term. If the company has a capital equal to or higher 
than US$ 200,000, the management must be comprised of a Board of Directors 
with an odd number of member s (minimum of 3 directors). A Limited Liability 
Company is required to appoint a company secretary and an auditor or an auditing 
board if there are more than 10 quota holders, the company issued debentures, or 
if prescribed thresholds for capital or volume  of income are exceeded (Article 41 of 
Law No. 4/2004).  
7. One Director must be a resident of Timor -Leste (Article 61 of Law No. 4/2004), 
 meaning a Timor -Leste national or a foreigner holding a valid residence permit.  
8. The  name  of  a  Limited  Liability  Co mpany  must  end  with  the  word  
"Limitada "   or  the abbreviation "Lda." 
(f) Single Quotaholder Limited Liability Company – Sociedade Unipessoal Por Quotas 
Unipessoal, LDA.  
A foreign  natural person or foreign legal person may establish a Single Quotaholder Limited 
Liability Company in Timor -Leste.  
Chapter IV, P art IV of Law  No.  4/2004, comprising Articles 219 to 221, addresses Single 
Quotaholder  Limited Liability Companies. The provisions applicable to Limited Liability Companies 
(above) apply with the necessary adjustments (Article 219.1). The rule requiring one Director  to 
be a resident in Timor -Leste also applies to Single Quotaholder Limited Liability Companies (Article 
61). The liability of the sole quotaholder is limited to the value of the capital subscribed 
(Article  191).  
The name of a single quotaholder company must end with "sociedade unipessoal " or "unipessoal " 
followed by the word "Limitada" or "Lda" (Article 219.3).  
Single  Quotaholder  Limited  Liability  Companies  are  subject  to  certain  strict  rules  
concerning business transactions with the sole quotaholder, as follows: under penalty of being 
deemed  null and void, any such tra nsaction must be (i) made in writing (unless a more formal 
procedure is legally required) and (ii) necessary, useful and convenient to fulfill the company 's 
object. Any transaction must additionally be subject to a prior report drawn up by an independent 
accounting auditor, who shall declare that the company 's interest is duly safeguarded and that the 
transaction is executed on an arms -length basis.  
(g) Joint Stock Company – Sociedade Anónima (S.A.)  
 
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 shareholde rs and a minimum capital of 
US$50,000.  
Chapter V of Law No. 4/2004 comprising Articles 222 to 301 sets out the rules relating to Joint 
Stock Compa nies. The principal features of a Joint Stock Company are the following:  
1. The company must have a minimum of 3 shareholders (Article 222.1);  
2. The share capital must be at least US$ 50,000 and all shares shall have the same 
value, with a minimum of US$ 10 (Article 222). Each shareholder attending the 
general assembly has the number of votes equivalent to their number of ordinary 
shares in the share capital of the company. The share capital may be paid up in 
cash or in kind (assets capable of being seize d, credit rights over third parties);  
3. The company may have ordinary shares (granting voting rights and rights to 
dividends from distributable profits), which can be divided into different categories, 
and preferential shares (which do not grant voting right s, but grant a right to 
priority dividends and to priority reimbursement in case of distribution of the 
company 's assets due to liquidation). Share certificates may be nominative or 
bearer (and can be converted from one to another) and have coupons for col lecting 
dividends. Under certain circumstances an S.A. company may also issue bonds;  WT/ACC/TLS/3  
 
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  4. The incorporation of the company requires the full subscription of the share capital. 
A maximum of 75% of the share capital in cash may be paid up within a maximum 
period of five 5 years, provided that the minimum statutory share capital 
(US$50,000) is paid prior to the incorporation of the company. The entire share 
capital in kind must be paid up prior to the incorp oration of the company 
(Article  223 and 238);  
5. The liabilit y of each shareholder is limited to the payment of their respective shares 
(Article 239);  
6. One director must be a resident of Timor -Leste (Article 61 of Law No. 4/2004);  
7. The company must have the following mandatory corporate bodies: (i) a General 
Assembly of Shareholders, (ii) a Board of Directors, (ii i) a company secretary and, 
(iv) a single auditor or an auditing board (Article 41 of Law No. 4/2004). 
Additionally, the Board of Directors may delegate the day -to-day management of 
the company to one of the D irectors or in an executive commission comprising 
several directors. The Board of Directors must be comprised by an odd number of 
Directors equal to or higher than 3, appointed for a maximum of 3 years. The audit 
body is composed of 3 members (one of which  must be a certified auditor), who 
are elected for a 1 -year term with the possibility of re -election.  
8. The name of a Joint Stock Company must end with the words "Sociedade Anónima " 
or with the abbreviation "S.A." 
(h) Additional Branches  
A foreigner that has  already incorporated and registered a compa ny in Timor -Leste (under 
Decree - Law No. 7/2006 as amended by Decree -Law No. 35/2012) and obtained a commercial 
license (under Decree -Law No. 24/2011) or an Authorization to Exercise Activity (under 
Decree -Law No . 35/2012) may establish additional branches of the business in new locations. 
However, if the commercial license limits the approved business to particular premises, then a new 
application for a license must be made. In addition, Decree -Law No. 7/2006 pro vides that a 
company must register all branches of its company (Article 3(b)). Article 23.2 of Decree -Law 
No. 35/2012 sets out the documents that are required to be lodg ed in order to register the 
new branches.  
In order to simplify the aforementioned system, the Government has presented to the National 
Parliament a bill proposing the revision of the Law on Commercial Companies. The proposal is 
currently being discussed in the National Parliament and it is expecte d to be approved in the 
upcoming months.  
The main simplification measures are as follows:  
1. Elimination of the General Partnerships as well as the Limited partnerships 
companies, which were never used in practice, and are being abolished in other 
legal frameworks;  
2. Elimination of the bearer shares in the Joint Stock Companies;  
3. Introduction of rules to release accurate informatio n on the beneficial ownerships;  
4. Elimination of the capital share in the Limited Liability Company;  and, 
5. Introduction of rules re garding affiliated companies.  
  WT/ACC/TLS/3  
 
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  ANNEX 25 
Measures Affecting Movement of Natural Persons  
The relevant  legislation affecting  the temporary entry or temporary stay of natural persons is:  
1.  Law No. 9/2003 of 15 October 2003 - Immigration and Asylum Law (hereinafter 
 referred to as the Immigration law);  
2.  Decree -Law No. 5/2010 of 16 March 2010 - On Granting of Visit Visas and Transit 
 Visas On Arrival; and,  
3.  Decision No. 232/SEPFOPE -GSE/D/X/2013 of 1 October 2013, issued by the Secretary 
 of State for Pro fessional 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 relevant  agencies of the government responsible for  granting authorization for entry and/or 
stay of natural persons are:  
1.  The Department of Immigration within the Ministry of Interior;  
 
2.  The  Directorate -General  for  Consular  Affairs  within  the  Ministry  for  Foreign  
 Affairs  and Cooperation;  
 
3.  The General Labor Inspectorate under SEPFOPE.  
 
Depending on the type of visa requested, applications are made to the Department of Immigration 
or to Directorate -General for Consular Affairs. The Directorate -General for Consular Affairs  acts on 
the advice of th e Department of Immigration. Regarding the granting of visas for work purposes, 
prior to the submission of the visa application to the Directorate -General for Consular Affairs, the 
General Labor Inspectorate must authorize the performance of the  professional activity in 
Timor -Leste and verify the qualifications needed for such performance.  
- Visas  
The Immigration Law (Law No. 9/2003) provides for three categories of visas:  
1. Ordinary visas of which there are 4 different classes, none of which quali fy the person 
to work in the country (Article 35);  
2. Work visas which do authorize the bearer to carry ou t a professional activity as an 
employee or independent worker (Article 36); and  
3. A visa to allow the bearer to apply for temporary residency, which can b e 
accompanied by an authorization to carry out a professional activity as an employee 
or independent worker (Article 37).  
 
