RESTRICTED  
  
WT/ACC/COM/14  
7 October  2016 
(16-5432) Page: 1/71 
Working Party on the Accession  
on the Union of the Comoros  Original:  French  
 
  ACCESSION OF THE COMOROS  
QUESTIONS AND REPLIES TO THE MEMORANDUM  
ON THE FOREIGN TRADE REGIME  
(Document WT/ACC/COM/3)  
 In a communication dated 2 March  2007, circulated as WT/ACC/COM/1, the government  of 
the Union of the Comoros applied for accession to the  World Trade Organization  (WTO) under the 
provisions of Article  XII of the WTO Agreement . The terms of reference of the Working Party are 
reproduced in document WT/ACC/COM/2 . In document WT/ACC/COM/3, Members had been invited 
to submit questions in writing  concerning the foreign trade regime  of the Comoros . The questions 
submitted by Members and the replies thereto provided by the government  of the Union of the 
Comoros are reproduced hereunder.  
 
 Delegations wishing to raise additional questions concerning the foreign trade regime  of the 
Comoros might inform the delegation of Comoros (with a copy to the Secretariat) of such 
questions in advance of the meeting of the Working Party, so that considered replies can be made 
available b y the government  of the Como ros to Members at the time of the Working Party 
meeting.  
 
_______________  
 
 WT/ACC/COM/14  
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  TABLE OF CONTENTS  
I. INTRODUCTION  ................................ ................................ ................................ .........  4 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE  ................................ ............  9 
1. Economy  ................................ ................................ ................................ .....................  9 
(a) General Description  ................................ ................................ ................................ ..... 9 
(b) Current economic situation  ................................ ................................ .........................  11 
2. Economic policies  ................................ ................................ ................................ ........  13 
(a) Main directions of the ongoing economic policies  ................................ ...........................  13 
(b) Monetary and fiscal policies  ................................ ................................ ........................  17 
(d) Foreign and domestic investment policies  ................................ ................................ ..... 23 
(e) Competition policies  ................................ ................................ ................................ ... 25 
3. Foreign trade in goods and services  ................................ ................................ ..............  26 
4. Domestic trade in services  ................................ ................................ ...........................  27 
6. Information on growth in trade in goods and services over recent years and  forecasts 
for years to come  ................................ ................................ ................................ ..............  28 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES  ................................ ...................  29 
1. Powers of executive, legislative and judicial branches of government  ................................  29 
2. Government en tities responsible for making and implementing policies affecting 
foreign trade  ................................ ................................ ................................ ....................  31 
3. Division of authority between central and sub -central governments  ................................ .. 33 
4. Any legislative  programmes or plans to  change the regulatory regime  ...............................  33 
5. Laws and legal instruments  ................................ ................................ ..........................  34 
IV. POLICIES AFFECTING TRADE IN GOODS  ................................ ................................  34 
1. Import regulations  ................................ ................................ ................................ ...... 34 
(a) Registration requirements for engaging in importing  ................................ ......................  34 
(b) Characteristics of the national tariff  ................................ ................................ .............  38 
(c) Tariff quotas, tariff exemptions ................................ ................................ ....................  43 
(d) Other duties and char ges ................................ ................................ ...........................  44 
(e) Quantitative export restrictions  ................................ ................................ ...................  44 
(f) Import licensing procedures  ................................ ................................ ........................  45 
(h) Customs valuation  ................................ ................................ ................................ ..... 46 
(i) Other customs formalities ................................ ................................ ............................  48 
(k) Application of internal taxes on imports  ................................ ................................ ........  49 
(l) Rules of origin  ................................ ................................ ................................ ............  51 
(n) Countervailing duty regime  ................................ ................................ .........................  51 
(o) Safeguard regime  ................................ ................................ ................................ ...... 53 
2. Export regulation  ................................ ................................ ................................ ........  53 
(b) Customs tariff nomenclature, types of duties, duty rates, weighted average of rates  .........  53 WT/ACC/COM/14  
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  (d) Export licensing procedures  ................................ ................................ ........................  53 
(f) Export financing, subsidy and promotion policies  ................................ ............................  54 
(g) Export performance requirements  ................................ ................................ ...............  55 
(h) Import duty drawback schemes  ................................ ................................ ..................  56 
3. Internal policies aff ecting foreign trade in goods  ................................ .............................  56 
(a) Industrial policy  ................................ ................................ ................................ ........  56 
(b) Technical regulations and standards  ................................ ................................ ............  58 
(c) Sanitary and phytosanitary measures  ................................ ................................ ..........  58 
(e) State trading practices  ................................ ................................ ...............................  60 
(h) Trade -related environmental policies  ................................ ................................ ...........  60 
(l) Government procurement practices  ................................ ................................ ..............  61 
(m) Regulation of trade in transit  ................................ ................................ .....................  61 
4. Policies affecting foreign trade in agricultural products ................................ .....................  61 
(a) Imports  ................................ ................................ ................................ ....................  61 
(d) Export credits, export credit guarantees or insurance programmes  ................................ .. 63 
5. Policies affecting foreign trade in other sectors  ................................ ...............................  63 
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIME  ................................ ...............  64 
1. Overview  ................................ ................................ ................................ ...................  64 
(a) Intellectual property policy  ................................ ................................ .........................  64 
(b) Agencies responsible for policy formulation and implementation  ................................ ...... 65 
(c) Membership of international intellectual property conventions and of regional or 
bilateral agreements  ................................ ................................ ................................ .........  65 
(d) Application of national and MFN treatment to foreign nationals  ................................ ....... 66 
2. Substantive standards of protection  ................................ ................................ ..............  66 
(a) Copyright and related rights  ................................ ................................ .......................  66 
4. Enforcement  ................................ ................................ ................................ ..............  66 
(b) Provisional measures  ................................ ................................ ................................ . 66 
(c) Administrative procedures and remedies  ................................ ................................ ...... 66 
(e) Criminal procedures  ................................ ................................ ................................ ... 67 
VI. TRADE -RELATED SERV ICES REGIME  ................................ ................................ ....... 68 
1. Overview  ................................ ................................ ................................ ...................  68 
VII.  INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH 
THIRD COUNTRIES  ................................ ................................ ................................ .........  71 
1. Bilateral or plurilateral agreements relating to for eign trade in goods and trade in 
services  ................................ ................................ ................................ ...........................  71 
2. Economic integration, customs union and free trade agreements  ................................ ...... 71 
 WT/ACC/COM/14  
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  QUESTIONS AND REPLIES TO THE MEMORANDUM ON THE  
FOREIGN TRADE REGIME OF THE COMOR OS 
WT/ACC/COM/3 – ENGLISH VERSION  
I. INTRODUCTION  
Question 1 
Paragraph 5 of document WT/ACC/COM/3 : What is the most current annual GDP 
per capita of the Comoros?  
Reply : 
In 2015:  
GDP at current market prices : 589 million  dollars  ($589  million ) 
Exchange rate : 1 US$ = 438 .006 KMF  
Population : 800,000 inhabitants ( projection, 2015  census ) 
GDP per inhabitant : US$737 per inhabitant . 
Question 2  
Paragraph 6 : In light of the Comoros' modest economy, including structural handicaps, a 
narro w manufacturing base, and a "wafer thin" export base, what specific reforms will 
the government undertake to address these "handicaps" through the WTO accession 
process?  
Reply : 
The Union of the Comoros  is engaged in the process of drawing up an Accelerated  Growth and 
Sustainable Development Strategy  (SCA2D , see document WT/ACC/COM/13  No.1), to replac e the 
Growth and Poverty Reduction Strategy Paper  (DSCRP) . In February  2013 it also adopted  a new 
trade policy together with a road map . This new policy incorpo rates measures to improve the 
macro -economic framework , intensify the dynami zation and diversification of the production 
system , attract  foreign direct investment , and encourage  private  initiatives and import substitution 
measures with a view to redressing  the trade balance , especially  in food products , by rationali zing 
customs tariffs . A programme to improve the business climate and a policy aimed at diversif ying 
the economy and the sources of growth  (fishing, agri-food, tourism, ICT ) have been initiated . 
Additional measures to be implemented by the government with a view to alleviating the 
constraints in terms of economic infrastructure  and factor costs that are preventing  its economy  
from becoming more competitive are also contained in the road map which,  as the accession  
process evolves, will take over such matters as improvements in competitiveness  and producti ve 
capacity building , while improving the export base in the processing and preserving industry and 
certification  sectors  (vanill a sugar , salt, standard/bio -honey , essential oils , cash products  and 
fisher ies products ). 
These measures are also designed to take advantage of the GAFTA, COMESA and OCI agreements . 
Question 3 
Paragraph 12 : The MFTR states that "The International Monetary Fund (IMF) and th e 
World Bank agreed on 17 and 20  December respectively that Comoros had reached 
Completion Point under the Enhanced Heavily Indebted Poor Countries (HIPC) 
Initiative."  
 What year did the IMF and World Bank agree that Comoros had reached 
Completion Point und er the HIPC Initiative?  WT/ACC/COM/14  
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Reply : 
 
The Union of the  Comoros  reached Completion Point under the HIPC Initiative at the end of 
December  2012. 
Question 4  
Paragraph 14 : What is the role of WTO accession in the Comoros' regional integration 
strategy ? How will the  Comoros ensure that its regional integration strategy complies 
with the WTO Agreements ? In addition to COMESA, does Comoros belong to other 
trade -related bilateral or plurilateral agreements ? If so, what are the names and nature 
of such agreements?  
Reply : 
Regional integration is a stage in the strategy of integration  into the multilateral trading system . 
COMESA was established in accordance with Article XXIV of the WTO . That is to say, the rules that 
govern COMESA  are, up to a certain point, no different f rom those of the WTO . By observing 
WTO rules, the Comoros  will facilitate their integration into the regional i nitiatives in which they 
participate, since the regional agreements  have been drawn up in co nformity  with WTO rules and 
often refer to the variou s WTO Agreements . Accession to the WTO  will make it possible to speed 
up the process of re gional  integration of the Union of the Comoros  into COMESA.  
In addition to its membership of COMESA, the Union of the Comoros  is a member of the 
Organisation  of Islam ic Cooperation  (OIC), whose member States concluded an Economic, 
Technical and Trade Cooperation Agreement, which  Comoros  ratified in 1982.  
The Union of the Comoros  has also joined the Indian Ocean  Commission  (IOC) . The IOC States 
share the following chara cteristics : isolation, narrow markets  (except  for Madagascar), 
environmental  fragilit y, expos ure to natural disasters , and a common identity . The IOC  is a major 
asset for defending the interests of island states at regional and international  levels . 
The IOC priorit ies which the government  of the Union  of the Comoros  would like to exploit better 
in order to access various markets are : (1) diplomati c cooperation , (2) economic and trade 
cooperation , (3) cooperation in the areas of agricu lture, fishing and conservation of resources, 
(4) cooperation in the cultur al, scientifi c and technical fields and in education and justice, and 
(5) promotion of the Indian -Ocean identity . Objectives  (2) and (3), in particul ar, are viewed  as 
high priorities by the govern ment, si nce despite the economic and trade cooperation agreements 
between the member States of the IOC , there has been no increase in Comoros ' exports to the 
other member countries . 
The agreements with OIC, GAFTA and IOC were not drawn up in conformity with Articl e XXIV of 
the GATT and the Enabling Clause . 
Question 5  
Paragraph 15 : How does the Comoros account for the failure of its energy sector's 
private foreign company and the absence of any other successor ? Was there only one 
such private company ? If so, why doe s the Comoros believe that there was not more 
private sector participation ? Please provide a copy to Members of the Comoros 
investment laws, including any that are specific to the energy sector.  
Reply : 
Following  independence and up to the middle of the 19 90s electricity in the Comoros  was provided 
by a State -owned company Water and Electricity of the  Comoros  (EEDC) . After a management 
failure in  1996, the State decided to privatize the company, which became Comorian  Water and 
Electricity  (CEE) . This company , a subsidiary of the Vivendi  Group , was unable to meet the 
specifications . Accordingly, in the government 's view, the  Vivendi  Group  had not achieved  the WT/ACC/COM/14  
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  desired objectives . This situation revealed the failings of the private sector . In January  2002, the 
contra ct between the  CEE and the Comorian  State was cancelled and the state of the company is 
not arousing any enthusiasm among private investors, since it needs extensive  restructuring . 
For the  moment, the Comor os government  is in the process of restructur ing MAMWE and the EDA 
and making them viable , in collaboration with its partners , the AfDB , the World Bank  and the IDB , 
prior to any private sector participation.  
The legal framework for investment  in general , including in the energy sector, consists only of the 
Investment  Code ( see document WT/ACC/COM/12  No. 1). There is no specific law on energy . 
Question  6 
Paragraph 17 : What is the time -frame within which the Comoros government plans to 
privatize Comores Télécom  and Société Comores Hydrocarbures  (hydroca rbons)?  
Reply : 
The government  of the Union of the Comoros  is engaged in a process  of privati zation of 
Comoros  Télécom (CT), by means of a restructur ing of its activit ies aimed at transferring its assets 
to a new ad hoc private company and opening up 51 % of the latter 's equity to private investors . 
The other shareholders would be the  government  (34%) and the employees of CT (15%). The 
government  has begun opening up in the field of telecommunications . The Madagascan 
telecommunications company TELMA  took over  certain activities at the end of 2015.  
With regard to the  SCH and other State -owned enterprises , the government  is reviewing their 
current situation . It will proceed to carry out in -depth studies , outline its vision and then decide on 
the action to be tak en. 
 
Question 7  
Paragraph 18 : Please submit to the Working Party Comoros' 2007 Investment Code, the 
COMESA Common Investment Area, and the National Investment Promotion Agency.  
Reply : 
Investment Code appended plus the decree establishing the ANPI (see document 
WT/ACC/COM/12  No. 2). The COMESA CIA  protocol has not yet been ratified and therefore is not 
yet applicable.  
Paragraph 18 : By what means is the government promoting exports ? What is the role of 
the private sector in this undertaking?  
 
Reply : 
The gover nment  has equipped itself with a national  export  promotion  strategy by : 
 Setting up the National  Investment Promotion  Agency with the dual mandate of promoting 
investment and trade ; 
 
 Implementing the project to improve the comp etitiveness of exports  in the vanill a, clove and 
ylang -ylang  subsectors . This project is aimed at improving the comp etitiveness of these 
three  Comorian  export subsectors by building the institution al and technical capacities of the 
individual producers, traders and exporters , as well a s those of the enterprises concerned , 
thereby preparing them to play a more active role in the marketing of their products  on the 
internationa l markets  and take greater advantage of the potential benefits of international  
trade . The project will involve structur ing the players through production and marketing 
cooperatives or economic interest groups , as appropriate for the parties ; 
 
 Setting up a national  fishing company for exporting fisher ies products ; WT/ACC/COM/14  
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 Setting up a Fisher ies Product C ertification Office  (OCPH) ; 
 
 Setting up a customs origin  bureau to authenti cate and issue certificat es of origin ; 
 
 Continuing with the implementation of an SPS capacity building project . This project is 
intended to establish a national SPS system capable of supporting and acco mpanying the 
country 's agricultural export development strategies ; 
 
 The Union  of Chamb ers of C ommerce , as a private sector organization acting as interface 
between the government  and the private sector, has  trade promotion  tools at its disposal . 
Moreover, the road map of the trade policy document  provides for the implementation of the 
following export promotion measures : 
1. Facilit ating export  procedures : by reducing the number of documents required at 
exportation to one or two only and identif ying a single  office per island as responsible for 
processing those documents.  
2. Enabling financial institutions based in the Comoros  to open and maintain foreign currency 
accounts for exporters.  
3. Studying the potential of the Chinese market.  
4. The government  must negotiate with the carriers to reduce the air freight costs applied to 
Comorian  exports and bring them down to a competitive level . 
Question  8 
Paragraph 21 : What policy tools will the government use to attract a greater volume of 
foreign direct investment in the tourism and fisheries sectors?  
Reply : 
General: 
 The setting up of a National  Investment  Promotion Agency with the task of promoti ng, 
facilitati ng and monitoring  invest ment in all sectors and more particularly growth sectors, 
especially fisheries and tourism ; 
 The establishment of a business climate improvement programme ; 
 Measures to encourage capital inflow ; 
 Equal treatment for foreign and domestic investors ; 
 Incentive re gimes that provide for tax relief; 
 Labour regulations that tally with internationa l standards ; 
 Ratification of the MIGA Convention to guarantee all investments.  
For fisheries : 
 Tax exemption for import ed fishery inputs ; 
 Enactment of the c ode and adoption of the fisheries strategy . 
For tourism : 
 Existence of a Master Plan for the developme nt of the sector ; 
 Existence of protected areas listed for tourism and cultural development ; 
 Existence of an eco -tourism development project, aimed at increasing the attractiv eness o f 
"Comoros " as a destination , through eco -tourism and cultural produ cts inv entori ed, 
promoted and recognized in accordance with the aspirations of the target  commun ities in 
and around three protected areas ; 
 The Tourism Law (see document WT/ACC/COM/12  No. 3) made it possible to establish  the 
Comoros  National Tourism  Board  (ONTC)  WT/ACC/COM/14  
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  (see document WT/ACC/COM/12  No. 4) (Missions : promotion & marketing of the destination 
"Comoros" ). 
Question 9 
Paragraph 22 : Please provide the details of the Comoros' commitment to the Diagnostic 
Trade Integration Study . Please provide a copy of this study to the Working Party . 
Please describe the resources available under Window 1.  
Reply : 
For details of the Comoros ' commitment with respect to  the Diagnostic Trade Integration Study  
(DTIS) (see document WT/ACC/COM/13  No. 2) 
The integration of the DTIS recomme ndations into the Growth and Poverty Reduction Strategy 
Paper  (DSCRP) , now the SCA2D , is an important  stage in the government 's commitment to the  
DTIS with a view to mobilizing re sources for its financing . The DSCRP is of the utmost importance  
for the deve lopment partners , who have to align their  ODA on the priorities set out by the 
government  in this multi-annual  document ( for the Comoros  DSCRP 2010 -2014).  
Trade features as a priority sector in the final  DSCRP.  
The recommendations of the Diagnostic Trade I ntegration Study  are incorporated in the DSCRP 
under the following references : 
Strategic focus  1: To stabilize the economy and lay the foundations for strong equity -based 
economic growth.  
 Programme 1.2 : Integration and  facilitation of domestic and foreign trade.  
Strategic focus  2: To strengthen the growth sectors by emphasizing institution al capacity building  
and the increased participation of private economic operators : 
 Programme 2.1 : Support for the organi zation of the private  sector; 
 Programme  2.4: Support for the cre ation of a favourable environment for the 
development of the agricultural sector;  
 Programme 2.5 : Revival of agricultural and agri-food production ; 
 Programme 2.9 : Support for the development of the tourism sector.  
The Comoros ' DTIS was drawn u p in 2007 and is in the process of being updated during 2014 
(copy to be provided ). One million  five hundred  thousand  dollars is available under Tier 1 of the 
EIF in two phases,  the first of which end ed in April 2014. The first phase of this Window amount ed 
to 1,100,000 dollars . The second phase began in June 2014 with a sum of 600,000 dollars.  
Question 10 
Paragraph 23 : Please describe the conditions for gaining access to Window 1 and 
Window 2 in the context of the Enhanced Integrated Framework?  
Reply : 
In accordance with the challenges in terms of trade capacity building identified by the DTIS , the 
government  defines the five -year plan for the implementation of the EIF and sets up  the 
National  Implementation Unit . On this basis, the Focal Point establishes t he action  plan and needs 
of the National Implementation Unit  and formul ates the Tier 1 proposals in support of th at action  
plan. This draft is evaluated  and approved by a Tier 1 Evaluation  Committee . When this stage is 
complete,  the T1 draft is submitted f or review and approval by the Executive Secretariat and 
financial due diligence by the Fund Manager is requested . Financing authorization is then granted 
by the Executive Director under  a delegation of powers from the IF Board  once it has approved the 
draft. WT/ACC/COM/14  
- 9 - 
  In the case of T ier 2, intended to finance sectoral projects or small start -up projects  (feasibility 
studies, for example ), DTIS recommendations to correct the constraints impeding the development 
of international  trade are issued . 
The requesting g overn ment, through its National  Steering Committee, determines actions by order 
of priority , on the basis of the DTIS /action  matrix and the five -year plan for the implementation of 
the EIF . The Focal  Point, which  supervises the N ational  Implementation Unit , aided by the donor 's 
Facilitator , the Executive  Secretariat and selected partners,  formul ates projects with account for 
the DTIS /action matrix priorities . A Tier 2 Evaluation  Committee  (CEC 2) , compos ed of the 
Focal Point/ National  Implementation Unit  – Donors ' Facilitat or – Minist ry of Finance /Planning , the 
private sector beneficiary and the N ational  Steering Committee , assesses the proposal and 
approves the proposal and the EIF five -year implementation plan. 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE  
1. Econom y 
(a) General Description  
Question 11  
Paragraph 26 plus others : The importance of remittances appears to be inconsistent . 
Paragraph 53 says they are "almost 20 % of GDP" ; paragraph 206 say s they are 23.2 % 
of GDP ; paragraph 217 says they are 20 %; and paragraph 223 says they are 15 %. 
Please provide the correct figure.  
Reply : 
In 2014 : Transfer s from the diaspora evaluated at  117 million  euros or 26% of GDP  (Source : BCC, 
Envois de fonds de la d iaspora aux Comoros ). 
Question  12 
Paragraph 42 says that:  
"The fisheries sector is not commercially significant and remains a small -scale industry 
serving the needs of local consumption."  
 Could the government explain why this is so?  
Reply: 
This relates to the pre -2007 view . Prior to that year , the fisheries sector was regarded as a 
small -scale subsistence activity . However, the diagnostic analysis of the sector carried out in 2007 
demonstrated the existence of a potential  for develop ment. The GPRSP  therefor e raised fisheries  
to the status of a growth sector and a means of leveraging socio -economic development . 
Nevertheless , fishing faces material, technical and human constraints mainly determined by : 
 Poor support  services and sectoral management and planning  capacities ; 
 Modest  global  production  capacities ; 
 Inadequate product storage and distribution  facilities ; 
 The lack of electricity and water at most fishing sites and their high cost ; 
 Difficult access to the more promising markets ; 
 The elasticit y of the dem and and the extreme variability of the prices , depending on the 
season ; 
 Absence of an organized marketing network.  WT/ACC/COM/14  
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  • Fragmentary knowledge of the resource  
The potenti al of 33,000 tonnes per year was estimated by the FAO in 1970 , on the basis of 
estimates o f the productivity of waters similar to those around the Comoros . Moreover, thunnidae  
are migrato ry species and there is always the possibility that the migration routes may have 
changed . Moreover, there is no information concerning high -value demersal  species such as 
lobster and octopus . As for annual data on catches, they are collected by the fishermen 's 
association and are not very reliable . 
• Lack of fishing infrastructure  
There are a few unloading areas where the boats can land their fish . The tracks g iving access to 
these areas are often unsuitable for vehicles and the fish are carried on men 's backs as far as a 
road. There are also a few small refrigerating facilities  (2-3 cubic metres) but the majority no 
longer work . The existing i nfrastructure  is rudimenta ry and would be inadequate  if small -scale 
fishing improved . 
• Poorly qualified workforce  
Comorian  fishermen are not familiar with deep -sea navigation.  
• Financ ing of investment  
The Fisheries Development Fund  (FODEPE) , established in  2003, needs str engthening . Moreover, 
the credit facility opened at the Comoros  Development Bank, which financed the purchase of many 
fishing boats, is now closed due to the accumulation  of unpaid debts . The impact on the ten or so 
small boat -building yards is clear . There is a contraction in boat -building activities . 
• Poor sanitary supervision and lack of certification.  
The sanitary supervision of fisheries products is poor . However, work is being done to set up a 
system that conforms with international certification  standards and requirements . 
• Deficiencies in safety at sea  
Accidents at sea are relatively frequent and too often end in the loss of crew and vessels . Engine 
breakdowns and adverse winds , lack of radios and GPS, lack of life jackets , high seas and storms 
are often to blame . Search resources are also inadequate . 
• Lack of means of ensuring the surveillance of the EEZ  
Surveillance of the EEZ is difficult, if not impossible , to ensure . The country has no means of 
physically inspecting fishing vessels operating i n or transiting through its territorial  water s. 
Question 13  
Paragraph 43 states that:  
"Salt production offers significant potential for growth, however the country continues 
to import salt from Madagascar."  
 Could the government explain why this is so?  
Reply: 
Despite the potential for marketing salt, because of strong domestic demand, its uses in food and 
as a preservative  and the lack of a regulatory barrier, there was never  an attempt  or a will on the 
part of the private sector to  produc e it until one oper ator took the initiative in  2013. On the basis 
of a feasibility study , the first company , install ed in Bimbini on the island of Anjouan , began 
producing and selling salt there . Marketing by the single producer encountered a problem of WT/ACC/COM/14  
- 11 - 
  sanitary and phytosan itary certification . The initial production was subject to phytosanitary 
analyses in the sub -region  (on the island of Re union) for lack of an SPS certification institute in the 
Como ros that would have enabled it to begin marketing in the country and abroad . 
(b) Current economic s ituation  
Question 14  
Paragraph 50 : What specific policies is Comoros pursuing or will it undertake to support 
its comparative advantages and niche market goals ? W hat policies is Comoros 
undertaking or will it pursue to improve its a gri-food supply levels ? How will Comoros 
use the WTO accession process to achieve its objectives?  
Reply : 
To support its comparative advantages and achieve its market access goals , the government  
intends to undertake a policy of quality and factor cost reduction that would make access to these 
markets possible for the potential niche products identifi ed by the new trade policy adopted in 
February  2013. Under present conditions, where cash products and food produ cts are concerned,  
the Union of the Comoros  could position  itself in the niche markets  for bio-products and begin by 
targeting Mauritius . Thus, efforts are being concentrated on seaside resort tourism and 
eco-tourism , the labeling  of fisheries products and certification/SCP . Within this framework, a 
project for a national agr i-food company is under way . 
The fisher ies project is ongoing . 
 
With regard to the project to set up an SPS and certification  laboratory , the focal point has been 
identified and designated , in the Ministry of P roduction , and a study  is being carried out.  
 
The organi zation of the Comoros ' export trade should concentrate more on export logistics . The 
government  has undertaken to negotiate with the carriers of freight for export  to be taxed at the 
same rate as competitors . 
 
Moreover,  a Medium -Term Plan 2012 -2015 has been drawn up and formed the subject of a round 
table in Geneva  for mobilizing aid for trade with a view to supporting the Comoros ' WTO accession 
process , to enable it to reap the resulting benefits . Clearly, accession  to the  WTO is an advantage 
when it comes to attracting more foreign investment in the various sectors . 
 
Question 15  
Paragraph 51 : The Comoros states:  
"These strategic approaches are reflected in the frame of reference of the 
Growth  and Poverty Reduction Strategy  Paper (GPRSP) and the development strategies 
of the Diagnostic Trade Integration Study (DTIS) . The latter, a frame of reference for 
external trade the chief elements of  which are currently in the process of incorporation 
into the PRSP under review, sets o ut a priority action matrix detailing the opportunities 
and barriers that must be dealt with for the sector to flourish properly."  
Please provide the Working Party with copies of the GPRSP and the DTIS, and the matrix 
incorporating the two so that Members will be in a position to provide guidance to 
Comoros on the WTO implications of its strategic approach.  
Reply : 
The Integrated Framework was established at the WTO in 1997 and revised in 2005 to help the 
LDCs to integrate into the multilat eral trading syste m, while emphasizing  a more structured 
appropriation and national  and global  governance, as well as an increase in financial resources 
commensurate with the demand from the LDCs . This EIF  programme is fully operational in the 
Comoros . WT/ACC/COM/14  
- 12 - 
  The Union of the Como ros considers that belonging to the WTO would give us an incentive to 
introduce the reforms necessary at the regulatory and institutional levels to correct the failings 
identified and to bring the infrastructure  into line with the required standards . Thus, the 
WTO accession process would strengthen support from the donors while furthering  the 
medium -term programme for the development of the country 's trade . 
The government  has set up a National EIF Implementation Unit  as a mechanism for coordinating 
donor su pport that should make it possible to mobilize more Aid for Trade resources . Donors can 
use the EIF to channel the flow of aid promised at the WTO 's Hong Kong Ministerial Conference i n 
2005,  under Aid for Trade . The medium -term plan submitted to a round ta ble organized by the 
government  in Geneva in 2012 estim ated the resources needed by the Comoros  to develop its 
foreign trade . 
Question 16  
Paragraph 52 : The Comoros government states in its MFTR as follows:  
 
"The absence of structural incentives for the rat ional allocation of resources to local 
production, for example the paucity of the domestic market, the division of land and the 
islands' relative isolation from the major flows of world trade, severely disadvantages 
the economy.  
 
How will Comoros use the W TO accession process to address these problems?  
Reply : 
The government  would like to stress  the lack of means at its disposal  for correct ing the structur al 
weaknesses of the Comorian  economy , which is holding back the development of trade . These 
weaknesses detrimental to the competitiveness of the economy are linked with the country 's 
geographical isolation , its island nature , the shortcomings of the internal and international 
transport system , and the fragmentation of the domestic market . Thus, our geophysi cal situation 
is imped ing the movement of people and goods , while  the lack of i nfrastructure  for providing 
connectivity by road, sea and air constitu tes another serious constraint . 
Question 17  
Paragraph 52 states:  
"The absence of structural incentives for the rational allocation of resources to local 
production, for example the paucity of the domestic market, the division of land and the 
islands' relative isolation from the major flows of world trade, severely disadvantages 
the economy."  
 In practical terms,  what does Comoros mean when it refers to "The absence of 
structural incentives for the rational allocation of resources to local production  …" 
What is the government describing?  
Reply : 
The government would like to stress the lack of means at its disposal for correcting the structural 
weaknesses of the Comorian economy, which is holding back the development of trade . These 
weaknesses detrimental to the competitiveness of the economy are linked with the country 's 
geographical isolation, its island nature, th e shortcomings of the internal and international 
transport system, and the fragmentation of the domestic market . Thus, our geophysical situation 
is impeding the movement of people and goods, while the lack of infrastructure for providing 
connectivity by ro ad, sea and air constitutes another serious constraint.  WT/ACC/COM/14  
- 13 - 
  2. Economic policies  
(a) Main directions of the ongoing economic policies  
Question 18  
Paragraph 74 : According to Comoros:  
"The State continues to have a presence as an economic stakeholder in a few public 
monopolies including the Société Comorienne des Hydrocarbures  (SCH) (hydrocarbons), 
MAMWE  (water and electricity), Comores Télécom , SNPSF , COMAIR (ground -handling at 
airports), Office National d'Importation et de Commercialisation de Riz  (ONICOR) 
(rice  imports and  marketing), the Comoros Development Bank , Banque de 
Développement des Comores  (BDC), and the Pharmacie Nationale de Cession des 
Comores  (pharmaceuticals) . The fact remains that the State, in  accordance with the 
Bretton  Woods institutions, will study the best approach to take to  achieve appropriate 
privatization of the activities still under its control."  
Please describe the activit ies that are still under the government's control ? What is the 
time-frame within which the Comoros will privatize such activities ? How will Comoros 
use the WTO accession process to address its privatization goals?  
Reply : 
State -owned companies : 
SCH 
MAMWE  
COMOROS  TELECOM  
COMAIR  
ONICOR  
BDC 
These companies cover the following activities : telecommunication s, the import and marketing of 
ordinary rice , energy, hydrocarbons , post al servic es, and airport services . The State has 
undertaken a policy of liberalization of the economic sectors . 
 
The BDC and the Pharmacie Nationale Autonome des Comoros  now CAMUC  have already been 
privati zed. 
 
Comoros  Telecom , COMAIR and ONICOR  are due for privatization . The State has not yet set a 
precise date for initiating the privati zation process . 
 
SCH, MAMWE and SNPSF have to be restructured . 
Question  19 
Paragraphs 78 -83: We are encouraged that the Comoros government seeks to divest 
itself of its shares of production . Please describe in detail the process that Comoros 
intends to follow  to expand economic activity, attract foreign direct investment and 
promote the Comorian private sector ? W here do global competitors fit into this 
divestiture picture ? Please describe in detail the process for government divestiture . 
What are the rules and  regulations governing privatization ? Please provide these to the 
Working Party . How will foreigners be allowed to participate in this process ? How will 
they be notified of their eligibility to participate in any specific sale ? Will the selling off 
of gove rnment shares be published in advance so that foreign suppliers can compete for 
such sales in Comoros ? How will the government ensure that the process is transparent 
and in accordance with WTO rules?  WT/ACC/COM/14  
- 14 - 
  Reply : 
The government  has several tools at its disposal for promoting e conomi c growth : 
 a programme for improving the business climat e is ongoing, thanks to IFC ; 
 ANPI: the Investment Code is one of the tools for allowing  foreign investment ; 
 the government  has d ivested itself  by establishing a privatization  commi ssion to oversee the 
process, for  the sake of transparency, and the privatization will be carried out by means of 
an international tender procedure ; 
 the adoption of a procurement code and a law on competition, both in conformity with 
international s tandard s, means that the divestiture process will be trans parent and in  
compliance with WTO rules . 
To demonstrate its intention to place the private sector at the heart of th is WTO accession process , 
in 2012 the  government  devoted a sum equivalent to  6.4% of GDP to calls for bids , within a 
framework of good governance and in compliance with the rules of the procurement code . 
The auth orities began reforming the procurement system in 2011 before a new Government  
Procurement Code was adopt ed by Parliament and enacted  in 2012. The main pillars of this Code 
are transparenc y, the efficiency of the economy , accountability , equal treatment for all bidders, 
domestic and foreign , the pre vention of fraud and corruption , and the  promotion of local 
capacit ies. The Code has been  supplemented with manuals containing regulations on 
implementation and procedur es. It also provides for the establishment of a Regulatory Authority  
for Government  Procurement (PPRA/ARMP) attached to the Office of the President of  the Union of 
the Comoros . This Authority is already operational . 
In general, the Code adh eres to international  good practice , for example : (i) advertising and  
large-scale sales , (ii) public opening of bids , (iii) the prior  distribution of all the relevant 
information , with clear a nd transparent  evaluation  of the bids and awarding of contracts , 
(iv) clearly defined responsibilities where decision -making is concerned , and (v) the right of 
bidders to make complaint s. 
However, there has been a delay in the implementation of these measu res and they suffer from 
the lack of a partnership with the private sector . The first stages of transparenc y through the 
advertising of tenders in the press and contract awards on the web site Cellule de Réformes 
Economiques et Financières (www.cref. Comoros .org) have still to materialize  in practice . 
 Decree No. 11 - 103/PR enacting Law No. 08-013/AU of 25 July 2008 relati ng to the 
transparenc y of the public, economi c, financi al and social  activities of the Union of the 
Comoros  reinforce s this transparenc y process . 
A call for expressions of interest with regard to Comores Télécom  and Mwa-Mwe has been 
published on the site of the Cellule des Réformes Economique et Financière . In the case of 
Comores  Télécom , the government  envisage s two scenarios:  
 majority priva tization of the shares for the private sector ; 
 the liberalization of certain activit ies by granting licences to an operator  
(mobile  telephony ). 
In the case of  the other companies  (MAMWE , SCH), the government  has undertaken to restructure  
them first, prior to privati zation.  
Question 20 
Paragraph 84 : In paragraph 84, the government refers to "the economic citizenship 
programme ". 
 Please outline the requirements and benefits of the economic citizenship 
programme.  WT/ACC/COM/14  
- 15 - 
  Reply : 
The requirements of economic citizenship (see document WT/ACC/COM/12  No. 5): Under the 
terms of Article 1  of the Law  (reference the law ) "the acquisition of economi c citizenship by 
decision of the public authority  results from a de cision given  at the request of a person of full age 
with the statu s of an economic partner of the government  of the  Comoros . The status of economic 
partner is acquired by any foreigner fulfilling the requirements set out in the present law  and 
submitting a request with a view to investi ng a sum of a minimum amount fixed by the finance law 
of the budgetary year in which the applicant submits the request and during a period to be 
determined on the basis of the economic investment  programme of the Union of the Comoros ". 
Article 2 states that  "Any person  wishing to acquire ec onomic  citizenship within the context of an 
economic investment  programme of the Union of the Comoros  shall submit a written request to 
the Independent National C ommission accompa nied by the following documents : a birth certificate 
not more than three mont hs old ; a medical certificate no t more than three months old ; a judicial 
record no t more than three months old ; a marriage certificate ; where appropriate, evidence of the 
deposit of the amount required for the investment in question provided by a bank or o ther 
financial institution  accredited in the Union of the  Comoros ; the acknowledgement or receipt for 
fees and charges issued by the Treasury ; and the investment project documentation ". 
The Independent National C ommission  is responsible for : receiving requ ests and processing the 
information relating to the person 's identity ; collecting the pertinent documents or having  them 
and verifying  their authenticity  or having  it verified, conducting preliminary inquiries , selecting 
applicants and issuing a recommenda tion before transmitting  the file to the Minist er of Justice ; and 
cooperating with domestic, foreign and internationa l agencies to procure  any useful information.  
The benefits  of economi c citizenship : 
promotion of foreign direct investment  and increased St ate revenue . 
Question  21 
Paragraph 89  refers to private sector involvement in the management of Comoros 
Telecommunications.  
 Please provide additional details on where this involvement is occurring?  
Reply : 
Cf. paragraph 17  
The equity of the company  Comoros  Telecommunications is 51% open to strategic investors or 
groups of investors . The other shareholders would be th e government  (34%) and the employees of 
Comoros  Telecommunications (15%). The choice of strategic investors will be made by  
international  tender . An international  call for expressions of interest has been issued  and the first 
proposals have been recorded . 
It should be noted that another tele communication s company will shortly  be opening in the Union 
of the  Comoros . Bids were called for and out of all the bidders  TELMA won the contract ; it has 
been awarded the second licence and is expected to commence activities in the next few months . 
Question 22  
Paragraph 89 : Could the Comoros please update on the progress recorded on the 
reforms aimed to secure in 2013 effective private sector involvement in the 
management of Comores Télécom and substantive changes in the management of 
MAMWE (water and electricity) and the State -owned oil -import company (SCH)?  
Reply : 
The government  of the Union of the Comoros  has undertaken a process of privati zation of Comoros  
Télécom (CT ) by means of a restructur ing of its activit ies aimed at transferring its assets to a new WT/ACC/COM/14  
- 16 - 
  ad hoc private company and the opening up of 51% of the equity to private investors . The other 
shareholde rs would be the government  (34%) and the employees of C T (15%). The choice of 
private investors will be made by international  tender . There has been an international call for 
expressions of interest in conformity with the government procurement rules in fo rce. A set of 
specifications has been drawn up and an evaluation commission will meet and choose the bidder 
that meets the criteria adopted . The first proposals have been recorded . 
With regard to the SCH and the other State -owned enterprises, the governmen t is reviewing their 
current situation ; it will proceed to carry out in -depth studies, outline its vision and then decide on 
the action to be taken . 
Question  23 
Paragraphs 96 -98: 
 What effect are current price controls (i.e., rice, hydrocarbons, water and 
electricity, postal and telecommunications) having on the fiscal budget and, 
where applicable, on the Comorian trade deficit?  
Reply : 
In introdu cing price controls on a list of staple products , the government 's aim was to allow access 
to these produ cts at a price that is affordable in terms of the purchasing  power of the consumers . 
However, price controls involve a loss of tax revenue given that the products whose prices are 
approved and subjected to these controls are subject to duty at the rate of 0%. 
Similarly, these controls are aggravating the trade deficit since they encourage import s to the 
detriment of local production.  
Question 24  
Paragraph 96:  
 Why does the government continue to subject "ordinary rice, hydrocarbons, and 
telecommunications" to governm ent-administered prices?  
 
 How does this policy contribute to Comoros' development, its growth in trade and 
its attractiveness as a market for private investment, domestic or foreign?  
 
 How does this policy help Comoros to become a global competitor?  
 
 Please  provide the Working Party with Decree No. 96-126/PR, which "subjects 12 
products to price approval prior to being placed on the market;" the products are 
then subject to a price control procedure conducted by government departments."  
 Please provide a list  of the 12 products.  
 How are the price controls administered and at what point of sale?  
 