The law also provides for those residing on a longer -term basis to apply for permanent  residence.  
 
  WT/ACC/TLS/3  
 
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  - Ordinary Visas  
There are 4 cla sses of Ordinary Visas:  
Ordinary Visa Class I applies to persons entering for either tourism or business. The visa can be for 
a period of up to 90 days, is valid for one year, and can be granted for a single entry or for 
multiple entries (Article 35.2 of L aw No. 9/2003). An ordinary Class I Visa can be extended for up 
to 90 days (Article 42.1(a) Law No. 9/2003), allowing a total stay of up to 180 days.  
According to Decree -Law No. 5/2010, persons arriving at an airport or port who are nationals of a 
country on a list of authorized countries may apply for an Ordinary Class I Visa at the port of entry 
(Article 3.1 of Decree -Law No. 5/2010), and the Department of Immigration can grant the visa at 
the port of entry (Articles 38.4 and 39.4 of Law No. 9/2003). Pers ons arriving at an airport or port, 
who are not nationals of a country on the list of authorized countries need to apply for an Ordinary 
Class I Visa at a Timor -Leste consulate abroad (Article 4.2 of Decree -Law No. 5/2010) and the visa 
is issued by those C onsulates (Article 38.4 and 39.4 of Law No. 9/2003). The abovementioned list 
of authorized countries has not yet been published and Timor -Leste Embassies and Consulates are 
not issuing visas, thus, in practice, the Ordinary Class I Visa must be obtained on  arrival at the 
port of entry.  
Under Decree -Law No. 5/2010 persons arriving at a land border who are nationals of Indonesia, or 
of a country with which Timor -Leste has an agreement, may apply for an Ordinary Class I Visa at 
the land border control post. Pe rsons arriving at a land border who are nationals of any other 
country must apply for an Ordinary Class I Visa at a Timor -Leste consulate abroad (Article 2.2 of 
Decree -Law). Currently, Timor -Leste 's Embassies and Consulates are not issuing visas, thus, in 
practice, the abovementioned visa must be obtained at the ports of entry at the border.  
According to the terms of a bilateral agreement between Timor -Leste and Portugal, entered into on  
20 May 2002, Portuguese nationals who present a Portuguese passport on  arrival and who seek to 
enter for tourism, business, cultural, or journalism purposes are exempted from having to obtain 
an Ordinary Class I Visa. They may stay up to 90 days from the date of arrival. The stay period 
may be extended up to a further 90 day s after arrival on application to the Department of 
Immigration, where that further stay is justified on exceptional grounds.  
Parliamentary Resolution No. 10/2015 of 5 August 2015, approving the Agreement between 
Timor -Leste and the European Union, establi shes a visa exemption regime for European Union 
citizens  and Timor -Leste citizens arriving in the respective territory of the counterpart for a 
maximum period of 90 days in each period of 180 days. This exemption is not applicable to 
persons traveling for purposes of performing a professional activity. This agreement enters into 
force on the first day of the second month following the date on which the last notification of 
conclusion of the respective internal approval procedures occurs.  
Ordinary Class II V isas are designed for short transit through Timor -Leste for a maximum of 
72 hours  (Article 35.3).  
Ordinary Class III Visas are student visas issued for up to one year at a time but renewable 
(Article  35.4)  
Parliamentary Resolution No. 11/2009 of 6 May 2009, approved the agreement on the granting of 
visas  for  students  who  are  nationals  of  the Member  States  of  the Community of  Portuguese 
Speaking Countries, which sets forth common rules concerning t he granting of said visa.  
Ordinary Class IV Visas allow for a duration of up to 180 days for persons visiting "on a cultural  
trip, for scientific research, as an artist or athlete, or as a foreign media correspondent. " 
- Work Visa  
Under Law No. 9/2003 appl ications for work visas must be made to a Timor -Leste consular office 
abroad or, in cases where the applicant resides in countries or territories where there are no such 
entities, to the Directorate -General for Consular Affairs of the Ministry of Foreign A ffairs and 
Cooperation (Article 39). However, for the time being, Timor -Leste 's Embassies and Consulates are 
not issuing visas, thus, at present, the application must be submitted in Timor -Leste to the 
Directorate -General for Consular Affairs. Pursuant to Law No. 9/2003 the Directorate -General for 
Consular Affairs of the Ministry of Foreign Affairs and Cooperation must consult with the WT/ACC/TLS/3  
 
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  Immigration Department of the Ministry of the Interior and with the General Labor Inspectorate 
(Articles 38.2 and 38.3). Th e applicant must, among other requirements, supply evidence of 
employment and professional competence (Article 40). If the Directorate -General for Consular 
Affairs in the Ministry of Foreign Affairs and Cooperation approves the visa, then it issues an 
authorization to the applicant and to the border control point, which issues the visa (Article 39.3).  
The Work Visa allows the bearer to carry out the employment or the professional activity that was 
claimed in the visa application (Article 36). The Work Visa allows a stay of up to one year and is 
valid for one or multiple entries (Article 36.3). The bearer may obtain three extensions for 
additional periods of 1 year with each extension, up to a total of 4 years (Article 42.1(b)).  
A person granted a Work Visa t o be employed with a particular employer is not permitted to work 
for a different  employer unless the person obtains approval from the General Labor Inspectorate 
(Article 8.3). 
- Visa to Establish Temporary Residency  
There is an additional  category of visa for persons to enter the country for the purpose of applying 
for temporary residence (Article 37 of Law No. 9/2003). This visa allows the bearer to remain in 
the country for 6 months. It is possible that the terms of the visa may allow ac tivity as an 
employee or independent worker. Law No. 9/2003 states that the number of such visas allowing 
work is limited according to an annual resolution of the Council of Ministers (Article 37.5). 
However, taking into consideration that this resolution has not yet been published, the granting of 
such visa is not currently subject to a maximum quota.  
- Application for Temporary Residence or for Permanent Residence  
A person who has been a legal resident for 12 years may receive permanent residency status 
(Article 53). However, persons who are a resident for a lesser period may apply for a temporary 
residence authorization, which is valid for 2 years but can be ren ewed for equal periods 
(Article  51).  WT/ACC/TLS/3  
 
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  ANNEX 26 
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. Ministry of Justice Order 19/GM/MJ/III/2009 of 20 March 2009, on the definition of small, 
medium, and large commerce and industries;  
 
4. Decree -Law No. 6/2011 of 9 February 2011 – Rules for Relocation of Unlawful Occupants of 
State Property;  
 
5. Decree -Law No. 27/2011 of 6 July 2011 on the Settlement of Ownership of Immovable Assets 
in Undisputed Cases (the "Ita Nia Rai " project);  
 
6. Law No. 14/2011 of 28 September 2011, Private Investment Law;  
 
7. Law No. 10/2011 of 14 September 2011, Approves the Civil Code (CC);  
 
8. Ministry of Justice Ministerial Order No. 16/2011 of 27 July 2011, about the Cadastral Survey 
and Data Collection Procedures;  and, 
 