Reply : 
The government  administ ers the prices of ordinary rice and hydrocarbons in order to stabili ze 
consumer  prices. This is not the case with tele communications, since liberalization would lead to a 
fall in prices and consumption . 
Aware of these obstacles, the government  intend s to liberalize these sectors, see the decree cited . 
With regard to the 12 staple  produ cts, the import er provides the competent s ervice with th e 
supporting documents relating to his order for the purpose of verifying the e ligibilit y of the 
produ cts for the category indicated and all the charges inherent in this operation . The end 
consumer selling price is determined on the basis of his costs and the profit margin he is accorded . WT/ACC/COM/14  
- 17 - 
  It should be kept in mind that  the Comoros  is an LDC which has to provide its people with food at 
affordable prices and ensure the country 's food security . 
Question 25  
Paragraph 97:  
 Could the Comoros please share its draft  legislation with the Working Party so that 
we can guide the government in order to avoid any WTO inconsistencies before the 
law is adopted?  
Reply : 
Law on competition  (see document WT/ACC/COM/12  No. 6) already adopted and enacted.  
(b) Monetary and  fiscal  policies  
Question 26 (United States ) 
Paragraphs 100 and 101 : Please provide the Working Party with the texts governing the 
financial sector as listed in the Comoros' MFTR, namely:  
 Law 80 -07, the Banking Law, r egulates the activities of banks and financial 
establishments operating in Comoros;  
 Law 80 -08 on money and the role of the BCC in the supervision of banks 
and financial  establishments;  
 Decree 87 -005/PR regulating financial relations between Comoros and abr oad. 
 Law regulating and organizing leasing agreements;  
 Law ratifying the MIGA Convention;  
 Decree on the establishment of a National Committee to combat 
money -laundering and the financing of terrorism;  
 Decree reorganizing the financial information service ( SRF);  
 Decree regulating the activities of Decentralized Financial Institutions (IFD), 
otherwise known as micro -finance activities;  
 Accession to the Islamic Society for the insurance of investment and export 
credits (SIACE/IDB) of the Islamic Development Ba nk. 
Reply : 
We have appended  (see document WT/ACC/COM/12  No. 7) a collection  of all the Central  Bank of 
the Comoros  (BCC)  texts that govern the banking and financial sector . 
Question 27  
Paragraph 107 : Comoros states that "Bank interest rates are administere d because of 
the lack of competition."  
 Are there barriers to the establishment of foreign banks or bank branches in 
Comoros?  
Reply : 
The banking environment has evolved considerably . There is no  restriction on the opening of 
foreign banks . WT/ACC/COM/14  
- 18 - 
  Question 28  
Parag raph 117 : In paragraph 117, Comoros refers to "efforts to reduce ad hoc customs 
and tax exemptions."  
 Please identify what sort of "ad hoc" customs and tax exemptions are granted, by 
whom, and for what reason.  
Reply : 
These are exemptions exceptionally grant ed by the Minister of  Finance  for social , humanitarian and 
development reasons . Moreover, the Invest ment Code provides for exceptional exemptions for 
investments in the "priorit y" sectors listed in the Code. The new trade strategy calls for a reform of 
the management of exemptions with a view to reducing them and for cross -checking to keep them 
under control . 
Question 29  
Paragraph 118 : The MFTR states:  
"Projected at 73 % of total revenue and 60 % of primary current expenditure in 2008, 
wage outlays are the si ngle most important spending item in the budget . Their rapid 
increase in recent years has weakened government savings and crippled its ability to 
support public investment and growth."  
 Please identify the major sources of government revenue by source, e.g. , customs 
duties, domestic direct taxes, domestic indirect taxes, taxes applied to 
imports/exports, fees, other charges (please identify), other sources.  
Reply : 
Finance Law No. 15–012/AU of 28 December  2015 concerning  the finance law for 2016, enacted 
by Decree No. 15–240/PR of 31 December  2016 ( see document WT/ACC/COM/12  No. 8). 
Budget revenue for the year  2016. 
 2014 2016 
  Consolid ated Union  Ngazidja  Anjouan  Moheli  
Fiscal revenue  
Non-fiscal revenu e 
Own revenue  39 994 545 645.34 
29 486 068 185.34  
10 508 477 460  48 820 208 529  
34 869 033 819 
13 951 174 710  43 679 580 
32 040 517 672 
11 639 014 908  2 149 760 719  
1 279 217 011 
870 543 708  1 856 064 648  
1 049 760 986 
806 303 662  1 134 850 582  
499 538 150 
635 312 432  
71 Fiscal 
Revenue  2 150 445 402  2 883 337 324 0.00 1 336 779 544  1 007 534 198  539 023 582  
7121 Tax on 
corporate 
income and 
profits  73 974 692  122 119 636  00 99 890 036  15 000 000  7 229 600  
713 Tax on built 
and rented 
property  20 996 712  35 842 396  00 30 000 000  4 242 396  1 600 000  
715 Taxes and 
internal  
charge s on 
goods and  
services  702 715 531  950 586 390  00 750 408 225  164 888 615  35 289 550  
7150 Business tax  481 812 418  723 674 730  00 563 941 720  136 793 960  22 939 050  
7151 Vehicle licence 
tax  93 476 470  94 779 939  00 73 196 009  13 229 43 0 8 354 500  
7152 Diesel tax  106 420 285  108 600 205  00 91 738 980  12 865 225  3 996 000  
7153 Tax on 
insurance 
contracts   21 006 358  23 531 516  00 21 531 516  2 000 000  00 
716 Stamp duty 
and 
registration 
fees 127 600 867  121 673 250  00 78 418 750  34 357 5 00 8 897 000  
718 Other excise 
tax 20 945 317  31 150 000  00 21 500 000  9 000 000  650 000  
719 Other fiscal 
revenue  506 642 025  658 642 025  00 00 506 642 025  350 000 000  
72 Non-fiscal 
revenue   697 570 258  765 323 627  00 356 562 533  273 403 662  135 357 432  WT/ACC/COM/14  
- 19 - 
   2014 2016 
  Consolid ated Union  Ngazidja  Anjouan  Moheli  
720 Revenu e from 
state lands  34 817 622  25 662 533  00 21 662 533  4 000 000  00 
721 Administrati ve 
fees and 
charges   473 909 207  518 576 882  00 165 400 000  222 663 450  134 513 432  
723 Fines, 
penalties and 
seizures  26 065 480  34 146 500  00 18 000 000  15 000 000  1 146 500  
727 Revenue from 
prefectures  129 108 662  155 237 712  00 146 000 000  5 540 212  3 697 500  
COLLECT ION OF REVENUE TO BE S HARED  
71 Fiscal revenue  28033193041.34  32751020122  32040517672  299000000  315630450  95872000  
710 Tax on 
personal 
income  and 
profits  2285812380.34  2013326174  1302823724  299000000  315630450  95872000  
7101 Tax on the 
salaries of 
state 
employees  1112379147  1191277950  480775500  299000000  315630450  95872000  
7102 Tax on public 
corporation 
salaries  83140736  84845000  84845000  00 00 00 
7103 Taxes  on 
company 
salaries  1079593245.34  726503224  726503224  00 00 00 
711 IRVM  10699252  10700000  10700000  00 00 00 
712 Tax on 
corporate 
income and 
profits  4110782769  6497950445  6497950445  00 00 00 
714 Other direct 
taxes  00 00 00 00 00 00 
715 Taxes and 
internal  
charges on 
goods and 
services  3521961808  4180000000  4180000000  00 00 00 
7156 Consumption 
taxes on 
imports  1713000000  2125000000  2125000000  00 00 00 
7157 Import trade 
tax 447000000  523000000  523000000  00 00 00 
7158 Import l icence  
for superior 
quality rice   00 00 00 00 00 00 
7159 Licence to sell 
alcoholic 
beverages  00 5000000  5000000  00 00 00 
7160 Advance 
payment of 
import tax  388000000  453000000  453000000  00 00 00 
716 Stamp duty 
and 
registration  
fees 1405636084  1591909349  1591909349  00 00 00 
7171 Foreign trade 
tax 4940000000  4870834154  4870834154  00 00 00 
718 Other excise 
duties  11769000000  13597000000  13597000000  00 00 00 
719 Other fiscal 
revenue  00 00 00 00 00 00 
72 Non-fiscal 
revenue  6715476139  13185851083  11639014908  513981175  532900000  499955000  
721 Administrati ve 
fees and 
charges    323608500  00 00 00 
724 Financial 
products 00 00 00 00 00 00 
725 Social security 
contributions  2080430947  2501631175  955550000  513226175  532900000  499955000  
726 Business 
income  388081655  5504000 000 5504000000  00 00 00 
729 Other 
non-fiscal 
revenue  00 780000000  780000000  00 00 00 
76 Extraordinary 
revenue  3095431063  55923258  55925823  00 00 00 
760 Forgiveness 
and 
cancellation of 
debts   00 00 00 00 00 00 
764 Other 
extraordinary 
revenue  30954113996  55873258  55873258     
 
For further details see  document WT/ACC/COM/12  No. 8. WT/ACC/COM/14  
- 20 - 
  Question 30  
Paragraph 119 : In its MFTR, Comoros states:  
"In the face of erratic and weak revenue performance, increasing wage expenditures 
have caused the accumulation of large p ayments arrears, hampering macroeconomic 
stability . Going forward, the authorities recognize that reining in the wage bill will be 
the single most important element of their spending policy . Under the latter, the wage 
bill is to be reduced to  below 8 % of GDP by 2013 (9 % of GDP in 2008)."  
 Will the private sector play a primary role in the Comoros' efforts to rein in the 
wage bill?  
 
 In the context of the WTO Agreements, how does the Comoros envisage allowing 
the private sector to develop the ability to compet e with the public sector?  
Reply : 
The private sector is not yet ready to support the re duction of the wage bill . However, in view of 
the importance of the private sector for job creation and incomes , the strengthening of the private 
sector constitutes one o f the programmes of the SCA2D , to enable it to  become the spearhead for 
economic growth and investment . 
Thus, by withdrawing from certain sectors of the economy , the State is aiming to : 
 build the capacity of the domestic private sector;  
 improve the busines s climate;  
 open up the banking sector to competition . 
Within this framework, the State and several donors have set up projects aimed at encourag ing 
business creation and development . The new employment policy takes this aspect  into account . 
With this new e mployment policy, adopt ed in April 2013, the government  is undertaking to assist  
the private sector in responding to th e need to create decent jobs , through the following 
measures : 
 Promotion of rural growth to generate more and better quality jobs;  
 Develop ment of the private sector and promotion of the cre ation of Micro, Small and 
Medium -Sized Enterprises or M iSMEs ; 
 Promotion of cultural and creative industries ; 
 Facilitation of transition  to the formal sector ; 
 Increased financial flows with a view to promot ing private initiatives;  
 Promotion of employment through the "High Labour Intensity  (HLI)" approach;  
 Promotion of green employment , etc. 
The process  of accession of the  Comoros  to the WTO is a tool for reviewing its legislation in order 
to align it on international  standards and enable the Union of the Comoros  to benefit from the 
assistance n ecessa ry to meet the needs of job creation . 
Table 1 : Number of jobs by institutional sector  
Government  sector , State -owned and partially State -owned enterprises , formal  and 
informal  private sector  
 Number of jobs by institution al sector  
Sector Government  State -owned and 
partially 
State -owned 
enterprises  Formal private 
sector  Informa l sector  
(inc. households ) Total 
Number  26,080  5,925  4,819  156,769  193,593  
Percentage  13.47 3.06 2.49 80.98 100 
Source : INSEED, 2014, Survey  1,2,3 WT/ACC/COM/14  
- 21 - 
  Question 31  
Paragraph 120 : According to the MFTR,  
"Corrective measures introduced and/or envisaged include (i) a freeze on civil service 
recruitment, effective 8  August  2008; (ii) a reduction of governmen t ministerial 
portfolios from 35 to 26, effective November  2008; (iii) full computerization by 
end-December  2008; (iv) implementation of a computer based, integrated payroll 
management system by  end-December  2008; (v) adoption of organic framework s 
setting the appropriate structure and  optimal level of civil service staffing by 
end-June  2009 (see IMF memorandum) ; (vi) the adoption of a new tax code ; and 
(vii) the establishment in 2012 of the General Tax and Property Administration  (AGID).  
 Through w hat policy tools will Comoros improve on its efforts described in 
paragraph 120 of the MFTR?  
 
 Please list the current types of taxes, both direct and indirect, applied in Comoros, 
e.g., income tax, sales tax, land tax, services or licensing taxes, etc.  
 
 Please indicate how the new tax code will help "rein in the wage bill".  
 
Reply : 
 
The private sector is not yet ready to support the reduction of the wage bill . However, in view of 
the importance of the private sector for job creation and incomes, the strengt hening of the private 
sector constitutes one of the programmes of the SCA2D, to enable it to become the spearhead for 
economic growth and investment . 
 
In fact, it is not a question of reviewing private sector wages , but rather one of building production 
capacities to enable particip ation in export expansion thereby generating more income and thus 
creating more jobs and relieving the pressure on the civil service which is the country 's principal 
employe r. 
 
Thus, by withdrawing from certain sectors of the eco nomy, the State is aiming to:  
 build the capacity of the domestic private sector;  
 improve the business climate;  
 open up the banking sector to competition.  
Within this framework, the State and several donors have set up projects aimed at encouraging 
business  creation and development . The new employment policy takes this aspect into account.  
With this new employment policy, adopted in April 2013, the government  is undertaking to support 
the private sector in responding to the need to create decent jobs, throug h the following 
measures:  
Development of the private sector and promotion of the creation of Micro, Small and Medium -Sized 
Enterprises or MiSMEs;  
 Promotion of cultural and creative industries;  
 Of the transition to the formal sector;  
 Increased financial flo ws with a view to promoting private initiatives;  
The process of accession of the Comoros to the WTO is a tool for reviewing its legislation in order 
to create a legislative, regulatory and institutional framework that will make possible  the 
emergence of th e private sector . 
 WT/ACC/COM/14  
- 22 - 
  Question 32  
Paragraphs 131 et seq . In describing its relations with the IMF, Comoros states in 
paragraph 136:  
"The authorities agreed to implement structural reforms, including measures to reduce 
factor costs, to diversify the economic a nd export base, and to improve the business 
environment ; these are key to stemming the erosion of competitiveness, boosting 
exports, and reducing external  imbalances."  
Please provide specific examples of how the Comoros plans "to implement structural 
refor ms, including measures to reduce factor costs, to diversify the economic and export 
base, and to improve the business environment;" . 
Reply : 
The main ongoing structural reforms are : 
 in the macro -economi c context : strategy for the reform of the public financ es, law on the 
financial operations of the State , decree on the directorate -general of public accounts and 
the treasury , establishment of the information centre in the Ministry of F inance, 
establishment of the national commission on domestic debt;  
 establis hment of the risk prevention platform;  
 the efforts to ensure the efficient and effective operation of the energy sector in order to 
support economic growth;  
 publication of the call for expressions of interest in the privati zation of  Comoros  
Telecommunicati ons; 
 the adoption of a new trade policy  establishing a road map for a vision of development ; 
 the incorpor ation of a trade chapter into the DSCRP ; 
 the implementation of a programme to improve the business climate : ratification of the 
MIGA  convention, the la w on leasing , the measures in support of the security of land tenure , 
etc.; 
 the adoption of a new employment policy;  
 the cre ation of a national fish exporting company;  
 participation in the COMESA  free trade area and the adoption of a law on competition;  
 the financing of a project to improve the  comp etitiveness of vanill a, ylang -ylang and clove 
exports;  
 reform s relating to energy and transport logistics (improvement) The arrival of a private 
operator has significantly improved these port logistics -related se rvices in certain sectors  
(telecoms, SCH) ; 
 divestiture will enable  the State to reduce its costs;  
 establishment of a fund for the promotion of centres of growth;  
 identification of  potential growth areas . Within the context of measures to  improve the 
busine ss climate, reforms are ongoing with the support of the IFC. 
Question  33 
Paragraph 140 : Please provide to the Working Party the new  version of the Comoros' 
development reference framework, the 2009 GPRSP, inasmuch as it includes trade policy 
as an aspect o f the national development strategy.  
Reply : 
The new  version of the Comoros ' development reference framework  is currently governed by the 
Accelerated Growth and Sustainable Development Strategy  (SCA2D) . This document incorporates  
the implementation of trade  policy as an aspect of the national development strategy.  WT/ACC/COM/14  
- 23 - 
  (d) Foreign and domestic investment policies  
Question  34 
Paragraph 142 : Please provide the new Investme nt Code under Law No. 07-10/AU of 
31 August  2007 to the Working Party.  
Reply : 
Investment Code (see document WT/ACC/COM/12  No. 1). 
Question  35 (Uni ted State s) 
Paragraph 145 : The MFTR states that the new foreign investment  law "sets out the 
conditions that a pply to foreign direct investment in any sector of  economic activity . All 
sectors are open to investment except where the undertaking would represent a threat 
to national security, the environment or the public health, or would violate domestic 
legislation  or regulations."  
 Please provide a list of sectors already identified as meeting the criteria for a 
"threat to national security, the environment or the public health, or would violate 
domestic legislation or regulations" . 
Reply : 
There is no list of sector s meeting the criteria for a  "threat to national security, the environment or 
the public health, or would violate domestic legislation or regulations ". 
However , the law states that foreign investors can invest freely in the Comoros , "subject to 
specific pr ovisions intended, in particular, to ensure the protection of health and public hygiene, 
social  protection and public economic order ". 
Question 36 (Uni ted State s) 
Paragraph 150 : Please describe the fiscal benefits and concessions provided by the 
government  for FDI and cite the legal authority for these measures.  
 Are these different for domestic vs. foreign investors ? If so, how do they differ?  
Reply : 
The benefits under the Investment Code are the same for both domestic and foreign investors . 
There are two r egimes, namely : 
Regime A  
Conditions:  
 The enterprise must submit an investment programme for between FC  5,000,000 and 
FC 100,000,000; 
 
 The enterprise must submit a significant job creation programme that gives preference 
to the recruitment of Comorian natio nals. 
Benefits available : 
 Application of a reduced maximum rate to the Single Administrative Charge  (RAU) on 
imports of equipment and materials specifically intended for production or operation  
within the framework of the programme approved , for a period o f 7 years ; WT/ACC/COM/14  
- 24 - 
   
 Exemption from turnover tax for equipment and materials specifically intended for 
production or operation  within the framework of the programme approved , for a period 
of 7 years ; 
 
 In relation to profits tax,  approved enterprises are authorized to deduct from the taxable 
profit  100% of the investment made . These de ductions may be spread over 5 successive 
tax years , at the end of which the balance  of the tax credit authorized and unused  may 
neither be allocated nor reimbursed ; 
 
 Exemption for an ad ditional period of 2 years for enterprises established in rural areas ; 
 
 At the end of the period approved for the concessions , application of a maximum rate 
reduced to half the current minimum rate on imports of raw materials specifically 
intended for production.  
Regime B  
Conditions:  
 The enterprise must submit an investment programme amounting to more than 
FC 100,000,000; 
 
 The enterprise must submit a more significant job creation programme that gives 
preference to the recruitment of Comorian  nationa ls. 
Benefits available : 
 Application of a reduced maximum rate to the Single Administrative Charge (RAU) on 
imports of equipment and materials specifically intended for production or operation 
within the framework of the programme approved , for a period of  10 years; 
 
 Exemption from turnover tax for equipment and materials specifically intended for 
production or operation within the framework of the programme approved , for a period 
of 10 years ; 
 
 In relation to profits tax, approved enterprises are authorized to dedu ct from the taxable 
profit 100 % of the investment made . These deductions may be spread over 8 successive 
tax years, at the end of which the balance of the tax credit authorized and unused may 
neither be allocated nor reimbursed ; 
 
 Exemption for an additiona l period of 2 years for enterprises established in rural areas ; 
 
 At the end of the period approved for the concessions, application of a maximum rate 
reduced to half the current minimum rate on imports of raw materials specifically 
intended for production . 
Establishment agreement  
Conditions:  
 Any enterprise that is approved or considered to have priority within the context of the 
economic and social development plan of the Union of the Comoros  may conclude with 
the government  an establishment agreement that accords it certain guarantees and 
imposes on it certain obligations . 
 
 The following may form the subject of negotiations : 
 
 The purpose and location of the enterprise; 
 
 The extent and duration of the investment programme and its knock -on effects ; WT/ACC/COM/14  
- 25 - 
   
 The other  benefits accorded by the State , the date on which they take effect and their 
period of application ; 
 
 The commitments undertaken by the enterprise ; 
 
 The conditions under which the agreement may be revised ; 
 
 The specific control procedures and conditions  to which the enterprise is subject ; 
 
 The sanctions applicable  in the event of failure to fulfil the commitments undertaken ; 
 
 The arbitration procedure in the event of a dispute between the two  parties.  
(e) Competition policies  
Question 37 (Uni ted State s) 
Paragraph 153 states:  
"A draft law on competition and prices will be put before Parliament in 2013 as part of 
the programme of structural reforms and as part of the quest for compatibility with the 
WTO mult ilateral frame of reference . The draft law will establish the Competition 
Authority, an  independent body that will be responsible for regulation and oversight in 
conformity with the rules and procedures that have become universal in the field."  
 
 What, prec isely, are the procedures contained in the draft law?  
 
 Please provide the Working Party with the draft law so that we can provide 
guidance to the government on the draft's WTO -compatibility before it is adopted . 
Once adopted, the Comoros will likely find i t difficult to make any changes required 
for accession to the WTO.  
Reply : 
The Law on competition has already been adopted and enacted (see  document 
WT/ACC/COM/12  No. 6). 
Question  38 
Paragraph 153 : Could the Comoros please update on the state of play of the  draft law on 
competition and prices that Comoros indicated as being put before the Parliament 
in 2013?  
Reply : 
The Law on competition has already been adopted and enacted (see document 
WT/ACC/COM/12  No. 6). WT/ACC/COM/14  
- 26 - 
  Question 39  
Paragraphs 154 and 155 : These paragra phs speak to the new competition rules and the 
"new body" to be established to administer the new rules . We will need many more 
details about the "new body" . For example, who are the competent bodies that comprise 
the "new body?" Who is the lead competent body ? What are the roles of the competent 
bodies that make up the "new body" ? What, precisely, is its authority ? What are the 
"rules and procedures" of the "new body" ? When and where are they/will they be 
published ? Could the Comoros please provide the Wor king Party with the governing 
regulations of this body ? To whom can a party appeal a decision of the new body?"  
Reply : 
A national  commission will be charged with the implementation of the Law on competition . Its 
establishment and composition are described  in Title I, Section 1 ( Articles 22 to 24) of the Law . 
3. Foreign trade in goods and services  
Question  40 
Paragraph 158 : How does Comoros intend to use its WTO negotiations, both in the rul es 
area and in bilateral market access negotiations, to attract foreign direct investment in 
its tourism sector?  
Reply : 
The Union of the  Comoros  intend s to engage  in the liberalization of the tourism  sector to attract 
the maximum of foreign direct investme nt in this sector in compliance with the sectoral le gislation 
in force, while taking its development goals into account . Indeed, the Union of the Comoros  has 
just adopted a law on the supply of tourism sector services . The sector is open and these 
negotiat ions will enable it to make the tourism sector known to potential foreign investors . 
Question  41 
Paragraph 190 : It should be noted that the reduction by the EU of export refunds, which 
eventually reached zero in the summer of 2013, was an autonomous measur e and is not 
linked to c ompliance with the European Communities' multilateral commitments . 
Reply : 
These are measures  that fall within the framework of developed countr y support for the 
development of the LDCs  or, in other words, the GSP . 
Question 42  
Paragr aph 191 : To what does the Comoros attribute "the crisis affecting Comorian 
vanilla which is losing market share"?  
Reply : 
Numerous factors are contribu ting to the loss of vanilla market share : 
 
 fierce international competition;  
 appearance of new competitors ; 
 introduction of synthetic vanill a; 
 a strong currency as compared with competing vanilla exporters . WT/ACC/COM/14  
- 27 - 
  4. Domestic trade in  services  
Question 43  
Paragraph 200 : With what  specifications did the one private telec ommunications 
operator, to which the government offered a concession, not comply ? Please briefly 
outline Comoros' intentions in terms of opening its telecommunications services sector 
to foreign services providers.  
Reply : 
The government  of the Union of the  Comoros , through the  Minist ry of the Economy and Finance , 
has begun a process of p rivatization of Comoros  Télécom (CT), its national  telecommunications  
company , by restructur ing its activit ies via the transfer of its essenti al assets to a new  
ad hoc compa ny and the opening up  of 51% of the latter 's equity to a strategic investor or group 
of investors . The other shareholders would be the government  (34%) and CT 's employees  (15%). 
 
However, it happens that Twama Telecom , the operator which undertook to build  the 
infrastructure  within a specified period, in return for obtaining the licence , has had its licence 
withdrawn for failing to fulfil its commitments . 
 
At present, the government  is working on two scenarios:  
 
(a) opening up the c apital to private investo rs (the private sector ); 
(b) granting a licence to a private operator for mobile  telephony . 
Question  44 
Paragraph 201 : Please describe in greater detail the ongoing problems in the electricity 
services subsector.  
Reply : 
Electricity generation in the Comoro s is mainly thermal (diesel), with the exception of 
three  hydroelectric micro -stations , two on the island of Anjouan and a third on the island of 
Mohéli.  
Petroleum  produ cts are import ed. Supplies are made more expensive because of the distance to 
the suppl y market, combined with  an insufficiently developed tr ansport  infrastructure . 
Electricity is produced by a system consisting of three main thermal power stations  (Voidjou, 
Trénani, Fomboni) and a few micro -stations, all diesel -burning, the property of the Public 
Industri al and Commercial Board, which provide a public electricity and water p roduction, 
transport and d istribution  service . 
a. The total installed electrical capacity is  30 MWe, of which 22 is in Grand e Comor es, 7 in 
Anjouan and 1.5 in Mohéli . The average price per kilowatt -hour is 0.3 euros. The size of 
the plants and production units is still very small ; the units in use vary from several tens 
of kVA to 2,000 kVA.  
b. Overall, the generating equipment suffers from lack of routine and periodic main tenance 
and the 6, 12, and 24  thousand  hour overhaul times are often exceeded . This has 
consequences for the power actually available , which permanently compromises the 
quality of the service  provided , so that power cuts are frequent . 
c. The balance betwee n supply and demand is constantly being compromised, in  face of the 
need for growth stemming from e conomi c and social  development . Most of  the few tens 
of thousand s of subscribers to these services  are low-consumption households,  in view of 
the absence , in significant numbers , of other consumer segments such as industr y, craft 
trades , the tertiary sector and construction , to mention only these . WT/ACC/COM/14  
- 28 - 
  d. There is a medium -voltage ( 5 and 21 kV ) transport and  a low-voltage (400/230 V) 
distribution  network, in very b ad technical condition , since it is quite segmented, built up 
progressive ly since the 1970s with sections, types of cable and classification s that vary 
consid erably from one area to another and a total length of only about 300 km. Thus, 
network extensions to villages no t yet electrified  and ramifications inside and outside the 
boundaries of the areas served  remain a priority . To this should be added the need for the 
technical re habilitation of certain power line segments regarded as being very dilapidated . 
In addition, there are the persistent problems with technical, organizational and financial 
capacitie s, particularly as regards the very limited human resources and the lack of 
logistical systems suitable for accomplishing the mission of providing all the customers 
with a high -quality and therefore continuous service.  
e. Coverage is 60 % in Grand e Comor es, 28% on the island of Anjouan and 10% on the island 
of Mohéli.  
In short, the problems with e lectricit y have their sources in : 
 sale of the kilowatt/h  at a loss; 
 dilapidated networks;  
 multiplicit y of power generators, rul ing out economies of scale;  
 unqualified personnel;  
 technical losses associated with the age of the networks;  
 problems linked with fraud and the theft of electricity;  
 problems linked with custo mer management and debt collection ; 
 single source of power generation . 
6. Information on growth in trade in goods and services over recent years 
and forecasts for years to come  
Ques tion 45 
Paragraph 231 seems unclear . The paragraph states the following:  
"Growth in trade in goods and services would appear to be sustainable and to favour 
Asia and th e Middle East . Where intra -regional trade is concerned, the change in trade 
since 2007 has focused Comorian importers on other sources, seeking better 
competitiveness/prices, to address the spike in prices for this raw material . Following a 
significant dec line in exports from Madagascar to Comoros, mainly of live animals for 
slaughter, has undergone a considerable revival."  
 The second to last sentence refers to "this raw material ." Please identify the raw 
material to which this sentence refers?  
 
 The last se ntence appears to be missing a subject . Please clarify what this 
sentence means to convey.  
Reply : 
This paragraph  reflects the analys is of Comorian imports in recent years . The analysis reveals that 
during the last 15 years , the Comoros  have been successful  in diversifying the markets from which 
their imports come  in order to reduce end import costs while improving the quality of the produ cts. 
Between 1995 and 1996,  69% of produ cts were import ed from the European Union ( EU), as 
compared with 30% in 2010 -2011. The OIC has now joined the EU as one of the country 's most 
important trading partners . The Comoros  import ed 31% of total imports from the member 
countries of the OIC between  2010 and 2011 . Likewise, the  volume of trade from the Indian Ocean 
subregion and  COMESA has also increased and the share of total import s is 11% of total imports 
for the COMESA countries and 7% of the total for the countries of the Indian Ocean Commission.  
Similarly , 24% of Comorian imports come from Asia, exclu ding Western Asia. Fuel imports come 
from a wide variety of sources : 30% of total fuel imports comes from South Africa, 15% of the 
total comes from  Madagascar, 14 % from Greece , 13% from Turkey , and 11% from Bulgari a. WT/ACC/COM/14  
- 29 - 
  Question 46  
Paragraph 234 of the MFTR states:  
"Information on the growth in trade in goods and services by economic zone appears in 
the table above . It illustrates the key change in Comoros' structure of trade with the 
world, namely a  renewed focus on Asia to the detriment of the European Union which 
used to account for 53 % of Comoros' imports compared to less than half currently."  
 There seems to be no such table "above" . Could the Comoros please provide the 
table to which it is referring in this paragraph?  
Reply : 
 
Despite a  slight decline,  to a share of 39.9% of total imports as compared with 41.7% in 2013, the 
countries of the Near and Middle East, led by the United Arab Emirates , remain the foremost 
supplier of goods , with an import value of nearly FC 2 0 billion . This re-orientation is due to the 
search for better c ompetitiveness/prices , in order to deal with the upsurge in raw material costs. 
The countries of Asia and the European Union have consolidated their second and third places with 
shares of 28.5% and 18.7%, respectively . There has been a fall in the African countries ' share of 
imports, mainly attributable to the IOC countries whose share has declined by 3.3 points , to 5.8% 
as compared with 9.1% in 2013 . 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING FOREIGN 
TRADE IN GOODS AND TRADE IN SERVICES  
1. Powers of executive, legislative and judicial branches of government  
Question 47  
Paragraph 249 : The MFTR states that the term of the President is four years and that 
there are vice -presidents,"one for each other island."  
 We understand that the President's term is five years and that there is one 
vice-president for ea ch island . Could Comoros please confirm or correct our 
understanding?  
 
 Please confirm that the vice -presidents are different from the governors . Do the 
vice-presidents have any direct or separate governing powers vis-à-vis their 
islands, or are they solely  assistants and possible successors to the President ? 
How is the line of succession determined among the three Vice -Presidents?  
Reply : 
We can confirm that at federal government level there is a President of the Union elected by 
univers al suffrage for a fiv e (5) year term, together with the three (3) Vice -Presidents who are the 
running mates of the Pre sident  at the time of the elections . The vice -presidents are different from 
the governors . They assist the Pre sident of the Union in appointing members of the government , 
among others . Article 14 of the C onstitution  (see below) specifies how the line of succession 
between the president and the vice -presidents is determined . A National  Assembly is also elected . 
In each island the executive power is exercised by a  Governor elected for a five -year term . 
A Council (island parliament) is also elected . 
According to A rticle 14 of the C onstitution, " in the event of a vacancy, for whatever reason, in the 
Office of the President of the Union  or permanent incapacity duly de clared by the Constitutional 
Court at the request of the government , a new President of the Union shall be elected  within a 
maximum period of sixty (60) days from confirmation of the vacancy or permanent incapacity . The 
functions of the President of the Un ion shall be provisionally performed by the senior of the 
Vice-Presidents . In the event of a vacancy or permanent incapacity of a Vice-President,  he shall be WT/ACC/COM/14  
- 30 - 
  replaced by the Assembl y of his island of origin at the proposal of the President of the Union . In the 
event of his absence o r temporary incapacity , the President of the Union shall be replaced by one 
of his Vice-Presidents".  
Question 48  
Paragraph 251 : Please provide the Constitution's new Title IV to the Working Party.  
Reply : 
Title IV of the new C onstitution of the Union of the Comoros  reads as follows : 
Title IV. Relations between the legislative branch and the executive branch  
 
Art.31 . In addition to the matters referred to it by other articles of the Constitution, the law  of the 
Union shall establish  the rules concerning:  
 civic rights and the fundamental guarantees granted to citizens for the exercise of their 
civil liberties ; the obligations imposed upon the person and property of citizens;  
 the law governing associations and political parties and the  status of the opposition;  
 nationality, the status and capacity of persons, family law, inheritance and gifts;  
 the determination of serious crimes and other major offences and the penalties they 
carry;  
 criminal procedure ; amnesty ; the setting up of new cat egories of courts;  
 the base , rates and methods of collection of all types of taxes ; the issuing of currency.  
 
The law shall also establish  the rules governing:  
 the administration of customs services;  
 the management of State lands and of the land registry;  
 the management of State -owned  companies;  
 systems of ownership, property rights and civil and commercial obligations;  
 the system for electing members of the Assembly of the Union;  
 the setting up of categories of public legal entities;  
 the status of civil se rvants and members of the Armed Forces and the fundamental 
guarantees  granted to them;  
 the nationalization of companies and the transfer of ownership of companies from the 
public to the  private sector;  
 expropriations  in the public interest.  
 
The law shall also establish  the basic principles of:  
 the general organization of defen ce and national security;  
 the general organization of the administrative, social and financial in spection  authorities;  
 education and national public diploma s; 
 information  and the new information technologies.  
 
Art.32. (Introduced in  2009) Matters other than those coming under the scope of statute law shall 
be matters for regulation . 
 
Art.33. (Introduced in  2009) The Assembly of the Union may call one or several Ministers or other 
membe rs of the government  to account by addressing a petition to the President of the Union . 
Such a petition shall not be admissible unless it is signed by at least one third of the members of 
the Assembly of the Union.  
 
Voting may not take place within forty -eight hours after the petition has been tabled . Only votes  
cast in favo ur of the petition shall be counted and the latter can be adopted only by a majority of 
two thirds of the members of the Assembly of the Union.  
 
The Assembly of the Union shall not vote on more than two petitions per year, and no petition 
shall be  tabled in the course of an extraordinary session.  
 
The President is under an obligation to terminate the functions of the Minister or Ministers or other  
members of the government  targeted by the  petition . He shall not re -appoint them to ministerial  
posts in the six months following their dismissal.  WT/ACC/COM/14  
- 31 - 
   
Question 49  
Paragraph 255 : The MFTR states that the " Constitutional Court  … is responsible for 
ruling on conflicts of jurisdiction between two or mor e Union bodies, between the Union 
and the Islands, and between the Islands themselves."  
 May Constitutional Court rulings be appealed, e.g., to the Supreme Court?  
Reply : 
There is no appeal against judgments of the Constitutional Court. The Supreme Court doe s not 
have the same jurisdiction . 
 
Question 50  
Paragraph 259 states : "The matters ruled on by the courts of first instance may be 
appealed to the Court of Appeal of Comoros and the Cassation Chamber at the Court of 
Justice of the OHADA, in that order."  
 Under what circumstances does the Supreme Court review rulings from the Court 
of Appeal?  
Reply : 
The Supreme Court is the Court of Cassation.  
Question 51  
Paragraph 260 : Please provide to the Working Party the law on commercial arbitration 
(the OHADA Uniform Ac t on Arbitration) and procedural texts on the recognition and 
enforcement of Comorian and foreign arbitral awards.  
Reply : 
The OHADA  Uniform Act on Arbitration applied in the Co moros  in cases of commercial arbitration is 
appended hereto ( see document WT/ACC /COM/12 No. 9). 
2. Government  entities responsible for making and implementing policies affecting 
foreign trade  
Question 52  
Paragraph 263 : The MFTR states that " Trade policy matters are the responsibility of the 
Ministry of the Economy and Trade, which is responsible for coordinating with the other 
Ministries with responsibility for trade -related matters  …" 
 Please des cribe how this coordination occurs in operation . Are there designated 
offices within the coordinating Ministries that are coordinating points of contact?  
Reply : 
All trade policy matters are dealt with by the Vice -President responsible for  the Minist ry of Finance,  
the Economy , the Investment  Budget and Foreign Trade in charge  of privati zations,  through the 
Deputy for the Economy and Foreign Trade . It is the Vice-President who takes the initiative and the 
decisions.  
 
There is a coordination  commission on whic h the various actors involved in trade are represented . 
This is the  National Forum on Trade Policy Development  (FNDPC ), which includes the focal points 
for each of the ministries concerned (see  document WT/ACC/COM/12 No. 10). WT/ACC/COM/14  
- 32 - 
   
The strategic decisions are s ubmitted to the Council of Ministers for approval . 
 
Moreover, the negotiations committee brings together members from different backgrounds : civil 
society (unions, businessmen ), research  (universit ies), various departments (economic, financial, 
institution al, etc.).  
Question 53  
Paragraph 264, et seq .: With regard to the government's statement concerning its 
establishment of a multisectoral framework, the National Forum on Trade Policy 
Development (FNDPC),  we are confused by the following : "… It comprises 
representatives of all the ministries with an interest in the subject -matter under 
discussion, the principal economic sectors through their socio -professional 
organizations and representatives of development partners with a resident mission in 
the capital ." Please clarify how this arrangement is handled . Are private sector 
representatives and members of foreign governments part of the FNDCP ? If so, please 
clarify their roles . Are they privy to negotiating documents ? If so, what controls does 
the government pl ace on their possession of such documents ? Which Ministry is in 
charge of the Comoros' accession negotiations ? What is the process for resolving 
disagreements among ministries on issues regarding the Comoros' WTO accession 
negotiations?  
Reply : 
It is ensure d by holding meetings attended by the private sector, civil society , the development 
partners and the government . All the final decisions are taken by the govern ment, but the private 
sector and the development partner are involved for purposes of consultat ion and coordination and 
in an advisory capacity . 
No, they do not have the document in question in their possession . These are official  documents . 
They may not be placed in the hands of representatives of civil society, still less those of 
representatives of foreign governments , even the main development partners . 
It is the  Minist er responsible for foreign trade who handles  the WTO accession negot iations , while 
in the event of a disagreement the matter is submitted to the Council of Ministers . 
Question 54  
Paragraphs 266 -268: We are confused by paragraphs 266 -268. What does the funding 
package, COMESA, the EPA, and "development partners" have to do with the 
commitments that Comoros must make to join the WTO ? W hat process is the 
government describing in these three paragraphs ? What are the Comoros government's 
expectations as they are articulated in these paragraphs ? W hich Ministry is the 
chief  coordinator of the Comoros government's WTO negotiations?  
Reply : 
This commitment will make it possible to conform with  WTO rules . 
 
Within the framework of the Economic Partnership Agreement  (EPA), the government  is expecting 
technical  assistance to enable it to sign fair agreements with the EU i n conformit y with the WTO . 
 
The WTO ne gotiations are being coordinated by the Minist er responsible for foreign trade . 
 WT/ACC/COM/14  
- 33 - 
  3. Division of authority between central and sub -central governments  
Question 55  
Paragraph 270 : The MFTR s tates : "The island authorities formed by each of the islands 
in the Union of the Comoros have other intra -island sub -authorities, namely regional and 
communal authorities."  
 Please confirm whether the island governors, councils and administrations have 
the authority to levy taxes, fees, or charges and what these are.  
 
 Please indicate if the island governors, councils and administrations can grant 
subsidies, and if so, what they are.  
Reply : 
 Tax legislation is assigned to  the Union via the Finance  Law and the islands play a part by 
collecting certain taxes  (e.g. vehicle licence tax, trade tax ). 
 
 Yes, the islands can grant subsidies for the operation of certain  public  institutions 
(education, h ospitals, etc .). 
Question 56  
Paragraph 274 indicates that the Law on competition and prices has been put before the 
Assembly of the Union for adoption . Once again, we encourage the government to 
provide this "Law" to the Working Party before it is adopted so that we can guide the 
Comoros as to its WTO compatibility . In our experience, once a draft law is adopted, it 
becomes far more difficult to amend it, as necessary to ensure that it is WTO -consistent.  
Reply : 
Law on competition adopt ed and enacted  (see document WT/ACC/COM/12  No. 6). 
4. Any legislative  programmes or plans t o change the regulatory regime  
Question 57  
Paragraph 275 : Similarly, we urge the Comoros to provide the following documents to 
the Working Party prior to thei r adoption:  
 Decree establishing the OHADA National Commission (CNO);  
 
 Order establishing the Court of Arbitration of Comoros (CACOM).  
Reply : 
Decree establishing the OHADA National Commission (see document WT/ACC/COM/12  No. 11) 
Order establishing the Court of Arbitration (see document WT/ACC/COM/12  No. 12) 
Question 58 
Paragraph 276 : According to the MFTR, "Further details on proposed legislative or 
regulatory changes have been provided in the appropriate sections of this 
Memorandum."  
 Please provide as soon a s practicable Comoros' own assessment of legislative 
changes that will be necessary to implement WTO provisions.  WT/ACC/COM/14  
- 34 - 
  Reply : 
There have not yet been any changes . 
5. Laws and legal instruments  
Question 59  
Paragraph 277: According to the MFTR, "All laws and legal instruments are published in 
the Official Journal of the Union of the Comoros."  
 Please confirm that all laws, regulations, judicial decisions and administrative 
rulings of general application, pertaining to t he classification or the valuation of 
products for customs purposes, or to rates of duty, taxes or other charges, or to 
requirements, restrictions or prohibitions on imports or exports or on the transfer 
of payments therefore, or affecting their sale, dist ribution, transportation, 
insurance, warehousing inspection, exhibition, processing, mixing or other use, are 
published promptly in such a manner as to enable WTO Member governments and 
traders to become acquainted with them.  
 