9. Ministry of Justice Ministerial Order No. 23/2011 of 23 November 2011, on Conversion of 
Ownership Statemen ts into Ownership Titles in Undisputed Cases.  
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, a iming 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 following main Laws:  
I. Law on Special Regime for the De finition 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; recognizes 
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 procedures.  
III. Law on the creation of an Immovable Prop erty 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 the 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. 116 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 a lso 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 natural 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  WT/ACC/TLS/3  
 
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  Property belonging to the Private Domain of the State. This legal framework sp ecifically 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 an d 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 procedure 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). Irrespective 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 has 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 co mmerce and industries, and for agriculture;  and, 
(f)   50 years  – land used by International Organizations  and Diplomatic Representations  
The definition of small, medium and large commerce and industries is set 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 tou rism 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 agreem ent 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 United States Agency for International 
Development (USAID) called the Ita Nia Rai proj ect (meaning "our land " in Tetum) from 2008 until  
2012 when USAID handed the project over to the Ministry of Justice.  The cadastral survey WT/ACC/TLS/3  
 
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  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 
ownership 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 c ourts. This database 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 Order 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 c ollected 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 i n Ministerial order 23/2011, 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 cl aims 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 hold er 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 provin g that the registered holder is not 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, the law in Timor -Leste as to acquisition of title in land 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, wh ere there is "a title of purchase, that 
has been registered, " an acquisition of ownership through prescription 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 thei r ownership. In line with Article 53.4 of the Constitution, 
Article 10.5 of Decree -Law No. 27/2011 provides 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 per son who purchases land from the Registered Holder for valuable 
consideration in good faith and who then 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 that 
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 r egistered his "ownership rights" under the 
Ita Nia Rai project and obtained the above mentioned definitive 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 program of cadastral survey. This ongoing 
program of survey and registration will gradu ally 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.  
 WT/ACC/TLS/3  
 
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  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 provision, a person may build and maintain, temporarily or 
perpetu ally, 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 comple ted, 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 surface rights require 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, however, unless otherwise agreed between the parties, the surface righ t 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/TLS/3  
 
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  ANNEX 27(A)  
Business Services  
A. PROFESSIONAL SERVICES  
 
a. Legal Services  861 
 
 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 ) 
sets forth that the legal profession is reserved for those who, until a Timor -Leste Bar 
Associatio n 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 licensed to  practice in another country; (iii) having knowledge of the Timor -Leste 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 yea rs. Also, in accordance with 
the most recent amendments to  the applicable legislation, 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.  
 
b. Accounting, auditing and bookkeeping services  862 
 
 Timor -Leste has not implemented any regulation of acco unting, auditing or 
bookkeeping  services.  
 
c. Taxation Services  863 
 
 Timor -Leste has not passed any laws regulating professional taxation services.  
 
d. Architectural services  8671 
 
 Timor -Leste has not implemented any regulation on architectural services.  
 
e. Engineering services  8672 
 
 Timor -Leste has not passed any laws regulating engineering services.  
 
f. Integrated engineering services  8673 
 
 Timor -Leste has not passed any laws regulating integrated engineering services.  
 
g. Urban planning and landscape  8674 
 
 Timor -Leste has not passed any laws regulating urban planning and landscaping services.  
 
h. Medical and dental services  9312 
 
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 i n 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 opening to the public of 
such health units.  WT/ACC/TLS/3  
 
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  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 requirem ents for the importation, storage, wholesale, retail sale, and exportation of 
medicines for human use.  
i. Veterinary services  932 
 
Timor -Leste has not passed any laws regulating veterinary services.  
j. Services  provided by midwives, nurses, physiotherapists, and para -medical personnel
 93191  
Please refer to paragraph h above.  
k. Other  
 
B. COMPUTER AND RELATED SERVICES  
 
a. Consultancy services related to the installation of computer  
hardware  841 
b. Software implementation se rvices  842 
c. Data processing services  843 
d. Database services  844 
e. Other  845 – 849 
 
Timor -Leste has not passed any laws regulating computer and related services.  
C. RESEARCH AND DEVELOPMENT SERVICES  
 
a. R&D services related to natural sciences  851  
b. R&D services related to social sciences and humanities  852  
c. Interdisciplinary  R&D services  853 
 
Timor -Leste has not passed any laws regulating Res earch and Development Services.  
D. REAL ESTATE SERVICES  
 
a. Involving owned or leased property  821  
b. On a fee or contract basis  822 
 
Timor -Leste has not passed any laws regulating Real Estate Services.  
E. RENTAL/LEASING SERVICES WITHOUT OPERATORS  
 
a. Relating to ships  83103    
b. Relating to aircraft  83104    
c. Relating to o ther transport equipment  83101, 83102,
 83105  
d. Relating to other machinery and equipment  83106 – 83109  
e. Other  832 
 
Timor -Leste has not passed any laws regulating Rental/Leasing Services without Operators.  WT/ACC/TLS/3  
 
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  F. OTHER BUSINESS SERVICES  
 
a. Advertising services   871 
Decree -Law No. 51/2011 of 21 December 2011 approved the Legal Fra mework on Advertising 
Activities, 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 munit ions) as well as a list of products 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 licensing advert ising professionals) is not 
yet regulated.  
b. Market research and public opinion polling services  864 
 
Timor -Leste has not passed any laws regulating market research and public opinion polling 
services.  
c. Management  consulting service  865 
 
Timor -Leste has not passed any laws regulating management -consulting services.  
d. Services related to management consulting  866 
 
Timor -Leste has not passed any laws regulating services related to management consulting.  
e. Technic al testing and analysis service  8676 
 
Timor -Leste has not passed any laws regulating technical testing and analysis services other 
than the statutes mentioned in paragraph A(h) above.  
f. Services incidental to agr iculture, hunting and forestry  881 
 
The United Na tions Transitional Administration in East Timor (UNTAET) Regulation No. 2000/17 
of 10 May 2000 prohibits the explorations and exportation of wood. No other regulations on 
the performance of agricultural, hunting, or forestry activities and ancillary servic es are 
currently in place.  
g. Services incidental to fishing  882 
 
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 activitie s. Foreign natural persons and legal entities cannot obtain licenses 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.  
h. Services incidental to mining  883, 5115  
 
Ministerial Diploma No. 1/2008 of 30 July 2008 (as amended  by Ministerial Diploma 
No. 1/2009, of  12 August 2009) detai ls the procedure to be foll owed for the acquisition of 
(i) Survey Licenses ( "Licenças de Prospeção "), which are granted for the development of 
geological studies of some specific minerals, (ii) Preliminary Licenses ( "Licenças Prévias / 
Preliminares ") which  are granted in cases of large -scale mining for the development of studies 
and works to be carried out prior to the exploration phase, and , (iii) Permanent Licenses 
("Licenças Permanentes "), which are granted for the beginning of the operation of an 
explor ation unit.  
This statute also sets forth the applicable fees, such as (i) the extraction rate ( "Taxa de 
Extração "), i.e. the amount of the levy, which is based on the type of mineral and on the 
quantity of extracted mineral and (ii) licensing rate ( "Taxa d e Licenciamento "), a one -time 
payment due upon the issuing of the license.  WT/ACC/TLS/3  
 
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  A mining code is under discussion and is expected to be approved in the near future.  
Law No. 13/2005 of 2 September approved the Petroleum Activities Law, which sets forth the 
rules applicable to the authorization of petroleum activities. However, it does not include 
provisions on licensing of activities incidental to petroleum exploration and production 
("oilfield  services. ") 
i. Services incidental to manufacturing (except for 88442)  884, 885  
j. Services incidental to energy distribution  887 
k. Placement and supply services of personnel  872 
l. Investigation and security  873 
m. Related scientific and technical consulting services  8675 
n. Maintenance and repair of equipment (not including maritime  
vessels, aircraft or other transport equipment)  633, 8861 -8866 
o. Building -cleaning services  874 
p. Photographic services  875  
q. Packaging services  876  
r. Printing, publishing  88442  
s. Convention services  87909*  
t. Other  8790 
 
Timor -Leste has not passed any laws regulating these services.  
  
                                                
* The (*) in dicates that the service specified is a component of a more aggregated CPC item specified 
elsewhere in this classification list.  WT/ACC/TLS/3  
 
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  ANNEX 27(B) 
Communication Services  
 
Decree -Law No. 15/2012 of 28 May 2012 created the National Communications Authority (NCA), 
the supervisory authority and regulator for this sector. The NCA manages registration of 
telecommuni cations  services providers and of entities that operate telecommunications networks, 
and grants radiofrequency spectrum licenses.  
A. POSTAL SERVICES  7511 
 
Postal Services are governed by Decree -Law No. 17/2004 of 3 November 2004 (Articles 11 and 
12). Under th is statute, Universal Pos tal Services are subject to an exclusivity regime, while other 
services (such as courier services) are open for competition.  
B. COURIER SERVICES  7512 
 
Article 12 of Decree -Law No. 17/2004 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 licensed to conduct their business under the general business regulations and Decree -Law 
No. 17/2004.  
C. TELECOMMUNICATION SERVICES  
 
a. Voice tel ephone services  7521    
b. Packet -switched data transmission services  7523**    
c. Circuit -switched data transmission services  7523**    
d. Telex services  7523**    
e. Telegraph services  7522     
f. Facsimile services  7521**, 7529**    
g. Private leased circuit services  7522**, 7523**    
h. Electronic mail  7523**    
i. Voice mail  7523**    
j. On-line information and database retrieval  7523**  
k. Electronic data interchange (EDI)  7523**  
l. Enhanced/value -added facsimile services, including store and forward, store and retrieve
 7523**  
m. Code and protocol conversion  N/A    
n. Online information and data processing, including transaction processing  843**    
o. Other  
 
Decree -Law No. 15/2012 regulates the provision of telecommunication services in Timor -Leste, 
which are defined as, "Any retail or who lesale service commonly rendered upon payment by the 
user, that consists  primarily or wholly of telecommunications. "  In turn, telecommunications are 
defined  as the "transmission, reception or emission of signals representing  symbols, writings, 
images, sou nds or information of any nature, by means of wires, optical systems, radio electric 
means, and other electromagnetic systems ." 
Whoever wishes to use the radiofrequency spectrum, operate radio equipment,  or provide 
telecommunications or  telecomm unication n etwork services in Timor -Leste, must be granted a 
license 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 n etworks. Established in Article 32 is the NCA 's powers to exempt an operator 
from registration.  
                                                
** The (**) indicates that the service specified constitutes only a part of the total  range of activities 
covered by the CPC co ncordance (e.g.  voice mail is only a component of CPC item 7523).  WT/ACC/TLS/3  
 
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  D. AUDIOVISUAL SERVICES  
 
Timor -Leste has not passed any specific laws regulating audiovisual services.  
a. Motion picture and video tape production and distribution services  9611 
b. Motion picture projection service  9612    
c. Radio  and television services  9613  
Under the Media Law (Law No. 5/2014 of 19 November 2014) radio and television media services 
require a radiofrequency spectrum license granted by the NCA. Article 2 4 of the same statute 
determines that the "participation of foreign individuals or legal persons in the share capital of a 
media corporation may not exceed 30%. " 
d. Radio and television transmission services  7524    
e. Sound recording  N/A    
f. Other  
 
 
  WT/ACC/TLS/3  
 
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  ANNEX  27(C) 
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. However, to date, 
Decree -Law No. 27/2010 is not currently being enforce d. Decree -Law No. 26/2010 of 
22 December 2010 sets forth the rules for the registration of sole entrepreneurs of the 
construction sector. Pursuant to Article 6, only national citizens are able to apply for 
registration as sole en trepreneurs. Decree -Law No. 2/2010 of 18 February 2010 provides for 
special procedures for awardi ng construction works up to US$ 250,000 to local companies with 
registered offices in the sub -districts.  
 
A. General  construction  work for buildings  512 
B. General  construction  work for civil engineering  513 
C. Installation  and assembly  work 514, 516  
D. Building  completion  and finishing  work 517 
E. Other  511, 515, 518  
 
Timor -Leste has not passed any other specific laws regulating the above services.  
  WT/ACC/TLS/3  
 
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  ANNEX 27(D)  
Distribution  Services   
 
A. Commission  agents'  services  621 
B. Wholesale  trade services   622 
C. Retailing  services  631, 632, 6111,  
 6113, 6121  
D. Franchising  8929  
E. Other  
 
Timor -Leste  has not passed any specific laws regulating distribution services.  
 
  WT/ACC/TLS/3  
 
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  ANNEX  27(E)  
Educational Services  
 
A. PRIMARY  EDUCATION SERVICES  921 
 
Decree -Law No. 7/2010 provides for the Legal Framework for the Administration and 
Management of the Basic Education System, containing 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.  
 
B. SECONDARY  EDUCATION SERVICES  922 
 
Decree -Law No. 33/2011 of 3 August 2011  approved the Legal Framework for the 
Administration and Management of the public Secondary Education System.  
 
C. HIGHER  EDUCATION SERVICES  923 
 
Decre e-Law No. 8/2009 of 19 May 2009  sets forth the Legal Framework of the Higher 
Education 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 institution.  
 
D. ADULT  EDUCATION  924 
 
Timor -Leste has not passed any other specific laws regulating these services.  
 
E. OTHER EDUCATION SERVICES  929 
 
Timor -Leste has not passed any other specific laws regulating thes e services.  
  WT/ACC/TLS/3  
 
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  ANNEX  27(F)  
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 licensing procedure depending on the characteristic 
and sector of the project.  
A. Sewage  services  9401 
B. Refuse disposal services  9402 
C. Sanitation and similar services  9403 
D. Other  
Timor -Leste has not passed any other specific laws regulating these services.  
 
 
  WT/ACC/TLS/3  
 
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  ANNEX  27(G)  
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.  
- 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 : 
 
(a) Licensing, supervising and regulating insurance companie s and insurance intermediaries;  
(b) Ensuring the protection of the legitimate interests of policyholders and insurers;  
(c) Defining the standards of conduct for insurance companies and insurance intermediaries by 
means of regulations in the form of instructions; and  
(d) Issuing directives in the form of orders.  
- Permitted e ntities  
Insurance activities can only be carried out by:  
 
(a) Joint  stock  companies  (" Sociedades  Anónimas ")  inco rporated  in  Timor -Leste  
(no foreign ownership restrictions are imposed); and  
(b) Branches of foreign insurance companies  registered in Timor -Leste.  
- Licensing p rocedure  
The application for a license to establish an insurance company shall be accompanied by 
the following documents and information:  
(a) The company Founders Agreement;  
(b) Copy of Articles of Association;  
(c) Copy of Shareholders Agreement, where applicable;  
(d) Organic structure and breakdown of  capital and persons concerned;  
(e) Identification of the members of the corporate bodies; and  
(f) 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:  
(a) Incorporation  of  the  company  in  accordance  with  the  Companies  Law  of  
Timor -Leste  or registration of the branch of a co mpany incorporated in a 
foreign  jurisdiction;  
(b) Subscription and paying -up of the mandatory minimum share capital;  
(c) Preparation of  the company 's business plan on the basis of a sound analysis grounded on  
reasonable assumptions;  
(d) Written commitment to abide by the provisions of Law No. 6/2005;  WT/ACC/TLS/3  
 