 Please indicate the extent to  which Agreements affecting international trade policy 
which are in force between the government (or an agency of the government) of 
the Union of Comoros and entities of the governments of other WTO Members are 
published.  
Reply : 
All laws, decrees and internationa l agreements are published in the Official  Journal.  
IV. POLICIES AFFECTING TRADE IN GOODS  
1. Import  regul ations  
(a) Registration requi rements for engaging in importing  
Question 60  
Paragraphs 286 -287: This section does not provide, in an organized fashion, information 
on what a legal or n atural person must do to conduct business in Comoros . Please 
provide the following information:  
 What form of corporate registration is necessary to conduct business in Comoros, 
for firms and for persons . To whom does one apply for registration ? May 
individ uals register as sole entrepreneurs?  
 
 What is the "business taxation service? " Is it part of the General Tax and Property 
Administration (AGID)? " Is registration for a tax identification number (NIF) the 
same as registration to be a legal person?  
 
 What is the Trade and Personal Property Credit Register (RCCM) ? Why is it held by 
the courts ? Is that where one registers to do business?  
 
 Is the National Investment Promotion Agency (ANPI) a government institution ? 
What is its relationship to the Chambers of Comm erce, Industry, and Agriculture ? 
Are the Administrative Procedure Centres for Business (CFAE) set up in both ? Are 
they set up by the government ? What procedures does the CFAE single window 
administer, e.g., business taxation, NIFs, professional cards, oper ating 
authorizations?  WT/ACC/COM/14  
- 35 - 
  Reply : 
 Obtaining an NIF is mandatory under the decree implementing the Tax Code  (see 
document WT/ACC/COM/12  No. 13) (Articles 199-200). 
 The payment of FC  2,000,000 refers to A rticle 31 of the Tax Code . 
However, the conditions concern ing registration to conduct business are as follows : 
 
 enrol in the Regist er of Commerce  and Companies;  
 have a tax identification number;  
 where appropriate, hold a commercial  card. 
The Business Taxation Service (now the Large Enterprise Directorate ) is a tec hnical directorate 
within the Fiscal Directorate of Tax  and Property . It is responsible for the taxation of all enterprises 
with a turnover of more than FC  50,000,000 and all legal-person companies wha tever the turnover . 
 
The RCCM is a document of the regi stry of the court of first instance in which any company must 
be registered to obtain the legal status of trader . This register includes, among other things, the 
business name and the c apital of the enterprise concerned . 
The ANPI is a government institutio n. It facilit ates business creation and promotion by granting 
concessions accorded within the framework of the Investment Code . 
The ANPI and the chambers of commerce have Administrative Procedure Centres for Business 
(CFAE ). The ANPI has the discretion to issue approvals  (exemption from customs duties , company 
taxes, etc. ), unlike the chamber of commerce which, for its part, assists and supports businesses . 
Yes, they are under government supervision . 
The CFAE provide support with the following procedures : 
 the dra wing up and registration of property -related instruments;  
 authentication by a notary;  
 registration with the RCCM  registry.  
Question 61  
Paragraph 288 : According to the MFTR, "The AGID levies a special activity licence fee on 
the importation of alcohol ic beverages on an annual basis of KMF  1 million, KMF  750,000 
for distributors and KMF  500,000 for bars and restaurants."  
Please clarify how this system operates.  
 Are importers normally wholesale or retail distributors as well?  
 
 If a bar owner wants to imp ort alcoholic beverages, does the owner have to pay 
two licensing fees, one to import and one to sell from his bar or restaurant?  
 
 Are there stores that sell alcoholic beverages (e.g., package stores, grocery stores) 
that are not bars or restaurants ? Would these retail operators be considered 
"distributors?"  
 
 Is it possible for an importer of alcoholic beverages to make the imports available 
to downstream distributors without paying for a distributor's licence?  WT/ACC/COM/14  
- 36 - 
  Reply : 
A distinction  is made  between  import er, distributo r and seller  in accordance with the Law on 
competition . The licen ce fees are as follows : 
 Import ers: KMF 4,000,000  
 Distribut ors: KMF 500,000 
 Sellers :  KMF 250,000 
 
 Yes, an import er can be a distribut or/wholesaler;  
 
 No, since the law does not aut horize this scenario  (a bar owner cannot import alcohol ). 
 
 Yes, there are ; these establishments  are considered to be distribut ors. 
 
 Licens ing fees no, he pays only import duties  and taxes . 
Question 62 (United State s) 
Paragraph 289 states : "The Trade and Pe rsonal Property Credit Register (RCCM) is held 
by the registrar of each court of first instance ruling in trade -related matters, supervised 
by the president or a judge assigned to that role."  
We note that paragraph 330 states tha t "All industrial enterpris es must be entered in 
the Register of Commerce, Companies and Cooperatives  pursuant to the relevant 
provisions of OHADA by submitting the authorization issued by the Ministry of Industry 
and the other documents required by the law and regulations in force . Registration is 
subject to the proper completion of a form by the company in question."  
 What is the relationship of the Register of Commerce, Companies and Cooperatives  
to the RCCM referred to in paragraph 289 ? Which of these constitutes corporate 
registr ation in Comoros?  
Reply : 
Registration takes place as follows . 
 
There is the trade register for natural persons and the trade register for legal persons . 
 
With regard to the procedure for corporate registration in the Comoros , see the reply in 
paragraph  287. 
 
Paragraph 289 : With regard to registration requirements,  the Trade and Personal Property Credit 
Register  (RCCM) is held by the registrar of each court of first instance ruling in trade -related 
matters, supervised by the president or a judge assigned to that role . 
Paragraph 330 : The procedures relating to the granting of authorization for industrial enter prises  
are governed by the laws and regulation s in force establishing certain provisions . All industrial 
enterprises  must be entered in the Register of C ommerce, Companies and Cooperatives pursuant 
to the relevant provisions of OHADA on submi ssion of  the authorization issued by the Ministry 
responsible for  Industry and the other documents required by the law and regulations in force . 
Registration is subjec t to the proper completion of a n appropriate  form by the company in 
question . WT/ACC/COM/14  
- 37 - 
  Question  63 
Paragraph 291 states:  
"Currently, every trader must hold a professional card issued to him by the Ministries  of 
Finance of the autonomous islands."  
 What is the differ ence between registration, getting a NIF, and securing a 
professional card ? Must all businesses obtain these ? What other requirements 
must be met for an entity to do business in Comoros ? What are the fees for these 
requirements?  
Reply : 
Every trader has a profession al card . 
 
What is t he difference between registration, having a compulsory tax identification number (NIF) 
(para . 286) under the s ection  concerning  "Registration requirements for engaging in importing " 
and holding a professional card ? 
 
See paragra ph 286 : Comorian law requires all businesses engaging in import operations to register 
with the business taxation service and obtain a tax identification number (NIF), a prerequisite for 
the customs clearance procedure for goods . 
 
Must all businesses/busin essmen have all these docu ments?  
 
 Yes, they must have these three documents (RC, NIF, profession al card ). 
 
What other requirements must be met for an entity to do business in the Comoros ? 
 
 There are no other requirements.  
 
What are the fees/costs for these  formalities ? 
 
For registering a limited liability company (SARL) the fee is FC  68,500 or €137. 
For a public limited company (SA) the fee is FC 162,000 or €325. 
NIF registration : FC 25,000 
Professional card registration : varies from FC 7,500 to FC 20,000, depending on the profession al 
category . 
Question 64  
Paragraph 293 states : "Operating au thorizations are issued by the ministerial 
department relevant to the regulated activity  …" 
 What are the fees for the authorizations for these regulated activities?  
Reply : 
Operating author izations are required . There is no charge for these  authorizations . 
Question 65  
Paragraphs 286 -294: Are domestic producers subject to all the requirements described 
in these paragraphs?  
Reply : 
Yes, local (domestic)  produc ers are also subject to the requirements of paragraphs 286 and 294. WT/ACC/COM/14  
- 38 - 
  Paragraph 294 : The operator may eng age in activity as an importer  (reference : Investment Code  
(see document WT/ACC/COM/12  No. 1)) 
(b) Charact eristics of the national  tariff  
Question 66  
Paragraph 295  et seq .: 
 How does Comoros define "social products," "economic products" and "fiscal 
products" ? Please name the products, by HTS code and tariff rate that are 
considered "social products" . Please name the products, by HTS code and tariff 
rate that are considered "economic products" . Please name th e products, by HTS 
code and tariff rate that are considered "fiscal products".  
 
 Please also provide a line -by-line copy of Comoros's tariffs (including ad valorem  
duties) and list in a separate column Comoros' indirect tax schedule where such 
taxes (not cu stoms duties) are applied exclusively to imports . Without it, we are 
unable to understand the explanation of Comoros's seemingly complicated direct 
or indirect tariff/tax regime described in this MFTR.  
Reply : 
A 1 - Social p roducts: staples : rice. 
A 2 - Economic p roducts: contribution to employment , export earnings , producti ve capacity , 
performance , development of the sector , emergent  industr y, food security , rural development  
(example: export s that generate foreign currency : vanilla). 
A 3 - Financial p roducts: imports that generate customs revenue : tobacco.  
Harmoni zed 
System  Current 
tariff rate  Tariff rate 
as from 
2015 Contribution to 
revenu e Importance for 
the economy  Social 
reason  National  
support  
02071000  20% 25%  X X X 
02072100  20% 25%  X X X 
02074100  20% 25%  X X X 
03034200  0% 25%   X X 
03037900  0% 25%   X X 
03042000  0% 25%   X X 
09042000  20% 25%  X   
09050000  20% 25%  X   
09070000  20% 25%  X   
87083100  5% 10% X    
87083104  5% 10% X    
25232000  0% 10% X    
 
Question 67 
Paragraph 299 : The MFT R states : "Indirect taxation is based on the levying of duties and 
taxes at import by Customs, and  a system of taxation at import and export, including:  
(1) The single import tax (TUI) based on the c.i.f. value in four bands, namely 0 %, 
50%, 25% and 30 %; 
(2) The specific single tax (TUS), levied on weight, volume and units;  
(3) Special tax on tobacco and alcohol at rates of 180 % for tobacco, and at 200 % 
and 230% for Customs headings 22 -03 to 22 -06, and 22 -07 to 22 -08 
respectively;  WT/ACC/COM/14  
- 39 - 
  (4) A single administrativ e charge (RAU) at two rates : 1% for fully taxed imports 
and 3 % for exempt imports . The RAU is paid to the Financial Administration 
Equipment Fund and is calculated on the basis of customs receipts;  
(5) The regional cooperation tax (TCR), levied at a rate o f 1% of the c.i.f. value 
of imports;  
(6) The single tax on petroleum products including a normal rate of KMF 230 per litre 
of petrol, a  reduced rate of KMF 211 per litre of petrol, a normal rate of KMF 115 
per litre of diesel fuel and a reduced rate of KMF  95 per litre of diesel fuel;  
(7) The single rice import tax at a rate of KMF 40 per kilo of ordinary rice, 
and KMF 150 per kilo of superior quality rice;  
(8) Tax at a single 5 % rate calculated on the f.o.b. value applies to exports of 
essential oils, vani lla and cloves."  
 Is the "taxation" system described in paragraph 299 separate from the system of 
customs tariffs ? Are these import "taxes" applied to imports from other COMESA 
members?  
 
 What is the Financial Administration Equipment Fund ? What does it fund ? 
 
 What activities are funded by the regional cooperation tax ? Are the TCR revenues 
separated or just added to general government funds?  
 
 Why are these charges described in (6) and (7) considered taxes rather than 
tariffs if they are charged only on import s? 
 
 What portion of Comoros' exports are accounted for by essential oils, vanilla, and 
cloves?  
Reply : 
Customs Code of 2015 (see document WT/ACC/COM/12  No. 14) 
The rates : 0%; 50%; 25%; 30% are communi cated ; apart from  customs duty  (CD) and other 
taxes.  
Rates of 0%; 5%; 20% are currently applied  (appli es at COMESA  level). 
It is important  to maintain the rates communicated within the framework of the negotiation 
document.  
 with the ex ception  of CD, all the other  taxes are payable at  COMESA  level;  
 equipment fund s are allocated  to pay  for incentives , purchase of equipment , 
maintenance /computerization,  and institution al support ; 
 financial  activit ies, the TCR: financial contribution  for the regional  institutions 
(separate d). 
 these are specific single taxes  (CD) coll ected at the customs cordon;  
 export share  (vanill a-clove, essenti al oils ) 79.96% (2012 Central Bank report ). 
Tobacco : 250% 
22-03 to 22-06 - 250%: Alcohol 
22-07 - 5%: Ethyl alcoh ol 
22-08 - 250% 
RAU taxed import s: 5% WT/ACC/COM/14  
- 40 - 
  RAU exempt import s: 6% 
Petroleum p roducts: 
 Petrol  230/litre  
 Diesel 115/litre  
 
 Export rate : 0%. 
 
 The regional cooperation tax is used to pay COMESA and WTO contributions;  
 The duties under items 6 and 7  (petroleum products and rice ) are regarded as taxes 
rather than  customs tariffs insofar as they apply only to imports , since they are flat -rate 
taxes;  
 The Financial Administration Equipment Fund is a surcharge assessed on the c.i.f. value 
and is added to the total duties payable at the customs cordon.  
Question 68  
Paragraph 300 states:  
"… Since 2007, under successive finance laws, the TUI has had three different rates : 
0%, 5% and 20 %." 
 How are these TUI rates consistent with the rates listed in paragraph 299(1).  
Reply : 
Since 2007, the Union of the  Comoros  has been aiming at tariff alignment on the COME SA CET. 
It is within this framework  that it adopted a customs tariff with three bands, namely, 0%, 5% 
and 20%. 
Paragraph 300 , which mention s three tariff bands (0 %, 5% and 20%), reflects a well -known 
development  in terms of time and context  relative to wha t is mentioned in paragraph 299 where 
the tariff is four -band (0%, 50%, 25% and 30%). In fact, the concern has been to prepare for the 
introduction of the COMESA Customs Union, whose CET has three bands (0 %, 10% and 25%). 
Thus, the tariff alignment on the CU will not pose a major problem . The TUI data indicated in 
paragraph 299  are no longer valid . Henceforth it is the three -band (0 %, 5% and 20%) tariff that 
applies on Comorian territory . 
On the other hand, with reference to trade policy and within the cont ext of poverty reduction  
(reference flexibilit y accorded to LDCs , Development Goal ), some products necessarily require  
protection . 
Question 69  
Paragraph 301 states : "Overall indirect taxation accounts for up to two thirds of State 
revenue, illustrating the  high dependency on imports and exports."  
 Does Comoros' reference to "indirect taxation" in this paragraph include revenues 
collected as import duties/customs tariffs, or are these revenues distinct from 
those from the collection of the customs tariff?  
Reply: 
The indirect  taxation referred to in this paragraph  also includes customs duties . Details of the 
constituents of indirect taxation are given in paragraph 299.  
It should be noted  that indirect  taxation accounts for two thirds of State revenue . WT/ACC/COM/14  
- 41 - 
  The taxes  (other than the customs tariff ) paid by import ers are the same as those paid by locals at 
domestic level for similar produ cts. 
Question  70 
Paragraph 306 states : "In addition to import duties, the TC, the Advance Tax Payment 
(AIT) and the additional tax le vied by the Chamber of Commerce, Industry and 
Agriculture (CCIA) are levied at Customs . The TC is charged at a 10 % rate on the basis 
of the c.i.f. value plus the TUI or the TS . The rate of AIT and the CCIA additional tax is 
1% of the c.i.f. value of import s. Ad valorem  duties apply to many products and rates 
vary from 5 % to 250 %." 
 What are "the Advance Tax Payment (AIT) and the additional tax levied by the 
Chamber of Commerce, Industry and Agriculture (CCIA) …levied at Customs." ? 
Are they levied only on impo rts? 
 
 Are the ad valorem  duties, referenced in this paragraph, customs duties, 
e.g., subject to the COMESA common tariff?  
Reply : 
 The Advance Tax Payment (AIT) and the additional centime of the Chamb er of Commerce, 
Industr y and A griculture (CCIA) are levied  at Customs . These taxes are levied only on 
import s, at the rate of 1% of their c.i.f. value . 
 
 The COMESA  CET is not yet being applied . In fact, the COMESA  CET is fundamental for  the 
implementation of the Customs Union . Therefore the customs duties mention ed here are 
national duties . 
Questio n 71 
Paragraph 313 states : "Since February  2008 the Customs authorities have been using 
ASYCUDA++ software, an upgrade to ASYCUDA 2.7 as a result of an assistance package 
from COMESA and UNCTAD."  
 Please describe, in deta il, how Comoros has implemented ASYCUDA in its customs 
system.  
Reply : 
It is a question of a move from ASYCUDA  2.7 to ASYCUDA ++. With technical and financial support 
from COMESA and UNCTAD , Comorian Customs completed the transition process in  2008,  as 
follows: 
1 - Study in  2006. 
2 - Training 2007. 
3 - Installation  of the software . 
4 - Commencement of implementation of the project 2008.  
Question 72  
Table 13 : Revenues collected and expenditure by the State, 2005 -2011  
 2005  2006  2007  2008  2009  2010  2011  
Tax re venue  17,797  17,259  16,678  18,288  20,515  22,449  23,520  
Direct and indirect 
taxes  4,305  4,784  7,147  6,790  10,867  11,514  12,412  
International trade  10,989  8,533  5,984  9,169  9,648  10,935  11,108  
 WT/ACC/COM/14  
- 42 - 
   Please list all categories of taxation covered by "Direct and  indirect taxes," 
i.e., specifically what direct and indirect taxes make up the revenues reported . 
Please also provide the current  level of the taxes for each category of tax.  
Reply : 
Customs Code 2015 (see document WT/ACC/COM/12  No. 14) 
List of categories  of taxation  (direct  taxes/indirect  taxes ) 
1. Customs Duty  (CD) 
2. Single Adm inistrative Charge  (RAU)  
3. Advance Tax Payment (AIT) 
4. Chamber of Commerce, Industry and A griculture (CCIA)  
5. Regional  Cooperation Tax (TCR)  
6. Consumption Tax  (TC) 
7. Import Trade Tax  (PI) 
8. Excise D uties (Dac)  
9. Specific Customs Duties  (DDS)  
10. Corporation Tax  (IS) 
11. Income Tax  (IR) 
12. Profession al Taxes  (IP) 
In 2014, with a budget revenue of KMF  38.6 billion , the taxes on foreign trade amounted to 
7.3 billion . This correspond s to nearly 19% of total bud get re venue . 
Question 73 
With regard to "International trade," please confirm what tariffs, fees, and charges 
make up the revenues reported . Please indicate the current  level of each of the 
non-tariff fees and charges listed, and their purpose.  
Reply : 
In 2014, w ith a budget revenue of KMF 38.6  billion , the taxes on foreign trade amounted to 
7.3 billion , which  corresponds to nearly 19 % of total budget revenue.  
 
Question 74  
Paragraph 316 states : "There are several advantages to the implementation of the 
ASYCUDA++ s ystem in the Union of the Comoros …" 
 As this system has been in place since 2008 (see paragraph 313), please describe 
the database of import valuation that has been developed as a result of using this 
system.  
Reply : 
Description of the import valuation data base (ASYCUDA ++): 
 Customs database ; 
 Financial database ; 
 Economic database ; 
 Loss of revenue database . WT/ACC/COM/14  
- 43 - 
  Question 75  
Paragraph 320 states : "The Union of the Comoros applies MFN rates to non -COMESA 
imports of goods on  a four-band COMESA CET adopted at Nairobi i n May 2008 by the 
Council of Ministers regardless of  the country of origin:  
capital goods : 0% ; 
capital goods : 0% ; 
intermediate products : 10%; 
finished products : 25%." 
 
 What is the difference between the first two categories, both of which are labeled  
as "c apital goods? " Is one of the categories supposed to be "raw materials?"  
Reply : 
It is important to bear in mind that the COMESA  CET is not yet being applied . A mistake has indeed 
slipped into the document . In fact, the CET has four bands with the following rates: 
 raw materials : 0%; 
 capital goods : 0%; 
 intermediate produ cts: 10%; 
 finished produ cts: 25% 
 
Question  76 
Paragraph 321 : Could the Comoros please clarify the situation with regard to the interim 
EPA and correct the text accordingly ? It is stated that th at Comoros has signed the 
interim EPA while in reality it has only concluded negotiations of the interim EPA, but 
has neither signed nor ratified the agreement (which is now in provisional application 
since May 2012 by the EU and 4 ESA signatory countries - Mauritius, Madagascar, 
Seychelles and Zimbabwe) . Is the stated tariff reduction of 80 % on a progressive basis 
over a period of 15 years applied in practice?  
Reply : 
1. Comoros  has only initialled the interim agreement . 
2. The 80 % reduction in customs duti es has not been applied in practice since the signature will 
come once the ESA region has concluded a complete  EPA. 
The Comorian government  envisages signing the interim agreement between now and the first half 
of 2015, pending  the complete agreement which  has not yet led to concrete negotiations . 
 