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  (e) 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;  
(f) Minimum regis tered capital of US$ 500,000;  
(g) The board of directors must be composed of a minimum of three members, all of which 
must be residents of Timor -Leste;  
(h) Compliance with all the other conditions with respect governance requirements referred to 
in Chapter VIII of  Law No. 6/2005; and  
(i) 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.  
The CBTL may refuse to grant a license where it deems that such a license would undermine 
legitimate interests of future policyholders or insurers. A license 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 manne r. 
- 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 a s 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 product s 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 su ch instruction has been 
published to date. Furthermore, 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 general 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  Inst ruction)  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  Ins urance "  (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 pe r Law No. 6/2005 the CBTL shall, by means of an 
instruction, define the 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 lice nsing 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 provision s 
specifically addressing the performance of accident insurance services.  
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 a re 
no other relevant legal provisions specifically addressing the performance of health insurance 
services.  WT/ACC/TLS/3  
 
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  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 financial protection provided by an insurance 
company to another insurance company. There are no provisions in respect of retrocession or 
other relevant legal provisions specifically ad dressing  the performance of reinsurance  services.  
 
  WT/ACC/TLS/3  
 
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  ANNEX  27(H)  
Financial Services – Services Auxiliary to Insurance  
(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:  
(a) Agents;  
(b) Sub-agents; and , 
(c) Brokers.  
 
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 salary, or a combination of 
both, by the latter. The relationship between the agent and the insurance company shall be 
governed by a written contract, whi ch 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 in surance company. As per the combined provisions of Article 11.2 of Law No. 6/2005 and 
Article 4.1 of Instruction 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 yearly 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 r egistered 
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 co mmission by the insurance company whose insurance policy 
they have sold. Brokers are obliged to keep an up -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 requi rements of each type of 
insurance intermediaries.  
  WT/ACC/TLS/3  
 
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  ANNEX  27(I)  
Financial Services - Banking and Other Financial Services (Excluding Insurance)  
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 between 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 leg al 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 matters.  
- Permission to o perate  
One of the main principles of the regulatory framework is that only financial institutions duly 
licensed by, and registered with, the CBTL are allowed to engage  directly in any financial activity in 
Timor -Leste. In order to be granted  the required license , 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 b anking licenses that the law designates, A, B, 
and C. Such classifications of licenses are directly related to the scope of activities that the holder 
of the given license is allowed to perform in Timor -Leste, as per Section 24 of the Regulation.  
- Capital  requirements  
As  per  Section  4.1  of  the  Regulation,  the  CBTL  is  responsible  for  establishing  the  
minimum regulatory capital for licensed banks, which shall not be less than the equivalent of 
US$2,000,000. The CBTL may increase the minimum cap ital requirements from time to time by 
instruction.  
In accordance with Instruction CPO/B -2000/1, on Applications for Bank Licenses, the minimum 
regulatory capital depends on the classification of the banking license. 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 li cense.  
- 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 fin ancial system. The Regulation deals with a variety of 
aspects relevant for banking institutions, including, amongst others (i) application, issuance, and 
cancelation of banking licenses; (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.  WT/ACC/TLS/3  
 
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  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 with the purpose to provide banking and f inancial institutions operating in the 
country with information relating to existing and prospective borrowers' credit at other banking 
and financial institutions. This system has been seen by the local market players as a vital 
instrument for risk assessm ent 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 
unregulated in Timor -Leste (especially when compared with more developed jurisdictions), there 
are several re gulations that have already been approved by the regulator through the issuance of 
instructions, rules, and guidelines.  
The main instructions so far approved 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) eq uity 
investment; (ix) asset classification; (x) internal control system; (xi) investment in real estate; 
and, (xii) recordkeeping.  
In February 2013, the CBTL issued Guidelines for the Licensing and Operations of Money Transfer 
Operators to encourage the so und 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/or 
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 Deposit Taking Institutions (ODTIs); 
and, (iii) individuals and other entities providing Agent Banki ng services.  
Product specific legislation  
With the exception of a few specific rules applicable to credit lending and the opening and 
maintenance of bank accounts/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, notably the 
CC of Timor -Leste.  
Enforcement and i nvestigation  
The  Regulation  empowers  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 r ules, CBTL may, inter alia, (i) issue written warnings; (ii) execute 
an enforcement agreement with the board of directors providing for a program of remedial 
action(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  license.  
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 CBTL, which then notifies 
the bank to provide information and share its views on the case. Upon completion of the 
investigation procedures, CBTL may simply close the file (if it finds that the financial institutio n 
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.  WT/ACC/TLS/3  
 
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  - Creditor h ierarchy  
Insolvency  
Pursuant to the Regulation, upon liquidation of a bank's assets, the secured 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) Necessary  and  reasonable  expenses  incurred  by  the  receiver  and  the  CBTL,  
including professional fees;  
(b) Deposits up to an amount not e xceeding 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 claims 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 accordance 
with their rights and interests.  
Banking r esolution  
If CBTL determines that a bank is insolvent or must reasonably be ex pected to become insolvent 
within the next 90 days, the CBTL must take possession and control of that bank through a 
receiver. 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 profession al advisor; (f) execute any instrument in the name of the bank, and , 
(g) initiate or defend and conduct in its name in any action or legal proceeding.  
- Bank secrecy  
Pursuant to the Regulation the former and present directors, employees, and agents of bank ing 
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 pr oceeds of banks loans, customers' business 
relationships, and recipients and amounts of payments made by the bank. The secret information 
may only be disclosed to (i) the CBTL (including its inspectors and the auditors appointed by it), 
(ii) external audit ors 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 enga ging 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 dev ises 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.  WT/ACC/TLS/3  
 
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  - Corporate g overnance  
Pursuant to the Regulation, banks shall be managed by a governing board and shall have an audit 
committee. Banks are required to have a risk management committee or separate credit and asset 
and liabili ty 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 b onuses  
Pursuant to Instruction CPO/B -2001/9 on Remuneration of Members of the Governing Board  and 
of Senior Management of Newly Licensed 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 ge neral terms, 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 compa rison 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 conce rns. 
Also, the proposed remuneration shall not be approved by the CBTL if it (i) is expected to 
adversely affect the bank's future earnings prospects or financial condition; or , (ii) is not in line 
with the person's experience and competence. In the specif ic case of the members of the 
governing board, the CBTL shall also not approve the proposed remuneration of 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 li nked to the bank's 
long- term business strategy and its overall financial condition of the bank. Remuneration linked to 
volume, short -term performance or profitability, or excessive risk -taking, shall not be approved by 
the CBTL.  
- Acceptance of deposits a nd 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:  
(a) Banks; and , 
(b) Other deposit -taking Institutions (ODTIs) as licensed in accordance with Instruction 
No. 6/2010.  
The opening and maintenance of bank accounts/deposits are no t yet highly regulated in 
Timor -Leste. The relevant agreements are mainly subject to the few rules pr ovided for in:  
(a) 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  
(b) 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 is working on a new  regulatory framework on the opening and maintenance of bank 
accounts aimed at reinforcing customers ' rights. The new framework is expected to enter 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  below  
comments  apply  to  any  type  of  lending,  i.e.,  regardless  of  whether  the underlyin g 
transaction is consumer credit, mortgage credit, factoring, or financing of commercial transaction.  WT/ACC/TLS/3  
 