(c) Tariff  quotas, tariff  exemptions  
Question 77  
 Other than tariff preferences granted to members of the IOC and COMESA, what 
other tariff exemptions are granted and on what imports?  
Reply : 
The Union of the Comoros  does not apply tariff preferences to other territories even though it is a 
member of the GAFTA and IOC . It grants tariff  exemptions only to imports of produ cts of 
COMESA  origin . 
Other specific tariff exe mptions : 
 Benefits linked with the Investment Code to promote investment;  
 Vienna Convention  on Diplomatic Relations  (duty-free privileges for the diplomati c corps);  
 Computer and photovolt aic equipment.  WT/ACC/COM/14  
- 44 - 
  Within the context of regional integration  policies , imports of COMESA  origin are subject to customs 
taxes , as well as to the regional integration contribution tax . At the same time, a charge of 1 % of 
their c.i.f. value is levied on these imports . It is possible that a mistake has been made within the 
context of the WTO . In this latter event, not only is the  Union of the Comoros  not yet a member , 
but, more particularly, the objective of this organi zation is not the establishment of a n FTA. 
In fact, the tariff exemption  is applied to goods coming from COMESA solely under the free trade 
agreement . 
(d) Other duties and charges  
Question 78  
Paragraph 323 : The MFTR states:  
"In addition to duties and other charges, imports may also be the subject of various 
charges to certain trad e organizations (COMESA, IOC and WTO) of 1 % of the c.i.f. value, 
and a single administrative fee against which various contributions are allocated under 
the finance law in force  …" 
 Please explain precisely the charges on imports applied on behalf of COMESA , IOC, 
and WTO.  
Reply : 
Within the context of regional integration policies, imports of COMESA origin are subject to customs 
taxes, as well as to the regional integration contribution tax . At the same time, a charge of 1 % of 
their c.i.f. value is levied on these imports . It is possible that a mistake has been made within the 
context of the WTO . In this latter event, not only is the Union of the Comoros not yet a member, 
but, more particularly, the objective of this organization is not the establishment of a FTA. 
(e) Quantitative export r estrictions  
Question 79  
 Is this section "Quantitative import  restrictions?"  
Reply : 
This section (e) does indeed concern quantitative  import restrictions . A translation error may have 
crept in . The French version speaks of quan titative import restrictions , not export restrictions  as 
indicated in the English  version.  
 
Question 80 
Paragraph 325 : The MFTR states:  
"… Notwithstanding, some goods listed below are subject to international trade 
restrictions relating to : the application  of Security Laws and  Regulations ; the control of 
arms, ammunition and other war equipment and military items ; the protection of 
human, animal or plant health or life ; protection of public morality ; the transfer of gold, 
silver and precious and semi -precio us stones ; the protection of national artistic 
and cultural property ; the control of narcotics, hazardous and toxic waste, nuclear 
materials, radioactive products or any other materials used in the development or 
exploitation of nuclear energy.  
 Please prov ide a list of all such products and give the legislative citation that 
authorizes these restrictions.  WT/ACC/COM/14  
- 45 - 
  Reply : 
The produ cts mention ed here as being subject to trade restrictions are, generally speaking, to be 
found at the international  level. However, there are no specific domestic regulations that govern 
them. 
On the other hand, there are quantitative  import  restrictions under  Article 8 ( Law on competition ). 
However , a list has not yet been drawn up . 
(f) Import licensing p rocedures  
Question 81  
Paragraph 326 states : "... It is not currently necessary to obtain prior authorization to 
engage in external trade . It should be noted that an import licence for superior quality 
rice was introduced in 2012  under the finance law . There is one exception to that rule . 
Since 2005 the finance law in force has provided for the issuance by AGID of an import 
licence for alcoholic beverages . The import and sales licence is issued annually subject 
to payment of a dut y of: 
 
i. KMF 4  million  for importers;  
ii. KMF 500,000 for distributors ; and 
iii. KMF 250,000 for bars and restaurants. " 
Reply : 
It is necessary to obtain authorization to engage in external  trade by providing the following 
items : 
i. entry in the Register of C ommerce;  
ii. tax identification  number ; 
iii. professional card . 
Question 82 
Paragraph 288 states that "The AGID levies a special activity licence fee on the 
importation of alcoholic beverages on an annual basis of KMF 1  million , KMF 750,000 for 
distributors and KMF 500,000 for  bars and restaurants ." 
 
 What is the relationship of the fees listed in paragraph 288 and the fees listed 
here, in paragraph 326 ? Are they the same fees ? If so, what is the correct amount 
for each?  
Reply : 
There is a distinction between  import er/distribut or/sellers in accordance with the Law on 
competition . The licence fees are as follows : 
 Import ers: KMF 4,000,000  
 Distributors : KMF 500,000 
 Sellers : KMF 250,000 
Comoros' import licensing regime : 
Question  83 
In order to fully grasp Comoros's import licensing r egime, we request that the 
government fill out the Import Licensing Questionnaire for all licensing required for 
goods and activities related to importation or exportation.  WT/ACC/COM/14  
- 46 - 
  Reply : 
Reply  to the Import Licensing Questionnaire . 
(h) Customs v aluation  
Question  84 
Paragraph 336 : The MFTR states:  
"A new Customs Code is being drafted . It is envisaged that the draft Code will include 
the provisions of the WTO Customs Valuation Agreement . However, the Union of the 
Comoros will req uire a transition period, during which it will draft the applicable laws 
and regulations relating to the GATT valuation system  …" 
 Comoros should share the relevant portions of its draft legislation implementing 
WTO provisions on customs valuation with the Working Party . Specifically, the 
Working Party should be provided with all relevant portions of the Customs Code 
and implementing regulations as soon as possible for review and comment.  
Reply : 
The transition  period has not been determined since the impleme nting texts for the new 
Customs Code have not yet been adopted . However, the transition period will not exceed 3 years in 
relation to the commitments made by the government . 
Question 8 5 
Paragraph 336 : Could the Comoros please indicate the length of the tra nsitional period 
that it intends to request in order to ensure alignment of its laws and regulations with 
the GATT valuation system ? Does Comoros already have  a concrete request for technical 
assistance in this respect?  
Reply : 
A new Code has now been adopt ed by Parliament but has not yet been enacted . 
Question duly answered on the Customs Valuation Questionnaire.  
Question 8 6 
Paragraph 338 The MFTR states:  
"The Union of the Comoros also applies a reference price and a minimum taxable price 
for certain import ed goods as part of efforts to combat fraud and guarantee State 
revenue."  
 Please provide the reference price and minimum taxable price data by tariff line.  
Reply : 
See the Customs Valuation Q uestionnaire . 
Question 8 7 
Paragraph 338 : Could the Comoros please provide the list of imported goods to which it 
applies a reference price and a minimum taxable price?  WT/ACC/COM/14  
- 47 - 
  Reply : 
Question answered in the Sanitary and Phytosanitary Measures Q uestionnaire . 
Question 8 8 
Paragraphs 333 et seq . With regard to customs valuation, th e MFTR indicates that the 
Comoros Customs legislation uses the Brussels Definition of Value.  
 When will Comoros draft the new Customs legislation implementing the WTO 
Customs Valuation Agreemen t (CVA) (Articles 1 -9 which cover the determination 
of customs v alue) and the interpretative notes?  
 
 We urge the government to work with us on the draft for the purpose of ensuring 
its WTO consistency prior to adoption.  
 
 Please provide responses to the Custom Valuation Questionnaire as soon as 
possible prior to the mee ting of the first Working Party.  
Reply : 
Taking into account the reply to the question concerning  para. 333, we note that all these 
questions and requests are  formul ated in connection with the WTO Customs Valuation  Agreement . 
However, Comoros  is not yet a m ember of the WTO and the implementing legislation for the new 
Customs  Code is not yet in force . 
 
Question  89 
Based on our review of Ordinance No. 92-008/PR of 7 September  1992 on the 
Customs  Code, and  Customs Code, updated 2002 (2/84), we request responses  to the 
following questions:  
 (1) Per Article 10 of the CVA, all information that is provided on a confidential 
basis for the purposes of customs valuation shall not be disclosed by the Customs 
authorities without the specific permission of the person unles s it is required to be 
disclosed in the context of judicial proceedings . Please indicate which provision in 
the Comoros legislation implements Article 10 of the CVA.  
 
 (2) Per Article 11 of the CVA, the right to appeal a determination of customs value 
must be without penalty . Article 11 also requires that the notice of the decision on 
appeal must be given to the appellant in writing . Please indicate which provision in 
the Comorian legislation implements these CVA requirements.  
 
 (3) Article 12 of the CVA requ ires WTO Members to publish their valuation laws in 
accordance with Article X of GATT 1994 . Please indicate which provision in the 
Comorian legislation implements Article 12 of the CVA.  
 
 (4) Article 13 of the CVA provides that if it becomes necessary to de lay the final 
determination of customs value of imported goods, the importer must be able to 
withdraw them from customs if the importer provides sufficient guarantee 
covering the ultimate payment of customs duties . Please indicate which provision 
in the Co morian legislation implements Article 13 of the CVA.  
 
 (5) Per Article 16 of the CVA, an importer has the right to an explanation in writing 
as to how the customs value of his/her goods was determined . Please indicate 
which provision in the Comorian legisla tion implements Article 16 of the CVA.  WT/ACC/COM/14  
- 48 - 
  Reply : 
These questions and requests are formulated in connection with the WTO Customs Valuation 
Agreement . However, Comoros is not yet a member of the WTO and the implementing legislation 
for the new Customs Code is n ot yet in force . 
 
(i) Other customs formalitie s 
Question  90 
Paragraph 344 : According to the MFTR,  
"Exemptions, the result of legal provisions, seek to encourage economic activities in 
specific productive sectors  (industry, fisheries, agriculture, tourism, transportation and 
communications) ; the development of national infrastructures (ports, airports and 
roads) ; and certain agencies and persons who are essentially importers (the State, the 
diplomatic corps, inter national organizations, charitable bodies, grant and aid 
institutions, gifts, aides, travellers, emigrants returning definitively, etc.)."  
 
 We request that Comoros elaborate this information, listing all current tariff 
exemptions by tariff line and by reci pient of the benefit, including information on 
any requirements to receive these benefits,  e.g., use of local materials in 
production or export performance.  
Reply : 
In accordance with the Vienna C onvention and diplomatic  privilege Art. 39 CC and the special  
provisions concerning the Diaspora (r ef. Customs C ode, Art. 42 and Arts . 44, 45 and 46) 
Question 9 1 
Paragraph 348 states:  
"… industrial warehousing (Articles 131 to 136 of the Customs Code), an establishment 
under the control of the Customs authorities wh ere enterprises active in exports or in 
both exports and the domestic market can receive authorization to release goods 
conditionally relieved from payment of import duties and taxes."  
 Please explain the circumstances under which such warehouses operate.  
 
 Please give specific examples of enterprises' past or current usage of this 
measure.  
Reply : 
These industrial warehouses are not yet in place . 
The 2015 Customs Code provides for the establishment of industrial warehouses in its A rticle 131 
et seq. 
Question 92 
Paragraphs 352 -354 state:  
"To that end the legislation will incorporate the now universal definition of free -zone 
enterprises, namely that free -zone enterprises are enterprises created to produce and 
trade in goods and services exclusively for export.  WT/ACC/COM/14  
- 49 - 
  Generally two categories of free -zone enterprises will have legal recognition:  
- suppliers of services ; and 
- producers of goods.  
Production free -zone enterprises operate as industrial warehousing under the Customs 
Code . In conformity with the rules in that  regard, the Ministers for Finance and Trade 
may by joint act  authorize a free -zone enterprise to sell up to 15 % of its previous year's 
output on the local  market."  
 Production in Comoros' free zones will be fully subject to WTO provisions . In this 
regard:  
 Any free -zone regulations that mandate exportation will make the benefits 
available to firms locating there prohibited subsidies . Sales of goods produced 
in the free -zones into the rest of Comoros must not be limited, as long as the 
tariffs, taxes, and cha rges exempted on imports into the zones are reapplied 
when such goods or goods produced from these imports are sold into the rest of 
Comoros.  
 
 Please provide draft legislation that Comoros intends to enact for free zone 
enterprises.  
 
 Please provide the res ponses to these questions and comments in the section of 
issues entitled "Free zones."  
 
Reply : 
Strictly speaking, there is no le gislation  and, consequently, no regulations on free zones in the 
Union of the  Comoros . 
(k) Application  of internal taxes on impo rts  
Question  93 
In paragraph 365, the MFTR stated that seven internal taxes are currently applicable to 
imports, but they will be  eliminated within certain time -limits upon the implementati on 
of the value added tax . What is the time -limit for implementing the VAT and when are 
the internal taxes expected to be eliminated?  
The international community embraces approaches to biotechnology that are 
transparent and based in science . Does Comoros h ave an in place procedure for 
determining whether genetically modified seeds or planting materials are in conformity 
with the laws issued concerning the importation of genetically modified plants and other 
pertinent directives ? Will Comoros supply a copy o f its laws with respect to genetically 
modified organisms for our review?  
Under the Cotonou Partnership Agreement of 2000 and Interim Economic Partnership 
Agreement with the European Commission, Comoros liberalized trade in 80 % of goods . 
In paragraph 469, Comoros stated that sensitive products accounting for approximately 
20% of trade were not liberalized . What products were defined as sensitive?  WT/ACC/COM/14  
- 50 - 
  Reply : 
Table 2 : List of sensitive  produ cts 
H.S. DESCRIPTION OF  
PRODU CT COMOROS  
TARIFF 
RATE  COMESA  RATE  DIVERGENC E 
IN % CRITER IA USED  
94 04 21  Mattresses  5% Not included   Emergent i ndustr y 
34 01 19  Soap  20% 25% 5% Emergent industry  
03 02 19  Fish 0% 0% 0% Contribution  to 
employment  
21 01 11  Essenti al oils 20% 25% 5% Currency savings  
24 01 10  Tobacco  20% 0% -20% Contribution to 
revenue  
22 03/22 04  Alcohol 20% 25% 5% Contributio n to 
revenue  
24 02 10  Cigarette s  20% 25% 5% Contributio n to 
revenue  
27 02 10  Hydrocarb ons 0% 25% 25% Contribution to 
revenue  
72 16 50  Angles, shapes and 
sections  20% 10% -10% Incentives for  
construction and 
public works 
sectors  
60 07 90  Tiles 5% 25% 20% Incentives for 
construction and 
public works 
sectors  
48 05 60  Paper  5% 10% 5% Cultura l criteria  
27 11 21  Natural g as  20% 25% 5% Social criteria  
15 16 10  Animal  fat 0% 10% 10% Social criteria  
15 16 20  Oils 0% 25% 25% Social criteria  
17 01 91  Sugar  0% 25% 25% Social criteria  
11 01 00  Flour 0% 10% 10% Social criteria  
04 05 10  Butter  0% 25% 25% Social criteria  
44 13 00  Wood  0% 10% 25% Social and health 
criteria  
49 01 10/  
49 02 10 Books, novels and 
other library 
documents   25%  Cultural criteria  
 
Question 9 4 
Paragraph 372 states:  
"In 2009, a duty -free shop opened as part of the process to develop the principal 
international airport . It is not subject to a duty -free levy on com mercial operation . It 
has been suggested that such a levy could be charged at the rate currently applied in 
other countries, equivalent to a 4 % ad valorem  charge on the gross value of goods 
traded by the duty -free shop."  
 What kind of goods, imported or dom estically produced, does the duty -free shop 
sell? 
 
 What is the approximate annual turnover of the duty -free shop?  
Reply : 
The duty -free shop in the airport sells imported goods and especially cosmetics , alcohol , perfumes 
and cigarettes . A few local craft pr oducts are also sold there . It has a turnover of 900 euro s 
per month . WT/ACC/COM/14  
- 51 - 
  (l) Rules of origin  
Question 95 
Paragraph 381 states:  
"… Pursuant to the COMESA Protocol on rules of origin, in determining eligibility for the 
preferent ial tariffs of the common market, goods will be accepted as originating in a 
Member State for the purposes of eligibility on the basis of the five following criteria or 
methods  ..." 
 Must all of the five criteria be met, or only one or two?  
Reply : 
In accord ance with the COMESA  protocol  on rules of origin, goods are deemed to be of COMESA 
origin if they meet one of the five criteria . That is to say that a single criterion is sufficient in itself 
to confer COMESA  origin on the goods . 
Question 9 6 
Paragraph 381 also says:  
"… as a result of the process of production, the goods are classified under a tariff 
heading other than the tariff heading under which they were imported  …" 
 Please clarify the nature of the re -classification, e.g., would this be a shift from 
one 4-digit classification to another?  
Reply : 
In accordance with the COMESA protocol on rules of origin, goods are deemed to be of COMESA 
origin if they meet one of the five criteria . That is to say that a single criterion is sufficient in itself 
to confer CO MESA origin on the goods.  
Question 97 
Paragraph 384 states that "The criterion of sufficient processing may give rise to:  
  a change in nomenclature classification  …" 
 At what digit -level of description would such change occur?  
Reply : 
The COMESA  Protocol  on Rules of Or igin ( see document WT/ACC/COM/12  No. 15) defines the tariff 
heading as the first division of a Chapter in the Harmonized System that includes the first 
four numerical codes and their descriptions . Thus, the reclassification of a product in a new  tariff 
heading is carried out at the 4 -digit level of classification.  
 
(n) Countervailing duty regime  
Question 9 8 
Paragraphs 387 -389: 
 Does Comoros apply either antidumping (AD) or countervailing duties (CVD)  to 
imports ? If so, please identify how complaints are brought, to what agency of 
government, and what the rules are for investigations, rulings, and right of appeal . WT/ACC/COM/14  
- 52 - 
  Does Comoros have a definition of "industry" for the purpose of applying AD or 
CVD remedi es? 
 
 In its discussion of its antidumping and countervailing duty regimes, the 
government advises that these regimes are governed by the country's 
undertakings to COMESA, the Cotonou Agreement and the EPA.  
 Please provide the details of Comoros' undertaking s with respect to COMESA, 
the Cotonou Agreement and the EPA in this regard.  
 
Reply : 
The Union of the  Comoros  does not have any national  regulations on a nti-dumping  and 
countervailing  measures . Nevertheless, as a member of COMESA, under  Article 10 of the Tr eaty, a 
regulation binds all the member States in its entirety . Thus, trade regulation measures such as 
anti-dumping and countervailing duties have the force of law and are  applicable  at national  level. 
Failing a dedicated agency, it is the Foreign Trade D irectorate that is responsible for any operation 
relating to the administration of anti-dumping and countervailing duty measures . 
Apart from the provisions contained in the COMESA  Treaty on the FTA , in November  2001, the 
COMESA Council of M inisters adopt ed, under Article 10 of the COMESA  Treaty , a Regulation  on 
Trade Remedy Measures  called the Principal  Regulation . Thus, this is an  instrument binding on the 
COMESA  member States in conducting their  trade remedy  investigations . Its aim is to ensure 
uniformit y among COMESA member States  in conducting their investigations in connection with 
trade remedies  and to see to i t that, as far as possible, the se investigations are conducted in 
harmony and within the framework of the WTO Agreement on Safeguards . It establ ishes rules for 
the conduct of  trade remedy  investigations and for the application of trade remedies . It also 
specifies th eir scope and the link with the national le gislation adopt ed to  implement the 
WTO Agreements . 
However, an anti-dumping  law is in the p rocess of being drafted . 
- Art. 51 of the COMESA  Treaty.  
Question  99 
Paragraph 387 : Taking into account that Comoros has neither signed nor ratified the 
EPA, could the Comoros please clarify the situation and, if necessary, amend the text?  
Reply : 
Comoros  has signed an interim agreement with the European Union.  
Question 100 
Paragraph 389 : Taking into account that Comoros has neither signed nor ratified the 
EPA, could the Comoros please clarify the situation and, if necessary, amend the text?  
Reply : 
Under Art icle 10 of the COMESA  Treaty , a regulation binds all the member States in its entirety, 
and a Regulation on trade remedy measures called the Princip al Regulation was adopted in 
November  2001 by the COMESA  Council of Ministers . WT/ACC/COM/14  
- 53 - 
  (o) Safeguard regime  
Question 10 1 
Paragraph 390:  
 Please name the international commitments that have legal force with respect to 
Comoros' administration of safeguards . Please cite the national law and provide 
the text of that law, which gives the  government the authority to administer its 
safeguard regime in accordance with its international commitments.  
 