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  - 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 2 011, sets forth the general principle of "contractual 
freedom, " according to which parties may, subject to any applicable statutory limits, freely 
establish the contents of contracts, and also enter into contracts different from the types expressly 
provide d 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 principl es (Article 271 of the CC).  
- Mandatory c lauses  
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 purpo se of the credit; (iii) the interest rate; (iv) repayment schedule, including the 
maturity date; (v) other terms and conditions 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 
available to the borrower.  
- Form of loan agreements  
As per Decree -Law No. 45/2012 of 21 November 2012, on the Form of Loan Agreemen ts, loan 
agreements entered into by banking institutions organized in Timor -Leste may be executed by a 
private written document.  
- 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 w hen reviewing a loan. Article 40 of the CC determines that the parties may freely 
choose the law governing their agreements provided that such choice of law corresponds to a 
serious interest of the parties or has a connection with an element of the contrac t 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 entered into between 
banks and its customers in Timor -Leste should be governed by Timor -Leste 's law, unless the 
nature of the eleme nts 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) provisi ons of foreign law are not applicable if they breach the 
fundamental principles of public order of Timor -Leste. However, 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 formal 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 rate 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 inte rest 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 Ar ticle 1066 of the CC is not applicable, as the government has not yet 
approved a statutory interest rate. Notwithstanding, the agreed interest rate should not breach the 
principle of good faith by creating an  excessive and unjustified advantage to the lend er, 
considering the specific circumstances of the market and the loan (Articles 273 to 275 of the CC).  WT/ACC/TLS/3  
 
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  - 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:  
(a) Services providing for the deposit and withdrawal of cash;  
(b) Execution of payments;  
(c) Issuance or purcha se of payment instruments;  
(d) Provision of funds transfer services, and  
(e) 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 licens e entails:  
(a) Payment and collection services; and  
(b) Issuance and m anagement of means of payment (including payment cards, travelers' 
checks  and bankers' drafts).  
- Guarantees and c ommitments  
There  are  no  other  relevant  legal  provisions  specifically  addressing  the  provision  of  
bank guarantees or similar commit ments.  
- 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,  81339**        
certificate of deposits, etc.)    
b. Foreign exchange  81333        
c. Derivati ve products including, but not limited to,  81339**       
futures and options  
d. Exchange  rate and interest rate instruments,  81339**      
including  products such as swaps and forward rate agreements  
e. Transferable securities  81321*      
f. Other negotiable instruments and financial  81339**       
assets, including bullion  
 
In accordance with Section 24 of the Regulation, banks are entitled to:  
(a) Buy and se ll foreign exchange for cash for the account of a customer;  
(b) 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).  WT/ACC/TLS/3  
 
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  There are no other relevant  legal provisions specifically addressing the  services related with 
trading for own account or for account of customers.  
- Participation in 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 spec ifically addressing the services related 
with trading for one 's own account or for the account of customers.  
Instruction CPO/B -2001/2 on Equity Investments of Banks, sets forth that no bank shall hold 
(directly or indirectly) an equity interest in an entit y engaged in activities other than financial 
activities that: (i) represents a significant interest; (ii) or exceeds its net current value, the 
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 authorization from CBTL. Furthermore, banks 
are not allowed to hold (directly or indirectly) equity securities of a b ank 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 da te 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 depository and 
trust services  
In accordance with Section 24.4 (a) and (b) of the Regulation, only Class A Banks are entitl ed to 
provide (i) trust services, including the investment and administration of funds received in trust 
and administration of securities; and (b) provide services as an investment portfolio manager or 
investment adviser.   There are no other relevant lega l 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  respon sible  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 ob tain authorization from the CBTL to operate Payment, Clearing, and 
Settlement Systems.  
As per Article 9.1 of Decree -Law No. 17/2015, all system operators shall lay down written rules 
covering the administration, management, and operation of the systems the y operate. Such rules 
shall cover, at least, (i) liquidity management, (ii) credit risk and settlement, (iii) rules on when a 
payment instruction and settlement are final, (iv) governance and access, (v) emergencies and 
operational risk, (vi) rights and du ties of system participants and operators. However, no legal 
provisions have yet been approved specifically addressing the performance of services such as 
settlement and clearing services for financial assets, including securities, derivative products, and  
other negotiable instruments.  WT/ACC/TLS/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 c orporate 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 or 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.  
- Provision and transfer of financial information, and financial data processing and 
related software by provid ers of other financial services  
There are no relevant legal provisions specifically addressing the performance of such services.  
 
  WT/ACC/TLS/3  
 
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  ANNEX  27(J)  
Health Related a nd Social Services  
A. Hospital  services  9311 
Decree -Law No. 18/2004 of 1 December 2004, on Private Health Services establishes the rules 
on licensing of private hospitals. 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.  
B. Other Human Health Services (other than 93191)  9319 
Decree -Law No. 18/2004 of 1 December 2004, on Private Health Services establishes the rules 
on licensing of private health services, including clinics, dental clinics, etc.. This s tatute 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.  
C. Social Services  933 
D. Other  
Please refer to paragraph 1(h ). 
 
  WT/ACC/TLS/3  
 
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  ANNEX  27(K)  
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 principles to be 
applied to the sector.  
A. Hotels  and restaurants (including catering)  641 – 643 
Timor -Leste has not passed any laws regulating hotel services.  
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 license. Prior to the 
attribution of a license the establishment is subject to inspection.  
B. Travel  agencies and tour operators services  7471 
Timor -Leste has not passed any laws regulating travel agencies and t our operation services.  
C. Tourist guides  services  7472 
Timor -Leste has not passed any laws regulating tourist guide services.  
D. Other  
  WT/ACC/TLS/3  
 
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  ANNEX 27(L)  
Recreational, Cultural and Sporting Services  
 
A. Entertainment services (theatre, live bands a nd circus services)  9619 
B. News agency services  962 
C. Libraries, archives, museums and other cultural services  963 
D. Sporting and other recreational services  964 
 
Decree -Law No. 10/2011 of 16 March 2011 sets forth the Legal Framework of Public Utility of 
Sports Federations , and Decree -Law No. 18/2014 of 24 July 2014, regulates Sport Clubs and 
Companies. Decree -Law No. 6/2009 provides for the Regulation of Recreational and Social 
Gambling , and includes the applicable licensing requirements.  
 
E. Other  
 
  WT/ACC/TLS/3  
 
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  ANNEX 27(M)  
Transport se rvices  
 
A. 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 currently drafting regulations for 
these services with the ass istance of the German Institute  for International Cooperation,  GIZ. 
a. Passenger transportation  7211  
b. Freight transportation  7212  
c. Rental of vessels with crew  7213 
d. Maintenance and repair of vessels  8868**  
e. Pushing and towing services  7214  
f. Supporting services for maritime transport  745**  
 
B. INTERNAL WATERWAYS TRANSPORT  
 
Timor -Leste has not passed any specific laws regulating internal waterways transport services.  
a. Passenger transportation  7221 
b. Freight transportation  7222  
c. Rental of vessels with crew  7223 
d. Mainten ance and repair of vessels  8868**  
e. Pushing and towing services  7224  
f. Supporting services for internal waterway transport  745**  
 