 When Comoros states that "There is no national legal or regulatory basis 
underpinning the safeguard regime, does this mean that there is no poss ibility of 
Comoros bringing a safeguard action because it has no legal authority, or could a 
safeguard action be taken without specific legislation if the government decided to 
do so?  
Reply : 
Commitments undertaken at regional  level have the force of law at  national  level. In the absence of 
an authority dedicated to the safeguard regime, it is the Directorate of Foreign Trade which 
performs that function . 
 
Nevertheless, this national leg islation on safeguard measures is in preparation . 
 
2. Export re gulation  
(b) Customs tariff nomenclature, types of duties, duty rates, weighted average of rates  
Question 102 
Paragraph 394 : According to the MFTR, "Export duties have not been levied on vanilla or 
cloves for several years."  
 Are there any export duties in place in Comoros , e.g.,  on essential oils or other 
exports?  
Reply : 
All exports are exempt from any export tax . 
(d) Export licensing procedures  
Question 10 3 
Paragraph 396 states that "The General Tax and  Property Administration levies only a 
trade tax specific to taxpayers engaged in imports and  export s. 
 Please identify and describe the "trade tax specific to taxpayers engaged in 
imports and exports ." W hat is the name of this tax ? For what is it charged, and 
how is it enforced?  
Reply : 
Any natural or legal person engag ing, in the Comoros , in a trade , industry or profession no t 
exempt ed under Article 164 of the General Tax Code is subject to the trade tax contribution . The 
trade tax is payable for the whole year by any person engaged in a taxable activity on the first of 
January of that year . The trade tax  must be paid spontaneously , as from the first of January and at 
the latest before March  31 of the year in question, to the competent  services  of the 
Directorate -General of Taxes. WT/ACC/COM/14  
- 54 - 
  Question 10 4 
Paragraph 397 states that, "There are plans, however, to introd uce an import and export 
licensing regime administered by the external trade services in order to regulate the 
economy and control the flow of lawful trade that is being undermined by a growing 
informal sector."  
 
 Please describe these plans in detail, incl uding the scope of products that will 
be subject to the requirement, whether the licenses will be automatic or 
non-automatic, the fee for their issuance, the issuing government agency, the 
procedures to acquire the licence, the duration of the licence, and  the 
provisions for administrative and judicial appeal.  
 
 Please elaborate on the situation that makes Comoros believe that it needs 
such a system.  
 
 Please describe why it is necessary for importers to have a special licence for 
"superior quality" rice impo rts. What is the fee for this licence ? How often must 
an importer apply for this licence?  
 
 Are there any restrictions on who can apply for an import licence for alcoholic 
beverages?  
Reply : 
The plans  will be drawn up with refe rence to the trade policy, the Law on competition  (Art. 8), the 
Tax Code , the Food Law , the Investment C ode, and the Law on statutory weights and measures:  
 as an LDC since  1977, the Union of the Comoros  needs flexibilit y with a view to supporting 
its economy ; 
 
 economic and fiscal object ive; 
 
 the import  licence  for super ior quality rice costs FC 2,000,000; 
 
 this import  licence is renewable annually ; 
 
 yes, there are restrictions on the importation of alcoholic beverages ; 
 
 4,000,000 import ers; 
 
 500,000 distribut ors; 
 
 250,000 sellers.  
The costs are the same . 
(f) Export financing, subsidy and promotion policies  
Question 10 5 
Paragraph 399 : Comoros states:  
"… as part of the accession of Comoros to the WTO, there are plans to adopt  a specific 
law on incentives to export or re -export goods and services."  
In what time -frame does Comoros plan to adopt such a law ? We urge the Comoros to 
keep the Working Party advised of its drafting activities in this regard, including the 
sharing of dr afts prior to adoption . We emphasize that this is in Comoros' best interest 
so that it doesn't ultimately adopt a law that is inconsistent with the WTO and, thus, will 
need to be changed prior to Comoros' accession.  WT/ACC/COM/14  
- 55 - 
  Reply : 
For the time being, the Comorian econom y is dependent on three export products . These exports 
are decreasing with the passing years , while at the same time import s are increasing exponenti ally. 
Consequently , the trade  balance  is structurally in deficit . Therefore, to promote exports , the 
government  is seeking  means of providing an incentive . 
Once a first draft is ready, it will be shared with, among others, the Working Party for comments 
and suggestions on keeping in line with WTO rules . 
Question 10 6 
Paragraph 400 : Comoros states:  
"The Uni on of the Comoros promotes its exports and re -exports through the Chamber 
of Commerce, Industry and Agriculture (a public sector professional body under the 
law), the  Economic Interest Grouping " Maison des Épices ", which acts as an umbrella for 
socio -profe ssional organizations in the sectors and industries concerned, and the 
National Investment Promotion Agency."  
 Please describe how the government funds its export and re -export promotion 
activities through each of these groups . Please confirm whether each o f the named 
groups are government entities.  
Reply : 
 The Union of Chambers of Commerce, Industr y and Agriculture , a public sector professional 
body, acts as the interface between the private sector and the authorities . It operates under 
a State subsidy , but is independently managed, through the additional tax, i.e. the tax of 
1% of the c.i.f. value of goods imported into the Comoros . 
 
 The Economic Interest Grouping "Maison des Épices"  was set up within the framework of a 
project financ ed by the European Union  for the promotion of cash crops . It benefited from 
the financial support of donors enlisted by the government , but failed to survive after the 
project phase . 
 
 The National  Investment Promotion Agency is an independently  managed public sector  body. 
It is subsidized by the State . 
 
(g) Export performance requirements  
Question 107 
Paragraph 402 : According to the government:  
"The Union of the Comoros has no export performance requirements other than the 
statutory  obligation to surrender foreign exchange from export transactions within 
30 working days calculated from the date of receipt of the foreign exchange to the 
exchange office at the Central Bank of Comoros, in conformity with the external trade 
and exchange control regulations, and the legislation on financial relations with other 
countries."  
 Please explain how the Comoros considers this requirement to be consistent with 
the WTO . By what provisions of the WTO Agreements does the government 
consider this statu tory obligation to surrender foreign exchange from export 
transactions to be WTO -consistent ? Please provide to the Working Party the 
Comorian statute – the text and the specific citation – that provides the 
government with this authority.  WT/ACC/COM/14  
- 56 - 
  Reply : 
This requi rement is linked with our monetary cooperation agreement with France (A greement on 
Monetary Cooperation with F rance).  
(h) Import duty drawback schemes  
Question 108 
Paragraphs 403 et seq. : How is Comoros' duty drawback system consistent with 
Annex  I, Illustrative List of Export Subsidies, (i), of the Subsidies and Countervailing 
Measures (SCM) Agreement . Annex III of the SCM Agreement further states that  
"Drawback systems can allow for the refu nd or drawback of import charges on inputs 
which are consumed in the production process of another product and where the export 
of this latter product contains domestic inputs having the same quality and 
characteristics as those substituted for the importe d inputs . Pursuant to paragraph (i) of 
the Illustrative List of Export Subsidies in Annex I, substitution drawback systems can 
constitute an export subsidy to the extent that they result in an excess drawback of the 
import charges levied initially on the i mported inputs for which drawback is being 
claimed."  
 Please provide the Comorian rules and regulations governing the implementation 
of its duty -drawback system.  
 
 How does Comoros ensure that the "drawback" refunded does not exceed the 
original amount of ta x/tariff?  
Reply : 
 
These refunds are calculated on the basis of the value added . 
 
3. Internal policies affecting foreign trade in goods  
(a) Industria l policy  
Question  109 
Paragraph 408 et seq .: Comoros states that the government's industrial policy 
"emphasizes  agribusiness and export led growth to add value to agricultural production 
and satisfy domestic demand and, ultimately, exter nal demand . One of the objectives of 
the policy is to stimulate the development of an industrial and entrepreneurial sector 
that is capable of spurring growth and creating the conditions necessary for 
modernization and business competitiveness."  
 Are the go vernment's incentives contingent upon export ? Please enumerate the 
incentive schemes to which the government refers in paragraph 409 . 
Paragraph  410 provides examples of exemptions from which approved projects are 
entitled . Please provide to the Working Par ty the laws, including their texts and 
specific citations to the texts, which provide for "exemptions from Customs duties, 
consumption taxes and general customs emoluments on the import of construction 
materials, machinery, equipment, instruments and utens ils, handling and 
transportation equipment, when destined for authorized industrial projects ." How 
are the "projects" of registered enterprises approved?  
Reply : 
Paragraph  409 refers to the benefits granted under the Investment Code to which paragraph  410 
also alludes . WT/ACC/COM/14  
- 57 - 
  If an enterprise is enrolled in the Register of Commerce and approved by the ANPI, it benefits from 
the advantages of the Investment Code as follows : 
 
Regime A  
 
Regime A is reserved for enterprises:  
 
(a) submitting an investment programme for between FC 5,000,000 and FC 100,000,000 ; 
 
(b) submitting a significant job creation programme that gives preference to the recruitment of 
Comorian nationals . 
 
Approval for regime  A confers the following rights and benefits : 
(a) application of a reduced max imum rate to the Single Administrative Charge (RAU) on 
imports of equipment  and materials specifically intended for production or operation within the 
framework of the programme approved , for a period of 7  years ; 
 
(b) exemption from turnover tax for equipm ent and materials specifically intended for 
production or operation within the framework of the programme approved , for a period of 7  years ; 
 
(c) in relation to profits tax, approved enterprises are authorized to deduct from the taxable 
profit 100 % of the investment made . These deductions may be spread over 5 successive tax 
years, at the end of which the balance of the tax credit authorized and unused may neither be 
allocated nor reimbursed ; 
 
(d) exemption for an additional period of 2 years for enterprises  established in rural areas;  
 
(e) at the end of the period approved for the concessions, application of a maximum rate 
reduced to half the current minimum rate on imports of raw materials specifically intended for 
production . 
Regime B 
Regime B is reserved for enterprises : 
(a) submitting an investment programme amounting to more than FC 100,000,000 ; 
(b) submitting a more significant job creation programme that gives preference to the 
recruitment of Comorian nationals.  
Approval for regime "B" confers the foll owing rights and benefits : 
(a) application of a reduced maximum rate to the Single Administrative Charge (RAU) on imports 
of equipment and materials specifically intended for production or opera tion within the framework 
of the programme approved , for a per iod of 10  years ; 
(b) exemption from turnover tax for equipment and materials specifically intended for production 
or operation within the framework of the programme approved , for a period of 10 years ; 
(c) in relation to profits tax, approved enterprises ar e authorized to deduct from the taxable 
profit 100 % of the investment made.  
These deductions may be spread over 8 successive tax years, at the end of which the balance of 
the tax credit authorized and unused may neither be allocated nor reimbursed ; exempti on for an 
additional period of 2 years for enterprises established in rural areas ; 
(d) at the end of the period approved for the concessions, application of a maximum rate 
reduced to half the current minimum rate on imports of raw materials specifically in tended for 
production . WT/ACC/COM/14  
- 58 - 
  (b) Technical regulations and standards  
Question 110 
Paragraph 414 : We take note of and welcome the government's statement that the SPS 
and TBT Checklist contained in WT/ACC/8 will be c ompleted and available for 
examinations at the first Working Party Meeting on the Comoros accession.  
Reply : 
All animal and plant imports require an approval issued by the N ational Institute of Agricultural 
Research and Fishing  (INRAPE), which operates  under the Minist ry of Agriculture and Fisheries . 
Phytosanitary certificat es are in use but the existing regulations (see Decree No. 87-019/PR on 
animal health protection) need improving . 
The Food Law involves several  minist ries, but Agriculture  and Health are the main departments 
responsible for supervision, regulation and implementation . 
A communication  project on food security with a national  coordinator is run by the Ministry of 
Health . 
Safety measures relating to  food, animal and plant products can be consu lted through  INRAPE 's 
services . 
(c) Sanitary and phytosanitary m easures  
Question 11 1 
We recognize that sanitary and phytosanitary (SPS) standards applied in the agricultural 
sector may present some diff iculty for Comoros and that you may look for international 
support in developing legislation that is consistent with the SPS agreement.  
We would like to more fully understand the Comoros' SPS system . Paragraphs 416 and  
417 state that Comoros requires certa in certificates to be issued for import of food 
products by the country of origin and the manufacturer . Does Comoros require any 
import permits or certificates to be issued by the government  of Comoros prior to 
importation of agricultural products ? If so, what permits or phytosanitary certificates 
are required and what agencies provide them?  
 What ministries are involved with food safety regulation and standards ? Could the 
Comoros government please explain their roles in creating legislation, monitoring, 
and enforcement?  
 
 Does Comoros have one official journal where all drafted food, plant and animal 
safety measures are available for public comment prior to adoption ? If not, do you 
have ministry journals?  
Reply : 
The national  SPS system is group ed in a number of structures mostly under the supervision of the 
Ministry responsible for a griculture, fisheries , the e nviron ment, energy , industr y and crafts  
(VP-APEEIA) . The Comoros  does not have an official journal that would allow the public to 
comment on SPS measures. 
Question  112 
Paragraph 416 to 420 : We would kindly request the Comoros to make clear reference to 
its SPS legislation in force . The wording of the Memorandum in its current form is rather 
vague and does not specify the title and number of the existing l egislation.  WT/ACC/COM/14  
- 59 - 
  The text does not mention whether or not Comoros is committed to follow international 
standards . However it is a  member of the World Organisation for Animal Health.  
Reply : 
The national SPS system is grouped in a number of structures mostly unde r the supervision of the 
Ministry responsible for agriculture, fisheries, the environment, energy, industry and crafts 
(VP-APEEIA) (VP -APEEIA), in particular, Direct orate -General of Fisher ies Resources,  the 
Direct orate-General of Agriculture and Livestock , and the National Direct orate of Veterinary Public 
Health . These directorates contain a number of departments and services involved in dealing with 
SPS matters . However, it must be acknowledged that there is no clear organization chart that 
details the tas ks and hierarchical organi zation of the various  services . The SPS system revolves 
around the following institu tions 
The Agri-food Department (DAA) . This department is responsible for food supervision . It is the 
contact  point for the National Codex Alimenta rius Committee  (CNCA) . The DAA has spearheaded 
the updating of the Food Law on the functions , organi zation and terms of reference of the 
institutions involved in food safety matters . In view of its importance, this legislation formed the 
subject of extensi ve consultations before being finally adopted . Thus, the establishment of the 
national CODEX  committee has enable d our country to : 
 meet the requirements relating to SPS rules; 
 join the CODEX Alimentar ius; 
 join the World O rganisation  for Animal Health , ISO,  OIML, SMIIC  and ARSO . 
As required by these instruments, the country has taken steps to build capacities and adopt  
appropriate regulations . To this end, a food law was adopted in 2013 and implementing regulations 
are in process of being drawn up . Decree No . 12/210/PR  (Annex  17) established a national 
standards committee with an administrative board . 
A sanitary and phytosanitary measures strategy project has been set up to support SPS measures 
which cannot be implemented without technical assistance . 
A CODEX  project on food hygiene has been set up with a national  coordinator to support the 
CODEX committee in implementing its action  plan. 
The Plant Protection  Service  serves as the CIPV contact point . It is responsible to the National  
Research Institute for A griculture, Fishing and the Environment (INRAPE) whose tasks appear to 
extend beyond agricultural research . In fact, INRAPE performs functions relating to the control of 
imports of animals and products of animal origin, together with tasks that are normally the 
responsibility of the veterinary se rvices . Moreover , INRAPE centralizes the quality analysis 
laboratories, facilities which also perform analyses for purposes of agricultural research . It should 
be noted, however, that  the analysis  infrastructure, outside the in vitro plant  propagation  
laboratory , seems to be restricted to basic physico -chemical and microbiological tests, which suffer 
from a chronic shortage of consumables such as reagents and culture  media . 
In addition to the services rel ating to the MA-APEEIA, the Minist ry of Health, Solidarit y, Social  
Cohesion and Gender  Promotion , the Hygiene and Sanitation Service provides secre tariat  services 
for the Nat ional Codex Alimentarius  Committee . It coordinated the updating of the recently 
adopted Public H ealth Code . The Public Health  Code contains provisions that concern SPS  measures  
and involve other public bodies , such as provisions relating to phytosanita ry products and 
food hygiene . 
The Direct orate of Foreign Trade intervenes tangentially in SPS matter s. This directorate supervises 
trade policies, in particular in connection with WTO accession.  WT/ACC/COM/14  
- 60 - 
  (e) State trading practices  
Question 11 3 
Paragraph 423 : What is the time -frame within which the Comoros w ill privatize : 
Comores  Télécom, SCH, ONICOR, MAMWE, SNPSF, COMAIR, APC, AL WATWAN, PNAC, 
and PNAC?  
Please provide a short description of each of these enterprises . Which if any of them 
enjoy monopoly or monopsony privileges in Comoros?  
Reply : 
All the enterprises mentioned belong to the State . They have monopol y privileges . 
Question 11 4 
Paragraph 423 states that a few state trading enterprises remain in Comoros . In light of 
the government granting import authorizations for rice to private operators, what 
percentage of the volume of rice imports has ONICOR accounted for in recent years ? Is 
Comoros considering privatizing the importation of rice?  
Reply : 
In special cases, the government  may issue import  authorizations for ordina ry rice to private 
operators . For example, if there is a shortage of rice on the market . 
(h) Trade -related environmental policies  
Question  115 
Paragraphs 427 -428: Comoros states that it is planning to levy environmental protection 
taxes  on imports that are not packaged in biodegradable material.  
 Please describe what products, specifically, would be covered by the tax, at what 
point of sale or entry into commerce in Comoros the tax would be applied, and 
confirm in the response that any ta x applied to imported goods would be applied 
equally to similar domestic production should that occur.  
 
 Within what time -frame is Comoros contemplating levying this tax ? Will this tax 
apply to all imports or will some imports be exempt, and if so, why?  
Reply: 
The Union of the  Comoros  is a small island State with a fragile and  vulnerable environment , which  
is why the government  is planning to introduce this environmental protection tax and is working on 
the corresponding legislation . The tax would be levied on all non-biodegradable  packaging, such as 
plastic bags, without discrimination.  
At present , the Union of the Comoros  is not applying any environmental  protection  tax to imports 
not packaged in biodegradable  material . However, the extent of the environmen tal problem in a 
small island country such as  the Comoros  requires that appropriate measures be taken . At the 
moment, it is difficult to foresee which products will be affected or the time -frame for 
implementation . Work on the regulations relating to the taxation of import ed non-biodegradable 
packaging is ongoing . WT/ACC/COM/14  
- 61 - 
  (l) Government  procurement practices  
Question 11 6 
Paragraphs 431 and 432 : Please provide Law No. 11-027/AU of  29 December  2011 to 
the Workin g Party . Does Comoros have any plans to seek to join the WTO Government  
Procurement Agreement?  
Reply : 
Law on government procurement  (see document WT/ACC/COM/12  No. 16) 
(m) Regulation of trade in transit   
Question 11 7 
Paragraph 433 : Does Comoros plan to adopt the COMESA CET ? If so, when?  
Reply : 
The Union of the  Comoros  is particip ating in the negotiations on the establishment of the COMESA  
customs union . This process  is not yet complete . 
Question 11 8 
In paragraph 456 (section on imports), Comoros states that a list of prohibitions and 
restrictions is not maintained due to resource limitations . We appreciate the limitations 
that Comoros faces ; however, we would like to understand how Comoros notifies 
import ers and exporters about prohibitions and restrictions that are in place . Could 
Comoros please provide a list of all quarantine pests and diseases for which your 
government has set official controls?  
Reply : 
Question answered by the questionnaire on SPS  measures (see document WT/ACC/COM/11 ). 
4. Policies affecting foreign trade in agricultural products  
(a) Import s 
Question  119 
In paragraph 458, Comoro s noted its application of the precautionary principle . Can 
Comoros provide more information on how the precautionary principle is applied in 
developing and implementing SPS measures ? Does Comoros base its SPS measures on 
the international standards, recom mendations and guidelines recognized by the WTO?  
We would also like Comoros to explain more fully how your country regulates pesticides, 
residues and veterinary drugs ? Which agency sets these requirements?  
Reply : 
At present , there are four major texts that form the framework for product sanitary control 
operations : 
 Decree regulating animal health protection ; 
 Decree regulating foodstuff  production, storage, marketing and safety i nspection ; 
 Decree regulating the importation of animals and products of animal  origin; 
 Law on food legislation.  WT/ACC/COM/14  
- 62 - 
  Question 1 20 
As you are aware, under Annex 3.B of the WTO SPS Agreement mandates that each 
Member shall ensure that one enquiry point exists which is responsible for providing 
answers to all reasonable question concerning SP S regulations, procedures and other 
SPS issues . It appears that the Comoros does not have such an enquiry point . If it has, 
please confirm . If not, what is Comoros' plan for establishing a fully functional SPS 
National Notification Authority (NNA) and Enqu iry Point (EP)?  Could Comoros please 
provide details on the NNA and EP contact information, staffing, employees 
responsibilities aside from functions related to the NNA and EP, and  in which Ministry 
and department it is located?  We encourage Comoros to uti lize its SPS Enquiry Point 
employees for National Notification work and vice versa.  
Will Comoros require technical assistance in the form of SPS NNA and EP training ?  Has 
this been requested ? What procedures will be put in place to ensure that draft SPS 
measures will be published in the official gazette and notified to the WTO in their early 
stages allowing for the WTO recommended 60 day comment period?  
Reply : 
At present, the WTO  reference  centre in the Ministry of the Economy and Trade is the national 
notification authority for the WTO . 
Question 12 1 
What procedures will be put into place to ensure that relevant regulatory/food safety 
agencies are in close communication with the SPS NNA to ensure the timely disseminate 
of notifications to WTO?  
 Please list, a nd provide copies of, all relevant current legislation that deals with 
SPS requirements for imports.  
 