C. AIR TRANSPORT SERVICES  
 
This sector is under the supervision 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 servi ces. Decree -Law No. 5/2006 of 
1 March 2006,  establishes the conditions, requirements, and legal procedure for attribution of 
certification for commercial air transport companies to carry out their activities. This certificate  is 
granted by TLAANA.  
No other statutes further regulating the sector have been enacted.  
a. Passenger transportation  731  
b. Freight transportation  732  
c. Rental of aircraft with crew  734 
d. Maintenance and repair of aircraft  8868**  
e. Supporting services for air transport  746 
 
D. SPACE TRANSPORT  733 
 
Timor -Leste has not passed any specific laws regulating space transport.  WT/ACC/TLS/3  
 
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  E. RAIL TRANSPORT SERVICES  
 
Timor -Leste has not passed any specific laws regulating rail transport services.  
 
a. Passenger transportation  7111  
b. Freight transportation  7112  
c. Pushing and towing services  7113 
d. Maintenance and repair  of rail transport equipment  8868**  
e. Supporting services for rail transport  services  743 
 
F. 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 purpo ses and general principles. The statute  also 
establishes some rules on private and public transport to be further regulated (note that no other 
laws or regulations have been enacted in respect to this sector).  
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.  
a. Passenger transportation  7121, 7122  
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 license 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.  
Timor -Leste has not passed any other specific laws regulating Passenger transportation.  
b. Freight transportation  7123 
Article 20 of Decree -Law No. 2/2003 determines that the legal framework to be regulated shall 
provide for competition and transport safety.  
Timor -Leste has not passed any other specific laws regulating freight transportation.  
 
c. Rental of commercial vehicles with operator  7124 
 
Timor -Leste has not passed any specific laws regulating rental of commercial vehicles with 
operator.  
d. Maintenance and rep air of road transport equipment  6112, 8867  
 
Timor -Leste has not passed any specific laws regulating maintenance and repair of road 
transport equipment.  WT/ACC/TLS/3  
 
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  e. Supporting servi ces for road transport services  744 
 
Timor -Leste has not passed any specific laws regulating supporting services for road transport 
services.  
G. 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 February 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.  
a. Transportation of fuels  7131 
 
Decree -Law No. 20/2 008 of 19 June 2008, which created the NPA and Decree -Law No. 1/2012, 
of 1 February 2012, on the downstream sector, establish that transportation of fuels is subject 
to licensing by the NPA. Decree -Law No. 1/2012 further foresees the approval of more detai led 
regulations on transport of petroleum products; however, to date the NPA has yet to approve 
any such transport regulations.  
b. Transportation of other goods  7139 
 
H. SERVICES AUXILIARY TO ALL MODES OF TRANSPORT  
 
Timor -Leste has not yet passed any specific laws regulating services auxiliar y to all modes 
of transport.  
a. Cargo -handling services  741 
b. Storage and warehouse services  742  
c. Freight transport agency services  748  
d. Other  749 
 
 
 
  WT/ACC/TLS/3  
 
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  ANNEX 28 
Relevant International C onventions R atified by Timor -Leste  
CONVENTIONS  DATE OF RATIFICATION  
United Nations Charter  Parliament Resolution No. 1/2002, 20 May 2002  
HUMAN  RIGHTS  CONVENTIONS  
International Covenant on Civil and Political Rights  Parliament Resolution No. 3/2003, 25 May  
International Covenant on Economic, Social and 
Cultural Rights  Parliament Resolution No. 8/2003, 17 September  
Convention against Torture and other Cruel, 
Inhuman or Degrading Treatment or Punishment  Parliament Resolution No. 9/2003, 17 September  
Intern ational Convention on the Elimination of All 
Forms of Racial Discrimination  Parliament Resolution No. 10/2003, 17 September  
Convention on the Elimination of All Forms of 
Discrimination against Women  Parliament Resolution No. 11/2003, 17 September  
Optional Protocol - Convention on the Elimination 
of All Forms of Discrimination against Women  Parliament Resolution No. 12/2003, 17 September  
Second Optional Protocol to the International 
Covenant on Civil and Political Rights – abolition of 
the dead pen alty Parliament Resolution No. 13/2003, 17 September  
Optional protocol to the International Covenant on 
Civil and Political Rights  Parliament Resolution No. 15/2003, 30 July  
Convention on the Rights of the Child  Parliament Resolution No. 16/2003, 30 J uly 
Optional Protocol to the Convention on the Rights 
of the Child o n the sale of children, child 
prostitution and child pornography.  Parliament Resolution No. 17/2003, 17 September  
Optional Protocol to the Convention on the Rights 
of the Child o n the in volvement of children 
in armed conflict . Parliament Resolution No. 18/2003, 17 September  
The Refugee Convention and Protocol  Parliament Resolution No. 20/2003, 13 September  
International Convention on the Protection of the 
Rights of All Migrant Workers and Members of 
Their Families  Parliament Resolution No. 23/2003, 26 September  
ILO CONVENTIONS  
ILO Convention No. 29 - Forced Labour 
Convention.  Parliament Resolution No. 10/2009, 8 April  
ILO Convention No. 87 - Freedom of Association 
and Protection of the Right to Organize Convention  Parliament Resolution No. 7/2009, 25 March  
ILO Convention No. 98 Right to Organize and 
Collective Bargaining Convention.  Parliament Resolution No. 8/2009, 25 March  
ILO Convention No. 182, Worst Forms of Child 
Labour Convention.  Parliament Resolution No. 9/2009, 8 April  
ILO Convention No. 100, Equal Remuneration 
Convention  Parliament Resolution No. 12/2015, 5 August  
ILO Convention No. 111 Discrimination 
(Employment and Occupation) Convention,  Parliament Resolution No. 11/2015, 5 August  
ENVIRONMENTAL  CONVENTIONS  
The United Nations Framework on Climate Change  Parliament Resolution No. 7/2006, 26 April  
United Nations Convention to Combat 
Desertification  Parliament Resolution No. 8/2006, 26 April  
Convention on Biological Diversity  Parliament Resolution No. 9/2006, 26 April  
Kyoto Protocol  Parliament Resoluti on No. 6/2008, 07 May  
The Vienna  Convention  for the Protection of 
the Ozone  Layer and Protocols  Parliament Resolution No. 30/2009, 09 September  
OTHER  CONVENTIONS  
Anti-Personnel Mine Ban Convention  Parliament Resolution No. 15/2002, 14 November  
Convention on the prohibition of bacteriological 
and toxin weapons  Parliament Resolution No. 16/2002, 14 November  
Treaty on the Non -Proliferation of Nuclear 
Weapons (NPT) – UNODA  Parliament Resolution No. 17/2002, 14 November  
1949 Geneva Conventions and Protocols  Parliament Resolution No. 18/2002, 13 December  WT/ACC/TLS/3  
 