 Please outline Comoros' plans for additional SPS legislation.  
Reply : 
Question answered by th e questionnaire on SPS  measures (see document WT/ACC/COM/ 11). 
Agricultural market access  
Question 12 2 
We recognize that Comoros does not have tariff rate quotas . In Table 10, Comoros 
provided the average tariff rates for groups of products defined as capital goods, 
intermediate products, and consumer goods . However, figures are not available for more 
specific product categories, such as agricultural imports . Does Comoros plan to provide 
these figures in the near future?  
What percentage of Comoros agricultural tariff lines are assessed on an ad valorem 
basis compared t o on a specific, by volume, basis?  
Reply : 
In the Comoros, almost all agricultural  produ cts are subject to ad valorem  duties and there are 
hardly any agr icultural produ cts subject to specific duty . WT/ACC/COM/14  
- 63 - 
  Agricultural domestic support  
Question 12 3 
While the MFTR s tates that Comoros does not have the resources to provide direct 
financial support for agriculture, when will Comoros provide data on agricultural 
supports and subsidies, including a Domestic Support table, for a recent 
three -year period for Working Party review and comment?  
Reply : 
Question answered by the qu estionnaire on domestic support and subsidies 
(see document  WT/ACC/ SPEC/ COM/ 3). 
(d) Export credits, export credit guarantees or insurance programmes   
Question 12 4 
Paragraph 464 : Comoros states:  
"The government  of the Union of the Comoros envisages supporting exports through 
tools such as export credits, export credit guarantees or insurance programmes b ut has 
no such measures in place currently."  
We urge the government to work with us, should Comoros decide to devise such tools . 
Our goal is to help Comoros avoid devising tools that could run afoul of the WTO SCM 
Agreement, items (j) and (k) of the Illust rative List of Export Subsidies.  
Reply : 
When the  Comoros  decides to design a tool for supporting its export s, it will do so entirely in 
conformity with  the provisions of the WTO 's SCM Agreement and more particularly items (j) and  
(k) of the Illustrative Li st of Export Subsidies appended to that Agreement . 
In this case collaboration will be necessary . 
5. Policies affecting foreign trade in other sectors  
Question  125 
Paragraph 4 69: As the interim EPA has never been signed by Comoros, could the 
Comoros please clarify the text with regard to the interim EPA and preferential access to 
the EU market ? Similarly, could Comoros please clarify the undertaking to gradually 
liberalize over  15 years 80 % of its trade with the EU?  
Reply : 
The interim EPA has been  only initialled, not signed . The ne gotiations for a complet e EPA are 
ongoing . 
 
The re duction of customs duties by 80% is not being applied in practice , since signature will follow 
only once the ESA region has concluded a complete EPA . 
 
The Comor os government  envisages signing the interim agreement between now and the first half 
of 2015, pending the complete agreement which has not yet led to concrete negotiations . 
 WT/ACC/COM/14  
- 64 - 
  V. TRADE -RELATED INTE LLECTUAL PROPERTY REGIME  
1. Overview  
(a) Intellectual property policy  
Question 126 
Paragraph 483 : Has Comor os' accession to the African Intellectual Property 
Organization (OAPI) helped strengthen the government's policy of protecting Comorian 
creativity and inventiveness and stimulating creation and production of intellectual 
works ? If so, how ? If not, why not?  
Reply : 
The Comoros  acceded to the  African Intellectual Property Organization  (OAPI) , which is governed 
by the Bangui Agreement, on 2 5 May 2013 (see document WT/ACC/COM/12  No. 17). This 
accession makes it mandatory to apply the relevant provisions of the B angui Agreement at national 
level. In 2010, the Comoros  began restructur ing the management of IP by setting up a n office  via 
Decree  173/PR to which invent ors and creators  can go to register and protect patents , trademarks , 
industrial designs and models , trade names , copyright and related rights . The Comori an authorities 
requested technical a ssistance from the World Intellectual Property O rganization ( WIPO ) and the 
OAPI to build CIPO 's capacit ies (see document WT/ACC/COM/12  No. 18) with a view to identif ying 
the priority needs of the Comoros  where intellectual property is concerned . There is already a 
WIPO diagnostic  mission for formulati ng a development strategy and a mission  by the OAPI to 
provide initial staff training, to be followed by others . 
Question 1 27 
Paragraphs 484 and 485 : Comoros notes that the process of drafting Comorian 
intellectual property legislation is in its infancy, and the current body of legislation is 
inherited from the French colonial period . Does Comoros plan to update its copyright and 
related rights laws ? If so, where is the country in this process and how does the 
WTO  TRIPS Agreement figure into this process?  
Reply : 
The intellectual property le gislation is out of date . This le gislation  has been overtaken by all the 
internationa l agreements on IP and by the requirements of the standards recommended by WIPO . 
Accordingly, the country needs to engage in a total recasting of the le gislation  and in this 
connection the country will introduce a National Intellectual Property Development Pla n (PNIP)  
whose global objectives will include, in particular : 
 giving the country a modern system and human and material resources such as to provide 
adequate and effective protection for intellectual property rights;  
 developing information, IP training, to ols and le gislation , the latter by revising all the 
nationa l legislative  texts to ensure that they reflect the great principles stemming from the 
international  conventions on intellectual property and, in particular, the Marrakesh 
agreements;  
 unifying, harmonizing and m oderni zing the national network of the R egister of Commerce;  
 improving the le gislati ve and regulatory framework . 
Capacity building will benefit  the national i nstitutions concern ed, in particular members of the legal 
service, journalists and m embers of parliament . WT/ACC/COM/14  
- 65 - 
  (b) Agencies responsible for policy formulation and implementation  
Question 128 
Paragraph 490 : "The role of OCPI, a government body attached to the Ministries of 
Culture and Industry, and the focal point in relation to WIPO, includes responsibility for 
monitoring compliance with legislation on copyright and related rights in the Union of 
the Comoros ." Please identify and provide copies of the legislation on copyright and 
related rights with which OCPI monitors compliance.  
Reply : 
As fol lows from the foregoing , Law 64-1360 of 13 December  1960 and Decree No. 65-621 of 
27 July 1965 remain in force . 
Question  129 
Paragraphs 486 and 491 : Comoros notes that the Comorian Intellectual Property Office 
(OCPI) was established in 2010 and has been as signed several duties supporting 
copyright and related rights, but it has encountered difficulties becoming operational . Is 
there a government agency currently handling the administration of copyright and 
related rights policy?  
Reply : 
For the time being , the Comorian Intellectual Property Office (OCPI) is responsible for all decisions 
concerning intellectual property . 
(c) Membership of international intellectual property conventions and of regional or 
bilateral agreements   
Question 130 
Paragraph 495 : The Union of the Comoros has been a member of the Berne Convention 
since 17 January  2005 . The Report notes that Comoro s intends to accede to the 
Rome  Convention in the "near future;" does this mean in 2014 ? Also, please describe 
how sound recordings (both Comorian phonograms as well as foreign phonograms) are 
currently protected under Comorian law . Furthermore, does Comor os plan to join the 
WIPO Copyright Treaty, the WIPO Performances and Phonograms Treaty, and the  
Geneva Convention  for the Protection of Producers of Phonograms Against Unaut horized 
Duplication of Their Phonograms?  
Reply : 
The laws cited in reference to the na tional  level protect sound recordings , without any distinction 
between domestic and foreign phonograms . WT/ACC/COM/14  
- 66 - 
  (d) Application of national and MFN treatment to foreign nationals  
Question 13 1 
Paragraph 499 : We would like to confirm that, like the US, Comoros will apply national 
treatment to all stakeholders for all copyright and related rights granted by its 
legislation.  
Reply : 
The Comorian le gislation in force does not authorize d ifferential treatment based on the nationalit y 
of the author . 
2. Substantive standards of protection  
(a) Copyright and related rights  
Question 13 2 
Paragraph 5 03: What does "property rights are inalienable" mean ? Specifically, can an 
author transfer rights ? Are phonograms and performers also protected, and can these 
entities transfer their rights?  
Reply : 
It is always the author who authorizes the transfer  of this right and the Law protects him . 
4. Enforcement  
(b) Provisional measures  
Question 133  
Paragraph 534 : Comoros notes that its draft new Intellectual Property Code will include 
measures tailor ed to the country's situation . What problems unique to Comoros will be 
addressed in the draft Code, and how will they be handled?  
Reply : 
The Code will be based on regulations that provide for repressive measures, in particular, the 
establishment of a joint  institutional system  (intellectual property office , fraud prevention , customs , 
gendarmerie, police) . 
In the absence of an  administrative  structure responsible for intellectu al property , complainants 
were resorting to the competent courts . 
If such cases  arise, they will benefit from the office 's support . 
Appeals may be addressed to the office as the higher administrative authority  provided that the 
work in question has been previously registered . 
(c) Administrative procedures and remedies  
Question 13 4 
Paragraph 535 : In light of the fact that no administrative procedures or remedies have 
been implemented, how have the intellectual property laws been enforced through the 
courts ? Has enforcement by judicia l services, the police and the gendarmerie proven 
effective ? What type of administrative recourse is available for copyright and related 
right infringements?  WT/ACC/COM/14  
- 67 - 
  Reply : 
If such cases arise, they will benefit from the office 's support.  
Appeals may be addressed to the office as the higher administrative authority provided that the 
work in question has been previously registered . 
(e) Criminal procedures  
Question  135 
Paragraphs 539 and 540 : Although there is no statistical data available on 
IPR enforcement, can Comoros confirm whether there have been any confiscations or 
damages paid in the event of infringements?  
Reply : 
During the course of  2013, the courts of Moroni heard and ruled on cases of infringement relating 
to the use o f a musical work  without the prior authorization of the authors . Damages  were 
awarded . 
Question 13 6 
General Note : Please provide texts of Comoros' intellectual property laws to the 
Working  Party so that Members may review them . Specific references to the R eport 
appear below:  
 Paragraph 502 : Please provide a copy of the law enacting Books II and III of the 
Intellectual Property Code.  
 
 Paragraph 530 : Please provide a copy of the laws referred to (i.e., Book, Chapter I, 
Articles L.131 -1 to L.131 -8 and Articles L.132 -1 to L.132 -34 and Sections 1 to 5 of 
Chapter II).  
 
 Paragraph 539, number 5 : Please provide copies of the legal instruments related to 
copyright and related rights:  
 Law No. 57-298 of 1 1 March  1957 on literary and artistic property;  
 
 Copyright and rela ted rights are governed by Books I to III of the Intellectual 
Property Code;  
 
 Decree No. 95-385 of 1 0 April  1995 on the regulatory part of the Intellectual 
Property Code;  
 
 Decree No. 58-446 of 1 9 April  1958 implementing Law No. 57-298 of 
11 March  1957 on l iterary and artistic property;  
 
 Decree No. 58-447 of 1 9 April  1958 implementing Law No. 57-298 of 
11 March  1957 on literary and artistic property;  
 
 Decree No. 65-464 of 1 0 June  1965 on the choice of experts in patent disputes;  
 
 Articles 1 to 3 of Decree No. 67-181 of 6 March  1967 implementing 
Law No. 64-689 of 8 July 1964 on the application of the principle of reciprocity 
in matters of copyright protection;  
 
 Decree No. 69-190 of 1 5 February  1969 on the seizure for counterfeiting 
procedure in matters relatin g to patents;  
 WT/ACC/COM/14  
- 68 - 
   Decree No. 69-975 of 1 8 October  1969 on compulsory licences, automatic 
licences, the expropriation of inventions and various procedural provisions.  
 
Reply : 
As Comoros  is a member of the OAPI, in the absence of compatible national texts  we ap ply the 
OAPI legislation . However, these instruments will be appended  (see document WT/ACC/COM/12 ). 
Question 13 7 
In addition, we have the following questions on intellectual property rights protection 
and enforcement in the Comoros to which we request a re sponse:  
 Please  provide the texts and legal citations to Customs laws or regulations to the 
procedure that enables a right holder to a file a written application to authorities 
for suspension of suspected counterfeit trademark or pirated copyright goods, as  
required by Articles 51 -55 of the WTO TRIPs Agreement.  
 
 Please  provide texts and legal citations to Customs laws or regulations that 
provide that authorities shall not allow the re -exportation of counterfeit trademark 
goods, in an unaltered state or subje ct them to a different customs procedure, 
other than in exceptional circumstances, as required by Article 59 of the 
WTO  TRIPs Agreement.  
Reply : 
Question answered by the questionnaire on the TRIPS . 
VI. TRADE -RELATED SERVICES REGIME  
1. Overview  
Question 13 8 
Paragraphs 549 and 550 : According to par a. 550, legislation opened up the sector for 
competition in 2008 . However, par a. 549 reports that there is currently only one 
provider of teleco mmunications services on the local market, which is a State -owned 
telecommunications company . What are the plans to encourage more operators ? Are 
there any segments of the telecommunications market that are not open for 
competition?  
Reply : 
Through the Mini stry of the Economy and Finance, the government  of the Union of the Comoros is 
engaged in a process of privatization of Comoros Télécom (CT), its national telecommunications 
company, by means of a restructuring of its activities via the transfer of its ess ential assets to a 
new ad hoc company and the opening up  of 51% of the latter 's equity to a strategic  investor  or 
group of strategic investors . The other shareholders would be the government  (34%) and the 
employees of CT (15 %). 
The strategic investor will be chosen by international tender.  
Interested investors are  invited to submit an expression of interest,  including a presentation of 
their company and a cover ing letter . 
The tele coms sector was opened up by virtue of Law No. 95-008/AF on the concession  of 
State -owned companies, supplemented by Law No. 08-007/AU of 4 March  2008 on the information 
and communication  technology sectors  and by Decree No. 09-064/PR of 23 May 2009 establishing 
the procedures for implementing Law No. 08-007/AU.  WT/ACC/COM/14  
- 69 - 
  The Comorian State h as oriented its economic  policy towards divesting itself of the various  
monopol ies for the benefit of the private sector . 
Question  139 
Paragraph 561 : Please provide the following to the Working Party:  
 Law No. 86-017/AF enacted in 1997 on the Urban Planning  and Habitat Code;  
 
 Decree No. 05-077/PR of 1 August  2005 on the Government  Procurement Code;  
 
 Law No. 07-010/AU of 3 1 August  2007 on the Investment Code;  
 
 Uniform Acts of the OHADA, including the provisions on companies.  
Reply : 
Urban  Planning Code  (see document WT/ACC/COM/12  No. 19) 
Investment Code (see document WT/ACC/COM/12  No. 1) 
Government  Procurement Code  (see document WT/ACC/COM/12  No. 16) 
 Tourism and related travel services  
Question  140 
Paragraph 577 : It is explained that the National Investment Pro motions  Agency (ANPI) 
has various possibilities to encourage foreign  investment in the tourism sector, 
including a number of derogations such as exemptions from tax and the right to transfer 
all profits abroad etc. A re these measures confined to tourism se rvices ? If that is the 
case, how is the sector delineated ? Are the derogations and other measures granted 
/applied in a fixed and identical manner in all cases or are they used depending o n the 
characteristics of individual projects in the sector?  
Reply : 
The benefits mentioned here, which fall within the framework of the Investment  Code, are not 
intended exclusive ly for the tourism  sector . They largely  concern the economic activities sector, 
including tourism . These benefits, for which there are two regimes  A and B, depend on : 
 the investment  programme ; 
 the job creation p rogramme , with  preference  given  to the recruitment of Comorian 
nationals;  
 the location  (urban, rural) . 
Under Re gime A, the enterprise must submit an investment  programme for between FC  5,000,000 
and FC 100,000,000, whereas under Re gime B, the enterprise must submit an investment 
programme for more than FC 100,000,000. Moreover, a rural location is more advantageous than 
an urban one , in terms  of the duration of the approval . 
The provisions of the Investment Code indicated above are supplemented by laws specific to each 
sector of trade in services including tourism . Ref: Law on tourism . 
Question  141 
Pages 88 -89: Please provide the following to the Working Party:  
 Law No. 80-87 of 2 6 June  1980, "t he Banking Law", regulating banks and financial 
establishments;  WT/ACC/COM/14  
- 70 - 
   
 Law No. 95 6 016 AF of 7 July 1995 establishing a National Guarantee Fund;  
 
 BCC Instruction No. 12/1999 on periodic accounts to be submitted by the banks 
and financial establishments;  
 
 BCC In struction No. 13/2000/COB on the definition of capital requirements for 
banks and financial establishments;  
 
 BCC Instruction No. 14/2000/COB on the solvency ratio of banks and financial 
establishments;  
 
 Recognition of Savings and Credit Mutuals by the Mini ster of Finance, the Budget 
and the Plan, ref. : 97-348/MFBP CAB;  
 
 Extracts from Ordinance No. 92-004 establishing the statute of the SNPT;  
 
 Instruction on foreign exchange transactions involving the euro conducted by the 
SNPT;  
 
 Decree 87 -005/PR of 1 6 Janua ry 1987 regulating financial relations between the 
Islamic Federal Republic of the Comoros and other countries;  
 
 BCC Instruction No. 1/RDC of 1 7 February  1987 on the appointment of authorized 
intermediaries for financial relations with other countries;  
 
 BCC Instruction No. 2/RDC of 1 7 February  1987 on authorized intermediaries : 
general  provisions;  
 
 BCC Instruction No. 5/RDC  of 1 7 February  1987 on the regulation of foreign 
exchange : provisions  on accounts open to non -residents;  
 
 BCC Instruction No. 6/RDC of 17 February  1987 on foreign travel costs : provisions 
on travellers;  
 
 BCC Instruction No. 7/RDC of 1 7 February  1987 on the regulation of foreign 
exchange : statistical obligations incumbent upon authorized intermediaries;  
 
 BCC Instruction No. 8/RDC of 2 6 July 1988 on travellers' cheques : notices and 
instructions;  
 
 BCC Instruction No. 9/RDC of 2 6 July 1988 on travellers' cheques denominated in 
the units of account of the preferential trade area : transactions and operational 
procedures;  
 
 BCC Instruction No. 10/RDC of 1 6 December  1991 on provisions concerning 
exports;  
 
 BCC Instruction No. 11/RDC of 1 6 December  1991 on provisions concerning 
imports;  
 
 Circular No. 91-01 of 1 6 December  1991 on controls on the external position of 
banks and  financial establishments;  
 
 Circular No. 91-02 of 1 6 December  1991 on enumeration by nature of movements 
registered on the external contra accounts of banks and financial establishments;  
 
 Circular No. 91-03 of 1 6 December  1991 on the enumeration of transactions on 
foreign notes and traveller's cheques by banks and financial establishments;  
 
 Order No. 99-001/MECIA/CAB of 4 January  2000 eliminating import and export 
licences;  WT/ACC/COM/14  
- 71 - 
   
 Circular No. 304/CD of 7 February  2000 to importers and exporters on 
domiciliation of  foreign trade transactio ns; 
 
 Law on leasing, 2012.  
Reply : 
A co llection  of legal texts governing the banking sector can be found in document 
WT/ACC/COM/12  No. 7. 
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD 
COUNTRIES  
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade in 
services  
Question 142 
Paragraph 652 : The government states that it "will submit the list of agreements 
relating to for eign trade in goods and trade in services to the Working Party ." We look 
forward to receiving the list.  
Reply : 
The list is available in  document WT/ACC/COM/12  Nos. 20, 21, 30 and 31. 
2. Economic integration, customs union and free trade agreements  
Question 14 3 
Paragraph 663 : According to the MFTR:  
"The Union of the Comoros has signed a number of bilateral economic cooperation 
agreements incorporating trade -related provisions that do not envisage a preferential or 
free trade regime in the strict sense."  
Please name each of the countries with whom Comoros has signed these agreements . 
Are each of these bilateral agreements in force ? What are the trade -related provisions of 
each of the se agreements?  
Please provide, for the Working Party's examination, the Comoros' bilateral agreements 
with Madagascar, Kuwait, Turkey, and Tanzania.  
Reply : 
See document WT/ACC/COM/12  Nos. 20, 21, 30 and  31. 
__________