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  CONVENTIONS  DATE OF RATIFICATION  
Convention on the Prohibition of the Development, 
Production and Stockpiling of Chemical Weapons 
and Their Destruction  Parliament Resolution No. 19/2002, 13 December  
Vienna Convention on Diplomatic Relations  Parliament Resolution No. 24/2003, 19 November  
Vienna Convention on Consular Relations  Parliament Resolution No. 24/2003, 19 November  
Vienna Convention on the Law of the Treaties  Parliament Resolution No. 5/2004, 28 July  
Framework Convention on Tobacco Control  Parliament Resolution No. 13/2004, 29 Decembe r 
International Coffee Agreement  Parliament Resolution No. 23/2008, 22 October  
The United Nations Conventions against 
Corruption  Parliament Resolution No. 25/2008, 10 December  
Additional Protocol to the  Geneva Conventions  of 
12 August 1949, and relating to the Adoption of 
an Additional Distinctive  Emblem  Parliament Resolution No. 22/2009, 10 June  
Convention on Transnational Organized Crime  Parliament Resolution No. 26/2009, 09 September  
Additional Protocol to the Convention on 
Transna tional Organized Crime against the 
Smuggling of Migrants by Land, Sea and Air.  Parliament Resolution No. 27/2009, 09 September  
Hague The Hague Convention on the Protection of 
Children and Co -operation in Respect of 
Intercountry Adoption  Parliament Resolution No. 28/2009, 09 September  
Additional Protocol to the Convention on 
Transnational Organized Crime to Prevent, 
Suppress and Punish Trafficking in Persons, 
especially Women and Children   Parliament Resolution No. 29/2009, 09 September  
The United  Nations Conference for the Adoption of 
a Convention against Illicit Trafficking of Narcotic 
Drugs and Psychotropic Substances  Parliament Resolution No. 2/2014, 29 January  
International  Convention  for the Suppression of 
the Financing  of Terrorism  Parliame nt Resolution No. 3/2014, 29 January  
United Nations Convention on the Law of the Sea  Parliament Resolution No. 17/2012, 27 December  
UNESCO Convention for the Safeguarding of the 
Intangible Cultural   Parliament Resolution No. 6/2016, 18 May  
UNESCO Convention  Concerning the  Protection of 
the World Cultural and Natural Heritage  Parliament Resolution No. 7/2016, 18 May  
UNESCO Convention  on the Protection and 
Promotion of the Diversity  Parliament Resolution No. 8/2016, 18 May  
International Centre for Settlement of Investment 
Disputes  Parliament Resolution No. 14/2016, 31 August  
International C onvention against Doping in 
the Sport  Parliament Resolution No. 2/2017, 01 February  
 
  WT/ACC/TLS/3  
 
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  ANNEX 29 
International Organization s and Courts  
INTERNATIONAL  ORGANIZATION  
AND  COURTS  DATE OF RATIFICATION  
International Criminal Court Statute  Parliament Resolution No. 13/2002, 13 August  
Admission to International Monetary Fund  Parliament Resolution No. 11/2002, 15 July  
Admission to the International Bank for 
Reconstruction and Development   Parliament Resolution No. 11/2002, 15 July  
Admission to the International Finance Corporation  Parliament Resolution No. 11/2002, 15 July  
Admission to the International Development 
Association  Parliament Resolution No. 11/2002, 15 July  
Multilateral Investment Guarantee Agency  Parliament Resolution No. 11/2002, 15 July  
Admission to the Asian Development Bank  Parliament Resolution No. 11/2002, 15 July  
International Maritime Organization  Parliament Resolution No. 10/20 04, 11 November  
World Tourism organization  Parliament Resolution No. 11/2004, 11 November  
International Civil Aviation  Parliament Resolution No. 12/2004, 11 November  
World Meteorological Organization  Parliament Resolution No. 5/2009, 11 March  
International Telecommunications Union  Parliament Resolution No. 5/2009, 25 March  
ILO Constitution  Parliament Resolution No. 5/2015, 13 May  
Constitution of UNESCO  Parliament Resolution No. 3/2017, 01 February  
  WT/ACC/TLS/3  
 
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  ANNEX 30 
Regional Organization s 
ASEAN – Association of Southeast Asia Nations  
The Treaty  of Amity  & Cooperation in Southeast 
Asia, and its amendments  Parliament Resolution No. 4/2012, 15 February   
EU – European Union  
Short-stay visa exemption  agreement , Parliament Resolution No. 10/2015, 5 August   
CPLP – Community of Portuguese Speaking Countries  
CPLP Constitutive Declaration  Parliament Resolution No. 23/2009, 10 June   
International Portuguese Language Institute  Parliament Resolution No. 10/2016, 15 June   
Cooperation protocol in the area of Defence  Parliament Resolution No. 12/2012, 27 June   
Convention to transfer condemned people within 
the CPLP countries  Parliament Resolution No. 5/2010, 10 February  
CPLP Statutes  Parliament Resolution No. 14/2010, 16  June  
Agreement on audio -visual and cinema  Parliament Resolution No. 15/2010, 16 June   
Agreement on Consular Relations  Parliament Resolution No. 16/2010, 16 June   
CPLP Parliament Assembly  Parliament Resolution No. 22/2010, 03 November  
Agreement on Visa concessions to students  Parliament Resolution No. 11/2009, 06 May  
Agreement of Cooperation on the Combat of 
Malaria  Parliament Resolution No. 12/2009, 06 May  
Convention on Mutual Assistance in Criminal Areas  Parliament Resolution No. 13/2009, 06 May  
Orthographic Agreement  Parliament Resolution No. 14/2009, 06 May  
Modificative Protocol to the Orthographic 
Agreement  Parliament Resolution No. 19/2009, 06 May  
Second Modificati ve Protocol to the 
Orthographic  Agreement  Parliament Resolution No. 18/2009, 06 May  
Extradition Convention  Parliament Resolution No. 15/2009, 06 May  
Network on judiciary cooperation  Parliament Resolution No. 16/2009, 06 May  
Protocol of Co operation in the area of 
Public  Security  Parliament Resolution No.  17/2009, 06 May  
 
  WT/ACC/TLS/3  
 
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  ANNEX 31 
Bilateral Agreement s 
AGREEMENTS  DATE OF RATIFICATION  
Agreement with Holy Sea  Parliament Resolution No. 18/11 November  2015 
Portugal – to create the Portuguese Scholl  Parliament Resolution No. 09/ 5 August  2015 
Germany – cooperation agreement  Parliament Resolution No. 5/7 May  2008 
Indonesia – visa exemption for diplomatic 
passports  Parliament Resolution No. 6/ 18 June  2014 
Indonesia  - Traditional border crossing and 
regulated markets  Parliament Resolution No. 21/2 May  2009 
Japan – Cooperation agreement on training and 
formation  Parliament Resolution No. 5/26 March  2014 
Spain – Cooperation agreement  Parlia ment Resolution No. 19/14 July 2010 
Australia – Timor Sea Treaty between the 
Government of East Timor and the Government of 
Australia.                                                                                       Parliament Resolution No. 2/ 1 April  2003 
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 No. 5/08 March  2007 
Brazil – cooperation agreement  Parliament Resol ution No. 9/11 November  2004 
USA – cooperation agreement  Parliament Resolution No. 2/ 3 January 2003 
Angola – General Agreement on Economic, 
Commercial, Technical, Scientific and Cultural 
Cooperation between the Democratic Republic of 
Timor -Leste and the Republic of Angola  Government Resolution No. 12/05 August  2009 
 
  WT/ACC/TLS/3  
 
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  ANNEX 32 
Bilateral Investment Treaties  
COUNTRY  TREATY  
Portugal  Entered into force on 7 April 2004  
Portugal  Agreement Concerning the Encouragement and Reciprocal Protection of Investments,  
approved by Government Resolution No. 2/ 28 January  2004 
Qatar  Signed on 10/08/2005, (not ratified)  
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 Democrati c 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  Signed on 21  January 2012, (not ratified)  
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/  16 March  2011 
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 
Cambod ia MoU on Economic, Commercial and Technical Cooperation between the Government of the 
Democratic Republic of Timor -Leste and the Government of the Kingdom of Cambodia, signed 
on 5 September 2013 
USA Agreement for Economic and Technical Cooperation between the  Government of the United 
States of America and the Government of the Democratic Republic of Timor -Leste, approved 
by Pa rliament Resolution No. 19/  24 December  2004 
 
 
__________